District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Real Estate Investor Sentenced to 12 Months in Prison for Rigging Bids at Northern California Public Foreclosure AuctionsRead the Press Release
A real estate investor was sentenced today for his role in a conspiracy to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Ramin Rad “Ray” Yeganeh was charged on June 25, 2015, in an indictment returned by a federal grand jury in the Northern District of California. Yeganeh pleaded guilty on June 14, 2017, to one count of bid rigging at real estate foreclosure auctions in Alameda County. Today, Yeganeh was sentenced to serve 12 months in prison and to serve three years of supervised release. In addition to his term of imprisonment, Yeganeh was ordered to pay $149,733 in restitution.
“As today’s sentencing shows, antitrust crimes don’t pay,” said Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division. “In addition to facing prison time, defendants can expect to pay restitution for their ill-gotten gains.”
Between September 2008 and January 2011, Yeganeh and other bidders at the auctions conspired not to bid against one another for selected properties, instead designating a winning bidder for the property at the auction. The members of the conspiracy then held a second set of private auctions known as “rounds” to award the properties to members of the conspiracy and determine payoffs for other conspirators who had agreed not to bid against each other at the public auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held.
When real estate properties are sold at public auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with the remaining proceeds, if any, paid to the homeowner.
The sentence is a result of the division’s ongoing investigation into bid rigging at public real estate foreclosure auctions in California’s San Francisco, San Mateo, Alameda and Contra Costa counties.
These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Justice Department Requires Divestitures of Radio Stations in Boston, San Francisco and Sacramento as Part of Entercom’s Acquisition of CBS RadioRead the Press Release
The Department of Justice’s Antitrust Division announced today that it will require Entercom Communications Corp. to divest 13 radio stations in order for Entercom to proceed with its acquisition of CBS Radio, Inc.
The division filed a civil antitrust lawsuit today in the U.S. District Court of the District of Columbia challenging Entercom’s proposed acquisition of CBS Radio, and simultaneously filed a proposed settlement that would resolve the competitive harm alleged in the lawsuit.
“The required divestitures will protect competition for local businesses that advertise on radio stations in Boston, San Francisco and Sacramento,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The elimination of this competition would have resulted in higher prices to businesses in these markets.”
The division alleged that the proposed transaction would have eliminated head-to-head competition between Entercom’s and CBS’s radio stations for the business of local and national advertisers on radio stations in the following markets: Boston, Massachusetts; San Francisco, California; and Sacramento, California.
The proposed settlement – which must be approved by the court – requires Entercom to divest the following radio stations to department-approved buyers:
- Boston
- WBZ AM, WBZ FM, WRKO AM, WKAF FM and WZLX FM
- San Francisco
- KOIT FM, KMVQ FM, KUFX FM and KBLX FM
- Sacramento
- KNCI FM, KYMX FM, KZZO FM and KHTK AM
Entercom is incorporated in the state of Pennsylvania, with its headquarters in Bala Cynwyd, Pennsylvania. CBS Radio, a wholly-owned subsidiary of CBS Corporation, is incorporated in the state of Delaware, with its headquarters in New York, New York. Entercom and CBS Radio own and operate a combined total of 244 broadcast radio stations in various metropolitan areas throughout the United States, including 23 of the top 25 markets.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Owen Kendler, Chief, Media, Entertainment, and Professional Services Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Fourth Floor, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
- Boston
Former Supervisory Deputy Jailer at Kentucky River Regional Jail Sentenced to over 10 Years Imprisonment for Charges Related to the Death of A Detainee and Obstruction of JusticeRead the Press Release
Justice Department announced today that a former supervisory deputy jailer at the Kentucky River Regional Jail (KRRJ), Perry County, Kentucky, has been sentenced to 126 months in federal prison related to his role in an unprovoked violent assault of a detainee.
United States District Judge Karen K. Caldwell formally sentenced Damon Wayne Hickman, 40, on his conviction. Under federal law, Hickman must serve 85 percent of his prison sentence. Following the completion of his prison term, he will be under the supervision of the United States Probation Office for three years.
On Nov. 9, 2016, Hickman entered a guilty plea to using excessive force against the detainee, resulting in bodily injury, and to deliberately ignoring the detainee’s serious medical needs, also resulting in bodily injury, and obstruction of justice. On May 11, 2017, William Curtis Howell, 60, was convicted of the same offenses after a jury trial, and he is scheduled to be sentenced in United States District Court on Dec. 19, 2017. Hickman was also convicted of obstruction of justice for creating a fake medical log to cover up his and Howell’s misconduct.
According to evidence and testimony presented during Hickman’s pretrial hearings and Howell’s jury trial, on July 9, 2013, at the Kentucky River Regional Jail in Hazard, Kentucky, Hickman and Howell violently beat Larry Trent, 54, a pretrial detainee, and left him in his cell, seriously injured and bleeding from an open head wound. Trent ultimately died from injuries sustained during the beating. Trent was in custody for a DUI charge. Hickman, who was initially charged along with Howell, pleaded guilty prior to trial and testified against Howell.
The assault started when Howell and Hickman opened the door to Trent’s cell to remove a sleeping-mat, and Trent ran out of the cell. Howell tased Trent, and after Trent was brought to the floor, Hickman, without justification, violently kicked Trent in the ribs. Hickman and Howell continued their assault after Trent was carried back to the area outside of his cell. Both deputies, without justification, punched, kicked, and stomped on Trent. Witnesses further testified that, before closing the cell door, Howell stepped into Trent’s cell and kicked Trent in the head while Trent was on the floor and posing no threat. After the assault, Hickman and Howell had other inmates clean up Trent’s blood from the floor and walls outside of his cell.
The evidence further revealed that Trent was lying motionless in his cell with blood all over his face. However, Hickman and Howell willfully failed to provide medical attention, because they did not want to get in trouble. Approximately four hours after the beating, another employee at the jail discovered Trent’s lifeless body. Paramedics were summoned and Trent was transported to a local hospital, where he was later pronounced dead.
“Corrections officers throughout the country carry out their duties in a responsible manner on a daily basis,” said Acting Assistant Attorney General John Gore. “Attacks like this one dishonor those responsible corrections officers and is a violation of civil rights, and the Department of Justice will prosecute such misconduct.”
“The criminal conduct in this case was a disgraceful breach of public trust, a grave disservice to truly dedicated law enforcement personnel, and an appalling violation of a man’s civil rights,” said Acting U. S. Attorney Carlton Shier. “Holding law enforcement officials accountable for violations of the public trust we place in them is absolutely critical to making our communities safer.”
Autopsy results presented at trial showed that Trent died from internal bleeding caused by a displaced pelvic fracture, and from blunt force trauma to his head, torso, and extremities.
According to evidence presented at pretrial hearings for Hickman and at an unrelated jury trial of another KRRJ supervisory deputy jailer, Kevin Asher, Hickman and Asher assaulted another pre-trial detainee at the same jail in 2012. On Oct. 19, 2017, Asher was sentenced to 108 months imprisonment for his involvement in that unrelated inmate assault.
The Kentucky River Regional Jail houses pre-trial detainees from Perry and Knott Counties. As a supervisory deputy jailer, Hickman was responsible for the custody, care, safety and control of the inmates at the jail.
Carlton S. Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky; John M. Gore, Acting Assistant Attorney General for the Civil Rights Division; and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement.
The investigation was conducted by the FBI and the Kentucky State Police. Assistant U.S. Attorney Hydee Hawkins of the United States Attorney’s Office and Trial Attorney Sanjay Patel of the Civil Rights Division prosecuted this case on behalf of the federal government.
Department of Justice Supports BJS’s Efforts to Release State Estimates of Crime from the National Crime Victimization SurveyRead the Press Release
The Department of Justice today announced its support of efforts to collect, analyze and report state and local crime data through the National Crime Victimization Survey. The expansion of the NCVS to produce state and local crime estimates is part of a continuing effort to improve crime data collection and it aligns with recommendations from the President’s Crime Data Task Force, which is focused on reducing violent crime.
Maintained by the Justice Department’s Bureau of Justice Statistics, the NCVS has provided national-level estimates of crime since the 1970s. Unlike the law enforcement statistics compiled by the FBI through its Uniform Crime Reporting Program, the NCVS is a household sample survey that provides data on the incidence and prevalence of nonfatal violent and property crime; characteristics of victims, incidents and offenders; the consequences of crime for victims; and the proportion of crime that is not reported to police. Supplemental surveys to the NCVS also provide data on identity theft, stalking, bullying, contact between police and the public and financial fraud.
“The National Crime Victimization Survey is designed to include offenses not reported to police,” said Deputy Attorney General Rod J. Rosenstein. “This expansion of the survey is intended to give researchers, policymakers and the public a deeper understanding of victimization in America.”
Over the past several years, BJS has worked to expand the capacity of the NCVS to assess state and local crime conditions, policing patterns and other criminal justice services. In 2016, the survey sample was redesigned to generate estimates of crime, both reported and unreported, for the largest 22 states. BJS is analyzing the data and will release the first state-level estimates for the 22 largest states in early 2018. With these data, the 22 states, which represent about 80 percent of the US population age 12 or older, will have a more complete picture of the level and nature of crime, both reported and unreported to police.
As the Justice Department launches a series of initiatives to reduce violent crime, including the National Public Safety Partnership, the state-level data will enable comparison of crime rates among states with differing criminal justice policies and programs. It will also permit the assessment of reductions in reported and unreported crime to police over time.
Additional information about the NCVS and BJS’s statistical publications and other programs can be found on the BJS website at www.bjs.gov.
The Office of Justice Programs, headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at www.ojp.gov.
Under Agreement with the Justice Department and Environmental Protection Agency, Exxonmobil to Reduce Harmful Air Pollution at Eight U.S. Chemical PlantsRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Louisiana Department of Environmental Quality (LDEQ) announced a settlement today with Exxon Mobil Corp. and ExxonMobil Oil Corp., (ExxonMobil) that will eliminate thousands of tons of harmful air pollution from eight of Exxon’s petrochemical manufacturing facilities in Texas and Louisiana. The settlement resolves allegations that ExxonMobil violated the Clean Air Act by failing to properly operate and monitor industrial flares at their petrochemical facilities, which resulted in excess emissions of harmful air pollution.
ExxonMobil will spend approximately $300 million to install and operate air pollution control and monitoring technology to reduce harmful air pollution from 26 industrial flares at five ExxonMobil facilities in Texas—located near Baytown, Beaumont, and Mont Belvieu—and three of the company’s facilities in Baton Rouge, Louisiana.Once fully implemented, the pollution controls required by the settlement are estimated to reduce harmful air emissions of volatile organic compounds (VOCs) by more than 7,000 tons per year. The settlement is also expected to reduce toxic air pollutants, including benzene, by more than 1,500 tons per year.
The Louisiana Department of Environmental Quality is also a signatory of today’s settlement, which resolves alleged violations of Louisiana law at ExxonMobil’s three plants in Baton Rouge, Louisiana.
“This settlement will improve air quality in Texas and Louisiana by eliminating thousands of tons of harmful air pollution each year,” said Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division of the Department of Justice. “The agreement, which requires Exxon to reduce emissions from its facilities in Texas and Louisiana, demonstrates the Justice Department’s continuing efforts, alongside EPA and our state partners, to protect the American public from these harmful pollutants by bringing sources of air pollution into compliance with the Clean Air Act.”
“This settlement means cleaner air for communities across Texas and Louisiana, and reinforces EPA’s commitment to enforce the law and hold those who violate it accountable,” said EPA Administrator Scott Pruitt. “As this agreement shows, EPA is dedicated to partnering with states to address critical environmental issues and improving compliance in the regulated community to prevent future violations of the law.”
“LDEQ is always happy to cooperate with our federal partners in investigating environmental violations,” said Dr. Chuck Carr Brown, Secretary of the LDEQ. “This settlement will benefit the entire state of Louisiana, and the Beneficial Environmental Projects included in the settlement will enhance LDEQ’s surveillance and enforcement capabilities.”
These pollutants can cause significant harm to public health. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. Chronic exposure to benzene, which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women.
Flares are devices used to combust waste gases that would otherwise be released into the atmosphere during certain industrial operations. Well-operated flares should have high “combustions efficiency,” meaning they combust nearly all harmful waste gas constituents, like VOCs and hazardous air pollutants, and turning them into water and carbon dioxide. The agreement is designed to improve Exxon’s flaring practices. First, it requires Exxon to minimize the amount of waste gas that is sent to the flares. Second, Exxon must improve the combustion efficiency of its flares.
In order to minimize the waste gas sent to the flares, Exxon will create waste minimization plans for each facility. At four of the facilities, Exxon will operate flare gas recovery systems which minimize the amount of waste gas sent to the flares by recovering and recycling the gases before they are sent for combustion in a flare. The flare gas recovery systems will allow ExxonMobil to reuse these gases as a fuel at its facilities or a product for sale. In order to improve combustion efficiency, ExxonMobil must also install and operate instruments and monitoring systems to ensure that gases that are sent to flares are efficiently combusted. ExxonMobil will perform air quality monitoring that is designed to detect the presence of benzene at the fence lines of four of the covered plants, and pay a civil penalty of $2.5 million.
Today’s settlement also requires ExxonMobil to spend $1 million on a supplemental environmental project to plant trees in the City of Baytown. The trees will provide a natural buffer to reduce airborne pollutants from the chemical plants to nearby communities.
The LDEQ will receive $470,000 of the $2.5 million total civil penalty, and ExxonMobil will perform two state “beneficial environmental projects,” including purchasing a $1.5 million mobile air quality monitoring vehicle for LDEQ’s use.
The consent decree, lodged in the Southern District Court of Texas, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
More information about the settlement: https://www.epa.gov/enforcement/exxon-mobil-corporationexxonmobil-oil-corporation-clean-air-act-settlement.
The Justice Department, Environmental Protection Agency and State of Colorado Reach Agreement with PDC Energy, Inc. to Resolve Litigation and Reduce Air PollutionRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the State of Colorado today announced a settlement with Denver-based PDC Energy, Inc. resolving Clean Air Act violations alleged in a civil complaint. The complaint filed June 26, 2017 alleged that PDC violated requirements to reduce volatile organic compounds (VOC) emissions from its oil and gas exploration and production activities in the Denver area.
