District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Florida Home Health Care Company Agrees to Pay $1.1 Million to Resolve False Claims Act AllegationsRead the Press Release
Recovery Home Care Inc., Recovery Home Care Services Inc. (collectively Recovery Home Care) and National Home Care Holdings LLC have agreed to pay $1.1 million to resolve allegations that the Recovery Home Care entities violated the False Claims Act by improperly paying doctors for referrals of home health care services provided to Medicare patients, the Department of Justice announced today. The Recovery Home Care entities provide home health care services to Medicare beneficiaries and were purchased by National Home Care Holdings LLC in 2012, after the conduct addressed by the settlement occurred.
“Health care providers that attempt to profit by providing illegal inducements will be held accountable,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”
From 2009 through 2012, Recovery Home Care, headquartered in West Palm Beach, Florida, allegedly paid dozens of physicians thousands of dollars per month to perform patient chart reviews. According to the government’s lawsuit, the physicians were over-compensated for any actual work they performed and, in reality, payments to the physicians were used to induce them to refer their patients to Recovery Home Care, in violation of the Anti-Kickback Statute and the Stark Law.
“Inducements of this kind are designed to improperly influence a physician’s independent medical judgment,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “This lawsuit and today’s settlement attests to our office’s on-going commitment to safeguard federal health care program beneficiaries from the effects of such illegal conduct.”
The Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare. The Stark Law forbids a home health care provider from billing Medicare for certain services referred by physicians who have a financial relationship with the entity.
The settlement partially resolves allegations made in a lawsuit filed in federal court in Tampa, Florida, by Gregory Simony, a former employee of Recovery Home Care. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in part in this case. Simony will receive $198,000 of the recovered funds. The government continues to litigate this case against Recovery Home Care’s previous owner, Mark Conklin.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida and HHS-OIG.
The case is captioned United States ex rel. Simony v. Recovery Home Care, et al., Case No. 8-12-cv-2495-T-36TBM (M.D. Fla.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Three Defendants Charged with One of the Largest Reported Data Breaches in U.S. HistoryRead the Press Release
One Of The Defendants Has Already Pleaded Guilty
An indictment was unsealed yesterday against two Vietnamese citizens who resided in the Netherlands, for their roles in hacking email service providers throughout the United States. The guilty plea of one of the defendants was also unsealed at the same time. In addition, a federal grand jury returned an indictment this week against a Canadian citizen for conspiring to launder the proceeds obtained as a result of the massive data breach.
Assistant Attorney General Leslie R. Caldwell of the Criminal Division, Acting U.S. Attorney John A. Horn of the Northern District of Georgia, Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office, Special Agent in Charge Reginald Moore of the United States Secret Service’s (USSS) Atlanta Field Office and Special Agent in Charge Veronica F. Hyman-Pillot with the Internal Revenue Service-Criminal Investigation’s (IRS-CI) made the announcement.
“These men — operating from Vietnam, the Netherlands, and Canada — are accused of carrying out the largest data breach of names and email addresses in the history of the Internet,” said Assistant Attorney General Caldwell. “The defendants allegedly made millions of dollars by stealing over a billion email addresses from email service providers. This case again demonstrates the resolve of the Department of Justice to bring accused cyber hackers from overseas to face justice in the United States.”
“This case reflects the cutting-edge problems posed by today’s cybercrime cases, where the hackers didn’t target just a single company; they infiltrated most of the country’s email distribution firms,” said Acting U.S. Attorney Horn. “And the scope of the intrusion is unnerving, in that the hackers didn’t stop after stealing the companies’ proprietary data—they then hijacked the companies’ own distribution platforms to send out bulk emails and reaped the profits from email traffic directed to specific websites.”
“Large scale and sophisticated international cyber hacking rings are becoming more problematic for both the law enforcement community that is faced with the challenges of identifying them and laying hands on them, but also the fortune 500 companies that are so often their targets,” said Special Agent in Charge Johnson. “The federal indictments, apprehensions and extraditions in this case represents several years of hard work as the FBI and its cadre of cyber trained agents and technical experts acted quickly to stop the ongoing damage to the numerous victim companies as a result of these individuals’ hacking activities. In August 2012, the FBI, with the assistance of its legal attaches stationed abroad and in conjunction with Dutch law enforcement officials, executed a search warrant in the Netherlands that disrupted continued compromises of those companies while allowing U.S. authorities to advance its investigation. That investigation targeted not only the hackers but the businesses that helped monetize the data that was stolen from those victim companies. This case further reflects the productive partnership of the FBI and the U.S. Secret Service in aggressively addressing this 21st century crime problem.”
“Our success in this case and other similar investigations is a result of our close work with our law enforcement partners,” said Special Agent in Charge Moore. “The Secret Service worked closely with the Department of Justice and the FBI to share information and resources that ultimately brought these cyber criminals to justice. This case demonstrates there is no such thing as anonymity for those engaging in data theft and fraudulent schemes.”
“Those individuals who line their pockets with money gained through deceiving others should know they will not go undetected and will be held accountable,” said Special Agent in Charge Hyman-Pillot. “IRS Criminal Investigation is committed to unraveling financial transactions to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to allegations in the indictments, between February 2009 and June 2012, Viet Quoc Nguyen, 28, a citizen of Vietnam, allegedly hacked into at least eight email service providers (ESPs) throughout the United States and stole confidential information, including proprietary marketing data containing over one billion email addresses. Nguyen, along with Giang Hoang Vu, 25, also a citizen of Vietnam, then allegedly used the data to send “spam” to tens of millions of email recipients. The data breach was the largest in U.S. history and was the subject of a Congressional inquiry in June 2011.
David-Manuel Santos Da Silva, 33, of Montreal, Canada, was also indicted by a federal grand jury on March 4, 2015, for conspiracy to commit money laundering for helping Nguyen and Vu to generate revenue from the “spam” and launder the proceeds.
According to allegations in the indictments, Da Silva, the co-owner, president and a director of 21 Celsius Inc., a Canadian corporation that ran Marketbay.com, entered into an affiliate marketing arrangement with Nguyen that allowed the defendants to generate revenue from the computer intrusions and data thefts.
As an affiliate marketer, Nguyen allegedly received a commission on sales generated from Internet traffic that he directed to websites promoting specific products. Nguyen allegedly used the information stolen from the ESPs to send “spam” emails to tens of millions of customers and provided hyperlinks to allow the purchase of the products. These products were marketed by Da Silva’s Marketbay.com.
Between approximately May 2009 and October 2011, Nguyen and Da Silva received approximately $2 million for the sale of products derived from Nguyen’s affiliate marketing activities.
Vu was arrested by Dutch law enforcement in Deventer, Netherlands, in 2012 and extradited to the United States in March 2014. On Feb. 5, 2015, Vu pleaded guilty to conspiracy to commit computer fraud. He is scheduled to be sentenced on April 21, 2015, before U.S. District Judge Timothy C. Batten Sr. of the Northern District of Georgia. Nguyen is a fugitive.
Da Silva was arrested based upon charges set forth in a criminal complaint at Ft. Lauderdale International Airport on Feb. 12, 2015, and is scheduled to be arraigned today in Atlanta before Magistrate Judge E. Clayton Scofield III.
The charges contained in an indictment are merely accusations, and defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI with the assistance of the USSS and IRS-CI. Law enforcement in the Netherlands and the Criminal Division’s Office of International Affairs also provided valuable assistance. This case is being prosecuted by Trial Attorney Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Steven D. Grimberg of the Northern District of Georgia.
Da Silva Indictment
Nguyen Indictment
The Executive Office for Immigration Review to Host Stakeholder Teleconference and Webinar on Recognition and Accreditation ProgramRead the Press Release
SUMMARY - The Executive Office for Immigration Review (EOIR) invites interested parties to participate in a teleconference and webinar providing a general overview of EOIRs recognition and accreditation program. This event is intended to educate interested parties about the process for obtaining recognition for an organization and accreditation for individuals.
DATE: Friday, March 20, 2015, at 2 p.m.
RSVP: To RSVP for the meeting, please contact Lauren Alder Reid, Counsel for Legislative and Public Affairs at 703-305-0289 or email [email protected], by noon on Wednesday, March 18, 2015. Please note that there will be no in-person attendance for this event. EOIR will send call-in and Web access information on Wednesday, March 18th, to those who RSVP. To attend the meeting via conference call and Web, please RSVP with the name(s) of the attendee(s), the attendees organization, and an email address where instructions may be sent for accessing the conference call and Web meeting.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
New York Doctor Pleads Guilty in $14.2 Million Medicare Fraud SchemeRead the Press Release
A New York doctor pleaded guilty today for his involvement in a scheme to fraudulently bill Medicare for $14.2 million in claims for medically unnecessary treatments.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) New York Field Office made the announcement.
Roman Johnson, 40, formerly of Buffalo, New York, pleaded guilty before U.S. Magistrate Judge Marilyn D. Go in the Eastern District of New York to one count of conspiracy to commit health care fraud. Sentencing will be scheduled at a later date. As part of the plea, Johnson agreed to pay $5,386,363 in restitution to the Medicare program, which represents the total amount of money Medicare paid as the result of the fraudulent claims.
In connection with his guilty plea, Johnson admitted that he and other medical providers at the clinic submitted approximately $14.2 million in false and fraudulent claims to Medicare for medically unnecessary vitamin infusions, physical therapy, and occupational therapy that did not qualify for reimbursement by Medicare.
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 Eastern District of New York. The case was prosecuted by Trial Attorney Bryan D. Fields of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Erin E. Argo of the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, HHS’ 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 Team (HEAT), go to: www.stopmedicarefraud.gov.
Monmouth County, New Jersey, Doctor Sentenced to 46 Months in Prison on Structuring and Tax ChargesRead the Press Release
A Monmouth County, New Jersey, doctor was sentenced today in U.S. District Court in Trenton, New Jersey, to serve 46 months in prison for structuring cash transactions in order to avoid reporting requirements and for aiding and assisting in the filing of his own false tax returns, U.S. Attorney Paul J. Fishman of the District of New Jersey and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
Paul DiLorenzo of Ocean Township, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to two counts of a second superseding indictment charging him with structuring financial transactions and aiding and assisting in the filing of false tax returns. In addition to the prison term, Judge Wolfson sentenced DiLorenzo to three years of supervised release, ordered DiLorenzo to pay restitution to the IRS of $304,293, and ordered DiLorenzo to forfeit nearly $1,000,000 in illegally derived proceeds.
According to documents filed in this case and statements made in court:
Between 2009 and June 27, 2012, DiLorenzo received more than $2 million in cash payments from his patients. The medical office received payments exceeding $10,000 in a single day on at least 35 occasions. Between May 28, 2009, and Nov. 2, 2011, DiLorenzo deposited $1 million in cash into banks accounts in his name and in the name of his business. The deposits included 150 separate transactions, and all transactions but one were for less than $10,000. Certain currency transactions of more than $10,000 trigger financial institutions to comply with Currency Transaction Report requirements. DiLorenzo admitted that he made the deposits for less than $10,000 in order to evade the reporting requirements.
On March 29, 2011, DiLorenzo aided and assisted in the filing of a false federal income tax return for the 2010 tax year that reported gross receipts of $444,331. His actual gross receipts, however, were more than $1 million. In May 2012, DiLorenzo aided and assisted in the filing of a false tax return for the 2011 tax year in which he reported gross receipts of $537,236, when in fact his actual gross receipts were in excess of $800,000.
U.S. Attorney Fishman and Acting Assistant Attorney General Ciraolo commended special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, New Jersey; special agents of IRS-Criminal Investigations, under the direction of Special Agent in Charge Jonathan D. Larsen; and special agents and task force officers from the Drug Enforcement Administration’s Tactical Diversion Squad, under the direction of Special Agent in Charge Carl Kotowski, who investigated the case, and Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office for the District of New Jersey located in Trenton, and Trial Attorney Yael Epstein of the Justice Department’s Tax Division who prosecuted the case.
Leader of Imperial Gangsters Convicted in Five Murders, One Attempted Murder and Other Gang-Related CrimesRead the Press Release
A leader of the Imperial Gangsters street gang was convicted by a federal jury in the Northern District of Indiana of five counts of murder in aid of racketeering, one count of attempted murder in aid of racketeering, one firearms count related to the attempted murder, one count of engaging in a RICO conspiracy, one count of engaging in a conspiracy to distribute narcotics, and related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana made the announcement.
