District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Eight Members/Associates of Cowboys Gang in South Carolina Sentenced for RICO Conspiracy and Violent Crimes in Aid of RacketeeringRead the Press Release
Eight members and one associate of the Cowboys gang, a violent street gang that originated in “Eastside” area of Walterboro, South Carolina, were sentenced this week in federal court in Charleston, South Carolina.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division made the announcement.
U.S. District Court Judge David C. Norton sentenced Khiry Broughton, aka KBlacka, to 108 months in prison; Clyde Naquan Hampton, aka One Loyal Shooter, to 151 months in prison; Zaquann Ernest Hampton, aka TOB, to 84 months in prison; Matthew Rashaun Jones, aka Boogie Mac, to 151 months in prison; Bryant Jameek Davis, aka Savo, to time served; Christopher Sean Brown, aka Roughish, to 108 in prison; William Lamont Cox, aka Wataz, to time served; and Quintin Fishburne to time served. All were sentenced to three years of supervised release as well.
Khiry Broughton, Clyde Naquan Hampton, Matthew Rashuan Jones, and William Lamont Cox were each convicted of RICO conspiracy. Bryant Jameek Davis, Quintin Fishburne, Zaquann Ernest Hampton and Christopher Sean Brown were each convicted of attempted murder in aid of racketeering
Clyde Naquann Hampton and Zaquann Ernest Hampton are from Summerville, South Carolina. Matthew Rashaun Jones is from Cottageville, South Carolina. Khiry Broughton, Bryant Jameek Davis, Quintin Fishburne, and Christopher Sean Brown are from Walterboro, South Carolina, and William Lamont Cox is from Round O, South Carolina.
According to the respective Plea Agreements, all eight defendants were members/associates of the Cowboys gang, a violent street gang that originated in “Eastside” area of Walterboro, South Carolina. Members of the Cowboys show their allegiance by wearing red, white, and blue clothing, and carrying rags in these colors, including depictions of the American flag. Further, members of the Cowboys greet each other and show their membership in the gang using a set of hand-signs intended to evoke the shape of a “b.” This hand sign also shows an affiliation with the “Bloods” gang. Members of the Cowboys also show allegiance to the gang by having the words “Cowboy(s)” or “GMC” tattooed to some part of their body. The Cowboys gang was also, for a time, aligned with another violent street gang called the “Wildboys,” that originated out of the Green Pond area of Walterboro, South Carolina. In addition to sharing a common interest in posting threats, firearms, large amounts of cash, and what purported to be narcotics on Facebook and YouTube, Cowboys and Wildboys shared common enemies. These shared interests resulted in shootings, aimed at rival gang members, which left innocent by-standers seriously injured.
According to his Plea Agreement, Khiry Broughton was sentenced for his role as leader of the Cowboys. In addition, Broughton and Fishburne were sentenced for their roles in a Nov. 6, 2015 attempted murder. Broughton, along with co-defendants Dashawn Brown and Quintin Fishburne, attended a drag race outside of Walterboro. After bets were placed, Broughton questioned the results of the race and demanded the winnings, which were held by one of the race drivers. Broughton decided to rob the winner of the race and in so doing retrieved a backpack containing firearms from Fishburne’s vehicle. Broughton provided the firearms to members of the Cowboys. After the winner refused to provide the money, the winner and another innocent bystander were shot and severely injured. After the shooting occurred, Fishburne, who transported Broughton and Brown to the race, drove Broughton and Brown from the scene to avoid apprehension by the police.
Clyde Naquan Hampton was sentenced for his role in a July 6, 2010 shooting aimed at individuals Hampton believed disrespected him. After throwing up the “b” sign and shouting allegiance to the Cowboys, Hampton fired several shots toward the victims. Hampton was also sentenced for his role in a July 12, 2010 shooting aimed at a rival gang member. After the shooting occurred, shell casings were recovered from the scene and analyzed. Analysis confirmed that the firearm Hampton used was the same as that used in the July 6, 2010 shooting. Hampton was also sentenced for his role in the May 30, 2013 drive-by shooting aimed at rival gang members. Hampton was the driver of this vehicle while two other members of the Cowboys, Matthew Rashuan Jones and Christopher Sean Brown, fired multiple shots at the residence where they believed rival gang members allegedly lived.
Matthew Rashaun Jones was sentenced for his role in a May 12, 2011 drive-by shooting aimed at an individual he believed was a member of a rival gang. Jones, a passenger in the vehicle, along with Dashawn Trevell Brown, fired multiple shots at the individual. Jones was also sentenced for his role in a May 30, 2013 drive-by shooting aimed at rival gang members. While riding in a vehicle driven by Clyde Naquann Hampton, Jones and Christopher Sean Brown fired multiple shots at the residence.
Bryant Jameek Davis was sentenced for his role in a Sept. 28, 2014 shooting in Walterboro, South Carolina. Davis exchanged words with an individual believed to be a member of a rival gang. After exchanging words with the individual and while possessing a firearm, Bryant fired at least two shots at the victim, striking him in the neck and clavicle resulting in serious bodily injury.
William Lamont Cox was sentenced for his role in the distribution of various amounts of controlled substances, namely crack cocaine, from July 30, 2015 to Oct. 15, 2015. Cox used members of the Cowboys to assist in protecting and selling the narcotics.
Zaquann Ernest Hampton was sentenced for his role in the Oct. 28, 2012 robbery that resulted in a shooting of the victim. Hampton, and other associates of the Cowboys gang, placed an order of marijuana from the victim. When the victim arrived, Hampton and his associates, tried to rob the victim, and in so doing, brandished and discharged a firearm that resulted in serious bodily injury.
Christopher Sean Brown was sentenced for his role in the May 30, 2013 drive-by shooting aimed at members of a rival gang. Brown, and Jones, who were passengers in a vehicle driven by Clyde Naquann Hampton, fired multiple shots in the residence they believed was occupied by members of the rival gang.
As part of the sentence, Khiry Broughton, Clyde Naquann Hampton, Matthew Rashaun Jones, and William Lamont Cox were ordered to serve a term of three years of supervised release and to pay the costs of medical care for the victims who received medical care as a result of the injuries. Zaquann Ernest Hampton, Bryant Jameek Davis, Quintin Fishburne, and Christopher Sean Brown were ordered to serve a term of three years of supervised release and pay the costs of medical care for those victims injured as a result of the crime.
Dashawn Trevell Brown, a member of the Cowboys, who pleaded guilty to RICO conspiracy, is scheduled to be sentenced on Dec. 15.
The case was investigated by the ATF, Charleston, South Carolina, in partnership with the Walterboro Police Department; Colleton County Sheriff’s Office; Charleston County Sheriff’s Office; Dorchester County Sheriff’s Office; Summerville Police Department; Fourteenth Judicial Circuit Solicitor’s Office; First Judicial Circuit Solicitor’s Office; South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section from Washington, D.C. and Special Assistant U.S. Attorney Tameaka A. Legette from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, South Carolina.
Attorney General Sessions and Acting DEA Administrator Patterson Announce New Tools to Address Opioid CrisisRead the Press Release
Continuing to follow President Trump’s strong leadership on combatting the deadly opioid crisis, Attorney General Sessions today announced new resources and stepped up efforts to address the drug and opioid crisis.
Joined by Acting DEA Administrator Robert Patterson, Attorney General Sessions announced the following efforts during a press conference at the Department of Justice: over $12 million in grant funding to assist law enforcement in combating illegal manufacturing and distribution of methamphetamine, heroin, and prescription opioids; the establishment of a new DEA Field Division in Louisville, Kentucky, which will include Kentucky, Tennessee, and West Virginia, a move meant to better align DEA enforcement efforts within the Appalachian mountain region; and a directive to all U.S. Attorneys to designate an Opioid Coordinator to work closely with prosecutors, and with other federal, state, tribal, and local law enforcement to coordinate and optimize federal opioid prosecutions in every district.
“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions. “That’s why, under President Trump’s strong leadership, the Department of Justice has been taking action to make our drug law enforcement efforts more effective. Today we announce three new initiatives to do just that. First, we will invest $12 million in funding for our state and local law enforcement partners to take heroin and methamphetamine off of our streets. Second, we will restructure DEA's Field Divisions for the first time in nearly 20 years. Third, we will require all of our federal prosecutors' offices to designate an Opioid Coordinator who will customize our anti-opioid strategy in every district in America. These steps will make our law enforcement efforts smarter and more effective—and ultimately they will save American lives."
“DEA continually looks for ways to improve operations and interagency cooperation and more efficiently leverage resources,” said Acting DEA Administrator Robert W. Patterson. “By creating a new division in the region, this restructuring places DEA in lockstep with our partners in the area to do just that. This change will produce more effective investigations on heroin, fentanyl, and prescription opioid trafficking, all of which have a significant impact on the region.”
COPS Anti-Heroin Task Force Grants and Anti-Meth Program
The Community Oriented Policing Services (COPS) Office is awarding a total of $7.19 million in FY 2017 funding through the Anti-Heroin Task Force Program (AHTF). AHTF provides two years of funding directly to law enforcement agencies in states with high per capita levels of primary treatment admissions for heroin and other opioids. This funding will support the location or investigation of illicit activities related to the distribution of heroin or the unlawful distribution of prescription opioids.
The COPS Office will also award a total of $5.03 million in FY 2017 funding through the COPS Anti-Methamphetamine Program (CAMP). The state agencies receiving funding today have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures. State agencies will be awarded two years of funding through CAMP to support the investigation of illicit activities related to the manufacture and distribution of methamphetamine.
The complete list of Anti-Heroin Task Force Program (AHTF) award recipients, including funding amounts, can be found here.
The complete list of COPS Anti-Methamphetamine Program (CAMP) award recipients, including funding amounts, can be found here.
Establishment of DEA Louisville Field Division
The DEA will establish the Louisville Field Division – its 22nd division office in the United States – on Jan. 1, 2018. It will include Kentucky, Tennessee, and West Virginia. This action converts the existing Louisville District Office into a field division in an effort to enhance DEA enforcement efforts within the Appalachian mountain region and unify drug trafficking investigations under a single Special Agent in Charge. DEA anticipates that this change will produce more effective investigations on heroin, fentanyl and prescription opioid trafficking, all of which have a significant impact on the region. The division will also better align DEA with the U.S. Attorney’s Office districts in those areas, similar to current ATF and FBI offices, and also to the Appalachia High Intensity Drug Trafficking Areas (HIDTA) Program.
The Louisville Division will be led by Special Agent in Charge D. Christopher Evans, who comes from the Detroit Field Division where he served as Associate Special Agent in Charge.
Designation of Opioid Coordinators
Every U.S. Attorney will designate an Opioid Coordinator by the close of business on Dec. 15, 2017. Each USAO Opioid Coordinator will be responsible for facilitating intake of cases involving prescription opioids, heroin, and fentanyl; convening a task force of federal, state, local, and tribal law enforcement to identify opioid cases for federal prosecution, facilitate interdiction efforts, and tailor their district’s response to the needs of the community it serves; providing legal advice and training to AUSAs regarding the prosecution of opioid offenses; maintaining statistics on the opioid prosecutions in the district; and developing and continually evaluating the effectiveness of the office’s strategy to combat the opioid epidemic.
The Attorney General’s memo to United States Attorneys can be viewed here.
Attorney General Jeff Sessions Appoints U.S. Trustee and Acting U.S. Trustees to Cover Six U.S. Trustee Program RegionsRead the Press Release
WASHINGTON, D.C. – Attorney General Jeff Sessions has appointed one interim U.S. Trustee and five Acting U.S. Trustees to cover six U.S. Trustee Program (USTP or Program) regions, the Executive Office for U.S. Trustees (EOUST) announced today. The effective date of each appointment correlates with the upcoming retirements of Judy A. Robbins, U.S. Trustee for Regions 4 and 7, and Guy G. Gebhardt, Acting U.S. Trustee for Region 21, and the detail of Gail B. Geiger, Acting U.S. Trustee for Region 18, to a leadership position in the EOUST.
Region 4 – District of Columbia, Maryland, South Carolina, Virginia, and West Virginia: John P. Fitzgerald III is appointed as the Acting U.S. Trustee for Region 4 effective Jan. 1, 2018. Mr. Fitzgerald is the Assistant U.S. Trustee in the Boston office of the USTP. Region 4 is headquartered in Columbia, South Carolina, with additional offices in Baltimore and Greenbelt, Maryland; Alexandria, Norfolk, Richmond, and Roanoke, Virginia; and Charleston, West Virginia.
Region 5 – Louisiana and Mississippi: David W. Asbach is appointed as the Acting U.S. Trustee for Region 5 effective Jan. 1, 2018. Mr. Asbach is the Assistant U.S. Trustee in the Milwaukee office of the USTP. Region 5 is headquartered in New Orleans with additional offices in Shreveport, Louisiana, and Jackson, Mississippi.
Region 7 – Southern and Western Districts of Texas: Henry G. Hobbs, Jr., is appointed as the Acting U.S. Trustee for Region 7 effective Jan. 1, 2018. Mr. Hobbs is the Assistant U.S. Trustee in the USTP’s office in Austin, Texas, and has served as the Acting U.S. Trustee for Region 5 since January 2011. Region 7 is headquartered in Houston with additional offices in Austin, Corpus Christi, and San Antonio, Texas.
Region 12 – Iowa, Minnesota, North Dakota, and South Dakota: James L. Snyder is appointed as the Acting U.S. Trustee for Region 12 effective Jan. 7, 2018. Mr. Snyder is the Assistant U.S. Trustee in the Program’s Des Moines, Iowa, office. Region 12 is headquartered in Cedar Rapids, Iowa, with additional offices in Des Moines; Minneapolis, Minnesota; and Sioux Falls, South Dakota.
Region 18 – Alaska, Idaho, Montana, Oregon, and Washington: Gregory M. Garvin is appointed as the Acting U.S. Trustee for Region 18 effective Dec. 23, 2017. Mr. Garvin is the Assistant U.S. Trustee in the USTP’s Denver office. Region 18 is headquartered in Seattle with additional offices in Anchorage, Alaska; Boise, Idaho; Great Falls, Montana; Eugene and Portland, Oregon; and Spokane, Washington.
Region 21 – Florida, Georgia, Puerto Rico, and the U.S. Virgin Islands: Daniel M. McDermott is appointed as the interim U.S. Trustee for Region 21 effective Jan. 7, 2018. Mr. McDermott also will continue as U.S. Trustee for Region 9 (Michigan and Ohio), where he has served since his appointment in July 2008. Region 21 is headquartered in Atlanta with additional offices in Miami, Orlando, Tallahassee, and Tampa, Florida; Macon and Savannah, Georgia; and San Juan, Puerto Rico.
“On behalf of the U.S. Trustee Program, I extend my deepest gratitude to Ms. Robbins and Mr. Gebhardt for their immeasurable contributions to federal service throughout their 34- and 28-year careers in government, respectively,” said USTP Director Cliff White. “I also am extremely appreciative of our dedicated colleagues who have so graciously agreed to take on additional duties. Their wealth of experience and knowledge will allow the Program to move forward seamlessly in carrying out our important mission.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 92 field office locations.
Justice Department Sues to Stop Miami-Dade County Tax Return Preparers Allegedly Engaged in Fabricating Deductions and CreditsRead the Press Release
The United States has asked a federal court in Miami, Florida, to permanently bar Simon Accounting & Tax Services LLC, and three of its preparers, Vilbrun Simon, Saintanise Agenord, and Wilcienne Pierre, from preparing federal income tax returns for others, the Justice Department announced today. According to the government complaint, Simon, his wife, Agenord, and his niece, Pierre, prepare returns that seek fraudulent tax refunds by fabricating business income, claiming false itemized deductions, and claiming various tax credits to which their customers are not entitled.
