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 the Confirmation of Assistant Attorney General for National Security John C. DemersRead the Press Release
Attorney General Jeff Sessions issued the following statement on the Senate’s confirmation of John C. Demers as Assistant Attorney General for the National Security Division:
“Among his outstanding accomplishments in a distinguished legal career, John Demers was on the leadership team at the creation of the National Security Division, which today plays a crucial role in protecting Americans from the threat of terrorism, and protecting our national security from compromise by state-sponsored espionage, cyber intruders and the unauthorized disclosure of classified information,” said Attorney General Sessions. “I am grateful to the Senate for confirming John and I look forward to his return to the department, where his significant experience in both the private sector and public service will most certainly benefit the American people. We look forward to the Senate quickly confirming our remaining nominees.”
The mission of the National Security Division is to carry out the Department’s highest priority: protect the United States from threats to our national security by pursuing justice through the law. The NSD's organizational structure is designed to ensure coordination and unity of purpose between prosecutors and law enforcement agencies, on the one hand, and intelligence attorneys and the Intelligence Community, on the other, thus strengthening the effectiveness of the federal government’s national security efforts.
Prior to his confirmation, Mr. Demers was Vice President and Assistant General Counsel at The Boeing Company. He has held several senior positions at the company including in Boeing Defense, Space, and Security and as lead lawyer and head of international government affairs for Boeing International.
From 2006 to 2009, Mr. Demers served on the first leadership team of the Justice Department’s National Security Division, first as Senior Counsel to the Assistant Attorney General and then as Deputy Assistant Attorney General for the Office of Law & Policy. Before that, he served in the Office of Legal Counsel. For the past eight years, he has taught national security law as an adjunct professor at the Georgetown University Law Center.
Mr. Demers worked in private practice in Boston and clerked for Associate Justice Antonin Scalia of the U.S. Supreme Court and Judge Diarmuid O’Scannlain of the U.S. Court of Appeals for the Ninth Circuit. He graduated from Harvard Law School and the College of the Holy Cross.Oregon Man Pleads Guilty to Forced Labor and Related Crimes in Connection with Scheme to Coerce Thai Nationals to WorkRead the Press Release
Paul Jumroon, also known as Veraphon Phatanakitjumroon, 54, of Depoe Bay, Oregon, and a naturalized citizen originally from Thailand, pleaded guilty yesterday in a U.S. District Court in Portland, Oregon, to forced labor, visa fraud conspiracy, and filing a false federal income tax return, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Billy J. Williams of the District of Oregon, Special Agent in Charge Renn Cannon of the FBI in Oregon, and Special Agent in Charge Darrell Waldon of IRS Criminal Investigation’s Seattle Field Office. Jumroon waived indictment by a federal grand jury and pleaded guilty to an information filed by the United States Attorney’s Office and the Civil Rights Division.
According to the defendant’s plea agreement and admissions in court, between 2011 and 2014, the defendant and his associates fraudulently obtained E-2 visas to bring Thai nationals into the United States to provide cheap labor at his restaurants, Curry in a Hurry in Lake Oswego, Oregon and Teriyaki Thai in Ridgefield, Washington. E-2 visas are granted to foreign nationals who invest substantial money in a U.S. business and direct its operations, and to employees who have special qualifications that make their services essential to that business.
Jumroon used the fraudulently obtained visas to entice four forced labor victims to come to the United States by making false promises to them. According to court documents, the first victim arrived in the United States in June 2012, and the second victim arrived in April 2013. Jumroon used inflated travel expenses, debt manipulation, threats of deportation, serious financial and reputational harm, verbal abuse, and control over identification documents, among other means, to compel the victims to work 12 hours a day, six to seven days a week, for minimal pay, until they managed to leave in October 2013 and 2014, respectively.
As part of the defendant’s guilty plea, Jumroon agreed to pay all four victims a combined $131,391.95 in restitution for their unpaid labor in connection with his forced labor scheme.
The defendant further admitted to filing multiple false tax returns with the Internal Revenue Service, failing to report cash income earned from his restaurants between 2012 and 2015. As part of the plea agreement, Jumroon agreed to pay tax due and owing in the amount of $120,384 to the IRS.
“Combatting human trafficking is a priority for Attorney General Sessions and the Justice Department,” said Acting Assistant Attorney General Gore of the Civil Rights Division. “Securing a guilty plea today is just another example of this commitment and the work of the Civil Rights Division, in coordination with the U.S. Attorney’s Office, to hold those who choose to exploit vulnerable individuals accountable for their actions.”
“Human trafficking is a degrading crime that undermines our nation’s most basic promise of liberty. This defendant preyed on the hopes of vulnerable workers, using fear to compel them to work long hours for little pay. He turned a promise of employment and a better life into a human tragedy for his own financial gain,” said U.S. Attorney Billy J. Williams for the District of Oregon. “This case demonstrates our firm commitment to holding traffickers accountable and restoring the rights, freedom and dignity of victims. It should also serve as a reminder that these types of crimes happen all around us and often in plain sight. We encourage all Oregonians to remain watchful for signs of human trafficking and to notify law enforcement immediately when something seems amiss.”
“The American dream is built on the belief that hard work can bring about a better life. For the victims in this case, that dream turned into a nightmare of false promises, forced labor and abuse,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “These cases are very difficult to identify and work, so we are thankful the courageous victims in this case were able to reach out for help through trusted community contacts.”
“Forced labor schemes, such as the one employed by Paul Jumroon, are deplorable crimes that have no place in today’s society,” said Darrell Waldon, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “Falsely reporting income and expenses associated with such schemes will continue to be vigorously investigated by IRS-CI Special Agents.”
Jumroon faces a maximum of 20 years in prison for forced labor, five years in prison for visa fraud conspiracy, and three years in prison for filing a false tax return. His sentencing is scheduled for May 24 before United States District Judge Anna J. Brown.
Attorney General Sessions recently issued a proclamation commemorating January as National Slavery and Human Trafficking Prevention Month, and the Justice Department recently hosted a Human Trafficking Summit where both the Attorney General and Associate Attorney General Rachel Brand gave remarks.
The District of Oregon is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
This prosecution is the result of the joint investigation by the Federal Bureau of Investigation, Homeland Security Investigations, Internal Revenue Service Criminal Investigation and Department of State’s Diplomatic Security Service, with assistance from the Department of Labor’s Wage and Hour Division and Portland Police Bureau. The case is being prosecuted by Assistant U.S. Attorneys Hannah Horsley and Scott Bradford of the District of Oregon, and Lindsey Roberson of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Update: Defendant Paul Jumroon no longer owns either of the two restaurants mentioned in this release.
Operator of Massachusetts Temp Agency Pleads Guilty to Employment Tax Fraud and Obstructing the IRSRead the Press Release
A Massachusetts temporary employment agency operator pleaded guilty today in Boston federal district court to an indictment charging him with conspiring to defraud the government, failing to pay over employment taxes and obstructing the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment and statements provided in Court, Tien Chau ran an employment agency that provided temporary labor to businesses in Massachusetts and New Hampshire. The agency operated under at least four different names: Central Boston Staffing Services, Metro Boston Staffing Services, General Staffing Inc. and Kim’s Staffing Inc. Chau and others used nominees to conceal their ownership of the business.
From 2006 through 2011, Chau and others conspired to conceal the agency’s total number of employees from the Internal Revenue Service (IRS) to lower the staffing agencies’ employment tax liabilities. Chau attempted to hide the size of their workforce from the IRS by paying most of the employees cash under the table and filing false employment tax returns that both underreported the number of employees and omitted wages paid in cash. Chau and others in the conspiracy allegedly cashed over $11 million in client checks at a check cashing facility in Worcester and used the staffing agency’s site supervisors, office manager and drivers to pay the employees in cash.
The conspirators sought to obstruct an investigation by, among other things, directing an employee, after learning of her interview with special agents, to assist with shredding the agency’s records. Chau also allegedly destroyed and removed computers and computers equipment from the business’s office.
A sentencing date has been set for May 17, 2018. Chau faces a statutory maximum sentence of five years in prison for the conspiracy charge, five years in prison for each employment tax count, and three years in prison for obstructing the internal revenue laws. He also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Brittney Campbell and Shawn Noud of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mississippi Real Estate Investors Plead Guilty to Conspiracy to Rig Bids at Public Foreclosure AuctionsRead the Press Release
Two real estate investors pleaded guilty today for their roles in a conspiracy to rig bids at public real estate foreclosure auctions in Mississippi, the Department of Justice announced.
“Shannon and Jason Boykin are the first two defendants to plead guilty in the Antitrust Division’s active, ongoing investigation into anticompetitive behavior at real estate foreclosure auctions in Mississippi,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “In the past few years, the Division has secured convictions of over 100 individuals around the country. The Division remains committed to rooting out anticompetitive conduct at foreclosure auctions.”
Felony charges against Shannon Boykin and Jason Boykin were filed on February 1, 2018, in the U.S. District Court for the Southern District of Mississippi. According to court documents, from at least as early May 22, 2012, through at least as late as March 22, 2017, Jason and Shannon Boykin conspired with others to rig bids, designating a winning bidder to obtain selected properties at public real estate foreclosure auctions in the Southern District of Mississippi. Co-conspirators made and received payoffs in exchange for their agreement not to bid.
“Rigging, cheating and swindling foreclosure auctions undermines confidence in the marketplace, defrauds companies, and hurts owners of foreclosed homes. These criminal actions harm us all, and I commend the Antitrust Division and the FBI for their investigation and prosecution of these crimes throughout the country. This office will continue to work with our law enforcement partners to combat illegal, anticompetitive behavior and protect victims,” said United States Attorney D. Michael Hurst, Jr. for the Southern District of Mississippi.
“The criminal actions of the defendants in this case provide a clear example of why enforcement of the Sherman Act remains necessary in maintaining a competitive field of commerce,” said Special Agent in Charge Christopher Freeze of the FBI in Mississippi. “The FBI will continue to work with the U.S. Department of Justice’s Antitrust Division in identifying such financial schemes that attempt to take advantage of the competitive process, including schemes targeting foreclosure auctions.”
The Department said that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected real estate offered at public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money in connection with their agreement to suppress competition, which artificially lowered the price paid at auction for such homes.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.
The investigation is being conducted by the Antitrust Division’s Washington Criminal II Section and the FBI’s Gulfport Resident Agency, with the assistance of the U.S. Attorney’s Office for the Southern District of Mississippi. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact Antitrust Division prosecutors in the Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/report-violations.
Justice Department Reaches Settlement with the City and County of Honolulu and All Island Automotive Towing for Illegally Auctioning Servicemembers’ CarsRead the Press Release
The Justice Department today announced it has reached an agreement with the City and County of Honolulu, Hawaii (Honolulu or the City) and its contracted towing company, All Island Automotive Towing (All Island Towing), to remedy alleged violations of the Servicemembers Civil Relief Act (SCRA). The Department’s lawsuit, filed Feb. 15, 2018, alleges that Honolulu and All Island Towing violated the SCRA by auctioning or otherwise disposing of cars owned by protected servicemembers without first obtaining the required court orders.
Under the agreement, Honolulu must adopt new SCRA-compliant procedures, compensate three servicemembers who complained to military legal assistance attorneys that the City had unlawfully auctioned off their cars while they were at sea aboard Navy ships, and establish a $150,000 settlement fund to compensate other servicemembers whose SCRA rights may have been violated.
The Department launched its investigation after receiving a referral from military legal assistance officer Geoffrey Irving, now a Captain in the United States Marines, alleging that Honolulu had auctioned a marine’s vehicle while he was deployed. Two Navy legal assistance attorneys, Ms. Sarah Courageous and Lieutenant Commander (LCDR) Lena Whitehead, also requested that the Department investigate Honolulu on behalf of servicemembers whose vehicles had been auctioned while they were deployed. For more than five years, Ms. Courageous and LCDR Whitehead sent letters to Honolulu’s Corporation Counsel explaining that auctioning active-duty servicemembers’ cars without court orders violated the SCRA, but Honolulu continued the practice.
Marine Staff Sergeant (SSgt.) Orrin Sanford’s car was auctioned while he was aboard a U.S. Navy ship en route to Camp Foster in Okinawa, Japan. The vehicle, which was towed from the street in front of his home, had decals in the front windshield that are distributed only to Department of Defense employees for base access. Honolulu mailed a notice to SSgt. Sanford’s base address that it had taken his car into custody, but by the time the notice reached the ship, the City had already auctioned off the car. SSgt. Sanford’s military legal assistance attorney notified Honolulu that it had violated the SCRA and requested reimbursement for the vehicle, but Honolulu refused. As a result of Honolulu’s actions, SSgt. Sanford has had to continue making payments on a car that he no longer owns.
Navy Chief Petty Officer (CPO) Timothy Hartzog was also aboard a U.S. Navy ship when he learned that his car had been towed by Pinky Tows, a subcontractor of All Island Towing. CPO Hartzog executed a Power of Attorney aboard the ship designating a fellow chief petty officer as his agent. Pinky Tows refused to release the vehicle to that officer or to allow him to retrieve valuable tools and personal items from the trunk. All Island Towing then disposed of the vehicle and its contents. In addition to losing valuable tools and irreplaceable personal items, CPO Hartzog had to continue making payments on a car he no longer owned.
Navy Petty Officer Second Class (PO2) Cheri Tarbet was at the end of a six month deployment to the South Pacific when her roommate told her that her car was no longer parked on the street in front of their home. When PO2 Tarbet returned to Honolulu the following month, she attempted to report the car as stolen and learned from the police department that the car had been auctioned by Honolulu. PO2 Tarbet never received a notice from Honolulu that it had taken her vehicle into custody. A military legal assistance officer sent a letter to Honolulu indicating that PO2 Tarbet was an active-duty servicemember and requested restitution, but Honolulu refused to provide any reimbursement.
The Department’s investigation revealed that between 2011 and 2016, Honolulu auctioned 1,440 cars registered to individuals who had identified themselves as servicemembers on City forms during the motor vehicle registration process. Honolulu’s new procedures will ensure that servicemembers receive notice that their car has been taken into custody by Honolulu, even if they are deployed off island, and requires the City to obtain a court order or a valid SCRA waiver prior to auctioning a car owned by an active-duty servicemember.
“The Justice Department is committed to working tirelessly to protect the rights of the servicemembers who make great personal sacrifices in service to our country,” said Acting Assistant Attorney General John Gore of the Civil Rights Division “We appreciate that Honolulu and All Island Towing have been working cooperatively with the Department to reach a settlement that compensates servicemembers who lost their cars and personal possessions and that provides ongoing protections for the thousands of servicemembers stationed in Honolulu.”
“My office will continue to work with the Civil Rights Division to ensure that servicemembers who dedicate their lives to preserving our security and freedom do not forfeit their rights in doing so,” said U.S. Attorney Kenji M. Price of the District of Hawaii.
The SCRA protects servicemembers from certain civil proceedings that could affect their legal rights while they are in military service. One of those protections is the requirement that a person holding a lien on the property or effects of an active-duty servicemember obtain a court order prior to enforcing the lien. By failing to secure court orders before auctioning or disposing of cars owned by protected servicemembers, Honolulu and All Island Towing prevented servicemembers from obtaining a court’s review of whether the auction should be delayed or adjusted to account for their military service.
