District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Two Traders Plead Guilty to $60 Million Commodities Fraud and Spoofing ConspiracyRead the Press Release
Two former commodities traders of a New York, New York-based financial services firm have pleaded guilty for their participation in a $60 million commodities fraud and spoofing conspiracy that was perpetrated through the U.S. commodities markets. One of the traders also pleaded guilty for his participation in a second commodities fraud and spoofing conspiracy at another financial services firm based in Chicago, Illinois.
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 Jeffrey S. Sallet of the FBI’s Chicago Field Office made the announcement.
Krishna Mohan, 33, of New York, New York, pleaded guilty today to one count of conspiracy to engage in wire fraud, commodities fraud and spoofing. Sentencing is scheduled for Feb. 28, 2019 before U.S. District Judge Gray H. Miller of the Southern District of Texas.
Kamaldeep Gandhi, 36, of Chicago, pleaded guilty on Nov. 2 to two counts of conspiracy to engage in wire fraud, commodities fraud and spoofing. Sentencing is scheduled for Feb. 22, 2019 before U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas.
As part of their pleas, Gandhi and Mohan admitted that, from March 2012 to March 2014, they conspired with Yuchun “Bruce” Mao and others at the first firm (Trading Firm A) to mislead the markets for E-Mini S&P 500 and E‑Mini NASDAQ 100 futures contracts traded on the Chicago Mercantile Exchange (CME) and E-Mini Dow futures contracts traded on the Chicago Board of Trade (CBOT). Gandhi and Mohan further admitted that they and their co-conspirators placed thousands of orders that they did not intend to execute, or “spoof orders,” in order to obtain executions of other orders, or “primary orders,” at better prices, quantities and/or times than otherwise possible, to the benefit of the co-conspirators and Trading Firm A. Gandhi and Mohan further admitted that the United States has calculated that the scheme resulted in market losses of over $60 million.
Also, as part of Gandhi’s plea, he further admitted that, from May 2014 through October 2014, while employed at the second firm (Trading Firm B), he conspired with others to mislead the markets for E‑Mini S&P 500 futures contracts traded on the CME by agreeing to place, and himself placing, hundreds of spoof orders for E-Mini S&P 500 futures contracts in order to create the false and misleading appearance of increased supply or demand. Gandhi further admitted that the United States has calculated that the scheme resulted in market losses of over $1.3 million.
The FBI’s Chicago Field Office is investigating the case. Trial Attorneys Mark Cipolletti, Jeffery Le Riche and Matthew Sullivan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John Lewis of the Southern District of Texas are prosecuting the case. The Commodity Futures Trading Commission’s Division of Enforcement provided substantial assistance in this case and referred this matter to the Department.
Individuals who believe that they may be a victim in these cases should visit the Fraud Section’s Victim Witness website for more information.
Former Precious Metals Trader Pleads Guilty to Commodities Fraud and Spoofing ConspiracyRead the Press Release
A former precious metals trader at a United States bank (Bank) pleaded guilty in a proceeding unsealed yesterday to commodities fraud and a spoofing conspiracy in connection with his participation in fraudulent and deceptive trading activity in the precious metals futures contracts markets.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
John Edmonds, 36, of Brooklyn, New York, pleaded guilty under seal on Oct. 9 in the District of Connecticut to an information charging him with one count of commodities fraud and one count of conspiracy to commit wire fraud, commodities fraud, commodities price manipulation and spoofing. Sentencing is scheduled for Dec. 19 before U.S. District Judge Robert N. Chatigny of the District of Connecticut.
“For years, John Edmonds engaged in a sophisticated scheme to manipulate the market for precious metals futures contracts for his own gain by placing orders that were never intended to be executed,” said Assistant Attorney General Benczkowski. “The Criminal Division is committed to prosecuting those who undermine the investing public’s trust in the integrity of our commodities markets through spoofing or any other illegal conduct.”
“This defendant was involved in manipulating the precious metals commodity markets for several years, and I thank the FBI for its diligent investigation of this matter and its commitment to hold accountable those who use technology to their advantage to cheat these markets.” said U.S. Attorney Durham. “The investigation of deceptive trading practices by others involved in this scheme is ongoing.”
"With his guilty plea, Edmonds admitted he intended to introduce materially false and misleading information into the commodities markets,” said FBI Assistant Director in Charge Sweeney. “By conspiring with his trading partners to place spoof orders, he blatantly attempted to profit off of an unfair market that he helped create. The FBI will continue to work with our partners to insure financial markets remain a level playing field for all investors."
As part of his plea, Edmonds admitted that from approximately 2009 through 2015, he conspired with other precious metals traders at the Bank to manipulate the markets for gold, silver, platinum and palladium futures contracts traded on the New York Mercantile Exchange Inc. (NYMEX) and Commodity Exchange Inc. (COMEX), which are commodities exchanges operated by CME Group Inc. Edmonds and his fellow precious metals traders at the Bank routinely placed orders for precious metals futures contracts with the intent to cancel those orders before execution (the Spoof Orders), he admitted. This trading strategy was admittedly intended to inject materially false and misleading liquidity and price information into the precious metals futures contracts markets by placing the Spoof Orders in order to deceive other market participants about the existence of supply and demand. The Spoof Orders were designed to artificially move the price of precious metals futures contracts in a direction that was favorable to Edmonds and his co-conspirators at the Bank, to the detriment of other market participants. In pleading guilty, Edmonds admitted that he learned this deceptive trading strategy from more senior traders at the Bank, and he personally deployed this strategy hundreds of times with the knowledge and consent of his immediate supervisors.
This case is the result of an ongoing investigation by the FBI’s New York Field Office. Trial Attorney Matthew F. Sullivan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Avi M. Perry of the District of Connecticut are prosecuting the case.
Individuals who believe that they may be a victim in these cases should visit the Fraud Section’s Victim Witness website for more information.
Patient Recruiter Convicted in $1.1 Million Kickback SchemeRead the Press Release
On Friday, Nov. 2, a federal jury found a patient recruiter guilty for her role in a scheme involving approximately $1.1 million in fraudulent Medicare claims for home health care that were procured through the payment of kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy Slater of the FBI’s Detroit Division, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office, and Special Agent in Charge Manny Muriel of the IRS Criminal Investigation (IRS-CI) Detroit Office, made the announcement.
Sophia Eggleston, 56, of Detroit, Michigan, was convicted of one count of conspiracy to receive health care kickbacks and two counts of receipt of health care kickbacks following a three-day trial. Sentencing has been scheduled for Feb. 6, 2019 before U.S. District Judge Bernard Friedman of the Eastern District of Michigan, who presided over the trial.
According to evidence presented at trial, from 2009 to 2012, Eggleston and her co-conspirators engaged in an illegal kickback scheme to defraud Medicare of approximately $1.1 million through fraudulent home health claims. The evidence showed that Eggleston solicited and received kickbacks in exchange for referring Medicare beneficiaries to serve as patients at a home health agency owned by her co-conspirators. Eggleston’s co-conspirators then submitted claims to Medicare for home health services that were purportedly provided to those beneficiaries.
The FBI, HHS-OIG and IRS-CI investigated the case. Trial Attorneys Stephen Cincotta and Howard Locker of the Criminal Division’s Fraud Section 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.
Justice Department to Monitor Compliance with Federal Voting Rights Laws on Election DayRead the Press Release
The Justice Department today announced its Election Day plans for the Nov. 6, 2018 general election. The Civil Rights Division will monitor compliance with the federal voting rights laws by deploying personnel to 35 jurisdictions in 19 states.
“Voting rights are constitutional rights, and they’re part of what it means to be an American,” Attorney General Jeff Sessions said. “The Department of Justice has been entrusted with an indispensable role in securing these rights for the people of this nation. This year we are using every lawful tool that we have, both civil and criminal, to protect the rights of millions of Americans to cast their vote unimpeded at one of more than 170,000 precincts across America. Citizens of America control this country through their selection of their governmental officials at the ballot box. Likewise, fraud in the voting process will not be tolerated. Fraud also corrupts the integrity of the ballot.”
State and local governments have primary responsibility for administering elections in the United States. The Civil Rights Division is charged with enforcing the federal voting rights laws that protect the rights of all citizens to access the ballot on Election Day. Since the passage of the Voting Rights Act in 1965, the Division has regularly monitored all kinds of elections in the field around the country throughout every year to protect the rights of all voters, and not just in federal general elections. On Nov. 6, the Division again will be monitoring in the field around the country.
On Election Day, the Division staff members will be available all day by telephone to receive complaints from the public related to possible violations of the federal voting rights laws (1-800-253-3931 toll free or 202-307-2767 or TTY 202-305-0082). In addition, individuals may also report complaints by fax to 202-307-3961, by email to [email protected], and by a complaint form on the Department’s website: www.justice.gov/crt/votercomplaint.
Allegations of election fraud are handled by the 94 U.S. Attorneys’ Offices across the country and the Criminal Division’s Public Integrity Section. Complaints may be directed to the local U.S. Attorneys’ Office or local FBI office. A list of U.S. Attorneys’ Offices and their telephone numbers can be found at www.justice.gov/usao/find-your-united-states-attorney. A list of FBI offices and their telephone numbers can be found at www.fbi.gov/contact-us.
Complaints related to disruption at a polling place should always be reported immediately to local election officials (including officials in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the Department after local authorities have been contacted.
On Election Day, the Civil Rights Division plans to deploy personnel to 35 jurisdictions in 19 states to monitor for compliance with the federal voting rights laws:
- Bethel Census Area, Alaska;
- Dillingham Census Area, Alaska;
- Kusilvak Census Area, Alaska;
- Yukon-Koyukuk Census Area, Alaska;
- Apache County, Arizona;
- Cochise County, Arizona;
- Maricopa County, Arizona;
- Navajo County, Arizona;
- Sacramento County, California;
- San Mateo County, California;
- DeSoto County, Florida;
- Palm Beach County, Florida;
- Pinellas County, Florida;
- Fulton County, Georgia;
- Gwinnett County, Georgia;
- Buena Vista County, Iowa;
- Ford County, Kansas;
- Lowell, Massachusetts;
- Malden, Massachusetts;
- Clark County, Nevada;
- Washoe County, Nevada;
- Middlesex County, New Jersey;
- Union County, New Jersey;
- Erie County, New York;
- Benson County, North Dakota;
- Rolette County, North Dakota;
- Texas County, Oklahoma;
- Lehigh County, Pennsylvania;
- Pawtucket, Rhode Island;
- Buffalo County, South Dakota;
- Harris County, Texas;
- Tarrant County, Texas;
- Waller County, Texas;
- San Juan County, Utah; and
- Fairfax County, Virginia.
The Civil Rights Division will gather information on, among other things, whether voters are subject to different voting qualifications or procedures on the basis of race, color or membership in a language minority group; whether jurisdictions are complying with the language minority provisions of the Voting Rights Act; whether jurisdictions permit a voter to receive assistance by a person of his or her choice if the voter has a disability or is unable to read or write; whether jurisdictions provide polling locations and voting systems allowing voters with disabilities to cast a private and independent ballot; whether jurisdictions comply with the voter registration list requirements of the National Voter Registration Act; and whether jurisdictions comply with the provisional ballot requirements of the Help America Vote Act. Division personnel will also maintain contact with local election officials.
The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including the Voting Rights Act, the Uniformed and Overseas Citizens Absentee Voting Act, the National Voter Registration Act, the Help America Vote Act, and the Civil Rights Acts. The Division’s Disability Rights Section enforces the Americans with Disabilities Act to ensure that persons with disabilities have a full and equal opportunity to vote. Information about the Americans with Disabilities Act and about how to file a disability related complaint can be found at www.ada.gov. The Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.
Last week, the Justice Department announced efforts to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process. More information about the federal voting rights laws is available on the Civil Rights Division’s website at www.justice.gov/crt/voting-section.
Former St. Martinville, Louisiana, Deputy Chief Found Guilty of Excessive Force, Obstruction, and ConspiracyRead the Press Release
Former St. Martinville, Louisiana, Police Department (SMPD) Deputy Chief of Investigations Codi Dodge, 35, was found guilty today in the Western District of Louisiana of four felony counts, including a civil rights violation for using excessive force against an arrestee, and three counts of obstruction and conspiracy to cover up the incident.
After five days of trial, the jury convicted Dodge of using excessive force on an arrestee, in violation of the arrestee’s Fourth Amendment rights to be free from unreasonable force. The jury also convicted Dodge of obstructing justice by falsifying records related to the unlawful use of force incident, and by conspiring with other members of the St. Martinville Police Department to cover up his actions.
“Illegal conduct by officers who abuse their power and violate the civil rights of the citizens they promise to serve harms the public trust and will not be tolerated,” said Principal Deputy Assistant Attorney General John Gore. “The Department will continue to vigorously enforce our nation’s laws and hold officers who break the law accountable.”
“Law enforcement officers are sworn to uphold and defend the laws of our nation,” said U.S. Attorney David C. Joseph. “When they themselves break those laws, they violate not just the rights of their victims, but also compromise the public's trust in law enforcement. My office will hold them accountable.”
Evidence presented at trial established that, on Aug. 13, 2016, Dodge forced entry into the home of an individual he suspected had stolen from him. After unlawfully entering the individual’s home, Dodge threatened the individual before striking him in the face with a firearm, causing bodily injury. Dodge then arrested the individual, and brought him back to the St. Martinville Police Department, where Dodge continued to threaten him. After learning that the incident had been reported to the FBI, Dodge conspired with other members of the St. Martinville Police Department to falsify reports regarding the incident, and to mislead the FBI in its investigation of the matter.
Dodge faces a statutory maximum of 55 years in prison, though the actual sentence will be set by the court at a later date.
This case was investigated by the FBI’s Lafayette, Louisiana, Resident Agency. The case is being prosecuted by Deputy Chief Bobbi Bernstein and Trial Attorney Tim Visser of the Civil Rights Division and Assistant U.S. Attorney John Luke Walker of the Western District of Louisiana. Trial Attorney Risa Berkower of the Civil Rights Division participated in the investigation of the case.
Former FBI San Diego Paralegal Specialist Sentenced to Prison for Theft of Government FundsRead the Press Release
A former paralegal specialist for the San Diego Division of the FBI was sentenced today to 24 months in prison for embezzling nearly $250,000 in government funds. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge James K. Cheng of the Department of Justice Office of the Inspector General’s (DOJ-OIG) Los Angeles Field Office made the announcement.
Lynn M. Morris, 56, of San Diego, California, pleaded guilty on March 7 to one count of embezzlement of government property. In addition to the prison term, U.S. District Court Judge Larry Alan Burns ordered Morris to pay $278,000 in restitution.
“Lynn Morris capitalized on her position at the FBI to line her own pockets with stolen government funds,” said Assistant Attorney General Benczkowski. “This conviction demonstrates the Department of Justice’s commitment to investigating and prosecuting government employees who abuse their authority. Individuals who violate the public trust will be held accountable.”
“Lynn Morris abused her position for personal gain and betrayed the trust of her FBI colleagues,” said DOJ-OIG Special Agent in Charge Cheng. “The Office of the Inspector General is resolute in its commitment to protecting the integrity of the Department of Justice by investigating those engaged in corruption.”
“After Lynn Morris’ guilty plea in March of this year, the San Diego FBI worked closely with the Department of Justice Office of Inspector General in order to fully investigate the conduct of our employee,” said FBI San Diego Division Special Agent in Charge John Brown. “We were resolute to restoring the integrity and trust that these criminal actions had tarnished by locating every dollar she had stolen from the government.”
According to documents submitted in connection with her plea, between July 2014 and November 2016, Morris embezzled approximately $159,821.90 that belonged to the United States and converted the funds for her own personal use. The funds were held in an account owned by the FBI San Diego Division’s Asset Forfeiture Unit (AFU), where Morris was a paralegal specialist and the AFU’s designated coordinator. The court found that Morris also embezzled $92,010.92 from an additional AFU account and stole $26,351.10 from FBI evidence rooms. Morris admitted that to convert government funds to her own use, she used her knowledge and position within the FBI to withdraw cash from the AFU’s account undetected and deposited portions of the stolen proceeds into her personal checking account.
This case was investigated by the Department of Justice Office of the Inspector General, with assistance from the FBI San Diego Division. Trial Attorneys Marco A. Palmieri and Jessica C. Harvey of the Criminal Division’s Public Integrity Section prosecuted the case.
Florida Tax Return Preparer Convicted of Filing False Income Tax ReturnsRead the Press Release
A Port St. Lucie, Florida, man was convicted by a federal jury today in the U.S. District Court for the Southern District of Florida of ten counts of aiding and assisting in the filing of false income tax returns and three counts of filing false income tax returns announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan.
According to court documents and evidence presented at trial, from 2012 through 2015, Richard Maurival prepared income tax returns for clients that claimed false education credits and false business expenses, and other deductions to inflate by thousands of dollars refunds paid by the Internal Revenue Service. In addition to filing fraudulent income tax returns for his clients, Maurival falsified his own income tax returns, by not fully reporting the fees he earned in his tax preparation business for tax years 2012, 2013, and 2014.
U.S. District Judge James Ivan Cohn for the Southern District of Florida set sentencing for January 17, 2019. The defendant faces a maximum possible sentence of 3 years in prison on each count, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Orshan commended special agents of the Internal Revenue Service Criminal Investigation, who investigated the case, and Tax Division Trial Attorney Grace Albinson and Assistant U.S. Attorney Diana Acosta, who prosecuted the case.
