District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Statement by Attorney General Sessions on Today’s New Lawsuit Against the State of CaliforniaRead the Press Release
Attorney General Jeff Sessions issued the following statement on the Department of Justice’s new lawsuit against the State of California:
“I regret the need to file yet another lawsuit against the state of California today. The Department of Justice is fighting every day to take illegal guns and drugs off our streets, combat the opioid epidemic and secure our borders from drug traffickers and criminal aliens, and protect our national security from radical Islamic extremists and foreign threats to our cyber security. But once again, we see that too many of our resources are being diverted to deal with meritless and unnecessary lawsuits.
“We are forced to spend our resources to bring these lawsuits against states like California that believe they are above the law and are passing facially unconstitutional laws specifically intended to interfere with the federal government’s ability to carry out its legitimate law enforcement duties. And we are forced spend our resources to defend against lawsuits that are patently meritless like one now filed by California claiming that adding back a question on citizenship to the census is unconstitutional after decades of its inclusion. Both of these lawsuits are forcing us to spend precious tax payer dollars and Department resources to litigate issues that most Americans believe are common sense—the executive branch should be able to remove criminal aliens from a jail instead of your neighborhood, the federal government should have an accurate count of who can legally vote in our federal elections, a Department should be able to rescind an unlawful policy intended to usurp Congress’ role in passing immigration laws, or that the President should be able to know who is coming into our country from countries that are terrorist havens.
“The waste is compounded by ideological judging and forum shopping that drags these cases out for months and years. In the meantime, the federal government can be prevented from carrying out its lawful duties by a single district court judge regardless of how many of the other 600 plus district court judges may disagree. The increasing frequency of limitless injunctions is simply unsustainable, and the ever-more extreme nature of these injunctions is only making it more obvious just how unlawful they are. This is not a political or a partisan issue. It is a constitutional issue and a rule of law issue and, more frequently now, a question of how we are allocating our tax payer dollars—to protecting Americans from violent crime and a raging drug epidemic or defending frivolous lawsuits from partisan actors.
“Government-by-litigation isn’t what the American people voted for and attempting to thwart an administration’s elected agenda through endless, meritless lawsuits is a dangerous precedent.”Department of Justice Files Motion in Multi-District Opioid CaseRead the Press Release
Attorney General Jeff Sessions today announced that the Department of Justice has filed a motion to participate in settlement discussions and as a “friend of the court” in the ongoing Multi-District Litigation against opioid manufacturers and distributors.
“Following the leadership of President Trump, for the past year the Department of Justice has vigorously fought the prescription opioid crisis, deploying new tools and resources to stop the traffickers and corrupt medical professionals who are profiting off of addiction,” said Attorney General Sessions. “We are determined to continue making progress. Today, we are taking a new step to help those who have suffered the consequences of the opioid epidemic by offering our assistance as friend of the Court in ongoing litigation against opioid manufacturers and distributors. We have already filed a statement of interest in this case, arguing that the taxpayer has paid a heavy price because of dishonest opioid marketing practices, and deserves to be compensated. Now we are formally seeking to provide the federal government’s expertise and legal counsel to the court on a potential settlement. We are determined to see that justice is done in this case and that ultimately we end this nation’s unprecedented drug crisis.”
A “friend of the court” is not a direct party to the case, but provides information and expertise that may help achieve justice in the case.
The Department’s participation, if granted by the court, will ensure that the court will be better able to consider the national consequences of the case, and in particular any legal obligations of settling parties to reimburse the federal treasury.
In addition to this filing, the United States is pursuing its own actions against bad actors at every level of the opioid distribution system through the Prescription Interdiction and Litigation (PIL) Task Force, which Attorney General Sessions created in February.
The Attorney General has directed the PIL Task Force to examine existing state and local government lawsuits against opioid manufacturers to determine what assistance, if any, federal law can provide in those lawsuits.
Today’s filing will build on a number of new initiatives begun by Attorney General Sessions over the past year that will help us end the drug crisis, including the following:- In July, the Attorney General announced charges against more than 120 defendants, including doctors, for crimes related to prescribing or distributing opioids and other dangerous narcotics.
- One week later, the Attorney General announced the seizure of AlphaBay, the largest criminal marketplace on the Internet. This site hosted some 220,000 drug listings – including more than 100 vendors advertising fentanyl – and was responsible for countless synthetic opioid overdoses, including the tragic death of a 13-year old in Utah.
- In August, the Attorney General created the Opioid Fraud and Abuse Detection Unit, a new data analytics program to help find evidence of overprescribing and opioid-related health care fraud.
- The Attorney General then assigned 12 experienced Assistant United States Attorneys to opioid “hot-spots” to focus solely on investigating and prosecuting opioid-related health care fraud. By November they had begun issuing indictments.
- In October, the Department announced the first-ever indictments of Chinese nationals and their North American-based traffickers and distributers for separate conspiracies to distribute fentanyl and other opioids in the United States.
- Also in October, the DEA announced the establishment of six new enforcement teams focused on combatting the flow of heroin and illicit fentanyl into the U.S. These enforcement teams are based in communities facing some of the most significant challenges with heroin and fentanyl.
- In 2017, the DEA held two of its National Prescription Drug Takeback Days, when people can dispose of unnecessary and potentially dangerous drugs with no questions asked. In total, DEA took a record 956 tons of drugs out of American communities.
- In January 2018, the Department announced a new resource to target traffickers who sell drugs online called J-CODE: Joint Criminal Opioid Darknet Enforcement team. The J-CODE team will coordinate efforts across the FBI’s offices all around the world – bringing together DEA, our Safe Streets Task Forces, drug trafficking task forces, Health Care Fraud Special Agents, and other assets – effectively doubling the FBI’s investment into fighting against online drug trafficking.
- Also in January 2018, the DEA announced a 45-day surge of Special Agents, Diversion Investigators, and Intelligence Research Specialists to focus on pharmacies and prescribers who are dispensing unusual or disproportionate amounts of drugs.
- On February 7, 2018, the DEA placed all fentanyl analogues not already regulated by the Controlled Substances Act into Schedule I – the category for substances with no currently accepted medical use – for at least two years. This makes it harder for people to acquire illicit fentanyl and easier for law enforcement to investigate and prosecute drug traffickers.
Note: To view the Motion to Participate in Settlement Discussion and as Friend of the Court click here.
DEA Surge in Drug Diversion Investigations Leads to 28 Arrests and 147 Revoked RegistrationsRead the Press Release
For 45 days in February and March, the U.S. Drug Enforcement Administration surged its enforcement and administrative resources to identify and investigate prescribers and pharmacies that dispensed disproportionately large amounts of drugs. The ultimate goal of the surge was remediating or removing those whose actions perpetuate the controlled prescription drug crisis in America, particularly opioid drugs.
During that period, the DEA surged the efforts of special agents, diversion investigators, and intelligence research specialists to analyze 80 million transaction reports from DEA-registered manufacturers and distributors, as well as reports submitted on suspicious orders and drug thefts and information shared by federal partners, such as the Department of Health and Human Services. This resulted in the development of 366 leads to DEA field offices, 188 of which (51 percent) resulted in active investigations by DEA’s 22 field divisions.
“In the midst of the deadliest drug epidemic in American history, we need all hands on deck,” said Attorney General Jeff Sessions. “That’s why the Department of Justice has made enforcing our drug laws a priority. Over the last 45 days, the DEA has surged resources and personnel to prevent the diversion of opioids, arresting dozens of people and taking away drug dispensing authority from nearly 150 medical professionals. And our efforts are just getting started. I recently announced that DEA will surge task force officers and more analysts to places across America where the opioid crisis is at its worst. These new resources will help us catch and convict more of the drug traffickers and corrupt medical professionals who are fueling the opioid crisis.”
“DEA will use every criminal, civil, and regulatory tool possible to target, prosecute and shut down individuals and organizations responsible for the illegal distribution of addictive and potentially deadly pharmaceutical controlled substances,” said Acting DEA Administrator Robert W. Patterson. “We must stop the loss of our loved ones to these drugs.”
The culmination of those investigations was 28 arrests, 54 other enforcement actions including search warrants and administrative inspection warrants, and 283 administrative actions of other types. These additional actions included scheduled inspections, letters of admonition, memoranda of agreement/understanding, surrenders for cause of DEA registrations, orders to show cause, and immediate suspension orders (the immediate revocation of registrations).
DEA works with various federal and state partners on data sharing agreements to enhance its ability to identify individuals and companies who are contributing to the prescription opioid crisis, including a coalition of 41 state attorneys general and the Department of Justice’s Opioid Fraud and Detection Unit, an initiative of Attorney General Sessions. It is also dedicating additional resources to its domestic divisions to carry out investigations.California Man Pleads Guilty to Trafficking in Counterfeit Sports ApparelRead the Press Release
A Mountain House, California man pleaded guilty today in Sacramento for trafficking in counterfeit sports apparel.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office and Sheriff Scott Jones of the Sacramento County Sheriff’s Department made the announcement.
Seyyed Ali Noori, 50, pleaded guilty to two counts of trafficking in counterfeit goods before U.S. District Judge Garland E. Burrell Jr. of the Eastern District of California. Noori was indicted by a federal grand jury on Jan. 14, 2016, and will be sentenced on June 15.
According to admissions made in connection with his plea, Noori owned and operated Goldstar Wholesale LLC, a regional wholesale distributor based in Tracy, California, and also sold goods at the Galt Flea Market in Galt, California. In August, October, and November 2013, undercover officers with the Sacramento Intellectual Property Task Force purchased hundreds of dollars of counterfeit hats, shirts, and other accessories from Noori. These items bore counterfeit trademarks belonging to professional sports franchises in the National Football League, the National Basketball Association, Major League Baseball, and the National Hockey League, as well as apparel brands like Monster Energy, Nike, and New Era. Purchases were made from Noori at the Galt Flea Market and the Goldstar warehouse.
Noori admitted that on Nov. 12, 2013, he was served with a notice directing him to cease-and-desist selling goods bearing counterfeit NFL, MLB, NBA, NHL, and Monster Energy trademarks. Noori signed a declaration that he understood the cease-and-desist notice and would refrain from selling such products in the future.
Nonetheless, according to Noori’s admissions, he continued to sell the counterfeit goods. On Dec. 3, 2013, undercover Task Force officers visited Noori’s retail stand at the Galt Flea Market, where Noori indicated that he could no longer display the counterfeit items for sale. Instead, he directed the officers to his box truck for the counterfeit goods, which they purchased. On Dec. 19, 2013, a search warrant executed at the Goldstar warehouse recovered thousands of items openly displayed for sale, including pieces of headwear, shirts, and accessories, all bearing counterfeit sports trademarks.
This case was investigated by the Sacramento Intellectual Property Task Force, the FBI’s Sacramento Field Office and the Sacramento County Sheriff’s Office. Trial Attorneys Aaron R. Cooper and Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
Two Former Airline Industry Executives Convicted of Orchestrating Multimillion Dollar Scheme to Steal Passenger Money from EscrowRead the Press Release
A federal jury in the District of New Jersey found the former chief executive officer and the former vice president of a now-bankrupt public air charter operator guilty yesterday for their roles in a scheme to steal millions of dollars in passenger money for future travel from an escrow account, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Todd A. Damiani of the U.S. Department of Transportation Office of Inspector General’s New England Field Office.
Judy Tull, 73, and Kay Ellison, 58, both of Edenton, North Carolina, were each convicted of one count of conspiracy to commit wire fraud affecting financial institutions and to commit bank fraud, four substantive counts of wire fraud affecting financial institutions and three substantive counts of bank fraud following a seven-day trial. Tull is the former CEO of Myrtle Beach Direct Air and Tours (Direct Air), which was headquartered in Myrtle Beach, South Carolina, with operations in Daniels, West Virginia, and Ellison is its former vice president and managing partner. Sentencing has been scheduled for July 17, 2018 before U.S. District Judge Susan D. Wigenton of the District of New Jersey, who presided over the trial.
“Judy Tull and Kay Ellison stole passengers’ money to try and prop up their failing company,” said Acting Assistant Attorney General Cronan. “Their brazen scheme created a multimillion dollar shortfall that left passengers stranded at airports, and banks and credit card companies scrambling to pick up the pieces. “This important case is just the latest example of the pivotal role the Fraud Section plays in the Department of Justice’s ongoing efforts to combat white collar fraud.”
“This investigation demonstrates the Department of Transportation Office of Inspector General’s (DOT-OIG) commitment to protecting the traveling public from fraudulent schemes involving charter flight operations,” said DOT-OIG Regional Special Agent in Charge Damiani. “We will continue our vigorous efforts in preventing, detecting and prosecuting fraud that erodes the public’s confidence in the integrity of transportation-related goods and services.”
According to evidence presented at trial, from October 2007 through March 2012, Tull and Ellison engaged in a scheme to steal passengers’ money for future travel from an escrow account by artificially inflating the amount of money the defendants claimed they were entitled to receive, and by sending this falsified amount in a letter to the escrow bank telling the escrow bank to release the money. The evidence further established that to cover up their fraud, the defendants falsified profit and loss statements to make the company look like it was making money rather than losing money, and sent these falsified documents to credit card companies and banks to trick them into continuing to do business with the company.
Testimony at trial established that two financial institutions sustained losses of nearly $30 million for having to refund thousands of passengers their money that should have been held for them in escrow, but was actually stolen by the defendants as part of their fraud.
Robert Keilman, 73, of Marlboro, New Jersey, Direct Air’s former Chief Financial Officer, pleaded guilty to charges stemming from his role in this scheme and is awaiting sentencing.
This case was investigated by DOT-OIG. Trial Attorneys Michael T. O’Neill and Cory E. Jacobs of the Criminal Division’s Fraud Section are prosecuting the case. Former Fraud Section Trial Attorney L. Rush Atkinson also investigated the case.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Justice Department Reaches Agreement with the South Carolina Department of Corrections to Provide Effective Communication to Inmates with Hearing DisabilitiesRead the Press Release
The Justice Department today reached a settlement agreement with the South Carolina Department of Corrections (SCDC), to ensure that inmates with hearing disabilities are provided effective communication and the opportunity to participate equally in SCDC’s services, programs, and activities.
The settlement agreement resolves complaints under the Americans with Disabilities Act (ADA) in which inmates with hearing disabilities alleged that SCDC failed to provide them with sign language interpreters and other auxiliary aids and services, and excluded their participation in vocational and religious programs because they are deaf. SCDC cooperated with the Department throughout the investigation.
Among the terms of the agreement, inmates with hearing disabilities will not be excluded from participating in SCDC’s programs including vocational and religious services. The agreement also requires SCDC to provide services equal to those provided to inmates who are not deaf including auxiliary aides and services and qualified interpreters, in a timely manner, to ensure effective communication with the SCDC inmates with hearing disabilities. SCDC will also provide telecommunication services so that inmates with hearing disabilities may communicate with their families and attorneys the same as other inmates.
“SCDC cooperated fully with this investigation and has committed to ensuring effective communication and providing equal access to its programs and services for its inmates with hearing disabilities,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We congratulate SCDC for recognizing its obligations and moving promptly to take this step.”
“Access to services and programming is not only a right under the ADA for the inmates who are deaf and hard of hearing, in this instance, these services will enable the inmates to improve their job skills and better ready themselves for a law-abiding life,” said U.S. Attorney Beth Drake. “That’s good corrections policy that benefits the whole state.”
This agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments.
