District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Justice Department Requires Divestiture of Certain Herbicides, Insecticides, and Plastics Businesses in Order to Proceed with Dow-Dupont MergerRead the Press Release
The Department of Justice announced today that it will require The Dow Chemical Company (Dow) and E.I. DuPont de Nemours & Co. (DuPont) to divest multiple crop protection and two petrochemical products to proceed with their proposed merger valued at about $130 billion.
The Justice Department’s Antitrust Division, along with the offices of three state attorneys general, filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to enjoin the proposed transaction, along with a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns. The participating state attorneys general offices represent Iowa, Mississippi, and Montana.
The department said that, without the divestitures, the proposed merger likely would reduce competition between two of only a handful of chemical companies that manufacture certain types of crop protection chemicals and the only two U.S. producers of acid copolymers and ionomers, potentially harming U.S. farmers and consumers.
“The Department of Justice conducted a thorough investigation into this merger,” said Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division. “As originally proposed, the merger would have eliminated important competition between Dow and DuPont in the development and sale of insecticides and herbicides that are vital to American farmers who plant winter wheat and various specialty crops. In addition, it would have given the merged company a monopoly over ethylene derivatives known as acid copolymers and ionomers that are used to manufacture many products, including food packaging. The remedies obtained by today’s settlement, including the divestiture of DuPont’s market-leading Finesse and Rynaxypyr crop protection products, will preserve vigorous competition in the sale of these products and benefit American farmers and consumers alike.”
According to the department’s complaint, Dow and DuPont are two of only a few significant competitors in the markets for broadleaf herbicides for winter wheat and insecticides for chewing pests. Specifically, DuPont’s Finesse product is the market leading broadleaf herbicide for winter wheat, and Dow recently introduced a new broadleaf herbicide called Quelex to compete with Finesse. DuPont’s Rynaxypyr line of products, which are marketed in the United States under the brand names Altacor, Coragen, and Prevathon, are the top selling insecticides for chewing pests, and compete with Dow’s methoxyfenozide products, sold in the United States under the Intrepid brand, and Dow’s spinetoram products, sold under the Delegate and Radiant brands. The complaint alleges that the loss of competition between Dow and DuPont would result in higher prices, less favorable contractual terms, and a reduced incentive to innovate for each of these products.
The department’s complaint further alleges that Dow and DuPont are the only two U.S. suppliers of acid copolymers and ionomers, both of which are high-pressure ethylene derivative products that are important inputs for food packaging and other plastics applications. According to the complaint, customers for each of these products would have no choice but to accept higher prices from the merged company following the transaction.
Under the terms of the proposed settlement, DuPont must divest its market-leading Finesse herbicide and Rynaxypyr insecticide products to a buyer to be approved by the United States. The department said that the divestiture of these products, which have total combined annual U.S. sales of over $100 million, would preserve competition in U.S. markets for broadleaf herbicides for winter wheat and insecticides for chewing pests. The proposed settlement further requires Dow to divest its U.S. acid copolymers and ionomers business to a buyer approved by the United States to remedy the merger’s harm in the U.S. markets for acid copolymers and ionomers.
The department’s Antitrust Division and the European Commission cooperated closely throughout the course of their respective investigations. The European Commission announced on March 27, 2017, that it will approve the merger conditioned on certain divestitures to address concerns in a variety of products. These divestitures included several products also divested in the Antitrust Division’s proposed settlement, as well as Dupont’s assets used for research and development of new crop protection chemicals. Like the European Commission, the Antitrust Division examined the effect of the merger on development of new crop protection chemicals but, in the context of this investigation, the market conditions in the United States did not provide a basis for a similar conclusion at this time.
Dow, a Delaware corporation headquartered in Midland, Michigan, operates in approximately 180 countries, and employs over 50,000 people worldwide. Dow’s primary lines of business are chemical, plastic, and agricultural products and services, and its products are used in various end markets, ranging from agriculture to consumer goods. In 2016, Dow reported global revenues of approximately $48 billion.
DuPont, a Delaware corporation headquartered in Wilmington, Delaware, operates in approximately 90 countries, and employs more than 60,000 people worldwide. Dow’s primary products include crop protection chemicals and performance materials such as plastics and polymers. In 2016, DuPont reported global revenues of $24.6 billion.
As required by the Tunney Act, the proposed consent decree, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
INTERPOL Washington Welcomes "Flat" DetaileesRead the Press Release
On Wednesday, June 14th, INTERPOL Washington—the U.S. National Central Bureau--welcomed some very special detailees. Flat Stanley, Stella, Saul, and Santos will be learning about INTERPOL Washington’s national and international mission this summer. Their time with INTERPOL Washington will culminate with a presentation to the children of our employees, during the Department of Justice’s Kids Day activities in August.
On his first day, Flat Stanley helped INTERPOL Washington celebrate Flag Day by attending a Washington Nationals baseball game where he met a local Metro Transit police officer and a fire fighter from the L’Enfant Plaza fire station. He also showed his patriotism by posing for a photograph with the U.S. flag.
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.
Flat Stanley attends a Washington Nationals baseball game.Florida Man Indicted for a Hate Crime for Making Telephonic Threat to Shoot Congregants at the Islamic Center of Greater MiamiRead the Press Release
The Justice Department today announced that Gerald Wallace, 35, was indicted by a federal grand jury on a hate crime charge for obstructing the free exercise of religious beliefs by threatening to shoot members of a mosque in Miami Gardens, Florida.
According to court documents, during the evening of February 19, 2017, Wallace left a voicemail message for the Islamic Center of Greater Miami, located in Miami Gardens, Florida.
The defendant is alleged to have left a profanity laden message against Islam, the prophet Mohammed, and the Koran, during which he threatened to go to the mosque, and stated, "I'm gonna shoot all y'all."
Counts One and Two of the superseding indictment charge Wallace with obstructing the free exercise of religious beliefs and the interstate transmission of a threatening communication for leaving this threating voicemail. Wallace was previously indicted, on May 25, 2017, for the interstate transmission of a threatening communication for making this threat. If convicted of both counts, Wallace faces a maximum penalty of 25 years in federal prison.
The charges contained in this indictment are simply accusations, and not evidence of guilt. A defendant is presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the FBI’s Miami Area Corruption Task Force and the Miami Gardens Police Department. This case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr. of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
District Court Enters Permanent Injunction Against Florida and New Jersey Companies and Senior Managers to Stop the Distribution of Unapproved, Misbranded, and Adulterated DrugsRead the Press Release
The U.S. District Court for the Southern District of Florida entered a consent decree of permanent injunction against Stratus Pharmaceuticals Inc. of Miami, Florida; Sonar Products Inc. of Carlstadt, New Jersey; and individuals Alberto Hoyo and Juan Carlos Billoch, the Department of Justice announced today. The injunction permanently enjoins the defendants from distributing unapproved, misbranded, and adulterated drugs in violation of the federal Food, Drug, and Cosmetic Act (FDCA).
The Department filed a complaint in the U.S. District Court for the Southern District of Florida on April 28, at the request of the U.S. Food and Drug Administration (FDA). The complaint alleges, among other things, that the defendants shipped drugs that had not been approved by the FDA and failed to abide by current good manufacturing practices.
Products Inc. (Sonar), a New Jersey corporation, manufactures drugs for Stratus Pharmaceuticals Inc. (Stratus). Stratus, a Florida corporation, distributes prescription and non-prescription drugs and, according to the complaint, owned 80 percent of Sonar. The complaint also included Alberto Hoyo, who is president of Stratus and was a member of Sonar’s board of directors, and Juan Carlos Billoch, who is vice president of operations of Stratus and was a member of Sonar’s board of directors.
According to the complaint, Sonar and Stratus manufactured and/or distributed a number of dermatological products that were not approved by the FDA. The complaint further details that on April 13, 2015, the United States seized unapproved and misbranded drugs held at Stratus’s facility and manufactured by Sonar. They included X-Viate 40 percent Gel and X-Viate 40 percent Lotion.
“Compliance with the Food, Drug, and Cosmetic Act is necessary to ensure the safety and effectiveness of the medicines we all use,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department will continue to work closely with the FDA to protect the public from conduct, like that alleged in the complaint, which poses a potential risk to consumers.”
The consent decree entered today resolves the litigation and requires that defendants cease the production and distribution of unapproved and misbranded drugs. The decree further requires that defendants adhere to current good manufacturing practices for drugs, and requires Sonar to cease manufacturing until the company implements specified remedial measures. The measures include among other things, establishing a quality assurance and quality control program and retaining an expert to conduct a comprehensive evaluation of Sonar’s operations.
As noted in the complaint, FDA inspections of Sonar’s facility in 2014 and 2015, and Stratus’s facility in 2014, revealed violations of current good manufacturing practices that demonstrated a lack of quality oversight of the manufacturing, processing, and testing of drugs such that, if they continued, posed a threat to the public health. The complaint alleged, for example, that Sonar failed to reject drug products that did not meet established standards or specifications. Sonar also knew that some products were exceeding microbial limits and contained objectionable microorganisms, but did not thoroughly investigate the cause of such problems, and instead released the products to the market.
Also, according to the complaint, several products manufactured by Sonar were recalled in 2015 for microbial contamination, and an inspection concluded Stratus did not have the proper controls in place or possess adequate quality oversight to assure that finished drug products meet established specifications for identity, strength, quality, and purity prior to release.
This matter was handled by Trial Attorneys Jacqueline Blaesi-Freed and Monica Groat of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James Weinkle of the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of Associate Chief Counsel for Enforcement Joshua Davenport of the FDA’s Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
Department of Justice Observes World Elder Abuse Awareness DayRead the Press Release
On World Elder Abuse Awareness Day, our nation joins the world in voicing our opposition to elder abuse, neglect, and financial exploitation. On this day, the Department of Justice extends its support to elder victims and their loved ones, recognizing with gratitude those who have committed their lives to protecting older Americans, and affirms its unwavering commitment to combatting elder mistreatment in all its forms.
The U.S. Census Bureau projects that that the population of Americans over 65 years of age will increase to 83.7 million in 2050, nearly double its estimated population of 43.1 million as of the most recent census. While many Americans are enjoying longer, healthier lives, far too many older Americans are suffering in the shadows. Some studies suggest that 10 percent of seniors may suffer some form of physical abuse, psychological or verbal abuse, sexual abuse, financial exploitation or neglect. Likewise, other studies suggest that older adults may suffer billions in losses as a result of financial fraud, and that being victimized by financial fraud could lead to higher rates of hospitalization and mortality.
“On World Elder Abuse Awareness Day, the Department of Justice gives voice to those who have suffered from elder abuse, neglect, fraud and exploitation and commits to supporting those who combat elder mistreatment every day,” said Attorney General Jeff Sessions. “The department is dedicated to actively working with our federal agency partners as well as state, local and international law enforcement, prosecutors and civil attorneys, counselors and case workers, and healthcare professionals to address the growing problem of crime targeting the nation’s seniors.”
The Department of Justice, through its Elder Justice Initiative, which includes the work of many Department components, is working on multiple fronts to protect older Americans from elder mistreatment. The Department has aggressively prosecuted mass mailing fraud schemes, such as Jamaican lottery and psychic scams, many of which are international in nature and target seniors. The Department also launched 10 regional Elder Justice Task Forces across the country in California, Georgia, Kansas, Kentucky, Iowa, Maryland, Ohio, Pennsylvania, Tennessee, and Washington to enhance the ability of federal, state, and local authorities to work together to combat elder financial fraud and to pursue those nursing homes that provide grossly substandard care to their Medicare and Medicaid residents. Additionally, in 2016, the Department’s Office for Victims of Crime and the Elder Justice Initiative, in partnership with the Corporation for National and Community Service, established the two-year Elder Justice AmeriCorps program, which received $2 million in Justice Department grant funding to provide legal assistance and support services to victims of elder abuse, neglect and exploitation. Lastly, the Department actively supports state and local efforts to prevent and combat elder abuse in a variety of ways, including:
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Helping older victims and their families by connecting them to available resources, assistance and information on its Elder Justice website: www.elderjustice.gov;
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Advancing our collective understanding of elder abuse through projects like the Elder Abuse Prevention Demonstration Project: www.justice.gov/elderjustice/pr/national-institute-justice-awards-funding-study-elder-abuse;
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Enhancing state and local efforts to combat and prevent elder abuse through the development and dissemination of training materials and resources for prosecutors, law enforcement, civil legal aid workers, victim specialists, and clinicians; and
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Raising public awareness of elder abuse and financial exploitation through the Elder Justice website, webinars, and public meetings.
While some progress has been made in stemming the tide of elder abuse and financial exploitation, there is so much that we still must accomplish. So, on this World Elder Abuse Awareness Day, we ask all Americans to join the Department of Justice in redoubling its efforts to prevent and combat all forms of elder abuse, neglect, and financial exploitation.
More information about the Department of Justice’s elder justice efforts can be found on its Elder Justice Website at https://www.justice.gov/elderjustice.