This case arose from a series of Colorado inspections that found significant VOC emissions from PDC’s condensate storage tanks. Under the settlement, PDC will spend an estimated $18 million on system upgrades, improved operations and maintenance practices, monitoring, and inspections to reduce emissions. PDC will also be required to implement environmental mitigation projects at certain sites to further reduce VOC and nitrogen oxide (NOx) emissions at a cost of $1.7 million. The settlement includes a $2.5 million civil penalty, which will be split evenly between the United States and the State of Colorado. The state’s share of the penalty may be offset by up to $1 million by performing one or more state-only supplemental environmental projects.
EPA estimates that modifications to the vapor control systems, along with operational and maintenance improvements and increased monitoring, will reduce VOC emissions by more than 1,600 tons per year. PDC already has begun this work, which must be completed on a phased schedule with a deadline of June 30, 2019 for the last phase
“As a result of state and federal efforts, PDC has agreed to take comprehensive action to address excess VOC emissions from its oil and gas operations,” said Associate Attorney General Rachel L. Brand of the Department of Justice. “We are proud that we were able to work side by side with EPA and Colorado to bring these facilities into compliance with the law.”
“This agreement will result in cleaner air in the Denver area and shows that EPA is committed to enforcing the law in order to ensure public health is protected,” said EPA Administrator Scott Pruitt. “This case exemplifies the strong partnerships with states that are integral to delivering results for American communities and finding solutions that build compliance with the law and prevent future violations.”
The settlement covers approximately 650 PDC tank batteries and resolves claims that PDC failed to adequately design, size, operate and maintain vapor control systems on its controlled condensate storage tanks, resulting in VOC emissions. VOC are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. The tank batteries that are subject to today’s settlement are all located in an ozone non-attainment area, meaning that the area does not meet the national air quality standard that EPA set for this pollutant.
As part of the settlement, PDC has agreed to evaluate the design and capacity of its vapor control systems, modify those vapor control systems as necessary to ensure that that they are adequately designed and sized to collect and convey emissions to a control device, implement an enhanced inspection and maintenance program, and undertake periodic infrared camera inspections to identify any emissions and take prompt corrective action to address those emissions. Where monitoring and recordkeeping indicates recurring issues resulting in emissions, PDC will take proactive measures to identify the cause of these issues and prevent their recurrence.
In addition, PDC will implement two environmental mitigation projects to further reduce emissions of ozone precursors from certain PDC well pads in the nonattainment area by an estimated combined 425 tons per year. These efforts are in addition to measures PDC has already taken to reduce emissions from its well pads, such as implementing techniques at all locations equipped with automation capability to sell oil from storage tanks without the need to open thief hatches for sampling or gauging.
The consent decree, lodged in the District Court of Colorado, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
More on this settlement: https://www.epa.gov/enforcement/pdc-energy-inc-clean-air-act-settlement.
National Prescription Drug Take Back Day Collection AmountsRead the Press Release
Acting United States Attorney SHAWN N. ANDERSON, for the Districts of Guam and the Northern Mariana Islands (NMI) together with Drug Enforcement Administration (DEA) Resident Agent in Charge Edward Talbot, would like to thank everyone who participated in the 14th National Prescription Drug Take Back Day which was held this past Saturday, October 28, 2017. Guam collected 452 lbs. of prescription medication and the CNMI collected 44 lbs.
The biannual event was held in Guam, Saipan, Tinian and Rota and was also held at thousands of collection sites around the country. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Contact DEA Special Agent Dave Stubbs at 671-472-7384 regarding any questions about prescription drug abuse and/or any concerns regarding drug related activity on Guam or in the NMI.
For more information, go to www.dea.gov, www.getsmartaboutdrugs.com, or www.justthinktwice.com.
At the Guam site in the Agana Shopping Center – pictured here are Monty McDowell, Chamber of Guam representative, Kirk Williamson, Special Agent with the DEA, and Sgt. Corina Andre with the Guam Army National Guard
Attorney General Jeff Sessions Delivers Statement on the Apprehension of Mustafa Al-Imam for His Role in 2012 Attack in Benghazi, LibyaRead the Press Release
Attorney General Jeff Sessions released the following statement regarding the arrest of Mustafa al-Imam for his role in the September 2012 attack on U.S. facilities in Benghazi, Libya:
“The murder of four Americans in Benghazi on September 11, 2012 was a barbaric crime that shocked the American people. We will never forget those we lost – Tyrone Woods, Sean Smith, Glen Doherty, and Ambassador Christopher Stevens – four brave Americans who gave their lives in service to our nation. We owe it to them and their families to bring their murderers to justice. Today the Department of Justice announces a major step forward in our ongoing investigation as Mustafa al-Imam is now in custody and will face justice in federal court for his role in the attack. I am grateful to the FBI, our partners in the intelligence community, and the Department of Defense who made this apprehension possible. The United States will continue to investigate and identify all those who were involved in the attack – and we will hold them accountable for their crimes.”
Florida Resident Sentenced to Prison for Obstructing the IRS and Stealing Government RefundsRead the Press Release
A Boynton Beach, Florida, resident was sentenced to 30 months in prison today in U.S. District Court for the Southern District of Florida for corruptly endeavoring to obstruct the due administration of the internal revenue laws and theft of government funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, from 2010 to 2015, David R. Andre, 41, filed fraudulent personal tax returns with the Internal Revenue Service (IRS) that sought more than $5.6 million in refunds to which he was not entitled. As a result of these returns, which falsely reported income earned and income tax withheld, the IRS paid Andre more than $485,000 in refunds. He used the funds to purchase his residence and multiple vehicles, including a Jaguar and Mercedes Benz. In late 2012, the IRS began trying to collect the taxes Andre owed and placed a lien on his residence. Days after the lien was recorded, Andre filed a form with the IRS that falsely claimed he was making a substantial payment, and the IRS released the lien. After Andre did not make the payment, the IRS revoked its release and re-filed the lien. In 2015, Andre also made false statements to IRS agents and told them that he purchased his residence with money he inherited, did not recall receiving any large refunds from the IRS, and had not filed a tax return since 2008.
In addition to the term of prison imposed, Senior U.S. District Court Judge Kenneth A. Marra also sentenced Andre to serve three years of supervised release, forfeit $137,582.70 to the United States and pay $485,298.96 in restitution to the IRS. In June, Andre pleaded guilty to corruptly endeavoring to obstruct the due administration of the internal revenue laws and theft of government money.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Daniel McGraw and Charles Edgar, Jr. of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
DEA Joins Local Law Enforcement Partners in Nationwide Take Back of Opioids and Other Prescription DrugsRead the Press Release
The Drug Enforcement Administration will join forces tomorrow with more than 4,000 local, tribal, and community partners at more than 5,000 collection sites to collect potentially dangerous expired, unused, and unwanted prescription drugs. The effort will help prevent these drugs, including opioids, from falling into the wrong hands and contributing to a lethal drug abuse epidemic in the United States.
On Saturday, Oct. 28, 2018, from 10:00 a.m. to 2:00 p.m. local time, individuals can take pills and other solid forms of medication at nearby collection sites (DEA cannot accept liquids, needles or sharps), which can be located at www.DEATakeBack.com or by calling 800-882-9539. The service is free and anonymous, no questions asked.
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.
“Today the United States is facing the worst drug crisis in our history, as more Americans are dying from drug overdoses than ever before,” said Attorney General Jeff Sessions. “We lose one American life to drugs every nine minutes. This crisis affects every American, as it is filling up our emergency rooms, our foster homes, and our cemeteries.
“President Trump is right to make this issue a top priority for his administration, and his plan will make a difference for millions of Americans. It will help those suffering from addiction get the treatment they need and prevent many new addictions from starting in the first place. I commend him for recognizing the public health emergency that this is.”
“This Department of Justice is committed to doing its part to turn the tide. This year we have conducted the largest opioid-related health care fraud takedown in American history, charging some 120 defendants with opioid-related crimes. Since then I have taken additional steps to stop opioid-related fraud, creating a new data analytics team that can find evidence of overprescribing, and appointing 12 prosecutors to focus solely on this issue. I firmly believe that these steps will prevent drug abuse and addiction and save American lives.
“We will continue to do our part in this effort, prosecuting drug traffickers and those who exploit vulnerable people suffering from addiction, so that every American can be safe and live out their God-given potential."
On Oct. 17, the Justice Department announced the indictments of two Chinese nationals and their North American based traffickers and distributors for separate conspiracies to distribute large quantities of fentanyl and fentanyl analogues and other opiate substances in the United States. In July, the department announced the seizure of the largest criminal marketplace on the Internet, AlphaBay, which operated for over two years on the dark web and was used to sell deadly illegal drugs, including synthetic opioids like fentanyl, throughout the world. The international operation was led by the United States and involved cooperation with law enforcement authorities around the world.
In addition, DEA this week announced the formation of six new heroin enforcement teams in hard hit areas such as West Virginia, Ohio, North Carolina, New York and Massachusetts.
The Take-Back initiative by the DEA 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.
“Disposing of leftover painkillers or other addictive medicines in the house is one of the best ways to prevent a member of your family from becoming a victim of the opioid epidemic,” said DEA Acting Administrator Robert W. Patterson. “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 largest rate of overdose deaths this country has ever seen.”
Last April the public turned in 450 tons (900,000 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 13 previous Take Back events, DEA and its partners have taken in over 8.1 million pounds—more than 4,050 tons—of pills.U.s. Attorney’s Office and DEA Announce National Prescription Drug Take Back Day Collection SitesRead the Press Release
CHARLESTON, W.Va. – The United States Attorney’s Office for the Southern District of West Virginia and the Drug Enforcement Administration’s Charleston Regional Office announced today the location of collection sites for the Drug Enforcement Administration’s National Prescription Drug Take Back Day. The event provides safe venues for West Virginians to responsibly dispose of prescription drugs. National Prescription Drug Take Back Day is on Saturday, October 28, 2017, from 10:00 a.m. until 2:00 p.m. Anyone can properly dispose of prescription medication by visiting one of several conveniently located collection sites throughout West Virginia.
“People often ask what they can do to help the fight against the opioid epidemic, and Prescription Drug Take Back Day provides one of the most effective ways to keep dangerous opiate painkillers off the streets,” stated United States Attorney Carol Casto. “Take the time to become part of the solution - go through your medicine cabinets or wherever your prescriptions are kept and use this program to safely dispose of unused and expired medication. A few minutes taking part in this initiative can make a significant difference in cutting off the supply of opioids and combating the drug crisis.”
“The National Take Back Day is an opportunity for the community to empty their medicine cabinets of unwanted or unused medications,” stated Assistant Special Agent in Charge David Gourley of the Drug Enforcement Administration’s Charleston District Office. “We are seeing a lot of medication being diverted from legitimate use to illicit use. This is one of the reasons that is driving the drug problems we see today.”
Nearby collection sites can be found by visiting www.dea.gov, clicking on the “Take-Back Site Locations” icon, and searching by zip code, county, city, and state. Another option for locating collection sites is to call 800-882-9539. West Virginians have the option of visiting nearly 100 sites throughout the state to dispose of prescription drugs. Only pills and other solids, such as patches, can be brought to collection sites – liquids, needles, or other sharps will not be accepted.
Relocation of Premerger and Division Statistics Unit, Antitrust DivisionRead the Press Release
The Antitrust Division’s Premerger and Division Statistics Unit is relocating to the Liberty Square Building, 450 Fifth Street, N.W., on Monday, November 27, 2017. The Premerger and Division Statistics Unit accepts and processes Hart-Scott-Rodino Premerger & Report Forms for the Antitrust Division.
As of Monday, November 27, 2017, the mailing address for the Premerger and Division Statistics Unit is:
Department of Justice
Antitrust Division
Premerger and Division Statistics Unit
450 Fifth Street, N.W.
Suite 1100
Washington, DC 20530-0001Hand deliveries will be processed through security stationed at the loading dock entrance on Sixth Street, between D Street and E Street.
Hart-Scott-Rodino Premerger Notification & Report Forms and other materials will continue to be accepted at the Main Justice Building, 950 Pennsylvania Avenue, N.W., until 5:00 p.m. Friday, November 24.
All telephone numbers and email addresses for the Premerger and Division Statistics Unit will remain the same. For further information, please call (202) 514-2558.
Pittsburgh-Area Doctor Charged with Unlawfully Distributing OpioidsRead the Press Release
A suburban Pittsburgh physician has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and unlawfully distributing controlled substances, Acting United States Attorney Soo C. Song announced today. The indictment of Andrzej Kazimierz Zielke, 62, is the first since Attorney General Jeff Sessions announced the formation of the Opioid and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis.
“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions. “An unprecedented crisis like this one demands an unprecedented response—and that’s why President Trump has made this a top priority for this administration," Sessions said. "This summer, I designated a dozen of our top federal prosecutors to focus solely on the problem of opioid-related health care fraud in places where the epidemic was at its worst--including Western Pennsylvania. These cases take on the supply of drugs and stop fraudsters from exploiting people suffering from addiction. Today, as President Trump unveils his plan to fight the opioid epidemic, we have filed the first charges by these prosecutors. We will file many more charges in the months to come—because the Department of Justice will be relentless in hunting down drug dealers and turning the tide of this epidemic.”
“Western Pennsylvania is experiencing some of the highest rates of overdose deaths in the nation,” added Acting U.S. Attorney Song. “In response, we in law enforcement aggressively target drug traffickers – both those who distribute on the street, and those who traffic under the guise of physicians writing excessive prescriptions.”
“Opioid-related health care fraud is a serious problem facing the Western Pennsylvania area today,” said FBI Special Agent in Charge Robert Johnson. “Doctors who betray their trust and authority for their own financial gain by prescribing Schedule II narcotics for purposes other than medical reasons are contributing to our nation’s opioid crisis. This indictment is indicative of the FBI’s intent to employ substantial resources to combat this national epidemic. The FBI Pittsburgh Division will continue to work with our law enforcement partners in a unified effort to address the local effects of this national trend.”
According to the 14-count indictment that was returned on October 24, Zielke is a medical doctor who owned and operated Medical Frontiers, which advertised as a holistic pain management practice, located in Gibsonia, Pennsylvania. The indictment alleges that on 13 occasions Zielke prescribed Schedule II narcotics - Oxycodone, hydrocodone, morphine sulfate and methadone – outside the usual course of professional practice and not for legitimate medical purpose. The indictment also alleges that Zielke conspired with others to distribute Schedule II narcotics. On October 5, Zielke was arrested on a criminal complaint. The complaint alleges that Dr. Zielke engaged in a pattern of illegally prescribing opioid painkillers to patients with no legitimate medical purpose and without examination, evaluation or testing.
