District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Un hombre de Oregón se declara culpable de un delito de odio federal por amenazar con llevar a cabo una masacre en una iglesia en EugeneRead the Press Release
El Departamento de Justicia anunció hoy que el acusado Benjamín Jaramillo Hernández, de 69 años, se declaró culpable hoy de un delito de odio federal y un cargo de posesión ilícita de munición que se basan en una serie de acciones cada vez más amenazantes y violentas con la iglesia católica St. Mary Catholic Church en Eugene como objetivo en septiembre del 2018. Lo anunciaron Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles, y Billy J. Williams, el Fiscal Federal para el Distrito de Oregón.
«La División de Derechos Civiles se mantiene firme en su creencia que todas las personas deben vivir libres de amenazas de violencia», declaró el Fiscal General Auxiliar, Eric Dreiband. «El Departamento de Justicia seguirá defendiendo los derechos de individuos que se convierten en víctimas por ejercer sus creencias religiosas y enjuiciaremos a cualquiera que vulnere esos derechos».
«Las leyes contra los delitos de odio protegen valores estadounidenses fundamentales, como la libertad del culto. La declaración de culpabilidad de hoy reafirma el principio básico de que nadie debe vivir con miedo por motivos de su religión», dijo el Fiscal Federal Williamson. «Nuestra oficina continuará investigando activamente y enjuiciando los delitos de odio y buscando la justicia para todas las víctimas».
«Amenazas de acciones violentas atacan el derecho fundamental como estadounidense a vivir, trabajar y rezar sin miedo. Trabajando con la comunidad y nuestras agencias asociadas del orden público, nos fortalecemos gracias a nuestros valores comunes de mantener a salvo a todos independientemente de su raza, religión o creencias políticas», afirmó el Agente Especial Encargado Renn Cannon.
Según los documentos judiciales, el 9 de septiembre del 2018, Hernández fue escoltado fuera de la propiedad de St. Mary tras un ataque de ira durante el sacramento de la comunión. Cinco días más tarde, el 14 de septiembre, un empleado de la iglesia informó a la Policía de Eugene que alguien había dispensado aerosol de pimienta en los mangos de las puertas exteriores y en la ranura para el correo de la puerta principal de la oficina de St. Mary. Los empleados declararon sentir una sensación de ardor en sus dedos y dificultades para respirar. Un policía de Eugene y un agente del FBI identificaron a Hernández en unas videosecuencias de vigilancia de la iglesia como la persona responsable de los dos incidentes.
El 16 de septiembre del 2018, a Hernández lo vieron nuevamente cerca de St. Mary. Un testigo vio a Hernández al otro lado de la calle de la iglesia cuando este paró cerca de la Biblioteca Municipal de Eugene y gritó al testigo, «Aquí tengo algo para ti», mientras señalaba a una bolsa que llevaba encima.
Varios días más tarde, el 20 de septiembre, los empleados de St. Mary avisaron que habían encontrado una nota amenazante y siete balas explosivas de una Sig de 10mm en la oficina. La nota amenazaba a la iglesia con «2 MP5 con 50 cartuchos cada uno», un tipo de metralleta. La nota concluyó así: «A Eugene lo van a poner en el [palabrota] mapa».
Un policía de Eugene revisó nuevamente las videosecuencias de vigilancia de la iglesia e identificó a Hernández como el individuo que había dejado la nota y las balas. El 21 de septiembre del 2018, Hernández fue detenido por la Policía de Eugene en la Biblioteca Municipal de Eugene y acusado de intimidación en segundo grado, vandalismo en segundo grado y dos cargos de entrada no autorizada en segundo grado. Durante un registro de Hernández, los agentes hallaron una lata parcialmente vacía de aerosol de pimienta, tres cartuchos de escopeta .410 y 13 balas explosivas de una Sig de 10mm.
Hernández fue acusado en la lectura penal de cargos de un cargo de obstrucción al libre ejercicio de creencias religiosas y otro de delincuente en posesión de municiones.
Hernández se enfrenta a una pena máxima de 20 años de cárcel y una multa penal de hasta 250.000 $ por el delito de odio, y una pena máxima de 10 años de cárcel por la posesión ilícita de municiones. Hernández será condenado el 22 de mayo del 2019 ante la Juez del Tribunal de Distrito Federal Ann Aiken.
Este caso lo están enjuiciando Gavin Bruce, un Fiscal Federal Auxiliar de la Fiscalía Federal de Oregón, y Cameron Bell, un Abogado de Litigios de la División de Derechos Civiles del Departamento de Justicia de los EE. UU. El caso fue investigado por la División del FBI en Eugene y la Policía de Eugene.
Para más información sobre el trabajo del Departamento de Justicia para combatir y prevenir los delitos de odio, vaya a www.justice.gov/hatecrimes: es un único portal con enlaces a recursos del Departamento de Justicia relacionados con delitos de odio para la policía, los medios de comunicación, investigadores, víctimas, grupos de apoyo y otras organizaciones y personas.
Three Individuals Sentenced to Prison for Their Roles in Bribery Schemes Involving VA Program for Disabled Military VeteransRead the Press Release
Two owners and an employee of for-profit, non-accredited schools were sentenced during the last two days for bribing a public official at the U.S. Department of Veterans Affairs (VA) in exchange for the public official’s facilitation of over $2 million in payments that were supposed to be dedicated to providing vocational training for military veterans with service-connected disabilities.
Albert Poawui, 41, of Laurel, Maryland, was the owner of Atius Technology Institute (“Atius”), a school purporting to specialize in information technology courses. Sombo Kanneh, 29, of McLean, Virginia, was Poawui’s employee at Atius. Michelle Stevens, 57, of Waldorf, Maryland, was the owner of Eelon Training Academy, a school purporting to specialize in digital media courses.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Assistant Director in Charge Nancy McNamara of FBI’s Washington Field Office and Special Agent in Charge Kim Lampkins of U.S. Department of Veterans Affairs Office of Inspector General (OIG) Mid-Atlantic Field Office made the announcement.
All three defendants were sentenced by U.S. District Judge John D. Bates of the District of Columbia. Poawui was sentenced to serve 70 months in prison followed by three years of supervised release and ordered to pay $1.5 million in restitution to the VA. Kanneh was sentenced to serve 20 months in prison followed by three years of supervised release and was ordered to pay $113,227.30 in restitution to the VA and to forfeit $1.5 million. Stevens was sentenced to serve 30 months in prison followed by three years of supervised release and ordered to pay $83,000 in restitution to the VA and to forfeit $83,000.
James King, the VA official who all three defendants bribed, has pleaded guilty to bribery, wire fraud, and falsification of documents, and will be sentenced on Friday, Feb. 15.
The Vocational Rehabilitation and Employment (VR&E) program is a VA program that provides disabled U.S. military veterans with education and employment-related services. VR&E program counselors advise veterans under their supervision which schools to attend and facilitate payments to those schools for veterans’ tuition and necessary supplies.
According to admissions made in connection with Poawui and Kanneh’s pleas, in or about August 2015, Poawui and King agreed that Poawui would pay King a seven percent cash kickback of all payments made by the VA to Atius. In exchange, King steered VR&E program veterans to Atius regardless of the veterans’ educational needs or interests and notwithstanding their repeated complaints about the poor quality of education at Atius.
Between Aug. 2015 and Dec. 2017, Poawui, King, and the scheme’s other participants caused the VA to pay Atius approximately $2,217,259.44. Poawui paid King over $155,000 as part of the illicit bribery scheme. These bribery payments were hand-delivered by Poawui or Kanneh to King or King’s assistant, who was a veteran enrolled in the VR&E program. Kanneh admitted that she routinely moved money between Atius’s bank accounts to facilitate bribe payments to King.
Poawui also admitted that he made numerous false representations to the VA to enhance the scheme’s profits. For example, Poawui certified to the VA that veterans attending Atius were enrolled in up to 32 hours of class per week, when in fact he knew that Atius offered a maximum of six weekly class hours. After the VA initiated an administrative audit of Atius, Poawui and King took steps to conceal the truth about earlier misrepresentations they had made to the VA.
According to admissions made in connection with Stevens’ plea, she created Eelon Training Academy after learning about the VR&E program from King. In or about Sept. 2016, King facilitated the first tuition payment from the VA to Eelon. Shortly after receiving this payment, King told Stevens that she should give him seven percent of the monies paid by the VA to Eelon. King proceeded to steer veterans under his supervision to Eelon regardless of their resistance to attending Stevens’ school.
Stevens admitted to later making two cash payments of $1,500 to King in furtherance of her scheme to bribe King in exchange for King sending veterans under his supervision to Eelon and facilitating the VA’s payments to Stevens. In total, Stevens received approximately $83,000 from the VA for education that she purported to provide to veteran students. Stevens submitted invoices to the VA amounting to no less than $300,000 for the tuition and equipment of seven students, but was not paid the balance of the invoice amount due to the VA’s ongoing investigation into Eelon following complaints by students about the poor quality of education.
In an effort to procure the outstanding payments from the VA, Stevens made numerous fraudulent misrepresentations to the VA, and maintained fraudulent student files in the event of an audit by the VA. For example, Stevens emailed to the VA an “attendance” sheet for eight students. The attendance sheet was created by Stevens and included handwritten check marks purporting to represent the dates that the students attended class. In fact, as Stevens well knew, the students had not attended class on many of those dates nor was class even held on many of those dates.
Poawui, Kanneh and Stevens’ sentences are the result of an ongoing investigation by the FBI’s Washington Field Office and the Department of Veterans Affairs Office of Inspector General. Trial Attorney Simon J. Cataldo of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney David Misler of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Micronesian Government Official Arrested in Money Laundering Scheme Involving Foreign BriberyRead the Press Release
Charges were unsealed yesterday against a Micronesian government official for his alleged participation in a money laundering scheme involving bribes made to corruptly secure engineering and project management contracts from the government of the Federated States of Micronesia (FSM). In a related matter, on Jan. 22, a U.S. executive pleaded guilty for his role in a scheme to, among other things, bribe the Micronesian official in violation of the Foreign Corrupt Practices Act (FCPA).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Sean Kaul of the FBI’s Honolulu Field Office made the announcement.
Master Halbert, 44, a Micronesian citizen, was charged in a criminal complaint filed in the District of Hawaii with one count of conspiracy to commit money laundering. Halbert was arrested yesterday in Honolulu, Hawaii, and had his initial court appearance before U.S. Magistrate Judge Richard L. Puglisi of the District of Hawaii. Halbert is scheduled to have a pretrial detention hearing on Feb. 13 and a preliminary hearing on Feb. 22.
According to the criminal complaint, Halbert was a government official in the FSM Department of Transportation, Communications and Infrastructure who administered FSM’s aviation programs, including the management of its airports. The complaint alleges that between 2006 and 2016, a Hawaii-based engineering and consulting company owned by Frank James Lyon paid bribes to FSM officials, including Halbert, to obtain and retain contracts with the FSM government valued at nearly $8 million. According to the complaint, Lyon entered into an agreement with Halbert to bribe Halbert in exchange for Halbert’s assistance in securing contracts for Lyon and his company. Lyon and Halbert allegedly agreed that these bribes would be transported from the United States to FSM.
The charges contained in the complaint are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In the related matter, Lyon, 53, of Honolulu, Hawaii, pleaded guilty on Jan. 22 to a one-count information filed in the District of Hawaii charging him with conspiracy to violate the anti-bribery provisions of the FCPA and to commit federal program fraud. Lyon is scheduled to be sentenced on May 13.
Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section is prosecuting the case. The Criminal Division’s Office of International Affairs also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
U. S. and West Virginia Reach Settlement with Antero Resources Corporation for Clean Water Act Violations at 32 West Virginia SitesRead the Press Release
The Department of Justice, the United States Environmental Protection Agency (EPA), and the West Virginia Department of Environmental Protection (WVDEP) announced that they have reached a settlement with Antero Resources Corporation resolving alleged violations of Section 404 of the Clean Water Act (CWA) at 32 sites in Harrison, Doddridge, and Tyler Counties in West Virginia.
The settlement filed in U.S. District Court for the Northern District of West Virginia requires Antero to pay a civil penalty of $3.15 million and to conduct restoration, stabilization, and mitigation work at impacted sites. Antero will also provide mitigation for aquatic resource impacts.
“The Department of Justice is pleased to join with the EPA and the West Virginia Department of Environmental Protection in reaching this settlement and will continue to work with its law enforcement partners to hold corporations accountable for violating the nation’s environmental laws,” said Assistant Attorney General Jeffrey Bossert Clark of the Environment and Natural Resources Division.
“This settlement seeks to rectify harm done to U.S. waters from unauthorized activities undertaken by Antero, and demonstrates that federal and state regulators are committed to pursuing violations that threaten human health and the environment,” said EPA Regional Administrator Cosmo Servidio.
Impacts to aquatic resources will be partially offset at a 51.5-acre permittee-responsible mitigation site that will restore, enhance, create, and preserve over 11,500 linear feet of streams and more than 3 acres of wetlands. The EPA-estimated value of the proposed mitigation and restoration is $8 million.
The violations involved the unauthorized disposal of dredged and fill materials into waters of the United States at or near sites where Antero had constructed well pads, compressor stations, impoundments, pipeline crossings, access roads, and other structures associated with Marcellus Shale natural gas extraction by means of hydraulic fracturing, also known as fracking.
While each of the 32 sites varied regarding the extent of the impact to wetlands and streams, the unauthorized activities impacted more than 19,000 linear feet of streams and over four acres of wetlands and included:
- Stream impoundments;
- Filling wetlands and streams for compressor station pads;
- Realigning and culverting stream segments; and
- Failing to fully restore “temporary” impacts.
Approximately half of the sites were identified by Antero through a self-audit. Several of the sites were associated with construction failures or “slips” from access roads and pads.
The proposed settlement which is subject to a 30-day public comment period is available at: https://www.justice.gov/enrd/consent-decrees.
For more information about Clean Water Act Section 404 protection of wetlands and waterways, visit https://www.epa.gov/cwa-404.
Texas Man Charged by Criminal Complaint with Conspiring to Provide Material Support to a Foreign Terrorist OrganizationRead the Press Release
A Texas man was charged today with conspiring to provide material support to a foreign terrorist organization. Assistant Attorney General John C. Demers of the National Security Division, U.S. Attorney Erin Nealy Cox for the Northern District of Texas, and Special Agent in Charge Eric Jackson of the FBI’s Dallas Division made the announcement.
Michael Kyle Sewell, 18, of Arlington, Texas, was charged today by criminal complaint in Fort Worth, Texas, with conspiring to provide material support and resources to Lashkar-e-Taiba (LeT), a Pakistani-based foreign terrorist organization. Sewell has been detained pending further court proceedings.
“Sewell allegedly used social media to recruit and encourage an individual to travel overseas to join a foreign terrorist organization and conspired with that person to provide material support to that organization,” said Assistant Attorney General Demers. “The National Security Division is committed to hold accountable those who engage in this behavior.”
“We stay on constant alert for radicals plotting attacks targeting citizens of the United States, here or abroad,” said U.S. Attorney Nealy Cox. “Countering terrorist threats is our highest priority, and we will continue to work to stem the flow of foreign fighters abroad and bring justice to those who attempt to provide material support to foreign terror organizations. I would like to thank the FBI and our Joint Terrorism Task Force partners for all that they do to keep our communities safe.”
“The men and women of FBI Dallas along with our local, state, and federal partners will continue to work diligently against homegrown violent extremists who provide support to any foreign terrorist organization,” said FBI Special Agent in Charge Jackson. “As threats are uncovered to the community we serve, the FBI and its partners must continue to ensure we are vigilant and determined to prevent any harm to this great nation.”
As set forth in the complaint, Sewell recruited an individual, identified in the complaint as coconspirator 1, to join LeT, a designated foreign terrorist organization. Sewell met the coconspirator online and encouraged him to join LeT.
Sewell provided the coconspirator with contact information for an individual who he believed could facilitate the coconspirator’s travel to join the organization. Unbeknownst to Sewell and the coconspirator, the facilitator was an undercover FBI agent.
