District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Sallisaw Man Sentenced to 30 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Samuel Jason Nutt, age 50, of Sallisaw, Oklahoma, was sentenced to 30 months imprisonment and 3 years supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e). The charges arose from an investigation by the Sallisaw Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on December 29, 2017, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a Chinese, Model 54-1, 7.62 x 25mm caliber pistol, serial number 3700126799, a firearm which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “Working with local, state, tribal, and federal law enforcement agencies to combat violent crime is a priority of the Department of Justice and U.S. Attorney’s Offices. One of the federal laws available to us to carry out that priority prohibits convicted felons from possessing firearms. The defendant in this case violated that federal law and is being held accountable accordingly. This joint effort by the Sallisaw Police Department, ATF, and members of this office is an example of interagency team work that occurs on a daily basis in the Eastern District of Oklahoma and across the country. When agencies work together, the public benefits.”
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, local, and tribal agencies to cooperate in a unified team effort against gun crime, targeting repeat offenders who continually plague their communities.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Justice Department Honors Law Enforcement Officers and Deputies in Second Annual Attorney General’s Award for Distinguished Service in PolicingRead the Press Release
Attorney General Jeff Sessions and Justice Department leadership today announced the recipients of the Second Annual Attorney General’s Award for Distinguished Service in Policing, recognizing the exceptional work of 25 law enforcement officers and deputies from 12 jurisdictions across the country.
“The Trump Administration supports law enforcement at all levels—and we always will,” said Attorney General Sessions. “Today’s awards honor the incredible work that is being done across this country every day. This Department of Justice takes pride in announcing today’s winners of the Attorney General’s Award for Distinguished Service in Policing.”
The Justice Department has been committed to supporting law enforcement and continues to back the “women and men in blue,” as directed by President Trump’s February 2017 Executive Order. The Department has recently awarded grants to assist law enforcement and first responders who supported mass shootings in Las Vegas, Nevada, Parkland, Florida, and Santa Fe, Texas. In addition, the Department has helped police departments across America to hire hundreds more police officers through the COPS grant program.
The Attorney General’s Award recognizes individual state, local, and tribal sworn rank-and-file police officers and deputies for exceptional efforts in policing. The awarded officers and deputies have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations or innovations in community policing. The Department received 207 nominations for 469 individuals ranging from state police departments, to local police, to campus public safety agencies. This award highlights the work that officers and deputies do to prevent, intervene in, and respond to crime and public safety issues. The individuals recognized today are listed below:
INNOVATIONS IN COMMUNITY POLICING
Sergeant Sean Crotty of the Little Egg Harbor Police Department, New Jersey:
Sergeant Sean Crotty is the school resource officer at the local high school. His main responsibility is the protection of the school community. However, he also takes on the arguably greater role of getting involved with students, shaping the way they view law enforcement, and helping mold them into productive community members. While Sergeant Crotty’s “beat” is the high school, this does not limit him to creating relationships with the younger students in the community. In his years with the department, Sergeant Crotty started a Junior Police Academy for middle school students, enhanced free Police Athletic League (PAL) programs, and added a Junior Police Explorers program.
Detective John Rastetter of the Canton Police Department, Ohio:
Detective Michael Rastetter’s work with those suffering from opioid addiction has set him apart among a department full of dedicated officers continuously looking for innovative ways to serve their community. Detective Rastetter became the point person for the newly created Stark County Outreach Support (SOS) team, a quick response team made up of a nurse, a social worker and a vice detective. SOS has engaged 70 overdose survivors and 33 family members, connected 30 individuals with rehabilitation services and provided 19 Naloxone kits, leading to a reduction of nearly 60 percent in opioid-related overdose deaths in 2017. Detective Rastetter is a large part of the success of the program and decline in the overdose deaths.
Officer Laurie Reyes of the Montgomery County Police Department, Maryland:
Officer Laurie Reyes noticed that repeated searches for the same critically missing people (individuals with autism, intellectual and developmental disabilities [IDD], and Alzheimer’s disease) demanded a large portion of departmental resources, both in money and in officers’ time. She created the nationally recognized “Autism, Intellectual, Developmental Disabilities, and Alzheimer’s Outreach Program” as a way to promote awareness and safety through education, outreach, follow-up, empowerment and response. Officer Reyes identified a problem and developed a creative solution, which had a significant impact on public safety and public trust, all at no additional fiscal cost to the agency.
CRIMINAL INVESTIGATIONS
Officer Megan Freer of the Middleton Township Police Department, Pennsylvania:
In the summer of 2017, a 19-year-old man went missing near Middletown Township. Officer Freer began an intensive investigation into the missing person case, which eventually led to the discovery of a horrific quadruple homicide in Solebury Township, about 20 miles away. Officer Freer’s incredible investigative efforts led to the arrest of two 20-year-olds charged with murder of the four young men, and providing closure for the families of those missing young men. This was a tremendous effort of policing and police investigation, and Officer Freer has received several awards for her investigative effort, including the Philadelphia National Liberty Museum Award of Valor in September 2017.
Detective Andrew Beuschel, Jr. of the Evesham Township Police Department, New Jersey:
In December 2017, a father called the police when he found his 15-year-old daughter unresponsive due to a possible drug overdose; an ambulance transported the victim to the hospital, where she subsequently died from a heroin overdose two days later. Detective Beuschel investigated the case, including interviews and evidence from numerous warrants on cell phones, computers, and social media accounts, and was able to locate the suspected seller. Detective Beuschel’s persistence led to arrest warrants for possession of heroin, distribution of heroin, and ultimately, strict liability of the suspect for the drug-induced death of the 15-year-old victim.
Trooper Joel D. Follmer of the Pennsylvania State Police:
State Trooper Joel D. Follmer’s determined efforts and innovative policing techniques on an 18-month series of kidnapping and rape investigations throughout Pennsylvania led to the arrest of a serial rapist with assaults dating back as far as 1994. Trooper Follmer arrested the suspect in December of last year, who immediately confessed to several cases, and provided information on many others that he had attempted in the past and was planning in the future. The suspect is currently awaiting trial.
FIELD OPERATIONS
Sergeant Girard Tell III and Sergeant Ryan VanSyckle of the Pleasantville Police Department, New Jersey:
Since 2016, Sergeants Tell and VanSyckle have consistently led the department in arrests and drug seizures by their dogged persistence to seek out and dismantle criminal street gangs, including a regional investigation, which netted more than 100 felony indictments against the South Side Mob street gang. Their tireless drive to remove the most dangerous and violent offenders has had a significant impact on the criminal operating environment within the community, including a steady downward trend of gun violence and a 55 percent decrease in confirmed shooting calls for service.
Corporal Richard White III of the Ohio County Sheriff’s Office, West Virginia:
In June 2017, dispatchers notified law enforcement and fire department agencies regarding several people who had flipped over their boats while kayaking and got caught in the swift current in Wheeling Creek. Corporal White arrived on the scene and waded into the heavy current, rescuing two females caught in the downstream. Corporal White was instrumental in preventing a possible tragic incident while putting himself in harm’s way. About a year earlier, a little boy had died after falling into the creek. Corporal White’s quick and selfless action helped ensure that those circumstances were not repeated.
Deputy Ned Nemeth of the Washoe County Sheriff’s Office, Nevada:
Deputy Nemeth has demonstrated active exceptional performance in field operations. As a full time K-9 handler, he works highway interdiction and has successfully reduced illegal operations in the past year along the I-80 corridor, including seizing 206 pounds of illegal marijuana, 359.42 grams of methamphetamine, and 43 contraband prescription opioid pain pills. Deputy Nemeth is known for providing high quality information about his interstate contacts to other agencies across the country. His efforts as a part of the HIDTA task force in northern Nevada not only have positive effects on his own community but also make meaningful contributions to other jurisdictions working to disrupt and dismantle organized drug trafficking operations nationwide.
Detective Thomas Curley of the Wilmington Police Department, Delaware:
Over the past 14 years, Wilmington Detective Thomas Curley has provided outstanding efforts in conducting criminal investigations to protect the people of Wilmington from gangs and violent crime, including the first successful illegal gang prosecution in the State of Delaware, which was later upheld by the Delaware Supreme Court. He possesses the ability to seek out and successfully talk with witnesses to develop leads and works tirelessly coordinating complex investigations. Detective Curley is dedicated to his job and strives for justice for the victims of violent crimes.
Officers Jeremiah Beason, Patrick Burke, Monty Fetherston, and Steve Morris, Jr., of the Las Vegas Metropolitan Police Department, Nevada:
On October 2017, at approximately 10:05 p.m., a lone gunman fired into a crowd of 22,000 concertgoers attending a country music festival in Las Vegas, killing 58 innocent people and injuring more than 850. Las Vegas Metropolitan Officers Beason, Burke, Fetherston, and Morris were the first four first responders to react during this active shooter situation. These four officers rescued injured civilians, cleared the surrounding rooms near the shooter, and secured the perimeter. By running towards the danger, they saved countless lives.
Officers Jose Arriaga, Ruben Avalos, Carlos Escobar, Randy Jreisat, Arthur Meza, Ashley Mitchell, David Nick, Jr., Adrian Nuñez, Christina Salas, and Solly Samara of the Los Angeles Police Department, California:
In September 2017, the Los Angeles Police Department created the MacArthur Park Task Force to conduct uniform patrol in and around MacArthur Park and other surrounding areas. This team worked to restore order to the community around MacArthur Park by applying constant law enforcement and community involvement to the area to combat all crime and quality of life issues. These ten officers made 1,125 arrests in 32 weeks, issued 980 citations and offered services to hundreds of individuals. Their work is directly responsible for a 40 percent reduction of Part 1 crimes and a 46 percent reduction of violent crimes in the zone. These 10 officers helped transform this park and its surrounding neighborhood from its former blight, turning it into a clean, beautiful park.
Justice Department Announces Fourth Settlement Protecting U.S. Workers from DiscriminationRead the Press Release
The Justice Department today reached a settlement agreement with Palmetto Beach Hospitality LLC (Palmetto), a company that provides housekeeping services to hotels in the Myrtle Beach, South Carolina area. The agreement resolves the Department’s investigation into whether Palmetto unlawfully denied employment to qualified and available U.S. workers because it preferred to hire temporary foreign workers with H-2B visas. It is the fourth settlement under the Civil Rights Division’s Protecting U.S. Workers Initiative, which is aimed at targeting, investigating, and taking enforcement actions against companies that discriminate against U.S. workers in favor of temporary visa workers.
The Department’s investigation determined that Palmetto failed to consider applications from qualified U.S. workers for its housekeeper positions, even though employers are required to recruit and hire available and qualified U.S. workers before they receive permission to hire temporary foreign workers under the H-2B visa program. After ignoring applications from U.S. workers, Palmetto represented to the U.S. Department of Labor (DOL) that it could not find qualified U.S. workers and obtained authorization to employ temporary visa workers.
“The Department of Justice will fight to ensure that U.S. workers are not denied jobs because an employer has a discriminatory preference for hiring temporary visa workers,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “I commend Palmetto for its cooperation with the Department’s investigation, and its agreement to engage in domestic recruitment efforts far surpassing the minimal recruiting requirements to participate in the H-2B visa worker program.”
Failing to consider or hire qualified U.S. workers based on their citizenship status violates the anti-discrimination provision of the Immigration and Nationality Act (INA), regardless of whether an employer has complied with other rules governing the use of temporary employment-based visa programs.
Under the settlement, Palmetto must engage in several types of enhanced recruiting and job advertising efforts to attract qualified U.S. workers, far beyond those required by the H-2B visa rules. Palmetto also must set aside $35,000 to pay any wages lost by U.S. workers whose applications it improperly rejected or ignored, pay $42,000 in civil penalties to the United States, and be subject to departmental monitoring.
Under the Protecting U.S. Workers Initiative, the Civil Rights Division has opened dozens of investigations, filed one lawsuit, and reached settlement agreements with four employers. Since the Initiative’s inception, employers have agreed to pay or have distributed over $320,000 in back pay to affected U.S. workers. The Division has also increased its collaboration with other federal agencies, including a new formalized partnership with DOL to combat discrimination and abuse by employers using foreign visa workers.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
More information on how employers can avoid unlawful citizenship status discrimination is available here. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to: discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Great Falls Man Sentenced for Brandishing a FirearmRead the Press Release
HELENA - The United States Attorney’s Office announced today that 29-year-old Branden Miesmer of Great Falls was sentenced to 120 months in prison, 5 years of supervised release, and a $100 special assessment, to run consecutive to Miesmer’s state conviction for deliberate homicide. Additionally, the defendant received $1,000 in fines for contempt of court. Senior U.S. District Judge Charles C. Lovell presided over the hearing.
During the early morning hours of September 7, 2015, after committing a murder in Great Falls, Miesmer fled in a car reaching speeds of more than 110 mph on the interstate just north of Helena. Officers pursued Miesmer, but lost sight of his car. They found Miesmer’s car stopped next to another car at the intersection of Lincoln Road and Hauser Dam Road. Miesmer was removing people from a smaller station wagon located next to his car. Miesmer then quickly got in the new car and drove north.
According to the driver of the carjacked vehicle, he had stopped at the intersection when Miesmer pulled up, got out of his car, and approached the driver’s side door with a black semi-automatic pistol. Miesmer pointed the gun at the driver’s face and demanded that he get out of the car. Miesmer pulled the car door open and yanked the driver out of the car while the driver yelled for his kids to get out. The defendant later acknowledged his use of the firearm to the police in order to obtain the car.
The case was prosecuted by Assistant U.S. Attorney Jessica Betley and investigated by the Federal Bureau of Investigation, the Great Falls Police Department, and the Helena Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Former St. Bernard Parish Correctional Officer Pleads Guilty to Violating the Civil Rights of an Inmate Resulting in Her DeathRead the Press Release
Acting Assistant Attorney General John Gore and U.S. Attorney Peter G. Strasser today announced that former St. Bernard Parish correctional officer Timothy Williams pled guilty to violating the civil rights of inmate Nimali Henry, who died in the St. Bernard Parish Prison on April 1, 2014.
In pleading guilty, Williams admitted that Ms. Henry died as a result of his intentional deprivation of her constitutional right to be free from a correctional officer’s deliberate indifference to her serious medical needs. Williams acknowledged that he willfully disregarded a substantial risk of serious harm to Henry’s health and safety by failing to take reasonable measures to address her medical conditions.
“Williams deliberately deprived the victim of necessary medical attention, resulting in her death,” said Acting Assistant Attorney General John Gore. “Williams admittedly violated federal law and his sworn duty as a corrections officer to adequately care for and protect the constitutional rights of an inmate under his supervision.”
“Today’s conviction demonstrates DOJ’s commitment to hold accountable those individuals entrusted to protecting the rights of all citizens, including inmates,” said U.S. Attorney Strasser. “It is extremely important that our office, along with our law enforcement partners, continue to vigorously protect the rights of all citizens within the Eastern District and seek justice for those subjugated by civil rights violations.”
Sentencing is set before the Honorable Ivan L.R. Lemelle on Jan. 16, 2019. Williams faces a sentence of up to life imprisonment.
The FBI investigated this matter. The case is being prosecuted by Assistant U.S. Attorneys Tracey N. Knight and Chandra Menon and Trial Attorney Christine M. Siscaretti of the Civil Rights Division’s Criminal Section.
Former Indianapolis Police Officer Sentenced to Prison for Excessive Force Against an Arrestee at Veterans Affairs Medical CenterRead the Press Release
Michael Kaim, 28, a former police officer with the Veterans Affairs Medical Center Police Department, was sentenced today in U.S. District Court in Indianapolis, Indiana, for deprivation of civil rights, announced John Gore, Acting Assistant Attorney General for the Civil Rights Division; United States Attorney Josh J. Minkler of the Southern District of Indiana; and Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. Kaim was sentenced to serve 12 months in prison and pay a fine of $1,000.