According to the criminal complaint:
Agents began investigating his practice based on information they received that Dr. Zielke was writing a large number of oxycodone prescriptions for people residing in the McKeesport, Pennsylvania area, and that some of these pills were being obtained by a narcotics dealer.
According to accounts of former employees and patients, Dr. Zielke charged approximately $250 cash for office visits and many of his patients traveled long distances to see him.
On October 11, 2017, the Pennsylvania State Board of Medicine issued a Temporary Suspension of Dr. Zielke’s license to practice medicine and surgery.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1 million, or both, for each count of the indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Office of Attorney General, the U.S. Department of Health and Human Services, Office of Inspector General, United States Postal Inspection Service, the Internal Revenue Service – Criminal Investigations, the Food and Drug Administration, and the Pennsylvania Department of State, Bureau of Enforcement and Investigation, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.Maine Fisherman Sentenced for Illegally Trafficking American EelsRead the Press Release
Richard D. Austin was sentenced to 24 months’ imprisonment yesterday 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 for the Eastern District of Virginia, Dana J. Boente.
In April 2017, Austin, who has several previous wildlife-related convictions, pleaded guilty to violating the Lacey Act by selling elvers in interstate commerce that he had harvested illegally in Virginia and Massachusetts. Court documents indicate that Austin trafficked at least 147 pounds of elvers, which is approximately 300,000 individual eels, and worth more than $162,000. Austin sold these eels to exporters, who then exported them from the United States to international markets.
“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.”
"Today's sentencing sends a strong message to those who choose to exploit and illegally traffic our native wildlife," said U.S. Fish and Wildlife Service Acting Chief of Law Enforcement, Ed Grace. "We appreciate the dedication of the Department of Justice, and our partners involved in this case, and will continue to work with federal, state, and local conservation law enforcement officials to combat the illegal wildlife trade."
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.
Lloyd Aguon Sentenced to Prison in Firearm CaseRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant LLOYD JOHN AGUON, age 41, from Umatac, Guam, was sentenced on October 25, 2017 in District Court to a 18-month term of imprisonment with credit for time served, to be followed by 3 years of supervised release, and 50 hours of community service, for being a Felon in Possession of Firearms and Ammunition. The Court also ordered Defendant LLOYD JOHN AGUON to pay a mandatory $100 assessment fee.
On April 19, 2017, Defendant LLOYD JOHN AGUON entered a guilty plea to Count 1 of an Indictment, charging him with being a Felon In Possession of Firearms and Ammunition, in violation of Title 18, United States Code § 922(g)(1). Defendant had been previously convicted in the Superior Court of Guam for Family Violence (As a Third Degree Felony and Terrorizing (As a Third Degree Felony). It is unlawful for individuals previously convicted of a crime punishable by imprisonment for a term exceeding one year to possess any firearm or ammunition, which has been transported in interstate or foreign commerce. Upon assisting a team of Guam Marshals and Guam Probation with a local arrest warrant for Defendant LLOYD JOHN AGUON in September 2015, the Federal Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) investigation discovered two 12 Gauge Shotguns and 14 rounds of ammunition. ATF’s further investigation revealed that one of the firearms, a 12 Gauge Remington Shot Gun, had been previously reported stolen to the Guam Police Department.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case was prosecuted by Belinda Alcantara, Assistant United States Attorney for the District of Guam.
Founder and Owner of Pharmaceutical Company Insys Arrested and Charged with RacketeeringRead the Press Release
The founder and majority owner of Insys Therapeutics Inc., was arrested today and charged with leading a nationwide conspiracy to profit by using bribes and fraud to cause the illegal distribution of a Fentanyl spray intended for cancer patients experiencing breakthrough pain.
"More than 20,000 Americans died of synthetic opioid overdoses last year, and millions are addicted to opioids. And yet some medical professionals would rather take advantage of the addicts than try to help them," said Attorney General Jeff Sessions. "This Justice Department will not tolerate this. We will hold accountable anyone – from street dealers to corporate executives -- who illegally contributes to this nationwide epidemic. And under the leadership of President Trump, we are fully committed to defeating this threat to the American people.”
John N. Kapoor, 74, of Phoenix, Ariz., a current member of the Board of Directors of Insys, was arrested this morning in Arizona and charged with RICO conspiracy, as well as other felonies, including conspiracy to commit mail and wire fraud and conspiracy to violate the Anti-Kickback Law. Kapoor, the former Executive Chairman of the Board and CEO of Insys, will appear in federal court in Phoenix today. He will appear in U.S. District Court in Boston at a later date.
The superseding indictment, unsealed today in Boston, also includes additional allegations against several former Insys executives and managers who were initially indicted in December 2016.
The superseding indictment charges that Kapoor; Michael L. Babich, 40, of Scottsdale, Ariz., former CEO and President of the company; Alec Burlakoff, 42, of Charlotte, N.C., former Vice President of Sales; Richard M. Simon, 46, of Seal Beach, Calif., former National Director of Sales; former Regional Sales Directors Sunrise Lee, 36, of Bryant City, Mich., and Joseph A. Rowan, 43, of Panama City, Fla.; and former Vice President of Managed Markets, Michael J. Gurry, 53, of Scottsdale, Ariz., conspired to bribe practitioners in various states, many of whom operated pain clinics, in order to get them to prescribe a fentanyl-based pain medication. The medication, called “Subsys,” is a powerful narcotic intended to treat cancer patients suffering intense breakthrough pain. In exchange for bribes and kickbacks, the practitioners wrote large numbers of prescriptions for the patients, most of whom were not diagnosed with cancer.
The indictment also alleges that Kapoor and the six former executives conspired to mislead and defraud health insurance providers who were reluctant to approve payment for the drug when it was prescribed for non-cancer patients. They achieved this goal by setting up the “reimbursement unit,” which was dedicated to obtaining prior authorization directly from insurers and pharmacy benefit managers.
“In the midst of a nationwide opioid epidemic that has reached crisis proportions, Mr. Kapoor and his company stand accused of bribing doctors to overprescribe a potent opioid and committing fraud on insurance companies solely for profit,” said Acting United States Attorney William D. Weinreb. “Today's arrest and charges reflect our ongoing efforts to attack the opioid crisis from all angles. We must hold the industry and its leadership accountable - just as we would the cartels or a street-level drug dealer.”
“As alleged, these executives created a corporate culture at Insys that utilized deception and bribery as an acceptable business practice, deceiving patients, and conspiring with doctors and insurers,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The allegations of selling a highly addictive opioid cancer pain drug to patients who did not have cancer, make them no better than street-level drug dealers. Today's charges mark an important step in holding pharmaceutical executives responsible for their part in the opioid crisis. The FBI will vigorously investigate corrupt organizations with business practices that promote fraud with a total disregard for patient safety.”
“These Insys executives allegedly fueled the opioid epidemic by paying doctors to needlessly prescribe an extremely dangerous and addictive form of fentanyl,” said Phillip Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Corporate executives intent on illegally driving up profits need to be aware they are now squarely in the sights of law enforcement.”
“As alleged, Insys executives improperly influenced health care providers to prescribe a powerful opioid for patients who did not need it, and without complying with FDA requirements, thus putting patients at risk and contributing to the current opioid crisis,” said Mark A. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “Our office will continue to work with our law enforcement partners to pursue and bring to justice those who threaten the public health.”
“Pharmaceutical companies whose products include controlled medications that can lead to addiction and overdose have a special obligation to operate in a trustworthy, transparent manner, because their customers’ health and safety and, indeed, very lives depend on it,” said DEA Special Agent in Charge Michael J. Ferguson. “DEA pledges to work with our law enforcement and regulatory partners nationwide to ensure that rules and regulations under the Controlled Substances Act are followed.”
“Today’s arrest is the result of a joint effort to identify, investigate and prosecute individuals who engage in fraudulent activity and endanger patient health,” stated Special Agent in Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS) Northeast Field Office. “DCIS will continue to work with the U.S. Attorney’s Office, District of Massachusetts, and our law enforcement partners, to protect U.S. military members, retirees and their dependents and the integrity of TRICARE, the Defense Department’s healthcare system.”
“As alleged, John Kapoor and other top executives committed fraud, placing profit before patient safety, to sell a highly potent and addictive opioid. EBSA will take every opportunity to work collaboratively with our law enforcement partners in these important investigations to protect participants in private sector health plans and contribute in fighting the opioid epidemic,” said Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office.
“Once again, the United States Postal Inspection Service is fully committed to protecting our nation’s mail system from criminal misuse,” said Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service. “We are proud to work alongside our law enforcement partners to dismantle high level prescription drug practices which directly contribute to the opioid abuse epidemic. This investigation highlights our commitment to defending our mail system from illegal misuse and ensuring public trust in the mail.”
“The U.S. Department of Veterans Affairs, Office of Inspector General will continue to aggressively investigate those that attempt to fraudulently impact programs designed to benefit our veterans and their families,” said Donna L. Neves, Special Agent in Charge of the VA OIG Northeast Field Office.
The charges of conspiracy to commit RICO and conspiracy to commit mail and wire fraud each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the amount of pecuniary gain or loss. The charges of conspiracy to violate the Anti-Kickback Law provide for a sentence of no greater than five years in prison, three years of supervised release and a $25,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by a team that included the FBI; HHS-OIG; FDA Office of Criminal Investigations; the Defense Criminal Investigative Service; the Drug Enforcement Administration; the Department of Labor, Employee Benefits Security Administration; the Office of Personnel Management; the U.S. Postal Inspection Service; the U.S. Postal Service Office of Inspector General; and the Department of Veterans Affairs. The U.S. Attorney’s Office would like to acknowledge the cooperation and assistance of the U.S. Attorney’s Offices around the country engaged in parallel investigations, including the District of Connecticut, Eastern District of Michigan, Southern District of Alabama, Southern District of New York, District of Rhode Island, and the District of New Hampshire. The efforts of the Central District of California and the Justice Department’s Civil Fraud Section of the Department of Justice are also greatly appreciated.
Assistant U.S. Attorneys K. Nathaniel Yeager, Chief of Weinreb’s Health Care Fraud Unit, and Susan M. Poswistilo, of Weinreb’s Civil Division, are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.Federal Grand Jury Indicts Pomona Police Officer on Civil Rights Offense for Allegedly Assaulting Minor at L.A. County FairRead the Press Release
Three officers with the Pomona Police Department (PPD) surrendered this morning to face federal charges that allege one officer violated the civil rights of a minor who was beaten at the Los Angeles County Fair two years ago, and that all three took illegal steps to justify and cover-up the attack.
PPD Corporal Chad Kenneth Jensen is charged with deprivation of rights under color of law for allegedly beating the minor victim on September 16, 2015. The indictment alleges that Jensen violated the victim’s constitutional rights, which includes the right to be free from the use of unreasonable and unnecessary force, and that the assault resulted in bodily injury.
Jensen and his partner–PPD Officer Prince Taylor Hutchinson–are charged with preparing false reports that attempted to justify the use of force. The indictment alleges that, in a report prepared soon after the incident, Jensen falsely wrote that the minor victim attempted to punch Jensen’s face, and that the minor victim came within arm’s reach of another officer who was escorting an individual who had been placed under arrest. Hutchinson similarly is accused of writing a report that falsely stated the victim had come within two to three feet of the officer who was escorting an individual who had been placed under arrest, and that the victim had attempted to incite unrest among at the crowd at the Fair as Hutchinson escorted the minor victim to a holding facility at the Fair.
Jensen and Hutchinson are further charged with obstruction of justice for giving false testimony during state court proceedings regarding criminal charges against the victim. Both Jensen and Hutchinson gave false testimony similar to that in their reports and created the false impression that the minor posed a physical threat to other officers before Jensen assaulted him.
The third defendant in the case–PPD Sergeant Michael Timothy Neaderbaomer, who was assigned to the PPD’s Internal Affairs Unit–is charged with obstruction of justice for making false statements to the victim’s family designed to dissuade them from reporting the incident to law enforcement. According to the indictment, Neaderbaomer “attempted to intimidate and corruptly persuade” the victim and his parents by falsely claiming that the PPD had a video showing the victim punching Jenson and by telling the victim’s mother that the parents would not be allowed to attend PPD’s interview of the victim in relation to the citizen’s complaint, in violation of PPD policy.
Neaderbaomer is also charged with making false statements to FBI agents who were investigating the alleged civil rights violation by Jensen.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted, the charges of excessive force carry a maximum penalty of 10 years in prison, the charges of witness tampering and falsifying records carry a maximum penalty of 20 years in prison, and the charges of false statements to federal agents carry a maximum penalty of five years in prison.
The case against the police officers is being prosecuted by Assistant United States Attorney Thomas Stout of the Public Corruption and Civil Rights Section and by Justice Department Trial Attorney Donald Tunnage of the Civil Rights Division.
Attorney General Jeff Sessions Announces Department of Justice has Settled with Plaintiff Groups Improperly Targeted by IRSRead the Press Release
Attorney General Jeff Sessions announced today that the Department of Justice has entered into settlements, pending approval by the district courts, in two cases brought by groups whose tax-exempt status was significantly delayed by the Internal Revenue Service based on inappropriate criteria. The first case, Linchpins of Liberty v. United States, comprised claims brought by 41 plaintiffs, and the second case, NorCal Tea Party Patriots v. Internal Revenue Service, was a class action suit that included 428 members. Attorney General Sessions released the following statement about the cases:
“Chief Justice John Marshall wrote 'that the power to tax involves the power to destroy … [is] not to be denied.' And it should also be without question that our First Amendment prohibits the federal government from treating groups differently based solely on their viewpoint or ideology.”
"But it is now clear that during the last Administration, the IRS began using inappropriate criteria to screen applications for 501(c) status. These criteria included names such as “Tea Party,” “Patriots,” or “9/12” or policy positions concerning government spending or taxes, education of the public to “make America a better place to live,” or statements criticizing how the country was being run. It is also clear these criteria disproportionately impacted conservative groups.”
“As a result of these criteria, the IRS transferred hundreds of applications to a specifically designated group of IRS agents for additional levels of review, questioning and delay. In many instances, the IRS then requested highly sensitive information from applicants, such as donor information, that was not needed to make a determination of tax-exempt status.”