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Chattanooga Man Sentenced for Solicitation to Burn Down a Mosque in Islamberg, New YorkRead the Press Release
Robert Doggart, 65, of Signal Mountain, Tennessee, was sentenced to 235 months in prison for soliciting another person to violate federal civil rights laws by burning down a mosque in Islamberg, a hamlet outside Hancock, New York, announced Attorney General Jeff Sessions and United States Attorney Nancy Stallard Harr of the Eastern District of Tennessee. Doggart also was found guilty of soliciting another person to commit arson.
Evidence presented at trial established that, in February 2015, the FBI learned through a confidential source that the defendant was recruiting people online to carry out an armed attack on Islamberg, a community that is home to a large Muslim population. Doggart arranged to meet with the confidential source in Nashville, where he discussed details of his plan to burn down a mosque, a school, and a cafeteria in Islamberg. Doggart showed the confidential source maps of Islamberg, laid out the number of guns and types of ammunition they would need to destroy the community, and discussed different ways to burn down a mosque and other buildings. Through a court order, the FBI also began intercepting Doggart’s phone calls during which Doggart solicited and recruited people to join him in his attack on Islamberg.
Doggart specifically targeted the mosque because it was a religious building, and he discussed burning it down or blowing it up with a Molotov cocktail or other explosive device. At trial, the jury heard recorded conversations in which Doggart repeatedly discussed killing people, including one in which Doggart said, “I don’t want to have to kill children, but there’s always collateral damage.”
“People of all faiths have the fundamental right to worship freely, and this administration will not tolerate attempts to violate that right,” said Attorney General Jeff Sessions. “The defendant solicited people to commit acts of violence in an effort to terrorize a community simply because of its Islamic faith. The Justice Department will continue to aggressively investigate and prosecute attacks against our faith-based communities.”
“The people of the Eastern District of Tennessee will not tolerate the type of threats and actions perpetrated by Doggart. The United States Attorney’s Office will aggressively prosecute those who seek to disrupt the safety of our community and others,” said U.S. Attorney Nancy Stallard Harr.
The case was investigated by the FBI’s Knoxville Division. This case was prosecuted by Trial Attorney Saeed A. Mody of the Civil Rights Division, Assistant U.S. Attorney Perry H. Piper of the Eastern District of Tennessee, and assisted by Trial Attorney Clement McGovern of the National Security Division’s Counterterrorism Section.
Statement by Deputy Attorney General Rod Rosenstein on the Shooting at the Congressional Baseball Practice in Alexandria, VARead the Press Release
Deputy Attorney General Rod Rosenstein today released the following statement on the shooting at the congressional baseball practice in Alexandria, VA:
“This morning, Members of Congress, Senators, congressional staffers, and Capitol Police officers were targets of a senseless and cowardly attack during a practice for a bi-partisan, charity baseball game. Our thoughts are with the victims and their families. We pray for their swift recovery. The Department of Justice will provide all resources necessary for a thorough investigation."
“I commend the heroic officers of the Capitol Police and the Alexandria Police Department. Their willingness to risk their lives to keep us safe is humbling and inspiring."
Joseph W.M. Develles Sentenced for Unlawful Possession of Firearms and Possession of Marijuana with Intent to DistributeRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant JOSEPH WENDELL MONTON DEVELLES, age 24, was sentenced in District Court on June 13, 2017, to a 21-month term of imprisonment for Possession of Firearms by a Prohibited Person and Possession with Intent to Distribute Less than 50 Kilograms of Marijuana. The Court also ordered two years of supervised release and a mandatory $200 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On October 31, 2016, DEVELLES pled guilty to an Information that charged Possession of Firearms by a Prohibited Person, in violation of 18 U.S.C. § 922(g)(3), and Possession with Intent to Distribute Less than 50 Kilograms of Marijuana, in violation of 21 U.S.C. § 841(a)(1). The firearms offense was based on DEVELLES being an unlawful drug user at the time he possessed the weapons. During February 2016, officers from the Guam Police Department (GPD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) executed a search warrant at the defendant’s residence in Astumbo, Dededo. Inside a bedroom, law enforcement found two five-gallon buckets that contained 2.4 pounds of marijuana. They also discovered a Glock .380 caliber pistol, a Marlin 270 Win. rifle, ammunition, and approximately $26,300 in U.S. currency. The money was proceeds from the sale of marijuana. DEVELLES had previously been convicted in the Superior Court of Guam for driving while intoxicated. Chief District Judge Tydingco-Gatewood noted that DEVELLES committed federal offenses while still on probation.
The investigation was conducted by ATF and the GPD-Special Investigation Section. The case was prosecuted by Belinda Alcantara, Assistant United States Attorney for the District of Guam.
Chyanna Marie Camacho 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 CHYANNA MARIE CAMACHO, age 40 from Dededo, was sentenced today in District Court to a 70-month term of imprisonment for Attempted Possession of Methamphetamine with Intent to Distribute. The Court also ordered three years of supervised release following imprisonment, 75 hours of community service, and a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On August 11, 2016, CAMACHO pled guilty to an Indictment charging her with Attempted Possession of Methamphetamine with Intent to Distribute, in violation of 21 U.S.C. §§ 846 and 841(a)(1). The investigation revealed that CAMACHO and other individuals agreed to use the mail system to distribute large quantities of methamphetamine on Guam. On June 28, 2016, federal agents seized a U.S. Postal Service package that concealed over 78.7 grams of methamphetamine. Laboratory tests later determined that the drugs were 98% pure. The investigation further revealed that CAMACHO arranged to have the drugs sent to her in Guam from Bremerton, Washington.
The U.S. Postal Inspection Service, the Drug Enforcement Administration, and the Department of Homeland Security, Homeland Security Investigations conducted the investigation. The case was prosecuted by Rosetta San Nicolas, Assistant United States Attorney for the District of Guam.
Richard Peng Sentenced for Harboring Birth TouristRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant RICHARD PENG aka PAI PENG, a citizen of the United States and Taiwan, was sentenced on June 12, 2017, in District Court, to six months imprisonment. The Court also ordered a one-year term of supervised release following PENG’S release, and a fine of $2,000.00, in addition to the payment of a mandatory $100 assessment fee.
On August 2, 2016, PENG was charged by Information with Harboring an Illegal Alien, in violation of 8 U.S.C. § 1324(a)(1)(A)(3). On August 3, 2016, PENG waived indictment by the grand jury, and entered a guilty plea to the charge. From November 2014 until February 2015, PENG housed a Chinese birth-tourist after she had overstayed her conditional parole, with the intention of avoiding her detection by immigration authorities.
Acting United States Attorney Anderson stated, “On April 11, 2017, Attorney General Sessions announced that DOJ will place a high priority on establishing lawfulness in our immigration system. The District of the Northern Mariana Islands will see an increase in federal law enforcement efforts to implement this important policy change. As this case demonstrates, the Department is committed to holding persons accountable for enticing, encouraging and abetting aliens who unlawfully enter or remain in the United States.”
The investigation was conducted by the U.S. Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by James J. Benedetto, Assistant United States Attorney for the District of the Northern Mariana Islands.
Statement by Attorney General Jeff Sessions on the Ninth Circuit DecisionRead the Press Release
Attorney General Jeff Sessions today released the following statement on the Ninth Circuit’s decision on President Trump’s Executive Order:
“President Trump’s Executive Order is well within his lawful authority to keep the Nation safe. We disagree with the Ninth Circuit’s decision to block that authority.”
“Recent attacks confirm that the threat to our nation is immediate and real. Certain countries shelter or sponsor terrorist groups like ISIS and al Qaeda, and we may be unable to obtain any reliable background information on individuals from these war-torn, failed states. We must not place our nation at risk until we have the ability accurately and responsibly to vet those seeking entry here. The President was clear in his landmark speech in Saudi Arabia: this is not about religion; it is about national security. In fact, the President called upon leaders in the Muslim world to join the United States in protecting religious freedom for all, including the freedom to be free from violence and terror. “
“The Executive Branch is entrusted with the responsibility to keep the country safe under Article II of the Constitution. Unfortunately, this injunction prevents the President from fully carrying out his Article II duties and has a chilling effect on security operations overall.”
“President Trump knows that the country he has been elected to lead is threatened daily by terrorists who believe in a radical ideology, and that there are active plots to infiltrate the U.S. immigration system -- just as occurred prior to 9/11. The President is committed to protecting the American people and our national security, and we are proud to support his mission to put America first by defending his right to keep us safe. That is why the Department of Justice will continue to seek further review by the Supreme Court.”
Lexington, Kentucky, Jury Convicts Clinical Psychologist for Role in $600 Million Social Security Disability Fraud SchemeRead the Press Release
A federal jury in Lexington, Kentucky, today convicted a clinical psychologist for his role in a Social Security disability fraud scheme that included a former Social Security Administration (SSA) administrative law judge and that involved the submission of thousands of falsified medical documents to the SSA, obligating the SSA to pay more than $600 million in lifetime benefits to claimants predicated on these fraudulent submissions.
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 Internal Revenue Service Criminal Investigations (IRS-CI) Nashville, Tennessee, Field Office; and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services-Office of the Inspector General’s (HHS-OIG) Atlanta Regional Office made the announcement.
“Today’s jury verdict holds accountable the final defendant for his role in the largest scheme to defraud the Social Security Administration in its history,” said Acting Assistant Attorney General Blanco. “Each defendant abused the trust placed in him as a professional for personal gain. We thank our law enforcement partners for their years-long investigation and commitment to this case.”
After a one-week trial in federal court in Lexington, the jury convicted Alfred Bradley Adkins, 45, of Shelbiana, Kentucky, 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. Sentencing has been scheduled for September 22, before U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky, who presided over the trial.
According to evidence presented at trial, Adkins conspired with former SSA administrative law judge David Black Daugherty and former Kentucky lawyer Eric Christopher Conn to defraud the U.S. Conn and Adkins submitted false and fraudulent medical documentation to the SSA, and Daugherty awarded disability benefits based on the same, in order to have the SSA pay claimants’ retroactive disability benefits, continue to pay claimants’ disability benefits in the future, award Medicare and Medicaid benefits to claimants, and pay Conn’s attorney fees (enabling him to pay Adkins), the evidence showed. The trial evidence demonstrated that the conspirators’ actions obligated the SSA to pay more than $600 million in disability benefits in more than 2,000 cases to claimants in Kentucky and elsewhere, irrespective of the claimants’ actual entitlement to benefits. During the nearly eight-year scheme, Conn received more than $7.5 million of taxpayer dollars in attorney’s fees, and paid more than $600,000 to Daugherty, and approximately $200,000 to Adkins, the evidence showed.
According to the trial evidence, Adkins performed perfunctory evaluations of claimants referred to him by Conn and used boilerplate reports to detail conditions to support disability findings. Additionally, the trial evidence showed that Adkins, at Conn’s request, altered his findings on certain reports and ultimately signed forms prepared by Conn purporting to show that claimants qualified for disability benefits, whether or not they did. Conn then submitted these artificially disabling reports and falsified forms to Daugherty and other administrative law judges in support of disability determinations.
Conn pleaded guilty on March 24, to a two-count information charging him with theft of government money and payment of illegal gratuities, and Daugherty pleaded guilty on May 12, to a two-count information charging him with receipt of illegal gratuities. Both Conn and Daugherty are awaiting sentencing.
The SSA-OIG, FBI, IRS-CI and HHS-OIG investigated the case. Trial Attorney Dustin M. Davis of the Criminal Division’s Fraud Section and Trial Attorney Elizabeth G. Wright of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case, with previous co-counsel including Assistant U.S. Attorney Trey Alford of the Western District of Missouri and Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.
Justice Department Requires Divestiture of General Electric Company’s Water & Process Technologies Business Before Merger with Baker Hughes IncorporatedRead the Press Release
The Department of Justice announced that it will require General Electric Co. and Baker Hughes Incorporated to divest GE’s Water & Process Technologies business in order to proceed with their merger. The department said that the proposed transaction, without the divestiture, would substantially lessen competition for refinery chemicals and services in the United States, leading to higher prices and a reduction in service quality.
The Justice Department’s Antitrust Division filed a civil lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns.
“Competition to provide refinery chemicals and services benefits a vital sector of our economy,” said Acting Assistant Attorney General Andrew Finch of the Antitrust Division. “Today’s action will ensure that oil and gas refiners continue to receive competitive prices for the chemicals and services needed to produce oil, gasoline, and other refined petroleum and natural gas products.”
According to the department’s complaint, the merger would create one of the largest oilfield service companies in the United States with $32 billion of combined revenue. The merger would unite two of the four companies that provide the sophisticated chemicals and services required to refine crude oil and natural gas. The complaint states that this reduction in the number of competitive alternatives would lead to higher prices and reduced service quality.
In conducting its investigation, the department’s Antitrust Division cooperated closely with its counterparts in a number of jurisdictions, including the European Commission, Canada, and Australia.
