District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Tips on Avoiding Fraudulent Charitable Contribution SchemesRead the Press Release
The National Center for Disaster Fraud reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Unfortunately, criminals can exploit disasters, such as Hurricane Harvey, for their own gain by sending fraudulent communications through email or social media and by creating phony websites designed to solicit contributions.
Tips should be reported to the National Center for Disaster Fraud at (866) 720-5721. The line is staffed 24 hours a day, seven days a week. Additionally, e-mails can be sent to [email protected], and information can be faxed to (225) 334-4707.
The U.S. Department of Justice established the National Center for Disaster Fraud to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 30 federal, state, and local agencies participate in the National Center for Disaster Fraud, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
The public should remember to perform due diligence before giving contributions to anyone soliciting donations or individuals offering to provide assistance to those affected by the hurricane and tornadoes. Solicitations can originate from social media, e-mails, websites, door-to-door collections, flyers, mailings, telephone calls, and other similar methods.
Before making a donation of any kind, consumers should adhere to certain guidelines, including:
- Do not respond to any unsolicited (spam) incoming e-mails, including clicking links contained within those messages, because they may contain computer viruses.
- Be skeptical of individuals representing themselves as members of charitable organizations or officials asking for donations via e-mail or social networking sites.
- Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.
- Rather than follow a purported link to a website, verify the legitimacy of nonprofit organizations by utilizing various Internet-based resources that may assist in confirming the group’s existence and its nonprofit status.
- Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
- To ensure contributions are received and used for intended purposes, make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
- Do not be pressured into making contributions; reputable charities do not use such tactics.
- Be aware of whom you are dealing with when providing your personal and financial information. Providing such information may compromise your identity and make you vulnerable to identity theft.
- Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
- Legitimate charities do not normally solicit donations via money transfer services. Most legitimate charities’ websites end in .org rather than .com.
Fishing Vessel Owner Convicted for Oil and Garbage Offenses Off American SamoaRead the Press Release
A fishing vessel company that operated in and around American Samoa was convicted and sentenced today for maintaining false and incomplete records relating to the discharge of oil and garbage, announced Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division and United States Attorney Channing D. Phillips. The company, Yuh Fa Fishery (Vanuatu) Co. Ltd., owned the Fishing Vessel (“F/V”) Yuh Fa No. 201, the vessel that was responsible for the pollution.
Yuh Fa Fishery (Vanuatu) Co. Ltd., admitted that its engineers failed to document the illegal dumping of oily bilge water into the waters of the South Pacific Ocean without the use of required pollution prevention equipment. The Chief Engineer onboard the F/V Yuh Fa No. 201 acknowledged that there had been discharge of oil to the sea that caused a visible sheen upon the water and that he did not log this discharge in the vessel’s Oil Record Book, as required by law. The company also admitted that its engineers made several modifications using flexible hoses to the vessel’s piping system, which allowed oily bilge water and oil sludge to be discharged directly overboard.
The company further admitted that between June 2013 and June 2016, senior engineers regularly failed to accurately record the transfer and disposal of oil waste in the vessel’s Oil Record Book. The vessel’s captains also failed to properly maintain a Garbage Record Book, and Yuh Fa Fishery (Vanuatu) Co. Ltd., was unable to accurately account for the storing, sorting, and disposal of garbage during the vessel’s extended fishing trips. The Coast Guard relies on such records to determine whether vessels are illegally dumping oil and garbage at sea. As a result, tons of oil sludge, waste oil, oily bilge water, and garbage produced by the vessel remain unaccounted for.
The company pleaded guilty to two felony violations of the Act to Prevent Pollution from Ships, 33 U.S.C. § 1908(a), for failing to accurately maintain an Oil Record Book and a Garbage Record Book. Under the terms of the plea agreement, the company will pay a total fine of $2.5 million, which includes a community service payment of $625,000 for use in the National Marine Sanctuary of American Samoa. Yuh Fa Fishery (Vanuatu) Co. Ltd., will also serve a 5-year period of probation.
The case against Yuh Fa Fishery (Vanuatu) Co. Ltd., was investigated by U.S. Coast Guard personnel in American Samoa and Honolulu, Hawaii. The case was prosecuted by Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the Department of Justice, and Assistant U.S. Attorney Frederick W. Yette of the U.S. Attorney's Office for the District of Columbia.
Eastern Iowa Businessman Sentenced to Prison for Failing to Pay Employment Taxes and Violating Clean Water ActRead the Press Release
An Eastern Iowa businessman who failed to pay over employment taxes and violated the Clean Water Act by causing ethanol to be discharged into a tributary of the Maquoketa River, was sentenced today in federal court in Cedar Rapids, Iowa to 15 months in federal prison, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sean R. Berry of the Northern District of Iowa.
According to documents filed with the court, Randy Less was the majority owner, general partner, and general manager of Permeate Refining Inc., an ethanol production business in Hopkinton. Less had the responsibility to collect, truthfully account for, and pay over to the Internal Revenue Service (IRS) federal employment, social security, and Medicare taxes withheld from his employees’ wages. At the sentencing hearing, the district court found Less was responsible for $654,921 in tax loss to the government because he did not account for and pay over employment taxes for Permeate during 2009 through 2012. Less also knowingly discharged or caused to be discharged ethanol, a pollutant, from a point source into a water of the United States without a permit to do so.
“Those who violate their legal obligation to pay over employee withholdings are stealing from the U.S. Treasury and taking advantage of law-abiding businesses,” said Acting Deputy Assistant Attorney General Goldberg. “Employment tax enforcement will continue to be a top priority for the Tax Division.”
“Mr. Less’s failure to pay over employment taxes for years was an attempt to dodge his obligations to his employees and to the United States. Our system and our citizens depend upon employers like Mr. Less to be honest and pay what they owe in employment taxes,” said Acting U.S. Attorney Berry. “Additionally, his pollution of an Iowa waterway is a serious matter and this prosecution demonstrates our commitment to protecting our state’s environment.”
“Illegal discharges of unpermitted wastewater into rivers and streams threaten public health, wildlife and water quality,” said Assistant Special Agent in Charge Justin Oesterreich of EPA’s criminal enforcement program in Iowa. “Enforcing the laws that protect our waters from pollution is an important way EPA safeguards the health of communities nationwide and ensures a level playing field for businesses that follow the rules.”
“There are often multiple victims associated with employment tax fraud to include the government and the employees,” said Special Agent in Charge Karl Stiften of IRS Criminal Investigation. “Employers have a responsibility to withhold the proper amount of taxes and pay those taxes over to the IRS.”
In addition to the term of prison imposed, U.S. District Court Judge Leonard T. Strand ordered Less to serve two years of supervised release, fined Less $10,000 and ordered him to pay $8,673.30 in costs of prosecution.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Berry commended special agents of IRS Criminal Investigation, the FBI, the U.S. Postal Inspection Service, and the U.S. Environmental Protection Agency, who investigated the case, and Assistant U.S. Attorney Tim Vavricek of the Northern District of Iowa and Trial Attorney Matthew Hoffman 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.
Department of Justice Funds Law Enforcement Training to Combat Elder Financial ExploitationRead the Press Release
Nationally representative studies conclude that nearly 10 percent of older Americans have experienced some form of financial exploitation or fraud in the past year, with some experts asserting that financial exploitation is the most common form of elder abuse. With 10,000 Americans turning 65 each day, the population of Americans who likely will be exposed to elder fraud and abuse is growing significantly.
The financial loss to older Americans is estimated in the billions of dollars, without accounting for costs to family members and society. Many older victims of fraud or financial exploitation also experience a diminished quality of life and increased mortality.
The Department of Justice is making assertive efforts to interrupt the scourge of financial exploitation and fraud against older Americans. As part of these efforts, the Department is funding the National White Collar Crime Center (https://www.nw3c.org/) to enhance the ability of state and local law enforcement to respond effectively to complex elder fraud cases.
In announcing those efforts, Attorney General Jeff Sessions said:
“The Department of Justice is committed to protecting all Americans from fraud and exploitation. Few things are more despicable than defrauding vulnerable persons. We have to do a better job of addressing this problem. This training will equip our partners in state and local law enforcement to ensure that our seniors receive justice and the criminals who defraud them receive consequences. I applaud the communities chosen for this training and look forward to seeing their results.”
Through carefully crafted programs, the National White Collar Crime Center will provide training in eight selected communities, with up to 100 law enforcement officers per community, on Financial Crimes against Seniors. This training, developed by the National White Collar Crime Center, will reach up to 800 law enforcement officers, who in turn will share what they have learned with their fellow officers.
The eight communities selected for this highly sought after training are:
- Wilmington, Delaware (Delaware Department of Justice)
- Minneapolis/St. Paul, Minnesota (Minnesota Chiefs Association & Minnesota Sheriff’s Association)
- Denmark, Tennessee (Madison County Sheriff’s Office)
- Topeka, Kansas (State of Kansas Office of Attorney General)
- Hidalgo County, Texas (Hidalgo County Sheriff’s Office)
- Columbia, South Carolina (South Carolina Law Enforcement Division (SLED))
- Ada, Oklahoma (Council of Law Enforcement Education and Training (CLEET))
- King County, Washington (King County Prosecuting Attorney’s Office)
In addition, the Department of Justice, through its Elder Justice Initiative, is working on multiple other fronts to protect older Americans from financial exploitation and fraud, as well as other forms of elder abuse.
The Department continues to prosecute aggressively mass mailing fraud schemes, such as lottery and sweepstakes scams, many of which are international in nature and target seniors. The Department also launched 10 regional Elder Justice Task Forces across the country to enhance the ability of federal, state, and local authorities to work together to combat elder financial fraud and to pursue those nursing homes that provide grossly substandard care to their Medicare and Medicaid residents (https://www.justice.gov/elderjustice/task-forces).
The Department also actively supports state and local efforts to prevent and combat elder abuse by:
- Helping older victims and their families by connecting them to available resources, assistance, and information on its Elder Justice Website (https://www.justice.gov/elderjustice/victims-families-caregivers);
- Advancing understanding of elder abuse through projects like the Elder Abuse Prevention Demonstration Project (www.justice.gov/elderjustice/pr/national-institute-justice-awards-funding-study-elder-abuse);
- Raising public awareness of elder abuse and financial exploitation through the Elder Justice website, webinars, and public meetings (https://www.justice.gov/elderjustice/outreach); and
- Enhancing state and local efforts to combat and prevent elder abuse through the development and dissemination of training materials and resources for prosecutors, law enforcement, civil legal aid workers, victim specialists, and clinicians.
Check the Law Enforcement Webpage (https://www.justice.gov/elderjustice/law-enforcement-1) periodically for these and other materials as they become available. More information about the Department of Justice’s elder justice efforts can be found on its Elder Justice Website at https://www.justice.gov/elderjustice.
Strengthening the global response to intellectual property crimeRead the Press Release
NEW YORK, USA – Law enforcement officials, security and industry experts are meeting in New York to strengthen global partnerships against intellectual property (IP) crime.
Through a review of operational case studies, best practices and industry perspectives, the 11th annual International Law Enforcement IP Crime Conference also aims to shape effective enforcement strategies.
The two-day (28 and 29 August) event is co-hosted by INTERPOL, the US Immigration and Customs Enforcement (ICE), and the National Intellectual Property Rights Coordination Center (IPR Center), in partnership with UL (Underwriters Laboratories) and the International Anti-Counterfeiting Coalition (IACC).
“The US Immigration and Customs Enforcement’s National Intellectual Property Rights Coordination Center is committed to targeting the illegal importation of counterfeit goods that threaten health and safety, wreak havoc on the U.S. economy and fund other types of criminality,” said Acting ICE Deputy Director Peter T. Edge.
“We are attacking transnational criminal organizations at all points in the global supply chain by working with our international partners to identify foreign manufacturers engaged in piracy and dismantle their production capabilities,” added Mr Edge.
Nearly 600 participants from more than 60 countries will focus on evolving crime trends in areas such as illicit trafficking on the Internet, as well as on protecting the public from potentially harmful products.
In this respect, more than 420 tonnes of illicit pharmaceutical and medical products worth approximately USD 21.8 million were recently seized during Operation Heera in West Africa. INTERPOL coordinated the operation which saw law enforcement forces collaborate with multi-agency stakeholders in the region.
“Combining our efforts on a global scale by involving all stakeholders from the public and the private sectors is the only way to get ahead of the ever-advancing criminals who make significant profits distributing products that are potentially harmful to public health,” said INTERPOL's Executive Director of Police Services, Tim Morris.
“With illicit markets expanding globally, INTERPOL’s role is fundamental in facilitating international efforts aimed at dismantling the transnational organized crime groups involved in illicit trafficking,” added Mr Morris.
INTERPOL’s Illicit Goods and Global Health programme encompasses all industry sectors and products affected by this serious organized crime area. It works with stakeholders to address a range of IP crimes which include illicit medicines, electronics, food and drink.
IACC President Bob Barchiesi said: “Counterfeiters do not operate within the confines of country borders and neither should we. The IACC believes that real, practical, effective and impactful solutions can only be produced through international cooperation by all parties.”
“Transnational IP crime groups continue to produce dangerous products at an alarming rate and on an industrialized scale, adapting quickly to changing circumstances,” said Keith Williams, UL President and CEO.“The IP Crime Conference is a perfect example of one of the many tools that have been developed to stem the flow of illegal counterfeit products. This year’s conference will drive discussion about technologies and other solutions that diminish product counterfeiting,” added Mr Williams.
The last decade has seen the successful development of the International IP Crime Investigators College (IIPCIC), an INTERPOL initiative undertaken jointly with UL to further strengthen existing capacity building activities.
The online training platform is available in various languages and has evolved into a highly recognized learning tool for law enforcement globally, accessed by over 13,500 users from more than 150 countries.Florida Men Sentenced for Assault and Cross Burning Aimed at Intimidating an Interracial Couple Living Next DoorRead the Press Release
Today, United States District Judge Mary S. Scriven of the Middle District of Florida sentenced Thomas Herris Sigler, III, 46, and William A. Dennis, 56, to serve 33 and 21 months incarceration, respectively. Sigler and Dennis both pled guilty to civil rights violations for their roles in attacking and intimidating an interracial couple in Port Richey, Florida. A third co-defendant, Pascual Carlos Pietri also pled guilty to the same charge and was sentenced to 37 months imprisonment on March 23, 2016. All three of the co-defendant’s sentences are to be followed by three years of supervised release. A fourth co-conspirator is now deceased.
According to the evidence presented in court proceedings and documents, in September 2012 an interracial couple moved in next door to Sigler and Dennis. Sigler and Dennis began regularly harassing the African-American male neighbor shortly after the couple moved in with racial slurs and derogatory statements. Then in mid-October 2012, Sigler physically attacked the African-American neighbor, while Dennis looked on and prevented another neighbor from intervening.
On Halloween night, Sigler and Dennis attended a party at the home of the fourth co-conspirator. The men made a plan to intimidate the couple into moving from their residence by burning a cross in their front yard. Using wood and tools from the fourth co-conspirator, Sigler and Dennis constructed a wooden cross, and Dennis poured gasoline on the cross. Dennis and Pietri carried the cross to the victims’ front yard, leaned it against their mailbox, and Dennis instructed Pietri set the cross on fire, which he did.
“The victims were attacked and threatened in their own neighborhood and home because of their race,” said John M. Gore, Acting Assistant Attorney for Civil Rights. “Such violence and intimidation has no place in our society, the Justice Department is committed to protecting the rights of all citizens, and will continue to vigorously prosecute individuals who commit such atrocious acts of hate.”
“Acts of intimidation and violence perpetrated against people because of their race, ethnicity, color, or creed are reprehensible,” said Acting U.S. Attorney Stephen Muldrow. “Individuals and families should have the right to live wherever they choose, without fear. Acts of hatred such as this simply cannot be tolerated and we will investigate and prosecute those who commit these crimes.”
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Josephine W. Thomas and Simon A. Gaugush of the Middle District of Florida and Trial Attorney William E. Nolan of the Civil Rights Division’s Criminal Section.
