District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Tennessee Man Pleads Guilty to Filing False Retaliatory Lien and Making A False Claim for Tax RefundRead the Press Release
A Rogersville, Tennessee resident pleaded guilty today to filing a fraudulent multi-million dollar lien against a government employee and filing a false claim for a tax refund, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Brian Leo Snow failed to pay his federal tax liabilities for the years 2000 – 2008 and then became the subject of collection activity by the Internal Revenue Service (IRS). After being held in contempt of court for failing to provide documents and records to the IRS, Snow filed false retaliatory liens claiming that various government officials, including an IRS revenue officer, an Assistant United States Attorney, and a United States District Court Judge for the Eastern District of Tennessee owed him millions of dollars. Each of these government officials had been involved in attempts to collect Snow’s back taxes. Snow also filed three false claims with the IRS claiming over $144 million in tax refunds to which he was not entitled. Snow owes the IRS over $150,000 in taxes.
Sentencing is scheduled for November 28, 2018. Snow faces a statutory maximum sentence of fifteen years in prison. He also faces a term of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of the offices of Treasury Inspector General for Tax Administration and IRS Criminal Investigation, who conducted the investigation, and Tax Division Senior Litigation Counsel Jen E. Ihlo and Trial Attorney Jason M. Scheff, who are prosecuting the case.
President of Michigan Trucking Business Pleads Guilty to Wire Fraud and Failure to File A Tax ReturnRead the Press Release
The president of a Michigan truck hauling business pleaded guilty today in Detroit federal district court to wire fraud and to willfully failing to file a tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to information presented in open court and filed documents, Arshawn Kenard Hall, a resident of Farmington, Michigan, operated a truck hauling business called RAMA Enterprise, Inc. Hall was hired to transport plastic crates filled with automobile parts on behalf of an automobile company. After transporting the parts, Hall was expected to return the empty crates to a facility in Detroit. Instead, Hall diverted these plastic crates and sold them to a plastic recycling company for approximately $460,000. The actual value of the plastic crates that Hall stole was approximately $2,921,000.
In addition, Hall failed to file a 2012 federal income tax return on behalf of RAMA and failed to pay the taxes due. The tax loss associated with Hall’s conduct is $142,069.
U.S. District Judge Terrence G. Berg scheduled sentencing for November 29, 2018. Hall faces a statutory maximum sentence of twenty years in prison for his wire fraud conviction, and one year in prison for failing to file a tax return. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Abigail Burger Chingos and Kenneth C. Vert, who are prosecuting the case, as well as Tax Division Paralegal Tiffany Thompson.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nebraska Man Sentenced to Prison for Viewing Child PornographyRead the Press Release
A Nebraska man was sentenced yesterday to 76 months in prison for accessing with an intent to view child pornography, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Joseph P. Kelly of the District of Nebraska.
Donald Blevins, 65, of Norfolk, Nebraska, pleaded guilty on April 4, to accessing with the intent to view child pornography. U.S. District Court Judge John M. Gerrard of the District of Nebraska sentenced Blevins and also ordered him to serve 10 years of supervised release.
According to the admissions made in connection with his plea, Blevins admitted that he accessed a video conferencing platform multiple times between January 2016 and July 2017 to view child pornography.
The charges are the result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The matter is being prosecuted by Trial Attorney Kaylynn N. Shoop of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Grapevine Texas Man Pleads Guilty to Federal Hate Crime Against an African-American FamilyRead the Press Release
Glenn Eugene Halfin, 64, from Grapevine, Texas, appeared today before U.S. Magistrate Judge Jeffrey L. Cureton in the U.S. District Court for the Northern District of Texas and pleaded guilty to a federal charge of interfering with an African-American family’s housing rights, announced Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
According to court documents, Halfin threatened force, intimidated, and interfered with a family because of their race and occupancy of an apartment that was located directly above his own apartment.
According to documents filed in connection with the guilty plea, on Dec. 19, 2017, Halfin purchased a baby doll at a Wal-Mart in Grapevine, Texas. He took a rope, fashioned it into a noose, and hung the baby doll from the noose. Halfin then hung the rope noose and baby doll on the railing directly in front of the only staircase the family could use to access their apartment. Halfin did so, knowing that this display would be particularly intimidating for the family who had a young daughter. In addition, the defendant referenced in his factual basis repeated intimidation of and interference with the same African-American family on other occasions.
“The Justice Department will not tolerate acts of intimidation and fear, or illegal threats against any individual or family because of their race,” said Acting Assistant Attorney John Gore. “We will continue to prosecute hate crime offenders.”
“No one should be afraid to go home at night,” said U.S. Attorney Erin Nealy Cox. “Our community will not tolerate crimes of intimidation or bigotry, and my office will continue to prosecute all those who persecute others based on their race, color, ethnicity, or religious beliefs.”
Halfin faces a statutory maximum penalty of no more one year in federal prison and a $100,000 fine. His sentencing is scheduled for October 24.
This case was investigated by the FBI and the Grapevine Police Department. The case was prosecuted by Trial Attorney Rebekah Bailey of the Civil Rights Division’s Criminal Section and Assistant United States Attorney Nicole Dana.
Former Head of Nonprofit Sentenced to Prison for Defrauding Mental Health Clinic Out of over $2 MillionRead the Press Release
A former head of a Philadelphia nonprofit mental health clinic was sentenced to 82 months in prison for perpetrating a multiyear fraud scheme through which she stole over $2 million from the clinic that she headed, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania.
On June 23, 2017, a jury found Renee Tartaglione, 62, of Philadelphia, Pennsylvania, guilty of 53 counts of conspiracy, fraud, theft and tax crimes. Today, U.S. District Court Judge Joel H. Slomsky sentenced Tartaglione to serve 82 months in prison followed by three years of supervised release. In addition, Judge Slomsky ordered Tartaglione to forfeit $2,401,850 in proceeds from her scheme and to pay $2,339,691 in restitution to the Pennsylvania Attorney General’s Office, which will hold that money in trust until a successor charitable organization can be identified.
“Renee Tartaglione abused her position at a community clinic and stole over $2 million from important taxpayer-funded programs for individuals in need of mental health treatment,” said Acting Assistant Attorney General Cronan. “Her conviction and sentence should send a clear message that the Department of Justice and our federal and state partners will aggressively work to bring to justice those who defraud institutions devoted to serving individuals in need.”
“The defendant funneled millions of dollars, meant to help economically disadvantaged people with mental health issues, into her own pockets to finance her comfortable lifestyle,” said U.S. Attorney McSwain. “Today’s sentence reinforces the basic precept that nonprofit organizations – especially those that provide important services to the disadvantaged – exist for the people they serve and not for the personal enrichment of their leaders.”
According to the evidence presented at trial, between 2007 and 2015, Tartaglione, as President of the Board of Directors of the Juniata Community Mental Health Clinic (JCMHC), defrauded and stole money from JCMHC through a series of actions designed to benefit her personally at the expense of the clinic. Tartaglione purchased a building on 3rd Street in Philadelphia that housed the clinic and then raised the rent repeatedly, causing the clinic’s rent to increase from $4,500 per month to $25,000 per month.
Additionally, in 2010, Tartaglione’s company, Norris Hancock LLC, acquired an interest in a building on 5th Street, and Tartaglione began causing the clinic to spend money to improve that building. In December 2012, Tartaglione leased the 5th Street building to JCMHC for $35,000 per month for the first two years, and $75,000 per month for the next three years. The rent Tartaglione charged the nonprofit clinic at both buildings was substantially higher than market rates.
None of the JCMHC rent increases or the lease agreements were approved by JCMHC’s Board of Directors. The evidence further showed that Tartaglione and her co-conspirators created false and fictitious documents in an attempt to make the transactions appear legitimate.
This case was investigated by the FBI, IRS Criminal Investigation, and the Philadelphia Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney Bea Witzleben of the Eastern District of Pennsylvania and Trial Attorney Peter N. Halpern of the Criminal Division’s Public Integrity Section.
DOJ Office of Professional Responsibility (OPR) Issues Decision on Pretrial Diversion ComplaintRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced today that the Office of Professional Responsibility (OPR) for the United States Department of Justice has concluded an inquiry into the pretrial diversion practices of the United States Attorney’s Office in the District Court of Guam. The OPR inquiry “revealed no evidence” that the pretrial diversion decisions of the office involved any prohibited or inappropriate factors.
The inquiry was initiated by the District Court of Guam during sentencing proceedings for two Chinese nationals in United States v. Lu et al., No. 17-CR-00041 (D. Guam). The defendants had been arrested after arriving on Guam from Los Angeles with over 118 counterfeit credit cards from foreign banks. The defendants were charged with Possession of Fifteen or More Counterfeit or Unauthorized Access Devices, in violation of 18 U.S.C. Section 1029(a)(3), a Class C felony. The Court questioned the applicability of pretrial diversion for the defendants. Diversion is an alternative to criminal prosecution that enables certain offenders to avoid traditional criminal proceedings in favor of a program of supervision and services administered by United States Probation and Pretrial Services. If the program is successfully completed, the charges against a defendant are dismissed. The U.S. Attorney declined to offer pretrial diversion in the matters before the District Court.
In February 2018, the Court announced that it would request the Department of Justice to investigate whether there was “disparate treatment” by the U.S. Attorney’s Office in its handling of pretrial diversion offers. OPR reviewed the Court’s concerns and the relevant pretrial diversion decisions against the limits on prosecutorial discretion set forth in the Department’s United States Attorneys’ Manual Section 9-27.260, which prohibits prosecutors from taking into consideration a “person’s race, religion, gender, ethnicity, national origin, sexual orientation, or political association, activities, or beliefs.” OPR found no evidence of unethical conduct.
United States Attorney Anderson states, “We appreciated the opportunity to fully cooperate with OPR and respond to the Court’s concerns. Prosecutorial discretion, which includes the decision on whether pretrial diversion is appropriate in any given case, has an important function in the criminal justice system. The U.S. Attorney’s Office respects the limitations on its discretion and routinely relies on the Department of Justice’s guidelines in making diversion decisions. Our office will continue to consider criminal offenders for this type of disposition on a case-by-case basis.”
Attorney General Jeff Sessions Announces the Formation of Operation Synthetic Opioid Surge (S.O.S.)Read the Press Release
Attorney General Jeff Sessions today announced Operation Synthetic Opioid Surge (S.O.S.), a new program that seeks to reduce the supply of deadly synthetic opioids in high impact areas and to identify wholesale distribution networks and international and domestic suppliers.
As part of Operation S.O.S., the Department will launch an enforcement surge in ten districts with some of the highest drug overdose death rates. Each participating United States Attorney’s Office (USAO) will choose a specific county and prosecute every readily provable case involving the distribution of fentanyl, fentanyl analogues, and other synthetic opioids, regardless of drug quantity. The surge will involve a coordinated DEA Special Operations Division operation to insure that leads from street-level cases are used to identify larger scale distributors. Operation S.O.S. was inspired by a promising initiative of the United States Attorney’s Office in the Middle District of Florida involving Manatee County, Florida.
"We at the Department of Justice are going to dismantle these deadly fentanyl distribution networks. Simply put, we will be tireless until we reduce the number of overdose deaths in this country. We are going to focus on some of the worst counties for opioid overdose deaths in the United States, working all cases until we have disrupted the supply of these deadly drugs," Attorney General Sessions said. "In 2016, synthetic opioids killed more Americans than any other kind of drug. Three milligrams of fentanyl can be fatal--that's not even enough to cover up Lincoln's face on a penny. Our prosecutors in Manatee County, Florida have shown that prosecuting seemingly small synthetic opioids cases can have a big impact and save lives, and we want to replicate their success in the districts that need it most. Operation S.O.S.—and the new prosecutors who will help carry it out—will help us put more traffickers behind bars and keep the American people safe from the threat of these deadly drugs."
In addition, the Organized Crime Drug Enforcement Task Forces (OCDETF) Executive Office will send an additional two-year term Assistant United States Attorney to each participating district to assist with drug-related prosecutions.
The ten participating districts are:- Eastern District of California
- Eastern District of Kentucky
- District of Maine
- District of New Hampshire
- Northern District of Ohio
- Southern District of Ohio
- Western District of Pennsylvania
- Eastern District of Tennessee
- Northern District of West Virginia
- Southern District of West Virginia
In Manatee County, a county just south of Tampa with a population of about 320,000, overdoses and deaths skyrocketed in 2015 (780 overdoses/84 opioid related deaths) and 2016 (1,287 overdoses/123 opioid related deaths). In summer of 2016, local law enforcement reported frequent, street-level distribution of fentanyl and carfentanil for the first time.
To combat this crisis, the Middle District of Florida committed to prosecuting every readily provable drug distribution case involving synthetic opioids in Manatee County regardless of drug quantity. The effort resulted in the indictments of forty five traffickers of synthetic opioids. Further, from the last six months of 2016 to the last six months of 2017, overdoses dropped by 77.1% and deaths dropped by 74.2%. Overall, the Manatee County Sheriff’s Office went from responding to 11 overdoses a day to an average now of less than one per day.Former Prisoner Transport Officer Indicted for Sexual Assault and Possessing a Firearm in Furtherance of His Sexual AssaultRead the Press Release
A federal grand jury in Riverside, California, returned a five-count indictment against Eric Scott Kindley, 50, a private prisoner transport officer, for crimes related to his sexual assaults of two different females in his custody during two different transports, and for brandishing his firearm during one of the sexual assaults.
Count One of the indictment charges Kindley with committing a civil rights offense on July 26, 2012, that included aggravated sexual abuse and kidnapping. Counts Two, Three, and Four charge Kindley with committing civil rights offenses on Jan. 26, 2017, against a second female that included aggravated sexual abuse. Count Two also alleges that Kindley’s crime resulted in bodily injury and included kidnapping and the use of a dangerous weapon. Count Five charges Kindley with knowingly brandishing and using a firearm during and in relation to a crime of violence.
Kindley was previously indicted on Sept. 12, 2017, in Little Rock, Arkansas, for committing similar offenses related to his sexual assault of a third female in his custody. That indictment also charges Kindley with possessing his firearm in furtherance of that sexual assault.
If convicted of the charges in the most recent indictment, Kindley faces a mandatory minimum sentence of seven years in prison for brandishing his firearm, and a maximum sentence of life in prison. If convicted of the charges pending in Arkansas, Kindley faces a mandatory minimum of sentence of five years in prison for possession of the firearm, and a maximum sentence of life in prison. If Kindley is convicted of the firearms offenses in both indictments, he faces a mandatory minimum sentence of 25 years in prison, consecutive to any other sentence he receives.
This investigation remains ongoing. Anyone with additional information is encouraged to call the Phoenix Division of the FBI at (623) 466-1999, or email the Criminal Section of the Civil Rights Division at the U.S. Department of Justice at [email protected].
An indictment is merely a formal accusation of criminal conduct, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Phoenix Division of the Federal Bureau Investigation and is being prosecuted by Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice.
Department of Justice, Bureau of Consumer Financial Protection, U.S. Securities and Exchange Commission, Federal Trade Commission Announce Task Force on Market Integrity and Consumer FraudRead the Press Release
Deputy Attorney General Rod Rosenstein today announced the establishment of a new Task Force on Market Integrity and Consumer Fraud. The Task Force, which is formed pursuant to Presidential Executive Order, will provide guidance for the investigation and prosecution of cases involving fraud on the government, the financial markets, and consumers, including cyber-fraud and other fraud targeting the elderly, service members and veterans, and other members of the public; procurement and grant fraud; securities and commodities fraud, as well as other corporate fraud, with particular attention to fraud affecting the general public; digital currency fraud; money laundering, including the recovery of proceeds; health care fraud; tax fraud; and other financial crimes.
Deputy Attorney General Rosenstein was joined in the announcement by Acting Director Mick Mulvaney of the Bureau of Consumer Financial Protection, Chairman Jay Clayton of the Securities and Exchange Commission, and Chairman Joe Simons of the Federal Trade Commission.
“Fraud committed by companies and their employees has a devastating impact on American citizens in the financial markets, the health care sector, and elsewhere,” said Deputy Attorney General Rosenstein. “The President’s order directs the Task Force to invite participation from our law enforcement partners at many departments and agencies. By working together, we can achieve more effective and efficient outcomes. Drawing on our pooled resources, including subject-matter expertise, data repositories, and analysts and investigators, we can identify and stop fraud on a wider scale than any one agency acting alone.”
