District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Assistant Attorney General Makan Delrahim Meets with Students from Communities in Schools of AtlantaRead the Press Release
On Wednesday, January 17, 2018, Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division, along with Principal Deputy Assistant Attorney General Andrew Finch and Chief of Staff John Elias, met with high school students participating in dropout prevention organization Communities In Schools of Atlanta. The group discussed overcoming obstacles and achieving their goals.
“These impressive students are already on the road to achieving great things,” said Assistant Attorney General Delrahim. “Their stories inspired me, and I was grateful for the chance to share my experiences with them. I applaud the critical work that Communities In Schools and my friend and former colleague Frank Brown are doing.”
The Communities In Schools contingent also toured the White House, the Supreme Court, and the National Museum of African American History and Culture on its trip to Washington.
About Communities in Schools of Atlanta
Communities In Schools (CIS) of Atlanta, established in 1972, is dedicated to doing whatever it takes to help students succeed in school and achieve in life. Operating in more than 62 schools, mainly in Atlanta Public Schools, as well as Clayton County Public Schools, DeKalb County Schools and Fulton County Schools, CIS of Atlanta supports more than 36,000 students and their families in the 2016-2017 academic year. Based directly inside the schools, CIS of Atlanta connects students and their families to basic and critical educational and community-based resources, tailored to each student’s specific needs. Its Chief Executive Officer is Frank Brown, who has extensive experience with community organizations and on Capitol Hill.
CIS Atlanta runs “Real Talk about the Law.” This program is designed to reach young men in high school, encourage high school and post-secondary education, strengthen relationships between law enforcement and the community, and expose young men to positive career role models. The series has hosted prosecutors from the United States Attorney’s Office to discuss the realities of African-American boys’ and young men’s interactions with law enforcement.
Former Department of Veterans Affairs Police Officer Indicted for Civil Rights Violation and Obstruction of JusticeRead the Press Release
A former police officer with the Veterans Affairs Medical Center Police Department in Indianapolis, Indiana, has been indicted on federal civil rights and obstruction charges, announced Acting Assistant Attorney General for the Civil Rights Division John Gore, United States Attorney for the Southern District of Indiana Josh J. Minkler, and Federal Bureau of Investigation (FBI) Special Agent in Charge of the Indianapolis Division W. Jay Abbott.
The indictment charges that on April 18, 2017, Michael Kaim, 27, assaulted a patient whom he was in the process of arresting outside of the Richard L. Roudebush Veterans Affairs Medical Center. As a result of the assault, the patient sustained bodily injury. The indictment also charges the defendant with obstructing justice by writing a false report about the arrest.
The civil rights charge carries a maximum penalty of 10 years, and the obstruction of justice charge carries a maximum penalty of up to 20 years.
This case was investigated by the FBI and is being prosecuted by Trial Attorney Anita T. Channapati of the Justice Department’s Civil Rights Division with assistance from the United States Attorney’s Office in Indianapolis.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
Former Chief-Of-Staff for Laborers International Union of North America (LIUNA) and Former D.C. Attorney Charged with Healthcare Fraud and Thefts from LIUNARead the Press Release
A former chief-of-staff for LIUNA in Washington D.C. was charged yesterday with health care fraud and stealing from LIUNA.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; District Director Mark Wheeler of the Department of Labor’s Office of Labor Management Standards Washington, D.C., District Office; Regional Director Michael Schloss, Washington District Office, of the Department of Labor’s Employee Benefits Security Administration; and Special Agent in Charge Robin Blake of the Department of Labor Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations Washington, D.C., made the announcement.
On Jan. 18, a grand jury in Washington, D.C. indicted Roderick Marvin Bennett, 49, of Alexandria, Virginia, the former chief-of-staff for LIUNA, in a five-count indictment with three counts of theft from a labor organization, one count of health care fraud conspiracy and one count of health care fraud. Mr. Bennett will appear before U.S. District Judge Christopher R. Cooper at a later date.
LIUNA is a labor organization that represents more than 580,000 laborers in the construction industry in the United States and Canada. For approximately four years, until October 2016, Bennett served as the chief-of-staff at LIUNA headquarters in Washington, D.C. According to the indictment, from December 2013 to October 2016, Bennett made numerous unauthorized personal charges on his LIUNA-issued AMEX card totaling at least $170,000, which was contrary to the rules of LIUNA governing use of the AMEX card and which provided no benefit to LIUNA. The alleged unauthorized charges by Bennett included:
- Personal trips to Las Vegas, New York City and Orlando, Florida;
- Boat slip charges in Prince William Marina for his private boat;
- More than $33,000 in hotel and restaurant charges in Washington, D.C.;
- Personal electronics and toys, storage space, lawn care and furniture and antiques for his home;
- Private school tuition;
- A puppy and veterinary and kennel services;
- Lavish jewelry, luxury wristwatches and gold-flecked makeup; and
- Personal clothing, shoes, and dry cleaning services.
In addition, the indictment charge Bennett and Aimee Occhetti of The Villages, Florida, an attorney formerly of the District of Columbia, with health care fraud conspiracy and health care fraud. According to the allegations, Bennett arranged for Occhetti to be fraudulently placed on the LIUNA Healthcare Plan even though Occhetti was not a full-time employee of LIUNA and therefore not eligible to participate in the plan. The indictment further alleges that Occhetti obtained more than $66,000 in medical reimbursements from Aetna to which she was not entitled.
The case was investigated by the U.S. Department of Labor. The case is being prosecuted by Trial Attorney Vincent Falvo of the Criminal Division’s Organized Crime and Gang Section.
Two Men Indicted for Illegally Trafficking American EelsRead the Press Release
Joseph Kelley and James Lewis were each indicted in Newark, New Jersey, with crimes related to illegally trafficking juvenile American eels, also known as “elvers” or “glass eels.” A seven-count indictment was returned on Jan. 18, 2018, charging Kelley and Lewis with conspiracy to smuggle elvers and violate the Lacey Act.
The Indictment alleges that Kelley and Lewis knowingly harvested elvers illegally in the states of New Jersey and Massachusetts, and sold those elvers to dealers or exporters. Among those dealers is Thomas Choi, who pleaded guilty to related crimes in the District of Maine in 2016, and who was subsequently sentenced to six months’ imprisonment for those offenses.
The indictments were announced today by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division and Acting Director Greg Sheehan of the U.S. Fish and Wildlife Service.
Eels are highly valued in east Asia for human consumption. Historically, Japanese and European eels were harvested to meet this demand. However, overfishing has led to a decline in the population of these eels. As a result, harvesters have turned to the American eel to fill the void resulting from the decreased number of Japanese and European eels. Because of the threat of overfishing, elver harvesting is prohibited in the United States in all but two states: Maine and South Carolina. Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities.
These indictments were the result of “Operation Broken Glass,” a multi-jurisdiction, U.S. Fish and Wildlife Service (USFWS) investigation into the illegal trafficking of American eels. To date, the investigation has resulted in two other indictments, as well as guilty pleas for nineteen other individuals in Maine, Virginia, and South Carolina. These defendants combined have admitted to illegally trafficking more than $4.5 million worth of elvers.
Operation Broken Glass was conducted by USFWS and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, Massachusetts Division of Natural Resources, North Myrtle Beach, South Carolina Police Department and the Atlantic States Marine Fisheries Commission.
The government is represented by Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller.
Statement by Attorney General Sessions on Deputy U.S. Marshal Killed in the Line of Duty in Harrisburg, PennsylvaniaRead the Press Release
Today Attorney General Sessions issued the following statement on Deputy U.S. Marshal Christopher David Hill, killed in the line of duty in Harrisburg, Pennsylvania, while protecting his community:
"Today in the law enforcement community, our hearts are broken over the senseless killing of one of our Deputy Marshals, Chris Hill. He was shot and killed while doing his job executing a warrant on a wanted fugitive. Every day, Deputy U.S. Marshals make the people of this country safer by catching fugitives on the run, protecting our courthouses, our judges, and witnesses at trial. They achieve these critical accomplishments at often heroic risk. Chris Hill’s ultimate sacrifice calls to my mind the example of Robert Forsyth, whose name is given to the Marshals Service award for valor. Chris Hill’s name should also be remembered as synonymous with valor.”Justice Department Seeks to Obtain Denaturalization of Man with Alleged Participation in Extrajudicial Killings during the Balkans ConflictRead the Press Release
The United States today filed a civil denaturalization complaint in the Northern District of Iowa against a 51-year old man who allegedly obtained his naturalized U.S. citizenship by fraud, the U.S. Department of Justice and U.S. Immigration and Customs Enforcement (ICE) announced.
Eso Razic, a native of the former Yugoslavia and subsequently a citizen of the Republic of Bosnia and Herzegovina, allegedly concealed his service in multiple paramilitary organizations during the conflict in the Balkans in the early 1990s. The United States alleges that while serving as a member of those combatant groups, Razic participated in the extrajudicial killing of three individuals, including a wounded prisoner of war. The complaint alleges that Razic fraudulently obtained permanent resident status and citizenship by misrepresenting and concealing his membership in and conduct with these groups.
“The Department of Justice is committed to ensuring that our immigration system serves the national interest,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “When our immigration system and public safety are undermined by fraudsters, the Justice Department will prosecute them and use civil denaturalization to protect the integrity of our nation’s immigration system and defend the security of our nation.”
“Laws that regulate access to United States citizenship must be respected,” said Peter E. Deegan, Jr., United States Attorney for the Northern District of Iowa. “Our office will work vigorously with our enforcement partners to ensure that naturalization is reserved for qualified individuals and that the rule of law is upheld.”
“This denaturalization filing demonstrates the U.S. government’s enduring commitment to identify and bring to justice those who have committed human rights violations in any part of the world,” said ICE Homeland Security Investigations Deputy Executive Associate Director Derek Benner. “The United States will not serve as a safe haven for those who have committed such atrocities and then fled from justice. We will identify, locate, and work to prosecute and/or remove human rights violators in the U.S. regardless of their nationality, ethnicity, or religious background.”
The case was investigated by ICE’s Homeland Security Investigations (HSI) Human Rights Violator and War Crimes Unit (HRVWCU) and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS), with support from ICE’s Office of the Principal Legal Advisor (OPLA) Human Rights Law Section (HRLS). The case is being jointly prosecuted by Counsel for National Security Aaron Petty of OIL-DCS’s National Security and Affirmative Litigation Unit (NS/A Unit) and Assistant U.S. Attorney Jacob Schunk of the U.S. Attorney’s Office for the Northern District of Iowa, with support from Assistant Chief Counsel Abby Meyer of ICE OPLA, Omaha Office.
The claims made in the complaint are allegations only, and there have been no determinations of liability.
HSBC Holdings Plc Agrees to Pay More Than $100 Million to Resolve Fraud ChargesRead the Press Release
United Kingdom-based global financial services company HSBC Holdings plc (HSBC) entered into a deferred prosecution agreement (DPA) and agreed to pay a $63.1 million criminal penalty and $38.4 million in disgorgement and restitution to resolve charges that it engaged in a scheme to defraud two bank clients through a multi-million dollar scheme commonly referred to as “front-running.” The DPA, which was filed in connection with a two-count criminal information charging wire fraud in the United States District Court for the Eastern District of New York, is pending review by the Court.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) and Special Agent in Charge Timothy R. Slater of the FBI Washington Field Office’s Criminal Division made the announcement.
“HSBC’s admissions in connection with this resolution confirm that the company misused confidential client information for its own profit on more than one occasion,” said Acting Assistant Attorney General Cronan. “This sort of misconduct not only harmed their clients, costing the victims money, but it also ran a serious risk of undermining the public’s confidence in our financial markets. The Department of Justice takes these types of cases seriously and will hold to account financial institutions and individuals that circumvent the rule of law in favor of illicit profits.”
“Today’s agreement represents that the financial services company, HSBC Holdings, is responsible for the conduct of its employees, and that it must not be permitted to benefit from the fraud committed by bank personnel,” said Inspector General Lerner. “Such financial crimes violated the trusted relationships between HSBC and its clients, and therefore, we are pleased to join our law enforcement partners in combating this misconduct.”
"HSBC defrauded two bank clients in a front-running scheme that enabled them to acquire millions of dollars to benefit their institution and harm their clients," said Special Agent in Charge Slater. "The FBI remains dedicated to ensuring the integrity is upheld in the financial services industry, and prosecuting those who engage in illegal business practices."
According to HSBC’s admissions, on two separate occasions in 2010 and 2011, traders on its foreign exchange desk misused confidential information provided to them by clients that hired HSBC to execute multi-billion dollar foreign exchange transactions involving the British Pound Sterling. After executing confidentiality agreements with its clients that required the bank to keep the details of their planned transactions confidential, traders on HSBC’s foreign exchange desk transacted in the Pound Sterling for the traders and HSBC’s own benefit in their HSBC “proprietary” accounts. HSBC traders then caused the large transactions to be executed in a manner designed to drive the price of the Pound Sterling in a direction that benefited HSBC, and harmed their clients. HSBC also made misrepresentations to one of the clients, Cairn Energy, to conceal the self-serving nature of its actions. In total, HSBC admitted to making profits of approximately $38.4 million on the first transaction in March 2010, and approximately $8 million on the Cairn Energy transaction in December 2011.
Pursuant to its agreement with the Justice Department, HSBC agreed to pay a criminal penalty of $63.1 million. HSBC also agreed to continue to cooperate with the department and with foreign authorities in any ongoing investigations and prosecutions relating to the conduct (including of individuals), to enhance its compliance program, and to pay $38.4 million in disgorgement and restitution for its conduct related to one of the two victim companies. HSBC previously settled with the other victim company, Cairn Energy, for approximately $8 million, which the Department credited as full restitution for Cairn.
The Department reached this resolution based on a number of factors, including the approximately $46.4 million that HSBC gained from the offense; the bank’s remedial measures to date, including dedicating significant resources to improving its systems and controls and terminating the employment of employees involved in wrongdoing; and the bank’s commitment to continuing to enhance its compliance program and internal controls. HSBC did not receive credit for voluntarily disclosing the misconduct. HSBC received substantial cooperation credit because, although as detailed in the DPA, the bank’s initial cooperation with the government’s investigation was deficient in certain respects, after being notified of the Department’s concerns, HSBC changed course and its cooperation improved substantially.
In connection with the government’s investigation, Mark Johnson was charged on Aug. 16, 2016 with one count of conspiracy to commit wire fraud as well as 10 counts of wire fraud stemming from the Cairn Energy transaction. Johnson, the former head of foreign exchange cash trading at HSBC, was found guilty on Oct. 23, 2017 of one count of conspiracy and eight counts of wire fraud after a four-week jury trial in Brooklyn, New York. His sentencing is scheduled for Feb. 15.
The investigation was conducted by the FDIC’s Office of Inspector General and the FBI’s Washington Field Office. Assistant Chiefs Carol Sipperly and Brian Young and Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section are prosecuting the case. The U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Office of International Affairs provided significant support.
Department of Justice Files Amicus Brief in Montana School Choice CaseRead the Press Release
The Department of Justice today filed an amicus brief with the Supreme Court of Montana supporting parents who claim that the state unconstitutionally discriminated against their children when it barred them from a private school scholarship program because they attend a religious school.
The case, Espinoza v. Montana Department of Revenue, involves children attending a Christian school who were denied participation in the Montana Tax Credit Scholarship Program after the Department of Revenue issued a rule declaring ineligible students attending schools owned or controlled “by a church, religious sect, or denomination.” Under the scholarship program, Montana taxpayers can contribute up to $150 to privately run scholarship organizations and receive a tax credit. The scholarship organizations then provide scholarships for families attending non-public elementary and secondary schools in the state. The parents filed suit in December 2015 after their children were denied participation in the scholarship program because they attend a Christian school. A state trial court ruled in favor of the parents in May 2017 and issued an injunction requiring them to be allowed to participate. The state appealed, arguing that the rule is valid under state law, and that it does not violate the U.S. Constitution.