Sewell coached the coconspirator about what to say to convince the facilitator that he was sincere in his desire to fight for LeT. Sewell also contacted the facilitator to vouch for the coconspirator’s authenticity. Sewell told both the coconspirator and the facilitator that he would kill the coconspirator if he turned out to be a spy.
The coconspirator made contact with the facilitator and made arrangements with the facilitator to travel to Pakistan to join LeT.
The FBI and its Joint Terrorism Task Force members; including the Arlington Police Department, the Fort Worth Police Department, the Tarrant County Sheriff’s Office, the Naval Criminal Investigation Service, the Department of Homeland Security, and the Texas Department of Public Safety; investigated the case.
New York Man Arrested for Attempting and Conspiring to Provide Material Support to Terrorist OrganizationRead the Press Release
A New York man was charged today with attempting and conspiring to provide material support to Lashkar e-Tayyiba (“LeT”), a Pakistan-based designated foreign terrorist organization responsible for multiple high-profile attacks, including the infamous Mumbai attacks in Nov. 2008. Assistant Attorney General for the National Security Division John C. Demers, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, the Assistant Director-in-Charge William F. Sweeney of the FBI New York Field Office and Commissioner James P. O’Neill of the Police Department for the City of New York (NYPD) made the announcement.
Jesus Wilfredo Encarnacion, a.k.a. “Jihadistsoldgier,” “Jihadinhear,” “Jihadinheart,” “Lionofthegood,” was arrested last night at John F. Kennedy International Airport (JFK Airport) in Queens, New York. Encarnacion is expected to be presented later today before Magistrate Judge Henry B. Pitman in Manhattan federal court.
“Encarnacion allegedly attempted to travel to Pakistan to join a foreign terrorist organization and conspired with another individual to provide that organization with material support,” said Assistant Attorney General Demers. “The National Security Division is committed to identifying and holding accountable those who seek to join and support designated foreign terrorist organizations.”
“As alleged, Jesus Encarnacion, a Manhattan man, plotted to travel to Pakistan to join and train with the terrorist organization Lashkar e-Tayyiba, which is infamous around the world for perpetrating the lethal 2008 Mumbai terror attacks and other atrocities,” said U.S. Attorney Berman. “The excellent work of the FBI and NYPD stopped Encarnacion’s alleged plan to support this deadly terrorist organization before he took flight, and now he will face federal terrorism charges.”
“As alleged, not only did Mr. Encarnacion express a desire to execute and behead people, he scheduled travel and almost boarded a plane so he could go learn how to become a terrorist,” FBI Assistant Director-in-Charge Sweeney Jr. “These organizations are using the internet and social media to appeal to the most barbaric impulses in people, and train them to kill. The FBI New York Joint Terrorism Task Force will continue to do all it can to stop these alleged criminals before innocent people are killed.”
“As alleged, Jesus Encarnacion had expressed his desire to commit a terrorist attack while living in New York City and never abandoned those plans,” said NYPD Police Commissioner O’Neill. “Allegedly, one of his stated motives for traveling overseas was to get the training and experience he believed he needed to someday return to the United States and carry out attacks. I want to commend the FBI Agents, NYPD Detectives and representatives of 54 other agencies that make up the Joint Terrorism Task Force for the investigation that led to this arrest.”
As alleged in the criminal Complaint,[1] filed today in Manhattan federal court:
In Nov. 2018, Encarnacion expressed his desire to join a terrorist group in an online group chat, where he met another individual (CC-1). CC-1 introduced Encarnacion to an individual who, unbeknownst to CC-1 or Encarnacion, was in fact an undercover FBI employee (UC-1). Encarnacion repeatedly expressed, in the course of recorded communications through a social media service with CC-1 and through an encrypted messaging service with UC-1, his allegiance to and support for LeT, which, since approximately 2001, has been designated as a Foreign Terrorist Organization by the United States Secretary of State.
Over the past several months, Encarnacion has discussed his desire and plans to join LeT overseas so that he could receive training and participate in violent acts of terrorism. For example, Encarnacion told UC-1 that he was “ready to kill and die in the name of Allah” and sought UC-1’s assistance to help Encarnacion travel to abroad to serve as an “executioner” for LeT, stating, “I want to execute. I want to behead. Shoot.” Encarnacion further stated that he aspired to commit terrorist attacks (“a bombing and shooting”) in the United States, but lacked “guidance” and “guns” to do so.
During the months that followed, Encarnacion and UC-1 agreed on a plan that Encarnacion believed would allow him to join LeT in Pakistan. Encarnacion told UC-1 that he had made arrangements to travel to a particular city in Europe (the “European City”), as the first step of traveling to Pakistan to join LeT. Encarnacion purchased an airline ticket for a flight scheduled to depart on Feb. 7, 2019, from JFK Airport, to the European City. On Feb. 7, Encarnacion traveled to JFK Airport, where he was arrested by the FBI after he attempted to board that flight.
* * *
Encarnacion, 29, of Manhattan, is charged with one count of attempting to provide material support to a designated foreign terrorist organization and one count of conspiring to provide material support to a designated foreign terrorist organization, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Demers and Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of agents from the FBI, detectives from the NYPD, and officers from numerous other agencies, including U.S. Customs and Border Protection, which assisted significantly in this case.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys David W. Denton Jr. and Kimberly J. Ravener are prosecuting with the assistance of Bridget Behling and Alexandra Hughes of the National Security Division.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below are only allegations, and every fact described should be treated as an allegation.
Former Virginia Federal Employee Sentenced to More Than 17 Years in Prison for Producing Child PornographyRead the Press Release
A Woodbridge, Virginia man was sentenced today to 210 months in prison followed by 10 years of supervised release for producing 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.
David Edward De Vere, 53, a former Equal Employment Specialist at the U.S. Patent and Trademark Office, pleaded guilty on Sept. 27, 2018 before U.S. District Judge Liam O’Grady of the Eastern District of Virginia to production of child pornography.
According to admissions made in connection with his guilty plea, De Vere met and began exchanging sexually explicit messages online with a 16-year-old minor living in Colorado in March 2017. During the course of these communications, De Vere induced the minor to take and send him multiple images of the minor engaging in sexually explicit conduct. De Vere also encouraged another adult with access to the minor in Colorado to sexually abuse the minor, and then traveled to Colorado in April 2017 in an unsuccessful attempt to sexually abuse the minor himself.
The case is being investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is comprised of agents of the FBI, U.S. Marshals Service, 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 Attorney William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Kellen S. Dwyer 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.
Department of Justice Positions Prevail in Two Federal Religious Liberty LawsuitsRead the Press Release
Two federal courts handed down decisions this week protecting religious liberty and agreeing with the positions of the Department of Justice in those cases. In the first case, the United States Court of Appeals for the Fourth Circuit ruled that a federal trial court had improperly dismissed a suit by a small African Christian congregation under the Religious Land Use and Institutionalized Persons Act (RLUIPA). The congregation alleges that Baltimore County, Maryland, improperly denied the congregation zoning approval for a new church. In the second case, the United States District Court for the District of Iowa ruled that the University of Iowa violated the First Amendment rights of a student group when the University de-registered the group for requiring its student leaders to adhere to the group’s religious beliefs, while not applying that same requirement to other student groups.
“The Department of Justice is committed to protecting the religious, associational, and expressive freedoms enshrined in federal law,” said Principal Deputy Associate Attorney General Jesse Panuccio. “We are pleased the courts agreed with the Department in these two cases, and we will continue to work to protect the rights of people of all faiths.”
In Jesus Christ is the Answer Ministries v. Baltimore County, Maryland, the appeals court ruled that a small congregation, many of whose members are African immigrants, could proceed with its claim that the county improperly denied approval to build a small church on a 1.2-acre lot. The congregation sued under RLUIPA, which protects places of worship from discriminatory or unjustifiably burdensome application of zoning regulations. The suit alleged that neighbors opposing the plan had made racially and ethnically charged statements about the worship style of the congregation including references to “dancing and hollering” as if they were “home back in Africa.” The suit also alleged that the church had made reasonable proposals and modifications to its plan and that their religious exercise was “substantially burdened” in violation of RLUIPA by the denial. The court of appeals agreed with the brief of the United States that both of these claims should be permitted to proceed.
In Business Leaders in Christ (BLinC) v. University of Iowa, the court agreed with the Statement of Interest filed by the United States, and ruled that the University of Iowa violated students’ rights of expressive association and free exercise of religion by de-registering a Christian student group. The university had de-registered the group because BLinC limits its leadership to persons who agree with its religious beliefs. The court found that the University applied the de-registration policy in a discriminatory manner by allowing other student groups to similarly limit their membership or leadership if the University felt the groups supported the University’s “education or social purposes.”
The Department of Justice announced the Religious Liberty Task Force in July, 2018. The Task Force helps the Department fully implement the religious liberty guidance by ensuring that all Justice Department components are upholding that guidance in the cases they bring and defend, the arguments they make in court, the policies and regulations they adopt, and how we conduct our operations.
More information about RLUIPA is available on the Place to Worship Initiative homepage, www.justice.gov/crt/placetoworship.
Justice Department Awards More Than $8.3 Million to Support California Victims of the Las Vegas Mass ShootingRead the Press Release
The Justice Department today announced that the Office of Justice Programs’ (OJP) Office for Victims of Crime (OVC) awarded more than $8.3 million in Antiterrorism and Emergency Assistance Program (AEAP) funding to aid Californians who are survivors of the Oct. 1, 2017, mass shooting in Las Vegas, Nevada. Deputy Attorney General Rod J. Rosenstein made the announcement in a speech today to law enforcement at the Los Angeles Crimefighters Leadership Conference.
Fifty-eight people were killed and more than 600 physically injured when a man opened fire on the Route 91 Harvest Festival, an open-air music venue, from a hotel room on the 32nd floor of the Mandalay Bay hotel and casino on the Las Vegas strip. When officers located the gunman and entered the room, he was found dead with self-inflicted wounds.
This new grant is being awarded to the California Victim Compensation and Government Claims Board, as 35 of the 58 murder victims and approximately 200 of those physically injured were from California. By some estimates, half of the concert attendees that evening were from the state of California. This incident of mass violence significantly impacted the state resources available to victims.
"The Las Vegas mass shooting was the deadliest in American history, and it inflicted unfathomable damage to hundreds of people, many of whom were visiting from California,” Deputy Attorney General Rod J. Rosenstein said. "While we cannot undo the evil that was done that day, the Department of Justice is doing its part to support first responders and survivors. We have already provided more than $19 million in funds for law enforcement and victims' services. Today we provide an additional $8.3 million to services for victims from California. We support them and all crime victims --and we will continue to do our part to help them heal."
The $8,353,884 in funding will provide supplemental crisis response and consequence management support services to help victims as they continue to heal and cope with probable re-traumatization. These services include supplemental crime victim compensation expenses; victim assistance, such as mental health and peer support groups; outreach to identify and contact victims, including a virtual victim resiliency center; and related expenses for support staff to provide these activities. The peer support groups will occur in multiple locations to provide easier access for victims.
In addition to this grant, in November 2018, the Justice Department awarded $16,735,720 to the state of Nevada, primarily for those not residing in California, to assist victims of this terrorist attack, including ticket holders, concert staff, vendors, witnesses, law enforcement personnel, and other first responders. The grant helped to support close family members, medical personnel, coroner’s staff, taxi drivers, and others who helped the concert attendees. In addition, it defrayed the costs of counseling and therapy, vocational rehabilitation, and trauma recovery for victims and emergency responders. Funds also assisted with legal aid and supplemented the massive outlays incurred by the Nevada victim compensation program.
In June 2018, the Department awarded over $2 million to support first responders in the aftermath of the shooting. In addition, in November 2018, the Justice Department announced a new $8.7 million grant to provide multi-disciplinary, scenario-based active shooter training to first responders across the country.
“The scale of loss and suffering endured by these victims and survivors is enormous, and the trauma will follow them the rest of their lives,” said Principal Deputy Assistant Attorney General Matt M. Dummermuth. “We hope that these resources will help sustain them as they walk the path from pain and grief to healing.”
AEAP is a non-competitive solicitation specifically created to provide supplemental emergency and longer-term victim support to jurisdictions where a criminal mass violence or domestic terrorism incident occurred. OVC awards funding once local and state authorities have determined the costs associated with responding and have submitted a request for assistance.
For more information about AEAP, please visit: https://www.ovc.gov/AEAP/
The Office of Justice Programs, led by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at: www.ojp.gov.
DOJ, ICE Recognize International Day of Zero Tolerance for Female Genital Mutilation/CuttingRead the Press Release
February 6 marks the International Day of Zero Tolerance for Female Genital Mutilation. The FBI, the Human Rights and Special Prosecutions Section (HRSP) of the Justice Department’s Criminal Division and U.S. Immigration and Customs Enforcement (ICE), all members of the Human Rights Violators and War Crimes Center (HRVWCC), join U.S. and foreign government partners, non-governmental organizations and local communities to call for the eradication of the practice.
Female genital mutilation/cutting (FGM/C) is a federal crime, and any involvement in committing this crime is a serious human rights violation, which may result in imprisonment and potential removal from the United States. Individuals suspected of FGM/C, including sending girls overseas to be cut, may be investigated by the HRVWCC and prosecuted accordingly.
The elimination of FGM/C has broad implications for the health and human rights of women and girls, as well as societies at large. This day serves as an opportunity to reflect on victims who have suffered from female genital mutilation/cutting, including many women and girls who have died or suffered lifelong health complications from the practice. The day also renews a global commitment to the health and well-being of all women, girls and communities by eliminating the practice.
In 2018, ICE expanded Operation Limelight USA, an outreach operation designed to educate travelers on the dangers and consequences of FGM/C, from one international airport to seven. U.S. officials with Operation Limelight USA spoke to 1300 travelers on 80 different flights from May 22 to July 2 at seven airports across the United States, while UK partners spoke to travelers at Heathrow Airport and train stations throughout the UK. In Aug. 2018, U.S. officials, including representatives from the FBI and ICE, were again joined by their partners in the United Kingdom to sign a proclamation signaling the nations’ commitment to preventing the practice.
“The FBI is committed to investigating human rights violations, including female genital mutilation/cutting (FGM),” said Unit Chief Maureen Schutz of the FBI’s Criminal Division. “We continue to work with our partners at U.S. Immigration and Customs Enforcement to protect the rights of young women and children and to bring justice to those who have violated them.”
“Female genital mutilation is a global issue and we rely on our domestic and international partners as we work to eliminate this practice. We continue to partner with the FBI, non-governmental organizations, and other government agencies to identify potential victims and find those who conduct female genital mutilation,” explained Unit Chief Mark Shaffer of ICE’s Homeland Security Investigations Human Rights Violators and War Crimes Center.
FGM/C prevalence is primarily concentrated in 30 countries in Africa, the Middle East, and Asia, but also occurs in parts of Western Europe, North America, Australia and New Zealand. It is global in scope and found in multiple geographies, religions, and socioeconomic classes.
Anyone who has information about an individual who is suspected of assisting in this crime is urged to call the toll-free ICE tip line at (866) 347-2423 or complete the ICE online tip form or the FBI online tip form. All are staffed around the clock, and tips may be provided anonymously.
- ICE Human Rights Violators and War Crimes Unit
- FBI International Human Rights Unit
For more information about the practice of female genital mutilation/cutting, view this Fact Sheet on FGM/C from the U.S. Department of State or visit the United Nations’ Zero Tolerance Day website.
Woman from Albuquerque Charged with Setting Fire to FBI PropertyRead the Press Release
ALBUQUERQUE –Josephine Gervais, 39, of Albuquerque, N.M., appeared in federal court today on a charge of malicious damage by fire to federal property.
According to court documents, Gervais committed the offense on January 31, 2019, by setting fire to a sign and vegetation outside the FBI office in Albuquerque. Albuquerque Fire and Rescue responded to the scene and put out the fire. Gervais fled the scene. Agents arrested her at her home later the same day.
Gervais faces from 5 to 20 years in prison if convicted. Allegations in indictments are only accusations. A criminal defendant is presumed innocent unless proven guilty beyond a reasonable doubt.
