District Not Recorded

Department of Justice Tribal Access Program (TAP) Will Improve the Exchange of Critical Data

Department of the Interior Companion Program to Provide Name-Based Emergency Background Checks for Child Placement

The Department of Justice is launching an initial phase of the Tribal Access Program for National Crime Information (TAP) to provide federally-recognized tribes access to national crime information databases for both civil and criminal purposes.  TAP will allow tribes to more effectively serve and protect their communities by ensuring the exchange of critical data.

This initial phase of TAP was announced today in a meeting with tribes held during the 2015 Department of Justice/FBI Criminal Justice Information Services (CJIS) Division Tribal Conference in Tulsa, Oklahoma.

“Federal criminal databases hold critical information that can solve crimes, and keep police officers and communities safe,” said Deputy Attorney General Sally Quillian Yates.  “The Tribal Access Program is a step forward to providing tribes the access they need to protect their communities, keep guns from falling into the wrong hands, assist victims and prevent domestic and sexual violence.  Empowering tribal law enforcement with information strengthens public safety and is a key element in our ongoing strategy to build safe and healthy communities in Indian country. ” 

“The FBI is pleased to participate in this initiative,” said Executive Assistant Director Amy Hess of the FBI’s Science and Technology Branch.  “This will be a positive step for the tribal agencies to receive valuable criminal information and also for those same tribal agencies to submit criminal information at the national level.  Through this partnership, information becomes richer and communities can become safer.”

TAP will support tribes in analyzing their needs for national crime information and help provide appropriate solutions, including a-state-of-the-art biometric/biographic computer workstation with capabilities to process finger and palm prints, take mugshots and submit records to national databases, as well as the ability to access CJIS systems for criminal and civil purposes through the Department of Justice.  TAP will also provide specialized training and assistance for participating tribes.

While in the Tribal Law and Order Act of 2010 Congress required the Attorney General to ensure that tribal officials that meet applicable requirements be permitted access to national crime information databases, the ability of tribes to fully participate in national criminal justice information sharing via state networks has been dependent upon various regulations, statutes and policies of the states in which a tribe’s land is located.  Therefore, improving access for tribal law enforcement to federal criminal information databases has been a departmental focus for several years.  In 2010, the department instituted two pilot projects, one biometric and one biographic, to improve informational access for tribes.  The biographic pilot continues to serve more than 20 tribal law enforcement agencies.

Departments of Justice and Interior Working Group

In 2014, the Departments of Justice and the Interior (DOI) formed a working group to assess the impact of the pilots and identify long-term sustainable solutions that address both criminal and civil needs of tribes.  The outcome of this collaboration was the TAP, as well as an additional program announced today by the DOI’s Bureau of Indian Affairs (BIA) that provides tribes with national crime information prior to making child placement decisions in emergency circumstances.  Under the BIA program, social service agencies of federally recognized tribes will be able to view criminal history information  accessed through BIA’s Office of Justice Services who will conduct name-based checks in situations where parents are unable to care for their children.

“Giving tribal government programs access to national crime databases through DOJ’s Tribal Access Program for National Crime Information is a tremendous step forward towards increasing public safety in Indian Country,” said Assistant Secretary Kevin K. Washburn for Indian Affairs at the Department of the Interior.  “The Bureau of Indian Affairs Office of Justice Services’ Purpose Code X program provides a much-needed tool for tribal social service agencies when they must find safe homes to place children during temporary emergency situations.”

In the initial phase of the TAP program, the biometric/biographic workstations will be deployed to up to 10 federally-recognized tribes who will provide user feedback.  This phase will focus on assisting tribes that have law enforcement agencies, while in the future the department will seek to address needs of the remaining tribes and find a long-term solution.  The department will continue to work with Congress for additional funding to more broadly deploy the program.

The Department of Justice’s Chief Information Officer manages TAP.  

“It is our hope that TAP can minimize the national crime information gap and drive a deeper and more meaningful collaboration between the federal, state, local and tribal criminal justice communities,” said Chief Information Officer Joseph F. Klimavicz for the department.

For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.

For more information about the Justice Department’s work on tribal justice and public safety issues, visit:  www.justice.gov/tribal.

For more information about the Department of the Interior Bureau of Indian Affairs, visit www.indianaffairs.gov/

A federal jury in Los Angeles late yesterday convicted the former owner, operator and managers of a Southern California ambulance company of health care fraud charges in connection with a Medicare fraud scheme of at least $2.4 million.   

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Acting Special Agent in Charge Steve Ryan of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Los Angeles Region and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division made the announcement.

Yaroslav Proshak, aka Steven Proshak, 47, of Valley Village, California; Emilia Zverev, 58, of Van Nuys, California; and Sharetta Michelle Wallace, 37, of Inglewood, California, each were convicted of one count of conspiracy to commit health care fraud and five counts of health care fraud following a two-week trial.  Proshak’s sentencing is scheduled for Nov. 24, 2015, and Zverev’s and Wallace’s sentencing is scheduled for Nov. 30, 2015, all before U.S. District Judge S. James Otero of the Central District of California, who presided over the trial.

Proshak owned and operated ProMed Medical Transportation, an ambulance transportation company in the greater Los Angeles area that provided non-emergency ambulance transportation services to Medicare beneficiaries, many of whom were dialysis patients.  Zverev was the billing manager, and Wallace supervised ProMed’s emergency medical technicians (EMTs).

The evidence at trial demonstrated that, between May 2008, and October 2010, the defendants conspired to bill Medicare for ambulance transportation services for individuals whom the defendants knew did not need such services.  In addition, the evidence showed that the defendants instructed EMTs who worked at ProMed to conceal the true medical conditions of patients they were transporting by altering requisite paperwork and creating fraudulent documents to justify the transportation services.

According to evidence admitted at trial, during the course of the conspiracy, ProMed submitted at least $2.4 million in false and fraudulent claims to Medicare for medically unnecessary transportation services.  Medicare paid at least $1.2 million of those claims.

The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.  The case was investigated by the FBI and HHS-OIG.  The case was prosecuted by Trial Attorneys Blanca Quintero, Fred Medick and Ritesh Srivastava of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,300 defendants who have collectively billed the Medicare program for more than $7 billion.  In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.

A Phenix City, Alabama, resident pleaded guilty today in the Middle District of Alabama to conspiracy and aggravated identity theft for her role in a multimillion-dollar stolen identity tax refund fraud (SIRF) scheme, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama announced.

According to court documents, between 2011 and June 2014, Talashia Hinton, also known as LayLay and LaLa, participated in a large-scale stolen identity tax refund conspiracy.  The indictment alleges that the co-conspirators filed more than 3,000 false tax returns for 2012 and 2013 that falsely claimed more than $7.5 million in federal income tax refunds from the Internal Revenue Service (IRS).  Hinton worked with Keisha Lanier, who supplied her with IRS electronic filing identification numbers in the names of sham tax businesses and stolen identities that included personal information so that Hinton could prepare and file false tax returns to claim refunds using the stolen identities.  At the direction of Lanier, Hinton also obtained identities from Tamika Floyd, who stole names from databases maintained by the state of Alabama.  The false returns directed the IRS to pay the refunds by issuing U.S. Treasury checks and direct deposits onto prepaid debit cards. 

Tamika Floyd was sentenced to serve 87 months in prison on May 19.  Lanier is scheduled to be sentenced on Aug. 24 and other defendants involved in the scheme were sentenced on Aug. 7.  A sentencing date for Hinton has not been scheduled.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting the case. 

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

The owner and operator of three medical clinics located in Los Angeles pleaded guilty today to submitting more than $4.5 million in fraudulent claims to Medicare.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Acting Special Agent in Charge Steve Ryan of the U.S. Department of Health and Human Services’ Office of Inspector General of the (HHS-OIG) Los Angeles Region and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division made the announcement.

Hovik Simitian, 48, of Los Angeles, pleaded guilty before U.S. District Court Judge Beverly Reid O’Connell of the Central District of California to one count of conspiracy to commit health care fraud.  Sentencing has been scheduled for Nov. 16, 2015.

Simitian owned and operated three medical clinics that were located in the Los Angeles area:  Columbia Medical Group Inc., Life Care Medical Clinic and Safe Health Medical Clinic.  In connection with his guilty plea, Simitian admitted that, from approximately February 2010 through June 2014, he and his co-conspirators paid cash kickbacks to patient recruiters who brought Medicare beneficiaries to the clinics.  Simitian also admitted that he and his co-conspirators billed Medicare for lab tests and other services that either were not medically necessary or were not actually provided to the Medicare beneficiaries, and that, to support the bills to Medicare, he and others created false documentation reflecting that the services had been provided.

Simitian further admitted that, between February 2010 and June 2014, he and his co-conspirators submitted approximately $4,526,791 in false and fraudulent claims to Medicare.Medicare paid approximately $1,668,559 of those claims.

The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.  This case is being prosecuted by Trial Attorneys Blanca Quintero and Alexander F. Porter of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.

Simitian Plea Agreement

WASHINGTON, D.C.— U.S. Immigration and Customs Enforcement (ICE) arrested 50 fugitives sought for their roles in known or suspected human rights violations during a nationwide operation this week targeting these individuals in multiple cities across the United States.

During the operation that concluded Thursday, the ICE National Fugitive Operations Program in coordination with the ICE Human Rights Violators and War Crimes Center (HRVWCC) and ICE National Criminal Analysis and Targeting Center (NCATC), arrested these fugitives via the ICE field offices of Atlanta, Baltimore, Boston, Chicago, Detroit, Los Angeles, Miami, Newark, New York City, Philadelphia, Phoenix, San Francisco, St. Paul and Washington.

The foreign nationals arrested during this operation all have outstanding removal orders and are subject to repatriation to their countries of origin. Of the 50 known or suspected human rights violators arrested during Operation No Safe Haven II, 10 individuals are also convicted criminal aliens. This operation more than doubled the number of known or suspected human rights violators arrested during the first nationwide No Safe Haven operation, which took place in September 2014.

Those arrested across the country included:

• an individual from South America who assisted for many years in interrogations involving electric shock torture and who beat prisoners;

• an individual from Central America—an aggravated felon convicted of multiple U.S. drug-related charges—who served as a military police officer for several years and turned over victims to a regime perpetrating documented human rights violations;

• an individual from East Africa who engaged in torture as an intelligence officer in a specific government regime known to perpetrate torture, murder, and other human rights violations;

• an individual from the former Yugoslavia who arrested and interrogated victims on behalf of a paramilitary organization dedicated to ethnic cleansing;

• an individual from Asia who performed false sterilizations upon several female victim patients and supervised dozens of other false sterilizations and/or forced abortions upon other victim patients.

ICE is committed to rooting out known or suspected human rights violators who seek a safe haven in the United States. ICE's Human Rights Violators and War Crimes Center (HRVWCC) investigates human rights violators who try to evade justice by seeking shelter in the United States, including those who are known or suspected to have  participated in persecution, war crimes, genocide, torture, extrajudicial killings, and the use or recruitment of child soldiers. These individuals may use fraudulent identities to enter the country and attempt to blend into communities in the United States.

Members of the public who have information about foreign nationals suspected of engaging in human rights abuses or war crimes are urged to contact ICE by calling the toll-free ICE tip line at 1-866-347-2423 or internationally at 001-1802-872-6199. They can also email [email protected] or complete ICE’s online tip form.

Since fiscal year 2004, ICE has arrested more than 296 individuals for human rights-related violations under various criminal and/or immigration statutes. During that same period, ICE obtained deportation orders and physically removed more than 740 known or suspected human rights violators from the United States. Currently, ICE's Homeland Security Investigations has more than 140 active investigations into suspected human rights violators and is pursuing more than 1,800 leads and removal cases involving suspected human rights violators from 97 different countries.

Over the last four years, ICE's Human Rights Violators and War Crimes Center has issued more than 67,000 lookouts for individuals from more than 111 countries and stopped 161 human rights violators or war crime suspects from entering the United States.

The NCATC provided critical investigative support for this operation, including criminal and intelligence analysis from a variety of sources. The NCATC provides comprehensive analytical support to aid the at-large enforcement efforts of all ICE components.

ICE credits the success of this operation to the combined efforts of the U.S. National Central Bureau-Interpol Washington, U.S. Marshals Service, U.S. Department of State Diplomatic Security Service, U.S. Citizenship and Immigration Services, and U.S. Customs and Border Protection.

A federal grand jury has returned a four-count indictment against two Texas men alleging hate crime offenses for their roles in a Mar. 8, 2012, assault of a gay, African-American man in Corpus Christi, Texas, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division, and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

The indictment charges Jimmy Garza Jr., 32, and Ramiro Serrata Jr., 22, with conspiracy to commit hate crimes, a hate crime violation based on race and color, a hate crime violation based on sexual orientation and using a firearm during the commission of a crime of violence.  The indictment was returned under seal Aug. 12, 2015, and unsealed upon the arrest of Serrata, of Robstown, Texas, on Friday, Aug. 14, 2015.  He made his initial appearance before U.S. Magistrate Judge Jason Libby today, at which time the government requested he remain in custody pending further criminal proceedings.  A detention hearing has been set for Aug. 20, 2015.  Garza, of Corpus Christi, Texas, is currently in custody on unrelated charges and is expected to be transferred to federal custody and make an appearance on these charges on Aug. 24, 2015.

The indictment alleges that on Mar. 8, 2012, Garza and Serrata conspired to assault a gay, African-American man because of his race, color and sexual orientation.  According to the indictment, the defendants invited the man into an apartment in Corpus Christi then assaulted him while calling him racial and homophobic epithets.  Over the course of approximately three hours, the conspirators allegedly punched and kicked the man and assaulted him with various dangerous weapons, including, among other things, a frying pan, a coffee mug, a belt and a chair.  During the assault, the conspirators poured a household cleaning agent or chemical solution onto the man’s face and eyes, pistol whipped him with a handgun and whipped him with a belt, according to the allegations.

When the man began to bleed, the defendants allegedly forced him to remove all of his clothing and clean up the blood throughout the apartment.  The indictment further alleges that after the man was completely naked, the defendants sodomized him using a broom or mop and another unknown object. 

Throughout the assault, the conspirators repeatedly called the man racial and homophobic slurs and made other anti-black and anti-gay statements, according to the indictment.  The conspirators also allegedly prevented the man from leaving the apartment by physical force and threats of force.  The man eventually escaped the apartment by jumping out of a window.

An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.  

If convicted, both Garza and Serrata face a maximum sentence of life in prison. 

This case was investigated by the FBI’s Corpus Christi Resident Agency with assistance from the Corpus Christi Police Department and is being prosecuted by Trial Attorneys Jared Fishman and Nicholas Durham of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Ruben Perez of the Southern District of Texas.

The Department of Justice and the Environmental Protection Agency (EPA) today announced a settlement with the Delaware County Regional Water Quality Control Authority (DELCORA) resolving alleged Clean Water Act violations involving combined sewer overflows (CSOs) to the Delaware River and its tributaries.  In a proposed consent decree, DELCORA has agreed to develop and implement a plan to control and significantly reduce overflows from its sewer system, which will improve the water quality of the Delaware River, Chester Creek and Ridley Creek near Philadelphia, Pennsylvania.                                                                                      

Based on information submitted by DELCORA, EPA estimates that the Authority could spend as much as $200 million to implement an overflow control plan that complies with the terms of the Clean Water Act.  Once the specific pollution control measures are selected and approved, the settlement requires DELCORA to implement the plan as quickly as possible, with a 20-year deadline from when the settlement is filed in court to complete the necessary controls.  DELCORA must also pay a $1.375 million penalty for prior violations, which will be split between the United States and the Commonwealth of Pennsylvania, a co-plaintiff in this case.

“This important agreement will protect residents from sewers that discharge raw sewage and other contaminants into local waterways,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “It is the latest in a series of settlements with municipalities across the country to address aging and inadequate sewer infrastructure, particularly in older communities where residents have had to deal with sewer overflows for generations.  Agreements like this one are a victory for environmental justice.”

“This settlement means cleaner water for communities in the greater Philadelphia area, including many that have historically been overburdened by water pollution,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance.  “These communities have demonstrated how effective long-term planning and public participation can protect clean water in a way that’s achievable and cost effective.”

The settlement stands to address longstanding problems with DELCORA’s combined sewer system, which when inundated with stormwater, discharges raw sewage, industrial waste, nitrogen, phosphorus and polluted stormwater into Chester Creek, Ridley Creek and the Delaware River.  According to DELCORA, the volume of combined sewage that overflows from the system is approximately 739 million gallons annually. 

Exposure to raw sewage can cause a range of illness from mild gastroenteritis, causing stomach cramps and diarrhea, to life-threatening ailments such as cholera, dysentery, infectious hepatitis and severe gastroenteritis.  Exposure to untreated sewage, therefore, presents a serious health risk to those who may come into contact with it.  Groups facing greater risks include children, the elderly, immune-compromised groups and pregnant women.

DELCORA’s wastewater facilities serve approximately 500,000 people in the greater Philadelphia area, including many low-income communities.  Once fully implemented, the settlement will help reduce the direct exposure of low-income and minority populations in the service area to raw sewage.  DELCORA must also seek input from the public on the long-term control plan, including from Chester Creek and surrounding communities that have historically been overburdened by pollution.