Federal Court Holds West Palm Beach Tax Preparer in ContemptRead the Press Release
On Friday, November 2, 2018, a federal court in West Palm Beach, Florida, held that Renel Herard violated a permanent injunction entered against him on October 18, 2016, which barred him from preparing, filing, or assisting in the preparation or filing of federal tax returns for others.
In March 2017, following an investigation of Herard’s activities, the United States filed a Motion for Order to Show Cause asking the court to hold Herard in civil contempt based on evidence that he was assisting a business located three doors down from his own to prepare returns for his former customers in violation of the injunction against him. 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.
Faced with the evidence against him, Herard admitted that he assisted others to prepare returns in 2017 and agreed to reimburse the United States for the cost of its investigation into his activities. Based on those admissions, the U.S. District Court for the Southern District of Florida found that Herard violated the injunction entered in October, 2016, and held him in civil contempt. For that contempt, the court ordered Herard to pay the United States $52,654 to reimburse the government for the costs that it incurred to investigate Herard’s post-injunction conduct.
Additionally, the court further enjoined Herard from maintaining any interest in, working at, or providing any direct or indirect assistance to an individual or entity that provides tax preparation services.
The injunction barring Herard from preparing tax returns remains in effect, and the court authorized the United States to continue to monitor his 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.
Department of Justice 2018 Election Security Fact SheetRead the Press Release
In anticipation of the upcoming midterm elections on November 6, 2018, the Department of Justice today provided information about its efforts through the Civil Rights Division, the Criminal Division, the National Security Division, and the FBI to assist state and local jurisdictions in ensuring that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process.
“The Department of Justice and its component agencies protect our democratic process year-round,” said Attorney General Jeff Sessions. “During election season, we put in place additional security awareness and monitoring measures with our federal, state, and local partners to ensure the securest possible settings for our elections. Any attempts to interfere or subvert our democratic process by foreign or domestic entities will be met with severe consequences. The American people can be confident that their voices will be heard.”
Complaints related to violence, threats of violence, or intimidation at a polling place should always be reported immediately to local authorities by calling 911. They should also be reported to the Department of Justice after local authorities are contacted.
Below is a list of recent and ongoing action the Department of Justice has undertaken to ensure election security. The Department of Justice works year-round to ensure free and fair elections for all Americans.
Department of Justice’s Election Day Watch Program
In order to strengthen election security efforts, the Department of Justice and the FBI will host a live Election Day Watch at the FBI’s Strategic Information and Operations Center. President Trump outlined the Administration’s efforts to protect the elections from foreign interference in a Sept. 12 announcement.
Civil Rights Division
On Nov. 6, the Civil Rights Division will implement a comprehensive program to help protect the right to vote that will include the following:
- The Civil Rights Division will conduct monitoring in the field at polling places around the country.
- Civil Rights Division staff in Washington, D.C., will be ready to receive election-related complaints of potential violations relating to any of the federal statutes the division enforces. The division will take appropriate action and will coordinate with other entities within the Department of Justice concerning these complaints before, during, and after Election Day.
- Civil Rights Division staff will be available to receive complaints related to voting by telephone (1-800-253-393 or 202-307-2767) or by TTY (202-305-0082), by fax (202-307-3961), by email ([email protected]), and by complaint form on the Department of Justice’s website at https://www.justice.gov/crt/voting-section.
For more information on the Justice Department's efforts to protect the right to vote and prosecute ballot fraud, see here and here.
Criminal Division
On Nov. 6, the U.S. Attorneys’ Offices will work with specially trained FBI personnel in each district to ensure that complaints from the public involving possible voter fraud are handled appropriately. Specifically:
- In consultation with federal prosecutors at the Department of Justice’s Public Integrity Section in Washington, D.C., the District Election Officers in U.S. Attorneys’ Offices, FBI officials at Headquarters in Washington, D.C., and FBI special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open, to receive complaints from the public.
- Election-crime complaints should be directed to the local U.S. Attorney’s Office or the local FBI office. A list of U.S. Attorneys’ Offices and their telephone numbers can be found at https://www.justice.gov/usao/find-your-united-states-attorney. A list of FBI offices and accompanying telephone numbers can be found at https://www.fbi.gov/contact-us/
- Department of Justice Public Integrity Section prosecutors are available to consult and coordinate with the U.S. Attorneys’ Offices and the FBI regarding the handling of election-crime allegations.
For more information on the Criminal Division’s efforts to fight election crime, see here and here.
National Security Division
On Nov. 6, National Security Division attorneys will participate in interagency Election Day sync meetings to ensure that the Department of Justice is aware of the latest information from the Intelligence Community, to secure necessary authorizations from Department leadership in the event of a federal response, and to coordinate any interagency response.
In addition, lawyers from the National Security Division’s Counterterrorism Section and Counterespionage Section will be co-located at the FBI’s national monitoring Command Post (CP) at the Strategic Information and Operations Center (SIOC) at FBI Headquarters to provide operational guidance to local U.S Attorney’s Office and FBI field offices in the event of any election-related incident involving international or domestic terrorism, malicious cyber activities, or other threats to national security.
For more information on the National Security Division’s Counterterrorism Section, see here.
Report of The Attorney General’s Cyber Digital Task Force
On July 19, 2018, Deputy Attorney General Rod Rosenstein formally issued the Report of The Attorney General’s Cyber Digital Task Force in response to the establishment of the Cyber Digital Task Force by Attorney General Jeff Sessions in February of 2018. The report addresses the Department of Justice’s efforts to address cyber-enabled threats, including malign foreign influence operations that target U.S. elections. The Deputy Attorney General’s full remarks at the Aspen Security Forum can be found here.
United States Attorney Announces Resources for Election Day ProgramRead the Press Release
United States Attorney Announces Resources for Election Day Program
District Election Officer and Law Enforcement Resources Will Be AvailableTo Receive Complaints of Election Fraud and Voting Rights Abuses
NEWS RELEASE SUMMARY – November 2, 2018
Adam L. Braverman, United States Attorney for the Southern District of California, announced today that Assistant United States Attorney Christopher P. Tenorio will lead the efforts on behalf of the United States Attorney’s Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming elections on November 6, 2018. Mr. Tenorio has been appointed to serve as the District Election Officer for the Southern District of California, which includes San Diego and Imperial Counties. He will be responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington, D.C.
United States Attorney Braverman said, “We are committed to ensuring that every citizen will have the right to vote without interference or discrimination. Anyone with information regarding voting fraud or election abuses is encouraged to immediately contact our local FBI Office or our District Election Officer.”
The Department of Justice hopes to deter and prosecute election fraud and discrimination occurring at the polls. The Department also seeks to ensure public confidence in the integrity of the election process by providing local points of contact for the public to report possible election fraud and voting rights violations. United States Attorney Braverman stated that Mr. Tenorio will be on duty while the polls are open during Election Day. He can be reached at (619) 546-8413.
In addition, the FBI will have Special Agents available to receive allegations of election fraud, intimidation, suppression of votes, and other election abuses. The FBI can be reached at 858-320-1800. Information can also be submitted to tips.fbi.gov. Complaints may also be made directly to the Department of Justice’s Civil Rights Division, Voting Section in Washington, D.C. at (800) 253-3931 or (202) 307-2767.
Federal law protects against crimes such as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots against voters’ wishes or without their input. The law also contains special protections for eligible voters to exercise their rights free from intimidation or harassment. Prohibited actions include those designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that such actions are necessary to uncover illegal voting. Further, federal law protects the right of voters to cast their own ballot or receive assistance from a person of their choice.
Three Puerto Rican Men Arrested on Federal Charges in Dish Network Services Piracy SchemeRead the Press Release
On Nov. 2, a federal indictment against three Puerto Rican men was unsealed after their arrest for their roles in a conspiracy to provide pirated DISH Network (DISH) services to thousands of Puerto Ricans, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodriguez-Velez for the District of Puerto Rico. DISH is a Colorado based company that provides satellite television to its customers for a fee and has invested heavily in measures to ensure that its services are not intercepted by copyright infringers, also known as pirates.
The three-count indictment charges Arnaldo Vazquez, 41, aka “Naldo,” aka “naldo.dish;” Awildo Jimenez, 36, aka “Wildo,” “joselo626,” and “wildo20;” and Higinio Lamboy, 46, aka “Ingi,” with one count of conspiracy to circumvent protective systems, infringe copyrights and traffic in satellite decryption devices, one substantive count of trafficking in technology designed to circumvent technology copyright protection systems and one substantive count of circumventing a technological measure that protects a copyrighted work.
The indictment describes Vazquez and Jimenez as owners and operators of a company that provided the pirated services to customers who paid a monthly cash fee to receive copyrighted content delivered from DISH satellites and identifies Lamboy as their salesman and repairman for the hardware that they provided to their customers. The indictment further describes a complex scheme to steal the copyrighted content for financial gain through the interception of encrypted DISH signals that were distributed to paying DISH customers and decrypted through DISH-issued hardware. For example, the indictment alleges that the defendants used DISH’s network control words, or decrypted code, and placed them onto an Internet Key Sharing (IKS) server, which was under their control. Placing the control words on the IKS server aided the decryption and distribution of the pirated content. The defendants also provided their customers with receivers that were programmed with software that allowed them to bypass DISH’s anti-piracy measures, which then allowed their customers to connect to the conspirators’ bootleg IKS server to access the copyrighted content.
The indictment alleges that the defendants used online chat forums to discuss their criminal enterprise, resolve technical problems related to their DISH piracy, and facilitate the payment for their criminal deeds and purchase of equipment needed to further their scheme.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is the result of the investigative efforts of the FBI. The case is being prosecuted by Senior Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Nicholas Cannon of the District of Puerto Rico.
Statement from Attorney General Sessions on the Drug Enforcement Administration’s 2018 National Drug Threat AssessmentRead the Press Release
Today, the Drug Enforcement Administration (DEA) released its 2018 National Drug Threat Assessment, a comprehensive, strategic assessment of the illicit drug threats facing the United States. Attorney General Sessions made the following statement about the report:
“This new report from the DEA confirms that transnational drug cartels and foreign drug labs, working with street gangs, are flooding our communities with drugs like heroin, fentanyl, cocaine, and methamphetamines,” Attorney General Sessions said. “But under the Trump Administration, we are hammering these groups. I have restored commonsense criminal charging and sentencing policies with our prosecutors, surged resources to jurisdictions facing some of the highest levels of violence and drug abuse, and targeted enforcement against the most violent offenders and organizations. Last year, the average federal sentence for drug trafficking rose, and we are already seeing encouraging results. Preliminary data from the CDC shows that drug overdose deaths actually began to decline in late 2017 and opioid prescriptions fell significantly. We also saw an actual decline in homicides and violent crimes in 2017 after increases in 2015 and 2016. Law enforcement is crime prevention—and that's what we're doing every day across America. The Department of Justice will continue to focus resolutely on drug traffickers and protect the American people.”
Background:
According to the report’s summary: “Illicit drugs, as well as the transnational and domestic criminal organizations who traffic them, continue to represent significant threats to public health, law enforcement, and national security in the United States. Drug poisoning deaths are the leading cause of injury death in the United States; they are currently at their highest ever recorded level and, every year since 2011, have outnumbered deaths by firearms, motor vehicle crashes, suicide, and homicide. In 2016, approximately 174 people died every day from drug poisoning.”
As the report also notes:
“National and neighborhood-based street gangs and prison gangs continue to dominate the market for the street-sales and distribution of illicit drugs in their respective territories throughout the country. Struggle for control of these lucrative drug trafficking territories continues to be the largest factor fueling the street-gang violence facing local communities. . . . Gangs’ desire to secure the largest share of the profits and the most lucrative territories for themselves drives violent turf wars that often result in the murder or attempted murder of rival gang members and drug dealers. Firearm-related violence will likely continue to be associated with the illicit drug trade due to the constant turf wars between gangs vying for control of territory. . . . Street gangs are increasingly distributing fentanyl and fentanyl-laced products as the drugs continue to flow into the United States. The monies involved with its street sale, and the demand for fentanyl by the consumers of illicit drugs, encourages gangs to become more involved with selling fentanyl.”
Recidivist Sex Offender Sentenced to 15 Years in Prison for Downloading Child PornographyRead the Press Release
A Fairfax, Virginia man was sentenced today to 15 years in prison for downloading child pornography, followed by a lifetime term of supervised release, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office announced.
Christopher James Tator, 31, a newspaper carrier, was sentenced by Senior U.S. District Judge T.S. Ellis III of the Eastern District of Virginia. In August, Tator pleaded guilty to one count of receipt of child pornography by a person with a prior conviction relating to aggravated sexual abuse, sexual abuse, or abusive sexual conduct involving a minor.
According to court documents, Tator was discovered by the FBI making child pornography files available over an Internet file-sharing network. A computer forensic examination of devices seized from Tator’s residence during a search warrant revealed that he had used a computer to download child pornography videos from a Dropbox cloud storage account. Tator’s devices also contained hundreds of thumbnail images of children being sexually abused, many of which depicted the sexual abuse of infants. Tator is a registered sex offender as a result of a 2010 Prince William County conviction of attempting to take indecent liberties with children.
The case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, with assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). CEOS Trial Attorney Kyle P. Reynolds prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Press Release by United States Attorney Relating to November 2018 ElectionsRead the Press Release
United States Attorney SHAWN N. ANDERSON announced today that Assistant United States Attorney (AUSA) Marivic P. David will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. AUSA David has been appointed to serve as the District Election Officer (DEO) for the District of Guam and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Anderson said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Anderson stated that AUSA/DEO David will be on duty in this District while the polls are open. Ms. David can be reached by the public by calling 479-4120.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public by calling Special Agent Joshua Kipp at 472-7465 or 645-1806.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Anderson said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Justice Department Reaches Settlement with Hudson Valley Federal Credit Union for Illegally Repossessing Servicemembers’ CarsRead the Press Release
The Justice Department today announced that Hudson Valley Federal Credit Union has agreed to pay $95,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing vehicles owned by SCRA-protected servicemembers without first obtaining the required court orders. Under the agreement, Hudson Valley has agreed to pay $65,000 to compensate seven servicemembers whose cars it unlawfully repossessed and will pay a civil penalty of $30,000 to the United States.
The Department launched an investigation into Hudson Valley’s repossession practices after learning of two private lawsuits filed in the Southern District of New York. In both lawsuits, the plaintiffs alleged that Hudson Valley violated the SCRA by repossessing the plaintiffs’ vehicles after plaintiffs had entered military service. The Department’s subsequent investigation identified seven additional violations and revealed that, prior to August 2014, Hudson Valley did not have any written policies or procedures that addressed the SCRA’s protections against non-judicial auto repossessions.
Hudson Valley, headquartered in Poughkeepsie, New York, is one of the largest credit unions in the country.
“Financial institutions must recognize and honor their responsibilities to our men and women in uniform,” said Acting Assistant Attorney General John Gore. “Our nation depends upon the selfless devotion and sacrifice of our servicemembers and we must ensure that they receive all rights and protections afforded to them by law.”
“Protecting service members is a high priority for this Office and the country,” said U.S. Attorney Geoffrey S. Berman. “We are pleased that Hudson Valley has taken these remedial steps, and this Office will continue to protect the rights of men and women in uniform.”
The agreement requires Hudson Valley to provide $10,000 in compensation to each of the six affected servicemembers, plus any lost equity in the vehicle with interest. An additional servicemember, whose vehicle was repossessed but returned within 24 hours, will receive $5,000. Hudson Valley has also taken steps to repair the credit of the affected servicemembers.
The agreement resolves the claims and causes of action asserted in the United States’ Complaint against Hudson Valley filed in the United States District Court for the Southern District of New York. Hudson Valley will contact servicemembers to be compensated through this settlement in the upcoming months and will distribute payments at no cost to servicemembers.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the Department has obtained over $467 million in monetary relief for servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/content/locator.php.
Attorney General Sessions Issues Statement on Judicial Ruling Declaring California Senate Bill 50 UnconstitutionalRead the Press Release
Today, Attorney General Jeff Sessions issued the following statement regarding the court’s ruling in the Eastern District of California declaring California Senate Bill 50 (SB 50) unconstitutional:
“The court’s ruling is a firm rejection of California’s assertion that, by legislation, it could dictate how and when the federal government sells federal land. This was a stunning assertion of constitutional power by California, and it was properly and promptly dismissed by the district judge. It is unfortunate that, in the interim, California forced both the Justice Department and the court to spend valuable time and resources to dispose of its baseless position.
“This is the third time in the last few months that a federal court has struck down as unconstitutional all or parts of a law that California designed to frustrate federal law. This trend is concerning, and the Department of Justice will continue to vigorously defend the rightful duties of the federal government in court, and ensure that no state, including California, subverts the enforcement of federal law.”
In April this year, the Department of Justice filed a civil action in the U.S. District Court for the Eastern District of California against the State of California, Governor of California Edmund G. “Jerry” Brown Jr., and the California State Lands Commission, seeking a declaration that California Senate Bill 50 (SB 50), enacted in October 2017, is unconstitutional and seeking an injunction against implementation of this state law. The California law purported to give a state agency the power to block the sale, donation or exchange of federal lands by the federal government to any other person or entity. SB 50 also sought to penalize (up to $5,000) any person who knowingly filed real estate records pertaining to a federal land transfer unless the California government certified that the transfer complies with state law.
The District Court for the Eastern District of California found that SB 50 interfered with the federal government's constitutional authority to convey federal land in the State of California. Under a range of federal laws, Congress has empowered federal agencies with the responsibility to determine when, to whom, for what purpose, and under what conditions federal interests in property will be conveyed. Federal conveyances serve a broad range of purposes such as supporting national defense, promoting local economic development, furthering land conservation, or otherwise providing important public benefits.
