District Not Recorded

The Justice Department today announced that it has reached a settlement agreement with Mrs. Fields’ Original Cookies Inc. (Mrs. Fields), headquartered in Broomfield, Colorado. Mrs. Fields’ brands produce, distribute, and sell specialty items, including cookies, brownies, and chocolates. The settlement resolves a claim that Mrs. Fields’ production and distribution center located in Salt Lake City, Utah, violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by discriminating against work-authorized non-U.S. citizens when verifying their work authorization. 

The Department’s independent investigation concluded that, from at least March 21, 2016, to March 20, 2017, Mrs. Fields required lawful permanent residents to provide specific documentation issued by the Department of Homeland Security to prove their work authorization, while not imposing this requirement on U.S. citizens.  All work-authorized individuals, regardless of citizenship status, have the right to choose which document to present, from a range of valid documents, to demonstrate their authority to work in the United States.  The anti-discrimination provision of the INA prohibits employers from subjecting employees to unnecessary documentary demands based on employees’ citizenship status or national origin.

“Workers should not have to face discrimination because of citizenship status or national origin in the employment eligibility verification process,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division.  “We are pleased that Mrs. Fields has agreed to work with the Division and ensure that its staff is trained on the anti-discrimination provision of the INA, and we look forward to working with the company to reach this shared goal.”

Under the settlement, Mrs. Fields will pay $26,400 in civil penalties to the United States and be subject to departmental monitoring and reporting requirements.  In addition, certain employees will be required to attend training on the requirements of the INA’s anti-discrimination provision.

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; retaliation and intimidation. 

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.

Applicants or employees who believe they were subjected to retaliation; different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.

The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission (FTC), filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against James Dolan for violating the premerger notification and waiting period requirements of the Hart-Scott-Rodino (HSR) Act of 1976 when he acquired voting securities of Madison Square Garden Company in 2017.  At the same time, the department filed a proposed settlement, subject to approval by the court, under which Dolan has agreed to pay a $609,810 civil penalty to resolve the lawsuit.

The HSR Act imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo premerger antitrust review.  Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the department.  The maximum civil penalty for an HSR violation, which is adjusted annually, is currently $41,484 per day.

Further details about this matter are described in the FTC’s press release issued today, and in the attached complaint and competitive impact statement.

Consistent with the requirements of the Tunney Act, the proposed settlement, along with the competitive impact statement, will be published in the Federal Register.  Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Roberta S. Baruch, Special Attorney, United States, c/o Federal Trade Commission, 600 Pennsylvania Avenue, NW, CC-8407, Washington, D.C. 20580.  At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.

Washington, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Mrs. Fields’ Original Cookies Inc. (Mrs. Fields), cuya sede se encuentra en Broomfield, Colorado. Las marcas de Mrs. Fields producen, distribuyen y venden artículos especiales, entre ellos galletas, brownies y chocolates. El acuerdo resuelve una queja de que el centro de producción y distribución de Mrs. Fields en Salt Lake City, Utah vulnerara la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a individuos con autorización para trabajar que no eran ciudadanos de los EE. UU. a la hora de verificar su permiso para trabajar.

La investigación independiente del Departamento concluyó que, desde al menos el 21 de marzo del 2016 hasta el 20 de marzo del 2017, Mrs. Fields obligó a residentes permanentes legales a proporcionar documentos específicos emitidos por el Departamento de Seguridad Nacional para comprobar su autorización para trabajar mientras que no impusieron tales requisitos a ciudadanos estadounidenses. Todo individuo con autorización para trabajar, independientemente de su estatus de ciudadanía, tiene derecho a elegir, dentro de una lista de documentos válidos, el que desea presentar para demostrar su autoridad para trabajar en los Estados Unidos. La disposición antidiscriminatoria de la INA prohíbe que los empleadores sometan a sus empleados a requisitos documentales innecesarios con base en el estatus de ciudadanía o la nacionalidad de origen de los mismos.

«Los trabajadores no deben ser discriminados a causa de su estatus de ciudadanía o nacionalidad de origen durante el proceso de verificación de la elegibilidad para trabajar», declaró el Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband. «Nos complace ver que Mrs. Fields ha acordado colaborar con la División y asegurar que su personal esté capacitado en cuanto a la disposición antidiscriminatoria de la INA. Esperamos con interés la continua colaboración de la empresa para lograr esta meta en común».

Conforme el acuerdo, Mrs. Fields pagará $26,400 en sanciones civiles a los Estados Unidos y se someterá a los requisitos de supervisión y declaración del departamento. Además, se requerirá a ciertos empleados acudir a una capacitación acerca de los requisitos de la disposición antidiscriminatoria de la INA.

La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias y la intimidación.

Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; envíe un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.

Aquellos postulantes o empleados que creen haber sido sometidos a represalias, otros requisitos documentales por motivos de su nacionalidad de origen o su estatus migratorio o de ciudadanía; o discriminación por motivos de su nacionalidad de origen o su estatus migratorio o de ciudadanía en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.

Pharmaceutical company Actelion Pharmaceuticals US, Inc. (Actelion), based in South San Francisco, California, has agreed to pay $360 million to resolve claims that it illegally used a foundation as a conduit to pay the copays of thousands of Medicare patients taking Actelion’s pulmonary arterial hypertension drugs, in violation of the False Claims Act, the Justice Department announced today. 

When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”).  These copay obligations may be substantial for expensive medications.  Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. 

Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering or paying, directly or indirectly, any remuneration—which includes money or any other thing of value— to induce Medicare patients to purchase the company’s drugs.  This prohibition extends to the payment of patients’ copay obligations. 

Actelion sells a number of pulmonary arterial hypertension drugs, including Tracleer, Ventavis, Veletri, and Opsumit (the “Subject Dugs”).  The government alleged that Actelion used a foundation, which claims 501(c)(3) status for tax purposes, as an illegal conduit to pay the copay obligations of thousands of Medicare patients taking the Subject Drugs and to induce those patients to purchase them, because it knew that the prices Actelion set for the Subject Drugs could otherwise pose a barrier to those purchases.  From 2014 to 2015, Actelion made donations to the foundation, which, in turn, used those donations to pay copays of patients prescribed the Subject Drugs.  The government alleged that Actelion routinely obtained data from the foundation detailing how much the foundation had spent for patients on each Subject Drug; it then used this information to decide how much to donate to the foundation and to confirm that its contributions were sufficient to cover the copays of only patients taking the Subject Drugs.  The Government further alleged that Actelion engaged in this practice even though the foundation had warned the company against receiving such information.  The Government also alleged that, meanwhile, Actelion had a policy of not permitting Medicare patients to participate in its free drug program, which was open to other financially needy patients, even if those Medicare patients could not afford their copays for the Subject Drugs.  Instead, to generate revenue from Medicare and induce purchases of the Subject Drugs, the government alleged that Actelion referred such Medicare patients to the foundation, which allowed the patients copays to be paid and resulted in claims to Medicare for the remaining cost.   

 “This settlement, like prior settlements concerning similar misconduct, makes clear that the government will hold accountable companies that pay illegal kickbacks,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “Pharmaceutical companies cannot increase drug prices while engaging in conduct designed to defeat mechanisms put in place to check such prices and then expect Medicare to pay for the ballooning costs."

“Using data from CVC that it knew it should not have, Actelion effectively set up a proprietary fund to cover the co-pays of just its own drugs,” said United States Attorney Andrew E. Lelling for the District of Massachusetts. “Such conduct not only violates the anti-kickback statute, it also undermines the Medicare program’s co-pay structure, which Congress created as a safeguard against inflated drug prices. During the period covered by today’s settlement, Actelion raised the price of its main PAH drug, Tracleer, by nearly 30 times the rate of overall inflation in the United States.”

“Today’s settlement against Actelion is a victory for the public and underscores the FBI's commitment to safeguarding the financial integrity of the Medicare program,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Simply put, the goal of the FBI's Health Care Fraud program is to ensure that patients receive the appropriate treatments and therapies according to their medical needs, without corrupt or profit-driven influence of drug manufacturers.”

“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the Department of Health and Human Service’s Boston Regional Office.  “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program.”

The government’s resolution of this matter illustrates the government’s emphasis on combating healthcare fraud.  One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The investigation was conducted by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with the Department of Health and Human Services, Office of Inspector General; and the Federal Bureau of Investigation. 

On June 16, 2017, after the conduct alleged in today’s settlement agreement, Johnson & Johnson acquired Actelion.  The claims resolved by the settlement are allegations only; there has been no determination of liability. 

Today, Acting Attorney General Matthew G. Whitaker hosted the 2018 Project Safe Neighborhoods (PSN) National Conference’s Award Ceremony in Kansas City, Missouri, to recognize individuals, task forces, and organizations for their dedication and contribution to the success of PSN.

"Project Safe Neighborhoods is making our prosecutions more targeted and more effective—and that makes the American people safer," said Acting Attorney General Whitaker. "Today the Department recognizes 16 examples of those who go above and beyond the call of duty in using PSN to reduce violent crime. We had a lot of impressive nominees, but even with tough competition, these 16 stood out. I want to thank each one of them for their service and congratulate them on a job well done."

This year, 16 awards were presented in six categories:

The award for Outstanding Individual Contribution to the PSN Program is the Department’s award to those in law enforcement who individually pioneered this frontier of justice.

Robert C. Troyer

Former United States Attorney

District of Colorado

Former United States Attorney Robert Troyer helped create and lead one of the very first Crime Gun Intelligence Centers (CGICs) in the country. His tireless support of the CGIC in Denver, Colorado, was instrumental to its success. As a result of Troyer’s vision, leadership, and commitment to violent crime reduction, two additional CGICs are now operating in Colorado, enabling quick reaction to and revealing new connections between gun crimes being committed in the most violent places in the state. The CGIC approach Troyer pioneered serves as a national model for effectively using NIBIN, gun shot detection systems, training and other intelligence to identify current shooters and ensure their prosecution in the most appropriate jurisdiction. The ATF now has CGICs in each of its 25 field offices and Troyer has consulted with U.S. Attorneys’ offices nationwide as they have integrated CGICs into their PSN programs. His effort and energy for this violent crime reduction strategy have had a significant impact not only in the District of Colorado, but nationwide.

Captain Paul Lusczynski

Violent Crime Bureau

Tampa Police Department

Middle District of Florida

In response to a significant rise in shootings in Tampa, Florida, Captain Paul Lusczynski designed and implemented a strategy known as the Violent Impact Player (VIP) program, which has had a direct and substantial impact on driving down violent crime in Tampa. Captain Lusczynski studied lessons learned from targeted and prioritized enforcement strategies throughout the United States and tailored them to Tampa’s unique needs. Using a broad set of criteria, including violent crime indicators such as criminal history, known criminal use of violence and weapons, and gang membership, the Tampa Police Department (TPD) identified the most violent offenders in its jurisdiction. At a weekly meeting, federal, state, and local law enforcement discuss the individuals and screen cases for the most appropriate jurisdiction for prosecution. A 2017 study credits the VIP program with a 7.9% drop in violent crime. Captain Lusczynski created a culture of interagency cooperation that yielded tremendous results for the community and the Tampa VIP model is now being replicated in other cities. Captain Lusczynski has displayed leadership, vision, and devotion to duty that are in keeping with the highest traditions of American law enforcement.

Didi Nelson

Law Enforcement Coordination Manager

Northern District of Georgia

Since the beginning of PSN in 2001 through its reinvigoration in 2017, Didi Nelson has been a guiding light for PSN in the Northern District of Georgia and beyond. Nelson – who has more than 30 years of service to the Department – has worked to implement the PSN program faithfully and consistently since its inception. She is the bridge between the Department and local and state law enforcement whose partnership is so crucial for PSN’s success. Nelson has also worked to create strong relationships with the community and has been instrumental in creating connections with non-traditional partners, such as social service providers, faith-based organizations and other groups. As a result of her commitment, credibility, and extensive knowledge of PSN, the district’s reinvigorated PSN strategy has expanded rapidly since the fall of 2017 and spread the USAO’s anti-violence initiatives into every county of the District. Nelson continues to impact the PSN program nationwide by serving as an expert to other Districts in the country that are seeking to develop effective PSN strategies of their own.

Trisha Stein

Director of Administrative Operations

City of Detroit Police Department

Eastern District of Michigan

Trisha Stein has played an important coordination role in the Eastern District of Michigan’s PSN program. Stein is responsible for interfacing with PSN task force members, fiscal agents, and her internal administration to ensure the Detroit PSN program is successfully executed. Stein interfaces with agency heads, program managers, and community and faith leaders to ensure everyone remains focused on the goals of PSN. Stein is also responsible for local oversight and leveraging resources from most grant-funded programs. She is familiar with all the grants awarded to the city and leverages those resources so that the outcome is a force multiplier for all programs. There is no doubt Stein’s efforts to oversee, coordinate and facilitate the moving parts of PSN played a key role in the program’s success. Homicides are at the lowest level in 50 years, and fatal and non-fatal shooting are down by over 30%.

Gary Mervis

Founder

Camp Good Days and Special Times/Partners Against Violence Everywhere

Western District of New York

Gary Mervis changes lives. After his daughter was diagnosed with cancer, he single-handedly founded what is today one the largest and most successful camps for sick children in the world. Following his daughter’s death, Mervis decided to broaden his reach in helping others. Using the many connections he made while creating Camp Good Days and Special Times, Mervis set out to curb the growing violent crime problem in Rochester by establishing Partners Against Violence Everywhere (PAVE). Through his leadership, partners from state and federal law enforcement, business alliances, faith-based groups, education leaders, hospitals, and social services  were brought together to effect positive change in the community. PAVE has served as the platform on which Rochester’s violent crime reduction projects have launched, including the long-running Project Exile effort. For over 20 years, Mervis has led the Project Exile Board and ensured that it remains the model for how law enforcement and the community can work together to effectuate lasting change. The PAVE/Exile board and partnerships formed the base for the original PSN efforts and have been supporting the program, and its reinvigoration, ever since.

Sarah Wannarka

Chief of Major Crimes

San Antonio Division

Western District of Texas

Since the 1990s, people living in the east side of San Antonio have fallen victim to the growing swell of gang violence. The Bloods and Crips openly fought for control of the residential area through drive by shootings and murders. In the summer of 2017, the violence peaked when a 4-year old was shot and killed while playing video games with his 8-year old brother in their own home. Assistant United States Attorney Sarah Wannarka indicted members of the gang involved in that shooting. She also led a federal and state multi-agency law enforcement effort that fought to return peace to this neighborhood. Her efforts resulted in a federal indictment against 21 members of the Bloods and Crips, 189 state and local arrests, the seizure of 67 firearms, and nearly $200,000 worth of drugs being taken off the streets. In addition to her impactful caseload, AUSA Wannarka  leads  the PSN efforts in the District and ensures seamless coordination between the many task force members. She has engaged prevention service providers to participate in the program and spends countless hours of her personal time in community outreach activities, connecting the communities to the PSN program and to law enforcement more generally.

The award for Outstanding Overall Partnership/Task Force is the Department’s award to the groups of individuals that made the greatest impact for Project Safe Neighborhoods as we continue to bring peace to pair with the prosperity of all Americans.

Project EJECT Task Force

Southern District of Mississippi

In December 2017, the Southern District of Mississippi launched its PSN task force to combat violent crime occurring in Jackson, MS. The United States Attorney’s Office, ATF, DEA, FBI, and VSMS joined forces with HSI, the Jackson Police Department, Hinds County District Attorney’s Office, Mississippi State Crime Laboratory, city councilmen, community leaders, non-profits, and faith leaders to form Project EJECT, a holistic, multi- disciplinary approach to combating violent crime. EJECT stands for “Empower Jackson Expel Crime Together.” Project EJECT employs four platforms: prevention; prosecution; reentry and rehabilitation; and awareness. In addition to undertaking significant enforcement efforts, members of the task force conduct prevention activities at schools and non- profits, and engage the  community  through  regular town hall meetings. This coordinated and comprehensive approach helped reduce violent crime in the city of Jackson by over 16% in the last year.

Dallas PSN Task Force

Northern District of Texas

Formed in April 2018, the Dallas PSN Task Force is comprised of more than 60 individual officers and agents from at least 11 different local and federal partners, local government and schools, and more than 15 community stakeholder organizations. The goals of the Task Force are threefold: (1) to eliminate violence in the target area and reduce violence in Dallas as a whole; (2) to engage the community in the effort; and (3) to develop effective strategies for re- entry and prevention particularly as it relates to youth in the area. The law enforcement subcommittee of the Task Force has developed a close partnership through weekly meetings and close collaboration, which has led to over 100 arrests of violent individuals. In addition, over the last six months alone, the Task Force and its community engagement subcommittee have participated in over 40 community meetings and events designed to engage the community, including a large unity festival that served more than 1,000 citizens. The Task Force has also engaged in extensive outreach at schools and with local businesses and has translated its PSN materials into eight different languages due to the diverse population in the target enforcement area. The Task Force holds a monthly reentry night, where its  members  have  met with approximately 300 people returning from prison or beginning probation. Importantly,  the  Task Force has opened new lines of communication between residents and law enforcement in the target enforcement area that did not previously exist.