Juan Briseno aka “Tito”, 25, of Hammond, Indiana, was part of a 24-defendant indictment alleging that members of the Imperial Gangsters committed 13 homicides in East Chicago, Hammond and Gary, Indiana. The indictment also charged a decade-long racketeering conspiracy that involved 19 additional attempted murders and the large scale distribution of cocaine and marijuana. Sentencing is scheduled for June 15, before Chief Judge Philip P. Simon of the Northern District of Indiana.
According to evidence presented at trial, the Imperial Gangsters had a standing rule to shoot on sight any rival gang member. They also had a policy to shoot anyone selling drugs in their neighborhood without their permission. Briseno was convicted of five murders, which the evidence demonstrated were committed pursuant to the gang’s policies and in furtherance of the 149 th Street Imperial Gangsters, a violent clique of the Imperial Gangsters based in East Chicago.
The evidence further demonstrated that Briseno exercised a leadership role in the gang, in which he supervised the “shorties, or prospective members of the 149th Street Imperial Gangsters. Briseno expressed no remorse for his participation in various murders, and indeed bragged about killings and encouraged others to do the same.
With regard to the specific murders, the evidence at trial demonstrated that Briseno knocked on Luis Ortiz’s apartment door in Hammond, Indiana, on Sept. 26, 2007, and shot him dead in the doorway to the apartment. Briseno targeted Ortiz because he was a member of the rival Latin King Street Gang.
Additionally, the evidence demonstrated that Briseno committed the double murder of Miguel Mejias, a Latin King living in Imperial Gangster territory, and Michael Sessum, an associate of Mejias, while they were unarmed and bringing takeout food to their pregnant girlfriends on June 3, 2008. During that murder, multiple shots fired by Briseno entered Mejias’ residence, striking a female victim in the arm while she was holding her infant child. Another pregnant female victim and multiple minor victims were also in the apartment at the time of the shooting. According to testimony at trial, Mejias implored another individual to tell Briseno that he was no longer “gangbanging” and did not want any trouble. In response to this message, Briseno said, “[explecetive] him, he was going to bring [Latin] Kings into our neighborhood.”
The evidence at trial also demonstrated that Briseno and his associates murdered rival Two-Six gang member, Miguel Colon, on Feb. 7, 2010, as Colon came out of a party. In this incident, Briseno and Colon exchanged gunfire, endangering numerous innocent individuals who were in the vicinity.
Finally, the evidence at trial demonstrated that Briseno murdered Latroy Howard on June 19, 2010, for selling drugs in an Imperial Gangster-controlled neighborhood without the permission of the gang. A video introduced at trial showed Briseno circling the block in his car and then walking up on foot and shooting the unarmed Howard twice in the head at point-blank range.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the East Chicago Police Department, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County High Intensity Drug Trafficking Area Program. This case is being prosecuted by Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Section.
Italian Shipping Company Fined $2.75 Million for Environmental CrimesRead the Press Release
Carbofin S.p.A., an Italian domiciled company that owned and operated the M/T Marigola was sentenced to pay an overall criminal penalty of $2.75 million by the Honorable Virginia M. Hernandez Covington for knowingly falsifying the vessel’s oil record book in violation of the Act to Prevent Pollution from Ships (APPS), announced the Department of Justice Environment and Natural Resources Division and the U.S. Attorney’s Office for the Middle District of Florida.
Out of the $2.75 million criminal penalty, $600,000 will be paid to the National Marine Sanctuary Foundation for the benefit of Florida’s only national marine sanctuary: the Florida Keys National Marine Sanctuary. The funds are to be used to support the protection and preservation of natural resources located in and adjacent to the sanctuary, including the cleanup and remediation of pollution in the sanctuary; restoration of injured resources, particularly coral reefs and seagrass beds and species dependent on those habitats. The funds will also support scientific research in, and public education about, the Florida Keys National Marine Sanctuary.
During 2013 and 2014, on numerous international voyages, senior members of the crew of the M/T Marigola directed the installation and use of a so-called “magic hose” to dispose of sludge, waste oil and oil-contaminated bilge water directly into the sea bypassing required pollution prevention equipment. On April 16, 2014, the vessel called upon the Port of Tampa to load anhydrous ammonia. Coast Guard inspectors boarded the vessel and were approached by two junior engineering crew members who showed the inspectors a video of the “magic pipe” hooked up between piping leading to the bilge tank and the vessel’s boiler blow down valve. The boiler blow down valve is a discharge point for the boiler to release hot water and steam. The inspectors had the valve removed and an oily black substance was discovered. Oil samples taken from the “magic hose,” the bilge piping and the boiler blow down valve matched. The Chief Engineer, Carmelo Giano, and the Second Engineer, Alessandro Messore, had previously pleaded guilty and were sentenced for their role in ordering the use of the “magic hose” to illegally discharge oily waste into the sea.
“We are extremely grateful to the U.S. Department of Justice in supporting the work of the National Marine Sanctuary Foundation on behalf of the nation's marine sanctuaries, including here at the Florida Keys National Marine Sanctuary,” said President and CEO Jason Patlis of the National Marine Sanctuary Foundation. “These funds will go to critical education, research and restoration activities, including deployment of mooring buoys, coral reef restoration and study and mitigation of invasive species impacts.”
“Marine environmental protection is one of the Coast Guard's primary missions,” said Captain Gregory Case of the Port at Sector St. Petersburg. “The Coast Guard takes marine pollution seriously and works cohesively with our partner agencies to hold those who violate international law accountable for their actions. We anticipate the results of this case will deter future illegal oil discharges into the sea.”
Consistent with requirements in the APPS regulations, a vessel like the M/T Marigola, must maintain a record known as an oil record book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person or persons in charge of the operations. Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the oily water separator (OWS). Waste oil and sludge can only be disposed of using an on-board incinerator or by discharging the waste to a shore-side facility, barge or tanker truck. Giano and Messore falsified the oil record book by not recording that oily waste was being disposed of through the boiler blow down valve.
During the course of the investigation, it was revealed that the oil record book for the M/T Marigola was falsified since at least June 16, 2013. The investigation also revealed that illegal oily waste discharges had occurred from two other vessels owned and operated by Carbofin, the M/T’s Marola and Solaro. On the M/T Marola, a “magic hose” was used between on or about December 2012 and April 2013 and on the M/T Solaro between on or about February to August 2013.
The case was investigated by U.S. Coast Guard Sector St. Petersburg and the U.S. Coast Guard Investigative Service. The case was prosecuted by Kenneth E. Nelson of the Environmental Crimes Section of the Department of Justice and Matthew Mueller of the U.S. Attorney’s Office of the Middle District of Florida.
Former Puerto Rico Police Officer Sentenced for Civil Rights Violations Related to Fatal BeatingRead the Press Release
Former Puerto Rico Police Sergeant Erick Rivera Nazario was sentenced today to serve 96 months in prison followed by three years supervised release for violating the civil rights of Jose Luis Irizarry Perez, 19, by striking him with a police baton during a fatal police-involved beating, announced Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Rosa Emilia Rodriguez-Velez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI San Juan Field Office.
Rivera Nazario pleaded guilty to one count of depriving Irizarry Perez of his civil rights by striking him with a police baton while the young man was injured, restrained, and not posing a threat to others. Two other former Puerto Rico police officers have already been sentenced for their obstructive conduct during the federal investigation into the incident, while three other former Puerto Rico police officers, who also pleaded guilty, are awaiting sentencing for their roles in the beating and subsequent obstruction of the investigation. According to documents filed in connection with the guilty pleas, Rivera Nazario and another former Puerto Rico police officer violated the constitutional rights of Irizarry Perez by striking him with their police batons while another former police officer physically restrained Irizarry Perez during an election evening celebration at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008.
U.S. District Court Judge Juan M. Perez Gimenez issued the sentence, which will be followed by three years of supervised release. During the three-year term, the defendant will be under federal supervision, and risks additional prison time should he violate any terms of his supervised release.
“The department remains steadfastly committed to prosecuting excessive force by police officers and today’s sentence reflects the severity of such criminal conduct,” said Acting Assistant Attorney General Gupta. “Although nothing can replace the tragic loss of life that resulted from the police-involved beating, I hope that this sentence helps to provide some sense of closure for Jose Luis Irizarry Perez’s family.”
“The U.S. Attorney’s Office will continue to defend the civil rights of the people of Puerto Rico,” said U.S. Attorney Rodriguez-Vélez. “It is appalling that law enforcement officers choose to violate their oath of office and abuse their position to deprive people of their civil liberties.”
This case was investigated by the FBI’s San Juan Division and is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorneys Shan Patel and Olimpia E. Michel of the Civil Rights Division and Assistant U.S. Attorney Jose A. Contreras of the District of Puerto Rico.
Alabama and Georgia Residents Sentenced to Prison for Their Participation in $3 Million Identity Theft SchemeRead the Press Release
Charnesha Alexander, a Phenix City, Alabama, resident was sentenced yesterday to serve 111 months in prison for her role in a more than $3 million Stolen Identity Refund Fraud (SIRF) tax scheme.
Alexander was also sentenced to three years of supervised release and order to pay restitution in the amount of $840,692. On Feb. 5, a co-conspirator in the scheme, Robert Walker, of Columbus, Georgia, was sentenced to serve 94 months in prison, three years of supervised release and ordered to pay restitution in the amount of $840,692. Alexander and Walker each previously pleaded guilty to conspiracy to defraud the government and one count of aggravated identity theft, 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 today.
According to court documents and statements made in court, between January 2011 and December 2013, Alexander, Walker and their co-conspirators used stolen identities to file more than 900 false tax returns that requested approximately $3.4 million in tax refunds. Alexander obtained stolen identities from various sources, including the identities of employees from a company in Columbus. In order to file the false tax returns, Alexander, Walker and their co-conspirators applied for and obtained several Electronic Filing Numbers (EFINs) from the Internal Revenue Service (IRS) in the names of sham tax businesses. The tax refunds claimed on the false returns were paid via U.S. Treasury checks mailed to addresses under the control of participants in the scheme, prepaid debit cards issued by financial institutions, and deposits to financial institutions connected to the business EFINs that allowed participants in the scheme to print refund checks. Walker and his co-conspirators cashed the fraudulent refund checks at several businesses located in Alabama and Walker deposited fraudulent refund checks into a bank account he controlled.
“One of the Tax Division’s highest priorities is prosecuting individuals such as Charnesha Alexander, Robert Walker and their co-conspirators, who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo. “This street crime threatens the very fabric of tax administration and often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and punish the offenders who view the Federal Treasury as their own personal bank account.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler, Charles M. Edgar Jr. and Gregory P. Bailey of the Tax Division, who prosecuted the case with the assistance of Assistant U.S. Attorney Todd A. Brown of the Middle District of Alabama. Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Alan Tikal Sentenciado A 24 Anos De Prision Por Liderar Un Fraude Masivo De Rescate De Ejecucion HipotecariaRead the Press Release
SACRAMENTO, Calif. — Benjamin B. Wagner, procurador federal del Distrito Oriental de California, informó que el Juez de Distrito Federal de los Estados Unidos, Troy L. Nunley, sentenció a Alan David Tikal de 46 años, anterior residente de Brentwood, California, a cumplir una condena de 24 años de prisión luego de declararlo culpable de once cargos de fraude por correo y un cargo de fraude por correo relacionado con la estafa de rescate de ejecución hipotecaria. Tikal fue hallado culpable mediante juicio sin jurado ante el Juez Nunley el 15 de septiembre de 2014.
Según las pruebas presentadas durante el juicio, entre el 7 de enero de 2010 y el 20 de agosto de 2013, Tikal lideró una empresa conocida como KATN, dirigida a los propietarios de viviendas con problemas financieros y con dificultades para efectuar los pagos mensuales de sus hipotecas. Muchas de sus víctimas no hablaban inglés. Tikal prometió reducir sus deudas hipotecarias pendientes de pago en un 75%, afirmando falsamente ser un banquero privado registrado con acceso a una extensa línea de crédito y con la capacidad de pagar la totalidad de las deudas hipotecarias de los propietarios. Tikal les afirmó a los propietarios de viviendas que, a cambio de diferentes honorarios y pagos, extinguiría las obligaciones relacionadas a sus préstamos vigentes, reduciéndolas a nuevos préstamos con Tikal por montos equivalentes al 25% de su obligación original. Al confiar en las falsas declaraciones efectuadas por Tikal, muchos de estos propietarios dejaron de efectuar los pagos de sus préstamos hipotecarios vigentes y en consecuencia perdieron sus viviendas por ejecución hipotecaria.
