District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Criminal Division’s Computer Crime and Intellectual Property Section Celebrates 20 YearsRead the Press Release
This October marks the 20th year for the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), which is responsible for implementing the Justice Department’s national strategies in combating computer and intellectual property crimes worldwide.
“CCIPS is the cornerstone of the department’s anti-cybercrime efforts, and has been involved in one capacity or another in practically every significant cybercrime and intellectual property case that has been in the public eye,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “And CCIPS has been performing that role for 20 years, long before terms like ‘data breach’ or the ‘darknet’ became common references.”
CCIPS was established on Oct. 13, 1996, from an earlier five-attorney “Computer Crime Unit” formed in 1991 within the division’s General Litigation and Legal Advice Section. In 20 years, CCIPS’s membership has grown to more than 40 attorneys, in addition to nine digital investigative analysts who comprise the CCIPS Cybercrime Lab. Section attorneys regularly run complex investigations; resolve unique legal and investigative issues raised by emerging computer and telecommunications technologies; litigate cases; provide litigation support to other prosecutors; train federal, state and local law enforcement personnel; comment on and propose legislation; promote cybersecurity; and initiate and participate in international efforts to combat computer and intellectual property crime.
Since 1996, the section has prosecuted cases involving hundreds of millions of pieces of stolen information, including credit card and debit card numbers, email addresses, social security numbers and other personally identifying information; hundreds of millions of dollars of trade secrets, including highly sensitive technologies and agricultural products; tens of millions of counterfeit products and copyrighted works, ranging from pharmaceutical products and military supplies to digital media; and millions of compromised computers victimized by botnets and ransomware.
CCIPS’s litigation accomplishments, in partnership with prosecutors in U.S. Attorneys’ Offices across the country, include prosecutions of sophisticated hackers, such as the conviction of hacker Albert Gonzalez who, along with co-conspirators, infiltrated the computer networks of major retailers around the country and stole in excess of 40 million credit/debit card numbers; the disruption of the Gameover Zeus botnet and Cryptolocker ransomware scheme in connection with the indictment of Russian alleged cybercriminal Evgeniy Bogachev; and the takedown of Megaupload.com and indictment of its operator, Kim Dotcom, for allegedly running the largest worldwide online digital piracy conspiracy in history. In cooperation with U.S. Attorneys’ Offices and international partners, the section has played a central role in cutting-edge international operations against “dark market” websites hosted on the Tor network.
CCIPS has also worked to protect the privacy of Americans by prosecuting privacy invasions by criminals such as hackers, cyberstalkers, sextortionists and purveyors of mobile spyware. In addition, CCIPS works diligently to assure the fair and appropriate use of law enforcement investigative authorities. CCIPS has regularly updated its search and seizure manual to educate investigators and prosecutors about the legal issues surrounding search and seizure of computers and gathering of electronic evidence. Over the years, CCIPS has contributed to Department of Justice policies promoting the effective and responsible use of evolving technologies, such as cell site simulators and drones.
Over its 20 years, CCIPS has played a transformative role in addressing the increasingly international nature of computer crime and digital evidence. In 1997, the section helped form the G8 24/7 High Tech Crime Network, which created formal points of contact in participating countries for urgent assistance with international investigations involving electronic evidence. CCIPS has served as the 24/7 Network point of contact for the United States since that time, assisting in emergency responses to criminal and terrorist incidents abroad. From 1999 to 2001, CCIPS was part of the team that negotiated the Convention on Cybercrime, also known as the Budapest Convention, the world’s first international treaty governing cross-border cybercrime and electronic evidence, which now boasts 50 member countries.
CCIPS also acts as a focal point for national and global networks of trained computer and intellectual property crime prosecutors. The section coordinates the nationwide Computer Hacking and Intellectual Property prosecutor network, which is made up of dedicated computer and IP crime prosecutors in every U.S Attorney’s Office. In cooperation with the Office of Overseas Prosecutorial Development and Training, CCIPS also manages regional Intellectual Property Law Enforcement Coordinator placements around the world.
New initiatives like the Cybersecurity Unit represent CCIPS’s continued dedication to its role as a central hub for expert advice and legal guidance in a variety of areas, including best practices for victim response and reporting of cyber incidents, analysis of the implications of emerging technological changes like the Internet of Things, and white papers on topics such as information sharing and reports on active defense.
“The section has shown a truly remarkable ability to respond to emerging threats and rapid technological change,” said Assistant Attorney General Caldwell. “In the next 20 years, I expect that CCIPS will continue to be a leader for the department.”
Texas Man Sentenced to Prison for Filing False Tax Returns and Corruptly Endeavoring to Impede the Internal Revenue LawsRead the Press Release
An Austin, Texas businessman was sentenced today to 72 months in prison following his conviction on filing false tax returns and corruptly endeavoring to impede the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
Victor Antolik, 57, owned and operated a commercial janitorial business with locations in Austin, San Antonio and Houston, Texas, under a variety of business names, including Diversified Building Services Inc., DBS Services Inc., Partners in Cleaning, PIC Building Services and BSI Industries. Antolik also earned income as a real estate agent, real estate broker and property manager. Antolik earned a portion of his real estate income through his companies SGN Realty Inc. and Signature Realty Services. Antolik submitted to the Internal Revenue Service (IRS) false individual income tax returns on which he underreported his income for tax years 2004, 2007 and 2008. In addition, between 1998 and 2014, Antolik attempted to obstruct the due administration of the internal revenue laws by, among other things, attaching altered Forms W-2 and 1099 to his tax returns, providing false information to his accountants that was used to prepare corporate and individual income tax returns on his behalf, and using nominees to conceal income and assets.
In addition to the prison term imposed, Antolik was also ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $916,358.
Principal Deputy Assistant Attorney General Ciraolo thanked agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Robert A. Kemins and David Zisserson, who prosecuted the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Western District of Texas for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Fayez Sarofim to Pay $720,000 Civil Penalty for Violating Antitrust Premerger Notification RequirementsRead the Press Release
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission, filed a civil antitrust lawsuit yesterday in U.S. District Court in Washington, D.C., against Fayez Sarofim for violating the premerger notification and waiting period requirements of the Hart-Scott-Rodino (HSR) Act of 1976 when he acquired voting securities of Kinder Morgan Inc., in 2001, 2006 and 2012, and Kemper Corporation in 2007. At the same time, the department filed a proposed settlement, subject to approval by the court, under which Sarofim has agreed to pay a $720,000 civil penalty to resolve the lawsuit.
The HSR Act imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo premerger antitrust review. Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the department. The maximum civil penalty for an HSR violation increased from $16,000 per day to $40,000 per day effective Aug. 1.
Further details about this matter are described in the FTC’s press release issued today, and in the attached complaint and competitive impact statement.
Consistent with the requirements of the Tunney Act, the proposed settlement, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Daniel P. Ducore, Special Attorney, United States, c/o Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, D.C. 20580. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
Sarofim CIS
Sarofim Complaint
Sarofim Explanation
Sarofim PFJ
Sarofim Stipulation
Tuna Vessel Operator Convicted for Oil Discharges Off American SamoaRead the Press Release
An American tuna fishing company that regularly unloaded its catch in American Samoa, was convicted and sentenced today for discharging oil into the South Pacific and for maintaining false records, announced Assistant Attorney General John C. Cruden of the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Channing D. Phillips for the District of Columbia. The company, Pacific Breeze Fisheries LLC, owned the Fishing Vessel F/V Pacific Breeze, a tuna purse seiner that was responsible for the pollution.
Pacific Breeze Fisheries admitted that its engineers failed to document the illegal dumping of oily bilge water into the waters off American Samoa without the use of required pollution prevention equipment. These discharges occurred on at least two occasions, in 2014 and 2015, before the vessel brought fish to a cannery in the port of Pago Pago, American Samoa.
The company further admitted that between October 2013 and July 2015, senior engineers regularly failed to accurately record the transfer and disposal of oil waste in the vessel’s Oil Record Book. The U.S. Coast Guard relies on such records to determine whether vessels are illegally dumping oil at sea. As a result, tons of oil sludge, waste oil and oily bilge water that were produced by the vessel remain unaccounted for.
The company pleaded guilty before U.S. District Court Judge Tanya S. Chutkan for the District of Columbia to four felony violations of the Act to Prevent Pollution from Ships, for failing to accurately maintain an Oil Record Book and for illegally discharging oily bilge water into the South Pacific. Under the terms of the plea agreement, the company will pay a $1.6 million fine, in addition to a community service payment of $400,000 for use in the National Marine Sanctuary of American Samoa. Though Pacific Breeze Fisheries does not currently manage any active fishing vessels, the company also agreed to implement an extensive environmental compliance plan in the event it resumes operations.
On Oct. 25, Jeon Seon Han, the former Chief Engineer of the F/V Pacific Breeze, pleaded guilty in the District of Hawaii for his role in obstructing the U.S. Coast Guard inspection of the vessel in American Samoa in 2015. Han admitted to lying to U.S. Coast Guard inspectors about the disposal of sludge and to ordering the disassembly of an illegal discharge system before the inspection. Sentencing for Han is scheduled for February 2017.
The case against Pacific Breeze Fisheries was investigated by U.S. Coast Guard personnel in American Samoa, Honolulu, Hawaii, and the District of Columbia. The case was prosecuted by Senior Trial Attorney Kenneth E. Nelson and Trial Attorney Brendan Selby of the Environmental Crimes Section and Assistant U.S. Attorney Frederick W. Yette of the U.S. Attorney’s Office for the District of Columbia.
President Obama Grants CommutationsRead the Press Release
Today, the President granted commutation of sentence to the following 98 individuals:
· David Alan Aldridge – Odessa, TX
Offense: Conspiracy to manufacture 50 grams or more of actual methamphetamine and possession of pseudoephedrine with intent to manufacture methamphetamine; possession with intent to distribute a quantity of methamphetamine; possession of equipment, chemicals, products and materials to manufacture methamphetamine; possession of a detectable amount of methamphetamine; purchasing more than nine (9) grams of ephedrine or pseudoephedrine during a 30 day period (six counts); Western District of Texas
Sentence: Life imprisonment; 10 years’ supervised release; $35,000 fine (August 13, 2009)Commutation Grant: Prison sentence commuted to a term of 151 months’ imprisonment, and unpaid balance of the $35,000 fine remitted, conditioned upon enrollment in residential drug treatment.
· Marvin D. Anthony, Sr. – Camden, AR
Offense: Conspiracy to distribute 50 grams or more of cocaine base; distribution of cocaine base; Western District of Missouri
Sentence: Life imprisonment; six years’ supervised release (November 19, 2007)Commutation Grant: Prison sentence commuted to a term of 262 months’ imprisonment.
· Darnell C. Billings – Dolton, IL
Offense: Distribution of 50 or more grams of cocaine base; Central District of Illinois
Sentence: Life imprisonment (May 25, 2007)Commutation Grant: Prison sentence commuted to a term of 188 months’ imprisonment.
· Kevin Bivins – Niagara Falls, NY
Offense: Conspiracy to possess with intent to distribute and distribution of five kilograms or more of cocaine; conspiracy to possess with intent to distribute and distribution of 50 grams or more of cocaine base; possession with intent to distribute and distribution of cocaine base; use of a communication facility to commit a drug trafficking offense (eight counts); Western District of New York
Sentence: 168 months’ imprisonment; 10 years’ supervised release (January 11, 2002); amended to 240 months’ imprisonment (on remand) (July 18, 2003)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Edward Lionel Blake – Houston, TX
Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base, aiding and abetting; Southern District of Texas
Sentence: 360 months’ imprisonment; five years’ supervised release; $1,000 fine (November 24, 1998)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Wallace Bourgeois, Jr. – LaPlace, LA
Offense: 1. Conspiracy to distribute and to possess with the intent to distribute 50grams or more of cocaine base ("crack"); Eastern District of Louisiana
2. Wire fraud; Eastern District of Louisiana
Sentence: 1. 240 months’ imprisonment; 10 years’ supervised release (January 7,2010)
2. 12 months’ imprisonment (concurrent); three years’ supervised release (concurrent) (April 28, 2010)
Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Damon Brightman – Goose Creek, SC
Offense: Conspiracy to possess with intent to distribute and distribution of five kilograms or more of cocaine and 50 grams or more of cocaine base; District of South Carolina
Sentence: Life imprisonment; 10 years’ supervised release (March 22, 2006)Commutation Grant: Prison sentence commuted to a term of 210 months’ imprisonment.
· Shane Derek Brown – Key West, FL
Offense: Possession with intent to distribute 50 grams or more of crack cocaine; Southern District of Florida
Sentence: 262 months’ imprisonment; five years’ supervised release (January 28, 2002)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· James Holman Browning, Jr. – Mebane, NC
Offense: Conspiracy: Distributed cocaine base ("crack"); distributed crack (two counts); Middle District of North Carolina
Sentence: Life imprisonment; 10 years’ supervised release (December 19, 2003)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Mark Lamont Byrd – St. Louis, MO
Offense: Possession with intent to distribute in excess of five grams of cocaine base; possession of a firearm during and in relation to a drug trafficking crime; possession with intent to distribute in excess of 50 grams of cocaine base; Eastern District of Missouri
Sentence: 180 months’ imprisonment; five years’ supervised release (May 19, 2006)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· David Carroll – Arlington, VA
Offense: Distribution of crack cocaine (seven counts); distribution of cocaine (two counts); possess with intent to distribute crack cocaine; Eastern District of Virginia
Sentence: Life imprisonment; 10 years’ supervised release (June 9, 1995)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Derrick Dante Clark – Cocoa, FL
Offense: Conspiracy to possess with intent to distribute and distribution of cocaine base; possession with intent to distribute and distribution of cocaine base; Middle District of Florida
Sentence: 240 months’ imprisonment; 10 years’ supervised release (June 25, 2007)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Kevin Wayne Daniels – Austin, TX
Offense: Possession with intent to distribute 50 grams or more of methamphetamine; felon in possession of a firearm; Western District of Texas
Sentence: 240 months’ imprisonment; 10 years’ supervised release (January 23, 2009)Commutation Grant: Prison sentence commuted to 175 months’ imprisonment, conditioned upon enrollment in residential drug treatment.
· Israel John Patrick Davis – Oklahoma City, OK
Offense: Conspiracy to possess with intent to distribute and distribute a controlled substance; District of North Dakota
Sentence: 204 months’ imprisonment; five years’ supervised release (January 22, 2009); amended to 163 months’ imprisonment (January 25, 2016)Commutation Grant: Prison sentence commuted to expire on October 27, 2017.
· Anthony D. Dorsey – Kansas City, MO
Offense: Possession with intent to distribute a mixture or substance containing cocaine base in an amount of 50 grams or more; Western District of Missouri
Sentence: 240 months’ imprisonment; 10 years’ supervised release (August 23, 2007)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Juan Antonio Duenas – San Antonio, TX
Offense: Possess with intent to distribute, more than 50 grams of methamphetamine; Southern District of Texas
Sentence: 240 months’ imprisonment; 10 years’ supervised release (September 24, 2003)Commutation Grant: Prison sentence commuted to October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Charlton Oriaso Esekhigbe – Missouri City, TX
Offense: Possession with intent to distribute 50 grams or more of cocaine base; felon in possession of a firearm; Southern District of Texas
Sentence: 240 months’ imprisonment; 10 years’ supervised release (February 17, 2006)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· John Aundo Gamble – Myrtle Beach, SC
Offense: Possession with intent to distribute five grams or more of cocaine base and a quantity of cocaine; felon in possession of a firearm and ammunition; using, carrying and possessing a firearm during and in furtherance of a drug trafficking crime; District of South Carolina
Sentence: 240 months’ imprisonment; five years’ supervised release (August 31, 2004)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Miguel Garcia – Perley, MN
Offense: Conspiracy to possess with intent to distribute and distribute controlled substances; possession with intent to distribute a controlled substance; District of North Dakota
Sentence: Life imprisonment; 10 years’ supervised release (September 28, 2006)Commutation Grant: Prison sentence commuted to a term of 360 months’ imprisonment.
· Ignatizo Giuliano – Fort Lauderdale, FL
Offense: Knowingly conspiring with other persons to distribute and to possess with intent to distribute five kilograms or more of cocaine; Middle District of Florida
Sentence: Life imprisonment; 10 years’ supervised release (November 4, 1991)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Stephen Runea Glenn – Houston, TX
Offense: Possession with intent to distribute 50 grams or more of cocaine base, aiding and abetting; possession of a firearm in furtherance of a drug trafficking crime; Southern District of Texas
Sentence: 180 months’ imprisonment; five years’ supervised release (May 14, 2009)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Arandal Derrick Goodley – Midland, TX
Offense: Conspiracy to distribute cocaine base "crack"; possession with intent to distribute a quantity of cocaine base "crack"; laundering of monetary instruments (15 counts); aiding and abetting laundering of monetary instruments (four counts); Western District of Texas
Sentence: Life imprisonment; 10 years’ supervised release (October 22, 1998)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Stephen Joseph Graham – Cumming, GA
Offense: Conspiracy to possess with intent to distribute methamphetamine; possession with intent to distribute methamphetamine; Northern District of Georgia
Sentence: Life imprisonment; 10 years’ supervised release (September 17, 2002)Commutation Grant: Prison sentence commuted to a term of 360 months’ imprisonment.
· Wayne Gross – St. Louis, MO
Offense: Unlawful user of controlled substances while in possession of firearms; possession with the intent to distribute cocaine base (crack); carrying a firearm during and in relation to a drug trafficking crime; Eastern District of Missouri
Sentence: 248 months’ imprisonment; four years’ supervised release (April 2, 2004)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Robert Sedillo Gutierrez – Roswell, NM
Offense: 1. Possession with intent to distribute 500 grams and more of a mixtureand substance containing a detectable amount of methamphetamine, its salts, isomers, and salts of its isomers; District of New Mexico
2. Supervised release violation (attempt to possess with intent to distribute more than 500 grams of cocaine); District of New Mexico
Sentence: 1. 360 months’ imprisonment; 10 years’ supervised release (August 7,2006)
2. 18 months’ imprisonment; two years’ supervised release (concurrent) August 7, 2006)
Commutation Grant: Prison sentence commuted to a term of 210 months’ imprisonment.
· Ishon D. Hardin – Knoxville, TN
Offense: Conspiracy to distribute and possession with intent to distribute five kilograms or more of a substance containing cocaine hydrochloride and cocaine base; possession with intent to distribute cocaine; Eastern District of Tennessee
Sentence: 292 months’ imprisonment; 10 years’ supervised release (September 24, 2001); amended to 240 months’ imprisonment (August 16, 2010)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Robert A. Hearn – Springfield, IL
Offense: Possession with intent to distribute five or more grams of a mixture or substance containing cocaine base (crack); Central District of Illinois
Sentence: 360 months’ imprisonment; eight years’ supervised release (March 16, 2007)Commutation Grant: Prison sentence commuted to a term of 240 months’ imprisonment, conditioned upon enrollment in residential drug treatment.