For more information about the ADA, today’s agreement, individuals may access the ADA Web page at http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Houston Physician and Pain Management Clinic Owner Convicted of Running “Pill Mill” That Provided Unlawful Prescriptions for Millions of Doses of Opioids and Other Controlled SubstancesRead the Press Release
A federal jury found a Houston physician and the owner of a pain management clinic guilty today for their roles in running a “pill mill” that provided tens of thousands of unlawful prescriptions for millions of doses of opioids and other controlled substances.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Will R. Glaspy of the Drug Enforcement Administration’s (DEA) Houston Division made the announcement.
After a nine-day trial, Gazelle Craig, D.O., 41, and Shane Faithful, 48, both of Houston, Texas, were convicted of one count of conspiracy to unlawfully distribute controlled substances and three counts of unlawfully distributing and dispensing controlled substances. A sentencing date has not yet been scheduled before U.S. District Judge David Hittner of the Southern District of Texas, who presided over the trial. Both defendants were remanded into the custody of the U.S. Marshal’s Service.
“Our great country is currently in the midst of the deadliest drug crisis in our history,” said Attorney General Sessions. “Sadly, even some trusted medical professionals like doctors, nurses and pharmacists have chosen to violate their oaths and exploit this crisis for cash. The consequences have been devastating. In this case, tens of thousands of pills flooded our streets because of the defendants’ actions. We will never know for certain the scale of the damage done. We do know that justice has been served, and so I want to thank everyone who helped secure this conviction, including the DEA and Department of Justice Trial Attorneys Scott Armstrong and Devon Helfmeyer. This conviction will not only help stop the diversion of prescription drugs, it will send a message to every would-be fraudster in America.”
According to evidence presented at trial, from March 2015 through July 2017, Craig, a licensed doctor, and Faithful, the clinic owner, ran Gulfton Community Health Center (Gulfton), which operated as an illegal pill mill. The evidence showed that Craig unlawfully wrote approximately 18,252 prescriptions for over 2.1 million dosage units of hydrocodone, a Schedule II controlled substance, and approximately 15,649 prescriptions for over 1.3 million dosage units of carisporodal, a Schedule IV controlled substance. The combination of hydrocodone and carisoprodol is a dangerous drug cocktail with no known medical benefit, the evidence showed.
The trial evidence showed that Craig issued unlawful prescriptions for controlled substances to as many as 60 patients a day. “Crew leaders” ferried numerous patients to Gulfton so that Craig could provide them with unlawful prescriptions for controlled substances. Faithful and Craig charged approximately $300 for each prescription and required payment in cash. The evidence also revealed that the defendants divided each day’s cash proceeds, often in excess of $15,000, from the sale of the unlawful prescriptions.
Faithful and Craig made great efforts to prevent law enforcement from investigating Gulfton, the evidence showed. For example, they banned the use of any electronic devices in the clinic and prevented anyone from bringing bags into Gulfton. Approximately four armed security guards also patrolled Gulfton daily to control the crowds of people, who ranged from addicts to “crew leaders.”
This case was investigated by the DEA. Trial Attorneys Scott Armstrong and Devon Helfmeyer of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Missouri Man Pleads Guilty to Hate Crimes for Making Threats Against Augusta MosqueRead the Press Release
On March 26, 2018, Preston Q. Howard, 49, of Wright City, Missouri, entered a guilty plea before Chief United States District Court Judge J. Randal Hall, to three charges of Obstruction of Persons in the Free Exercise of Religious Beliefs, in violation of 18 U.S.C. § 247(a)(2). He faces up to 20 years in prison without the possibility of parole for each offense, and is subject to a sentencing enhancement because he chose his victims based on their religion, classifying his actions as hate crimes.
According to information presented at the March 26 hearing, between June 22, 2017 and August 8, 2017, Howard made numerous telephone calls to the Islamic Society of Augusta, during which he threatened to “kill,” “bomb,” “shoot,” “behead,” “slaughter,” “execute,” “light on fire,” and “murder” members of the mosque, to “hunt down” and “zone in” on Muslims, and to “blow up the mosque.” At the hearing, Howard admitted committing these acts and obstructing or attempting to obstruct the mosque members’ free exercise of their religious beliefs. Howard remains in federal custody pending his sentencing hearing, which has not yet been scheduled.
“All people, regardless of where they worship or which religion they belong to, are entitled to live free from the threat of violence and discrimination,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Howard’s threatening and hateful calls were criminal and unlawful. The Department of Justice will continue to hold anyone who commits hate crimes accountable under the law.”
“Those who perpetrate hate crimes by making abhorrent and venomous threats against members of our community in violation of federal law will be held accountable! We continue to work with our law enforcement partners to identify and bring to justice those who terrorize our citizens,” said U.S. Attorney Bobby L. Christine for the Southern District of Georgia
“Not only did this defendant violate the mosque members’ right to exercise their religious beliefs, his threats caused them to live in fear for their safety and lives,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “At the FBI, we swear an oath to protect our citizens and uphold the Constitution, and violating the right to practice one’s faith, will never be tolerated.”
The FBI Atlanta Field Division investigated the case. Assistant United States Attorney Nancy Greenwood is prosecuting the case on behalf of the United States. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Justice Department Sues Subprime Auto Lender in Orange County, California, for Illegally Repossessing Servicemembers’ CarsRead the Press Release
The Justice Department today filed a lawsuit in the Central District of California against California Auto Finance, alleging that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing protected servicemembers’ motor vehicles without obtaining the necessary court orders.
The Justice Department initiated an investigation into the practices of California Auto Finance, which is based in the City of Orange, California, after United States Army Private Andrea Starks submitted a complaint to the Justice Department in November 2016.
In April 2016, Private Starks notified California Auto Finance that she would be entering the military the following month. Despite this advance notice, California Auto Finance repossessed Private Stark’s vehicle without a court order on May 9, 2016, her first day of active military training. At the time of repossession, the vehicle was parked at the home of Private Starks’ grandmother in Cedar Rapids, Iowa. The complaint states that California Auto Finance had no process to determine customers’ military status – such as checking the Department of Defense’s publicly available database – prior to repossessing their cars.
“The members of our armed forces should be able to devote their full attention to their duties without having to worry about whether their legal rights will be violated by lenders,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Repossessing vehicles without required court orders is both wrong and illegal. The Justice Department continues to ensure that we are doing all we can to protect and assist servicemembers, veterans, and their families from unlawful conduct by lenders.”
“We have a solemn duty to protect the rights of the men and women who bravely serve in our nation’s armed forces,” said United States Attorney Nicola T. Hanna of the Central District of California. “By repossessing servicemembers’ automobiles without court orders, California Auto Finance allegedly violated their rights. We respect and honor the sacrifice that servicemembers have made to our country, and we will take whatever action we can to protect their rights.”
In addition to monetary damages for affected servicemembers, the complaint asks for civil monetary penalties and injunctive relief to prevent future repossessions that violate the SCRA.
California Auto Finance is a privately held indirect auto lending company based in the City of Orange, California, that describes itself as a leading sub-prime lender in California. The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
This case is being jointly handled by the Department’s Civil Rights Division and the U.S. Attorney’s Office for the Central District of California.
The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any vehicle repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments to the servicemember. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, often in partnership with United States Attorney’s Offices. Since 2011, the Department has obtained over $467 million in monetary relief for over 119,000 servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Justice Department and West Palm Beach Announce Settlement Related to the City’s Resolution and the Department’s Immigration Cooperation Grant ConditionsRead the Press Release
The Department of Justice and the City of West Palm Beach announced today that they had reached an agreement regarding Resolution Number 112-17. The Department had been investigating whether West Palm Beach’s Resolution Number 112-17 and polices related to the resolution comply with 8 U.S.C. § 1373, which protects information sharing between local law enforcement and the Department of Homeland Security (DHS).
Following the City’s agreement to, and subsequent dissemination of, a memorandum from West Palm Beach to its employees stating West Palm Beach’s position that its local laws do not restrict information sharing with DHS, the Department issued a letter to West Palm Beach concluding its section 1373 review. The letter stated, “[i]n light of our ongoing discussions and your agreement to and sending of a memorandum to all employees stating that they are not restricted from sharing information with DHS, we find no evidence that you are currently out of compliance with section 1373.”
West Palm Beach also agreed to dismiss its lawsuit requesting a declaration that its Resolution complies with federal law and challenging the Department’s authority to impose immigration cooperation-related grant conditions.
Today’s settlement protects public safety by providing assurance that West Palm Beach’s Resolution, as interpreted by West Palm Beach, does not violate section 1373, and permits DHS to receive the information it may need to take custody of aliens who commit crimes.
Justice Department Sues to Shut Down LaGrange, Georgia Tax Return PreparerRead the Press Release
The United States sued in federal court in Newnan, Georgia, to permanently bar Lucrezia Finch Henderson from preparing federal income tax returns for others, the Justice Department announced today. The complaint alleges that Henderson unlawfully reported information on her customers’ returns that resulted in the customers claiming more tax credits and refunds than they were entitled to receive.
As alleged in the complaint, Henderson engaged in abusive tax schemes such as reporting fake businesses on her customers’ returns in order to generate losses to lower their tax liabilities. Henderson falsely claimed education credits for customers who did not attend college that year, according to the complaint. According to that complaint, Henderson prepares tax returns at Infinity Tax located at 104 Sage Commercial Drive, Suite B, in Lagrange, Georgia.
The IRS has a list of steps on their website that you can take now in anticipation of filing your 2017 federal income tax return and ten tips for choosing a tax preparer. 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 information on their website about selecting 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.
Justice Department Files Lawsuit to Shut Down St. Louis Tax Preparation BusinessRead the Press Release
A mother-daughter tax return preparer team in St. Louis, Missouri, prepares false federal income tax returns for their customers, according to a new lawsuit filed by the Department of Justice today. The suit asks the court to permanently bar Cherlynn Harrington, Linda McClendon, and their business Goodlink, LLC d/b/a Goodlink Tax Services from preparing federal income tax returns for others. The complaint alleges that defendants unlawfully understate their customers’ income tax liabilities and overstate their customers’ refunds.
The complaint alleges that Harrington and McClendon fabricate income and/or expenses in order to improperly claim the Earned Income Tax Credit (EITC), sometimes charging their customers more than $1,500 to prepare these false tax returns. In some cases, Harrington made unauthorized withdrawals from debit cards loaded with her customers’ false tax refunds according to the complaint.
The IRS has a list of steps on their website that you can take now in anticipation of filing your 2017 federal income tax return. 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.
XTO Energy Inc. to Make System Upgrades and Undertake Projects to Reduce Air Pollution on the Fort Berthold Indian Reservation in North DakotaRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Houston-based XTO Energy Inc., resolving alleged Clean Air Act violations stemming from the company’s oil and gas production operations on the Fort Berthold Indian Reservation in North Dakota.
The settlement resolves claims that XTO failed to adequately design, operate, and maintain vapor control systems on its storage tanks at oil and natural gas well pads, resulting in emissions of volatile organic compounds (VOCs). VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.
As part of the settlement, XTO will ensure the adequacy of its vapor control systems and improve its operation and maintenance practices, monitoring, and inspections. These improvements to XTO’s operations on the Fort Berthold Indian Reservation will significantly reduce VOC emissions, including through monthly use of infrared cameras during inspections to better detect and respond to air emissions. In addition, EPA estimates that XTO will spend at least $450,000 to fund an environmental mitigation project. XTO will also pay a $320,000 civil penalty.
EPA estimates that XTO’s system upgrades will annually reduce the emission of at least 2,200 tons of VOCs. Improved operation and maintenance will result in additional emissions reductions. Today’s settlement resolves alleged violations at all 20 of XTO’s well pads on the Fort Berthold Indian Reservation.
“This settlement will reduce harmful air pollutants, benefiting the health of residents of the Fort Berthold Indian Reservation, as well as those living in surrounding communities,” said Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division of the Department of Justice. “This case further demonstrates the shared commitment of the Justice Department and EPA to enforce the nation’s environmental laws, including in Indian Country.”
“This settlement with XTO Energy will reduce emissions from its production facilities on the Fort Berthold Reservation and will benefit tribal communities and regional air quality,” said EPA Regional Administrator Doug Benevento. “EPA will continue to work with energy producers and our state and tribal partners to ensure that oil and natural gas extraction occurs in accordance with the laws that protect our air and water resources.”
As part of the settlement, XTO has agreed to evaluate the design and capacity of its vapor control systems, modify those vapor control systems as necessary to ensure that that they are adequately designed and sized to collect and convey emissions to a control device, implement an enhanced inspection and maintenance program, and undertake monthly infrared camera inspections to identify any emissions and take prompt corrective action to address those emissions.
XTO will also conduct an environmental mitigation project to install and operate auto-gauging equipment on storage tanks to reduce how often thief hatches are opened. This project is expected to significantly reduce VOC emissions.
XTO’s oil and natural gas production operations in North Dakota use storage tanks to store produced oil and produced water. The oil and water are stored at separate well pads prior to transport by pipeline or truck. Multiple storage tanks are typically present at a well pad and are frequently controlled by the same vapor control system.
The case arose from EPA’s inspections and information requests in 2015 that found violations related to VOC emissions from produced oil and produced water storage tanks, due to undersized vapor control systems and inadequate operation and maintenance.
This settlement is part of EPA’s national enforcement initiative to reduce public health and environmental impacts from energy extraction activities. For more information about EPA’s enforcement initiative, click here: http://www2.epa.gov/enforcement/national-enforcement-initiative-ensuring-energy-extraction-activities-comply.
The proposed consent decree, lodged in the U.S. District Court for the District of North Dakota, is subject to a 30-day public comment period and approval by the federal court. Information about submitting a public comment is available at: www.justice.gov/enrd/consent-decrees.
Former Federal Prison Lieutenant Sentenced for Using Excessive Force and Obstructing InvestigationRead the Press Release
Gregory McLeod, 44, of East Point, Georgia, and a former correctional officer and supervisor at the U.S. Penitentiary in Atlanta (USP Atlanta), was sentenced today in federal court to one year and eight months in prison, followed by three years supervised release, for using excessive force against an inmate in 2016, and for writing two false reports about the incident in an effort to cover up his crime.
According to information presented in court, McLeod, who achieved the rank of lieutenant, and worked as a supervisor at the prison, strip searched an inmate in his office in front of three other correctional officers. After the inmate complained that the strip search was taking too long, McLeod repeatedly punched the inmate in his face, injuring him.
Following the assault, McLeod wrote an incident report and a separate memorandum about the encounter in which he falsely claimed that the inmate swung a closed fist at McLeod and attempted to assault other officers before the officers could apply hand and leg restraints.
“Correctional officers have an important duty to protect inmates from violence or any act of unreasonable force,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “McLeod’s violent actions, and attempt to obstruct justice, blatantly violated the inmate’s civil rights. This Justice Department will not tolerate any abuse of power by a law enforcement officer and will continue to prosecute these cases to the fullest extent of the law.”
“McLeod broke the law and repeatedly lied about his conduct,” said U.S. Attorney Byung J. “BJay” Pak. “The men and women who work in prisons and jails have very stressful jobs, but they must adhere to the laws that each has sworn to uphold. At the same time, inmates and detainees in our nation’s prisons and jails have the right to be free from the use of excessive force.”
“We certainly understand that detention officers have a difficult job maintaining order and protecting inmates in our nation’s prisons,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “But inherent in that job is a power that cannot be abused. It is unfortunate that the actions of this one defendant harm the reputation of the vast majority of officers who respect that power.”