The award for Outstanding Local Prosecutor’s Office/Local Prosecutor is the Department’s award to the offices and attorneys that set the greatest example that we should consummately strive to emulate.

West Valley City Prosecutor’s Office

District of Utah

Since the inception of PSN, the West Valley City Prosecutor’s Office has dedicated a full-time prosecutor as a Special Assistant United States Attorney (SAUSA) to exclusively prosecute federal firearm cases. The West Valley City Prosecutor’s Office SAUSA has successfully prosecuted hundreds of federal violent crime cases. Through strategic enforcement, the Office has focused its efforts on  the most violent criminals, especially violent gang members, domestic violence abusers, and armed drug traffickers. The efforts of the Office have led    to the removal of the most violent armed criminals from West Valley. And for most of the 18 years, West Valley has not received any federal compensation for the dedicated SAUSA. The West Valley SAUSA has always been one of the top PSN producers for the District of Utah, and the district’s PSN success is, in large part, a result of the dedication of the West Valley City Prosecutor’s Office.

Branden B. Miles

Weber County Prosecutor’s Office

District of Utah

Branden Miles is one of the longest tenured SAUSAs in the District of Utah and has made one of the greatest contributions to the Utah’s PSN program.  As a state prosecutor in the Weber County Attorney’s Office, Miles was first cross-deputized as a SAUSA    in 2007. Since that time, he has worked tirelessly to prosecute dangerous firearm offenders, armed drug traffickers, and violent gang members. Miles, who currently serves as Chief Criminal Deputy in his office, has mentored five of his colleagues in becoming productive federal gun prosecutors. Most recently, he played an instrumental role in establishing the target enforcement area in downtown Ogden, Utah, shepherding crucial components  of  local,  state, and federal law enforcement in a collaborative and strategic approach to reducing violent crime in this area. Miles’s work has  made  a  significant  impact on northern Utah’s violent crime problems and has resulted in extricating many of the most violent and dangerous criminals from this community.

The award for Outstanding Local Police/Sheriff Department Involvement is the Department’s award to the officers and departments that have laid the groundwork and spent time in the trenches fighting violent crime in the field, so others can fight it in the courtroom.

Wilmington Police Department

District of Delaware

The West Center City project is at the heart of Delaware’s PSN efforts. In 2017, Wilmington Police Department (WPD) began working with local and federal agencies to achieve a common goal: to remove violent actors from the target neighborhood and improve residents’ quality of life. A newly-established patrol unit conducted foot patrols and implemented community policing strategies. Officers worked with city agencies to shut down nuisance properties and provide other services to improve residents quality of life such as collecting garbage and cutting down tree branches. WPD officers worked with federal law enforcement to arrest drug dealers selling openly and to investigate shootings and murders. WPD has also established a “Real Time Crime Center” to support data-driven policing strategies. These efforts have made Wilmington safer for everyone. The WPD has reduced homicides by 33%, shootings by over 70%, burglaries by 31%, and rapes by 100% in the target neighborhood.

West Palm Beach Police Department

Southern District of Florida

The West Palm Beach Police Department’s commitment to the core principles of the reinvigorated PSN has had, and continues to have, a dramatic effect in the Southern District of Florida. West Palm Beach officers serve full time as task force officers with ATF, DEA, and FBI to combat violent crime. In 2018, the West Palm Beach Police Department created a “Real Time Crime Center” that uses intelligence from a number of sources to generate current and actionable law enforcement leads. In addition to enforcement activity, West Palm Beach PD has also made a commitment to community engagement, which successfully built bridges between law enforcement and the communities they serve. The West Palm Beach’s community engagement initiatives are extensive, and include not only national programs, but also local programs like the “R.I.P.” program that interacts weekly with juvenile offenders arrested for gun and violent crimes, and “Cops and Scholars,” which champions kids in vulnerable communities. West Palm Beach PD also serves as a partner to many outside organizations and programs. All of these efforts are contributing to the success of PSN in this community.

The award for Outstanding Community Involvement is the Department’s award to the regular citizens who saw a need for action and filled that need with their every effort. They too set an example and prove a point that Project Safe Neighborhoods is not something top-down, but rather bottom-up.

Better Family Life Initiative, James Clark

Vice President Community Outreach

Eastern District of Missouri

James Clark is the Vice President, Community Outreach, for Better Family Life, Inc. (BFL), a community development organization that promotes positive change through cultural, economic, and educational programs. When the reinvigorated PSN  program was launched in the Eastern District of Missouri, Clark readily joined the U.S. Attorney’s violent crime reduction working group. Among his numerous contributions to PSN, Clark greatly expanded the BFL’s Gun Violence De-escalation Program.

The goal of the de-escalation program is to prevent violent confrontations between feuding parties, and thereby save lives. The program involves identifying situations in which there  is  an  impending  threat  of violence involving two or more adversaries. Community members notify  BFL  of  feuds  and other impending altercations; BFL also learns about feuds from members of the St. Louis Metropolitan Police Department and the St. Louis County Police Department. Upon learning of a feud, Clark dispatches trained staff members to investigate the  dispute. BFL identifies persons who have influence in  the lives of the combatants, including family members, coaches, clergy, or anyone who has influence over the adversary. With the help of this group, Clark and BFL provide conflict resolution assistance to mediate and de-escalate the dispute. BFL has successfully thwarted over 50 conflicts involving ongoing, escalating gun battles between combatants in the St. Louis area, with its results verified and studied by Washington University’s Brown School of Social Work.

Clark’s and BFL’s efforts to reduce gun violence through community involvement has been noteworthy and effective in other areas as well. For example, BFL organizes monthly summer “Clean Sweeps” where neighbors, members of law enforcement, and local construction companies clear and clean-up vacant and abandoned properties in distressed areas. Finally, Clark organized with the United States Attorney’s Office and Crime Stoppers over 40 public service announcements aimed at reducing violent crime which are aired on local radio.

Omaha 360° Violence Prevention Collaborative, Willie Barney

Executive Director

District of Nebraska

The Omaha 360° Violence Prevention Collaborative serves as a model of how PSN and federal prosecutors can partner with community-based efforts to enhance the law enforcement response to violent crime. The success of this program has dramatically decreased gun violence in Omaha and demonstrates that partnerships with non-criminal justice can greatly assist enforcement efforts through comprehensive prevention and community support.

Omaha 360°, a group of more than 400 organizations and thousands of participants, grew out of the Empowerment Network founded in 2006 by Willie Barney. He began by engaging members of his church and community and facilitating small group meetings with concerned citizens to address gun violence and improve the quality of life in the community. Barney also met with the Omaha Police Department (OPD) and worked to build a stronger relationship between OPD and the community. Today these stakeholders meet on a weekly basis and work together to address the root causes of gun violence and develop positive opportunities as alternatives to violence. Police- community relations  have  significantly  improved  as a result of this collaboration and OPD’s strong community engagement programs. These efforts have been key to violence reduction and community- building resulting in increased calls for service, witness cooperation, and clearance rates.

Omaha 360° has fully embraced its partnership with the United States Attorney’s Office. This partnership allows the United States Attorney’s Office to focus on its primary role—enforcing the law and, by doing so, improving public safety—while supporting other individuals and organizations to address the factors that contribute to violent crime. The combination of these efforts has made a significant impact in Omaha and is an integral component of the PSN effort.

The award for Innovative Prevention/Reentry Strategy is the Department’s award to those who made an impact to reduce offenses, preventing crime by mitigating risk, and preventing recidivism on the part of those reintegrating into society.

Offender Alumni Association

Northern District of Georgia

The Offender Alumni Association (OAA) organizes support groups for high-risk adult felons being released from custody to provide peer-to-peer support, help them solve dilemmas, and connect them with resources.  The organization is made up  of former offenders who are uniquely motivated and committed to helping those about to be released from prison. OAA’s model recognizes that continuous and consistent support is crucial to help prevent recidivism, accordingly, OAA meets with offenders while they are still incarcerated, and maintains relationships with them and their families to connect them with networks of support in their communities upon release. OAA has supported more than 650 offenders returning to the community.  In  2018, OAA expanded in support of the Northern District  of Georgia’s PSN strategy and now partners with the USAO, state and federal agencies, and other providers to support high-risk adult offenders being released from custody into PSN target enforcement areas.

The Justice Education Center, Inc.

District of Connecticut

The USAO for the District of Connecticut and The Justice Education Center developed the Career Pathways Technology Collaborative, a program designed to provide skilled vocational, credentialed training to at-risk youth, 16-24 years of age. Career Pathways enables young people to acquire credits toward their high school diploma or GED, obtain entry or competitive level employment, or seek further technology certifications through union or community college programs. This Collaborative is deeply community-based, as the Justice Education Center has developed partnerships with  local  Boards of Education, community colleges, workforce development boards, and unions. Of the 33 youths enrolled in the program since 2015, over 70% received credit towards graduation. The success of the partnership between the District of Connecticut and The Justice Education Center has fostered the development of new investments in education, risk reduction and career readiness – with PSN funds serving as critical leverage for additional state, municipal and foundation support.

Today, Acting Attorney General Matthew Whitaker issued the following statement on the National Day of Mourning for President George H.W. Bush: "President George H.W. Bush was a patriot who dedicated his life to serving this great nation," Acting Attorney General Matthew Whitaker said. "As President, he was a strong supporter of law enforcement and helped to lay the foundation for almost three decades of declining crime in America. This was an historic achievement that changed millions of American lives. For me personally, he was the first presidential candidate that I ever voted for. His example has always been an inspiration to me--and it always will. This Department of Justice is determined to continue his legacy of supporting law enforcement officers and protecting the right to be safe. President Bush’s memory will live on, not just in the history books, but in the hearts of a grateful nation. "

A federal jury in the Eastern District of Virginia convicted a Honduran man yesterday of leading a drug trafficking organization that helped smuggle thousands of kilograms of cocaine into the United States over the last decade. 

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, Acting Special Agent in Charge Scott W. Hoernke for the Drug Enforcement Administration’s (DEA) Washington Field Division, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement.

Arnulfo Fagot-Maximo, 57, was convicted of conspiracy to distribute cocaine knowing that the cocaine was to be unlawfully imported into the United States following a five-day trial before U.S. District Judge Liam O’Grady.  Fagot-Maximo had been extradited to the United States following his indictment in the Eastern District of Virginia.  According to court records and evidence presented at trial, Arnulfo Fagot-Maximo was the leader of a drug trafficking organization based in the La Mosquitia region of the Departamento Gracias a Dios, Honduras. His organization was a critical link between Colombian cocaine suppliers and other major Honduran traffickers. For over a decade, Fagot-Maximo received cocaine from Colombia along the Mosquitia coast by “go fast” boats, small aircraft, and submersible vessels in quantities ranging from a few hundred to several thousand kilograms per delivery. Most of this cocaine was transferred to the Montes Bobadilla organization in Francia, Honduras, where it was received by other traffickers. Eventually the cocaine was transported by land through Honduras and Guatemala, and it was then delivered to Mexican cartels for importation into the United States. Fagot-Maximo received tens of millions of dollars in U.S. currency for the sale and delivery of this cocaine. 

He faces a mandatory minimum sentence of 10 years and a maximum sentence of life in prison when sentenced on March 29, 2019. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

The case was investigated by the DEA as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Harpoon through DEA’s HIDTA Task Force in Annandale Virginia. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

Assistance in the investigation and prosecution was provided by the U.S. Attorney’s Offices for the Southern District of New York, the Middle District of Florida, and the Southern District of Florida, as well as assistance from the U.S. Coast Guard, and the Honduran National Police. Trial Attorney Anthony T. Aminoff of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorneys James L. Trump and Thomas W. Traxler of the Eastern District of Virginia are prosecuting the case.  The Criminal Division’s Office of International Affairs assisted with the extradition in this matter.

Two Miami, Florida residents pleaded guilty today to health care fraud charges for their roles in an $8.6 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, Special Agent in Charge Shimon R. Richmond of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Miami Air and Marine Branch Director Martin G. Wade of the U.S. Customs and Border Protection (CBP) Air and Marine Operations made the announcement.

Alexander Ros Lazo, 54, an owner and operator of T.L.C. Health Services Inc., a home health agency, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Jose E. Martinez of the Southern District of Florida.  Misleidy Ibarra, 46, also of Miami, a licensed massage therapist, pleaded guilty before Judge Martinez to one count of conspiracy to commit health care fraud.  Sentencing has been scheduled for Feb. 5, 2019 before Judge Martinez. 

As part of his guilty plea, Ros Lazo admitted that he paid kickbacks and bribes to his co-conspirators in exchange for home health services prescriptions and the referral of Medicare beneficiaries to T.L.C. Health Services, a company based in Miami.  He further admitted that he and his co-defendant, Misleidy Ibarra, agreed with their co-conspirators to commit health care fraud by arranging for Ibarra to render therapy services on behalf of licensed therapists despite the fact that they knew she was not licensed to render the physical and occupational therapy services to the Medicare beneficiaries and billed Medicare for those services.   As part of her guilty plea, Ibarra admitted to conspiring with Ros Lazo to commit health care fraud by rendering physical therapy services to Medicare beneficiaries when Ibarra was not licensed to provide these services.  Ros Lazo admitted that as a result of the fraudulent claims, Medicare paid $8.6 million in benefits that it otherwise would not have.  Ros Lazo was charged along with Ibarra in an indictment returned on June 21, 2018. 

The case was investigated by the FBI, HHS-OIG and CBP Air and Marine Operations.  Trial Attorney Alexander Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Yisel Valdes of the Southern District of Florida are prosecuting the case. 

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

A Colombian national was sentenced to 180 months in prison for his role in a scheme to smuggle illegal aliens from Colombia into the United States, which resulted in the rape of one and the death of two Cuban nationals.

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 and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.

Fredis Valencia Palacios, 30, a Colombian national extradited to the United States in April 2018 to face these charges, previously pleaded guilty to one count of conspiracy to encourage and induce aliens to come to the Unites States resulting in death as well as three counts of encouraging and inducing aliens to come to the United States resulting in death and placing in jeopardy the lives of any person. Valencia Palacios was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida, who also ordered him to serve three years of supervised release following his prison sentence.

“When Valencia Palacios conspired to smuggle illegal aliens into the United States, he launched them on a deadly journey during which one was sexually assaulted and murdered, another also was brutally murdered, and a third was left for dead in the water,” said Assistant Attorney General Benczkowski.  “Today’s sentence once again demonstrates the Department of Justice’s commitment to hold accountable those who violate U.S. immigration laws.”

“The 15-year federal prison sentence imposed today against Fredis Valencia Palacios is a reminder to all that the high seas do not protect criminals from prosecution in the United States,” said U.S. Attorney Fajardo Orshan.  “When human smugglers knowingly plan to violate U.S. immigration laws and expose illegal aliens to grave danger during their arduous journey, the U.S. Attorney’s Office, with the assistance of our domestic and foreign law enforcement partners, stand ready to prosecute the offenders on American soil.”

“This case highlights the tragic perils involved with illegal alien smuggling,” said HSI Miami Special Agent in Charge Mark Selby.  “While exploiting human cargo for pure greed, this was a horrific tragedy resulting in sexual assault and two deaths.  HSI continues to aggressively target and dismantle transnational criminal organizations that profit from the suffering of individuals.”

According to the court record, including agreed-upon factual proffers, since 2014, Valencia Palacios, and his co-defendants, including Jhoan Stiven Carreazo Asprilla and Carlos Emilio Ibarguen Palacios, organized and arranged the unlawful smuggling of illegal aliens, transporting them across Colombia toward the Panamanian border, en route to the United States.  In 2016, three Cuban nationals arranged with, and paid, the defendants to transport them from Colombia to Panama, as they traveled to the United States, intending to arrive in Miami. 

On Sep. 7, 2016, during a portion of their journey, the three victims – two men and a woman – were delivered by Valencia Palacios to a boat captained by his co-defendants to begin their journey to Panama. During the boat trip, the co-defendants pulled a knife and a gun on the victims.  One of the co-defendants tied the wrists of the two male passengers and then threw them overboard, anchoring them with rope to the inside of the boat. The surviving male victim reported that he heard the co-defendants sexually assault the female victim before cutting her throat and murdering her.  The surviving victim also heard the co-defendants cut the other male victim’s throat, killing him.  While that was happening, the survivor managed to free himself and escape by swimming away.  The co-defendants left him for dead. 

