District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Maryland Man Pleads Guilty in Stolen Identity Tax Refund SchemeRead the Press Release
A Temple Hills, Maryland man pleaded guilty today in U.S. District Court for the District of Columbia to conspiring to file fraudulent claims for tax refunds, wire fraud, aggravated identity theft and false personation, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the Indictment and information provided to the court, Anthony Ferguson participated in a stolen identity refund fraud conspiracy from January 2012 through May 2016. Ferguson and his co-conspirators obtained personal identifying information from several sources and used those identities to file tax returns and obtain fraudulent refunds from the Internal Revenue Service (IRS). In 2016, Ferguson pretended to be an employee of the U.S. Department of the Treasury and sent text messages to a witness in an attempt to obtain the details of an ongoing criminal investigation into his conduct.
Sentencing is scheduled for Oct. 23 before U.S. District Court Judge Royce C. Lamberth. He faces a statutory maximum sentence of 10 years in prison for conspiring to file false refund claims, 20 years in prison for each count of wire fraud, three years in prison for false personation and a mandatory minimum sentence of two years in prison for each count of aggravated identity theft. Ferguson also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Mark McDonald, Sean Green and Jack Morgan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
INTERPOL Washington Addresses Biometrics ConferenceRead the Press Release
INTERPOL Washington INTERPOL Washington Assistant Director Royce Walters addresses the audience at the Biometrics for Government & Law Enforcement International Conference.On July 26, 2017, INTERPOL Washington--the U.S. National Central Bureau--participated in the Biometrics for Government & Law Enforcement International Conference. Held in Arlington, Virginia, the three-day event brought together industry experts from various fields, including high level U.S. government officials, directors of security agencies, heads of acquisition, and biometric program managers, to discuss the challenges and best practices they have encountered with shaping national and global security.
INTERPOL Washington Assistant Director Royce Walters addressed the session called, “Leveraging Voice, Face and Physical Behavioral Biometrics to Enhance Security Layers.” He provided an overview of INTERPOL Washington, including its mission and participation in various information sharing initiatives.
Border points are critical locations for preserving national security and INTERPOL has a number of tools to support these efforts, including INTERPOL’s database of Stolen and Lost Travel Documents (SLTD). Walters explained the origins of SLTD which became operational in July of 2002, following the 9/11 terrorist attacks. SLTD helps INTERPOL member countries secure their borders and protect their citizens from terrorists and other dangerous criminals who travel freely using stolen, lost, revoked, and forged travel documents. The SLTD database is a searchable repository of visas and passports reported as lost or stolen.
INTERPOL National Central Bureaus (NCBs) and law enforcement agencies submit information about stolen and lost travel documents directly into the SLTD database via INTERPOL’s secure global police-to-police communications system, I-24/7. Law enforcement officials use the SLTD database to screen the passports of individuals who are travelling internationally in order to rapidly ascertain the status of the individual and passport in question.
Walters emphasized the important role that individual countries play in the success of the SLTD. The database is only as strong as the information entered and the consistency of its use.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.Hundreds of MS-13 Gang Members Charged by Salvadoran Government During Visit by Attorney General SessionsRead the Press Release
During their meeting in San Salvador this morning, Attorney General Jeff Sessions congratulated Attorney General Douglas Menéndez on their announcement that Salvadoran prosecutors today charged 113 MS-13 gang members in El Salvador. In addition, 593 gang members were charged yesterday, including many MS-13 members.
On February 9, 2017, President Donald J. Trump issued an Executive Order on Enforcing Federal Law with Respect to Transnational Criminal Organizations and Preventing International Trafficking to dismantle and eradicate transnational gangs threatening the safety of our communities. Pursuant to that order, Attorney General Sessions has made dismantling transnational gangs like MS-13 a priority. Today’s announcement comes as a result of the meeting the Attorneys General held in March of this year in Washington, D.C.
Earlier this year, members of the MS-13’s Peajes Locos Salvatruchas Clique, occupying territory in the La Paz Department of the country, allegedly committed several high profile murders including the killings of three victims from the LGBT community who were believed to have committed extortions without authorization from MS-13. The alleged shooter in these high profile murders fled to the United States and is now in ICE custody pending immigration proceedings. ICE agents in El Salvador are coordinating with their counterparts in the United States to ensure that he is quickly removed and brought back to El Salvador to face charges.
The investigation into this MS-13 clique is being handled by Salvadoran gang prosecutors who were trained and mentored by FBI and State Department Bureau of International Narcotics and Law advisors, Justice Department embedded Office of Overseas Prosecutorial Development Assistance and Training (OPDAT) prosecutors, and police officers from the HIT Team. In addition, FBI and OPDAT teams worked with Salvadoran prosecutors to fund and arrange for essential witnesses to the murders to be transported to El Salvador for court proceedings.
Former Supervisor at Portland, Oregon-Area Manufacturing Company Pleads Guilty for Role in Product Certification Fraud SchemeRead the Press Release
Yesterday, a former supervisor at an aluminum extrusion manufacturing company in the Portland, Oregon, area pleaded guilty for his role in a decade-long scheme involving the fraudulent certification of mechanical properties for parts manufactured by his former employer.
Acting Assistant Attorney General Kenneth A. Blanco of the Department of Justice’s Criminal Division, Executive Officer Renee Juhans of the NASA Office of Inspector General, Special Agent in Charge Loren ‘Renn’ Cannon of the FBI’s Portland Division, Special Agent in Charge Chris Hendrickson of the Defense Criminal Investigative Service’s (DCIS) Western Field Office and Special Agent in Charge John Khin of DCIS’s Southeast Field Office made the announcement.
Dennis Balius, 60, of Portland, pleaded guilty to one count of mail fraud before U.S. District Judge Marco A. Hernández of the District of Oregon. Sentencing has been scheduled for November 30 before Judge Hernández.
As part of his guilty plea, Balius admitted that, as a lab supervisor at a Portland-area aluminum extrusion manufacturing facility, he trained and directed lab technicians – who conducted testing on aluminum extrusions – to falsify mechanical properties test results for extrusions that failed to meet industry specifications. Balius admitted that from the time he became a lab supervisor in or about 2003 through the end of his employment in 2015, he routinely falsified and instructed lab technicians to falsify test results to ensure the company’s unreliable and inconsistent production practices would not prevent aluminum extrusions from being shipped to customers. Balius admitted that he made, or directed lab technicians to make, alterations to failing test results if the shipping department asked him to rush an order because ensuring on-time delivery of aluminum helped him and other employees receive bonuses.
Balius further admitted that his former employer determined that he and the lab technicians altered the mechanical properties of aluminum extrusions over 4,000 times, allowing the manufacturing company to gross over $6.8 million in total sales based on altered test results.
This case was investigated by the NASA Office of Inspector General, the FBI’s Portland office and DCIS. The case is being prosecuted by Assistant Chief Thomas B.W. Hall and Trial Attorneys Jennifer G. Ballanytyne and Emily C. Scruggs of the Criminal Division’s Fraud Section.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
District of Columbia Woman Sentenced to Prison for Her Role in Scheme that Used Stolen Identities to Fraudulently Seek Tax RefundsRead the Press Release
A District of Columbia woman was sentenced today to 63 months in prison for her involvement in a scheme to fraudulently obtain millions of dollars in income tax refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; U.S. Attorney Channing D. Phillips for the District of Columbia; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office; Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Tarkara Cooper, 34, was convicted by a jury on Feb. 17 for conspiring to commit theft of government funds and defraud the United States and theft of public money. Two of her co-defendants, Tony Bryant, 55, and his son, Brian Bryant, 29, both of Clinton, Md., were also convicted at trial and are awaiting sentencing.
Cooper was part of a massive sophisticated stolen identity refund fraud scheme that involved a network of more than 130 people, many of whom were receiving public assistance. Conspirators fraudulently claimed refunds for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, willing participants in the scheme. The returns filed listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia. According to court documents, the overall case involved the filing of at least 12,000 fraudulent federal income tax returns that sought at least $42 million in refunds.
Conspirators played various roles in the scheme: stealing identifying information; allowing their personal identifying information to be used; creating and mailing fraudulent federal tax returns; allowing their addresses to be used for receipt of the refund checks; cashing the refund checks; providing bank accounts into which the refund checks were deposited and forging endorsements of identity theft victims on the refund checks. The false returns typically reported inflated or fictitious income from a sole proprietorship and claimed phony dependents to generate an Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes. To date, approximately two dozen participants in this scheme have pleaded guilty.
According to the evidence presented at trial, from approximately April 2010 through June 2012, Cooper and the Bryants participated in claiming $4,959,310 in fraudulent refunds, of which the IRS paid out approximately $2,285,717. Cooper agreed to allow her residence to be used for the delivery of tax refund checks, and was paid by a co-conspirator when she provided the tax refund checks to him. The Bryants deposited refund checks fraudulently obtained by others into accounts that they controlled.
In addition to the term of prison imposed, U.S. District Judge Rosemary M. Collyer ordered Cooper to serve three years of supervised release and to pay $1,926,958.14 in restitution to the IRS. She also ordered a forfeiture money judgment of $16,750.
Acting Deputy Assistant Attorney General Goldberg, U.S. Attorney Phillips, Special Agent in Charge Lappin, Inspector in Charge Wemyss and Assistant Inspector General Phillips commended the special agents who conducted the investigation and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein; Assistant U.S. Attorney Chrisellen Kolb; Paralegal Specialists Jessica Mundi, Aisha Keys, and Donna Galindo; former Paralegal Specialist Julie Dailey; Litigation Technology Specialist Ron Royal; Investigative Analysts William Hamann and Zachary McMenamin, and Victim/Witness Advocate Tonya Jones. They also expressed appreciation for the work of Trial Attorneys Jeffrey B. Bender, Thomas F. Koelbl, and Jessica Moran of the Tax Division, who worked on the case.
Finally, they commended the work of Assistant U.S. Attorneys Ellen Chubin Epstein and Michelle Bradford of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case, as well as Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
District Court Enters Permanent Injunction Against Tennessee Company and Its CEO to Stop Distribution of Unapproved and Misbranded DrugsRead the Press Release
The U.S. District Court for the Eastern District of Tennessee entered a consent decree of permanent injunction against Crown Laboratories Inc. and the firm’s Chief Executive Officer, Jeffrey Bedard, to stop the distribution of unapproved and misbranded drugs, the Department of Justice announced today. The products at issue include urea creams and lotions intended to treat a variety of skin ailments.
The Department filed a complaint in the Eastern District of Tennessee on March 1, at the request of the U.S. Food and Drug Administration (FDA). The complaint alleged that the defendants violated the federal Food, Drug and Cosmetic Act by, among other things, introducing unapproved and misbranded drugs into interstate commerce. Specifically, the complaint alleges that defendants sold a series of dermatological creams, despite the absence of FDA approval or a sufficient showing that these products were safe and effective.
“The public has a right to assume that drugs in the marketplace are safe, effective, have obtained proper approvals, and are labeled with the information necessary to allow for proper use,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “Where drug manufacturers violate these fundamental requirements, the Department of Justice will continue to work aggressively with the FDA to ensure that the pharmaceutical industry follows the rules. Doing so is necessary to protect American consumers.”
As detailed in the complaint, Crown manufactures a variety of prescription and OTC drugs including prescription urea cream and lotion. The products referenced in the complaint include Rea Lo (Urea 40 percent) Cream, Rea Lo (Urea 40 percent) Lotion, Rea Lo 39 (Urea 39 percent) Cream, Dermasorb XM Complete Kit (Urea 39 persent cream and moisturizer), and Sodium Sulfacetamide 10 percent and Sulfur 5 percent (Sodium Sulfacetamide).
As noted in the complaint, the various urea based products were sold as products intended to treat a series of dermatological conditions, such as dry, rough skin, xerosis, ichthyosis, skin cracks and fissures, dermatitis, eczema, psoriasis, keratosis, and calluses. Sodium Sulfacetamide is intended to treat acne vulgaris, acne rosacea, and seborrheic dermatitis. As products designed to provide dermatological treatment, these drugs required FDA approval for their intended uses – approval that was lacking for all of these products. Distributing unapproved drugs in interstate commerce is a violation of the federal Food, Drug, and Cosmetic Act.
In conjunction with the filing of the complaint, the defendants agreed to settle the case and to be bound by a permanent injunction. The injunction requires Crown to stop the manufacturing, selling and introducing into interstate commerce any Rea Lo (Urea 40 percent) Cream, Rea Lo (Urea 40 percent) Lotion, Rea Lo 39 (Urea 39 percent) Cream, Dermasorb XM Complete Kit, Sodium Sulfacetamide, or any drug labeled similarly to such drugs and containing the same active ingredient(s), unless and until an application has been filed with the FDA and approved by the agency.
In addition, within 20 days after the district court’s order, the defendants are required, among other things, to give FDA written notice that they are prepared to destroy all Rea Lo (Urea 40 percent) Cream, Rea Lo (Urea 40 percent) Lotion, Rea Lo 39 (Urea 39 percent) Cream, Dermasorb XM Complete Kit, Sodium Sulfacetamide, and any unapproved drug labeled similarly to such drugs and containing the same active ingredient(s).
The government is represented by Trial Attorney Mary M. Englehart of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Susan Williams of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Attorney General Jeff Sessions Announces Public Safety Officers to Be Awarded Medal of ValorRead the Press Release
Today Attorney General Jeff Sessions is honored to award the Public Safety Officer Medal of Valor to the following law enforcement officers and first responders for their heroic and extraordinary services:
- Special Agents David Bailey and Crystal Griner of the United States Capitol Police and Officers Nicole Battaglia, Kevin Jobe, and Alexander Jensen of the Alexandria Police Department for their heroic efforts on the morning of June 14, 2017. President Donald J. Trump presented these officers with the medals today at a White House ceremony.
Recipients approved by the Attorney General to receive the 2015-2016 Medal of Valor at a future ceremony are:
- Corporals Rafael Ixco and Chad Johnson and Deputies Shaun Wallen and Bruce Southworth (San Bernardino County Sheriff's Department), and Officers Nicholas Koahou and Brian Olvera (San Bernardino Police Department) for their heroic efforts to end the December 2015 terrorist attack in San Bernardino, California.
- Lieutenant William Buchanan (Avery County Sheriff's Office, North Carolina) and Emergency Medical Technician Sean Ochsenbein (Putnam County Rescue Squad, Tennessee) for their poise in rescuing a trapped driver from a burning car in February 2016.
- Firefighter/Harbor Patrol Officer David Poirier Jr. (Redondo Beach Fire Department, California) for single-handedly rescuing three injured people from dangerous surf in February 2016.
- Chief Douglas Schroeder (Hesston Police Department, Kansas) for ending a deadly workplace assault by a gunman in February 2016.