"The IRS’s use of these criteria as a basis for heightened scrutiny was wrong and should never have occurred. It is improper for the IRS to single out groups for different treatment based on their names or ideological positions. Any entitlement to tax exemption should be based on the activities of the organization and whether they fulfill requirements of the law, not the policy positions adopted by members or the name chosen to reflect those views.”
“There is no excuse for this conduct. Hundreds of organizations were affected by these actions, and they deserve an apology from the IRS. We hope that today’s settlement makes clear that this abuse of power will not be tolerated.”[Linchpins of Liberty, et al., v. United States of America, et al., No. 1:13-cv-00777-RBW in the United States District Court for the District of Columbia]
[NorCal Tea Party Patriots v. Internal Revenue Service, et al., No. 1:13-cv-00341 in the United States District Court for the Southern District of Ohio]
Real Estate Investor Agrees to Plead Guilty to Bid Rigging at Public Foreclosure Auctions in Northern CaliforniaRead the Press Release
A real estate investor pleaded guilty for his role in a conspiracy to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Abraham S. Farag, who was charged in an indictment returned by a federal grand jury in the U.S. District Court for the Northern District of California on October 22, 2014, pleaded guilty to one count of bid rigging.
According to court documents, Farag participated in a conspiracy to rig bids by agreeing to refrain from bidding against other co-conspirators at public real estate foreclosure auctions in San Mateo County. The conspiracy began no later than August 2008 and continued until January 2011.
The primary purpose of the conspiracy was to suppress competition in order to obtain selected properties offered at San Mateo County public foreclosure auctions at noncompetitive prices.
Today’s guilty plea is the result of the Department’s ongoing investigation into bid rigging at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, California. To date, 74 individuals have pleaded guilty or been convicted at trial.
These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Former Mississippi Sheriff’s Deputy Indicted for Planting Evidence at Crime Scene to Justify Fatal ShootingRead the Press Release
In an indictment unsealed today, a former Mississippi sheriff’s deputy was charged with planting a weapon at a crime scene to justify a fatal shooting. The indictment charged Walter Grant, 51, with placing a stick or baton near the body of Willie Bingham Jr. after shooting him, in order to mislead investigators into believing that Bingham had possessed a weapon prior to the shooting.
At the time of the incident, Grant was a sheriff’s deputy in Bolivar County, Mississippi. He has since retired. Grant was tried twice in state court for manslaughter; the jury was twice unable to reach a verdict.
If convicted of the federal charge, Grant faces a maximum punishment of 20 years in prison. An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Jackson Division of the Federal Bureau of Investigation, with the cooperation of the Mississippi Attorney General’s Office. It is being prosecuted by Assistant United States Attorney Robert Mims of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
DEA Prepares for Prescription Drug Take Back DayRead the Press Release
Acting United States Attorney SHAWN N. ANDERSON, for the Districts of Guam and the Northern Mariana Islands (NMI), will join the Drug Enforcement Administration (DEA) on October 28th for its 14th National Prescription Drug Take Back Day. The biannual event will be held from 10:00 a.m. to 2:00 p.m., at thousands of collection sites around the country, including here in Guam and the NMI. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Last April Americans turned in 450 tons (900,000 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 13 previous Take Back events, DEA and its partners have taken in over 8.1 million pounds—more than 4,050 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.)
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. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
The following sites in Guam and in the NMI are designated to receive unused prescription drugs so please stop by on Saturday, October 28, 2017, between 10:00 AM to 2:00 PM at the:
- Agana Shopping Center (Across Vitamin World)
- Andersen Air Force Base Exchange (Inside Entrance)
- Naval Base Guam (Navy Exchange Food Court)
- Saipan Commonwealth Health Center (in front of the pharmacy)
- Rota Health Center
- Tinian Health Center
Contact DEA Special Agent Dave Stubbs at 671-472-7384 regarding any questions about prescription drug abuse and/or any concerns regarding drug related activity on Guam or in the NMI.
For more information, go to www.dea.gov, www.getsmartaboutdrugs.com, or www.justthinktwice.com.
Two New York Residents Plead Guilty in Separate Stolen Identity Refund Fraud SchemesRead the Press Release
Two Queens, New York, residents pleaded guilty today for their roles in separate stolen identity refund fraud schemes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
Kishore Jattan, 44, pleaded guilty to identity theft. According to the plea agreement and documents filed with the court, from April 2012 through June 2012, Jattan stole student IDs from packages he delivered for a university located in New York and sold the stolen IDs to other individuals who used the IDs to file fraudulent tax returns with the Internal Revenue Service (IRS). Jattan admitted that he caused a tax loss of between $250,000 and $550,000.
Sentencing is scheduled for March 21, 2018 before U.S. District Court Judge Edward R. Korman. Jattan faces a statutory maximum sentence of 15 years in prison. He also faces a period of supervised release, restitution, and monetary penalties.
In a separate scheme, Michael Bratton, 51, pleaded guilty to conspiring to defraud the United States. According to the plea agreement and documents filed with the court, from January 2011 through June 2012, Bratton purchased stolen IDs, which he provided to a co-conspirator for the purpose of filing fraudulent tax returns with the IRS. Bratton admitted to causing a tax loss of more than $40,000.
Sentencing is scheduled for March 21, 2018 before U.S. District Court Judge Edward R. Korman. Bratton faces a statutory maximum sentence of five years for conspiring to defraud the United States. He also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Stuart M. Goldberg thanked special agents of IRS Criminal Investigation and the U.S. Postal Inspection Service, who conducted the investigations, and Trial Attorneys Mark Kotila and Ann M. Cherry of the Tax Division, who are prosecuting these cases.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Justice Department Files Statement of Interest in California Campus Speech CaseRead the Press Release
The Department of Justice today filed a Statement of Interest in Shaw v. Burke at the request of the Department of Education. The plaintiff, Kevin Shaw, is a student at Los Angeles Pierce College, a public college within the Los Angeles Community College District. He is challenging the constitutionality of a Pierce College policy that effectively bans all free expression on campus outside a 616 square-foot “Free Speech Area.”
In order to use the Free Speech Area—which comprises approximately .003% of the campus—students must obtain prior authorization from campus officials by submitting a permit application. The College also maintains unpublished rules governing free speech, which students are not made aware of until they obtain a permit application.
Mr. Shaw claims that Pierce College administrators prohibited him from distributing Spanish-language copies of the United States Constitution outside the Free Speech Area.
The Justice Department primarily argues that the plaintiff’s allegations have adequately pleaded violations of his First Amendment. The Justice Department argues that the college’s speech policies amounted to an unconstitutional prior restraint that chilled free expression, and that they did not constitute valid time, place, and manner restrictions.
This is the second Statement of Interest filed by the Department of Justice in a First Amendment case under Attorney General Jeff Sessions. The first was filed on Tuesday, September 26, 2017 in Uzuegbunam v. Preczewski.
In filing the Statement of Interest, Attorney General Jeff Sessions provided the following statement:
“University officials and faculty must defend free expression boldly and unequivocally. Last month, I promised a recommitment to free speech on campus and to ensuring First Amendment rights. The Justice Department continues to do its part in defending free speech, protecting students’ free expression, and enforcing federal law.”
Head of Wildlife Smuggling Ring Pleads Guilty to Smuggling Carvings Made from Ivory, Rhino Horn and CoralRead the Press Release
Guan Zong Chen (“Graham Chen”), an Australian citizen, pleaded guilty today in federal court in Boston, Massachusetts, on charges that he led a conspiracy to illegally export (smuggle) $700,000 worth of endangered and protected wildlife items made from rhinoceros horn, elephant ivory and coral from the United States to China.
The guilty plea was announced today by Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney William D. Weinreb of the District of Massachusetts.
“This successful case is the latest in a long series of criminal prosecutions against those who profit from illegal trade in protected wildlife,” said Acting Assistant Attorney General Wood. “We greatly appreciate the support and assistance of our federal and international law enforcement partners in this case. Together, we will continue to hunt down those who engage in these smuggling activities.”
“This defendant openly flouted U.S. and international law designed to protect wildlife,” said Acting U.S. Attorney Weinreb. “Falsely labeling shipments and willfully failing to declare them and obtain required permits are serious crimes that will be fully investigated and prosecuted.”
“Smuggling items made from protected animals fuels illegal trade in endangered wildlife, leaving these treasured species susceptible to extinction,” said Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service Ed Grace. “Our special agents are to be credited for helping expose the complex international schemes abundant in this and many other investigations. Every day, our agents demonstrate their commitment to the American people and communities around the globe by pursuing criminals who would profit from our collective wild legacy.”
Chen pleaded guilty to one count of conspiracy to export protected wildlife contrary to law from the U.S. and knowingly making and submitting false wildlife documents that were exported; one count of false wildlife records; and six counts of smuggling – exporting protected wildlife without declaration and required permits.
Chen, who owned an antiques business in China, was previously arrested in Chengdu, China, and convicted in 2009 of trafficking ivory carvings that had been purchased in the United States. Unable to travel outside of China due to his conviction, Chen continued to traffic wildlife by procuring the help of others to smuggle wildlife merchandise to China that he purchased at U.S. auction houses located in California, Florida, Ohio, Pennsylvania, New York and Texas.
Chen was aided by Jin Jie Yang, a Chinese national, and Carla Marsh, who owned a shipping business in Concord, Mass. Yang traveled to the United States at Chen’s expense and purchased and picked up wildlife items at U.S. auction houses. He shipped or brought the wildlife to Marsh in Concord where she re-packed and mailed the items to Hong Kong with documents that falsely stated the contents and value and without required declarations and permits. Once the packages arrived in Hong Kong, other members of the conspiracy picked up the packages and brought them to Mainland China.
In 2014, after serving his sentence in China, Chen traveled to the United States and visited Marsh in Concord, Massachusetts. During the visit, Chen instructed that a sculpture made from elephant ivory be mailed to him in Hong Kong. It was falsely declared as wood and worth only $50. The conspiracy also involved the purchase and smuggling of a rhinoceros horn libation cup from a New York auction house that was packed inside a porcelain vase and exported without required declaration or permits. Chen also admitted as part of the guilty plea that he had twice purchased raw rhinoceros horns from an individual associated with an auction house in Beverly Hills, California.
Both Yang and Marsh faced federal charges in U.S. District Court in Boston. In December 2014, Yang pleaded guilty to his role in the conspiracy and was sentenced in May 2015 to time-served. Marsh pleaded guilty in May 2015 and was sentenced to one year of probation in April 2016.
Chen was arrested last year when he traveled from China to Australia and extradited to the United States in July. In announcing the case today, Acting Assistant Attorney General Wood and Acting U.S. Attorney Weinreb expressed their appreciation to the Australian Federal Police and the Australian Attorney-General’s Department for their help in apprehending Chen and extraditing him to the United States.
Trade in rhinoceros horn, elephant ivory and coral have been regulated since 1976 under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 175 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. Animals listed under CITES cannot be exported from the United States without prior notification to, and approval from, the U.S. Fish & Wildlife Service.
Chen was apprehended as part of Operation Crash, an ongoing effort by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice to detect, deter, and prosecute those engaged in the illegal killing of and trafficking in protected species including rhinoceros and elephants.
The guilty plea took place before U.S. District Court Judge Rya W. Zobel in Boston. Sentencing will take place on for Dec. 13, 2017. The maximum sentence for conspiracy and violation of the Lacey Act is five years imprisonment and a fine of up to $250,000 or half the gross gain of the offense per count. Smuggling carries a maximum sentence of 10 years in prison and a fine of up to $250,000 or half the gross gain of the offense per count.
The investigation is continuing and is being handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement and the Justice Department’s Environmental Crimes Section, with assistance from the U.S. Attorney’s Office for the District of Massachusetts. Assistance with the extradition was provided by the Department of Justice’s Office of International Affairs and the U.S. Marshals Service in the District of Massachusetts. The government is represented by Senior Litigation Counsel Richard A. Udell and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
Renewable Fuel Trader Pleads Guilty to ConspiracyRead the Press Release
The owner of a company that buys and sells renewable fuel and fuel credits pleaded guilty in U.S. District Court for the Southern District of Ohio to conspiracy for his role in a scheme that generated over $47 million in fraudulent EPA renewable fuels credits, and over $12 million in fraudulent tax credits connected to the purported production of renewable fuel.
The plea entered by the defendant, Gregory Schnabel, before U.S. Magistrate Judge Norah King was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division; U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio; Special Agent in Charge Ryan L. Korner of the Internal Revenue Service (IRS) Criminal Investigation; Acting Special Agent in Charge John K. Gauthier, of the Environmental Protection Agency (EPA), criminal enforcement program in Ohio; and the Special Agent in Charge W. Jay Abbott of the Federal Bureau of Investigation’s Indianapolis Division.
“The defendant helped orchestrate a massive scheme to defraud the U.S. government, American taxpayers and his company’s competitors,” said EPA Administrator Scott Pruitt. “This case shows that EPA and its law enforcement partners are serious about ensuring a level playing field for businesses that follow the law and punishing those who break the rules in the name of personal gain.”
“The Department of Justice vigorously prosecutes those who defraud the federal government through unlawful RFS schemes like the one at issue in this case,” said Acting Assistant Attorney General Wood. “We applaud the work of the DOJ and EPA law enforcement team that sought and obtained justice in this case.”
“This case is another example that environmental programs are not immune from fraud,” U.S. Attorney Glassman said. “We will continue to catch and hold accountable those who attempt to defraud government programs of any sort.”
“Today’s charges send a strong message that there are serious consequences for activity that defrauds the economy and taxpayers,” said Special Agent in Charge Abbott. “I commend the excellent cooperation between the prosecutors, agents and other investigators who worked tirelessly to uncover this fraudulent scheme and expose the perpetrators who were manipulating the system for their own gains.”
“Gregory Schnabel pleaded guilty to participating in a conspiracy relative to a massive fraudulent fuel tax credit scheme for which he has agreed to pay over $13 million in restitution to the IRS,” said Special Agent in Charge Korner. “These tax credits were created in support of the production of various renewable fuels and fuel mixtures, they were not created to be a slush fund for thieves and fraudsters.”