General Electric Co. is a New York corporation headquartered in Boston, Massachusetts. GE is a large, diversified corporation that, among other lines of business, supplies the oil and gas industry with a variety of products and services. GE generated $16 billion in revenues from oil- and natural gas-related products and services in 2015.
Baker Hughes Incorporated is a Delaware corporation headquartered in Houston, Texas. Baker Hughes serves customers across the oil and natural gas industries. Baker Hughes generated $15.7 billion in revenues in 2015.
As required by the Tunney Act, the proposed consent decree, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments by mail concerning the proposed settlement during a 60-day comment period to Kathleen S. O’Neill, Chief, Transportation, Energy and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth St. N.W., Suite 8000, Washington DC 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Israeli Executive Sentenced to Prison for Defrauding the Foreign Military Financing ProgramRead the Press Release
A former executive of an Israel-based defense contractor was sentenced today to 30 months in prison for his role in multiple schemes to defraud a multi-billion dollar United States foreign aid program, the Department of Justice announced.
After being extradited from Bulgaria in October 2016, Yuval Marshak pleaded guilty to one count of mail fraud, two counts of wire fraud and one count of major fraud against the United States in U.S. District Court for the District of Connecticut on March 13, 2017. In addition to his prison sentence, he was ordered to pay restitution to the U.S. Department of Defense (DoD) in the amount of $41,170 and pay a criminal fine of $7,500.
“The Antitrust Division is committed to prosecuting individuals who, like Yuval Marshak, commit crimes that corrupt the competitive process,” said Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division. “Today’s sentence reflects the seriousness of these crimes and should serve as a warning to those, wherever located, who scheme to defraud essential, taxpayer-funded programs.”
According to court documents, Marshak carried out three separate schemes between 2009 and 2014 to defraud the DoD’s Foreign Military Financing (FMF) program. Marshak and others falsified bid documents to make it appear that certain FMF contracts had been competitively bid when they had not. Marshak further caused false certifications to be made to the DoD stating that no commissions were being paid and no non-U.S. content was used in these contracts, when, in fact, Marshak had arranged to receive commissions and to have services performed outside the United States, all in violation of the DoD’s rules and regulations. Marshak arranged for these undisclosed commission payments to be made to a Connecticut-based company that was owned by a close relative to disguise the true nature and destination of these payments.
The United States spends billions of dollars each year through the FMF program to provide foreign governments, including Israel, with money which must be used to purchase American-made military goods and services. The rules and regulations of the FMF program require the disclosure of and approval for any FMF-funded commissions and require that all goods and services be of U.S. origin to qualify for FMF funding. These same rules also strongly encourage the use of competitive bidding in the award of all FMF contracts. American vendors who receive FMF funded contracts are required to certify their compliance with these regulations to the DoD.
The sentence announced today was the result of an investigation by the Antitrust Division’s New York Office and the Defense Criminal Investigative Service, with assistance from the Antitrust Division’s Foreign Commerce Section, the Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the District of Connecticut, and Israel’s Ministry of Defense. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to government contracts should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Glen Ruben, Jr. Sentenced to 60 Months Incarceration for Receiving Child Pornography from a MinorRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that on June 12, 2017, GLEN RUBEN, JR., of San Roque, Saipan, was sentenced by Chief Judge Ramona V. Manglona, of the U.S. District Court in the Northern Mariana Islands, to 60 months incarceration and three years of supervised release.
This sentence follows RUBEN’s plea of guilty on July 20, 2016, to one count of Receipt of Child Pornography, in violation of 18 U.S.C. § 2252(a)(2). As part of his plea, RUBEN admitted to requesting and receiving one or more visual depictions of a minor engaged in sexually explicit conduct, using a mobile device with Internet access. In addition to the sentence of 60 months of incarceration and three years of supervised release, RUBEN was ordered to register with the Sex Offender Registry in any jurisdiction in which he lives, works or attends school.
Acting U.S. Attorney Anderson stated, “the receipt of child pornography is an unconscionable offense that targets the most vulnerable persons in our communities. Unfortunately, social media has become a common tool for the circulation of such images. The harm to child victims can last a lifetime. The Department of Justice, in coordination with Homeland Security Investigations, will continue to aggressively pursue those who prey on children through the use of cyber technology.”
Anderson additionally reminds the public that those who have committed sexual offenses involving children have a duty to register and keep their registration current with the Sex Offender Registry in their jurisdiction, under federal and local law. Sex offenders who travel to the Northern Mariana Islands and who reside in the Northern Marianas must inform the CNMI’s Public Sex Offender Registry where they reside, work, or attend school. They must also periodically update their registration information. The Public Sex Offender Registry was created to protect the general public and victims, by informing the public of the whereabouts of sex offenders. The Public Sex Offender Registry for the CNMI can be found online at https://cnmi.nsopw.gov/.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in the sexual victimization of children and adults, possess or receive child pornography, and sex offenders who fail to register with the jurisdiction’s Sex Offender Registry.
The investigation was conducted by Homeland Security Investigations (HSI). The case was handled by Assistant U.S. Attorney James J. Benedetto.
Former Providence, Kentucky Police Officer is Charged with Civil Rights Violations and ObstructionRead the Press Release
The Department of Justice announced that a former police officer with the Providence (Ky.) Police Department was charged Thursday, June 8, 2017, by federal grand jury indictment, with two counts of willfully violating the civil rights of an arrestee and one count of obstructing justice by filing a false report. The announcement was made by Acting Assistant Attorney General Thomas E. Wheeler, II, head of the Civil Rights Division, and U.S. Attorney John E. Kuhn, Jr., of the Western District of Kentucky.
The indictment alleges that William Dukes, Jr., of Greenville, Kentucky, arrested J.L., a Webster County resident, on May 26, 2016, without probable cause to believe that J.L. had committed a crime, and that Dukes made this unlawful arrest to retaliate against J.L. for seeking to file a complaint against Dukes through state law enforcement agencies. The indictment alleges that the offense resulted in bodily injury to J.L. and that it involved the use of a dangerous weapon. A third count in the indictment charges Dukes with filing a false report with the intent to obstruct any investigation into the false arrest incident.
If convicted, Dukes faces a maximum statutory punishment of 10 years of imprisonment on each of the first two charges and a maximum statutory punishment of 20 years on the third charge.
An indictment is merely an accusation, and Dukes is presumed innocent unless proven guilty.
This case is being investigated by the FBI’s Owensboro Division, and is being prosecuted by Assistant U.S. Attorney Seth Hancock of the Western District of Kentucky, and Trial Attorney Roy Conn III of the Civil Rights Division’s Criminal Section.
Kansas Man Charged with Hate Crime, Firearm Offenses in Shooting of Three Men at Olathe BarRead the Press Release
The Justice Department today announced the indictment of Adam W. Purinton, 52, of Olathe, Kansas. Purinton was indicted by a federal grand jury on hate crime and firearm charges for shooting three men—including two Indian nationals—at an Olathe bar on Feb. 22, 2017.
The announcement was made by Acting Assistant Attorney General Thomas E. Wheeler, II, head of the Justice Department’s Civil Rights Division, and United States Attorney Thomas E. Beall of the District of Kansas.
Today’s indictment accuses Purinton of shooting and killing Srinivas Kuchibhotla because of Kuchibhotla’s actual and perceived race, color, religion and national origin. The indictment also accuses Purinton of attempting to kill Alok Madasani because of his actual and perceived race, color, religion and national origin.
A third count in the indictment charges Purinton with violating a federal firearms statute by discharging a firearm at Kuchibhotla, Madasani, and the third man, Ian Grillot, during those crimes of violence.
The indictment alleges that Purinton committed the offenses after substantial planning and premeditation, attempted to kill more than one person in a single criminal episode, and knowingly created a grave risk of death to others on the scene.
The statute authorizes a maximum penalty of death or life in prison; the Justice Department will determine at a later date whether, in this particular case, it will seek the death penalty.
An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
Investigating agencies include the FBI and the Olathe Police Department. This case is being prosecuted by Assistant United States Attorneys Tris Hunt and David Zabel of the District of Kansas and Trial Attorney Christopher J. Perras of the Justice Department’s Civil Rights Division.
Current and Former Boynton Beach, Florida Police Officers Indicted for Using Excessive Force Against an Arrestee, Filing False Reports and Obstructing JusticeRead the Press Release
A federal grand jury in West Palm Beach, Florida, returned a six-count indictment yesterday charging Boynton Beach Police Officer Michael Brown and former Boynton Beach Police Officers Justin Harris and Ronald Ryan, Jr., with unlawfully assaulting an arrestee, J.B., during a traffic stop on August 20, 2014 and then filing false reports of the incident. Boynton Beach Police Sergeant Phillip Antico was charged with falsifying a report of the incident and obstructing justice during the investigation.
The indictment alleges that while serving as patrol officers and conducting a traffic stop of a vehicle, Brown, Harris and Ryan unlawfully assaulted one of that vehicle’s passengers, J.B. The indictment further alleges that Antico, as the patrolmen’s supervisor, and Harris aided and abetted one another in falsifying a report of the incident and that Antico further intentionally misled a federal agent who conducted an investigation of the incident. The indictment also alleges that Brown, Harris and Ryan made false entries in reports of the incident.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
If convicted, Antico, Brown and Ryan each face a maximum punishment of 30 years imprisonment, and Harris faces a maximum punishment of 50 years imprisonment.
This case is being investigated by the West Palm Beach Resident Agency of the Federal Bureau Investigation. It is being prosecuted by Assistant U.S. Attorney Susan Osborne of the Southern District of Florida and Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice.
Former Las Vegas Strip Club Owner Pleads Guilty to Evading More than $1.7 Million in Employment TaxesRead the Press Release
The former owner of a Las Vegas, Nevada strip club pleaded guilty today in U.S. District Court in the District of Nevada to evading employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
According to documents filed with the court, Frederick John Rizzolo, 58, of Las Vegas, the former owner of The Crazy Horse Too, evaded paying more than $1.7 million in employment taxes that he owed for 2000 through 2002. Rizzolo paid The Crazy Horse Too’s floormen, bouncers, bartenders and shift managers in cash, but failed to provide accurate records of these payments to the Club’s bookkeepers. As a result, Rizzolo caused false employment tax returns to be filed with the Internal Revenue Service (IRS), which underreported wages paid and thus the taxes due. In 2006, Rizzolo admitted this conduct and pleaded guilty to conspiring to defraud the United States. Following his plea, however, Rizzolo took affirmative steps to conceal his assets and income to thwart the IRS from collecting the delinquent taxes that he owed. For example, Rizzolo directed $900,000 that he received from the sale of the Crazy Horse Too to an offshore bank account in the Cook Islands. He also withdrew $50,000 from a bank account, writing a check to a third party, who in turn provided the money back to Rizzolo, thereby avoiding an IRS levy and seizure of the funds. Additionally, Rizzolo lied to an IRS collections attorney, falsely stating that he had no income or assets and no ability to pay the taxes owed.
Sentencing is scheduled for Sept. 15. If the court accepts the parties’ agreement, Rizzolo will be sentenced to a period of 24 months in prison and will be ordered to pay restitution in the amount of $2,637,290 to the IRS.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Phillip N. Smith Jr. and Trial Attorney Rebecca J. Sable of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Auto Body Repair Shop Owner Sentenced for Role in Odometer and Title Fraud SchemeRead the Press Release
A Lawrenceville, Georgia man was sentenced in Norfolk, Virginia for his role in an odometer tampering and title fraud scheme, the Justice Department announced today.
Paul Robinson, 38, was sentenced to serve 37 months in prison, followed by three years of supervised release by Judge Robert G. Doumar in the Eastern District of Virginia. Judge Doumar also ordered Robinson to pay $320,797.82 in restitution to victims who purchased vehicles with rolled back odometers.
In February, Robinson pleaded guilty to one count of conspiracy to commit odometer tamping and securities fraud. Robinson, who formerly owned Affordable Auto Body Repair in Chesapeake, Virginia, admitted that he purchased high mileage vehicles, and that he, or someone acting at his direction, altered the vehicles’ odometers to reflect a fraudulent low mileage reading. Robinson and his co-conspirators then acquired Virginia motor vehicle titles with false, low mileage odometer readings. Those titles were used to sell the vehicles to unsuspecting purchasers.
“Not only does odometer fraud result in consumers paying more for their vehicles and having higher repair costs, there are significant safety risks in unknowingly driving high mileage vehicles,” said Acting Assistant Attorney Chad A. Readler of the Justice Department’s Civil Division. “We are committed to protecting consumers by prosecuting individuals who engage in these schemes.”
From 2012 to 2014, Robinson and his co-conspirators tampered with odometers and secured fraudulent motor vehicle titles for more than 100 vehicles. At times, the mileage readings on the altered odometers and fraudulent titles were 150,000 miles less than the vehicles’ actual mileage.
One of Robinson’s co-conspirators, Steven Bazemore, a former title clerk who assisted Robinson with securing fraudulent motor vehicles, previously pleaded guilty to conspiracy to commit securities fraud. On Sept. 22, 2016, Bazemore was sentenced to five years of probation, with the first year as home detention, and ordered to pay $219,552.82 in restitution to the victims.