- Engineer Stephen Gunn (Peoria Fire-Medical Department, Arizona) for rescuing a man from a burning house without regard for his own safety in April 2016.
- Patrolman Andrew Hopfensperger Jr. (Antigo Police Department, Wisconsin) for saving many lives during a gunman’s assault on students at a prom in April 2016.
These recipients were recommended by the Medal of Valor Review Board and approved by the Attorney General. The Medal of Valor is the highest national award for public safety officers and is given to recognize an act of extraordinary valor above and beyond the call duty.
The Bureau of Justice Assistance will continue receiving nominations for the 2016-2017 class through Monday, July 31, 2017. Nominations may be submitted here: https://www.bja.gov/programs/medalofvalor/index.html.
Statement by Attorney General Jeff Sessions on Recommendations from the Task Force on Crime Reduction and Public SafetyRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the work of the Task Force on Crime Reduction and Public Safety:
"Every American, no matter who they are or where they live, has the right to be safe in their homes and neighborhoods. And yet, in many locations, the violent crime rate is rising, and in some of our urban areas, the increase is staggering. Reducing this crime surge is a top priority for President Trump and the Department of Justice. Consistent with the President's Executive Order on a Task Force on Crime Reduction and Public Safety, I created the Task Force in February and it has provided me with recommendations on a rolling basis. Dedicated professionals from throughout the Department have been listening to our partners in state, local, and tribal law enforcement; identifying successful violent crime reduction strategies; and developing recommendations on actions the Department can take to help improve public safety.
"I have been acting on the Task Force's recommendations to set the policy of the Department. I will continue to review all of the Task Force's recommendations, and look forward to taking additional steps towards ensuring safer communities for all Americans."
Northern California Real Estate Investor Sentenced to Prison for Rigging Bids at Public Foreclosure AuctionsRead the Press Release
After being convicted at trial, a Northern California real estate investor was sentenced today for his role in a conspiracy to rig bids at public real estate foreclosure auctions, the Department of Justice announced.
Alvin Florida Jr. was charged on Nov. 19, 2014, in an indictment returned by a federal grand jury in the Northern District of California. He was convicted on Dec. 15, 2016, of conspiring to rig bids at foreclosure auctions in Alameda County. Today, Florida was sentenced to serve 21 months in prison and to serve three years of supervised release. In addition to his term of imprisonment, Florida was ordered to pay a criminal fine of $325,803.
Between May 2008 and December 2010, Florida conspired with others not to bid against one another, but instead designated a winning bidder to obtain selected properties. The members of the conspiracy then held second, private auctions to award the properties to members of the conspiracy and determine payoffs for other conspirators who had agreed not to bid against each other at the public auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held.
The primary purpose of the conspiracies was to suppress and eliminate competition in order to obtain selected real estate offered at Alameda County public foreclosure auctions at noncompetitive prices. When real estate properties are sold at public auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with the remaining proceeds, if any, paid to the homeowner.
The sentence announced today is a result of an ongoing investigation into bid rigging at public real estate foreclosure auctions in California’s Alameda, Contra Costa, San Francisco and San Mateo counties.
The investigation is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office.
Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Justice Department Files Lawsuit Against Technical Marine Maintenance Texas and Gulf Coast Workforce Alleging Discrimination Based on Citizenship StatusRead the Press Release
The Justice Department filed a lawsuit today against Louisiana-based companies Technical Marine Maintenance Texas LLC, which provides contract shipyard labor, and Gulf Coast Workforce LLC, a related company, alleging that they violated the Immigration and Nationality Act (INA) by discriminating against applicants and employees during the employment eligibility verification process based on the workers’ citizenship status.
According to the complaint, from at least January 2014 until at least July 2017, Technical Marine Maintenance Texas limited the documentation workers could provide to establish their work authorization based on the workers’ citizenship status. Specifically, the company asked U.S. citizens to produce “IDs” and Social Security cards, while requesting immigration documents from non-U.S. citizens. Under the INA, all workers, regardless of their citizenship status, must be allowed to choose from among the valid documentation that proves their employment eligibility. The INA specifically prohibits employers from discriminating by limiting workers’ choices based on their citizenship status. The complaint also alleges that Gulf Coast Workforce is liable for Technical Marine Maintenance Texas’s actions because Gulf Coast employs or jointly employs the affected workers.
“The law protects both U.S. citizens and non-citizens from discriminatory obstacles during the Form I-9 or E-Verify processes,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “Employers cannot limit the types of documents a worker can present to prove employment authorization, and if this limitation occurs because of citizenship status or national origin, the Civil Rights Division will vigorously enforce the law.”
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
El Departamento de Justicia Presenta una Demanda Judicial Contra Technical Marine Maintenance Texas y Gulf Coast Workforce Alegando Discriminación por Motivos de Estatus de CiudadaníaRead the Press Release
WASHINGTON – El Departamento de Justicia interpuso hoy una demanda contra dos empresas en Louisiana, Technical Marine Maintenance Texas LLC, que suministra mano de obra por contrato para astilleros, y Gulf Coast Workforce LLC, una empresa relacionada, alegando que vulneraron la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a postulantes y empleados durante el proceso de verificación de la elegibilidad para trabajar por motivos de su estatus de ciudadanía.
Según la demanda, desde al menos enero del 2014 hasta al menos julio del 2017, Technical Marine Maintenance Texas limitó los documentos que los trabajadores podían presentar para establecer su autorización para trabajar con base en el estatus de ciudadanía de dichos trabajadores. En concreto, la empresa pidió que los ciudadanos estadounidenses mostraran sus y tarjetas de seguro social, mientras que pidió a aquellos que no eran ciudadanos estadounidenses documentos migratorios. Según la INA, se debe permitir a todos los trabajadores, independientemente de su estatus de ciudadanía, la posibilidad de elegir de entre los documentos válidos que demuestren su elegibilidad para trabajar. La INA específicamente prohíbe que los empleadores discriminen al limitar, con base en su estatus de ciudadanía, las opciones que los trabajadores tienen a su disposición. La demanda también alega que Gulf Coast Workforce es responsable de las acciones de Technical Marine Maintenance Texas porque Gulf Coast emplea o emplea conjuntamente a los trabajadores afectados.
La Ley protege tanto a personas que son ciudadanos de los Estados Unidos como los que no de barreras discriminatorias durante los procesos del Formulario I-9 o E-Verify declaró el Fiscal General Auxiliar en funciones, Tom Wheeler de la División de Derechos Civiles. Los empleadores no pueden restringir los tipos de documentos que un trabajador puede presentar para mostrar su autorización para trabajar, y si tal restricción se hace por motivos del estatus de ciudadanía o la nacionalidad de origen del individuo, la División de Derechos Civiles ejecutará la ley enérgicamente.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con la Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a otros requisitos documentales por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen, o a la discriminación por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Download Technical Marine Maintenance Gulf Coast Complaint (en inglés)
D.C. Tax Return Preparer Sentenced to Prison for Preparing Fraudulent Tax ReturnsRead the Press Release
A Washington, D.C. tax return preparer was sentenced to 15 months in prison today for preparing fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Joanne Little, 60, of Suitland, Maryland, worked as a return preparer in Washington, D.C. at Speedy Tax Service, a tax preparation business that previously operated under the name Instant Tax Service. Little prepared federal income tax returns for tax years 2009 through 2014 that sought refunds to which her clients were not entitled by including inflated charitable deductions, fictitious unreimbursed employee expenses and false business losses. Little admitted to causing a tax loss of $262,714.
In addition to the term of prison imposed, U.S. District Court Judge Reggie B. Walton ordered Little to serve one year of supervised release and to pay restitution to the Internal Revenue Service (IRS) in the amount $262,714. Little pleaded guilty in February 2016.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Jason Scheff and Assistant Chief Karen Kelly 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.
Justice Department Sues Puerto Rico Business for Violating Employment Rights of United States Army ReservistRead the Press Release
The Justice Department filed a complaint today alleging that Farmacia Lugo, Inc. (Farmacia Lugo), a business based in Puerto Rico, violated the employment rights of U.S. Army Reservist Anna J. Santiago under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). Santiago has served her country as a member of the Army Reserves since 2012. She currently holds the rank of Private 1st Class and serves as a culinary specialist.
According to the complaint, filed in the United States District Court for the District of Puerto Rico, Santiago’s military service was a motivating factor in Farmacia Lugo’s decision to terminate her employment. The Department claims that, in 2014 and 2015, Santiago served multiple periods of military duty which caused her to be absent from her job as a pharmacy technician. The complant alleges that during and after Santiago’s periods of military service, the owner of Farmacia Lugo began making negative statements about Santiago and her military service obligations. This pattern of disparagement of Santiago’s military service by her employer was ongoing and continued through November 2015 after she returned from military training. The complaint further alleges that, on November 11, 2015, the owner of Farmacia Lugo terminated Santiago in front of other employees and customers. The complaint alleges that during the termination, the employer told PFC Santiago that it was appropriate that it occurred on Veterans Day because her military service was the cause of her termination.
“The men and women who bravely wear our nation’s uniform need to know that they will be protected from unjust terminations when they return from periods of military service,” said Acting Assistant Attorney General Thomas Wheeler. “The Department of Justice is committed to aggressively enforcing USERRA to protect our brave service members, whose rights do not end with their first day back on the job.”
“USERRA guarantees the rights of those who serve our nation with honor and distinction to return to civilian employment upon returning from military service,” said Rosa E. Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “This lawsuit demonstrates our steadfast commitment to leverage every resource and tool at the federal government’s disposal to protect the rights of the men and women who defend our freedom and safeguard our way of life.”
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.
The lawsuit seeks damages equal to the amount of Santiago’s lost wages and benefits caused by Farmacia Lugo’s failure to comply with USERRA, as well as liquidated damages (in an amount equal to lost wages) for what the Department alleges is Famacial Lugo’s reckless disregard for USERRA. It also seeks orders requiring Farmacia Lugo’s compliance with all provisions of USERRA and requiring Farmacia Lugo 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 jointly handled by the the U.S. Attorney’s Office for the District of Puerto Rico and 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 Army Reserves 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 the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
INTERPOL Washington Participates in AMBER Alert SymposiumRead the Press Release
INTERPOL Washington has provided more than 6.6 million investigative leads regarding child sexual exploitation and abuse to NCMEC.INTERPOL Washington-U.S. National Central Bureau-recently participated in the “National Symposium for AMBER Alert Coordinators and Clearinghouse Managers Symposium” hosted by AMBER Alert Training and Technical Assistance Program, at the National Criminal Justice Training Center at Fox Valley Technical College. Held June 27-29, in Minneapolis, Minnesota, the symposium served as an opportunity for those involved with the AMBER Alert program across the United States and overseas to participate in practical training and develop relationships with each other.
Supervisory INTERPOL Washington Analyst Michelle Ford-Stepney participated in a panel on cross-border child abductions, focusing her remarks on International Parental Abductions. Even though INTERPOL Washington does not participate directly in the AMBER Alert system, the agency does partner with law enforcement to seek the return of missing children to their homes of origin. INTERPOL Washington also works with the National Center for Missing and Exploited Children (NCMEC) to provide law enforcement officials urgent and timely leads and information to prevent child sexual exploitation and abuse.
INTERPOL’s I-24/7 secure messaging system is the tool used to quickly and effectively make available the information and leads to investigative law enforcement entities around the world. Foreign Universal Resource Locators (URL) Internet leads received by INTERPOL Washington are provided to NCMEC. Images and other forms of media containing actual evidence are provided to U.S. law enforcement agencies for potential action. Today, more than 6.6 million reports have been made available through INTERPOL’s I-24/7.
The training was presented by the leadership of the U.S. Department of Justice, Office of Justice Programs, Office of Juvenile Justice and Delinquency Prevention, and the AMBER Alert Training and Technical Assistance Program in partnership with the NCMEC. The objective was to learn current AMBER Alert strategies from partners nationwide by identifying AMBER Alert successes, lessons learned, and current training and technical assistance resources and needs.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Federal Court Bars Louisiana Tax Return Preparer from Preparing Tax Returns for OthersRead the Press Release
A federal court in Louisiana has permanently barred Finecia Draper from preparing federal income tax returns for others, the Justice Department announced today.
In its complaint, the government alleged that Finecia Draper of Simmesport, Louisiana prepared false returns through her sole proprietorship, B&R’s Unlimited Fashion located at 245 Moreau Street in Simmesport, Lousiana. In addition to barring Draper from preparing tax returns, the court ordered her to prominently post a notice in her place of business stating that she is barred from preparing tax returns for others.
According to the government’s complaint, Draper prepared tax returns that fraudulently understated her customers’ income and tax liabilities and/or overstated the refunds they were entitled to receive. According to the complaint, Draper did so by submitting Schedules C, Profit or Loss From Business, with the returns to fabricate or inflate business losses claimed by her customers. In many of the examples cited in the complaint, the taxpayer did not even own or operate a business. The bogus losses that Draper claimed fraudulently understated the income her customers earned which resulted in underreporting their tax liabilities and overstating the refunds they were due, according to the complaint. The complaint additionally alleged that Draper fraudulently claimed and/or inflated the Earned Income Tax Credit (EITC) on returns she prepared.
From 2011 to 2015, Draper prepared over 2,000 returns, according to the complaint. The complaint alleged that audits of 163 returns prepared by Draper in 2011, 2012 and 2013 revealed that she overstated refunds and understated tax liability by over $275,000 in the aggregate.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2017. The IRS has some tips on their website for choosing a tax preparer.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Attorney General Sessions Announces Immigration Compliance Requirements for Edward Byrne Memorial Justice Assistance Grant ProgramsRead the Press Release
The Department of Justice today posted a solicitation for the Edward Byrne Memorial Justice Assistance Grant Programs (“Byrne JAG”). Recipients for FY 2017 will be notified of new conditions of their grants that will increase information sharing between federal, state, and local law enforcement, ensuring that federal immigration authorities have the information they need to enforce immigration laws and keep our communities safe.
"So-called 'sanctuary' policies make all of us less safe because they intentionally undermine our laws and protect illegal aliens who have committed crimes,” Attorney General Jeff Sessions said. “These policies also encourage illegal immigration and even human trafficking by perpetuating the lie that in certain cities, illegal aliens can live outside the law. This can have tragic consequences, like the 10 deaths we saw in San Antonio this weekend. As part of accomplishing the Department of Justice's top priority of reducing violent crime, we must encourage these 'sanctuary' jurisdictions to change their policies and partner with federal law enforcement to remove criminals. From now on, the Department will only provide Byrne JAG grants to cities and states that comply with federal law, allow federal immigration access to detention facilities, and provide 48 hours notice before they release an illegal alien wanted by federal authorities. This is consistent with long-established cooperative principles among law enforcement agencies. This is what the American people should be able to expect from their cities and states, and these long overdue requirements will help us take down MS-13 and other violent transnational gangs, and make our country safer."
