District Not Recorded

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The DOJ-OIG, USPS-OIG and DOL-OIG investigated the case.  Assistant Chief Adrienne Frazior of the Criminal Division’s Fraud Section is prosecuting the case.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Office of Justice Programs, led by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at: www.ojp.gov.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The information contained in the report shows the following:

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

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

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

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

A Venezuelan billionaire who owns Globovision news network was charged in an indictment unsealed yesterday for his role in a billion-dollar currency exchange and money laundering scheme.  A former Venezuelan national treasurer and a former owner of Banco Peravia bank in the Dominican Republic each pleaded guilty in proceedings unsealed today for their roles in the scheme.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI Houston Field Office, Special Agent in Charge George L. Piro of the FBI Miami Field Office, Special Agent in Charge Peter C. Fitzhugh and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s (FDIC) Washington, D.C. Office made the announcement.

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

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

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

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

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

The Fraud Section is responsible for investigating and prosecuting all FCPA matters.  Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

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

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

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

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

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

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

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

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

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

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

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

Acting Attorney General Matthew Whitaker today released the following statement:

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

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

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

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

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

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

A Houston, Texas man was convicted by a federal jury yesterday in the U.S. District Court for the Southern District of Texas of two conspiracies and tax crimes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

In total, Kenneth J. Coleman, 51, was convicted of nine counts, including conspiracy to commit money laundering, conspiracy to structure currency transactions, corporate tax evasion, filing false tax returns with the IRS and failing to file a tax return with the Internal Revenue Service (IRS). U.S. District Court Senior Judge David Hittner set Coleman’s sentencing for February 2, 2019. Coleman’s co-conspirator, Marcus Weathersby, formerly of Houston, Texas, pleaded guilty to conspiracy to commit money laundering and was sentenced in June 2018 to 58 months in prison. He testified at trial.

The evidence at trial established that Coleman participated in a scheme to facilitate the fraudulent sale of second-hand prescription medications to Utah-based Green Valley Medical Distributors, LLC (Green Valley). Coleman, owned Acacia Pharma Distributors, Inc. (Acacia) and Four Corner Suppliers, Inc. (Four Corner), which purchased bottles of prescription medications from illegitimate sources and then sold the medications to Green Valley, which then sold the medications to pharmacies as new. 

Federal regulation requires wholesale distributors of prescription medications to provide to a buyer a pedigree – a written statement identifying each prior sale, purchase or trade of the drugs being sold that includes the business name and information of all parties to the prior transactions, starting with the manufacturer. Coleman and others acting at his direction created false pedigrees and provided the false documents to Green Valley. Evidence at trial showed that Green Valley would withhold payment to Coleman until it received these false pedigrees.

Coleman and Weathersby deposited proceeds from the fraudulent sale of these second-hand prescription drugs into Acacia’s and Four Corner’s business bank accounts and used the funds to pay the suppliers of the illicit pharmaceuticals. At trial, the government proved that Weathersby and others acting at Coleman’s direction laundered more than $36 million of illicit funds, including over $2 million in more than 230 cash withdrawals made in amounts less than $10,000 in order to evade bank-reporting requirements.

The evidence at trial also established that Coleman evaded assessment and payment of Acacia’s and Four Corner’s income tax liabilities, and that he failed to file an individual tax return for tax year 2011, and filed false individual income tax returns for tax years 2012 and 2013 with the IRS.

Coleman now faces a maximum sentence of 20 years in prison for the money laundering conspiracy and a maximum sentence of five years for the conspiracy to structure currency transactions. Coleman also faces a five-year maximum sentence for each count of tax evasion and a maximum sentence of three years in prison for each count of filing a false tax return. Coleman also faces a term of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Richard E. Zuckerman thanked agents of IRS-Criminal Investigation, the Federal Bureau of Investigation, and the Federal Department of Agriculture, who conducted the investigation, and Trial Attorneys Sean Beaty and Terri-Lei O’Malley of the Tax Division, who are prosecuting the case.

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.

Chief Federal District Court Judge Scott W. Skavdahl sentenced SEVERIANO DIAZ-CAZARES, 42, of Las Vegas, Nevada on November 14, 2018 for illegal re-entry of a previously deported alien into the United States and illegal alien in possession of a firearm. Diaz-Cazares was arrested in Riverton, Wyoming. He received twenty-four months of imprisonment, to be followed by twelve months of supervised release, and ordered to pay a $200.00 special assessment. The Fremont County Sheriff’s Office, Wyoming Division of Criminal Investigation, and the US. Department of Homeland Security Investigations investigated this case.

Chief Federal District Court Judge Scott W. Skavdahl sentenced JEREMY OBERMUELLER, 35, of Craig, Colorado on November 14, 2018 for being a felon and unlawful user of a controlled substance in possession of a firearm. Obermueller was arrested in Lander, Wyoming. He received fifty-eight months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $1,900.00 fine, and a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.

Chief Federal District Court Judge Scott W. Skavdahl sentenced SEVERIANO DIAZ-CAZARES, 42, of Las Vegas, Nevada on November 14, 2018 for illegal re-entry of a previously deported alien into the United States and illegal alien in possession of a firearm. Diaz-Cazares was arrested in Riverton, Wyoming. He received twenty-four months of imprisonment, to be followed by twelve months of supervised release, and ordered to pay a $200.00 special assessment. The Fremont County Sheriff’s Office, Wyoming Division of Criminal Investigation, and the US. Department of Homeland Security Investigations investigated this case.

Chief Federal District Court Judge Scott W. Skavdahl sentenced JEREMY OBERMUELLER, 35, of Craig, Colorado on November 14, 2018 for being a felon and unlawful user of a controlled substance in possession of a firearm. Obermueller was arrested in Lander, Wyoming. He received fifty-eight months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $1,900.00 fine, and a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.

Gregory A. Bush, 51, was indicted today by a federal grand jury on hate crime and firearm charges arising out of the racially motivated murder of two African-American patrons at a Kroger grocery store, and the attempted murder of a third, on Oct. 24 in Jeffersontown, Kentucky. The indictment was announced by Acting Attorney General Matthew Whitaker, Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Russell Coleman, and FBI Louisville Special Agent in Charge James Robert Brown, Jr.                                                                                                                   

Today’s indictment charges Bush with hate crimes for shooting and killing two victims because of their race and color; and for shooting at a third man because of his race and color. The indictment also charges Bush for using and discharging a firearm during and in relation to those crimes of violence. The indictment alleges that Bush committed the offenses after substantial planning and premeditation, that he killed more than one person in a single criminal episode, and that he knowingly created a grave risk of death to others on the scene.

The maximum penalty for the charges in the indictment is life imprisonment or the death penalty.  The Justice Department will determine at a later date whether, in this particular case, it will seek the death penalty.  

"The crimes alleged in this indictment are horrific," Acting Attorney General Whitaker said. "We cannot and will not tolerate violence motivated by racism. We will bring the full force of the law against these and any other alleged hate crimes against fellow Americans of any race. And so I want to thank the FBI, Trial Attorney Christopher Perras, and Assistant United States Attorney Amanda Gregory for all of their hard work that has made this indictment possible. Today we take one step closer to justice for the victims and their families and one step closer to helping this community try to heal."

“There is no place for hate-fueled violence in our community or Commonwealth,” stated U.S. Attorney Russell Coleman. “Federal, state, and local law enforcement stand united to ensure that Kentuckians can shop, worship, or attend school without the specter of fear.”

“The tragic events of October 24, 2018, are a grim reminder of why the FBI prioritizes investigations of civil rights violations among the top of its criminal programs,” said FBI Louisville Special Agent in Charge James Robert Brown, Jr. “Today's indictment should be a reminder to those who are motivated by hate and are intent on committing violence; your hateful ideology will not have the last word. The FBI, and the Department of Justice, will be there, and you will be caught and prosecuted to the fullest extent of the law.”

“The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is committed to working with our law enforcement partners to ensure justice for the victims, their families and the Louisville community throughout the investigation and prosecution of this alleged, hate-filled and violent crime,” stated Stuart Lowrey, Special Agent in Charge of the ATF Louisville Division. “Today, and every day, ATF’s ongoing priority is to reduce violent crime and secure the safety of our communities.”

An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.

This case has been investigated by the FBI Louisville Office, Bureau of Alcohol, Tobacco, Firearms and Explosives Louisville Field Division, and is being prosecuted by Trial Attorney Christopher J. Perras of the Civil Rights Division of the Department of Justice, and Assistant United States Attorney Amanda Gregory of the Western District of Kentucky.

A former employee for the Internal Revenue Service (IRS) was sentenced to serve 24 months in prison for aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Byung J. Pak for the Northern District of Georgia.

According to court documents, Stephanie Parker worked for the IRS as a Contact Representative in Atlanta, Georgia.  Between September 2012 and March 2013, taxpayers called into the IRS for assistance, and Parker handled the taxpayers’ inquiries.  During the calls, Parker obtained the taxpayers’ Social Security numbers and addresses.  On at least five occasions, Parker used the taxpayers’ personal information to electronically file fraudulent tax returns in their names without their authorization.  Parker directed the fraudulent tax refunds to bank accounts controlled by her friends.  Parker, in turn, had the money withdrawn from at least one of those accounts, deposited a portion of the money into her own bank account, and used it for personal expenses.

In addition to the term of imprisonment imposed, Parker was also ordered to serve one year of supervised release and to pay $5,964 in restitution to the IRS.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Pak commended special agents of IRS–Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Alexander Effendi and Michael Boteler of the Tax Division, who are prosecuting this case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. 

