District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Washington State CPA Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Understated Gross Receipts by Approximately $1.8 Million
A Spokane, Washington certified public accountant was sentenced yesterday to 15 months in prison for making and subscribing false corporate income tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Michael C. Ormsby for the Eastern District of Washington.
According to documents filed with the court, Roger Stadtmueller owned and operated Stadtmueller & Associates P.S., an accounting firm that offered accounting and consulting services, including income tax preparation, bookkeeping and financial auditing. Stadtmueller also owned Zazz, Inc., the corporate entity under which Stadtmueller & Associates P.S. conducted business. Stadtmueller willfully made and subscribed false and fraudulent corporate income tax returns for Zazz, Inc. for 2006, 2007 and 2008, which understated gross receipts by approximately $1.8 million.
“As a tax professional, Roger Stadtmueller was clearly aware of his legal obligation to honestly and accurately report corporate income, and willfully disregarded this obligation when he filed false corporate income tax returns,” said Principal Deputy Assistant Attorney General Ciraolo. “With yesterday’s sentence, Mr. Stadtmueller pays a substantial price for his criminal conduct. The department, together with its colleagues in the Internal Revenue Service (IRS) and other law enforcement partners, will continue to pursue and prosecute those who violate our nation’s tax laws.”
Stadtmueller pleaded guilty on July 26. In addition to the prison term, Stadtmueller was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $400,000.
“It really is inconceivable that a CPA would cheat on his own corporate returns, but that is exactly what Roger Stadtmueller did,” said Special Agent in Charge Darrell Waldon of IRS-Criminal Investigation (CI). “Now the accountant is being held accountable. Accountants are known for their trustworthiness and integrity and IRS-CI exists to ensure that those qualities permeate our tax system. When someone violates those principles, and in so doing breaks the law, they will be brought to justice.”
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Ormsby commended special agents of IRS-CI, who conducted the investigation and Senior Litigation Counsel Corey J. Smith and Trial Attorneys Lisa L. Bellamy and Eric C. Schmale 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.
U.S. Attorney Alicia Limtiaco Invited to Speak at the 21st International Summit on Violence, Abuse & TraumaRead the Press Release
ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that she and several members of the Guam Human Trafficking Task Force (HTTF) and the NMI Human Trafficking Intervention Coalition (HTIC) attended the 21st International Summit on Violence, Abuse & Trauma held on August 28-31, 2016, sponsored by the Institute on Violence Abuse and Trauma (IVAT). U.S. Attorney Limtiaco spoke on the topic of “Community Engagement and Reentry: Preparing Incarcerated Adults and Justice-Involved Youth for Reentry into the Community."
The IVAT strives to be a comprehensive resource, training and research center dealing with all aspects of violence, abuse and trauma. IVAT’s mission is to improve the quality of life for individuals on local, national and international levels by sharing and disseminating vital information, improving collaborations, networking, conducting research and trainings, assisting with direct professional services, providing program evaluations, and consulting to promote violence-free living.
U.S. Attorney Limtiaco and Victim Witness Coordinator Salome Blas shared information at the Pre-Summit on the efforts in the Pacific region of the U.S. Attorney’s Office and its various task forces, and the importance of a Pacific regional response to address violence prevention and enforcement issues.
U.S. Attorney Limtiaco and members of the Guam HTTF and NMI HTIC shared information on the Pacific Regional Response to Combat Human Trafficking Initiative (the “Initiative”), which is a collaborative effort of the U.S. Attorney’s Office for the Districts of Guam and the NMI; the U.S. Department of State, Office to Monitor and Combat Trafficking in Persons; the U.S. Department of Labor; the U.S. Department of Interior, Office of Insular Affairs; the Guam HTTF; the NMI HTIC; and other community partners. U.S. Attorney Limtiaco also elaborated on the intersection and relationship between human trafficking, sexual assault, child abuse and domestic and family violence, and prevention and enforcement efforts in the Pacific region.
The Initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement, prosecution, victim service providers, social services, medical, mental and public health professionals, faith based organizations, educational institutions, Consulates, and other community stakeholders. The Initiative calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. The Initiative also provides fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics to law enforcement, prosecution, victim service providers, social services, medical, mental and public health professionals, faith based organizations, educational institutions, Consulates, and other community stakeholders in our Pacific region island communities, which is critical to effective prevention and enforcement efforts in the region.
Photos below were taken at the Summit.
National Partnership to End Interpersonal Violence’s (NPEIV) Global Peace Action Plan Pre-Summit sessions U.S. Attorney Alicia Limtiaco during her presentation of “Community Engagement and Reentry: Preparing Incarcerated Adults and Justice-Involved Youth for Reentry into the Community" Participants at the IVAT Summit Some of the attendees from Guam, left to right: Rose Mafnas from the Guam Department of Education (GDOE), Salome Blas from the U.S. Attorney’s Office, Audriana Rios from Guam Police Department, U.S. Attorney Alicia Limtiaco, Taylor Amdal-Barela from the Guam Coalition Against Sexual Assault & Family Violence and Maricor Amande from GDOE Participants from Guam: Salome Blas from the U.S. Attorney’s Office, and Rose Mafnas, Maricol Amande and Steve Pangelinan from the GDOEOwners of Biofuel Company Plead Guilty to Conspiracy and Fraud ChargesRead the Press Release
The owners of an Indiana biofuel producer pleaded guilty to conspiracy, fraud and false statements for participating in a scheme that generated over $60 million in fraudulent tax credits and U.S. Environmental Protection Agency (EPA) renewable fuels credits (RIN credits) at Triton Energy LLC, a company that purported to produce and sell biofuel for use as transportation fuel.
Fred Witmer, 46, and Gary Jury, 58, pleaded guilty before U.S. District Magistrate Judge Magistrate Judge Susan Collins of the Northern District of Indiana, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance, Special Agent in Charge James D. Robnett for the Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge W. Jay Abbott of the FBI’s Indianapolis Field Office.
According to their pleas, Witmer and Jury were co-owners of Triton Energy LLC and Gen2 Renewable Diesel LLC, both located in Waterloo, Indiana. Witmer admitted to participating in a scheme with other coconspirators to fraudulently claim tax credits and RIN credits on non-qualifying renewable fuel. Although the credits required that the fuel be used domestically for transportation, Witmer admitted selling it for uses that included the production of fire starter logs and asphalt and also for power generation. Jury admitted to participating in a conspiracy to fraudulently claim tax credits and to providing false statements to the EPA.
As part of their pleas, Witmer agreed to serve a sentence of 57 months’ incarceration and Jury agreed to serve a sentence of 30 months’ incarceration. A sentencing hearing, has not yet been scheduled.
“Witmer, Jury, and their co-conspirators defrauded a program Congress had enacted to incentivize the production of biofuels and to help modernize our nation’s energy economy,” said Assistant Attorney General Cruden. “These serious crimes undermine these important public policies and this case demonstrates they will not go unpunished. The Justice Department will continue to vigorously prosecute those seeking to manipulate these programs for personal gain.”
“Eliminating fraud in the renewable fuels market is key to achieving the greenhouse gas reductions Congress intended under the Renewable Fuel Standard,” said Assistant Administrator Giles. “EPA is committed to holding those who violate the law accountable and ensuring a level playing field for companies that follow the rules.”
“When individuals, such as Mr. Witmer, Mr. Jury and their co-conspirators, use fraud and deceitful measures to take advantage of federal tax credits and incentives for personal gain, the harm is felt by all American taxpayers and our economy,” said Deputy Chief Don Fort for IRS-CI. “IRS-CI will continue to vigorously pursue individuals who attempt to undermine our tax system.”
“The FBI was pleased to be part of another renewable fuel fraud investigation in the state of Indiana, in this case targeting Mr. Witmer, Mr. Jury and their co-conspirators,” said Special Agent in Charge Abbott. “This fraud scheme also victimized U.S. Taxpayers who believe those who participate in these programs should abide by the rules which govern them. This multi-agency effort is indicative of the commitment of resources by the FBI against perpetrators seeking to take advantage of incentivized programs in place to modernize our domestic energy programs”
Wire Fraud is punishable by up to 20 years in prison. Conspiracy is punishable by up to five years in prison. False Statements to the EPA is punishable by up to two years in prison.
Assistant Attorney General Cruden commended the cooperative investigation by law enforcement, as well as Department of Justice Trial Attorney Adam Cullman and Senior Trial Attorney Jeremy Korzenik, who represented the United States in this case.
Justice Department Seeks to Shut Down Detroit-Area Tax Return PreparersRead the Press Release
Preparers Allegedly Fabricate Businesses Losses, Claim Fraudulent Credits In Order to Understate Their Customers’ Tax or Overstate their Refunds
Tax R Us, a Detroit-area tax return preparation business, unlawfully understates its customers’ income tax liabilities and overstates refunds by making deliberate misstatements on the returns, according to a new civil lawsuit filed by the Justice Department today. The suit, filed in federal court in Detroit, asks the court to permanently bar Tax R Us, Vannak Long, Rosalind Warnock, Jasmine Jackson and Mary Jackson from preparing tax returns for others. The suit also asks the court to order each of them to turn over a list of all of the tax returns they have prepared.
According to the complaint, Long, the owner of Tax R Us, frequently understated his customers’ gross receipts and overstated their business deductions to minimize their income subject to tax. The complaint also alleges that Warnock, a past Tax R Us preparer, and current Tax R Us preparers Jasmine Jackson and Mary Jackson prepared returns that fabricate self-employment businesses and business losses to offset their customers’ taxable income from other sources and to increase their customers’ Earned Income Tax Credit. In addition to this improper conduct, Warnock, Jasmine Jackson and Mary Jackson claimed education credits the customers are not entitled to receive, according to the complaint.
In the complaint, the government states that Warnock, Jasmine Jackson and Mary Jackson pleaded guilty to charges of preparing false tax returns. Jasmine Jackson was sentenced in August. Mary Jackson and Warnock are awaiting sentencing. According to the complaint, Long, Warnock, Jasmine Jackson and Mary Jackson’s fraudulent tax preparation caused more than $3 million of harm to the United States. The government alleges that Tax R Us has had many locations throughout the Detroit-area including: 7635 E. 8 Mile Road, Warren; 16900 E. Warren Street, Detroit; 6900 East 7 Mile Road, Detroit; 3157 Woodward Avenue, Detroit; 21234 Van Dyke Avenue, Warren; 14621 W 8 Mile Road, Detroit; and 143 South Telegraph Road, Pontiac.
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.
INTERPOL Washington’s Interns Experience U.S. Law Enforcement TrainingRead the Press Release
As part of INTERPOL Washington’s - U.S. National Central Bureau (USNCB) - internship program, the interns participate in field trips that help them gain valuable experience with law enforcement agencies. USNCB interns are generally U.S. citizens who want to gain insight into the growing nexus of transnational crime as well as law enforcement in the United States and around the world. Recently, interns from all USNCB divisions participated in two exciting field trips.
During the week of September 27, USNCB interns helped the U.S. Marshal Service with active shooter training drills. The Marshals play important roles in stopping criminal activity, and during this field trip the interns experienced some of the dangerous work the Marshals are trained to do.
In an abandoned office building, the interns played multiple roles to help train the Marshals, including victims, active shooters, and fellow police officers. The first drill consisted of interns running through the hallways past the Marshals, yelling about an active shooter. This was designed to teach the Marshals how to deal with frantic witnesses and large crowds when approaching an active shooter situation.
The second drill involved Marshals finding an active shooter solely based on locating the sound of gunshots. This drill also measured friendly fire potential, as the Marshals had to identify an intern dressed as a fellow police officer as an ally and then work with that person to catch the shooter.
The last drill was also the most extreme. Teams of two Marshals were required to infiltrate a dark hallway that was filled with smoke, yelling interns, and distracting noises like sirens and screaming. They then had to locate two active shooters and take them out. While these types of drills can be intense, they prepare the Marshals to assess numerous active shooter scenarios and react to whatever they might find. This field trip taught the interns a lot about the important responsibilities the U.S. Marshals have in their daily jobs. According to INTERPOL Operations and Command Center intern Rachelle Tugade, “The U.S. Marshals field trip was an unforgettable experience. I enjoyed having the opportunity to interact with the Marshals and really appreciated the valuable career advice they had to share with us."
The following week, the INTERPOL Washington interns took a trip to the Federal Bureau of Investigation (FBI) marine base in Quantico, Virginia to watch explosives drills. First, the FBI explosion instructors explained the importance of identifying different types of explosives. The instructors then set off multiple controlled explosions and explained in detail the uses and purposes of each one. The interns were then able to walk around the explosion sites and see the differences in damages between them, which taught them valuable lessons on how to analyze and identify explosion sites that resemble those dealt with by the FBI.
“It’s one thing seeing stories about explosions in TV shows and newspapers, but it’s completely different to experience them in real life,” said Public and Congressional Affairs intern Kimberly Campbell. “The field trip was really eye-opening and it was a privilege to see firsthand some of the incredible work done by FBI bomb technicians.”
The INTERPOL Washington six-month internship program offers an excellent opportunity for those interested in law enforcement to gain experience and connections, as evidenced by these two field trips. The application deadline for the July - December 2017 internship is February 15, 2017.
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.
Four Texas Companies Agree to Pay $3.5 Million for Criminal Violations of the Clean Air Act at Two Oil and Chemical Processing FacilitiesRead the Press Release
The Department of Justice, U.S. Attorney’s Office for the Eastern District of Texas and the U.S. Environmental Protection Agency (EPA) announced today that four Texas companies pleaded guilty and agreed to pay a total of $3.5 million dollars for criminal violations of the Clean Air Act at two oil and chemical processing facilities in Texas.
The information filed in federal court in the Eastern District of Texas charges KTX Limited and KTX Properties Inc., with negligently releasing hazardous air pollutants after a tank explosion at their chemical and petroleum processing facility located in Port Arthur, Texas, on March 31, 2011. The explosion killed one worker at the plant and severely injured two others.
According to the factual basis of the plea agreement, KTX Limited and KTX Properties Inc, authorized two contract workers to perform welding or “hot work” on piping connected to a tank at their Port Arthur facility. Prior to beginning the welding, the defendants falsified the “hot work” permit issued to the workers and failed to properly drain, isolate and decontaminate the tank and connecting equipment as required by Occupational Safety and Health Act (OSHA) regulations. As a result, the welding work ignited vapors causing the tank to explode and release hazardous air pollutants to the environment. Because the defendants had failed to properly inspect and maintain the tank pursuant to generally accepted industry standards, the exploding tank collapsed spilling burning product which severely injured two workers. A third worker was killed when the rails and ladder from the collapsing tank fell on his head.
The information also charges Crosby LP and Ramsey Properties LP with failing to monitor leaks of ground-level ozone (smog) producing air pollutants at their chemical processing facility in Crosby, Texas, from 2008 until 2012. Pursuant to the factual basis, the defendants also admitted that they falsified records and reports for these Title V permit requirements to EPA and the Texas Commission of Environmental Quality certifying the facility was complying with the permit requirements.
“The dishonest and outright failure to adhere to workplace standards and practices can lead to death and injury to American workers who deserve better, as this case tragically shows,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The Justice Department is committed to enforcing environmental and workplace safety laws that protect workers from this kind of egregious behavior and to help ensure it doesn’t happen again.”
“Safety inspections involving toxic or hazardous materials are mandatory and vital to the safety of the worker and the surrounding communities,” said Acting U.S. Attorney Brit Featherston for the Eastern District of Texas. Non-performance is unacceptable and will not be tolerated, and offenders will be prosecuted.”
The plea agreement requires the companies to pay a total of $3.3 million in criminal fines. In addition, the companies will make a $200,000 community service payment to the Southern Environmental Enforcement Network (SEEN). The payment will be used by SEEN for hazardous air release prevention and emergency response training to state and local environmental and law enforcement agencies.
“When handled or stored improperly, chemicals can result in severe injuries or even death, so protecting communities from the harmful effects of hazardous chemicals is a priority for EPA,” said Special Agent in Charge Christopher R. Brooks of EPA’s criminal enforcement program for Texas. “This case emphasizes the importance of having – and following – a plan to manage risks associated with storing hazardous chemicals, which help companies avoid accidents and enable local emergency responders to be better prepared.”
“Employee safety is of paramount importance as there is no excuse for workers not returning to their families at the end of the day,” said Regional Administrator Kelly Knighton for OSHA Region 6. “Resulting from an initial OSHA fatality investigation, I commend the Federal and State partners for holding accountable, to the fullest extent of the law, those employers that take shortcuts and endanger the safety and health of their workers.”
Assistant U.S. Attorney Joseph R. Batte of the Eastern District of Texas and Trial Attorneys Richard Powers and David Kehoe of the Department of Justice, Environmental Crimes Section, prosecuted the case. The case was investigated by EPA’s Criminal Investigation Division and assisted by the Texas Commission on Environmental Quality, the Texas Parks and Wildlife Department and OSHA.
Berrien County, Georgia, Sheriff Sentenced for Using Excessive Force Against Handcuffed, Non-Resistant ArresteesRead the Press Release
Former Berrien County, Georgia, Sheriff, Anthony Heath, 45, was sentenced to 30 months in prison and three years of supervised relief, for using excessive force against two non-resistant arrestees. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia made the announcement.
On June 29, 2016, Heath pleaded guilty to two counts of violating an individual’s civil rights. He was sentenced today by Senior U.S. District Court Judge Hugh Lawson of the Middle District of Georgia.
According to Heath’s guilty plea, on Jan. 12, 2012, Sheriff Heath and several deputies from the Berrien County Sheriff’s Office (BCSO) engaged in an extended foot chase of an individual identified only as M.V., who they were attempting to arrest. A BCSO deputy eventually saw M.V. in the woods and arrested him without incident. When a deputy reported to Heath that M.V. was in custody, the sheriff ordered deputies to hold M.V. in the woods until he could get there. When Heath arrived, M.V. was lying face-down on the ground, with his hands cuffed behind his back, and was not resisting arrest. Nevertheless, Heath kicked M.V. in the ribs, punched him in the head with a closed fist multiple times and forcefully kneed him in the ribs multiple times, causing M.V. to suffer pain and have difficulty breathing. Heath bruised his hand punching M.V. in the head.
During a separate incident, on Oct. 14, 2014, Heath repeatedly punched and kicked another arrestee identified only as J.H., even though J.H. surrendered, lay down on the ground and did not attempt to flee or threaten anyone at any point after his arrest. Heath punched J.H. with sufficient force to cause his own hand to become swollen and bruised. Heath’s punches caused J.H. to bleed from his mouth and to feel pain. As a result of his conviction, Heath was removed from his position as sheriff.
“When Heath beat compliant, handcuffed arrestees, he abused the public’s trust and did a disservice to his fellow colleagues in law enforcement, the vast majority of whom do their jobs with honor and integrity,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will continue to ensure that law enforcement officers protect the rights of all individuals in their custody.”
“The Sheriff is the chief law enforcement officer in his county,” said U.S. Attorney Peterman. “His duty to ‘serve and protect’ extends to the arrestees just as much as it does to the rest of the community. His victims are not just those he assaulted in this case, but include the legions of good, decent law enforcement officers who will have to live under the shadow of mistrust his actions have created, as well as the good citizens who have had their faith in law enforcement challenged by those actions.”
The FBI conducted the investigation. Trial Attorneys Stephen Curran and Mary J. Hahn of the Civil Rights Division’s Criminal Section prosecuted the case.
Federal Court Terminates Agreement after Delaware Reforms Service System for People with Mental IllnessRead the Press Release
Delaware is the First Jurisdiction in the Nation to Successfully Comply with the Terms of an Olmstead v. L.C. Settlement and be Released from Court Oversight
The Justice Department announced today that the U.S. District Court for the District of Delaware terminated the remedial settlement agreement governing the state of Delaware’s service system for people with serious and persistent mental illness. The court agreed with the joint motion of the state and the Justice Department that Delaware had fully complied with the terms of the agreement, based on the assessment of an independent court monitor.
The state significantly expanded and enhanced community-based mental health services for individuals with serious and persistent mental illness under the agreement, as required by the Americans with Disabilities Act (ADA) and the Supreme Court’s Olmstead v. L.C decision. The agreement emphasized the need to transition institutionalized people to the community and prevent people from unnecessarily entering institutions.
“Our agreement prompted Delaware to institute comprehensive reforms and provide services to people with serious and persistent mental illness in integrated community settings,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Throughout this process, we saw the impact of the state’s hard work, leadership and commitment to drive positive change. People with mental illness in Delaware can now live in their own communities, engage with their families and friends and lead meaningful, fulfilling lives.”
Since entry of the agreement, the state has significantly reduced its reliance on institutional care, particularly at the state-run Delaware Psychiatric Center (DPC). It has reduced the number of bed days used by the target population in DPC by 47.2 percent. The number of Medicaid-eligible Delawareans receiving community-based services has increased by 92 percent since the United States began its investigation.
Delaware has developed a strong peer and self-advocacy movement that is incorporated into the entire service system: peers orient individuals upon their admission to DPC, assist them during the course of their hospitalization and provide personal care items upon discharge to the community; operate drop-in centers; conduct quality reviews of mental health services; and are essential members of Assertive Community Treatment, intensive case management, crisis apartment and crisis walk-in center teams.