MPLX LP to Cut Harmful Air Pollution at Natural Gas Processing Facilities Improving Air Quality for Communities in Six StatesRead the Press Release
Today, the U.S. Department of Justice, the U.S. Environmental Protection Agency (EPA), the State of Oklahoma, the Pennsylvania Department of Environmental Protection, and the State of West Virginia announced a settlement agreement with MPLX LP (MPLX) and 11 of its subsidiaries that will strengthen air pollution controls at 20 natural gas processing plants located in Pennsylvania, Ohio, West Virginia, Kentucky, Texas and Oklahoma.
The settlement addresses alleged violations of federal and state clean air laws governing the control of emissions from equipment leaks, pressure relief devices, storage tanks, truck and railcar loading, combustion devices, and process heaters. As part of the settlement, MPLX will also perform Supplemental Environmental Projects (SEPs), install equipment to control volatile organic compound (VOC) emissions from truck loading operations at two natural gas compressor stations, and pay a $925,000 penalty.
“This agreement will eliminate harmful air pollutants and create cleaner air for communities in six states,” said EPA Office of Enforcement and Compliance Assurance Assistant Administrator Susan Bodine. “By improving air pollution control at 20 of their gas processing facilities, MPLX will reduce VOC emissions by more than 1,500 tons a year.”
Under the terms of the settlement, MPLX is expected to spend approximately $2.78 million to install and operate new technologies as well as improve and expand existing control techniques that minimize VOC emissions at its natural gas processing plants. Certain provisions of the consent decree also include measures to ensure MPLX’s compliance with nitrogen oxide (NOx) emission limits applicable to process heaters at MPLX’s facilities. In addition, MPLX will implement a mitigation project to reduce VOC emissions at two natural gas compressor stations in Pennsylvania and Ohio, respectively, through the installation of new technology to capture and control VOC emissions during truck loading operations, which is expected to cost at least $700,000. MPLX will also implement SEPs involving the installation and operation of ambient air monitoring stations adjacent to four natural gas processing plants located in Pennsylvania, West Virginia, Kentucky, and Texas, respectively, at a cost of $2.5 million. Finally, MPLX will implement a SEP involving the study of the effectiveness of computer predictive modeling of fugitive leaks as a potential emission reduction tool, at a cost of $75,000.
VOCs include a variety of chemicals that may produce adverse health effects such as eye, nose, and throat irritation, headaches, nausea, and damage to the liver, kidney, and the central nervous system. VOCs also contribute to the formation of ground level ozone, which is not emitted directly into the air, but is created by chemical reactions between NOx and VOCs in the presence of sunlight. Breathing ozone can trigger a variety of health problems, particularly for children, the elderly, and anyone with lung diseases such as asthma. Ground level ozone can also have harmful effects on sensitive vegetation and ecosystems. Besides ground level ozone, NOx emissions also contribute to acid rain, particulate matter, water quality deterioration, and visual impairment.
The consent decree has been lodged with the U.S. District Court for the Northern District of Ohio and is subject to public comment for a period of at least 30 days. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
For more information on the settlement, please visit: https://www.epa.gov/enforcement/mplx-lp-clean-air-act-settlement-information-sheet.
Federal Circuit Court of Appeals Upholds Denial of Sunoco’s One Billion Dollar Tax ExpenseRead the Press Release
The Federal Circuit Court of Appeals issued a precedential opinion today affirming the Court of Federal Claims decision that federal corporate taxpayers may not deduct as a cost of goods sold expense an excise tax expense that was never actually incurred or paid, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and Deputy Assistant Attorney General Travis A. Greaves of the Justice Department’s Tax Division.
In Sunoco, Inc. v. United States, No. 2017-1402, the Federal Circuit Court of Appeals affirmed the decision of the Court of Federal Claims and the position of the United States. Sunoco, Inc., a petroleum and petrochemical company, claimed approximately $1 billion in alcohol fuel mixture credits on its federal excise tax returns thereby reducing its federal fuel excise tax liability by the same amount. By including the $1 billion in excise tax expenses in its cost of goods sold, Sunoco, Inc. sought to reduce its federal corporate income taxes with an excise tax expense that was never paid. The Federal Circuit held that the plain language of the Internal Revenue Code precluded Sunoco, Inc.’s attempt to obtain a $300 million dollar “windfall” reduction in tax. The court also stated, “We have already established that Congress does not generally allow taxpayers to receive a tax benefit twice.”
Principal Deputy Assistant Attorney General Zuckerman thanked Tax Division attorneys Judith Hagley, Gilbert Rothenberg, and Richard Farber, who handled the case on appeal for the government.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Department of Justice Announces New Active Shooter Training Grant for First RespondersRead the Press Release
Principal Deputy Associate Attorney General Jesse Panuccio, Director Phil Keith of the Department of Justice’s Office of Community Oriented Policing Services (COPS Office), and Dr. Pete Blair, Executive Director of the Advanced Law Enforcement Rapid Response Training (ALERRT) Center at Texas State University today announced an $8.7 million grant to provide multi-disciplinary, scenario-based active shooter training to first responders across the country.
Today’s announcement took place during the ALERRT Active Shooter Integrated Response Conference, where emergency personnel heard from subject matter experts on best practices and lessons learned from some of the nation’s most tragic and horrific mass casualty events. ALERRT is part of Texas State University, which has trained approximately 130,000 first responders since its inception in 2002.
“Training for first responders to take swift and effective action in active shooting situations is critically important,” said Principal Deputy Associate Attorney General Jesse Panuccio. “We can mitigate the loss of life in these horrific incidents by providing resources to better equip first responders and prepare community members, local law enforcement, and local government leaders. The Department of Justice fully supports the brave first responders who risk their own lives to protect the safety of our children, colleagues, and community members.”
“The funding announced here today comes at a critical time for our country,” said COPS Office Director Keith. “As the demands placed on our nation’s first responders continue to grow with these violent mass casualty incidents, I believe it is our responsibility to make sure they have the tools, resources and training to properly respond to these attacks.”
“This COPS funding will allow ALERRT to provide the training needed to prepare police, fire, and EMS services across the country to save as many lives as possible when these horrific attacks occur,” said Dr. Pete Blair, Executive Director of the ALERRT Center at Texas State University.
Physician stakeholders working in the fields of emergency medicine, trauma surgery, anesthesia, blood bank, critical care and blood collection center directors will join law enforcement, fire services, EMS, emergency communications and emergency management for the first time during this year’s ALERRT conference. ALERRT’s multi-disciplinary approach is recognized as one of the nation’s leading training models, and the Department of Justice is pleased to announce additional funding for this effort.
The 2018 investment from the Department of Justice for ALERRT will provide in-person training to an estimated 15,000 first responders, in addition to the 9,000 individuals that received the training in 2017. ALERRT and the COPS Office are currently developing an online civilian training program, which will reach tens of thousands of citizens – helping to prepare them to take effective actions if they should find themselves in an attack.
The ALERRT Center at Texas State University was created as a partnership between Texas State University, the San Marcos (TX) Police Department, and the Hays County (TX) Sheriff’s Office to address the need for active shooter response training for first responders. In 2013, ALERRT was named the National Standard in Active Shooter Response Training by the FBI.
The COPS Office awards grants to hire community policing officers, develop and test innovative policing strategies, and provide training and technical assistance to community members, local government leaders, and all levels of law enforcement. Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.
Court Appoints Receivers to Inventory and Distribute Client Files of Lawyer Involved in Largest Social Security Fraud Scheme in HistoryRead the Press Release
Former fugitive and social security disability lawyer Eric Christopher Conn, 58, of Pikeville, Kentucky, was sentenced in September to a total of 27 years in prison for his role in retaliating against an informant, fleeing from the United States, and defrauding the U.S. Social Security Administration (SSA) of more than $550 million. When he went to prison, however, approximately 6,000 to 7,000 client files relating to claims for social security benefits remained in his former Kentucky law office. The building and land was forfeited to the United States and will be sold. Before the building can be sold, the client files had to be removed and ultimately distributed to his former clients – a daunting task made even more difficult by the fact that they are attorney-client privileged materials.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director Timothy Virtue of the U.S. Marshals Service’s Asset Forfeiture Division announced today that two Receivers were selected by Judge Danny C. Reeves of the Eastern District of Kentucky on Oct. 12, and that the Receivers have now successfully removed the files from the law office property to begin their inventory and distribution. The files were located in the property that formerly housed Conn’s law practice at 9420 US Highway 23 South, Stanville, Kentucky.
Judge Reeves appointed veteran attorneys Cary B. Howard and Barry Stilz, of the law firm Kinkead & Stilz, in Lexington, Kentucky, as the Court’s Receivers after the Kentucky State Bar refused to take on the project. The Court directed the Receivers to collect, inventory, and to the extent possible, distribute the files to Conn’s former clients.
Former clients of Eric Conn, or their counsel, should contact the Receivers if they wish to obtain their files. The Receivers can be contacted at (859) 226-7580, or by e-mail at [email protected]
The case was investigated by the SSA Office of Inspector General, FBI, IRS Criminal Investigation and U.S. Department of Health and Human Services, Office of Inspector General. Deputy Chief Darrin L. McCullough and Trial Attorney Rebecca Caruso of the Criminal Division’s Money Laundering and Asset Recovery Section are handling the forfeiture portion of the case, with previous forfeiture co-counsel including Assistant U.S. Attorneys Ann Marie Blaylock of the Western District of Kentucky, Elizabeth G. Wright of the District of Maryland, and Trey Alford of the Western District of Missouri, as well as Investigative Counsel Kristen M. Warden of the U.S. Department of Justice Office of the Inspector General. Lead counsel on the criminal case was Trial Attorney Dustin M. Davis of the Department of Justice’s Fraud Section
Virginia Man Sentenced to 30 Years in Prison for Enticement, Receipt, and Possession of Child PornographyRead the Press Release
A Roanoke, Virginia man was sentenced to 360 months in prison today, to be followed by a lifetime of supervised release, for enticement of a minor, receipt or attempted receipt of child pornography, and possession of child pornography. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Thomas T. Cullen for the Western District of Virginia made the announcement.
Scott Curtiss Pieritz, 57, pleaded guilty on June 19, before Chief U.S. District Judge Michael F. Urbanski of the Western District of Virginia to one count of enticement of a minor, one count of receipt or attempted receipt of child pornography and one count of possession of child pornography.
According to court documents, in July 2017, law enforcement agents were notified that Pieritz, who had a duty to register as a sex offender as a result of three prior child pornography convictions, was using social media applications to communicate with minors and ask them for nude images of themselves. Forensic examination of Pieritz’s electronic devices seized pursuant to a search warrant confirmed that he was in possession of numerous images and videos of child pornography, had used applications such as Omegle and Musical.ly to entice minors to produce and send him child pornography, and had posed as a minor online. At times, Pieritz also exchanged money and gifts for child pornography images from minors. At the time of his arrest, Pieritz was employed as a cashier and dishwasher at K&W Cafeteria, in Roanoke.
The case was investigated by the Virginia State Police. Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Nancy Healey of the Western 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.
Pennsylvania Man Charged with Federal Hate Crimes for Tree of Life Synagogue ShootingRead the Press Release
A federal grand jury sitting in the U.S. District Court for the Western District of Pennsylvania charged a Pennsylvania man with federal hate crimes, including the murder of 11 people, for his actions during the Oct. 27, 2018 shootings at the Tree of Life Synagogue in Pittsburgh’s Squirrel Hill neighborhood. United States Attorney General Jeff Sessions, Acting Assistant Attorney General John Gore for the Civil Rights Division, U.S. Attorney for the Western District of Pennsylvania Scott W. Brady, and FBI-Pittsburgh Special Agent in Charge Robert Jones made the announcement.
Robert Bowers, 46, of Baldwin, Pa., was charged in a 44-count indictment returned today.
According to the indictment, on Oct. 27, 2018, Bowers drove to the Tree of Life Synagogue in Pittsburgh, Pennsylvania, where members of the Tree of Life, Dor Hadash, and New Light Jewish congregations gathered to engage in religious worship. Bowers entered the building armed with multiple firearms, including Glock .357 handguns a Colt AR-15 rifle. The indictment alleges that while inside the Tree of Life Synagogue, Bowers opened fire, killing and injuring members of the three congregations, as well as injuring multiple responding public safety officers. While inside the Tree of Life Synagogue, Bowers made statements indicating his desire to “kill Jews.”
Specifically, the indictment charges:
- Eleven counts of obstruction of free exercise of religious beliefs resulting in death;
- Eleven counts of use and discharge of a firearm to commit murder during and in relation to a crime of violence;
- Two counts of obstruction of free exercise of religious beliefs involving an attempt to kill and use of a dangerous weapon and resulting in bodily injury;
- Eleven counts of use and discharge of a firearm during and in relation to a crime of violence;
- Eight counts of obstruction of free exercise of religious beliefs involving an attempt to kill and use of a dangerous weapon, and resulting in bodily injury to a public safety officer; and
- One count of obstruction of free exercise of religious beliefs involving use of a dangerous weapon and resulting in bodily injury to a public safety officer.
“Hatred and violence on the basis of religion can have no place in our society,” Attorney General Jeff Sessions said. “Every American has the right to attend their house of worship in safety. The defendant in this case allegedly murdered 11 innocent people during religious services and injured four law enforcement officers. These alleged crimes are incomprehensibly evil and utterly repugnant to the values of this nation. Therefore this case is not only important to the victims and their loved ones, but to the city of Pittsburgh and the entire nation. I want to express my thanks and admiration for the courage and professionalism of those officers who so quickly responded to this event, and especially to those that suffered wounds in the process. Our thanks is also extended to the Pittsburgh Bureau of Police, the FBI, and the ATF for their outstanding response to this violent and deadly attack. The Department of Justice, working with our state and local partners, will bring the full force of the law against anyone who would violate the civil rights of the American people and we are resolutely determined to achieve justice in this case.”
“A federal grand jury in western Pennsylvania returned a 44-count indictment against Robert Bowers for the killing of 11 worshipers at the Tree of Life synagogue on Saturday, October 27, 2018,” stated U.S. Attorney Brady. “Today begins the process of seeking justice for the victims of these hateful acts, and healing for the victims’ families, the Jewish community, and our city. Our office will spare no resource, and will work with professionalism, integrity and diligence, in a way that honors the memories of the victims. This is what the public expects from the US Department of Justice. And truly we, as Pittsburghers, can do no other. It is time to go to work.”
“I want to assure everyone that the FBI has teams of professionals working toward a single goal: to piece together the facts, answer the questions and ensure justice is served,” said FBI Pittsburgh Special Agent in Charge Robert Jones. “We, as a community, are all united. I also want to thank local law enforcement and first responders for their heroic work. They showed professionalism and extraordinary bravery and their quick actions no doubt saved the lives of many other people that day. We are very lucky that such good people choose lives of service in law enforcement.”
The victims include 11 worshipers at the Tree of Life Synagogue who were killed, 2 members of the congregation who were critically injured by Bowers and 9 other members of the congregation who escaped unharmed. Additionally, four law enforcement officers were injured trying to stop Bowers’ rampage.
Assistant United States Attorneys Troy Rivetti and Soo C. Song, along with Trial Attorney Julia Gegenheimer of the Civil Rights Division’s Criminal Section, are prosecuting this case on behalf of the government.
The FBI conducted the investigation leading to the Indictment in this case.
The defendant faces a maximum possible penalty of death, or life without parole, followed by a consecutive sentence of 535 years’ imprisonment.
An indictment is a formal accusation of conduct, not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
Louisiana Race Horse Training Center Owner Will Pay Civil Penalties and Perform Corrective Measures to Resolve Pollution Discharge ViolationsRead the Press Release
Racehorse training-center operator Evangeline Enterprises LLC has agreed to pay $300,000 in civil penalties and to make changes in its handling of polluted wastewater at its Louisiana facility to settle Clean Water Act claims filed by the U.S. Environmental Protection Agency (EPA) and the Louisiana Department of Environmental Quality (LDEQ), the Department of Justice and EPA announced today.
The settlement, contained in a proposed consent decree lodged today with the U.S. District Court for the Western District of Louisiana, resolves claims by EPA and LDEQ in a complaint filed on October 19, 2017. The complaint alleged that Evangeline is illegally discharging process wastewater, contaminated with horse manure, urine, and other biological materials, from its facility into the Vermilion River and its tributary, the Francois Coulee, in violation of the Clean Water Act and the Louisiana Environmental Quality Act.
“Louisiana is a beautiful state with a vast, diverse ecosystem that is rich in natural resources, including its rivers, bayous, and coastal waters,” said U.S. Attorney David C. Joseph. “My office is committed to protecting these treasures from those who would illegally exploit or damage them. Today’s settlement is but one example of my commitment to aggressively prosecute, both civilly and criminally, those who poison Louisiana's environment and to seek restitution for any damages they inflict.”
“This agreement is the result of extensive cooperation between the state of Louisiana and EPA,” said Regional Administrator Anne Idsal for EPA Region 6. “Ensuring the lawful handling of wastes will mean cleaner streams and waterways in Louisiana, which is important for aquatic habitats, safe drinking water, and public recreation.”
