District Not Recorded

Defendant Deceived Investors, Diverted Funds and Dodged Tax Obligations

A Watertown, New York, food and restaurant entrepreneur and franchisor pleaded guilty today to one count of wire fraud and one count of tax evasion announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Richard Hartunian for the Northern District of New York.

According to the criminal information and plea agreement filed with the U.S. District Court in Utica, New York, between 2005 and 2015, Christopher Swartz, 46, engaged in a promissory note scheme to defraud lenders and investors, as well as a scheme to evade taxes and obstruct the Internal Revenue Service (IRS). 

“Mr. Swartz used his business enterprises to steal from lenders, investors, and the United States, hiding behind an elaborate web of entities and financial transactions,” said Principal Deputy Assistant Attorney General Ciraolo.  “This case serves as clear notice that no one is above the law, and those individuals who seek to evade their tax obligations will face prosecution and incarceration, regardless of the complexity of their schemes or economic status.” 

“The defendant’s wide-ranging, persistent, and lengthy fraud and tax evasion schemes cost investors and the IRS millions of dollars,” said U.S. Attorney Hartunian.  “My office is pleased to be part of the efforts by the Tax Division and IRS-Criminal Investigation to hold him accountable for his brazen conduct.”     

“As highly trained and experienced financial investigators, IRS special agents are particularly adept at tracing the flow of funds and uncovering hidden assets,” said Special Agent in Charge Shantelle P. Kitchen of IRS Criminal Investigation, New York Field Office.  “Mr. Swartz’s conviction serves as warning to anyone who schemes to divert money from a business in order to conceal income and evade taxes.”

Swartz, using his multiple interests in various food and restaurant businesses, raised money by fraudulently inducing lenders with the promise of repayment at high interest rates and ownership interests in his companies.  Swartz misappropriated and diverted funds received and when lenders and investors sought the return of their funds, Swartz attempted to lull them with false and fraudulent excuses, assurances, and partial payments, including payments by checks that he knew would bounce.  Swartz also concealed his assets and income to avoid seizure and collection by lenders, investors, and judgment creditors, thereby attempting to prevent recovery of their funds.

As one part of the scheme, in 2009, Swartz used a promissory note and the offer of an equity interest in the Jreck Subs franchise to induce an investor group from New York City to provide $1.5 million in funds, including funds for the construction of new stores and the growth of the chain.  Swartz misappropriated and diverted a substantial portion of the funds.  Swartz then solicited additional loans from this same group, fraudulently inducing them with a series of additional promissory notes, which he failed to honor while misappropriating funds.  Swartz purported to secure some of the notes with fictitious and forged rebate agreements.

Swartz admitted that between 2005 and 2015, he also engaged in a 10-year tax evasion scheme, filing false tax returns that understated his personal income.  Swartz diverted money from business accounts and disguised these diversions in the company records as, among other things, loans and business expenses.  He made extensive use of cash to diminish the traceability of funds and concealed his ownership of various assets using multiple entities and nominees.  Swartz also falsified partnership tax returns and attempted to impede the IRS’s ability to collect employment taxes.

U.S. District Judge David N. Hurd scheduled sentencing for Jan. 19, 2017.  Swartz faces a statutory maximum sentence of 20 years in prison for his conviction on the wire fraud count, and five years in prison on the tax evasion count, as well as a period of supervised release and monetary penalties.  As a condition of the plea agreement, Swartz agreed to an order of restitution payable to any individuals and entities determined to be, at the time of sentencing, victims of his schemes. 

The district court entered a preliminary order of forfeiture of assets, including forfeiture of Swartz’s interests in the Jreck Subs franchisor corporate business, which receives royalty payments from store owners based on a percentage of store sales.  Under current law, if a final forfeiture order is entered, criminally forfeited assets may be used as a source of funds to pay restitution to victims.  According to court documents, the number of victims may be in excess of 130.    

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Hartunian thanked special agents of IRS-Criminal Investigation and the FBI, and an IRS revenue agent, who conducted the investigation, as well as Assistant Chiefs John N. Kane, Jr. and Andrew Kameros, and Trial Attorney Abigail Burger Chingos 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.

The Justice Department filed a proposed consent decree today with 30 Hop restaurant and bar in Coralville, Iowa, resolving claims that the establishment violated the new construction requirements of Title III of the Americans with Disabilities Act (ADA).

The ADA requires newly constructed facilities to comply with the ADA Standards for Accessible Design.  30 Hop, which opened for business in 2014, is a newly constructed multi-story restaurant and bar with a rooftop patio.  The department’s complaint alleges that 30 Hop does not provide an accessible route to the rooftop patio or lower level, has an inaccessible entrance, has no accessible dining tables and has inaccessible bathrooms.

“All newly constructed restaurants and bars must be readily accessible to and usable by individuals with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “We commend the owners of 30 Hop for cooperating with the Justice Department and for taking swift action to remedy the alleged ADA violations.”

Under the consent decree, which is subject to court approval, the owners of 30 Hop will, among other things, install an elevator between the ground floor and rooftop patio, install a platform lift between the ground floor and the lower level, provide accessible dining surfaces in each area of the restaurant and bar, provide closed risers on the staircase to the rooftop patio, increase the maneuvering clearance at the entrance door, bring the bathrooms into compliance with the ADA requirements for newly constructed facilities, pay a $17,500 civil penalty and pay $3,500 to compensate an individual with a disability who is not able to access the rooftop patio.

The agreement will last for two years.  To learn more about the ADA, call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or visit www.ada.gov.

30 Hop Consent Decree

Deputy Attorney General Sally Q. Yates today announced awards totaling more than $10.8 million to assist 162 state, tribal and local government agencies to improve evidence-based substance abuse treatment programs for incarcerated inmates, as well as to prepare justice-involved individuals for reintegration into local communities. The grants were announced during a visit by Deputy Attorney General Yates to a Bureau of Prisons Community Treatment Services Program as part of Prescription Opioid and Heroin Epidemic Awareness Week.

“Cooperation and community partnerships like the ones supported by the Residential Substance Abuse Treatment Program help incarcerated individuals transitioning back to the community receive the support they need to break the cycle of addiction and have the tools they need for successful reentry” said Deputy Attorney General Yates.  “These grants are a critical part of the department’s ongoing work to combat the prescription opioid and heroin epidemic and provide treatment to those in need.”

The grants are funded under the Office of Justice Programs Bureau of Justice Assistance’s Residential Substance Abuse Treatment for State Prisoners Program.  This annual award provides for the development and implementation of treatment programs and aftercare services in correctional and detention facilities in all 50 states, the District of Columbia and five U.S. territories.

“Treating justice-involved individuals for substance abuse must extend beyond incarceration treatment programs to be successful,” said Assistant Attorney General Karol V. Mason. “These grants reward those state, tribal and local agencies that seek to leverage community partnerships and interagency cooperation as well to help these individuals reenter society.”

The program’s framework allows award recipients to implement three types of programs: residential, jail-based and aftercare. Awardees are required to coordinate treatment programs with state correctional professionals and alcohol and drug abuse agencies to receive grant funding. They are also encouraged to partner with community-based organizations to help continue care as justice-involved individuals reenter local communities.

An additional $485,000 was awarded to Advocates for Human Potential, Inc., to provide training and technical assistance in the development and implementation of substance abuse treatment programs.

For a complete monetary and geographical breakdown of the grants awarded under this program, visit https://www.bja.gov/Funding/16RSATAllocations.pdf. 

Attorney General Lynch will Travel to Lexington, Kentucky, as Part of the Justice Department’s Awareness Campaign to Address the Rising Public Health Crisis of Drug Addiction

The Obama Administration has designated the week of Sept. 18-23, 2016, as Prescription Opioid and Heroin Epidemic Awareness Week.  As part of this effort, the Department of Justice is announcing a “week of action” to raise awareness about the rising public health crisis caused by drug overdoses.  Senior Department of Justice officials, members of the President’s Cabinet and other federal agencies will hold events focused on the work being done to address the national prescription opioid and heroin epidemic.

Attorney General Loretta E. Lynch will travel to Lexington, Kentucky, tomorrow, TUESDAY, SEPTEMBER 20, 2016, to hold a youth town hall at a local high school; meet with parents who have lost their children due to overdoses and now work with the Heroin Education Action Team (H.E.A.T.); and deliver a policy speech regarding the actions and resources the Justice Department is bringing to bear on this issue.  

“The heroin and opioid epidemic is one of the most urgent law enforcement and public health challenges facing our country,” said Attorney General Lynch.  “Through Prescription Opioid and Heroin Epidemic Awareness Week, the Department of Justice seeks to raise awareness and prevent new victims from succumbing to addiction; to highlight the department’s ongoing commitment to holding accountable traffickers and others responsible for this epidemic; and to help provide treatment to those grappling with addiction.  To be successful in this important endeavor, we need the help of all our federal, tribal, state and local partners.  In the months ahead, we will continue working to erase this scourge from our communities and to ensure a brighter future for all Americans.”

Prescription Opioid and Heroin Epidemic Awareness Week will reinforce the Justice Department’s three-fold approach to the opioid and heroin epidemic: prevent further tragedies by raising awareness regarding the Opioid and Heroin epidemic; focus on enforcement priorities and highlight best practices; and deploy resources for treatment.  As part of the initiative, over 70 U.S. Attorneys around the country have already committed to doing over 160 different events around the country and over 90 events are planned at Bureau of Prison (BOP) facilities.

As part of the week of action, the Attorney General is expected to announce a new strategy memo directed to the department that focuses on the three-fold prevention, enforcement and treatment approach to combatting the opioid epidemic.  The President issued a proclamation designating Sept. 18-23, 2016, as Prescription Opioid and Heroin Epidemic Awareness Week on Friday, Sept. 16. 

ATTORNEY GENERAL LYNCH HOSTS TOWN HALL AT MADISON CENTRAL HIGH SCHOOL

WHO:           Attorney General Loretta E. Lynch

U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky

WHEN:         TUESDAY, SEPTEMBER 20, 2016

9:15 a.m. EDT

WHERE:       Madison Central High School

Auditorium

705 North 2nd St

Richmond, KY 40475

OPEN PRESS (Camera Preset: 7:30 a.m. EDT for an 8:00 a.m. EDT K9 sweep; Media Access: 8:30 a.m. EDT; Final Access: 9:00 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.  Members of the media must RSVP for the above events to [email protected] by Monday, Sept. 19, at 5:00 p.m. EDT.  Space is limited and not guaranteed.  Press inquiries regarding logistics should be directed to [email protected]. 

MEDIA AVAILABILITY

WHO:           Attorney General Loretta E. Lynch

U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky

WHEN:         TUESDAY, SEPTEMBER 20, 2016

10:30 a.m. EDT

WHERE:       Madison Central High School

Lecture Lab

705 North 2nd Street

Richmond, KY 40475

OPEN PRESS (Camera Preset: 7:30 a.m. EDT for an 8:00 a.m. EDT K9 sweep; Media Access: 9:30 a.m. EDT; Final Access: 10:00 a.m. EDT)

NOTE: All cameras planning to attend the media availability must be preset in the auditorium prior to the Town Hall as there will be only one K9 sweep.  All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials.  Members of the media must RSVP for the above events to [email protected] by Monday, Sept. 19, at 5:00 p.m. EDT.  Space is limited and not guaranteed.  Press inquiries regarding logistics should be directed to [email protected]. 

ATTORNEY GENERAL LYNCH DELIVERS REMARKS AT UNIVERSITY OF KENTUCKY

WHO:           Attorney General Loretta E. Lynch

WHEN:         TUESDAY, SEPTEMBER 20, 2016

3:45 p.m. EDT

WHERE:       University of Kentucky

BioPharm Complex

Lecture Hall 124

789 S. Limestone St

Lexington, KY 40508

OPEN PRESS (Camera Preset: 2:00 p.m. EDT for a 2:30 p.m. EDT K9 sweep; Media Access: 3:00 p.m. EDT; Final Access: 3:30 p.m. EDT)

NOTE:  Media parking is available in the UK HealthCare Parking Garage, 140 Transcript Avenue, located south of the Pharmacy Building (789 South Limestone St).  All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials.  Members of the media must RSVP for the above events to [email protected] by Monday, Sept. 19, at 5:00 p.m. EDT.  Space is limited and not guaranteed.  Press inquiries regarding logistics should be directed to [email protected].

Senior Administration, DOJ Officials Events for National Prescription Opioid and Heroin Epidemic Awareness Week of Action:

Monday, Sept. 19, 2016

Deputy Attorney General Sally Q. Yates will visit a BOP Community Treatment Services program at the Renaissance Medical Group in Washington, D.C.  The Community Treatment Program is the final stage of BOP’s Residential Drug Abuse Program, as the inmates completing their sentences transition through Residential Reentry Centers.  This visit will highlight BOP’s efforts to provide treatment to inmates with substance abuse issues, particularly prescription and other forms of opioids.

Monday, Sept. 19, 2016

Acting Bureau of Prisons Director Thomas Kane will meet participants in a Residential Drug Abuse Program (RDAP) at the Federal Correctional Institution in Cumberland, Maryland.  This event is in conjunction with other special programming created during the administration’s week of action within the 90 RDAPs around the country to help raise awareness about the severity of heroin and prescription opioid abuse.  Activities will also include presentations by mental health service providers, inmate panel discussions and observing moments of silence during community meetings for lives lost to opioid addiction.

Tuesday, Sept. 20, 2016

Attorney General Lynch will travel to Lexington, Kentucky to hold a student town hall at a high school, meet with H.E.A.T. parents that have lost their children to heroin abuse, and then close the day at the University of Kentucky for a policy speech on how the department is addressing the issue through prevention, enforcement and treatment.

Tuesday, Sept. 20, 2016

Organized Crime Drug Enforcement Task Forces Director Bruce Ohr will travel to New Mexico to hold a meeting with the leaders of three pueblo communities in the Espanola Valley, which has the highest heroin overdose death rate in the country on a per capita basis.  He will also do additional outreach meetings with tribal leaders to discuss DOJ assistance to address the heroin/opioid crisis in Indian Country and best practices for first responders to carry naloxone.

Tuesday, Sept. 20, 2016

Secretary of the Veteran’s Administration Robert McDonald, Principal Associate Attorney General Bill Baer, and Office of National Drug Control Policy Director Michael Botticelli will participate in a roundtable discussion on the administration's efforts to assist our nation's veterans suffering from opioid abuse. 

Wednesday, Sept. 21, 2016

Attorney General Lynch will deliver welcoming remarks prior to a screening of the “Chasing the Dragon” documentary, a film created jointly by the FBI and the Drug Enforcement Administration (DEA).  FBI Director James Comey and DEA Acting Administrator Chuck Rosenberg will also participate in a question and answer session.

Thursday, Sept. 22, 2016
Office of Community Oriented Policing Services (COPS Office) Director Ron Davis will participate in a joint event at the Indiana State Police headquarters to announce grant funding to support law enforcement efforts to combat the distribution and trafficking of heroin, methamphetamine and other harmful opioids.  The COPS Office will also release a new report, “Building Successful Partnerships Between Law Enforcement and Public Health Officials to Address Opioid Abuse” to serve as a resource to better assist law enforcement strategies in addressing the complex challenges posed by opioid overdoses.  

A North Carolina businessman pleaded guilty today to one count of failing to pay over employment taxes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division. 

According to documents filed with the court, Paul Harvey Boone, 54, operated Boone Audio Inc. in Burlington, North Carolina, since 2004.  For much of 2008 through 2011, Boone used Boone Audio to pay thousands of dollars in personal expenditures even though he did not pay over the employment taxes withheld from his employees’ paychecks.  Boone also failed to file personal income tax returns and pay income tax for tax years 2008 through 2011.  

The sentencing hearing is set for Jan. 19, 2017.  Pursuant to the plea agreement, Boone faces a potential statutory maximum sentence of five years in prison, as well as a period of supervised release and monetary penalties.

Principal Deputy Assistant Attorney General Ciraolo commended special agents of Internal Revenue Service’s Criminal Investigation, who investigated the case and Trial Attorneys Lauren Castaldi and Nathan 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 Middle 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.

A former tax return preparer and resident of New Orleans, Louisiana was sentenced today to 36 months in prison, announced Principal Deputy Assistant Attorney General Caroline Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana. 

According to court-filed documents, Donald Stewart, 60, previously pleaded guilty to one count of theft of public funds and one count of aggravated identity theft. From approximately 2001 through 2008, Stewart acted as a return preparer under the business names Stewart’s Tax Service and Stewart LTD, before the Internal Revenue Service (IRS) suspended his Electronic Filing Information Number.  From January 2011 through February 2012, Stewart admitted causing federal tax refunds in the names of others to be electronically deposited into bank accounts under his control.  Stewart also admitted to cashing or depositing U.S. Treasury checks made payable to others, which represented federal income tax refunds totaling approximately $539,393, at a bank in the New Orleans area.  In addition, Stewart obtained and used the means of identification of another individual, including their social security number, during and in relation to wire fraud, when he filed a false tax return using another individual’s name and took the resulting refund for himself.

In addition to his prison sentence, Stewart was sentenced to serve one year of supervised release and ordered to pay restitution in the amount of $577,202.97 to the IRS.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Hayden Brockett and Tax Division Trial Attorney Lauren Castaldi, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

Alpha Corporation (Alpha) has agreed to plead guilty and to pay a $9 million criminal fine for its role in a price-fixing and bid-rigging conspiracy involving automotive access mechanisms for installation in cars manufactured and sold in the United States and elsewhere, the Justice Department announced today.

According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Japan-based Alpha conspired from at least as early as 2002 until at least September 2011 to fix prices and rig bids for automotive access mechanisms sold to Nissan Motor Co. Ltd. and certain of its subsidiaries, including Nissan North America Inc.  Access mechanisms consist of inside and outside door handles, tailgate or trunk handles, keys, lock sets (also called key sets), door locks and electrical and mechanical steering column locks.

“Alpha is the 46th corporation to be charged with participating in an anticompetitive scheme involving auto parts,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division.  “The Antitrust Division is committed to uncovering each and every conspiracy to fix prices in the auto parts industry.”

 “Crimes of this nature weaken the integrity of the bidding process and deny consumers the benefit of free and open competition in the marketplace,” said Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office.  “The FBI will continue to work with the Antitrust Division to ensure fair bidding practices are employed across all sectors of our economy.”

The Antitrust Division charges that Alpha and its co-conspirator engaged in meetings and conversations to discuss and agree upon the bids and price quotations to be submitted to Nissan for the sale of access mechanisms.  As part of its plea, Alpha has agreed to cooperate in the Division’s ongoing investigation.  The plea agreement is subject to court approval.

Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI.  Including Alpha, 46 companies and 64 executives have been charged in the division’s investigation and have agreed to pay a total of more than $2.8 billion in criminal fines. 