“Violence against inmates and false reporting have no place in the federal prison system,” stated Robert A. Bourbon, Special Agent in Charge of the Department of Justice Office of the Inspector General’s (OIG) Miami Field Division. “The DOJ OIG is committed to ensuring that there are serious consequences for any DOJ employee who intentionally violates the rights of inmates and lies about it.”
At his guilty plea on Nov. 22, 2017, McLeod admitted that he used excessive force and that he intentionally violated the inmate’s constitutional rights. McLeod also admitted that he intentionally impeded and obstructed the investigation of the incident by writing the two false reports.
McLeod was sentenced by U.S. District Judge Steven C. Jones to one year and eight months in prison, followed by three years supervised release.
This case was investigated by the Atlanta Division of the FBI and the Department of Justice OIG. This case was prosecuted by Assistant U.S. Attorney Brent Alan Gray, and Department of Justice Trial Attorney Mary J. Hahn of the Civil Rights Division.
District Court Enters Permanent Injunction and Civil Penalty Against Utah-Based TelemarketersRead the Press Release
A federal court entered an order against three Utah-based telemarketing companies and their owner, the Department of Justice announced today. That order permanently enjoins them from engaging in deceptive and abusive telemarketing practices. The order also imposes a civil monetary penalty.
The Department filed a complaint in May 2011, alleging that the defendants, Feature Films for Families Inc., Corporations for Character L.C., Family Films of Utah Inc., and Forrest S. Baker III, committed widespread violations of the FTC Act and Telemarketing Sales Rule in various telemarketing campaigns to sell DVDs and movie tickets, and in charitable solicitation call campaigns. The complaint alleged that the defendants: (1) made multiple deceptive claims regarding the use of sales proceeds and charitable donations and the sales purpose of calls; (2) placed millions of calls to phone numbers on the National Do Not Call Registry under the guise of survey and informational calls; (3) ignored consumers’ prior do-not-call requests; (4) transmitted inaccurate caller-identification information; (5) failed to make required oral disclosures; and (6) abandoned calls.
“Unwanted telemarketing calls invade the privacy of American consumers,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the Federal Trade Commission to ensure telemarketers adhere to laws designed to protect against abusive and deceptive telemarketing practices.”
On May 25, 2016, following eight days of trial, a jury found the defendants committed more than 117 million knowing violations of the Telemarketing Sales Rule, including 99 million calls to phone numbers on the Do Not Call Registry, and more than four million additional calls in which they made misleading statements to induce DVD sales. The verdict was the first-ever in an action to enforce the Telemarketing Sales Rule and Do Not Call Registry rules.
The stipulated final order, entered by the district court, permanently enjoins the defendants from making material misrepresentations or omissions in the course of marketing entertainment products, services, or recordings, and from violating any provision of the Telemarketing Sales Rule. The stipulated order also imposes a civil penalty judgment of approximately $45.4 million, of which all but $487,735 is conditionally suspended based on the defendants’ inability to pay the entire penalty.
“As this case demonstrates, the FTC is aggressively pursuing law enforcement action against those that violate our nation’s Do Not Call rules, including those that use deception to secure sales or donations,” said Tom Pahl, Acting Director of the FTC’s Bureau of Consumer Protection.
This matter was handled by Trial Attorneys Arturo DeCastro and David A. Frank of the Civil Division’s Consumer Protection Branch, with assistance from Attorney Michael Tankersley of the Federal Trade Commission and the U.S. Attorney’s Office for the District of Utah.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch.
Wyoming Military Department Found Liable for Subjecting Employee to Sexual HarassmentRead the Press Release
WASHINGTON –The Justice Department today announced that on March 21, 2018, a federal district court in Casper, Wyoming, found that the Wyoming Military Department (WMD) discriminated against former employee Amanda Dykes by subjecting her to sexual harassment and constructively discharging her. The verdict was returned after a July 2017 bench trial during which the Justice Department produced evidence that the defendant violated Title VII of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, national origin, sex, and religion.
The evidence produced at trial showed that Dykes was subjected to sexual harassment by her direct supervisor, former employee Don Smith, when both worked at WMD’s Wyoming Youth Challenge Program. Smith subjected Dykes to persistent, unwelcomed conduct including poems, songs, and emails professing his affection and love for her as well as constant visits to her office. These intensified to such a degree that Dykes asked her subordinates to help her avoid being left alone with her supervisor.
Dykes reported the supervisor’s conduct to her employer’s human resources department as well as to his direct supervisor, but received no assistance in remedying the harassment. The court found that harassing behavior persisted for over 18 months despite Dykes’ numerous complaints, that no reasonable employee could be expected to remain in her job under these circumstances, and that Dykes had no choice but to resign her position in September 2011 to avoid the continued harassment.
The district court ordered WMD to pay $221,030.62 to Dykes for the salary and benefits she lost as a result of her constructive discharge.
This judgment represents the first successful sexual harassment trial verdict obtained in a Title VII case since the launch of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative (SHWI), which focuses on workplace sexual harassment in the public sector.
As part of the Initiative, the Justice Department will continue to bring sex discrimination claims against state and local government employers with a renewed emphasis on sexual harassment charges. The Department will also work to develop effective remedial measures that can be used to hold public sector employers accountable where Title VII violations have been found, including identifying changes to existing employer practices and policies that will result in safe work environments. More information about the Civil Rights’ Division’s Sexual Harassment in the Workplace Initiative can be found here.
“The Justice Department vigorously enforces Title VII to ensure that people can work free from sexual harassment and retaliation,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The verdict sends the clear message that this Justice Department will continue to effectively combat sexbased discrimination whenever it occurs in a public sector workplace.”
Dykes originally filed her sexual harassment charge against the WMD with the Denver Field Office of the Equal Employment Opportunity Commission (EEOC), which investigated and determined that there was reasonable cause to believe that discrimination had occurred and referred the matters to the Department of Justice.
More information about Title VII and other federal employment laws is available at the division’s Employment Litigation Section website. The continued enforcement of Title VII is a priority of the Civil Rights Division. Additional information about the Civil Rights Division of the Department of Justice is available on the division website.
EEOC enforces federal laws prohibiting employment discrimination. Further information about EEOC is available on its website. The United States was represented in this case by Robert Galbreath, Torie Atkinson, Brian McEntire, and Patty Stasco.
International Competition Network Adopts Guiding Principles for Procedural Fairness and New Recommendations for Merger ReviewRead the Press Release
At its annual conference, the International Competition Network (ICN) adopted guiding principles for procedural fairness in competition agency enforcement; substantially revised merger recommended practices addressing international enforcement cooperation, timing of notification, and review periods; and presented the results of a member survey on vertical merger assessment and related economic issues. The ICN also issued a strategy report on advocacy monitoring and evaluation methods, and interim reports on the treatment of vertical restraints under unilateral conduct laws and key elements of cartel leniency programs, the Department of Justice announced today.
The ICN held its 17th annual conference, hosted by the Competition Commission of India, on March 21-23, 2018. Nearly 500 delegates from over 70 jurisdictions participated, including competition experts from international organizations and the legal, business, academic, and consumer communities. Deputy Assistant Attorney General Roger Alford led the Department of Justice’s delegation; the Federal Trade Commission’s delegation was led by Acting Chairman Maureen Ohlhausen. Assistant Attorney General Makan Delrahim had planned to attend, but was required to remain in Washington due to the litigation schedule in a Division matter. The conference showcased the achievements of the ICN working groups on competition advocacy, agency effectiveness, cartels, mergers and unilateral conduct, and featured discussion of current competition issues and the future direction of the network.
“The Division looks forward each year to this opportunity to engage face to face with enforcer colleagues from around the world,” said Assistant Attorney General Delrahim. “The relationships that we develop through ICN are key to our enforcement program, and to promoting sound competition policy worldwide. We commend the Competition Commission of India for hosting an excellent conference.”
Deputy Assistant Attorney General Alford spoke on a panel discussing online markets and vertical restraints. The panel was part of the Unilateral Conduct Working Group’s ongoing work on vertical restraints. The Working Group, co-chaired by the Department of Justice, presented an interim report examining a series of hypothetical vertical restraints and their effect on competition and potential resulting efficiencies.
“The ICN continues to play a critical role in addressing evolving issues and challenges that confront the international competition community,” said FTC Acting Chairman Maureen Ohlhausen. “As exemplified by this year’s work product, led by the FTC, on merger review and procedural due process, there has been substantial progress toward convergence of competition policy around the world.”
Acting Chairman Ohlhausen helped lead the conference’s panel discussion of how competition authorities can communicate the benefits of competition and advocate for pro-competitive policies when the political, social, or economic context is not in their favor. The panel explored how advocacy strategies may differ and recognized that competition advocacy, whatever the context or climate, is a crucial component of a competition agency’s work. Randolph Tritell, Director of the FTC’s Office of International Affairs, led the concluding panel, showcasing the implementation of the ICN’s work across the globe.
The FTC co-chairs the ICN’s Merger Working Group, which promotes convergence toward best practices in merger process and analysis and seeks to reduce the public and private costs of multijurisdictional merger reviews. This year, the Merger Working Group presented revised Recommended Practices on: 1) international enforcement cooperation; 2) timing of notification; and 3) review periods. The working group also presented results of its agency survey on vertical merger analysis and related economic assessment.
The Agency Effectiveness Working Group produced new recommendations on due process in competition law enforcement. The FTC-led project developed Guiding Principles for procedural fairness, recommendations for internal agency practices that support sound decision making, and implementation tips for good agency enforcement process. The group also studied how economic thinking and economic analysis can be incorporated into agencies’ investigations and decision-making processes. The working group introduced new video training modules on merger remedies and enforcement cooperation as part of the ICN’s online interactive educational center for competition authorities from around the world.
The Cartel Working Group addresses the challenges of anti-cartel enforcement, including the prevention, detection, investigation and punishment of cartel conduct. The Cartel Working Group presented an interim report on survey findings regarding major characteristics of leniency regimes, incentives and disincentives for leniency applications and interaction between leniency and other policies.
The Advocacy Working Group provides guidance and facilitates experience-sharing to improve the effectiveness of ICN members’ competition advocacy initiatives. At the conference, the group released its second report as part of the Strategy Project. The report analyzes survey results on how competition agencies assess their advocacy actions and programs, and identifies common practices and trends. This work will inform the development of guidance covering the planning, monitoring, and evaluation of advocacy actions and programs. The working group also expanded the Market Studies Information Store, which now includes over 700 market studies conducted by member agencies, and facilitates knowledge-sharing, collaboration, and best practices in market studies.
Created in October 2001 to increase understanding of competition policy and promote convergence toward sound antitrust enforcement around the world, the ICN, founded by 15 agencies including the Department of Justice’s Antitrust Division and the FTC, has grown to 138 member agencies from 125 jurisdictions, supported by a wide network of non-government advisors from around the world.
Former CEO of Israeli Sales and Marketing Company Charged for Role in Fraudulent Binary Options SchemeRead the Press Release
The former CEO of the Israel-based company Yukom Communications, a purported sales and marketing company, was charged in an indictment filed on March 22, for her alleged participation in a scheme to defraud investors in the United States and across the world in financial instruments known as “binary options.”
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office made the announcement.
Lee Elbaz, 36, of Israel, was charged in the District of Maryland with one count of conspiracy to commit wire fraud and three counts of wire fraud.
The indictment alleges that Yukom provided investor “retention” services for two websites, known as BinaryBook and BigOption, that were used to promote and market purported binary options, and that those binary options were fraudulently sold and marketed. The indictment further alleges that in her role as CEO of Yukom, Elbaz, along with her co-conspirators and subordinates, misled investors using BinaryBook and BigOption by falsely claiming to represent the interests of investors but that, in fact, the owners of BinaryBook and BigOption profited when investors lost money; by misrepresenting the suitability of and expected return on investments through BinaryBook and BigOption; by providing investors with false names and qualifications and falsely claiming to be working from London; and by misrepresenting whether and how investors could withdraw funds from their accounts. Representatives of BinaryBook and BigOption, working under Elbaz’s supervision, misrepresented the terms of so-called “bonuses,” “risk free trades” and “insured trades,” and deceptively used these supposed benefits in a manner that in fact harmed investors, according to the indictment.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI’s Washington Field Office. Trial Attorneys Ankush Khardori and Tracee Plowell of the Criminal Division’s Fraud Section are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Department of Justice Announces Second Annual Attorney General’s Award for Distinguished Service in PolicingRead the Press Release
Attorney General Jeff Sessions today announced the Second Annual Attorney General’s Award for Distinguished Service in Policing.
The Attorney General’s Award recognizes individual state, local or tribal sworn, rank- and-file police officers and deputies for exceptional efforts in community policing. The awarded officer(s) or deputy(ies) will have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations or innovations in policing.
“President Trump and I support law enforcement at all levels – and we always will. We know whose side we are on. We are on the side of law-and-order. This means we are on the side of the approximately 85 percent of all law enforcement officers that serve at the state, local, and tribal level,” said Attorney General Sessions. “These men and women serve and protect us from violent crime, dangerous opioids, and criminal gangs. The Department of Justice is committed to supporting the law enforcement community that keeps this great nation safe and makes it even safer. Today we honor our law enforcement officers by announcing the second annual Attorney General’s Award for Distinguished Service in Policing.”
Within each category, an award will be given to law enforcement agencies serving small, medium, and large jurisdictions:- Small: Agencies serving populations of fewer than 50,000
- Medium: Agencies serving populations 50,000 to 250,000
- Large: Agencies serving populations of more than 250,000
By distinguishing and rewarding these efforts, the Department strives to promote and sustain its national commitment to policing and to advance proactive policing practices that are fair and effective.
With the Attorney General’s Award for Distinguished Service in Policing, the Office of the Attorney General recognizes that within and across the nation’s more than 18,000 law enforcement agencies, individual officers, and deputies are working hard to keep our communities safe.
The application for nominees can be found at https://www.justice.gov/ag/policing-award.Chief of Staff for Former Federal Congressman Convicted for Obstructing Congressional InvestigationRead the Press Release
The chief of staff for a former member of the U.S. House of Representatives has been convicted for obstructing a congressional investigation into the alleged misappropriation of Congressional funds to pay for campaign activity, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
David G. Bowser, 45, of Arlington, Virginia, was convicted of one count of obstruction of proceedings, one count of concealment of material facts and three counts of making false statements. A sentencing date has not been set.
“David Bowser abused his position as a chief of staff on Capitol Hill to fund political campaigns with taxpayer funds, and then lied to cover up his crimes,” said Acting Assistant Attorney General Cronan. “The Criminal Division is committed to preserving the public’s confidence in our government by investigating and prosecuting corrupt public officials. I commend the career prosecutors in the Public Integrity Section, as well as the dedicated agents of the FBI, for their exemplary work on this case.”
Bowser was indicted in April 2016. From 2008 until January 2015, Bowser served as the chief of staff for a then-U.S. congressman and worked on behalf of and served as a decision maker for the congressman’s political campaigns. In or about June 2012, Bowser, on behalf of the congressman’s office, hired Brett O’Donnell, a communications consultant, to assist the congressman with his messaging. Immediately upon joining the congressman’s office, O’Donnell assisted the congressman with his reelection campaign for the House of Representatives in 2012, at Bowser’s direction. From January 2013 until his termination from the congressman’s office in March 2014, O’Donnell also provided substantial services to the congressman’s Senate campaign at Bowser’s direction, including preparing for political debates, drafting and practicing campaign speeches and advising on campaign messaging, among other services. Bowser caused the congressman’s office to pay O’Donnell approximately $43,750 in congressional, taxpayer funds. Such funds must be used for official, congressional purposes, and cannot be used in furtherance of a congressman’s political campaign or to pay for any campaign-related expenses.