INTERPOL Washington Participates in Counter-ISIS WorkshopRead the Press Release
On July 12, 2017, officials from INTERPOL and INTERPOL Washington—the U.S. National Central Bureau-- participated in a gathering of the Small Group of the Global Coalition to Defeat ISIS who met at the U.S. Department of State to synthesize the senior level Global Coalition meetings and discuss priorities to build on the progress in Mosul and Raqqa. The Small Group consists of key coalition stakeholders who play a major role, whether military or non-military, in the campaign to defeat ISIS. The day before, the 72-member Global Coalition met to discuss how to speed up Coalition efforts to defeat ISIS in the remaining areas it holds in Iraq and Syria, and maximize pressure globally on its branches, affiliates, and networks. The Small Group meetings sought to assess the campaign and discuss ways to intensify pressure on ISIS in each of the critical areas of counter finance, foreign terrorist fighters, stabilization support, and communications.
INTERPOL Washington Assistant Directors Royce Walters and Scott Suitts discussed “INTERPOL Tools and Techniques” during a panel on “Radical Information Sharing.” This panel explored the critical role information sharing plays between countries seeking to detect and disrupt ISIS plotting and ISIS-inspired homegrown attacks. The session addressed both available and merging tools, as well as strategies to overcome barriers to information sharing that can slow progress. The goal for the panel was to encourage attendees from various agencies to discuss the latest policy and practical developments within their institutions.
Walters and Suitts emphasized the opportunities for additional information sharing on a case-by-case basis between agencies with diverse roles–within single countries and between different countries. Additional progress in this area would make it possible to build a more comprehensive, cross-cutting picture of known and potential terrorists, and possibly to flag a higher percentage of potential attacks earlier in their planning stages, they said.
In addition, they described current information-sharing architecture, including INTERPOL’s I-24/7 and Stolen and Lost Travel Documents (SLTD) databases. They underscored the importance of collating information from diverse sources and regions to obtain a more comprehensive picture of potential terrorist activity. For example, taken separately, known associations with violent extremists in one country, travel into areas of conflict in a second country, and suspect financial transactions in a third country may not provide sufficient grounds for heightened surveillance. However, taken together, these discrete activities may form a pattern that may indicate a connection with potential terrorist action.
According to Walters, “Many coalition partners expressed gratitude to the Iraqi government and military for the significant advances that have occurred over the last few months to defeat ISIS and liberate large areas of the country. It is clearly understood; however, that the fight is far from over. Some ISIS fighters will invariably attempt to blend in with the Iraqi population or try to enter another country. Coalition members recognize this and expressed a need for continued collaboration and tighter border controls to address this threat.”
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Alleged Head of Wildlife Smuggling Ring Extradited from AustraliaRead the Press Release
Guan Zong Chen (“Graham Chen”), a Chinese national was arraigned today in federal court in Boston, Massachusetts on charges that he led a conspiracy to illegally export (smuggle) $700,000 worth of wildlife items made from rhinoceros horn, elephant ivory and coral from the United States to Hong Kong. Chen was arrested last year when he traveled from China to Australia and today’s hearing was his first court appearance on an indictment returned by a Boston grand jury in 2015 and unsealed in anticipation of the hearing.
According to the eight-count indictment, Chen purchased the wildlife artifacts at U.S. auction houses located in California, Florida, Ohio, Pennsylvania, New York and Texas. He conspired with another Chinese national, a recent college graduate in China to travel to the United States to pick up the purchased items and either hand carry or arrange for them to be mailed to another co-conspirator that owned a shipping business in Concord, Massachusetts. The shipper then repacked the wildlife items and exported (smuggled) them to Hong Kong with documents that falsely stated their contents and value and without obtaining required declarations and permits. In April 2014, Chen visited the United States and visited the shipper in Concord, Massachusetts. During the visit with the shipper, CHEN instructed the shipper to illegally export (smuggle) a sculpture made from elephant ivory to Hong Kong on Chen’s behalf and falsely declared it to be made of wood and worth $50.
The unsealing of the indictment and court appearance were was announced today by Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney William D. Weinreb of the District of Massachusetts. In announcing the case today, Acting Assistant Attorney General Wood and Acting U.S. Attorney Weinreb expressed their appreciation to the Australian Federal Police and the Australian Attorney-General’s Department for their help in apprehending Chen and extraditing him to the United States.
Trade in rhinoceros horn, elephant ivory and coral have been regulated since 1976 under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 175 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. Animals listed under CITES cannot be exported from the United States without prior notification to, and approval from, the U.S. Fish & Wildlife Service.
was apprehended as part of Operation Crash, an ongoing effort by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice to detect, deter, and prosecute those engaged in the illegal killing of and trafficking in protected species including rhinoceros and elephants.
An indictment contains allegations that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The investigation is continuing and is being handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement and the Justice Department’s Environmental Crimes Section, with assistance from the U.S. Attorney’s Office for the District of Massachusetts and support on the extradition from DOJ's Office of International Affairs and the U.S. Marshals Services in the District of Massachusetts. The government is represented by Senior Litigation Counsel Richard A. Udell and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
INTERPOL Washington Provides Support to 400th Foreign Fugitive Arrest by ICERead the Press Release
In February 2017, INTERPOL Washington—the U.S. National Central Bureau--and the Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) determined that a fugitive residing in the New York City area was a positive match for an INTERPOL Red Notice for a person wanted in Spain for a homicide. Last month, their investigative work resulted in the arrest of Rafael Alberto-Burgos, the 400th foreign fugitive arrest of the fiscal year for ERO. INTERPOL Washington played a key role in facilitating collaboration between ERO and the Spanish National Police in Barcelona. Read the ICE news release here.
ICE is the principal investigative arm of the U.S. Department of Homeland Security. A key partner of INTERPOL Washington, ICE details personnel to support the agency mission. ICE’s primary mission is to promote homeland security and public safety through the criminal and civil enforcement of federal laws governing border control, customs, trade and immigration.
One of the primary missions of INTERPOL and INTERPOL Washington is to seek the location, and ultimately the arrest, of fugitives wanted in the U.S. and in other countries. INTERPOL Washington assists federal, state, local, and tribal authorities in the U.S. seeking the location of fugitives who have fled the U.S., and assists foreign police in locating their fugitives believed to be in the U.S. INTERPOL Washington is also responsible for seeking the publication of all INTERPOL Notices, including Red or wanted fugitives Notices, on behalf of U.S. authorities, and alerting U.S. authorities to the existence of INTERPOL Notices published on behalf of other countries.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Photograph courtesy of ICE ERO. INTERPOL Washington provided critical support to ERO’s 400th foreign fugitive arrest of the fiscal year.Former Drug Enforcement Administration Task Force Officer Pleads Guilty to Firearm and Conversion ChargesRead the Press Release
A former Drug Enforcement Administration (DEA) task force officer pleaded guilty today to unlawfully possessing a firearm in furtherance of a crime of violence and later conspiring to misappropriate money seized by the DEA during the execution of a search.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge Monte Cason of the Department of Justice Office of the Inspector General (DOJ OIG), and Dallas Field Office and Chief Inspector Brian M. McKnight of the DEA’s Office of Professional Responsibility (OPR) made the announcement.
Karl Emmett Newman, 50, of Kentwood, Louisiana, pleaded guilty before U.S. District Judge Eldon E. Fallon of the Eastern District of Louisiana to a two-count superseding information. According to admissions made in connection with the guilty plea, Newman unlawfully carried a firearm in furtherance of an August 2015 robbery, which was disguised as an execution of a search warrant of a drug dealer. Newman further admitted to conspiring to misappropriate money that was confiscated by the DEA during an October 2015 search of the residence of another individual.
Newman was originally charged on May 13, 2016, in an indictment, and was charged with additional offenses on October 7, 2016, in a superseding indictment. Former DEA task force officer Johnny Jacob Domingue, 28, of Maurepas, Louisiana, was arrested on a criminal complaint on May 12, 2016, and was also charged in the October 7, 2016 superseding indictment with falsifying records in a federal investigation. Domingue’s case remains pending.
In addition to serving as DEA task force officers, Newman and Domingue previously served as deputies with the Tangipahoa Parish, Louisiana, Sheriff’s Office.
The FBI, DOJ OIG and DEA-OPR investigated the case. Assistant Chief Diidri Robinson and Trial Attorney Antonio Pozos of the Criminal Division’s Fraud Section are prosecuting the case.
INTERPOL Washington Hosts Sport Security Senior Management CourseRead the Press Release
National Center for Spectator Sports Safety and Security (NCS4) group at INTERPOL WashingtonThe National Center for Spectator Sports Safety and Security (NCS4) in partnership with INTERPOL, presented the Sport Security Senior Management Course at a Working Group Meeting at INTERPOL Washington on 17 July. This course is a scenario-based practicum of primary areas within the field of sporting event policing and security management. It is intended to prepare senior law enforcement officials involved in the decision-making process for preparation and response to a large-scale incident during major and international sporting events.
The actual 3-day course is scheduled to be presented at the IPSG in Lyon on 12-14 Sept 2017.
District of Columbia National Guard Head Visits INTERPOL WashingtonRead the Press Release
On July 18, 2017, the Acting Commanding General of the District of Columbia (D.C.) National, Guard Brig. Gen. William J. Walker, visited INTERPOL Washington. General Walker assumed his current duties on January 20, 2017, and is responsible for operational readiness and command and control of the D.C. Army and Air National Guard units with an authorized end strength of 2,700 soldiers and airmen. He previously served as the Commander, Land Component Command, of the D.C. National Guard. In 2014, General Walker retired from civilian federal service as a career special agent of the U.S. Drug Enforcement Administration where he was a member of the Senior Executive Service.
The D.C. National Guard’s mission bridges the gap between Department of Defense and non-Defense institutions in the fight against illicit drugs and transnational threats to the Homeland. The program assists community-based groups to educate their communities; to assist in criminal intelligence gathering and information sharing; and to disrupt the drug market by supporting arrest operations. The counter-drug program conducts aerial reconnaissance, providing support to various District and federal law enforcement agencies and criminal analyst and linguist support to law enforcement agencies. In support of this mission area, in 2013 the D.C. National Guard assigned one detailee, and recently added a second, to INTERPOL Washington’s Drug Division to support criminal analysis and information-sharing activities.
Acting Director of INTERPOL Washington Wayne Salzgaber welcomed the General and his staff members to the agency before turning the session over to a senior advisor to present the orientation briefing. The briefing covered the critical roles of INTERPOL and INTERPOL Washington tools and services in the fight against transnational crime. The briefing placed a special emphasis on the expansion of collaborative efforts between INTERPOL Washington and the Department of Defense in the sharing of biometric and other law enforcement data. Acting Director Salzgaber thanked General Walker for his continued support to the INTERPOL mission. This is particularly significant as the D.C. National Guard is the first and only National Guard unit represented at INTERPOL Washington.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
INTERPOL Washington Acting Director H. Wayne Salzgaber and Acting Commanding General of the D.C. National Guard William J. Walker.Attorney General Sessions Issues Policy and Guidelines on Federal Adoptions of Assets Seized by State or Local Law EnforcementRead the Press Release
Attorney General Jeff Sessions today announced a new Department of Justice policy (attached) regarding the federal adoption of assets seized by state or local law enforcement under state law.
The Department’s new policy strengthens the civil asset forfeiture program to better protect victims of crime and innocent property owners, while streamlining the process to more easily dismantle criminal and terrorist organizations.
The policy and guidelines were formulated after extensive consultation with the Task Force on Crime Reduction and Public Safety, as well as line Assistant United States Attorneys, career officials in the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and career Main Justice attorneys.
In issuing this new policy, Attorney General Sessions made the following remarks to law enforcement officials:
“Good morning, and thank you all for being here. I especially want to thank our law enforcement partners like the Fraternal Order of Police, the National Sheriffs’ Association, the Major City Chiefs Association, the IACP, and so many others from all over the country who are here. Thank you for your service to this country and for keeping us all safe.
“As any of these law enforcement partners will tell you and as President Trump knows well, civil asset forfeiture is a key tool that helps law enforcement defund organized crime, take back ill-gotten gains, and prevent new crimes from being committed, and it weakens the criminals and the cartels. Even more importantly, it helps return property to the victims of crime. Civil asset forfeiture takes the material support of the criminals and instead makes it the material support of law enforcement, funding priorities like new vehicles, bulletproof vests, opioid overdose reversal kits, and better training. In departments across this country, funds that were once used to take lives are now being used to save lives.
“It also removes the instrumentalities of crimes, such as illegal firearms, ammunition, explosives and property associated with child pornography from criminals—preventing them from being able to use these tools in further criminal acts.
“President Trump has directed this Department of Justice to reduce crime in this country, and we will use every lawful tool that we have to do that. We will continue to encourage civil asset forfeiture whenever appropriate in order to hit organized crime in the wallet.
“At the same time, we must protect the rights of the people we serve. Law-abiding people whose property is used without their knowledge or without their consent should not be punished because of crimes that others have committed.
“Now, let me just say, in the vast majority of cases, this is not an issue. Our law enforcement officers do an incredible job. In fact, over the last decade, four out of five administrative civil asset forfeitures filed by federal law enforcement agencies were never challenged in court.
“Even so, we must take every precaution to protect the rights of claimants in that small minority of cases.
“And so today, the Department of Justice is issuing legal guidance that will clarify DOJ policy on the adoption of seized assets. It will return us to longstanding DOJ policy—and also provide additional, supplemental protections for law-abiding Americans. This will make us more effective at bankrupting organized criminals and at safeguarding the property of law-abiding Americans.
“Under today’s guidance, the federal government will not adopt seized property unless the state or local agency involved provides information demonstrating that the seizure was justified by probable cause. We will accomplish this through a new adoption form that state and local law enforcement must fill out before we will agree to adopt any property, which will include the necessary information to allow Department lawyers to carefully review and determine whether adoption is proper. Further, law enforcement agencies who wish to participate in the Department’s Equitable Sharing Program now must now provide their officers with enhanced training on asset forfeiture laws.
“The Department will adopt smaller seizures of cash—between $5,000 and $10,000—only if there exists some level of criminality or with the express concurrence of the U.S. Attorney’s office.
“When I was in the Senate, I worked with Senator Schumer to make modifications to the civil asset forfeiture program. We required probable cause for the seizure of property. And we raised the burden on the government, who has the initial burden in all of these cases, to the same preponderance of the evidence standard used in all civil cases. In addition, if the government lost the case, then the government pays attorneys’ fees. I believe those were good reforms that strengthened the program.