De hecho, Tikal, nunca efectuó pago alguno a ninguna institución financiera en representación de los propietarios para cumplir con las obligaciones de sus deudas hipotecarias pre-existentes, sino que sencillamente, el mismo Tikal, sus familiares y asociados gastaron los supuestos pagos del "préstamo" para su uso personal y no hubo ni una sola instancia en la cual se pagara, condonara o extinguiera de otro modo la deuda de los propietarios como resultado del programa de asistencia hipotecaria. En total, Tikal y sus asociados convencieron a màs de 1,000 propietarios de viviendas en California y en otros estados a participar en el programa. Como resultado de su participación, muchos de los propietarios cayeron en mora debido a la falta de pago de sus préstamos y finalmente perdieron sus viviendas por ejecución hipotecaria. Dichos propietarios pagaron màs de $5,800,000 por honorarios y pagos mensuales para el programa. De ese monto, al menos $2,500,000 de los pagos efectuados se depositaron en cuentas que controlaba Tikal y/o su familia.
Al pronunciar la sentencia de Tikal, el Juez Nunley se refirió a las víctimas que, a consecuencia del fraude de Tikal, "no pueden residir en las viviendas que tenían, las cuales en algunos casos, trataron de pagar durante toda la vida." El Juez Nunley dijo que Tikal es "el cerebro detràs de toda esta conspiración" y que se merece la sentencia que recibió.
"La crisis financiera que golpeó tan fuerte a nuestras comunidades hizo que para muchos fuera muy difícil pagar todas las cuentas," dijo el procurador federal del Distrito Oriental de California, Wagner. "Alan Tikal se aprovechó de forma cínica de la desesperación de estas personas para sacar ganancias, robando los pagos que estaban destinados a preservar los hogares de estas familias. A pesar de que no podemos reparar el daño que Tikal ha ocasionado, la sentencia que se impone hoy brinda una medida de justicia."
"Las acciones de Alan Tikal fueron ilegales y no se toleraràn en California. Él y sus socios estafaron a cientos de trabajadores diligentes de California que luchaban para conservar sus hogares durante la crisis de las ejecuciones hipotecarias en nuestro estado," dijo la procuradora general del California, Kamela Harris. "Esta conspiración depredadora les robó los ahorros de toda una vida a muchas familias, y en muchos casos, sus viviendas. Le agradezco a nuestra Fuerza de Ataque contra el Fraude Hipotecario de California y al Departamento de Justicia de los Estados Unidos por su trabajo al hacer posible el enjuiciamiento de estos individuos."
"El acusado abusó de los propietarios desesperados y atrapados por la crisis financiera que buscaban una forma de permanecer en sus hogares", dijo José M. Martínez, Agente Especial en Jefe del Departamento de Investigación Delictiva del IRS (IRS-CI, por sus siglas en inglés). "En lugar de efectuar pagos a los bancos, los acusados se quedaban con el dinero. Tikal llevaba un lujoso estilo de vida que incluía automóviles nuevos, vuelos en aviones privados alquilados y un traje de $5,000. Aunque esta sentencia no puede revertir el daño que causó el Sr. Tikal y sus co-acusados, se destaca el constante compromiso del IRS-CI al hacer responsables a los involucrados en este tipo de delitos.
“Hoy se hizo justicia al sentenciar a Tikal a 24 años en la prisión federal por estafar a los propietarios con dificultades financieras por millones de dólares, ocasionando la ejecución hipotecaria de sus viviendas y destruyendo sus vidas," dijo Christy Romero, Inspectora General Especial para TARP (SIGTARP). "La elocuencia de Tikal y sus promesas llamativas atrajeron a las víctimas, muchas de las cuales no hablaban inglés y sencillamente tenían la esperanza de salvar sus hogares de la ejecución hipotecaria, pero las palabras de Tikal eran tan solo mentiras y artimañas disfrazadas de sofisticación financiera. La arrogancia de Tikal fue suprema al darle a su plan el nombre ‘KATN Trust, (Kicking Ass, Taking Names),’ acrónimo en inglés que significa ganarlo todo, tomando nombres; e incluso luego de que se le acusara y arrestara, continuó con su estafa desde su celda en la càrcel con la ayuda de sus conspiradores asociados. La sentencia impuesta hoy es una advertencia para quienquiera que considere la posibilidad de llevar a cabo o que esté involucrado en un plan para estafar a propietarios con dificultades financieras y un recordatorio de la seriedad y gravedad moral de su delito. SIGTARP se mantiene en unión firme con nuestros socios del orden público para llevar ante la justicia ràpidamente a todos aquellos que cometan un fraude relacionado con el Programa de Alivio de Activos en Problemas (TARP, por sus siglas en inglés).”
Este caso es un proceso conjunto de la Procuraduría Federal para el Distrito Oriental de California y la Procuraduría General de California. Es el resultado de una investigación exhaustiva que realizó la Inspectora General Especial para el Programa de Alivio de Activos en Problemas (SIGTARP), el Departamento de Investigación Delictiva del IRS, el Departamento de Justicia de California y la Procuraduría del Distrito del Condado de Stanislaus. El ayudante del procurador federal para el Distrito Oriental de California, Philip Ferrari, y la Procuradora General Adjunta de California, Maggy Krell, estàn a cargo de procesar el caso.
Se programó una audiencia sobre indemnización para el 26 de marzo de 2016. El co-acusado, Ray Kornfeld, fue sentenciado previamente una condena a 5 años de prisión. La co-acusada Tamara Tikal se declaró culpable previamente y se ha programado su pronunciación de sentencia por Juez Nunley para el 23 de abril de 2015.
United States Assists Korean Authorities in Recovering over $28.7 Million in Corruption Proceeds of Former President of the Republic of KoreaRead the Press Release
The Department of Justice has reached a settlement of its civil forfeiture cases against $1.2 million in assets in the United States traceable to corruption proceeds accumulated by Chun Doo Hwan, the former president of the Republic of Korea. The department also assisted the government of the Republic of Korea in recovering an additional $27.5 million in satisfaction of an outstanding criminal restitution order against former President Chun.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Director Sarah R. Saldaña of U.S. Immigration and Customs Enforcement (ICE) and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Field Office made the announcement after the settlement was signed and papers requesting that the court execute the agreement were filed with the U.S. District Court for the Central District of California.
“Chun Doo Hwan’s campaign of corruption and bribery while serving as Korea’s president betrayed the trust of the Korean people, deprived Korea’s government of precious resources and undermined the rule of law,” said Assistant Attorney General Caldwell. “Fighting corruption is a global imperative that demands a coordinated global response. The close cooperation between the United States and Korea in successfully recovering corruption proceeds stands as a testament to our resolve to battle the scourge of corruption through international collaboration.”
“Former Korean President Chun violated the trust of the people of Korea,” said Director Saldaña. “The results in this case reflect the outstanding international cooperation that exists between U.S. law enforcement and the government of Korea.”
"The U.S. will not idly standby and serve as a money laundering haven for foreign officials to hide corrupt activities,” said Assistant Director in Charge David Bowdich. “The FBI will continue to collaborate with our foreign partners by leveraging its resources in order to identify those engaged in foreign corruption and to recover their ill-gotten gains.”
According to court documents, President Chun was convicted in Korea in 1997 of receiving more than $200 million in bribes from Korean businesses and companies. President Chun and his relatives laundered some of these corruption proceeds through a web of nominees, trusts and shell companies in both Korea and the United States.
Under the terms of the U.S. settlement, $1,116,951.45 in assets will be forfeited to the United States. During the joint U.S.-Korean investigation, approximately $27.5 million in additional funds were paid by an associate of former President Chun to the Korean government to partially settle the judgment entered against former President Chun upon his criminal conviction. Including the settlement announced today, the U.S. and Korean authorities have recovered more than $28.7 million in connection with Korea’s investigation and prosecution of former President Chun.
The investigation was conducted jointly by the FBI’s West Covina Resident Agency of the Los Angeles Division, ICE’s Homeland Security Investigations’ (HSI) Philadelphia Office, HSI's Attaché in Seoul, South Korea and the FBI Kleptocracy Program of the International Corruption Unit within the Criminal Investigation Division. The case is being prosecuted by Trial Attorneys Woo S. Lee and Della Sentilles of the Criminal Division’s Asset Forfeiture and Money Laundering Section, Assistant U.S. Attorneys Katharine Schonbachler and Steven R. Welk of the Central District of California, and Assistant U.S. Attorneys Joseph Minni and Alvin Stout of the Eastern District of Pennsylvania. The Criminal Division’s Office of International Affairs provided substantial support.
The department is grateful for the significant assistance provided by the Seoul Central District Public Prosecutor’s Office, Korea’s Supreme Prosecutor’s Office - Anti-Corruption Supervisory Division and the Ministry of Justice’s International Criminal Affairs Division in investigating and forfeiting these corruption proceeds.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Chun Executed Agreement
Chun Notice of Settlement
Two Connecticut Men Sentenced to Federal Prison for Scheme to Bribe FBI Agent in New YorkRead the Press Release
Two Connecticut-area men were sentenced to federal prison today for their roles in a bribery scheme to obtain confidential, internal law enforcement documents and information from a former FBI Special Agent in White Plains, New York.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York and Justice Department Inspector General Michael E. Horowitz made the announcement. The sentences were imposed by U.S. District Judge Vincent L. Briccetti of the Southern District of New York.
Rizve Ahmed, aka “Caesar,” 36, of Danbury, Connecticut, and Johannes Thaler, 51, of New Fairfield, Connecticut, were sentenced to 42 months in prison and 30 months in prison, respectively. In October 2014, both defendants pleaded guilty to bribery and conspiracy to commit wire fraud and honest services fraud.
In pleading guilty, Thaler and Ahmed admitted that, from September 2011 through March 2012, Thaler and FBI Special Agent Robert Lustyik solicited payments from Ahmed, in exchange for Lustyik’s agreement to provide internal, confidential documents and other confidential information to which Lustyik had access by virtue of his position as an FBI Special Agent. Thaler was Lustyik’s friend, and Ahmed, a native of Bangladesh, was an acquaintance of Thaler. The confidential documents and information pertained to a prominent citizen of Bangladesh who was affiliated with a political party opposing Ahmed’s views. Ahmed requested the confidential information to help him locate and harm his political rival and others associated with the intended victim.
As part of the scheme, Lustyik and Thaler exchanged text messages about how to pressure Ahmed to pay them additional money in exchange for confidential information. For example, in text messages, Lustyik told Thaler, “we need to push [Ahmed] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.” Thaler responded, “I know. It’s all right there in front of us. Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .”
Additionally, in late January 2012, Lustyik learned that Ahmed was considering using a different source to obtain confidential information. In response, Lustyik sent a text message to Thaler stating, “I want to kill C [Ahmed] . . . . I hung my ass out the window n we got nothing? . . . . Tell [Ahmed], I’ve got [the victim’s] number and I’m pissed. . . . I will put a wire on n get [Ahmed and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to [the victim].” Lustyik further stated, “So bottom line. I need ten gs asap. We gotta squeeze C.”
Lustyik pleaded guilty on Dec. 23, 2014, to all five counts against him in the indictment: conspiracy to engage in a bribery scheme; soliciting bribes by a public official; conspiracy to defraud the citizens of the U.S. and the FBI; theft of government property; and unauthorized disclosure of a Suspicious Activity Report. He is scheduled to be sentenced by Judge Briccetti on April 30, 2015, at 9:30 a.m.
The case was investigated by the Department of Justice Office of the Inspector General, and prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Benjamin Allee of the Southern District of New York.
Seven Individuals Indicted in Multimillion-Dollar Business Opportunity Fraud ScamRead the Press Release
Scheme Victimized More Than 1,000 Individuals throughout the United States
The Justice Department announced today the unsealing of an indictment charging seven individuals in connection with a vending machine “business opportunity” that defrauded thousands of victims across the country. The indictment was returned by a federal grand jury in New York City. The following individuals were named as defendants in the indictment:
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Kenneth Levin, 68, of New York City, Founder and President
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Taylor Levin, 33, of New York City, Manager and Sales Representative
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Sears Hobbs, 51, of New York City, Sales Representative
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James Conley, 58, of Brooklyn, New York, Sales Representative
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Marcel Harris, 51, of Brooklyn, Sales Representative
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Steve Friedman, 78, of New York City, Sales Representative
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Jonathan Campbell, 76, of New York City, Sales Representative
Each of the defendants is charged with conspiracy to commit mail and wire fraud, mail fraud, and wire fraud. Each charge carries a statutory maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
The indictment alleges that Kenneth Levin, Taylor Levin and their sales representatives made material misrepresentations about the profits customers would make from vending machines and the locations customers would receive for vending machines. As part of the purported business opportunity package, they offered to sell to customers vending machines for which pre-established, high-profit locations were already identified, and to connect customers with experienced “locators,” who would facilitate placing the vending machines in those pre-determined locations. They further promised to provide training and ongoing customer assistance in how to operate a successful vending machine business and assured customers that they would earn significant profits from the vending machines in a relatively short period of time.
