District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Tennessee Man Indicted for Filing False Retaliatory Liens and Committing Tax CrimesRead the Press Release
A federal grand jury has returned an indictment, which was unsealed today, against a Rogersville, Tennessee resident charging him with obstruction of the internal revenue laws, filing fraudulent multi-million dollar liens against government employees, and filing false claims for tax refunds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, Brian Leo Snow obstructed the internal revenue laws over a period of at least nine years by, among other things, filing false tax returns; filing false UCC Financing Statements against individuals seeking to collect his back taxes; and by filing a document with Hawkins County Register of Deeds in an attempt to terminate tax liens filed against him by the IRS.
The indictment further alleges that Snow has not filed timely and accurate income tax returns in almost two decades and owes the IRS over $150,000 in taxes. In response to IRS collection efforts, Snow allegedly filed false retaliatory liens worth millions of dollars against government officials including an IRS revenue officer, an Assistant United States Attorney, and a federal judge.
The indictment also charges that Snow filed three false claims with the IRS claiming over $144 million in tax refunds to which he was not entitled.
If convicted, Snow faces a statutory maximum sentence of five years in prison on the tax obstruction charge, 10 years in prison on each of the false retaliatory lien counts, and five years in prison on each of the false claims counts. In addition, he faces a period of supervised release and monetary penalties. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.
Bumble Bee CEO Indicted for Price FixingRead the Press Release
A federal grand jury returned an indictment against Christopher Lischewski, the President and Chief Executive Officer of Bumble Bee Foods LLC, for participating in a conspiracy to fix prices for packaged seafood sold in the United States, the Department of Justice announced today.
The indictment, filed in the U.S. District Court for the Northern District of California in San Francisco, charges Lischewski with participating in a conspiracy to fix prices of packaged seafood beginning in or about November 2010 until December 2013.
“The Antitrust Division is committed to prosecuting senior executives who unjustly profit at the expense of their customers,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “American consumers deserve free enterprise, not fixed prices, so the Department will not tolerate crimes like the one charged in today’s indictment.”
“This indictment demonstrates the personal accountability of senior leadership at corporations,” said Special Agent in Charge John F. Bennett. “The FBI and the Department of Justice will hold corporate leaders accountable for criminal actions that defraud American families.”
The one-count felony indictment charges that Lischewski carried out the conspiracy by agreeing to fix the prices of packaged seafood during meetings and other communications. The co-conspirators issued price announcements and pricing guidance in accordance with these agreements. Bumble Bee has already pleaded guilty and been sentenced to pay a criminal fine of at least $25 million as a result of the government’s ongoing investigation.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Lischewski is the fourth individual to be charged as a result of the ongoing federal antitrust investigation into the packaged seafood industry, which 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 packaged-seafood industry should contact the Antitrust Division’s San Francisco Office at (415) 934-5300, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at (415) 553-7400.
Justice Department Reaches Agreement with the City and County of Denver to Resolve Disability Discrimination ComplaintRead the Press Release
The Justice Department today announced that it reached an agreement with the City and County of Denver, Colorado, (Denver) to resolve its lawsuit alleging that the Denver Sheriff Department discriminated against a long-time Deputy Sheriff on the basis of his disability, insulin-dependent diabetes. The Justice Department’s complaint alleges that Denver failed to engage in an interactive process with the employee to determine an appropriate accommodation, failed to reasonably accommodate his disability, and then terminated him, in violation of the Americans with Disabilities Act (ADA).
Under the agreement, Denver will revise its reasonable accommodation policies and procedures, and will conduct training on the ADA for Sheriff Department supervisors, command staff, and human resources personnel. In addition, Denver will pay $100,000 in compensatory damages to the employee.
“The ADA generally requires employers to provide reasonable accommodations to employees with disabilities, including those with chronic conditions like insulin-dependent diabetes,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We commend the City and County of Denver Sheriff Department for committing to changing its policies, training its staff, and compensating the employee.”
This matter was based on a referral from the Equal Employment Opportunity Commission’s Denver Office, which completed the initial investigation of the facts.
To read the settlement agreement, please click here, and to read the complaint, please click here. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the Civil Rights Division’s Disability Rights Section, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Justice Department Announces Improvements to Public Safety Officers’ Benefits ProgramRead the Press Release
Today, the U.S. Department of Justice announced improvements to the Public Safety Officers’ Benefits Program (PSOB), including provisions that address claims involving fatal heart attacks, strokes, and vascular ruptures, and claims involving officers injured in the attacks on September 11, 2001.
"At this Department of Justice, we back the blue," said Attorney General Sessions. "Officers killed or wounded in the line of duty and their families deserve our gratitude and our support. That's why we are determined to make improvements to the Public Safety Officers' Benefits Program, which provides for them when they need it most. We are making it simpler to apply for benefits for those who are injured. We have already made significant progress in reducing the time for application processing. Now, we are also doing our part to help some of the brave first responders who are suffering from the effects of the September 11th terrorist attacks. We will continue our efforts to improve officer safety and well-being—because these heroic Americans put their lives on the line for us every day."
The Public Safety Officers’ Benefits (PSOB) Program provides death and education benefits to the eligible survivors of fallen law enforcement officers, firefighters, and other first responders, and disability benefits to officers catastrophically injured in the line of duty.
The final rule announced today streamlines provisions related to claims for certain heart attack, stroke, and vascular rupture cases, and clarifies that injuries sustained by certain law enforcement and firefighter trainees are covered by the Program. The rule also aligns the PSOB Program with certain provisions under the World Trade Center (WTC) Health Program and the September 11th Victim Compensation Fund (VCF), in addition to addressing other gaps in regulations, and improving the efficiency of the PSOB Program claims process.
Improvements and updates to the Program include:- Heart Attack, Stroke, and Vascular Rupture Claims: The new rule helps implement a change in the law that reduces the need in many cases for families to submit difficult-to-find and costly medical records for their loved ones. This regulatory change alone positively impacts nearly one-third of the PSOB death claims filed each year.
- Filing Process: The new rule includes administrative updates to make filing claims more straightforward and less burdensome for survivors and public safety agencies.
- Law Enforcement and Firefighter Trainees: Recognizing the dangerous nature of law enforcement and fire suppression, and the rigorous training required to help keep communities safe, the new rule clarifies the coverage of certain individuals fatally or catastrophically injured during formal training provided by law enforcement and fire academies.
- September 11th Exposure Claims: The new rule facilitates the PSOB Program’s medical examiners’ review of the nearly 150 claims pending for certain public safety officers who responded to the September 11th attacks to assist in rescue, recovery, and clean-up efforts, and who were exposed to hazards and toxins resulting from the attacks.
The final rule can be found here: https://www.federalregister.gov/documents/2018/05/15/2018-09640/public-safety-officers-benefits-program.Former City of Detroit Employee Pleads Guilty to Embezzling $265,000 from the CityRead the Press Release
A former City of Detroit employee, Masharn Franklin, 53, of Detroit, pleaded guilty today to embezzling $265,000 from the city, announced United States Attorney Matthew Schneider.
Franklin was employed by the City of Detroit in its audit and payroll department in 2016 and 2017. During that time, Franklin was responsible for overseeing the execution of garnishment orders for the salaries of Detroit city employees. While so employed, Franklin concocted a scheme to embezzle hundreds of thousands of dollars from the city by causing money to be “garnished” from city funds in the names of Franklin’s relatives. Once the city had issued checks in the names of Franklin’s relatives in the amounts dictated by Franklin, Franklin then deposited the checks into bank accounts held jointly by her and her relatives. As a result of her embezzlement scheme, Franklin stole approximately $265,573 from the City of Detroit. The FBI has already seized $58,000 in criminal proceeds from Franklin’s bank accounts.
Schneider was joined in the announcement by Timothy Slater, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
“Defendant Franklin abused her position of trust as an employee in order to steal hundreds of thousands of dollars from the City of Detroit. Today’s conviction demonstrates that the federal authorities will continue to assist the City of Detroit to ensure that such behavior will not be tolerated as the city continues its comeback,” U.S. Attorney Schneider said.
“Masharn Franklin attempted to weaken the successful efforts of Detroit city officials committed to rebuilding faith in the city government by stealing from the residents,” said Timothy R. Slater, Special Agent in Charge of the Detroit FBI. “The FBI will not tolerate those behaviors and remains committed, along with all our Detroit law enforcement partners, to work collectively, bringing those responsible for such acts to justice.”
The embezzlement count for theft from a program receiving federal funds carries a maximum sentence of 10 years imprisonment and a fine of $250,000. Franklin will also be required to pay back all of the $265,573 that she stole from the city.
Franklin is scheduled to be sentenced by United States District Judge Arthur J. Tarnow on August 15, 2018 at 11:00 a.m.
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney David A. Gardey.
Florida Resident Pleads Guilty to Stealing Government Funds and Obstructing the IRSRead the Press Release
WASHINGTON – A resident of Lee County, Florida pleaded guilty today to stealing government funds and corruptly endeavoring to obstruct the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez of the Middle District of Florida.
According to documents filed with the court, Attila Kalmar filed 2007 through 2009 trust returns with the Internal Revenue Service (IRS) in the name of First AK-Open Sec Trust, a nominee entity, seeking more than $480,000 in fraudulent refunds. Kalmar deposited a refund check he received as a result of these filings into a bank account, and then used the proceeds to purchase real property, acquire thousands of dollars in gold coins, and wire money overseas. Kalmar also attempted to impede the internal revenue laws by transferring funds between nominee bank accounts and falsely representing to the IRS that an IRS revenue officer was the trustee for First AK-Open Sec Trust.
Sentencing has not been scheduled. Kalmar faces a statutory maximum sentence of three years in prison for corruptly endeavoring to impede the internal revenue laws and a statutory maximum sentence of 10 years in prison for theft of government funds. He also faces a term of supervised release, restitution, forfeiture, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys William M. Montague, Grace E. Albinson, and Melanie A. Smith of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Canadian Man Pleads Guilty to Conspiracy and to Making A False Claim Against the United StatesRead the Press Release
A Canadian man pleaded guilty today in Rochester, New York to conspiring to defraud the United States and making a false claim against the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney James P. Kennedy Jr. for the Western District of New York.
According to documents filed with the court and evidence introduced at a related trial, Daveanan Sookdeo, 46, formerly of Ontario, Canada, along with other Canadian citizens, conspired to defraud the United States by filing fraudulent claims for income tax refunds with the Internal Revenue Service (IRS). Sookdeo promoted a scheme that involved the falsifying of IRS forms to claim that almost $10 million in income had been withheld by various Canadian financial institutions on the conspirators’ behalf. Based on those bogus withholdings, the conspirators sought refunds from the IRS.
Sookdeo profited from the scheme by charging his coconspirators an upfront fee for the false documents used in the scheme, as well as a percentage of any tax refunds obtained through the scheme. Sookdeo travelled to the United States to open bank accounts and deposited the refund checks and his coconspirators then wire transferred portions of the fraudulent proceeds to Canada.
Sookdeo is the fifth Canadian citizen to be convicted for his role in this scheme. In January 2016, Kevin Cyster of Burlington, Ontario, was sentenced to 135 months in prison after a jury convicted him of conspiring to defraud the United States and commit theft of government funds, making a false claim against the United States and transferring stolen money in foreign commerce. Renee Jarvis, Timothy Johnston, and Jose Compuesto, also of Canada, pleaded guilty to conspiring to defraud the United States and commit theft of government funds. U.S. District Judge Frank P. Geraci scheduled the sentencing for August 27, 2018.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Kennedy thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl and Assistant U.S. Attorney John Field of the Western District of New York, who prosecuted this case.
More information about the Tax Division’s enforcement efforts is available on the Division’s website.
The Justice Department and USCIS Formalize Partnership to Protect U.S. Workers from Discrimination and Combat FraudRead the Press Release
The Department of Justice and U.S. Citizenship and Immigration Services (USCIS) today announced a Memorandum of Understanding (MOU) that expands their collaboration to better detect and eliminate fraud, abuse, and discrimination by employers bringing foreign visa workers to the United States. This new effort improves the way the agencies share information, collaborate on cases, and train each other’s investigators.
The MOU will increase the ability of the agencies to share information and help identify, investigate, and prosecute employers who may be discriminating against U.S. workers and/or violating immigration laws. In 2010, USCIS and the Justice Department’s Civil Rights Division entered into an ongoing partnership to share information about E-Verify misuse and combat employment discrimination, and today’s MOU expands upon the two agencies’ existing partnership.
In 2017, the Civil Rights Division launched the 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 foreign visa workers. Under this Initiative, the Civil Rights Division has opened dozens of investigations, filed one lawsuit, and reached settlement agreements with two employers. Since the Initiative’s inception, employers have agreed to pay or have distributed over $200,000 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.
USCIS administers the nation’s immigration system and adjudicates requests for immigration benefits, including employment-based petitions. To advance the goals of the Buy American and Hire American Executive Order and promote the economic interests of U.S. workers, USCIS is taking concrete steps to ensure the integrity of the employment-based immigration programs and improve its ability to detect and prevent fraud. Among other things, USCIS has created dedicated tip lines for reporting H-1B and H-2B visa fraud and abuse and expanded its site visit programs. USCIS has also worked with other government agencies that have a role in immigration, such as DOJ, to ensure that they efficiently share and appropriately act upon information regarding potential fraud and abuse of immigration programs. For more information, visit the USCIS Buy American and Hire American page.
“In the spirit of President Trump’s Executive Order on Buy American and Hire American, today’s partnership adds to the Civil Rights Division’s tools to stop employers from discriminating against U.S. workers by favoring foreign visa workers,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Division looks forward to expanding its partnerships with USCIS to hold accountable employers that discriminate against U.S. workers based on their citizenship status.”