Bowser was convicted for obstructing a congressional ethics investigation into the payments to O’Donnell. In March 2014, the Office of Congressional Ethics (OCE), a non-partisan office established in the House of Representatives to investigate allegations of misconduct, began to investigate allegations that O’Donnell was being paid with congressional funds for performing campaign-related services. During the course of OCE’s investigation, Bowser attempted to obstruct the investigation by, among other things, delaying and failing to produce relevant documents; influencing the testimony of witnesses; and falsely stating that O’Donnell was solely hired to provide official services.
On Sept. 3, 2015, O’Donnell pleaded guilty in the Middle District of Georgia to one count of making false statements in connection to this case. During O’Donnell’s interview with OCE, in which he discussed the work that he performed for Bowser and the congressman, he made several false statements in an effort to minimize and conceal his role with the campaigns.
The FBI is investigating the case. Trial Attorneys Todd Gee and Sean F. Mulryne of the Criminal Division’s Public Integrity Section are prosecuting the case.
California Man Sentenced to 27 Months in Prison for the Sale of Black Rhinoceros HornsRead the Press Release
Edward N. Levine, 67, a resident of Novato, California, was sentenced today to 27 months in prison and followed by three years of supervised release for the sale of two black rhinoceros horns in Las Vegas. Levine will also be prohibited from wildlife and antique sales as a result of today’s sentencing.
A jury convicted Levine on September 14, 2017, of conspiracy to violate the Lacey and Endangered Species Acts and a substantive violation of the Lacey Act for knowingly selling the horns to an undercover agent from the United States Fish and Wildlife Service (USFWS). His co-defendant, Lumsden Quan, had previously pleaded guilty to the indictment and was sentenced in December 2015 to 367 days of imprisonment and a $10,000 fine.
The sentence was announced by Assistant Attorney General Jeffrey H. Wood for the Environment and Natural Resources Division of the Department of Justice, U.S. Attorney Dayle Elieson for the District of Nevada, and Acting Chief of Law Enforcement Edward Grace for USFWS.
The Honorable Chief Judge Gloria M. Navarro in U.S. district court in Las Vegas sentenced Levine for his role in the conspiracy, which involved negotiating the sale and transporting the horns from California to Nevada in March 2014. Levine and Quan ultimately sold the horns to an undercover agent posing as a taxidermist for $55,000 in a Las Vegas casino hotel room. Levine had faced a maximum of five years imprisonment for violating the Lacey Act.
“Complex international investigations such as Operation Crash have demonstrated the link between wildlife trafficking and criminal organizations also involved in other serious transnational organized crimes including trafficking of illegal firearms and drugs,” said Acting Chief of Law Enforcement Edward Grace for the U.S. Fish and Wildlife Service. “Mr. Levine not only illegally bought and sold horns from critically endangered black rhinos; he was previously convicted and served time for his role in drug trafficking with South American drug cartel.”
Levine was identified as part of “Operation Crash” – a nationwide effort led by the USFWS and the Justice Department to investigate and prosecute those involved in the black market trade of rhinoceros horns. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. As of October 2017, Operation Crash has resulted in the prosecution and sentencing of nearly 50 subjects and recovery of approximately $7.8 million through fines, forfeiture, and restitution. Levine was the only Operation Crash target to proceed to trial.
The black rhinoceros is an herbivore species native to Africa of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international laws, including the Endangered Species Act. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 183 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets.
The investigation was handled by the USFWS’s Office of Law Enforcement, the U.S. Attorney’s Office for the District of Nevada, and the Justice Department’s Environmental Crimes Section. The government is represented by Trial Attorney Ryan Connors, Assistant U.S. Attorney Kathryn Newman, and paralegals Christopher Kopf and Amanda Backer.
Attorney General Sessions Announces Regulation Effectively Banning Bump StocksRead the Press Release
Today, Attorney General Jeff Sessions announced that the Department of Justice is proposing to amend the regulations of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, clarifying that bump stocks fall within the definition of “machinegun” under federal law, as such devices allow a shooter of a semiautomatic firearm to initiate a continuous firing cycle with a single pull of the trigger.
In making the announcement, Attorney General Sessions made the following statement:
“Since the day he took office, President Trump has had no higher priority than the safety of each and every American,” said Attorney General Jeff Sessions. “That is why today the Department of Justice is publishing for public comment a proposed rulemaking that would define ‘machinegun’ to include bump stock-type devices under federal law—effectively banning them. After the senseless attack in Las Vegas, this proposed rule is a critical step in our effort to reduce the threat of gun violence that is in keeping with the Constitution and the laws passed by Congress. I look forward to working with the President’s School Safety Commission to identify other ways to keep our country and our children safe, and I thank the President for his courageous leadership on this issue.”
On February 20, 2018, the President issued a memorandum instructing the Attorney General “to dedicate all available resources to… propose for notice and comment a rule banning all devices that turn legal weapons into machineguns.” This NPRM is in response to that direction, and would make clear that the term “machinegun” as used in the National Firearms Act (NFA), as amended, and Gun Control Act (GCA), as amended, includes all bump-stock-type devices that harness recoil energy to facilitate the continuous operation of a semiautomatic long gun after a single pull of the trigger. If the NPRM is made final, bump-stock-type devices would be effectively banned under federal law and current possessors of bump-stock-type devices would be required to surrender, destroy, or otherwise render the devices permanently inoperable. The comment period for the NPRM is 90 days from the date of publication in the Federal Register.
To view the Notice of Proposed Rulemaking click here.
Please note: This is the text of the Bump Stock Notice of Proposed Rulemaking (NPRM) as signed by the Attorney General, but the official version of the NPRM will be as it is published in the Federal Register.”Man Convicted of Hate Crime for Using a Stun Device During a Racially-Motivated Assault of His NeighborRead the Press Release
Following a three-day trial, a jury found Mark Porter, 59, of Lake Havasu City, Arizona, guilty yesterday of committing a federal hate crime when he used a stun device during the racially-motivated assault of a neighbor at his apartment complex in Draper, Utah. Assistant Attorney General for the Civil Rights Division John Gore, U.S. Attorney for the District of Utah John W. Huber, and Special Agent in Charge for the Salt Lake City Field Office of the Federal Bureau of Investigation Eric Barnhart announced that the defendant was found guilty of the only offense charged in the indictment, a violation 42 U.S.C. § 3631 for using force and the threat of force to injure, intimidate, and interfere with an African-American man because of his race and because of his occupancy of a nearby apartment in the complex. The jury further found that the defendant used a dangerous weapon – a stun cane.
Evidence presented at trial showed that the defendant shouted a racial slur at the victim’s 7-year-old son as the boy rode on a scooter in a common area at the apartment complex. After the defendant told the child to “get out of here,” he used the stun cane to injure the victim, knocking the victim to the ground. The defendant then used a racial slur to refer to the victim and his son and told them both to “get out of here.”
Evidence presented at trial also established that, prior to the incident, the defendant had told an employee and maintenance staff at the apartment complex that he did not want to live near any African-Americans. Immediately prior to the incident with the boy and his father, the defendant told another neighbor that he thought that African-Americans needed to be “exterminated.”
“Porter’s violent conduct, motivated by his intolerance of another race, is an egregious crime that will not be tolerated by this Justice Department,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We will continue to protect the civil rights of all individuals and vigorously prosecute hate crime cases.”
“There is no place in Utah for race-motivated hatred and violence,” said U.S. Attorney John W. Huber. “All families deserve the opportunity to live peaceably in their homes where they may pursue happiness in safe environments. The jury in this case spoke on behalf of our Utah communities and definitively stated that this criminal conduct will not be tolerated.”
Sentencing is set for May 30 before U.S. District Judge Dee Benson of the District of Utah. The defendant faces a maximum sentence of 10 years and a fine of $250,000.
The case was investigated by the Salt Lake City Field Office of the FBI. The case is being prosecuted by Assistant U.S. Attorney J. Drew Yeates of the United States Attorney’s Office and Trial Attorney Rose E. Gibson of the Civil Rights Division’s Criminal Section.
Justice Department Seeks to Shut Down Indianapolis Tax PreparerRead the Press Release
An Indianapolis man reported false information on federal income tax returns he prepared for his customers, according to a new lawsuit filed by the U.S. Department of Justice today. In the lawsuit’s complaint, the government alleges that Antonio Chappell prepared false tax returns at G & A Tax Service LLC (G & A Tax), a tax preparation firm owned by Chappell with locations in Indianapolis at 4857 Oakbrook Drive and 4721 North Franklin Road. The government’s complaint, filed in federal court in Indianapolis, Indiana, asks the court to entirely bar Chappell and G & A Tax from preparing federal tax returns for others.
According to the complaint, Chappell prepares fraudulent federal tax returns for his customers by falsely reporting income and expenses to inflate claims for the Earned Income Credit. The complaint also alleges that Chappell knowingly or recklessly misrepresents his customers’ filing statuses and reports non-qualifying dependents on customers’ tax returns in order to maximize the customers’ Earned Income Credit and qualify them for the Additional Child Tax Credit.
Further, Chappell and others at G & A Tax falsely submitted income tax returns under another tax preparer’s Preparer Tax Identification Number – including at least 184 returns filed after that tax preparer’s death, according to the complaint. The complaint also alleges that Chappell attempted to facilitate the sale of dependent information to at least one customer in order to claim false tax credits for the customer, provided a customer a fraudulent document to mislead an IRS examiner during an audit, and instructed at least one customer to falsely represent that the customer provided support to the dependents claimed on his return.
The IRS has a list of steps on their website that you can take now in anticipation of filing your 2017 federal income tax return and ten tips for choosing a tax preparer. 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 information on their website about selecting 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.
Justice Department Reaches Settlement with Union Parish Detention Center to Resolve ADA ViolationsRead the Press Release
The Justice Department today reached a settlement agreement with Union Parish Detention Center (UPDC), a correctional facility located in Farmerville, Louisiana.
The settlement agreement resolves a complaint under the Americans with Disabilities Act (ADA) that UPDC held a detainee with human immunodeficiency virus (HIV) in isolated, segregated housing for approximately six months because he has HIV. UPDC cooperated with the Department throughout the investigation.
Under the agreement, UPDC will not segregate detainees in the future on the basis of their HIV status. The agreement also requires UPDC to adopt nondiscrimination policies, designate an ADA coordinator, establish an ADA complaint procedure, and train all staff annually on HIV and nondiscrimination obligations. In addition, UPDC will pay $27,500 in damages to the complainant.
“This agreement ensures that Union Parish Detention Center will respect the right of individuals with HIV to equal treatment under the law,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Segregation of detainees with HIV in jails or prisons is unlawful, subjects individuals to unwarranted stigma and harm, and will not be tolerated by this Justice Department.”
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Real Estate Investor Sentenced to 30 Months in Prison for Rigging Bids at Northern California Public Foreclosure AuctionsRead the Press Release
A real estate investor was sentenced today for his role in conspiracies to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Michael Marr was charged on Nov. 19, 2014, in an indictment returned by a federal grand jury in the Northern District of California. He was convicted on June 2, 2017, of conspiring to rig bids at foreclosure auctions in Alameda and Contra Costa County. Today, Marr was sentenced to serve 30 months in prison and to serve 3 years of supervised release. In addition to his term of imprisonment, Marr was ordered to pay a criminal fine of $1,397,061.59.
“Michael Marr was a driving force behind a multi-year conspiracy to corrupt the public foreclosure auction process through a system of illegal payoffs,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Today’s sentence reflects the seriousness of that crime.”
The evidence at trial showed that the defendant conspired with others to rig bids to obtain hundreds of properties sold at foreclosure auctions. The conspirators designated the winning bidders to obtain selected properties at the public auctions, and negotiated payoffs among themselves in return for not competing with one another. They subsequently conducted private auctions among themselves at or near the courthouse steps where the public auctions were held, awarding the properties to the conspirators who submitted the highest bids in those private auctions.
As the CEO of Community Fund, LLC and Community Realty Property Management Inc., Marr sent multiple employees to the foreclosure auctions to rig bids on his behalf. As part of the conspiracies, Marr’s agents purchased several hundred properties through the bid-rigging conspiracies and were owed payoffs on hundreds more.
When real estate properties are sold at public auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with the remaining proceeds paid to the homeowner.
The sentence is a result of an ongoing investigation into bid rigging at public real estate foreclosure auctions in California’s San Francisco, San Mateo, Alameda, and Contra Costa counties, which is 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 contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Ohio Man Indicted for Hate Crime AssaultRead the Press Release
The Department of Justice today announced that an Ohio man has been indicted by a federal grand jury in the Southern District of Ohio on a charge of violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act.
According to the indictment, on or about Feb. 4, 2017, outside of a restaurant located in Cincinnati, Ohio, Izmir Koch, 32, willfully caused bodily injury to a person because of that person’s perceived religion. The indictment alleges that Koch hit and kicked an individual (Victim-1), after Victim-1 represented that he was Jewish. Victim-1 is alleged to have suffered bodily injury as a result of the assault, including a fractured orbital floor.
If convicted, Koch faces a statutory maximum sentence of 10 years in prison, a fine of $250,000, or both. An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Cincinnati Division of the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Megan Gaffney of the Southern District of Ohio and Trial Attorney Gabriel Davis of the Civil Rights Division of the Department of Justice.
Justice Department Files Sexual Harassment Lawsuit Against Owners of Cincinnati Rental PropertiesRead the Press Release
The Justice Department today announced that it has filed a lawsuit against John and Susan Klosterman alleging that female tenants in the Klostermans’ residential rental properties in Cincinnati, Ohio, were subjected to sexual harassment, coercion, intimidation, and threats in violation of the federal Fair Housing Act. Each of the defendants owns or manages properties where the illegal conduct occurred.
Today’s lawsuit alleges that John Klosterman sexually harassed female residents at the rental properties from at least 2013 through the present. According to the complaint, he engaged in harassment that included, among other things, making unwelcome sexual advances and comments, engaging in unwanted sexual touching, offering to reduce rent and overlooking or excusing late or unpaid rent in exchange for sex, evicting or threatening to evict female tenants who objected to or refused sexual advances, and entering the homes of female tenants without their consent. The lawsuit further alleges that Susan Klosterman is liable under the Fair Housing Act because John Klosterman managed the rental properties on her behalf when he engaged in the harassment, coercion, intimidation, and threats.
“No woman should have to endure sexual harassment in order to remain in her home,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Sexual harassment in housing is unacceptable and illegal, and landlords should be on notice that the Justice Department will continue to vigorously enforce the Fair Housing Act to combat this type of discrimination and to obtain relief for victims.”
“Fair housing is fundamental,” said U.S. Attorney Benjamin Glassman. “No one should have to experience a landlord’s pervasive sexual harassment. That’s not only wrong, but also illegal under federal law. This office is committed to vigorously enforcing the protections guaranteed by the Fair Housing Act.”
In October 2017, the Justice Department’s Civil Rights Division announced the Sexual Harassment in Housing Initiative. The Initiative specifically seeks to increase the Department’s efforts to protect individuals from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners.