Under the Clean Water Act, facilities like Evangeline’s that house more than 150 horses for 45 days or more in any 12-month period and discharge pollutants must obtain a permit and comply with rules to ensure that pollutants, including contaminated process wastewater, are not discharged to waters of the United States or waters of the State. Evangeline discharged process wastewater into drainage ditches and pipes at the facility that then flowed into the Francois Coulee and Vermilion River. To correct this, the retention control structure required under the settlement agreement will store all process wastewater at the facility and allow it to be routed for proper treatment to stop the unauthorized discharges to the Francois Coulee and Vermilion River.
Under the settlement, Evangeline will pay the civil penalties and submit an application for a Louisiana National Pollutant Discharge Elimination System permit, comply with best management practices for waste at the facility, and construct a waste retention control structure in compliance with federal and state regulations. In the event that Evangeline chooses to close the facility, the agreement provides alternative measures to require the company to eliminate further discharges of pollution into area waterways.
The proposed consent decree is subject to a 30-day federal public comment period, a 45-day Louisiana public comment period, and final court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
For more information on the settlement visit: https://www.epa.gov/enforcement/evangeline-enterprises-llc-settlement-information-sheet.
Former Executive Director at Venezuelan State-Owned Oil Company, Petroleos De Venezuela, S.A., Pleads Guilty to Role in Billion-Dollar Money Laundering ConspiracyRead the Press Release
A former executive director at the Venezuelan state-owned oil company, Petróleos de Venezuela, S.A. (PDVSA), pleaded guilty today for his role in a billion-dollar international scheme to launder funds embezzled from PDVSA.
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.
Abraham Edgardo Ortega, 51, a Venezuelan national, who was PDVSA’s executive director of financial planning, pleaded guilty to one count of conspiracy to commit money laundering. He is scheduled to be sentenced on Jan. 9, 2019 by U.S. District Judge Kathleen M. Williams of the Southern District of Florida, who accepted his plea today.
As part of his plea, Ortega admitted that in his position with PDVSA, he accepted $5 million in bribes to give priority loan status to a French company and a Russian bank, which were both minority shareholders in joint ventures with PDVSA. Ortega was paid for this bribery scheme with the proceeds of a currency exchange scheme, through which $1.2 billion was embezzled, through bribery and fraud from PDVSA. Ortega also admitted that in his position with PDVSA, he accepted $12 million in bribes for his participation in a PDVSA embezzlement scheme involving a loan and foreign-exchange contract.
Ortega admitted that he worked with a co-defendant to launder $12 million that he received as bribe payments. Ortega admitted that he and his co-defendant laundered $12 million through a sophisticated false-investment scheme that received money from a payment made to look like an investment into a fund, but, in fact, the payment was actually laundered out of the fund. Surrounding and supporting this false-investment laundering scheme were complicit money managers, brokerage firms, banks and real estate investment firms in the United States and elsewhere, operating as a network of professional money launderers, Ortega admitted.
Ortega’s co-conspirators indicted on Aug. 16 include former PDVSA officials, professional third-party money launderers and members of the Venezuelan elite, sometimes known as “boliburgués.”
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force’s (OCDETF) “Operation Money Flight,” a partnership among federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
HSI Miami, HSI London, HSI Rome and HSI Madrid investigated this case. This case is being prosecuted by Assistant Chief David Johnson and Trial Attorney Gwendolyn A. Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida’s Economic and Environmental Crimes Section. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida is handling the asset forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs provided substantial assistance in this matter. The National Crime Agency of the United Kingdom and Italian, Spanish and Maltese law enforcement authorities also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Correctional Officer Charged with Assaulting Handcuffed and Shackled Inmate at Elayn Hunt Correctional CenterRead the Press Release
A former correctional officer at Elayn Hunt Correctional Center in St. Gabriel, Louisiana, was indicted today by a federal grand jury on charges of beating a handcuffed and shackled inmate, and conspiring with other officers to cover up their misconduct by falsifying official reports and lying to investigators. Two other correctional officers, Eric Norwood and Charles Philson, have previously pleaded guilty for their roles in the assault of the inmate.
Today’s indictment accuses Adrian Almodovar of federal civil rights, conspiracy, and obstruction violations. According to the indictment, Almodovar and other members of the tactical team assaulted an inmate during the course of a cell extraction, during transportation to the medical unit, and inside the medical unit. The inmate was handcuffed and shackled during the course of the assaults.
It is alleged that the defendants then drafted false reports in which they intentionally omitted that they used force on the inmate. Days after the assault, the defendants met with another officer at the a local restaurant in which they agreed that, if questioned about the assault by investigators, they would stick to the false story they wrote in their reports and claim that they did not use unlawful force.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Baton Rouge Division of the FBI and the Office of Louisiana Inspector General, and is being prosecuted by Trial Attorneys Christopher J. Perras and Zachary Dembo of the Department’s Civil Rights Division.
Eight Maryland TTG Members and Associates Convicted on Federal Racketeering and Drug Conspiracy Charges, Including Nine Murders and Witness IntimidationRead the Press Release
A federal jury today convicted eight Baltimore, Maryland men for conspiring to participate in a violent racketeering enterprise known as Trained To Go (TTG), a subset of the Black Guerrilla Family (BGF) gang, including nine murders, drug trafficking, and witness intimidation, as well as on conspiracy to distribute and possess with intent to distribute heroin, marijuana, and cocaine. Several of the defendants were also convicted of related drug and firearms charges.
The defendants convicted today are: Montana Barronette, aka “Tana,” and “Tanner,” 23; Terrell Sivells, aka “Rell,” 27; John Harrison, aka “Binkie,” 28; Taurus Tillman, aka “Tash,” 29; Linton Broughton, aka “Marty,” 25; Dennis Pulley, aka “Denmo,” 31; Brandon Wilson, aka “Ali,” 24; and Timothy Floyd, aka “Tim Rod,” 28.
The convictions were announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur for the District of Maryland; Special Agent in Charge Gordon B. Johnson of the FBI Baltimore Field Office; Interim Commissioner Gary Tuggle of the Baltimore Police Department; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration (DEA), Baltimore District Office and Anne Arundel County Police Chief Tim Altomare.
“For six years, Trained To Go terrorized the Sandtown neighborhood, committing murders, robberies, and other violence as they sold their poison on the streets of Baltimore,” said Assistant Attorney General Benczkowski. “Today’s convictions ensure that Montana Barronette and the other seven defendants in this vicious gang now will be held accountable for their horrible crimes.”
“Federal, state and local law enforcement joined together to target the leaders and key members of one of the most violent gangs operating in Baltimore City,” said U.S. Attorney Hur. “Today’s convictions prove our continuing commitment to removing armed, violent criminals from our neighborhoods and bringing them to justice in the federal system, which has no parole—ever.”
“This investigation represents the epitome of law enforcement agencies working together to target and dismantle violent street gangs that threaten the safety and stability of our neighborhoods,” said FBI Baltimore Special Agent in Charge Johnson. “The citizens of Baltimore City and Maryland have the FBI’s commitment that we will work with our local, state and federal partners to attack these dealers and remove violent criminals from their neighborhoods.”
According to the evidence presented at their 24-day trial, the defendants are all members of TTG, a criminal organization and subset of the Black Guerrilla Family (BGF) gang that operated in the Sandtown neighborhood of West Baltimore, whose members engaged in drug distribution and acts of violence including murder, armed robbery, and witness intimidation. Members and associates of TTG sold heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
Specifically, the evidence proved that between May 20, 2010 and May 25, 2016, the defendants and other members of TTG committed acts of violence, including nine murders, shootings, armed robbery, and witness intimidation. The violent acts were intended to further the gang’s activities, protect the gang’s drug territory, and maintain and increase a member’s position within the organization. Murders were committed in retaliation for individuals robbing TTG members of drugs and drug proceeds, or while TTG members robbed others of their drugs and drug proceeds, as well as in murder-for-hire schemes. Further, the defendants engaged in witness intimidation through violence or threats of violence, to prevent individuals from cooperating with law enforcement.
The defendants all face a maximum sentence of life in prison on the racketeering and drug conspiracies. Pulley and Wilson each also face a maximum sentence of 10 years in prison for being felons in possession of a firearm; and a mandatory minimum of five years, consecutive to any other sentence imposed, and up to life in prison for possession of a firearm in furtherance of a drug trafficking crime. Tillman and Sivells also face up to 20 years in prison for distribution and possession with intent to distribute heroin. U.S. District Judge Catherine C. Blake has scheduled sentencing. The defendants remain detained.
Three other TTG members, all of Baltimore, previously pleaded guilty. Brandon Bazemore, aka Man Man, 25, pleaded guilty to the racketeering conspiracy, including three murders and an attempted murder, as well as to the drug conspiracy. Bazemore and the government have agreed that if the Court accepts the plea, Bazemore will be sentenced to 25 years in federal prison at his sentencing on Nov. 13. Co-defendants Hisaun Chatman, 31, and James Woodfolk, 20, pleaded guilty to the drug conspiracy and were each sentenced to five years in prison, to be served concurrent to the state sentence each is currently serving.
Co-defendant Roger Taylor, of Baltimore, is still a fugitive, and the charges against him are pending. Anyone who may have information on the whereabouts of Roger Taylor is asked to contact the FBI Baltimore Field office at (410) 265-8080.
The investigation was conducted by the FBI, the Baltimore Police Department, the ATF, the DEA and the Anne Arundel County Police Department, including the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County and Anne Arundel County Police Departments. FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore. The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.
Special Assistant U.S. Attorney John C. Hanley of the Justice Department’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher J. Romano and Daniel Gardner of the District of Maryland prosecuting the case.
Current and Former Springfield Police Officers Indicted for Unreasonable Force Against Two JuvenilesRead the Press Release
Two Springfield Police Officers, one current and one former officer, were arrested today and charged in federal court in Springfield, Massachusetts, on allegations that they used unreasonable force against two Latino juveniles during an arrest. One of the officers is also charged with threatening the juveniles during an interrogation and falsifying subsequent reports regarding the incident. Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division; United States Attorney Andrew E. Lelling; and Harold H. Shaw, Special Agent in Charge of the FBI, Boston Field Division, made the announcement.
Gregg A. Bigda, 48, of Wilbraham, was charged in an indictment unsealed today with three counts of violating the civil rights of arrestees and one count of obstructing justice by writing a false report. Steven M. Vigneault, 48, of East Longmeadow, was charged in the same indictment with one count of violating the civil rights of an arrestee.
The indictment charges that, on Feb. 27, 2016, Bigda used unreasonable force against a juvenile, and that afterward, Bigda spat on him and said, “Welcome to the white man’s world.” The indictment further charges that Vigneault used unreasonable force against a different juvenile. According to the indictment, both uses of force involved the use of dangerous weapon and resulted in bodily injury.
"Even in the face of adversity, law enforcement officers are expected to conduct themselves professionally, respectfully, and with integrity,” said U.S. Attorney Andrew E. Lelling. “They are ambassadors for the rule of law, and when they themselves break those laws, they violate not just the rights of their victims, but compromise the public's trust in law enforcement. My Office is committed to holding our public servants accountable under the law and prosecuting those who abuse their positions of power."
"Most law enforcement officers are dedicated, honest, and fully committed to building trust within their communities, but those who break the law stain the reputation of the law enforcement profession,” said Harold H. Shaw, Special Agent in Charge of the FBI, Boston Field Division. “Badges and guns do not come with the authority to ignore the Constitution or the rights of others, and those who violate it will be held accountable."
The indictment further alleges that after the arrests, Bigda interrogated the juveniles without their parents present and without reading them their Miranda rights, and that, during the course of the interrogations, Bigda threatened the juveniles in a number of different ways. For example, Bigda made the following threats against the first juvenile: to “crush [the juvenile’s] skull and [expletive] get away with it,” “bring the dog back [and] let him [expletive] go after” the juvenile; “[expletive] kill [the juvenile] in the parking lot”; “charge [the juvenile] with killing Kennedy and [expletive] make it stick,” “stick a [expletive] kilo of coke in [the juvenile’s] pocket and put [the juvenile] away for [expletive] 15 years,” and “kick [the juvenile] right in the [expletive] face as soon as [they] cross the Springfield line.” Bigda made the following threats against the second juvenile: to “beat the [expletive] out of [the juvenile],” “tune [the juvenile] the [expletive] up,” and “bloody [the juvenile’s] body.”
Bigda subsequently attempted to obstruct the investigation into the assaults on the juveniles by falsifying his reports to the Springfield Police Department Internal Investigations Unit, allegedly writing that he did not kick anyone or see any officer kick anyone during the course of the arrests of the juveniles. Bigda filed a second report in which he denied spitting on anyone or yelling “welcome to the white man’s world” during the arrest of the juveniles.
The charges of depriving arrestees of their civil rights carry a maximum possible sentence of 10 years for counts alleging that a dangerous weapon was used or that bodily injury resulted, and a maximum sentence of one year for the charges that allege no weapon or injury. The charges of falsifying a police report provide for a maximum possible sentence of 20 years. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorneys Deepika Bains Shukla and Katharine Wagner of Lelling’s Springfield Branch Office and Trial Attorney Christopher J. Perras of the Department of Justice’s Civil Rights Division are prosecuting the case.
Wisconsin Man Convicted of Conspiring to Provide Material Support to ISISRead the Press Release
On Oct. 25, 2018, Jason Michael Ludke, of Milwaukee, pled guilty to conspiring to provide material support or resources to the Islamic State of Iraq and Syria (ISIS), in violation of Title 18, United States Code, Section 2339B(a)(1). Assistant Attorney General for National Security John C. Demers, United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin and Special Agent-in-Charge R. Justin Tolomeo of the FBI’s Milwaukee Division made the announcement today.
According to the plea agreement, Ludke and a co-conspirator agreed that they would travel through Mexico to Syria and Iraq in order to join ISIS and to work under its direction and control. Ludke also recorded a video of himself pledging his allegiance to the leader of ISIS, Abu Bakr al-Baghdadi, and stating that he was ready to join ISIS. Ludke told an FBI Undercover Employee (UCE), who Ludke believed was assisting in the travel plans, that Ludke had training in jiu-jitsu and computers, which Ludke believed would benefit ISIS. On Oct. 5, 2016, Ludke and his coconspirator were traveling to the Texas/Mexico border in order to accomplish their plan to join ISIS (in Syria or Iraq), when law enforcement located and arrested them.
Ludke has prior convictions for child sexual assault and for making death threats against a federal judge. Also according to the plea agreement, Ludke was on probation at the time he was arrested and had cut the tracking device from his ankle before leaving Wisconsin.
“This conviction demonstrates the United States’ resolute commitment to protecting our country and combatting foreign terrorism,” United States Attorney Krueger said. “Individuals like Ludke who seek to provide material support to ISIS will be held accountable.”
“The FBI’s number one priority is protecting Americans from terrorism,” said Special Agent-in-Charge Justin Tolomeo. “I commend our Joint Terrorism Task Force (JTTF), which includes our local, state and federal partners, for their investigative efforts in identifying and arresting Jason Ludke that prevented him from joining the ISIS terror group.”
Ludke faces a maximum term of imprisonment of 20 years, a maximum term of supervised release of life, and a maximum fine of $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the FBI and the JTTF and is being prosecuted by Assistant United States Attorneys Paul Kanter and Benjamin Taibleson and Trial Attorney Jolie F. Zimmerman of the Department’s Counterterrorism Section.
Two Home Health Agency Owners and Two Employees Convicted for Roles in $3.7 Million Home Health Fraud SchemeRead the Press Release
A federal jury found two home health owners and two employees guilty today for their roles in a scheme to bill Medicare and Medicaid for over $3.7 million in charges when the owners had previously been excluded from participating in federal health care benefit programs.
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 C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge Eric Jackson of the FBI’s Dallas Field Office and Director of Law Enforcement David Maxwell of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
After a six-day trial, Celestine “Tony” Okwilagwe, 50, of Dallas County, Texas; Paul Emordi, 52, of Collin County, Texas; Adetutu Etti, 60, also of Dallas County; and Loveth Isidaehomen, 49, also of Dallas County, were each convicted of one count of conspiracy to commit health care fraud. In addition, Okwilagwe and Etti were each convicted of two counts of false statement in connection with a health care benefit program. Sentencing before U.S. District Judge Jane Boyle of the Northern District of Texas, who presided over the trial, has not yet been scheduled.
According to evidence presented at trial, Okwilagwe and Emordi owned and operated Elder Care, a Medicare and Medicaid provider in Garland, Texas, when both were previously excluded from participating in any federal health care benefit program. Etti, the administrator of Elder Care, concealed Okwilagwe’s ownership and Okwilagwe and Emordi’s exclusions from Medicare and Medicaid. Etti signed false documents that indicated that no one associated with Elder Care was excluded and that another individual owned Elder Care, the evidence showed. The evidence further established that Isidaehomen signed bank documents and wrote employee paychecks to conceal the involvement of her husband, Okwilagwe. The defendants also engaged in a scheme to submit false and fraudulent bills to Medicare for services that were not needed, the evidence showed.
Evidence at trial demonstrated that Elder Care billed Medicare and Medicaid for over $3.7 million for claim reimbursements to which it was not entitled because Okwilagwe and Emordi were excluded from Medicare.
This case was investigated by HHS-OIG, the FBI, and MFCU. Assistant Deputy Chief Adrienne Frazior and Trial Attorney Catherine Wagner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Russell Fusco of the Northern District of Texas 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.
Texas Businessman Pleads Guilty to Money Laundering Charges in Connection with Venezuela Bribery SchemeRead the Press Release
A former procurement officer of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), pleaded guilty today for his role in an international money laundering scheme involving bribes paid by the owners of U.S.-based companies to Venezeulan government officials in exchange for securing additional business with PDVSA and payment priority on outstanding invoices.