Social Security Administration Employee Convicted of Bank Fraud and False StatementsRead the Press Release
A jury has convicted a Social Security Administration (SSA) employee of bank fraud and making false statements, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office, Regional Special Agent in Charge Floyd Sherman of the U.S. Department of Transportation (DOT) Office of Inspector General (OIG), and Special Agent in Charge Margaret Moore-Jackson of the SSA’s OIG Atlanta Field Division.
Darryl Williams, 52, of Tallahassee, Fla., was convicted on August 25, of one count of bank fraud and nine counts of making false statements to a federally insured financial institution for the purpose of obtaining loans and credit. Sentencing has been set for November 17, before Judge Mark E. Walker of the U.S. District Court for the Northern District of Florida.
The evidence at trial revealed that from approximately November 2010 to October 2016, Williams submitted a series of applications for loans and credit to Envision Credit Union (“Envision”), a financial institution with branches in Tallahassee, in which he repeatedly lied about his employment with the federal government, his pay grade, his salary and his job title. For example, evidence at trial demonstrated that Williams falsely claimed he was making over $115,000 annually, when, in fact, the highest federal government salary that he ever received was less than $60,000 and he was not employed by the federal government when he submitted several of the applications. In addition to these false statements, Williams submitted false bank statements and earnings and leave statements to Envision in support of some of his applications. The trial evidence demonstrated that Williams applied for more than $140,000 worth of loans between late 2010 and late 2016, and Envision relied upon Williams’ false representations and fake documents in granting these applications.
The case was investigated by the FBI’s Washington Field Office, the DOT-OIG, the SSA’s OIG Atlanta Field Division and Trial Attorney Peter Halpern of the Criminal Division’s Public Integrity Section. The case is being prosecuted by Trial Attorneys Heidi Boutros Gesch and Todd Gee of the Criminal Division’s Public Integrity Section.
Michigan Janitorial Company Owner Pleads Guilty to Obstructing the Internal Revenue Laws and Failing to File Tax ReturnRead the Press Release
A Detroit, Michigan resident, who owned a janitorial service company, pleaded guilty to obstructing the internal revenue laws and failing to file an individual tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the plea agreement and documents filed with the court, from approximately 2001, Braint N. Hall, 52, owned Braint N Hall Inc., which also did business as Sunrise Janitorial Service, Sunrise Janitorial and Maintenance Inc. and Detroit Industrial Cleaners Inc. In approximately 2009, the Internal Revenue Service (IRS) began auditing Hall for his failure to file individual income tax returns and to determine his income tax liability. Hall admitted that he lied during the audit in 2011 –providing false information about the ownership of his janitorial business, the business’ bank accounts and its client relationships. In an effort to conceal his ownership of the janitorial business, Hall admitted that he caused two relatives to establish nominee entities, which he controlled, to assume the business operations, employees, equipment and client contracts. Despite earning income from these businesses, Hall has not filed individual or corporate income tax returns since 2010.
Sentencing is scheduled for Dec. 12 before U.S. District Court Judge David M. Lawson. Hall faces a statutory maximum sentence of three years in prison on the obstruction count and one year in prison on the failure to file count. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Kenneth Vert and Jeffrey McLellan of the Tax Division, who are prosecuting the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Eastern District of Michigan for its substantial assistance.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former Social Security Administrative Law Judge Sentenced to Four Years in Prison for Role in $550 Million Social Security Fraud SchemeRead the Press Release
A former social security administrative law judge (ALJ) was sentenced today to four years in prison for his role in a scheme to fraudulently obtain more than $550 million in federal disability payments from the Social Security Administration (SSA) for thousands of claimants.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division, Special Agent in Charge Amy S. Hess of the FBI’s Louisville Field Division, Special Agent in Charge Tracey D. Montaño of the IRS Criminal Investigation (IRS-CI) Nashville Field Office and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Atlanta Regional Office made the announcement.
David Black Daugherty, 81, of Myrtle Beach, S.C., was sentenced by U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky, who also ordered Daugherty to pay restitution of over $93 million to the SSA and HHS. Daugherty pleaded guilty in May 2017 to two counts of receiving illegal gratuities.
According to admissions made as part of his guilty plea, beginning in 2004, Daugherty, as an ALJ assigned to the SSA’s Huntington, W. Va., hearing office, sought out pending disability cases in which Kentucky attorney Eric Christopher Conn represented claimants and reassigned those cases to himself. Daugherty then contacted Conn and identified the cases he intended to decide the following month and further solicited Conn to provide medical documentation supporting either physical or mental disability determinations. Without exception, Daugherty awarded disability benefits to individuals represented by Conn – in some instances, without first holding a hearing. As a result of Daugherty’s awarding disability benefits to claimants represented by Conn, Conn paid Daugherty an average of approximately $8,000 per month in cash, until approximately April 2011. All told, Daugherty received more than $609,000 in cash from Conn for deciding approximately 3,149 cases.
As a result of the scheme, Conn, Daugherty, and their co-conspirators obligated the SSA to pay more than $550 million in lifetime benefits to claimants based upon cases Daugherty approved for which he received payment from Conn.
Daugherty was indicted last year, along with Conn and Alfred Bradley Adkins, a clinical psychologist. The defendants were charged with conspiracy, fraud, false statements, money laundering and other related offenses in connection with the scheme.
Conn 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. Conn absconded from court ordered-electronic monitoring on June 2, and is considered a fugitive. He remains under indictment. On June 12, Adkins was convicted after a jury trial of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, one count of wire fraud and one count of making false statements. Adkins is scheduled to be sentenced on September 22.
The SSA-OIG, FBI, IRS-CI and HHS-OIG 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, with previous co-counsel including Assistant U.S. Attorney Trey Alford of the Western District of Missouri and Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.
11th International Law Enforcement Intellectual Property Crime ConferenceRead the Press Release
The 11th International Law Enforcement Intellectual Property (IP) Crime Conference will take place August 28th-29th, 2017, at the United Nations Headquarters in New York.
The Deputy Attorney General, Rod Rosenstein, will deliver a keynote speech on the second day of the conference. INTERPOL Washington Director, Wayne Salzgaber, and senior leadership will also attend.
This year’s event is co-hosted by INTERPOL, U.S. Immigration & Customs Enforcement (ICE) of the Department of Homeland Security, and the National Intellectual Property Rights Coordination Center (NIPRCC) in partnership with Underwriters Laboratories (UL) and the International AntiCounterfeiting Coalition (IACC).
The event will assemble senior police leaders, government officials, security and industry experts, and private-sector organizations from around the globe. Themed “Uniting Nations for the Next Decade,” the conference enables participants to share best practices and foster stronger relationships in the fight against transnational organized IP crime.
Two Ohio Businessmen Associated with Demolition Companies Pleaded Guilty to Tax ChargesRead the Press Release
Two former Cincinnati, Ohio residents pleaded guilty today to tax and structuring charges, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Vito Stramaglia, 49, owner of Vito Contracting Companies Inc., pleaded guilty to tax evasion and structuring cash transactions to avoid currency transactions reports. His associate, Hugo Oliver Morales-Santamaria, 31, pleaded guilty to structuring cash transactions to avoid currency transactions reports and conspiring to defraud the United States.
Since at least 2006, Stramaglia owned approximately 20 demolition businesses and other businesses, including the Ice Box, an ice cream dairy bar located in Cleves, Ohio, a car wash and an adult toy store and nightclub in Florida. Stramaglia had not filed an individual or corporate income tax return with the Internal Revenue Service (IRS) since 1992, until he learned of the IRS’s criminal investigation. Between 2008 and 2013, his demolition businesses earned over $12 million. Stramaglia admitted his failure to file returns and pay taxes during this period caused a loss to the U.S. Treasury of between $1 million and $2.5 million.
To hide his income from detection, Stramaglia placed his businesses in the names of nominees, to include Santamaria. Santamaria opened bank accounts in his name, while Stramaglia controlled the funds in the accounts. Both Stramaglia and Santamaria wrote, signed, and cashed numerous checks and made cash withdrawals in amounts less than $10,000 on consecutive days to evade bank-reporting requirements. In 2011 and 2012 alone, they engaged in cash transactions that exceeded $1.4 million. To further conceal his use of funds, Stramaglia also provided false social security numbers to banks and car dealers when forms were prepared and filed with the IRS reporting cash transactions in excess of $10,000 and provided false employer identification numbers to contractors with whom he did business. In all, Stramaglia used more than $3.4 million from his businesses to purchase in others’ names over 20 luxury vehicles and at least four residences.
Stramaglia and Santamaria also paid day laborers in cash and failed to withhold or report payroll taxes. Santamaria also admitted to paying himself a weekly salary from the demolition company bank accounts, and paying personal expenses including food, lodging, clothing, gym memberships, and tuition for private school out of the business bank accounts, all in an effort to avoid paying personal income taxes.
District Judge Timothy Black stated that sentencing would be scheduled in 70 days. Both Stramaglia and Santamaria face a statutory maximum sentence of five years in prison on each count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Richard M. Rolwing of the Tax Division, who is prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Indiana Animal Control Officer Pleads Guilty to Interstate Diversion of Veterinary DrugsRead the Press Release
The Acting Superintendent of Animal Control and Parks for the city of Whiting, Indiana, pleaded guilty today to diverting prescription veterinary antibiotics that were the property of the city’s animal shelter, to a resident of Chicago whom he knew to be involved in dog fighting activities, announced Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division, Acting United States Attorney for the Northern District of Indiana Clifford D. Johnson, and USDA, OIG Special Agent-in-Charge Anthony V. Mohatt.
Martin Jakubowski, 48, of Whiting, Indiana, pleaded guilty today before Judge John E. Martin of the Northern District of Indiana to one count of violating the Federal Food, Drug, and Cosmetic Act by introducing a prescription veterinary drug into interstate commerce without the lawful written or oral order of a licensed veterinarian. Sentencing is set for November 17.
“This prosecution further demonstrates our commitment to end unlawful animal fighting and to bring to justice those who unlawfully participate in this criminality,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division.
“In partnership with the Department of Justice, animal fighting is an investigative priority for the USDA-OIG,” said OIG Special Agent-in-Charge Anthony V. Mohatt. “We will aggressively pursue and dedicate resources to assist in the criminal prosecution of those who participate in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms, and gambling.”
According to admissions made in connection with his guilty plea, Jakubowski oversaw the operation of the city of Whiting’s animal control program and animal shelter. While acting in that role, he gave prescription veterinary antibiotics to Pedro Cuellar to drug his dogs. Cuellar recently pleaded guilty to a federal dog fighting conspiracy charge in the District of New Jersey. The drugs had been purchased by the city animal shelter and were intended to treat two sick shelter cats.
Jakubowski also admitted that at various times between approximately 2011 and 2016, he housed dogs for Cuellar in buildings used by the animal shelter for periods of time extending from three days to more than a year. One of the dogs had scarring consistent with scars on dogs used in fights. Jakubowski also gave two pit bull-type dogs from the city’s animal shelter to Cuellar without standard adoption paperwork, knowing that Cuellar intended to transfer the dogs to other people. Jakubowski also admitted to his own prior involvement in a “roll” dog fight in 2004. A “roll” is a dog fight staged for the purpose of assessing the fighting characteristics of a dog or dogs, rather than for wagering purposes, and is generally stopped by the handlers before serious injuries result.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.” To date, 98 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government.
This part of Operation Grand Champion was investigated by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge Anthony Mohatt. The government is represented by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section, and Assistant U.S. Attorney Toi Denise Houston.
Owner of Arecibo Aquarium Business Pleads Guilty to Two Federal Lacey Act Felonies for Illicit Trafficking of Protected CoralsRead the Press Release
Aristides Sanchez, a resident of Arecibo, Puerto Rico, pleaded guilty today to two felony violations of the federal Lacey Act for collecting, purchasing, falsely labeling, and shipping protected marine invertebrate species as part of an effort to subvert Puerto Rican law designed to protect corals and other reef species, the Department of Justice announced.
Sanchez was the owner of the Arecibo-based saltwater aquarium business, Wonders of the Reef Aquarium. A large part of the business was devoted to the sale of native Puerto Rican marine species that are popular in the saltwater aquarium trade. Sanchez sent live specimens to customers in the mainland United States and foreign countries by commercial courier services. One of the most popular items that Sanchez sent off-island was an organism from the genus Ricordea. These animals are known as “rics,” “polyps,” or “mushrooms” in the aquarium industry. Members of the genus form part of the reef structure and spend their adult lives fastened in place to the reef. These animals are colorful in natural light, but what makes them particularly interesting to aquarium owners is that they “glow” under the UV lights that are typically used in high-end saltwater aquariums.
“Coral reefs surrounding the island of Puerto Rico are some of the most valued and fragile natural resources in the region,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “The Division will continue to work with its enforcement partners to prosecute those who illegally harm the marine environment for commercial gain.”
“We will continue to prosecute those who exploit our protected marine life for financial gain,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “We appreciate the support of U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration agents in this investigation.”
“This investigation, serves as a fine example of ongoing joint investigative efforts related to the entire span of the marine life trade,” said Resident Agent in Charge David Pharo of the U.S. Fish and Wildlife Service. “Whether responsibility lies as the initial harvester, wholesaler, retailer or a public aquarium, the USFWS and partner agencies stand ready to investigate the matter and bring those responsible for poaching our nations sensitive marine life resources to justice.”
“Our partnerships are vital to helping ensure the protection and sustainability of living marine resources. This investigation is another great example of how successful partnerships lead to effective results,” said Deputy Director Logan Gregory of National Oceanic and Atmospheric Administration’s Office of Law Enforcement. “Investigating and bringing to justice those who exploit protected marine life is vital in helping to ensure a healthy ocean.”
It is illegal to harvest Ricordea, zoanthids, and anemones in Puerto Rico if the specimens are going to be sent off-island or otherwise sold commercially, nor is there a permit available to do so. Sanchez personally collected some of the Ricordea and other reef creatures that he sold off-island. On multiple occasions, he would accompany another person and they would snorkel from the shoreline in search of Ricordea. Because Ricordea are attached to the reef substrate, Sanchez would utilize a chisel to break off the animals, and in doing so, take chunks of the reef with him. At other times, Sanchez would purchase the Ricordea from other sources, knowing or suspecting that the specimens had been harvested illegally.
In order to cover up the nature of his shipments and to avoid detection from governmental inspection authorities, Sanchez would falsely label each shipment. The false labeling was one of identification whereby Sanchez would refer to living marine organisms as “pet supplies,” “aquarium supplies,” “LED lights,” or similar inanimate objects on shipping labels and invoices. At times, he used a fake name to cover his actions.
From January 2013 to March 2016, Sanchez sent or caused to be sent at least 130 shipments of falsely labeled marine species that were illegally harvested in the waters of Puerto Rico. While there is some variation in the price of Ricordea depending on coloration, size, and other factors, the retail value of Ricordea shipped by Sanchez typically ranges from $25 to $50 per item. From on or about January 7, 2013, through on or about March 16, 2016, the retail value of the falsely labeled and/or unlawfully harvested marine invertebrates shipped personally by Sanchez, or on his behalf with his knowledge, was between $800,000 and $1,200,000.
Sanchez is scheduled to be sentenced on December 20, 2017.
This case was investigated as part of Operation Rock Bottom and Operation Borinquen Chisel by Special Agents of the U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration with support from the USFWS Inspectors. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section along with Assistant U.S. Attorney Carmen Marquez of the U.S. Attorney’s Office for the District of Puerto Rico.
Two Texas Men Plead Guilty to Federal Hate Crime for Assaults Based on Victim’s Sexual OrientationRead the Press Release
Nigel Garrett, 21, and Cameron Ajiduah, 18, pleaded guilty today to assaulting men 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 the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Division announced.