· Jamar Henry – Springfield, IL
Offense: Possession of five or more grams of cocaine base "crack" with the intent to distribute; Central District of Illinois
Sentence: 262 months’ imprisonment; eight years’ supervised release (September 2, 2003)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Ferlandis Urben Herod – Memphis, TN
Offense: 1. Conspiracy to possess with intent to distribute five kilograms or more of cocaine; possession with intent to distribute five kilograms or more of cocaine; 2. Supervised release violation (conspiracy to possess with intent to distribute cocaine); 1. Middle District of Tennessee; 2. Western District of Tennessee
Sentence: 1. Life imprisonment; 2. 24 months’ imprisonment (consecutive); 10 years’ supervised release (1. July 14, 2005; 2. December 19, 2005)Commutation Grant: Prison sentence commuted to a term of 264 months’ imprisonment.
· Olynthia Louise Hinton – Chester, SC
Offense: Possession with intent to distribute a quantity of cocaine and 50 grams or more of cocaine base; District of South Carolina
Sentence: 240 months’ imprisonment; 10 years’ supervised release (February 15, 2006)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· James Holmes – Nashville, TN
Offense: Conspiracy to possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of cocaine base; maintaining a place for the purpose of manufacturing and distributing a mixture and substance containing a detectable amount of cocaine base; Northern District of Alabama
Sentence: 240 months’ imprisonment; 10 years’ supervised release (February 16, 2005)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Antonio Hood – Lancaster, SC
Offense: Conspiracy to possess with intent to distribute and distribution of five kilograms or more of cocaine and 50 grams or more of cocaine base; District of South Carolina
Sentence: Life imprisonment; 10 years’ supervised release (February 2, 2005)Commutation Grant: Prison sentence commuted to a term of 240 months’ imprisonment.
· William D. Hoopingarner – Marshall, IL
Offense: Conspiracy to distribute in excess of 500 grams of methamphetamine (mixture); Southern District of Indiana
Sentence: 168 months’ imprisonment; five years’ supervised release (April 25, 2008); amended to 135 months’ imprisonment (January 12, 2016)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Donnie Keith Howell – Goldsboro, NC
Offense: Conspiracy to possess and distribute cocaine base; distribution of cocaine base; Eastern District of North Carolina
Sentence: Life imprisonment; five years’ supervised release (March 13, 1995)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Andre M. Huggins – Bear, DE
Offense: Distribution of cocaine (two counts); conspiracy to distribute more than five kilograms of cocaine; maintaining a dwelling to distribute cocaine; money laundering (two counts); District of Delaware
Sentence: 240 months’ imprisonment; 10 years’ supervised release (August 21, 2006)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Tony Orlando Hughes – Newport News, VA
Offense: Conspiracy to possess with intent to distribute and distribute cocaine and cocaine base; distribute cocaine base (22 counts); distribute cocaine (two counts); possession of firearm during and in relation to a drug trafficking crime (eight counts); possess with intent to distribute cocaine (three counts); Eastern District of Virginia
Sentence: 2,616 months’ imprisonment; 10 years’ supervised release (November 29, 2004)Commutation Grant: Prison sentence commuted to a term of 360 months’ imprisonment.
· Virgilio Jimenez – Manhattan, NY
Offense: Possession with intent to distribute five grams or more of cocaine base ; District of Rhode Island
Sentence: 292 months’ imprisonment; eight years’ supervised release (March 23, 2006)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Alphonso Johnson – Orlando, FL
Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base; Middle District of Florida
Sentence: 360 months’ imprisonment; five years’ supervised release (July 2, 1999)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Gerald Jerome Johnson – Jamestown, ND
Offense: Possession with intent to distribute a controlled substance; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by a convicted felon; District of North Dakota
Sentence: Life plus 25 years’ imprisonment (October 10, 2006)Commutation Grant: Prison sentence commuted to a term of 300 months’ imprisonment.
· Tony O’Neal Johnson – Mexia, TX
Offense: Possession with intent to distribute at least five grams of cocaine base (three counts); Western District of Texas
Sentence: 292 months’ imprisonment; eight years’ supervised release, $3,000 fine (June 22, 2005); amended to 210 months’ imprisonment (May 16, 2007)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, and unpaid balance of $3,000 fine remitted, conditioned upon enrollment in residential drug treatment.
· Charles Jermaine Keitt – Orangeburg, SC
Offense: Possession with intent to distribute 5 grams or more of cocaine base and a quantity of cocaine, and a quantity of marijuana; District of South Carolina
Sentence: 262 months’ imprisonment; eight years’ supervised release (September 23, 2008)Commutation Grant: Prison sentence commuted to a term of 151 months’ imprisonment.
· Jaleel Abdul Lafi, III – Hopkins Park, IL
Offense: Distribution of five or more grams of cocaine base ("crack") (three counts); distribution of 50 or more grams of cocaine base ("crack"); possession of a firearm in relation to drug trafficking crime; Central District of Illinois
Sentence: 180 months’ imprisonment; five years’ supervised release (February 17, 2009)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Bobby Earl Lee – St. Petersburg, FL
Offense: Possession with the intent to distribute 50 grams or more of cocaine base; possession with the intent to distribute five grams or more of cocaine base; possession of a firearm in relation to a drug trafficking crime; Middle District of Florida
Sentence: Life plus 60 months’ imprisonment (September 16, 1994)Commutation Grant: Prison sentence commuted to a term of 360 months’ imprisonment, conditioned upon enrollment in residential drug treatment.
· Edward Monroe Little – Maiden, NC
Offense: Conspiracy to possess with intent to distribute quantities of cocaine and cocaine base; possessing with intent to distribute, a quantity of cocaine base, and aiding and abetting; Western District of North Carolina
Sentence: Life imprisonment; 10 years’ supervised release (January 10, 2005)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· John Lockett – Houston, TX
Offense: Conspiracy to possess with intent to distribute crack cocaine; possession with intent to distribute crack cocaine (two counts); Southern District of Texas
Sentence: Life imprisonment; 10 years’ supervised release; $5,000 fine (September 26, 1997)Commutation Grant: Prison sentence commuted to expire on February 24, 2017 and unpaid balance of the $5,000 fine remitted.
· Alberto Lopez – Gardner, MA
Offense: Conspiracy to possess heroin and cocaine base with intent to distribute; possession of heroin with intent to distribute and distribution of heroin; possession of cocaine base with intent to distribute and distribution, aiding and abetting (three counts); District of Massachusetts
Sentence: Life imprisonment; six years’ supervised release (June 4, 1996)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Rico Mayo – Benicia, CA
Offense: Possession of five or more grams of cocaine base; use of a firearm during and in relation to a drug trafficking crime; possession with intent to distribute cocaine base; Eastern District of California
Sentence: 420 months’ imprisonment; five years’ supervised release (February 9, 1998)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· James A. McKines – Las Vegas, NV
Offense: Conspiracy to possess with intent to distribute phencyclidine (PCP); possession with intent to distribute PCP; interstate travel in aid of racketeering; Western District of Missouri
Sentence: Life imprisonment; 10 years’ supervised release; $40,000 fine (November 2, 1989)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Otis McRay – Satsuma, FL
Offense: Conspiracy to distribute 5 kilograms or more of cocaine and 50 grams or more of cocaine base; distribution of 5 grams or more of cocaine base (two counts); Middle District of Florida
Sentence: Life imprisonment; eight years’ supervised release (November 26, 2001)Commutation Grant: Prison sentence commuted to a term of 240 months’ imprisonment, conditioned upon enrollment in residential drug treatment.
· Terrance Ramon Merritt – Fort Walton Beach, FL
Offense: Conspiracy to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 50 grams or more of a mixture and substance containing cocaine base; 3,4 methylenedioxymethamphetamine (MDMA) and marijuana; possession with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine, a detectable amount of MDMA and a detectable amount of marijuana; possession of a firearm by a convicted felon; Northern District of Florida
Sentence: Life imprisonment; 10 years’ supervised release (March 15, 2007)Commutation Grant: Prison sentence commuted to a term of 262 months’ imprisonment, conditioned upon enrollment in residential drug treatment.
· Thomas Lee Miller – Emmons, MN
Offense: Manufacturing or attempt to manufacture five grams or more of actual (pure) methamphetamine within 1,000 feet of a protected location after having a prior felony drug conviction; Northern District of Iowa
Sentence: 360 months’ imprisonment; 16 years’ supervised release (December 18, 2003)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Jose Flores Molina – Nampa, ID
Offense: Possession with intent to distribute heroin; possession with intent to distribute methamphetamine; District of Idaho
Sentence: 360 months’ imprisonment; eight years’ supervised release, $3,000 fine (January 30, 2003)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Ernest Moore, Jr. – Tuskegee, AL
Offense: Distribution of cocaine base (two counts); possession with intent to distribute cocaine base (two counts); carrying a firearm in connection with a drug trafficking offense; Middle District of Alabama
Sentence: 180 months’ imprisonment; five years’ supervised release (February 17, 2005)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Michael Howard Motes – Wilmington, NC
Offense: Conspiracy to distribute and possess with intent to distribute methamphetamine and amphetamine; possession with intent to distribute methamphetamine and amphetamine; Northern District of Georgia
Sentence: Life imprisonment; 10 years’ supervised release; $10,000 fine (June 30, 1999)Commutation Grant: Prison sentence commuted to a term of 360 months’ imprisonment and unpaid balance of the $10,000 fine remitted.
· Randall C. Moyer – Salt Lake City, UT
Offense: Attempted manufacture of 50 grams or more of actual methamphetamine; District of Utah
Sentence: 240 months’ imprisonment; five years’ supervised release; $2,729.97 restitution (July 25, 2006)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, and unpaid balance of $2,729.97 restitution obligation remitted, conditioned upon enrollment in residential drug treatment.
· Francisco Navarro – San Diego, CA
Offense: Importation of heroin; possession of heroin with intent to distribute; Southern District of California
Sentence: 240 months’ imprisonment; 10 years’ supervised release (August 11, 2008)Commutation Grant: Prison sentence commuted to a term of 168 months’ imprisonment.
· David Neighbors – Evansville, IN
Offense: Conspiracy to distribute 50 grams or more of cocaine base and less than 500 grams of cocaine hydrochloride; distribution of five grams or more of cocaine base (two counts); possession with intent to distribute more than 50 grams of cocaine base; Southern District of Indiana
Sentence: Life imprisonment; 10 years’ supervised release (December 17, 2008)Commutation Grant: Prison sentence commuted to a term of 360 months’ imprisonment.
· Larry Anthony Nesby – Cairo, IL
Offense: Conspiracy to distribute 50 grams or more of cocaine base (two counts); Southern District of Illinois
Sentence: Life imprisonment; $400 fine (October 3, 2002)Commutation Grant: Prison sentence commuted to a term of 360 months’ imprisonment.
· Rasheed Jamal Olds – Kansas City, KS
Offense: Conspiracy to distribute cocaine and crack cocaine; conspiracy to launder money; District of Kansas
Sentence: Life imprisonment; five years’ supervised release (May 7, 1997); amended to 360 months’ imprisonment (October 18, 2011)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Robert O’Neal – Fort Lauderdale, FL
Offense: Conspiracy to possess with intent to distribute crack cocaine; possess with intent to distribute crack cocaine (two counts); Southern District of Florida
Sentence: 240 months’ imprisonment; 10 years’ supervised release (January 24, 2003)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Antonio D. Patrick – Halls, TN
Offense: Possession with intent to distribute and distribution of cocaine base; possession with intent to distribute and distribution of cocaine; Western District of Tennessee
Sentence: 262 months’ imprisonment; five years’ supervised release (October 11, 2002)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Harold Eugene Patton – Morganton, NC
Offense: Conspiracy to possess with intent to distribute cocaine base; Western District of North Carolina
Sentence: Life imprisonment; 10 years’ supervised release (November 19, 2008)Commutation Grant: Prison sentence commuted to a term of 235 months’ imprisonment.
· George Pearson, Jr. – Clearwater, FL
Offense: Conspiracy to possess with intent to distribute 50 grams or more of cocaine base; possession with intent to distribute cocaine base; Middle District of Florida
Sentence: 240 months’ imprisonment; 10 years’ supervised release (July 2, 2004)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Anthony Pender – Laurel, MD
Offense: Possession of a firearm by convicted felon; possession with intent to distribute 50 grams or more of cocaine base; District of Maryland
Sentence: Life imprisonment; 10 years’ supervised release (December 4, 2006)Commutation Grant: Prison sentence commuted to a term of 188 months’ imprisonment, conditioned upon enrollment in residential drug treatment.
· Bobby Clarence Perry – Commerce, GA
Offense: Conspiracy to distribute methamphetamine; conspiracy to distribute cocaine and marijuana; Northern District of Georgia
Sentence: Life imprisonment; 10 years’ supervised release; $5,000 fine (September 13, 1999)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Reisa Lynn Pettiette – Athens, TX
Offense: Conspiracy to manufacture, distribute and possess with intent to manufacture and distribute methamphetamine; conspiracy to possess a listed chemical knowing it will be used to manufacture a controlled substance; possession of a listed chemical with intent to manufacture a controlled substance; possession and distribution of a listed chemical with intent to manufacture a controlled substance; possession of an unregistered firearm; use, carrying, and possession of a firearm in furtherance of a drug trafficking crime; Eastern District of Texas
Sentence: 240 months’ imprisonment; five years’ supervised release (October 16, 2003)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Brett Rolland Poore – Austin, TX
Offense: Conspiracy to possess with intent to distribute more than 50 grams of methamphetamine; possession with intent to distribute more than 50 grams of methamphetamine, aiding and abetting; Western District of Texas
Sentence: 262 months’ imprisonment; five years’ supervised release (September 23, 2005)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Lesean Roberts – Euclid, OH
Offense: Possession with intent to distribute cocaine base, and aiding and abetting; possession with intent to distribute cocaine hydrochloride; Northern District of Ohio
Sentence: Life imprisonment; 10 years’ supervised release (May 22, 2007)Commutation Grant: Prison sentence commuted to a term of 240 months’ imprisonment.
· Darrell E. Robinson – Sacramento, CA
Offense: Conspiracy to distribute at least 50 grams of cocaine base; Eastern District of California
Sentence: 262 months’ imprisonment; five years’ supervised release (August 4, 2006)Commutation Grant: Prison sentence commuted to a term of 188 months’ imprisonment, conditioned upon enrollment in residential drug treatment.
· Charles McKinley Russell, Jr. – Brentwood, MD
Offense: Possession with intent to distribute crack cocaine; District of Maryland
Sentence: 292 months’ imprisonment; 10 years’ supervised release; $1 fine (May 18, 1999)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Ronnie Dean Shelton – Floyd, VA
Offense: Possession of more than five grams of methamphetamine with intent to distribute; Western District of Virginia
Sentence: 188 months’ imprisonment; five years’ supervised release (November 19, 2008)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Alicia Siller – Coleman, TX
Offense: Conspiracy to distribute and possess with intent to distribute more than 500 grams of methamphetamine and aiding and abetting; possession with intent to distribute more than 50 grams or methamphetamine and aiding and abetting; use of a person under 18 years of age in drug operations and aiding and abetting; Northern District of Texas
Sentence: 262 months’ imprisonment; six years’ supervised release (October 24, 2003)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Leon Smallwood – Alton, IL
Offense: Conspiracy to distribute cocaine base; distribution of cocaine base (three counts); felon in possession of a firearm; Southern District of Illinois
Sentence: Life imprisonment; eight years’ supervised release; $2,500 fine (October 2, 1998)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Michael Anthony Smith – Charlottesville, VA
Offense: Possession with intent to distribute cocaine base; Western District of Virginia
Sentence: 360 months’ imprisonment; five years’ supervised release; $500 fine (October 23, 1997)Commutation Grant: Prison sentence commuted to expire on November 26, 2016.
· Oscar A. Smith, Jr. – North Charleston, SC
Offense: Conspiracy to possess with intent to distribute five kilograms or more of cocaine and 50 grams or more of cocaine base ("crack"); District of South Carolina
Sentence: 240 months’ imprisonment; 10 years’ supervised release (July 18, 2005)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Terrence Tyron Smith – Richmond, KY
Offense: Distribution of five grams or more of cocaine base (crack cocaine); possession with the intent to distribute five grams or more of cocaine base (crack cocaine); Eastern District of Kentucky
Sentence: 240 months’ imprisonment; eight years’ supervised release (March 7, 2007)Commutation Grant: Prison sentence commuted to a term of 172 months’ imprisonment.
· Tyrone Lamont Smith – New York, NY
Offense: Conspiracy to distribute cocaine base; Western District of Virginia
Sentence: 360 months’ imprisonment; 10 years’ supervised release (June 12, 1995)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Mervin Spencer – Hahnville, LA
Offense: Possession with intent to distribute cocaine base; distribution of cocaine base (two counts); Eastern District of Louisiana
Sentence: Life imprisonment; 10 years’ supervised release (September 13, 2006)Commutation Grant: Prison sentence commuted to a term of 300 months’ imprisonment.
· Gary Don Starnes – Warsaw, MO
Offense: Possession with intent to distribute 50 grams or more of methamphetamine; Eastern District of Missouri
Sentence: 240 months’ imprisonment; 10 years’ supervised release (January 6, 2010)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Damian Roman Steplight – Dale City, VA
Offense: Conspiracy to distribute 50 grams or more of crack cocaine; Eastern District of Virginia
Sentence: Life imprisonment; 10 years’ supervised release (January 25, 2002)Commutation Grant: Prison sentence commuted to a term of 240 months’ imprisonment.
· Brandon Terrell Stevenson – Gainesville, FL
Offense: Conspiracy to distribute and to possess with intent to distribute more than five kilograms of a mixture and substance containing cocaine and more than 50 grams of a mixture and substance containing cocaine base; Northern District of Florida
Sentence: Life imprisonment; 10 years’ supervised release (October 30, 2009)Commutation Grant: Prison sentence commuted to a term of 210 months’ imprisonment, conditioned upon enrollment in residential drug treatment.
· Edwin Reginald Straughter – Hobe Sound, FL
Offense: Conspiracy to distribute cocaine base; distribution of cocaine base (two counts); possession with intent to distribute cocaine base; Southern District of Florida
Sentence: Life imprisonment; 10 years’ supervised release (February 20, 1996)Commutation Grant: Prison sentence commuted to a term of 360 months’ imprisonment.