Gregory A. Bush, de 51 años, fue acusado formalmente hoy por un gran jurado ante cargos relacionados con un delito de odio y con armas de fuego que se basan en el asesinato por motivo de raza de dos clientes afroestadounidenses de un supermercado Kroger y el intento de asesinato de un tercero el 24 de octubre en Jeffersontown, Kentucky. La acusación formal fue anunciada por el Fiscal General en funciones Matthew Whitaker, el Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband, el Fiscal Federal Russell Coleman, y el Agente Especial Encargado del Buró de Investigaciones Federales («FBI», por sus siglas en inglés) en Louisville, James Robert Brown, Jr.

La acusación formal de hoy le acusa a Bush de delitos de odio por disparar y matar a dos víctimas por motivos de su raza y color de piel, y por disparar a un tercer hombre por motivos de su raza y color de piel. Asimismo, la acusación formal le acusa a Bush de utilizar y descargar un arma de fuego durante y en relación con esos delitos de odio. La acusación formal alega que Bush cometió el delito tras planificación y premeditación durante bastante tiempo, que mató a más de una persona en un solo episodio delictivo y que creó, a sabiendas, un grave riesgo de muerte a otras personas presentes en la escena del delito.

La pena máxima para los cargos contenidos en la acusación formal es la cadena perpetua o la pena de muerte. El Departamento de Justicia determinará a una fecha posterior si en este caso en particular pedirá la pena de muerte.

«Los delitos alegados en esta acusación formal son horrorosos», declaró el Fiscal General en funciones Whitaker. «No podemos tolerar ni tampoco toleraremos la violencia motivada por el racismo. Emplearemos todo el peso de la ley contra estos y cualquier otro alegado delito de odio cometido contra estadounidenses de cualquier raza. Quiero dar las gracias al FBI, al Abogado de Litigios Christopher Perras y la Fiscal Federal Auxiliar Amanda Gregory por todo el arduo trabajo que ha hecho posible esta acusación formal. Hoy nos hemos dado un paso más hacia la justicia para las víctimas y sus familias y un paso más hacia ayudar a esta comunidad a intentar curarse».

«No hay lugar para violencia motivada por el odio en nuestra comunidad o en nuestra Mancomunidad [Commonwealth of Kentucky]», afirmó el Fiscal Federal Russell Coleman. «La policía federal, estatal y local están unidas en asegurar que los vecinos de Kentucky puedan ir de compras, rezar o asistir a la escuela sin tener miedo».

«Los eventos trágicos del 24 de octubre del 2018 sirven de recordatorio solemne de las razones por las que el FBI tiene como prioridad la investigación de vulneraciones de derechos civiles entre sus programas contra la delincuencia», comentó el Agente Especial Encargado del FBI en Louisville, Robert Brown Jr. «La acusación formal de hoy debe servir de recordatorio a aquellos cuyos motivos se arraiguen en el odio y que estén decididos a cometer actos de violencia que su ideología odiosa no tendrá la última palabra. El FBI, junto con el Departamento de Justicia, seguirá en ello, y ustedes serán capturados y enjuiciados con todo el peso de la ley».

«La Agencia de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos (ATF, por sus siglas en inglés) se ha comprometido a colaborar con nuestras agencias asociadas del orden público para garantizar que se haga justicia para las víctimas, sus familias y la comunidad de Louisville durante la investigación y el enjuiciamiento de este alegado delito violento tan lleno de odio», declaró Stuart Lowrey, el Agente Especial Encargado de la División de la ATF en Louisville. «Hoy, como siempre, la prioridad actual de la ATF es reducir la delincuencia violenta y garantizar la seguridad de nuestras comunidades».

Una acusación formal es sencillamente una acusación y al acusado se lo considera inocente mientras no se pruebe su culpabilidad.

Este caso ha sido investigado por la Oficina del FBI en Louisville y la División Local en Louisville de la Agencia de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos y está siendo enjuiciado por Christopher J. Perras, Abogado de Litigios de la División de Derechos Civiles, y Amanda Gregory, Fiscal Federal Auxiliar para el Distrito Occidental de Kentucky.

Anexo(s): 

Download Bush Indictment

Three individuals who operated Flexabar Corporation, a paint and coating manufacturer in Lakewood, New Jersey, pleaded guilty yesterday in federal court to the illegal production and distribution of pesticides. Assistant Attorney General Jeffrey Bossert Clark and EPA Office of Enforcement and Compliance Assurance Assistant Administrator Susan Bodine made the announcement.

Andrew Guglielmo, Flexabar’s Chief Executive and Financial Officer; Richard Guglielmo Jr., Flexabar’s President; and Hamdi Latif, the company’s Technical Director, pleaded guilty yesterday in federal district court in Trenton, New Jersey, to felony charges of having conspired to violate federal pesticide laws and to evade EPA’s ban on the use of the marine toxin tributyltin (TBT).

“Tributylin, or TBT, is dangerous to marine life, which is why Congress limited its use in 1988.  Despite this danger, and repeated notices by EPA, the defendants chose to illegally produce and distribute TBT,” said Assistant Attorney General Clark. “Yesterday’s guilty pleas shows that the Department of Justice will not tolerate such unlawful conduct.” 

“The defendants in this case produced and marketed a paint that contained a biocide that can cause significant harm to marine life. When questioned about the intended use of the paint, the defendants repeatedly misled EPA investigators,” said EPA Office of Enforcement and Compliance Assurance Assistant Administrator Susan Bodine. “Yesterday’s guilty pleas demonstrate that companies and their top executives who conspire to skirt federal pesticide control laws and place our natural resources at risk will be prosecuted.”

During the 1970s, TBT was used on boats, docks, crab pots, and other fishing gear in antifouling paint that prevent the growth of barnacles, seaweed, and mollusks. By the 1980s, scientific studies showed TBT to be extremely toxic to marine life, causing shell deformation, reproductive aberrations, endocrine disruption, and bio-accumulation in predator species including marine mammals. In the early 1990s, EPA began to limit the use of TBT to reduce its impact on marine life. In 1991, EPA directed Flexabar to clarify the language on its registered TBT labels to assure that the product was not used as an antifouling treatment on surfaces in contact with water.

In spite of repeated notices from EPA, the defendants evaded restrictions on their company’s TBT pesticides and continued to produce and sell TBT antifouling paints to the fishing industry.  They manufactured and sold TBT for marine uses after such applications were restricted by an act of Congress in 1988, by EPA’s labeling requirements in 1991, by an international treaty in 2001, by EPA’s TBT product cancellation in 2005, and by EPA’s subsequent notices. Even after February 2013, when EPA banned the sale of Flexabar’s TBT pesticides for any application, the defendants continued to surreptitiously purchase TBT, to manufacture more TBT antifouling paint, and to illegally sell it for use as a marine pesticide. 

Each defendant is subject to a maximum of up to five years imprisonment and a fine of up to $250,000, or twice the financial gain they derived from the offense. 

Sentencing for Richard Guglielmo Jr. is scheduled for February 25, 2018; sentencing for Andrew Guglielmo is scheduled for February 26, 2018; and sentencing for Hamdi Latif is scheduled for February 27, 2018.

This case was investigated by Resident Agent in Charge Nicole Bein of the EPA’s Criminal Investigation Division.  It is being prosecuted by Trial Attorneys Jeremy Korzenik and Adam Cullman of the Environmental Crimes Section of the United States Department of Justice. 

A Las Vegas, Nevada, tax return preparer was sentenced today to 37 months in prison for aiding and assisting in the filing of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson for the District of Nevada.

According to documents and information provided to the court, from 2009 through 2015, Ofelia Ronquillo prepared false income tax returns for clients of her business, A.R. Financial LLC and later AJRC Tax Services, in Las Vegas, Nevada. Ronquillo included multiple false items on her clients’ tax returns, including charitable contributions, capital loss deductions, energy tax credits, and unreimbursed employee expenses—such as business meals and transportation expenses. As a result, the returns reported that the clients owed thousands of dollars less in taxes than they would have owed without the false deductions and credits.  As part of the plea agreement, Ronquillo admitted that the total tax loss resulting from her preparation and filing of false returns was more than $2.7 million.

In addition to the term of imprisonment, U.S. District Court Judge Andrew Gordon ordered Ronquillo to serve one year of supervised release and to pay restitution of $16,290.93.

“The Department of Justice will continue to hold tax return preparers, who willfully prepare and file fraudulent returns, accountable and to protect the United States Treasury from false refund claims,” said Principal Deputy Assistant Attorney General Zuckerman.

“Tax return preparers, who purposely prepare false tax returns to get high refunds are stealing directly from American taxpayers,” said Special Agent in Charge Tara Sullivan with IRS-CI. “Return preparer fraud is one of the top priorities for IRS-Criminal Investigation, and we will investigate these cases and prosecute those who steal from the American public.”

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of Internal Revenue Service–Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

Today, the United States Department of Justice and Department of Agriculture hosts the first Rural and Tribal Elder Justice Summit in Des Moines, Iowa.  Acting Attorney General Matthew Whitaker and Secretary Sonny Perdue for the Department of Agriculture announced the summit in a joint statement on June 15, 2018. The Summit will focus on supporting the efforts of elder justice professionals to combat elder abuse and financial exploitation in rural and tribal communities.

“Exploitation of our seniors is a despicable crime,” Acting Attorney General Matthew Whitaker said. “Under this administration, the Department of Justice has taken sweeping action to stop crimes of elder fraud and abuse, and we are working to do more.  Unfortunately, such crimes pose a special challenge in rural communities like the one where I grew up, in which law enforcement agencies can be spread thin and where there often are fewer support services available.  Today’s summit reflects the Department’s commitment to ensuring that our state and local partners have the most current resources and robust support to combat elder fraud and abuse in their communities.  We all have a role to play in this fight and I am grateful for the support of Secretary Perdue and all of our federal, state and local partners who made this summit possible as we advance the goal of elder justice in rural America.”