This case was prosecuted by Trial Attorneys John W. Burke and Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch with assistance from Assistant U.S. Attorney Alan Salsbury of the U.S. Attorney’s Office for the Eastern District of Virginia. The investigation was handled by the Virginia Department of Motor Vehicles and the National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA).
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals having information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
More information on odometer fraud is available on the NHTSA website https://one.nhtsa.gov/Vehicle-Safety/Odometer-Fraud and tips on detecting and avoiding odometer fraud are available at this page: www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
For more information about the U.S. Attorney’s Office for the Eastern District of Virginia, visit https://www.justice.gov/usao-edva.
Department of Justice Issues Statement on Testimony of Former FBI Director James ComeyRead the Press Release
In response to testimony given today by former FBI Director James Comey, Department of Justice Spokesman Ian Prior issued the following statement:
- Shortly after being sworn in, Attorney General Sessions began consulting with career Department of Justice ethics officials to determine whether he should recuse himself from any existing or future investigations of any matters related in any way to the campaigns for President of the United States.
Those discussions were centered upon 28 CFR 45.2, which provides that a Department of Justice attorney should not participate in investigations that may involve entities or individuals with whom the attorney has a political or personal relationship. That regulation goes on to define “political relationship” as:
“[A] close identification with an elected official, a candidate (whether or not successful) for elective, public office, a political party, or a campaign organization, arising from service as a principal adviser thereto or a principal official thereof ***”
Given Attorney General Sessions’ participation in President Trump’s campaign, it was for that reason, and that reason alone, the Attorney General made the decision on March 2, 2017 to recuse himself from any existing or future investigations of any matters related in any way to the campaigns for President of the United States.
- In his testimony, Mr. Comey stated that he was “not *** aware of” “any kind of memorandum issued from the Attorney General or the Department of Justice to the FBI outlining the parameters of [the Attorney General’s] recusal.” However, on March 2, 2017, the Attorney General’s Chief of Staff sent the attached email specifically informing Mr. Comey and other relevant Department officials of the recusal and its parameters, and advising that each of them instruct their staff “not to brief the Attorney General *** about, or otherwise involve the Attorney General *** in, any such matters described.”
- During his testimony, Mr. Comey confirmed that he did not inform the Attorney General of his concerns about the substance of any one-on-one conversation he had with the President. Mr. Comey said, following a morning threat briefing, that he wanted to ensure he and his FBI staff were following proper communications protocol with the White House. The Attorney General was not silent; he responded to this comment by saying that the FBI and Department of Justice needed to be careful about following appropriate policies regarding contacts with the White House.
- Despite previous inaccurate media reports, Mr. Comey did not say that he ever asked anyone at the Department of Justice for more resources related to this investigation.
- In conclusion, it is important to note that after his initial meeting with career ethics officials regarding recusal (and including the period prior to his formal recusal on March 2, 2017), the Attorney General has not been briefed on or participated in any investigation within the scope of his recusal.
What They are Saying: Bipartisan Praise for Chris Wray as Next FBI DirectorRead the Press Release
"Chris is super smart, a great lawyer and highly experienced. He will serve the Department of Justice and Federal Bureau of Investigation well. I worked with Chris for a number of years and always had complete confidence in him. He simply doesn't make mistakes. We are lucky he decided to reenter public service."
--Larry Thompson, Former Deputy Attorney General
”Chris is a wonderful choice to lead the FBI who cares deeply about the institution and already has strong relationships with the FBI. His background at the helm of the criminal division offered an excellent experience working on national security, white collar crime and a range of federal crimes as well as offering the privilege of working with the fantastic men and women of the FBI every day. He’s an excellent lawyer who will provide even keeled leadership.”
--Alice Fisher, Former Assistant Attorney General for the Criminal Division
“This is an inspired nomination by the President. Chris Wray is a man of great intellect and unsurpassed integrity. He is a man of impeccable judgment. He is exactly the person the country needs at the FBI at this moment in our history. He will be beloved by the men and women of the Bureau and respected by all, Republicans and Democrats alike.”
--Judge J. Michael Luttig
"Chris Wray is a great choice for FBI Director. He is smart, independent and has a very impressive track record of service and experience in the Department of Justice where he worked closely with the FBI and was widely regarded as a strong leader. Chris's expertise covers a vast array of critical areas he will be dealing with, ranging from terrorism to white collar crime to cyberattacks. The country would be very fortunate to have someone of Chris's integrity and abilities leading the Bureau."
--Mary Jo White, Former Chair of the SEC under President Obama
"Chris Wray is the right man at the right time for the Nation and the FBI. He is a world-class prosecutor, lawyer, and leader with the integrity, experience, judgment, credibility, independence, and intellect needed to lead the FBI. He will bring the same immense talent, capacity for work and success in mission to the Bureau as he has brought in everything he has touched since he began his distinguished legal and public service career."
--John C. Richter, Former Acting Assistant Attorney General for the Criminal Division
“Chris is a person of extraordinary integrity, intelligence, and common sense. As the Director of the FBI, I have no doubt he would be outstanding. Years ago, when I was a Clinton Administration U.S. Attorney, I hired Chris as an Assistant U.S. Attorney. He was a star from the get-go, and always put justice before politics. The country needs more public servants like Chris Wray. I hope the Senate confirms him as quickly as possible.”
--Kent Alexander, Former U.S. Attorney under President Clinton
“Chris is a seasoned professional with experience in all critical areas of the Department’s law enforcement and national security operations. We can have absolute confidence that he will serve the Bureau and the nation with honor and distinction.”
--Ken Wainstein, Former Assistant Attorney General for the National Security Division
“I am delighted to hear the news that President Trump has nominated Chris Wray to be the next Director of the Federal Bureau of Investigation. I have known Chris Wray throughout his legal career and his public service at the Department of Justice. In all of those different positions, Chris Wray has served with distinction and integrity. I know he will bring his experience and intellect to the office of FBI Director. He will be a strong and positive influence at the bureau for the next decade. I am confident Chris Wray will be seen as an impartial and unbiased leader who will help maintain the critical and historical tradition of excellence at the FBI. The American people can have confidence and trust in his anticipated leadership of the FBI. Specifically, Chris will provide superb leadership to America's daily efforts to prevent and protect Americans and American interests against future acts of global terrorism.”
--Joe Whitley, Former Department of Homeland Security General Counsel and U.S. Attorney
"Chris Wray is an outstanding choice to lead the FBI. I have known and worked with Chris Wray for many years. He is an exceptional lawyer with impeccable integrity and sound judgment. His extensive experience as an Assistant U.S. Attorney and then as Assistant Attorney General of the Criminal Division during the immediate aftermath of 9/11 gives him the critically important skills required to manage this great law enforcement agency. His work as a defense attorney also gives him broader insight into how to most effectively manage the complex investigations that the FBI will conduct in the coming years. When with the Department of Justice, Chris worked tirelessly to uphold the rule of law, strengthen our national security, and protect the rights of victims of crime. I am confident that he will do the same as Director of the FBI. Chris is the kind of leader that the FBI needs and deserves.”
--Gary Grindler, Acting Deputy Attorney General under President Obama
“Chris Wray is a man of integrity with a deep commitment to the rule of law. His substantial experience, particularly in serving on our Justice Department team fighting terrorism after 9/11, uniquely qualifies him to protect America as FBI Director.”
--Former Attorney General John Ashcroft
“I worked for Chris as his counsel for terrorism from 2003 to 2005, during a period when international terrorism occupied a great deal of Chris’s time as the Assistant Attorney General. Chris was smart, hard-working and absolutely committed to the mission of the Department of Justice. He has the kind of judgment and integrity that we rightfully expect from an FBI Director and I applaud his nomination.”
--J. Patrick Rowan, former Assistant Attorney General for the National Security Division
"I’ve known Chris Wray for over two decades. He is smart, careful, tough and kind. He has a brilliant mind, great judgment, and unwavering integrity. The terrific women and men of the FBI will be well served, as will our country, with Chris at the helm.”
--Zach Fardon, Former U.S. Attorney under President Obama
.
“Chris Wray is a superb and serious lawyer with a strong moral compass. Having served under Chris when I was Director of the Enron Task Force, I witnessed first-hand his deep respect for the Department of Justice and the FBI, as well as his strong commitment to public service. The country is lucky to have someone of Chris’s caliber serve in such an important role.”
--Leslie Caldwell, Former Assistant Attorney General for the Criminal Division
“I’ve known him and worked with him for two decades, in both his private and public sector stints. He will bring the independence and strength needed in this challenging environment.”
--Neil McBride, Former U.S. Attorney under President Obama
Statements by Deputy Attorney General Rod Rosenstein and Associate Attorney General Rachel Brand on the Nomination of Chris Wray to be FBI DirectorRead the Press Release
Deputy Attorney General Rod Rosenstein and Associate Attorney General Rachel Brand today issued the following statements on the nomination of Chris Wray to be FBI Director:
“Chris Wray is widely respected for professionalism, independence, integrity and patriotism,” said Deputy Attorney General Rosenstein. “He served with great distinction in several important positions in the United States Department of Justice, and he helped manage the Department during a very challenging period. He is well qualified for the job and will be a superb Director of the FBI.”
"Chris Wray will be an outstanding Director of the FBI,” said Associate Attorney General Brand. “His deep law enforcement and national security experience speaks for itself. Having worked with Chris during his previous tenure in the Department of Justice, I know that he will lead the Bureau with integrity, sound judgment, and a steady hand.”
Statement by Attorney General Jeff Sessions on the Nomination of Chris Wray to FBI DirectorRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the nomination of Chris Wray to be FBI Director:
Chris Wray is an extraordinary person, possessing all the gifts necessary to be a great Director of the FBI. I congratulate President Trump for choosing a leader of proven skill, independence, and integrity, a man in whom all Americans can have confidence.
Chris combines a brilliant legal mind, outstanding accomplishments, and a proven record of public service. We are fortunate that he is willing to make this personal commitment to serve his country at this important time. He prosecuted many cases with FBI agents when he served as an assistant United States Attorney for four years. His exceptional abilities were recognized, and he was brought to Department of Justice headquarters to serve as Associate Deputy Attorney General and, later, in the key role of Principal Associate Deputy Attorney General under Deputy Attorney General Larry Thompson, where he performed superbly during the incredibly intense period after 9/11.
President Bush then asked Chris to take on the enormous responsibility of heading the Justice Department’s Criminal Division in 2003, and the United States Senate voted unanimously to confirm him to that position. At that time, he supervised both the general crimes and anti-terrorism roles of the Department, and worked closely with the FBI as the Bureau shifted to a much larger counterterrorism role. He has tremendous respect for the FBI’s agents, analysts, and professional staff, and the agents he worked with enthusiastically affirm his leadership and integrity.
The President asked us to look for an FBI Director who has integrity, who understands and is committed to the rule of law, and who is dedicated to protecting the American people from crime, gangs, and terrorists. We have found our man in Chris Wray.
Northern California Man Sentenced to Prison for Rigging Bids at Public Foreclosure AuctionsRead the Press Release
After being convicted at trial, a Lafayette, California, man was sentenced to 12 months and one day in prison for his role in a conspiracy to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Thomas Joyce was charged on Dec. 3, 2014, in an indictment returned by a federal grand jury in the Northern District of California. Joyce was convicted on Feb. 6, 2017, of conspiring to rig bids at real-estate foreclosure auctions in Contra Costa County. In addition to his term of imprisonment, Joyce was sentenced to serve three years of supervised release and ordered to complete 100 hours of community service.
Between June 2008 and January 2011, Joyce and other bidders at the auctions conspired not to bid against one another for selected properties, instead designating a winning bidder to win the property at the auction. The members of the conspiracy then held second, private auctions, known as “rounds,” to award the properties to members of the conspiracy and determine payoffs for other conspirators who had agreed not to bid against each other at the public auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held. When real estate properties are sold at public auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with the remaining proceeds, if any, paid to the homeowner.
The sentence is a result of the division’s ongoing investigation into bid rigging at public real estate foreclosure auctions in California’s San Francisco, San Mateo, Alameda and Contra Costa counties. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office.
Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Husband and Wife Convicted for Roles in Alien Harboring Scheme Involving Labor Exploitation of Domestic ServantRead the Press Release
On June 6, 2017, a federal jury in Camden, New Jersey, convicted defendants Michael Wood, 53, and Mary Wood, 45, of Mullica Hill, New Jersey, on charges arising from a scheme to smuggle a young Kenyan woman into the United States and harbor and exploit her for domestic labor in their New Jersey home. Both defendants were convicted of alien harboring for financial gain and conspiracy. Mary Wood was also convicted of fraudulently obtaining naturalization as a United States citizen by falsely denying involvement in the criminal scheme, and was acquitted on one count of making false statements in connection with the investigation. Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, and Special Agent in Charge Marlon V. Miller of ICE Homeland Security Investigations Philadelphia, announced the convictions.