According to the plea agreement signed by Garrett on January 19, 2017, defendants Garrett, Anthony Shelton and Chancler Encalade used Grindr, a social media dating platform for gay men, to arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted the victim, and made derogatory statements to the victim for being gay. The defendants brandished a firearm during the home invasion, and stole the victim’s property, including his motor vehicle.
Included in a separate plea agreement signed by Ajiduah on February 7, 2017, defendants Ajiduah, Garrett, and Shelton used the same scheme on a different victim, including restraining the victim and covering his eyes with tape, verbally berating him for his sexual orientaion, and physically assaulting him.
A federal grand jury previously returned an eighteen-count indictment against Ajiduah, Shelton, Garrett, and Chancler Encalade including charges of 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 victim’s sexual orientation during four home invasions in Plano, Frisco, and Aubrey, Texas, between January 17 and February 7, 2017.
“The Justice Department will not tolerate hate crimes against any individual based on sexual orientation,” said Acting Assistant Attorney General John Gore. “Hate crimes are violent crimes, but also attack the fundamental principles of the United States. The Justice Department will continue to aggressively investigate and prosecute hate crimes.”
"Garrett and Ajiduah invaded homes, robbed and assaulted their victims, and particularly horrendous, targeted their victims based on the victim’s sexual orientation,” said Acting U.S. Attorney Brit Featherston. “In response to such a hate crime, let it be known that law enforcement will leave no stone unturned to catch and prosecute the likes of these criminals to the fullest extent of the law."
Garrett and Ajiduah face a maximum statutory penalty of life in prison and a $250,000 fine for their guilty plea for the hate crime charge.
The investigation is being conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Plano Police Department, and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
Three Men Plead Guilty to Conspiracy to Violate the Lacey Act by Illegally Trafficking Threatened Alligator Snapping TurtlesRead the Press Release
The Department of Justice’s Environment and Natural Resources Division, the United States Attorney’s Office for the Eastern District of Texas, and the U.S. Fish and Wildlife Service announced today that Travis Leger and Rickey Simon, both of Sulphur, Louisiana, and Jason Leckelt of Wilburton, Oklahoma, have all pled guilty to conspiracy to violate the Lacey Act by illegally trafficking alligator snapping turtles.
Alligator snapping turtles are the largest freshwater turtles in the world and can grow to weigh more than 200 pounds with a lifespan of more than 100 years. The turtles are designated as threatened with statewide extinction under Texas State Law, which strictly prohibits anyone from taking, capturing, transporting, or selling these turtles, or attempting to do so. The turtles are also protected under Louisiana State Law, which makes it illegal to sell or barter for the turtles. The Lacey Act makes it a federal crime to engage in the interstate trafficking of wildlife taken in violation of state wildlife protection laws.
“Those who choose to exploit our precious wildlife resources threaten the existence of these rare reptiles,” said Acting U.S. Attorney Brit Featherston. “Protection of the turtles and the prevention of diseases that may spread by these actions make these prosecutions vital to the health of our natural wildlife.”
In April 2017, Leger, Leckelt, and Simon were charged in a six-count indictment. The conspiracy charged all defendants with illegally taking more than 60 large alligator snapping turtles during their multiple fishing trips to Texas in the spring and summer of 2016, and also with transporting the turtles back to a property in Sulphur, Louisiana, where they intended to sell the turtles. In July 2016, Federal agents seized about 30 large alligator snapping turtles from ponds located at a defendant’s property in Sulphur, Louisiana, pursuant to a federal search warrant.
As part of his guilty plea, Travis Leger admitted to selling a live, illegally taken, 171-pound turtle for $1,000 and another live, illegally taken, 168-pound turtle for $500 in May and June of 2016. The turtles were later seized by U.S. Fish and Wildlife Agents from the buyer and are currently being cared for at a private facility. In sum, Leger admitted that the market value of all the turtles that he caught illegally in Texas and then sold in Louisiana during the course of the conspiracy was between $40,000 and $95,000. Leger also agreed to forfeit all of the turtles seized from his property in Sulphur, Louisiana, and will permit the U.S. Fish and Wildlife Service to return to the property, drain the ponds, and seize all remaining alligator snapping turtles. Similarly, Jason Leckelt, who is Leger’s half-brother, admitted that the market value of the turtles that he illegally personally caught in Texas and sold in Louisiana during the course of the conspiracy was between $15,000 and $40,000.
Finally, Rickey Simon admitted that his role in the conspiracy included selling a 120-pound alligator snapping turtle, illegally caught in Texas, to an undercover U.S. Fish and Wildlife Agent in May of 2016. In addition, Mr. Simon admitted that he obstructed justice by deleting text messages from his cell phone prior to being interviewed by a Special Agent from the U.S. Fish and Wildlife Service during the execution of the search warrant at the Sulphur property in July 2016. Simon deleted the text messages from his cell phone after Travis Leger called and warned him that game wardens were coming to the Sulphur property to take the turtles out of the ponds. Simon also admitted that he subsequently made false statements to the Special Agent during the execution of the search warrant at the Sulphur property by denying that he had ever fished for alligator snapping turtles in Texas.
The defendants all face up to a maximum five years in prison and a $250,000 fine for the conspiracy convictions.
Assistant U.S. Attorney Joseph R. Batte of the Eastern District of Texas and Senior Trial Attorney David P. Kehoe of the Department of Justice, Environmental Crimes Section, prosecuted the case. The case is being investigated by the U.S. Fish and Wildlife Service, the Louisiana Department of Wildlife and Fisheries, and the Texas Parks and Wildlife Department.
German Ship Management Company and Corporate Vessel Owner Indicted for Falsification of Pollution RecordsRead the Press Release
A federal grand jury in Portland, Maine, returned a nine-count indictment today charging MST Mineralien Schiffarht Spedition Und Transport GmbH (MST) and Reederei MS “Marguerita” GmbH & Co. Geschlossene Investment KG (Reederei) with failing to keep accurate pollution control records and falsifying records, the Justice Department announced.
The charges stem from the falsification of records in 2016 and 2017 designed to cover up overboard discharges of oily mixtures and machinery space bilge water from the Liberian-flagged cargo vessel, M/V Marguerita. On at least eight occasions between September 2016 and June 2016, the M/V Marguerita entered United States waters and ports with a false and misleading Oil Record Book available for inspection by the U.S. Coast Guard. The Oil Record Book failed to accurately record transfers and discharges of oily wastewater on the vessel.
The vessel’s management company, MST Mineralien Schiffarht Spedition Und Transport, and the vessel’s owner, Reederei MS “Marguerita,” both of Germany, are charged with failing to maintain an accurate oil record book as required by the Act to Prevent Pollution from Ships, a U.S. law which implements the International Convention for the Prevention of Pollution from Ships, commonly known as MARPOL. The companies were also charged with falsification of records with the intent to impede, obstruct, or influence inspections and examinations of the M/V Marguerita by the U.S. Coast Guard.
An indictment is merely an accusation and defendants are presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the Coast Guard Investigative Service. The case is being prosecuted by John Cashman and Shane Waller of the Justice Department’s Environmental Crimes Section.
INTERPOL Washington, ICE seek public's help to identify unknown female suspect in child sex abuse and exploitation caseRead the Press Release
WASHINGTON – INTERPOL Washington, the U.S. National Central Bureau (USNCB), and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) are urging the public to help identify an unknown suspect wanted for questioning in an unsolved case of child sexual abuse and exploitation.
Investigators have been unable to identify the suspect using traditional investigative means and request the public’s assistance. All tips will remain confidential. Members of the public should not attempt to apprehend the suspect personally.
In addition to public appeals, investigators have been distributing the suspect’s photo to fellow law enforcement agencies, and to the National Center for Missing & Exploited Children, in a unified effort to identify the suspect and rescue the child.
At the request of ICE-HSI, INTERPOL Washington caused the issuance of an INTERPOL Blue Notice for the unidentified subject. Blue Notices are published by INTERPOL, the International Criminal Police Organization, for the purpose of tracing, locating, and seeking information on persons of interest in criminal investigations. They are disseminated to law enforcement officials in all 190 member countries of INTERPOL.
The suspect is being added to ICE's Operation Predator App, which allows users to receive alerts
about wanted predators, to share the information with friends via email and social media tools, and to provide information to ICE by calling or submitting an online tip.Anyone with information about this suspect is urged to contact the agency though the app; or by
calling the HSI Tip Line, which is staffed 24-hours a day at 1-866-347-2423 from the U.S. &
Canada, or 1-802-872-6199 from anywhere in the world, or by submitting an online tip form.
Individuals should not attempt to apprehend the suspect personally.The smartphone app is part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers.
For additional information about wanted suspected child predators, download ICE’s Operation Predator smartphone app or visit the online suspect alerts page.
Florida Salesman Sentenced to Prison for Tax EvasionRead the Press Release
A Fort Lauderdale, Florida, resident was sentenced to 12 months and one day in prison for tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Thomas Daly, 53, evaded paying taxes on more than $1.5 million in income that he earned from 2002 to 2015. Except for the 2007 tax year, Daly has not filed an income tax return since 2002. He worked for a Fort Lauderdale company selling hurricane-resistant windows to residential homeowners in South Florida. In August 2009, the Internal Revenue Service (IRS) notified Daly of its intent to levy his wages because of his failure to pay taxes. To obstruct the IRS’s collection efforts, Daly established his own business, South Florida Home Marketing Inc. (SFHM), and changed his employment status from an employee to an independent contractor. Daly listed himself as the director of SFHM and opened a business bank account in its name. Due to Daly’s change in employment status, his employer paid SFHM directly and the IRS’s attempts to levy Daly’s wages were thwarted.
From approximately August 2009 through April 2017, Daly used SFHM’s bank account to pay for personal expenses, including rent, cigars, international travel, entertainment, his girlfriend’s cosmetic surgery, jewelry, and a boat. He also falsely classified numerous personal expenses as business expenses on the memo line of the checks drawn on the SFHM bank account. Daly admitted that he made these false entries with the intent to claim false business expense deductions and evade the assessment of his income taxes. Daly admitted that his actions caused a tax loss of more than $351,241.
In addition to the term of prison imposed, U.S. District Judge Kenneth A. Marra ordered Daly has been ordered to serve two years of supervised release and to pay $459,481.03 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Charles M. Edgar, Jr. and Michael C. Boteler of the Tax Division, who prosecuted the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Statement of the September 11th Victim Compensation Fund on the Office of Inspector General’s ReportRead the Press Release
The September 11th Victim Compensation Fund (VCF) acknowledges the work done by the Department’s Office of the Inspector General (OIG), as described in its report released today, entitled “Audit of the Department of Justice’s Administration of the September 11th Victim Compensation Fund.”
Today’s VCF has undergone many positive changes since OIG concluded its substantive review, including new leadership and updated regulations that implement changes as a result of the Dec. 18, 2015, reauthorization of the program by Congress and the President for an additional five years. That reauthorization, which extended the application period until Dec. 18, 2020, and appropriated $4.6 billion in additional funding, was a demonstration of Congress’s faith in the program and a recognition both of its success and of the enormity of the work that remains to be done. The OIG’s report similarly recognizes the substantial work done by the VCF, finding that each of its recommendations has already been met by the VCF and deeming each one closed and requiring no further follow-up.
“While no amount of money can alleviate the losses suffered as a result of the events of Sept. 11, 2001, the VCF plays a critical role in providing some measure of relief to those who continue to suffer,” said VCF Special Master Rupa Bhattacharyya. “The VCF today is reauthorized and reinvigorated in its efforts to serve the 9/11 community, and has taken substantial steps to realign the program to promptly, accurately, consistently, and fairly decide the claims already pending and the claims still anticipated to be filed. The VCF is grateful for OIG’s collaborative approach to the audit, and for the time and effort that OIG expended in reviewing the Fund’s operations through February of 2016, when it completed its substantive review.”
Since 2011, the VCF has awarded over $2.8 billion in compensation to responders to the attacks in New York City, at the Pentagon, and at the Shanksville site, as well as to those who lived, worked, or traveled through areas of lower Manhattan that were exposed to debris and toxins generated by the attacks and their aftermath. The VCF continues to receive and review claims from those who have suffered, and has over $4 billion in funds remaining.
To date, the VCF has made more than 21,000 eligibility decisions, finding more than 16,900 claimants eligible for compensation. The VCF had also made award determinations on more than 13,000 of those claims, including over 11,000 responders. More than 4,000 of these claimants suffer from one or more cancers related to their 9/11 exposure, while the remainder suffer from other, often times disabling, physical injuries.
The VCF was created to provide compensation for any individual (or a personal representative of a deceased individual) who suffered physical harm or was killed as a result of the terrorist-related aircraft crashes of Sept. 11, 2001 or the debris removal efforts that took place in the immediate aftermath of those crashes. The original VCF operated from 2001-2004. On Jan. 2, 2011, President Obama signed into law the James Zadroga 9/11 Health and Compensation Act of 2010 (Zadroga Act). Title II of the Zadroga Act reactivated the September 11th Victim Compensation Fund. The reactivated VCF opened in October 2011 and was authorized to operate for a period of five years, ending in October 2016. On Dec. 18, 2015, President Obama signed into law a bill reauthorizing the James Zadroga 9/11 Health and Compensation Act of 2010, which included the reauthorization of the VCF.
For additional information about how to file a claim, please visit the “How to File a Claim” page on the VCF’s website at www.vcf.gov; information on VCF policies and procedures can be obtained at https://www.vcf.gov/pdf/VCFPolicy.pdf. If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555.
Mylan Agrees to Pay $465 Million to Resolve False Claims Act Liability for Underpaying EpiPen RebatesRead the Press Release
Pharmaceutical companies Mylan Inc. and Mylan Specialty L.P. have agreed to pay $465 million to resolve claims that they violated the False Claims Act by knowingly misclassifying EpiPen as a generic drug to avoid paying rebates owed primarily to Medicaid, the Justice Department announced today. Mylan Inc. and Mylan Specialty L.P. are both wholly owned subsidiaries of Mylan N.V., which is headquartered in Canonsburg, Pennsylvania.
“This settlement demonstrates the Department of Justice’s unwavering commitment to hold pharmaceutical companies accountable for schemes to overbill Medicaid, a taxpayer-funded program whose purpose is to help the poor and disabled,” said Acting Assistant Attorney General Chad A. Readler of the Department of Justice’s Civil Division. “Drug manufacturers must abide by their legal obligations to pay appropriate rebates to state Medicaid programs.”
“Mylan misclassified its brand name drug, EpiPen, to profit at the expense of the Medicaid program,” said Acting United States Attorney William D. Weinreb. “Taxpayers rightly expect companies like Mylan that receive payments from taxpayer-funded programs to scrupulously follow the rules. We will continue to protect the integrity of Medicaid and ensure a level playing field for pharmaceutical companies. ”
Congress enacted the Medicaid Drug Rebate Program to ensure that state Medicaid programs were not susceptible to price gouging by manufacturers of drugs that were available from only a single source. It therefore subjected such single-source, or brand name drugs, to a higher rebate that is payable to Medicaid and that increases to the extent the price of the drug outpaces the rate of inflation. In contrast, generic drugs originating from multiple manufacturers are subject to lower rebates that, at least until recently, were not subject to inflationary adjustments.
The settlement resolves the government’s allegations that Mylan, by erroneously reporting EpiPen as a generic drug to Medicaid despite the absence of any therapeutically equivalent drugs, was able to demand massive price increases in the private market while avoiding its corresponding rebate obligations to Medicaid. Between 2010 and 2016, Mylan increased the price of EpiPen by approximately 400 percent yet paid only a fixed 13 percent rebate to Medicaid during the same period. The government further alleged that although Mylan was well-aware that its drug was not a generic, it nevertheless claimed generic status for EpiPen in the Medicaid program to avoid paying a higher rebate.
The settlement resolves allegations brought in a lawsuit filed under the whistleblower provisions of the False Claims Act, which permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The whistleblower in this case was the pharmaceutical manufacturer, Sanofi-Aventis US LLC. It will receive approximately $38.7 million as its share of the federal recovery.