The SCRA also provides protections for active duty 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 SCRA rights have been violated should contact their nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/content/locator.php.
Former ICE Chief Counsel Pleads Guilty to Using the Identities of Numerous Aliens for Wire Fraud and Aggravated Identity Theft SchemeRead the Press Release
Former Chief Counsel Raphael A. Sanchez of U.S. Immigration and Customs Enforcement’s (ICE) Office of Principal Legal Advisor pleaded guilty today for a wire fraud and aggravated identity theft scheme involving the identities of numerous aliens, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and ICE Deputy Director Thomas D. Homan.
Sanchez, 44, of Seattle, Washington, will be sentenced on May 11, before U.S. District Judge Robert S. Lansik of the Western District of Washington.
“It is the duty of our federal immigration authorities to ensure the honest enforcement of our nation’s immigration laws,” said Acting Assistant Attorney General Cronan. “Raphael Sanchez betrayed that solemn responsibility and abused his official position to prey upon aliens for his own personal gain. We should not let one bad actor detract from the dedicated work done by all ICE agents and attorneys to keep our neighborhoods safe, and ICE should be commended for quickly and fully investigating this matter and referring it to the Justice Department for prosecution.”
“At the top of ICE’s core values is integrity, with an expectation that our employees adhere to the highest standards of honesty and professional conduct,” said Deputy Director Homan. “While I am appalled by these egregious, independent acts of criminal misconduct by Mr. Sanchez, I am grateful to the men and women of ICE who do their job with the utmost professionalism every day, including those in the Seattle Office of Chief Counsel, who I’m confident will continue to accomplish their mission with integrity and dedication, and our agents in the ICE Office of Professional Responsibility, who investigated this case and presented it for successful prosecution.”
According to admissions in the plea agreement, from October 2013 through Oct. 25, 2017, Sanchez, who had responsibility over immigration removal proceedings in Alaska, Idaho, Oregon and Washington, intentionally devised a scheme to defraud seven aliens in various stages of immigration removal proceedings. For his own personal gain, Sanchez used the personally identifiable information of those aliens to open lines of credit and personal loans in their names, manipulated their credit bureau files and transferred funds to and purchased goods for himself using credit cards issued in their names.
Sanchez admitted that he obtained personally identifiable information of the victim aliens by using ICE’s official computer database systems and by accessing their official, hard-copy immigration A-files, and then forged identification documents on his work computer, such as social security cards and Washington State driver’s licenses, in the victims’ names. Sanchez used the forged documents to open credit card and bank accounts in the names of aliens, which he controlled.
In furtherance of the scheme, Sanchez listed his home address as the aliens’ residences on account paperwork; in some cases, created public utility account statements in their names to provide the necessary proof of residence in order to open lines of credit in their names or to conceal the scheme; and opened e-mail and online financial accounts in the names of several aliens. Sanchez also manufactured a false earnings and leave statement in the name of one alien in furtherance of the scheme and registered a car in her name.
Sanchez further admitted that once the accounts were approved and opened, he made charges or drew payments totaling more than $190,000 in the names of aliens to himself or entities that he controlled, often using PayPal and mobile point of sale devices from Amazon, Square, Venmo and Coin to process fraudulent Internet transactions. In a number of cases, Sanchez purchased goods online in the names of aliens and had them shipped to his residence. Sanchez also employed credit monitoring services on some of these aliens and corresponded with credit bureaus in the names of aliens to conceal his fraud scheme. Finally, as part of the scheme to defraud, Sanchez also claimed three aliens as relative dependents on his tax returns for 2014 through 2016.
ICE’s Office of Professional Responsibility, the FBI and the U.S. Postal Inspection Service investigated the case. Trial Attorneys Luke Cass and Jessica C. Harvey of the Criminal Division’s Public Integrity Section are prosecuting the case.
Federal Search Warrants ExecutedRead the Press Release
On Wednesday, February 14, 2018, federal search warrants were executed at the following locations in Iowa and Oklahoma:
• 4600 block of Hubbell Avenue, Des Moines
• 1800 block of Dean Avenue, Des Moines
• 3100 block of East Tiffin Avenue, Des Moines
• 300 block of North Street, Promise City
• 1000 block of 69th Street, Windsor Heights
• 200 block of East Morton Street, Lucas
• 400 block of North 1st Street, Carlisle
• 18000 block of Oregon Street, Milo
• 1300 block of Andover Court, Oklahoma City, OklahomaThe searches at these locations were an official law enforcement action involving officers, agents, and investigators from the Des Moines Police Department (DMPD); Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Iowa Division of Narcotics Enforcement (DNE); Iowa State Patrol (ISP); Mid-Iowa Narcotics Enforcement Task Force – East (MINE – East); Central Iowa Drug Task Force (CIDTF); South Central Iowa Drug Task Force (SCIDTF); Wayne County Sheriff’s Office; and Lucas County Sheriff’s Office.
The following individuals were charged with possession with the intent to distribute methamphetamine:
• Terry Carl Sapp, 55, Des Moines
• Jennifer Michelle Jesse, 39, Des Moines
• Nicholas Allen George, 44, Des Moines
• Timothy Charles McClain, 58, Promise City
• Jeffrey Chaffee, 54, Carlisle
• Samuel Ivan Lamb, 57, LucasNo other information or comments will be released until documents have been filed with the court as part of the public record.
Department of Justice Files Complaint to Denaturalize Diversity Visa Recipient Who Obtained Naturalized Citizenship After Failing to Disclose Two Prior Orders of RemovalRead the Press Release
The Department of Justice yesterday filed a complaint in the Eastern District of Michigan to revoke the naturalized U.S. citizenship of Humayun Kabir Rahman fka Md Humayun Kabir Talukder aka Ganu Miah aka Shafi Uddin. The case was referred to the Department of Justice by U.S. Citizenship and Immigration Services (USCIS) and identified as a part of Operation Janus.
The complaint alleges Humayun Kabir Rahman arrived in the United States in February 1992 at John F. Kennedy International Airport, claiming his true name was Ganu Miah while in possession of a passport that did not belong to him. He was paroled into the United States so he could seek asylum, and his application was referred to the immigration court where an immigration judge ordered him removed in 1998. In 1994, while Ganu Miah’s proceeding was underway, Rahman sought asylum under a different name, Shafi Uddin. That application was also referred to the immigration court, and he was ordered to be removed in 1997. Later in 1997, using his third identity, Md Humayun Kabir Talukder, Rahman applied for and received an immigrant visa through the diversity visa program, claiming he had entered the United States by car from Canada. In 2004, he applied for and was granted permanent resident status, which he ultimately used to become a naturalized U.S. citizen in 2004. Throughout his immigration and naturalization proceedings, Rahman concealed that he had twice been ordered removed and lied about his identity and immigration history under oath. Rahman was also never lawfully admitted to the permanent resident status upon which he naturalized.
“As our country’s leaders debate the future of our immigration system, this alleged case of a decade of defrauding the United States to obtain citizenship is particularly alarming,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “In this instance, the suspect allegedly lied to the government as he twice sought to secure asylum under different identities, but was rebuffed and ordered removed both times before being randomly selected for a diversity visa. While the United States Senate assesses whether to continue the diversity visa program, the Justice Department will find the program’s fraudsters and hold them to account, to protect our national security.”
"This case illustrates the kind of fraud that we have discovered, and I hope today’s announcement sends a clear message that attempting to fraudulently obtain U.S. citizenship will not be tolerated," USCIS Director Francis Cissna said in a statement. "We are grateful to our partners who are working to bring these cases to justice and protect the integrity of our immigration system."
This case was investigated by USCIS and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case is being prosecuted by OIL-DCS’s National Security and Affirmative Litigation Unit (NS/A Unit), with support from USCIS Office of the Chief Counsel, Central Law Division.
The claims made in the complaint are allegations only, and there have been no determinations of liability.
DOJ Antitrust Chief Makan Delrahim to Meet with High-Level Officials, Colleagues in EuropeRead the Press Release
Assistant Attorney General Makan Delrahim of the U.S. Department of Justice’s Antitrust Division will travel to Europe today with stops in Paris, Brussels, and Bonn for a series of meetings, speaking engagements, and workshops with high-level officials and colleagues.
AAG Delrahim will be in Paris on February 15 and 16 and will be joined by Acting Deputy Assistant Attorney General Marvin Price to discuss the Antitrust Division’s cartel enforcement program at the American Bar Association’s biennial International Cartel Workshop. At the conference, AAG Delrahim will also meet with officials from the Division’s foreign enforcer counterparts.
From Paris, AAG Delrahim will travel to Brussels, where on February 20 he will meet with the European Union’s Commissioner for Competition, Margrethe Vestager, and other senior members of her team. The Deputy Assistant Attorney General for International, Roger Alford, will join AAG Delrahim for those meetings. The discussions will address international cooperation on enforcement and policy matters, including cases where the two agencies are jointly investigating. On February 21, AAG Delrahim will address EU antitrust practitioners at the College of Europe’s Global Competition Law Centre.
Following the engagements in Brussels, AAG Delrahim and DAAG Alford will travel to Bonn for meetings with the German antitrust authority, the Bundeskartellamt, including Andreas Mundt, the president of the Bundeskartellamt. They will also participate in a conference on the occasion of the 60th anniversary of the Bundeskartellamt.
From Bonn, DAAG Roger Alford will continue on to London, where on February 23, he will be the keynote speaker at a King’s College London conference on Innovation Economics for Antitrust Lawyers.
“Our relationships with our foreign counterparts are critical to enabling our enforcement work, and to promoting sound competition policy,” said Assistant Attorney General Delrahim. “I look forward to this opportunity to strengthen the bonds we have with our European colleagues.”
Department of Justice Files Motion to Hold Missouri Pesticide Manufacturer in Contempt for Failing to Comply with 2011 SettlementRead the Press Release
The United States and the State of Missouri have filed a motion asking a federal court to hold in contempt HPI Products Inc., its owner William Garvey, and St. Joseph Properties, LLC, for failing to comply with a 2011 environmental settlement by illegally storing thousands of pounds of hazardous chemicals in unsafe and dilapidated facilities in western Missouri. The Department of Justice, on behalf of the Environmental Protection Agency, and the Missouri Attorney General, on behalf of the Missouri Department of Natural Resources, filed the motion today in U.S. District Court for the Western District of Missouri.
The contempt motion also requests that the court appoint a receiver to oversee the operation of the defendants’ business in compliance with the 2011 consent decree and applicable law.
The defendants own and operate a pesticide formulating business with six facilities in St. Joseph, Missouri. The 2011 consent decree was intended to resolve numerous violations of federal and state environmental laws and requires the defendants to characterize and properly manage large quantities of hazardous wastes generated or stored at its St. Joseph facilities.
Despite a May 2017 court order requiring the defendants to comply with the 2011 consent decree, HPI and Garvey continue to store thousands of pounds of uncharacterized, often unidentified, chemicals, some with labels indicating that they have been stored for a dozen years or more. In addition, many of HPI’s facilities lack functional fire suppression equipment, two facilities previously suffered partial collapse, one burning down, and many of them are in extreme disrepair and in danger of collapse. Chemical wastes at these facilities are exposed to the elements and are readily accessible to members of the public, posing a significant danger to public health and safety and the environment.
“Today, we are asking the court to hold the defendants in contempt for their utter failure to comply with federal and state hazardous waste laws at their property,” said Jeffrey H. Wood, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “This is a serious public health and safety matter. We also are asking the court to appoint a receiver to manage the defendants’ hazardous wastes in a manner that protects the citizens of St. Joseph, ensures the safety of employees at HPI, and prevents harm to the environment.”
“EPA works with companies to assist them in complying with federal environmental laws when we have a willing party,” said James Gulliford, EPA Region 7 Administrator. “We have passed that stage with HPI and value the diligent work of the Department of Justice in helping EPA carry out our Congressional mandate to enforce federal laws that protect human health and the environment."
National Consumer Bankruptcy Law Firm Sanctioned for Harming Financially Distressed Consumers and Auto LendersRead the Press Release
After a four-day trial, a national consumer bankruptcy law firm and its local partner attorneys were sanctioned and enjoined by the U.S. Bankruptcy Court for the Western District of Virginia for causing “unconscionable” harm to their clients. The court found that the law firm and its attorneys, among other things, systematically engaged in the unauthorized practice of law, provided inadequate representation to consumer debtor clients, and promoted and participated in a scheme to convert auto lenders’ collateral and then misrepresented the nature of that scheme, Director Cliff White of the Executive Office for U.S. Trustees announced today.
On Feb. 12, the U.S. Bankruptcy Court for the Western District of Virginia entered orders in two actions brought by the U.S. Trustee. The court sanctioned Law Solutions Chicago, doing business as “UpRight Law” (UpRight), and its principals $250,000; imposed additional sanctions of $50,000 against UpRight’s managing partner Kevin Chern, and $5,000 each against UpRight’s affiliated partner attorneys Darren Delafield and John C. Morgan Jr.; and ordered UpRight to disgorge all fees collected from the consumer debtors in both bankruptcy cases. The court also revoked UpRight’s bankruptcy filing privileges in the Western District of Virginia for not less than five years, and those of its local partners for 12 and 18 months, respectively. The bankruptcy court also sanctioned Sperro LLC (Sperro), an Indiana towing company that did not respond to the U.S. Trustee Program’s complaints, and ordered the turnover of all funds it received in connection with bankruptcy cases in the district.
“Lawyers who inadequately represent consumer debtors harm not only their clients, but also creditors and the integrity of the bankruptcy system,” said Director White. “The damage caused increases exponentially when they operate nationally, like UpRight. This case is demonstrative of the vigorous enforcement actions that the U.S. Trustee Program can and will take to protect all stakeholders in the bankruptcy process.”
According to trial testimony and evidence presented in court, UpRight operates a website offering legal services to consumers in financial distress. Prospective clients contact UpRight via the Internet and are routed to UpRight’s sales agents. These non-attorney “client consultants” were trained to “close” prospective clients by using high-pressure sales tactics and improperly provided legal advice to encourage them to file for bankruptcy relief. In many instances, UpRight arranged payment plans for its prospective clients to pay bankruptcy-related attorney’s fees and costs over time, and refused to refund fees it collected from its clients for whom UpRight did not file a bankruptcy case. The bankruptcy court found that UpRight had “serious oversight issues” in failing to adequately supervise its salespeople to prevent their unauthorized practice of law, and that UpRight demonstrated a “focus on cash flow over professional responsibility.”
Additionally, UpRight worked in concert with Sperro to implement a program through which UpRight’s clients could have their bankruptcy legal fees paid through a “New Car Custody Program.” The bankruptcy court described the New Car Custody Program as “a scam from the start.” UpRight’s salespeople and attorneys counseled bankruptcy clients to “surrender” vehicles fully encumbered by auto lenders’ liens to Sperro without the lienholders’ consent, and enter into an agreement obligating the clients to pay Sperro the costs of towing the vehicle, transporting it across state lines – often over a long distance – and storing it. UpRight assured its debtor clients that they would not have to pay any fees to Sperro, and in some instances advised its clients to hide their vehicles from lenders looking to repossess them until Sperro could pick up the vehicles.