Alpha is being prosecuted by the Antitrust Division’s New York Office and the FBI’s New York Field Office.  Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s New York Field Office at 212-384-1000.

Alpha Corporation Information

A Durham, North Carolina, tax return preparer was sentenced today to 12 months and one day in prison for aiding in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand for the Middle District of North Carolina. 

According to documents filed with the court, Reyna Nembiu Montes, operated “Su Manu Amiga,” a tax return preparation business in Durham.  Montes admitted that she prepared multiple false individual income tax returns for clients, claiming false dependents in order to generate fraudulent refunds.  She further admitted that she failed to disclose the existence of her tax return preparation business on her personal income tax returns. 

Montes pleaded guilty on June 26.  In addition to serving her prison sentence, Montes was ordered to serve one year of supervised release and to pay restitution in the amount of $115,287 to the Internal Revenue Service (IRS).

Principal 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 Anand Ramaswamy and Trial Attorney Nathan Brooks 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.

The Office of Justice Programs’ Bureau of Justice Assistance today awarded grants totaling $5.7 million to create safer neighborhoods through a sustained reduction in gang violence and gun crime.  The awards are funded under the 2016 Violent Gang and Gun Crime Reduction (Project Safe Neighborhoods) Program.  The goal of PSN is to create safer neighborhoods through a sustained reduction in gang violence and gun crime.

The program's effectiveness is based on a cooperative approach and unified strategies led by the local U.S. Attorney, a collaborative PSN task force of federal, state, and local law enforcement, community members, and other key partners.  The partners work to implement gang crime and gun violence enforcement, intervention, and prevention initiatives, using data and research with a local research partner.

"Gang violence and gun crime are two of the most formidable obstacles we face in ensuring that every American lives in safe and secure communities," said Attorney General Loretta E. Lynch. "These vital grants give jurisdictions the resources they need to develop comprehensive, collaborative responses to the most serious and destructive crimes.  By combining more effective enforcement with closer cooperation, better data and expanded prevention initiatives, Project Safe Neighborhoods helps communities make meaningful strides towards ending violence, promoting peace, and restoring hope."

“Although crime rates remain at historically low levels nationally, some communities – and particularly, certain segments of those communities – continue to struggle with gun crimes and gang violence,” said Assistant Attorney General Karol V. Mason. “The funding provided through Project Safe Neighborhoods gives these jurisdictions the resources they need to improve outreach and education, prosecute gun and gang cases, and restore peace to their streets and homes.”

This year’s recipients of approximately $500,000 each include Black Family Development, Inc. of Michigan;  the California Governor’s Office of Emergency Services; the Denver Police Department; City of Brookhaven, Georgia; the Governor’s Office of Crime Control Prevention in Maryland; the Ohio Office of Criminal Justice Services; and Texas’ Safe City Commission.  Awards of approximately $300,000 went to the City of Greensboro, North Carolina; The Justice Education Center, Inc. of Connecticut; the Wisconsin Department of Justice; City of Columbia, South Carolina; and the Indiana Criminal Justice Institute (two awards).  The City of Memphis, Tennessee, the City of Omaha, Nebraska and Louisiana State University each received awards of $150,000. 

Each applicant addressed the required PSN design features in its application: (1) Partnerships; (2) Strategic Planning, Crime Analysis, and Research Integration; (3) Training; (4) Outreach; and (5) Accountability and Data-Driven efforts.

The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime, and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.

          Alicia A.G. Limtiaco, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to be the honorary guest speaker at the 9/11 Memorial Ceremony and 1st National Patriot Day & National Service and Remembrance Day, which was held at the Guam Community College on September 11, 2016, and hosted by the Guam Community College Veterans Club (GCCVC) and AmeriCorps. 

          U.S. Attorney Limtiaco spoke about the events of September 11, 2001 remaining forever engrained and deeply rooted in our memories and in our national consciousness, and honoring the many heroes and paying tribute to the survivors and to the family members of those whose lives were lost.  She spoke about the true patriotism these men and women displayed in the face of unconscionable and horrific violence, death and destruction.

          U.S. Attorney Limtiaco thanked the veterans and service members for their unwavering commitment and service to ensuring our nation’s security and protecting our freedoms, and for  inspiring us to persevere, even in the darkest of times, in our pursuit of freedom and justice for all.

More than $6 Million in Fines and Restitution Imposed

Ten Eastern California real estate investors were sentenced yesterday for their participation in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Eastern California, the Department of Justice announced.

The primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Joaquin County public foreclosure auctions at non-competitive prices.  When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner.  According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties.

“These defendants rigged foreclosure auctions to profit at the expense of mortgage holders and homeowners,” said Acting Assistant Attorney General Renata Hesse of the Department of Justice’s Antitrust Division.  “Yesterday’s sentences send a strong message that conspiracies to eliminate competition in any area of our economy will not be tolerated.” 

“My office will continue to fight real estate fraud in all its forms, including bringing to justice those who would subvert public foreclosure auctions for their own personal gain,” said Acting United States Attorney Phillip A. Talbert of the Eastern District of California.

The following individuals were sentenced in the U.S. District Court for the Eastern District of California in Sacramento:

• Anthony B. Ghio, of Stockton, California, was sentenced to serve five months in prison and ordered to pay a $1 million criminal fine and $214,544 in restitution to the victims of the crime.

• John R. Vanzetti, of Stockton, California, was sentenced to serve five months in prison and ordered to pay a $1 million criminal fine and $271,454 in restitution to the victims of the crime. 

• Theodore B. Hutz, of Stockton, California, was sentenced to serve five months in prison and ordered to pay a $250,000 criminal fine and $76,670 in restitution to the victims of the crime. 

• Richard Northcutt, of Stockton, California, was sentenced to serve seven months in prison and ordered to pay a $1 million criminal fine and $614,982 in restitution to the victims of the crime. 

• Kennen A. Swanger, of Alta, California, was sentenced to serve five months in prison and ordered to pay a $5,000 criminal fine.

• Wiley C. Chandler, of Stockton, California, was sentenced to serve seven months in prison and ordered to pay a $500,000 criminal fine and $614,982 in restitution to the victims of the crime.

• Walter Daniel Olmstead, of San Francisco, California, was sentenced to serve eight months in prison and ordered to pay a $29,687 in restitution to the victims of the crime.

• Gregory L. Jackson, of Lodi, California, was sentenced to pay a $150,000 criminal fine and $20,900 in restitution to the victims of the crime. 

• Robert Rose, of Danville, California, was sentenced to pay a $100,000 criminal fine and $24,128 in restitution to the victims of the crime.

• Anthony B. Joachim, of Stockton, California, was sentenced to pay a $175,000 criminal fine and $94,154 in restitution to the victims of the crime.

Two other real estate investors, Andrew B. Katakis and Donald M. Parker, were convicted at trial of bid rigging in March 2014.  

A total of thirteen individuals pleaded guilty or were convicted in the U.S. District Court for the Eastern District of California in connection with this investigation.  The sentences announced yesterday resulted from an ongoing investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, the FBI’s Sacramento Division and the San Joaquin County District Attorney’s Office.  Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco office at 415-934-5300, visit www.justice.gov/atr/contact/newcase.htm, contact the U.S. Attorney’s Office for the Eastern District of California at 916-554-2700 or contact the FBI’s Sacramento Division at 916-481-9110.

Yesterday’s action was brought 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. 

Regions Bank (Regions) has agreed to pay $52.4 million to the United States 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 Department of Justice announced today.  Regions is headquartered in Birmingham, Alabama.                                                         

“Mortgage lenders that participate in the FHA insurance program must follow the requirements intended to safeguard its integrity and to protect homeowners,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “We will continue to hold responsible lenders that knowingly violate these important requirements.”

“The FHA insurance program plays a critical role in the stability of the housing market,” said U.S. Attorney for the Middle District of Florida A. Lee Bentley III.  “Lender misconduct that puts this program at risk will not be tolerated.”

Since at least January 2006, Regions 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 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 settlement announced today, Regions admitted that between Jan. 1, 2006, and Dec. 31, 2011, it certified for FHA insurance certain mortgage loans that did not meet certain HUD underwriting requirements regarding borrower creditworthiness.  In addition, between Jan. 1, 2006 and Dec. 31, 2011, Regions did not maintain a quality control (QC) program that fully complied with the requirements established by HUD.  Regions’ QC Department did not consistently review an adequate sample of FHA-insured loans.  Moreover, to the extent that Regions’ QC Department identified deficiencies during the course of its loan review, Regions engaged in a pattern of “curing” QC findings by obtaining documentation that was not available to the underwriter at the time the loan was approved.  As a result, the defect rate reported to senior management was understated.  Regions also failed to review Early Payment Default (EPD) loans in accordance with HUD guidelines.  Regions was required to review all loans that became 60 days past due within the first six months.  Nevertheless, at certain times prior to 2011, as part of its EPD review, Regions reviewed only those loans that became 90 days past due.

Additionally, Regions did not fully adhere to HUD’s self-reporting requirements.  During the period between Jan. 1, 2006, and Dec. 31, 2011, the HUD Handbook required lenders to report “findings of fraud” or “other serious violations” or “serious material deficiencies” to HUD.  Although Regions’ monthly QC reviews identified numerous FHA-insured loans for that period that contained material deficiencies, Regions did not begin self-reporting these materially deficient loans to HUD until 2011.

As a result of Regions’ conduct and omissions, HUD insured hundreds of loans approved by Regions 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.

“FHA-approved lenders have a responsibility to ensure that FHA-insured loans meet our standards, which are in place for the protection of FHA’s insurance fund,” said Helen Kanovsky, HUD’s General Counsel.  “The agreement we announce today should serve as a reminder that sustainable homeownership starts with compliance with underwriting requirements.”

“This settlement resolves allegations that a financial institution, trusted to comply with FHA loan origination, underwriting and quality control requirements, failed to meet its obligations as a participant in the FHA program,” said Inspector General David A. Montoya for HUD.  “The bank’s actions impact the solvency of the FHA insurance fund.  It is through the combined efforts of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida, HUD and the Office of Inspector General that we continue to ensure the integrity of this important FHA program to American homeowners.”

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 Middle District of Florida.  The claims asserted against Regions are allegations only, and there has been no determination of liability.

The Department of Justice today announced awards totaling more than $13 million to 41 state, local and tribal jurisdictions and courts to help improve drug court programs through evidence-based principles and practices.

The awards, funded under the 2016 Adult Drug Court Discretionary Grant Program, provide government court systems financial and technical assistance to develop and implement programs for substance abuse treatment, mandatory drug testing, sanctions and incentives, and transitional services for substance abusers.

“Adult drug court” is a court program managed by a multidisciplinary team that responds to the offenses and treatment needs of participants who have a drug addiction.

“Drug court is an effective and cost-efficient alternative to incarceration that encourages accountability, promotes rehabilitation, and gives individuals with a history of substance abuse a meaningful second chance at life,” said Attorney General Loretta E. Lynch.  “With these grants, the Department of Justice is deepening its investment in these vital programs, and we are reaffirming our vision of a criminal justice system that is not just an instrument of punishment, but also an agent of positive change.”

Adult Drug Courts enable a participant’s likelihood of successful rehabilitation through early, continuous, and intense judicially-supervised treatment; mandatory periodic drug testing; community supervision; appropriate sanctions and other services.

Additional information about the Drug Court Program is available at http://go.usa.gov/xZHrY.

The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime, and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.

The Department of Justice today announced awards totaling more than $17.5 million to state justice agencies and technical assistance partners to improve public safety and more effectively manage correctional populations and costs.

This year’s awards include $5.85 million to four state agencies (Nebraska, Ohio, Oregon, and South Dakota) and two organizations that will assist these agencies: the Center for Effective Public Policy, Inc., and the University of Cincinnati. The remaining $11.6 million is being awarded to two non-government partner organizations—the Council of State Governments Justice Center and the Crime and Justice Institute—to provide technical assistance to the 20 states currently receiving support with their data analysis, policy development, and implementation efforts.

“Correctional reform is a vital part of our efforts to make our criminal justice system more efficient, more effective, and more fair,” said Attorney General Loretta E. Lynch. “These awards advance that goal by reducing states’ prison populations and encouraging them to use proven strategies in their approach to criminal justice – changes that will not only ease public finances, but also improve public safety.”

The Justice Reinvestment Initiative provides participating states with a means for all three state government branches and other stakeholders to work together and implement results-oriented, data-driven justice systems reform. This funding also enable state leaders, with the input of stakeholders, to examine their states’ unique sentencing and corrections systems, investments and outcomes and make better-informed decisions about treatment, programs and prison/jail resources. Savings from these reforms are reinvested in high-performing public safety strategies. To date, 30 states have used the Justice Reinvestment Initiative to take a comprehensive look at their criminal justice systems.

The site-based awards, funded under the JRI: Maximizing State Reforms Program, supports states that have already adopted justice reinvestment policies to implement one or more strategies to further the goals of a state’s justice reinvestment reform efforts, including the commitment to data-driven decision making and investment in evidence-based practices and programs.

For more information about the Justice Reinvestment Initiative visit http://go.usa.gov/xZsqe.

The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime, and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.

Changes Include New Code of Professional Responsibility for Practice of Forensic Science

The Department of Justice announced new steps today as part of its ongoing commitment to strengthening and advancing forensic science.  The department will implement a number of steps that will promote professional responsibility among forensics practitioners, institute best practices and advance the relationship between the academic research of forensic science and implementation in the field.

“Today’s announcement marks yet another step forward in the department’s efforts to strengthen the practice of forensic science in our nation’s laboratories and courtrooms,” said Deputy Attorney General Sally Q. Yates.  “We are continually looking at ways to ensure that forensic evidence is collected, analyzed and presented in a responsible and scientifically rigorous manner.”

The new policies include adopting a new code of professional responsibility that builds upon existing policies and accreditation requirements for departmental forensic examiners and laboratories. The department believes the code will improve education and guidance on professional responsibility while establishing a process for identifying and addressing violations of professional conduct.

Department forensic laboratories will also review their policies and procedures to ensure that forensic examiners are not using the expressions “reasonable scientific certainty” or “reasonable (forensic discipline) certainty” in their reports or testimony.  Department prosecutors will also abstain from using these expressions when presenting forensic reports or questioning forensic experts in court unless required by a judge or applicable law.  This decision complements the department’s efforts, announced earlier this year, to provide better guidance to forensic examiners and federal prosecutors on how to properly characterize the strength of forensic evidence in the courtroom.

The department also announced policies to implement greater transparency and access to forensic laboratory quality assurance documents and a plan to explore a grant funding of multiyear post-doctoral fellowships at federal, state and local forensic science service providers and forensic medicine service providers.

The new policies arose out of recommendations made by the National Commission of Forensic Science, which was established to advance the field of forensic science and make suggestions to the Attorney General on how to ensure that reliable and scientifically valid evidence is used when solving crimes.  The Attorney General’s decision to implement several of the commission’s recommendations was announced at a meeting of the commission today.  A memo was also sent to all department component heads directing the implementation of the recommendations.  Additional information on the department’s ongoing work to strengthen forensic science can be found at www.justice.gov/forensics.

The Department of Justice, U.S. Environmental Protection Agency (EPA), U.S. Department of Interior and the state of Ohio announced today that Rutgers Organics Corporation (Rutgers) has agreed to complete the cleanup of the Nease Chemical Superfund Site (site) near Salem, Ohio, estimated to cost $18.75 million.  The agreement is memorialized in a consent decree lodged in federal court today in Youngstown, Ohio.  Under the consent decree, Rutgers also agrees to restore injured natural resources at the site and nearby areas, at a cost of approximately $500,000.   Further, Rutgers will reimburse federal and state agencies their past response and assessment costs of about $1 million.     

“Today’s consent decree is a significant milestone in our efforts to make the environment cleaner and safer for the citizens of Salem and to protect and restore our valuable natural resources in that region” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “I want to thank our state partners, as well as recognize the cooperation of defendant Rutgers, for joining us on a path forward to clean up the contaminated Nease Site while preserving undeveloped land and protecting local drinking water sources.”

“This agreement will undo the damage done in the past while preserving creeks and the watershed for future generations,” said U.S. Attorney Carole S. Rendon for the Northern District of Ohio. 

“This settlement will protect human health and the environment in northeast Ohio by reducing the risk of exposure to potentially harmful chemicals,” said U.S. EPA Acting Regional Administrator Robert Kaplan.  “EPA looks forward to working with our federal and state partners to clean up the site and restore the Little Beaver Creek watershed.”

“The U.S. Fish and Wildlife Service is looking forward to continuing the cleanup and restoration of injured natural resources at the Nease Chemical Site,” said Service Deputy Midwest Regional Director Charlie Wooley.  “This settlement enables the Service and other trustees to work together to restore lost resources and protect valuable habitat in the Little Beaver Creek watershed.”

In a complaint filed today simultaneously with the lodging of the consent decree, the federal and state agencies allege that, between 1961 and 1973, portions of the site were owned and operated by a chemical manufacturing plant known as the Nease Chemical Company (Nease Chemical).  Nease Chemical produced specialty products including pesticides such as Mirex, a probable human carcinogen no longer produced in the United States.   Hazardous substances derived from these specialty products were detected in the soil, ground water, sediments and flood plains/wetlands in the area, as well as in the fish in the nearby main surface water body, the Middle Fork Little Beaver Creek.  Rutgers acquired the assets of Nease Chemical, which ceased operations in 1973.  Since 1988, Rutgers has cooperated with EPA to investigate and clean up the site.

Under the consent decree, Rutgers will complete EPA’s Operable Unit 2 remedy at the site by, among other things, capping soil and treating the ponds and ground water.  Rutgers will also complete EPA’s Operable Unit 3 remedy at the site, by, among other things, removing contaminated sediment and floodplain soil and replacing with clean material.  The total cleanup, including long term operations and maintenance, is estimated to cost $18.75 million.

The contamination released from the chemical plant over time has injured natural resources in and around the site, including the underlying groundwater aquifers which have become unusable as a source of potable water.  As part of the settlement, Rutgers will remove a low-head dam, known as the Lisbon Dam on the Middle Fork Little Beaver Creek and restore adjacent streamside habitat.   Those projects, estimated to cost up to $150,000, are expected to help establish a free-flowing stream with a healthy and diverse fish population. 

Rutgers will also fund a $366,000 trust to conserve a variety of lands in the Little Beaver Creek watershed, especially lands that are subject to pressures from new development in the area, to help provide valuable habitat.  The trust will also seek to conserve property to protect local drinking water source areas from further contamination.    

Further, Rutgers will reimburse the federal and state agencies for their past response and assessment costs, totaling approximately $1 million and agrees to fund all future oversight and assessment costs. 