Mylan has also entered into a corporate integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires, among other things, an independent review organization to annually review multiple aspects of Mylan’s practices relating to the Medicaid drug rebate program.
“Our five-year corporate integrity agreement requires intensive outside scrutiny to assess whether Mylan is complying with the rules of the Medicaid drug rebate program,” said Gregory E. Demske, Chief Counsel to the Inspector General for the U.S. Department of Health and Human Services. “In addition, the CIA requires individual accountability by Mylan board members and executives.”
The government’s intervention in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with various state attorneys general, the Department of Health and Human Services Office of Inspector General, and the Medicaid Fraud Control Units.
The case is captioned United States ex rel. Sanofi-Aventis US LLC v. Mylan Inc., et al., No. 16-CV-11572 (D. Mass.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Justice Department Announces Actions to Strengthen Public Safety in Indian CountryRead the Press Release
The Justice Department today announced recent developments under the Task Force on Crime Reduction and Public Safety to strengthen law enforcement and public safety in Indian country, including the continued expansion of a program that gives tribes access to federal crime data, addressing the opioid crisis, serving victims of sex trafficking, and strengthening investigations into crimes against children.
“We have listened to the concerns of tribal law enforcement, who are dealing with public safety challenges including rising violent crime, the opioid crisis, and human trafficking, often with limited resources and manpower,” said Associate Attorney General Rachel Brand. “The Justice Department is committed to a strong government-to-government partnership with tribal nations, including sharing valuable crime data and supporting Native American victims of crime.”
Listening sessions with tribal law enforcement in May and June clarified some of the most pressing public safety issues in Indian country. The following actions will strengthen efforts to address these challenges.
The Department of Justice is expanding the Tribal Access Program (TAP) for National Crime Information in Fiscal Year 2018. TAP provides federally-recognized tribes access to national crime information databases for both civil and criminal purposes. TAP supports the selected tribes in analyzing their needs for national crime information and provides access, technology and training.
In its first two years, the department has worked collaboratively with tribal governments on the TAP program to help resolve long-standing public safety issues in Indian country, such as the inability to access national crime information databases.
Any federally-recognized tribe interested in joining TAP is invited to submit an expression of interest between Aug.16, 2017 and Sept. 15, 2017. For more information about TAP and instructions on submitting a statement of interest, please visit www.justice.gov/tribal/tribal-access-program-tap.
The Department of Justice and the Department of the Interior are hosting two upcoming Opioid Awareness Outreach meetings in August. The Drug Enforcement Administration (DEA), Executive office for the U.S. Attorneys (EOUSA), and the United States Attorney’s Offices (USAOs) in Alaska and Eastern California, in conjunction with the Department of the Interior’s Bureau of Indian Affairs Office of Justice Services (OJS), are sponsoring and co-hosting these important events. The outreach meetings will commence immediately after tribal consultations on Aug.16 in Anchorage, Alaska and on Aug. 29 in Sacramento, California. The opioid awareness outreach will include presentations from DEA on the signs of opioid abuse, especially heroin and fentanyl awareness; from BIA’s OJS on Narcan deployment initiatives in Indian country; and from the USAOs on federal drug laws. These discussions are part of an inter-departmental initiative to address the opioid crisis in Indian country.
“The developments announced today by Attorney General Sessions are vitally important to aiding tribal governments in dealing with and seeking solutions to serious drug, sex trafficking, and crimes against children issues afflicting their communities,” said acting Assistant Secretary of the Department of the Interior for Indian Affairs Michael S. Black. “I urge tribal leaders and their police departments to take advantage of upcoming opportunities to provide their input on and learn more about ways of addressing these critical areas of public safety in Indian country. I also want to thank Attorney General Sessions and DOJ for their work in supporting BIA and tribal law enforcement efforts to strengthen public safety in these vulnerable communities.”
The Justice Department’s Office of Justice Programs Diagnostic Center, a training and technical assistance resource, is expanding its presence in Indian country. At the request of interested tribes, the Diagnostic Center provides customized assistance on a wide range of public safety issues. Among the issues being addressed in current tribal engagements include information sharing in tribal justice systems and jurisdictional coordination among tribal and local police departments. For more information about the Diagnostic Center, please see www.ojpdiagnosticcenter.org.
The Office for Victims of Crime (OVC) is developing programs in partnership with Native organizations in Seattle, Chicago, and Albuquerque to provide urban American Indian and Alaska Native victims of sex trafficking with access to culturally appropriate, comprehensive victim services. Funded under OVC’s Project Beacon grant award program, these organizations will work collaboratively with state and local human trafficking task forces, as well as tribal communities, to ensure that American Indian and Alaska Native victims have an opportunity to receive a full complement of services designed to aid them in their recovery and healing from the experience of being trafficked.
Associate Attorney General Brand added: “We are committed to partnering with tribal nations, Native American organizations and others to meet the particular needs of Native American victims of sex trafficking, and to end the scourge of human trafficking more broadly.”
The Department of Justice’s National Indian Country Training Initiative, together with the FBI’s Indian Country Crimes Unit, recently co-sponsored an Indian Country Homicide and Child Abuse Training Seminar. The seminar was attended by FBI Special Agents, Assistant United States Attorneys, Bureau of Indian Affairs Agents and tribal law enforcement from across the country. The training covered a variety of topics meant to strengthen investigations into crimes against children, such as crime scene management, evidence collection, forensics, interviews, and dealing with victims of violent crime and sexual abuse.
The Attorney General remains committed to combatting violent crime and maintaining public safety in tribal lands, and will continue to pursue partnerships in support of American Indian and Alaska Native communities.
Florida Man Pleads Guilty to Hate Crime and Weapons of Mass Destruction Charges for Attempting to Attack Florida SynagogueRead the Press Release
James Gonzalo Medina pleaded guilty today to a federal hate crime for attempting to attack an Aventura, Florida synagogue, and to a charge of attempting to use a weapon of mass destruction, announced Attorney General Jeff Sessions and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
During the plea proceedings, Medina admitted that in March and April 2016, he planned to conduct a firearms or explosives attack on the Aventura Turnberry Jewish Center. Medina took steps to prepare for this attack including conducting surveillance of the Jewish Center. On April 29, 2016, Medina took possession of what he believed to be an explosive device, obtained from a Southern Florida Joint Terrorism Task Force agent, and approached the Jewish Center on foot with the device in hand, intending to commit the attack.
"Acts of bigotry and hatred are evil and have no place in our society," Attorney General Sessions said. "One of the top priorities of this Department of Justice is reducing violent crime, and you can be sure that this includes hate crime. We will not tolerate this repugnant lawlessness, and we will be vigilant in prosecuting hate crime offenders to the fullest extent of the law. I want to thank the Federal Bureau of Investigation, the Southern Florida Joint Terrorism Task Force, and all of the Department of Justice attorneys and staff who worked to bring this criminal to justice, and I assure every American that the Department of Justice is committed to protecting their rights."
“Today’s guilty plea demonstrates how hate often motivates acts of domestic terror,” stated Acting U.S. Attorney Greenberg for the Southern District of Florida. “Prosecuting terrorism and violent crimes inspired by a victim’s race, religion, ethnicity, sexual preference, or gender identity remains a top priority for the U.S. Attorney’s Office for the Southern District of Florida and our dedicated partners at the Federal Bureau of Investigation.”
A sentencing hearing has not yet been set.
This matter was investigated by the Federal Bureau of Investigation and Southern Florida Joint Terrorism Task Force. It is being prosecuted by Assistant U.S. Attorneys Marc Anton and Michael Thakur of the Southern District of Florida, with the assistance of the Civil Rights Division’s Special Litigation Counsel Steve Curran and National Security Division’s Trial Attorney Taryn Meeks.
Construction Company Sentenced for Clean Air Act Violations in Puerto RicoRead the Press Release
A construction company was sentenced today to a fine of $1.5 million dollars and three years of probation for violating the federal Clean Air Act, announced the Justice Department.
AIREKO Construction Company failed to comply with the asbestos National Emission Standards for Hazardous Air Pollutants during the illegal removal of asbestos containing materials from the Minillas North Tower in May 2012, according to court documents. As part of a plea agreement with the government, AIREKO was also ordered to pay $172,020 to cover a baseline medical examination and follow up medical examination for victims exposed to asbestos fibers in the aftermath of the illegal activity.
“This prosecution reflects the commitment of the Department of Justice to enforce federal clean air laws,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “We will continue to hold companies such as AIREKO Construction accountable in order to protect the lives and safety of the public.”
“The Clean Air Act requires that construction companies follow specific protocols designed to safely remove asbestos prior to any renovation or demolition activity, so as not to expose anyone to the risk of deadly respiratory diseases; and AIREKO Construction Company failed to do so by exposing those who worked at Minillas to asbestos materials,” said Rosa Emilia Rodríguez-Vélez, US Attorney for the District of Puerto Rico. “The US Attorney’s Office will continue to work with all victims who were exposed to the asbestos.”
“Asbestos exposure can cause cancer, lung disease and other serious respiratory diseases,” said Special Agent-in-Charge Tyler Amon for the Environmental Protection Agency’s Criminal Investigation Division in New York. “In this case, AIREKO Construction avoided hiring trained and certified asbestos abatement professionals. AIREKO did the work 'on the cheap', willfully putting workers and others at risk. We will not allow businesses to cut corners on environmental protection at the expense of people’s health.”
Over the weekend of Saturday, May 11, 2012, to Sunday, May 13, 2012, a sub-contractor of AIREKO removed asbestos containing material from the ceiling of the 9th floor of Minillas North Tower. The asbestos containing material was removed without following any of the Asbestos Work Practice Standards required by federal regulation. A significant portion of the asbestos containing material was taken from the 9th floor and was placed in the trash area behind the building. Approximately 550 square feet of asbestos-containing stucco ceiling material was removed from the 9th floor. The sub-contractor was hired to do general demolition and on Saturday, May 12, 2012, and Sunday, May 13, 2012, were working within the scope of their employment and at least, in part, for the benefit of Defendant AIREKO.
The asbestos containing material was discovered by AIREKO employees on Monday May 14, 2012, and AIREKO failed to immediately report the release of the asbestos to the National Response Center (NRC) as required by law. The EPA initiated an investigation into the release and received sampling results later that week showing asbestos throughout the building and the agency issued a notice to the Puerto Rico Building Authority that then closed the building. Clean-up of the Minillas North Tower took approximately one year.
Congress has found that medical science has determined that there is no minimal level of exposure to asbestos which is safe for unprotected persons. The government identified approximately 450 persons who were exposed to asbestos fibers between the illegal removal and the order by the Public Building Authority to close the building.
AIREKO Vice President Edgardo Albino previously pleaded guilty to failing to notify immediately the NRC of the release of asbestos. Mr. Albino was sentenced to pay a fine and serve a six month term of probation.
The investigation was conducted by the Environmental Protection Agency Criminal Investigation Division in New York. The cases were prosecuted by Howard P. Stewart, Senior Litigation Counsel Environmental Crimes Section of the Department of Justice and Assistant United States Attorney Carmen M. Marquez.
Members of Columbus, Ohio Clique of MS-13 Arrested and ChargedRead the Press Release
Thirteen individuals alleged to be members and associates of MS-13 were arrested in Central Ohio and Indiana this morning. Attorney General Jeff Sessions, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI, Detroit Field Office Director Rebecca Adducci of U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, Sheriff Dallas Baldwin of Franklin County and Chief Kim Jacobs of Columbus Police announced the indictment that was unsealed following the arrests today.
Federal charges were filed against a total of 15 alleged MS-13 members. Ten were charged by a federal grand jury with conspiracy to commit extortion, conspiracy to commit money laundering and use of a firearm during a crime of violence in an indictment returned on July 27. Five others were charged in criminal complaints with reentering the U.S. after deportation. Two of the 15 remain fugitives.
“With more than 10,000 members across 40 states, MS-13 is one of the most dangerous criminal organizations in the United States today," said Attorney General Sessions. "MS-13 members have killed children and pregnant women, extorted immigrant-owned businesses, and trafficked underage girls to sell them for sex. President Trump has ordered the Department of Justice to reduce crime and take down transnational criminal organizations, and we will be relentless in our pursuit of these objectives. Today's charges are our next step toward making this country safer by taking MS-13 off of our streets for good.”
MS-13, formally La Mara Salvatrucha, is a multi-national criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, Guatemala and Honduras. The organization’s leadership is based in El Salvador, where many of the gang’s high-ranking members are imprisoned.
In 2012, the U.S. government designated MS-13 as a “transnational criminal organization.” It is the first and only street gang to receive that designation. MS-13 has become one of the largest and most violent criminal organizations in the U.S., with more than 10,000 members and associates operating in at least 40 states, including Ohio. In Ohio and elsewhere in the U.S., MS-13 is organized into “cliques,” which are smaller groups of MS-13 members and associates acting under the larger mantle of the organization and operating in a specific region, city or part of a city.
The indictment alleges that 10 defendants – members and associates of the Columbus clique of MS-13 – conspired to commit extortion through the use of threatened or actual force, violence or fear to intimidate their victims into paying money to the defendants and their co-conspirators. Many of the proceeds were sent, usually by wire transfer and often through intermediaries, to MS-13 members and associates in El Salvador and elsewhere. The money was then used to promote and facilitate the criminal activities of MS-13 in El Salvador and the U.S.
As part of the alleged conspiracy, the defendants and their co-conspirators unlawfully obtained extortion proceeds to be used to, among other things, buy items that MS-13 uses to engage in criminal activity, such as cellular phones, narcotics and weapons; provide financial support and information to MS-13 members, including those incarcerated in El Salvador and the U.S., as well as those who have been deported; and aid families of deceased MS-13 members.
The 10 defendants charged in the indictment are:
Name
Also Known As
Age
City
Jose Martin Neftali Aguilar-Rivera
Momia, Pelon
32
Columbus, Ohio/ Indianapolis, Ind.
Pedro Alfonso Osorio-Flores
Smokey
38
Columbus, Ohio
Juan Jose Jiminez-Montufar
Chele Trece
33
Columbus, Ohio
Isaias Alvarado
Cabo
44
Columbus, Ohio
Cruz Alberto-Arbarngas
Cruzito
30
Columbus, Ohio
*Jose Manuel Romero-Parada
Russo
22
Fugitive – Indianapolis, Ind.
Jose Salinas-Enriquez
Martillo
32
Dayton, Ohio
Jorge Cazares
Veneno
37
Columbus, Ohio
Jose Ramiro Aparicio-Olivares
Flaco
42
Columbus, Ohio
*Nelson Alexander Flores
Mula
46
Fugitive – whereabouts unknown
Conspiracy to commit extortion and conspiracy to commit money laundering are each crimes punishable by up to 20 years in prison. Brandishing a firearm in relation to a crime of violence carries a sentence of at least seven years in prison, consecutive to any other sentence imposed in the case.
The five defendants charged with immigration offenses in criminal complaints are:
Name
Also Known As
Age
City
Antonio Galdamez-Figueroa
Pinochio
29
Columbus, Ohio
Juan Pablo Flores-Castro
Duende
29
Columbus, Ohio
Jorge Alberto Landaverde
Grenas
33
Columbus, Ohio
Juan Jose Alvarenga-Alberto
Sailen
27
Columbus, Ohio
Marvin Otero-Serrano
Vaca
31
Columbus, Ohio
Illegally re-entering the U.S. after having been previously deported is a crime punishable by up to two years in prison.
Attorney General Sessions and U.S. Attorney Glassman commended the investigation of this case by the FBI, ICE, Columbus, Police and Franklin County Sheriff’s Office, and the assistance of the Ohio Bureau of Criminal Investigation and Homeland Security Investigations, as well as Assistant U.S. Attorneys Brian J. Martinez and Jessica H. Kim, who are prosecuting the case.
An indictment or criminal complaint merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
If you are a victim of the alleged crimes, or have additional information about MS-13, please call the FBI hotline at 614-849-1765. Callers can remain anonymous.