The Albuquerque office of the FBI investigated the case with assistance from Albuquerque Fire and Rescue. Assistant U.S. Attorney Howard R. Thomas is prosecuting the case.
South Florida Resident Convicted of $100 Million International Fraud Scheme that Led to Collapse of One of Puerto Rico’s Largest BanksRead the Press Release
A Key Biscayne, Florida resident was found guilty yesterday by a federal jury for his role in a $100 million scheme to defraud Westernbank of Puerto Rico (Westernbank); the losses triggered a series of events leading to Westernbank’s insolvency and ultimate collapse. The defendant was also convicted of a $3 million scheme to defraud Mellon United National Bank of Miami (Mellon Bank).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Special Agent in Charge Michael De Palma of IRS Criminal Investigation (IRS-CI) for Miami and Puerto Rico, Special Agent in Charge Iván J. Arvelo of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Juan and Special Agent in Charge Douglas A. Leff of the FBI’s San Juan, Puerto Rico Field Office made the announcement.
Jack Kachkar, 55, was convicted of eight counts of wire fraud affecting a financial institution after a three-week trial before U.S. District Judge Donald L. Graham of the Southern District of Florida. Kachkar is scheduled to be sentenced by Judge Graham on April 30, 2019.
“Jack Kachkar engineered a massive fraud scheme that led directly to the failure of a major Puerto Rican bank with more than 1,500 employees,” said Assistant Attorney General Benczkowski. “I want to commend the prosecutors and our law enforcement partners for their tireless work investigating this complex case and holding the defendant to account for these crimes.”
“Jack Kachkar’s fraud caused substantial harm to the 1,500 employees of Westernbank and the people of Puerto Rico,” said U.S. Attorney Fajardo Orshan. “The U.S. Attorney’s Office remains committed to the prosecution of those individuals and corporations that use Miami and other South Florida communities as their base to operate multinational fraud schemes.”
“Today’s verdict holds the defendant accountable for orchestrating fraudulent schemes that resulted in more than $100 million in losses to insured institutions and the FDIC as receiver,” said Inspector General Lerner. “The FDIC Office of Inspector General remains committed to investigate cases of deception and swindles that undermine the integrity of financial institutions, and we will continue to work with our law enforcement partners to bring to justice those who commit such offenses.”
“IRS Criminal Investigation will always pursue investigations like this where Mr. Kachkar, for his own personal benefit, orchestrated such a large scheme at the expense of one of Puerto Rico’s largest banks and its 1,500 employees,” said IRS-CI Special Agent in Charge Palma. “This investigation shows that the appearance of success can be a mask for a tangled financial web of lies, and we are proud to be part of the prosecution team that is bringing Mr. Kachkar to justice.”
“HSI San Juan will continue working with our local, state and federal partners to investigate and prosecute these types of cases as well as those involving violations to the more than 400 federal statutes that we investigate, “ said HSI Special Agent in Charge Arvelo. “This man was responsible for one of the largest fraud schemes ever recorded in the banking business in Puerto Rico and he will pay the consequences.”
“This defendant’s greed was powerful enough to destroy a bank, taking with it the jobs of approximately 1,500 hard working citizens of Puerto Rico,” said FBI Special Agent in Charge Leff. “The FBI thanks the US Attorney’s Office for sending an equally strong message that most fraud schemes will eventually lead to a prison cell.”
According to evidence presented at trial, from 2005 to 2007, Kachkar served as chairman and CEO of Inyx Inc., a publicly traded multinational pharmaceutical manufacturing company. Beginning in early 2005, Kachkar caused Westernbank to enter into a series of loan agreements in exchange for a security interest in the assets of Inyx and its subsidiaries. Under the loan agreements, Westernbank agreed to advance money based on Inyx’s customer invoices from “actual and bona fide” sales to Inyx customers, the evidence showed.
The trial evidence showed that Kachkar orchestrated a scheme to defraud Westernbank by causing numerous Inyx employees to make tens of millions of dollars worth of fake customer invoices purportedly payable by customers in the United Kingdom, Sweden and elsewhere. Kachkar caused these invoices to be presented to Westernbank as valid invoices. Kachkar made false and fraudulent representations to Westernbank executives about purported and imminent repayments from lenders in the United Kingdom, Norway, Libya and elsewhere in order to lull Westernbank into continuing to lend money to Inyx, the evidence showed. In fact, these lenders had not agreed to repay Westernbank’s loan. Kachkar made false and fraudulent representations to Westernbank executives that he had additional collateral, including purported mines in Mexico and Canada worth hundreds of millions of dollars, to induce Westernbank to lend additional funds, the evidence showed. In fact, this additional collateral was worth barely a fraction of that represented by Kachkar.
During the course of the scheme, Kachkar caused Westernbank to lend approximately $142 million, primarily based on false and fraudulent customer invoices. The evidence showed that the defendant diverted tens of millions of dollars for his own personal benefit, including for the purchase of, among other things, a private jet, luxury homes in Key Biscayne and Brickell, Miami, luxury cars, luxury hotel stays, and extravagant jewelry and clothing expenditures.
In or around June 2007, Westernbank declared the loan in default and ultimately suffered losses exceeding $100 million on the Inyx loans. According to trial evidence, these losses later triggered a series of events leading to Westernbank’s insolvency and ultimate collapse. At the time of its collapse, Westernbank had approximately 1,500 employees and was one of the largest banks in Puerto Rico.
In addition, the evidence showed, Kachkar knowingly deposited a $3 million check at Mellon Bank from the purported sale of his private jet. At the time of its deposit, based on the evidence presented, Kachkar knew that the check was worthless. In fact, the defendant agreed to sell his plane to a different buyer. After receiving a provisional credit for the check from Mellon Bank, the defendant wired out all of the provisional credit, including a $1 million wire to Kachkar’s personal account in Canada. Upon Mellon Bank’s request to reverse this $1 million wire, Kachkar refused to do so, resulting in at least a $1 million loss to Mellon Bank, the evidence showed.
This matter was investigated by the FDIC-OIG, IRS-CI, HSI and FBI. The Department of Justice’s Office of International Affairs provided significant support in the investigation. The case is being prosecuted by Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael N. Berger of the Southern District of Florida.
Man from Tohatchi, N.m. Pleads Guilty to Kidnapping and Sexual Abuse in Indian CountryRead the Press Release
ALBUQUERQUE – Ryan Thompson, 32, of Tohatchi, N.M., pleaded guilty today in federal court to charges of kidnapping and aggravated sexual abuse in Indian Country.
According to court documents, Thompson, an enrolled member of the Navajo Nation, kidnapped a woman and child from a gas station in Gallup on November 15, 2017. He drove them to another location and forced the woman to drink alcohol. When Thompson briefly left the area, the woman tried to escape by driving way. Thompson stopped her, pulled her out of the car, and beat her.
Thompson sexually abused the woman in front of the child. He also threatened to kill the woman and child. Thompson held them in his car overnight before taking them to a home where they stayed another night. On November 17, 2017, Thompson stole property from another residence. At that time, the woman drove away in her car with the child. She encountered police a short time later. Emergency responders took her to the hospital for treatment of her injuries, including a broken nose.
At sentencing, Thompson faces from 15 to 20 years in prison. The Gallup Resident Agency of the FBI investigated this case with assistance from the Navajo Nation Police Department. Assistant U.S. Attorney Joseph Spindle is prosecuting the case.
Justice Department Warns Taxpayers to Avoid Unscrupulous Tax Return PreparersRead the Press Release
As tax filing season begins, the Department of Justice warns taxpayers to beware of unscrupulous tax return preparers. The Department of Justice applies both civil and criminal tools at its disposal to shut down illegal tax return preparation activity. Taxpayers should always remain wary of tax return preparers who claim they can obtain larger refunds than others or engage in other unscrupulous practices.
While most tax return preparers are professional and honest, some prepare returns with false information in order to improperly boost a taxpayer’s refund or reduce their liability or to increase business and preparation fees. But, under the law, taxpayers are responsible for what is reported on their returns. When the IRS uncovers the falsehoods, the taxpayer can face penalties and interest and, if circumstances warrant, criminal prosecution.
“Fraudulent tax return preparers harm taxpayers, legitimate businesses, and the American public,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “The Justice Department is committed to working with our partners at the Internal Revenue Service to protect the law-abiding American public and the treasury by stopping this fraud.”
Every year, the Justice Department’s Tax Division, in collaboration with U.S. Attorney’s Offices, files dozens of civil actions throughout the United States seeking court orders to shut down tax return preparers who allegedly prepared false tax returns, and to punish dishonest tax return preparers for their fraudulent activities. When the evidence supports criminal enforcement action, the Department of Justice and U.S. Attorney’s offices pursue criminal prosecutions of tax return preparers.
In 2019, the Justice Department has already obtained several injunctions barring individuals from filing returns for others, and filed actions against numerous others:
- On Jan. 4, 2019, a federal court in Indianapolis, Indiana, permanently enjoined Antonio Chappell and G & A Tax Service LLC, from preparing federal tax returns for others. The court noted that the defendants had prepared tax returns with a wide range of scams, including falsifying reported income or losses to wrongfully increase or claim the Earned Income Tax Credit, fabricating education expenses to obtain the American Opportunity Credit for certain educational expenses; misrepresenting a taxpayer’s filing status; and reporting non-qualifying dependents to take advantage of the Additional Child Tax Credit.
- On Jan. 7, 2019, a federal court in Orlando, Florida, entered a preliminary injunction barring Erotida Harden, Michael Harden, Aida Cortes, Yahaira Claudio, Tamika Robenson, Natasha Williams, and Certified Taxes LLC, from acting as tax return preparers and directing them to immediately close all tax return preparation stores that they currently own directly or through any entity and not to reopen them without a court order.
- On Jan. 16, 2019, a federal court in Orlando, Florida, entered a preliminary injunction barring Marcgenson Marc, Tiana Character, LeNorris LaMoute, Dosuld Pierre, Shirleen Thales, Advanced Tax Services Inc., Genson Financial Group LLC, and Character Financial Solutions LLC from acting as tax return preparers and directing them to immediately close all tax return preparation stores that they currently own directly or through any entity and not to reopen them without a court order.
Examples of some recent criminal convictions obtained by the Tax Division include:
- On Jan. 28, 2019, a Minneapolis-based tax return preparer was sentenced to serve 121 months in prison for managing and directing a fraudulent return-preparation business, which prepared returns that reported false dependents, fake business income and losses, inflated deductions, inflated credits, and false filing statuses, in order to get customers inflated refunds.
- On Nov. 14, 2018, a Las Vegas, Nevada, tax return preparer was sentenced to 37 months in prison for aiding and assisting in the filing of false tax returns that included multiple false items, including charitable contributions, capital loss deductions, energy tax credits, and unreimbursed employee expenses—such as business meals and transportation expenses.
- On Sept. 13, 2018, a resident of Winton-Salem, North Carolina, who was licensed as an attorney in Georgia, was sentenced to 13 months in prison for aiding and assisting in the preparation of fraudulent tax returns.
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.
In addition, when selecting a tax return preparer:
- Be wary of tax return preparers who claim they can obtain larger refunds than others can.
- Avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of your refund into their financial accounts.
- Ensure you use a preparer with a preparer tax identification number (PTIN). Paid tax return preparers must have a PTIN to prepare all or substantially all of a tax return.
- Use a reputable tax professional, who enters their PTIN on your tax return, signs the tax return, and provides you a copy of the return (as required).
- Consider whether the individual or firm will be around for months or years after filing the return to answer questions about the preparation of the tax return.
- Never sign a blank tax form.
- Check the person’s credentials. Only attorneys, CPAs, and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collections, and appeals.
The IRS has some information on its website about selecting a return preparer and has launched a free directory of federal tax preparers and a list of tips for choosing a tax preparer.
Acting Attorney General and Secretary of Homeland Security Submit Joint Report on Impact of Foreign Interference on Election and Political/Campaign Infrastructure in 2018 ElectionsRead the Press Release
Acting Attorney General Matthew G. Whitaker and Secretary of Homeland Security Kirstjen M. Nielsen yesterday submitted a joint report to President Donald J. Trump evaluating the impact of any foreign interference on election infrastructure or the infrastructure of political organizations, including campaigns and candidates in the 2018-midterm elections.
The classified report was prepared pursuant to section 1(b) of Executive Order 13848, Imposing Certain Sanctions in the Event of Foreign Influence in a United States Election, which the President issued on Sept. 12, 2018.
Throughout the 2018 midterm election cycle, the Departments of Justice and Homeland Security worked closely with federal, state, local, and private sector partners, including all 50 states and more than 1400 local jurisdictions, to support efforts to secure election infrastructure and limit risk posed by foreign interference. Efforts to safeguard the 2020 elections are already underway.
Although the specific conclusions within the joint report must remain classified, the Departments have concluded there is no evidence to date that any identified activities of a foreign government or foreign agent had a material impact on the integrity or security of election infrastructure or political/campaign infrastructure used in the 2018 midterm elections for the United States Congress. This finding was informed by a report prepared by the Office of the Director of National Intelligence (ODNI) pursuant to the same Executive Order and is consistent with what was indicated by the U.S. government after the 2018 elections.
While the report remains classified, its findings will help drive future efforts to protect election and political/campaign infrastructure from foreign interference.
Acting Attorney General Matthew G. Whitaker Statement on the State of the Union AddressRead the Press Release
Acting Attorney General Matthew G. Whitaker issued the following statement in response to President Trump’s second State of the Union Address:
“President Trump’s speech presented a hopeful, optimistic vision for this country. An America with a secure southern border would be an America with less crime, less addiction, and better wages for working families. The Department of Justice is working every day to bring us closer to that kind of future by prosecuting criminals, interdicting drugs, and defending the rights of the American people in court. As we continue these efforts, I am hopeful that our elected leaders in Congress will come together on a bipartisan basis to support this law-and-order agenda for the good of the country.”
North Carolina Man Sentenced to 15 Years in Prison for Attempting and Conspiring to Provide Material Support to ISISRead the Press Release
Erick Jamal Hendricks, 38, of Charlotte, North Carolina, was sentenced to 15 years in prison for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS).
A jury in Akron, Ohio, convicted Hendricks last year of attempting and conspiring to provide material support to a designated foreign terrorist organization.
The sentence was announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Justin E. Herdman of the Northern District of Ohio and Special Agent in Charge Eric Smith of the FBI’s Cleveland Office.
According to court documents and trial testimony, Hendricks tried to recruit people to train together and conduct terrorist attacks in the United States on behalf of ISIS.
“Hendricks used social media to recruit others to plan and carry out attacks on our homeland in the name of ISIS, with the goal of creating a sleeper cell on our soil,” said Assistant Attorney General Demers. “Thanks to the collaborative efforts of law enforcement, Hendricks’ plan was thwarted, and with today’s sentence, he is being held accountable for his terrorist activities.”
“This defendant sought to create a cell of ISIS supporters, train those people and then launch attacks from inside the United States,” U.S. Attorney Herdman said. “This defendant posed a very real threat to the safety of our community and nation.”
“Erick Jamal Hendricks represents the significant online ISIS threat that we face daily – a US citizen that became radicalized online and attempted to recruit and train individuals to commit jihad, all while living in the United States,” said Special Agent in Charge Smith. “The FBI urges the public to report information regarding individuals pledging their allegiance to ISIS or other identified terrorist groups. The FBI is pleased that Hendricks was stopped before he was successful and now will spend a significant amount of time behind bars.”
According to court documents and trial testimony, Hendricks tried to recruit people to train together and conduct terrorist attacks in the United States on behalf of ISIS.
Amir Al-Ghazi was arrested in the Northern District of Ohio in June 2015 after attempting to purchase an AK-47 assault rifle and ammunition from an undercover law enforcement officer. Al-Ghazi had pledged allegiance to ISIS in social media and made statements expressing interest in conducting attacks in the U.S.