The United States’ brief argues that excluding these families from the scholarship program because they have chosen to attend a religious school violates their rights under the U.S. Constitution’s Free Exercise Clause, which forbids government discrimination on the basis of religion.
“The Constitution prohibits states from discriminating based on religion,” said Associate Attorney General Rachel Brand. “Today’s amicus brief is further proof that this administration will lead by example on religious liberty.”
The United States’ brief notes that school choice scholarships programs like this one are plainly permissible under the Establishment Clause. And, the brief argues, the Supreme Court’s holding last year in Trinity Lutheran Church of Columbia v. Comer makes clear that blocking students attending religious schools from participating in such scholarship programs violates the Free Exercise Clause. In Trinity Lutheran, the Court held that a Colorado program providing recycled tires for playground surfacing violated the Free Exercise Clause when it excluded religious organization from the program. The Court held that “the Free Exercise Clause protects religious observers against unequal treatment and subjects to the strictest scrutiny laws that target the religious for special disabilities.” The United States brief argues that the Montana scholarship program likewise cannot treat families attending religious schools unequally.
Today’s filing addresses issues set forth in Attorney General Sessions’ Guidance on Federal Law Protections for Religious Liberty issued on Oct. 6, 2017. The Guidance stated that “government may not target persons or individuals because of their religion” and may not “deny religious schools-including schools whose curricula and activities include religious elements-the right to participate in a voucher program, so long as the aid reaches the schools through independent decisions of parents.”
Attorney General Sessions Applauds Congress for Voting to Reauthorize Section 702 of the Foreign Surveillance Intelligence ActRead the Press Release
Today Attorney General Sessions issued the following statement applauding Congress for voting to reauthorize Section 702:
“Today's vote to reauthorize Section 702 of the Foreign Intelligence Surveillance Act is crucial to allowing us to continue to gather intelligence on foreign terrorists overseas and foil potential plots against Americans abroad and at home. I would especially like to thank the Senate and House leadership on both sides of the aisle, as well as the bipartisan efforts from those leaders on the Senate and House Intelligence and Judiciary Committees that supported and helped pass this critical legislation that gives us the tools to continue to keep the American people safe.”Florida Man Sentenced to Prison for Making Telephonic Threat to Shoot Congregants at the Islamic Center of Greater MiamiRead the Press Release
U.S. District Judge Marcia G. Cooke sentenced a Miami-area man to 12 months and one day in prison and three years’ supervised release for threatening to shoot members of a mosque in Miami Gardens, Florida, announced Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
Gerald Wallace, 35, pleaded guilty in October 2017 in the Southern District of Florida to one count of obstructing the free exercise of religious beliefs for making the threatening call. During the plea hearing, Wallace admitted that on the evening of Feb. 19, 2017, Wallace left a voicemail message for the Islamic Center of Greater Miami, located in Miami Gardens, Florida. The defendant admitted leaving a hate-filled and profanity-laden message against Islam, the prophet Mohammed, and the Koran, during which he threatened to go to the mosque, and stated, “I’m gonna shoot all ya’ll.” He further admitted that by leaving this threatening message, he obstructed congregants who worship at the Islamic Center from freely exercising their religious beliefs.
“Our Constitution and laws guarantee all people – regardless of where they worship – the right to live free from violence and discrimination,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to vigorously prosecute those who commit violent acts of hate by threat or action.”
“Hate crimes violate our country’s most fundamental principles,” said U.S. Attorney Benjamin G. Greenberg. “Today, Wallace was sentenced for depriving the Islamic Center’s congregants of the right to freely exercise their religion. This office will continue to aggressively prosecute hate crimes in order to protect those in our community who would otherwise fall victim to discriminatory violence.”
This case was investigated by the FBI’s Miami Area Corruption Task Force and the Miami Gardens Police Department. The case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr. of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
Colombian National Sentenced to Prison for Conspiracy to Bribe Federal Agent to Dismiss Indictment Against Colombian Narcotics KingpinRead the Press Release
A Colombian national was sentenced today to 27 months in prison for his participation in a conspiracy and bribery scheme that resulted in the dismissal of a drug trafficking indictment filed against a Colombia-based drug kingpin, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
According to admissions in his plea agreement, Juan Carlos Velasco Cano, 49, acted as an intermediary between U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations Special Agent Christopher V. Ciccione II, 52, of Phoenixville, Pennsylvania, and Colombian national Jose Bayron Piedrahita Ceballos, 58, to use Ciccione’s official position to cause a drug trafficking indictment against Piedrahita to be dismissed and to obtain official authorization for Piedrahita to enter the United States.
Velasco admitted that Piedrahita gave Ciccione approximately $20,000 in cash, dinner, drinks and prostitution during an extended hotel stay in Bogota, Colombia in exchange for Ciccione using his official position to obtain the dismissal of the indictment against Piedrahita. In furtherance of the scheme, Velasco arranged for a meeting of the conspirators in Bogota; facilitated communications between Piedrahita and Ciccione; and received confidential law enforcement information from Ciccione about himself and others, including the names of a confidential source and cooperating witnesses.
Velasco was sentenced by U.S. District Judge Robert N. Scola, Jr. of the Southern District of Florida. Ciccione will be sentenced on Feb. 9 and 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, the Department of Homeland Security’s Office of Inspector General and the FBI investigated the case. The Department of Justice’s Office of International Affairs, the 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.
Bureau of Prisons Tests Micro-Jamming Technology in Federal Prison to Prevent Contraband Cell PhonesRead the Press Release
On January 17, 2018, the Federal Bureau of Prisons (BOP), in collaboration with the National Telecommunications and Information Administration (NTIA) and the Federal Communications Commission, conducted a test of micro-jamming technology at the Federal Correctional Institution at Cumberland, Maryland. The test was conducted to determine if micro-jamming could prevent wireless communication by an inmate using a contraband device at the individual cell housing unit level.
Prior to this test, the BOP had conducted a limited cellphone jamming demonstration with NTIA in 2010, at the same field site in Cumberland supporting NTIA’s congressionally-mandated study of cellphone interdiction technologies.
As part of the Jan. 17 test, NTIA conducted an independent evaluation of micro-jamming technology to determine its efficacy and interference potential with Radio Frequency communications. The BOP and NTIA will review the data and analysis results from both BOP’s and NTIA’s testing and develop recommendations for strategic planning and possible acquisition.
“Contraband cell phones in prisons pose a major and growing security threat to correctional officers, law enforcement officials, and the general public,” said Assistant Attorney General Beth Williams of the Justice Department’s Office of Legal Policy. “As criminals increase their technological capacity to further criminal activity from within prisons, we must also explore technologies to prevent this from happening. This test is part of our ongoing efforts to find a solution.”
Contraband cellphones have been an ongoing correctional security and public safety concern for the BOP as well as for state and local correctional agencies across the country. Contraband phones are used to further ongoing criminal activity, including threats to public officials, intimidation of witnesses, and continuance of criminal enterprises.
The BOP will continue to evaluate cell phone detection technologies and work with its federal partners and Congress to achieve cost-effective options to combat this threat to corrections and public safety. The agency does not endorse any specific vendor or product.
Justice Department Files Notice to Appeal and Intends to Petition for Immediate Supreme Court Review in DACA LawsuitRead the Press Release
The Department of Justice today filed a notice of appeal in The Regents of the University of California and Janet Napolitano v. U.S. Department of Homeland Security and Elaine Duke seeking review before the U.S. Court of Appeals for the Ninth Circuit. The Department also intends later this week to take the rare step of filing a petition for a writ of certiorari before judgment, seeking direct review in the Supreme Court.
“It defies both law and common sense for DACA—an entirely discretionary non-enforcement policy that was implemented unilaterally by the last administration after Congress rejected similar legislative proposals and courts invalidated the similar DAPA policy—to somehow be mandated nationwide by a single district court in San Francisco,” said Attorney General Jeff Sessions. “It is clear that Acting Secretary Duke acted within her discretion to rescind this policy with an orderly wind down. This was done both to give Congress an opportunity to act on this issue and in light of ongoing litigation in which the injunction against DAPA had already been affirmed by the Supreme Court. We are now taking the rare step of requesting direct review on the merits of this injunction by the Supreme Court so that this issue may be resolved quickly and fairly for all the parties involved.”Justice Department Defends Archdiocese of Washington’s Religious LibertyRead the Press Release
The Department of Justice today filed an amicus brief supporting reversal of the D.C. District Court’s decision denying the Archdiocese of Washington’s motion for preliminary injunction against Washington Area Metropolitan Transit Authority (WMATA).
In November, the Archdiocese of Washington requested to purchase an advertisement on WMATA buses as part of its “Find the Perfect Gift” Christmas charitable campaign. WMATA denied this request, claiming that the advertisement violated WMATA’s policies banning ads that “promote or oppose any religion, religious practice or belief.” WMATA’s sole basis for rejecting the advertisement—which conveys the implicit message that viewers should “seek spiritual gifts,” make charitable donations, attend church services, and pursue “public service opportunities”—was that the advertisement “seeks to promote religion.” WMATA accepts advertisements that contain non-religious Christmas messages from charitable and commercial viewpoints.
In the amicus brief, the department asserts that WMATA’s rejection of the advertisement constitutes viewpoint discrimination and is a violation of the Archdiocese of Washington’s First Amendment right of free speech.
"As the Supreme Court has made clear, the First Amendment prohibits the government from discriminating against religious viewpoints," said Associate Attorney General Rachel Brand. "By rejecting the Archdiocese’s advertisement while allowing other Christmas advertisements, WMATA engaged in unconstitutional viewpoint discrimination."
The Justice Department, under Attorney General Jeff Sessions’ leadership, has shown a commitment to religious liberty and free speech protections, highlighted by the Government’s amicus brief in Masterpiece Cakeshop and its briefs in support of free speech on college campuses.Note: The amicus brief can be found here.
Former Head of Barclays New York Foreign Exchange Operation Indicted for Orchestrating Multimillion-Dollar Front-Running SchemeRead the Press Release
Update: On March 4, 2019, Senior U.S. District Court Judge Charles Roberts Breyer of the Northern District of California granted the Rule 29 motion and granted an acquittal. Mr. Bogucki was acquitted on all charges.
The former head of Barclays Capital Inc.’s (Barclays) New York foreign exchange trading operation was charged yesterday in an indictment for his alleged role in a scheme to defraud a client of Barclays through a method commonly referred to as “front-running.” The charges relate to the manipulation of foreign exchange options in advance of an exceptionally large trade by the Palo Alto, California-based Hewlett-Packard Company (HP) in 2011.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Alex G. Tse of the Northern District of California and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) made the announcement.
Robert Bogucki, 45, of East Setauket, New York, was charged in an indictment filed in the Northern District of California on Jan. 16, with one count of conspiracy to commit wire fraud and six counts of wire fraud. Bogucki will make his initial appearance on Wednesday, Jan. 17, at 2:00pm in Brooklyn, New York, before U.S. Magistrate Judge Cheryl L. Pollak of the Eastern District of New York.
“Robert Bogucki and others allegedly not only betrayed his client’s confidences, but also risked undermining public trust in the foreign exchange options market,” said Acting Assistant Attorney General Cronan. “The Criminal Division and our law enforcement partners remain committed to protecting American interests by investigating and prosecuting sophisticated schemes such as the one alleged in this indictment.”
“The indictment returned today charges a fraudulent manipulation scheme where the defendant betrayed Barclays’ client by lying and misusing the client information, and then masked the activities,” said Inspector General Lerner. “We are pleased to work with our law enforcement partners in investigating these matters and protecting the integrity of the banking system against such alleged abuses.”
According to the indictment, in September and October 2011, Bogucki misused information provided to him by HP, which had hired Barclays to execute a foreign exchange transaction related to the planned acquisition of a UK-based company. Barclays was selected to execute the foreign exchange transaction – which required the sale of 6 billion British pounds worth of options – in September 2011. The defendant and other Barclays employees assured HP and its employees that they understood the need to keep the planned transaction, which was exceptionally large, and therefore “market-moving,” confidential. Instead, Bogucki and other Barclays employees allegedly used the confidential information they received to manipulate the price of “volatility,” a metric that affects the value of foreign exchange options. During conversations with Bogucki, one Barclays trader stated that he and other traders would “bash the sh*t out of” and “spank the market” to depress the price of volatility. Other Barclays traders also discussed “hammer[ing] the market lower” in order to decrease the value of the HP’s options.
The indictment alleges that, as part of the scheme, Bogucki made misrepresentations to HP and its employees about Barclays’ activities and the state of the options market that concealed the self-serving nature of Barclays’ actions. Specifically, the indictment alleges that Bogucki directed options trading in a way that was designed to depress the price of volatility, to the benefit of Barclays and at HP’s expense.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law. This is the second indictment brought against the head of a foreign exchange desk of a global financial institution related to the Criminal Division’s ongoing investigation of fraud and manipulation in the foreign exchange markets.
The investigation is being conducted by the FDIC’s Office of Inspector General. Assistant Chief Brian Young and Trial Attorney Justin Weitz of the Criminal Division’s Fraud Section are prosecuting the case. The U.S. Attorney’s Office for the Northern District of California provided substantial assistance in this matter.
DOJ, DHS Report: Three Out of Four Individuals Convicted of International Terrorism and Terrorism-Related Offenses were Foreign-BornRead the Press Release
Today, the Department of Justice (DOJ) and the Department of Homeland Security (DHS) released a report, revealing that three out of every four, or 402, individuals convicted of international terrorism-related charges in U.S. federal courts between September 11, 2001, and December 31, 2016 were foreign-born. Over the same period, U.S. Immigration and Customs Enforcement removed approximately 1,716 aliens with national security concerns. Further, in 2017 alone DHS had 2,554 encounters with individuals on the terrorist watch list (also known as the FBI’s Terrorist Screening Database) traveling to the United States.
This report was required by Section 11 of President Trump’s Executive Order 13780, Protecting the Nation from Foreign Terrorist Entry into the United States, which declared that “it is the policy of the United States to protect its citizens from terrorist attacks, including those committed by foreign nationals,” directed a series of actions to enhance the security and safety of the American people. The actions directed by Executive Order have raised the baseline for the vetting and screening of foreign nationals, prevented the entry of malicious actors, and enhanced the safety and security of the American people.
“This report reveals an indisputable sobering reality—our immigration system has undermined our national security and public safety,” said Attorney General Sessions. “And the information in this report is only the tip of the iceberg: we currently have terrorism-related investigations against thousands of people in the United States, including hundreds of people who came here as refugees. Our law enforcement professionals do amazing work, but it is simply not reasonable to keep asking them to risk their lives to enforce the law while we admit thousands every year without sufficient knowledge about their backgrounds. The pillars of President Trump’s immigration policy—securing our porous borders, moving to a merit-based immigration system that ends the use of diversity visas and chain migration, and enforcing our nation’s laws—will make their jobs easier and make the United States a safer place.”
“My top priority as Secretary of Homeland Security is to ensure the safety and security of the American people,” said Secretary Nielsen. “This report is a clear reminder of why we cannot continue to rely on immigration policy based on pre-9/11 thinking that leaves us woefully vulnerable to foreign-born terrorists, and why we must examine our visa laws and continue to intensify screening and vetting of individuals traveling to the United States to prevent terrorists, criminals, and other dangerous individuals from reaching our country. Without legislative change, DHS will continue to see thousands of terrorists a year attempt to enter the United States, and while we must be right every time, the terrorists only need to be lucky once. Therefore, DHS has personnel deployed around the world and along our borders working with our global and domestic law enforcement partners to stop terrorists before they enter the homeland.”