According to his plea, Schnabel, owner of GRC Fuels of Oneonta, New York, engaged in a scheme with other co-conspirators to fraudulently claim EPA renewable fuels credits (also known as “RIN” credits) and tax credits on fuel that did not qualify for the credits, on fuel that had already been used to generate credits, and on fuel that was exported or otherwise used contrary to EPA and IRS regulations.
Schnabel bought and sold fuel from several individuals who have already pleaded guilty for their roles in the scheme, including:
- Fed Witmer and Gary Jury, formerly of Triton Energy, who pleaded guilty in the Northern District of Indiana to conspiracy, fraud, and false statements;
- Malek Jalal, formerly of Unity Fuels, who pleaded guilty in the Southern District of Ohio to conspiracy and obstruction of justice; and
- Dean Daniels, William Bradley, Ricky Smith, and Brenda Daniels, of New Energy Fuels and Chieftain Biofuels, who pleaded guilty in the Southern District of Ohio to conspiracy.
This case is being prosecuted by Assistant U.S. Attorney J. Michael Marous for the Southern District of Ohio, and Trial Attorney Adam Cullman and Senior Trial Attorney Jeremy Korzenik of the Environment and Natural Resources Division. The prosecution is the result of an investigation by the IRS, EPA-CID, and the FBI.
Florida Federal Court Permanently Shuts Down Tax Return PreparersRead the Press Release
A federal court in West Palm Beach, Florida, has permanently barred defendants Fred Pickett Jr., Jalisa Steele, and Fred Pickett III, as well as Five Star Tax Agency LLC, Five Star Financial Services Inc., and Millenium Tax Professionals Inc. from owning, operating, or franchising a tax return preparation business and preparing tax returns for others. The defendants consented to the order, which also requires them to provide the government with a list identifying their tax preparation customers.
According to the complaint, Pickett Jr., with the assistance of Steele and Pickett III, created and maintained a tax return preparation business operating under Five Star Tax Agency LLC, Five Star Financial Services Inc., or Millenium Tax Professionals Inc. that prepared tax returns for their customers which understated tax liabilities and claimed bogus refunds. Their alleged scheme involved unlawfully (i) fabricating businesses and business-related profits or losses, (ii) manipulating, maximizing, or falsely claiming the Earned Income Tax Credit, (iii) claiming false education credits, (iv) claiming spurious fuel tax credits, (v) fabricating retirement account contributions and deductions, and (vi) failing to provide customers with complete copies of their tax returns. In August, the Court denied a motion to dismiss filed by the defendants and held that the allegations in the complaint “connect each defendant to a tax return preparation scheme that violates §§ 6694 and 6695 [of the Internal Revenue Code].”
Return preparer fraud is one of the Internal Revenue Service (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 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.
Department of Justice Awards Nearly $9 Million to Advance Community Policing Efforts and Increase First Responder Safety through Active Shooter TrainingRead the Press Release
Attorney General Jeff Sessions today announced nearly $9 million in funding through the Department of Justice, Office of Community Oriented Policing Services (COPS Office) to advance the practice of community policing in law enforcement and to provide critical training to help law enforcement officers prepare for active shooter situations. The announcement was made during the Attorney General’s remarks at the International Association of Chiefs of Police (IACP) conference in Philadelphia. The IACP will also be receiving over $200,000 for its Institute for Community and Police Relations.
"Community policing builds trust and mutual respect between communities and law enforcement, and that helps us reduce crime," Sessions said. "Over the last 23 years, the Department of Justice has invested more than $14 billion in community policing—and I have no doubt that it has saved lives across America. The investment the Department makes today builds on those efforts, and it underscores the Trump Administration’s commitment to support law enforcement. This investment will be put to good use: providing better training and safety for law enforcement officers and better relations with communities. That will benefit all of us. Under President Trump's strong leadership, this Department of Justice will continue to provide law enforcement officers with the resources and tools they need to make this country safe.”
Through the Community Policing Development (CPD) Program, the COPS Office will fund approximately $3.6 million to grantees that will provide training and technical assistance and develop innovative community policing strategies, applied research, guidebooks, and best practices. Grant awards were made in the following categories:- Field-Initiated Law Enforcement Microgrants;
- Officer Safety and Wellness Resources;
- Enhancing Officer Safety through Increased Respect for Law Enforcement; and
- Online Training Development.
A full list of grant awardees is available on the COPS Office website: http://www.cops.usdoj.gov/default.asp?Item=2895
Additionally, the COPS Office is awarding approximately $5.4 million in grant funding through the Preparing for Active Shooter Situations (PASS) Training Program to the Advanced Law Enforcement Rapid Response Training (ALERRT) Center at Texas State University. This funding is intended to increase law enforcement and public safety through scenario-based training that prepares officers and other first responders to safely and effectively handle active-shooter and other violent threats. Additional details on the PASS grant awardee are available on the COPS Office website: http://www.cops.usdoj.gov/default.asp?Item=2946Attorney General Jeff Sessions Gives Key Department of Justice Task Force New Tools to Dismantle MS-13Read the Press Release
Taking another step toward fulfilling President Trump’s goal of stamping out the brutal transnational criminal organization MS-13, Attorney General Jeff Sessions today formally designated the gang as a priority for the Department of Justice’s Organized Crime Drug Enforcement Task Forces (“OCDETF”).
Addressing the International Association of Chiefs of Police, the Attorney General explained that the formal priority designation of MS-13 allows OCDETF to utilize an expanded toolkit in its efforts to dismantle the organization. This means that OCDETF should look to all laws in its investigative and prosecutorial efforts, including drug laws, gun laws, tax laws, RICO, and anything else that will cripple the gang. In his speech, the Attorney General said:
“But this work is not finished. I am announcing today that I have designated MS-13 as a priority for our Organized Crime Drug Enforcement Task Forces. These task forces bring together a broad coalition of our federal prosecutors, DEA, FBI, ATF, ICE, HSI, the IRS, the Department of Labor Inspector General, the Postal Service Inspectors, the Secret Service, the Marshals Service, and the Coast Guard. And they all have one mission: to go after drug criminals and traffickers at the highest levels.
"Now they will go after MS-13 with a renewed vigor and a sharpened focus. I am announcing that I have authorized them to use every lawful tool to investigate MS-13—not just our drug laws, but everything from RICO to our tax laws to our firearms laws. Just like we took Al Capone off the streets with our tax laws, we will use whatever laws we have to get MS-13 off of our streets.”
For the Attorney General’s full speech click here.
To learn more about the mission of the Department of Justice’s Organized Crime Drug Enforcement Task Forces click here.Roofing Company Owner and Former Facilities Manager at Sierra Army Depot Indicted for Conspiracy to Defraud the United StatesRead the Press Release
UPDATE
The defendants in this case, Kenneth Keyes and Leroy Weber, were acquitted by a jury of the charges alleged in the indictment described in the press release below.
A federal grand jury in the Eastern District of California returned an indictment yesterday against two individuals for allegedly conspiring to defraud the United States, the Department of Justice announced.
The indictment alleges that Kenneth Keyes, a former facility manager at Sierra Army Depot (SIAD), and Leroy Weber, the owner of a roofing company, participated in a conspiracy to defraud the United States from as early as February 2012, and continuing through at least July 23, 2013, by obstructing the lawful functions of the United States Army through deceitful or dishonest means.
“Yesterday’s indictment demonstrates the Antitrust Division’s commitment to pursuing individuals who seek to enrich themselves by misusing federal programs at the expense of taxpayers,” said Assistant Attorney Makan Delrahim of the Justice Department’s Antitrust Division.
SIAD is a United States Army facility located in Northern California. In 2012, SIAD earmarked $40 million for construction and renovation projects at its site using contractors who qualified under the Small Business Administration’s 8(a) Development Program. The program provides assistance and benefits to small businesses owned and controlled by socially and economically disadvantaged individuals.
The indictment alleges that Keyes, Weber, and other unidentified co-conspirators:
- Recruited eligible 8(a) contractors to work as primary contractors at SIAD;
- Represented to those contractors that Weber controlled the work and allocation of SIAD contract awards;
- Caused prime contracts to be assigned to selected 8(a) contractors;
- Used proprietary government pricing information to inflate contract prices for the SIAD contracts;
- Required selected 8(a) contractors to award work to companies owned or controlled by Weber; and
- Required a contractor to pay Weber in exchange for being awarded certain subcontracts by 8(a) contractors.
The indictment also alleges that Weber caused a company under his control to issue weekly paychecks to a relative of Keyes, and himself caused $10,000 to be paid directly to Keyes.
The purpose of this conspiracy was to enable Keyes and Weber to unjustly enrich themselves and their family members by diverting government funds intended to rebuild and repair the SIAD Army facility to themselves and their companies.
An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. Weber and Keyes each face a maximum penalty of 5 years in prison and a fine of $250,000.
The charges are the result of an ongoing federal antitrust investigation handled by the Department of Justice Antitrust Division’s San Francisco Office with assistance from the U.S. Small Business Administration Office of Inspector General, the U.S. Army Criminal Investigation Command, and the General Services Administration Office of Inspector General. Anyone with information concerning the conspiracy should contact the Antitrust Division’s San Francisco Office at 415-934-5300.
Real Estate Investor Indicted for Bid Rigging in Eastern District of CaliforniaRead the Press Release
A federal grand jury in Sacramento returned an indictment yesterday charging a California real estate investor with bid rigging at public real estate foreclosure auctions, the Department of Justice announced.
Real estate investor Yama Marifat has been charged with conspiring with other real estate investors to rig bids when purchasing selected properties at foreclosure auctions in San Joaquin County, California, beginning in or about April 2009 and continuing until in or about October 2009.
The indictment, filed in the U.S. District Court for the Eastern District of California, alleges that Marifat and co-conspirators carried out the conspiracy by agreeing not to bid against each other on selected properties. Instead of bidding against one another, they designated one conspirator to bid at the public auction, then held second, private auctions and made payoffs to each other. An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
“Bid rigging subverts the competitive process, undermines consumers’ confidence in the market, and will not be tolerated,” said Assistant Attorney General Makan Delrahim of the Department of Justice Antitrust Division. “The Division remains committed to prosecuting the individuals who commit these crimes.”
Yesterday's indictment carries a maximum penalty of ten years in prison and a one million dollar fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
This case is part of an ongoing investigation of fraud and bidding irregularities in certain real estate auctions in San Joaquin County. As a result of this ongoing investigation, 12 individuals have pleaded guilty or been convicted in the U.S. District Court for the Eastern District of California. Ten of these individuals have been sentenced to serve prison terms ranging from five to eight months. In addition, the defendants have been ordered to pay a total of more than six million dollars in criminal fines and restitution.
The investigation is being conducted by the Antitrust Division’s San Francisco office and the FBI’s Sacramento Division. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco office at 415-394-5300, visit www.justice.gov/atr/contact/newcase.html, or contact the FBI’s Sacramento Division at 916-481-9110
Nigerian Citizen Sentenced to 6 ½ Years in Prison for $12 Million Tax Refund Fraud, Voter Fraud, and Illegal ReentryRead the Press Release
A Nigerian citizen, who resided in St. Louis, Missouri, was sentenced to 78 months in prison for mail fraud, aggravated identity theft, voter fraud, and re-entering the United States after having been removed, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Carrie Costantin for the Eastern District of Missouri.
According to documents filed with the court, Kevin Kunlay Williams, a.k.a. Kunlay Sodipo, 56, and others stole public school employees’ IDs from a payroll company and used them to electronically file more than 2,000 fraudulent federal income tax returns seeking more than $12 million in refunds. He also stole several return preparer’s Electronic Filing Identification Numbers (EFINs) and used them to secure tax-related bank products and services that facilitated the issuance of tax refunds, to include blank check stock and debit cards. Williams used the blank stock to print checks funded by the fraudulent refunds and directed some of the refunds onto debit cards.
Williams previously entered the United States from Nigeria under the name Kunlay Sodipo, but was deported in 1995. In 1999, Williams illegally returned to the United States from Nigeria using the last name Williams. In 2012, Williams registered to vote in federal, state and local elections by falsely claiming that he was a U.S. citizen and voted in the 2012 and 2016 presidential elections.
In addition to the term of prison imposed, Chief U.S. District Judge Rodney W. Sippel ordered Williams to pay restitution of $889,712 to the Internal Revenue Service, in addition to forfeiture of money orders totaling $10,810 seized during the investigation. Williams is in custody and also faces deportation.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Costantin commended special agents of IRS Criminal Investigation, FBI and the U.S. Postal Inspection Service as well as the Dothan, Alabama Police Department and Alexander City, Alabama Police Department, who conducted the investigation, and Trial Attorneys Michael C. Boteler and Charles M. Edgar, Jr. of the Tax Division, who prosecuted this case with assistance from the U.S. Attorney’s Offices in the Eastern District of Missouri and Middle District of Alabama.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Justice Department Invests $3.42 Million in Fight Against Elder Abuse and Financial ExploitationRead the Press Release
WASHINGTON – The U.S. Department of Justice today announced more than $3.42 million in funding to respond to elder abuse and victims of financial crimes throughout the United States. The awards will better protect older Americans by improving identification of elder abuse and strengthening the response to victims through innovative technology, closer interagency collaboration and enhanced legal services, among other approaches.
“Every American has the right to be safe,” said Attorney General Jeff Sessions. “Criminals who target and exploit our seniors are cowards, and their crimes are especially shameful because they prey upon the vulnerable. This Department of Justice will not accept these crimes in our society, and we are taking action to help investigate, punish, and deter crimes against our seniors with this $3.42 million investment.”
Nationally representative studies find that nearly 10 percent of older Americans have experienced some form of elder abuse. Elder abuse not only leads to a diminished quality of life, but has been shown to hasten mortality.
“Far too often, older Americans suffer from elder abuse, including crimes of financial exploitation,” said Office for Victims of Crime Director Darlene Hutchinson. “OVC is committed to supporting innovative solutions and responses to these terrible crimes perpetrated against this vulnerable and treasured population. This critical initiative should enhance the provision of services and support to victims of elder abuse and ensure that they receive the rights, services and responses they deserve.”
Funding was made by OVC in close collaboration with the Justice Department’s Elder Justice Initiative. Grants under OVC’s Field Generated Innovations in Addressing Elder Abuse and Financial Exploitation program were awarded to eight organizations around the country:
- Futures Without Violence - STAGES: Strategies and Training to Advance Greater Elder Safety (CA); approximately $500,000 to educate teams of justice and community professionals about financial exploitation and elder abuse and create a shared, grassroots justice system-community vision for elder justice.