The defendants are also alleged to have misled prospective customers about the profits customers could earn from the machines. They assured prospective customers that they would earn significant profits from the vending machines in a relatively short period of time. Several of the defendants also misled customers into believing that the defendants personally owned vending machines which were profitable. They made these assertions knowing that there were scores of dissatisfied customers who, rather than making any profit, had lost their entire investment. Through their scheme, the business opportunity companies obtained nearly $9 million from more than 1,300 customers throughout the United States.
“Business opportunity fraud insidiously targets Americans in search of a better future for their families,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Instead of becoming successful entrepreneurs, customers become victims, and often lose their life’s savings.”
“As alleged, the defendants preyed on prospective customers by inventing facts and making false promises to make a proposed vending machine ‘business opportunity’ appear more attractive,” said U.S. Attorney Preet Bharara of the Southern District of New York. “As I have noted before, we are taking a close look at fraud that targets consumers and we will aggressively prosecute such conduct wherever we find it.”
“These arrests occurring during National Consumer Protection Week offer a great opportunity for us to highlight our message of fraud prevention,” said Inspector in Charge Ronald J. Verrochio of the U.S. Postal Inspection Service (USPIS) Miami Office. “We will continue to investigate these frauds however; consumers need to protect themselves from these frauds by proceeding carefully when investing their money.”
The indictment states that during the conspiracy, the Levins and their sales representatives encouraged prospective customers to contact locating companies to verify that the routes were available. The operators of locating companies were directed to echo the false statements made to customers and affirm that high-traffic, and therefore profitable, locations had already been found and were waiting in the prospective customers’ respective geographic areas.
The indictment alleges that, in reality, the locating companies who worked with the business opportunity company did not have high-traffic locations or routes waiting in the prospective customer’s area. The locating companies had no special skills, tools or expertise in finding locations and generally placed consumers’ machines wherever they could, often in businesses that had not consented to housing the machines or that soon demanded that the machines be removed. The vending machines generated little business and customers lost nearly all, if not all, of their investments.
Acting Assistant Attorney General Mizer and U.S. Attorney Bharara praised USPIS for their outstanding work in the investigation.
This matter is being handled by the U.S. Attorney’s Office of the Southern District of New York’s Complex Frauds Unit. Assistant U.S. Attorneys Janis Echenberg and Jennifer Beidel of the Southern District of New York and Trial Attorney Jessica Gunder of the Civil Division’s Consumer Protection Branch are prosecuting the case.
The charges contained in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
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Orange County, California, Man Charged in New Indictment with Attempting to Provide Material Support to ISILRead the Press Release
Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Stephanie Yonekura of the Central District of California and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Field Office announced today that an Orange County, California, man who attempted to travel to Syria last year has been indicted on a series of federal offenses, including attempting to provide material support to a designated terrorist organization the Islamic State of Iraq and the Levant (ISIL).
Adam Dandach, 21, of Orange, California, was named in a superseding indictment returned today by a federal grand jury in Santa Ana, California. Dandach, a U.S. citizen, also known as “Fadi Fadi Dandach,” is charged in the indictment with one count of attempting to provide material support and resources to a designated foreign terrorist organization; two counts of making a false statement on a passport application that was obtained in order to facilitate international terrorism; and one count of obstruction of justice for attempting to destroy records after his arrest last July.
Dandach was arrested on July 3, 2014, and initially charged in a federal criminal complaint with making a false statement on his passport application. The complaint alleged that Dandach lied in order to replace his passport so that he could travel without being stopped by a family member who possessed his original passport. At that time, Dandach was attempting to travel from Orange County’s John Wayne Airport to Istanbul with the intention of traveling to Syria. Dandach told FBI agents that he was traveling to Syria for the purpose of pledging his alliance and assistance to ISIL, and that he believed the killings of American soldiers are justified, according to court documents.
On July 16, 2014, Dandach was indicted by a federal grand jury for making false statements on a passport application. He entered a plea of not guilty in July 2014 and has been held in federal custody without bond since that time.
According to the first superseding indictment returned today, Dandach knowingly attempted to provide material support and resources, namely himself, to work under the direction and control of ISIL, also known as the Islamic State of Iraq, al-Qa’ida in Iraq, ISIS, and the Islamic State, according to the indictment, which notes that the ISIL has been continuously designated by the U.S. State Department as a foreign terrorist organization since 2004. The indictment further alleges that Dandach, in order to facilitate an act of international terrorism, lied when applying for a replacement passport and then presented the passport to an airline employee for the purpose of traveling to Istanbul. The indictment further alleges that Dandach attempted to obstruct the investigation by directing another person to instruct a website administrator to delete his post history on that website.
Dandach is scheduled to be arraigned on the indictment on March 16, 2015.
If convicted of all the charges in the indictment, Dandach would face a statutory maximum sentence of 15 years in federal prison for the material support charge, up to 25 years for each of the two passport fraud charges, and a statutory maximum of 25 years for obstruction of justice offense.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
This investigation was conducted by the FBI’s Joint Terrorism Task Force in Orange County. Dandach is being prosecuted by the U.S. Attorney’s Office for the Central District of California, with the assistance of the Counterterrorism Section of the National Security Division.
New York Jewelry Store Owner Pleaded Guilty for Purchasing and Reselling Jewelry Stolen in Armed RobberiesRead the Press Release
A New York jeweler pleaded guilty in federal court in Atlanta yesterday to two counts of interstate transportation of stolen property in connection with jewelry he purchased from an armed robbery ring and then sold in New York.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney John A. Horn of the Northern District of Georgia made the announcement.
Carlos Parra, 64, a resident of New Jersey, pleaded guilty before U.S. District Judge Steve C. Jones of the Northern District of Georgia. Sentencing is scheduled for June 3, 2015.
Parra admitted in court that he was contacted by a member of an armed robbery crew that stole over $100,000 in jewelry from a courier on Jan. 31, 2013. Parra flew from New York, where his jewelry business was based, to Atlanta to purchase the jewelry from the robbery crew for approximately $16,000. Parra admitted that he had dealt with these robbers or their associates in the past and knew the jewelry was stolen.
Parra further admitted to purchasing jewelry from a robbery crew in Houston in August 2012. In that instance, the robbery crew stole over $500,000 from a jewelry courier during an armed robbery on Aug. 27, 2012. Parra admitted that he flew to Texas to purchase the stolen jewelry at a discounted rate because it was stolen. He later sold the jewelry in New York to wholesalers for a profit.
This case was investigated by the FBI, Immigration and Customs Enforcement and the Gwinnett County Police Department, with assistance from the Dallas Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kim Dammers of the Northern District of Georgia.
Mining Official Pleads Guilty in Alaska to Making Illegal Discharges from the Platinum Creek Mine and for Making False Statements to Federal OfficialsRead the Press Release
A former general manager of the Platinum Creek Mine in Platinum, Alaska, pleaded guilty today to three felony violations of the federal Clean Water Act, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Karen L. Loeffler of the District of Alaska.
Robert Pate, 63, of Spokane, Washington, entered his guilty pleas today in federal court in Anchorage, Alaska. Pate admitted to knowingly discharging wastewater from the Platinum Creek mine into Platinum/Squirrel Creek, without a Clean Water Act Permit, knowingly violating the conditions of XS Platinum Inc.’s Clean Water Act permit for discharges to the Salmon River and falsely reporting to the Alaska Department of Environmental Conservation in the 2010 Annual Report for placer mining at the Platinum Creek Mine that there was “no discharge” during 2010, a statement Pate knew to be false.
Pate was XS Platinum Inc.’s general manager and a senior member of its office staff in Seattle, Washington, from February 2010 to June 2012. According to the plea agreement, Pate documented unpermitted discharges of turbid effluent process water into the Salmon River beginning on July 3, 2010. Turbid process water from the placer mining at the Platinum Creek Mine contained pollutants such as suspended particles and sediments and may have also included waste such as dissolved metals that posed a potential threat to aquatic life. After documenting the first discharges of turbid effluent process water, Pate supervised the construction of a ditch to divert the effluent directly into nearby Squirrel/Platinum Creek, also without a permit. Turbid discharges, which XS Platinum Inc. never reported to regulators as required, continued into the Salmon River for much of the remaining season. When Pate filed XSP’s annual water quality report in January 2011, he falsely wrote that the Platinum Creek Mine had experienced no discharges in 2010. The discharges continued in 2011.
“The defendant had a responsibility to ensure the wastewater at the Platinum Creek Mine was handled safely and responsibly but instead took specific actions that posed serious risks to the environment,” said Assistant Attorney General Cruden. “By pleading guilty, the defendant has admitted responsibility and will be held accountable under our nation's environmental laws.”
“Enforcement of our environmental laws is a priority for federal law enforcement in Alaska,” said U.S. Attorney Loeffler. “It is essential to balance the importance of resource extraction to Alaska with the importance of doing it safely and in accordance with the law and regulations. Mr. Pate’s guilty pleas to federal felonies sends the proper message that there are consequences to illegal actions and we will vigilantly enforce environmental laws.”
“The wastewater produced at Platinum Creek Mine contained pollutants that posed a potential threat to both aquatic life and human health,” said Acting Special Agent in Charge Jay M. Green of the EPA’s Criminal Enforcement Program in Alaska. “As general manager of XS Platinum, the defendant knew first-hand about the discharges of mine wastewater into the Salmon River. Unpermitted discharges of turbidity and suspended solids have a negative impact on the diverse, complex and sensitive ecosystems contained in our Nation’s waters. Today’s plea demonstrates that if companies and their managers skirt environmental laws, EPA will hold them accountable.”
“This guilty plea highlights the importance that mining permittees adhere to the regulations that govern their operations, and how important it is for them to be open and transparent in their reporting obligations,” said State Director Bud Cribley of BLM-Alaska. “BLM continues to support the responsible development of federal public lands where appropriate. We are working closely with our state and federal partners as well as with the current claim owner to bring the Platinum Creek Mine back into production in a manner that will protect the Salmon River and restore it to a functioning condition.”
The Honorable Sharon Gleason set sentencing for Sept. 2, 2015, and will ultimately decide what sentence to impose. According to the plea agreement, the United States will recommend a sentence that will include both imprisonment and home confinement. Pate also agreed to pay a $10,000 fine.
The investigation is being conducted by the U.S. Department of Interior Bureau of Land Management Office of Law Enforcement and Security and the U.S. Environmental Protection Agency Criminal Investigation Division. The case is being prosecuted by First Assistant U.S. Attorney Kevin Feldis of the U.S. Attorney’s Office of the District of Alaska, Trial Attorney Todd S. Mikolop of the U.S. Justice Department’s Environmental Crimes Section and U.S. EPA Regional Criminal Enforcement Counsel Dean Ingemanson.
Memphis Man Pleads Guilty in Connection with Sex Trafficking SchemeRead the Press Release
Defendant Engaged in Conspiracy to Use Threats, Violence and Coercion to Compel Women into Prostitution in New Orleans and Elsewhere
Today, Laquentin Brown, aka “Nino,” 32, originally of Memphis, Tennessee, pleaded guilty to conspiring to engage in sex trafficking of adult victims in New Orleans and elsewhere, announced Acting Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division and United States Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana. Brown also pleaded guilty to one count of transportation for purposes of prostitution.
According to Brown’s admissions in court in the course of his guilty plea hearing and documents filed in the case, Brown—together with co-defendants Granville Robinson, aka “Bear” and “HB”; Duane Phillips, aka “P-nut”; Anthony Ellis, aka “Anthony Deshun Lloyd,” “Animal,” and “AD”; and Christopher Williams, aka “Gutter,” all of whom are from Memphis, Tennessee—conspired to target adult, U.S. citizen women, whom they recruited, groomed, and forced and coerced to engage in prostitution. Brown and his co-defendants maintained control over the women by enforcing rules, including requiring the women to earn a certain amount of money each day and requiring the women to turn over the earnings to the conspirators.
The defendants also enforced rules prohibiting the women from speaking to or looking at another pimp, and some of the co-conspirators took the women’s identification. In addition to requiring the women to prostitute in New Orleans, the co-conspirators on occasion transported the women to other states to engage in prostitution. The co-conspirators enforced the rules and compelled the women’s continued engagement in prostitution for the co-conspirators’ profit by using physical beatings, withholding of food and other punishments.