After Sperro took a vehicle, it asserted a statutory “warehouseman’s lien,” claiming the right to keep the vehicle until the sham towing, transportation, and storage fees were paid. Then it offered the vehicle for sale at auction, despite the auto lender’s continuing security interest. Out of the sale proceeds, Sperro paid the debtor client’s bankruptcy fees directly to UpRight. Sperro kept the rest of the sale proceeds. In some cases, UpRight prepared bankruptcy court filings omitting the debtor clients’ transactions with Sperro.
The “New Car Custody Program” harmed auto lenders by converting collateral in which they had valid security interests. And the bankruptcy court found that UpRight “preyed upon some of the most vulnerable in our society” – its debtor clients – “while they were under great stress” by providing “unconscionable” advice to participate in the Sperro scheme, exposing them to undue risk by causing them to possibly violate the terms of their contracts with their auto lenders as well as state laws.
The cases discussed above are captioned Robbins v. Delafield et al., Adv. No. 16-07024 (Bankr. W.D. Va. Feb. 12, 2018), and Robbins v. Morgan et al., Adv. No. 16-05014 (Bankr. W.D. Va. Feb. 12, 2018).
Director White commended the trial team of Assistant U.S. Trustee Margaret Garber and Trial Attorneys Joel Charboneau, Nick Foster and Joan Swyers for their handling of these matters.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 92 field office locations. Learn more information on the Program at: https://www.justice.gov/ust.
Michaels Stores Agrees to Pay $1.5 Million to Settle CPSC Delayed Reporting ClaimRead the Press Release
Michaels Stores Inc. and Michaels Stores Procurement Co. Inc. (Michaels) agreed to enter into a consent decree and pay $1.5 million, the Justice Department announced today. The decree resolves allegations that Michaels failed timely to report to the Consumer Product Safety Commission (CPSC) information regarding a large glass vase that injured consumers between 2007 and 2009.
“This settlement underscores the importance of reporting product safety issues immediately,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to prioritize consumer safety by enforcing product safety obligations.”
Between 2006 and 2010, Michaels sold approximately 200,000 of the vases in the United States and Canada. In February 2010, Michaels reported safety issues related to the vases to the CPSC. The Department of Justice’s April 2017 Amended Complaint alleged that Michaels violated the Consumer Product Safety Act (CPSA) by not reporting the vases’ safety issues earlier, as Michaels possessed information that the vases had injured one consumer in 2007 and at least four customers in the first half of 2009.
The consent decree requires Michaels to maintain a compliance program to ensure that it complies with the CPSA and to maintain internal controls and procedures designed to ensure timely, complete, and accurate reporting to the CPSC.
“I’m pleased that the Department of Justice and Michaels were able to reach this agreement,” said CPSC Acting Chairman Ann Marie Buerkle. “We greatly appreciate DOJ’s efforts on behalf of consumers.”
In agreeing to settle the case, Michaels has not admitted that it violated the law.
The United States is represented by Trial Attorneys Kerala Cowart, Claude Scott, and Lisa Hsiao of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorney Lisa Hasday of the U.S. Attorney’s Office for the Northern District of Texas, with the assistance of Patricia Vieira of the CPSC’s Office of the General Counsel. For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Shell Chemical LP to Install $10 Million in Pollution Monitoring and Control Equipment at Norco Chemical Facility in Louisiana to Resolve Alleged Federal and State Clean Air ViolationsRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Louisiana Department of Environmental Quality (LDEQ) announced a settlement today with Shell Chemical LP that each year will eliminate more than 150 tons of excess emissions of harmful air pollutants from Shell’s chemical plant located in Norco, Louisiana, in St. Charles Parish. The settlement resolves allegations that Shell violated the Clean Air Act and State law by failing to properly operate industrial flares at the facility.
The settlement, in the form of a Consent Decree, will require Shell to spend approximately $10 million to install and operate air pollution control and monitoring technology to reduce harmful air pollution from four industrial flares at the Norco plant. Once fully implemented, the pollution controls required by the settlement are estimated to reduce air emissions of volatile organic compounds (VOCs) by approximately 159 tons per year, and reduce other harmful air pollutants, including benzene, by approximately 18 tons per year.
“We are proud to partner with the State of Louisiana on this important Clean Air Act settlement, which will benefit the citizens of Louisiana,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “This agreement is the latest in EPA’s and the Justice Department’s continuing efforts to work with our state partners to protect the American public from harmful air pollution.”
“This settlement will improve air quality for citizens of Louisiana by reducing emissions of harmful air pollution,” said EPA Administrator Scott Pruitt. “Today’s agreement demonstrates EPA’s dedication to working with states to pursue violations of laws that are critical to protecting public health and bring companies into compliance.”
“We are committed to working hand-in-hand with our federal partners to reduce air pollution in Louisiana,” said LDEQ Secretary Dr. Chuck Carr Brown. “Actions like this one not only serve to clean up the air our citizens breathe, they send a message that we will not tolerate violations of federal or state laws.”
VOCs and benzene can seriously harm public health. 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. Chronic exposure to benzene, which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women.
The settlement agreement will reduce flaring and improve Shell’s flaring practices, reducing emissions at the facility. Industrial flares burn waste gases that otherwise would be released to the atmosphere. Well-operated flares have high “combustion efficiency,” meaning they burn nearly all the harmful components in the waste gas, including VOCs and hazardous air pollutants, turning them into water and carbon dioxide.
Under the consent decree, Shell will take steps to minimize the amount of waste gas sent to the flares. Shell will also operate a flare gas recovery system at the facility, which will save the company money by allowing it to use waste gas as fuel; this waste gas would otherwise be sent to the facility’s flares. In addition, by installing and maintaining state-of-the-art monitoring and control technology at its flares, Shell will ensure that the flares are operated at a high combustion efficiency. Finally, Shell will install and maintain monitoring equipment to detect air pollution along the facility fence line and publish the monitoring results on a public website. Shell will also pay civil penalties totaling $350,000, including $87,500 for LDEQ.
The consent decree, lodged in the Eastern District Court of Louisiana, is subject to a 30-day federal public comment period, a 45-day State public comment period, and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
Department of Justice FY 2019 Budget RequestRead the Press Release
President’s Request Invests in Department of Justice Criminal Justice Priorities, Including Protecting National Security, Supporting Law Enforcement, Enforcing Immigration Laws, and Protecting our Citizens from Violent Crime and the Scourge of the Opioid Epidemic.
President Trump’s FY 2019 Budget proposal totals $28 billion for the Department of Justice to support federal law enforcement and criminal justice priorities of our state, local, and tribal law enforcement partners. The request represents a comprehensive investment in the Justice mission and includes increases in funding for strengthening security efforts to reduce violent crime, enforce the nation’s immigration laws, combat the opioid epidemic, and continues its commitment to national security.
“The Department of Justice has the noble task of keeping the American people safe from drugs, gangs, and terrorists, and this budget proposal reflects our commitment to do just that,” said Attorney General Jeff Sessions. “President Trump has ordered us to accomplish these goals by supporting state and local law enforcement, dismantling transnational organized crime, and working to bring down crime rates. For the last year, we have aggressively carried out that agenda and have already seen major successes that benefit the American people. Congress should invest in these efforts—because all of us benefit from a safer America.”
The Department of Justice’s areas of investment include:
- +$295 million in program enhancements and transfers to fight the opioid crisis and support law enforcement safety. Additional resources will be devoted to combatting transnational criminal organizations, known for supplying illicit substances to the United States.
- +$65.9 million in immigration related program enhancements to enhance border security and immigration enforcement. These investments will also improve our ability to conduct immigration hearings to help combat illegal immigration.
- +$109.2 million to strengthen federal law enforcement’s ability to reduce violent crime.
- +$10 million for BOP’s apprentice program giving inmates the necessary skills for successful post incarceration employment.
- +$13 million for the Criminal Division to support Mutual Legal Assistance Treaty (MLAT) reform.
- $3.9 billion in discretionary and mandatory funding for federal grants to state, local, and tribal law enforcement and victims of crime, to ensure greater safety for law enforcement personnel and the people they serve. Critical programs aimed at protecting the life and safety of state and local law enforcement personnel, including the Public Safety Partnership Program and the Project Safe Neighborhood Program, demonstrate our continuing commitment to supporting state, local, and tribal law enforcement.
For more information, view the FY 2019 Budget and Performance Summary at https://www.justice.gov/doj/fy-2019-budget-and-performance-summary.
Combating Violent Crime
Protecting the American people from violent crime is a top priority for the Department of Justice. Unfortunately, in recent years, crime has been on the rise in too many places across the country. FBI statistics show that, in 2015 and 2016, the United States experienced the largest increases in violent crime in a quarter-century. Over those two years, violent crime increased by nearly 7%. Robberies, assaults, and rapes all increased, and murder increased by a shocking 20%.
In 2017, the Department made some great strides, 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. The Department brought cases against the greatest number of violent criminals in at least 25 years—since the Department began tracking a “violent crime” category. Although preliminary numbers for 2017 show a decrease, violent crime rates are still excessively high.
The FY 2019 budget requests $109.2 million in program enhancements to reduce violent crime and combat transnational criminal organizations. These resources will enable the Department to dismantle the worst criminal organizations, target the most violent offenders, and protect the public.
For more information, view the Combating Violent Crime Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.
Enforce Immigration Laws
The FY 2019 President’s Budget strengthens the Nation’s security through stronger enforcement of the Nation’s immigration laws. The Department is requesting $65.9 million in immigration-related program enhancements for FY 2019, which will enhance border security and immigration enforcement. These investments will also improve our ability to conduct immigration hearings to help combat illegal immigration to the United States by expanding capacity, improving efficiency, and removing impediments to the timely administration of justice. This budget supports the Department’s efforts, along with our partners at the Department of Homeland Security, to fix our immigration system.
For more information, view the Enforce Immigration Laws Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.
Drug Enforcement and the Opioid Crisis
The United States is in the midst of the deadliest drug epidemic in American history. According to the Centers for Disease Control and Prevention (CDC), more than 63,600 Americans died from drug overdoses in 2016, a 21% increase from the previous year. Over 42,200, or approximately two-thirds, of these overdose deaths were caused by heroin, fentanyl, and prescription opioids. The President declared this scourge a National Public Health Emergency in October 2017, and the Department remains committed to doing its part to protect the American people from the impact of drugs and drug-related crime nationwide.
The FY 2019 budget requests $295 million in program enhancements and transfers to combat the opioid crisis and bolster drug enforcement efforts. These resources will enable the Department to target those drug trafficking organizations most responsible for the opioid epidemic and drug-related violence in our communities, as well as ensure the life and safety of first responders who are on the front lines protecting the American people.
For more information, view the Drug Enforcement and the Opioid Crisis Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.
State, Local, and Tribal Assistance
The Justice Department is committed to reducing violent crime and addressing the opioid epidemic. Federal law enforcement officers constitute only 15% of the total number of law enforcement officers nationwide; therefore, 85% of the officer support relies upon strong partnership with state and local law enforcement. The Department supports its partners in state and local law enforcement, who have critical intelligence about violent crime in their communities, and whose actions are crucial in the fight against violent crime and the opioid epidemic.
The FY 2019 Budget continues its commitment to state, local and tribal law enforcement by investing approximately $3.9 billion in discretionary and mandatory funding in programs to assist them. Funding has been prioritized to meet the most pressing law enforcement concerns – violent crime and opioid abuse – and to help the victims of crime.
For more information, view the State, Local and Tribal Assistance Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.Restructuring Initiatives
The President’s Administration is committed to establishing a smaller, leaner federal government that reduces, both, bureaucracy and costs to the American taxpayer. Since 2017, the Department of Justice has undertaking efforts to refocus resources and turn our efforts back to our core mission. To support the President’s Executive Order 13781 on reorganizing the Executive Branch, the Department of Justice has begun taking steps to streamline itself and to save taxpayer dollars. As part of the FY 2019 President’s Budget, the Department is proposing a number of initiatives to achieve savings, to reduce the size of government, and maximize agency performance.
For more information, view the Restructuring Initiative Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.
U.S. Department of Justice and U.S. Army Corps of Engineers Reach a Settlement of Clean Water Act Violations by Florida DeveloperRead the Press Release
Today, the U.S. Department of Justice, on behalf of the U.S. Army Corps of Engineers (Corps) for the Jacksonville District, submitted to the United States District Court for the Middle District of Florida a proposed consent decree that would resolve alleged violations of the Clean Water Act by condominium developers Lodge/Abbott Investments Associates LLC and Lodge/Abbott Associates LLC.
The Clean Water Act requires any person who plans to fill federally protected wetlands to receive a permit from the Corps. The defendants in this case did not obtain a permit from the Corps before they filled over an acre of high quality wetlands that abut and function in close proximity to the tidal waters of Wiggins Pass and the Cocohatchee River in Naples, Florida. The purpose of the fill was to create “Tower 200,” one of five towers comprising a high-end condominium development known as “Kalea Bay” in North Naples.
Under the proposed consent decree, the defendants are required to pay a $350,000 civil penalty. In addition, to offset the environmental impact of the alleged violations, the defendants have purchased approximately $54,000 in mitigation credits from a Corps-approved wetlands mitigation bank. The proposed decree also enjoins the defendants from filling any additional wetlands without first obtaining a permit or other clearance from the Corps.
“The coastal wetlands in this case are a stone’s throw from the Gulf of Mexico and Cocohatchee River,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resource Division. “Federal law requires Corps of Engineers approval before development projects like this can take place in these protected areas. We are pleased to reach this agreement that serves the public interest in enforcing the Clean Water Act.”
“When wetlands are filled in violation of the Clean Water Act, the loss is felt not only today, but by all generations to come,” said U.S. Attorney Maria Chapa Lopez. “The substantial penalty obtained in this case sends a message to anyone who fails to abide by our nation’s environmental laws that they will be held accountable.”
“The district's enforcement staff, with DOJ assistance, is pleased to have reached an expedited resolution of this section 404 Clean Water Act violation,” said Jacksonville District Enforcement Chief Bobby Halbert for the U.S. Army Corps of Engineers. “Our regulatory enforcement program intends to continue working to deter unauthorized activities such as this, while continually maintaining the integrity of our Nation's aquatic and wetland resources.”
Compliance and enforcement are important components of the Corps’ regulatory program, as it assures that the public interest and environmental resources are protected. The Corps’ Jacksonville District has a routine compliance inspection program throughout Florida, Puerto Rico, and the U.S. Virgin Islands. The Corps’ Jacksonville District Enforcement Section is often aided by state and federal agencies as well as groups and individuals who report suspected violations. To address violations, the Corps is authorized to prescribe corrective action, impose fines, and/or prescribe removal of the offending fill, work, or structure.
The proposed consent decree, lodged in the U.S. District Court in Fort Myers, is subject to a 30-day 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 on the Jacksonville District and the Corps’ Regulatory program, visit: http://www.saj.usace.army.mil/Missions/Regulatory.
Justice Department Reaches Settlement with Henry Ford Allegiance Health on Antitrust ChargesRead the Press Release
The Department of Justice announced today that it has reached a settlement with Henry Ford Allegiance Health (“Allegiance”) for conspiring with a rival hospital in a neighboring county to restrict marketing in that rival’s county. The settlement ends almost three years of litigation and a scheduled March 6 trial relating to agreements to restrict marketing among hospitals in South Central Michigan.