The consent decree also requires DELCORA to notify the public of CSO discharges using a visual notification system, including warning lights and flags at CSO outfalls, where a sewer empties into local waterways.

Keeping raw sewage and contaminated storm water out of the waters of the United States is one of EPA’s National Enforcement Initiatives.  EPA is working to reduce discharges from sewer overflows by securing commitments from cities to implement timely, affordable solutions.

The proposed consent decree is subject to a 30-day public comment period and court approval after it is published in the Federal Register. 

For more information on this settlement or to read the proposed consent decree, go to: http://www.justice.gov/enrd/consent-decrees

The U.S. District Court for the Northern District of Iowa today entered a consent decree of permanent injunction against Iowa Select Herbs LLC, of Cedar Rapids, Iowa, its president and CEO, Gordon L. Freeman, and a partial owner, Lois A. Dotterweich, to prevent the distribution of adulterated dietary supplements, announced Principal Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.

Iowa Select Herbs manufactures and distributes a variety of dietary supplements, consisting primarily of extracts from various plants, including papaya leaf, echinacea, elderberry and nettle leaf.  The firm also produces a product called “Cold BeGone,” which purports to be a complex of natural ingredients.  The company and its owners marketed their products online and through online marketplace websites, such as eBay Inc., Amazon.com Inc. and buy.com.  They also sold their products through a retail location in Cedar Rapids. 

The department filed a complaint in the Northern District of Iowa at the request of the U.S. Food and Drug Administration (FDA) alleging that the company’s dietary supplements are manufactured under conditions that are inadequate to ensure the quality of its products.  The complaint also alleged that the firm’s dietary supplements qualify as unapproved and misbranded drugs in that they claim to treat or prevent a variety of diseases, including cancer, malaria and heart disease, but have never been submitted to FDA for approval, and have never been found safe and effective for those purposes. 

On Aug. 13, the parties filed a consent decree of permanent injunction by which the defendants agreed to settle the litigation.  The consent decree was entered by the court today and requires the defendants to cease all production and distribution of the adulterated, unapproved and misbranded products, and to recall their drugs and dietary supplements.  Further, the defendants have agreed to cease the manufacture and distribution of any dietary supplement or drug and will not be allowed to resume such activities without FDA approval.

The government is represented by Trial Attorney Heide L. Herrmann of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Laura Akowuah of the Department of Health and Human Services’ Office of General Counsel-Food and Drug Division and Assistant U.S. Attorney Jacob Schunk of the Northern District of Iowa.

Attorney General Loretta E. Lynch released the following statement Sunday on the passing of civil rights leader Julian Bond:

“Throughout his remarkable life, Julian Bond was a leader, a trailblazer, and an icon in this country’s enduring fight for civil rights and equal justice for all people.  Bond’s career reflects his extraordinary gift for turning conviction into action – from helping to establish the Student Nonviolent Coordinating Committee and the Southern Poverty Law Center to representing his community in the Georgia General Assembly; and from leading the NAACP to sharing his vision and intellect through his writing, teaching, and public commentary.  I will never forget hearing Bond speak when I was a student in college, and he has remained a personal hero to me ever since.  For me and for so many others, Bond’s words and deeds reached into our hearts and inspired us to take up his noble causes of equality, justice, and freedom.  The legion of committed and passionate advocates he leaves behind is just one of many ways that his legacy will live on – by advancing his ongoing work, by spreading his timeless message, and by lifting up his example for all to see for generations to come.”

The Justice Department today released its first annual report following former Attorney General Eric Holder’s pledge in February 2014 to make public information related to law enforcement requests for information from, or records of, members of the news media.

The report exemplifies the department’s continuing commitment to increased transparency in its interactions with the media and to ensure that newsgathering activities by members of the news media are not unreasonably impaired by law enforcement activities.  The report covers authorizations made during the 2014 calendar year and includes information provided by department divisions, including the U.S. Attorneys’ Offices.

“Today’s report is an important step in the Justice Department’s ongoing efforts to promote the freedom of the press, to keep the American people informed and to improve transparency and accountability regarding media-related process,” said Attorney General Loretta E. Lynch.  “In addition to the statistical data former Attorney General Holder pledged to disclose, I have asked the department to provide information about each case or matter listed so that the public can better understand how the department is striking the proper balance among several vital interests: protecting national security, ensuring public safety, promoting effective law enforcement and the fair administration of justice and safeguarding the essential role of the free press in fostering government accountability and an open society.”

A copy of the report can be found here.

Today, U.S. District Court of the District of Arizona granted a motion by the Department of Justice’s Civil Rights Division to intervene in a private lawsuit, Melendres v. Arpaio, brought against Maricopa County Sheriff Joseph M. Arpaio.  In Melendres, the federal court found in May 2013 that the Maricopa County Sheriff’s Office (MCSO) had engaged in unlawful discrimination against Hispanic persons in its traffic enforcement operations in violation of the Fourth and 14th Amendments to the U.S. Constitution and Title VI of the Civil Rights Act of 1964.  Last month, the department reached a partial settlement in a lawsuit against Maricopa County and Sheriff Arpaio, resolving claims not addressed in this intervention. Moving forward, the department, court, plaintiffs and independent monitor can work to ensure the Sheriff’s office implements the court-ordered reforms.

In October 2013, the court issued an injunction setting forth specific reforms for MCSO’s law enforcement practices and appointed an independent monitor to oversee implementation of the injunction.  In June, the U.S. District Court of the District of Arizona granted the department’s motion for summary judgment on its discriminatory policing claim, based on the court’s findings in Melendres.  The department filed for intervention in Melendres so that it may enforce the court’s injunction and any future remedies ordered by the court to address Sheriff Arpaio’s and MCSO’s alleged violations of the court’s orders. 

“As a party in the Melendres case, the Department of Justice can now work together with the court, the plaintiffs and the independent monitor to ensure that the Maricopa County Sheriff’s Office meaningfully implements the court-ordered reforms so that the constitutional rights of all people of Maricopa County are protected,” said Deputy Assistant Attorney General Mark Kappelhoff of the Civil Rights Division.  “The Constitution guarantees that all people receive the equal protection of the law, and the department is now positioned to ensure that this important right is upheld.”

The department has had an ongoing parallel lawsuit against Sheriff Arpaio and Maricopa County since May 2012.  That lawsuit alleged four patterns or practices of unconstitutional conduct: discriminatory policing against Hispanic persons in MCSO’s saturation patrols, general traffic enforcement and worksite operations targeting Hispanic immigrants; detentions in violation of the Fourth Amendment during MCSO’s worksite raids targeting Hispanic immigrants; failures in the provision of language access to Hispanic limited English proficient jail inmates; and retaliatory police action against critics of Sheriff Arpaio and MCSO.  

Last month, on July 17, the department entered into settlement agreements to resolve the claims in its lawsuit that were not addressed by the summary judgment–one agreement addressing MCSO’s unlawful detentions and retaliation, and a separate agreement addressing MCSO’s language access policies and practices in its jails.  On the same date, the parties filed a joint motion requesting that the U.S. District Court of the District of Arizona approve and agree to enforce the settlement agreement concerning MCSO’s unlawful detentions and retaliation.  That motion is still pending before the court. 

The injunction in Melendres, the settlement agreements in the Justice Department’s separate case and a description of the department’s previous investigation of and litigation against the Maricopa County Sheriff Arpaio and Maricopa County, will be available at: http://www.justice.gov/crt/about/spl/

The Justice Department today announced a settlement agreement under the Americans with Disabilities Act (ADA) to make the Golden Corral in Farmington, New Mexico, accessible to persons with disabilities.  The Golden Corral was investigated in conjunction with the department’s Project Civic Access, a Civil Rights Division initiative to ensure that cities, towns, counties and local businesses throughout the country comply with the ADA.  The investigation revealed that the restaurant required architectural modifications to make it accessible to persons with disabilities.

Golden Corral Corp., headquartered in North Carolina, worked cooperatively with the department after the architectural barriers to access were identified and agreed to remedy the barriers in compliance with the 2010 ADA Standards for Accessible Design (2010 standards).  Under the agreement, the Golden Corral will physically modify its:    

• designated accessible parking spaces;

• counter;

• men’s Room signage, mirrors, coat hook and accessible toilet stall; and

• women’s Room signage, coat hook and accessible toilet stall.

“As we continue our yearlong celebration of the 25th anniversary of the enactment of the ADA, the Civil Rights Division of the Justice Department renews its commitment to the full and fair enforcement of this historic civil rights law, for large and small venues, alike,” said Principal Deputy Attorney General Vanita Gupta, head of the Civil Rights Division.  “Accessibility in local businesses is equally important so that people with disabilities be able to enjoy goods and services in their own neighborhood.”

The ADA protects individuals with disabilities from discrimination by public accommodations, such as restaurants, and requires that persons with disabilities have full and equal enjoyment of a restaurant’s goods, services, facilities, privileges and advantages.  The ADA also requires restaurants to make accommodations for persons with disabilities.  In addition, businesses have an ongoing obligation to remove architectural barriers to make their businesses accessible to persons with disabilities.  The department and Small Business Administration have provided an ADA Guide for Small Businesses describing the obligations under the ADA, as well as tax credits and deductions available, at http://www.ada.gov//smbustxt.htm.  People interested in finding out more about the ADA or this agreement can call the Justice Department’s toll-free ADA Information Line at 1-800-514-0301 or 1-800-514-0383 (TTY), or access its ADA Web site at www.ada.gov.

A U.S. citizen charged in connection with the operation of a series of fraudulent business opportunities based in Costa Rica was sentenced to prison today in Miami, the Justice Department announced. 

John White, aka Gregory Garrett, was sentenced by U.S. District Court Judge Patricia A. Seitz of the Southern District of Florida to serve 70 months in prison and five years of supervised release.  White was also ordered to pay $6,412,006.19 in restitution.  White is one of 12 defendants charged in connection with a series of business opportunity fraud ventures that operated in Costa Rica.  Nine of those other defendants have been convicted in the United States with sentences ranging from three to 16 years in prison and the two remaining defendants are not yet in the custody of the United States.

“The defendants in this scheme promised victims the American dream while knowing they in fact were being ripped off,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “We will continue to prosecute those who would deprive Americans of their savings just so they can make a quick buck.” 

White was indicted by a federal grand jury in Miami on Nov. 29, 2011, arrested in Costa Rica in 2012, extradited to the United States in 2015 and pleaded guilty on April 29, 2015, to one count of conspiracy to commit mail and wire fraud in connection with the business opportunity scheme. 

As part of his guilty plea, White admitted that from 2005 to 2008, he and his co-conspirators fraudulently induced individuals in the United States to buy business opportunities in USA Beverages Inc., Twin Peaks Gourmet Coffee Inc., Cards-R-Us Inc., Premier Cards Inc. and The Coffee Man Inc.  White and his co-conspirators claimed that these opportunities would allow purchasers to sell coffee or greeting cards from display racks located at other retail establishments.  The business opportunities cost thousands of dollars each, with most purchasers paying at least $10,000.  Each company operated for several months and after one company closed, the next opened.

White admitted that the conspiracy used various means to make it appear to potential purchasers that the businesses were located entirely in the United States.  The companies used bank accounts, office space and other services in the Southern District of Florida and elsewhere.  In reality, White and his co-conspirators operated out of call centers in Costa Rica. 

White admitted that he and his co-conspirators made numerous false statements to potential purchasers of the business opportunities, including that purchasers likely would earn substantial profits; that prior purchasers of the business opportunities were earning substantial profits; that purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards and beverages; and that the business opportunity worked with locators familiar with the potential purchaser’s area who would secure or had already secured high-traffic locations for the potential purchaser’s merchandise stands.  Potential purchasers also were falsely told that the profits of the companies were based in part on the profits of the business opportunity purchasers, thus creating the false impression that the companies had a stake in the purchasers’ success and in finding good locations.

As alleged in the indictment against White and others, the companies employed various types of sales representatives, including fronters, closers and references.  A fronter spoke to potential purchasers when the prospective purchasers initially contacted the company in response to an advertisement.  A closer subsequently spoke to potential purchasers to close deals and references spoke to potential purchasers about the financial success they had purportedly experienced since purchasing one of the business opportunities.  The companies also employed locators, who were typically characterized by the sales representatives as third parties who worked with the companies to find high-traffic locations for the prospective purchaser’s merchandise display racks.  White admitted that he worked as a fronter and reference using aliases.

“This international and domestic investigation shows the Postal Inspection Service’s resolve to protect Americans from business opportunity scams,” said Postal Inspector in Charge Ronald Verrochio of the U.S. Postal Inspection Service (USPIS) Miami Division. 

Principal Deputy Assistant Attorney General Mizer commended the investigative efforts of USPIS.  The case is being prosecuted by Trial Attorney Alan Phelps of the Civil Division’s Consumer Protection Branch.

Company Previously Paid $4.6 Million in Restitution as Part of Non-Prosecution Agreement in Related Criminal Investigation

PC Specialists Inc., doing business as Technology Integration Group (TIG), has agreed to pay the United States $5.9 million to settle allegations that the company inflated the price of computers sold through another company to the National Nuclear Security Administration (NNSA) for use at Sandia National Laboratories in Albuquerque, New Mexico.  TIG, headquartered in San Diego, buys computers and other technology products for resale to other purchasers.

“The resources available to achieve the important goals carried out by our national laboratories are precious and limited,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “Today’s settlement demonstrates that diverting funds from the critical mission of the laboratories by inflating costs and making false claims or causing others to make false claims for government funds will not be tolerated.”

From 2003 to 2013, TIG sold Dell computers to Sandia Corporation for resale to the United States under Sandia’s contract with the NNSA.  The NNSA purchased the computers for use at Sandia National Laboratories.  The United States alleged that TIG knowingly inflated the amounts it charged Sandia by failing to give credits for rebates and discounts it received from Dell as required by its contract and causing false claims to the government for the inflated prices.  

“Fraud involving government contracts will be zealously pursued in New Mexico,” said U.S. Attorney Damon P. Martinez of the District of New Mexico.  “The U.S. Attorney’s Office and its law enforcement partners are committed to recovering losses, preventing fraud, holding accountable those who exploit government contracts and ensuring that the taxpayers’ monies are properly spent.”

In a separate but related matter, in April 2015, TIG entered into a non-prosecution agreement with the U.S. Attorney’s Office of the District of New Mexico regarding allegations that three employees in TIG’s Albuquerque branch office engaged in a scheme to defraud the United States by inflating the amounts it charged Sandia for computers.  The non-prosecution agreement in that matter required TIG to terminate the employment of the three employees in its Albuquerque branch office – a vice president, a senior account executive and an accounts executive – who participated in and profited from the scheme.  The non-prosecution agreement also required TIG to retain and pay for an independent monitor selected by the U.S. Attorney’s Office who is responsible for monitoring TIG’s compliance with the agreement, and TIG policies, procedures and training relating to federal government contracts over the agreement’s three-year term.  

The allegations resolved by the civil settlement announced today arose from a lawsuit filed by Maverick Granger, a former TIG executive in Albuquerque, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and share in the recovery.  Mr. Granger’s share of the settlement has not yet been determined. 

These resolutions were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of New Mexico and the U.S. Department of Energy’s Office of Inspector General (DOE-OIG).  The criminal investigation was conducted by DOE-OIG, the FBI’s Albuquerque Division and the Albuquerque Office of the Internal Revenue Service-Criminal Investigation.

The False Claims Act lawsuit is captioned United States ex rel. Granger v. PC Specialists, Inc. d/b/a/ Technology Integration Group, No. 14-cv-00633 (D.N.M.).  The claims resolved by today’s civil settlement and the earlier non-prosecution agreement are allegations only; there has been no determination of guilt or liability.

North Carolina-based seafood processor and wholesale distributor Alphin Brothers Inc., was sentenced today in federal court for falsely labeling imported shrimp, the Justice Department announced.

Pursuant to plea agreement entered on Feb. 10, 2015, Alphin Brothers Inc., pleaded guilty to one felony count of making or submitting false records in violation of the Lacey Act.  Court documents state that an Alphin Brothers employee, who purchased and sold shrimp on the company’s behalf, directed Alphin Brothers employees and employees of another seafood processing facility to falsely label approximately 25,000 pounds of farm-raised imported shrimp as wild-caught product of the United States.  The falsely labeled shrimp was later sold by Alphin Brothers in interstate commerce to customers in Louisiana.

Consistent with the plea agreement, the court sentenced Alphin Brothers Inc., to pay a criminal fine of $100,000 and to forfeit approximately 21,450 pounds of shrimp.  The company also will serve three years of probation, including a special condition requiring the company to implement a training program to educate its employees on federal labeling requirements, as they relate to business activities at the company. 

Federal regulations require seafood retailers to provide customers with notice of the country of origin and the method of production, wild-caught or farm-raised, of shrimp and other shellfish.  These regulations are known by the acronym COOL, which stands for “country of origin labeling.”  The COOL regulations allow country of origin and method of production information to be provided in any format, as long as it is placed in a conspicuous location such that it will likely be read and understood by a customer under normal circumstances.  Many shrimp processors and wholesale distributors, including Alphin Brothers Inc., print country of origin and/or method of production information directly on packaging, such as boxes, intended for retail sale.