Long-Running Clean Water Act Dispute Ends, Duarte Agrees to Pay Civil Fines, Restore Streams and WetlandsRead the Press Release
Bringing to a close several years of litigation, John Duarte and Duarte Nursery Inc. have agreed to pay a large civil penalty and preserve and restore creeks, streams, and wetlands to resolve violations of the Clean Water Act on property located in Tehama County, California, the Justice Department announced today.
Duarte has agreed to pay $1.1 million in civil penalties and mitigation for 22 acres of disturbed streams and wetlands and to permanently protect creeks on the property that are connected to the Sacramento River. The agreement follows a federal court determination in 2016 finding Duarte liable for violating the Clean Water Act and will redress illegal "ripping" of federally-protected streams and wetlands. The agreement allows Duarte to return the vast majority of the site to productive use and allows him to seek future determinations concerning jurisdictional waters at the site.
“Today's agreement affirms the Department of Justice's commitment to the rule of law, results in meaningful environmental restoration, and brings to an end protracted litigation,” said Jeffrey H. Wood, Acting Assistant Attorney General for the Justice Department's Environment and Natural Resource Division. “We are pleased to reach this agreement that serves the public interest in enforcement of the Clean Water Act and deterrence of future violations.”
“The Corps is pleased that this long-standing enforcement action has finally been resolved,” said Michael Jewell, the Chief of the Regulatory Division for the U.S. Army Corps of Engineers’ Sacramento District. “We encourage members of the public to contact the Corps prior to engaging in activities that are regulated under the Clean Water Act. The Corps is always willing to talk to the public about the Regulatory Program and to provide information on permit requirements, jurisdictional determinations, wetland delineations, and any other aspects of the Program.”
This case stems from activities Duarte conducted after he recently purchased property that had laid fallow and unfarmed for more than 20 years. Duarte bought the property in 2012 for $5 million and shortly thereafter sold most of it for approximately $8 million, retaining 450 acres for his own use. Even before the purchase, Duarte received detailed maps showing the location of federally-protected streams and wetlands which took up less than 10 percent of his remaining property.
Despite the small portion of property that was subject to the Clean Water Act, Duarte hired a contractor to conduct "ripping" throughout the entire 450 acres, including in streams and wetlands, even though Duarte's own environmental consultant had warned him that he would be subject to significant penalties for ripping without a permit from the Army Corps of Engineers. This resulted in the ripping of flowing streams, running creeks, and in protected wetlands. In 2016, a federal court rejected Duarte's "plowing" defense based on the facts of this case, finding that no plowing had occurred anywhere on the site for at least 24 years and that (as intended) the ripping activity converted areas of water to dry land. The settlement agreement reached today secures a significant penalty for these violations, while providing fairness for farmers and other landowners who comply with the applicable laws.
In a recent pre-trial brief, the United States gave assurances that this case is not (and will not be used as) a pretext for federal prosecution of farmers who engage in normal plowing on their farms. No federal dredge-or-fill permit is required for plowing as defined in the regulations, and no such permit is required for discharges from "normal farming ... activities" (including plowing) if they are part of an established (i.e., ongoing) farming operation and not for the purpose of converting federally protected waters to new uses. Those protections for farmers remain in the law today and will continue to be recognized.
The proposed consent decree, lodged in the U.S. District Court in Sacramento, is subject to a 30-day comment period and final court approval. A copy of the proposed consent decree is available on the Justice Department Web site at www.usdoj.gov/enrd/Consent_Decrees.html.
Former Department of Defense Contractor Pleads Guilty to Piloting Cargo Plane While IntoxicatedRead the Press Release
A former Department of Defense contractor pleaded guilty today to piloting a cargo flight from Osan Air Base, South Korea to Yakota Air Base, Japan, while under the influence of alcohol.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Chief Master Sergeant Christopher J. VanBurger of the Air Force Office of Special Investigations (AFOSI) made the announcement.
Daniel R. Criss, 61, of Mims, Fla., pleaded guilty to one count of operating a common carrier (aircraft) under the influence of alcohol while employed by the Armed Forces outside of the U.S., within the special maritime and territorial jurisdiction of the U.S. The plea was entered before U.S. Magistrate Judge Daniel C. Irick of the Middle District of Florida.
According to admissions made in connection with his plea, on July 14, 2015, Criss was employed by a private company that contracted with the Department of Defense’s U.S. Transportation Command to deliver cargo. On that date, Criss was the pilot-in-command of a Boeing 747 aircraft transporting cargo and a flight crew from Osan Air Base, South Korea to Anchorage, Alaska, with a stopover in Yokota Air Base, Japan. Criss admitted that when he arrived at Osan Air Base that morning at about 10:00 a.m., he was already under the influence of alcohol. Before take-off, Criss’ co-pilots observed that he was having difficulty writing down the air traffic control clearance and discussed their concerns with Criss, who responded that he was tired and had not slept well. Throughout the flight, Criss remained in command of the aircraft despite his level of intoxication. Criss admitted that as the aircraft neared Yokota air space and began its descent, he missed numerous radio calls, lost situational awareness and ran an incorrect landing checklist. Criss also admitted that, upon landing, he took control of the aircraft and taxied it to the runway at a higher than normal rate of speed, and, once the aircraft arrived at the ramp, he fell asleep, woke up and fell asleep again.
According to admissions made in connection with his plea, Criss’ co-pilots, who believed that Criss was experiencing a medical emergency, called for assistance at about 2:00 p.m. Medical personnel that attended to Criss noticed that Criss was slurring his speech and had an odor of alcohol on his breath. At about 3:20 p.m., blood drawn from Criss and tested for alcohol revealed an estimated blood alcohol concentration (BAC) of .144%. Medical personnel who examimed this and a second blood test estimated that Criss’ BAC was between 0.152% and 0.146% at the time he last operated the aircraft.
AFOSI investigated this case. Trial Attorneys Sasha N. Rutizer and Mona Sahaf of the Human Rights and Special Prosecutions Section of the Justice Department’s Criminal Division are prosecuting the case.
Virginia Business Owners Charged with Tax EvasionRead the Press Release
A federal grand jury in the Western District of Virginia returned an indictment charging two business owners with tax evasion and conspiring to structure currency transactions, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Jeffrey and Karen Dalton owned Blue Ridge Stainless Inc. (BRS), a subcontracting business that provided labor to renovate large retail department and grocery stores, and operated it out of their home in Hillsville, Virginia. The Daltons allegedly filed their 2009 through 2014 personal tax returns with the Internal Revenue Service (IRS) reporting the income they earned from BRS, but failed to pay the taxes, penalties and interest owed. The indictment alleges that despite an IRS revenue officer repeatedly contacting the Daltons over a period of years about their delinquent taxes and pending IRS liens, they refused to pay their outstanding tax liability, used nominees to conceal their ownership of property and filed false documents with the IRS. After the IRS levied the Dalton’s personal bank accounts, they allegedly used funds from the BRS business bank account to start a cattle business and pay for their children’s wedding expenses.
The indictment also charges Jeffery and Karen Dalton with conspiring to withdraw cash from the BRS business bank account, in increments less than $10,000, to evade federal bank-reporting requirements. According to the indictment, they withdrew more than $250,000 in this piecemeal fashion.
An indictment merely alleges that crimes have been committed and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Jeffery and Karen Dalton each face a statutory maximum sentence of five years in prison on both the tax evasion and conspiracy charge. They also face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Daniel McGraw and Sean Beaty of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Sues Glendale, AZ, for Violating Employment Rights of Arizona Air National Guard MemberRead the Press Release
The Justice Department filed a complaint today alleging that the City of Glendale, Arizona, violated the employment rights of Arizona Air National Guard member Captain Rebecca Cruz under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). Captain Cruz has served the United States honorably as a member of the Arizona Air National Guard since 2007.
According to the complaint, filed in the United States District Court for the District of Arizona, Captain Cruz’s military service was a motivating factor in Glendale’s decision to terminate her employment. The Department claims that, in March 2016, the City of Glendale hired Captain Cruz as a Management Analyst in its Public Works Department, knowing at that time that she also served as a member of the Guard. Approximately two months after she was hired, the Guard notified Cruz that she would need to attend military training for a new Air National Guard job classification to which she was being assigned. Cruz provided her military orders conveying that schedule to the City of Glendale, and six days later she was fired.
“In order to provide the security our nation depends on, members of our National Guard, like Captain Cruz, are often called away from their civilian jobs,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “These brave men and women must be able to fulfill their military obligations without fear that they will lose their jobs in the process, and the Department of Justice is here to ensure those protections.”
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations.
This lawsuit seeks damages equal to the amount of Cruz’s lost wages and benefits caused by the City of Glendale’s failure to comply with USERRA, as well as liquidated damages for what the Department alleges is Glendale’s willful violation of USERRA. It also seeks an order requiring the City of Glendale to reinstate Cruz to her prior position, to comply with all provisions of USERRA in the future, and to pay all related litigation fees.
This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by the Employment Litigation Section of the Department of Justice’s Civil Rights Division, which works collaboratively with the DOL to protect the jobs and benefits of National Guard servicemembers upon their return to civilian life.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on DOL’s website at www.dol.gov/vets/programs/userra/main.htm.
Statement by Attorney General Jeff Sessions on President Trump Directing the Administration to Use All Appropriate Authority to Respond to the Opioid EmergencyRead the Press Release
Attorney General Jeff Sessions today issued the following statement on President Trump directing the administration to use all appropriate authority to respond to the opioid emergency:
“I applaud President Trump for his leadership in taking this drastic and necessary measure to confront an opioid crisis that is devastating communities around the country and ripping families apart. The death toll of this horrific epidemic reached 60,000 people in 2016, but as horrible as it is to think of that number, it is worse when we look past the staggering statistic and see our children, our moms and dads, sisters and brothers, friends and co-workers. This nation has never seen overdose deaths anywhere close to these numbers, and for each death, many more suffer debilitating addictions.
“Just last week the Department of Justice announced its new Opioid Fraud and Abuse Detection Unit and we continue to follow the President’s lead and use every tool we have to combat this deadly crisis.”
Louisiana Company Pays More Than $100,000 to U.S. Workers to Resolve Discrimination ClaimsRead the Press Release
Justice Department announced today that Barrios Street Realty LLC, a company based in Lockport, Louisiana, has paid approximately $108,000 to 12 U.S. workers pursuant to a settlement with the department. The payments are part of a March 2016 settlement that resolved claims that Barrios discriminated against U.S. workers in violation of the Immigration and Nationality Act (INA).
In its investigation leading up to the settlement, the department determined that from 2014 through 2015, the company and its agent, Jorge Arturo Guerrero Rodriguez, failed to consider or improperly rejected U.S. workers who applied for positions as sheet metal roofers or laborers, and then sought to fill the vacancies with foreign workers under the H-2B visa program. According to the department, the company’s petition for foreign workers falsely claimed that it could not find qualified U.S. workers. Refusing to consider or hire qualified U.S. workers because of their citizenship violates the anti-discrimination provision of the INA.
The settlement required Barrios to pay $30,000 in civil penalties and up to $115,000 in back pay to compensate U.S. workers who were denied employment because of the company’s reliance on H-2B visa workers. After entering the settlement, the department determined that 12 U.S. workers were entitled to receive back pay totaling approximately $108,000, and the company made the final payments to the workers last week.
“The Department of Justice will not tolerate employers misusing visa programs to discriminate against U.S. workers,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We will vigorously prosecute claims against companies that place U.S. workers in a disfavored status.”
Civil Rights Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
Former Jail Administrator Sentenced for Depriving Inmate of Medical CareRead the Press Release
Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division and Acting U.S. Attorney Mark A. Yancey of the Western District of Oklahoma jointly announced that a former McClain County, Oklahoma, Jail Administrator, Wayne Barnes was sentenced today by U.S. District Court Judge Stephen P. Friot to 51 months in prison and ordered to pay a $10,000 fine for his conviction on a charge that he violated an inmate’s civil rights by depriving him of medical care, resulting in the inmate’s death. Barnes pleaded guilty to the charge on February 9, 2017.
Barnes was indicted by a grand jury in October 2016 and charged with a one-count federal criminal civil rights violation arising out of the death of K.W., a detainee who was housed at the jail in June 2013. The indictment alleged that K.W. was an insulin-dependent diabetic who received neither insulin nor medical evaluation between June 16, 2013 until the afternoon of June 19, 2013. On that day, according to the indictment, Barnes observed K.W. lying on the floor of his cell, unresponsive. Only then did Barnes direct a corrections officer to call emergency medical services, who found K.W.’s pupils fixed and dilated upon their arrival. K.W. died on June 21, 2013, having never regained consciousness. The indictment alleged that Barnes knew that K.W. had a serious medical condition and willfully failed to provide him with necessary medical care, and that his failure to do so resulted in K.W.’s death.
At his change of plea hearing, Barnes admitted that he was made aware between June 16 and June 19, 2013, that K.W. had been booked into the McClain County Jail, and that K.W. represented that he was a Type-1 diabetic who required insulin. Barnes further admitted that he failed to obtain medical care for K.W. and that, in doing so, he willfully denied K.W.’s Constitutional right to medical care. Barnes also admitted that his failure to obtain the required medical care resulted in K.W.’s death.
“Every law enforcement officer in this country takes an oath to uphold the United States Constitution,” said Acting Assistant Attorney General Gore. “The Constitution ensures that persons detained pending the adjudication of charges against them are entitled to necessary medical care. This sentence affirms the importance of that right and underscores the continuing commitment of the Civil Rights Division to hold officers accountable to their oaths.”
“Inmates deserve and the law requires that adequate medical care be provided by penal institutions,” said U.S. Attorney Yancey. “Denying necessary medical treatment is inhuman and unconstitutional.”
This case was investigated by the Oklahoma City Division of the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Julia Barry of the Western District of Oklahoma and Deputy Chief Kristy Parker of the Civil Rights Division of the Department of Justice.
Return to Rule of Law in Trump Administration Marked by Increase in Key Immigration StatisticsRead the Press Release
The Executive Office of Immigration Review today released data on orders of removal, voluntary departures, and final decisions for the first six months of the Trump Administration.
The data released for Feb. 1, 2017 – July 31, 2017 is as follows:
- Total Orders of Removal [1]: 49,983
- Up 27.8 percent over the same time period in 2016 (39,113)
- Total Orders of Removal and Voluntary Departures [2]: 57,069
- Up 30.9 percent over the same time period in 2016 (43,595)
- Total Final Decisions [3]: 73,127
- Up 14.5 percent over the same time period in 2016 (63,850)
Pursuant to President Trump’s Jan. 25 Executive Order, “Border Security and Immigration Enforcement Improvements,” the Department of Justice mobilized over one hundred existing Immigration Judges to Department of Homeland Security (DHS) detention facilities across the country. Over 90 percent of these cases have resulted in orders requiring aliens to depart or be removed from the United States. The Justice Department has also hired 54 additional Immigration Judges since President Trump took office, and continues to hire new Immigration Judges each month.
In addition to carrying out the President’s Executive Order, the Justice Department is also reviewing internal practices, procedures, and technology in order to identify ways in which it can further enhance Immigration Judges’ productivity without compromising due process.
[1] An “order of removal” by an Immigration Judge results in the removal of an illegal alien from the United States by the Department of Homeland Security.
[2] Under an order of “voluntary departure”, an illegal alien agrees to voluntarily depart the United States by a certain date. If the illegal alien does not depart, the order automatically converts to an order of removal.
[3] A “final decision” is one that ends the proceeding at the Immigration Judge level such that the case is no longer pending.
- Total Orders of Removal [1]: 49,983
National Security Division Announces Launch of Enhanced Website to Assist Victims of Overseas TerrorismRead the Press Release
The Justice Department’s Office of Justice for Victims of Overseas Terrorism (DOJ/OVT), which helps U.S. citizen victims and their families harmed in terrorist attacks abroad, launched its enhanced website today. The enhanced website makes it easier than ever for victims and their families to access DOJ/OVT’s resources. The announcement was made by Acting Assistant Attorney General for National Security Dana J. Boente and DOJ/OVT Director Heather Cartwright.