The state has also established a robust quality assurance and performance improvement system in order to continue the reforms and address issues that may arise for people with mental illness in Delaware. These efforts will be sustained by recently passed legislation that established an independent oversight commission to monitor Delaware’s public mental health system.
These reforms to the state’s mental health system have also helped reduce unnecessary arrests and incarceration of people with SPMI. For instance, Delaware created two statewide mobile crisis teams that typically divert 80 to 90 percent of people they encounter from hospitalization and criminal justice interaction. The state’s crisis walk-in center in Sussex County diverts about 70 percent of people from further hospitalization or criminal justice interaction. This walk-in center reports that it takes law enforcement officers less than 10 minutes on average to drop-off an individual in a mental health crisis, which spares police officers an unnecessary and lengthy emergency room admission or jail booking process. Delaware also operates a peer program in the state’s Mental Health Court that serves people with SPMI or co-occurring disorders. Mental Health Court Peers support individuals throughout the process and help defendants access community resources that are necessary to increased stability in the community, including housing and transportation.
The department initiated its investigation pursuant to the Civil Rights of Institutionalized Persons Act (CRIPA), putting a primary focus on obtaining reforms to address violations of the ADA, as interpreted in Olmstead., requiring that individuals with disabilities receive services and supports in the most integrated setting appropriate to their needs. On Nov. 9, 2010, the United States issued a findings letter to Delaware that detailed systemic conditions and practices that violated the constitutional and statutory rights of individuals with serious and persistent mental illness in the state’s system. The findings letter, settlement agreement, monitor’s reports and papers related to the instant motion are available here.
The department has additional Olmstead settlement agreements in Georgia, Virginia, New Hampshire, New York, North Carolina, Oregon, Rhode Island and the city of Providence.
Delaware Agreement Fact SheetStatement by Attorney General Loretta E. Lynch on the Passing of Brooklyn District Attorney Kenneth ThompsonRead the Press Release
Attorney General Loretta E. Lynch today released the following statement on the passing of Brooklyn District Attorney Kenneth Thompson:
“With the passing of Kenneth Thompson, the United States has lost a tireless defender of equal rights and a steadfast champion of equal justice. Through our work together as federal prosecutors in the Eastern District of New York, I came to know Ken as a devoted public servant. That determination was at the center of all his cases, including the prosecution of police officers for the assault upon Abner Louima, a case I had the privilege of working on alongside him. Ken leaves behind a proud legacy of integrity, selflessness and excellence. Our nation is a stronger and safer place because of his dedicated service. Our thoughts and prayers are with him and his family. He will be truly missed.”
Joint Statement from Department of Justice, Department of the Army and Department of the Interior Regarding D.C. Circuit Court of Appeals Decision in Standing Rock Sioux Tribe v. U.S. Army Corps of EngineersRead the Press Release
The Department of Justice, the Department of the Army and the Department of the Interior today issued the following statement regarding the D.C. Circuit Court of Appeals’ decision in Standing Rock Sioux Tribe v. U.S. Army Corps of Engineers:
“We appreciate the D.C. Circuit’s opinion.
“We continue to respect the right to peaceful protest and expect people to obey the law.
“The Army continues to review issues raised by the Standing Rock Sioux Tribe and other Tribal nations and their members and hopes to conclude its ongoing review soon. In the interim, the Army will not authorize constructing the Dakota Access Pipeline on Corps land bordering or under Lake Oahe. We repeat our request that the pipeline company voluntarily pause all construction activity within 20 miles east or west of Lake Oahe.
“We also look forward to a serious discussion during a series of consultations, starting with a listening session in Phoenix on Tuesday, on whether there should be nationwide reform on the Tribal consultation process for these types of infrastructure projects.”
Statement by Attorney General Loretta E. Lynch on Fatal Shooting of Police Officers in Palm Springs, CaliforniaRead the Press Release
Attorney General Loretta E. Lynch today released the following statement regarding yesterday’s shooting in Palm Springs, California:
“Our nation’s heart is broken yet again by the appalling act of violence that claimed two brave law enforcement officers on Saturday. Officers Jose Gilbert Vega and Lesley Zerebny were at opposite ends of their careers, but they shared a steadfast devotion to the people they had sworn to serve. In a moment of unimaginable crisis, they stayed true to their oaths, laying down their lives to keep their community safe. My thoughts and prayers – and the thoughts and prayers of the entire U.S. Department of Justice –go out to the family, loved ones and colleagues of these two fallen heroes. Let their sacrifice remind each of us of the dangers that brave men and women in law enforcement confront each and every day on our behalf. And let their example inspire each of us to ask what we can do to create a more peaceful, a more united, and a more just society – one worthy of the memory of Officers Vega and Zerebny.”
Michigan Business Owner Pleads Guilty to Concealing Swiss Bank AccountRead the Press Release
Used Hong Kong Shell Company to Hide More Than $2.6 Million
A Michigan man pleaded guilty today to charges of filing a false tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan.
“Today’s plea is yet another example of the department’s commitment to identifying, investigating and prosecuting those individuals who seek to conceal funds in foreign jurisdictions and evade their tax obligations,” said Principal Deputy Assistant Attorney General Ciraolo. “The days when a shell company created in Hong Kong or other jurisdictions could be used successfully to hide funds in foreign financial accounts are over, and those who continue to engage in this conduct will be held accountable.”
“For Americans who follow the rules and pay their taxes, it is important to see that those who go to great lengths to avoid paying taxes are held accountable,” said U.S. Attorney McQuade.
“There are no safe havens for hiding money in secret bank accounts around the globe,” said Chief Richard Weber of Internal Revenue Service (IRS) Criminal Investigation (CI). “Wealthy individuals hiding assets abroad should know that IRS criminal investigators will find them. You can no longer hide behind a veil of secrecy, sham companies or offshore bank accounts.”
Bernhard Rumbold, a resident of Clarkston, Michigan, and owner of several mining-related businesses in Michigan and Ontario, Canada, pleaded guilty to filing a false amended 2008 individual income tax return. According to the information and the plea agreement, in approximately November 2004, Rumbold transferred more than approximately $2.6 million from his parents’ trust account, which he managed, into a bank account at Credit Suisse Bank AG in Switzerland. Rumbold arranged for the Credit Suisse bank account to be in the name of Wisdom City Limited, a Hong Kong company whose sole purpose was to be the named account holder on foreign bank accounts. Rumbold, who was the beneficial owner of the account, transferred control of the account to a relative in December 2008.
On his 2006 through 2008 individual income tax returns, Rumbold falsely stated that he had no interest in a foreign financial account, and failed to report the interest, dividends and capital gains generated by the Swiss bank account as income. In October 2010, Rumbold signed and filed an amended 2008 individual income tax return in which he again failed to report the interest, dividends and capital gains generated by the Swiss bank account as income.
U.S. District Court Judge Sean Cox for the Eastern District of Michigan scheduled Rumbold’s sentencing for Feb. 8, 2017. Rumbold faces a statutory maximum sentence of three years in prison as well as a period of supervised release and monetary penalties. The plea agreement requires Rumbold to pay restitution for his unpaid tax liabilities for the years 2006 through 2008.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney McQuade commended the special agents of IRS-CI, who conducted the investigation, and Assistant U.S. Attorney Ross MacKenzie and Trial Attorney Kenneth Vert of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Announces ‘Safer Families, Safer Communities’ Website to Enforce Domestic Violence Firearm ProhibitionRead the Press Release
Today, the Justice Department’s Office on Violence Against Women (OVW) announced the launch of the National Domestic Violence and Firearms Resource Center’s Safer Families, Safer Communities website. The website is a project of the newly-established resource center, designed to support the implementation and enforcement of domestic violence firearm prohibitions to reduce firearm-involved domestic violence and homicide.
In order to address the challenges that communities face in responding to firearm-involved domestic violence, Safer Families, Safer Communities provides a comprehensive approach for attorneys, prosecutors, court personnel, judges, domestic violence service providers, law enforcement and communities at large. The website highlights the importance of an approach focused on addressing five key areas: criminal, civil, federal, purchase prevention and resources. All five areas are implicated in successfully enforcing firearms prohibitions and disarming domestic violence offenders who illegally possess firearms.
The federal Gun Control Act prohibits people who are subject to certain orders of protection and those who have been convicted of misdemeanor crimes against select individuals, among other classes of individuals, from purchasing, possessing and/or receiving firearms and ammunition. There are also tribal and state laws that have been enacted to keep guns out of the hands of dangerous domestic violence offenders, but due to the complexity of the laws and lack of guidance, these laws can be under-utilized and under-enforced. Through the assistance available on this website, OVW hopes to help agencies and organizations work together to prioritize victim safety so that communities are able to rise to meet these challenges.
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OVW provides leadership in developing the nation’s capacity to reduce violence against women through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing 21 federal grant programs, OVW often undertakes initiatives in response to special needs identified by communities facing acute challenges.
INTERPOL Washington Celebrates Coffee with a Cop Day!Read the Press Release
Every day, INTERPOL Washington—U.S. National Central Bureau (USNCB) serves as the national point of contact for coordinating international investigative efforts among INTERPOL member countries, and more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States. We’d like to extend our sincere appreciation to these dedicated public servants—especially to our state and local liaisons in the Washington, D.C., Maryland, and Virginia in the DMV—by Celebrating Coffee with a Cop day.
Coffee with a Cop was started by the Hawthorne, California, Police Department (HPD) in 2011 as a response to tensions between the police and the community. In order to facilitate discussion and forge alliances, the HPD invited residents to join them for coffee. Thus, the first Coffee with a Cop day was born. The program continues to spread with the participation of more than 2,000 law enforcement agencies and the communities they serve. The Department of Justice (Office of Community Oriented Policing Services) has provided funding for the Coffee with a Cop program, helping to spur the growth of the program throughout the United States and abroad, including Canada, Australia, Europe and Africa. Additionally, the President’s Task Force on 21st Century Policy highlighted this program as a way to build community trust and confidence.
Coffee with a Cop is also a partnership initiative. Partnership is a core value of INTERPOL Washington and we continue to grow our global police network by maintaining partnerships with federal and local law enforcement agencies and international organizations. INTERPOL Washington utilizes a blended workforce of permanent Department of Justice employees and detailed personnel. These detailed employees are able to apply investigative techniques from their home agencies to INTERPOL Washington cases. Upon return to their home agencies, the detailed employees are able to leverage INTERPOL’s tools, which strengthens our partnerships initiative.
Currently, we have approximately 70 law enforcement professionals detailed to USNCB. They represent organizations as diverse as the Federal Bureau of Investigation, to our state and local police representatives. Assistant Commander Micah Andersen (Sheriff’s Office in Story County, Iowa) and Sergeant William Heggs (Maryland Police Department, Prince Georges County) are standout examples of the detailees’ teamwork between the USNCB and U.S. law enforcement. They both support our state and local outreach mission, promoting programs that help police departments to accomplish their jobs.
One example of the partnership that we celebrate on Coffee with a Cop day, and one that both Micah and William promote, is called Federation. Under federation, U.S. law enforcement agencies can query both domestic and INTERPOL indices in a single search. This enables officers to find out in real-time whether the subject of an investigation poses a known transnational and or terrorist criminal threat. These combined searches can be conducted from both fixed and mobile platforms, including vehicle-mounted and hand-held devices. Currently, 12 states and the District of Columbia participate in federation.
Each state, and an increasing number of major cities across the United States, also host INTERPOL liaison offices to coordinate international criminal investigative requests for assistance from INTERPOL Washington. At INTERPOL Washington, we are committed to supporting U.S. law enforcement and we are constantly improving our processes and programs. So, today we tip our (coffee) cups to all of our law enforcement partners and wish you a great day!
Domestic Focus . . . International Reach
INTERPOL Washington Sergeant William Heggs (Prince George's County, Maryland) (left) and Assistant Commander Micah Andersen (Story County, Iowa) support critical partnerships between INTERPOL Washington and law enforcement agencies across the nation. INTERPOL Washington As part of Coffee with a Cop day, police officers from the Metropolitan Police Department in Washington, D.C., spent a few minutes with our staff discussing various resources available to law enforcement through the U.S. National Central Bureau.Requests for international criminal assistance by a local, state, or tribal law enforcement office may be sent through the appropriate liaison office or directly to INTERPOL Washington (24/7). These INTERPOL Washington services are available to law enforcement only. Private citizens and non-law enforcement entities should always contact their local law enforcement agencies or other appropriate state, local or federal authorities for assistance.
Former District of Columbia Attorney Indicted on $2 Million Investment Fraud SchemeRead the Press Release
A federal grand jury sitting in the District of Columbia returned an indictment yesterday against a former attorney, charging her with conspiracy, securities fraud, obstruction of justice and failure to timely file tax returns and pay taxes, all federal offenses, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division. She also was charged with first-degree fraud, a District of Columbia offense.
The indictment alleges that Brynee Baylor, a former partner in the District of Columbia firm of Baylor & Jackson, conspired with a Pennsylvania man and his company known as Milan Group to recruit investors to a purported trading program that promised extremely large profits in a short period of time with little or no risk. The purported trading program was sometimes called a private placement and involved the use of trading platforms and monetizing and leasing foreign bank instruments.
According to the indictment, in 2010 and 2011, Baylor caused more than $2 million of investor funds to pass through the Baylor & Jackson trust account. More than half of the investor funds went for the benefit of Baylor, the Pennsylvania man, Milan Group and Baylor & Jackson. Baylor falsely assured investors that the purported trading program was legitimate, that it had little, if any, risk and that she had observed investors successfully complete transactions with Milan Group. In reality, Milan Group failed to complete any such transactions and failed to return any of the money invested.
In 2011, the Securities and Exchange Commission (SEC) sued Baylor and others for fraud in connection with the purported trading program. The indictment alleges that Baylor endeavored to obstruct justice in the SEC case by making false statements in depositions and in an affidavit.
If convicted, Baylor faces a statutory maximum sentence of five years in prison on the conspiracy count, 20 years in prison on the securities fraud count, 10 years in prison on each of the six counts of first degree fraud, 10 years in prison for the obstruction of justice count, and one year in prison on each of two counts of failing to timely file tax returns and pay taxes. Baylor will also face a term of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo thanked the SEC for its invaluable assistance and commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorneys Kenneth Vert and Jeffrey McLellan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Seven Men Plead Guilty for Illegally Harvesting and Selling American EelsRead the Press Release
Between the dates of October 4 and October 6, seven individuals pleaded guilty in Federal District Court in Portland, Maine, to trafficking more than $1.9 million worth of juvenile American eels, also known as “elvers,” in violation of the Lacey Act.
Yarann Im, Mark Green, John Pinkham, Thomas Reno, Michael Bryant and George Anestis each pleaded guilty to selling or transporting elvers in interstate commerce, that they had harvested illegally, or knew had been harvested illegally, in various East Coast states, including Virginia, New Jersey, Massachusetts, and Rhode Island, among others. Thomas Choi pleaded guilty to exporting elvers that he knew had been harvested illegally in New Jersey, Massachusetts, and elsewhere.
The guilty pleas were announced today by Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division and Director Dan Ashe of the United States Fish and Wildlife Service (USFWS). The pleas were the result of “Operation Broken Glass,” a multi-jurisdiction USFWS investigation into the illegal trafficking of American eels.
“Without the robust enforcement of our nation’s wildlife laws, trafficking in species like the protected American eel will undermine vital marine resources to the point of no return,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The American eel is a unique and economically important species in river systems along the U.S. east coast. These convictions should send a strong message that we will investigate and prosecute poaching as a serious crime, standing side by side with our state law enforcement partners.”
“Skyrocketing prices for juvenile American eels in Asia have led to a surge in poaching and trafficking in this unique species, threatening to wipe it out in the rivers of the Northeast,” said Director Ashe. “The prosecution of these poachers demonstrates our resolve to work with our state and federal law enforcement partners to halt illegal trade in American eels and sustain the species for future generations. The success and scope of Operation Broken Glass would not have been possible without this unparalleled collaboration, which will serve as a model for future investigations.”
“Elver landings are one of Maine’s largest revenue producing marine resources,” said Maine Marine Patrol Colonel Jon Cornish. “Strong enforcement of both state and federal statutes are a key to the success of this fishery. Maine Marine Patrol is proud to have been a participant within Operation Broken Glass. These cases represent the results of what can be accomplished when agencies partner effectively.”
“This investigation is an example of excellent collaboration between wildlife law enforcement agencies at the federal, state, and local level,” said Assistant Administrator Eileen Sobeck of NOAA Fisheries. “NOAA’s Office of Law Enforcement will continue to support investigations to ensure that those fishermen who obey the rules reap the benefits of fair competition and those who do not are caught and justice served.”
“The waters of New Jersey provide ideal conditions for migrating juvenile American eels,” said Director Dave Chanda of the New Jersey Department of Environmental Protection’s Division of Fish &Wildlife. “Despite laws banning American eel harvest, New Jersey continues to experience pressure from those looking to illegally target this highly desired resource to meet overseas demand. In their pursuit of financial gain, these individuals demonstrated deliberate indifference to the health and viability of our state's natural resource.”
Eels are highly valued in east Asia for human consumption. Historically, Japanese and European eels were harvested to meet this demand; however, overfishing has led to a decline in the population of these eels. As a result, harvesters have turned to the American eel to fill the resulting void.
American eels spawn in the Sargasso Sea, an area of the North Atlantic Ocean bounded on all sides by ocean currents. They then travel as larvae from the Sea to the coastal waters of the eastern United States, where they enter a juvenile or elver stage, swim upriver and grow to adulthood in fresh water. Elvers are exported for aquaculture in east Asia, where they are raised to adult size and sold for food. Harvesters and exporters of American eels in the United States can sell elvers to east Asian buyers for more than $2000 per pound.
Because of the threat of overfishing, elver harvesting is prohibited in the United States in all but three states: Maine, South Carolina and Florida. Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities. Although Florida does not have specific elver-related regulations, the limited population of elvers in Florida waters makes commercial elver fishing impossible.
The seven defendants all illegally harvested, sold, transported, or exported elvers, knowing they had been harvested in violation of state law. Further, as a means of concealing the illegal sale and export of elvers, the defendants used Maine or Florida eel harvest licenses, whether theirs or someone else’s, to claim in required paperwork that the elvers were obtained legally from Maine or Florida waters. Elver export declaration packages submitted to the USFWS included this false documentation in order to disguise the illegal origins of the elvers and to facilitate their export from the United States to buyers in east Asia.
The offenses in the case are felonies under the Lacey Act, each carrying a maximum penalty of five years’ incarceration, a fine of up to $250,000 or up to twice the gross pecuniary gain or loss, or both.
Operation Broken Glass was conducted by the USFWS and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, MA Division of Natural Resources, North Myrtle Beach, SC Police Department and the Atlantic States Marine Fisheries Commission.
The government is represented by Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller.
President Obama Grants CommutationsRead the Press Release
Today, the President granted commutation of sentence to the following 102 individuals:
· Benjy Neil Allums – Niceville, FL
Offense: Conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine and 500 grams or more of a mixture and substance containing a detectable amount of cocaine; Northern District of Florida
Sentence: 240 months' imprisonment; 10 years' supervised release; $500 fine (June 28, 2005)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Anthony Anderson – Trenton, TN
Offense: Conspiracy to possess with intent to distribute and to distribute in excess of 50 grams of a mixture or substance containing cocaine base, and in excess of five kilograms of a mixture or substance containing cocaine; Southern District of Indiana
Sentence: 240 months' imprisonment; 10 years' supervised release (July 25, 2006)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Martavious Devonn Anderson – High Point, NC
Offense: Conspiracy to distribute cocaine base (crack); Middle District of North Carolina
Sentence: 262 months' imprisonment; 10 years' supervised release (July 2, 2009)Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment.
· Norwood Wallace Barber, Jr. – Harrisonburg, VA
Offense: Conspiracy to distribute cocaine base; Western District of Virginia
Sentence: Life imprisonment; 10 years' supervised release; $2,500 fine (December 21, 2005)Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment and unpaid balance of fine remitted.
· Shawn Leo Barth – Bismarck, ND
Offense: Conspiracy to possess with intent to distribute methamphetamine; possession of a controlled substance with intent to distribute methamphetamine; distribution of a controlled substance methamphetamine; possession with intent to distribute a controlled substance marijuana; possession of a firearm in furtherance of a drug trafficking crime; felon in possession of a firearm/ammunition; District of North Dakota
Sentence: Life plus 60 months’ imprisonment; 10 years' supervised release (March 22, 2004)Commutation Grant: Prison sentence commuted to a term of 322 months' imprisonment.
· Ronald Baskin – Madison, WI
Offense: Possession with intent to distribute five grams or more of cocaine base (crack cocaine); Western District of Wisconsin
Sentence: 262 months' imprisonment; eight years' supervised release (October 1, 2007)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Desmond Belle – Columbia, SC
Offense: Conspiracy to possess with intent to distribute and to distribute 50 grams or more of cocaine base; District of South Carolina
Sentence: 262 months' imprisonment; 10 years' supervised release (September 24, 2008)Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment.
· Michael Jay Bertram – Dumont, IA
Offense: Possession with intent to distribute a mixture of methamphetamine containing more than 50 grams of pure methamphetamine after having been previously convicted of a felony drug offense; Northern District of Iowa
Sentence: 240 months' imprisonment; 10 years' supervised release (February 23, 2011)Commutation Grant: Prison sentence commuted to a term of 168 months' imprisonment, conditioned upon enrollment in residential drug treatment.