- American Bar Association Fund for Justice - Enhancing and Evaluating Capacity of Elder Abuse Fatality Review Teams to Improve Victim Services (DC); approximately $235,000 to build on the foundational Elder Abuse Fatality Review Teams model with the goal of enhancing and evaluating the capacity of these teams to improve the delivery of victim and ancillary services.
- Northwestern University - Combating Elder Abuse and Financial Exploitation Through Technology/DASHBOARD (IL); approximately $500,000 to develop an interoperable and integrated dashboard to share data, risk factors and resources for elder abuse victims.
- Elder Law of Michigan Inc. - Innovation Framework for National Referral System Effective Referrals at the Community Level with Person-Enhanced Technology (MI); approximately $500,000 to develop a framework for a national referral system based on a community-level referral model used in Michigan for victimized and vulnerable older adults, along with research and evaluation.
- Lifespan of Greater Rochester Inc. - Elder Justice Advocates: Improving Outcomes for Elder Abuse Victims in New York State’s Criminal Justice System (NY); approximately $352,000 to recruit at least 50 elder justice advocates from victim advocates and victim assistance staff in district attorney offices, law enforcement units and domestic violence programs in at least 10 regions or counties across New York State.
- Pro Bono Net, Inc. - Pro Bono Net’s LawHelp Interactive/Risk Detector Elder Justice Initiative (NY); approximately $496,000 to create online tools that enable innovative partnership and outreach models to comprehensively identify, respond to and remedy elder abuse and financial exploitation.
- Utah Legal Services, Inc. - Innovative Remedies to Reduce Elder Abuse and Financial Exploitation (UT); approximately $346,000 to educate the public on barriers to reporting by sharing victims’ experiences and challenges in culturally appropriate video and podcast programs in Navajo, Spanish and English; develop and implement tailored legal intervention for high risk individuals; and develop a training protocol in order to improve referrals.
- End Domestic Abuse Wisconsin - National Clearinghouse on Abuse in Later Life (NCALL)/ Lifting Up the Voices of Older Survivors Video Project (WI); approximately $485,000 to create a collection of video clips of older survivors describing their experiences and insights regarding effective interventions, such as support groups and transitional housing.
“OVC is committed to building the capacity of professionals to respond vigorously and skillfully to crimes against older Americans,” said Hutchinson. “The Department of Justice, through its Elder Justice Initiative, which includes the work of many Department components, is working on multiple fronts to protect older Americans from elder abuse, financial exploitation and fraud. Together, we are increasing the physical and financial safety of America’s older adults.”
The Office of Justice Programs, headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at www.ojp.gov.Former Deputy Jailer at Kentucky River Regional Jail Sentenced to 108 Months in Prison for Assault of Inmate and Obstruction of JusticeRead the Press Release
A former supervisory deputy jailer at the Kentucky River Regional Jail has been sentenced to 108 months in federal prison and three years of supervised release related to his role in an unprovoked violent assault of a detainee who was being held at the jail, and for subsequently covering up the beating.
Yesterday, United States District Judge Karen K. Caldwell formally sentenced Kevin Eugene Asher, 32, on his conviction. Under federal law, Asher must serve 85 percent of his prison sentence. Following the completion of his prison term, he will be under the supervision of the United States Probation Office for the London, KY office of the Eastern District of Kentucky.
On April 12, 2017, a jury convicted 32-year-old Kevin Asher of deprivation of civil rights under color of law, and obstruction of justice.
According to evidence and testimony presented during the jury trial, in November 2012, Asher and another deputy jailer, Damon Wayne Hickman, physically assaulted Gary Hill, a 55-year-old inmate who was being held following an arrest for a misdemeanor charge of disorderly conduct.
According to testimony, Deputies Asher and Hickman approached Hill after Hill had run the faucet in his jail cell to the point where water had spilled out onto the floor. Hickman testified at trial that he punched Hill in the face, causing Hill to fall onto the floor. Hickman further testified that while Hill was curled up in a fetal position, he and Asher began kicking Hill. Asher and Hickman then immobilized Hill in a restraint chair and Hickman continued to beat him. Evidence established that following the brutal assault, the deputies failed to obtain any medical treatment for Hill who had received numerous injuries.
The jury also found that Asher obstructed justice by filling out an incident report at the jail in which he falsely claimed that Hill had slipped and fallen onto the floor and that no physical force had been used against him.
The Kentucky River Regional Jail houses pre-trial detainees from Perry and Knott Counties. As a supervisory deputy jailer, Asher was responsible for the custody, care, safety and control of the inmates at the jail.
Carlton S. Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky; John M. Gore, Acting Assistant Attorney General for the Civil Rights Division; and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly made today’s announcement.
“Nothing justifies or excuses the defendant’s outrageous conduct in this case,” said Acting Assistant Attorney General John Gore. “When deputy jailers make the corrupt choice to violate our Constitution and laws, the Justice Department will prosecute such misconduct, just as it did here.”
“This type of criminal conduct not only causes real injuries to victims, but tarnishes the work of truly dedicated law enforcement personnel,” said Acting U.S. Attorney Carlton Shier. “Prosecuting this type of disgraceful conduct is critical to making our communities safer. We simply must hold officials accountable for violations of the public trust that was placed in them.”
“Law enforcement officers are given tremendous power to enforce the law and ensure justice. Preventing abuse of this authority is necessary to protect the rights of our citizens and maintain confidence in law enforcement,” said Amy Hess, Special Agent in Charge of the FBI’s Louisville Office. “Mr. Asher’s sentence shows that the FBI will aggressively investigate color of law and civil rights violations, to hold those with the responsibility for upholding the law accountable to it.”
The investigation was conducted by the FBI and the Kentucky State Police. Assistant U.S. Attorney Hydee Hawkins of the United States Attorney’s Office and Trial Attorney Sanjay Patel of the Civil Rights Division prosecuted this case on behalf of the federal government.
Costa Rican Pleads Guilty to Selling Drugs Imported from India in the United StatesRead the Press Release
PITTSBURGH – A resident of Costa Rica, pleaded guilty in federal court to charges of mail fraud and money laundering, Acting United States Attorney Soo C. Song announced on October 16, 2017.
Ramiro Navarro Quesada, 41, a resident of Costa Rica pleaded guilty to two counts before Senior United States District Judge Donetta W. Ambrose. Quesada was arrested in Madrid, Spain, pursuant to an INTERPOL Red Notice, in February 2017. He was extradited to the United States in late August.
In connection with the guilty plea, the court was advised that Quesada used a Costa Rican website to advertise the Internet sale of Schedule II and IV controlled substances and erectile dysfunction drugs, which were exported from India and received in the United States.
Judge Ambrose scheduled sentencing for March 19, 2018 at 11 a.m. The law provides for a total sentence of 40 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
“This case is a prime example of how the U.S. will use all available tools at our disposal to identify and apprehend drug traffickers,” said Wayne Salzgaber, INTERPOL Washington Acting Director.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Food and Drug Administration, Office of Criminal Investigations, the Postal Inspection Service, Homeland Security Investigations, the Pennsylvania State Police and the Internal Revenue Service – Criminal Investigation conducted the investigation that led to the prosecution of Quesada.
********* Media Advisory *********Read the Press Release
The United States Postal Inspection Service, will hold a media event at the U.S. Attorney’s Office, 6th Floor, Sirena Building, Hagatna, on WEDNESDAY, OCTOBER 25, 2017, from 1:00 PM -2:00 PM, to discuss enforcement and prevention efforts regarding drug trafficking and drug abuse on Guam and the Northern Mariana Islands (NMI).
WHO: U.S. Postal Inspection Service
Assistant Inspector Kevin Rho, San Francisco DivisionUnited States Attorney’s Office
Drug Enforcement Administration
Guam Customs and Quarantine Agency
WHEN: Wednesday, October 25, 2017, at 1:00 PM - 2:00 PM
WHERE: U.S. Attorney’s Office Conference Room, 6th Floor, Sirena Building, Hagatna
NOTE: All media must present photo I.D. as well as valid media credentials.
Attorney General Applauds FBI's Massive Sex Trafficking CrackdownRead the Press Release
Note: Relevant video can be found here.
Underage Sex Trafficking Crackdown Leads to Recovery of 84 Minors
On Oct. 18, the Federal Bureau of Investigation, along with the National Center for Missing & Exploited Children (NCMEC), announced that 84 minors were recovered and 120 traffickers were arrested as part of Operation Cross Country XI, a nationwide effort focusing on underage human trafficking that ran from Oct. 12 to 15.
The Attorney General made the following statement on this crackdown:
“Every American has the right to be safe from violence and exploitation, and it is the mission of this Department to help secure that right. Today we take the next step toward that mission with the arrest of more than 120 alleged sex traffickers and the recovery of more than 80 trafficking survivors.
“I want to thank and commend the dedicated men and women of the FBI, the National Center for Missing & Exploited Children and our local, state and international law enforcement partners who made these arrests and rescues possible. They have delivered results that make this country safer and show clearly that collaboration makes us more effective in combating child exploitation.
“The Justice Department will continue to pursue our mission and, to that end, we will remain tireless in our efforts to rescue victims and put those who victimize children behind bars.”
From the FBI Release:
This is the 11th iteration of the FBI-led Operation Cross Country (OCC), which took place this year in 55 FBI field offices and involved 78 state and local task forces, consisting of hundreds of law enforcement partners. This year’s coordinated operations took place with several international partners, including Canada (Operation Northern Spotlight), the United Kingdom (Aident 8), Thailand, Cambodia, and the Philippines.
“We at the FBI have no greater mission than to protect our nation’s children from harm. Unfortunately, the number of traffickers arrested—and the number of children recovered—reinforces why we need to continue to do this important work,” said FBI Director Christopher Wray. “This operation isn't just about taking traffickers off the street. It's about making sure we offer help and a way out to these young victims who find themselves caught in a vicious cycle of abuse."
As part of Operation Cross Country XI, FBI agents and task force officers staged operations in hotels, casinos, and truck stops, as well as on street corners and Internet websites. The youngest victim recovered during this year’s operation was 3 months old, and the average age of victims recovered during the operation was 15 years old. Minors recovered during Cross Country Operations are offered assistance from state protective services and the FBI’s Victim Services Division. Depending on the level of need, victims are offered medical and mental health counseling, as well as a number of other services.
“Child sex trafficking is happening in every community across America, and at the National Center for Missing & Exploited Children, we’re working to combat this problem every day,” said NCMEC President and CEO John Clark. “We’re proud to work with the FBI on Operation Cross Country to help find and recover child victims. We hope OCC generates more awareness about this crisis impacting our nation’s children.”
Operation Cross Country XI is part of the FBI’s Innocence Lost National Initiative, which began in 2003 and has yielded more than 6,500 child identifications and locations. For additional information on Operation Cross Country XI and the Innocence Lost initiative, please visit www.fbi.gov.
Examples of stories from various cities that took part in Operation Cross Country XI:
On October 13th, FBI Denver recovered two minor girls—one 3-month-old and one 5-year-old. The subject, a friend of the children's family, offered an undercover officer access to the two children for sexual purposes in exchange for $600. The FBI is working with Child Protective Services to conduct a forensic interview and secure safe placement of the children. The subject was placed under arrest.
Also on October 13th, a 16-year old female victim was recovered by FBI El Paso, after an undercover agent called an online advertisement for entertainment. Shortly thereafter, the agent met with a 21-year-old female, who offered a fee of $200 to engage in sexual intercourse with her and another female, the 16-year-old victim. Further investigations revealed that a second adult female drove the minor and the 21-year-old to the undercover’s location. Both female subjects have been arrested on federal charges.
Note to Editors: B-Roll and interviews associated with this year’s operation can be downloaded at www.fbi.gov.Muksedur Rahman, Md. Rafiqul Islam and David Trung Quoc Phan Guilty of Mail Fraud, Fraud in Foreign Labor Contracting, and Visa FraudRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants Muksedur Rahman, Mohammad Rafiqul Islam, and David Trung Quoc Phan were found guilty of two counts of Mail Fraud, three counts of Fraud in Foreign Labor Contracting, and one count of Visa Fraud, by a 12-person jury in the District Court of the Northern Mariana Islands.
The charges in the Indictment spring from a scheme to defraud Bangladeshi men by promising them good-paying jobs in the United States, as well as Green Cards. Each of the victims paid over $10,000.00, but when they arrived in Saipan in April of 2016, they were not given work as promised. Defendant Mohammad Rafiqul Islam, and unindicted co-conspirators in Bangladesh recruiting the men, collected large fees from them, and deposited them into the bank accounts of defendants’ family members in Bangladesh. Defendant Muksedur Rahman coordinated the recruitment and employment of the victims from Saipan. A necessary part of the scheme required the purported employer, Defendant David Trung Quoc Phan, to mail fraudulent applications to United States Citizenship and Immigration Services in order to obtain CNMI-only work authorization permits. The victims were also ‘coached’ to lie to U.S. Embassy personnel in Dhaka during their visa interviews; the Defendants told the victims not to admit they had paid any fees for their jobs, upon pain of losing all the money they had already paid.
Acting United States Attorney Anderson stated, “The CNMI has been plagued by illegal recruitment scams for more than 20 years. They are difficult cases to investigate and prosecute. Every CW-1 permit approved for a sham employer for a non-existent job represents one less nurse at the Commonwealth Health Center, one less power plant operator for the Commonwealth Utilities Commission, or one less worker for the CNMI economy. The United States Attorney’s Office will continue to pursue these cases at every opportunity.”
Part of the evidence in the case consisted of official bank records obtained from the Government of Bangladesh pursuant to a mutual legal assistance letter request (MLAT) prepared by the U.S. Department of Justice’s Office of International Affairs (OIA). The case against Defendant Rahman and his co-defendants is the first NMI District case in which foreign evidence has been obtained through the MLAT process.
Special Agents and Task Force Officers from the Department of Homeland Security, Homeland Security Investigations (HSI) conducted the investigation. Assistant United States Attorneys James Benedetto and Eric O’Malley prosecuted the case. Sentencing is set for March 9, 2018.
Leading Electrolytic Capacitor Manufacturer Indicted for Price FixingRead the Press Release
A federal grand jury returned an indictment against an electrolytic capacitor manufacturer for participating in a conspiracy to fix prices for electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today.