The government complaint alleges that Simon, Agenord, and Pierre prepare returns that fabricate business income to increase the customers’ Earned Income Tax Credit. The complaint also alleges that Simon and the others inflate education expenses on their customers’ returns to claim education credits that their customers are not entitled to receive. Additionally, the complaint alleges that Simon, Agenord, and Pierre fabricate deductions to reduce the taxable income their customers report and increase their customers’ refunds. Altogether, the government complaint alleges that Simon’s and the others’ activities may have caused the United States to lose millions of dollars in understated taxes and fraudulent refunds.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Sues Springfield, Illinois, for Discrimination Against Persons with DisabilitiesRead the Press Release
The Justice Department today filed a lawsuit alleging that the City of Springfield, Illinois, has discriminated against persons with disabilities in violation of the Fair Housing Act. The lawsuit, filed in the U.S. District Court for the Central District of Illinois, alleges that Springfield’s zoning code treats small group homes for persons with disabilities less favorably than similarly-situated housing for people without disabilities. The department’s complaint further alleges that, even if the zoning code were valid, Springfield violated the Fair Housing Act by failing to grant an exception that would allow a three-person group home for individuals with disabilities to continue operating in a residential neighborhood.
“The Fair Housing Act prohibits cities from applying their zoning laws in a manner that discriminates against persons with disabilities,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We will continue to vigorously enforce the Fair Housing Act’s prohibition on such discrimination.”
This case arose when the City of Springfield attempted to close a home with three residents with intellectual and physical disabilities because the home violated a 600-foot spacing requirement that applies to community residences for persons with disabilities. That spacing requirement does not apply to homes for up to five unrelated persons without disabilities. The small group home allowed two of the residents to move out of large institutions and live in an integrated community setting.
The lawsuit seeks a court order prohibiting Springfield from enforcing the spacing requirement against this home or similarly-situated homes for persons with disabilities elsewhere in the city. The lawsuit also seeks monetary damages to compensate victims, as well as payment of a civil penalty. A related case challenging Springfield’s spacing requirement was filed by the home’s service provider and one resident. The court in that case, A.D. ex rel. Valencia v. City of Springfield, issued a preliminary injunction against Springfield on Aug. 2, 2017. That ruling is now on appeal to the U.S. Court of Appeals for the Seventh Circuit.
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex, and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Joshua J.C. Ulloa Sentenced for Conspiracy to Possess with Intent to Distribute IceRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that defendant JOSHUA J.C. ULLOA, age 40, from Barrigada, Guam, was sentenced in the District Court of Guam to a 110-month term of imprisonment for Conspiracy to Possess with Intent to Distribute Methamphetamine. The Court also ordered an additional 24 months imprisonment for violating terms of supervised release in a separate federal case. The 24-month sentence will be served consecutive to the 110 months for a total of 11 years in prison. The Court also ordered ULLOA to serve three years of supervised release following his terms of imprisonment. Additionally, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On March 13, 2017, defendant ULLOA was charged with Conspiracy to Possess with Intent to Distribute Methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(a)(1). During July 2016, ULLOA received a mail package that had contained approximately 1,300 grams of methamphetamine. ULLOA was confronted by federal agents at his residence and gave the agents the package. A search of the residence revealed other evidence, including $30,920 in U.S. currency. The money was seized as proceeds of drug trafficking activity and administratively forfeited to the United States. ULLOA engaged in this conduct while serving a term of supervised release for a prior federal conviction in Guam. Further investigation revealed that ULLOA conspired with others to distribute drugs. His prosecution was also linked to other co-conspirators operating out of the Guam Department of Corrections prison facility.
The investigation was conducted by the U.S. Postal Service Inspector and the Drug Enforcement Administration. The case was prosecuted by Frederick A. Black and Rosetta San Nicolas, Assistant U.S. Attorneys.
Hong Mei Xu Sentenced for Operating an Unlicensed Money Transmitting BusinessRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Hong Mei Xu was sentenced in the District Court of the Northern Mariana Islands to 12 months and one day in prison for operating an unlicensed money transmitting business, in violation of 18 U.S.C. § 1960(b)(1)(B). The Defendant was indicted by a federal grand jury on August 5, 2016, and pled guilty on December 9, 2016.
Ms. Xu managed an unlicensed money transmitting business on the island of Tinian. The business operated under the pretense of being a jewelry store. Customers would enter the store and purportedly buy jewelry with their UnionPay International credit card. In reality, the customers would not receive any merchandise, only a receipt, which they would redeem for cash, minus Xu’s 5% commission. Customers then used the cash to gamble at the Tinian Dynasty Hotel and Casino. The purchase transactions were transmitted to UnionPay International Bank, allowing the customers to avoid China’s strict capital flight restrictions. During the federal investigation, agents executed a search warrant at the store in an effort to obtain financial transaction records. Agents discovered merchant card transaction slips totaling $501,800.11 for the period of November 22, 2014, through August 3, 2015. Ms. Xu later disclosed to agents that the business was not licensed as a money transmitting business and that she would run customers’ credit cards in exchange for U.S. currency.
Acting U.S. Attorney Anderson stated, “federal law requires certain money services businesses (MSBs) to register with the Financial Crimes Enforcement Network (FinCEN). Registration enables the government to monitor and enforce compliance with financial regulations. These regulations are important to deterring money laundering and terrorist financing, within our homeland and abroad. Our office will continue to pursue criminal prosecutions and civil monetary penalties against those who fail to register as MSBs and choose to operate in the shadows of our financial system. Additional guidance can be found at www.fincen.gov.”
Special Agents from the Internal Revenue Service conducted the investigation. Assistant United States Attorneys Russell Lorfing and James Benedetto prosecuted the case.
Tobacco Companies to Begin Issuing Court-Ordered Statements in Tobacco Racketeering SuitRead the Press Release
Several of America’s major cigarette manufacturers will begin issuing court-ordered “corrective statements” in major daily newspapers and on television beginning Friday, November 24, 2017. The statements will clarify for the public the effects of tobacco use and will appear in full-page print ads in the editions of more than 50 newspapers, including the Wall Street Journal, USA Today, New York Times, and Washington Post over four months. The same statements will also appear in television markets across the country beginning the following week for the next year.
Following a nine-month civil racketeering trial, the U.S. District Court for the District of Columbia ordered the tobacco companies, including Altria, its Philip Morris USA subsidiary, and R.J. Reynolds Tobacco, to issue the corrective statements as part of a permanent injunction in 2006 designed to “prevent and restrain” further deception of the American people regarding tobacco use. Multiple appeals following the 2006 permanent injunction delayed issuance of the statements until now.
In its 2006 permanent injunction, the district court found that “Defendants lied, misrepresented, and deceived the American public,” on a host of topics. These topics included:
- Fraudulently distorting and minimizing the health effects of smoking;
- Falsely denying and minimizing the addictiveness of smoking and nicotine;
- Designing cigarettes to create addiction;
- Fraudulently presenting light/low-tar cigarettes as less dangerous;
- Falsely denying marketing to youth; and
- Falsely denying the hazards of secondhand smoke.
The court concluded that, absent court action, the tobacco companies were “reasonably likely” to continue engaging in this behavior and imposed a permanent injunction to prevent future violations. Among other things, this injunction requires the tobacco companies to issue these “corrective statements” in multiple mediums: newspaper, television, company websites, and package “onserts.” Another placement for the statements, at retail point-of-sale, was set aside on appeal by the D.C. Circuit, and whether to reinstate it remains pending before the district court.
Numerous Justice Department attorneys have played a role in this case over the years. In the most recent phase of the litigation, the United States was represented by Trial Attorneys Daniel K. Crane-Hirsch and John (Josh) Burke of the Justice Department’s Consumer Protection Branch; Linda McMahon of the Commercial Litigation Branch; and Melissa Patterson, Alisa Klein, Mark Stern, and Lewis Yelin of the Civil Appellate Staff.
Six public health organizations – the American Cancer Society, American Heart Association, American Lung Association, Americans for Nonsmokers’ Rights, National African American Tobacco Prevention Network and the Tobacco-Free Kids Action Fund – joined the Department of Justice case as intervenors in 2005.
Jailer Pleads Guilty to Abusing Inmate at DeKalb County JailRead the Press Release
Dwight Hamilton, a former correctional officer at the DeKalb County Jail, pleaded guilty on Monday to abusing a female inmate by tasing her without any legitimate justification. Leonard Dreyer, Mr. Hamilton’s former supervisor at the DeKalb County Jail, previously pleaded guilty to attempting to obstruct the federal investigation into Mr. Hamilton’s use of excessive force by making false statements to an FBI agent.
According to the charges and other information presented in court, Dwight Hamilton worked as a sergeant at the DeKalb County Jail, and on November 1, 2011, he responded to the medical floor of the jail when a female inmate, T.P., asked to speak to a supervisor because her family visitation had been unexpectedly cancelled. Rather than explain the situation, Hamilton tased T.P. until she defecated on herself. Hamilton, who had been trained on proper taser usage, admitted he knew that what he was doing was wrong and continued anyway. As a result of the tasing, Inmate T. P. suffered permanent taser burns to her breast.
“Any correctional officer who violates an individual’s right to due process and protection from unreasonable force will be held accountable under the law,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice will continue to work to ensure that the civil rights of all individuals will be protected.”
“Officers who have sworn to maintain security and protect the inmates inside our county jails have a difficult job but despite challenges, most do their work in a professional manner,” said U.S. Attorney Byung J. “BJay” Pak. “However, Hamilton ignored that oath and unlawfully punished an inmate by inflicting severe pain and causing a permanent injury. Hamilton’s conduct was clearly a violation of the inmate’s constitutional rights that warranted this criminal prosecution.”
“Monday’s guilty plea in federal court will clearly begin the process of holding former Dekalb County Corrections Officer Hamilton responsible for his criminal conduct involving the tasing of a female inmate,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office. “The FBI continues to play a significant role in investigating credible allegations of law enforcement misconduct, to include those occurring within a correctional facility, and presenting them, when appropriate, for federal prosecution as was the case with Mr. Hamilton.”
Dwight Hamilton, 53, of Atlanta, Georgia, will be sentenced by U.S. District Court Judge Timothy C. Batten on February 8, 2018.
This case was investigated by the Atlanta Division of the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Brent Alan Gray of the Northern District of Georgia, and Trial Attorney Christopher Perras of the Civil Rights Division.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Federal Penitentiary Lieutenant Pleads Guilty to Abusing Inmate and Attempting to Cover it UpRead the Press Release
Gregory McLeod, 44, of Atlanta, Georgia, a former correctional officer with the rank of lieutenant at the U. S. Penitentiary in Atlanta, pleaded guilty today to abusing an inmate by punching him in his face without any justification. McLeod also admitted that he intentionally obstructed a federal investigation into the matter by writing a false incident report.
“A correctional officer should never resort to violence or violate an inmate’s constitutional right to protection from unreasonable force, no matter the circumstance,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice will not tolerate any abuse of an individual’s civil rights under the law, or any effort to obstruct justice.”
“Working in a correctional facility is stressful and often dangerous work,” said U.S. Attorney Byung J. “BJay” Pak. “However, McLeod made an unnecessary and unconstitutional assault on an inmate, and then filed a false report to cover it up. An abuse of the power by any law enforcement officer is unacceptable.”
“No correctional officer is above the law,” said James F. Boyersmith, Assistant Special Agent-in-Charge of the Department of Justice (DOJ) Office of the Inspector General’s (OIG) Miami Field Office. “The DOJ OIG takes allegations of civil rights violations and false statements very seriously. We appreciate the diligent efforts of our fellow law enforcement partners that assisted us in investigating this matter.”
“This guilty plea of former U.S. Bureau of Prisons Lieutenant McLeod was triggered by key and credible allegations of inmate abuse by prison staff,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office. “While the FBI would like to remind the public that the vast majority of those working within our nation’s correctional facilities consistently conduct themselves admirably under often harsh conditions, the FBI does have a duty to investigate and present for prosecution those corrections officers or staff members who abuse their authority and positions.”
According to the charging and court documents, McLeod, who worked as a supervisor at the prison, strip-searched an inmate in the lieutenants’ office in front of three other correctional officers. McLeod admitted that after the inmate complained that the strip-search was taking too long, he punched the inmate in his face without justification. McLeod also admitted that after the assault, he wrote an incident report and a separate memorandum about the encounter in which McLeod falsely claimed that the inmate swung a closed fist at him and attempted to assault other officers before the inmate was restrained.
Sentencing for McLeod will be on February 20, 2018, before U.S. District Court Judge Steve C. Jones.
This case was investigated by the Department of Justice Office of the Inspector General and Atlanta Division of the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Brent Alan Gray and Trial Attorney Mary J. Hahn of the Civil Rights Division.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Attorney General Jeff Sessions Directs FBI and ATF to Conduct a Comprehensive Review of the National Instant Criminal Background Check SystemRead the Press Release
Today, Attorney General Jeff Sessions issued a memo to the FBI and ATF directing them to look at several issues as it relates to reporting information to the National Instant Criminal Background Check System. The memo directs the FBI and ATF to take the following steps:
- Work with the Department of Defense to identify and resolve any issues with the military’s reporting of convictions and other information relevant to determining prohibited person status under 18 U.S.C. § 922(g).
- Conduct a review to identify other federal government entities that are not fully and accurately reporting information to NICS. If any such entities are identified, a plan should be developed to ensure full and accurate reporting to NICS going forward to the extent required under current law.
- Conduct a review of the format, structure, and wording of ATF Form 4473 and recommend changes as necessary.
- Prepare a report that addresses: (a) the number of current open investigations for making a false statement on ATF Form 4473; (b) the number of investigations for making a false statement on ATF Form 4473 for the past five years; (c) the prosecution referral and declination numbers for the current year, as well as the past five years for making a false statement on ATF Form 4473; and (d) the priority level assigned to investigations for making a false statement on ATF Form 4473.
- Identify any additional measures that should be taken to prevent firearms from being obtained by prohibited persons, including identifying obstacles to state, local, and tribal entities sharing information with NICS.
“The National Instant Criminal Background Check System is critical for us to be able to keep guns out of the hands of those that are prohibited from owning them,” said Attorney General Jeff Sessions. “The recent shooting in Sutherland Springs, Texas revealed that relevant information may not be getting reported to the NICS – this is alarming and it is unacceptable. Therefore, I am directing the FBI and ATF to do a comprehensive review of the NICS and report back to me the steps we can take to ensure that those who are prohibited from purchasing firearms are prevented from doing so.”
- Work with the Department of Defense to identify and resolve any issues with the military’s reporting of convictions and other information relevant to determining prohibited person status under 18 U.S.C. § 922(g).
Massachusetts Man Charged with Sex Trafficking and KidnappingRead the Press Release
An indictment was unsealed today in the U.S. District Court for the District of Maine charging Rashad Sabree, 37, of Boston, Massachusetts, with two counts of sex trafficking by force, fraud, or coercion, two counts of kidnapping, and one count of interstate transportation for purposes of prostitution, announced Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division and U.S. Attorney Halsey B. Frank of the District of Maine.
According to the indictment, in late 2015 and early 2016, the defendant used force, fraud, and coercion to cause two women to engage in commercial sex acts in Maine before attempting to drive them to Massachusetts against their will.
The District of Maine is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a minimum sentence of 15 years’ imprisonment and a maximum sentence of life, a $250,000 fine, and mandatory restitution.
The case is being investigated by the Federal Bureau of Investigation, U.S Immigration and Customs Enforcement’s Homeland Security Investigations, and the Biddeford Police Department. It is being prosecuted by Assistant U.S. Attorney Julia Lipez and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Denaturalization Sought Against Five Child Sexual Abusers in Florida, Illinois, and TexasRead the Press Release
Today, the U.S. Department of Justice filed denaturalization lawsuits against five individuals who, according to the Department’s complaints, unlawfully procured their U.S. citizenship by concealing sexual abuse of minor victims during the naturalization process. The civil complaints were filed in federal court in the Southern District of Florida, the Northern District of Illinois, the Northern District of Texas (two cases), and the Southern District of Texas.