· Randy Boler – Indiana, PA
Offense: Conspiracy to possess with the intent to distribute 50 grams or more of crack cocaine; Middle District of Pennsylvania
Sentence: 327 months' imprisonment; five years' supervised release; $2,500 fine (April 18, 2002); amended to 267 months' imprisonment (December 18, 2002)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Christopher Steven Bowen – Kalamazoo, MI
Offense: Conspiracy to distribute more than 50 grams of cocaine base; Western District of Michigan
Sentence: Life imprisonment; 10 years' supervised release; $6,000 fine (May 26, 2005)Commutation Grant: Prison sentence commuted to a term of 262 months' imprisonment and unpaid balance of fine remitted.
· Gary Brown – Portland, ME
Offense: Possession with intent to distribute 50 grams or more of a mixture and substance containing cocaine base; District of Maine
Sentence: Life imprisonment; 10 years' supervised release (October 11, 2006)Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
· Philander Butler – Memphis, TN
Offense: Possession of 120 grams cocaine base with intent to distribute; Western District of Tennessee
Sentence: Life imprisonment; 10 years' supervised release (September 13, 1999)Commutation Grant: Prison sentence commuted to a term of 262 months’ imprisonment.
· Ivan Calhoun – Cleveland, TN
Offense: Conspiracy to distribute 50 grams or more of methamphetamine mixture; Eastern District of Tennessee
Sentence: 262 months' imprisonment; eight years' supervised release (March 1, 2004); amended to 238 months' imprisonment (August 1, 2005)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Alonzo Devon Campbell – Bay City, MI
Offense: Distribution of five grams or more of cocaine base; Eastern District of Michigan
Sentence: 240 months' imprisonment; eight years' supervised release (February 13, 2008)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Angel Cardona – Wilmington, DE
Offense: Conspiracy to possess with the intent to distribute cocaine; Northern District of Ohio
Sentence: 210 months' imprisonment; four years' supervised release (December 15, 2003)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Lemond Carmickel – St. Louis, MO
Offense: Possession with the intent to distribute cocaine; Eastern District of Missouri
Sentence: 360 months' imprisonment; eight years' supervised release (February 25, 2000)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Arthur Clinkscale – Youngstown, OH
Offense: Possession with intent to distribute cocaine base; Northern District of Ohio
Sentence: 240 months' imprisonment; 10 years' supervised release (November 19, 2002)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Marc Collins – St. Louis, MO
Offense: Conspiracy to possess with intent to distribute and to distribute 50 grams or more of cocaine base (mixture); Southern District of Indiana
Sentence: 210 months' imprisonment; 10 years' supervised release; $1,000 fine (March 4, 2008)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Aaron Keith Covington – Newport News, VA
Offense: Conspiracy to distribute and possess with intent to distribute cocaine and cocaine base; distribution of cocaine base (four counts); possess with intent to distribute cocaine base (six counts); distribution of cocaine (six counts); possess with intent to distribute cocaine (two counts); money laundering; Eastern District of Virginia
Sentence: Life imprisonment; 10 years' supervised release (April 6, 2000)Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
· Eladio Cruz – Newark, NJ
Offense: Conspiracy to distribute more than 50 grams of a mixture and substance containing cocaine base (crack cocaine); District of New Jersey
Sentence: 262 months' imprisonment; five years' supervised release (June 24, 2002)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Virgil Leon Darville – Boynton Beach, FL
Offense: Conspiracy to distribute at least 50 grams of cocaine base and at least 500 grams of powder cocaine; Southern District of Florida
Sentence: 240 months' imprisonment; 10 years' supervised release (February 20, 2009)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Ernest Mordeau Deas – Stone Mountain, GA
Offense: Conspiracy to possess with intent to distribute cocaine; possession with intent to distribute cocaine; District of South Carolina
Sentence: 240 months' imprisonment; eight years' supervised release (January 18, 2006)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Nicholas Jolise Deering – Des Moines, IA
Offense: Possession with intent to distribute at least 50 grams of cocaine base; Southern District of Iowa
Sentence: 223 months' imprisonment; 10 years' supervised release (June 29, 2010)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Delvin R. Dixon – Rockford, IL
Offense: Conspiracy to distribute cocaine; Southern District of Iowa
Sentence: 240 months' imprisonment; 10 years' supervised release (February 10, 2009)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Martin Leroy Dwyer – Columbia, SC
Offense: Conspiracy to possess with intent to distribute and to distribute 50 grams or more of cocaine base (commonly known as "crack" cocaine), five kilograms or more of powder cocaine, and a quantity of marijuana; District of South Carolina
Sentence: 262 months' imprisonment; five years' supervised release (July 17, 2008); amended to 188 months' imprisonment (August 23, 2010)Commutation Grant: Prison sentence commuted to expire on May 4, 2017.
· Nathan Robert Engel – Willmar, MN
Offense: Distribution of methamphetamine; Southern District of Iowa
Sentence: 262 months' imprisonment; 10 years' supervised release (August 21, 2008)Commutation Grant: Prison sentence commuted to a expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Julio Figueroa – Philadelphia, PA
Offense: 1. Conspiracy to distribute and possess with intent to distribute five kilogramsor more of cocaine; unlawfully maintaining a place for the manufacture of controlled substances; distribution of cocaine and aiding and abetting (four counts); Eastern District of Pennsylvania
2. Supervised release violation (conspiracy to distribute 500 grams of cocaine; distribution of 500 grams or more of cocaine and aiding and abetting); Eastern District of Pennsylvania
Sentence: 1. 360 months' imprisonment; 10 years' supervised release (June 19, 2008)
2. 6 months’ imprisonment (consecutive) (November 4, 2008)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
· Anthony P. Flemming – Pittsburgh, PA
Offense: Possession with intent to distribute and/or distribution of five (5) grams or more of a mixture and substance containing a detectable amount of cocaine base; possession with intent to distribute five (5) grams or more of a mixture and substance containing a detectable amount of cocaine base; possession with intent to distribute less than 500 grams of a mixture and substance containing a detectable amount of cocaine (two counts); Western District of Pennsylvania
Sentence: 188 months' imprisonment; five years' supervised release (March 22, 2007)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Leroy Fondren, Jr. – Kansas City, KS
Offense: Possession with intent to distribute 50 grams or more of cocaine base; use of a firearm during a drug trafficking crime; District of Kansas
Sentence: 180 months' imprisonment; five years' supervised release (March 26, 2007)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Todd Fitzgerald Frazier – Largo, FL
Offense: Possession with intent to distribute 50 grams or more of cocaine base, crack cocaine; Middle District of Florida
Sentence: Life imprisonment; 10 years' supervised release (November 10, 2005)Commutation Grant: Prison sentence commuted to a term of 262 months' imprisonment.
· Leticia Garcia – Weslaco, TX
Offense: Conspiracy to distribute heroin; possession with intent to distribute heroin; Central District of Illinois
Sentence: 240 months' imprisonment; 10 years' supervised release (July 18, 2008)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Lee Aaron George – Beaumont, TX
Offense: Conspiracy to possess with intent to distribute 50 grams or more of cocaine base; Eastern District of Texas
Sentence: 240 months' imprisonment; 10 years' supervised release (April 14, 2010)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Alvin Green – Los Angeles, CA
Offense: Conspiracy to distribute and possess with intent to distribute 50 or more grams of cocaine base, aiding and abetting; use of a communications facility to possess with intent to distribute cocaine base, aiding and abetting (two counts); money laundering, aiding and abetting; District of Colorado
Sentence: Life imprisonment; three years' supervised release (April 7, 2004)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Roosevelt Hamlin – Chicago, IL
Offense: Distribution of cocaine base (crack); Central District of Illinois
Sentence: 360 months' imprisonment; 10 years' supervised release (May 5, 2010)Commutation Grant: Prison sentence commuted to a term of 236 months' imprisonment.
· Lancell Maurice Harris – Little Rock, AR
Offense: Possession of cocaine with intent to distribute (two counts); carrying a firearm during a drug-trafficking crime (two counts); Eastern District of Arkansas
Sentence: 421 months' imprisonment; four years' supervised release (December 1, 1993); amended to 397 months' imprisonment (July 1, 2008); amended to 363 months' imprisonment (November 3, 2011); amended to 360 months' imprisonment (November 25, 2014)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Lavelle Henderson – Topeka, KS
Offense: Continuing criminal enterprise; money laundering; District of Kansas
Sentence: Life imprisonment; five years' supervised release (November 22, 2002)Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
· Lincoln Cardell Henderson – Kansas City, MO
Offense: Conspiracy to distribute 50 grams or more of “crack” cocaine; possession with intent to distribute 50 grams or more of “crack” cocaine; Western District of Missouri
Sentence: Life imprisonment; 10 years' supervised release (August 31, 2004)Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
· Marty Herndon – Jenkinsville, SC
Offense: Possession with the intent to distribute five grams or more of cocaine base (crack cocaine); District of South Carolina
Sentence: 262 months' imprisonment; eight years' supervised release (April 13, 2004)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Willi J. Hill – Indianapolis, IN
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base; possession with intent to distribute cocaine base; Southern District of Indiana
Sentence: 500 months' imprisonment; five years' supervised release; $25,000 fine (January 11, 1995)Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
· Dontae Lamont Hunt – Atlanta, GA
Offense: Possession with intent to distribute more than five grams of cocaine base (two counts); carrying a firearm during and in relation to a drug trafficking crime; District of Oregon
Sentence: 240 months' imprisonment; eight years' supervised release (September 23, 2005)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Arthur Jarrod Jackson – Dallas, TX
Offense: Possession with intent to distribute crack and aiding and abetting; carrying or use of a firearm during a drug crime and aiding and abetting; felon in possession of a firearm; Northern District of Texas
Sentence: 420 months' imprisonment; five years' supervised release (May 19, 1994)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Jesse Jackson, Jr. – Fort Worth, TX
Offense: Conspiracy to distribute 50 grams or more of cocaine base and to distribute five kilograms or more of cocaine; distribution of cocaine base and aiding and abetting; Northern District of Texas
Sentence: 320 months' imprisonment; five years' supervised release (December 3, 1996)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Rodrickus Antonio Jamison – Portsmouth, VA
Offense: Distribution of five grams or more of cocaine base; Western District of Virginia
Sentence: 188 months' imprisonment; four years' supervised release (July 31, 2006)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Cesar R. Jara – El Paso, TX
Offense: Possession with intent to distribute 1,000 kilograms or more of marijuana; Western District of Missouri
Sentence: 240 months' imprisonment; 10 years' supervised release (February 10, 2006)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· James Curtis Johnson – Fayetteville, NC
Offense: Distribution of 55.4 grams of cocaine base; Eastern District of North Carolina
Sentence: 262 months' imprisonment; five years' supervised release (March 20, 2002)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Christian Jones – Fountain, CO
Offense: Possession with intent to distribute 500 grams or more of cocaine and five grams or more of cocaine base; District of Colorado
Sentence: 262 months' imprisonment; eight years' supervised release (February 20, 2002)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Mark Louis Katzin, Sr. – Philadelphia, PA
Offense: Conspiracy to distribute methamphetamine; Use of a communication facility in furtherance of a drug trafficking offense; Eastern District of Pennsylvania
Sentence: 240 months' imprisonment; 10 years' supervised release (May 15, 2002)Commutation Grant: Prison sentence commuted to expire on May 1, 2017.
· Roger Law – Boise, ID
Offense: Possession with intent to distribute methamphetamine (two counts); possession of a listed chemical with knowledge of its wrongful intended use; possession with intent to distribute marijuana; District of Idaho
Sentence: Life imprisonment; 10 years' supervised release; $2,000 fine (November 8, 2001)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, and unpaid balance of fine remitted, conditioned upon enrollment in residential drug treatment.
· Jefferson Levine – Hollywood, FL
Offense: Possession with intent to distribute 50 grams or more of cocaine base; Southern District of Florida
Sentence: Life imprisonment; five years' supervised release (July 16, 2001)Commutation Grant: Prison sentence commuted to a term of 327 months' imprisonment.
· Brandon J. Lewis – Houston, TX
Offense: Drug trafficking conspiracy; use of telephone in furtherance of a drug trafficking crime; Central District of Illinois
Sentence: 240 months' imprisonment; 10 years' supervised release (February 17, 2009)Commutation Grant: Prison sentence commuted to a term of 120 months' imprisonment.
· David Fitzgerald Lightner – Charlotte, NC
Offense: Conspiracy to possess with intent to distribute and distribute a quantity of cocaine base; possess with intent to distribute a quantity of cocaine base and aid and abet same; Western District of North Carolina
Sentence: Life imprisonment; $25,000 fine (May 16, 1994)Commutation Grant: Prison sentence commuted to expire on October 6, 2017, and unpaid balance of fine remitted.
· Gerald Lofton – Warren, OH
Offense: Conspiracy to possess and distribute cocaine base; felon in possession of a firearm; Northern District of Ohio
Sentence: 240 months' imprisonment; 10 years' supervised release (June 18, 2008)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Maria Conchita Marino – West Point, NE
Offense: Conspiracy to distribute methamphetamine; Southern District of Iowa
Sentence: 240 months' imprisonment; 10 years' supervised release (February 29, 2008)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Victor Matias, Jr. – Baraboo, WI
Offense: Conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine; knowingly and intentionally distribute cocaine (three counts); knowingly and intentionally possess with intent to distribute cocaine; Western District of Wisconsin
Sentence: 360 months' imprisonment; five years' supervised release (March 29, 2001); amended to 292 months' imprisonment (March 16, 2015)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Jerald McCullough – Altoona, PA
Offense: Possession with intent to distribute 50 grams or more of cocaine base; Western District of Pennsylvania
Sentence: 240 months' imprisonment; 10 years' supervised release (July 2, 2009)Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment.
· Lamont Alvin McElveen – Darlington, SC
Offense: Possession with intent to distribute 50 grams or more of cocaine base, commonly known as crack cocaine; District of South Carolina
Sentence: Life imprisonment; 10 years' supervised release (March 29, 2004)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Jimmy Phillip Medina – Ogden, UT
Offense: Possession with intent to distribute methamphetamine; District of Utah
Sentence: 240 months' imprisonment; 10 years' supervised release (April 27, 2005)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Joseph Mike – Charlotte, NC
Offense: Conspiracy to possess with intent to distribute cocaine; Western District of North Carolina
Sentence: Life imprisonment; 10 years' supervised release (October 1, 2010)Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
· Ricky Gene Minor – Niceville, FL
Offense: Attempt to manufacture methamphetamine; Northern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (August 22, 2001)Commutation Grant: Prison sentence commuted to a term of 262 months' imprisonment.
· Arlana Doris Moore – Grand Falls, TX
Offense: Conspiracy to manufacture 50 grams or more of actual methamphetamine and possession of pseudoephedrine list I chemicals with intent to manufacture methamphetamine; Western District of Texas
Sentence: Life imprisonment; 10 years' supervised release (August 25, 2010)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Rodger Lee Moran – Des Moines, IA
Offense: Conspiracy to distribute at least 50 grams of actual methamphetamine; Southern District of Iowa
Sentence: Life imprisonment; 10 years' supervised release (June 25, 2009)Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
· Krishna Mote – Montross, VA
Offense: Conspiracy to distribute and possess with intent to distribute in excess of 280 grams of cocaine base (crack) and in excess of 500 grams of cocaine; distribution and possession with intent to distribute cocaine base (crack), aid and abet; Middle District of Pennsylvania
Sentence: Life imprisonment; 10 years' supervised release (May 15, 2013)Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
· Robert Lee Nickens – Front Royal, VA
Offense: Conspiracy to distribute more than 50 grams of crack cocaine; Western District of Virginia
Sentence: 262 months' imprisonment; seven years' supervised release; $500 fine (March 31, 2005)Commutation Grant: Prison sentence commuted to expire on November 5, 2016.
· Tesmone Darin Paschal – Maryville, TN
Offense: Possession with intent to distribute 50 grams or more of cocaine base; aided and abetted in the possession of a firearm by a convicted felon; Eastern District of Tennessee
Sentence: 300 months' imprisonment; 10 years' supervised release (April 2, 2007)Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment.
· Randy Patterson – Dalton, GA
Offense: Conspiracy to distribute 500 grams or more of methamphetamine mixture; Eastern District of Tennessee
Sentence: 262 months' imprisonment; 10 years' supervised release (November 3, 2003)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Karl Eugene Peacock – Bossier City, LA
Offense: Conspiracy to violate 21 U.S.C. § 841(a)(1); possession of a firearm in furtherance of drug trafficking; Western District of Louisiana
Sentence: 241 months' imprisonment; five years' supervised release (May 13, 2005); amended to 240 months' imprisonment (November 1, 2014)Commutation Grant: Prison sentence commuted to a term of 217 months' imprisonment.
· Raul Perez – Miami, FL
Offense: Conspiracy to possess with intent to distribute cocaine; Middle District of Florida
Sentence: Life imprisonment; 10 years' supervised release (September 27, 2001)Commutation Grant: Prison sentence commuted to a term of 292 months' imprisonment.
· Jerry Pirtle – Springfield, IL
Offense: Distribution of 50 or more grams of cocaine base (crack); Central District of Illinois
Sentence: 240 months' imprisonment; 10 years' supervised release (May 5, 2008)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Ronald Pirtle – Bronx, NY
Offense: Conspiracy to possess with intent to distribute cocaine base (incorrectly listed on the judgment as cocaine); District of Maryland
Sentence: Life imprisonment; 10 years' supervised release (December 22, 2004)Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
· Cornelius D. Porter – Mount Rainer, MD
Offense: Felon in possession of a firearm and ammunition; possession with intent to distribute cocaine; possession with intent to distribute more than five grams of cocaine base; District of Maryland
Sentence: 360 months' imprisonment; eight years' supervised release (December 9, 2002)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Derrick Drake Price – Midland, TX
Offense: 1. Conspiracy to distribute more than 5 grams of cocaine base; WesternDistrict of Texas
2. Violation of supervised release (possession with intent to distribute cocaine base); Western District of Texas
Sentence: 1. 188 months' imprisonment; five years’ supervised release (October 25,
2004)
2. 60 months' imprisonment (consecutive) (October 25, 2004)
Commutation Grant: Prison sentence commuted to a term of 211 months' imprisonment, conditioned upon enrollment in residential drug treatment.
· John Purcell – Philadelphia, PA
Offense: Conspiracy to distribute and manufacture methamphetamine; manufacturing methamphetamine, aiding and abetting; Eastern District of Pennsylvania
Sentence: 240 months' imprisonment; 10 years' supervised release (May 16, 2007)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Jason Rakel – Shreveport, LA
Offense: Conspiracy to violate 21 U.S.C. § 841(a)(1); Western District of Louisiana
Sentence: 240 months' imprisonment; 10 years' supervised release (February 22, 2006)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Ronald Lee Razz – West Palm Beach, FL
Offense: Maintaining a drug-involved premises; possession with intent to distribute 50 grams or more of cocaine base; possession with intent to distribute five grams or more of cocaine base; Southern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (April 14, 2006)Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
· Andre Lefell Reese – San Angelo, TX
Offense: Conspiracy to possess with intent to distribute and distribution of 50 grams or more of cocaine base and aiding and abetting; distribution of less than five grams of cocaine base within 1,000 feet of public elementary school and aiding and abetting; possession with intent to distribute more than 50 grams of cocaine base within 1,000 feet of public elementary school and aiding and abetting; Northern District of Texas
Sentence: Life imprisonment; 10 years' supervised release (May 1, 1998)Commutation Grant: Prison sentence commuted to a term of 300 months' imprisonment.
· Jose Ramon Rivas – Philadelphia, PA
Offense: Conspiracy to distribute cocaine base ("crack"); Eastern District of Pennsylvania
Sentence: 240 months' imprisonment; 10 years' supervised release (June 22, 2005)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Chris Robinson – Winchester, TN
Offense: Conspiracy to distribute five kilograms or more of cocaine hydrochloride; use of a communication device (two counts); Eastern District of Tennessee
Sentence: Life imprisonment; eight years' supervised release (April 5, 2007)Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
· Kevin Dwayne Rodgers – Big Spring, TX
Offense: Conspiracy to possess with intent to distribute 50 grams or more of methamphetamine; Western District of Texas
Sentence: 240 months' imprisonment; 10 years' supervised release (October 23, 2008)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Eduardo Rodriguez-Velez – Mayaguez, PR
Offense: Conspiracy to possess with intent to distribute 50 grams or more of cocaine base; District of Puerto Rico
Sentence: Life imprisonment; 10 years' supervised release (October 31, 2007)Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
· Dameon Russell – Saginaw, MI
Offense: 1. Supervised release violation (Possession with intent to distributecocaine base); Eastern District of Michigan
2. Conspiracy to possess with intent to distribute five grams or more of cocaine base; possession with intent to distribute five grams or more of cocaine base; distribution of cocaine base (four counts); Eastern District of Michigan
Sentence: 1. 30 months' imprisonment; eight years’ supervised release (October 14,
2010)
2. 292 months' imprisonment (concurrent); (December 15, 2010); amended to 210 months' imprisonment; six years' supervised release (January 24, 2013)
Commutation Grant: Prison sentence commuted to a term of 168 months' imprisonment.