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 Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Ivan Alexis Guedez (Guedez), 47, of Katy, Texas, pleaded guilty before U.S. Magistrate Judge Christina A. Bryan of the Southern District of Texas in Houston to one count of conspiracy to launder money. Guedez is scheduled to be sentenced on Feb. 20, 2019 by U.S. District Judge Gray H. Miller of the Southern District of Texas.
According to admissions made in connection with Guedez’s plea, Guedez agreed with other PDVSA officials and businessmen who were employed by a Miami-based PDVSA supplier that, in exchange for bribe payments, Guedez and the other PDVSA officials would direct PDVSA business toward the supplier. The co-conspirators who were employed by the PDVSA supplier also received kickbacks. Guedez and his co-conspirators concealed the corrupt payments by, among other things, communicating using fictitious email addresses, creating false invoices to justify the payments, and directing the bribe payments to a Swiss account in the name of a shell company before being disbursed to the co-conspirators.
As part of his plea agreement, Guedez has agreed to forfeit the proceeds of his criminal activity.
Guedez becomes the latest individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Including Guedez, the Justice Department has announced the guilty pleas of a total of 15 individuals in connection with the investigation.
HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Madrid, as well as from IRS Criminal Investigation. Trial Attorneys Jeremy R. Sanders, Sarah E. Edwards and Sonali Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Cayman Islands Mutual Legal Assistance Authority and Office of the Director of Public Prosecution also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Justice Department Reports Major Increases in Victim Reporting and Number of Lawsuits Filed in One Year Since Launch of Initiative to Combat Sexual Harassment in HousingRead the Press Release
The Justice Department today announced the one-year anniversary of its initiative to combat sexual harassment in housing. Since its launch in October 2017 and nationwide expansion in April 2018, the Department has seen a major upswing in both reporting and enforcement. Over the past year, the Department has:
- Opened 34 new sexual harassment matters. This is more than any previous year and nearly five times the number of matters opened in the prior year.
- Filed six pattern-or-practice lawsuits challenging alleged sexual harassment in housing. This is more than the Department has filed in any previous year.
- Western District of Michigan - United States v. Tjoelker,
- District of Kansas - United States v. Cao Properties and Rentals,
- Southern District of Ohio - United States v. Klosterman,
- Northern District of New York - United States v. Waterbury,
- Northern District of Alabama - United States v. Hames,
- Western District of Oklahoma - United States v. Pelfrey.
“This important initiative is giving a voice to victims of sexual harassment in housing. It also sends the strong message that the Department is listening to victims and taking action against landlords and managers who attempt to prey on vulnerable individuals all over the country,” said Acting Assistant Attorney General John Gore for the Civil Rights Division. “The Justice Department remains committed to our goal to make more people aware that no one should have to choose between a home and the right to be free from sexual harassment.”
“A home can never be a place of peace and comfort for individuals who are subjected to sexual harassment,” said Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “We still have work to do, but the initiative has taken tremendous steps this past year toward addressing this unlawful behavior and the Justice Department and HUD remain committed to doing even more to inform the public about their housing rights.”
The Department took several steps this past year to drive an increase in reporting and enforcement.
First, the Department held 20 roundtables about sexual harassment in housing at U.S. Attorneys’ Offices across the country. At these events, the Department creates opportunities for collaboration with local community partners, including engaging local law enforcement officers, legal aid offices, fair housing organizations, universities, civil rights organizations, and other groups.
U.S. Attorney Roundtables Hosted this Year:
Central District of California
District of Colorado
Middle District of Florida
Northern District of Georgia
Northern District of Iowa
District of Maryland
District of Massachusetts
Eastern District of Michigan
District of Minnesota
District of New Jersey (2)
Eastern & Southern Districts of New York (joint)
Northern District of Ohio
Eastern District of Pennsylvania
District of South Dakota
Northern District of Texas
District of Vermont
Western District of Virginia (2)
Second, the Department created an outreach toolkit designed to leverage the nationwide network of U.S. Attorney’s Offices and boost local outreach about sexual harassment in housing.
Third, the Department released a Public Service Announcement (PSA), in conjunction with the U.S. Department of Housing and Urban Development (HUD), featuring three women who were identified as victims of sexual harassment in DOJ lawsuits. The Department developed a 60-second video featuring three women who were injured parties in sexual harassment lawsuits brought by the Department under the Fair Housing Act. In the PSA, the women, in their own words, share the stories of how they were harassed and the impact the experience has on their lives. The PSA is posted on the Department’s YouTube channel.
Fourth, the Department launched a webpage on sexual harassment in housing. It is available in both English and Spanish. The webpage has resources available to download. This includes a partnership toolkit, flyers in 11 languages (English, Spanish, Arabic, Chinese (simplified), Chinese (traditional), Haitian Creole, Hindi, Korean, Tagalog, Urdu, and Vietnamese), palm cards in English and Spanish, and information sheets for advocates in English and Spanish.
Finally, the Department and HUD launched a new Task Force to Combat Sexual Harassment in Housing. It is focused on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies. The Task Force has facilitated collaboration between DOJ and HUD in drawing attention to the national PSA, including distributing it to public housing authorities, on HUD’s YouTube channel, and through social media.
More information about the Civil Rights Division and the civil rights laws it enforces is available at justice.gov/crt. If you believe you may be a victim of sexual harassment in housing, you should:
- call the Justice Department at 1-844-380-6178,
- send an e-mail to [email protected], or
- contact HUD at 1-800-669-9777.
If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.
Justice Department Continues to Protect the Right to Vote and Prosecute Ballot FraudRead the Press Release
In anticipation of the upcoming general elections, the Department of Justice today provided information about its efforts through the Civil Rights Division and Criminal Division to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process.
“Voting rights are constitutional rights, and they’re part of what it means to be an American,” Attorney General Jeff Sessions said. “The Department of Justice has been entrusted with an indispensable role in securing these rights for the people of this nation. This year we are using every lawful tool that we have, both civil and criminal, to protect the rights of millions of Americans to cast their vote unimpeded at one of more than 170,000 precincts across America. Citizens of America control this country through their selection of their governmental officials at the ballot box. Likewise, fraud in the voting process will not be tolerated. Fraud also corrupts the integrity of the ballot.”
Civil Rights Division:
The Civil Rights Division is responsible for ensuring compliance with the civil provisions of federal statutes that protect the right to vote, and with the criminal provisions of federal statutes prohibiting discriminatory interference with that right.
The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including the Voting Rights Act, the Uniformed and Overseas Citizens Absentee Voting Act, the National Voter Registration Act, the Help America Vote Act, and the Civil Rights Acts. Among other things, collectively, these laws:
- prohibit election practices that have either a discriminatory purpose based on race or membership in a minority language group or a discriminatory result such that members of racial or language minority groups have less opportunity than other citizens to participate in the political process;
- prohibit intimidation of voters;
- provide that voters who need assistance in voting because of disability or illiteracy can obtain assistance from a person of their choice (other than agents of their employer or union);
- provide for accessible voting machines for voters with disabilities;
- provide for provisional ballots for voters who assert they are registered and eligible but whose names do not appear on poll books;
- provide for absentee registration and ballots for uniformed service members, their family members and U.S. citizens living abroad;
- provide that citizens can register to vote through drivers’ license, public assistance or disability services offices, and through the mail; and
- include requirements regarding maintaining voter registration lists.
The Civil Rights Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.
On Election Day, Nov. 6, 2018, the Civil Rights Division will implement a comprehensive program to help protect the right to vote that will include the following:
- The Civil Rights Division will conduct monitoring in the field at polling places around the country.
- Civil Rights Division staff in Washington, D.C., will be ready to receive election-related complaints of potential violations relating to any of the federal statutes the division enforces. The division will take appropriate action and will coordinate with other entities within the Department of Justice concerning these complaints before, during, and after Election Day.
- Civil Rights Division staff will be available to receive complaints related to voting by telephone (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-305-0082), by fax (202-307-3961), by email ([email protected]), and, by complaint form on the Department’s website at https://www.justice.gov/crt/voting-section.
Complaints related to violence, threats of violence, or intimidation at a polling place should always be reported immediately to local authorities by calling 911. They should also be reported to the Department after local authorities are contacted.
Criminal Division and the Department’s 94 U.S. Attorneys’ Offices:
The Department’s Criminal Division oversees the enforcement of federal laws that criminalize certain forms of election fraud and protect the integrity of the federal election process.
The Criminal Division’s Public Integrity Section and the Department’s 94 U.S. Attorneys’ Offices are responsible for enforcing the federal criminal laws that prohibit various forms of election fraud, such as vote buying, multiple voting, submission of fraudulent ballots or registrations, alteration of votes, and malfeasance by election officials. The Criminal Division is also responsible for enforcing federal criminal law prohibiting voter intimidation for reasons other than race, color, national origin, or religion (as noted above, voter intimidation that has a basis in race, color, national origin or, religion is addressed by the Civil Rights Division).
The U.S. Attorney’s Offices around the country designate Assistant U.S. Attorneys who serve as district election officers (DEOs) in the respective districts. DEOs are responsible for overseeing potential election-crime matters in their districts, and for coordinating with the Department’s election-crime experts in Washington, D.C.
On Nov. 6, the U.S. Attorneys’ Offices will work with specially trained FBI personnel in each district to ensure that complaints from the public involving possible voter fraud are handled appropriately. Specifically:
- In consultation with federal prosecutors at the Public Integrity Section in Washington, D.C., the District Election Officers in U.S. Attorneys’ Offices, FBI officials at Headquarters in Washington, D.C., and FBI special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open, to receive complaints from the public.
- Election-crime complaints should be directed to the local U.S. Attorney’s Offices or the local FBI office. A list of U.S. Attorneys’ Offices and their telephone numbers can be found at https://www.justice.gov/usao/find-your-united-states-attorney. A list of FBI offices and accompanying telephone numbers can be found at www.fbi.gov/contact-us.
- Public Integrity Section prosecutors are available to consult and coordinate with the U.S. Attorneys’ Offices and the FBI regarding the handling of election-crime allegations.
Complaints related to violence, threats of violence, or intimidation at a polling place should be reported first to local police authorities by calling 911.
Both protecting the right to vote and combating election fraud are essential to maintaining the confidence of all Americans in our democratic system of government. The Department encourages anyone with information suggesting voting discrimination or ballot fraud to contact the appropriate authorities, and notes in particular that the Department of Homeland Security plays its own important role in safeguarding critical election infrastructure from cyber and other threats.
Chinese Intelligence Officers and Their Recruited Hackers and Insiders Conspired to Steal Sensitive Commercial Aviation and Technological Data for YearsRead the Press Release
Chinese intelligence officers and those working under their direction, which included hackers and co-opted company insiders, conducted or otherwise enabled repeated intrusions into private companies’ computer systems in the United States and abroad for over five years. The conspirators’ ultimate goal was to steal, among other data, intellectual property and confidential business information, including information related to a turbofan engine used in commercial airliners.
The charged intelligence officers, Zha Rong and Chai Meng, and other co-conspirators, worked for the Jiangsu Province Ministry of State Security (“JSSD”), headquartered in Nanjing, which is a provincial foreign intelligence arm of the People’s Republic of China’s Ministry of State Security (“MSS”). The MSS, and by extension the JSSD, is primarily responsible for domestic counter-intelligence, non-military foreign intelligence, and aspects of political and domestic security.
From at least January 2010 to May 2015, JSSD intelligence officers and their team of hackers, including Zhang Zhang-Gui, Liu Chunliang, Gao Hong Kun, Zhuang Xiaowei, and Ma Zhiqi, focused on the theft of technology underlying a turbofan engine used in U.S. and European commercial airliners. This engine was being developed through a partnership between a French aerospace manufacturer with an office in Suzhou, Jiangsu province, China, and a company based in the United States. Members of the conspiracy, assisted and enabled by JSSD-recruited insiders Gu Gen and Tian Xi, hacked the French aerospace manufacturer. The hackers also conducted intrusions into other companies that manufactured parts for the turbofan jet engine, including aerospace companies based in Arizona, Massachusetts and Oregon. At the time of the intrusions, a Chinese state-owned aerospace company was working to develop a comparable engine for use in commercial aircraft manufactured in China and elsewhere.
Defendant Zhang Zhang-Gui is also charged, along with Chinese national Li Xiao, in a separate hacking conspiracy, which asserts that Zhang Zhang-Gui and Li Xiao leveraged the JSSD-directed conspiracy’s intrusions, including the hack of a San Diego-based technology company, for their own criminal ends.
“For the third time since only September, the National Security Division, with its US Attorney partners, has brought charges against Chinese intelligence officers from the JSSD and those working at their direction and control for stealing American intellectual property,” said John C. Demers, Assistant Attorney General for National Security. “This is just the beginning. Together with our federal partners, we will redouble our efforts to safeguard America’s ingenuity and investment.”
“State-sponsored hacking is a direct threat to our national security. This action is yet another example of criminal efforts by the MSS to facilitate the theft of private data for China’s commercial gain,” said U.S. Attorney Adam Braverman. “The concerted effort to steal, rather than simply purchase, commercially available products should offend every company that invests talent, energy, and shareholder money into the development of products.”
“The threat posed by Chinese government-sponsored hacking activity is real and relentless,” said John Brown, FBI Special Agent in Charge of the San Diego Field Office. “Today, the Federal Bureau of Investigation, with the assistance of our private sector, international and U.S. government partners, is sending a strong message to the Chinese government and other foreign governments involved in hacking activities. We are working together to vigorously investigate and hold hackers accountable regardless of their attempts to hide their illicit activities and identities.”
On October 10, the Department of Justice announced that a JSSD intelligence officer was extradited to the Southern District of Ohio, on charges that he attempted to steal trade secrets related to jet aircraft engines, and in September, in the Northern District of Illinois, a U.S. Army recruit was charged with working as an agent of a JSSD intelligence officer, without notification to the Attorney General.
As the indictment in the Southern District of California describes in detail, China’s JSSD intelligence officers and hackers working at their direction masterminded a series of intrusions in order to facilitate intrusions and steal non-public commercial and other data. The hackers used a range of techniques, including spear phishing, sowing multiple different strains of malware into company computer systems, using the victim companies’ own websites as “watering holes” to compromise website visitors’ computers, and domain hijacking through the compromise of domain registrars.
The first alleged hack began no later January 8, 2010, when members of the conspiracy infiltrated Capstone Turbine, a Los-Angeles-based gas turbine manufacturer, in order to steal data and use the Capstone Turbine website as a “watering hole.”
China’s intelligence service also sought, repeatedly, to hack into a San Diego-based technology company from at least August 7, 2012 through January 15, 2014, in order to similarly steal commercial information and use its website as a “watering hole.”
Chinese actors used not only hacking methods to conduct computer intrusions and steal commercial information, they also coopted victim company employees. From at least November 2013 through February 2014, two Chinese nationals working at the direction of the JSSD, Tian Xi and Gu Gen, were employed in the French aerospace company’s Suzhou office. On January 25, 2014, after receiving malware from an identified JSSD officer acting as his handler, Tian infected one of the French company’s computers with malware at the JSSD officer’s direction. One month later, on February 26, 2014, Gu, the French company’s head of Information Technology and Security in Suzhou, warned the conspirators when foreign law enforcement notified the company of the existence of malware on company systems. That same day, leveraging that tip-off, conspirators Chai Meng and Liu Chunliang tried to minimize JSSD’s exposure by causing the deletion of the domain linking the malware to an account controlled by members of the conspiracy.
The group’s hacking attempts continued through at least May of 2015, when an Oregon-based company, which, like many of the other targeted companies, built parts for the turbofan jet engine used in commercial airliners, identified and removed the conspiracy’s malware from its computer systems.
Count Two of the indictment charges a separate conspiracy to hack computers in which Zhang Zhang-Gui, a defendant charged in Count One, supplied his co-defendant and friend, Li Xiao, with variants of the malware that had been developed and deployed by hackers working at the direction of the JSSD on the hack into Capstone Turbine. Using malware supplied by Zhang, as well as other malware, Li launched repeated intrusions that targeted a San Diego-based computer technology company for more than a year and a half. These intrusions caused thousands of dollars of damage to protected computers.
Count Three of the indictment charges Zhang Zhang-Gui with the substantive offense of computer hacking a San Diego technology company, which was one of the targets of the conspiracies alleged in Counts One and Two.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The FBI, led by the San Diego Field Office, conducted the investigation that resulted in charges announced today. This case is being prosecuted by Alexandra Foster and Sabrina Fève of the United States Attorney’s Office for the Southern District of California and Jason McCullough of the National Security Division’s Counterintelligence and Export Control Section. The Criminal Division’s Office of International Affairs also provided assistance in this matter, and the Department appreciates the cooperation and assistance provided by France’s General Directorate for Internal Security (DGSI) and the Cybercrime Section of the Paris Prosecutor’s Office during the investigation of this matter.
Case Number: 13CR3132-H
Businessman Indicted for Conspiring to Bribe Senior Government Officials of the Republic of HaitiRead the Press Release
A businessman was charged in a superseding indictment filed today for his alleged participation in a scheme to bribe senior government officials of the Republic of Haiti in connection with a planned $84 million port development project, and to launder funds in order to promote the bribery. An alleged co-conspirator was previously charged in the original indictment.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling of the District of Massachusetts, Assistant Director Christopher Hacker of the FBI’s Criminal Investigative Division and Special Agent in Charge Harold M. Shaw of the FBI’s Boston Field Office made the announcement.