Under the COOL regulations, shrimp may be labeled as “product of the United States” only if they were harvested and processed in the United States or by a United States-flagged vessel and have not undergone any substantial transformation outside the United States.  Packing, repacking, thawing, freezing, cleaning, peeling, deveining, grading, cooking, or soaking shrimp in sodium tripolyphosphate solution does not constitute a substantial transformation under the COOL regulations.

The Lacey Act is a federal law making it illegal to make or submit any false record, account, or label for, or any false identification of, any fish or wildlife that has been or is intended to be imported, transported, purchased or received from any foreign country, or transported in interstate or foreign commerce.  The maximum penalties for a felony violation of the Lacey Act include up to five years of imprisonment and $250,000 in fines for individual defendants and up to $500,000 in fines for corporate defendants.

The case was investigated by the National Oceanic and Atmospheric Administration Office of Law Enforcement, with assistance from the Louisiana Department of Wildlife and Fisheries.  The case was prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina.

Two tax return preparers with offices located in California, Maryland and New York were sentenced today in Los Angeles for facilitating an offshore tax fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. 

David Kalai was sentenced to serve 36 months in prison to be followed by three years of supervised release, with a condition of home confinement to last the entire term of release, and ordered to pay a $286,000 fine, and Nadav Kalai, David Kalai’s son, was sentenced to serve 50 months in prison to be followed by three years of supervised release, and ordered to pay a $10,000 fine.  The defendants’ sentences were imposed by U.S. District Judge Terry J. Hatter Jr. of the Central District of California.

On Dec. 19, 2014, a federal jury in Los Angeles convicted the Kalais of one count of conspiracy to defraud the Internal Revenue Service (IRS).  The Kalais were also each convicted of two counts of willfully failing to file a Report of Foreign Bank and Financial Accounts (FBAR).  An alleged co-conspirator, David Almog, who is charged in the second superseding indictment, remains a fugitive.  The Kalais advised and assisted their high net-worth clients in concealing millions of dollars of assets and income in secret foreign bank accounts and filing false federal income tax returns.  The defendants also maintained a secret offshore account of their own at Bank Leumi in Luxembourg in the name of a foreign sham corporation and failed to disclose the account to the IRS or the U.S. Treasury.

“The sentences imposed today make it clear that the department is aggressively prosecuting financial professionals like the Kalais, who assist U.S. taxpayers in concealing assets offshore and evading their tax and reporting obligations,” said Acting Assistant Attorney General Ciraolo.  “The days of hiding behind numbered accounts and sham corporations are over; accountholders are coming in, accepting responsibility and cooperating against their accountants, attorneys and advisors who actively facilitated their criminal conduct.”

“Today’s sentencing of David and Nadav Kalai is another victory for American taxpayers as IRS-Criminal Investigation (CI) continues its pursuit to stop offshore tax evasion schemes and bring these criminals to justice,” said Chief Richard Weber of IRS-CI.  “It is becoming increasingly difficult for criminals to hide their money offshore and IRS-CI will continue to level the playing field for all taxpayers by ensuring we are all playing by the same rules.”

According to the second superseding indictment and evidence introduced at trial, the Kalais were principals of United Revenue Service Inc. (URS), a tax return preparation business with 12 offices located throughout the United States.  David Kalai worked primarily at URS’ former headquarters in Newport Beach, California, and later at URS’ location in Costa Mesa, California.  Nadav Kalai worked out of URS’ headquarters in Bethesda, Maryland, as well as the locations in Newport Beach and Costa Mesa.

U.S. citizens, resident aliens and permanent legal residents have an obligation to report to the IRS on Schedule B of the U.S. Individual Income Tax Return, Form 1040, whether they had a financial interest in, or signature authority over, a financial account in a foreign country in a particular year by checking “Yes” or “No” in the appropriate box and identifying the country where the account was maintained.  They are further obligated to report all income earned from the foreign financial account on the tax returns.  Separately, U.S. citizens, resident aliens and permanent legal residents with a foreign financial interest in, or signatory authority over, a foreign financial account worth more than $10,000 in a particular year must also file an FBAR with the U.S. Treasury by June 30 of the following year disclosing such an account. 

Evidence introduced at trial established that the co-conspirators purposefully prepared false individual income tax returns for their URS clients that did not disclose the clients’ foreign financial accounts nor report the income earned from those accounts.  In order to conceal the clients’ income, ownership and control of assets from the IRS, the co-conspirators incorporated offshore companies in Belize and elsewhere and helped clients open secret bank accounts at the Luxembourg locations of two Israeli banks, Bank Leumi and Bank B.  Bank Leumi is a large financial institution headquartered in Tel-Aviv, Israel, with worldwide branches.  Bank B is also a financial institution headquartered in Tel-Aviv with a worldwide presence.

The sham corporations that the co-conspirators incorporated in Belize and elsewhere were used to act as named accountholders on the secret Israeli bank accounts.  The co-conspirators then recommended and facilitated the transfer of client funds to the secret accounts and prepared and filed tax returns that falsely reported the money sent offshore as a false investment loss or a false business expense, or entirely omitted any income earned by a client from a foreign source.  The Kalais also failed to disclose the clients’ secret accounts on tax returns that they prepared, and caused the clients to fail to file FBARs with the U.S. Treasury as required.

Three URS clients who testified at the Kalais’ trial have pleaded guilty to tax felonies arising from their participation in the scheme.  On July 1, 2013, Alexei Iazlovsky, a client of URS and Nadav Kalai, pleaded guilty in U.S. District Court in Los Angeles to signing and filing a false federal income tax return for tax year 2008.  According to court documents and evidence introduced at trial, Nadav Kalai facilitated the incorporation of a nominee Belize corporation for Iazlovsky, assisted Iazlovsky with setting up an offshore account in Luxembourg at one of the Israeli banks that was held in the name of the Belizean corporation and prepared false federal income tax returns, which Iazlovsky signed and filed with the IRS, that concealed the existence, assets and income of Iazlovsky’s offshore account.  On Nadav Kalai’s advice, Iazlovsky diverted a total of $2.6 million in untaxed business receipts from Russian clients to his undeclared bank account in Luxembourg.

On July 17, 2013, Moshe Handelsman pleaded guilty in U.S. District Court in San Jose, California, to signing and filing a false income tax return for the 2007 tax year.  According to court documents and evidence introduced at trial, Handelsman was David Kalai’s client since the 1990s.  On David Kalai’s advice, Handelsman used three foreign bank accounts held in the names of two different sham foreign corporations to reduce his taxes.  The last of those accounts was held at the Tel-Aviv branch of one of the Israeli banks.  Nadav Kalai was Handelsman’s tax return preparer from 2003 through 2007.  During those years, Handelsman sent approximately $1.47 million offshore, which was fraudulently deducted as a business expense on corporate tax returns prepared by Nadav Kalai.

On Feb. 2, Baruch Fogel pleaded guilty in U.S. District Court in Los Angeles to failing to file an FBAR declaring his Bank Leumi account in Luxembourg.  According to court documents and evidence introduced at trial, David Kalai devised a scheme to reduce Fogel’s income taxes in 2002 and 2003 by using a sham offshore corporation and a secret offshore bank account at Bank Leumi Luxembourg held in the name of the offshore corporation.  David Kalai’s scheme involved obtaining $8 million in loans from Bank Leumi USA and transferring that money through one or more of Fogel’s U.S. businesses to Fogel’s Luxembourg bank account.  The $8 million in transfers were designed to make it appear that one or more of Fogel’s U.S. businesses incurred business expenses by paying Fogel’s offshore corporation.  Once the paper trail was created, $8 million was fraudulently deducted as business expenses on Fogel’s corporate tax returns prepared by URS.  David Kalai told Fogel not to disclose his control of the foreign bank account to U.S. authorities. 

The evidence at trial also established that the Kalais each failed to file an FBAR for calendar years 2008 and 2009 with respect to a foreign account held at Bank Leumi in Luxembourg.  According to the bank’s internal records from Luxembourg, the Kalais were the true owners of the account, which was held in the name of Anack Ltd., a nominee Belizean corporation.  In 2008 and 2009, their offshore bank account had more than $300,000 on deposit. 

Acting Assistant Attorney General Ciraolo commended the special agents of IRS-CI, who investigated the case, and Trial Attorneys Christopher S. Strauss and Ellen M. Quattrucci of the Tax Division, who prosecuted the case.  Ciraolo also thanked Assistant U.S. Attorney and Chief of the Tax Division Sandra R. Brown of the U.S. Attorney’s Office of the Central District of California and her office for their substantial support and assistance.             

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

The Department of Justice and the Department of Health and Human Services (HHS) today issued joint technical assistance to state and local child welfare agencies and courts on the requirements of Title II of the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act.  The technical assistance released today is part of a new partnership between HHS and the Department of Justice to help child welfare agencies protect the welfare of children and ensure compliance with nondiscrimination laws.                                                                                                                         

The technical assistance addresses disability discrimination complaints that HHS and the Department of Justice have received from parents who have had their children taken away from them as well as individuals who have not been given equal opportunities to become foster or adoptive parents.  Noting that the goals of child welfare and disability non-discrimination are complementary, the technical assistance provides an overview of Title II of the ADA and Section 504 and examples about how to apply them in the child welfare system, including child welfare investigations, assessments, guardianship, removal of children from their homes, case planning, adoption, foster care and family court hearings, including termination of parental rights proceedings.  It also underscores that Title II and Section 504 prohibit child welfare agencies from acting based on unfounded assumptions, generalizations, or stereotypes regarding persons with disabilities.

“This technical assistance reflects an important milestone in the ongoing effort to realize equality for individuals with disabilities in all aspects of our society,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “The ADA and Section 504 ensure that all government providers of programs, activities, and services treat people with disabilities in a fair and equal manner.  State and local agencies and courts are our partners in defending the rights of people with disabilities, and this guidance gives them an improved understanding of how to uphold those rights more effectively.”

“Ensuring nondiscrimination in the child welfare system is an Office for Civil Rights (OCR) priority and we’re very pleased to join with the HHS Administration on Children and Families and the Department of Justice in this important initiative,” said Director Jocelyn Samuels of HHS’ Office for Civil Rights.  “It’s particularly fitting that we are beginning this initiative with guidance on the rights of parents and prospective parents with disabilities given our recent investigation with the Department of Justice in this area and as we commemorate the 25th Anniversary of the ADA.  This guidance will help ensure that parents and prospective parents are not discriminatorily deprived of custody of their children, or denied the opportunity to adopt or serve as foster parents, because of stereotypes and unfounded assumptions about persons with disabilities, which we have seen in our complaints.”

“Providing this technical assistance to state and local agencies and courts will help ensure that families with a member with a disability get equal access to vital child welfare services,” said Acting Assistant Secretary Mark Greenberg of HHS’ Administration for Children and Families (ACF).

The Children’s Bureau in the Department of Health and Human Services, ACF administers funding for child welfare agencies and courts.  ACF also provides guidance and technical assistance to child welfare agencies regarding child welfare law.  OCR and the Civil Rights Division of the Department of Justice are responsible for protecting the rights of individuals with disabilities by enforcing Title II of the ADA and Section 504 of the Rehabilitation Act.  These laws prohibit discrimination on the basis of disability, and require providers of government programs, services and activities to make reasonable modifications to their policies and practices when necessary to avoid discrimination on the basis of disability, unless such modifications would fundamentally alter the nature of the program or the services.

Additional information about the Civil Rights Division of the Department of Justice is available at www.justice.gov/crt.  Additional information about the Department of Health and Human Services, Office of the Administration for Children and Families, Children’s Bureau is available at www.acf.hhs.gov/cb.  Additional information about the Department of Health and Human Service’s Office for Civil Rights is available at www.hhs.gov/ocr/.

A Miami-area pharmacy owner pleaded guilty today to submitting almost $1.6 million in fraudulent claims to Medicare.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.

Tamara Esponda, 47, of Miami, pleaded guilty before U.S. District Judge James I. Cohn of the Southern District of Florida to one count of health care fraud.  Sentencing has been scheduled for Nov. 13, 2015.

Esponda owned Biomax Pharmacy Inc.  In connection with her guilty plea, Esponda admitted that, between October 2012 and September 2013, Biomax Pharmacy submitted almost $1.6 million in fraudulent claims to Medicare for prescription drugs that were not prescribed by physicians, not medically necessary, not purchased by Biomax Pharmacy and not provided to Medicare beneficiaries.  Medicare paid 100 percent of the claims.

According to Esponda’s admissions, she and her accomplices stole or illegally paid for unique identifying information of Medicare beneficiaries, and used this information to submit the fraudulent claims.  Esponda also admitted that she controlled Biomax Pharmacy’s bank accounts, and that she transferred the payments received from Medicare to herself and her accomplices.

This case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida.  This case is being prosecuted by Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion.  In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Team, go to: www.stopmedicarefraud.gov.

Esponda Plea Agreement

Gerard Kruse, 42, a social worker who lives in Oviedo, Florida, pleaded guilty today in federal court in Brooklyn, New York, to 13 Lacey Act violations for his role in the trade of illegally caught snakes, the Justice Department’s Environment and Natural Resources Division announced.

Kruse pleaded guilty to seven counts of illegal transport of wildlife and six counts of illegal receipt of wildlife, which under the facts of the case are misdemeanors under the Lacey Act.  At the time of the crimes, Kruse was living in Douglaston, New York.  In court documents, Kruse admitted that between 2008 and 2012, he knowingly participated in violations, which involved the illegal collection, transport and receipt of 59 snakes that were collected from and protected by various states, such as New Jersey, California and Oregon.  Under the Lacey Act, it is illegal to knowingly ship or receive snakes in interstate commerce that were taken in violation of state law.  During the course of his conduct, Kruse personally collected protected snakes and shipped them to collectors in other states.  Sometimes he received money for the reptiles; other times he bartered snakes.  In addition, Kruse would solicit snakes from out-of-state collectors, while knowing that those collectors had procured their snakes illegally.  The last charge of the information deals with Kruse’s involvement in the shipment of a diamondback rattlesnake from Texas to Douglaston in a coffee can, in violation of U.S. Postal regulations.   

The Lacey Act is an important statute for protecting our nation’s wildlife against those who make enforcement of state laws difficult by crossing state lines with protected species,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “All of our protected species, including reptiles, are important to our ecosystems and must be shielded from such illegal trafficking. The Justice Department will continue to vigorously support efforts against domestic wildlife trafficking.”

According to the terms of the pela agreement, the government will seek 13 months of home confinement with electronic monitoring, a request which is unopposed by the defense.  In addition, Kruse has agreed to be placed on probation and subject to special conditions such as forfeiture of his snakes and being banned from the collection, sale and trade of reptiles and amphibians.  Terms of Kruse’s sentence that the parties could not agree on will be decided at a sentencing hearing set for Dec. 15, 2015.

The case was investigated by agents of the U.S. Fish and Wildlife Service as part of Operation Kingsnake.  The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division.

9,000 Identities Stolen from the U.S. Army, Alabama State Agencies, a Georgia Call Center and a Georgia Company

Eight residents of Alabama and Georgia were sentenced today to serve more than 31 years in  prison, collectively, for their roles in a $24 million stolen identity refund fraud (SIRF) conspiracy, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.

U.S. District Court Judge Kristi K. DuBose of the Southern District of Alabama imposed the following sentences:

• Tracy Mitchell, of Phenix City, Alabama, was sentenced to serve 159 months in prison, three years of supervised release and ordered to pay a forfeiture judgment in the amount of $329,242, which was seized in cash from her residence;
• Talarius Paige, of Phenix City, was sentenced to serve 60 months in prison, three years of supervised release and ordered to pay $762,512 in restitution to the Internal Revenue Service (IRS);
• Mequetta Snell-Quick, of Columbus, Georgia, was sentenced to serve 24 months and one day in prison, two years of supervised release and ordered to pay $199,471 in restitution to the IRS ;
• Latasha Mitchell, of Phenix City, was sentenced to serve 36 months in prison, two years of supervised release and ordered to pay $513,821 in restitution to the IRS ;
• Dameisha Mitchell, of Phenix City, was sentenced to serve 65 months in prison, three years of supervised release and ordered to pay $440,176 in restitution to the IRS;
• Sharonda Johnson, of Phenix City, was sentenced to serve 24 months in prison, two years of supervised release and ordered to pay $440,176 in restitution to the IRS;
• Patrice Taylor, of Midland, Georgia, was sentenced to serve 12 months and one day in prison, two years of supervised release and ordered to pay $28,783 in restitution to the IRS; and
• Cynthia Johnson, of Phenix City, was sentenced to two years of probation and ordered to pay $5,047 in restitution to the IRS.

The sentencing of Keisha Lanier, of Seale, Alabama, is scheduled on Aug. 24.  Tamaica Hoskins, a co-defendant who was charged in the same indictment, was sentenced on June 25 to serve 145 months in prison.  Tamika Floyd, a defendant in a related case, was sentenced on May 19 to serve 87 months in prison.

“These conspirators abused their access to government and private databases to steal thousands of identities, including those of soldiers deployed in Afghanistan, and filed false tax returns seeking over $20 million in fraudulent refund claims,” said Acting Assistant Attorney General Ciraolo.  “The significant prison sentences and financial penalties imposed today reflect the seriousness of this criminal conduct and send a clear message that those who victimize U.S. citizens and steal from the U.S. Treasury will be prosecuted to the fullest extent of the law.”