· Jose Elias Salinas – Houston, TX
Offense: Conspiracy to possess with intent to distribute 500 grams or more of a mixture of methamphetamine, 5 kilograms or more of cocaine, and 100 grams or more but less than one kilogram of heroin; Eastern District of Texas
Sentence: 180 months' imprisonment; five years' supervised release (October 13, 2010)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Russell Charles Seidel – Mandan, ND
Offense: Conspiracy to possess with intent to distribute and distribute a controlled substance, aiding and abetting; District of North Dakota
Sentence: Life imprisonment; 120 months' supervised release (June 28, 2011)Commutation Grant: Prison sentence commuted to a term of 180 months' imprisonment.
· Eugene Durst Self – Odessa, TX
Offense: Conspiracy to possess with intent to distribute 50 grams or more of cocaine base; possession with intent to distribute cocaine base; Western District of Texas
Sentence: Life imprisonment; 10 years' supervised release (October 29, 2009)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Frank Lavelle Sharpe – Pinetta, FL
Offense: Distribution of cocaine base (four counts); Northern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (January 14, 1999)Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
· Bart Ellis Shoupe – San Antonio, TX
Offense: Conspiracy to possess with intent to distribute marijuana; Western District of Texas
Sentence: 235 months' imprisonment; 10 years' supervised release (June 20, 2003)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Kenny Siepker – Carroll, IA
Offense: Conspiracy to distribute 500 grams or more of methamphetamine mixture; unlawful drug user in possession of a firearm; possession with intent to distribute methamphetamine while on pretrial release; Northern District of Iowa
Sentence: 372 months' imprisonment; 10 years' supervised release (October 11, 2002)Commutation Grant: Prison sentence commuted to a term of 300 months' imprisonment.
· Christopher Alan Simmons – Moline, IL
Offense: Conspiracy to distribute crack cocaine; possession with intent to distribute crack cocaine; Central District of Illinois
Sentence: Life imprisonment; 10 years' supervised release (August 7, 2009)Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment.
· Kamal Sims – Evansville, IN
Offense: Conspiracy to distribute 50 grams or more of cocaine base (mixture); Southern District of Indiana
Sentence: 240 months' imprisonment; 10 years' supervised release (December 18, 2008)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· James Harold Smith – Waynesboro, VA
Offense: Conspiracy to distribute methamphetamine; possession of a firearm in furtherance of a drug trafficking crime (two counts); Western District of Virginia
Sentence: 411 months' imprisonment; five years' supervised release (November 2, 2006)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Alan Jerome Spears – Cleveland, OH
Offense: Possession with the intent to distribute and distribution of cocaine base (crack); possession with the intent to distribute cocaine base (crack); Northern District of Ohio
Sentence: 240 months' imprisonment; 10 years' supervised release (January 15, 2002)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Lamarcus Walthugh Stilling – Seffner, FL
Offense: Possession with intent to distribute five grams or more of cocaine base; Middle District of Florida
Sentence: 188 months' imprisonment; eight years' supervised release (March 6, 2009)Commutation Grant: Prison sentence commuted to a term of 168 months' imprisonment.
· Charles E. Stokes – Gifford, FL
Offense: Possession with intent to distribute cocaine base; Southern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (June 3, 1996)Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
· James A. Stone – Detroit, MI
Offense: Conspiracy to possess with intent to distribute in excess of 50 grams of cocaine base; possession with intent to distribute in excess of 50 grams of cocaine base; possession with intent to distribute cocaine base, and aiding and abetting; Eastern District of Kentucky
Sentence: Life imprisonment (June 23, 2000)Commutation Grant: Prison sentence commuted to a term of 262 months' imprisonment.
· Ausby Stowers – St. Paul, MN
Offense: Possession with intent to distribute cocaine base; District of Minnesota
Sentence: 262 months' imprisonment; 10 years' supervised release (April 19, 2002)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Shane Alan Taylor – Colorado Springs, CO
Offense: Conspiracy to manufacture methamphetamine; District of Utah
Sentence: 240 months' imprisonment; five years' supervised release; $3,039.03 restitution (April 26, 2005)Commutation Grant: Prison sentence commuted to expire on October 6, 2018 and unpaid balance of restitution obligation remitted, conditioned upon enrollment in residential drug treatment.
· Chip J.W. Teague – Sallisaw, OK
Offense: Possess with intent to distribute methamphetamine; possession of firearm moved in interstate commerce (three counts); possession of firearm during drug trafficking crime (two counts); possess with intent to distribute methamphetamine; manufacture methamphetamine (two counts); maintain place for manufacture of methamphetamine; Eastern District of Oklahoma
Sentence: 495 months' imprisonment; five years' supervised release (May 25, 2000)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Lawrence Kemp Tennille – Detroit, MI
Offense: Conspiracy with intent to possess with intent to distribute in excess of 50 grams of a mixture or substance containing detectable amount of cocaine base, a Schedule II controlled substance; Eastern District of Kentucky
Sentence: Life imprisonment (September 12, 1997)Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
· Wilfredo Vasquez – New Port Richey, FL
Offense: 1. Conspiracy to possess with intent to distribute five kilograms or more ofcocaine; possession with intent to distribute five kilograms or more of cocaine; Middle District of Florida
2. Supervised release violation (conspiracy to import narcotics); Middle District of Florida
Sentence: 1. Life imprisonment (February 19, 2002)
2. 27 months' imprisonment (consecutive) (March 7, 2002)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
· Manuel Viera – Miami, FL
Offense: Conspiracy to possess with intent to distribute five kilograms or more of cocaine hydrochloride; Middle District of Florida
Sentence: 240 months' imprisonment; 10 years' supervised release (August 21, 2009)Commutation Grant: Prison sentence commuted to a term of 120 months' imprisonment.
· Shannon Alexander Washington – Lexington, KY
Offense: Possession with intent to distribute cocaine base; carrying firearm and ammunition during and in relation to drug trafficking crime; Eastern District of Kentucky
Sentence: Life plus 60 months' imprisonment; 10 years' supervised release (September 28, 2007); amended to 240 months' imprisonment (October 6, 2008)Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.
· Henry Lee White – Orlando, FL
Offense: Possession with intent to distribute cocaine base; using and carrying a firearm during and relation to a drug trafficking crime; Middle District of Florida
Sentence: 420 months' imprisonment; five years' supervised release (October 21, 1998); amended to 340 months’ imprisonment (May 18, 1999)Commutation Grant: Prison sentence commuted to expire on February 3, 2017.
· Charles M. Woolsey – West Baden Springs, IN
Offense: Possession of 500 grams or more of methamphetamine (mixture); possession with intent to distribute cocaine; possession of marijuana; possession of a firearm in furtherance of drug trafficking; prohibited person in possession of a firearm; Southern District of Indiana
Sentence: 300 months’ imprisonment; 10 years' supervised release (October 27, 2006); amended to life imprisonment (October 21, 2008)Commutation Grant: Prison sentence commuted to a term of 300 months' imprisonment.
Justice Department Awards $7 Million to Improve Responses to Violence, Including Officer ShootingsRead the Press Release
Attorney General Loretta E. Lynch today announced that the Office for Victims of Crime (OVC) in the Office of Justice Programs (OJP) awarded $7 million to help communities respond to high profile violence, including shootings that involve law enforcement officers. The award, made to the International Association of Chiefs of Police (IACP) in collaboration with the National Association for the Advancement of Colored People (NAACP) and the Yale School of Medicine, will help cities develop strategies to defuse tension and promote healing following events that cause collective community trauma.
“Violence does not occur in a vacuum,” said Attorney General Loretta E. Lynch. “It has a powerful effect on the psyche of an entire community, stirring painful emotions and raising difficult tensions. The Department of Justice is determined to stand with our citizen and law enforcement partners as they grapple with the aftermath of painful incidents. As part of that commitment, these vital grants will help communities acknowledge the effects of violence, address collective trauma, and promote unity and healing where it is needed most.”
The grant, awarded by OVC as part of its Vision 21 Initiative, will provide resources to law enforcement agencies to develop, implement and assess preventive and responsive trauma-informed interventions intended to promote community engagement and address the consequences of violent acts, including shootings of and by law enforcement officers. The IACP and its partners, in consultation with OVC, will select up to six demonstration sites to create and test evidence-based models. They will also provide training and technical assistance to the sites and recruit and train a rapid response team that will be deployed to help law enforcement agencies and communities in the wake of a crisis. The rapid response team comprises consultants and subject matter experts from law enforcement departments, victim assistance organizations and mental health agencies.
This award strengthens the Department of Justice’s commitment to building bridges of trust between communities and the agencies that serve them. Vision 21 is designed to marshal data, research and technology to help criminal justice agencies and victim service organizations meet both the long-standing and emerging challenges facing crime victims in the United States. The initiative is central to OJP’s efforts to improve the effectiveness of the justice system and heighten confidence in the system’s operations.
Detroit Diesel Corporation to Pay Penalty and Reduce Exposure to Harmful Diesel Exhaust to Resolve Clean Air Act ViolationsRead the Press Release
Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Detroit Diesel Corporation that resolves alleged violations of the Clean Air Act for selling heavy-duty diesel engines that were not certified by EPA and did not meet applicable emission standards. Under the settlement, Detroit Diesel will spend $14.5 million on projects to reduce nitrogen oxide and other pollutants, including replacing high-polluting diesel school buses and locomotive engines with models that meet current emissions standards. Detroit Diesel will also pay a $14 million civil penalty.
The government’s complaint, filed today along with the settlement, alleges that Detroit Diesel violated the Clean Air Act by introducing into commerce 7,786 heavy-duty diesel engines for use in trucks and buses in model year 2010 without a valid EPA-issued certificate of conformity demonstrating conformance with Clean Air Act standards to control nitrogen oxide (NOx) emissions. The complaint also alleges that the engines did not conform to emission standards applicable to model year 2010 engines. To mitigate the harm posed by the alleged violations, the school bus and locomotive replacement projects required by the settlement will reduce ambient air levels of nitrogen oxide and other pollutants. EPA will approve where the projects are to be performed, based on various criteria, including whether the area already does not meet Clean Air Act standards and whether the area includes low-income communities. In addition, the school bus program will improve air quality inside school buses by reducing exposure to diesel exhaust. Diesel exhaust poses a lung cancer hazard for humans and can cause non-cancer respiratory effects such as asthma.
“This case demonstrates the critical importance of EPA’s vehicle and engine certification program to achieving the goals of the Clean Air Act,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “By not certifying the engines in accordance with the rules, Detroit Diesel Corp. increased pollution and undercut competitors. We will uphold the integrity of that program by holding accountable those that skirt the rules.”
“Today’s settlement protects clean air for many communities and vulnerable people across the country, including school children,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “EPA will continue to hold engine manufacturers accountable for meeting emissions standards that protect public health and the air we breathe.”
The Clean Air Act requires manufacturers to obtain a certificate of conformity demonstrating compliance with emission standards before introducing an engine into commerce. Certificates of conformity cover only those engines produced within a single model year. A model year for an engine family of engines ends either when the last such engine is produced, or on Dec. 31 of the calendar year, for which the model year is named, whichever date is sooner.
The complaint alleges that Detroit Diesel commenced construction of the engines during model year 2009, but did not complete construction of the engines until model year 2010. Because Detroit Diesel completed all manufacturing and assembling processes for the engines in 2010, the complaint alleges that the engines were produced in 2010 and required a certificate of conformity demonstrating compliance with 2010 emission standards. From approximately Jan. 5, 2010, through approximately June 1, 2010, Detroit Diesel sold the engines for on-highway use in heavy duty vehicles. Because the engines were not certified to the stringent 2010 NOx emission standards, Detroit Diesel’s introduction of these engines resulted in excess emissions. The engines were manufactured in Detroit, Michigan, but were introduced into commerce across the country.
Under the consent decree, Detroit Diesel will be required to implement projects to replace high-polluting school buses with school buses that meet current federal emissions standards and replace or repower high-polluting switch locomotives. Detroit Diesel is also required to post data and information about the clean diesel projects on a public website.
Detroit Diesel is a Michigan corporation that began as a diesel engine manufacturing division of the General Motors Corporation in 1938. It is currently a wholly-owned subsidiary of Daimler Trucks North America. Detroit Diesel manufactures heavy-duty diesel engines, axles and transmissions for the on-highway and vocational truck markets.
The consent decree was lodged in the District Court for the District of Columbia. Notice of the lodging will appear in the Federal Register allowing for a public comment period of not less than 30 days before the consent decree can be entered by the court as final judgement. The $14 million civil penalty is due 30 days after the effective date of the consent decree. To view the consent decree: www.justice.gov/enrd/Consent_Decrees.html.
More information about today’s settlement: https://www.epa.gov/enforcement/detroit-diesel-corp-clean-air-act.
More information about EPA’s Clean Air Act vehicle and engine enforcement case resolutions: https://www.epa.gov/enforcement/clean-air-act-vehicle-and-engine-enforcement-case-resolutions.
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 102 individuals:
“The department has made great progress reviewing applications under the President's clemency initiative to correct unduly harsh and outdated drug sentences. President Obama has commuted 774 sentences, which is more than were commuted in the prior 66 years preceding his administration combined and we expect to continue to make history with additional commutations in the months ahead."
Department of Justice Awards $12 Million to Advance Community Policing Efforts and Collaborative ReformRead the Press Release
Attorney General Loretta E. Lynch today announced $12 million in funding through the Department of Justice, Office of Community Oriented Policing Services (COPS Office) as part of President Obama’s commitment to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report. The grant awards will build on the Justice Department’s community policing efforts and include funding for the development of innovative community policing strategies, officer training and technical assistance, applied research, and the implementation of best practices for community engagement.
Grant awards were made in categories that support the implementation of recommendations from the 21st Century Policing Task Force report, including the Microgrant Initiative for Law Enforcement, Critical Response Technical Assistance, Community Policing Emerging Issues Forums, Community Policing Training Projects, Law Enforcement Led 21st Century Policing Demonstration Projects, 21st Century Policing and Implementation Projects. A full list of grant awardees is available here: http://www.cops.usdoj.gov/Default.asp?Item=2895.
In addition, the COPS Office allocated $4.5 million to a contract award for Hillard Heintze to support the Collaborative Reform Initiative for Technical Assistance program. Collaborative reform is a long-term strategy that identifies issues within an agency that may affect public trust and then offers recommendations based on a comprehensive agency assessment for how to resolve those issues and enhance the relationship between the police and the community.
The COPS Office, headed by Director Ronald Davis, is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 129,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about COPS, please visit www.cops.usdoj.gov.
Brooklyn Resident and Two Russian Nationals Arrested in Connection with Scheme to Illegally Export Controlled Technology to RussiaRead the Press Release
Defendants Used Brooklyn-Based Front Companies to Procure Sophisticated Military and Satellite Technology on Behalf of Russian End-Users
Earlier today, Alexey Barysheff of Brooklyn, New York, a naturalized citizen of the United States, was arrested on federal charges of illegally exporting controlled technology from the United States to end-users in Russia. Simultaneously, two Russian nationals, Dmitrii Aleksandrovich Karpenko and Alexey Krutilin, were arrested in Denver, Colorado, on charges of conspiring with Barysheff and others in the scheme. Federal agents also executed search warrants at two Brooklyn locations that were allegedly used as front companies in Barysheff’s illegal scheme.
Barysheff is scheduled to make his initial appearance today at 2:00 p.m EDT at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York, before Chief United States Magistrate Judge Roanne L. Mann. Karpenko and Krutilin are scheduled to make their initial appearances today at 2:00 p.m. MDT at the United States Courthouse in Denver, Colorado, where the government will seek their removal in custody to the Eastern District of New York.
The arrests and charges were announced by Assistant Attorney General for National Security John P. Carlin; U.S. Attorney Robert L. Capers of the Eastern District of New York; Special Agent in Charge Angel M. Melendez, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York Field Office; FBI Assistant Director in Charge William F. Sweeney, Jr., New York Field Office; Special Agent in Charge Jonathan Carson, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office; and Craig Rupert, Special Agent in Charge of the Department of Defense, Defense Criminal Investigative Service, North East Field Office.
The complaints allege that Barysheff, Karpenko, Krutilin, and others were involved in a conspiracy to obtain cutting-edge microelectronics from manufacturers and suppliers located within the United States and to export those high-tech products to Russia, while evading the government licensing system set up to control such exports. The Department of Commerce, pursuant to authority granted by the President of the United States, has placed restrictions on the export and re-export of items that it has determined could make a significant contribution to the military potential and weapons proliferation of other nations and that could be detrimental to the foreign policy and national security of the United States. The microelectronics shipped to Russia included, among other products, digital-to-analog converters and integrated circuits, which are frequently used in a wide range of military systems, including radar and surveillance systems, missile guidance systems and satellites. These electronic devices required a license from the Department of Commerce to be exported to Russia and have been restricted for anti-terrorism and national security reasons.
As further detailed in the complaints, in 2015 Barysheff registered the Brooklyn, New York-based companies BKLN Spectra, Inc. (Spectra) and UIP Techno Corp. (UIP Techno). Since that time, the defendants and others have used those entities as U.S.-based front companies to purchase, attempt to purchase, and illegally export controlled technology. To induce U.S.-based manufacturers and suppliers to sell them high-tech, export-controlled microelectronics and to evade applicable controls, the defendants and their co-conspirators purported to be employees and representatives of Spectra and UIP Techno and provided false end-user information in connection with the purchase of the items, concealed the fact that they were exporters and falsely classified the goods they exported on records submitted to the Department of Commerce. To conceal the true destination of the controlled microelectronics from the U.S. suppliers, the defendants and their co-conspirators shipped the items first to Finland and subsequently to Russia.
“According to the complaints, Barysheff, Karpenko, and Krutilin conspired among themselves and with others to send sensitive U.S. technology surreptitiously to Russia in violation of U.S. export law,” said Assistant Attorney General Carlin. “These laws are in place to protect the national security, and we will spare no effort in pursuing and holding accountable those who seek to harm the national security by illegally procuring strategic commodities for foreign entities.”
“U.S. export laws exist to prevent potentially dangerous technology from falling into the wrong hands,” said U.S. Attorney Capers. “Those who seek to evade the scrutiny of U.S. regulatory and law enforcement agencies by operating in the shadows present a danger to our national security and our allies abroad. We will continue to use all of our available national security options to hold such individuals and corporations accountable.”
“Had law enforcement not interceded, the alleged perpetrators would have exported materials that are known to be used in a wide range of military devices,” said Melendez, Special Agent in Charge for HSI New York. “HSI will continue to partner with other law enforcement agencies while focusing its efforts on national security and stopping the illegal flow of sensitive technology.”
“Export controls were established to prevent certain individuals, organizations, or nations from obtaining protected technology and information. When the laws are evaded, we become vulnerable to the many threats posed by our adversaries. The FBI will continue to protect our national security assets as we work with our partners to prevent the exportation of restricted materials,” said Sweeney, FBI Assistant Director in Charge, New York Field Office.
“Today’s arrest is a collaborative effort among law enforcement agencies. I commend our colleagues for their efforts,” said Special Agent in Charge Carson, U.S. Department of Commerce Bureau of Industry and Security, Office of Export Enforcement, New York Field Office. “The Office of Export Enforcement will continue to use our unique authorities as the regulator and enforcer of our nation’s export control laws to keep the most dangerous goods out of the most dangerous hands.”
“The attempted theft of restricted U.S. technology by foreign actors severely threatens the United States’ defensive posture,” said Special Agent in Charge Craig Rupert, DCIS Northeast Field Office. “DCIS will continue to pursue these investigations with our Federal partners to shield America’s investment in national defense.”
If convicted of the charges, the defendants face up to 25 years in prison and a $1 million fine.
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.
The case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Craig R. Heeren and Peter W. Baldwin are in charge of the prosecution, with assistance from Trial Attorney Matthew Walczewski of the National Security Division’s Counterintelligence and Export Control Section.
Attorney General Lynch Announces Inaugural Attorney General’s Awards for Distinguished Service in Community PolicingRead the Press Release
Attorney General Loretta E. Lynch today announced the recipients of the inaugural Attorney General’s Awards for Distinguished Services in Community Policing, acknowledging the exceptional work of 12 law enforcements officers from nine jurisdictions across the country.
“These inspiring men and women have been nominated for these awards by their colleagues and their communities,” said Attorney General Lynch at today’s ceremony. “Each of them embodies the very best of their profession. They understand that their role is not just to enforce the law, but to secure justice. They recognize that the badge they wear represents a sacred trust – one that they strive to fulfill each and every day. And they view the citizens they serve not as adversaries or potential opponents, but as partners, allies and neighbors. Everything that they do – whether it is an effort as large as running a youth outreach program, or a gesture as small as learning a neighbor’s name – makes a real difference in their communities and we are here to share our admiration and our gratitude.”
Each of the officers honored has demonstrated exceptional commitment to the principles of community policing in the cities, towns and localities where they serve. Through their excellent service and dedication to professional, impartial and effective policing, these individuals are having a transformational impact on their agencies by embracing 21st Century Policing strategies that build and strengthen trust and mutual cooperation between law enforcement officers and the communities they serve.