Hendricks had contacted Al-Ghazi over social media to recruit him in the spring of 2015. Hendricks allegedly told Al-Ghazi that he “needed people” and wanted to meet in person; that there were several “brothers” located in Texas and Mexico; that he was attempting to “get brothers to meet face to face;” and that he wanted “to get brothers to train together,” according to court documents and trial testimony
Al-Ghazi said Hendricks tested his religious knowledge and commitment, inquiring about his willingness to commit “jihad,” to die as a “martyr” and his desire to enter “jannah” (paradise). Al-Ghazi understood these statements to mean that Hendricks was recruiting people to train together for the purpose of conducting a terrorist attack in the U.S. and to see if Al-Ghazi was suitable for recruitment, according to the allegations. Al-Ghazi believed that Hendricks and the “brothers in Texas and Mexico” may have been responsible for a thwarted terrorist attack in Garland, Texas, on May 3, 2015, and therefore he decided to stay away from social media for a period following the attack to minimize detection by law enforcement.
Hendricks also communicated over social media with several other people, including an undercover FBI employee (UCE-1). Hendricks on April 16, 2015 instructed UCE-1 to download the document “GPS for the Ghuraba in the U.S.”, which included a section entitled “Final Advice” which advocated that “brothers and sisters” should not allow themselves to go to jail. This section also allegedly encouraged Muslims to die as a “Shaheed” (martyr), to “Boobie trap your homes,” to “lay in wait for them” and to “never leave your home without your AK-47 or M16.” Hendricks also directed UCE-1 to communicate online with other people and stated “It’s hard to sift through brothers;” “Allah chooses only the few;” and “Everyday I do this day in and day out,” according to court documents and trial testimony.
Hendricks told another person that his goal was to create a sleeper cell to be trained and housed at a secure compound that would conduct attacks in the U.S. He mentioned that potential targets included military members whose information had been released by ISIS and the woman who organized the “Draw Prophet Mohammad contest,” and he claimed to have 10 members signed up for his group, according court documents and trial testimony.
On April 23, 2015, Hendricks used social media to contact Elton Simpson, who, along with Nadir Hamid Soofi, was inspired by ISIS and launched the attack on the “First Annual Muhammad Art Exhibit and Contest” in Garland. Simpson and Soofi opened fire, wounding a security guard, before Garland police returned fire and killed both Simpson and Soofi. Hendricks also connected UCE-1 with Simpson via social media, communicated with UCE-1 about the contest in Garland, and directed UCE-1 to go to the contest. Hendricks said: “If you see that pig (meaning the organizer of the contest) make your ‘voice’ heard against her.” He also asked UCE-1 a series of questions related to security at the event, including: “How big is the gathering?” “How many ppl?” “How many police/agents?” “Do you see feds there?’ “Do you see snipers?” and “How many media?” Shortly thereafter, Simpson and Soofi committed the attack on the cartoon drawing contest.
Al-Ghazi is serving a 16-year prison sentence after pleading guilty to attempting to provide material support to a designated terrorist organization and being a felon in possession of firearms.
This case was investigated by the FBI’s offices in Cleveland; Columbia, South Carolina; Baltimore; and Charlotte, with assistance from the U.S. Attorney’s Offices in the District of Maryland, District of South Carolina and the Western District of North Carolina.
This case was prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Mark S. Bennett and Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
Former Jackson County Kentucky Treasurer Pleads Guilty to Identity Theft and Wire Fraud SchemeRead the Press Release
The former treasurer of Jackson County, Kentucky, pleaded guilty today to devising a scheme to defraud the Jackson County Fiscal Court of over $160,000 and to misusing the identity of a Jackson County employee to facilitate her theft.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan for the Eastern District of Kentucky, and Special Agent in Charge James (Robert) Brown Jr. of the FBI’s Louisville, Kentucky Field Division and Commissioner Richard Sanders of the Kentucky State Police, made the announcement.
Beth N. Sallee, 38, of McKee, Kentucky, pleaded guilty to one count of aggravated identity theft and to one count of wire fraud. Sallee will be sentenced on June 18, 2019 before U.S. District Court Judge Claria Horn Boom for the Eastern District of Kentucky.
According to admissions made in connection with her guilty plea, Sallee admitted that beginning in 2013, she misused her position to write a number of checks, totaling approximately $161,808.23, payable to herself without the approval of the Jackson County Fiscal Court. Sallee deposited these checks into her own personal checking account or for cash. The unauthorized checks drew on various Jackson County Fiscal Court accounts, including the Department of Emergency Services grant, payroll, and general fund accounts. To enable her scheme, Sallee forged the signature of other Jackson County employees on unauthorized checks without their knowledge or permission. She later attempted to conceal her scheme by removing pages of Jackson County financial documents, obscuring page numbers with white-out, and requesting the removal of check images from bank statements that were to be given to an auditor.
The investigation was conducted by the FBI and the Kentucky State Police. The case is being prosecuted by Trial Attorney Jessica C. Harvey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Andrew T. Boone of the Eastern District of Kentucky.
Department of Justice Files Amicus Brief Opposing Unfair Class Action “Coupon” SettlementRead the Press Release
The Department of Justice filed an amicus brief today with the Court of Appeals for the Sixth Circuit opposing a class action settlement that would provide consumers coupons worth only part of the price of a new pressure cooker, while awarding class counsel millions of dollars in attorney’s fees and costs.
Plaintiffs in the case, Chapman et al. v. Tristar Products, Inc., alleged that a pressure cooker sold by Tristar Products contained a defect that could cause hot liquid to “erupt” out of the appliance. A settlement reached between the parties would provide class members with a limited warranty extension and a non-transferrable $72.50 credit toward the purchase of certain Tristar products, to be ordered directly from the company. At current prices, the credit would pay for less than half the cost of a new pressure cooker from Tristar. Under the settlement, class members would release all claims relating to alleged defects in the pressure cookers, including claims for personal injury or property damage. Out of the estimated 3.2 million consumers who purchased the pressure cooker at issue, only about 13,300 claimed the coupons. The settlement, as approved by the district court, would award plaintiff’s counsel more than $2 million in attorney’s fees and costs.
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 filed a statement of interest in 2018 opposing the Chapman settlement in district court for the Northern District of Ohio. A coalition of 18 state attorneys general also filed a brief arguing that the settlement was unfair to consumers. The district court approved the settlement, which is now on appeal with the Sixth Circuit.
“Under the Class Action Fairness Act, the Department of Justice plays an important role in reviewing the reasonableness and adequacy of proposed class action settlements,” said Principal Deputy Associate Attorney General Jesse Panuccio. “Settlements such as this one raise serious fairness concerns by awarding class members only illusory relief while the lawyers bringing the lawsuit are awarded substantial fees. We will continue to scrutinize such proposed settlements to ensure they comport with the law and are fair, reasonable, and adequate.”
“Class action settlements that provide nothing of real value to consumers but award significant attorney’s fees to class counsel are precisely what Congress meant to curtail with the Class Action Fairness Act,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will continue to advocate on behalf of consumers when we see inappropriate class action settlements of this kind.”
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.
Readout of Acting Attorney General Matthew Whitaker's Trip to Bogotá, ColombiaRead the Press Release
From January 30 to February 1, 2019 in Bogotá, Colombia, Acting Attorney General Matthew Whitaker, along with Justice Department staff and U.S. Ambassador Kevin Whitaker, met with President Iván Duque Márquez, Colombian Attorney General Néstor Humberto Martínez Neira, Cabinet members, the Congressional Secretary General, and Colombian police officials to reaffirm the long-standing law enforcement relationship between the United States and Colombia and to strengthen judicial cooperation and goals for addressing transnational crime and supporting the return of democracy in Venezuela.
In separate meetings, Acting Attorney General Whitaker met with U.S. Department of Justice components stationed at the U.S. Embassy, to include the FBI, U.S. Drug Enforcement Administration (DEA) and the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. They provided briefings on the U.S. government’s law enforcement partnership with Colombia in dismantling and disrupting transnational criminal organizations including combatting Clan del Golfo, which was designated by the Department of Justice on Oct. 19, 2018 as one of the top transnational organized crime threats.
On February 1, Acting Attorney General Whitaker visited the General Santander National Police Academy and gave brief remarks at a wreath laying ceremony in honor of the brave young men and women who lost their lives or were wounded in the line of duty during the Jan. 17 suicide car bomb attack at the officer cadet school by the narco-terrorist group ELN. To approximately 100 Colombian National police officers, AG Whitaker said he was directing all U.S. Department of Justice components stationed at the U.S. Embassy, to include DEA, FBI, the U.S. Marshal’s Service and our DOJ Attaches, to make cases against ELN a top priority for the U.S. Department of Justice.
Acting AG Whitaker pledged that the Department of Justice, together with the Colombian National Police and Attorney General’s Office, "will pursue these cases with the same investigative skill and prosecutorial resources, with which we’ve successfully pursued the Clan del Golfo.”
Acting AG Whitaker was also provided a Congressional briefing at the Colombian Congress.
During the visit, American and Colombian officials discussed their shared mission of combatting narco-trafficking and narco-terrorism as well as illicit finances, foreign corruption, human trafficking, child sexual exploitation and arms trafficking. Both sides look forward to continuing to work together to achieve their shared objectives, as well as continued progress on these issues.
New Jersey Man Sentenced to Prison for Tax Evasion in Connection with Multimillion Dollar Art TransactionRead the Press Release
A New Jersey man was sentenced to 18 months in prison followed by three years of supervised release today for tax evasion in connection with over $1.2 million in income related to the proceeds from the sale of a purportedly original Caravaggio painting.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Acting Special Agent in Charge Matthew D. Line of IRS Criminal Investigation’s (IRS-CI) Nashville Field Office and Special Agent in Charge Troy Sowers of the FBI’s Knoxville Field Office made the announcement.
Brian Gimelson, 48, of Lawrenceville, New Jersey, was sentenced by U.S. District Judge Tanya Walton Pratt of the Southern District of Indiana. Judge Pratt also ordered Gimelson to pay $432,456 in restitution. Gimelson pleaded guilty on Sept. 12, 2018 to two counts of attempting to evade or defeat a tax.
According to admissions made in connection with his guilty plea, Gimelson earned a substantial income for his role in a transaction involving the sale of a purportedly original painting by the Italian painter Michelangelo Merisi, commonly known as Caravaggio, titled, “David With the Head of Goliath” (the Caravaggio Painting). Despite earning over $1.2 million in income on this transaction, Gimelson admittedly did not timely file income tax returns and he did not timely pay tax due and owing to the United States.
In order to conceal his income and evade the payment of his tax liabilities, Gimelson admittedly created a company, had his wife serve as managing member of the company, and used this company to facilitate the Caravaggio Painting transaction. Despite creating this company in his wife’s name, Gimelson admitted that he controlled the company and its bank accounts, including the fees Gimelson received for his role in the Caravaggio Painting transaction. Gimelson further admitted that he directed his wife to make frequent and substantial cash withdrawals on his behalf from company accounts, and Gimelson used company funds to purchase collectibles and precious metals, among other things.
At sentencing, the Court concluded that Gimelson’s tax evasion caused losses of $432,456 to the IRS.
The case was investigated by IRS-CI’s Nashville Field Office and the FBI’s Knoxville Field Office. The case is being prosecuted by Trial Attorneys Danny Nguyen and Caitlin Cottingham of the Criminal Division’s Fraud Section.
Justice Department Settles Immigration-Related Discrimination Claim Against Honda Aircraft Company LLCRead the Press Release
The Justice Department today reached a settlement agreement with Honda Aircraft Company LLC (Honda Aircraft), a wholly owned subsidiary of American Honda Motor Co. Inc., and subsidiary of Honda Motor Co. Ltd., that manufactures and sells business jet aircrafts. The settlement resolves a claim that Honda Aircraft, headquartered in Greensboro, North Carolina, refused to consider or hire certain work-authorized non-U.S. citizens because of their citizenship status, in violation of the Immigration and Nationality Act’s (INA) anti-discrimination provision.
The Department’s independent investigation determined that between August 2015 and December 2016, Honda Aircraft published at least 25 job postings that unlawfully required applicants to have a specific citizenship status to be considered for the vacancies. The Department concluded that the company’s unlawful practice of restricting job vacancies to U.S. citizens and in some cases, to U.S. citizens and lawful permanent residents (LPR), was based on a misunderstanding of the requirements under the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR). The discriminatory job postings were published on Honda Aircraft’s website and several third-party websites.
“The Department of Justice is committed to ensuring that employers do not unlawfully exclude non-U.S. citizens because of their citizenship status,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Employers who are subject to the ITAR or the EAR should carefully review their responsibilities under anti-discrimination statutes.”
The ITAR regulates specific exports of defense articles and services, and – absent State Department authorization – limits access to certain sensitive information to “U.S. persons,” which are defined as U.S. citizens, U.S. nationals, lawful permanent residents, asylees, and refugees. The EAR similarly regulates commercial goods and technology that could have military applications. The EAR limits access to export-controlled technology and information to “U.S. persons” absent authorization from the Department of Commerce. Neither the ITAR nor the EAR requires or authorizes employers to hire only U.S. citizens and LPRs. Employers that limit their hiring to U.S. citizens and/or LPRs without legal justification may violate the INA’s anti-discrimination provision.
Under the settlement agreement, Honda Aircraft will pay a civil penalty of $44,626, and remove all specific citizenship requirements from current and future job postings unless they are authorized by law. The agreement also requires certain employees to attend training on the INA’s anti-discrimination provision and ensure that trained personnel review future job advertisements.
The INA’s anti-discrimination provision prohibits employers from discriminating in hiring or recruiting or referring for a fee based on a person’s citizenship, immigration status, or national origin. In the absence of a legal basis (such as a law, regulation, or government contract that requires U.S. citizenship restrictions), employers, recruiters and referrers for a fee may not limit job opportunities or otherwise impose barriers to employment based on an individual’s citizenship or immigration status. By requiring a specific citizenship status as a condition of employment, Honda Aircraft’s job postings created discriminatory barriers for work-authorized individuals and unlawfully excluded U.S. nationals, asylees, refugees, and, in some cases, LPRs.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
More information on how employers can avoid unlawful citizenship status discrimination is available here. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Federal Jury Convicts Virginia Man of Producing Child PornographyRead the Press Release
A federal jury found Logan Roy McCauley, 25, of Hamilton, Virginia, guilty today of producing child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia made the announcement after the verdict was accepted by Senior U.S. District Judge T.S. Ellis III.
According to court records and evidence presented at trial, in November 2017, McCauley drove to West Virginia, picked up a minor he had met online, and drove the minor to his residence in Hamilton. Within hours of arriving, McCauley engaged in sexual intercourse with the minor for purposes of using a smartphone to record a portion of the sexual encounter. Soon after creating the video, McCauley sent an online message to another person admitting he had made the video that morning. The day after McCauley created the video, law enforcement arrived at McCauley’s residence. At this time, McCauley told law enforcement about the video, which was still on McCauley’s smart phone.
McCauley faces a maximum sentence of 30 years in prison and is subject to a 15-year mandatory minimum sentence. He will be sentenced on April 26, 2019 before Senior U.S. District Court Judge Ellis.
The case was investigated by the FBI and the Loudoun County Sheriff’s Office. It was prosecuted by Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorneys Alexander Berrang and Jay Prabhu of the Eastern District of Virginia.
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 the Child Exploitation and Obscenity Section (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.
Five Men, Two Businesses Charged with Illegally Importing Native American-Style Goods and Selling Them as AuthenticRead the Press Release
ALBUQUERQUE – Federal law enforcement officials have announced charges against five men and two businesses for conspiracy, smuggling goods into the United States, and misrepresentation of Indian produced goods and products. The charges, which are contained in a five-count indictment, arise from a multi-year scheme to import Native American-style jewelry, arts, and crafts into the United States from the Philippines and sell these goods to customers based on false representations that the merchandise was made by Native Americans.
According to the indictment, which was returned on December 19, 2018, Sterling Islands Inc., located in Albuquerque, N.M., imported Native American-style goods from a factory in the Philippines. These goods were not indelibly marked with the country of origin as required by customs law. The indictment alleges that Jawad Khalaf, 70, of Albuquerque, N.M., is the owner and president of Sterling Islands Inc. Nader Khalaf, 41, of Albuquerque, N.M., is a manager.