“We often talk about wanting to leave this country in better shape than we found it for the benefit of future generations, but too often the care of those from older generations is overlooked," said Secretary Perdue. "The abuse and neglect of senior citizens is something that no civilized society should tolerate.  President Trump has prioritized increasing the quality of life in rural America, including in tribal communities, and that encompasses caring for our elderly as well. Elder justice means protecting seniors from all forms of abuse and we cannot achieve true prosperity in every corner of America without it.”

Over the course of two days, elder justice professionals serving and working with older adults in rural and tribal communities around the country will come together to: (1) gain a better understanding of the challenges rural and tribal communities face in responding to elder abuse; (2) identify promising practices, resources, and tools available to rural and tribal communities; and (3) foster greater collaboration at the tribal, local, state, and federal levels in order to serve elders from rural and tribal communities.

Following opening remarks, the first day of the Summit will feature a plenary session that will explore the unique challenges and opportunities associated with addressing elder abuse in rural and tribal communities.  Subsequent panels will highlight federal efforts to support rural and tribal communities, as well as innovative practices and initiatives currently being used in rural communities and tribal communities to support elder abuse victims. The second day of the Summit, which falls on National Rural Health Day, will feature two panel sessions. The first will focus on harnessing the power of technology to respond to elder abuse in rural and tribal communities, and the second will highlight tools and resources available to combat and report elder financial exploitation.  All of the elder justice resources and tools highlighted at the Summit will be available at the Department’s Elder Justice Website. 

The Summit was spearheaded by the Department of Justice’s Elder Justice Initiative, in close collaboration with members of the Elder Justice Coordinating Council, including the Department of Health and Human Services, the Department of Agriculture, the Bureau of Consumer Financial Protection, the Department of Veterans Affairs, the Federal Trade Commission, and the Federal Communications Commission.  The Department of Justice also worked closely with the ABA Commission on Law and Aging, the National Association of Area Agencies on Aging, and the National Adult Protective Services Association.    

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, The Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past February the Attorney General announced the largest elder fraud enforcement action in American history, charging more than 200 defendants in a nationwide elder fraud sweep.  The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.    

Elder justice refers to a society’s response to elder abuse, which includes physical abuse, caregiver neglect, financial exploitation, psychological abuse, sexual abuse, and abandonment. 

Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.  The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.  Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website (at www.elderjustice.gov). 

The owner of two Detroit-area clinics was sentenced to 160 months in prison today for her role in a scheme involving approximately $8.9 million in fraudulent Medicare claims for home health care and other physician services that were procured through the payment of kickbacks, were not medically necessary, were not actually provided, or were provided by an unlicensed physician.

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 and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.

Jacklyn Price, 34, of Shelby, Michigan, was sentenced by U.S. District Judge Robert Cleland of the Eastern District of Michigan.  Judge Cleland also ordered Price to pay $6,350,332 in restitution, jointly and severally with her co-conspirators, and to forfeit the same amount.  Price pleaded guilty in April 2017 to one count of conspiracy to commit health care fraud and one count of health care fraud. 

Price’s co-defendant, Millicent Traylor, M.D., 47, of Detroit, Michigan, was sentenced to serve 135 months in prison on Sept. 27; her co-defendant Muhammad Qazi, 48, of Oakland Township, Michigan, was sentenced to serve 42 months in prison on Aug. 27; and her other co-defendant, Christina Kimbrough, M.D., 39, of Canton, Michigan, was sentenced to serve 27 months in prison on Sept. 26.  Qazi and Kimbrough each pleaded guilty to one count of conspiracy to commit health care fraud.  Traylor was convicted in May 2018 of one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive health care kickbacks, and five counts of health care fraud following a four-day trial. 

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and U.S. Attorney’s Office for Eastern District of Michigan.  Trial Attorneys Stephen Cincotta and Steve Scott of the Criminal Division’s Fraud Section are prosecuting the case.

The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. 

Chadwick Grubbs, who is currently in state custody on separate cases, pleaded guilty today to federal charges related to threatening letters he wrote on three separate dates in May to the Harry and Rose Samson Family Jewish Community Center (JCC) in Whitefish Bay. Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Matthew D. Krueger for the Eastern District of Wisconsin, and Special Agent-in-Charge Justin Tolomeo of the FBI’s Milwaukee Division made the announcement.

Grubbs, 33, pleaded guilty to two counts of mailing threatening communications and one count of threatening to injure and destroy property by fire and an explosive.  Information presented during the plea hearing established that Grubbs sent three letters to the JCC in which he threatened to use firearms to cause “maximum carnage” and threatened to use explosives to destroy the JCC.  In his letters, Grubbs used numbers and symbols associated with white supremacist ideology.

“Mr. Grubbs’ violent threats against the Whitefish Bay Jewish community attempted to undermine the safety and security of all community members,” said Assistant Attorney General Eric Dreiband. “The Justice Department will continue to prosecute these cases vigorously so that all people, no matter their religious beliefs, can live their lives freely and without fear.”

“The freedom of religion is among our most cherished rights,” said U.S. Attorney Krueger. “No one should be afraid to exercise his or her religious beliefs in this country. The Department of Justice is committed to prosecuting anyone who threatens harm to someone because of their faith.” 

“Protecting civil rights is one of the highest priorities of the FBI,” said SAC Justin Tolomeo. “We will vigorously investigate those who seek to intimidate with threats of violence motivated on bias against race, religion, disability, sexual orientation, ethnicity, gender, or gender identity, and bring them to justice.”

Acting Attorney General Matthew Whitaker released a statement on the FBI’s 2017 Hate Crimes Statistics report, published this morning. The Acting Attorney General’s full statement reflects on the troubling increase in anti-Semitic religious hate crimes in 2017, outlined in the report. Last month, the Justice Department launched 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.  More information on the website and an update on Justice Department hate crimes prosecutions can be found here.

Grubbs faces a maximum statutory penalty of ten years in prison and a $250,000 fine for the explosives threat charge and a penalty of five years in prison and a $250,000 fine for each of the mailed threats charges.

The FBI is leading the investigation. Assistant United States Attorney Gregory Haanstad of the U.S. Attorney’s Office for the Eastern District of Wisconsin and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division are prosecuting this case.

The Department of Justice announced today that it has reached a settlement with six broadcast television companies — Sinclair Broadcast Group Inc.; Raycom Media Inc.; Tribune Media Company; Meredith Corporation; Griffin Communications; and Dreamcatcher Broadcasting LLC — to resolve a Department lawsuit alleging that the companies engaged in unlawful agreements to share non-public competitively sensitive information with their broadcast television competitors.

The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to challenge the unlawful exchange of competitively sensitive information among these six broadcast television companies, their sales representatives, and other broadcast television groups. At the same time, the Department filed proposed settlements that, if approved by the court, would resolve the lawsuit’s alleged competitive harm alleged in the complaint.

“The unlawful exchange of competitively sensitive information allowed these television broadcast companies to disrupt the normal competitive process of spot advertising in markets across the United States,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Advertisers rely on competition among owners of broadcast television stations to obtain reasonable advertising rates, but this unlawful sharing of information lessened that competition and thereby harmed the local businesses and the consumers they serve.” 

According to the complaint, the six broadcast television companies agreed in many metropolitan areas across the United States to exchange revenue pacing information, and certain defendants also engaged in the exchange of other forms of non-public sales information in certain metropolitan areas.  Pacing compares a broadcast station’s revenues booked for a certain time period to the revenues booked in the same point in the previous year.  Pacing indicates how each station is performing versus the rest of the market and provides insight into each station’s remaining spot advertising for the period.

By exchanging pacing information, the broadcasters were better able to anticipate whether their competitors were likely to raise, maintain, or lower spot advertising prices, which in turn helped inform the stations’ own pricing strategies and negotiations with advertisers.  As a result, the information exchanges harmed the competitive price–setting process.

The proposed settlement prohibits the direct or indirect sharing of such competitively sensitive information. The Department has determined that prohibiting this conduct would resolve the antitrust concerns raised as a result of the conduct of these defendants.  The proposed settlement further requires defendants to cooperate in the department’s ongoing investigation, and to adopt rigorous antitrust compliance and reporting measures to prevent similar anticompetitive conduct in the future.  The settlement has a seven year term, and it will continue to apply to stations currently owned by defendants, even if those stations are acquired by another company.

Sinclair Broadcast Group Inc., a Maryland corporation with headquarters in Hunt Valley, Maryland, owns or operates 130 television stations across 87 markets. In 2017, it reported revenue in excess of $2.7 billion.

Tribune Media Company is a Delaware corporation; its headquarters are in Chicago, Illinois. It owns or operates 41 television stations in 31 markets and had over $670 million in revenue in 2017.

Raycom Media Inc., a Delaware corporation, has its principal place of business in Montgomery, Alabama. It owns or operates 55 television stations in 43 markets and had over $670 million in revenue in 2017.

Meredith Corporation, an Iowa corporation, has its principal place of business in Des Moines, Iowa. It owns or operates 17 television stations in 12 markets and had over $1.7 billion in revenue in 2017.

Griffin Communications is an Oklahoma corporation; its principal place of business is in Oklahoma City, Oklahoma. It owns or operates four television stations in two markets and exceeded $60 million in revenue in 2017.

Dreamcatcher Broadcasting, LLC, a Delaware corporation, has its headquarters in Santa Monica, California. It owns or operates three television stations in two markets and had over $50 million in revenue in 2017.

As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register.  Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Owen Kendler, Chief, Media, Entertainment, and Professional Services Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530.  At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.

A retired U.S. Navy captain pleaded guilty to criminal conflict of interest charges and a former U.S. Navy master chief was sentenced to 17 months in prison today on corruption charges.  The defendants are among the latest U.S. Navy officials to plead guilty and be sentenced in the expansive corruption and fraud investigation involving foreign defense contractor Leonard Glenn Francis and his Singapore-based ship husbanding company, Glenn Defense Marine Asia (GDMA).

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Adam L. Braverman of the Southern District of California, Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS) and Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) made the announcement.