The Attorney General’s Award for Distinguished Service in Community Policing recognizes individual state, local or tribal sworn police officers and deputies who exemplify remarkable achievements in innovative community policing strategies, criminal investigations and field operations. In the more than 18,000 law enforcement agencies throughout the country, the everyday work of individual officers often goes unsung. To remedy this, Attorney General Lynch announced the creation of this award to honor the outstanding work of rank-and-file officers like those recognized today.
The individuals recognized today are listed below:
INNOVATIONS IN COMMUNITY POLICING CATEGORY
Officers Andy Dobbins and Curt Vajgrt of the Urbandale Police Department, Iowa:
Officers Dobbins and Vajgrt helped develop and implement an education program for their local high school focused on the social issues and pressures young people face. The Culture of Integrity program teaches the importance of character, integrity and community and focuses on issues related to bullying, social media, personal safety and achieving success. The officers managed all the details, getting approval of the curriculum and teaching schedule, organizing the content of the workbooks, and co-teaching the classes. The program was so successful that two other schools requested it.
Sergeant Audrey Mazzuca of the Gainesville Police Department, Florida:
After a disproportionate number of minority youth were being arrested in the community, Sgt. Mazzuca worked with local stakeholders to develop programs that encourage officers and school administrators to replace student arrests with alternatives such as counseling, life skills training, and other services. Through Sgt. Mazzuca’s leadership, the kids developed trusting relationships with law enforcement resulting in a 79 percent decline in on-campus arrests in 2015.
Community Liaison Officers Lawrence E. Geis and Scott B. Clinger of the Columbus Division of Police, Ohio:
Community Liaison Officers Clinger and Geis have worked diligently to address residents’ and business owners’ concerns regarding a rash of criminal activity and their success has led to an examination of several problem hotels and businesses in Columbus. The officers were instrumental in the adoption of a new city ordinance establishing safety rules for hotels and motels. As a result, crime and calls for service at hotels and motels have decreased significantly.
CRIMINAL INVESTIGATIONS CATEGORY
Detective Jessie Gonzales of the Tohono O’odham Police Department, Arizona:
Assigned to crimes against children and sex crimes, Detective Gonzales is sometimes the only detective investigating these cases on the Tohono O’odham reservation, which covers three counties. He consistently goes above and beyond the call of duty when conducting investigations. He recently solved two rape cases, one involving a 10-year-old victim, and another involving a domestic violence stabbing case. In these and all of his other cases, he consistently goes beyond the call of duty when conducting investigations to make the victims feel heard and believed.
Detectives Adam Beha and Joseph Milewczik of the Chesapeake Police Department, Virginia:
Detectives Beha and Milewczik conducted a long-term investigation involving a heroin distribution organization that funneled large amounts of heroin to the streets of Hampton Roads. Due to the organization’s affiliation with a high-level street gang, the case became an Organized Crime Drug Enforcement Task Force investigation involving local and federal law enforcement partners. Their work led to the arrest of all the federal targets, and the detectives continue to work the case, which will likely lead to more dangerous narcotics distributors being identified, investigated and arrested.
Senior Officer Kimberly Miller of the Houston Police Department, Texas:
In April of 2015, a woman was beaten, sexually assaulted, and robbed. Senior Police Officer Kim Miller dissected the incident with skills gained in her 30 years of investigative work, leading to the arrest of three individuals suspected of involvement in the incident and additional assaults. Miller’s dedication led these cases to successful conclusions. Tireless in pursuit of the predators, she treated the victims with compassion and is a leader in her department.
FIELD OPERATIONS CATEGORY
Detective Greg Felton of the Glenn County Sheriff's Office, California:
Detective Felton works with multiple agencies to strengthen collaboration and integrate services while handling complex criminal investigations. During the past year, Detective Felton has been a driving force and team leader in the creation of the Glenn County System-wide Mental Health Assessment and Response Team, a collaborative multiagency team that responds to incidents such as school or community threats, suicidal behavior, and bullying. His ability to remain calm in any situation helps to quickly resolve a crisis situation.
Officer Bennie L. Evans of the Alexandria Police Department, Virginia:
Officer Evans embraces community policing during field operations and through voluntary participation in projects for the police department and local nonprofit organizations. A lead instructor in the department’s crisis intervention team, he provides officer training in suicide intervention, substance abuse, and other issues. He also serves as the department’s homeless outreach liaison. He works to help residents in need and has helped build trust in the communities he serves. Officer Evans has successfully de-escalated numerous violent and attempt suicide calls for service.
Officer JoAnn Walker of the San Francisco Police Department, California:
Officer JoAnn Walker has volunteered for extensive training on hostage negotiation, crisis counseling, and suicide prevention, dedicating her own time and resources to advance her expertise and educate her colleagues in crisis service support. Thanks to her initiative and advocacy, crisis counselors are better equipped to respond to people in need, and the relationship between law enforcement and the local community has improved.
Tax Return Preparer Charged with Preparing False Tax Returns, Bankruptcy Fraud and Naturalization FraudRead the Press Release
A former tax return preparation business owner was indicted by a federal grand jury in Kansas City, Kansas for aiding and assisting in the preparation and presentation of false income tax returns, making a false bankruptcy declaration, false testimony under oath in connection with a bankruptcy matter and unlawful procurement of citizenship or naturalization announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and Acting U.S. Attorney Thomas E. Beall of the District of Kansas.
According to the indictment filed on Sept. 7 and unsealed today, Geoffrey Rotich, owned and operated Inventax, a tax return preparation business in Shawnee, Kansas. The indictment alleges that Rotich prepared false and fraudulent tax returns for other individuals, claiming false deductions for medical and dental expenses and false education expenses. The indictment further alleges that, in connection with a Chapter 11 bankruptcy case, Rotich made false declarations in his bankruptcy petition and related schedules and made false statements under oath during a meeting of creditors. The indictment also alleges that Rotich obtained naturalization and citizenship to which he was not entitled on the basis of false representations on his application for naturalization.
If convicted, Rotich faces a statutory maximum sentence of three years in prison for each of the tax counts, a statutory maximum sentence of five years in prison for each of the bankruptcy counts and a statutory maximum sentence of 10 years in prison for the naturalization count. Rotich also faces a period of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo and Acting U.S. Attorney Beall commended the Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security investigators and the U.S. Trustee’s Office in Wichita, who conducted the investigation and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney D. Christopher Oakley of the District of Kansas, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owner of Tax Preparation Franchises in Illinois, Kansas and Missouri Convicted of Tax EvasionRead the Press Release
Underreported More Than $1.5 Million in Gross Receipts
A federal jury sitting in St. Louis, Missouri, found the local owner of a tax return preparation businesses guilty of two counts of tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
“While Semere Tsehaye was operating tax return preparation franchises in three states, he was generating false financial summaries and filing fraudulent returns to evade paying his own taxes,” said Principal Deputy Assistant Attorney General Ciraolo. “No one is above the law, and the department will continue to prosecute those who seek to violate our nation’s tax laws.”
According to the evidence at trial, Semere Tsehaye, 39, was the owner and operator of at least 20 Instant Tax Service (ITS) franchise locations operating in and around East St. Louis, Illinois; Kansas City, Kansas; and Kansas City and St. Louis, Missouri, from 2005 to 2011. ITS was a brand name of ITS Financial LLC, a nationwide tax preparation business headquartered in Dayton, Ohio. Tsehaye owned and operated his ITS franchise locations using two entities named A&S Tax Service LLC (A&S) and ERI Enterprises LLC (ERI).
The evidence at trial showed that during the years 2010 and 2011, Tsehaye generated fraudulent financial summaries that understated the gross receipts generated by A&S and ERI and provided them to his tax return preparer. The evidence also showed Tsehaye’s tax return preparer used these financial summaries to prepare Tsehaye’s individual income tax returns, which Tsehaye then filed with the Internal Revenue Service (IRS). These tax returns were false in that they underreported A&S and ERI’s gross receipts by a total of approximately $547,000 in 2010 and $1.03 million in 2011, causing a tax loss of more than $580,000.
“Mr. Tsehaye’s attempt to evade his taxes by creating false financial summaries to conceal over $1.5 million of income and by filing false tax returns is a theft from the American public,” said Special Agent in Charge Karl Stiften of IRS-Criminal Investigation. “We all pay when others swindle the government.”
In 2013, a Kansas City, Kansas federal court permanently barred A&S from further operating or preparing federal tax returns. Tsehaye was also permanently enjoined from engaging in certain abusive practices as well as preparing tax returns for any person other than himself beyond a 50 mile radius from his permanent residence.
Sentencing is scheduled for Jan. 4, 2017. Tsehaye faces a statutory maximum sentence of five years in prison for each count of tax evasion, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald 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 Missouri for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Man Sentenced to Prison in Fraudulent U.S. Treasury Check SchemeRead the Press Release
A Smithfield, North Carolina man was sentenced today to 20 months in prison for conspiring to defraud the government and commit theft of public money, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to documents filed with the court and court proceedings, Oscar Barahona Fiallos owned and operated a tax preparation business in Smithfield under the names El Caracol Inc. and Oscar’s Income Tax Service. In 2011 and 2012, Fiallos cashed large numbers of U.S. Treasury checks issued as a result of fraudulent tax returns filed with the Internal Revenue Service (IRS) in the names of third parties. The checks were provided to Fiallos by co-conspirators and Fiallos never met the third-party payees, who purportedly lived in New York, New Jersey and North Carolina. Fiallos deposited the checks into his bank account and then provided co-conspirators with cash equal to the value of the check, minus a check cashing fee. After a bank account was closed, Fiallos obtained a check cashing license so that he could continue cashing checks for his co-conspirators. He also prepared Individual Taxpayer Identification Number applications and false tax returns for third parties he did not meet and who did not sign the documents. Fiallos agreed that the intended loss to the IRS was more than $2.8 million.
Fiallos pleaded guilty on Feb. 18 to one count of a conspiring to defraud the United States and commit theft of public money. In addition to his prison sentence, Fiallos was ordered to serve three years of supervised release and pay restitution to the IRS in the amount of $2.8 million.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorneys Lauren M. Castaldi and Nathan P. Brooks of the Tax Division, who are prosecuting this case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of North Carolina for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Lam Research Corp. and KLA-Tencor Corp. Abandon Merger PlansRead the Press Release
Lam Research Corp. and KLA-Tencor Corp. abandoned their plans to merge after the Department of Justice informed the companies that it had serious concerns that the proposed transaction would harm competition.
"Innovation in the semiconductor industry is critically important to the American economy, and the proposed transaction presented concerns about the ability of the merged firm to foreclose competitors' development of leading edge fabrication tools and process technology on a timely basis,” said Acting Assistant Attorney General Renata Hesse of the Justice Department's Antitrust Division.
The proposed merger of Lam Research and KLA-Tencor would have combined a leading supplier of semiconductor fabrication equipment with a leading supplier of metrology and inspection equipment. Metrology and inspection technologies are growing increasingly important to the successful development of semiconductor fabrication equipment and process technology. KLA-Tencor's leading position in several metrology and inspection markets could have created the potential for Lam Research to foreclose its competitors by reducing their timely access to key KLA-Tencor equipment and related services.
During the investigation, the division cooperated with the Korean Fair Trade Commission, the Japanese Fair Trade Commission and China's Ministry of Commerce.
Lam Research, based in Fremont, California, is a leading provider of etch, deposition and clean tools and process technology used in the fabrication of semiconductors with approximately $6 billion in 2015 revenue.
KLA-Tencor, based in Milpitas, California, is the leading provider of semiconductor fabrication metrology and inspection equipment with approximately $3 billion in 2015 revenue.
Justice Department and Equal Employment Opportunity Commission Release Advancing Diversity in Law Enforcement ReportRead the Press Release
The Justice Department and the Equal Employment Opportunity Commission (EEOC) released a comprehensive report today that examines barriers and promising practices – in recruitment, hiring and retention – for advancing diversity in law enforcement. The report, developed with support from the Center for Policing Equity, aims to provide law enforcement agencies, especially small and mid-size agencies, with a resource to enhance the diversity of their workforce by highlighting specific strategies and efforts in place in police departments around the country.
The department and EEOC engaged with dozens of law enforcement leaders, officials and officers; researchers; civil rights advocates and other experts to produce the report. The report, which builds on the recommendations of the President’s Task Force on 21st Century Policing, notes that while greater workforce diversity alone cannot ensure fair and effective policing, a significant – and growing – body of evidence suggests that diversity can make policing more effective, more safe and more just. For example, among other benefits, increasing diversity can improve relations with the communities agencies serve, address language barriers to serve all residents, make agencies more open to reform and potentially reduce racial bias.
“This report is a resource for law enforcement agencies as they work to ensure that their ranks reflect the communities they serve – not simply by identifying the traditional barriers to a diverse work force, but also by highlighting real-world examples of law enforcement agencies that have effectively implemented smart policies in this area,” said Deputy Attorney General Sally Q. Yates. “We hope that law enforcement agencies will find this report useful in their ongoing efforts to strengthen trust with the broader community.”
“Ensuring that law enforcement agencies represent the diversity of the communities they serve can help restore trust and improve policing,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Building on innovative and creative strategies implemented by law enforcement around the country, our report highlights how agencies are bridging divides and creating lasting results. We hope agencies utilize this resource as they strive to strengthen their diversity and we look forward to engaging with law enforcement on this critical topic over the coming months.”
“When law enforcement agencies remove barriers to equal opportunity, the agencies and the diverse communities that they serve both stand to benefit,” said EEOC Chair Jenny R. Yang. “Departments from around the country have been working to build a robust and diverse talent pipeline to strengthen their workforce. This report raises up some of the most promising recruitment and retention practices of these departments.”
The promising practices highlighted in this report vary considerably. The report demonstrates, however, that successful diversity-building efforts by law enforcement agencies share several common themes, including:
- ensuring that the agency’s organizational culture is guided by community policing, procedural justice and cultural inclusivity;
- engaging stakeholders – both from within and outside the law enforcement agency – to help create a workforce that reflects the diversity of the community; and
- being willing to re-evaluate employment criteria, standards and benchmarks to ensure that they are tailored to the skills needed to perform job functions and consequently attract, select and retain the most qualified and desirable sworn officers.
The full report is available online here.
From October to December, the department and the EEOC will continue engaging with law enforcement by partnering with U.S. Attorneys around the country to host “Diversity Dialogues” in Madison, Wisconsin; Savannah, Georgia; and San Francisco. These sessions will facilitate working-group discussions with local law enforcement agencies about how to address the barriers and implement the promising practices outlined in the report. Members of law enforcement who would like to learn more about the Advancing Diversity in Law Enforcement initiative or the Diversity Dialogues, should email [email protected].
Department of Justice Awards $9.85 Million to Identify and Prevent Gender Bias in PolicingRead the Press Release
Attorney General Loretta E. Lynch announced today that the Justice Department’s Office on Violence Against Women (OVW) and Office for Victims of Crime (OVC) have awarded a total of 10 grants worth $9.85 million to various national and local organizations that will use the funding to implement the department’s Guidance on Identifying and Preventing Gender Bias in Law Enforcement Response to Sexual Assault and Domestic Violence.
The department’s guidance reflects input from a wide array of stakeholders and experts, including police leaders, victim advocates and civil rights advocates. The guidance intends to both examine how gender bias can undermine law enforcement’s response to sexual assault and domestic violence, as well as provide key principles to help ensure that gender bias does not impede efforts to keep victims safe and hold offenders accountable. Law enforcement agencies are encouraged to incorporate the guidance into clear policies, comprehensive training and effective supervision protocols.
The ten grant awards announced today will provide enhanced training and technical assistance nationally, support research and evaluation and provide resources to law enforcement agencies to implement the guidance.
Technical Assistance Awards:
- OVW award to International Association of Chiefs of Police (IACP), $599,742: IACP, in partnership with Futures Without Violence, will implement the Technical Assistance Initiative to Prevent Gender Bias in Law Enforcement Response to Sexual Assault and Domestic Violence. This project is designed to provide national technical assistance in order to build law enforcement capacity through trainings, highlighting promising practices and developing assessment tools and additional resources to assist local law enforcement agencies in implementing the guidance.
- OVW award to Police Executive Research Forum (PERF), $599,983: PERF, in partnership with End Violence Against Women International with the support of expert practitioners, will provide training and technical assistance to up to five law enforcement agencies and their partner advocacy organizations in implementing the principles identified in the department’s guidance. The project will also develop and disseminate a guidebook to help other law enforcement agencies implement the guidance.
- OVW award to End Violence Against Women International (EVAWI), $450,000: EVAWI will provide training and technical assistance for law enforcement on identifying and preventing gender bias, with a focus on sexual assault cases. The target audience for this project includes grantees and potential grantees of the Improving Criminal Justice Responses (ICJR) Grant Program, the Rural Grant Program, the STOP Violence Against Women Formula Grants Program, and the Grants to Tribal Governments Program.
OVC Demonstration Initiative Award to IACP, $5 million: With this award, IACP will lead the Identifying and Preventing Gender Bias in Law Enforcement Response to Victims Demonstration Initiative. The overall goal of this initiative is to build law enforcement’s capacity to develop sustainable strategies to address and eliminate the impact of gender bias on police response to, and investigation of, sexual and domestic violence; and implement agency-wide procedures that are trauma-informed and victim-centered. IACP, in collaboration with the National Crime Victims Law Institute and federal partners, will competitively select, provide oversight and manage awards for up to six demonstration sites to implement the department’s guidance and improve services to sexual assault and domestic violence victims, including underserved populations. The National Institute of Justice will assist in developing the evaluation plan and research model for the demonstration initiative.
OVW Research Award to Sam Houston State University, Texas, $393,049: The team will evaluate a training program based on the department’s guidance for all sworn law enforcement personnel in an urban police department.
OVW Improving Criminal Justice Response Awards: Five grantees under OVW’s Improving Criminal Justice Responses to Sexual Assault, Domestic Violence, Dating Violence and Stalking Grant Program identified plans to integrate the principles outlined in the department’s guidance as part of the implementation of their grant project: the city of Salem, Massachusetts, $450,000; St. Louis County, Missouri, $750,000; the YMCA of Greater Cincinnati, Ohio, $450,000; the South Dakota Office of the Attorney General, $750,000; and Human Options, California, $450,000.
Attorney General Lynch made this announcement during a Town Hall at Howard University with youth and law enforcement on increasing diversity in policing and building trust, as part of National Community Policing Week, which President Obama designated as Oct. 2 through 8, 2016, in a proclamation issued on Friday, Sept. 30. The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations and foster mutual trust and respect between law enforcement and citizens. National Community Policing Week builds on President Obama’s efforts to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report. As part of the Obama Administration’s commitment to building stronger relationships between law enforcement and the communities they serve, the Department of Justice is leading nearly 400 events in support of community policing efforts around the country.
For more information, please visit National Community Policing Week or the Attorney General’s Community Policing Tour.
***The information regarding the grant awards was revised on Oct. 28, 2016, to reflect an additional award that had been made.
Court Shuts Down Mississippi Tax Return PreparerRead the Press Release
Today a federal court in Jackson, Mississippi permanently barred Christopher Chamberlin from preparing federal tax returns for others. In addition to enjoining Chamberlin from preparing, filing, or assisting in the preparation or filing of federal tax returns and amended returns, the court ordered Chamberlin to deliver a copy of the injunction to all customers for whom he prepared a return after Jan. 1, 2014, and deliver a list of those customers to the United States. The court also ordered Chamberlin to turn over copies of all returns he prepared since Jan. 1, 2014, to the United States.
On April 8, the government filed suit against Chamberlin and alleged that he prepared federal income tax returns for customers that claimed fabricated business losses for customers who did not have a business and fictitious losses from farming businesses for customers who did not own farms. The government alleged that Chamberlin reported the fictitious losses and expenses to generate and/or increase the Earned Income Tax Credit or to create a larger refund than his customers otherwise would have been able to claim.
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.
United States Takes Actions to Address Alleged Renewable Fuel Standard Violations by NGL Crude Logistics and Western Dubuque BiodieselRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced the filing of a complaint against NGL Crude Logistics LLC (NGL) and Western Dubuque Biodiesel LLC and a settlement with Western Dubuque to address alleged violations of the Renewable Fuel Standard.
The complaint, filed in the U.S. District Court for the Northern District of Iowa in Cedar Rapids, Iowa, alleges that NGL entered into a series of transactions with Western Dubuque in 2011 that resulted in the generation of approximately 36 million invalid renewable identification numbers (RINs). RINs are credits created when a company produces qualifying renewable fuel and can be traded or sold to refineries and importers to use for compliance with renewable fuel production requirements.
Under the settlement, Western Dubuque has agreed to pay $6 million to resolve alleged Renewable Fuel Standard program violations for generating RINs for renewable fuel that was produced using unapproved feedstocks and production processes. A feedstock is the basic material used in the production of renewable fuel. The consent decree does not resolve any claims against NGL.
“Congress passed the Renewable Fuels Standards program to incentivize production of biofuels in order to achieve substantial reductions in greenhouse gas emissions, reduce the United States’ dependence on foreign oil and modernize the United States’ renewable energy industry,” said Assistant Attorney General John C. Cruden for the Department of Justice Environment and Natural Resources Division. “The Justice Department is committed to ensuring that Congress’ goals are not undermined by entities that attempt to compromise the integrity of the incentive program.”