The report reveals that at least 549 individuals were convicted of international terrorism-related charges in U.S. federal courts between September 11, 2001, and December 31, 2016. An analysis conducted by DHS determined that approximately 73 percent (402 of these 549 individuals) were foreign-born. Breaking down the 549 individuals by citizenship status at the time of their respective convictions reveals that:
- 254 were not U.S. citizens;
- 148 were foreign-born, naturalized and received U.S. citizenship; and,
- 147 were U.S. citizens by birth.
According to information available to U.S. Immigration and Customs Enforcement (ICE), since September 11, 2001, there were approximately 1,716 removals of aliens with national security concerns.
As mentioned above, in FY 2017, DHS encountered 2,554 individuals on the terrorist watchlist (also known as the FBI’s Terrorist Screening Database) traveling to the United States. Of those individuals, 335 were attempting to enter by land, 2,170 were attempting to enter by air, and 49 were attempting to enter by sea. Where consistent with the law, such individuals are denied entry into the United States, while in some cases law enforcement authorities are notified and can take appropriate action.
From October 1, 2011, to September 30, 2017, a total of 355,345 non-U.S. citizen offenders, were administratively arrested after previously being convicted of an aggravated felony, as defined in 8 U.S.C. § 1101(a)(43), or two or more crimes each punishable by more than one year (felony offenses). During that same period, a total of 372,098 non-U.S. citizen offenders were removed from the United States after conviction of an aggravated felony or two or more felonies.
Data from U.S. Citizenship and Immigration Services’ Fraud Detection and National Security Directorate shows that between 2007 and 2017, USCIS referred 45,858 foreign nationals who applied for immigration benefits to ICE for criminal or civil enforcement action, based on information indicating that such foreign nationals had committed egregious public safety-related offenses within the United States.
Between FY 2010 and FY 2016, CBP identified and prevented the boarding of 73,261 foreign travelers on flights destined for the United States, who may have presented an immigration or security risk.
In October, the Trump Administration sent to Congress a list of legislative priorities that would enhance our national security—such as eliminating the diversity visa lottery and extended family chain migration, funding the wall, closing loopholes in our asylum system, combatting visa overstays, and closing other loopholes in existing law that potentially benefit aliens who pose threats to our national security.
Background on the Executive Order
Section 11 of Executive Order requires the Secretary of Homeland Security, in consultation with the Attorney General, to collect and make publicly available the following information:
- Information regarding the number of foreign nationals in the United States who have been charged with terrorism-related offenses while in the United States; convicted of terrorism-related offenses while in the United States; or removed from the United States based on terrorism-related activity, affiliation with or provision of material support to a terrorism-related organization, or any other national-security-related reasons;
- Information regarding the number of foreign nationals in the United States who have been radicalized after entry into the United States and who have engaged in terrorism-related acts, or who have provided material support to terrorism-related organizations in countries that pose a threat to the United States;
- Information regarding the number and types of acts of gender-based violence against women, including so-called “honor killings,” in the United States by foreign nationals; and,
- Any other information relevant to public safety and security as determined by the Secretary of Homeland Security or the Attorney General, including information on the immigration status of foreign nationals charged with major offenses.
Attorney General Issues Religious Freedom Day ProclamationRead the Press Release
Attorney General Jeff Sessions released the following proclamation commemorating Religious Freedom Day:
“Thomas Jefferson served as President for two terms, as Vice President, and as Secretary of State, but he did not mention these prestigious titles on his tombstone. Instead, he named three accomplishments he was more proud of: that he had founded the University of Virginia, authored the Declaration of Independence, and authored the Virginia statute of religious freedom.
“To commemorate Religious Freedom Day, the Department of Justice will file an amicus brief today supporting reversal of the D.C. District Court’s decision denying the Archdiocese of Washington’s motion for preliminary injunction against Washington Area Metropolitan Transit Authority (WMATA) and will file a second amicus brief later this week with the Supreme Court of Montana supporting parents who claim that the state unconstitutionally discriminated against their children when it barred them from a private school scholarship program because they attend a religious school.
“On this Religious Freedom Day, as we remember this historic statute, we do well to remember the timeless truths it articulates: that religious freedom is an inalienable human right which deserves the protection of the law and that ‘truth is great and will prevail if left to herself.’”North Carolina Man Pleads Guilty in Multi-State Dog Fighting ProsecutionRead the Press Release
A North Carolina man pleaded guilty to federal dog fighting and conspiracy charges yesterday, announced United States Attorney Matthew G.T. Martin and Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division.
Brexton Redell Lloyd, 54, of Eagle Springs, North Carolina, pleaded guilty to one felony count of conspiracy and two felony counts of possession and training a dog intended for use in an animal fighting venture, contrary to the animal fighting provisions of the federal Animal Welfare Act. Each count carries a maximum sentence of five years in prison and a $250,000 fine.
According to documents filed with the court, Lloyd participated with Justin “Jay” Love and others in a multi-state dog fighting conspiracy. These documents describe Lloyd and Love’s attempt to set up a dog fight between Lloyd and an unknown opponent in October 2015 and Lloyd’s breeding and training activities. Court documents further note that earlier this year, agents seized thirteen pit bull-type dogs from Lloyd’s residence. Ten of the dogs were secured outdoors by excessive chains, wearing thick collars, and positioned so that each dog was out of reach of any other dog. The other dogs were housed individually in pens. The water in the dogs’ bowls was frozen. Two of the four adult dogs seized exhibited scars consistent with dog fighting, and a third adult dog had four fractured teeth. In addition to the dogs, agents seized items related to training dogs for dog fighting purposes, including: a spring pole, a dog harness, and a hanging scale. Agents also seized veterinary supplies, including: intravenous fluids, intravenous administration sets stated for “Veterinary Use Only,” injectable and other antibiotics, a 100-count package of syringes, blood clotting medications such as Blood Stop Powder, and a skin stapler.
“Organized crime has no place in North Carolina or the United States – and dog fighting of this sort is nothing short of organized crime. Our law enforcement partners at the Department of Agriculture, the Federal Bureau of Investigation, the Moore County Sheriff’s Office, and the N.C. State Highway Patrol demonstrated exceptional coordination in bringing this defendant to justice,” said United States Attorney Matthew G.T. Martin for the Middle District of North Carolina.
“Yesterday’s guilty plea and our continuing efforts to investigate and prosecute these cases send a strong message that our justice system will not tolerate the torment and death of animals in the fighting ring, all for the sake of illegal gambling,” said Acting Assistant Attorney General. “Federal law is clear on this point and will continue to be enforced.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” said Special Agent in Charge Bethanne M. Dinkins for U.S. Department of Agriculture’s Office of Inspector General. “Together with the Department of Justice, animal fighting is an investigative priority for USDA OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, over one hundred dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government. The Humane Society of the United States assisted with the care of the dogs seized by federal law enforcement.
This case was investigated by USDA-OIG and FBI, with assistance from the Moore County Sheriff’s Office and the North Carolina Highway Patrol, and is being prosecuted by Assistant U.S. Attorney JoAnna G. McFadden and Trial Attorney Erica H. Pencak of the Justice Department’s Environmental Crimes Section Environmental Crimes Section.
Maurice man pleads guilty to fraudulently obtaining more than $1.6 million from Abbeville bankRead the Press Release
LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced that a man from Maurice pleaded guilty Wednesday to submitting false receipts in order to draw more than $1.6 million from a bank line of credit.
Richard J. Viator Jr., 52, of Maurice, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of bank fraud. The plea will become final after it is accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, Viator was the owner/president of the oilfield company Safety Analysis Team Inc. located in Abbeville, La. Viator had a revolving line of credit for $2 million at an Abbeville bank. In order to access the credit, he was required to submit receipts. From November 4, 2010 to February 23, 2011, Viator received 11 draws or payments from the line of credit totaling $1,673,304.85 based on false and fraudulent invoices, which purported to be accounts receivable from various companies for work performed by Safety Analysis Team.
Viator faces up to 30 years in prison, five years of supervised release, restitution and a $1 million fine. The court set April 10, 2018 as the sentencing date.
The FBI conducted the investigation. Assistant U.S. Attorneys Jamilla A. Bynog and Kelly P. Uebinger are prosecuting the case.
Josephine Joann Quintanilla Sentenced for Federal Firearm and Drug CrimesRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that defendant JOSEPHINE JOANN QUINTANILLA, age 37, from Mangilao, was sentenced in the District Court of Guam to 46 months imprisonment for the crimes of Drug User in Possession of Firearms and Ammunition, in violation of 18 U.S.C. § 922(g), and Possession with Intent to Distribute Methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(a)(1). The Court also ordered three years of supervised release following defendant’s term of imprisonment, in addition to the forfeiture of seven firearms and 98 rounds of ammunition. Additionally, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On May 31, 2017, defendant Quintanilla pleaded guilty to two counts in an Indictment charging her with Drug User in Possession of Firearms and Ammunition and Possession with Intent to Distribute Methamphetamine. The investigation showed that Quintanilla was a regular user of methamphetamine hydrochloride throughout 2016. A search of her home also revealed drug paraphernalia and scales used to weigh the drug. During this same period, federal agents learned that Quintanilla possessed and sold firearms and ammunition. Quintanilla also traveled to California to mail 28.24 grams of methamphetamine to Guam.
The investigation was conducted by the U.S. Postal Service Inspection and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Rosetta San Nicolas, Assistant
U.S. Attorney.
FBI Releases Age-Progressed Photos of Four Most Wanted Terrorists from Pan Am Flight 73 HijackingRead the Press Release
The FBI Washington Field Office announced today the release of age-progressed photographs of four alleged hijackers charged in the United States with the September 5, 1986 attack of Pan American World Airways Flight 73 in Karachi, Pakistan: Wadoud Muhammad Hafiz al-Turki, Jamal Saeed Abdul Rahim, Muhammad Abdullah Khalil Hussain ar-Rahayyal, and Muhammad Ahmed al-Munawar. These images were created by the FBI Laboratory using age-progression technology and original photographs obtained by the FBI in the year 2000.
The attack on Pan Am Flight 73 resulted in the murder of 20 passengers and crew, including two Americans, the attempted murder of 379 passengers and crew, and the wounding of more than 100 individuals on board.
This announcement is in coordination with the U.S. Department of State Rewards for Justice Program, which is offering a reward of up to $5 million each for information leading to the arrest and/or conviction of the alleged hijackers. Each of these individuals is believed to have been a member of the Abu Nidal Organization (ANO), previously on the U.S. Department of State’s list of designated Foreign Terrorist Organizations. Each suspect is currently on the FBI’s Most Wanted Terrorist List.
Anyone with information regarding these terrorists is asked to contact the FBI, the nearest American Embassy or Consulate, or submit a tip on https://tips.fbi.gov, which can remain anonymous.
Individuals on the FBI’s Most Wanted Terrorists List have been indicted by sitting Federal Grand Juries in various jurisdictions in the United States for the crimes reflected on their wanted posters. The indictments currently listed on the posters allow them to be arrested and brought to justice. Additional information regarding the FBI’s Most Wanted Terrorists program can be found at: https://www.fbi.gov/wanted/wanted_terroristsAttorney General Sessions Announces Hezbollah Financing and Narcoterrorism TeamRead the Press Release
Attorney General Jeff Sessions today announced the creation of the Hezbollah Financing and Narcoterrorism Team (HFNT), a group of experienced international narcotics trafficking, terrorism, organized crime, and money laundering prosecutors. HFNT prosecutors and investigators are tasked with investigating individuals and networks providing support to Hezbollah, and pursuing prosecutions in any appropriate cases. The HFNT will begin by assessing the evidence in existing investigations, including cases stemming from Project Cassandra, a law enforcement initiative targeting Hezbollah’s drug trafficking and related operations.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division will supervise the HFNT, and will convene a coordination meeting focused on identifying and combatting such support to Hezbollah. The HFNT will coordinate with, among others, investigators from the Drug Enforcement Administration (DEA), including the DEA’s Special Operations Division; Federal Bureau of Investigation; Homeland Security Investigations; Assistant United States Attorneys; and attorneys from the Justice Department’s Criminal Division and National Security Division.
“The Justice Department will leave no stone unturned in order to eliminate threats to our citizens from terrorist organizations and to stem the tide of the devastating drug crisis,” said Attorney General Sessions. “In an effort to protect Americans from both threats, the Justice Department will assemble leading investigators and prosecutors to ensure that all Project Cassandra investigations as well as other related investigations, whether past or present, are given the needed resources and attention to come to their proper resolution. The team will initiate prosecutions that will restrict the flow of money to foreign terrorist organizations as well as disrupt violent international drug trafficking operations.”
“The investigation and prosecution of terrorist organizations that contribute to the growing drug crisis are a priority for this administration,” said Acting Assistant General Cronan. “At the Attorney General’s direction, the HFNT will use all appropriate tools to aggressively investigate and prosecute those who provide financial support to Hezbollah in an effort to eradicate the illicit networks that fuel terrorism and the drug crisis.”
Milwaukee Man Sentenced to 21 Years for Sex Trafficking and Forced LaborRead the Press Release
Paul Carter, 47, of Milwaukee was sentenced today to 21 years in prison, reduced by three years for time served, after pleading guilty on Oct. 6, 2017, to four counts of sex trafficking by force, fraud, or coercion and one count of conspiracy to commit forced labor and sex trafficking, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Gregory Haanstad of the Eastern District of Wisconsin, and Homeland Security Investigations (HSI) Special Agent in Charge James M. Gibbons.
According to documents filed in court and in connection with the defendant’s guilty plea, for over a decade, from 2001 to 2013, the defendant recruited young women and girls to dance at clubs using false promises of money and a better life. He then used a combination of physical violence, isolation, emotional manipulation, sexual assault, and threats to harm the victims’ families to exert control over the victims and compel them to engage in commercial sex acts.
For example, on one occasion, the defendant used a heated wire hanger to brand a “P” on a victim’s buttock to demonstrate his ownership of her. When he learned that another victim was considering leaving, he put the barrel of a gun in her mouth and threatened to “blow her head off.”
On another occasion, the defendant, believing that a victim had hidden money from him, responded by searching her genitals and then forcing her to engage in sexual intercourse with him. In another instance, the defendant required her to choose between two punishments: drowning or jumping out of a window. After the victim jumped out of the window and fell to the ground, the defendant kicked her several times in the head, threw the victim to the ground, and stepped on her head hard enough to break her teeth.
President Donald J. Trump recently announced January 2018 as National Slavery and Human Trafficking Prevention Month, which culminates on February 1, 2018 with the annual celebration of National Freedom Day. In February 2017, President Trump signed an Executive Order, which directed the Attorney General to dismantle transnational criminal organizations, including those involved in human trafficking.
“Combatting sex trafficking—a heinous crime that often times preys on the youngest and most vulnerable members of our society—is one of the highest priorities of the Justice Department,” said Associate Attorney General Rachel Brand. “We will continue to work tirelessly to vindicate the civil rights of victims of human trafficking.”
“Sex traffickers target and prey upon some of the most vulnerable members of our society, threatening victims and subjecting them to extraordinary levels of violence,” said U.S. Attorney Gregory Haanstad of the Eastern District of Wisconsin. “Sex traffickers use violence not only to coerce victims into engaging in commercial sex acts, but also as a way to keep victims from cooperating with trafficking investigations and prosecutions. The United States Attorney’s Office remains committed to working with our federal, state, and local law enforcement partners to vindicate the rights of sex trafficking victims and to protect citizens from these violent and predatory offenses.”
“This case is an example of the ruthlessness of human traffickers who are willing to do anything, including victimizing women and girls, to make money,” said HSI Special Agent in Charge James M. Gibbons. “Human trafficking is modern-day slavery and HSI will continue to collaborate with community partners to bring justice to those impacted by this terrible crime.”