“As Acting Director of the Bureau, one of my top priorities has been to go after bad actors,” said Acting Director Mick Mulvaney of the Bureau of Consumer Financial Protection. “The Bureau takes its mandate to enforce the law seriously, and the Bureau will continue to apply the law to achieve this end of combatting fraud against Americans. The recent settlement with Wells Fargo is a great example of the Bureau coordinating closely with sister regulators to remedy legal violations. Interagency cooperation is incredibly important for these complex issues, as criminals do not stay neatly within state lines or even national borders. This task force is an example of the growing cooperation of the Bureau’s work with other federal and state authorities to combat a multitude of bad actors out there today.”
“At the SEC we work every day to protect Main Street investors,” said SEC Chairman Clayton. “This Task Force will allow us to build on the close partnerships we have with our fellow regulators and law enforcement agencies to deter and combat retail fraud.”
“Stopping fraud against consumers is at the heart of the FTC’s mission,” said FTC Chairman Joe Simons. “To combat these problems, the Commission has developed a multi-faceted strategy: we bring enforcement actions to protect consumers; and we engage in education initiatives to help the general public, the elderly and service members detect and avoid scams. The FTC looks forward to further collaboration with the Department of Justice and other agencies through participation in this Task Force, so we can leverage our skills and resources to protect as many consumers as possible.”
The Task Force will be led by the Deputy Attorney General, who serves as Chair, and the Associate Attorney General, who serves as Vice Chair. In the performance of its functions, the Task Force is directed to invite participation from the Departments of Treasury, Defense, Health and Human Services, Housing and Urban Development, Energy, Education, Veterans Affairs, and Homeland Security, as well as the Small Business Administration, the Board of Governors of the Federal Reserve System, the Social Security Administration, the United States Agency for International Development, the Bureau of Consumer Financial Protection, the Federal Trade Commission, the Securities and Exchange Commission, the General Services Administration, the National Credit Union Administration, the Commodity Futures Trading Commission, the Board of Directors of the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the Office of the Comptroller of the Currency, and the Postal Inspection Service.
Department of Justice Announces Regulatory Steps to Address Opioid EpidemicRead the Press Release
The Department of Justice today announced the finalization of an April proposal to improve the Drug Enforcement Administration’s ability to control the diversion of dangerous drugs in the midst of the national opioid crisis. Announced in April by Attorney General Jeff Sessions, the final rule sent for publication today in the Federal Register establishes that DEA will take into consideration the extent that a drug is diverted for abuse when it sets its annual opioid production limits.
If DEA believes that that a particular opioid or a particular company’s opioids are being diverted for misuse, this allows DEA to reduce the amount that can be produced in a given year. These revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potentially addictive drugs while ensuring that the country has enough opioids for genuine medical, scientific, research and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Sessions said. "To help end it, DEA must make sure that we prevent diversion and abuse of prescription opioids. Today's new rule, by taking diversion of these opioids into account, will allow the DEA to be more responsive to the facts on the ground. More importantly, it will help us stop and even prevent diversion from taking place. The American people can be confident that we are now better equipped to protect them from dangerous drugs and that this rule brings us one step closer to finally ending this unprecedented crisis."
“These common-sense actions directly respond to the national opioid epidemic by allowing DEA to use drug diversion as a basis to evaluate whether a drug’s production should be reduced,” said DEA Acting Administrator Uttam Dhillon. “This also opens the door for increased communication and better information sharing between DEA and individual states, as we work together to address the opioid problem plaguing our country.”
The final rule enhances the roles for the state attorneys general. It requires DEA to share notices of proposed aggregate production quotas, and final aggregate production quota orders, to the state attorneys general. It also allows for a hearing if necessary to resolve an issue of material fact raised by a state’s objection to a proposed aggregate production quota as excessive in relation to legitimate U.S. need.
DEA also announced that the final rule allows DEA to consider relevant information from the Department of Health and Human Services, Food and Drug Administration, the Centers for Disease Control, and the Centers for Medicare and Medicaid Services, as well as relevant information from the states.
Following April’s announcement of the proposed rule changes, DEA received more than 1,600 public comments in response.
NOTE: To view the advance text of the final rule as approved by the Acting Administrator and submitted for publication in the Federal Register click here.
Attorney General Jeff Sessions Welcomes Brian A. Benczkowski as Assistant Attorney General for the Criminal DivisionRead the Press Release
Attorney General Jeff Sessions today welcomed the confirmation of Brian Allen Benczkowski as the Department of Justice’s Assistant Attorney General for the Criminal Division.
“Brian is an outstanding lawyer with a diverse public service and criminal law background spanning over 20 years,” said Attorney General Sessions. “This will be the sixth senior position Brian has held at the Department, and we are fortunate to have someone with his breadth of experience and strong leadership skills willing to serve again. At a time like this—with surging violent crime and an unprecedented drug epidemic—this position is especially important.”
Mr. Benczkowski’s diverse legal background including over 10 years of public service experience in the federal government in key leadership positions. He previously served as the Chief of Staff for the Office of the Attorney General and the Office of the Deputy Attorney General from 2008 to 2009. As the principal legal, policy and political advisor to the two senior leaders of the Department of Justice, he played an integral role in overseeing the overall direction of the Department, including operational, policy and public relations efforts. Mr. Benczkowski, 48, has also served as Principal Deputy Assistant Attorney General for Legislative Affairs, where he managed the Department’s relationship with Congress. During that time, he was responsible for directing the Department's response to congressional investigations and requests for information and documents, and preparing numerous witnesses and nominees for testimony before Congress. Mr. Benczkowski also served as chief of staff at the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and staff director and senior counsel to the Justice Department’s Office of Legal Policy.
Prior to his nomination by the President to serve as the Assistant Attorney General for the Criminal Division, Mr. Benczkowski served as a partner in a large Washington, DC law firm where Mr. Benczkowski’s practice focused on white-collar criminal defense as well as government and internal investigations. Mr. Benczkowski received his J.D., with high honors, from the Washington University School of Law in St. Louis, Missouri, and his B.A. from the University of Virginia.Justice Department Files Sexual Harassment Lawsuit Against Owner of Cullman, Alabama, Rental PropertyRead the Press Release
The Justice Department today announced that it has filed a lawsuit alleging that Randy Hames, a residential property owner and landlord in Cullman, Alabama, subjected female tenants to egregious sexual harassment in violation of the Fair Housing Act. Along with Randy Hames, the Department’s complaint names his residential property company, Hames Marina, LLC, as a defendant.
The complaint, filed in the U.S. District Court for the Northern District of Alabama, alleges that since at least 2011, Hames sexually harassed numerous women who lived in the defendants’ residential property. The suit alleges that Hames’s conduct included demanding or pressuring female tenants to engage in sexual acts with him in exchange for rent or to prevent eviction; evicting female tenants when they refused his advances; making female tenants feel unsafe by stalking them and entering their residences without permission; and making unwelcome sexual comments and advances.
“Subjecting female tenants to harassment and demands for sex is offensive and illegal,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue its vigorous enforcement of the Fair Housing Act against landlords who engage in this reprehensible conduct. No woman should feel unsafe in her own home.”
“The alleged behavior of Randy Hames is abhorrent and repulsive. We will not let women, or any person, in our district be threatened, harassed, or retaliated against by landlords,” said U.S. Attorney Jay E. Town for the Northern District of Alabama. “The Fair Housing Act is an extraordinary tool that allows the Department of Justice to protect all tenants from egregious misconduct, like sexual harassment, and we will continue to strongly enforce all violations of it.”
The Justice Department’s Sexual Harassment in Housing Initiative (SHHI) was launched in October 2017 and expanded nationally in April 2018. The initiative specifically seeks to increase the Department’s efforts to protect individuals from harassment by landlords, property managers, maintenance workers, security guards, loan officers, or other people who have control over housing. The Justice Department has filed or settled 10 sexual harassment cases and has recovered over $1.6 million for victims of sexual harassment in housing since Jan. 20, 2017. Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct. The allegations must be proven in federal court.
Individuals who believe that they may have been victims of sexual harassment or discrimination at rental dwellings owned or operated by Randy Hames or Hames Marina, or who have other information that may be relevant to this case, should contact the Housing Discrimination Tip Line, by calling 1-800-896-7743, pressing 1 to continue in English, and selecting mailbox 7 to leave a message.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment in housing should call the Justice Department at 1-844-380-6178, send an e-mail to [email protected], or contact the Department of Housing and Urban Development (HUD) at 1-800-669-9777. If you have information or questions about any other housing discrimination, you can contact the Justice Department at 1-800-896-7743.
Health Quest and Putnam Hospital Center to Pay $14.7 Million to Resolve False Claims Act AllegationsRead the Press Release
Health Quest Systems, Inc. and certain of its subsidiaries (Health Quest) and Putnam Health Center (PHC) have agreed to pay over $14.7 million to resolve allegations of violations of the False Claims Act by submitting inflated and otherwise ineligible claims for payment, the Justice Department announced today. New-York based Health Quest is a family of integrated hospitals and healthcare providers that deliver surgical, medical and home health care services. PHC is a Health Quest subsidiary hospital based in Carmel Hamlet, New York.
“This resolution is a testament to our deep commitment to protecting the integrity of federally- funded healthcare programs,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “We are determined to hold accountable healthcare providers that knowingly claim taxpayer funds to which they are not entitled.”
In the settlement announced today, Health Quest and PHC admitted, acknowledged, and accepted responsibility for certain facts involving the submission of improper claims for various health-related services, including the following:
From April 1, 2009 through June 23, 2015, Health Quest submitted claims for evaluation and management services but did not sufficiently document the services to support the level of service billed. As a result, the services were billed two levels higher than supported by the medical record.
From April 1, 2011 through August 2014, Health Quest submitted claims for home health services that lacked sufficient medical records to support the claim, including documentation of a face-to-face encounter with a physician.
From March 1, 2014 through December 31, 2014, Health Quest subsidiary hospital, PHC, submitted allegedly false claims for inpatient and outpatient services referred to PHC by two orthopedic physicians, in alleged violation of the Physician Self-Referral Law. The two physicians had a direct financial relationship with PHC for providing administrative services and received compensation from PHC. The United States alleged their compensation exceeded the fair market value for the services, and thereby violated the Physician Self-Referral Law, which prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper compensation arrangement. The United States further alleged that one purpose of the excessive compensation was to induce the above referrals to PHC, in violation of the Anti-Kickback Statute.
“Today’s settlement holds Heath Quest responsible for false billings to federally funded health care programs, as well as claims tainted by a hospital’s payments to two physicians for administrative services where it appears that one purpose of those payments was to improperly induce referrals. Hospitals and providers must be vigilant to make sure that claims accurately reflect medical services provided and are supported by sufficient documentation. We will continue to investigate whistleblower complaints vigorously to protect public funds,” said United States Attorney Grant C. Jaquith for the Northern District of New York.
As part of the settlements announced today, Health Quest will pay an additional $895,427 to the State of New York, which jointly funds the State’s Medicaid program with the federal government.
Contemporaneously with the False Claims Act settlement, Health Quest also agreed to enter into a Corporate Integrity Agreement (CIA) with HHS-OIG to address future compliance.
“Government health program dollars are precious and need to be carefully guarded,” said Scott J. Lampert, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “Working closely with our law enforcement partners we will fight for the integrity of these taxpayer-funded programs.”
The settlement resolves three lawsuits brought by former employees of Health Quest under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. Tim Cleary will receive $1,893,092, John Betaudier and Carolyn Carroll will receive, collectively, $56,266, and Gregory Folta will receive at least $875,546.
The lawsuits, are captioned: United States, et al. ex rel. Folta v. Health Quest Systems, Inc., et al., No. 1:15-cv-396 (N.D.N.Y.); United States, et al. ex rel. Cleary v. Health Quest Systems, Inc., et al., No. 16-cv-76 (N.D.N.Y.); and United States, et al. ex rel. Betaudier and Carroll v. Health Quest Medical, Practice, P.C., et al., No. 1:16-cv-1344 (N.D.N.Y.).
The federal government’s resolution of these matters illustrate its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
These matters were investigated by the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office for the Northern District of New York; HHS-OIG; the FBI; and the U.S. Postal Service Office of Inspector General.
Department of Justice Seeks to Terminate “Legacy” Antitrust Judgments in Federal District Court in Washington, D.C.Read the Press Release
The Department of Justice’s Antitrust Division today filed a motion and supporting papers, seeking to terminate 19 “legacy” judgments in the District Court for the District of Columbia. Today’s court filing is part of the Antitrust Division’s effort to terminate decades-old antitrust judgments that no longer serve their original purpose.
“Today we have taken an important next step toward eliminating antitrust judgments that no longer protect competition,” said Assistant Attorney General for Antitrust, Makan Delrahim. “Today’s filing is the first of many that we will make in courts around the country in our effort to terminate obsolete judgments.”
In its motion filed today, the Antitrust Division explained that perpetual judgments rarely continue to protect competition, and those that are more than ten years old should be terminated absent compelling circumstances. Other reasons for terminating the judgments include that essential terms of the judgment have been satisfied, most defendants likely no longer exist, the judgment largely prohibits that which the antitrust laws already prohibit, and market conditions likely have changed. Each of these reasons suggests the judgments no longer serve to protect competition.
The Antitrust Division announced in April its initiative to terminate legacy antitrust judgments, stating that it would review all such judgments to identify those that no longer serve to protect competition. In its prior announcement, the Antitrust Division set forth the process by which it would seek the termination of outdated judgments. It also established a new public website (https://www.justice.gov/atr/JudgmentTermination) to serve as the primary source of information for the public regarding the initiative.
At the time that the Antitrust Division announced the initiative, it posted on its public website the legacy judgments in federal district court in Washington, D.C. and in Alexandria, Virginia. After a 30-day public comment period, the Antitrust Division concluded that termination of these 19 judgments is appropriate.
Since the announcement of its initiative, the Antitrust Division has posted for public comment judgments in 19 additional federal district courts. It will continue to post judgments periodically as review of those judgments by Antitrust Division attorneys is completed.
Members of the public are encouraged regularly to check the Antitrust Division’s Judgment Termination page on its website, www.justice.gov/atr/JudgmentTermination, for updates. Members of the public also may subscribe to the mailing list (https://public.govdelivery.com/accounts/USDOJ/subscriber/new) to receive notice of new postings to the website, including judgments that the Division has identified as appropriate for termination.
$100 Million Settlement Will Speed Cleanup Work at Centredale Manor Superfund Site in North Providence, R.I.Read the Press Release
The U.S. Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Rhode Island Department of Environmental Management (RIDEM) announced today that two subsidiaries of Stanley Black & Decker Inc.—Emhart Industries Inc. and Black & Decker Inc.—have agreed to clean up dioxin contaminated sediment and soil at the Centredale Manor Restoration Project Superfund Site in North Providence and Johnston, Rhode Island.
“We are pleased to reach a resolution through collaborative work with the responsible parties, EPA, and other stakeholders,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department's Environment and Natural Resources Division . “Today’s settlement ends protracted litigation and allows for important work to get underway to restore a healthy environment for citizens living in and around the Centredale Manor Site and the Woonasquatucket River.”
“This settlement demonstrates the tremendous progress we are achieving working with responsible parties, states, and our federal partners to expedite sites through the entire Superfund remediation process,” said EPA Acting Administrator Andrew Wheeler. “The Centredale Manor Site has been on the National Priorities List for 18 years; we are taking charge and ensuring the Agency makes good on its promise to clean it up for the betterment of the environment and those communities affected.”
“Successfully concluding this settlement paves the way for EPA to make good on our commitment to aggressively pursue cleaning up the Centredale Manor Superfund Site,” said EPA New England Regional Administrator Alexandra Dunn. “We are excited to get to work on the cleanup at this site, and get it closer to the goal of being fully utilized by the North Providence and Johnston communities.”
“We are pleased that the collective efforts of the State of Rhode Island, EPA, and DOJ in these negotiations have concluded in this major milestone toward the cleanup of the Centredale Manor Restoration Superfund site and are consistent with our long-standing efforts to make the polluter pay,” said RIDEM Director Janet Coit. “The settlement will speed up a remedy that protects public health and the river environment, and moves us closer to the day that we can reclaim recreational uses of this beautiful river resource.”
The settlement, which includes cleanup work in the Woonasquatucket River (River) and bordering residential and commercial properties along the River, requires the companies to perform the remedy selected by EPA for the Site in 2012, which is estimated to cost approximately $100 million, and resolves longstanding litigation.
