District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Court Finds Wells Fargo Liable for Penalties for Engaging in Abusive Tax Shelter SchemeRead the Press Release
On Wednesday, a federal court in Minneapolis, Minnesota ruled that Wells Fargo is liable for a 20 percent negligence penalty in connection with $350 million of foreign tax credits that it claimed based on its participation in an abusive tax shelter known as Structured Trust Advantaged Repackaged Securities (STARS). This follows a Minnesota jury’s verdict on Nov. 17, 2016, that ruled Wells Fargo was not entitled to those foreign tax credits because the transaction lacked both economic substance and a non-tax business purpose.
After a three-week trial, the jury in this case was asked to determine whether Wells Fargo’s STARS transaction had economic substance, and the jury made some key factual findings. Wells Fargo contended that STARS was a single, integrated transaction that resulted in low-cost funding, but the jury found that in reality, the transaction consisted of two economically distinct and independent transactions: a loan and a trust. The jury found that the trust structure had no reasonable potential for pretax profit and that Wells Fargo entered into the trust structure solely for tax reasons. The jury also found that Wells Fargo entered into the loan solely for tax-related reasons.
In a prior decision in this case, the court noted that Barclays Bank PLC marketed the STARS transaction to American banks, which was designed to exploit differences between the tax laws in the United States and in the United Kingdom. Three other courts have rejected STARS tax shelters that Bank of New York, BB&T Bank and Santander Bank purchased. Santander Holdings USA, Inc. v. United States, 844 F.3d 15 (1st Cir. 2016), pet. for cert. filed, March 20, 2017 (No. 16‐1130); Bank of N.Y. Mellon Corp. v. Comm’r, 801 F.3d 104 (2d Cir. 2015), cert. denied, 136 S. Ct. 1377 (2016); Salem Fin., Inc. v. United States, 786 F.3d 932 (Fed. Cir. 2015), cert. denied, 136 S. Ct. 1366 (2016).
“The jury verdict is a resounding message to companies trying to exploit an abusive transaction that no matter how sophisticated the scheme, these sham tax shelters will not stand,” said Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “The Court’s opinion is equally clear that taxpayers who engage in such transactions can be subject to significant penalties.”
Acting Assistant Attorney General Hubbert thanked the agents and attorneys at the Internal Revenue Service who assisted the Justice Department, as well as Tax Division Chief Senior Litigation Counsel Dennis Donohue, Trial Attorneys William Farrior, Harris Phillips and Viki Economides, who litigated this case. Mr. Hubbert also thanked Paralegal Joanna Lara for her assistance on the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Observes Missing Children’s DayRead the Press Release
Deputy Attorney General Rod J. Rosenstein today recognized two law enforcement officers, two state-level task forces, and a private citizen for their efforts to recover missing and abducted children and investigate cases of sexual exploitation of children and child pornography.
The awards, coordinated by the Office of Juvenile Justice and Delinquency Prevention in the Office of Justice Programs, were presented during a formal ceremony at the Robert F. Kennedy Department of Justice Building.
“The people we recognize today remind us of our responsibility to protect all children from harm,” said Deputy Attorney General Rosenstein. “Their actions epitomize the values of courage, selflessness, and determination. The Department of Justice is proud to honor their inspirational achievements, and I am proud to stand with them.”
The ceremony included recognition of a student artist who best conveyed the theme “Bringing Our Missing Children Home.” Audrey Link, a fifth grader at Resurrection Catholic School in Lakeland, Fla., is this year’s national poster contest winner.
In addition to Link’s recognition, Rosenstein presented the following awards:
Attorney General’s Special Commendation: This commendation recognizes the extraordinary efforts of an Internet Crimes Against Children task force or affiliate agency for making significant investigative or program contributions. Recipients: The Alabama and Georgia Internet Crimes Against Children task forces launched a coordinated investigation into individuals suspected of possessing and distributing child pornography. The investigation spanned more than 70 law enforcement agencies across two states and resulted in 54 search warrants, 29 arrests and the seizure of 731 digital devices as evidence.
Missing Children’s Law Enforcement Award: This award recognizes the extraordinary efforts of a law enforcement officer who made a significant investigative or program contribution to the safety of children. Recipient: Special Agent Kathryn Gamble of the U.S. Department of Homeland Security, Homeland Security Investigations, Nogales, Ariz., initiated a global investigation targeting those who use the online chat service Kik to sexually exploit minors. Her efforts led to the execution of nearly 60 search and arrest warrants, identification of 30 child victims, the rescue of 22 child victims from ongoing sexual abuse, and the prosecution of five individuals to date.
Missing Children’s Child Protection Award: This award honors the extraordinary efforts of a law enforcement officer who made a significant investigative or program contribution to protect children from abuse or victimization. Recipient: Forensic Detective Eric Kjorness of the Idaho Internet Crimes Against Children task force, Moscow, Idaho, assisted in the investigation of 15 cases of possession or distribution of child pornography in 2016. Those 15 cases resulted in the examination of 40 electronic devices and the recovery of more than one million child pornography images and videos. Detective Kjorness also provides presentations to public schools, PTA groups, and civic groups to educate children, parents, and educators about child enticement via the Internet and online chat rooms.
Missing Children’s Citizen Award: This award honors the extraordinary effort of private citizens for their unselfish acts to safely recover missing or abducted children. Recipient: Springfield, Mo., bus driver T.J. Davis’s actions led to the recovery of a 13-year-old girl with autism who was reported missing in December 2016. While driving his route, Davis noticed a girl fitting the police description sitting in the lap of a man in a wheelchair. The man approached Davis’s bus, told him the girl needed help and left her with Davis, he then proceeded down the sidewalk. Recognizing him as a regular bus rider, Davis contacted his dispatcher and later described the man to authorities. Police arrested and charged the man with first-degree child kidnapping and enticement of a child.
President Ronald Reagan proclaimed May 25, 1983, the first National Missing Children’s Day in memory of Etan Patz, a six-year-old boy who disappeared from a New York City street corner on May 25, 1979. Missing Children’s Day honors his memory and the memories of children still missing. Although Patz’ killer was convicted this February for the 1979 murder, Etan Patz remains missing and his case active with the National Center for Missing and Exploited Children because his remains were never found.
Additional information is available online about National Missing Children’s Day.
The Office of Justice Programs, headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
United States Files Complaint Against Fiat Chrysler Automobiles for Alleged Clean Air Act ViolationsRead the Press Release
The Department of Justice, on behalf of the Environmental Protection Agency (EPA), today filed a civil complaint in federal court in Detroit, Michigan, against FCA US LLC, Fiat Chrysler Automobiles N.V., V.M. Motori S.p.A., and V.M. North America, Inc. (collectively referred to as FCA). The complaint alleges that nearly 104,000 light duty diesel vehicles containing 3.0 liter EcoDiesel engines are equipped with software functions that were not disclosed to regulators during the certification application process, and that the vehicles contain defeat devices. The complaint alleges that the undisclosed software functions cause the vehicles’ emission control systems to perform differently, and less effectively, during certain normal driving conditions than on federal emission tests, resulting in increased emissions of harmful air pollutants.
The Clean Air Act requires vehicle manufacturers to obtain a certificate of conformity before introducing a vehicle into commerce, by demonstrating to EPA that the vehicle will meet applicable federal emission standards to control air pollution. Manufacturers must disclose in their certification applications all auxiliary emission control devices (e.g. computer software that affects the performance of emission controls based upon operating parameters of the vehicle), justify the presence of any such devices, and explain why those that reduce the effectiveness of emission controls are not “defeat devices.” Motor vehicles equipped with defeat devices cannot be certified.
The complaint alleges that FCA equipped nearly 104,000 Ram 1500 and Jeep Grand Cherokee vehicles (Model Years 2014-2016) sold in the United States with at least eight software-based features that were not disclosed in FCA’s applications for certificates of conformity and that affect the vehicles’ emission control systems. The undisclosed software features lessen the effectiveness of the vehicles’ emissions control systems during certain normal driving situations. This results in cars that meet emission standards in the laboratory and during standard EPA testing, but during certain normal on-road driving emit oxides of nitrogen (NOx) that are much higher than the EPA-compliant level. The complaint alleges that each of these vehicles differs materially from the specifications provided to EPA in the certification applications, and thus the cars are uncertified, in violation of the Clean Air Act. These allegations are consistent with those set forth in notice of violation (“NOV”) that EPA issued to FCA US LLC and FCA NV on Jan. 12, 2017.
Following the issuance of the NOV, EPA continued its investigation into the operation of the undisclosed software-based features. Based upon this investigation, the complaint alleges that one or more of these undisclosed software features, alone or in combination with the others, renders inoperative, bypasses and/or defeats the vehicles’ emission control systems, which were installed to make the vehicles comply with Clean Air Act emission standards. In short, the complaint now alleges that the vehicles contain defeat devices.
NOx pollution contributes to the formation of harmful smog and soot, exposure to which is linked to a number of respiratory- and cardiovascular-related health effects as well as premature death. Children, older adults, people who are active outdoors (including outdoor workers), and people with heart or lung disease are particularly at risk for health effects related to smog or soot exposure. Nitrogen dioxide formed by NOx emissions can aggravate respiratory diseases, particularly asthma, and may also contribute to asthma development in children.
The civil complaint filed today seeks injunctive relief and the assessment of civil penalties. The United States also filed a notice that it will request to transfer its case and fully participate in the pretrial proceedings now initiated in the related multi-district litigation in the Northern District of California.
EPA and the California Air Resources Board are continuing in their discussions with FCA to bring the subject vehicles into compliance with the Clean Air Act and California law. The nature and timing of any resolution of this issue are uncertain.
Justice Department Settles U.S. Worker Discrimination Claims Against New Mexico FarmRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with Carrillo Farm Labor, LLC (Carrillo Farm), an onion farm in Deming, New Mexico. The settlement resolves the department’s investigation of complaints that Carrillo Farm discriminated against U.S. citizens due to a hiring preference for foreign visa workers.
After investigating complaints filed on behalf of two U.S. citizens, the Justice Department determined that Carrillo Farm denied U.S. citizens employment in 2016 because it wanted to hire temporary foreign workers under the H-2A visa program. Under the anti-discrimination provision of the Immigration and Nationality Act (INA), it is unlawful for employers to intentionally discriminate against U.S. citizens because of their citizenship status.
The settlement agreement requires Carrillo Farm to pay civil penalties to the United States, undergo department-provided training on the anti-discrimination provision of the INA, and comply with departmental monitoring and reporting requirements. In a separate agreement with workers represented by Texas RioGrande Legal Aid, Carrillo Farm agreed to pay a total of $44,000 in lost wages to affected U.S. workers.
“U.S. workers are the backbone of our economy, and the Justice Department will not tolerate employers discriminating against them because of their citizenship status,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “The department is wholeheartedly committed to challenging discriminatory hiring preferences that disfavor U.S. workers. We commend Texas RioGrande for bringing the matter to our attention and applaud Carrillo Farm for cooperating with the department to implement the corrective actions necessary to resolve this matter.”
This settlement is part of a Justice Department enforcement initiative dedicated to combatting employment discrimination against U.S. workers.
The Division’s Immigration and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
Department of Justice FY 2018 Budget RequestRead the Press Release
President Trump’s FY 2018 Budget proposal totals $27.7 billion for the Department of Justice to support federal law enforcement and criminal justice priorities of our state, local and tribal law enforcement partners. The request represents a comprehensive investment in the Justice mission and includes increases in funding for strengthening national security efforts, supporting law enforcement, and enforcing the nation’s immigration laws. The request represents a $1.1 billion decrease over the annualized FY 2017 continuing resolution (CR) level.
“The Department of Justice is dedicated to advancing the safety, the security, and the rights of all Americans – and the FY 2018 budget reflects the President’s commitment to keep America safe,” said Attorney General Jeff Sessions. “One of the Justice Department’s top priorities is to protect the United States from threats to our national security both foreign and domestic. The Department will enforce our laws and put criminals behind bars. We will fight the scourge of drug abuse. And we will support the courageous men and women of law enforcement, as they work day and night to protect us. The President’s budget allows the Department to continue to put America first.”
The Department of Justice’s areas of investment include:
- +$403 million for the Federal law enforcement operations – the FBI, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration – securing our nation and implementing a range of efforts to target violent criminals and to combat transnational organized crime groups, especially those trafficking drugs into the U.S.
- +$61 million for the U.S. Attorneys, including $26 million for 300 new Assistant U.S. Attorneys (AUSAs) nationwide: 230 AUSAs to prosecute violent criminals and ensure our neighborhoods are freed from their threat, and an additional 70 AUSAs to protect our borders and restore our sovereignty by prosecuting immigration law violations.