The next day, a local fisherman discovered the survivor, who was subsequently rescued by the Colombian Navy.  The survivor directed the Colombian authorities to the place where the murders happened, and the Colombian authorities retrieved the bodies. Their throats and bellies had been cut open and they were tied up together and submerged in the water.  The co-defendants were subsequently located and arrested.

Carreazo Asprilla and Ibarguen Palacios are scheduled to be sentenced on Jan. 4, 2019 before U.S. District Judge Martinez.

This case was investigated by HSI Miami, with assistance from the HSI Bogota field office.  The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation.  The Criminal Division’s Office of International Affairs provided significant support with the defendants’ extradition.  The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities. 

Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida prosecuted the case.

A jury sitting in the Eastern District of Pennsylvania convicted longtime political operative Kenneth Smukler, 58, of Villanova, Pennsylvania, today on charges of making and concealing illegal campaign contributions in two Congressional primary elections, and of obstructing justice in an investigation by the Federal Election Commission (FEC), announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania.

“Today’s convictions demonstrate the Department of Justice’s commitment to ensuring a level playing field in the financing of federal elections,” said Assistant Attorney General Benczkowski. “We will hold accountable those who violate campaign finance and other laws designed to protect the fairness and transparency of our democracy.” 

“Smukler was the mastermind of multiple crooked political schemes,” said U.S. Attorney McSwain.  “He showed a true pattern of deception by misusing funds and lying to corrupt the entire political process. The only way to guarantee open and fair elections is to have everyone play by the same rules.  Smukler ignored those rules and broke the law so that his candidates could try to win at all costs.  We are grateful that the jury saw through his lies and held him accountable for his widespread criminal conduct.”

The jury found Smukler guilty of conspiracy to violate federal law, making and causing unlawful campaign contributions and causing false statements to the FEC in connection with a 2012 congressional primary campaign in a Philadelphia-area Congressional district.  The jury further found Smukler guilty of making and causing unlawful campaign contributions, causing the filing of false reports to the FEC concerning contributions and expenditures, causing false statements to the FEC in connection with a 2014 congressional primary campaign in another Philadelphia-area Congressional district, and obstructing an FEC investigation.

In 2012, Smukler engaged in a conspiracy to make a concealed payment of $90,000 to Congressional candidate and former Philadelphia Municipal Judge Jimmie Moore to get Judge Moore to drop out of the primary election race.  Smukler, who worked for another candidate, orchestrated the payment of the money through his own companies, a shell company of Judge Moore’s campaign manager, Carolyn Cavaness, and another campaign consultant, D.A. Jones.  Judge Moore, Cavaness, and Jones all have pleaded guilty separately.

From 2014 through 2015, Smukler, as a campaign manager, also made, caused, and concealed excess and conduit contributions and engaged in a falsification and obstruction scheme involving a different Congressional candidate.  The excess contributions came from associates of Smukler and were funneled through two of Smukler’s consulting companies.  The conduit contributions were routed through another political consultant and the candidate.

The jury found that in or about April 2014, Smukler became aware that the campaign was running out of funds that it could spend on primary election expenses.  Smukler nevertheless directed the campaign to continue paying for goods and services associated with the primary election.  In or about May 2014, one of Smukler’s companies made a $78,750 payment to the campaign that was used to pay for primary election expenses.  Smukler falsely told the campaign that this money came from a “segregated media account,” when in fact the payment was funded by an associate of Smukler’s and therefore constituted an illegal campaign contribution. 

Moreover, after Smukler’s candidate lost the primary election, the campaign did not have sufficient funds to repay the contributions that the campaign had received for the general election.  To conceal this shortfall, Smukler funneled illegal contributions totaling $150,000 from an associate to the campaign through two of Smukler’s consulting companies.  Smukler falsely told the campaign that these payments were refunds of money that had been “escrowed” in Smukler’s companies for general election expenses, when, in fact, the money had come not from any such account but from Smukler’s associate, and the money could not have been “escrowed” campaign funds because Smukler’s companies had already spent a significant portion of the funds they had received from the campaign.

Smukler further caused the campaign to falsely characterize the payments from his companies as refunds in FEC reports and in a letter to the FEC from unwitting campaign counsel, which led the FEC to dismiss a pending complaint against the campaign by another candidate in the primary.

The jury also convicted Smukler of making unlawful conduit contributions to the campaign in 2014, through Jones, and again in 2015 through the candidate herself. 

Judge Jan E. DuBois set sentencing for March 13, 2019.

The case was investigated by the FBI and prosecuted by Richard C. Pilger, Director of the Election Crimes Branch of the Public Integrity Section of the Criminal Division; Rebecca Moses, Trial Attorney of the Public Integrity Section and by Assistant U.S. Attorney Eric L. Gibson of the Eastern District of Pennsylvania.

The former chief executive officer of FutureNet Group Inc., an information technology company, was sentenced today to 12 months in prison followed by one year of supervised release and a fine in the amount of $10,000 for his role in orchestrating a scheme to bribe an official from the City of Detroit to obtain benefits for FutureNet.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Timothy Slater of the FBI’s Detroit Division made the announcement.

Parimal D. Mehta, 55, of Northville, Michigan, previously pleaded guilty to one count of federal program bribery before U.S. District Judge Robert H. Cleland of the Eastern District of Michigan.

According to admissions made in connection with his plea, from 2009 through August 2016, Mehta hand-delivered more than $6,500 to Charles L. Dodd, the former Director of Detroit’s Office of Departmental Technology Services, including two cash bribes paid in the restroom of a Detroit-area restaurant in 2016.  Dodd previously pleaded guilty to bribery and was sentenced to 20 months in prison on Sept. 11, 2018.

Mehta admitted that he sought preferential treatment for FutureNet in exchange for the bribes he paid to Dodd.  Among other things, Mehta asked Dodd to cause FutureNet to be selected to fill open positions for contract personnel and to implement particular technological projects in various city departments.  Mehta also asked Dodd to supply him with confidential information regarding Detroit’s internal operations, including information regarding Detroit’s internal budgets for particular technology projects and personnel, which would benefit FutureNet in its dealings with Detroit.

The FBI’s Detroit Division investigated the case.  Deputy Chief Robert J. Heberle and Trial Attorney James I. Pearce of the Criminal Division’s Public Integrity Section are prosecuting the case. 

A Homestead, Florida man was sentenced today in federal court in Miami to 36 months in prison for surreptitiously producing and distributing pornographic audio and video recordings of himself engaging in sexual activity with multiple men.      

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, made the announcement today.  Deneumostier was arrested in July 2018 and has been held in custody since then.

Bryan Deneumostier, 34, a national of Peru, also known by the screen name “susanleon33326,” was sentenced today by U.S. District Judge Cecilia M. Altonga of the Southern District of Florida.  Judge Altonga also ordered Deneumostier to serve three years of supervised release following his prison sentence.  Deneumostier pleaded guilty in September 2018 to two counts of illegal interception of oral communications. 

According to admissions made in connection with his plea and evidence presented at the sentencing hearing, Deneumostier assisted in the operation of a subscription-based pornography website called “straightboyz.net.”  The site offered for streaming approximately 619 “hook up” videos that depicted sexual activity between Deneumostier and other men.  The defendant had surreptitiously made audio and video recordings of the sexual encounters, without the victims’ knowledge or consent.  In many of the videos, the individuals, at Deneumostier’s direction, wore a blindfold and restraints and could not see the defendant or the room (or recording equipment) in which they were located.  Deneumostier later sold the “hook up” videos to a third party located overseas and caused them to be posted onto the website. 

In many cases, in order to find men for his surreptitious recordings, Deneumostier would use social media accounts or Craigslist to post that he would be hosting sexual parties or encounters at his residence.  In several of these advertisements, Deneumostier would state he was either a man looking for men (m4m), a transvestite looking for men (t4m), or a woman looking for men (w4m).  In most advertisements he stated he was looking for “young sexy guys.” 

The indictment and plea agreement refer to four known victims whose identities are being withheld to protect their privacy.  Deneumostier admitted that he recorded himself engaging in sexual activity with approximately 150 men whom were featured on his website and that approximately 80 of those did not know that he was recording them; one of the victims recorded was a blindfolded 16-year-old male. 

The investigation was conducted by HSI.  Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Cary Aronovitz of the Southern District of Florida prosecuted the case. 

The Department of Justice announced today the filing of a civil forfeiture action in the U.S. District Court for the District of Columbia seeking to forfeit and recover more than $73 million in funds associated with an international conspiracy to defraud U.S. financial institutions and to launder funds controlled by Jho Taek Low, also known as “Jho Low,” an individual who is the subject of an indictment filed in the Eastern District of New York, alleging that Low and others conspired to launder billions of dollars embezzled from 1Malaysia Development Berhad (1MDB), Malaysia’s investment development fund, and pay hundreds of millions of dollars in bribes to foreign officials, among other things.

The announcement was made by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Director in Charge William F. Sweeney Jr. of the FBI New York Field Office, and Special Agent in Charge Keith A. Bonanno of the Department of Justice Office of the Inspector General (DOJ-OIG) Cyber Investigations Office.

As alleged in the forfeiture complaint, multiple bank accounts were opened at U.S. financial institutions by Prakazrel (“Pras”) Michel and former Justice Department employee George Higginbotham in 2017 to receive tens of millions of dollars in funds from overseas accounts controlled by Jho Low.  In opening these accounts, Michel and Higginbotham allegedly made false and misleading statements to U.S. financial institutions that housed the accounts in order to mislead these institutions about the source of the funds and to obscure Jho Low’s involvement in these transactions.  Michel and Higginbotham allegedly intended to use these funds to attempt to influence the Justice Department’s investigation of Jho Low and 1MDB.  As alleged in the complaint, Higginbotham, as a Justice Department employee, played no role in any aspect of the investigation and failed to influence any aspect of the Department’s investigation of Low or 1MDB.

“According to the allegations in the complaint, Michel and Higginbotham defrauded U.S. financial institutions and laundered millions of dollars into the United States as part of an effort to improperly influence the Department’s investigation into the massive embezzlement and bribery scheme involving 1MDB,” said Assistant Attorney General Benczkowski. “The Criminal Division and our law enforcement partners will do everything we can to trace, seize, and forfeit the proceeds of foreign corruption that flow through the U.S. financial system.”

“Corruption is often at the root of national security, terrorism, and criminal threats, and those who seek to take advantage of our financial systems to perpetuate fraud and abuse will not be tolerated,” said FBI Assistant Director in Charge Sweeney.  “The FBI is committed to investigating and uncovering corruption no matter where it occurs, in conjunction with our domestic and international partners.”

“Ensuring the integrity of Department of Justice employees is of paramount importance,” said DOJ-OIG Special Agent in Charge Bonanno.  “An employee who facilitates or participates in this type of illicit activity will be thoroughly investigated by the OIG, including situations where attempts are made to influence the Department’s independence.”

This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office.  Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] (link sends e-mail).

The investigation was conducted jointly by the FBI’s International Corruption Unit and the Department of Justice Office of the Inspector General. The case is being prosecuted by Deputy Chief Woo S. Lee, and Trial Attorneys Joshua L. Sohn and Rebecca A. Caruso of the Criminal Division’s Money Laundering and Asset Recovery Section.  The Criminal Division’s Office of International Affairs provided substantial assistance.  

The Justice Department today announced that the Office of Justice Programs’ (OJP) Office for Victims of Crime (OVC) awarded more than $16.7 million in Antiterrorism and Emergency Assistance Program (AEAP) funding to aid survivors of the Oct. 1, 2017, mass shooting in Las Vegas, Nevada. Acting Attorney General Matthew Whitaker made the announcement in a speech to state, local, and federal law enforcement in Cincinnati this morning.

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. In June, the Department awarded over $2 million to support first responders in the aftermath of the shooting. In addition, earlier this month the Department announced a new $8.7 million grant to provide multi-disciplinary, scenario-based active shooter training to first responders across the country.

“This Department of Justice stands with our first responders and victims of crime," Acting Attorney General Matthew Whitaker said. "We have already provided $3 million to cover expenses for state and local law enforcement in Las Vegas and in Clark County following last October's horrific mass shooting. Today we take the next step of providing more than $16 million for the victims of that tragedy and for the first responders who came to the scene, to help pay for counseling, therapy, rehabilitation, trauma recovery, and legal aid. While we cannot undo the harm that has been done, this Department of Justice is doing what we can to help Las Vegas heal."

The funding, totaling $16,735,720, will assist victims of this incident, including ticket holders, concert staff, vendors, witnesses, law enforcement personnel, and other first responders. It also will support close family members, medical personnel, coroner’s staff, taxi drivers, and others who helped the concert attendees. The grant will defray the costs of counseling and therapy, vocational rehabilitation, and trauma recovery for victims and emergency responders. Funds will also help with legal aid and supplement the massive outlays incurred by the Nevada victim compensation program.

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 can award 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.

A former Davidson County, Tennessee judge was sentenced today to 44 months in prison, restitution of $18,000 and a forfeiture of $13,500 for obstruction of justice, witness tampering, and stealing money from an organization receiving federal funds, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran for the Middle District of Tennessee.

Cason “Casey” Moreland, 61, of Smyrna, Tennessee, was sentenced by Chief U.S. District Judge Waverly D. Crenshaw Jr.  The defendant pleaded guilty to five counts of a superseding information on May 24.

According to admissions made in connection with Moreland’s plea agreement, in January 2017, the FBI began investigating whether Moreland solicited sexual favors in exchange for favorable judicial treatment while sitting as a General Sessions Court Judge in Nashville and Davidson County, Tennessee.  Moreland admitted that in February 2017, he became aware that he was a target of an investigation and took steps to try to obstruct it.  Specifically, he devised a scheme to pay a material witness to sign a false affidavit recanting her previous statements, which implicated his criminal conduct in trading judicial favors for sex.  He also devised a scheme to have drugs planted in the witness’s car, and then to have her stopped by police, so that she would be arrested and her credibility would be destroyed.  Moreland carried out these schemes by using a burner phone registered in the name of “Raul Rodriguez” and communicating with an individual who subsequently became an informant, working at the direction of the FBI.    

Moreland also admitted to criminal conduct stemming from his involvement with the General Sessions Drug Treatment Court, a specialized court program designed to provide alternatives to incarceration for certain defendants.  The work of the Drug Treatment Court was supported by a nonprofit entity called the Davidson County Drug Court Foundation (the “Drug Court Foundation”).  Although Moreland did not have an official position with the Drug Court Foundation, he admitted that he exercised de facto authority over the Drug Court Foundation’s operations. 

In connection with his plea agreement, Moreland admitted that beginning in spring 2016, he began embezzling cash from the Drug Court Foundation by directing the Drug Court Foundation’s director to deliver to his office envelopes of cash that she had collected from individuals seeking outpatient treatment for substance abuse.  Then, in February 2017, after learning of the FBI’s investigation, Moreland instructed the Drug Court Foundation’s director to destroy all documents and records relating to the cash payments that he had embezzled. Finally, in February 2018, at a time when he was on pre-trial release for the original charges, Moreland admitted that he attempted to tamper with a witness by suggesting to the Drug Court Foundation’s director that she lie to the grand jury investigating his conduct.

This case was investigated by the FBI’s Nashville Resident Agency of the Memphis Division and is being prosecuted by Trial Attorney Lauren Bell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee.

A former employee with the U.S. Department of Justice pleaded guilty today for his role in a conspiracy to deceive banks in the United States about the source and purpose of millions of dollars sent from overseas to finance a lobbying campaign on behalf of foreign interests, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.

George Higginbotham, 46, of Washington, D.C., who was employed at the Justice Department as a Senior Congressional Affairs Specialist from July 2016 to August 2018, pleaded guilty to one count of conspiracy to make false statements to a bank before U.S. District Judge Colleen Kollar-Kotelly of the District of Columbia.

According to admissions made in connection with his plea, in 2017 Higginbotham helped facilitate the transfer of tens of millions of dollars from foreign bank accounts to accounts in the United States to finance a lobbying campaign to resolve civil and criminal matters related to the Department of Justice’s investigation of the embezzlement and bribery scheme concerning 1Malaysia Development Berhad (1MDB).  Higginbotham admitted that the foreign principal behind the lobbying campaign was alleged to be the primary architect of the 1MDB scheme.  Higginbotham, as a Justice Department employee, played no role in any aspect of the investigation and failed to influence any aspect of the Department’s investigation of 1MDB.  Higginbotham further admitted that another purpose of the lobbying campaign was an attempt to persuade high-level U.S. government officials to have a separate foreign national, who was residing in the United States on a temporary visa at the time, removed from the United States and sent back to his country of origin. 