According to information in court documents and at the sentencing hearings, between January 2011 and December 2013, Lanier and Tracy Mitchell led a large-scale identity theft ring in which Lanier, Tracy Mitchell and their co-defendants filed more than 9,000 false individual federal income tax returns that claimed more than $24 million in fraudulent claims for tax refunds.  The IRS paid out close to $10 million in refunds on these fraudulent claims.  The defendants obtained the stolen identities from various sources, including from the U.S. Army, several Alabama state agencies, a Georgia call center and employee records from a Georgia company.  Mitchell worked at the hospital located at Fort Benning, Georgia, where she had access to the identification data of military personnel, including soldiers who were deployed to Afghanistan.  She stole the personal information of soldiers and used that information to file false tax returns.

“Today’s sentencing of eight criminals, who used the identities of American service members and hospital patients to enrich themselves by stealing tax refunds, demonstrates the depths of how far criminals will stoop and the extent to which IRS-CI will go to fight identity theft,” said Chief Richard Weber of IRS-Criminal Investigation (IRS-CI).  “We will use every available resource in collaboration with our law enforcement partners to combat these serious crimes.”

“Today's sentences show our unwavering commitment to aggressively pursue cases of cybercrime and protect the men and women serving our nation,” said Director Daniel Andrews of the U.S. Army Criminal Investigation Command's (CID) Computer Crime Investigative Unit.  “These defendants stole personal identities for monetary gain, and their sentences should resonate with would-be criminals that we can, and we will, hold them accountable for their crimes.”Floyd stole personal information from two Alabama state agencies and provided those names to Lanier.  Lanier provided those names to Tracy Mitchell, Latasha Mitchell, Paige and others to file false tax returns.  Lanier also obtained stolen identities from the Alabama Department of Corrections.  Paige and Taylor worked in a call center for a payment-processing company in Columbus and stole identities.  Paige, in turn, used those identities to file false tax returns, some of which he filed from Tracy Mitchell’s residence.  Tracy and Latasha Mitchell also obtained employee files from a Columbus company and used those identities to file false tax returns.

In order to file the false tax returns, the defendants obtained several IRS Electronic Filing Numbers in the names of sham tax businesses.  On behalf of those sham tax businesses, the defendants applied for bank products from various financial institutions.  Under the guise of a legitimate business account, the institutions mailed blank check stock to the defendants’ homes.  The defendants directed the IRS to pay anticipated tax refunds to prepaid debit cards, in U.S. Treasury checks and to financial institutions, which in turn issued the tax refunds via prepaid debit cards or checks.  When the refunds were sent through the financial institutions, the defendants simply printed out the refund checks from the check stock that had been sent to their homes.

After a period of time, the financial institutions stopped permitting the defendants to print out the tax refund checks.  To continue the scheme, Tracy Mitchell and members of her family recruited U.S. Postal Service employees.  The corrupt postal employees specified addresses along their postal routes to have the U.S. Treasury checks mailed, then obtained those checks and turned them over to the defendants for a fee.

The scheme also involved a complex money laundering operation.  Almost $10 million in fraudulent tax refund checks were cashed at several businesses located in Alabama, Georgia and Kentucky.  To coordinate this massive check cashing scheme, the defendants communicated using text messages and maintained detailed records.  For instance, Sharondra Johnson worked at the Walmart money center in Columbus, where she cashed checks for customers as part of her job.  Dameisha Mitchell recruited Sharondra Johnson to cash tax refund checks that were fraudulently issued in the names of other individuals.  Sharondra Johnson agreed to cash the checks and communicated with Dameisha and Tracy Mitchell via text messages.  In an attempt to conceal the crime from Walmart, the defendants had multiple individuals deliver the tax refund checks to Johnson for her to cash them.

At sentencing, the government offered victim impact statements from several individuals whose identities were stolen, and from companies and governmental agencies where the identity theft breaches occurred.  As one agency representative noted, the identity theft was not only devastating financially, but it also had a chilling effect on their ability to serve the residents of this state.  A mother of a young U.S. Army soldier who was an identity theft victim described the consequences of the fraud on her and her family, stating:

While [my son] was fighting for our country and all back home[,] I received a very disturbing phone call from [an] Agent [] from the IRS that my son[,] while at Ft. Benning training to defend our country[,] the land of the free[,] had his identity stolen and fraudulent tax returns were filed with his social security number.  This news was devastating to think that my [] 19-year-old son[,] who was defending the very freedom this country stands [for] [,] was wronged by one of those people [he] was willing to die for.  My whole family could not believe what was happening.  We now had to worry about this terrible act by one of our own.  As I tried my best to keep composed and handle all of the gruesome mounds of paperwork to get this straightened out with the IRS, [my son] was then denied his tax refund.  This created a financial hardship on [him].  We were too afraid to tell [him] while he was deployed because we did not want to worry him and we wanted him to focus only on getting home alive and not have to worry about such an atrocious act by someone who did not even know [him].

“No sentence is too strong for those who prey on our fighting men and women,” said U.S. Attorney Beck Jr.  “War is hell on the home front, too, and the family left behind holding things together must be strongly protected.”

Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of the IRS-Criminal Investigation and the U.S. Army-CID, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorneys Todd A. Brown, Jonathan S. Ross and Kevin P. Davidson of the Middle District of Alabama, who prosecuted the case.  Ciraolo and Beck Jr. also thanked the U.S. Attorney’s Office of the Middle District of Georgia for their assistance in the case.

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

A 38-year-old Bremerton, Washington man pleaded guilty today to a federal hate crime under the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act, for a January 2015 assault on three gay men, announced U.S. Attorney Annette L. Hayes, Western District of Washington and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division.  Troy Deacon Burns, will be sentenced by U.S. District Judge James L. Robart on November 10, 2015.

According to the plea agreement, just after midnight on January 25, 2015 three gay men were walking on East Pike Street toward Broadway in Seattle’s Capitol Hill neighborhood when Burns came up behind them and shouted homophobic slurs.  Burns was holding a knife, which he raised up over his head in a stabbing position.  Fearing for their safety the men started running.  As Burns caught up to one of the men he again used a slur as he attempted to stab him.  One of the other men was able to pull his friend away from Burns.  The third man located Seattle Police Officers who took Burns into custody.  While detained in the patrol car, Burns continued to yell homophobic slurs.  Burns was under the influence of drugs and alcohol at the time of the assault and says that he does not remember his actions.

The case was investigated by the Seattle Police Department and is being prosecuted by Assistant United States Attorney Bruce Miyake and Saeed Mody, Trial Attorney, Civil Rights Division, United States Department of Justice.  The King County Prosecuting Attorney’s Office is providing significant assistance with the case.

The Department of Justice announced today that Privatbank Reichmuth & Co., Banque Cantonale du Jura SA and Banca Intermobiliare di Investimenti e Gestioni (Suisse) SA have reached resolutions under the department’s Swiss Bank Program.

“The department is acquiring detailed information regarding the many ways in which U.S. taxpayers attempt to hide foreign assets, including through the use of sham trusts and insurance policies wrapped around foreign bank accounts to shroud the identity of U.S. beneficial owners,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division.  “The department is dismantling these structures, unwrapping these policies, and pursuing and prosecuting those involved in this fraudulent conduct.”

The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States.  Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts.  Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.

Under the program, banks are required to:

• Make a complete disclosure of their cross-border activities;

• Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;

• Cooperate in treaty requests for account information;

• Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;

• Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and

• Pay appropriate penalties.

Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.

According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.

Privatbank Reichmuth & Co. was founded in 1996 as an external asset management firm.  It is now a private bank headquartered in Lucerne, Switzerland.  Reichmuth knew that it was likely that certain U.S. customers who maintained accounts there were not complying with their U.S. income tax and reporting obligations. 

Reichmuth opened and maintained undeclared numbered or code name accounts for individual U.S. customers and held statements and other mail at its offices in Switzerland.  In the period since Aug. 1, 2008, Reichmuth opened at least 14 undeclared U.S.-related accounts that came from UBS or another bank under investigation by the department. 

In 2001, Reichmuth entered into a Qualified Intermediary (QI) Agreement with the Internal Revenue Service (IRS).  The QI Agreement took account of the fact that Reichmuth, like other Swiss banks, was prohibited by Swiss law from disclosing the identity of an accountholder.  In general, if an accountholder wanted to trade in U.S. securities and avoid mandatory U.S. tax withholding, the QI Agreement required Reichmuth to obtain the consent of the accountholder to disclose the client’s identity to the IRS.

Reichmuth’s position was that it could assist U.S. accountholders that it knew or had reason to believe were engaged in tax evasion so long as its accountholders were prohibited from trading in U.S.-based securities or the account  was nominally structured in the name of a non-U.S. based entity.  In the latter circumstance, U.S. accountholders, with the assistance of their advisors, would create an entity, such as a Liechtenstein or Panama foundation, and pay a fee to third parties to act as directors.  Those third parties, at the direction of the U.S. accountholder, would then open a bank account at Reichmuth in the name of the entity or transfer a pre-existing Swiss bank account from another Swiss bank.  Reichmuth made no effort to determine whether such an entity was valid for U.S. tax purposes.

Since Aug. 1, 2008, Reichmuth permitted U.S. customers to open and maintain at least 18 undeclared accounts held in the name of non-U.S. corporations, foundations, trusts or other legal entities.  Of these structures, seven were domiciled in Liechtenstein, five in Panama, five in St. Vincent and the Grenadines and one in the British Virgin Islands.  Even though Reichmuth was aware that U.S. persons were the beneficial owners of those accounts, Reichmuth obtained documents from the nominal accountholders that falsely declared they were not U.S. taxpayers. 

In connection with one structured account, Reichmuth agreed to open an “insurance wrapped” account for the U.S. beneficial owner, whereby the beneficial owner funded an insurance policy with assets held in an undeclared account at Reichmuth.  While the insurance-wrapped account was held in the name of a Panamanian structure and Reichmuth was not named as a party to the insurance contract, the assets held in the account were provided by the beneficial owner, held for his benefit and controlled by him.  Reichmuth was aware that the account consisted of assets supplied by the beneficial owner and retained for his benefit.  By accepting this account, Reichmuth knowingly enabled the beneficial owner in the evasion of his U.S. tax liabilities and concealment of his assets.

Since Aug. 1, 2008, Reichmuth maintained and serviced 103 U.S.-related accounts with an aggregate value of approximately $281 million, including both declared and undeclared accounts.  Reichmuth will pay a penalty of $2.592 million.

Banque Cantonale du Jura SA (BCJ) was formed in 1979 and is headquartered in Porrentruy, Switzerland.  BCJ opened and maintained undeclared accounts for certain U.S. client taxpayers knowing or having reason to know that by doing so, BCJ likely helped these U.S. taxpayers evade their U.S. tax obligations.  BCJ was aware, or should have been aware, that this conduct violated U.S. law.

BCJ provided traditional Swiss banking services that it knew could assist, and that did in fact assist, certain U.S. taxpayers to evade their U.S. tax obligations, file false federal tax returns with the IRS and otherwise hide accounts held at BCJ from the IRS.  Those services included opening accounts identified solely by pseudonyms, rather than by the names of the accountholders, and hold mail service.  In at least two instances, BCJ permitted U.S. persons to transfer funds from accounts held at banks under investigation by the department into pre-existing accounts at BCJ.  It also processed cash withdrawals for U.S. accountholders in sums below $10,000 on numerous occasions and, in at least two cases, withdrawing larger sums of cash when closing their accounts.

Due in part to the assistance of BCJ and its personnel, and with the knowledge that Swiss banking secrecy laws would prevent BCJ from disclosing their identities to the IRS, some of BCJ’s U.S. clients filed false and fraudulent U.S. Individual Income Tax Returns (IRS Forms 1040) which failed to report their respective interests in their undeclared accounts and the related income.  Some of BCJ’s U.S. clients also failed to file and otherwise report their undeclared accounts on Reports of Foreign Bank and Financial Accounts (FBARs).

As part of its cooperation throughout the Swiss Bank Program, BCJ has provided certain account information related to U.S. taxpayers that may assist the government in making requests under the 1996 Convention between the United States and the Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income for, among other things, the identities of U.S. accountholders.

Since Aug. 1, 2008, BCJ had 18 U.S. clients with a total of 118 U.S.-related accounts.  The aggregate amount of assets under management of all accounts associated with U.S. taxpayers at BCJ was approximately $10 million.  BCJ will pay a penalty of $970,000.           

Banca Intermobiliare di Investimenti e Gestioni (Suisse) SA (BIM Suisse) was established in 2001 and is located in Lugano, Switzerland.  BIM Suisse opened and maintained undeclared accounts for some U.S. taxpayers with the knowledge that by doing so, BIM Suisse was helping these U.S. taxpayers violate their legal duties.  BIM Suisse agreed to hold bank statements and other mail relating to the accounts at BIM Suisse, rather than send them to U.S. taxpayers located in the United States, to ensure that documents reflecting the existence of the accounts remained outside the United States and beyond the reach of U.S. tax authorities.

In January 2002, BIM Suisse entered into a QI Agreement with the IRS.  BIM Suisse subverted the terms of that agreement by failing to fully comply with both its withholding and reporting obligations to the IRS, thus enabling U.S. accountholders to avoid reporting their accounts to the U.S. authorities.

Between Aug. 1, 2008, and May 2015, BIM Suisse closed 13 of its 16 U.S.-related accounts.  As of July 2015, BIM Suisse maintains only three U.S.-related accounts, and none of those accounts remain undisclosed to the U.S. tax authorities.  Under the terms of the agreement signed today, BIM Suisse will not pay a penalty.

In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations.  While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.

Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts.  On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement.  With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.

“Today’s announcement emphasizes the strength and stamina of the Swiss Bank Program,” said Chief Richard Weber of IRS-Criminal Investigation (IRS-CI).  “Taxpayers with offshore accounts continue to come forth voluntarily to make things right with the IRS.  Time is running out for those offshore accountholders who have not yet have taken that step.  Through the Swiss Bank Program and the tremendous volume of information these banks are providing, the IRS will continue to identify and bring to justice those who would evade U.S. tax laws.” 

Acting Assistant Attorney General Ciraolo thanked the IRS, and in particular, IRS-CI and the IRS Large Business and International Division for their substantial assistance.  Ciraolo also thanked Michael N. Wilcove, Gregory S. Seador, Sean P. Beaty and Kimberle E. Dodd, who served as counsel on these matters, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.

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

More than 56 parties have agreed to restore key salmon habitat on the White River, which flows through King and Pierce Counties in Washington State, to resolve their liability for natural resource damages caused by hazardous substances released into the Thea Foss and Wheeler-Osgood Waterways in Tacoma’s Commencement Bay, the Justice Department, National Oceanic and Atmospheric Administration (NOAA) and Department of the Interior announced today. 

The habitat project will reopen 121 acres of historic floodplain for salmon, and reduces future flood risk to nearby homes and businesses. The project results from the collaborative efforts of settling parties and natural resource trustees: NOAA, the Department of the Interior, the Washington State Department of Ecology, the Puyallup Tribe of Indians, and the Muckleshoot Indian Tribe.

Under a settlement filed in federal district court in Tacoma, the parties will fund the Countyline Levee Setback Project, which will restore and provide off-channel rearing habitat for salmon and steelhead on the Lower White River in the vicinity of Pacific, Auburn and Sumner, Wash. The White River is one of the Puget Sounds’s most important watersheds for imperiled salmon and steelhead. The project will also help reduce the risk of flood damage for more than 200 nearby homes and businesses by allowing floodwaters more room to flow without damage.

The parties will monitor and adaptively manage the project under a 10-year plan that ensures at least 32.5 acres of the site are inundated by the river and thus accessible to fish. The parties also will pay more than $1 million towards the natural resource trustees’ assessment, oversight and the long-term stewardship costs maintaining the environmental value of the project over the next 100 years and beyond.

“This settlement is an important step toward repairing damaged natural resources from pollution in Commencement Bay, restoring critical salmon habitat in the area watershed, and reducing flooding for residents,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “Through this settlement, we are again demonstrating our commitment to protecting and restoring vital natural resources in the Northwest, which will result in lasting benefits to people and their environment.”

The settling parties consist of companies, individuals, and government entities who are past or current owners and/or operators of or successors to facilities that released hazardous substances to the waterways.   For many decades, the Thea Foss and Wheeler Osgood waterways received discharges of wastewater, chemical wastes, sludges, and miscellaneous industrial waste from a variety of industrial sources and sewers.  The contaminants discharged to the waterways include PCBs, PAHs, cadmium, lead and zinc.  Bis-2-ethyl hexylphthalate also was discovered to be widespread throughout the Thea Foss waterway at significant levels associated with biological effects.

This is the 20th natural resources settlement related to pollution in Commencement Bay, long the industrial heart of Tacoma. Through these settlements, more than 350 acres of salmon habitat will have been restored to offset the injuries to salmon and other fish from pollution of Commencement Bay.

“This is a great example of how providing sound habitat for our special salmon species provides benefits for people as well,” said General Counsel Lois Schiffer, NOAA.  “These approaches improve the resilience of Northwest Communities.”

The settlement resolves the natural resource trustees’ claims against the settling parties, which are contained in a complaint filed with the consent decree.  The complaint asserts claims for natural resource damages in Commencement Bay under the Superfund statute, the Clean Water Act, the Oil Pollution Act, and Washington’s Model Toxics Control Act.