According to the defendant’s plea agreement and admissions in court, the defendant shoved and repeatedly punched a patient-employee whom he was in the process of arresting outside of the Richard L. Roudebush Veterans Affairs Medical Center.
“Any law enforcement official who uses excessive force against an arrestee violates the Constitution, which is designed to protect the civil rights of all individuals, including veterans who sacrifice their lives for our freedoms,” said Acting Assistant Attorney General John Gore. “The Department of Justice will continue to aggressively prosecute officer misconduct.”
“When excessive force is used by police officers against members of our community, particularly our veterans, it erodes confidence in our justice system and does irreparable damage to public confidence,” said U.S. Attorney Josh Minkler. “Anyone who violates the civil rights of others will be held accountable.”
"The public has a right to expect better from their law enforcement officers, especially those who work with our military veterans - men and women who have bravely served our country," said Grant Mendenhall, Special Agent in Charge of the FBI's Indianapolis Division. "The FBI will continue to hold accountable members of the law enforcement community who violate the civil rights of individuals they should be protecting."
This case was investigated by the FBI. The case was prosecuted by Trial Attorney Anita T. Channapati of the Justice Department’s Civil Rights Division with assistance from the United States Attorney’s Office in Indianapolis.
Rhode Island Woman Convicted at Trial Following Her Involvement in International Lottery Fraud SchemeRead the Press Release
On Sept. 14, a federal jury in North Dakota convicted a Providence, Rhode Island woman after a week-long trial, on all 15 counts for her participation in a Jamaican lottery fraud scheme, which has affected about 100 identified victims with reported losses totaling more than $6.7 million.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Christopher Myers of the District of North Dakota, and Special Agent in Charge Jill Sanborn of FBI Minneapolis Division, made the announcement.
Melinda Bulgin, 28, was convicted on conspiracy and substantive mail fraud and wire fraud charges, as well as one count of money laundering conspiracy. According to the evidence presented at trial, Bulgin worked with members of a Jamaican lottery fraud conspiracy in the United States and Jamaica, and had multiple roles in the scheme. The scheme’s conspirators located in Jamaica purchased lists containing information about U.S. citizens, and contacted them over the phone. They told victims they had won large cash prizes and cars, but would need to pay taxes and fees in order to receive the prize. The scammers deliberately targeted victims over the age of 55. Victims were first courted with the lure of prizes, and additional scam callers would then also identify themselves as FBI, IRS or other trusted authorities that falsely confirmed that the prize winnings were real. Some victims lost their savings, their life insurance and their homes before running out of money and turning to public or family assistance. Victims lost anywhere from $200 to more than $100,000.
Evidence presented at trial further showed that Bulgin participated in the scheme via several roles - by buying the names of future victims to call, by collecting checks and cash from victims at her home address, and via wire transfers victims sent to her bank accounts. She also sent fraudulent mailings, such as letters and photos of the fake checks, to victims to convince them of their prize. She was caught while carrying $14,800 to Jamaica to share with her conspirators, money from an elderly woman in Arizona, who testified that she wired the money to Bulgin as advance fees for a large prize she had been told she won.
“Melinda Bulgin and her coconspirators deliberately targeted senior citizens as part of a lottery fraud scheme that affected dozens of victims, some of whom lost their life savings, life insurance, and even their homes,” said Assistant Attorney General Benczkowski. “The conviction in this case is the result of the hard work and determination of our domestic and foreign law enforcement partners, along with the prosecutors in the District of North Dakota and Criminal Division—and it demonstrates our firm commitment to stopping those who exploit senior citizens and other vulnerable populations.”
“This case involves a unique kind of victimization,” said U.S. Attorney Myers. “It is an assault of victims’ trust and dreams, in addition to their pocket books. Victims are targeted because their age or personal circumstances make them particularly vulnerable; the resulting harm is financial, psychological, and physical. Until recently, these scammers operated with impunity. We are helping to find them and hold them accountable for their crimes.”
“The bedrock of the FBI lies in protecting our most vulnerable, including older Americans who often find themselves on fixed incomes and tight budgets,” said FBI Special Agent in Charge Sanborn. “While nothing can fully replace the victimization felt by those who fell prey to this scheme, we hope that this conviction ensures the defendants will never be able to harm anyone again. I’m grateful to all of our law enforcement partners who worked beyond borders to ensure the defendants could not hide and that justice was done.”
The government’s case included testimony by an FBI case agent who traced victim money from around the country to Bulgin, several American and Jamaican cooperators, one of whom was extradited from Jamaica, multiple banks, Fedex, and remitters such as Western Union. A Jamaican law officer who questioned Bulgin when she landed in Jamaica from the United States with $14,800 in cash also testified at trial. In addition, multiple victims testified to the financial devastation, fear and emotional toll caused by the scammers; several victims who testified had sent money directly to Bulgin, via cash, check or wire, totaling over $100,000.
In addition to Bulgin, 14 other defendants from Jamaica and the United States were charged in the same indictment, many of whom have pleaded guilty. The FBI led investigation of Bulgin and others has led to the successful prosecution of more than 30 defendants in related cases and the extradition of 14 Jamaican nationals.
U.S. v. Melinda Bulgin, et al. arises from the investigation of Sanjay Williams, Lavrick Willocks and others who led and operated criminal advance fee lottery telemarketing fraud organizations, with operations in the United States, Jamaica, Canada, United Kingdom, Israel, Costa Rica and elsewhere. The Jamaican lottery fraud scheme is listed in the United States as a Top International Criminal Organization Target (TICOT). Nationwide, the number of Jamaican Lottery Fraud victims is in the millions, with some estimates of annual losses in excess of $1 billion. The lottery scam victims in the United States are not the only victims of Melinda Bulgin’s crimes. Top Jamaican law enforcement officials emphasize that lottery scamming has directly led to a dramatic increase in violent crime – including murder, shootings, and extortion - in Jamaica, as rival scammers battle one another over the names of potential victims and profits.
The FBI, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, and a host of state and local authorities throughout the United States, along with foreign enforcement authorities, including Jamaican Constabulary Force (JCF) Major Organised Crime and Anti-Corruption Agency (MOCA) and Jamaican Operations Linked to Telemarketing (JOLT) task force, have assisted in the investigation and the extradition of the defendants in the indictment. The Justice Department’s Office of International Affairs provided significant assistance in the extraditions. Trial Attorney Leila E. Babaeva of the Criminal Division Fraud Section, and Assistant U.S. Attorneys Clare Hochhalter, James Patrick Thomas, Nick Chase and Jonathan O’Konek of the District of North Dakota are prosecuting the case.
Illegal Alien MS-13 Member Convicted of Assaulting a Federal Witness, Drug Distribution, Immigration and Firearms ViolationsRead the Press Release
An illegal alien and MS-13 gang member from El Salvador was convicted today by a federal jury of using physical force to tamper with a witness; being an illegal alien in possession of a firearm; illegally re-entering the United States after previously being deported; multiple counts of cocaine distribution; and multiple counts of other firearms violations, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran of the Middle District of Tennessee.
Gerson Serrano-Ramirez, aka “Frijole,” 31, was indicted in August 2017 and convicted today after a three-day jury trial in U.S. District Court in Nashville, Tennessee.
“MS-13 is one of the most violent and dangerous gangs in America, and the conduct that occurred in this case is further evidence of the gang’s ruthlessness,” said Assistant Attorney General Benczkowski. “The Department of Justice and our law enforcement colleagues are committed to combatting MS-13 here in the Middle District of Tennessee and in every other jurisdiction where the gang operates. We will seek out members of MS-13 and other violent gangs wherever they may be and prosecute them to the fullest extent of the law.”
“The jury’s verdict will ensure that another violent criminal alien will be removed from our community for a very long period of time and he will have little, if any chance of ever inflicting harm outside of his new home - a federal penitentiary,” said U.S. Attorney Cochran. “I commend the excellent work of our law enforcement partners and our prosecutors and appreciate the jury’s time and attention during this trial.”
According to evidence and testimony presented at trial, in July 2017, the activities of Serrano-Ramirez and other MS-13 gang members were disrupting the normal operation and business of a local nightclub and this was brought to the attention of Serrano-Ramirez by an acquaintance, with a request to tone down their disruptive behavior. Serrano-Ramirez later invited the individual to his home in the Antioch, Tennessee area, where he subsequently assaulted him by pointing an assault rifle at him; strangling him with the rifle strap; spraying bleach into his eyes and then attempted to suffocate him by placing a plastic bag over his head. Finally, while clamping the individual’s finger with a pair of pliers and holding an assault rifle on him, Serrano-Ramirez told the individual that if he told anyone about the assault that he would kill him and his mother.
Evidence introduced during the trial also included video of the assault which was captured on an in-home security system at Serrano-Ramirez’ house and videos of him packaging and selling cocaine from the residence. This video was discovered and seized during the subsequent execution of a search warrant. Also seized during this search was an AK-47 assault rifle, multiple rifle magazines, 582 rounds of ammunition, body armor and a small amount of cocaine and marijuana.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Metropolitan Nashville Police Department Gang Unit. Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Ahmed Safeeullah of the Middle District of Tennessee.
Defendant Pleads Guilty in Connection with Ohio Labor Trafficking Scheme Involving Immigrant MinorsRead the Press Release
Pablo Duran Ramirez, 50, pleaded guilty today in U.S. District Court in Cleveland, Ohio, to encouraging the illegal entry of Guatemalan nationals, including unaccompanied minors, into the United States for financial gain, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Justin E. Herdman of the Northern District of Ohio, and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division. Duran Ramirez is the fourth defendant to plead guilty in connection with a labor trafficking scheme that forced Guatemalan minors to work at egg farms in central Ohio.
According to the defendant’s plea agreement and admissions in court, the defendant, through his company, Haba Corporate Services, contracted to provide labor to Trillium Farms, knowing that the workers were unlawfully present in the United States. He further admitted to knowing that some of the workers were unaccompanied minors who had been coerced or threatened to enter the United States and then housed in an isolated trailer park in Marion, Ohio. In 2013 and 2014, Trillim Farms paid the defendant’s company approximately $6 million for its labor services.
“Motivated by greed, the defendant violated the immigration laws and contributed to the exploitation of vulnerable children who lacked immigration status,” said Acting Assisting Attorney General Gore. “The Department of Justice will use its resources to prosecute individuals who unlawfully victimize others for their own monetary profit.”
“This defendant profited off the desperation of children and their parents and other relatives,” said U.S. Attorney Justin Herdman for the Northern District of Ohio. “He knew some of the workers he delivered to Trillium Farms were underage, in the country illegally and were threatened or coerced. We will continue to work to eliminate human trafficking in all its forms.”
“This defendant, in conspiracy with three other previously convicted individuals, coerced and assisted individuals to enter the United States illegally, many of them children, forcing them to live in deplorable conditions and work for little to no wages,” said Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division. “These reprehensible actions are unacceptable and rest assured the FBI will continue to work with our partners to bring to justice those who engage in human trafficking.”
Duran Ramirez faces a sentence of up to 10 years in prison. His sentencing date has been set for Jan. 7, 2019.
Three other defendants—Aroldo Castillo-Serrano, of Guatemala, Ana Angelica Pedro-Juan, of Guatemala, and Conrado Salgado-Soto, of Mexico—previously pleaded guilty for their roles in the same labor trafficking scheme. Castillo-Serrano, the lead smuggler and primary enforcer, was sentenced to 188 months in prison; Pedro-Juan, who oversaw the victims in Ohio, was sentenced to 120 months; and Salgado-Soto, a subcontractor hired by Duran Ramirez, was sentenced to 51 months.
Those defendants admitted to recruiting workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States. The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and work at physically demanding jobs at Trillium Farms for up to 12 hours a day. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens. During their sentencing, Senior United States District Judge James G. Carr found that they had threatened workers with physical harm and withheld their paychecks in order to compel them to work. Eight minors and two adults were identified as victims of the scheme.
Three additional defendants, including Duran Ramirez’s son, pleaded guilty for their roles in encouraging the workers’ illegal entry into the United States.
This case is being investigated by the FBI’s Cleveland Office, Mansfield Resident Agency and the Department of Homeland Security. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Chelsea Rice.
Former Biscayne Park Chief of Police Pleads Guilty to Conspiring with Other Officers to Violate Victims’ Civil Rights by Making False ArrestsRead the Press Release
Former Village of Biscayne Park Chief of Police, Raimundo Atesiano, pleaded guilty in federal court to conspiring with subordinate officers to violate individuals’ civil rights by making false arrests, announced Acting Assistant Attorney General John Gore for the Justice Department’s Civil Rights Division, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, FBI Miami Field Office, Katherine Fernandez Rundle, Miami-Dade State Attorney, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE).
According to documents filed in connection with the plea entered today, Atesiano was acting under color of law as chief of police when on three separate occasions he ordered officers under his command to falsely arrest and charge individuals with unsolved burglaries. In court filings related to the plea, Atesiano admitted that on one occasion he instructed an officer to falsely arrest and charge an individual for several vehicle burglaries based upon what Atesiano knew were false confessions. According to the documents, Atesiano intentionally encouraged officers to arrest individuals without a legal basis in order to have arrests effectuated for all reported burglaries, which created a fictitious 100% clearance rate for that category of crime.
Guillermo Ravelo, a former Biscayne Park Officer who is named in the superseding indictment, previously entered a guilty plea for his role in the conspiracy with Atesiano to violate individuals’ civil rights. Charlie Dayoub and Raul Fernandez, former Biscayne Park officers who also are named in the superseding indictment, previously entered guilty pleas for their roles in effecting false arrests.
The Court set the sentencing date for Atesiano on Nov. 27. Guillermo Ravelo is scheduled to be sentenced on Oct. 4, and Charlie Dayoub and Raul Fernandez are scheduled to be sentenced on Oct. 16.
“The right to be free from false arrests is fundamental to our Constitution and system of justice,” said Acting Assistant Attorney General John Gore. “Law enforcement officers who abuse their authority and deny any individual this right will be held accountable. As the Chief of Police, Defendant Atesiano was trusted by his community to lead their police officers by example; he has failed his community and the officers of Biscayne Park.”
“The vast majority of law enforcement officers across the nation serve our communities with honor and integrity,” stated U.S. Attorney Benjamin G. Greenberg. “We will not allow the minority of officers who cast aside their oaths to tarnish the reputation of those who protect us all. Instead, as evidenced today with former Chief Raimundo Atesiano’s guilty plea, we will continue to hold them accountable in federal court for criminal acts that threaten our constitutional guarantees.”
“Law enforcement officers are entrusted with a great deal of responsibility and authority and therefore must be held to a high standard. Raimundo Atesiano failed to meet this standard by abusing his authority and breaking laws,” said Scott A. Rottman, Acting Special Agent in Charge, FBI Miami. "Unfortunately, the actions of a very few dishonest officers, such as Atesiano and his co-conspirators, undercut the public’s trust and they must be rooted out. His actions do not represent the overwhelming majority law enforcement officers who are diligent, honorable professionals who are worthy of that trust."
“It is a deliberate injustice to intentionally charge and arrest an innocent man. Police Chief Raimundo Atesiano’s actions were intended to give his community a false sense of security and were a betrayal of his oath to protect the residents of Biscayne Park and all the people of Miami-Dade County,” commented State Attorney Katherine Fernandez Rundle. “I applaud the combined efforts of our law enforcement partnership to end this calculated abuse of power.”
“Law enforcement officers must be held to the highest moral standards and when that trust is broken, FDLE will work aggressively to investigate and find the truth ensuring all citizens are treated justly,” said FDLE Miami Special Agent in Charge Troy Walker.
The case was investigated by the FBI, the FBI Miami Area Corruption Task Force and the FDLE, with assistance from the Miami-Dade State Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice, and Assistant State Attorney Trent Reichling.
16 MS-13 Gang Members Indicted for Assault and Drug TraffickingRead the Press Release
A federal grand jury in Fresno, California returned a five-count indictment yesterday against 16 members and associates of La Mara Salvatrucha (MS-13), Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney McGregor W. Scott for the Eastern District of California announced.