“This settlement will help protect the environment and Ohio families,” said Ohio Attorney General Mike DeWine.  “It requires the cleanup of a long-contaminated site and the restoration and preservation of natural resources.”

“About 280-acres of habitat were contaminated by hazardous substances injuring surface and ground waters at the former Nease Chemical site,” said Ohio EPA Director Craig W. Butler.  “Healthy streams and waterways are critical to Ohio’s citizens and our economy.  This consent decree is a welcome step forward after many years of work to bring the area stream habitats back to healthy, functioning waterways and protecting drinking water resources into the future.“

Today’s settlement, lodged with the U.S. District Court for the Northern District of Ohio, is subject to a 30-day public comment period following notification in the Federal Register and final approval by the court.  To view the consent decree or to submit a comment, visit the department’s website: www.justice.gov/enrd/Consent_Decrees.html.

For more information about the Nease Site: https://cumulis.epa.gov/supercpad/cursites/csitinfo.cfm?id=0504619]

A Cranston, Rhode Island, resident pleaded guilty yesterday to aiding and assisting in the preparation of false tax returns, wire fraud, theft of government funds and aggravated identity theft, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Peter F. Neronha for the District of Rhode Island.

According to documents filed with the court, Belkis M. Guzman, 48, a tax return preparer who worked at El Centro Multiservicios LLC in Providence, Rhode Island, admitted to preparing false individual income tax returns for clients for tax years 2009 through 2011, which included false dependents, exemptions, tax credits, deductions or expenses.  She also admitted to depositing more than 100 fraudulently obtained U.S. Treasury checks totaling more than $800,700 into her personal bank account, which were generated by the filing of false tax returns prepared by others.  Guzman distributed a portion of these ill-gotten proceeds to others and received a percentage of the negotiated checks as payment for depositing the checks into her account.

U.S. District Judge William E. Smith for the District of Rhode Island scheduled sentencing for Dec. 2.  Guzman faces a statutory maximum sentence of 20 years in prison for the wire fraud count, 10 years in prison for each count of theft of government funds, three years in prison for each count of assisting in the preparation of false tax returns for clients and a mandatory two years in prison for each count of aggravated identity theft, as well as a period of supervised release and monetary penalties.  

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Neronha commended the hard work of special agents of Internal Revenue Service’s Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Richard Rose and Tax Division Trial Attorney Christopher O’Donnell, who are prosecuting this case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

The Justice Department reached a comprehensive settlement agreement today with the California Department of Education (CDE) and the California State Board of Education to improve their compliance monitoring systems and ensure language instruction services to the approximately 1.4 million English Learner (EL) students in the state’s public schools. 

The settlement resolves the department’s May 2015 findings that California’s system for monitoring its public schools’ provision of language services to EL students did not satisfy the state’s obligations under the Equal Educational Opportunities Act (EEOA) of 1974.  The state cooperated fully during the review.

The department concluded that the state had failed to respond appropriately to schools’ certified reports showing that over 20,000 EL students were not receiving instructional language services each school year since 2007 to 2008.  The two-year agreement requires the state to undertake several actions, including:

• respond in a timely and effective manner to credible evidence that schools are failing to serve EL students, including notifying them of violations and providing a protocol by which they must submit to CDE documented evidence that resolves the violations;
• when selecting schools for monitoring reviews, consider their reports of unserved EL students and include charter schools in the selection process for such reviews each year;
• improve CDE’s online monitoring tool and require that schools found to be out of compliance with specific requirements in this online tool receive onsite monitoring if they fail to provide adequate evidence that the noncompliance has been resolved; and
• develop and implement policies and training on the monitoring, review and corrective action processes of CDE’s monitoring of schools for EL service violations, and ensure that all EL monitoring consultants receive such training.

“We applaud the state of California for working cooperatively with the Justice Department to ensure that all English Learner students can access the language services they need to learn,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “We look forward to working with state officials to implement this important agreement and ensure full compliance in the months ahead.”

The agreement addresses many of the legal principles discussed in the United States’ statement of interest filed in July 2014 in a related private EEOA case in state court, D.J. v. State of California.  The state case resulted in a private settlement whose obligations are unaffected by the agreement reached today between the department and the state.

The EEOA requires state and local education agencies to take appropriate action to overcome language barriers that impede students’ equal participation in instructional programs.  Enforcement of the EEOA is a top priority of the Justice Department’s Civil Rights Division.  Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.

California EL Settlement Agreement

The Department of Justice, the Department of the Army and the Department of the Interior issued the following statement regarding Standing Rock Sioux Tribe v. U.S. Army Corps of Engineers:

“We appreciate the District Court’s opinion on the U.S. Army Corps of Engineers’ compliance with the National Historic Preservation Act.  However, important issues raised by the Standing Rock Sioux Tribe and other tribal nations and their members regarding the Dakota Access pipeline specifically, and pipeline-related decision-making generally, remain.  Therefore, the Department of the Army, the Department of Justice, and the Department of the Interior will take the following steps.

The Army will not authorize constructing the Dakota Access pipeline on Corps land bordering or under Lake Oahe until it can determine whether it will need to reconsider any of its previous decisions regarding the Lake Oahe site under the National Environmental Policy Act (NEPA) or other federal laws.  Therefore, construction of the pipeline on Army Corps land bordering or under Lake Oahe will not go forward at this time.  The Army will move expeditiously to make this determination, as everyone involved — including the pipeline company and its workers — deserves a clear and timely resolution.  In the interim, we request that the pipeline company voluntarily pause all construction activity within 20 miles east or west of Lake Oahe.

“Furthermore, this case has highlighted the need for a serious discussion on whether there should be nationwide reform with respect to considering tribes’ views on these types of infrastructure projects.  Therefore, this fall, we will invite tribes to formal, government-to-government consultations on two questions:  (1) within the existing statutory framework, what should the federal government do to better ensure meaningful tribal input into infrastructure-related reviews and decisions and the protection of tribal lands, resources, and treaty rights; and (2) should new legislation be proposed to Congress to alter that statutory framework and promote those goals.

“Finally, we fully support the rights of all Americans to assemble and speak freely.  We urge everyone involved in protest or pipeline activities to adhere to the principles of nonviolence.  Of course, anyone who commits violent or destructive acts may face criminal sanctions from federal, tribal, state, or local authorities.  The Departments of Justice and the Interior will continue to deploy resources to North Dakota to help state, local, and tribal authorities, and the communities they serve, better communicate, defuse tensions, support peaceful protest, and maintain public safety. 

“In recent days, we have seen thousands of demonstrators come together peacefully, with support from scores of sovereign tribal governments, to exercise their First Amendment rights and to voice heartfelt concerns about the environment and historic, sacred sites.  It is now incumbent on all of us to develop a path forward that serves the broadest public interest.”

Defendant convicted of failing to pay over more than $790,000 in payroll taxes 

A Pittsburgh, Pennsylvania, man was convicted today by a federal jury in the U.S. District Court for the Western District of Pennsylvania of 16 counts of failing to collect, account for and pay over employment taxes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.

According to the evidence presented at trial, between 2004 and 2015, Steven Lynch, a tax attorney, co-owned and operated the Iceoplex at Southpointe, a recreational sports facility located in Washington County, Pennsylvania.  The Iceoplex included a fitness center, ice rink, soccer court, restaurant and bar.  Lynch controlled the finances for these businesses and was responsible for collecting income and employment taxes withheld from employee wages, accounting for these taxes and filing Forms 941, payroll tax returns, and paying these taxes over to the Internal Revenue Service (IRS).  The jury found that between 2012 through 2015, Lynch failed to timely pay over to the IRS more than $790,000 in taxes withheld from the wages of the employees for these businesses. 

“Employers are entrusted with collecting the taxes withheld from their employees’ wages, and they have an absolute legal obligation to pay that money over to the IRS,” said Principal Deputy Assistant Attorney General Ciraolo.  “The conviction of Steven Lynch serves as a strong reminder to all employers that failure to comply with employment tax obligations has significant consequences, including prosecution and incarceration.  The department, together with its partners within the IRS, will continue to vigorously pursue those who violate our nation’s tax laws and threaten the integrity of our tax system.”

“The jury’s verdict is a clear signal that the criminal tax laws of our country are being enforced and upheld for the benefit of all citizens,” said Chief Richard Weber of IRS-Criminal Investigation (CI).  “Those who attempt to skirt the law will be held accountable.”

Sentencing is scheduled for Jan. 11, 2017.  Lynch faces a statutory maximum sentence of up to five years in prison for each count of willfully failing to collect, account for and pay over employment tax, as well as a period of supervised release and monetary penalties. 

Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-CI, who conducted the investigation, and Trial Attorneys Jeffrey Bender and Brittney Campbell of the Tax Division, who prosecuted the case.  Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office in the Western District of Pennsylvania for their substantial assistance.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.                                                                                      

The U.S. Departments of Justice and Education released today new tools to improve school climates, ensure safety, and support student achievement in our nation's schools.

To the extent a local decision is made to use school resource officers (SROs) in community schools, these resources will help state and local education and law enforcement agencies responsibly incorporate SROs in the learning environment.  Additionally, the departments have highlighted tools available for law enforcement agencies that also apply to campus law enforcement agencies.

“With the release of these vital resources, the Obama Administration is furthering its commitment to ensuring that schools and SROs follow best practices, ensuring a positive and supportive classroom environment,” said Attorney General Loretta E. Lynch.  “By fostering relationships of trust and respect between students and school resource officers, we can continue to build safer schools where our young people can learn and thrive – a vital effort that the Department of Justice will continue to advance with our partners at the federal, state, and local levels in the months to come.”  

“As educators, we are all bound by a sacred trust to protect the well-being, safety, and extraordinary potential of the children, youth and the young adults within the communities we serve,” said U.S. Secretary of Education John B. King Jr.  “School resource officers can be valuable assets in creating a positive school environment and keeping kids safe.  But we must ensure that school discipline is being handled by trained educators, not by law enforcement officers.  At the college level, the President's Task Force on 21st Century Policing has important recommendations that can help campus and local law enforcement both keep students safe and safeguard students' civil rights.”

To assist states, schools and their law enforcement partners in assessing the proper role of SROs and campus law enforcement professionals, both the Justice Department's Office of Community Oriented Policing Services and the Education Department released letters to states and districts emphasizing the importance of well-designed SRO programs and calling on leaders of institutions of higher education to commit to implementing recommendations from the President's Task Force on 21st Century Policing in the campus policing context.

To assist in the K-12 context, the departments also jointly released the Safe, School-based Enforcement through Collaboration, Understanding, and Respect (SECURe) Rubrics.  These new resources can help education and law enforcement agencies that use SROs to review and, if necessary, revise SRO-related policies in alignment with common-sense action steps that can lead to improved school safety and better outcomes for students while safeguarding their civil rights.

Letters:

Campus letter from DOJ

P-12 letter from DOJ

Campus letter from Education

P-12 letter from Education

Rubrics:

State and local policy

Local implementation

The release of these materials builds on the Obama Administration's work with states and districts to improve discipline practices and climate in the nation's schools.  The departments have worked collaboratively to recognize states and districts leading the way on these issues as well as to provide states and districts with effective alternatives to exclusionary discipline practices and continue to call upon a broad array of stakeholders to rethink approaches to school discipline in order to keep kids in school and out of the justice system.  Highlights from the Administration's supportive school discipline efforts include:

Joint Federal Policy and Legal Guidance: Education and Justice jointly released a School Climate and Discipline Guidance Package in 2014 to provide schools with a roadmap to reduce the usage of exclusionary discipline practices and clarify schools' civil rights obligation to not discriminate on the basis of race, color or national origin in the administration of school discipline.

#RethinkDiscipline Convening and Public Awareness Campaign: Education and Justice launched Rethink Discipline at the White House in July of 2015, convening school district teams, including some law enforcement practitioners and justice officials from across the country and sparking a national dialogue around punitive school discipline policies and practices that exclude students from classroom instruction and targeted supports.

Rethink School Discipline: Resource Guide for Superintendent Action: As a part of Rethink Discipline, the Department of Education developed a resource guide with a set of potential action items to help school leaders implement safe, supportive school climate and discipline by engaging stakeholders, assessing the results and history of existing school climate and discipline systems and practices; implementing reform; and monitoring progress.

Support for State and Local Educational Leaders and Partners from Other Systems: In 2015, the Department of Justice launched the National Resource Center for School Justice Partnerships to advance school discipline reform efforts and serve as a dynamic resource hub for schools, law enforcement agencies, and others to support school discipline reform efforts at the local level.

Fostering Safe and Supportive Learning Environments: In 2016, the Department of Education released the ED School Climate Surveys and the Quick Guide on Making School Climate Improvements to help foster and sustain safe and more nurturing environments that are conducive to learning for all students.

Addressing Implicit Bias and Discipline Disparities in Early Childhood Settings: In 2016, the Departments of Education and Health and Human Services recently announced a new investment of $1 million in the Pyramid Equity Projectto establish national models for addressing issues of implicit bias, and uneven implementation of discipline, including expulsions and suspensions, in early learning programs.

Providing Guidance to Schools on Ensuring Equity and Providing Behavioral Supports to Students with Disabilities: In 2016, the Department of Education announced the release of a significant guidance document in the form of a Dear Colleague Letter, which emphasized the requirement that schools provide positive behavioral supports to students with disabilities who need them. It also clarified that the repeated use of disciplinary actions may suggest that many children with disabilities may not be receiving appropriate behavioral interventions and supports. Also included was a Summary for Stakeholders.

The new resources and letters released today build on the work of the My Brother's Keeper Initiative and the Council on Women and Girls, and respond to recommendations put forth by the President's Task Force on 21st Century Policing to support schools in developing more positive school climates and strengthening the relationship between law enforcement and the communities they serve. These efforts help districts, schools, and communities build credible and sustainable systems, structures, and partnerships that provide safe, supportive learning environments that uplift students and nurture them when they do well and when they need support to do better.

Goodman Company L.P. has agreed to pay a $5.55 million civil penalty to settle allegations that it failed to timely inform the Consumer Product Safety Commission (CPSC) of a fire risk posed by certain air conditioning and heating units, many of which were installed in hotels, schools and hospitals, the Department of Justice and the CPSC jointly announced today.  The settlement also resolves allegations that, when Goodman ultimately reported the fire risk to the CPSC, it misrepresented the number of fires that had occurred.  Goodman is a Delaware corporation based in Houston, Texas.

The delay and misrepresentation violated the Consumer Product Safety Act, the government asserted in a complaint filed today in the U.S. District Court for the Southern District of Texas.  To resolve the complaint, Goodman agreed to the $5.55 million civil penalty and other terms of a consent decree, which is subject to judicial approval. 

“Goodman knew of a fire risk but waited roughly two years to inform the CPSC,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “Companies must report these safety issues immediately, as the law requires, to protect the public from an unnecessary risk of injury.  The Department of Justice will continue to take enforcement action against companies that do not meet their consumer product safety obligations.”

“Goodman’s conduct was illegal, dangerous and unacceptable,” said CPSC Chairman Elliot F. Kaye.  “Goodman’s decision to hide information about serious fires for years, while continuing to profit from sales, slowed down the announcement of a recall and put the safety of many families at real risk.  CPSC will continue to work closely with the Department of Justice to enforce the law and hold violators accountable.”

The government’s complaint concerns through-the-wall air conditioning and heating products known as packaged terminal air conditioner/heaters, or PTACs.  The United States alleged that Goodman knew in 2008 that certain PTACs it manufactured between January 2007 and April 2008 (Subject PTACs) had improperly-crimped power cords that could pose a fire risk.   

Goodman had been receiving reports about the Subject PTACs catching fire, smoking and overheating.  Among the reports, Goodman learned in May 2011 of a fire at a lodging facility in New York.  At that hotel, the complaint alleged that Goodman replaced the control boards and power cords for over 100 Subject PTACs.  Goodman made similar large-scale replacements in 2013, replacing the power cords and control boards for more than 335 Subject PTACs at seven hotels, following two hotel fires in Indiana and Idaho.  But Goodman did not report the fire risk to the CPSC until Nov. 26, 2013, at least six months after it learned of these fires.

When it ultimately reported to the CPSC, Goodman identified only three reports of overheating.  In fact, by that time, the complaint alleged that Goodman had received scores of additional reports of overheating, including reports of fire, potentially attributable to the Subject PTACs’ power cord.

After reporting to the CPSC, Goodman learned of additional fires involving the Subject PTACs, but failed to timely report six of them to the CPSC, as set forth in the complaint.  At least 10 months passed between when Goodman learned of each of those fires and when the fire was reported to the CPSC.

The consent decree requires Goodman to maintain a compliance program to ensure that the company complies with the Consumer Product Safety Act and to maintain internal controls and procedures designed to ensure timely, truthful, complete, and accurate reporting to the CPSC as required by law.  Goodman is subject to liquidated damages if the company is not in compliance with the consent decree.

In agreeing to settle this matter, Goodman has not admitted that it violated the law.                                                   

The government is represented by Trial Attorney Daniel Zytnick of the Civil Division’s Consumer Protection Branch, with the assistance of Patricia Vieira of the CPSC’s Office of the General Counsel.

For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.  

Attorney General Lynch to hold a 9/11 commemoration event at the Department of Justice and Travel to New York to attend Memorial Services

Attorney General Loretta E. Lynch will lead a moment of silence as part of a commemoration ceremony with Department of Justice employees on FRIDAY, SEPT., 9, at 9:00 a.m. EDT to recognize the 15th anniversary of the 9/11 terrorist attack.  Following the moment of silence, the Attorney General will deliver remarks and dedicate a commemorative plaque for the “Survivor Tree” seedling that was planted in the Department of Justice’s courtyard on the anniversary last year.  

On SATURDAY, SEPT. 10, at 3:00 p.m. EDT, the Attorney General will attend the New York City Fire Department’s (FDNY) 15th Anniversary Memorial Mass at St. Patrick’s Cathedral.  The memorial mass is closed to press but livestreamed on the St. Patrick’s Cathedral website.  On SUNDAY, SEPT. 11, AT 8:46 A.M. EDT Attorney General Lynch will attend the 15th anniversary ceremony at the National September 11 Memorial Plaza, and will tour the 9/11 Memorial Museum.  Attorney General Lynch will then deliver remarks at a memorial service hosted by the First Presbyterian Church of Brooklyn on SUNDAY, SEPT. 11 AT 11:00 A.M. EDT, which she attended as a member during the years she lived in Brooklyn. 