“As a result of Allegiance’s per se illegal agreement to restrict marketing of competing services in Hillsdale County, Michigan consumers were deprived of valuable services and healthcare information,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “By prohibiting further anticompetitive conduct and educating Allegiance executives on antitrust law, this settlement will ensure that consumers receive the fruits of robust competition.”
The proposed settlement, joined by the Michigan Attorney General’s Office, was filed today in the U.S. District Court for the Eastern District of Michigan. If approved by the court, the settlement will end Allegiance’s unlawful conduct and provide residents of South Central Michigan the full benefits of competition. The Department’s Antitrust Division previously settled claims against three other South Central Michigan hospitals. The Department charged Allegiance and these other hospitals with insulating themselves from competition by agreeing to withhold outreach and marketing in each other’s respective counties, so as not to solicit certain customers. As a result, consumers were denied the benefits of competition, including free screenings and other services, as well as valuable information that informs healthcare choices and opportunities for higher quality care.
The Department’s proposed settlement with Allegiance expands on the terms of the Department’s previous settlements in this action, which the court entered more than two years ago. Specifically, the proposed settlement prevents Allegiance from engaging in improper communications with competing providers regarding their respective marketing activities and entering into any improper agreement to allocate customers or to limit marketing. It explicitly prevents Allegiance from continuing to carve out Hillsdale County from its marketing and business development activities. The proposed settlement further requires Allegiance to report any violations to the Department, and imposes an annual obligation to certify compliance with the terms of the final judgment. Allegiance must also submit to compliance inspections at the Department’s request. The proposed settlement requires Allegiance to reimburse the Department and the state of Michigan for certain costs incurred in litigating this case.
Pursuant to Department policy, the settlement includes several new provisions included in all consent decrees designed to improve the effectiveness of the decree and the Division’s future ability to enforce it. “The proposed settlement will make it easier and more efficient for the Department to enforce the decree by allowing the Department to prove alleged violations by a preponderance of the evidence,” said Assistant Attorney General Delrahim. “These provisions will encourage a stronger commitment to compliance and will ease the strain on the Department in investigating and enforcing possible violations.” Similar provisions have been included in a number of recent consent decrees where the Department’s new leadership has sought divestitures as a condition of clearing transactions under Section 7 of the Clayton Act.
Henry Ford Allegiance Health is a 475-bed health system that operates the sole general acute care hospital in Jackson County, Michigan, along with primary care physician offices, physical rehabilitation facilities, and diagnostic centers across several counties in South Central Michigan. In March 2016, Allegiance became part of the Henry Ford Health System. Henry Ford Health System is headquartered in Detroit, Michigan, and is the second largest health system in Michigan, operating Allegiance, five other hospitals, several medical centers, and one of the nation’s largest medical group practices. Its 2016 revenues were over $5 billion.
The proposed settlement, along with the Department’s competitive impact statement, will be published in the Federal Register, consistent with the requirements of the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Peter Mucchetti, Chief, Healthcare & Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, NW, 4th Floor, Washington, DC 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Former Homeland Security Investigations Special Agent Sentenced to Prison for Accepting Bribes to Dismiss Indictment Against Colombian Narcotics KingpinRead the Press Release
A former U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) Special Agent was sentenced today to 36 months in prison for accepting bribes in exchange for orchestrating, through multiple misrepresentations to numerous government agencies, the dismissal of a drug trafficking indictment filed against a fugitive narcotics kingpin, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
According to admissions in his plea agreement, Christopher V. Ciccione II, 52, of Phoenixville, Pennsylvania, accepted cash and other things of value and used his official position to cause a drug trafficking indictment against Colombian national Jose Bayron Piedrahita Ceballos to be dismissed. Piedrahita and Colombian national Juan Carlos Velasco Cano met with Ciccione in Bogota, Colombia in December 2010, where they provided him with approximately $20,000 in cash, dinner, drinks and prostitutes. In exchange, Ciccione disclosed the identities of confidential sources cooperating against Velasco three times, made numerous misrepresentations to the U.S. Attorney’s Office and HSI management, and altered law enforcement records to represent to decision makers that Piedrahita was a “former” suspect of a closed investigation, rather than a “current” subject; that Piedrahita was “never positively identified” during that investigation; and that his case should be dismissed because no one could obtain probable cause to “supersede another indictment.” Ciccone also falsified the concurrence of several other federal agents and attempted to parole Piedrahita into the United States.
“Christopher Ciccione abused his law enforcement authority for personal profit,” said Acting Assistant Attorney General Cronan. “His actions not only comprised an ongoing investigation and nearly allowed a dangerous drug kingpin to escape justice, but they also betrayed the public trust placed in him to carry out his sworn duties with integrity. Today’s sentence demonstrates the hard work of our federal law enforcement partners to bring criminals to justice—no matter who they are.”
Ciccione was sentenced by U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida. Velasco was sentenced to 27 months in prison on Jan. 17. Piedrahita is currently incarcerated in the Republic of Colombia.
The U.S. Department of the Treasury’s Office of Foreign Assets Control designated Piedrahita as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act on May 3, 2016.
ICE’s Office of Professional Responsibility, Department of Homeland Security’s Office of Inspector General and the FBI investigated the case. The Justice Department’s Office of International Affairs and Office of the Judicial Attaché in Colombia and the Drug Enforcement Administration provided valuable assistance to the investigation. The Colombian Attorney General’s Office also provided invaluable support. Trial Attorneys Luke Cass and Jennifer A. Clarke of the Criminal Division’s Public Integrity Section are prosecuting the case.
Associate Attorney General to Leave Justice Department for Private SectorRead the Press Release
Today the Department of Justice announced that Associate Attorney General Rachel Brand will leave the Department of Justice in the coming weeks to take a position in the private sector.
“Rachel Brand is a lawyer’s lawyer,” Attorney General Jeff Sessions said. “She is a graduate of Harvard Law School, clerked at the Supreme Court, she worked at the White House, in academia, and has served in leadership positions spanning three administrations. As Associate Attorney General, she has played a critical role in helping us accomplish our goals as a Department—taking on human trafficking, protecting free speech on campus, and fighting sexual harassment in public housing. And when I asked her to take the lead in the Department’s efforts on Section 702 re-authorization, she made this her top priority and combined her expertise and gravitas to help pass legislation keeping this crucial national security tool. Rachel has shown real leadership over many important divisions at the Department. I know the entire Department of Justice will miss her, but we join together in congratulating her on this new opportunity in the private sector. She will always remain a part of the Department of Justice family.”
“The men and women of the Department of Justice impress me every day,” Associate Attorney General Rachel Brand said. “I am proud of what we have been able to accomplish over my time here. I want to thank Attorney General Sessions for his leadership over this Department. I’ve seen firsthand his commitment to the rule of law and to keeping the American people safe.”
Rachel Brand has served as Associate Attorney General since May 22, 2017.
As Associate Attorney General, she has served as the third-ranking officer in the Department of Justice and oversees the following Department components: Antitrust Division, Civil Division, Civil Rights Division, Environment and Natural Resources Division, Tax Division, Executive Office for U.S. Trustees, Office of Justice Programs, Community Oriented Policing Services (COPS), Office on Violence Against Women, Community Relations Service, Office of Access to Justice, Office of Information Policy, Foreign Claims Settlement Commission, and the Service members and Veterans Initiative. She also serves as the Department’s Regulatory Reform Officer and chairs the Regulatory Reform Task Force.
Before becoming Associate Attorney General, Ms. Brand had a diverse legal career in public service and in the private sector. From 2012 to 2017, she served as one of five Senate-confirmed Members of the Privacy and Civil Liberties Oversight Board, appointed by President Barack Obama. In that capacity, she provided advice and oversight to U.S. counterterrorism agencies to ensure that privacy and civil liberties are balanced with national security objectives.
Ms. Brand previously served in the Department of Justice from 2003 to 2007, first as the Principal Deputy Assistant Attorney General for the Office of Legal Policy, and then as the Senate-confirmed Assistant Attorney General for Legal Policy, appointed by President George W. Bush. In that capacity, Ms. Brand served as chief policy adviser to the Attorney General, handling a broad range of national security, law enforcement, and civil justice issues. She also oversaw the development of all regulations promulgated by the Department of Justice and managed the Department's role in selecting federal judges, including running the confirmation process for Chief Justice John G. Roberts and Associate Justice Samuel Alito. Earlier, Ms. Brand was an Associate Counsel to President George W. Bush in the White House.
Outside of the federal government, Ms. Brand has been an Associate Professor of law at George Mason University’s Antonin Scalia Law School, an adjunct professor at George Washington University Law School, and a lawyer in private practice in Washington, D.C.
She served as a law clerk to Associate Justice Anthony M. Kennedy of the Supreme Court of the United States during the 2002 – 2003 Term and to Justice Charles Fried of the Supreme Judicial Court of Massachusetts. Ms. Brand graduated from Harvard Law School, where she served as deputy editor-in-chief of the Harvard Journal of Law and Public Policy, and earned a B.A. from the University of Minnesota-Morris.St. Peters, MO Woman Pleads Guilty to Fraudulent Preparation of Bankruptcy PetitionsRead the Press Release
This morning, in Federal Court in East St. Louis, IL, Phebe Ibrahim, formerly known as "Phebe Khan," 50, of St. Peters, MO, pled guilty to 21 counts of bankruptcy fraud and related charges, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Ibrahim was indicted on October 3, 2017, as part of the U.S. Attorney’s Office’s continuing effort to crackdown on those who commit fraud in the U.S. Bankruptcy Court for the Southern District of Illinois.
In pleading guilty today, Ibrahim, a non-lawyer, admitted that she worked as a bankruptcy petition preparer, preparing bankruptcy petitions and other documents for debtors who wished to file bankruptcy in the Southern District of Illinois. The Bankruptcy Code imposes certain restrictions on bankruptcy petition preparers, including requiring them to disclose their names on any documents they prepare, and allowing the Bankruptcy Courts to set maximum fees that they can charge their customers. The practice in the U.S. Bankruptcy Court for the Southern District of Illinois is that bankruptcy petition preparers are not allowed to charge fees of more than $150.
Ibrahim admitted that she defrauded the debtors for whom she prepared bankruptcy petitions by routinely charging fees that exceeded the maximum allowable amount. Ibrahim also acknowledged that she attempted to conceal her fraud by not disclosing her name on the documents she prepared, and by instructing her customers not to mention her name during their bankruptcy cases.
The Bankruptcy Code also requires that debtors attend a credit counselling briefing prior to filing a bankruptcy case. Ibrahim admitted that she circumvented and defeated this provision of the Bankruptcy Code by causing false "Certificates of Counselling" to be filed on behalf of her customers. These Certificates represented that Ibrahim’s customers had attended the required credit counselling briefing.
"The U.S. Trustee Program works with other law enforcement agencies to track down and pursue bankruptcy petition preparers who fail to comply with the requirements of the Bankruptcy Code, circumvent its provisions and prey on consumers in financial distress," stated Nancy J. Gargula, United States Trustee for Southern and Central Illinois and Indiana (Region 10). "We
appreciate the commitment of U.S. Attorney Boyce and our law enforcement partners to address fraud and abuse in the bankruptcy system. We welcome information that will help detect unscrupulous bankruptcy petition preparers and we encourage citizens to report suspected bankruptcy fraud through our Internet hotline at [email protected]."
Ibrahim pled guilty to seven counts each of bankruptcy fraud, causing false statements to be made under penalty of perjury in a bankruptcy case, and falsifying records in a bankruptcy case. Each of the bankruptcy fraud and false statements under penalty of perjury counts carries a maximum sentence of five years in prison and a fine of up to $250,000. Each of the falsification of records charges carries a maximum sentence of twenty years in prison and a maximum fine of $250,000.
Ibrahim will be sentenced on May 10, 2018, at 9:30 A.M. at the Federal Courthouse in Benton, IL.
The charges resulted from a referral by the U.S. Trustee for Indiana and Southern and Central Illinois (Region 10) to the U.S. Attorney for the Southern District of Illinois. The investigation was conducted by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation ("FBI"), in collaboration with the Southern Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Antitrust Division Establishes the “Jackson-Nash Address” and Announces Professor Alvin Roth as Inaugural SpeakerRead the Press Release
The Antitrust Division is pleased to announce the establishment of the Jackson-Nash Address, and to announce that Professor Alvin Roth, the McCaw Professor of Economics at Stanford University, will be the inaugural speaker. Professor Roth is the 2012 winner of the Nobel Prize for Economics for the theory of stable allocations and the practice of market design, and the author of “Who Gets What and Why.” He will deliver his address on February 26, 2018, at The Great Hall, The Robert F. Kennedy Building, Department of Justice, 950 Pennsylvania Avenue NW, Washington, DC, at 2:00 p.m.
“The goals of the Jackson-Nash Address series are to recognize the contributions of former Supreme Court Justice Robert H. Jackson and Nobel Laureate economist John Nash, and to honor the speaker, recognizing and celebrating the role of economics in the mission of the Division,” said Assistant Attorney General Makan Delrahim. “Professor Roth’s important contributions to game theory and market design make him an exemplary inaugural speaker.”
Justice Jackson served as Assistant Attorney General of the Antitrust Division prior to his appointment to the Supreme Court. During his tenure at the Division, he set the stage for the expanded role of economics in antitrust, replacing vague legal standards with the “protection of competition” as the goal of antitrust law.
Professor John Nash’s research has provided the Division’s economists with the analytic tools necessary to protect competition. In particular, Professor Nash’s strategic theory of games and his axiomatic bargaining model have had a profound effect on the Division’s enforcement mission. The Division’s economists commonly rely on these theories to guide investigations and to help evaluate the effects of mergers, monopolization, and collusion.Non-Division attendees must enter through the entrance between 10th and Constitution Avenue, NW, and clear building security. Any inquiries regarding security and logistics should be directed to Jeremy Edwards in the Office of Public Affairs at (202) 514-2007 or [email protected].
Department of Justice Files Denaturalization Complaint Against Diversity Visa Recipient Who Transferred Non-Profit Funds to Specially Designated Global TerroristRead the Press Release
The Department of Justice today filed a complaint to revoke the naturalization of a Sudan native—who entered the United States on an F-1 student visa and gained lawful permanent resident status through the diversity visa lottery program—for violating and conspiring to violate sanctions imposed against Iraq under the International Emergency Economic Powers Act (IEEPA), as well as obstructing Internal Revenue laws.
According to the complaint, Mubarak Ahmed Hamed violated and conspired to violate sanctions imposed against Iraq under the IEEPA from 1997 through July 21, 2000, the date of his naturalization. As the Executive Director of a non-profit organization, the Islamic American Relief Agency (IARA), Hamed regularly authorized and transferred tax-exempt funds from IARA accounts in the United States to an account in Jordan controlled by Khalid Al-Sudanee, a/k/a Khalid Ahmad Jumah Al-Sudani, knowing that Al-Sudanee would transport such funds into Iraq.
In 2004, both Al-Sudanee and IARA were designated by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) as Specially Designated Global Terrorists (SDGT). During this time, the IARA implemented projects that were funded by USAID, however there are no specific allegations that such funding was siphoned to Iraq or in violation of the IEEPA.
On June 25, 2010, Hamed pleaded guilty to conspiring to illegally transfer more than $1 million to Iraq in violation of federal sanctions, and to obstructing administration of the laws governing tax-exempt charities. Hamed was sentenced to four years and 10 months in federal prison on January 11, 2012.