“Further, to better protect claimants, the Department will expedite the review of civil asset forfeiture cases. State and local law enforcement agencies requesting federal adoption must do so within 15 calendar days following the date of seizure. The adopting federal agency must then send notice to interested parties within 45 days of the date of seizure. This is twice as fast of a review as is required by statute. This streamlined process will ensure that people receive speedy resolutions of their cases, and that rightful owners will get their property back as soon as possible.
“In addition to these safeguards on federal adoptions, I am asking Department attorneys to proceed with an abundance of caution when handling all forfeitures involving vehicles and especially residences. I think that Department attorneys should think hard before they agree to forfeit these types of property, or waive any asset thresholds associated with them. Just like with cash seizures, if we operate this program in a careful and responsible way, something I believe the American people expect and deserve with a program such as this, the Department’s federal asset forfeiture program will be an effective tool, while at the same time protecting the rights of property owners.
“Finally, I am directing agencies and components adopting seized property to prioritize assets that will most effectively advance our overall goal of reducing violent crime. We need to send clear message that crime does not pay.
“This policy is effective immediately and applies to all new requests for adoption.
“With this new policy, the American people can be confident knowing that we are taking action to defund criminals and at the same time protecting the rights of law-abiding people.”
Former Employee of U.S. Government Contractor in Afghanistan Pleads Guilty to Accepting over $250,000 in Kickbacks from SubcontractorRead the Press Release
A former employee of a U.S. government contractor in Afghanistan pleaded guilty today to accepting over $250,000 in illegal kickbacks from an Afghan subcontractor in return for his assistance in obtaining subcontracts on U.S. government contracts.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney John A. Horn of the Northern District of Georgia, Special Agent in Charge John Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office, Atlanta Resident Agency, Special Inspector General for Afghanistan Reconstruction John F. Sopko, and Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU) made the announcement.
Nebraska McAlpine, 56, of Smyrna, Georgia, pleaded guilty in Atlanta before U.S. District Judge Mark H. Cohen to a one-count information filed on June 19, in the Northern District of Georgia, charging him with one count of accepting illegal kickbacks. Sentencing is scheduled for October 18.
In connection with his plea, McAlpine admitted that he maintained a principal place of residence within the Northern District of Georgia and was employed as a Project Manager for an American defense contractor in Kabul, Afghanistan (the Prime Contractor). McAlpine admitted that he and an Afghan executive agreed that in exchange for illicit kickbacks, McAlpine would ensure that the Prime Contractor awarded lucrative subcontracts to the executive’s companies. McAlpine repeatedly told his supervisors that these companies should be awarded “sole source” subcontracts, which allowed them to supply services to the Prime Contractor without having to competitively bid on them, he admitted. As a result of the kickback scheme, the Prime Contractor paid over $1.6 million to the subcontractor to assist with maintaining the Afghanistan Ministry of the Interior Ultra-High Frequency (“UHF”) radio communications system in Kabul, Afghanistan, McAlpine admitted.
McAlpine further admitted that the executive agreed to pay kickbacks to McAlpine totaling approximately 15% of the value of the subcontracts. In 2015 and 2016, McAlpine accepted over $250,000 in kickbacks from the executive, and he hid these kickbacks from his employer by storing the cash payments in his personal effects and then physically transporting them himself to the U.S., he admitted. McAlpine further admitted that he then deposited the majority of these funds in amounts less than $10,000 into his bank accounts at bank branches in the Atlanta metropolitan area.
DCIS, SIGAR and Army CID-MPFU investigated the case. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Thomas J. Krepp of the Northern District of Georgia are prosecuting the case.
Biofuel Company Owners Sentenced for Conspiracy and Fraud ChargesRead the Press Release
The co-owners of an Indiana biofuel producer were sentenced today in the Northern District of Indiana by Senior Judge James T. Moody, announced the Justice Department.
Fred Witmer, 46, and Gary Jury, 58, of Triton Energy LLC and Gen2 Renewable Diesel LLC pleaded guilty to conspiracy, fraud, and false statements in October 2016. Witmer and Jury were sentenced to 57 months in prison and 30 months in prison, respectively. According to their pleas, Witmer and Jury generated over $60 million in fraudulent tax credits and U.S. Environmental Protection Agency (EPA) renewable fuel credits (RIN credits). Witmer admitted to fraudulently claiming tax credits and RIN credits on non-qualifying renewable fuel and to deceiving the purchasers of his RIN credits. Although Witmer represented that the fuel was used as transportation fuel, he admitted selling it to be made into fire starter logs and for asphalt and cement production. Jury admitted conspiring to fraudulently claim tax credits and to providing false statements to the EPA.
“The defendants purposefully defrauded the federal government, taking illegal advantage of a program created by Congress to help our nation achieve energy, economic, and environmental goals,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “These crimes have been prosecuted to the fullest extent, and our actions here demonstrate that the Justice Department will continue to prosecute fraud in the RIN markets.”
“Today’s sentencing sends a strong message that there are serious consequences for activity that defrauds the economy and taxpayers,” said Special Agent in Charge W. Jay Abbott of the Federal Bureau Investigation’s Indianapolis Division. “I commend the excellent cooperation between the prosecutors, agents and other investigators who worked tirelessly to uncover this fraudulent scheme and expose these perpetrators who were manipulating the system for their own gains.”
“Fred Witmer and Gary Jury used their company, Triton, to run a sophisticated shell game and exploit the Alternative Fuel Credit program,” said Chief Don Fort of the Internal Revenue Service’s Criminal Investigation. “Unfortunately for them, our special agents were able to track the movement of paperwork and uncover the deceit behind their actions. We are proud to partner with the EPA and other federal agencies in this important effort to stop those who abuse and illegally claim alternative fuel credits, a growing area of emphasis for IRS-CI.”
“The defendants’ massive fraud in this case undermines the competitive and fair marketplace on which law abiding renewable fuels producers depend,” said Acting Assistant Administrator Larry Starfield for the Environmental Protection Agency’s Office of Enforcement and Compliance Assurance. “This case shows that EPA is fully committed to working with our law enforcement partners to pursue and hold accountable entities that break the law.”
The investigation was conducted by the FBI’s Indianapolis Division, the IRS’ Criminal Investigation Indianapolis Field Office and the EPA’s Criminal Investigation Division.
The government is represented by Environmental Crimes Section Trial Attorney Adam Cullman and Senior Trial Attorney Jeremy Korzenik.
High-Level Justice Department Official Addresses INTERPOL on Cyber and Financial CrimeRead the Press Release
Photograph courtesy of INTERPOL. Associate Deputy Attorney General of the United States Sujit Raman addresses a high-level working group on cyber and financial crime.On July 13, 2017, Sujit Raman, who serves as Associate Deputy Attorney General of the United States, addressed a high-level working group on countering cyber and financial crime sponsored by the International Criminal Police Organization (INTERPOL). In his position, Raman assists the Attorney General and Deputy Attorney General in their oversight of all cyber-related investigations and prosecutions in the United States, and manages all cyber-related policy development in the U.S. Department of Justice.
Over two days, representatives from law enforcement, financial, telecommunications and Internet sectors participated in the conference called “Countering Cyber and Financial Crime: A High-level Dialogue for a New Governance Architecture.” The group’s mission was to develop recommendations for streamlining the global response to escalating cyber and financial crime threats.
During his remarks, Raman reinforced the importance of the Budapest Convention on Cybercrime, which is the first international treaty on crimes committed via the Internet and other computer networks. It deals specifically with copyright infringement, computer-related fraud, child pornography, hate crimes, and violations of network security. Its main purpose is to pursue a common criminal policy aimed at the protection of society against cybercrime, especially by adopting appropriate legislation and fostering international cooperation.
Raman called the Budapest Convention “the governance architecture to address internet crime.” He said that there is no need for a new international cyber agreement, as called for by some countries. He called for countries to “focus on capacity building and training efforts proven so successful in facilitating law enforcement operations and partnerships.” He also lauded INTERPOL’s efforts in building capacity by training police and promoting universal participation in the fight against cyber-crime.
The video of Raman’s remarks is available for viewing on the INTERPOL website.
A long-time federal prosecutor, Associate Deputy Attorney General Raman has led a number of international fraud, public corruption, and national security matters, and has particular expertise in dealing with the implications of technology on criminal and national security investigations. He was educated at Harvard College, Harvard Law School, and the University of Bristol (UK), where he studied as a Marshall Scholar.
Statement by Attorney General Jeff Sessions on the Hawaii District Court’s DecisionRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the Hawaii District Court’s decision:
“Once again, we are faced with a situation in which a single federal district court has undertaken by a nationwide injunction to micromanage decisions of the co-equal Executive Branch related to our national security. By this decision, the district court has improperly substituted its policy preferences for that of the Executive branch, defying both the lawful prerogatives of the Executive Branch and the directive of the Supreme Court.
"The district court has issued decisions that are entrusted to the Executive Branch, undermined national security, delayed necessary action, created confusion, and violated a proper respect for separation of powers. The Supreme Court has had to correct this lower court once, and we will now reluctantly return directly to the Supreme Court to again vindicate the rule of law and the Executive Branch’s duty to protect the nation.”
Social Security Disability Lawyer Sentenced to 12 Years in Prison for Role in More Than $550 Million Social Security Fraud SchemeRead the Press Release
A social security disability lawyer was sentenced today in federal court 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, Kentucky Field Division; Special Agent in Charge Tracey D. Montaño of the Internal Revenue Service Criminal Investigation (IRS-CI) Nashville, Tennessee, 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.
Eric Christopher Conn, 56, of Pikeville, Kentucky, was sentenced by U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky to 12 years in prison, and to pay restitution in an amount in excess of $106 million to the SSA and HHS. Conn pleaded guilty to one count of theft of government money and one count of payment of gratuities. On June 2, Conn fled from federal custody and remains a fugitive. He was not present for his sentencing hearing.
According to the plea, from October 2004 to April 6, 2016, Conn participated in a scheme with former SSA administrative law judge David B. Daugherty and multiple doctors that involved the submission of thousands of falsified medical documents to the SSA. As a result of the scheme, Conn and his co-conspirators obligated the SSA to pay more than $550 million in lifetime benefits to claimants for these fraudulent submissions.
According to the plea, Conn is an attorney whose firm in Floyd County, Kentucky, focused for more than 20 years primarily on representing individuals seeking Social Security disability benefits throughout Kentucky and elsewhere. According to documents filed in connection with the guilty plea, Conn admitted that from December 2004 through April 2011, he paid Daugherty approximately $10,000 a month to award disability benefits to claimants for whom Conn submitted falsified medical documents.
As part of his plea, Conn admitted that he submitted the falsified medical documents, and Daugherty authored decisions granting disability benefits, in well over 1,700 claimants’ cases. Conn admitted that he paid medical professionals to sign medical forms that he fabricated before evaluations of claimants took place. According to the plea, Conn routinely prepared and medical professionals, such as clinical psychologist Alfred Bradley Adkins, signed evaluation reports indicating that claimants had limitations considered disabling by the SSA, irrespective of the claimants’ actual physical or mental conditions. Conn admitted that he received more than $5.7 million in representative fees from the SSA based upon these fraudulent claims.
Conn was indicted last year, along with Daugherty and Adkins. They were charged with conspiracy, fraud, false statements, money laundering and other related offenses in connection with the scheme, and that indictment remains pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Daugherty pleaded guilty on May 12 to a two-count information charging him with receipt of illegal gratuities. 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. Both Daugherty and Adkins are awaiting sentencing.
The SSA-OIG, FBI, IRS-CI and HHS-OIG are investigating 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.
Former Suzuki Employee Pleads Guilty to Submitting False Report to the EPARead the Press Release
Wayne Powell, a former employee of American Suzuki Motor Corporation headquartered in Brea, California, pleaded guilty today in a federal court in Detroit, Michigan, to violating the Clean Air Act by submitting a false end-of-year report to the U.S. Environmental Protection Agency, the Justice Department announced.
According to the plea agreement, Powell, a Government Relations Analyst for Suzuki, was responsible for submitting documents to the EPA regarding Suzuki’s compliance with motorcycle emission standards. Powell was in charge of submitting Suzuki’s 2012 application to the EPA for a “certificate of conformity,” which allows a vehicle manufacturer to sell vehicles in the United States. Rather than seek certification of each motorcycle engine family, Suzuki combined the certifications of multiple engine families and averaged their emission standards based on the total number of motorcycles in each family. At the end of the model year, Suzuki was required to submit to the EPA an end-of-year report to show that it was in compliance with emission standards.
The average that Powell created combined emissions of hydrocarbons and nitrogen oxides for the 23,528 Class III model year 2012 motorcycles that Suzuki imported, distributed and sold in the U.S. The average violated the emission limit. The first end-of-year report Powell submitted to the EPA in 2013 purported to utilize “banked credits” to offset the excess emissions. However, Suzuki had not participated in the banked credit program and therefore had no credits to use. As a result, the EPA informed Powell it could not accept the report. Subsequently, on March 28, 2014, Powell submitted an amended end-of-year report to the EPA’s Office of Transportation and Air Quality in Ann Arbor in which he altered the numbers of four motorcycle engine families, resulting in a calculation that was within the emission limit. The altered numbers were false. Powell also deceitfully represented to the EPA in the email that accompanied the amended report that “[t]he computer software that we use to gather this information did not count all of the units” and that he had “corrected some mistakes on the 2012 report.”
Powell faces a statutory maximum penalty of two years in prison and a fine of up to $250,000.
Acting Assistant Attorney General Jeffrey H. Wood and Acting U.S. Attorney Daniel L. Lemisch thanked the U.S. Environmental Protection Agency’s Criminal Investigation Division, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the U.S. Postal Inspection Service for their work in this investigation. The case is being prosecuted by Senior Counsel Kris Dighe of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Craig Weier of the U.S. Attorney’s Office for the Eastern District of Michigan.
Department of Justice Seeks to Recover over $100 Million Obtained from Corruption in the Nigerian Oil IndustryRead the Press Release
The Department of Justice announced today the filing of a civil complaint seeking the forfeiture and recovery of approximately $144 million in assets that are allegedly the proceeds of foreign corruption offenses and were laundered in and through the U.S. Acting Assistant Attorney General Kenneth A. Blanco, Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office, Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division, and Chief Don Fort of the IRS Criminal Investigation (IRS-CI) made the announcement.