The indictment, filed in the U.S. District Court for the Northern District of California in San Francisco, charges that Nippon Chemi-Con Corporation, based in Japan, conspired to suppress and eliminate competition for electrolytic capacitors from as early as September 1997 until January 2014. Three current Nippon Chemi-Con executives, and one former Nippon Chemi-Con executive, were previously indicted for their participation in the conspiracy: Takuro Isawa, Takeshi Matsuzaka, Yasutoshi Ohno, and Kaname Takahashi.
“Today’s indictment affirms the Antitrust Division’s commitment to holding companies accountable for conspiring to cheat American consumers,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Division will prosecute companies—no matter where they are located—that violate U.S. antitrust laws.”
According to the one-count felony charge, Nippon Chemi-Con carried out the conspiracy by agreeing with co-conspirators to fix prices of electrolytic capacitors during meetings and other communications. Capacitors were then sold in accordance with these agreements. As part of the conspiracy, Nippon Chemi-Con and its co-conspirators took steps to conceal the conspiracy, including the use of code names and providing misleading justifications for prices and bids submitted to customers in order to cover up their collusive conduct.
As a result of the government’s ongoing investigation, eight companies and ten individuals have been charged with participating in a conspiracy to fix prices of electrolytic capacitors. Electrolytic capacitors store and regulate electrical current in a variety of electronic products, including computers, televisions, car engines and airbag systems, home appliances, and office equipment.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Today’s charge results from ongoing federal antitrust investigations being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office into price fixing, bid rigging and other anticompetitive conduct in the capacitor industry. Anyone with information related to the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit https://www.justice.gov/atr/report-violations, or call the FBI tip line at 415-553-7400.
Fugitive Lawyer and Accomplice Indicted for EscapeRead the Press Release
A former eastern Kentucky social security disability lawyer and an accomplice were charged in a federal indictment with various offenses related to the lawyer’s escape from home confinement and his failure to appear for sentencing.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Amy S. Hess of the FBI Louisville, Kentucky Field Division and Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division made the announcement.
Eric Christopher Conn, 56, of Pikeville, Kentucky, the former disability lawyer, and Curtis Wyatt, 47, of Raccoon, Kentucky, his alleged accomplice, were charged in a seven-count indictment returned on Sept. 6, in the Eastern District of Kentucky in Lexington. The indictment was unsealed prior to Wyatt’s initial appearance and arraignment today before U.S. Magistrate Judge Robert E. Wier of the Eastern District of Kentucky. Wyatt entered pleas of not guilty and was released on bond pending his trial, which is scheduled for Dec. 18, before U.S. District Judge Danny C. Reeves. Conn remains a fugitive.
The indictment charges Conn and Wyatt with one count of conspiracy to escape and one count of conspiracy to fail to appear for sentencing. Conn is also charged with one count of escape and one count of failing to appear. Wyatt is also charged with one count each of assisting in Conn’s escape, aiding and abetting Conn’s failure to appear, and making a false statement to the FBI.
The indictment alleges that Conn, while on home confinement, escaped from custody by severing an electronic monitoring device from his ankle during a court-approved visit to Lexington on June 2, and fled to the Mexican border in a vehicle delivered to him by Wyatt a day earlier. The indictment further alleges that Wyatt, at Conn’s direction and prior to Conn’s escape, crossed into Mexico at two different pedestrian checkpoints to assess security procedures for individuals exiting the United States in an effort to aid Conn in escaping prior to Conn’s sentencing hearing. According to the indictment, Conn ultimately failed to appear for his sentencing hearing on July 14.
Conn was indicted last year, along with a former Social Security administrative law judge and a clinical psychologist, in an 18-count indictment charging conspiracy, mail and wire fraud, false statements, money laundering and other related offenses in connection with a $600 million social security disability fraud scheme. Conn previously pleaded guilty on March 24, to a two-count information charging him with theft of government money and paying illegal gratuities, and was sentenced in absentia on July 14, to 12 years in prison on those charges. Conn remains charged under the original indictment.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI is offering a reward of up to $20,000 for information leading to the arrest of Eric Christopher Conn. Anyone with information relating to Conn’s whereabouts should contact their local FBI office or the nearest American Embassy or Consulate.
The SSA-OIG and FBI investigated the case. Trial Attorney Dustin M. Davis of the Criminal Division’s Fraud Section and Trial Attorney Elizabeth G. Wright of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
Fourth Texas Man Pleads Guilty to Hate Crime for Assault Based on Victim’s Sexual OrientationRead the Press Release
Anthony Shelton, 19, pleaded guilty yesterday to assaulting a man because of the victim’s sexual orientation, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Eastern District of Texas, and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Division announced.
According to the plea agreement, Shelton admitted that he and Nigel Garrett used Grindr, a social media dating platform for gay men, to arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted the victim, and made derogatory statements to the victim for being gay. The defendants brandished a firearm during the home invasion, and they stole the victim’s property, including his motor vehicle.
A federal grand jury previously had returned an eighteen-count superseding indictment, against Shelton and three other men, that included charges for hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes.The indictment also charged the defendants with conspiring to cause bodily injury because of the victims’ sexual orientation during four home invasions in Plano, Frisco, and Aubrey, Texas, from January 17 to February 7, 2017. Nigel Garrett, Chancler Encalade, and Cameron Ajiduah subsequently pleaded guilty to hate crime charges from this indictment, and all three await sentencing.
“Hate crimes are violent crimes that attack the fundamental principles of the United States to be free from fear of violence because of your sexual orientation, gender identity, race, color, religion, or national origin,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to aggressively investigate and prosecute hate crimes.”
"Crimes of violence are an investigative priority for the U.S. Attorney's Office," said Acting U.S. Attorney Brit Featherston. "An assault perpetrated because of one's race, ethnicity, religion, nationality, sexual orientation, or among other prohibited factors, is an attack on American values. We will leave no stone un-turned to prosecute hate crimes."
Shelton faces a maximum statutory penalty of life in prison and a $250,000 fine for his guilty plea to the hate crime charge. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The investigation is being conducted by the ATF, the Plano Police Department, and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
Shih Ya Hung aka Angie Sentenced for Making a False StatementRead the Press Release
SHAWN ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant SHIH YA HUNG aka ANGIE, age 35, from Taiwan, was sentenced today in District Court to a two (2) year term of probation, 50 hours of community service, and must report to a duly authorized immigration official to determine whether deportation proceedings are appropriate.
On August 18, 2014, HUNG, entered a guilty plea to an Information that charged Making a False Statement, in violation of 18 U.S.C. § 1001(a)(1). On June 16, 2013, December 5, 2013, and March 25, 2014, HUNG traveled from Taiwan and entered Guam under two Visa Waiver Programs: the Guam-CNMI Visa Waiver Program and the Visa Waiver Program, posing as a tourist, when in fact HUNG intended to and did find employment at Star Melody/Linda’s Lounge in violation of said Visa Waiver Programs. HUNG worked at Star Melody/Linda’s Lounge as a club hostess soliciting drink sales from customers for financial profit for her and the lounge. When interviewed, HUNG informed law enforcement she never worked for Star Melody/Linda’s Lounge, when in fact she was employed as a hostess for the establishment and she knew when making the statement it was untrue.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations. Assistant U.S. Attorney Stephen F. Leon Guerrero prosecuted the case.
Real Estate Investor Pleads Guilty to Bid Rigging in Northern California Public Foreclosure AuctionsRead the Press Release
A real estate investor pleaded guilty for his role in conspiracies to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Raymond A. Grinsell pleaded guilty to two counts of bid rigging in the U.S. District Court for the Northern District of California in San Francisco. Grinsell was charged in an indictment returned by a federal grand jury on October 22, 2014.
According to court documents, Grinsell participated in conspiracies to rig bids by agreeing to refrain from bidding against other co-conspirators at public real estate foreclosure auctions in San Mateo and San Francisco counties. The conspiracies began as early as August 2008 and continued until January 2011.
The primary purpose of the conspiracies was to suppress competition in order to obtain selected properties offered at San Mateo County and San Francisco County public foreclosure auctions at noncompetitive prices.
Today’s guilty plea is the result of the Department’s ongoing investigation into bid rigging at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, California. To date, 64 individuals have pleaded guilty.
These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Peter Ogo, Jr. Sentenced to Prison for Bank FraudRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant PETER D.T. OGO, JR., age 30, was sentenced in District Court today to a term of imprisonment of 41 months for Conspiracy to Commit Bank Fraud. The Court also ordered five years of supervised release, restitution in the amount of $5,225.00, and a mandatory $100 assessment fee.
On February 15, 2017, defendant and three other co-defendants, were charged in an Indictment with Conspiracy to Commit Bank Fraud and Bank Fraud. On April 26, 2017, defendant OGO entered a guilty plea to Conspiracy to Commit Bank Fraud, in violation of 18 U.S.C. § 1349. The defendant participated in an ATM debit fraud scam involving Bank of Guam (BOG) funds and fraudulent Wells Fargo Bank checks. As part of the conspiracy, the defendant deposited fraudulent Wells Fargo Bank checks into third party BOG accounts via ATM transactions, and then withdrew funds based upon the deposited checks. The defendant recruited relatives to access their BOG bank accounts. He used their debit cards and PINs to obtain cash from ATMs. For the entire period of the conspiracy, the defendant and his co-conspirators deposited over 100 fraudulent Wells Fargo bank checks in order to obtain over $70,000 of BOG funds. The fraudulent Wells Fargo Bank checks belonged to defendant’s cousin Katrina Tedtaotao, who is awaiting sentencing.
Special Agents from the FBI conducted the investigation. The case was prosecuted by Marivic P. David, Assistant United States Attorney for the District of Guam.
Owner and Employee of Metal Plating Government Contractor Plead Guilty to Hazardous Waste CrimesRead the Press Release
Phillip Michael Huddleston, 61, pleaded guilty today to violating the federal Resource Conservation and Recovery Act (“RCRA”) by illegally storing hazardous waste without a permit at Protech Metal Finishing, LLC, a metal plating facility he owned and operated in Vonore, Tennessee.
John Thomas Hatfield, 43, Protech’s production manager, pleaded guilty on October 2, 2017, to being an accessory after-the-fact to Protech’s illegal storage of hazardous waste. In order to hinder an investigation of Protech’s compliance with the RCRA, Hatfield represented that containers of hazardous waste were accurately labeled when he knew that they were not.
“These guilty pleas are the result of notable efforts undertaken by multiple law enforcement agencies to enforce provisions in government contracts and the RCRA that protect human health and the environment,” said Acting Assistant Attorney General Jeffrey H. Wood. “In this case, what was at stake was the health and safety of Protech employees and the community of Vonore, Tennessee.”
When Congress passed the RCRA, it determined that the disposal of, and inadequate controls over hazardous waste “will result in substantial risks to human health and the environment.” To that end, the RCRA imposes “cradle-to-grave” tracking, handling, and reporting controls to ensure that companies like Protech properly manage the generation, storage, transport, and disposal of hazardous wastes. The maximum penalty for each felony RCRA count is five years in prison and a fine of $250,000. The maximum penalty for this accessory-after-the-fact count is one year in prison and a fine of $25,000.
Defendants Hatfield and Huddleston are scheduled to be sentenced by Senior District Court Judge Leon Jordan on January 10 and January 8, 2018, respectively.
This case is being prosecuted by Assistant United States Attorney Matt Morris of the U.S. Attorney’s Office for the Eastern District of Tennessee, and Trial Attorneys Cassandra Barnum and Senior Trial Attorney Todd W. Gleason of the Environment and Natural Resources Division. The prosecution is the result of an investigation by the IRS, EPA-CID, TVA-OIG, Department of Defense, and Department of Energy.
Justice Department Requires General Electric Company to Make Incentive Payments to Encourage Completion of Divestitures Agreed to as a Condition of Baker Hughes MergerRead the Press Release
The Department of Justice announced that General Electric Co. (GE) has agreed to make incentive payments beginning in 2018 until GE completes the worldwide divestiture of its Water & Process Technologies business (GE Water). GE agreed to divest GE Water to resolve the Department’s competitive concerns with GE’s acquisition of Baker Hughes Incorporated. As part of the original proposed settlement filed on June 12, 2017, GE committed to divest the worldwide assets of GE Water to SUEZ S.A., a leading global water and waste management company, by approximately the end of September 2017.
While GE has divested GE Water assets accounting for approximately 90 percent of GE Water’s revenues (including all assets in North America), it has not yet transferred to Suez legal title of GE Water assets in certain international jurisdictions due to various administrative challenges. Delays are likely to push the divestiture in some international jurisdictions into 2018. In the meantime, GE has conferred beneficial ownership and operational control of the assets in these jurisdictions to Suez.
The Department filed a motion to enter a modified final judgment in the U.S. District Court for the District of Columbia, which the Court approved and signed yesterday. The Court Order contains two newly agreed-upon provisions of note. First, in order to encourage GE to complete the divestitures promptly, the Court Order requires GE to begin making daily incentive payments as soon as January 1, 2018, until the divestitures in each international jurisdiction are completed. Second, the Order reflects GE’s agreement to reimburse the United States for attorney’s fees and costs incurred in addressing these delays.
In moving the Court to approve the settlement and incentive payment structure, the Department explained that it only agrees to resolve the competitive concerns raised by a merger through a divestiture remedy “if it determines that the buyer of the divestiture assets will step seamlessly into the shoes of one of the merging parties and preserve the competition that otherwise would be lost due to the merger.” To ensure that competition is preserved, merging companies must commit to completing the required divestiture in a timely fashion and, in return, they are allowed to consummate their merger before the divestiture is finalized. In this case, GE signed a Hold Separate Stipulation and Order in which it agreed to make a prompt, complete divestiture and was allowed to consummate its merger with Baker Hughes on July 3. However, GE is now unable to comply with the timing it committed to in its original settlement with the Department.
“The Antitrust Division takes seriously the enforcement of commitments parties make when settling antitrust lawsuits and will seek to have the parties reimburse United States taxpayers for the fees and expenses the Division incurs in enforcing our consent decrees,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “I want to recognize and commend General Electric for its proactive cooperation in resolving the issues arising from the incomplete execution of the required divestiture within the original timeframe and for agreeing to reimburse the taxpayers in connection with the review and revision of the decree.”