- +$14 million for the Department’s litigating components, including $3.7 million and 40 new positions for the Environment and Natural Resources Division and the Civil Division* and $6 million for the National Security Division.
- +$79 million for the Executive Office of Immigration Review (EOIR), including $75 million for 75 new Immigration Judges and associated positions, boosting the Department’s capacity for prompt, efficient, and just hearings for those accused of violations of immigration law.
- $2.0 billion in discretionary funding, plus an additional $3.1 billion in mandatory sources, totaling $5.1 billion for Federal grants to State, local, and tribal law enforcement and victims of crime, to ensure greater safety for law enforcement personnel and the people they serve. Critical programs aimed at protecting the life and safety of state and local law enforcement personnel, including the COPS Hiring Program, Preventing Violence Against Law Enforcement Officer Resilience and Survivability and the Bulletproof Vest Partnership, demonstrate our continuing commitment to supporting state, local, and tribal law enforcement.
For more information, view the FY 2018 Budget and Performance Summary at https://www.justice.gov/doj/fy-2018-budget-and-performance-summary.
National Security
National security remains the Department’s highest priority. The Department will always maintain its commitment and its responsibility to safeguard American citizens and defend the homeland, while maintaining American values. Threats are constantly evolving, requiring additional investments to mitigate those threats in innovative ways. Terrorist seek to sabotage critical infrastructure; organized crime syndicates seek to defraud banks and corporations; and spies seek to steal defense and intelligence secrets and intellectual property. Each threatens our nation’s economy and security.
The FY 2018 Budget will support the Department in responding to those evolving threats by dedicating $98.5 million to provide program enhancements for areas of 1) combatting domestic and foreign terrorism; 2) intelligence collection and analysis; 3) cybercrime; and 4) investigative and law enforcement technology.
For more information, view the National Security Fact Sheet at https://www.justice.gov/doj/fy-2018-budget-fact-sheets.
Combatting Violent Crime
Violent crime and drug use are becoming more and more commonplace within our communities. While today’s overall crime rates are near historic lows, recent trends indicate that those levels are at risk. Updated FBI statistics show that from 2014 to 2015, violent crime has increased more than 3 percent, which is the largest one-year increase in the last 24 years. The murder rate has increased 10 percent, the largest increase since 1968. Compounding this issue is the opioid and illegal drug epidemic. Heroin overdose deaths have more than tripled between 2010 and 2014 while illegal drugs flood across our borders into cities and towns bringing violence and tragedy with them. Protecting the people of this country from violent crime is a high calling of the men and women of the Department of Justice. Today, it has become more important than ever.
The FY 2018 budget requests $198.5 million in enhancements to reduce violent crime, combat the prescription drug and opioid epidemic, and target Transnational Criminal Organizations. These resources will enable the Department to target and dismantle the worst criminal organizations and drug traffickers that are bringing violence and drugs into our communities. The Department of Justice utilizes a comprehensive set of programs that leverage law enforcement operations, prosecutorial action, and support for state and local governments to combat the violent offenders in our communities.
For more information, view the Combatting Violent Crime Fact Sheet at https://www.justice.gov/doj/fy-2018-budget-fact-sheets.
Enforce Immigration Laws
The FY 2018 budget enhances border security and immigration enforcement and improves the Department’s ability to conduct more efficient and expedient immigration hearings to combat illegal entry and unlawful presence in the U.S. The Department requests increases of $144.9 million to enforce the President’s January 25 Executive Order, “Border Security and Immigration Enforcement Improvements” and keep pace with the Department of Homeland Security’s (DHS) increased immigration enforcement efforts.
For more information, view the Enforce Immigration Laws Fact Sheet at https://www.justice.gov/doj/fy-2018-budget-fact-sheets.
State, Local and Tribal Assistance
The Justice Department strongly supports its partnerships with state, local, and tribal entities. The FY 2018 Budget maintains its commitments to state, local, and tribal law enforcement partners without reducing the Department’s federal operational role. Simultaneously, efficiencies are identified to ensure that federal resources are being targeted to key Administration priorities, such as combating violent crime. The FY 2018 discretionary and mandatory request for state, local, and tribal law enforcement assistance is $5.1 billion, including specific discretionary enhancements of $107.0 million.
For more information, view the State, Local and Tribal Assistance Fact Sheet at https://www.justice.gov/doj/fy-2018-budget-fact-sheets.
*This release was revised to correct that the 40 new positions are for the Environment and Natural Resources Division and the Civil Division.
Readout of Meeting Between U.S. Attorney General Sessions and Qatari Attorney General Al MarriRead the Press Release
U.S. Attorney General Jeff Sessions met in Washington on May 19, 2017, with Dr. Ali Bin Fetais Al Marri, Attorney General of the State of Qatar. They discussed the close cooperation between the U.S. Department of Justice and the Qatari Office of the Attorney General and agreed to continue this cooperation, including on fighting terrorism and transnational crime. Attorney General Sessions and Dr. Al Marri also discussed anti-corruption issues.
Banamex USA Agrees to Forfeit $97 Million in Connection with Bank Secrecy Act ViolationsRead the Press Release
Today Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division announced that Banamex USA (BUSA), a financial institution based in Los Angeles, California, and a subsidiary of Citigroup Inc., agreed to forfeit $97.44 million and entered into a non-prosecution agreement (NPA) to resolve an investigation into BUSA’s Bank Secrecy Act (BSA) violations. In its agreement with the Justice Department, BUSA admitted to criminal violations by willfully failing to maintain an effective anti-money laundering (AML) compliance program with appropriate policies, procedures, and controls to guard against money laundering and willfully failing to file Suspicious Activity Reports (SARs).
According to admissions contained in the NPA and the accompanying statement of facts, from at least 2007 until at least 2012, BUSA processed more than 30 million remittance transactions to Mexico with a total value of more than $8.8 billion. During the same period, BUSA’s monitoring system issued more than 18,000 alerts involving more than $142 million in potentially suspicious remittance transactions. BUSA, however, conducted fewer than 10 investigations and filed only nine SARs in connection with these 18,000-plus alerts, filing no SARs on remittance transactions between 2010 and 2012.
BUSA also admitted that, for several years, BUSA recognized that it should have improved its monitoring of MSB remittances but failed to do so. BUSA employed a limited and manual transaction monitoring system, running only two scenarios to identify suspicious activity on the millions of remittance transactions it processed. These two scenarios produced paper reports that were intended to be reviewed by hand by the two employees assigned to perform the BSA functions of the bank, in addition to time-consuming non-BSA responsibilities. As BUSA began to expand its remittance processing business in 2006, BUSA understood the need to enhance its anti-money laundering efforts, yet failed to make necessary improvements to its transaction monitoring controls or to add staffing resources.
In July 2015, in a related matter, the Federal Deposit Insurance Corporation (FDIC) and California Department of Business Oversight ordered BUSA to pay a $140 million civil money penalty to resolve separate BSA regulatory investigations. Thus, the combined penalties paid by BUSA associated with the criminal and regulatory investigations of its BSA compliance violations amount to approximately $237.44 million. In March 2017, the FDIC also announced related enforcement actions against four former senior BUSA executives relating to BUSA’s violations of the BSA. As part of those actions, two executives were fined and prohibited from working at financial institutions in the future, one was fined, and one was prohibited from working at financial institutions in the future.
As explained in the Non-Prosecution Agreement, the Justice Department reached this resolution based on a number of factors. In particular, BUSA engaged in extensive remedial actions, including devoting significant resources to remediation of the BSA and AML deficiencies, exiting BUSA’s MSB business entirely, and ultimately ceasing all banking operations at BUSA. BUSA received partial credit for its cooperation with the Justice Department’s criminal investigation, including making factual presentations, voluntarily making foreign-based employees available for interviews in the United States, producing documents from foreign countries in ways that did not implicate foreign data privacy laws, and collecting, analyzing and organizing voluminous evidence and information for the Justice Department, including identifying and providing documents relating to certain individuals and topics. In addition, pursuant to the NPA, BUSA and Citigroup agreed to cooperate fully in this and any other Justice Department investigation relating to violations of the BSA and federal money laundering statutes and, for a period of one year, to report to the Justice Department any evidence or allegation of violations of the BSA or money laundering laws. Citigroup further agreed to report to the Justice Department regarding implementation of compliance measures to improve oversight of its subsidiaries’ BSA compliance.
This case was investigated by the Drug Enforcement Administration’s New England Field Division, the Internal Revenue Service’s Criminal Investigation Boston Field Office and the FDIC’s Office of Inspector General. Senior Trial Attorney Jennifer E. Ambuehl and Trial Attorney J. Randall Warden of the Criminal Division’s Money Laundering and Asset Recovery Section, Bank Integrity Unit, prosecuted the case. Assistant U.S. Attorneys David J. D’Addio and James E. Arnold of the U.S. Attorney’s Office for the District of Massachusetts provided significant assistance in this investigation.
The Justice Department wishes to thank the FDIC – both the San Francisco Office and FDIC Headquarters for its cooperation in this investigation.
Banamex USA NPAAttorney General Jeff Sessions Issues Memorandum on Implementation of Executive Order 13768, “Enhancing Public Safety in the Interior of the United States”Read the Press Release
Attorney General Jeff Sessions today issued the attached memo to all Department of Justice grant making components on the implementation of Executive Order 13768, “Enhancing Public Safety in the Interior of the United States.”
Memo on Implementation of Executive Order 13768Justice Department Announces the National Blue Alert NetworkRead the Press Release
The Justice Department, along with the Federal Communications Commission (FCC) and Department of Homeland Security (DHS), today announced the nationwide rollout of the National Blue Alert Network, including newly developed deliverables and federal interagency cooperation to enhance the safety and support of America’s law enforcement officers. Under implementation by the Office of Community Oriented Policing Services (COPS Office), the National Blue Alert Network promotes rapid dissemination of information to law enforcement, the media and the public about violent offenders who have killed, seriously injured or pose an imminent threat to law enforcement, or when an officer is missing in connection with official duties.
Named in honor of two fallen New York City Police Department (NYPD) officers who were ambushed in December 2014, the Rafael Ramos and Wenjian Liu National Blue Alert Act was signed into law in May 2015. The COPS Office was selected to implement the Act in September 2016 and has partnered with other federal agencies, including the FCC and the Federal Emergency Management Agency (FEMA), to establish enhanced communications systems, guidelines and resources.
“This network provides the means of quickly identifying, pursuing and capturing violent offenders who have hurt, killed or pose an imminent danger to law enforcement,” said Attorney General Jeff Sessions. “This National Police Week, we are proud to show our support for our nation’s brave police officers, and to work with our federal partners to keep them safe.”
“The men and women of law enforcement put their lives on the line to protect and serve the public,” said Acting Associate Attorney General Jesse Panuccio. “The Department of Justice is committed to supporting law enforcement, and the National Blue Alert Network will provide this country with the necessary framework for rapid response to help save lives and apprehend criminals who would attack those who bravely protect public safety.”
Blue Alerts are operationally similar to AMBER Alerts and can be broadcast on television, radio, and sent to cellphones and other wireless devices. Like AMBER Alerts, which are designed to quickly provide information about missing children to the public, Blue Alerts provide details about possible assailants, including physical descriptions, vehicle information and other identifying characteristics.
At present, there are 27 states with Blue Alert plans; however, this coordinated framework will help facilitate and streamline the adoption of new Blue Alert plans throughout the nation and help integrate existing plans. To learn more about the National Blue Alert Network, visit https://cops.usdoj.gov/bluealert.
The COPS Office is a federal agency responsible for advancing community policing nationwide and has a long history of supporting officer safety and wellness. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 129,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
INTERPOL Washington Helps Countries Build Information Sharing CapacityRead the Press Release
INTERPOL Washington photograph. INTERPOL member countries Singapore, Malaysia, and the United States celebrate the successful conclusion of capacity building training.During the first week of May 2017, Steve Somerville (left), INTERPOL Washington Development and Operations Team member, participated in a training event for INTERPOL member countries Singapore and Malaysia. The training, hosted by Singapore, gave INTERPOL Washington an opportunity to refine and troubleshoot the integration of I-24/7 services. The training was part of the Asian Regional Capacity Building Initiative designed to integrate the full suite of INTERPOL tools and services into each country’s existing national information technology infrastructure. Other participating countries are Indonesia, Thailand, and the Philippines.