“The Office of Justice for Victims of Overseas Terrorism serves as an advocate for our citizens impacted by overseas terrorism as they navigate foreign criminal justice systems in pursuit of accountability,” said Acting Assistant Attorney General Boente. “OVT’s enhanced website will make it easier to connect Americans with crucial services and information in the aftermath of an overseas terrorist attack. We remain committed to providing these critical resources to American victims of overseas terrorism and their families.”
According to DOJ/OVT Director Heather Cartwright, “providing information to U.S. citizen victims of overseas terrorist attacks and their loved ones is a critical part of our office’s mission. Public outreach through our website is one important way of making information accessible to victims. We enhanced our website with a focus on the needs of victims and their families, and it highlights the help that we and our U.S. government partners provide to support U.S. victims of overseas terrorism. We hope this redesigned website is informative and helpful to victims, survivors and all those who are interested in the work of this office.”
In this era of global terrorist attacks affecting Americans, the enhanced website focuses on helping victims at different stages in the attack aftermath learn about available resources, whether they live at home in the U.S. or abroad. The redesigned website includes:
- Emergency contacts for the immediate crisis as well as resources for the longer term, especially during foreign criminal justice proceedings, which can now be quickly accessed to gain clarity during what can be a confusing and overwhelming experience;
- Web referrals so that users can explore and connect with the DOJ/OVT’s partner agencies to seek other assistance available from the U.S. government;
- An online “toolbox” that provides more in-depth descriptions of DOJ/OVT services, legal definitions, victims’ rights, general information about terrorism abroad and common victim questions. These features afford victims and their families a simplified starting point when they are seeking answers to difficult questions;
- A newly-designed interactive map that contains information about DOJ/OVT’s efforts worldwide; and,
- Press releases highlighting major developments in the criminal justice response to overseas terrorist attacks with U.S. victims will continue to be posted to the website.
DOJ/OVT was established on May 6, 2005, by then-Attorney General Alberto Gonzales and is now part of the Justice Department’s National Security Division, which was created in 2006. DOJ/OVT’s primary responsibility to Americans who are victims of overseas terrorism is to help navigate foreign criminal justice systems. DOJ/OVT advocates for U.S. victims and their families to obtain information, be present during foreign terrorism prosecutions, and have a voice during the proceedings, as permitted by foreign law. DOJ/OVT further advocates for overseas terrorism victims’ voices to be heard throughout the world.
For more information on the important work done by DOJ/OVT every day, please visit www.justice.gov/nsd-ovt. If you are a U.S. citizen victim of international terrorism or a victim’s family member and you seek information on foreign criminal justice proceedings, DOJ/OVT can assist you. Please contact DOJ/OVT at [email protected].
Statement by Attorney General Sessions on the City of Chicago’s Lawsuit Against the U.S. Department of JusticeRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the city of Chicago’s lawsuit against the U.S. Department of Justice:
“No amount of federal taxpayer dollars will help a city that refuses to help its own residents.
“This administration is committed to the rule of law and to enforcing the laws established by Congress. To a degree perhaps unsurpassed by any other jurisdiction, the political leadership of Chicago has chosen deliberately and intentionally to adopt a policy that obstructs this country’s lawful immigration system. They have demonstrated an open hostility to enforcing laws designed to protect law enforcement — Federal, state, and local — and reduce crime, and instead have adopted an official policy of protecting criminal aliens who prey on their own residents. This is astounding given the unprecedented violent crime surge in Chicago, with the number of murders in 2016 surpassing both New York and Los Angeles combined. The city’s leaders cannot follow some laws and ignore others and reasonably expect this horrific situation to improve.
“The Mayor complains that the federal government’s focus on enforcing the law would require a ‘reordering of law enforcement practice in Chicago.’ But that’s just what Chicago needs: a recommitment to the rule of law and to policies that rollback the culture of lawlessness that has beset the city.
“This administration will not simply give away grant dollars to city governments that proudly violate the rule of law and protect criminal aliens at the expense of public safety. So it’s this simple: Comply with the law or forego taxpayer dollars.”
Justice Department Announces Plans to Advance Forensic ScienceRead the Press Release
Deputy Attorney General Rod J. Rosenstein announced two new Department of Justice projects today at the International Association for Identification’s conference in Atlanta, Georgia. This reinforces the Justice Department’s commitment to sound forensic science practices and to increasing the capacity and effectiveness of forensic science providers by helping to improve the reliability of forensic analysis.
“The Department of Justice believes that when the adversarial American legal system functions as intended – including through the support of trained forensic examiners and legal practitioners educated on best forensics practices – justice is advanced,” said Deputy Attorney General Rosenstein. “The Department is fully committed to examining and strengthening forensic science despite efforts in the courtroom and elsewhere to reject reliable and admissible forensic evidence.”
The projects announced today are aimed at ensuring that the testimony of the Justice Department’s forensic examiners is consistent with sound scientific principles and just outcomes. The Department will develop Uniform Language for Testimony and Reports to give clear guidance to what the Department’s forensics examiners may discuss in a courtroom, and direct prosecutors to follow the same guidelines. The Department will also develop a new forensic examiner testimony-monitoring program to ensure compliance with the uniform language standards once they are adopted.
Deputy Attorney General Rosenstein also announced that Attorney General Jeff Sessions has tapped Ted Hunt, a former state prosecutor and member of the National Commission on Forensic Science (which sunset in April), to serve as the Department’s Senior Advisor on Forensics. In addition to Mr. Hunt’s decades of first-hand experience investigating and prosecuting cases with forensic evidence, he has long been involved with state, local, and federal efforts to improve forensic science through committees, commissions, and training programs.
“It speaks strongly of the Attorney General’s commitment to the interdisciplinary nature of forensic science that he has appointed Mr. Hunt to serve in this position,” said Deputy Attorney General Rosenstein. “I am directing him to coordinate closely with our federal, state, local, and tribal forensic science practitioners and to identify ways to best continue ongoing outreach to these stakeholders.”
E-Commerce Company and Top Executive Agree to Plead Guilty to Price-Fixing Conspiracy for Customized Promotional ProductsRead the Press Release
An e-commerce company and its top executive have agreed to plead guilty to conspiring to fix prices for customized promotional products sold online to customers in the United States. Zaappaaz Inc. (d/b/a WB Promotions Inc., Wrist-Band.com and Customlanyard.net) and its president Azim Makanojiya agreed to plead guilty to a one-count criminal violation of the Sherman Act.
Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division, Acting U.S. Attorney Abe Martinez and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Division made the announcement.
According to the felony charges filed today in the U.S. District Court for the Southern District of Texas in Houston, the conspirators attended meetings and communicated in person and online. The investigation has revealed that the conspirators used social media platforms and encrypted messaging applications, such as Facebook, Skype and Whatsapp, to reach and implement their illegal agreements. Specifically, the defendants and their co-conspirators agreed, from as early as 2014 until June 2016, to fix the prices of customized promotional products sold online, including wristbands and lanyards. In addition to agreeing to plead guilty, Zaappaaz has agreed to pay a $1.9 million criminal fine.
“As today’s charges show, criminals cannot evade detection by conspiring online and using encrypted messaging,” said Acting Assistant Attorney General Andrew Finch. “In addition, today’s charges are a clear sign of the Division’s commitment to uncovering and prosecuting collusion that affects internet sales. American consumers have the right to a marketplace free of unlawful collusion, whether they are shopping at retail stores or online.”
“Schemes like the defendants’ cause financial harm to consumers who purchase goods and services and to businesses who sell goods and services in compliance with the laws of the United States,” said Acting U.S. Attorney Abe Martinez. “The United States will continue to investigate and prosecute individuals and businesses who seek to gain an illegal advantage.”
“The FBI stands ready to protect consumers from unscrupulous business practices,” said Special Agent in Charge Perrye K. Turner. “Antitrust laws help protect the competitive process for the benefit of all consumers.”
Makanojiya is charged with price fixing in violation of the Sherman Act which carries a maximum sentence of 10 years in federal prison and a maximum fine of $1 million for individuals. The maximum fine for an individual 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.
Both defendants have agreed to cooperate with the Antitrust Division’s ongoing investigation. The plea agreements are subject to court approval.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online promotional products industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section with the assistance of the FBI’s Houston Field Office. Anyone with information on price fixing or other anticompetitive conduct in the customized promotional products industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
District Court Enters Permanent Injunction Against Utah Pharmacy and Its Executives to Prevent Distribution of Adulterated, Misbranded and Unapproved New DrugsRead the Press Release
The U.S. District Court for the District of Utah entered a consent decree of permanent injunction against defendants Isomeric Pharmacy Solutions LLC (Isomeric), William O. Richardson, who serves as its Chief Executive Officer, Rachael S. Cruz, who serves as its Chief Sales Officer, and Jeffery D. Brown, who serves as its Chief Operating Officer. The injunction permanently enjoins the defendants from distributing adulterated, misbranded and unapproved new drugs in violation of the federal Food, Drug, and Cosmetic Act.
The Department filed a complaint in the U.S. District Court for the District of Utah on July 27, at the request of the U.S. Food and Drug Administration (FDA), alleging, among other things, that the defendants failed to adequately address insanitary conditions that resulted in contamination in certain processing areas used by Isomeric.
According to the complaint, Isomeric manufactures, labels, and distributes sterile drugs, including injectable hormones, injectable corticosteroids, and ophthalmic drops. The pharmacy distributes most of its drugs directly to physicians throughout the United States. According to the complaint, Isomeric has a history of manufacturing injectable and ophthalmic drug products under conditions that fall short of the minimum requirements to ensure safety and quality.
“Compounding pharmacies must produce their drugs in a way that does not potentially endanger patient safety,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work actively with FDA to ensure that compounding pharmacies comply with the law and provide safe products that doctors and patients can rely on.”
Isomeric initiated three voluntary recalls in 2016, and a fourth in 2017 following an FDA inspection. The 2016 recalls involved three types of injectable suspension drugs: triamcinolone diacetate 40 mg/mL, methylprednisolone acetate/lidocaine HCl 40/10 mg/mL, and betamethasone acetate/betamethasone sodium phosphate. On April 6, 2017, Isomeric recalled all lots of non-expired drug products intended to be sterile that the pharmacy compounded and distributed nationwide between Oct. 4, 2016, and Feb. 7, 2017.
According to the complaint, FDA documented a number of insanitary conditions during a 2017 inspection of Isomeric. FDA observed, following a review of the pharmacy’s own records, that Isomeric repeatedly recovered several types of microorganisms in the air and on surfaces used for sterile processing, demonstrating that products manufactured in those areas were prepared, packed, or held under insanitary conditions, as alleged in the complaint. The complaint further alleges that Isomeric released for distribution over 100 batches of purportedly sterile finished products that had been processed in one or more areas containing particles in excess of the pharmacy’s “action limit” for particulates.
“Isomeric endangered the public health by manufacturing injectable drugs under poor conditions that compromised their required sterility and put patients at risk,” said FDA Commissioner Scott Gottlieb, M.D. “We will continue taking strong enforcement actions against compounders who violate the Drug Quality and Security Act and put patients at risk by failing to produce sterile drugs in compliance with the law.”
In addition, according to the complaint, FDA found deviations of current good manufacturing practice requirements in the pharmacy’s sterile drug manufacturing operations. As alleged in the complaint, Isomeric failed to thoroughly review and investigate unexplained discrepancies and the failure of a batch or any of its components to meet any of its specifications, whether or not the batch was already distributed. In one example, according to the complaint, Isomeric failed to conduct an adequate investigation of black particles observed in vials of product that had “passed” visual inspection.
“The Food, Drug, and Cosmetic Act is designed to protect patients from unsafe drugs,” said U.S. Attorney John W. Huber for the District of Utah. “Today’s enforcement action demonstrates our commitment to ensuring that when deficiencies in drug compounding are identified, they are properly addressed. We will take whatever actions are necessary to reduce the risk to patients who rely on such drugs.”
The defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction. As part of the resolution, defendants agree not to resume manufacturing, holding or distributing drugs until they comply with specific remedial measures set forth in the order entered by the Court. Among other requirements, the defendants must hire a qualified independent expert to recommend and direct the implementation of corrective actions. The decree also specifically requires that defendants establish and implement procedures to ensure a thorough investigation of any unexplained discrepancy or failure in a drug batch, regardless of whether the batch has been distributed.
The government is represented by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Sandra L. Steinvoort of the U.S. Attorney’s Office for the District of Utah, with the assistance of Senior Counsel Claudia J. Zuckerman of FDA’s Office of the Chief Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Utah, visit its website at https://www.justice.gov/usao-ut.
Attorney General Jeff Sessions Delivers Remarks at Briefing on Leaks of Classified Materials Threatening National SecurityRead the Press Release
I want to thank Director Coats for being here. Together, we lead the National Insider Threat Task Force that was established in 2011. This task force has an important role to play and one we are taking seriously. Progress has been made and we intend to reach a new level of effectiveness.
First, let me say I strongly agree with the President and condemn in the strongest terms the staggering number of leaks undermining the ability of our government to protect this country. Just yesterday, we saw reports in the media about conversations the President had with foreign leaders. No one is entitled to surreptitiously fight their battles in the media by revealing sensitive government information. No government can be effective when its leaders cannot discuss sensitive matters in confidence or to talk freely in confidence with foreign leaders.
We are here today to talk about the dramatic growth in the number of unauthorized disclosures of classified national security information in the past several months. This includes leaks to both the media and in some cases even unauthorized disclosures to our foreign adversaries. Referrals for investigations of classified leaks to the Department of Justice from our intelligence agencies have exploded. In the first six months of this Administration, DOJ has already received nearly as many criminal referrals involving unauthorized disclosures of classified information as we received in the last three years combined.
Classified information, by definition, is information that if disclosed would do harm to our national security. As Director Coats will discuss, these leaks are incredibly damaging to our intelligence mission and capabilities. Simply put—these leaks hurt our country. All of us in government can do better. The first requirement is for discipline within all agencies of the government. To prevent these leaks, every agency and Congress has to do better.
We are taking a stand. This culture of leaking must stop.
Furthering this goal, today, we are here to announce some of the steps being taken and underway by the National Insider Threat Task Force to ensure that this government’s first priority—to protect this country and her citizens—is not undermined by the very people who have been entrusted to protect it.
While the Department of Justice does not discuss ongoing investigations or confirm specific matters, it is important for the American people—and for those who might be thinking about leaking sensitive or classified information—to know that criminals who would illegally use their access to our most sensitive information to endanger our national security are, in fact, being investigated and prosecuted. Since January, the Department has more than tripled the number of active leak investigations compared to the number pending at the end of the last Administration. And we have already charged four people with unlawfully disclosing classified material or with concealing contacts with foreign intelligence officers.
Soon after I arrived here in February, I initiated a review of our leak investigations and prosecutions. I reviewed how these cases were being referred and handled and was concerned with what we found—too few referrals, too few investigations with insufficient resources dedicated to them. I concluded the unprecedented rise in leaks required a surge of additional support for more investigations and to speed up our existing investigations.
Our system here relies on the intelligence community making a determination of whether classified material has been improperly handled or released and then sending referrals to the Department of Justice. This means it is vital for the intelligence community to know that the Department of Justice is committed to investigating and prosecuting these referrals. And when few investigations take place, criminal leaks may occur more often and a culture of leaking takes hold.
So, today, I have this message for the intelligence community: The Department of Justice is open for business.
And I have this warning for would-be leakers: Don’t do it.
For the past several months, we have already made changes and are seriously ramping up our efforts.
First, I directed my Deputy Attorney General Rod Rosenstein—whose district in Maryland encompassed the NSA headquarters and who has personally led these kinds of investigations— and FBI Director Christopher Wray to oversee all classified leak investigations and actively monitor the progress of each and every case.