As alleged, Al-Zuni Global Jewelers, Inc., a wholesale business in Gallup, N.M., received these illegally imported goods and distributed them to customers. Nashat Khalaf, 71, of Gallup, N.M., is the owner and president of Al-Zuni Global Jewelers, Inc. Zaher Mostafa, 51, of Gallup, N.M., is a manager.
The indictment further charges that on or about August 3, 2012, Nader Khalaf sent an email message to the Philippines ordering Native American-style canteens. This email included a note from Mostafa requesting production. On or about November 24, 2014, Mostafa sold canteens to a customer that he represented as made by Navajo when the canteens were actually made in the Philippines.
As alleged, on or about July 23, 2013, Nader Khalaf processed an order from Taha Shawar, 47, of Breckenridge, Colo., for jewelry stamped “E.Y.” On August 5, 2014, Shawar sold a necklace stamped “E.Y.” to customers, claiming the necklace was made by an actual Navajo artist with those initials.
“Native Americans make tremendous contributions to the cultural and artistic heritage of our nation,” said New Mexico U.S. Attorney John C. Anderson. “This case demonstrates the Justice Department’s commitment to preserving and protecting the rich culture and heritage of New Mexico’s Pueblos and Tribes while promoting confidence in New Mexico’s native art market.”
The U.S. Fish and Wildlife Service is committed to safeguarding the rich culture, art and heritage of Native Americans," said Edward Grace, Acting Assistant Director of the Office of Law Enforcement for the U.S Fish and Wildlife Service. "We will continue to hold to account those who would attempt to sell fraudulent Indian art and craftwork in order to further their business dealings. We thank the U.S. Attorney's Office, Federal Bureau of Investigation, Homeland Security Investigations, U.S. Marshals Service, Drug Enforcement Administration, New Mexico Department of Game and Fish, and Indian Arts and Crafts Board for their assistance with this case."
“People from all over the country come to New Mexico to buy Native American jewelry, and they expect the real thing,” said Special Agent in Charge James C. Langenberg of the FBI Albuquerque Division. “When it's not, not only are they cheated, but so are the Native American artists who work hard to preserve their heritage. The FBI and our partners are committed to vigorously investigating and prosecuting the counterfeiters who would threaten one of our country's most precious cultural resources.”
“HSI special agents will continue to use their full authority to pursue the criminal organizations responsible for exploiting our tribal lands and cultural patrimony,” said Jack P. Staton, Special Agent in Charge of HSI El Paso. “HSI’s unique cross-border authority is vital to the success of these investigations and we will continue to work with our federal, tribal, state, and local law enforcement partners to protect the Native American heritage of the pueblos and tribes in New Mexico.”
“The Indian Arts and Crafts Board is charged by statute to protect federally recognized American Indian and Alaska Native artists and their creative work through the Indian Arts and Crafts Act, thereby promoting tribal economies and preserving American Indian and Alaska Native cultural traditions,” said Indian Arts and Crafts Board Director Meridith Stanton. “The Indian Arts and Crafts Board commends the Office of the U.S. Attorney in the District of New Mexico and the U.S. Fish and Wildlife Service Office of Law Enforcement for their outstanding work on the Al Zuni Indian Arts and Crafts Act investigation to protect the integrity and vitality of authentic Indian art. This is particularly important in New Mexico, which relies on the creation and sale of authentic Indian art and craftwork as an important tourist draw and economic engine.”
The defendants face a maximum of 20 years in prison if convicted of the conspiracy and smuggling offenses. They face up to 5 years in prison if convicted of misrepresentation of Indian produced goods and products.
Allegations in indictments are only accusations. Criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This investigation was led by the Office of Law Enforcement for the Southwest Region of the U.S. Fish and Wildlife Service with assistance from the Albuquerque Division of the FBI, Homeland Security Investigations, the Indian Arts and Crafts Board, the Drug Enforcement Administration, the U.S. Marshals Service, and the New Mexico Department of Game and Fish. Assistant U.S. Attorneys Sean J. Sullivan, Kristopher N. Houghton, and Brandon L. Fyffe are prosecuted the case.
Arvada, Colorado Businesswoman Sentenced to Prison for Filing False Corporate Income Tax ReturnRead the Press Release
Marlene Seo was sentenced today in Denver to one year and one day in prison for making and subscribing a false corporate income tax return, announced Principal Deputy Assistant Attorney Richard E. Zuckerman, head of the Justice Department’s Tax Division.
According to court documents, Seo owned and operated the National Martial Arts Academy (NMAA). From 2011 through 2013, she directed that income due to NMAA to be deposited into certain bank accounts, which she did not disclose to her bookkeeper and accountants. As a result, Seo caused the 2011, 2012 and 2013 federal corporate income tax returns for NMAA to underreport the business’s gross receipts by approximately $650,000.
Seo pleaded guilty on October 29, 2018, to signing and filing NMAA’s false 2012 income tax return. In addition to the prison term, Seo was ordered to serve one year of supervised release and to pay restitution to the Internal Revenue Service (IRS) in the amount of $238,350.70 and a special assessment of $100.
Principal Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Anahi Cortada and Lisa L. Bellamy of the Tax Division, who prosecuted the case.
Two Men Convicted for Roles in Multimillion Dollar Investment Fraud SchemeRead the Press Release
A federal jury in Charlotte, North Carolina found two men guilty yesterday for their roles in a five-year multi-million dollar high-yield investment fraud, the Justice Department announced today.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray of the Western District of North Carolina and Inspector in Charge David McGinnis of the U.S. Postal Inspection Service’s Charlotte Division, made the announcement.
Robert Leslie Stencil, 61, of Charlotte, North Carolina, and Michael Allen Duke, 50, of Richardson, Texas, were each convicted of one count of conspiracy to commit mail and wire fraud, following a three-week trial. In addition, Stencil was convicted of 13 counts of mail fraud, 13 counts of wire fraud and four counts of money laundering. Duke was also convicted of three counts of mail fraud, one count of wire fraud and one count of money laundering. Sentencing before U.S. District Judge Max O. Cogburn Jr. of the Western District of North Carolina, who presided over the trial, has not yet been scheduled.
“Robert Stencil and Michael Duke shamelessly stole millions of dollars from unwitting investors, including the elderly, to line their own pockets,” said Assistant Attorney General Benczkowski. “These convictions hopefully provide some consolation to the many innocent victims of this criminal scheme.”
According to the evidence presented at trial, from 2012 through 2016, Stencil, Duke and their co-conspirators sold millions of dollars of worthless stock in a sham company named Niyato Industries Inc. (“Niyato”). Stencil played the role of Niyato’s Chief Executive Officer. Duke was Stencil’s top salesperson. Together with their co-conspirators, Stencil and Duke portrayed Niyato as a leader in its field, manufacturing electric vehicles and converting gasoline vehicles to run on compressed natural gas. Stencil, Duke and their co-conspirators told victims that Niyato was run by a team of high-profile executives, and that Niyato had patented technology, state-of-the-art facilities, and valuable contracts. Further, they told victims that Niyato would use 97 percent of the money it raised selling stock to grow its business and expand operations. Stencil, Duke and their co-conspirators used high-pressure tactics when pitching Niyato stock to victims. Among other things, they sold victims on the opportunity to get in on the ground floor, offering them a portion of a supposedly limited supply of pre-IPO stock at $.50 per share and promising them a 10- to 16-fold return when Niyato went public. From 2012 to 2016, Stencil, Duke and their co-conspirators repeatedly told victims that an IPO was imminent.
In reality, the evidence showed that Niyato had no patents, facilities, products, or plans to commence an IPO. Niyato’s true business was the sale of worthless stock. Stencil, Duke and their co-conspirators used nearly all of the money raised by selling Niyato stock for their own personal benefit, with Stencil paying salespeople – like Duke – half or nearly half of the money they solicited from each investor on behalf of Niyato. Moreover, Stencil used Niyato’s bank account as his own personal piggybank. The evidence further established that Stencil, Duke and their co-conspirators sold approximately $2.8 million in stock to around 140 victims, many of whom were elderly. Duke was Stencil’s top salesperson, selling over $1.4 million of worthless Niyato stock to around 70 victims. For his role in the fraudulent scheme, Duke received over $700,000.
Four other defendants pleaded guilty and are awaiting sentencing, including Nicholas Fleming, 63, of Northridge, California; Martin Delaine Lewis, 52, of Frisco, Texas; Paula Saccomanno, 61, of Boca Raton, Florida; and Dennis Swerdlen, 64, of Boca Raton, Florida. Kristian F. Sierp, 47, of Costa Rica, pleaded guilty on Feb. 2, 2017 and received a sentence of 102 months in prison in connection with his role in this case and in an unrelated Costa Rican sweepstakes fraud. Daniel Thomas Broyles, Sr., 61, of Beverly Hills, California, was also charged and remains a fugitive. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. Postal Inspection Service. Fraud Section Trial Attorneys William Bowne and Christopher Fenton are prosecuting the case.
Superseding Indictment Adds Four Defendants to Gypsy Joker Motorcycle Club Racketeering ConspiracyRead the Press Release
A federal grand jury in the District of Oregon has returned a five-count superseding indictment charging six members and associates of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) for racketeering conspiracy, kidnapping and murder.
The superseding indictment was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Billy J. Williams for the District of Oregon, Special Agent in Charge Darek Pleasants of the Bureau of Alcohol, Tobacco, Firearms, and Explosive’s (ATF) Seattle Field Division and Chief of Police Danielle Outlaw of the Portland Police Bureau (PPB).
“According to the indictment, since at least 2003, the Gypsy Jokers have engaged in a wide range of crimes, including kidnapping, murder, drug dealing, robbery, extortion, and witness tampering,” said Assistant Attorney General Benczkowski. “Thanks to the efforts of ATF, the Portland Police Department, and federal prosecutors, we will work hard to hold accountable the leaders and members of this brutal and highly organized gang for their alleged crimes.”
“Kenneth Hause is the leader of a criminal organization that, through its many chapters and support clubs, has sowed violence and intimidation throughout the Pacific Northwest,” said U.S. Attorney Williams. “This is an organization whose members and associates pride themselves on living outside the law and use kidnapping, assault, murder and other forms of violence to extend and maintain their power. Kenneth Hause and his co-defendants will soon have their day in court and will face the consequences of their crimes.”
“This is a continuation of ATF’s operations against the Gypsy Joker Outlaw Motorcycle Club for racketeering, kidnapping and murder,” said ATF Special Agent in Charge Pleasants. “As president of a criminal organization, Mr. Hause put the community at risk and showed contempt for law and order. It is among ATF’s core commitments to protect the public from violent criminals such as these Gypsy Jokers.”
“The Portland Police Bureau is proud to be a part of this cooperative effort,” said Chief Outlaw. “Violent crime deeply affects our community. By working with our partners, we can utilize a collective group of strategies and tactics to investigate and apprehend those responsible for committing violent acts or profiting from people’s fear through extortion and intimidation.”
GJOMC National President Kenneth Earl Hause, 61, of Aumsville, Oregon; Mark Leroy Dencklau, 58, of Woodburn, Oregon; Earl Deverle Fisher, 48, of Gresham, Oregon; Ryan Anthony Negrinelli, 36, of Gresham; Joseph Duane Folkerts, 61, of Battleground, Washington; and a sixth unnamed defendant are charged, as members and associates of the GJOMC, with conspiring to conduct and participate in the activities of a racketeering enterprise.
Additionally, Dencklau, Fisher, Negrinelli, Folkerts and the unnamed defendant are charged with murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death; and conspiracy to commit kidnapping, resulting in death for the June 30 to July 1, 2015 kidnapping and murder of Robert Huggins, a former GJOMC member and resident of southeast Portland, for the purpose of maintaining and increasing their positions in the GJOMC criminal enterprise.
According to the superseding indictment, the GJOMC preserves, promotes and protects its power, territory and profits through violence and intimidation and enriches its members through extortion, robbery and the distribution of narcotics. The organization is known for using fear through its members and associates as a tactic for establishing and maintaining its power. The GJOMC oversees several “support clubs” in Oregon and Washington, including the Road Brothers Northwest Motorcycle Club, Solutions Motorcycle Club, Northwest Veterans Motorcycle Club, High-Side Riders, and the Freedom Fellowship Motorcycle Club.
Dencklau, Fisher and Tiler Evan Pribbernow, 37, of Portland were first charged in a four-count indictment unsealed in July 2018. Pribbernow pleaded guilty to a single count of conspiring to conduct and participate in the activities of a racketeering enterprise on Nov. 7, 2018. Dencklau and Fisher are detained pending trial.
In addition to the criminal charges brought against the named defendants, the government is seeking forfeiture of a property located in Salem, Oregon used as a GJOMC clubhouse.
An indictment is only an accusation of a crime, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the PPB and ATF, with assistance from the U.S. Marshals Service; IRS Criminal Investigation; Clark County, Washington Sheriff’s Office; Oregon State Police, and the Oregon and Washington State Crime Labs. Trial Attorney Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Leah K. Bolstad and Steven T. Mygrant for the District of Oregon are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Philadelphia La Cosa Nostra Member and Associate Charged with Making and Collecting Extortionate LoansRead the Press Release
An indictment was unsealed today against an alleged member of the Philadelphia, Pennsylvania organized crime family of La Cosa Nostra (LCN) and his alleged associate. The indictment charges various crimes involving the making of extortionate loans, conspiracy, and collections of loans by extortionate means.
The charges were announced today by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania and Special Agent in Charge Michael Harpster of the FBI’s Philadelphia Field Division.
The defendants charged in the 15-count indictment are Philadelphia LCN Family member Philip Narducci, 56, and his associate James Gallo, 44.
All of the defendants were arrested today and will make initial court appearances in U.S. District Court in Philadelphia at 1:30 pm. EST.
According to the indictment, Narducci allegedly made usurious and extortionate loans involving large amounts of money to a borrower. As set forth in the indictment, when the borrower failed to make weekly interest payments, Narducci allegedly used physical violence through assault and threats of violence to force the borrower to repay the loans. The indictment also alleges that, at Narducci’s direction, Gallo collected weekly interest payments on the usurious loans from the borrower and used threats of violence to facilitate the collections.
Each charge of making extortionate extortions of credit, conspiracy to collect extensions of credit by extortionate means, and collections of extensions of credit by extortionate means making extortionate extensions of credit, carries a maximum penalty of 20 years in prison and a $250,000 fine.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section.
The case is being investigated by the FBI, the Pennsylvania State Police, and the Pennsylvania Office of the Attorney General.
An indictment is merely an accusation and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Los Angeles Dentist Pleads Guilty to Health Care Fraud Charges Stemming from False and Fraudulent BillingsRead the Press Release
A Los Angeles, California-based dentist pleaded guilty on Thursday to a March 2018 indictment charging him with health care fraud arising from his false and fraudulent billings for crowns and fillings, which were never provided to patients.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Assistant Director in Charge Nancy McNamara of the FBI’s Washington, D.C. Field Office and Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Field Office made the announcement.
Benjamin Rosenberg, D.D.S., 58, of Los Angeles, pleaded guilty to one count of health care fraud before U.S. District Judge John A. Kronstadt of the Central District of California. Sentencing will take place on May 23 before Judge Kronstadt.
As part of his guilty plea, Rosenberg admitted that he submitted and caused to be submitted approximately $3,853,931 in false and fraudulent claims to various insurance companies for dental care that Rosenberg knew had not been rendered. Rosenberg further admitted that he submitted these false and fraudulent claims to Metlife, Anthem, Cigna, Delta Dental, Guardian, LMCO-DHA, United Health, and United Concordia (the “carriers”), which caused the carriers to pay Rosenberg approximately $1,415,011.
This case was investigated by the FBI. Trial Attorney Emily Z. Culbertson of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and the U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in 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.
Justice Department Reaches Settlement with Selma Medical Associates Inc. to Resolve ADA ViolationsRead the Press Release
The Justice Department today reached a settlement agreement with Selma Medical Associates Inc. (Selma Medical), a privately owned medical facility located in Winchester, Virginia, that provides primary and specialty care to patients.