· Carlos Stuckey – Apopka, FL
Offense: Conspiracy to distribute and possess with intent to distribute more than 50 grams of cocaine base; Northern District of Florida
Sentence: Life imprisonment; 10 years’ supervised release (February 10, 2009)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Michael Dewayne Tensley – Marianna, FL
Offense: Distribution of more than 50 grams of cocaine base; Northern District of Florida
Sentence: Life imprisonment; 10 years’ supervised release (September 27, 2006)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Jeffery James Terrell – Jasper, AL
Offense: Possession with intent to distribute 50 grams or more of a mixture and substance containing cocaine base; Northern District of Alabama
Sentence: Life imprisonment; 10 years’ supervised release (March 15, 2007)Commutation Grant: Prison sentence commuted to expire on February 24, 2017.
· Lenthius D. Thomas – Ocala, FL
Offense: Conspiracy to distribute and possession with intent to distribute cocaine and cocaine base; Middle District of Florida
Sentence: Life imprisonment; 10 years’ supervised release (June 24, 1998)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Stanley D. Thomasson – Poplar Bluff, MO
Offense: Used/carried firearms during drug trafficking crime (two counts); possession of Schedule II narcotic controlled substance (three counts); Eastern District of Missouri
Sentence: 421 months’ imprisonment; four years’ supervised release (April 5, 1994); amended to 397 months’ imprisonment (June 9, 2015)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Danny Demar Turner – Madison, WI
Offense: Distribution of a mixture or substance containing cocaine base (crack cocaine) (three counts); Western District of Wisconsin
Sentence: 210 months’ imprisonment; three years’ supervised release (August 12, 2008)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Hayzen Turner, Jr. – Adamsville, AL
Offense: Distribution of a mixture and substance containing cocaine base (three counts); distribution of 50 grams or more of a mixture and substance containing cocaine base (two counts); possession with intent to distribute a quantity of a mixture and substance containing cocaine base, cocaine hydrochloride and marijuana; carrying a firearm during and in relation to a drug trafficking offense; felon in possession of a firearm (three counts); Northern District of Alabama
Sentence: Life imprisonment; 10 years’ supervised release (December 18, 2007)Commutation Grant: Prison sentence commuted to a term of 180 months’ imprisonment.
· Mark Walker – Jasper, MO
Offense: Conspiracy to distribute in excess of 500 grams of methamphetamine; Western District of Missouri
Sentence: 235 months’ imprisonment; five years’ supervised release (August 15, 2005)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Kevin Washington – Owensboro, KY
Offense: Conspiracy to possess with intent to distribute and distribute 50 grams or more of cocaine base and 500 grams or more of cocaine; aiding and abetting knowingly and intentionally possess with intent to distribute and distribute 50 grams or more of cocaine base (three counts); Western District of Kentucky
Sentence: 240 months’ imprisonment; 10 years’ supervised release (June 18, 2004)Commutation Grant: Prison sentence commuted to expire on May 1, 2017.
· Kevin Washington – Oxford, NC
Offense: Possession with intent to distribute more than 50 grams of cocaine base (crack); Eastern District of North Carolina
Sentence: Life imprisonment; 10 years’ supervised release (October 11, 2006)Commutation Grant: Prison sentence commuted to a term of 262 months’ imprisonment, conditioned upon enrollment in residential drug treatment.
· Robert Wettstain – Beaver Dam, KY
Offense: Conspiracy to knowingly and intentionally possess with intent to distribute methamphetamine; aiding and abetting knowingly and intentionally possessing with intent to distribute methamphetamine (two counts); Western District of Kentucky
Sentence: Life imprisonment; 10 years’ supervised release (May 15, 2008)Commutation Grant: Prison sentence commuted to a term of 240 months’ imprisonment, conditioned upon enrollment in residential drug treatment.
· Daryl Wilkes – Virginia Beach, VA
Offense: Conspiracy to possess with intent to distribute and to distribute cocaine base and cocaine; knowingly and intentionally distribute cocaine base (20 counts); knowingly possess a firearm in furtherance of a drug trafficking crime (two counts); knowingly and intentionally distribute cocaine (eight counts); knowingly and intentionally possess with intent to distribute cocaine base; knowingly and intentionally possess with intent to distribute cocaine (two counts); Eastern District of Virginia
Sentence: 952 months’ imprisonment; five years’ supervised release (June 16, 2004); amended to 780 months’ imprisonment (October 4, 2006); amended to 480 months’ imprisonment (May 2, 2008)Commutation Grant: Prison sentence commuted to a term of 300 months’ imprisonment.
· Anthony K. Williams – Indianapolis, IN
Offense: Possession with intent to distribute 50 grams or more of cocaine base (mixture); possession of cocaine; Southern District of Indiana
Sentence: 240 months’ imprisonment; 10 years’ supervised release; $500 fine (April 4, 2008)Commutation Grant: Prison sentence commuted to expire on October 27, 2018, conditioned upon enrollment in residential drug treatment.
· Donald Jamal Wilson – Huntington, WV
Offense: Conspiracy to distribute 50 grams or more of cocaine base and quantities of cocaine and heroin; intentionally make available for use, with or without compensation, an apartment for the purpose of storing cocaine base and heroin (two counts) ; Southern District of West Virginia
Sentence: Life imprisonment (March 24, 2008)Commutation Grant: Prison sentence commuted to a term of 188 months’ imprisonment, conditioned upon enrollment in residential drug treatment.
· Bradley Lee Winters – Mason City, IA
Offense: Conspiracy to distribute 50 grams or more of actual methamphetamine; possession with intent to distribute 50 grams or more of actual methamphetamine; Southern District of Iowa
Sentence: 360 months’ imprisonment; 10 years’ supervised release (March 18, 2009)Commutation Grant: Prison sentence commuted to a term of 240 months’ imprisonment, conditioned upon enrollment in residential drug treatment.
· William Abel Yates – Durham, NC
Offense: Possess with intent to distribute cocaine base (crack); Middle District of North Carolina
Sentence: Life imprisonment; 10 years’ supervised release (August 24, 1998)Commutation Grant: Prison sentence commuted to a term of 300 months’ imprisonment, conditioned upon enrollment in residential drug treatment.
Owner of Arkansas Juvenile Mental Health Facilities Sentenced to 84 Months in Prison for Bribery SchemeRead the Press Release
The owner of two Arkansas mental health companies that provide inpatient and outpatient mental health services to juveniles was sentenced to serve 84 months in prison today for engaging in a scheme to bribe a former deputy director of the Arkansas Department of Human Services (ADHS), announced Assistant Attorney General Leslie R. Caldwell of the Department of Justice’s Criminal Division.
Theodore E. Suhl, 50, of Warm Springs, Arkansas, was previously convicted of two counts of honest services fraud, one count of federal funds bribery and one count of interstate travel in aid of bribery. In addition to his prison sentence, Suhl was ordered to pay a $200,000 fine.
The evidence presented at trial showed that Suhl bribed former deputy director of ADHS, Steven B. Jones, using intermediaries Phillip W. Carter and a local pastor. Beginning in approximately April 2007, Suhl, Jones and Carter periodically met at restaurants in Memphis, Tennessee, or in rural Arkansas in order for Suhl to request assistance for his companies from Jones in his capacity as deputy director of ADHS. Jones agreed to perform official acts that benefitted Suhl and Suhl’s businesses and provided internal ADHS information to Suhl. In exchange for Jones’s agreement to perform official acts, Suhl paid Jones by funneling cash payments through the pastor’s church and providing the bribe payments to Jones in cash so that the transactions would not be easily traceable. Putting Jones on Suhl’s illicit payroll paved the way for more than $1.5 million in profits for Suhl’s juvenile mental health counseling business.
Jones pleaded guilty to federal funds bribery and conspiracy for his involvement in the scheme and was sentenced to 30 months in prison. Carter pleaded guilty to conspiracy to commit federal funds bribery and honest services wire fraud and was sentenced to 24 months in prison.
The FBI’s Little Rock Field Office investigated the case. Trial Attorneys John D. Keller, Lauren Bell and Amanda R. Vaughn of the Criminal Division’s Public Integrity Section prosecuted the case.
Georgia Man Sentenced to Prison for Theft of Public Money and Aggravated Identity TheftRead the Press Release
A Marietta, Georgia resident was sentenced today to 45 months in prison for using stolen identities to fraudulently obtain income tax refunds, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney John A. Horn for the Northern District of Georgia.
Peter Isika, 46, pleaded guilty on June 30 to theft of public money and aggravated identity theft. During 2013 and 2014, Isika filed at least 50 false income tax returns with the Internal Revenue Service (IRS) using stolen identities that he purchased over the Internet. Isika directed the fraudulently obtained tax refunds to prepaid debit cards and bank accounts that he controlled.
In addition to the term of prison imposed, Isika was ordered to serve three years of supervised release and to pay restitution to the IRS in the amount of $419,810.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Horn commended special agents of IRS-Criminal Investigation and U.S. Treasury Inspector General for Tax Administration, who conducted the investigation, and Trial Attorneys Jason Poole and Mara Strier of the Tax Division and Assistant U.S. Attorney Kamal Ghali, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Florida Man Pleads Guilty in Hacking, Spamming Scheme That Used Stolen Email AccountsRead the Press Release
A Boca Raton, Florida, man pleaded guilty in a New Jersey federal court for his role in a computer hacking and identity theft scheme that hijacked customer email accounts to send bulk unsolicited or “spam” emails, and generated more than $1.3 million in illegal profits.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division andU.S. Attorney Paul J. Fishman of the District of New Jersey made the announcement.
Timothy Livingston, 31, pleaded guilty before U.S. District Judge William J. Martini of the District of New Jersey. Sentencing is scheduled for Jan. 27, 2017.
According to admissions made in connection with his plea agreement, beginning as early as 2011, Livingston operated A Whole Lot of Nothing LLC — a business that specialized in sending unsolicited or spam emails on behalf of its clients. Livingston admitted that his clients included legitimate businesses, such as insurance companies that wished to send bulk emails for advertising purposes, as well as illegal entities, such as online pharmacies that sold narcotics without prescriptions.
Livingston admitted that beginning in January 2012, he solicited Tomasz Chmielarz to write computer programs that would send spam in a manner that concealed the true origin of the email and bypass spam filters. Livingston admitted that he then used these programs to transmit spam, and used proxy servers and botnets to remain anonymous, hide the true origin of the spam and evade anti-spam filters and other spam blocking techniques.
According to the plea agreement, Livingston hacked into individual email accounts and utilized corporate mail servers to further his spam campaigns, which enabled him to send out massive amounts of spam without identifying himself as the sender.
In connection with his plea agreement, Livingston consented to the entry of a forfeiture money judgment in the amount of $1,346,442, as well as the forfeiture of property obtained using illegal proceeds from the scheme, including a 2009 Cadillac Escalade and a 2006 Ferrari F430 Spider.
Chmielarz, 33, of Rutherford, New Jersey, pleaded guilty for his role in the conspiracy before Judge Martini on June 2.
The FBI’s Cyber Division investigated the case. Senior Trial Attorney William A. Hall Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Daniel Shapiro of the District of New Jersey’s Computer Hacking and Intellectual Property Section of the Economic Crimes Unit and Assistant U.S. Attorneys Peter Gaeta and Sarah Devlin of the District of New Jersey’s Asset Forfeiture-Money Laundering Unit prosecuted the case.
Federal Court Permanently Shuts Down South Carolina Liberty Tax Service FranchiseeRead the Press Release
A federal court in Columbia, South Carolina, has permanently barred a Liberty Tax Service franchise owner from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order prohibits Christopher Paul Haynes from acting as a federal tax return preparer and from supervising, managing or employing federal tax return preparers. In addition, Haynes must provide the government with a list of all customers for whom Haynes or his business prepared a tax return for any tax year from 2010 to present. Haynes agreed to the civil injunction order entered against him.
On Feb. 8, the government filed suit against Haynes and alleged that he and his employees prepared false federal income tax returns in order to increase customers’ refunds at Haynes’s three Columbia-area Liberty Tax Service franchises. According to the government's complaint, Haynes and his employees prepared tax returns that included false or inflated income and expenses on Schedule C (Profit or Loss From Business), bogus dependents, false filing statuses and improper unreimbursed employee business expenses.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. 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.
Deputy Attorney General Sally Q. Yates Statement on the President’s Recent Clemency DecisionsRead the Press Release
Deputy Attorney General Sally Q. Yates released the following statement after President Obama granted commutation of sentence to 98 individuals:
“Today’s clemency grants to another 98 federal inmates who were sentenced under outdated drug laws are part of our ongoing commitment to bring fairness to our criminal justice system. These grants reflect the Department’s accelerated progress in prioritizing and reviewing petitions that fit the President’s Clemency Initiative. As we’ve said before, the Department of Justice remains committed to reviewing and providing a recommendation on every petition submitted by August 31 of this year that involves a drug crime. And we will continue to prioritize the review any drug related petitions that have been submitted since that time.”
Readout of Attorney General Loretta E. Lynch Meeting with Turkish Minister of Justice Bekir BozdağRead the Press Release
Attorney General Loretta E. Lynch and Turkish Minister of Justice Bekir Bozdağ met today to discuss law enforcement and counterterrorism cooperation between the United States and Turkey, including cooperation on extradition. In particular, the Attorney General and the Minister of Justice discussed that, pursuant to the U.S./Turkey Extradition Treaty, in both countries extraditions are subject to the judicial process, and accordingly must meet the evidentiary standards of the requested country. The Attorney General and the Minister of Justice both pledged that their departments will continue their ongoing close and full cooperation.
Press Release by United States Attorney Relating to November 2016 ElectionsRead the Press Release
United States Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands (NMI) announced today that Assistant United States Attorney (AUSA) Marivic David will lead the efforts of her office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016 general elections. AUSA David has been appointed to serve as the District Election Officer (DEO) for the District of Guam and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Limtiaco said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Limtiaco stated that AUSA/DEO Marivic David will be on duty while the polls are open. She can be reached by the public at the following telephone number: 671-479-4120.
In addition, the FBI will have Special Agents available in each Field Office and Resident Agency throughout the country to receive allegations of election fraud and other election abuses on election day. The FBI can be reached by the public by calling 671-688-0373.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Limtiaco said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Michigan Owners of Sixteen Adult Foster Care Homes Indicted for Failure to Pay Employment TaxesRead the Press Release
A federal grand jury returned an indictment on Oct. 19 and unsealed today, charging the owners of adult foster care homes located throughout Michigan with 60 counts of failing to account for and pay over employment taxes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to the indictment, Jeremiah and Nicolette Cheff of Grand Blanc, Michigan, controlled the financial and business operations of 16 foster care homes, including Hunter’s Home, Nico’s Place, Harmony Manor, Hilltop Estates and Deerwood Manor, which cared for individuals with mental illnesses and developmental and physical disabilities. It is alleged that from September 2010 through September 2014, the Cheffs withheld payroll taxes from their employees’ paychecks, failed to timely file employment tax returns, and failed to pay over the funds they withheld to the Internal Revenue Service (IRS).
If convicted, the Cheffs face a statutory maximum penalty of five years in prison for each count charged in the indictment, as well as a period of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Jeffrey A. McLellan and Carl F. Brooker, IV of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of Michigan for its substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Settles Pregnancy and Disability Discrimination Lawsuit Against City of Florence, KentuckyRead the Press Release
The Justice Department filed a proposed consent decree with the city of Florence, Kentucky, to resolve a pregnancy and disability discrimination lawsuit brought by the department under Title VII of the Civil Rights Act of 1964 and Title I of the Americans with Disabilities Act (ADA).
According to the department’s complaint, Florence discriminated against two pregnant police officers by denying both officers’ requests for light duty. The department alleges that Florence previously assigned light duty positions to employees who were temporarily unable to perform their regular job duties, regardless of why the employee needed light duty. In April 2013, within months of a police officer’s pregnancy-related light duty request, Florence limited light duty to employees with on-the-job injuries. Florence also required that employees with non-work-related illnesses, injuries or conditions demonstrate that they had “no restrictions” before they could return to work.
In 2014, according to the department’s complaint, Police Officers Lyndi Trischler and Samantha Riley requested light duty when they were unable to perform their duties as patrol officers due to their pregnancies. Officer Trischler, who was diagnosed with a high-risk pregnancy and suffered complications, also requested light duty as a reasonable accommodation for her pregnancy-related disability. Florence denied the requests and required each to take leave. After placing Officers Trischler and Riley on leave, Florence continued to grant light duty to other employees who were similar in their ability or inability to work.
This is the department’s first lawsuit challenging a discriminatory light duty policy since the U.S. Supreme Court’s ruling regarding light duty policies and pregnant employees in Young v. United Parcel Service. It is also the department’s first lawsuit challenging disability-related “no restrictions” policies in the workplace.
“No woman should ever have to choose between having a family and earning a salary,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Equally important, individuals with disabilities who need reasonable accommodations deserve an opportunity to keep their jobs. The Justice Department will continue working tirelessly to protect pregnant women against unlawful discrimination in the workplace.”
Under the consent decree, which still must be approved by the U.S. District Court for the Eastern District of Kentucky, Florence will adopt new policies that allow accommodations, including light duty, for pregnant employees and employees with disabilities; establish an effective process for receiving and responding to employees’ accommodation requests and discrimination complaints; and ensure the proper maintenance of employee medical records. In addition, Florence will train all supervisors, administrators, officers and employees who participate in making personnel decisions related to light duty and other accommodation requests made pursuant to Title VII and the ADA. Florence has also agreed to pay $135,000 in compensatory damages and attorney’s fees as well as restore the paid leave that Officers Trischler and Riley were forced to use.
“Providing pregnant employees with light duty when appropriate can be a critical reasonable accommodation,” said Chair Jenny R. Yang of the Equal Employment Opportunity Commission (EEOC). “In 2015, the EEOC issued updated pregnancy discrimination guidance explaining that light duty policies that accommodate some workers but refuse to accommodate pregnant women may run afoul of the law. The comprehensive guidance provides information to assist employers in developing, disseminating and enforcing strong policies consistent with the requirements of Title VII and the ADA.”
“We are working closely with our colleagues at the DOJ’s Civil Rights Division and this consent decree is an excellent result of the partnership between the EEOC and the DOJ,” said Director Michelle Eisele of the EEOC’s Indianapolis District Office. “We look forward to future successful collaborations.”
Officers Trischler and Riley are represented by the non-profit advocacy organization, A Better Balance, and the law firm Outten & Golden LLP. They originally filed charges of discrimination with the Equal Employment Opportunity Commission. The EEOC’s Cincinnati Office investigated the charges, determined that there was reasonable cause to believe that discrimination had occurred and referred the charges to the department.
The case is being handled by Trial Attorneys Catherine Sellers of the Civil Rights Division’s Employment Litigation Section and Elaine Grant of the Civil Rights Division’s Disability Rights Section.