The Asian Capacity Building Project initiative helps countries to:
Develop or enhance their ability to contribute stolen or lost travel document (SLTD) data to INTERPOL’s SLTD database;
Enhance border and immigration screening capabilities by integrating INTERPOL’s I-24/7 network; and
Use INTERPOL Washington expertise to help member countries develop the information technology infrastructure needed to connect to INTERPOL information.
This initiative helps member countries to meet their United Nations Security Council obligations to “… prevent the movement of terrorists and terrorist groups by effective border controls … and to “… improve international, regional, and sub-regional cooperation through increased sharing of information.”
INTERPOL Washington is committed to providing global technical assistance to increase the capacity and long-term sustainability to interdict the illicit international travel of Foreign Terrorist Fighters and other transnational criminals through the strategic application and utilization of INTERPOL information sharing tools.
A component of the U.S. Department of Justice, INTERPOL Washington—the U.S. National Central Bureau—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.
Attorney General Jeff Sessions Welcomes the Confirmation of Rachel Brand as Associate Attorney GeneralRead the Press Release
Attorney General Jeff Sessions today welcomed the confirmation of Rachel Brand to serve as the Department of Justice’s Associate Attorney General:
“I am pleased that the U.S. Senate has confirmed Rachel Brand to serve as Associate Attorney General, the third-ranking position in the Department of Justice. Rachel has proven herself to be a brilliant lawyer – graduating from Harvard Law School, clerking for Justice Anthony Kennedy and working in private practice, earning the respect of the entire legal community throughout her career. She is also a dedicated public servant who is strongly committed to upholding the rule of law and our Constitution, and she knows this Department well, having previously served with distinction as the Assistant Attorney General for the Office of Legal Policy. I know the entire Department of Justice joins me in congratulating her, and we look forward to her assuming her critical role in the Department. The Associate Attorney General has supervision over a number of key divisions: Antitrust Division, Civil Division, Civil Rights Division, Environment and Natural Resources Division, Tax Division, Office of Justice Programs, Community Oriented Policing Services (COPS), Community Relations Service, Office of Dispute Resolution, Office on Violence Against Women, Office of Information Policy, Executive Office for U.S. Trustees, Foreign Claims Settlement Commission, and the Servicemembers and Veterans Initiative.”
Justice Department Settles Immigration-Related Discrimination Lawsuit Against Pasco, Washington Fruit and Vegetable ProcessorRead the Press Release
The Justice Department announced today that it reached a settlement agreement with Washington Potato Company and Pasco Processing, LLC, which operate a fruit and vegetable processing facility located in Pasco, Washington. The agreement resolves a discrimination lawsuit the Justice Department filed against the companies on Nov. 14, 2016.
The department’s lawsuit alleged that from at least Nov. 1, 2013, until at least Oct. 16, 2016, the companies routinely requested that lawful permanent residents hired at Pasco Processing produce a specific document – a Permanent Resident Card – to prove their work authorization, while not requesting a specific document from U.S. citizens. The department’s complaint alleged that Washington Potato directed and controlled Pasco Processing’s hiring practices, including the discriminatory documentary practices at issue. The antidiscrimination provision of the Immigration and Nationality Act (INA) prohibits such unfair documentary requests when based on citizenship status or national origin.
Under the agreement, Washington Potato Company and Pasco Processing are required to pay civil penalties of $225,750, post notices informing workers about their rights under the INA’s antidiscrimination provision, train their human resources personnel on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring and reporting requirements.
“The Justice Department is committed to removing illegal barriers to employment based on citizenship, immigration status, or national origin,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “We look forward to working with Pasco Processing and Washington Potato Company to fulfill the terms of this agreement.”
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
Justice Department Obtains $37,000 Verdict in Disability Discrimination Case Against Montana LandlordRead the Press Release
A federal jury in Butte, Montana today returned a $37,343 verdict against a Bozeman, Montana landlord for charging a tenant with physical and psychiatric disabilities $1,000 to have a service animal, the Justice Department announced today.
The lawsuit, filed in U.S. District Court in Butte, alleged that Jaclyn Katz, the owner and manager of rental properties in Bozeman, discriminated against Kristen Newman, a tenant with physical and psychiatric disabilities, by charging her a $1,000 deposit as a condition for allowing her to keep her service dog, Riley. At trial, Newman, her treating therapist and an independent expert testified that Riley assisted Newman in living with the symptoms of her disabilities, including providing emotional support, helping to predict migraines, and reducing suicidal thoughts. Newman also testified that she repeatedly informed Katz that charging a deposit for a service animal was illegal and that Newman understood that she would have to pay for any actual damage caused by her service dog. Nevertheless, Katz continued to levy this charge and, at one point, even threatened to terminate Newman’s tenancy. The case arose out of a complaint filed by Newman with the U.S. Department of Housing and Urban Development.
The verdict includes $11,043 in compensatory damages for Newman, $20,000 in punitive damages for Newman, and $6,300 for Montana Fair Housing, Inc., which assisted Newman with her fair housing complaint.
“Persons with disabilities have the right to live in and enjoy their communities, just as all families do throughout our nation,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “We commend the jury for recognizing that the Fair Housing Act prohibits landlords from discriminating against persons with disabilities, and we will continue to work to eliminate discriminatory barriers in housing for persons with disabilities.”
“Many people with disabilities require the assistance of an animal to carry out major daily activities,” said General Deputy Assistant Secretary Bryan Greene of the U.S. Department of Housing and Urban Development’s Fair Housing and Equal Opportunity. “Complaints alleging disability discrimination now account for the majority of the complaints HUD receives. HUD will continue to enforce the law and educate the public on the rights of people with disabilities in housing.”
The federal 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].
Appointment of Special CounselRead the Press Release
Deputy Attorney General Rod J. Rosenstein today announced the appointment of former Department of Justice official and FBI Director Robert S. Mueller III to serve as Special Counsel to oversee the previously-confirmed FBI investigation of Russian government efforts to influence the 2016 presidential election and related matters.
“In my capacity as acting Attorney General, I determined that it is in the public interest for me to exercise my authority and appoint a Special Counsel to assume responsibility for this matter,” said Deputy Attorney General Rosenstein. “My decision is not a finding that crimes have been committed or that any prosecution is warranted. I have made no such determination. What I have determined is that based upon the unique circumstances, the public interest requires me to place this investigation under the authority of a person who exercises a degree of independence from the normal chain of command.”
Deputy Attorney General Rosenstein added, “Each year, the career professionals of the U.S. Department of Justice conduct tens of thousands of criminal investigations and handle countless other matters without regard to partisan political considerations. I have great confidence in the independence and integrity of our people and our processes. Considering the unique circumstances of this matter, however, I determined that a Special Counsel is necessary in order for the American people to have full confidence in the outcome. Our nation is grounded on the rule of law, and the public must be assured that government officials administer the law fairly. Special Counsel Mueller will have all appropriate resources to conduct a thorough and complete investigation, and I am confident that he will follow the facts, apply the law and reach a just result.”
Special Counsel Mueller has agreed to resign from his private law firm in order to avoid any conflicts of interest with firm clients or attorneys.
A copy of the order is attached.
Court Orders Texas Businesses and Their Owners to Timely Pay Employment TaxesRead the Press Release
A federal court in McAllen, Texas ordered Idalia Padron and Nino’s Home Care Inc. to timely file the business’s federal employment and unemployment tax returns as they become due and pay in full the reported amounts due. The court also entered a money judgment against Nino’s Home Care for more than $2.7 million, which represents its past unpaid employment taxes.
The complaint filed by the government against Padron and Nino’s Home Care alleged that Padron of Edinburg, Texas, operates Nino’s Home Care, a home health care service provider located at 121 W. Samano Street in Edinburg, and that Nino’s Home Care failed to pay its employment taxes for 20 tax quarters between 2005 and 2016. The complaint also alleged that Padron paid herself more than $100,000 in salary in 2015, a year in which Nino’s Home Care failed to pay over to the Internal Revenue Service (IRS) more than $850,000 in employment taxes.
Employers like Nino’s Home Care have specific responsibilities regarding employment taxes. When a business pays its employees, it does not pay them directly all the money they earn. Every business with employees has a legal responsibility to withhold from employees’ paychecks, and pay over to the U.S. Treasury, income taxes and the employees’ share of social security and Medicare taxes. Businesses that fail to collect these employment taxes or pay them over to the Treasury are subject to a number of potential enforcement actions.
Civil injunctions like the one entered by the court against Nino’s Home Care are one example of employment tax enforcement. An injunction order requires the employer and its principal officers to timely deposit and pay employment taxes to the U.S. Treasury. These court orders also impose various other requirements and prohibitions, including the obligation to provide current notice of each deposit to the IRS, as well as restrictions on opening and operating new businesses and transferring or dissipating assets.
For example, a federal court in McAllen, Texas also barred Jorge Gallegos and Con Brazos Abiertos LLC from failing to pay the business’s employment and unemployment taxes, in addition to requiring Gallegos to notify the IRS of any new company he may come to own, manage, or work for in the next five years. The government’s complaint alleged that Con Brazos Abiertos is a home health care service provider located at 505 S. Texas Blvd. in Weslaco, Texas. The government alleged that Gallegos of Mercedes, Texas, is the president and chief of Con Brazos Abiertos, and the business failed to pay its employment taxes for numerous quarters between 2011 and 2016. In addition to enjoining Gallegos and Con Brazos Abiertos, the court entered a judgment of more than $1 million against Con Brazos Abiertos for its unpaid employment and unemployment taxes.
If an employer violates a civil injunction, the Justice Department’s Tax Division will seek to have the employer and responsible individuals held in contempt, and request appropriate sanctions, including incarceration, to bring the business into compliance with the court’s order. Where appropriate, the Department will also seek compensation, from the principal officers or the business, for the damage the contempt has caused. In addition to this relief, courts have ordered businesses to close their doors for continued failure to meet their employment tax obligations. For example, a federal court in Washington held two individuals in contempt of court for a consistent pattern of failing to meet the businesses’ employment tax obligations. The court later ordered the two to close their dental care businesses, cease operating as employers, and barred them from opening any new businesses where the two would serve as employers by June 8.
The Tax Division works with its partners in the IRS to force employers who are cheating to follow the law and collect what is owed. Since 2003, the Tax Division has obtained more than 100 permanent injunctions against employers and tens of millions of dollars in money judgments. For more information about civil and criminal employment tax enforcement efforts, visit the Tax Division’s website.
Justice Department Announces Investigation of Possible Acquisition of Chicago Sun-Times by Owner of Chicago TribuneRead the Press Release
The Antitrust Division of the Department of Justice announced today that it is conducting an investigation into the possible acquisition of the Chicago Sun-Times by tronc, Inc., the owner of the Chicago Tribune.
The owner of the Chicago Sun-Times, Wrapports LLC, disclosed today that (i) the Chicago Sun-Times is seeking a buyer that will continue to publish the newspaper; (ii) if no other viable buyer expressing substantial interest in purchasing the Chicago Sun-Times comes forward within 15 calendar days of publication in the Chicago Sun-Times of an advertisement inviting expressions of interest, the Chicago Sun-Times will be sold to tronc, Inc.; and (iii) within the 15 calendar day period, prospective buyers must begin due diligence and indicate an expression of interest, including a price range for the Chicago Sun-Times, and demonstrate the financial ability to operate the paper. If another viable buyer comes forward within 15 calendar days, then the interested buyer will be provided a reasonable opportunity to conduct additional due diligence and negotiate the purchase of the Chicago Sun-Times.
The Antitrust Division is the agency responsible for investigating mergers involving newspapers. The Antitrust Division will closely monitor the sale process for the Chicago Sun-Times, including whether any other viable buyer expresses interest. In addition to contacting Wrapports, interested prospective buyers are invited to contact as soon as possible the Litigation III Section of the Antitrust Division directly at (202) 305-8376.
tronc is a Delaware corporation headquartered in Chicago. It publishes major daily newspapers across California, Illinois, Florida, Maryland, Connecticut, Virginia and Pennsylvania. Wrapports is a privately-held corporation based in Chicago.
George M. Bamba, II 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, announced that defendant GEORGE M. BAMBA, II, age 38 from Agana Heights, was sentenced in District Court to a 37-month term of imprisonment, to be followed by five years of supervised release. The Court also ordered BAMBA to pay a mandatory $100 assessment fee. In addition, defendants who are convicted of a federal drug offense may no longer qualify for certain federal benefits.