The defendants are charged with assault with a dangerous weapon in aid of racketeering (two counts); conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine, and marijuana; and being an alien in possession of a firearm (two counts). The defendants are:
- Denis Barrera-Palma, 24, of Mendota, California, charged with assault with a dangerous weapon (a pipe) and drug conspiracy;
- Mario Alexander Garcia, 31, of Mendota, charged with drug conspiracy;
- Francisco Lizano, 24, of Mendota, charged with drug conspiracy and alien in possession of a firearm;
- Jefferson Guevara, 19, of Los Angeles, California, charged with drug conspiracy;
- Ever Membreno, 18, of Mendota, charged with drug conspiracy;
- Edgar Torres-Amador, 21, of Mendota, charged with assault with a dangerous weapon (a pipe);
- Lorenzo Amador, 20, of Mendota, charged with assault with a dangerous weapon (a stabbing instrument) and drug conspiracy;
- Jose Wilson Navarette-Mendez, 21, of Mendota, charged with drug conspiracy;
- Denis Alfaro-Torres, 22, of Mendota, charged with drug conspiracy;
- Santos Bonilla, 26, of Mendota, charged with drug conspiracy;
- Henry Bonilla, 18, of Mendota, charged with drug conspiracy;
- Marvin Villegas-Segovia, 21, of Mendota, charged with drug conspiracy;
- Christian Hidalgo, 21, of Mendota, charged with drug conspiracy;
- Brenda Yajaria Morales, 25 of Mendota, charged with drug conspiracy and alien in possession of a firearm;
- Claudia Lizaola, 39, of San Bernardino, California, charged with drug conspiracy; and
- Oscar Reyes, 29 of Mendota, charged with drug conspiracy.
According to the complaint and indictment, the defendants were allegedly members of MS-13 operating in Mendota and Los Angeles. MS-13 is a violent criminal street gang that engages in racketeering activity, including murder, kidnapping, extortion, and drug trafficking. Its members span the nation and are active internationally as well. The charges allege that in May 2018, Denis Barrera-Palma and Edgar Torres-Amador assaulted another individual with a dangerous weapon in furtherance of MS-13 and in order to gain entrance to, or maintain or increase their status within, MS-13. They further allege that in August 2018, Lorenzo Amador assaulted another individual with a dangerous weapon in furtherance of MS-13 and in order to gain entrance to, or maintain or increase his status within, MS-13. The charges also allege that all defendants, except Amador-Torres, engaged in a conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine and marijuana.
These charges follow initial charges filed via complaint in August 2018, after which most of the defendants were arrested on Aug. 30. As set forth in the complaint, MS-13 allegedly engaged in street level drug sales to fund the gang’s various criminal activities. The gang allegedly would acquire drugs, parse them out among members with a directive that they sell the drugs within a certain period of time and return all proceeds to the gang. Those proceeds would then allegedly be used for a variety of purposes, including funding trips to obtain drugs or commit acts of violence, putting money on the books of incarcerated MS-13 members, sending money to MS-13 members in El Salvador, and obtaining more narcotics to sell. Among the alleged assaults gang members engaged in were the May 2018 pipe attack in front of an elementary school in Mendota and an Aug. 12 stabbing in Mendota. Both alleged events involved MS-13 members assaulting individuals believed to be members of a rival gang to MS-13.
A number of the defendants are also facing charges in Fresno County Superior Court, including Denis Barrera-Palma and Ever Membreno, who are charged with conspiracy to commit murder with a gang enhancement.
The investigation was conducted by the California Department of Justice and California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). The CHP Special Operations Unit is a collaborative investigative effort between the California Department of Justice and California Highway Patrol that provides statewide enforcement to combat violent career criminals, gangs, and organized crime groups, along with intrastate drug traffickers. Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section, along with Assistant U.S. Attorneys Ross Pearson, Angela Scott, Kathleen Servatius and Kimberly Sanchez of the Eastern District of California are prosecuting this and related cases. Senior Fresno County Deputy District Attorney Dennis Lewis is prosecuting related cases in Fresno County Superior Court.
All defendants, except Lorenzo Amador are in custody. Amador is at large and a warrant for his arrest is outstanding.
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.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Wisconsin Man in State Custody Indicted for Hate Crime by Threatening Jewish Community Center in Whitefish Bay, WisconsinRead the Press Release
The Justice Department today announced that a federal grand jury in Wisconsin returned an indictment charging Chadwick Grubbs, 33, with obstruction and attempted obstruction of the free exercise of religious beliefs, by mailing threats on three separate dates in May to the Harry and Rose Samson Family Jewish Community Center in Whitefish Bay. In addition to three religious obstruction charges, the indictment also charges Grubbs with three counts of mailing threatening communications and one count of threatening to injure and destroy property by fire and an explosive.
The defendant is currently being held in state custody on separate cases.
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
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.
Statement by Attorney General Sessions on the Election Security Executive OrderRead the Press Release
Attorney General Sessions today issued the following statement on the Election Security Executive Order:
“The American people will not tolerate attempts to undermine the integrity of our electoral process—especially by foreign countries and other bad actors. President Trump is committed to taking definitive action to prevent anyone—foreign or domestic—from illegally interfering in our elections, and the Department of Justice is proud to support him in this mission.
“Pursuant to the President’s executive order, the Department will work with our partners at the State Department, Treasury Department, and Department of Homeland Security, in order to identify enemies of our country who put our electoral integrity at risk. Once we do, we will take action to bring them to justice.
“I applaud President Trump’s leadership on this issue, and I want to echo the clear message he has sent today: we will not accept attacks on our free elections and we will do whatever it takes to protect them. This is what the American people demand, and this is what they deserve.”
Indiana Man Indicted for Conspiracy to Receive and Distribute Child PornographyRead the Press Release
A federal grand jury in Alexandria, Virginia returned an indictment today charging an Evansville, Indiana man with one count of conspiracy to receive and distribute child pornography, one count of distribution of child pornography, and one count of receipt of child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office and Chief Michael L. Brown of the Alexandria Police Department, made the announcement.
Bradley Robert Segert, 30, is charged with one count of conspiracy to receive and distribute child pornography, one count of distribution of child pornography, and one count of receipt of child pornography. According to the indictment, between January 2015 and August 2015, Segert allegedly administered a private chat group on Kik Messenger, a mobile messaging application, dedicated to sharing and trading images and videos of child pornography. During this period, Segert and another administrator living within the Eastern District of Virginia allegedly required Kik users interested in becoming members of the group to send them images and videos of child pornography in order to gain admission. Additionally, the indictment alleges that Segert knowingly distributed and received child pornography in interstate commerce, including to and from the Eastern District of Virginia.
FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, specifically the Alexandria Police Department, is investigating the case. The Task Force is comprised of agents of the FBI, U.S. Marshals, and detectives from the Prince William County Police, Fairfax County Police, Loudoun County Sheriff’s Office, Metropolitan Police, Alexandria City Police, Arlington County Police, Leesburg Police, Virginia State Police and the Offices of Inspector General of several federal agencies. Trial Attorneys James E. Burke IV, Gwendelynn Bills and William Clayman of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.
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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Kentucky Police Officer Sentenced for Wrongful ArrestRead the Press Release
William Dukes, Jr., a former sergeant with the Providence, Kentucky, Police Department, was sentenced today to 42 months in federal prison and three years’ supervised release for willfully depriving a Kentucky citizen of his constitutional rights under color of law, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division and U.S. Attorney Russell Coleman for the Western District of Kentucky.
The jury found that Dukes willfully violated the Constitution by arresting the victim, while knowing that he did not have probable cause to believe that the victim had committed any crime. The evidence presented at trial established that after the victim called the authorities seeking to file a complaint about an earlier interaction with Dukes, he wrongfully arrested the victim.
The jury heard evidence presented in court that when the victim called the Providence Police Department to complain about Dukes, Dukes responded by threatening to arrest him if he called back again. Still determined to file a complaint, the victim then called the local sheriff’s office and the Kentucky State Police. When Dukes became aware of these additional calls, he drove to the victim’s home in the middle of the night, without a warrant, to arrest him.
Upon arriving at the victim’s home after 1 a.m., Dukes attempted to arrest the victim based solely on the phone calls he had made complaining about Dukes. When the victim insisted he had done nothing wrong and retreated into his home, Dukes entered the victim’s home without a warrant. Dukes then tased the victim, sprayed him in the face with pepper spray, struck him repeatedly with a police baton, and punched him in the face, breaking the victim’s nose. Next, Dukes handcuffed the victim and charged him with four crimes, including a charge of property damage because blood from the victim’s broken nose got onto Dukes’s police uniform.
The jury convicted Dukes of willfully violating the victim’s constitutional rights, and found that the offense involved the use of a dangerous weapon or resulted in bodily injury.
“Police officers have a duty to protect the rights of members of their communities and safeguard them from harm or injury,” said Acting Assistant Attorney General John Gore. “Dukes abused his authority as a law enforcement officer by illegally arresting his victim and also by inflicting unwarranted physical harm, and the Justice Department held him responsible.”
“Kentucky lawmen and women are among the finest in the nation,” said U.S. Attorney Russell Coleman “But when they cross a clear line, as did Mr. Dukes, they will be held accountable like any other citizen of our Commonwealth.”
This case was investigated by the Louisville Division of the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Seth Hancock of the Western District of Kentucky and Trial Attorney Zachary Dembo of the Criminal Section of the Civil Rights Division.
Former Arkansas State Representative, President of College and Consultant Sentenced for Bribery SchemeRead the Press Release
A consultant along with his co-conspirators, the President of an Arkansas college and a former Arkansas State Representative, were sentenced in the past week for their roles in a bribery scheme in which state funds were directed to non-profit entities in exchange for kickbacks, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Duane “DAK” Kees for the Western District of Arkansas.
Randell G. Shelton Jr., 39, of Kemp, Texas, a consultant, was sentenced on Sept. 6 by U.S. District Judge Timothy L. Brooks to serve 72 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $660,698 and to forfeit $664,000. Shelton was convicted by a federal jury on May 3 of 12 counts, including conspiracy and honest services wire and mail fraud. Also convicted in the scheme was former Arkansas State Senator Jonathan E. Woods, 41, of Springdale, Arkansas, of 15 counts, including conspiracy, honest services wire and mail fraud, and money laundering.
Oren Paris III, 50, of Springdale, Arkansas, President of Ecclesia College, was sentenced yesterday to serve 36 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $621,500. Paris pleaded guilty before Judge Brooks to one count of honest services wire fraud on April 5.
Micah Neal, 43, of Springdale, Arkansas, a former Arkansas State Representative was sentenced today to three years probation including the first year to be served as home confinement and the second and third years to include 300 hours of community service. Neal was also ordered to pay restitution in the amount of $200,000 to the State of Arkansas and the Northwest Arkansas Economic Development District (NWAEDD). Neal previously pleaded guilty before Judge Brooks to one count of conspiracy to commit honest services fraud.
According to admissions made in his plea agreement, Neal served as an Arkansas State Representative from 2013 to 2017. Neal admitted, and evidence presented at trial for Woods and Shelton revealed, that between sometime in 2013 and January 2015, Neal conspired with Woods to use their official positions to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities in exchange for bribes. Specifically, Neal and Woods authorized and directed the NWAEDD, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. Pursuant to his plea agreement, Neal admitted that of the $600,000, he personally authorized and directed a total of $175,000 to the entities. In return for his official actions, Neal received approximately $38,000 in bribes from the two non-profit entities.
Neal was the fourth defendant involved in this bribery scheme to be sentenced within the past week. On Sept. 5, Woods was sentenced by Judge Brooks to serve 220 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $1,621,500 and to forfeit $1,097,005.
The FBI and IRS-Criminal Investigation investigated the case. Trial Attorney Sean F. Mulryne of the Criminal Division’s Public Integrity Section and First Assistant U.S. Attorney Kenneth Elser and Assistant U.S. Attorneys Kyra Jenner and Aaron Jennen of the Western District of Arkansas prosecuted the case.
First INTERPOL Washington Chief VisitsRead the Press Release
Current USNCB Director Wayne H. Salzgaber presents a token of appreciation to the first USNCB Chief, Kenneth S. Giannoules.On Monday, September 10th, Kenneth S. Giannoules, the first Chief of INTERPOL Washington, the U.S. National Central Bureau (USNCB), visited the agency. He led the USNCB from 1969 to 1974 when the organization was an office in the Department of the Treasury. Giannoules met with current Director Wayne H. Salzgaber, toured the facilities, and addressed INTERPOL Washington staff. A career Secret Service agent, Giannoules helped to protect U.S. Presidents Truman, Eisenhower, Kennedy, and Johnson.
Business Executive Pleads Guilty to Foreign Bribery Charge in Connection with Venezuelan Bribery SchemeRead the Press Release
A former manager of a U.S.-based logistics and freight forwarding company pleaded guilty to a foreign bribery charge today for his role in a scheme to corruptly secure contracts and contract extensions from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA). The guilty plea of the foreign official who was bribed was also unsealed today.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Juan Carlos Castillo Rincon (Castillo), 55, of Conroe, Texas, previously of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Nancy K. Johnson of the Southern District of Texas in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA). Castillo is scheduled to be sentenced on Feb. 21, 2019 by U.S. District Judge Gray H. Miller of the Southern District of Texas.
Judge Johnson also unsealed the guilty plea of Jose Orlando Camacho (Camacho), 46, of Miami, Florida, previously of Katy, Texas, the PDVSA official whom Castillo bribed. In July 2017, Camacho pleaded guilty under seal before Judge Miller to conspiracy to commit money laundering. Camacho is also scheduled to be sentenced on Feb. 21, 2019 by Judge Miller.
“Corruption undermines the rule of law, tilts the playing field away from law-abiding businesses, and exposes our financial system to the distorting effects of illicit cash flows,” said Assistant Attorney General Benczkowski. “The guilty pleas announced today are the latest in a series of actions arising out of an ongoing investigation of bribery at PDVSA. The Department will continue to combat corruption wherever we find it.”
“These guilty pleas reflect the hard work of agents and investigators and mark another step in the joint effort to combat foreign corruption,” said U.S. Attorney Patrick. “Our office will continue to prosecute those who bribe foreign officials or use our financial networks to launder the proceeds of these bribes.”
“Foreign bribery schemes like this pose a significant threat to the public trust and fair trade practices,” said HSI Houston Special Agent in Charge Dawson. “Today’s pleas are a step in the right direction, but we will continue to aggressively investigate individuals and corporations who violate the FCPA to ensure a fair and equal playing field for U.S. companies and consumers.”
Castillo was arrested in Miami on April 19, after a federal grand jury returned a five-count indictment against him. According to admissions made in connection with Castillo’s plea, beginning in or around 2011 and continuing through at least 2013, Castillo, a manager at a Houston-based logistics and freight forwarding company, conspired with others to bribe a PDVSA official in exchange for the official providing assistance in connection with the company’s business with PDVSA. In exchange for bribe payments, the PDVSA official assisted the company in obtaining PDVSA contracts, contract extensions and favorable contract terms; provided Castillo with inside information concerning the PDVSA bidding process; and supported the company in internal PDVSA meetings regarding purchasing decisions.
As part of his guilty plea, Camacho admitted that while employed by PDVSA or its wholly owned subsidiaries or affiliates, he accepted bribes from Castillo and the logistics and freight forwarding company for which Castillo was a manager in exchange for taking certain actions to assist the company in its business with PDVSA. Camacho also admitted that he conspired with Castillo to launder the proceeds of the bribery scheme.
As part of their plea agreements, both Castillo and Camacho have agreed to forfeit the proceeds of their criminal activity.