According to evidence presented in court and other documents filed in connection with this case, the defendants traveled to Kenya and recruited a young woman, identified as P.I. in court documents, to care for their four minor children in New Jersey. In August 2005, Michael Wood provided P.I. with his adult daughter’s British Passport and directed her to memorize the information and pretend to be the daughter. Upon entering the United States, Michael Wood presented the British Passport to immigration authorities and represented P.I. as his daughter.
Once in New Jersey, the defendants required P.I. to clean the house, do the laundry, cook, and care for the four minor children. She was responsible for being on call 24 hours a day, seven days a week, for which the defendants paid her a mere $200 a month. Evidence at trial revealed that the defendants would have been required to pay her approximately $5,200 a month pursuant to applicable U.S. labor laws. As demonstrated at trial, in order to conceal P.I. from authorities, the defendants did not permit her to leave the house except to walk the children to school and instructed her not to talk to anyone outside of the house or family. In June 2006, Mary Wood’s sister and other family members moved P.I. to their homes, where they continued to harbor her and exploit her domestic labor, until P.I. managed to leave in 2011, prompting the subsequent federal investigation.
“The defendants acted out of greed and circumvented immigration law to exploit the domestic labor of a young Kenyan woman, for minimal pay,” said Acting Assistant Attorney General Wheeler. “Today’s verdict sends a clear message that the Department of Justice will continue to seek justice on behalf of vulnerable individuals and will hold defendants who violate our laws accountable for their crimes.”
“HSI special agents will continue to vigorously pursue those who think the law does not apply to their criminal acts,” said Special Agent in Charge Miller. “We are resolute in our efforts to hold accountable the perpetrators who attempt to circumvent United States law by participating in alien harboring and domestic labor exploitation schemes. This verdict underscores the necessity of the public's awareness of these schemes and importance to bring justice to the victims."
The defendants face a maximum sentence of ten years’ imprisonment for alien harboring for financial gain and conspiracy, and Mary Wood faces ten years’ imprisonment for naturalization fraud. Sentencing has been scheduled for September 7, 2017.
Six additional defendants, including members of Mary Wood’s family, who continued to harbor P.I. from 2006 to 2011 previously pleaded guilty in the Eastern District of Pennsylvania to charges related to their roles in the continuing scheme.
The case was investigated by ICE Homeland Security Investigations Philadelphia, and prosecuted by Trial Attorneys Anita Channapati and Shan Patel of the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit.
Attorney General Jeff Sessions Ends Third Party Settlement PracticeRead the Press Release
Attorney General Sessions today issued the attached memo to all Department of Justice components and 94 United States Attorney’s Offices prohibiting them from entering into any agreement on behalf of the United States in settlement of federal claims or charges that directs or provides for a settlement payment to non-governmental, third parties that were not directly harmed by the conduct.
“When the federal government settles a case against a corporate wrongdoer, any settlement funds should go first to the victims and then to the American people— not to bankroll third-party special interest groups or the political friends of whoever is in power,” said Attorney General Jeff Sessions. “Unfortunately, in recent years the Department of Justice has sometimes required or encouraged defendants to make these payments to third parties as a condition of settlement. With this directive, we are ending this practice and ensuring that settlement funds are only used to compensate victims, redress harm, and punish and deter unlawful conduct.”
Under the last Administration, the Department repeatedly required settling parties to pay settlement funds to third party community organizations that were not directly involved in the litigation or harmed by the defendant’s conduct. Pursuant to the Attorney General’s memorandum, this practice will immediately stop.
Justice Department, with FTC, Wins Largest-Ever Telemarketing Penalty Against Dish NetworkRead the Press Release
As the result of long-running litigation to redress invasion of consumer privacy, most notably through violation of the National Do Not Call Registry brought by the U.S. Department of Justice as well as the States of California, Illinois, North Carolina, and Ohio, a federal court in Illinois has ordered penalties totaling $280 million and strong injunctive relief against Englewood, Colorado-based satellite television provider Dish Network.
A Federal Trade Commission (FTC) investigation determined that Dish Network violated the FTC’s Telemarketing Sales Rule, which includes provisions prohibiting telemarketing calls to phone numbers on the National Do Not Call Registry, telemarketing calls to persons who have asked a seller not to call them, and provisions prohibiting robocalls. The FTC referred the case to the Department of Justice, which filed suit in 2009.
The case went to trial in January 2016, before U.S. District Judge Sue E. Myerscough of the Central District of Illinois. The bench trial lasted approximately five weeks. In her ruling issued yesterday, Judge Myerscough found that Dish Network violated the do not call laws and invaded the privacy rights of American consumers, and that it knew or should have known that its actions were illegal.
Judge Myerscough also found that Dish Network was liable for the telemarketing violations of its so-called “retailers”—call centers that sold Dish Network programming by any means necessary. “Dish’s reckless decision to use anyone with a call center without any vetting or meaningful supervision demonstrates a disregard for the consuming public,” the judge wrote in her 475-page opinion. She went on to note the total penalty amount was appropriate given that “Dish caused millions and millions of violations of the Do Not Call Laws, and Dish has minimized the significance of its own errors in direct telemarketing and steadfastly denied any responsibility for the actions of its [retailers]. The injury to consumers, the disregard for the law, and the steadfast refusal to accept responsibility require a significant and substantial monetary award.”
“The National Do Not Call Registry is a popular federal program for the public to reduce the number of unwanted sales calls,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This case demonstrates the Department of Justice’s commitment to smart enforcement of consumer protection laws, and sends a clear message to businesses that they must comply with the Do Not Call rules.”
“The outcome of this case shows companies will pay a hefty price for violating consumers’ privacy with unwanted calls,” said Acting FTC Chairman Maureen K. Ohlhausen. “This is a great result for consumers, and I am grateful to FTC staff for their years of tenacious work investigating and developing this case. We and our Department of Justice and state partners will continue to bring enforcement actions against Do Not Call violators.”
The United States was represented by Trial Attorneys Lisa K. Hsiao, Patrick Runkle, Sang Lee and Daniel Crane-Hirsch of the Justice Department’s Consumer Protection Branch. FTC attorneys Russell Deitch and Gary Ivens were agency counsel on the matter.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Justice Department and City of Des Plaines, Illinois Settle Lawsuit over Alleged RLUIPA ViolationsRead the Press Release
The Justice Department today announced an agreement with the City of Des Plaines, Illinois, to resolve allegations that the City violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied a rezoning application to allow The Society of American Bosnians and Herzegovinans (SABAH), a Bosnian Muslim religious organization, to use a vacant building as a mosque.
The agreement resolves a lawsuit the Department filed in September 2015, after conducting an investigation into the City’s zoning and land use practices. A separate agreement resolving a similar lawsuit brought by SABAH has also been reached.
The United States’ complaint alleged that the City discriminated against SABAH on the basis of religion or religious denomination by treating land use applications by non-Muslim religious groups better than it treated SABAH’s on the basis of parking requirements and tax-exempt status, and that the City departed from its normal practices and procedures in the treatment and denial SAHAB’s request. The United States also alleged that the City’s denial imposed a substantial burden on SABAH’s religious exercise without serving a compelling governmental interest using the least restrictive means and that the City treated SAHAH on less than equal terms with similarly situated nonreligious groups, including a school and cultural center.
On February 26, 2017, the United States District Court for the Northern District of Illinois ruled that the United States’ claims should proceed to trial, and found that the City misapplied its zoning laws by imposing higher parking standards on SABAH than on non-Muslim religious groups, and that the City did not use the least restrictive means to address purported concerns it had with SABAH’s request.
As part of the agreement, the City of Des Plaines will abide by RLUIPA in its determinations involving religious land use requests, and has agreed to provide training on the requirements of RLUIPA to its officials and employees, and to publicize its non-discrimination policies, among other remedial measures.
“Religious freedom is a fundamental right that belongs to all persons and religious groups in the United States,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The Department of Justice’s Civil Rights Division will remain vigilant in its enforcement of federal law protecting the rights of religious communities to build and use property for religious worship.”
“Religious freedom is a fundamental right, and we will not tolerate the unlawful use of zoning or land use restrictions to infringe on that right,” said Joel R. Levin, Acting U.S. Attorney of the Northern District of Illinois. “The U.S. Attorney’s Office will continue to safeguard the rights of religious groups to establish houses of worship without fear of discriminatory zoning or land use practices.
RLUIPA prohibits discrimination on the basis of religion in land use and zoning decisions. Persons who believe they have been subjected to such discrimination in land use or zoning decisions may contact the U.S. Department of Justice Civil Rights Division at (800) 896-7743 and, in the Northern District of Illinois, they may also call the Unite States Attorney’s Office of Civil Rights Hotline at (855) 281-3339.
Owner of Nationwide Tax Return Preparation Franchisor Convicted of Conspiracy, Evading Employment Taxes and Other Tax-Related CrimesRead the Press Release
An Ohio resident was convicted Friday by a federal jury sitting in Cincinnati, Ohio of conspiracy to commit wire fraud, wire fraud, bank fraud, evasion of employment taxes and failure to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the evidence presented at trial, Fesum Ogbazion, 44, was the owner and CEO of ITS Financial LLC, which was the national franchisor of Instant Tax Service (ITS), a tax preparation business. Ogbazion founded ITS in 2004 and at one time it had more than 1,100 franchise locations throughout the United States.
From approximately January 2009 through 2012, Ogbazion conspired with others at ITS to generate loan and tax return preparation fees for ITS and its franchises by luring taxpayers into ITS franchises through a fraudulent nationwide advertising campaign. The ITS ads offered tax refund anticipation loans through an independent third party lender, despite the fact that ITS did not have such a lender to fund the promised loans. The evidence introduced at trial established that Ogbazion used the false advertising campaigns to entice customers into coming to ITS locations for a loan and then used their loan applications to prepare and file income tax returns – often without customers’ authorization. ITS charged its customers between $500 to $800 in tax preparation fees. Between 2006 and 2011, ITS collected more than $70 million in fees.
Ogbazion also failed to pay approximately $1.3 million in payroll taxes due from ITS and another business during four tax quarters in 2009 and 2010. Ogbazion evaded the Internal Revenue Service’s (IRS) attempts to collect the unpaid taxes by directing business revenue to nominee accounts, placing assets in the names of nominee entities and making false statements to an IRS revenue officer during the course of collection activity.
In 2013, ITS and Ogbazion were permanently barred from operating or being involved with any work or business relating to the preparation of tax returns.
Sentencing will be set at a later date. Ogbazion faces a statutory maximum sentence of 20 years in prison on the conspiracy count, 20 years in prison for the wire fraud counts, 30 years in prison for bank fraud, five years in prison for tax evasion and five years in prison for failure to pay over employment taxes. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Corey Smith, Trial Attorney Mark McDonald and Paralegal Specialist Tiffany Thompson of the Tax Division, and Paralegal Specialist Laura Strubbe of the U.S. Attorney’s Office for the Southern District of Ohio, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Southern District of Ohio for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Five More Defendants Plead Guilty for Their Roles in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
Five men, including two individuals who formerly worked at scam call centers in India, each pleaded guilty within the past two weeks for their respective roles in 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.
From May 26 to June 6, Rajubhai Patel, 32, an Indian national most recently residing in Willowbrook, Illinois; Viraj Patel, 33, an Indian national most recently residing in Anaheim, California; Dilipkumar Ambal Patel, 53, an Indian national most recently residing in Corona, California; and Fahad Ali, 25, a Pakistani national and permanent U.S. resident most recently residing in Dyer, Indiana, each pleaded guilty to money laundering conspiracy before U.S. District Court Judge David Hittner of the Southern District of Texas. Hardik Patel, 31, an Indian national most recently residing in Arlington Heights, Illinois, pleaded guilty to wire fraud conspiracy before the same court on June 2. Sentencing dates are pending for all five defendants.
According to admissions made in connection with the plea agreements, the five men 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 in 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.
Based on the statements in his June 2 guilty plea, beginning in August 2012, Hardik Patel owned and managed the day-to-day operations of an India-based scam call center before later leaving for the U.S. While in India, in his capacity as a manager, Hardik Patel communicated extensively via email, text, and other means with various India-based co-defendants to operate the scheme and exchange scripts used in the scheme, coordinate the processing of payments from scammed victims, obtain and exchange lead lists used by callers to target U.S. victims, and exchange spreadsheets containing the personal identifying information (PII) of U.S. persons misappropriated by the scammers to register reloadable cards used in the scheme. Hardik Patel also managed worker payroll and kept detailed records of profits and expenses for various associated scam call centers. Hardik Patel continued to communicate with India-based co-defendants about the scheme and assist with the conspiracy after he moved to the U.S.