November 5, 2015, BAMBA waived Indictment and entered a guilty plea to an Information charging him with Conspiracy to Distribute 50 Grams or More of Methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)(viii). The investigation revealed that BAMBA, and other individuals, agreed to use the mail system to distribute large quantities of methamphetamine on Guam. October 5, 2015, law enforcement agents seized a U.S. Postal Service package that concealed over 95 grams of methamphetamine that was 100% pure. BAMBA arranged to have the drugs sent to him in Guam from Las Vegas, Nevada.
The U.S. Postal Service and the Drug Enforcement Administration conducted the investigation, with assistance by the Guam Superior Court Probation Office, Guam Customs and Quarantine Agency, and the Guam Police Department. The case was prosecuted by Clyde Lemons, Jr., and Assistant United States Attorney for the District of Guam.
International Competition Network Adopts Recommended Practices on Merger Notification and Review and New Work on a Framework for Analyzing Exclusionary Unilateral ConductRead the Press Release
At its annual meeting, the International Competition Network (ICN) adopted new recommended practices for merger review, addressing notification thresholds, remedies, and efficiencies; a framework for analyzing unilateral conduct; guiding principles for market studies; and a report on setting cartel fines, the Department of Justice announced today.
The ICN held its 16th annual conference, hosted by the Portuguese Competition Authority, on May 10-12, 2017. More than 500 delegates from over 80 jurisdictions participated, including competition experts from international organizations and the legal, business, academic, and consumer communities. Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division and Acting FTC Chairman Maureen Ohlhausen led the U.S. delegation. The conference showcased the achievements of the ICN working groups on unilateral conduct, mergers, competition advocacy, agency effectiveness and cartels. The conference also discussed current competition issues and the future direction of the network.
“The ICN plays a central role in promoting collaboration among antitrust authorities from around the world,” said Acting Assistant Attorney General Finch. “The Antitrust Division is committed to participating fully in efforts by ICN to promote international convergence in antitrust enforcement. The annual conference is an excellent opportunity to explore with our international colleagues ways in which we can pursue our shared enforcement goals.”
Acting Assistant Attorney General Finch spoke on a panel discussing cartel leniency and challenges for the future. The panel was part of the Cartel Working Group’s continuing focus on legal framework issues and enforcement techniques. The Cartel Working Group also presented an updated report on how cartel fines are determined, highlighting common themes and methodologies across jurisdictions.
The Department of Justice co-chairs the Unilateral Conduct Working Group, which concluded a two-year project to produce a workbook chapter on the Analytical Framework for Evaluating Unilateral Conduct. The project explores the issues an agency faces in formulating its unilateral conduct enforcement policies, specifically focusing on two major questions in unilateral conduct enforcement: what is dominance and what makes conduct exclusionary.
The Agency Effectiveness Working Group made two additions to its Agency Practice Manual that addressed effective operations of a competition agency: a report on competition agencies’ use of social media and a report on agency staff training. The Social Media Report describes competition agencies’ external social media communication usage, strategies, and lessons learned, while the Staff Training Report focuses on training tools used by member agencies. It also presented three new video training modules as part of its on-line interactive educational center for competition authorities from around the world.
“Through their participation in the conference, the world’s competition agencies demonstrate a shared commitment to strive toward convergence on sound competition analysis and fair process in antitrust investigations,” said FTC Acting Chairman Ohlhausen. “The ICN serves as an important forum to further advance international coordination and cooperation of antitrust enforcement based on sound economics, procedural fairness, transparency and non-discriminatory treatment of parties.”
Acting Chairman Ohlhausen helped lead the conference’s discussion of the analysis of non-price effects in merger analysis. The panel explored the potential effects of mergers on non-price dimensions such as quality, innovation, product variety, and service. The FTC co-chairs the ICN’s Merger Working Group, which promotes convergence toward best practices in merger review process and analysis and seeks to reduce the public and private costs of multijurisdictional merger reviews.
This year, the Merger Working Group presented four new Recommended Practices on 1) the types of transactions subject to merger review, 2) merger notification thresholds, 3) merger remedies, and 4) the analysis of merger efficiencies. These recommendations join two sets of Merger Recommended Practices that address a range of notification, review, and analysis issues. Recommended Practices are the ICN’s most prominent and influential work product, used by agencies around the world to benchmark their own practices and inspire convergence.
The Advocacy Working Group provides guidance and facilitates experience sharing to improve the effectiveness of ICN members’ competition advocacy. This year, the group created new Market Studies Guiding Principles, a compilation of effective practices for agencies to consider when undertaking studies to understand the state of competition in specific sectors. It also expanded its “Explaining the Benefits of Competition” resources to include tips, messages, and case studies on communicating with the public.
Created in October 2001 to increase understanding of competition policy and promote convergence toward sound antitrust enforcement around the world, the ICN, founded by 15 members including the Department of Justice’s Antitrust Division and the FTC, has grown to 135 member agencies from 122 jurisdictions, supported by a wide network of non-government advisors from around the world.
Graduate Student Sentenced for Attempting to Entice MinorsRead the Press Release
A Rome, New York, man was sentenced today to 120 months in prison for attempted coercion and enticement of a minor to engage in unlawful sexual activity.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente of the Eastern District of Virginia; and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County, Virginia, Police Department made the announcement.
Julio Perez-Torres, 26, was sentenced today by U.S. District Judge Liam O’Grady of the Eastern District of Virginia who also ordered him to serve 20 years of supervised release. Perez-Torres previously pleaded guilty on Jan. 13, 2017.
According to admissions made in connection with his plea agreement, in early February 2016, Perez-Torres, a master’s degree candidate at American University, posted an online advertisement expressing interest in sex with children. When an undercover Fairfax County police officer replied to the ad, portraying himself as the father of two children, ages five and seven, Perez-Torres discussed performing graphic sexual acts on the children. On Feb. 18, 2016, after weeks of corresponding with the undercover officer via emails, text messages and telephone calls containing sexually explicit content, Perez-Torres traveled across state lines to meet the undercover officer with the intent to engage in sexual acts with the children. Perez-Torres was arrested at that time.
Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Kellen Dwyer of the Eastern District of Virginia prosecuted the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Administrative Law Judge Pleads Guilty for Role in $550 Million Social Security Disability Fraud SchemeRead the Press Release
A former administrative law judge for the Social Security Administration (SSA) pleaded guilty in federal court today for his role in a scheme to fraudulently obtain more than $550 million in federal disability payments from the SSA for thousands of claimants.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky, Field Division; Special Agent in Charge Tracey D. Montaño of the Internal Revenue Service-Criminal Investigation (IRS-CI) Nashville, Tennessee, Field Office; and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of the Inspector General’s (HHS-OIG) Atlanta Regional Office made the announcement.
David Black Daugherty, 81, of Myrtle Beach, South Carolina, pleaded guilty before U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky to an information charging him with two counts of receiving illegal gratuities. Sentencing is set for Aug. 25, 2017.
Daugherty was an administrative law judge at the Social Security hearing office in Huntington, West Virginia (Huntington Hearing Office) for more than 20 years, where his primary responsibility was to adjudicate disability claims on behalf of the SSA. According to admissions made as part of his guilty plea, from November 2004 to April 2011, Daugherty accepted more than $609,000 in cash payments, total, in more than approximately 3,100 cases from Social Security disability lawyer, Eric Christopher Conn, of Pikeville, Kentucky, for awarding disability benefits to claimants represented by Conn. Furthermore, in an effort to conceal the source of these cash payments, Daugherty divided cash deposits into various bank branches and accounts, he admitted.
Daugherty admitted that he sought out Conn’s cases pending with the Huntington Hearing Office, contacted Conn and told him what type of medical evidence to submit in support of disability findings and then awarded benefits to claimants represented by Conn without holding hearings. As a result, Conn ultimately received at least $7.1 million in representative fees from the SSA, and Daugherty further obligated the SSA to pay more than $550 million in lifetime benefits to claimants, according to the plea.
Daugherty was indicted on April 1, 2016, along with Conn and Alfred Bradley Adkins, a clinical psychologist of Pikeville. They were charged with conspiracy, fraud, false statements, money laundering and other related offenses in connection with the scheme. Conn pleaded guilty to the fraud scheme earlier this year. As to Adkins, who is awaiting trial, the indictment is merely an allegation as all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The SSA-OIG, FBI, IRS-CI and HHS-OIG investigated the case. Trial Attorneys Dustin M. Davis of the Criminal Division’s Fraud Section and 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.
Federal Court Shuts Down New Orleans-Area Tax Return PreparerRead the Press Release
A federal court in New Orleans, Louisiana has permanently barred Tiga Bryant from preparing federal tax returns for others, the Justice Department announced today. In its complaint, the government alleged that Tiga Bryant of New Orleans, Louisiana, sometimes doing business as “Denson’s Fast Tax Services,” fraudulently reduced her customers’ tax liabilities by improperly claiming bogus deductions and fuel tax credits. Bryant agreed to the civil injunction order entered against her, which requires her to turn over to the United States a list of all persons for whom she prepared federal tax returns since 2014. The court also authorized the United States to monitor Bryant’s compliance with the terms of the injunction.
The government’s complaint alleged that Bryant claimed false employee business expense deductions that improperly reduced her customer’s taxable income. In more than one example, the complaint alleged that Bryant claimed a customer incurred employee business expenses totaling slightly less than half the wages the customer earned in that particular year. According to the complaint, Bryant even claimed that one of her customers had incurred employee business expenses totaling more than the wages the employee earned in that year. In each of these instances, the customers did not actually incur the expenses Bryant reported on the return, according to the complaint.
In addition to claiming fraudulent deductions for her customers, Bryant also claimed bogus fuel tax credits, according to the complaint. Fraud involving the fuel tax credit is one of the IRS’s Dirty Dozen Tax Scams for 2017. The fuel tax credit is generally limited to off-highway business use, and consequently, not available to most taxpayers. For example, Bryant reported on one of her customer’s returns that the customer used 2500 gallons of gasoline for off-highway business use when the customer only used her vehicle for driving between home, work, school, and child responsibilities, according to the complaint.
According to the complaint, the Internal Revenue Service (IRS) audited 197 returns prepared by Bryant and determined that Bryant claimed credits and/or deductions her customers were not entitled to take on 96 percent (189) of these returns and understated their tax liabilities by more than $800,000.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Attorney General Sessions Issues Charging and Sentencing Guidelines to Federal ProsecutorsRead the Press Release
Attorney General Jeff Sessions today issued the attached memorandum establishing charging and sentencing policies for the Department of Justice.
This policy was formulated after extensive consultation with Assistant U.S. Attorneys at both the trial and appellate level, as well as U.S. Attorneys and Main Justice Attorneys. It ensures that the Department enforces the law fairly and consistently, advances public safety and promotes respect for our legal system.
Attorney General Sessions will issue further remarks on the new policy later this morning.
Memorandum on Department Charging and Sentencing PolicyReadout of Meeting Between U.S. Attorney General Jeff Sessions and Israeli Justice Minister ShakedRead the Press Release
The Attorney General today had a constructive meeting with Israeli Justice Minister Shaked. The two discussed the strong bond between the United States and Israel and focused on how they can cooperate in the areas of international criminal justice, terrorism and cyber threats. The Attorney General looks forward to continuing a strong, collaborative relationship with Israel’s Ministry of Justice and looks forward to future discussions.
Miguel Camacho 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, announced that defendant MIGUEL CAMACHO, age 42, from Tumon, was sentenced in District Court on May 9, 2017, to a 63-month term of imprisonment, to be followed by three years of supervised release, and 100 hours of community service, for Conspiracy to Distribute Methamphetamine. The Court also ordered CAMACHO 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 September 28, 2015, CAMACHO waived Indictment and entered a guilty plea to an Information charging him with Conspiracy to Distribute Methamphetamine in violation of 21 U.S.C. §§ 846, 841(a) and (b)(1)(C). The investigation revealed that CAMACHO, and other individuals, used FedEx to distribute large quantities of methamphetamine to Guam from the Philippines. Law enforcement seized over 964 grams of methamphetamine, with a 97.1 percent purity level.
The investigation was conducted by the Department of Homeland Security, Homeland Security Investigations, Alcohol, Tobacco, Firearms and Explosives, Guam Customs and Quarantine Agency, Drug Enforcement Administration and the Guam Police Department. The case was prosecuted by Clyde Lemons, Jr., Assistant United States Attorney for the District of Guam.