The Justice Department has filed or settled eight sexual harassment cases since Jan. 20, 2017, and has recovered over $1.6 million for victims of sexual harassment in housing.
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties and a court order barring future discrimination. The complaint contains allegations of unlawful conduct. The allegations must be proven in federal court.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or operated by John or Susan Klosterman, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line:
- English language: Call 1-800-896-7743, then press 1 to continue in English and select mailbox 9992 to leave a message; or
- Spanish language: Call 1-800-896-7743, then press 2 to continue in Spanish and select mailbox 6 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected].
- English language: Call 1-800-896-7743, then press 1 to continue in English and select mailbox 9992 to leave a message; or
Attorney General Sessions Issues Memo to U.S. Attorneys on the Use of Capital Punishment in Drug-Related ProsecutionsRead the Press Release
Today Attorney General Sessions issued the following memo to U.S. Attorneys providing guidance regarding the use of capital punishment in drug-related prosecutions:
"The opioid epidemic has inflicted an unprecedented toll of addiction, suffering, and death on communities throughout our nation. Drug overdoses, including overdoses caused by the lethal substance fentanyl and its analogues, killed more than 64,000 Americans in 2016 and now rank as the leading cause of death for Americans under 50. In the face of all of this death, we cannot continue with business as usual.
"Drug traffickers, transnational criminal organizations, and violent street gangs all contribute substantially to this scourge. To combat this deadly epidemic, federal prosecutors must consider every lawful tool at their disposal. This includes designating an opioid coordinator in every district, fully utilizing the data analysis of the Opioid Fraud and Abuse Detection Unit, as well as using criminal and civil remedies available under federal law to hold opioid manufacturers and distributors accountable for unlawful practices.
"In addition, this should also include the pursuit of capital punishment in appropriate cases. Congress has passed several statutes that provide the Department with the ability to seek capital punishment for certain drug-related crimes. Among these are statutes that punish certain racketeering activities (18 U.S.C. § 1959); the use of a firearm resulting in death during a drug trafficking crime (18 U.S.C. § 924(j)); murder in furtherance of a continuing criminal enterprise (21 U.S.C. § 848(e)); and dealing in extremely large quantities of drugs (18 U.S.C. § 3591(b)(1)). I strongly encourage federal prosecutors to use these statutes, when appropriate, to aid in our continuing fight against drug trafficking and the destruction it causes in our nation."Note: To view the signed memo click here.
Justice Department Reaches Settlement with Learning Care Group Inc. to Resolve ADA ViolationsRead the Press Release
The Justice Department today announced that it has reached a settlement agreement with Learning Care Group (LCG), the second largest for-profit child care provider in North America, headquartered in Novi, Michigan. LCG owns and operates over 900 child care centers nation-wide operating under seven brand names including, but not limited to: La Petite Academy, Childtime Learning Centers, Tutor Time Child Care/Learning Centers, The Children’s Courtyard, Montessori Unlimited, Everbrook Academy, and Creative Kids Learning Center. The matter was handled by the Justice Department’s Civil Rights Division and the United States Attorney’s Office for the Eastern District of Michigan.
The settlement agreement resolves complaints under the Americans with Disabilities Act (ADA) that LCG was discriminating against children with insulin dependent diabetes, on the basis of disability, by failing to make certain reasonable modifications for those children. Under the agreement, LCG agreed to pay $10,000 in compensatory damages to each of the eight aggrieved individuals and families identified.
LCG also agreed to evaluate each request for reasonable modification on an individualized basis, using objective evidence and current medical standards, and where appropriate, will train child care staff members to assist with routine diabetes care tasks, including the administration of insulin by pen, syringe, or pump.
“The ADA guarantees all children, including those with insulin dependent diabetes, equal access to child care centers,” said Acting Assistant Attorney General John M. Gore of the Civil Rights Division. “We applaud LCG for taking steps to enable parents of children with diabetes to enjoy the benefits of child care while knowing staff will be trained to ensure that their child is well cared for.”
“Given the critical role that dependable child care plays in a parent’s ability to work or go to school, we are proud that this settlement will ease the struggle to find quality child care for families of children with disabilities,” said United States Attorney Matthew Schneider. “The United States Attorney’s Office will continue to work to ensure the equal rights of individuals with disabilities in our community.”
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), and access the ADA website at http://www.ada.gov, or contact the U.S. Attorney’s civil rights hotline at 313-226-9151.
Indian Nationals Sentenced for Roles in Alien Harboring Scheme Involving Labor Exploitation at Nebraska MotelRead the Press Release
Vishnubhai Chaudhari, 50, and Leelabahen Chaudhari, 44, of Kimball, Nebraska, and Indian nationals unlawfully residing in the United States, were sentenced yesterday in federal court in Omaha after previously pleading guilty on Dec. 18, 2017, to alien harboring for financial gain and conspiracy to harbor an alien, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Joe Kelly for the District of Nebraska, and Special Agent in Charge Tracy Cormier of ICE Homeland Security Investigations (HSI).
U.S. District Court Judge Lauri Smith Camp sentenced both of the defendants to one year and one day in prison, followed by two years’ supervised release. The defendants also agreed to the entry of a stipulated judicial order of removal to India at the completion of their sentences and paid the victim $40,000 in restitution as a condition of their guilty pleas.
According to documents filed in court, the defendants admitted to conspiring to harbor the victim, who was an undocumented Indian national, at a Super 8 Motel in Kimball between October 2011 and February 2013. During that time, the defendants required the victim to work long hours, seven days a week at the motel, performing manual labor, including cleaning rooms, shoveling snow, and doing laundry. Although the defendants promised to pay the victim, they never did, but rather claimed to apply that amount to a debt the victim owed. The defendants further restricted the victim’s movement, isolated him, and verbally abused him. Defendant Vishnubhai Chaudhari also threatened to find the victim if he ever left the motel, and defendant Leelabahen Chaudhari regularly assaulted the victim, including on one occasion when she slapped his face several times because he had failed to clean a bathtub to her standards. The victim eventually escaped with the help of a motel guest and local law enforcement.
“Today’s sentence, and the restitution awarded to the victim, sends a clear message that the Justice Department will use its full resources to prosecute defendants like this one who motivated by their greed violate our immigration laws and exploit a vulnerable individual who lacked immigration status,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.
“This case is a reminder that labor exploitation occurs in the United States, not just overseas, and federal law targets those who profit from human trafficking and related crimes,” said U.S. Attorney Joe Kelly for the District of Nebraska. “This case is a testament that such conduct will be vigorously investigated and prosecuted in the District of Nebraska.”
“Human trafficking is the modern world’s version of enslaving another person for profit. That is what these individuals have done to this victim,” said Special Agent in Charge Tracy Cormier of HSI St. Paul. “I’m proud of the work accomplished by HSI’s special agents, our partners at the U.S. Attorney’s Office for the District of Nebraska, and the Department of Justice, who made these guilty pleas possible.”
The case was investigated by the Department of Homeland Security’s Homeland Security Investigations, and was prosecuted by Trial Attorneys Olimpia Michel and Shan Patel of the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit and Assistant U.S. Attorney Frederick D. Franklin of the District of Nebraska.
Georgia Tax Return Preparer Sentenced to Prison for Filing Fraudulent Tax ReturnRead the Press Release
An Atlanta, Georgia, woman was sentenced today to 15 months in prison for filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Byung J. Pak for the Northern District of Georgia.
According to documents and evidence presented in court, Gianna C. Liady co-owned K-1 Financial, a tax return preparation firm operating in Atlanta, Georgia. In November 2017, Liady pleaded guilty to a one-count Information charging her with assisting in the preparation and filing of a false federal income tax return. Liady prepared and filed false tax returns on behalf of K-1 Financial’s customers causing a tax loss to the United States of approximately $197,506.
In addition to the term of imprisonment, U.S. District Court Judge Eleanor L. Ross ordered Liady to serve one year of supervised release and to pay restitution in the amount of $197,506.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Pak thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Bernita Malloy and Trial Attorney Sean Beaty 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.Last of Four Defendants Sentenced to Prison in Multi-State Dog Fighting ConspiracyRead the Press Release
Four defendants were sentenced this month in federal court in Trenton, New Jersey, as a result of their roles in a multi-state dog fighting conspiracy that extended to New Mexico and Indiana. Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Craig Carpenito of the District of New Jersey made the announcement.
- Today, Lydell Harris, 32, of Vineland, New Jersey, a/k/a “Sinn,” was sentenced to serve 17 months in prison. He had pleaded guilty to one felony count of conspiracy to sponsor or exhibit a dog in an animal fighting venture, and one felony count of possessing a dog intended for use in an animal fighting venture.
- Anthony “Monte” Gaines, 37, of Vineland, New Jersey, was sentenced on March 5, 2018, to serve 42 months in prison. Gaines had pleaded guilty to two felony counts of conspiracy to buy, sell, receive, transport, deliver, and possess dogs intended for use in an animal fighting venture, and one felony count of possessing a dog intended for use in an animal fighting venture.
- Frank Nichols, 40, of Millville, New Jersey, was sentenced March 9, 2018, to serve 57 months in prison. He had pleaded guilty to one felony count of conspiracy to transport, deliver and receive dogs intended for use in an animal fighting venture, and one felony count of possessing a stolen firearm subsequent to a felony conviction.
- Pedro Cuellar, 47, of Willow Springs, Illinois, was sentenced on March 12, 2018, to serve 12 months and a day in prison. He had pleaded guilty to one felony count of conspiracy to transport, deliver, and receive dogs intended for use in an animal fighting venture.
A fifth co-defendant who has pleaded guilty will be sentenced on April 18, 2018. The court is expected to set a trial date for four additional defendants for some time this summer. Judge Anne E. Thompson sentenced Gaines and Judge Peter G. Sheridan sentenced Harris, Cuellar, and Nichols.
According to court documents filed in connection with the cases, from October 2015 through June 1, 2016, the defendants and their associates fought dogs – including to the death – and trafficked in dogs with other dog fighters in Indiana, Illinois, New Mexico, and elsewhere so that those dogs could be used in dog fights. They also maintained fighting dogs and dog fighting equipment such as dog treadmills, intravenous drug bags and lines, “breeding stands” used to immobilize female dogs, and chains weighing up to several pounds per linear foot. Agents found canine blood on the floor, walls, and ceiling of the basement of one defendant’s residence, indicating that the area was likely used as a dog fighting pit. Among other acts involved in the charges, one of the pleading defendants admitted that his dog died in his car on the way home after losing a dog fight.
“In close partnership with the U.S. Attorneys’ Offices and USDA Office of Inspector General, our Division is aggressively pursuing those who engage in illegal animal fighting ventures,” said Acting Assistant Attorney General Wood. “These sentencings demonstrate our firm commitment to prosecute those who violate federal laws banning the torture of animals in the fighting ring. As these cases also demonstrate, animal fighting ventures often involve other forms of serious criminal conduct like illegal gambling and illegal trafficking in drugs and weapons. I applaud the law enforcement officers and prosecutors who worked tirelessly to deliver justice in these cases.”
“Dog fighting is vicious and cruel. And beyond the needless suffering it inflicts on animals, it exacts a toll on local animal shelters, charitable humane organizations, and the taxpayers of New Jersey,” said U.S. Attorney Carpenito. “We applaud our local and federal partners who investigated this case and brought the offenders to justice. The message from these sentencing is simple: if you fight dogs in New Jersey, you will face prosecution and imprisonment.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” said Special Agent in Charge Bethanne M. Dinkins for U.S. Department of Agriculture’s Office of Inspector General. “Together with the Department of Justice, animal fighting is an investigative priority for USDA OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
“Homeland Security Investigations is proud to have been involved in this interagency investigation that sends a clear message that New Jersey will prosecute such offenders to the fullest extent of the law,” said Resident Agent in Charge Richard Reinhold for Cherry Hill Homeland Security Investigations. “It also points to the diverse law enforcement work that HSI performs on a daily basis.”
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, 98 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government. The Humane Society of the United States assisted with the care of the dogs seized by federal law enforcement. The government is represented by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section, and Assistant U.S. Attorney Kathleen O’Leary. The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.
Justice Department Obtains $625,000 Settlement of Sexual Harassment Lawsuit Against Two St. Louis LandlordsRead the Press Release
The Justice Department today announced a settlement with two St. Louis landlords, Hezekiah and Jameseva Webb, to resolve a lawsuit alleging that they violated the Fair Housing Act by subjecting fifteen female tenants in their rental properties to sexual harassment over the course of two decades.
The lawsuit arose from a complaint filed by a former tenant with the U.S. Department of Housing and Urban Development (HUD). The suit alleged that Hezekiah Webb, who served as property manager for the Webbs’ rental properties, sexually harassed female tenants at those properties. The United States alleged that Hezekiah Webb conditioned housing and housing benefits on female tenants’ agreement to engage in sexual acts, coerced female tenants to engage in unwelcome sexual acts, subjected female tenants to unwanted sexual touching and other unwanted sexual acts, made unwelcome sexual comments and advances to female tenants, and took adverse actions against female residents when they refused his sexual advances. The lawsuit further alleged that Jameseva Webb was liable under the Fair Housing Act because Hezekiah Webb acted as her agent when he engaged in the harassment.
Under the settlement, Hezekiah and Jameseva Webb will pay a total of $600,000 in monetary damages to fifteen former and prospective tenants who were subjected to sexual harassment, as well as a $25,000 civil penalty to the United States. The settlement also bars Hezekiah and Jameseva Webb from continuing to serve as property managers. The Webbs have advised the United States that they plan to sell their remaining five residential rental properties. If they fail to do so within 180 days, the settlement will impose certain requirements on them with regard to the remaining properties, including adoption of a sexual harassment policy, creation of tenant complaint procedures, and training on the Fair Housing Act’s requirements.
“Sexual harassment is unacceptable and intolerable, especially in the home, where landlords and property managers have the power to control so many aspects of a vulnerable tenant’s life,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department and its Sexual Harassment in Housing Initiative will continue to aggressively pursue sexual harassment in housing, even when the conduct occurred years ago.”
“No woman should have to put up with unwanted sexual advances in order to keep a roof over her head,” said Anna Maria Farías, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “Today’s settlement sends a loud and clear message that HUD and the Justice Department are committed to taking appropriate action against housing providers who deprive women of the right to feel safe and secure in their home.”
In October, the Justice Department’s Civil Rights Division announced the Sexual Harassment in Housing Initiative (SHHI). The initiative specifically seeks to increase the Department’s efforts to protect individuals from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. In 2017, the Justice Department recovered more than $1 million in damages for harassment victims. This is the first settlement announcement in 2018.
The Justice Department, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Sexual harassment is a form of discrimination prohibited by the Act. Individuals who believe that they may have been victims of housing discrimination can contact the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Fort Worth, Texas Federal Court Shuts Down Tax Return PreparerRead the Press Release
WASHINGTON – A federal court in Fort Worth, Texas has permanently barred Munah Youssef, also known as Munah Harris Youssef, and her corporation, 3M & Sons Tax and Beauty Salon LLC, from preparing tax returns for others, the Justice Department announced today. U.S. Senior District Judge Terry R. Means entered the order, which defendants consented to. The order also authorizes the United States to conduct discovery to monitor Youssef’s and her corporation’s compliance.
Youssef and 3M & Sons Tax and Beauty Salon LLC admitted the allegations in the government’s complaint filed in December 2017, including the allegation that Youssef prepared returns for her customers that included false claims of education credits, fuel tax credits, and business expenses.