“Committing fraud in any immigration matter undermines the integrity of our immigration system, and is a betrayal of the American people’s generosity,” said Attorney General Jeff Sessions. “It is especially appalling when it also involves the sexual abuse of children. The Department of Justice has a duty to prosecute these crimes vigorously, particularly so for individuals who commit fraud in the naturalization process. I am confident that justice will be done in these cases, and I want to thank ICE, CBP, USCIS, our Civil Division, and our U.S. Attorneys’ offices for their hard work. This Department will continue to fight to denaturalize immigration fraudsters and to protect the American people from sex offenders.”
The cases were referred to the Department of Justice by the Department of Homeland Security’s U.S. Immigration and Customs Enforcement and U.S. Customs and Border Protection with investigative support from U.S. Citizenship and Immigration Services.
“I commend the DHS personnel working diligently to remove dangerous criminals from our streets,” said Acting Secretary of the Department of Homeland Security Elaine Duke. “Those who unlawfully procured citizenship by concealing crimes – especially sexual abuse of minors – should have their citizenship revoked.”
Under the Immigration and Nationality Act, the citizenship of a naturalized U.S. citizen may be revoked, and his or her certificate of naturalization canceled, if naturalization was illegally procured or procured by concealment of a material fact or by willful misrepresentation.
The five defendants committed crimes of sexual abuse of minor victims prior to naturalizing. As the civil complaints allege, such crimes rendered the defendants ineligible for citizenship from the start. By willfully concealing child sexual abuse crimes, the defendants also independently rendered themselves subject to denaturalization.
A description of each of the five cases and the allegations of the United States follows:
Jorge Luis Alvarado
Jorge Luis Alvarado, 56, a native of Mexico, naturalized on March 9, 2000. Shortly before filing his naturalization application, Alvarado made unlawful sexual contact with a sixteen-year-old child. In March 2007, he pleaded guilty in Texas state court to committing indecency with a child by sexual contact, a second-degree felony. Alvarado was ordered to community supervision and to register as a sex offender. He has been residing in southern Texas. United States of America v. Jorge Luis Alvarado (S.D. Tex.).
Alberto Mario Beleno
Alberto Mario Beleno, 64, a native of Colombia, naturalized on Feb. 26, 2001. Before Beleno naturalized as a U.S. citizen, he committed lewd and lascivious acts on a six-year-old child. In 2001, less than three months after he naturalized, Beleno was arrested and ultimately pleaded guilty/nolo-contendere in Florida state court to committing felony lewd and lascivious exhibition and felony lewd and lascivious molestation on a minor in 1993 and 1994. Beleno was ordered to register as a sex offender for his conduct. His last known residence in the United States is in Miami, Florida. United States of America v. Alberto Mario Beleno (S.D. Fla.).
Eleazar Corral Valenzuela
Eleazar Corral Valenzuela, 49, a native of Mexico, naturalized on June 15, 2000. Prior to applying to naturalize, he sexually abused a minor child. In November 2000, after he had naturalized, Corral pleaded guilty in Illinois state court to aggravated criminal sexual abuse, a Class 2 felony. He was ordered to register as a sex offender. He has been residing in Aurora, Illinois. United States of America v. Eleazar Corral Valenzuela (N.D. Ill.).
Moises Herrera-Gonzalez
Moises Herrera-Gonzalez, 55, a native of Mexico, naturalized on Sept. 25, 1999. On Jan. 1, 1996, before he filed his naturalization application, Herrera-Gonzalez sexually assaulted and injured a six-year-old child. He filed his naturalization application in September 1996, nine months after the sexual assault. On July 8, 2002, after he naturalized, Herrera-Gonzalez pleaded guilty in Texas state court to committing bodily injury to a child, a third-degree felony. He was sentenced to five years in prison. He has been residing in Arlington, Texas. United States of America v. Moises Herrera-Gonzalez (N.D. Tex.).
Emmanuel Olugbenga Omopariola
Emmanuel Olugbenga Omopariola, 60, a native of Nigeria, naturalized on July 1, 2004. Before he filed his naturalization application in May 2003, Omopariola made unlawful sexual contact with a seven-year-old child. In 2015, after he naturalized, Omopariola pleaded guilty in Texas state court to Indecency with a Child – Sexual Contact, a second-degree felony. He was ordered to five years of community supervision and placed on the sex offender registry. He has been residing in Grand Prairie, Texas. United States of America v. Emmanuel Olugbenga Omopariola (N.D. Tex.).
These cases were investigated by ICE, CBP, and USCIS, and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). These cases are being prosecuted by OIL-DCS and its National Security and Affirmative Litigation Unit (NS/A Unit) with support from the U.S. Attorney’s Offices for the Southern District of Florida, Northern District of Illinois, Northern District of Texas, and Southern District of Texas.
The claims made in the complaint are allegations only, and there has been no determination of liability.
Denaturalization Sought Against Five Child Sexual Abusers in Florida, Illinois, and TexasRead the Press Release
WASHINGTON – Today, the U.S. Department of Justice filed denaturalization lawsuits against five individuals who, according to the Department’s complaints, unlawfully procured their U.S. citizenship by concealing sexual abuse of minor victims during the naturalization process. The civil complaints were filed in federal court in the Southern District of Florida, the Northern District of Illinois, the Northern District of Texas (two cases), and the Southern District of Texas.
“Committing fraud in any immigration matter undermines the integrity of our immigration system, and is a betrayal of the American people’s generosity,” said Attorney General Jeff Sessions. “It is especially appalling when it also involves the sexual abuse of children. The Department of Justice has a duty to prosecute these crimes vigorously, particularly so for individuals who commit fraud in the naturalization process. I am confident that justice will be done in these cases, and I want to thank ICE, CBP, USCIS, our Civil Division, and our U.S. Attorneys’ offices for their hard work. This Department will continue to fight to denaturalize immigration fraudsters and to protect the American people from sex offenders.”
The cases were referred to the Department of Justice by the Department of Homeland Security’s U.S. Immigration and Customs Enforcement and U.S. Customs and Border Protection with investigative support from U.S. Citizenship and Immigration Services.
“I commend the DHS personnel working diligently to remove dangerous criminals from our streets,” said Acting Secretary of the Department of Homeland Security Elaine Duke. “Those who unlawfully procured citizenship by concealing crimes – especially sexual abuse of minors – should have their citizenship revoked.”
Under the Immigration and Nationality Act, the citizenship of a naturalized U.S. citizen may be revoked, and his or her certificate of naturalization canceled, if naturalization was illegally procured or procured by concealment of a material fact or by willful misrepresentation.
The five defendants committed crimes of sexual abuse of minor victims prior to naturalizing. As the civil complaints allege, such crimes rendered the defendants ineligible for citizenship from the start. By willfully concealing child sexual abuse crimes, the defendants also independently rendered themselves subject to denaturalization.
A description of each of the five cases and the allegations of the United States follows:
Jorge Luis Alvarado
Jorge Luis Alvarado, 56, a native of Mexico, naturalized on March 9, 2000. Shortly before filing his naturalization application, Alvarado made unlawful sexual contact with a sixteen-year-old child. In March 2007, he pleaded guilty in Texas state court to committing indecency with a child by sexual contact, a second-degree felony. Alvarado was ordered to community supervision and to register as a sex offender. He has been residing in southern Texas. United States of America v. Jorge Luis Alvarado (S.D. Tex.).
Alberto Mario Beleno
Alberto Mario Beleno, 64, a native of Colombia, naturalized on Feb. 26, 2001. Before Beleno naturalized as a U.S. citizen, he committed lewd and lascivious acts on a six-year-old child. In 2001, less than three months after he naturalized, Beleno was arrested and ultimately pleaded guilty/nolo-contendere in Florida state court to committing felony lewd and lascivious exhibition and felony lewd and lascivious molestation on a minor in 1993 and 1994. Beleno was ordered to register as a sex offender for his conduct. His last known residence in the United States is in Miami, Florida. United States of America v. Alberto Mario Beleno (S.D. Fla.).
Eleazar Corral Valenzuela
Eleazar Corral Valenzuela, 49, a native of Mexico, naturalized on June 15, 2000. Prior to applying to naturalize, he sexually abused a minor child. In November 2000, after he had naturalized, Corral pleaded guilty in Illinois state court to aggravated criminal sexual abuse, a Class 2 felony. He was ordered to register as a sex offender. He has been residing in Aurora, Illinois. United States of America v. Eleazar Corral Valenzuela (N.D. Ill.).
Moises Herrera-Gonzalez
Moises Herrera-Gonzalez, 55, a native of Mexico, naturalized on Sept. 25, 1999. On Jan. 1, 1996, before he filed his naturalization application, Herrera-Gonzalez sexually assaulted and injured a six-year-old child. He filed his naturalization application in September 1996, nine months after the sexual assault. On July 8, 2002, after he naturalized, Herrera-Gonzalez pleaded guilty in Texas state court to committing bodily injury to a child, a third-degree felony. He was sentenced to five years in prison. He has been residing in Arlington, Texas. United States of America v. Moises Herrera-Gonzalez (N.D. Tex.).
Emmanuel Olugbenga Omopariola
Emmanuel Olugbenga Omopariola, 60, a native of Nigeria, naturalized on July 1, 2004. Before he filed his naturalization application in May 2003, Omopariola made unlawful sexual contact with a seven-year-old child. In 2015, after he naturalized, Omopariola pleaded guilty in Texas state court to Indecency with a Child – Sexual Contact, a second-degree felony. He was ordered to five years of community supervision and placed on the sex offender registry. He has been residing in Grand Prairie, Texas. United States of America v. Emmanuel Olugbenga Omopariola (N.D. Tex.).
These cases were investigated by ICE, CBP, and USCIS, and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). These cases are being prosecuted by OIL-DCS and its National Security and Affirmative Litigation Unit (NS/A Unit) with support from the U.S. Attorney’s Offices for the Southern District of Florida, Northern District of Illinois, Northern District of Texas, and Southern District of Texas.
The claims made in the complaint are allegations only, and there has been no determination of liability.
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Boynton Beach Officers Convicted of Using Excessive Force Against Arrestee and Obstruction of JusticeRead the Press Release
A federal jury on Friday convicted Boynton Beach Police Sergeant Philip Antico for obstruction of justice during a federal investigation into the excessive use of force by officers after an August 2014 traffic stop, announced Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division and Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida. Last week a federal jury convicted Officer Michael Brown of using excessive force and using a firearm during a crime of violence for repeatedly striking an arrestee multiple times while holding his firearm after that traffic stop.
Evidence presented at both trials established that after Brown used excessive force, he wrote a report omitting that he had kicked the arrestee and struck the arrestee while holding a gun in his hand. At trial, the government presented evidence that Brown’s report changed significantly over the course of a week. In February 2015, after the Federal Bureau of Investigation began a criminal investigation into the officers’ use of force, Antico, Brown’s supervisor, misled a federal agent who was conducting the investigation. Specifically, Antico falsely claimed that Brown’s report of the arrest and his use of force never changed, when in fact Antico approved the report knowing that Brown had made material changes to his report about his use of force after a video recording of the arrest came to light.
"Police officers must abide by the laws they enforce and protect the constitutional rights of all persons,” said Acting Assistant Attorney General Gore. “The department will continue to vigorously enforce our nation’s laws that ensure the civil rights of all persons are protected.”
“The U.S. Attorney’s Office, the Department of Justice and the FBI stand committed to holding those who betray the public trust accountable for their actions, while supporting the men and women who proudly uphold their duties to serve and protect the community,” said Acting U.S. Attorney Greenberg.
Brown faces a maximum penalty of up to 10 years imprisonment for the civil rights violation and 5 years imprisonment for his use of a firearm in the commission of that crime. Antico faces a maximum penalty of up to 20 years imprisonment. Sentencing will be set at a later date before U.S. District Judge Robin L. Rosenberg of the Southern District of Florida.
The case was investigated by the West Palm Beach Resident Agency of the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Susan Osborne of the Southern District of Florida and Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice.
Officials from the U.S., Canada and Mexico Participate in 2017 Trilateral Meeting in Washington D.C. to Discuss Antitrust EnforcementRead the Press Release
Antitrust agency heads from the United States, Canada and Mexico meet today at the Department of Justice in Washington, D.C., to discuss their ongoing work to ensure fair and effective antitrust enforcement and increased cooperation among the nations.
The meeting includes Assistant Attorney General Makan Delrahim of the U.S. Department of Justice’s Antitrust Division, Acting Chairman Maureen Ohlhausen of the U.S. Federal Trade Commission, Canadian Commissioner of Competition John Pecman, and President Alejandra Palacios of the Mexican Federal Economic Competition Commission.
The discussions will cover a wide range of topics including developments and priorities, antitrust and the digital economy, and future opportunities for cooperation and convergence on sound antitrust principles.
“Today we welcome our close partners in antitrust enforcement from Canada and Mexico. Close cooperation and convergence around sound economic principles with our international partners is a key priority for the Antitrust Division,” said Assistant Attorney General Makan Delrahim. “With increasingly interconnected markets, our working relationships with Mexico and Canada are strengthened through meetings like this, and further our efforts to effectively work together to block price fixing cartels that harm consumers, review cross-border transactions and prepare ourselves to tackle the policy challenges of tomorrow.”
“Maintaining and strengthening the already close bonds with our nearest partners is a key international priority,” said Federal Trade Commission Acting Chairman Maureen K. Ohlhausen. “We have much in common with Canada's Competition Bureau and Mexico's COFECE, including reviewing mergers with cross-border effects and sharing approaches to competition advocacy. By working together to promote good competition policy globally, we benefit consumers in all of our countries.”
The 1995 antitrust cooperation agreement between the United States and Canada, the 1999 agreement between the United States and Mexico and the 2001 agreement between Canada and Mexico laid the foundation for these meetings. The agreements commit the antirust agencies to coordinate and cooperate with each other in an effort to ensure the most consistent and effective antitrust enforcement.
Justice Department Challenges AT&T/DirecTV’s Acquisition of Time WarnerRead the Press Release
The United States Department of Justice today filed a civil antitrust lawsuit to block AT&T/DirecTV’s proposed acquisition of Time Warner Inc. The $108 billion acquisition would substantially lessen competition, resulting in higher prices and less innovation for millions of Americans.
The combination of AT&T/DirecTV’s vast video distribution infrastructure and Time Warner’s popular television programming would be one of the largest mergers in American history. Time Warner’s network offerings include TBS, TNT, CNN, Cartoon Network, HBO and Cinemax, and its programming includes Game of Thrones, NCAA’s March Madness, and substantial numbers of MLB and NBA regular season and playoff games.
According to the complaint, which was filed in the United States District Court for the District of Columbia, the combined company would use its control over Time Warner’s valuable and highly popular networks to hinder its rivals by forcing them to pay hundreds of millions of dollars more per year for the right to distribute those networks. The combined company would also use its increased power to slow the industry’s transition to new and exciting video distribution models that provide greater choice for consumers, resulting in fewer innovative offerings and higher bills for American families.
As AT&T itself has expressly acknowledged, distributors with control over popular programming “have the incentive and ability to use . . . that control as a weapon to hinder competition.” And, as DirecTV itself has explained, such vertically integrated programmers “can much more credibly threaten to withhold programming from rival [distributors]” and can “use such threats to demand higher prices and more favorable terms.” This merger would create just such a vertically integrated programmer and cause precisely such harms to competition.
“This merger would greatly harm American consumers. It would mean higher monthly television bills and fewer of the new, emerging innovative options that consumers are beginning to enjoy,” said Assistant Attorney General Makan Delrahim of the Department’s Antitrust Division. “AT&T/DirecTV’s combination with Time Warner is unlawful, and absent an adequate remedy that would fully prevent the harms this merger would cause, the only appropriate action for the Department of Justice is to seek an injunction from a federal judge blocking the entire transaction.”