Justice Department Seeks to Shut Down South Florida Tax Return PreparersRead the Press Release
Three related return preparers in South Florida prepare false tax returns for their customers, according to a new civil lawsuit filed by the Justice Department. The suit filed in the Southern District of Florida asks the court to permanently bar Fred Pickett Jr. and his children, Jalisa Steele and Fred Pickett III, from owning, operating, or franchising a tax return preparation business and preparing tax returns for others. According to the complaint, Pickett Jr., Steele, and Pickett III, all of Belle Glade, Florida, operate a tax return preparation business with several stores in South Florida under the names of Five Star Tax Services, Five Star Financial, and Millenium [sic] Tax Professionals. According to the complaint, the business has prepared over 8,000 returns since 2011 from the store locations in Belle Glade, Clewiston, Moore Haven, and La Belle, Florida.
The complaint alleges that by repeatedly underreporting tax liabilities and claiming bogus refunds on behalf of their customers, the defendants have caused the United States to lose substantial tax revenue. According to the complaint, the defendants misreport income, deductions, and credits on their customers’ tax returns by:
-
Fabricating businesses and business-related profits or losses;
-
Manipulating, maximizing, or falsely claiming the Earned Income Tax Credit (EITC);
-
Claiming false education credits;
-
Claiming spurious fuel tax credits;
-
Fabricating retirement account contributions and deductions; and
-
Failing to provide customers with complete copies of their tax returns.
One of the alleged examples of such conduct involves a married couple whose tax returns were prepared by Pickett Jr. According to the complaint, unbeknownst to the couple, Pickett Jr. reported a fake equipment business on their joint 2013 and 2014 tax returns, with combined losses that exceeded $90,000. These bogus losses, along with other retirement account-related fabrications, caused the couple to receive significantly inflated refunds each year, according to the complaint.
The complaint further alleges that the Internal Revenue Service (IRS) audited 55 tax returns prepared by the defendants. The IRS determined that each of these 55 tax returns resulted in a deficiency with an average tax deficiency of $5,891 per return and a total revenue loss of $323,986, according to the complaint.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
-
Joseph A. Jones Sentenced for Felon in Possession of FirearmRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant JOSEPH ANTHONY JONES, age 46, from Ordot, was sentenced in District Court to an eight-month term of imprisonment, to be followed by three years of supervised release, and 50 hours of community service for Felon in Possession of a Firearm. The Court also ordered JONES to pay a mandatory $100 assessment fee.
On March 30, 2016, JONES was charged by Indictment with Felon in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(1), and Drug User in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(3). On April 27, 2016, JONES entered a guilty plea to the Felon in Possession of a Firearm charge. During December 2015, GPD and ATF executed a search warrant at the defendant’s residence in Ordot. Law enforcement seized a Ruger Mini-14, .223 caliber rifle, from inside the residence. Jones had previously been convicted of two felony drug charges in the Superior Court of Guam.
Acting U.S. Attorney Anderson stated, “Armed felons and unlawful drug users pose a grave danger to our communities. Federal law prohibits the possession of firearms and ammunition by such individuals. The Department of Justice will continue to focus resources on these prosecutions in an effort to prevent violent crime.”
The investigation was conducted by the ATF and the Guam Police Department, Special Investigation Section. The case was prosecuted by Frederick A. Black, Assistant United States Attorney for the District of Guam.
Jerry Francisco 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, announced that defendant JERRY FRANCISCO, age 42, from Tamuning, was sentenced in District Court to a six month term of imprisonment, to be followed by six months of home detention, two years of supervised release, and 50 hours of community service, for Conspiracy to Possess with Intent to Distribute Methamphetamine. The Court also ordered FRANCISCO 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 March 23, 2016, FRANCISCO was charged by Indictment with Conspiracy to Possess with Intent to Distribute Methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(C). He entered a guilty plea to the charge on March 31, 2016. The investigation revealed that FRANCISCO, and other individuals, in July of 2012 agreed to use the mail system to distribute methamphetamine on Guam. Law enforcement seized over 6.76 grams of methamphetamine, with a 99 percent purity level.
The investigation was conducted by the U.S. Postal Service and the Drug Enforcement Administration. The case was prosecuted by Frederick A. Black, Assistant United States Attorney for the District of Guam.
Max Myong Ahn Sentenced for Selling SpiceRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant MAX MYONG AHN, age 60, from Dededo, Guam, was sentenced in District Court on May 8, 2017, to five years probation to include one year home detention, restitution in the amount of $583.00 to the Department of Public Health – Medicaid Division and a $7,500 fine, for Unlawful Use of the Mail to Facilitate the Distribution of Controlled Substance Analogues. The Court also ordered AHN to pay a mandatory $100 assessment fee.
The Federal Analogue Act, 21 U.S.C. § 813, is a section of the United States Controlled Substances Act passed in 1986. The law allows any chemical "substantially similar" to a controlled substance listed in Schedule I or II to be treated as if it were also listed in those schedules, but only if intended for human consumption. These similar substances are often called designer drugs, spice or bath salts.
On November 3, 2016, AHN entered a guilty plea to an Information charging him with Unlawful Use of the Mail to Facilitate the Distribution of Controlled Substance Analogues, in violation of 18 U.S.C. §§ 2 and 1952(a)(3). Undercover investigations at Gallop USA and Max’s Smoke Shop (Max’s), both owned by AHN, revealed that AHN sold Spice to customers and friends. Agents seized 25 bags of spice and 50 plastic jars containing spice residue from Max’s. Agents also seized 792.8 grams of spice and $129,842 in United States currency from Gallop.
Acting U.S. Attorney Anderson stated, “The Drug Enforcement Administration actively works to properly control new generations of designer drugs. These substances are a significant threat to the health of users both domestically and internationally. The Department of Justice and our local and federal partners remain committed to early and active enforcement of drug laws to protect our communities.”
The investigation was conducted by the U.S. Postal Service and the Drug Enforcement Administration, Guam Customs & Quarantine Agency, Guam Police Department, Alcohol, Tobacco, & Firearms, Superior Court of Guam Probation Office, and the Naval Criminal Investigative Service. The case was prosecuted by Clyde Lemons, Jr., Assistant United States Attorney for the District of Guam.
Justice Department Settles Immigration-Related Discrimination Claim Against Rhode Island-Based Staffing AgencyRead the Press Release
The Justice Department reached a settlement agreement today with Provisional Staffing Solutions (Provisional), a temporary staffing agency located in Cranston, Rhode Island. The agreement resolves the department’s investigation into whether Provisional discriminated against non-U.S. citizens when checking their work authorization documents, in violation of the Immigration and Nationality Act (INA).
The department’s investigation concluded that Provisional routinely requested that non-U.S. citizens present specific identity documents to prove their work authorization, such as a Permanent Resident Card (PRC), while not requesting a specific identity document from U.S. citizens. Lawful permanents residents and other work-authorized non-U.S. citizens often have the same identity and work authorization documents available to them as U.S. citizens, and may choose from among the acceptable documents to prove they are authorized to work. The antidiscrimination provision of the INA prohibits employers from subjecting employees to unnecessary documentary demands based on the employees’ citizenship or national origin.
Under the settlement, Provisional must pay a civil penalty of $16,290 to the United States, post notices informing workers about their rights under the INA’s antidiscrimination provision, train their human resources personnel and be subject to departmental monitoring and reporting requirements.
"The Justice Department cautions employers not to erect discriminatory barriers to employment," said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. "Companies large and small must ensure that their Form I-9 practices comply with federal law. We appreciate Provisional’s cooperation with the Department to address this issue."
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
Provisional Staffing Solutions Settlement AgreementFormer SEC Employee Pleads Guilty to Making False Statements Designed to Conceal Prohibited TradingRead the Press Release
A former employee of the Securities and Exchange Commission (SEC) pleaded guilty today in federal court in Washington, D.C., to making false statements in government filings in order to conceal his prohibited trading of options and other securities, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Inspector General Carl W. Hoecker of the SEC.
David Humphrey, 60, of Vail, Arizona, pleaded guilty before U.S. District Judge Rosemary Collyer of the District of Columbia in connection with multiple false statements he made on annual Office of Government Ethics Confidential Financial Disclosure Reports (Form 450s), as well as on internal SEC certifications of holdings. Sentencing is set for Aug. 8, 2017.
According to the plea agreement, Humphrey worked for the SEC in Washington, D.C., for 16 years and was a branch chief in the Division of Corporation Finance from 2004 to 2014. Applicable SEC employee ethics regulations prohibited Humphrey from trading options where the underlying interest was a security or group of securities and from purchasing or holding securities in entities the SEC directly regulates, such as financial institutions. In addition, within his role at the SEC, Humphrey was required to pre-clear securities transactions, make certifications that his holdings were in compliance with these regulations, and annually file Form 450s to disclose assets held for investments with a value greater than $1,000 or that produced more than $200 in income at the end of the reporting period.
Humphrey admitted that despite knowing the restrictions on SEC employees’ trading of options, he devised and executed an “options trading strategy” under which he traded options over 100 times from his SEC computer at various times between 2001 and 2014. During this period, in order to conceal his options trading, Humphrey admitted that he signed and submitted multiple Form 450s that failed to disclose reportable assets, including prohibited options. For example, in 2013, Humphrey submitted a false Form 450 that failed to report the sale of reportable options in 2012, and in 2014, he submitted a separate Form 450 that failed to report reportable options sales and investments holdings in 2013. Furthermore, in 2013 and 2014, Humphrey falsely certified that he was in compliance with all applicable SEC regulations relating to prohibited holdings, when in fact Humphrey had traded options in violation of those regulations, he admitted.
The SEC Office of Inspector General investigated the case. Trial Attorney Gary A. Winters of the Criminal Division’s Fraud Section is prosecuting the case.
El Departamento de Justicia Resuelve una Denuncia de Discriminación Contra una Agencia de Contratación con Sede en Rhode IslandRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia llegó a un acuerdo hoy con Provisional Staffing Solutions («Provisional»), una agencia de contratación temporal con sede en Cranston, Rhode Island. El acuerdo resuelve la investigación por parte del Departamento sobre si Provisional discriminó a individuos que no eran ciudadanos de los EE. UU. a la hora de comprobar sus documentos de autorización para trabajar, en contra de la ley de Inmigración y Nacionalidad (INA», por sus siglas en inglés).
La investigación del Departamento concluyó que Provisional, de forma rutinaria, solicitó a individuos que no eran ciudadanos de los EE. UU. que presentasen documentos de identidad específicos para demostrar que cuentan con autorización para trabajar, tales como una tarjeta de residencia permanente (PRC, por sus siglas en inglés), mientras que no pidieron documentos de identidad específicos a ciudadanos estadounidenses. En muchos casos, los ciudadanos estadounidenses y los residentes permanentes legales y otros individuos que no son ciudadanos de los EE. UU. pero que sí cuentan con autorización para trabajar disponen de los mismos documentos de identidad y autorización para trabajar y pueden elegir de las Listas de Documentos Aceptables para demostrar que tienen autorización para trabajar. La disposición antidiscriminatoria de la INA prohíbe que los empleadores sometan a sus empleados a requisitos documentales injustas con base en la ciudadanía o nacionalidad de origen de dichos empleados.
Conforme el acuerdo, Provisional deberá pagar una multa civil a los Estados Unidos que asciende a $16.290, publicar notificaciones para informar a los trabajadores acerca de sus derechos al amparo de la disposición antidiscriminatoria de la INA, capacitar a su personal de recursos humanos y someterse a los requisitos de declaración y supervisión del Departamento.
«El Departamento de Justicia les advierte a los empleadores que no deben crear barreras discriminatorias al empleo», declaró el Fiscal General en funciones, Tom Wheeler, de la División de Derechos Civiles. «Tanto las empresas grandes como las pequeñas deben asegurar que sus prácticas en lo que se refiere al Formulario I-9 cumplan con las leyes federales. Agradecemos la cooperación de Provisional con el Departamento por abordar este asunto».
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a otros requisitos documentales por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen, o a la discriminación por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Settlement Agreement
Executive Office for Immigration Review Swears in Seven Immigration JudgesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the investiture of seven new immigration judges. Chief Immigration Judge MaryBeth Keller presided over the investiture during a ceremony held May 5, 2017, at EOIR headquarters in Falls Church, Va.
After a thorough application process, Attorney General Jeff Sessions appointed Nina M. Carbone, Jennifer I. Gaz, Charlotte S. Marquez, Jose L. Peñalosa Jr., Donald W. Thompson, David C. Whipple, and Ryan R. Wood to their new positions.
Biographical information follows.