On Jan. 16, 2018, the Departments of Justice and Homeland Security jointly released the “Section 11 Report,” which shined a light on the nation’s current immigration system and how it can be used to undermine national security and public safety. The report revealed—among other statistics—that nearly three out of every four individuals convicted of international terrorism-related charges in U.S. federal courts between Sept. 11, 2001 and Dec. 31, 2016 were foreign-born.
“This alleged denaturalization case is indicative that America needs this reform to our broken immigration system now more than ever. Under the guise of running a non-profit to assist in the famine crises in Africa, a ‘Diversity Visa’ recipient allegedly transferred funds on a regular basis to a known terrorist, undermining our nation’s lawful immigration system, public safety, and national security,” said Attorney General Jeff Sessions. “Immigration is a national security issue, and a merit-based immigration system would better serve our national interest because it would benefit the American people.”
“The defendant has pleaded guilty to despicable crimes, including the funneling of money to a known terrorist organization, from 1997 through his naturalization as a U.S. citizen in July 2000, all while conveniently failing to disclose his nefarious activities," said Thomas Homan, Deputy Director of U.S. Immigration and Customs Enforcement. "Plain and simple, if you defraud the U.S government during the naturalization process, you risk having your citizenship revoked.”
“Every visa decision is a national security decision that affects individual Americans. We commend the work of the Department of Justice and look forward to continued coordination with the Department of Homeland Security and the intelligence and law enforcement communities to protect our nation’s borders,” said Assistant Secretary Carl Risch of the Department of State Bureau of Consular Affairs. “Continued efforts to improve interagency security vetting for visa applicants will enhance our ability to identify persons who mean us harm and prevent their entry into the United States.”
U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), ICE Office of the Principal Legal Advisor (OPLA), and Civil Division’s Office of Immigration Litigation, District Court Section’s (OIL-DCS) National Security and Affirmative Litigation Unit (NS/A Unit) investigated the case. The case is being litigated by the NS/A Unit with support from ICE OPLA and the U.S. Attorney's Office for the Western District of Missouri.
The claims made in the complaint are allegations only, and there have been no determinations of liability.
School Bus Company Owners Sentenced to Prison for Bid Rigging and Fraud Involving Puerto Rico Public School Bus ServicesRead the Press Release
Four owners of school bus transportation companies were sentenced today for participating in bid rigging and fraud conspiracies related to school bus transportation contracts in Puerto Rico, the Department of Justice announced.
Gavino Rivera Herrera, Luciano Vega Martínez, Alfonso Gonzalez Nevarez, and René Garay Rodríguez were convicted after trial in 2017 in the U.S. District Court for the District of Puerto Rico in San Juan. The jury found that they conspired to rig bids and allocate the market for public school bus transportation contracts in the municipality of Caguas from approximately August 2013 until May 2015. Each was also found guilty of conspiracy to commit mail fraud and four counts of mail fraud for defrauding the municipality of Caguas to obtain contracts for school bus transportation services.
For their roles in the collusive and fraudulent conduct, defendants Vega Martínez, Gonzalez Nevarez, and Garay Rodríguez were each sentenced to serve 12 months and a day in prison. Defendant Rivera Herrera was sentenced to a term of two years’ probation, the first six months to be served in home confinement, after a departure based on the defendant’s medical condition. Restitution will be imposed in an amount to be decided at a later date.
“These transportation company owners lined their own pockets with public funds that were intended to provide essential services to at-risk school districts,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The sentences imposed today reflect the serious harm caused by the actions of the defendants who enriched themselves at the expense of schoolchildren and American taxpayers.”
As proved during the trial, the four school bus company owners carried out the conspiracy by agreeing to allocate contracts for transportation routes awarded by the Municipality of Caguas. Trial evidence showed that the conspirators submitted fraudulent certifications and received award letters by certified mail in connection with their conspiracy to defraud the Municipality of Caguas.
Today’s sentencings are the result of a federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in Puerto Rico’s school bus transportation services industry. The investigation was conducted by the Antitrust Division’s Washington Criminal I Section, the District of Puerto Rico U.S. Attorney’s Office, the FBI’s Puerto Rico Field Office, and the U.S. Department of Education Office of Inspector General. Anyone with information in connection with this or related conduct is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Puerto Rico Field Office at 787-754-6000.
New York Man Sentenced to 87 Months for Multi-State Biodiesel Fraud SchemeRead the Press Release
Andre Bernard, 65, of Mount Kisco, NY was sentenced to 87 months in federal prison for conspiracy to commit wire fraud, making false statements related to the Clean Air Act, and his participation in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel credits and fraudulently claiming tax credits. As part of his sentence, the court also entered a money judgment in the amount of $10.5 million, the amount of proceeds of the charged criminal conduct that the defendant personally received. Two accounts already seized from the defendant worth in excess of $1.5 million will be credited against the money judgment.
Andre Bernard was found guilty on August 2, 2017.According to court documents, Bernard and his co-conspirators operated entities that purported to purchase renewable fuel, on which credits had been claimed and therefore was ineligible for additional credits, produced by their co-conspirators at Gen-X Energy Group (Gen-X), headquartered in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC), located in Dublin, Georgia. They then used a series of false transactions to transform the fuel back into feedstock needed for the production of renewable fuel, and sold it back to Gen-X or SRC, allowing credits to be claimed again. This cycle was repeated multiple times.
“Today’s sentencing shows that the Department of Justice will continue to vigorously prosecute those who defraud the federal government and the American taxpayer through unlawful schemes,” said Acting Assistant Attorney General Wood. “We applaud the work of DOJ, EPA, and our other federal law enforcement partners that sought and obtained justice in this case.”
“We will not tolerate environmental fraud in the Renewable Fuels Program, or anywhere else.” said EPA Administrator Scott Pruitt. “This case highlights EPA's resolve in working with partners, nationally, to hold bad actors accountable."
“The successful prosecution of these fraudsters is a testament to our commitment to combat crime at every level,” said U.S. Attorney Chapa Lopez. “We will continue to support our investigative partners in dismantling such criminal schemes.”
“Fraud against the United States and its citizens will continued to be targeted by the Secret Service,” said Resident Agent in Charge Jeff Kelly with the U.S. Secret Service. “These complex investigations are only successfully accomplished with the dedication and partnership of our partner agencies and the U.S. Attorney Office in bringing accountability.”
From March 2013 to March 2014, the co-conspirators, including Bernard, generated at least 60 million credits that were based on fuel that was either never produced or was merely re-processed at the Gen-X or SRC facilities. The co-conspirators received at least $42 million from the sale of these fraudulent credits to third parties. In addition, Gen-X received approximately $4.3 million in false tax credits for this fuel.
This case was investigated by the U.S. Secret Service, the Environmental Protection Agency’s Criminal Investigation Division, and the Internal Revenue Service’s Criminal Investigation. It was prosecuted by Trial Attorney Adam Cullman of the Justice Department’s Environment and Natural Resources Division and Assistant United States Attorneys Sara C. Sweeney and Megan Kistler.
Home Furnishings Resource Group Inc. Agrees to Pay $500,000 to Settle False Claims Act Allegations Relating to Evaded Customs DutiesRead the Press Release
The Department of Justice announced today that Home Furnishings Resource Group Inc. (HFRG) has agreed to pay $500,000 to resolve allegations that it violated the False Claims Act by making false statements on customs declarations to avoid paying antidumping duties on wooden bedroom furniture imported from the People’s Republic of China (PRC). HFRG, which also operates under the name Function First Furniture, imports, among other things, bedroom furniture that is sold for use in university student housing. The company is headquartered in Hermitage, Tennessee.
“The customs laws are intended to protect domestic companies and American workers from unfair foreign competition,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This settlement shows our commitment to pursue those who violate these laws and gain an illegal advantage in U.S. markets by evading the import duties owed on foreign-made goods.”
The settlement announced today resolves allegations that HFRG evaded antidumping duties owed on wooden bedroom furniture that the company imported from the PRC between 2009 and 2014, by misclassifying the furniture as non-bedroom furniture on its official import documents. Antidumping duties protect against foreign companies “dumping” products on the U.S. market at prices below cost. The Department of Commerce assesses, and the U.S. Department of Homeland Security’s Customs and Border Protection (CBP) collects, these duties to protect U.S. businesses and level the playing field for domestic products. Imports of PRC-made wooden bedroom furniture have been subject to antidumping duties since 2004. At the time of the alleged conduct in this case, wooden bedroom furniture from the PRC was subject to a 216 percent antidumping duty; non-bedroom furniture was not subject to any antidumping duty.
“CBP is committed to ensuring a level playing field for all American businesses,” said Brenda Smith, Executive Assistant Commissioner, Office of Trade, CBP. “We work with our federal partners to hold accountable those looking to circumvent U.S. trade laws.”
The settlement with HFRG resolves a lawsuit filed in the Western District of Texas by University Loft Company, a competitor of HFRG, under the whistleblower provision of the False Claims Act. The act permits private parties to sue on behalf of the United States those who falsely claim federal funds or, as in this case, who avoid paying funds owed to the government. The act also allows the whistleblower to receive a share of any funds recovered. As part of today’s resolution, University Loft Company will receive approximately $75,000.
The investigation was handled by the Department of Justice Civil Division, Commercial Litigation Branch, with assistance from CBP and the Department of Commerce International Trade Administration.
The lawsuit is captioned United States ex rel. University Loft Company, L.P. v. Home Furnishings Resource Group, Inc., et al., Case No. 15-CV-646 (W.D. Tex.). The claims resolved by this settlement are allegations only; there has been no determination of liability.
Justice Department Seeks to Shut Down Wichita Tax Return PreparerRead the Press Release
A tax return preparer in the Wichita, Kansas, area prepares fraudulent tax returns for her customers, according to a new civil lawsuit filed by the Justice Department today. The suit, filed in federal court in Wichita, Kansas, asks the court to permanently bar Ma Guadalupe Valenzuela (a/k/a Maria Guadalupe Valenzuela a/k/a Lupe Valenzuela, individually and doing business as Servicio de Income Tax) from preparing federal tax returns for others. The government also asks the court to order Valenzuela to turn over the names of customers for whom she has prepared federal tax returns since 2012.
The complaint alleges that the defendant unlawfully understates her customers’ income tax liabilities and overstates these customers’ refunds. According to the complaint, Valenzuela unlawfully prepares federal tax returns that lowers her customers’ federal tax liabilities by claiming bogus child tax credits, improper dependency exemptions, and false filing statuses.
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 2017 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.
El Departamento de Justicia Busca Dar por Terminadas las Operaciones de una Preparadora de Declaraciones de Impuestos Sobre la Renta de WichitaRead the Press Release
WASHINGTON – Una preparadora de declaraciones de la renta del área de Wichita, Kansas, prepara declaraciones de impuestos fraudulentas para sus clientes, según un nuevo litigio civil presentado hoy por el Departamento de Justicia. El litigio, presentado ante un tribunal federal de Wichita, Kansas, pide al tribunal prohibir permanentemente a Ma. Guadalupe Valenzuela (alias Maria Guadalupe Valenzuela, alias Lupe Valenzuela, individualmente y como empresa de Servicio de Impuestos sobre la Renta) preparar declaraciones de impuestos federales para otros. El gobierno también pide al tribunal que ordene a Valenzuela entregar los nombres de los clientes para los que ha preparado declaraciones de impuestos federales desde 2012.
La denuncia alega que la acusada subestima ilegalmente las responsabilidades fiscales de sus clientes y sobrestima sus reintegros. Según la denuncia, Valenzuela prepara ilegalmente declaraciones de impuestos federales que subestiman las responsabilidades fiscales federales de sus clientes al demandar créditos tributarios incorrectos por niños, exenciones de dependencia indebidas y estados civiles falsos a efectos impositivos.
El IRS dispone de una lista de medidas en su sitio web que usted puede tomar ahora en anticipación a su declaración de impuestos federales de 2017. Los fraudes de los preparadores de declaraciones de impuestos son una de las Doce estafas tributarias más comunes de 2017 del IRS y los contribuyentes que estén buscando un preparador de declaraciones de impuestos deben actuar con cautela. El IRS da algunos consejos en su sitio web para escoger a un preparador de declaraciones de impuestos y ha inaugurado un directorio gratuito de preparadores de declaraciones de impuestos federales.
En la última década, la División de Impuestos ha dictado medidas cautelares contra cientos de preparadores de declaraciones de impuestos inescrupulosos. La información sobre estos casos está disponible en el sitio web del Departamento de Justicia. En esta página figura una lista, por orden alfabético, de las personas a las que se ha prohibido preparar declaraciones tributarias y promover estrategias fiscales. Si cree que una de las personas o las empresas a las que se ha impuesto esta prohibición puede estar violando una orden judicial, sírvase ponerse en contacto con la División de Impuestos indicando los detalles.
Justice Department and Federal Trade Commission Officials Meet with Chinese Anti-Monopoly Agencies in BeijingRead the Press Release
Assistant Attorney General Makan Delrahim of the U.S. Department of Justice’s Antitrust Division and Acting Chairman Maureen Ohlhausen of the Federal Trade Commission participated in high-level bilateral meetings with officials responsible for China’s three anti-monopoly agencies: Vice Chairman Hu Zucai and Director General Zhang Handong of the National Development and Reform Commission (NDRC), Assistant Minister Li Chenggang and Director General Wu Zhenguo of the Ministry of Commerce (MOFCOM), and Vice Minister Wang Jiangping and Director General Yang Hongcan of the State Administration for Industry and Commerce (SAIC). NDRC Chairman He Lifeng welcomed Assistant Attorney General Delrahim and Acting Chairman Ohlhausen to NDRC before the meetings.
The meetings took place this week in Beijing, China, where participating agencies discussed their ongoing work to ensure fair and effective antitrust enforcement and increased cooperation between the agencies. The meetings covered a wide range of topics, including enforcement and policy developments and priorities, the treatment of intellectual property, and future opportunities for cooperation. In addition, the agencies exchanged views on the role of sound and effective procedures in competition enforcement and the importance of competition advocacy in promoting innovation. The meetings will continue today and tomorrow, with separate meetings between U.S. antitrust enforcers and each of the three Chinese agencies.
Following the high-level bilateral meetings, Assistant Attorney General Delrahim spoke on competition, intellectual property and economic prosperity at an event co-hosted by the China Intellectual Property Law Society, the Peking University Intellectual Property Alumni Association, and the U.S. Embassy in Beijing. Assistant Attorney General Delrahim discussed the importance of strong IP protections to a successful and vibrant economy, and shared his views regarding how competition enforcement should be calibrated to maximize innovation for the benefit of consumers. He also addressed the role of international engagement in enhancing innovation and competition, and discussed his hopes for continued engagement between the United States and China on these issues.
The U.S. delegation’s visit to China is the fourth occasion for joint, high-level meetings between the agencies since the Justice Department and the FTC signed an antitrust memorandum of understanding (MOU) with the Chinese antitrust agencies on July 27, 2011. The MOU is designed to promote communication and cooperation between the U.S. and Chinese antitrust enforcement agencies, and provides for periodic high-level consultations.