“These cases uphold the energy independence and greenhouse gas reduction purposes of the law that Congress passed,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “EPA is committed to a level the playing field for responsible companies, and to ensuring that companies that illegally obtain an unfair competitive advantage are held to account.”
“The Department of Justice is committed to maintaining the integrity of the Renewable Fuel Standard program,” said U.S. Attorney Kevin W. Techau for the Northern District of Iowa. “Congress enacted incentives for the production of biofuels to make the United States stronger and more energy independent. This $ 6 million settlement supports that goal.”
The allegations in the complaint remain assertions until they are proved.
The complaint alleges that in 2011, NGL purchased more than 24 million gallons of biodiesel on the open market, and that approximately 36 million RINs had been assigned to the biodiesel. NGL sold most of the RINs to other entities. NGL then sold the biodiesel to Western Dubuque, but designated it as a “feedstock.” Western Dubuque reprocessed the biodiesel provided by NGL and generated a second set of RINs for the same fuel. Western Dubuque sold the reprocessed biodiesel and the second set of RINs back to NGL. NGL then sold most of these RINs to other entities.
The complaint asks the court to require NGL to retire 36 million RINs to offset the harm caused by the alleged violations and to pay a civil penalty.
EPA estimates that the generation of the second set of RINs alleged in this case resulted in excess greenhouse gas emissions equivalent to 151,319 metric tons of carbon dioxide.
EPA learned that Western Dubuque used improper feedstocks during a 2011 inspection of the company’s biodiesel facility, located in Farley, Iowa. EPA then conducted an extensive investigation into transactions between Western Dubuque and NGL and determined that the feedstocks that NGL supplied to Western Dubuque were biodiesel, which is not a permitted feedstock and that other companies had already generated RINs for the product. Western Dubuque informed EPA that it has not used biodiesel as a feedstock since 2011.
EPA is responsible for developing and implementing regulations to ensure that transportation fuel sold in the United States contains a minimum volume of renewable fuel. The Renewable Fuel Standard program - created under the Energy Policy Act of 2005 - was developed in collaboration with refiners, renewable fuel producers, and many other stakeholders. It was expanded and strengthened under the Energy Independence and Security Act of 2007, which was designed to encourage the blending of renewable fuels into our nation’s motor vehicle fuel supply and reduce the nation's dependence on foreign oil, help grow the nation's renewable energy industry and achieve greenhouse gas reductions.
Western Dubuque owns and operates a 30 million gallon biodiesel plant located in Farley, Iowa. NGL is an energy service company that transports fuel and other products. At the time of the alleged violations, NGL was known as Gavilon LLC.
The settlement with Western Dubuque is subject to a 30-day public comment period and final court approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
For more information about the settlement and the complaint, visit https://www.epa.gov/enforcement/western-dubuque-biodiesel-llc-clean-air-act-settlement.
Former IRS Revenue Officer and Owner of Tax Consulting Business Pleads Guilty to Tax EvasionRead the Press Release
A former Internal Revenue Service (IRS) revenue officer pleaded guilty today in the U.S. District Court in the Middle District of North Carolina to one count of tax evasion and one count of 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, and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
According to documents filed with the court, Henti Lucian Baird, 60, and a resident of Greensboro, North Carolina, filed tax returns each year but has not paid his self-assessed taxes since at least 1998. Baird was an IRS revenue officer for 12 years before he established HL Baird’s Tax Consultants, which he operated from 1989 to 2014. Baird advertised himself to clients as specializing in “IRS problems, delinquent returns, offer-in-compromise, tax problems, delinquent employee taxes and release of liens and levies.” Baird, in turn, used his knowledge and experience to evade payment of his own taxes, creating over 10 nominee bank accounts in the names of his children to hide hundreds of thousands of dollars, submitting false Form 433-A to the investigating revenue officer that did not reveal all of his nominee bank accounts, filing, in bad faith, a Chapter 13 bankruptcy petition, a cash offer in compromise, a request for discharge and an application for subordination of his federal tax lien and transferring funds out of nominee accounts to avoid impending IRS levies. During this time, Baird continued to pay the mortgage on his 4,300 square-foot home, annual fees for his timeshare in Florida and car payments on his BMW. Baird admitted to the revenue officer and the mortgage holder that he did not keep money in bank accounts because he feared a levy or garnishment.
Baird also used his stepson’s identity, without his knowledge, to apply for a Preparer Tax Identification Number, which Baird then used to file over 900 income tax returns for clients, as well as his own income tax returns. Additionally, Baird submitted, under penalties of perjury, at least 120 Forms 2848, Power of Attorney and Declaration of Representative, on behalf of clients that falsely stated he was an enrolled agent, even though the IRS revoked his authorization to represent taxpayers.
The penalties and interest on Baird’s taxes will continue to accrue until he pays the IRS in full. As of Sept. 20, Baird’s evasion of payment totals $477,028.80 in tax, penalties and interest for tax years 1998 through 2013.
U.S. District Judge Thomas D. Schroeder for the Middle District of North Carolina set sentencing for Jan. 17, 2017. Baird faces a statutory maximum sentence of five years in prison for his conviction on the tax evasion count, and a statutory maximum sentence of three years in prison on the obstruction count, as well as a period of supervised release and monetary penalties. As a condition of the plea agreement, Baird agreed to pay full restitution to the IRS.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of IRS-Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Clifton T. Barrett of the Middle District of North Carolina and Trial Attorney Kathryn A. Kimball of the Justice Department’s Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Utah-Based Lenders Agree to Pay Nearly $10 Million to Resolve Alleged False Claims Act Liability Arising from FHA-Insured Mortgage LendingRead the Press Release
Primary Residential Mortgage Inc. (PRMI) and SecurityNational Mortgage Company (SecurityNational) have agreed to pay the United States $5 million and $4.25 million, respectively, to resolve separate allegations that they violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today. Both lenders are headquartered in Salt Lake City, Utah.
“The FHA program provides important economic support for homeownership and community development,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The department has and will continue to ensure that program participants adhere to applicable requirements and will pursue those that knowingly misuse the program for their own gain and to the detriment of homeowners and the public.”
“PRMI obtained HUD insurance by intentionally claiming its loans met HUD’s quality standards while knowing many of its loans did not meet those standards,” said Acting U.S. Attorney Bob Troyer for the District of Colorado. “When those loans failed, it was the government who suffered the loss. We will continue our efforts to hold housing lenders accountable for fraudulent conduct.”
“HUD relies on the Direct Endorsement Lenders like SecurityNational to make sure their loans are made only after a rigorous and thorough review,” said U.S. Attorney Paul J. Fishman for the District of New Jersey. “In this case, SecurityNational has admitted it approved loans that it had no business endorsing, potentially damaging a vital FHA program and other potential borrowers.”
Since at least January 2006, SecurityNational and PRMI have participated as Direct Endorsement Lenders (DELs) in the FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan before it is endorsed for FHA insurance for compliance with FHA’s credit and eligibility standards, but instead relies on the efforts of the DEL to verify compliance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.
As part of the settlements announced today, both PRMI and SecurityNational admitted they certified loans for FHA mortgage insurance that did not meet HUD underwriting requirements regarding borrower creditworthiness and eligibility.
PRMI admitted it endorsed loans that were not eligible for FHA mortgage insurance, including loans where:
- PRMI failed to document the assets used to qualify the borrower for FHA mortgage insurance and omitted liabilities owed by the borrower from the underwriting analysis;
- PRMI failed to document income used to qualify the borrower for FHA mortgage insurance;
- PRMI failed to verify the borrower’s earnest money deposit; and
- The borrower was delinquent on a second, pre-existing FHA mortgage.
SecurityNational admitted it endorsed loans that were not eligible for FHA mortgage insurance, including loans where:
- The borrower was delinquent on federal debt and had an unpaid court-ordered judgment;
- The borrower was four months delinquent on the underlying mortgage SecurityNational refinanced into an FHA loan;
- The mortgage loan amount exceeded HUD’s loan to value requirements;
- SecurityNational failed to document income used to qualify the borrower for FHA mortgage insurance; and
- SecurityNational failed to analyze the borrower’s delinquent credit history.
As a result of PRMI’s and SecurityNational’s conduct and omissions, HUD insured loans endorsed by each lender that were not eligible for FHA mortgage insurance under the DEL program and that HUD would not otherwise have insured. HUD subsequently incurred substantial losses when it paid insurance claims on those loans.
“Today’s settlements resolve allegations that these lenders, entrusted by American taxpayers to abide by FHA rules, failed to comply with certain FHA origination, underwriting and quality control requirements,” said Inspector General David A. Montoya for HUD. “The settlements demonstrate a continued commitment to address the failures and halt the business practices that potentially harm the FHA program and its participants.”
The settlement with SecurityNational is the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of New Jersey. The settlement with PRMI is the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division’s Commercial Litigation Branch, and the U.S. Attorney’s Office for the District of Colorado.
The claims asserted against SecurityNational and PRMI are allegations only and there has been no determination of liability.
September 11th Victim Compensation Fund Begins Payments to Group B ClaimantsRead the Press Release
September 11th Victim Compensation Fund (VCF) Special Master Rupa Bhattacharyya announced that the VCF began payments today on Group B claims after the funding to pay became available on Oct. 1 as set forth in the 2015 Reauthorization Act of the VCF. Group A claims are claims for which a loss was determined and a letter notifying the claimant of the award decision on the claim was issued on or before Dec. 17, 2015. Group B claims are those that are not in Group A.
The VCF has been preparing to issue Group B payments for several weeks and the Special Master has authorized more than 500 claims for payment. Payments will be made first to those with exigent circumstances and then in order based on the date the claimant was notified of his or her award. Once the Department of Justice provides the payment information to the U.S. Department of the Treasury, it may take up to three weeks for the payment to be made to the claimant’s designated bank account.
“In the last 10 weeks since I transitioned into the role of Special Master, the VCF has issued determinations on more than 900 compensation claims and amendments and just under 1,200 eligibility claims and amendments,” said Special Master Bhattacharyya. “This reflects the overall hard work done by the VCF team over the last several months and continues to demonstrate our progress and commitment to the 9/11 community and to providing deserved compensation to those who have suffered as a result of the terrorist attacks of Sept. 11, 2001.”
The VCF continues to focus on processing Group B claims that were submitted before Aug. 1, when the new claim form became available. Claims are being processed in priority order, with decisions being rendered on the oldest claims before claims that have been pending for less time. As of early September, there were nearly 1,300 of these claims - approximately 800 of which were submitted more than one year ago. The VCF anticipates that compensation claims that include all information required for review and that were submitted more than two years ago should be completed by year end and hopes to also make substantial progress on similarly situated claims submitted over one year ago.
As of Oct. 3, the VCF has issued more than 10,700 awards over the life of the program, including 9,130 awards in Group A and 1,573 awards in Group B. When combined, these awards total approximately $2.05 billion ($1.822 billion to Group A and $228 million to Group B).
For additional information about how to file a claim, please visit the “How to File a Claim” page on the VCF’s website at www.vcf.gov and information on policies and procedures can be obtained at https://www.vcf.gov/pdf/VCFPolicy.pdf. If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555. Individuals who have been diagnosed with a 9/11-related illness that is not currently on the list of eligible conditions should periodically check the World Trade Center Health Program website at http://www.cdc.gov/wtc/conditions.html to see if the condition is added to the list.
FBI Citizens Academy Alumni Visit INTERPOL WashingtonRead the Press Release
INTERPOL Washington FBI Academy Alumni from Birmingham, Alabama, Visit INTERPOL Washington's International Operations and Command Center.On September 29, 2016, members of the Birmingham Chapter of the Federal Bureau of Investigation (FBI) Citizens Academy Alumni Association (FBICAAA) visited INTERPOL Washington, the U.S. National Central Bureau (USNCB).
The visit was one of several the group took to federal law enforcement organizations in the Washington, D.C. area this week. The group received an overview of the operations and capabilities of the USNCB followed by an opportunity to ask questions of USNCB staff. They also toured the INTERPOL Operations and Command Center (IOCC).
FBI Citizens Academy programs give business, religious, civic, and community leaders around the United States a six-to-eight week look inside the FBI. Classes meet in the evening in FBI offices.
The mission of the Academies is to foster greater understanding of the role of federal law enforcement in the community through frank discussion and education. Candidates are selected by the special agent in charge of the local FBI field office. To find out more about the FBI Citizens Academy in your area, contact your local field office at https://www.fbi.gov/contact-us .
Department of Justice Awards $119 Million to Hire Community Policing OfficersRead the Press Release
Attorney General Loretta E. Lynch today announced $119 million in grant funding through the Department of Justice, Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The Attorney General announced funding awards to 184 law enforcement agencies across the nation, aimed at creating, or in some cases protecting, more than 900 law enforcement positions. The Attorney General made today’s announcement in Dallas, where the Dallas Police Department will receive $3.1 million through the COPS Hiring Program to hire 25 officers.
CHP provides funding directly to state, local and tribal law enforcement agencies for the hiring and rehiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts. All CHP applicants were asked to identify a specific crime and disorder problem area and how funding would be used to initiate or enhance their capacity to implement community policing approaches to that problem area.
In 2016, the COPS Office gave additional consideration to applicant agencies selecting the category of “Building Trust,” based on the final report of the President’s Task Force on 21st Century Policing. Additional consideration was also given to agencies that selected the areas of school-based policing, homicide or violent crime, and homeland security. Applicants who committed to hiring or rehiring at least one military veteran under CHP also received additional consideration for funding. The complete list of award recipients can be found here: http://www.cops.usdoj.gov/default.asp?Item=2888.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 129,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
Department of Justice Announces National Community Policing WeekRead the Press Release
Attorney General Lynch, Dallas Cowboys to hold 21st Century Community Policing Youth Forum on Facebook Live!
Justice Department to Announce nearly $119 million in Grant Awards to Advance Community Policing Efforts
As part of the Obama Administration’s commitment to building stronger relationships between law enforcement and the communities they serve, the Department of Justice will lead nearly 400 events in support of community policing efforts around the country. To further that effort, President Obama has designated the week of Oct. 2-8, 2016, as National Community Policing Week. The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and citizens. National Community Policing Week builds on President Obama’s efforts to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report.
“Strengthening the relationship between law enforcement officers and the communities we serve and protect is one of my top priorities,” said Attorney General Loretta E. Lynch. “During National Community Policing Week, we will be hosting hundreds of events around the country designed to foster dialogue, promote cooperation, and help citizens and law enforcement officers get to know one another as partners in our shared efforts to build stronger, safer, and more just communities for every American.”
Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect and serve. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.
To launch the national week of engagement, Attorney General Lynch will visit Dallas, Texas on MONDAY, OCT. 3, hold a 21st Century Community Policing Youth Forum with students, officer cadets, and Jason Witten and Barry Church of the Dallas Cowboys known for their work to bring communities and law enforcement together. The forum will also be featured on the Department of Justice Facebook Live page.
While in Dallas, the Attorney General will announce $119 million in grant funding through the Department of Justice, Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). These grants will provide matching funding awards to 184 law enforcement agencies across the nation, aimed at creating, or in some cases protecting, more than 900 law enforcement positions. CHP provides funding directly to state, local and tribal law enforcement agencies for the hiring and rehiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts.
The following day, TUESDAY, OCT. 4, the Attorney General will join Dallas Mayor Mike Rawlings and Deputy Mayor Pro Tem Erik Wilson at a National Night Out event at the University of North Texas at Dallas. National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, better places to live. Established in 1984 from a Department of Justice Bureau of Justice Assistance (BJA) grant, the goal of National Night Out is to build relationships with and between communities and law enforcement, to promote crime prevention efforts, and to foster collaborative engagement amongst neighbors who are committed to working together to keep each other safe. The Attorney General also attended National Night Out earlier in the summer during her visit to Detroit for the Justice Department’s first Justice Forum.
Also while in Dallas, the Attorney General will attend several meetings with rank-and-file officers, hold a roundtable discussion with local police chiefs, and pay respects to the families of those officers who tragically lost their lives in the line of duty this past July.
Later in the week, Attorney General Lynch will participate in a Town Hall on diversity in law enforcement hosted by Howard University. This discussion is part of the Engaging College Students in 21st Century Law Enforcement Project that resulted from a grant provided by the DOJ Office of Community Oriented Policing Services (COPS) to explore strategies that encourage recruitment among diverse millennials for law enforcement positions.
On THURSDAY, OCT. 6, Attorney General Lynch and Deputy Attorney General Sally Q. Yates will deliver remarks at the inaugural Attorney General’s Awards for Distinguished Service in Community Policing, along with Director Ronald Davis of the COPS Office. The Attorney General’s Award for Distinguished Service in Community Policing recognizes individual state, local or tribal sworn police officers and deputies who exemplify remarkable achievements in innovative community policing strategies, criminal investigations, and field operations.
Attorney General Lynch will conclude National Community Policing week in Newark, New Jersey, where she will hold the last in a series of regional Justice Forums on FRIDAY, OCT. 7. In the wake of the recent events, including both the tragic officer-involved deaths of civilians and appalling, premeditated attacks on police officers, the Department of Justice launched a series of convenings—Justice Forums—in cities across the nation to provide a forum for local community leaders, youth advocates, law enforcement, and state and local officials to critically examine police-community issues in their respective cities and regions in order to seek solutions together. Thus far, Attorney General Lynch has hosted a Justice Forum in Detroit, and Deputy Attorney General Yates has hosted a Justice Forum in Denver.
Additionally, Deputy Attorney General Yates will hold a Justice Forum in Atlanta on MONDAY, OCTOBER 3, to commence National Community Policing Week. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and Director Paul Monteiro of the Community Relations Service (CRS) will join Deputy Attorney General Yates at the Atlanta Justice Forum. Assistant Attorney General Karol Mason of the Office of Justice Programs (OJP) will also attend the Newark Justice Forum, along with Principal Deputy Assistant Attorney General Gupta and Director Davis of the COPS Office.
For more information on National Community Policing Week or the Attorney General’s Community Policing Tour, please visit https://www.justice.gov/ag/community-policing-tour.
21st CENTURY COMMUNITY POLICING YOUTH FORUM ON FACEBOOK LIVE
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Jason Witten of the Dallas Cowboys
Barry Church of the Dallas Cowboys
WHEN: MONDAY, OCTOBER 3, 2016
2:30 p.m. CDT
WHERE: Sunset High School
2120 W. Jefferson Boulevard
Dallas, TX 75208
OPEN PRESS (Media Gather: 1:30 p.m. CDT // Final Access: 2:00 p.m. CDT)
DOJ FACEBOOK LIVE
NOTE: Please RSVP to [email protected] by Sunday, Oct. 2, at 8:00 p.m. CDT. Media inquiries regarding logistics should be directed to [email protected] and [email protected].
NATIONAL NIGHT OUT EVENT WITH THE DALLAS POLICE DEPARTMENT
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Mayor of Dallas Mike Rawlings
Director Ronald Davis of the Office of Community Oriented Policing Services
WHEN: TUESDAY, OCTOBER 4, 2016
5:30 p.m. CDT
WHERE: University of North Texas at Dallas
7300 University Hills Boulevard
Dallas, TX 75241
OPEN PRESS
NOTE: Following the Attorney General’s remarks at National Night Out, Attorney General Lynch will participate in a media availability. Media interested in attending National Night Out and the media availability should RSVP to [email protected] by Monday, Oct. 3, at 5:00 p.m. CDT. Media inquiries regarding logistics should be directed to [email protected] and [email protected].
DIVERSITY IN LAW ENFORCEMENT TOWN HALL WITH THE ATTORNEY GENERAL AT HOWARD UNIVERSITY
WHO: Attorney General Loretta E. Lynch
WHEN: WEDNESDAY, OCTOBER 5, 2016
3:30 p.m. EDT
WHERE: Howard University
Armour J. Blackburn University Center
2397 Sixth Street, NW
Washington, DC 20059
OPEN PRESS (Media Access: 2:30 p.m. EDT // Final Access: 3:15 p.m. EDT)
INAUGURAL ATTORNEY GENERAL’S AWARD FOR DISTINGUISHED SERVICE IN COMMUNITY POLICING CEREMONY
WHO: Attorney General Loretta E. Lynch
Deputy Attorney General Sally Q. Yates
Director Ronald Davis of the Office of Community Oriented Policing Services
WHEN: THURSDAY, OCTOBER 6, 2016
2:00 p.m. EDT
WHERE: U.S. Department of Justice
Great Hall
950 Pennsylvania Avenue, NW
Washington, DC 20530
OPEN PRESS (Media Access: 1:00 p.m. EDT // Final Access: 1:45 p.m. EDT)
LIVESTREAMED AT WWW.JUSTICE.GOV/LIVE-STREAM.
REGIONAL JUSTICE FORUM IN NEWARK
WHO: Attorney General Loretta E. Lynch
U.S. Attorney Paul Fishman of the District of New Jersey
Assistant Attorney General Karol Mason of the Office of Justice Programs
Head of the Civil Rights Division Vanita Gupta
Director Ronald Davis of the Office of Community Oriented Policing Services
WHEN: FRIDAY, OCTOBER 7, 2016
10:30 a.m. EDT
WHERE: Newark Public Library
5 Washington Street
Newark, NJ 07102
OPEN PRESS (Media Access: 9:30 a.m.EDT //Final Access 10:10 a.m. EDT)
NOTE: Additional details for each event will be issued as they become available. Media inquiries regarding logistics should be directed to [email protected] and [email protected].