Nina M. Carbone, Immigration Judge, Aurora Immigration Court
Attorney General Jeff Sessions appointed Nina M. Carbone to begin hearing cases in April 2017. Judge Carbone earned a Bachelor of Arts degree in 2005 from the University of Kansas and a Juris Doctor in 2008 from the John Marshall Law School. From 2015 to 2017, she served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Denver, Colo. From 2012 to 2015, she was an associate general counsel at the Employee Labor Relations Unit, Office of the General Counsel, Executive Office for Immigration Review (EOIR), Department of Justice (DOJ). From 2010 to 2012, she served as an attorney advisor in the Office of the Chief Immigration Judge, EOIR, DOJ. From 2008 to 2010, she served as a judicial law clerk at the Miami Immigration Court, EOIR, DOJ, entering on duty through the Attorney General’s Honors Program. Judge Carbone is a member of the Illinois State Bar.
Jennifer I. Gaz, Immigration Judge, Eloy Immigration Court
Attorney General Jeff Sessions appointed Jennifer I. Gaz to begin hearing cases in April 2017. Judge Gaz earned a Bachelor of Arts degree in 1994 from the University of Illinois at Urbana–Champaign and a Juris Doctor in 1997 from the DePaul University College of Law. From May 2007 through April 2017, she served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Eloy and Phoenix, Ariz. From November 2003 to April 2007, she was an associate attorney with Wolin, Kelter & Rosen Ltd. From October 2000 to October 2003, she served as staff counsel with the Office of the General Counsel, Chicago Housing Authority. From 1999 to 2000, she was an associate attorney with Fraterrigo, Beranek, Feiereisel & Kasbohm in Chicago. From 1997 to 1999, she was an associate attorney with Eannace, Meade & Associates. Judge Gaz is a member of the Illinois State Bar.
Charlotte S. Marquez, Immigration Judge, New Orleans Immigration Court
Attorney General Jeff Sessions appointed Charlotte S. Marquez to begin hearing cases in April 2017. Judge Marquez earned a Bachelor of Science degree in 1995 from Louisiana State University and a Juris Doctor in 1998 from Tulane Law School. From March 2006 to April 2017, she served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in New Orleans, La. From June 2000 through March 2006, she was an associate attorney with Jones Walker LLP. From August 1998 to June 2000 she was an associate attorney with McCalla, Thompson, Pyburn, Hymowitz & Shapiro LLP. Judge Marquez is a member of the Louisiana State Bar.
José Luis Peñalosa Jr., Immigration Judge, Adelanto Immigration Court
Attorney General Jeff Sessions appointed José Luis Peñalosa Jr. to begin hearing cases in April 2017. Judge Peñalosa earned a Bachelor of Arts degree in 1986 from the University of California, Los Angeles, and a Juris Doctor in 1989 from the Arizona State University Sandra Day O’Connor College of Law. From May 1993 to April 2017, he was a solo practitioner at Peñalosa & Associates P.C. From May 1991 to May 1993, he was an attorney with Friendly House Inc. in Phoenix. Judge Peñalosa is a member of the State Bar of Arizona and the Colorado Bar.
Donald W. Thompson, Immigration Judge, New York City Immigration Court
Attorney General Jeff Sessions appointed Donald W. Thompson to begin hearing cases in April 2017. Judge Thompson earned a Bachelor of Arts degree in 2003 from the College of New Jersey and a Juris Doctor in 2006 from the Seton Hall University School of Law. From September 2007 to April 2017, he served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in San Francisco and New York, N.Y. From 2006 to 2007, he clerked for the Honorable Estela De La Cruz of the New Jersey Superior Court. Judge Thompson is a member of the New York and New Jersey State Bars.
David C. Whipple, Immigration Judge, Cleveland Immigration Court
Attorney General Jeff Sessions appointed David C. Whipple to begin hearing cases in April 2017. Judge Whipple earned a Bachelor of Arts degree in 1991 and a Master of Arts in 1995 from the University of Michigan, and a Juris Doctor in 2007 from the University of Idaho College of Law. From March 2016 to April 2017, he served as a special assistant U.S. attorney in the U.S. Attorney’s Office, District of Arizona, Department of Justice. From October 2009 through April 2017, he served as an assistant chief counsel for the Office of the Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Eloy and Florence, Ariz. From May 2007 to October 2009, he served as a deputy prosecuting attorney for the Office of the Kootenai County Prosecuting Attorney in Idaho. Judge Whipple is a member of the Idaho State Bar.
Ryan R. Wood, Immigration Judge, Bloomington Immigration Court
Attorney General Jeff Sessions appointed Ryan R. Wood to begin hearing cases in April 2017. Judge Wood earned a Bachelor of Arts degree in 2000 from Hamline University, a Juris Doctor in 2004 from the Hamline University School of Law, and a Master of Business Administration in 2015 from the Hamline University School of Business. From November 2014 to April 2017, he served as a special assistant U.S. attorney in the U.S. Attorney’s Office, District of Minnesota, Department of Justice. From October 2009 through November 2014, he served as an assistant chief counsel for the Office of the Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Fort Snelling, Minn. From January 2005 to October 2009, he was a judge advocate with the U.S. Army Judge Advocate General Corps, serving in the 4th and 7th Infantry Divisions. Judge Wood is a member of the Minnesota State Bar.
Bumble Bee Agrees to Plead Guilty to Price FixingRead the Press Release
Bumble Bee Foods LLC has agreed to plead guilty for its role in a conspiracy to fix the prices of shelf-stable tuna fish, such as canned and pouch tuna, sold in the United States, the Department of Justice announced.
According to a one-count felony charge filed today in the U.S. District Court for the Northern District of California in San Francisco, Bumble Bee and its co-conspirators agreed to fix the prices of shelf-stable tuna fish from as early as the first quarter of 2011 through at least as late as the fourth quarter of 2013. In addition to agreeing to plead guilty, Bumble Bee has agreed to pay a $25 million criminal fine, which will increase to a maximum criminal fine of $81.5 million, payable by a related entity, in the event of a sale of Bumble Bee subject to certain terms and conditions. Bumble Bee has also agreed to cooperate with the Antitrust Division’s ongoing investigation. The plea agreement is subject to court approval.
“Today’s charge is the third to be filed – and the first to be filed against a corporate defendant – in the Antitrust Division’s ongoing investigation into price fixing among some of the largest suppliers of packaged seafood,” said Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division. “The division, along with our law enforcement colleagues, will continue to hold these companies and their executives accountable for conduct that targeted a staple in American households.”
“We echo the Department of Justice Antitrust Division's sentiment,” said Special Agent in Charge John F. Bennett of the FBI’s San Francisco Division. “Companies small and large hold a great deal of the American peoples’ trust and this type of unfair, greedy behavior will not be tolerated.”
Today’s charge is the result of an ongoing federal antitrust investigation into the packaged seafood industry, which is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the packaged seafood industry should contact the Antitrust Division’s Citizen Complaint Center at (888) 647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at (415) 553-7400.
Bumble Bee InformationFederal Court Finds that Washington, D.C. Tax Return Preparer Violated Injunction and Orders Him to Pay Nearly $30,000 as Civil Contempt SanctionRead the Press Release
A federal court in Greenbelt, Maryland has found that Marvin L. Binion Sr. violated the Court’s previous permanent injunction barring him from preparing tax returns for others and from operating a tax preparation business, announced Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. The Court ordered Binion Sr. to comply with the previously entered injunction and to pay the United States $29,914.38 for its costs incurred in investigating whether Binion Sr. had complied with the injunction.
U.S. District Court Judge Roger W. Titus of the District of Maryland entered the order, with Binion Sr.’s consent, finding that Binion Sr. violated the court’s May 8, 2013 permanent injunction. According to the United States’ supplemental filing in this case, despite the 2013 injunction, Binion, Sr. was preparing tax returns for others and running and/or profiting from a tax return preparation business called Universal Tax Services located at 717 Kennedy Street NW in Washington, DC. The United States also alleged that Binion Sr. had his customers mail in paper returns without identifying him as the paid tax return preparer. Before the government filed suit for an injunction against Binion Sr. in 2013, a federal court in Greenbelt, Maryland sentenced Binion Sr. in 2008, to prison for aiding and assisting in the filing of false income tax returns.
In addition to imposing a civil compensatory judgment for the government’s investigation costs, the court also ordered Binion Sr. to produce bank records and customer lists to the United States, and to send a letter to his customers informing them that he is barred from preparing federal tax returns for others.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Department of Justice Releases Report Detailing the Prosecutions of Transnational Criminal Organizations and their SubsidiariesRead the Press Release
Dismantling transnational criminal organizations is a priority of President Trump’s administration and the Department of Justice is committed to taking down these groups.
“Transnational criminal organizations represent one of the gravest threats to American public safety today,” said Attorney General Jeff Sessions. “The Justice Department has zero tolerance for these vicious organizations and our message to them is: We will find you. We will devastate your networks. We will starve your revenue sources, deplete your ranks and seize your profits. We will not concede a single block or street corner to your vicious tactics.”
As part of the commitment to dismantling these organizations, the president has issued an Executive Order on Enforcing Federal Law with Respect to Transnational Criminal Organizations and Preventing International Trafficking. Pursuant to the Executive Order, the Department of Justice is issuing a report detailing convictions in the United States relating to transnational criminal organizations and their subsidiaries.
The attached report, provided in accordance with Section 3 (g) of the Executive Order, provides information pertaining to the number of convictions in investigations involving transnational criminal organizations as reported by the Organized Crime Drug Enforcement Task Forces (OCDETF), for the period beginning Jan. 1, 2017, and ending March 31, 2017.
The report shows 421 convictions in cases targeting transnational criminal organizations, which is 42 percent of the total number of convictions reported during the quarter for the OCDETF Program.
Convictions of Members of Transnational Criminal Organizations and their SubsidiariesPursuant to Executive Order on Public Safety, Department of Justice Releases Data on Incarcerated AliensRead the Press Release
President Trump’s Executive Order on Public Safety in the Interior of the United States requires the Department of Justice to collect relevant data and provide quarterly reports on data collection efforts. The data in this release shows a significant prison population of incarcerated aliens.
“Illegal aliens who commit additional crimes in the United States are a threat to public safety and a burden on our criminal justice system,” said Attorney General Jeff Sessions. “This is why we must secure our borders through a wall and effective law enforcement, and we must strengthen cooperation between federal, state and local governments as we strive to fulfill our sacred duty of protecting and serving the American people.”
Below is a summary of data collected under Section 16 of the Order, which directs “the Secretary [of Homeland Security] and the Attorney General . . . to collect relevant data and provide quarterly reports” regarding the following subjects: (a) the immigration status of all aliens incarcerated under the supervision of the Bureau of Prisons; (b) the immigration status of all aliens incarcerated as federal pretrial detainees; and (c) the immigration status of all convicted aliens in state prisons and local detention centers throughout the United States.
Information Regarding Immigration Status of Aliens Incarcerated Under the Supervision of the Federal Bureau of Prisons
The Department’s Bureau of Prisons (BOP) has an operational process for maintaining data regarding foreign-born inmates in its custody. On a daily basis, BOP supplies this data to Immigration and Customs Enforcement (ICE). ICE, in turn, analyzes that data to determine the immigration status of each inmate and provides that information back to BOP.
By way of satisfying the department’s first quarterly report of this data, below is information regarding aliens currently incarcerated under the supervision of BOP. This data is current as of March 25, 2017:
There are 45,493 foreign-born inmates currently in BOP custody, of which 3,939 are U.S. citizens (either naturalized or derivative). Of the remaining 41,554 foreign-born inmates (aliens):
o Approximately 22,541 (54.2 percent) are aliens for which final immigration orders have been issued for their removal;
o Approximately 13,886 (33.4 percent) are aliens who are under ICE investigation for possible removal;
o Approximately 5,101 (12.3 percent) are aliens still pending adjudication (in other words, ICE has charged these aliens as removal cases, but a final disposition has not yet been reached); and
o Approximately 26 (0.1 percent) are aliens who have been granted relief on the basis of asylum claims.
Information Regarding the Immigration Status of Aliens Incarcerated as Federal Pretrial Detainees
The United States Marshals Service (USMS) is the Justice Department’s component charged with housing and care of federal pretrial detainees. USMS recently instituted a program to capture data regarding the immigration status of these detainees. During the prisoner intake process, USMS captures arrestee data such as place of birth, citizenship country and alien number (if available), in a system called the Justice Detainee Information System (JDIS).
At the department’s direction, USMS has begun providing ICE with complete data on all foreign-born detainees on a daily basis. The first of these data transfers to ICE took place on April 5, 2017, with a transfer of data associated with approximately 19,000 foreign-born detainees. ICE anticipates that its analysis of this data will soon be complete, and the department will then provide an updated status report.