“These defendants preyed on vulnerable women and cruelly exploited them for profit,” said Acting Assistant Attorney General Gupta. “At the Department of Justice, we will continue to enforce our human trafficking laws to restore the rights, freedom and dignity to victims of this modern-day slavery.”
“These defendants brought vulnerable women to New Orleans to engage in commercial sex trafficking,” said U.S. Attorney Polite. “These crimes often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office is committed to prosecuting individuals who manipulate victims into committing commercial sex acts and profit from this illegal conduct.”
“This investigation and prosecution should serve as a clear reminder to all those individuals engaged in the heinous crime of sex trafficking that the full force of federal law enforcement, across geographical boundaries, will bring them to swift justice,” said Special Agent in Charge Michael Anderson of the FBI’s New Orleans Office.
“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Special Agent in Charge Raymond R. Parmer Jr. of Homeland Security Investigations (HIS) New Orleans. “The results speak for themselves; over the past two years HSI has doubled its number of human trafficking arrests. HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”
At sentencing, Brown faces a maximum of ten years for transporting women for purposes of prostitution, and a maximum of five years for conspiracy to engage in sex trafficking. A sentencing hearing is scheduled for June 17, 2015.
On Oct. 3, 2014, a federal Grand Jury in the Eastern District of Louisiana returned a nine-count indictment charging Robinson, Phillips, Ellis and Williams with conspiring to engage in sex trafficking by force, fraud and coercion. The indictment also charged Robinson, Phillips and Williams with sex trafficking by force, fraud and coercion and with interstate transportation for prostitution. The indictment also charged motel owner Kanubhai Patel, age 73, of Kenner, Louisiana, with benefiting financially from participation in the sex trafficking venture. An indictment is merely a charge and the guilt of the defendants must be proven beyond a reasonable doubt.
On June 25, 2014, Zacchaeus Taylor, aka “Little Z,” “Little Zay,” and “Little 5,” pleaded guilty in connection with the scheme. Taylor is scheduled for trial on April 20, 2015.
The New Orleans Field Offices of the FBI and Department of Homeland Security-Homeland Security Investigations are investigating the case with assistance from the FBI’s Memphis Field Office. This case is being prosecuted by Special Litigation Counsel John Cotton Richmond and Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Human Trafficking Prosecution Unit, and Assistant United States Attorney Julia K. Evans of the Eastern District of Louisiana.
Justice Department Announces Findings of Two Civil Rights Investigations in Ferguson, MissouriRead the Press Release
Justice Department Finds a Pattern of Civil Rights Violations by the Ferguson Police Department
The Justice Department announced the findings of its two civil rights investigations related to Ferguson, Missouri, today. The Justice Department found that the Ferguson Police Department (FPD) engaged in a pattern or practice of conduct that violates the First, Fourth, and 14th Amendments of the Constitution. The Justice Department also announced that the evidence examined in its independent, federal investigation into the fatal shooting of Michael Brown does not support federal civil rights charges against Ferguson Police Officer Darren Wilson.
“As detailed in our report, this investigation found a community that was deeply polarized, and where deep distrust and hostility often characterized interactions between police and area residents,” said Attorney General Eric Holder. “Our investigation showed that Ferguson police officers routinely violate the Fourth Amendment in stopping people without reasonable suspicion, arresting them without probable cause, and using unreasonable force against them. Now that our investigation has reached its conclusion, it is time for Ferguson’s leaders to take immediate, wholesale and structural corrective action. The report we have issued and the steps we have taken are only the beginning of a necessarily resource-intensive and inclusive process to promote reconciliation, to reduce and eliminate bias, and to bridge gaps and build understanding.”
“While the findings in Ferguson are very serious and the list of needed changes is long, the record of the Civil Rights Division’s work with police departments across the country shows that if the Ferguson Police Department truly commits to community policing, it can restore the trust it has lost,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We look forward to working with City Officials and the many communities that make up Ferguson to develop and institute reforms that will focus the Ferguson Police Department on public safety and constitutional policing instead of revenue. Real community policing is possible and ensures that all people are equal before the law, and that law enforcement is seen as a part of, rather than distant from, the communities they serve.”
Attorney General Holder first announced the comprehensive pattern or practice investigation into the Ferguson Police Department after visiting that community in August 2014, and hearing directly from residents about police practices and the lack of trust between FPD and those they are sworn to protect. The investigation focused on the FPD’s use of force, including deadly force; stops, searches and arrests; discriminatory policing; and treatment of detainees inside Ferguson’s city jail by Ferguson police officers.
In the course of its pattern or practice investigation, the Civil Rights Division reviewed more than 35,000 pages of police records; interviewed and met with city, police and court officials, including the FPD’s chief and numerous other officers; conducted hundreds of in-person and telephone interviews, as well as participated in meetings with community members and groups; observed Ferguson Municipal Court sessions, and; analyzed FPD’s data on stops, searches and arrests. It found that the combination of Ferguson’s focus on generating revenue over public safety, along with racial bias, has a profound effect on the FPD’s police and court practices, resulting in conduct that routinely violates the Constitution and federal law. The department also found that these patterns created a lack of trust between the FPD and significant portions of Ferguson’s residents, especially African Americans.
The department found that the FPD has a pattern or practice of:
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Conducting stops without reasonable suspicion and arrests without probable cause in violation of the Fourth Amendment;
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Interfering with the right to free expression in violation of the First Amendment; and
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Using unreasonable force in violation of the Fourth Amendment.
The department found that Ferguson Municipal Court has a pattern or practice of:
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Focusing on revenue over public safety, leading to court practices that violate the 14th Amendment’s due process and equal protection requirements.
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Court practices exacerbating the harm of Ferguson’s unconstitutional police practices and imposing particular hardship upon Ferguson’s most vulnerable residents, especially upon those living in or near poverty.Minor offenses can generate crippling debts, result in jail time because of an inability to pay and result in the loss of a driver’s license, employment, or housing.
The department found a pattern or practice of racial bias in both the FPD and municipal court:
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The harms of Ferguson’s police and court practices are borne disproportionately by African Americans and that this disproportionate impact is avoidable.
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Ferguson’s harmful court and police practices are due, at least in part, to intentional discrimination, as demonstrated by direct evidence of racial bias and stereotyping about African Americans by certain Ferguson police and municipal court officials.
The findings are laid out in a 100-page report that discusses the evidence and what remedies should be implemented to end the pattern or practice. The findings include two sets of recommendations, 26 in total, that the Justice Department believes are necessary to correct the unconstitutional FPD and Ferguson Municipal Court practices. The recommendations include: changing policing and court practices so that they are based on public safety instead of revenue; improving training and oversight; changing practices to reduce bias, and; ending an overreliance on arrest warrants as a means of collecting fines.
The Justice Department will require that the recommendations and other measures be part of a court-enforceable remedial process that includes involvement from community stakeholders as well as independent oversight. The Justice Department has provided its investigative report to the FPD and in the coming weeks, the Civil Rights Division will seek to work with the City of Ferguson and the Ferguson community to develop and reach an agreement for reform, using the recommendations in the report as the starting point.
The federal criminal investigation into the fatal shooting of Michael Brown sought to determine whether the evidence from the events that led to Brown’s death was sufficient to prove, beyond a reasonable doubt, that Wilson’s actions violated federal civil rights laws that make it a federal crime for someone acting with law enforcement authority to willfully violate a person’s civil rights. As part of the investigation, federal authorities reviewed physical, ballistic, forensic, and crime scene evidence; medical reports and autopsy reports, including an independent autopsy performed by the U.S. Department of Defense Armed Forces Medical Examiner Service; Wilson’s personnel records; audio and video recordings; internet postings, and; the transcripts from the proceedings before the St. Louis County grand jury. Federal investigators interviewed purported eyewitnesses and other individuals claiming to have relevant information. Federal prosecutors and agents re-interviewed dozens of witnesses to evaluate their accounts and obtain more detailed information. FBI agents independently canvassed more than 300 residences to locate and interview additional witnesses.
The standard of proof is the same for all criminal cases: that the defendant committed the crime beyond a reasonable doubt. However, unlike state laws, federal criminal civil rights statutes do not have the equivalent of manslaughter or a statute that makes negligence a crime. Federal statutes require the government to prove that Officer Wilson used unreasonable force when he shot Michael Brown and that he did so willfully, that is, he shot Brown knowing it was wrong and against the law to do so. After a careful and deliberative review of all of the evidence, the department has determined that the evidence does not establish that Darren Wilson violated the applicable federal criminal civil rights statute. The family of Michael Brown was notified earlier today of the department’s findings.
Due to the high interest in this case, the department took the rare step of publicly releasing the closing memo in the case. The report details, in over 80 pages, the evidence, including evidence from witnesses, the autopsies and physical evidence from the analysis of the DNA, blood, shooting scene and ballistics. The report also explains the law as developed by the federal courts and applies that law to the evidence.
DOJ Report on Shooting of Michael Brown
Ferguson Police Department Report
Pattern and Practice Typography
Pattern and Practice Chart
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California Resident Sentenced to Prison for Tax Evasion Resulting from Multimillion-Dollar Advance Fee Scheme in MarylandRead the Press Release
A Corona, California, woman was sentenced today in the U.S. District Court in the District of Maryland to serve two years in prison to be followed by three years of supervised release after pleading guilty to one count of tax evasion, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Rod J. Rosenstein of the District of Maryland.
Yvette Johnson, formerly of Laytonsville, Maryland, was sentenced by U.S. District Judge Deborah K. Chasanow. As a special condition of Johnson’s supervised release, she is required to cooperate with the Internal Revenue Service (IRS) to determine all taxes owed for tax years 2002 through 2009, and to pay the IRS all additional taxes, interest and penalties.
Johnson’s husband, Shannon Johnson, was sentenced in June 2014 to serve seven years in prison after pleading guilty to an advance fee scheme and tax evasion. The Johnsons were indicted by a federal grand jury in June 2013 for mail and wire fraud charges, as well as tax fraud charges, in connection with a scheme to defraud investors. Shannon Johnson admitted that he ran a fraudulent advance fee scheme from 2006 to 2009, wherein Johnson presented himself as a wealthy international investment banker who could provide millions of dollars and euros in financing to businesses and individuals. In return for substantial advance banking fees, the indictment alleged that the Johnsons promised to provide investors with money which they claimed they held in an overseas bank account. Shannon Johnson provided these businesses and investors with false documents purporting to be from the overseas bank to authenticate the funds. The Johnsons developed relationships with pastors, ministers and religious-based organizations to sell themselves as philanthropists on a humanitarian mission. Shannon Johnson received payments and gifts from pastors and ministers who believed substantial donations would be made to their churches. Businesses and individuals wired and mailed the advance fees to multiple bank accounts controlled by the Johnsons in different states. Yvette Johnson opened bank accounts and conducted financial transactions using proceeds obtained from the Johnsons’ business activities.
The Johnsons spent the $3.7 million in advance fees from individuals and businesses to support their lifestyle, which the indictment alleges included: the purchase of Bentley, Mercedes Benz and BMW automobiles; the leasing of a residence in California for $18,000 a month; travel on private jets; and the funding of the mortgage on their Laytonsville residence. Shannon Johnson admitted that he obtained $3.7 million by victimizing at least 11 individuals and businesses.
The Johnsons also evaded taxes on millions of dollars in income they earned from the advance fee scheme. They admitted that they filed individual tax returns for tax years 1998 through 2001 using false Forms W-2 to fraudulently generate refund claims, evaded the payment of their 2002 through 2006 corporate and individual taxes totaling $98,220, and evaded the assessment of their 2007 through 2009 taxes. The Johnsons attempted to conceal their income and assets from the IRS by selling assets in their own names, titling assets in the names of nominees, using multiple bank accounts across three states to disperse and conceal income, using nominees and fraudulent taxpayer identification numbers to open and maintain bank accounts, and using multiple business names to conduct business.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rosenstein commended the special agents of IRS-Criminal Investigation and the FBI, who investigated the case, and Assistant Chief John N. Kane of the Tax Division and Assistant U.S. Attorney Thomas Sullivan of the District of Maryland, who prosecuted the case.
Bastrop Woman Pleads Guilty to Filing False Tax ReturnsRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a Bossier City woman pleaded guilty on Tuesday, to filing false tax returns.