Two of Carter’s co-defendants previously pleaded guilty. Defendant David Moore pleaded guilty on October 27, 2015, to conspiracy to commit sex trafficking and trafficking with respect to forced labor. Sentencing is scheduled for January 30, 2018. Defendant Najee Moore pleaded guilty to conspiracy to commit sex trafficking and use of an interstate facility to promote a prostitution business enterprise on June 9, 2014, and was sentenced to 10 years in prison on December 22, 2016.
This prosecution is the result of the joint investigation by the Eastern District of Wisconsin’s Human Trafficking Task Force and cooperative efforts of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the State of Wisconsin Department of Justice, the Milwaukee Police Department, the FBI, the U.S. Attorney’s Office for the Eastern District of Wisconsin and the Civil Rights Division’s Human Trafficking Prosecution Unit.
The case was prosecuted by Assistant U.S. Attorneys Karine Moreno-Taxman and Laura Kwaterski of the Eastern District of Wisconsin and Trial Attorney Vasantha Rao of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Attorney General Sessions Announces Appointment of James McHenry as Director of the Executive Office for Immigration ReviewRead the Press Release
Attorney General Jeff Sessions today announced the appointment of James McHenry as the permanent Director of the Executive Office for Immigration Review (EOIR) at the Department of Justice. McHenry has served as the Acting Director of EOIR since May 30, 2017.
“I am pleased to announce the appointment of James as the permanent Director of EOIR. Since his appointment as Acting Director last May, James has led EOIR in restoring its commitment to the timely and efficient adjudication of immigration cases, and in identifying additional common-sense improvements to the immigration court system,” said Attorney General Sessions. “James is an exceptionally talented and capable leader, and I am confident that he will continue to ensure that EOIR and its components will adjudicate cases in a manner that serves the national interest.”
“Under Attorney General Sessions’ leadership, EOIR has implemented a series of sensible reforms that aim to reduce the pending caseload by realigning the agency towards completing cases, increasing both productivity and capacity, and changing policies that lead to inefficiencies and waste,” said EOIR Director McHenry. “I look forward to building on the success of last year and further realizing our goal of cutting the pending caseload in half by 2020.”
EOIR was created on Jan. 9, 1983, through an internal department reorganization which combined the Board of Immigration Appeals (BIA) with the immigration judge function previously performed by the former Immigration and Naturalization Service (INS) (now part of the Department of Homeland Security). The Office of the Chief Administrative Hearing Officer (OCAHO) was added in 1987.
EOIR is headed by a director who is responsible for the supervision of the Chairman of BIA, the Chief Immigration Judge, the Chief Administrative Hearing Officer and all agency personnel. EOIR has more than 2,100 employees in its 59 immigration courts nationwide, at the BIA, at OCAHO, and at EOIR headquarters in Falls Church, Virginia.
Director McHenry has previously served in the Executive Office for Immigration Review; he first joined the agency in 2003 through the Attorney General’s Honors Program and returned to the agency in 2016, when he was appointed as an administrative law judge (ALJ) for EOIR OCAHO.
Last year, McHenry served as a Deputy Associate Attorney General working on a variety of immigration-related litigation matters and overseeing multiple components reporting to the Office of the Associate Attorney General. From 2014 to 2016, he served as an ALJ for the Office of Disability Adjudication and Review in the Social Security Administration. Prior to that, he worked for the Office of the Principal Legal Advisor (OPLA), Immigration and Customs Enforcement, Department of Homeland Security as an Assistant Chief Counsel and, later, as a Senior Attorney where he served as a lead attorney for national security, denaturalization, gang cases, anti-human trafficking operations, and worksite enforcement matters. He also served a detail as a Special Assistant United States Attorney for the Criminal Division, U.S. Attorney’s Office, Northern District of Georgia.
Director McHenry earned a Bachelor of Science from the Georgetown University School of Foreign Service, a Master of Arts in political science from the Vanderbilt University Graduate School, and a Juris Doctor from the Vanderbilt University Law School.
Rebeca Paloukos Sentenced to Prison for Theft of Government MoneyRead the Press Release
SHAWN N. ANDERSON, United States Attorney for Guam and the Northern Mariana Islands, announced that REBECA PALOUKOS, age 51, from Nimitz Hill, Piti, was sentenced today in District Court to a term of 18 months imprisonment for Theft of Government Money, in violation of 18 U.S.C. § 641. The Court also ordered Paloukos to serve three years of supervised release following her term of imprisonment. She must also pay restitution to the United States Office of Personnel Management (OPM) in the amount of $295,414.40, in addition to a $100.00 special assessment.
Paloukos and her mother had a joint bank account that was electronically funded by a Civil Service Retirement System annuity on a monthly basis. The defendant’s mother received the money as the surviving spouse of her deceased husband, a former federal employee. Following her mother’s death in 1997, Paloukos continued to withdraw money from the account as it was funded by OPM. OPM had not been informed of the mother’s death. Paloukos unlawfully received $295,414.40 over the period of the scheme.
The investigation was conducted by agents of the Office of Personnel Management Office of Inspector General and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Stephen F. Leon Guerrero.
Justice Department Secures First Denaturalization as a Result of Operation JanusRead the Press Release
On January 5, Judge Stanley R. Chesler of the U.S. District Court for the District of New Jersey entered an order revoking the naturalized U.S. citizenship of Baljinder Singh aka Davinder Singh, and canceling his Certificate of Naturalization, the Justice Department announced.
Following Judge Chesler’s order, Singh’s immigration status reverted from naturalized citizen to lawful permanent resident, rendering him potentially subject to removal proceedings at the Department of Homeland Security’s discretion.
Singh’s denaturalization is the first arising out of a growing body of cases referred to the Department of Justice by United States Citizenship and Immigration Services (USCIS) as part of Operation Janus. The action against Singh was filed contemporaneously with two other Operation Janus cases, as announced by the Justice Department on Sept. 19, 2017.
A Department of Homeland Security initiative, Operation Janus, identified about 315,000 cases where some fingerprint data was missing from the centralized digital fingerprint repository. Among those cases, some may have sought to circumvent criminal record and other background checks in the naturalization process. These cases are the result of an ongoing collaboration between the two departments to investigate and seek denaturalization proceedings against those who obtained citizenship unlawfully.
“The defendant exploited our immigration system and unlawfully secured the ultimate immigration benefit of naturalization, which undermines both the nation’s security and our lawful immigration system,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “The Justice Department will continue to use every tool to protect the integrity of our nation’s immigration system, including the use of civil denaturalization.”
USCIS dedicated a team to review these Operation Janus cases, and the agency has stated its intention to refer approximately an additional 1,600 for prosecution.
“We appreciate the dedication of our Justice Department partners as we work together to ensure the integrity of our nation’s legal immigration system,” said USCIS Director L. Francis Cissna. “I hope this case, and those to follow, send a loud message that attempting to fraudulently obtain U.S. citizenship will not be tolerated. Our nation’s citizens deserve nothing less.”
Baljinder Singh aka Davinder Singh, 43, a native of India, arrived at San Francisco International Airport on Sept. 25, 1991, without any travel documents or proof of identity. He claimed his name was Davinder Singh. He was placed in exclusion proceedings, but failed to appear for his immigration court hearing and was ordered excluded and deported on Jan. 7, 1992. Four weeks later, on Feb. 6, 1992, he filed an asylum application under the name Baljinder Singh. He claimed to be an Indian who entered the United States without inspection. Singh abandoned that application after he married a U.S. citizen, who filed a visa petition on his behalf. Singh naturalized under the name Baljinder Singh on July 28, 2006. Singh has been residing in Carteret, New Jersey.
This case was investigated by USCIS and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case was prosecuted by Counsel for National Security Aaron Petty of OIL-DCS’s National Security and Affirmative Litigation Unit, with support from Deputy Chief Patrice Rodman of USCIS’s Office of the Chief Counsel, Northeast Law Division and Immigration Services Officer Caroline D’Angelo of USCIS’s Field Operations Directorate.
Attorney General Sessions Celebrates Law Enforcement Appreciation DayRead the Press Release
Attorney General Jeff Sessions issued the following statement on National Law Enforcement Appreciation Day, a day set aside to show support for the brave men and women who have dedicated themselves to protecting our communities:
“Serving as a law enforcement officer is an honorable profession that is demanding, dangerous, and all too often unappreciated. Those who have chosen law enforcement as a profession and who work selflessly day and night through the harshest of conditions are a special breed. We owe them our undying gratitude. And, while our gratitude should not be limited to a single day of the year, I would like to take this opportunity to reiterate my deep and sincere appreciation to all serving in tribal, local, state, and federal law enforcement across the country for the daily sacrifices they make to serve and protect our communities.”
Today Attorney General Sessions also visited the Washington, D.C. Fraternal Order of Police (FOP) Lodge with Metropolitan Police Department Auxiliary Police Officers to express his gratitude and support for them and their work.
Throughout his tenure as Attorney General, Jeff Sessions has shown unwavering support for law enforcement officers:International Association of Chiefs of Police Midyear Conference April 2017
Bureau of Prisons Correctional Workers Week Memorial Service May 2017
Sergeants Benevolent Association of New York City Award Presentation May 2017
National Law Enforcement Officers Memorial Fund 29th Annual Candlelight Vigil May 2017
International Law Enforcement Academy Graduation Ceremony July 2017
41st Annual National Organization of Black Law Enforcement Executives Training Conference and Exhibition August 2017
63rd Biennial Conference of the National Fraternal Order of Police August 2017
Oklahoma Sheriffs’ Association October 2017
Major Cities Chiefs Association 2017 Fall Meeting October 2017
International Association of Chiefs of Police October 2017
National Fusion Center Association November 2017
The Attorney General has spoken to law enforcement audiences across America, including in Pennsylvania, Oregon, Nevada, Tennessee, New York, Florida, Virginia, Missouri, West Virginia, Georgia, Maryland, North Carolina, Alabama, Massachusetts, Wisconsin, and Ohio—all to show his support for the men and women in blue.Justice Department Reaches Agreement with Denver to Improve AccessibilityRead the Press Release
The Department of Justice today announced an agreement with Denver, Colorado, to improve access to civic life for people with disabilities. The agreement was reached under Project Civic Access (PCA), the Department’s initiative to ensure that cities, towns, and counties throughout the country comply with the Americans with Disabilities Act (ADA).
Under the agreement, Denver will ensure that its services, programs, and activities are accessible to people with disabilities. Based on surveys conducted by the United States as part of its investigation, the agreement requires Denver to remedy inaccessible features at courthouses, emergency shelters, libraries, parking lots, polling places, and parks to make these facilities accessible to persons with disabilities. In addition, to improve communication with people with hearing disabilities, Denver will contract with sign language interpreters and use Relay Colorado and text-to-911 on calls. Denver has also agreed to ensure that its emergency operations plan is accessible, to provide training to its employees on the ADA, and to survey certain facilities that were not already surveyed by the Department
“Denver has committed to ensuring all of its residents, including persons with disabilities, have access to county and city services and programs,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We applaud Denver for taking this step.”
This agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments.
For more information about the ADA, today’s agreement, the Project Civic Access initiative, or the ADA Best Practices Tool Kit for state and local governments, individuals may access the ADA Web page at http://www.ada.gov/civicac.htm or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Attorney General Sessions Applauds China for Restricting Two Fentanyl PrecursorsRead the Press Release
Today Attorney General Jeff Sessions applauded the Chinese government for announcing that it would restrict two chemical precursors to fentanyl.
“Synthetic opioids are killing thousands of people in communities across this nation, and we know that many of these substances originated in China,” Attorney General Sessions said. “President Trump and I have repeatedly brought up this issue with the Chinese government, and we are working to restrict the flow of these drugs to our country. I am pleased to see China taking steps that will protect not just their own people from this poison, but the American people, too. I hope that China will continue to take steps like this and eventually schedule all fentanyl analogues, just as the DEA is doing.”
In 2017, China scheduled a number of fentanyl-class substances, including carfentanil, furanyl fentanyl, valeryl fentanyl, acryl fentanyl, U-47700, MT-45, PMMA, and 4,4’ DMAR. Last week, China’s Ministry of Public Security announced that, effective Feb. 1, NPP and 4ANPP, substances that can be used to make illicit fentanyl, would also be scheduled.
U.S. Department of Justice and Chinese officials maintain frequent contact to collaborate and share data on the threat from fentanyl-class substances. Information-sharing includes scientific data, trafficking trends, and sample exchanges. This dialogue has resulted in more effective methods for identifying deadly substances for government control.
Attorney General Sessions and Deputy Attorney General Rosenstein both requested China’s scheduling action in meetings with then-State Councilor Guo Shengkun of the Chinese Ministry of Public Security. Deputy Attorney General Rosenstein met with then-State Councilor Guo in Beijing, China on Sept. 25, 2017 and the Attorney General met with him in Washington, D.C. on Oct. 3 and 4, 2017.
In October, Deputy Attorney General Rosenstein announced the first-ever indictment of Chinese nationals for attempting to distribute massive quantities of synthetic opioids in two different regions of the United States.
It is estimated that, in 2016, more than 20,000 Americans were killed by overdoses of fentanyl or fentanyl analogues, making these the deadliest drugs in America. According to the U.S.-China Commission, a majority of the fentanyl products in the United States originated in China.Justice Department Issues Memo on Marijuana EnforcementRead the Press Release
The Department of Justice today issued a memo on federal marijuana enforcement policy announcing a return to the rule of law and the rescission of previous guidance documents. Since the passage of the Controlled Substances Act (CSA) in 1970, Congress has generally prohibited the cultivation, distribution, and possession of marijuana.
In the memorandum, Attorney General Jeff Sessions directs all U.S. Attorneys to enforce the laws enacted by Congress and to follow well-established principles when pursuing prosecutions related to marijuana activities. This return to the rule of law is also a return of trust and local control to federal prosecutors who know where and how to deploy Justice Department resources most effectively to reduce violent crime, stem the tide of the drug crisis, and dismantle criminal gangs.
"It is the mission of the Department of Justice to enforce the laws of the United States, and the previous issuance of guidance undermines the rule of law and the ability of our local, state, tribal, and federal law enforcement partners to carry out this mission," said Attorney General Jeff Sessions. "Therefore, today's memo on federal marijuana enforcement simply directs all U.S. Attorneys to use previously established prosecutorial principles that provide them all the necessary tools to disrupt criminal organizations, tackle the growing drug crisis, and thwart violent crime across our country."
Texas Man Sentenced to 15 Years in Prison for Hate CrimeRead the Press Release
Nigel Garrett, 21, was sentenced today to 15 years in prison for assaulting a man because of the victim’s sexual orientation, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Eastern District of Texas, and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Division announced.
According to the plea agreement, Garrett admitted that he, Anthony Shelton, and Chancler Encalade used Grindr, a social media dating platform for gay men, to arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted the victim, and made derogatory statements to the victim for being gay. The defendants brandished a firearm during the home invasion, and they stole the victim’s property, including his motor vehicle.
A federal grand jury previously had returned an eighteen-count superseding indictment, against Garrett, Shelton, Encalade and Cameron Ajiduah, that included charges for hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes. The indictment also charged the defendants with conspiring to cause bodily injury because of the victims’ sexual orientation during four home invasions in Plano, Frisco, and Aubrey, Texas, from January 17 to February 7, 2017. Anthony Shelton, Chancler Encalade, and Cameron Ajiduah subsequently pleaded guilty to hate crime charges from this indictment, and all three await sentencing.
“Hate crimes are an attack on a fundamental principle of the United States to be free from fear of violence because of your sexual orientation, gender identity, race, color, religion, or national origin,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice is committed to using every tool at its disposal to combat this type of violence.”