The continued enforcement of Title VII and the ADA is a priority of the Civil Rights Division. More information about Title VII, the ADA and other federal employment laws is available at www.justice.gov/crt. Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Florence Complaint Florence Consent DecreeJustice Department Requires Divestiture of Faiveley Transport’s U.S. Freight Car Brakes Business Before Wabtec AcquisitionRead the Press Release
Divestiture Will Preserve Competition for Railcar Freight Brake Systems and Components in the United States
The Department of Justice announced today that it will require Westinghouse Air Brake Technologies Corporation (Wabtec) to divest Faiveley Transport North America’s (Faiveley) entire U.S. freight car brakes business in order for Wabtec to proceed with its proposed approximately $1.8 billion acquisition of Faiveley Transport S.A. and Faiveley Transport North America.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns.
“The safe and efficient passage of goods throughout the United States freight rail network is crucial to the American economy and depends on sufficient competition for freight car brake systems and components,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “The acquisition as originally proposed would have eliminated Faiveley as one of only three major companies that supplies freight car brake components in the U.S. and eliminated Faiveley as a pipeline competitor in the development, manufacture and sale of freight car control valves – essentially freezing a century-old duopoly in that market.”
The proposed settlement includes a divestiture of Faiveley’s entire U.S. freight car brakes business which develops, manufactures and sells freight car brake systems and components including: air brake control valves, hand brakes, slack adjusters, truck-mounted brake assemblies, empty load devices and brake cylinders. The divestiture also includes Faiveley’s FTEN control valve, a freight car brake control valve under development that will be available for full commercialization after approval from the Association of American Railroads.
The department believes the proposed divestiture addresses the competitive concerns raised by this transaction as originally proposed. Under the terms of the proposed consent decree, Wabtec must divest Faiveley’s entire U.S. freight brakes business to a single independent buyer approved by the United States. Wabtec has proposed that the divestiture be sold to Amsted Rail Company Inc. (Amsted Rail). Amsted Rail is a unit of Amsted Industries, a privately held company, based in Chicago. It is a leader in manufacturing railroad freight car undercarriage components and end-of-car systems for the freight rail industry. Amsted Rail’s revenues in 2015 totaled approximately $2 billion.
Wabtec, based in Pennsylvania, is a global rail equipment supplier. Wabtec provides a wide range of equipment used on freight railcars, including components of freight car brake systems used in the U.S. freight rail network, and is a dominant supplier of complete freight brake systems in the United States. In 2015, Wabtec’s worldwide revenues were $3.3 billion, of which revenues from its freight business were approximately $2 billion.
Faiveley Transport North America, headquartered in Greenville, South Carolina, is a wholly-owned subsidiary of Faiveley Transport S.A., a French corporation. Faiveley Transport S.A. makes and sells rail equipment, including braking equipment, for a variety of train applications to customers in 24 countries, including the United States. During the fiscal year ending March 31, 2016, Faiveley had global sales of approximately €1.1 billion with approximately $174 million in revenue in the United States.As required by the Tunney Act, the proposed consent decree, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Wabtec-Faiveley CIS
Wabtec-Faiveley Complaint
Wabtec-Faiveley Hold Separate
Wabtec-Faiveley PFJ
Changes for INTERPOL Washington LeadershipRead the Press Release
Current Deputy Director Wayne H. Salzgaber will be acting director effective October 31, 2016.Geoffrey S. Shank, Director of the U.S. National Central Bureau of INTERPOL (INTERPOL Washington), will retire from federal government service effective October 31, 2016. Current Deputy Director Wayne H. Salzgaber will be acting director until further notice. The International Criminal Police Organization (INTERPOL), the largest international police organization in the world, comprises 190 member countries. INTERPOL Washington is a component of the U.S. Department of Justice, and is co-managed by the U.S. Department of Homeland Security.
Oregon Strip Club Operators Sentenced to Prison for Conspiring to Defraud the IRSRead the Press Release
Maintained Double Set of Books to Conceal $1.5 Million and Evade $650,000 in Taxes
Three family members who operated Portland, Oregon area strip clubs were sentenced to prison today for conspiring to defraud the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Billy J. Williams for the District of Oregon.
David Kiraz, 34, of Happy Valley, Oregon, was sentenced to serve 36 months in prison, George Kiraz, 56, of Portland, was sentenced to serve 36 months in prison and Daniel Kiraz, 32, of Portland, was sentenced to serve 12 months and one day in prison, for hiding $1.5 million in income from the IRS and evading more than $650,000 in income taxes.
“Skimming cash and keeping two sets of books cheats not only the United States, but also honest taxpayers that play by the rules and pay their fair share of taxes,” said Principal Deputy Assistant Attorney General Ciraolo. “The department and the IRS will continue to make the investigation and prosecution of tax evaders like David, George and Daniel Kiraz, a top priority.”
“These sentences are significant sanctions for serious crimes,” said U.S. Attorney Williams. “Business owners who deal extensively in cash have the same legal obligation to pay their fair share of taxes as does everyone else. The U.S. Attorney’s Office and IRS will continue to work together to identify and prosecute those who cheat the tax system.”
“Our nation’s tax system funds many government services to include our military, infrastructure and other vital services, so essentially, the Kiraz’s weren’t just cheating the IRS, they were cheating the men and women of our armed forces, anyone who drives our highways and those who rely on any number of social services for their well-being,” said Special Agent in Charge Darrell Waldon of IRS Criminal Investigation. “Moreover, besides depriving the U.S. Treasury, tax scoffs shift their tax burden to every taxpayer who pays an honest tax, essentially robbing each and every one of us.”
In May, David Kiraz, his father George D. Kiraz and David’s brother Daniel Kiraz were convicted of conspiracy to defraud the IRS and charges related to filing false tax returns. The Kirazes operated two strip clubs in the Portland area, Cabaret Lounge I and Cabaret Lounge II. From 2007 through 2010, the Kirazes’ strip clubs collected more than $1.5 million in cash door charges and dancer stage fees. The Kirazes maintained a double set of books, tracking these charges and fees in one set of books that was stored at David Kiraz’s residence, and omitting the receipts in a second set of books that the Kirazes provided to their return preparers, intentionally causing them to prepare and file false income tax returns for David Kiraz that failed to report between $330,000 and $460,000 in door and stage fees each year. The defendants evaded more than $650,000 in federal and state income taxes for tax years 2007 through 2010.
In addition to the prison terms imposed, George and David Kiraz were also ordered to serve three years of supervised release and to pay more than $650,000 in restitution to the IRS and the Oregon Department of Revenue. Daniel Kiraz was ordered to pay more than $125,000 in restitution.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Leslie A. Goemaat of the Justice Department’s Tax Division and Assistant U.S. Attorneys Seth D. Uram and Quinn P. Harrington, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nevada Business Owner and Bookkeeper Sentenced for Employment Tax CrimesRead the Press Release
An owner of several Reno, Nevada landscaping and rock hauling businesses was sentenced yesterday to 10 months in prison for failure to pay over employment taxes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Daniel G. Bogden of the District of Nevada. The bookkeeper for the business was sentenced to five years’ probation with three months home confinement for willful failure to file an employment tax return.
“The willful failure to comply with employment tax obligations is a crime – plain and simple,” said Principal Deputy Assistant Attorney General Ciraolo. “Stealing employee withholdings and failing to pay them over to the U.S. Treasury, gives dishonest employers an unfair advantage over their law-abiding competitors. The department will continue to work with the Internal Revenue Service (IRS) to prosecute these offenders and level the playing field.”
"Defendants’ illegal conduct injured not only the United States, but their former employees,” said U.S. Attorney Bogden. “While the United States of America will foot the bill for the employment and social security taxes that were withheld from the employees’ paychecks, the employees themselves will have any retirement diminished due to the non-reporting of cash wages.”
“Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS,” said Special Agent in Charge Tara Sullivan of IRS Criminal Investigation, Las Vegas Field Office. “When employers fail to do so, it affects revenue to the U.S. government, but more importantly, it affects their employees Medicare and social security benefits.”
According to documents filed with the court, Kyle Archie of Reno, was the part owner of Reno Rock Inc., GKPA Inc. and D Rockeries Inc. Kyle Archie admitted that he was responsible for the day-to-day operations of the businesses and that from 2003 through 2009; he had a legal duty to collect, truthfully account for, and pay over employment taxes to the IRS. He further admitted that although he collected these taxes from his employees’ wages and held them in trust, he failed to pay them over to the IRS for the third quarter of 2008.
Linda Archie of Reno, who is Kyle Archie’s mother, worked as the bookkeeper for Reno Rock Inc., GKPA Inc. and D. Rockeries Inc. and was responsible for maintaining the books and records of the companies and filing documents with various government agencies. She admitted that between 2003 and 2009, she failed to file employment tax returns on behalf of these businesses to account for the taxes that were withheld from the employees’ wages.
In addition to the prison term imposed, Kyle Archie was also ordered to serve ¬three years of supervised release, and both Kyle and Linda Archie were ordered to pay restitution to the IRS in the amount of $1,235,528.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Bogden commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Carla B. Higginbotham of the District of Nevada and Trial Attorney Kathleen M. Barry of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Justice Department Releases Information on Election Day Efforts to Protect the Right to Vote and Prosecute Ballot FraudRead the Press Release
In anticipation of the upcoming general elections, the Justice Department today provided information about its efforts, through the Civil Rights Division and Criminal Division, to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process.
Civil Rights Division:
The Civil Rights Division is responsible for ensuring compliance with the civil provisions of federal statutes that protect the right to vote and the criminal provisions of federal statutes that prohibit discriminatory interference with that right.
The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including: the Voting Rights Act, the National Voter Registration Act, the Uniformed and Overseas Citizens Absentee Voting Act, the Help America Vote Act and the Civil Rights Acts. Among other things, collectively, these laws:
- prohibit election practices that have either a discriminatory purpose, based on race or membership in a minority language group, or a discriminatory result, with members of racial or language minority groups having less opportunity than other citizens to participate in the political process;
- prohibit voter intimidation;
- provide that individuals who need assistance in voting because of disability or illiteracy can obtain assistance from a person of their choice;
- provide for accessible election machines for voters with disabilities;
- require provisional ballots for voters who assert they are eligible but whose names do not appear on poll books;
- provide for absentee ballots for service members, their family members and U.S. citizens living abroad;
- require states to ensure that citizens can register through drivers’ license offices, public assistance and disability services offices, other state agencies and through the mail; and
- include requirements regarding maintaining voter registration lists.
The Civil Rights Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.
On Election Day, Nov. 8, 2016, the Civil Rights Division will implement a comprehensive program to help protect the right to vote, including:
- The Civil Rights Division will conduct monitoring in the field at polling places around the country (locations for monitoring will be announced closer to Election Day).
- Civil Rights Division attorneys in both the Voting and Criminal Sections in Washington, D.C., will be ready to receive election-related complaints of potential violations relating to any of the statutes the Civil Rights Division enforces. Attorneys in the division will take appropriate action and will consult and coordinate with local U.S. Attorneys’ Offices and with other entities within the Justice Department concerning these complaints before, during and after Election Day.
- Civil Rights Division staff will be available by phone to receive complaints related to voting rights (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-305-0082). In addition, individuals may also report complaints, problems or concerns related to voting by fax 202-307-3961, by mail to [email protected] and by complaint forms that may be submitted through a link on the department’s website: https://www.justice.gov/crt/voting-section.
- Complaints related to violence, threats of violence or intimidation at a polling place should always be reported immediately to local authorities by calling 911. They should also be reported to the department after local authorities are contacted.
Criminal Division and the Department’s 94 U.S. Attorneys’ Offices:
The Department’s Criminal Division oversees the enforcement of federal laws that criminalize certain forms of election fraud and vindicate the integrity of the federal election process.
The Criminal Division’s Public Integrity Section and the department’s 94 U.S. Attorneys’ Offices are responsible for enforcing the federal criminal laws that prohibit various forms of election fraud, such as vote buying, multiple voting, submission of fraudulent ballots or registrations, alteration of votes and malfeasance by election officials. The Criminal Division is also responsible for enforcing federal criminal law prohibiting voter intimidation for reasons other than race, color, national origin or religion (as noted above, voter intimidation that has a basis in race, color, national origin or religion is addressed by the Civil Rights Division).
The U.S. Attorney’s Offices around the country designate Assistant U.S. Attorneys who serve as district election officers (DEOs) in the respective districts. DEOs are responsible for overseeing potential election-crime matters in their districts and coordinating with the department’s election-crime experts in Washington, D.C.
On Nov. 8, 2016, the U.S. Attorneys’ Offices will work with specially trained FBI personnel in each district to ensure that complaints from the public involving possible voter fraud are handled appropriately. Specifically:
- In consultation with federal prosecutors in the Public Integrity Section in Washington, D.C., the DEOs in U.S. Attorneys’ Offices, FBI officials at Headquarters in Washington, D.C., and FBI special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open to receive complaints from the public.
- Election-crime complaints should be directed to the local U.S. Attorney’s Offices or the local FBI office. A list of U.S. Attorneys’ Offices and their telephone numbers can be found at https://www.justice.gov/usao/find-your-united-states-attorney. A list of FBI offices and accompanying telephone numbers can be found at https://www.fbi.gov/contact-us.
- Public Integrity Section prosecutors are available to consult and coordinate with the U.S. Attorneys’ Offices and the FBI regarding the handling of election-crime allegations.
- Again, complaints related to violence, threats of violence or intimidation at a polling place should be reported first to local police authorities by calling 911.
Both protecting the right to vote and combating election fraud are essential to maintaining the confidence of all Americans in our democratic system of government. The department encourages anyone who has information suggesting voting discrimination or ballot fraud to contact the appropriate authorities.
German Shipping Corporations Convicted of Environmental CrimesRead the Press Release
Two German shipping companies that owned and operated the Motor Vessel (M/V) Nils B, pleaded guilty today to an environmental crime in federal court in San Diego before the Honorable Jan M. Adler, announced Assistant Attorney General John C. Cruden and United States Attorney Laura E. Duffy.
W. Bockstiegel Reederei GmbH & Co. KG (which operated the vessel) and W. Bockstiegel GmbH & Co. Reederei KG MS “NILS B” (which owned the vessel), pleaded guilty to one felony violation of the Act to Prevent Pollution from Ships for failing to accurately maintain an oil record book for the M/V Nils B. In doing so, the firms failed to disclose that oil contaminated water had been discharged into the ocean from the vessel without the use of pollution prevention equipment.
According to the plea agreement, on August 5, 2014, personnel from the United States Coast Guard boarded the vessel after its entry into the Port of San Diego, California. Once onboard, the Coast Guard discovered that the crew had failed to keep an oil record book for a significant period of time, modifications had been made to piping coming from the oil water separator and oil was discovered in discharge piping that should not have been present.
The defendants acknowledged that Coast Guard examiners took oil samples from the oil water separator’s overboard discharge valve and from the vessel’s sludge tank and the samples from the two locations matched. Under U.S. and international law, sludge is never to be discharged through an oil water separator. The Coast Guard also discovered a black hose near the oil water separator that contained oil slightly weathered light fuel oil mixed with lubricating oil. In the industry, such a hose is known as a “magic hose.” The defendants, in pleading guilty, admitted that the oil record book on board the vessel did not disclose any discharges of sludge between the time that the overboard discharge valve had been cleaned while the vessel was in dry dock in June of 2014 and its entry into the Port of San Diego in August.
Sentencing for this case has been set for Nov. 3. According to the plea documents, the company and the United States agree to recommend that the court impose a total criminal penalty of $750,000.00, of which $250,000.00 will be a community service payment for the benefit of the Tijuana River National Estuarine Research Reserve to further research related to the effects of pollution on the marine estuarine environment.
This case was investigated by U.S. Coast Guard Investigative Service and U.S. Environmental Protection Agency, Criminal Investigation Division personnel in San Diego, California. The case was prosecuted by Senior Trial Attorney Kenneth E. Nelson of the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice and Assistant U.S. Attorney Melanie Pierson of the U.S. Attorney's Office for the Southern District of California.
Former Fish and Wildlife Service Employee Pleads Guilty to Making False Statements in Disclosure FormsRead the Press Release
A former senior employee of the Interior Department’s Fish and Wildlife Service (FWS) pleaded guilty to making false statements in several disclosure forms to conceal approximately $300,000 of income that he received from an association that received grants and cooperative agreements from the FWS.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S Department of the Interior Deputy Inspector General Mary L. Kendall made the announcement.
Stephen M. Barton, 67, of Boise, Idaho, pleaded guilty yesterday before U.S. Magistrate Judge Ronald E. Bush of the District of Idaho. He is scheduled to be sentenced on Jan. 24, 2017.
According to his plea agreement, Barton worked as the chief of administration and information management for FWS beginning in 2007. Throughout his entire time at FWS, Barton also worked as treasurer for an association that received grants and cooperative agreements from FWS.
According to admissions made in connection with his plea agreement, Barton willfully and knowingly submitted false disclosure forms to FWS, including a request for ethics approval to engage in outside work or activity, a confidential financial disclosure report (OGE Form 450), and several confidential certificate of no new interests forms (OGE Form 450-A), in which he concealed approximately $300,000 of income that he received from the association between Jan. 1, 2010, and Dec. 31, 2014.
The Interior Department’s Office of Inspector General’s Eastern Division investigated the case. Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section is prosecuting the case.
Best Choice Home Health Care Agency Inc. and Its Owner Agree to Pay $1.8 Million to Resolve False Claims Act Allegations That They Paid Kickbacks for Home Health Services ReferralsRead the Press Release
Best Choice Home Health Care Agency Inc. (Best Choice) and its owner, Reginald King, have agreed to pay $1.8 million to resolve allegations that Best Choice and King violated the False Claims Act by paying kickbacks for the referral of Medicaid-covered patients for home and community-based healthcare services from Best Choice. Best Choice is a home healthcare services provider based in Kansas City, Kansas. King is the owner and operator of Best Choice.
“The department will continue to hold accountable entities and individuals that engage in illegal kickback schemes for the referral of patients,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “It is critically important that we protect the integrity of government health care programs by ensuring that services are provided based on clinical considerations rather than the financial interests of those who refer patients for care.”
This settlement resolves allegations that from July 1, 2010, through Dec. 31, 2014, Best Choice submitted claims for home and community-based healthcare services to Medicaid that resulted from a kickback arrangement between King, on behalf of Best Choice and Christopher Thomas, who transported patients from their homes to healthcare facilities in Kansas City. Specifically, under this alleged arrangement, King paid Thomas $58,000 in kickbacks for new patients referred to Best Choice based on a formula which accounted for each hour of service that Best Choice billed to Medicaid.