Stella Marie Dunlap, 37, of Bastrop, La., entered a conditional guilty plea before U.S. Magistrate Judge Karen L. Hayes, to one count of aiding and subscribing a false tax return. The plea will become final when accepted by U.S. District Judge Robert G. James. According to evidence presented at the guilty plea, Dunlap filed fraudulent Forms 1040 during the 2010 and 2011 tax filing seasons while employed as a tax preparer at Faster Tax Services in Bastrop. The returns contained fraudulent W-2 income information from fictitious companies, and the information was used to file Earned Income Tax Credit withholdings. As a result of the fraud, the IRS issued $104,401 in refunds to which taxpayers where not entitled. Dunlap received kickbacks from some of customers as part of the scheme.
Dunlap faces up to three years in prison, one year of supervised release, a $250,000 fine, and restitution. A sentencing date of June 15, 2015 was set.
Internal Revenue Service - Criminal Investigations conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
Al-Qaeda Operative Convicted for Role in International Terrorism Plot Targeting the United States and EuropeRead the Press Release
Defendant and Co-Plotters Came Within Days of Bombing a U.K. Shopping Mall
U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD) announced that earlier today, following a two-week trial, Abid Naseer, 28, a Pakistani national who joined al-Qaeda and plotted to commit a terrorist attack in the United Kingdom, was found guilty by a jury in Brooklyn federal court of providing material support to al-Qaeda, conspiring to provide material support to al-Qaeda, and conspiring to use a destructive device in relation to a crime of violence. The evidence at trial established that the defendant and his accomplices came within days of executing a plot to conduct an attack on a busy shopping mall located in the city center of Manchester, United Kingdom, in April 2009. The planned attack, which also targeted the New York City subway system and a newspaper office in Copenhagen, Denmark, had been directed by and coordinated with senior al-Qaeda leaders in Pakistan. Naseer is the eighth defendant to face charges, and the fourth to be convicted, in Brooklyn federal court related to the al-Qaeda plot, which also involved Adis Medunjanin, Najibullah Zazi, and Zarein Ahmedzay, the three members of the cell that targeted New York City.
“This al-Qaeda plot was intended by the group’s leaders to send a message to the United States and its allies,” said U.S. Attorney Lynch. “Today’s verdict sends an even more powerful message in response: the United States will stop at nothing in order to hold those who plot to kill and maim in the name of religion accountable for their grievous crimes.” U.S. Attorney Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force, which led the investigation and comprises a large number of federal, state, and local agencies from the region. U.S. Attorney Lynch also extended her appreciation to the law enforcement authorities in the United Kingdom and Norway, including the Greater Manchester Police, the British Security Service, and the Norwegian Police Security Service, for their outstanding assistance with the case.
“Abid Naseer was part of an al Qaeda conspiracy that targeted Western countries, including the United States and the United Kingdom, for terrorist attack,” said Assistant Attorney General Carlin. “His conviction reflects our dedication to identifying and holding accountable those who seek to target the United States and its allies. I want to thank the many agents, analysts, and prosecutors who are responsible for this successful result.”
“Naseer knowingly and willingly conspired with others to carry out a destructive plot on behalf of al-Qaeda,” said FBI Assistant Director in Charge Rodriquez. “The wheels were set in motion, and he and his accomplices were prepared to execute their plan. Those who pledge allegiance to terrorists and terrorist organizations throughout the world will be brought to justice, and every effort will be made to protect Americans and our interests throughout the world. The FBI will continue to work with our local and international partners to mitigate the threat of global terrorism.”
“The Abid Naseer case demonstrates that terrorists who target the U.S. and its allies will be brought to justice, no matter where they are,” said NYPD Commissioner Bratton. “This investigation involved leads from the streets of Manchester, England, to New York City, to Usama Bin Laden’s hidden lair in Pakistan. I want to thank the U.S. Attorney for the Eastern District and the members of the N.Y. FBI-NYPD Joint Terrorism Task Force for the work that led to this successful prosecution.”
In approximately September 2008, al-Qaeda leaders in Pakistan recruited Medunjanin, Zazi, and Ahmedzay, three friends from New York City, to conduct a suicide bombing attack in New York City. Those al-Qaeda leaders, including Adnan El-Shukrijumah and Saleh al-Somali, communicated with Zazi about the plot through an al-Qaeda facilitator named “Ahmad,” who was located in Peshawar, Pakistan. In early September 2009, after Medunjanin, Zazi, and Ahmedzay had selected the New York City subway system as their target, Zazi emailed with “Ahmad” in Pakistan about the proper ingredients for the main charge explosive, which included flour and oil. Zazi pleaded guilty to his role in the plot on Feb. 22, 2010; Ahmedzay pleaded guilty on April 23, 2010; and Medunjanin was convicted after trial on May 1, 2012.
The investigation by authorities in the United States and United Kingdom revealed that “Ahmad” had also been communicating with the defendant earlier in 2009. The evidence at trial demonstrated that the defendant and his Pakistani accomplices had been dispatched by al-Qaeda to the U.K. in 2006 in order to begin preparations for an attack in that country. The defendant and his co-conspirators entered the U.K. on student visas but then immediately dropped out of the university in which they had enrolled. The defendant, like Zazi, returned briefly to Peshawar in November 2008, at the same time Zazi and his co-conspirators were receiving weapons and explosives training from al-Qaeda in that region. After returning to the U.K., the defendant sent messages back and forth to the same email account that “Ahmad” was also using to communicate with the American-based al-Qaeda cell on behalf of Saleh al-Somali, al-Qaeda’s then-head of external operations. In the messages, the defendant used coded language to refer to different types of explosives. At the culmination of the plot, in early April 2009, the defendant told “Ahmad” that he was planning a large “wedding” for numerous guests during the upcoming Easter weekend, and that “Ahmad” – whom he called “Sohaib” – should be ready. Notably, Zazi testified that Ahmad had instructed him to use the same code of “marriage” to refer to the planned attack on the New York City subway, and that Zazi emailed Ahmad that “the marriage is ready” just before he drove to New York in early September 2009 to conduct the attack.
On April 8, 2009, the defendant and several associates were arrested in the United Kingdom. In connection with these arrests, U.K. authorities conducted searches of the plotters’ homes as well as an internet café used by the defendant to send his messages to Ahmad, where they seized a large volume of electronic media. As demonstrated at trial, a forensic review of that electronic media revealed that the defendant had downloaded several jihadi nasheeds, or anthems, calling for “death in large numbers.” A document recovered from the raid on Usama bin Laden’s compound in May 2011 contained a letter from Saleh al-Somali to Bin Laden, written on April 16, 2009, that discussed the defendant and his accomplices’ arrests in the U.K.
On Jan. 30, 2012, three defendants were also convicted in a Norwegian court of plotting a similar terrorist attack in Denmark as part of the same overall multinational al-Qaeda conspiracy. During that trial, the United States made available to the Norwegian prosecutors three witnesses who also pleaded guilty to terrorism offenses in the Eastern District of New York: Zazi, Ahmedzay, and Bryant Neal Vinas. Zazi and Ahmedzay again testified in the trial against Naseer.
The defendant faces up to life imprisonment when he is sentenced at a later date by the Honorable Raymond J. Dearie.
The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad, Celia A. Cohen, and Michael P. Canty, with assistance provided by the Justice Department’s National Security Division and Office of International Affairs.
U.S. Trustee Program Reaches $50 Million Settlement with JPMorgan Chase to Protect Homeowners in BankruptcyRead the Press Release
Settlement Addresses Robo-Signing and Other Improper Practices in Bankruptcy Cases
The Department of Justice’s U.S. Trustee Program (USTP) has entered into a national settlement agreement with JPMorgan Chase Bank N.A. (Chase) requiring Chase to pay more than $50 million, including cash payments, mortgage loan credits and loan forgiveness, to over 25,000 homeowners who are or were in bankruptcy. Chase will also change internal operations and submit to oversight by an independent compliance reviewer. The proposed settlement has been filed in the U.S. Bankruptcy Court for the Eastern District of Michigan, where it is subject to court approval.
In the proposed settlement, Chase acknowledges that it filed in bankruptcy courts around the country more than 50,000 payment change notices that were improperly signed, under penalty of perjury, by persons who had not reviewed the accuracy of the notices. More than 25,000 notices were signed in the names of former employees or of employees who had nothing to do with reviewing the accuracy of the filings. The rest of the notices were signed by individuals employed by a third party vendor on matters unrelated to checking the accuracy of the filings.
Chase also acknowledges that it failed to file timely, accurate notices of mortgage payment changes and failed to provide timely, accurate escrow statements.
“It is shocking that the conduct admitted to by Chase in this settlement, including the filing of tens of thousands of documents in court that never had been reviewed by the people who attested to their accuracy, continued as long as it did,” said Acting Associate Attorney General Stuart F. Delery. “Such unlawful and abusive banking practices can deprive American homeowners of a fair chance in the bankruptcy system, and we will not tolerate them.”
“This settlement should signal once again to banks and mortgage servicers that they cannot continue to flout legal requirements, compromise the integrity of the bankruptcy system and abuse their customers in financial distress,” said Director Cliff White of the U.S. Trustee Program. “It should be acknowledged that Chase responded to the U.S. Trustee’s court actions by conducting an internal investigation and taking steps to mitigate harm to homeowners. But years after uncovering improper mortgage servicing practices and entering into court-ordered settlements to fix flawed systems, it is deeply disturbing that a major bank would still make improper court filings and fail to provide adequate and timely notices to homeowners about payments due. Other servicers should take note that the U.S. Trustee Program will continue to police their practices and will work to ensure that those who do not comply with bankruptcy law protections for homeowners will pay a price, just as Chase has done in this matter.”
Payments, Credits and Contributions of More Than $50 Million:
In the proposed settlement, Chase agrees to provide payments, credits and contributions totaling more than $50 million:
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Chase will provide $22.4 million in credits and second lien forgiveness to about 400 homeowners who received inaccurate payment increase notices during their bankruptcy cases.
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Chase will pay $10.8 million to more than 12,000 homeowners in bankruptcy through credits or refunds for payment increases or decreases that were not timely filed in bankruptcy court and noticed to the homeowners.
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Chase will pay $4.8 million to more than 18,000 homeowners who did not receive accurate and timely escrow statements. This includes credits for taxes and insurance owed by the homeowners and paid by Chase during periods covered by escrow statements that were not timely filed and transmitted to homeowners.
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Chase will pay $4.9 million, through payment of approximately $600 per loan, to more than 8,000 homeowners whose escrow payments Chase may have applied in a manner inconsistent with escrow statements it provided to the homeowners.
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Chase will contribute $7.5 million to the American Bankruptcy Institute’s endowment for financial education and support for the Credit Abuse Resistance Education Program.
Changes to Internal Operations: In the proposed settlement Chase also agrees to make necessary changes to its technology, policies, procedures, internal controls and other oversight systems to ensure that the problems identified in the settlement do not recur.
Oversight by Independent Reviewer: Amy Walsh, a partner with the law firm Morvillo LLP, has been selected to serve as independent reviewer to verify that Chase complies with the settlement order. The independent reviewer will file public reports with the bankruptcy court.
No Effect on Additional Relief by Homeowners: This settlement does not affect the rights of any homeowners to seek any relief against Chase that they may deem appropriate.
Chase Contact Information: Homeowners with questions about the settlement may contact Chase at 866-451-2327.
The settlement is the culmination of actions taken by the U.S. Trustee Program in districts around the country concerning Chase’s improper practices in bankruptcy cases, including robo-signing. Director White commended the U.S. Trustee Program team in the field and headquarters who expertly identified, investigated, litigated and settled this matter, including Deputy Director and General Counsel Ramona Elliott, National Creditor Enforcement Coordinator Gail Geiger and Trial Attorneys Diarmuid Gorham and Kelley Callard.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The U.S. Trustee Program has 21 regions and 93 field office locations.
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U.S. Trustee Program Reaches $50 Million Settlement with JPMorgan Chase to Protect Homeowners in BankruptcyRead the Press Release
Settlement Addresses Robo-Signing and Other Improper Practices in Bankruptcy Cases
WASHINGTON – The Department of Justice’s United States Trustee Program (USTP) has entered into a national settlement agreement with JPMorgan Chase Bank, N.A. (Chase) requiring Chase to pay more than $50 million including cash payments, mortgage loan credits and loan forgiveness to over 25,000 homeowners who are or were in bankruptcy. Chase will also change internal operations and submit to oversight by an independent compliance reviewer. The proposed settlement has been filed in the United States Bankruptcy Court for the Eastern District of Michigan, where it is subject to court approval.