“Violence, in any form, is an affront to the American principles of freedom and safety that our communities are entitled to,” said Acting U.S. Attorney Brit Featherston. “The Department of Justice has made prosecution of violent crime a priority. The Eastern District of Texas, in prosecuting this case and others like it, intends to demonstrate that this priority is something more than just a slogan.”
The investigation is being conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Plano Police Department, and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
North Carolina Man Pleads Guilty to Mailing Threatening Letter to a U.S. District Judge, Former U.S. Attorney, and Assistant U.S. Attorney in North CarolinaRead the Press Release
A North Carolina convicted felon pleaded guilty today to mailing a threatening communication and retaliating against a federal official in the Western District of North Carolina.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge John A. Strong of the FBI’s Charlotte Field Office and U.S. Marshal Kelly M. Nesbit of the U.S. Marshals Service made the announcement.
George Victor Stokes, 41, mailed a letter threatening to kill a U.S. District Court Judge, the former U.S. Attorney for the Western District of North Carolina, and an Assistant U.S. Attorney for the Western District of North Carolina. Specifically, according to the Indictment, Stokes threatened to “blow” the head off of a U.S. District Court Judge. As a part of his guilty plea, Stokes admitted he sent the death threat as retaliation for the victims’ roles in the sentencing and prosecution of Stokes in a separate prior federal case.
A sentencing date has not yet been set.
FBI Charlotte and the U.S. Marshals Service for the Western District of North Carolina investigated the case. Trial Attorneys Matthew K. Hoff and Rachel E. Timm of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Justice Department Announces Funding Opportunities for Tribal CommunitiesRead the Press Release
The U.S. Department of Justice today announced the opening of the grant solicitation period for comprehensive funding to federally-recognized American Indian and Alaska Native tribal governments and tribal consortia to support public safety, victim services and crime prevention.
The Department’s Fiscal Year 2018 Coordinated Tribal Assistance Solicitation, or “CTAS,” posts today at https://www.justice.gov/tribal/open-solicitations. The solicitation contains details about available grants and describes how tribes, tribal consortia and Alaskan villages can apply for the funds.
The funding can be used to enhance law enforcement; bolster adult and juvenile justice systems; prevent and control juvenile delinquency; serve native victims of crimes such as child abuse, sexual assault, domestic violence, and elder abuse; and support other efforts to combat crime.
“We’re proud to offer American Indian and Alaska Native communities opportunities to continue to improve public safety, better serve victims of crime, and strengthen criminal justice systems,” said Associate Attorney General Rachel Brand. “CTAS projects support Native American women, ensure tribal self-determination, and further our shared goals of safe and secure communities for American Indian and Alaska Native peoples.”
Applications for CTAS are submitted online through the Department’s Grants Management System. Applicants must register with the Grants Management System prior to submitting an application. The application deadline is 9:00 p.m. EST, March 20, 2018.
For the FY 2018 CTAS, applicants will submit a single application and select from any or all of the nine competitive grant programs referred to as “purpose areas.” This approach allows the Department’s grant-making components to consider the totality of a tribal nation’s overall public safety needs.
The nine purpose areas are:
- Public Safety and Community Policing
- Comprehensive Tribal Justice Systems Strategic Planning
- Justice Systems and Alcohol and Substance Abuse
- Tribal Justice System Infrastructure Program
- Violence Against Women Tribal Governments Program
- Children’s Justice Act Partnerships for Indian Communities
- Comprehensive Tribal Victim Assistance Program
- Juvenile Justice Wellness Courts
- Tribal Youth Program
In an effort to provide guidance on the Fiscal Year 2018 CTAS, the Department is sponsoring a series of webinars to educate applicants on CTAS application requirements. For details, including how to register for these webinars, visit https://www.justice.gov/tribal/open-solicitations for the webinar schedule.
Additionally, tribes and tribal consortia may also be eligible for non-tribal federal grant programs and are encouraged to explore other funding opportunities, which may be found at DOJ’s Tribal Justice and Safety website at https://www.justice.gov/tribal/open-solicitations or the www.grants.gov website.
CTAS is administered by the Department’s Offices of Justice Programs, Community Oriented Policing Services, and Violence Against Women.
Today’s announcement is part of the DOJ’s ongoing initiative to increase engagement, coordination and action on public safety in tribal communities.
Former Executive Admits Guilt in Antitrust Conspiracy Affecting Water Treatment ChemicalsRead the Press Release
A former executive pleaded guilty today in the District of New Jersey for his role in a conspiracy to eliminate competition by rigging bids, allocating customers, and fixing the price for liquid aluminum sulfate sold to municipalities and pulp and paper companies in the United States.
Brian C. Steppig, former director of sales and marketing for a water treatment chemicals manufacturer headquartered in Lafayette, Indiana, admitted to agreeing with competitors, from approximately 2005 until February 2011, not to compete for contracts for liquid aluminum sulfate, a coagulant used by municipalities to treat drinking and waste water, and by pulp and paper companies in their manufacturing processes.
“Today’s result reflects the Antitrust Division’s ongoing efforts to hold accountable those who seek to corrupt the competitive process and cheat customers,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “This offense was particularly egregious, counting among its victims cities and towns throughout the Southeastern United States that relied on the conspirators’ products to provide clean water to their residents.”
“The FBI is thorough in ensuring that anyone intent on corrupting our free market system is brought to justice,” said Special Agent in Charge Timothy Gallagher of the FBI's Newark Division. “Corruption and collusion at any level in our society is unacceptable as it has such a negative impact on the consumer.”
According to court documents, Steppig and his co-conspirators agreed not to pursue each other’s historical customers. To carry out that agreement, Steppig and his co-conspirators discussed prices to be quoted to customers and submitted intentionally losing bids to favor the intended winner.
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 if either amount is greater than the statutory maximum fine.
Including Steppig, two individuals and one company have pleaded guilty to charges arising out of this federal investigation of collusion in the liquid aluminum sulfate industry.
The investigation was conducted by the Antitrust Division’s New York Office and the FBI’s New Jersey Office. Anyone with information regarding price fixing, bid rigging or customer allocation in the liquid aluminum sulfate industry should contact the Antitrust Division’s New York Office at 212-335-8000, call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.htm.
Attorney General Sessions Appoints 17 Current and Former Federal Prosecutors as Interim United States AttorneysRead the Press Release
Attorney General Jeff Sessions today announced the appointment of 17 federal prosecutors as Interim United States Attorneys pursuant to 28 U.S.C. § 546. In a number of United States Attorney’s Offices across the country, First Assistant United States Attorneys are currently serving as Acting United States Attorneys under the Vacancies Reform Act. However, on Jan. 4, 2018, some of those Acting United States Attorneys will have served the maximum amount of time permitted under the Act. The appointments announced by the Attorney General today fill these vacancies.
“United States Attorneys lead federal prosecutions across this country, taking deadly drugs and criminals off of our streets and protecting the safety of law-abiding people, as well as representing the United States in civil litigation.” said Attorney General Sessions. “As a former U.S. Attorney myself, I have seen firsthand the impact that these prosecutors have and it is critical to have U.S. Attorneys in place during this time of rising violent crime, a staggering increase in homicides, and an unprecedented drug crisis."
“That is why, today, I am appointing 17 current and former federal prosecutors to serve as U.S. Attorneys on an interim basis. Each has excellent prosecution skills and the temperament necessary to succeed in this critical role—and they have already proven that with a number of accomplishments on behalf of the American people. I want to thank them for stepping up to take this difficult but noble job. I also want to thank those First Assistant United States Attorneys who temporarily stepped up to lead their offices as Acting U.S. Attorneys and who are now returning to their roles as First Assistants.”
The Attorney General has appointed the following individuals to serve as Interim United States Attorneys:
Shawn Anderson – Districts of Guam and the Northern Mariana Islands
Geoffrey Berman – Southern District of New York
Gregory Brooker – District of Minnesota
Craig Carpenito – District of New Jersey
Stephen Dambruch – District of Rhode Island
Richard Donoghue – Eastern District of New York
Dayle Elieson – District of Nevada
Duane Evans – Eastern District of Louisiana
Timothy Garrison – Western District of Missouri
Nick Hanna – Central District of California
Joseph Harrington – Eastern District of Washington
Grant Jaquith – Northern District of New York
Maria Chapa Lopez – Middle District of Florida
Kenji Price – District of Hawaii
Matthew Schneider – Eastern District of Michigan
Gretchen Shappert – District of the Virgin Islands
Alexander Van Hook – Western District of LouisianaDerry Man Sentenced to over Seven Years in Prison for Cocaine TraffickingRead the Press Release
CONCORD, N.H. - Edwin Ruiz, 30, of Derry, was sentenced in federal court to serve 90 months in prison for cocaine trafficking, Acting United States Attorney John J. Farley announced today.
Court filings and statements made in court established that on December 1, 2016, Ruiz was driving a vehicle stopped by the Manchester Police Department. A search of the car resulted in the seizure of $8,264 and 799.8 grams of cocaine.
Ruiz previously pleaded guilty to possessing cocaine with intent to distribute on September 19, 2017. The cash seized from Ruiz was forfeited to the United States.
“As we continue to fight against the deadly problems posed by opioids, the law enforcement community also remains committed to working together to stop the distribution of other dangerous illegal drugs,” said Acting U.S. Attorney Farley. “I commend the work of the law enforcement officers in this case. Their efforts prevented a substantial quantity of cocaine from being distributed in the Granite State.”
This matter was investigated by the Manchester Police Department and the Drug Enforcement Administration and was prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.
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Keppel Offshore & Marine Ltd. and U.S. Based Subsidiary Agree to Pay $422 Million in Global Penalties to Resolve Foreign Bribery CaseRead the Press Release
Keppel Offshore & Marine Ltd. (KOM), a Singapore-based company that operates shipyards and repairs and upgrades shipping vessels, and its wholly owned U.S. subsidiary, Keppel Offshore & Marine USA Inc. (KOM USA), have agreed to pay a combined total penalty of more than $422 million to resolve charges with authorities in the United States, Brazil and Singapore arising out of a decade-long scheme to pay millions of dollars in bribes to officials in Brazil. KOM USA pleaded guilty today in connection with the resolution. In addition, a guilty plea by a former senior member of KOM’s legal department was unsealed.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York, and Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division made the announcement.
“Today’s resolution once again underscores the importance of the Department of Justice’s collaboration with foreign authorities to hold corrupt companies and individuals accountable for their crimes, while ensuring the fair and appropriate allocation of fines and penalties,” said Acting Assistant Attorney General Cronan. “This case also represents the first coordinated FCPA resolution with Singapore and the most recent of several coordinated resolutions with Brazil. The Criminal Division is committed to working with our international partners to ensure that honest, law abiding companies are able to compete on a level playing field across the globe.”
“The resolutions with KOM and its U.S. subsidiary are the result of a multinational effort to investigate and prosecute a corruption scheme that resulted in the payment by the defendant companies of over $50 million in bribes to Brazilian officials and in profits for the defendant companies of over $350 million from business corruptly obtained in Brazil,” said Acting U.S. Attorney Rohde. “In an attempt to conceal their crimes, the defendants used the global financial system – including the United States banking system – to disguise the source and disbursement of the bribe payments by passing funds through a series of shell companies. The United States, working with its law enforcement partners abroad, will continue to hold responsible those corporations and individuals who seek to enrich themselves through the corruption of government officials and legitimate governmental functions.”
“The resolution to this investigation shows to those around the world that the FBI and our law enforcement partners are dedicated to work together to bring justice to companies who play outside the rule of law,” said FBI Assistant Director Richardson. “The FBI won’t stand by while individuals operate their business illegally using bribes.”
KOM entered into a deferred prosecution agreement with the Department in connection with a criminal information filed today in the Eastern District of New York charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. The case is assigned to U.S. District Judge Kiyo A. Matsumoto. In addition, KOM USA pleaded guilty and was sentenced by Judge Matsumoto on a one-count criminal information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement with the Department, KOM will pay a total criminal fine of $422,216,980, with a criminal penalty due to the United States of $105,554,245, including a $4,725,000 criminal fine paid by KOM USA. As part of the deferred prosecution agreement, KOM also committed to implement rigorous internal controls and to cooperate fully with the Department’s ongoing investigation.
In related proceedings, the company settled with the Ministério Público Federal (MPF) in Brazil and the Attorney General’s Chambers (AGC) in Singapore. The United States will credit the amount the company pays to Brazil and Singapore under their respective agreements, with Brazil receiving $211,108,490, equal to 50 percent of the total criminal penalty, and Singapore receiving up to $105,554,245, equal to 25 percent of the total criminal penalty.
The Department also unsealed charges today against a former senior member of KOM’s legal department, who pleaded guilty to one count of conspiracy to violate the FCPA on Aug. 29, 2017 in the Eastern District of New York. He is awaiting sentencing.
According to admissions and court documents, beginning by at least 2001 and continuing until at least 2014, KOM conspired to violate the FCPA by paying approximately $55 million in bribes to officials at the Brazilian state-owned oil company Petrobras and to the then-governing political party in Brazil, in order to win 13 contracts with Petrobras and another Brazilian entity. KOM effectuated and concealed the bribe payments by paying outsized commissions to an intermediary, under the guise of legitimate consulting agreements, who then made payments for the benefit of the Brazilian officials and the Brazilian political party.
In reaching the resolutions with the Department, KOM and KOM USA received credit for their substantial cooperation with the Department’s investigation and for taking extensive remedial measures. For example, KOM has terminated and otherwise disciplined employees involved in the criminal conduct, and it has implemented an enhanced system of compliance and internal controls to address and mitigate corruption risks. Accordingly, the criminal penalty reflects a 25 percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range.
The case is being investigated by the FBI’s International Corruption Squad in Houston. Trial Attorneys Derek J. Ettinger and David M. Fuhr and Assistant Chief Christopher J. Cestaro of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorneys Alixandra Smith and Patrick Hein of the Eastern District of New York, are prosecuting the case.
The MPF in Brazil and the AGC in Singapore provided significant assistance in this matter, as did the Criminal Division’s Office of International Affairs.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Justice Department Requires Vulcan to Divest 17 Aggregate Facilities in Order to Acquire Aggregates USARead the Press Release
The Department of Justice announced today that it has reached a settlement that will require Vulcan Materials Company to divest all of Aggregates USA, LLC’s active aggregate quarries, plants, and yards in the Knoxville, Tennessee, Tri-Cities, Tennessee, and Abingdon, Virginia areas in order for it to proceed with its proposed $900 million acquisition of Aggregates USA from SPO Partners.
The Department’s Antitrust Division and Tennessee’s Attorney General filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns.
“Without relying on a regulatory behavioral decree, these divestitures will ensure that customers, and ultimately taxpayers, in Tennessee and Virginia continue to benefit from robust competition and competitive prices,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “The acquisition, as originally proposed, would have eliminated one of the two suppliers of coarse aggregate in parts of east Tennessee and southwest Virginia.”
According to the department’s complaint, Vulcan and Aggregates USA produce and sell coarse aggregate, a type of crushed stone, to customers such as the Tennessee and Virginia Departments of Transportation, highway construction contractors, and suppliers of asphalt concrete and ready mix concrete. Coarse aggregate, an essential input in asphalt concrete and ready mix concrete, is used to build, pave, and repair roads and highways, and is used widely in other types of construction. The complaint alleges that Vulcan and Aggregates USA are the only two producers of coarse aggregate in the Knoxville, Tennessee, Tri-Cities, Tennessee, and Abingdon, Virginia areas. According to the complaint, the loss of competition between Vulcan and Aggregates USA would likely result in higher prices and poorer customer service for aggregate customers in those areas.