“Protecting and maintaining the integrity of our immigration system remains a key priority for me, and underpins the exceptional work of the professionals at USCIS,” said USCIS Director L. Francis Cissna. “This agreement enhances the level of coordination among investigators who often work on the same issues at different agencies. Breaking down silos and working with our federal partners to combat employment discrimination will help ensure that U.S. workers have the advocate they need at the highest level.”
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the Immigration and Nationality Act. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation. An employer that prefers to hire temporary foreign visa workers over available, qualified U.S. workers may be discriminating in violation of this law.
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](link sends e-mail); or visit IER’s English and Spanish websites. Applicants or employees who believe they were subjected to retaliation; different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
For more information on USCIS and its programs, please visit uscis.gov or follow us on Twitter (@uscis), Instagram (/uscis), YouTube (/uscis), and Facebook(/uscis).
Federal Court Bars Wichita Tax Return Preparer from Preparing Tax Returns for OthersRead the Press Release
A federal court in Wichita, Kansas, permanently barred Ma Guadalupe Valenzuela (a/k/a Maria Guadalupe Valenzuela a/k/a Lupe Valenzuela, individually and doing business as Servicio de Income Tax) from preparing federal income tax returns for others. The civil injunction order, to which Valenzuela agreed, was signed by Judge Broomes, of the U.S. District Court for the District of Kansas.
In its complaint, the government alleged that Valenzuela unlawfully understated her customers’ income tax liabilities and overstated her customers’ refunds. Valenzuela prepared federal tax returns that lowered her customers’ federal tax liabilities by claiming bogus child tax credits, improper dependency exemptions, and false filing statuses, according to the allegations in the complaint.
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 their 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.
Attorney General Sessions and U.S. Attorney Anderson Recognize Law Enforcement Service and Sacrifice during National Police WeekRead the Press Release
Attorney General Sessions and U.S. Attorney Shawn N. Anderson for the Districts of Guam and the Northern Mariana Islands recognized the service and sacrifice of federal agents and local police officers on the occasion of National Police Week, and commented on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.
“One officer death is too many,” Attorney General Sessions said. “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line- of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks.”
U.S. Attorney Anderson stated, “Those who sacrifice to protect our communities deserve justice. Any act of violence against law enforcement on our islands is unacceptable. Our office will continue to work hard on focused prosecutions and outreach initiatives that promote the safety of agents and officers. We will also take action to combat violent crime in an effort to enhance the important work of our local partners.”
According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 nationwide – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.
Additionally, in 2017 there were 46 law enforcement officers killed in line-of- duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.
For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report, released today.
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.
The names of all 93 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018. So that people across the country can experience this unique and powerful ceremony, the vigil will be livestreamed beginning at 8:00 p.m. EDT on May 13th. To register for this free online event, visit www.LawMemorial.org/webcast.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.
The Guam Police Department will hold its annual Peace Officers’ Memorial Service on May 15, 2018, at 3:30 PM at the GPD’s Hagatna Precinct. The CNMI Department of Public Safety will hold its annual ceremony on May 15, 2018, at 5:00 PM at DPS Central Precinct. These events will honor past fallen law enforcement and remember them for their sacrifices. While no officers were killed in the line of duty on Guam or the CNMI during 2017, several were assaulted.
For more information about other National Police Week events, please visit www.policeweek.org.
To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.
Leader of Guatemalan Drug Trafficking Organization Sentenced to Life in PrisonRead the Press Release
Earlier today, a Guatemalan national was sentenced to life in prison following a March 2016 trial that resulted in a conviction for his participation in an international drug trafficking conspiracy. He was responsible for the distribution of multi-ton quantities of cocaine for illegal importation into the United States.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Raymond Donovan of the U.S. Drug Enforcement Administration (DEA) Special Operations Division made the announcement.
Waldemar Lorenzana-Cordon, 53, was sentenced by U.S. District Judge Colleen Kollar-Kotelly of the U.S. District Court for the District of Columbia.
“Waldemar Lorenzana-Cordon was a drug kingpin whose criminal organization had close ties to the violent Sinaloa Cartel and was responsible for transporting massive amounts of cocaine to be sold on our streets,” said Acting Assistant Attorney General Cronan. “Lorenzana-Cordon’s life sentence sends a powerful message to leaders of drug trafficking organizations that, if they send their poison to our country, the United States and our international partners will work tirelessly to bring them to justice, no matter where in the world they may reside. I thank the dedicated prosecutors of the Criminal Division’s Narcotic and Dangerous Drug Section and law enforcement officers with the Drug Enforcement Administration’s Bilateral Investigations Group for their outstanding work on this important case.”
“One of the world’s most influential drug traffickers now faces American justice and DEA is pleased he will never be in business again,” said DEA Special Agent in Charge Donovan. “Lorenzana-Cordon imported huge amounts of cocaine to the United States for over a decade, helping fuel our nation’s drug epidemic. He conspired with some of the most brutal and destructive drug networks in history, facilitating and coordinating huge shipments for the Sinaloa Cartel, among others. DEA’s work will always focus on these types of investigations: attacking the most powerful, influential global criminal networks and their many facilitators and associates.”
The defendant was convicted on one count of conspiring to unlawfully distribute cocaine for illegal importation into the United States. As proven at trial, the defendant along with his brother, co-defendant Eliu Lorenzana-Cordon, led an international drug trafficking organization with close ties to the Sinaloa Cartel. Between 1996 and 2009, the defendant and his co-conspirators received, stored, and distributed multi-ton quantities of cocaine from Colombia at their properties in Zacapa, Guatemala, for importation into Mexico and then ultimately into the United States. In February, Eliu Lorenzana-Cordon was sentenced to life in prison following a March 2016 trial resulting in a conviction.
On April 27, 2010, the Department of Treasury’s Office of Foreign Asset Control designated the defendant and his brother, Eliu Lorenzana-Cordon, as Specially Designated Narcotics Traffickers pursuant to the Foreign Narcotics Kingpin Designation Act due to their significant roles in international narcotics trafficking and their ties to the Sinaloa Cartel.
The DEA’s Special Operations Division’s Bilateral Investigations Unit and Guatemala City Country Office led the investigation, which was supported by the Organized Crime Drug Enforcement Task Force program, the Criminal Division’s Office of International Affairs, the Chicago Police Department and the governments of El Salvador and Panama provided support and assistance. Finally, and in particular, the Justice Department wishes to convey its gratitude to the government of Guatemala for its steadfast commitment, collaboration and assistance in the investigation, extradition, and prosecution of this case.
Assistant Deputy Chief Michael Lang and Trial Attorney Emily Cohen of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
Justice Department Settles Immigration-Related Discrimination Claim Against University of California, San DiegoRead the Press Release
The Justice Department announced today that it reached a settlement agreement with the University of California, San Diego. The settlement resolves the Department’s investigation into whether the University’s Resource Management and Planning Vice Chancellor Area (RMP) discriminated against workers in violation of the Immigration and Nationality Act (INA) when verifying their continued authorization to work.
The Department’s investigation concluded that the RMP unnecessarily required certain work-authorized immigrants to re-establish their work authorization when their documents expired, based on the citizenship status of those individuals when they were hired. The antidiscrimination provision of the INA prohibits such requests for documents when based on an employee’s citizenship status or national origin.
Under the settlement, the University will pay a penalty to the United States, train its RMP human resources personnel on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring and reporting requirements.
“Employers must comply with anti-discrimination laws, not only when employees are first hired, but throughout their employment,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We will work with the University to ensure that its employment eligibility reverification procedures avoid unnecessary burdens on permanently work-authorized immigrants based on citizenship status.”
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or workers 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, should contact IER’s worker hotline for assistance.
Former Wisconsin Produce Vendor Executive Sentenced to Prison for Tax EvasionRead the Press Release
A former corporate officer of a produce vendor in Johnson Creek, Wisconsin was sentenced today to 18 months in prison for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Scott C. Blader for the Western District of Wisconsin.
According to court documents and information provided to the court, Thomas G. Paine was the Vice President and Treasurer of G.W. Paine Inc., which sold fresh fruit and other produce under the business name Tree Ripe Citrus Company. Paine was responsible for the finance and tax aspects of the business, but failed to file corporate tax returns for tax years 1997 through 2012 and concealed the business’ income from the Internal Revenue Service (IRS) by structuring cash bank deposits in amounts less than $10,000 to evade bank reporting requirements. Paine admitted to causing a tax loss between $250,000 and $550,000.
In addition to the term of imprisonment, U.S. District Court Judge James D. Peterson ordered Paine to serve two years supervised release and to pay restitution of $421,621.99.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Blader commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Elizabeth Altman and Trial Attorney Eric C. Schmale of the Tax Division, who are prosecuted the case.
Former Owner of Plastics Recycling Company Convicted of Tax EvasionRead the Press Release
A jury convicted a former resident of Palm Beach, Florida yesterday, after an eight day trial, of two counts of tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jessie K. Liu for the District of Columbia.
According to the evidence introduced at trial, Michael Sang Han owned and operated Envion, a company that he claimed held the patents on technology used to convert plastics into fuel oil. Han fraudulently induced two individuals to invest in Envion, and then used the investors’ money to pay for his own personal expenses. He evaded paying income taxes on that money by filing false personal tax returns, which significantly underreported his income. In 2010 and 2011, Han directed investor money to be deposited into his personal bank account, spent it, and then lied to and gave incomplete information to his bookkeepers and tax preparers in order to hide the fact that he was using investors’ money to pay his personal expenses.
Han used over $14 million in investor funds to finance his lavish personal lifestyle and spent investor funds on personal expenditures such as private jets, real estate, high-end renovations and interior decorations, and expensive cars such as BMWs, a Range Rover, and a Ferrari. Additionally, Han used millions of dollars of investor funds to replace money he had previously misappropriated from Envion. Han’s evasion resulted in more than $4 million of tax due to the IRS.
U.S. District Judge James E. Boasberg scheduled sentencing for August 1, 2018, at 10:00 am. Han faces a statutory maximum sentence of 5 years in prison on each tax evasion count. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Liu thanked special agents of IRS Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Tax Division Trial Attorney Sarah Ranney and Assistant U.S. Attorneys Derrick Williams and Denise Simmonds, who prosecuted the case, and Paralegal Specialist Brittany Phillips for her valuable assistance during the trial.
Former Currency Trader Indicted for Participating in Antitrust ConspiracyRead the Press Release
A federal grand jury returned an indictment against Akshay Aiyer, a former currency trader at a major U.S. bank, for his alleged role in a conspiracy to manipulate prices in the foreign currency exchange (FX) market, the Justice Department announced today.
The one-count indictment, filed in the U.S. District Court for the Southern District of New York, charges Akshay Aiyer with conspiring to fix prices and rig bids and offers in Central and Eastern European, Middle Eastern, and African (CEEMEA) currencies, which were generally traded against the U.S. dollar and the euro.
According to the indictment, from at least as early as October 2010 through at least July 2013, Aiyer, along with other New York-based CEEMEA traders working for rival banks, participated in a conspiracy designed to suppress competition in order to increase each trader’s profits and decrease each trader’s losses. Aiyer and his co-conspirators carried out this agreement by engaging in near-daily conversations through private electronic chat rooms, telephone calls, and text messages, in which they exchanged trading positions, confidential customer information, planned pricing for customer orders, and other categories of competitively sensitive information. Aiyer and his co-conspirators then used this information to coordinate their live trading in CEEMEA currencies, including, at times, by certain traders refraining from trading against the others. Throughout the conspiracy, Aiyer and his co-conspirators took affirmative steps to conceal their anticompetitive behavior.
“As today’s indictment demonstrates, the Antitrust Division remains committed to holding individuals accountable for anticompetitive conduct that violates the integrity of global financial markets,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.
“Today’s indictment charges the defendant with illegally manipulating the foreign currency exchange market in order to boost earnings, squelch free-market competition, and then cover his tracks,” said FDIC Inspector General Jay N. Lerner. “This case represents a compelling example of coordination among law enforcement partners, and the FDIC OIG remains dedicated to investigate complex crimes which undermine the integrity of our markets and the financial services sector.”
The charge in the indictment carries a maximum penalty of 10 years in prison and a $1 million fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million.
This indictment follows the guilty pleas, on Jan. 4 and 12, 2017, of former CEEMEA traders Jason Katz and Christopher Cummins, respectively, who were charged in connection with the same conspiracy in which Aiyer is alleged to have participated. In addition, on Jan. 10, 2017, Richard Usher, Rohan Ramchandani, and Christopher Ashton—former U.K-based traders for major banks—were indicted for conspiring to fix prices and rig bids for the euro-U.S. dollar currency pair. Trial is set in that matter for October 2018.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The Department of Justice has also charged six major banks in the ongoing investigation into antitrust and fraud crimes in the FX market. On May 20, 2015, Citicorp, JPMorgan Chase & Co., Barclays PLC, and The Royal Bank of Scotland PLC pleaded guilty at the parent level and agreed to pay, collectively, more than $2.5 billion in criminal fines for their participation in an antitrust conspiracy to manipulate the price of the euro-U.S dollar currency pair. Additionally, UBS AG pleaded guilty to manipulating the London Interbank Offered Rate (LIBOR) and other benchmark interest rates, and agreed to pay a $203 million criminal penalty after breaching its December 2012 non-prosecution agreement resolving the LIBOR investigation. On January 25, 2018, BNP Paribas USA, Inc., the former employer of Jason Katz, pleaded guilty to violating the Sherman Act based on its participation in a CEEMEA-related conspiracy, and agreed to pay a $90 million fine.