According to the complaint, from 2011 to 2015, Nigerian businessmen Kolawole Akanni Aluko and Olajide Omokore conspired with others to pay bribes to Nigeria’s former Minister for Petroleum Resources, Diezani Alison-Madueke, who oversaw Nigeria’s state-owned oil company. In return for these improper benefits, Alison-Madueke used her influence to steer lucrative oil contracts to companies owned by Aluko and Omokore. The complaint alleges that the proceeds of those illicitly awarded contracts were then laundered in and through the U.S. and used to purchase various assets subject to seizure and forfeiture, including a $50 million condominium located in one of Manhattan’s most expensive buildings – 157 W. 57th Street – and the Galactica Star, an $80 million yacht.
“The United States is not a safe haven for the proceeds of corruption,” said Acting Assistant Attorney General Blanco. “The complaint announced today demonstrates the Department’s commitment to working with our law enforcement partners around the globe to trace and recover the proceeds of corruption, no matter the source. Corrupt foreign officials and business executives should make no mistake: if illicit funds are within the reach of the United States, we will seek to forfeit them and to return them to the victims from whom they were stolen.”
“Business executives who engage in bribery and illegal pay-offs in order to obtain contracts create an uneven marketplace where honest competitor companies are put at a disadvantage,” said Assistant Director Vale. “Along with the Department of Justice, international law enforcement partners and other U.S. federal agencies, the FBI is committed to pursuing all those who attempt to advance their businesses through corrupt practices.”
“Today’s announcement would not have been possible without the remarkable work conducted by a group of dedicated investigators, attorneys and international partners who were committed to leaving no stone unturned in this case targeting international corruption,” said Assistant Director Richardson. “This case demonstrates that the FBI will not tolerate American institutions and property being used to launder proceeds of foreign corruption and today’s filing is an important step towards recovering identified funds. This should serve as a warning to other corrupt foreign officials that the United States is not open for their business.”
“Today’s actions are the direct result of our agents following the money and unmasking corruption and greed,” said Chief Fort. “Working with our law enforcement partners, IRS-CI will continue to investigate and unravel these complex financial transactions.”
The government alleges that Aluko, Omokore and others funded a lavish lifestyle for Alison-Madueke. According to the allegations, they conspired to purchase millions of dollars in real estate in and around London for Alison-Madueke and her family members, then renovated and furnished these homes with millions of dollars in furniture, artwork and other luxury items purchased at two Houston-area furniture stores at Alison-Madueke’s direction. In return, the government alleges Alison-Madueke used her influence to direct a subsidiary of the Nigerian National Petroleum Corporation to award Strategic Alliance Agreements (SAAs) to two shell companies created by Aluko and Omokore: Atlantic Energy Drilling Concepts Nigeria Ltd. and Atlantic Energy Brass Development Ltd. (the Atlantic Companies). Under the SAAs, the Atlantic Companies were required to finance the exploration and production operations of eight on-shore oil and gas blocks. In return for financing these operations, the companies expected to receive a portion of the oil and gas produced. However, according to the complaint, the Atlantic Companies provided only a fraction of the agreed upon financing or, in some instances, failed entirely to provide it. The companies also failed to meet other obligations under the SAAs, including the payment of $120 million entry fee. Nevertheless, according to the allegations, the companies were permitted to lift and sell more than $1.5 billion worth of Nigerian crude oil. The government contends the Atlantic Companies then used a series of shell companies and intermediaries to launder a portion of the total proceeds of these arrangements into and through the U.S.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the U.S.
The FBI’s International Corruption Squads in Washington, D.C. and Los Angeles and the IRS-CI are investigating the case. Trial Attorneys Stephen A. Gibbons and Michael W. Khoo of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case. The Criminal Division’s Office of International Affairs is providing substantial assistance.
This case was brought under the Kleptocracy Asset Recovery Initiative. This initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office.
In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the U.S. should contact federal law enforcement or send an email to [email protected] or https://tips.fbi.gov/.\
National Health Care Fraud Takedown Results in Charges Against over 412 Individuals Responsible for $1.3 Billion in Fraud LossesRead the Press Release
Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Tom Price, M.D., announced today the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants across 41 federal districts, including 115 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $1.3 billion in false billings. Of those charged, over 120 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS has initiated suspension actions against 295 providers, including doctors, nurses and pharmacists.
Attorney General Sessions and Secretary Price were joined in the announcement by Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting Director Andrew McCabe of the FBI, Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration (DEA), Inspector General Daniel Levinson of the HHS Office of Inspector General (OIG), Chief Don Fort of IRS Criminal Investigation, Administrator Seema Verma of the Centers for Medicare and Medicaid Services (CMS), and Deputy Director Kelly P. Mayo of the Defense Criminal Investigative Service (DCIS).
Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, and State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, and TRICARE (a health insurance program for members and veterans of the armed forces and their families) for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 91 Americans die every day of an opioid related overdose.
“Too many trusted medical professionals like doctors, nurses, and pharmacists have chosen to violate their oaths and put greed ahead of their patients,” said Attorney General Sessions. “Amazingly, some have made their practices into multimillion dollar criminal enterprises. They seem oblivious to the disastrous consequences of their greed. Their actions not only enrich themselves often at the expense of taxpayers but also feed addictions and cause addictions to start. The consequences are real: emergency rooms, jail cells, futures lost, and graveyards. While today is a historic day, the Department's work is not finished. In fact, it is just beginning. We will continue to find, arrest, prosecute, convict, and incarcerate fraudsters and drug dealers wherever they are.”
“Healthcare fraud is not only a criminal act that costs billions of taxpayer dollars - it is an affront to all Americans who rely on our national healthcare programs for access to critical healthcare services and a violation of trust,” said Secretary Price. “The United States is home to the world’s best medical professionals, but their ability to provide affordable, high-quality care to their patients is jeopardized every time a criminal commits healthcare fraud. That is why this Administration is committed to bringing these criminals to justice, as President Trump demonstrated in his 2017 budget request calling for a new $70 million investment in the Health Care Fraud and Abuse Control Program. The historic results of this year’s national takedown represent significant progress toward protecting the integrity and sustainability of Medicare and Medicaid, which we will continue to build upon in the years to come.”
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid and TRICARE for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
“This week, thanks to the work of dedicated investigators and analysts, we arrested once-trusted doctors, pharmacists and other medical professionals who were corrupted by greed,” said Acting Director McCabe. “The FBI is committed to working with our partners on the front lines of the fight against heath care fraud to stop those who steal from the government and deceive the American public.”
“Health care fraud is a reprehensible crime. It not only represents a theft from taxpayers who fund these vital programs, but impacts the millions of Americans who rely on Medicare and Medicaid,” said Inspector General Levinson. “In the worst fraud cases, greed overpowers care, putting patients’ health at risk. OIG will continue to play a vital leadership role in the Medicare Fraud Strike Force to track down those who abuse important federal health care programs.”
“Our enforcement actions underscore the commitment of the Defense Criminal Investigative Service and our partners to vigorously investigate fraud perpetrated against the DoD's TRICARE Program. We will continue to relentlessly investigate health care fraud, ensure the taxpayers' health care dollars are properly spent, and endeavor to guarantee our service members, military retirees, and their dependents receive the high standard of care they deserve,” advised Deputy Director Mayo.
“Last year, an estimated 59,000 Americans died from a drug overdose, many linked to the misuse of prescription drugs. This is, quite simply, an epidemic,” said Acting Administrator Rosenberg. “There is a great responsibility that goes along with handling controlled prescription drugs, and DEA and its partners remain absolutely committed to fighting the opioid epidemic using all the tools at our disposal.”
“Every defendant in today’s announcement shares one common trait - greed,” said Chief Fort. “The desire for money and material items drove these individuals to perpetrate crimes against our healthcare system and prey upon many of the vulnerable in our society. Thanks to the financial expertise and diligence of IRS-CI special agents, who worked side-by-side with other federal, state and local law enforcement officers to uncover these schemes, these criminals are off the street and will now face the consequences of their actions.”
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
*********
For the Strike Force locations, in the Southern District of Florida, a total of 77 defendants were charged with offenses relating to their participation in various fraud schemes involving over $141 million in false billings for services including home health care, mental health services and pharmacy fraud. In one case, the owner and operator of a purported addiction treatment center and home for recovering addicts and one other individual were charged in a scheme involving the submission of over $58 million in fraudulent medical insurance claims for purported drug treatment services. The allegations include actively recruiting addicted patients to move to South Florida so that the co-conspirators could bill insurance companies for fraudulent treatment and testing, in return for which, the co-conspirators offered kickbacks to patients in the form of gift cards, free airline travel, trips to casinos and strip clubs, and drugs.
In the Eastern District of Michigan, 32 defendants face charges for their alleged roles in fraud, kickback, money laundering and drug diversion schemes involving approximately $218 million in false claims for services that were medically unnecessary or never rendered. In one case, nine defendants, including six physicians, were charged with prescribing medically unnecessary controlled substances, some of which were sold on the street, and billing Medicare for $164 million in facet joint injections, drug testing, and other procedures that were medically unnecessary and/or not provided.
In the Southern District of Texas, 26 individuals were charged in cases involving over $66 million in alleged fraud. Among these defendants are a physician and a clinic owner who were indicted on one count of conspiracy to distribute and dispense controlled substances and three substantive counts of distribution of controlled substances in connection with a purported pain management clinic that is alleged to have been the highest prescribing hydrocodone clinic in Houston, where approximately 60-70 people were seen daily, and were issued medically unnecessary prescriptions for hydrocodone in exchange for approximately $300 cash per visit.
In the Central District of California, 17 defendants were charged for their roles in schemes to defraud Medicare out of approximately $147 million. Two of these defendants were indicted for their alleged involvement in a $41.5 million scheme to defraud Medicare and a private insurer. This was purportedly done by submitting fraudulent claims, and receiving payments for, prescription drugs that were not filled by the pharmacy nor given to patients.
In the Northern District of Illinois, 15 individuals were charged in cases related to six different schemes concerning home health care services and physical therapy fraud, kickbacks, and mail and wire fraud. These schemes involved allegedly over $12.7 million in fraudulent billing. One case allegedly involved $7 million in fraudulent billing to Medicare for home health services that were not necessary nor rendered.
In the Middle District of Florida, 10 individuals were charged with participating in a variety of schemes involving almost $14 million in fraudulent billing. In one case, three defendants were charged in a $4 million scheme to defraud the TRICARE program. In that case, it is alleged that a defendant falsely represented himself to be a retired Lieutenant Commander of the United States Navy Submarine Service. It is alleged that he did so in order to gain the trust and personal identifying information from TRICARE beneficiaries, many of whom were members and veterans of the armed forces, for use in the scheme.
In the Eastern District of New York, ten individuals were charged with participating in a variety of schemes including kickbacks, services not rendered, and money laundering involving over $151 million in fraudulent billings to Medicare and Medicaid. Approximately $100 million of those fraudulent billings were allegedly part of a scheme in which five health care professionals paid illegal kickbacks in exchange for patient referrals to their own clinics.
In the Southern Louisiana Strike Force, operating in the Middle and Eastern Districts of Louisiana as well as the Southern District of Mississippi, seven defendants were charged in connection with health care fraud, wire fraud, and kickback schemes involving more than $207 million in fraudulent billing. One case involved a pharmacist who was charged with submitting and causing the submission of $192 million in false and fraudulent claims to TRICARE and other health care benefit programs for dispensing compounded medications that were not medically necessary and often based on prescriptions induced by illegal kickback payments.
*********
In addition to the Strike Force locations, today’s enforcement actions include cases and investigations brought by an additional 31 U.S. Attorney’s Offices, including the execution of search warrants in investigations conducted by the Eastern District of California and the Northern District of Ohio.
In the Northern and Southern Districts of Alabama, three defendants were charged for their roles in two health care fraud schemes involving pharmacy fraud and drug diversion.
In the Eastern District of Arkansas, 24 defendants were charged for their roles in three drug diversion schemes that were all investigated by the DEA.
In the Northern and Southern Districts of California, four defendants, including a physician, were charged for their roles in a drug diversion scheme and a health care fraud scheme involving kickbacks.
In the District of Connecticut, three defendants were charged in two health care fraud schemes, including a scheme involving two physicians who fraudulently billed Medicaid for services that were not rendered and for the provision of oxycodone with knowledge that the prescriptions were not medically necessary.
In the Northern and Southern Districts of Georgia, three defendants were charged in two health care fraud schemes involving nearly $1.5 million in fraudulent billing.
In the Southern District of Illinois, five defendants were charged in five separate schemes to defraud the Medicaid program.
In the Northern and Southern Districts of Indiana, at least five defendants were charged in various health care fraud schemes related to the unlawful distribution and dispensing of controlled substances, kickbacks, and services not rendered.
In the Southern District of Iowa, five defendants were charged in two schemes involving the distribution of opioids.
In the Western District of Kentucky, 11 defendants were charged with defrauding the Medicaid program. In one case, four defendants, including three medical professionals, were charged with distributing controlled substances and fraudulently billing the Medicaid program.
In the District of Maine, an office manager was charged with embezzling funds from a medical office.
In the Eastern and Western Districts of Missouri, 16 defendants were charged in schemes involving over $16 million in claims, including 10 defendants charged as part of a scheme involving fraudulent lab testing.
In the District of Nebraska, a dentist was charged with defrauding the Medicaid program.
In the District of Nevada, two defendants, including a physician, were charged in a scheme involving false hospice claims.
In the Northern, Southern, and Western Districts of New York, five defendants, including two physicians and two pharmacists, were charged in schemes involving drug diversion and pharmacy fraud.
In the Southern District of Ohio, five defendants, including four physicians, were charged in connection with schemes involving $12 million in claims to the Medicaid program.
In the District of Puerto Rico, 13 defendants, including three physicians and two pharmacists, were charged in four schemes involving drug diversion, Medicaid fraud, and the theft of funds from a health care program.
In the Eastern District of Tennessee, three defendants were charged in a scheme involving fraudulent billings and the distribution of opioids.
In the Eastern, Northern, and Western Districts of Texas, nine defendants were charged in schemes involving over $42 million in fraudulent billing, including a scheme involving false claims for compounded medications.
In the District of Utah, a nurse practitioner was charged in connection with fraudulently obtaining a controlled substance, tampering with a consumer product, and infecting over seven individuals with Hepatitis C.
In the Eastern District of Virginia, a defendant was charged in connection with a scheme involving identify theft and fraudulent billings to the Medicaid program.
In addition, in the states of Arizona, Arkansas, California, Delaware, Illinois, Iowa, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, New York, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Texas, Utah, Vermont, Washington and Wisconsin, 96 defendants have been charged in criminal and civil actions with defrauding the Medicaid program out of over $31 million. These cases were investigated by each state’s respective Medicaid Fraud Control Units. In addition, the Medicaid Fraud Control Units of the states of Alabama, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Nebraska, New York, North Carolina, Ohio, Texas, and Utah participated in the investigation of many of the federal cases discussed above.