Under the terms of the proposed settlement, Vulcan must divest Aggregates USA’s 13 active quarries and yards, and four inactive quarries, in the Knoxville, Tennessee, Tri-Cities, Tennessee, and Abingdon, Virginia areas to Blue Water Industries, or an alternate acquirer approved by the United States. The department said that the divestitures will remedy the acquisition’s anticompetitive effects by providing the acquirer with the quarries, including substantial reserves, and other assets necessary to compete in these local markets.
Vulcan, a New Jersey corporation headquartered in Birmingham, Alabama, is one of the largest producers of coarse aggregate and construction materials in the United States, with facilities in 20 states and the District of Columbia. In 2016, Vulcan’s revenues were approximately $3.5 billion.
SPO Partners, a Delaware limited partnership headquartered in Mill Valley, California, invests in a wide range of industries, including industrial materials, media, telecommunications, energy, power, and real estate. SPO has more than $7 billion in assets under management. SPO acquired Aggregates USA in 2010.
Aggregates USA, a limited liability company headquartered in Birmingham, Alabama, produces and sells aggregate in Florida, Georgia, Tennessee, and Virginia. In 2016, Aggregates USA’s revenues were approximately $124 million.
As required by the Tunney Act, the proposed consent decree, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 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.
Attorney General Sessions Reiterates Support of DEA Efforts to Investigate Hezbollah’s Drug Trafficking and Related Activities and Orders Review of Prior DEA InvestigationsRead the Press Release
Attorney General Jeff Sessions today directed a review of the handling of Project Cassandra, a law enforcement initiative targeting Hezbollah’s drug trafficking and related operations in the United States and abroad, to evaluate allegations that certain matters were not properly prosecuted and to ensure all matters are appropriately handled.
“Protecting our citizens from terrorist organizations and combatting the devastating drug crisis gripping our nation are two of the Justice Department’s top priorities,” said Attorney General Sessions. “Operations designed to investigate and prosecute terrorist organizations that are also fueling that drug crisis must be paramount in this administration. The DEA has worked tirelessly on this front. I am committed to giving our hard working and dedicated DEA agents all the tools that they need to allow them to shut down these drug rings.
“While I am hopeful that there were no barriers constructed by the last administration to allowing DEA agents to fully bring all appropriate cases under Project Cassandra, this is a significant issue for the protection of Americans. We will review these matters and give full support to investigations of violent drug trafficking organizations
“The Department of Justice is absolutely committed to investigating and prosecuting international drug trafficking organizations and with the assistance of our DEA and FBI agents we will leave no stone unturned as we work to making America safer.”
Justice Department Requires TransDigm Group to Divest Airplane Restraint Businesses Acquired from TakataRead the Press Release
The Department of Justice announced today that TransDigm Group Incorporated will be required to divest two businesses it acquired from Takata Corporation. The divestitures will restore competition in markets for several types of restraint systems used on commercial airplanes. TransDigm acquired the businesses—SCHROTH Safety Products GmbH and SCHROTH Safety Products LLC (collectively, “SCHROTH”)—from Takata in February 2017 in a $90 million transaction that, due to its structure, was not reportable under the Hart-Scott-Rodino Antitrust Improvements Act.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia challenging the consummated acquisition. At the same time, it filed a proposed settlement that, if approved by the court, would resolve the Department’s competitive concerns.
“Today’s settlement, which requires TransDigm to divest the entire SCHROTH business, restores competition without relying on a regulatory behavioral decree,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “TransDigm’s AmSafe subsidiary is the world’s largest supplier of restraint systems used on commercial airplanes and SCHROTH was its only meaningful competitor.”
According to the Department’s complaint, AmSafe and SCHROTH develop, manufacture, and sell a wide range of restraint systems used on commercial airplanes, including traditional two-point lapbelts, three-point shoulder belts, technical restraints, and more advanced “inflatable” restraint systems such as airbags. The complaint alleges that prior to the acquisition, SCHROTH was a growing competitive threat to AmSafe that was challenging AmSafe on price and investing heavily in the research and development of new restraint technologies. According to the complaint, the acquisition eliminated TransDigm’s most significant competitor, and the loss of competition between AmSafe and SCHROTH was likely to result in higher prices and reduced innovation.
Under the terms of the proposed settlement, TransDigm must divest the entirety of SCHROTH, including its facilities in Pompano Beach, Florida, and Arnsberg, Germany, to a consortium between Perusa Partners Fund 2, L.P. and SSP MEP Beteiligungs GmbH & Co. KG (MEP KG), or an alternate acquirer approved by the United States. Pursuant to an agreement with the Antitrust Division, TransDigm held SCHROTH separate from AmSafe during the pendency of the Division’s investigation.
Perusa is a diversified German private equity fund that invests in mid-sized companies. MEP KG is a German limited partnership owned by several members of the existing management team of SCHROTH, including executives who have extensive experience in the airplane restraint systems business. The Department said that the divestiture will remedy the acquisition’s anticompetitive effects by quickly reestablishing SCHROTH as an independent competitor.
TransDigm, a Delaware corporation headquartered in Cleveland, Ohio, is a leading global designer, manufacturer, and supplier of highly engineered airplane components. In 2016, TransDigm’s global revenues were $3.1 billion. TransDigm’s AmSafe subsidiary is a Delaware corporation headquartered in Phoenix, Arizona. AmSafe had global revenues of approximately $198 million in 2016.
SCHROTH Safety Products GmbH (SSPG) is a German limited liability corporation based in Arnsberg, Germany. SCHROTH Safety Products LLC (SSPL) is a Delaware corporation based in Pompano Beach, Florida. SSPG and SSPL collectively had approximately $37 million in revenue in fiscal year 2016.
As required by the Tunney Act, the proposed consent decree, along with the Department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 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.
Justice Department Recovers over $3.7 Billion from False Claims Act Cases in Fiscal Year 2017Read the Press Release
The Department of Justice obtained more than $3.7 billion in settlements and judgments from civil cases involving fraud and false claims against the government in the fiscal year ending Sept. 30, 2017, Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division announced today. Recoveries since 1986, when Congress substantially strengthened the civil False Claims Act, now total more than $56 billion.
“Every day, dedicated attorneys, investigators, analysts, and support staff at every level of the Justice Department are working to root out fraud and hold accountable those who violate the law and exploit critical government programs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The recoveries announced today are a testament to the efforts of these valuable public servants and a message to those who do business with the government that fraud and dishonesty will not be tolerated.”
Of the $3.7 billion in settlements and judgments, $2.4 billion involved the health care industry, including drug companies, hospitals, pharmacies, laboratories, and physicians. This is the eighth consecutive year that the department’s civil health care fraud settlements and judgments have exceeded $2 billion. The recoveries included in the $2.4 billion reflect only federal losses. In many of these cases, the department was instrumental in recovering additional millions of dollars for state Medicaid programs.
In addition to combatting health care fraud, the False Claims Act serves as the government’s primary civil remedy to redress false claims for government funds and property under government programs and contracts relating to such varied areas as defense and national security, food safety and inspection, federally insured loans and mortgages, highway funds, small business contracts, agricultural subsidies, disaster assistance, and import tariffs.
Health Care Fraud
The department investigates and resolves matters involving a wide array of health care providers, goods and services. The department’s health care fraud recoveries restore valuable assets to federally funded programs, such as Medicare, Medicaid, and TRICARE. But just as important, the department’s vigorous pursuit of health care fraud prevents billions more in losses by deterring others who might otherwise try to cheat the system for their own gain.
The largest recoveries involving the health care industry this past year – over $900 million – came from the drug and medical device industry. Shire Pharmaceuticals LLC paid $350 million to resolve allegations that Shire and the company it acquired in 2011, Advanced BioHealing (ABH), induced clinics and physicians to use or overuse its bioengineered human skin substitute by offering lavish dinners, drinks, entertainment and travel; medical equipment and supplies; unwarranted payments for purported speaking engagements and bogus case studies; and cash, credits and rebates. In addition to these kickback allegations, the settlement also resolved allegations brought by relators that Shire and ABH unlawfully marketed the skin substitute for uses not approved by the FDA, made false statements to inflate the price of the product, and caused improper coding, verification, or certification of claims for the product and related services. The settlement included $343.9 million in federal recoveries, and another $6.1 million in recoveries to state Medicaid programs.
In another important case, drug manufacturer Mylan Inc. paid approximately $465 million to resolve allegations that it underpaid rebates owed under the Medicaid Drug Rebate Program by erroneously classifying its patented, brand name drug EpiPen – which has no therapeutic equivalents or generic competition – as a generic drug to avoid its obligation to pay higher rebates. Between 2010 and 2016, Mylan increased the price of EpiPen by approximately 400 percent yet paid only a fixed 13 percent rebate to Medicaid during the same period based on EpiPen’s misclassification as a generic drug. Mylan paid approximately $231.7 million to the federal government and $213.9 million to state Medicaid programs.
The department also reported substantial recoveries from other health care providers. Life Care Centers of America Inc. and its owner agreed to pay $145 million to settle allegations that it caused skilled nursing facilities to submit false claims for rehabilitation therapy services that were not reasonable, necessary, or skilled. This was the largest civil settlement with a skilled nursing facility chain in the history of the False Claims Act. The government alleged that Life Care instituted corporate-wide policies and practices designed to place beneficiaries in the highest level of Medicare reimbursement – known as “Ultra High” – irrespective of the clinical needs of the patients, resulting in the provision of unreasonable and unnecessary therapy to many beneficiaries. Life Care also allegedly sought to keep patients longer than necessary in order to continue billing for rehabilitation therapy.
In addition, eClinicalWorks (ECW) – a national electronic health records software vendor – and certain of its employees paid $155 million to resolve allegations that they falsely obtained certification for the company’s electronic health records software by concealing from its certifying entity that its software did not comply with the requirements for certification. For example, rather than programming all the required standardized drug codes into its software, the company allegedly “hardcoded” into its software only the drug codes required for testing. As a result of the deficiencies in its software, ECW allegedly caused physicians who used its software to submit false claims for federal incentive payments. The United States also alleged that ECW paid unlawful kickbacks to certain customers in exchange for promoting its product.
“While we encourage voluntary reporting of suspected federal violations through self-disclosures, compliance guidance, and corporate integrity agreements, the False Claims Act holds accountable those health care organizations unwilling to comply with law,” said Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services. “Large health care recoveries benefit vulnerable Medicare and Medicaid beneficiaries as well as the taxpayers who support these programs.”
Housing and Mortgage Fraud
The department reported settlements and judgments totaling over $543 million in the areas of housing and mortgage fraud this past fiscal year. In September 2017, a unanimous jury in Houston, Texas, found that Allied Home Mortgage Capital Corporation and Allied Home Mortgage Corporation violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and awarded the government over $296 million. The court also entered judgment for over $25 million against Allied’s President and Chief Executive Officer (CEO). At trial, the government presented evidence that Allied falsely certified that thousands of high risk, low quality loans were eligible for Federal Housing Administration (FHA) insurance and then submitted insurance claims to FHA when any of those loans defaulted. The jury also heard evidence that, to evade oversight and disguise default rates, Allied Capital originated FHA-insured loans from more than one hundred “shadow” branch offices without the authorization of HUD. In addition, the jury received evidence that Allied’s quality control department submitted falsified quality control reports to HUD auditors and falsely certified that Allied was in compliance with HUD quality control guidelines. Allied has appealed the judgment.
In addition to the judgment against Allied, the Department secured a settlement with PHH Mortgage for $65 million and Financial Freedom for $89 million. PHH Mortgage admitted that it had originated and endorsed residential mortgages as eligible for federal insurance by the FHA that did not meet underwriting requirements intended to reduce the risk of default. The government alleged that although internal reports identified high rates of underwriting deficiencies, PHH Mortgage failed to report such deficiencies to the authorities as required under the program to enable the agency to prevent continued program violations and mounting losses. By originating and endorsing ineligible loans for FHA insurance, PHH Mortgage allegedly put borrowers at risk of losing their homes, and increased its mortgage profits at taxpayer expense while incurring little or no risk of its own. The settlement with Financial Freedom concerned the servicing of reverse mortgage loans, which allow older people to access equity in their homes. The United States alleged that Financial Freedom misrepresented its eligibility for certain insurance payments, thereby obtaining interest from FHA to which it was not entitled.
Procurement Fraud
In fiscal year 2017, the department aggressively pursued a variety of procurement fraud matters. For example, Agility Public Warehousing Co. KSC, a Kuwaiti company, as part of a global settlement, paid $95 million to resolve civil fraud claims and agreed to forgo administrative claims against the United States seeking $249 million in additional payments under its military food contracts, among other terms. In its civil complaint, the United States alleged that Agility knowingly overcharged the Department of Defense for locally available fresh fruits and vegetables supplied to U.S. soldiers in Kuwait and Iraq by failing to disclose and pass through discounts and rebates it obtained from suppliers, as required by its contracts.
The department resolved two cases involving the alleged failure to follow applicable nuclear quality standards. Bechtel National Inc., Bechtel Corp., URS Corp. (the predecessor in interest to AECOM Global II LLC) and URS Energy and Construction Inc. (now known as AECOM Energy and Construction Inc.) agreed to pay $125 million to resolve allegations that they charged the Department of Energy (DOE) for deficient nuclear quality materials, services, and testing, and improperly used federal contract funds to pay for a comprehensive, multi-year campaign to lobby Congress and other federal officials. Energy & Process Corporation (E&P) agreed to pay $4.6 million to resolve allegations that it knowingly failed to perform required quality assurance procedures and supplied defective steel reinforcing bars (rebar) in connection with a contract to construct a DOE nuclear waste treatment facility.
CA Inc. agreed to pay $45 million to resolve allegations that it made false statements and claims in the negotiation and administration of a General Services Administration (GSA) contract for software licenses and maintenance services. The settlement resolved allegations that CA provided false information to the GSA about the discounts it gave commercial customers for its software licenses and maintenance services during contract negotiations and failed to provide government customers with additional discounts when commercial discounts improved.
Other Fraud Recoveries
The number and variety of judgments and settlements announced during fiscal year 2017 illustrate the diversity of cases pursued by the department to root out fraud and false claims against the government wherever they may be found.
For example, SolarCity Corporation agreed to pay $29.5 million to resolve allegations that it submitted inflated claims to the U.S. Department of the Treasury pursuant to Section 1603 of the American Recovery and Reinvestment Act of 2009. Under the Section 1603 Program, the Treasury paid a cash grant to construct or acquire qualified renewable solar energy systems. The settlement resolved allegations that SolarCity falsely overstated the cost bases of its solar energy properties in claims for Section 1603 funds in order to receive inflated grant payments from the Treasury. As part of the settlement, SolarCity and its affiliates also released all pending and future claims against the United States for additional Section 1603 payments.
Total Call Mobile LLC agreed to pay $30 million to resolve allegations that it defrauded the Lifeline Program, a federal government subsidy program that offers discounted mobile phone services to eligible low-income consumers. Total Call and its co-defendants allegedly submitted false claims for federal payments by seeking reimbursement for tens of thousands of consumers who did not meet Lifeline Program eligibility requirements. As part of the settlement, Total Call entered into a separate administrative agreement with the Federal Communications Commission and agreed to no longer participate in the Lifeline Program.
ADS Inc. and its subsidiaries agreed to pay $16 million to settle allegations that they violated the False Claims Act by knowingly conspiring with and causing purported small businesses to submit false claims for payment in connection with fraudulently obtained small business contracts. The settlement also resolved allegations that ADS engaged in improper bid rigging relating to certain of the fraudulently obtained contracts. The settlement with ADS ranked as one of the largest recoveries involving alleged fraud in connection with small business contracting eligibility.
Individual Accountability
The department continued to ensure individual accountability for corporate wrongdoing by pursuing False Claims Act and other civil remedies to redress fraud by individuals as well as corporations.