The consent decree, lodged in the U.S. District Court for the Western District of Washington, is subject to a 30-day public comment period and approval by the federal court.  A copy of the consent decree is available on the Justice Department website at www.justice.gov/enrd/Consent_Decrees.html.

The Department of Justice filed a statement of interest today arguing that making it a crime for people who are homeless to sleep in public places, when there is insufficient shelter space in a city, unconstitutionally punishes them for being homeless.  The statement of interest was filed in federal district court in Idaho in Bell v. City of Boise et al., a case brought by homeless plaintiffs who were convicted under Boise ordinances that criminalize sleeping or camping in public. 

As stated by the Justice Department in its filing, “[i]t should be uncontroversial that punishing conduct that is a universal and unavoidable consequence of being human violates the Eighth Amendment. . .  Sleeping is a life-sustaining activity—i.e., it must occur at some time in some place.  If a person literally has nowhere else to go, then enforcement of the anti-camping ordinance against that person criminalizes her for being homeless.”

“Many homeless individuals are unable to secure shelter space because city shelters are over capacity or inaccessible to people with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “Criminally prosecuting those individuals for something as innocent as sleeping, when they have no safe, legal place to go, violates their constitutional rights.  Moreover, enforcing these ordinances is poor public policy.  Needlessly pushing homeless individuals into the criminal justice system does nothing to break the cycle of poverty or prevent homelessness in the future.  Instead, it imposes further burdens on scarce judicial and correctional resources, and it can have long-lasting and devastating effects on individuals’ lives.”

“No one wants people to sleep on sidewalks or in parks, particularly not our veterans, or young people, or people with mental illness,” said Director Lisa Foster of the Office for Access to Justice.  “But the answer is not to criminalize homelessness.  Instead, we need to work with our local government partners to provide the services people need, including legal services, to obtain permanent and stable housing.”

In this case, the plaintiffs allege that enforcement of the city of Boise ordinances prohibiting sleeping or camping in public outdoor places, on nights when there is insufficient shelter space in Boise to accommodate the homeless population, amounts to cruel and unusual punishment in violation of the Eighth Amendment.  In its filing, the United States does not take a position on the factual accuracy of the plaintiffs’ claims, but instead addresses the appropriate legal framework for analyzing their claims.  The statement of interest advocates for the application of the analysis set forth in Jones v. City of Los Angeles, a Ninth Circuit decision that was subsequently vacated pursuant to a settlement.  In Jones, the court considered whether the city of Los Angeles provided sufficient shelter space to accommodate the homeless population.  The court found that, on nights when individuals are unable to secure shelter space, enforcement of anti-camping ordinances violated their constitutional rights.  The parties in Bell v. City of Boise disagree about whether the Jones court’s analysis was correct, reflecting the longstanding disagreement among courts analyzing the constitutionality of anti-camping ordinances.  The statement of interest was filed to address this currently unsettled area of the law.

Bell v. City of Boise et al. was filed in the District of Idaho in 2009. 

A former construction boss from Las Vegas was sentenced today to 188 months in prison for his role in a $58,141,275 million scheme to fraudulently gain control of condominium homeowners’ associations (HOAs) in the Las Vegas area to secure construction and other contracts for himself and others.  Forty-two individuals have been convicted of crimes in connection with the scheme.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Office, Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.

Leon Benzer, 48, pleaded guilty on Jan. 23, 2015, to one count of conspiracy to commit mail and wire fraud, 14 counts of wire fraud, two counts of mail fraud and two counts of tax evasion.  In addition to imposing the prison term, U.S. District Judge James C. Mahan of the District of Nevada ordered Benzer to pay restitution in the amount of $13,294,100.

“Leon Benzer recruited and paid off puppets to serve on homeowners’ boards so that they would steer lucrative contracts to his company and cronies,” said Assistant Attorney General Caldwell.  “Far from enjoying their corrupt proceeds, however, Benzer and his co-conspirators will serve years behind prison bars.”

“This sentence serves as a reminder of the FBI's dedication and commitment to investigate, apprehend and prosecute criminals that prey on innocent and unsuspecting consumers,” said Special Agent in Charge Bucheit.

“When Leon Benzer named his company, Silver Lining Construction, he probably wasn’t aware of the IRS Criminal Investigation Division and the expertise of our special agents when it comes to putting pieces of a puzzle together to build a picture of fraudulent activity,” said Chief Weber.  “Benzer manipulated and bribed HOA boards in order to enrich himself and his co-conspirators at the expense of American taxpayers.  Not only did he try to hide the proceeds of his crimes in order to evade paying taxes, but he failed to pay his employment taxes.  Today, justice was served and the “silver lining” that Benzer anticipated was not realized thanks to the work of IRS-CI and our law enforcement partners.”

In connection with his guilty plea, Benzer admitted that, from approximately August 2003 through February 2009, he and an attorney developed a scheme to control the boards of directors of HOAs in the Las Vegas area.  According to plea documents, Benzer and his co-conspirators recruited straw buyers to purchase condominiums and secure positions on HOAs’ boards of directors.  Benzer admitted that he paid the board members to take actions favorable to his interests, including hiring his co-conspirator’s law firm to handle construction-related litigation and awarding remedial construction contracts to Benzer’s company, Silver Lining Construction. 

The case was investigated by the FBI, IRS-CI and the Las Vegas Metropolitan Police Department’s Criminal Intelligence Section.  The case was prosecuted by Deputy Chief Charles La Bella and Trial Attorneys Thomas B.W. Hall and Alison Anderson of the Criminal Division’s Fraud Section. 

The Department of Justice and the Department of Commerce’s National Institute of Standards and Technology (NIST) today announced six appointments to the National Commission on Forensic Science.

The commission, created in 2013, develops forward-looking policy recommendations for the Attorney General to enhance the practice and improve the reliability of forensic science.

The commission is co-chaired by Deputy Attorney General Sally Quillian Yates and Under Secretary of Commerce for Standards and Technology and NIST Director Dr. Willie E. May.  Deputy Assistant Administrator Nelson Santos of the Drug Enforcement Administration’s Office of Forensic Sciences and Special Assistant John M. Butler to the NIST Director for Forensic Science serve as vice-chairs.

“For nearly two years, the commission has been hard at work developing recommendations to strengthen the field of forensic science and the six new commissioners will bring valuable new insights to this process,” said Deputy Attorney General Yates.  “Their work is vital to ensuring the fairness of our criminal justice system.”

“Confidence in the collection, review and analysis of evidence by law enforcement and in the ability of the courts to fairly judge the strength of that evidence is the bedrock of any civil society,” said Under Secretary May.  “The new commissioners represent a diverse range of skills and training and we look forward to their contributions as we continue our efforts to ensure that the forensic evidence used in our criminal justice system is supported by rigorous science, measurements and analysis.”

The commission includes federal, state and local forensic science service providers; research scientists and academics; law enforcement officials; prosecutors, defense attorneys and judges; and other stakeholders from across the country.  This breadth of experience and expertise reflects the many different entities that contribute to forensic science practice in the United States and will ensure that these broad perspectives are represented on the commission and in its work.

The commission was established in 2013 and re-chartered for another two-year period in April 2015.  The new members announced today are replacing individuals whose tenures with the commission recently ended.  Because the re-charter includes a provision for digital evidence, an additional commissioner has been added to provide perspective in this important area of forensic science. 

The new commissioners are:

• Thomas D. Albright, Ph.D., Professor and Conrad T. Prebys Chair at The Salk Institute for Biological Studies in La Jolla, California;

• Arturo Casadevall, M.D., Ph.D., Bloomberg Distinguished Professor and Alfred and Jill Summer Professor and Chair of Molecular Microbiology and Immunology at the Johns Hopkins University Bloomberg School of Public Health in Baltimore;

• Gregory C. Champagne, Sheriff of St. Charles Parish, Louisiana;

• William N. Crane, Associate Professor and Director of the Champlain College Graduate Digital Forensic Program in Burlington, Vermont;

• Deirdre M. Daly, U.S. Attorney of the District of Connecticut; and

• Sunita Sah, M.D., Ph.D., Assistant Professor of Management and Organizations at the Cornell University Johnson Graduate School of Management in Ithaca, New York.

The commission’s next meeting will be held from August 10 to 11, 2015, at the House of Sweden, 2900 K Street, Washington, D.C.  More information about the commission can be found at http://www.justice.gov/ncfs.

The Department of Justice and Environmental Protection Agency (EPA) announced today that Arch Coal Inc., one of the nation’s largest coal companies, and 14 of its subsidiaries under the International Coal Group Inc. (ICG) have agreed to conduct comprehensive upgrades to their operations to ensure compliance with the Clean Water Act.  The settlement resolves hundreds of Clean Water Act violations related to illegal discharges of pollutants at the companies’ coal mines in Kentucky, Pennsylvania, Maryland, Virginia and West Virginia.  The states of West Virginia, Virginia and Pennsylvania are co-plaintiffs in today’s settlement.  The companies will also pay a $2 million civil penalty.

“This joint enforcement effort, with three states, has resulted in a settlement that will require changes that will benefit the health and environment of Appalachian communities for many years to come,” said Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division.  “Under the terms of the agreement, Arch Coal and its subsidiaries will pay a significant penalty, improve their pollution control systems and provide for independent monitoring and data tracking that will make it a better company and a better neighbor to these communities.”

“Businesses have an obligation to ensure that their operations don’t threaten the communities they serve, especially those that are overburdened by or more vulnerable to pollution,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “This settlement will prevent future environmental and public health risks by making sure these companies comply with federal and state clean water laws.”

“Today’s settlement is good news for water quality in the Appalachian region, especially people living in vulnerable and underserved communities,” said Regional Administrator Shawn M. Garvin for EPA.  “It represents an important next step forward by requiring these companies to take necessary actions to reduce pollution from their mining operations.”    

In addition to paying the penalty, under the proposed consent decree the companies must implement measures to ensure compliance and prevent future Clean Water Act violations, which will help protect communities overburdened by pollution, including:

• Developing and implementing a compliance management system.

• Periodic internal and third-party environmental compliance audits.

• Maintaining a data management system to track violations, water sampling data and compliance efforts.

• Providing training for environmental managers and others responsible for the consent decree.

Paying escalating stipulated penalties if violations continue to occur.

The government complaint filed concurrently with the settlement alleged that in the last six years, ICG operations have violated discharge limits for aluminum, manganese, iron and total suspended solids in their state-issued National Pollution Discharge Elimination System permits on more than 1,200 occasions, resulting in over 8,900 days of violations.  Of those violations, 700 have been previously resolved by state enforcement actions in Kentucky and West Virginia.

EPA discovered the violations through inspections of ICG facilities and projects, reviewing various information provided by the companies and coordinating with the affected state governments.

The proposed consent decree, lodged in the U.S. District Court for the Southern District of West Virginia, is subject to a 30-day public comment period and approval by the federal court.

The proposed settlement will be available online at: http://www.justice.gov/enrd/consent-decrees

More information on Clean Water Act Enforcement: http://www.epa.gov/compliance/civil/cwa/index.html

A Department of Justice official released the following background statement at the conclusion of Attorney General Loretta E. Lynch’s meeting with Attorneys General from all Central American nations:

“On Wednesday, Attorney General Lynch convened the first ever ‘Dialogue’ with the Attorneys General of all seven Central American nations: Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.  The goal of the Dialogue is to strengthen law enforcement cooperation against the threats common to all our countries.  The Attorneys General discussed enhanced coordination against transnational cartels, gangs and terrorists; the Dialogue also focused on the rapidly rising issue of cybercrime and the persistent problem of human trafficking and smuggling.  Attorney General Lynch and her counterparts agreed that this meeting was only a first step and that these vital discussions would continue, so as to enhance citizen security both in Central America and the U.S.”

DELEGATION

Belize: Wilfred Peter Elrington, Attorney General and Minister of Foreign Affairs

Costa Rica: Jorge Chavarria Guzman, Attorney General

El Salvador: Luis Antonio Martinez Gonzalez, Attorney General

Guatemala: Thelma Aldana Hernandez, Attorney General

Honduras: Oscar Fernando Chinchilla Banegas, Attorney General

Nicaragua: Ana Julia Guido Ochoa, Attorney General

Panama: Kenia Porcell De Alvarado, Attorney General

James Jariv, 64, of Las Vegas, Nevada, was sentenced in federal court in Las Vegas today to ten years in prison for his role in illegal schemes to generate fraudulent biodiesel credits and to export biodiesel without providing biodiesel credits to the United States.  Jariv was also ordered to make restitution in the amount of $6,345,830.91 and to forfeit between $4 to $6 million in cash and other assets. 

Jariv was the second defendant to be sentenced for the scheme.  Nathan Stoliar, 64, of Australia, was sentenced to two years in prison in April for his role in the conspiracy and ordered to pay more than $1.4 million in restitution and to forfeit of $4 million in cash.  In addition, in court papers unsealed last week, Alex Jariv, 28, also of Las Vegas, pleaded guilty in the scheme and his sentencing was scheduled for Aug. 18, 2015.

James Jariv and Stoliar both pleaded guilty to one count of conspiracy, one count of conspiracy to engage in money laundering, two counts of wire fraud and one count of making false statements under the Clean Air Act.  Alex Jariv pleaded guilty to one count of conspiracy to commit wire fraud, make false statements and launder monetary instruments. 

“This was an egregious scheme to defraud fuel suppliers, the United States, and a program designed to strengthen our nation’s petroleum independence and improve our air quality” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “We will not tolerate such fraud and will vigorously prosecute those who put their own enrichment above our nation’s interests.”

“Mr. Jariv and his co-defendant defrauded the United States government of millions of dollars through this biodiesel fraud scheme,” said U.S. Attorney Daniel Bogden for the District of Nevada.  “They used a Las Vegas company and Las Vegas bank accounts to facilitate the scheme.  Fortunately, in addition to convicting both defendants, we were able to seize and forfeit millions of dollars from numerous bank accounts, as well as real property in Nevada and California, jewelry and other assets.”

“EPA's criminal enforcement program goes after the most egregious offenders,” said Assistant Administrator Cynthia Giles for Enforcement and Compliance Assurance at EPA.  “For his role in undermining the Renewable Fuel Standard, developed to reduce the nation’s impact on climate change and lessen our dependence on foreign oil, Mr. Jariv is going to prison.   Let today’s sentence send a clear message to others who engage in biofuel fraud that EPA takes seriously its responsibility to bring violators of this important program to justice.”

The Energy Independence and Security Act of 2007 created a number of federally-funded programs that provided monetary incentives for the production and use of renewable fuels such as biodiesel in the United States.  Biodiesel producers and importers can generate and attach credits known as renewable identification numbers (RINs) to the gallons of biodiesel they produce or import.  Because certain companies (such as companies that sell transportation fuel in the United States) need RINs to comply with regulatory obligations, RINs have significant market value.  They are routinely bought and sold in the marketplace.  In addition, to ensure that RINs are generated for renewable fuel used only in the United States and in order to create an incentive for biodiesel in the United States to be used here, anyone who exports biodiesel is required to obtain these valuable RINs for all exported gallons and provide the RINs to EPA.   

Beginning around September of 2009, James Jariv and Stoliar operated and controlled a company -- City Farm Biofuel in Vancouver, British Columbia, Canada -- that represented itself as a producer of biodiesel from “feedstocks” such as animal fat and vegetable oils.  James Jariv and Stoliar also formed a company called Canada Feedstock Supply – that represented itself as City Farm’s supplier of feedstocks necessary to produce biodiesel.  James Jariv operated and controlled a company based in Las Vegas called Global E Marketing (GEM). 

Alex Jariv worked for and on behalf of these companies.  Using these three and other closely-held companies, the three defendants claimed to produce biodiesel at the City Farm facility and to import and sell biodiesel to GEM and then generated and sold RINs based upon this claimed production, sale and importation.  In reality, no biodiesel produced at City Farm was ever imported and sold to GEM as claimed.  The Jarivs and Stoliar used GEM to claim to blend the biodiesel with petroleum diesel, allowing them to sell the RINs separately from any actual biodiesel.  Using this scheme, the three men falsely claimed to import, purchase and blend more than 4.2 million gallons of biodiesel.  They then sold the RINs, and fraudulently generated more than $7 million. 

James Jariv and Stoliar also purchased and resold RIN-less B-99 biodiesel as B-100 biodiesel, which allowed them to charge substantially more for this product than if it has been accurately labeled.  They exported significant amounts of the RIN-less B-99 they bought in the United States to Canada and Australia.  They then sold the biodiesel in those countries and conspired to not acquire and provide RINs to the United States for these exports as they were required to do by law.  In doing so, James Jariv and Stoliar failed to give to the United States RINs worth in excess of $34 million, keeping this money for themselves instead.

Finally, James and Alex Jariv and Stoliar conspired to launder the proceeds of their crimes, utilizing foreign banking institutions and complex financial transactions to promote their illegal schemes and distribute the proceeds of their crimes.  Accounts were utilized in Canada, Nevada and Australia and transactions between the defendants’ closely-held companies were described as other legitimate transactions involving biodiesel, when in reality they were not.

The investigation into the Jarivs’ and Stoliar’s activities was the result of collaborative work by the EPA’s Criminal Investigation Division and the FBI, with assistance from the United States Secret Service, the Internal Revenue Service-Criminal Investigations, the Department of Homeland Security and the Royal Canadian Mounted Police. 