The cleanup remedy includes excavation of contaminated sediment and floodplain soil from the Woonasquatucket River, including from adjacent residential properties. Once the cleanup remedy is completed, full access to the Woonasquatucket River should be restored for local citizens. The cleanup will be a step toward the State’s goal of a fishable and swimmable river. The work will also include upgrading caps over contaminated soil in the peninsula area of the Site that currently house two high-rise apartment buildings. The settlement also ensures that the long-term monitoring and maintenance of the site, as directed in the remedy, will be implemented to ensure that public health is protected.
Under the settlement, Emhart and Black & Decker will reimburse EPA for approximately $42 million in past costs incurred at the Site. The companies will also reimburse EPA and the State of Rhode Island for future costs incurred by those agencies in overseeing the work required by the settlement. The settlement will also include payments on behalf of two federal agencies to resolve claims against those agencies. These payments, along with prior settlements related to the Site, will result in a 100 percent recovery for the United States of its past and future response costs related to the Site.
Litigation related to the Site has been ongoing for nearly eight years. While the Federal District Court found Black & Decker and Emhart to be liable for their hazardous waste and responsible to conduct the cleanup of the Site, it had also ruled that EPA needed to reconsider certain aspects of that cleanup. EPA appealed the decision requiring it to reconsider aspects of the cleanup. This settlement, once entered by the District Court, will resolve the litigation between the United States, Rhode Island, and Emhart and Black and Decker, allowing the cleanup of the Site to begin.
The Site spans a one and a half mile stretch of the Woonasquatucket River and encompasses a nine-acre peninsula, two ponds and a significant forested wetland. From the 1940s to the early 1970s, Emhart’s predecessor operated a chemical manufacturing facility on the peninsula and used a raw material that was contaminated with 2,3,7,8-tetrachlorodibenzo-p-dioxin, a toxic form of dioxin. The Site property was also previously used by a barrel refurbisher. Elevated levels of dioxins and other contaminants have been detected in soil, groundwater, sediment, surface water and fish.
The Site was added to the National Priorities List (NPL) in 2000, and in December 2017, EPA included the Centredale Manor Restoration Project Superfund Site on a list of Superfund sites targeted for immediate and intense attention. Several short-term actions were previously performed at the Site to address immediate threats to the residents and minimize potential erosion and downstream transport of contaminated soil and sediment. This settlement is the latest agreement EPA has reached since the Site was listed on the NPL. Prior agreements addressed the performance and recovery of costs for the past environmental investigations and interim cleanup actions from Emhart, the barrel reconditioning company, the current owners of the peninsula portion of the Site, and other potentially responsible parties.
The Consent Decree, lodged in the U.S. District Court of Rhode Island, will be posted in the Federal Register and available for public comment for a period of 30 days. The Consent Decree can be viewed on the Justice Department website: www.justice.gov/enrd/Consent_Decrees.html.
EPA information on the Centredale Manor Superfund Site: www.epa.gov/superfund/centredale.
Pollock prisoner from California sentenced to 20 years for attempt to kill prison staffRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today that an inmate originally from California was sentenced to 240 months in prison for attempting to kill two staff members at the U.S. Penitentiary in Pollock.
Charles Lee White, 47, an inmate at the U.S. Penitentiary in Pollock, Louisiana, and who was formerly from Vallejo, California, was sentenced by U.S. District Judge Dee D. Drell on two counts of attempted murder of a federal employee. He was also sentenced to three years of supervised release. During a three-day trial that ended March 28, 2018, evidence admitted showed White and another inmate attacked two prison staff members on January 13, 2017. The staff members were conducting a health and welfare inspection of a housing unit when they noticed an inmate’s cell had a large surplus of commissary items and contraband items. The staff members decided to do a more detailed search of the cell, and were in the process of searching, when one inmate, a member of the California Crips, confronted the staff members. The staff members told the inmate to leave. He left for a while and then confronted the staff members a second time. Both staff members came out of the cell with the first staff member backing out of the cell while facing the inmate who had assumed a fighting stance and was refusing commands from staff. The second staff member was behind the inmate.
While the first staff member was facing the inmate, White, also a California Crip, snuck up from behind, punched the first staff member in the back of the head knocking him to the ground. White then pulled a homemade weapon, otherwise known as a shank, and stabbed the first staff member multiple times in the torso, arm and shoulder while saying he was going to kill him. The other inmate attacked the second staff member punching and biting him. After stabbing the first staff member, White stabbed the second staff member while he was struggling with the other inmate. White stabbed the second staff member in the torso and back and stabbed the other inmate in the arm. At this point, other staff responded and sprayed White with pepper spray. White refused to surrender, and continued to move around the unit with the shank in his hand. White returned to the second staff member and stabbed him again. Additional staff responded to the housing unit, gave commands to surrender, and sprayed both inmates with pepper spray after the commands were ignored. Both inmates were finally detained, and the shank was recovered as evidence. The inmates were taken to medical and assessed for injuries, which White had none. The other inmate refused medical treatment from the Pollock medical staff. The two staff members were transported to the emergency room at a local hospital to assess and treat their injuries and survived.
White is already serving a life sentence for a RICO conviction that included counts of murder and attempted murder.
The FBI and the U.S. Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Mike O’Mara prosecuted the case.
Former Powell County Detention Center Deputy Indicted for Conspiring with Inmates to Assault Victim and Lying to Federal InvestigatorsRead the Press Release
A federal grand jury in Lexington, Kentucky, today returned a four-count indictment charging Jamie Derickson, a former deputy of the Powell County Detention Center, with violating the civil rights of an arrestee by conspiring with inmates at the detention center to assault the arrestee in a jail cell. Derickson is also charged with lying to the FBI about the assault.
The indictment alleges that on Aug. 17, 2016, Derickson conspired with several inmates in the jail, agreeing that the inmates would assault the arrestee after Derickson placed him in the cell. When the arrestee entered the cell, the inmates assaulted the arrestee, causing bodily injury. The indictment also alleges that Derickson violated the arrestee’s constitutional rights by aiding and abetting the inmates’ assault of the arrestee, and by being deliberately indifferent to the known serious risk that the victim would be assaulted. Finally, the indictment alleges that Derickson later lied to special agents of the FBI when he claimed to them that, at the time he placed the arrestee in the cell, he did not know that the inmates were going to assault him.
If convicted, Derickson faces a maximum term of imprisonment of 10 years for each civil rights offense and five years for lying to investigators.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
The FBI conducted the investigation. Assistant United States Attorney Hydee Hawkins of the Eastern District of Kentucky and Trial Attorney Zachary Dembo of the Civil Rights Division are prosecuting the case.
United States Announces Settlement with Kentucky Ensuring Compliance with Voter Registration List Maintenance RequirementsRead the Press Release
The Department of Justice today announced that it recently entered into a settlement with the Commonwealth of Kentucky, the Kentucky State Board of Elections, and the Kentucky Secretary of State, resolving the Department’s claims that Kentucky was not complying with the voter registration list maintenance procedures set forth in Section 8 of the National Voter Registration Act of 1993 (NVRA). Under the terms of the settlement, Kentucky will develop and implement a general program of statewide voter list maintenance that makes a reasonable effort to remove the names of registrants who have become ineligible due to a change in residence in accordance with Section 8 of the NVRA and state law.
The NVRA includes requirements for maintaining voter registration lists in elections for federal office. One of these NVRA requirements is that states make a reasonable effort to remove registrants who have become ineligible due to having died or moved. At the same time, the NVRA has protections to ensure that eligible voters remain on the rolls, including specific procedures that states must follow before removing voters who have moved to a new jurisdiction.
The Justice Department’s investigation found that, since 2009, Kentucky has not sent statutorily-required notices to registrants under the change-of-address process contemplated by the NVRA and state law. The investigation also found that, since 2015, Kentucky has not removed registrants through this statutorily-prescribed process when the registrants have moved to a new jurisdiction without notifying election officials.
The settlement requires the Kentucky State Board of Elections to create and implement a comprehensive plan, setting forth specific list maintenance procedures to be followed in the future, in accordance with the requirements and voter protections set forth by the NVRA. Such procedures must include a plan to obtain and use change-of-address information at least once per year. The comprehensive plan must also include procedures for sending a canvass mailing this summer to identify through returned mail those registrants who may have moved, as well as public outreach practices to educate voters about the importance of updating their voter registration when they change residences. The agreement also requires reporting of various information and data relating to the State Board’s list maintenance activities. The parties will submit the settlement to a federal judge for court approval.
“The NVRA’s list maintenance procedures ensure accurate and current voter registration rolls,” said Acting Assistant Attorney General John Gore. “The Civil Rights Division commends Kentucky for working with the Division to ensure its voter registration list accurately reflects its eligible registrants, consistent with the protections and procedures of the NVRA.”
On June 28, 2017, the Justice Department sent letters to all 44 states covered by the NVRA requesting information regarding their efforts to comply with Section 8’s list maintenance requirements. The Department opened this investigation after receiving Kentucky’s response to that letter. This settlement is the Department’s first resolution of a Section 8 matter since it sent the letters.
More information about the National Voter Registration Act and other federal voting laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section. Complaints about voter registration practices may be reported to the Civil Rights Division at 1-800-253-3931.
Two Freight Forwarding Executives Arrested in MiamiRead the Press Release
Two executives have been arrested in Miami on charges of conspiring to fix prices for international freight forwarding services, the Department of Justice announced.
A criminal complaint was unsealed on June 29 in U.S. District Court for the Eastern District of Louisiana against Roberto Dip and Jason Handal. Dip is the owner and CEO, and Handal is a manager, of a freight forwarding company that operates in ports throughout the United States, including New Orleans. At a detention hearing before a magistrate judge in Florida on July 3, Dip was ordered detained pending trial, and Handal was released on conditions including a $500,000 personal surety bond.
According to the criminal complaint, Dip and Handal participated in a conspiracy among freight forwarding companies from at least as early as March 2014 until at least March 2015. Freight forwarders arrange for and manage the shipment of goods, including by receiving, packaging, and otherwise preparing cargo destined for international shipment.
“As these arrests show, the Division and its law enforcement partners are committed to prosecuting senior executives who conspire to cheat American customers in vital international industries,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.
According to the affidavit filed in support of the criminal complaint, the conspirators met at several locations in Honduras and the United States, including New Orleans. At these meetings, the conspirators discussed and agreed to raise prices charged to U.S. customers, to be implemented by establishing “commissions” in port cities throughout the United States to coordinate and agree on the specific rates charged to customers in each port. According to the affidavit, this conduct is memorialized in emails and other documents. Emails allegedly show that Dip and Handal were aware that their conduct was in violation of U.S. antitrust laws and that they instructed co-conspirators to avoid leaving written evidence of their conduct.
Charges contained in a criminal complaint are merely allegations that a defendant has committed a violation of criminal law. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The ongoing investigation into price-fixing in the international freight forwarding industry is being conducted by the Antitrust Division’s Washington Criminal I Section, the FBI’s International Corruption Unit, and the FBI’s New Orleans Division. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.
Six North Carolina Residents Indicted for Firearm, Drug, and Robbery OffensesRead the Press Release
A federal grand jury sitting in Greensboro, North Carolina last week returned five indictments charging six Richmond County, North Carolina men who were arrested yesterday on charges including possession of a firearm by a convicted felon, drug distribution, and Hobbs Act robbery.
These indictments were the result of a coordinated effort among federal, state, and local law enforcement intended to reduce violent and gun-related crime in the Richmond County area, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
In 2017, security concerns prompted the City of Hamlet, North Carolina, to abruptly cancel its July 4th festivities. News of the 2017 Hamlet July 4th cancellation garnered public attention, and Attorney General Sessions, speaking at a gang conference in Winston-Salem on Aug. 17, 2017, remarked, “I heard recently about Hamlet, North Carolina, where this year’s annual Independence Day celebration was canceled suddenly because of threats of gang violence. This is in a town of about 7,000 people. I certainly respect the decision of the city leaders, but it is infuriating and wrong to me that they had to make it. This is America. We will not be held hostage in our homes by gangsters.” The Attorney General pledged to provide assistance to combat that violence, and the cases announced today are a direct result of that pledge.
“At the direction of the Attorney General, the Department of Justice’s Criminal Division dispatched a team of prosecutors to assist federal and local law enforcement officials in central North Carolina to address violent criminal activity in the area,” said Acting Assistant Attorney General Cronan. “It is our hope that that the Criminal Division’s efforts—together with those of our federal and local partners—will lead to a decrease in crime, result in accountability for violent offenders, and lead to safer streets and communities.”
On June 25, the grand jury returned indictments against six individuals including:
- Quandon Ha’son Wilson, 26, and Devion Marquis Ward, 22, both of Rockingham, North Carolina, were charged with one count of obstructing, delaying, and affecting commerce and the movement of any article and commodity in commerce, by robbery or extortion in connection with the robbery of Duncan’s Food Store in Rockingham on Jan. 8. Wilson and Ward are also charged with one count of using, carrying, or possessing a firearm during and in relation to a crime of violence;
- Quiteraus Dequan Gardner, 22, of Hamlet, was charged with one count of felon in possession of a firearm;
- Sajuan Deangelo Leslie, 29, of Rockingham, was charged with one count of felon in possession of a firearm;
- Trevon Ibe-Deonte Leslie, 23, of Rockingham, was charged with one count of felon in possession of a firearm, one count of possession with intent to distribute marijuana, and one count of using, carrying, or possessing a firearm during and in relation to a drug trafficking crime; and
- Hikeem Idrise-Lamar Byrd, 24, of Rockingham, was charged in a four-count indictment with one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base; two counts of possession with intent to distribute cocaine base, and one count of felon in possession of a firearm.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The cases indicted this month were investigated by the Hamlet Police Department, Rockingham Police Department, Richmond County Sheriff’s Office, North Carolina Department of Public Safety, FBI, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Federal law enforcement officials are also grateful to Assistant District Attorneys from the the Richmond County District Attorney’s Office for their assistance. The cases are being prosecuted by Washington, D.C.-based Trial Attorneys Jay Bauer, Erin Cox, Ivana Nizich, Jamie Perry and Sasha Rutizer of the Criminal Division of the U.S. Department of Justice.
Justice Department Files Denaturalization Lawsuit Against Chicago Man Convicted of Providing Material Support to TerroristsRead the Press Release
The Justice Department today filed a lawsuit seeking to revoke the naturalized U.S. citizenship of an individual convicted of providing material support to terrorists by, among other means, traveling abroad with the intent to murder or maim U.S. military forces in Iraq or Afghanistan. According to the civil complaint filed in federal court in the Northern District of Illinois, the individual allegedly concealed this conduct and other actions during his naturalization proceedings.
“The United States will use every available law enforcement tool to combat terrorism,” said Acting Associate Attorney General Jesse Panuccio. “Those who are naturalized in the United States swear to support and defend our Constitution and laws against all enemies. Those who have actively supported terrorism and concealed that fact cannot take that oath in good faith and should not have the benefit of continued citizenship. Civil denaturalization is thus one important tool in our anti-terrorism efforts. We will continue to zealously seek out and prosecute individuals like Mr. Ahmed.”
Khaleel Ahmed, 37, a native of India, was convicted pursuant to a guilty plea in 2009 of providing material support to terrorists through his efforts to travel abroad in order to murder or maim U.S. military forces in Iraq or Afghanistan, in violation of 18 U.S.C. § 2339A. As admitted in his criminal proceedings, between 2004 and 2007, Ahmed and his cousin, Zubair Ahmed, made preparations to travel abroad, and did in fact travel to Cairo, Egypt, with the intent of engaging in acts that would result in the murder or maiming of U.S. military forces. Upon returning from Cairo, the cousins discussed, sought, and received instruction on the use of firearms, including sniper rifles, and in counter-surveillance techniques. They also collected and distributed videos of attacks on U.S. military forces overseas, manuals on military tactics, and military manuals on weaponry. In 2009, the U.S. District Court for the Northern District of Ohio accepted the cousins’ guilty pleas, and in 2010 sentenced Khaleel Ahmed to eight years and four months in prison and three years of supervised release.
Although Ahmed’s crimes began while he was a permanent resident of the United States, he was not arrested and his criminal proceedings did not occur until after he naturalized in 2004. The civil denaturalization complaint alleges that Ahmed concealed and affirmatively misrepresented his criminal conduct throughout his naturalization proceedings, and that his application would have been denied had immigration authorities known about his provision of material support to terrorists.