DEPARTMENT OF JUSTICE MOMENT OF SILENCE AND SURVIVOR TREE PLAQUE UNVEILING

WHO:           Attorney General Loretta E. Lynch

Deputy Attorney General Sally Q. Yates,

Principal Deputy Associate Attorney General Bill Baer

FBI Director James Comey

Assistant Attorney General John P. Carlin of the National Security Division

Assistant Attorney General Leslie R. Caldwell of the Criminal Division

WHEN:          FRIDAY, SEPTEMBER 9, 2016

9:00 a.m. EDT

WHERE:       U.S. Department of Justice

Courtyard

950 Pennsylvania Ave., N.W.

Washington, D.C.                                   

OPEN PRESS (Media Gather Time: 7:50 a.m. EDT; Final Access: 8:40 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 [email protected] or [email protected].   

FDNY 15th ANNIVERSARY MEMORIAL MASS AT ST. PATRICK’S CATHEDRAL

WHEN:         SATURDAY, SEPTEMBER 10, 2016

3:00 p.m. EDT

WHERE:       St. Patrick’s Cathedral

5th Ave and 51st Street

New York, NY 10022                                   

OPEN TO PRINT MEDIA

LIVESTREAMED AT: http://saintpatrickscathedral.org/live.

Note: NYCTV will also provide a livestream for media cameras outside the cathedral.

9/11 COMMEMORATION CEREMONY

WHEN:         SUNDAY, SEPTEMBER 11, 2016

8:46 a.m. EDT

WHERE:       9/11 Memorial Plaza

180 Greenwich Street

New York, NY 10007                             

OPEN TO REGISTERED PRINT MEDIA & BROADCAST POOL CAMERA

LIVESTREAMED AT: www.911memorial.org.

NOTE: Print media should register here.  Space is limited and not guaranteed.  Please note that registration for this event closes today, Thursday, Sept. 8, at 11:30 a.m. EDT.  Press inquiries regarding logistics should be directed to Michael Frazier or Kate Monaghan at [email protected] or (212) 312-8800; or the 9/11 Memorial Media Center.

9/11 MEMORIAL SERVICE AT FIRST PRESBYTERIAN CHURCH OF BROOKLYN

WHO:           Attorney General Loretta E. Lynch

WHEN:         SUNDAY, SEPTEMBER 11, 2016

11:00 a.m. EDT

WHERE:       First Presbyterian Church of Brooklyn

124 Henry Street

Brooklyn, NY 11201

OPEN TO REGISTERED MEDIA (Media Gather Time: 9:30 a.m. EDT; Final Access: 10:30 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.  Members of the media must RSVP to [email protected] and [email protected] by FRIDAY, SEPTEMBER 9, 2016, at 5:00 p.m. EDT.  Space is limited and not guaranteed.  Press inquiries regarding logistics should be directed to [email protected] or [email protected].   

Background on the Survivor Tree:

Hundreds of trees grace the plaza of the 9/11 Memorial, but one is unlike the rest.  It’s a Callery pear tree that once stood on the original World Trade Center Plaza.  The collapse of the Twin Towers on Sept. 11, 2001 nearly destroyed it, but it was nursed back to health, and today it stands strong again at the Memorial, where it is often adorned with tributes from the Memorial’s millions of visitors. It is known around the world as the “Survivor Tree.”

Fruit from the Survivor Tree was harvested in the fall of 2011 by Bartlett Tree Experts.  In the summer of 2013, the students of John Bowne High School in Flushing, Queens, New York, took custody of the seedlings and have continued to care for them.  The project is a learning experience for the students, teaching about the agriculture of the trees and the history of 9/11.

Each year the 9/11 Memorial donates a Survivor Tree Seedling to a community who has overcome tragedy.  These communities represent the spirit of the Survivor Tree and their tree will serve as an inspirational landmark conveying resiliency and hope within the community, just as the Survivor Tree does at the 9/11 Memorial.  In 2015, the 9/11 Memorial graciously donated one of these unique seedlings to DOJ, and today, it continues to flourish in the courtyard of Main Justice.

The United States has filed a False Claims Act case against Vanguard Healthcare LLC, Vanguard Healthcare Services LLC, Boulevard Terrace LLC, Vanguard of Crestview LLC, Glen Oaks LLC, Imperial Gardens Healthcare and Rehabilitation LLC, Vanguard of Memphis LLC, Vanguard of Manchester LLC and Vanguard’s Director of Operations, Mark Miller, the Department of Justice announced today.  The lawsuit alleges that the defendants were responsible for the submission of false claims to Medicare and Medicaid for skilled nursing home services that were either non-existent or grossly substandard.  The lawsuit also alleges that the defendants submitted required nursing facility Pre-Admission forms with forged physician and nurse signatures.  Vanguard Healthcare LLC is headquartered in Brentwood, Tennessee, and has 14 long-term care nursing home providers operating around the United States.

“Our seniors rely on the Medicare and Medicaid programs to help care for them with dignity and respect,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice's Civil Division.  “It is critically important that we confront nursing home operators who put their own economic gain over the needs of their residents.  Operators who bill Medicare and Medicaid while failing to provide essential services will be held accountable.”

The United States’ complaint alleges that between Jan. 1, 2010, and Dec. 31, 2015, the six Vanguard facilities failed to provide the most basic and essential skilled nursing services to their residents.  The lack of adequate care at the Vanguard facilities included chronic staffing and critical medical supplies shortages, failure to provide standard infection control, failure to administer medication to residents as prescribed by their physicians, failure to provide wound care as ordered by physicians, failure to adequately manage residents’ pain and providing unnecessary and excessive psychotropic medications to residents and using unnecessary physical restraints on residents.  As a result, Vanguard residents suffered pressure ulcers, falls, dehydration and malnutrition, among other harms.  The United States’ complaint further alleges that Miller, who served as the Director of Operations for Vanguard from September 2011 through August 2014, knew that resident care at the Vanguard facilities was non-existent or grossly substandard but failed to correct these problems.

The United States’ Complaint also alleges that from September 2012 through April 2014, Boulevard Terrace LLC, Glen Oaks LLC, Vanguard of Memphis LLC and Vanguard of Manchester LLC fraudulently submitted falsified Pre-Admission forms to Tennessee Medicaid.

On May 6, the Vanguard corporate entities named in the government's complaint filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code, which were administratively consolidated in the Middle District of Tennessee.

“We are committed to combating elderly abuse, neglect and financial exploitation,” said U.S. Attorney David Rivera for the Middle District of Tennessee.  “We will continue to hold accountable those who profit from the care of elderly Medicare and Medicaid beneficiaries, including nursing home operators, while providing non-existent or grossly substandard care.”

This case illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $30.6 billion through False Claims Act cases, with more than $18.5 billion of that amount recovered in cases involving fraud against federal health care programs.  Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, including the conduct described in the United States’ complaint, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).

This matter was investigated by the Commercial Litigation Branch of the Justice

Department’s Civil Division, the U.S. Attorney’s Office for Middle District of Tennessee, the Department of Health and Human Services’ Office of Inspector General, and the Tennessee Attorney General’s Office and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit.  This action is supported by the Elder Justice and Nursing Home Initiative, which coordinates the department’s activities combating elder abuse, neglect and financial exploitation, especially as they impact beneficiaries of Medicare, Medicaid and other federal health care programs.  For more information about the Department’s Elder Justice Initiative, see https://www.justice.gov/elderjustice/. 

The claims asserted against the defendants are allegations only and there has been no determination of liability.

The lawsuit is captioned United States vs. Vanguard, et al., CA 3:16 -cv-02380 (M.D.Tenn 2016).

 A Cumberland County, New Jersey, man allegedly connected to and living with an individual involved in a dog fighting conspiracy was arrested today for possessing dogs for the purpose of dog fighting, announced Assistant Attorney General John C. Cruden, head of the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Paul Fishman for the District of New Jersey.

Robert A. Elliott Sr., 47, of Millville, New Jersey, was charged by complaint with two counts of possessing pit bull-type dogs for dog fighting ventures in New Jersey and elsewhere.  He is expected to appear before U.S. District Judge Joel Schneider for the District of New Jersey in Camden, New Jersey, federal court.

According to documents filed in this case and statements made in court: the federal Animal Welfare Act makes it a felony to fight dogs or to possess, train, sell, buy, deliver, receive, or transport dogs intended for use in dog fighting. 

On June 1, Frank Nichols and other individuals were charged by complaint with violations of the federal Animal Welfare Act pertaining to dog fighting.  That day law enforcement officers executed a search warrant of a residence on a multi-acre property in Millville where Nichols lived.   Elliott, also lived at the residence.

During the search of the residence, law enforcement officers seized 13 live pit bull-type dogs.  Seven of the dogs were housed on heavy chains in a wooded area behind the house.  The dogs were spaced so that they could not reach one another.  Two additional dogs were housed individually in pens in the wooded area near the chained dogs.  Law enforcement officers found three more dogs in shipping crates in the unfinished basement.  One of the 13 dogs, who appeared ill, was found in a crate in a room on the first floor.

Several of the dogs had scars and other signs of injury and all of the dogs had untreated veterinary conditions. Law enforcement also found other indications that the dogs were used in dog-fighting ventures, such as:

• Break sticks, which are used to pry open a dog’s mouth in order to release a hold that the dog has on another dog;
• A stand often called a “rape rack,” or “breeder stand” as referred to by defendant Elliott, designed to hold a female dog off the ground and immobilize her while a male dog mounts her.  The device is used where the female dog is too dog-aggressive to mate otherwise;
• A box containing veterinary medications, a skin stapler, numerous needles and syringes, catheters, IV bags and tubing, sutures and suture removing tools;
• Testosterone boosting supplements, which are often used by dog fighters to increase muscle mass and aggression of dogs before a fight;
• Dog pedigrees and printouts of dogs from dog fighting registries, including pedigrees related to the pit bull-type dogs found at his residence.

Elliott claimed ownership of several of the dog fighting paraphernalia found in his home and indicated that he and his family owned 10 of the 13 pit bull-type dogs found at his residence.

The counts of possession of an animal for participation in an animal fighting venture each carry a maximum potential penalty of up to five years in prison.

This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting.  The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.”

Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.

The government is represented by the Justice Department’s Environmental Crimes Section Trial Attorneys Ethan Eddy and Shennie Patel and Assistant U.S. Attorneys Jihee Suh and Kathleen O’Leary of the District of New Jersey.

The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.

The charges and allegations in the complaint are merely accusations and the defendant is considered innocent unless proven guilty.

The Justice Department reached an agreement today with Cumberland Staffing Inc., doing business as AtWork Cumberland Staffing (ACS), to resolve the department’s investigation into whether the company discriminated against work-authorized immigrants and naturalized U.S. citizens in violation of the Immigration and Nationality Act (INA).  ACS is a temporary staffing agency with an office located in Cookeville, Tennessee.

The department initiated its investigation after a Tennessee resident notified the department of an ACS job posting that included a U.S. birth certificate requirement.  The department’s investigation found that between December 2015 and February 2016, ACS’s Cookeville office created and published a job posting stating that applicants for machine operator positions at a client company must present a U.S. birth certificate, even though there was no legal authorization for such requirement.  The discriminatory posting was published on several job search engine websites during this time period.

The INA’s anti-discrimination provision prohibits employers from discriminating in hiring, recruiting or referring for a fee based on a person’s citizenship, immigration status or national origin.  In the absence of a legal basis to do so (such as a law, regulation or government contract that requires U.S. citizenship restrictions), employers, recruiters and referrers for a fee may not limit job opportunities or otherwise impose barriers to obtaining employment based on an individual’s citizenship, immigration status or national origin.  By requiring a U.S. birth certificate – a document that only non-naturalized U.S. citizens possess – to be considered for an employment opportunity, ACS’s job posting created a discriminatory barrier for work-authorized individuals, such as naturalized U.S. citizens, U.S. nationals, lawful permanent residents, asylees and refugees. 

Under the settlement agreement, ACS will pay a civil penalty, remove all specific document requirements from its job postings except where required by law, train staff on proper employment verification and reverification procedures and ensure that trained staff or legal counsel review future job advertisements.

“Staffing agencies, which are in the business of making employment opportunities available to job seekers, cannot create unlawful and discriminatory employment barriers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “The department commends ACS for its cooperation during the investigation and its willingness to address the situation.” 

The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA.  The statute prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation; and intimidation.

To learn more about the protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.

Applicants or employees who believe they have been subjected to different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing or recruitment or referral, should contact OSC’s worker hotline for assistance.

AtWork Settlement Agreement

The Justice Department announced today that it has terminated its January 2012 settlement agreement with the Mercer County, West Virginia, School District following the district’s successful implementation of programs and services for its English Learner (EL) students, as required by the Equal Educational Opportunities Act (EEOA) of 1974.

After entering into the settlement agreement, the district implemented a process whereby every new student completed a home language survey so that all students with non-English speaking backgrounds were timely identified; had their English proficiency assessed; and if they were not proficient, were provided with individualized English language services and supports.  The district also implemented a new curriculum for the instruction of EL students, improved its teacher training, carefully monitored the academic progress of current and former EL students and enhanced its communications with limited-English proficient families.

As a result of its efforts, the district has successfully integrated dozens of EL students into its student body, enabling them to access the curriculum and develop strong relationships with their teachers and peers.  EL students and their parents have credited the district’s individualized programs and the dedication of EL teachers in furthering the students’ progress.

“We commend the Mercer County School District for successfully implementing the settlement agreement and for showing dedication and care to its English Learner students and their families,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “We hope other rural districts with growing EL populations will learn from Mercer County’s positive example and significant progress.”

The EEOA requires state and local education agencies to take appropriate action to overcome language barriers that impede students’ equal participation in instructional programs.  Enforcement of the EEOA is a top priority of the Civil Rights Division.  Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.

James Powers, 59, of Washington, D.C., pleaded guilty today to violating the Clean Air Act for his role in a scheme to improperly remove asbestos from a historic building in the District of Columbia.

The guilty plea, in the U.S. District Court for the District of Columbia, was announced by Assistant Attorney General John C. Cruden, head of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Channing D. Phillips of the District of Columbia and Acting Special Agent in Charge Jennifer Lynn of the Environmental Protection Agency’s (EPA) criminal enforcement program in the Mid-Atlantic States. 

Asbestos, a once-popular fireproofing insulation, is now known to cause lung cancer, asbestosis and mesothelioma in people who inhale the fibers released when asbestos is disturbed.  Congress has determined that there is no safe level of exposure to asbestos.  The Clean Air Act requires that renovation in asbestos-containing properties follow specific protocols designed to safely remove asbestos from the property prior to any renovation or demolition activity, so as not to expose workers to the risk of deadly respiratory diseases.

“Our nation’s Clean Air Act requires strict adherence to the practices that protect the public from exposure to asbestos and includes criminal liability for those who do not comply with the law,” said Assistant Attorney General Cruden.  “This prosecution is part of the Justice Department’s continuing commitment to protect the public and workers who are particularly vulnerable to harm from irresponsible, unsafe and illegal practices in the work place.” 

“James Powers put a work crew and the public at risk by not taking the proper steps to safely renovate a building containing asbestos,” said U.S. Attorney Phillips.  “The Clean Air Act specifically establishes standards for the safe handling of this dangerous material.  This prosecution holds this businessman accountable for his recklessness and shows we will enforce laws that protect the health and safety of workers and citizens in the District of Columbia.”

“Exposure to asbestos poses serious risks to public health and our communities, so it’s imperative that it be handled properly and disposed of safely,” said Acting Special Agent in Charge Lynn.  “This case demonstrates EPA and its law enforcement partners will hold accountable those who put the public at risk through unsafe practices.”

The development project at issue involved renovating the historic Friendship House, located at 619 D Street SE in Washington, D.C., into condominiums, a development known as the Maples.  According to a statement of offense submitted as part of the guilty plea, in March 2010, Powers formed a partnership with a local real estate development firm to purchase and renovate the property.  An asbestos survey of the property documented asbestos throughout the property, including in floor tiles, wall board and pipe insulation.

After the survey, the partnership received bids from licensed professional asbestos abatement and renovation firms in the area.  Despite knowing that the building contained asbestos, Powers hired Larry Miller, 58, of Palmetto, Georgia, a general contractor from Atlanta with no training, certification, or experience in asbestos abatement, to conduct interior demolition and renovation of the building.  The written contract with Miller specifically excluded removal of asbestos from the property.  Powers told Miller that the asbestos would be abated by another contractor after Miller’s work and did not fully inform Miller about the extent of asbestos in the property.  Powers represented to his partners that a qualified entity would conduct appropriate asbestos abatement at the property. He emailed them a proposed asbestos abatement contract from a corporation that, unbeknownst to his partners, was simply an alter-ego for Powers.

During the period between August 2011 and October 2011, according to the statement of offense, Miller and his crew of workers conducted interior demolition at the Maples, without any asbestos abatement having occurred as required under the Clean Air Act.  Powers also contracted with a waste disposal company to haul construction debris from the Maples off-site.  Powers failed to inform the waste disposal company that the construction debris contained asbestos and the debris was not taken to a site qualified to receive asbestos waste.

Even after an inspection by local environmental authorities revealed asbestos in the building, Powers had Miller and his crew members proceed with demolition.  Over the course of the project, the workers disturbed substantial quantities of asbestos, exposing themselves to a substantial risk of serious illness later in life.

U.S. District Judge Amy Berman Jackson for the District of Columbia scheduled sentencing for Dec. 16.  The charge carries a statutory maximum of five years in prison and potential financial penalties.

Miller pleaded guilty on Nov. 19, 2015, to one count of negligent endangerment under the Clean Air Act.  He is awaiting sentencing in the U.S. District Court for the District of Columbia.  The charge carries a maximum sentence of not more than one year of imprisonment, a fine of up to $100,000 and a term of supervised release and/or probation.

After the acts described in the statement of offense, a licensed asbestos abatement firm conducted abatement at the Maples.  The District of Columbia Department of the Environment subsequently conducted inspections and found the property to be free of all asbestos-containing materials.

In announcing the plea, Assistant Attorney General Cruden, U.S. Attorney Phillips and Acting Special Agent in Charge Lynn expressed appreciation for the work performed by Special Agents from EPA and the Department of Transportation.  They also acknowledged the efforts of Trial Attorney Cassandra J. Barnum and Paralegal Specialist Cynthia Longmire of the Environmental Crimes Section and those who worked on the case at the U.S. Attorney’s Office, including Paralegal Specialists Kaitlyn Krueger, former Paralegal Specialists Krishawn Graham and John Lowell and former Assistant U.S. Attorney Jonathan Hooks and Assistant U.S. Attorneys Virginia Cheatham and Zia Faruqui.