The case was prosecuted by Wayne D. Hettenbach of the Environmental Crimes Section, U.S. Department of Justice, Assistant U.S. Attorneys Crane M. Pomerantz and Daniel D. Hollingsworth of the U.S. Attorney’s Office in Nevada and Assistant Deputy Chief Darrin L. McCullough of the Justice Department’s Criminal Division, Asset Forfeiture and Money Laundering Section, with the assistance of the Justice Department’s Office of International Affairs and the U.S. Attorney’s Office for the Southern District of Texas.

Three members of a 2012 presidential campaign committee were charged with offenses relating to the concealment of payments made to a former Iowa State Senator.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge David J. LeValley of the FBI’s Washington, D.C., Field Office’s Criminal Division made the announcement. 

“Federal campaign finance laws are intended to ensure the integrity and transparency of the federal election process,” said Assistant Attorney General Caldwell.  “When political operatives make under-the-table payments to buy an elected official’s political support, it undermines public confidence in our entire political system.”

“Violating campaign finance laws by concealing payments to an elected official undermines our electoral system and deceives the public,” said Special Agent in Charge LeValley.  “The FBI will aggressively investigate those who corrupt the integrity of our democratic process.”

Jesse R. Benton, 37, of Louisville, Kentucky; John M. Tate, 53, of Warrenton, Virginia; and Dimitrios N. Kesari, 49, of Leesburg, Virginia, are charged by indictment with conspiracy, causing false records to obstruct a contemplated investigation, causing the submission of false campaign expenditure reports to the Federal Election Commission (FEC) and engaging in a scheme to make false statements to the FEC.  Benton is additionally charged with making false statements to the FBI, and Kesari is also charged with obstruction of justice. 

Kesari appeared in the U.S. District Court for the Southern District of Iowa today.  Benton and Tate are scheduled to appear on Sept. 3, 2015. 

The defendants were members of a campaign for a candidate in the 2012 presidential election.  According to allegations in the indictment, former Iowa State Senator Kent Sorenson initially supported one candidate in the 2012 presidential election, but between October and December 2011, secretly negotiated with the defendants to switch his support to their candidate in exchange for money.  On Dec. 28, 2011, at a political event in Des Moines, Iowa, Sorenson publicly announced his switch of support.

The payments to Sorenson were allegedly made in monthly installments of approximately $8,000 each and ultimately amounted to over $70,000.  The indictment alleges that the defendants concealed the payments by causing them to be recorded – both in campaign accounting records and in FEC filings – as campaign-related audio-visual expenditures, and by causing them to be transmitted to a film production company and then to a second company that was controlled by Sorenson.  According to the indictment, the conspirators concealed their campaign’s payments to Sorenson from their candidate and also from the FEC, the FBI and the public.   

The indictment further alleges that, in response to criticism of Sorenson’s change of support from one candidate to the other, the conspirators arranged for Sorenson to issue public statements denying allegations that he was offered money for his endorsement and noting that the campaign committee’s FEC filings would show that it made no payments to Sorenson. 

On Aug. 27, 2014, Sorenson pleaded guilty to causing a campaign committee to falsely report its expenditures to the FEC and to obstruction of justice.  He has not yet been sentenced.

The charges and allegations contained in an indictment are merely accusations.  The defendants are presumed innocent until and unless proven guilty.

The case is being investigated by the FBI’s Washington, D.C., Field Office, with assistance from the Omaha, Nebraska, Field Office and the Des Moines Resident Agency.  The case is being prosecuted by Director Richard C. Pilger of the Criminal Division’s Public Integrity Section’s Election Crimes Branch and Trial Attorney Jonathan I. Kravis of the Public Integrity Section.

Benton et al Indictment

The U.S. Department of Justice’s Office on Violence Against Women (OVW) today announced the launch of The Center for Changing Our Campus Culture (www.changingourcampus.org), a new comprehensive online clearinghouse on sexual assault, domestic violence, dating violence, and stalking on campus.  This new website provides the latest information, materials and resources for campus administrators, faculty and staff, as well as campus and community law enforcement, victim service providers, students, parents and other key stakeholders to use to improve campus safety.

“The launch of this website reaffirms the department’s commitment to providing campuses with tools to develop and implement effective responses to sexual and dating violence on campus,” said Deputy Attorney General Sally Quillian Yates.  “The department commends campus leaders for championing these issues and for their dedication to bringing about lasting changes on their campuses.”

Since the release of Not Alone: The First Report of the White House Task Force to Protect Students from Sexual Assault on Jan. 22, 2014, the Justice Department, in partnership with the Department of Education, has strengthened federal enforcement efforts and provided institutions of higher education with tools to help combat sexual assault and domestic violence on campus.

“Colleges and universities across the country are looking for resources to improve their response to sexual assault, domestic violence, dating violence and stalking on campus," said Principal Deputy Director Bea Hanson of the Office on Violence Against Women.  "Visitors to the website will have access to cutting-edge tools, including sample policies, protocols, and best practices, that can be adapted and replicated on colleges and universities across the county."

Content for The Center for Changing Our Campus Culture website was provided by OVW and its Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence and Stalking on Campus Program technical assistance providers, in partnership with the U.S. Department of Education, the U.S. Department of Health and Human Services and the Centers for Disease Control and Prevention.

The center will continue to work collaboratively to update and maintain the website and will seek guidance and input from campus-based experts, campus communities, and grassroots groups committed to ending sexual assault, domestic violence, dating violence and stalking.

The owner of a heating, ventilation and air conditioning (HVAC) installation and repair company from West Bridgewater, Massachusetts, was arraigned today in U.S. District Court in Boston on an indictment filed on July 23 charging him with one count of tax evasion, five counts of filing false federal income tax returns and four counts of failing to file tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. 

According to the allegations in the indictment, Keith A. Eaton failed to file tax returns for tax years 1998 through 2003.  In 2004, the Internal Revenue Service (IRS) assessed him with approximately $280,000 in taxes, interest and penalties, which he failed to pay.  Eaton also filed delinquent false tax returns for tax years 2000 through 2008, on which he failed to report the income that he had earned working for another HVAC company located in Brockton, Massachusetts.  Eaton allegedly attached false IRS Forms 1099, Miscellaneous Income, to some of the false tax returns that he submitted.  The Forms 1099 purportedly reflected the compensation he had received from companies for whom he had performed work, but Eaton altered the forms to falsely show that he had not received compensation.

The indictment further alleges that in 2008, Eaton began operating his own HVAC company, Eaton Mechanical LLC.  In order to obstruct the IRS from collecting taxes that Eaton owed, he caused the HVAC company to be registered in the name of a nominee and caused the nominee to be listed as the signatory on the business bank account.  To further conceal his financial transactions from the IRS, Eaton used cash to pay his personal expenses.   

If convicted, Eaton faces a statutory maximum sentence of five years in prison for tax evasion, a statutory maximum sentence of three years in prison for each count of filing a false return and a statutory maximum sentence of one year in prison for failing to file a return.  He also faces substantial monetary penalties, including fines and restitution to the IRS.  His arraignment is scheduled for Aug. 28 at 10:00 a.m. in Boston.

Acting Assistant Attorney General Ciraolo commended the special agents of the IRS–Criminal Investigation, who investigated the case, and Trial Attorneys Kenneth C. Vert and Brittney N. Campbell of the Tax Division, who are prosecuting the case.  Ciraolo also thanked the U.S. Attorney’s Office of the District of Massachusetts for their substantial assistance.

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

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

The Justice Department announced today that it has reached an agreement with the city of Eugene, Oregon, to resolve allegations that the city violated the anti-discrimination provision of the Immigration and Nationality Act (INA).  The city of Eugene is the second largest city in the state of Oregon.

The Justice Department’s investigation found that the city of Eugene improperly restricted law enforcement positions to U.S. citizens at the time of hire, even though no law, regulation, executive order or government contract authorized such a restriction.  The investigation revealed that the city of Eugene asked police officer applicants about their citizenship status with the intent to exclude any applicant who was not a U.S. citizen at the time of hire.  The INA’s anti-discrimination provision prohibits employers from limiting jobs to U.S. citizens except where the employer is required to do so by law, regulation, executive order, or government contract.

Under the settlement agreement, the city of Eugene must pay a civil penalty, train its employees about the anti-discrimination provision of the INA and be subject to monitoring by the Justice Department for a period of three years. 

“The Civil Rights Division is committed to ensuring that individuals who are authorized to work in the United States do not face unlawful discriminatory barriers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “The Civil Rights Division commends the city of Eugene for cooperating with the Justice Department and taking swift remedial action 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.  Among other things, the statute prohibits discrimination in hiring, firing, or recruitment or referral for a fee based on an individual’s citizenship, immigration status, or national origin.  The case was handled by OSC Trial Attorney Pablo A. Godoy.  

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 at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.   

Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact the worker hotline above for assistance.

The Justice Department has reached a comprehensive settlement agreement with the county of Los Angeles and the Los Angeles County Sheriff to protect prisoners from serious suicide risks and excessive force in the Los Angeles County Jails, announced Deputy Assistant Attorney General Mark J. Kappelhoff of the Civil Rights Division and U.S. Attorney Eileen M. Decker of the Central District of California.  The settlement agreement was filed simultaneously with a complaint this morning alleging a pattern or practice of inadequate mental health care and excessive force at the jails in violation of prisoners’ federal constitutional rights.  The Justice Department, together with the county and the Sheriff, has requested that the District Court enter the settlement agreement as an order to bring court oversight to the reforms, to ensure that the reforms are implemented fully and transparently, and to strengthen public confidence in the jails.

Today’s settlement resolves claims stemming from the Justice Department’s long-standing civil investigation into mental health care at the jails, which found a pattern of constitutionally deficient mental health care for prisoners, including inadequate suicide prevention practices.  In addition, the settlement agreement includes remedial measures to address a separate civil investigation into use of force by jails staff.  The Justice Department’s investigations involved an in-depth review of thousands of pages of documents and other records, on-site visits and interviews with numerous jails staff members, prisoners and others.  The Justice Department was assisted by subject matter experts in the fields of mental health care, suicide prevention and correctional practices.  The county and the Sheriff cooperated with the civil investigations and have begun to implement many of the negotiated reforms in the settlement agreement, which was negotiated by attorneys in the Justice Department’s Civil Rights Division and the U. S. Attorney’s Office for the Central District of California.

“This historic settlement represents a renewed commitment by the county and Sheriff McDonnell to provide constitutionally adequate care for prisoners with serious mental illness,” said Deputy Assistant Attorney General Kappelhoff.  “The agreement also puts in place a structure that will help turn around a persistent culture in which the use of excessive force on prisoners was sometimes tolerated.  I want to thank the sheriff and county for their cooperation and leadership.  Their efforts are critical to the long-term success of this agreement.”   

“The Justice Department will continue to vigorously protect the federal civil rights of all individuals, including those who are imprisoned and who must depend on jail officials for their most basic needs and safety,” said U.S. Attorney Decker.  “The settlement agreement avoids protracted litigation and provides a blue print for durable reform that will foster continued collaboration among sheriff deputies, healthcare professionals and other stakeholders.  We commend the county and Sheriff McDonnell for their cooperation and for their commitment to make this historic settlement agreement possible.”

Under the settlement agreement filed today, the county and the Sheriff have agreed to implement comprehensive reforms to ensure constitutional conditions in the jails and restore public trust.  The settlement agreement will be court-enforceable once approved by the District Court and will be overseen by an independent monitor and a team of mental health and corrections experts.  The settlement agreement is designed to prevent and respond more effectively to suicides and self-inflicted injuries through measures that include:

• additional steps to recognize, assess and treat prisoners with mental illness, from intake to discharge;

• significant new training on crisis intervention and interacting with prisoners with mental illness for new and existing custody staff;

• improved documentation in prisoners’ medical and mental health records to ensure continuity of care;

• improved communication between custody and mental health staff and increased supervision of mentally ill and suicidal prisoners;

• steps to mitigate suicide risks within the jails;

• increased access to out-of-cell time for mentally ill prisoners; and

• improved investigation and critical self-analysis of suicides, suicide attempts and other critical events.

With respect to use of force, the settlement agreement expands critical reforms agreed to by the county and the Sheriff in Rosas v. McDonnell to cover all facilities within the jails system.  These reforms include:

• enhanced leadership and executive staff engagement;

• significant revisions to use-of-force policies, which should significantly reduce the use of excessive force, with added protections for use of force against prisoners with mental illness;

• enhanced training for custody and mental health staff;

• enhanced data collection and analysis;

• enhanced accountability measures, including use-of-force reporting, use-of-force reviews and discipline; and

• enhanced grievance procedures.

The Justice Department’s investigation was originally opened in 1996, under the Civil Rights of Institutionalized Persons Act (CRIPA).  The Justice Department found constitutional deficiencies in mental health care, suicide prevention and the use of excessive force against prisoners with mental illness.  In 2002, the Justice Department entered into a memorandum of agreement with the county and the Sheriff to address these concerns.  Despite considerable progress over the years of monitoring the memorandum of agreement, the Justice Department concluded in 2014 that the jails were failing to provide adequate mental health care, including suicide prevention, and that conditions under which prisoners with mental illness were housed exacerbated the risk of suicide.

In addition, in 2013, the Justice Department initiated a separate civil investigation into allegations of use of excessive force by jails staff under both CRIPA and the Violent Crime Control and Law Enforcement Act of 1994.  While the use of force investigation was ongoing, the county and the Sheriff settled, the Rosas v. McDonnell class-action lawsuit, which alleged excessive force by jails deputies in three downtown facilities.  The settlement agreement incorporates all of the reforms in Rosas and extends them to all jails facilities to cover prisoners throughout the jails system. 

The civil investigations were conducted by attorneys and staff from the Civil Rights Division’s Special Litigation Section and the Civil Division of the U. S. Attorney’s Office for the Central District of California. 

The Department of Justice announced today that the U.S. District Court for the District of Puerto Rico has approved the department’s consent decree with the commonwealth of Puerto Rico and the Puerto Rico Police Department (PRPD) that resolved allegations that the PRPD discriminated against Yolanda Carrasquillo on the basis of race, color and religion in violation of Title VII of the Civil Rights Act of 1964. 

The department’s complaint in this action, filed on July 22, 2013, alleged that Carrasquillo, a sworn police officer, was subjected to a hostile work environment because of the discriminatory actions of a civilian co-worker.  This co-worker regularly directed racial and other offensive slurs at Carrasquillo and other black or dark-skinned employees, and disparaged Carrasquillo’s Christian faith.  According to the complaint, PRPD failed to take any meaningful steps to stop the harassment or discipline the harasser.  The department’s complaint was based on a charge filed by Carrasquillo with the Equal Employment Opportunity Commission, which investigated the matter, determined that there was reasonable cause to believe that discrimination had occurred and referred the matter to the department.

This consent decree resolves the individual charge of employment discrimination against the PRPD.  Under the terms of the decree, the PRPD will provide Carrasquillo with $60,000 in monetary relief and credit her with 30 days of annual leave.

The consent decree also requires the PRPD to revise its anti-discrimination employment policies and train its employees within the framework of its existing July 17, 2013, comprehensive systemic reform agreement with the department.

“This settlement agreement is yet another step towards the fulfillment of the necessary reforms in the Puerto Rico Police Department that will ensure that the PRPD will have appropriate procedures in place to protect the rights of its employees, ” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “Through this consent decree, the Department of Justice continues to protect the rights of all workers to a workplace free from the fear of harassment because of their race, color or religion.”

The continued enforcement of Title VII is a priority of the Civil Rights Division.  Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. 

WASHINGTON – El Departamento de Justicia anunció hoy que el Tribunal Federal de Distrito para el Distrito de Puerto Rico ha aprobado el decreto por consentimiento del departamento con el Estado Libre Asociado de Puerto Rico y el Departamento de Policía de Puerto Rico [Puerto Rico Police Department (PRPD)] que resolvió alegatos de que el PRPD discriminó a Yolanda Carrasquillo debido a raza, color y religión, en violación del Título VII de la Ley de Derechos Civiles de 1964.

La demanda del departamento, entablada el 22 de julio de 2013, alegó que Carrasquillo, una agente de la policía juramentada, fue sometida a un ambiente de trabajo hostil debido a las acciones discriminatorias de un compañero de trabajo civil.   Dicho compañero de trabajo se dirigía habitualmente a Carrasquillo y otros empleados de raza negra o con piel oscura, profiriendo insultos raciales y ofensivos, y menospreció la fe cristiana de Carrasquillo. De acuerdo con la demanda, el PRPD dejó de tomar medidas para poner fin al acoso o dejó de tomar medidas disciplinarias contra el acosador. La demanda del departamento se basó en una queja presentada por Carrasquillo a la Comisión de Igualdad de Oportunidades de Empleo, que investigó el caso, y habiendo determinado que existía causa razonable para creer que había ocurrido discriminación, remitió el caso al departamento.

Este decreto por consentimiento resuelve el cargo individual de discriminación en el empleo entablado contra el PRPD.  Bajo los términos del decreto, el PRPD pagará a Carrasquillo $60.000 en compensación monetaria y le otorgará 30 días de licencia anual.

El decreto por consentimiento también exige que el PRPD realice una revisión de sus políticas contra la discriminación en el empleo y capacite a sus empleados de acuerdo con su existente acuerdo integral de reforma sistémica del 17 de Julio de 2013 con el departamento.