In the proposed settlement, Chase acknowledges that it filed in bankruptcy courts around the country more than 50,000 payment change notices that were improperly signed, under penalty of perjury, by persons who had not reviewed the accuracy of the notices. More than 25,000 notices were signed in the names of former employees or of employees who had nothing to do with reviewing the accuracy of the filings. The rest of the notices were signed by individuals employed by a third party vendor on matters unrelated to checking the accuracy of the filings.
Chase also acknowledges that it failed to file timely, accurate notices of mortgage payment changes and failed to provide timely, accurate escrow statements.
“It is shocking that the conduct admitted to by Chase in this settlement, including the filing of tens of thousands of documents in court that never had been reviewed by the people who attested to their accuracy, continued as long as it did,” said Acting Associate Attorney General Stuart F. Delery. “Such unlawful and abusive banking practices can deprive American homeowners of a fair chance in the bankruptcy system, and we will not tolerate them.”
“This settlement should signal once again to banks and mortgage servicers that they cannot continue to flout legal requirements, compromise the integrity of the bankruptcy system and abuse their customers in financial distress,” stated U.S. Trustee Program Director Cliff White. “It should be acknowledged that Chase responded to the U.S. Trustee’s court actions by conducting an internal investigation and taking steps to mitigate harm to homeowners. But years after uncovering improper mortgage servicing practices and entering into court-ordered settlements to fix flawed systems, it is deeply disturbing that a major bank would still make improper court filings and fail to provide adequate and timely notices to homeowners about payments due. Other servicers should take note that the U.S. Trustee Program will continue to police their practices and will work to ensure that those who do not comply with bankruptcy law protections for homeowners will pay a price, just as Chase has done in this matter.”
Payments, Credits and Contributions of More Than $50 Million.
In the proposed settlement, Chase agrees to provide payments, credits and contributions totaling more than $50 million:
- Chase will provide $22.4 million in credits and second lien forgiveness to about 400 homeowners who received inaccurate payment increase notices during their bankruptcy cases.
- Chase will pay $10.8 million to more than 12,000 homeowners in bankruptcy through credits or refunds for payment increases or decreases that were not timely filed in bankruptcy court and noticed to the homeowners.
- Chase will pay $4.8 million to more than 18,000 homeowners who did not receive accurate and timely escrow statements. This includes credits for taxes and insurance owed by the homeowners and paid by Chase during periods covered by escrow statements that were not timely filed and transmitted to homeowners.
- Chase will pay $4.9 million, through payment of approximately $600 per loan, to more than 8,000 homeowners whose escrow payments Chase may have applied in a manner inconsistent with escrow statements it provided to the homeowners.
- Chase will contribute $7.5 million to the American Bankruptcy Institute’s endowment for financial education and support for the Credit Abuse Resistance Education Program.
Changes to Internal Operations. In the proposed settlement Chase also agrees to make necessary changes to its technology, policies, procedures, internal controls and other oversight systems to ensure that the problems identified in the settlement do not recur.
Oversight by Independent Reviewer. Amy Walsh, a partner with the law firm Morvillo LLP, has been selected to serve as independent reviewer to verify that Chase complies with the settlement order. The independent reviewer will file public reports with the bankruptcy court.
No Effect on Additional Relief by Homeowners. This settlement does not affect the rights of any homeowners to seek any relief against Chase that they may deem appropriate.
Chase Contact Information. Homeowners with questions about the settlement may contact Chase at 866-451-2327.
The settlement is the culmination of actions taken by the USTP in districts around the country concerning Chase’s improper practices in bankruptcy cases, including robo-signing. Director White commended the USTP team in the field and headquarters who expertly identified, investigated, litigated and settled this matter, including Deputy Director and General Counsel Ramona Elliott, National Creditor Enforcement Coordinator Gail Geiger and Trial Attorneys Diarmuid Gorham and Kelley Callard.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 93 field office locations.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Order Approving Settlement [PDF 3.96 MB]
Two Former Civilian Military Employees and One Military Contractor Convicted in Bribery Scheme at Georgia Military BaseRead the Press Release
Two former civilian employees at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, and one military contractor were convicted by a federal jury today of bribery and fraud charges related to military trucking contracts, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
Christopher Whitman, 48, co-owner of United Logistics, an Albany-based trucking company and freight transportation broker, was convicted of 43 counts of honest services wire fraud, five counts of bribery, five counts of obstructing justice and one count of theft of government property. Shawn McCarty, 36, of Albany, Georgia, a former employee at the MCLB-Albany, was convicted of 15 counts of honest services wire fraud, one count of bribery and one count of obstructing justice. Bradford Newell, 43, of Sylvester, Georgia, also a former employee at the MCLB-Albany, was convicted of 13 counts of honest services wire fraud, one count of bribery and one count of theft of government property.
According to evidence presented at trial, Whitman paid more than $800,000 in bribes to three former officials of the Defense Logistics Agency (DLA) at the MCLB-Albany, including the head of the DLA Traffic Office and McCarty, to obtain commercial trucking business from the base. The transportation contracts were loaded with unnecessary premium-priced requirements, including expedited service, expensive trailers and exclusive use, which requires that freight be shipped separately from other equipment, even if that results in a truck not being filled to capacity. As a result of these contracts, Whitman’s company grossed more than $37 million over less than four years.
The evidence further demonstrated that Whitman paid approximately $200,000 in bribes to the former inventory control manager of the Distribution Management Center at MCLB-Albany, Newell and others, who used their official positions to help Whitman steal more than $1 million in surplus equipment from the base, including bulldozers, cranes and front-end loaders. In exchange for the bribes, Newell and the inventory control manager removed the surplus items from Marine Corps inventory and arranged to have them transported off the base by Whitman’s company. Whitman then arranged to improve and paint the stolen equipment, and sell it to private purchasers.
One former United Logistics employee, a business partner of Whitman’s, two former DLA officials and another MCLB official previously pleaded guilty for their roles in the fraud and corruption scheme.
The case was investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General, and the Department of Labor Office of the Inspector General. The case is being prosecuted by Deputy Chief J.P. Cooney and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The associated forfeiture litigation is being handled by Assistant Deputy Chief Darrin McCullough of the Asset Forfeiture and Money Laundering Section and the Middle District of Georgia.
Three Florida Men and a Corporation Convicted for Running Illegal International Gambling EnterpriseRead the Press Release
A federal jury in Oklahoma City convicted three Florida men and a Florida corporation today for their participation in an illegal international gambling and money laundering enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Sanford C. Coats of the Western District of Oklahoma.
“In the age of the internet, what used to be a crime conducted by bookies on street corners is now an international criminal enterprise,” said Assistant Attorney General Caldwell. “Operating on-line but off-shore, the individuals convicted in this case raked in more than a billion dollars in illegal gambling proceeds. But as these convictions demonstrate, no matter where or how organized criminals operate, the Criminal Division will bring them to justice.”
“This is a great result in this important case,” said U.S Attorney Coats. “I applaud the tremendous, collaborative efforts of our law enforcement partners and the prosecution team.”
Paul Francis Tucker, 50, of Mount Dora, Florida, Luis Robles, 50, of St. Pete Beach, Florida, and Zapt Electrical Sales Inc., a corporation registered in Florida and owned by Tucker, were found guilty of engaging in a racketeering conspiracy, conducting an illegal gambling business and conspiracy to commit money laundering. Christopher Lee Tanner, 58, of Sarasota, Florida, was found guilty of conducting an illegal gambling ring. A sentencing date will be set by the court in approximately 90 days, and the hearing will take place before U.S. District Judge Stephen P. Friot of the Western District of Oklahoma.
According to evidence presented at trial, from 2003 to 2013, Tanner, Tucker, Robles and Zapt Electrical Sales conspired with others to operate internet and telephone gambling services from Panama City, Panama through an enterprise known as Legendz Sports. The international gambling enterprise took more than $1 billon in illegal wagers, almost exclusively from gamblers in the United States on American sporting events.
The evidence demonstrated that Tanner and Tucker worked as bookies in Florida, and illegally solicited and accepted sports wagers and settled gambling debts. Tucker also used Zapt Electrical Sales and its bank account to launder gambling proceeds collected from losing bettors.
The evidence showed that Robles worked as a runner for the enterprise, delivering cash to Legendz Sports bookies to make payouts and picking up cash profits from the bookies. According to the evidence at trial, bookies and runners for Legendz Sports transported millions of dollars of gambling proceeds in cash and checks from the United States to Panama. The checks were made out to various shell companies created by Legendz Sports all over Central America to launder gambling proceeds.
The case was investigated by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Susan Dickerson Cox and Travis D. Smith of the Western District of Oklahoma.
Statement from the Justice Department on the Criminal Charges Against David PetraeusRead the Press Release
Justice Department Spokesman Marc Raimondi released the following statement Tuesday:
“Three documents – a criminal Information, a plea agreement, and a statement of facts – were filed today in the United States District Court for the Western District of North Carolina’s Charlotte Division in the case of United States v. David Howell Petraeus. The criminal Information charges the defendant with one count of unauthorized removal and retention of classified material, in violation of 18 U.S.C. § 1924. The plea agreement and corresponding statement of facts, both signed by the defendant, indicate that he will plead guilty to the one-count criminal Information."
Petraeus Plea Agreement
Petraeus Factual Basis
Petraeus Bill of Information
Pastor, Alleged Sexual Predator on Marshals' 15 Most Wanted List CapturedRead the Press Release
After only three months on the U.S. Marshals 15 Most Wanted fugitive list, self-proclaimed pastor and accused sexual predator Victor Arden Barnard was arrested Friday, February 27, in Pipa, Brazil. Barnard, 53, is wanted by the Pine County Sheriff’s Office in Pine City, Minnesota, for 59 felony counts of criminal sexual assault stemming from allegations that he sexually abused young girls while acting as their pastor. The U.S. Marshals joined the manhunt for Barnard in April 2014.
The manhunt for Barnard gained momentum when U.S. Marshals developed significant information leading them to believe he was either in Brazil or receiving assistance from his followers there. After a lengthy and thorough investigation, Barnard was located and arrested by Brazilian law enforcement authorities.
The efforts of the Pine County Sheriff’s Office, U.S. Department of Justice, Office of International Affairs, the U.S. Department of State’s Diplomatic Security Service, Interpol Washington, and U.S. Marshals Service all contributed to the successful arrest of Barnard.
Barnard is being held in Brazil pending extradition back to the U.S.
New York Man Pleads Guilty to Emailing Death Threats to an Employee of an American Islamic OrganizationRead the Press Release
Bernhard Laufer, 58, a resident of Rego Park, Queens, New York, pleaded guilty yesterday in federal court in the Eastern District of New York, to sending threatening communications from New York to an employee of the Council on American Islamic Relations (CAIR) located in Washington, D.C. CAIR is a civil rights and advocacy group with offices nationwide.
According to documents filed with the court and statements made during the guilty plea hearing, Laufer admitted that he sent threatening communications to the employee of CAIR in June 2014. These communications threatened the employee with significant bodily harm and death.
"Those who make violent threats to others because of race, religion or national origin must be held accountable,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Justice Department is committed to vigorously prosecuting those who engage in such conduct.”
Laufer faces a maximum sentence of five years imprisonment.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Roy Conn of the Justice Department’s Civil Rights Division and Assistant United States Attorney Hiral Mehta for the Eastern District of New York.
Justice Department and Equal Employment Opportunity Commission Sign Memorandum of Understanding to Further the Goals of Title VII of the Civil Rights Act of 1964 in Prohibiting Employment Discrimination in State and Local GovernmentsRead the Press Release
The U.S. Equal Employment Opportunity Commission (EEOC) and the U.S. Department of Justice’s (DOJ) Civil Rights Division yesterday signed a new Memorandum of Understanding (MOU) to further the goals of Title VII of the Civil Rights Act of 1964 in prohibiting employment discrimination in the state and local government sector. The signing ceremony took place on Monday, March 2, at DOJ’s headquarters in Washington, D.C., and included remarks from Assistant Attorney General Vanita Gupta of the Civil Rights Division and EEOC Chair Jenny Yang.
EEOC and DOJ share enforcement authority for public sector employers under Title VII. The EEOC receives, investigates and mediates charges of discrimination against public employers. Where the EEOC finds reasonable cause to believe an unlawful employment practice has occurred, the agency works with the employer to negotiate a mutually agreeable resolution to the charge. If conciliation of a charge fails, the EEOC refers the charge and its investigative file to DOJ, which has sole authority within the federal government to file a lawsuit against public employers under Title VII.
The MOU includes provisions for the coordination of the investigation of charges of discrimination on the basis of any characteristic protected by Title VII, while respecting the distinct responsibilities and enforcement priorities of each agency. Further, the MOU includes provisions for sharing information, as appropriate and to the extent allowable under law.