In order to conceal the identity of the foreign principal behind the lobbying campaign, Higginbotham admitted to conspiring to make false statements to financial institutions in the United States concerning the source and purpose of the funds.  Higginbotham also admitted to working on various fake loan and consulting documents in order to deceive banks and other regulators about the true source and purpose of the money. 

The Department of Justice Office of the Inspector General and the FBI are investigating the case.  Deputy Chief John Keller and Trial Attorneys Ryan Ellersick, James Mann, Sean Mulryne, and Nicole Lockhart of the Criminal Division’s Public Integrity Section, and Deputy Chief Woo Lee and Trial Attorney Joshua Sohn of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case. 

A Bangladeshi national residing in Monterrey, Mexico, was arrested yesterday on arrival at George Bush Intercontinental Airport to face a criminal indictment issued in the Laredo Division of the Southern District of Texas for his role in a scheme to smuggle aliens from Mexico into the United States.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio made the announcement.

The unsealed indictment alleges that from March 2017 to August 2018, Moktar Hossain, 30, conspired to bring and brought 14 Bangladeshi nationals to the United States at the Texas border in exchange for a fee.  Hossain operated out of Monterrey, Mexico, where he maintained a hotel that housed aliens before they were transported to the U.S. border by drivers paid by Hossain. 

Hossain was presented today before U.S. Magistrate Judge Dena Hanovice Palermo in the Southern District of Texas for his initial appearance.  At the hearing, Judge Palermo ordered that Hossain be held pending transfer to Laredo for further criminal proceedings.

“Protecting our country from illegal immigration and the national security threat it poses is a priority for the Department of Justice,” said Assistant Attorney General Benczkowski. “The Criminal Division is dedicated to working with our law enforcement partners both here and abroad to disrupt the flow of illegal aliens into the United States, and bring those who facilitate their travel to justice.”

“Homeland Security Investigations remains steadfast in vigorously pursuing members of transnational criminal networks that exploit and endanger the people they smuggle into the United States,” said HSI Special Agent in Charge Folden.  “Smugglers are driven by simple greed with no thought for human compassion.  HSI continues to work with our law enforcement partners to maintain the integrity of our border and the safety of our communities.”

This case is being investigated by HSI Laredo, with assistance from HSI Monterrey, HSI Houston, HSI Calexico, U.S. Customs and Border Protection, U.S. Border Patrol and the U.S. Marshals Service.  The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

This case is being prosecuted by Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section with assistance from the U.S. Attorney’s Office for the Southern District of Texas.

The charges contained in the indictment are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.  

A Virginia Beach man was sentenced to 120 months in prison today, to be followed by 20 years of supervised release for possession of child pornography, announced 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.

Mark Earle Johnson, 61, pleaded guilty on Aug. 27, before U.S. District Judge Robert J. Krask of the Eastern District of Virginia to one count of possession of child pornography with a prior conviction. U.S. District Judge Arenda L. Wright Allen imposed the sentence today.

According to court documents, in July 2016, Virginia Beach Police Department officers were alerted to the fact that Johnson was in possession of child pornography, shortly after he was arrested for a violation of probation related to a previous conviction for child pornography in the state of Maryland.  A forensic examination of Johnson’s electronic storage devices confirmed that he had possessed and viewed images of child pornography while living in Virginia Beach, which Johnson admitted to viewing. 

The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Virginia Beach Police Department.  Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Elizabeth M. Yusi of the Eastern District of Virginia prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Three men were charged in an indictment returned Nov. 27 for their roles in a scheme to defraud U.S. Military contracts in Afghanistan, engaging in illegal commerce in Iran, and laundering money internationally.  Their conduct was in connection to two multi-million dollar contracts to provide supplies and logistical support to U.S. troops in Afghanistan.     

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C. and Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.

Abul Huda Farouki, 75, of McLean, Virginia; his brother Mazen Farouki, 73, of Boyce, Virginia; and Salah Maarouf, 71, of Fairfax, Virginia, were each charged in an indictment filed in the District of Columbia with two counts of major fraud, one count of conspiracy to violate the restrictions on doing business with Iran, four counts of substantive violations of those restrictions, and one count of conspiracy to commit international money laundering.  The defendants made their initial appearance on Nov. 29 before Judge G. Michael Harvey.  All were arraigned and pleaded not guilty.  The next hearing is scheduled for Dec. 6 before Judge Trevor N. McFadden.

The indictment alleges that Abul Huda Farouki was the chief executive officer of Anham FZCO, a defense contractor based in the United Arab Emirates (UAE), which maintained offices in Dubai, UAE, Jordan and the United States.  Mazen Farouki was the President and Founder of Unitrans International Incorporated, an international logistics company with close ties to Anham.  Defendant Salah Maarouf operated a company that procured goods and services for Anham. 

According to the indictment, on June 22, 2012, the U.S. Department of Defense awarded Anham an $8 billion contract to provide food and supplies to U.S. troops in Afghanistan known as the “SPV-A contract.”  As part of the bidding process, the defendants allegedly caused Anham to represent that it would build two warehouses in Afghanistan, which Anham would use to provide supplies to U.S. forces.  The indictment alleges that the defendants schemed to defraud the Department of Defense in connection with the SPV-A contract by submitting bids that contained knowingly false estimates of the completion dates for the warehouses and by providing the government with misleading photographs intended to convey that Anham’s progress on the warehouses was further along than it actually was.  Specifically, the indictment alleges that, in February of 2012, the defendants and others caused Anham employees to transport construction equipment and materials to the proposed site of one of the warehouse complexes to create the false appearance of an active construction site.  Members of the conspiracy then photographed the site, provided the photographs to the Department of Defense, and then largely deconstructed the staged construction site.    

The SPV-A contract also required bidders to certify that they abide by the Iran Sanctions Act, which prohibits U.S. citizens and companies from engaging in commercial activity in Iran.  According to the indictment, the defendants conspired to increase Anham’s profits in connection with the SPV-A contract by shipping warehouse building materials to Afghanistan via Iran, instead of using more costly, but legal, routes.  According to the indictment, after learning that the Wall Street Journal was planning to run a story detailing Anham’s practice of shipping materials through Iran, Abul Huda Farouki sent an email to a senior Department of Defense official, which falsely claimed that senior management at Anham had been unaware that the transshipments through Anham had taken place. 

In addition to the SPV-A contract, the indictment alleges that the defendants schemed to defraud the Department of Defense with respect to the National Afghan Trucking (NAT) contract, which was a $984 million contract that required Anham to supply trucking services to the U.S. Military in Afghanistan.  As with the SPV-A contract, the NAT contract required bidders to certify compliance with laws concerning sanctions placed on Iran.  According to the indictment, rather than ship trucks to Afghanistan using legal but relatively expensive routes, the defendants conspired to cut costs by transporting vehicles through Iran.  The indictment alleges that the defendants’ conduct violated laws prohibiting fraud, commercial activity with Iran, and international money laundering.      

The charges in the indictment are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by HSI Washington, DC and by investigators at SIGAR.  Trial Attorneys James Gelber and Danny Nguyen of the Criminal Division’s Fraud Section are prosecuting the case.

A Houston, Texas doctor was sentenced to 60 months in prison followed by three years of supervised release today for his role in a fraudulent medical clinic that ran costly, unnecessary diagnostic tests.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. 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 Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Dallas Regional Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.

Faiz Ahmed, M.D., 66, of Houston, was sentenced by U.S. District Judge Gray H. Miller of the Southern District of Texas.  Judge Miller also ordered the defendant to pay $4,192,156 in restitution.  Ahmed was found guilty following a six-day trial in 2017 of one count of conspiracy to commit healthcare fraud and seven counts of healthcare fraud.

Ahmed and eight co-defendants engaged in a conspiracy to falsely bill Medicare and Medicaid for medically unnecessary diagnostic tests.  According to evidence admitted at trial, Ahmed agreed to approve the unnecessary testing and allowed his physician number to be used  to fraudulently bill the Medicare program.  As a result of the overall conspiracy, Medicare and Medicaid were billed approximately $13 million and paid out approximately $9 million in false claims.

Eight others have pleaded guilty for their respective roles including Mkrtich Yepremian, 61; Bompa Mbokoso Mompiere, 59; Michael Wayne Wilson, 49; Jermaine Doleman, 41; Harding Dudley Ross, 64; Eric Johnson, 64; Ann Marie Rocha, 51; and Eddie Wayne Taylor, 59, all of Houston. These defendants have all been sentenced.          

This case was investigated by the FBI, HHS-OIG and the Texas Attorney General’s Medicaid Fraud Control Unit.  Trial Attorney Jason Knutson of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Suzanne Bradley formerly of the Southern District of Texas prosecuted 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. 

A South Florida pharmacist was sentenced to 78 months in prison today for his role in a $5 million compounding pharmacy 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, Special Agent in Charge Shimon R. Richmond of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, Special Agent in Charge John F. Khin of the Department of Defense Office of Inspector General – Defense Criminal Investigative Service’s (DCIS) Southeast Field Office and Florida Attorney General Pam Bondi made the announcement.

Stephen Chalker, 42, of Wellington, Florida, was sentenced by U.S. District Judge Donald M. Middlebrooks of the Southern District of Florida, who also ordered Chalker to pay $4,980,679.50 in restitution jointly and severally and a forfeiture money judgment of $244,134.  After a four-day trial before Judge Middlebrooks, Chalker was convicted by a jury in West Palm Beach, Florida, on Sept. 7, 2018 of one count of conspiracy to commit health care fraud and two counts of health care fraud.  

According to evidence presented at trial, from approximately September 2014 to August 2016, Chalker engaged in a scheme to defraud Medicare, TRICARE and Medicaid by submitting false and fraudulent claims for compounded drugs and other prescription medications that were not medically necessary and/or never provided.  The evidence established that in his role as the licensed pharmacist-in-charge of Pop’s Pharmacy, a now-defunct pharmacy in Deerfield Beach, Florida, Chalker submitted or caused the submission of high-dollar claims for expensive pain and scar creams that patients did not want, did not need and in some cases did not receive.  Chalker, as pharmacist-in-charge, created the formulas for the fraudulent compounded pain and scar creams to be filled by Pop’s Pharmacy in order to maximize profits for Pop’s Pharmacy from insurance reimbursement, and not for patient care.  Chalker and his co-conspirators ran a nationwide telemarketing and telemedicine scheme in which there was no real patient-prescriber relationship or actual patient care, the evidence showed.

The evidence established that as a result of claims submitted in connection with the scheme, Medicare, TRICARE and Medicaid made payments totaling nearly $5 million.

Two other defendants have been charged in this case.  Elaina Liva, 66, of Pompano Beach, Florida, pleaded guilty and was sentenced on Nov. 1, 2018 to 24 months in prison and was ordered to pay $4,980,679.50 in restitution jointly and severally.  Chris Liva, 40, the owner of Pop’s Pharmacy, pleaded guilty and was sentenced on Nov. 14, 2018 to 48 months in prison and was ordered to pay $4,980,679.50 in restitution jointly and severally.  (40 months of his 48-month sentence will run concurrently with a 78-month health care fraud sentence imposed on Liva on June 19, 2018 in a health care fraud case prosecuted in the Northern District of Ohio, United States v. Physicians Surgical Group, LLC et al., 14-CR-00447-ADAMS). 

This case was investigated by the FBI, HHS-OIG, DCIS and the State of Florida Medicaid Fraud Control Unit.  Trial Attorney Jim Hayes of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Leslie Wright of the District of Massachusetts (formerly a Fraud Section Trial Attorney) prosecuted 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.

A pharmacist licensed by the State of Florida was sentenced today to 78 months in prison for her participation in a scheme involving the payment of approximately $3.4 million in fraudulent claims by TRICARE, Medicare, and private insurance programs for compounded creams that were medically unnecessary, procured through illegal kickbacks, and otherwise not eligible for reimbursement. 

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, 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 and Special Agent in Charge John F. Khin of the Department of Defense Office of Inspector General – Defense Criminal Investigative Service (DCIS)’s Southeast Field Office made the announcement.

Marjorie Robinson, 61, of Wilton Manors, Florida, was sentenced by Chief U.S. District Judge K. Michael Moore of the Southern District of Florida.  Chief Judge Moore also ordered Robinson to pay $3.4 million in restitution, jointly and severally with her co-conspirators, and to forfeit the same amount.  Robinson pleaded guilty in September 2018 to one count of conspiracy to commit health care fraud.

According to admissions made as part of her plea agreement, from approximately 2013 to 2016, Robinson was a one-third owner of A.S.C. Pharmacy, Inc. (ASC), a now-defunct compounding pharmacy in Miami where Robinson worked as the pharmacist-in-charge.  Under Robinson’s ownership and direction, ASC designed and manufactured compounded creams by selecting certain ingredients not based on individualized patient need, but rather to maximize financial reimbursement to ASC from government and private insurance programs.  To carry out the fraudulent scheme, Robinson agreed with her co-conspirators to pay kickbacks to doctors and patient recruiters in exchange for prescriptions for ASC’s medically unnecessary compounded creams and to waive patient co-payments.  As a result of fraudulent claims submitted in connection with the scheme, TRICARE, Medicare and private insurance programs paid ASC approximately $3.4 million.   

Robinson was charged along with co-defendants Laszlo Teleszky, M.D., 68, of New Port Richey, Florida; Sheila Arucri, 57, of Davie, Florida; and Todd Schreier, 34, of Russell, Kentucky.  Teleszky, Arcuri and Schreier each pleaded guilty to conspiracy to commit health care fraud.  Teleszky and Arucri were sentenced on Nov. 27 to serve 16 months and 12 months and one day in prison, respectively.  Schreier is awaiting sentencing.

Ascanio Serna Jr. and Ascanio Serna Sr., both additional co-owners of ASC, were charged separately in this case.  Ascanio Serna Jr. pleaded guilty in August 2017 and was sentenced to serve 64 months in prison.  Ascanio Serna Sr. pleaded guilty in August 2018 and was sentenced to serve 37 months in prison.

The FBI, HHS-OIG, and DCIS 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.  Trial Attorney David Snider of the Fraud Section is 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.

A seller of identity documents was arraigned today, after being extradited from El Salvador, on a superseding indictment charging one count of conspiracy to possess and transfer identity documents, one count of conspiracy to commit human smuggling for financial gain, and 40 counts of aggravated identity theft, in relation to a scheme to traffic the identities of Puerto Rican U.S. citizens and corresponding identity documents.  Judge Bruce McGiverin ordered the defendant detained.  The detention hearing and arraignment are scheduled for Dec. 11.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Acting Director Ronald D. Vitiello of U.S. Immigration and Customs Enforcement (ICE) and Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service made the announcement.

Jose Armando Pavon Salazar (Pavon), 36, a citizen of Honduras, was arrested in El Salvador in January 2018 on an Interpol Red Notice and extradited to the United States on Nov. 28, to face identify fraud charges in the District of Puerto Rico.  Pavon had been a fugitive since March 22, 2012, when a federal grand jury sitting in the District of Puerto Rico returned a 50-count superseding indictment charging Pavon and 52 other defendants with offenses involving a massive identity fraud scheme. 

The superseding indictment alleges that between April 2009 and January 2012, Pavon and his co-conspirators operated an extensive black market identity fraud scheme.  The superseding indictment alleges that conspirators located in the Savarona area of Caguas, Puerto Rico, (Savarona suppliers) obtained Puerto Rican identities and corresponding identity documents. Conspirators, such as Pavon, in various locations throughout the United States (identity brokers) solicited customers. The identity brokers allegedly sold social security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set. The indictment alleges that identity brokers, including Pavon, ordered the identity documents from Savarona suppliers, on behalf of the customers, by making coded telephone calls, including using terms such as “shirts,” “uniforms” or “clothes,” to refer to identity documents.  Specifically, the brokers asked for “skirts” for female customers and “pants” for male customers in various “sizes,” which referred to the ages of the identities sought by the customers.

According to the superseding indictment, the Savarona suppliers generally requested that customers’ initial payments be sent by the identity brokers through a money transfer service to persons whose names were provided by the Savarona suppliers.  Savarona suppliers allegedly retrieved the payments from the money transfer service and then sent the identity documents to the brokers using express, priority or regular U.S. mail.  The superseding indictment alleges that various conspirators sent or received money and mail parcels.  The conspirators frequently confirmed sender names and addresses, money transfer control numbers and trafficked identities via text messaging.