Immigration Status of All Convicted Aliens Incarcerated in State Prisons and Local Detention Centers Throughout the United States
The Department of Justice and the Department of Homeland Security (DHS) do not currently have a program that collects data regarding the immigration status of convicted aliens incarcerated in state prisons and local detention centers throughout the United States. Neither the Department of Justice nor DHS can independently collect this data without the assistance of the other. To address this need, the Department of Justice is in the process of establishing such a program through its Office of Justice Programs (OJP), which houses the Bureau of Justice Statistics (BJS). BJS already collects some relevant aggregate data from state and local facilities and the department intends to permanently expand BJS’s data collection efforts in this area.
Illinois Woman Sentenced to Prison for Filing Tax Returns Using Stolen IDsRead the Press Release
A former resident of Poplar Grove, Illinois was sentenced today to 87 months in prison for filing tax returns using stolen identities, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, from 2012 through 2014, Shameka Carr, 30, used stolen IDs to file tax returns seeking fraudulent tax refunds with the Internal Revenue Service (IRS). Carr directed the IRS to send the refunds in the form of prepaid debit cards and refund checks mailed to addresses that she controlled in Rockford, Illinios and its surrounding areas. Carr admitted to an intended tax loss of $1,026,284.
In addition to the term of prison imposed, Carr was also ordered to serve three years of supervised release and to pay $365,764 in restitution to the IRS. Carr pleaded guilty on January 24 to mail fraud and aggravated identity theft.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation and the U.S. Postal Inspection Service, and the Boone County Sheriff’s Department, who conducted the investigation, and Trial Attorneys Michael C. Boteler and John T. Mulcahy of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Florida Man Indicted for Scheme Seeking $5.6 Million in Tax RefundsRead the Press Release
A federal grand jury sitting in West Palm Beach, Florida returned an indictment on April 25, which was unsealed today, charging a Florida resident with corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws, filing false tax returns, theft of government property and money laundering, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, David R. Andre of Boynton Beach, Florida, filed false income tax returns with the Internal Revenue Service (IRS) from 2010 to 2015 that sought more than $5.6 million in fraudulent tax refunds. The indictment further alleges that the IRS paid out approximately $463,920, which was deposited into Andre’s personal bank account. Andre also allegedly attempted to impede the due administration of the internal revenue laws by making false statements to IRS agents during interviews in 2015. According to the indictment, Andre falsely stated to IRS agents that he purchased his residence with inheritance proceeds, when in fact he purchased it with illegal proceeds from the tax refund fraud.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Andre faces a statutory maximum sentence of three years in prison for corruptly endeavoring to impede the due administration of the internal revenue laws, three years in prison for each count of filing a false tax return, 10 years in prison for each count of theft of government property, and 10 years in prison for each money laundering count. Andre also faces a period of supervised release, restitution, forfeiture and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Daniel McGraw and Charles Edgar Jr. of the Tax Division, who are prosecuting the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Southern District of Florida for its substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Cramer Chennaux 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, announced that defendant CRAMER CHENNAUX, age 30, was sentenced in District Court to 57 months imprisonment, to be followed by three of supervised release, and 100 hours of community service. The Court also ordered CHENNAUX 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 May 25, 2016, CHENNAUX was charged by Indictment with Possession of Methamphetamine with Intent to Distribute. On July 27, 2016, CHENNAUX entered a guilty plea to an Information charging him with Possession of Methamphetamine with Intent to Distribute, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(C). Law enforcement had received information that CHENNAUX was in possession of a large amount of methamphetamine at a hotel room. They subsequently seized over 122 grams of methamphetamine, with a 99 percent purity level. Officers also discovered $7,200.00 during the search. The money was administratively forfeited.
The investigation was conducted by DEA, Superior Court of Guam Marshals Division, Guam Superior Court Probation Office, Guam Police Department, and the U.S. Marshals Service. The case was prosecuted by Clyde Lemons, Jr., Assistant U.S. Attorney.
Georgina J. Camacho Sentenced to Prison for Financial Institution FraudRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant GEORGINA J. CAMACHO, age 30, was sentenced in District Court to a 12-month term of imprisonment, to be followed by four years of supervised release. She was also ordered to pay a mandatory $200 assessment fee, restitution in the amount of $26,237.43 and 50 hours of community service.
On June 20, 2016, Defendant CAMACHO waived Indictment and entered a plea of guilty to an Information charging her with two counts of Financial Institution Fraud, in violation of 18 U.S.C. § 1344. The investigation revealed that CAMACHO defrauded Navy Federal Credit Union (NFCU), the Navy Exchange Services Command (NEX), and the Army and Air Force and Exchange Services (AAFES) by writing checks drawn from her NFCU account which had insufficient funds and was closed. From May 27, 2015 to June 6, 2015, CAMACHO wrote 39 checks, made them payable to and negotiated them at the NEX and AAFES, in order to obtain merchandise from them. The NEX and AAFES incurred losses of $16,537.98 and $9,699.45, respectively.
The case was investigated by agents of the U.S. Naval Criminal Investigative Service, and the 36th Security Forces Squadron, Andersen Air Force Base. The case was prosecuted by Marivic P. David, Assistant United States Attorney for the District of Guam.
Florida Man Sentenced to Prison for Engaging in a Child Exploitation EnterpriseRead the Press Release
The creator and lead administrator of Playpen, a highly sophisticated website dedicated to the sexual abuse of children which operated on the Tor anonymity network, was sentenced today for his role in this global child exploitation enterprise.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina; Assistant Director Stephen Richardson of the FBI’s Criminal Investigative Division; Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division; Special Agent in Charge Harold H. Shaw of the FBI’s Boston Division; and Former Special Agent in Charge Paul Wysopal of the FBI’s Tampa, Florida, Division made the announcement.
Steven W. Chase, 58, of Naples, Florida, was sentenced to 30 years in prison, along with a lifetime term of supervised release, and was ordered to forfeit his residence in Naples by U.S. District Judge Richard L. Voorhees of the Western District of North Carolina. On Sept. 16, 2016, a federal jury found Chase guilty of one count of engaging in a child exploitation enterprise, one count of advertising child pornography, three counts of transportation of child pornography and one count of possession of child pornography. The jury also returned a special verdict determining that Chase should be ordered to forfeit all property derived from, involved in, or traceable to his criminal activities, to include his Naples residence.
“Child predators use online forums on anonymous networks to abuse and exploit children, preying on the inexperienced and vulnerable in society. This pervasive and global problem demands an aggressive, technology-driven response,” said Acting Assistant Attorney General Blanco. “The sentencing of the creator of the Playpen forum – along with the identification, apprehension and prosecution of forum members around the country – sends a message that online predators will be caught and prosecuted. While identifying and apprehending these criminals can be challenging, it is not impossible, and together with our domestic and foreign partners we will use every legal authority and technical tool we have to root out these predators and protect children from harm.”
“Chase was the mastermind and gatekeeper of Playpen, a hidden, members-only Internet platform and a safe-haven for those looking to view and trade child pornography without detection. The depiction of the horrendous sexual exploitation of innocent and vulnerable children is a crime my office takes very seriously,” said U.S. Attorney Westmoreland Rose. “Today’s sentence delivers a clear message that the dark web is not a safe place for those looking to possess, receive and share child pornography: this type of criminal activity will land you in jail for a long time.”
“The abuse of an innocent child is among the most unconscionable offenses,” said Assistant Director Richardson. “When multiple people conspire to develop and promote a malicious website to sexually assault and exploit children, the FBI furthers its resolve to find these perpetrators. As I have said before and as today’s sentencing proves, the FBI will stop at nothing to deliver justice for these innocent victims. We owe a debt of gratitude to the men and women of the FBI and our international partners for their dedication and hard work on this case.”
Evidence at trial established that beginning in August 2014, Chase created the Playpen website as a Tor hidden service, which only permitted individuals operating on the Tor anonymity network to access the site. Evidence at trial further established that Chase served as lead administrator of Playpen, through which he and more than 150,000 other members authored and viewed tens of thousands of postings involving the sexual abuse of children. Images and videos shared through the website were highly categorized towards victim age and gender, as well as the type of sexual activity, according to trial evidence. Testimony at trial also established that in addition to use of the Tor anonymity network, website members employed other advanced technological means in order to thwart law enforcement’s efforts, including elaborate file encryption.
As lead administrator of the website, trial evidence demonstrated that Chase: chose the name of the website; selected and made payments to the website hosting company; regularly updated the website with new features and security fixes; promoted several members of the website to Administrator and Moderator status to assist with the administration of the criminal enterprise; and spent hundreds of hours logged in to the website – personally authoring hundreds of postings.
Chase was arrested following a court-authorized search of his home on Feb. 19, 2015. Forensic examination of a computer and devices seized pursuant to the search revealed that he was in possession of thousands of images depicting the sexual abuse of children as young as infants and toddlers.
Chase’s co-defendants Michael Fluckiger, 46, of Portland, Indiana, and David Lynn Browning, 47, of Wooton, Kentucky, the co-administrator and global moderator of the website, respectively, pleaded guilty in December 2015 to engaging in a child exploitation enterprise for their roles in helping Chase run the website. On Jan. 12, 2017, Fluckiger was sentenced to 240 months in prison for engaging in a child exploitation enterprise, along with lifetime supervised release. On Feb. 7, 2017, Browning was sentenced to 240 months in prison for engaging in a child exploitation enterprise, along with a lifetime term of supervised release.
Following Chase’s arrest, the FBI obtained approval from a federal court to deploy a Network Investigative Technique (NIT) to pierce through the anonymity provided by the Tor network and obtain IP address and other basic, computer-related information to help locate and identify the users of the website Chase created. The FBI subsequently issued investigative leads to offices in every U.S. State. As a result of the ongoing investigation, at least 350 U.S.-based individuals have been arrested, 25 producers of child pornography have been prosecuted, 51 alleged hands-on abusers have been prosecuted and 55 American children who were subjected to sexual abuse have been successfully identified or rescued.
International lead information was coordinated through EUROPOL’s European Cybercrime Center (EC3), who received and disseminated information through its network of member states, and the FBI Legal Attaché network. The ongoing international investigation has yielded at least 520 arrests and the successful identification and rescue of at least 186 children who were subjected to sexual abuse.
The FBI’s Violent Crimes Against Children Section, Major Case Coordination Unit and Digital Analysis and Research Center investigated the case with assistance from the FBI’s Charlotte, Tampa and Boston Field Offices. Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Cortney Randall of the Western District of North Carolina prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Deere Abandons Proposed Acquisition of Precision Planting from MonsantoRead the Press Release
The Department of Justice announced today that Deere & Company and the Monsanto Company terminated Deere’s attempt to purchase Precision Planting LLC from Monsanto. The department filed suit on Aug. 31, 2016, to block the acquisition, alleging that the transaction was a merger-to-monopoly in high-speed precision planting systems, an innovative technology that enables farmers to accurately plant corn, soybeans and other row crops at up to twice the speed of a conventional planter. The case was scheduled for trial in U.S. District Court in Chicago on June 5, 2017.
“The companies’ decision to abandon this transaction is a victory for American farmers and consumers,” said Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division. “Had this acquisition gone forward, significant head-to-head competition between Deere and Monsanto’s Precision Planting – competition that has led to lower prices and more innovative products – would have been lost. Agriculture is one of the most important sectors of our economy and the Antitrust Division will remain vigilant to ensure that competition in agriculture markets is not thwarted through illegal transactions.”
The proposed acquisition would have combined the only two significant U.S. providers of high-speed precision planting systems. Planting at higher speeds can be highly valuable to farmers, many of whom have a limited window each year to plant their crops to achieve the highest crop yields. As a result, high-speed precision planting technology is expected to become the industry standard in the coming years.
Deere & Company, a Delaware corporation headquartered in Moline, Illinois, is the largest manufacturer of planting equipment in the United States, including its ExactEmerge high-speed precision planting system.
Precision Planting LLC is a Delaware limited liability company headquartered in Tremont, Illinois. It is a leading innovator in planting equipment, including its SpeedTube high-speed precision planting system. Precision Planting is a subsidiary of Monsanto Company, a Delaware corporation headquartered in St. Louis, Missouri.
New York Tax Return Preparer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
A Queens, New York tax return preparer was sentenced to serve 24 months in prison today for filing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
Williesteina Jacobs was convicted in July 2016 by a federal jury in the U.S. District Court for the Eastern District of New York. According to documents filed with the court and evidence presented at trial, Jacobs operated International Professional Business Services, a tax preparation business located in South Richmond Hill, New York, and Jamaica, New York. From 2007 through 2010, Jacobs filed false individual income tax returns with the Internal Revenue Service (IRS) on behalf of her clients and claimed refunds to which they were not entitled. These tax returns claimed false business losses and reported grossly inflated or fictitious deductions for, among other things, charitable donations.