This investigation is being conducted by the Antitrust Division’s New York Office with the assistance of the FDIC Office of Inspector General, and the FBI’s Washington Field Office. The Criminal Division’s Fraud Section of the Department of Justice also provided substantial assistance in this matter. Anyone with information concerning price fixing or other anticompetitive conduct in the FX market should contact the Antitrust Division’s Citizen Complaint Center at (888) 647-3258, or visit https://www.justice.gov/atr/report-violations.
El Departamento de Justicia Resuelve una Denuncia de Discriminación Relacionada con la Inmigración contra la Universidad de California, San DiegoRead the Press Release
WASHINGTON – El Departamento de Justicia anunció que ha llegado a un acuerdo con la Universidad de California, San Diego. El acuerdo resuelve la investigación por parte del Departamento para determinar si el Área de Gestión de Recursos y Planificación del Vicerrectorado de la Universidad (RMP, por sus siglas en inglés), vulneró la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a inmigrantes con autorización para trabajar a la hora de verificar su autorización continua para trabajar.
Con base en su investigación, el Departamento concluyó que el RMP les exigió innecesariamente a ciertos inmigrantes autorizados para trabajar que volvieran a demostrar su autorización para trabajar por motivos del estatus de ciudadanía que tenían cuando fueron contratados. La disposición antidiscriminatoria de la INA prohíbe que los empleadores sometan a los empleados a requisitos documentales diferentes o innecesarios con base en la ciudadanía, estatus migratorio o nacionalidad de origen del empleado.
Conforme al acuerdo, la Universidad pagará una multa a los Estados Unidos, capacitará al personal de recursos humanos del RMP sobre los requisitos de la disposición antidiscriminatoria de la INA y se someterá a los requisitos de Departamento en cuanto a supervisión y declaración.
«Los empleadores deben cumplir con las leyes antidiscriminatorias, tanto a la hora de contratar a sus empleados como a lo largo de su empleo», declaró el Fiscal General Auxiliar en funciones John Gore, de la División de Derechos Civiles. «Trabajaremos con la Universidad para procurar que su proceso de verificación de la elegibilidad para trabajar evite imponer cargas innecesarias sobre inmigrantes autorizados para trabajar por motivos de su estatus de ciudadanía».
Dentro de la División de Derechos Civiles, la Sección para los Derechos de los Inmigrantes y Empleados (IER, por sus siglas en inglés), es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a otros requisitos documentales por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen, o a la discriminación por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Attorney General Sessions Recognizes Law Enforcement Service and Sacrifice During National Police WeekRead the Press Release
Attorney General Sessions recognized the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, and commented on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.
“One officer death is too many,” Attorney General Sessions said. “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks.”
According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.
Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.
For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report, released today at www.fbi.gov.
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.
The names of all 93 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018. So that people across the country can experience this unique and powerful ceremony, the vigil will be livestreamed beginning at 8:00 PM (EDT) on May 13th. To register for this free online event, visit www.LawMemorial.org/webcast.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.
For more information about other National Police Week events, please visit www.policeweek.org.
Five Real Estate Investors Sentenced for Rigging Bids at Northern California Public Foreclosure AuctionsRead the Press Release
Five real estate investors were sentenced yesterday for their role in a conspiracy to rig bids, in violation of the antitrust laws, at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Joseph Giraudo, Kevin Cullinane, Raymond Grinsell, Daniel Rosenbledt, and Mohammed Rezaian were charged with and convicted of bid rigging at real estate foreclosure auctions in San Mateo County, California. Giraudo, Grinsell, Rosenbledt, and Rezaian were also convicted of bid rigging in San Francisco County.
Giraudo was sentenced to serve 15 months in prison followed by three years of supervised release, and he was ordered to pay a criminal fine of $2 million. Cullinane was sentenced to serve eight months in prison followed by three years of supervised release, and he was ordered to pay a criminal fine of $500,000. Grinsell was sentenced to three years of probation on the condition that he reside at a halfway house or residential re-entry center for 10 months. Grinsell was also ordered to pay a criminal fine of $1,433,045 and $156,146.79 in restitution. Rosenbledt was sentenced to serve six months in prison followed by three years of supervised release, and he was ordered to pay a criminal fine of $1,236,355 and $127,808 in restitution. Rezaian was sentenced to four years of probation on the condition that he reside at a halfway house or residential re-entry center for five months. Rezaian was also ordered to pay a criminal fine of $1,236,355 and $110,155.70 in restitution. The issue of restitution as it relates to Giraudo and Cullinane will be decided at a later date.
“As the sentences imposed yesterday show, bid rigging does not pay,” said Assistant Attorney General Makan Delrahim for the Justice Department’s Antitrust Division. “In addition to facing prison time, defendants can expect to pay substantial criminal fines and restitution for their ill-gotten gains.”
Between 2008 and January 2011, the defendants and other bidders at the auctions conspired not to bid against one another for selected properties, instead designating a winning bidder for the property at the auction and negotiated payoffs among themselves in return for not competing with one another.
When properties are sold at public auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds paid to the homeowner.
The sentence is a result of the Division’s investigation into bid rigging at public real estate foreclosure auctions in California’s San Francisco, San Mateo, Alameda, and Contra Costa counties.
These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should call the FBI tip line at 415-553-7400 or visit https://www.justice.gov/atr/report-violations.
Executive Office for Immigration Review Releases Court Statistics, Announces Transparency InitiativeRead the Press Release
The Executive Office for Immigration Review (EOIR) today released immigration court statistics through the first two quarters of Fiscal Year 2018 (FY18). Today’s release of certain immigration court statistics is the first step in an effort to increase transparency into the immigration court system by releasing immigration court data on a recurring basis.
“Releasing immigration court data to the American public introduces accountability to a system that has been neglected for years,” said EOIR Director James McHenry. “We are proud to announce today’s initial release of data and the commitment to a recurring release of EOIR’s full database, as we continue to make common-sense reforms that creates an immigration court system that serves the national interest.”
Highlights from today’s released data include the following:
- EOIR is beginning to reverse a downward trajectory of completions despite historic levels of new cases, less cases closed due to administrative closure, and an increase in recalendared cases. Last year, EOIR completed more cases than any year since FY12, and is on pace to complete approximately 184,000 cases by the end of FY18.
- The projected decrease of Inactive Pending Cases, which are not currently on the active docket following an immigration judge’s order of administrative closure. Inactive Pending Cases grew by nearly 75,000 cases from the end of FY15 to the end of FY17, but are expected to decline by 2 percent by the end of FY18. This would mark the first decrease in Inactive Pending Cases in at least ten fiscal years.
- The number of removal orders in absentia for cases in which an asylum application has been filed is projected to increase by approximately 40 percent by the end of FY18. The overall number of in absentia removal orders is projected to increase by 10% by the end of FY18 and by nearly 40 percent over FY16.
- Median Completion Time for Detained Cases is expected to decrease 7.5 percent, which would mark the second year of decline in a row following nine years of increases.
- Defensive asylum applications, including cases where an alien passed a credible fear screening, increased by almost 100,000 between FY12 and FY17; however, the number of defensive asylum applications granted increased by only about 4,000 over the same time period. The nationwide grant rate for all asylum applications is approximately 22 percent.
- UAC cases have increased by almost 1,300 percent since FY12, though EOIR is adjudicating Pending UAC Cases at a faster rate than previous years. Pending UAC Cases are projected to increase by approximately 14 percent. At the end of FY14, EOIR had 177 percent more pending cases than the prior fiscal year. In the next two fiscal years combined (i.e., FY15 and FY16), EOIR added 32,852 Pending UAC Cases, which totals nearly 43 percent of the current Pending UAC Case total. Almost two-thirds of UAC cases have been pending for at least one year, and 11 percent have been pending for over three years.
EOIR will release this and other data on a recurring basis, and the data will contain appropriate redactions for privacy concerns. The full upload of the data is expected within the next two weeks. EOIR staff frequently enter and update information into the case database, so the statistics provided are subject to change.
Immigration court statistics through Q2 FY18 can be found here.
North Carolina Return Preparer Sentenced to Prison for Filing False Tax Refund ClaimsRead the Press Release
A Wilson, North Carolina tax return preparer was sentenced today to 24 months in prison for filing a false claim for refund with the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert J. Higdon, Jr. for the Eastern District of North Carolina.
According to documents and information provided to the court, in early 2015 Tawanda Denise Pitt, managed Integritax, a tax preparation business in Wilson, North Carolina. Pitt falsified taxpayer client returns by claiming phony dependents and education credits and reporting fake businesses in order to seek refunds to which her clients were not entitled. Pitt also admitted that she trained other preparers to file fraudulent returns. She caused a tax loss between $550,000 and $1.5 million; the total tax loss resulting from false education credits alone exceeded $780,000.
In addition to the term of imprisonment, U.S. District Court Judge Malcolm J. Howard ordered Pitt to serve three years of supervised release and to pay $203,106 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Higdon thanked agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Adam F. Hulbig and Trial Attorney Terri-Lei O’Malley of the Tax Division, who are prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Justice Department Seeks to Revoke Citizenship of Convicted Felons Who Conspired to Defraud U.S. Export-Import Bank of More Than $24 MillionRead the Press Release
The Justice Department today filed denaturalization lawsuits against two individuals convicted of conspiring to defraud the United States Export-Import Bank (“Ex-Im Bank”) of more than $24 million, conduct they allegedly concealed during their naturalization proceedings. The civil complaints were filed in federal court in the Southern District of Florida.
“Criminals that seek citizenship in the United States and knowingly hide their criminal history have no right to keep their citizenship,” said Acting Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Today’s complaints prove that the Department of Justice will continue to uphold the law and protect our immigration system against those who seek to cheat the United States out of our greatest immigration benefit.”
Guillermo Oscar Mondino, 55, a native of Argentina, and Norma Borgono, aka Norma Isabel Borgono Bedoya, 63, a native of Peru, were convicted in 2010 and 2011, respectively, for conspiracy to defraud the United States and to commit mail fraud, in violation of 18 U.S.C. § 371. Mondino was also convicted of money laundering, in violation of 18 U.S.C. § 1957. As admitted in their criminal proceedings, Mondino owned an exporting company headquartered in Miami, Florida, which was in the business of purchasing U.S. goods on behalf of clients in the Caribbean, Central America, South America, and other foreign countries, and shipping those goods overseas. Mondino conspired with Borgono and others to obtain from the Ex-Im Bank more than $24 million in fraudulent loan transactions by falsifying records. Mondino and Borgono knew and intended that all or some of the goods identified on the applications they falsified would not be purchased and/or would not be shipped. They misappropriated $14.1 million in loan proceeds that were guaranteed by the Ex-Im Bank, including by distributing portions of the loans to foreign co-conspirators in cash. Mondino and Borgono admitted in their criminal proceedings that more than $12.9 million of the amounts Ex-Im Bank paid on claims for defaulted loans remained unrecovered.
After their fraudulent conspiracy was discovered, Mondino and Borgono were criminally charged in the U.S. District Court for the District of Columbia. Although Mondino and Borgono’s criminal conspiracy and crimes began while they were permanent residents of the United States, their criminal proceedings did not occur until after they had both naturalized. The civil denaturalization complaints allege that Mondino and Borgono concealed and affirmatively misrepresented their criminal conduct throughout their naturalization proceedings, and that their applications would have been denied had immigration authorities known about the defendants’ fraud.
The cases were 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 cases are being prosecuted by Trial Attorney Michael Celone of OIL-DCS, with support from Senior Attorney Gina Garrett-Jackson of ICE’s Miami Office of the Chief Counsel and Special Agent David Jansen of ICE-HSI Fort Lauderdale.
The claims made in these complaints are allegations only, and there have been no determinations of liability.
Justice Department Reaches Settlement with Minnesota Bank to Resolve Allegations of Lending DiscriminationRead the Press Release
The Justice Department today settled its suit against KleinBank, resolving allegations that the bank engaged in lending discrimination by “redlining” predominantly minority neighborhoods in and around the Twin Cities of Minneapolis-St. Paul, Minnesota. “Redlining” is a term describing the illegal practice in which lenders intentionally avoid providing services to individuals living in predominantly minority neighborhoods because of the race or national origin of the residents of those neighborhoods.
As part of the settlement, the parties have agreed to jointly seek dismissal of the lawsuit, which the Department filed in the U.S. District Court for the District of Minnesota in 2017. The Department’s complaint alleged that KleinBank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race and national origin in their mortgage lending services. The lawsuit alleged that, from 2010 to at least 2015, KleinBank engaged in unlawful redlining in the Twin Cities area by intentionally avoiding providing lending services to residents of predominantly minority neighborhoods because of the race or national origin of the people living in those neighborhoods.
KleinBank is the largest family-owned bank in Minnesota with 19 branch offices in the Minneapolis-St. Paul area and assets of more than $1.9 billion. Under the settlement, KleinBank will take a number of steps to remedy the harm alleged in the complaint and to ensure that its mortgage lending services are made available on a non-discriminatory basis. The bank will expand its banking services in predominantly minority neighborhoods in the Minneapolis area in a variety of ways. For example, it will invest $300,000 in a loan subsidy fund to increase the amount of credit that KleinBank extends to residents of predominantly minority neighborhoods, and another $300,000 in advertising, outreach, financial education, and credit repair in order to improve the bank’s visibility in, and successful expansion into, its new service area. The bank will employ a community development officer to oversee the development of the bank’s lending in predominantly minority neighborhoods, and will conduct fair lending training, including training on redlining, for its employees and officers.
“Federal law prohibits lenders from discriminating against mortgage applicants and other potential customers based on race or national origin,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to use its enforcement authority to combat this illegal discrimination.”
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. The Attorney General’s annual reports to Congress on ECOA enforcement highlight the Department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/.
A copy of the complaint and the settlement agreement, as well as additional information about fair lending enforcement by the Justice Department, can be found on the Justice Department’s website at www.justice.gov/fairhousing.