“The merger would also enable the merged company to impede disruptive competition from online video distributors, competition that has allowed consumers greater choices at cheaper prices,” Delrahim further explained. As noted in the complaint, AT&T/DirecTV describes the traditional, big bundle pay-TV model as a “cash cow” and “the golden goose.” If permitted to merge, AT&T/DirecTV/Time Warner would have the incentive and ability to charge more for Time Warner’s popular networks and take other actions to discourage future competitors from entering the marketplace altogether. For example, the merged firm would likely use its control of Time Warner’s programming, which is important for emerging online video distributors, to hinder those innovative distributors. Indeed, a senior Time Warner executive has stated that they have leverage over an online video distributor, whose offering would be “[expletive] without Turner.” That leverage would only increase if the merger were allowed to proceed.
AT&T Inc. is a Delaware corporation headquartered in Dallas, Texas. In 2016, the company posted revenues of more than $163 billion dollars, making it the largest telecommunications company in the world. AT&T is also the country’s largest Multichannel Video Programming Distributor (MVPD), with more than 25 million subscribers. It has three pay-TV offerings: (1) DirecTV, a satellite-based product with almost 21 million subscribers that it acquired through a merger in 2015; (2) U-Verse, a product which uses the local AT&T fiber optic and copper network and has almost 4 million subscribers; and (3) DirecTV Now, its new online video product with almost 800,000 subscribers. It descends from the AT&T that was established in the nineteenth century and which maintained a monopoly in the provision of local telephone services until 1982, when it agreed to divest the portions of its business relating to local telephone services to settle an antitrust lawsuit filed by the Department of Justice. In 2011, AT&T attempted to purchase T-Mobile, but abandoned the transaction after the Department of Justice filed suit alleging that the merger violated the antitrust laws.
Time Warner, Inc. is a Delaware corporation headquartered in New York, New York. In 2016, its posted revenue was $29.3 billion. As of 2016, according to Time Warner, its most popular networks reach over 90 million households—of the nearly 100 million households that subscribe to traditional subscription television.
Attorney General Sessions Announces $98 Million to Hire Community Policing OfficersRead the Press Release
WASHINGTON — Attorney General Jeff Sessions today announced $98,495,397 in grant funding through the Department of Justice’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The Attorney General announced funding awards to 179 law enforcement agencies across the nation, which allows those agencies to hire 802 additional full-time law enforcement officers.
“Cities and states that cooperate with federal law enforcement make all of us safer by helping remove dangerous criminals from our communities,” said Attorney General Jeff Sessions. “Today, the Justice Department announced that 80 percent of this year’s COPS Hiring Program grantees have agreed to cooperate with federal immigration authorities in their detention facilities. I applaud their commitment to the rule of law and to ending violent crime, including violent crime stemming from illegal immigration. I continue to encourage every jurisdiction in America to collaborate with federal law enforcement and help us make this country safer.”
CHP provides grant funding directly to state, local, and tribal law enforcement agencies to support hiring additional law enforcement officers for three years to address specific crime problems through community policing strategies.
In September, the Justice Department announced additional priority consideration criteria for FY2017 COPS Office grants. Applicants were notified that their application would receive additional points in the application scoring process by certifying their willingness to cooperate with federal immigration authorities within their detention facilities. Cooperation may include providing access to detention facilities for an interview of aliens in the jurisdiction’s custody and providing advance notice of an alien’s release from custody upon request. Eighty percent of the awarded agencies received additional points based on their certifications of willingness to cooperate with federal immigration authorities.
The complete list of award recipients can be found here.
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.Yang Zou Sentenced to 97 Months in Ice CaseRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that defendant YANG ZOU, age 38, from Susupe, Saipan, was sentenced in District Court to a 97-month term of imprisonment for Possession with Intent to Distribute Methamphetamine. The Court also ordered ZOU to serve four years of supervised release following his term of imprisonment. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On April 15, 2016, ZOU was approached by enforcement agents with the Commonwealth Casino Commission at the Best Sunshine Live Casino in Saipan. Agents wanted to question him about his chip activity. ZOU, however, immediately asked to use the restroom and, once inside a stall, placed a cigarette box containing methamphetamine into a wastebasket. The drugs were discovered by a Best Sunshine bathroom attendant soon afterwards and eventually turned over to the Drug Enforcement Administration. Subsequent testing showed the box contained 38.6 grams of methamphetamine with a 97 percent purity level.
On December 2, 2016, ZOU was charged by Indictment with Possession with Intent to Distribute a Controlled Substance (Methamphetamine), in violation of 21 U.S.C. § 841(a)(1). A jury found ZOU guilty on April 7, 2017, after a one-day trial.
The investigation was conducted by the Drug Enforcement Administration, with the assistance and cooperation of the Commonwealth Casino Commission. The case was prosecuted by Garth Backe, Assistant United States Attorney for the District of the NMI.
Attorney General Jeff Sessions Ends the Department’s Practice of Regulation by GuidanceRead the Press Release
Today, in an action to further uphold the rule of law in the executive branch, Attorney General Jeff Sessions issued a memo prohibiting the Department of Justice from issuing guidance documents that have the effect of adopting new regulatory requirements or amending the law. The memo prevents the Department of Justice from evading required rulemaking processes by using guidance memos to create de facto regulations.
In the past, the Department of Justice and other agencies have blurred the distinction between regulations and guidance documents. Under the Attorney General’s memo, the Department may no longer issue guidance documents that purport to create rights or obligations binding on persons or entities outside the Executive Branch.
The Attorney General’s Regulatory Reform Task Force, led by Associate Attorney General Brand, will conduct a review of existing Department documents and will recommend candidates for repeal or modification in the light of this memo’s principles.
“Guidance documents can be used to explain existing law,” Associate Attorney General Brand said. “But they should not be used to change the law or to impose new standards to determine compliance with the law. The notice-and-comment process that is ordinarily required for rulemaking can be cumbersome and slow, but it has the benefit of availing agencies of more complete information about a proposed rule’s effects than the agency could ascertain on its own. This Department of Justice will not use guidance documents to circumvent the rulemaking process, and we will proactively work to rescind existing guidance documents that go too far.”
View the memo here.
Justice Department Settles Immigration-Related Discrimination Claim Against Pasco, Washington, Vegetable Processing PlantRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with Washington Potato Company, which operates the Freeze Pack vegetable processing plant located in Pasco, Washington. The agreement resolves the department’s investigation into whether Washington Potato discriminated against work-authorized immigrants when verifying their employment authorization, in violation of the Immigration and Nationality Act (INA).
The department’s investigation revealed that Washington Potato routinely requested that work-authorized non-U.S. citizens present specific documents to confirm their citizenship status, such as Permanent Resident Cards or Employment Authorization Documents, while verifying their authorization to work at the Freeze Pack plant, but did not subject U.S. citizens to such requests. The anti-discrimination provision of the INA prohibits employers from subjecting employees to different or unnecessary documentary demands based on employees’ citizenship, immigration status, or national origin.
Under the settlement, Washington Potato will pay a civil penalty of $100,000 to the United States, train its staff, post notices informing workers about their rights under the INA’s antidiscrimination provision, and be subject to departmental monitoring and reporting requirements. An earlier settlement between the department and Washington Potato Company in May 2017 resolved litigation concerning similar discriminatory conduct by Washington Potato in its management of another facility located in Pasco, Washington.
“Employers must ensure that they do not impose unnecessary and unlawful barriers to employment based on citizenship status,” said Acting Assistant Attorney General John M. Gore of the Civil Rights Division. “We look forward to working with Washington Potato Company to fulfill the terms of this agreement and ensure compliance with the law at all the facilities it operates.”
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship/immigration status or national origin, or discrimination based on their citizenship/immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
INTERPOL Washington Attends 2017 IPR Center SymposiumRead the Press Release
On November 15, 2017, INTERPOL Washington—the U.S. National Central Bureau--staff members participated in the 2017 Intellectual Property Rights (IPR) Center Symposium, “Solving the E-Commerce Puzzle.” Held at the National IPR Coordination Center in Arlington, Virginia, the symposium brought together over 150 business, industry, government and law enforcement leaders to explore the challenges in combatting e-commerce crime.
22 MS-13 Members and Associates Charged Federally in ICE’s MS-13 Targeted ‘Operation Raging Bull’ Which Netted a Total of 267 ArrestsRead the Press Release
U.S. Department of Justice and U.S. Department of Homeland Security (DHS) officials today announced the results of stepped up efforts by U.S. Immigration and Customs Enforcement (ICE) and the department to target and dismantle MS-13 – culminating in the arrest of 267 in the United States and overseas.
“Operation Raging Bull” was led by ICE’s Homeland Security Investigations (HSI) with support from federal, state, local and international law enforcement partners, and was conducted in support of the Department of Justice’s renewed prioritization of the violent transnational gang.
“With more than 10,000 members across 40 states, MS-13 is one of the most dangerous criminal organizations in the United States today,” said Attorney General Jeff Sessions. “President Trump has ordered the Department of Justice to reduce crime and take down transnational criminal organizations, and we will be relentless in our pursuit of these objectives. That’s why I have ordered our drug trafficking task forces to use every law available to arrest, prosecute, convict, and defund MS-13. And we are getting results. So far this year, we have secured convictions against more than 1,200 gang members and worked with our partners in Central America to arrest and charge some 4,000 MS-13 members. I want to thank the Department of Homeland Security, our federal law enforcement agents and prosecutors from the U.S. Attorneys’ Offices and the Criminal Division’s Organized Crime and Gang Section as well as Treasury, BOP, DOJ’s OCDETF task force members, and all of our state and local law enforcement partners for their hard work. These 267 arrests are the next step toward making this country safer by taking MS-13 off of our streets for good.”
“MS-13 has long been a priority for ICE. However we are now combating the gang with renewed focus and an unprecedented level of cooperation among DHS’s components and our domestic and international partners,” said Thomas Homan, ICE Deputy Director and Senior Official Performing the Duties of the Director. “ICE has the ability to pursue complex criminal cases using our statutory authorities and to prevent crime by using our administrative arrest authorities to remove gang members from the country. We will not rest until every member, associate, and leader of MS-13 has been held accountable for their crimes, and those in this country illegally have been removed.”
The operation was conducted in two phases, targeting dangerous gang members and their global financial networks. The first phase of the operation which was announced previously, netted 53 arrests in El Salvador at the conclusion of an 18-month investigation in September. The second phase was conducted across the United States from Oct. 8 to Nov. 11, and concluded with 214 MS-13 arrests nationwide.
HSI received significant operational support, including intelligence sharing and collaboration, from ICE’s Enforcement and Removal Operations (ERO), U.S. Customs and Border Protection (CBP), U.S. Border Patrol, U.S. Citizenship and Immigration Services (USCIS), the U.S. Department of Treasury, U.S. Department of Justice’s Bureau of Prisons (BOP), as well as state, local, federal, and international law enforcement partners. The Organized Crime and Gang Section of the Justice Department’s Criminal Division, with funding from the Organized Crime Drug Enforcement Task Forces, along with the U.S. Attorneys’ Offices in the Districts of Arizona, Maryland, Massachusetts, Northern District of California, Southern District of Iowa and Southern District of Texas, and are prosecuting the cases.
"Securing the homeland is a critical piece of the USCIS mission,” said USCIS Director L. Francis Cissna. “We are committed to supporting and providing intelligence to our law enforcement colleagues on public safety initiatives like Operation Raging Bull. We will bring all of our agency’s resources to bear in helping protect the American public from violent crime, and in the pursuit of those who seek to endanger the security of our nation.”
"This joint effort is not new. It is something we all do as law enforcement,” said Border Patrol Deputy Chief Scott Luck. “I look forward to continue working with my partners here at Headquarters as well as the field to address not just this threat but all threats.”
“The Bureau of Prisons is proud to have supported our local, state, and federal law enforcement partners in this successful effort to enhance public safety,” said Assistant Director Frank Lara for the Federal Bureau of Prisons Correctional Programs. “The Bureau of Prisons will continue to work collaboratively to combat the threat violent gangs pose inside prisons and in the community.”
Of the total 214 arrests made in the United States, 93 were arrested on federal and/or state criminal charges including murder, aggravated robbery, Racketeering Influenced Corrupt Organization (RICO) offenses, Violent Crime in Aid of Racketeering (VICAR) offenses, narcotics trafficking, narcotics possession, firearms offenses, domestic violence, assault, forgery, DUI and illegal entry/reentry. The remaining 121 were arrested on administrative immigration violations.
Sixteen of the 214 arrested were U.S. citizens and 198 were foreign nationals, of which only five had legal status to be in the United States. Foreign nationals arrested were from El Salvador (135), Honduras (29), Mexico (17), Guatemala (12), Ecuador (4) and Costa Rica (1).
Sixty-four individuals had illegally crossed the border as unaccompanied alien children; most are now adults.
Examples of the federal prosecutions during this operation include:- In Baltimore, Maryland, the arrest and indictment of four MS-13 members on charges that include violent crimes in aid of racketeering and conspiracy to commit murder in aid of racketeering;
- In Greenbelt, Maryland, the arrest and indictment of eight MS-13 members on charges that include conspiracy to participate in a racketeering enterprise, conspiracy to distribute and possession with intent to distribute controlled substances and conspiracy to interfere with interstate commerce by extortion; and
- MS-13 members and associates were arrested in East Boston and Chelsea, Massachusetts; Falfurrias, Hidalgo and Laredo, Texas; Nogales, Tucson and Yuma, Arizona; Council Bluffs, Iowa; Annapolis, Baltimore, Clinton, Beltsville, Upper Marlboro, Centreville and Jessup, Maryland; and San Jose, California and charged with various federal offenses including illegal alien in possession of a firearm and illegal re-entry after deportation.
Following this operation, ICE has added six MS-13 fugitives to its list of “most wanted” individuals, including one fugitive wanted for homicide in Montgomery County, Texas, and five others wanted for their involvement in the homicide and attempted homicides of El Salvadoran police officers. All are suspected of being somewhere in the U.S.
Individuals are confirmed as gang members if they admit membership in a gang; have been convicted of violating Title 18 USC 521 or any other federal or state law criminalizing or imposing civil consequences for gang-related activity; or if they meet certain other criteria such as having tattoos identifying a specific gang or being identified as a gang member by a reliable source.
Gang associates are individuals who exhibit gang member criteria but who are not formally initiated into the gang. Law enforcement officers encountering these individuals will determine whether indications of gang association are present by referring to the gang membership criteria.Wildboys Gang Member Sentenced to Prison for Violent Crime in Aid of Racketeering and Related Firearm OffenseRead the Press Release
A member of the Wildboys gang was sentenced today to 20 years in prison in federal court in Charleston, South Carolina, after being found guilty by a federal jury for his role in the attempted murder of a rival gang member.
The announcement was made by Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon, Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division.
Devin Brown aka “Deno Badazz,” 23, of Green Pond, South Carolina, was sentenced to 240 months in prison, including a 10 year mandatory minimum consecutive sentence by U.S. District Court Judge Richard M. Gergel, for use of a firearm during a crime of violence. In addition, Brown was ordered to serve a term of five years of supervised release, and to pay the cost of the victim’s medical care.
According to evidence presented at trial, Brown was a member of the Wildboys, a violent street gang from the Green Pond area of Walterboro, South Carolina. At trial, prosecutors presented evidence that showed that beginning as early as 2012, Brown and other Wildboys gang members engaged in racketeering activity, including the April 7, 2015, attempted murder of a rival gang member in a drive-by shooting involving assault-type firearms. An innocent bystander inside the home was shot and injured, the evidence showed.
Four individuals have previously pleaded guilty to their involvement in the Wildboys gang. In June 2017, U.S. District Judge Richard M. Gergel of the District of South Carolina sentenced Wildboys members and associates Kelvin Mitchell, Damien Robinson, and Brian Manigo for their roles in gang-related racketeering activities. In August 2017, Wildboys member Joshua Manigault, aka “J-Rizzle,” was sentenced for his role in gang-related activities.