"The United States will never be a safe haven for those seeking to support terrorists,” said Special Agent in Charge James M. Gibbons, HSI Chicago. “When individuals lie to obtain immigration benefits, the system is severely undermined and the security of our nation is put at risk.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case is being prosecuted by OIL-DCS’s National Security and Affirmative Litigation Unit, with support from ICE’s Chicago Office of the Chief Counsel and ICE-HSI Chicago.
The claims made in the complaint are allegations only, and there has been no determination of liability.
Attorney General Jeff Sessions Rescinds 24 Guidance DocumentsRead the Press Release
Attorney General Jeff Sessions today announced that, consistent with his November 2017 memorandum prohibiting the Department from making rules without following the procedures required by Congress, he is rescinding 24 guidance documents that were unnecessary, outdated, inconsistent with existing law, or otherwise improper.
“The American people deserve to have their voices heard and a government that is accountable to them. When issuing regulations, federal agencies must abide by constitutional principles and follow the rules set forth by Congress and the President. In previous administrations, however, agencies often tried to impose new rules on the American people without any public notice or comment period, simply by sending a letter or posting a guidance document on a website. That’s wrong, and it’s not good government.
“In the Trump administration, we are restoring the rule of law. That’s why in November I banned this practice at the Department and we began rescinding guidance documents that were issued improperly or that were simply inconsistent with current law.
“Today we are rescinding 24 more and continuing to put an end to unnecessary or improper rulemaking.”
In February 2017, President Donald Trump issued Executive Order 13777, which calls for agencies to establish Regulatory Reform Task Forces, chaired by a Regulatory Reform Officer, to identify existing regulations for potential repeal, replacement, or modification. The Department of Justice Task Force is chaired by Acting Associate Attorney General Jesse Panuccio.
In November 2017, the Attorney General issued a memorandum prohibiting Department of Justice (DOJ) components from using guidance documents to circumvent the rulemaking process and directed components to identify guidance documents that should be repealed, replaced, or modified.
The Task Force identified 25 guidance documents for repeal in December 2017 and has identified 24 more documents to repeal this month. The Task Force is continuing its review of existing guidance documents to repeal, replace, or modify.
The list of 24 guidance documents that DOJ has withdrawn in 2018 is as follows:
- March 17, 2011, OJJDP Memorandum re Status Offenders and the JJDPA.
- October 20, 2010 OJJDP Memorandum re Status Offenders and the JDDPA.
- June 17, 2014, Revised Guidance on Jail Removal and Separation Core Requirements.
- Disaggregating MIP Data from DSO and/or Jail Removal Violations: OJJDP Guidance for States, 2011.
- OJJDP Policy Guidance for Nonsecure Custody of Juveniles in Adult Jails and Lockups; Notice of Final Policy.
- OJJDP Guidance Manual: Audit of Compliance Monitoring Systems.
- OJJDP Disproportionate Minority Contact Technical Assistance Manual, Fourth Edition, 2009.
- BJA State Criminal Alien Assistance Program Guidelines, 2016.
- NIJ April 6, 2016, Dear Colleague Letter regarding additional topics and research questions of high priority and particular interest to the NIJ as part of its Comprehensive School Safety Initiative.
- Looking for the Best Mortgage, December 14, 2010.
- FRB: Putting Your Home on the Loan Line is Risky Business, August 6, 2015.
- Federal Protections Against National Origin Discrimination, April 30, 2006.
- Look at the Facts, Not at the Faces: Your Guide to Fair Employment, Approx. July 2009.
- Refugees and Asylees Have the Right to Work, May 2011.
- Language Assistance Self-Assessment and Planning Tool for Recipients of Federal Financial Assistance, on or before February 12, 2003.
- FAQs About the Protection of Limited English Proficiency (LEP) Individuals under Title VI of the Civil Rights Act of 1964 and Title VI Regulations, March 1, 2011.
- Draft Language Access Planning and Technical Assistance Tool for Courts, December 18, 2012.
- December 2, 2011 Dear Colleague Letter Regarding the Use of Race by Educational Institutions.
- 2011 Guidance on the Voluntary Use of Race to Achieve Diversity in Postsecondary Education dated December 2, 2011.
- 2011 Guidance on the Voluntary Use of Race to Achieve Diversity and Avoid Racial Isolation in Elementary and Secondary Schools dated December 2, 2011.
- September 27, 2013 Dear Colleague Letter on the Voluntary Use of Race to Achieve Diversity in Higher Education After Fisher v. University of Texas at Austin [Fisher I].
- September 27, 2013 Questions and Answers About Fisher v. University of Texas at Austin [Fisher I].
- May 6, 2014 Dear Colleague Letter on the Supreme Court Ruling in Schuette v. Coalition to Defend Affirmative Action.
- September 30, 2016 Question and Answers About Fisher v. University of Texas at Austin [Fisher II].
Attorney General Jeff Sessions Announces Bradley Weinsheimer to Replace Departing Associate Deputy Attorney General Scott SchoolsRead the Press Release
Today, Attorney General Jeff Sessions announced that he will be appointing Bradley Weinsheimer as Acting Associate Deputy Attorney General for the U.S. Department of Justice. Weinsheimer will replace Scott Schools, who is leaving on July 6th to take a position in the private sector after close to two decades of service in the Department of Justice.
Weinsheimer will began serving as Acting Associate Deputy Attorney General upon Schools’ departure. In this position he will have no role in overseeing the Special Counsel.
“Scott Schools has been a fabulous lawyer for the Department of Justice for close to twenty years, rising through the ranks at the Department to become our most senior career attorney,” said Attorney General Sessions. “He has served with distinction in several positions in the Department, including as an Assistant U.S. Attorney, the U.S. Attorney for South Carolina and the Northern District of California, and as an Associate Deputy Attorney General. Scott has provided invaluable leadership and counsel in his years at the Department, and his service is an example to all. He will be greatly missed, and I wish him the best in his future endeavors.”
Weinsheimer has been at the Department of Justice for 27 years, having been appointed as an Assistant U.S. Attorney in DC in 1991, where he held that position for 20 years. At the United States Attorney’s Office, he tried dozens of cases, including homicides, drug and violent crime conspiracies, and public corruption and bank fraud cases. He held numerous supervisory positions, including twice serving as the Chief of the Superior Court Division.
From June 2011 until March 2016, he served as the Deputy Counsel in Office of Professional Responsibility (OPR), and since March 2016 have worked in the National Security Division, where he has served as the Chief of Staff and Director of Risk Management and Senior Counsel, his current position.
Weinsheimer has received numerous awards, including two Executive Office for United States Attorneys’ Director’s awards for superior management and administration, as well as the Attorney General’s Claudia Flynn Award for Professional Responsibility.
Since 2006, he has been on the adjunct faculty of George Washington University Law School, where he teaches trial advocacy and criminal practice.
He is a 1985 graduate of Marquette University and a 1989 graduate of the University of Virginia law school.Justice Department, EPA Reach Settlement with MFA Incorporated and MFA Enterprises Incorporated to Address Alleged Chemical Accident Prevention ViolationsRead the Press Release
The U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) have entered into a consent decree with MFA Incorporated, headquartered in Columbia, Missouri, and its wholly owned subsidiary MFA Enterprises, Incorporated (collectively, “MFA”), to address alleged chemical accident prevention and preparedness violations under the Risk Management Program of the Clean Air Act. The alleged violations relate to the companies’ management of anhydrous ammonia at nine Missouri facilities, which have a combined inventory of more than 4.3 million pounds of the chemical. Under the settlement agreement, MFA will assure that its accident prevention program complies with all applicable Clean Air Act requirements, will install emergency shutoff equipment at 53 facilities, and will pay a civil monetary penalty of $850,000.
“This settlement will protect the communities surrounding MFA facilities by helping to prevent releases of harmful chemicals,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “By bringing MFA facilities into compliance with the Clean Air Act, this agreement will also substantially improve the maintenance and emergency systems that keep MFA workers safe.”
“Accidental releases of anhydrous ammonia fertilizers can be extremely dangerous. When it is used and stored properly, it helps the local agriculture industry meet the needs of our communities, and be competitive in the marketplace,” said EPA Region 7 Administrator Jim Gulliford. “This settlement ensures the rule of law is being followed by MFA, and that it is working responsibly to protect the communities and its workers where each of these facilities is located.”
In 2007, MFA pleaded guilty to one criminal misdemeanor violation of the Clean Air Act’s accident prevention provision, and admitted that it was negligent in failing to inspect, detect wear, and replace a valve on an ammonia storage tank where a release from that valve had hospitalized a worker. As part of the 2007 plea agreement, MFA agreed to come into compliance with applicable industry standards and safety requirements for the storage and handling of anhydrous ammonia. Beginning in 2012, EPA Region 7 conducted inspections and evaluated MFA’s compliance at facilities in Missouri and found that, despite the 2007 plea, numerous facilities did not conform to applicable industry standards. EPA also discovered several unreported ammonia releases that had injured workers.
The Complaint alleges numerous violations of the Clean Air Act’s Risk Management Program requirements at nine MFA facilities. Among MFA’s most common alleged violations, it failed to: (1) implement procedures to maintain its equipment; (2) properly conduct hazard reviews and address any hazards found in a timely manner; (3) develop and implement written operating procedures that provide clear instructions for safely conducting activities; and (4) disclose in its Risk Management Program submissions all incidents of accidental chemical releases that injured MFA employees.
Under the proposed settlement, MFA must create and implement corporate policies and engineering specifications for the storage and handling of anhydrous ammonia and a corporate-wide inventory maintenance system. It must also inspect and remedy any problems found within certain parts of its process equipment. Additionally, MFA must update the information it provides to EPA on accidental releases, and it must create and maintain a publicly available portion of its website listing accidents and releases that occur after the Consent Decree is lodged with the court. Finally, the Consent Decree requires MFA to hire an independent third-party auditor to conduct Risk Management Program audits at twenty facilities to identify and correct any potential violations of its risk management program under the Clean Air Act.
Also, as a part of today’s agreement, MFA will install emergency electronic shutoff systems at no fewer than 53 of its facilities. The electronic shutoff systems must include emergency stop buttons and a remote stop transmitter, which can be worn by an employee to reduce response time to a potential release. The systems are designed to close all shutoff valves and shut down liquid and vapor pumps facility-wide. The estimated cost to implement these systems is about $400,000.
The consent decree is subject to a 30-day public comment period and approval by the federal court.
Attorney General Jeff Sessions Announces Uttam Dhillon as New Acting Administrator of Drug Enforcement AdministrationRead the Press Release
Today, Attorney General Jeff Sessions announced the appointment of Uttam Dhillon as Acting Administrator of the Drug Enforcement Administration. Dhillon will replace Robert Patterson, who has retired after 30 years of service.
"With one American dying of a drug overdose every nine minutes, there can be no doubt that we are facing the deadliest drug epidemic in our history," Attorney General Sessions said. "The work of the Drug Enforcement Administration is critical to fighting this crisis, and President Trump and I are committed to continuing to give it the strong leadership it deserves. That is why I am pleased to appoint Uttam Dhillon as Acting Administrator. Uttam is a dedicated public servant who has served with distinction in the White House, the Department of Justice, the Department of Homeland Security, Congress, and as a career federal prosecutor taking on drug traffickers at the highest levels. I would also like to thank my good friend Robert Patterson for his exemplary service throughout his 30 years with the Drug Enforcement Administration, most recently as Acting Administrator."
Dhillon began serving in the role of Acting Administrator today.
Dhillon has had a long career battling drug traffickers and violent crime. In 2006, Dhillon was confirmed by the Senate as the first Director of the Office of Counternarcotics Enforcement at the Department of Homeland Security. In that role, Dhillon served as the primary policy advisor on counternarcotics issues, focused on combating the connections between illegal drug trafficking and terrorism and developed regional counternarcotics strategies for DHS.
Prior to DHS, Dhillon served as an Associate Deputy Attorney General in the Department of Justice, where he chaired the Attorney General’s Anti-Gang Coordination Committee, and led efforts to formulate and implement Department of Justice policies and programs to combat violent crime and criminal gangs. Earlier in his career, Dhillon worked as an Assistant United States Attorney in the Central District of California for 6 ½ years. During that period, Dhillon was appointed to the Department of Justice’s Organized Crime Drug Enforcement Task Force, and worked with federal and local law enforcement agencies to direct complex investigations of violent gangs and major narcotics trafficking organizations.
More recently, Dhillon has served as Deputy Counsel and Deputy Assistant to the President. Dhillon also has significant experience in the Legislative Branch, holding several senior roles including Chief Oversight Counsel for the House Financial Services Committee, Chief Counsel and Deputy Staff Director for the House Select Committee on Homeland Security, and Senior Investigative Counsel for the House Committee on Oversight and Government Reform. Both prior to and subsequent to his public service, Dhillon worked for several large law firms.
Dhillon received his law degree from Boalt Hall School of Law at the University of California, Berkeley, an M.A. from the University of California, San Diego, and a B.A. from California State University, Sacramento.South Florida Man Pleads Guilty to Hate Crime for Threatening to Blow up MosqueRead the Press Release
The Justice Department today announced that Dustin Allen Hughes, 26, of Cutler Bay, Florida, pleaded guilty yesterday in the Southern District of Florida to one count of obstructing the free exercise of religious beliefs through the threatened use of a dangerous weapon and explosive, in connection with making a phone call in which he threatened to detonate a bomb at a mosque in Pembroke Pines, Florida.
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 was conducted.
Sentencing is scheduled for Sept. 6 before U.S. District Judge Federico A. Moreno in Miami. Hughes faces a maximum sentence of 20 years in prison.
“The Justice Department will not tolerate threats of hate violence, which threaten an entire community’s sense of safety and security,” 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.”
“Our office is committed to protecting the right to freely exercise one’s religious beliefs,” said United States Attorney Benjamin Greenberg for the Southern District of Florida. “Obstructing this right, by force or threat of force, constitutes a hate crime that we will continue to prosecute to the fullest extent of the law.”
“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, Miami-Dade Police Department and the City of Miami Police Department also provided assistance with this matter. The case is being prosecuted by Assistant U.S. Attorney Michael Davis of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
Maryland Woman Indicted for Alien Harboring and Withholding Immigration Documents to Maintain Labor and Services of Zimbabwean NationalRead the Press Release
An indictment was unsealed today in the U.S. District Court of Maryland charging Shingaizdo Nhekairo, 49, of Arnold, Maryland, with one count of alien harboring for financial gain and one count of unlawful conduct with respect to immigration documents. The indictment was announced by Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division and U.S. Attorney Robert K. Hur.
According to the indictment, between 2006 and 2014, the defendant harbored the victim, a national of Zimbabwe. The indictment further alleges that the defendant concealed the victim’s immigration status for purposes of financial gain and confiscated the victim’s passport to maintain her labor and services.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. If convicted of alien harboring, the defendant faces a maximum sentence of 10 years in prison. The crime of unlawful conduct with respect to immigration documents carries a maximum sentence of one year in prison and requires mandatory restitution.
The case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Baltimore Division, with assistance from the Department of Labor’s Wage and Hour Division. It is being prosecuted by Assistant United States Attorney Ayn Ducao of the District of Maryland and Trial Attorneys Vasantha Rao and Emily Savner of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Justice Department Update on Hate Crimes ProsecutionsRead the Press Release
Today, on the one year anniversary of the Justice Department’s 2017 Hate Crimes Summit, the Department announced an update on hate crimes prosecutions under the Civil Rights Division’s Criminal Section. The Department is committed to enforcing federal hate crimes statutes, which allow the Department to prosecute certain crimes that are committed because of the actual or perceived race, color, religion, national origin, gender, sexual orientation, gender identity, or disability of any person. In recent years, the Department has ramped up its prosecutions of hate crimes and increased training of federal, state, and local law enforcement officers to ensure that hate crimes are identified and prosecuted to the fullest extent possible.
Over the past 10 years, the Department of Justice has charged more than 200 defendants with hate crimes offenses. The Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act of 2009 (HCPA) provided a valuable new tool in this effort. The Department has used the HCPA to indict 88 defendants in 42 hate crimes cases with 64 convictions to date. In FY 2016, the Department charged 27 defendants in 18 cases, obtaining 16 convictions. Since January 2017, the Department has indicted 32 defendants involved in committing hate crimes and secured convictions of 32 defendants for hate crimes incidents.
“Individuals should be able to live their lives free from the threat of violence and discrimination, no matter who they are, what they believe, or how they worship,” said Acting Assistant Attorney General John Gore. “I am proud of the work that the Civil Rights Division has already accomplished, and we will continue to work diligently to bring to justice perpetrators of hate crimes across the country.”