The settlement agreement resolves a complaint under Title III of the Americans with Disabilities Act (ADA) that Selma Medical refused to accept a prospective new patient for an appointment because he takes Suboxone, a medication used to treat opioid use disorder. The Justice Department’s investigation concluded that Selma Medical regularly turned away prospective new patients who lawfully take controlled substances to treat their medical conditions.
Under the agreement, Selma Medical will not deny services on the basis of disability, including opioid use disorder, or apply standards or criteria that screen out individuals with disabilities. The agreement also requires Selma Medical to adopt non-discrimination policies, train staff on its non-discrimination obligations, and report on compliance. Selma Medical will also pay $30,000 in damages to the complainant and a $10,000 civil penalty to the United States.
“This agreement ensures that people in recovery from an opioid use disorder do not face discriminatory barriers to health care services,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Unlawfully denying services to individuals with disabilities because of their medical conditions subjects these individuals to unwarranted stigma and harm, and will not be tolerated by the Department of Justice.”
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Judge Denies Bond for Defendant Charged in Renasant Bank RobberyRead the Press Release
ALBANY – The man charged with holding up an Albany bank at gunpoint has been denied bond today by a Federal Magistrate Judge, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Shataz Hampton, 25, of Albany is charged with one count of Bank Robbery and one count of Possession of a Firearm, along with co-defendant Kamilyah Whitlock, 25, of Albany. The two defendants are charged in the armed robbery of the Renasant Bank at 721 N. Westover Blvd., Albany, GA on November 6, 2017. The Honorable Thomas Langstaff, U.S. District Magistrate Court, detained Mr. Hampton on January 30, 2019 until trial. No date has been set.
“I am pleased the Court granted our motion to detain Mr. Hampton, a man alleged to have brandished a gun and robbed a bank in broad daylight, with innocent customers and employees inside,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Rest assured, we will prosecute those accused of violent acts to the fullest extent of the law, and we will continue to vigorously seek the highest level of punishment for people who commit the most egregious crimes.”
The case was investigated by the Albany Police Department and the FBI. Assistant U.S. Attorney Leah McEwen is prosecuting the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Department of Justice Recognizes Human Trafficking Prevention Month and Announces Update on Efforts to Combat this Violent CrimeRead the Press Release
In December 2018, President Trump proclaimed January 2019 as National Slavery and Human Trafficking Prevention Month, dedicating the month to raising national awareness of the issue of human trafficking and highlighting efforts to combat this violent crime. Over the last year, the Department of Justice fought human trafficking through investigating and prosecuting traffickers, dismantling transnational human trafficking networks, enhancing victim identification and protection of all victims of trafficking, and funding and providing domestic and international anti-trafficking programs.
"Human trafficking is a horrific crime against the human dignity of the victims, and it can have no place in our society," Acting Attorney General Matthew G. Whitaker said. "But the Department of Justice is taking action against the traffickers. In fiscal year 2018, the Department of Justice secured over 500 human trafficking convictions – an increase from the previous fiscal year. We also filed a record number of new cases. And in districts where our new Anti-Trafficking Coordination Teams are in place, we have ramped up the number of trafficking prosecutions. We have sent a clear message to traffickers that the Department of Justice will bring the full force of the law against them."
Investigating and Prosecuting Human Traffickers
In fiscal year 2018, the Justice Department initiated a total of 230 human trafficking prosecutions, charging 386 defendants and convicting a record 526 defendants. The Department continued its successful Anti-Trafficking Coordination Team (ACTeam) Initiative, working with partners in the Department of Homeland Security and the Department of Labor. In 2018, ACTeams saw significant prosecution results, including increases of 10 percent, 75 percent, and 106 percent, in cases filed, defendants charged, and defendants convicted.
Successful cases under ACTeam leadership include one of the largest sex trafficking prosecutions in U.S. history, in which the Justice Department convicted 36 defendants operating a sex trafficking scheme that exploited hundreds of Thai women in multiple states. Additionally, five members of a notorious international criminal organization, known as the Rendon-Reyes Sex Trafficking Organization, were sentenced to prison terms of 15 to 25 years. Prosecution resulted in dismantling of this organization, which forced young women and girls from Mexico and Central America into prostitution for over a decade.
Also in fiscal year 2018, the FBI initiated 649 human trafficking cases and arrested 2453 subjects. The FBI’s efforts contributed to 410 human trafficking convictions and 422 sentencings in this same period.
The Department’s Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute child sex traffickers and other individuals who sexually exploit children, as well as to identify and rescue victims. This collaborative effort yields powerful results, including, for example, five indictments and three superseding indictments charging a total of 19 defendants with sex trafficking offenses against children in the Southern District of New York.
Dismantling Transnational Human Trafficking Networks
The Department of Justice continues to lead the U.S. Mexico Bilateral Human Trafficking Enforcement Initiative in collaboration with DHS and Mexican law enforcement counterparts to combat human trafficking networks operating across the U.S.-Mexico border. The initiative has resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 170 defendants. The collaborative work of the initiative has enabled high-impact prosecutions have dismantled transnational trafficking networks through coordinated, bilateral enforcement actions to simultaneously apprehend associated traffickers in both the U.S. and Mexico.
The Justice Department also continues to target all individuals who contribute to sex trafficking, including online advertisers that facilitate the offense, such as Backpage.com. On April 5, 2018, several Backpage-related corporate entities, including Backpage.com, and Backpage’s co-founder and CEO Carl Ferrer pleaded guilty to federal charges and state charges in California and Texas for conspiring to facilitate prostitution and money laundering. On April 6, 2018, DOJ seized and shutdown Backpage.com in the U.S. and the 90+ other countries in which it operated.
Enhancing Human Trafficking Victim Identification and Protection
The Department of Justice continues to offer help to and pursue justice on behalf of the victims of this heinous crime. The FBI’s Victim Services Division deploys 183 Victim Specialists who provide direct assistance to federal victims of crime to include human trafficking victims. Victim Specialists provide hundreds of presentations a year educating thousands of participants on trafficking.
In fiscal year 2018, the Justice Department provided extensive training on best practices when investigating child sex trafficking cases. In January 2018, the Project Safe Childhood Investigating and Prosecuting the Prostitution of Children Seminar was held at the National Advocacy Center. The Department also sponsored the 2018 National Law Enforcement Training on Child Exploitation, held in Atlanta and attended by approximately 1,500 federal, state, local, and tribal personnel.
In 2018, the Executive Office for U.S. Attorneys (EOUSA), the Civil Rights Division’s Human Trafficking Prosecution Unit (HTPU), and the Child Exploitation and Obscenity Section (CEOS) published a quick reference guide entitled “Restitution for Human Trafficking Victims,” which will assist federal prosecutors in obtaining restitution for human trafficking victims. EOUSA also developed a “Toolkit” which provides information on practices, procedures, models, and forms employed in various U.S. Attorneys’ Offices that are helpful to establishing a pretrial coordination practice of obtaining restitution for victims.
As National Slavery and Human Trafficking Month draws to a close, the Department of Justice is committed to continuing its efforts to combat the heinous crime of human trafficking in 2019.
Alamo, N.m. Man Charged with Sexual Abuse in Indian CountryRead the Press Release
ALBUQUERQUE – Thomas Abeyta, 35, of Alamo, N.M., made an initial appearance in federal court today on charges of aggravated sexual abuse in Indian Country.
According to a criminal complaint, Abeyta physically assaulted the victim at a residence on January 25, 2019. Abeyta injected the victim with a substance and sexually abused her over the course of several hours. The victim later went to the hospital for treatment of her injuries. Hospital staff reported the matter to law enforcement. Investigators have not confirmed the nature of the substance Abeyta injected into the victim.
If convicted, Abeyta faces up to life in prison. Charges in criminal complaints are merely accusations. Defendants are presumed innocent unless found guilty in a court of law.
The Albuquerque office of the FBI investigated this case with assistance from the Navajo Nation Police Department. Assistant U.S. Attorney Frederick Mendenhall is prosecuting the case.
Virginia Man Sentenced to Prison for Receipt of Child PornographyRead the Press Release
An Alexandria, Virginia man was sentenced on Jan. 11 to five years in prison for receipt of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office.
On Oct. 5, 2018, Kerry Sipult, 51, pleaded guilty to one count of receipt of child pornography. He was sentenced by Senior District Judge Claude M. Hilton to serve 60 months in prison followed by five years of supervised release. According to the Information to which Sipult pleaded guilty and to other facts he admitted to in his plea agreement, between Aug. 1, 2014 and Oct. 22, 2014, Sipult used a peer to peer program to download and share child pornography. As part of the investigation, the FBI seized Sipult’s computer and other electronic storage devices and recovered over 4,000 child pornography images and/or videos.
The investigation was conducted by the FBI. Trial Attorney Ralph Paradiso of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia prosecuted the case.
Texas Man Sentenced to 35 Years in Prison for “Sextorting” Minors in Eight StatesRead the Press Release
A Texas man was sentenced on Jan. 9 to 420 months in prison, to be followed by a lifetime of supervised release, for producing child pornography in 2016 and committing a sex-related felony involving a minor while being required to register as a sex offender, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney John C. Milhiser of the Central District of Illinois.
Mark P. Barnwell, 36, of Whitehouse, Texas, pleaded guilty before U.S. District Court Judge Joe Billy McDade of the Central District of Illinois on Aug. 29, 2018, to one count of producing child pornography and one count of committing a sex-related felony involving a minor while being required to register as a sex offender.
According to admissions made in connection with his guilty plea, Barnwell, at the time a registered sex offender, exploited minors online through the use of false personas on Facebook. Barnwell controlled multiple female-presenting profiles on Facebook. Using these profiles, Barnwell contacted female Facebook profile users and advertised a modeling opportunity he claimed would pay up to thousands of dollars per photo shoot.
At Barnwell’s urging, the minors that accepted the offer then took and sent to him photographs that they believed were being produced for the purposes of a modeling portfolio. The minor victims believed they would be paid by cash, check, or direct deposit once they completed the modeling portfolio process. At Barnwell’s explicit direction, the photographs taken by the minors progressed from various stages of undress to sexually suggestive and/or sexually explicit photographs of themselves.
Once he obtained compromising images, Barnwell threatened to injure the minor victims’ reputations and embarrass them by posting their nude pictures online if they failed to comply with demands for additional images. In total, Barnwell used this scheme to obtain nude photographs from 43 minor victims located in nine judicial districts across eight states.
In addition to the material, including videos and images, relating to sexual exploitation of children discovered on Barnwell’s devices, law enforcement authorities also found multiple videos captured by Barnwell, including several where he filmed up women’s skirts in public or attempted to do so. Authorities additionally discovered a large number of videos where Barnwell surreptitiously filmed women using public bathrooms. The authorities also discovered what is believed to be the hidden camera he used to capture the videos.
The charges are the result of a joint investigation by the U.S. Secret Service, the Peoria Police Department, and the Peoria County Sheriff’s Office. Vital assistance was provided by the U.S. Attorneys’ offices for the Central District of California, Southern District of Mississippi, District of Nevada, Eastern District of Texas, Northern District of Texas, Western District of Washington, Northern District of Iowa, and Southern District of West Virginia. This case is being prosecuted by Assistant U.S. Attorneys Ronald Hanna and Katherine Legge of the Central District of Illinois and Trial Attorney William Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
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.
Terminix Branch Manager Sentenced for Illegally Applying Restricted-Use Pesticide to Multiple Residence in the U.S. Virgin IslandsRead the Press Release
Jose Rivera, 59, former Branch Manager of TERMINIX INTERNATIONAL USVI LLC (TERMINIX USVI), was sentenced on Jan. 17, 2019, to 12 months in prison for illegally applying fumigants containing methyl bromide in multiple residential locations in the U.S. Virgin Islands, the Department of Justice and the Environmental Protection Agency (EPA) announced today. Two of the applications were at the Sirenusa condominium resort complex on St. John where a family of four fell seriously ill in March 2015, after the unit below them was fumigated. In September 2018, Rivera pleaded guilty to four-count of the counts charged in an indictment charging violations of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) for application of a restricted-use pesticide in a manner inconsistent with its label.
According to the plea agreement, Rivera was certified as a pesticide applicator by the Virgin Islands Department of Planning and Natural Resources and received pesticide applicator training from the University of the Virgin Islands. Based on his training, Rivera knew that he was required to read the pesticide label and follow all instructions when using any pesticide. In short, the defendant was instructed that federal law requires applicators to follow the pesticide use instructions on the label. The label on methyl bromide states that its use is restricted to the location and manner on the label, and the label does not authorize application of methyl bromide in a residential unit. Rivera applied methyl bromide, a registered restricted-use pesticide, in a manner inconsistent with the use instructions on the label at the residences named in the counts of conviction.
In November, 2017, the companies TERMINIX LP and TERMINIX, USVI, Rivera’s employer, were sentenced for violations of FIFRA, based on their earlier guilty pleas. Terminix USVI, was sentenced to pay $4.6 million in fines and $1.2 million in restitution to the EPA for response and clean-up costs at the St. John resort. Terminix International Company LP was sentenced to pay a fine of $4.6 million and will perform community service related to training commercial pesticide applicators in fumigation practices and a separate health services training program.
In 1984, the EPA banned the indoor use of methyl bromide products. The few remaining uses are severely restricted and largely limited to commodity applications for quarantine and pre-shipment purposes. Pesticides containing methyl bromide in the U.S. are restricted-use due to their acute toxicity, meaning that they may only be applied by a certified applicator. Health effects of acute exposure to methyl bromide are serious and include central nervous system and respiratory system damage. Pesticides can be very toxic and it is critically important that they be used only as approved by EPA.
The case was investigated by EPA Criminal Investigation Division working cooperatively with the Virgins Islands government and, the Agency for Toxic Substances and Disease Registry.
Senior Litigation Counsel Howard P. Stewart of the Department of Justice, Environmental Crimes Section, and Assistant U.S. Attorney Kim L. Chisholm of the District of the Virgin Islands are prosecuting the case with assistance of Patricia C. Hick, EPA Region II Regional Criminal Enforcement Counsel.
St. Paul Police Officer Charged with Federal Civil Rights OffenseRead the Press Release
Brett Palkowitsch, 31, an officer with the St. Paul Police Department, was indicted on Jan. 16 by a federal grand jury in Minneapolis for using excessive force against an arrestee, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division and FBI Minneapolis Special Agent in Charge Jill Sanborn.
Today’s indictment charges Palkowitsch with a single count of deprivation of rights under color of law, in violation of 18 U.S.C. § 242. The indictment alleges that Palkowitsch used unreasonable force when he kicked arrestee F.B. repeatedly while F.B. was on the ground and in the grips of a police canine, resulting in bodily injury.
The indictment carries a maximum penalty of 10 years of imprisonment and a $250,000 fine. An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
This case was investigated by the Minneapolis Division of the FBI, and is being prosecuted by Trial Attorneys Christopher J. Perras and Zachary Dembo of the Justice Department’s Civil Rights Division.
South Texas Clinic Owner Sentenced to 30 Years in Prison for Her Role in $20 Million Medicare Fraud SchemeRead the Press Release
A clinic owner and operator was sentenced to 360 months in prison on Jan. 24 for her role in a scheme to defraud Medicare out of payments for medical services. Ann Shepherd was convicted at trial in the Southern District of Texas along with her co-defendants, Dr. John Ramirez and Yvette Nwoko.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Region, and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Ann Nwoko Shepherd, 62, of Houston, Texas was sentenced by U.S. District Judge David Hittner of the Southern District of Texas. Judge Hittner also ordered the defendant to pay $20.928 million in restitution and to forfeit $250,000.
According to evidence presented at trial, from in or around December 2011 to in or around August 2015, John Ramirez, M.D., a physician, Ann Shepherd and Yvette Nwoko conspired and schemed to defraud Medicare out of payments for medical services. Shepherd owned and operated Southwest Total Medical Inc., a purported medical clinic doing business as Amex Medical Clinic in Houston. Shepherd, along with Yvette Nwoko sold medical orders and other documents signed by Dr. Ramirez to home-health agencies in and around Houston. Dr. Ramirez falsely certified in these medical orders information about the patient’s medical condition and need for medical services. Co-conspirators at home-health agencies then used the false and fraudulent paperwork signed by Dr. Ramirez and sold by Ann Shepherd and Yvette Nwoko to bill to, and receive payment from, Medicare for medical services that were not medically necessary or not provided.