The IRS has a list of steps on their website that you can take now in anticipation of filing your 2017 federal income tax return and ten tips for choosing a tax preparer. 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 information on their website about selecting 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.
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Attorney General Sessions Issues Statement on President Trump’s Plan to End the Devastating Opioid EpidemicRead the Press Release
Today Attorney General Jeff Sessions released the following statement on President Trump’s plan to end the devastating opioid epidemic:
“Drug dealers show no respect for human dignity and put their own greed ahead of the safety and even the lives of others. Drug trafficking is an inherently violent and deadly business: if you want to collect a drug debt, you collect it with the barrel of a gun. As surely as night follows day, violence and death follow drug trafficking, and murder is often a tool of drug traffickers.
“At the Department of Justice, we have made ending the drug epidemic a priority. We will continue to aggressively prosecute drug traffickers and we will use federal law to seek the death penalty wherever appropriate.
“I want to thank the President for his strong leadership on this issue and I join him in sending the message that business as usual has ended.”Massachusetts Temp Agency Operator Pleads Guilty to Employment Tax FraudRead the Press Release
A Massachusetts temporary employment agency operator pleaded guilty today in Boston federal district court to willfully failing to collect and pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to information presented in open court and filed documents, Huong Le, also known as Lynn Le, assisted Tien Chau in the operation of an employment agency that provided temporary labor to businesses in Massachusetts and New Hampshire. The agency operated under at least four different names between 2006 and 2011: Central Boston Staffing Services, Metro Boston Staffing Services, General Staffing Inc. and Kim’s Staffing Inc. Le and Chau used family members and other individuals as nominees to conceal their ownership of the business.
From April 2010 through September 2011, Le was required to collect and pay over to the IRS employment taxes relating to the agency’s workers. Le and others underreported to the agency’s payroll company the total number of employees and wages paid, which caused the payroll company to prepare and file false forms with the IRS on behalf of the employment agency.
As part of her scheme, Le attempted to hide the size of the employment agency’s workforce by paying employees cash under the table. Le also personally cashed over $6 million in checks payable to the employment agency at a check casher, caused others to cash over $4.9 million at the check casher, and caused others to incorporate the employment agency under nominee names and open bank accounts in those names. Chau previously pled guilty to conspiring to defraud the government, failing to pay over employment taxes and obstructing the internal revenue laws and is awaiting sentencing.
U.S. District Judge George A. O’Toole, Jr., scheduled sentencing for June 19. Le faces a statutory maximum sentence of five years in prison. She also faces a period of supervised release, restitution in the amount of $256,627, 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 Brittney Campbell and Shawn Noud, who are prosecuting the case. Principal Deputy Assistant Attorney General Zuckerman also thanked Deputy Chief of Investigations Anthony DiPaolo of the Insurance Fraud Bureau of Massachusetts for his agency’s assistance with the investigation.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Japanese Fiber Manufacturer to Pay $66 Million for Alleged False Claims Related to Defective Bullet Proof VestsRead the Press Release
Toyobo Co. Ltd. of Japan and its American subsidiary, Toyobo U.S.A. Inc., f/k/a Toyobo America Inc. (collectively, Toyobo), have agreed to pay $66 million to resolve claims under the False Claims Act that they sold defective Zylon fiber used in bullet proof vests that the United States purchased for federal, state, local, and tribal law enforcement agencies, the Justice Department announced today.
The settlement resolves allegations that between at least 2001 and 2005, Toyobo, the sole manufacturer of Zylon fiber, knew that Zylon degraded quickly in normal heat and humidity, and that this degradation rendered bullet proof vests containing Zylon unfit for use. The United States further alleged that Toyobo nonetheless actively marketed Zylon fiber for bullet proof vests, published misleading degradation data that understated the degradation problem, and when Second Chance Body Armor recalled some of its Zylon-containing vests in late 2003, started a public relations campaign designed to influence other body armor manufacturers to keep selling Zylon-containing vests. According to the United States, Toyobo’s actions delayed by several years the government’s efforts to determine the true extent of Zylon degradation. Finally, in August 2005, the National Institute of Justice (NIJ) completed a study of Zylon-containing vests and found that more than 50 percent of used vests could not stop bullets that they had been certified to stop. Thereafter, the NIJ decertified all Zylon-containing vests.
“Bulletproof vests are sometimes what stands between a police officer and death,” said Attorney General Jeff Sessions. “Selling material for these vests that one knows to be defective is dishonest, and risks the lives of the men and women who serve to protect us. The Department of Justice is committed to the protection of our law enforcement officers, and today’s resolution sends another clear message that we will not tolerate those who put our first responders in harm’s way.”
“This settlement sends a strong message to suppliers of products to the federal government that they must be truthful in their claims, particularly with regard to health and safety,” said Carol Fortine Ochoa, Inspector General of the General Services Administration.
This settlement is part of a larger investigation undertaken by the Civil Division of the body armor industry’s use of Zylon in body armor. The Civil Division previously recovered more than $66 million from 16 entities involved in the manufacture, distribution or sale of Zylon vests, including body armor manufacturers, weavers, international trading companies, and five individuals. The settlement announced today brings the Division’s overall recoveries to over $132 million. The United States still has lawsuits pending against Richard Davis, the former chief executive of Second Chance, and Honeywell International Inc.
The settlement announced today resolves allegations filed in two lawsuits, one brought by the United States and the other filed by Aaron Westrick, Ph.D., a law enforcement officer formerly employed by Second Chance who is now a Criminal Justice professor at Lake Superior University. Dr. Westrick’s lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in 2005 in Dr. Westrick’s case. Dr. Westrick will receive $5,775,000.
This case was handled by the Justice Department’s Civil Division, along with the General Services Administration, Office of the Inspector General; the Department of Commerce, Office of Inspector General; the Defense Criminal Investigative Service; the U.S. Army Criminal Investigative Command; the Department of the Treasury, Office of Inspector General for Tax Administration; the Air Force Office of Special Investigations; the Department of Energy, Office of the Inspector General; and the Defense Contracting Audit Agency.
The claims settled by this agreement are allegations only; there has been no determination of liability. The lawsuits resolved by the settlement are captioned United States ex rel. Westrick v. Second Chance Body Armor, et al., No. 04-0280 (PLF) (D.D.C.) and United States v. Toyobo Co. Ltd., et al., No. 07-1144 (PLF) (D.D.C.).
Attorney General Sessions Provides Further Support for Local Law Enforcement with Launch of New Collaborative Reform Initiative Technical Assistance CenterRead the Press Release
Attorney General Jeff Sessions today announced the launch of the Collaborative Reform Initiative Technical Assistance Center (CRI-TAC) during the International Association of Chiefs of Police (IACP) Division Midyear Conference in Nashville, Tennessee.
This follows the Attorney General’s announcement in September of 2017 that the Office of Community Oriented Policing Services would shift to better align the program to support local law enforcement consistent with the original intent of the authorizing statute. Consistent with that, the CRI-TAC brings together a coalition of the nation’s top public safety organizations under the leadership of the IACP to provide tailored technical assistance and a field driven approach to local policing agencies through a $7 million award from the Department of Justice’s Office of Community Oriented Policing Services (COPS Office).
"Better training and the more sophisticated policing strategies were key reasons for 20 years of declining crime in America," Attorney General Sessions said. "I believe that continuing to advance our technical sophistication can help us reduce crime once again, and that's why we're investing in CRI-TAC. Improving access to training for our state and local law enforcement partners will mean better policing and a safer America."
Since the December 2017 announcement of the CRI-TAC award, the IACP and its partners have started planning technical assistance delivery to support three law enforcement agencies around their unique challenges. Those agencies include the Cedar Rapids (IA) Police Department, the McNeese State University (LA) Police Department, and the Knoxville (TN) Police Department, which has asked for technical assistance around effective gun violence reduction and prevention initiatives.
For the first time ever, the following law enforcement stakeholder organizations – and their over 420,000 members – are working together to create a center of resources and subject matter expertise explicitly focusing on the needs of local policing agencies:
International Association of Chiefs of Police (IACP)
- "The IACP is excited to work alongside eight leading law enforcement leadership and labor organizations to build and deliver this comprehensive technical assistance center that can support the diverse agencies and communities around the U.S. with customized solutions for the field, by the field," said IACP President Louis M. Dekmar, Chief of the LaGrange, Georgia, Police Department.
Federal Bureau of Investigation National Academy Associates (FBINAA)
- “The vision of the FBI National Academy Associates is to provide continuous development and resources to the world's strongest law enforcement leadership network,” said Howard Cook, Executive Director, FBI National Academy Associates. “The Collaborative Reform Initiative for Technical Assistance Center (CRI-TAC) will allow us to provide cutting-edge and innovative education, training, and resources to law enforcement executives throughout the country. By focusing on the most relative and important 21st century issues, we will be able to continue to impact communities by providing and promoting law enforcement leadership and enhancing the trust our citizens have bestowed on us.”
Fraternal Order of Police (FOP)
- “The National Fraternal Order of Police is honored to be a partnering member of this initiative,” said Chuck Canterbury, National President of the Fraternal Order of Police. “We view our participation as critical to the delivery of quality training opportunities to front line officers who have dedicated their lives to the protection of the public under some of the most adverse conditions we have seen in recent times.”
International Association of Campus Law Enforcement Administrators (IACLEA)
- “IACLEA is honored to be a part of this vital initiative,” said IACLEA President David Bousquet. “The input of campus public safety experts will enhance the project development and, ultimately, the technical assistance center. We look forward to rolling up our sleeves and working with our project partners.”
International Association of Directors of Law Enforcement Standards and Training (IADLEST)
- “IADLEST is proud to be a part of this project and to be partnering with so many other great organizations dedicated to increasing public safety and the effectiveness of community policing and reducing crime,” said Daniel Zivkovich, President of IADLEST. “We are very appreciative of the IACP for spearheading this initiative and allowing IADLEST to be a part of it. Being the only membership organization that represents POST agencies and Academy Directors nationwide, we believe that IADLEST is an integral partner in this initiative.”
Major Cities Chiefs Association (MCCA)
- “The Major Cities Chiefs Association looks forward to the ongoing partnership with the IACP and each program partner in the Collaborative Reform Initiative,” said Montgomery County, Maryland Police Chief Tom Manger. “The expertise of our combined membership will help provide solutions to some of the most challenging problems facing law enforcement in our commitment to service throughout our communities.”
National Association of Women Law Enforcement Executives (NAWLEE)
- “The National Association of Women Law Enforcement Executives (NAWLEE) is honored to be part of the rich coalition of participants,” said Valerie Cunningham, NAWLEE President. “We look forward to offering up the collective experience of our membership and subject matter expertise to deliver tailored resources to agencies looking for assistance.”
National Organization of Black Law Enforcement Executives (NOBLE)
- “The National Organization of Black Law Enforcement Executives (NOBLE) is very pleased to join the IACP and others in delivering Collaborative Reform Initiative technical assistance to law enforcement agencies across the nation,” said NOBLE President Clarence E. Cox, III. “We look forward to playing an integral role in this much needed effort which focuses on developing and executing a national law enforcement technical assistance program at all levels of law enforcement. The technical assistance offerings will include everything from Active Shooter Responses to Police Responses to Mass Demonstrations of which NOBLE is well versed.”
National Tactical Officers Association (NTOA)
- “For 35 years, the National Tactical Officers Association (NTOA) has been dedicated to enhancing the performance and professional status of law enforcement personnel by providing a credible and proven training resource, as well as a forum for the development of tactics and information exchange. We are excited to be a partner in the CRI-TAC and assist those agencies in need of our services.” Thor Eells, NTOA Executive Director.
For more information about the CRI-TA program, visit the COPS Office website https://cops.usdoj.gov/collaborativereform.
Law enforcement agencies seeking additional information or interested in submitting a voluntary request to participate in CRI-TAC should visit www.collaborativereform.org.
The COPS Office awards grants to hire community policing officers, develop and test innovative policing strategies, and provide training and technical assistance to community members, local government leaders, and all levels of law enforcement. Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.Tulsa Man Sentenced to 13 ½ Years in Prison for CarjackingRead the Press Release
United States Attorney Trent Shores announced that Joshua Wofford, 33, of Tulsa, was sentenced today by United States District Judge John Dowdell to serve 162 months in federal prison. A jury previously found Wofford guilty of violating the federal carjacking statute. The jury acquitted Wofford of a related firearm count. After release from prison, Wofford must serve three years on supervised release. Parole has been abolished in the federal system.
On June 4, 2017, Wofford took a Chevrolet truck from a mother and her three children while they were parked in a convenience store parking lot in Tulsa, Oklahoma. He then led Tulsa Police Officers on a high speed chase and hid in a wooded area until he was captured by Tulsa Police Officers.
United States Attorney Shores stated, “Violent crime can come with big time in the federal system. Carjackers should be on notice that federal prosecutors are working side by side with the Tulsa Police Department and ATF to protect our community. A 13 1/2 year sentence sends a strong message to any would be violent criminal.”
The Tulsa Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives jointly investigated this matter. Assistant United States Attorney Eric O. Johnston represented the United States at the jury trial.
Three Miami-Area Home Health Agency Owners Charged for Role in Health Care Fraud SchemeRead the Press Release
Three Miami, Florida-area home health agency owners were charged in an indictment unsealed yesterday for their alleged participation in a health care fraud scheme involving a now-defunct home health agency in Miami.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Ailin Consuelo Rodriguez Sigler, 39; Zoila C. Rios, 57; and Tomas A. Rodriguez, 66, were charged in an indictment filed in the Southern District of Florida with one count of conspiracy to commit health care fraud and wire fraud, and three counts of health care fraud. Sigler, Rios and Rodriguez were arrested yesterday morning and appeared yesterday afternoon before U.S. Magistrate Judge Alicia M. Otazo-Reyes.
The indictment alleges that from approximately January 2011 through November 2014, Sigler, Rios and Rodriguez, owners of Florida Patient Care Corp. of Miami, Florida, were involved in a fraudulent scheme whereby they agreed with the owners and operators of multiple home health therapy staffing companies and others to bill Medicare for services that were medically unnecessary, not eligible for Medicare reimbursement, or were never provided.
According to the indictment, Sigler, Rios, Rodriguez and their co-conspirators allegedly caused the submission of false and fraudulent claims to Medicare for home health therapy care, and physical and occupational therapy services purportedly provided by Florida Patient Care Corp.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Fraud Section Trial Attorney Yisel Valdes is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Statement of John C. Anderson, United States Attorney for the District of New Mexico, Before the Senate Committee on Indian AffairsRead the Press Release
Chairman Hoeven, Vice-Chairman Udall, and Members of the Committee:
Thank you for inviting us today to discuss this critical issue and the Department of Justice’s (the Department) efforts to support Native communities dealing with the devastating aftermath of the opioid epidemic. The Department has been uncompromising in our commitment to combatting drug abuse and drug crimes, particularly opioids, in Indian country and across the nation.
In my district, New Mexico, the opioid crisis in Indian Country is particularly acute. Despite its staggering natural beauty, northern New Mexico, and Espanola, New Mexico in particular, has one of the highest opioid overdose death rates in the country. For decades, Espanola has had a severe heroin problem. And as you may know, Espanola is surrounded by Indian reservations. Many New Mexico Indian Pueblos, including the Pueblos of Santa Clara, Ohkay Owingeh, San Ildefonso, Picuris, Pojoaque, Nambe and Tesuque are all within a short distance of the Espanola area. The opioid epidemic knows no boundaries, and so our Pueblos are equally affected by heroin and prescription opioids; individuals and communities alike continue to be plagued by the opioid scourge and its secondary effects.