Second, I directed the National Security Division and U.S. Attorneys to prioritize cases involving unauthorized disclosures. The Department will not hesitate to bring lawful and appropriate criminal charges against those who abuse the nation’s trust.
Third, as I said, we tripled the number of active leak investigations. In response, the FBI has increased resources devoted to leak cases and created a new counterintelligence unit to manage these cases. Simultaneously, the Department is reviewing policies that impact leak investigations.
I have listened to career investigators and prosecutors about how to most successfully investigate and prosecute these matters. At their suggestion, one of the things we are doing is reviewing policies affecting media subpoenas. We respect the important role that the press plays and will give them respect, but it is not unlimited. They cannot place lives at risk with impunity. We must balance their role with protecting our national security and the lives of those who serve in our intelligence community, the armed forces, and all law abiding Americans.
Finally, here is what I want to tell every American today: This nation must end the culture of leaks. We will investigate and seek to bring criminals to justice. We will not allow rogue anonymous sources with security clearances to sell out our country any longer.
These cases are never easy. But cases will be made, and leakers will be held accountable.
All of us in government and in every agency and in Congress must do better. The first requirement is personal discipline. Education and repetition will make a difference. Prevention is what’s required. An investigation of a leak is too late, the danger is done.
Justice Department Announces that Commitment to Reducing Violent Crime Stemming from Illegal Immigration will be Required for Participation in Public Safety Partnership ProgramRead the Press Release
The Department of Justice today announced that, in order to be selected for participation in the Department’s Public Safety Partnership (PSP) program, local jurisdictions must show a commitment to reducing crime stemming from illegal immigration.
In making the announcement, Attorney General Jeff Sessions said:
“By protecting criminals from immigration enforcement, cities and states with so-called 'sanctuary' policies make all of us less safe. We saw that just last week, when an illegal alien who had been deported twenty times and was wanted by immigration authorities allegedly sexually assaulted an elderly woman in Portland, a city that refuses to cooperate with immigration enforcement.
"By forcing police to go into more dangerous situations to re-arrest the same criminals, these policies endanger law enforcement officers more than anyone. The Department of Justice is committed to supporting our law enforcement at every level, and that’s why we're asking 'sanctuary' jurisdictions to stop making their jobs harder. By taking simple, common-sense considerations into account, we are encouraging every jurisdiction in this country to cooperate with federal law enforcement. That’s what 80 percent of the American people want them to do, and that will ultimately make all of us safer—especially law enforcement on our streets.
“These policies are driven by politics and do not protect their citizens. We will fight them with every lawful tool available."
The PSP program was announced in June and is a training and technical assistance program designed to enhance the capacity of local jurisdictions to address violent crime in their communities. Twelve locations were initially selected and the Department may announce additional sites later this year.
In determining which jurisdictions to select, the Department will ask interested jurisdictions the following questions:
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Does your jurisdiction have a statute, rule, regulation, policy, or practice that is designed to ensure that U.S. Department of Homeland Security (DHS) personnel have access to any correctional or detention facility in order to meet with an alien (or an individual believed to be an alien) and inquire as to his or her right to be or to remain in the United States?
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Does your jurisdiction have a statute, rule, regulation, policy, or practice that is designed to ensure that your correctional and detention facilities provide at least 48 hours advance notice, where possible, to DHS regarding the scheduled release date and time of an alien in the jurisdiction’s custody when DHS requests such notice in order to take custody of the alien?
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Does your jurisdiction have a statute, rule, regulation, policy, or practice that is designed to ensure that your correctional and detention facilities will honor a written request from DHS to hold a foreign national for up to 48 hours beyond the scheduled release date, in order to permit DHS to take custody of the foreign national?
In the attached letters, the Justice Department today formally requested that information from the following four local jurisdictions interested in the PSP program: Albuquerque, New Mexico; Baltimore, Maryland; San Bernardino, California; and Stockton, California
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Statement by Attorney General Sessions on the Swearing in of FBI Director Chris WrayRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the swearing in of the new Federal Bureau of Investigation Director Chris Wray:
"Moments ago I had the honor of swearing in Chris Wray as our new Director of the Federal Bureau of Investigation.
"Chris has the experience and the strength of character that the American people want in an FBI Director and I congratulate him for being overwhelmingly confirmed to that post and look forward to working with him every day to keep America safe.
“As a former federal prosecutor and head of the Department of Justice's Criminal Division, Chris Wray has successfully prosecuted terrorists, drug kingpins, and white-collar criminals. He has earned the respect of his colleagues at DOJ, receiving our highest honor, the Edmund Randolph award, and bipartisan support in the Senate.
"I am confident that the FBI, the premier investigative agency in the world, is in great hands with Director Chris Wray at the helm."
Statement by Attorney General Sessions on the RAISE ActRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the RAISE Act:
“This proposal will help the Department of Justice perform its duties to uphold our nation's immigration law and end the unlawful abuse of our public benefits program that undermine U.S. taxpayers. The higher entry standards established in this proposal will allow authorities to do a more thorough job reviewing applicants for entry, therefore protecting the security of the U.S. homeland. The additional time spent on vetting each application as a result of this legislation will also ensure that each application serves the national interest.
“The American people deserve a lawful immigration system that promotes our national interest. The RAISE Act would give us a more merit-based immigration system that admits the best and the brightest around the world while making it harder for people to come here illegally. The bill would end programs known to be rife with fraud and abuse and finally improve the vetting process, making our country--and working-class wages--much safer and stronger."
New York Man Pleads Guilty to Multi-State Biodiesel Fraud SchemeRead the Press Release
Andre Bernard, of Mount Kisco, New York, pleaded guilty today for his participation in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel credits and fraudulently claiming tax credits, announced Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida.
According to his plea, Bernard conspired with Thomas Davanzo, of Estero, Florida, Robert Fedyna, of Naples, Florida, and Scott Johnson of Pasco, Washington in a scheme to defraud biodiesel credit (known as “RIN” credits) buyers and U.S. taxpayers. The conspiracy involved having Gen-X Energy Group (Gen-X), headquartered in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC), located in Dublin, Georgia, generate fraudulent RINs and tax credits multiple times on the same material.
Bernard and his co-conspirators operated several shell companies that claimed to purchase and sell the renewable fuel. The co-conspirators also cycled the funds through these shell companies’ bank accounts to perpetuate the fraud scheme and conceal its proceeds.
From March 2013 to March 2014, the co-conspirators generated at least 60 million RINs that were based on fuel that was either never produced or was merely re-processed at the Gen-X or SRC facilities. The co-conspirators received at least $42 million from the sale of these fraudulent RINs to third parties. In addition, Gen-X received approximately $4,360,724.50 in false tax credits for this fuel.
This case was investigated by the U.S. Secret Service, the Environmental Protection Agency Criminal Investigation Division, and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Sara C. Sweeney of the Middle District of Florida and Trial Attorney Adam Cullman of the Environment and Natural Resources Division of the Department of Justice.
Attorney General Sessions Announces Opioid Fraud and Abuse Detection UnitRead the Press Release
Attorney General Jeff Sessions today announced the formation of the Opioid Fraud and Abuse Detection Unit, a new Department of Justice pilot program to utilize data to help combat the devastating opioid crisis that is ravaging families and communities across America.
Speaking at the Columbus Police Academy today, Attorney General Sessions said that the new Opioid Fraud and Abuse Detection Unit will focus specifically on opioid-related health care fraud using data to identify and prosecute individuals that are contributing to this prescription opioid epidemic.
Additionally, as part of the program, the Department will fund twelve experienced Assistant United States Attorneys for a three year term to focus solely on investigating and prosecuting health care fraud related to prescription opioids, including pill mill schemes and pharmacies that unlawfully divert or dispense prescription opioids for illegitimate purposes.
The following districts have been selected to participate in the program:
- Middle District of Florida,
- Eastern District of Michigan,
- Northern District of Alabama,
- Eastern District of Tennessee,
- District of Nevada,
- Eastern District of Kentucky,
- District of Maryland,
- Western District of Pennsylvania,
- Southern District of Ohio,
- Eastern District of California,
- Middle District of North Carolina, and
- Southern District of West Virginia.
In his speech, the Attorney General discussed the new program:
“First, I am announcing a new data analytics program – the Opioid Fraud and Abuse Detection Unit. I have created this unit to focus specifically on opioid-related health care fraud using data to identify and prosecute individuals that are contributing to this opioid epidemic. This sort of data analytics team can tell us important information about prescription opioids—like which physicians are writing opioid prescriptions at a rate that far exceeds their peers; how many of a doctor's patients died within 60 days of an opioid prescription; the average age of the patients receiving these prescriptions; pharmacies that are dispensing disproportionately large amounts of opioids; and regional hot spots for opioid issues.
“With this data in hand, I am also assigning 12 experienced prosecutors to focus solely on investigating and prosecuting opioid-related health care fraud cases in a dozen locations around the country where we know enforcement will make a difference in turning the tide on this epidemic. These prosecutors, working with FBI, DEA, HHS, as well as our state and local partners, will help us target and prosecute these doctors, pharmacies, and medical providers who are furthering this epidemic to line their pockets. These prosecutors will be based in several states across the country, including Kentucky, West Virginia, Tennessee, and right here in Southern Ohio.
“With these new resources, we will be better positioned to identify, prosecute, and convict some of the individuals contributing to these tens of thousands of deaths a year. The Department is determined to attack this opioid epidemic, and I believe these resources will make a difference.”
Full remarks as prepared for delivery are provided below:
Thank you Benjamin (Glassman) for that introduction, and more importantly, thank you for your 12 years of hard work at the Department to keep this community safe. And, of course, thank you to your Attorney General Mike Dewine. I know they care about these issues deeply. And Senator Portman, who couldn’t be with us today, but I know firsthand he has been a passionate and steadfast leader in the Senate about tackling the opioid problem for years.
I wanted to be here with you all today because Ohio is at the center of this drug crisis that is gripping our entire nation. This crisis affects all of us, but it is especially taking its toll on this community.
On average, one person in Columbus dies of a drug overdose every day.
And that pace is only accelerating. According to a survey of Ohio’s coroners, more than 4,000 Ohioans died of a drug overdose last year. And in Columbus, the coroner has already seen a 66 percent jump this year from the same time last year.
These aren’t just numbers. These are moms and dads. These are sisters, brothers, and grandchildren. These are neighbors and co-workers. These are friends. These are Americans.
Just last week, a two-year-old girl in Dayton was hospitalized for a suspected opioid overdose—two years old.
In 2015, more than 52,000 Americans lost their lives to drug overdoses. And the numbers we have for 2016 show another increase—a big increase. Based on preliminary data, nearly 60,000 Americans lost their lives to drug overdoses last year. That will be the highest drug death toll and the fastest increase in that death toll in American history. This is not a sustainable trend nor an acceptable America.
This crisis is being driven primarily by opioids—prescription drugs, heroin, and synthetic drugs like fentanyl.
According to the New England Journal of Medicine, we’re seeing more availability, higher purity, and lower price. They’re lacing heroin and cocaine with fentanyl—a drug 30 to 50 times more powerful than heroin. As a result, the drugs on the street are now more powerful, more addictive, and more dangerous than ever. And they’re not just dangerous for users: even being accidently exposed to just a few grains of fentanyl can kill a police officer or paramedic.
Sadly, this was almost the case just a couple months ago in East Liverpool, Ohio when Officer Chris Green brushed off a few grains of white powder from his shirt an hour after a traffic stop and fell to the floor. Luckily, he was in his squad room and they got to him immediately. As his police chief said, “if he would have been alone, he would have been dead.” Or imagine if he’d gone straight home that day to give his kids a hug? These are terrifying thoughts for our law enforcement.
To confront a crisis on this scale, we must take a comprehensive approach to the problem. There are three components: prevention, enforcement, and treatment.
Treatment is important. In some cases, treatment can help break the cycle of addiction and crime and help people get their lives back together.
But treatment alone is not enough. Treatment often comes too late. By the time many people receive treatment, they, their families, and communities have already suffered so much. The struggle to overcome addiction can be a long process – and it can fail. And not only can it fail, it very often fails.
In recent years, some of the government officials in this country have sent mixed messages about the harmfulness of drugs. We must not capitulate intellectually or morally to drug use. We must create a culture that is hostile to drug abuse. We know this can work. It has worked in the past for drugs, but also for cigarettes and seatbelts. A campaign was mounted, it took time, and it was effective. We need to send such a clear message now.
The Department of Justice has been working diligently to improve our prevention efforts. We are doing that through raising awareness, through drug take-back programs, and through DEA’s 360 Strategy program – Dayton was recently announced as a 2017 pilot city.
Prevention is what we at the Department do every day—because enforcement is prevention. Enforcing our laws helps keep drugs out of our country, decrease their availability, drive up their price, and reduce their purity and addictiveness.
DEA tells us that 80 percent of heroin addiction starts with prescription drug addiction. We must stop the abuse of prescription drugs.
Earlier this month, the Department announced the largest health care fraud takedown in American history. DOJ coordinated the efforts of more than 1,000 state and federal law enforcement agents to arrest more than 400 defendants. More than 50 of these defendants were doctors and have been charged with opioid-related crimes, which means this was also the largest opioid-related fraud takedown in American history.
And, just a week after we made that announcement, we announced the seizure and take down of AlphaBay— the largest dark net marketplace takedown in history. This site hosted some 220,000 drug sale listings and was responsible for countless synthetic opioid overdoses, including the tragic death of a 13 year old in Utah.
These efforts build on the good work that U.S. Attorney Glassman and the Department have accomplished here. In late January, a doctor from New Albany, Ohio pled guilty to maintaining a clinic as a front for drug trafficking. He forfeited more than $29 million in seized assets from illegal drug trafficking.
A few months later, in April, a doctor from Portsmouth, Ohio, pled guilty to conspiring to distribute a controlled substance through a pain clinic. For six years, the clinic saw more than 20 patients a day, who each paid at least $200 in cash. At one point the defendant even opened her own dispensary at the clinic, so she could fill her own prescriptions for desperate patients.
These cases are beginning to roll in from all over the country.
On behalf of the Department, I want to say thank you to U.S. Attorney Glassman and everyone who worked on these cases. You have made this Department proud—and more importantly, you have made the people of Ohio safer.
And we can and must do more. Which is why today, we are announcing a new effort to target our federal resources against this epidemic. If you are a doctor illegally prescribing opioids for profit or a pharmacist letting these pills walk out the door and onto our streets based on prescriptions you know were obtained under false pretenses, we are coming after you. We will reverse these devastating trends with every tool we have.
First, I am announcing a new data analytics program – the Opioid Fraud and Abuse Detection Unit. I have created this unit to focus specifically on opioid-related health care fraud using data to identify and prosecute individuals that are contributing to this opioid epidemic. This sort of data analytics team can tell us important information about prescription opioids—like which physicians are writing opioid prescriptions at a rate that far exceeds their peers; how many of a doctor's patients died within 60 days of an opioid prescription; the average age of the patients receiving these prescriptions; pharmacies that are dispensing disproportionately large amounts of opioids; and regional hot spots for opioid issues.
With this data in hand, I am also assigning 12 experienced prosecutors to focus solely on investigating and prosecuting opioid-related health care fraud cases in a dozen locations around the country where we know enforcement will make a difference in turning the tide on this epidemic. These prosecutors, working with FBI, DEA, HHS, as well as our state and local partners, will help us target and prosecute these doctors, pharmacies, and medical providers who are furthering this epidemic to line their pockets. These prosecutors will be based in several states across the country, including Kentucky, West Virginia, Tennessee, and right here in Southern Ohio.
With these new resources, we will be better positioned to identify, prosecute, and convict some of the individuals contributing to these tens of thousands of deaths a year. The Department is determined to attack this opioid epidemic, and I believe these resources will make a difference.
And I issue a plea to all physicians, dentists, pharmacists: slow down. First do no harm.
These efforts will make all of us safer—and not just from the threat of drug addiction. They also help us reduce violence in our communities.
Drug trafficking is an inherently violent business. If you want to collect a drug debt, you can’t file a lawsuit in court. You collect it by the barrel of a gun.