“Este acuerdo conciliatorio es un paso más hacia la realización de las reformas necesarias en el Departamento de Policía de Puerto Rico que garantizarán que el PRPD implemente procedimientos adecuados para proteger los derechos de sus empleados”, dijo la Procuradora General Adjunta Suplente Principal Vanita Gupta, quien encabeza la División de Derechos Civiles.  “Por medio de este decreto por consentimiento, el Departamento de Justicia sigue protegiendo los derechos de todos los trabajadores de trabajar libres de temor al acoso debido a su raza, color o religión”.

Es prioridad de la División de Derechos Civiles hacer valer el Título VII en forma continua. Existe disponible información adicional sobre la División de Derechos Civiles en su sitio en internet en www.justice.gov/crt . 

WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con la Ciudad de Eugene, Oregón, que resuelve las acusaciones de que la Ciudad había violado la disposición antidiscriminatoria de la Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).  La Ciudad de Eugene es la segunda ciudad más grande en el estado de Oregón.

La investigación del Departamento de Justicia encontró que la Ciudad de Eugene había restringido los puestos disponibles en los cuerpos de orden público a individuos que en el momento de la contratación fuesen ciudadanos estadounidenses, aunque no existe ninguna ley, reglamento, orden ejecutiva o contrato de gobierno que autorice ese tipo de restricción. La investigación demostró que la Ciudad de Eugene preguntó a postulantes al cargo de agentes de policía acerca de su estatus de ciudadanía con la intención de excluir a postulantes que no fuesen ciudadanos de los Estados Unidos en el momento de la contratación. La disposición antidiscriminatoria de la INA prohíbe que los empleadores restrinjan los cargos a ciudadanos estadounidenses salvo en los casos en los que el empleador está obligado a hacerlo por ley o conforme a un reglamento, una orden ejecutiva o un contrato gubernamental.

Según el acuerdo de resolución, la Ciudad de Eugene pagará una multa civil, capacitará a sus empleados acerca de la disposición antidiscriminatoria de la INA y será sujeto al monitoreo por parte del Departamento de Justicia durante un período de tres años.

“La División de Derechos Civiles se compromete a asegurar que los individuos que cuenten con autorización para trabajar en los Estados Unidos no se enfrentan con barreras discriminatorias ilegales”, declaró la Subprocuradora General Interina, Vanita Gupta, de la División de Derechos Civiles. “La División de Derechos Civiles desea felicitar a la Ciudad de Eugene por su cooperación con el Departamento de Justicia y las medidas correctivas oportunas que tomó para abordar la situación”.

La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC, por sus siglas en inglés) tiene la responsabilidad de hacer cumplir con la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por motivo de la ciudadanía o el estatus migratorio de un individuo, o bien por su origen nacional, en la contratación, el despido o el reclutamiento o la recomendación a cambio de un honorario. El caso lo gestionó el Abogado Litigante de la OSC, Pablo A. Godoy.

Para más información sobre las protecciones contra la discriminación en el empleo bajo las leyes migratorias, llame a la línea directa de la OSC para trabajadores al 1-800-255-7688 (1‑800-237-2515, TTY para las 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 las personas con discapacidades auditivas); matricúlese para una conferencia en línea gratuita en www.justice.gov/crt/about/osc/webinars.php; mande un correo electrónico a [email protected] o visite la página web de la OSC en www.justice.gov/crt/about/osc.  

Los postulantes o empleados que creen haber sido víctimas de discriminación por motivo de su ciudadanía, estatus migratorio u origen nacional en la contratación, el despido o el reclutamiento o referencia por comisión deberán llamar a la línea directa para trabajadores mencionada arriba y serán atendidos.

Defendant Screamed Homophobic Slurs while Chasing Gay Men with a Knife

A 38-year-old Bremerton, Washington, man was charged today with a federal hate crime under the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act, for a January 2015 assault on three gay men, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney Annette L. Hayes of the Western District of Washington.  Troy Deacon Burns was transferred from state custody today for his initial appearance on the federal charge in U.S. District Court in Seattle at 2:00 p.m. PDT.

According to the criminal complaint, just after midnight on Jan. 25, 2015, three gay men were walking on East Pike Street toward Broadway in Seattle’s Capitol Hill neighborhood when Burns came up behind them and shouted homophobic slurs.  Burns was holding a knife, which he raised up over his head in a stabbing position.  Fearing for their safety the men started running.  As Burns caught up to one of the men he again used a slur as he attempted to stab him.  One of the other men was able to pull his friend away from Burns.  The third man located Seattle Police Officers who took Burns into custody.  While detained in the patrol car, Burns continued to yell homophobic slurs.

The charges contained in the complaint are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

Commission of a hate crime is punishable by up to ten years in prison and a $250,000 fine.

The case was investigated by the Seattle Police Department and is being prosecuted by Trial Attorney Saeed Mody of the Civil Rights Division and Assistant U. S. Attorney Bruce Miyake of the Western District of Washington.  The King County Prosecuting Attorney’s Office is providing significant assistance with the case.

Attorney General Loretta E. Lynch released a statement today after the 5th Circuit Court of Appeals upheld the ruling that Texas’s voter ID law violates Section 2 of the Voting Rights Act:

“We are pleased that the court of appeals agreed unanimously with the district court that the Texas statute violates Section 2 of the Voting Rights Act and we are studying the opinion in light of the future proceedings the court of appeals has ordered.”

The United States today filed a motion to intervene and a complaint in intervention on its own behalf and as trustee for the Tulalip Tribes in their lawsuit against the state of Washington and Snohomish County over the imposition of taxes on non-Indian businesses operating on lands held in trust for Tulalip on the Tulalip Reservation.  The intervention seeks to protect the authority of tribes under the U.S. Constitution and federal law to develop reservation resources and fund governmental services without unlawful interference from state and local taxation. 

The Tulalip Tribes occupy a 22,000-acre reservation in Snohomish County, 35 miles north of Seattle.  For economic-development purposes, Tulalip chartered its own municipal corporation, the Consolidated Borough of Quil Ceda Village, on trust land within the Reservation adjacent to Interstate 5.  

“The United States takes seriously the federal role in protecting tribal self-government, which has its foundation in federal statutes, treaties, and regulations,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “To this end, we are committed to eliminating barriers, such as these, which hinder tribes from developing healthy economies and providing necessary governmental services on the reservation.”

With tens of millions of dollars in financial support and planning assistance from the federal government, Tulalip designed and built the infrastructure necessary to support a major retail, tourism and commercial center at Quil Ceda Village, including a tribal casino, resort and shopping center.  The Tribe and federal government manage, maintain and provide all significant governmental services to the tenants and visitors at Quil Ceda, including police and fire protection, emergency medical and 911 services, among many others.

According to the complaint in intervention filed today in Seattle, the state of Washington and Snohomish County did not contribute in any significant respect to the development of Quil Ceda Village.  Moreover, they provide no significant governmental services at the Village and they play no role in the Village’s ongoing operations.  The state and county, however, impose over $40 million in annual property, business and occupation and sales taxes on the on-reservation activities at Quil Ceda.  Even though Tulalip has its own applicable tribal tax laws, state and county taxation in effect precludes Tulalip from imposing its own taxes and deprives it of the tax base needed to fund important governmental services.

The United States has substantial interests in this action by virtue of the Indian Commerce Clause of the U.S. Constitution as well as federal statutes and regulations designed to foster tribal self-determination and economic independence.  The United States also has substantial interests in the interpretation of its statutes and regulations and in the principles governing state and local taxation and regulation of activities on Indian reservations.

On June 12, 2015, the Tribe and Village filed suit against the Director of the Washington State Department of Revenue, as well as against Snohomish County and County officials, seeking declaratory and injunctive relief against the administration and enforcement of state and County sales and use, B&O and property taxes in connection with the economic activities at Quil Ceda Village.  The legal claims in this case, however, squarely implicate federal interests.

Seven members of the Vice Lords were charged in an indictment unsealed today with various offenses based on their roles in a gang-related shooting.  The charges are the result of the collaborative efforts of law enforcement and the community to reduce homicide and other violent crime under the Detroit One program, which has led to the arrests and convictions of Vice Lords leaders during this past year. 

The announcement was made by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department. 

The seven Vice Lord members charged with crimes stemming from this incident are:     

• Antonio Clark, aka Cheeto, 25, of Detroit, is charged with attempted murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, use and carry of firearms during and in relation to a crime of violence and being a felon in possession of firearms;

• Aramis Wilson, aka Ace, 24, of Detroit, is charged with attempted murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, use and carry of firearms during and in relation to a crime of violence and being a felon in possession of firearms;

• Tyrone Price, aka Price, 26, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence;

• Jonathan Kinchen, aka Deago, 22, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence;

• Kojuan Lee, aka Juan, 19, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence;

• Kirshean Nelson, 18, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence; and

• Dion Robinson, aka Doggy, 37, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence.

Robinson, Clark, Price and Kinchen are in custody; arrest warrants have been issued for the other three defendants. 

According to the indictment, the Vice Lords is a national gang engaged in a variety of crimes, including murder, robbery, narcotics trafficking and witness intimidation.  The indictment alleges that the Vice Lords’ leaders are located in both Chicago and Detroit, and that the gang is broken down into various “sets,” “decks,” or “branches,” including the Detroit-based Insane Vice Lords, Imperial Insane Vice Lords, Traveling Vice Lords, Conservative Vice Lords, Mafia Insane Vice Lords and Insane Goon Gang.  The indictment further alleges that members who seek to leave or withdraw from the gang oftentimes endure a physical beating, known as a “beat out,” by multiple Vice Lord members, or are targeted for killing, known as a “green light.” 

According to the indictment, on May 7, 2015, to maintain and improve their positions in the Traveling Vice Lords, the defendants shot four individuals from the same family.  The indictment alleges that the shooting was prompted by two of the family members’ attempts to leave the gang.            

The charges and allegations contained in the indictment are merely accusations.  The defendants are presumed innocent until and unless proven guilty. 

This case is being investigated by the ATF, FBI and the Detroit Police Department.  The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Eastern District of Michigan.

Today, the Justice Department reached a settlement agreement with Robertson County (Tennessee) Schools to revise assignment plans for middle and high school students in the district to promote diversity and ensure access to high quality educational programs for all students.  As a part of the student assignment plan, the agreement also requires the development of a new, innovative Science, Technology, Engineering and Math (STEM) magnet program at Springfield Middle School, which will be open to and draw students from across the district.  

The district, together with an expert consultant, will develop a plan to recruit and enroll a desegregated student population for the STEM magnet, which will open in the 2016-2017 school year.  The STEM magnet will receive dedicated resources and provide quality course offerings and facilities such as science labs.  Students will be able to progress in their STEM coursework at Springfield High School.  If the district is unsuccessful in recruiting a desegregated enrollment to Springfield Middle School through the magnet program, alternative rezoning plans will go into effect.

The district was required to revise its student assignment plans as a condition of the settlement agreement reached with the department on Feb. 2, 2015.  That agreement, in addition to the agreement reached today, aims to resolve the department’s determination that the district had yet to fulfill its desegregation obligations in the areas of student assignment and school construction.

“I commend the Robertson County school board for unanimously approving this agreement to advance educational opportunities for all students,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “The Justice Department is committed to working with Robertson County Schools to effectively implement the agreement and fulfill the district’s obligations to desegregate.”

Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.  

An Enterprise, Alabama, resident was arrested today after a federal grand jury sitting in the Southern District of Florida in Fort Lauderdale indicted him on one count of accepting unlawful kickbacks from 2009 through 2014, and five counts of tax evasion for tax years 2009 through 2013, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division.

According to the allegations in the indictment, Victor Villalobos worked for a federal contractor in Fort Rucker, Alabama, identified in the indictment as Company A, that furnished supplies, materials equipment and services to the government.  In 2009, Villalobos approached an individual identified in the indictment as Person X, who owned and operated Company B, a subcontractor of Company A based in Fort Lauderdale.  Villalobos solicited illegal kickbacks as payment on the federal subcontracts that Person X held in connection with Company A’s prime contract.  Villalobos agreed that in exchange for kickback payments he would refrain from conduct that would unfavorably affect Person X’s business relationship with Company A and would also help ensure that Person X obtained additional subcontracting business.  On Jan. 26, 2015, Villalobos met with Person X and accepted an envelope containing $5,000 in cash.  They met again approximately two weeks later and Villalobos accepted a bag containing $55,000 in cash as kickback payments.  From June 2009 to December 2014, Villalobos received approximately 57 separate wire funds transfers totaling more than $1.9 million in kickback payments from various foreign and domestic bank accounts controlled by Person X. 

Villalobos concealed these kickbacks by incorporating nominee entities, opening nominee bank accounts and failing to report the illegal kickback payments as income on his individual federal income tax returns for 2009 through 2013.

If convicted, Villalobos faces a statutory maximum sentence of 10 years in prison for the illegal kickback scheme and a statutory maximum sentence of five years in prison for each count of tax evasion.  He also faces potential fines of up to $250,000 on each count.

Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, the U.S. Air Force’s Office of Special Investigations and the U.S. Department of Defense’s Office of the Inspector General, who investigated this case, and Trial Attorneys Charles M. Edgar Jr. and Jason H. Poole of the Tax Division, who are prosecuting this case.  Ciraolo also thanked the U.S. Attorney’s Office of the Southern District of Florida for their substantial assistance.

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

The U.S. District Court for the Eastern District of California entered a consent decree of permanent injunction against Henh Wong Fresh Produce, of Sacramento, California, its owner, David C. Ly, and employees, Kin S. Ly and Thahn “Danny” C. Ly, to prevent the distribution of adulterated food, the Department of Justice announced today. 

Henh Wong Fresh Produce manufactured and distributed tofu, seasoned tofu, fried tofu, fried bean cakes, soy jello and soy bean drinks.  It also grew, harvested, prepared, packed, held and distributed ready-to-eat mung bean and soy bean sprouts.  In addition to manufacturing and distributing products under the name Henh Wong Fresh Produce, the firm also manufactured and distributed products as Henh Wong Fresh Product and Henh Wong Tofu. 

The department filed a complaint in the U.S. District Court for the Eastern District of California at the request of the U.S. Food and Drug Administration (FDA), alleging that the company and individuals have a history of processing food products under insanitary conditions. 

In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from committing violations of the federal Food, Drug and Cosmetic Act (FDCA).  The consent decree states that the defendants have ceased operations at their production facility.  The consent decree also requires Henh Wong Fresh Produce to remain closed, and requires that if the defendants wish to resume manufacturing and distributing food, the FDA first must determine that the firm’s manufacturing practices have come into compliance with the law.

“The department will not hesitate to bring enforcement actions against food producers who do not follow the necessary procedures to comply with our nation’s food safety laws,”

said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division.

According to the complaint, the FDA’s most recent inspection of the manufacturing facility at 2630 Fifth Street, Unit 92, in Sacramento, occurred in the summer of 2014.  As alleged in the complaint, during this inspection, FDA investigators found: live cockroaches and flies in the tofu production room; a live cockroach inside a plastic container used for holding ready-to-eat tofu; dead cockroaches in the sprout processing room; a dead cockroach in the mung bean dry storage room; and rodent excreta pellets in the seed dry storage and sprout processing rooms. 

Also, as alleged in the complaint, the FDA found numerous violative employee practices, including: employees using a high-pressure hose to clean equipment and debris on the floor in the tofu production room, causing water to splash from the floor onto nearby fried tofu and other in-process tofu products; an employee touching the lid of a dumpster covered with a black slimy residue and old food build-up and then handling ready-to-eat tofu without sanitizing her hands; an employee scooping sprouts off the floor and then touching various food product contact surfaces without first changing or sanitizing his gloves; an employee using a dirty floor broom to clean sprout processing equipment; and an employee touching a scale stained with a black slimy residue and then continuing to pack ready-to-eat sprouts without first changing or sanitizing his gloves.

According to the complaint, the FDA inspected Henh Wong’s facility five other times prior to the 2014 inspection — in 2003, 2005, 2008, 2010 and 2011 — and similar to the 2014 inspection, FDA investigators observed questionable or violative practices during all of these inspections. 

The government is represented by Counsel Melanie Singh of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel Laura Akowuah of the Department of Health and Human Services’ Office of General Counsel – Food and Drug Division.

The owner and operator of a Los Angeles pharmacy was sentenced today to 18 months in prison for his role in a fraud scheme involving the Medicare Part D prescription drug program.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division made the announcement.

Rouzbeh Javaherian, 35, of Beverly Grove, California, pleaded guilty to health care fraud on March 16, 2015.  In addition to imposing the prison term, U.S. District Court Judge Stephen V. Wilson of the Central District of California ordered Javaherian to pay $644,060 in restitution to Medicare.

Javaherian was a licensed pharmacist and owner of Emoonah Inc., doing business as Westaid Pharmacy and Medical Supply (Westaid), which was located in Los Angeles.  According to admissions in the plea agreement, from January 2008 to November 2014, Javaherian devised and executed a scheme to defraud the Medicare Part D program by paying illegal cash kickbacks to Medicare beneficiaries to induce them to submit their prescriptions to Westaid.  Javaherian then filled some of those prescriptions, but also submitted false and fraudulent claims to Medicare Part D plan sponsors for prescriptions that he did not actually fill.  Javaherian received approximately $644,060 in overpayments from Medicare as the result of the fraud scheme.