Former Mississippi Detention Officers Plead Guilty to Juvenile Assault and Cover-UpRead the Press Release
The Department of Justice announced that Edward Gibson, 28, an officer at a Mississippi juvenile detention facility, pleaded guilty yesterday in federal court to beating a juvenile in his custody. His supervisor, Dianne Williams, 60, pleaded guilty on April 17 to helping cover up the assault, a plea that had not been previously announced. Gibson’s indictment was unsealed in federal court on March 7 and a separate indictment unsealed on the same date charged Williams with writing a false report to cover up the assault.
Gibson was working as an officer at the Leflore County Juvenile Detention Center on June 16, 2016, when he assaulted a teenage victim who was in handcuffs and leg shackles. Gibson threw an electric fan at the victim, hitting him in the upper chest. Gibson then punched the victim multiple times before being pulled off of the victim by two other officers. The other officers had to step in twice more to prevent Gibson from further assaulting the victim.
According to admissions made by Gibson during the plea hearing, the victim was never physically aggressive toward Gibson, and Gibson assaulted him only because the victim made statements that angered him. Gibson weighed approximately 315 pounds; the victim weighed approximately 130 pounds.
Gibson faces a maximum sentence of ten years in prison. A sentencing date has not yet been scheduled.
Williams admitted that she was aware of the assault, failed to inform any responsible authority, and wrote a false report to cover it up. She pleaded guilty to misprision of a felony, which carries a maximum sentence of three years in prison. Her sentencing is set for Aug. 23.
“Detention officers have an important duty to protect juveniles from bodily harm or abuse while in custody,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “This Justice Department will not tolerate illegal acts of violence or attempts to obstruct justice by corrections officers, and will continue to protect the civil rights of all individuals.”
“Our Constitution and laws mandate that all prisoners and detainees be treated fairly and humanely and never face the excessive and unwarranted use of force employed in this case,” said U.S. Attorney William C. Lamar for the Northern District of Mississippi. “I know that our brothers and sisters in law enforcement feel the same and are ashamed by the actions of the abhorrent few.”
After the assault of the juvenile was discovered, the Detention Center fired Gibson and Williams.
This case was investigated by the Jackson Division of the Federal Bureau of Investigation, with the cooperation of the Leflore County Detention Center and the Leflore County Sheriff’s Department. This case was prosecuted by Assistant U.S. Attorney Robert Mims of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
El Departamento de Justicia Llega a un Acuerdo con un Banco de Minnesota para Resolver Alegatos de Discriminación en PréstamosRead the Press Release
WASHINGTON – El Departamento de Justicia llegó hoy a un acuerdo en su pleito contra KleinBank, para resolver alegatos de que el banco discriminó en los préstamos al tomar parte en “redlining”, predominantemente en los vecindarios habitados por minorías en las Ciudades Gemelas de Minneapolis-St. Paul, Minnesota, y en sus alrededores. “Redlining” es un término que describe la práctica ilegal llevada a cabo por prestamistas quienes deliberadamente evitan proporcionar servicios a individuos que viven en vecindarios habitados por minorías debido a la raza o el origen nacional de quienes residen en ellos.
Como parte del acuerdo, las partes han acordado solicitar conjuntamente la desestimación del pleito que el Departamento presentó en el Tribunal de Distrito de los EE. UU. para el Distrito de Minnesota en 2017. La demanda del Departamento alegaba que KleinBank violó la Ley de Vivienda Justa y la Ley de Igualdad de Oportunidades de Crédito, las que prohíben a las instituciones financieras discriminar con base en la raza y el origen nacional al otorgar servicios de créditos hipotecarios. La demanda alegaba que, desde 2010 hasta 2015, como mínimo, KleinBank mantuvo una práctica discriminatoria en el otorgamiento de préstamos en la zona de las Ciudades Gemelas al deliberadamente evitar proporcionar estos servicios a los residentes de vecindarios habitados por minorías debido a la raza o a el origen nacional de quienes vivían en ellos.
KleinBank es el banco familiar más grande de Minnesota, ya que cuenta con 19 sucursales en la zona de Minneapolis-St. Paul y con activos de más de $1.9 mil millones. Según el acuerdo, KleinBank tomará una serie de medidas para remediar el daño que se alega en la demanda y para asegurar que sus préstamos hipotecarios se otorguen sin incurrir en prácticas discriminatorias. El banco ampliará sus servicios bancarios en los vecindarios habitados predominantemente por minorías en la zona de Minneapolis de diferentes maneras. Por ejemplo, invertirá $300,000 en un fondo de subsidios para préstamos con el objeto de aumentar el monto de los créditos que KleinBank brinda a los residentes de los vecindarios habitados predominantemente por minorías, y otros $300,000 en publicidad, promoción comunitaria, educación financiera y reparación crediticia para mejorar la visibilidad del banco en su nueva zona de servicio y lograr que la ampliación sea exitosa. El banco empleará a un oficial quien se encargará del desarrollo comunitario y supervisará el desarrollo del servicio de préstamos en los vecindarios habitados predominantemente por minorías, y proveerá capacitación sobre servicios de préstamos, incluyendo capacitación en redlining, para sus empleados y funcionarios.
“La legislación federal prohíbe a los prestamistas discriminar contra los solicitantes de créditos hipotecarios y otros clientes potenciales basándose en la raza u el origen nacional”, afirmó el Fiscal General Auxiliar en funciones General John Gore de la División de Derechos Civiles. “El Departamento de Justicia continuará usando su autoridad para hacer cumplir la ley en la lucha contra esta discriminación ilegal”.
La coacción asociada a las leyes de otorgamiento justo de préstamos por parte del Departamento de Justicia es llevada a cabo por la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. En los informes anuales que el Fiscal General presenta ante el Congreso sobre el cumplimiento de la Ley de Igualdad de Oportunidades de Crédito se destacan los logros del Departamento en lo referente al otorgamiento justo de préstamos. Dichos informes se pueden encontrar en www.justice.gov/crt/publications/.
Se encuentra disponible una copia de la demanda y del acuerdo conciliatorio, así como información adicional acerca de las medidas tomadas por el Departamento de Justicia para hacer cumplir las prácticas justas en el otorgamiento de créditos, en el sitio web del Departamento de Justicia en www.justice.gov/fairhousing.
New Bedford Fishing Companies, Manager, and Vessel Captain to Pay over $400,000 in Civil Penalties and Make Fleet-Wide Fixes to Settle U.S. Oil-Pollution ClaimsRead the Press Release
Challenge Fisheries LLC, Quinn Fisheries Inc., Charles Quinn II, and Charles Quinn III have agreed to pay a total of $414,000 in civil penalties and to perform fleet-wide improvements and other compliance assurance measures to resolve federal Clean Water Act claims stemming from oily bilge discharges from the commercial fishing vessel Challenge, and a related fuel oil discharge in August 2017 in New Bedford Harbor, Massachusetts, the Department of Justice and the Coast Guard announced today.
In its complaint filed today, along with the lodging of a consent decree in the U.S. District Court for the District of Massachusetts, the United States alleges that the companies and individuals are liable for violations of the Clean Water Act related to the Challenge’s operations in New Bedford Harbor and in coastal waters off of southeastern New England. The complaint addresses discharges of oily bilge waste from the vessel while in port and at sea harvesting scallops, and the release of approximately 100 barrels (4,200 gallons) of fuel oil in connection with the illegal overboard pumping of oily bilge water in August 2017. The complaint also includes a Clean Water Act claim for violations of the Coast Guard’s spill prevention and pollution control regulation related to the failure to provide sufficient capacity to retain all oily bilge water onboard the vessel. The complaint alleges that the defendants discharged engine room bilge, which contains a mixture of fuel, lubricating oils, water, and other wastes, into the ocean and New Bedford Harbor rather than retain the waste onboard. The complaint further alleges these illegal discharges were the result of willful misconduct and were done to extend the duration of the fishing voyages. The United States seeks civil penalties and injunctive relief to deter future violations by the defendants and others in the industry.
In addition to payment of the civil penalties, the consent decree requires corrective measures across the defendants’ fleet of five New Bedford-based fishing vessels. The defendants will be required, among other things, to repair the vessels to reduce the generation of oily bilge water, operate within the vessels’ capacity to retain oily bilge for the full length of planned voyages, provide crew and management training on the proper handling of oily wastes, document all oil and oily waste transfers on and off of the vessels, including documenting proper disposal of engine room bilge water at a shore reception facility, and submit compliance reports to the government.
“Today’s action sends a clear message to the commercial fishing fleet that Clean Water Act compliance must be a non-negotiable part of operations,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “We appreciate our partners at the U.S. Coast Guard for their diligent investigation and referral of these violations.”
“Discharges of fuel and oily bilge wastes into our nation’s waters have long been prohibited and will not be condoned,” said Captain Richard J. Schultz, Commander of the Coast Guard’s Sector Southeastern New England. “These defendants will pay significant penalties and conduct fleet-wide corrective measures for their discharges of oil into New Bedford Harbor and the ocean.”
“This enforcement action will help protect people and the environment in and around New Bedford Harbor from the effects of oil pollution, and other fishing vessel owners and operators should take note,” said Andrew E. Lelling, U.S. Attorney for the District of Massachusetts.
Section 311(b) of the Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. Under the Act, the Coast Guard also has promulgated spill prevention and pollution control regulations for vessels and other facilities. Overboard discharges of oily mixtures, whether by directly pumping out oily bilge water that has not been properly treated, or by attempting to pump only the portion of oily bilge water beneath a floating oil layer in the bilge (so-called “decanting”), has long been unlawful under federal law.
The penalty paid for these discharges and the related pollution prevention violations will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.
The proposed consent decree, lodged in the District of Massachusetts, is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
Justice Department Reaches Agreement with Coconino County, Arizona, to Ensure Accessible VotingRead the Press Release
The Justice Department today reached a settlement under the Americans with Disabilities Act (ADA) with Coconino County, Arizona, to make the County’s polling places accessible to individuals with mobility and vision impairments.
The Department’s survey identified architectural barriers at County polling places, including inaccessible parking, ramps that were too steep, and doors that were too narrow. Under the ADA, counties that conduct local, state, or federal elections may not select polling places that are inaccessible during elections to individuals with disabilities. Coconino County is the Country’s second largest county, covering more than 18,000 square miles, and is also home to the Grand Canyon. The County includes parts of the Navajo, Hualapai, Hopi, Havasupai, and Kaibab Indian reservations, and more than one dozen County polling places are located on Indian reservations.
Under the terms of the agreement, Coconino County will start remediating polling places in time for its next election and will ensure that all of its polling places are accessible during elections to people with disabilities by no later than the November 2020 election. To make polling places accessible, the County will employ temporary measures such as portable ramps, signage, and propped open doors, and permanent changes such as paved parking. In addition, the County will train its poll workers on ADA requirements and on how to use temporary measures to ensure each polling place is accessible during elections. Furthermore, the County will survey polling locations for accessibility and maintain the accessibility of each polling place. When selecting future polling places, the agreement requires the County to select locations that will be accessible during elections. The Department will monitor the County’s compliance with the agreement and provide the County with technical assistance as appropriate.
“Through this settlement, Coconino County will ensure that its polling places are accessible to voters with disabilities, including those living in Indian Country, so that they have an equal opportunity to participate in elections,” said Acting Assistant Attorney General John Gore for the Civil Rights Division. “We applaud the County’s commitment to guaranteeing equal access to the polls.”
This settlement is part of the Department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at polling places. Through this Initiative, the Department has surveyed more than 1,500 polling places and increased polling place accessibility in more than 35 jurisdictions, including Chicago; Richland County, South Carolina; and Dauphin County, Pennsylvania.
For more information about the ADA and today’s agreement, please visit http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Former Atlanta Police Sergeant Sentenced to Prison for Using Excessive Force and Obstructing InvestigationRead the Press Release
Federal District Court Judge Steve C. Jones today sentenced Trevor King, 50, a former sergeant with the Atlanta Police Department to five years in prison for using excessive force when he arrested a Walmart shopper who the officer wrongfully suspected of shoplifting a tomato and for writing a false report about the incident in an effort to cover up his crime. King was convicted on Dec. 8, 2017, following a jury trial. Acting Assistant Attorney General John Gore, U.S. Attorney Byung J. “BJay” Pak, and David J. LeValley, Special Agent in Charge of FBI Atlanta made the announcement.
“The defendant abused his authority as a police sergeant when he used a baton to brutally assault an innocent man and wrote a false report to cover up his crime,” said Acting Assistant Attorney General John Gore for the Civil Rights Division. “This sentence reflects the Department’s commitment to prosecuting official misconduct cases and sends a strong message that any abuse of power will not be tolerated.”
“King was punished today for willfully violating the Constitution by misusing his power to violently assault and injure an innocent man,” said U. S. Attorney Byung J. “BJay” Pak. “To make matters worse, he wrote a false incident report in an attempt to make the victim sound like the aggressor. King’s egregious misconduct is an affront to law enforcement officers who serve honorably and uphold their oath of office with integrity.”
“It is our duty in the FBI to uphold our Constitution and laws, which prohibit law enforcement officers from willfully using excessive force against non-resistant subjects,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Sgt. King should have respected his authority, like the vast majority of his fellow law enforcement officers who serve and protect.”