With Castillo’s plea today and the unsealing of Camacho’s plea, the Justice Department has announced charges against 18 individuals, 14 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. The HSI Houston Field Office is conducting the ongoing investigation, with assistance from HSI in Boston and from IRS Criminal Investigation. Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Cayman Islands’ Office of the Director of Public Prosecutions also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Attorney General Sessions Releases Memorandum on Litigation Guidelines for Nationwide Injunctions CasesRead the Press Release
Attorney General Jeff Sessions today issued litigation guidelines to aid Department of Justice attorneys involved in litigation challenging a federal government program, regulation, order, or law. The litigation guidelines will arm Department litigators handling these cases to present strong and consistent arguments in court against the issuance of nationwide injunctions and to reaffirm the existing constitutional and practical limitations on the authority of judges. The Department opposes the issuance of nationwide injunctions, consistent with the longstanding position of the Executive Branch under previous Administrations from both parties.
Nationwide injunctions—sometimes called “non-party injunctions”—prevent the federal government from enforcing an Executive Branch law or policy as to any person or organization, across the entire United States, regardless of whether such broad injunctions are necessary to provide relief to the specific plaintiffs involved in the case. In effect, they allow a single unelected federal district judge to set or veto a national policy. The increase in the number of nationwide injunctions in recent years, across Administrations of both parties, highlights the problem of judges acting outside of the bounds of their authority to grant relief to people or organizations that extends beyond the particulars of a specific case.
In releasing the litigation guidelines, Attorney General Sessions provided the following statement:
“Increasingly, we are seeing individual federal district judges go beyond the parties before the court to give injunctions or orders that block the entire federal government from enforcing a law or policy throughout the country. This kind of judicial activism did not happen a single time in our first 175 years as a nation, but it has become common in recent years. It has happened to the Trump administration 25 times in less than two years. This trend must stop. We have a government to run. The Constitution does not grant to a single district judge the power to veto executive branch actions with respect to parties not before the court. Nor does it provide the judiciary with authority to conduct oversight of or review policy of the executive branch. These abuses of judicial power are contrary to law, and with these new guidelines, this Department is going to continue to fight them.”
In a recent speech to the Eighth Circuit Judicial Conference, the Attorney General stressed that the use of nationwide injunctions threatens the rule of law. The Attorney General also emphasized how nationwide injunctions are a danger to our constitutional order in a March op-ed. The litigation guidelines published today will strengthen the Department’s efforts to help restore order, boundaries, and common sense to the U.S. judicial system.
Virginia Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
An Alexandria, Virginia man pleaded guilty today to one count of receipt of child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office and Chief Michael L. Brown of the Alexandria Police Department made the announcement.
Edward Thomas Parsons, 64, a former physical security specialist with the Department of Defense, pleaded guilty today before Senior U.S. District Judge Claude M. Hilton of the Eastern District of Virginia to receipt of child pornography. According to admissions made in connection with his plea, Parsons administered an online group chat on Kik Messenger, a mobile messaging application, dedicated to soliciting child pornography from other Kik users. Between January 2015 and August 2015, Parsons received and distributed images and videos of child pornography from this Kik group chat. In addition, through the course of its investigation, law enforcement seized Parsons’s personal desktop computer and cell phone and found hundreds of images and videos of child pornography on the devices.
Parsons is scheduled to be sentenced on Feb. 1, 2019.
FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, specifically the Alexandria Police Department, is investigating the case. The Task Force is comprised of agents of the FBI, U.S. Marshals, and detectives from the Prince William County Police, Fairfax County Police, Loudoun County Sheriff’s Office, Metropolitan Police, Alexandria City Police, Arlington County Police, Leesburg Police, Virginia State Police and the Offices of Inspector General of several federal agencies. Trial Attorneys James E. Burke IV, Gwendelynn Bills and William Clayman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tennessee Jail Supervisor Pleads Guilty to Making False Statements to the FBIRead the Press Release
The Justice Department announced that Gary Ola, 54, a sergeant at the Cheatham County Jail in Ashland City, Tennessee, pleaded guilty late yesterday to two counts of making false statements to FBI agents.
Ola was indicted on June 26 and the charges resulted from false statements about his knowledge of an incident in which another corrections officer used a Taser to stun a restrained detainee inside the Cheatham County Jail. The other corrections officer was charged in a separate indictment with two counts of deprivation of rights under color of law and two counts of obstruction of justice and his trial is set for early 2019. He is presumed innocent until proven guilty.
In his plea agreement, Ola admitted to making false statements during two separate interviews with federal agents investigating the Taser incident. In the first interview in August 2017, Ola falsely told agents with the FBI and the Tennessee Bureau of Investigation that, after he helped secure a detainee in a restraint chair in the Cheatham County Jail on Nov. 5, 2016, he walked away and did not see another corrections officer deploy a Taser and stun the detainee. In a second interview with the FBI in May 2018, the Ola stated that he did not see the corrections officer stun the detainee after officers placed the detainee in handcuffs. Ola admitted that he made these false statements because he feared retaliation if he reported that the corrections officer had used his Taser in violation of the jail’s policy and training.
Ola faces a maximum sentence of five years in prison and a $250,000 fine on each count. A sentencing date has yet to be scheduled.
This case was investigated by the FBI and the Tennessee Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Sara Beth Myers of the Middle District of Tennessee and Civil Rights Division Trial Attorney Michael J. Songer.
Russian National Who Operated Kelihos Botnet Pleads Guilty to Fraud, Conspiracy, Computer Crime and Identity Theft OffensesRead the Press Release
Peter Yuryevich Levashov, aka “Petr Levashov,” “Peter Severa,” “Petr Severa” and “Sergey Astakhov,” 38, of St. Petersburg, Russia, pleaded guilty today in U.S. District Court in Hartford, Connecticut, to offenses stemming from his operation of the Kelihos botnet, which he used to facilitate malicious activities including harvesting login credentials, distributing bulk spam e-mails, and installing ransomware and other malicious software.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Special Agent in Charge Brain C. Turner of the FBI’s New Haven Division made the announcement.
“For over two decades, Peter Levashov operated botnets which enabled him to harvest personal information from infected computers, disseminate spam, and distribute malware used to facilitate multiple scams,” said Assistant Attorney General Benczkowski. “We are grateful to Spanish authorities for his previous arrest and extradition. Today’s guilty plea demonstrates that the Department will collaborate with our international law enforcement partners to bring cybercriminals to justice, wherever they may be.”
“Mr. Levashov used the Kelihos botnet to distribute thousands of spam e-mails, harvest login credentials, and install malicious software on computers around the world,” said U.S. Attorney Durham. “He also participated in online forums on which stolen identities, credit card information and cybercrime tools were traded and sold. For years, Mr. Levashov lived quite comfortably while his criminal behavior disrupted the lives of thousands of computer users. Thanks to the collaborative work of the FBI and our partners in law enforcement, private industry and academia, a prolific cybercriminal has been neutralized, and has now admitted his guilt in a U.S. courtroom.”
“Today justice has finally arrived for Peter Levashov, who is perhaps better known in the cyber community by his online identity, Peter Severa,” said FBI Special Agent in Charge Turner. “The FBI’s New Haven Division has been engaged in a multiyear investigation of Levashov, with evidence gathered from a number of countries around the world. Today’s guilty plea should serve as an unequivocal reminder to all those who use the internet for illicit purposes: The FBI will pursue you regardless of what country you live in and the length of time it might take to secure your eventual arrest. As we move forward, no cyber criminal should rest easy. The men and women of the FBI’s New Haven Division, along with the members of our Cyber Task Force and our many other federal, state, local, and tribal partners across the state, will continue to employ the same dedication and hard work, which made this effort such a success, to the continued protection of the citizens of Connecticut and the nation as a whole.”
According to court documents and statements made in court, a botnet is a network of computers infected with malicious software that allows a third party to control the entire computer network without the knowledge or consent of the computer owners. Since the late 1990s until his arrest in April 2017, Levashov controlled and operated multiple botnets, including the Storm, Waledac and Kelihos botnets, to harvest personal information and means of identification (including email addresses, usernames and logins, and passwords) from infected computers. To further the scheme, Levashov disseminated spam and distributed other malware, such as banking Trojans and ransomware, and advertised the Kelihos botnet spam and malware services to others for purchase in order to enrich himself. Over the course of his criminal career, Levashov participated in and moderated various online criminal forums on which stolen identities and credit cards, malware and other criminal tools of cybercrime were traded and sold.
Spanish authorities arrested Levashov in Barcelona on April 7, 2017, based upon a criminal complaint and arrest warrant issued in the District of Connecticut. At the time of Levashov’s arrest, Kelihos infected at least 50,000 computers.
On April 10, 2017, the Justice Department announced that it had taken action to dismantle the Kelihos botnet.
On April 20, 2017, a grand jury in the District of Connecticut returned an indictment charging Levashov with multiple offenses related to this scheme. Levashov was extradited to the United States in February.
Levashov pleaded guilty before U.S. District Judge Robert N. Chatigny to one count of causing intentional damage to a protected computer, one count of conspiracy, one count of wire fraud and one count of aggravated identity theft.
Judge Chatigny scheduled sentencing for Sept. 6, 2019. Levashov is detained pending sentencing.
The FBI’s New Haven Division and Anchorage Division are investigating the case, with the assistance from the Spanish National Police. Senior Trial Attorney Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Vanessa Richards and David Huang of the District of Connecticut are prosecuting the case. The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service. The University of Alabama at Birmingham, ThreatStop, SpamHaus, Cisco, Cambridge University, and Cloudmark also provided invaluable assistance in the investigation and prosecution of Mr. Levashov.
New Jersey Man Pleads Guilty to Tax Evasion in Connection with Sale of Purportedly Original Caravaggio PaintingRead the Press Release
A New Jersey man pleaded guilty today to tax evasion in connection with over $1.2 million in income related to the proceeds of a sale of a purportedly original Caravaggio painting.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Matthew D. Line, Acting Special Agent in Charge of IRS Criminal Investigation’s (IRS-CI) Nashville Field Office and Special Agent in Charge Troy Sowers of the FBI’s Knoxville Field Office made the announcement.
Brian Gimelson, 48 of Lawrenceville, New Jersey, pleaded guilty to two counts of attempting to evade or defeat a tax before U.S. District Judge Tanya Walton Pratt of the Southern District of Indiana. He is scheduled to be sentenced on Feb. 1, 2019 by Judge Pratt.
According to admissions made in connection with his guilty plea, Gimelson earned a substantial income for his role in a transaction involving the sale of a purportedly original painting by the Italian painter Michelangelo Merisi, commonly known as Caravaggio titled David With the Head of Goliath (the Caravaggio Painting). Despite earning over $1.2 million in income on this transaction, Gimelson did not timely file income tax returns and he did not timely pay tax due and owing to the United States.
In order to conceal his income and evade the payment of his tax liabilities, Gimelson created a company, had his wife serve as managing member of the company, and used this company to facilitate the Caravaggio Painting transaction. Despite creating this company in his wife’s name, Gimelson admitted that he controlled the company and its bank accounts, including the fees Gimelson received for his role in the Caravaggio Painting transaction. Gimelson further admitted that he directed his wife to make frequent and substantial cash withdrawals on his behalf from company accounts, and Gimelson used company funds to purchase collectibles and precious metals, among other things.
The case is being investigated by IRS-CI’s Nashville Field Office and the FBI’s Knoxville Field Office. The case is being prosecuted by Trial Attorneys Danny Nguyen and Caitlin Cottingham of the Criminal Division’s Fraud Section.
Mississippi Officer Sentenced for Assault of Restrained Juvenile DetaineeRead the Press Release
Edward Gibson, a former officer at a Mississippi juvenile detention facility, was sentenced today in federal court to 24 months incarceration followed by three years supervised release for beating a shackled juvenile, announced Acting Assistant Attorney General John Gore for the Justice Department’s Civil Rights Division, U.S. Attorney William C. Lamar of the Northern District of Mississippi, and Christopher Freeze, Special Agent in Charge of the FBI, Jackson Field Division.
Gibson, 28, was working as an officer at the Leflore County Juvenile Detention Center on June 16, 2016, when he assaulted a teenage victim who was in handcuffs and leg shackles. Gibson threw an electric fan at the victim, hitting him in the upper chest. Gibson then punched the victim multiple times before being pulled off by two other officers. The other officers had to step in two more times to prevent Gibson from further assaulting the victim, who was in restraints throughout the entire incident.
According to admissions made by Gibson during the plea hearing, the victim was never physically aggressive toward Gibson, and Gibson assaulted him only because the victim made statements that angered him. Gibson weighed approximately 315 pounds; the victim weighed approximately 130 pounds.
Gibson’s supervisor, Dianne Williams, was sentenced on Aug. 23 to time served for helping cover up the assault. She had pleaded guilty to misprision of a felony, admitting that she knew the assault had occurred, did not inform a responsible authority, and helped cover it up by writing a false report.
“Detention officers have an important duty to protect juveniles in their care from abuse or bodily harm,” said Acting Assistant Attorney General John Gore. “This Department will continue to prosecute detention officers who engage in illegal acts of violence or attempts to obstruct justice, in order to better protect the civil rights of detained individuals.”
“We are morally, constitutionally, and legally obligated to treat people humanely and we will continue to enforce the laws protecting the civil rights of all individuals,” said U.S. Attorney William C. Lamar for the Northern District of Mississippi.
“Deprivation of civil rights by a public official compromises the public’s trust,” said Special Agent in Charge Freeze. “The FBI will continue to rigorously investigate violations of civil rights.”
This case was investigated by the Jackson Division of the FBI, with the cooperation of the Leflore County Detention Center and the Leflore County Detention Center. It was prosecuted by Assistant United States Attorney Robert Mims of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
Miami Woman Sentenced for her Role in a Methamphetamine Distribution Conspiracy Orchestrated from PrisonRead the Press Release
TULSA, Okla.— United States Attorney Trent Shores announced that Robin Tracy Zumwalt, 36, of Miami, Oklahoma, was sentenced today in United States District Court to three years of probation with eight months of home detention for her role in a methamphetamine drug distribution conspiracy.
At a plea hearing on June 7, 2018, Zumwalt admitted to discussing the distribution of more than 500 grams of methamphetamine facilitated by cell phone calls with an inmate, Slint Tate, who used contraband cell phones. When the calls were made, Zumwalt was living in Miami, Oklahoma, while Tate was serving a life sentence in Oklahoma state prison. On Tuesday, United States District Judge Claire V. Eagan sentenced Tate to 20 years in prison for orchestrating the drug conspiracy.
“This drug trafficking organization wreaked havoc in the lives of many in northeastern Oklahoma. Zumwalt and her co-conspirators earned the punishments received,” said U.S. Attorney Shores. “This prosecution was successful because of strong partnerships among federal, state, and local law enforcement officials. Working together, we achieved a result that makes our communities safer.”
This prosecution resulted from a joint investigation, known as “Operation Mama Tried,” conducted by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, State of Oklahoma District 13 Task Force, Oklahoma Bureau of Narcotics, Miami Police Department, and Grove Police Department. Assistant U.S. Attorneys Shannon Cozzoni and Catherine Depew prosecuted the case.
Latvian National Sentenced to Prison for “Scareware” Hacking Scheme That Targeted Minneapolis Star Tribune WebsiteRead the Press Release
A Latvian man was sentenced today in Minneapolis for participating in a lucrative “scareware” hacking scheme that targeted visitors to the Minneapolis Star Tribune’s website. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erica H. MacDonald of the District of Minnesota and Special Agent in Charge Jill Sanborn of the FBI’s Minneapolis Field Office made the announcement.
Peteris Sahurovs aka “Piotrek” and “Sagade,” 29, was sentenced to 33 months in prison for conspiracy to commit wire fraud. District Judge Ann D. Montgomery of the District of Minnesota imposed the sentence. Sahurovs will be removed from the United States to Latvia following his prison sentence. Sahurovs was arrested on a District of Minnesota indictment in Latvia in June 2011, but was released by a Latvian court and later fled. In November 2016, Sahurovs was located in Poland and apprehended by Polish law enforcement and extradited to the United States in June 2017. Sahurovs was at one time the FBI’s fifth most wanted cybercriminal and a reward of up to $50,000 had been offered for information leading to his arrest and conviction. He pleaded guilty before Judge Montgomery on Feb. 7.