According to his June 6 guilty plea, Rajubhai Patel operated as a runner and assisted a co-defendant in managing the activities of a crew of other runners, based primarily out of Illinois, who liquidated victim funds in various locales in the U.S. for conspirators from India-based call centers. Rajubhai Patel communicated about the liquidation of scam funds via electronic WhatsApp communications with domestic and India-based co-defendants, purchased reloadable cards registered using the misappropriated PII of U.S. citizens that were later used to receive victims’ funds, and used those cards to purchase money orders and deposit them into various bank accounts of co-defendants and others as directed. Rajubhai Patel also admitted to creating and maintaining spreadsheets that detailed deposits, payments to co-conspirators, expenses and profits from the scheme.
According to admissions made in his June 2 guilty plea, Viraj Patel first became involved in the conspiracy between April and September 2013, prior to entering the U.S., when he worked at and assisted with overseeing the operations of a call center in India engaging in scam activity at the behest of a co-defendant. After entering the U.S., beginning in December 2014 Viraj Patel engaged in additional activities in support of the scheme in exchange for a cut of the profits, including serving as a processor of scam victim payments and as a runner engaging in the purchase and liquidation of cards loaded with victim scam funds. Viraj Patel communicated with various India-and U.S.-based co-defendants in furtherance of the conspiracy, and also obtained and circulated lead lists to his co-conspirators containing the PII of U.S. citizens for use by the call centers in targeting victims of the various fraud schemes and to register reloadable cards used to launder the proceeds of the schemes.
Based on the admissions made in his May 26 guilty plea, since late 2013, Dilipkumar A. Patel operated as a runner in and around Southern California, along with other co-defendants based in the region. At the direction of India-based co-conspirators, often via electronic WhatsApp communications, Patel admitted to participating in the purchase of reloadable cards registered with the PII of U.S. citizens, and the subsequent liquidation of victim scam funds loaded to those cards by co-conspirators, while keeping a percentage of the victim funds on the cards for himself.
According to his guilty plea, also on May 26, beginning in or around 2013, Fahad Ali worked as a member of a crew of runners operating in the Chicago, Illinois area, the Southern District of Texas and elsewhere throughout the country. Ali admitted that he first served as a driver for an Illinois-based co-defendant engaging in activities in furtherance of the conspiracy. Ali later operated at the direction of that co-defendant and others, via various means of communication, including text messages, to purchase reloadable cards, and then liquidate victim scam proceeds placed on those cards by India-based co-conspirators, in exchange for recurring payments. Ali also admitted to using false identification documents to receive wire transfers from victims of the fraud.
To date, Hardik Patel, Rajubhai Patel, Viraj Patel, Dilipkumar A. Patel, Fahad Ali, 51 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 the most recent pleas, a total of nine defendants have pleaded guilty thus far in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari, Harsh Patel and Nilam Parikh previously pleaded guilty on April 13; April 26; May 11; and May 18, respectively.
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 in 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 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.
Three Northern California Real Estate Investors Convicted of Rigging Bids at Public Foreclosure AuctionsRead the Press Release
A federal jury today convicted three real estate investors for their roles in a conspiracy to rig bids at public real estate foreclosure auctions held in Northern California, the Department of Justice announced.
After a three-week trial, the jury convicted Michael Marr, Javier Sanchez, and Gregory Casorso, on all counts. Marr, Sanchez, and Casorso were convicted for conspiring to rig bids at foreclosure auctions in Alameda County, California, between June 2008 and January 2011. Marr and Sanchez were also convicted on charges of conspiring to rig bids at foreclosure auctions in Contra Costa County, California between July 2008 and January 2011. The three defendants were charged in an indictment returned by a federal grand jury in the Northern District of California on Nov. 19, 2014.
The evidence at trial showed that the defendants conspired with others to rig bids to obtain hundreds of properties sold at foreclosure auctions. The conspirators designated the winning bidders to obtain selected properties at the public auctions, and negotiated payoffs among themselves in return for not competing. They then held second, private auctions at or near the courthouse steps where the public auctions were held, awarding the properties to conspirators who submitted the highest bids.
Including today’s convictions, 68 individuals have pleaded guilty or been convicted after trial as a result of the department’s ongoing antitrust investigations into bid rigging at public foreclosure auctions in Northern California. Indictments are pending against other real estate investors who participated in the conspiracy.
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 at 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.
Three Members or Associates of Wildboys Gang in South Carolina Sentenced for Violent Crimes in Aid of RacketeeringRead the Press Release
One member and two associates of the Wildboys gang were sentenced today in federal court in Charleston, South Carolina, after each pleaded guilty to attempted murder in aid of racketeering for their roles in retaliation attacks against a rival gang.
The announcement was made by Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon, Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry B. Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division.
U.S. District Court Judge Richard M. Gergel sentenced Brian Manigo, aka “B-Nasty,” of Green Pond, South Carolina, to 10 years in prison; Damien Robinson, aka “Sacked Up,” also of Green Pond, South Carolina, to 10 years in prison; and Kelvin Mitchell, aka “Kevy Boy,”of Ruffin, South Carolina, to 39 months in prison, after each pleaded guilty to attempted murder in aid of racketeering.
According to court documents, all three defendants were members or associates of the Wildboys gang, a violent street gang that originated in the Green Pond area of Walterboro, South Carolina. From 2009 to 2015, Wildboys gang members used Facebook and YouTube to communicate with each other; threaten rival gang members and the police; flaunt gang colors, tattoos, and hand signs; and post photographs and videos depicting firearms, large amounts of cash, and what purported to be controlled substances. Gang members also engaged in violent criminal activities, including robberies of convenience stores, attempted murders of rival gang members, and narcotics trafficking. The Wildboys gang was also, for a time, aligned with another violent street gang called the “Cowboys” that originated out of the Brittlebank, or Eastside, area of Walterboro, South Carolina. In addition to sharing a common interest in posting threats and photographs depicting firearms, large amounts of cash, and what purported to be narcotics on Facebook and YouTube, the Wildboys and the Cowboys gangs shared common enemies. These shared interests resulted in shootings aimed at rival gang members, which left innocent by-standers seriously injured.
Manigo and Mitchell were sentenced for their roles in a May 14, 2011, retaliation shooting aimed at a rival gang member. While Mitchell drove the vehicle, Manigo retrieved an AK-47 rifle from the trunk of the car and fired multiple shots at the gang member who was standing in a crowd of individuals. An innocent by-stander sustained serious bodily injury as a result of the shooting.
Robinson was sentenced for his role in the April 7, 2015, retaliation drive-by shooting aimed at members of a rival gang. Robinson was the driver of the vehicle containing two other members of the Wildboys gang. As Robinson drove past the residence of the known rival gang members, the two passengers fired multiple shots at the home using an AR-15 and an SKS rifle. Robinson gave the AR-15, which belonged to him, to his fellow gang member to use during the shooting. The shooting resulted in serious bodily injury to an innocent victim inside the residence.
As part of the sentence, Manigo, Mitchell and Robinson were ordered to serve a term of three years of supervised release and to pay the costs of medical care for the victims.
A fourth member of the Wildboys, Joshua Manigault, who pleaded guilty to the April 7, 2015, shooting, has yet to be sentenced.
Devin Brown, who was also charged in the indictment, is scheduled for a jury trial to begin on June 26. The charges against Brown contained in the indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case was investigated by the ATF in Charleston, South Carolina, in partnership with the Walterboro Police Department; Colleton County Sheriff’s Office; Charleston County Sheriff’s Office; Dorchester County Sheriff’s Office; Summerville Police Department; Fourteenth Judicial Circuit Solicitor’s Office; First Judicial Circuit Solicitor’s Office; South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Tameaka A. Legette, Special Assistant U.S. Attorney from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, South Carolina.
South Florida Man Sentenced in Connection with Lottery Fraud Scheme Based in JamaicaRead the Press Release
A South Florida man was sentenced to prison in connection with the operation of a Jamaican-based fraudulent lottery scheme, the Department of Justice announced today.
Claude Shaw, 49, of Miramar, Florida, was sentenced to serve 36 months in prison and three years supervised release by U.S. District Court Judge William P. Dimitrouleas in Fort Lauderdale. Shaw was also ordered to pay $128,440 in restitution.
Shaw pleaded guilty on March 22, to one count of mail fraud in the Southern District of Florida. As part of his guilty plea, Shaw acknowledged that, from in or around September 2013, through in or around August 20l5, he participated in a scheme to defraud victims in the United States and unlawfully enrich himself.
“Today’s sentencing demonstrates the Justice Department’s commitment to combatting foreign-based lottery fraud schemes targeting individuals in the United States,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Financial schemes designed to defraud unsuspecting victims will be prosecuted to the fullest extent of the law.”
As part of the scheme, victims throughout the United States received telephone calls in which they were falsely informed that they had won over $1 million in a lottery and needed to pay money in advance to claim their winnings. The victims were instructed on how, and to whom, to send their money, including being instructed to send their money to Shaw. Victims sent over $100,000 to Shaw, who then forwarded a portion of the money to Jamaica. Victims never received any lottery winnings.
“The Postal Inspection Service will continue to actively investigate fraudulent lottery schemes based in Jamaica directed at ripping off victims in the United States,” said Inspector in Charge Antonio J. Gomez of the U.S. Postal Inspection Service’s Miami, Florida Division. “Lottery scams tied to Jamaica are targeting victims in the United States, and we will not allow fraudsters to use the U.S. mail to commit their crime.”
This prosecution is part of the Department of Justice’s effort working with federal and local law enforcement to combat fraudulent lottery schemes preying on American citizens.
Acting Assistant Attorney General Readler commended the investigative efforts of the U.S. Postal Inspection Service. The case is being prosecuted by Trial Attorney Arturo DeCastro of the Civil Division’s Consumer Protection Branch.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
Prisoner-Transport Officer Arrested for Sexual AssaultRead the Press Release
Eric Scott Kindley, 49, a prisoner-transport officer, was arrested yesterday in Stockton, California on charges related to sexually assaulting females in his custody, and threatening them with a firearm while doing so. During his initial appearance today, a federal judge in Sacramento, California ordered that Kindley be detained over the weekend, pending potential transport to Phoenix, Arizona, from where the complaint was issued.
According to the complaint and probable cause affidavit, Kindley operates Special Operations Group 6, a company that contracts with local jails throughout the country to transport individuals who have been arrested on out-of-state warrants. The probable cause affidavit alleges that from January through May of this year, Kindley engaged in sexual misconduct in his Dodge Caravan with three different female prisoners during three different transports. The transports were from California to Arizona, Alabama to Arizona, and Mississippi to New Mexico. In each instance, the victim was handcuffed and restrained, and taken to secluded locations where Kindley sexually assaulted her. All the while, Kindley threatened each victim with his firearm and warned them that he will get away with his conduct because no one will believe them.
The probable cause affidavit further alleges that during the transports, Kindley bragged to the victims about sexually assaulting other female prisoners during prior transports.
A complaint is only an allegation, and Kindley is presumed innocent unless proven guilty.
This investigation remains ongoing. Anyone with additional information is encouraged to call the Phoenix Division of the FBI at (623) 466-1999, or can email the Civil Rights Division at the Department of Justice at [email protected].
This case is being investigated by the Phoenix Division of the Federal Bureau Investigation and is being prosecuted by Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice and Assistant United States Attorney Abbie Broughton Marsh of District of Arizona.
Mississippi Corrections Officers Sentenced for Inmate Assault and Cover-UpRead the Press Release
Deonte Pate, 24, was sentenced to 5 years of probation with 12 weeks of weekend confinement for conspiring to cover up the beating of an inmate identified by his initials, K.H. Pate acknowledged that he submitted false reports and lied to the FBI in order to prevent knowledge of the beating from reaching outside authorities. Romander Nelson, 44, was sentenced to 5 years of probation, 14 weeks of weekend confinement, and a $500 fine for failing to protect the victim during the beating.
The victim, was temporarily blinded by the attack and suffered severe blood loss, a broken orbital bone, and permanent partial vision loss.
Pate and Nelson were charged in 2016 along with two other officers: Lawardrick Marsher, 28, and Robert Sturdivant, 47. All four were officers at Mississippi State Penitentiary, in Parchman, Mississippi.
Marsher has pleaded guilty to carrying out the assault; Sturdivant, a supervisor, has pleaded guilty to conspiring to cover the assault up. Marsher and Sturdivant are scheduled to be sentenced on June 15 for their roles in the crime.
“Every corrections officer owes a duty of honesty and integrity to the individuals under his or her protection,” said Acting Assistant Attorney General Tom Wheeler. “The Department of Justice is committed to ensuring the rights of all citizens, including those in our nation’s jails and prisons.”
"The FBI's mission is to protect the American people and uphold the constitution of the United States," said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. "This protection extends to those serving time for various offenses in jails and prisons throughout the United States. The constitution provides no protection to those hiding behind a correctional officer uniform and abusing the authority given to them. The FBI will continue to aggressively investigate any allegations of civil rights violations."
This case was investigated by the FBI’s Jackson Division, with the cooperation of the Mississippi Department of Corrections. It was prosecuted by Assistant U.S. Attorney Robert Coleman of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Justice Department Settles Disability-Based Housing Discrimination Lawsuit with City of Jacksonville, FLRead the Press Release
The Justice Department today announced a settlement with the city of Jacksonville, Florida, to resolve allegations that the city violated the Fair Housing Act and the Americans with Disabilities Act when it refused to all ow the development of permanent supportive housing for individuals with disabilities in its Springfield neighborhood.