Ann Shepherd also caused Amex Medical Clinic to bill Medicare for purported physician services that were actually provided by an unlicensed practitioner, if at all.
In all, Ann Shepherd caused Medicare to pay approximately $20 million on false and fraudulent claims submitted during the charged conspiracy.
Dr. John Ramirez is expected to be sentenced on Jan. 29 and Yvette Nwoko is expected to be sentenced on April 18, before the Honorable David Hittner.
This case was investigated by the FBI, HHS-OIG and the Texas Attorney General’s MFCU. Trial Attorney Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tina Ansari of the Southern District of Texas are prosecuting the case.
The Criminal Division’s 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.
South Florida Pharmacist Convicted of Health Care Fraud for Role in $100 Million Compounding Pharmacy SchemeRead the Press Release
A federal jury found a South Florida pharmacist guilty of health care fraud for his role in a massive compounding pharmacy fraud scheme, which impacted private insurance companies, Medicare and TRICARE.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
After a four-day trial, Ademola O. Adebayo, 55, of Odessa, FL, was convicted on Jan. 10 of one count of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, and one count of conspiracy to commit money laundering. Sentencing has been scheduled for March 19, 2019 before U.S. District Judge Moreno of the Southern District of Florida, who presided over the trial.
According to evidence presented at trial, from 2012 to 2015, Adebayo and his co-conspirators engaged in a scheme to defraud private insurance companies, Medicare, and TRICARE by submitting false and fraudulent claims for compounded drugs, primarily pain and scar creams, and other prescription medications that were not medically necessary, never provided, or both. The evidence established that in his role as the pharmacist at A to Z Pharmacy, a now-defunct pharmacy located in New Port Richey, Florida, Adebayo conspired to submit or cause the submission of claims that often amounted to several thousands of dollars for a single tube of pain or scar cream. In 2014, when insurance companies discovered the fraud at A to Z Pharmacy and terminated their contracts with the pharmacy, Adebayo agreed to become the straw owner of Havana Pharmacy & Discount in Miami, which Adebayo and his co-conspirators used to continue the fraud, the evidence showed.
The evidence further established that Adebayo personally benefited from the fraud and received $1.5 million, which he used to purchase luxury vehicles, including a Ferrari, a Lamborghini, a Bentley, a Porsche and two Cadillacs, as well as a house in Land O Lakes, Florida, many of which were seized by the government.
Eight other defendants have pleaded guilty in this case. Nicholas Borgesano, 46, of New Port Richey, Florida, was sentenced to 15 years in prison for his role as the owner of A to Z Pharmacy and participation in fraud schemes that involved Havana Pharmacy, Medplus/New Life Pharmacy and Metropolitan Pharmacy, all of Miami; and Jaimy Pharmacy and Prestige Pharmacy, both of Hialeah, Florida.
In addition to Borgesano, the following defendants have previously been sentenced for their roles in the scheme:
- Scott P. Piccininni, 50, of Fort Lauderdale, Florida, sentenced to 51 months in prison;
- Bradley Sirkin, 56, of Boca Raton, Florida, sentenced to 46 months in prison;
- Peter B. Williams, 58, of New Port Richey, sentenced to 26 months in prison, to be served consecutively to a 60-month sentence of imprisonment he is serving as a result of his guilty plea to a separate indictment returned in the Southern District of Florida; and
- Wayne M. Kreisberg, 41, of Parkland, Florida, placed on probation for a term of five years, to be served consecutively to a sentence of probation he is serving as a result of his guilty plea to a separate indictment returned in the Middle District of Florida.
This case was investigated by the FBI with support from HHS-OIG and DCIS and 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 Southern District of Florida. The case was prosecuted by Trial Attorneys Timothy P. Loper and Aleza Remis of the Fraud Section.
The Criminal Division’s 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.
Seafood Processor Sentenced to 45 Months for Selling Foreign Crab Meat Falsely Labeled as Blue Crab from USARead the Press Release
On January 10, 2019, James R. Casey of Poquoson, Virginia, was sentenced by U.S. District Judge Raymond A. Jackson, in Norfolk, Virginia, to 45 months in prison and a $15,000 fine for his role in conspiring to falsely label millions of dollars’ worth of foreign crab meat as “Product of USA.”
A significant decline in Atlantic blue crab (Callinectes sapidus) harvests that began in 2010 made it increasingly expensive to purchase live Atlantic blue crab and increasingly difficult to profit from the labor-intensive process of picking meat from live-harvested blue crab. According to papers filed in federal court, Casey admitted that, because of this decline, he and his company could not and did not process sufficient quantities of Atlantic blue crab to meet customer demands. To make up the shortfall, Casey and his co-conspirators used foreign crab meat to fulfill customer orders. During the periods when the company did not process blue crab—which sometimes lasted three months—the co-conspirators purchased crab meat (not live crabs) from Indonesia, China, Thailand, Vietnam, and other foreign locales.
The crab meat from Indonesia, China, Thailand, and Vietnam included meat from Portunus pelagicus, Portunus haanii, and Ovalipes punctatus, which are all Indo-West Pacific species of crab that do not live in the continental waters of the United States. The company also purchased crab meat (not live crabs) from Central American sources, which did include Atlantic blue crab, Callinectes sapidus, but also included other species such as Callinectes bocourti, Callinectes bellicosis, Callinectes toxotes, and Callinectes arcuatus.
In his plea agreement, Casey—who was the owner and President of Casey’s Seafood Inc., a wholesale processor of crab meat and other seafood—admitted to substituting foreign crab meat for domestically harvested blue crab. Videos, which were recorded by Casey’s Seafood’s security camera, and which were filed with the court, show company employees removing foreign crab meat from cans and plastic bags, and repackaging the crab meat into plastic containers labeled “Product of USA.” In the filed papers, Casey admitted to directing his employees to substitute and falsely label more than 183 tons of foreign crab meat, which was then sold to grocery stores and independent retailers.
According to the documents filed with the court, Casey further admitted that part of the conspiracy was to purchase discounted foreign crab meat, some of which was referred to as “distressed” because it was approaching or beyond its posted “best used by” dates. Casey admitted to directing company employees to “re-condition” the “distressed” crab meat by re-pasteurizing it, and then packaging the “re-conditioned” meat into the company’s cups, which were labeled and sold as blue crab and “Product of USA.” Casey also directed employees to place labels with “Product of USA” on containers that concealed labels marked as “Product of China” and “Product of Brazil.”
This case was part of an ongoing effort by the Department of Commerce’s National Oceanic and Atmospheric Administration Office of Law Enforcement, in coordination with the Food and Drug Administration, Department of Homeland Security, the Virginia Marine Police, and the Department of Justice to detect, deter, and prosecute those engaged in the false labeling of crab meat. This prosecution is being handled by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of Virginia. The government is represented by Assistant United States Attorney Eric Hurt and Trial Attorney Gary N. Donner.
P.H. Glatfelter Company Agrees to Reimburse Government Costs and Assume Long-Term Responsibility for Massive Superfund Cleanup at Wisconsin’s Fox RiverRead the Press Release
Under a settlement reached with the U.S. Department of Justice’s Environment and Natural Resources Division and the U.S. Environmental Protection Agency, P.H. Glatfelter Company will pay $20.5 million for reimbursement of EPA past costs and natural resource damages and then reimburse all future government costs of overseeing one of the nation’s largest Superfund cleanup projects at Wisconsin’s Lower Fox River and Green Bay Site. Glatfelter also is agreeing to take on responsibility for long-term monitoring and maintenance activities required by EPA. Georgia-Pacific Consumer Products LP is joining this settlement and agreeing to minor adjustments to its commitments under prior settlements.
An enormous amount of cleanup and natural resource restoration work has already been done in Fox River and Green Bay under a set of partial settlements, an EPA administrative cleanup order, and court orders in a federal lawsuit brought by the United States and the State of Wisconsin. The total cleanup costs for the Fox River Site will exceed $1 billion. The cleanup work will reduce the risks to humans and wildlife posed by polychlorinated biphenyls (PCBs) in bottom sediment of the Fox River and Green Bay.
The cleanup remedy for the Fox River Site was jointly-selected by EPA and the Wisconsin Department of Natural Resources. The remedy will remove much of the PCB-containing sediment from the Fox River by dredging. In other portions of the River, contaminated sediment is being contained in place with specially-engineered caps. The dredging and capping will reduce PCB exposure and greatly diminish downstream migration of PCBs to Green Bay.
In 2010, the United States and Wisconsin sued NCR Corporation, Glatfelter, Georgia-Pacific and other parties in a Superfund lawsuit to require them to continue the ongoing cleanup at the Site and pay government costs and natural resource damages. The defendants in the government’s lawsuit included paper companies like Glatfelter and Georgia-Pacific that contaminated the sediment when they made and recycled a particular type of PCB-containing “carbonless” copy paper. NCR and its affiliates produced that paper with PCBs from the mid-1950s until 1971.
Under another settlement reached in 2017, NCR agreed to complete all remaining dredging and capping work at the Site. Today’s settlement requires Glatfelter and Georgia-Pacific to take responsibility for long-term tasks that will continue for many years after the dredging and cap installation is completed in 2019, including periodic monitoring of PCB levels in water and fish and maintenance of the sediment containment caps. This new settlement expands the companies’ obligations under earlier partial settlements and government orders, which already required at least $66 million in expenditures by Glatfelter and at least $154 million by Georgia-Pacific.
The proposed settlement is in the form of a consent decree that must be approved by the federal judge overseeing the legal proceedings over the Fox River Site. If approved, this settlement would end all Superfund litigation over the Site.
This settlement, lodged with the U.S. District Court for the Eastern District of Wisconsin on Jan. 3, 2019, will be subject to a 30-day public comment period after notice of the settlement is published in the Federal Register. To view the consent decree or to submit a comment, visit the department’s website: www.justice.gov/enrd/Consent_Decrees.html.
For more information on cleanup activities at the Lower Fox River and Green Bay Superfund Site, go to the Environmental Protection Agency’s website:
https://cumulis.epa.gov/supercpad/cursites/csitinfo.cfm?id=0507723
Oregon Man Sentenced to Life in Prison for Sexually Abusing Children at Orphanage in CambodiaRead the Press Release
On Jan. 18, defendant Daniel Stephen Johnson, 40, of Coos Bay, Oregon, was sentenced to life in federal prison for repeatedly sexually abusing children who lived at an orphanage he operated in Cambodia.
The sentencing was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Billy J. Williams for the District of Oregon.
In a jury trial ending on May 16, 2018, Johnson was convicted on six counts of engaging in illicit sexual conduct in a foreign place and one count each of travel with intent to engage in illicit sexual conduct and aggravated sexual assault with a child. He was sentenced to 30 years in prison on each count of illicit sexual conduct in a foreign place, 30 years for traveling with the intent to engage in illicit sexual conduct, and life in prison for aggravated sexual assault with children. The sentences for engaging in illicit sexual conduct in a foreign place will run consecutively.
According to court documents and information shared during trial, between November 2005 and his arrest in December 2013, Johnson systematically and repeatedly molested children who lived at an unlicensed orphanage he started and ran in Phnom Penh, Cambodia. Johnson funded the orphanage by soliciting donations from church groups in Oregon, California, Texas and elsewhere. Ten Cambodian victims—who ranged in age from seven to 18 years old at the time of abuse—have disclosed Johnson’s abuse or attempted abuse.
Victims described a pattern of molestation that includes, among other things, Johnson making them perform oral sex on him and anally raping them. Multiple victims said they were, on numerous occasions, awoken to Johnson abusing them. Following the abuse, Johnson would sometimes provide his impoverished victims with small amounts of money or food. On one occasion, Johnson gave a victim the equivalent of $2.50 in Cambodian currency.
In 2013, a warrant was issued for Johnson’s arrest on an unrelated case by officials in Lincoln County, Oregon. Local law enforcement officers worked with the FBI to locate Johnson overseas. The FBI in turn worked with the U.S. Department of State to revoke Johnson’s passport based on the Oregon warrant. Through the work of the FBI, Action Pour Les Enfants, a non-governmental organization dedicated to ending child sexual abuse and exploitation in Cambodia, and the Cambodian National Police (CNP), Johnson was located in Phnom Penh.
On Dec. 9, 2013, CNP arrested Johnson. Based on disclosures made by children at the orphanage, Cambodian officials charged Johnson and detained him pending trial. In May 2014, Johnson was convicted by a Cambodian judge of performing indecent acts on one or more children at the orphanage and sentenced to a year in prison. Following his release from prison, Johnson was escorted back to the United States by the FBI.
Based on the sexual-abuse allegations against him, the FBI undertook a lengthy investigation of Johnson. During the course of their investigation, agents interviewed more than a dozen children and adults who had resided at the orphanage. Many of the interviews were audio- and video-taped and, in several instances, conducted in Cambodia by trained child-forensic interviewers. Some victims were interviewed multiple times before disclosing Johnson’s abuse.
Johnson was indicted by a federal grand jury in Eugene, Oregon on Dec. 20, 2014 on one count of engaging in illicit sexual conduct in a foreign place. Seven additional charges were added by superseding indictment on May 17, 2017.
While in custody awaiting trial, Johnson made multiple efforts to tamper with witnesses and obstruct justice. Johnson contacted his victims online, encouraging them to lie and offering money and gifts. One message, sent via his relative’s Facebook account to an adult in Cambodia, discussed visiting a victim’s family and encouraging them to convince the victim to retract their statement, potentially in exchange for $10,000. Another message explains the need for a victim to say they were under duress and “pushed by police” to thumbprint a document.
This case was investigated by the FBI with the assistance of the Toledo, Oregon, Police Department. It was prosecuted by Trial Attorney Lauren E. Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Jeffrey S. Sweet and Ravi Sinha of the District of Oregon and Assistant U.S. Attorney Amy E. Potter assisted with the prosecution.
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 U.S. Department of Justice and 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.projectsafechildhood.gov.
Omega Protein Companies Agree to Pay $1 Million to Resolve Allegations They Misrepresented Compliance with Environmental Laws to Obtain a Federal LoanRead the Press Release
Omega Protein Corp. and Omega Protein, Inc. (collectively “Omega”) have agreed to pay $1 million to resolve allegations that Omega obtained a loan from the United States by falsely certifying compliance with federal environmental laws, the Department of Justice announced today. The matter was unsealed on Jan. 17, 2019.
Omega is based in Houston, Texas, and is a leading domestic producer of Omega-3 rich fish oil, protein-rich specialty fishmeal, and organic fish solubles for livestock and aquaculture feed manufacturers.
“This settlement demonstrates our continuing vigilance in protecting the integrity of federal programs and taxpayer dollars,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Companies will face appropriate consequences if they misrepresent their eligibility to participate in federal programs and divert resources from those who should receive federal support.”
“Businessmen and companies that lie to get their hands on taxpayer money will be held accountable for their actions,” said U.S. Attorney David C. Joseph. “When some people cheat, those who play by the rules are put at a disadvantage. This million dollar payment from Omega Protein to the U.S. Treasury is part of our ongoing effort to combat fraud and protect the taxpayer’s dollar.”
The settlement announced today resolves allegations that Omega violated the False Claims Act in March 2010 when it certified to the Department of Commerce that it was complying with federal environmental laws to obtain a $10 million loan. At the time Omega submitted the certification, it was knowingly violating the Clean Water Act (CWA). In 2013, Omega Protein, Inc. pled guilty to violations of the CWA between May 2008 and December 2010, by unlawfully discharging pollutants into U.S. waters and, between April 2009 and September 2010, by unlawfully discharging a harmful quantity of oil into U.S. waters. The criminal matter was United States v. Omega Protein Inc. No. 2:13-cr-00043-RAJ-TEM (E.D. Va.).