The case was investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Central District of California.  The case is being prosecuted by Trial Attorney Alexander F. Porter of the Fraud Section. 

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion.  In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Team, go to: www.stopmedicarefraud.gov.

Update: The indictment against one of the defendants below, Iain Nigel MacKeller, was dismissed without prejudice on May 22, 2022. 

An indictment was recently unsealed in Houston charging four men with various offenses based on their roles in smuggling pet products with counterfeit labels into the United States. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Catherine A. Hermsen of the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI) Kansas City, Missouri, Field Office and Special Agent in Charge Brian M. Moskowitz of the U.S. Immigration and Customs Enforcement Homeland Security Investigations’ (HSI) Houston Field Office made the announcement. 

Iain Nigel MacKellar, 58, of England; Lam Ngoc Tran, aka Mark Tran, 40, of Fountain Valley, California; Allen Smith, 49, of Phoenix; and William Humphreys, 58, of Laguna Hills, California, were indicted on July 9, 2015.  They are charged with conspiracy to commit wire fraud, mail fraud and trafficking in counterfeit labels, and smuggling goods into the United States.  Mackellar and Tran also are charged with additional counts of wire fraud, mail fraud, trafficking in counterfeit labels and smuggling.  The defendants were suspected members of one of the largest known groups of importers of counterfeit packaged pet products.

Smith turned himself in to authorities this morning and made his initial appearance before U.S. Magistrate Judge Mary Milloy.  Humphreys and Tran were taken into custody in Phoenix and in California, respectively.  Tran made his initial appearance in Houston on July 29, while Humphreys is set to appear tomorrow before Judge Milloy.  MacKellar is considered a fugitive and a warrant remains outstanding for his arrest.

The indictment alleges the defendants smuggled veterinary products that were not manufactured for the U.S. market into the United States for distribution under false labels, including Frontline and Frontline Plus pesticides manufactured by Merial Pharmaceutical Company (Merial).  In some cases, the defendants allegedly imported the products into the U.S. under the pretense that the products were destined for use by charitable organizations, but instead distributed the products to large retail outlets for commercial sale, according to the indictment. 

Merial did not participate in or authorize the alleged unlawful conduct.  All known counterfeit veterinary products have been removed from store shelves.

The charges contained in an indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

This case is being investigated by the FDA-OCI, HSI and the Environmental Protection Agency.  The case is being prosecuted by Assistant Deputy Chief John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Jennifer Lowery and Kebharu Smith of the Southern District of Texas.  The U.S. Attorney’s Office of the Central District of California and the CCIPS Cybercrime Lab provided significant assistance.

A Troy, Alabama, man was sentenced to prison today in U.S. District Court for the Middle District of Alabama for his involvement in a stolen identity tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.

Devon Tucker, 31, a former jailer of the Troy Police Department at the city jail, pleaded guilty earlier this year to one count of conspiracy to defraud the United States and one count of aggravated identity theft.  U.S. District Judge Callie V.S. Granade sentenced Tucker to serve 32 months in prison and three years of supervised release, and ordered him to pay $13,162 in restitution to the Internal Revenue Service (IRS).

According to court documents, from January 2014 to January 2015, Tucker stole the personal identification information of approximately 150 individuals who were processed into the Troy city jail.  Tucker provided those identities to his co-conspirators for the purpose of filing false federal income tax returns claiming fraudulent refunds from the U.S. Treasury.  Tucker was paid in pre-paid debit cards in the names of the identity theft victims for his involvement in the scheme.     

“The Tax Division will vigorously pursue and prosecute government employees who abuse their positions by exploiting their access to personal information to victimize members of the community and steal from the U.S. Treasury,” said Acting Assistant Attorney General Ciraolo. 

“It is always a sad day when a law enforcement officer sworn to uphold the law, takes advantage of his position for his own personal gain,” stated U.S. Attorney Beck.  “This district will continue to vigorously prosecute those who steal identities and file fraudulent tax returns, regardless of where they are employed or what position they hold.”

Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Gregory P. Bailey and Michael P. Hatzimichalis of the Tax Division and Assistant U. S. Attorney Jonathan Ross of the Middle District of Alabama, who prosecuted this case.

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

The Department of Justice announced today that Bank EKI Genossenschaft (Bank EKI) has reached a resolution under the department’s Swiss Bank Program.

The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States.  Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts.  Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.

Under the program, banks are required to:

• Make a complete disclosure of their cross-border activities;

• Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;

• Cooperate in treaty requests for account information;

• Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;

• Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and

• Pay appropriate penalties.

Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.

According to the terms of the non-prosecution agreement signed today, Bank EKI agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute Bank EKI for tax-related criminal offenses.

Bank EKI was founded in 1852 and has its headquarters in the tourist resort town of Interlaken, Switzerland.  It also operates small branch offices in Bönigen, Wilderswil, Grindelwald and Lauterbrunnen, Switzerland.

Bank EKI opened, serviced and profited from accounts for U.S. clients with the knowledge that many were likely not complying with their tax obligations.  Many of the U.S.-related accounts were transferred from other Swiss financial institutions that were closing such accounts, and Bank EKI knew or had reason to know that a portion of these accounts were likely undeclared.

Bank EKI provided traditional Swiss banking services that it knew could assist, and that did in fact assist, certain U.S. taxpayers in concealing their Bank EKI accounts from the Internal Revenue Service (IRS).  One such service was hold mail: for a fee, Bank EKI would hold all mail correspondence for a particular client at the bank.  By accepting and maintaining such accounts, Bank EKI thus ensured that documents reflecting the existence of the accounts remained outside the United States, beyond the reach of U.S. tax authorities and protected by Swiss banking secrecy laws.

Due in part to the means provided by Bank EKI and its personnel, and with the knowledge that Swiss banking secrecy laws would prevent Bank EKI from disclosing their identities to the IRS, many of the U.S. clients of Bank EKI filed false and fraudulent U.S. Individual Income Tax Returns, or IRS Forms 1040, that failed to report their respective interests in their undeclared accounts and the related income.  Moreover, many of the U.S. clients of Bank EKI also failed to file and otherwise report their undeclared accounts on Reports of Foreign Bank and Financial Accounts (FBARs).

Bank EKI did not sufficiently implement an effective system of supervisory policies, procedures or controls over its relationship managers to increase its U.S.-related clients’ tax compliance.  Moreover, Bank EKI’s relationship managers too readily accepted representations and directions from the accountholders without adequately investigating questionable information.

Since Aug. 1, 2008, Bank EKI held a total of 64 U.S.-related accounts with just over $21 million in aggregate assets.  Bank EKI will pay a penalty of $400,000.

Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS, and in particular, IRS-Criminal Investigation and the IRS Large Business and International Division for their substantial assistance.  Ciraolo also thanked Dara B. Oliphant, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.

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

The Department of Justice filed a complaint today alleging that three Wisconsin companies that manufacture dietary supplements were not complying with the U.S. Food and Drug Administration’s (FDA’s) current good manufacturing practices and were misbranding their products.  The complaint was filed in the Eastern District of Wisconsin against Atrium Inc., Aspen Group Inc., Nutri-Pak of Wisconsin Inc., and the owners of the three firms, James F. Sommers and Roberta A. Sommers.  The companies, located in Wautoma, Wisconsin, sell dietary supplements to retail stores, healthcare professionals and directly to consumers via the Internet.

The complaint alleged that the firms were violating the federal Food, Drug and Cosmetic Act (FDCA) by failing to comply with current good manufacturing practices that, among other things, require manufacturers to establish specifications to ensure the identity and potency of the ingredients in dietary supplements.  The complaint also alleged that the firms’ products were misbranded because they failed to identify the part of the plant from which the ingredients were derived, did not list the number of servings per container and failed to identify the serving size.

Supplements manufactured by the firms included Atrium brands Chole-Sterin, Di-Acid Stim, Ocu-Comp and Super-Flex; Aspen brand Flexile-Plus; and Nutri-Pak brands Glucobiotic Supreme and Ocu-Comp.

“Makers of dietary supplements who do not follow the FDA’s regulations put the public at risk,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “The Department of Justice will continue to work with the FDA to try to make sure that consumers are ingesting safe products and are getting what they paid for.”

“This case and the remedial actions required by the consent decree reflect the continuing focus of our office and the Justice Department generally in safeguarding and promoting the health and well-being of our people,” said U.S. Attorney James L. Santelle of the Eastern District of Wisconsin.  “The corrections that these companies are required to accomplish along with oversight and inspection of them, will ensure compliance with the law and responsible sales to consumers.”

In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from violating the FDCA.  The consent decree requires the dietary supplement manufacturer to cease all operations and requires that if the defendants wish to resume manufacturing dietary supplements in the future, the FDA first must determine that their manufacturing practices have come into compliance with the law.  The proposed consent decree is awaiting approval by the court.

The case is being handled by Trial Attorney Patrick Jasperse of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Susan M. Knepel of the Eastern District of Wisconsin, with assistance from Deeona Gaskin of the FDA’s Office of the Chief Counsel.

A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.

Twenty-two members of the international gang Mara Salvatrucha-13 (MS-13) have now been sentenced, many to life or decades in prison, for their roles in violent crimes in the Atlanta area between 2005 and 2010, including murders, attempted murders and armed robberies. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney John Horn of the Northern District of Georgia made the announcement.

On July 15, 2013, a jury convicted the following defendants:

• Miguel Alvarado-Linares, aka Joker, 26, of Norcross, Georgia, was convicted of Racketeer Influenced and Corrupt Organization (RICO) conspiracy involving murder, two counts of Violent Crime in Aid of Racketeering (VICAR) involving murder, two counts of VICAR involving attempted murder and four firearms offenses.  He was sentenced on Oct. 15, 2013, to serve three life sentences followed by 85 years in prison.
• Ernesto Escobar, aka Pink Panther, aka Flaco, 32, of Norcross, was convicted of one count of RICO conspiracy involving murder, one count of VICAR involving murder and one firearms offense.  He was sentenced on Dec. 20, 2013, to serve two life sentences followed by 10 years in prison.
• Dimas Alfaro-Granados, aka Toro, 32, of Duluth, Georgia, was convicted of one count of RICO conspiracy involving murder, two counts of VICAR involving murder and two firearms offenses.  He was sentenced on Oct. 30, 2013, to serve three life sentences followed by 35 years in prison.
• Jairo Reyna-Ozuna, aka Flaco, 30, of Norcross, was convicted of one count of RICO conspiracy and one firearms offense.  He was sentenced on Jan. 31, 2014, to serve 13 years in prison.

According to the evidence introduced at trial, Alvarado-Linares and Alfaro-Granados, along with another gang member, killed Lal Ko in October 2006.  Ko was a fellow MS-13 member, but Alvarado-Linares, one of the gang leaders, thought that Ko was cooperating with police and ordered his murder. 

The trial evidence showed that in December 2006, when another MS-13 gang member wanted to quit the gang, Alvarado-Linares and Alfaro-Granados ordered him to kill a rival gang member as a condition of leaving MS-13.  Following orders, on Christmas Eve 2006, that gang member shot at a vehicle traveling on an interstate highway that he believed contained rival gang members.  A 20-year-old passenger in the vehicle was killed.  

The evidence at trial also demonstrated that on New Year’s Eve 2006, Alvarado-Linares shot two members of a rival gang.

Finally, the evidence introduced at trial showed that on Aug. 5, 2007, Reyna-Ozuna, who was a gang leader at the time, gave Escobar a .45 caliber semi-automatic handgun and instructed him to shoot a teenager with whom Escobar had an altercation earlier that day.  

On Nov. 21, 2013, a jury convicted the following defendants:

• William Espinoza, aka Cheberria, aka El Crazy, 33, of Norcross, was convicted of one count of RICO conspiracy involving murder, one count of VICAR involving attempted murder and one firearms offense.  He was sentenced on April 15, 2014, to serve 20 years and eight months in prison.
• Remberto Argueta, aka Pitufo, 26, of Lilburn, Georgia, was convicted of one count of RICO conspiracy involving murder, one count of VICAR involving murder and one firearms offense.  He was sentenced on Oct. 29, 2014, to serve two life sentences followed by five years in prison.

According to the evidence presented at trial, on April 13, 2007, Argueta, along with other gang members, attempted to rob Arpolonio Rios-Jarquin, who the defendants suspected was drug dealer.  After discovering that Rios-Jarquin was armed, Argueta and fellow MS-13 members engaged in a shootout with Rios-Jarquin, during which Rios-Jarquin was killed. 

The trial evidence showed that, on Oct. 24, 2007, Argueta and several other MS-13 members shot at rival gang members, hitting one in the back and another in the hip and arm.

The evidence also demonstrated that, while at a nightclub in DeKalb County, Georgia, on July 20, 2008, Espinoza and other members of MS-13 engaged in a fight with persons they suspected were members of a rival gang.  During the fight, Espinoza shot a man in the stomach. 

Just two days later, according to evidence introduced at trial, Espinoza and four other MS-13 members identified a victim to rob for beer money.  When the victim resisted, Espinoza shot him through the head.

On Oct. 7, 2014, a jury convicted the following defendant:

• Elio Marroquin-Lopez, aka Perico, 29, of Chamblee, Georgia, was convicted of one count of RICO conspiracy.  He was sentenced on Oct. 29, 2014, to serve seven years and two months in prison.

According to the evidence introduced at trial, on Dec. 15, 2008, Marroquin-Lopez, who was one of the gang leaders, and two other gang members shot at the owner of an apartment that the defendants were attempting to rob. 

The trial evidence also showed that on March 13, 2009, Marroquin-Lopez fought two suspected gang members and shot at one of them.

Finally, the evidence at trial demonstrated that Marroquin-Lopez often distributed baggies of cocaine to fellow MS-13 members at meetings and instructed them to sell the cocaine at clubs.

The following defendants previously pleaded guilty and have been sentenced:

• Jose Delgado, aka Fantasma, 28, of Lawrenceville, Georgia, pleaded guilty to RICO conspiracy involving murder and two counts of VICAR involving murder, and was sentenced on July 31, 2015, to serve 12 years in prison.
• Alex Ferrufino, aka Whiskey, 35, Tucker, Georgia, pleaded guilty to two counts of VICAR involving attempted murder and one firearms offense, and was sentenced on Sept. 11, 2014, to serve 25 years in prison.
• Joseph Ivan Dias, aka Travieso, 27, of Gainesville, Georgia, pleaded guilty to RICO conspiracy and was sentenced on April 1, 2015, to serve 14 years in prison.
• Miguel Guevara, aka Blacky, 31, of Fort Walton Beach, Florida, pleaded guilty to RICO conspiracy involving murder and a firearms offense, and was sentenced on Feb. 13, 2015, to serve 30 years in prison.
• Kenedis Bonilla, aka Mago, 33, of Tucker, pleaded guilty to RICO conspiracy involving murder and a firearms offense, and was sentenced on June 13, 2015, to serve 15 years in prison.
• Salvador Franco, aka Smiley, 30, of Norcross, pleaded guilty to RICO conspiracy and a firearms offense, and was sentenced on Sept.11, 2014, to serve 12 years in prison.
• Edwin Menjivar, aka Chilly Willy, aka Vago, 33, of Norcross, pleaded guilty to RICO conspiracy and VICAR involving attempted murder, and was sentenced on Nov. 21, 2014, to serve 11 years in prison.
• Omar Cubillos, aka Pancho, 30, of Gainesville, pleaded guilty to RICO conspiracy involving murder and a firearms offense, and was sentenced on June 15, 2015, to serve 20 years in prison.
• Carlos Mendoza, aka Catracho, 30, of Atlanta, pleaded guilty to RICO conspiracy involving murder and a firearms offense, and was sentenced on April 30, 2015, to serve 17 years and six months in prison.
• Emmanual Hidalgo, aka Scooby, 29, of Chamblee, pleading guilty to RICO conspiracy involving murder and a firearms offense, and was sentenced on Nov. 21, 2014, to serve 25 years in prison.
• Christopher Castro Ramirez, aka Demente, 26, of Norcross, pleaded guilty to RICO conspiracy and was sentenced on Nov. 1, 2012, to serve two years and six months in prison.
• Enzo Baires, aka Ghost, 25, of Norcross, pleaded guilty to RICO conspiracy involving murder and was sentenced on May 11, 2015, to serve 12 years in prison.
• Irvin Mejia-Cruz, aka Lil Triste, aka Triste, 25, of Duluth, pleaded guilty to RICO conspiracy and was sentenced on Feb. 13, 2015, to serve nine years in prison.
• Walter Aldana, aka Goofy, 25, of Norcross, pleaded guilty to RICO conspiracy and was sentenced on Feb. 13, 2015, to serve 10 years in prison.
• William Pineda, aka Slayer, 32, of Lawrenceville, pleaded guilty to RICO conspiracy and was sentenced on Dec. 11, 2014, to serve seven years in prison.

These cases were investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the FBI with assistance from the U.S. Marshals Service, the Gwinnett County, Georgia, Police Department, the DeKalb County Police Department, the Norcross Police Department, the Chamblee Police Department, and the Gwinnett County Sheriff’s Office.

These cases were prosecuted by Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Paul R. Jones and Kim S. Dammers of the Northern District of Georgia.