U.S. Healthcare Supply LLC and Oxford Diabetic Supply Inc. and the two owners and presidents of those companies have agreed to pay the United States more than $12.2 million to resolve allegations that they violated the federal False Claims Act by using a fictitious entity to make unsolicited telephone calls to Medicare beneficiaries in order to sell them durable medical equipment, the U.S. Department of Justice announced.  U.S. Healthcare Supply LLC, based in Milford, New Jersey, has agreed to pay more than $5 million, and Jon P. Letko, its owner and president, has agreed to pay more than $1 million.  His brother, Edward J. Letko, the owner and president of Oxford Diabetic Supply Inc., a medical equipment supplier that allegedly also participated in the scheme, has agreed to pay $6 million plus interest. 

“We will continue to hold health care providers accountable for attempting to circumvent Medicare statutes and regulations that help prevent the submission of claims for medically unnecessary services and supplies,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “Arrangements which clearly disregard program requirements in order to enhance the financial interests of health care providers will not be tolerated.”

“Cold-calling people to sell them expensive medical equipment is prohibited for a reason: unsuspecting patients shouldn’t be coerced into making medical decisions about devices and equipment – which they may not even need – on the basis of a sales pitch,” said U.S. Attorney Paul J. Fishman for the District of New Jersey.

The settlement announced today resolves allegations that U.S. Healthcare Supply LLC and Oxford Diabetic Supply Inc. set up and controlled an entity called Diabetic Experts Inc., which they used to make unsolicited telephone calls to Medicare beneficiaries in order to sell them durable medical equipment.  The companies submitted claims to Medicare for the equipment that they sold based on these unsolicited calls.  This conduct violated the Medicare Anti-Solicitation Statute. 

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $30.5 billion through False Claims Act cases, with more than $18.4 billion of that amount recovered in cases involving fraud against federal health care programs.

This case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of New Jersey and the U.S. Department of Health and Human Services’ Office of the Inspector General.  The claims resolved by the settlement are allegations only and there has been no determination of liability.

A Greenville, Texas, resident pleaded guilty today to one count of aiding and assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney John R. Parker for the Northern District of Texas. 

According to documents filed with the court, Lourdes Ramirez, 39, was a tax return preparer operating under the names TX ASAP Tax Services and Fiesta Tax Service in Greenville.  Ramirez admitted that from at least 2011 through 2014, she willfully prepared and filed individual income tax returns for clients that reported materially false information, including false business income and losses, false credits and false deductions in order to produce fraudulently inflated refunds.  Ramirez prepared approximately 1,163 tax returns and caused an intended tax loss to the United States of approximately $1,155,383.

Ramirez is scheduled to be sentenced on Dec. 21.  She faces a statutory maximum sentence of three years in prison, as well as a term of supervised release and monetary penalties.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Parker commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation and Trial Attorneys Melanie A. Smith and Alexander R. Effendi of the Tax Division, who are prosecuting this case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

A federal grand jury sitting in Charlotte, North Carolina, returned an indictment on Aug. 16, which was unsealed today, against a Monroe, North Carolina, resident charging him with one count of attempting to interfere with the due administration of the internal revenue laws and five counts of filing a false income tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.

According to the indictment, between approximately October 2007 through at least September 2011, Billy D. Floyd attempted to obstruct and impede the due administration of the internal revenue laws by filing numerous false Internal Revenue Service (IRS) Forms 1040X, Amended Individual Income Tax Returns, in an attempt to reduce his tax liability to zero.  The indictment further alleges that Floyd submitted fictitious “Surety Bonds” to the IRS that falsely purported to satisfy his outstanding tax liabilities.  Floyd also attempted to disrupt the public sale of property that the IRS previously seized by attempting to intimidate IRS employees conducting the sale as well as potential buyers.  Following the termination of the public sale due to his actions, Floyd also filed a lien against the property in an effort to encumber it and prevent any sale by the IRS.

If convicted, Floyd faces a statutory maximum sentence of three years in prison for each count in the indictment.  He also faces a term of supervised release and monetary penalties.

An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorney Gregory Bailey of the Tax Division, who is prosecuting the case.         

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

Department Will Continue to Carefully Monitor ABI’s Compliance with Distribution Obligations and Competitive Effects of ABI’s Craft Acquisitions

Deputy Assistant Attorney General Juan Arteaga of the Justice Department’s Antitrust Division released the following statement today on the division’s decision to close its investigation into Anheuser-Busch InBev’s (ABI) acquisition of Virginia-based craft brewer, Devils Backbone.

“Over the past 30 years, the American beer industry has experienced a renaissance that has resulted in the most diverse, innovative and dynamic brewing culture in the world.  This revival of the U.S. beer industry – an industry in which millions of Americans spend over $100 billion per year – is largely due to the hard work and growth of craft and other high-end brewers, which have provided consumers with a large number of new and high quality beer options.

“In addition to enhancing the diversity and quality of beer sold in the U.S., high-end brewers have served as an important constraint on the ability of large brewers – such as ABI and MillerCoors – to raise the prices on their premium beers.  High-end beers such as craft beers constrain the ability of ABI and MillerCoors to continue to raise the prices on their beers because consumers are increasingly willing to trade-up from premium to high-end beers if the prices for premium brands come too close to the prices of high-end brands.  

“In recent years, the division has successfully fought to preserve the competitive role that high-end brewers play in the U.S. beer industry.  In 2013, for example, the division sued to challenge ABI’s acquisition of Mexican brewer Grupo Modelo, which resulted in the companies’ agreeing to divest Grupo Modelo’s entire U.S. business – including the rights to sell popular beer brands such as Corona and Pacifico in the U.S. – to an independent competitor.  Since this divesture, these popular beer brands have continued to grow and vigorously compete for the hard earned dollars of consumers. 

“Earlier this year, the division approved ABI’s acquisition of SABMiller only after ABI agreed to divest SABMiller’s entire U.S. business – including SABMiller’s ownership interest in MillerCoors – and to cease business practices and programs that restrict the ability and incentive of independent beer distributors to sell and promote the beers of ABI’s rivals.  The division insisted on ABI’s agreement to distribution-related relief because craft and other brewers cannot grow in scale and effectively compete in the U.S. beer industry without meaningful access to efficient beer distribution networks, such as the network that distributes ABI beer.

“After careful consideration, the division has determined that, in light of the distribution relief secured in the ABI/SABMiller settlement, the competitive implications of ABI’s acquisition of Devils Backbone are too uncertain at this time to warrant further investigation.  However, the division will be carefully monitoring ABI’s compliance with its distribution obligations under this settlement.  The division will also carefully scrutinize any future craft acquisitions by ABI.  The ABI/SABMiller settlement provides the division the opportunity to review certain of ABI’s future craft acquisitions – including acquisitions that may fall below the Hart-Scott-Rodino Act’s reporting thresholds. 

“In reviewing any such future acquisitions, the division will consider whether these transactions, either singularly or collectively, are likely to harm competition by, among other things, giving ABI the ability to prevent its craft rivals from effectively getting their products to the market or the ability to increase high-end beer prices which, in turn, would enhance ABI’s ability to raise prices in the premium and sub-premium beer segments.  If the division sees evidence that ABI may be circumventing its distribution obligations or has used multiple craft acquisitions to impair competition, it will consider all its enforcement options – including re-opening its investigation of ABI’s acquisition of Devils Backbone – and all appropriate relief.”

On Tuesday, September 6th, INTERPOL Washington officially joined the world of social media. The launch of the official USNCB Twitter account at https://twitter.com/INTERPOL_USA marks a new phase in expanding our communications tools. We encourage you to "follow us" to stay up to date with the latest INTERPOL Washington news.

A federal jury in Greenville, North Carolina, has convicted Oceanic Illsabe Limited, Oceanfleet Shipping Limited and two of their employees of violating the Act to Prevent Pollution from Ships (APPS), obstruction of justice, false statements, witness tampering and conspiracy, announced Assistant Attorney General John C. Cruden, head of the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina.  Oceanic Illsabe Limited is the owner of the M/V Ocean Hope, a large cargo vessel that was responsible for dumping tons of oily waste into the Pacific Ocean last year.  Oceanfleet Shipping Limited was the managing operator of the vessel.  Both companies operate out of Greece.  Also convicted at trial were two senior engineering officers who worked aboard the vessel, Rustico Ignacio and Cassius Samson.  The jury convicted on each of the nine counts in the indictment.

The operation of marine vessels, like the M/V Ocean Hope, generates large quantities of oil sludge and oil-contaminated waste water.  International and U.S. law require that these vessels use pollution prevention equipment, known as an oil-water separator, to preclude the discharge of these materials.  Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard.  The evidence presented to the jury showed that in June 2015, the vessel discharged around ten metric tons of sludge into the ocean.  The vessel was also regularly pumping contaminated water directly overboard.  None of these discharges were disclosed as required.

“Our office was pleased to partner with the Department of Justice’s Environment and Natural Resources Division in this significant case,” said U.S. Attorney Bruce.  “We will continue to vigorously enforce federal laws designed to prevent the pollution of the world’s oceans.”

“While the vast majority of vessel owners, operators, and crews who do business in the United States follow our environmental laws, every year, a few unscrupulous commercial mariners obstruct justice in an attempt to hide from the Coast Guard the intentional discharge of large quantities of pollutants into the oceans,” said Rear Admiral Meredith Austin, commander of the Fifth Coast Guard District.  “Coast Guard Marine Inspectors and the Coast Guard Investigative Service, in concert with the Department of Justice, will continue to aggressively investigate and prosecute those who do this.”

The evidence presented during the nine-day trial demonstrated that the companies were aware that the ship had not offloaded any oil sludge from the vessel since September 2014 and that the ship rarely used its oil-water separator.  Instead, the vessel’s second engineer, Samson, ordered crewmembers to connect what is known in the industry as a “magic pipe” to bypass the vessel’s oil-water separator and pump oil sludge overboard.  In addition, crewmembers were ordered to pump oily water from the vessel’s bilges directly into the ocean up to several times per week.  The dumping occurred with the knowledge and approval of the ship’s chief engineer,  Ignacio.  Finally, the engineers used a tank designated for oily wastes to store diesel fuel for sale on the black market.

Upon arriving at the Port of Wilmington, Oceanic, Oceanfleet, Ignacio and Samson attempted to hide these discharges by presenting a false and fictitious oil record book to U.S. Coast Guard inspectors.  When inspectors uncovered evidence of dumping, the defendants ordered lower-level crewmembers to lie to Coast Guard personnel.  Samson also made several false statements to a Coast Guard inspector regarding the bypass of the oil-water separator.

At the conclusion of trial, defendants Oceanic and Oceanfleet were convicted of one count of conspiracy, one count of violating APPS, two counts of obstruction of justice, one count of false statements and four counts of witness tampering.  Ignacio was convicted of one count of conspiracy, one count of violating APPS, one count of obstruction of justice and two counts of witness tampering.  Samson was convicted of one count of conspiracy, one count of violating APPS, two counts of obstruction of justice, one count of false statements and three counts of witness tampering.  The companies could be fined up to $500,000 per count, in addition to other possible penalties.  Ignacio and Samson face a maximum penalty of 20 years in prison for the obstruction of justice charges.

This case was investigated by the U.S. Coast Guard Sector North Carolina, the Coast Guard Investigative Service and U.S. Coast Guard District Five.  Civil Chief Norman Acker and Assistant U.S. Attorney Michael Anderson of the U.S. Attorney’s Office for the Eastern District of North Carolina provided additional expertise and assistance with the pretrial phase of the case.  The attorneys prosecuting the case were Senior Trial Attorney Kenneth Nelson and Trial Attorney Brendan Selby, of the Department of Justice’s Environmental Crimes Section and Banu Rangarajan of the U.S. Attorney’s Office for the Eastern District of North Carolina.  

Nexstar Must Divest Seven Broadcast Television Stations in Six Markets to Upfront Buyers Approved by the Department

The Department of Justice announced today that it will require Nexstar Broadcasting Group to divest seven broadcast television stations in order to proceed with its $4.6 billion acquisition of Media General Corporation.  The department said that without the required divestitures, the prices for broadcast television spot advertising and the fees charged to multichannel video programming distributors (MVPDs) – such as cable and satellite providers – for the retransmission of broadcast television programming to MVPD subscribers would likely increase in six designated market areas (DMAs) located across the United States.

The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court of the District of Columbia to block the proposed transaction and simultaneously filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.

“As originally structured, this transaction would have given Nexstar the power to impose higher prices on local and national advertisers and to demand higher retransmission fees from cable and satellite companies in six markets,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division.  “Today’s settlement will protect advertisers, MVPDs and consumers – who ultimately would have borne many of these increased costs – by ensuring that Nexstar does not obtain undue bargaining leverage when negotiating broadcast television spot advertising prices and retransmission fees.”

The department’s complaint alleges that the proposed transaction would lessen competition in the sale of broadcast television spot advertising and the licensing of broadcast television programming to MVPDs for retransmission to MVPD subscribers in the following DMAs:  Roanoke-Lynchburg, Virginia; Terre Haute, Indiana; Fort Wayne, Indiana; Green Bay-Appleton, Wisconsin; Lafayette, Louisiana; and Davenport, Iowa/Rock Island-Moline, Illinois (“Quad Cities”).  As a result of the acquisition, Nexstar would control between 41 and 100 percent of the broadcast television station gross advertising revenues in these six DMAs and at least two broadcast television stations affiliated with the four major national television networks.

Under the terms of the proposed settlement, Nexstar must divest the following television stations to the following acquirers or other acquirers approved by the United States:  WBAY-TV, in Green Bay, to Gray Television Inc.; WSLS-TV, in Roanoke-Lynchburg, to Graham Holdings Company; KADN-TV and KLAF-LD, in Lafayette, to Bayou City Broadcasting Lafayette Inc.; WTHI-TV, in Terre Haute, to USA Television MidAmerica Holdings Inc.; WFFT-TV, in Fort Wayne, to USA Television; and KWQC-TV, in Quad Cities, to Gray Television.

Nexstar is a Delaware corporation with its headquarters in Irving, Texas.  Nexstar owns, operates or services broadcast television stations in 62 metropolitan areas.  Nexstar reported net operating revenues of over $890 million in 2015.

Media General is a Virginia corporation with its headquarters in Richmond, Virginia.  Media General owns, operates or services broadcast television stations in 48 metropolitan areas.   Media General reported net operating revenues of $1.3 billion in 2015.

As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register.  Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Owen Kendler, Assistant Chief, Litigation III Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Fourth Floor, Washington, D.C. 20530.  At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.

Nexstar-Media General CIS 

Nexstar-Media General Complaint

Nexstar-Media General Explanation

Nexstar-Media General Hold Separate

Nexstar-Media General PFJ

The Justice Department and the Ministry for Foreign Affairs of the United Mexican States established a formal partnership today to protect workers from discrimination based on citizenship, immigration status and national origin.  Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and Mexican Ambassador Carlos Sada signed a memorandum of understanding (MOU) between the embassy and its consulates, and the division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC).

As part of the MOU, OSC and the Mexican government will collaborate to educate workers about their employment rights and provide them with the resources needed to protect those rights.  The MOU also seeks to promote training for employers on their obligations under the anti-discrimination provision of the Immigration and Nationality Act (INA), which prohibits employment discrimination based on citizenship, immigration status and national origin.  Specifically, the MOU provides that:

• OSC will train Mexican consular staff on the anti-discrimination provision of the INA, participate in events organized by Mexican consulates to educate workers and employers and distribute educational materials to the embassy and its consulates.
• The embassy will establish a system for referring discrimination claims from the embassy and consulates to OSC.

“The Mexican government plays a vital role in helping the Justice Department ensure workers know about their rights and the protections the law provides,” said Principal Deputy Assistant Attorney General Gupta.  “Mexico has taken a leading role in Labor Rights Week, ensuring that workers in Mexico and throughout the world know about their rights in the workplace and where to access help and support.  I thank our Mexican counterparts for their collaborative partnership in our shared mission to empower workers and combat discrimination.”

In the last year, the department has also established formal partnerships with Ecuador and El Salvador to empower and educate work-authorized individuals from those nations.

OSC is responsible for enforcing the anti-discrimination provision of the INA.  Among other things, this law prohibits citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; discrimination in the employment eligibility verification process; retaliation and intimidation.  In addition to its enforcement work, OSC educates the public on its rights and responsibilities under the INA’s anti-discrimination provision.

For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit OSC’s website.

Mexico MOU

mexico_memorandum_de_entendimiento.pdfWASHINGTON – El Departamento de Justicia y el Ministerio de Asuntos Exteriores de los Estados Unidos Mexicanos establecieron una asociación formal hoy para proteger a trabajadores de discriminación por motivos de ciudadanía, estatus migratorio o nacionalidad de origen. La Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, Jefa de la División de Derechos Civiles del Departamento de Justicia, y el Embajador de México Carlos Sada firmaron un Memorándum de Entendimiento (MOU, por sus siglas en inglés) entre la embajada y sus consulados y la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con la Inmigración (OSC, por sus siglas en inglés), de la División.

Como parte del MOU, la OSC y el gobierno mexicano colaborarán para educar a trabajadores acerca de sus derechos laborales y proveerles los recursos necesarios para proteger tales derechos. Asimismo, el MOU busca promover la formación de empleadores en lo que se refiere a sus obligaciones en virtud de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés), la que prohíbe la discriminación laboral por motivos de ciudadanía, estatus migratorio o nacionalidad de origen. En concreto, el MOU establece lo siguiente:

• La OSC brindará capacitación al personal consular mexicano acerca de la disposición antidiscriminatoria de la INA, participará en eventos organizados por los consulados mexicanos para educar a trabajadores y empleadores y distribuirá materiales educativos a la embajada y sus consulados.

• Por su parte, la embajada establecerá un sistema para referir demandas de discriminación recibidas en la embajada y sus consulados a la OSC.

“La ayuda que el gobierno mexicano extiende al Departamento de Justicia para asegurar que los trabajadores conozcan sus derechos y las protecciones que la ley ofrece hace que este desempeñe un papel crítico en el proceso,” declaró la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta.  “México ha tomado las riendas de la Semana de Derechos Laborales al garantizar que trabajadores en México, así como por todo el mundo, conozcan sus derechos en el lugar de trabajo y sepan cómo acceder a apoyo y ayuda. Estoy muy agradecida a nuestros homólogos mexicanos por su asociación colaborativa en nuestra misión compartida de empoderar a trabajadores y combatir la discriminación.”

Durante el último año, el Departamento también ha formado asociaciones formales con Ecuador y El Salvador con el fin de empoderar y educar a individuos de dichas naciones que cuenten con autorización para trabajar.

La OSC es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad de empleo; las represalias y la intimidación. Aparte de su trabajo de ejecución, la OSC informa al público de sus derechos y responsabilidades al amparo de la disposición antidiscriminatoria de la INA.

Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la OSC para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la OSC.

Caused Loss of More Than $9 Million

A Pollock Pines, California, woman who owned a tax return preparation business and two of her employees, pleaded guilty to charges related to filing more than 250 false claims for refund, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and Acting U.S. Attorney Phillip A. Talbert for the Eastern District of California.