This case was investigated by the ATF Charleston, South Carolina Office, in partnership with the Walterboro Police Department; Colleton County Sheriff’s Office; Charleston County Sheriff’s Office; Dorchester County Sheriff’s Office; Summerville Police Department; Fourteenth Judicial Circuit Solicitor’s Office; First Judicial Circuit Solicitor’s Office; South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Special Assistant U.S. Attorney Tameaka A. Legette from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, South Carolina.
Justice Department Sends Letters to 29 Jurisdictions Regarding Their Compliance with 8 U.S.C. 1373Read the Press Release
The Department of Justice today sent the attached letters to 29 jurisdictions that may have laws, policies, or practices that violate 8 U.S.C. 1373, a federal statute that promotes information sharing related to immigration enforcement.
“Jurisdictions that adopt so-called ‘sanctuary policies’ also adopt the view that the protection of criminal aliens is more important than the protection of law-abiding citizens and of the rule of law,” said Attorney General Jeff Sessions. “I urge all jurisdictions found to be potentially out of compliance in this preliminary review to reconsider their policies that undermine the safety of their residents. We urge jurisdictions to not only comply with Section 1373, but also to establish sensible and effective partnerships to properly process criminal aliens.”
The following jurisdictions have preliminarily been found to have laws, policies, or practices that may violate 8 U.S.C. 1373:
- Albany, New York;
- Berkeley, California;
- Bernalillo County, New Mexico;
- Burlington, Vermont;
- Contra Costa County, California;
- City and County of Denver, Colorado;
- Fremont, California;
- Jackson, Mississippi;
- King County, Washington;
- Lawrence, Massachusetts;
- Los Angeles, California;
- Louisville Metro, Kentucky;
- Middlesex, New Jersey;
- Monterey County, California;
- Multnomah County, Oregon;
- Newark, New Jersey;
- Riverside County, California;
- Sacramento County, California;
- City and County of San Francisco, California;
- Santa Ana, California;
- Santa Clara County, California;
- Seattle, Washington;
- Sonoma County, California;
- Washington, District of Columbia;
- Watsonville, California;
- West Palm Beach, Florida;
- State of Illinois;
- State of Oregon; and
- State of Vermont.
The letters remind the recipient jurisdictions that, as a condition for receiving certain FY2016 funding from the Department of Justice, each of these jurisdictions agreed to comply with Section 1373.
The Department of Justice periodically reviews the laws, policies, or practices of jurisdictions that previously certified compliance with Section 1373 as a condition of their FY2016 Byrne JAG awards.
In addition to raising concerns about these jurisdictions’ Section 1373 compliance during FY2016, the Justice Department asked jurisdictions to determine that they will comply with Section 1373 should they receive an FY2017 Byrne JAG award.
Jurisdictions that were found to have possible violations of 8 U.S.C. 1373 will have until December 8, 2017 to demonstrate that the interpretation and application of their laws, policies, or practices comply with the statute.
Justice Department Files Disability Discrimination Lawsuit Against the Housing Authority of the City of BridgeportRead the Press Release
The U.S. Department of Justice today filed a lawsuit against the Housing Authority of the City of Bridgeport (HACB), doing business as Park City Communities. The lawsuit, filed in the U.S. District Court for the District of Connecticut, alleges that HACB discriminated against persons with disabilities in violation of Section 504 of the Rehabilitation Act, Title II of the Americans with Disabilities Act, and the Fair Housing Act.
HACB owns and manages more than 2,600 units of public housing and administers more than 2,800 vouchers under the U.S. Department of Housing and Urban Development’s (HUD’s) Section 8 Housing Choice Voucher program. The lawsuit arose from a compliance review initiated by HUD. After issuing a determination of noncompliance and attempting resolution, HUD referred the case to the Justice Department.
The complaint alleges that HACB failed to properly process, decide, and fulfill requests for reasonable accommodations for tenants with disabilities over at least two years. Federal law requires HACB to provide reasonable accommodations, such as physical modifications to public housing units, changes to program rules, or transfers to appropriate housing, when requested to meet a tenant or applicant’s disability-related needs. The complaint also alleges that HACB failed to provide a sufficient number of public housing units that are accessible to tenants with mobility, vision, or hearing-related disabilities.
“Tenants with disabilities deserve the same opportunity to use and enjoy their homes as everyone else,” said Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division. “This lawsuit seeks to ensure that HACB provides reasonable accommodations and accessible housing as required by federal law.”
“The complaint alleges that HACB ignored requests for reasonable accommodation from tenants with disabilities, failed to adequately communicate with tenants with disabilities, and failed to provide a sufficient number of accessible housing units,” said U.S. Attorney John H. Durham. “The government filed this complaint after multiple unsuccessful attempts to resolve this matter with HACB. Individuals with disabilities deserve public housing administrators that make life easier for them, not more difficult.”
The lawsuit seeks monetary damages to compensate victims, a court order requiring HACB to remedy past and prevent further discrimination, and a civil penalty. The case is being jointly handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the District of Connecticut. The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Individuals who may have been victims of discrimination by HACB or who have information relevant to this case are encouraged to contact the Civil Rights Division at 1-800-896-7743, mailbox number 992, or by email at [email protected]. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt.
Former Procurement Officer at Federally Funded Nuclear Research and Development Facility Indicted on Charges of Wire Fraud, Major Fraud and Money LaunderingRead the Press Release
A federal grand jury sitting in the District of New Mexico returned an 11-count indictment against a former procurement officer employed at Sandia National Laboratories (SNL), a nuclear research and development facility of the U.S. Department of Energy (DOE), for orchestrating a scheme to obtain a $2.3 million contract through fraudulent means. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement.
Carla Sena, 55, of Albuquerque, New Mexico was charged with three counts of wire fraud, one count of major fraud against the United States and seven counts of money laundering.
According to the indictment, SNL was managed and operated by Sandia Corporation (“Sandia”) during the relevant time period. In late 2010, Sena was assigned by Sandia to manage the bidding process for the award of a contract for moving services at SNL. In anticipation thereof, Sena created New Mexico Express Movers LLC (“Movers LLC”), prepared a bid on Movers LLC’s behalf, and submitted the bid to Sandia under someone else’s name to conceal her involvement. Sena made several material and fraudulent misrepresentations in Movers LLC’s bid that would have resulted in disqualification, but she used her position at SNL to ensure that these misrepresentations went undetected. Sena also used her position to access other bidders’ documents and information that she in turn leveraged to ensure award of the contract to Movers LLC. As a direct result of Sena’s scheme to defraud, Movers LLC received approximately $2.3 million in DOE funds. The indictment further alleges that, between December 2011 and April 2015, Sena transferred via negotiated checks at least $643,000 of these fraudulently obtained proceeds to legitimate businesses owned by her father with the intent to conceal her subsequent use of the proceeds for personal gain.
The indictment is the result of an ongoing investigation by the DOE Office of Inspector General and is being prosecuted by Trial Attorneys Victor R. Salgado and Rebecca Moses of the Criminal Division’s Public Integrity Section.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent unless proven guilty.
Justice Department Obtains $5.4 Million in Additional Relief to Compensate Servicemembers for Unlawful Repossessions by Wells Fargo Dealer ServicesRead the Press Release
The Justice Department announced today that it has obtained an additional $5.4 million for servicemembers whose vehicles were unlawfully repossessed by Wells Fargo Bank, N.A. in violation of the Servicemembers Civil Relief Act (SCRA). The bank, which does business under the name Wells Fargo Dealer Services, has agreed to pay this money to approximately 450 servicemembers under a 2016 settlement that resolved the department’s SCRA lawsuit against the company. This additional amount brings the total compensation under the settlement to more than $10.1 million and the total number of servicemembers eligible for relief to more than 860.
On Sept. 29, 2016, the department filed a complaint in United States v. Wells Fargo Bank N.A., d/b/a Wells Fargo Dealer Services in the Central District of California, alleging that Wells Fargo repossessed 413 vehicles of SCRA-protected servicemembers without court orders between Jan. 1, 2008 and July 1, 2015. On the same day, the department agreed to a settlement that required Wells Fargo to pay $10,000 to each of the affected servicemembers, plus any lost equity in the vehicle with interest. Wells Fargo was also required to pay a $60,000 civil penalty to the United States and repair the credit of all affected servicemembers. At the time of the settlement, the department announced that 413 servicemembers were eligible to receive compensation. The prior press release can be found here.
Since entering into the settlement with the department in September 2016, Wells Fargo has identified additional violations affecting approximately 450 servicemembers that occurred during the period covered by the settlement. Wells Fargo has begun to provide over $5,400,000 in compensation to these additional servicemembers under the agreement. Together with the compensation previously announced by the department in September 2016, a total of more than 860 servicemembers and their co-borrowers are eligible to receive $10,183,950.
“Just a few days ago, we observed Veterans Day to honor those who have served our country so bravely,” said Acting Assistant Attorney General John M. Gore. “The Justice Department will continue to honor their service throughout the year by vigorously enforcing servicemembers’ rights under federal law. The men and women of our armed forces should be able to devote their full attention to their military duties, without having to worry about their cars being repossessed back home. We are pleased that our settlement agreement has ensured that hundreds of additional servicemembers will be compensated for the damages they suffered as a result of illegal auto repossessions.”
“The SCRA provides important protections and is intended to prevent unnecessary financial hardship for the brave women and men who serve in our armed forces,” said Acting United States Attorney Sandra R. Brown. “Losing an automobile through an unlawful repossession while serving our country is a problem servicemembers should not have to confront. We are pleased that Wells Fargo is taking action to compensate these additional servicemembers as required under the settlement with the Justice Department. My Office is committed to protecting the rights of servicemembers on all fronts.”
The SCRA requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, Wells Fargo prevented servicemembers from obtaining a court’s review of whether their repossessions should be delayed or adjusted to account for their military service.
For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov. Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/content/locator.php.
Production Company Registers Under the Foreign Agent Registration Act as Agent for the Russian Government Entity Responsible for Broadcasting RTRead the Press Release
Acting Assistant Attorney General for National Security Dana J. Boente announced today that T&R Productions, LLC (T&R), a Washington, D.C., corporation, registered today with the Department of Justice under the Foreign Agents Registration Act (FARA) as an agent for ANO TV-Novosti, the Russian government entity responsible for the worldwide broadcasts of the RT Network (RT). The National Security Division’s FARA Registration Unit is reviewing T&R’s filings for sufficiency.
“Americans have a right to know who is acting in the United States to influence the U.S. government or public on behalf of foreign principals,” said Acting Assistant Attorney General Boente. “The Department of Justice is committed to enforcing FARA and expects compliance with the law by all entities engaged in specified activities on behalf of any foreign principal, regardless of its nationality.”
FARA does not inhibit freedom of expression, does not restrict the content of information disseminated, does not restrict an agent’s lobbying or publication of information or advocacy and applies neutrally to all foreign countries. It requires public disclosure of certain activities and relationships through registration by “agents of foreign principals” with the Justice Department. FARA does not limit publishing of materials or viewpoints; it requires only registration, labeling of informational materials and broadcasts, and recordkeeping.
Congress passed FARA in 1938, intending to ensure that the American public and our lawmakers know the source of information that is provided at the behest of a foreign principal, where that information may be intended to influence U.S. public opinion, policy and laws. The law does not restrict registrants from operating, however. Other U.S. agents of foreign media entities are currently registered under FARA and continue to operate freely in the United States.
Since August 2014, T&R has operated studios for RT, hired and paid all U.S.-based RT employees, and produced English-language programming for RT, which is both shown on cable networks across the United States and available on RT’s website. T&R’s filings are available to the public at www.fara.gov.
Justice Department Announces Compensation Process for Western Union Fraud Victims with Funds Recovered Through Asset ForfeitureRead the Press Release
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division announced today that the United States has begun the remission compensation process to provide recovery for Western Union Company (Western Union) fraud victims from the $586 million civil forfeiture.
As part of agreements with the Department of Justice (DOJ) and the Federal Trade Commission (FTC) filed earlier this year in the Middle District of Pennsylvania, Western Union, a global money services business headquartered in Englewood, Colorado, agreed to forfeit $586 million. According to admissions contained in the deferred prosecution agreement (DPA) and the accompanying statement of facts, between 2004 and 2012, Western Union processed hundreds of thousands of transactions for Western Union agents and others involved in an international consumer fraud scheme. As part of the scheme, the perpetrators of fraud schemes contacted victims in the United States and falsely posed as family members in need or promised prizes or job opportunities. Victims were then directed to send money through Western Union to purportedly help their relative or claim their prize. Various Western Union agents were complicit in these fraud schemes, often processing the fraud payments in return for a cut of the fraud proceeds.
Through the remission process, victims of fraud who sent a money transfer through Western Union between Jan. 1, 2004, and Jan. 19, may be eligible for compensation for their losses. The Department of Justice will send petitions for remission to over 500,000 potential victims. These petitions will provide information and instructions regarding making a claim for compensation online or through the mail. Individuals who believe they may be victims but who do not receive a petition may obtain a petition form online at www.WesternUnionRemission.com. The deadline for filing a petition is Feb. 12, 2018.
“Knowing that its agents were involved in fraudulent schemes – and knowing that it had a legal obligation to detect and report this criminal conduct to the authorities – Western Union failed to act, leading to massive victim losses,” said Acting Assistant Attorney General Blanco. “Returning forfeited funds to these victims and other victims of crime is one of the Department’s highest priorities. I want to commend our prosecutors, the FTC, and our law enforcement agent partners for their hard work that led to vindicating the rights of these victims.”
“American consumers lost money while Western Union looked the other way,” said Acting Chairman Maureen K. Ohlhausen of the FTC. “We’re pleased to start the process that will get that money back into consumers’ rightful hands.”
“The U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud schemes for many years,” said Inspector in Charge Daniel B. Brubaker of the United States Postal Inspection Service’s Philadelphia Division. “While enforcing the laws that protect the innocent victims of these crimes, we are honored and take pleasure in returning the proceeds of international mass marketing fraud activity to their rightful owners, the victims, whenever possible. We would like to thank the victims who reported the fraudulent activity and worked with us during the investigation. We would also like to thank our law enforcement and regulatory investigative partners, particularly the U.S. Attorney’s Office for the Middle District of Pennsylvania, the Department of Justice’s Money Laundering and Asset Recovery Section and the FTC for their contributions to this collaborative effort.”
More information regarding the remission process, including eligibility criteria, updates, and frequently asked questions is available at www.WesternUnionRemission.com or by calling (844) 319-2124. Gilardi & Co. LLC is serving as the remission administrator in this matter. Neither Gilardi & Co., LLC nor DOJ will ask for any payment in order to participate in this remission process. For more information on how to protect yourself from fraud, please visit www.consumer.ftc.gov or www.postalinspectors.uspis.gov.
The U.S. Postal Inspection Service conducted the criminal fraud investigation. The FTC conducted the civil fraud investigation. Since fiscal year 2000, the Money Laundering and Asset Recovery Section, which will oversee the remission process, has successfully used its specialized expertise to return $5.1 billion in forfeited assets to victims of crime.
Attorney General Jeff Sessions Statement on the FBI's 2016 Hate Crimes StatisticsRead the Press Release
Attorney General Jeff Sessions released the following statement on the FBI’s announcement of the 2016 Hate Crimes Statistics:
“No person should have to fear being violently attacked because of who they are, what they believe, or how they worship.
“In June, the Hate Crimes Subcommittee of the Justice Department’s Task Force on Crime Reduction and Public Safety met with representatives from affected communities. The subcommittee continues to explore ways to expand and improve training for federal, state, and local prosecutors and investigators; improve data collection of hate crimes; and to create even better partnerships with local law enforcement and affected communities.