According to evidence presented during King’s trial, on the evening of Oct. 13, 2014, the victim, Tyrone Carnegay, was grocery shopping at a downtown Atlanta Walmart store. After purchasing groceries, Carnegay returned to the produce aisle to weigh a tomato for which he believed he had been overcharged. Former Sergeant King saw Carnegay on the store’s security monitor weighing the tomato, and then walking out of the store after placing the tomato back into a bag. Suspecting that Carnegay was stealing the tomato, King withdrew his asp baton and stopped Carnegay at the store’s exit door. Within seconds of the stop, King began to strike Carnegay on his legs with the metal baton. After several blows, Carnegay fell to the floor. As he lay on the floor, King delivered a final baton strike, causing a compound fracture to Carnegay’s leg. After the assault, King found a receipt in Carnegay’s pocket for the groceries he had purchased, including the tomato.
King charged Carnegay with misdemeanor offenses for allegedly assaulting and obstructing a police officer, and authored a false police report justifying the beating. In that report, King claimed that Carnegay had attempted to push past King and had reached for King’s gun belt before King delivered any baton strikes.
Following surgery for his broken leg, Carnegay was transported from the hospital to Fulton County Jail, where he was held for several days before being released. The Fulton County District Attorney’s Office later dismissed the charges against him.
When King is released from prison, he will be under federal supervision for three years.
This case was investigated by the Atlanta Division of the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Brent Alan Gray and Trial Attorney Sanjay Patel of the Civil Rights Division.
DEA Brings in Record Number of Unused Pills During 15th Annual National Prescription Drug Take Back DayRead the Press Release
Americans nationwide did their part to drop off a record number of unused, unwanted or expired prescription medications during the DEA’s 15th National Prescription Drug Take Back Day, at close to 6,000 sites across the country. Together with a record-setting amount of local, state and federal partners, DEA collected and destroyed close to one million pounds—nearly 475 tons—of potentially dangerous expired, unused, and unwanted prescription drugs, making it the most successful event in DEA history.
This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,964,714 pounds, or 4,982 tons.
“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions. “An unprecedented crisis like this one demands an unprecedented response--and that's why President Trump has made this issue a priority for this administration. DEA's National Drug Take Back Days are important opportunities for people to turn in unwanted and potentially addictive drugs with no questions asked. These Take Back Days continue to break records, with the latest taking nearly 1 million pounds of prescription drugs off of our streets. And so I want to thank DEA and especially every American who participated in this event. I have no doubt it will help keep drugs out of the wrong hands and stop the spread of addiction."
“National Prescription Drug Take Back Day is a day for every American, in every community across the country, to come together and do his or her part to fight the opioid crisis – simply by disposing of unwanted prescription medications from their medicine cabinets,” said DEA Acting Administrator Robert W. Patterson. “This event – our 15th – brings us together with local, state and federal partners to fight the abuse of prescription drugs that is fueling the nation’s opioid epidemic.”
Now in its 9th year, National Prescription Drug Take Back Day events continue to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.
DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
Complete results for DEA’s fall Take Back Day are available at www.deatakeback.com. DEA’s next Prescription Drug Take Back Day is October 27, 2018.Owner of Colorado Martial Arts Academy Charged with Tax CrimesRead the Press Release
A federal grand jury sitting in Denver, Colorado has returned an indictment, which was unsealed yesterday, charging an Arvada, Colorado resident with failure to pay over payroll taxes to the Internal Revenue Service (IRS) and filing false corporate tax returns, announced Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, Marlene Seo owned and operated National Martial Arts Academy. From 2011 through 2013, Seo allegedly directed deposits of income from her martial arts school into bank accounts that she did not disclose to her bookkeeper and accountants, which resulted in her underreporting the business’s gross receipts on corporate tax returns for tax years 2011, 2012, and 2013.
The indictment further alleges that from 2012 through June 2014 Seo failed to pay the IRS payroll taxes that she withheld from employees’ paychecks, despite her obligation to do so.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Anahi Cortada and Lisa L. Bellamy, who are prosecuting the case.
New York Resident Pleads Guilty to Conspiracy to Defraud the United StatesRead the Press Release
A Brooklyn, New York, resident pleaded guilty today to conspiracy to defraud the government and theft of public funds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Akim Martin, also known as Akim Davis, 41, conspired with others to file fraudulent tax returns for companies and individual taxpayers. As part of the scheme, from March 2009 through March 2013, Martin and his coconspirators filed false tax returns in the names of businesses they purportedly owned and operated, claiming phony deductions for wages paid to employees that did not exist. Martin and his conspirators, in turn, then filed fraudulent tax returns in the names of the employees claiming bogus tax refunds.
Martin and his conspirators obtained the personal identifying information (PII) to use on the employees’ false tax returns by stealing it and by recruiting individuals to provide their information in exchange for a cut of the proceeds. Martin cashed and deposited fraudulently obtained refund checks into bank accounts that he controlled and spent the money on his personal expenses. Martin’s conduct resulted in a loss exceeding $550,000.
Sentencing is scheduled for August 24, 2018, before U.S. District Court Judge Carol Bagley Amon. Martin faces a statutory maximum sentence of 15 years in prison. 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 Jason M. Scheff and Ann M. Cherry, who are prosecuting these cases.
DEA Suspends the Registration of Morris & Dickson Company from Distributing Controlled SubstancesRead the Press Release
The Drug Enforcement Administration today announced the issuance of an Immediate Suspension Order served on Morris & Dickson Company, a wholesale pharmaceutical distributor, located in Shreveport, Louisiana.
Morris & Dickson Company has been the subject of a DEA investigation that alleges that this distribution center failed to properly identify large suspicious orders for controlled substances sold to independent pharmacies with questionable need for the drugs. The investigation, which focused primarily on purchases of Oxycodone and Hydrocodone, revealed that in some cases, pharmacies were allowed to purchase as much as six times the quantity of narcotics the pharmacy would normally order. In spite of regulations which require distributors to identify such orders, DEA alleges that Morris & Dickson Company failed to identify these large suspicious orders resulting in millions of dosage units of Oxycodone and Hydrocodone being distributed in violation of the law.
"Opioid distributors have a legal obligation not to facilitate the illicit diversion of drugs," said Attorney General Jeff Sessions. "That obligation has never been more important than it is right now as we face the deadliest drug crisis in American history. According to the allegations, many large suspicious orders for opioids were made, filled, and unreported by Morris and Dickson. We can only imagine how many pills were diverted, abused, and how many addictions began as a result. Today's suspension will help us achieve the President's goals of reducing opioid prescriptions in the United States and stopping the spread of addiction. I want to thank the DEA for their vigilance, for all of their hard work. The Justice Department will continue to use suspensions, deregistrations, and every other tool we have to stop the drug epidemic."
“Distributors have an obligation to ensure that all pharmaceutical controlled substances their customers order are for legitimate use, and it is their duty to identify, recognize and report suspicious orders to DEA,” said DEA Acting Administrator Robert W. Patterson. “This is another reminder that DEA will hold accountable those companies who choose to operate outside the law.”
In October 2017, DEA became aware of the high-volume sales of Oxycodone and Hydrocodone from Morris & Dickson Company to five of the top ten purchasing pharmacies within the state of Louisiana. DEA records indicated that Morris & Dickson Company had not filed any suspicious order reports on any of the pharmacies in question in Louisiana. A review of the purchases made by these high-volume independent pharmacies showed that these pharmacies were purchasing quantities which were not indicative of the pharmaceutical market. Not only were numerous “independent” retail pharmacies purchasing more Oxycodone and Hydrocodone than the largest chain pharmacies operating within the state, they were purchasing more narcotics than several of the largest chain pharmacies combined within the same zip code. In some instances, DEA noted these “independent” pharmacies were purchasing more than ten times the amount of narcotics the average Louisiana pharmacy purchased per month.
DEA’s actions today suspend the DEA Certificate of Registration issued to Morris & Dickson Company as a drug distributor pursuant to Title 21, United States Code, Sections 823 and 824. The DEA’s investigation of Morris & Dickson Company determined that the continued registration of this company constitutes a substantial likelihood of imminent danger to public health and safety. This action only applies to the distribution of controlled substances and will not affect non-controlled pharmaceutical drugs distributed by the company.
Morris & Dickson Company received written notice of the factual and legal basis for this action. In addition, they will be given the opportunity for an administrative hearing within the next 60 days. After the hearing, the DEA Acting Administrator will make a final decision on whether Morris & Dickson Company’s registration should be permanently revoked. This decision will be published in the Federal Register.
Today, more than four million Americans are addicted to prescription painkillers, including a quarter million adolescents. Sadly, drug overdoses are now the leading cause of injury death in the United States, more than deaths from motor vehicle crashes or deaths from firearms. Parents and children are encouraged to educate themselves about the dangers of drugs by visiting DEA’s interactive websites at www.JustThinkTwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.Maine Men Sentenced for Illegally Trafficking American EelsRead the Press Release
Today, William Sheldon was sentenced in federal district court in Portland, Maine, to six months in prison followed by three years supervised release for trafficking juvenile American eels, also called “elvers” or “glass eels,” in violation of the Lacey Act, announced Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division.
Sheldon was also ordered to pay a fine of $10,000, forfeit $33,200 in lieu of a truck he used during the crime, and may not possess a license to purchase or export elvers as a special condition of his supervised release. Also sentenced today for elver trafficking offenses was Timothy Lewis, who received a sentence of six months in prison followed by three years supervised release, with the special condition that he too may not possess a license to purchase or export elvers. Lewis was also ordered to pay a $2500 fine. Thomas Reno was also sentenced today to one year probation.
In the factual statement accompanying his guilty plea in October 2017, Sheldon, a licensed Maine elver dealer, admitted to trafficking nearly $550,000 worth of illegal elvers, and to taking specific steps to evade law enforcement detection. Lewis admitted to trafficking nearly $500,000 worth of illegal elvers, and Reno admitted to trafficking over $100,000 worth of illegal elvers.
“Today’s sentences establish that the United States will not tolerate interstate and international transactions involving illegally taken wildlife,” said Acting Assistant Attorney General Wood. “Despite their best efforts to evade law enforcement, these defendants were ultimately brought to justice, and we are very proud to have worked with our partners at the federal, state and local level to achieve this result.”
“With today’s sentencings, the success of Operation Broken Glass continues,” said Acting Assistant Director Edward Grace for the U.S. Fish and Wildlife Service, Office of Law Enforcement. “By working with our partners, we are actively working to dismantle an international wildlife trafficking scheme that not only harms American eels, but U.S. business owners and others who rely on healthy ecosystems for both ecological and economical purposes. Together, we will continue to protect native wildlife and our national resources for the continuing benefit of the American people."
These sentences were the result of “Operation Broken Glass,” a multi-jurisdiction United States Fish and Wildlife Service (USFWS) investigation into the illegal trafficking of American eels. To date, the investigation has resulted in guilty pleas for twenty-one individuals whose combined conduct resulted in the illegal trafficking of more than $5 million worth of elvers.
Eels are highly valued in east Asia for human consumption. Historically, Japanese and European eels were harvested to meet this demand; however, overfishing has led to a decline in the population of these eels. As a result, harvesters have turned to the American eel to fill the void resulting from the decreased number of Japanese and European eels.
American eels spawn in the Sargasso Sea, an area of the North Atlantic Ocean bounded on all sides by ocean currents. They then travel as larvae from the Sargasso to the coastal waters of the eastern United States, where they enter a juvenile or elver stage, swim upriver, and grow to adulthood in fresh water. Elvers are exported for aquaculture in east Asia, where they are raised to adult size and sold for food. Harvesters and exporters of American eels in the United States can sell elvers to east Asia for more than $2000 per pound.
Because of the threat of overfishing, elver harvesting is prohibited in the United States in all but two states: Maine and South Carolina. Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities. Operation Broken Glass targeted illegal elver poaching in states without open fisheries, and the subsequent illegal transport and export of those elvers.
Operation Broken Glass was conducted by the USFWS and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, Massachusetts Division of Natural Resources, North Myrtle Beach, South Carolina Police Department, and the Atlantic States Marine Fisheries Commission.
The government is represented by Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller.
Five Pennsylvania Physicians Charged with Unlawfully Distributing Buprenorphine and Defrauding Medicare and MedicaidRead the Press Release
Five physicians of Redirections Treatment Advocates, LLC, an opioid addiction treatment practice with offices in Pennsylvania and West Virginia, have been indicted on charges of unlawfully dispensing controlled substances and health care fraud, Attorney General Jeff Sessions, United States Attorney Scott W. Brady of the Western District of Pennsylvania and United States Attorney William J. Powell of the Northern District of West Virginia announced today. These indictments represent the latest in a series of charges filed since Attorney General Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that commit opioid-related health care fraud.
The defendants named in the indictments are:- Dr. Krishan Kumar Aggarwal, 73, of Moon Township, Pennsylvania, a contractor at RTA in Weirton, West Virginia;
- Dr. Madhu Aggarwal, 68, of Moon Township, Pennsylvania, a contractor at RTA in Bridgeville, Pennsylvania;
- Dr. Parth Bharill, 69, of Pittsburgh, Pennsylvania, a contractor at RTA in Morgantown, West Virginia;
- Dr. Cherian John, 65, of Coraopolis, Pennsylvania, a contractor at RTA in Weirton, West Virginia; and
- Dr. Michael Bummer, 38, of Sewickley, Pennsylvania, a contractor at RTA in Washington, Pennsylvania.
According to the indictments, Redirections Treatment Advocates, LLC, operates Suboxone clinics in several locations in western Pennsylvania and northern West Virginia. The indictments allege that the defendants, working as contractors at various locations, created and distributed unlawful prescriptions for buprenorphine, known as Subutex and Suboxone, a drug that should be used to treat individuals with addiction. The defendants are also charged with conspiracy to unlawfully distribute buprenorphine. Finally, the defendants are charged with health care fraud for allegedly causing fraudulent claims to be submitted to Medicare or Medicaid for payments to cover the costs of the unlawfully prescribed buprenorphine.