According to admissions made in connection with his plea, from at least May 2009 to June 2011, Sahurovs operated a “bullet-proof” web hosting service in Latvia, through which he leased server space to customers seeking to carry out criminal schemes without being identified or taken offline. The defendant admitted that he knew his customers were using his servers to perpetrate criminal schemes, including the transmission of malware, fake anti-virus software, spam, and botnets to unwitting victims, and he received notices from Internet governance entities (such as Spamhaus) that his servers were hosting malicious activity. Nonetheless, Sahurovs admitted he took steps to protect the criminal schemes from being discovered or disrupted, and hosted them on his servers for financial gain.
Sahurovs admitted that from in or about February 2010 to in or about September 2010, he registered domain names, provided bullet-proof hosting services, and gave technical support to a “scareware” scheme targeting visitors to the Minneapolis Star Tribune’s website. On Feb. 19, 2010, the Minneapolis Star Tribune began hosting an online advertisement, purporting to be for Best Western hotels, on its website, startribune.com. Two days later, however, the advertisement began causing the computers of visitors to the website to be infected with malware. This malware, also known as “scareware,” caused visitors to experience slow system performance, unwanted pop-ups and total system failure. Website visitors also received a fake “Windows Security Alert” pop-up informing them that their computer had been infected with a virus and another pop-up that falsely represented that they needed to purchase the “Antivirus Soft” computer program to fix their security issues, at a price of $49.95.
Website visitors who clicked the “Antivirus Soft” window were presented with an online order form to purchase a purported security program called “Antivirus Soft.” Users who purchased “Antivirus Soft” would receive a file download that “unfroze” their computers and stopped the pop-ups and security notifications. However, the defendant admitted, the file was not a real anti-virus product and did not perform legitimate computer security functions, and merely caused malware that members of the conspiracy had previously installed to cease operating. Meanwhile, the defendant admitted, victim users who did not choose to purchase “Antivirus Soft” became immediately inundated with so many pop-ups containing fraudulent “security alerts” that all information, data, and files on their computers were rendered inaccessible. Members of the conspiracy defrauded victims out of substantial amounts of money as a result of the scheme. The defendant admitted that as a result of his participation, he made between $150,000 and $250,000 U.S. dollars.
This case was investigated by the FBI’s Minneapolis Field Office. The Criminal Division’s Office of International Affairs secured the extradition from Poland and the Polish National Police, the National Prosecutor’s Office, and the Ministry of Justice provided substantial assistance in this matter. Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Former Tuskegee Police Lieutenant Sentenced to Prison for Assaulting ArresteeRead the Press Release
Former Tuskegee Police Department Lieutenant Alex Huntley, 54, was sentenced to 36 months in prison and three years’ supervised release for beating a handcuffed and compliant arrestee, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Louis V. Franklin, Sr., of the Middle District of Alabama, and FBI Special Agent in Charge James Jewell.
On June 8, a federal jury convicted Huntley of one count of violating an individual’s civil rights resulting in bodily injury. Huntley was sentenced today by Chief United States District Court Judge W. Keith Watkins of the Middle District of Alabama.
According to evidence presented at trial, on Dec. 24, 2014, Huntley arrested a man who scuffled with police near the Tuskegee town square and directed a fellow police officer to transport the arrestee back to the Tuskegee Police Department for booking. Once there, Huntley sprayed pepper spray in the arrestee’s face, even though the arrestee was handcuffed and following police instructions. Huntley then took the arrestee inside the police station, where Huntley knocked the still-handcuffed arrestee to the ground, stomped on him, and repeatedly kicked and punched him. In between blows, Huntley stood over the arrestee and yelled threats at him as the arrestee screamed in pain. A police officer recruit who witnessed the beating was so horrified that he surreptitiously audio-recorded the assault on his cell phone and subsequently provided the recording to federal authorities.
“This defendant abused his police powers by beating a restrained man in his custody,” said Acting Assistant Attorney General John Gore. “The Department will not tolerate such abuses, and will continue to vigorously enforce our nation’s laws and hold officers who break the law accountable.”
“The vast majority of our police officers are dedicated to protecting and serving the public with strength, courage, and valor. Unfortunately, Mr. Huntley was not so dedicated,” said U.S. Attorney Franklin. “Police officers have an increasingly difficult job. This office will strive to support our law enforcement brothers and sisters, but will also prosecute those law enforcement officers who abandon their oath to protect and serve and chose to engage in criminal conduct that they are sworn to oppose.”
“Lady Justice wears a blindfold for a reason, and a violation of someone’s civil rights by a sworn law enforcement officer cannot be tolerated. The FBI will continue to pursue these types of cases with all available resources,” said FBI Special Agent in Charge James Jewell.
This case was investigated by the FBI. The Alabama State Bureau of Investigation also assisted in the investigation. Trial Attorney Samantha Trepel of the Justice Department’s Civil Rights Division and Assistant United States Attorney Denise O. Simpson of the United States Attorney’s Office for the Middle District of Alabama prosecuted the case.
Federal Court Shuts Down Illinois Tax Return PreparerRead the Press Release
A federal court has permanently barred Kathleen Sims-Crawford and KSC Business Support Services Inc. from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order, entered by Judge John J. Tharp Jr., of the U.S. District Court for the Northern District of Illinois, also prohibits Sims-Crawford from owning and managing a tax return preparation business. Sims-Crawford consented to the order.
According to the government complaint, Sims-Crawford, a Chicago resident who owns and operates KSC Business Support Services, Inc., prepared returns that reported false or inflated claims for the Earned Income Credit, fabricated or inflated business losses, and false rental income and/or expenses. The complaint alleged that these returns fraudulently reduced customers’ reported tax liabilities and helped taxpayers to obtain refunds to which they were not entitled. This conduct allegedly caused the United States hundreds of thousands of dollars in harm.
The IRS has a list of steps on its website that you can take and ten tips for choosing a tax preparer. Each year, the IRS releases the top 12 scams, known as the Dirty Dozen. Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2018, and taxpayers seeking a return preparer should remain vigilant. The IRS has some information on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division at [email protected] with details.
Company in California Agrees to Pay Clean Water Act Fines, Mitigate Impacts to Sensitive Streams and WetlandsRead the Press Release
Goose Pond Ag, Inc., a Florida corporation, and its manager of operations Farmland Management Services, Inc., an affiliate of the John Hancock Life Insurance Company, have agreed to pay a civil penalty, preserve streams and wetlands, and perform mitigation to resolve violations of the Clean Water Act (CWA) on property near the Sacramento River located in Tehama County, California, the Justice Department announced today. The property in this case was acquired from Duarte Nursery Inc. and adjoins a Duarte site that was the subject of a settlement agreement announced by the Justice Department in August 2017 and approved by a federal judge on December 7, 2017.
Goose Pond Ag and Farmland Management Services have agreed to pay $5.3 million in civil penalties and mitigation for substantial acres of disturbed streams and wetlands on the property that are connected to the Sacramento River. In addition, the settlement requires the companies to permanently preserve hundreds of acres of streams, wetlands, and buffer areas. The agreement allows the companies to continue using the site for cattle grazing, to apply for a CWA permit to conduct other activities in jurisdictional waters on the site, and to seek future determinations concerning jurisdictional waters at the site.
“Today’s agreement constitutes one of the largest settlements ever reached in a case involving the unpermitted filling of streams and wetlands. Importantly, this result also finally draws to a close another chapter in long-running Clean Water Act litigation involving these properties near the Sacramento River in Tehama County,” said Jeffrey H. Wood, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Like the Duarte settlement last year, today’s agreement serves the public interest in enforcement of the Clean Water Act and deterrence of future violations.”
“The Corps is satisfied that this enforcement action has been resolved against these companies,” said Michael Jewell, the Chief of the Regulatory Division for the U.S. Army Corps of Engineers’ Sacramento District. “We encourage members of the public to contact the Corps prior to engaging in activities that are regulated under the Clean Water Act. The Corps is always willing to talk to the public about the Regulatory Program and to provide information on jurisdiction, permit requirements, and any other aspects of the Program.”
This case stems from activities these companies conducted after they purchased property that had laid fallow and unfarmed for more than 20 years. Goose Pond bought the 1,500-acre property in 2012 from Duarte Nursery, Inc. for $8.7 million, and shortly thereafter, Farmland Management Services began operating heavy machinery through streams and wetlands as part of the companies’ efforts to convert the property to a walnut orchard. That machinery included “deep rippers” that drag long metal shanks through the ground to break up or pierce highly compacted, impermeable or slowly permeable surface layers, or other similar kinds of restrictive soil layers. The deep ripping in this case destroyed or significantly degraded the streams and wetlands at the site.
Even before Goose Pond’s purchase of the site, the companies received aerial photographs, advice from environmental consultants, and other information that alerted them to federally-protected streams and wetlands on the property. Despite that information, the companies conducted extensive ripping and other activities in streams and wetlands without a CWA dredge-or-fill permit. The settlement agreement reached today secures a significant penalty and mitigation for these violations, while providing fairness for farmers and other landowners who comply with the applicable laws.
Last year, in resolving a related case against John Duarte and Duarte Nursery, Inc., who had conducted unpermitted ripping activities immediately south of the property at issue here, the United States gave assurances that these cases are not (and will not be used as) a pretext for federal prosecution of farmers who engage in normal plowing on their farms. No federal dredge-or-fill permit is required for plowing as defined in the regulations, and no such permit is required for discharges from "normal farming ... activities," such as plowing, if they are part of an established ongoing farming operation and not for the purpose of converting federally protected waters to new uses. Those protections for farmers remain in the law today and will continue to be recognized.
The proposed consent decree, lodged in the U.S. District Court in Sacramento, is subject to a 30-day comment period and final court approval. A copy of the proposed consent decree is available on the Justice Department Web site at www.usdoj.gov/enrd/Consent_Decrees.html.
Romanian National Pleads Guilty in Multi-State ATM Card Skimming SchemeRead the Press Release
A Romanian man pleaded guilty today in U.S. District Court in Springfield, Massachusetts to conspiracy to commit bank fraud, bank fraud, and aggravated identity theft in connection with a multi-state card skimming scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling of the District of Massachusetts, Special Agent in Charge Stephen Marks of the U.S. Secret Service (USSS) Boston Field Division, Special Agent in Charge Peter C. Fitzhugh of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New England Division, Medford Police Chief Leo Sacco and East Meadow, Massacusetts Police Chief Jeffrey Dalessio made the announcement today.
Bogdan Viorel Rusu, 38, of Romania and formerly residing in Queens, New York, pleaded guilty to an Information that charged him with one count each of conspiracy to commit bank, bank fraud, and aggravated identity theft. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 11. Rusu was arrested on Nov. 14 2016, and initially charged by complaint in the District of New Jersey and has been in custody since.
According to the agreed-upon statement of facts in Rusu’s plea agreement, between approximately Aug. 3, 2014 until his arrest on Nov. 14, 2016, Rusu engaged in a widespread bank fraud conspiracy that targeted various banks in Massachusetts, New York, and New Jersey. As set forth below, Rusu and his co-conspirators captured payment card account information from customers as they accessed their accounts through automatic teller machines (ATMs) and then used that information to steal money from the customers’ bank accounts.
Rusu admitted that to capture the account information, he and his co-conspirators installed electronic devices (i.e., “skimming devices”) that surreptitiously recorded customers’ bank account information on the banks’ card-readers at the vestibule door, the ATM machine, or both. In addition, Rusu and his co-conspirators installed other devices (generally either pinhole cameras or keypad overlays) in order to record the keystrokes of bank customers as they entered their personal identification numbers to access their bank accounts. After enough customers accessed the ATM machine, Rusu and/or his co-conspirators removed the skimming devices. They then transferred the illegally obtained information from the skimming devices and pinhole cameras to counterfeit payment cards. Finally, they visited other ATM machines with the counterfeit cards to obtain cash from the skimmed bank accounts before the bank or the customers became aware of their illicit conduct.
Pursuant to his plea agreement, Rusu admitted that he and his co-conspirators caused losses of $364,419 in Massachusetts and $75,715 in New York (totaling $440,134 from 531 individual accounts), in addition to losses in New Jersey of $428,581.
The case was investigated by USSS, HSI, the Medford Police Department and the East Longmeadow Police Department. The case is being prosecuted by Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office.
Justice Department Reaches Settlement with Nebraska Landlord for Charging Unlawful Lease Termination Fees to U.S. ServicemembersRead the Press Release
The Justice Department today announced that Twin Creek Apartments, LLC (Twin Creek), owner of an apartment complex in Bellevue, Nebraska, adjacent to the Offutt Air Force Base, has agreed to a settlement to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by imposing lease termination charges against 65 servicemembers who had exercised their federal right to terminate their residential leases. The charges ranged from $72 to $1,498 per servicemember. The Department initiated an investigation into the practices of Twin Creek after receiving a referral from a U.S. Air Force Community Legal Services office.
The SCRA provides certain protections to servicemembers who must terminate their residential leases in order to comply with military orders for a permanent change of station, deployment, or retirement. Under the terms of the settlement, Twin Creek must pay a total of $76,516 in damages to the 65 identified servicemembers. Under the agreement, Twin Creek will also pay a civil penalty of $20,000 to the United States. The settlement also prohibits Twin Creek from engaging in future violations of the SCRA.
“The SCRA prohibits landlords from charging members of our armed forces an extra fee when they move due to military orders,” said Acting Assistant Attorney General John Gore. “We appreciate Twin Creek’s cooperation with the Department to reach a settlement. The Justice Department continues to ensure that we are doing all we can to protect the rights of servicemembers, veterans, and their families.”
“This is a just resolution for the former tenants and demonstrates our continuing commitment to protecting our servicemembers,” said Joe Kelly, U.S. Attorney for the District of Nebraska.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and United States Attorney’s Offices. Since 2011, the Department has obtained over $467 million in monetary relief for servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Former Director of Detroit Technology Office Sentenced to Prison for BriberyRead the Press Release
The former Director of the City of Detroit’s Office of Departmental Technology Services (DTS) was sentenced today to 20 months in prison, to be followed by two years of supervised release, for accepting more than $29,500 in bribe payments from two information technology companies providing services and personnel to the City of Detroit.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Division made the announcement.
Charles L. Dodd, 48, of Canton, Michigan, previously pleaded guilty in the U.S. District Court for the Eastern District of Michigan to one count of federal program bribery. U.S. District Judge Robert H. Cleland of the Eastern District of Michigan presided over the sentencing.
According to admissions made in connection with his plea, Dodd held numerous supervisory positions with the City of Detroit, culminating with his appointment as Director of DTS in 2014. In those positions, Dodd exercised supervisory authority over a staff of dozens of city employees and contractors, and held substantial influence over the administration of multi-million-dollar contracts between the City of Detroit and private information technology companies.
Dodd admitted that between 2009 and 2016, he accepted cash payments totaling more than $15,000 and a trip to North Carolina, among other things of value, from Parimal D. Mehta, 55, of Northville, Michigan, who was then the president and chief executive officer of an information technology company. During that same time period, Dodd also accepted more than $14,500 in cash payments from the chief executive officer and an employee of another information technology company. In return for these cash payments and other things of value, Dodd agreed to provide preferential treatment to the companies, he admitted.
This case was investigated by the FBI’s Detroit Division. Trial Attorneys Robert J. Heberle and James I. Pearce of the Criminal Division’s Public Integrity Section prosecuted the case.