In some cases, individual owners and executives of private corporations agreed to be held jointly and severally liable for settlement payments with their corporations. For example, Girish Navani, Rajesh Dharampuriya, and Mahesh Navani, three of the founders of eClinicalWorks, agreed to joint and several liability for the $155 million settlement discussed above. In addition, three other eClinicalWorks employees – developer Jagan Vaithilingam and project managers Bryan Sequeira, and Robert Lynes – entered into separate settlement agreements to resolve liability for their alleged personal involvement in the conduct. Forrest Preston, the owner of Life Care Centers of America, agreed to joint and several liability for the $145 million settlement discussed above, and Nicholas and Gregory Melehov, the owners of Medstar Ambulance Inc., agreed to be jointly and severally liable for a $12.7 million settlement with their company.
The department also obtained more than $60 million in settlements and judgments with individuals under the False Claims Act that did not involve joint and several liability with the corporate entity. For example, after 21st Century Oncology LLC paid $19.75 million to resolve allegations that it billed federal health care programs for medically unnecessary laboratory tests, the department secured separate settlements with various individual urologists, including a $3.8 million settlement with Dr. Meir Daller, resolving allegations that the physicians referred unnecessary tests to a laboratory owned and operated by 21st Century Oncology. Other examples include Dr. Robert Windsor, a pain management physician who agreed to the entry of a $20 million consent judgment to resolve allegations that he billed federal health care programs for surgical monitoring services that he did not perform and for medically unnecessary diagnostic tests; Dr. Gary L. Marder, a physician and the owner and operator of the Allergy, Dermatology & Skin Cancer Centers in Port St. Lucie and Okeechobee, Florida, who agreed to the entry of an $18 million consent judgment in connection with the performance of radiation therapy services; Joseph Bogdan, the owner of AMI Monitoring Inc. (also known as Spectocor), who agreed to pay $1 million to resolve liability for his alleged involvement in billing Medicare for higher and more expensive levels of cardiac monitoring services than requested by the ordering physicians; and Siddhartha Pagidipati, the former CEO of Freedom Health, who agreed to pay $750,000 to resolve liability for his alleged involvement in an illegal scheme to maximize payment from the Medicare Advantage program.
Recoveries in Whistleblower Suits
Of the $3.7 billion in settlements and judgments reported by the government in fiscal year 2017, $3.4 billion related to lawsuits filed under the qui tam provisions of the False Claims Act. During the same period, the government paid out $392 million to the individuals who exposed fraud and false claims by filing a qui tam complaint.
The number of lawsuits filed under the qui tam provisions of the Act has grown significantly since 1986, with 669 qui tam suits filed this past year – an average of more than 12 new cases every week.
“Because those who defraud the government often hide their misconduct from public view, whistleblowers are often essential to uncovering the truth,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department’s recoveries this past year continue to reflect the valuable role that private parties can play in the government’s effort to combat false claims concerning government contracts and programs.”
In 1986, Senator Charles Grassley and Representative Howard Berman led the successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud. And in 2009, Senator Patrick J. Leahy, along with Senator Grassley and Representative Berman, championed the Fraud Enforcement and Recovery Act of 2009, which further strengthened the False Claims Act and its whistleblower provisions.
Mr. Readler also expressed his deep appreciation for the many dedicated public servants who investigated and pursued these cases throughout the Department’s Civil Division and the U.S. Attorneys’ Offices, as well as the agency Offices of Inspector General, and the many federal and state agencies that contributed to the Department’s recoveries this past fiscal year.
“One of the honors of leading the Civil Division is the pleasure of working with the many passionate, dedicated, and talented Department of Justice employees,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “These individuals have committed their careers to serving the American people and defending the interests of our great nation. The accomplishments announced today are largely the result of their hard work and sacrifices.”
The government’s claims in the matters described above are allegations only; except where indicated, there has been no determination of liability. The numbers contained in this press release may differ slightly from the original press releases due to accrued interest.
Joint Statement from Attorney General Sessions, FBI Director Wray, DNI Coats, CIA Director Pompeo, and NSA Director Rogers on FISA Section 702 ReauthorizationRead the Press Release
Reauthorizing Section 702 before it expires is vital to keeping the nation safe. Let us be clear: if Congress fails to act, vital intelligence collection on international terrorists and other foreign adversaries will be lost. The country will be less secure.
There is no substitute for Section 702. If Congress fails to reauthorize this authority, the Intelligence Community will lose valuable foreign intelligence information, and the resulting intelligence gaps will make it easier for terrorists, weapons proliferators, malicious cyber actors, and other foreign adversaries to plan attacks against our citizens and allies without detection. Section 702 has been instrumental in preventing attacks on the homeland and removing terrorists from the battlefield.
To be clear – Congress is not required to make any changes to Section 702. The Intelligence Community conducts and uses 702 collection in a manner that protects the privacy and civil liberties of individuals. Every single court that has reviewed Section 702 and queries of its data has found it to be constitutional. The Intelligence Community’s use of Section 702, which permits targeted surveillance only of foreign persons located outside the United States, is subject to extensive oversight and incorporates substantial protections to protect the privacy and civil liberties of individuals. In short, we believe Congress got it right in 2008 when it passed Section 702 and in 2012 when Congress reauthorized it. Nevertheless, the Intelligence Community continues to be open to reasonable reforms to Section 702 to further enhance the already-substantial privacy protections contained in the law, but we simply cannot support legislation that would impede the operational efficacy of this vital authority.
We also believe it is important that Congress reauthorize Section 702 before it expires on December 31, 2017. Although the current Section 702 certifications do not expire until April 2018, the Intelligence Community would need to start winding down its Section 702 program well in advance of that date. Winding down such a valuable program would force agencies to divert resources away from addressing foreign threats. Short-term extensions are not the long-term answer either, as they fail to provide certainty, and will create needless and wasteful operational complications. We urge Congress, therefore, to act quickly to reauthorize Section 702 in a manner that preserves the effectiveness of this critical national security law before it expires.Jeff Sessions
Attorney General of the United StatesChristopher Wray
Director, Federal Bureau of InvestigationDaniel R. Coats
Director of National IntelligenceMike Pompeo
Director, Central Intelligence AgencyAdmiral Michael S. Rogers
Director, National Security AgencyDepartments of Justice and Homeland Security Release Data on Incarcerated Aliens—94 Percent of All Confirmed Aliens in DOJ Custody Are Unlawfully PresentRead the Press Release
President Trump’s Executive Order on Enhancing Public Safety in the Interior of the United States requires the Department of Justice (DOJ) and the Department of Homeland Security (DHS) to collect relevant data and provide quarterly reports on data collection efforts. On Dec. 18, 2017, DOJ and DHS released the FY 2017 4th Quarter Alien Incarceration Report, complying with this order.[1] The report found that more than one-in-five of all persons in Bureau of Prisons custody were foreign born, and that 94 percent of confirmed aliens in custody were unlawfully present.
"The American people deserve a lawful system of immigration that serves the national interest," Attorney General Sessions said. "But at the border and in communities across America, our citizens are being victimized by illegal aliens who commit crimes. Nearly 95 percent of confirmed aliens in our federal prisons are here illegally. We know based on sentencing data that non-citizens commit a substantially disproportionate number of drug-related offenses, which contributes to our national drug abuse crisis. The simple fact is that any offense committed by a criminal alien is ultimately preventable. One victim is too many. It's time for Congress to enact the President's immigration reform agenda so that we start welcoming the best and brightest while turning away drug dealers, gang members, and other criminals."
“While the administration is working diligently to remove dangerous criminal aliens from our streets, this report highlights the fact that more must be done,” said Secretary of Homeland Security Kirstjen Nielsen. “We will continue to pursue President Trump’s immigration priorities, including securing the border, enhancing interior enforcement, and pursuing a merit-based immigration system, but Congress must act immediately to adopt obvious solutions to strengthen DHS and DOJ efforts to confront dangerous criminal aliens.”
Section 16 of the Executive Order directs the Secretary of Homeland Security and the Attorney General to collect relevant data and provide quarterly reports regarding: (a) the immigration status of all aliens incarcerated under the supervision of the Federal Bureau of Prisons; (b) the immigration status of all aliens incarcerated as federal pretrial detainees under the supervision of the United States Marshals Service; and (c) the immigration status of all convicted aliens in state prisons and local detention centers throughout the United States.
A total of 58,766 known or suspected aliens were in in DOJ custody at the end of FY 2017, including 39,455 persons in BOP custody and 19,311 in USMS custody. Of this total, 37,557 people had been confirmed by U.S. Immigration and Customs Enforcement (ICE) to be aliens (i.e., non-citizens and non-nationals), while 21,209 foreign-born people were still under investigation by ICE to determine alienage and/or removability
Among the 37,557 confirmed aliens, 35,334 people (94 percent) were unlawfully present. These numbers include a 92 percent unlawful rate among 24,476 confirmed aliens in BOP custody and a 97 percent unlawful rate among 13,081 confirmed aliens in USMS custody.
This report does not include data on the foreign-born or alien populations in state prisons and local jails because state and local facilities do not routinely provide DHS or DOJ with comprehensive information about their inmates and detainees—which account for approximately 90 percent of the total U.S. incarcerated population.
Information Regarding Immigration Status of Aliens Incarcerated Under the Supervision of the Federal Bureau of Prisons
The Department of Justice’s Bureau of Prisons (BOP) has an operational process for maintaining data regarding foreign-born inmates in its custody. On a quarterly basis, BOP supplies this information to U.S. Immigration and Customs Enforcement (ICE). ICE, in turn, analyzes that information to determine the immigration status of each inmate and provides that information back to BOP.
Out of the 185,507 inmates in BOP custody, 39,455 (21 percent) were reported by BOP as foreign-born. Further details regarding these 39,455 foreign-born inmates are as follows:
- 20,240 (51 percent) were unauthorized aliens who are subject to a final order of removal;
- 14,979 (38 percent) remain under ICE investigation;
- 2,374 (6 percent) were unlawfully present and now in removal proceedings;
- 1,852 (less than 5 percent) were lawfully present aliens but are now in removal proceedings; and
- 10 were aliens who have been granted relief or protection from removal.
Information Regarding the Immigration Status of Aliens Incarcerated as Federal Pretrial Detainees
USMS identified 19,311 aliens and foreign-born inmates under ICE investigation detained at USMS facilities. Further details regarding these 19,311 foreign-born inmates are as follows:
- 11,459 (59 percent) were aliens who are subject to a final order of removal;
- 6,230 (32 percent) remain under ICE investigation;
- 1,261 (6.5 percent) were unlawfully present and now in removal proceedings;
- 358 (less than 2 percent) were lawfully present but are now in removal proceedings; and
- 3 were aliens who have been granted relief or protection from removal.
Immigration Status of All Convicted Aliens Incarcerated in State Prisons and Local Detention Centers Throughout the United States
The Departments continue to progress towards establishing data collection of the immigration status of convicted aliens incarcerated in state prisons and local detention centers through the Department of Justice’s Office of Justice Programs, Bureau of Justice Statistics and the Department of Homeland Security’s Office of Immigration Statistics.
[1] The FY 2017 2nd Quarter report is available at: https://www.justice.gov/opa/pr/pursuant-executive-order-public-safety-department-justice-releases-data-incarcerated-aliens-0. Data for the 3rd quarter of FY 2017 is available at: https://www.dhs.gov/news/2017/08/01/pursuant-executive-order-public-safety-departments-justice-and-homeland-security.
Attorney General Jeff Sessions Rescinds 25 Guidance DocumentsRead the Press Release
Today, Attorney General Jeff Sessions announced that, pursuant to Executive Order 13777 and his November memorandum prohibiting certain guidance documents, he is rescinding 25 such documents that were unnecessary, inconsistent with existing law, or otherwise improper.
In making the announcement, the Attorney General said:
“Last month, I ended the longstanding abuse of issuing rules by simply publishing a letter or posting a web page. Congress has provided for a regulatory process in statute, and we are going to follow it. This is good government and prevents confusing the public with improper and wrong advice.”
“Therefore, any guidance that is outdated, used to circumvent the regulatory process, or that improperly goes beyond what is provided for in statutes or regulation should not be given effect. That is why today, we are ending 25 examples of improper or unnecessary guidance documents identified by our Regulatory Reform Task Force led by our Associate Attorney General Rachel Brand. We will continue to look for other examples to rescind, and we will uphold the rule of law.”
In March, President Donald Trump issued Executive Order 13777, which calls for agencies to establish Regulatory Reform Task Forces, chaired by a Regulatory Reform Officer, to identify existing regulations for potential repeal, replacement, or modification. The Department of Justice Task Force, chaired by Associate Attorney General Rachel Brand, began its work in May.
On November 17, the Attorney General issued a memorandum prohibiting DOJ components from using guidance documents to circumvent the rulemaking process and directed Associate Attorney General Brand to work with components to identify guidance documents that should be repealed, replaced, or modified.
The Task Force has already identified 25 guidance documents for repeal and is continuing its review of existing guidance documents to repeal, replace, or modify.
The list of 25 guidance documents that DOJ has withdrawn in 2017 is as follows:- ATF Procedure 75-4.
- Industry Circular 75-10.
- ATF Ruling 85-3.
- Industry Circular 85-3.
- ATF Ruling 2001-1.
- ATF Ruling 2004-1.
- Southwest Border Prosecution Initiative Guidelines (2013).
- Northern Border Prosecution Initiative Guidelines (2013).
- Juvenile Accountability Incentive Block Grants Program Guidance Manual (2007).
- Advisory for Recipients of Financial Assistance from the U.S. Department of Justice on Levying Fines and Fees on Juveniles (January 2017).
- Dear Colleague Letter on Enforcement of Fines and Fees (March 2016).
- ADA Myths and Facts (1995).
- Common ADA Problems at Newly Constructed Lodging Facilities (November 1999).
- Title II Highlights (last updated 2008).
- Title III Highlights (last updated 2008).
- Commonly Asked Questions About Service Animals in Places of Business (July 1996).
- ADA Business Brief: Service Animals (April 2002).
- Prior Joint Statement of the Department of Justice and the Department of Housing and Urban Development Group Homes, Local Land Use, and the Fair Housing Act (August 18, 1999).
- Letter to Alain Baudry, Esq., with standards for conducting internal audit in a non-discriminatory fashion (December 4, 2009).
- Letter to Esmeralda Zendejas on how to determine whether lawful permanent residents are protected against citizenship status discrimination (May 30, 2012).
- Common ADA Errors and Omissions in New Construction and Alterations (June 1997).
- Common Questions: Readily Achievable Barrier Removal and Design Details: Van Accessible Parking Spaces (August 1996).
- Website guidance on bailing-out procedures under section 4(b) and section 5 of the Voting Rights Act (2004).
- Americans with Disabilities Act Questions and Answers (May 2002).
- Statement of the Department of Justice on Application of the Integration Mandate of Title II of the Americans with Disabilities Act and Olmstead v. L.C. to State and Local Governments' Employment Service Systems for Individuals with Disabilities (October 31, 2016).
Two Defendants Plead Guilty in Multimillion Dollar Prize Promotion Scams Targeting Elderly VictimsRead the Press Release
Two individuals who ran multimillion dollar prize promotion scams entered guilty pleas Dec. 12 in federal court in Las Vegas, Nevada, the Department of Justice announced.
Glen Burke, 57, of Las Vegas, pleaded guilty to contempt and conspiracy charges arising from his operation of two predatory schemes that defrauded thousands of victims, many of whom were elderly, out of more than $20 million. Burke conducted those fraudulent campaigns in violation of a 1998 court order obtained by the Federal Trade Commission (FTC) permanently banning him from telemarketing and making misrepresentations to consumers. A co-defendant, Michael Rossi, 52, also of Las Vegas, also pleaded guilty in connection with one of Burke’s schemes.