The cases announced today are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with Medicare Fraud Strike Force teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices of the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois and the Middle District of Florida; and agents from the FBI, HHS-OIG, Drug Enforcement Administration, DCIS and state Medicaid Fraud Control Units.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent unless and until proven guilty.
Additional documents related to this announcement will shortly be available here: https://www.justice.gov/opa/documents-and-resources-july-13-2017.
This operation also highlights the great work being done by the Department of Justice’s Civil Division. In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2.5 billion in judgements and settlements related to matters alleging health care fraud.
Justice Department Files Sexual Harassment Lawsuit against Owner and Seller of North Carolina HomesRead the Press Release
The Justice Department today announced that it has filed a lawsuit against Robert N. Hatfield, who rents, sells, and finances homes in Wilkes County, North Carolina. The lawsuit alleges that Hatfield sexually harassed actual and prospective female residents and borrowers in violation of the Fair Housing Act and the Equal Credit Opportunity Act.
The complaint, filed in the U.S. District Court for the Western District of North Carolina, alleges that for over ten years Hatfield has committed egregious acts of sexual harassment against multiple women who have lived in or inquired about his homes. According to the complaint, Hatfield operates some of his homes as rental properties, which he manages, and offers and provides financing to purchasers of his other homes. The suit alleges that Hatfield’s conduct has included making unwelcome sexual comments and advances, engaging in unwanted sexual touching and groping, offering tangible housing benefits in exchange for sex acts, and taking or threatening to take adverse housing actions against women who object to his harassment.
“Sexual harassment in housing and lending is unacceptable, and indeed is illegal,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “Every woman has the right to feel safe in her home, and the Justice Department will continue to vigorously enforce the federal civil rights laws to hold accountable those who violate this basic right.”
“The victims in this case merely wanted to rent or buy a home, a place of sanctity and safety,” said U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. “Unfortunately, the process became sordid when Hatfield used the critical need for housing as leverage to make unwanted and aggressive sexual advances. This lawsuit should serve as fair warning that Mr. Hatfield’s actions were not only unlawful, but repugnant to the citizens of Western North Carolina - and this office will work vigorously to protect the women, families and other vulnerable individuals harmed by this type of conduct.”
The lawsuit seeks monetary damages to compensate victims, a civil penalty, and a court order barring further discrimination and requiring additional preventive measures. The complaint is an allegation of unlawful conduct. The allegations must be proven in federal court.
Individuals who believe they may have been victims of housing or lending discrimination by Robert Hatfield or who have information about this matter can contact the Justice Department by phone at 1-800-896-7743, mailbox number 3, or by e-mail at [email protected]. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Executive Office for Immigration Review Swears in Immigration JudgeRead the Press Release
FALLS CHURCH, VA - The Executive Office for Immigration Review (EOIR) today announced the investiture of a new immigration judge. Chief Immigration Judge MaryBeth Keller presided over the investiture during a ceremony held this afternoon at EOIR headquarters in Falls Church, Va.
After a thorough application process, Attorney General Jeff Sessions appointed James M. McCarthy to his new position.
"We welcome Judge McCarthy to the ranks of immigration judges at EOIR," said Acting Director James McHenry. "EOIR is committed to reducing its significant pending caseload, and Judge McCarthy’s presence augments our ability to do that in one of our highest-volume courts."
Biographical information follows.
James M. McCarthy, Immigration Judge, New York City Immigration Court
Attorney General Jeff Sessions appointed James M. McCarthy to begin hearing cases in July 2017. Judge McCarthy earned a Bachelor of Science degree in 1983 from St. John’s University and a Juris Doctor in 1995 from Brooklyn Law School. From 2014 to 2017, he served as a senior attorney for Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS), in New York, N.Y. From 2011 to 2014, he served as a deputy chief counsel for the Office of Chief Counsel, ICE, DHS, also in New York. From 2009 to 2011, he served as a senior attorney for ICE, DHS, in Eloy, Ariz. From 2004 to 2009, he served as an assistant chief counsel for ICE, DHS, in Eloy and Florence, Ariz. From 2000 to 2004, he served as an examining attorney for the Mayoral Commission to Combat Police Corruption, New York City Department of Investigations. From 1995 to 2000, he served as an assistant district attorney, and later as a senior assistant district attorney, at the Kings County District Attorney’s Office, in Brooklyn, N.Y. Judge McCarthy is a member of the New York State Bar.
United States Settles Lawsuit over Electric Cable in Boston HarborRead the Press Release
A lawsuit was settled today involving an electrical cable beneath Boston Harbor that runs across two shipping channels that the government alleged was not placed at the required depth when it was installed in 1990. The settlement will allow the Boston Harbor Deep Draft Navigation Improvement Project to continue and ensure that modifications will come at no cost to the United States or Massport.
NSTAR Electric Company d/b/a Eversource Energy (NSTAR), NSTAR subsidiary Harbor Electric Energy Company (HEEC), and the Massachusetts Water Resources Authority (MWRA) have entered into an agreement to settle a lawsuit filed against them by the United States in connection with a submarine electrical cable that lies beneath Boston Harbor and runs across two federal shipping channels. The government’s complaint alleged that the cable was not installed as deep as required by a permit issued by the New England District of the U.S. Army Corps of Engineers (USACE).
“The settlement will remedy the Clean Water Act and River and Harbors Act permit violations,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The permit violations in connection with the electric cable running under Boston Harbor will be resolved, so that the Deep Draft Project can proceed as scheduled. In addition, the settlement shows the commitment we place on upholding the integrity of U.S. Army Corps of Engineers dredge-and-fill permits, and the work the Corps does to protect our Nation’s waterways and highways of commerce.”
“This settlement will allow the Deep Draft project to proceed as planned,” said William D. Weinreb, Acting United States Attorney for the District of Massachusetts. “The Deep Draft project is necessary to keep the Port of Boston and its shipping facilities competitive with other East Coast ports. The settlement also means there will be no interference with the provision of electricity to the Deer Island Waste Water Treatment Plant, which is critical to keeping Boston Harbor clean. This is a victory for both the local economy and the environment.”
The cable, installed in 1990, extends from an NSTAR electrical substation in South Boston to Deer Island. Its purpose was to provide electricity to power the construction and operation of the Deer Island Waste Water Treatment Plant, which is run by the MWRA. The permit required the cable to be embedded at least 25 feet below the bottom of two shipping channels that it crosses, the Reserved Channel and the Main Ship Channel.
The improper installation of the cable took on urgency in 2014, when Congress authorized the deepening of Boston Harbor, including the channels crossed by the cable. The $310 million project to deepen the shipping channels will provide increased depth between Massachusetts Bay and Conley Container Terminal to accommodate the new generation of larger container ships. The harbor deepening project, known as the Deep Draft project, is being led by the USACE in partnership with Massport, which operates Conley Container Terminal. USACE determined that the existing depth of the cable was likely to interfere with the dredging operations of the Deep Draft project, putting the entire project at risk.
The government’s complaint alleged that the permittees – NSTAR, HEEC, and the MWRA – violated two federal laws under which the permit was issued, the Rivers and Harbors Act of 1899 and the Clean Water Act. Massport intervened in the lawsuit, siding with the United States.
Under the terms of the settlement, HEEC will lay a new electrical cable across Boston Harbor from South Boston to Deer Island – but outside the Reserved Channel and out of the way of the Deep Draft project – by the end of 2019. HEEC will then remove the existing cable. Neither the United States nor Massport will bear any of the cost to install or maintain the new cable or remove the existing cable.
Acting Assistant Attorney General Wood, Acting U.S. Attorney Weinreb, and Colonel Christopher Barron, District Engineer and Commander of the USACE New England District, made the announcement today. The case was handled by Assistant U.S. Attorney Christine Wichers of Weinreb’s Civil Division.
USNCB Attends the First Extraordinary Meeting of Heads of National Central Bureaus in the AmericasRead the Press Release
Welcome reception at the Heads of National Central Bureaus of the Americas in Bogota, Columbia.From July 11th through July 12th, 2017 Acting Director Wayne Salzgaber and Deputy Chief of Staff Joe Ferrigno attended the First Extraordinary Meeting of Heads of National Central Bureaus in the Americas that took place in Bogota, Colombia. The U.S. National Central Bureau, INTERPOL Washington, sponsored the meeting. The Colombian National Police Criminal Investigation Directorate and INTERPOL at the "General Francisco de Paula Santander" School of Police Training Academy of the National Police of Colombia served as the hosts for this first ever meeting.
Department of Justice Statement on the Closing of Its Investigation into the Possible Acquisition of Chicago Sun-Times by Owner of Chicago TribuneRead the Press Release
The Department of Justice’s Antitrust Division issued the following statement today after announcing the closing of its investigation into the possible acquisition of the Chicago Sun-Times by tronc Inc., the owner of the Chicago Tribune:
On May 15, 2017, the Antitrust Division announced that it was investigating the possible acquisition of the Chicago Sun-Times by tronc because the merger of the two daily newspapers in Chicago would raise significant antitrust concerns.
The Division’s investigation focused on whether the Chicago Sun-Times was a failing company under the Department of Justice/Federal Trade Commission Horizontal Merger Guidelines, which provide that a transaction is not likely to be anticompetitive if the assets of one of the firms would otherwise exit the market. One of the conditions required to be met in order to establish the “failing firm” defense is that the failing firm “has made unsuccessful good-faith efforts to elicit reasonable alternative offers that would keep its tangible and intangible assets in the relevant market and pose a less severe danger to competition than does the proposed merger.” Horizontal Merger Guidelines at § 11. Because this condition may not be satisfied by a confidential sale effort, a seller may choose to undertake a public sale process to augment its effort to elicit reasonable alternative offers.
In this case, Wrapports LLC, the owner of the Chicago Sun-Times, launched a public sale process on May 16, 2017, which the Division monitored closely. This process resulted in Wrapports selling the Chicago Sun-Times to an alternative buyer, ST Acquisition Holdings LLC, which does not currently own an interest in any other newspaper. As a result, the Division will be closing its investigation of the possible acquisition of the Chicago Sun-Times by tronc.
The Division notes that some transactions that rely on a failing firm defense may not be reportable under the Hart-Scott-Rodino Act. Division encourages firms whose non-reportable transaction relies on a failing firm defense to: (i) inform the Division about the proposed transaction prior to consummation; (ii) allow for sufficient time for the Division to conduct a thorough investigation, which may decrease the possibility of a precipitous enforcement action; and (iii) plan in advance for the costs of undergoing such an investigation. At the same time, when voluntarily notified of such a transaction, the Division endeavors to conduct its investigation expeditiously under the circumstances. Here, Wrapports helpfully notified the Division of the Letter of Intent that it had entered into with tronc, which enabled the Division to open its investigation and monitor the public sale process.
The Antitrust Division is the agency responsible for investigating mergers involving newspapers.
Tronc is a Delaware corporation headquartered in Chicago. It publishes major daily newspapers across California, Illinois, Florida, Maryland, Connecticut, Virginia and Pennsylvania. Wrapports is a privately-held Delaware limited liability company based in Chicago. ST Acquisition Holdings is a privately-held Delaware limited liability company based in Chicago.
The Antitrust Division’s Closing Statement Policy
The Division provides this statement under its policy of issuing statements concerning the closing of investigations in appropriate cases. This statement is limited by the Division’s obligation to protect the confidentiality of certain information obtained in its investigations. As in most of its investigations, the Division’s evaluation has been highly fact-specific, and many of the relevant underlying facts are not public. Consequently, readers should not draw overly broad conclusions regarding how the Division is likely in the future to analyze other collaborations or activities, or transactions involving particular firms. Enforcement decisions are made on a case-by-case basis, and the analysis and conclusions discussed in this statement do not bind the Division in any future enforcement actions. Guidance on the division's policy regarding closing statements is available at www.justice.gov/atr/public/closing/index.html.
Attorney General Jeff Sessions Applauds House of Representatives for Anti-Human Trafficking LegislationRead the Press Release
Today Attorney General Jeff Sessions issued the following statement applauding the House of Representatives for passing three significant Anti-Human Trafficking bills:
“There is simply no way to overstate the horrific nature of enticement, kidnapping, and human trafficking. It is an absolute priority of President Trump and the Department of Justice to make those that seek to profit off the exploitation of others feel the weight of swift and certain justice. I am therefore extremely encouraged by the actions of Congress today in passing legislation aimed at stopping this scourge and commend all those that supported these bills.”
BACKGROUND
The Frederick Douglass Trafficking Victims Prevention and Protection Act
The Enhancing Detection of Human Trafficking Act
The Empowering Law Enforcement to Fight Sex Trafficking Demand Act
Twelve Alleged Baltimore TTG Members and Associates Indicted on Federal Racketeering and Drug Conspiracy ChargesRead the Press Release
A federal grand jury has returned a superseding indictment charging 10 defendants with conspiring to participate in a violent racketeering enterprise known as Trained To Go (TTG). The superseding indictment, which was returned on June 30, 2017 and unsealed today, charges 10 alleged TTG gang members and TTG associates with conspiring to violate federal racketeering and drug trafficking laws. Four defendants are also charged with committing murder in aid of racketeering. Twelve defendants, including all 10 defendants charged in the RICO count, are also charged with conspiracy to distribute and possession with intent to distribute heroin, cocaine, and marijuana. Four defendants are charged with distribution and possession with intent to distribute heroin; two are charged with possession of a firearm in furtherance of a drug trafficking crime and with possession of a firearm by a felon.
The indictment was announced by Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.
According to the ten-count indictment, the defendants are members of Trained To Go (TTG), a criminal organization whose members engaged in drug distribution and acts of violence involving murder, kidnapping, assault, robbery, and witness intimidation. TTG operated in the Sandtown neighborhood of West Baltimore. Members and associates of TTG sold narcotics, including heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. The murders, assaults, and kidnappings included that of rival gang members, rival drug dealers, and individuals cooperating with law enforcement, as well as engaging in murder-for-hire schemes. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which included five Baltimore City Police Officers.
The following defendants, all of Baltimore, are charged in the indictment unsealed today:
Montana Barronette, a/k/a Tana, and Tanner, age 22;
Terrell Sivells, a/k/a Rell, age 26;
John Harrison, a/k/a Binkie, age 27;
Taurus Tillman, a/k/a Tash, age 28;
Linton Broughton, a/k/a Marty, age 24;
Dennis Pulley, a/k/a Denmo, age 30;
Roger Taylor, a/k/a Milk, age 26;
Brandon Wilson, a/k/a Ali, age 23;
Brandon Bazemore, a/k/a Man Man, age 24;
Timothy Floyd, a/k/a Tim Rod, age 27
Hisaun Chatman, age 31; and
James Woodfolk, age 20.