According to the superseding indictment, once the identity brokers received the identity documents, they delivered the documents to the customers and obtained second payments.  The brokers generally kept the second payments for themselves as profit.  Some identity brokers allegedly assumed a Puerto Rican identity themselves, and used that identity in connection with the trafficking operation.

As alleged in the superseding indictment, the customers generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses.  Some customers allegedly obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.

To date, dozens of persons have been convicted in connection with the scheme. 

Trial Attorney Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section is prosecuting the case.  The U.S. Attorney’s Office of the District of Puerto Rico is providing assistance in this matter.  The Criminal Division’s Office of International Affairs handled the extradition in this matter

The charges in the superseding indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html.  Anyone who believes their identity may have been compromised in relation to this investigation or who may have information about particular crimes in this case should call the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or use its online tip form at www.ice.gov/tipline.

Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website at www.ftc.gov/idtheft.  Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html, www.ssa.gov/pubs/10064.html and www.irs.gov/privacy/article/0,,id=186436,00.html.

A federal grand jury in St. Louis indicted four St. Louis Metropolitan Police Department (SLMPD) Police Officers for their conduct in connection with the arrest and assault of a fellow SLMPD police officer who was working undercover in downtown St. Louis during last year’s protests following the acquittal of a former SLMPD officer of a first-degree murder charge brought by the State of Missouri relating to the shooting death of a civilian.

The indictment charges Officers Dustin Boone, 35, Bailey Colletta, 25, Randy Hays, 31, and Christopher Myers, 27, with various felony charges, including deprivation of constitutional rights, conspiracy to obstruct justice, destruction of evidence, and obstruction of justice.

“Law enforcement officers have an important duty to protect the members of the communities they serve and to enforce the law,” said Assistant Attorney General Eric Dreiband. “The Justice Department will continue to investigate and prosecute matters involving allegations of federal criminal civil rights violations.”

“These are serious charges and the vigorous enforcement of civil rights is essential to maintaining public trust in law enforcement,” said U.S. Attorney Jeff Jensen. “The SLMPD recognized the importance of this investigation and its leadership has cooperated at every turn. I continue to have great confidence in the brave and honorable men and women of the SLMPD, Chief John Hayden, and Public Safety Director Judge Jimmie Edwards.”

“I wish to commend SLMPD leadership for its cooperation and the support of this investigation. Law enforcement and the public have a common interest in identifying and holding accountable those who dishonor the badge,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “To that end, I am encouraging people to contact the FBI if you are a witness in this case.”

According to the indictment, in the days and weeks that followed the acquittal, which occurred on Sept. 15, 2017, there were protests throughout the City of St. Louis. In anticipation of protests, SLMPD activated its protest-response unit, the Civil Disobedience Team (CDT), detailing more than 200 SLMPD officers to CDT. SLMPD officers assigned to CDT were tasked with controlling the crowd as needed and arresting those individuals for whom there was probable cause to believe that they had committed crimes. Defendants Boone, Colletta, Hays, and Myers were all assigned to CDT and were working in their capacity as SLMPD officers during the protests. The listed victim in the indictment, L.H., a 22-year veteran SLMPD officer, was also working during the protests, but was doing so in an undercover capacity in order to record and document criminal activity so that other SLMPD officers could lawfully arrest individuals who were committing crimes.

Count One of the indictment charges defendants Boone, Hays, and Myers with willfully violating L.H.’s constitutional rights when they used unreasonable force on L.H., actions that resulted in bodily injury to L.H. and included the use of a dangerous weapon: shod feet and a riot baton. The indictment specifically alleges that Boone, Hays, and Myers threw L.H. to the ground and then kicked and struck L.H. while he was compliant and not posing a physical threat to anyone.

Count Two also charges defendants Boone, Hays, and Myers with conspiracy to obstruct justice for conspiring and agreeing to engage in misleading conduct toward witnesses to prevent information about their criminal conduct from reaching federal authorities.

Count Three of the indictment also charges defendant Myers with destruction of evidence for knowingly destroying and mutilating L.H’s cellular phone with the intent to impede, obstruct, and influence the investigation into the arrest and assault of L.H.

Count Four charges defendant Colletta with corruptly attempting to obstruct, influence, and impede federal grand jury proceedings by engaging in a series of misleading assertions and false statements when she testified before the grand jury.

Count One carries a maximum penalty of 10 years in prison. Counts Two, Three, and Four each carry maximum penalties of 20 years in prison. All four counts carry a maximum fine of $250,000.

An indictment is merely an accusation and the defendants are presumed innocent until and unless proven guilty.

This case is being investigated by the St. Louis Division of the FBI and is being prosecuted by Assistant United States Attorney Reginald Harris of the U.S. Attorney’s Office, Special Litigation Counsel Fara Gold, and Trial Attorney Emily Savner of the Department of Justice Civil Rights Division Criminal Section.

A former owner of Banco Peravia bank in the Dominican Republic was sentenced to three years in prisontoday for his role in a billion-dollar money laundering scheme involving currency exchange.

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 Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI's Houston Field Office, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s (FDIC) Washington, D.C. Office made the announcement.

Gabriel Arturo Jimenez Aray (Jimenez), 50, a Venezuelan citizen residing in Chicago, Illinois and former owner of Banco Peravia bank, was sentenced today to three years in prison by U.S. District Judge Robin L. Rosenberg of the Southern District of Florida. Jimenez pleaded guilty under seal on March 20, 2018 to one count of conspiracy to commit money laundering.  As part of his guilty plea, Jimenez admitted that, as part of the scheme, he conspired with co-conspirator Raul Gorrin Belisario, 50, and others to acquire Banco Peravia, through which he helped launder bribe money and scheme proceeds.  Jimenez and his co-conspirators made the decision to use Banco Peravia to pay bribes to Venezuelan government officials in exchange for contracts to conduct currency exchange schemes and to launder the money obtained from running those currency exchange schemes.  Jimenez facilitated illegal transactions and bribe payments to foreign officials and others via bank issued credit cards, cash disbursements, wire transfers and other financial transactions, he admitted. 

HSI Miami, HSI Houston, HSI Boston, FBI Miami and the FDIC investigated this case.  This case is being prosecuted by Trial Attorneys Vanessa Sisti Snyder, Paul A. Hayden and John-Alex Romano of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Michael B. Nadler and Nalina Sombuntham of the Southern District of Florida.  The Criminal Division’s Office of International Affairs provided significant assistance in this matter.  The Policía Nacional (Spanish National Police) also provided significant 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.

The Department of Justice today announced that on Nov. 29, the Madoff Victim Fund (MVF) began its third distribution of $695.4 million in funds forfeited to the U.S. Government in connection with the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme, bringing the total distributed to nearly $2 billion.  These funds will be sent to over 27,000 victims across the globe, bringing their total recovery to 56.65 percent. This distribution represents the third in a series of payments that will eventually return over $4 billion to victims as compensation for losses they suffered from the collapse of the BLMIS.  The MVF has received over 65,000 petitions from victims in 136 countries. 

Acting Attorney General Matthew Whitaker, Assistant Attorney General Brian A.  Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Geoffrey S. Berman for the Southern District of New York made the announcement. 

“Bernie Madoff’s scheme devastated retirement and pension funds, charitable organizations, and thousands of individual investors spread across 49 States, the District of Columbia, and 121 other countries,” said Assistant Attorney General Benczkowski.   “The payments announced today could not have happened without the prosecutors’ relentless pursuit of proceeds of Madoff’s fraud through civil forfeiture—and, as a result of their efforts and those of the Criminal Division’s Money Laundering and Asset Recovery Section, victims who would not have seen a dime in other compensation programs will now recover more than half of their losses.”

“Bernie Madoff committed history’s largest Ponzi scheme,” said U.S. Attorney Berman.  “This Office prosecuted Madoff and others who helped perpetrate his fraud, and we assisted in recovering billions of dollars in proceeds from the fraud.  Today’s payment of more than $690 million is this Office’s third installment in a series of distributions that represent our ongoing commitment to find relief for victims of Madoff’s heinous crimes.”

 “While today’s distribution of funds is indeed significant in scope, we understand no amount of money could ever restore the damage done by Madoff as a result of his selfish behavior and unforgivable financial crimes,” said FBI Assistant Director William F. Sweeney, Jr.  “To all of his many victims and their families, we realize this gesture may not provide the consolation necessary to remove the pain and suffering you have been brought to bear, but we are hopeful it provides some sense of relief, and we remain committed to achieve justice for all victims of inexcusable financial crimes.”

For decades, Bernard L. Madoff used his position as Chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions from his clients.  On March 12, 2009, Madoff pleaded guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family and select members of his inner circle.  On June 29, 2009, U.S. District Judge Denny Chin sentenced Madoff to 150 years in prison for running the largest fraudulent scheme in history.  Of the approximately $4.05 billion that will be made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased Madoff investor Jeffry Picower.  An additional $1.7 billion was collected as part of a Deferred Prosecution Agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action.  The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family, and from civil and criminal forfeiture actions against Bernard L. Madoff, Peter B. Madoff and their co-conspirators.

The MVF’s payouts would not have been possible without the extraordinary efforts of the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section, the U.S. Attorney’s Office for the Southern District of New York, and the FBI in the prosecution of these crimes and the recovery of assets supporting the forfeiture in this case.  The MVF is overseen by Richard Breeden, former Chairman of the U.S. Securities and Exchange Commission, in his capacity as Special Master appointed by the Department of Justice to assist in connection with the victim remission proceedings.

More information about MVF and its compensation to victims of BLMIS is available on the MVF website at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions.  Further questions may be directed to the MVF at 866-624-3670 or [email protected].

On World AIDS Day 2018, the Department of Justice reaffirms its commitment to ensuring that people living with Human Immunodeficiency Virus (HIV) and Acquired Immune Deficiency Syndrome (AIDS) can enjoy lives free from stigma and discrimination.  By enforcing civil rights laws such as the Americans with Disabilities Act (ADA), and educating members of the public on their rights and responsibilities under the law, the Department seeks to ensure that the more than one million Americans with HIV and AIDS can live with dignity and respect.  In recognizing World AIDS Day 2018, Eric Dreiband, Assistant Attorney General for the Civil Rights Division, stated:

“The Department of Justice is proud to play a leading role in safeguarding the civil rights of those living with HIV and AIDS.  Discriminatory treatment of people with HIV and AIDS is contrary to the law and our nation’s ideals.  On this day, the Civil Rights Division reaffirms its commitment to protecting the civil rights of all individuals.”

The Civil Rights Division’s enforcement efforts over the last year have helped ensure that people with HIV and AIDS are not turned away when seeking medical treatment.  In December 2017, the Department entered into a settlement agreement with a physician’s office based on allegations that a prospective patient was turned away because she has HIV.  The agreement required the practice to train its employees on their obligations under the ADA and to pay $35,000 in damages and civil penalties. 

The Department has also focused on combatting the unfounded stereotypes and misinformation about HIV and AIDS that lead to unlawful discrimination.  In March 2018, the Department reached a settlement agreement with a correctional facility in Louisiana based on its segregation of a detainee for approximately six months because he has HIV.  The agreement ensures that the facility will no longer segregate individuals on the basis of their HIV status.  In addition, it requires the adoption of nondiscrimination policies, designation of an ADA coordinator, training, and payment of $27,500 in damages to the complainant. 

Further, the Department has continued its efforts to educate people living with HIV and AIDS, businesses, state and local governments, and public employers on rights and responsibilities under the ADA.  In the past year, Department staff have met with organizations serving people living with HIV and AIDS in cities nationwide, providing outreach and critical information to affected populations.  The Department also provides technical assistance and responds to questions from individuals and covered entities through our ADA Information Line at 800-514-0301 (voice) or 800-514-0383 (TTY).

On World AIDS Day 2018, we remember those who have lost their lives to AIDS.  In their memory, we will continue the enforcement, education, and outreach efforts that are so vital to the many Americans across our country who are living with HIV and AIDS. 

To learn more about the Department’s work, please visit www.ada.gov/hiv.

          SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant ALFRED LARIOZA MALIT, JR., age 36, from Sinajana, was sentenced in District Court to a term of 87 months imprisonment for attempted possession of methamphetamine with intent to distribute, in violation of 21 U.S.C. §§ 841(a)(1) and 846. The Court also ordered three years of supervised release following Malit’s term of imprisonment, 50 hours of community service, and payment of a mandatory $100.00 special assessment fee. Additionally, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.

          During a routine inspection of DHL parcels by the Guam Customs and Quarantine Agency (GCQA), officers discovered methamphetamine hidden inside speakers within a package. Law enforcement then conducted a controlled delivery of the package. Malit, along with Glenn Felix, claimed the package at the DHL office. Malit was arrested in his vehicle upon indication that the package had been opened. Laboratory analysis determined that the substance contained 345.9 gross net grams of methamphetamine with a purity level of at least 98%.

          The investigation was conducted by the Department of Homeland Security, Homeland Security Investigations and Guam Customs & Quarantine Agency. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Administration also assisted in the control delivery. The case was prosecuted by Assistant U.S. Attorney Rosetta San Nicolas.

The U.S. Department of Justice today announced the opening of the grant solicitation period for comprehensive funding to Indian Country to support crime prevention, victim services, and coordinated community responses to violence against native women.

The Department’s FY 2019 Coordinated Tribal Assistance Solicitation, or CTAS, posts today online at www.justice.gov/tribal/open-solicitations. The solicitation contains details about available grants and describes how federally-recognized tribes, tribal consortia and Alaska Native villages can apply for the funds.

“Public safety professionals serving American Indian and Alaska Native communities frequently find themselves under-resourced and over-extended,” said Principal Deputy Associate Attorney General Jesse Panuccio. “This funding will give tribal officials the tools they need to fight violent crime, protect their citizens, serve victims, and deliver justice.”

The funding from the Department of Justice’s Bureau of Justice Assistance (BJA), Office for Juvenile Justice and Delinquency Prevention (OJJDP), Office for Victims of Crime (OVC), Office of Community Oriented Policing Services (COPS Office), and the Office on Violence Against Women (OVW) can be used to for a variety of public safety and justice-related projects and services. Funds can be used to enhance law enforcement; bolster adult and juvenile justice systems; prevent and control juvenile delinquency; serve native victims of crimes such as child abuse, sexual assault, domestic violence, and elder abuse; improve responses to violence against native women; and support other efforts to combat crime.

New to FY 2019 CTAS is funding designated specifically to address violent crime in native communities (Purpose Area 10). Additionally, the Comprehensive Tribal Victim Assistance Program will be replaced by the Tribal Victim Services Program (Purpose Area 7) in FY 2019. This new program will provide funding to a higher number of applicants and provides funding for a broad range of activities, including a needs assessment, strategic planning, program development and implementation, program expansion, and other actions to address the victim service needs of tribes.

Applications for CTAS are submitted online through the Department’s Grants Management System, or “GMS.” Applicants must register with GMS prior to submitting an application. The application deadline is 9 p.m. EDT, Feb. 26, 2019.  Applicants will submit a single application and select from any or all of the 10 competitive grant programs, referred to as “purpose areas.” This approach allows the Department’s grant-making components to consider the totality of a tribal nation’s overall public safety needs.  

The 10 purpose areas are:

• COPS Office’s Public Safety and Community Policing
• Comprehensive Tribal Justice Systems Strategic Planning
• BJA’s Tribal Justice Systems
• BJA’s Tribal Justice System Infrastructure Program
• OVW’s Violence Against Women Tribal Governments Program
• OVC’s Children’s Justice Act Partnerships for Indian Communities
• OVC’s Tribal Victim Services Program
• OJJDP’s Juvenile Tribal Healing to Wellness Courts
• OJJDP’s Tribal Youth Program
• BJA’s Addressing Violent Crime in Native Communities

Fact sheets detailing each of the individual purpose areas can be found online at: www.justice.gov/tribal/grants. The Department will also facilitate a series of webinars to guide applicants through the CTAS application requirements. Details, including how to register for these webinars, will be made available online in coming weeks at www.justice.gov/tribal/open-solicitations.

Additionally, tribes and tribal consortia may also be eligible for non-tribal federal grant programs and are encouraged to explore other funding opportunities, which may be found at DOJ’s Tribal Justice and Safety website at www.justice.gov/tribal/open-solicitations or the www.grants.gov website.

In FY 2018, the Department funded 125 tribes with 225 awards across nine grant programs totaling more than $113 million.

CTAS is administered by the Department’s Office of Justice Programs, Office of Community Oriented Policing Services and Office on Violence Against Women.

Today’s announcement is part of the DOJ’s ongoing initiative to increase engagement, coordination and action on public safety in tribal communities.