Teresa Marty, 56, the owner of Advanced Financial Services (AFS), a Placerville, California, tax return preparation business, pleaded guilty today to conspiring to file false claims for refund and conspiring to defraud the Internal Revenue Service (IRS).  On Aug. 24, Pamela Harris, Marty’s office manager, and Rebecca Bandera-Marty, a California certified tax return preparer, also pleaded guilty to one count of conspiring to file false claims.  Marty, Harris and Bandera-Marty were indicted in June 2013 along with two other co-defendant clients, Charles and Victoria Tingler.  The Tinglers pleaded guilty to filing false claims in the spring of 2015 and will be sentenced in November.

“Income tax returns are not a vehicle to siphon public funds for personal benefit,” said Principal Deputy Assistant Attorney General Ciraolo.  “Those individuals, like Teresa Marty, Pamela Harris and Rebecca Bandera-Marty, who promote and facilitate these types of refund fraud schemes should know that the department, along with its partners in law enforcement, are committed to investigating and prosecuting such abuses.”

Marty, Harris and Bandera-Marty admitted that they conspired to file false individual income tax returns claiming more than $60 million in false federal income tax refunds.  Marty and Harris recruited clients by falsely representing that the clients could legally receive sizable tax refunds by filing tax returns with IRS Forms 1099-OID.  AFS prepared false Forms 1099-OID that reported an amount equal to the clients’ debts as income and the same amount as income tax withheld, resulting in significant income tax refunds to which the clients were not entitled.  The scheme included clients from 26 states and caused the IRS to pay out over 40 tax refunds, totaling more than $9 million.  The IRS listed the use of false Forms 1099-OID on its website as one of the “dirty dozen” tax schemes for the years 2009 through 2014.

Marty also admitted that she and the Tinglers, with the help of Harris, filed multimillion dollar liens against government officials, including three IRS employees involved in the collection of taxes the defendants owed the IRS as a result of participating in the scheme.  Marty filed $84 million liens against the then Acting U.S. Attorney for the Eastern District of California and a former Department of Justice Tax Division attorney involved in filing suit to permanently enjoin Marty and AFS from preparing tax returns.  The liens that were filed with the California Secretary of State unlawfully disclosed personal identification information of the government employees.  Harris and Marty also engaged a commercial collection agency to collect one of the three false liens that Charles Tingler filed against an IRS revenue officer in the amount of $500,000.

“From her office in the Sierra Foothills, Marty traveled around the country to promote a preposterous theory that taxpayers could somehow use IRS forms to claim refunds based on their own private debts,” said Acting U.S. Attorney Talbert.  “As Marty, Harris, Bandera-Marty and others have now admitted, this was just a criminal scheme to make false claims to loot the U.S. Treasury.  I’m proud of the government employees who worked diligently to put an end to this even after criminal schemers retaliated against them personally.”

“The defendants used their knowledge to exploit vulnerabilities in the tax system,” said Special Agent in Charge Michael T. Batdorf for IRS-Criminal Investigation.  “Marty and her co-defendants recruited clients for their tax fraud scheme by falsely representing that they could eliminate their debts and legally receive sizable tax refunds by submitting tax returns with IRS Forms 1099-OID.  Taxpayers should not be taken in by false descriptions of the law or misrepresentations of the facts.  As the old adage goes - if it sounds too good to be true, it probably is.”

“Tax preparers who file false returns with the IRS are not only violating the law and stealing from taxpayers, but violating the trust placed in them by their clients,” said Special Agent in Charge Rod Ammari for the Treasury Inspector General for Tax Administration.  “When these same tax preparers then file fraudulent and illegal liens against IRS employees, with the intent to intimidate them from doing their jobs, their actions are doubly heinous.”

Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing the false claims for refund prepared by Marty and AFS.

Marty is scheduled to be sentenced on Jan. 4, 2017.  She faces a maximum sentence of 15 years in prison, a term of supervised release and monetary penalties.  Bandera-Marty is scheduled to be sentenced on Nov. 16, and Harris is scheduled to be sentenced on Jan. 4, 2017.  They each face a maximum sentence of 10 years in prison, a term of supervised release and monetary penalties.

Principal Deputy Assistant Attorney General Ciraolo and Acting U.S. Attorney Talbert commended special agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration, who conducted the investigation and Trial Attorneys Erin S. Mellen and Andrea A. Kafka of the Tax Division and Assistant U.S. Attorney Matthew D. Segal, who prosecuted the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

A Kings Mountain, North Carolina, man, who set up straw companies to evade income taxes and used cash from his business to build an underground bunker, pleaded guilty today to tax evasion and possession of an unregistered firearm, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Jill Westmoreland Rose for the Western District of North Carolina.  

According to documents filed with the court, Reuben T. DeHaan ,44, owned a holistic medicine business, which he operated out of his residence in Kings Mountain under the names Health Care Ministries International Inc. and Get Well Stay Well.  DeHaan admitted that, with the help of others, he set up straw companies and opened bank accounts in the name of the straw companies to hide his income and assets from the Internal Revenue Service (IRS).  DeHaan also admitted to dealing extensively in cash to evade the payment of income tax.  During the years 2008 through 2014, DeHaan earned more than $2.7 million in gross receipts from his holistic medicine business, but failed to file income tax returns for those years and evaded approximately $740,000 in income taxes due and owing.

In addition to the tax evasion charge, DeHaan also admitted to possessing a short barrel rifle and two silencers that were not registered to him in the National Firearms Registration and Transfer Record.

A sentencing date has not yet been scheduled.  DeHaan faces a statutory maximum sentence of five years in prison for the tax evasion charge and ten years in prison for the unregistered firearm charge, as well as a term of supervised release, and monetary penalties.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rose commended special agents of IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Assistant U.S. Attorney Michael Savage and Trial Attorney Mara Strier 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.

Acquisition Would Eliminate Deere’s Only Effective Competitor in High-Speed Precision Planting Systems Market

The Department of Justice filed a civil antitrust lawsuit today seeking to block Deere & Company’s proposed acquisition of Precision Planting LLC from Monsanto Company in order to preserve competition in the market for high-speed precision planting systems in the United States.

The Antitrust Division’s lawsuit alleges that the transaction would combine the only two significant U.S. providers of high-speed precision planting systems – technology that is designed to allow farmers to plant crops accurately at higher speeds.  The acquisition would deny farmers throughout the country the benefits of competition that has spurred innovation, improved quality and lowered prices.  The department filed its lawsuit in the U.S. District Court for the Northern District of Illinois.

“High-speed precision planting technology holds out the promise of improved yields for American farmers by enabling them to plant crops more accurately at higher speeds,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division.  “Precision Planting has been a key innovator in high-speed precision planting and Deere’s only significant competitor in developing and selling these technologies.  If this deal were allowed to proceed, Deere would dominate the market for high-speed precision planting systems and be able to raise prices and slow innovation at the expense of American farmers who rely on these systems.”

High-speed precision planting is an innovative technology that enables farmers to plant corn, soybeans and other row crops at up to twice the speed of a conventional planter without sacrificing accuracy.  Planting at higher speeds can be highly valuable to farmers, many of whom have a limited window each year to plant their crops to achieve the highest crop yields.  As a result, Deere and Precision Planting view high-speed precision planting as “revolutionary technology” that represents a “True Gamechanger for Agriculture” and expect it to become the industry standard in the coming years.

According to the department’s complaint, Deere and Precision Planting are the only two effective competitors in high-speed precision planting, conservatively accounting for at least 86 percent of the market.  Deere and Precision Planting both introduced their respective high-speed planting systems in 2014, after years of research and development.  The complaint details how the intense head-to-head competition between Deere and Precision Planting since that time has directly benefitted farmers through aggressive discounts and promotions, lower prices and innovative product offerings.   The complaint alleges that Deere’s proposed acquisition of the company it has described as its “number one competitor” would allow it to control nearly every method through which American farmers can acquire effective high-speed precision planting systems and provide it with the ability to set prices, output, quality and product features without the constraints of market competition. 

Deere & Company, a Delaware corporation headquartered in Moline, Illinois, is the largest manufacturer of planting equipment in the United States, including its ExactEmerge high-speed precision planting system.  In 2015, Deere’s U.S. sales for planter-related equipment were approximately $900 million.

Precision Planting LLC is a Delaware limited liability company headquartered in Tremont, Illinois.  It is a leading innovator in planting equipment, including its SpeedTube high-speed precision planting system.  In 2015, Precision Planting’s U.S. sales for planter-related equipment were approximately $100 million.

Monsanto Company is a Delaware corporation headquartered in St. Louis, Missouri.  Monsanto is a leading global provider of agricultural products and is the ultimate parent company of Precision Planting LLC.    

Deere-Monsanto Complaint

The Justice Department filed a lawsuit today against two St. Louis landlords, Hezekiah and Jameseva Webb, alleging that they violated the Fair Housing Act by subjecting female tenants in their rental properties to sexual harassment and retaliation.

The lawsuit, which arose from a U.S. Department of Housing and Urban Development (HUD) complaint, was filed in the U.S. District Court for the Eastern District of Missouri.  It alleges that Hezekiah Webb, who served as property manager for the Webbs’ rental properties, sexually harassed female tenants at their properties.  The complaint alleges that such harassment included conditioning housing or housing benefits on female tenants’ agreement to engage in sexual acts; coercing female tenants to engage in unwelcome sexual acts; subjecting female tenants to unwanted sexual touching and other unwanted sexual acts; making unwelcome sexual comments and advances to female tenants and taking adverse actions against female residents when they refused the sexual advances.

“No woman should ever suffer from threats, violence or harassment in her home,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “The Justice Department works vigorously to enforce the Fair Housing Act by vindicating the civil rights of tenants so that all people can live in their homes and feel safe, protected and free.”

“Unwanted sexual advances or harassment make it impossible for a woman to feel safe in her home,” said Gustavo F. Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity.  “HUD will continue to work with the Department of Justice to protect women from this type of unlawful treatment.”

The suit seeks monetary damages to compensate the victims, civil penalties and a court order barring future discrimination.

The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.  Individuals who believe that they may have been victims of housing discrimination at one of the Webbs’ properties, or elsewhere, can contact the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.  More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.

Webb Complaint

 Today, the President granted commutation of sentence to the following 111 individuals:

·         Malik Abuhamid Ibm Wakil Abdunafi – Baltimore, MD
Offense: Conspiracy to distribute and possess with intent to distribute at least 500 grams of cocaine, at least 50 grams of cocaine base (crack), heroin, and marijuana; distribution of cocaine and cocaine base (crack); distribution of heroin; possession with intent to distribute more than 500 grams of cocaine, at least five grams of cocaine base (crack), heroin, and marijuana; Middle District of Pennsylvania
Sentence: 240 months' imprisonment; 10 years' supervised release; $100,000 forfeiture (August 31, 2007)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016, and obligation and payment of forfeiture remitted.  

·         Quentin C. Adams – St. Louis, MO
Offense: Conspiracy to distribute cocaine base; possession with intent to distribute cocaine base (two counts); distribution of cocaine base; Western District of Missouri
Sentence: Life imprisonment; eight years' supervised release (June 15, 2005)

Commutation Grant: Prison sentence commuted to a term of 262 months' imprisonment.

·         Sly Stallone Aikens – Hickory Grove, SC
Offense: Knowingly using and carrying a firearm during and in relation to, and possessing the firearm in furtherance of, a drug trafficking crime (two counts); District of South Carolina
Sentence: 360 months' imprisonment; five years' supervised release (April 29, 2005); amended to 235 months' imprisonment (September 28, 2006)

Commutation Grant: Prison sentence commuted to a term of 180 months' imprisonment.

·         Michael Alexander – Charlotte, NC
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base; Western District of North Carolina
Sentence: 240 months' imprisonment; 10 years' supervised release (October 23, 2006)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Alfonso Allen – Miami, FL
Offense: Conspiracy to distribute 50 grams or more of cocaine base; distribution of cocaine base (two counts); possession with intent to distribute cocaine, cocaine base and marijuana; possession of a short barreled shotgun in furtherance of a felony drug offense; possession of a firearm by a convicted felon; possession of an unregistered short barreled shotgun; Southern District of Florida
Sentence: Life plus 10 years’ imprisonment; 10 years' supervised release (August 25, 2009)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.

·         Brian Allen Altman – New Berlin, WI
Offense: Conspiracy to distribute 500 grams or more of methamphetamine; possession of a firearm in furtherance of a drug trafficking crime (two counts); Western District of Virginia
Sentence: 480 months' imprisonment; five years' supervised release (February 23, 2007)

Commutation Grant: Prison sentence commuted to a term of 180 months' imprisonment.

·         Maurice D. Ball –Kansas City, MO

Offense: Possession with intent to distribute cocaine base; Western District of Missouri
Sentence: 262 months' imprisonment; eight years' supervised release (June 22, 2007)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         John Franklin Banks – Lynchburg, VA
Offense: Continuing criminal enterprise; Western District of Virginia
Sentence: Life imprisonment; five years' supervised release; $250 fine (January 14, 2000 (on remand))

Commutation Grant: Prison sentence commuted to a term of 292 months' imprisonment.

·         Mancer L. Barrington, III – Norfolk, VA
Offense: Conspiracy to distribute and possess with intent to distribute cocaine and cocaine base; possession with intent to distribute cocaine; Eastern District of Virginia
Sentence: Life imprisonment; 10 years' supervised release (January 7, 2009)

Commutation Grant: Prison sentence commuted to a term of 180 months' imprisonment.

·         Tyrie Bell – Sauk Village, IL
Offense: Possession of a controlled substance with intent to distribute; Northern District of Illinois
Sentence: 360 months' imprisonment; eight years' supervised release; $500 restitution (January 19, 2000)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Ronald Owen Bilbrey, Jr.  – Winter Haven, FL
Offense: Conspiracy to traffic in controlled substances; possession with intent to distribute methamphetamine (two counts); attempted possession with intent to distribute methamphetamine; possession with intent to distribute cocaine; possession with intent to distribute methamphetamine; distribution of methamphetamine (three counts); possession of ephedrine with intent to manufacture methamphetamine; Middle District of Florida
Sentence: 360 months' imprisonment; five years' supervised release (April 25, 1996)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Tremayne Kendrick Blackwell – Charlotte, NC
Offense: Conspiracy to possess with intent to distribute quantities of cocaine and cocaine base; Western District of North Carolina
Sentence: Life imprisonment; 10 years' supervised release (February 18, 2009); amended to 240 months' imprisonment (November 3, 2015)

Commutation Grant: Prison sentence commuted to a term of 180 months' imprisonment.

·         Corey Lyndell Blount – Houston, TX
Offense: Use of a communication facility in facilitating the commission of felonies under the Controlled Substance Act; continuing criminal enterprise; Western District of Louisiana
Sentence: Life imprisonment; five years' supervised release (October 27, 1999)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.

·         Ronald Lee Blount, Jr. – Houston, TX
Offense: Conspiracy to possess with intent to distribute cocaine; use of a communication facility in facilitating the commission of felonies under the Controlled Substance Act; Western District of Louisiana
Sentence: Life imprisonment; 10 years' supervised release (July 9, 1999)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Jerome Lee Borders – Statesville, NC
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base; conspiracy to commit money laundering; Western District of North Carolina
Sentence: Life imprisonment; five years' supervised release (May 6, 2002 )

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

·         Brad Bradley Bradford – Tampa, FL
Offense: Possession with intent to distribute cocaine; Middle District of Georgia
Sentence: 180 months' imprisonment; three years' supervised release (November 6, 2008)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment.

·         Charles Lee Brandon – Bay City, MI

Offense: Possession with intent to distribute five grams or more of cocaine base; Eastern District of Michigan
Sentence: 262 months' imprisonment; eight years' supervised release (December 22, 2008)

Commutation Grant: Prison sentence commuted to a term of 151 months' imprisonment.

·         Walter Breland – Statesville, NC
Offense: Possession with intent to distribute more than five kilograms of cocaine base; possession of a firearm during and in relation to a drug trafficking crime; felon in possession of a firearm; Southern District of Indiana
Sentence: 420 months' imprisonment; eight years' supervised release (February 12, 2003)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

·         Eugene Kenneth Brinson – Newark, NJ
Offense: Possess with intent to distribute cocaine base; possess with intent to distribute cocaine hydrochloride & heroin; possess with intent to distribute marijuana; Eastern District of Virginia
Sentence: Life imprisonment; 10 years' supervised release (September 8, 2006)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

·         Roosevelt Brockington – Fort Lauderdale, FL
Offense: Distribution in excess of five grams of cocaine base; Middle District of Georgia
Sentence: 262 months' imprisonment; five years' supervised release (February 15, 2007)

Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment.

·         Derrick Lewis Bynum – Hyattsville, MD
Offense: Conspiracy to distribute and possess with intent to distribute controlled substances; use of a communications device to facilitate narcotics trafficking (three counts); possession with intent to distribute controlled substances (two counts); possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by a convicted felon; District of Maryland
Sentence: 300 months' imprisonment; 10 years' supervised release (December 19, 2006)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

·         Juan Benito Calbo-Gomez – Corpus Christi, TX
Offense:         1. Conspiracy to distribute and possession with intent to distribute cocaine

                        and cocaine base (crack) and marijuana; Eastern District of Texas

2. Supervised release violation (possession with intent to distribute marijuana); Eastern District of Texas

Sentence:        1. 210 months' imprisonment; five years’ supervised release (October 17, 2006); amended to 168 months’ imprisonment (November 1, 2014)              

2. 18 months' imprisonment (February 15, 2007)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Joseph J. Campbell – Summerville, SC
Offense: Conspiracy to possess with intent to distribute and distribution of cocaine and cocaine base; unlawful use of communication facility to facilitate drug trafficking activity; District of South Carolina
Sentence: Life imprisonment; 10 years' supervised release (February 14, 2006)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Eugene Carlton – Decatur, GA
Offense: Conspiracy to possess with intent to distribute cocaine base; Northern District of Georgia
Sentence: 262 months' imprisonment; 10 years' supervised release (May 1, 2002)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Shannon Cave – Bronx, NY
Offense: Possession with intent to distribute more than 50 grams of cocaine base; Western District of Virginia
Sentence: Life imprisonment; 10 years' supervised release (December 13, 2005)

Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment.