Jeffrey Breslau, 52, of Cumming, Georgia, pleaded guilty to one count of criminal conflict of interest before U.S. District Judge Janis Sammartino of the Southern District of California.  Breslau was charged in September 2018.  Retired Master Chief Ricarte Icmat David, 62, of Concepcion, Tarlac, Philippines, was sentenced by Judge Sammartino, who also ordered him to serve a year of supervised release and pay restitution of $30,000.  David was charged in August 2018 and pleaded guilty in September to one count of conspiracy to commit honest services wire fraud.

According to admissions made as part of his guilty plea, from October 2009 until July 2012, Breslau was a captain in the U.S. Navy assigned as director of public affairs for the U.S. Pacific Fleet, headquartered in Pearl Harbor, Hawaii.  As part of his duties, Breslau was involved in devising the U.S. Navy’s public affairs communications strategy, and provided public affairs guidance to Pacific Fleet components and other U.S. Navy commands.  From August 2012 until July 2014, Breslau was assigned to the commanding officer for the Joint Public Affairs Support Element in Norfolk, Virginia, where he was responsible for leading joint crisis communications teams. 

Breslau admitted that from March 2012 until September 2013, while serving in the above roles for the U.S. Navy, he provided Francis with public relations consulting services, including providing advice on how to respond to issues and controversies related to Francis’s ship husbanding business with the U.S. Navy.  These included issues related to port visit costs, allegations of malfeasance such as the unauthorized dumping of waste, disputes with competitors, and issues with Pacific Fleet and contracting personnel.  During the course of his consulting agreement with Francis, Breslau authored, reviewed or edited at least 33 separate documents; authored at least 135 emails providing advice to Francis; provided at least 14 instances of “talking points” in advance of meetings between Francis and high ranking U.S. Navy personnel; and “ghostwrote” numerous emails on Francis’s behalf to be transmitted to U.S. Navy personnel.  During the course of this consulting agreement, Francis paid Breslau approximately $65,000 without Breslau disclosing the agreement to the U.S. Navy, Breslau admitted.    

As part of his guilty plea, David admitted that he was assigned various logistics positions with the U.S. Navy’s Seventh Fleet, including with the Fleet Industrial Supply Center in Yokosuka, Japan from June 2001 to July 2004; on the USS Essex from July 2004 to August 2007; on the USS Kitty Hawk from September 2007 to August 2008; and on the USS George Washington from September 2008 to July 2010.  In these positions, David was responsible for ordering and verifying goods and services for the ships on which he served, including from contractors during port calls.  Throughout this period, David received from Francis various things of value, including five star hotel rooms during every port visit, he admitted.  

David further admitted that he repeatedly facilitated fraud on the United States by allowing Francis and GDMA to inflate the husbanding invoices to bill for services never rendered.  For example, David instructed Francis to inflate invoices for the USS Essex’s anticipated November 2007 port visit to the Philippines.  As David transitioned to a new position aboard the nuclear aircraft carrier USS Kitty Hawk, on or about May 8, 2008, Francis’s company paid approximately 84,637.00 Hong Kong Dollars (HKD) for hotel reservations at the Grand Hyatt Hong Kong for U.S. Navy personnel assigned to the USS Kitty Hawk including 10,396 HKD for David’s four-night stay in a Harbor View Room, David admitted.

Francis pleaded guilty in 2015 to bribery and fraud charges, admitting that he presided over a massive, decade-long conspiracy involving “scores” of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and lavish gifts, including luxury travel, airline upgrades, five-star hotel accommodations, top-shelf alcohol, the services of prostitutes, Cuban cigars, Kobe beef and Spanish suckling pigs.

So far, 33 defendants have been charged and 22 have pleaded guilty, many admitting to accepting things of value from Francis in exchange for helping the contractor win and maintain contracts and overbill the Navy by millions of dollars.

The case was investigated by DCIS, NCIS and the Defense Contract Audit Agency.  The case is being prosecuted by Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher, Patrick Hovakimian and Robert Huie of the Southern District of California.

The former CEO of a charity headquartered in Springfield, Missouri has pleaded guilty to her role in a multi-million-dollar political corruption scheme that involved bribes and campaign contributions for elected public officials in Missouri and Arkansas, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Tim Garrison of the Western District of Missouri.

Marilyn Luann Nolan, 68, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush on Friday, Nov. 9, to one count of conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.

By pleading guilty, Nolan admitted that she conspired with others from 2008 to June 30, 2017, to misapply millions of dollars of the charity’s funds for substantial, undisclosed payments to lobbying firms and political advocates, monetary and in-kind contributions to the campaigns of candidates for public office, and to bribe public officials.  Nolan also admitted that she knew her co-conspirators defrauded the charity in order to enrich themselves, and her.

Nolan began working at Alternative Opportunities Inc., in 1992.  In 2015, that company merged with Preferred Family Healthcare Inc., after which it continued to be known as Preferred Family Healthcare.  Nolan was the chief executive officer and oversaw the charity’s lobbying and governmental affairs activities.

Preferred Family Healthcare and its subsidiaries provided a variety of services to individuals in Missouri, Arkansas, Kansas, Oklahoma and Illinois, including mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities and medical services.

Political Advocacy, Campaign Contributions, Fund-Raising Events

According to the plea agreement, Nolan and her conspirators caused the charity to misapply its funds to pay for political advocacy, including lobbying, that violated both IRS rules governing tax-exempt organizations, and federal laws and regulations governing recipients of federal grants and contracts.  Nolan admitted that she directed and assisted her co-conspirators to direct millions of dollars to lobbyists, including Donald Andrew Jones and Milton Russell Cranford, who previously entered pleas of guilty to federal crimes in related cases.  Nolan also directly lobbied legislators.

Under her plea agreement, Nolan also admitted that she and her conspirators:

• Caused the charity to contribute financially to the campaigns of candidates for public office through “straw donors,” including the charity’s lobbyists, who were also reimbursed by way of invoices that were falsely described as “training” and “consulting” expenses;
• Encouraged charity employees to contribute to candidates for public office and caused the charity to reimburse them for those contributions by providing funds falsely described as reimbursement for travel or other expenses the employees had not actually incurred; and
• Caused the charity to provide in-kind contributions to the campaigns of candidates for public office, including in Missouri where they organized fundraisers for several candidates running for seats in the Missouri State Senate, Missouri House of Representatives, and the Greene County Commission and in Arkansas, where Nolan and her conspirators organized fundraisers (often at hotels or restaurants) for many candidates running for seats in the Arkansas State Senate and Arkansas House of Representatives.

Nolan also admitted as part of her plea to directing an employee to use the charity’s resources to arrange for catering, liquor, decorations, and other food connected to political fundraisers.  This employee used a charity-issued corporate credit card for the purchases, with Nolan’s knowledge.

At all times relevant to Nolan’s plea, the charity was absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of, or in opposition to, any candidate for elective public office.  Contributions to political campaign funds violated this prohibition, and could have resulted in denial or revocation of tax-exempt status and the imposition of certain excise taxes.

Bribery of Elected Public Officials

According to the plea agreement, Nolan and her conspirators misapplied some of the charity’s funds to bribe elected public officials in the following manners:

• They gave things of value to numerous public officials, in exchange for their official actions benefitting the charity and themselves personally, including cash, travel and entertainment, premium tickets to sporting events, hotel accommodations, and use of the charity’s luxury/recreational real estate;
• They hired public officials and the family members of public officials as charity employees; and
• Nolan and the conspirators disguised bribes as contract payments for things such as consulting, training, and legal services.

The government believes the schemes Nolan pleaded guilty to totaled approximately $6 million.  The parties reserved the right in the plea agreement to litigate the exact amount of that loss, for the purpose of computing the federal sentencing guidelines.

Charity Embezzlement

As part of her plea agreement, Nolan also admitted that over an approximately 12-year period from 2005 to 2017, certain charity executives embezzled millions of dollars from the charity, from which Nolan profited.  Nolan admitted that although she did not know the full details of the many embezzlement and misapplication of funds schemes, she knew at the time that the charity bore additional costs from many of those transactions, and willfully blinded herself regarding the details of her conspirators’ schemes and artifices to defraud the charity.

One example referenced in Nolan’s plea agreement consisted of the formation of an LLC that was used as the management company for Alternative Opportunities, identified in court documents as Entity A.  In 2006, Entity A was sold to a publicly-traded corporation identified in court documents as Company A, which was also partly owned by Nolan.  Nolan admitted that this sale was perpetrated for the primary purpose of enriching charity executives, including herself.  Nolan’s share of the proceeds from the sale of Entity A to Company A was $3,769,536.

Nolan further admitted as part of her plea that she also received $361,574 from two LLCs identified as Entity B and Entity C where, immediately prior to the 2006 sale of Entity A to Company A, Entity B acquired title to all real estate formerly held by Entity A and Entity C held the title to the corporation’s headquarters building in Springfield, and duplex homes located in Springfield.

Under the terms of Friday’s plea agreement, Nolan must pay $4,131,111 in restitution to the government, less a credit for taxes she paid on the funds received.

A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

The case was investigated by IRS Criminal Investigation, the FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, Veterans Affairs, and the Federal Deposit Insurance Corporation (FDIC).  This is a combined investigation with the Western District of Arkansas, the Eastern District of Arkansas and the Public Integrity Section of the Department of Justice.  This case is being prosecuted by Trial Attorney Marco A. Palmieri of the Public Integrity Section and Assistant U.S. Attorney Steven M. Mohlhenrichof the Western District of Missouri.

The Justice Department announced today that British Airways Plc (BA) and Iberia Airlines (Iberia) have agreed to pay $5.8 million to resolve their liability under the False Claims Act for falsely reporting the times they transferred possession of United States mail to foreign postal administrations or other intended recipients under contracts with the United States Postal Service (USPS).  BA and Iberia are international airlines headquartered in Harmondsworth, United Kingdom, and Madrid, Spain, respectively.  BA and Iberia Airlines are both subsidiaries of the International Airlines Group.