GE is a New York corporation headquartered in Boston, Massachusetts. GE is a large, diversified corporation that, among other lines of business, supplies the oil and gas industry with a variety of products and services. GE generated $16 billion in revenues from oil- and natural gas-related products and services in 2015.
Justice Department Announces First Ever Indictments Against Designated Chinese Manufacturers of Deadly Fentanyl and Other Opiate SubstancesRead the Press Release
Note: The relevant court documents can be found here: Zhang et al Indictment and Yan et al Indictment.
The Justice Department announced today that federal grand juries in the Southern District of Mississippi and the District of North Dakota returned indictments, unsealed yesterday, against two Chinese nationals and their North American based traffickers and distributors for separate conspiracies to distribute large quantities of fentanyl and fentanyl analogues and other opiate substances in the United States. The Chinese nationals are the first manufacturers and distributors of fentanyl and other opiate substances to be designated as Consolidated Priority Organization Targets (CPOTs). CPOT designations are those who have “command and control” elements of the most prolific international drug trafficking and money laundering organizations.
On Sept. 7, Xiaobing Yan, 40, of China, was indicted in the Southern District of Mississippi on two counts of conspiracy to manufacture and distribute multiple controlled substances, including fentanyl and fentanyl analogues, and seven counts of manufacturing and distributing the drugs in specific instances. Yan, a distributor of a multitude of illegal drugs, used different names and company identities over a period of at least six years and operated websites selling acetyl fentanyl and other deadly fentanyl analogues directly to U.S. customers in multiple cities across the country. Yan also operated at least two chemical plants in China that were capable of producing ton quantities of fentanyl and fentanyl analogues. Yan monitored legislation and law enforcement activities in the United States and China, modifying the chemical structure of the fentanyl analogues he produced to evade prosecution in the United States. Over the course of the investigation, federal agents identified more than 100 distributors of synthetic opioids involved with Yan’s manufacturing and distribution networks. Federal investigations of the distributors are ongoing in 10 judicial districts, and investigators have traced illegal proceeds of the distribution network. In addition, law enforcement agents intercepted packages mailed from Yan’s Internet pharmaceutical companies, seizing multiple kilograms of suspected acetyl fentanyl, potentially enough for thousands of lethal doses.
On Sept. 20, Jian Zhang, 38, of China, five Canadian citizens, two residents of Florida, and a resident of New Jersey were indicted in the District of North Dakota for conspiracy to distribute fentanyl and fentanyl analogues in the United States, conspiracy to import the drugs from Canada and China, a money laundering conspiracy, an international money laundering conspiracy, and operation of a continuing criminal enterprise. Zhang ran an organization that manufactured fentanyl in at least four known labs in China and advertised and sold fentanyl to U.S. customers over the Internet. Zhang’s organization would send orders of fentanyl or other illicit drugs, or pill presses, stamps, or dies used to shape fentanyl into pills, to customers in the United States through the mail or international parcel delivery services. Federal law enforcement agents determined that Zhang sent many thousands of these packages since January of 2013.
On Oct. 11, Elizabeth Ton, 26, and Anthony Gomes, 33, both of Davie, Florida were arrested. On Oct. 12, Darius Ghahary, 48, of Ramsey, New Jersey was arrested. Ton, Gomes, and Ghahary are charged with drug trafficking conspiracy in the Zhang indictment.
The investigations of Yan and Zhang revealed a new and disturbing facet of the opioid crisis in America: fentanyl and fentanyl analogues are coming into the United States in numerous ways, including highly pure shipments of fentanyl from factories in China directly to U.S. customers who purchase it on the Internet. Unwary or inexperienced users often have no idea that they are ingesting fentanyl until it is too late. The Centers for Disease Control estimates that over 20,000 Americans were killed by fentanyl and fentanyl analogues in 2016, and the number is rising at an exponential rate.
Zhang was charged with conduct resulting in the deaths of four individuals in North Carolina, New Jersey, North Dakota, and Oregon in 2014 and 2015 and the serious bodily injuries related to five additional individuals.
These recent law enforcement efforts to keep fentanyl and fentanyl analogues from entering the United States were announced by Deputy Attorney General Rod J. Rosenstein; Acting Administrator Robert W. Patterson of the Drug Enforcement Administration (DEA), Acting Deputy Director Peter T. Edge of U.S. Immigration and Customs Enforcement (ICE) and Assistant Commissioner Joanne Crampton of the Royal Canadian Mounted Police (RCMP).
“Zhang and Yan are the first Chinese nationals designated as Consolidated Priority Organization Targets (CPOTs),” said Deputy Attorney General Rosenstein. “CPOTs are among the most significant drug trafficking threats in the world. The defendants allegedly shipped massive quantities of deadly fentanyl and other synthetic opioids to communities throughout the United States, mostly purchased on the Internet and sent through the mail. The chemicals allegedly killed and injured people in several states, and surely caused misery to many thousands of people. Under the leadership of President Trump and Attorney General Sessions, we are taking back our communities by pursuing suppliers of deadly drugs wherever they are located.”
“Xiaobing Yan, Jian Zhang and their respective associates represent one of the most significant drug threats facing the country – overseas organized crime groups capable of producing nearly any synthetic drug imaginable, including fentanyl, and who attempt to hide their tracks with web-based sales, international shipments and cryptocurrency transactions,” said DEA Acting Administrator Patterson. “At a time when overdose deaths are at catastrophic levels, one of DEA’s top priorities is the pursuit of criminal organizations distributing their poison to American neighborhoods. These indictments are a first step; our investigators remain relentless in their pursuit to dismantle these organizations and bring those responsible to justice. DEA, along with our global network of law enforcement partners, will go after these types of criminals wherever they operate.”
“This case began when local police officers responded to what has become an all-too familiar tragedy in the United States: the heroin and fentanyl overdose of two young adults, one who survived and another who did not,” said ICE Acting Deputy Director Edge. “Fentanyl is 50 times more potent than heroin and 100 times more potent than morphine. Drug trafficking organizations that deal in such a deadly game will have to face the combined resources of federal law enforcement agencies and our international partners. ICE Homeland Security Investigations is committed to helping combat this new and growing epidemic.”
“We live in an increasingly global and interconnected world – crime has no borders,” said Assistant Commissioner Crampton. “Law enforcement must respond accordingly by working beyond our borders together to detect and disrupt criminal activity. By fostering a solid integrated and coordinated law enforcement approach, we will continue to disrupt international drug trafficking networks.”
The cases against Yan and Zhang are being investigated by the DEA, ICE Homeland Security Investigations, the Internal Revenue Service Criminal Investigation, the U.S. Postal Inspection Service and the RCMP. Valuable investigative assistance has also been provided by U.S. Customs and Border Protection and the Ministry of Public Security of China. The case against Yan is being prosecuted by Assistant U.S. Attorney John Meynardie in the Southern District of Mississippi. The case against Zhang is being prosecuted by U.S. Attorney Chris Myers and Assistant U.S. Attorney Scott Kerin in the District of North Dakota, along with Trial Attorney Adrienne Rose of the Criminal Division’s Narcotic and Dangerous Drug Section. Substantial prosecutorial assistance has been provided by the U.S. Attorney’s Office in the District of Oregon and the Quebec office of the Public Prosecution Service of Canada.
Both of the indictments announced today are the result of coordinated, multi-agency, multi-national investigations conducted by agents and investigators of the Organized Crime Drug Enforcement Task Forces (OCDETF), and were further supported with national and international coordination led by the multi-agency Special Operations Division (SOD). The OCDETF Program is a partnership between federal, state, local, and international law enforcement agencies. The OCDETF mission is to target the most serious transnational organized crime threats facing the United States, including drug trafficking, weapons trafficking, and money laundering. Prior to the announcement of these indictments, Jian Zhang and Xiaobing Yan were designated as OCDETF Consolidated Priority Organization Targets (CPOTs), and are considered by the United States as some of the most significant drug trafficking threats in the world.
If convicted, Yan faces a maximum statutory penalty of 20 years in prison, a $1 million fine, and three years of supervised release. Zhang faces up to life in prison and $12.5 million in fines. Any sentences will be determined at the discretion of the district courts after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Twenty-one individuals in total have been indicted on federal drug charges in both North Dakota and Oregon as part of the investigation.
Houston Federal Court Shuts Down Tax Return PreparerRead the Press Release
On Oct. 16, a federal court in Houston, Texas, permanently enjoined Felisha Gibson and Ms. Lesa’s Tax Service LLC from preparing federal tax returns for others, the Justice Department announced today. Gibson agreed to a civil injunction order entered against her that requires her and Ms. Lesa’s Tax Service LLC to cease preparing tax returns for others. The injunction also requires Gibson to produce a list of her customers to the United States.
According to the government’s complaint, Gibson, through her business located in Houston, Texas, routinely prepared federal tax returns for customers that reported false, improper, or inflated expense deductions and business income, as well as false claims for education tax credits and improper dependents. For example, the complaint alleges that a customer reported that Gibson fabricated a business with income and expenses for tax years 2013 and 2014, and falsely claimed an education credit in her tax returns even though the customer never attended college.
Return preparer fraud is one of the Internal Revenue Service (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 website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Attorney General Sessions Announces Director of Asset Forfeiture AccountabilityRead the Press Release
Attorney General Sessions issued a memorandum to Deputy Attorney General Rod Rosenstein this week, directing him to hire a Director of Asset Forfeiture Accountability (“Director”). The Director will review and coordinate all aspects of the Department’s Asset Forfeiture Program, and work with appropriate Department of Justice components to ensure compliance, review complaints, and advance the integrity, efficiency, and effectiveness of the program.
About the memorandum, Attorney General Sessions made the following statement:
“As our law enforcement partners will tell you and as President Trump knows well, asset forfeiture is a key tool that helps law enforcement defund organized crime, take back ill-gotten gains, and prevent new crimes from being committed, and it weakens the criminals and the cartels. Even more importantly, it helps return property to the victims of crime.“For this to be effective, however, we must start with strong leadership at the top, in conjunction with close coordination of forfeiture activities at all levels of the Department of Justice. That’s why, today, I have directed the hiring of a Director of Asset Forfeiture Accountability within the Office of the Deputy Attorney General.
“The Director will begin work immediately on priority initiatives and recommendations, including: modernization of the National Asset Forfeiture Strategic Plan, updating the Asset Forfeiture Program's policy guidance, and improving controls over use of program funds. I make this decision today because I believe it is important to have senior-level accountability in the Department of the day-to-day workings of the asset forfeiture program, as well as authority to coordinate with relevant components to make the necessary changes to the program to ensure it continues to operate in an accountable and responsible way."
Note: View the memorandum here.Federal Court Shuts Down Houston Area Tax Return PreparersRead the Press Release
A federal court in Houston, Texas, permanently enjoined Levett Navarro Camarena and her son Chase Edward Camarena from preparing federal tax returns for others, including under the name of the business Hispanic Services, the Justice Department announced today. Levett Camarena and Chase Camarena agreed to civil injunction orders that require them to cease preparing federal tax returns.
According to the government’s complaint, Levett Camarena and Chase Camarena, through a business called Hispanic Services located on Nyland Street in Houston, Texas, routinely prepared federal tax returns for customers that contained false, improper, or inflated individual deductions on Schedule A (Itemized Deductions) and business expenses on Schedule C (Profit and Loss from Business Sole Proprietorship). Furthermore, the returns reported Schedule C businesses that did not exist, according to the complaint.
The complaint alleged that in some cases the returns overstated business income. The allegations in the complaint explained that while overstating business income increased self-employment taxes, the increase was substantially less than increased earned income credits also claimed on the returns. The increased earned income credits would cause an understatement of the client’s tax liability, according to the complaint.
According to the complaint, the Internal Revenue Service (IRS) examined 409 returns for years 2012 through 2014 filed by Hispanic Services and prepared by Levett Camarena or Chase Camarena. The IRS adjusted 278 of the returns (68%) examined with average deficiencies between $1,848 to $2,352, according to the complaint. The IRS selected 20 tax returns prepared and filed by Hispanic Services for 2015 and was able to talk to 17 taxpayers, according to the complaint. Each taxpayer interviewed stated the charitable contributions or business expenses on the returns did not exist or were grossly exaggerated, according to the complaint. Each taxpayer allegedly denied giving the amount used on the return to the preparer. According to the complaint, the IRS selected and interviewed 17 taxpayers whose 2016 returns were prepared by Hispanic Services. According to the complaint, at least 9 of the 16 clients whose returns were prepared by Levett Camarena said the returns understated their respective tax liabilities by reporting false business information. In addition, one client whose return was prepared by Chase Camarena stated his charitable contributions were grossly overstated on his Schedule A, 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. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Attorney General Jeff Sessions Issues Statement on FBI Statistics Showing Staggering Rise in Law Enforcement Officers Killed and Assaulted in the Line of Duty in 2016Read the Press Release
Attorney General Jeff Sessions today issued the following statement on the FBI's 2016 Law Enforcement Officers Killed and Assaulted report, which show an unacceptable rise in law enforcement officers assaulted and killed in the line of duty:
"Every law enforcement officer goes to work knowing that today might be his or her last. But last year, we saw a staggering 61 percent increase in the number of law enforcement officers killed in the line of duty because of a felony, and on average, more than 150 officers were assaulted in the line of duty every single day. These numbers are as shocking as they are unacceptable.
“Our law enforcement deserves the support of the people they serve. Fortunately we have a President who understands this. President Trump ran for office as a law-and-order candidate; now he is governing as a law-and-order President.
“In one of his first Executive Orders to this Department, President Trump directed us to prevent violence against law enforcement officers. He stands with our law enforcement 100 percent—and so does this Department of Justice. That's one more reason why we're focused on the President's goal of reducing violent crime and united with local, state, and federal law enforcement in our shared mission to protect law-abiding people in every community."
According to statistics collected by the FBI, 118 law enforcement officers were killed in line-of-duty incidents in 2016 – this is a 37 percent increase from 2015, when 86 law enforcement officers were killed in line-of-duty incidents.
Additionally, in 2016 there were 66 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a staggering 61 percent increase from 2015, when 41 law enforcement officer were killed in line-of-duty incidents.
Moreover, 57,180 officers were victims of line-of-duty assaults – this is a 14 percent rise from the 50,212 officer that were victims of line-of-duty assaults in 2015.
For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2016 edition of Law Enforcement Officers Killed and Assaulted report, released today.