Hate crimes prosecutions from January 2017 to present:
- Racial Hate Crimes
- Eight indictments and 14 convictions
- Religious Hate Crimes
- Eight indictments and seven convictions in cases involving arson or other physical attacks, or conspiracy or threats to commit such attacks against places of worship;
- Seven indictments and five convictions in cases involving other hate crimes based on religion.
- Sexual Orientation Hate Crimes
- Six indictments and six convictions
- Other (Gender Identity Hate Crimes)
- One sentence;
- One indictment, one conviction in state court with a federal prosecutor cross-designated as a state prosecutor.
Based on the FBI’s latest Uniform Crime Statistics Report, issued in November 2017 for calendar year 2016, there were 6,063 single-bias incidents reported involving 7,227 offenses, 7,509 victims, and 5,727 known offenders, and 58 multiple-bias incidents reported involving 94 offenses, 106 victims, and 43 known offenders.
The Department has created and launched a number of training and outreach programs in order to work with the network of U.S. Attorney’s Offices, local communities and organizations, and law enforcement to find, identify, investigate, and prosecute hate crimes cases all over the country. These programs include state and local law enforcement trainings, roundtable and panel discussions, stakeholder telephone conferences, and hate crime summits.
More information about the Justice Department’s hate crimes enforcement efforts can be found at https://www.justice.gov/crt/hate-crimes-0.
- Racial Hate Crimes
Former Virginia Software Company CEO Sentenced to Prison for Employment Tax FraudRead the Press Release
A former Chief Executive Officer (CEO) of a software company in Sterling, Virginia, was sentenced to 21 months in prison today for conspiring to defraud the government by failing to pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia.
According to court documents, Robert Lewis was the CEO of Enterworks, Inc., a software company in Sterling, Virginia. From January 2011 to February 2013, Lewis conspired with Kristie McDonald, Enterworks’ Vice President of Finance and Administration, to defraud the United States by failing to pay over to the IRS more than $1.8 million in payroll taxes withheld from employee paychecks.
As part of their scheme, Lewis and McDonald circumvented the company’s normal payroll and accounting procedures by paying some employees with manual paychecks. The employees still received the correct pay after withholdings, but by bypassing the accounting system, Lewis and McDonald were able to hide the fact that the withholdings were not being paid over to the IRS. The practical effect of their scheme was to conceal the company’s failing financial condition from its Board of Directors. They also caused the company to file false quarterly employment tax returns with the IRS that underreported the amount of tax due.
During this same period, Lewis and McDonald failed to remit the full amount of employee retirement contributions to the company’s retirement plan. Through their actions, the company failed to transfer nearly $225,000 in voluntary employee retirement withholdings. Lewis and McDonald used the misappropriated money to pay the operating expenses of the company, which included their own six figure salaries and salary raises for other employees.
In addition to the term of imprisonment, U.S. District Judge T.S. Ellis III ordered Lewis to serve three years of supervised release and to pay restitution in the amount of $1,812,706 million.
McDonald was previously sentenced on June 22 to 15 months imprisonment to be followed by three years of supervised release and also ordered to pay restitution in the amount of $1,812,706 million.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Terwilliger thanked agents of IRS Criminal Investigation and the Department of Labor who conducted the investigation, and Tax Division Trial Attorneys Kevin Schneider and Charles M. Edgar, Jr. and Assistant U.S. Attorney Ryan Faulconer, who are prosecuting the case.
Connecticut Insurance Salesman Sentenced to Prison for Tax FraudRead the Press Release
A Newington, Connecticut, insurance salesman was sentenced to 70 months in prison for tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Terry DiMartino was convicted after a jury trial in March 2016 of one count of corruptly interfering with the due administration of the internal revenue laws, two counts of filing false tax returns and five counts of willfully failing to file tax returns. DiMartino was an insurance salesman for numerous insurance companies located in Connecticut and elsewhere. Despite earning millions of dollars in insurance commissions over the last decade, DiMartino did not file accurate tax returns or pay the taxes owed.
According to the evidence presented at trial, DiMartino attempted to obstruct the IRS by mailing false documents to the IRS, including three false tax returns for the 2007 tax year, one of which requested a fraudulent $14 million refund. He sent false and threatening correspondence to the IRS in an attempt to defeat the IRS’s assessment, collection and investigative efforts. He submitted false and threatening correspondence to insurance companies that sought to cooperate with the IRS collection activities. DiMartino also set up nominee entities that he used to divert his insurance commissions. He used the nominees to hide and conceal assets to prevent the IRS from collecting on his tax liabilities. DiMartino has not filed an accurate individual income tax return since the 1996 tax year.
In addition to the term of imprisonment, U.S. District Court Judge Alvin W. Thompson ordered DiMartino to serve one year of supervised release and to pay $658,547.62 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who investigated the case, and Tax Division Trial Attorney Jason M. Scheff and former Tax Division Trial Attorney Erin B. Pulice, who prosecuted the case. The Tax Division expressed gratitude to the U.S. Attorney’s Office for the District of Connecticut for their assistance in the investigation and prosecution of this case.
National Health Care Fraud Takedown Results in Charges Against 601 Individuals Responsible for over $2 Billion in Fraud LossesRead the Press Release
Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Deputy Inspector General Gary Cantrell of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation (CI), Centers for Medicare and Medicaid Services (CMS) Deputy Administrator and Director of the Center for Program Integrity Alec Alexander and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).
Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”
“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar. “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
“Healthcare fraud touches every corner of the United States and not only costs taxpayers money, but also can have deadly consequences,” said FBI Deputy Director Bowdich. “Through investigations across the country, we have seen medical professionals putting greed above their patients’ well-being and trusted doctors fanning the flames of the opioid crisis. I want to thank the agents, analysts and our law enforcement partners in every field office who work each and every day to stop these criminals and hold them accountable for their actions.”
“DEA is committed to ending the opioid crisis occurring in our communities and preventing prescription drug misuse,” said DEA Assistant Administrator Martin. “DEA will continue to work with our partners every day to protect our citizens while ensuring that patients have adequate access to these critical medications.”
“This year’s operations, focusing on opioid-related schemes, spotlight the far-reaching impact of health care fraud,” said HHS Deputy Inspector General Cantrell. “Such crimes threaten the vitally important Medicare and Medicaid programs and the beneficiaries they serve. Though we have made significant progress in our fight against health care fraud; our efforts are not complete. We will continue to work with our partners to protect the health and safety of millions of Americans.”
“It takes a special kind of person to prey on the sick and vulnerable as happened in many of these health care fraud schemes,” said Deputy Chief Hylton. “Medical professionals and others callously placed individuals and vital healthcare services in harm’s way simply because of greed. IRS-CI special agents continue to work side-by-side with other federal, state and local law enforcement officers to uncover these schemes and hold these criminals accountable for their actions.”
“CMS makes it a top priority to protect the health and safety of millions of beneficiaries who depend on vital federal healthcare programs,” said Alec Alexander, deputy administrator and director of the Center for Program Integrity. “CMS’ Center for Program Integrity collaborates closely with our law enforcement partners to safeguard precious taxpayer dollars. Under Administrator Seema Verma, we will continue to strengthen this partnership with law enforcement in order to ensure the integrity and sustainability of these essential programs that serve millions of Americans.”
“Heath care fraud wounds our service members and veterans alike, as they rely upon and rightfully expect uncompromised care through the Department of Defense’s TRICARE Program,” said DCIS Director O’Reilly. “Investigations that culminated in enforcement actions over the past several days underscore the steadfast commitment of the Defense Criminal Investigative Service and our investigative partners to vigorously investigate fraud impacting TRICARE. We remain vigilant in our efforts to ensure the high standards of care our service members, military retirees, and their dependents deserve while safeguarding American taxpayer dollars.”
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. 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 for over $14 billion.
*********
For the Strike Force locations, in the Southern District of Florida, 124 defendants were charged with offenses relating to their participation in various fraud schemes involving over $337 million in false billings for services including home health care and pharmacy fraud. In one case, an owner, medical director, and two employees of a sober living facility were charged with conspiracy to commit health care and wire fraud, substantive counts of health care fraud, and substantive counts of money laundering. The indictment alleges a scheme that illegally recruited patients, paid kickbacks, and defrauded health care benefit programs for widespread fraudulent urine testing. During the course of the fraudulent scheme, the facility submitted more than $106 million in claims for substance abuse treatment services.
In the Central District of California, 33 defendants were charged for their roles in schemes to defraud insurance programs out of more than $660 million. For example, one indictment in a compounding pharmacy fraud case alleges an attorney/marketer paid kickbacks and offered incentives such as prostitutes and expensive meals to two podiatrists in exchange for prescriptions written on pre-printed prescription pads, regardless of the medical need for the prescriptions. Once the prescriptions were filled, members of the conspiracy submitted approximately $250 million in fraudulent claims to federal, state, and private insurers for the compounded drugs.
In the Southern District of Texas, 48 individuals were charged in cases involving more than $291 million in alleged fraud. Among these defendants are a pharmacy chain owner, managing partner, and lead pharmacist charged with a drug and money laundering conspiracy. According to the indictment, the coconspirators used fraudulent prescriptions to fill bulk orders for over one million pills of hydrocodone and oxycodone, which the pharmacy, in turn, sold to drug couriers for millions of dollars. In the Northern District of Texas, a home health agency owner was arrested on a criminal complaint for a $2.6 million health care fraud scheme.
In the Eastern District of Michigan, 35 defendants face charges for their alleged roles in fraud, kickback, money laundering and drug diversion schemes involving approximately $197 million in false claims for services that were medically unnecessary or never rendered. In one case, a physician was charged in separate kickback conspiracies with two home health agency owners, which resulted in more than $12 million in fraudulent insurance billings.
In the Northern District of Illinois, 21 individuals were charged for various fraud schemes involving home health and dental services. These schemes involved allegedly over $54 million in fraudulent billing. One case alleges a home health fraud and kickback conspiracy, which resulted in more than $6.2 million paid by Medicare based on the fraudulent billings.
In the Eastern District of New York, 13 individuals were charged with participating in a variety of schemes including kickbacks, services not rendered, identity theft and money laundering involving over $38 million in fraudulent billings. For example, the owner of a Brooklyn ambulette company was charged in a $7 million conspiracy stemming from the alleged payment of kickbacks for the referral of patients, who subjected themselves to purported physical and occupational therapy and other services, and were transported by the ambulette company.
In the Middle District of Florida, 21 individuals were charged with participating in a variety of schemes involving more than $21 million in fraudulent billings. In one case, a physician and clinic owner were charged with a conspiracy to defraud Medicare of more than $2.8 million for fraudulent home health billings.
In the Southern Louisiana Strike Force, operating in the Middle and Eastern Districts of Louisiana as well as the Southern District of Mississippi, 42 defendants were charged in connection with health care fraud, drug diversion, and money laundering schemes involving more than $16 million in fraudulent billings. One case alleges that three pharmacy owners and a nurse practitioner conspired to unlawfully dispense controlled substances and defraud TRICARE and private insurance companies out of $12 million.
In the Corporate Strike Force, five defendants were charged in the Middle District of Tennessee with a kickback conspiracy at a durable medical equipment company, which allegedly resulted in more than $1 million in kickbacks and over $2.5 million in fraudulent billings to Medicare.
*********
In addition to the Strike Force locations, today’s enforcement actions include cases and investigations brought by an additional 46 U.S. Attorney’s Offices, including the execution of search warrants in various investigations conducted by the Central and Northern Districts of California, Middle District of Florida, Southern District of Georgia, Western District of Kentucky, Eastern District of Michigan, Western District of North Carolina, Eastern and Western Districts of Texas, Eastern and Western Districts of Virginia, and Western District of Washington.
In the Northern and Southern Districts of Alabama, 15 defendants were charged for their roles in eight health care fraud schemes involving compounding pharmacy fraud and unlawful distribution of controlled substances.
In the Eastern District of California, four defendants were charged for their roles in two health care fraud schemes, one of which included forged prescriptions.
In the Southern District of California, seven defendants, including a physician, were charged for their roles in three health care fraud schemes and one scheme involving identity theft and services that were not rendered.
In the District of Colorado, a defendant was charged with health care fraud related to billings to Medicaid and Medicare.
In the District of Connecticut, three defendants, including two medical professionals, were charged for their roles in two schemes involving compounding drugs and unlawful distribution of Schedule II and IV controlled substances.
In the District of Delaware, a physician/owner of a pain management clinic was charged with unlawfully prescribing more than two million dosage units of Oxycodone products.
In the District of Columbia, a durable medical equipment company owner was charged with defrauding Medicaid of $9.8 million.
In the Northern District of Florida, four defendants were charged in a scheme to defraud TRICARE and other private insurance companies out of over $8 million for medically unnecessary compounded creams and pills.
In the Northern, Middle, and Southern Districts of Georgia, 12 defendants, including two physicians, were charged in nine health care fraud, drug diversion, or compounding pharmacy schemes involving over $13.5 million in fraudulent billings.
In the District of Idaho, three defendants, all of who are medical professionals, were charged for their roles in three separate fraud schemes involving controlled substances.
In the Central and Southern Districts of Illinois, seven defendants were charged in six separate schemes to defraud the Medicaid program.
In the Northern District of Indiana, eight defendants were charged in various health care fraud schemes to defraud both the Medicare and Medicaid programs.
In the Northern District of Iowa, two defendants – both medical professionals – were charged for their roles in two opioid-related schemes.
In the Districts of Kansas and the Northern and Western Districts of Oklahoma, 12 defendants, including four physicians, were charged in various unlawful distribution of controlled substances schemes. In the Western District of Oklahoma, one case marks the district’s first time charging unlawful distribution of controlled substances resulting in a death.
In the Eastern and Western Districts of Kentucky, 12 defendants, including five medical professionals, were charged in various schemes involving health care fraud, unlawful distribution of controlled substances, aggravated identity theft, and money laundering. One case involved the operation of two false-front medical clinics.
In the Districts of Maine and Vermont, two defendants were charged for their roles in two schemes to defraud various government programs including Medicare, Medicaid, and ones run by the HHS’ Administration for Children and Families.
In the District of Nebraska, seven defendants, including one physician, were charged in five separate schemes to defraud Medicare, Medicaid, and various HHS programs.
In the District of Nevada, four defendants, including three medical professionals were charged with conspiracies to commit health care fraud and distribute controlled substances.
In the District of New Jersey, eight defendants, including a New York doctor, an anesthesiology technologist for a Philadelphia hospital, and the owner of a medical billing company, were charged for their roles in five schemes to defraud private insurance companies of over $16 million.
In the Southern District of New York, two defendants were charged in schemes involving health care fraud or drug diversion.
In the Middle District of North Carolina, two defendants were charged with a conspiracy to defraud Medicare out of over $4 million.
In the Southern District of Ohio, three defendants – all medical professionals – were charged for their roles in two health care fraud schemes, one of which involved illegal drug distribution and kickbacks.
In the Eastern and Middle Districts of Pennsylvania, 12 defendants were charged for their roles in three drug diversion schemes.
In the Western District of Pennsylvania, four defendants – all physicians – were charged in various health care fraud and drug diversion schemes. One scheme involved 32,000 dosage units of buprenorphine.
In the District of Rhode Island, one defendant was charged for participating in a theft and aggravated identity theft scheme.
In the District of South Carolina, three defendants were charged for their separate roles in a conspiracy to possess with the intent to distribute fentanyl.
In the District of South Dakota, two defendants were charged in separate cases, one of which involved a scheme to defraud the Indian Health Service.
In the Middle District of Tennessee, 10 defendants were charged in two separate schemes, including a conspiracy to fraudulently obtain oxycodone.
In the Eastern District of Texas, two defendants were charged for their role in health care fraud schemes to defraud the Medicare and Medicaid programs.
In the District of Utah, two defendants were charged in two cases, one of which involved a $31 million scheme to defraud Medicare and Medicaid.
In the Western District of Virginia, eight defendants were charged for their alleged roles in health care fraud schemes. One $45 million scheme to defraud Medicaid involved falsification of documents in patient files.
In the Eastern District of Washington, a dentist and another individual were indicted for distributing and conspiring to distribute hydrocodone and tramadol without a legitimate medical purpose.
In the Eastern District of Wisconsin, three defendants were charged in a scheme involving the unlawful distribution of controlled substances and aggravated identity theft.