Department of Justice Announces Settlement with Z Street over Improper IRS TreatmentRead the Press Release
The Department of Justice today announced that it has entered into a settlement with Z Street, a non-profit corporation dedicated to educating the public about various issues related to Israel and the Middle East, pending approval by the United States District Court for the District of Columbia. Z Street alleged that the Internal Revenue Service (IRS) applied heightened scrutiny to applications for tax-exempt status received from organizations connected in any way to Israel, and applied this policy to Z Street’s application, resulting in delay. The settlement agreement includes an apology from the IRS to Z Street for the delayed processing of the group’s application for tax-exempt status.
“Tax exemption eligibility should be based on whether an organization’s activities fulfill requirements of the law, not a group’s policy positions or the name chosen to reflect those views,” said Principal Deputy Assistant Attorney General Zuckerman. “The attorneys at the Department of Justice work hard to ensure that all Americans receive equal treatment under the law. Today’s settlement further illustrates this commitment.”
This is the final settlement in a series of cases brought by groups alleging that their tax-exempt status was delayed by the IRS based on inappropriate criteria, including names and policy positions. The United States District Court for the District of Columbia recently approved settlement agreements in Linchpins of Liberty v. United States and True the Vote v. IRS. In Norcal Tea Patriots v. IRS, the United States agreed to a settlement in this class action lawsuit which is currently pending approval in the United States District Court for the Southern District of Ohio. In Freedom Path v. IRS, the United States entered into a settlement resolving a wrongful disclosure claim and dismissing other claims, including allegations of improper IRS targeting. A single regulatory challenge remains following the settlement. Freedom Path lost this challenge at the District Court and the issue is currently on appeal to the Fifth Circuit.
Announcement and quote from Attorney General Jeff Sessions in Linchpins of Liberty v. United States and Norcal Tea Patriots v. IRS can be found here.
Justice Department Announces Religious Liberty Update to U.S. Attorneys’ Manual and Directs the Designation of Religious Liberty Point of Contact for All U.S. Attorney's OfficesRead the Press Release
The Department of Justice today announced the update of the United States Attorneys’ Manual (USAM) with a new section titled, “Associate Attorney General’s Approval and Notice Requirements for Issues Implicating Religious Liberty.”
On Oct. 6, 2017, the Attorney General issued a Memorandum for All Executive Departments and Agencies entitled Federal Law Protections for Religious Liberty. The memo directed components and United States Attorney’s Offices to use the guidance in litigation, advice to the Executive Branch, operations, grants, and all other aspects of the Department’s work.
In order to ensure compliance with the Attorney General’s memo, the USAM will be updated with language that directs relevant Department of Justice components to:
- Immediately inform the Office of the Associate Attorney General upon receiving service of a suit filed against the United States raising any significant question concerning religious liberty;
- Coordinate decisions about merits arguments and significant litigation strategy questions in religious liberty cases with the Office of the Associate Attorney General; and
- Obtain the approval of the Office of the Associate Attorney General with respect to any affirmative civil suit that impinges on rights under the Free Exercise Clause, Establishment Clause, or Religious Freedom Restoration Act.
The updated USAM will also instruct relevant Justice Department components to consult the 20 religious liberty principles laid out in the Attorney General’s October 6 memo when considering whether the notice or approval requirements are initiated.
In order to fully effectuate the approval and notice requirements in the updated USAM, the Department will instruct all U.S. Attorneys to designate a point of contact to lead these efforts for their office.
“Religious liberty is an inalienable right protected by the Constitution, and defending it is one of the most important things we do at the Department of Justice,” said Associate Attorney General Rachel Brand.
At President Trump's direction, Attorney General Sessions issued a robust and clear guidance document in October that clearly explains how the federal government is to apply the religious liberty protections currently on the books. The requirement that each of the U.S. Attorney offices designate a religious liberty point of contact will ensure that the Attorney General’s Memorandum is effectively implemented. The designees will be responsible for working directly with the leadership offices on civil cases related to religious liberty, ensuring that these cases receive the rigorous attention they deserve.
Former Detroit-Based Technology Company CEO Indicted for Multi-Year Bribery SchemeRead the Press Release
The former chief executive officer of FutureNet Group Inc., a Detroit-based information technology company, was indicted yesterday for his role in orchestrating a scheme to bribe an official from the City of Detroit to obtain benefits for FutureNet, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
Parimal D. Mehta, 54, of Northville, Michigan, is charged in an 11-count indictment filed in the Eastern District of Michigan with five counts of honest services mail and wire fraud, one count of federal program bribery, and five counts of unlawfully using interstate facilities to commit bribery under Michigan law.
According to the indictment, from 2009 through August 2016, Mehta made multiple cash payments to Charles L. Dodd, the former Director of Detroit’s Office of Departmental Technology Services, including two cash bribes hand-delivered by Mehta to Dodd in the restrooms of Detroit-area restaurants in 2016. Mehta is also alleged to have employed Dodd’s family members at FutureNet and its subsidiaries. Dodd previously pleaded guilty to bribery on Sept. 27, 2016.
The indictment alleges that Mehta paid these bribes to Dodd in exchange for preferential treatment for his company, FutureNet, which received approximately $7.5 million from Detroit in 2015 and 2016. According to the indictment, Mehta and FutureNet benefitted from Dodd’s influence over the administration of city contracts, expenditures under those contracts, and the hiring and selection of contract personnel. The indictment further alleges that Mehta obtained confidential information about Detroit’s internal budgets for specific technology projects.
The charges and allegations contained in the indictment are merely allegations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI’s Detroit Division. Trial Attorneys Robert J. Heberle and James I. Pearce of the Criminal Division’s Public Integrity Section are prosecuting the case.
Attorney General Sessions Announces DEA Surge to Combat Prescription Drug DiversionRead the Press Release
Attorney General Jeff Sessions announced yesterday that, over the next 45 days, the Drug Enforcement Administration (DEA) will surge Special Agents, Diversion Investigators, and Intelligence Research Specialists to focus on pharmacies and prescribers who are dispensing unusual or disproportionate amounts of drugs. To intensify the fight against prescription drug diversion, DEA will utilize data from approximately 80 million transaction reports it collects every year from prescription drug manufacturers and distributors. DEA will aggregate and analyze this data, which includes distribution figures and inventory of prescription drugs, to identify patterns, trends, and statistical outliers that can be developed into targeting packages.
“Our country is in the midst of a drug abuse crisis, enabled and worsened by rampant drug trafficking and prescription drug diversion,” said Attorney General Jeff Sessions. “This surge of resources by the Drug Enforcement Administration will help us make more arrests, secure more convictions, and reduce the number of diverted or unnecessary prescription drugs causing addiction and overdose.”
The surge announced yesterday is the latest in a series of efforts by the Department of Justice to turn the tide of the opioid epidemic and reduce the inevitable violent crime that accompanies widespread drug trafficking. In August, the Department announced a new data analytics program, the Opioid Fraud and Abuse Detection Unit, which uses data to identify and prosecute individuals who are contributing to the opioid epidemic. The Department has also assigned experienced prosecutors to opioid hot spot districts to focus solely on investigating and prosecuting opioid-related health care fraud, and the DEA has reorganized its field divisions for the first time in nearly 20 years to increase its effectiveness nationwide.
Read Attorney General Sessions’ complete remarks here.Attorney General Issues National Slavery and Human Trafficking Prevention Month ProclamationRead the Press Release
Attorney General Jeff Sessions issued the following proclamation commemorating January as National Slavery and Human Trafficking Prevention Month:
“Human trafficking is a nationwide public health and civil rights crisis. Its victims are everywhere: at truck stops, in cities, in rural areas, and in suburbs, and who now total an unconscionable 25 million victims globally according to some estimates. That means 25 million human beings—parents, siblings, and children—have been coerced into a commercial sex act, forced into labor, or exploited because they desperately seek a better life. It is a priority of the Department of Justice to combat this depraved and predatory behavior through swift and aggressive enforcement of our nation’s laws to bring traffickers to justice and restore the lives of victims and survivors.
“The Justice Department’s U.S. Attorneys’ Offices, working closely with the Federal Bureau of Investigation (FBI), other federal agencies, and our state, local, and tribal partners, are on the front lines, leading our shared fight against human trafficking in all its forms. These entities are supported by the Department’s Civil Rights Division which is home to a team of dedicated investigators and prosecutors—the Human Trafficking Prosecution Unit (the HTPU)—tasked with bringing human traffickers to justice and vindicating the rights of their victims. Additionally, the Department’s Criminal Division includes the Child Exploitation and Obscenity Section (CEOS), which is committed to harnessing expertise in attacking the technological and systemic challenges that are involved in the sexual exploitation of minors, as well as other specialized prosecution teams who bring expertise in organized crime and money laundering.
“Our efforts have produced high-impact prosecutions to dismantle transnational organized human trafficking enterprises, have launched interagency anti-trafficking initiatives with unprecedented momentum, and have vindicated the rights and freedoms of countless victims and survivors.
“These efforts resulted in the conviction of nearly 500 defendants in trafficking cases in fiscal year 2017, and making $47 million available to help trafficking survivors. Last fall, the FBI—along with state and local task forces and international law enforcement partners—recovered 84 minors and arrested 120 traffickers, as part a single week-long operation. However, we are keenly aware that many challenges lie ahead and we are committed to taking our efforts to the next level.
“In his Presidential Proclamation, President Trump asked us to ‘recommit ourselves to eradicating the evil of enslavement’ and to ‘pledge to do all in our power to end the horrific practice of human trafficking.’ In the spirit of the President’s request, the Justice Department is hosting a Human Trafficking Summit in Washington, D.C. on February 2, 2018, two days before Super Bowl LII. The Super Bowl provides an opportunity to raise awareness of the surge in commercial sex activity around major sporting events, and of our commitment to finding and protecting sex trafficking victims who are at risk of being compelled, coerced, or exploited as minors in that context.
“The Human Trafficking Summit will be led by Associate Attorney General Rachel Brand and will convene law enforcement, victim support organizations, and the business community to focus on enhancing the strong partnerships behind all successful anti-trafficking efforts and identifying opportunities to increase collaboration and coordination as we take on new challenges.
“There is no room in a civilized society for those who choose to violate an individual’s rights and freedoms by subjecting them to any form of human trafficking. To those that still make that choice: make no mistake, the Justice Department will use every lawful tool to uncover your illegal activity and bring you to justice.”
INTERPOL Washington Participates in 2018 SORNA WorkshopRead the Press Release
Courtesy Office of Justice Programs, SMART Office. Panel members discuss information sharing and enforcement strategies during the 2017 SORNA workshop.INTERPOL Washington—the U.S. National Central Bureau—participated in the 2018 Sex Offender Registration and Notification Act (SORNA) Workshop, held January 9-10, in Albuquerque, New Mexico. The workshop brought together approximately 200 sex offender registry officials to participate in working groups, presentations, and panel discussions designed to assist U.S. states, tribes, and territories to improve sex offender registration and notification in their areas. It was sponsored by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART) in the Office of Justice Programs. Other participants included faculty from the U.S. Marshals Service’s National Sex Offender Targeting Center; the FBI DNA Laboratory; FBI-Criminal Justice Information Services; and state, territory, and tribal representatives.
INTERPOL Washington Supervisory Investigative Analyst Michelle Ford-Stepney along with representatives from the Bureau of Indian Affairs, Administrative Office of the U.S. Courts, and the U.S. Marshals Services participated in a panel on “Information Sharing: Enforcement Strategies.” The panel encompassed registration requirements once an offender is released from custody as well as federal enforcement efforts. Ford-Stepney explained INTERPOL’s role in supporting implementation of SORNA, speaking specifically on the dissemination of sex offender notifications and the Green Notice program.
Under SORNA Supplemental Guidelines, registered sex offenders are required to inform their residence of jurisdiction of any intended travel outside of the United States at least 21 days prior to their departure. The registration jurisdiction collects the information about the offender’s intended international travel and sends that information to the U.S. Marshals Service’s National Sex Offender Targeting Center, which, in turn, reviews and forwards it to INTERPOL Washington for foreign country notification. INTERPOL Washington uses Green Notices to provide information to warn law enforcement organizations in INTERPOL member countries about subjects who are a possible threat to public safety or may commit a criminal offense, including those subjects who have been registered under SORNA.
“These workshops are a great opportunity for officials to come together to share information to improve our tracking and monitoring of sex offenders. Our work to support SORNA is one of a number of areas INTERPOL Washington supports to combat the exploitation of children,” said Ford-Stepney. INTERPOL Washington supports domestic law enforcement agencies by providing investigative assistance and serving as a dedicated channel for exchanging intelligence with INTERPOL member countries to counter the transnational, mobile, and clandestine nature of the criminal organizations and violators who commit human trafficking offenses. The agency also works with domestic and foreign law enforcement authorities, as well as non-government organizations, to locate missing and abducted children, combat child sex tourism, track the international movements of registered and non-compliant sex offenders, and end the production and distribution of child sexual exploitation images worldwide.
SORNA refers to the Sex Offender Registration and Notification Act, which is Title I of the Adam Walsh Child Protection and Safety Act of 2006 (Public Law 109-248). SORNA provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. SORNA aims to close potential gaps and loopholes that existed under prior law and generally strengthens the nationwide network of sex offender registration and notification programs. Additionally, SORNA:•Extends the jurisdictions in which registration is required beyond the 50 states, the District of Columbia, and the principal U.S. territories, to include federally recognized Indian tribes.
•Incorporates a more comprehensive group of sex offenders and sex offenses for which registration is required.
•Requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
•Requires sex offenders to provide more extensive registration information.
•Requires sex offenders to make periodic in-person appearances to verify and update their registration information.
•Expands the amount of information available to the public regarding registered sex offenders.
•Makes changes in the required minimum duration of registration for sex offenders.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.Attorney General Sessions Announces New Tool to Fight Online Drug TraffickingRead the Press Release
Attorney General Jeff Sessions today announced a new resource to help federal law enforcement disrupt online illicit opioid sales, the Joint Criminal Opioid Darknet Enforcement (J-CODE) team.
“Criminals think that they are safe on the darknet, but they are in for a rude awakening,” Attorney General Sessions said. “We have already infiltrated their networks, and we are determined to bring them to justice. In the midst of the deadliest drug crisis in American history, the FBI and the Department of Justice are stepping up our investment in fighting opioid-related crimes. The J-CODE team will help us continue to shut down the online marketplaces that drug traffickers use and ultimately that will help us reduce addiction and overdoses across the nation.”
J-CODE will more than double the FBI’s investment in fighting online opioid trafficking. The FBI is dedicating dozens more Special Agents, Intelligence Analysts, and professional staff to J-CODE so that they can focus on this one issue of online opioid trafficking.
In July 2017, Attorney General Sessions announced the seizure of the largest dark net marketplace in history. This site hosted some 220,000 drug listings and was responsible for countless synthetic opioid overdoses, including the tragic death of a 13 year old.
In August 2017, Attorney General Sessions ordered the creation of a new data analytics program, the Opioid Fraud and Abuse Detection Unit, to focus specifically on investigating opioid-related health care fraud. The same day, he assigned a dozen prosecutors to “hot spot” districts—where opioid addiction is especially prevalent—to focus solely on investigating and prosecuting opioid-related health care fraud.
In November, Attorney General Sessions ordered all 94 U.S. Attorney offices to designate an opioid coordinator who will customize federal law enforcement’s anti-opioid strategy in their district.