The former vice president of a now-bankrupt public air charter operator was sentenced to 94 months in prison today for her role in a scheme to steal millions of dollars in passenger money for future travel from an escrow account, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Regional Special Agent in Charge Douglas Shoemaker of the U.S. Department of Transportation Office of the Inspector General’s (DOT-OIG).

Kay Ellison, 58, of Edenton, North Carolina, was sentenced by U.S. District Judge Susan D. Wigenton of the District of New Jersey, who presided over the trial.  Judge Wigenton also ordered the defendant to pay $19.6 million in restitution.  Ellison and her co-defendant, Judy Tull, 73, also of Edenton, were both convicted on March 28, after a seven-day trial, of one count of conspiracy to commit wire fraud affecting financial institutions and to commit bank fraud, four counts of wire fraud affecting financial institutions and three counts of bank fraud.  Ellison is the former vice president and managing partner of Myrtle Beach Direct Air and Tours (Direct Air), which was headquartered in Myrtle Beach, South Carolina, with operations in Daniels, West Virginia, and Tull is its former CEO.  Tull is scheduled to be sentenced at a later date.

“Kay Ellison stole tens of millions of dollars of passenger money in a brazen scheme that put a veneer of success on a failing company, and left others holding the bag—until today,” said Assistant Attorney General Benczkowski.  “Her sentence sends a powerful deterrent message—especially to corporate executives—and demonstrates the commitment of the Criminal Division and its law enforcement partners to uncovering and vigorously prosecuting corporate fraud wherever it is found.”

“The sentencing in this investigation demonstrates that the Department of Transportation Office of Inspector General is committed to stopping charter flight operators who intentionally mislead and defraud the traveling public for personal gain,” said DOT-OIG Regional Special Agent in Charge Shoemaker.  “Together with the Department of Justice, we will continue to vigorously pursue and prosecute fraud that erodes consumer confidence in the integrity of transportation-related goods and services.”

According to evidence presented at trial, from October 2007 through March 2012, Ellison and Tull engaged in a scheme to steal passengers’ money for future travel from an escrow account by artificially inflating the amount of money that the defendants claimed they were entitled to receive, and by sending this falsified amount in a letter to the escrow bank telling the escrow bank to release the money.  The evidence further established that to cover up their fraud, the defendants falsified profit and loss statements to make the company look like it was making money rather than losing money, and sent these falsified documents to credit card companies and banks to trick them into continuing to do business with the company.

Testimony at trial established that two financial institutions incurred losses of nearly $30 million for having to refund thousands of passengers their money that should have been held for them in escrow, but was actually stolen by the defendants as part of their fraud.

Robert Keilman, 73, of Marlboro, New Jersey, Direct Air’s former chief financial officer, pleaded guilty to charges stemming from his role in this scheme and will be sentenced separately. 

This case was investigated by DOT-OIG.  Trial Attorneys Cory E. Jacobs and Michael T. O’Neill of the Criminal Division’s Fraud Section are prosecuting the case. 

The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against complex white collar crime around the country.

A Cedar Lake, Indiana Latin Kings gang member, was sentenced to 324 months in prison followed by five years of supervised release after pleading guilty to conspiracy to commit racketeering activity and conspiracy to possess with intent to distribute cocaine and marijuana for his role and participation in the Latin Kings street gang, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Thomas L Kirsch II for the Northern District of Indiana. 

Sergio M. Robles aka Checko, 30, was sentenced by U.S. District Court Judge Jon E. DeGuilio.  At sentencing, Robles was held responsible for participating in the December 2003 murder of Jonathan Zimmerman in Hammond, Indiana, and the May 2008 murder of Jose Cortez in East Chicago, Indiana. The Latin Kings suspected Zimmerman was involved in a drug transaction with counterfeit currency. Accordingly, Zimmerman was shot and killed by a co-defendant. Jose Cortez was shot to death by another co-defendant because the Latin Kings believed Cortez was a member of a rival street gang. According to documents in this case, Robles possessed a firearm in furtherance of the gang’s activities and was involved in a conspiracy to distribute 150 kilograms of cocaine and 1,000 kilograms of marijuana.

“Today’s 27-year sentence demonstrates that our focused efforts on investigating and prosecuting gang members committing violent acts on the streets of Northern Indiana, past or present, is long from over,” said U.S. Attorney Kirsch.  “Just last week we had a member receive a 28-year sentence.  Our community and law enforcement partnerships are some of the best and we will continue investigating and prosecuting these type of cases.”

According to the third superseding indictment returned on Nov. 16, 2011, the Latin Kings is a nationwide gang that originated in Chicago and has branched out in Indiana and throughout the United States, including to Texas. The Latin Kings is a well-organized street gang that has specific leadership and is comprised of regions that include multiple chapters. The third superseding indictment filed in this case alleges that the Latin Kings gang was responsible for at least 19 murders in the Chicago/Northwest Indiana area and Big Spring, Texas.

In addition to Robles, 19 other co-defendants, including two former Chicago police officers, entered guilty pleas and were previously sentenced for their roles in the racketeering conspiracy. One co-defendant, Martin Anaya, was convicted of racketeering and drug conspiracies at trial and subsequently sentenced to 30 years in prison.

This case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; the Griffith Police Department; the Chicago Police Department; the East Chicago Police Department; the Hammond Police Department; the Highland Police Department; the Houston Police Department and the Lubbock Police Department. This case was prosecuted by the Department of Justice Criminal Division’s Organized Crime and Gang Section (OCGS) and the U.S. Attorney’s Office for the Northern District of Indiana.  Assistant U.S. Attorneys Joseph A. Cooley (formally a Trial Attorney with OCGS) and David J. Nozick prosecuted this case. 

A Baton Rouge, Louisiana-based physician’s assistant pleaded guilty today for his role in a scheme to unlawfully distribute thousands of oxycodone pills.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge Stephen G. Azzam of the U.S. Drug Enforcement Administration (DEA)’s New Orleans Field Division, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement. 

Christopher William Armstrong, 44, of Prairieville, Louisiana, was charged in a June indictment with conspiracy to distribute oxycodone, a Schedule II controlled substance.  Armstrong pleaded guilty before U.S. District Judge John W. deGravelles of the Middle District of Louisiana, who accepted his plea today. 

“Christopher Armstrong abused his position as a licensed physician’s assistant to create fraudulent prescriptions for over 40,000 medically unnecessary oxycodone pills,” said Assistant Attorney General Benczkowski.  “The Department of Justice will continue to combat the opioid crisis by holding to account corrupt medical professionals who distribute illegal prescription opioids for profit.”

 “This conviction is a signal to medical professionals not to abuse your position and put our community at risk,” said U.S. Attorney Fremin.  “We will not tolerate unscrupulous health care workers increasing the supply of unauthorized prescription drugs on our streets.  I want to thank our prosecutors, the Department of Justice’s Medicare Fraud Strike Force, DEA, HHS-OIG, and FBI for their important work on this case.”

According to admissions made as part of his plea agreement, Armstrong was a licensed physician’s assistant employed by Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge, from approximately August 2004 through January 2014.  Armstrong admitted that he logged into the clinic’s computer system and, without authorization, created fraudulent prescriptions for controlled substances such as oxycodone.  He then printed the fraudulent prescriptions and either forged the signatures of the clinic’s physicians on the prescriptions or caused those physicians to unknowingly sign the prescriptions.  Armstrong further admitted that he distributed the fraudulent prescriptions to co-conspirators, who he instructed to fill the prescriptions at pharmacies and return the controlled substances to him in return for cash payments.  Armstrong admitted that in an effort to conceal the scheme, he deleted records of the fraudulent prescriptions from the clinic’s computer system.  As part of his plea, Armstrong admitted that from approximately May 2009 through March 2014, he fraudulently generated prescriptions for at least 40,470 oxycodone pills. 

DEA, HHS-OIG, and FBI investigated the case.  The investigation was further developed by the East Baton Rouge District Attorney’s Office.  Trial Attorneys Katherine Payerle and Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Demetrius D. Sumner of the Middle District of Louisiana are prosecuting the case.   

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

A former Venezuelan national treasurer was sentenced today for his role in a billion-dollar currency exchange and money laundering 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 Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI Houston Field Office, Special Agent in Charge George L. Piro of the FBI Miami Field Office and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s (FDIC) Washington, D.C. Office made the announcement.

Alejandro Andrade Cedeno (Andrade), 54, a Venezuelan citizen residing in Wellington, Florida and a former Venezuelan national treasurer, was sentenced today to 10 years in prison by U.S. District Judge Robin L. Rosenberg of the Southern District of Florida. Andrade pleaded guilty under seal on Dec. 22, 2017 to one count of conspiracy to commit money laundering.  As part of his guilty plea, Andrade admitted that he received over $1 billion in bribes from co-conspirator Raul Gorrin Belisario, 50, and other co-conspirators in exchange for using his position as Venezuelan national treasurer to select them to conduct currency exchange transactions at favorable rates for the Venezuelan government.  Andrade received cash as well as private jets, yachts, cars, homes, champion horses, and high-end watches from his co-conspirators.  As part of his plea agreement, Andrade agreed to a forfeiture money judgment of $1 billion and forfeiture of all assets involved in the corrupt scheme, including real estate, vehicles, horses, watches, aircraft and bank accounts. 

HSI Miami, HSI Houston, HSI Boston, FBI Miami, and the FDIC D.C. investigated this case.  This case is being prosecuted by Trial Attorneys Vanessa Sisti Snyder, Paul A. Hayden and John-Alex Romano of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Michael B. Nadler and Nalina Sombuntham of the Southern District of Florida’s Criminal Division.  The Criminal Division’s Office of International Affairs provided significant assistance in this matter.  The Policía Nacional (Spanish National Police) also provided significant 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.

The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

A former business partner of a U.S. military contractor was sentenced today to 18 months in prison for his role in a years-long scheme to bribe U.S. Army contracting officials stationed at a U.S. military base in Kuwait during the Iraq War.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division, Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit and Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office made the announcement.

Finbar Charles, 62, a citizen of Saint Lucia most recently residing in Baguio City, Philippines, was sentenced by Chief U.S. District Judge Karon O. Bowdre of the Northern District of Alabama.  Chief Judge Bowdre also ordered Charles to forfeit $228,558 in illicit gains.  Charles pleaded guilty in July 2018 to one count of bribery of a federal official.

According to admissions made in connection with his guilty plea, Charles was a business partner of a former U.S. military contractor, Terry Hall.  As Hall’s business partner, Charles admitted that he facilitated Hall and others in providing millions of dollars in bribes in approximately 2005 to 2007 to various U.S. Army officials in exchange for preferential treatment for Hall’s companies in connection with Department of Defense (DOD) contracts to deliver bottled water and construct security fencing to support U.S. troops stationed in Kuwait and Iraq. 

As part of his role in this criminal conspiracy, Charles admitted that he managed bank accounts in Kuwait and the Philippines that he used to receive Department of Defense payments and transfer illegal bribes to various U.S. Army contracting officials, including Majors Eddie Pressley, James Momon, and Chris Murray.  All of those individuals, as well as at least 10 other coconspirators, have pleaded guilty or been convicted of crimes relating to this scheme.  Charles admitted that he falsified loan and consulting agreements to conceal the true nature of the bribe payments to the Army officers, and that he personally received over $228,000 in illicit gains as a result of his participation.  

This case was investigated by the DCIS, the U.S. Army Criminal Investigation Command, the FBI and the Special Inspector General for Iraq Reconstruction.  The Criminal Division’s Office of International Affairs provided substantial assistance in this matter.  The case was prosecuted by Trial Attorneys Peter N. Halpern and Robert J. Heberle of the Criminal Division’s Public Integrity Section.

Deputy Attorney General Rod Rosenstein recently traveled to Dubai, United Arab Emirates, to deliver the keynote address at the 87th INTERPOL General Assembly.

The Deputy Attorney General’s remarks focused on the opportunities and challenges faced by law enforcement in the cyber age, and emphasized the need for member nations to uphold and advance the rule of law. Although the Internet “holds immeasurable promise as a repository of ideas, and as a forum for speech and commerce,” he stated, it also can be “exploited by wrongdoers” “to damage information systems, steal data, commit fraud, violate privacy, attack critical infrastructure, and sexually exploit children. They also launch misleading schemes to influence people’s opinions, seeking to foment division and disrupt democratic processes.” In light of the risks posed by “malicious actors [who] use the Internet for evil ends,” the Deputy Attorney General called out those nations—like Russia—that have refused to extradite cybercriminals and instead have recruited them to carry on their crimes safe from international criminal process.
 

Before an audience of more than 1,000 delegates from over 150 nations, Deputy Attorney General Rosenstein promised that the United States would continue to “expose schemes to manipulate the extradition process” and “identify nations that routinely block the fair administration of justice and fail to act in good faith.” By doing so, he stated, nations around the world can ensure that “cyber criminals . . . find no safe haven, either on the dark web or within national borders.”

The Deputy Attorney General also highlighted “several prominent challenges to the rule of law” within INTERPOL and its member nations, including “the lawless attacks on Sergei and Yulia Skripal and Jamal Khashoggi” and “the disappearance of [former INTERPOL] President Meng Hongwei.” Such events, he said, “give rise to questions about whether our member countries abide by shared principles.” The Deputy Attorney General reminded INTERPOL member nations of their obligation to “support leaders and policies that promote international police coordination and preserve the rule of law—in practice, and not just in theory.”
 

Three days later, INTERPOL member nations answered the call when the General Assembly voted to elect Kim Jong Yang of South Korea as INTERPOL’s next president. The United States had strongly endorsed Mr. Kim in light of his commitment to upholding policies that advance international police coordination and preserve the rule of law.

In addition to delivering the keynote address, Deputy Attorney General Rosenstein met with senior officials from INTERPOL and several member nations in attendance at the General Assembly to discuss opportunities for promoting cooperation between law enforcement partners and the pursuit of justice across international borders.

Prior to the Deputy Attorney General’s trip, teams from the United States and the UAE had completed the latest round of negotiations on a mutual legal assistance treaty between the two countries. Mutual legal assistance treaties allow generally for the United States and its treaty partner to quickly obtain evidence needed for important investigations and trials in both countries. If approved by both countries, this would be the first such treaty between the United States and a Gulf region nation. Deputy Attorney General Rosenstein met with His Excellency Abdul Rahman Al-Baloushi, Director of International Cooperation, UAE Ministry of Justice, to discuss the next steps and other ongoing activities to maintain the robust and positive law enforcement relationship between the two countries.

While in the United Arab Emirates, the Deputy Attorney General met with United States Embassy staff, led by Charge d'Affaires Steve Bondy.

A federal grand jury indicted two clinic workers yesterday for their roles in a scheme involving approximately $5.9 million in allegedly fraudulent Department of Labor claims for unprovided drug screening and improperly coded physical therapy and report writing services.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, Special Agent in Charge Monte A. Cason of the Department of Justice Office of the Inspector General (DOJ- OIG) Dallas Field Office, Special Agent in Charge Christopher Cave of the U.S. Postal Service Office of Inspector General (USPS-OIG) Southern Area Field Office, and Special Agent in Charge Steven Grell of the U.S. Department of Labor Office of Inspector General (DOL-OIG) Dallas Region, made the announcement.

Melissa Sumerour, 47, Waco, Texas and Latosha Morgan, 41, of Dallas, Texas were each indicted on one count of conspiracy to commit health care fraud.  

According to the indictment, from January 2011 to March 2017, Sumerour, Morgan and their co-conspirators allegedly engaged in an “upcoding” scheme to bill DOL for more expensive services than those that were actually performed, if any.  The defendants allegedly defrauded DOL of approximately $5.9 million through fraudulent worker’s compensation claims.  The indictment alleges that Sumerour and Morgan worked at clinics in Temple and Fort Worth, Texas, respectively, which treated almost exclusively DOL patients and that they routinely billed for higher reimbursable services in order to earn bonuses based on the percentage that their clinics billed. 

The charges in the indictment are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The DOJ-OIG, USPS-OIG and DOL-OIG investigated the case.  Assistant Chief Adrienne Frazior 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 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.

The Justice Department today announced that it has settled a Fair Housing Act and Americans with Disabilities Act lawsuit against Defendants Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P. for $11.3 million to resolve allegations that these property owners failed to build 50 apartment complexes in six states and the District of Columbia with accessible features for persons with disabilities. 

Under the agreement, the defendants must spend $8.7 million to retrofit 36 properties that they currently own.  This amount is in addition to $2.4 million in retrofits that had been made to many of the properties after the United States brought suit.  The defendants must also pay $175,000 to compensate victims and up to $25,000 for accessibility retrofits at 14 properties they no longer own.  The defendants also agreed to undergo training, to construct any new multifamily housing in accordance with the Fair Housing Act and Americans with Disabilities Act, and to provide periodic reports to the Justice Department. 