Roger Richard Boncy, 74, a dual U.S. and Haitian citizen who resides in Madrid, Spain, was charged in a superseding indictment filed in the District of Massachusetts with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and the Travel Act, one count of violating the Travel Act and one count of conspiracy to commit money laundering. The superseding indictment also charges Boncy’s co-conspirator, Joseph Baptiste, DDS, 66, of Fulton, Maryland, with the same crimes. Baptiste was originally charged by indictment in this case in October 2017. Baptiste’s trial is scheduled to begin on Dec. 3, in the District of Massachusetts in Boston.
The superseding indictment alleges that Boncy and Baptiste solicited bribes from undercover agents posing as potential investors in connection with a proposed project to develop a port in the Mȏle St. Nicolas area of Haiti. The proposed project was expected to cost approximately $84 million and was to involve the construction of multiple cement factories, a shipping-vessel recycling station, an international transshipment station with numerous slips for shipping vessels, a power plant, a petroleum depot and tourist facilities.
During a recorded meeting at a Boston-area hotel, Boncy and Baptiste allegedly told the agents that, in order to secure Haitian government approval of the project, they would funnel the payments to Haitian officials through a non-profit entity that Baptiste controlled, which was based in Maryland and purported to help impoverished residents of Haiti. In intercepted telephone calls, Boncy and Baptiste also allegedly discussed bribing an aide to a high-level elected official in Haiti with a job on the port development project, in exchange for the aide’s help in obtaining the elected official’s authorization for the project.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Boston Field Office and International Corruption Unit investigated the case. Trial Attorney Elina A. Rubin-Smith of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kriss Basil of the District of Massachusetts are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Algerian Man is Sentenced to 15 Years’ Imprisonment for Conspiring with Pennsylvania Woman and Others to Provide Material Support to TerroristsRead the Press Release
Assistant Attorney General for National Security John C. Demers and United States Attorney William M. McSwain for the Eastern District of Pennsylvania announced that an Algerian man was sentenced today to 15 years’ imprisonment for conspiring to provide material support and resources to terrorists. United States District Judge Petrese B. Tucker presided over the proceeding.
Ali Charaf Damache, 53, also known as Theblackflag, was indicted in 2011 in the Eastern District of Pennsylvania on one count of conspiracy to provide material support to terrorists and one count of attempted identity theft to facilitate an act of international terrorism. He was extradited from Spain in 2017 and pleaded guilty in July 2018. Upon completing his prison sentence, he will be removed from the United States and return to Ireland, where he is a citizen, or alternatively, Algeria.
Damache, his co-defendant Mohammad Hassan Khalid, and others conspired to support, recruit, and coordinate a terrorist cell, consisting of men and women from Europe and the United States, to wage violent jihad in and around Europe. Jamie Paulin Ramirez, a resident of Colorado, and Colleen R. LaRose, aka Fatima LaRose, aka JihadJane, a resident of the Eastern District of Pennsylvania are among Damache’s co-conspirators.
Though there were several involved in the conspiracy, Damache was the force behind the terrorist cell he formed. He enticed LaRose and Ramirez to travel to Ireland live with him and train in the ways of violent jihad; convinced Khalid, LaRose and others to recruit men online to wage violent jihad in South Asia and Europe; and began to coordinate explosives training for his co-conspirators. He also trained Ramirez’s son in the ways of violent jihad, on one occasion taking him to a public park for physical training that scared him.
“At a time when radical terrorist groups use the Internet to recruit new members and coordinate attacks against innocent people, the National Security Division remains committed to investigating all possible threats to our country aggressively — including those that take place online,” said Assistant Attorney General Demers. “Through close cooperation with our international law enforcement partners and the dedicated work of our agents and prosecutors, we have brought Damache to justice. The sentence in this case and order of removal have made the United States safer, and I applaud the women and men throughout the law enforcement community who made it happen.”
“Today’s sentencing marks the end of a long and arduous prosecution that has spanned more than nine years, involved four defendants and five unnamed co-conspirators, and required multiple coordinated international arrests and two extradition applications,” said United States Attorney McSwain. “Damache and his co-conspirators were motivated by hate and prejudice, and their criminal activities presented a very real danger to our country and the world. This case is a prime example of the remarkable results we can accomplish when law enforcement – both foreign and domestic – work together to stop our enemies who intend to wage war on our way of life. As this case shows, our resolve to dismantle extremists groups is stronger than ever.”
This case was investigated by the FBI's Joint Terrorism Task Force in New York and the FBI Field Divisions in New York, Denver, Baltimore and Washington, D.C., and the IRS. The Justice Department’s Office of International Affairs and authorities in Spain provided substantial assistance. Authorities in Ireland also provided assistance in this matter.
The case is being prosecuted Trial Attorneys Matthew F. Blue and C. Alexandria Bogle of the National Security Division’s Counterterrorism Section, and First Assistant U.S. Attorney Jennifer Arbittier Williams and Assistant U.S. Attorney Sarah M. Wolfe of the Eastern District of Pennsylvania.
Owner of Colorado Business Pleads Guilty to Tax CrimeRead the Press Release
An Arvada, Colorado, woman pleaded guilty today to one count of willfully making and subscribing to a fraudulent corporate income tax return announced Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Marlene Seo owned and operated a corporation called National Martial Arts Academy Inc., a martial arts instruction business. From 2011 through 2013, income from Seo’s martial arts school was deposited into bank accounts that she did not disclose to the corporation’s bookkeeper and accountants, which resulted in her underreporting the business’s gross receipts on corporate tax returns for tax years 2011, 2012, and 2013 by approximately $650,000. Seo plead guilty to signing and filing a false 2012 U.S. Corporation Income Tax Return, Form 1120, filed on behalf of National Martial Arts Academy.
Sentencing is scheduled for February 1, 2019. Seo faces a maximum sentence of three years in prison. She also faces a term of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Anahi Cortada and Lisa L. Bellamy, who are prosecuting the case.
Justice Department Releases Update on Hate Crimes Prosecutions and Announces Launch of New Hate Crimes WebsiteRead the Press Release
The Department today released an update on hate crimes and announced the launch of a new comprehensive hate crimes website designed to provide a centralized portal for the Department’s hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other related organizations and individuals. The resources include training materials, technical assistance, videos, research reports, statistics, and other helpful information from all of the Department components working on hate crimes.
In recent years, the Department has ramped up its hate crimes prosecution program and increased training of federal, state, and local law enforcement officers to ensure that hate crimes are identified and prosecuted to the fullest extent possible. The Department of Justice Law Enforcement Roundtable on Improving the Identification and Reporting of Hate Crimes being conducted today and tomorrow through the Department’s Hate Crimes Enforcement and Prevention Initiative is an example of ongoing efforts to spur communication and cohesion among those in the field working on hate crimes.
Over the past 10 years, the Department of Justice has charged more than 300 defendants with hate crimes offenses, including 50 defendants in FY 2017 and 2018. In FY 2018, the Department charged 27 defendants in 22 cases, and obtained 30 convictions. Since January 2017, the Department has indicted 50 defendants involved in committing hate crimes and secured convictions of 51 defendants for hate crimes incidents.
At today’s roundtable, Deputy Attorney General Rod Rosenstein announced additional new efforts to assist in combatting hate crimes, including an $840,000 grant from the National Institute of Justice (NIJ) for a new research study on hate crimes data collection, and the extension of technical assistance resources relating to hate crimes through the Department’s Collaborative Reform Initiative. The website, the roundtable, the NIJ grant, and the Collaborative Reform resources are just some of the Department’s efforts that reflect discussions with law enforcement, advocates, faith leaders, and community members at the Department’s Hate Crimes Summit and National Summit on Crime Reduction and Public Safety in June 2017.
“Individuals should be able to live their lives free from the threat of violence and discrimination, no matter who they are, what they believe, or how they worship,” said Acting Assistant Attorney General John Gore. “I am proud of the work that the Civil Rights Division and our partners in the U.S. Attorneys’ offices have accomplished working with the FBI and our state and local law enforcement partners. We will continue to prioritize our work bringing perpetrators of hate crimes to justice throughout the country.”
Recent Department work on hate crimes prosecutions:
- On Saturday, within hours of the shooting at the Tree of Life Jewish Synagogue, the Department filed hate crime and other charges against the defendant Robert Bowers. The criminal complaint charges Bowers with 29 counts setting forth federal crimes of violence and firearms offenses. The crimes of violence are based upon the federal civil rights laws prohibiting hate crimes.
- This month, a Texas man was sentenced to almost 25 years in prison for a hate crime relating to the 2017 burning of a mosque in Victoria, Texas. A jury found him guilty on July 16 for a hate crime in the burning of the Victoria Islamic Center (the mosque) on Jan. 28, 2017, and for the use of fire to commit a federal felony.
- In September, a Florida man was sentenced to four years in prison, three years’ supervised release, and $1,800 in restitution for obstructing the free exercise of religious beliefs by threatening, in a phone message, to detonate a bomb at a mosque in Pembroke Pines, Florida.
- In August, a Kansas man who shot three men at a bar in Olathe was sentenced to life in prison without parole. The defendant killed one victim, and attempted to kill a second victim, because of their actual or perceived race, color, religion, or national origin. The defendant fired his weapon at a third man who had chased the defendant after the attack. Earlier this year, the defendant plead guilty to hate crimes, firearms, attempted murder, and murder charges. According to the agreement he signed when he plead guilty, the defendant went up to the victims in a bar, demanded to know how they came into the United States, and called one victim a “terrorist.”
- In June, an Ohio man was charged with federal hate crimes including a hate crime act that resulted in the death of Heather Heyer, for his actions during the Aug. 12, 2017 “Unite the Right Rally” in Charlottesville.
The Department continues to conduct training and outreach programs in order to work with the network of U.S. Attorney’s Offices, local communities and organizations, and law enforcement to find, identify, investigate, and prosecute hate crimes cases all over the country. These programs include state and local law enforcement trainings, roundtable and panel discussions, stakeholder telephone conferences, and hate crime summits.
More information about the Department’s hate crimes efforts, along with a searchable collection of the Department’s resources for law enforcement, community groups, researchers and others, are available on the new webpage, www.justice.gov/hatecrimes.
Former Swiss Bank Executive Sentenced to Prison for Role in Billion-Dollar International Money Laundering Scheme Involving Funds Embezzled from Venezuelan State-Owned Oil CompanyRead the Press Release
The former managing director and vice chairman of a Swiss bank was sentenced to 10 years in prison today, after previously pleading guilty for his role in a billion-dollar international scheme to launder funds embezzled from Venezuelan state-owned oil company Petróleos de Venezuela, S.A. (PDVSA).
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.
Matthias Krull, 44, a German national and Panamanian resident, pleaded guilty to one count of conspiracy to commit money laundering, on Aug. 22. U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida sentenced Krull to serve 120 months in prison, to be followed by three years of supervised release. Judge Altonaga also ordered Krull to pay a fine in the amount of $50,000 and a forfeiture money judgment of $600,000.
As part of his plea, Krull admitted that in his position with the Swiss bank, he attracted private clients, particularly clients from Venezuela, to the bank. In this role, Krull’s clients included Francisco Convit Guruceaga, who was indicted on money laundering charges on Aug. 16. Krull’s clients also included three unnamed conspirators described in the Aug. 16 indictment.
Krull admitted that the conspiracy began in December 2014 with a currency exchange scheme that was designed to embezzle around $600 million from PDVSA, obtained through bribery and fraud and the conspirators’ efforts to launder a portion of the proceeds of that scheme. By May 2015, the conspiracy had doubled in amount to $1.2 billion embezzled from PDVSA. PDVSA is Venezuela’s primary source of income and foreign currency (namely, U.S. Dollars and Euros). Krull joined the conspiracy in or around 2016, he admitted, when a co-conspirator contacted him to launder the proceeds of a PDVSA foreign-exchange embezzlement scheme.
Ultimately, Krull joined the conspiracy to launder $1.2 billion worth of funds that were embezzled from PDVSA, he admitted. Krull and members of the money laundering conspiracy used Miami, Florida real estate and sophisticated false-investment schemes to conceal that the $1.2 billion was in fact embezzled from PDVSA. Krull also admitted that surrounding and supporting these false-investment laundering schemes are complicit money managers, brokerage firms, banks and real estate investment firms in the United States and elsewhere, operating as a network of professional money launderers.
Krull’s co-conspirators indicted on Aug. 16 include former PDVSA officials, professional third-party money launderers and members of the Venezuelan elite, sometimes known as “boliburgués.”
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force’s (OCDETF) “Operation Money Flight,” a partnership among federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
The investigation was conducted by HSI Miami, HSI London, HSI Rome and HSI Madrid. This case is being prosecuted by Assistant Chief David Johnson and Trial Attorney Gwendolyn A. Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael Nadler of the Economic and Environmental Crimes Section of the Southern District of Florida. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida is handling the asset forfeiture.
The Criminal Division’s Office of International Affairs provided substantial assistance in this matter; the National Crime Agency of the United Kingdom; and Italian, Spanish and Maltese law enforcement authorities provided assistance.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Deputy Attorney General Rosenstein Announces Funds and Technical Assistance Resources to Help Law Enforcement Investigate and Prosecute Hate Crimes at Law Enforcement RoundtableRead the Press Release
Deputy Attorney General Rod Rosenstein today announced a grant of more than $840,000 to the University of New Hampshire to conduct a national survey of hate crime incidents and victimization. He also announced that a $10 million dollar technical assistance program launched last March by Attorney General Sessions will now include the prosecution and prevention of hate crimes. For the first time, law enforcement will be able to access critical and innovative education and training resources on hate crimes investigation and prevention. The announcements were made at the Department of Justice Law Enforcement Roundtable on Improving the Identification and Reporting of Hate Crimes, hosted by the Department’s Hate Crimes Enforcement and Prevention Initiative. Acting Assistant Attorney General John Gore for the Civil Rights Division, Phil Keith, Director of Community Oriented Policing Services (COPS), and Matt M. Dummermuth, Office of Justice Programs (OJP) Principal Deputy Assistant Attorney General joined the Deputy Attorney General in making the announcement.
“Today’s roundtable brings together two of the Department’s highest priorities: supporting our state and local law enforcement partners, and deterring bias-motivated crimes,” said Deputy Attorney General Rosenstein. “We will continue to work with our partners to prevent hate crimes and make all of our neighborhoods free from violence and fear.”
“Hate crimes are an attack on a fundamental principle of the United States to be free from fear of violence because of your sexual orientation, gender identity, race, color, religion, or national origin,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice is committed to using every tool at its disposal to combat this type of violence and the grants announced today at the law enforcement roundtable will help strengthen our ability to identify and prosecute these violent hate crimes.”
“In all facets of our work, we must ensure that we understand the needs of law enforcement. That is why it is my top priority to ensure that we are always listening to the field, rather than telling the field what it needs,” said COPS Director Phil Keith. “Through programs like today’s roundtable and the extension of Collaborative Reform technical assistance to hate crimes, we can offer the support and assistance that state, local, and tribal law enforcement agencies request to improve their own hate crimes efforts.”
“Crimes motivated by racial, ethnic, sexual or religious animus carry a particularly vile moral quality, but because they are defined, recorded and investigated differently across states, we do not fully comprehend their impact on public safety,” said Dummermuth. “This study will shed new light on the prevalence and character of hate offending in the United States, and even better, it will show us what policies and practices are working to solve these crimes, bring perpetrators to justice and deliver support to victims.”
The Department is committed to enforcing federal hate crimes statutes, including the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act of 2009 (HCPA), which allow the Department to prosecute certain crimes that are committed because of the actual or perceived race, color, religion, national origin, gender, sexual orientation, gender identity, or disability of any person. The day and a half long law enforcement roundtable joins over fifty law enforcement executives from agencies around the country to explore successful practices and challenges in identifying, reporting, and tracking hate crimes. The roundtable was designed to spur discussions between colleagues about challenges to hate crimes data collection, practical tips on overcoming barriers, and strategies to most efficiently track and prosecute perpetrators of hate crimes nationwide. A report will be issued after the roundtable summarizing the discussion of best practices for law enforcement seeking to improve their agencies’ investigation and reporting of hate crimes.
The multi-phase study, funded by the National Institute of Justice (NIJ) in the Department’s Office of Justice Programs, will provide detailed data about hate crimes, analyze local policies that impact hate crime reporting, and identify successful investigation and prosecution strategies. The study will survey 3,000 law enforcement agencies to collect information on rates of reported hate crime incidents, gather profiles of hate crime offenders, and capture challenges in defining, investigating and documenting hate crimes. The second follow-up phase will survey 250 prosecutors about cases that ended in arrest. The study will run through 2021 and include a report on the findings.
The extension of technical assistance relating to hate crimes by the Collaborative Reform Technical Assistance Center, a partnership with the International Association of Chiefs of Police (IACP), and eight leading law enforcement leadership and labor organizations, will allow law enforcement to build and improve their hate crimes investigation and reporting practices.
The Department has created and launched a number of training and outreach programs in order to work with the network of U.S. Attorney’s Offices, local communities and organizations, and law enforcement to find, identify, investigate, and prosecute hate crimes cases all over the country. These programs include state and local law enforcement trainings, roundtable and panel discussions, stakeholder telephone conferences, and hate crime summits. More information about the Department’s hate crimes efforts, along with a searchable collection of the Department’s resources for law enforcement, community groups, researchers and others, are available on a new DOJ webpage, launched today: www.justice.gov/hatecrimes.