Former Major at Angola Prison Convicted of Federal Obstruction Offenses in Connection with Beating of Handcuffed and Shackled InmateRead the Press Release
A former Major at Louisiana State Penitentiary (LSP) in Angola, Louisiana, was found guilty yesterday in federal court for conspiring to cover up the beating of a handcuffed and shackled inmate, and for writing a false report, falsifying official records, and lying under oath about what happened.
After four days of trial, a jury convicted Daniel Davis, 41, of Loranger, Louisiana, on four charges related to the cover up. The jury heard evidence that Davis and three other supervisory officers used excessive force against an inmate who was shackled and handcuffed. The other three officers -- former Captains James Savoy, 39, John Sanders, 30, and Scotty Kennedy, 49 -- had all previously pleaded guilty to various federal charges related to the beating and the conspiracy to cover it up. At Davis’s trial, two of the Captains testified for the government and described the abuse and the extensive obstruction of justice.
After hearing testimony over the course of three days, the jury convicted Davis on all four counts related to the cover up of the beating. The evidence showed that Davis and the other officers conspired to cover up an incident in which the officers had repeatedly punched, kicked, and stomped an inmate, causing serious injury including a bloody gash under his eye, a dislocated shoulder, broken ribs, and a collapsed lung. The extensive cover up included lying to investigators, writing false reports, and fabricating prison documents to provide a false alibi for some of the participants.
The jury convicted Davis of conspiring with other officers to obstruct justice; obstructing justice by writing a false report; obstructing justice by corruptly persuading his subordinates to lie; and committing perjury by lying under oath in a federal civil deposition. The jury acquitted Davis on one charge of violating the rights of the inmate by beating him, and failed to reach a unanimous verdict on a second charge related to the beating. The government has not announced whether it intends to re-try the defendant on the count for which there was no verdict.
“As a Major at Angola, defendant Davis had been entrusted with great power, which he grossly abused by perverting the justice system by lying, writing false reports, and using his influence to encourage others to lie,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to vigorously prosecute correctional officers who violate the public’s trust by committing crimes and to covering up violations of federal criminal law.”
“Justice was served today,” said Acting U.S. Attorney Corey R. Amundson. “Although most corrections officers are good and honest public servants doing an enormously challenging and important job, Defendant Davis chose instead to become a criminal himself. His actions were unjustifiable, intolerable, and criminal. Our office remains steadfast in holding accountable those who violate the federal criminal civil rights laws and this prosecution of four high-ranking Angola corrections officers should illustrate that point very clearly. I greatly appreciate the dedication and hard work of the FBI and the prosecutors from my office and the Civil Rights Division who handled this important matter.”
This case was investigated by the FBI’s Baton Rouge Resident Agency Office and was tried by Trial Attorneys Christopher J. Perras and Zachary Dembo of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Frederick A. Menner, Jr., of the Middle District of Louisiana.
Former Missouri Elected Official and His Chief of Staff Plead Guilty to Conspiracy to Commit Wire FraudRead the Press Release
The former County Executive for Jackson County, Missouri and his former chief of staff pleaded guilty today to conspiracy to defraud political campaign funds, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
Michael Sanders, 50, of Independence, Missouri, and Calvin Williford, 60, of St. Joseph, Missouri, each pleaded guilty to one count of conspiracy to commit wire fraud before U.S. District Judge Roseann A. Ketchmark of the Western District of Missouri.
According to admissions made in connection with their pleas, Sanders was the elected County Executive for Jackson County from January 2007 until December 2015. Prior to serving as County Executive, Sanders was the elected Prosecuting Attorney for Jackson County. Williford was a senior staff member for Sanders, and then later chief of staff, in the Office of the County Executive from 2007 to December 2015. Prior to then, Williford served as Sanders’s Director of Public Affairs at the Jackson County Prosecuting Attorney’s Office. Sanders and Williford defrauded political committees with which Sanders was affiliated by converting campaign contributions for their personal use. Sanders and Williford misappropriated the money by directing the political committees to issue checks to certain individuals who performed little or no campaign-related work. Instead, the individuals cashed the checks and then returned a portion of the money to Sanders or Williford, who used the cash at times to pay for personal expenses.
The case was investigated by the FBI’s Kansas City Division. The case is being prosecuted by Trial Attorneys Lauren Bell and Edward P. Sullivan of the Criminal Division’s Public Integrity Section.
Former Hadley Police Officer Indicted for Unreasonable ForceRead the Press Release
A former Hadley, Massachusetts, Police Officer was arrested today and charged in federal court in Springfield in connection with using unreasonable force during an arrest.
Christopher M. Roeder, 48, of Feeding Hills, was charged in an indictment unsealed today with one count of deprivation of rights under color of law and one count of falsification of a document. Roeder will appear in federal court in Springfield this afternoon.
According to court documents, on April 3, 2017, while acting under the color of law, Roeder deprived a male arrestee of the right to be free from an unreasonable seizure, which includes the right to be free from the use of unreasonable force by a law enforcement officer. It is alleged that during the arrest, Roeder struck the arrestee in the face - breaking the arrestee’s nose, which the arrestee would need plastic surgery to repair - without legal justification, while the arrestee was seated on a bench in the Hadley Police Department booking area.
The indictment alleges that Roeder subsequently attempted to obstruct the investigation into the assault on the arrestee by falsifying his police report describing the events that led to the assault. Roeder wrote that the defendant arrestee made an obscene comment toward Roeder and that when the arrestee was instructed to sit down, he sat down slowly, and then when Roeder attempted to handcuff the arrestee, the arrestee began to stand again. According to Roeder, he had no option but to deliver an elbow strike directly to the bridge of the arrestee’s nose in order to gain the arrestee’s compliance. Conversely, the indictment alleges that Roeder’s statements were false.
The charge of deprivation of civil rights under color of law resulting in injury provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of falsifying a police report provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the advisory U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General for the Civil Rights Division John Gore, United States Attorney Andrew E. Lelling, and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla of the District of Massachusetts’ Springfield Branch Office and Trial Attorney Timothy Visser of the Department of Justice’s Civil Rights Division are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
BNP Paribas USA Inc. Pleads Guilty to Antitrust ConspiracyRead the Press Release
BNP Paribas USA Inc. (BNPP USA), a subsidiary of BNP Paribas S.A., pleaded guilty yesterday to participating in a price-fixing conspiracy in the foreign currency exchange (FX) market, the Justice Department announced.
According to the one-count information filed yesterday in the U.S. District Court for the Southern District of New York, between September 2011 and July 2013, BNPP USA conspired to suppress and eliminate competition by fixing prices in Central and Eastern European, Middle Eastern and African (CEEMEA) currencies, in violation of the Sherman Act, 15 U.S.C. § 1. The conspiracy involved manipulation of prices on an electronic FX trading platform through the creation of non-bona fide trades, coordination of bids and offers on that platform and agreements on currency prices to quote specific customers, among other conduct.
“The Antitrust Division is committed to uncovering and prosecuting wrongdoing in all corners of the foreign currency exchange market, including this conspiracy affecting multiple emerging market currencies,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The Division’s investigation aims to root out and eradicate the manipulation that has plagued this industry.”
“This guilty plea holds BNP Paribas accountable for its corrupt price-fixing behavior which violated the integrity of the financial services industry and undermined competition,” said FDIC Inspector General Jay N. Lerner. “We are pleased to work with our law enforcement partners in combating this misconduct.”
As part of its sentence, BNPP USA has agreed to pay a criminal fine of $90 million. Both the government and BNPP USA have agreed to recommend no probation, in light of, among other factors, the bank’s substantial efforts relating to compliance and remediation. BNPP USA also has agreed to cooperate with the government’s ongoing criminal investigation into the FX market, and to report relevant information to the government.
BNPP USA’s guilty plea follows the Jan. 4, 2017 guilty plea of its former CEEMEA trader Jason Katz, and the Jan. 12, 2017 guilty plea of a former CEEMEA trader from another financial institution, Christopher Cummins. In addition, on Jan. 10, 2017, three individuals from other financial institutions – Richard Usher, Rohan Ramchandani and Christopher Ashton – were indicted for conspiring to fix prices and rig bids for U.S. dollars and euros. The charge in the indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.
BNPP USA is the sixth major bank to plead guilty as a result of the department’s ongoing investigation into antitrust and fraud crimes in the FX market. On May 20, 2015, four major banks – Citicorp, JPMorgan Chase & Co., Barclays PLC and The Royal Bank of Scotland plc – pleaded guilty at the parent level and agreed to pay collectively more than $2.5 billion in criminal fines for their participation in an antitrust conspiracy to manipulate the price of U.S. dollars and euros exchanged in the FX market. A fifth bank, UBS AG, pleaded guilty to manipulating the London Interbank Offered Rate (LIBOR) and other benchmark interest rates and agreed to pay a $203 million criminal penalty, after breaching its December 2012 non-prosecution agreement resolving the LIBOR investigation.
This antitrust investigation is being conducted by the Antitrust Division’s New York Office with the assistance of the FDIC OIG and the FBI’s Washington Field Office. The Criminal Division’s Fraud Section also provided substantial assistance in this matter.
The United States and Indiana Reach Agreement with SunCoke Energy and Cokenergy to Resolve Clean Air Act Violations at Indiana Harbor Coke PlantRead the Press Release
SunCoke Energy Inc., its subsidiary Indiana Harbor Coke Company (IHCC), and Cokenergy have agreed to resolve alleged Clean Air Act violations relating to excess emissions of coke oven gases from their coke plant in East Chicago, Indiana, announced the Department of Justice, the U.S. Environmental Protection Agency, the Office of the Indiana Attorney General, and the Indiana Department of Environmental Management.
Implementation of the Consent Decree’s requirements will result in estimated annual emissions reductions of 2,075 tons of coke oven emissions, which are hazardous air pollutants, and include 1,895 tons of SO2, 125 tons of particulate matter, 55 tons of volatile organic compounds, and 680 pounds of lead. In addition, under the settlement agreement Cokenergy will spend $250,000 on a lead abatement project in the East Chicago area to reduce lead hazards in schools, day-care centers, and other buildings with priority given to young children and pregnant women. Additionally, the companies will provide copies of reports submitted under the Consent Decree to two public libraries in East Chicago.
The settlement also requires comprehensive coke oven rebuilds to address oven leaks, including potential permanent shut down of the worst performing battery. The companies have agreed to enhanced monitoring and testing requirements, including two stack tests to measure lead emissions. Further, the settlement requires implementation of preventive maintenance and operations plans to minimize excess emissions. Finally, the companies will pay a $5 million civil penalty, to be split evenly between the United States and the State of Indiana.
“This settlement will result in significant reductions in harmful air pollution and is welcome news for East Chicago, an area which is currently not meeting national air quality standards for ozone,” said Acting Assistant Attorney General Jeffrey H. Wood. “The Justice Department’s Environment and Natural Resources Division is proud to have partnered with the EPA, the state of Indiana, and the U.S. Attorney’s Office in achieving these results. Today’s action reflects our commitment to working together to enforce environmental laws.”“Today’s settlement is one example of how EPA is committed to reducing exposure to lead and other contaminants in communities across the country,” said EPA Administrator Scott Pruitt. “Lead exposure is a serious problem and reducing it is a priority for EPA.”
“We fight every day to protect the safety of Hoosiers and their families,” Attorney General Curtis Hill of the State of Indiana said. “This agreement goes a long way to protect Hoosiers and their families in Northwest Indiana and the East Chicago community.”
“I’m grateful to have worked with our federal partners to get this issue resolved,” said Commissioner Bruno Pigott of the Indiana Department of Environmental Management. “It’s my hope that, now and in the future, this settlement will improve not only the air quality in Northwest Indiana, but also the quality of life for Hoosiers living in East Chicago.”
“This settlement provides a long-term solution to protect air quality and control emissions,” said U.S. Attorney for the Northern District of Indiana Thomas L. Kirsch II. “We will continue to work with other agencies to protect Indiana families from environmental harm.”
The primary violations alleged relate to leaking coke ovens and excessive bypass venting of hot coking gases directly to the atmosphere, resulting in excess SO2, particulate matter, and lead emissions from the facility’s coke ovens and bypass vent stacks, in violation of applicable permit limits. SO2 contributes to acid rain and exacerbates respiratory illness, particularly in children and the elderly. Exposure to particulate pollution has been linked to health impacts that include decreased lung function, aggravated asthma and premature death in people with heart or lung disease. EPA has recognized that lead poisoning is the number one environmental health threat in the United States for children ages 6 and younger. In addition, coke oven emissions are a known human carcinogen. Chronic (long-term) exposure in humans can result in conjunctivitis, severe dermatitis and lesions of the respiratory system and digestive system.
The Consent Decree, lodged in the U.S. District Court for the Northern District of Indiana, is subject to a 30-day public comment period and approval by the federal court. It is available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html.
IDEM has created a link on the agency’s website where the public will be able to access the documents that the companies submit to IDEM under the Consent Decree. Once the Consent Decree has become effective, documents submitted to IDEM will be uploaded to the dedicated link. The public will then be able to access the documents by going to: www.in.gov/idem/airquality/ and clicking the page entitled “Indiana Harbor Coke/Cokenergy Consent Decree.”
New Jersey Man Indicted for Illegal Storage and Disposal of Hazardous WasteRead the Press Release
The former owner and president of a Glassboro, New Jersey, drum reconditioning company was indicted today for allegedly illegally storing and disposing of hazardous waste, U.S Attorney Craig Carpenito and Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division of the U.S. Department of Justice, announced.
Thomas Toy, 73, of Elmer, New Jersey, was charged with one count of illegal storage and disposal of hazardous waste at the site of Superior Barrel and Drum Company Inc. (Superior) in Glassboro, New Jersey, in violation of the Resource Conservation and Recovery Act (RCRA).
According to the Indictment, Superior received drums from various industrial customers, cleaned and processed those drums, and then resold them. Toy directed and supervised the operations of Superior, including the storage and disposal of large amounts of waste – including hazardous waste – at the company’s site. Superior did not have a permit to store or dispose of hazardous waste there. From Sept. 27, 2013, to Sept. 25, 2014, the U.S. Environmental Protection Agency (EPA) conducted a removal action of waste stored at Superior’s site. Approximately 1,800 containers of waste were removed, and much of the waste was found to be hazardous. The EPA’s removal cost was $4.2 million.
Toy was charged under RCRA, which was enacted in 1976 to address a growing nationwide problem with industrial and municipal waste. The law is designed to protect human health and the environment and provided controls on the management and disposal of hazardous waste. It prohibits the treatment, storage or disposal of any hazardous waste without a permit. The charge on which Toy was indicted carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the gain or loss caused by the offense.
U.S. Attorney Carpenito credited special agents of the U.S. Environmental Protection Agency, under the direction Special Agent in Charge Tyler C. Amon, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the Health Care and Government Fraud Unit in Newark and Trial Attorney Adam Cullman of the Environmental Crimes Section of the U.S. Department of Justice.
The charge and allegations against Toy are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Justice Department Files Statement of Interest in California College Free Speech CaseRead the Press Release
The Department of Justice today filed a Statement of Interest in Young America’s Foundation and Berkeley College Republicans v. Janet Napolitano. The plaintiffs, Berkeley College Republicans (BCR) and Young America’s Foundation (YAF), allege that the University of California, Berkeley, enforced a double standard when applied to free speech. BCR alleges that UC Berkeley applied a more rigorous and highly discretionary set of rules to their organization compared to other campus groups, especially with respect to “high-profile” campus speakers.