In addition, in the states of Arizona, Arkansas, California, Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maine, Michigan, Missouri, Mississippi, Nevada, New York, Oklahoma, Pennsylvania, Texas, Vermont, and Washington, 97 defendants have been charged with defrauding the Medicaid program out of over $27 million. These cases were investigated by each state’s respective Medicaid Fraud Control Units. In addition, the Medicaid Fraud Control Units of the states of California, District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Nevada, North Carolina, Ohio, Texas, Tennessee, and Virginia participated in the investigation of many of the federal cases discussed above.
The cases announced today are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with Medicare Fraud Strike Force teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices in the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois, Middle District of Louisiana, and the Middle District of Florida; and agents from the FBI, HHS-OIG, DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and state Medicaid Fraud Control Units.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Additional documents related to this announcement will shortly be available here:
https://www.justice.gov/opa/documents-and-resources-june-28-2018.
This operation also highlights the great work being done by the Department of Justice’s Civil Division. In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2 billion in judgements and settlements related to matters alleging health care fraud.
Former Rockcastle County Deputy Sheriff Indicted for Using Excessive Force Against Arrestee and for Obstructing JusticeRead the Press Release
A federal grand jury in London, Kentucky, today returned a two-count indictment charging Brandon McIntosh, a former deputy of the Rockcastle County Sheriff’s Office, with violating the civil rights of an arrestee by using excessive force against him and then filing a false report to obstruct the investigation of that assault.
The indictment alleges that on Nov. 6, 2016, McIntosh assaulted P.D., an arrestee, using a dangerous weapon and resulting in bodily injury to P.D. The indictment further alleges that McIntosh filed a report falsely stating that, as McIntosh approached P.D., P.D. became very combative and that McIntosh used the least amount of force to get P.D. under control.
If convicted, McIntosh faces a maximum term of imprisonment of 10 years on the civil rights charge and twenty years on the obstruction charge.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Hydee Hawkins of the Eastern District of Kentucky and Trial Attorney Mary J. Hahn of the Civil Rights Division are prosecuting the case.
Former ICE Chief Counsel Sentenced to Four Years in Prison for Wire Fraud and Aggravated Identity Theft SchemeRead the Press Release
Former Chief Counsel Raphael A. Sanchez of the U.S. Immigration and Customs Enforcement’s (ICE) Office of Principal Legal Advisor (OPLA) was sentenced to 48 months in prison for a wire fraud and aggravated identity theft scheme involving the identities of numerous aliens, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and ICE Principal Legal Advisor Tracy Short.
Sanchez, 44, of Seattle, Washington, pleaded guilty on Feb. 24, to one count of wire fraud and one count of aggravated identity theft. In addition to the prison term, U.S. District Court Judge Robert S. Lasnik of the Western District of Washington ordered Sanchez to pay $190,345.63 in restitution.
“Raphael Sanchez was entrusted with overseeing the honest enforcement of our country’s immigration laws,” said Acting Assistant Attorney General Cronan. “Instead, Sanchez abused that trust, and capitalized on his position at ICE to exploit his victims and line his own pockets.”
“ICE employees are required to ensure honest enforcement of more than 400 laws,” said ICE Principal Legal Advisor Short. “We cannot let one bad actor detract from the work the agency’s dedicated employees in Seattle and across the world are doing to ensure our national security and uphold public safety. Our employees are held to the highest standards of professional conduct. Individuals who violate the public’s trust will face consequences for their actions, as Mr. Sanchez did in this case. Corruption will not be tolerated.”
Sanchez, who was responsible for immigration removal proceedings in Alaska, Oregon and Washington, admitted in his plea agreement that he intentionally devised a scheme to defraud aliens in various stages of immigration removal proceedings with ICE. Sanchez used the personally identifiable information of those aliens to open lines of credit and personal loans in their names, manipulate their credit bureau files, transfer funds to himself and to purchase goods for himself using credit cards issued in their names.
Sanchez admitted that he obtained personally identifiable information of the victim aliens by using ICE’s official computer database systems and by accessing their official, hard-copy immigration A-files. He then used his work computer to forge identification documents, including Social Security cards and Washington State driver’s licenses, in the victims’ names. Sanchez used these forged documents to open credit card and bank accounts subject to his own control in the names of the aliens.
To further the scheme, Sanchez listed his residence as the aliens’ home addresses on account paperwork. In some cases, he created public utility account statements in their names to provide the necessary proof of residence to open lines of credit in their names or to conceal the scheme. He also opened e-mail and online financial accounts in the names of several aliens, and manufactured a false earnings-and-leave statement in the name of an alien and registered a car in her name.
Once the accounts were approved and opened, Sanchez made charges or drew payments totaling more than $190,000 in the names of aliens to himself or entities that he controlled, often using PayPal and mobile point-of-sale devices from Amazon, Square, Venmo and Coin to process the fraudulent transactions. In a number of cases, Sanchez purchased goods online in the names of aliens and had them shipped to his residence. Sanchez also employed credit-monitoring services and corresponded with credit bureaus in the names of aliens to conceal his fraud scheme. Sanchez also claimed three aliens as relative dependents on his tax returns for 2014, 2015, and 2016.
ICE’s Office of Professional Responsibility, the FBI, and the U.S. Postal Inspection Service investigated the case. Trial Attorneys Luke Cass and Jessica C. Harvey of the Criminal Division’s Public Integrity Section prosecuted the case.
Former Chief Financial Officer of Bankrate Inc. Pleads Guilty to Orchestrating Complex $25 Million Accounting and Securities Fraud SchemeRead the Press Release
The former chief financial officer of Bankrate Inc., a publicly traded financial services and marketing company formerly headquartered in North Palm Beach, Florida, pleaded guilty today for his role in orchestrating an accounting and securities fraud scheme that caused more than $25 million in shareholder losses.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin Greenberg of the Southern District of Florida and Criminal Investigations Group Inspector in Charge Daniel Adame of the U.S. Postal Inspection Service made the announcement.
Edward J. DiMaria, 53, of Fairfield County, Connecticut, pleaded guilty to one count of conspiracy to make false statements to a public company’s accountants, falsify a public company’s books, records and accounts, and commit securities fraud; and one count of making materially false statements to the Securities and Exchange Commission (SEC). DiMaria pleaded guilty before U.S. Magistrate Judge Simonton of the Southern District of Florida. DiMaria is scheduled to be sentenced on Sept. 11.
“Edward DiMaria used his position as Bankrate’s CFO to inflate the company’s earnings and mislead shareholders, auditors, and the SEC, resulting in over $25 million in losses to innocent investors,” said Acting Assistant Attorney General Cronan. “DiMaria’s conviction and the restitution in this case will hopefully provide some solace to Bankrate’s shareholders, while also reminding potential bad actors of the Department’s commitment to hold individuals accountable for their involvement in complex accounting and securities fraud schemes that harm investors and undermine our markets.”
“The consequences of this type of financial fraud scheme are far reaching, affecting not only the economy in the United States, but also the world’s financial markets,” said Inspector in Charge Adame. “Those who engage in this type of abuse of power while in positions of authority should know they cannot escape detection. They will be found and they will be held accountable for their actions. The U.S. Postal Inspection Service has a long history of investigating complex financial fraud schemes, like this one, in order to protect investors and the integrity of the financial marketplace.”
As part of his guilty plea, DiMaria admitted that between 2010 and 2014, he directed and conspired to commit a complex scheme to artificially inflate Bankrate’s earnings through so-called “cookie jar” or “cushion” accounting, where millions of dollars in unsupported expense accruals were purposefully left on Bankrate’s books and then selectively reversed in later quarters to boost earnings. In addition, DiMaria admitted that he conspired with other Bankrate employees to misrepresent certain company expenses as “deal costs” in order to artificially inflate publicly reported adjusted earnings metrics. DiMaria also admitted that he made materially false statements to Bankrate’s independent auditors to conceal the improper accounting entries, and that he caused Bankrate’s financial statements filed with the SEC to be materially misstated.
DiMaria further admitted that the scheme caused more than $25 million in losses to Bankrate’s shareholders. Pursuant to the terms of the plea agreement, DiMaria is required to pay approximately $21 million in restitution to Bankrate’s shareholders.
Hyunjin Lerner, Bankrate’s former vice president of finance, previously pleaded guilty for his role in the conspiracy. Lerner was sentenced earlier this year to 60 months in prison by U.S. District Court Judge K. Michael Moore of the Southern District of Florida.
The U.S. Postal Inspection Service’s National Headquarters Fraud Team investigated the case. Assistant Chief Henry Van Dyck and Trial Attorneys Emily Scruggs and Jason Covert of the Criminal Division’s Fraud Section are prosecuting the case with assistance from the U.S Attorney’s Office for the Southern District of Florida. The SEC also provided assistance in this matter.
Department of Justice Announces New Immigration Compliance Requirements for FY 2018 GrantsRead the Press Release
The Department of Justice today posted solicitations for four public safety grants. Applicants for these FY 2018 grants will be required to certify compliance with new conditions to these grants that will increase information sharing and other cooperation between federal, state, and local law enforcement. These new grant conditions will ensure that federal immigration authorities have the information they need to enforce immigration laws and keep our communities safe.
The new conditions require recipient jurisdictions to certify that they: (1) comply with 8 USC 1373 and 1644, which promote information sharing and other cooperation between state and local law enforcement and federal immigration authorities; (2) when practicable, provide advance notice before releasing a criminal alien from a state or local detention center; (3) permit Department of Homeland Security personnel to access criminal detention facilities in order to meet to conduct interviews of criminal aliens in state or local custody; and (4) comply with federal criminal laws related to the harboring of illegal aliens.
The grants also allow for preferential consideration of a grant application where the applicant plans to use immigration-cooperation tactics to address public safety in their jurisdiction.
"So-called 'sanctuary' policies make all of us less safe because they intentionally undermine our laws and protect illegal aliens who have committed crimes,” Attorney General Jeff Sessions said. “As part of accomplishing the Department of Justice's top priority of reducing violent crime, we must encourage these 'sanctuary' jurisdictions to change their policies that undermine public safety, and to partner with federal law enforcement to remove criminals.”
More details on these grants are below:
- Supporting Innovation: Field-Initiated Programs to Improve Officer and Public Safety
This grant solicitation invites applicants to pilot, assess, and implement original approaches that target emerging or chronic crime problems facing the country and placing our officers and public at risk.
- Justice Accountability Initiative (JAI): Pilot Projects Using Data-driven Systems to Reduce Crime and Recidivism
This grant solicitation invites applicants to reduce recidivism and crime by improving the effectiveness of risk assessments and to provide a more data-driven approach system-wide.
- Gang Suppression Planning: Build Capacity for a Multilateral Data-Driven Strategy to Promote Public Safety
This grant solicitation seeks to understand a jurisdiction’s gang landscape and be able to use data to develop effective gang control strategies. It will aim to reduce and sustain reductions in community youth violence, particularly gun and gang violence, and victimization; prevent violence and promote healing from victimization and exposure to violence in the home, school, and community; and increase the safety, well-being, and healthy development of children, youth, and families.
- A Law Enforcement and Prosecutorial Approach To Address Gang Recruitment of Unaccompanied Alien Children program:
This grant solicitation invites jurisdictions that have high levels of youth- perpetrated gun crime and gang violence and that can demonstrate a willingness and readiness to develop fully comprehensive community- and data-driven responses. Funding will support selected jurisdictions to undertake strategic planning and capacity-building work through multidisciplinary and community partnerships.
Attorney General Sessions, Secretary Azar and Other Law Enforcement Officials to Announce National Health Care Fraud and Opioid TakedownRead the Press Release
WASHINGTON – Attorney General Jeff Sessions, Department of Health and Human Services (HHS) Secretary Alex M. Azar III and other law enforcement officials will hold a press conference THURSDAY, JUNE 28, 2018, at 10:30 a.m. EDT, to announce a nation-wide health care fraud and opioid enforcement action. Attorney General Sessions and Secretary Azar will leave the press conference before conclusion. Questions may be answered by other law enforcement officials on stage following remarks.
WHO: Attorney General Jeff Sessions, Justice Department
Secretary Alex M. Azar, HHS
Deputy Director David L. Bowdich, FBI
Assistant Administrator John Martin, Drug Enforcement Administration
Inspector General Daniel R. Levinson, HHS
Acting Assistant Attorney General John P. Cronan,
Justice Department’s Criminal Division
Deputy Chief Eric Hylton, IRS-Criminal Investigation
Director Alec Alexander, Centers for Medicare and Medicaid Services Center for Program Integrity
Director Dermot F. O’Reilly, Defense Criminal Investigative Service
WHAT: Announcement of significant law enforcement actionsWHEN: THURSDAY, JUNE 28, 2018 10:30 a.m. EDT
WHERE: Department of Justice
7th Floor Press Conference Room
950 Pennsylvania Avenue, NW
Washington, DC 20530
OPEN PRESS
LIVESTREAMED ON JUSTICE.GOV/LIVE-STREAMNOTE: Please RSVP to [email protected] and Sarah Sutton at [email protected]. All media must present government-issued photo I.D. (such as driver’s license) as well as valid media credentials. Media must enter the department at the visitor’s entrance on Constitution Avenue NW between 9th and 10th Streets. Media may begin arriving at 8:30 a.m. EDT and cameras must be pre-set by 9:15 a.m. EDT. Press inquiries regarding logistics should be directed to the Office of Public Affairs at 202-514-2007.
# # #
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
The Walt Disney Company Required to Divest Twenty-Two Regional Sports Networks in Order to Complete Acquisition of Certain Assets from Twenty-First Century FoxRead the Press Release
The Department of Justice announced today that it will require The Walt Disney Company to divest 22 Regional Sports Networks (“RSNs”) as a condition of its $71.3 billion acquisition of certain assets from Twenty-First Century Fox, Inc.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the Southern District of New York to block the proposed acquisition. At the same time, the Department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit. The Department said that without the required divestitures, the proposed acquisition would likely result in higher prices for cable sports programming licensed to multichannel video programming distributors (“MVPDs”) in each of the local markets that the RSNs serve. To streamline agency clearance, Disney agreed to divest the 22 RSNs rather than continue with the Antitrust Division’s ongoing merger investigation.
“American consumers have benefitted from head-to-head competition between Disney and Fox’s cable sports programming that ultimately has prevented cable television subscription prices from rising even higher,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement will ensure that sports programming competition is preserved in the local markets where Disney and Fox compete for cable and satellite distribution.”
According to the Department’s complaint, Disney and Fox compete to sell cable sports programming to MVPDs in various local markets across the United States. Because of this competition, the complaint alleges that the proposed acquisition would likely result in MVPDs paying higher prices for cable sports programming in those local markets. The proposed settlement requires Disney to divest 22 RSNs, currently owned by Fox, to a buyer acceptable to the Department. The Department has determined that the divestitures would resolve antitrust concerns arising from Disney’s acquisition of certain assets from Fox.
The Walt Disney Company is incorporated in Delaware with its principal place of business in Burbank, Calif. It is a diversified worldwide entertainment company that, among other things, owns cable and broadcast television networks, television production and distribution operations, broadcast television stations and motion picture production and distribution operations. Its revenues were approximately $55 billion for its 2017 fiscal year.
Twenty-First Century Fox, Inc. is incorporated in Delaware with its principal place of business in New York, NY. It is a diversified global media and entertainment company that, among other things, owns cable and broadcast television networks, broadcast television stations and motion picture production and distribution operations. Its revenues were approximately $28.5 billion for its 2017 fiscal year. The Fox assets that Disney is acquiring, including the Fox RSNs, generated $19 billion in 2017 revenues.
As required by the Tunney Act, the proposed settlement and the Department’s competitive impact statement will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Owen M. Kendler, Chief, Media, Entertainment, and Professional Services Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 4000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Southern District of New York may enter the proposed consent decree upon finding that it serves the public interest.
Statement from Solicitor General Noel Francisco on the retirement of Supreme Court Justice Anthony KennedyRead the Press Release
Today, Solicitor General Noel Francisco issued the following statement on the retirement of Supreme Court Justice Anthony Kennedy:
“As Solicitor General of the United States and on behalf of this Office, we are grateful and appreciative for Justice Kennedy’s tireless years of public service in our federal judiciary and on our Nation’s highest Court. His jurisprudence has left an indelible mark and his commitment to our cherished First Amendment freedom of speech will be a legacy for generations to come. I count it a privilege to have argued before him and wish him and his family all the best in the years ahead.”Second Executive Pleads Guilty to Participating in Capacitors Price-Fixing ConspiracyRead the Press Release
Tokuo Tatai, an executive of Japan-based capacitor manufacturer Elna Co. Ltd., pleaded guilty for his role in a conspiracy to fix prices and rig bids for electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today.