“Fraud and abuse in Medicaid add costs without adding any value,” said Acting U.S. Attorney Tom Beall for the District of Kansas. “We fight fraud to help make health care more available and more affordable.”
The Medicaid Program is a jointly-funded federal and state program. Of the $1.8 million that King and Best Choice will pay under the settlement, the United States will receive $1,011,780 and the state of Kansas will receive $788,220.
The settlement resolves allegations originally brought under the qui tam, or whistleblower, provisions of the False Claims Act by Thomas, the recipient of the alleged kickbacks. The act permits private parties to sue on behalf of the United States for false claims for government funds and to receive a share of any recovery. The whistleblower reward in this case will be $43,178 which represents 10 percent of the federal share of the settlement, minus the amount that the relator received in kickbacks during the duration of the scheme.
The settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Kansas, the Department of Health and Human Services Office of Inspector General and the Kansas Medicaid Fraud Control Unit.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The qui tam case is docketed as United States ex rel. Thomas v. Best Choice Home Health Care Agency, Inc., and Reginald King, No. 1:13-cv-2209 (D. Kan.).
Life Care Centers of America Inc. Agrees to Pay $145 Million to Resolve False Claims Act Allegations Relating to the Provision of Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
Life Care Centers of America Inc. (Life Care) and its owner, Forrest L. Preston, have agreed to pay $145 million to resolve a government lawsuit alleging that Life Care violated the False Claims Act by knowingly causing skilled nursing facilities (SNFs) to submit false claims to Medicare and TRICARE for rehabilitation therapy services that were not reasonable, necessary or skilled, the Department of Justice announced today. Life Care, based in Cleveland, Tennessee, owns and operates more than 220 skilled nursing facilities across the country.
“This resolution is the largest settlement with a skilled nursing facility chain in the department’s history,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “It is critically important that we protect the integrity of government health care programs by ensuring that services are provided based on clinical rather than financial considerations.”
This settlement resolves allegations that between Jan. 1, 2006 and Feb. 28, 2013, Life Care submitted false claims for rehabilitation therapy by engaging in a systematic effort to increase its Medicare and TRICARE billings. Medicare reimburses skilled nursing facilities at a daily rate that reflects the skilled therapy and nursing needs of their qualifying patients. The greater the skilled therapy and nursing needs of the patient, the higher the level of Medicare reimbursement. The highest level of Medicare reimbursement for skilled nursing facilities is for “Ultra High” patients who require a minimum of 720 minutes of skilled therapy from two therapy disciplines (e.g., physical, occupational, speech), one of which has to be provided five days a week.
The United States alleged in its complaint that Life Care instituted corporate-wide policies and practices designed to place as many beneficiaries in the Ultra High reimbursement level irrespective of the clinical needs of the patients, resulting in the provision of unreasonable and unnecessary therapy to many beneficiaries. Life Care also sought to keep patients longer than was necessary in order to continue billing for rehabilitation therapy, even after the treating therapists felt that therapy should be discontinued. Life Care carefully tracked the minutes of therapy provided to each patient and number of days in therapy to ensure that as many patients as possible were at the highest level of reimbursement for the longest possible period. The settlement also resolves allegations brought in a separate lawsuit by the United States that Forrest L. Preston, as the sole shareholder of Life Care, was unjustly enriched by Life Care’s fraudulent scheme.
“Billing federal healthcare programs for medically unnecessary rehabilitation services not only undermines the viability of those programs, it exploits our most vulnerable citizens,” said U.S. Attorney Nancy Stallard Harr for the Eastern District of Tennessee. “We are committed to working with our federal partners to protect both.”
“The resolution announced today demonstrates the commitment of the U.S. Attorney’s Office to aggressively pursue providers who utilize fraudulent practices to knowingly put their own financial self-interest over a duty to patients,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “It is imperative that providers make healthcare decisions based upon a patient’s need for services rather than a self-serving desire to maximize financial profit. Our office will continue to investigate fraud allegations, in order to ensure that providers do not compromise the integrity of our public health care programs.”
As part of this settlement, Life Care has also entered into a five-year chain-wide Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent review organization to annually assess the medical necessity and appropriateness of therapy services billed to Medicare.
“Therapy provided in skilled nursing facilities must be medically reasonable and necessary, and we will continue to vigorously investigate companies that subject their residents to needless and unreasonable therapy,” said HHS Inspector General Daniel R. Levinson. “The corporate integrity agreement with Life Care is designed to ensure that it only provides therapy based on the individual needs of each resident.”
The settlement, which was based on the company’s ability to pay, resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Tammie Taylor and Glenda Martin, former Life Care employees. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The government may intervene and file its own complaint in such a lawsuit, as it has done in this case. The whistleblower reward in this case will be $29 million.
The settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Eastern District of Tennessee and the Southern District of Florida, and the HHS-OIG, with assistance from the U.S. Attorneys’ Offices for the District of Colorado, the Middle District of Florida, the Northern District of Georgia, the District of Massachusetts and the District of South Carolina and NCI/AdvanceMed, a Medicare Zone Program Integrity Contractor.
The two qui tam cases are docketed as United States ex rel. Taylor v. Life Care Centers of America, Inc., No. 1:12-cv-64 (E.D. Tenn) and United States ex rel. Martin v. Life Care Centers of America, Inc., No. 1:08-cv-251 (E.D. Tenn). The case against Forrest L. Preston is captioned United States v. Preston, No. 1:16-cv-113 (E.D. Tenn). The claims resolved by the settlement are allegations only; there has been no determination of liability.
Embraer Agrees to Pay More than $107 Million to Resolve Foreign Corrupt Practices Act ChargesRead the Press Release
Parallel Resolutions with the Securities and Exchange Commission and Brazilian Authorities Equaling $97 Million in Disgorgement Also Announced Today
Brazilian aircraft manufacturer Embraer S.A. (Embraer) entered into a resolution to resolve criminal charges and agreed to pay a penalty of more than $107 million in connection with schemes involving the bribery of government officials in the Dominican Republic, Saudi Arabia and Mozambique, and to pay millions more in falsely recorded payments in India via a sham agency agreement.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Assistant Special Agent in Charge William J. Maddalena of the FBI’s Miami Field Office made the announcement.
“Embraer paid millions of dollars in bribes to win government aircraft contracts in three different continents,” said Assistant Attorney General Caldwell. “But this prosecution shows that the Criminal Division will hold accountable those who treat corruption as a mere cost of doing business. Between U.S., Brazilian and Saudi authorities, bribe payers and bribe takers alike have been brought to justice for their wrongdoing.”
“Embraer tried to bribe their way into several profitable aircraft contracts around the world,” said Assistant Special Agent in Charge Maddalena. “Instead of reaping a nice profit, their criminal conduct earned the Brazilian aircraft manufacturer a substantial penalty that more than wiped out their gains from these contracts. Crime does not pay!”
According to the company’s admissions, Embraer executives and employees paid bribes to government officials and falsified books and records in connection with aircraft sales to foreign governments and state-owned entities in multiple countries. In 2008, Embraer paid $3.52 million to an influential government official in the Dominican Republic via a false agency agreement to secure a contract to sell the Dominican Air Force eight military aircraft for approximately $92 million. In 2010, Embraer paid $1.65 million to an official at a Saudi Arabian state-owned and -controlled company via a false agency agreement to secure that instrumentality’s agreement to purchase three aircraft from Embraer for approximately $93 million. In 2008, Embraer paid $800,000 via a false agency agreement with an intermediary designated by a high-level official at Mozambique’s state-owned commercial airline, Linhas Aéreas de Moçambique S.A. (LAM), to secure LAM’s agreement to purchase two aircraft from Embraer for approximately $65 million. In 2009, Embraer paid an agent $5.76 million pursuant to a false agency agreement with a shell company in connection with a contract it secured to sell the Indian Air Force three aircraft for approximately $208 million.
In total, Embraer earned profits of nearly $84 million on the foregoing aircraft sales.
Embraer entered into a three-year deferred prosecution agreement (DPA) to resolve the case. As part of the DPA, Embraer admitted to its involvement in a conspiracy to violate the FCPA’s anti-bribery and books and records provisions and to its willful failure to implement an adequate system of internal accounting controls. Embraer agreed to pay a criminal penalty of $107,285,090; continue to cooperate with the department’s investigation; enhance its compliance program; implement a more adequate system of internal accounting controls; and retain an independent corporate compliance monitor for a term of three years.
The Criminal Division’s Fraud Section reached this resolution based on a number of factors, including the fact that Embraer did not voluntarily disclose the FCPA violations, but did cooperate with the department’s investigation after the Securities and Exchange Commission (SEC) served it with a subpoena. After Embraer began cooperating, it did so fully and disclosed all relevant, non-privileged facts known to it, including about individuals involved in the misconduct. Embraer did not, however, engage in full remediation. It disciplined a number of company employees and executives engaged in the misconduct, but did not discipline a senior executive who was aware of bribery discussions in emails in 2004 and had oversight responsibility for the employees engaged in those discussions. As a result, the criminal penalty in this case is 20 percent below the bottom of the applicable range under the U.S. Sentencing Guidelines, a discount that reflects Embraer’s full cooperation but incomplete remediation.
In related matters, Embraer reached settlements with both the SEC and Brazilian authorities. Embraer reached a settlement with the SEC, under which it agreed to pay $83.8 million in disgorgement and $14.4 million in prejudgment interest. The SEC has agreed to credit the disgorgement that Embraer pays to Brazilian authorities. Embraer also reached a settlement with Brazilian authorities under which it agreed to pay $20 million in disgorgement. With the cooperation of U.S. authorities, Brazilian authorities have charged 11 individuals for their alleged involvement in Embraer’s misconduct in the Dominican Republic. Saudi Arabian authorities have charged two individuals for their alleged involvement in Embraer’s misconduct in Saudi Arabia.
The FBI’s Miami Field Office investigated the case. Senior Trial Attorney Jason Linder and Trial Attorney John-Alex Romano of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section appreciates the cooperation and assistance provided by the SEC in this matter. Authorities in Brazil, the Dominican Republic and South Africa also provided assistance and cooperation. The Criminal Division’s Office of International Affairs also provided assistance during the investigation.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Department of Justice Announces Expansion of Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
Department of Justice Tribal Access Program Will Continue to Improve the Exchange of Critical Data
The Department of Justice is expanding the Tribal Access Program (TAP) for National Crime Information which provides federally-recognized tribes access to national crime information databases for both civil and criminal purposes. Tribes interested in participating in TAP must submit a letter or resolution from the tribe’s governing body by Dec. 2. TAP allows tribes to more effectively serve and protect their communities by ensuring the exchange of critical data.
In the fall of 2015, the Department of Justice selected tribes to participate in the initial User Feedback Phase of TAP. This partnership focused on testing the department’s technology solution and training support; it also enabled tribes to identify and share best practices regarding the use of national crime information databases to strengthen public safety.
During 2016, participating tribes received a kiosk workstation that provided access to national systems as well as training to support whole-of-government needs. User Feedback Phase tribes have elected to implement TAP in a variety of criminal and civil agencies. Those tribal criminal agencies included law enforcement agencies, prosecutors, criminal courts, jails and probation departments. The tribal civil agencies and programs that were eligible to use TAP included agencies whose staff and volunteers have contact with or control over Indian children; public housing agencies; child support enforcement agencies; head start programs; civil agencies that investigate allegations of abuse, neglect and exploitation of children; civil courts that issue orders of protection, restraining orders, or other keep away orders; and sex offender registration programs.
“Sharing crime information helps police solve crimes and fosters better cooperation between tribal, federal, state and local law enforcement,” said Director Tracy Toulou for the department’s Office of Tribal Justice. “This expansion is another step forward in the Justice Department’s ongoing efforts to strengthen the ability of tribal institutions to keep communities safe. For example, tribal court orders of protection entered into this system will be accessible to law enforcement nationwide and help safeguard victims of domestic violence.”
“TAP showcases how a blend of Indian Country policy experts, technology specialists, and law enforcement experts working in partnership with native communities can have a direct and positive impact on the daily lives of people in Indian Country,” said Deputy Assistant Attorney General and Chief Information Officer Joseph Klimavicz for the department’s Justice Management Division. “It is my hope that the development of a comprehensive solution to the issue of tribes’ long-standing inability to access national crime information databases breaks an impasse that was putting communities at risk.”
The department’s Office of Community Oriented Policing Services (COPS) and the
Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART) are each providing $1 million in funding for the expansion, which will be used for approximately 10 kiosks.
“Access to data is an integral part of building trust between tribal law enforcement agencies, the federal government, and tribal communities,” said Director Ronald Davis of the COPS Office. “The COPS Office is proud to continue its support of the Tribal Access Program, which provides public safety agencies serving tribal populations the access to critical information databases that can help keep their communities safe.”
“The SMART Office is proud to contribute a million dollars to this effort, for the second straight year,” said Director Luis C. deBaca for the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking. “Access to federal justice information systems is critical to public safety in tribal communities, as they work to combat sexual violence and build registration and notification programs.”
TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act (SORNA); have orders of protection enforced off-reservation; protect children; keep firearms away from persons who are disqualified from receiving them; improve the safety of public housing, and allow tribes to enter their arrests and convictions into national databases.
TAP supports tribes in analyzing their needs for national crime information and includes appropriate solutions, including a-state-of-the-art biometric/biographic kiosk workstation with capabilities to process finger and palm prints, take mugshots and submit records to national databases, as well as the ability to access Criminal Justice Information Services (CJIS) systems for criminal and civil purposes through the Department of Justice’s Criminal Justice Information Network. TAP, which is managed by the department’s Chief Information Officer, provides specialized training and assistance for participating tribes, including computer-based training and on-site instruction, as well as a 24/7 Help Desk.
Eligibility Criteria For Interested Tribes
Because of the success of the User Feedback Phase, the department is expanding TAP. Tribes who have either an Adam Walsh Act Sex Offender Registry, or a tribal law enforcement agency which is not a federal Bureau of Indian Affairs police department, are eligible to participate in TAP. The pertinent dates for the next phase of TAP:
- Expression of Interest Submission: Oct. 24 - Dec. 2
- Notification of Selection: Dec. 16
- Onboarding and Vetting: Jan. 9, 2017 - May 31, 2017
- Deployment: May 9 - Sept. 29, 2017
Federally recognized tribes interested in participating in TAP must submit a letter or resolution from the tribe’s governing body. That document should include:
- Name and contact information of a senior tribal executive who will act as the primary TAP point of contact. This individual must have authority to ensure coordination of TAP across various tribal agencies, departments and offices. An alternate point of contact must also be named.
- A statement acknowledging that misuse or non-use may result in TAP access being discontinued.
- Language affirming the tribe’s agreement to:
- Make whole-of-government legislative and policy determinations which provide guidance to tribal agencies about how national crime information databases are used, including what tribal data is entered into those systems.
- Use TAP to close gaps related to access to national crime information databases if that was an impediment to the implementation of SORNA. This must be accomplished within one year of deployment.
- Execute a Memorandum of Agreement with FBI CJIS and pay the standard national user fees associated with fingerprint-based for noncriminal justice (civil) purposes.
- Provide necessary documentation and establish appropriate policies during the onboarding and vetting time period.
- Ensure users of TAP establish appropriate accounts, take required training, background checks, and obtain necessary certification during the onboarding and vetting time period.
- Ensure users of TAP participate in deployment day training during the deployment time period.
- Comply with and adhere to auditing and policy requirements as well as all personnel, physical, and technical security requirements.
- Provide high-speed Internet access to the kiosk.
The letter or resolution from the tribe’s governing body must be sent to [email protected] no later than midnight eastern time, Dec. 2.
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal.
For specific information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.
Justice Department and Federal Trade Commission Release Guidance for Human Resource Professionals on How Antitrust Law Applies to Employee Hiring and CompensationRead the Press Release
Guidance Helps Protect Workers Against Anticompetitive Conduct and Puts Firms on Notice that DOJ Will Proceed Criminally Against Naked Wage Fixing and No-Poaching Agreements
Today, the Justice Department’s Antitrust Division and the Federal Trade Commission issued guidance for human resource (HR) professionals and others who are involved in hiring and compensation decisions. HR professionals are often in the best position to ensure their companies’ hiring practices comply with the law and this guidance will help educate and inform them about how the antitrust laws apply to the employment arena.
Workers are entitled to the benefits of a competitive market for their services. They are harmed if companies that would ordinarily compete against each other to recruit and retain employees agree to fix wages or other terms of employment or enter into so-called "no-poaching" agreements by agreeing not to recruit each other’s employees.
Going forward, the Justice Department intends to criminally investigate naked no-poaching or wage-fixing agreements that are unrelated or unnecessary to a larger legitimate collaboration between the employers. These types of agreements eliminate competition in the same irredeemable way as agreements to fix the prices of goods or allocate customers, which have traditionally been criminally investigated and prosecuted as hardcore cartel conduct. Agreements that do not constitute criminal violations may still lead to civil liability under statutes enforced by both agencies.
"Antitrust violations in the employment arena can greatly harm employees and impact earnings over the course of their entire careers," said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. "HR professionals need to understand that these violations can lead to severe consequences, including criminal prosecution. The newly released joint guidance provides HR professionals with information to prevent violations and report potentially unlawful activity, furthering the Justice Department’s commitment to protect workers from harmful conduct that stifles competition."
"Competition is essential to well-functioning markets, and job markets are no exception," said Chairwoman Edith Ramirez of the Federal Trade Commission. "These guidelines will help ensure that employers understand how to comply with the antitrust laws and will help employees reap the benefits of a competitive market for their services."
The guidance also discusses how the antitrust laws apply to firms’ decisions to share sensitive information, such as compensation information, with competing employers, either directly or through third party entities. Information sharing may violate antitrust law unless the information exchange is carefully designed to prevent harm to competition.
The agencies’ joint guidance includes a Q&A section that explains how antitrust law applies to various scenarios that HR professionals might encounter in their daily work lives. The agencies also urge HR professionals and others who have information about possible antitrust violations to contact the Justice Department Antitrust Division’s Citizen Complaint Center or the Federal Trade Commission’s Bureau of Competition.
The agencies have also issued a quick reference card that encapsulates some of this information in a convenient, index-card-sized format. The card provides a list of antitrust red flags that HR professionals should look out for during their day-to-day work. The listed situations are not exhaustive, and the existence of a red flag does not necessarily imply an antitrust violation. Still, HR professionals should proceed with particular caution if they are confronted with any of the scenarios listed on the card. By doing so, HR professionals can play an important role in protecting employees and consumers and ensuring the competitiveness of the employment marketplace.