·         Fred Charles, Jr.  – Stopover, KY
Offense: Conspiracy to distribute 500 grams of cocaine; use of a firearm during a drug trafficking crime; Western District of Virginia
Sentence: 248 months' imprisonment; five years' supervised release; $500 fine (April 4, 2002)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Duane Clasen – Evansville, WI

Offense:         1. Distribution of approximately 6.85 grams of methamphetamine (mixture), after having previously been convicted of one or more felony drug offenses; Northern District of Iowa

2. Supervised release violation (distribution of amphetamine); Northern District of Iolwa

Sentence:        1. 200 months' imprisonment (July 25, 2003)                  

2. 36 months' imprisonment (consecutive); six years’ supervised release; $6,142.75 restitution (October 29, 1999)

Commutation Grant: Prison sentence commuted to expire on August 15, 2017, and unpaid balance of restitution obligation remitted.

·         Clarence Douglas Coakley – Dermott, AR
Offense: Conspiracy to possess with intent to distribute and distribute cocaine and cocaine base; distribution of cocaine base (two counts); Eastern District of North Carolina
Sentence: Life plus 360 months’ imprisonment; 10 years' supervised release (December 9, 1996)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.

·         Merlin Coleman – Chicago, IL
Offense: Conspiracy to possess with intent to distribute a controlled substance; use of a communication facility to facilitate the commission of the distribution of a controlled substance (three counts); possession with intent to distribute cocaine; Northern District of Illinois
Sentence: 240 months' imprisonment; 10 years' supervised release (January 9, 2004)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Barry Renfold Cooley – Los Angeles, CA
Offense: Conspiracy to distribute narcotics; District of Nebraska
Sentence: Life imprisonment; five years' supervised release (December 29, 2004)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Travis Dwaine Corley – Blackville, SC
Offense: Possession with intent to distribute 50 grams or more of cocaine base and a quantity of cocaine; District of South Carolina
Sentence: 240 months' imprisonment; 10 years' supervised release (July 23, 2003)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Warren Dean Cornett – Houston, TX
Offense: Conspiracy to possess with intent to distribute in excess of five kilograms of cocaine and in excess of 50 grams cocaine base; possession with intent to distribute in excess of 500 grams of cocaine; possess with intent to distribute in excess of 50 grams of cocaine base; Southern District of Texas
Sentence: Life imprisonment; 10 years' supervised release (March 27, 1998)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Bobby Richard Cotton, Jr.  – Tampa, FL
Offense: Conspiracy to possess with intent to distribute 50 grams or more of cocaine base; possession with intent to distribute 50 grams or more of cocaine base; Middle District of Florida
Sentence: 262 months' imprisonment; five years' supervised release (May 3, 2002)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Jessee Dane Cox – Crumpler, NC
Offense: Conspiracy to possess methamphetamine; Western District of Virginia
Sentence: Life imprisonment; 10 years' supervised release (May 26, 2009)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment.

·         Aubrey Jermaine Cummings – Miami, FL
Offense: Conspiracy to possess with intent to distribute at least 50 grams of cocaine base and at least five kilograms of cocaine hydrochloride; Middle District of Florida
Sentence: Life imprisonment; 10 years' supervised release (August 8, 2002)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Eddie James Davis – Bedford, OH
Offense: Possession with intent to distribute cocaine base; Northern District of Ohio
Sentence: 240 months' imprisonment; 10 years' supervised release (November 28, 2006)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Henry Deleon – Corpus Christi, TX
Offense: Conspiracy to possess with intent to distribute approximately 2.22 kilograms of a mixture or a substance containing methamphetamine; aiding and abetting the possession with intent to distribute approximately 2.22 kilograms of a mixture or substance containing methamphetamine; Southern District of Texas
Sentence: Life imprisonment  (December 15, 2006)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

·         James Dillehay – Akron, OH
Offense: Conspiracy to possess and distribute cocaine; Northern District of Ohio
Sentence: Life imprisonment  (September 10, 1993)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.

·         William R. Downs – Daytona Beach, FL
Offense: Conspiracy to possess with intent to distribute cocaine base; possession of cocaine base with intent to distribute; Middle District of Florida
Sentence: 260 months' imprisonment; five years' supervised release (February 2, 2001)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Jarrett Dunn – Cleveland, TN
Offense: Conspiracy to distribute and possess more than 50 grams cocaine base; conspiracy to distribute and possess more than five kilograms of cocaine hydrochloride; possession with intent to distribute more than five grams cocaine base; Eastern District of Tennessee
Sentence: 360 months' imprisonment; 10 years' supervised release (May 19, 2005)

Commutation Grant: Prison sentence commuted to a term of 262 months' imprisonment.

·         Robert Anthony Eberhart – Garner, NC
Offense: Distribution of cocaine base; possession of a firearm during drug trafficking; Middle District of North Carolina
Sentence: 468 months’ imprisonment, five years’ supervised release (February 1, 2005); amended to 420 months' imprisonment (November 28, 2012)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

·         Darryl Dewayne Edwards – Port Arthur, TX
Offense: Attempt to manufacture 50 grams or more of cocaine base; possession with intent to distribute cocaine base; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by a felon; Eastern District of Texas
Sentence: Life imprisonment; five years' supervised release (November 19, 2008)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Darryl Ellis – Fort Pierce, FL
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base; possession with intent to distribute cocaine base; aiding and abetting; Middle District of Alabama
Sentence: Life imprisonment; 10 years' supervised release (November 26, 1996)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Mark Foster – Waterford Works, NJ
Offense: Conspiracy to possess with intent to distribute five kilograms or more of cocaine; carrying or possessing a firearm during and in relation to a drug trafficking crime; Middle District of Florida
Sentence: Life plus 60 months’ imprisonment; 10 years' supervised release (July 12, 2002)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

·         Craig William Frazier – Great Falls, MT
Offense: Conspiracy to distribute marijuana; possession with intent to distribute marijuana; District of Montana
Sentence: 480 months' imprisonment; eight years' supervised release (December 14, 2006)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Ricardo Gallardo – Rockford, IL
Offense: Conspiracy to distribute, and possess with intent to distribute, five kilograms or more of cocaine and one kilogram or more of heroin; distribution of 2,006 grams of cocaine; possession with intent to distribute 6.02 kilograms of cocaine and 996.9 grams of heroin; money laundering; engaging in monetary transactions in property derived from specified unlawful activity; Northern District of Illinois
Sentence: 360 months' imprisonment; five years' supervised release; $500 fine (December 16, 2005); amended to 292 months' imprisonment (November 1, 2014)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

·         Jason Gardner – Fort Worth, TX
Offense: Conspiracy to possess with intent to distribute more than 50 grams of cocaine base; Western District of Texas
Sentence: 262 months' imprisonment; five years' supervised release (March 27, 2003)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Ricky Lamont Garrett – Waco, TX
Offense: Possession with intent to distribute at least 50 grams of "crack" cocaine; Western District of Texas
Sentence: 224 months' imprisonment; five years' supervised release; $1,000 fine (March 28, 2007)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016, and unpaid balance of $1,000 fine remitted.  

·         Orfil Javier Garza – Pacoima, CA
Offense: Possession of methamphetamine with intent to distribute; carrying a firearm during and in relation to a drug trafficking offense; District of Utah
Sentence: 180 months' imprisonment; five years' supervised release (January 13, 2010)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Antonio Jevon Gayden – Chicago, IL
Offense: Possession with intent to distribute, and/or aid and abet the possession with intent to distribute five grams or more but less than 50 grams of cocaine base after having been previously convicted of a felony drug offense; conspiracy to distribute and possess with intent to distribute 50 grams or more of cocaine base after having been previously convicted of a felony drug offense; Northern District of Iowa
Sentence: 240 months' imprisonment; 10 years' supervised release (April 16, 2009)

Commutation Grant: Prison sentence commuted to a term of 120 months' imprisonment.

·         Mark Francis Glidden – Clear Lake, IA
Offense: Manufacture and attempt to manufacture five grams or more of methamphetamine (actual) after a prior conviction for a felony drug offense; Northern District of Iowa
Sentence: 262 months' imprisonment; eight years' supervised release (October 22, 2003)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment.

·         Quincy Allen Goins – Madison, TN
Offense: Possession with intent to distribute in excess of 50 grams of cocaine base; Eastern District of Tennessee
Sentence: Life imprisonment (March 14, 2001)

Commutation Grant: Prison sentence commuted to expire on August 30, 2017.

·         David Gonzalez – Houston, TX
Offense: Conspiracy to distribute 50 grams or more of cocaine base; aiding and abetting the distribution of five grams or more of cocaine base; aiding and abetting the possession with intent to distribute 50 grams or more of cocaine base; Southern District of Texas
Sentence: 240 months' imprisonment; 10 years' supervised release (January 26, 2004)

Commutation Grant: Prison sentence commuted to expire on May 31, 2017.

·         Elliott Gray – Baltimore, MD
Offense: Possession with intent to distribute cocaine base, and aiding and abetting; District of Maryland
Sentence: 188 months' imprisonment; four years' supervised release (August 24, 2007)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Randolph S. Gustave – Albuquerque, NM
Offense: Conspiracy to distribute and possess with intent to distribute in excess of 1,000 kilograms of marijuana; conspiracy to launder monetary instruments (two counts); Western District of Pennsylvania
Sentence: 324 months' imprisonment; five years' supervised release (June 21, 2001); amended to 262 months' imprisonment (November 1, 2015)

Commutation Grant: Prison sentence commuted to expire on May 1, 2017.

·         Ali Reno Harden – Dublin, GA
Offense: Possession of a firearm by a convicted felon; possession of a firearm having an obliterated serial number; possession with intent to distribute more than five grams of cocaine base; possession of a firearm during the commission of a drug trafficking crime; possession of marijuana; Southern District of Georgia
Sentence: 180 months' imprisonment; eight years’ supervised release; $5,000 fine (February 19, 2009)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016, and unpaid balance of $5,000 fine remitted.

·         Ronnie Lorenzo Hardy – Chipley, FL
Offense: Conspiracy to possess with intent to distribute cocaine base; principal to possess with intent to distribute cocaine base; unlawful possession of a firearm; possession of a firearm during a felony drug offense; Northern District of Florida
Sentence: Life plus 60 months' imprisonment; 10 years' supervised release; $1,000 fine (September 19, 2000)

Commutation Grant: Prison sentence commuted to a term of 270 months' imprisonment.

·         Charles Harrison  – Natchez, MS
Offense: Possession with intent to distribute cocaine base; Southern District of Mississippi
Sentence: 262 months' imprisonment; five years' supervised release; $1,500 fine (October 25, 2007)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Jason Thomas Haslip – Las Vegas, NV
Offense: Conspiracy to distribute in excess of 500 grams of a mixture and substance containing a detectable amount of Methylenedioxymethamphetamine (MDA or Ecstasy); aiding and abetting possession with intent to distribute 87 capsules and 1,419 tablets of Methylenedioxymethamphetamine (MDA or Ecstasy); aiding and abetting possession with intent to distribute 27 grams of methamphetamine; District of Minnesota
Sentence: 324 months' imprisonment; five years' supervised release (February 17, 2004); amended to 262 months' imprisonment (November 1, 2015)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Monroe Herring – Greensboro, NC
Offense: Conspiracy to possess with intent to distribute a quantity of cocaine and cocaine base; Western District of North Carolina
Sentence: 240 months' imprisonment; 10 years' supervised release (March 26, 2007)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Emmanuel Herron – Stella, MO
Offense: Conspiracy to distribute 56.63 grams of crack cocaine; possession of a firearm in furtherance of a drug trafficking crime; Northern District of Iowa
Sentence: 180 months' imprisonment; five years' supervised release (February 22, 2007)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Marvin K. Holloway – District Heights, MD
Offense: Unlawful possession with intent to distribute 50 grams or more of cocaine base; District of Columbia
Sentence: 262 months' imprisonment; five years' supervised release (November 21, 2000)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Cory Lamonte Huddleston – St. Louis, MO
Offense: Possession with the intent to distribute in excess of 50 grams of cocaine base; Eastern District of Missouri
Sentence: 240 months' imprisonment; 10 years' supervised release (March 20, 2009)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Kevin Huff – New Orleans, LA
Offense: Conspiracy to possess with intent to distribute cocaine base; possession with the intent to distribute cocaine base; possession with intent to distribute cocaine; Eastern District of Louisiana
Sentence: 300 months' imprisonment; five years' supervised release (September 26, 2001); amended to 275 months' imprisonment (November 3, 2008)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Jose Jasso, Jr. – Progreso, TX
Offense: Conspiracy to possess with intent to distribute cocaine; Southern District of Texas
Sentence: 360 months' imprisonment; five years' supervised release; $10,000 fine (June 27, 1997)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016, and unpaid balance of $10,000 fine remitted.

·         Isaac Simmons Johnson – Macclenny, FL
Offense: Possession with intent to distribute cocaine base; Middle District of Florida
Sentence: 360 months' imprisonment; eight years' supervised release (May 27, 2004)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Samuel Latrell Johnson – Odessa, TX
Offense: Conspiracy to possess with intent to distribute more than 50 grams of cocaine base; possession with intent to distribute a controlled substance; Western District of Texas
Sentence: Life imprisonment; 10 years' supervised release (October 17, 2002)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Theodore Johnson – Rock Island, IL
Offense: Conspiracy to distribute cocaine base; Southern District of Illinois
Sentence: 360 months' imprisonment; five years' supervised release; $5,000 fine (May 19, 2000)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016, and unpaid balance of $5,000 fine remitted.

·         Walter Johnson – Tampa, FL
Offense: Conspiracy to possess with intent to distribute 50 grams or more of cocaine base; distributing 50 grams or more of cocaine base; Middle District of Florida
Sentence: 360 months' imprisonment; 10 years' supervised release (June 30, 2000)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Tony Lamont Jones – Portsmouth, VA
Offense: Conspiracy to distribute and possess with intent to distribute a mixture or substance containing cocaine base; distribution of cocaine base; Eastern District of Virginia
Sentence: Life imprisonment; five years' supervised release (January 29, 1998); amended to 360 months' imprisonment (August 28, 2015)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         James Howard Jones – Cartersville, GA
Offense: Conspiracy to possess with intent to distribute cocaine base; aided and abetted possession with intent to distribute cocaine base; Northern District of Georgia
Sentence: 360 months' imprisonment; 10 years' supervised release (June 5, 1997); amended to 324 months' imprisonment (November 2, 2015)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Dirk Ladson – Bronx, NY
Offense: Conspiracy to distribute and possess with intent to distribute a mixture and substance containing cocaine and cocaine base; Eastern District of Virginia
Sentence: 328 months' imprisonment; five years' supervised release (January 12, 1995)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Mark Lanzilotti – Sewell, NJ
Offense: Conspiracy to manufacture, distribute, and possess with intent to distribute methamphetamine; manufacture of methamphetamine and aiding and abetting; Eastern District of Pennsylvania
Sentence: Life imprisonment; 10 years' supervised release (April 4, 2002); amended to 360 months' imprisonment (August 7, 2006)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

·         Michael Freeman Lattimore – Lawndale, NC
Offense: Possession with intent to distribute cocaine base; Western District of North Carolina
Sentence: 240 months' imprisonment; 10 years' supervised release (March 30, 2005)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Gary L. Lynch – Rocky Mount, NC
Offense: Conspiracy to distribute and possess with intent to distribute more than 50 grams of cocaine base (crack) and cocaine; Eastern District of North Carolina
Sentence: Life imprisonment; 10 years' supervised release; $1,200 restitution (April 30, 2001)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.   

·         Emmanuel Obi Maduka – Detroit, MI
Offense: Conspiracy to distribute and possess with intent to distribute heroin; conspiracy to import heroin; Southern District of New York
Sentence: 240 months' imprisonment; 10 years' supervised release (April 11, 2008)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Larry Martin – Chicago, IL
Offense: Drug conspiracy; Northern District of Illinois
Sentence: Life imprisonment; five years' supervised release (August 12, 1993)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.

·         Rudy Martinez – Chicago, IL
Offense: Conspiracy; continuing criminal enterprise; drug distribution (two counts); use of a communication facility in commission of a crime (three counts); interstate travel in aid of racketeering enterprises; Northern District of Illinois
Sentence: Life imprisonment; five years' supervised release (April 23, 1992)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Victor Eugene Mason – Washington, NC
Offense: Conspiracy to possess with intent to distribute and distribution of five kilograms or more of cocaine; District of South Carolina
Sentence: Life imprisonment; 10 years' supervised release (September 11, 2007)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Rodney R. McCain – Suitland, MD
Offense: Distribution and possession with intent to distribute cocaine base; felon in possession of a firearm; District of Maryland
Sentence: 200 months' imprisonment; five years' supervised release (September 14, 2006)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Kenneth Russell McCoy – Council Bluffs, IA
Offense: Conspiracy to distribute 500 grams or more of methamphetamine; Southern District of Iowa
Sentence: 216 months' imprisonment; seven years' supervised release (September 24, 2007)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment.

·         London Archie McRae – West End, NC
Offense: Possessed with intent to distribute cocaine base (crack); Middle District of North Carolina
Sentence: 280 months' imprisonment; eight years' supervised release (May 29, 2007)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Danielle Bernard Metz – New Orleans, LA
Offense: Conspiracy to possess with intent to distribute and distribute cocaine; continuing criminal enterprise; possession with intent to distribute cocaine hydrochloride; laundering of monetary instruments; Eastern District of Louisiana
Sentence: Life imprisonment; five years' supervised release (December 15, 1993)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Hal Q. Mincy – Cleveland, OH
Offense: Possession with intent to distribute more than 50 grams of cocaine base (crack); Northern District of Ohio
Sentence: 240 months' imprisonment; 10 years' supervised release (June 15, 2001)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Joseph Newton – Savannah, GA
Offense: Conspiracy to possess with intent to distribute and to distribute controlled substances; use of a communication facility; Southern District of Georgia
Sentence: Life imprisonment; five years' supervised release (February 19, 1992); amended to 360 months' imprisonment (November 1, 2014)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         James Clinton Patterson, Jr. – Concord, NC
Offense: Possessed with intent to distribute cocaine base (crack); Middle District of North Carolina
Sentence: 262 months' imprisonment; eight years' supervised release (February 12, 2002)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Raeanna Mae Paxton – Casper, WY
Offense: Conspiracy to distribute methamphetamine; Southern District of Iowa
Sentence: 262 months' imprisonment; eight years' supervised release (July 10, 2008)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment.

·         Leon Perry – Metter, GA
Offense: Conspiracy to possess with intent to distribute, and to distribute a quantity of cocaine base and a quantity of cocaine hydrochloride; Southern District of Georgia
Sentence: 240 months' imprisonment; five years' supervised release; $2,500 fine (December 10, 2007)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, and unpaid balance of $2,500 fine remitted, conditioned upon enrollment in residential drug treatment.

·         Michael D. Points – Louisville, KY
Offense: Possession with intent to distribute cocaine base; Western District of Kentucky
Sentence: 180 months' imprisonment; eight years' supervised release (December 5, 2006)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment.