“Government contractors, whether foreign or domestic, are required to obey the rules when billing the United States,” said Assistant Attorney General Joseph H. Hunt of the Department of Justice’s Civil Division.  “The Department of Justice will ensure that government contractors meet their obligations and charge the government appropriately.”

"The U.S. Postal Service contracts with commercial airlines for the safeguarding and timely delivery of U.S. Mail to foreign posts, including the mail sent to our soldiers deployed to foreign operating bases and other locations," said Steven Stuller, Acting Special Agent in Charge, U.S. Postal Service Office of Inspector General.  "The Office of Inspector General supports the Postal Service by aggressively investigating allegations of misconduct within the contract mail delivery process; in this case the falsification of delivery information.  We worked hand-in-hand with the Department of Justice's Civil Division to help ensure a reasonable resolution and to hold those parties accountable for their actions.  We applaud the exceptional work by the investigative and legal team and know it will have a positive impact on Postal Service operations."

USPS contracted with BA and Iberia to take possession of receptacles of United States mail at six locations in the United States or at various Department of Defense and State Department locations abroad, and then deliver that mail to numerous international and domestic destinations.  To obtain payment under the contracts, the airlines were required to submit electronic scans of the mail receptacles to USPS reporting the time the mail was delivered at the specified destinations.  Today’s settlement resolves allegations that scans submitted by BA and Iberia falsely reported the time the airlines transferred possession of the mail. 

This matter was handled by the Civil Division’s Commercial Litigation Branch, the USPS Office of the Inspector General, and the USPS Office of General Counsel.

The claims settled by this agreement are allegations only, and there has been no determination of liability.

Acting Attorney General Matthew Whitaker released the following statement on the FBI’s announcement of the 2017 Hate Crimes Statistics:

"This report is a call to action—and we will heed that call. The Department of Justice’s top priority is to reduce violent crime in America, and hate crimes are violent crimes. They are also despicable violations of our core values as Americans. I am particularly troubled by the increase in anti-Semitic hate crimes—which were already the most common religious hate crimes in the United States—that is well documented in this report. The American people can be assured that this Department has already taken significant and aggressive actions against these crimes and that we will vigorously and effectively defend their rights."

Last month, the Justice Department launched 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.  More information on the website and an update on Justice Department hate crimes prosecutions can be found here.

At the 11th hour of the 11th day of the 11th month of 1918, the guns fell silent and the First World War drew to an end. On this day ever since, our nation has shown its gratitude to the veterans of the United States Armed Forces. Veterans Day is an opportunity to show respect to the veterans we know as our friends, neighbors, relatives, and colleagues. The Department of Justice’s Civil Rights Division remembers the fallen, and offers thanks to all the men and women who have served in the military and their families.

The Civil Rights Division is home to the Department of Justice’s Servicemembers and Veterans Initiative, which coordinates the Department’s enforcement of laws that protect the rights of servicemembers and veterans. The Initiative also conducts outreach to the military community regarding these laws.

“It is my honor as the Assistant Attorney General for the Civil Rights Division to be entrusted with the responsibility of ensuring that the rights of the brave men and women of our nation’s armed forces, and the veterans who have served in the past, are safeguarded,” stated Assistant Attorney General Eric Dreiband. “The Civil Rights Division’s efforts have resulted in great benefits to our servicemembers and veterans, and we will continue these efforts during my tenure.  The violation of anyone’s civil rights is a disgrace, and the Civil Rights Division will not tolerate anyone who violates the rights of servicemembers or anyone else in our nation.”

The Department of Justice’s cases and settlements under the Servicemembers Civil Relief Act have resulted in $470 million in monetary relief for over 119,000 servicemembers and veterans who suffered violations of their financial and housing rights. In the past year alone, in addition to filing cases involving unlawful home foreclosures and unlawful auto repossessions, the Department brought its first case alleging an unlawful failure to refund pre-paid lease amounts to servicemembers who, due to their military service, terminated their motor vehicle leases early. The Department also brought its first two cases alleging unlawful requirements by landlords that servicemembers repay incentives offered at lease signing when terminating their residential leases early because of their military service.

The Division continues to enhance its enforcement of the Uniformed Services Employment and Reemployment Rights Act (USERRA) against private, state, and local government employers, through litigation, facilitated settlements, outreach, and advocacy. Since the Division began enforcing USERRA in 2004, it has filed 104 USERRA lawsuits and favorably resolved 185 USERRA complaints. During the Trump Administration, the Department of Justice has filed five complaints on behalf of seven servicemembers and filed or negotiated private settlements in excess of $500,000. For example, on May 21, the Department filed a complaint and settlement with the Puerto Rico Police Bureau (PRPB) that resolved allegations that the PRPB violated the employment rights of Puerto Rico Army National Guard Members Second Lieutenant Wilfredo Cruz Rivera, Sergeant Jose R. Bernal Martinez, and Sergeant Angel L. Martinez Toro.

The right to vote is among our most fundamental civil rights. Protecting the rights of servicemembers and their families to vote in our nation’s federal elections, whether they are serving here or abroad, is one of our highest priorities. Through the enforcement of the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA), the Department ensures that servicemembers and overseas U.S. citizens have the opportunity to request and receive absentee ballots in time to vote and have their votes counted. The Department vigilantly monitored nationwide compliance with UOCAVA for the 2018 federal elections. In 2018, the Department instituted litigation against the State of Arizona because it failed to transmit final absentee ballots within 45 days of a February 2018 special election, as required by law. The State of Arizona entered into an agreement that mandated that it provide additional time for the receipt of UOCAVA ballots to ensure that eligible military and overseas voters have sufficient time to vote in the special primary election and all future federal elections.

For our veterans with disabilities, the Department continues to vigorously enforce the Americans with Disabilities Act (ADA) to ensure equal access to all aspects of civic and community life. In recent months, the Department resolved complaints from veterans who alleged that, because they use a service animal, they were denied access to restaurants, shops, and health care facilities. Under these resolutions, these entities must comply with and train staff on the ADA’s service animal requirements and, where appropriate, compensate aggrieved individuals.

We are grateful to be a nation defined by the bravery of the men and women who have selflessly served our country. The Department of Justice thanks our brave and devoted veterans, and commits to honor our current military members and veterans through the ongoing work of the Servicemembers and Veterans Initiative.

Acting Attorney General Matthew Whitaker issued the following statement on Veterans Day: "This is the land of the free because it is the home of the brave," Acting Attorney General Whitaker said. "At the Department of Justice, we recognize that our rights depend upon public safety. Our troops risk their lives for that mission, and each of us owes them a debt of gratitude. Today, on the centennial of the Armistice, we stop as a nation to honor those who have taken up that noble mission and kept us safe and free.  I hope that all Americans will join me in thanking a veteran today and honoring their heroic service not just today but every day."

Real estate investor Avi Stern pleaded guilty today in West Palm Beach, in connection with an ongoing investigation into bid rigging at online public foreclosure auctions in Florida, the Department of Justice announced.  Stern is the third real estate investor to plead guilty in this investigation. 

Felony charges of bid rigging were filed against Stern on November 2, 2017, in the U.S. District Court for the Southern District of Florida.  According to court documents, from around January 2012 through around June 2015, Stern conspired with others to rig bids during online foreclosure auctions in Palm Beach County, Florida.

“Bid rigging at foreclosure auctions has produced enormous harm to many vulnerable communities around the country and directly affronts the values of a market economy,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “The Division will continue to prosecute similar antitrust violations, and will hold individuals who engage in such types of conduct accountable.”

“Real estate investors who think they can swindle the system to line their pockets with ill-gotten gains beware,” said George L. Piro, Special Agent in Charge, FBI Miami.  “The FBI and our law enforcement partners will vigorously investigate such schemes.”

The Department said that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected real estate offered at online foreclosure auctions at non-competitive prices.  When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with any remaining proceeds available to the homeowner.  According to court documents, the conspiracy artificially lowered the price paid at auction for such homes.  In the past several years, the Division and its law enforcement partners have secured convictions of more than 100 individuals for rigging public mortgage foreclosure auctions in six different states, including Florida. 

The investigation is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Miami Division – West Palm Beach Resident Agency.  Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal I Section of the Antitrust Division at 202-307-6694, call the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.

A Maryland gang member pleaded guilty today to his participation in a racketeering enterprise in furtherance of the activities of the gang known as La Mara Salvatrucha, or MS-13.

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

Kevin Alexis Hernandez-Guevara, aka “Stop,” 22, a citizen of El Salvador illegally residing in Elizabethtown, New Jersey, pleaded guilty before the Honorable Judge Paula Xinis in the District of Maryland to conspiracy to participate in a racketeering enterprise.  Hernandez-Guevara is scheduled to be sentenced on Feb. 15, 2019.

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

Pursuant to his plea agreement, Hernandez-Guevara admitted that from at least July 2016, he was a member and associate of the Sailors Clique.  Hernandez-Guevara admitted to participating in numerous acts in furtherance of the racketeering conspiracy.

For example, according to the plea agreement, on or about July 29, 2016, Hernandez-Guevara and three other members and associates of MS-13 planned and conspired to murder Victim-2, who was believed to be a member of a rival gang.  On July 29, 2016, pursuant to that plan, Hernandez-Guevara and other MS-13 members and associates lured Victim-2 to a secluded area in Hyattsville, Prince George’s County, Maryland.  One of the MS-13 members and associates shot at Victim-2, and missed.  Hernandez-Guevara collected the fired shell casings from the gunshots fired by Hernandez-Guevara’s co-conspirator.  Multiple MS-13 members and associates then assaulted and stabbed Victim-2 with the intention of killing him.  Victim-2 died as a result of injuries sustained during this attack, which included 61 sharp force injuries.