By putting traffickers behind bars and reducing the supply of dangerous drugs, we will prevent much of the violence that is associated with drug dealing.
We also have to recognize that most of the heroin, cocaine, methamphetamine, and fentanyl in this country got here across our Southern border. Under President Trump’s strong leadership, the federal government is finally getting serious about securing our borders. Illegal entries are down 50 percent already and the wall has not even gone up.
We have also seen steep decreases in drug prices on the street. But the price we have paid as a country has only gone up. If you ask the economists, they’ll tell you that prescription opioid addiction costs our economy some $78 billion a year and other illicit drugs cost us another $193 billion a year. Remember, many of these drugs are paid for by private insurance, Medicaid, Medicare, and the VA. But what is even more devastating is the price we have paid in broken relationships, broken lives, and death rates the likes of which we have never seen before.
In the face of the worst drug crisis in our history, we need to use every lawful tool we have. But I’m convinced this is a winnable war. We will be calling on America’s great physicians and health care workers to take special care with addictive drugs. And in order to win, we are committing more Department of Justice resources to combat this epidemic, as well as continue to work to strengthen our partnerships with you—law enforcement on the front lines.
Let me ask you to do a simple thing: after every arrest for illegal possession of an illegal prescription, make every effort to get the arrestee to tell you where he or she got the drugs. We did that in Mobile and it led us to the two biggest sources in town. We need to hammer these illegal suppliers. You are ultimately the most effective resources that we as a country have in this effort. You have a tough job, but it’s a job worth doing.
But you can also know this: you have our thanks and this Department of Justice will always have your back. Thank you.
Pursuant to Executive Order on Public Safety, Departments of Justice and Homeland Security Release Data on Incarcerated AliensRead the Press Release
President Trump’s Executive Order on Public Safety in the Interior of the United States requires the Department of Justice and Department of Homeland Security to collect relevant data and provide quarterly reports on data collection efforts. The data in this release shows a significant prison population of incarcerated aliens.
Below is a summary of data collected under Section 16 of the Order, which directs “the Secretary [of Homeland Security] and the Attorney General . . . to collect relevant data and provide quarterly reports” regarding the following subjects: (a) the immigration status of all aliens incarcerated under the supervision of the Bureau of Prisons; (b) the immigration status of all aliens incarcerated as federal pretrial detainees; and (c) the immigration status of all convicted aliens in state prisons and local detention centers throughout the United States.
Information Regarding Immigration Status of Aliens Incarcerated Under the Supervision of the Federal Bureau of Prisons
The Department of Justice’s Bureau of Prisons (BOP) has an operational process for maintaining data regarding foreign-born inmates in its custody. On a daily basis, BOP supplies this information to U.S. Immigration and Customs Enforcement (ICE). ICE, in turn, analyzes that information to determine the immigration status of each inmate and provides that information back to BOP.
As a part of satisfying the Justice Department’s second quarterly report of this information, below is information regarding aliens currently incarcerated under the supervision of BOP.[1] This information is current as of June 24:
Out of the 187,855 inmates in BOP custody, 42,034 are foreign-born. The breakdown of the 42,034 aliens is as follows:
- 19,749 (46.9%) are aliens who have received final orders of removal;
- 21,121 (50.2%) are aliens who are under ICE investigation for possible removal;
- 1,157 (2.8%) are aliens whose cases are pending adjudication before an Immigration Judge in the Executive Office of Immigration Review (EOIR); and
- Seven (.0002%) are aliens who have been granted relief.
Information Regarding the Immigration Status of Aliens Incarcerated as Federal Pretrial Detainees
The U.S. Marshal Service (USMS), the Department of Justice’s component charged with the housing and care of federal pretrial detainees, recently instituted a program to capture data regarding the immigration status of these detainees.
Based upon records current as June 14, USMS identified 12,005 “self-reporting” foreign-born prisoners (aliens) out of 50,135 arrested and detained at USMS facilities. Further details follow for the 12,005 detained aliens:
- 9,857 (82.1%) are aliens who have received final orders of removal;
- 2,047 (17.1%) are aliens whose cases are still pending adjudication before an Immigration Judge in the EOIR; and
- 101 (.8%) are aliens still pending adjudication (ICE has charged these aliens as removal cases, but a final disposition has not yet been reached.)
Immigration Status of All Convicted Aliens Incarcerated in State Prisons and Local Detention Centers throughout the United States
The Department continues to progress towards establishing data collection of the immigration status of convicted aliens incarcerated in state prisons and local detention centers through its Office of Justice Programs (OJP), Bureau of Justice Statistics (BJS).
[1] The previous report is available at: https://www.justice.gov/opa/pr/pursuant-executive-order-public-safety-department-justice-releases-data-incarcerated-aliens-0
Naval Employee Pleads Guilty to Accepting More Than $250,000 in Cash Bribes from Unauthorized Liquor BuyersRead the Press Release
An employee of the U.S. Department of the Navy pleaded guilty today to accepting more than $250,000 in cash bribes from three people making unauthorized liquor purchases from the Navy Exchange Service Command where he worked, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Special Agent in Charge Leo Lamont of the Naval Criminal Investigative Service’s (NCIS) Northeast Field Office.
Eric Jex, 29, of Uniondale, New York, pleaded guilty to one count of bribery before U.S. District Judge Joanna Seybert of the Eastern District of New York. Sentencing is set for Feb. 2, 2018.
According to admissions made in connection with his guilty plea, as a supervisory sales associate at the NEX at Mitchel Field in Garden City, New York, Jex was responsible for preparing and processing retail transactions, and he had direct authority to make decisions concerning large liquor orders and shipments from the NEX’s warehouse. He was also subject to policies limiting access to the NEX’s goods to authorized personnel, such as Navy service members, and requiring NEX employees to check purchasers’ IDs. In connection with his guilty plea, Jex admitted that from approximately November 2015 through December 2016, he agreed with three unauthorized purchasers, one of whom had a New York State Liquor License, to arrange repeated large purchases of liquor from the NEX. He allowed the three unauthorized purchasers access to the NEX’s low prices and frequently provided additional price-matching discounts to which the purchasers were not entitled. In exchange, the three unauthorized purchasers paid cash bribes to Jex, typically $5 to $20 per case of liquor. According to plea documents, these bribes added up to more than $250,000 for the period of the scheme.
The NCIS; U.S. Treasury Department, Alcohol and Tobacco Tax and Trade Bureau; and the New York State Department of Taxation and Finance, Criminal Investigations Division investigated this case. Trial Attorneys Luke Cass and Andrew Laing of the Criminal Division’s Public Integrity Section are prosecuting the case with the assistance of the U.S. Attorney’s Office for the Eastern District of New York.
Justice Department Continues Aggressive Prosecutions of Transnational Criminal Organizations and Their SubsidiariesRead the Press Release
The Department of Justice today released a report detailing the convictions of members of transnational criminal organizations during the third quarter of the Fiscal Year 2017. The report highlights this Administration and the Justice Department’s aggressive pursuit of criminal groups seeking to cause Americans harm.
On Feb. 9, 2017, President Donald J. Trump issued an Executive Order on Enforcing Federal Law with Respect to Transnational Criminal Organizations and Preventing International Trafficking. The Department of Justice is working together in partnership with the Department of State, Department of Homeland Security, and the Office of the Director of National Intelligence to implement Executive Order 13773.
Included in the report are 506 convictions in cases targeting transnational criminal organizations in the third quarter, together with additional reporting from the Organized Crime Drug Enforcement Task Forces for the second quarter. This brings the number of convictions in the second quarter to 754. In all, the Department of Justice has reported 1,260 convictions of members of transnational criminal organizations and their subsidiaries since Jan. 1, 2017.
“At a time when homicide rates are up in 27 of our 35 biggest cities and violent crime is rising, the Trump administration has made it a top priority to deter and reduce violent crime through enforcing our laws,” said Attorney General Jeff Sessions. “One of the gravest threats we face is from transnational criminal organizations, and the Department of Justice is taking on this threat, convicting more than 1,260 gang members already this year. These convictions send a clear message to gang members and would-be criminals through this country: we will find you and bring you to justice.”
The accompanying report, provided in accordance with Section 3 (g) of the Executive Order, provides information pertaining to the number of convictions in investigations involving transnational criminal organizations as reported by the Department of Justice, for the period beginning April 1, 2017 and ending June 30, 2017.
Attorney General Jeff Sessions Announces General Mark S. Inch as New Federal Bureau of Prisons DirectorRead the Press Release
Today Attorney General Jeff Sessions announced the selection of General Mark S. Inch as the director of the Federal Bureau of Prisons (BOP).
"General Mark Inch has served this country at home and abroad for 35 years," Attorney General Jeff Sessions said. "As a military policeman for nearly a quarter of a century and as the head of Army Corrections for the last two years, General Inch is uniquely qualified to lead our federal prison system. My confidence that he will be a highly effective leader of the Federal Bureau of Prisons is second only to my gratitude for his willingness to continue his service to this great country in this critical role."
General Inch most recently served as the Provost Marshal General and Commanding General of the Criminal Investigation Command and Army Corrections at Headquarters for the Department of the Army. In that position General Inch was the principal military advisor to the Secretary of the Army and Chief of Staff of the Army on all policing matters. In that role he was also responsible for developing and executing strategy, policies, plans and programs for the Army’s policing organizations.
General Inch previously held the role of Commanding General of the Combined Joint Interagency Task Force 435 in Kabul, Afghanistan where he was responsible for Detainee Operations and Rule of Law Development within the Army’s Security Sector.
Justice Department and EPA Enter into Settlement with Harcros Chemicals to Improve its Accident Prevention and Fire Protection MeasuresRead the Press Release
The U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced that Harcros Chemicals Inc. has entered into a proposed agreement to settle claims that Harcros violated provisions of the Clean Air Act aimed at preventing accidental releases of chemicals that can have serious consequences for public health, safety and the environment. Under the proposed agreement, Harcros will assure that its accident prevention program complies with all applicable requirements.
Headquartered in Kansas City, Kan., Harcros maintains and operates 31 facilities in 19 states that manufacture, blend, repackage, and distribute a wide variety of commercial chemicals, including extremely hazardous substances.
“This resolution ensures that Harcros complies with important Clean Air Act requirements that seek to prevent catastrophic releases of hazardous chemicals to the environment,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “Today’s action shows that DOJ and EPA are serious about enforcing compliance with the Clean Air Act and protecting American workers and their communities from risks associated with accidental releases of hazardous substances. We also appreciate the positive cooperation that we received from Harcros during the resolution of this matter.”
“This important agreement will improve chemical safety and minimize the risk of accidental releases at Harcros’ facilities nationwide,” said Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance Assurance. “It is a priority for EPA to ensure that companies properly manage risks posed by chemicals in a way that protects communities from accidental releases.”
Under the proposed settlement, Harcros will audit 28 of its facilities to identify and correct any potential violations of its risk management program and comply with Clean Air Act requirements that facilities adequately assess hazards, undertake measures to prevent accidents, and be prepared to effectively address such accidents when they do occur. Harcros will correct any violations identified in the audits according to a schedule set forth in the agreement. The settlement agreement also requires Harcros to pay a $950,000 penalty.
Also, as part of today’s agreement, Harcros will install foam-based sprinkler systems at eight of its facilities. The enhanced fire suppression system is expected to minimize the impacts of an accident by enhancing the speed and effectiveness of the facilities’ ability to extinguish the flames and prevent spread of chemicals.
The proposed settlement reflects the fact that Harcros Chemicals initially brought these violations to the attention of the EPA. In addition, Harcros cooperated fully with the Justice Department and the EPA during the negotiation of the consent decree.
The proposed consent decree was lodged with the United States District Court for the District of Kansas and will be subject to a 30-day public comment period following its publication in the Federal Register. A copy of the consent decree lodged today is available on the Department of Justice website at: http://www.justice.gov/enrd/Consent_Decrees.html.
For more information about today’s agreement, visit: https://www.epa.gov/enforcement/harcros-chemicals-inc-clean-air-act-settlement.
Federal Gun Prosecutions up 23 Percent After Sessions MemoRead the Press Release
Today, the U.S. Department of Justice announced that, following the memorandum from Attorney General Sessions to prioritize firearm prosecutions, the number of defendants charged with unlawful possession of a firearm increased nearly 23 percent in the second quarter of 2017 (2,637) from the same time period in 2016 (2,149).
“Violent crime is on the rise in many parts of this country, with 27 of our biggest 35 cities in the country coping with rising homicide rates,” said Attorney General Jeff Sessions. “Law abiding people in some of these communities are living in fear, as they see families torn apart and young lives cut short by gangs and drug traffickers. Following President Trump’s Executive Order to focus on reducing crime, I directed federal prosecutors to prioritize taking illegal guns off of our streets, and as a result, we are now prosecuting hundreds more firearms defendants. In the first three months since the memo went into effect, charges of unlawful possession of a gun – mostly by previously convicted felons – are up by 23 percent. That sends a clear message to criminals all over this country that if you carry a gun illegally, you will be held accountable. I am grateful to the many federal prosecutors and agents who are working hard every day to make America safe again.”
In February, immediately after the swearing-in of Attorney General Jeff Sessions, President Trump signed an Executive Order that directs the Attorney General to seek to reduce crime and to set up the Task Force on Crime Reduction and Public Safety. The Task Force has provided Sessions with recommendations on a rolling basis. In March, based on these recommendations, Attorney General Sessions sent a memorandum to Department of Justice prosecutors, ordering them to prioritize firearms offenses.
In the three months immediately following the Attorney General’s memo – April, May and June – the number of defendants charged with unlawful possession of a firearm (18 U.S.C. 922) increased by nearly 23 percent compared to those charged over the same time period in 2016. The number of defendants charged with the crime of using a firearm in a crime of violence or drug trafficking (18 U.S.C. 924), increased by 10 percent.
Based on data from the Executive Office for United States Attorneys (EOUSA), in Fiscal Year 2016 (starting October 1), 11,656 defendants were charged with firearms offenses under 18 U.S.C. 922 or 924. EOUSA projects that in Fiscal Year 2017, the Department is on pace to charge 12,626 defendants with these firearms crimes. That would be the most federal firearms cases since 2005. It would also be an increase of eight percent from Fiscal Year 2016, 20 percent from 2015, and an increase of 23 percent from 2014.
Federal Court Shuts Down Long Island Tax Return PreparersRead the Press Release
A federal court in New York permanently enjoined Elias Linares, Margea Zaldivar, and their businesses Taxes La Universal Corp., Universal Taxes & Staffing Corp. and Taxes La Universal II Corp., from preparing federal tax returns for others, the Justice Department announced today. Linares and Zaldivar agreed to a civil injunction order entered against them, which requires them and their businesses to cease tax return preparation and notify current and former clients of the injunction.
According to the government’s complaint, Linares and Zaldivar, through their businesses located in Freeport and Roosevelt, New York, routinely prepared federal tax returns for customers that contained false or erroneous claims for education tax credits, fuel tax credits and the Earned Income Tax Credit. For example, the complaint alleges that Linares and Zaldivar falsely claimed education tax credits, including listing the Department of Education as an educational institution at which their customers incurred fictitious educational expenses. During the Internal Revenue Service’s (IRS) investigation of Linares, Zaldivar, and their businesses, the IRS sent questionnaires to their customers whose returns contained suspicious items, according to the complaint. One of these customers dropped off the IRS’s questionnaire at Taxes La Universal and picked it up when it was completed, according to the complaint. This questionnaire stated that the customer attended a local community college, and during an interview with the IRS, this customer stated that this information was not true, according to the complaint.
The complaint alleges that these types of return preparer misconduct allowed Linares and Zaldivar to understate their customers’ tax liabilities and claim undeserved refunds. As alleged in the complaint, IRS examinations of 51 returns prepared by Linares, Zaldivar, or their businesses show that all 51 contained false or erroneous claims resulting in a collective tax deficiency of over $479,000.
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.