Additionally, the event information for Deputy Attorney General Yates National Community Policing Week events can be found below:
REGIONAL JUSTICE FORUM IN ATLANTA
WHO: Deputy Attorney General Sally Q. Yates
Head of the of the Civil Rights Division Vanita Gupta
Director Paul Monteiro of the Community Relations Service
U.S. Attorney John A. Horn of the Northern District of Georgia
WHEN: MONDAY, OCTOBER 3, 2016
10:30 a.m. EDT
WHERE: National Center for Civil and Human Rights
100 Ivan Allen Jr Boulevard NW
Atlanta, GA 30313
OPEN PRESS AT THE TOP (Media Gather: 9:45 a.m. EDT // Final Access: 10:15 a.m. EDT)
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to Robert Page at [email protected].
EVENT ANNOUNCING A NEW INTERAGENCY REPORT ON ADVANCING DIVERSITY IN LAW ENFORCEMENT
WHO: Deputy Attorney General Sally Q. Yates
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division
Equal Employment Opportunity Commission Chair Jenny R. Yang
WHEN: WEDNESDAY, OCT. 5, 2016
9:30 a.m. EDT
WHERE: U.S. Department of Justice
7th Floor Press Conference Room
950 Pennsylvania Avenue, NW
Washington, DC 20530
OPEN PRESS (Media Access: 8:45 a.m. EDT // Final Access: 9:15 a.m. EDT)
NOTE: Press inquiries regarding logistics should be directed to the Office of Public Affairs at [email protected] or 202-514-2007.
Southern Coal Corporation to Make System-Wide Upgrades to Reduce Water Pollution from Mining Operations in AppalachiaRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Southern Coal Corporation and 26 affiliated mining companies that requires the companies to make comprehensive upgrades to their coal mining and processing operations to prevent discharges of polluted wastewater from their mines in Appalachia. The estimated cost of these measures is $5 million.
The settlement also requires the establishment of a $4.5 million letter of credit and a standby trust that will guarantee sufficient funding for and a mechanism to accomplish, compliance with the Clean Water Act and the work the companies have agreed to perform under the settlement, should the companies fail to do so. The companies will also pay a $900,000 civil penalty, divided among the federal government and the four state co-plaintiffs, Alabama, Kentucky, Tennessee and Virginia.
The settlement resolves alleged violations of state-issued Clean Water Act National Pollutant Discharge Elimination System (NPDES) permits by illegally discharging various pollutants at the companies’ mining and processing operations in Alabama, Kentucky, Tennessee, Virginia and West Virginia and violations of the companies’ legal responsibilities to sample the quality of their discharges to rivers and streams. The estimated annual pollutant reductions through implementation of the settlement is approximately five million pounds.
“This settlement is designed to bring the companies into compliance with the Clean Water Act and requires actions that should prevent future violations,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “We appreciate our state partners working with us on the consent decree and for their joint oversight efforts with us in the future.”
“Discharging pollution from coal mining into waterways is a serious threat to clean water, and that’s why EPA stepped in on behalf communities across Appalachia,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “Company-wide compliance programs like the one Southern Coal Corporation will establish are critical to protecting our lakes, rivers and streams and the people who depend on them.”
Under the settlement, Southern Coal Corporation and its affiliated mining companies must implement a series of measures to ensure compliance and prevent future Clean Water Act violations at their coal mining operations, including:
- Implementing a company-wide, EPA-approved environmental management system.
- Maintaining a centralized data management system to track audit results, violations, water sampling data and compliance efforts.
- Constructing a public website for posting documents such as NPDES permits, discharge monitoring reports, water sampling data, effluent violation information, notices of violations and compliance orders.
- Conducting regular internal and independent third-party environmental audits and outlet inspections and undertaking necessary alterations or maintenance measures.
- Providing training for all employees whose responsibilities include environmental compliance and contractors hired to perform duties required by the consent decree.
- Paying a civil penalty of $900,000.
- Paying escalating stipulated penalties if Clean Water Act permit violations continue to occur.
- Providing for a letter of credit and a standby trust and trustee to ensure that there is sufficient money and a mechanism to achieve compliance with the consent decree and the Clean Water Act, if Defendants fail to perform.
The government complaint filed concurrently with the settlement alleged that over the last five years, Southern Coal Corporation mining and processing operations have violated discharge limits for pollutants including iron, total suspended solids, aluminum, pH and manganese in their state-issued permits. The complaint also alleged that Southern Coal Corporation failed to submit complete and timely discharge monitoring reports, made unauthorized discharges and failed to respond to EPA requests for information.
EPA discovered the violations through investigations and inspections of several Southern Coal Corporation mining operations, reviewing various information provided by the companies and coordinating with the affected state governments.
Created in 1972 by the Clean Water Act, the National Pollutant Discharge Elimination System permit program addresses water pollution by authorizing states, with EPA oversight, to issue permits that set strict limits for the discharge of certain types of pollutants by certain types of entities.
The proposed consent decree, lodged in the U.S. District Court for the Western District of Virginia, is subject to a 30-day public comment period and approval by the federal court.
Information about submitting a public comment is available at: www.justice.gov/enrd/consent-decrees.
For more information on this settlement and to read the consent decree, go to: https://www.epa.gov/enforcement/southern-coal-corporation-clean-water-settlement
Justice Department Files Housing Discrimination Lawsuit Against Owner and Managers of Florida Mobile Home ParkRead the Press Release
This Case is the Third Mobile Home Park Race Discrimination Case the Justice Department Has Filed in the Middle District of Florida in the Last Year
The Justice Department announced today that it has filed a lawsuit against James C. Goss, the owner, and Cathy Plante and Joey Gwozdz, the managers, of May Grove Village Mobile Home Park, an 81-lot property in Lakeland, Florida. The lawsuit alleges that the defendants discriminated against African Americans in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the Middle District of Florida, alleges that the managers falsely told African Americans that no mobile homes, or fewer mobile homes, were immediately available for sale, but told similarly situated white persons that more mobile homes were available. According to the complaint, the managers also quoted prospective African-American purchasers higher prices and worse financial terms than similarly situated white purchasers. The lawsuit is based on the results of testing conducted by the department’s Fair Housing Testing Program, in which individuals pose as buyers to gather information about possible discriminatory practices.
“Housing providers cannot pick and choose homebuyers based on race,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue to vigorously enforce the Fair Housing Act to ensure that all people in this country are able to secure housing without facing unlawful barriers.”
The suit seeks monetary damages to compensate victims, civil penalties against the defendants to vindicate the public interest and a court order barring future discrimination.
Individuals who have information about, or who believe they may have been discriminated against at May Grove Village, located at 1725 Gibsonia Galloway Road, in Lakeland, should contact the Justice Department toll-free at 1-800-896-7743, option 94, or by email at [email protected]. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.
Goss ComplaintJustice Department Announces Nine Studies Focused on Approaches to Life-Saving Work Authorized by the Violence Against Women ActRead the Press Release
Today the Justice Department’s Office on Violence Against Women (OVW) announced nine new research projects—the first in its Research and Evaluation Initiative launched earlier this year. All nine awards focus on learning more about effective approaches for doing the life-saving work authorized through the Violence Against Women Act (VAWA) and examine specific issues related to victims from underserved and marginalized populations.
The Research and Evaluation Initiative emphasizes researcher-practitioner partnerships that can identify effective strategies and lead to sustainable ways of responding to sexual assault, domestic and dating violence and stalking, and reducing the harmful impact of these crimes on victims and communities.
“These new research and evaluation studies are critical because they focus on issues that are extremely understudied – such as culturally-specific programs for Latina victims, the effects of victimization on incarcerated women, restorative justice and gender bias,” said OVW Principal Deputy Director Bea Hanson, Ph.D. “The more we identify approaches and models that effectively work with specific populations, the more effective we can be in helping victims find the justice they need and deserve.”
OVW’s Research and Evaluation Initiative is developing a comprehensive understanding of what we know about the effectiveness of approaches funded by the VAWA and determine which practices require a closer look and further study.
The nine studies are:
1. University of California, Los Angeles, $399,998: A study of the effects of violence and victimization on incarcerated women and an evaluation of a program designed to reduce the recurrence of violence and victimization in their lives.2. Washington University, $379,980: An evaluation of an approach to using cognitive processing therapy in rape crisis centers.
3. Community Health and Social Services Center, $348,339: A study of how a culturally-specific program for Latina victims of domestic and sexual violence meets victims’ self-defined needs.
4. University of New Hampshire, $398,857: A study of a trauma-informed residential program for victims of domestic violence who struggle with substance use disorders.
5. International Rescue Committee Inc., $314,666: A study of the experiences, service needs and help-seeking strategies of refugees, asylum-seekers and other newly-arrived immigrants who are victims of domestic violence and sexual assault.
6. University of Kentucky Research Foundation, $499,999: An examination of the healing and self-sufficiency benefits of an agriculture-based program for residents of a domestic violence shelter.
7. Portland State University, $400,000: A study of patterns and disparities in the family court experiences of litigants from cultural and linguistic minority groups.
8. Sam Houston State University, $393,049: An evaluation of a training program for all sworn law enforcement personnel in an urban police department on the Justice Department’s guidance on gender-bias policing.
9. Fund for the City of New York, $271,720: A survey of programs that use restorative justice to address domestic violence and the development of guidelines for these programs. Restorative justice seeks to rehabilitate offenders through reconciliation with the people and communities they have victimized.* * *
OVW provides leadership in developing the nation’s capacity to reduce violence against women through the implementation of VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing 21 federal grant programs, OVW often undertakes initiatives in response to special needs identified by communities facing acute challenges.
Northern California Real Estate Investor Agrees to Plead Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor pleaded guilty for his role in a conspiracy to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Stephan Florida, a real estate investor of Danville, California, pleaded guilty to one count of bid rigging in the U.S. District Court for the Northern District of California in Oakland yesterday. The defendant was charged in an indictment returned by a federal grand jury in the Northern District of California on November 19, 2014.
According to court documents, between May 2008 and December 2010, Florida conspired with others not to bid against one another and instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Alameda County. Florida made and received payoffs for the agreements not to bid, diverting money that would have otherwise gone to mortgage holders and other beneficiaries.
Yesterday’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, California. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office, in connection with the president’s Financial Fraud Enforcement Task Force.
The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.
For more information about the task force, please visit www.StopFraud.gov. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Justice Department Awards $25 Million to Address Sexual Violence on CampusesRead the Press Release
The Justice Department’s Office on Violence Against Women (OVW) today announced 61 grants totaling $25 million to help students who are victims of sexual assault, domestic violence, dating violence and stalking. In fiscal year 2016, OVW is awarding twice as many grants (45) to institutions of higher education compared to last year. Also this year, OVW is awarding 16 grants to organizations that will provide legal assistance to victims on campuses.
The recipients of these competitive awards will work to deliver effective, comprehensive and coordinated strategies that help survivors heal; reduce campus sexual and domestic violence; and improve the institution’s response to these crimes. The awards will make possible a range of services, including specialized training for campus law enforcement, healthcare providers, university housing personnel and others who are often first responders. The Legal Assistance for Victims Program grant recipients will assist students – who generally do not know about legal options and resources – with legal needs associated with these crimes.
OVW encourages colleges and universities to use data from a campus climate survey to determine their institution’s specific needs and create a customized plan to respond. Campus climate surveys identify the nature and scope of the problem by describing student behaviors and perceptions, as well as pointing out opportunities for intervention and prevention. The department developed and validated a free survey that is particularly useful.
“Schools that individualize their response to sexual, dating and domestic violence are better able to meet the unique needs of their student populations, especially underserved groups,” said OVW Principal Deputy Director Bea Hanson, Ph.D. “Coordinated, comprehensive responses allow college communities to develop sustainable strategies to address these crimes.”
Also during September, which is National Campus Safety Awareness Month, OVW has published a series of blog posts on best practices for keeping campuses safe for all.
For more information about campus sexual assault, visit www.changingourcampus.org.
Recipients of Awards under OVW’s Campus Grant Program
Northwest Arkansas Community College; Scripps College (California); Saint Leo University Inc. (Florida); Columbus State University (Georgia); Georgia College and State University, Georgia; Mercy College of Health Sciences (Iowa); Upper Iowa University; Regents of the University of Idaho; Benedictine University (Illinois); Southern Illinois University Edwardsville; Manchester University (Indiana); Grambling State University Student Counseling WRC (Louisiana); Springfield Technical Community College (Massachusetts); Wheaton College (Massachusetts); Loyola University Maryland Inc.; Prince Georges Community College (Maryland); Siena Heights University (Michigan); Winona State University (Minnesota); The Curators of the University of Missouri (Rolla); Coahoma Community College (Mississippi); Jackson State University (Mississippi); North Carolina Agricultural and Technical State University; North Carolina Central University; Doane College (Nebraska); Nebraska Wesleyan University; Saint Anselm College (New Hampshire); Felician University, a New Jersey Nonprofit Corporation; Georgian Court University (New Jersey); College of Mount Saint Vincent (New York) Kent State University (Ohio); The University of Toledo (Ohio); The University of Tulsa (Oklahoma); Western Oregon University; Gettysburg College (Pennsylvania); York College of Pennsylvania; Benedict College (South Carolina); University of South Dakota; Austin College (Texas); Texas Lutheran University; Utah State University; Emory & Henry College (Virginia); University of Mary Washington (Virginia); President and Fellows of Middlebury College (Vermont); Carroll University (Wisconsin); and Fairmont State University (West Virginia).
Recipients of Awards under OVW’s Legal Assistance for Victims Program:Peace Over Violence (California); Pine Tree Legal Assistance (Maine); Casa Myrna Vazquez (Massachusetts); Tubman (Minnesota); Legal Services Eastern Missouri; SAFE Harbor (Montana); Capital District Women’s Bar Association Legal Project (New York); Sanctuary for Families (New York); Legal Aid Society Rochester (New York); Unity House of Troy (New York); Victim Rights Law Center (Massachusetts); Prairie State Legal Services (Illinois); End Domestic Abuse/Wisconsin Coalition; Mid-Minnesota Legal Services; Manhattan Legal Services (New York); and Legal Aid Society of Mid-NY.
* * *
OVW provides leadership in developing the nation’s capacity to reduce violence against women through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing 21 federal grant programs, OVW often undertakes initiatives in response to special needs identified by communities facing acute challenges.
INTERPOL Washington Reinforces Ties with Story CountyRead the Press Release
On September 20, 2016, INTERPOL Washington’s Deputy Director Wayne Salzgaber briefed the Story County, Iowa, Board of Supervisors on current programs with the County Sheriff’s Department. The meeting took place during the Board’s regularly scheduled Business Meeting, chaired by Rick Sanders. Board Members Wayne Clinton and Martin Chitty also attended.
Deputy Director Wayne Salzgaber summarized how the Story County Sheriff’s Office and the State of Iowa support INTERPOL Washington, also known as the U.S. National Central Bureau. Salzgaber said that under Sheriff Paul Fitzgerald, the relationship between INTERPOL Washington and Story County is flourishing. This is exemplified by the county’s participation in, and support of, numerous INTERPOL Washington initiatives.
For example, Story County consistently sends officials to INTERPOL Washington as “secondees” or “detailees.” Under this program, representatives from federal and local law enforcement organizations work at INTERPOL Washington on a temporary basis, during which time they apply investigative techniques from their home agencies to INTERPOL Washington cases. In return, they learn to leverage INTERPOL’s tools at their home agencies when they return.
Earlier this year, Elizabeth Quinn, Story County Deputy Sheriff, spent 6 months in Washington working In the Human Trafficking and Child Protection Division. Currently Micah Andersen, Story County Assistant Jail Administrator, is assigned to the Fugitive and Alien Division at INTERPOL Washington. With partnership a core value of INTERPOL, important assignments like these help INTERPOL Washington grow its global police network by maintaining partnerships with federal and local law enforcement agencies as well as international organizations. Salzgaber thanked the Sheriff and the Board for allowing this relationship to grow.
From his prior position as President of the National Sheriff’s Association and other key leadership positions in NSA and Iowa, Sheriff Fitzgerald also strongly advocates state-wide and nationally for INTERPOL’s State and Local Liaison program. This program establishes an INTERPOL liaison in every state, as well as in some large metropolitan areas. The liaisons are officers in the field who can follow up on leads, locate and identify individuals, and make notifications. According to Salzgaber, “This, the relationship we have with state and locals, is what we value the most . . . because we need to make sure on the federal side that we’re connecting up to our local communities.”
Iowa is also an early adopter, and one of only 12 states participating in, one of INTERPOL Washington’s key tools known as Federation. Federation allows all U.S. law enforcement agencies to query both domestic and INTERPOL indices in a single search. This enables officers to find out in real time whether the subject of an investigation poses a known transnational and or terrorist criminal threat. These combined searches can be conducted from both fixed and mobile platforms, including vehicle-mounted and hand-held devices. Salzgaber said that INTERPOL Washington wants to “make sure that every law enforcement officer is connected.”
INTERPOL Washington presents the Story County Board of Supervisors with a token of appreciation for their continued support. Left to right are: Wayne Clinton, Wayne Salzgaber, Rick Sanders, and Martin Chitty.He ended the discussion with his desire to expand and further strengthen the connection that INTERPOL Washington has with state and local law enforcement agencies.
INTERPOL Washington facilitates the exchange of police information and promotes cooperation and assistance among law enforcement authorities around the world. U.S. law enforcement agencies can gain more information about federation by contacting INTERPOL Washington’s Office of the Chief Information Officer at 202-616-9000 or on-line at Nlets at http://www.nlets.org .
Federal Court Shuts Down Abusive Tax Scheme Involving Improper Deductions for Donating TimesharesRead the Press Release
A federal court in Helena, Montana has permanently barred Montana-based attorney James Tarpey, as well as two companies he founded, including Project Philanthropy Inc., a District of Columbia corporation which does business as Donate for a Cause, and Timeshare Closings Inc., a Colorado corporation which does business as Resort Closings Inc., from promoting an allegedly abusive timeshare donation scheme, the Justice Department announced today. Tarpey and the two companies agreed to the injunction.
According to the complaint, based on false promises of generous tax savings, Tarpey, Donate for a Cause and Timeshare Closings encouraged timeshare owners to donate their unwanted timeshares to Donate for a Cause, a tax-exempt entity organized and operated by Tarpey. The complaint alleges that the customers receive an appraisal that grossly overvalues the donated timeshare rights and customers use that appraisal to claim a large charitable donation deduction, even when the true market value of the timeshare right is a small fraction of the appraised value.
According to the complaint, the timeshare donation scheme was aggressively marketed via the Internet and through national and local media outlets, including ABC 7 News in Los Angeles, Fox 10 News in Phoenix, Arizona, the TODAY Show and Fox 4 News in Kansas City, Missouri.
The orders permanently bar Tarpey, Donate for a Cause and Timeshare Closings from promoting or marketing any arrangement that involves charitable contribution deductions claimed on federal tax returns. The orders also bar Tarpey, Donate for a Cause and Timeshare Closings from preparing, or assisting others in preparing, any property appraisal that will be used in connection with federal taxes. The orders require Tarpey, Donate for a Cause and Timeshare Closings to post a copy of the injunction on websites that they use to advertise timeshare donations, including but not limited to www.donateforacause.org. The orders also require that Donate for a Cause notify all of its customers of the injunction and that Tarpey and Timeshare Closings notify their employees involved with timeshare donations of the injunction.
The United States also sued three individuals alleged to be Tarpey’s associates Ron Broyles of California, Curt Thor of Washington and Suzanne Tarpey of Montana. According to the complaint, these individuals assisted Tarpey in facilitating the timeshare donation scheme. Thor previously consented to an order permanently barring him from preparing timeshare appraisals and giving advice regarding charitable contribution deductions on federal tax returns. The government’s claims against Broyles and Suzanne Tarpey remain pending with the court.
The Internal Revenue Service (IRS) warns taxpayers to be wary of scams that involve claiming inflated charitable contribution deductions and recommends anyone who may have improperly claimed such deductions to consult a tax professional. Guidelines for valuing and deducting property donations to charity can be found in Publication 526 and Publication 561, available on IRS.gov.
Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, thanked Revenue Agent Kate Lopez of the IRS, who conducted the investigation and Trial Attorneys Richard G. Rose, Harris J. Phillips and Gretchen E. Nygaard of the Tax Division, who are litigating this case.
In the past decade, the Tax Division has obtained injunctions against hundreds of tax return preparer and tax fraud promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Department of Justice Awards More Than $49 Million to Combat Human TraffickingRead the Press Release
The Department of Justice today awarded grants totaling more than $49 million to state, local and tribal jurisdictions, law enforcement agencies and victim service providers to combat human trafficking across the United States.
Today’s awards include funding to provide comprehensive and specialized services for human trafficking victims, support task forces that investigate and prosecute human trafficking cases, assist child victims of sex trafficking, and support research designed to improve understanding of the nature of human trafficking crimes and develop best practices to prevent and respond to such crimes. Funding comes out of the Office of Justice Programs’ (OJP’s) Office for Victims of Crime, Bureau of Justice Assistance, Office of Juvenile Justice and Delinquency Prevention and National Institute of Justice, and DOJ’s Office on Violence Against Women.