Additionally, according to the plea agreement, on or about Aug. 9, 2016, in Hyattsville, Hernandez-Guevara and other MS-13 members and associates planned and attempted to rob Victim-3 and Victim-4 of a pound of marijuana that Victim-3 and Victim-4 were going to sell to Hernandez-Guevara and his co-conspirators.  During the attempt, Victim-3 and Victim-4 resisted.  In the course of the struggle, Victim-3 and Victim-4 were shot, stabbed, and sustained serious, permanent, and life threatening bodily injuries.  Hernandez-Guevara and another co-conspirator were also shot. 

Hernandez-Guevara also admitted to distributing less than one kilogram of marijuana for and on behalf of the Sailors Clique.  His activities included receiving and distributing marijuana and proceeds from the sale of marijuana. 

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

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

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

On Nov. 9, the U.S.-EU Ministerial Meeting on Justice and Home Affairs took place in Washington. D.C. The United States hosted the meeting and was represented by the U.S. Acting Attorney General Matthew G. Whitaker and Secretary for Homeland Security Kirstjen Nielsen.

The European Union was represented by the Commissioner for Migration, Home Affairs and Citizenship Dimitris Avramopoulos, as well as by the Austrian Federal Minister for the Interior Herbert Kickl, the Austrian Federal Minister for Constitutional Affairs, Reforms, Deregulation and Justice Josef Moser, the Romanian Minister of the Interior Carmen Daniela Dan and the Romanian Secretary of State for Justice Sebastian Costea on behalf of the current and incoming Presidencies of the Council of the European Union.

The United States and the European Union reaffirmed their commitment to jointly address common challenges in the areas of justice and home affairs and praised the excellent level of exchanges and operational cooperation, for the benefit of the security of citizens on both sides of the Atlantic.

The United States and the European Union underlined the importance of effective information sharing for their shared efforts to combat terrorism, focusing on battlefield information, Passenger Name Records (PNR) and aviation security. Participants emphasized the importance of PNR information sharing as a tool for the prevention of terrorist travel and agreed to prepare for a joint evaluation in 2019, in compliance with the provisions of the US-EU PNR Agreement. The United States and the European Union recognized the need to enhance their efforts to address the challenge of terrorists’ use of the internet to direct and inspire attacks, while respecting individual rights, including freedom of speech. Both sides shared information on their respective initiatives, including efforts to better engage and partner with service providers.

The United States and the European Union recognized that electoral systems in democratic states face unprecedented challenges that require innovative and comprehensive solutions, as well as cooperation and best practice exchanges between like-minded countries. On that topic, participants briefed each other on current actions to build more resilient electoral systems. In order to promote exchanges between relevant experts from both sides on current challenges to elections, including such challenges as disinformation campaigns and other forms of online and offline interference, the United States and the European Union agreed to set up a regular dialogue on these matters, the details of which should be developed at the next senior officials meeting in 2019.  

The United States and the European Union reiterated the priority they attach to fighting cybercrime and enhancing cybersecurity. They recognized the need to maintain a global, open, stable and secure cyberspace for the promotion of economic and social development and, in this context, stressed the valuable contribution of joint work conducted by U.S. and EU law enforcement agencies to combat, deter and prevent cybercrime and called for the expansion of such cooperation, as appropriate. Participants also acknowledged the challenge in obtaining timely and lawful access to encrypted data, in accordance with individual rights and civil liberties, by those investigating and solving criminal offenses and exchanged views on their respective practices to counter such challenges. Participants took note of the dialogue that took place in Brussels between the cybersecurity experts at DHS and the EU and agreed to continue to collaborate to strengthen the cybersecurity posture on both sides of the Atlantic.

The United States and the European Union agreed on the importance for both law enforcement and judicial authorities of swift cross-border direct access to electronic evidence, as demonstrated by recent legislation approved or under examination in the United States and the EU.  Participants further recognized the benefit of exploring, and agreed to discuss, the possibility of an U.S.-EU agreement to facilitate access to electronic evidence.

The United States and the European Union exchanged information on developments in the area of migration and border management, with a particular focus on efforts to prevent and combat migrant smuggling and trafficking of human beings. The United States and the European Union agreed on the importance of advancing towards reciprocal visa free travel under their respective legal frameworks and, following the most recent tripartite meeting on visa reciprocity, welcomed the progress of the five concerned Member States towards meeting the statutory requirements of the Visa Waiver Program, in order to be considered for designation in the program.

The United States and the European Union underscored their shared concerns about the major international drug-control threats posed by illicit synthetic opioids, including fentanyl and its derivatives. Both sides took note of the U.S.-EU Political Dialogue on Drugs held on Oct. 18, 2018.

Reiterating the progress made and the need to face global challenges together, the United States and the European Union remain committed to reinforce their partnership and meet again in the first half of 2019 in Bucharest, Romania.

On November 7th, the Department of Homeland Security (DHS) Office of Intelligence and Analysis (OIA) recognized the partnership of INTERPOL Washington—the U.S. National Central Bureau—in homeland security intelligence sharing.  OIA nominated INTERPOL Washington for the “HSIN-Intel Partner of the Year” that honors National Fusion Center Association (NFCA) partners for significant contributions to the sharing of unclassified intelligence information and products, analytic collaboration, and real-time information exchange via the HSIN-Intel platform. The nomination was announced during the 2018 National Fusion Center Association (NFCA) Annual Training Event in Alexandria, VA.  

INTERPOL Washington was nominated for its sharing of Orange and Purple Notices with U.S. and international law enforcement. Orange notices warn of an event, a person, an object or a process representing a serious and imminent threat to public safety. Purple notices provide information on modus operandi, objects, devices and concealment methods used by criminals. Additional criteria for the award nominations include providing exceptional resources/services, serving as an example of best practices to the Nation; enhancing analytic collaboration and real-time information exchange Nationwide; and directly contributing to improving the awareness of threats and efforts to enhance security postures through information sharing.

Fusion centers operate as state and major urban area focal points for receiving, analyzing, gathering, and sharing threat-related information between federal; state, local, tribal, territorial (SLTT); and private sector partners. The NFCA represents the interests of those partners in order to promote the development and sustainment of fusion centers to enhance public safety; encourage effective, efficient, ethical, lawful, and professional intelligence and information sharing; and prevent and reduce the harmful effects of crime and terrorism on victims, individuals, and communities.

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

After President Trump’s Presidential Proclamation regarding the Southwest Border, Acting Attorney General Matthew Whitaker issued the following statement of strong support: "Our southern border is in crisis. The hundreds of thousands of illegal aliens who have unlawfully crossed our border are posing a significant threat to the government’s ability to effectively enforce our nation’s immigration laws. Plain and simple, there are too many loopholes in our current immigration system. The vast majority of asylum claims that originated from this system are not meritorious. What’s worse, large numbers of aliens fail to even pursue their claims in court and many fail to appear for their court hearings.

“Today, the President has made a strong statement that enough is enough. Aliens with legitimate claims to asylum can still receive it—they simply have to go to one of our ports of entry. Thanks to this decisive order from President Trump, we are continuing to provide a path to protection for those who truly need it, while stopping our generosity from being abused."

The total number of aliens referred to expedited removal proceedings has significantly increased over the last decade, from 161,516 aliens in 2008 to approximately 234,534 in FY 2018.  The total number of credible-fear referrals for interviews increased from about 5,000 a year in Fiscal Year (FY) 2008 to about 97,000 in FY 2018.

The vast majority of asylum applications are not meritorious.  In FY 2018, a total of about 6,000 aliens who passed through credible-fear screening (17 percent of all completed cases, 27 percent of all completed cases in which an asylum application was filed, and about 36 percent of cases where the asylum claim was adjudicated on the merits) established that they should be granted asylum. 

More than approximately 70,000 aliens a year (as of FY 2018) are estimated to enter between the ports of entry and then assert a credible fear in expedited removal proceedings.  Another 24,000 assert fear to return at our ports of entry.

As of November 2, 2018, there were approximately 203,569 total cases pending in the immigration courts that originated with a credible-fear referral—or 26 percent of the total backlog of 791,821 removal cases.

Of that number, 136,554 involved nationals of Northern Triangle countries.  89 percent of aliens from the Northern Triangle receive a positive credible-fear interview.

But in nearly half of the completed cases involving these aliens, the alien failed to appear at a hearing or failed to file an asylum application.

• 71 percent were of claims completed with the issuance of an order of removal.
• 31 percent were of claims completed where the alien failed to appear at a hearing.
• 40 percent were of claims completed without the alien filing an application for asylum
• Only nine percent were ultimately granted asylum.

Two employees of SK Engineering & Construction Co., Ltd. (SK), a large multinational corporation based in the Republic of Korea (South Korea), were charged today with participating in a scheme to defraud the United States by submitting fraudulent subcontracts to conceal bribes and kickbacks paid to an American public official, in relation to U.S. Army construction contracts in South Korea. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Dunavant of the Western District of Tennessee, Special Agent in Charge Ray Park of the U.S. Army Criminal Investigation Command (Army-CID) Pacific Fraud Field Office, Special Agent in Charge Stan Newell of the Defense Criminal Investigative Service (DCIS), and Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Field Office made the announcement.

Hyeong-won Lee, 58, and Dong-Guel Lee, 48, both citizens of South Korea and employees of  SK Engineering & Construction Co., Ltd. (SK), were charged with one count of conspiracy to defraud the United States and to commit wire fraud and obstruction of justice, and one count of major fraud against the United States.  Hyeong-won Lee was also charged with two counts of wire fraud and one count of money laundering conspiracy, and Dong-Guel Lee was charged with one count of witness tampering in relation to a wide-ranging bribery and fraud scheme from 2008 to 2017.  The defendants are not related.