Justice Department Sues to Stop Oregon Woman from Promoting Religious Non-Profit Corporation SchemeRead the Press Release
The United States has sued an Oregon City, Oregon woman to bar her from promoting an alleged tax fraud scheme, the Justice Department announced today. The government’s complaint alleges that Priscilla E. Schrock promotes the formation and use of “Religious Non-Profit Corporations” (RNPCs), which Schrock falsely informs her customers are exempt from tax laws. According to the complaint, Schrock claims that by assigning income to the RNPC, the customer can avoid paying federal income tax on their income. Schrock also tells her customers that transferring assets to an RNPC protects the assets from the Internal Revenue Service (IRS) collection action, the complaint alleges. The suit asks the court to bar Schrock from promoting and selling the scheme and to order her to provide a list of her customers’ names, addresses, telephone numbers and email addresses to the Justice Department.
According to the complaint, Schrock promotes the scheme through an Oregon City based entity called South Beach Missions. The complaint also alleges that the U.S. District Court for the District of Oregon previously enjoined a similar scheme that John D. Fitzgerald promoted. According to the complaint, Fitzgerald and Schrock are friends and some of Fitzgerald’s former customers are now Schrock’s customers.
According to the complaint, Schrock and South Beach Missions know or have reason to know the statements they make about RNPCs, aka corporations sole, are false sham non-profit corporations. The IRS has issued guidance regarding sham non-profits and advised the public to be aware of tax evasion schemes that misuse corporation sole laws. The IRS has specifically advised that “[a] taxpayer cannot use a corporation sole created to avoid or evade income taxes as a means to exclude the taxpayer’s personal income from tax.”
Abusive tax schemes and return preparer fraud are on the IRS’s Dirty Dozen Tax Scams for 2016. 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.
Former IRS Special Agent Charged with Filing False Tax Returns, Theft of Government Money and Obstructing a Federal InvestigationRead the Press Release
A federal grand jury in Sacramento, California returned an indictment today charging a former Internal Revenue Service–Criminal Investigation (IRS-CI) special agent with six counts of filing false income tax returns, one count of corruptly endeavoring to obstruct the internal revenue laws, one count of theft of government money and one count of destroying records during a federal investigation, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, U.S. Attorney Brian J. Stretch of the Northern District of California, Special Agent in Charge Rod Ammari of the Treasury Inspector General for Tax Administration (TIGTA) and Acting Special Agent in Charge Darrell Waldon of IRS-CI.
According to the allegations in the indictment, Alena Aleykina, of Sacramento, a certified public accountant and former IRS-CI special agent, filed false individual income tax returns for the years 2009, 2010 and 2011, on which she claimed false filing statutes, dependents, deductions and losses and tax returns on behalf of two trusts. The indictment further alleges that, between 2008 and 2013, Aleykina attempted to obstruct the IRS by preparing false tax returns for herself, family members, trusts and partnerships and by making false statements to representatives of the Department of the Treasury and attempted to obstruct a federal investigation by destroying evidence on a government computer. Aleykina is also charged with fraudulently causing the IRS to issue IRS Tuition Assistance Reimbursement payments to her.
If convicted, Aleykina faces a statutory maximum sentence of three years in prison on each count of filing a false tax return and corruptly endeavoring to obstruct the internal revenue laws, 10 years in prison for the charge of theft of government money and 20 years in prison for the destruction of evidence charge, as well as a period of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo, U.S. Attorney Stretch, Special Agent in Charge Ammari and Acting Special Agent in Charge Waldon thanked agents of TIGTA and IRS-CI, who conducted the investigation, and Assistant U.S. Attorney Thomas Newman of the Northern District of California and Trial Attorneys Gregory Bernstein and Charles O’Reilly of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former California-Based Global Vice President of International Technology Company and Two Others Indicted in Scheme to Commit Insider Trading and Money LaunderingRead the Press Release
A former Palo Alto, California, based global vice president of SAP SE and two other individuals were charged in a federal indictment for their roles in a scheme to commit insider trading and money laundering that allegedly resulted in hundreds of thousands of dollars in profits.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Inspector in Charge Regina L. Faulkerson of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.
Christopher G. Salis, 39, of San Mateo, California, a former SAP global vice president; Douglas M. Miller, 40, of Dyer, Indiana; and Edward M. Miller, 43, of Munster, Indiana, were charged in a 17-count indictment returned yesterday by a federal grand jury in the Northern District of Indiana.
The indictment charges all defendants with one count of conspiracy to commit wire fraud and securities fraud, one count of conspiracy to commit money laundering and one count of conspiracy to structure currency transactions involving a financial institution for the purpose of evading the reporting requirements. In addition, Salis is charged with four counts of wire fraud and five counts of securities fraud; Douglas Miller is charged with six counts of wire fraud, five counts of securities fraud and one count of making false statements; and Edward Miller is charged with one count of wire fraud, one count of securities fraud, one count of witness harassment and one count of obstruction of justice.
According to allegations in the indictment, while Salis was employed as a SAP global vice president, he obtained material, non-public information about SAP’s acquisition of Concur, which he disclosed to Douglas Miller in violation of a duty of confidentiality. Douglas Miller, Edward Miller and others then allegedly purchased securities in Concur based on this information for the purposes of profiting from these transactions and returning a portion of the profits to Salis. Following the acquisition, the indictment alleges that Douglas Miller and Edward Miller sold the securities and Douglas Miller made approximately $119,000 and Edward Miller made approximately $149,000. Other traders who allegedly used the information profited a total of approximately $237,000. In order to conceal the nature of the proceeds, the Millers allegedly used cash, money orders and checks to transfer some of their trading profits to Salis. In total, Salis allegedly received nearly $90,000 from his co-conspirators.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
USPIS investigated the case. Trial Attorneys L. Rush Atkinson, Jennifer G. Ballantyne and Gary A. Winters of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission has provided substantial assistance in this matter.
Utah Chiropractor Indicted for Tax EvasionRead the Press Release
Submitted Checks Drawn on Closed Accounts to IRS
A Salt Lake City, Utah grand jury returned an indictment today charging a chiropractor and health care products business owner with one count of attempting to evade the payment of his federal income taxes for the years 2005, 2006, 2007 and 2010, and one count of corruptly endeavoring to impair and impede the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to the allegations in the indictment, in March 2012, Louis Hansen, presented a check to the Internal Revenue Service (IRS) in the amount of $342,699.41 that was drawn on a closed bank account in an attempt to pay taxes, penalties and interest that he owed for tax years 2005, 2006, 2007 and 2010. He also caused a copy of this check to be mailed to an IRS revenue officer, as well as a signed certified letter claiming that he had submitted the check to discharge his debt. The indictment further alleges that in June 2012, Hansen presented four additional checks to the IRS drawn on a different closed bank account in an attempt to have funds credited to his IRS tax account. Each check was in the amount of $425,000. According to the indictment, at the time these four checks were presented to the IRS, Hansen owed more than $240,000 in taxes for the years 2005, 2006, 2007, 2010 and 2011.
If convicted, Hansen faces a statutory maximum sentence of five years in prison on the tax evasion charge and a statutory maximum sentence of three years in prison on the charge of endeavoring to impede the internal revenue laws, as well as a period of supervised release and monetary penalties.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Huber thanked agents of IRS–Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Kevin L. Sundwall and Assistant Chief Andrew Kameros of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
U.S. Supreme Court Justice Breyer Addresses Latin American Judges at Justice Department’s Judicial Studies InstituteRead the Press Release
Today, U.S. Supreme Court Justice Stephen Breyer addressed 32 judges from Colombia, the Dominican Republic, El Salvador, Mexico, Panama and Peru as part of a Department of Justice training program at the Judicial Studies Institute (JSI) in San Juan, Puerto Rico, for the judiciaries of the Western Hemisphere.
Justice Breyer stressed the importance of their contribution to rule of law in the hemisphere and lauded them for their role in the transformation of Latin American justice. Justice Breyer also met separately with a special delegation from Mexico that included a Supreme Court Justice, with whom he discussed their country’s ongoing justice reform.
Through Spanish instruction, practical exercises and opportunities to observe courtroom proceedings, judges who participated in the JSI program learned about evidentiary guidelines, the role of judges and courtroom management in an accusatorial justice system. This capacity building is critical to the region as judges’ roles are drastically different from those in an inquisitorial system, where judges decide cases based on paper files behind closed doors. In an accusatorial system, judges are responsible for writing opinions, weighing evidence and guaranteeing the rights of both the victims and the accused, all in an open courtroom setting.
With the support of U.S. Supreme Court Justice Sonia Sotomayor, and in partnership with the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs, the Justice Department’s Office of Prosecutorial Development Assistance and Training (OPDAT) launched JSI in 2012 as a response to the wave of justice sector reforms in Latin America that saw many countries transition to an accusatorial system. Since that time, OPDAT, with its partners at the University of Puerto Rico and Inter-American University law schools, has hosted over 500 Latin American judges.
Please visit https://www.supremecourt.gov/ for more information about the U.S. Supreme Court and https://www.justice.gov/criminal-opdat for more information about OPDAT’s capacity-building efforts around the world.
Massachusetts Man Sentenced to Prison for Filing a False Tax ReturnRead the Press Release
A resident of West Bridgewater, Massachusetts was sentenced to 10 months in prison today for filing a false individual income tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to documents filed with the court, Keith Eaton failed to file federal individual income tax returns with the Internal Revenue Service (IRS) for 1998 through 2003. In or about May 2004, the IRS assessed Eaton more than $280,000 in taxes, interest and penalties for the years 1998 through 2001.
From November 2004 to April 2008, Eaton was employed at a heating and air conditioning company in Brockton, Massachusetts. Each year, the company provided Eaton with Forms 1099 reflecting his compensation. Despite receiving these Forms 1099 reporting significant compensation, Eaton willfully failed to file timely individual income tax returns with the IRS for the years 2004 through 2008. In November and December 2009, Eaton filed individual income tax returns for the years 2000 through 2008 on which he falsely reported receiving no income.
In or about November 2008, Eaton began operating Eaton Mechanical LLC, a heating and air conditioning business. In an attempt to thwart the IRS’ efforts to collect his back taxes, Eaton caused checks from the business bank account to be made payable to himself and then cashed the checks. Eaton used the cash to pay his personal expenses, including his mortgage. Finally, despite having sufficient income from the operation of his business to require him to file income tax returns, Eaton failed to file individual income tax returns for the years 2009 through 2012.
In addition to the prison term imposed, Eaton was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $399,132 for his 1998 through 2012 unpaid tax liabilities.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation and the FBI’s Boston Field Division, who conducted the investigation, and Trial Attorneys Brittney Campbell and Kenneth Vert 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.
Kansas Aesthetics Business Owner Sentenced to Prison for Tax EvasionRead the Press Release
A Leawood, Kansas business owner was sentenced yesterday to 51 months in prison after being convicted of tax evasion following a five-week jury trial in April announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and Acting U.S. Attorney Thomas Beall of the District of Kansas.
According to the evidence at trial, Kathleen M. Stegman, 58, owned and operated Midwest Medical Aesthetics (Midwest). During the years 2006 through 2010, Stegman concealed cash receipts, diverted hundreds of thousands of dollars from Midwest for her personal use, created and used an entity to falsify business expenses and hide Midwest customer checks and falsely claimed as business expenses a mortgage payment on an investment property, the cost of an invisible dog fence, residential gas and electricity bills, Mercedes Benz lease payments and an investment in a deck coating product. The government also presented evidence that Stegman used the money she diverted from Midwest to fund a lavish lifestyle, including the purchase of condominiums in Las Vegas, over $300,000 in gold coins, a 54-foot yacht and real estate in North Carolina.
The evidence presented also established that Stegman caused an employee to destroy business records during a civil tax audit, provided the Internal Revenue Service (IRS) with false and altered documents and attempted to tamper with a witness’s statement to criminal investigators.
In addition to the prison term, U.S. District Judge Julie Robinson ordered Stegman to pay restitution to the IRS in the amount of $68,733 as a condition of supervised release and a fine in the amount of $100,000.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorneys Ryan R. Raybould and John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Jabari B. Wamble of the District of Kansas, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Seeks to Intervene in Lawsuit Alleging Race Discrimination and Retaliation by Pocomoke City, Maryland, the Worcester County Sheriff and the State of MarylandRead the Press Release
The Justice Department announced today that it has moved to intervene in Savage et al. v. Pocomoke City et al., a private lawsuit alleging race discrimination and retaliation under Title VII of the Civil Rights Act of 1964 by Pocomoke City, Maryland, the Worcester County Sheriff and the state of Maryland. Title VII is a federal statute that prohibits employment discrimination on the basis of the basis of sex, race, color, national origin and religion.
The United States’ complaint in intervention alleges that the Worcester County Sheriff and the state of Maryland subjected former Pocomoke City Police Officer Franklin Savage to a racially-hostile work environment while he was assigned to a joint task force operated by the sheriff’s office. Specifically, Officer Savage was repeatedly subjected to racial epithets as well as other racially-charged acts of harassment, humiliation and intimidation by his co-workers and supervisors. Officer Savage’s complaints about racial harassment allegedly resulted in a series of retaliatory actions against him by the Worcester County Sheriff’s Office and Pocomoke City, concluding with the termination of his employment. The complaint further alleges that Pocomoke City similarly retaliated against two other officers – former Pocomoke City Police Chief Kelvin Sewell and former Pocomoke City Police Lieutenant Lynell Green – for supporting Officer Savage in the course of his complaints. Chief Sewell was eventually terminated as well.
The complaint seeks a court order that requires the defendants to implement policies and procedures that will ensure a workplace environment free of discrimination and retaliatory conduct. The United States also seeks relief, including monetary relief for the three charging parties as compensation for damages caused by the alleged discrimination.
“Federal law protects against discrimination and retaliation in the workplace,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “In police departments, that protection is vital not only for individual officials, but also for the communities they serve. The Justice Department is firmly committed to ensuring that our nation’s state and local law enforcement agencies comply with Title VII’s promise of a workplace free from racial discrimination and retaliation.”
Officer Savage, Chief Sewell and Lieutenant Green each filed charges of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Baltimore Office investigated the charges and made reasonable cause findings. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.
“No one should have to face harassment and retaliation while at work,” said EEOC Chair Jenny R. Yang. “When public employees face discrimination, it undermines the trust and credibility in our public institutions. This case represents the latest partnership between EEOC and the Department of Justice to advance our shared Title VII enforcement responsibilities.”
This lawsuit was brought as a result of a joint collaborative effort by the EEOC and the Civil Rights Division to vigorously enforce Title VII.
“EEOC is committed to ensuring the employees who serve the public in critical law enforcement positions are protected by the laws forbidding unlawful harassment and retaliation in the workplace,” said Director Spencer H. Lewis Jr. of EEOC’s Philadelphia District Office, which includes the Baltimore Field Office. “I am pleased that EEOC and the Department of Justice have established a collaborative relationship that will impact public employers and work together to redress violations of the law when they occur.”
Enforcement of federal employment discrimination laws remains a top priority of the Justice Department. More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt. The EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on its website at www.eeoc.gov.
Pocomoke City Motion to InterveneIntern Experiences Police Ride AlongRead the Press Release
Interns for INTERPOL Washington get to make valuable connections with law enforcement during their participation in the six-month program. As an INTERPOL Washington intern, Rachelle Tugade had the opportunity to experience a Police Ride Along with a Prince George’s County Police Officer. This allowed her to accompany the officer during their tour of duty in a police vehicle and act as an observer for the day. The evening started out quietly enough. The officer told her of his previous experiences as a police officer and what it’s like to work in the area. He took her on a detour of the neighborhood and explained the different criminal scenarios that have happened in those areas, which included stabbings, drug overdoses, and assaults. As the police officer put it, “The neighborhood looks normal on the outside, but it’s what’s behind closed doors that matters.”
As the hours passed, things started to liven up a bit as they went to a variety of scenes and served as backup for other officers. Rachelle witnessed a hit-and-run car crash in a residential area, was present at a scene of a robbery at a local store, and went inside different apartment complexes to respond to residents’ emergency phone calls. The officer also introduced her to his colleagues, who told her stories of crazy scenarios they have had to deal with in the past. Overall, Rachelle’s ride along experience was great! She didn’t quite know what to expect, but she’s very glad her internship gave her this opportunity. It definitely broadened her respect for law enforcement and she would recommend anyone interested in law enforcement to contact a local police department and experience a police ride along. For more information on INTERPOL Washington’s internships, please see https://www.justice.gov/interpol-washington/internships.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
El Departamento De Justicia Y El Departamento De Salud Y Servicios Humanos Emiten Una Guía Conjunta Para Los Sistemas De Bienestar De MenoresRead the Press Release
El Departamento de Justicia y el Departamento de Salud y Servicios Humanos [Department of Health and Human Services (HHS)] emitieron una carta orientativa conjunta hoy a los sistemas de bienestar de menores estatales y locales sobre las exigencias del Título VI de la Ley de Derechos Civiles de 1964 y sus normas de implementación. El Título VI prohíbe la discriminación basada en la raza, el color y el origen nacional en programas y actividades que reciban asistencia financiera federal.
La guía busca asegurarse de que los sistemas de bienestar de menores conozcan sus responsabilidades de proteger los derechos civiles de niños y familias. La guía forma parte de una asociación en curso entre los departamentos para ayudar a las agencias de bienestar de menores a proteger el bienestar de los niños y asegurar el cumplimiento de las leyes federales contra la discriminación. El año pasado, los departamentos emitieron una guía sobre la intersección de los requisitos de bienestar de menores y el Título II de la Ley para Personas con Discapacidades, así como también la Sección 504 de la Ley de Rehabilitación. La guía emitida hoy destaca la clara necesidad de un debate franco y productivo sobre cómo las leyes, políticas, prácticas y prejuicios implícitos de bienestar de menores afectan a las comunidades de color.
Los datos muestran que determinados grupos raciales y étnicos tienen sobrerrepresentación en el sistema de bienestar de menores en comparación con sus números en la población general. La carta de orientación aborda las quejas de acceso racial e idiomático que los departamentos han recibido alegando una remoción innecesaria de los niños de sus familias biológicas; la denegación de igualdad de acceso a los padres biológicos a servicios de reunificación con competencia cultural; la denegación de colocaciones con familiares o parientes; estadías innecesariamente prolongadas en casas de acogida; y denegación de una participación plena e informada a familiares en los tribunales de familia y servicios sociales simplemente porque tienen conocimientos limitados del inglés a nivel oral, de lectura o de escritura.
“Esta guía ayudará a asegurar que todas las familias, sin importar el acceso racial o idiomático, puedan aceder a servicios de bienestar infantil libres de discriminación,” declaró la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, jefa de la División de Derechos Civiles del Departamento de Justicia. “La ley exige que todos los receptores de financiación federal ofrezcan programas, actividades y servicios de manera justa y equitativa sin importar la raza, el color o el origen nacional. Los sistemas de bienestar de menores estatales y locales tienen una enorme responsabilidad en el apoyo de familias y niños, y esperamos que esta guía ofrezca claridad respecto de la aplicación de obligaciones federales contra la discriminación a la crucial labor que realizan.”