The plaintiffs filed the lawsuit as a result of excessive hurdles BCR faced in bringing speakers of their choice onto campus. They allege that UC Berkeley’s High Profile Speaker Policy and Major Events Policy violated their rights under the First and Fourteenth Amendments.
In their lawsuit, the plaintiffs allege that Berkeley’s “High-Profile Speaker Policy” granted administrators unfettered discretion to decide which speakers are subject to arduous curfews, prohibitive security costs, or undesirable venues. In one instance, administrators—who had full discretion to determine who constituted a “high-profile speaker”—established a 3:00 pm “curfew” that conflicted with class times.
While the plaintiffs attempted to book speakers under the restrictions of the “High-Profile Speaker Policy,” a former president of Mexico and a former White House adviser were hosted at the University, but University administrators did not apply the High-Profile Speakers Policy to those events.
In filing the Statement of Interest, Associate Attorney General Rachel Brand provided the following statement:
“This Department of Justice will not stand by idly while public universities violate students’ constitutional rights.”
In addition to the statement, Associate Attorney General today penned an op-ed on the issue of campus free speech.
This is the third Statement of Interest filed by the Department of Justice in a First Amendment case under Attorney General Jeff Sessions. The first was filed on September 26, 2017 in Uzuegbunam v. Preczewski, and the second was filed on October 24, 2017 in Shaw v. Burke.
Attorney General Sessions reestablished the Department’s commitment to protecting First Amendment rights—especially campus free speech-- in a speech at Georgetown Law School in 2017.
Associate Attorney General Brand Announces End to Use of Civil Enforcement Authority to Enforce Agency Guidance DocumentsRead the Press Release
Today, as a follow-up to a memo issued by Attorney General Jeff Sessions in November, the Office of the Associate Attorney General issued a new policy that prohibits the Department of Justice from using its civil enforcement authority to convert agency guidance documents into binding rules. Under the Department’s new policy, Department civil litigators are prohibited from using guidance documents—or noncompliance with guidance documents—to establish violations of law in affirmative civil enforcement actions.
On November 17, 2017, Attorney General Jeff Sessions issued a memo prohibiting the Department of Justice from issuing guidance documents that have the effect of adopting new regulatory requirements or amending the law binding on persons or entities outside the Executive Branch. The memo prevents the Department of Justice from evading required rulemaking processes by using guidance memos to create de facto regulations. In the past, the Department of Justice and other agencies had blurred the distinction between regulations and guidance documents.
“Although guidance documents can be helpful in educating the public about already existing law, they do not have the binding force or effect of law and should not be used as a substitute for rulemaking,” Associate Attorney General Rachel Brand said. “Consistent with our duty to uphold the rule of law with fair notice and due process, this policy helps restore the appropriate role of guidance documents and avoids rulemaking by enforcement.”NOTE: The new policy can be found here.
Justice Department Demands Documents and Threatens to Subpoena 23 Jurisdictions as Part of 8 U.S.C. 1373 Compliance ReviewRead the Press Release
The Department of Justice today sent the attached letters to 23 jurisdictions, demanding the production of documents that could show whether each jurisdiction is unlawfully restricting information sharing by its law enforcement officers with federal immigration authorities.
All 23 of these jurisdictions were previously contacted by the Justice Department, when the Department raised concerns about laws, policies, or practices that may violate 8 U.S.C. 1373, a federal statute that promotes information sharing related to immigration enforcement and with which compliance is a condition of FY2016 and FY2017 Byrne JAG awards.
The letters also state that recipient jurisdictions that fail to respond, fail to respond completely, or fail to respond in a timely manner will be subject to a Department of Justice subpoena.
“I continue to urge all jurisdictions under review to reconsider policies that place the safety of their communities and their residents at risk,” said Attorney General Jeff Sessions. “Protecting criminal aliens from federal immigration authorities defies common sense and undermines the rule of law. We have seen too many examples of the threat to public safety represented by jurisdictions that actively thwart the federal government’s immigration enforcement—enough is enough.”
Failure to comply with section 1373 could result in the Justice Department seeking the return of FY2016 grants, requiring additional conditions for receipt of any FY2017 Byrne JAG funding, and/or jurisdictions being deemed ineligible to receive FY2017 Byrne JAG funding.
The following jurisdictions received the document request today:
- Chicago, Illinois;
- Cook County, Illinois;
- New York City, New York;
- State of California;
- Albany, New York;
- Berkeley, California;
- Bernalillo County, New Mexico;
- Burlington, Vermont;
- City and County of Denver, Colorado;
- Fremont, California;
- Jackson, Mississippi;
- King County, Washington;
- Lawrence, Massachusetts;
- City of Los Angeles, California;
- Louisville Metro, Kentucky;
- Monterey County, California;
- Sacramento County, California;
- City and County of San Francisco, California;
- Sonoma County, California;
- Watsonville, California;
- West Palm Beach, Florida;
- State of Illinois; and
- State of Oregon.
Virginia Business Owners Convicted of Tax EvasionRead the Press Release
A jury in the Western District of Virginia convicted two business owners of tax evasion and conspiring to structure currency transactions, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the evidence presented at trial, Jeffrey and Karen Dalton owned Blue Ridge Stainless Inc. (BRS), a subcontracting business that provided labor to renovate large retail department and grocery stores. The Daltons operated BRS out of their home in Hillsville, Virginia. The Daltons filed their 2009 through 2014 personal tax returns with the Internal Revenue Service (IRS) reporting the income earned from BRS, but failed to pay the taxes, penalties, and interest owed. Despite an IRS revenue officer repeatedly contacting the Daltons over a period of years about their delinquent taxes and pending IRS liens, the Daltons refused to pay their outstanding tax liabilities, used nominees to conceal their ownership of property, and filed false documents with the IRS. After the IRS levied the Daltons’ personal bank accounts, they used funds from the BRS business bank account to start a cattle business and pay their children’s wedding expenses.
The evidence at trial also proved that during a six-month period in 2015 the Daltons repeatedly withdrew cash from BRS’s business bank account in amounts less than $10,000 to evade federal bank-reporting requirements, thereby structuring more than $250,000 in withdrawals.
U.S. District Court Judge James P. Jones scheduled sentencing for April 24. Jeffrey and Karen Dalton face a statutory maximum sentence of five years in prison on the tax evasion and conspiracy charges. They also face a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Daniel McGraw and 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.
Two Former Tuskegee Police Lieutenants Charged with Civil Rights Offenses for Assaulting ArresteeRead the Press Release
The Justice Department today announced that two former Tuskegee Police Department lieutenants, Alex Huntley, 53, and Darian Locure, 44, have been indicted by a federal grand jury for their roles in the beating of an arrestee and an attempted cover-up.
The five-count indictment charges that on or about Dec. 24, 2014, Huntley physically assaulted an arrestee, while Locure willfully failed to intervene to stop Huntley’s assault. The assault caused the arrestee to suffer bodily injuries.
Huntley and Locure are also charged with directing and encouraging other Tuskegee Police Department officers and recruits who witnessed the assault to keep it a secret. Finally, the indictment charges that Huntley gave false testimony under oath about the assault in a state court proceeding regarding criminal charges against the arrestee.
This case is being investigated by the Federal Bureau of Investigation. The Alabama State Bureau of Investigation has also assisted the investigation. The matter is being prosecuted by Trial Attorney Samantha Trepel of the Justice Department’s Civil Rights Division and Assistant United States Attorney Denise Simpson of the United States Attorney’s Office for the Middle District of Alabama.
The charges contained in this indictment are simply accusations, and not evidence of guilt. The defendants are presumed innocent unless proven guilty.
Michigan Janitorial Company Owner Sentenced to Prison for Tax FraudRead the Press Release
A Detroit, Michigan, resident who owned a janitorial service company was sentenced to 12 months and one day in prison today for obstructing the internal revenue laws and failing to file an individual tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents and information provided to the court, from approximately 2001, Braint N. Hall owned Braint N Hall Inc., which also did business as Sunrise Janitorial Service, Sunrise Janitorial and Maintenance Inc. and Detroit Industrial Cleaners Inc. To conceal his ownership of these firms, Hall caused two relatives to establish nominee entities, which he controlled, to assume their business operations, employees, equipment, and client contracts. Despite earning income from these businesses, Hall has not filed individual or corporate income tax returns since 2010.
In approximately 2009, the Internal Revenue Service (IRS) began auditing Hall for his failure to file individual income tax returns and to determine his income tax liability. To obstruct the audit, Hall provided the IRS with false information about the ownership of his janitorial business, the business’ bank accounts, and its client relationships.
In addition to the term of imprisonment, U.S. District Court Judge David M. Lawson ordered Hall to serve one year of supervised release. Hall pleaded guilty in August 2017 to obstructing the internal revenue laws and failing to file a personal tax return.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Kenneth Vert and Jeffrey McLellan of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the United States Attorney’s Office for the Eastern District of Michigan for its substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Settles Immigration-Related Discrimination Claim Against Ohio CompanyRead the Press Release
The Justice Department announced today that it has reached a settlement with Omnicare Inc. (Omnicare), a wholly owned subsidiary of CVS Health Corporation and provider of long-term care pharmacy services in Ohio, resolving the Department’s investigation into whether the company violated the Immigration and Nationality Act’s (INA) anti-discrimination provision.
The Department’s investigation, which was initiated in response to a worker’s complaint, revealed that Omnicare engaged in citizenship status discrimination against a work authorized job applicant by refusing to refer him to the hiring manager for an interview because he was not a permanent resident or U.S. citizen, and removing him from the candidate pool based on his status as an asylee. The INA’s anti-discrimination provision prohibits employers from discriminating against asylees because of their citizenship or immigration status, unless authorized by law to do so.
Under the settlement agreement, Omnicare will pay the maximum civil penalty for one instance of citizenship status discrimination, post notices informing workers about their rights under the INA’s anti-discrimination provision, train its staff and its contractors, and be subject to departmental monitoring and reporting requirements for two years.
“Employers should ensure that all of the employees and contractors who screen their applicants for employment have the proper training to avoid improperly rejecting work authorized applicants based on a protected citizenship or immigration status,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to retaliation; different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
Former Department of Veterans Affairs Employee Pleads Guilty to Wire Fraud and BriberyRead the Press Release
A former Department of Veterans Affairs (VA) official pleaded guilty today to charges of wire fraud and bribery for orchestrating a scheme to steal more than $66,000 in benefit money from the VA for veterans in need.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division made the announcement.
Russel M. Ware, 39, of Upper Marlboro, Maryland, pleaded guilty to one count of wire fraud and one count of bribery before U.S. District Judge Amit P. Mehta in the District of Columbia. Sentencing has been scheduled for May 8, before Judge Mehta.
According to the plea documents, between September 2013 and May 2014, Ware devised a scheme to steal more than $21,000 in VA disability benefit money by wiring payments in the names of legitimate VA beneficiaries to his own bank account. Between October 2014 and February 2015, Ware directed additional disability benefits totaling almost $46,000 to a friend, Jacqueline Crawford of Gulfport, Mississippi. Ware and Crawford were not entitled to receive the money.
Ware also admitted that, at his direction, Crawford then kicked back more than $13,000 to Ware, usually through the use of Walmart2Walmart money transfers. Crawford pleaded guilty in February 2017, to an information charging her with a single count of theft of government property related to the scheme, and is awaiting sentencing.
The Department of Veterans Affairs Office of Inspector General investigated the case. Trial Attorneys Richard B. Evans and Rebecca Moses of the Criminal Division’s Public Integrity Section are prosecuting the case.
FBI Releases Preliminary 2017 Data on Crime in the United StatesRead the Press Release
The Federal Bureau of Investigation today released the 2017 Preliminary Semiannual Uniform Crime Report, a part of the FBI’s Uniform Crime Reports (UCR). The report, which covers January-June 2017, suggests that the violent crime increases that occurred in 2015 and 2016 may have begun to level off. The number of violent crimes decreased by 0.8 percent nationwide in the first half of 2017 when compared with the same period in 2016. The nationwide violent crime rate (the number of violent crimes per 100,000 people in the U.S.) increased by a total of nearly 7 percent during 2015 and 2016, (3.3 percent and 3.4 percent, respectively), the largest two increases in a quarter of a century.
“When President Trump took office, he ordered the Department of Justice to prioritize the reduction of violent crime, and that is what we have done every day since,” Attorney General Jeff Sessions said. “Last year, we charged more defendants with violent crime offenses than in any year in decades. We convicted hundreds of human traffickers, arrested thousands of violent gang members, and charged hundreds of people suspected of contributing to our opioid abuse epidemic. Working with our state, local, and tribal law enforcement partners, we are making a difference and protecting our communities. These data are encouraging, because it is essential that drastic increases in violent crime not become the new normal. We are dedicated to ensuring they do not.”
The data released by the FBI today also show that murders increased by 1.5 percent nationwide during the first six months of 2017, compared with the same period in 2016. This suggests a significant leveling off of the previous increase. In the first half of 2016, murders increased by 5.2 percent. Other categories of violent crime, including rape, robbery, and aggravated assault, all decreased in the first half of 2017 (by 2.4 percent, 2.2 percent, and 0.1 percent, respectively). All three categories increased during the same period in 2016. The FBI’s 2017 Preliminary Semiannual Uniform Crime Report is based on information received by the FBI from 13,033 law enforcement agencies nationwide.El Departamento de Justicia Resuelve una Denuncia de Discriminación Relacionada con la Inmigración contra una Empresa de OhioRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Omnicare, Inc. («Omnicare»), una empresa filial de propiedad total de CVS Health Corporation que brinda servicios de farmacia para cuidados a largo plazo en Ohio. El acuerdo resuelve la investigación del Departamento para determinar si la empresa había vulnerado la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).
La investigación del Departamento, la cual se inició como respuesta a una denuncia de un trabajador, reveló que Omnicare había discriminado a un postulante con autorización para trabajar por motivos de su estatus de ciudadanía al negarse a referirlo al director de contratación para una entrevista porque no era residente permanente o ciudadano de los EE. UU. y al eliminarlo del grupo de candidatos debido a su estatus como asilado. La disposición antidiscriminatoria de la INA prohíbe que los empleadores discriminen a asilados por motivos de su estatus migratorio o de ciudadanía, a no ser que cuenten con la autorización de la ley para hacerlo.
Conforme con el acuerdo, Omnicare pagará la sanción civil máxima para un caso de discriminación por motivos de estatus de ciudadanía, publicará notificaciones para informar a los trabajadores acerca de sus derechos al amparo de la disposición antidiscriminatoria de la INA, capacitará a su personal y contratistas y se someterá a los requisitos de supervisión y declaración del Departamento durante un período de dos años.
«Los empleadores deben asegurar que todos los empleados y contratistas que seleccionen a sus postulantes hayan sido capacitados adecuadamente para evitar que rechacen de manera incorrecta a postulantes autorizados a trabajar por motivos de un estatus migratorio o de ciudadanía protegido», declaró el Fiscal General Adjunto en funciones, John M. Gore, de la División de Derechos Civiles.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a otros requisitos documentales por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen, o a la discriminación por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.