“The full report of the Task Force is due in January, but there are actions we can take now, like continuing to aggressively prosecute those who violate an individuals’ civil rights. Most recently, the Justice Department cross-designated a Civil Rights Division prosecutor to assist in the trial of an Iowa man accused of murdering Kedarie Johnson, a transgender teenager. I was pleased to learn on November 3, 2017 that the trial resulted in a conviction, and the man now faces life in prison.
“The Department of Justice is committed to ensuring that individuals can live without fear of being a victim of violent crime based on who they are, what they believe, or how they worship.”
Attorney General Jeff Sessions Appoints Members to U.S. Attorney Advisory CommitteeRead the Press Release
Attorney General Jeff Sessions today announced the appointment of nine new U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). AGAC was created in 1973 and reports to the Attorney General through the Deputy Attorney General. AGAC represents the U.S. Attorneys and provides advice and counsel to the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys.
The new appointees include: U.S. Attorney for the Southern District of Alabama Richard Moore; U.S. Attorney for the District of Utah John W. Huber; U.S. Attorney for the District of Columbia Jessie K. Liu; U.S. Attorney for the Northern District of Ohio Justin E. Herdman; U.S. Attorney for the Eastern District of North Carolina Robert Higdon; U.S. Attorney for the Northern District of Oklahoma Trent Shores; U.S. Attorney for the Southern District of Indiana Joshua Minkler; U.S. Attorney for the Eastern District of Missouri Jeff Jensen; and Acting U.S. Attorney for the District of Alaska Bryan Schroder.
U.S. Attorney Richard Moore will serve as the Chair of AGAC, and U.S. Attorney John W. Huber will serve as the Vice Chair.
“I am pleased to announce the first members of the Attorney General’s Advisory Committee under this administration. These U.S. Attorneys will play an important role in carrying out the Department of Justice’s mission to reduce violent crime, combat transnational criminal organizations, secure our southern border, end the devastating opioid crisis, and return to the rule of law,” said Attorney General Sessions.
A brief bio on each nominee is below:
Richard Moore (Chair)
The Senate confirmed Richard Moore’s appointment as United States Attorney for the Southern District of Alabama in September 2017. Prior to this appointment, Mr. Moore served as the Inspector General for the Tennessee Valley Authority. From May 2009 to March 2011, Mr. Moore was the Chairman of the Investigations Committee for the Council of Inspectors General on Integrity and Efficiency. Prior to this position, Mr. Moore served as an Assistant United States Attorney for the Southern District of Alabama from 1985 to 2003. From 1997 to 1998, Mr. Moore was an Atlantic Fellow in Public Policy at Oxford University in England. Mr. Moore received his B.S., summa cum laude, from Spring Hill College and his J.D. from the Samford University Cumberland School of Law.
John W. Huber (Vice Chair)
Since June 2015, John Huber has served as the United States Attorney for the District of Utah, and in August 2017, the Senate again confirmed his appointment. Prior to being United States Attorney, Mr. Huber served as an Assistant United States Attorney for thirteen years. Mr. Huber began his prosecutorial career in the Weber County (Utah) Attorney’s Office, and later served as the Chief Prosecutor for West Valley City, Utah, before joining the United States Attorney’s Office in 2002. Mr. Huber received his B.A. from the University of Utah and his J.D. from the University of Utah College of Law.
Justin E. Herdman
The Senate confirmed Justin Herdman’s appointment as United States Attorney for the Northern District of Ohio in August 2017. Prior to this appointment, Mr. Herdman was a partner at Jones Day and an Assistant United States Attorney in Cleveland, Ohio. Mr. Herdman previously served as an Assistant District Attorney in New York City from 2001 to 2005 and as an associate at Vorys, Sater, Seymour and Pease, LLP. He is currently a Judge Advocate General in the United States Air Force Reserve. Mr. Herdman received his B.A. from Ohio University, his Master of Philosophy from the University of Glasgow and his J.D. from Harvard Law School.
Robert Higdon
The Senate confirmed Robert Higdon to be United States Attorney for the Eastern District of North Carolina in October 2017. Prior to this appointment, Mr. Higdon was a partner at the law firm of Williams Mullen. He previously served as an Assistant United States Attorney in both the Western and Eastern Districts of North Carolina. In the Eastern District U.S. Attorney’s Office, Mr. Higdon served as Chief of the Criminal Division for more than 11 years. Mr. Higdon also served as senior trial counsel in the Public Integrity Section of the Department of Justice. He received his B.A., cum laude, from Wake Forest University and his J.D. from Wake Forest University School of Law.
Jeff Jensen
The Senate confirmed Jeff Jensen to be United States Attorney for the Eastern District of Missouri in October 2017. Prior to this appointment, Mr. Jensen was a partner at Husch Blackwell LLP. He served as an Assistant United States Attorney in the Eastern District of Missouri starting in 1999, and was Executive United States Attorney from 2005 to 2009. Prior to joining the U.S. Attorney’s Office, Mr. Jensen was an FBI Special Agent from 1989 to 1999. While working at the FBI, Mr. Jensen attended St. Louis University School of Law at night, graduating magna cum laude. He also received his B.A., cum laude, from Indiana University School of Business.
Jessie K. Liu
The Senate confirmed Jessie Liu to be United States Attorney for the District of Columbia in September 2017. Ms. Liu was previously Deputy General Counsel for the United States Department of the Treasury and a partner at the law firms of Morrison & Foerster LLP and Jenner & Block LLP. In addition, she has served as an Assistant United States Attorney in the District of Columbia and in several senior positions in the United States Department of Justice, including as Deputy Assistant Attorney General in the Civil Rights Division, counsel to the Deputy Attorney General, and deputy chief of staff for the National Security Division. Ms. Liu clerked for then-Chief Judge Carolyn Dineen King of the United States Court of Appeals for the Fifth Circuit. She received her A.B., summa cum laude, from Harvard University and her J.D. from Yale Law School.
Joshua Minkler
The Senate confirmed Joshua Minkler to be United States Attorney for the Southern District of Indiana in October 2017. Since June 2015, Mr. Minkler had served as the interim United States Attorney for the Southern District of Indiana. Prior to that position, he served for 21 years as an Assistant United States Attorney in the Southern District of Indiana. Before he joined the U.S. Attorney’s Office, Mr. Minkler served for five years as an assistant prosecuting attorney in the Office of the Kent County Michigan Prosecuting Attorney. Mr. Minkler received his B.A. from Wabash College, and his J.D. from Indiana University Maurer School of Law.
Bryan Schroder
Bryan Schroder’s nomination to be United States Attorney for the District of Alaska is pending in the Senate. Mr. Schroder is currently the Acting United States Attorney for the District of Alaska, and previously served as the First Assistant United States Attorney and Criminal Chief. Mr. Schroder has served in the U.S. Attorney’s Office for more than 11 years. Mr. Schroder is a retired Captain in the U.S. Coast Guard, having served for 24 years. Mr. Schroder graduated from the U.S. Coast Guard Academy and the University of Washington School of Law.
R. Trent Shores
The Senate confirmed Robert Trent Shores to be United States Attorney for the Northern District of Oklahoma in September 2017. Prior to this appointment, Mr. Shores was an Assistant United States Attorney in the Northern District of Oklahoma. Mr. Shores previously served as First Assistant Attorney General for the State of Oklahoma and deputy director for the Department of Justice’s Office of Tribal Justice, where he developed initiatives to promote public safety in Indian Country. Mr. Shores received his undergraduate degree from Vanderbilt University and his J.D. from the University of Oklahoma College of Law.
New York Man Pleads Guilty to Trafficking in Endangered Lion and Tiger PartsRead the Press Release
Arongkron “Paul” Malasukum, a resident of Woodside, New York, pleaded guilty today to illegally trafficking parts from endangered African lions and tigers.
The guilty plea was announced by Acting Assistant Attorney General Jeffrey Wood for the Department of Justice’s Environment and Natural Resources Division and Brit Featherston, Acting United States Attorney for the Eastern District of Texas.
Malasukum, 41, pleaded guilty today in Plano, before U.S. Magistrate Judge Kimberly Priest Johnson for the Eastern District of Texas, to a one count information charging him with wildlife trafficking in violation of the Lacey Act.
In papers filed in federal court in April 2016, Malasukum admitted to purchasing a tiger skull from undercover agents who were working for the U.S. Fish and Wildlife Service. Malasukum also admitted to purchasing lion skulls from an auction house in Texas through the undercover agents on another occasion. The agents were acting as “straw buyers” for Malasukum. Malasukum, who knew his out-of-state purchases could draw attention from federal law enforcement, gave the undercover agents cash and told them which items to bid on and ultimately win. After the purchases, Malasukum shipped the tiger and lion skulls from Texas to his home in Woodside, New York. From New York, Malasukum shipped the skulls to Thailand for sale to a wholesale buyer.
As part of his plea, Malasukum admitted that between April 9, 2015 and June 29, 2016, he exported approximately 68 packages containing skulls, claws, and parts from endangered and protected species, with a total fair market value in excess of $150,000. All of the exports were sent to Thailand.
“This guilty plea is another positive result from the continued partnership between the U.S. Fish and Wildlife Service and the Justice Department,” said Acting Assistant Attorney General Wood. “Together we will continue to investigate and prosecute those who engage in illegal trade in protected wildlife.”
“Reasonable laws are in place to protect endangered animals, and to ensure that future generations have the opportunity to see and enjoy wildlife as we do today,” said Acting United States Attorney Featherston. “There are fewer than four thousand tigers remaining in the wild and they must be protected from harm. Malasukum’s illegal actions breed further destructive behavior by others, such as the poaching of other endangered animals for greed. Lawful hunting and conservation go hand in hand; and law enforcement will protect those animals that are deemed endangered.”
"The U.S. Fish and Wildlife Service works to combat the illegal international and interstate trafficking of wildlife,” said Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service Ed Grace. “We work closely with the Department of Justice and others to investigate these cases and will continue to apprehend those who exploit these species for commercial gain.”
The investigation was handled by the U.S. Fish and Wildlife Service’s Office of Law Enforcement, U. S. Attorney’s Office for the Eastern District of Texas, the Justice Department’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney James Noble and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
New Orleans Woman Convicted for Role in $3.2 Million Medicare Kickback SchemeRead the Press Release
WASHINGTON – A federal jury found a New Orleans woman guilty today for her role in an approximately $3.2 million Medicare fraud and kickback scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Duane A. Evans of the Eastern District of Louisiana, Acting Special Agent in Charge Daniel Evans of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office made the announcement.
After a three-day trial, Sandra Parkman, 61, was convicted of one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive kickbacks, two counts of health care fraud and five counts of accepting kickbacks. Sentencing is scheduled for Jan. 17, 2018, before U.S. District Judge Kurt D. Engelhardt of the Eastern District of Louisiana, who presided over the trial.
According to evidence presented at trial, from 2004 to 2009, Parkman and others engaged in a scheme to provide medically unnecessary durable medical equipment, including power wheelchairs, to Medicare beneficiaries in and around New Orleans. The evidence showed that Parkman received kickback payments from the equipment supply company in return for providing eligible Medicare beneficiaries’ personal information to the company, as well as to obtain physican signatures on order forms.
As a result of the scheme, Parkman’s co-defendant, Tracy Richardson Brown, caused Medicare to pay over $3.2 million based on those illegally obtained referrals, the evidence showed.
Brown was previously convicted following a trial in June 2016 and was sentenced to 48 months in prison.
This case was investigated by the FBI and HHS-OIG. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Massachusetts Business Owner Charged with Tax CrimesRead the Press Release
A business owner was charged by a federal grand jury in Boston, Massachusetts, with attempting to obstruct the internal revenue laws, aiding and assisting in the filing of fraudulent corporate, personal, and employment tax returns, tax evasion, and structuring financial transactions, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Nicholas Boulas, of North Reading, owned and operated Nick’s Painting Service Inc. (NPS), which provided painting services to residential and commercial customers in the Boston area. From 2009 through 2014, Boulas allegedly concealed approximately $4 million in business receipts by cashing approximately $2.7 million in checks and directing a substantial number of customers to write checks to him personally, which he cashed and deposited using multiple personal bank accounts. According to the indictment, he structured cash transactions to involve less than $10,000 in currency in order to evade the banks’ reporting requirements – banks are required to file reports with the U.S. Treasury for transactions involving more than $10,000 of currency, conducted by or on behalf of the same person on the same day.
The indictment alleges that Boulas caused the filing of fraudulent corporate and personal income tax returns that underreported NPS’s gross receipts, and as a result, the income Boulas earned from NPS. It further alleges that Boulas underreported income he earned from several rental properties. Boulas also allegedly paid employees “off the books” in cash to avoid paying payroll taxes, and caused the filing of fraudulent employment tax returns that concealed the number of NPS’s employees, wages paid and taxes owed.
Boulas is also charged with obstructing the internal revenue laws by, among other things, falsely stating to IRS special agents that he reported all of NPS’s income, obstructing an IRS summons and following his interview with special agents, altering checks he received from NPS customers to conceal the memo line and hide the purpose of the payments.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Boulas faces a statutory maximum sentence of five years in prison for tax evasion, three years for obstructing the internal revenue laws, three years for aiding and assisting in the filing of fraudulent returns and ten years in prison for structuring financial transactions as a part of a pattern of illegal activity involving more than $100,000 in a 12-month period and while violating another law of the United States. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of Internal Revenue Service Criminal Investigation, who conducted the investigation, and Assistant Chief John Kane and Trial Attorney Sarah Ranney of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Justice Department Sues Northwest Trustee Services, Inc. in Bellevue, Washington, for Illegally Foreclosing on Homes of at Least 28 ServicemembersRead the Press Release
The U.S. Department of Justice today filed a lawsuit in U.S. District Court for the Western District of Washington, alleging that Northwest Trustee Services, Inc. (Northwest) violated the Servicemembers Civil Relief Act (SCRA). The complaint alleges that since 2010, Northwest completed foreclosures on at least 28 homes owned by servicemembers without obtaining the required court orders.
The SCRA protects the rights of servicemembers on active duty by suspending or modifying certain civil obligations. The law prohibits foreclosing on the home of a servicemember during active military service and one year thereafter without a court order if the mortgage originated prior to the servicemember’s period of military service.
The department launched an investigation into Northwest’s practices after United States Marine veteran Jacob McGreevey of Vancouver, Washington, submitted a complaint to the department’s Servicemembers and Veterans Initiative in May 2016. Northwest had foreclosed on McGreevey’s home in August 2010, less than two months after he was released from active duty in Operation Iraqi Freedom. McGreevey sued both PHH Mortgage (his mortgage servicer) and Northwest in 2016, but a U.S. District Court Judge accepted PHH and Northwest’s argument that McGreevy had waited too long to file his case, and dismissed the case on that basis. The department’s investigation revealed that, in addition to McGreevey, NWTS had foreclosed on other homes of SCRA-protected servicemembers in violation of the SCRA since 2010.
“As we reflect this Veterans Day on the great debt we owe to those who have fought so hard for our freedom, we also reaffirm our commitment to protecting the rights of those who serve,” said Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division. “Our men and women in uniform make immense personal sacrifices to keep our country safe. Losing their home to an unlawful foreclosure should not be one of them.”
“The loss of a home is a devastating blow for anyone – but far worse for active duty service members often called to war zones far from Western Washington,” said U.S. Attorney Annette L. Hayes. “Our investigation revealed that Northwest Trustee Services repeatedly failed to comply with laws that are meant to ensure our service members do not have to fight a two front war – one on behalf of all of us, and the other against illegal foreclosures. My office will continue to work closely with our colleagues in the Civil Rights Division in Washington, D.C. to protect Western Washington service members from this kind of misconduct.”
In addition to monetary damages for affected servicemembers, the SCRA provides for civil monetary penalties of up to $60,788 for the first offense and $121,577 for each subsequent offense. The department will also seek injunctive relief to prevent future foreclosures that violate the SCRA.
Northwest Trustee Services is based in Bellevue, Washington, and describes itself as a full-service trustee company providing foreclosure services to mortgage lenders in the Western United States. The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
This case is being jointly handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of Washington.