The settlement, which must still be approved by the U.S. District Court for the Middle District of Florida, resolves a lawsuit the department filed in December 2016. That lawsuit was consolidated with similar ones brought by Ability Housing, Inc. and Disability Rights Florida, which were resolved in a separate settlement with the city.
“Federal law protects the right of individuals with disabilities to live in communities of their choice without facing discrimination,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “Through this settlement, the city of Jacksonville has taken steps to ensure that its residents can exercise this right.”
“The Fair Housing Act and the Americans with Disabilities Act protect against official adoption of community discrimination,” said Acting U.S. Attorney W. Stephen Muldrow, of the Middle District of Florida. “We commend the city of Jacksonville’s willingness to rectify its past actions, and we look forward to continuing to work with the city to ensure that individuals with disabilities in Jacksonville are afforded the same opportunities as those without disabilities.”
As part of the city’s settlement with the department, the city has amended its zoning code to better comply with federal anti-discrimination laws, including removing restrictions that apply to housing for persons with disabilities and implementing a reasonable accommodation policy. The city also agreed to rescind the written interpretation that prevented Ability Housing from providing the housing at issue, designate a fair housing compliance officer, provide Fair Housing Act and Americans with Disabilities Act training for city employees, and pay a civil penalty to the government of $25,000. In the separate settlement, the city agreed to pay $400,000 to Ability Housing and $25,000 to Disability Rights Florida, and to establish a $1.5 million grant to develop permanent supportive housing in the city for people with disabilities.
The department’s suit alleged that in 2014, Ability Housing received a $1.35 million grant from Florida to revitalize a 12-unit apartment building and create permanent supportive housing for “chronically homeless” individuals in Jacksonville who, by definition, have at least one disability. Ability Housing specifically intended to provide this housing to veterans and to connect them with optional support services. The city had previously certified that Ability Housing’s development of the property was consistent with the city’s zoning code but, as alleged in the department’s complaint, reversed itself in response to intense community pressure based on stereotypes about the disabilities of the expected residents. As a result, Ability Housing lost the grant and the property. The department conducted an independent investigation and subsequently filed this lawsuit.
Fighting illegal housing discrimination is a top priority of the Justice Department. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Title II of the Americans with Disabilities Act prohibits discrimination on the basis of disability by public entities. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
Justice Department Reaches Settlement Agreement with Washington State Public Transit System on Behalf of Washington Army National Guard MemberRead the Press Release
The Department of Justice announced today that it has reached a settlement agreement with Pierce County Transportation Benefit Area Corporation of Pierce County, Washington. The settlement resolves allegations that Pierce Transit violated the employment rights of Washington Army National Guard Member Lieutenant Colonel C. Van Sawin guaranteed by the Uniformed Services Employment and Reemployment Rights Act. USERRA safeguards the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations.
Pierce Transit, headquartered in Lakewood, Washington, is a municipal corporation and an operator of public transit in Pierce County, Washington, located south of Seattle. According to allegations brought by LTC Sawin, and independently investigated by the DOJ, Pierce Transit violated USERRA by failing to reemploy LTC Sawin in September 2016 after he returned from active duty military service. Pierce Transit worked cooperatively with DOJ during its investigation and worked to reach a settlement that addressed the USERRA violation found by the Department.
LTC Sawin is a United States Military Academy graduate, who served on active duty as a U.S. Army Battalion Maintenance Officer. LTC Sawin has also served as a reservist and, between 2005 and 2006, deployed to Iraq in support of Operation Iraqi Freedom. LTC Sawin was hired by Pierce Transit in 2007 and rose to become its Business Development Officer. In November 2015, LTC Sawin was activated to help lead the Washington National Guard’s earthquake readiness exercise, code named “Evergreen Tremor” – a weeklong exercise involving more than 1000 Washington National Guard soldiers and airmen across the state, as well as local, state and federal emergency response agencies. The drill took place in the Summer of 2016. Following the drill, LTC Sawin re-applied for his position in September 2016. Pierce Transit declined to re-employ LTC Sawin, stating that, while he was on active duty (in March 2016), it had laid him off following a reorganization that eliminated his position.
Under the terms of the settlement agreement, which is not an admission of liability by Pierce Transit, Pierce Transit must pay LTC Sawin $105,000 to compensate him for lost and/or reduced wages and benefits, and other damages. Additionally, the settlement seeks to reduce the likelihood of future USERRA violations by requiring Pierce Transit to adopt a USERRA policy, to provide training to its high-level officials and human resources staff on the USERRA rights and obligations of employers and covered employees, and to report allegations of violations of USERRA and certify its compliance therewith to the DOJ for a period of two years. Pierce Transit also agreed to resolve any dispute about the agreement in the United States District Court for the Western District of Washington.
“Failure to reemploy a person who leaves their job because of military deployment, service, or training is a violation of the law,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The Justice Department will ensure that service members like LTC Sawin, who was called away from his job in order to serve the country in the National Guard, can complete their military obligations without fear that by doing so, they will lose their civilian jobs.”
“We are fortunate to have many National Guard servicemen and women who live in western Washington who are prepared to sacrifice time with their families and civilian jobs to serve our country,” said U.S. Attorney Annette L. Hayes. “Our job in the United States Attorney’s Office is to protect the rights of these citizen soldiers and to hold accountable employers who fail to meet their duties under the law.”
Subject to certain conditions, USERRA requires employers to promptly reemploy returning service members in the positions they would have held had their employment been not interrupted by military service, or in a position of like seniority, status and pay. Following a referral from the Department of Labor, the United States Department of Justice is authorized to bring claims on behalf of the men and women of our nation’s Armed Forces and veterans to recover employment rights including back pay, benefits and injunctive relief.
The matter was investigated and resolved by Assistant U.S. Attorney and Civil Rights Program Coordinator, J. Michael Diaz and Assistant U.S. Attorney Sarah Morehead in the U.S. Attorney’s Office for the Western District of Washington, in collaboration with Andrew Braniff, USERRA/USAO Program Coordinator, in the Employment Litigation Section of the Civil Rights Division of the Justice Department.
The Justice Department’s Civil Rights Division have given a high priority to the enforcement of service members’ 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.
Florida Salesman Pleads Guilty to Evading Taxes on More Than $1.5 Million in IncomeRead the Press Release
A Fort Lauderdale, Florida resident pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Thomas Daly, 53, admitted that he evaded paying taxes on more than $1.5 million in income that he earned from 2002 to 2015. Daly further admitted that, except for the 2007 tax year, he has not filed an income tax return since 2002. Daly worked for a Fort Lauderdale company selling hurricane-resistant windows to residential homeowners in South Florida. In August 2009, the Internal Revenue Service (IRS) notified Daly of its intent to levy his wages because of his failure to pay taxes. To obstruct the IRS’s collection efforts, Daly established his own business, South Florida Home Marketing Inc. (SFHM), and changed his employment status from an employee to an independent contractor. Daly listed himself as the director of SFHM and opened a business bank account in its name. Due to Daly’s change in employment status, his employer paid SFHM directly and the IRS’s attempts to levy Daly’s wages were thwarted.
From approximately August 2009 through April 2017, Daly used SFHM’s bank account to pay for personal expenses, including rent, cigars, international travel, entertainment, his girlfriend’s cosmetic surgery, jewelry and a boat. He also falsely classified numerous personal expenses as business expenses on the memo line of the checks drawn on the SFHM bank account. Daly admitted that he made these false entries with the intent to claim false business expense deductions and evade the assessment of his income taxes. Daly admitted that his actions caused a tax loss of more than $351,241.
Sentencing is scheduled for Aug. 18. Daly faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Charles M. Edgar, Jr. and Michael C. Boteler of the Tax Division, who are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department and City of Jackson, Mississippi Resolve Lawsuit over Zoning of Group HomesRead the Press Release
The Justice Department today announced a settlement with the City of Jackson, Mississippi to resolve allegations that the city violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by preventing people in recovery from alcohol and substance abuse from living in group homes in most residential areas.
The settlement, which must still be approved by the U.S. District Court for the Southern District of Mississippi, resolves a lawsuit the department filed in September 2016.
The United States alleged that the City of Jackson engaged in a pattern or practice of discrimination on the basis of disability by imposing unlawful zoning restrictions on group homes for persons in recovery. The city enforced those restrictions against a group home operated by Urban Rehab, Inc., resulting in an order requiring the home to close and the residents to relocate. Several other homes for persons in recovery were at risk of being closed by the city’s enforcement of its ordinance.
As part of the settlement, the city agreed to revise its zoning code to permit persons in recovery to reside in all residential zones and to ease other restrictions on group homes for people with disabilities. The city has agreed to adopt a reasonable accommodation policy, train city employees on the requirements of the FHA and ADA, appoint a Fair Housing Compliance Officer, and report periodically to the Justice Department. The city will pay $100,000 to the owner of Urban Rehab, Inc., $35,000 to the department as a civil penalty, and $50,000 to a settlement fund that will compensate other victims.
“Federal law prohibits housing discrimination against people because of their disabilities,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “This settlement is an important commitment by the City of Jackson to bring its zoning code in line with both the Fair Housing Act and the Americans with Disabilities Act.”
The case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office of the Southern District of Mississippi.
The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe that they have experienced unlawful housing discrimination may contact the Justice Department at 1-800-896-7743, or by e-mail at [email protected].
Former Puerto Rico Senator and Businessman Found Guilty of BriberyRead the Press Release
Former Puerto Rico Senator Hector Martinez Maldonado and Juan Bravo Fernandez, the former president of one of the largest private security companies in Puerto Rico, were convicted of bribery following a four-week trial in San Juan, Puerto Rico, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Martinez Maldonado, 48, of Carolina, Puerto Rico, and Bravo Fernandez, 62, of San Juan, were each convicted on May 31, 2017, of federal program bribery.
According to evidence presented at trial, Martinez Maldonado was elected to the Puerto Rico Senate in 2004 and began serving a four-year term in January 2005. He was reelected in 2008. Beginning in 2005, Martinez Maldonado served as Chairman of the Puerto Rico Public Safety Committee, exercising significant control over legislation related to security and community safety. Bravo Fernandez was the president and chief executive officer of Ranger American, one of the largest private security firms in Puerto Rico.
The jury convicted the defendants for their role in a bribery scheme in which Bravo Fernandez provided Martinez Maldonado and Jorge de Castro Font, another former Puerto Rico senator, with a trip to Las Vegas to watch a championship boxing match between Winky Wright and Felix “Tito” Trinidad, a legendary Puerto Rican boxer, in exchange for the senators’ help with legislation favorable to Bravo Fernandez’s business interests.
Documents and evidence presented at trial showed that the trip to Las Vegas included first-class airfare; hotel rooms at the Mandalay Bay Resort and Casino; $1,000 tickets to the Trinidad vs. Wright boxing match; and meals, drinks and hotel rooms in Miami for the return trip. On March 2, 2005, the day that Bravo Fernandez paid for the boxing tickets, Martinez Maldonado submitted one of the bills favorable to Bravo Fernandez for consideration by the Puerto Rico Senate. The evidence at trial also showed that the hotel reservation was made the day after Martinez Maldonado presided over a Public Safety Committee hearing for one of the bills, and that, the day after the three men returned from their trip to Las Vegas, Martinez Maldonado and de Castro Font both cast their vote in support of one of Bravo Fernandez’s bills in the Senate.
De Castro Font served in the Puerto Rico House of Representatives from 1989 to 2004, and served in the Puerto Rico Senate from 2005 to 2008. De Castro Font pleaded guilty on Jan. 21, 2009, to 20 counts of honest services wire fraud and one count of conspiracy to commit extortion. He was sentenced on May 17, 2011, to 60 months in prison.
The case is being prosecuted by Deputy Chief Peter Koski and Trial Attorneys Monique Abrishami and Gwendolyn Stamper of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI’s San Juan Office.
North Carolina Man Sentenced to 15 Years for Charges Involving Scheme to Compel Five Women to ProstituteRead the Press Release
Eric J. Thompson, 29, of Jacksonville, N.C., was sentenced today to 15 years in prison and ordered to pay $19,200 in restitution after pleading guilty on November 9, 2016, to one count of interstate transportation for prostitution and one count of using an interstate facility to promote a prostitution business enterprise. Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina, and Special Agent in Charge Nick Anan of ICE Homeland Security Investigations Atlanta announced the sentence.
According to documents filed in the case and admissions in connection with the guilty plea, Thompson operated an interstate prostitution business enterprise in North Carolina and South Carolina. He used false promises of money and fame to recruit and entice five women to prostitute for his profit, and then used a scheme involving isolation, threats, and abuse to compel them to continue prostituting. Thompson further filmed himself performing sexual acts with the women and posted those videos online for sale without the victims’ consent.