Financial Advisor Pleads Guilty to Money Laundering Charge in Connection with Bribery Scheme Involving Ecuadorian OfficialsRead the Press Release
A U.S.-based financial advisor pleaded guilty today for his role in an international money laundering conspiracy involving the proceeds of a scheme to pay bribes to officials of Ecuador’s state-owned and state-controlled energy company, Empresa Pública de Hidrocarburos del Ecuador (PetroEcuador).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida and Acting Special Agent in Charge Kelly Jackson of IRS Criminal Investigation’s (IRS-CI) Washington, D.C. office made the announcement.
Jose Larrea, 40, a U.S. citizen who lives in Miami, Florida, pleaded guilty in Miami before U.S. District Judge Marcia G. Cooke of the Southern District of Florida to one count of conspiracy to commit money laundering. He is scheduled to be sentenced on Nov. 14, by Judge Cooke.
According to his admissions at the plea hearing, Larrea conspired with his co-defendant, Frank Roberto Chatburn Ripalda (Chatburn), 40, a dual U.S. and Ecuadorian citizen who also lives in Miami, and others to conceal the proceeds of an unlawful scheme, namely to pay bribes to PetroEcuador officials. Larrea admitted to participating in the money laundering scheme by wiring more than $1 million from his own U.S.-based bank account to several U.S.-based bank accounts. Those wire transfers were made to conceal a bribery scheme involving an oil services contractor who made payments to PetroEcuador officials in an effort to retain existing contracts and win new business with PetroEcuador. Larrea further admitted that he created false and back-dated documents on behalf of the oil services contractor.
Larrea is the fourth individual to plead guilty in this case. In addition to Larrea, two former officials of PetroEcuador who received bribe payments and the contractor described above have previously pleaded guilty to date in connection with the government’s ongoing investigations into the PetroEcuador bribery and money laundering schemes.
Chatburn was charged in the same indictment on April 19, with one count of conspiring to violate the Foreign Corrupt Practices Act (FCPA), one count of violating the FCPA, one count of conspiring to commit money laundering and two counts of money laundering. Chatburn has pleaded not guilty, and his trial is currently set for Oct. 15.
All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s International Corruption Squad in Miami and IRS-CI are investigating the case. Assistant Chief Lorinda Laryea and Trial Attorneys David Fuhr and Katherine Raut of the Criminal Division’s Fraud Section, Trial Attorneys Randall Warden and Mary Ann McCarthy of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Karen Rochlin and Nalina Sombuntham of the Southern District of Florida are prosecuting the case.
The U.S. Marshals Service and the Criminal Division’s Office of International Affairs has provided significant assistance by obtaining key evidence in this case, as have public authorities in, among other countries, Ecuador, Panama and the Cayman Islands.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Detroit-Area Podiatrist Sentenced to Prison for Health Care FraudRead the Press Release
A Detroit-area podiatrist was sentenced to 28 months in prison today for his participation in a $1 million scheme involving podiatry services that were billed to Medicare but were never rendered.
Assistant Attorney General Brian A. Benczowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit 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.
Lawrence Young, D.P.M., 70, of Bloomfield Hills, Michigan, was sentenced by U.S. District Judge Judith E. Levy of the Eastern District of Michigan, who also ordered the defendant to serve one year of supervised release following his prison sentence and ordered him to pay $337,907.31 in restitution to HHS and to forfeit the same amount. Young pleaded guilty to one count of health care fraud in January 2018.
As part of his guilty plea, Young admitted that from approximately January 2010 through April 2017, he engaged in a scheme to defraud the Medicare program by causing the submission of false and fraudulent claims to Medicare for the application of an “Unna Boot,” which is a type of medicated dressing typically applied after surgery to control swelling of the leg or foot. Young admitted regularly submitting these claims for reimbursement even though he knew that his patients routinely received nothing more than a non-medicated dressing. The scheme involved the submission of more $1 million in fraudulent claims to Medicare, he admitted.
This case was investigated by the FBI and HHS-OIG. Trial Attorneys Tom Tynan 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, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Seattle Man Pleads Guilty to Cyberstalking CampaignRead the Press Release
A Seattle, Washington man pleaded guilty in U.S. District Court in the Western District of Washington for conducting cyberstalking and threat campaigns against multiple Washington residents. The victims’ names are being withheld to protect their privacy.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Annette L. Hayes of the Western District of Washington made the announcement.
“Joel Kurzynski’s guilty plea demonstrates that conduct occurring online can cause victims serious harm and anguish offline,” said Assistant Attorney General Benczkowski. “While this prosecution cannot undo the damage this defendant inflicted, it sends a clear message that the Criminal Division and our law enforcement partners are firmly committed to protecting the public and aggressively pursuing malicious actors who hide behind the anonymity of the Internet.”
“This defendant thought he could use a computer keyboard to stalk and harass others with remarkable cruelty -- all while hiding in the shadows. He could not have been more wrong,” said U.S. Attorney Hayes. “Conduct that we all know is wrong in the real world, is just as wrong in cyberspace and will be punished accordingly.”
Joel Kurzynski, 38, of Seattle, Washington, a former Information Technology professional, was charged in a felony information with two counts of cyberstalking. Kurzynski had his initial appearance and pleaded guilty today before Chief U.S. Magistrate Judge Brian A. Tsuchida of the Western District of Washington. The Court scheduled the sentencing hearing for Dec. 7 before Senior U.S. District Judge Robert S. Lasnik.
According to admissions made in connection with his plea, Kurzynski engaged in an extensive and rapidly escalating cyberstalking campaign that targeted two individuals known to him. The online campaign involved -- among other things -- death threats, body shaming, and hate speech. Beginning in March 2017, Kurzynski orchestrated numerous spam phone calls to Victim 1. The conduct soon escalated to fake dating profiles wherein Kurzynski portrayed Victim 1 as seeking sadomasochistic or underage relationships. These profiles contained photographs of Victim 1 and his contact information, resulting in solicitations and harassing messages directed toward Victim 1 from multiple strangers. Kurzynski then sent several anonymous death threats to Victim 1, including the threat, “faggot. Time to die.” At one point, Kurzynski impersonated a journalist and contacted Victim 1, claiming that an upcoming article would levy sexual misconduct allegations against Victim 1 related to Victim 1’s work with a non-profit youth organization.
Kurzysnki also admitted that in November 2017, he began registering Victim 2 for numerous weight loss and suicide prevention programs, resulting in a wave of calls and emails from entities such as Overeaters Anonymous, Weight Watchers, Yellow Ribbon Suicide Prevention, and others. Within weeks, Kurzynski started sending anonymous death threats to Victim 2, many of which referenced Victim 2’s work address. One threat claimed that he was waiting for her in the lobby, and another that said, “Looking forward to seeing you today and how much you bleed. Don’t go to the bathroom alone.”
The U.S. Secret Service’s Seattle Field Office investigated the case with substantial assistance from the Seattle Police Department and King County Prosecutor’s Office. Trial Attorney Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Francis Franze-Nakamura of the Western District of Washington are prosecuting the case.
Victims of cyberstalking campaigns such as this often may be hesitant to come forward. The Justice Department encourages individuals who may be the victims of similar schemes to contact their local law enforcement agencies to report this conduct.
Statement by Attorney General Sessions on Chinese Narcotics SchedulingRead the Press Release
Attorney General Jeff Sessions today issued the following statement on Chinese Narcotics Scheduling:
“The Trump Administration is fighting back against the opioid crisis, and the Department of Justice has taken a number of aggressive and innovative steps to combat many of the contributing factors to the havoc inflicted in our neighborhoods and communities across the country.
“However, full cooperation on an international level is required to eradicate the scourge of fentanyl and opioids from the world. In recent weeks, as the Justice Department announced multiple accomplishments in the fight against opioids, I expressed hope that China’s Ministry of Public Security would schedule fentanyl-based substances as a class.
“The Ministry of Public Security announced—effective September 1, 2018—the scheduling of 32 substances, including two opioids, as narcotics. This is an important step in the global fight against opioids and, by providing Chinese law enforcement additional tools, it affords our federal law enforcement authorities a greater opportunity to continue working on important joint investigations. I thank the Government of China for this action and I look forward to further cooperation.”
South Florida Pharmacist Convicted of Health Care Fraud for Role in $5 Million Compounding Pharmacy SchemeRead the Press Release
A federal jury found a South Florida pharmacist guilty today of health care fraud for his role in a $5 million compounding pharmacy scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the Department of Health and Human Services Office of Inspector General (HHS-OIG)’s Miami Regional Office, Special Agent in Charge John F. Khin of the Department of Defense Office of Inspector General – Defense Criminal Investigative Service (DCIS)’s Southeast Field Office and Florida Attorney General Pam Bondi made the announcement.
After a four-day trial, Stephen Chalker, 42, of Wellington, Florida, was convicted of one count of conspiracy to commit health care fraud and two substantive counts of health care fraud. Sentencing has been scheduled for Nov. 15 before U.S. District Judge Donald M. Middlebrooks of the Southern District of Florida, who presided over the trial.
According to evidence presented at trial, from approximately September 2014 to August 2016, Chalker engaged in a scheme to defraud Medicare, TRICARE and Medicaid by submitting false and fraudulent claims for compounded drugs and other prescription medications that were not medically necessary and/or never provided. The evidence established that in his role as the pharmacist-in-charge at Pop’s Pharmacy, a now-defunct pharmacy located in Deerfield Beach, Florida, Chalker submitted or caused the submission of claims in the amount of several thousands of dollars each for a single tube of pain and scar creams that patients did not want, did not need, and in some cases did not receive. Chalker and his co-conspirators ran a nationwide telemarketing and telemedicine scheme in which there was no real patient-prescriber relationship or actual patient care. As a result of claims submitted in connection with the scheme, Medicare, TRICARE and Medicaid made payments totaling nearly $5 million, the evidence showed.
Two other defendants have been charged in this case. Christopher Liva, 40, of Boca Raton, Florida, and Elaina Liva, 66, of Pompano Beach, Florida, both of whom pleaded guilty and are awaiting sentencing.
This case was investigated by the FBI, HHS-OIG, DCIS and the State of Florida Medicaid Fraud Control Unit. Trial Attorneys Jim Hayes and Leslie Wright 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, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Fugitive Lawyer Involved in Largest Social Security Fraud Scheme Sentenced to 15 Years in Prison for His Escape and Related CrimesRead the Press Release
A former fugitive and social security disability lawyer was sentenced to 15 years in prison today for his role in retaliating against an informant and fleeing from the United States. The sentence is to run consecutive to the 12 years in prison previously imposed for his role in the underlying scheme to defraud the Social Security Administration (SSA) of more than $550 million.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Michael McGill of the Social Security Administration Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky Field Division; Special Agent in Charge Ryan L. Korner of the IRS Criminal Investigation (IRS-CI) Cincinnati Ohio Field Office and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Atlanta Regional Office made the announcement.
Eric Christopher Conn, 58, of Pikeville, Kentucky, was sentenced by U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky, who also ordered Conn to pay $72,574,609 in restitution. On June 4, Conn was convicted of one count of conspiracy to defraud the United States, one count of conspiracy to escape, and one count of conspiracy to retaliate against an informant. Judge Reeves further ordered that the 15-year term of imprisonment imposed run consecutive to the 12-year term of imprisonment the Court imposed on July 12, 2017, for convictions of paying illegal gratuities to a Social Security Administrative Law Judge and theft of government money. In total, for his role in the largest fraud scheme in the history of the Social Security program, Conn was sentenced to serve 27 years in prison.
“After orchestrating a massive $550 million social security fraud, Eric Conn tried to escape justice by fleeing to Honduras,” said Assistant Attorney General Benczkowski. “But thanks to the tremendous work of U.S. law enforcement, not only was Conn’s fraud discovered and prosecuted, he was brought back to the United States to answer for his crimes. This case should serve as a strong warning to those who think they can steal from our taxpayer funded programs and escape liability: our law enforcement partners will find you and you will be brought to justice.”
“Mr. Conn directed a scheme that defrauded millions of dollars from Social Security and affected many people in Kentucky and West Virginia,” said SSA-OIG Special Agent in Charge McGill. “Despite his best efforts to escape justice for his actions, Mr. Conn has finally been held accountable with today’s significant sentencing. The SSA-OIG thanks all of our law enforcement partners for their assistance during this investigation, and we remain committed to pursuing Social Security fraud and improving disability program integrity.”
“Conn’s sentencing brings closure to the promise the FBI made that we would not rest until Conn was held accountable for the lives he devastated and the trust he betrayed,” said FBI Special Agent in Charge Hess.
“Theft from American taxpayers in any capacity is a serious crime,” said IRS-CI Special Agent in Charge Ryan L. Korner. “Eric Conn’s actions were particularly egregious, as he victimized those who are most vulnerable and then made a cowardly attempt to escape punishment. Thanks to the coordinated efforts of our law enforcement partners and their commitment to seeking justice for all Americans, Conn was made to face the consequences of his actions.”
“When individuals are approved for certain Social Security and SSI benefits, they become entitled to Medicare or Medicaid,” said HHS-OIG Special Agent in Charge Jackson. “As a result, a large portion of Conn’s fraudulent scheme drained federal health care plans and cheated needy patients out of the limited dollars available for these vital taxpayer-funded programs.”
According to admissions made as part of Conn’s June 2018 plea, from October 2004 to December 2017, Conn participated in a scheme with former SSA administrative law judge David Black Daugherty, multiple doctors, including clinical psychologist Alfred Bradley Adkins, and others to submit thousands of falsified medical documents to the SSA to fraudulently obtain disability benefits totaling more than $550 million for thousands of individuals. According to the admissions, upon a former SSA employee discovering and providing information about the scheme to federal agents, Conn and former SSA administrative law judge Charlie Paul Andrus conspired and acted to have the former SSA employee terminated in an effort to discredit the employee. Finally, Conn admitted that after pleading guilty in March 2017, and prior to being sentenced on June 2, 2017, he fled the country with the help of Curtis Lee Wyatt by severing the electronic monitoring device from his ankle and fleeing across the Mexican border.
Conn was originally charged in April 2016, along with Daugherty and Adkins, in an 18-count indictment with conspiracy to commit mail and wire fraud and other related offenses in connection with the disability fraud scheme. Conn subsequently pleaded guilty on March 24, 2017, to a two-count information charging him with theft of government money and paying illegal gratuities, and, after fleeing, he was sentenced in absentia on July 14, 2017 to 12 years in prison on those charges. After his flight from the United States, Conn was charged, along with Wyatt, in September 2017, in a seven-count indictment with conspiracy to escape, escape and other related offenses. On Dec. 5, 2017, Conn was returned to the United States from Honduras after being apprehended by Honduran authorities.
Andrus pleaded guilty in June 2016 to a one-count information charging him with conspiracy to retaliate against an informant, and was sentenced Aug. 7, 2017 to six months in prison. Daugherty pleaded guilty in May 2017 to a two-count information charging him with receiving illegal gratuities, and was sentenced on Aug. 25, 2017, to four years in prison. Adkins was found guilty following a six-day trial in June 2017 of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, one count of wire fraud and one count of making false statements, and was sentenced on Sept. 22, 2017, to 25 years in prison. Wyatt pleaded guilty in March 2018, and, on June 29, 2018 was sentenced to seven months in prison.
The case was investigated by the SSA-OIG, FBI, IRS-CI and HHS-OIG. Trial Attorneys Dustin M. Davis of the Criminal Division’s Fraud Section and Ann Marie Blaylock and Rebecca Caruso of the Criminal Division’s Money Laundering and Asset Recovery Section prosecuted the case, with previous co-counsel including Assistant U.S. Attorneys Elizabeth G. Wright of the District of Maryland and Trey Alford of the Western District of Missouri as well as Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.