“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions. “It's incredible but true that some of our trusted medical professionals have chosen to violate their oaths and exploit this crisis for profit. Last summer, I sent a dozen of our top federal prosecutors to focus solely on the problem of opioid-related health care fraud in places where the epidemic was at its worst-including Western Pennsylvania. These cases cut off the supply of drugs and stop fraudsters from exploiting vulnerable people. Our prosecutors began issuing indictments back in October, and today we bring even more charges against those who allegedly defrauded the taxpayer while diverting potentially addictive drugs. I want to thank our dedicated AUSAs Robert Cessar and Sarah Wagner, FBI, DEA, our U.S. Attorneys’ offices, FDA, the HHS and Veterans Affairs Inspectors General, IRS, our Postal Inspectors, and all of our state and local partners for their hard work on these cases."
“Expanding the legitimate use of medication to treat addiction is a critical part of this Administration’s multi-faceted approach to combat the opioid epidemic ravaging our communities,” stated U.S. Attorney Brady. “Yet another vital component is the prosecution of unscrupulous practitioners who abuse their privilege to practice medicine and dispense prescriptions unlawfully. These indictments demonstrate that we remain vigilant in our pursuit of physicians who ignore their oath to do no harm.”
“We remain unwavering in our efforts to combat those who violate drug laws and thereby contribute to the crisis of addiction. I have made clear that a medical degree provides you no protection from prosecution. We will persevere,” added U.S. Attorney Powell.
For each of the defendants, the law provide a maximum sentence of 10 years in prison and a fine of $250,000 for each of the counts charging unlawfully dispensing Schedule III controlled substances; a maximum sentence of 10 years imprisonment and a fine of $1 million for each of the counts charging conspiracy to unlawfully dispense a Schedule III controlled substance; and a maximum sentence of 10 years imprisonment and a fine of $250,000 for each of the counts charging health care fraud. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Robert S. Cessar of the Western District of Pennsylvania and Assistant United States Attorney Sarah E. Wagner of the Northern District of West Virginia are prosecuting these cases on behalf of the United States.
The investigation leading to these indictments was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services - Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service - Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Unites States Postal Inspection Service, U.S. Attorney’s Office - Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs - Office of Inspector General, Food and Drug Administration - Office of Criminal Investigations and the Pennsylvania Bureau of Licensing, and the U.S. Department of Justice - Criminal Division’s Fraud Section’s Health Care Fraud Unit assisted in the investigation.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.Court Shuts Down Charleston, South Carolina Tax Return PreparerRead the Press Release
A federal court in Charleston, South Carolina permanently enjoined Jacqueline Lowndes from preparing federal tax returns for others. The court also ordered Lowndes to mail a copy of the injunction order to all customers for whom she prepared a return for tax years 2012 through 2016. Lowndes agreed to the civil injunction order entered against her.
According to the complaint, Lowndes prepared federal income tax returns for customers that reported false, improper or inflated deductions which understated the customers’ income tax liabilities and increased their refunds. Lowndes also allegedly falsely claimed the Earned Income Tax Credit on behalf of customers who did not qualify for the credit by exaggerating the customers’ losses and expenses, falsely claiming dependents for customers, and falsely changing the filing status of customers. Returns prepared by Lowndes underreported tax liabilities or overstated tax refunds by over $600,000, according to the complaint.
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 their 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.
Resort Operator Pleads Guilty to Filing a False Tax ReturnRead the Press Release
A Scottsdale, Arizona man, who formerly resided in Pagosa Springs, Colorado, pleaded guilty today in the U.S. District Court for the District of Colorado to filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, William Whittington, 68, filed a false 2010 individual income tax return, on which he underreported his income by more than $390,000. From 2010 to 2012, Whittington directed that the Springs Resort & Spa, in Pagosa Springs, Colorado, a business run by him and members of his family, pay many of his personal expenses, which for these years resulted him underreporting his income by more than $900,000 and not paying more than $360,000 in taxes.
Additionally, from 2003 to 2010, Whittington used two offshore bank accounts in Liechtenstein to generate approximately $9.7 million in investment income. Whittington did not pay taxes on this income, resulting in a tax loss of at least $1.5 million. In total, Whittington did not pay at least $1.8 million in taxes owed to the Internal Revenue Service.
Sentencing is scheduled for October 9, 2018. In addition to a prison sentence, Whittington 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 Lori A. Hendrickson, Kathleen M. Barry and Sarah A. Kiewlicz, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Recent False Claims Act Settlement Will Yield $11 Million for the Purchase of Bullet-Proof Vests for Local Law EnforcementRead the Press Release
Today, Attorney General Jeff Sessions announced that the Department of Justice will return over $11 million from a settlement with Toyobo Co. Ltd. and Toyobo America, Inc. (collectively Toyobo), companies that produced the fiber used in bulletproof vests that the Department alleged were defective, to help purchase approximately 18,700 additional bullet-resistant vests for law enforcement officers through the Bulletproof Vest Partnership (BVP) Program.
“Bulletproof vests are sometimes all that stands between a police officer and death,” Attorney General Sessions said. “Having just come from this year’s Blue Mass, I am more determined than ever to get effective vests to officers who need them. Companies who have sold us faulty or defective vests should compensate us so that we can get our officers the vests they need. That’s why this Department of Justice will give these settlement funds to those who deserve them: the men and women in blue.”
Since 2007, the body armor industry has paid the United States more than $132 million to resolve alleged violations of the False Claims Act by knowingly manufacturing and selling defective bulletproof vests containing Zylon. The most recent and largest recovery was from Toyobo, the company which manufactured the Zylon fiber and promoted its use as a ballistic material, which paid $66 million to resolve its potential liability. The United States is proceeding against the two remaining participants in the fraudulent Zylon scheme: Richard C. Davis, the former President of Second Chance Body Armor, Inc., and Honeywell International, Inc. Mr. Davis’ trial is scheduled for June 2018.
The BVP Program, administered by the Office of Justice Programs' (OJP) Bureau of Justice Assistance (BJA), protects the lives of law enforcement officers by helping state, local, and tribal governments equip their law enforcement officers with bullet-resistant vests. Since 1999, over 13,100 jurisdictions have participated in the BVP Program, with more than $447.7 million in federal funds used to support the purchase of more than 1,294,000 vests.
BVP funding covers 50 percent of total vest costs for rural law enforcement agencies with community populations of fewer than 100,000 residents. For larger jurisdictions, the program provides up to 50 percent of funding, depending on the annual appropriation from Congress and the amount of funds requested by the rural jurisdictions that apply.
“Marketing faulty protective gear to law enforcement officers who put themselves in the line of fire is an unconscionable act and a betrayal of trust” said BJA Director Jon Adler. “This settlement and the Attorney General’s laudable decision to allocate these funds to the BVP program represent the Justice Department’s strong commitment to officer safety. Our unwavering priority is to protect our officers as they keep our communities safe.”
BVP funds may be used to purchase only vests that meet the minimum performance standards established by OJP's National Institute of Justice (NIJ) Ballistic Resistance of Body Armor Standard. The NIJ Standard, updated in July 2008, establishes minimum performance requirements and test methods for the ballistic resistance of personal body armor designed to protect the torso against gunfire.
According to the International Association of Chiefs of Police/DuPont Kevlar Survivors' Club, since 1987, there have been over 3,000 recorded cases where individuals working in law enforcement have survived both ballistic and non-ballistic incidents because they were wearing body armor.
In 2010, the Department of Justice returned to the BVP Program $11 million from earlier settlements with other participants involved in the manufacture and sale of Zylon vests. Today’s payment brings the total returned to the BVP Program to more than $22 million, and ensures that the BVP Program has been fully compensated for its losses in supporting law enforcement agencies’ purchases of allegedly defective Zylon vests.
For additional information about the BVP Program and the NIJ Ballistic Resistance of Body Armor Standard visit: https://ojp.gov/bvpbasi/.
Maryland Man and Woman Indicted for Stolen Identity Refund FraudRead the Press Release
A federal grand jury has returned a superseding indictment, which was unsealed today, charging a Maryland man and woman with multiple federal crimes stemming from their involvement in stolen identity refund fraud (SIRF), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur.
Devell Lincoln and Stephanie Twyman were each charged with conspiracy to commit theft of public money, theft of public money, and aggravated identity theft.
According to the superseding indictment, Lincoln and Twyman and others conspired to file false federal income tax returns with the Internal Revenue Service (IRS) for the purpose of obtaining tax refunds to which they were not entitled. The superseding indictment alleges that the false tax returns were filed using names and Social Security numbers of unwitting taxpayers, but listed addresses that were controlled by a co-conspirator to which the IRS would mail the fraudulent refund checks.
The superseding indictment further charges that Twyman arranged for co-conspirators, including Lincoln, to cash the fraudulently obtained tax refund checks at a check cashing business in Clinton, Maryland. In total, the conspirators are alleged to have obtained from the IRS over $500,000 in fraudulent refunds.
If convicted, the defendants face a statutory maximum sentence of five years in prison on the conspiracy count, 10 years in prison on each theft of public money count, plus an additional mandatory two years in prison on the aggravated identity theft counts. The defendants also face a period of supervised release, restitution and monetary penalties. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked special agents of IRS Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration, who investigated the case and Assistant U.S. Attorney Michael Packard and Tax Division Trial Attorney William Guappone, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Announces Additional Prosecutors and Immigration Judges for Southwest Border CrisisRead the Press Release
Attorney General Jeff Sessions today announced the dedication of additional prosecutors to handle the prosecutions of improper entry, illegal reentry, and alien smuggling cases, and additional immigration judges to handle the adjudication of immigration court cases that result from the crisis at the Southwest border.
Thirty-five new Assistant United States Attorney (AUSA) positions have been allocated to U.S. Attorney’s Offices along the Southwest border. The breakdown of those positions is as follows:
- Southern District of Texas: Eight (8);
- Southern District of California: Eight (8);
- Western District of Texas: Seven (7);
- District of Arizona: Six (6); and,
- District of New Mexico: Six (6).
“The American people made very clear their desire to secure our borders and prioritize the public safety and national security of our homeland,” said Attorney General Jeff Sessions. “Promoting and enforcing the rule of law is essential to our republic. By deploying these additional resources to the Southwest border, the Justice Department and the Trump Administration take yet another step in protecting our nation, its borders, and its citizens. It must be clear that there is no right to demand entry without justification.”
Due to a recent increase in the number of apprehensions at the Southwest border, the new AUSA positions announced today will assist in the prosecutions of illegal reentry (8 U.S.C. § 1326), alien smuggling (8 U.S.C. § 1324), and improper entry (8 U.S.C. § 1325) pursuant to the Justice Department’s “Zero-Tolerance Policy” announced by Attorney General Sessions on April 6, 2018 and its prior April 11, 2017 directive to AUSAs to prioritize charging immigration offenses.
In addition to the new AUSA positions, Attorney General Sessions and Executive Office for Immigration Review (EOIR) Director James McHenry announced the utilization of 18 current supervisory immigration judges to adjudicate cases in immigration courts near the southwest border. The supervisory immigration judges will hear cases in-person and use video teleconferencing (VTC) to handle cases at immigration courts and represent a roughly 50 percent increase in the current number of immigration judges:
- Eloy (AZ) Immigration Court;
- Florence (AZ) Immigration Court;
- Adelanto (CA) Immigration Court;
- Imperial (CA) Immigration Court;
- Otay Mesa (CA) Immigration Court;
- Otero (NM) Immigration Court;
- El Paso (TX) Service Processing Center;
- Harlingen (TX) Immigration Court;
- Pearsall (TX) Immigration Court; and
- Port Isabel (TX) Immigration Court.
“The Justice Department, under Attorney General Jeff Sessions, has made significant reforms and progress in tackling the overwhelming backlog in the immigration court system,” said EOIR Director James McHenry. “We must not let attempts to undermine our lawful immigration system deter that progress, and the men and women at EOIR are proud to play a small role in the Attorney General’s response to the crisis at our Southwest border.”
Between March and September 2017, EOIR mobilized over one hundred immigration judges to Department of Homeland Security detention facilities across the country, including along the Southwest border. In October, EOIR projected that the mobilized immigration judges—hearing both in-person and VTC cases—completed approximately 2,700 more cases than expected if the immigration judges had not been detailed.
Maryland Chiropractor Sentenced to Prison for Filing False Tax Returns and Obstructing IRSRead the Press Release
A former Salisbury, Maryland chiropractor was sentenced today to 15 months in prison for filing fraudulent income tax returns and attempting to obstruct the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur for the District of Maryland.
According to the evidence presented in court, Dr. Warren Gregory Belcher, 60, operated a chiropractic business for nearly 20 years. During that time, he received income for chiropractic services from insurance companies, patients and other third parties, including another chiropractor in Baltimore. From 2009 through 2015, Belcher filed individual income tax returns that fraudulently claimed that he had earned no business income, when, in fact, the evidence at trial established that he received total payments of more than $350,000 during that time period. Belcher filed his false 2015 tax return after being notified that he was the target of a federal grand jury investigation. He filed an additional false tax return for 2016 while under indictment and awaiting trial.
The evidence introduced at trial included dozens of letters that Belcher sent to insurance companies and other third parties in which he threatened that the companies could be subject to civil and criminal penalties for reporting to the Internal Revenue Service (IRS) payments they made to him for his services. Belcher also made threatening statements to an accountant to prevent the accountant from reporting his income to the government. Belcher himself also submitted fraudulent forms to the IRS in an effort to falsely represent that companies that had reported his income to the IRS had not actually paid him that income.
For the years 2009 and 2011, the IRS mailed Belcher notices informing him that his returns underreported his income. The IRS also assessed additional taxes and penalties against Belcher for his fraudulent returns, including a $5,000 penalty for filing a frivolous tax return. Belcher responded to these IRS notices by sending letters to the IRS asserting that the IRS was violating the law by assessing and collecting his taxes.