“Esta guía conjunta es otro paso en la dirección correcta para remediar prácticas discriminatorias en las actividades de bienestar de menores,” declaró la Directora de la Oficina de Derechos Civiles del HHS Jocelyn Samuels. “Todos los profesionales en los sistemas estatales y locales de bienestar de menores tienen la obligación de comprender y cumplir con las leyes federales que protegen a las familias y los niños en las comunidades a las que sirven. Esperamos que esta guía ofrezca estrategias de amplio alcance para que las agencias de bienestar de menores aborden las prácticas discriminatorias en sus programas y actividades.”
“Es fundamental para las familias y los niños que las decisiones tomadas por las agencias para el bienestar de menores sean sin discriminación, sea intencional o no,” dijo Mark Greenberg, Secretario Auxiliar para los Niños y las Familias (en funciones) del HHS. “Nosotros creemos que esta orientación ayudará a las agencias a servir mejor a los niños de todos los orígenes y proporcionar protecciones importantes para las familias y los niños.”
“Todos los niños y las familias merecen ser tratados con respeto y dignidad,” dijo el Comisionado Rafael López de la Administración de Niños, Jóvenes y Familias y Comisionado Auxiliar Interino del Buró de Menores. “Es crucial que trabajemos juntos para asegurarnos de que nuestros sistemas sean totalmente accesibles, transparentes y justos. Esta guía es un paso importante para garantizar que todas las familias, sin importar su raza, color u origen nacional, tengan igualdad de acceso a servicios y sean tratadas de manera justa en todo momento.”
El Buró de Menores de la ACF administra la financiación para agencias y tribunales de bienestar de menores. La ACF también brinda orientación y asistencia técnica a agencias de bienestar de menores respecto de las leyes de bienestar de menores. La Oficina de Derechos Civiles del HHS y la División de Derechos Civiles del Departamento de Justicia son responsables de garantizar que los sistemas de tribunales estatales y agencias de bienestar de menores financiados respectivamente cumplan con el Título VI y sus normas de implementación. El departamento también es responsable de garantizar una coacción sistemática y eficaz del Título VI en todas las agencias que reciben financiamiento federal.
Para información adicional sobre la División de Derechos Civiles, visitar www.justice.gov/crt. Para información adicional sobre el Buró de Menores de la ACF, visitar www.acf.hhs.gov/cb. Para información adicional sobre la Oficina de Derechos Civiles del HHS, visitar www.hhs.gov/ocr/.
Title VI Child Welfare Guidance SpanishDepartments of Justice and Health and Human Services Issue Joint Guidance for Child Welfare SystemsRead the Press Release
The Justice Department and the Department of Health and Human Services (HHS) issued a joint guidance letter today to state and local child welfare systems on the requirements of Title VI of the Civil Rights Act of 1964 and its implementing regulations. Title VI prohibits discrimination on the basis of race, color and national origin in programs and activities receiving federal financial assistance.
The guidance aims to ensure that child welfare systems know about their responsibilities to protect the civil rights of children and families. The guidance is part of an ongoing partnership between the departments to help child welfare agencies protect the well-being of children and ensure compliance with federal nondiscrimination laws. Last year, the departments issued guidance on the intersection of child welfare requirements and Title II of the Americans with Disabilities Act, as well as Section 504 of the Rehabilitation Act. The guidance issued today highlights the clear need for frank and productive discussion about how child welfare laws, policies, practices and implicit bias affect communities of color.
Data shows that particular racial and ethnic groups are overrepresented in the child welfare system compared to their numbers in the general population. The guidance letter addresses race and language access complaints that the departments have received alleging unnecessary removal of children from their biological families; biological parents being denied equal access to culturally competent reunification services; denial of relative or kinship placements; unnecessarily long stays in foster care; and family members being denied full and informed participation in family courts and social services simply because they have limited proficiency in speaking, reading, writing or understanding the English language.
“This guidance will help ensure that all families, regardless of race or language access, can access child welfare services free from discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The law requires that all recipients of federal funding deliver programs, activities and services in a fair and equal manner regardless of race, color or national origin. State and local child welfare systems carry a tremendous responsibility in supporting families and children, and we hope this guidance provides clarity regarding the application of federal nondiscrimination obligations to their critical efforts.”
“This joint guidance is another step in the right direction to remedy discriminatory practices in child welfare activities,” said Director Jocelyn Samuels of HHS’ Office for Civil Rights. “All professionals in state and local child welfare systems have an obligation to understand and adhere to the federal laws that protect the families and children in the communities that they serve. We hope this guidance offers far-reaching strategies for child welfare agencies to address discriminatory practices in their programs and activities.”
“It’s crucial to families and children that the decisions made by child welfare agencies are made without intentional or unintended discrimination,” said Acting Assistant Secretary Mark Greenberg of HHS’s Administration for Children and Families (ACF). “We believe this guidance will help agencies better serve children of all backgrounds and provide important protections for families and children.”
“All children and families deserve to be treated with respect and dignity,” said Commissioner Rafael López of the Administration on Children, Youth and Families and Acting Associate Commissioner of the Children’s Bureau. “It is critical that we work together to ensure that our systems are fully accessible, transparent and just. This guidance is an important step to ensuring that all families, regardless of race, color or national origin, have equal access to services and are treated fairly at all times.”
The ACF’s Children’s Bureau administers funding for child welfare agencies and courts. ACF also provides guidance and technical assistance to child welfare agencies regarding child welfare law. HHS’ Office for Civil Rights and the Justice Department’s Civil Rights Division are responsible for ensuring that their respectively-funded state court systems and child welfare agencies comply with Title VI and its implementing regulations. The department is also responsible for ensuring consistent and effective enforcement of Title VI across federal funding agencies.
Additional information about the Civil Rights Division is available at www.justice.gov/crt. Additional information about ACF’s Children’s Bureau is available at www.acf.hhs.gov/cb. Additional information about the HHS’s Office for Civil Rights is available at www.hhs.gov/ocr/.
Title VI Child Welfare GuidanceWest Virginia Business Owners Plead Guilty to Failing to Pay Employment TaxesRead the Press Release
Two Wayne County, West Virginia business owners pleaded guilty today to federal employment tax charges, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Carol A. Casto for the Southern District of West Virginia.
Michael Taylor, 48, pleaded guilty to one count of conspiracy to defraud the United States in the ascertainment, computation, assessment and collection of employment tax from mid-2007 through 2010. Jeanette Taylor, 44, pleaded guilty to one count of failing to pay over employment tax for the last quarter of 2009.
According to documents filed with the court, from 2000 through 2010, Michael Taylor and Jeanette Taylor owned and operated a construction business in Wayne, West Virginia, that transported steel and sold gravel and concrete throughout West Virginia and Kentucky. The Taylors changed the name of the business several times, though the operations of the business remained the same. From 1999 to 2004, the business operated as Taylor Contracting & Taylor Ready-Mix LLC. In 2004, the name changed again to Taylor Contracting/Taylor Ready-Mix LLC. In 2010, the name changed a third time to Bluegrass Aggregates.
Both Michael Taylor and Jeanette Taylor were responsible for collecting, accounting for and paying over to the Internal Revenue Service (IRS) federal income taxes and social security and Medicare taxes that were withheld from the wages of their employees. From July 2007 through 2010, the Taylors withheld over $850,000 from their employees’ paychecks. Instead of paying over the withheld taxes to the IRS, the Taylors used the funds to purchase property and finance their horse farm. The Taylors also failed to pay over $490,000 in employment taxes for a prior business. The total tax loss for the Taylors’ conduct is $1.4 million.
The sentencing hearing has been scheduled for Jan. 23, 2017. The Taylors each face a statutory maximum sentence of five years in prison, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Casto commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Mara Strier of the Tax Division, who are prosecuting this case. Principal Deputy Assistant Attorney General Ciraolo also thanked IRS Field Collection for their significant work on this matter.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Two Former Drug Enforcement Administration Task Force Officers Charged with Drug Conspiracy, Weapons Offenses and Other CrimesRead the Press Release
Two former Drug Enforcement Administration (DEA) task force officers were charged in a superseding indictment unsealed today with drug conspiracy, weapons offenses, robbery, obstruction of justice and falsification of records in federal investigations.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge Monte A. Cason of the Department of Justice Office of the Inspector General (DOJ OIG) Dallas Field Office and Deputy Chief Inspector Brian M. McKnight of the DEA’s Office of Professional Responsibility (OPR) made the announcement.
Karl Emmett Newman, 49, of Kentwood, Louisiana, and Johnny Jacob Domingue, 27, of Maurepas, Louisiana, were indicted by a federal grand jury in the U.S. District Court for the Eastern District of Louisiana on Oct. 7, 2016. Newman is charged with one count of conspiracy to possess with intent to distribute cocaine and oxycodone, one count of interference with commerce by robbery, one count of possessing a firearm during a crime of violence, one count of possessing a firearm during a drug trafficking crime, two counts of unlawful conversion of property by a government officer or employee, two counts of falsifying records in a federal investigation and one count of obstruction of justice. Domingue is charged with one count of falsifying records in a federal investigation. Newman was originally charged on May 13, 2016, in a now-unsealed indictment, and was arrested on that date. Domingue was arrested on a now-unsealed criminal complaint on May 12, 2016.
In addition to serving as DEA task force officers, Newman and Domingue previously served as deputies with the Tangipahoa Parish, Louisiana, Sheriff’s Office.
The charges and allegations contained in an indictment are only accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI, DOJ OIG and DEA-OPR investigated the case. Assistant Chief Diidri Robinson and Trial Attorney Antonio Pozos of the Criminal Division’s Fraud Section are prosecuting the case.
Court Shuts Down South Florida Tax Return PreparerRead the Press Release
Today, a federal court in West Palm Beach, Florida permanently barred Renel Herard, individually and doing business as Herard Tax Services and Herard Security & Training Inc., from preparing federal tax returns for others. In addition to enjoining Herard from preparing, filing or assisting in the preparation or filing of federal tax returns, amended returns, or any other related documents, the court ordered Herard to publish, at his own expense, notice of the injunction for 14 consecutive days in The Palm Beach Post and Radio Vision Nouvelle (WPOM 1600 AM) and to prominently post a copy of the final injunction in the front window of the defendants’ offices until April 30, 2017. The court also ordered Herard to turn over to the United States a list of all customers for whom Herard or his businesses prepared returns after Jan. 1, 2015, and to provide a copy of the injunction order to anyone with whom Herard worked to prepare or file tax returns for others.
On Feb. 26, the government filed suit against Herard and alleged that returns prepared by Herard and his businesses have unlawfully understated customers’ income tax liabilities by creating or inflating deductions or fabricating business losses for non-existent businesses and have overstated refunds by falsely claiming tax credits, including education credits, fuel tax credits and medical and child care expenses for ineligible taxpayers who did not incur qualified expenses. The government alleged that, beginning with returns he prepared for the 2014 tax year, Herard prepared returns that falsely claimed the Premium Tax Credit, a refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace aka the Exchange, by claiming it for customers who did not purchase health insurance through the Exchange.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. 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.
Woman Formerly Residing in Maryland Pleads Guilty to Conspiracy to Commit Money Laundering in Connection with International Lottery Fraud SchemeRead the Press Release
Samaiyah Sharron Armistead, who currently resides in Las Vegas, Nevada, pleaded guilty today in the U.S. District Court for the District of Maryland to one count of conspiracy to commit money laundering, the Department of Justice announced. The money laundering was part of an international lottery fraud scheme involving co-conspirators in Florida and Jamaica.
As part of her guilty plea, Armistead agreed that had the case gone to trial, the United States would have proved beyond a reasonable doubt that in February 2014, she received $7,500 in cash at the direction of a co-conspirator and then deposited most of that money into two bank accounts controlled by the co-conspirator. In addition, Armistead received $32,500 in cash on April 22, 2014, at a pickup point in Berlin, Maryland, where she was scheduled to meet a victim of a lottery scheme. Instead, Armistead was arrested by police at the pickup point after being handed the money by an undercover officer.
“The Justice Department is committed to combatting international lottery fraud schemes,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Conspiring to launder money is a serious crime because it hides other criminal activity and its success encourages fraudsters to continue their schemes. The Justice Department will continue to prosecute those who seek to conceal criminal activity through money laundering.”
An information charging Armistead with conspiracy to commit money laundering was filed on Sept. 7. According to the charging document, Armistead agreed with other persons to knowingly conduct a financial transaction that involved the proceeds of unlawful activity, knowing that the property involved in the transaction represented the proceeds of some form of unlawful activity and knowing that the transaction was designed to conceal and disguise the nature, location, source, ownership and control of the proceeds of the unlawful activity. The government was not required to prove that Armistead knew the details of the fraud, but the government did need to establish that Armistead believed the money was connected to an illegal activity.
In this case, the money was proceeds of a fraudulent lottery fraud scheme, involving a co-conspirator in the United States and another in Jamaica. As part of the scheme, a victim was falsely told that she had won a multi-million dollar lottery prize. To collect the prize, the victim was fraudulently instructed to pay taxes and other up-front fees. The victim then sent money to various individuals, including the $40,000 that Armistead ultimately received.
“The US Postal Inspection Service is dedicated as part of it mission to ensure that these types of predatory schemes are investigated aggressively,” said U.S. Postal Inspector in Charge Antonio J. Gomez of the Miami Division. “It is imperative that we continue to work with our partners to protect those vulnerable individuals in our society who fall prey to these schemes so that the U.S. mail isn't used in furtherance of them.”
“This investigation is another example of the importance of state, federal and local law enforcement coordination to identify and dismantle a complex and cross-border criminal enterprise,” said Maryland State Police Superintendent Colonel William Pallozzi. “The dedicated efforts of troopers, federal agents and prosecutors, deputies, and local police officers ended an illegal operation.”
Armistead faces a statutory maximum sentence of 20 years in prison and a fine of $500,000 when she is sentenced on Dec. 22 at 2 p.m.
This prosecution is part of the Department of Justice’s effort to work with federal and local law enforcement to combat fraudulent lottery schemes in Jamaica that prey on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
Principal Deputy Assistant Attorney General Mizer and U.S. Attorney Rod J. Rosenstein for the District of Maryland commended the investigation by the U.S. Postal Inspection Service, the U.S. Department of Homeland Security and the Maryland State Police. The case was prosecuted by Trial Attorney David A. Frank and Counsel Melanie Singh of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Evan T. Shea.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Maryland, visit its website at. https://www.justice.gov/usao-md.
Nation’s Largest Nursing Home Pharmacy to Pay over $28 Million to Settle Kickback AllegationsRead the Press Release
The nation’s largest nursing home pharmacy, Omnicare Inc., has agreed to pay $28.125 million to resolve allegations that it solicited and received kickbacks from pharmaceutical manufacturer Abbott Laboratories in exchange for promoting the prescription drug, Depakote, for nursing home patients. CVS Health Corporation, which is headquartered in Rhode Island, acquired Ohio-based Omnicare in 2015, approximately six years after Omnicare ended the conduct that gave rise to the settlement.
“Every day, elderly nursing home residents suffering from dementia rely on the independent judgment of our nation’s healthcare professionals for their personal care and their medical treatment,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division. “Kickbacks to entities making drug recommendations compromise their independence and undermine their role in protecting nursing home residents from the use of unnecessary drugs.”
Nursing homes rely on consultant pharmacists, such as those employed by Omnicare, to review their residents’ medical charts at least monthly and make recommendations to their physicians about what drugs should be prescribed for those residents. The settlement announced today resolves allegations that Omnicare solicited and received kickbacks from Abbott in exchange for recommending that physicians prescribe Depakote, an anti-epileptic drug manufactured by Abbott, to elderly nursing home residents.
According to the government’s complaint, Omnicare disguised the kickbacks it received from Abbott in a variety of ways. Abbott allegedly made payments to Omnicare described as “grants” and “educational funding,” even though their true purpose was to induce Omnicare to recommend Depakote. For example, Omnicare allegedly solicited substantial contributions from Abbott and other pharmaceutical manufacturers to its “Re*View” program. Although Omnicare claimed that Re*View was a “health management” and “educational” program, the complaint alleges that it was simply a means by which Omnicare solicited kickbacks from pharmaceutical manufacturers in exchange for increasing the utilization of their drugs on elderly nursing home residents. In internal documents, Omnicare allegedly referred to Re*View as its “one extra script per patient” program. The complaint also alleges that Omnicare entered into agreements with Abbott by which Omnicare was entitled to increasing levels of rebates from Abbott based on the number of nursing home residents serviced and the amount of Depakote prescribed per resident. Finally, the complaint alleges that Abbott funded Omnicare management meetings on Amelia Island, Florida, offered tickets to sporting events to Omnicare management and made other payments to local Omnicare pharmacies.
In May 2012, the United States, numerous states and Abbott entered into a $1.5 billion global civil and criminal resolution that, among other things, resolved Abbott’s liability under the False Claims Act for alleged kickbacks to nursing home pharmacies, including Omnicare and PharMerica Corp. In October 2015, PharMerica agreed to pay $9.25 million to the United States and numerous states to resolve civil liability under the False Claims Act for the alleged kickbacks from Abbott. The settlement announced today resolves Omnicare’s role in that alleged kickback scheme.
“This settlement ensures that some of the most vulnerable amongst us, those suffering from dementia, are provided with the level of care they deserve,” said U.S. Attorney John P. Fishwick Jr. for the Western District of Virginia. “Families and loved ones who make the difficult decision to place those they care about into a nursing home must do so with the confidence that medical decisions are being made with the interests of the patient in mind, not big drug companies.”
Approximately $20.3 million of the settlement will go to the United States, while $7.8 million has been allocated to cover Medicaid program claims by states that elect to participate in the settlement. The Medicaid program is jointly funded by the federal and state governments.
“It is disturbing that any health care corporation would pay kickbacks that corrupt the professional medical decision making process in order to pad their profits,” said Special Agent in Charge Nicholas DiGiulio of the Department of Health and Human Services Office of Inspector General (HHS OIG). “These practices are unacceptable and will not be tolerated.”
The settlement with Omnicare announced today, together with the prior settlements with Abbott and PharMerica, resolves allegations in two lawsuits filed in federal court in the Western District of Virginia by Richard Spetter and Meredith McCoyd, former Abbott employees. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in part in this case in May 2014. The United States filed a complaint-in-intervention against Omnicare in December 2014. As part of today’s resolution, McCoyd will receive $3 million from the federal share of the settlement amount.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.”