FBI Director Christopher Wray and September 11th Victim Compensation Fund Special Master Rupa Bhattacharyya Held Public Forum on Benefits for Federal Law Enforcement Officers Who Responded on 9/11 and Now Suffer 9/11-Related IllnessesRead the Press Release
Each year, as the anniversary of the Sept. 11, 2001, terrorist attacks approaches, the country is reminded of the unprecedented losses suffered. As we approach the anniversary and honor the fallen, the Justice Department also honors the survivors, particularly those who are experiencing 9-11 health related illnesses. The September 11th Victim Compensation Fund (VCF) is increasing its efforts to identify those who may be eligible for compensation because they suffer physical health effects as a result of their exposure but are not aware of the VCF, and seeks to award compensation to those who continue to suffer. As part of this outreach effort, FBI Director Christopher Wray and VCF Special Master Rupa Bhattacharyya hosted a public forum for approximately 150 federal law enforcement officers today to provide vital information about federal programs that are available to those who responded to the attacks in New York City, at the Pentagon, and in Shanksville, Pennsylvania, on Sept. 11, 2001.
“Like so many first responders, our agents were fearless in their response on September 11 and in the days and months that followed, exposing themselves to what we now know were toxic conditions,” said FBI Director Wray. “We are here today to spread the word about the VCF and the World Trade Center Health Program – two long-standing programs that provide vital assistance to those who have become sick as a result of their 9/11 exposure.”
“We are extremely grateful to have Director Wray, Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division and U.S. Attorney Geoffrey S. Berman of the Southern District of New York with us here today to raise awareness of the VCF as a resource for this brave community,” said VCF Special Master Bhattacharyya. “In addition to providing critical relief from financial hardship that results from 9/11 injuries and deaths, the VCF compensates victims – at least to some degree - for their pain and suffering, and can provide some peace of mind, though sadly, for many who fear leaving their families in need.”
After opening comments by the National September 11th Memorial and Museum President Alice Greenwald, Director Wray spoke with the group about the first responders who served their country in its greatest hour of need. “You fought for justice,” he said. “You fought to bring peace to the families who lost their loved ones. You fought to make sure that what happened that day would never -- ever -- happen again. So let us help you now. Let us fight for you. We’re in this together, and we’ll tackle it together, just as we have in the past 17 years.”
Director Wray was followed by retired FBI Supervisory Special Agent Lu Lieber, who talked about becoming sick years after her 9/11 exposure, and failing to connect the two until being invited to an FBI/VCF information sharing event last October. “Prior to Oct. 11, 2017, I was unaware of the World Trade Center Health Program and unaware that I was eligible to file a claim with the VCF,” said Lieber. “I did not connect my symptoms to 911 exposure. I have since registered with the WTC Health Program, and I am certified with six different conditions related to 911 exposure. Even if you don't feel sick, it is crucial to register with the World Trade Center Health Program and the VCF if you are certified with WTC related conditions. These programs are vital, they are available to help you and they may save your life.”
Lt. (Fmr.) Michael O’Connell, retired FDNY but a rookie when he was a first responder, spoke of his 9/11 experience and the illnesses that followed, and he, too, encouraged audience members to sign up for the World Trade Center Health Program, and to register with the VCF. “Those two programs saved my life, and saved my family,” said O’Connell. “They are there for you – go find them.”
The public forum, which included representatives from the World Trade Center Health Program, Department of Justice’s Bureau of Justice Assistance, the FealGood Foundation, 9/11 Health Watch, the FBI Agents Association, and the Federal Law Enforcement Officers Association, featured presentations on both the VCF and the World Trade Center Health Program, followed by a Q&A session with Special Master Bhattacharyya and Lieutenant Commander Brittany Rizek, Medical Benefits Team Lead of the World Trade Center Health Program. The audience was largely federal law enforcement officers who responded on 9/11 to the attacks in New York City, at the Pentagon, and at the Shanksville site.
“It’s critically important that we continue to reach out to individuals who may qualify for medical benefits through the World Trade Center Health Program,” said Lieutenant Commander Brittany Rizek. “We are dedicated to helping all eligible members affected by the September 11th attacks receive expert care.”
The VCF is also participating in the Voices of 9/11 17th Annual Day of Remembrance Information Forum on Monday, Sept. 10, to increase awareness and answer questions regarding the VCF.
As of Aug. 31, the VCF has found 20,874 claimants eligible for compensation. The VCF has made initial award determinations on 19,204 of those claims, and has issued revised awards on 5,011 claims due to an amendment or appeal. The total amount awarded to date is more than $4.28 billion to VCF claimants. In all, the VCF has compensated claims from more than 15,300 responders to the attacks in New York City, at the Pentagon, and at the Shanksville site, as well as almost 3,500 others who lived, worked, or traveled through areas of lower Manhattan and were exposed to debris and toxins generated by the attacks and their aftermath.
For additional information about the VCF and how to file a claim, please visit the VCF’s website at www.vcf.gov. If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555.
South Florida Man Sentenced to Prison for Hate Crime by Threatening to Blow up MosqueRead the Press Release
U.S. District Judge Federico A. Moreno sentenced a Miami area man to four years in prison, three years’ supervised release, and $1,800 in restitution for obstructing the free exercise of religious beliefs by threatening, in a phone message, to detonate a bomb at a mosque in Pembroke Pines, Florida, Acting Assistant Attorney General of the Civil Rights Division John Gore, U.S. Attorney Benjamin G. Greenberg, and Robert F. Lasky, Special Agent in Charge of the FBI Miami Field Office announced.
Dustin Allen Hughes, 26, pleaded guilty in June 2018 in the Southern District of Florida to one count of obstructing the free exercise of religious beliefs for making the threatening call. During the plea hearing, Hughes admitted that on May 5, he called an emergency contact for the Jamaat Ul Muttaqeen Mosque of Pembroke Pines, Florida, and left a hate-filled and profanity-laden voicemail message denigrating Islam and threatening to blow up the mosque. Hughes further admitted that in his message he specifically stated that he had a detonator, that he was “going to blow your . . . temple up,” and that “you guys are all going to be up in flames after I’m done with you.”
Following the threatening voice message, law enforcement was contacted and immediately responded, but no bomb was uncovered after an extensive exterior and interior sweep of the mosque.
“The sentence handed down today reflects the seriousness of threats to places of worship, which can instill fear in whole communities,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter how they worship, can live their lives freely and without fear.”
“This prosecution sends a clear message that committing hate crimes has serious consequences,” said U.S. Attorney Benjamin Greenberg. “Along with our law enforcement partners, the U.S. Attorney’s Office will continue to prosecute those individuals who threaten members of our South Florida community because of their religious beliefs.”
“Freedom of religion is a fundamental right for every American,” said Robert F. Lasky, Special Agent in Charge of the FBI Miami Field Office. “The FBI and its partners will work tirelessly to ensure anyone who threatens those rights is held accountable.”
This case was investigated by the FBI’s Miami Area Corruption Task Force and the FBI’s Joint Terrorism Task Force (JTTF). The Pembroke Pines Police Department, the Miami-Dade Police Department, and the City of Miami Police Department also provided assistance with this matter. The case was prosecuted by Assistant U.S. Attorney Michael Davis of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
Justice Department Files Statement of Interest in Harvard Discrimination Case Defending Claim That Harvard Intentionally Discriminates on the Basis of Race in AdmissionsRead the Press Release
The Department of Justice today filed a Statement of Interest on the side of the plaintiff in Students For Fair Admissions, Inc. v. President And Fellows Of Harvard College in the U.S. District Court for the District of Massachusetts. The plaintiff, Students For Fair Admissions, an organization of students and parents, alleges that Harvard College intentionally discriminates against Asian-American applicants when making admissions decisions. The plaintiff seeks relief from Harvard’s alleged discrimination under Title VI of the Civil Rights Act of 1964, a cornerstone civil rights law that prohibits discrimination on the basis of race, color, or national origin in programs and activities that receive federal financial assistance. The Department opened a Title VI investigation into Harvard’s admissions process in 2017 based upon a complaint filed by more than 60 Asian-American organizations.
The United States’ Statement of Interest filed today argues that Harvard has failed to show that it does not unlawfully discriminate against Asian Americans.
As a condition1 of receiving millions of dollars in taxpayer funding every year, Harvard specifically agrees to not discriminate on the basis of race in its admissions decisions. However, the students and parents who brought this suit have presented compelling evidence that Harvard’s use of race unlawfully discriminates against Asian Americans. In today’s filing, the United States urges the court to grant the plaintiffs the opportunity to prove these claims at trial.
In filing the Statement of Interest, Attorney General Jeff Sessions provided the following statement:
“No American should be denied admission to school because of their race. As a recipient of taxpayer dollars, Harvard has a responsibility to conduct its admissions policy without racial discrimination by using meaningful admissions criteria that meet lawful requirements. The Department of Justice has the responsibility to protect the civil rights of the American people. This case is significant because the admissions policies at our colleges and universities are important and must be conducted lawfully.”
Harvard admits that it uses race to decide whether to admit certain applicants to the college. Under Supreme Court precedent, Harvard must demonstrate that its use of race does not result in illegal discrimination. Harvard has failed to do so, and the Department filed a Statement of Interest that argues the plaintiffs should be allowed to proceed to a trial.
While Harvard admits to using race in its admissions process, it has failed to provide any meaningful criteria to explain how it weighs race against other factors in a candidate’s application (e.g., test scores and extracurricular activities), and how it limits its use of race to ensure that no illegal discrimination occurs. Supreme Court precedent requires Harvard to provide such an explanation, which it has failed to do in this case.
Further, the evidence shows that Harvard uses a “personal rating” that may be biased against Asian Americans. Based solely on a review of the applicant’s file, Harvard scores its applicants based on “subjective” factors such as “likability” and being a “good person” with “human qualities.” Harvard admits that, on average, it scores Asian-American applicants lower on this “personal rating” than applicants of other races.
Substantial evidence also demonstrates that Harvard admissions officers and committees consistently monitor and manipulate the racial makeup of incoming classes, which has resulted in stable racial demographics in Harvard’s admitted classes from year to year. The Supreme Court has called such attempts to “racially balance” the makeup of a student body “patently unconstitutional.”
Finally, the Justice Department has determined that Harvard—while using race to make admissions decisions for more than 45 years—has never seriously considered alternative, race-neutral ways to compile a diverse student body, which it is required to do under existing law.
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt.
1See 42 U.S.C. § 2000d; Gratz v. Bollinger, 539 U.S. 244, 275-76 & n.23 (2003) (“[D]iscrimination that violates the Equal Protection Clause of the Fourteenth Amendment committed by an institution that accepts federal funds also constitutes a violation of Title VI.”).
Justice Department Announces Release of New Fentanyl Safety Video for First RespondersRead the Press Release
Today, the Office of Justice Programs’ Bureau of Justice Assistance (BJA) released the Fentanyl Safety Recommendations for First Responders’ companion training video Fentanyl: The Real Deal. The video was produced by U.S. Customs and Border Protection to help first responders protect themselves when the presence of fentanyl is suspected or encountered on the job. The video is available here.
Fentanyl: The Real Deal provides recommendations to law enforcement on how to navigate safely around the increased prevalence of fentanyl in the illicit drug market. The video provides first responders with unified, scientific, and evidence-based recommendations for protective actions first responders should take when the presence of fentanyl is suspected, when exposure occurs, and when individuals exhibit signs of opioid intoxication.
"Exposure to synthetic opioids like fentanyl is one of the most dangerous threats facing law enforcement officers," Deputy Attorney General Rod J. Rosenstein said. "The Department of Justice worked with the White House, other Cabinet agencies, and many law enforcement organizations to produce a new safety video and training recommendations for first responders. I urge law enforcement officers to review the advice and take precautions to stay safe."
“We have a duty to protect those who keep our communities safe,” said DEA Acting Administrator Uttam Dhillon. “As we continue to fight this opioid epidemic, it is critical that we provide every tool necessary to educate the public, law enforcement, and first responders about the dangers of fentanyl. This video is a positive step in that direction.”
The new training video released today, as well as the Fentanyl Safety Recommendations for First Responders released in November 2017, is the result of a Federal Interagency Working Group coordinated by the White House National Security Council. Agencies represented on the working group include the Department of Justice, the Department of Health and Human Services, the Department of Transportation, and the Department of Homeland Security; the Office of the Director of National Intelligence; the Office of National Drug Control Policy; the National Institute for Occupational Safety and Health; and the U.S. Postal Inspection Service, in collaboration with 24 stakeholder organizations.
The collaboration of agencies and organizations on the safety recommendations guide and training video reflect concerns about increased prevalence of fentanyl in the illicit drug market. As a result, law enforcement and fire/EMS personnel must balance safety with mobility and efficiency. The training video provides tools and tips for first responders to take appropriate protective actions if they encounter fentanyl in the field.
For additional information about today’s BJA rollout event visit www.bja.gov
Former Hamtramck, Michigan, Police Officer Indicted for Excessive Use of Force, Obstruction of Justice, and Firearms OffensesRead the Press Release
The Department of Justice today announced that a federal grand jury sitting in the U.S. District Court for the Eastern District of Michigan returned a six-count indictment charging former Hamtramck, Michigan, police officer Ryan McInerney, 42, with civil rights violations, obstruction of justice, and firearms offenses in connection with two civilian arrests on July 22, 2014. McInerney is charged with violating two civilians’ civil rights when he assaulted them with a pistol without justification during separate arrests on the same night. The indictment further charges McInerney with two counts of using a firearm during and in relation to the civil rights offenses, as well as with writing false reports to cover up his excessive uses of force. As a result of the assaults, one of the civilians suffered broken facial bones and lacerations requiring stitches, and the other civilian suffered broken teeth, among other injuries.
The civil rights charges carry a statutory maximum sentence of 10 years in prison for each offense. The obstruction charges carry a statutory maximum sentence of 20 years in prison for each offense. The firearms charges carry a mandatory minimum, consecutive sentence of five to seven years in prison for each offense.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Frances Lee Carlson of the Eastern District of Michigan and Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent unless and until proven guilty.
Justice Department Settles Immigration-Related Discrimination Claim Against International Law FirmRead the Press Release
The Justice Department today announced that it reached a settlement agreement with Clifford Chance US LLP, a large, international law firm with its U.S. headquarters located in New York. This agreement resolves the Department’s investigation into whether the law firm engaged in hiring discrimination by refusing to consider work-authorized non-U.S. citizens and dual citizens to staff a client project, in violation of the Immigration and Nationality Act (INA).
The Department determined that there was reasonable cause to believe that from March 30, 2017, until at least July 7, 2017, Clifford Chance unlawfully restricted its staffing for 36 positions on a document review project based on citizenship status. The Department’s investigation determined that Clifford Chance’s unlawful practice of excluding otherwise qualified non-U.S. citizens and dual U.S. citizens from the document reviewer positions was based on the law firm’s misunderstanding of the requirements of the International Traffic in Arms Regulations (ITAR). The Department found that the law firm improperly terminated or removed three individuals from their positions based on their citizenship status.
The ITAR regulates specific exports of defense articles and services, and – absent State Department authorization – limits access to certain sensitive information to U.S. citizens, U.S. nationals, lawful permanent residents, asylees, and refugees. The ITAR thus does not authorize or require employers to hire only U.S. citizens. Employers that limit their hiring to U.S. citizens without a proper legal basis may violate the INA’s anti-discrimination provision, which prohibits hiring discrimination based on citizenship and national origin.
“Employers subject to the ITAR must be careful not to engage in unlawful discrimination against U.S. workers,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice is committed to ensuring that employers do not unlawfully exclude U.S. citizens and work authorized non-U.S. citizens from employment opportunities.”
Under the settlement, Clifford Chance will offer to pay lost wages to three individuals who were removed from the project, pay a $132,000 civil penalty to the United States, train relevant employees about the requirements of the INA’s discrimination provision, inform clients who request citizenship status restrictions for staff of the INA’s requirements, and be subject to departmental monitoring and reporting requirements for two years.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
More information on how employers can avoid unlawful citizenship status discrimination is available here. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. More information on the ITAR is available here.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing, or recruitment or referral, can file a charge or contact IER’s worker hotline for assistance.
Justice Department Awards $32 Million Through the Improving the Criminal Justice Response ProgramRead the Press Release
The Justice Department’s Office on Violence Against Women (OVW) today announced 54 grants totaling $32 million through its Improving the Criminal Justice Response to Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program.