“The Justice Department is committed to ensuring that new multifamily housing is built with the accessible features that are required by law,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “This comprehensive settlement will ensure that equal housing opportunities are afforded to persons with disabilities.”

“The Fair Housing Act and Americans with Disabilities Act ensure that persons with disabilities have access to housing, leasing offices, and related amenities,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “The U.S. Attorney’s Office is committed to vigorously pursuing enforcement of the rights guaranteed by these laws. This settlement is an example of that commitment in the District of Columbia and elsewhere and serves to promote equal access to multi-family housing for persons with disabilities.”

The Fair Housing Act requires that multifamily housing constructed for first occupancy after Mar. 13, 1991, have basic accessible features; the Americans with Disabilities Act requires that places of public accommodations, such as rental offices, at multifamily housing built for first occupancy after Jan. 26, 1993, have accessible features. 

As alleged in the government’s complaint, the defendants built the properties at issue with significant barriers that inhibited access to the units and the associated public and common-use areas.  These barriers include routes to building entrances with steps and excessive slopes, units with electrical outlets and thermostats that are beyond the reach of persons who use wheelchairs, and kitchens and bathrooms with insufficient space for persons who use wheelchairs to maneuver.  The government filed the lawsuit in 2010 against Post Properties, Inc., Post Apartment Homes, L.P., and Post GP Holdings, Inc., which merged with the defendants in 2016.

The FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination may call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact the Department of Housing and Urban Development at 1-800-669-9777.

Acting Attorney General Matthew Whitaker today announced awards of over $56 million in grant funding awarded last month through the Department of Justice’s Office of Justice Programs (OJP) to enhance state, local, and tribal law enforcement safety and wellness. OJP’s Bureau of Justice Assistance and National Institute of Justice awarded grants to law enforcement departments, local jurisdictions, and training, technical assistance and research organizations throughout the United States. The funds will be used to provide services designed to protect officers and improve overall public safety. Acting Attorney General Whitaker announced the grants today during remarks to the Joint Terrorism Task Force in New York City.

"In the Trump administration, we back the blue," Acting Attorney General Whitaker said. "One of President Trump's first Executive Orders was to tell this Department to enhance the safety of America's law enforcement officers--and that is exactly what these grants will do. We are providing them with bulletproof vests, body-worn cameras, training, and health and safety research. These grants awarded last month are helping us to take care of the men and women in blue--because they take care of us every day."

“America’s law enforcement officers often risk life and limb to safeguard our communities, and the stressors of their jobs can cause a heavy emotional toll,” said OJP’s Principal Deputy Assistant Attorney General Matt M. Dummermuth. “In fact, law enforcement officers have high rates of on-the-job injury, psychological illness, and suicide. These awards will provide crucial resources and training to help protect the physical and mental health of those who are dedicated to protecting the safety of our communities.”

The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. Despite this decline, violent attacks on police officers are on the rise. More than 60,000 line-of-duty assaults were committed against officers in 2017, a five percent increase from 2016, according to the FBI.

The Department of Justice is committed to ensuring officer safety. Over the past year, the Department has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make American neighborhoods safer, including the invigoration of Project Safe Neighborhoods and announcement of $30 million to help combat violent crime. Recently, the Department hosted a law enforcement roundtable and announced funds and technical assistance resources to help law enforcement investigate and prosecute hate crimes, and announced a new active shooter training grant to provide multi-disciplinary, scenario-based active shooter training to help better protect and equip first responders across the country.

More than $29.8 million will reimburse jurisdictions for up to 50 percent of the cost of body armor vests purchased for law enforcement officers; $12 million will support law enforcement safety and wellness programs, research and services; and $12.2 million will support the implementation of law enforcement agencies’ body-worn camera programs.

In addition, over $2 million is addressing safety, health and wellness priorities through research and evaluation. These investments include the development of ballistic vests, studies of in-vehicle safety, and the evaluation of less-lethal technologies to increase police and public safety.

For a complete list of individual grant programs, amounts awarded, and the jurisdictions that will receive funding, visit https://go.usa.gov/xPUfH. Additional information about Fiscal Year 2018 OJP grant awards can be found online at https://go.usa.gov/xnqk5.

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.

The Director of INTERPOL Washington—the U.S. National Central Bureau—served as the U.S. Head of Delegation to the 87th INTERPOL General Assembly held November 18-21, 2018, in Dubai, United Arab Emirates. Deputy Attorney General Rod Rosenstein also attended a portion of the gathering. Director Wayne H. Salzgaber led the U.S. team composed of representatives from the Departments of Justice, Homeland Security, State, and Defense, as well as leaders in U.S. State and local law enforcement.

The theme of this year’s gathering is policing in the information age, with sessions addressing how technology will change future threats and how technology can be used by law enforcement to meet these challenges. On the first day of the assembly, Rosenstein amplified the cyber theme of the meeting during prepared remarks presented to the group of international law enforcement officials. He challenged international law enforcement to balance fighting the rise of cybercrime with maintaining the rule of law. “When our successors speak of our time here, give them reason to say that we understood the challenges; we found the solutions; we defended our principles, and we stayed the course to support liberty and justice for all,” he said.

Over the four days, delegates will be updated on counterterrorism, cybercrime, and organized and emerging crime. The General Assembly is composed of delegates appointed by the governments of member countries. As INTERPOL’s supreme governing body, it meets once a year and takes all the major decisions affecting general policy, the resources needed for international cooperation, working methods, finances and programs of activities. The General Assembly also approves new members and elects its Executive Committee, among other matters.

During this assembly, the countries of Kiribati and Vanuatu were approved for membership; while a bid by Kosovo to join was rejected. On the last day, the Assembly elected Kim Yong Yang of the Republic of Korea to serve as INTERPOL president until 2020. Each member country represented has one vote. More than 170 of INTERPOL’s 194 member countries attended the meeting.

A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.

The Department of Justice released today its annual report to Congress, Indian Country Investigations and Prosecutions, which provides a range of enforcement statistics required under the Tribal Law and Order Act, as well as information about the progress of the Department’s initiatives to reduce violent crime and strengthen tribal justice systems.

The report reveals that in 2017, U.S. Attorney Offices prosecuted a majority of Indian country cases presented to them.  U.S. Attorney Offices declined prosecution of a minority of cases presented to them primarily due to insufficient evidence or referral to another prosecuting authority, such as a tribal prosecutor.  The report also shows that the FBI closed 12.5 percent more investigations in 2017 than in 2016 (see detailed findings below).

“The Department of Justice is committed to public safety in Indian country,” said Deputy Attorney General Rod J. Rosenstein.  “We have demonstrated this commitment over the past two years by investing substantial resources and supporting innovative programs that empower federal and tribal prosecutors and build the capacity of tribal justice systems.  Today’s report demonstrates that our work makes a difference.  Lasting public safety improvements in Indian country are best achieved when federal, state, and tribal law enforcement agencies work together.”

“The Justice Department’s Indian Country Investigations and Prosecutions Report reflects that the many coordinated efforts among United States Attorneys and tribal justice officials are making a difference,” said Trent Shores, U.S. Attorney for the Northern District of Oklahoma, and Chairman of the Attorney General’s Advisory Subcommittee on Native American Issues. “Our work continues, and we must be resolute, in order to meet the challenges prevalent in American Indian and Alaska Native communities. In August, the Attorney General's Native American Issues Subcommittee met and renewed our commitment to finding meaningful and practical tools to help put an end to the disproportionate rates of violence afflicting Native Americans.  Among these, the department is expanding the use of cross-deputization agreements, access to criminal databases, funding for juvenile programs serving at-risk native youth, and services to victims and their families. We must continue to work together and find solutions to violent crime and drug trafficking in Indian Country. United States Attorneys are committed to upholding the federal trust responsibility and the rule of law in Indian Country.”

The Trump Administration has strengthened the Department’s commitment to Indian Country by prioritizing the reduction of violent crime throughout the United States—including in Indian Country. This reflects a recognition that Native Americans suffer from persistently high rates of violent crime, particularly domestic and sexual abuse of women and children, and like many communities in the United States, have been hit hard by both opioid and methamphetamine abuse.  

In April 2017, as part of the Department’s efforts under the Task Force on Crime Reduction and Public Safety, Attorney General Jeff Sessions announced a series of actions the Department would take to support law enforcement and maintain public safety in Indian Country.

The Justice Department recognizes that investigating crime and prosecuting those responsible is critical to public safety in Indian Country. To that end, the Justice Department’s partnerships with tribes, as well as all federal, state and local law enforcement, are crucial to success. The Department deploys innovative programs such as the Tribal Access Program, Tribal Special Assistant U.S. Attorneys, and numerous grant programs that enhance partnerships, increase information sharing, build capacity for local criminal justice systems, and provide services to victims of crime.

According to the report, in 2017 implementation of the Violence Against Women Reauthorization Act of 2013 (VAWA 2013) remained an important priority for the Department. Federal prosecutors continued to utilize the federal assault charges created by VAWA 2013.  In Calendar Year (CY) 2017, federal prosecutors filed cases against 139 defendants under VAWA 2013’s enhanced federal assault statutes, which include enhanced sentences for certain crimes of domestic violence such as strangulation and stalking. They obtained 134 convictions (an increase of 30% from CY 2016 (103)). Also in CY 2017, prosecutors filed cases against 43 defendants in Indian country cases using the domestic assault by a habitual offender statute, 18 U.S.C. § 117, and obtained 29 convictions.

Cooperation among federal and tribal law enforcement and victim advocates is key to successfully prosecuting sexual assault crimes in Indian country. As of 2017, every U.S. Attorney Office with Indian country responsibilities has developed federal sexual violence guidelines designed to improve the federal response to sexual abuse in tribal communities.

The report also notes that the Tribal Liaison Program remains one of the most important components of the Department’s efforts in Indian country. TLOA requires that the U.S. Attorney for each district with Indian country appoint at least one Assistant United States Attorney to serve as a Tribal Liaison for that district.  They foster and facilitate relationships between federal and tribal partners that are vital to reducing violent crime. As part of their duties, Tribal Liaisons assist in developing multi-disciplinary teams to combat child abuse, work with SART teams on sexual abuse response, conduct community outreach, and coordinate the prosecution of federal crimes.

The information contained in the report shows the following:

• FBI’s CY 2017 statistics show a 12.5 percent increase in total closed investigations (2,210 total) compared to FBI’s CY 2016 statistics (1,960 total). The FBI has investigative responsibility for federal crimes committed on approximately 200 Indian Reservations. This responsibility is shared concurrently with BIA-OJS and other federal agencies with a law enforcement mission in Indian country
• Approximately 79.5 percent (1,511 out of 1,900) of Indian country criminal investigations opened by the FBI were referred for prosecution.
• Of the 699 Indian country investigations that the FBI closed administratively without referral for prosecution, the primary reason for closing (approximately 21 percent) was that the case did not meet statutory definitions of a crime or U.S. Attorney’s Office (USAO) prosecution guidelines. In addition, analysis of CY 2017 data indicates that 15 percent of investigations closed administratively were closed due to unsupported allegations, meaning no evidence of criminal activity was uncovered during the investigations. Another reason for non-referral (20 percent) was that the deaths under investigations were determined to be the result of accident, suicide, or natural causes.
• 84 percent (141 out of 167) of the death investigations that were closed administratively by the FBI in CY 2017 were closed because the death was due to causes other than homicide (i.e., accidents, suicide, or natural causes).
• In CY 2017, the USAOs resolved 2,390 Indian country matters.
• The majority of Indian country criminal matters resolved by the USAOs in CY 2017 (1,499 out of 2,390) were prosecuted (charges filed in either District or Magistrate Court).
• The USAO declination rate remained relatively steady. USAO data shows that in CY 2017, 37% (891) of all (2,390) Indian country matters resolved were declined. USAOs declined cases at a similar rate in prior years: 34% (903) of all Indian country matters resolved (2,666) in CY 2016; 39% (1,043) of all Indian country matters resolved (2,655) in CY 2015; 34% (989) of all Indian country matters resolved (2,886) in CY 2014; 34% (853) of all Indian country matters resolved (2,514) in CY 2013; 31% (965) of all Indian country matters resolved (3,097) in CY 2012; and 38% (1,042) of all Indian country matters resolved (2,767) in CY 2011.
• The most common reason for declination by USAOs was insufficient evidence (70.9% in CY 2017, 68.0% in CY 2016, 71.7% in CY 2015, 59.6% in CY 2014, 55.6% in CY 2013, and 52% in CY 2012). The next most common reason for declination by USAOs was referral to another prosecuting authority (13.2% in CY 2017, 16.4% in CY 2016, 13.8% in CY 2015, 16.3% in CY 2014, 20.8% in CY 2013, and 24% in CY 2012).

The data presented in this report covers only those offenses reported to the FBI and federal prosecutors. The majority of criminal offenses committed, investigated, and prosecuted in Indian Country are adjudicated in tribal justice systems. In much of Indian Country, tribal law enforcement and tribal justice systems hold criminals accountable, protect victims, provide youth prevention and intervention programs, and confront precursors to crime such as alcohol and substance abuse. These efforts are often in partnership with federal agencies or accomplished with support from federal programs and federal funding opportunities.

Read the entire report at www.justice.gov/tribal/tloa.html

Read about the Justice Department’s efforts to increase public safety in Indian County at www.justice.gov/tribal/accomplishments.html

A Venezuelan billionaire who owns Globovision news network was charged in an indictment unsealed yesterday for his role in a billion-dollar currency exchange and money laundering scheme.  A former Venezuelan national treasurer and a former owner of Banco Peravia bank in the Dominican Republic each pleaded guilty in proceedings unsealed today for their roles in the 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 Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI Houston Field Office, Special Agent in Charge George L. Piro of the FBI Miami Field Office, Special Agent in Charge Peter C. Fitzhugh and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s (FDIC) Washington, D.C. Office made the announcement.

Raul Gorrin Belisario (Gorrin), 50, a Venezuelan citizen with a residence in Miami, Florida, was charged in an indictment filed on Aug. 16, 2018 in the Southern District of Florida with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to commit money laundering and nine counts of money laundering.  The case has been assigned to U.S. District Judge William P. Dimitrouleas of the Southern District of Florida.  Alejandro Andrade Cedeno (Andrade), 54, a Venezuelan citizen residing in Wellington, Florida and a former Venezuelan national treasurer, pleaded guilty under seal on Dec. 22, 2017 before U.S. District Judge Robin L. Rosenberg of the Southern District of Florida to one count of conspiracy to commit money laundering.  Gabriel Arturo Jimenez Aray (Jimenez), 50, a Venezuelan citizen residing in Chicago, Illinois and former owner of Banco Peravia bank, pleaded guilty under seal on March 20, 2018 in the Southern District of Florida before Judge Rosenberg to one count of conspiracy to commit money laundering.  Charges against Andrade and Jimenez were unsealed today. 

The indictment alleges that Gorrin paid millions of dollars in bribes to two high-level Venezuelan officials, including Andrade, to secure the rights to conduct foreign currency exchange transactions at favorable rates for the Venezuelan government.  In addition to wiring money to and for the officials, Gorrin allegedly purchased and paid expenses for them related to private jets, yachts, homes, champion horses, high-end watches and a fashion line.  To conceal the bribe payments, Gorrin made payments through multiple shell companies.  Gorrin allegedly partnered with Jimenez to acquire Banco Peravia, a bank in the Dominican Republic, to launder bribes paid to Venezuelan officials and proceeds of the scheme. 

As part of his guilty plea, Andrade admitted that he received over $1 billion in bribes from Gorrin and other co-conspirators in exchange for using his position as Venezuelan national treasurer to select them to conduct currency exchange transactions for the Venezuelan government.  As part of his plea agreement, Andrade agreed to a forfeiture money judgment of $1 billion and forfeiture of all assets involved in the corrupt scheme, including real estate, vehicles, horses, watches, aircraft and bank accounts.  His sentencing is scheduled for Nov. 27.

As part of his guilty plea, Jimenez admitted that, as part of the scheme, he conspired with Gorrin and others to acquire Banco Peravia, through which he helped launder bribe money and scheme proceeds.  His sentencing is scheduled for Nov. 29.

HSI Miami, HSI Houston, HSI Boston, FBI Miami, and the FDIC D.C. investigated this case.  This case is being prosecuted by Trial Attorneys Vanessa Sisti Snyder, Paul A. Hayden and John-Alex Romano of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Michael B. Nadler and Nalina Sombuntham of the Southern District of Florida’s Criminal Division.  The Criminal Division’s Office of International Affairs provided significant assistance in this matter.  The Policía Nacional (Spanish National Police) also provided significant 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.