“Hyeong-won Lee and Dong-Guel Lee allegedly submitted fraudulent construction subcontracts to disguise millions in kickback payments to a public official and then tried to cover their tracks,” said Assistant Attorney General Benczkowski.  “The Department of Justice is dedicated to protecting taxpayer dollars by safeguarding the integrity of government contracts and construction projects that support our U.S. military and civilian personnel, wherever they serve around the world.”

“Protecting the U.S. Treasury and the interests of the federal government abroad is a top priority of this office, and this indictment shows our commitment to hold foreign actors accountable for major fraud committed against the United States,” said U.S. Attorney Dunavant.

According to the indictment, the defendants, acting on behalf of SK, submitted fraudulent subcontracts to the U.S. Army as part of two construction contracts at Camp Humphreys, South Korea, worth hundreds of millions of dollars.  The indictment alleges that the defendants and their co-conspirators used these fraudulent subcontracts to launder millions of dollars in kickbacks for a U.S. public official who had steered two Camp Humphreys construction contracts to SK.  

The indictment also alleges that the defendants obstructed investigations into the scheme.  According to the indictment, Hyeong-won Lee ordered SK employees to destroy documents related to the fraudulent subcontract, and SK employees burned boxes of documents in order to prevent their use by investigators.  The indictment also alleges that Dong-Guel Lee, acting on SK’s behalf, impeded federal investigations by dissuading witnesses from testifying about their knowledge of the scheme.

Army-CID, DCIS, and the FBI are investigating the case.  Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tony Arvin of the Western District of Tennessee are prosecuting the case.  The Fraud Section is grateful for the assistance of the Criminal Division’s Public Integrity Section in this case.

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

Antitrust agency heads from the United States, Canada, and Mexico meet today in Mexico City to discuss their ongoing work to ensure consistent and effective antitrust enforcement and increased cooperation among the three nations.

The meeting includes Assistant Attorney General Makan Delrahim of the U.S. Department of Justice’s Antitrust Division, Federal Trade Commission Chairman Joseph J. Simons, Canadian Acting Commissioner of Competition Matthew Boswell, and President Alejandra Palacios of the Mexican Federal Economic Competition Commission.

The discussions will cover a wide range of topics including developments and priorities, challenges for enforcers in times of antitrust populism, and procedural fairness in antitrust investigations. The officials also are exploring ways to deepen cooperation and convergence on sound antitrust principles.

“The Division’s close relationship with our antitrust colleagues in Mexico and Canada is critical to sound antitrust enforcement in North America,” said Assistant Attorney General Delrahim.  “We look forward to our continued efforts to work with our international partners to promote competition to the benefit of consumers.”

“Strengthening ties with our closest neighbors is always a top priority, and I look forward to finding new avenues for cooperation,” said Federal Trade Commission Chairman Joseph J. Simons.

The owner of a Michigan home health agency was sentenced to 84 months in prison today for her role in a scheme involving approximately $1.6 million in fraudulent Medicare claims for home health services that were procured through the payment of kickbacks, and that were medically unnecessary and not provided.

Assistant Attorney General Brian A. Benczowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.

Editha Manzano, 70, of Troy, Michigan, was sentenced by U.S. District Judge Gershwin A. Drain of the Eastern District of Michigan.  Judge Drain also ordered Manzano to pay $1,593,804.35 in restitution, jointly and severally with her co-conspirators, and to forfeit $758,407.07.  On Dec. 4, 2017, Manzano was convicted after a two-week trial on all counts that were charged in the indictment -- one count of conspiracy to commit health care and wire fraud, one count of conspiracy to pay and receive kickbacks in connection with Medicare beneficiaries, and one count of health care fraud.

According to evidence presented at trial, from 2013 to 2016, Manzano masterminded a scheme to defraud Medicare of approximately $1.6 million by submitting false and fraudulent claims for home health care services in connection with Anointed Care Services (Anointed), a Detroit-area home health care agency.  Medicare requires that physical therapy and skilled nursing services in the home be provided only to Medicare beneficiaries who are homebound and need the services.  The evidence showed that Manzano paid illegal kickbacks in exchange for recruited beneficiaries’ signatures on blank home health documents.  The evidence further showed that Manzano conspired with physicians to admit beneficiaries for home health care with Anointed when they did not qualify for such services.  Manzano and her co-conspirators then billed Medicare for home health services that were never provided, the evidence showed.  To make it appear that the services were medically necessary and actually provided, Manzano and her co-conspirators fabricated and falsified medical records, the evidence showed. 

The evidence further showed that Manzano conspired with physicians to provide medically unnecessary opioids to beneficiaries who signed up for home health care with Anointed.  Some of these beneficiaries sold the opioids to drug dealers to be resold on the street; others traded the opioids to drug dealers in exchange for crack cocaine.

Manzano was charged along with Liberty Jaramillo, 68, also of Troy; Roberto Quizon, M.D., 72, of Bloomfield Hills, Michigan; Juan Yrorita, R.N., 64, of Sterling Heights, Michigan, and Victoria Gallardo-Navarra, M.D., 75, also of Bloomfield Hills, in an indictment returned on Sept. 1, 2016.  Jaramillo and Quizon pleaded guilty prior to trial and were sentenced to serve 36 months and 18 months in prison, respectively.  Gallardo-Navarra was acquitted, and Yrorita pleaded guilty on the fifth day of trial and was sentenced to serve 36 months in prison. 

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.  Trial Attorneys Jacob Foster and Rebecca Yuan of the Fraud Section prosecuted the case.

The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

          SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant MARKHAM LYNCH, age 52, from Tamuning, was sentenced today in District Court by Senior District Judge Alex R. Munson for Conspiracy to Commit Marriage Fraud, in violation of Title 18, United States Code, Section 371. Defendant LYNCH was sentenced to 50 hours of community service, two years probation, $8,500 fine, and a $100 special assessment fee.

          LYNCH and Jong Yun Kim conspired for LYNCH to illegally marry and petition for Kim’s girlfriend to receive a Permanent Resident Card and remain in the United States. LYNCH would receive $20,000 or more if the plan succeeded. At the time, Kim’s girlfriend was unlawfully present in the United States under the terms of the Guam Visa Waiver Program. LYNCH and Kim’s girlfriend were married in the Superior Court of Guam in 2014. LYNCH informed immigration officials that he and Kim’s girlfriend were living together when, in fact, they were not. Kim’s girlfriend had been residing with Kim since her entry into Guam.  LYNCH received $8,500 for the fraudulent marriage.  Kim was convicted earlier this year for his part in the scheme.

          U.S. Attorney Anderson stated, “The Guam Visa Waiver program allows the entry of certain foreign nationals for not more than 45 days for the limited purposes of business and tourism. The program has the potential to greatly benefit Guam’s economy. However, as demonstrated by this case, those admitted may use the program as a means to commit criminal offenses once on island. Abuse of the waiver system by foreign nationals or United States citizens risks its continued viability. Foreign nationals who are convicted of violating our immigration laws also risk deportation and being barred from future entry. Our office will assist Homeland Security Investigations at every opportunity to enforce federal immigration laws on Guam and the Northern Mariana Islands.”

          Special Agents from the Department of Homeland Security, Homeland Security Investigations (HSI) conducted the investigation. Assistant United States Attorney Stephen F. Leon Guerrero prosecuted the case.

The former CEO of Citrades pleaded guilty today for his role in a scheme to defraud investors out of $8.3 million in the United States and across the world in financial instruments known as “binary options,” announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office.  Citrades was a purported internet-based investment platform.

Jason Benjamin Scharf, 37, of Los Angeles, California, pleaded guilty to one count of conspiracy to commit wire fraud before U.S. District Judge George H. Wu of the Central District of California.  Sentencing has been scheduled for Feb. 25, 2019, before Judge Wu. 

As part of his guilty plea, Scharf admitted that from February 2013 through December 2015, he oversaw the day-to-day operations of Citrades as the company’s CEO, and that he agreed with his co-conspirators to induce investors to purchase binary options based on materially misleading misrepresentations and omissions.  As described in the plea agreement, a binary option is a type of option contract in which the payout depends on the outcome of a discrete event, typically related to whether the price of a particular asset—such as a stock or a commodity—will rise above or fall below a specified amount. 

Scharf admitted that representatives of Citrades falsely claimed to be representing the interests of investors in binary options when in reality they were representing the financial interests of Citrades.  Scharf further admitted that while Citrades marketed itself as a trading platform through which binary options could be traded, investors were not actually trading with other investors.  Instead, they were investing in transactions whose parameters, including the “strike price” associated with the binary option, were set by a separate company that served as a platform provider.  Scharf admitted that Citrades operated its binary options business principally out of Israel, but had representatives and co-conspirators working on its behalf in the United States. 

Scharf further admitted that after being served with an administrative subpoena, he deleted potentially incriminating emails from an account that he used to conduct Citrades-related business. 

This case was investigated by the FBI.  Trial Attorney Ankush Khardori of the Criminal Division’s Fraud Section is prosecuting the case.  The Criminal Division’s Office of International Affairs and the Israeli National Police also provided assistance. 

Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.

Attorney General Jeff Sessions signed a memorandum yesterday providing direction to all civil litigating components and United States Attorneys’ Offices (USAOs) on the principles that should be followed when resolving a civil lawsuit against a state or local governmental entity. State and local governments have unique roles under the Constitution, and the Department is committed to ensuring that its practices in these cases are transparent, impartial, and consistent with fundamental constitutional principles, including democratic control and accountability.   

The memo includes guidelines on:

• How civil litigating components and USAOs should handle investigations and reports of allegations;
• The notice, approval, and substantive requirements for consent decrees[1] and settlement agreements, as well as constitutional and policy considerations;
• Use and limits of monitors for state and local governmental entities.