The indictment alleges that between May 20, 2010 and May 25, 2016, the defendants committed acts of violence, including 10 murders, and one non-fatal shooting. The violent acts were intended to further the gang’s activities, including intimidating witnesses to prevent them from cooperating with law enforcement, protecting the gang’s drug territory, and for the purpose of maintaining and increasing their position within the organization.
Ten defendants have been detained, one defendant is under supervision with pretrial services and the whereabouts of Roger Taylor are unknown.
Anyone who may have information on the whereabouts of Roger Taylor is asked to contact the FBI- Baltimore Field office at (410) 265-8080.
FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area. The squad utilizes drug and violent crime investigations to address gang violence and the associated homicides in Baltimore, MD. The vision of the program is to use the Enterprise Theory of Investigation (ETI), through criminal and civil provisions of RICO Act and in accordance with the FBI and Department of justice national strategies, to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities. The FBI Baltimore Violent Crimes Gangs Task Force includes FBI special agents and task force officers from the Baltimore, Baltimore County and Anne Arundel County Police Departments.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The case was investigated by the FBI, Baltimore City Police Department, and the ATF. The prosecution was handled by Assistant U.S. Attorneys Matt Sullivan, Christopher J. Romano and Daniel Gardener, and Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section.
Seventh Company Agrees to Plead Guilty for Fixing Prices of Electrolytic CapacitorsRead the Press Release
Nichicon Corporation will plead guilty for its role in a conspiracy to fix prices for electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today.
According to the one-count felony charge filed today in the U.S. District Court for the Northern District of California, Nichicon conspired with others to suppress and eliminate competition for electrolytic capacitors from as early as November 2001 until December 2011. In addition to pleading guilty, Nichicon has agreed to pay a $42 million criminal fine and cooperate with the Antitrust Division’s ongoing investigation. The plea agreement is subject to court approval.
“Including today’s charge, the Antitrust Division has now charged seven companies and ten individuals for participating in a long-running conspiracy to fix the price of a critical component in electronic devices used by millions of American consumers,” said Director of Criminal Enforcement Marvin Price of the Justice Department’s Antitrust Division. “But our investigation is not over. We are continuing to pursue the companies and executives who conspired to undermine competition in this vital industry.”
Electrolytic capacitors store and regulate electrical current in a variety of electronic products, including computers, televisions, car engines and airbag systems, home appliances and office equipment.
Today’s charge results from ongoing federal antitrust investigations being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office into price fixing, bid rigging and other anticompetitive conduct in the capacitor industry. Anyone with information related to the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit https://www.justice.gov/atr/report-violations, or call the FBI tip line at 415-553-7400.
Mallinckrodt Agrees to Pay Record $35 Million Settlement for Failure to Report Suspicious Orders of Pharmaceutical Drugs and for Recordkeeping ViolationsRead the Press Release
Mallinckrodt LLC, a pharmaceutical manufacturer and one of the largest manufacturers of generic oxycodone, agreed to pay $35 million to settle allegations that it violated certain provisions of the Controlled Substances Act (CSA) that are subject to civil penalties, Attorney General Jeff Sessions of the Justice Department and Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration (DEA) announced today.
This is the first settlement of its magnitude with a manufacturer of pharmaceuticals resolving nationwide claims that the company did not meet its obligations to detect and notify DEA of suspicious orders of controlled substances such as oxycodone, the abuse of which is part of the current opioid epidemic. These suspicious order monitoring requirements exist to prevent excessive sales of controlled substances, like oxycodone in Florida and elsewhere. The settlement also addressed violations in the company’s manufacturing batch records at its plant in Hobart, New York. Both sets of alleged violations impact accountability for controlled substances, and the compliance terms going forward are designed to help protect against diversion of these substances at critical links in the controlled substance supply chain.
“In the midst of one of the worst drug abuse crises in American history, the Department of Justice has the responsibility to ensure that our drug laws are being enforced and to protect the American people,” said Attorney General Sessions. “Part of that mission is holding drug manufacturers accountable for their actions. Mallinckrodt’s actions and omissions formed a link in the chain of supply that resulted in millions of oxycodone pills being sold on the street. Thanks to the hard work of our attorneys and law enforcement, Mallinckrodt has agreed to do everything they can to help us identify suspicious orders in the future. And as a result of today's settlement, we are sending a clear message to drug companies: this Department of Justice will hold you accountable for your legal obligations and we will enforce our laws. I believe that will prevent drug abuse, prevent new addictions from starting, and ultimately save lives.”
“Manufacturers and distributors have a crucial responsibility to ensure that controlled substances do not get into the wrong hands,” said DEA Acting Administrator Chuck Rosenberg. “When they violate their legal obligations, we will hold them accountable.”
The government alleged that Mallinckrodt failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances – orders that are unusual in their frequency, size, or other patterns. From 2008 until 2011, the U.S. alleged, Mallinckrodt supplied distributors, and the distributors then supplied various U.S. pharmacies and pain clinics, an increasingly excessive quantity of oxycodone pills without notifying DEA of these suspicious orders. Through its investigation, the government learned that manufacturers of pharmaceuticals offer discounts, known as “chargebacks,” based on sales to certain downstream customers. Distributors provide information on the downstream customer purchases to obtain the discount. The groundbreaking nature of the settlement involves requiring a manufacturer to utilize chargeback and similar data to monitor and report to DEA suspicious sales of its oxycodone at the next level in the supply chain, typically sales from distributors to independent and small chain pharmacy and pain clinic customers.
The government also alleged that Mallinckrodt violated record keeping requirements at its manufacturing facility in upstate New York. Among other things, these violations created discrepancies between the actual number of tablets manufactured in a batch and the number of tablets Mallinckrodt reported on its records. Accurate reconciliation of records at the manufacturing stage is a critical first step in ensuring that controlled substances are accounted for properly through the supply chain.
In addition to the significant monetary penalty, this settlement includes a groundbreaking parallel agreement with the DEA, as a result of which the company will analyze data it collects on orders from customers down the supply chain to identify suspicious sales. The resolution advances the DEA’s position that controlled substance manufacturers need to go beyond “know your customer” to use otherwise available company data to “know your customer’s customer” to protect these potentially dangerous pharmaceuticals from getting into the wrong hands. DEA’s Memorandum of Agreement with Mallinckrodt also sets forth specific procedures it will undertake to ensure the accuracy of batch records and protect loss of raw product in the manufacturing process.
By entering into these agreements, elements of which Mallinckrodt is already implementing, the company is becoming part of the solution to this public health epidemic.
This lengthy investigation was led by DEA’s Detroit Field Division on the suspicious order issues and the New York Field Division on the manufacturing record keeping issues.
U.S. Attorneys’ Offices for the Eastern District of Michigan and the Northern District of New York, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating the settlement.
INTERPOL Washington Participates in International Border SummitRead the Press Release
INTERPOL Washington—the U.S. National Central Bureau--participated in a panel discussion on border security during the International Summit on Borders held in Washington, D.C., on June 13-14, 2017.
The International Summit on Borders, sponsored by Clarion Events, brought together U.S. and international leaders from government and the private sector to explore the nexus between international trade and travel with homeland security and other transnational threats. Secretary of Homeland Security John F. Kelly opened the event with a keynote presentation entitled, “Global Border Issues: How Cooperation Can and Is Enhancing Security and Facilitation.”
Royce Walters, INTERPOL Washington Assistant Director for Counter-terrorism and Border Security, made brief remarks describing the role of INTERPOL and INTERPOL Washington, as well as the need for cooperation between the border security elements of individual countries to take advantage of the available tools.
INTERPOL offers all INTERPOL member countries, either individually or simultaneously, access to an encrypted, Internet-based virtual private network known as I-24/7. This system facilitates police-to-police interaction in real time on investigative matters ranging from simple criminal history checks to the sharing of vital criminal intelligence and investigative leads. It also provides an international communications link for processing humanitarian assistance requests involving threatened suicides, death notifications, and health and welfare checks.
Through INTERPOL Washington’s integrated information-sharing strategy, all U.S. law enforcement, border protection and consular officials have the ability to access the international criminal databases maintained by INTERPOL. These databases include information on wanted and missing persons, terrorists, stolen and lost travel documents, and stolen vehicles, among other data.
Walters emphasized the importance of increasing and enhancing individual countries’ access to I-24/7. He suggested that border security networks can be strengthened when countries collect data for, contribute data to, and capitalize on the data available through INTERPOL’s networks. Biometric and stolen and lost travel documents (SLTD) data are critical to effective border security efforts to stop transnational criminals and foreign terrorist fighters. “We know of instances in which the ability to scan travel documents at a country’s border could have enabled a timely arrest of an international criminal. This is why it is critical to make these data available to police and border security officials worldwide,” he said.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Photograph courtesy of Customs and Border Protection. A Customs and Border Protection officer checks a passenger’s documentation after arrival into the United States.Four More Members of ATM Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Plead GuiltyRead the Press Release
Four members of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty today in Newark federal court.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; and Acting Special Agent in Charge Brian A. Michael of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Newark Division made the announcement.
Marcel Peckham, 43, of Little Neck, New York; Catalin Mihai Dragomir, 33, of Glendale, New York; Eduard Vasilica Ticu, 32, of Glendale; and Silvester Florentin Papp, 25, of Ridgewood, New York, pleaded guilty before U.S. District Judge Esther Salas to separate informations charging them each with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Peckham, Dragomir, Ticu, Papp, and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Peckham admitted providing counterfeit ATM cards to other conspirators, knowing that they were going to use them to withdraw cash from compromised bank accounts at ATMs in New Jersey. Dragomir, Ticu, and Papp each admitted that between March 2015 and July 2016, they made unauthorized cash withdrawals using the counterfeit ATM cards.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing for all four defendents is set for Oct. 23, 2017.
Joel Abel Garcia, Victor A. Hanganu, and Radu Bogdan Marin also pleaded guilty to their roles in the scheme and await sentencing. To date, seven of the 13 defendants charged in this matter have been convicted.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s Newark, New Jersey, Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.
The prosecution is being handled by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
Federal Jury Returns Sentence of Life Imprisonment for Murder of a Federal Correctional OfficerRead the Press Release
A federal jury in Scranton returned a verdict yesterday of life in prison for Jessie Con-Ui, 40, a federal inmate, for the first-degree murder of U.S. Correctional Officer Eric Williams. Senior U.S. District Court Judge A. Richard Caputo scheduled the formal imposition of the life sentence for October 12.
Attorney General Jeff Sessions of the Justice Department; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and U.S. Attorney Bruce D. Brandler for the Middle District of Pennsylvania made the announcement.
On June 7, 2017, the same jury convicted Con-Ui of “willfully, deliberately, maliciously, and with premeditation and malice aforethought” killing Officer Williams while he was engaged in the performance of his duties at the Canaan Federal Correctional Complex, U.S. Penitentiary, in Waymart, Pennsylvania, on Feb. 25, 2013.
The evidence at trial established that Con-Ui, armed with two sharpened weapons (commonly known as “shanks”), positioned himself at the top of a metal stairway as Correctional Officer Williams ascended the stairway leading to the second floor of a housing unit within the prison. Con-Ui kicked Correctional Officer Williams down the stairs and then stabbed him over 200 times with the weapons. Con-Ui also repeatedly kicked and stomped on Correctional Officer Williams, causing massive fatal injuries.
At the time of the murder, Con-Ui was serving an 11-year federal sentence for conspiracy to possess with intent to distribute more than 5 kilograms of cocaine, imposed by the United States District Court for the District of Arizona in 2005. Con-Ui was also serving a concurrent life sentence for first-degree murder imposed by the Maricopa County Superior Court, Phoenix, Arizona, in 2008 for the 2002 murder of Carlos Garcia in Phoenix, Arizona.
“I extend my sincere condolences to Officer Williams’s family, colleagues, and friends. The murder of a dedicated public servant in the line of duty, under such heinous circumstances, strikes at the core and soul of our nation,” said Acting Assistant Attorney General Blanco. “We hope and pray that Officer Williams’s family will find some closure with the conclusion of these proceedings, and knowing that his dedicated service will always be remembered by a grateful nation.”
“We are extremely disappointed with the jury’s verdict, but I want to highlight the outstanding work of all the men and women who worked on this case for over four years,” said U.S. Attorney Brandler. “The Phoenix, Arizona Division of the Federal Bureau of Investigation; the Phoenix Police Department; the Phoenix Department of Corrections; the Phoenix Juvenile Justice Office; the Federal Bureau of Investigation Laboratory in Quantico, Virginia; the Scranton, Pennsylvania Division of the Federal Bureau of Investigation; the Federal Bureau of Prisons; the U.S. Attorney’s Office Victim-Witness Unit and legal support staff; and Assistant United States Attorneys Fran P. Sempa and Robert J. O’Hara and Department of Justice Capital Case Section Trial Attorney Robert J. Feitel, all performed their roles in exemplary fashion and deserve our appreciation for their tireless efforts in the prosecution of this case.”
“A correctional officer has one of the most dangerous jobs in law enforcement. Eric Williams was performing that job at USP Canaan, when was he blindsided and brutalized by Jessie Con-Ui,” said Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “The heinous violence inflicted upon Correctional Officer Williams cost a dedicated federal officer his life. At the Philadelphia FBI, our hearts go out to the Williams family and all who knew and loved Eric.”
At the time of his death, Officer Williams was 34 years old, and a resident of Wapwallopen, Pennsylvania.
The charges against Con-Ui resulted from an investigation by the FBI, with assistance from the Federal Bureau of Prisons. The case is being prosecuted by the Criminal Division’s Capital Case Section and the U.S. Attorney’s Office for the Middle District of Pennsylvania.
Document Broker Sentenced to 27 Months for Role in Trafficking Identities of Puerto Rican U.S. CitizensRead the Press Release
A document broker was sentenced today in connection with his role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney William D. Weinreb of the District of Massachusetts, Acting Director Thomas D. Homan of the U.S. Immigration and Customs Enforcement (ICE) and Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS) made the announcement.
Sandro Tavera Mora, aka Jose Laureano Ayala, 46, a Dominican citizen residing in Springfield, Massachusetts, was sentenced today to 27 months in prison. On May 4, 2017, Tavera Mora pleaded guilty before U.S. District Court Judge Mark G. Mastroianni of the District of Massachusetts, to false personation of U.S. citizenship, fraud and misuse of visas and conspiracy to possess and transfer identification documents. Tavera Mora was charged in a superseding indictment returned by a federal grand jury in Springfield on July 23, 2015.
According to admissions made in connection with the plea, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the U.S., identified as identity document suppliers and brokers, solicited customers and sold social security cards and corresponding Puerto Rico birth certificates for prices ranging from $400 to $1,200 per set.