The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Defendants Michael Wood, 54, and Mary Wood, 46, of Mullica Hill, New Jersey, were sentenced yesterday in federal court to 20 months in prison and ordered to pay $46,320 in restitution to the victim in this case. A jury convicted both defendants of harboring an alien for financial gain and conspiracy to harbor an alien on June 6, 2017. Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division and Special Agent in Charge Marlon V. Miller of Homeland Security Investigations (HSI) Philadelphia announced the sentences.

According to evidence presented in court and other court documents, in August 2005, the defendants recruited a young Kenyan woman to care for their minor children in New Jersey and arranged for her to enter the United States illegally using a fraudulent British passport. The defendants required the victim to perform domestic work and childcare at their home seven days a week, paying her a mere $200 a month. To conceal the victim’s immigration status from authorities, the defendants prohibited her from leaving their house, except to walk the children to school, and instructed her not to talk to anyone outside of the house and defendants’ family.  In June 2006, members of defendant Mary Wood’s family moved the victim to their homes, where they continued to harbor her and exploit her domestic labor, until the victim managed to leave in 2011.

“The defendants exploited the domestic labor of a young Kenyan woman, for minimal pay, circumventing immigration law,” said Assistant Attorney General Eric Dreiband. “Today’s sentences demonstrate the Department of Justice’s commitment to seeking justice for vulnerable individuals across the country and holding defendants who commit these despicable and unconscionable crimes accountable.” 

“The sentencing of Mr. and Mrs. Wood emphasizes the severity of crimes that oppress victims of unconscionable domestic labor practices,” said Special Agent in Charge Marlon V. Miller, HSI Philadelphia.  “Homeland Security Investigations vigorously pursues those who take advantage of vulnerable victims of forced servitude for their own personal gain.  This case again underscores the importance of educating the public on these schemes, seeking justice for victims and holding violators accountable.”   

Six additional defendants, including members of defendant Mary Wood’s family who harbored the victim from 2006 to 2011, previously pleaded guilty in the Eastern District of Pennsylvania and were sentenced for their roles in the continuing alien harboring and labor exploitation scheme. The defendants were also ordered to pay more than $233,000 in combined restitution to the victim. 

The case was investigated by ICE Homeland Security Investigations Philadelphia and prosecuted by Trial Attorneys Anita Channapati and Shan Patel of the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit.

A resident of Hyattsville, Maryland was sentenced to serve 90 months in prison followed by three years of supervised release for his participation in the racketeering enterprise known as La Mara Salvatrucha, or MS-13.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur for the District of Maryland, Acting Special Agent in Charge Scott Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Division, Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Chief J. Thomas Manger of the Montgomery County Police Department, Chief Henry P. Stawinski III of the Prince George’s County Police Department, Interim Chief Amal Awad of the Hyattsville Police Department, Prince George’s County State’s Attorney Angela D. Alsobrooks and Montgomery County State’s Attorney John McCarthy made the announcement.

Jeffrey Rodriguez, aka Jefry Francisco Portillo Corvera, or “Hyper,” 22, had previously pleaded guilty before the Honorable Judge Paula Xinis in the District of Maryland to conspiracy to participate in a racketeering enterprise.

According to the plea agreement, MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States.  Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement.  MS-13 members and associates are required to commit acts of violence within the gang and against rival gangs.  One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. 

Pursuant to his plea agreement, Rodriguez admitted that from sometime before in or about August 2016, he was a member and associate of the Sailors clique of MS-13.  Rodriguez admitted that on Aug. 9, 2016, he and other MS-13 members and associates planned and conspired to rob two individuals of a pound of marijuana, the sale of which would be used to benefit the Sailors clique.

Specifically, Rodriguez admitted that on Aug. 9, 2016, Rodriguez and a MS-13 co-conspirator entered a vehicle occupied by the two victims under the guise that they were going to purchase a pound of marijuana from the victims.  Rodriguez and his co-conspirator were armed with a firearm and a knife.  Upon attempting to rob the victims, and displaying the firearm, Rodriguez and his co-conspirator became engaged in a violent struggle with the victims.  During the struggle, the victims sustained serious bodily injuries including gunshot and stab wounds.  In addition, both Rodriguez and his co-conspirator sustained gunshot wounds.  After being shot, Rodriguez and his co-conspirator ran from the victims’ vehicle, got into another vehicle in which another MS-13 member was waiting and drove to a local hospital, where Rodriguez was admitted for treatment.

Eight of Rodriguez’s co-defendants remain charged in the sixth superseding indictment with various racketeering violations, drug trafficking conspiracy, and extortion conspiracy.  The trial of the eight remaining defendants is scheduled to commence on March 12, 2019.

An indictment is merely an allegation.  Those defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

HSI Baltimore, FBI Washington Field Office, DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Hyattsville Police Department, the Prince George’s State’s Attorney’s Office, the Hyattsville Police Department, and the Montgomery County State’s Attorney’s Office investigated this case.  Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau, Catherine K. Dick, and Daniel C. Gardner of the District of Maryland are prosecuting this case.

A Baton Rouge, Louisiana-based doctor pleaded guilty today for his role in a scheme to receive approximately $336,000 in illegal health care kickback payments. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement. 

Gray Wesley Barrow, M.D., 58, of Baton Rouge, pleaded guilty to an information charging him with one count of conspiracy to pay and receive health care kickbacks.  He is scheduled to be sentenced on March 1, 2019 by U.S. District Judge Brian A. Jackson of the Middle District of Louisiana, who accepted his plea today. 

Barrow was a co-owner of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge.  According to admissions made as part of his guilty plea, Barrow agreed to send urine specimens collected from his patients to a drug testing laboratory in return for a percentage of the reimbursements paid to the laboratory by health care benefit programs, including Medicare.  As part of his plea, Barrow admitted that from approximately April 2014 through July 2016, he sent specimens collected from his patients to the drug testing laboratory and received approximately $336,000 in disbursements from the laboratory associated with testing for Medicare beneficiaries. 

HHS-OIG and FBI investigated the case.  Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the Middle District of Louisiana are prosecuting the case.  

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

The Justice Department today filed a Statement of Interest in U.S. District Court in South Carolina supporting a church’s claim that the Town of Edisto Beach violated its rights under the First Amendment when the town barred it from renting space at the Town’s Civic Center. 

"The Constitution protects the right of individuals and groups to exercise their religion without discrimination because of their religion,” said Acting Attorney General Matthew Whitaker. “The First Amendment requires that religious individuals and groups have the same opportunity to rent public facilities as other members of the community. The Department of Justice is committed to protecting the First Amendment rights of Americans, including fostering the religious expression of members of all faiths.”

The case, Redeemer Fellowship of Edisto Island v. Town of Edisto Beach, involves a small Christian congregation that sought to rent space for Sunday worship in the Civic Center, which is available for rental by community groups to hold events and activities.  The town responded by enacting a policy barring worship services at the Civic Center, citing separation of church and state concerns.  The town claimed that it wanted to avoid appearing as though they endorsed a religious group.  As a result, the church filed a First Amendment lawsuit to allow it to rent space at the facility.

The Constitution requires that churches be allowed to rent facilities on an equal basis with other community groups.  The Supreme Court held in the landmark case of Widmar v. Vincent (1981), that a university could not “discriminate against student groups and speakers based on their desire to use a generally open forum to engage in religious worship and discussion.”  The United States’ Statement of Interest argues that allowing equal access to all groups, including the church, is required by the First Amendment.  Allowing equal access, the United States argues, ensures the government neutrality toward religious expression that the Constitution requires.

A senior leader of the Aryan Circle (AC) and a gang member were sentenced today for being accessories-after-the-fact to racketeering murder, announced Assistant Attorney General Bryan A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney David C. Joseph of the Western District of Louisiana.

David Wayne Williams, 38, of Sulphur, Louisiana, a senior leader in the gang, was sentenced to serve 157 months in prison and four years of supervised release and Richard Alan Smith, 47, of Little Rock, Arkansas was sentenced to serve 150 months in prison to be served consecutive to his current state charges and three years of supervised release by U.S. District Court Judge Dee D. Drell in the Western District of Louisiana. 

On Aug. 22, 2018, Williams pleaded guilty to the charge of accessory-after-the-fact to racketeering murder of Clifton Hallmark, drug trafficking and weapons possession.  On July 25, 2018, Smith pleaded guilty to the accessory-after-the-fact charge.     

According to the plea agreement, the AC is a race-based, multi-state organization that operates inside and outside of state and federal prisons throughout Texas, Louisiana, and the United States.  The AC was established in the mid-1980s within the Texas prison system (TDCJ).  Recently, the AC’s structure and influence expanded to rural and suburban areas throughout Texas, Louisiana, and Missouri.  The AC emerged as an independent organization during a period of turmoil within the Aryan Brotherhood of Texas (ABT).  The AC was relatively small in comparison to other prison-based gangs, but grew in stature and influence within TDCJ in the 1990s, largely through violent conflict with other gangs, white and non-white alike. 

The plea agreement further alleges that the AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, robbery and threats against those who violate the rules or pose a threat to the organization.  Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.

In pleading guilty to the accessory charge, Williams and Smith admitted to being accessories to the murder of Hallmark on or around July 1, 2016, when a fellow AC member shot Hallmark in the side of his head at point blank range at an AC “church” meeting in Turkey Creek, Louisiana.  Williams and Smith both admitted to being members of the AC criminal enterprise.  Williams admitted to being a senior leader of the gang.

This case is being investigated by an Organized Crime Drug Enforcement Task Force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Louisiana State Police; Evangeline Parish, (LA) Sheriff’s Office; Evangeline Parish District Attorney’s Office; Texas Department of Public Safety; Houston Police Department-Gang Division; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Montgomery County (TX) Precinct 1 Constable’s Office; Indiana State Police; Indiana Department of Corrections; Carrollton (TX) Police Department; Waller (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office and the Tarrant County (TX) Sheriff’s Office.

The case is being prosecuted by Trial Attorney David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Dominic Rossetti of the Western District of Louisiana.

A federal court in Jackson, Mississippi, held that Kavivah Branson, aka Kavivah Bradley, has violated a permanent injunction entered against her on July 3, 2014, which barred her from preparing tax returns for others.

Branson admitted, in documents filed with the court, that she had violated the injunction by directly or indirectly preparing returns for others. She also agreed to pay the United States a total of $55,000 as reimbursement of its investigation expenses and disgorgement of fees she received from refunds claimed on returns she prepared in violation of the injunction. That investigation was undertaken by the Tax Division as part of its effort to monitor the conduct of return preparers who have been enjoined from preparing returns, and hold those who have continued to do so accountable for violating that ban. 

The U.S. District Court for the Southern District of Mississippi ordered Branson to pay these amounts. Also, the court barred her from working at or maintaining any interest in any entity that offers tax preparation services.

The injunction barring Branson from preparing tax returns remains in effect, and the court authorized the United States to continue to monitor her compliance with its orders.

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.

          SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant DOLORES DIANA M.B. WESTFALL, age 37, from Yona, was sentenced in District Court to serve a 77-month term of imprisonment for Attempted Possession with Intent to Distribute Fifty Grams or More of Methamphetamine, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered five years of supervised release following imprisonment and a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.   

          On July 27, 2017, the U.S. Postal Inspector, agents and task force officers with Drug Enforcement Administration intercepted a package in the mail. They discovered approximately 222.6 net grams of methamphetamine hydrochloride (“ice”) in the package. Westfall was also in possession of a methamphetamine pipe and a small Ziploc baggie. The evidence revealed that Westfall attempted to possess the drug with the intent to distribute it to another person.  Westfall used her post office box to receive the ice. She expected to receive some of the drug as payment from the supplier.

          U.S. Attorney Anderson stated, “I applaud law enforcement for their actions in combating sources of illegal drugs. This case demonstrates the benefits of effective partnerships by our federal and local agencies. Our office will continue to vigorously enforce drug laws in an effort to pare back the availability of drugs to users or potential users.”

          This prosecution was the result of a joint investigation by the U.S. Postal Service and Drug Enforcement Administration. Assistant United States Attorney Rosetta San Nicolas prosecuted this case for the United States Attorney’s Office.

A former registered financial advisor previously employed by UBS Financial Services Inc. of Puerto Rico (UBS-PR) pleaded guilty today for his role in a scheme to fraudulently obtain and misuse non-purpose credit lines for purchasing securities, resulting in over $1 million in improperly generated commissions, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Douglas A. Leff of the FBI’s San Juan, Puerto Rico Field Office.

José G. Ramirez-Arone Jr., 60, currently of Fulton, Maryland, previously of San Juan, Puerto Rico, pleaded guilty to one count of bank fraud before U.S. District Judge Thomas F. Hogan of the District of Columbia.  Sentencing has been scheduled for Feb. 8, 2019, before Judge Hogan. 

As part of his guilty plea, Ramirez-Arone admitted that, in his role as a financial advisor, he participated in a scheme in which various of his clients at UBS-PR fraudulently obtained non-purpose credit lines (i.e., credit lines for which purchasing securities was expressly prohibited by an internal UBS-PR policy) offered by UBS Bank USA (UBS-UT), a Utah-based subsidiary of UBS Financial Services, Inc.  He admitted knowing that his clients then misused them by drawing funds from the credit lines for purchasing securities, directly violating the credit lines’ terms of use. 

Ramirez-Arone further admitted that the scheme took advantage of the low interest rate of UBS-UT’s non-purpose credit lines, and the payout interest rate of closed-end funds (CEFs) offered by UBS-PR, which were mainly comprised of Puerto Rican bonds.  Ramirez-Arone admitted that the CEFs had a payout interest rate exceeding the low interest rate of the non-purpose credit lines.  To capitalize on the difference between the low and high interest rates by engaging in arbitrage, Ramirez-Arone advised various clients that they could draw funds from a UBS-UT non-purpose credit line and invest the funds in a UBS-PR CEF, he admitted.

In addition, Ramirez-Arone admitted that, to circumvent the prohibition against purchasing securities with non-purpose credit line funds, and to obscure from UBS-PR the origin of the funds, he advised clients to obtain a UBS-UT non-purpose credit line by misrepresenting in a credit line application the proposed reason for needing the credit line, which was an important piece of information for UBS-UT.  He further admitted that he advised clients—after the credit line was issued—to transfer UBS-UT non-purpose credit line funds to a third-party bank (i.e., outside of the UBS banking system), before transferring the same funds back into the UBS banking system to UBS-PR for investment in a CEF.  This practice diminished UBS-UT’s ability to recognize that funds originating from a UBS-UT non-purpose credit line were later being invested in a UBS-PR CEF.  As a result of at least a portion of his illicit activity, from in or about January 2011 through in or about September 2013, Ramirez-Arone improperly generated approximately $1,225,500 in commissions, he admitted.

This case was investigated by the FBI.  Trial Attorney Cory E. Jacobs of the Criminal Division’s Fraud Section is prosecuting the case.

The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.

Acting Attorney General Matthew Whitaker today released the following statement:

“Today marks the 25th anniversary of the Religious Freedom Restoration Act (RFRA), an important law protecting one of our most fundamental freedoms. RFRA was approved by Congress with overwhelming bipartisan support, passing the House unanimously and approved 97 to 3 in the Senate, and signed into law by President Clinton.

“RFRA ensures that our foundational freedom of religious liberty is protected: the right to believe, worship, and practice our faiths according to the dictates of our consciences. 

“RFRA requires that whenever actions by the federal government would impose a substantial burden on a person’s religious exercise, the government must give reasons for doing so. And unless the government has a compelling reason, and the government action burdens religion no more than is necessary, RFRA requires that the government accommodate religious freedom.

“It is a remarkable thing for any government to impose such restraints on itself. It is much easier for a government to operate in a manner it believes to be most effective and disregard the costs on individual liberty and conscience. The enactment of RFRA was a bold affirmation that religious freedom and freedom of conscience are precious and deserving of protection, even if this may make things harder for the government. 

“The enactment of RFRA was also a re-affirmation of America’s promise to protect religious minorities, which stretches back to George Washington’s promise to the Jewish Congregation in Newport that they would find not only tolerance but equal rights in America, and President Lincoln’s granting of conscientious objector status to Quakers during the Civil War. Minority faiths have been protected by RFRA over the past 25 years.

“Today we celebrate the anniversary of this law and renew our commitment to protecting the freedom of all Americans to exercise their religious convictions openly, in speech and actions. Under President Donald Trump, the Department of Justice will continue defend the rights of people of faith.”