In addition to the term of prison imposed, Jacobs was also ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $31,188.
Acting Deputy Assistant Attorney General Goldberg commended agents of IRS–Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Yael T. Epstein and Andrew J. Kameros, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Kisano Opisbo aka Enrickson Fredrick SentencedRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant KISANO OPISBO aka ENRICKSON FREDRICK, age 43, a citizen of the Federated States of Micronesia (FSM), was sentenced on April 27, 2017, in District Court, to five months and 18 days imprisonment. The Court also ordered a three-year term of supervised release following OPISBO’S release, in addition to the payment of a mandatory $100 assessment fee.
On December 13, 2016, OPISBO was charged by Indictment with Illegal Reentry of Removed Alien, in violation of 8 U.S.C. § 1326(a) and (b)(2). On January 27, 2017, OPISBO entered a guilty plea to the charge. OPISBO was previously deported to the FSM in December 2002. His deportation followed a conviction on Guam for Burglary, Fourth Degree Criminal Sexual Conduct, and Indecent Exposure. OPISBO had no permission to return to the United States. He later changed his name and obtained a new passport, which enabled his travel to Hawaii and then South Carolina. On November 11, 2016, while traveling to Pohnpei via Guam, federal immigration authorities arrested OPISBO after determining his true identity through biometric data.
Acting United States Attorney Anderson stated, “The enforcement of federal immigration laws is a high priority for the Department of Justice. Our office will continue to hold criminal aliens accountable for unlawfully entering the United States.”
The investigation was conducted by the U.S. Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Rosetta San Nicolas, Assistant United States Attorney for the District of Guam.
D.C. Circuit Affirms Decision Blocking Anthem’s Acquisition of CignaRead the Press Release
The U.S. Court of Appeals for the D.C. Circuit today affirmed the decision by the District Court for the District of Columbia blocking health insurer Anthem, Inc.’s acquisition of Cigna Corp., the Justice Department announced. Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division released the following statement today after the ruling in United States et al. v. Anthem, Inc. and Cigna Corp.:
“We are pleased with the appellate court’s decision. It upholds an injunction against the merger of two of the country’s largest health insurers, which not only would have led to higher prices but also slowed innovation and harmed consumers by weakening value-based offerings aimed at lowering medical costs. The decision confirms the district court’s conclusion that the merger would not have provided real benefits to consumers, but instead would have harmed competition in these important markets.
“I am proud of the outstanding work done by the trial team, who established that this merger would be anticompetitive, and by the lawyers who defended the case on appeal. As this case shows, the Antitrust Division and our state partners will continue to vigorously protect competition and enforce the antitrust laws in this critical industry.”
In July 2016, the Antitrust Division filed a lawsuit in the U.S. District Court for the District of Columbia seeking to block Anthem’s $54 billion acquisition of Cigna, the largest proposed transaction in the history of the healthcare industry. The division’s complaint alleged that the merger would substantially lessen competition in the health insurance industry in dozens of markets throughout the United States.
The Division tried the case before Judge Amy Berman Jackson over a seven-week period from Nov. 21, 2016, to Jan. 3, 2017. On Feb. 8, 2017, Judge Jackson ruled in favor of the Division and blocked the proposed merger. She found that the merger was likely to substantially lessen competition in the market for the sale of health insurance to national accounts based in fourteen states, and in the sale of health insurance to large employers in Richmond, Virginia. Five days after the court’s decision, Anthem filed a brief appealing the decision and separately requested expedited review from the court of appeals. Oral argument was held six weeks later on March 24, 2017.
The United States was joined in the lawsuit by the District of Columbia and the States of California, Colorado, Connecticut, Georgia, Iowa, Maine, Maryland, New Hampshire, New York, Tennessee and Virginia.
Attorney General Jeff Sessions Announces Dana Boente to Serve as Acting Assistant Attorney General of the National Security DivisionRead the Press Release
Attorney General Jeff Sessions today announced the appointment of Dana Boente as Acting Assistant Attorney General of the National Security Division. Boente succeeds Acting Assistant Attorney General Mary McCord, who serves as the Principal Deputy Assistant Attorney General and who recently announced that she would be departing in May.
“Dana Boente has been a dedicated public servant for decades and has served in important leadership roles in the Department of Justice,” said Attorney General Sessions. “In recent months, he has provided extraordinary leadership during the transition period. I am pleased that he has agreed to continue his service by leading our efforts to keep America safe. I also thank Mary McCord for her dedicated service to the department.”
Prior to this appointment, Boente had been serving as the Acting Deputy Attorney General since Jan. 30, 2017, and has served and will continue to serve as the U.S. Attorney for the Eastern District of Virginia since his confirmation by the U.S. Senate on Dec. 15, 2015. Boente was appointed by the Attorney General in December 2012 to serve as the U.S. Attorney for the Eastern District of Louisiana, a position he held until September 2013. Boente began his career with the Justice Department in 1984 with the Tax Division, and in January 2001 he became an Assistant U.S. Attorney in the Fraud Unit of the Eastern District of Virginia.
From 2005 to 2007, Boente served as the Principal Deputy Assistant Attorney General of the Tax Division. Following his service with the Tax Division, he returned to the Eastern District of Virginia when he was selected as the First Assistant U.S. Attorney. He served as acting U.S. Attorney for that office from October 2008 through September 2009 and from Sept. 23, 2013 until his Senate confirmation.
Peter Anthony C. Santos 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, announced that defendant PETER ANTHONY CONCEPCION SANTOS, age 44, was sentenced in District Court to a 63-month term of imprisonment, to be followed by three years of supervised release, and 100 hours of community service. The Court also ordered SANTOS to pay a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
November 18, 2015, SANTOS was charged by Superseding Indictment with Conspiracy to Distribute Methamphetamine Hydrochloride and Attempted Possession with Intent to Distribute Methamphetamine Hydrochloride. On February 23, 2016, SANTOS entered a guilty plea to an Information charging him with Attempted Possession with Intent to Distribute Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(C) and 18 U.S.C. § 2. The United States also sought forfeiture of related assets under federal law. The investigation revealed that SANTOS, and others, agreed to use the mail system to distribute large quantities of methamphetamine on Guam. Law enforcement seized approximately 4.5 kilo grams of methamphetamine, with a 99 percent purity level. Officers also discovered $2,772 during a search incident to the arrest of SANTOS. SANTOS testified at trial against his co-defendant Justin Cruz. Cruz was sentenced on March 22, 2017, to 35 years imprisonment for Conspiracy to Distribute methamphetamine.
The investigation was pursued by the Organized Crime Drug Enforcement Task Force (OCDETF), a specialized multi-agency, multi-jurisdictional law enforcement team effort. OCDETF investigates and prosecutes the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
This OCDETF investigation involved federal agents and local law enforcement officers of the U.S. Postal Inspection Service (USPIS), Drug Enforcement Administration (DEA), U.S. Department of Homeland Security Investigations (HSI), Guam Police Department (GPD), Guam Customs and Quarantine Agency (GCQA), Superior Court of Guam Probation Office, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), U.S. National Oceanic Atmosphere Administration (NOAA), and U.S. Coast Guard Criminal Investigative Service (CGIS). The case was prosecuted by Clyde Lemons, Jr., an Assistant United States Attorney for the District of Guam.
DEA Prepares for Prescription Drug Take Back DayRead the Press Release
Acting United States Attorney SHAWN N. ANDERSON, for the Districts of Guam and the Northern Mariana Islands (NMI), wants to encourage the public to participate in the Drug Enforcement Administration’s National Prescription Drug Take Back Day on Saturday, April 29, 2017.
On October 22, 2016, the public turned in 731,269 pounds—almost 366 tons—of medication to DEA and more than 4,000 of its community partners at almost 5,200 collection sites nationwide. Over the life of the program, 7.1 million pounds (more than 3,500 tons) of prescription drugs have been removed from medicine cabinets, kitchen drawers, and nightstands by citizens around the country.
Unused medicines in the home are a problem because the majority of the 6.4 million Americans who abused CPDs in 2015, including the almost 4 million who abused prescription painkillers, say they obtained those drugs from friends and family, including from a home medicine cabinet, according to the National Survey on Drug Use and Health released last month. Some painkiller abusers move on to heroin: four out of five new heroin users started with painkillers.
Almost 30,000 people—78 a day—died from overdosing on these painkillers or heroin in 2014, according to the Centers for Disease Control and Prevention.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
Collection sites will be set up throughout communities nationwide. The following sites in Guam and in the NMI are designated to receive unused prescription drugs:
- Naval Base Guam (Navy Exchange Food Court)
- Agana Shopping Center (Across Vitamin World)
- Andersen Air Force Base Exchange (Front Entrance)
- Saipan Commonwealth Health Center (in front of the pharmacy)
For more information on prescription drug abuse, go to: www.dea.gov, www.getsmartaboutdrugs.com, or www.justthinktwice.com.Three Northern California Real Estate Investors Sentenced for Rigging Bids at Public Foreclosure AuctionsRead the Press Release
After being convicted at trial, three Northern California real estate investors were sentenced today for their role in a conspiracy to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Robert Alhashash Rasheed, John Lee Berry III and Refugio Diaz were charged on Nov. 19, 2014, in an indictment returned by a federal grand jury in the Northern District of California. They were convicted of one count each of conspiring to rig bids on Dec. 15, 2016. Today, Rasheed was sentenced to serve fourteen months in prison and serve 1260 hours of community service in lieu of paying a criminal fine, Berry was sentenced to serve ten months in prison and ordered to serve 974 hours of community service in lieu of paying a criminal fine and Diaz was sentenced to serve eight months in prison and ordered to serve 579 hours of community service in lieu of paying a criminal fine.
Between May 2008 and December 2010, the defendants conspired with others not to bid against one another, instead designating a winning bidder to obtain selected properties at public real estate foreclosure auctions in Alameda County. The members of the conspiracy then held second, private auctions to award the properties to members of the conspiracy and determine payoffs for other conspirators who had agreed not to bid against each other at the public auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held. The primary purpose of the conspiracies was to suppress and eliminate competition in order to obtain selected real estate offered at Alameda County public foreclosure auctions at noncompetitive prices. When real estate properties are sold at public auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with the remaining proceeds, if any, paid to the homeowner.
The sentence announced today is a result of the department’s ongoing investigation into bid rigging at public real estate foreclosure auctions in California’s Alameda, Contra Costa, San Francisco and San Mateo 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.
Federal Court Bars Kansas City Tax Return Preparers from Preparing Tax Returns for OthersRead the Press Release
A federal court in Kansas City, Kansas has permanently barred Everett Bias and Integrity Solutions Tax Consultants Inc. (ISTC) from preparing federal tax returns for others, the Justice Department announced today.
In its complaint, the government alleged that Bias and ISTC prepared false returns for customers located in both Kansas City, Kansas and Kansas City, Missouri. In addition to barring the defendants from preparing tax returns, the court ordered the defendants to contact all customers for whom they prepared federal tax returns since 2014 to inform them of the permanent injunction and provide the United States with a list of all of these persons.
According to the government’s complaint, Bias and ISTC unlawfully prepared federal tax returns that lowered their customers’ federal tax liabilities by using S corporations. This type of corporation passes corporate income, losses, deductions, and credits to its shareholders for federal tax purposes. Shareholders report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. According to the government’s complaint, Bias and ITSC:
-
Failed to report S corporation pass-through income as taxable income on the customers’ personal income tax returns;
-
Falsely lowered the income of customers’ S corporations and then reported that false lowered income amount on the customers’ personal income tax returns;
-
Improperly double-deducted customers’ personal expenses, such as mortgage interest and real estate taxes, on customers’ corporate and personal returns; and
- Concocted S corporations in order to improperly deduct customers’ personal expenses as business expenses and lower pass through income or create a phony flow through loss.
The government similarly alleged that Bias and ISTC concocted businesses for customers claiming that they were sole proprietors -- which are required to report its profit or loss on a Schedule C (Form 1040, Schedule C, “Profit or Loss from Business”) to the income tax return -- then fabricated the income and expenses of the fictitious business to show a loss, which falsely lowered their customers’ taxable income. Finally, the government alleged that Bias and ISTC fabricated itemized deductions such as unreimbursed employee business expenses and medical/dental expenses on their customers’ personal tax returns.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
-