The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, often in partnership with local United States Attorney’s Offices. Since 2011, the department has obtained over $450 million in monetary relief for servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Former Department of Veterans Affairs Employee Indicted on Charges of Wire Fraud, Bribery and TheftRead the Press Release
A federal grand jury sitting in the District of Columbia returned an indictment yesterday charging a former Department of Veterans Affairs (VA) official with a scheme to steal benefit money for veterans in need from the VA.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement.
Russell M. Ware, 39, of Upper Marlboro, Maryland, was charged with four counts of wire fraud in connection with a scheme to steal more than $66,000 from the VA. Ware was also charged with one count of bribery and one count of theft of government property.
According to the indictment, between September 2013 and May 2014, Ware devised a scheme to steal more than $21,000 in VA disability benefit money, which he had wired to his own bank account. The indictment further alleges that from October 2014 to February 2015, Ware directed additional disability benefits totaling almost $46,000 to a friend, Jacqueline Crawford, 33, of Gulfport, Mississippi, who was not entitled to receive the money. Crawford then kicked back more than $13,000 to Ware, at Ware’s direction, usually through the use of Walmart2Walmart money transfers. Crawford pleaded guilty in February 2017, to an information charging her with a single count of theft of government property related to the scheme, and is awaiting sentencing.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case is being investigated by the Department of Veterans Affairs Office of Inspector General and is being prosecuted by Trial Attorneys Richard B. Evans and Rebecca Moses of the Criminal Division’s Public Integrity Section.
Department of Justice Announces Significant Tool in Prosecuting Opioid Traffickers in Emergency Scheduling of All FentanylsRead the Press Release
The Department of Justice today announced that the Drug Enforcement Administration (DEA) intends to take immediate action against the flow of illicit fentanyl analogues into this country and the alarming increase in overdose deaths linked to synthetic opioids by scheduling all fentanyl-related substances on an emergency basis.
When the DEA’s order takes effect, anyone who possesses, imports, distributes, or manufactures any illicit fentanyl analogue will be subject to criminal prosecution in the same manner as for fentanyl and other controlled substances. The action announced today will make it easier for federal prosecutors and agents to prosecute traffickers of all forms of fentanyl-related substances.
“President Trump has made it a cornerstone of his presidency to combat the deadly drug crisis in America, and today the Department of Justice is taking an important step toward halting the rising death toll caused by illicit fentanyls in the United States,” said Attorney General Jeff Sessions. “By scheduling all fentanyls, we empower our law enforcement officers and prosecutors to take swift and necessary action against those spreading these deadly poisons. I also urge the many members of Congress who clearly share our concern and alarm over fentanyl’s role in our opioid overdose epidemic to do their part by permanently scheduling these lethal substances.”
The bulk of illicit fentanyls arrive in the United States through the mail or express shipping systems, or are imported into the United States across the southwest border. Overseas chemical manufacturers, aided by illicit domestic distributors, currently attempt to evade regulatory controls by creating structural variants of fentanyl that are not directly listed under the Controlled Substances Act (CSA). Without the action announced today, prosecutors must overcome cumbersome evidentiary hurdles to secure convictions of these traffickers under the Analogue Act.
The DEA’s action is a proactive approach to minimize the potential harm of these substances with no medical or industrial use and will facilitate criminal, civil, and administrative actions against anyone trafficking in fentanyl variants. The temporary scheduling will go into effect no earlier than 30 days after the DEA publishes its notice of intent and will last up to two years, with a possibility of a one-year extension if certain conditions are met.
“Today’s action represents just one step in the ongoing fight to battle the opioid epidemic,” said DEA Acting Administrator Robert W. Patterson. “DEA is committed to using all of its tools to aggressively fight and address the opioid crisis and growing fentanyl problem plaguing the United States.”
This action is the latest in a series of aggressive and innovative actions by Attorney General Jeff Sessions and the Department of Justice to stem the opioid epidemic through support to law enforcement and public health authorities.
Georgia Federal Court Prohibits Tax Preparer from Preparing Tax Returns for OthersRead the Press Release
A federal court in Atlanta, Georgia, has permanently barred Tarralis K. Mack, individually and doing business as Metro Tax Advisors, from preparing federal tax returns for others, the Justice Department announced today. Mack previously pleaded guilty to willfully aiding or assisting in, or procuring counseling, or advising the preparation or presentation of a false or fraudulent amended income tax return.
The civil injunction order, to which the defendant consented, was signed by Judge William S. Duffey, Jr. of the U.S. District Court for the Northern District of Georgia.
According to the complaint, Mack prepared federal income tax returns for customers that generated fraudulent refunds by creating fictitious business expenses to offset wage income. The complaint alleges that none of these customers owned any businesses and Mack did not request information to substantiate the business income and expenses he claimed on the customers’ returns. The returns prepared by Mack and audited by the Internal Revenue Service (IRS) claimed a total of $481,302 in fraudulent refunds, according to the complaint.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
District Court Enters Order Against Los Angeles Area Telemarketing Companies and Their ExecutivesRead the Press Release
A federal court entered an order against three Los Angeles area telemarketing companies and two executives, the Department of Justice announced today. That order, entered by Judge Michael W. Fitzgerald in the Central District of California, permanently bans the companies and one executive from future telemarketing activity and restricts the telemarketing activities of another executive. The order also imposes a civil monetary penalty.
The Department filed a complaint on March 10, 2016, alleging that three companies, KFJ Marketing LLC, Sunlight Solar Leads LLC, and Go Green Education, initiated at least 1.3 million telemarketing calls that violated the Telemarketing Sales Rule. Those calls, which were intended to entice consumers to schedule appointments with solar panel providers, began with a prerecorded message warning consumers of a “pending 14% rate increase” in their energy bills. Francisco and Julio Salvat owned and operated all three companies.
“Unwanted telemarketing calls invade the privacy of American consumers,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the Federal Trade Commission to ensure telemarketers adhere to laws designed to protect against abusive and deceptive telemarketing practices.”
The filing of the suit was prompted by numerous complaints made by consumers to the Federal Trade Commission about the defendants’ telemarketing calls. The complaint alleged defendants called telephone numbers listed on the National Do-Not-Call Registry, initiated unlawful robocalls, displayed false information on consumers’ Caller IDs, and ignored consumer requests not to receive additional calls. The government’s complaint sought a permanent injunction to prevent future unlawful calls and a civil monetary penalty.
On Oct. 31, 2017, the United States and the defendants filed a proposed stipulated order for permanent injunction and civil penalty judgment. That stipulated order, entered by the district court, permanently bans the three corporate defendants and Francisco Salvat from engaging in telemarketing activity. Additionally, the order prohibits Julio Salvat from violating the Telemarketing Sales Rule and restricts his ability to place robocalls. The stipulated order also requires defendants to pay a $1.4 million dollar civil penalty, all of which but $155,000 will be suspended based on defendants’ inability to pay the entire penalty.
This matter was handled by Trial Attorneys Jacqueline Blaesi-Freed and Lisa Hsiao of the Civil Division’s Consumer Protection Branch, with assistance from Syliva Kundig of the Federal Trade Commission’s Western Region.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Ohio Businessman Convicted of Tax FraudRead the Press Release
A Germantown, Ohio, businessman who controlled the operation of an anti-aging skincare business in Dayton, Ohio, was convicted today of seven counts of filing false corporate, individual, and private foundation tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment and evidence presented at trial, James Wright, 62, ran the day-to-day operations of B&P Company Inc. (B&P), which manufactured and sold an array of skincare products, including Frownies, a wrinkle reduction product endorsed by celebrities. Wright’s great-grandmother invented Frownies in 1889 and the product has been sold by his family ever since. Beginning in the late 1990s, Wright formed a series of entities that he used to divert money from B&P to himself and members of his family. Instead of receiving a salary from B&P, Wright incorporated a company called The Remnant Inc. (The Remnant), to which B&P paid “management fees.” Wright caused the preparation of false corporate tax returns for The Remnant on which he deducted personal expenses, including rent, utilities, and pool and lawn care for his residence. Wright also used funds from The Remnant’s bank accounts to pay rent for one of his daughters in New York and California. Wright paid personal expenses directly out of B&P’s bank accounts as well. He directed employees of B&P to use corporate funds to pay for the rent and utilities at an apartment rented by his mother as well as rent for his daughter in New York.
In 2004, Wright applied to the IRS for non-profit status for a private foundation called Fore Fathers Foundation. Wright caused B&P to made donations to the foundation and then used more than $170,000 of the foundation’s funds over a seven-year period to pay for high school and college tuition for all five of his children. According to the testimony at trial, these payments constituted acts of self-dealing that Wright was required to disclose on the foundation’s tax returns and pay excise taxes on. When Wright filed the foundation’s 2003 through 2009 returns however, he falsely reported that he had not engaged in acts of self-dealing and failed to pay the excise taxes due on the distributions.
The evidence at trial established that Wright had a long history of interactions with the IRS. In 1998, Wright pleaded guilty to tax evasion for using trusts to conceal income from the IRS. This criminal case arose from an audit of Wright’s individual income tax returns. In 2002, the IRS initiated an audit of The Remnant’s income tax returns. During a 2010 audit of B&P’s income tax returns, Wright falsely stated to an IRS revenue agent that he had no prior dealings with the IRS, despite the fact that he had been criminally prosecuted in the 1990s and audited in both the 1990s and early 2000s.
U.S. District Judge Walter H. Rice did not set a date for sentencing. Wright faces a statutory maximum sentence of three years in prison on each count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Southern District of Ohio for their support during the investigation and prosecution of this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Drug Enforcement Administration Collects Record Number of Unused Pills as Part of its 14th Prescription Drug Take Back DayRead the Press Release
Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its more than 4,200 local and tribal law enforcement partners a record-setting 912,305 pounds—456 tons—of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
Now in its 8th year, National Prescription Drug Take Back Day events continue to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action comes just days after President Donald J. Trump announced the mobilization of his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
“In the midst of the worst drug crisis in American history, drug abuse prevention has never been more important,” said Attorney General Jeff Sessions. “And at the Department of Justice, it’s what we do every day. By taking dangerous drugs off of our streets, we keep addiction from spreading. One of the most important ways we do that is through the DEA’s semi-annual Prescription Drug Take Back Days. The latest Take Back day was the most successful yet, safely disposing of a record amounts of drugs. I have no doubt that will save lives. At a time like this, this event is having more of an impact than ever. I want to thank all of our local law enforcement partners who helped at all 5,300 collection sites to make this possible—and everyone who participated. They're helping us end this crisis one pill at a time.”
“More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the highest rate of overdose deaths this country has ever seen,” said Acting Administrator Robert W. Patterson. “This is a crisis that must be addressed from multiple angles. Educating the public and removing these medications from households across the Unites States prevents misuse where it often starts.”
This year, DEA worked with its tribal law enforcement partners to set up 115 collection sites on tribal lands. Opioid addiction impacts Native American communities just as it does all parts of American society. By partnering with FBI, BIA, and tribal law enforcement, the DEA was able to greatly expand tribal participation in the Take Back program. DEA remains committed to supporting public safety in American Indian and Alaska Native communities.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
DEA’s next Prescription Drug Take Back Day is April 28, 2018.Attorney General Sessions Welcomes Steven Engel as Assistant Attorney General for the Office of Legal CounselRead the Press Release
Attorney General Jeff Sessions welcomed the confirmation of Steven Engel as the Assistant Attorney General of the Department of Justice’s Office of Legal Counsel.
“I applaud the Senate for the confirmation of Steven Engel,” said Attorney General Sessions. “I am confident his extensive legal work and his previous experience in the Office of Legal Counsel have prepared him very well to lead the office that provides legal advice to the President, to the Department, and to every other Executive Branch agency.”
The Assistant Attorney General in charge of the Office of Legal Counsel provides legal advice to the President and all Executive Branch agencies. The Office drafts legal opinions of the Attorney General and provides its own written opinions and oral advice in response to requests from the Counsel to the President, the various agencies of the Executive Branch, and other offices within the Department. Such requests typically deal with legal issues of particular complexity and importance, or those about which two or more agencies are in disagreement. The Office is also responsible for reviewing pending legislation for constitutionality.
All executive orders and substantive proclamations proposed to be issued by the President are reviewed by the Office of Legal Counsel for form and legality, as are various other matters that require the President’s or the Attorney General’s formal approval.
Prior to his confirmation, Engel was a partner at the law firm Dechert LLP, where he appeared in courts across the country, handling a wide range of civil litigation matters, including in the areas of administrative law, commercial litigation, and securities law. An experienced appellate litigator, Engel clerked on the U.S. Court of Appeals for the Ninth Circuit for Judge Alex Kozinski and on the U.S. Supreme Court for Associate Justice Anthony M. Kennedy. In addition, Engel regularly argued in the U.S. Courts of Appeals and the New York appellate courts, and handled appeals before the U.S. Supreme Court, seven U.S. Courts of Appeal, and numerous state appellate courts. Engel was also a member of the pro bono panel for the U.S. Court of Appeals for the Second Circuit.
Before joining Dechert, Engel served as Deputy Assistant Attorney General for the Department’s Office of Legal Counsel, where he provided legal advice to senior policymakers on issues facing the Executive Branch.
Engel graduated summa cum laude from Harvard College and received a master’s degree in history from Cambridge University, where he was a Knox Fellow. He received his law degree from the Yale Law School, where he was the Essays Editor for the Yale Law Journal.
Denaturalization Sought Against Four Somalia-Born Individuals Who Falsely Claimed to be a Family and Were Admitted to the United States on Diversity Immigrant VisasRead the Press Release
The U.S. Department of Justice, the U.S. Department of State, and the U.S. Department of Homeland Security announced today that the United States filed civil complaints in the District of Minnesota against four individuals who allegedly fraudulently obtained their naturalized U.S. citizenship. The complaints allege that the individuals—a purported husband, wife, and two sons—unlawfully, knowingly, and fraudulently represented to immigration officials that they were a family to gain admission to the United States through the Diversity Immigrant Visa Program. Each individual, the complaints allege, ultimately naturalized due to his or her fraudulent representations.
“For decades, the American people have begged and pleaded with their government for a lawful system of immigration that serves the national interest—a system that has as its foremost priorities their safety, their jobs, and their well-being,” Attorney General Jeff Sessions said. “The current immigration system is easily abused by fraudsters and nefarious actors, and that’s certainly true of the Diversity Immigrant Visa Program. If the fraud is not detected and swift enforcement actions are not taken, chain migration only multiplies the consequences of this abuse. Unfortunately, there are many instances of fraud across our immigration system. The American people deserve a better system that works for them, and the Department of Justice will continue its efforts to deliver one to them.”
The four cases, United States v. Fosia Abdi Adan; United States v. Ahmed Mohamed Warsame; United States v. Mustaf Abdi Adan; and United States v. Faysal Jama Mire were referred to the Department of Justice by the U.S. Department of State’s Diplomatic Security Service (DSS) and U.S. Immigration and Customs Enforcement (ICE), with investigative support from ICE’s Homeland Security Investigations and U.S. Citizenship and Immigration Services’ (USCIS) Fraud Detection and National Security Directorate.
“I previously taught civics classes, and saw firsthand how hard people work to come to the United States legally and honestly,” Acting Secretary Elaine Duke said. “They were so proud of their accomplishments. It is out of respect for those people that we cannot tolerate fraud, deception, and abuse of our legal immigration system. Fraudulently obtained citizenship is an affront to our American values, the rule of law, and all those who honestly attained their immigration status.”
“We are pleased at the outcome of the Justice Department’s investigation,” Assistant Secretary of State for Consular Affairs Carl Risch said. “The Department of State values the partnership with the Justice Department in our efforts to vigorously prevent and jointly combat U.S. passport and visa fraud. Deterring, detecting, and investigating U.S. passport and U.S. visa fraud are essential to protecting the integrity of consular processes and safeguarding our national security.”