In addition to the term of imprisonment, U.S. District Judge Richard D. Bennett ordered Belcher to pay restitution to the IRS in the amount of $63,763.58and serve one year of supervised release.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Sean R. Delaney and Tax Division Trial Attorney Melissa S. Siskind, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Justice Department Announces First Criminal Illegal Entry Prosecutions of Suspected Caravan MembersRead the Press Release
The Department of Justice today filed criminal charges against eleven different suspected members of the so-called “caravan” in the United States District Court for the Southern District of California, announced Attorney General Jeff Sessions and U.S. Attorney for the Southern District of California Adam Braverman. All defendants are alleged to have illegally entered the country in violation of 8 U.S.C § 1325, and one defendant is also alleged to have been previously deported and was charged with 8 U.S.C § 1326 (illegal reentry).
“When respect for the rule of law diminishes, so too does our ability to protect our great nation, its borders, and its citizens,” said Attorney General Jeff Sessions. “The United States will not stand by as our immigration laws are ignored and our nation’s safety is jeopardized. U.S. Attorney Adam Braverman and his team should be commended for quickly filing illegal entry charges for individuals apprehended along the southwestern border. We will continue to work with our partners in each U.S. Attorney’s Offices to aggressively pursue prosecutions of criminal illegal entry.”
“The American Dream has beckoned immigrants from across the globe because of the promise that prosperity and success are within reach for all,” said United States Attorney for the Southern District of California Adam L. Braverman. “Those immigrants have contributed their voices and perspectives to make up our uniquely American experience. But the foundation for the American Dream, and what allows our democracy to flourish, is commitment to the rule of law. These eleven defendants face charges now because they believed themselves to be above the law. Those seeking entry into the United States must pledge fidelity to the law, not break them, or else face criminal prosecution.”
According to the complaints, defendants were apprehended by Border Patrol in the following areas known as: Goat Canyon, 35 Draw, Eucci Grove, and W-8. Goat Canyon, 35 Draw, and Eucci Grove are approximately four miles west of the San Ysidro, California Port of Entry, and W-8 is approximately two miles west of San Ysidro.
The complaints allege that the defendants knowingly and willingly entered into the United States at a time and place other than as designated by Immigration Officers, and eluded examination and inspection by Immigration Officers.
A complaint contains allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cigarette Companies to Post Court-Ordered Statements in Tobacco Racketeering Suit on Company Websites and Cigarette PackagesRead the Press Release
Today, the U.S. District Court for the District of Columbia entered a consent order requiring the country’s major cigarette companies to begin posting “corrective statements” on their websites starting on Monday, June 18. The order, part of a long-running lawsuit against the cigarette companies, also requires them to attach the same statements to cigarette packages for two weeks at a time, for a total of twelve weeks over two years. The order will also apply to any social media campaigns by the companies to promote cigarettes.
The statements address the effects of cigarette smoking and the fact that cigarettes are deliberately designed to create and sustain addiction. As a result of a previous court order, the statements are currently running on television five times per week, and previously ran as full-page ads in about fifty newspapers across the country. The statements specifically state, among other things:
- That smoking cigarettes causes numerous diseases and on average 1,200 American deaths every day;
- That the nicotine in cigarettes is highly addictive and that cigarettes have been designed to create and sustain addiction;
- That so-called light, low-tar, and natural cigarettes are just as harmful as regular cigarettes; and
- That secondhand smoke causes disease and death in people who do not smoke.
The corrective statements were ordered as part of a 2006 permanent injunction against cigarette companies, including Altria, its Philip Morris USA subsidiary, and R.J. Reynolds Tobacco, to “prevent and restrain” further deception of the American people regarding tobacco use. The order also applies to ITG Brands, which purchased Winston, Kool, and other cigarettes brands from companies in the case.
Numerous Justice Department attorneys have played a role in this case over the years. In the most recent phase of the litigation, the United States was represented by Trial Attorneys Daniel K. Crane-Hirsch and John (Josh) Burke of the Justice Department’s Consumer Protection Branch, and Linda McMahon of the Commercial Litigation Branch.
Six public health organizations – the American Cancer Society, American Heart Association, American Lung Association, Americans for Nonsmokers’ Rights, National African American Tobacco Prevention Network and the Tobacco-Free Kids Action Fund – joined the Department of Justice case as intervenors in 2005.
Two Texas Men Sentenced to 20 and 15 Years in Prison for Hate Crime Assault Based on Victim’s Sexual OrientationRead the Press Release
Anthony Shelton, 20, and Cameron Ajiduah, 19, were sentenced today to 20 and 15 years in prison, respectively, for assaulting a man because of the victim’s sexual orientation, in violation of 18 U.S.C. § 249, announced the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Eastern District of Texas, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives’ Dallas Division.
According to the plea agreements, Shelton and Ajiduah both admitted that they and another defendant, Nigel Garrett, used Grindr, a social media dating platform for gay men, to arrange to meet the victim at his home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted him, and made derogatory statements about the victim’s sexual orientation. The defendants brandished a firearm during the home invasion, and they stole the victim’s property, including his motor vehicle.
A federal grand jury previously had returned an eighteen-count superseding indictment that included charges for hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes. The indictment also charged Shelton, Ajiduah, along with other defendants, Nigel Garrett and Chancler Encalade, with conspiring to cause bodily injury because of their victims’ sexual orientation during home invasions in Plano, Frisco, and Aubrey, Texas, from Jan. 17 to Feb. 7, 2017. All four defendants subsequently pleaded guilty to hate crime charges from this indictment, and admitted that they targeted victims because of their sexual orientation. Earlier this year, Garrett was sentenced to 15 years in prison, and Encalade was recently sentenced to 10 years in prison.
“The Department of Justice will not tolerate any act of violence targeting individuals based on their sexual orientation, gender identity, race, color, religion, disability, or national origin,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department will continue to investigate and prosecute hate crimes cases.”
“This case highlights the danger of the internet and specifically, online apps,” said U.S. Attorney Joseph D. Brown for the Eastern District of Texas. “In this case, the defendants misused the internet for sinister purposes in order to target an innocent man based on his sexual orientation, causing him bodily harm and damage to his property.”
The investigation was conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Plano Police Department, and the Frisco Police Department. The case was prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
Puerto Rico Supreme Court Justice Addresses Latin American Judges at Department of Justice’s Judicial Studies InstituteRead the Press Release
Today, at the Supreme Court of Puerto Rico, Justice Edgardo Rivera García gave the keynote address to 29 judges from Costa Rica, the Dominican Republic, Guatemala, Haiti, Honduras, Mexico, Panama and Peru in San Juan, Puerto Rico as part of the Judicial Studies Institute (JSI) training program, a collaborative effort between the Department of Justice and Department of State to build the capacity of the judiciaries of the Western Hemisphere.
As a frequent contributor to the JSI program, Justice Rivera García stressed the importance of the judges’ contribution to rule of law in the hemisphere and lauded them for their role in the transformation of Latin American justice.
With the support of U.S. Supreme Court Justice Sonia Sotomayor, and in partnership with the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs, the Department of Justice’s Office of Prosecutorial Development Assistance and Training (OPDAT) launched JSI in 2012 as a response to the wave of justice sector reforms in Latin America that saw many countries transition to an adversarial system.
Through instruction conducted in Spanish, practical exercises, and observations of courtroom proceedings, the JSI program provides judges with an opportunity to enhance their understanding of the fundamental principles, benefits, and challenges of the adversarial system. This capacity building is critical to the region as the judge’s role in the adversarial system is different from that in the inquisitorial system. In the inquisitorial system, the judge is actively involved in investigating the facts of the case, whereas in the adversarial system, the role of the judge is primarily that of an impartial referee between the prosecution and the defense.
Throughout 2018, judges from 10 Latin American countries will participate in JSI courses covering topics such as the development of rules of evidence, proportionality in sentencing, and opinion writing. While each country’s transition to the adversarial system has been unique, the judges who have participated in the JSI program have displayed the same dedication to improving and strengthening the transparency and efficiency of their respective criminal justice systems.
“The Judicial Studies Institute’s work with Latin American judges as their justice systems transition to adversarial systems is pivotal to ensure the fair and effective administration of justice throughout the hemisphere, which in turn promotes security throughout the region,” said Faye S. Ehrenstamm, Director of OPDAT. “This would not be possible without both the deep commitment of the judiciaries from participating countries and the tremendous contributions by the U.S. federal and state judiciaries. OPDAT is proud to be associated with JSI and its many contributions to the region.”
Since 2012, JSI, with its partners at the University of Puerto Rico and Inter-American University law schools, has hosted over 700 Latin American judges from 12 countries. The program continues to expand with the introduction of a mentoring component for JSI alumni in 2017, and new course offerings on special topics including digital and electronic evidence, opinion writing, and asset forfeiture added to the curriculum each year.
Panasonic Avionics Corporation Agrees to Pay $137 Million to Resolve Foreign Corrupt Practices Act ChargesRead the Press Release
Panasonic Avionics Corporation (PAC), a subsidiary of multinational electronics company Panasonic Corporation (Panasonic), has agreed to pay a $137.4 million criminal penalty to resolve charges arising out of a scheme to retain consultants for improper purposes and conceal payments to third-party sales agents, in violation of the accounting provisions of the Foreign Corrupt Practices Act (FCPA).
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Acting Assistant Director Christopher Hacker of the FBI’s Criminal Investigative Division made the announcement.
“When Panasonic Avionics Corporation caused its publicly-traded parent company to falsify its books and records, it distorted the information available to legitimate investors,” said Acting Assistant Attorney General Cronan. “The Criminal Division will take all appropriate action to ensure that the investing public is able to trust the accuracy of the financial statements of companies that avail themselves of American securities exchanges.”
“Enforcement of the Foreign Corrupt Practices Act is critical in maintaining a fair and competitive international market to which all businesses are entitled,” said Acting Assistant Director Hacker. “Along with our federal partners and the Department of Justice, the FBI will continue to aggressively investigate violations of the Foreign Corrupt Practices Act.”
PAC, based in Lake Forest, California, designs and distributes in-flight entertainment systems and global communications services for airlines and airplane manufacturers. According to admissions and court documents, PAC knowingly and willfully caused Panasonic to falsify its books and records with respect to PAC’s retention of consultants for improper purposes. The consultants, which did little or no actual consulting work for PAC, were retained through a third-party service provider and were paid for out of a budget over which a senior PAC executive had complete control and discretion, without meaningful oversight by anyone at PAC or Panasonic. One such individual was offered the consulting position by PAC at the time that he was employed by a state-owned airline and involved in negotiating a lucrative contract amendment on behalf of the airline with PAC. According to court documents, that consultant was subsequently paid $875,000 by PAC over a six-year period and PAC earned over $92 million in profits from portions of the contract over which the consultant had some involvement or influence while employed with the airline. PAC admitted that it mischaracterized these payments as “consultant payments” on its general ledger, which it knew caused Panasonic to incorrectly designate those payments as “selling and general administrative expenses” on Panasonic’s books, records, and accounts.
PAC also admitted that employees in its Asia region concealed PAC’s use of certain sales agents, which did not pass the Company’s internal diligence requirements. According to admissions and court documents, PAC formally terminated its relationship with these sales agents, as required by its compliance policies, but PAC employees then secretly continued to use the agents by having them rehired as sub-agents of another company, which had passed PAC’s due diligence checks. Through this process, PAC employees hid more than $7 million in payments to at least 13 sub-agents.
By mischaracterizing the payments made to consultants and sales agents and providing false or incomplete representations and Sarbanes-Oxley subcertifications to Panasonic about PAC’s financials and financial controls, PAC caused Panasonic to falsify its books, records, and accounts in violation of the FCPA.
PAC entered into a deferred prosecution agreement (DPA) in connection with a criminal information, filed today in the U.S. District Court for the District of Columbia, charging the company with one count of knowingly and willfully causing the falsification of the books, records, and accounts of its parent company Panasonic. As part of the DPA, PAC will pay a total criminal penalty of $137,403,812. PAC also agreed to continue to cooperate with the department’s investigation, enhance its compliance program, implement rigorous internal controls and retain an independent corporate compliance monitor for at least two years.
In a related proceeding, the U.S. Securities and Exchange Commission (SEC) filed a cease and desist order against Panasonic, whereby the company agreed to pay approximately $143 million in disgorgement to the SEC, including prejudgment interest. Thus, the combined total amount of U.S. criminal and regulatory penalties to be paid by Panasonic and PAC is over $280 million.
The Criminal Division’s Fraud Section reached this resolution based on a number of factors, including the fact that PAC did not timely voluntarily self-disclose the conduct, but did cooperate with the department’s investigation after receiving a request for documents from the SEC. PAC received a 20 percent discount off the low end of the U.S. Sentencing Guidelines fine range because of its cooperation and remediation, which, although untimely in certain respects, did include causing several senior executives who were either involved in or aware of the misconduct to be separated from PAC or Panasonic. Because many of the company’s compliance enhancements were more recent, and therefore have not been tested, the DPA imposes an independent compliance monitor for a term of two years, followed by an additional year of self-reporting to the department.
The case is being investigated by the FBI’s International Corruption Squad in Los Angeles. Fraud Section Trial Attorneys Dennis R. Kihm and Jeremy R. Sanders prosecuted the case. The Fraud Section appreciates the significant cooperation and assistance provided by the SEC in this matter. The Criminal Division’s Office of International Affairs also provided assistance during the investigation.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Nevada Lawyer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
A Reno, Nevada attorney was sentenced today to 25 months in prison for filing false federal income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Dayle Elieson for the District of Nevada.