Human trafficking includes sex and labor trafficking of foreign nationals and U.S. citizens of all ages.
“The true measure of our strength as a society is how we treat the most vulnerable among us,” said Attorney General Loretta E. Lynch. “That is why the Department of Justice is committed to fighting human trafficking, a heinous crime that preys on the young and the defenseless. These critical grants will fund efforts across the country to deepen our understanding of this appalling practice, to bring traffickers to justice, and to support survivors as they heal and begin their lives anew.”
This year’s announcement includes awards for $15.8 million to 22 law enforcement agencies and victim service providers to operate multidisciplinary task forces, enabling them to conduct criminal investigations, prosecutions, prevention and community education initiatives to combat human trafficking as well as to provide comprehensive services to trafficking victims. Within each task force location, one award supports the lead law enforcement agency and another award supports the lead victim service provider. The grantees will work collaboratively with other members of the task force, including the U.S. Attorney’s Office; the local prosecutor’s office; federal, state and local law enforcement agencies; and community and system-based service providers.
More than $20 million was awarded to 34 victim service providers. Some providers received grants to provide comprehensive services to any human trafficking victim identified within a target geographic region. Other providers received grants to offer specialized services for victims of human trafficking, including culturally, linguistically and developmentally-appropriate and trauma-informed services for underserved victims.
Two states will receive a total of $4.75 million for improving outcomes for child and youth trafficking victims, while three organizations have been awarded a total of $1.2 million to increase services for urban American Indian and Alaska Native victims of sex trafficking. Two individuals have been awarded grants to provide the Office for Victims of Crime with in-house subject matter expertise on the topics of human trafficking task forces and survivor-informed services. In addition, $2.9 million was awarded for training and technical assistance, and more than $2.6 million was awarded to six nonprofit and faith-based organizations to provide mentoring and other direct services to youth victimized by or at risk of domestic sex trafficking and commercial sexual exploitation. A $300,000 grant will fund training and assistance for Office on Violence Against Women grantees to help them plug gaps in services for youth victims of sex trafficking.
Finally, more than $1.7 million supports four research and evaluation projects designed to address gaps in knowledge about human trafficking. Funds will be used to evaluate investigation and prosecution strategies, identify effective approaches for serving human trafficking victims, measure the prevalence of trafficking among homeless and runaway youth, and assess human trafficking in Indian Country.
Twenty five states and the District of Columbia were impacted by these awards: Alaska, Arizona, California, Connecticut, Florida, Georgia, Illinois, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, Nevada, New York, Pennsylvania, South Carolina, Texas, Virginia, Washington, and Wisconsin.
Chemoil Agrees to Pay Civil Penalty of $27 Million and to Retire a Total of More Than $71 Million in Credits from Renewable Fuels Market Under Settlement with United StatesRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) and today announced a settlement with Chemoil Corporation that requires the company to retire 65 million renewable fuel credits to resolve alleged violations of the Renewable Fuel Standard (RFS) program. The current market value of the credits -- along with an additional 7.7 million renewable identification numbers (RINs) already retired by Chemoil in the lead up to this settlement -- is more than $71 million. Chemoil will also pay a $27 million civil penalty under the settlement, the largest in the history of the EPA’s fuel programs.
The Department of Justice and EPA allege that Chemoil exported at least 48.5 million gallons of biodiesel from 2011 to 2013, but failed to retire the more than 72 million RINs that were generated for the exported fuel. RINs are credits created when a company produces or imports renewable fuel and can be traded or sold to refiners and fuel importers or exporters to help them comply with the RFS program requirements.
The RFS program requires exporters to retire RINs for renewable fuel like biodiesel, because the fuel exported is no longer available for blending into United States’ fossil fuel supply and, for that reason, cannot be used to meet the renewable fuel volume mandate established by Congress. If exporters fail to retire the appropriate number and type of RINs associated with the exported fuel, as the United States alleges happened here, it artificially inflates the volume of renewable fuel available for blending in this country and the number of RINs available to meet the renewable fuel volume mandate. Ensuring exporters comply with the regulations for RIN retirement is critical to the proper functioning and integrity of the RFS program.
“Congress adopted the Renewable Fuel Standards program to achieve significant greenhouse gas emissions reductions, reduce the nation’s dependence on foreign oil, and grow our domestic renewable energy industry,” said Assistant Attorney John C. Cruden for the Department of Justice Environment and Natural Resources Division. “By ensuring a level playing field within the industry through vigorous compliance monitoring and enforcement, we help ensure that these important Congressional goals are met.”
“This settlement delivers on the greenhouse gas emissions reduction goals that Congress envisioned for the Renewable Fuel Standard,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “It’s vital that companies retire renewable fuel credits when exporting fuel abroad. Upholding this requirement is a key way EPA is working to maintain program integrity and a level playing field for companies that follow the law.”
EPA discovered the alleged violations as a result of tips from RFS program participants.
EPA is responsible for developing and implementing regulations to ensure that transportation fuel sold in the United States contains a minimum volume of renewable fuel. The RFS program - created under the Energy Policy Act of 2005 - was developed in collaboration with refiners, renewable fuel producers and many other stakeholders. It was expanded and strengthened under the Energy Independence and Security Act of 2007, which was designed to encourage the blending of renewable fuels into our nation’s motor vehicle fuel supply to reduce the nation’s dependence on foreign oil, help grow the nation’s renewable energy industry and achieve greenhouse gas reductions.
Chemoil is based in San Francisco, California, and sells marine, aviation, diesel, renewable fuels and residual oil products.
The proposed settlement, lodged today in the U.S. District Court for the Northern District of California, is subject to a 30-day public comment period and final court approval.
For more information on the settlement and for information on how to submit a comment, visit: https://www.epa.gov/enforcement/chemoil-corporation-renewable-fuel-standard-settlement.
Branch Banking & Trust Company Agrees to Pay $83 Million to Resolve Alleged False Claims Act Liability Arising from FHA-Insured Mortgage LendingRead the Press Release
Branch Banking & Trust Company (BB&T) has agreed to pay the United States $83 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today. BB&T is headquartered in Winston-Salem, North Carolina.
“The FHA program depends on Direct Endorsement Lenders endorsing only eligible loans for FHA mortgage insurance, and complying with HUD’s quality control requirements,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Lenders like BB&T that participate in the FHA program must make adherence to the FHA program rules a priority. The Department has and will continue to hold accountable those lenders that prioritize profits over program compliance.”
“While profiting from the FHA program, BB&T exposed the taxpayers to losses by failing to comply with HUD guidelines, and then took the additional step of falsely certifying that it had complied with such guidelines,” said U.S. Attorney John Horn of the Northern District of Georgia. “This settlement recovers substantial losses caused by BB&T’s decision to place its own profits above its commitment to adhere to HUD underwriting and quality control requirements.”
Since at least January 2006, BB&T has participated as a Direct Endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan before it is endorsed for FHA insurance for compliance with FHA’s credit and eligibility standards, but instead relies on the efforts of the DEL to verify compliance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.
The settlement announced today resolves allegations that BB&T failed to comply with certain FHA origination, underwriting and quality control requirements. As part of the settlement, BB&T admitted to the following facts: Between Jan. 1, 2006 and Sept. 30, 2014, it certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements and did not adhere to FHA’s quality control requirements. BB&T significantly increased its loan volume between 2006 and 2009—more than doubling all loan originations, while increasing the number of FHA insured loans six fold. This increase in volume was accompanied by an increase in the number of loans internally rated “Serious-Marketability” by BB&T’s quality control department —the most significant quality control defect rating and a defect that rendered a loan ineligible for FHA insurance. Between 2007 and 2011, the percentage of loans underwritten by BB&T each year that were rated Serious-Marketability by its quality control department always exceeded 30 percent, and exceeded as much as 50 percent in 2010 and 2011. BB&T nevertheless endorsed many of these loans for FHA insurance and, if they defaulted, sought payment from HUD for the insured loans.
The monthly reviews and reports that BB&T’s quality control department shared with management alerted BB&T to deficiencies in many of its FHA loans. A 2010 internal memorandum at BB&T stated that “increased volume of FHA requests and changes to regulatory requirements have resulted in origination, processing and underwriting errors. Some employees are not applying current and accurate FHA guidelines.” A proposal to improve BB&T’s underwriting of FHA loans with additional training as well as a testing and certification process for underwriters was prepared in 2010, but neither recommendation was implemented until after 2014.
Additionally, between 2006 and 2014, BB&T’s quality control process did not satisfy certain FHA requirements. Although loan volume more than doubled from 2006 to 2009, the number of quality control employees remained the same. The quality control department requested additional employees in 2009, yet new employees were not added until 2013. Because BB&T’s quality control department did not have adequate staff, it instituted a cap on the number of loans it reviewed. As a result, between 2009 and 2014, the quality control department did not always review the number of loans necessary to comply with HUD’s loan review sampling requirements. Additionally, BB&T did not perform reviews of its lender branch offices, as required by HUD, before beginning the reviews again in late 2014.
Finally, since at least 2006, HUD has required self-reporting. However, despite internal ratings showing that 30 percent or more of the loans underwritten by BB&T between 2007 and 2011 had Serious-Marketability findings, and were thus ineligible for FHA insurance, BB&T did not self-report any loans containing material underwriting defects until 2013.
As a result of BB&T’s conduct and omissions, HUD insured loans endorsed by BB&T that were not eligible for FHA mortgage insurance under the DEL program, and that HUD would not otherwise have insured. HUD subsequently incurred substantial losses when it paid insurance claims on those loans.
“Lenders are required to apply FHA’s standards to each mortgage loan we insure and to honestly certify to us that they’ve done so,” said Associate General Counsel Dane M. Narode for HUD’s Program Enforcement. “Today’s settlement reminds all lenders that sound underwriting is the bedrock of a healthy housing market and the financial futures of homeowners we support.”
“Today’s settlement agreement resolves allegations that BB&T, entrusted by American taxpayers to comply with FHA regulations, failed to conform with certain FHA origination, underwriting and quality control requirements,” said Inspector General David A. Montoya for HUD. “This settlement demonstrates a continued commitment to address the failures and halt the business practices that potentially harm the FHA program and its participants.”
The settlement was the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Georgia. The claims asserted against BB&T are allegations only, and there has been no determination of liability.
Vibra Healthcare to Pay $32.7 Million to Resolve Claims for Medically Unnecessary ServicesRead the Press Release
Vibra Healthcare LLC (Vibra), a national hospital chain headquartered in Mechanicsburg, Pennsylvania, has agreed to $32.7 million, plus interest, to resolve claims that Vibra violated the False Claims Act by billing Medicare for medically unnecessary services, the Department of Justice announced today.
“Medicare beneficiaries are entitled to receive care that is determined by their clinical needs and not the financial interests of healthcare providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “All providers of taxpayer-funded federal healthcare services, whether contractors or direct billers, will be held accountable when their actions cause false claims for medically unnecessary services to be submitted.”
Vibra operates approximately 36 freestanding long term care hospitals (LTCHs) and inpatient rehabilitation facilities (IRFs) in 18 states. LTCHs provide inpatient hospital services for patients whose medically complex conditions require long hospital stays and programs of care. IRFs are intended for patients needing rehabilitative services that require hospital-level care. The government alleged that between 2006 and 2013, Vibra admitted numerous patients to five of its LTCHs and to one of its IRFs who did not demonstrate signs or symptoms that would qualify them for admission. Moreover, Vibra allegedly extended the stays of its LTCH patients without regard to medical necessity, qualification and/or quality of care. In some instances, Vibra allegedly ignored the recommendations of its own clinicians, who deemed these patients ready for discharge.
“Pursuing and recovering fraudulent billing for unnecessary services is a priority of my office,” stated U.S. Attorney John E. Kuhn Jr. for the Western District of Kentucky. “This significant case against Vibra Healthcare and today’s settlement agreement is but one example of the vigorous work against healthcare fraud taking place in the Western District of Kentucky and across the nation.”
As part of the settlement, Vibra also agreed to enter into a chain-wide corporate integrity agreement with the Inspector General of the U.S. Department of Health and Human Services.
“Medical necessity is fundamental if health providers wish to claim taxpayer funds for medical care,” said Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “OIG is committed to protecting precious Medicare dollars and ensuring that beneficiaries receive quality, necessary long term care.”
Part of the allegations resolved by this settlement were originally filed under the qui tam or whistleblower provisions of the False Claims Act by Sylvia Daniel, a former health information coder at Vibra Hospital of Southeastern Michigan. Daniel filed her suit in the Southern District of Texas, where one of Vibra’s LTCHs was located. Under the False Claims Act, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. Daniel will receive at least $4 million.
This settlement illustrates the government’s emphasis on combating healthcare fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team 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 $30.7 billion through False Claims Act cases, with more than $18.5 billion of that amount recovered in cases involving fraud against federal healthcare programs.
This matter was handled by the Civil Division’s Commercial Litigation Branch; the U.S. Attorneys’ Offices for the Southern District of Texas in Houston and for the Western District of Kentucky; and the HHS-OIG. The qui tam case is captioned United States ex rel. Daniel v. Vibra Healthcare, LLC, Civil Action No. 10-5099 (S.D. Tex.).
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Sears Home Improvement Products Inc. to Improve Public Health Protections from Lead Pollution During Home RenovationsRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Sears Home Improvement Products Inc. that resolves alleged violations of the federal Lead Renovation, Repair and Painting (RRP) Rule for work performed by Sears’ contractors during home renovation projects across the country. Under the settlement, Sears will implement a comprehensive, corporate-wide program to ensure that the contractors it hires to perform work are properly certified and follow required procedures to prevent exposure to lead dust from home renovation activities. Sears will also pay a $400,000 civil penalty.
“This settlement will help prevent children and workers’ exposure to lead during home renovations in communities across the United States by ensuring that Sears’ contractors are fully aware of their obligations under lead safety regulations,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “Sears is required to implement system wide changes across the corporation which will provide additional protection for consumers and bring the company into compliance with the law.”
“Today’s settlement will have a widespread impact across the home improvement industry, significantly reducing exposure to lead paint dust among children and vulnerable citizens,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “In order to contract with Sears, a worker must follow lead safe practices. Contractors will carry this certification to every job they do. EPA expects all renovation companies to ensure their contractors follow these critical laws that protect public health.”
EPA discovered the alleged violations through a review of Sears’ records from projects performed by the company’s renovation contractors at numerous projects in cities across California and in Georgia, Minnesota, Nevada, New York and Wisconsin.
The government also alleged that Sears failed to establish, retain, or provide compliance documentation showing that specific contractors had been certified by EPA, had been properly trained, had used lead-safe work practices, or had performed required post-renovation cleaning.
Under the settlement, Sears will implement a company-wide program to ensure that the contractors it hires to perform work for its customers comply with the RRP Rule during renovations of any child-occupied facilities, such as day-care centers and pre-schools and any housing that was built before 1978. For these projects, Sears must contract with only EPA-certified and state-certified firms and renovators, ensure they maintain certification and ensure they use lead safe work practices checklists during renovations.
Sears will also add a link on its website to EPA’s content on lead-safe work practices and use a company-wide system to actively track the RRP firm and renovator certifications of its contractors. In addition, Sears must suspend any contractor that is not operating in compliance with the RRP Rule, investigate all reports of potential noncompliance and ensure that any violations are corrected and reported to EPA.
EPA reached a similar settlement with home improvement retailer Lowe’s Home Centers in 2014 requiring the company to implement a comprehensive, corporate-wide compliance program at its over 1,700 stores nationwide to ensure that the contractors it hires to perform work minimize lead dust from home renovation activities.
The RRP Rule, which is a part of the federal Toxic Substances Control Act, is intended to ensure that owners and occupants of housing built before 1978, as well as any child-occupied facilities, receive information on lead-based paint hazards before renovations begin, that individuals performing such renovations are properly trained and certified by EPA and follow specific work practices to reduce the potential for lead-based paint exposure. Home improvement companies such as Sears that contract with renovators to perform renovation work for their customers must ensure that those contractors comply with all of the requirements of the RRP Rule.
Lead-based paint was banned in 1978 but still remains in many homes and apartments across the country. Lead dust hazards can occur when lead paint deteriorates or is disrupted during home renovation and remodeling activities. Lead exposure can cause a range of health problems, from behavioral disorders and learning disabilities to seizures and death, putting young children at the greatest risk because their nervous systems are still developing. A blood lead test is the only way to determine if a child has a high lead level. Parents who think their child has been in contact with lead dust should contact their child's health care provider.
Renovation firms that are certified under EPA’s RRP Rule are encouraged to display EPA’s “Lead-Safe” logo on worker’s uniforms, signs, websites and other material, as appropriate. Consumers can protect themselves by looking for the logo before hiring a renovation firm. Consumers can learn more about the RRP Rule and hiring a certified firm by calling the National Lead Information Center at 1 (800) 424-LEAD or visiting www.epa.gov/lead.
Sears Home Improvement Products is part of the Sears Home Services division, within Sears Holdings Corporation. The Home Services division makes over 12 million service and installation calls annually through a network of 6,700 technicians and Sears’ 705 retail stores in the United States. Sears Home Improvement Products is headquartered in Longwood, Florida, does business in 45 states, and maintains 58 district offices.
The consent decree was lodged in the U.S. District Court for the Northern District Court of Illinois. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. To view the consent decree: www.justice.gov/enrd/Consent_Decrees.html.
More information about EPA’s enforcement of the RRP Rule: www.epa.gov/lead/enforcing-lead-laws-and-regulations
Violations of the lead-based paint RRP Rule regulations can be reported to EPA: www.epa.gov/enforcement/report-environmental-violations
New York City Resident Pleads Guilty to Using Sham Foreign Entity and Secret Foreign Accounts in Switzerland and Israel to Evade TaxesRead the Press Release
Used Secret Foreign Accounts to Hide over $7 Million in Funds and Evade Taxes
A New York City man pleaded guilty today to a criminal information charging him with tax evasion for tax years 2003 through 2005 and 2007 through 2010, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Robert L. Capers of the Eastern District of New York.
“Mr. Hager concealed over $7.3 million in undeclared foreign accounts in Switzerland and Israel and used a sham British Virgin Island entity in order to evade over $650,000 in U.S. taxes,” said Principal Deputy Assistant Attorney General Ciraolo. “As this case demonstrates, the Department and the Internal Revenue Service (IRS), together with our global partners, are successfully working on a daily basis to locate such undeclared accounts, identify those responsible and hold them accountable.”
According to information presented in court, between 1987 through 2011, Markus Hager, 68, utilized a series of undeclared foreign financial accounts to evade his individual income taxes by concealing assets and income from the IRS in those accounts. Between 1987 and 2008, Hager maintained several undeclared accounts at UBS, including two numbered accounts and an account held in the name of Contactus Partnership Associated S.A. (Contactus), a sham British Virgin Islands entity. By the close of 2004, the value of Hager’s undeclared accounts at UBS exceeded $7.3 million.
Hager closed the UBS accounts in 2008 and transferred the assets to a newly opened account at Clariden Leu, which he controlled and held in the name of Contactus. Shortly thereafter, Hager closed the Contactus account at Clariden Leu and transferred the assets to a newly opened account held in the name of the same sham entity at a different Swiss bank. Hager caused that Swiss bank to falsely record Hager’s Belgian cousin as the owner of the assets in the Contactus account. Approximately six months later, Hager closed the Contactus account at the Swiss bank and transferred the assets to an account at a bank in Israel that Hager caused to be opened in the name of a different Belgian cousin.
From 2005 to 2011, Hager also controlled an undeclared account at Bank Leumi in Israel, which he falsely held under the name of a relative who was not a U.S. person and who resided outside the United States. In February 2010, after obtaining an Israeli Identity Card, Hager opened an account in his own name at Bank Leumi in Israel but falsely reported that he lived in the United Kingdom and signed a document, under the penalties of perjury, on which he falsely claimed that he was not a U.S. citizen.
According to the information filed, Hager repatriated funds from his undeclared foreign financial accounts by having an attorney draft a sham loan agreement between himself and Contactus and wiring funds from some of his undeclared foreign financial accounts into his attorney’s escrow account.
According to the information filed, Hager filed false federal and New York State income tax returns on which he failed to report the income from his foreign financial accounts and failed to pay tax on that income. According to the information, Hager evaded approximately $652,580 in federal taxes for tax years 2003 through 2005 and 2007 through 2010. Hager also failed to report his ownership and control of his foreign financial accounts to the Department of the Treasury on a Report of Foreign Bank and Financial Account even though an accounting firm had informed Hager of his obligation to do so and advised him of the civil and criminal penalties he could suffer for the failure to do so.
“In pleading guilty today, Markus Hager became another example of an individual who attempted to conceal the true source of his money and was caught,” said Chief Richard Weber of IRS-Criminal Investigation (IRS-CI). “IRS-CI will continue to take every step necessary to ferret out those who attempt to avoid their reporting obligations under the law.”
Sentencing has been set for Jan. 4, 2017. Hager faces a statutory maximum sentence of five years in prison, as well as a term of supervised release and monetary penalties. According to the plea agreement, Hager agreed to pay restitution to the IRS.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Capers commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Mark F. Daly and Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney Erik Paulsen of the Eastern District of New York, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.