These grants will help fund state, local, and tribal governments and courts’ efforts to ensure that the crimes of sexual assault, domestic violence, dating violence and stalking are treated as serious violations of criminal law through the coordinated involvement of the entire criminal justice system and community-based victim service providers. The recipients of these grants will work collaboratively with justice system and victim service provider partners to identify problems and share ideas that will result in enhanced responses that support victim safety and offender accountability.
Recipients of awards under OVW’s Improving the Criminal Justice Response to Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program are:
- One Place Metro Alabama Family Justice Center (Alabama);
- Alaska Network on Domestic Violence and Sexual Assault (Alaska);
- City of Tucson (Arizona);
- City and County of San Francisco (California);
- City of San Jose (California);
- County of Contra Costa (California);
- County of Riverside (California);
- WEAVE Incorporated (California);
- Young Women’s Christian Association of Silicon Valley (California);
- Rose Andom Center (Colorado);
- City of Gainesville (Florida);
- City of Homestead (Florida);
- Hillsborough County Board of County Commissioners (Florida);
- Pinellas County Board of County Commissioners (Florida);
- City of Rockford (Illinois);
- Freedom House (Illinois);
- Iowa State Judicial Branch (Iowa);
- City of Richmond (Kentucky);
- Mountain Comprehensive Care Center (Kentucky);
- New Orleans Family Justice Center (Louisiana);
- Wellspring Alliance for Families, Incorporated (Louisiana);
- Cumberland County (Maine);
- Maine Coalition to End Domestic Violence (Maine);
- City of Lowell (Massachusetts);
- Council on Domestic Violence and Sexual Assault (Michigan);
- Judiciary Courts of the State of Minnesota (Minnesota);
- City of Lee’s Summit (Missouri);
- Lake County (Montana);
- Montana Department of Justice (Montana);
- Nevada Office of the Attorney General (Nevada);
- Strafford County (New Hampshire);
- Jersey Battered Women’s Service, Incorporated (New Jersey);
- YWCA of Eastern Union County (New Jersey);
- Bronx County Borough President (New York);
- City of Auburn (New York);
- Erie County (New York);
- Opportunities for Otsego, Incorporated (New York);
- Queens County Office of the Borough President (New York);
- Suffolk County (New York);
- Town of Pound Ridge (New York);
- Buncombe County (North Carolina);
- Family Violence Prevention Center, Incorporated (North Carolina);
- Oklahoma District Attorneys Council (Oklahoma);
- Deschutes County (Oregon);
- County of Schuylkill (Pennsylvania);
- Metropolitan Government of Nashville-Davidson County (Tennessee);
- Citizens Against Physical and Sexual Abuse, Incorporated (Utah);
- Circle, Incorporated (Vermont);
- HOPE Works, Incorporated (Vermont);
- Empowerhouse (Virginia);
- James City County (Virginia);
- Family Support Center of South Sound (Washington);
- Washington State Department of Commerce (Washington); and
- West Virginia Foundation for Rape Information and Services (West Virginia).
“Improving criminal justice response to domestic violence, sexual assault, dating violence and stalking is the backbone of VAWA and our OVW programs,” said OVW Acting Director Katharine Sullivan. “Funding programs that utilize a coordinated community response to providing victim services and holding offenders accountable is effective in combatting the VAWA four crimes. We are pleased to announce our 2018 awards today and look forward to working with law enforcement, prosecutors, the judiciary, treatment providers and advocates around this country in their quest to bettering their communities.”
Justice Department Awards $18 Million to Address Sexual Violence on CampusesRead the Press Release
The Justice Department’s Office on Violence Against Women (OVW) today announced 57 grants totaling over $18 million to help campuses respond to the crimes of sexual assault, domestic violence, dating violence and stalking.
OVW’s Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence, and Stalking on Campus Program support institutions of higher education in implementing comprehensive, coordinated responses to violent crimes on campus through partnerships with victim services providers and justice agencies. The recipients of these grants will work collaboratively with local law enforcement and prosecutors, campus athletic programs, Greek life organizations, and off-campus victim services, as each plays a critical role in making campuses safer and more just. The awards will make possible a range of services, including specialized training for campus law enforcement, healthcare providers, university personnel and others who are often first responders.
Recipients of awards under OVW’s Campus Grant Program are:
- South Arkansas Community College (Arkansas);
- California State University Bakersfield (California);
- Humboldt State University Sponsored Programs Foundation (California);
- Regents of the University of California, Santa Barbara (California);
- Shasta-Tehama-Trinity Joint Community College District (California);
- Southwestern Community College District (California);
- Albertus Magnus College (Connecticut);
- Asnuntuck Community College (Connecticut);
- Fairfield University (Connecticut);
- District Board of Trustees of Pensacola State College (Florida);
- Florida State University (Florida);
- Miami Dade College (Florida);
- Spelman College (Georgia);
- Dominican University (Illinois);
- Northeastern Illinois University (Illinois);
- Northern Illinois University (Illinois);
- Trustees of Indiana University (Indiana);
- Indian Hills Community College (Iowa);
- Northern Kentucky University (Kentucky);
- St. Joseph’s College (Maine);
- University of Maine at Augusta (Maine);
- Anne Arundel Community College (Maryland);
- Harford Community College (Maryland);
- University of Maryland Eastern Shore (Maryland);
- Bentley University (Massachusetts);
- Kalamazoo College (Michigan);
- Mississippi Valley State University (Mississippi);
- Avila University (Missouri);
- Community College District of Jefferson County (Missouri);
- Salish Kootenai College (Montana);
- College of Saint Mary (Nebraska);
- Board of Regents, University of Nevada, Reno (Nevada);
- Caldwell University, Incorporated (New Jersey);
- Centenary University (New Jersey);
- Passaic County Community College (New Jersey);
- William Paterson University (New Jersey);
- University of New Mexico (New Mexico);
- Medaille College (New York);
- Molloy College (New York);
- Paul Smith’s College of Arts & Sciences (New York);
- St. Bonaventure University (New York);
- St. John’s University, New York (New York);
- Trocaire College (New York);
- Lourdes University (Ohio);
- Miami University (Ohio);
- Tiffin University (Ohio);
- University of Akron (Ohio);
- Lewis & Clark College (Oregon);
- Arcadia University (Pennsylvania);
- Juniata College (Pennsylvania);
- Wilson College (Pennsylvania);
- Augustana College (South Dakota);
- Dakota Wesleyan University (South Dakota);
- University of Texas at El Paso (Texas);
- University of Lynchburg (Virginia);
- Bellevue College (Washington); and
- Edmonds Community College (Washington).
“It is vital to keep our students safe on campuses by supporting programs that take a coordinated community approach to education and prevention of sexual assault on our college and university campuses,” said OVW Acting Director Katharine Sullivan. “OVW is proud of our innovative approach to the development of the campus grant programs. We welcome our new grantees and congratulations to our continuing grantees.”
Department of Justice Reminds the Public to be Aware of Fraud When Disaster Strikes and Report it to the National Center for Disaster FraudRead the Press Release
The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times. The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.
“Committing fraud against natural disaster victims is an inexcusable crime,” said Deputy Attorney General Rod Rosenstein. “We are now in hurricane season, and it is important for people to be on the lookout for fraudsters who seek to profit from natural disasters through identity theft schemes and solicitations for fake charities. The Department of Justice is committed to detecting this type of fraud, and we will aggressively prosecute the offenders. Through our National Center for Disaster Fraud, and in conjunction with our law enforcement partners, we are working to keep Americans from becoming victims of these schemes.”
The recent Carr Fire in California, though largely contained, has caused severe damage; the Pacific Hurricane Season has already proven to be quite active, as demonstrated by Hurricane Lane’s destructive landfall in Hawaii; and we are already 90 days into the 2018 Atlantic Hurricane Season. Unfortunately, and inevitably, natural and man-made disasters will continue to occur across our great nation. These terrible and often tragic events leave many people without food, water, or shelter, and often cause devastating damage to life and property. Nevertheless, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster. They are looking to strike those at their most vulnerable time.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials;
- Identity theft;
- Fraudulent submission of claims to insurance companies and the federal government;
- Fraudulent activity related to solicitations for donations and charitable giving;
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
- Price gouging;
- Contractor Fraud;
- Debris removal fraud;
- Theft, looting, and other violent crime
Numerous U.S. Attorney Offices in districts impacted by recent hurricanes have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.
In ongoing efforts to strengthen partnerships and better inform the American people of its mission, the NCDF has joined with Louisiana Attorney General Jeff Landry, who was recently installed as the President of the National Association of Attorneys General (NAAG), in an effort to spread the message of the NCDF to more of our partners nationwide. We at the NCDF are collaborating with Attorney General Landry and the NAAG to inform every state Attorney General of the mission and function of the NCDF as part of Attorney General Landry’s presidential initiative on disaster fraud.
“The NCDF has an excellent staff of investigators, analysts, call center operators, and managers who are well prepared to handle the anticipated volume of complaints during hurricane season and help ensure that each report of fraud reaches the appropriate investigative agency,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director. “Our collaboration with the National Association of Attorneys General and Attorney General Landry is yet another example of our efforts to better serve the American people before, during and after a natural disaster. Raising public awareness by spreading the message of the NCDF through the state Attorneys General is a great way for the NCDF to reach thousands of people who may one day be subjected to fraudulent schemes.”
“As President of the National Association of Attorneys General, my goal is to use the next 18 months to gather as much intel as possible so we may better prepare state and federal leaders for future crises,” said Louisiana Attorney General Jeff Landry. “We are fortunate to have the NCDF right here in Louisiana and it has served as a great resource to our citizens through hurricanes, floods, and other natural disasters. I am proud to team up with U.S. Attorney Fremin and the great men and women at the NCDF as we continue to look for ways to move our Louisiana and other states forward in terms of emergency preparedness and management.”
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims and before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected] (link sends e-mail). Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Afton Man Charged with Possessing a "Pipe Bomb"Read the Press Release
TULSA, Okla.— Richard C. Cole, 36, of Joplin, Missouri, was charged today by way of criminal complaint with possession of an unregistered destructive device discovered at a residence in Afton, Oklahoma, from which he was recently evicted.
According to the Complaint affidavit, on August 25, Delaware County Sheriff’s deputies were called to 27950 South Highway 25, Unit 27-1, in Afton, OK, when a landlord discovered a suspected improvised explosive device. The Oklahoma Highway Patrol Bomb Squad was contacted, and upon arrival, they observed two, one pound canisters of what appeared to be “mixed Tannerite,” two boxes of ammunition, along with the explosive device in an ammunition container.
United States Attorney Trent Shores stated, “I am thankful no one was injured by the pipe bomb. The Oklahoma Highway Patrol Bomb Squad and the Delaware County Sheriff’s Office are to be commended for quickly handling the situation in order to protect the public and render this destructive device safe.”
Agencies involved in the investigation and arrest included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Oklahoma Highway Patrol Bomb Squad, and the Delaware County Sheriff’s Office. Assistant United States Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma
A Complaint is a set of allegations that, if the case were to proceed to trial, the government would need to prove beyond a reasonable doubt. Defendants are presumed innocent until proven guilty in a court of law.
Co-Owners of Miami Pain Management Clinic Plead Guilty to Conspiracy to Distribute Medically Unnecessary Opioid PrescriptionsRead the Press Release
The husband and wife co-owners of a Miami pain management clinic and a patient recruiter pleaded guilty today to conspiracy to distribute controlled substances for their participation in a scheme to unlawfully distribute thousands of pills of oxycodone.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida; Special Agent in Charge Robert Lasky of the FBI’s Miami Field Office; Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS), and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA) Miami Field Division made the announcement.
“The so-called ‘pain clinic’ owned by David Bosch and Tania Sanchez traded oxycodone prescriptions for cash, resulting in bogus, medically unnecessary prescriptions for at least 7,500 tablets of oxycodone,” said Assistant Attorney General Benczkowski. “Pill mills like this must be shut down. The Department of Justice is committed to reducing the staggering number of opioid overdoses in this country, and holding accountable all responsible parties, from owners of illegal clinics to patient recruiters, for their roles in this deadly scourge.”
David Bosch, 46, and Tania Sanchez, 47, of Hialeah, Florida, and Odalys Abreu, 45, of Miami, Florida, pleaded guilty to one count of conspiracy to distribute controlled substances before U.S. Magistrate Judge John O’Sullivan of the Southern District of Florida. Sentencing has been scheduled for Nov. 7 before U.S. District Judge Joan A. Lenard of the Southern District of Florida. Ledif Acanda Machado, 39, who was charged in this conspiracy, remains a fugitive.
Bosch and Sanchez owned and operated East Medical Office Inc. (“East”), purportedly a pain management clinic located at 3778 West 12th Avenue, in Hialeah, Florida. Bosch incorporated the cash-only clinic in April 2017 and ran it with Sanchez until their arrests on May 3. Bosch and Sanchez hired a physician to be the purported medical doctor of East because they knew the physician would write prescriptions for oxycodone without regard to medical necessity. They paid the physician $125 for each prescription. They also conspired with patient recruiters and drug diverters to distribute oxycodone. Bosch introduced a purported patient recruiter to Machado and Abreu and informed the recruiter that the recruiter could make money by obtaining oxycodone pills from medically unnecessary prescriptions from East and then selling the pills. Additionally, Sanchez filled out fraudulent medical paperwork for purported patients.
Abreu recruited her own patients to visit East. Abreu brought to East at least 18 individuals who paid approximately $250 for each purported “medical consultation” in order to receive controlled substances, especially oxycodone, that were not medically necessary. Abreu’s recruits received prescriptions for at least 5,000 tablets of oxycodone 30 mg. Abreu also offered to purchase pills from another individual whom she believed was a patient recruiter at East.
The charges in an indictment are merely accusations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, HHS-OIG, USSS, and the DEA. Trial Attorney Adam Yoffie 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 HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in 10 locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program over $14 billion.
Attorney General Jeff Sessions Welcomes Joseph H. Hunt as Assistant Attorney General for the Civil DivisionRead the Press Release
Attorney General Jeff Sessions welcomed the confirmation of Joseph H. (Jody) Hunt as the Assistant Attorney General of the Department of Justice’s Civil Division.
“I applaud the Senate for the confirmation of Jody Hunt,” said Attorney General Jeff Sessions. “His Department of Justice career extends for nearly 20 years. He has served as Director of the Federal Programs Branch for 15 years, a part of the Civil Division. This branch litigates some of the Justice Department’s most challenging cases at the trial level. I am deeply indebted to Jody for his outstanding service as my Chief of Staff. He is a man of great integrity, energy, and legal skill. He is uniquely qualified to lead the Department’s largest litigation division, where I am confident he will ably advocate this administration’s legal agenda.”
The Civil Division, which functions as the Government’s law firm, is the largest litigating component of the U.S. Department of Justice. Each year, the Civil Division represents the United States and its agencies, Members of Congress, Cabinet Officers, and other federal employees in tens of thousands of cases. In total, the Civil Division litigates matters on behalf of over 100 different federal agencies.
Most recently, Hunt served as Senior Advisor in the Office of Legal Policy following his service as Chief of Staff and Senior Counselor to Attorney General Sessions. Prior to this appointment, he served for fifteen years as Director of the Federal Programs Branch in the Civil Division, where he supervised the Government’s litigation efforts with respect to numerous legal challenges in federal district courts. His litigation responsibilities have concerned a wide range of matters on behalf of many executive agencies, including the Department of State, the Department of Defense, the Department of the Treasury, and components of the United States Intelligence Community. Hunt is a past recipient of the Attorney General’s Distinguished Service Award.
Prior to joining federal service in 1999, Hunt worked as a lawyer in private practice. Hunt clerked for Judge James H. Hancock of the U.S. District Court for the Northern District of Alabama following his graduation in 1989 from Columbia School of Law.