In addition to today’s award, OJP provides indirect support for hate crime programs through several OJP components, such as the Bureau of Justice Statistics, the Bureau of Justice Assistance and the Office for Victims of Crime. More information about OJP’s programs is available at: www.ojp.gov.
The Office of Justice Programs, headed 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 (SMART). More information about OJP and its components can be found at www.ojp.gov.
CRS Collaborates on Creation of DOJ Hate Crimes WebsiteRead the Press Release
The Community Relations Service (CRS) collaborated with other components of the Department of Justice (DOJ) to develop the Hate Crimes Website, which officially launched on Monday, October 29, 2018.
The new website provides a centralized portal for the DOJ’s hate crimes resources for victims, law enforcement, researchers, civil rights groups, media, and other related organizations and individuals. The resources include training materials, technical assistance, videos, research reports, statistics, and other helpful information from all the DOJ components working on hate crimes.
Combatting hate crimes is one of the Department’s highest priorities. The Department combats hate crimes through prevention, education, outreach, data collection, and support for state, local, and tribal law enforcement. In addition to CRS, the DOJ components involved in the creation of the website are the Civil Rights Division, Criminal Division, Executive Office for United States Attorneys, Federal Bureau of Investigation, Office of Community Oriented Policing Services, and Office of Justice Programs.
We encourage you to visit the hate crimes website to learn more about how you can help prevent and respond to hate crimes in your community. For more information, please refer to the following DOJ press releases:
Justice Department Releases Update on Hate Crimes Prosecutions and Announces Launch of New Hate Crimes Website (October 29, 2018)
Deputy Attorney General Rod J. Rosenstein Delivers Remarks at a Law Enforcement Roundtable Regarding Improving Identification and Reporting of Hate Crimes (October 29, 2018)
Deputy Attorney General Rosenstein Announces Funds and Technical Assistance Resources to Help Law Enforcement Investigate and Prosecute Hate Crimes at Law Enforcement Roundtable (October 29, 2018)
Aux Sable Liquid Products Agrees to Take Measures to Resolve Clean Air Act Violations at its Natural Gas Processing Facility in Morris, IllinoisRead the Press Release
Today, the U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) announced a settlement that requires Aux Sable Liquid Products LP (Aux Sable) to strengthen air pollution controls and reduce air pollution at its natural gas processing facility, located southwest of Chicago. The facility, which is the largest natural gas processing plant in the United States, is located within the Chicago Non-Attainment Area for ground-level ozone, which includes the greater Chicago area and the northwest Indiana counties of Lake and Porter.
Under the terms of the settlement, Aux Sable will pay a $2.7 million civil penalty and at least $4.5 million on improvements to pollution controls and projects to reduce volatile organic compounds (VOCs) and nitrogen oxide emissions (NOX).
“Today’s settlement appropriately enforces and resolves significant violations of the Clean Air Act by Aux Sable,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The important upgrades at Aux Sable facility – required by today’s action -- will improve air quality in the Chicago area. The Department of Justice continues to work with EPA to protect clean air for all Americans.”
“The settlement reached today will result in cleaner air for communities in the Greater Chicago area by reducing emissions of pollutants that are ozone precursors,” said Assistant Administrator Susan Bodine for EPA’s Office Of Enforcement and Compliance Assurance. “This work required under the settlement will not only achieve compliance with the Clean Air Act, it also will advance EPA’s goal of reducing the number of nonattainment areas in the country.”
This settlement addresses alleged violations of the Clean Air Act’s New Source Review Rules for excess fugitive emissions of VOCs. The Department of Justice and EPA allege that VOC emissions from equipment leaks at the facility have significantly exceeded the applicable thresholds for such emissions since the facility began operating in 2000, and Aux Sable has therefore never complied with the New Source Review requirements, including the lowest achievable emission rate and emission offset standards.
In this settlement, Aux Sable has agreed to take measures to reduce its emissions of VOCs, including (1) expanding its fugitive emission leak detection and repair program to cover thousands of fittings at its facility; (2) complying with a more stringent leak threshold for making repairs to valves throughout the facility; (3) installing state-of-the-art “low-emissions” technology to replace or repack older leaking valves; (4) achieving 99 percent control efficiency of VOC emissions at the facility’s off-gas incinerators; (5) complying with flare operation monitoring requirements; and (6) installing ultra-low oxides of nitrogen (NOx) burner technology at the facility’s two process heaters. EPA estimates that Aux Sable will spend at least $1.5 million in capital costs and at least $250,000 per year in incremental operational and maintenance costs to complete these improvements.
Additionally, Aux Sable has addressed its noncompliance with the Illinois volatile organic material emission trading program by purchasing from the Illinois EPA the necessary VOC emission allotments and required emission excursion compensation to cover VOC emission-allotment deficiencies from 2001 to 2015, at a cost of more than $156,000. Aux Sable also submitted to Illinois corrections to past annual emission reports.
To mitigate the environmental harm caused by its Clean Air Act violations, Aux Sable has agreed to implement mitigation projects to reduce VOC and NOX emissions at locomotive switchyards located in the Chicago Area, which will include repowering switcher locomotives and installing switcher locomotive idle-reduction technology. Aux Sable will spend $3 million to implement these projects.
VOCs include a variety of chemicals that may produce adverse health effects such as eye, nose, and throat irritation, headaches, nausea, and damage to the liver, kidney, and the central nervous system. VOCs also contribute to the formation of ground level ozone. Breathing ozone can trigger a variety of health problems, particularly for children, the elderly, and anyone with lung diseases such as asthma. Ground level ozone can also have harmful effects on sensitive vegetation and ecosystems. Besides ground level ozone, NOx emissions also contribute to acid rain, particulate matter, water quality deterioration, and visual impairment.
The consent decree has been lodged with the U.S. District Court for the Northern District of Illinois and is subject to public comment for a period of at least 30 days. Notice of the lodging of the consent decree will appear in the Federal Register, allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
For more information on the settlement, please visit: https://www.epa.gov/enforcement/aux-sable-liquid-products-clean-air-act-settlement.
Attorney General Sessions Delivered the Following Statement About Today’s Tragedy in PittsburghRead the Press Release
Attorney General Sessions today issued the following statement on the horrific tragedy in Pittsburgh:
“Hatred and violence on the basis of religion can have no place in our society,” Attorney General Jeff Sessions said. “Every American has the right to attend their house of worship in safety. Today 11 innocent people were suddenly and viciously murdered during religious services and several law enforcement officers were shot. These alleged crimes are reprehensible and utterly repugnant to the values of this nation. Accordingly, the Department of Justice will file hate crimes and other criminal charges against the defendant, including charges that could lead to the death penalty.
“It has been an important week for us to show gratitude for the hard work of our law officers around the country. And today was no exception. I want to thank the FBI, ATF, Pittsburgh police, and especially the heroic officers who were so quick to respond to the shooting, including the multiple officers who were shot. These officers ran to danger to save others, which reflects the highest traditions of policing in this country. There can be no doubt that they saved lives today.
“The Department of Justice will continue to support our state and local partners and we will continue to bring the full force of the law against anyone who would violate the civil rights of the American people.”Three Colombian Nationals Plead Guilty to Participating in Human Smuggling Event that Resulted in the Rape and Murder of Cuban NationalsRead the Press Release
Three Colombian nationals have pleaded guilty to a four-count federal indictment in the Southern District of Florida stemming from their roles 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.
Carlos Emilio Ibarguen Palacios, 27, pleaded guilty today before the Honorable Darrin P. Gayles of the Southern District of Florida to one count of conspiracy to encourage and induce aliens to come to the United 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. Fredis Valencia Palacios, 30, pleaded guilty on Sept. 25, 2018 and Jhoan Stiven Carreazo Asprilla, 23, pleaded guilty on Oct. 24, 2018 before the Honorable Jose E. Martinez of the Southern District of Florida to the same charges.
The three defendants, all Colombian nationals, were previously extradited to the United States in 2017 and 2018 to face these charges.
“These defendants’ depraved acts—which included sexually assaulting and murdering one victim, cutting the throat of a second, and leaving a third for dead in the ocean—underscore the dangers inherent in alien smuggling,” said Assistant Attorney General Benczkowski. “This prosecution of three smugglers from Colombia reflects our resolve to bring to justice those who exploit our immigration laws and prey upon aliens seeking to illegally enter the United States.”
“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.”
“Today’s guilty plea by Ibarguen Palacios brings to justice another defendant in one of the most horrific cases investigated by HSI Miami,” said HSI Special Agent in Charge Selby. “This is exactly what we are constantly warning the public of when it comes to the dangers of human smuggling. Although these pleas will not return the victims to their loved ones, it does bring justice for their friends and family. HSI will continue to aggressively investigate, pursue and shut down these organizations that are involved in this heinous criminal act.”
According to the court record, including agreed upon factual proffers, since 2014, Valencia Palacios, Carreazo Asprilla, and Ibarguen Palacios, and their co-defendant 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 Ibarguen Palacios, and Carreazo Asprilla, to begin their journey to Panama. During the boat trip, Ibarguen Palacios and Carreazo Asprilla pulled a knife and a gun, respectively, on the victims. Ibarguen Palacios 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 Ibarguen Palacios and Carreazo Asprilla sexually assault the female victim before cutting her throat and murdering her. The surviving victim also heard Ibarguen Palacios and Carreazo Asprilla cut the other male victim’s throat, killing him. While that was happening, the survivor managed to free himself and escape by swimming away. Ibarguen Palacios and Carreazo Asprilla 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.
Sentencing is scheduled for Valencia Palacios on Nov. 28, and for Carreazo Asprilla and Ibarguen Palacios on Jan, 4, 2019, all 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.
This case is being prosecuted by 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.
Department of Veterans Affairs Official Pleads Guilty to Bribery, Fraud, and Obstruction in $2 Million Scheme Involving Program for Disabled Military VeteransRead the Press Release
A former U.S. Department of Veterans Affairs (VA) official pleaded guilty to demanding and receiving bribes from three for-profit schools in exchange for enrolling disabled military veterans in those schools and facilitating over $2 million in payments from the VA using the veterans’ federal benefits.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General (OIG), Mid-Atlantic Field Office made the announcement.
James King, 63, of Baltimore, Maryland, pleaded guilty to an Information alleging one count of honest services and money/property wire fraud, one count of bribery, and one count of falsifying records to obstruct an administrative investigation. The plea was entered before U.S. District Judge John D. Bates of the District of Columbia, who set sentencing for Jan. 15, 2019. King is the fourth individual to plead guilty as part of this investigation. In April, Albert Poawui and Sombo Kanneh pleaded guilty to bribing and conspiring to bribe King, respectively. In July, Michelle Stevens pleaded guilty to bribing King.
“For years, James King and his criminal associates defrauded an important VA program that provides education services to military veterans who served our country,” said Assistant Attorney General Benczkowski. “The Justice Department is committed to prosecuting those who seek to illegally enrich themselves at the expense of programs intended to help our brave servicemembers.”
“James King took advantage of his position with the VA by participating in a scam that took money from programs meant to help our disabled military veterans find jobs and enhance their education,” said U.S. Attorney Liu. “This investigation shows that we will do everything we can to ensure that taxpayer money intended for our veterans is put to its proper use, not siphoned off by the people and organizations who are entrusted with helping them.”
“King tried to use his position to enrich himself at the expense of veterans who have honorably served our country,” said FBI Special Agent in Charge DeSarno. “This guilty plea makes it perfectly clear that such activity by anyone affiliated with the U.S. government will not be tolerated. The FBI will work closely with our partners to continue to aggressively investigate allegations of corruption.”
“King’s plea is a win for VA and our veterans,” said Kim Lampkins, Special Agent in Charge of the VA-OIG Mid-Atlantic Field Office. “It sends a clear message that VA OIG is dedicated to prosecuting those that take advantage of VA programs that are intended to help our veterans and their families.”
According to King’s admissions made in connection with his plea, the Vocational Rehabilitation and Employment (VR&E) provides disabled U.S. military veterans with education and employment-related services. VR&E program counselors advise veterans under their supervision which schools to attend and facilitate payments to those schools for veterans’ tuition and necessary supplies.
From 2015 through 2017, King, using his position as a VR&E program counselor, demanded and received cash bribes from the owners of Atius Technology Institute (Atius), Eelon Training Academy (Eelon), and School A, a school purporting to specialize in physical security classes. King facilitated over $2 million in payments to Atius, over $83,000 to Eelon, and over $340,000 to School A, all in furtherance of King’s separate agreements with the respective school owners to commit bribery and defraud the VA. King agreed with Poawui and Stevens that they would each pay him, in cash, seven percent of the money they received from the VA in exchange for King steering veterans to their schools and facilitating VA payments. King similarly accepted cash payments from the owner of School A, who is identified as Person A in the Information, in exchange for the same official acts.
In order to maximize the profits from their fraud, all three school owners sent King and other VA officials false information about the education being provided to veterans, and King facilitated payments to all three schools knowing this information was false. King also admitted to repeatedly lying to veterans under his supervision in order to convince them to attend Atius, Eelon, or School A. For example, King falsely instructed one veteran that, unless he attended School A, his VR&E program benefits would “lapse.” King insisted that this veteran enroll in School A despite the veteran’s protests that he could not engage in physical security work due to a physical disability, and despite the fact that the veteran had enrolled in the VR&E program to pursue his dream of becoming a baker.
In early 2017, the VA initiated a fact-finding inquiry into Atius based on complaints by students as to the quality of education at the school. In August 2017, after King became aware of the inquiry, he created a falsified site visit report and instructed Poawui to send it to another VA official, all in an effort to obstruct the VA’s inquiry into Atius. In January 2018, after Poawui had begun to cooperate with the government in its investigation, King attempted to convince Poawui to lie to the grand jury about the purpose of the bribe payments.
King’s plea is the result of an ongoing investigation by the FBI’s Washington Field Office and the VA Office of Inspector General. Trial Attorney Simon J. Cataldo of the Criminal Division’s Public Integrity Section, former Assistant U.S. Attorney and current Fraud Section Trial Attorney Sonali D. Patel, and Assistant U.S. Attorney David Misler of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case. Former Assistant U.S. Attorney Adrienne Dedjinou and Paralegal Josh Fein of the U.S. Attorney’s Office for the District of Columbia also assisted with the investigation.
Ohio Man Arrested and Charged with Attempting to Travel to Join ISISRead the Press Release
An Ohio man has been arrested and charged by criminal complaint with attempting to provide material support to ISIS-affiliated foreign terrorist organizations. Naser Almadaoji, 19, an Iraqi-born naturalized U.S. citizen, was arrested yesterday at John Glenn International Airport in Columbus, Ohio. It is alleged Almadaoji intended to travel through Kazakhstan on his way to Afghanistan, where he intended to join with, and fight for, ISIS.
Assistant Attorney General for National Security John C. Demers, United States Attorney Benjamin C. Glassman for the Southern District of Ohio and Assistant Director Michael Garrity of the FBI’s Counterterrorism Division made the announcement.
“Naser Almadaoji allegedly attempted to seek terrorist training in weapons and tactics and discussed a willingness to conduct terrorist ‘projects’ in the United States on behalf of foreign terrorist groups,” said Assistant Attorney Demers. “Protecting America from terrorist activity, including conduct like this, remains the highest priority of the Department of Justice.”
“This is the third individual arrested by the FBI on terrorism charges in just over a week. As demonstrated by these arrests -- two in Ohio and one in Illinois -- the threat posed by terrorism remains extremely serious,” said Assistant Director McGarrity. “The FBI is working with our law enforcement partners day and night through our Joint Terrorism Task Forces across the nation to identify terrorists and those who support them. The American public also has an important role to play, and we urge anyone who sees something suspicious to contact law enforcement. Your tips are vitally important to protecting our country.”
“According to the charging document, Almadaoji wanted to make his way to Afghanistan to train with an ISIS organization,” U.S. Attorney Glassman said. “He allegedly pledged allegiance to the leader of ISIS in a video in which he wore a head scarf, and had plans to cause conflict in America between the United States Government and anti-government militias. These are serious allegations, and thwarting terrorist threats remains a top priority for the United States Attorney’s Office.”
According to an affidavit filed in support of the criminal complaint, Almadaoji purchased a plane ticket for travel on October 24. It is alleged that Almadaoji intended to travel to Astana, Kazakhstan, where he planned to be smuggled into Afghanistan so that he could receive military training from ISIS Wilayat Khorasan and then fight for the Islamic State (or one of its affiliates). Almadaoji explained to an individual whom he believed to be in contact with ISIS that he wanted “weapons experts training, planning, executing, hit and run, capturing high value targets, ways to break into homes and avoid security guards. That type of training.”
It is alleged that, between February 16 and 24, 2018, Almadaoji traveled to Egypt and Jordan. Following that travel, in August 2018, Almadaoji allegedly communicated online with an individual he believed was a contact with ISIS organizations. He represented that he tried to join a terrorist organization during his travels to Jordan and Egypt stating, “I don’t wanna say here why I was in Egypt but him [an Egyptian associated] and I planned something and it didn’t work at [sic] well.”
In the same month, it is alleged that Almadaoji told a second individual online – whom he also believed to be associated with ISIS – that he was “always willing” to assist with “projects” in the United States.
According to the affidavit, Almadaoji pledged allegiance to ISIS and discussed with the second contact that he planned to cause the collapse of the United States by starting a conflict between the United States Government and anti-government militias.” Almadaoji allegedly recorded and sent a video of himself wearing a headscarf and pledging allegiance to the leader of the Islamic State.
It is further alleged that Almadaoji translated ISIS propaganda from Arabic to English, and told his contact, “Don’t thank me . . . it’s my duty.”