At a recent consultation in New Mexico, one Pueblo Governor shared photographs of the parking lot of their casino. The photos revealed discarded needles, syringes and other drug paraphernalia scattered about the casino parking lot.
At the same consultation, a Pueblo Chief of Police emotionally described losing a brother to a heroin overdose and a sister to a prescription opioid overdose. The Chief of Police explained that the drug epidemic is dire in Northern New Mexico and that something needs to be done to address the problem.
The catastrophic impact that opioid abuse can have at every level of a community, from family units to infrastructure and economic stability, demands our best efforts to put forth effective and sustainable support to communities in crisis. The Department has developed a multi-faceted response to addressing the threat and the impact of opioid abuse. Our approach in Indian country is based on the belief that the Tribes are in the best position to identify solutions to problems in their communities. We have sought to develop resources and initiatives that rely on partnership with the Tribes and are continually interested in hearing from our Tribal and federal partners as we adjust our efforts to better meet the needs of Native communities.
An important element of the Department’s support is in providing opportunities for funding. In fiscal year 2017, the Department awarded nearly $59 million to strengthen drug court programs and combat the opioid epidemic. The Office of Justice Programs (OJP) administers the Department’s “Comprehensive Opioid Abuse Program.” The goals of the Comprehensive Opioid Abuse Program are twofold: First, the program aims to reduce opioid misuse and the number of overdose fatalities. Second, the program supports the implementation, enhancement, and proactive use of prescription drug monitoring programs (PDMPs) to support clinical decision-making and prevent the misuse and diversion of controlled substances. Tribes are eligible to apply for a variety of funding opportunities under this program. As an example of recent awards under this program, in Fiscal Year 2017, the Seneca Nation Peacemakers Court was awarded funds to create a community-driven, culturally competent diversion project aimed at helping Native American opioid users. The Port Gamble S’Klallam Tribe was awarded funds in Fiscal Year 2017 to support drug courts and programs that support veterans. The Department will continue to offer these opportunities to Tribes going forward.
The Department understands that effective coordination among federal agencies is crucial to ensuring our efforts are successful. We have participated in the High-Intensity Drug Trafficking Areas (HIDTA) program, funded through the Office of National Drug Control Policy, for many years now. The HIDTA program increases collaboration and information sharing between Tribal law enforcement and federal, state, and local agencies to improve investigation and interdiction in Indian country. As the Department continues to participate in the HIDTA program, our law enforcement agencies, particularly the Drug Enforcement Administration (DEA), have been working to build stronger relationships with other law enforcement agencies and service providers active in Indian country so that we are able to adjust our Task Force presence in Indian country most effectively.
The Indian Country Law Enforcement Coordination Working Group, co-chaired by the Department of Justice and the Bureau of Indian Affairs (BIA) at the Department of the Interior, has become important to enhancing inter-agency federal law enforcement coordination in tribal communities. The group includes representatives from 13 federal law enforcement agencies and has focused heavily on several aspects of the opioid epidemic including proliferation, identifying top challenges to law enforcement, and coordinating responses. We will continue to use this working group to strengthen our coordinated efforts. For example, trafficking through the mail is a significant concern and we intend to use this working group as a forum to develop better ways to stop the movement of opioids through the postal service.
We recognize that the crisis requires more than a law enforcement response, so our efforts to coordinate go beyond law enforcement. For example, the Department is working closely with the Indian Health Service (IHS) of the Department of Health and Human Services to ensure that other federal agencies are aware of updated Prescription Drug Monitoring Program (PDMP) protocols in IHS facilities. The updated protocols have an impact on how some drug crimes are investigated and prosecuted, and on efforts to introduce safeguards against opioid abuse. Additionally, we have developed a number of training opportunities to better equip law enforcement and service providers working in Indian country to address the drug crimes and the familial and community impacts of opioid abuse. The Department has presented recent trainings, often in coordination with BIA, on opioid trends, investigative techniques, drug handling precautions regarding opioids, naloxone use, and indicators that opioids are present in a community. Other training is available on violent crime associated with opioids, prescription drug diversion, and investigating and prosecuting medical professionals and others involved in distributing prescription medications outside the scope of legitimate medical practice. These training opportunities are available to Tribal law enforcement and, in some cases, entirely geared for a Tribal audience. The Department is currently working with BIA on a new opportunity tentatively slated for this summer that will bring Tribal law enforcement representatives together with a number of federal law enforcement agencies to train on a wide range of drug-related topics.
Community outreach is another important aspect of our approach to this issue. The DEA has conducted a prolonged community outreach effort in Indian country to educate Tribal leaders and citizens on opioids and other drugs. Additionally, on October 28, 2017, the Department and BIA collaborated on the most recent Prescription Drug Take Back Day, which is a nationwide program that has also allowed the successful collaboration between BIA and DEA. This initiative provided a safe, convenient, and responsible means of disposing prescription drugs, while also educating Native communities on the potential for opioid abuse. Over 115 Tribal communities participated; we intend to repeat this initiative and expand participation in the future.
Improved information sharing plays a crucial role in any law enforcement effort, even more so in the context of opioids as we all work to get ahead of this terrible epidemic. The Tribal Access Program for National Crime Information (TAP) is an effective tool for participating Tribes to track and contribute data on opioid-related crimes and to perform required background checks. TAP assists Tribes by providing a means of access to national crime databases maintained by the FBI Criminal Justice Information Services (CJIS) Division for both criminal justice and civil background check purposes. This has been an especially important tool for performing checks on those who have regular contact with children in Indian country, including schools and foster care. Service providers in Indian country carry much of the burden of healing communities in the wake of opioid abuse, so we believe TAP plays an equally necessary role in ensuring safe providers as it does in sharing important law enforcement information.
The use of data analytics to combat the opioid crisis is among the new tactics that are under development Department-wide. Attorney General Sessions formed the Opioid Fraud and Abuse Detection Unit to utilize data analytics, such as distribution and inventory figures, to identify patterns, trends, and statistical outliers that can be developed into targeted law enforcement operations. As we better understand the data across the country we will be able to better understand patterns and trends in Indian country.
Our goal is clear: we must continue working in partnership with Tribal, federal, state, and local partners to respond to the opioid epidemic and to support communities that are affected by the crisis. We are committed to putting forth our best efforts in this joint undertaking. We appreciate this committee’s focus on this issue and look forward to working with you going forward. Thank you again for the opportunity to participate today.
Texas Tax Return Preparer Pleads Guilty to Tax and Identity Theft CrimesRead the Press Release
A Killeen, Texas, resident pleaded guilty today to aiding and assisting in the preparation and filing of a false tax return and aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Shermin Marshall devised a scheme to file false federal income tax returns on behalf of his clients. Marshall admitted that he falsified specific items on his clients’ tax returns in order to fraudulently increase their tax refunds. Marshall further admitted that he directed clients’ refunds to be deposited into financial accounts that he controlled and, unbeknownst to his clients, Marshall stole a portion of those refunds. Marshall also admitted that to receive some of the fraudulent refunds he opened financial accounts in his clients’ names, without their permission. Marshall admitted that his actions caused a tax loss of $397,367.
Marshall faces a maximum statutory penalty of up to 36 months in prison on the aiding and assisting count, plus a two-year mandatory sentence for the aggravated identity theft count. He also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Robert A. Kemins and David Zisserson, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Department of Justice to Hold Roundtable on Criminal Antitrust ComplianceRead the Press Release
On April 9, the Department of Justice’s Antitrust Division will hold a public roundtable discussion to explore the issue of corporate antitrust compliance and its implications for criminal antitrust enforcement policy.
The roundtable will provide a forum for the Antitrust Division to engage with inside and outside corporate counsel, foreign antitrust enforcers, international organization representatives, and other interested parties on the topic of antitrust compliance. Participants will discuss the role that antitrust compliance programs play in preventing and detecting antitrust violations, and ways to further promote corporate antitrust compliance. The format of the program will be a series of panel discussions with featured speakers. Audience participation in the discussions will be encouraged.
The Roundtable will take place in the Great Hall of the Robert F. Kennedy Department of Justice Building, 950 Pennsylvania Avenue, NW, Washington, DC, from 1:00 p.m. to 5:00 p.m. EDT. The agenda can be found here.
“Corporate compliance is key to the Antitrust Division’s ultimate goals of preventing and uncovering criminal antitrust violations and protecting consumers and small businesses,” said Assistant Attorney General Makan Delrahim. “The Division values continued engagement with corporate counsel, the antitrust bar, and other stakeholders on this important topic.”
The roundtable will be open to the public. Individuals wishing to attend must register on the Department’s website. For more information or to submit questions or comments, please send an email to [email protected].
Reasonable accommodations for people with disabilities are available upon request. Requests should be submitted via email to Jeremy Edwards in the Office of Public Affairs at [email protected] or by calling 202-307-2016. Requests should be made in advance. Please include a detailed description of the accommodation needed and provide contact information.
Department of Justice, EPA Reach Agreement with Two Idaho Mining Companies to Secure Wastewater Treatment and Remove a Barrier to New Mining OperationsRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced a settlement with the owner of the Bunker Hill Mine, Placer Mining Company, Inc. (Placer Mining), resolving Placer Mining’s cleanup liability in Idaho’s northern panhandle. The Department of Justice and EPA have concurrently reached a settlement with the lessee of the Bunker Hill Mine, Bunker Hill Mining Corp. (BHMC), removing a barrier to new operations at the Mine.
The settlement:- Protects area waterways and ecosystems, through the continued treatment of 1,300 gallons of acid mine drainage discharged per minute;
- Reduces the financial burden on federal taxpayers by shifting the responsibility for future wastewater treatment to the new operator;
- Paves the way for a new mining enterprise, with the prospect of more jobs in Idaho’s Silver Valley;
- Offers more regulatory certainty for current and future mine owners/operators; and
- Resolves close to three decades of litigation surrounding the cleanup of contaminated mine waste in Idaho’s Silver Valley.
“Today’s settlement ends years of litigation, recoups for taxpayers millions of dollars in cleanup costs, and ensures a better environment for the people of Idaho, while also spurring economic growth and job creation in the northern panhandle region,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “We are pleased to work with our partners at EPA to bring this longstanding matter to a good resolution.”
"Through this settlement, EPA is clearing the way for a new operator to resume mining, bringing jobs back to the community, while also securing the ongoing cleanup of contaminated water and recovery of EPA's past cleanup costs," said EPA Administrator Scott Pruitt. "EPA is delivering on its Superfund Task Force commitments."
As part of the settlement, BHMC will pay EPA up to $20 million, on behalf of Placer Mining, in satisfaction of EPA’s past costs claim against Placer Mining. Placer Mining also agrees drop its “takings” case against the United States. This settlement of claims between EPA and Placer Mining also enables BHMC to return the Bunker Hill Mine to production after a hiatus of more than two decades. For nearly a century, the Bunker Hill Mine was one of the most productive mines in the Coeur d’Alene Mining District. As part of the agreement, BHMC has agreed to pay for future treatment of acid mine drainage coming from the mine. BHMC has also agreed to undertake various maintenance and monitoring tasks to help ensure previous cleanup work at the Superfund Site remains protective and is not adversely impacted by new mining operations.
By innovatively approaching this complex situation involving multiple parties and interests, EPA and the Department of Justice addressed a host of complex legal and technical issues that arise when a third party locates a business within a Superfund site where response actions and litigation are pending. These issues were resolved through a combination of a consent decree for cost recovery and a prospective purchaser agreement to govern the performance of ongoing response actions.
The Bunker Hill Mine sits amidst the Bunker Hill Mining and Metallurgical Complex Superfund Site (https://go.usa.gov/xnm9K0), running next to Interstate 90 from near the Montana state line, then along the Coeur d’Alene River, and reaching into the state of Washington. The historic Jesuit Cataldo Mission is also within the Site, which has been home to the Coeur d’Alene Tribe for millennia.
EPA first listed the Site on its National Priorities List (NPL) in 1983. Soon after being added to the NPL, cleanup of mine waste contamination in surface water, groundwater, soil, and sediment began across the Site. EPA and the state of Idaho jointly lead the project. Currently, EPA and the state of Idaho are coordinating approximately $25-$30 million in cleanup projects annually.
The site-wide cleanup was spurred by the toxic side effects of widespread lead (and other metals) contamination which began showing up in the 1970s in routine blood lead screenings for children who lived in the area. Some of the highest blood lead readings ever documented in North America were measured in local children in the 1970s and 1980s. Following years of a comprehensive approach that includes a large-scale cleanup, outreach, education, and health interventions, local blood lead levels are now within the national average.
Funding from this settlement will help reimburse EPA for past costs incurred related to the Central Treatment Plant (CTP) in Kellogg, Idaho. The CTP has been treating acid mine drainage from the Bunker Hill Mine since 1995. The settlement agreement is structured to recover up to 82% of the past costs for water treatment and result in payment for all future water treatment costs.
The consent decree, lodged in the District Court of Idaho, is subject to a 30-day federal public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
For more information about the settlement, please visit: https://www.epa.gov/enforcement/case-summary-third-party-settlement-bunker-hill-site-secure-wastewater-treatment-and.
Defendant Sentenced in Multimillion Dollar Prize Promotion Scams Targeting Elderly VictimsRead the Press Release
An individual who ran multimillion dollar prize promotion scams was sentenced on March 12, 2018, to serve 87 months in prison by a federal judge in Las Vegas, Nevada, the Department of Justice announced.
Glen Burke, 58, of Las Vegas, was sentenced to 87 months in prison, followed by three years of supervised release. U.S. District Judge Jennifer A. Dorsey also ordered Burke to pay $2,785,508.36 in restitution, reflecting the consumer loss from one of Burke’s schemes.
Burke pleaded guilty in December 2017 to criminal contempt of court and conspiracy charges arising from his operation of two predatory schemes that defrauded thousands of victims, many of whom were elderly, out of more than $20 million. Burke conducted those fraudulent campaigns in violation of a 1998 court order obtained by the Federal Trade Commission (FTC) permanently banning him from telemarketing and making misrepresentations to consumers. A co-defendant, Michael Rossi, 52, also of Las Vegas, also pleaded guilty in connection with one of Burke’s schemes. Rossi is scheduled to be sentenced on June 25, 2018.
“This case exemplifies the Department’s commitment to halt schemes that target seniors, which the Attorney General announced in an historic elder fraud sweep a few weeks ago,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “We are sending a clear message: Perpetrators of telemarketing fraud will be prosecuted and law enforcement will not stop until fraudulent mass mailing practices are halted.”
Burke pleaded guilty to criminal contempt of court for violating a court order prohibiting him from making misrepresentations to consumers. The charge stemmed from Burke’s operation of a mass-mailing fraud scheme that misled consumers into believing that they had won large cash prizes, often millions of dollars. Burke specifically mailed consumers solicitations that used fake names and, in many cases, looked like they came from law firms or financial institutions, advising consumers to pay a fee – usually $20 to $30 – to claim their promised winnings. Once consumers paid, however, Burke never sent any consumer a promised prize.
Burke, along with Rossi, also pleaded guilty to conspiracy to commit mail and wire fraud for running a fraudulent telemarketing operation. Telemarketers working for Burke and Rossi falsely told victims that they had won one of five valuable prizes, typically: a Chevy Camaro; a Boston Whaler boat; a diamond-and-sapphire bracelet; $3,000 cash; or a cruise that could be exchanged for $2,300. To claim the prize, consumers were told to pay hundreds, or in some cases thousands, of dollars. Once they paid, victims received a nearly worthless piece of costume jewelry or nothing at all.