“The Department of Justice is determined to punish the perpetrators of fraudulent schemes that exploit consumers, especially those that target the elderly or vulnerable,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “We will work with our partners at the FTC and the U.S. Postal Inspection Service to eradicate schemes that harm the elderly wherever we find them.”
Burke pleaded guilty to contempt for violating the court order prohibiting him from making misrepresentations to consumers. That charge stemmed from Burke running a mass-mailing operation that misled consumers into believing that they had won large cash prizes, often millions of dollars. Burke specifically mailed consumers solicitations that used fake names and, in many cases, looked like they came from law firms or financial institutions, advising consumers to pay a fee – usually $20 to $30 –to claim their promised winnings. Once consumers paid, however, Burke never sent any consumer a promised prize.
Burke, along with Rossi, also pleaded guilty to conspiracy to commit mail and wire fraud for running a fraudulent telemarketing operation. Telemarketers working for Burke and Rossi falsely told victims that they had won one of five valuable prizes, typically: a Chevy Camaro; a Boston Whaler boat; a diamond-and-sapphire bracelet; $3,000 cash; or a cruise that could be exchanged for $2,300. To claim the prize, consumers were told to pay hundreds, or in some cases thousands, of dollars. Once they paid, victims received a nearly worthless piece of costume jewelry or nothing at all.
Sentencing is scheduled on March 12, 2018. Under the contempt statute, Burke could be sentenced to any term of imprisonment and fine. Under the conspiracy statute, Burke and Rossi face a potential maximum sentence of 20 years in prison and a $250,000 fine. The court has the discretion to impose a lower sentence.
Principal Deputy Assistant Attorney General Readler commended the investigative efforts of the U.S. Postal Inspection Service and thanked the FTC for its valuable assistance. The case was prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Consumer Protection Branch of the Department of Justice’s Civil Division and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada.
The Department of Justice Announces Unprecedented Award to Police Executives and Unions to Create A Technical Assistance CenterRead the Press Release
The Department of Justice today announced a new $7 million award under the Office of Community Oriented Policing Services’ (COPS Office) Collaborative Reform Initiative for Technical Assistance. The award is to the International Association of Chiefs of Police (IACP), a nonprofit membership organization with 30,000 members in more than 150 countries that serves all ranks at the state, local, territorial, tribal, campus, and federal levels. IACP will be partnering with other prominent law enforcement stakeholder associations to create the Collaborative Reform Initiative Technical Assistance Center (CRI-TAC).
“This award embodies a field-driven vision for the Collaborative Reform Initiative and incorporates changes that I know are critically important to law enforcement,” said Attorney General Jeff Sessions. “Today’s announcement is part of a course correction that ensures that the Department’s Collaborative Reform Initiative will provide technical assistance to law enforcement agencies based on their own needs, not those dictated by the federal government.”
For the first time, police chiefs, unions and other law enforcement organizations will come together to provide tailored technical assistance to local policing agencies. While the award will go to IACP, there is a historic and unprecedented coalition represented by the law enforcement associations formally involved in the project:
- Federal Bureau of Investigation National Academy Associates (FBINAA)
- Fraternal Order of Police (FOP)
- International Association of Campus Law Enforcement Administrators (IACLEA)
- International Association of Directors of Law Enforcement Standards and Training (IADLEST)
- Major Cities Chiefs Association (MCCA)
- National Association of Women Law Enforcement Executives (NAWLEE)
- National Tactical Officers Association (NTOA)
“The IACP and the Fraternal Order of Police, along with six leading law enforcement leadership and labor organizations, will bring together our collective experience, subject matter expertise, and unparalleled reach in the field to build and deliver comprehensive technical assistance, informed by cutting-edge innovation and promising practices, that embraces a collaborative, supportive approach to serving law enforcement and the communities they are sworn to protect,” said IACP President Louis M. Dekmar, Chief of the LaGrange, Georgia, Police Department.
“The FOP is very pleased to partner with the IACP and the U.S. Department of Justice on the Collaborative Reform Initiative,” said Chuck Canterbury, National President of the Fraternal Order of Police. “Our members have a great deal of knowledge and experience from their own work in our streets and communities. Together, we can put this information and training to work to benefit all of our colleagues around the nation.”
“The Major Cities Chiefs Association has been very engaged in the discussion with the Department of Justice on revamping the entire collaborative reform process,” said Montgomery County, Maryland Police Chief Tom Manger. We look forward to a meaningful continued role in implementing this vision alongside colleagues from many other law enforcement groups.”
This partnership brings together the nation’s public safety leaders and will touch nearly every sector of the law enforcement field. Through the combined membership of over 420,000, the CRI-TAC will provide subject matter expertise; share resources and training materials for use in technical assistance delivery; and contribute to outreach, marketing, and membership engagement. Today’s award follows an earlier announcement from the COPS Office regarding significant changes to the Collaborative Reform Initiative to provide technical assistance and support “by the field, for the field.”
The Collaborative Reform Initiative provides critical and tailored technical assistance resources to state, local, territorial, and tribal law enforcement agencies on a wide variety of topics. Through the program, agencies receive technical assistance from leading experts in a range of public safety, crime reduction, and community policing topics. Law enforcement agencies that are interested in receiving technical assistance through the Collaborative Reform Initiative should visit the COPS Office website at https://cops.usdoj.gov/collaborativereform.
The COPS Office awards grants to hire community policing officers, develop and test innovative policing strategies, and provide training and technical assistance to community members, local government leaders, and all levels of law enforcement. Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.
Settlement Requires Clean Air Act Compliance at ArcelorMittal Monessen Coke PlantRead the Press Release
The United States and the Commonwealth of Pennsylvania have settled a federal court case against ArcelorMittal Monessen LLC (AMM), involving alleged Clean Air Act violations at AMM’s coke (purified coal) plant in Monessen, Pennsylvania.
The proposed consent decree, filed in U.S. District Court in Pittsburgh, resolves a joint federal-state complaint against AMM, which is a subsidiary of ArcelorMittal, the world’s largest steel making company.
Under the settlement, AMM will pay a $1.5 million penalty divided equally between the U.S. and Pennsylvania, and implement an estimated $2 million in air pollution controls to limit particulate and sulfur compound emissions.
“This settlement will reduce harmful air pollutants, benefiting the health and environment of residents around the Monessen coke plant,” said Acting Assistant Attorney General Jeffrey H. Wood for the Environment and Natural Resources Division of the Department of Justice. “The Department of Justice will continue to work with the EPA and other federal and state agencies to ensure that companies comply with the Clean Air Act.”
“This settlement demonstrates how EPA can work with our state partners to implement the Clean Air Act to reduce harmful air pollutants in communities,” said EPA Mid-Atlantic Regional Administrator Cosmo Servidio. “Because of the Act, Americans breathe less pollution and face lower risks of premature death and other serious health effects.”
“Through aggressive enforcement of the Clean Air Act, the Department of Justice, EPA, and the Commonwealth of Pennsylvania have brought relief to the residents of Monessen and the surrounding communities,” said Acting United States Attorney Soo C. Song for the Western District of Pennsylvania. “In addition to paying a significant civil penalty, AMM will invest in pollution-control measures designed to bring the company back into compliance with the Clean Air Act.”
The complaint alleges Clean Air Act violations based on inspections by the U.S. Environmental Protection Agency and the Pennsylvania Department of Environmental Protection, as well as follow-up requests for information. The alleged violations include excessive emissions of particulate matter from industrial operations.
Particulate matter emissions include microscopic solids or liquid droplets that can cause serious health problems when inhaled, particularly impacting children, the elderly, and those suffering from respiratory problems.
The proposed consent decree, available for review at https://www.justice.gov/enrd/consent-decrees, is subject to a 30-day public comment period and final court approval.
Settlement Requires Clean Air Act Compliance at ArcelorMittal Monessen Coke PlantRead the Press Release
The United States and the Commonwealth of Pennsylvania have settled a federal court case against ArcelorMittal Monessen LLC (AMM), involving alleged Clean Air Act violations at AMM’s coke (purified coal) plant in Monessen, Pennsylvania.
The proposed consent decree, filed in U.S. District Court in Pittsburgh, resolves a joint federal-state complaint against AMM, which is a subsidiary of ArcelorMittal, the world’s largest steel making company.
Under the settlement, AMM will pay a $1.5 million penalty divided equally between the U.S. and Pennsylvania, and implement an estimated $2 million in air pollution controls to limit particulate and sulfur compound emissions.
“This settlement will reduce harmful air pollutants, benefiting the health and environment of residents around the Monessen coke plant,” said Acting Assistant Attorney General Jeffrey H. Wood for the Environment and Natural Resources Division of the Department of Justice. “The Department of Justice will continue to work with the EPA and other federal and state agencies to ensure that companies comply with the Clean Air Act.”
“This settlement demonstrates how EPA can work with our state partners to implement the Clean Air Act to reduce harmful air pollutants in communities,” said EPA Mid-Atlantic Regional Administrator Cosmo Servidio. “Because of the Act, Americans breathe less pollution and face lower risks of premature death and other serious health effects.”
“Through aggressive enforcement of the Clean Air Act, the Department of Justice, EPA, and the Commonwealth of Pennsylvania have brought relief to the residents of Monessen and the surrounding communities,” said Acting United States Attorney Soo C. Song for the Western District of Pennsylvania. “In addition to paying a significant civil penalty, AMM will invest in pollution-control measures designed to bring the company back into compliance with the Clean Air Act.”
The complaint alleges Clean Air Act violations based on inspections by the U.S. Environmental Protection Agency and the Pennsylvania Department of Environmental Protection, as well as follow-up requests for information. The alleged violations include excessive emissions of particulate matter from industrial operations.
Particulate matter emissions include microscopic solids or liquid droplets that can cause serious health problems when inhaled, particularly impacting children, the elderly, and those suffering from respiratory problems.
The proposed consent decree, available for review at https://www.justice.gov/enrd/consent-decrees , is subject to a 30-day public comment period and final court approval.
Justice Department Welcomes Tribal Nations Leadership CouncilRead the Press Release
The Department of Justice welcomed representatives of the Tribal Nations Leadership Council (TNLC) to the department Monday and Tuesday for a series of discussions on how the United States and Tribal Nations can best work together to strengthen public safety and the government-to-government relationship.
On Tuesday, the TNLC met with Deputy Attorney General Rod Rosenstein, Associate Attorney General Rachel Brand, and Office of Tribal Justice Director Tracy Toulou, capping a two-day conference on a wide range of issues facing Indian Country.
“It is an honor to welcome the Tribal Nations Leadership Council, and to discuss ways to improve the lives of American Indians and Alaska Natives,” said Deputy Attorney General Rod Rosenstein. “We are working to support them and reduce the violent crime and drug abuse that is devastating communities across our nation.”
During a two-day conference on Monday and Tuesday, the Council covered a range of issues, including drug trafficking, prosecution and treatment, cooperation across jurisdictions, data collection and access to data, violence against women, civil rights and hate crimes. The group met with the U.S. Attorney from the District of Montana and representatives from the Office of Tribal Justice, Executive Office on U.S. Attorneys, Office on Violence Against Women, the Civil Rights Division, the Office of Justice Programs, the Environment and Natural Resources Division, the Office of Community Oriented Policing Services, the Drug Enforcement Administration, and the Federal Bureau of Investigation. The Bureau of Indian Affairs’ Office of Justice Services also participated in several sessions.
The TNLC is composed of tribal leaders representing American Indian tribes and Alaska Native villages from regions around the country. The TNLC was created in 2010 and meets periodically to confer with top officials in the department and discuss issues of mutual concern.
Jalil Ibn Ameer Aziz Sentenced for Conspiracy to Provide Material Support and Resources to a Designated Foreign Terrorist Organization and Transmitting a Communication Containing a Threat to InjureRead the Press Release
Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney David J. Freed for the Middle District of Pennsylvania and Special Agent in Charge Michael Harpster of the FBI’s Philadelphia Division announced today that Jalil Ibn Ameer Aziz, 21, a U.S. citizen and resident of Harrisburg, Pennsylvania, was sentenced to 160 months of imprisonment and 12 of years of supervised release by Chief United States District Court Judge Christopher C. Conner for conspiracy to provide material support and resources to a designated foreign terrorist organization and transmitting a communication containing a threat to injure. Chief Judge Conner also ordered Aziz to pay $6,635.79 in restitution to the service members he threatened.
According to court documents, from July 2014 to December 2015, Aziz engaged in a concerted and prolonged effort to support the Islamic State of Iraq and al-Sham (“ISIL” or “ISIS”), by knowingly conspiring to provide material support, including personnel and services, to ISIS. Aziz was steadfast and outspoken in his support for ISIS. Aziz pledged his allegiance to the leader of ISIS and used at least 72 different Twitter accounts to advocate violence against the United States and its citizens, to disseminate ISIS propaganda, and to espouse pro-ISIS views.
On at least three occasions, Aziz used his Twitter accounts and other electronic communication services to assist persons seeking to travel to and fight for ISIL. In one instance, Aziz acted as an intermediary between a person in Turkey and several well-known members of ISIS. Aziz passed location information, including maps and a telephone number, between the person in Turkey and the ISIS member.
Aziz also used one of his Twitter accounts to threaten approximately 100 U.S. service members. He disseminated a “kill list” that contained the names, addresses, photographs and military branches of the service members. A well-known ISIS member compiled the list, which commanded ISIS supporters to “kill the [service members] in their own lands, behead them in their own homes, stab them to death as they walk their street thinking that they are safe.”
A court-authorized search of a tactical/military style backpack located in Aziz’s closet identified five loaded M4-style high-capacity magazines, a modified straight edge knife, a thumb drive, medication, flashlights, a toothbrush, sunflower seeds, a lighter, nail clippers, fingerless gloves, a pocket watch and a black balaclava, which is a type of mask frequently worn by ISIS fighters and supporters.
On December 22, 2015, Aziz was charged in an indictment with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. A superseding indictment was returned on May 18, 2016, which added solicitation to commit a crime of violence and transmitting a communication containing a threat to injure. On January 30, 2017, Aziz pled guilty to conspiracy to provide material support and resources to a designated foreign terrorist organization and transmitting a communication containing a threat to injure.
“Jalil Ibn Ameer Aziz conspired to provide material support to ISIS by aiding individuals in their pursuit of traveling overseas to join the designated foreign terrorist organization and by using social media to propagate ISIS’s threats to injure U.S. service members,” said Acting Assistant Attorney General Boente. “The National Security Division’s highest priority is counterterrorism, and we will remain vigilant in our efforts to hold accountable those who seek to provide material support to foreign terrorist organizations and threaten members of our military.”
United States Attorney David J. Freed said, “We in law enforcement know that the fight against terrorism is not limited to far-away battlefields. This sentence should serves as ample notice that we will cede the security of our community to no one. The outstanding work of the investigators and attorneys in this case has brought to justice an individual who provided real, material support to terrorist groups and who attempted to spread hate and destruction in our community and abroad. We will remain ever vigilant to protect the security of our citizens.”
"Mr. Aziz shared ISIL propaganda via social media, helping the terrorists' twisted worldview spread further, faster," said Michael Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "Spewing violent jihadist beliefs, this young man – an American citizen – called for the murder of U.S. service members, and aided other radicalized individuals seeking to travel and take up arms alongside ISIL fighters. The dangers he posed are clear, and chilling. FBI Philadelphia's Joint Terrorism Task Force will never stop working to detect and disrupt the activities of terrorists and those who assist them."
The case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force (JTTF), which includes the Pentagon Force Protection Agency and the Pennsylvania State Police, with assistance from the Harrisburg Bureau of Police. Assistant United States Attorney Daryl F. Bloom and Trial Attorneys Robert Sander and Adam L. Small of the National Security Division’s Counterterrorism Section prosecuted the case.