This matter was jointly handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Virginia, HHS-OIG, the Office of the Attorney General for the Commonwealth of Virginia and the National Association of Medicaid Fraud Control Units.
The cases are captioned United States ex rel. Spetter v. Abbott Labs., et al., Case No. 10-cv-00006 (W.D. Va.) and United States ex rel. McCoyd v. Abbott Labs., et al., Case No. 07-cv-00081 (W.D. Va.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Justice Department Settles Immigration-Related Discrimination Claim Against American Cleaning CompanyRead the Press Release
The Justice Department reached a settlement today with American Cleaning Company (ACC) resolving claims that the company discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA). ACC is a maintenance and janitorial company based in Brighton, Massachusetts.
The department’s investigation found that from at least Jan. 15, 2009, until at least Sept. 30, 2015, ACC routinely required workers who are not U.S. citizens to produce specific documents for the Form I-9 and E-Verify processes, whereas U.S. citizens were permitted to choose whatever valid documentation they wished to prove their work authorization. Under the INA, all workers, including non-U.S. citizens, must be allowed to choose whichever valid documentation they would like to present to prove their work authorization. It is unlawful for an employer to limit employees’ choice of documentation because of their citizenship or immigration status.
Under the terms of the settlement agreement, ACC will pay $195,000 in civil penalties, train its human resources staff on the anti-discrimination provision of the INA and review and revise its policies and procedures to conform to the requirements of the INA’s anti-discrimination provision.
“Federal law prohibits discrimination against workers based on their citizenship or immigration status, including during the employment eligibility verification process,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This Civil Rights Division will continue to protect the rights of lawful, authorized workers to do their jobs without facing discriminatory barriers.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) 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 in employment eligibility verification; retaliation and intimidation.
To learn more about the protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
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 the worker hotline above for assistance.
American Cleaning Company Settlement AgreementFormer Arkansas State Judge Charged with Fraudulently Dismissing Cases and Tampering with WitnessesRead the Press Release
A former Arkansas State Judge was charged in an indictment unsealed today for perpetrating a fraud and bribery scheme in which he dismissed cases on his docket in exchange for personal benefits, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
O. Joseph Boeckmann, 70, of Wynne, Arkansas, was charged with eight counts of wire fraud and honest services wire fraud, 11 counts related to bribery and two counts of witness tampering in an indictment filed on Oct. 4, 2016, in the Eastern District of Arkansas. Boeckmann was arrested today and made his initial appearance this afternoon.
As alleged in the indictment, from 2010 to 2015, Boeckmann served as a district judge for the First Judicial District of Arkansas. In his capacity as a district judge, Boeckmann dismissed traffic citations and misdemeanor criminal charges for young men in exchange for acts that he claimed were “community service,” but which actually benefited Boeckmann himself. The indictment alleges that on some occasions, Boeckmann used his access to these individuals during their purported “community service” in order to take photographs of the men in compromising positions. On other occasions, he allegedly dismissed cases in exchange for photographing the men while they were naked, among other things.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated this case with assistance of the Arkansas State Police and the Arkansas Judicial Discipline and Disability Commission. Trial Attorneys Jonathan Kravis and Peter Halpern of the Criminal Division’s Public Integrity Section and Special Prosecutor Jack McQuary of the Arkansas Prosecuting Attorney’s Association are prosecuting the case.
Three Kansas Men Charged with Plotting a Bombing Attack Targeting the Local Somali Immigrant CommunityRead the Press Release
Curtis Allen and Gavin Wright, both 49, and of Liberal, Kansas, and Patrick Eugene Stein, 47, of Wright, Kansas, appeared in federal court to face a charge of conspiring to use a weapon of mass destruction (explosives), in connection with their plot to detonate bombs at an apartment complex in Garden City, Kansas where Somali immigrants live and worship.
The announcement was made by Assistant Attorney General for National Security John P. Carlin and Acting U.S. Attorney Tom Beall of the District of Kansas.
“According to the complaint, these three defendants conspired to conduct a bombing attack against an apartment complex occupied by men, women and children in the Garden City, Kansas community,” said Assistant Attorney General Carlin. “Protecting our nation from such attacks, whether they are rooted in domestic or international terrorism, is our highest priority.”
“These charges are based on eight months of investigation by the FBI that is alleged to have taken the investigators deep into a hidden culture of hatred and violence,” said Acting U.S. Attorney Beall. “Many Kansans may find it as startling as I do that such things could happen here.”
The complaint alleges that since February the FBI has been investigating the defendants’ activities, including their plans to carry out a violent attack against Muslims in southwestern Kansas. The defendants were key members of a militia group that referred to itself as the Crusaders. A confidential source attended meetings of the group and provided the FBI with information about the defendants’ activities.
The criminal complaint alleges that the men conducted surveillance to identify potential targets, stockpiled firearms, ammunition and explosive components, and planned to issue a manifesto in conjunction with the planned bombing. The attack, the defendants said, would be intended to “wake people up.”
After considering possible targets, the defendants decided to conduct the attack on a Garden City, Kansas apartment complex that houses a mosque and a large number of members of the Somali community. They discussed obtaining four vehicles, filling them with explosives and parking them at the four corners of the apartment complex to create a large explosion.
On Oct.12, Stein met with an undercover FBI employee in rural Finney County, Kansas. After examining and test firing automatic weapons, Stein took the source to see the apartment building that the defendants were targeting in Garden City, Kansas. Stein said he would provide ammonium nitrate for the bomb and contribute $200 to $300 for other materials.
Stein also talked with the undercover employee about defendant Allen’s arrest in a domestic violence case in Liberal, Kansas the previous day, Oct. 11. Stein said he was concerned that Allen’s girlfriend would give the Liberal Police Department in Kansas information about the defendants’ plans.
If convicted, the defendants face a maximum sentence of life in federal prison.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Investigating agencies included the FBI, the Liberal Police Department, the Seward County Sheriff’s Office, the Ford County Sheriff’s Office, the Garden City Police Department, the Dodge City Police Department, the Finney County Sheriff’s Office, and Kansas Highway Patrol, and the Kansas Bureau of Investigation. Assistant U.S. Attorney Tony Mattivi for the District of Kansas and Counterterrorism Section Trial Attorney David Cora are prosecuting this case.
Israeli Executive Extradited and Arraigned on Fraud Charges Involving the Foreign Military Financing ProgramRead the Press Release
An Israeli national was extradited from Bulgaria and arraigned on charges arising from his participation in multiple schemes to defraud a multi-billion dollar United States foreign aid program, the Department of Justice announced today.
According to the allegations contained in a five-count indictment filed in the United States District Court for the District of Connecticut in Hartford, Yuval Marshak, a former owner and executive of an Israel-based defense contractor, carried out three separate schemes between 2009 and 2013 to defraud the Foreign Military Financing program (FMF) and used a company in the United States to launder some of the proceeds of his fraud.
Marshak and others falsified bid documents to make it appear that certain FMF contracts had been competitively bid when they had not, according to the indictment. Marshak further caused false certifications to be made to the United States Department of Defense (DOD) stating that no commissions were being paid and no non-United States content was used in these contracts, when, in fact, Marshak had arranged to receive commissions and to have services performed outside the United States, all in violation of the DOD’s rules and regulations. Marshak arranged for these undisclosed commission payments to be made to a Connecticut-based company that was owned by a close relative to disguise the true nature and destination of these payments.
“By falsifying bid documents and receiving undisclosed side payments through a company in the United States, Marshak’s actions threatened the integrity of the FMF program, through which the United States government provides billions of dollars each year in foreign aid to countries around the world,” said Acting Assistant Attorney General Renata Hesse of the Department of Justice’s Antitrust Division. “Marshak’s extradition marks another step forward in our efforts to coordinate investigations with foreign authorities and is further evidence that the Antitrust Division will continue to vigorously pursue individuals and companies that compromise essential government programs regardless of where they reside.”
“This alleged fraud scheme targeting the FMF program erodes public confidence in the United States government to properly execute our fiduciary responsibilities for spending United States tax dollars in an efficient and prudent manner,” said Special Agent in Charge Craig W. Rupert of the U.S. Department of Defense’s Defense Criminal Investigative Service (DCIS). “DCIS and its federal and international partners will continue to pursue and investigate similar fraud allegations in order to shield the American taxpayers' investment in defense.”
“This indictment shows that the Department of Justice will work tirelessly to bring those like Mr. Marshak who are alleged to have defrauded our country's foreign aid programs to justice – even those who reside abroad,” said U.S. Attorney Deirdre M. Daly of the District of Connecticut.
The United States spends billions of dollars each year through the FMF program to provide foreign governments, including Israel, with money which must be used to purchase American-made military goods and services. The rules and regulations of the FMF program require the disclosure of and approval for any FMF-funded commissions and require that all goods and services be of United States origin to qualify for FMF funding. These same rules also strongly encourage the use of competitive bidding in the award of all FMF contracts. American vendors who receive FMF funded contracts are required to certify their compliance with these regulations to the DOD.
Marshak is charged with two counts of wire fraud, one count of mail fraud, one count of major fraud against the United States and one count of international money laundering. The wire and mail fraud charges carry a maximum penalty of 20 years in prison and a $250,000 fine. The major fraud against the United States count carries a maximum penalty of 10 years in prison and a $1 million fine, while the international money laundering charge carries a maximum penalty of 20 years in prison and a $500,000 fine.
As a result of the investigation, earlier this year the Antitrust Division entered into a non-prosecution agreement with Octal Corp., a New Jersey-based defense contractor that received one of the FMF contracts at issue. Octal acknowledged that its employees concealed the agreement to pay, and the payment of, the commission on the FMF contract the company received and falsely denied the commission in a written certification to the DOD. Under the terms of this agreement, Octal agreed to cooperate in the division’s investigation and to pay a monetary penalty of $100,000 and $360,000 in restitution to the DOD.
The Antitrust Division also entered into a non-prosecution agreement with Hale Products Inc., a Florida-based company that received another FMF contract referenced in the indictment. Hale acknowledged that, in connection with this FMF contract, its employees concealed the agreement to pay, and the payment of, the commission and falsely denied the commission in a written certification to the DOD. Hale agreed to cooperate in the division’s investigation and to pay a monetary penalty of $50,000 and $10,200 in restitution to the DOD.
Marshak is being prosecuted by the Antitrust Division’s New York Office and the Defense Criminal Investigative Service, with assistance from the United States Attorney’s Office for the District of Connecticut and Israel’s Ministry of Defense. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to government contracts should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, or visit www.justice.gov/atr/contact/newcase.html.
Former Coach USA Inc. Executive Pleads Guilty to Attempting to Obstruct JusticeRead the Press Release
A former executive of Coach USA Inc. was criminally charged with obstructing justice and pleaded guilty today for concealing and attempting to destroy documents relevant to a civil antitrust investigation and for providing false and misleading statements during the course of the litigation, the Department of Justice announced.
Ralph Groen, of North Carolina, the former vice president of information technology for Coach USA Inc., admitted to directing his subordinates to conceal and destroy documentary materials relevant to the investigation and providing false and misleading statements to Coach’s investigators, and the Antitrust Division, according to court documents filed in this case in the U.S. District Court for the Southern District of New York. Additionally, according to court documents, Groen admitted to denying the existence of backup practices and procedures during a deposition taken as part of the litigation.
“Simply put, executives who obstruct Antitrust Division investigations will be vigorously prosecuted,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “It is critical that the division has access to all relevant information to evaluate the potential harm to consumers of the conduct we investigate, and Groen’s actions in this case denied the division that access.”
“With today’s guilty plea, Mr. Groen took responsibility for concealing and destroying documents in a civil antitrust investigation and then lying about it,” said Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office. “The FBI continues to work together with our partners to protect the integrity of our judicial system and ensure that those who make false and misleading statements under oath are held accountable criminally.”
The civil litigation, which was filed in the United States District Court for the Southern District of New York, related to the New York City hop-on, hop-off tour bus market and challenged Coach USA Inc.’s and City Sights LLC’s formation of the Twin America LLC joint venture in 2009. On November 17, 2015, the district court entered a Final Judgment requiring Coach and City Sights to pay $7.5 million in disgorgement and to make divestitures to address the competitive harm alleged in the division's lawsuit.
Groen Information
This investigation into obstruction of justice is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Washington Field Office. Anyone with information on price fixing, bid rigging and other anticompetitive conduct should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit http://www.justice.gov/atr/contact/newcase.html or call the FBI’s Washington Office at 202-278-2000.Baltimore Man Pleads Guilty to Damaging Property of a Reproductive Health Services FacilityRead the Press Release
Travis Reynolds, 21, of Baltimore, pleaded guilty today to one count of violating the Freedom of Access to Clinic Entrances (FACE) Act, which makes it a federal crime to damage the property of a reproductive health services facility because of the services offered there.
The charge stems from incidents that occurred late in the evening on Feb. 24, 2016, and early in the morning on Feb. 25, 2016, when Reynolds and another man decided to vandalize a Baltimore area women’s health care clinic. Reynolds spray-painted the words “Baby Killer,” “Kill Baby Here” and other graphic messages across the building where the clinic is located.
During his guilty plea before U.S. Magistrate Judge Beth Gesner of the District of Maryland, Reynolds admitted that he vandalized the clinic because it offered abortion services. At the time of his arrest, Reynolds admitted to police that he defaced the clinic’s doors, walls and windows because he thought that it would deter women from using the clinic.
“The Justice Department will continue to aggressively enforce the FACE Act, which makes it a crime to intentionally damage a clinic because it offers reproductive health services,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “While people have a First Amendment right to peacefully express their views, they do not have a right to vandalize clinics in the hopes of deterring women from receiving lawful services that those facilities provide.”
The case was investigated by the FBI and the Baltimore County Police Department. The case was prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division’s Criminal Section, with assistance from the U.S. Attorney’s Office of the District of Maryland.
Reynolds Plea AgreementAlabama Man Sentenced to Prison for His Role in Stealing Identities from His EmployerRead the Press Release
A Phenix City, Alabama man was sentenced to 24 months in prison today for his role in a stolen identity refund fraud (SIRF) scheme, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
According to documents filed with the court, Kenneth Fearson, 31, worked at a warehouse that contained employee records for a Columbus, Georgia, company. The warehouse contained employees’ Forms W-4. Fearson assisted in selling the Forms W-4 to other individuals, including Charnesha Alexander. Alexander and others used these Forms W-4 to prepare and file fraudulent tax returns.
Fearson pleaded guilty to one count of aggravated identity theft in July. Following his prison term, Fearson will serve six months of supervised release. In March, Alexander was sentenced to 111 months in prison.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael Boteler and Michael Hatzimichalis of the Tax Division and Assistant U.S. Attorney Jonathan Ross, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Outlines Plan to Enable Nationwide Collection of Use of Force DataRead the Press Release
Today, Attorney General Loretta E. Lynch announced several steps by the Department of Justice to enable the nationwide collection of data on law enforcement interactions with civilians, including data related to the use of force by law enforcement officers.
“Accurate and comprehensive data on the use of force by law enforcement is essential to an informed and productive discussion about community-police relations,” said Attorney General Lynch. “The initiatives we are announcing today are vital efforts toward increasing transparency and building trust between law enforcement and the communities we serve. In the days ahead, the Department of Justice will continue to work alongside our local, state, tribal and federal partners to ensure that we put in place a system to collect data that is comprehensive, useful and responsive to the needs of the communities we serve.”
The President’s Task Force on 21st Century Policing called on law enforcement to “collect, maintain and report data . . . on all officer involved shootings, whether fatal or nonfatal, as well as any in-custody death,” and the department is committed to heeding this call. In 2014, Congress passed the Death in Custody Reporting Act (DCRA), which required states and federal law enforcement agencies to submit data to the department about civilians who died during interactions with law enforcement or in their custody (whether resulting from use or force or some other manner of death, such as suicide or natural causes) and authorized the Attorney General to impose a financial penalty on non-compliant states. However, Congress did not impose a similar reporting requirement for non-lethal uses of force by law enforcement. In the absence of a statutory mandate, and in an effort to close this gap, the department is partnering with local, state, tribal and federal law enforcement to provide a means for national data collection. In 2015, and in collaboration with local, state, tribal and federal law enforcement the Federal Bureau of Investigation (FBI) began work on a “National Use of Force Data Collection,” an online portal to collect use-of-force data from law enforcement agencies across the country.
The Attorney General announced additional details regarding these efforts:
- National Use-of-Force Data Collection. At the request of local, state, tribal and federal law enforcement agencies, the FBI has been working with such agencies to develop a National Use of Force Data Collection program. The FBI announced the proposed pilot program last week in the Federal Register. The pilot study will evaluate the effectiveness of the methodology used to collect the data and the quality of the information collected. The FBI is seeking comment from all interested parties, including local, state, tribal and federal law enforcement, civil rights organizations and other community stakeholders. After reviewing and addressing these comments, the FBI will issue a final proposal and plans to begin the pilot data collection program in early 2017. The pilot study participants are expected to include the largest law enforcement agencies, as well as the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and U.S. Marshals Service.
- DCRA Compliance. Earlier this summer, the department’s Bureau of Justice Statistics (BJS) issued a draft proposal outlining its plan for collecting death-in-custody data from state and local law enforcement agencies. Last week, the first public comment period closed, with several thousand comments received. The department is currently reviewing those comments and it plans to issue an updated proposal in the near future.
- Federal Reporting under DCRA. The DCRA requires federal law enforcement agencies to report information on deaths that occur during interactions with federal law enforcement agencies or in their custody, beginning with Fiscal Year 2016 (FY2016) data. FY2016 ended September 30. The Attorney General has issued a memorandum to federal law enforcement agencies formally notifying them of their reporting obligations under the DCRA and directing them to BJS for further coordination.
- Police Data Initiative (PDI). The department’s Community Oriented Policing Services (COPS) Office announced today that it has assumed leadership of the Police Data Initiative (PDI), a data transparency project initiated by the White House in 2015. Through PDI, participating law enforcement agencies commit to publicly releasing at least three policing datasets, which can include data on stops and searches, uses of force, officer-involved shootings, and other police actions. Numerous foundations, organizations and companies have stepped up to help. The PDI currently includes 129 law enforcement agencies, covering more than 44 million people across the country. To assist with this effort, the COPS Office recently awarded the Police Foundation a $750,000 cooperative agreement through FY2016 funding to support PDI. Over the next two years, the Police Foundation will work with a cohort of approximately 100 law enforcement agencies to develop promising practices for police open data usage, support community engagement regarding policing data and provide technical assistance to law enforcement agencies to collect and publish open data sets.
These initiatives demonstrate once again the department’s deep commitment to the ideals of the President’s Task Force. The department will continue to work with local, state, tribal and federal agencies to encourage and support data collection and transparency beyond these projects.