As part of his plea, Tavera Mora admitted that he operated as a document broker in Springfield, Massachusetts, buying, possessing, transferring and selling personal identifying information contained in legitimate government documents belonging to residents of Puerto Rico. Tavera Mora further admitted that the customers who purchased these documents were undocumented aliens who would use this information to assume the identities of U.S. citizens in order to apply for other identity documents. Tavera Mora also admitted that he knew that these customers would use these documents to violate federal law, including social security fraud and the impersonation of a U.S. citizen.
Additionally, Tavera Mora admitted that upon his arrest he identified himself as “Lareano Ayala,” stated he was born in Puerto Rico and possessed a fraudulent Puerto Rico Driver’s License and a U.S. social security card in the same name. Tavera Mora further admitted that he possessed a fraudulent Dominican Republic passport that contained a non-immigration U.S. Visa with fraudulent admittance record and a Customs and Border Patrol admittance stamp.
The Chicago offices of ICE-Homeland Security Investigations (HSI), USPIS, U.S. Department of State Bureau of Diplomatic Security, and IRS-Criminal Investigations led the investigation, dubbed Operation Island Express II, with assistance from HSI Springfield, Massachusetts, and USPIS in Hartford, Connecticut. The ICE-HSI Attaché office in the Dominican Republic, International Organized Crime Intelligence and Operations Center (IOC-2) and Illinois Secretary of State Police provided invaluable assistance, as well as various ICE, USPIS, DSS and IRS-CI offices around the country.
Trial Attorney Marianne Shelvey of the Justice Department Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kevin O’Regan of the District of Massachusetts are prosecuting the case.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline. Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.
Justice Department Settles Sexual Harassment Lawsuit Against Morgantown, West Virginia, LandlordsRead the Press Release
The Justice Department today announced a settlement with the owners and former managers of more than 70 residential rental properties in the Morgantown, West Virginia area to resolve allegations that Gary Walden, while serving as the manager of these properties, sexually harassed female tenants and prospective tenants, in violation of the Fair Housing Act. Under the settlement, which was approved today by the U.S. District Court for the Northern District of West Virginia, the defendants have agreed to pay a total of $600,000 in monetary damages and civil penalties, and Walden intends to transfer his ownership of these properties and to relinquish his role in managing them.
“It is unacceptable that a woman should have to endure sexual harassment by her landlord in her own home,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “This settlement sends a strong message that the Civil Rights Division will aggressively pursue those who engage in this egregious conduct.”
“This type of conduct can never be tolerated in the Northern District of West Virginia or elsewhere,” said Acting United States Attorney Betsy Steinfeld Jividen of the Northern District of West Virginia. “And while the monetary settlement will not erase the unthinkable violations outlined in this case, it will put all on notice that those who choose to violate anyone’s civil rights will face consequences.”
The settlement requires the defendants to pay $500,000 to persons harmed by the discriminatory conduct and $100,000 to the United States in civil penalties. Walden will be enjoined from engaging in any property management, rental management, or maintenance responsibilities at the rental properties, and from entering the premises or having any contact with current or former tenants of the rental properties, including any individuals determined to be aggrieved persons.
Individuals who believe they were subjected to sexual harassment by Walden should contact the Justice Department (“the department”) at 1-800-896-7743, mailbox 97, or by e-mail at [email protected].
The lawsuit arose when four female tenants filed complaints about Walden with the Department of Housing and Urban Development (“HUD”), which referred the complaints to the department. After conducting an investigation, the department filed this lawsuit in March 2016, alleging that Walden sexually harassed multiple female residents and prospective residents from at least July 2006 through July 2015. According to the department’s complaint, Walden engaged in unwanted and unwelcome sex acts with female tenants, including touching and groping their breasts and genitals; conditioned tangible housing benefits to female tenants in exchange for performance of sex acts; made unwanted and unwelcome sexual comments and verbal sexual advances; entered the homes of female tenants without permission or notice to sexually harass them; and took or threatened to take adverse action against female tenants when they refused or objected to his sexual advances.
The department’s lawsuit names Walden, the estate of his late wife, Tina Walden, and business entities associated with the Waldens’ property ownership and management business, including Walden Homes, LLC, d/b/a Walden Rentals, and 973 Chestnut Ridge Road, Inc. In April 2015, Gary Walden pled guilty to sexual abuse and other charges in the Circuit Court of Monongalia County, West Virginia, and was incarcerated for those offenses from July 2015 to March 2017 in a state prison. In 2006, the West Virginia Attorney General’s Office filed a housing discrimination lawsuit in state court against Walden alleging sexual harassment, which was settled in 2008.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Individuals who believe that they may have been victims of housing discrimination elsewhere should call the department at 1-800-896-7743, or send an e-mail to [email protected], or contact HUD at 1-800-669-9777.
Vincent John Quitugua Sentenced to Prison in Ice Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant VINCENT JOHN QUITUGUA, age 47, from Piti, was sentenced on July 6, 2017, in District Court to a 57-month concurrent term of imprisonment for possession of a controlled substance (methamphetamine) with intent to distribute, and maintaining a drug-involved premises. The Court also ordered QUITUGUA to pay a mandatory $200 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On July 6, 2106, QUITUGUA entered a guilty plea to both crimes. The investigation revealed that QUITUGUA, a public school teacher, was selling methamphetamine and conducting an extensive marijuana grow operation from his Piti, Guam residences. QUITUGUA was discovered with over ten grams of methamphetamine with a purity level of 99%, approximately 121 living marijuana plants, 429 grams of processed marijuana, four firearms, $72,922.50 in U.S. currency as well as four scales, glass pipes and paraphernalia.
The District Court noted that QUITUGUA is a public school teacher with over 20 years of experience in Guam’s middle school. Court expressed concern that QUITUGUA had four firearms in close proximity to the drugs, and noted that the sales of methamphetamine and the marijuana grow occurred in close proximity to a middle school. Court ordered that the currency, firearms and ammunition be forfeited to the U.S. government.
The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. The case was prosecuted by Rosetta San Nicolas, an Assistant United States Attorney for the District of Guam.
Two More Defendants Plead Guilty in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
An Arizona man and an Illinois woman each pleaded guilty to conspiracy charges today for their respective roles in liquidating and laundering victim payments generated through a massive telephone impersonation fraud and money laundering scheme perpetrated by India-based call centers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.
Bhavesh Patel, 47, most recently residing in Gilbert, Arizona, pleaded guilty to money laundering conspiracy, in violation of Title 18, U.S. Code, Section 1956(h). Asmitaben Patel, 34, most recently residing in Willowbrook, Illinois, pleaded guilty to a conspiracy to commit fraud and money laundering offenses, in violation of Title 18, U.S. Code, Section 371. The pleas were entered before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing dates are pending.
According to admissions made in connection with their respective pleas, Bhavesh Patel, Asmitaben Patel, and their co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams, in a ruse designed to defraud victims located throughout the U.S. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to Bhavesh Patel’s guilty plea, beginning in or around January 2014, Bhavesh Patel managed the activities of a crew of runners, directing them to liquidate victim scam funds in areas in and around south and central Arizona per the instructions of conspirators from India-based call centers. Patel communicated via telephone about the liquidation of scam funds with both domestic and India-based co-defendants, and he and his crew used reloadable cards containing funds derived from victims by scam callers to purchase money orders and deposit them into various bank accounts as directed, in return for percentage-based commissions from his India-based co-defendants. Patel also admitted to receiving and using fake identification documents, including phony driver’s licenses, to retrieve victim scam payments in the form of wire transfers, and providing those fake documents to persons he managed for the same purpose.
Based on admissions in Asmitaben Patel’s guilty plea, beginning in or around July 2013, Asmitaben Patel served as a runner liquidating victim scam funds as part of a group of conspirators operating in and around the Chicago area. At the direction of a co-defendant, Patel used stored value cards that had been loaded with victim funds to buy money orders and deposit them into various bank accounts, including the account of a lead generating business in order to pay the company for leads it provided to co-conspirators that were ultimately used to facilitate the scam.
To date, Bhavesh Patel, Asmitaben Patel, 54 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Including today’s pleas, a total of eleven defendants have pleaded guilty thus far in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari, Harsh Patel, Nilam Parikh, Hardik Patel, Rajubhai Patel, Viraj Patel, Dilipkumar A. Patel, and Fahad Ali previously pleaded guilty on various dates between April and June 2017.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in the Middle District of Alabama, Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Former Tucson Police Officer Sentenced to 78 Months for the Illegal Sales of FirearmsRead the Press Release
TUCSON, Ariz. – Yesterday, Joe Santiago Valles, 34, of Tucson, Ariz., was sentenced by U.S. District Judge James A. Soto to 78 months in prison. Valles had previously pleaded guilty to conspiracy to defraud the United States, aiding and abetting false statements in firearms transactions, tampering, tampering with a witness, and identity theft.
Beginning in October 2015 through April 20, 2016, Joe Valles was a business partner with a Federal Firearms Licensee (FFL) in Tucson, Ariz. The FFL and Valles used the identities of individuals, who were not purchasing firearms, to submit ATF Forms 4473 claiming they were the purchasers. ATF Form 4473 is required to legally purchase or acquire firearms from FFLs. The FFL and Valles used the fraudulent forms to conceal the identities of the true buyers. The conspiracy involved a total of 35 firearm transactions, including 24 semi-automatic pistols and rifles. Valles was working as a Tucson Police officer when he stole the identities of two individuals he had contact with through his official duties. Twenty-nine firearm transactions listed these two individuals as buyers when, in fact, they were not the purchasers. To date, one of the firearms was intercepted at the Nogales Port of Entry and a second firearm, a .50 caliber semi-automatic rifle, was seized by Mexican authorities.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance by Customs and Border Protection. The prosecution was handled by Serra M. Tsethlikai and Karen E. Rolley, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-16-01059-TUC-JAS
RELEASE NUMBER: 2017-058_Valles
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Justice Department Resolves Allegations of Housing Discrimination Involving North Attleboro Apartment ComplexRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with J & R Associates, the owner and operator of the Royal Park Apartments, a 224-unit multi-family housing complex in North Attleboro, Massachusetts. The settlement resolves allegations that J & R Associates discriminated against tenants of South Asian descent in violation of the Fair Housing Act, which prohibits housing discrimination on the basis of race and national origin.
Based on its investigation, the Department determined that J & R Associates discriminated against persons of South Asian descent in the renting of units at Royal Park Apartments by steering them to certain buildings in the eight-building complex over a period of at least five years, from at least 2009 through 2014. J & R Associates cooperated fully with the Department’s investigation, which revealed that the discriminatory conduct had ceased by about 2015. Under the terms of the agreement, J & R Associates will establish a settlement fund in the amount of $70,000 to compensate victims of the discriminatory practices. J & R Associates also has agreed to train any new employees and to abide by the Fair Housing Act going forward.
In a related matter resolved in 2015, J & R Associates agreed to make changes to its rental practices to resolve allegations that it had been steering families with children to certain buildings and units in violation of the Fair Housing Act. In compliance with the court-approved settlement in that case, United States v. J & R Associates, Civil Action No. 15-11748 (D. Mass.), which remains in effect today, J & R Associates has reformed its practices and trained its employees in order to provide housing opportunities to prospective tenants equally and without regard to their race or national origin, or to whether they have children.
“Housing discrimination on the basis of race and national origin is not acceptable and will not be tolerated,” said Acting Assistant Attorney General Tom Wheeler, of the Justice Department’s Civil Rights Division. “We appreciate J & R Associates’ cooperation with our investigation and agreement to remedy past discriminatory practices.”
“Ensuring fair housing decreases inequality and increases educational and economic opportunities,” said William D. Weinreb, Acting United States Attorney for the District of Massachusetts. “This office will continue to enforce civil rights and fight discrimination in Massachusetts.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
Justice Department Reaches Settlement with Michigan Credit Union for Illegally Repossessing Servicemembers’ CarsRead the Press Release
The Justice Department announced today that COPOCO Community Credit Union, based in Bay City, Michigan, has agreed to a settlement to resolve allegations that it illegally repossessed four servicemembers’ vehicles. The department’s lawsuit, filed July 26, 2016, alleged that COPOCO violated the Servicemembers Civil Relief Act (SCRA) by repossessing cars owned by protected servicemembers without first obtaining the required court orders. Under the agreement, COPOCO must change its policies and compensate four servicemembers whose cars COPOCO unlawfully repossessed.
The department launched an investigation after it received a complaint in October 2015 from Alyssa Carriveau, the wife of U.S. Army Private First Class Christian Carriveau, alleging that COPOCO had repossessed their car, along with their two-year-old daughter’s car seat, out of their driveway in Lacey, Washington, near Joint Base Lewis-McChord. Alyssa Carriveau initially believed that the car had been stolen, but she subsequently learned that it had been repossessed. Private First Class Carriveau was away at military training at the time and Alyssa Carriveau was not able to get to work without the vehicle. The department’s subsequent investigation corroborated the Carriveaus’ complaint and revealed that COPOCO had no policies related to compliance with the SCRA. After filing the lawsuit, the United States learned of three additional repossessions COPOCO conducted that violated the SCRA.
“This sends a message to financial institutions, large and small, that they must live up to their obligations to our servicemembers,” said Acting Assistant Attorney General Thomas Wheeler. “They cannot use ignorance of the law as an excuse and must instead actively ensure that they comply with the law. The Justice Department is committed to vigorously protecting the rights of the men and women who bravely serve our country.”
“The U.S. Attorney’s Office in the Eastern District of Michigan is committed to safeguarding the financial and legal rights of our servicemembers and their families,” said Acting United States Attorney Daniel L. Lemisch. “Of the many sacrifices made by our military members while they are in service to our country, losing their cars to repossession should never be one of them.”
The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, COPOCO prevented servicemembers from obtaining a court’s review of whether their repossessions should be delayed or adjusted to account for their military service.
The agreement requires COPOCO to provide $10,000 in compensation to each of the affected servicemembers, plus any lost equity in the vehicle with interest. The Carriveaus, who had their car returned to them the day after the repossession at the department’s request, will receive $7,500. COPOCO also must repair the credit of all affected servicemembers, pay a $5,000 civil penalty to the United States and determine, in the future, whether any vehicle it is planning to repossess is owned by an active duty servicemember. If so, COPOCO will not repossess the vehicle without first obtaining a court order or valid waiver of SCRA rights. The agreement also contains provisions ensuring that all eligible servicemembers will receive the benefit of the SCRA’s six percent interest rate cap on their auto loans.
The department’s enforcement of the SCRA and other fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2011, the division has provided over $450 million in monetary relief to over 117,000 servicemembers through its enforcement of the SCRA. The SCRA provides protections for active duty servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/content/locator.php.