A description of each of the four cases and the allegations of the United States are as follows:
Fosia Abdi Adan
Fosia Abdi Adan, 51, a native of Somalia, applied for and received a diversity visa from the U.S. Embassy in Sanaa, Yemen, under the Diversity Visa (DV) Program on Jan. 10, 2001, and used her visa to unlawfully obtain beneficiary visas for the below individuals who were ineligible to be beneficiaries. Adan arrived and was admitted to the United States on Jan. 29, 2001, on her diversity immigrant visa as a permanent resident. Throughout the diversity visa application process, Adan fraudulently claimed that she was married to Jama Solob Kayre, the fictitious identity used by Ahmed Mohamed Warsame, and that she and Kayre had three children together. Such children included Mohamed Jama Solob, the fictitious identity used by Mustaf Abdi Adan, and Mobarak Jama Solob, the fictitious identity used by Faysal Jama Mire. Adan and Warsame, who used the fictitious identity of Jama Solob Kayre, obtained a divorce in Minnesota for their fictitious marriage after Adan was admitted as a permanent resident. Adan continued to fraudulently represent her previous fictitious marriage and fraudulently represent her fictitious parentage of Mohamed Jama Solob and Mobarak Jama Solob, throughout the naturalization process. Adan naturalized on Aug.16, 2006. Adan has been residing in Eden Prairie, Minnesota. Among other counts contained in the complaint filed against Adan, the United States alleges that she was not lawfully admitted for permanent residence because she engaged in alien smuggling as defined by the Immigration and Nationality Act, and thus was never eligible to naturalize.
Ahmed Mohamed Warsame
Ahmed Mohamed Warsame aka Jama Solob Kayre, 54, a native of Somalia, using the fictitious identity of Jama Solob Kayre, applied for and received a beneficiary diversity visa as the fictitious spouse of Fosia Abdi Adan, the principal diversity visa immigrant of the fictitious family. Warsame unlawfully obtained his visa as the spouse of a diversity visa immigrant from the U.S. Embassy in Sanaa, Yemen, under the DV Program on Jan. 10, 2001. Warsame arrived and was admitted to the United States on May 30, 2001, on his diversity immigrant visa as a permanent resident. Throughout the diversity visa application process, Warsame fraudulently claimed that he was married to Adan and that he and Adan had three children together. Such children included Mohamed Jama Solob, the fictitious identity used by Mustaf Abdi Adan, and Mobarak Jama Solob, the fictitious identity used by Faysal Jama Mire. Adan and Warsame, who used the fictitious identity of Jama Solob Kayre, obtained a divorce in Minnesota for their fictitious marriage after Warsame was admitted as a permanent resident. Warsame continued to fraudulently represent his previous fictitious marriage and fraudulently represent his fictitious parentage of Mohamed Jama Solob and Mobarak Jama Solob, throughout the naturalization process. Warsame, using the fictitious name of Jama Solob Kayre, naturalized on Sept. 13, 2006. During his naturalization, he changed his name to Ahmed Mohamed Warsame. Warsame has been residing in St. Cloud, Minnesota.
Mustaf Abdi Adan
Mustaf Abdi Adan aka Mohamed Jama Solob, 33, a native of Somalia, using the fictitious identity of Mohamed Jama Solob, applied for and received a beneficiary diversity visa as the fictitious child of Fosia Abdi Adan, the primary diversity visa immigrant of the fictitious family. Adan unlawfully obtained his visa as the child of a diversity visa immigrant from the U.S. Embassy in Sanaa, Yemen, under the DV Program on Sept. 30, 2001. He arrived and was admitted to the United States on Dec. 9, 2001, on his beneficiary diversity immigrant visa as a permanent resident. Throughout the diversity visa application process, he fraudulently claimed that Fosia Abdi Adan was his mother and that Warsame, under the identity of Jama Solob Kayre, was his father. Mustaf Abdi Adan, using the fictitious name of Mohamed Jama Solob, naturalized on July 24, 2013, and at that time changed his name to Mustaf Abdi Adan. He has been residing in Minneapolis, Minnesota.
Faysal Jama Mire
Faysal Jama Mire aka Mobarak Jama Solob, 31, a native of Somalia, using the fictitious identity of Mobarak Jama Solob, applied for a beneficiary diversity visa as the fictitious child of Fosia Abdi Adan, the primary diversity visa immigrant. Mire unlawfully obtained his beneficiary visa as the child of a diversity visa immigrant from the U.S. Embassy in Sanaa, Yemen, under the DV Program on Sept. 30, 2001. He arrived and was admitted to the United States on Dec. 9, 2001, on his beneficiary diversity immigrant visa as a permanent resident. Throughout the diversity visa application process, he fraudulently claimed that Fosia Abdi Adan was his mother and that Warsame, under the identity of Jama Solob Kayre, was his father. Faysal Jama Mire, using the fictitious name of Mobarak Jama Solob, naturalized on April 14, 2010, and at that time changed his name to Faysal Jama Mire. He has been residing in Hennepin County, Minnesota.
Under the Immigration and Nationality Act, the citizenship of a naturalized U.S. citizen may be revoked, and his or her certificate of naturalization canceled, if such naturalization was illegally procured or procured by concealment of a material fact or by willful misrepresentation.
These cases were investigated by DSS, ICE, USCIS, and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). These cases are being prosecuted by Trial Attorney Anthony D. Bianco of OIL-DCS’s National Security and Affirmative Litigation Unit (NS/A Unit) and Trial Attorney Kathryne Gray of OIL-DCS, with support from Senior Attorney Lucia A. Fiorentino of ICE’s Office of the Principal Legal Advisor.
The claims made in the complaints are allegations only, and there has been no determination of liability.
Three Real Estate Investors Indicted for Bid Rigging in Florida Online Foreclosure AuctionsRead the Press Release
A federal grand jury in West Palm Beach returned an indictment yesterday against three high-volume Florida real estate investors for conspiring to rig bids submitted through the online property foreclosure auction process, the Department of Justice announced.
The indictment, filed in the U.S. District Court for the Southern District of Florida, charges Avi Stern, Christopher Graeve, and Stuart Hankin with conspiring to rig bids during online auctions in Palm Beach County, Florida in order to obtain foreclosed properties at suppressed prices. The indictment alleges that the conduct took place from at least January 2012 until June 2015.
These are the first indictments related to bid rigging in foreclosure auctions filed in Florida by the Justice Department’s Antitrust Division. The Antitrust Division previously has prosecuted similar bid rigging conduct in Alabama, California, Georgia and North Carolina, resulting in more than 100 guilty pleas and convictions in those states.
“These charges demonstrate that the Antitrust Division will uncover and prosecute collusion by real estate investors, regardless of whether their conduct is carried out in person, or in texts, online chats or through other electronic means,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Division will continue to work closely with our law enforcement colleagues to prosecute those responsible for taking money that would otherwise have gone to mortgage holders, Palm Beach County, and in some cases, to the owners of foreclosed homes.”
“Real estate investors who think they can swindle the system to line their pockets with ill-gotten gains beware,” said Assistant Special Agent in Charge Paul Keenan of the FBI Miami’s Field Office. “The FBI and our law enforcement partners will vigorously investigate such schemes.”
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
These charges have been filed as a result of the ongoing investigation being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Miami Division – West Palm Beach Resident Agency. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal I Section of the Antitrust Division at 202-307-6694 or www.justice.gov/atr/contact/newcase.html.
Maine Fisherman Sentenced for Illegally Trafficking American EelsRead the Press Release
Tommy Water Zhou was sentenced to 18 months’ imprisonment today for trafficking juvenile American eels (also called “elvers” or “glass eels”) in violation of the Lacey Act, following a hearing in federal district court in Norfolk, Virginia. The sentence was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division and United States Attorney Dana J. Boente for the Eastern District of Virginia.
In April 2017, Zhou pleaded guilty to violating the Lacey Act by purchasing elvers in interstate commerce that had been harvested illegally in Virginia. Court documents indicate that Zhou trafficked at least 105 pounds of elvers, which is approximately 210,000 individual eels, and worth more than $105,000. Zhou subsequently sold these elvers to international buyers and exported them from the United States.
“Illegal harvesting and trafficking of wildlife represents a dire threat to our critical ecosystems,” said U.S. Attorney Boente. “This case reaffirms our commitment to protecting Virginia’s natural resources for future generations.”
“Wildlife trafficking is a transnational crime which devastates species both at home and abroad,” said Acting Chief of Law Enforcement for the U.S. Fish and Wildlife Service Ed Grace. “In this case, the defendant chose to illegally harvest American eels – the only species of freshwater eel found in North America. This animal plays a critical role in native ecosystems and is negatively impacted by the illegal wildlife trade. We will continue to work with the Department of Justice and others to protect this species and bring those who choose profit over preservation to justice.”
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 these populations. As a result, harvesters have turned to the American eel to fill the void.
American eels spawn in the Sargasso Sea, an area of the North Atlantic Ocean bounded on all sides by ocean currents. They then travel as larvae from the Sargasso to the coastal waters of the eastern United States, where they enter a juvenile or elver stage, swim upriver, and grow to adulthood in fresh water. Elvers are exported for aquaculture in East Asia, where they are raised to adult size and sold for food. Harvesters and exporters of American eels in the United States can sell elvers to East Asia for more than $2,000 per pound.
Because of the threat of overfishing, Atlantic Coast states have cooperatively prohibited elver harvesting 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. Other Atlantic coast states, including Virginia, have commercial fisheries for adult or “yellow” eels.
This case was the result of “Operation Broken Glass,” a multi-jurisdiction U.S. Fish and Wildlife Service investigation into the illegal trafficking of American eels. To date, the investigation has resulted in guilty pleas for 18 individuals whose combined conduct resulted in the illegal trafficking of more than $5 million worth of elvers.
“In this operation, we are actively partnering with state and federal law enforcement agencies in order to protect our nation's marine resources from further exploitation.” said Acting Assistant Attorney General Wood.
Operation Broken Glass was conducted by the U.S. Fish and Wildlife Service 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, and Assistant United States Attorney Joseph Kosky.
Former CEO of Arthrocare Corporation Sentenced to 20 Years in Prison for Role in $750 Million Securities Fraud SchemeRead the Press Release
The former chief executive officer of ArthroCare Corporation, a publicly traded medical device company based in Austin, Texas, was sentenced today to 240 months in prison for his role in orchestrating a fraud scheme that resulted in shareholder losses of over $750 million.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field office made the announcement.
Michael Baker, 58, of Austin, Texas, was sentenced by U.S. District Judge Sam Sparks of the Western District of Texas, who also ordered Baker five years of supervised release following his prison sentence and to pay a fine in the amount of $1 million and to forfeit $13.7 million. At the sentencing hearing, the Court found that investors lost more than $750 million as a result of the fraud scheme. On Aug. 18, after a two-week re-trial, Baker was convicted of one count of conspiracy to commit wire fraud and securities fraud, seven counts of wire fraud, two counts of securities fraud and two counts of making false statements.
Evidence at trial showed that, beginning in 2005 and continuing until 2009, Baker, along with his co-conspirators, masterminded and executed a scheme to artificially inflate sales and revenue through a series of end-of-quarter transactions involving several of ArthroCare’s distributors. Baker, along with his co-conspirators, determined the type and amount of product to be shipped to distributors based on ArthroCare’s need to meet Wall Street analyst forecasts, rather than distributors’ actual orders. Baker and others then caused ArthroCare to “park” millions of dollars’ worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter. ArthroCare reported these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts.
The trial evidence further showed that ArthroCare’s distributors agreed to accept shipment of millions of dollars of products in exchange for special conditions, including substantial, upfront cash commissions, extended payment terms and the ability to return products, allowing ArthroCare to falsely inflate revenue by tens of millions of dollars. In the case of ArthroCare’s largest distributor, DiscoCare, Baker caused ArthroCare to acquire DiscoCare specifically to conceal from the investing public the nature and financial significance of ArthroCare’s relationship with DiscoCare. In addition to falsely inflating ArthroCare’s revenue, Baker lied when he was deposed by the U.S. Securities and Exchange Commission in November 2009 about ArthroCare’s relationship with DiscoCare, the evidence showed.
Baker’s earlier conviction was overturned by the U.S. Court of Appeals for the Fifth Circuit, resulting in the retrial. The sentence imposed on Baker today of 20 years imprisonment is identical to the sentence he received after his first trial.
Co-conspirators David Applegate and John Raffle, both former senior vice presidents of ArthroCare, pleaded guilty to multiple felonies in 2013 in connection with their participation in the scheme. Co-conspirator Michael Gluk, former chief financial officer of ArthroCare, pleaded guilty to conspiracy to commit wire and securities fraud on June 14, in connection with his participation in the scheme.
On Aug. 29, 2014, Raffle was sentenced to 80 months in prison. On Aug. 29, 2014, Applegate was sentenced to 60 months in prison. Gluk’s sentencing is scheduled for Jan. 5, 2018.
This case was investigated by the FBI’s San Antonio Field Office. The case is being prosecuted by Securities and Financial Fraud Unit Chief Benjamin D. Singer, Assistant Chief Henry P. Van Dyck and Trial Attorney Caitlin Cottingham of the Criminal Division’s Fraud Section.
Colombian National Pleads Guilty to Conspiracy to Bribe a Federal Agent to Dismiss Indictment Against Colombian Narcotics KingpinRead the Press Release
A Colombian national pleaded guilty today in connection with his role in a bribery scheme that resulted in the dismissal of a drug trafficking indictment filed against a Colombia-based cocaine trafficker from the Cali Cartel, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
According to admissions in the 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, Colombia; 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 will be sentenced on Jan. 17, 2018 before U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida. Ciccione is pending trial 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, Department of Homeland Security’s Office of Inspector General and the FBI investigated the case. The Criminal Division’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.Four MS-13 Members Indicted in Maryland on Charges of Attempted MurderRead the Press Release
A federal grand jury has indicted four MS-13 members today on charges in connection with their MS-13 gang activities, including violent crimes in aid of racketeering; use, carry and possession of a firearm during and in relation to a crime of violence; and conspiracy to commit murder in aid of racketeering.
The indictment was announced by Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephen M. Schenning for the District of Maryland; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Special Agent in Charge Daniel L. Board of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Baltimore Office; Police Chief Tim Altomare of the Anne Arundel Police Department; State Attorney Wes Adams of the Anne Arundel State’s Attorney Office and Special Agent in Charge Gordon B. Johnson of the FBI Baltimore Field Office.
Charged in the three-count indictment is Fermin Gomez-Jimenez, 20; Manuel Martinez-Aguilar, aka “El Lunatic” and “Zomb,” 19; Moises Alexis Reyes-Canales, aka “Sicopita,” 19; and Marlon Cruz-Flores, 22, all of Annapolis, Maryland.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Anne Arundel County, Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to the indictment, on Oct. 23, 2016, the defendants conspired to and attempted to murder two victims in Annapolis, Maryland, for the purpose of gaining entrance to, maintaining, and increasing position in MS-13.
All of the defendants are currently detained on related state criminal charges. Initial appearances have not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The investigation was conducted by HSI Baltimore, ATF Baltimore, Anne Arundel Police Department, Anne Arundel State’s Attorney Office, and the FBI. Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Seema Mittal, as well as Special Assistant U.S. Attorney Samantha Mildenberg are prosecuting this case.
Statement by Attorney General Sessions on Fentanyl Safety Recommendations for First RespondersRead the Press Release
Attorney General Sessions released the following statement on Fentanyl Safety Recommendations for First Responders release by the White House today:
“Members of law enforcement and other first responders protect American families from deadly drugs like fentanyl each day,” Attorney General Jeff Sessions said. “But these drugs put first responders at risk too, since even trace amounts of fentanyl can be lethal. Today’s recommendations will help protect the lives of those who protect us and make it easier for them to do their jobs. I want to thank President Trump for his leadership on this issue, which is critical to supporting law enforcement officers throughout the country.”