A December 2016 indictment, filed in the U.S. District Court of the Northern District of California, charged Tatai with participating in a conspiracy to suppress and eliminate competition of electrolytic capacitors by fixing prices and rigging bids. The charge alleges that Tatai participated in the conspiracy from January 2009 to January 2012. In addition to pleading guilty, Tatai has agreed to serve a prison term of a year and a day and to cooperate with the Antitrust Division’s ongoing investigation.
“The Antitrust Division will hold accountable foreign nationals who participate in conspiracies that harm American consumers,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “This capacitors conspiracy affected millions of American consumers who use electronic devices in their everyday lives.”
Electrolytic capacitors store and regulate electrical current in a variety of electronic products, including computers, televisions, car engine and airbag systems, home appliances and office equipment.
Today’s charges result from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the electrolytic capacitors industry. Eight companies and 10 individuals have been charged in the division’s ongoing investigation. The investigation is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office.
Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the capacitors industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at 415-553-7400.
Ohio Man Charged with Federal Hate Crimes Related to August 2017 Rally in CharlottesvilleRead the Press Release
James Alex Fields Jr. Indicted on 30 Counts Including Hate Crime Resulting in the Death of Heather Heyer
A federal grand jury sitting in the U.S. District Court for the Western District of Virginia in Charlottesville today charged an Ohio man with federal hate crimes, including a hate crime act that resulted in the death of Heather Heyer, for his actions during the Aug. 12, 2017 “Unite the Right Rally” in Charlottesville. Attorney General Jeff Sessions, FBI Director Christopher Wray, Acting Assistant Attorney General John Gore of the Civil Rights Division, United States Attorney Thomas T. Cullen of the Western District of Virginia, and Special Agent in Charge of the FBI’s Richmond Division Adam S. Lee, made the announcement.
James Alex Fields Jr., 21, of Maumee, Ohio, was charged in an indictment returned earlier today with:
- one count of a hate crime act resulting in the death of Heather Heyer (18 U.S.C. § 249);
- 28 counts of hate crime acts causing bodily injury and involving an attempt to kill (18 U.S.C. § 249); and
- one count of racially motivated violent interference with a federally protected activity (18 U.S.C. § 245(b)(2)), resulting in the death of Heather Heyer, for driving his car into a crowd of protestors on a downtown street in Charlottesville, Virginia.
“At the Department of Justice, we remain resolute that hateful ideologies will not have the last word and that their adherents will not get away with violent crimes against those they target,” Attorney General Jeff Sessions said. “Last summer’s violence in Charlottesville cut short a promising young life and shocked the nation. Today’s indictment should send a clear message to every would-be criminal in America that we aggressively prosecute violent crimes of hate that threaten the core principles of our nation. I want to thank the FBI as well as our fabulous prosecutors Stephen Curran, Christopher Kavanaugh, and Rachel Kincaid for their hard work on this case.”
“As this case indicates, our office will aggressively prosecute hate crimes and other civil-rights offenses committed because of the actual or perceived race, color, religion, or national origin of any individual or group,” U.S. Attorney Thomas T. Cullen stated. “We are grateful to the FBI and our state and local law-enforcement colleagues who conducted the parallel federal and state investigations in a cooperative fashion, enabling us to vindicate this critical federal interest.”
"Hatred and violence have no place in our communities," said FBI Director Christopher Wray. “The investigation of hate crimes is a top priority of the FBI, and we will continue to work with our partners to ensure those who perpetrate such despicable acts are held accountable.”
“The events of Aug. 12, 2017, in Charlottesville are a grim reminder of why the FBI prioritizes its investigations of civil rights violations among the top of its criminal programs. I hope today will also be a reminder to those who are motivated by hate and intent on committing violence; we are going to be there, just as we were in this case,” said FBI Special Agent in Charge Adam S. Lee of the Richmond Division, who also oversees the office in Charlottesville. “I want to thank the Civil Rights Division and the United States Attorney’s Office for their outstanding partnership, my team of FBI agents and analysts who worked tirelessly to put the case together, and the business owners and residents of Charlottesville who worked with us and provided a massive volume of evidence in this case.”
According to the indictment, on or before Aug. 8, 2017, Fields decided to attend the Unite the Right Rally in Charlottesville, Virginia. The Unite the Right rally was scheduled to occur on Aug. 12, 2017, at Emancipation Park and was widely publicized on social media and internet sites associated with white supremacist individuals and groups.
On the morning of Aug. 12, 2017, Fields arrived in and around the vicinity of Emancipation Park in Charlottesville. Multiple groups and individuals, including Fields, engaged in chants promoting or expressing white supremacist and other racist and anti-Semitic views. After an “unlawful assembly” was declared, rally participants, including Fields, dispersed the area. Fields returned to his vehicle and soon after drove to the vicinity of the intersection of Fourth and East Market streets in downtown Charlottesville.
As alleged in the indictment, Fields drove his car onto Fourth Street, a narrow, downhill, one-way street in downtown Charlottesville. At around the same time, a racially and ethnically diverse crowd of individuals was gathered at the bottom of the hill, at the intersection of Fourth and East Water streets. The indictment alleges that Fields slowly proceeded in his vehicle toward the crowd, stopped, and then observed the crowd while idling in his vehicle. Many of the individuals in the crowd were chanting and carrying signs promoting equality and protesting against racial and other forms of discrimination. With no vehicle behind him, Fields slowly reversed his vehicle to the top of the hill near the intersection of Fourth and Market streets. Fields then rapidly accelerated, ran through a stop sign and across a raised pedestrian mall, and drove directly into the crowd, striking numerous individuals, killing Heather Heyer, and injuring many others. Fields’s vehicle stopped only when it struck another vehicle near the intersection of Fourth and Water streets. He then rapidly reversed his vehicle and fled the scene.
The investigation of the case was conducted by the Federal Bureau of Investigation. United States Attorney Thomas T. Cullen, Assistant United States Attorney Christopher Kavanaugh and Stephen Curran and Rachel Kincaid, trial attorneys with the Civil Rights Division of the Department of Justice, are prosecuting the case for the United States.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
Justice Department Reaches Agreement with Teachers Test Prep to Ensure Equal Access for Individuals with DisabilitiesRead the Press Release
The Justice Department today reached a settlement agreement with Teachers Test Prep Inc, (TTP), to resolve allegations that it violated Title III of the Americans with Disabilities Act (ADA) by not offering its online courses in a manner accessible to individuals who are deaf or hard of hearing and by not providing its one-on-one tutoring sessions in an accessible manner.
TTP offers preparation courses for licensing and credentialing examinations in California. Its services include tutoring, online classes, and live classes at locations throughout California. The Department initiated its investigation in response to a complaint that TTP’s online video courses were inaccessible to deaf individuals because they did not provide closed captions and that TTP failed to offer one-on-one online tutoring in an accessible manner. The complainant enrolled in a TTP course to prepare to take the California Basic Educational Skills Test (CBEST), designed to test basic reading, mathematics, and writing skills. The complainant worked as a school counselor, and her employer required that she pass the CBEST as a condition of her employment. Because TTP’s course was not offered in a manner accessible to deaf individuals, the complainant was denied equal access to TTP’s test preparation services.
“Exam preparation courses should be provided in a manner that is accessible to individuals with disabilities,” said Acting Attorney General John Gore of the Civil Rights Division. “The Department of Justice will work to ensure that individuals who are deaf or hard of hearing have an equal opportunity to participate in such courses.”
The ADA mandates that a private entity that offers test preparation courses, such as TTP, provide its services in a manner accessible to individuals with disabilities. It also requires TTP to make modifications to its courses as are necessary to ensure that the courses are accessible to individuals with disabilities and to provide appropriate auxiliary aids and services, unless TTP can demonstrate that doing so would fundamentally alter the course or would result in an undue burden.
Under the two-year agreement, TTP will adopt ADA course-modification policies and procedures; provide ADA training to its staff; caption its online video content; and provide notice on its website about how to request course modifications and auxiliary aids or services, including sign language interpreters. In addition, TTP will pay the complainant $5,000 and allow the complainant to enroll in another course free of charge.
Those interested in finding out more about this settlement or the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
NOTE: The settlement agreement can be found here.
Court Shuts Down Idaho Tax Return PreparerRead the Press Release
A federal court in Boise, Idaho permanently enjoined Jonathan Peirsol from preparing federal income tax returns for others, the Justice Department announced yesterday. Peirsol consented to the civil injunction order and admitted the allegations in the complaint. He previously pleaded guilty to aiding and assisting in the preparation of a false tax return and, in May 2017, was sentenced to 12 months and one day in prison.
According to the civil complaint, Peirsol prepared false income tax returns by adding fictitious itemized deductions without the knowledge or consent of his customers, including, most commonly, fraudulent medical expenses. Peirsol also added false education expenses to his customers’ income tax returns without their knowledge or consent, as alleged in the complaint. The complaint states that Peirsol’s conduct caused at least $62,441 in tax loss.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips 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 with details.
Statement from Attorney General Jeff Sessions on Today's Supreme Court Decision in Favor of the Trump Administration in Trump v. HawaiiRead the Press Release
Today Attorney General Jeff Sessions issued the following statement on the Supreme Court's decision in Trump v. Hawaii:
“Today is a great victory for the safety and security of all Americans. The Constitution and Acts of Congress confer on the President broad discretion to protect the interests of the United States. Today’s decision is critical to ensuring the continued authority of President Trump – and all future presidents – to protect the American people. We will continue to take and defend all lawful steps necessary to protect this great nation.”Statement from Attorney General Jeff Sessions on Today's Free Speech Supreme Court Decision in Favor of Pro-Life Pregnancy Centers (NIFLA v. Becerra)Read the Press Release
Today Attorney General Jeff Sessions issued the following statement on the Supreme Court's ruling in NIFLA v. Becerra:
“We are pleased that today’s decision protects Americans’ freedom of speech. Speakers should not be forced by their government to promote a message with which they disagree, and pro-life pregnancy centers in California should not be forced to advertise abortion and undermine the very reason they exist. This Department will continue to vigorously defend the freedom of all Americans to speak peacefully in accord with their deeply held beliefs and conscience."Justice Department Settles Claims Against Landscaping Company for Discriminating Against U.S. WorkersRead the Press Release
The Justice Department today reached a settlement agreement with Triple H Services LLC, (Triple H), a landscaping company based in Newland, North Carolina, that conducts business in Virginia and four other states. The agreement resolves the Department’s investigation into whether Triple H discriminated against qualified and available U.S. workers based on their citizenship status by preferring to hire temporary workers with H-2B visas, in violation of the Immigration and Nationality Act (INA).
The Department’s investigation found that although Triple H went through the motions of advertising over 450 landscape laborer vacancies in five states, it did so in a manner that misled U.S. workers about the available positions and prevented or deterred some from applying. The Department found that Triple H did not consider several qualified U.S. workers who applied for positions in Virginia during the recruitment period, and instead hired H-2B visa workers. In several states where jobs were available, the Department found that Triple H prematurely closed the online job application process for U.S. worker applicants, filled positions with H-2B visa workers without first advertising the jobs to U.S. workers in the relevant locations, or advertised vacancies in a manner that did not make the postings visible to job seekers using state workforce agency online services.
The Department concluded that in taking these actions, Triple H effectively denied U.S. workers access to jobs based on its preference for hiring temporary H-2B visa workers to fill the positions. Refusing to consider or hire qualified and available U.S. workers based on their citizenship status violates the INA’s anti-discrimination provision, regardless of whether an employer has complied with other rules governing the use of temporary employment-based visa programs.
Under the settlement, Triple H must establish a back pay fund, with a cap of $85,000, to compensate certain individuals who were harmed by its practices. The agreement also requires Triple H to pay $15,600 in civil penalties, engage in enhanced recruitment activities to attract U.S. workers, and be subject to Departmental monitoring for a three-year period.
“Federal law prohibits employers from discriminating against U.S. workers in hiring because of their citizenship status,” said Acting Assistant Attorney General John Gore. “The Department will continue to fight to ensure that U.S. workers are not disadvantaged because of their citizenship status. I commend Triple H for its cooperation with the Department and its willingness to undertake efforts to recruit U.S. workers that go well beyond the minimum requirements for participation in the H-2B visa worker program.”
Today’s settlement is part of 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. Under this Initiative, the Civil Rights Division has opened dozens of investigations, filed one lawsuit, and reached settlement agreements with three employers. Since the Initiative’s inception, employers have agreed to pay or have distributed over $285,000 in back pay to affected U.S. workers. The Division has also increased its collaboration with other federal agencies 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.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to: 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 should contact IER’s worker hotline for assistance.
First Nationwide Undercover Operation Targeting Darknet Vendors Results in Arrests of More Than 35 Individuals Selling Illicit Goods and the Seizure of Weapons, Drugs and More Than $23.6 MillionRead the Press Release
Today, the Department of Justice, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Secret Service (USSS), the U.S. Postal Inspection Service (USPIS) and the U.S. Drug Enforcement Administration (DEA), announced the results of a year-long, coordinated national operation that used the first nationwide undercover action to target vendors of illicit goods on the Darknet. Special Agents of the HSI New York Field Division, in coordination with the U.S. Attorney’s Office for the Southern District of New York, posed as a money launderer on Darknet market sites, exchanging U.S. currency for virtual currency. Through this operation, HSI New York was able to identify numerous vendors of illicit goods, leading to the opening of more than 90 active cases around the country. The Money Laundering and Asset Recovery Section (MLARS) of the Department of Justice’s Criminal Division, working with more than 40 U.S. Attorney’s Offices throughout the country, coordinated the nationwide investigation of over 65 targets, that lead to the arrest and impending prosecution of more than 35 Darknet vendors.
These results were announced by Deputy Attorney General Rod J. Rosenstein, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Special Agent-in-Charge Angel M. Melendez of HSI New York Field Office, Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service (USPIS) New York Division, Assistant Director Kenneth Jenkins of the U.S. Secret Service (USSS) Office of Investigations, and Special Agent in Charge James J. Hunt of the U.S. Drug Enforcement Administration (DEA) New York Division.
“Criminals who think that they are safe on the Darknet are wrong,” said Deputy Attorney General Rosenstein. “We can expose their networks, and we are determined to bring them to justice. Today, we arrested more than 35 alleged Darknet vendors. We seized their weapons, their drugs, and $23.6 million of their ill-gotten gains. This nationwide enforcement effort will reduce the supply of deadly drugs like fentanyl that are killing an unprecedented number of Americans. I want to thank our federal prosecutors, and the dedicated federal agents with DEA, Homeland Security Investigations, the Postal Inspection Service, and the Secret Service for their outstanding work.”
“The Darknet is ever-changing and increasingly more intricate, making locating and targeting those selling illicit items on this platform more complicated. But in this case, HSI special agents were able to walk amongst those in the cyber underworld to find those vendors who sell highly addictive drugs for a profit,” said HSI Acting Executive Associate Director Benner. “The veil has been lifted. HSI has infiltrated the Darknet, and together with its law enforcement partners nationwide, it has proven, once again, that every criminal is within arm’s reach of the law.”
“Postal Inspectors and their law enforcement partners will spare no resource or expense to shine a light on the sale and distribution of illicit and dangerous items on the Darknet, that serve to destroy the lives of many through addiction and despair,” said Inspector in Charge Rendina. “Today’s announcement of our law enforcement partnership and operation sends a strong message to those who choose this illegal path, we are watching and will bring you to justice for your crimes against the American public.”
“The Secret Service is proud to work with our law enforcement partners to help combat one of the largest threats to the U.S. financial infrastructure, money laundering with virtual currency,” said U.S. Secret Service Assistant Director Jenkins. “The Secret Service continues to adapt along with these cyber criminals to maintain our level of success in stopping them.”
“At this crucial time of unprecedented drug related deaths, one of the greatest threats we face is cyber drug trafficking,” said DEA Special Agent in Charge Hunt. “Because the Darknet invites criminals into our homes, and provides unlimited access to illegal commerce, law enforcement is taking steps to identify and arrest those involved. I applaud all the agencies who participated in this groundbreaking investigation.”