In January 2013, the FTC filed a civil contempt case against Burke for violating the 1998 court order. The district court found Burke in civil contempt and ordered him to pay contempt sanctions of over $20 million, reflecting consumer loss from both the telemarketing and mass-mailing schemes.
Acting Assistant Attorney General Readler commended the investigative efforts of the U.S. Postal Inspection Service and thanked the FTC for its valuable assistance. The case was prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Consumer Protection Branch of the Department of Justice’s Civil Division and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada.
Attorney General Sessions Appoints Six Additional Members to U.S. Attorney Advisory CommitteeRead the Press Release
Attorney General Jeff Sessions announced the appointment of six new U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC), joining the nine members announced on November 13, 2017. The AGAC was created in 1973 and reports to the Attorney General through the Deputy Attorney General. It represents the U.S. Attorneys and provides advice and counsel to the Attorney General on matters of policy, procedure, and management affecting the Offices of the U.S. Attorneys.
The new appointees are U.S. Attorney for the Northern District of Texas Erin Nealy Cox; U.S. Attorney for the Eastern District of New York Richard P. Donoghue; U.S. Attorney for the Middle District of Alabama Louis V. Franklin, Sr.; U.S. Attorney for the Northern District of Illinois John R. Lausch, Jr.; U.S. Attorney for the District of Massachusetts Andrew E. Lelling; and U.S. Attorney for the District of Delaware David C. Weiss.
“I am pleased to announce these new members of the Attorney General’s Advisory Committee. The Advisory Committee plays an important role in helping us achieve the Department of Justice’s goals, including to reduce violent crime, combat transnational criminal organizations, secure our southern border, end the devastating opioid crisis, and enforce the rule of law,” said Attorney General Sessions.
A brief biography of each new member is below:
Erin Nealy Cox
The Senate confirmed Erin Nealy Cox’s appointment as United States Attorney for the Northern District of Texas in November 2017. Prior to this appointment, Ms. Nealy Cox was a Senior Advisor at McKinsey & Co in the cybersecurity and risk practice and on the Board of Directors of Sally Beauty Holdings, a large retailer on the NYSE. From 1999 to 2008, Ms. Nealy Cox served as an Assistant United States Attorney in the Northern District of Texas, where she prosecuted cyber crimes, white collar crimes, and general crimes. In 2004 and 2005, she served at Main Justice as Chief of Staff and Senior Counsel to the Assistant Attorney General in the Office of Legal Policy. Ms. Nealy Cox also previously worked at Stroz Friedberg, a cybersecurity and investigations consulting firm. Ms. Nealy Cox clerked for the Honorable Henry A. Politz, when he served as Chief Judge of the Fifth Circuit Court of Appeals, and the Honorable Barefoot Sanders, United States District Judge in the Northern District of Texas. She received a B.B.A in Finance from the McCombs School of Business at the University of Texas at Austin and her J.D., magna cum laude, from Southern Methodist University Dedman School of Law.
Richard P. Donoghue
On January 5, 2018, the Attorney General appointed Richard P. Donoghue to be interim United States Attorney for the Eastern District of New York. Prior to this appointment, Mr. Donoghue served as the Senior Vice President and Chief Counsel for CA Technologies based in New York. From 2000 to 2011, Mr. Donoghue worked in the United States Attorney’s Office for the Eastern District of New York in various roles, including Criminal Chief and Deputy Criminal Chief. Mr. Donoghue received his B.A., cum laude, from Hofstra University and his J.D., from St. John’s University School of Law.
Louis V. Franklin, Sr.
The Senate confirmed Louis V. Franklin, Sr. to be United States Attorney for the Middle District of Alabama in September 2017. Mr. Franklin has served in the United States Attorney’s Office for the Middle District of Alabama for nearly 27 years, including as Criminal Chief for almost 16 years. Mr. Franklin served as an Assistant United States Attorney from 1990 to 1996 and from 1998 to 2001. From 1996 to 1998, Mr. Franklin was an associate at Sirote and Permutt. Mr. Franklin began his career as a staff attorney at the Legal Services Corporation of Alabama from 1987 to 1990. Mr. Franklin received his B.A. from the University of Alabama, an M.S. from Auburn University at Montgomery, and his J.D. from Howard University School of Law.
John R. Lausch, Jr.
The Senate confirmed John R. Lausch, Jr.’s appointment as United States Attorney for the Northern District of Illinois in November 2017. Prior to his appointment, Mr. Lausch was a partner at Kirkland & Ellis LLP. Previously, he served as an Assistant United States Attorney in the Northern District of Illinois from 1999 to 2010. During his time in the U.S. Attorney’s Office, Mr. Lausch served as a Deputy Chief in the Narcotics and Gangs Section for several years, where he helped lead the District’s Anti-Gang and Project Safe Neighborhoods programs. Mr. Lausch clerked for the Honorable Michael S. Kanne of the United States Court of Appeals for the Seventh Circuit. He received his A.B., cum laude, from Harvard University and his J.D., cum laude, from Northwestern University School of Law.
Andrew E. Lelling
The Senate confirmed Andrew E. Lelling’s appointment as United States Attorney for the District of Massachusetts in December 2017. Prior to this appointment, Mr. Lelling was the senior litigation counsel for the United States Attorney’s Office for the District of Massachusetts and has worked in that office for 12 years, prosecuting white collar crime and international drug trafficking, among other offenses. Mr. Lelling also served as an Assistant United States Attorney in the Eastern District of Virginia. He previously served as counsel to the Assistant Attorney General at the Department of Justice Civil Rights Division. Mr. Lelling clerked for the Honorable B. Avant Edenfield of the United States District Court for the Southern District of Georgia. He received his B.A., magna cum laude, from the State University of New York at Binghamton and his J.D., cum laude, from the University of Pennsylvania Law School.
David C. Weiss
David C. Weiss’s nomination to be United States Attorney for the District of Delaware was confirmed in February. Mr. Weiss previously served as the Acting United States Attorney for the District of Delaware from 2009 to 2011 and 2017 to 2018, and as the First Assistant United States Attorney from 2007 to 2017. Prior to serving in these positions, Mr. Weiss was an Assistant United States Attorney from 1986 to 1989. Mr. Weiss clerked for the Honorable Andrew D. Christie of the Delaware Supreme Court. Mr. Weiss received his B.S. from Washington University and his J.D. from Widener University School of Law.Attorney General Sessions Announces New Actions to Improve School Safety and Better Enforce Existing Gun LawsRead the Press Release
Today, Attorney General Jeff Sessions announced several steps in support of President Trump’s plan to prevent violence in schools. Through these efforts, the Department of Justice is taking immediate action to protect our schools, better enforce our gun laws, support law enforcement, strengthen the firearms background check system, and improve federal law enforcement’s response to tips. In making the announcement, Attorney General Sessions said:
"No child should have to fear going to school or walking the streets of their neighborhood. Today, I am directing the Department of Justice to take a number of new steps that will help make schools and the American people safer from the threat of gun violence.”
“We are increasing the number of school resource officers, improving background checks and more aggressively prosecuting those who illegally attempt to purchase a firearm, and reviewing and enhancing the way our law enforcement agencies respond to tips from the public. Under my tenure as Attorney General, we have already increased federal gun prosecutions to a 10-year high—and we are just getting started. With these new measures in place, we are better positioned to disarm criminals and protect the law-abiding people of this country."
The Attorney General announced the following actions:
Improvements to School Safety
- Hire More School Resource Officers. The Department will help state, local and tribal law enforcement agencies hire more School Resource Officers (SROs). The COPS Hiring Program—a competitive grant that helps states and local communities hire more police officers—will prioritize applicants who intend to use the grants for SROs.
- Provide Support For Firearms and Situational Awareness Training to School and Law Enforcement Personnel. By leveraging existing assistance programs, the Department will be able to empower state and local firearms and situational awareness training for school personnel. The Department will continue to provide emergency and crisis training to state, local, and tribal law enforcement through its National Training and Technical Assistance Center and VALOR initiative.
- Fully Participate in the Federal Commission on School Safety. The Department of Justice is committed to working with our federal partners to study, evaluate, and make recommendations on how we can improve school safety.
Aggressively Prosecuting Federal Gun Laws
- Bump Stocks. The Department of Justice is supporting President Trump’s absolute commitment to ensuring the safety and security of every American by submitting to the Office of Management and Budget a proposed regulation to clarify that bump stock type devices are machine guns under federal law, which will effectively ban the manufacture, sale or possession of these devices.
- Swift and aggressive “Lie-and-Try” Prosecutions. Attorney General Sessions has ordered federal prosecutors to swiftly and aggressively prosecute appropriate cases against people who are prohibited from having firearms, and who lie in an attempt to thwart the federal background check system.
- Continue to Increase Violent Crime Prosecutions. In 2017 the Department made some great strides under Attorney General Sessions' leadership, including the launch of the enhanced Project Safe Neighborhoods initiative, which brings together all levels of law enforcement and the communities they serve to develop effective, locally based strategies to reduce violent crime. Under this direction, the Department prosecuted more defendants on federal firearms charges than we have in a decade, and more defendants for violent crime than we have in over 25 years – since the Department started tracking a “violent crime” category. Attorney General Sessions is dedicated to ensuring even more violent crime prosecutions, including firearms prosecutions, in 2018.
Supporting Law Enforcement
- Providing Emergency Funding for the Costs of Parkland, Florida Law Enforcement Response. The Department of Justice will provide $1 million in emergency grant funding to the State of Florida to pass through to Broward County and other responding jurisdictions’ law enforcement components. The emergency funding is intended to defray the law enforcement overtime costs related to the response and subsequent crime scene investigation of the tragic shooting at Marjory Stoneman Douglas High School.
Improving Information Available for Firearm Background Checks
- Holding Federal Agencies Accountable. Federal agencies are required by law to report to the National Instant Criminal Background Check System (NICS) relevant records relating to individuals prohibited from possessing a firearm under federal law. Pursuant to his authority, Attorney General Sessions is calling on all relevant agencies to certify within 45 days that they are in full compliance with the law or have a plan to become fully compliant.
- Strengthening Partnerships with State and Local Law Enforcement. The Attorney General is calling on governors and state Attorneys General to improve the reporting of state and local criminal justice data, and other information accessed by the firearms background check system. Because the FBI has identified “missing dispositions” – or arrest records that lack a final disposition – as a significant issue, the Attorney General will provide every state with their respective level of disposition completion with the goal of urging those states who do not have an adequate level of reporting to focus on this issue and improve their reporting.
- Attorney General Sessions has also directed the FBI to identify local jurisdictions that are not reporting arrests to their state repositories as well as jurisdictions that are not providing all of their records identifying persons prohibited from possessing firearms for mental health reasons.
- Improving Access to State Mental Health and Domestic Violence Records. Through the National Criminal History Improvement Program (NCHIP) and NICS Act Records Improvement Program (NARIP) grants, the Department will help states provide more complete, timely, and accurate information to databases accessed by the firearms background check system. The Attorney General has ordered that priority be given to projects that improve accessibility of criminal history records, domestic violence convictions, and information on persons who are prohibited from possessing firearms for mental-health related reasons.
Enhancements to Department Response to Public Information
- Reviewing and reforming the process for handling tips. Attorney General Sessions has ordered an immediate review of the Department’s handling of tips from the public so that they receive prompt and effective responses, especially when doing so could prevent violence.
Technical Assistance to States
- Extreme Risk Protection Orders. The Department stands ready to assist States, at their request, on establishing and implementing extreme risk protection orders.
Click here to view the Attorney General’s memo to the Director of the FBI on Improving State Information sharing.
Click here to view the Attorney General’s memo to US Attorneys on Enforcing Federal Law Against Prohibited Persons Attempting to Purchase Firearms.
Click here to view the Executive Summary of the report provided to the Attorney General in response to his November 22, 2017 Directive to Review NICS.
Department of Justice Submits Notice of Proposed Regulation Banning Bump StocksRead the Press Release
Today the Department of Justice submitted to the Office of Management and Budget a notice of a proposed regulation to clarify that the definition of “machinegun” in the National Firearms Act and Gun Control Act includes bump stock type devices, and that federal law accordingly prohibits the possession, sale, or manufacture of such devices.
"President Trump is absolutely committed to ensuring the safety and security of every American and he has directed us to propose a regulation addressing bump stocks,” said Attorney General Jeff Sessions. “To that end, the Department of Justice has submitted to the Office of Management and Budget a notice of a proposed regulation to clarify that the National Firearms and Gun Control Act defines ‘machinegun’ to include bump stock type devices.”
This submission is a formal requirement of the regulatory review process. Once approved by the Office of Management and Budget, the Department of Justice will seek to publish this notice as expeditiously as possible.Resident of York, Maine Pleads Guilty to Investment Fraud Scheme and Failing to File Federal Tax ReturnsRead the Press Release
CONCORD, N.H. - William Bischoff, 76, of York, Maine, has pleaded guilty to participating in an investment fraud scheme and failing to file federal income tax returns, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, from 2009 through September 2017, Bischoff defrauded more than two dozen clients of his financial advisory business by falsely promising to invest their money in real estate, structured legal settlements, high yield notes, and a start-up recycling business. He further guaranteed returns that far exceeded market norms. Bischoff sent many solicitations to the victims of the fraud scheme by e-mail.
In total, Bischoff stole more than $4.2 million from the defrauded investors. To conceal that conduct, Bischoff used money he received from some victim investors to make payments to other victim investors. He also provided monthly account statements to the victim investors that falsely represented the balance of their (fictitious) investment accounts.
Bischoff also admitted in court documents that he failed to file individual federal tax returns for the four-year period from 2011 to 2015, which resulted in a $568,845 tax revenue loss to the U.S. Treasury.
Bischoff pleaded guilty to one count of wire fraud and one count of willfully failing to file federal tax returns. He will be sentenced on June 20th, 2018.
“Mr. Bischoff manipulated and misled his victims, depriving them of millions of hard-earned dollars,” said U.S. Attorney Murray. “The U.S. Attorney’s Office is committed to working closely with our law enforcement partners to identify those who commit such schemes and to seek justice for the victims of white collar crimes.”
“Mr. Bischoff is finally taking responsibility for defrauding his clients out of millions of dollars. Through a web of lies and deceit, Mr. Bischoff betrayed their trust and used their money to line his own pockets and prop up his failed investments,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “The FBI will continue to work with our law enforcement partners to do everything we can to hold accountable those who take advantage of unwitting victims for their own personal gain.”
The Deputy Director of the New Hampshire Bureau of Securities Regulation, Jeffrey Spill, said, "The Bureau was pleased to do its part in this coordinated investigation. When the fraud was uncovered, the agencies acted quickly to shut the scheme down which prevented further losses."
“Mr. Bischoff’s investment scheme has destroyed the financial security of his unwitting victims. Rather than act in the interest of his clients, he acted only in his own,” said Special Agent in Charge Joel P. Garland of IRS Criminal Investigation in Boston. “We are proud to collaborate on joint cases of this magnitude, which defraud investors of millions in savings and the IRS of significant tax revenue.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, and the New Hampshire Bureau of Securities Regulation. Assistant United States Attorneys William Morse and Robert Kinsella prosecuted the case.
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