The civil settlement results from a lawsuit brought by Keland O. Harrison, a former employee of Omega, filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims, and share in any recovery. As part of today’s resolution, Mr. Harrison will receive $200,000 of the settlement proceeds.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Office for the Western District of Louisiana, and the United States Department of Commerce.
The civil case is captioned United States ex rel. Harrison v. Omega Protein Corp. and Omega Protein, Inc., Civil Action No.16-cv-00359 (W.D. La.). The claims resolved by the settlement, except as admitted in the criminal plea, are allegations only, and there has been no determination of liability.
Northrop Grumman Systems Corporation Agrees to Pay $5.2 Million to Settle Allegations of False Labor ChargesRead the Press Release
The Justice Department announced today that Northrop Grumman Systems Corporation (NGSC) has agreed to pay $5.2 million to resolve its alleged False Claims Act liability for falsely billing labor under contract with the United States Postal Service (USPS). NGSC, which is headquartered in Falls Church, Virginia, provides information and technology services to commercial and government customers, including the USPS.
“Those who do business with the government must do so fairly and honestly,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will seek appropriate remedies against government contractors who knowingly overcharge the government for their services.”
The settlement concerns the Enterprise Technology Services Contract (ETS Contract) between NGSC and USPS. The ETS Contract required NGSC to provide qualified labor and management services to augment information technology services at USPS data centers around the country. The ETS Contract began in 2009 through a predecessor entity, Northrop Grumman Information Technology Inc., which merged with NGSC in 2010.
Under the ETS Contract, NGSC billed USPS for personnel performing information and technology services using hourly rates established for each of more than 100 labor billing categories. The United States alleges that NGSC knowingly billed certain personnel working under the ETS Contract for which they did not have the education and/or experience identified by these categories.
“The U.S. Postal Service manages approximately 30,000 contract actions and spends more than $13 billion on contracted supplies and services each fiscal year,” said Steven Stuller, Acting Special Agent in Charge, U.S. Postal Service Office of Inspector General. “The Office of Inspector General supports the Postal Service by aggressively investigating allegations of misconduct within these contracts. In this instance, we worked hand-in-hand with the Department of Justice's Civil Division to help ensure a reasonable case-related resolution. We applaud the exceptional work by the investigative team and know it will have a positive impact on Postal Service operations.”
This matter was handled by the Civil Division’s Commercial Litigation Branch, the USPS Office of the Inspector General, and the USPS Office of General Counsel.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
New York Man Sentenced to More Than Four Years in Prison for Engaging in Extensive, Four-Year Cyberstalking Campaign Against Former GirlfriendRead the Press Release
A New York man was sentenced on Jan. 23 in U.S. District Court in the Southern District of New York to 50 months in prison for engaging in an extensive, four-year cyberstalking campaign that targeted a woman he dated for several months. The victim’s name is being withheld to protect her privacy.
Assistant Attorney Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Geoffrey S. Berman of the Southern District of New York made the announcement.
David Waldman, 50, of New York, New York, was sentenced by U.S. District Court Judge Katherine Polk Failla of the Southern District of New York, who also ordered him to serve three years of supervised release following his prison sentence. Waldman, a non-practicing lawyer, was initially arrested in June 2018 and has been detained since his arrest. In August 2018, he pleaded guilty to one count of cyberstalking.
According to admissions made in connection with his plea and evidence presented at sentencing, Waldman engaged in an extensive cyberstalking campaign targeting a woman he briefly dated. The campaign began in April 2014, shortly after Waldman and the victim ended their relationship, and continued intermittently until the date of Waldman’s arrest. Over the course of almost four years, Waldman sent the victim hundreds of text messages, voicemail messages, and e-mail messages, and made voluminous posts on a variety of online platforms, in which he falsely claimed, among other assertions, that she abused drugs, had been diagnosed with bipolar and narcissistic personality disorder, and fabricated claims that she had been a victim of child sexual abuse. Waldman also sent email messages to the victim’s employers, accusing her of being a “habitual drug user” and claiming that he would sue her for defamation, theft, illegal trespass, violating HIPAA, and engaging in other “illegal behaviors.”
Throughout the four-year campaign, Waldman also repeatedly threatened to rape, kidnap, torture, injure, and kill the victim, kill members of her family, as well as threatened to kill himself at her apartment. As recently as 2018, Waldman continued to surveil the victim online and acquired tools that could be used to injure her. During the search of Waldman’s apartment, agents found, on his kitchen counter, a large hunting knife, which was covered in a sheath. He had a smaller knife in his bedroom. Waldman also kept a bb gun in his closet and a lock-picking kit in his carrying bag. According to Waldman’s internet browser history, in 2018, Waldman tracked the victim’s whereabouts, including her running route, and researched telescopes, “pellet pistols,” “air rifles,” and other similar devices.
Over the course of Waldman’s cyberstalking campaign, the victim obtained multiple state court orders of protection against him. Waldman repeatedly violated these orders.
Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Nicholas Chiuchiolo of the Southern District of New York prosecuted the case.
Navy Captain Indicted on Charges of Obstruction of Justice and Other OffensesRead the Press Release
On Jan. 8, a federal grand jury sitting in the Middle District of Florida returned an indictment charging a U.S. Navy Captain with obstruction of justice, concealment, falsifying records, and false statements during the investigation of the death of a civilian at Naval Station Guantanamo Bay (“GTMO”) in Guantanamo Bay, Cuba.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division made the announcement.
Captain John Nettleton, 53, of Jacksonville, Florida, was charged with two counts of obstruction of justice related to his actions during the Navy’s investigation of the death of Christopher M. Tur, the Loss Prevention Safety Manager at GTMO’s Naval Exchange. Nettleton was also charged with one count of concealing information, two counts of falsifying records, and five counts of making false statements.
Tur, 42, was found drowned in the waters of Guantanamo Bay on Jan. 11, 2015. An autopsy revealed that Tur had suffered injuries prior to his drowning. At the time of Tur’s death, Nettleton was the Commanding Officer of GTMO.
According to the indictment, Tur confronted Nettleton at a party at the GTMO Officers’ Club on Jan. 9, 2015 with allegations that Nettleton and Tur’s spouse had engaged in an extramarital affair. Later that same evening, Tur went to Nettleton’s residence and a physical altercation ensued that left Tur injured. Tur was reported missing on Jan. 10, 2015 by other residents of GTMO. Despite knowing that Tur had been at his residence and injured during the altercation, Nettleton falsely informed his superior officers and other Navy personnel that Tur had last been seen at the Officer’s Club the night before, the indictment alleges. Nettleton also allegedly did not report that Tur had accused him of the extramarital affair, that Nettleton and Tur had engaged in a physical altercation at Nettleton’s residence, or that Tur had been injured. The indictment further alleges that Nettleton persisted in concealment and false statements as the search for Tur and then the investigation into the circumstances of his death continued.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Naval Criminal Investigative Service and is being prosecuted by Deputy Chief Todd Gee and Trial Attorney Peter Nothstein of the Criminal Division’s Public Integrity Section. Former Public Integrity Section Trial Attorney Mark Cipolletti also assisted in the investigation.
Missouri Woman Charged with Assaulting Infant Child While Living OverseasRead the Press Release
On Dec. 11, a federal grand jury in Kansas City, Missouri returned a six-count indictment against a woman for assaulting her infant child while living in military housing in Germany and for obstructing justice and making false statements during the course of the subsequent federal investigation.
Baillie Rachelle Dickenson, a.k.a. Baillie Hannah, 28, was residing in Kaiserslautern, Germany when the events set forth in the indictment occurred. She now lives in St. Joseph, Missouri. She is charged with two counts of assault resulting in serious bodily injury, two counts of obstruction of justice, and two counts of making a false statement to a federal officer. Dickenson was arrested on Jan. 2, and arraigned before Magistrate Judge Lajuana Counts on Jan. 9. Trial in this matter has been scheduled for the Sept. 23, 2019 jury trial docket.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Timothy A. Garrison of the Western District of Missouri, Major General David P. Glaser of the U.S. Army Criminal Investigation Command, and Darrin E. Jones, FBI Special Agent in Charge, Kansas City Division, made the announcement.
The indictment alleges that on or about March 12, 2016, Dickenson was living overseas in Kaiserslautern with her then-husband, Derreck Dickenson, who was an active-duty member of the U.S. Army. The couple resided in military housing with their two minor children, a daughter who was aged 16 months old and a son who was two months old at that time. While he was in her custody, Dickenson allegedly assaulted her son, causing serious injuries, including multiple fractures, eye injuries, and a serious brain injury. During the ensuing investigation of the matter, she obstructed justice by concealing a cell phone and influencing her husband’s statement to investigators, and made a series of false statements to investigators when they questioned her.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by the U.S. Army Criminal Investigation Command and the FBI. The prosecution is being handled by Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Teresa Moore of the Western District of Missouri.
Minnesota Tax Return Preparer Sentenced to More Than 10 Years in Prison for Leading a Multimillion Dollar IRS Fraud Scheme and Failing to Appear at SentencingRead the Press Release
A Minneapolis based tax return preparer was sentenced to serve 121 months in prison today for managing and directing a fraudulent return-preparation business, Primetime Tax Services Inc. (Primetime), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman.
Kenneth Mwase, who also fraudulently used the name Chatonda Khofi, 54, of St. Paul, Minnesota, pleaded guilty to one count of conspiracy to defraud the United States, one count of aggravated identity theft, and one count of failure to appear at sentencing.
In addition to the term of imprisonment, Chief U.S. District Judge John R. Tunheim also ordered Mwase to serve 3 years of supervised release, following his release from prison.
In April 2014, the defendant was charged in a seventy-count second superseding indictment, along with codefendants Ishmael Kosh, 39, of Philadelphia, Pennsylvania, Amadou Sangaray, 36, of New York, New York, and Francis Saygbay, 43, of Minneapolis, and David Mwangi, 47, of Arlington, Texas, for their involvement with Primetime, a tax preparation business with three storefronts in the Minneapolis area. Together with his co-defendants, Mwase prepared and filed with the Internal Revenue Service (IRS) over 2,000 fraudulent individual income tax returns on behalf of customers of Primetime for the years 2006, 2007 and 2008. Mwase and his co-defendants also prepared approximately 1,700 fraudulent state income tax returns filed with the state of Minnesota for those years.
In November 2014, Mwase plead guilty to one count of conspiracy to defraud the Government and one count of aggravated identity theft. As part of his plea agreement, Mwase admitted overseeing a conspiracy that caused a tax loss of over $2.5 million dollars. Mwase and co-defendants Kosh, Sangaray, and Saygbay established Primetime’s flagship location in Brooklyn Center, Minnesota, in late 2006. They then prepared tax returns in 2007, 2008, and 2009, for Primetime’s customers, which reported false dependents, fake business income and losses, inflated deductions, inflated credits, and false filing statuses, in order to get their customers inflated refunds. The defendants maintained control over their customers’ IRS refunds by instructing that those refunds be sent directly to Primetime. They then caused their preparation fee to be directly withdrawn from the refund. When a customer came to pick up their refund check or debit card, the defendants sometimes escorted that customer to a check cashing location or ATM and demanded additional cash.
Mwase was scheduled to be sentenced on August 18, 2016, following the two-week trial of co-defendants Kosh and Sangaray, which occurred in September 2015, and the guilty plea of co-defendant Saygbay, in November 2015. However, on August 7, 2016, he fled to South Africa, using a fake identity and a fraudulently-obtained Zimbabwean passport. In April 2017, Mwase was charged with one count of failure to appear for sentencing.
With the assistance of the United States Department of State, INTERPOL, and Zimbabwean and South African authorities, Mwase was arrested in South Africa in May 2018. Over the years, Mwase used multiple fake identities, including passing himself off as Chatonda Khofi, an individual born in Washington, D.C. to diplomats from Malawi. In October 2018, following an extradition request from the United States, Mwase was surrendered to the custody of the United States Marshals Service and returned to Minnesota to face sentencing. On November 16, 2018, Mwase pled guilty to the charge of failing to appear for sentencing. Mwase’s co-conspirators were previously sentenced to prison.
The case was investigated by special agents of IRS-Criminal Investigation and deputy marshals of the United States Marshals Service. It was prosecuted by Trial Attorneys Thomas W. Flynn and Arthur J. Ewenczyk, as well as former Trial Attorneys Dennis R. Kihm and Ryan R. Raybould, of the Tax Division who prosecuted the case. The Tax Division would like to thank the Minnesota Department of Revenue for their significant work in identifying the tax fraud and identity theft occurring at Primetime.
Miami Woman Sentenced to Prison for Role in $4.66 Million Medicare Fraud SchemeRead the Press Release
A woman from Miami, Florida was sentenced to 51 months in prison on Jan. 17 for her role in a $4.66 million health care fraud scheme involving several Miami-area home health agencies, including Sunshine Home Health Services Inc., Empire Home Health Agency Inc., Mildred & Marce Home Health Care Services Inc., and Nursing Care PRN Inc., which purported to provide home health services to Medicare patients.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Norma Zayas, 29, of Miami, was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida. Judge Martinez also ordered Zayas to pay $4,658,241.00 in restitution and to forfeit $186,650.50. Zayas pleaded guilty on Oct. 22, 2018 to one count of conspiracy to commit health care fraud.
As part of her guilty plea, Zayas admitted that from approximately January 2010 through approximately January 2014, she operated Sunshine, Empire, and Mildred & Marce Home Health and paid kickbacks to patient recruiters in return for the referral of Medicare beneficiaries, many of whom did not need or qualify for home health services. Zayas further admitted that she became the true owner of Nursing Care PRN, which she placed in the name of a nominee owner. She also paid kickbacks to patient recruiters who referred Medicare beneficiaries to Nursing Care PRN.
The defendant admitted that, as a result of false and fraudulent claims submitted as part of this conspiracy, Medicare made payments of nearly $4.66 million. Zayas was charged along with Margarita Palomino, 54, of Homestead, Florida in an indictment returned on June 7, 2018. Palomino was sentenced in December 2018 to a term of 78 months in prison and ordered to pay over $4.65 million in restitution, as well as to forfeit $186,650.50.
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 Southern District of Florida. Former Fraud Section Trial Attorney and current Assistant U.S. Attorney Leslie Wright prosecuted the case; the case is now being handled by Trial Attorney Emily Gurskis of the Fraud Section.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in 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.
Miami Woman Sentenced to More Than Three Years in Prison for Role in $1.36 Million Medicare Fraud SchemeRead the Press Release
A Miami, Florida woman was sentenced to 46 months in prison on Jan. 3 for her role in a $1.36 million health care fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Tania Gudin, 55, was sentenced by U.S. District Judge K. Michael Moore of the Southern District of Florida. Judge Moore also ordered Gudin to pay $1,366,317.59 in restitution and to forfeit $512,806.05. Gudin pleaded guilty on Oct. 23, 2018 to one count of conspiracy to commit health care fraud and wire fraud.
Gudin pleaded guilty to accepting kickbacks for recruiting and referring Medicare beneficiaries to five Miami-area businesses that claimed to provide home health care services: Maya Home Health Care Corp., Floridian Home Health Care Corp., Healthylife Home Care Inc., ACM Home Health Corp., and Humanity Home Health Inc. She also owned her own medical clinic, the New City Medical Center Inc., which she admittedly utilized to further the scheme, including by obtaining prescriptions for her recruited patients from medical professionals at New City.
As part of her guilty plea, Gudin admitted that from approximately July 2011 through approximately November 2014, she accepted kickbacks in return for the referral of Medicare beneficiaries, many of whom did not need or qualify for home health services, to serve as patients of the five agencies. Gudin caused Maya, Floridian, Healthylife, ACM, and Humanity to submit false claims to Medicare for home health services for the beneficiaries she recruited, which were medically unnecessary, not eligible for Medicare reimbursement and/or – either with Gudin’s knowledge or direction – never actually provided.
Gudin admitted that, as a result of false and fraudulent claims submitted as part of this conspiracy, Medicare made payments of at least $1.36 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 Southern District of Florida. Former Fraud Section Trial Attorney and current Assistant U.S. Attorney Leslie Wright of the District of Boston prosecuted the case; the case is now being handled by Trial Attorney Emily Gurskis of the Fraud Section.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in 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.