The extensive operation, which culminated in four weeks of more than 100 enforcement actions around the country, resulted in the following:- Federal arrests of more than 35 Darknet vendors who engaged in tens of thousands of sales of illicit goods;
- Execution of 70 search warrants, resulting in the seizure of massive amounts of illegal narcotics, including 333 bottles of liquid synthetic opioids, over 100,000 tramadol pills, 100 grams of fentanyl, more than 24 kilograms of Xanax, and additional seizures of Oxycodone, MDMA, cocaine, LSD, marijuana, and a psychedelic mushroom grow found in a residence;
- Seizure of more than 100 firearms, including handguns, assault rifles, and a grenade launcher;
- Seizure of five vehicles that were purchased with illicit proceeds and/or used to facilitate criminal activity;
- Seizure of more than $3.6 million in U.S. currency and gold bars;
- Seizure of nearly 2,000 Bitcoins and other cryptocurrencies, with an approximate value of more than $20 million;
- Confiscation of 15 pill presses, which are used to create illegal synthetic opioids; and
- Seizure of Bitcoin mining devices, computer equipment, and vacuum sealers.
Amongst those charged federally, include:
- Antonio Tirado, 26, and Jeffrey Morales, 32, of the Bronx, New York, were arrested on June 18, and separately charged by the U.S. Attorney’s Office for the Southern District of New York with distribution and possession with intent to distribute narcotics, including cocaine, LSD (also known as “acid”), marijuana, and hashish oil. Additionally, Tirado was charged with possession of a firearm in furtherance of his drug trafficking offenses. Following an investigation into a Darknet marketplace vendor using the moniker “Trapgod,” investigators executed search warrants at homes in two residential neighborhoods in the Bronx leading to Tirado and Morales. As alleged in the complaints, during the execution of the search warrants at the Tirado and Morales residences, agents seized controlled substances including powder cocaine, marijuana, and LSD, as well as various precursor powders, liquids, and reagents, and other narcotics-related paraphernalia including marijuana growing equipment, a home chemistry lab, scales, and heat sealing packaging materials. In Tirado’s home, agents recovered a fully loaded shotgun alongside a narcotics stash. Investigators in Tirado’s apartment recovered additional evidence of Darknet narcotics distribution, such as numerous U.S. Postal Service shipping boxes, already addressed to customers around the United States, which boxes contained hairbrushes some of which had already been packed with powder cocaine for distribution.
- Jian Qu, 30; Raymond Weng, 24; and Kai Wu, 22, all of Queens, New York, along with Dimitri Tseperkas, 22, and Cihad Akkaya, 22, of Middle Island and Port Jefferson, New York, respectively, were each arrested on June 18, and charged by the U.S. Attorney’s Office for the Southern District of New York with participation in a conspiracy to distribute more than 1,000 kilograms of marijuana. Tseperkas and Akkaya were also charged with firearms offenses relating to the drug conspiracy. Investigators monitoring Darknet marketplaces found accounts used by some of the conspirators, leading agents to execute search warrants at three addresses in residential communities in Flushing and Mt. Sinai, New York. From the residences, agents recovered approximately $400,000 in U.S. currency, 140 kilograms of suspected marijuana and an additional 10 kilograms of suspected marijuana vape cartridges, 12 kilograms of suspected Xanax pills, over half a kilogram of suspected ecstasy, four pill presses, mixers, and pill press parts, over a dozen kilograms of various powders, packaging materials, and paraphernalia. While searching the residence where Akkaya and Tseperkas were found, investigators recovered three loaded shotguns, including a tactical double-barreled shotgun loaded with 14 shells, and over 50 shotgun shells, as well as significant quantities of narcotics, packaging materials, and paraphernalia including a money-counting machine. Review of electronic evidence recovered from the residences proved the conspirators’ connections to Darknet marketplaces, use of cryptocurrency, and narcotics distribution schemes.
- Ryan Farace, 34, of Reisterstown, Maryland, and Robert Swain, 34, of Freeland, Maryland, were charged by the U.S Attorney’s Office for the District of Maryland related to a scheme to manufacture and distribute alprazolam tablets, which are typically sold under the brand name “Xanax.” The indictment alleges that Farace distributed the drugs through sales on the dark web in exchange for Bitcoin, and that Farace and Swain laundered the drug proceeds through financial transactions designed to conceal the source and ownership of the illegal funds. To date, law enforcement has seized various crypto currency, to include bitcoin, valued at over $22 million at the time of the seizures, and over $1.5 million in cash, which was seized from Farace’s residence upon the execution of a search warrant on Jan. 18. As part of the indictment, the government seeks the forfeiture of no less than $5.665 million, plus the value of 4,000 Bitcoin believed to be the proceeds of the illegal drug sales, two residences, and a vehicle used to facilitate the drug distribution.
- Nicholas J. Powell, 32, and Michael Gonzalez, 27, former and current residents of Parma, Ohio, respectively, were charged by the U.S. Attorney’s Office for the Northern District of Ohio with conspiracy to distribute controlled substances and laundering money using the dark web. The complaint alleges that Powell used various monikers on Darknet marketplaces as part of his criminal scheme, including “TheSource,” “BonnienClyde,” BnC,” “BCPHARMA,” and “Money TS.” The conspiracy operated on multiple Darknet marketplaces, including Silk Road 2, AlphaBay, and HANSA. The conspiracy involved distributing Xanax, steroids, marijuana and other drugs across the country using these and other Darknet monikers. Powell and Gonzalez would then launder the funds as cryptocurrencies such as Bitcoin, Etherium, and Komodo through individuals specializing in money laundering on Darknet marketplaces. At the time of arrest, law enforcement had already seized approximately $437,000 in cryptocurrencies from Powell.
- Jose Robert Porras III, 21, and Pasia Vue, 23, both of Sacramento, were charged with drug distribution, money laundering, and illegally possessing firearms, in a 16-count indictment returned by a grand jury in the Eastern District of California. According to the indictment, Porras and Vue were using the online monikers “Cannabars” and “TheFastPlug,” to distribute marijuana, Xanax, and methamphetamine on various dark web marketplaces, including Trade Route, Wall Street Market, and Dream Marketplace. Porras and Vue then laundered the Bitcoin proceeds of their drug distribution through the HSI undercover agent located in New York. After receiving the Bitcoin from Porras and Vue, the undercover agent mailed parcels of cash to them in Sacramento. HSI and USPIS agents seized nine weapons including an AK-47 magazine and ammunition, 30 pounds of marijuana, $10,000 in U.S. currency, a vehicle, and over 100 bars of Xanax.
- Sam Bent, 32, of St. Johnsbury, Vermont (and formerly of East Burke, Vermont), and his cousin, Djeneba Bent, 26, also of St. Johnsbury (and formerly East Burke) were charged with conspiracy to distribute LSD, MDMA (also known as “ecstasy”), cocaine, and marijuana in an indictment returned by a federal grand jury in the District of Vermont. The indictment alleges that the conspiracy involved setting up accounts on dark web marketplaces, establishing online identities, accepting Bitcoin in exchange for sales over the dark web, and mailing controlled substances from several different post offices in Northeastern Vermont and Northwestern New Hampshire in an effort to avoid detection. The indictment also charges Sam Bent with four counts of money laundering involving three different exchanges of bitcoin drug distribution proceeds for U.S. currency.
- In Fresno, California, a federal grand jury returned an 11-count indictment on May 17, against Daniel Boyd McMonegal, 35, of San Luis Obispo and Mariposa, California, charging him with drug distribution and money laundering in the Eastern District of California. According to the indictment, McMonegal, using the online monikers “Sawgrass,” “Ross4Less,” and “ChristmasTree,” distributed marijuana on various dark web marketplaces, including Dream Market. McMonegal was also the owner of a marijuana delivery service in San Luis Obispo called West Coast Organix, which claimed to be a non-profit medical marijuana cooperative. McMonegal then laundered the Bitcoin proceeds of his drug distribution through an undercover agent located in New York. After receiving the Bitcoin from McMonegal, the undercover agent mailed parcels of cash to McMonegal in San Luis Obispo and Mariposa.
More than 50 Darknet vendor accounts were identified and attributed to the real individuals selling illicit goods on Darknet market sites such as Silk Road, AlphaBay, Hansa, Dream, and others. HSI-New York Field Division and MLARS coordinated with law enforcement and federal prosecutors to investigate 65 targets identified by the undercover operation in more than 50 Federal districts, including: the District of Arizona, the Eastern District of Arkansas, the Western District of Arkansas, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the Middle District of Florida, the Northern District of Florida, the Southern District of Florida, the Northern District of Iowa, the District of Kansas, the District of Maryland, the Eastern District of Michigan, the District of Minnesota, the Eastern District of North Carolina, the Western District of North Carolina, the District of New Hampshire, the Northern District of New York, the Southern District of New York, the Western District of New York, the District of North Dakota, the Northern District of Ohio, the Southern District of Ohio, the District of Oregon, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Carolina, the District of South Dakota, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the Western District of Texas, the Eastern District of Virginia, the District of Vermont, the Eastern District of Washington, and the Western District of Washington. FBI was part of the investigative team in the Northern District of California.
The investigation is ongoing.Department of Justice Announces $110 Million Set Aside Grant Program to Assist Crime Victims in Indian CountryRead the Press Release
This year, for the first time, the 2018 Commerce, Justice, Science, and Related Agencies Appropriations Act provides for three percent of funds from the Crime Victims Fund to be used to support a broad set-aside program for Indian tribes to improve services to crime victims.
The Justice Department’s Office for Victims of Crime (OVC) is seeking applications for the FY 2018 Tribal Victim Services Set-Aside Program solicitation. Under the solicitation, OVC will award eligible tribes, tribal consortia, and tribal designees grants to support a wide-range of services for victims of crime. OVC anticipates making up to $110 million available through this solicitation to support tribes to improve victim services.
The Department of Justice has long recognized the critical need to fully and more effectively support American Indian and Alaska Native (AI/AN) victims of crime. In recent years, the department has conducted numerous tribal consultations and listening sessions to learn more about the needs and resources associated with supporting AI/AN crime victims. The FY 2018 set-aside program has expanded the types of crimes addressed to cover victims of human trafficking; victimization as a result of opioid/drug-related crisis, child abuse and neglect, as well as victims of cybercrime and financial crime, among other areas.
In developing the scope of activities allowable with this funding, OVC took into account input from tribal leaders and other stakeholders regarding needs for victim services in tribal communities. This solicitation has a streamlined, two-phase application process for this unique program.
OVC will conduct a Phase 1 pre-application webinar on Thursday, June 28. Webinar participation is optional but strongly encouraged. OVC staff will review the solicitation requirements and conduct a question and answer session with interested potential applicants. Phase 1 applications are due on August 6, 2018.
To find out more about the tribal set-aside program and to register for the webinar online, visit here.
Current and Former Supervisory Corrections Officers Indicted for Use of Unreasonable Force and Obstruction of JusticeRead the Press Release
Federal indictments were unsealed today charging current and former supervisory corrections officers at the Cheatham County Jail in Ashland City, Tennessee, with federal civil rights and obstruction offenses, announced Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Don Cochran of the Middle District of Tennessee. Former Corporal Mark Bryant is charged with two counts of deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242, and two counts of obstruction of justice, in violation of Title 18, United States Code, Section 1519. Sergeant Gary Ola is charged with two counts of making false statements to federal investigators, in violation of Title 18, United States Code, Section 1001. Both were arrested earlier today and will make initial appearances before a U.S. Magistrate Judge later this afternoon.
Bryant’s indictment alleges that, on Nov. 5, 2016, he twice used unlawful force on a restrained 18-year-old detainee inside the jail. In the first incident, Bryant used a Taser to stun the detainee four times for a total of approximately 50 seconds while the detainee was in a restraint chair. In a second incident that occurred on the same night, Bryant tased the detainee for approximately 11 seconds without legitimate justification after the detainee was placed in handcuffs and surrounded by multiple officers. As a result of these unjustified uses of force, the detainee sustained bodily injury. The indictment further charges that Bryant obstructed justice by submitting false reports about both incidents.
Ola’s indictment alleges that he made materially false statements to investigators in two separate interviews during the investigation of Bryant’s Taser usage. In August 2017, Ola falsely told agents with the FBI and Tennessee Bureau of Investigation that he walked away from Bryant and did not see one or more of the Taser cycles that Bryant used on the restrained detainee. In a second interview with the FBI in May 2018, Ola stated falsely that he did not see Bryant tase the detainee after officers placed the detainee in handcuffs.
If convicted, Bryant faces a maximum sentence of 10 years in prison for the color of law charges and 20 years in prison for the obstruction charges, three years of supervised release, and a fine of up to $250,000. Ola faces a maximum sentence of five years in prison, three years of supervised release, and a fine of up to $250,000.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent unless proven guilty.
These cases were investigated by the Federal Bureau of Investigation, and are being prosecuted by Assistant U.S. Attorney Sara Beth Myers of the Middle District of Tennessee’s Nashville Office and Civil Rights Division Trial Attorney Michael J. Songer.
The Bureau of Justice Assistance Announces over $2 Million to Support Nevada Law Enforcement and First Responders from Las Vegas Mass ShootingRead the Press Release
The U.S. Department of Justice’s Bureau of Justice Assistance (BJA) today awarded $2,000,100 to the State of Nevada to cover expenses related to the law enforcement response to the Oct.1, 2017, mass shooting in Las Vegas. The shooting, which occurred during a country music festival, left 58 people dead and over 500 injured.
State and local law enforcement agencies mobilized officers who responded to the shooting and carried out critical operations and support. This award, which supplements an earlier award of $1 million announced last October, will reimburse the agencies for continued expenses resulting from services provided by sworn and non-sworn law enforcement personnel, including protecting and safeguarding those directly affected, including members of the public and local, and state personnel who responded to the tragedy.
"In this Department of Justice, we back the blue," said Attorney General Jeff Sessions. "That’s why, when there is a tragedy, we are there for police and first responders. Today we continue to help state and local police in Nevada to rebuild after the deadliest mass shooting in American history, providing a total of $3 million to cover their expenses since that terrible day. We honor and respect the 85 percent of law officers in this country who serve at the state, local, and tribal levels, and we continue to support them and their life-saving work every single day."
BJA invited the Nevada Department of Public Safety to apply for funding under the Bureau of Justice Assistance Fiscal Year 2018 Emergency Federal Law Enforcement Assistance Program. This program supports the Department of Justice’s mission of reducing crime and supporting public safety personnel in the context of an emergency situation in which state and local resources may be inadequate to protect the lives and property of citizens or to enforce criminal law.
For more information about the Bureau of Justice Assistance please visit www.bja.gov
Justice Department Settles Immigration-Related Discrimination Claims Against J.C. PenneyRead the Press Release
The Justice Department today announced that it has reached a settlement agreement with J.C. Penney Corporation, Inc. (J.C. Penney). The agreement resolves two investigations, one into whether J.C. Penney unlawfully rejected a lawful permanent resident’s valid work authorization documentation, and the other into whether J.C. Penney violated the Immigration and Nationality Act (INA) by unlawfully reverifying the work authorization of certain non-U.S. citizens based on their citizenship status.
The Department’s first investigation was prompted by a lawful permanent resident’s charge alleging that J.C. Penney violated the INA’s anti-discrimination provision when J.C. Penney fired her in August 2016. The investigation found that J.C. Penney had improperly rejected the worker’s unexpired Permanent Resident Card as proof of her work authorization, based on her citizenship status. The second investigation found that J.C. Penney had unlawfully reverified the work authorization of certain non-U.S. citizens solely based on their citizenship status, even though those non-citizens had presented the same type of valid work authorization documents as U.S. citizens when first hired. The Department also found that J.C. Penney unlawfully requested specific immigration documents from certain workers during the process of reverifying their work authorization because of their immigration status. Among other things, the INA prohibits employers from (1) rejecting valid work authorization documents, (2) limiting a worker’s choice of documentation to present for employment verification or reverification purposes, and (3) subjecting employees to different or unnecessary documentary demands, based on the employee’s citizenship, immigration status, or national origin.
Under the terms of the settlement, J.C. Penney will pay a civil penalty of $14,430 to the United States, provide $11,177.60 in back pay to the worker who filed the charge, train its staff and corporate human resources personnel, post notices informing workers about their rights, and be subject to departmental monitoring and reporting requirements.
“Employers should not impose unlawful and discriminatory burdens on employees based on their citizenship or immigration status during the reverification process,” said Acting Assistant Attorney General John Gore. “It is critical for all employers to correctly train their employees on proper Form I-9 procedures at both initial hiring and reverification, and I am pleased that J.C. Penney has agreed to undertake such training.”
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, 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.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship/immigration status or national origin, or discrimination based on their citizenship/immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.