·         Albert Randolph – St. Louis, MO
Offense: Possession with intent to distribute five grams or more of cocaine base; Eastern District of Missouri
Sentence: 160 months' imprisonment; four years' supervised release (July 1, 2008)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Gregory Augusta Ransom, II – Panama City, FL
Offense: Conspiracy to distribute more than 50 grams of a mixture and substance containing cocaine base and cocaine; Northern District of Florida
Sentence: 240 months' imprisonment; 10 years' supervised release (February 6, 2008)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Darryl Lamar Reed – San Leandro, CA
Offense: Manufacture and possession with intent to distribute crack and possession with intent to distribute cocaine and aiding and abetting; Northern District of California
Sentence: 420 months' imprisonment; five years' supervised release; $50,000 fine (January 29, 1990)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Tommy Rice – Spartanburg, SC
Offense: Aiding and abetting in the commission of possession with intent to distribute crack cocaine; District of South Carolina
Sentence: Life imprisonment, 10 years’ supervised release (January 6, 2004) 

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Daxtrell D. Robinson – Champaign, IL
Offense: Possession of 50 grams or more of cocaine base (crack); Central District of Illinois
Sentence: 240 months' imprisonment; 10 years' supervised release (May 25, 2005)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Uriah Alfred Rose – Miami, FL
Offense: Possession with intent to distribute five grams or more of crack cocaine; Southern District of Florida
Sentence: 188 months' imprisonment; four years' supervised release (June 7, 2007)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Calvin Dwayne Sangster – St. Louis, MO
Offense: Possession with intent to distribute cocaine base (crack); Eastern District of Missouri
Sentence: 188 months' imprisonment; four years' supervised release (November 30, 2007)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Martez Lamont Sherrod – Greenville, NC
Offense: Conspiracy to possess with intent to distribute more than 50 grams of cocaine base and more than 500 grams of cocaine; possession with intent to distribute more than 50 grams of cocaine base; possession with intent to distribute cocaine; Eastern District of North Carolina
Sentence: Life imprisonment; 10 years' supervised release (October 12, 2005)

Commutation Grant: Prison sentence commuted to a expire on December 28, 2016.

·         George E. Smith – Riviera Beach, FL
Offense: Possession with intent to distribute less than five grams of crack cocaine within 1,000 feet of a school; possession with intent to distribute a detectable amount of cocaine within 1,000 feet of a school; Southern District of Florida
Sentence: 235 months' imprisonment; 12 years' supervised release (December 8, 2005)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Lue Gene Swarn – Dallas, TX
Offense: Conspiracy to possess with intent to distribute and distribution of cocaine; use of a communication facility to facilitate the commission of a drug felony; Eastern District of Texas
Sentence: Life imprisonment; 10 years' supervised release (April 4, 2006)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         John Western Thomas – Albion, MI
Offense: Possession with intent to distribute more than 100 grams of cocaine base; Western District of Michigan
Sentence: Life imprisonment; 10 years' supervised release (February 22, 2006)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Timothy L. Tyler – St. Petersburg, FL
Offense: Possession with intent to deliver LSD; conspiracy to possess with intent to distribute LSD; Middle District of Florida
Sentence: Life imprisonment  (July 19, 1994)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Norman Eugene Van Zee – Highmore, SD
Offense: Possession with intent to distribute a controlled substance; District of South Dakota
Sentence: 292 months' imprisonment; 10 years' supervised release (October 20, 2003)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Gracie Walker – Granbury, TX
Offense: Conspiracy to distribute a controlled substance; Northern District of Texas
Sentence: 290 months' imprisonment; five years' supervised release (July 27, 2007)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Derrick Waller – St. Louis, MO

Offense:         1. Supervised release violation (possession of an unregistered firearm and distribution of cocaine); Eastern District of Missouri

2. Possession with intent to distribute cocaine base (crack); Eastern District of Missouri

Sentence:        1. 36 months' imprisonment (July 17, 2007)

2. 188 months' imprisonment (concurrent to the unserved part of the 36-month sentence); four years' supervised release (November 2, 2007)

45 months' imprisonment (consecutive) (February 16, 1996)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Patrick Willard – Greensboro, NC
Offense: Conspiracy to distribute 50 grams or more of cocaine base; Eastern District of Kentucky
Sentence: 327 months' imprisonment; 10 years' supervised release (January 8, 2007)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Christopher White – Anderson, SC
Offense: Conspiracy to distribute and possess with intent to distribute narcotics; distribution and possession of narcotics with intent to distribute; aiding and abetting; District of Maryland
Sentence: 360 months' imprisonment; five years' supervised release; $1 fine (July 30, 1999); amended to 289 months' imprisonment (November 1, 2014)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Daniel Williams – Schenectady, NY
Offense: Conspiracy to possess and distribute cocaine and cocaine base; Northern District of New York
Sentence: 240 months' imprisonment; 10 years' supervised release (May 2, 2008)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Jonathan Carnell Williams – Washington, DC
Offense: Possession with intent to distribute five grams or more of cocaine base (crack); District of Maryland
Sentence: 262 months' imprisonment; eight years' supervised release (May 6, 2003)

Commutation Grant: Prison sentence commuted to expire on December 28, 2016.

·         Levi Wilson – Denver, CO
Offense: Conspiracy to possess with intent to distribute, and to distribute, cocaine base and to use a place where cocaine base is manufactured, distributed and used; District of Wyoming
Sentence: 240 months' imprisonment; 10 years' supervised release (November 3, 2005)

Commutation Grant: Prison sentence commuted to expire on August 30, 2018, conditioned upon enrollment in residential drug treatment. 

·         Richard Van Winrow – Los Angeles, CA
Offense: Possession with intent to distribute a narcotic drug controlled substance; felon in possession of a firearm; Central District of California
Sentence: Life imprisonment  (December 6, 1989)

Commutation Grant: Prison sentence commuted to expire on August 30, 2017.

·         Raul S. Zavala – Spokane, WA
Offense: Possession with intent to distribute 500 grams or more of methamphetamine; use of a communication facility to facilitate the commission of a felony; Eastern District of Washington
Sentence: Life imprisonment  (April 18, 2006)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment. 

GREENEVILLE, Tenn. – On Aug. 29, 2016, following a one-day bench trial in U.S. District Court on April 20, 2016, Thomas Lee Newman, Sr., a.k.a. Tree, 37, of Pittsfield, Mass., was convicted by the Honorable J. Ronnie Greer, U.S. District Court Judge, of one count of conspiracy to distribute, and to possess with the intent to distribute, 280 grams or more of a mixture and substance containing a detectable amount of cocaine base (“crack”); two counts of possession with intent to distribute cocaine base (“crack”); and one count of distribution of cocaine base (“crack”).

Sentencing is set for 1:30 p.m., Nov. 14, 2016. Because of his extensive criminal record, Newman faces a mandatory term of life in prison. There is no parole in the federal system.

Over the course of several years, Newman, and numerous others participated in a massive conspiracy which was responsible for the distribution of multi-kilogram quantities of crack cocaine throughout Johnson City. To accomplish this, Newman and others procured both powder cocaine and crack cocaine from sources of supply in New York, North Carolina, and elsewhere. The drugs were then transported to Tennessee, where countless facilitators, couriers, and distributors collaborated to sell the contraband throughout upper east Tennessee. Newman himself served as both a source of supply for his coconspirators, as well as a recipient and distributor through others.

During the trial, investigators provided overwhelming evidence of Newman’s involvement in the instant conspiracy, including one controlled drug purchase, one traffic stop, and one search warrant, all of which yielded crack cocaine. In addition, two coconspirators provided damning testimony of Newman’s conduct, outlining his drug dealing in exorbitant drug quantities.

This multiyear-long investigation is the product of a partnership between the Narcotics Unit of the Johnson City, Tennessee Police Department, and the Federal Bureau of Investigation. Assistant U.S. Attorney Nick Regalia represented the United States.

In total, 21 individuals have been charged as part of this ongoing investigation. Those previously sentenced include:

- Antione Leroy Bishop, 33, of Spartanburg, S.C., 57 months;

- Nickerson Jean-Baptiste, 28, of Kingsport, Tenn., 70 months;

- Rashad El-Amin Feggans, 39, of Jonesborough, Tenn., 156 months;

- John Robert Lovitt, II, 32, of Ayden, N.C., 135 months;

- Narvell Kentez McDermott, 30, of Johnson City, Tenn., 34 months;

- Brandon Gustavious Porter; 33, of Charlotte, N.C.; 37 months;

- Arlando Carroll Story, 28, of Johnson City, Tenn., 108 months;

- Ernest Brandon Weaver, 29, of Johnson City, Tenn., 42 months; and

- David Keith Workman, 37, of Johnson City, Tenn., 120 months.

The remaining individuals who were charged are either awaiting sentencing or pending trial.

The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (“OCDETF”) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

This case was also brought as part of the Safe Streets Violent Crimes Initiative, a program which combines the efforts of federal, state, and local agencies in order to stop violent felons from endangering our communities.

This case was further brought as part of Project Safe Neighborhoods (“PSN”), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community face

Deputy Attorney General Sally Q. Yates released the following statement following President Obama’s clemency announcement today:

"The clemency initiative is about more than the 111 people who learned today that their sentences have been commuted; it's also about the families and communities who will welcome them home as they work to build a new life.  With today's announcement, the President has given a second chance to over 300 individuals in the month of August and we expect many more men and women will receive that same opportunity in the months to come. We remain hopeful that Congress will come to a bipartisan and lasting solution for much needed sentencing reforms before the end of the year." 

A former FBI special agent was sentenced today to 36 months in prison for stealing over $136,000 in drug proceeds seized during the execution of search warrants in 2014, falsifying documents and tampering with a witness.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Angel D. Gunn of the Department of Justice Office of the Inspector General’s Los Angeles Field Office made the announcement.

Scott M. Bowman, 45, of Moreno Valley, California, pleaded guilty on May 2, 2016, to one count of conversion of property by a federal employee, one count of obstruction of justice, one count of falsification of records and one count of witness tampering.  Bowman was sentenced by U.S. District Judge Jesus G. Bernal of the Central District of California, who also ordered Bowman to pay $136,462 in restitution.

According to admissions made in connection with his plea, Bowman misappropriated drug proceeds seized during the execution of three search warrants in June and August 2014 after they were transferred to his custody in his official capacity as a federal law enforcement officer.  Bowman admitted that he proceeded to spend the stolen money for his own personal use and enjoyment, including tens of thousands of dollars on vehicles and new equipment, including speakers, rims and tires.  Bowman also used $15,000 of the misappropriated cash to pay for cosmetic surgery for his spouse and opened a new checking account into which he deposited $10,665 of the stolen funds, he admitted.

According to the plea agreement, in order to conceal his embezzlement, Bowman falsified official FBI reports and submitted a deposit receipt – with a forged signature – that understated the amount of proceeds he had actually seized at the search site.  In October 2014, Bowman sent emails to a local police detective containing a detailed cover story that the detective was instructed to provide in case he was asked about Bowman’s handling of the drug proceeds and a copy of the receipt with the forged signature so that the detective could falsely claim the forged signature as his own, Bowman admitted.

The Department of Justice’s Office of the Inspector General investigated the case.  Trial Attorneys Lauren Bell and Robert J. Heberle of the Criminal Division’s Public Integrity Section prosecuted the case.  

A federal court in Charleston, South Carolina, has permanently barred two women from preparing federal tax returns for others, the Justice Department announced.

According to a civil complaint filed by the United States, Latasha Failey and her sister Latoya Windham prepared federal income returns in North Charleston from 2009 to 2012.  They continually and repeatedly prepared income tax returns that claimed false deductions or credits in order to understate their customers’ tax liabilities, the complaint alleged.  The defendants falsely claimed education credits; child and dependent care credits; itemized deductions on Schedule A; and dependency exemptions, according to the complaint.  In 2013, Failey and Windham each pleaded guilty to two counts of aiding and assisting in the preparation and presentation of a false income tax return and were sentenced to prison and probation, respectively, the complaint states.

The court’s order also requires Failey and Windham to give the United States a list of all of their return preparation customers since Jan. 1, 2013.

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.

Antitrust Division Urges California State Assembly to Consider Potential Anticompetitive Effects of Proposals to Ban or Limit Third-Party Court-Reporting Contracts

The Department of Justice’s Antitrust Division today submitted a statement on the potential anticompetitive effects of legislative proposals that could result in a ban or limitation on contracts between local California court reporters or service firms and third parties, such as insurance companies, for more than one deposition at a time, also known as third-party contracts.  Such regulation of court-reporting services can raise barriers to entry, restrict competition and limit potentially cost-saving options available to consumers.    Accordingly, the division recommended carefully weighing the potential competitive costs of any proposals to restrict competition in court-reporting services against any demonstrated risk these contracts could pose to the integrity of court reporting, and as a result, to the judicial process. 

The division also noted that restrictions on the ability of court reports to enter third-party contracts should be imposed only where there is credible evidence of a significant risk of harm to the judicial process.  Any restrictions should be narrowly tailored to address the harm and not discourage innovative contract terms to deliver court-reporting services for the benefit of consumers.

“Consumers benefit when a competitive marketplace presents them with a wider variety of services,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division.  “When analyzing legislation that could result in a ban or limitation of third-party court-reporting contracts, the California State Legislature should consider a company’s ability to realize significant savings under a third-party court-reporting contract and pass savings on to its customers.”

The statement is in response to a request from California Assemblyman Scott Wilk.  The request asked for views on potential legislative proposals that would subject out-of-state court reporter service provider firms to the jurisdiction of the California Court Reporters Board, which could have the effect of banning or limiting the use of multi-case third-party contracts.

Letter to Assemblyman Wilk

The Justice Department today announced the launch of an updated educational video reminding employers that Salvadorans with Temporary Protected Status (TPS) may continue working beyond the Sept. 9, 2016, expiration date of their employment authorization documents.  The Justice Department also cautions employers that requesting additional work-authorization documents from these workers may violate anti-discrimination law.

The video – released by the Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) – explains that the Department of Homeland Security (DHS) automatically extended the validity of employment authorization documents for Salvadorans with TPS until March 9, 2017.  Requesting additional work-authorization documents from these workers may violate the anti-discrimination provision of the Immigration and Nationality Act (INA).  This law prohibits employers from making additional and unauthorized documentary demands because of an employee’s citizenship, immigration status or national origin when verifying or re-verifying an employee’s employment eligibility.

The updated video can be viewed here.

“This video provides employers with a clear reminder and practical guidance to ensure that they comply with federal law when verifying the employment eligibility of Salvadoran workers with Temporary Protected Status,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “The Justice Department is firmly committed to protecting the rights of all work-authorized immigrants and ensuring that employers do not engage in unlawful discrimination.”

TPS is a temporary immigration benefit that allows qualified individuals who are in the United States to stay and work for a limited period of time.  A foreign country is designated for TPS due to conditions in the country that temporarily prevent the country’s nationals from returning safely, such as ongoing armed conflict, environmental disasters or other extraordinary and temporary conditions in the designated country.  Individuals with TPS can obtain employment authorization documents to work legally in the United States.

OSC is responsible for enforcing the anti-discrimination provision of the INA.  Among other things, this law prohibits citizenship, immigration status and national origin discrimination in hiring, firing and recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.

For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired), sign up for a free webinar, email [email protected], or visit OSC’s website at www.justice.gov/crt/about/osc.   

The Justice Department’s Community Relations Service (CRS) today released a new training video for law enforcement which provides information, tools and techniques to help ensure that interactions with members of the transgender community are respectful, professional and safe for all involved.

The training uses three non-emergency and non-crisis situations to discuss ways for police officers to effectively and politely interact with transgender individuals.  In promoting best practices, the video defines three important terms: assigned sex, sexual orientation and gender identity.  As the training outlines, understanding the terminology and the major issues facing the transgender community can help rebuild trust and ensure that encounters are safe for all parties.  The video also emphasizes the importance of distinguishing between a threat and a stereotype, and notes that individuals who feel disrespected are less likely to have faith in or cooperate with law enforcement. 

“Transgender Americans, like all Americans, deserve to be treated with courtesy and respect by law enforcement officers,” said Acting Director Paul Monteiro of CRS.  “The information provided in this video will help strengthen the relationship between police and the transgender community, allowing for more effective investigations and safer encounters for officers and citizens alike.”

The training stresses that officers should keep their questions relevant to the contact and remain courteous throughout the encounter.  In one of the examples, the video demonstrates an officer laughing and using an inappropriate pronoun to address a transgender individual who appears to be the victim of a crime and the officer’s partner pulls him aside to correct his behavior.  Afterwards, the offending officer apologizes for his prior conduct and approaches the rest of the interview with the necessary respect and professionalism.  This illustration not only highlights how officers should act with members of the transgender community, but also addresses the need for officers to say something to their peers when they see problematic behavior.

CRS was established under Title X of the Civil Rights Act of 1964 to resolve “disputes, disagreements or difficulties relating to discriminatory practices based on race, color or national origin.”  It is not an investigatory or prosecutorial agency, and it does not have any law enforcement authority.  Rather, CRS works with all parties, including state and local governments, private and public organizations, civil rights groups and local community leaders to uncover the underlying interests of all of those involved in the conflict and facilitate solutions to the community's challenges.  In addition, CRS assists communities in developing local mechanisms and community capacity to prevent tension and violent hate crimes from occurring in the future.  CRS works in all 50 states and the U.S. territories, and in communities large and small, rural, urban and suburban. 

Deposited More Than $197,000 in Fraudulent Refunds into Her Bank Accounts

A Crystal Lake, Illinois, woman pleaded guilty today to stealing more than $197,000 from the United States, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.

According to the plea agreement, Nellyvette Mojica, 34, admitted that from February 2012 to July 2015, she participated in a scheme to steal money from the United States through the filing of fraudulent income tax returns.  According to the plea agreement, Mojica deposited into her bank accounts income tax refunds that she knew were the proceeds of fraudulently filed tax returns.  Mojica admitted that as part of the scheme she caused 81 fraudulent tax refunds totaling more than $197,000 to be deposited into accounts that she controlled.  Mojica also admitted that following the deposit of these fraudulently obtained refunds, she withdrew some of the money for her own use.

Sentencing is scheduled for Dec. 7.  Mojica faces a statutory maximum sentence of 10 years in prison, along with a fine of up to $250,000 and three years of supervised release and $197,000 in restitution to the Internal Revenue Service (IRS).  She is the second defendant who pleaded guilty in this case.  Her codefendant, Rosa Alverio, pleaded guilty to stealing government funds and is scheduled to be sentenced on Nov. 10.

Principal Deputy Assistant Attorney General Ciraolo thanked agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Ryan R. Raybould and Timothy M. Russo, who are prosecuting the case.  Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Northern District of Illinois for their substantial assistance in the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.