“Human tracking is a heinous violation of an individual’s rights and freedoms, and today’s sentence sends a clear message that the Department of Justice will work tirelessly on behalf of human trafficking victims in order to stop this appalling criminal activity,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “We are grateful for our law enforcement partners and U.S. Attorney Bruce as we combat and dismantle human trafficking networks.”
“Our office was pleased to partner with the Civil Rights Division’s Human Trafficking Prosecutions Unit, ICE Homeland Security Investigations Atlanta, and the Raleigh Police Department in this important case. This prosecution gave the victims of this horrific human trafficking crime a voice and an opportunity to seek justice,” said United States Attorney John Stuart Bruce.
“Human trafficking is quite simply, a form of modern-day slavery, and the threats and abuse inflicted on these particular victims only adds to the heinous nature of the crime,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick Annan. “HSI made a record number of more than 2,000 human trafficking arrests in 2016 and rescued more than 400 trafficking victims nationwide, with many of them often hidden in plain sight. HSI will continue our relentless pursuit to investigate and seek prosecution of criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.”
Thompson was indicted on March 16, 2016, and charged with one count of sex trafficking, five counts of interstate transportation for prostitution, one count of using an interstate facility to promote a prostitution business enterprise, and one count of failing to maintain records related to individuals depicted in videos of sexually explicit conduct. A second defendant, Dequann Ross, was charged by information and pleaded guilty on August 9, 2016 to one count of using an interstate facility to promote a prostitution business enterprise for his role in aiding and abetting Thompson. He was sentenced on February 2, 2017, to 30 months in prison.
The case was jointly investigated by ICE Homeland Security Investigation’s Atlanta Division and the Raleigh Police Department. The case is being prosecuted by Assistant U.S. Attorneys Erin Blondel and Eleanor Morales of the Eastern District of North Carolina and Trial Attorney Vasantha Rao of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Justice Department and Bernards Township (NJ) Settle Lawsuit over Alleged RLUIPA ViolationsRead the Press Release
The Justice Department today announced an agreement with Bernards Township, New Jersey, to resolve allegations that the Township violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied zoning approval to allow the Islamic Society of Basking Ridge to build a mosque. The agreement also resolves allegations that, while the zoning application was pending, the Township revised its zoning code to unreasonably limit any house of worship from building in the Township.
The agreement resolves a lawsuit the Department filed in November 2016, after the Islamic Society applied to build on property owned that permitted places of worship as-of-right. A separate agreement resolving a similar lawsuit brought by the Islamic Society against Bernards Township has also been reached.
The United States’ complaint alleged that Bernards Township discriminated against the Islamic Society based on its religion and the religion of its members when it denied the zoning application; applied standards and procedures on the Islamic Society that it had not applied to other religious and non-religious assemblies in the past; and imposed a substantial burden on the Islamic Society’s religious exercise. The United States also alleged that Bernards Township’s revised zoning code imposes unreasonable limitations on all religious assemblies in the Township, in violation of RLUIPA.
As part of the agreement, Bernards Township will permit the Islamic Society to build the mosque. The Township also has agreed to provide training on the requirements of RLUIPA to its officials and employees and publicize its non-discrimination policies, among other remedial measures. Additionally, the Township will amend its zoning ordinance to limit the zoning restrictions placed on houses of worship. In a separate agreement between the Islamic Society and the Township, the Township agreed to pay $3.25 million in damages and attorney’s fees.
“Federal law protects people of all religious communities from discrimination and unlawful obstacles when they seek to build a place of worship," said Acting Assistant Attorney General Tom Wheeler of the Justice Department's Civil Rights Division. "Through this agreement, the Islamic Society of Basking Ridge and its members will be able to build a mosque and exercise the fundamental American right of freedom of worship.”
“Federal law requires towns to treat religious land use applications like any other land use application,” said Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey. “Bernards Township made decisions that treated the Islamic Society of Basking Ridge differently than other houses of worship. The settlement announced today corrects those decisions and ensures that members of this religious community have the same ability to practice their faith as all other religions.”
RLUIPA prohibits discrimination in land use and zoning decisions. Persons who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743.
Attorney General Jeff Sessions Has Selected James McHenry as the Acting Director of the Executive Office for Immigration ReviewRead the Press Release
WASHINGTON – Attorney General Jeff Sessions has selected James McHenry as the acting Director of the Executive Office for Immigration Review (EOIR).
“I am pleased James McHenry has agreed to lead the Executive Office for Immigration Review, and the Justice Department is fortunate to have him act as the agency’s director,” said Attorney General Sessions. “His experience will serve the department well as EOIR works to reduce the immigration court backlog and to ensure that the law is applied in a fair and efficient manner in immigration proceedings.”
Acting Director McHenry has previously served in the Executive Office for Immigration Review; he first joined the agency in 2003 through the Attorney General’s Honors Program and returned to the agency in 2016, when he was appointed as an administrative law judge (ALJ) for EOIR’s Office of the Chief Administrative Hearing Officer (OCAHO).
Earlier this year, McHenry served as a Deputy Associate Attorney General working on a variety of immigration-related litigation matters and overseeing multiple components reporting to the Office of the Associate Attorney General. From 2014 to 2016, he served as an ALJ for the Office of Disability Adjudication and Review in the Social Security Administration. Prior to that, he worked for the Office of the Principal Legal Advisor (OPLA), Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS) as an Assistant Chief Counsel and, later, as a Senior Attorney where he served as a lead attorney for national security, denaturalization, and gang cases, anti-human trafficking operations, and worksite enforcement matters. He also served a detail as a Special Assistant United States Attorney for the Criminal Division, U.S. Attorney’s Office, Northern District of Georgia.
Acting Director McHenry earned a Bachelor of Science from the Georgetown University School of Foreign Service, a Master of Arts in political science from the Vanderbilt University Graduate School, and a Juris Doctor from the Vanderbilt University Law School.
Department of Justice Observes National Moment of Remembrance on Memorial DayRead the Press Release
On Memorial Day, our nation unites in remembrance of the men and women of the U. S. Armed Forces who gave their lives to defend our freedoms. We share our prayers and sympathies with their families and loved ones, recognizing with gratitude that when our nation called, these brave heroes answered with their lives.
The Attorney General, and personnel throughout the Department of Justice, will observe the National Moment of Remembrance on Memorial Day, May 29, at 3 p.m. The National Moment of Remembrance, which was established by Congress in 2000, encourages all American citizens, including federal agency personnel, to pause for one minute to remember the men and women who lost their lives fighting for our nation and its values of freedom and peace. Every day, the Department of Justice pays tribute to the servicemembers who made the ultimate sacrifice. Memorial Day provides a special opportunity to reflect on the magnitude of that sacrifice.
Those who have fallen in defense of our country have earned an honor that must be recognized by both our words and deeds. Through its Servicemembers and Veterans Initiative, the Department of Justice is working tirelessly to ensure that all members of our military receive the legal and constitutional protections that they have fought so hard – and so valiantly – to help secure. They deserve the best that we have to give, because they have given the best of themselves. This Memorial Day, please join us at the Department of Justice to, as Abraham Lincoln stated at Gettysburg, dedicate ourselves to “the great task remaining before us—that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion.”
Texas Woman Pleads Guilty to Using Offshore Accounts in Panama to Conceal More than $1.3 Million from the IRSRead the Press Release
A resident of College Station, Texas, pleaded guilty today to conspiring to defraud the United States by using offshore accounts in Panama to conceal more than $1.3 million in royalty income that she earned from oil wells, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents and information provided to the court, Joyce Meads, 73, admitted that she filed false 1997 through 2009 individual income tax returns, omitting more than $1.3 million in royalty income that she received from oil wells. From approximately April 1997 through April 2010, she conspired with offshore promoters to disguise this income, setting up nominee companies in Delaware and Panama in the name of W.G. Holdings Corporation and transferring her interest in the oil wells to the nominee entity in Delaware. Meads’s monthly royalty checks were issued to W.G. Holdings. For approximately a decade, Meads had her royalty checks sent to a Miami post office box where they were picked up, couriered to Panama and deposited into her nominee accounts. Meads repatriated funds by disguising them as scholarships or loans from W.G. Holdings to herself. She later transferred the funds to bank accounts in her own name or her mother’s name. Meads admitted that she caused a tax loss of more than $250,000. Two of the promoters who assisted Meads, Marc Harris of The Harris Organization, Republic of Panama, and Boyce Griffin of Offshore Management Alliance Ltd., Republic of Panama, have also been convicted of conspiracy and other charges and were previously sentenced to prison.
“For more than a decade, Joyce Meads attempted to conceal her income from the Internal Revenue Service (IRS) by assigning it to a nominee entity and stashing it offshore,” said Acting Deputy Assistant Attorney General Goldberg. “As today’s plea makes clear – the days of safely hiding your money offshore are over – the Department continues to work with its law enforcement partners to find and hold accountable those who seek to evade paying their fair share of taxes.”
“Joyce Meads’ attempt to use complex offshore schemes to evade paying her fair share of income taxes was no match for the skills of IRS Criminal Investigation special agents,” said Chief Richard Weber of IRS Criminal Investigation (CI). “IRS CI and the Department of Justice’s Tax Division share the same vision when it comes to investigating those who attempt to hide their income; whether it’s through offshore holdings or state-side entities, we are determined to put an end to this type of fraudulent activity.”
Sentencing is scheduled for Aug. 4. Meads faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant Chief Greg Tortella of the Tax Division, who is prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Qiran Li Sentenced to Prison in Ice Trafficking CaseRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that defendant QIRAN LI, age 31, from Susupe, Saipan, was sentenced in District Court to an 18-month term of imprisonment, to be followed by two years of supervised release, and 50 hours of community service, for Distribution of a Controlled Substance (Methamphetamine). The Court also ordered LI to pay a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On December 2, 2016, LI was charged by Indictment with Distribution of a Controlled Substance (Methamphetamine), in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C). He entered a guilty plea to the charge on January 27, 2017. During the course of the underlying investigation, LI sold methamphetamine to a confidential informant on two separate occasions in March of 2016, and law enforcement was able to seize a total of 9.7 grams with a 98 percent purity level.
The investigation was conducted by the Drug Enforcement Administration, with the assistance of Task Force Officers from CNMI Customs and the CNMI Department of Public Safety. The case was prosecuted by Garth Backe, Assistant United States Attorney for the District of the NMI.
Jingbo Chen Sentenced to Jail and Ordered to Pay Fine in Airport Smuggling CaseRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that defendant JINGBO CHEN, also known as Jingbo San Nicolas or “Kim,” age 43, of Navy Hill, Saipan, was sentenced in District Court to a thirty (30) day term of imprisonment, to be followed by one year of supervised release, for Entering a Secure Area at an Airport by False Pretenses. The Court also ordered CHEN to pay a $2,000 fine and a mandatory $100 assessment fee.
On August 5, 2016, CHEN was charged by Indictment with Removing Goods from Customs Custody, in violation of 18 U.S.C. § 549, and Entering a Secure Area at an Airport by False Pretenses, in violation of 18 U.S.C. §§ 1036(a)(4) and (b)(1). She entered a guilty plea to an Information charging her with one count of Entering a Secure Area at an Airport by False Pretenses on October 6, 2016. The investigation revealed that CHEN, then an Airport Service Agent for Pacific Oriental Inc. Aviation (POI), went to the Saipan International Airport in her uniform although it was her day off, and made a number of false statements to co-workers prior to entering a secure area of the airport. After entering the secure area, CHEN received a bag from an arriving passenger and took it with her through an access door before it could be inspected by CNMI Customs.
The investigation was conducted by Department of Homeland Security, Homeland Security Investigations, with the assistance of Task Force Officers from CNMI Customs and the CNMI Department of Public Safety. The case was prosecuted by Garth Backe, Assistant United States Attorney for the District of the NMI.
Statement from Attorney General Jeff Sessions on Leaks Following the Manchester Terror AttackRead the Press Release
WASHINGTON – Attorney General Jeff Sessions today issued the following statement on the recent leaks following the Manchester terror attack:
“I share the president's deep concern and talked to Home Secretary Rudd yesterday about this matter. These leaks cannot be tolerated and we will make every effort to put an end to it. We have already initiated appropriate steps to address these rampant leaks that undermine our national security.”
Statement by Attorney General Jeff Sessions on the Fourth Circuit Court of Appeals DecisionRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the Fourth Circuit Court of Appeals Decision:
“President Trump’s executive order is well within his lawful authority to keep the Nation safe.”
“The Department of Justice strongly disagrees with the decision of the divided court, which blocks the President’s efforts to strengthen this country’s national security. As the dissenting judges explained, the executive order is a constitutional exercise of the President’s duty to protect our communities from terrorism. The President is not required to admit people from countries that sponsor or shelter terrorism, until he determines that they can be properly vetted and do not pose a security risk to the United States.”
“This Department of Justice will continue to vigorously defend the power and duty of the Executive Branch to protect the people of this country from danger, and will seek review of this case in the United States Supreme Court.”