Attempting to provide material support and resources to a foreign terrorist organization is a federal crime punishable by up to 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge.
Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the FBI.
The case is being prosecuted by Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section and Assistant United States Attorney Dominick S. Gerace. A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Justice Department’s Criminal Division Creates Appalachian Regional Prescription Opioid Strike Force to Focus on Illegal Opioid PrescriptionsRead the Press Release
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division today announced the formation of the Appalachian Regional Prescription Opioid Strike Force (ARPO Strike Force), a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for nine federal districts in five states, as well as law enforcement partners at the FBI, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and U.S. Drug Enforcement Administration (DEA). The mission of the ARPO Strike Force is to identify and investigate health care fraud schemes in the Appalachian region and surrounding areas, and to effectively and efficiently prosecute medical professionals and others involved in the illegal prescription and distribution of opioids.
Assistant Attorney General Benczkowski was joined in the announcement by U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky; U.S. Attorney Russell M. Coleman for the Western District of Kentucky; U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio; U.S. Attorney William J. Powell for the Northern District of West Virginia; U.S. Attorney Michael B. Stuart for the Southern District of West Virginia; U.S. Attorney J. Douglas Overbey for the Eastern District of Tennessee; U.S. Attorney Donald Q. Cochran for the Middle District of Tennessee; U.S. Attorney D. Michael Dunavant for the Western District of Tennessee; U.S. Attorney Jay E. Town for the Northern District of Alabama; Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division; Deputy Inspector General for Investigations Gary L. Cantrell of the Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Administrator John J. Martin of the DEA Diversion Control Division.
“While the opioid epidemic continues to inflict untold pain and suffering on people across the country, the devastation in the Appalachian region and adjacent areas has been particularly staggering,” said Assistant Attorney General Benczkowski. “It is all the more reprehensible when unscrupulous physicians and pharmacies contribute to the epidemic by illegally supplying dangerous prescription painkillers. Working with our partners in U.S. Attorney’s Offices and law enforcement, the Appalachian Regional Prescription Opioid Strike Force will combat illegal prescription opioids and health care fraud by holding accountable corrupt medical professionals who seek to profit off the crisis of opioid addiction.”
“The creation of the Appalachian Regional Prescription Opioid Strike Force will bring together critical resources from the FBI and our partners to fight health care fraud in this region and the growing opioid epidemic that faces the United States,” said FBI Assistant Director Johnson. “Healthcare fraud touches every corner of the United States, and through this strike force, the FBI will continue our tireless work to combat illegal opioid prescriptions and bring to justice those medical professionals who put their greed over the health and wellbeing of their patients.”
“The opioid epidemic has had a devastating impact on Americans across the country, including the people of the Appalachian region,” said HHS-OIG Deputy Inspector General for Investigations Cantrell. “The Strike Force model is a proven mechanism to target illicit conduct and hold accountable criminals involved in illegal opioid prescription and distribution schemes. We will continue to work closely with our federal, state, and local law enforcement partners to curb this damaging epidemic.”
“Our nation’s opioid crisis requires us to work with unprecedented urgency in attacking drug diversion at every level,” said DEA Assistant Administrator Martin. “These joint strike force efforts will save lives, while allowing us to better target and bring to justice those who facilitate addiction and profit at the expense of the weakest and most afflicted.”
Prior to this announcement, the HCF Unit operated Medicare Fraud Strike Force’s in 12 locations across the United States including Miami, Florida; Los Angeles, California; Detroit, Michigan; Houston, Texas; Brooklyn, New York; Baton Rouge and New Orleans, Louisiana; Tampa/Orlando, Florida; Chicago, Illinois; and Dallas, Texas, along with a Corporate Strike Force located in Washington, D.C., and the Newark/Philadelphia Regional Medicare Fraud Strike Force. The Strike Forces represent a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI, HHS-OIG and the DEA.
The ARPO Strike Force will be made up of prosecutors and data analysts with the HCF Unit, prosecutors with the nine U.S. Attorney’s Offices in the region, and special agents with the FBI, HHS-OIG and DEA. The ARPO Strike Force will operate out of two hubs based in the Cincinnati/Northern Kentucky, and Nashville, Tennessee, areas, supporting the nine districts that make up the ARPO Strike Force region. In addition, the APRO Strike Force will work closely with other various federal law enforcement agencies, including the U.S. Postal Inspection Service and IRS Criminal Investigation, and State Medicaid Fraud Control Units.
The ARPO Strike Force will target criminal conduct associated with the improper prescription and distribution of prescription opioids and other dangerous narcotics throughout the Appalachian region and surrounding areas – focusing on criminal conduct by physicians, pharmacists, and other medical professionals. The ARPO Strike Force will also investigate and prosecute violations of health care fraud whenever such fraud is detected throughout the region.
In June, Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III noted the success of the Strike Force model while announcing the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. More information can be obtained at https://www.justice.gov/opa/documents-and-resources-june-28-2018.
In August, Assistant Attorney General Benczkowski announced the Newark/Philadelphia Medicare Fraud Strike Force, which focuses on health care fraud and illegal opioid prescriptions in the Newark/Philadelphia region.
The Strike Force operations are 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 prosecutors in the 12 Medicare Fraud Strike Force locations have charged over 4,000 defendants who collectively have falsely billed the Medicare program for over $14 billion. Since January 2017, the HCF Unit has charged over 85 defendants, including 33 doctors with the illegal prescription of opioids (nearly 30 million pills).
Justice Department Announces $35 Million to Battle the Distribution of Methamphetamine and Another $35 Million to Assist Children Impacted by the Opioid CrisisRead the Press Release
Attorney General Jeff Sessions today announced $35 million in funding to support law enforcement agencies in combating the illegal manufacturing and distribution of methamphetamine, heroin, and prescription opioids, and another $35 million to establish new programs to provide services to children victims of the opioid crisis.
The announcement was made at the Department’s National Opioid Summit, which coincides with Red Ribbon Week, a yearly October event encouraging students, parents, schools, and communities to promote drug-free lifestyles. Additionally, the upcoming Drug Enforcement Administration’s (DEA) National Prescription Drug Take Back Day on October 27 provides an opportunity for Americans to prevent overdose deaths and drug addictions before they start. Last year, the Department expanded on DEA's Drug Takeback Days and collected more than 2.7 million pounds of expired or unused prescription drugs since April 2017. The Department of Justice also recently announced a total of almost $320 million in unprecedented funding to combat the opioid crisis in America.
"Ending the opioid crisis is a top priority for this administration, and under the leadership of President Trump, the Department of Justice has taken historic action," Attorney General Sessions said. "We have already seen a nearly 20 percent decline in opioid prescription rates nationwide in 2017 and 2018, and we are cutting opioid production by an average of 10 percent for next year. Preliminary data also show that after years of large and sustained increases, overdose deaths may have finally started to decrease. Today, we are announcing millions in grants intended to help the most vulnerable victims of the opioid crisis: children. The Department is investing almost $35 million to assist youth victims of this crisis through enhancing community programs, supporting partnerships with victim service providers, and establishing mentoring programs. We are also announcing another $35 million for state law enforcement in states with high levels of heroin and methamphetamine abuse. These measures take us one step closer to bringing this crisis to an end.”
In 2017, more than 72,000 Americans lost their lives to drug overdoses, an increase from the 64,000 overdose deaths in 2016, according to the Centers for Disease Control and Prevention. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues.
In FY 2018, the Office for Victims of Crime (OVC) made awards to 41 sites and a technical assistance provider totaling $29.8 million. This is in addition to about $4.8 million in transferred funds to the Bureau of Justice Assistance (BJA) to support partnership between victim service providers and first responders who encounter an overdose where children are present. The OVC program will support partnerships between victim service providers and first responders who encounter an overdose where children are present, through direct services, training and technical assistance, and efforts to build direct victim assistance services through community-based systems. The funding will provide funding for school-based programs, foster care and child welfare programs, counseling and assistance programs, child advocacy programs, court-appointed special advocates, mentoring and tutoring programs, civil legal services, and other programs.
The Community Oriented Policing Services (COPS) Office is awarding more than $27.8 million in grant funding to 17 state law enforcement agency task forces through the Anti-Heroin Task Force Program (AHTF). AHTF provides two years of funding directly to law enforcement agencies in states with high per capita levels of primary treatment admissions for heroin and other opioids. This funding will support the location or investigation of illicit activities related to the distribution of heroin or the unlawful distribution of prescription opioids.
Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office will also award $7.2 million to nine state law enforcement agencies. These state agencies have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures. State agencies will be awarded two years of funding through CAMP to support the investigation of illicit activities related to the manufacture and distribution of methamphetamine.
The complete list of COPS Anti-Methamphetamine Program award recipients, including funding amounts, can be found here: /media/973761/dl?inline
The complete list of Anti-Heroin Task Force Program award recipients, including funding amounts, can be found here: /media/973756/dl?inline
The complete list of OVC awards can be found here: https://ojp.gov/newsroom/pressreleases/2018/ojp-news-10252018c.pdf
Deputy Attorney General Rod Rosenstein Honors National Domestic Violence Awareness MonthRead the Press Release
In recognition of National Domestic Violence Awareness Month, Deputy Attorney General Rod Rosenstein met with Acting Director of the Office on Violence Against Women (OVW) Katharine Sullivan and other senior Justice officials today to discuss the Violence Against Women Act’s (VAWA) essential focus on criminal justice responses to domestic violence. Deputy Attorney General Rosenstein also announced new OVW funding for the department’s Tribal Special Assistant U.S. Attorney (SAUSA) program.
“There is no place in our society for domestic violence, and holding perpetrators accountable and providing services to victims is a critical part of the Department’s response,” said Deputy Attorney General Rosenstein. “During this National Domestic Violence Awareness Month, I encourage law enforcement, prosecutors, judges, and other criminal justice professionals to speak out about domestic violence and redouble efforts to bring perpetrators to justice. I am especially pleased to announce new funding to support four new Tribal Special Assistant U.S. Attorneys, whose collaboration across the tribal and federal jurisdictional landscape is a model for effective prosecution of violence against women.”
OVW’s Tribal Special Assistant United States Attorneys (Tribal SAUSAs) Program is another Department initiative supporting innovative prosecutorial collaborations. These prosecutors bring cases in both tribal and federal courts, and help ensure that tribal and federal authorities have a seamless response in prosecuting cases under their jurisdiction. In OVW’s pilot project, Tribal SAUSAs reported a wide range of successes, including prosecution of cases that otherwise may not have been brought.
Today, OVW is announcing new Tribal SAUSA Program awards of $437,500 each to the following four tribes:
- Salt River Pima-Maricopa Indian Community (Arizona);
- Confederated Tribes of the Umatilla Indian Reservation (Oregon);
- Rosebud Sioux Tribe (South Dakota); and
- Confederated Tribes of the Colville Reservation (Washington).
Commemorated in the United States since 1987, National Domestic Violence Awareness Month educates the public, commemorates and honors victims and survivors, and connects service providers across the country. President Trump has continued the tradition of issuing a presidential proclamation to recognize October as National Domestic Violence Awareness Month.
Strengthening criminal justice is the core component of VAWA, and Acting Director Sullivan pointed to the Improving the Criminal Justice Response to Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program (ICJR) as the “backbone of VAWA.” ICJR helps communities investigate and prosecute these crimes and keep violent criminals off the street. Since 1997, OVW has made 1,655 ICJR grant awards totaling over $847,000,000. In fiscal year 2018, OVW made 54 ICJR awards totaling $32,610,116.
This funding has supported justice responses including dedicated police and prosecution units, specialized courts, and offender monitoring in 538 communities. For example, Fairfax County in Virginia uses ICJR funding to support a specialized prosecutor for domestic violence and stalking cases and to monitor the enforcement of civil protective orders.
ICJR also funds unique collaborative approaches, such as Family Justice Centers – “one stop shops” housing police, prosecution, and victim services in one place – and multidisciplinary teams that decrease domestic violence homicides. Since 2012 OVW has awarded over $24 million in ICJR funding to reduce domestic violence homicide, including pilot sites, nationwide training, and research. This includes six awards totaling $3,299,977 for fiscal year 2018.
Many victims also face substance abuse issues, and may struggle to access the justice system and get the protection they need. OVW is today announcing an award of $450,000 to the Alliance for HOPE International to train Family Justice Centers to address this complex challenge. The Alliance for HOPE International will partner with the National Center on Domestic Violence, Trauma, and Mental Health.
VAWA was first authorized in 1994 and focused on strengthening the criminal justice response to domestic violence. VAWA was reauthorized in 2000, 2005, and 2013, and each reauthorization included expansions such as addressing elder abuse, combatting stalking, and serving victims of sex trafficking in Indian Country. More information about VAWA is available at www.justice.gov/ovw/legislation.
Grapevine, Texas, Man Sentenced for Hate CrimeRead the Press Release
A 64-year-old Grapevine, Texas, man was sentenced today to 12 months in federal prison for a hate crime, announced Acting Assistant Attorney General John Gore for the Civil Rights Division and U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
In July, Glenn Eugene Halfin pleaded guilty to interfering with housing rights after he repeatedly threatened and intimidated an African American family living in the apartment above his own because of their race.
In court documents, Mr. Halfin admits that in December 2017, he purchased a baby doll at Walmart, fashioned a rope into a noose, and slipped the noose around the baby doll’s neck. He then hung the noose from the railing directly in front of the staircase the victims used to access their apartment.
The defendant “recognized that this display would be particularly intimidating for the African-American victims who had a young daughter,” documents say.
“The Justice Department will not tolerate unlawful acts of racial intimidation,” said Acting Assistant Attorney General John Gore. “We will continue to prosecute hate crime offenders like Halfin to ensure that all families can feel safe in their own homes, regardless of their race, religion, or national origin.”
“No family should be afraid for children in their own home,” said U.S. Attorney Nealy Cox. “The Northern District of Texas will not tolerate crimes born of bigotry. Prosecuting those that persecute others based on race is a priority for my office.”
The FBI and the Grapevine Police Department, in conjunction with the Tarrant County District Attorney’s Office, conducted the investigation. Trial Attorney Rebekah Bailey of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Nicole Dana prosecuted the case.
Four Additional Latin Dragon Members Charged with Racketeering ConspiracyRead the Press Release
Four additional members of Chicago area criminal street gang, the Latin Dragons Nation, have been charged with racketeering conspiracy and other related offenses in a second superseding indictment unsealed today, 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 announced.
According to the second superseding indictment, the Latin Dragons Nation is a criminal street gang that originated in Chicago and spread to other areas, including the Northern District of Indiana. Members and associates of the Latin Dragons Nation allegedly engage in acts of violence, including murder, attempted murder, witness tampering, and assault, to protect the gang’s territory and drug operations. Latin Dragons Nation gang members are required by gang rules to take immediate violent action against anyone who threatens them, and gain respect and status within the gang by doing so.
The four additional defendants charged in the nine-count indictment are Gustavo Colunga aka “Barkley,” 25, of Hammond, Indiana; Joshua Harris-White aka “BJ,” 24, of Chicago, Illinois; Mario Colunga, 30, of Whiting, Indiana; and Luis Colunga, aka “Panson,” 28, of Chicago, Illinois.
Among the various alleged offenses that the second superseding indictment added are:
- On or about July 27, 2015, allegedly Gustavo Colunga and Joshua Harris-White approached Victim #6, a juvenile, whom Gustavo Colunga and Harris-White believed was a rival gang member. Harris-White held Victim #6 down, while Gustavo Colunga stabbed Victim #6 in the throat. Both Gustavo Colunga and Harris-White fled in a vehicle driven by a third Latin Dragon Nation member.
- On or about Nov. 22, 2017, allegedly while Mario Colunga was driving a vehicle occupied by Ralph Mendez Jr., another Latin Dragon Nation member and three female associates, Mendez Jr. did a drive-by shooting in a rival gang neighborhood in Chicago, Illinois.
- On different occasions, allegedly Luis Colunga delivered an H&R .38 caliber revolver, and Gustavo Colunga delivered a Smith & Wesson .45 caliber semi-automatic pistol and Inter Ordnance .380 caliber semi-automatic pistol and a quantity of cocaine to an undercover ATF special agent.
- On or about Aug. 13, 2018, Gustavo Colunga and Joshua Harris-White sold a Ruger .44 magnum revolver and a quantity of marijuana to an ATF undercover special agent.
The previously indicted defendants, charged in this case are Manuel Diaz aka “Smiley,” 27, of Hammond, Indiana; Eduardo Diaz-Corral aka “Lalo,” 20, of Calumet City, Illinois; Ralph Mendez Jr. aka “Lil Devious,” 22, of Chicago, Illinois; and Joseph Roggenkamp aka “Dro,” 21, of East Chicago, Indiana. Diaz-Corral and Diaz allegedly participated, respectively, in the murders of Paul Cruz on Nov. 20, 2016, in Chicago, and Charles Berrios on Sept. 30, 2017, in Hammond, Indiana. These murders and other acts of violence are charged in this second superseding indictment.
The second superseding indictment is part of ongoing efforts to curb the activities of violent street gangs in the Northern District of Indiana.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines. The maximum penalty for murder in aid of racketeering is death or in the alternative a mandatory life sentence.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the Hammond Police Department; the East Chicago Police Department; the Merrillville Police Department; the Hobart Police Department and the Lake County Sheriff’s Department along with the Chicago and Calumet City, Illinois Police. The case is being prosecuted by Trial Attorney Robert S. Tully of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Joseph A. Cooley and David J. Nozick of the Northern District of Indiana.