These guidelines are designed to ensure that consent decrees with state and local governments are narrowly tailored to remedy the alleged violations, and are not used to extract greater relief from the state or local government than the Department could obtain through litigation.  They are also structured to ensure that, where appropriate, responsibility is returned to democratically accountable state and local institutions.  Requirements include, but are not limited to, limits on duration of a consent decree, clear triggers for termination, and prohibitions on using consent decrees to achieve general policy goals. The memo also clarifies the approval process for both consent decrees and settlement agreements, to ensure that they receive appropriate review by the Office of the Deputy Attorney General, the Associate Attorney General, and other senior Department leadership.

The full text of the memo can be found

[1] A consent decree is a negotiated agreement entered as a court order that is enforceable by the court. A settlement agreement is an out-of-court resolution that requires a signed agreement, or memorandum of understanding, and performance by the defendant. Required periodic assessment of compliance or noncompliance is handled by consultation of the parties without involving a court. If there is a breach of contract by the defendant, the government may file a lawsuit to enforce the agreement. 

Daniel Davis, 41, a former Major at Louisiana State Penitentiary (LSP) in Angola, Louisiana, was found guilty by a jury today in federal court for beating an inmate who was handcuffed, shackled, and not resisting.  In a previous trial in January, Major Davis was convicted of conspiring with other officers to cover up the beating by devising a false cover story, submitting false reports documenting that cover story, tampering with witnesses, and lying under oath.  Four other officers—former Captains James Savoy, John Sanders, and Scotty Kennedy, and former Sergeant Willie Thomas—have all previously pleaded guilty for their roles in the beating and cover up.  At Davis’s trial, Captains Sanders and Kennedy testified for the government and described the abuse and the extensive cover up.

After hearing testimony over the course of three days, the jury convicted Davis of willfully depriving the inmate of his right to be free from cruel and unusual punishment.  The evidence showed that Davis initiated the beating by yanking the inmate’s leg chains, causing the inmate to fall face-first onto the concrete breezeway. At that point, Davis and the other officers punched, kicked, and stomped on the inmate, leaving the inmate with a bloody gash under his eye, a dislocated shoulder, broken ribs, and a collapsed lung. 

“Mr. Davis abused the justice system by beating an inmate, writing false reports, and using his influence and power as a corrections officer to encourage others to lie,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Justice Department will continue to prosecute correctional officers who violate federal criminal law.”

“Our office is committed to protecting the civil rights of all citizens and ensuring that government employees in positions of authority don’t abuse that authority,” said U.S. Attorney Brandon J. Fremin. “I want to thank the  Civil Rights Division of the Department of Justice, the  FBI, and the Louisiana Office of Inspector General for their work on this matter. “

"Charged with protecting the civil rights of others, to include those in custody, is a responsibility the FBI takes very seriously,” said Eric J. Rommal, FBI New Orleans Special Agent in Charge.  “Law enforcement officers and correctional officers acting under the color of law must ensure a person's civil rights are not violated. The jury's decision today reinforces the FBI's commitment that civil rights and color of law violations will not be tolerated.”

“Corrections officers are given great authority and power in our system because public safety depends on them doing their jobs well,” said Louisiana Inspector General Stephen Street. “When those corrections officers commit crimes by choosing to abuse their power, as defendant Davis did in this case, they must be held accountable, or public trust in the system suffers.  The jury’s guilty verdict should send a clear message that we have zero tolerance for it and will continue to aggressively pursue these cases whenever and wherever they may arise. I wish to thank the FBI, United States Attorney Brandon Fremin and the prosecutors from the DOJ Civil Rights Division for their outstanding work on this case.”

No date has been set for Davis’s sentencing. He faces a maximum penalty of five years of imprisonment on the conspiracy and perjury counts, 10 years of imprisonment on the excessive force count, and 20 years of imprisonment on each of the remaining obstruction counts.

This case was investigated by the FBI’s Baton Rouge Resident Agency Office and the Louisiana Office of the State Inspector General. The case was tried by Trial Attorneys Christopher J. Perras and Zachary Dembo of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Frederick A. Menner, Jr., of the Middle District of Louisiana.

A former West Palm Beach, Florida resident pleaded guilty today to multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.

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 George L. Piro of the FBI’s Miami Field Office made the announcement. 

Braulio De la Cruz Vasquez, 54, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft.  Sentencing is scheduled for Jan. 18, 2019, before U.S. District Judge Beth Bloom of the Southern District of Florida. 

According to the plea agreement, De la Cruz and his co-conspirators participated in a scheme to steal access to existing cell phone accounts, and fraudulently open new cellphone accounts, using the personal information of individuals around the United States. 

De la Cruz admitted that his role in the scheme included operating a “call site” from his residence in West Palm Beach.  He admitted that he would receive telecommunication identifying information associated with customers’ accounts from his co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that he controlled.  According to the plea agreement, De la Cruz’s co-conspirators would then transmit thousands of international calls over the internet to De la Cruz’s residence, where he would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates.  The calls were billed to the customers’ compromised accounts. 

In addition, De la Cruz admitted that from March 2011 through April 2013, co‑conspirators sent him more than 700 emails containing approximately 2,158 telecommunications identifying numbers associated with cellphone account holders around the United States.  He also admitted that, as part of the conspiracy, he received tens of thousands of dollars from at least one Voice over Internet Protocol (VoIP) company for fraudulently routing international calls through his call center.

De la Cruz is a citizen of the Dominican Republic.  He was arrested in the Dominican Republic at the request of the United States and then, in August 2018, extradited to Miami, where he is currently in custody.

De la Cruz is the fifth defendant to plead guilty in the case.  Previously, defendants Edwin Fana, Farintong Calderon, Jose Santana, and Ramon Batista pleaded guilty to similar charges and have already been sentenced to prison terms ranging from 36 months to 75 months.

The FBI Miami’s Cyber Task Force investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud.  The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service.  Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.

A federal court in Las Vegas, Nevada permanently enjoined six individuals and 14 corporate entities from activities related to an alleged mail fraud scheme, the Department of Justice announced today.

In a complaint filed in February, 2018, the United States alleged that the defendants mailed thousands of fraudulent solicitations each week. The solicitations purported to inform recipients that they had won large cash or prize packages, but needed to pay a fee to claim the winnings. The solicitations were styled as individual notices and stressed to recipients that they must return the requested fee quickly. According to the complaint, some of the solicitations contained what appeared to be handwritten notes congratulating the recipients on their good fortune, while others reassured recipients that the letters were not a scam. Individuals who sent the requested fees did not receive the expected prizes. The complaint alleged that the Las Vegas-based scheme defrauded consumers out of more than $10 million.

“Consumers should be able to open their mail without encountering false promises of wealth,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “The Department has and will continue to relentlessly pursue schemes like this one.”

“Some of these defendants constantly changed their schemes in attempts to stay one step ahead of the law,” said Delany DeLeon-Colon, Inspector in Charge for the U.S. Postal Inspection Service. “These results make clear that we will peel back the layers, find the individuals behind these schemes, and hold them to account.”

The complaint alleged that defendant Patti Kern orchestrated the activities of the other individual defendants, all of whom live in the Las Vegas area. The complaint alleged that defendants Edgar Del Rio, Sean O’Connor, and Epifanio Castro printed the solicitations; defendant Andrea Burrow opened and processed victim responses; and defendant Stephen Fennell managed the scheme’s lists of recipients. The solicitations were mailed under a plethora of company names, including 11 of the entities named as corporate defendants in the complaint.  

The district court entered a default judgment against 11 defendants today and previously entered consent decrees against the nine other defendants named in the complaint. Those orders prohibit the defendants from mailing solicitations like those identified in the complaint, as well as from engaging in activities related to such mailings, including receiving, handling, or opening any victim mail responding to solicitations and using or benefiting from lists of victims who previously responded to solicitations. Additionally, the orders authorize the U.S. Postal Inspection Service to open mail that was detained by law enforcement and return payments to the scheme’s victims. 

The matter was handled by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch, in coordination with the United States Attorney’s Office for the District of Nevada and the United States Postal Inspection Service.  Additional information on the original enforcement actions and Department of Justice’s efforts to combat elder fraud is at: https://www.justice.gov/opa/pr/justice-department-coordinates-nationwide-elder-fraud-sweep-more-250-defendants. 

The Department of Justice’s Office of Prosecutorial Development and Training (OPDAT), with the support of the Department of State’s International Narcotics and Law Enforcement Division (INL), celebrated the release of “Reflections on the Accusatory System: Shared Experiences” in the Salón Marqués-Conde of the Hotel Marquis Reforma in Mexico City on the evening of Nov. 7.

This volume, authored by a cohort of judges from the Puerto Rican Judiciary, the Federal Judiciary of the United States, and the Judiciary of Colombia, gathers the insights of OPDAT’s closest judicial partners on the role of judges within Mexico’s new accusatory criminal justice system.  These judges have generously volunteered their time and expertise to work with OPDAT’s Judicial Studies Institute (JSI) in Mexico and Puerto Rico since 2016.  The Honorable Edgardo Rivera García, Associate Justice of the Supreme Court of Puerto Rico, and the Honorable Gustavo Gelpí, Chief Judge of U.S. District Court for the District of Puerto Rico, have been especially instrumental in supporting OPDAT’s programming. The JSI program, funded by the Merida Initiative, strengthens the effectiveness of hundreds of Mexican federal appellate and amparo judges.  

“The exchange among our dear friends at the Puerto Rican Supreme Court and the Puerto Rican federal courts, gave us a completely distinct outlook from the judicial trainings in countries like Chile and Colombia,” said Justice of the First Chamber of the Mexican Supreme Court Justice, the Honorable Jorge Mario Pardo Rebolledo.  “The shared experience [of the Mexico-Puerto Rico Judicial Studies Institute] has been and continues to generate the most useful knowledge for Mexico’s new accusatory criminal justice system.”

This event commemorated the commitment of OPDAT and its partners to supporting Mexico’s judicial sector in the face of the challenges presented by transnational organized crime.