Delmar Hardy was convicted, following a jury trial in September 2017, of filing false individual income tax returns for the years 2008, 2009 and 2010.
According to documents and evidence presented to the court, Hardy falsified his 2008 through 2010 returns by not reporting more than $400,000 in cash income his law practice received. Hardy’s practice of not reporting cash dated back to at least 1999, which resulted in a total tax loss of more than $250,000.
In addition to the term of imprisonment, U.S. District Court Judge Miranda M. Du ordered Hardy to serve one year of supervised release and to pay a fine in the amount of $10,000.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney James E. Keller and Tax Division Trial Attorney Lee F. Langston, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Miami-Dade Juvenile Detention Officer Charged with Civil Rights Offenses for Role in Inmate’s Beating and DeathRead the Press Release
Acting Assistant Attorney General John Gore, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, today announced federal charges against juvenile detention officer Antwan Lenard Johnson arising from his role in the August 2015 beating and death of a 17-year-old juvenile inmate (E.R.) at the Miami-Dade Regional Juvenile Detention Center (JDC) in Miami, Florida.
“The Justice Department will continue to aggressively prosecute corrections officers who exploit their position of power and violate the civil rights of individuals in their custody,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.
“The United States Constitution protects every person in this country, including those who are detained in juvenile detention facilities,” said U.S. Attorney Benjamin G. Greenberg. “It is an honor and privilege to work with the many outstanding agents and officers who are part of our law enforcement community. These brave individuals put their lives on the line every day to protect us all and make our communities safer. But we are committed to bringing to justice the small minority of law enforcement officials when they abuse their authority and violate the civil rights of another.”
“Violations of civil rights by government officials cannot be tolerated as it undermines the public’s trust,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “The FBI is committed to working with our partners to safeguard the civil rights of all.”
Johnson, 35, of Miami-Dade County, was charged with conspiracy to violate E.R.’s civil rights under color of law, which resulted in E.R.’s death, in violation of Title 18, United States Code, Section 241; and deprivation of E.R.’s civil rights, under color of law, which resulted in bodily injury and E.R.’s death, in violation of Title 18, United States Code, Section 242. If convicted, Johnson faces a maximum statutory sentence of life in prison for each charge.
E.R. was a 17-year-old juvenile who had been arrested and was subsequently taken to the JDC on Aug. 28, 2015. He was being detained pending further order of the State Court and had not been convicted of the crime for which he had been arrested.
The indictment alleges that Johnson operated a commonly utilized bounty system in order to help ensure obedience and officer respect at the JDC. Johnson encouraged and induced juvenile detainees, in exchange for rewards and privileges, to forcibly assault E.R. In exchange for attacking E.R., Johnson rewarded the juveniles with extra recreational time and snacks. As a result of being held at the JDC, witnessing events at the facility, and in some cases being actual victims of the bounties, the juveniles were aware of the bounty culture. They knew that they would not be punished or disciplined by Johnson, but in fact rewarded, if they followed his directives.
The indictment alleges that, on Aug. 30, 2015, Johnson worked in Module 9 at the JDC, during the 3:00 p.m. to 11:00 p.m. shift. Based on E.R.’s statements and behavior during dinner at the JDC cafeteria, Johnson communicated to juveniles that he wanted them to forcibly assault E.R. Various juveniles agreed, which caused E.R. to fear for his immediate safety and stand away from the other juveniles prior to, and while returning, from the JDC cafeteria to Module 9.
According to the indictment, Johnson directed juveniles to delay the attack on E.R. until they all returned to Module 9. Upon returning to Module 9 with the juveniles, Johnson promptly walked out of view of E.R. and the other juveniles. At the same time, a juvenile punched E.R. in the face as he attempted to sit down in a chair. Numerous other juveniles immediately joined the attack and punched and kicked E.R., continuing their assault, even when E.R. fell to the ground.
The indictment further alleges that after E.R. was escorted out of Module 9 to the JDC medical department, Johnson promptly released the juveniles in Module 9 from their cells and allowed them to watch television as a reward and privilege. Johnson also bumped fists with the juvenile who initiated the attack on E.R. Johnson later caused certain Module 9 juveniles to receive snacks as a reward and privilege for participating in the attack on E.R.
According to the indictment, E.R. was later transported from the JDC to Holtz Children’s Hospital in Miami, Florida. On Aug. 31, 2015, E.R. was pronounced dead due to bodily injuries suffered during the attack.
An indictment merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI Miami Area Corruption Task Force. The case is being prosecuted by Assistant U.S. Attorney Sean T. McLaughlin and Trial Attorney Samantha Trepel of the Civil Rights Division.
Environment and Natural Resources Division Releases Accomplishments Report for FY2017Read the Press Release
Today, the Department of Justice’s Environment and Natural Resources Division (ENRD) released its Accomplishments Report for Fiscal Year (FY) 2017. The report, which is published annually by ENRD, highlights the division’s strong enforcement of our nation’s environmental laws, defense of government programs that strengthen the country’s energy independence and national security, and close collaboration with states and tribes.
“It has been a true honor and privilege to serve as the Acting Assistant Attorney General for the Environment and Natural Resources Division (ENRD) since January 2017, under the leadership of Attorney General Jeff Sessions and alongside the extraordinary public servants of the division,” said Acting Assistant Attorney General Jeffrey H. Wood. “ENRD is a powerful force for good in our country — both through our enforcement of the environmental laws to protect clean land, clean air, clean water, and wildlife, and our defense of the rule of law and good governance by the federal agencies that ENRD represents.”
This year, ENRD focused on several key objectives: vigorously enforcing the environmental laws of the United States; promoting energy independence and economic growth by reducing regulatory burdens and supporting infrastructure development; strengthening national security; promoting cooperative federalism by partnering with states and tribes; and responsibly protecting taxpayer dollars.
In 2017, ENRD obtained a number of court orders requiring responsible parties to clean up hazardous waste and to reimburse the government for cleanups conducted by federal agencies. The division also concluded landmark civil and criminal cases against Volkswagen AG, which used “defeat devices” to cheat our air emissions laws. The division also continued to work with federal and state partner agencies to investigate other possible bad actors in the auto industry and to bring similar violators to justice.
Among other successes this year, ENRD secured the largest-ever penalty for crimes involving deliberate vessel pollution — $40 million — against Princess Cruise Lines, a subsidiary of the world’s largest cruise company. In another settlement announced in early 2018 (FY2018), the division required Denver-based PDC Energy to spend approximately $19.7 million to reduce emissions of volatile organic compounds from 650 tank batteries and pay a $2.5 million civil penalty. The division also negotiated the cleanup of 94 abandoned uranium mines on Navajo Nation lands. In addition, the division criminally prosecuted more than 20 wildlife traffickers who harmed protected species.
The change in administration also brought changes in policy priorities for the agencies that the division represents. Through its representation of the United States in legal challenges to new policy initiatives at partner agencies such as the Environmental Protection Agency (EPA), the Department of Interior (DOI), the Department of Defense, and the Department of Homeland Security, the division has played a critical role in paving the way for investments in infrastructure and energy security projects that will strengthen the U.S. economy, as well as facilitating more robust border control and military operations to protect our national security. For example, ENRD defended the federal permits issued for several energy infrastructure projects, including the Dakota Access Pipeline (which is now operational), and has resolved a number of critical cases to acquire land for improved border protection and for expansion or development of military installations.
The Trump Administration is undertaking an ambitious agenda of regulatory reform, and ENRD supports this effort by advising partner agencies, including EPA and DOI, on high-priority rulemakings and ensuring the effective defense of regulatory actions in court. The division also is managing a number of cases challenging agency regulations promulgated under previous administrations that are under review pursuant to President Trump’s Executive Orders. Notable examples are challenges to the Clean Power Plan and the Clean Water Rule.
“Our aim at ENRD is to avoid unnecessary litigation, support the integrity of the administrative process, and conserve the resources of the courts, the agencies, and other litigants, while also defending the rightful prerogative of the Administration to review the costs and benefits of regulations and to chart a new direction where appropriate,” Acting Assistant Attorney General Wood added.
In FY2017, ENRD worked on 3,943 cases and matters, while maintaining a robust docket of nearly 7,000 cases and matters. In addition, ENRD obtained over $4.8 billion in civil and criminal fines, penalties, and costs recovered, and the estimated value of federal injunctive relief obtained — clean-up and pollution prevention actions funded by private parties — exceeded $18.7 billion. ENRD also saved the government an estimated $360 million in the successful defense of claims brought against the government. The division is also implementing recent policy directives by the Attorney General, including restrictions on third party payments in settlement agreements.
The report also recognizes the important contributions of ENRD’s front office leadership: Deputy Assistant Attorneys General Jean Williams, Bruce Gelber, Eric Grant, and Jonathan Brightbill, as well as Counsel and Chief of Staff Corinne Snow.
Two Guatemalan Nationals Sentenced in Connection with Labor Trafficking Scheme and Forced Labor of Other Guatemalan NationalsRead the Press Release
Lured Relatives to U.S. with Promises of a Better Life, But Instead Subjected them to Forced Labor, Increasing Debt, and Threats of Deportation
Two Guatemalan nationals were today sentenced in U.S. District Court in Tacoma, Washington, for their scheme to exploit other Guatemalan nationals for their own financial gain, announced Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Annette L. Hayes of the Western District of Washington. Antonio Francisco-Pablo, 60, residing in Forks, Washington, was sentenced to three years in prison for one count of forced labor. Antonia Marcos Diego, 42, also residing in Forks, Washington, was sentenced to one year of probation for one count of document servitude in furtherance of forced labor. At the sentencing hearing, U.S. District Judge Ronald B. Leighton described their crimes as a “despicable offense” and a “serious degree of exploitation.”
According to documents filed in court, defendant Antonia Marcos Diego and her husband, Antonio Francisco-Pablo, lured Diego’s sister to enter the United States from Guatemala, falsely promising that they would provide her with a home, a job earning a lot of money, and a good life. Contrary to these promises, however, the defendants saddled the victim with significant debt upon arrival in the United States, and informed her that she would work off the debt by picking salal, a plant commonly used by florists. The defendants retained all of the victim’s earnings and increased her debt by imposing additional charges on her for food, housing, transportation, and utilities. The defendants also kept the victim’s identification documents and threatened her with deportation if she ever tried to leave them. According to court documents, the defendants similarly lured another relative to the United States from Guatemala, and also imposed a significant debt upon him after his arrival.
“The defendants forced their own family members to work for no pay after luring them to the United States on false promises of a better life,” said Acting Assistant Attorney General John Gore. “The Department of Justice will continue to prosecute labor traffickers, who exploit vulnerable individuals for their own greed and erode the American ideals of freedom, opportunity, and the rule of law.”
“What these defendants did to their victims amounts to modern day slavery and will not be tolerated,” said U.S. Attorney Annette L. Hayes. “All of us in law enforcement are committed to addressing the needs of victims and holding perpetrators to account. I encourage anyone with information about this kind of forced labor victimization to go to law enforcement and be part of the solution.”
Both defendants will pay $18,950 in restitution to the victims. Francisco-Pablo was in the U.S. unlawfully, and it is virtually certain that he will be deported following his prison term. Antonia Marcos Diego will be on probation for one year.
The case was investigated by the Department of Homeland Security’s Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the Clallam County Sheriff’s Office, Port Angeles Police Department, and Washington State Patrol Crime Laboratory.
The case is being prosecuted by Assistant United States Attorney Bruce F. Miyake and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Michigan Nail Salon Supplier Pleads Guilty to Filing A False Tax ReturnRead the Press Release
A resident of Troy, Michigan, pleaded guilty today to filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Mythi Nguyen co-owned Y & B Nail Supply, a nail salon wholesale business located in Madison Heights, Michigan. From 2009 through 2011, Nguyen underreported more than $1.1 million in business gross receipts from her tax returns, which caused a total tax loss of $272,680.72.
U.S. District Judge Gershwin A. Drain scheduled sentencing for September 13, 2018. Nguyen faces a statutory maximum sentence of three years in prison. She 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 Thomas F. Koelbl, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Ft. Worth, Texas, Couple Charged with Forced Labor of Domestic ServantRead the Press Release
Defendants compelled the unpaid domestic labor and services of a young, West African girl in their home for over 16 years until neighbors helped her escape
Mohamed Toure, 57, and Denise Cros-Toure, 57, of Ft. Worth, Texas, appeared today in federal court in the Northern District of Texas on a criminal complaint charging them with forced labor, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, and Special Agent in Charge Michael V. Perkins of the U.S. Department of State, Diplomatic Security Service, Houston Field Office.
According to the affidavit filed with the complaint, the defendants and others arranged for the victim, who did not speak English, to travel alone from her village in the Republic of Guinea, in West Africa, to Southlake, Texas, in January 2000 to work for the defendants in their home. The victim’s Guinean passport indicated that she was five years old at the time. Throughout the years, until the victim escaped in August 2016, the defendants forced the victim to labor in their home for long hours without pay. The defendants required her to cook, clean, do the laundry, perform yardwork, and paint, as well as care for their five children. Although the victim was close in age to the children, the defendants denied her access to schooling and the other opportunities afforded to their children.
As part of their coercive scheme to compel the victim’s labor, the defendants took her documents and caused her to remain unlawfully in the United States after her visa expired. They further isolated her from her family and others and emotionally and physically abused her. Eventually, in August 2016, the victim escaped the defendants with the help of several former neighbors.
A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum penalty for the offense of forced labor is 20 years in federal prison.
The case is being investigated by Diplomatic Security Service, Houston Field Office. It is being prosecuted by Trial Attorneys Rebekah Bailey and William Nolan of the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit with assistance from Assistant U.S. Attorneys Alex Lewis and Chris Wolfe for the Northern District of Texas.