This MOU codifies a pilot project launched in 2009 by DOJ and EEOC. The pilot, which began with four of EEOC’s district offices, has been expanded over the years and now includes the Chicago, Indianapolis, Los Angeles, New York, Philadelphia and San Francisco District Offices, as well as the Washington, D.C. Field Office, among others. Over the years, the pilot has served to enhance the effectiveness of the nation’s equal employment opportunity enforcement program in the public sector, ensuring the efficient use of resources and a consistent enforcement strategy.
“The MOU brings to life our vision to approach our shared Title VII enforcement responsibilities as a partnership,” said Acting Assistant Attorney General Gupta. “It institutionalizes that partnership and provides a concrete framework for expanding our collaborations and increasing our effectiveness in protecting the employment rights of public sector workers.”
“Our state and local governments provide essential services that affect all of us every day in every part of our lives,” said EEOC Chair Yang. “One of the greatest tools that our public institutions have for inspiring trust and credibility in our communities is to ensure that all public employees enjoy equal opportunity at work. That is the significance of the MOU we sign today.”
There have been several successful examples of the existing partnership between EEOC and DOJ, including the settlement of Murphy-Taylor v. State of Maryland, et al., a sexual harassment and retaliation lawsuit involving the Queen Anne’s County Sheriff, in which the United States intervened; the settlement with the Board of Education, Berkeley School District 87, Cook County, Illinois, over religious accommodation discrimination; and a settlement with Clark County, Nevada, for wage discrimination and retaliation against an African-American female manager resulting in $179,000 in monetary relief.
The MOU is just one example of the enforcement partnership between the EEOC and DOJ. The agencies collaborate on several interagency taskforces and working groups, including the Federal Interagency Reentry Council, the National Equal Pay Enforcement Taskforce, the Curb Cuts to the Middle Class Initiative, the Task Force to Monitor and Combat Human Trafficking, the Interagency Working Group for the Consistent Enforcement of Federal Labor, Employment and Immigration Laws, and most recently an interagency working group on police force diversity.
The MOU and information about Title VII and other federal employment laws is available on the Employment Litigation Section of the Civil Rights Division’s website or the U.S. Equal Employment Opportunity Commission’s website.
Defendant from United Kingdom Extradited for Providing Material Support to and Receiving Military Training from Al Qaeda in the Arabian PeninsulaRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara for the Southern District of New York and Assistant Director-in-Charge Andrew G. McCabe of the FBI’s Washington, D.C. Office announced today the extradition of Minh Quang Pham, aka “Amin,” from the United Kingdom. Pham, a Vietnamese national, was indicted in 2012 on charges of providing material support to, and receiving military training from, al Qaeda in the Arabian Peninsula (AQAP), a designated foreign terrorist organization, as well as possessing and using a firearm in furtherance of crimes of violence, and other violations. Pham was presented yesterday before U.S. Magistrate Judge Andrew J. Peck, and will be arraigned tomorrow, March 4, 2015, before U.S. District Judge Alison J. Nathan.
“As alleged, Minh Quang Pham surreptitiously traveled from the UK to Yemen in late 2010 and received terrorist training by AQAP,” said U.S. Attorney Bharara. “During the half year he spent in Yemen, Pham allegedly vowed to wage jihad, swore bayat, and provided material support to high-level AQAP members, almost always brandishing a Kalashnikov rifle. Through the vigilance and investigative efforts of our British partners and the FBI, Pham is now in the U.S. to face American justice.”
“Today’s material support charges outline that Minh Quang Pham received military-style training and possessed weapons to commit crimes of violence on behalf of al Qaeda in the Arabian Peninsula,” said Assistant Director in Charge McCabe. “This investigation and subsequent extradition of Pham from the UK speaks to the level of commitment of the FBI and our national and international law enforcement and intelligence community partners to bring this dangerous terrorist to face justice in the United States."
According to the Indictment and extradition-related filings:
In December 2010, after informing his wife that he planned to travel to Ireland, Pham traveled from the United Kingdom, where he resided, to Yemen, the principal base of operations for AQAP. AQAP was designated by the U.S. Department of State as a foreign terrorist organization in January 2010 based, in part, on its claims of responsibility for attempted terrorist attacks against the United States. For example, AQAP claimed responsibility for the attempted Christmas Day bombing of a Detroit-bound passenger plane from Europe in 2009. Further, AQAP later claimed responsibility for an October 2010 plot to send explosive-laden packages on U.S.-bound cargo flights.
While in Yemen, Pham met a person who later became a cooperating witness for the United States (CW-1). CW-1 knew Pham as “Amin,” and met face-to-face with him at several AQAP safehouses in Yemen during March and April 2011. According to CW-1, CW-1 first learned about Pham via email correspondence with a now deceased United States citizen, who was a prominent AQAP member (American CC-1). CW-1 first met Pham at an AQAP safehouse in Yemen in or about March 2011, where CW-1 observed Pham carrying a Kalashnikov assault rifle. CW-1 stated that he observed Pham carrying the assault rifle throughout almost all of his interactions with Pham in Yemen. In conversations with CW-1, Pham told CW-1 that he had been trained in the use of the Kalashnikov assault rifle by AQAP while in Yemen. Further, Pham told CW-1 that he (Pham) had traveled to Yemen in order to join AQAP, to wage jihad on behalf of AQAP and to martyr himself for AQAP’s cause. Pham also told CW-1 that he (Pham) had sworn bayat in the presence of an AQAP commander prior to leaving Yemen.
CW-1 also witnessed Pham’s interactions with American CC-1 and a second United States citizen (American CC-2), also now deceased, who was also a prominent AQAP member. CW-1 observed PHAM working closely with American CC-1, who was responsible for editing and publishing Inspire magazine – an English-language publication used by AQAP to distribute propaganda and recruit individuals from Western cultures to join and/or support AQAP. In or about October 2010, AQAP released the second issue of Inspire magazine, which included a feature article entitled “I Am Proud to be a Traitor to America,” written by American CC-2. In addition, Pham told CW-1 that Pham was working with American CC-1 and that he (Pham) had spent time at no fewer than three AQAP safehouses. During CW-1’s time at the AQAP safehouses where Pham had also been, CW-1 also spoke with American CC-1 and American CC-2 about Pham and understood from them that Pham was providing valuable assistance to American CC-1 in connection with the production and editing of Inspire magazine.
On July 27, 2011, Pham returned to the United Kingdom. Upon his arrival at London’s Heathrow International Airport, United Kingdom authorities detained and searched Pham. Materials recovered from Pham at this time corroborate CW-1’s account of CW-1’s interactions with Pham while in Yemen. For example, CW-1 stated that, while in Yemen, CW-1 personally exchanged various electronic documents with Pham – and Pham was found in possession of various electronic media that contained computer files forensically identical to those possessed by CW-1. In addition, CW-1 reported that Pham almost always carried a Kalashnikov in Yemen – and upon his arrival in the United Kingdom from Yemen, Pham was found to be in possession of a live round of .762 caliber armor-piercing ammunition, which is consistent with ammunition that is used in a Kalashnikov assault rifle.
* * *
The indictment charges Pham with five separate counts: one count of conspiracy to provide material support to AQAP; one count of providing material support to AQAP; one count of conspiracy to receive military-type training from AQAP; one count of receiving military-type training from AQAP; and one count of using, carrying, and possession of a firearm (machine gun) in furtherance of crimes of violence (counts one though four).
If convicted on all counts, Pham faces a maximum sentence of life in prison, with a mandatory minimum sentence of 40 years in prison. The maximum sentences for each of the charges are reflected in the attached chart. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Pham, 32, was arrested in the United Kingdom on June 29, 2012, pursuant to a provisional arrest warrant issued by U.K. authorities pursuant to a request from the United States. Since that time, Pham has challenged his extradition to the United States. On Feb. 3, 2015, a court in the United Kingdom denied Pham’s challenge, and ordered him extradited to the United States. Pham arrived in the Southern District of New York on Feb. 26, 2015.
Assistant Attorney General Carlin joined U.S. Attorney Bharara in praising the extraordinary investigative work of the FBI’s Washington Field Office. He also expressed his gratitude to the New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department – for the critical role it played in the investigation. In addition, Assistant Attorney General Carlin and U.S. Attorney Bharara thanked the Department of Defense, and the British authorities, including New Scotland Yard and the Crown Prosecution Service, for their cooperation in the investigation. Finally, he expressed thanks for the invaluable work of the Office of International Affairs in pursuing Pham’s extradition from the United Kingdom.
This case is being handled by the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Anna M. Skotko, Sean S. Buckley and Ian McGinley are in charge of the prosecution.
The charges contained in the Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
United States Settles False Claims Act Allegations Against Patient Safety Consultant and His CompaniesRead the Press Release
Dr. Charles Denham, of Laguna Beach, California, has agreed to pay the United States $1 million to settle allegations that he violated the False Claims Act by soliciting and accepting kickbacks, the Justice Department announced today. Denham is a patient safety consultant who operates the consulting company Health Care Concepts Inc. and the research organization Texas Medical Institute of Technology, both of which are also parties to the settlement. In 2009 and 2010, Denham was co-chair of the Safe Practices Committee of the National Quality Forum.
“Kickback schemes undermine the integrity of medical decisions, subvert the health marketplace and waste taxpayer dollars,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Doctors and other health care professionals who accept illegal inducements undermine the public’s trust in federal health care programs and will continue to be the focus of our enforcement efforts.”
The settlement resolves allegations that, under agreements entered into in 2008, Denham received monthly payments from CareFusion Corporation while serving as the co-chair of the Safe Practices Committee, which reviews, endorses and recommends standardized healthcare performance measures and practices. The United States contended that Denham did not disclose to the committee, or any other individual or component of the National Quality Forum, that he was receiving payments from CareFusion. The United States further contended that Denham solicited and received these payments in exchange for influencing the recommendations of the National Quality Forum and for recommending, promoting and/or arranging for the purchase of CareFusion’s product, ChloraPrep, in violation of the Federal Anti-Kickback Statute. The United States alleged that this conduct caused the submission of false or fraudulent claims for ChloraPrep to federal health care programs.
“Quality and patient safety must drive medical recommendations,” said Inspector General Daniel R. Levinson of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “Doctors that put profits ahead of this core value must be held accountable. Dr. Denham and his two businesses will be excluded from Medicare, Medicaid and all federal health programs as part of this settlement.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement was the result of a coordinated effort among the Civil Division, the U.S. Attorney’s Office for the District of Kansas and the HHS-OIG.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Statement by Attorney General Holder Following Meeting with Bipartisan Coalition for Criminal Justice ReformRead the Press Release
Attorney General Eric Holder released the following statement Monday after he and Acting Deputy Attorney General Sally Yates met with representatives from the Coalition for Public Safety, a bipartisan organization dedicated to pursuing reform of the nation’s criminal justice system:
“In our ongoing effort to reform our criminal justice system, the formation of a coalition this ideologically diverse represents an important milestone unto itself. Though different concerns may bring us to the table – whether it be the skyrocketing costs of incarceration, or the unfair disparities seen in our prison population – the important thing is the broad consensus in favor of action on this issue. The Justice Department has made real gains in reforming our sentencing policies and reducing the federal prison population, but more work remains to be done. Even at a time of gridlock in Washington, I am actually quite optimistic that criminal justice reform is one issue around which we can unite and make a true difference.”
Sixteen People Resentenced for Obstructing the Investigation of Assaults on Practitioners of the Amish ReligionRead the Press Release
Sixteen people were resentenced today for crimes arising out of a series of assaults on practitioners of the Amish religion announced Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio and Special Agent in Charge Stephen Anthony of the FBI Cleveland Office.
The defendants all reside in Bergholz, Ohio, unless otherwise noted. Samuel Mullet, 69, received a prison sentence of 129 months. Johnny S. Mullet, 41; Lester Mullet, 30, of Hammondsville, Ohio; Levi F. Miller, 56; and Eli M. Miller, 35, received 60 months. Daniel S. Mullet, 40; Lester Miller, 40; and Emanuel Schrock, 46, received 43 months. Raymond Miller, 30, of Irondale, Ohio; Linda Shrock, 47; Freeman Burkholder, 34, of Irondale; Anna Miller, 35; Elizabeth A. Miller, 40, of Irondale; Emma J. Miller, 40; Kathryn Miller, 25, of Irondale; and Lovina Miller, 35, all of whom had already completed previously-imposed prison sentences, received time served.
A jury found the defendants guilty in 2012 following a lengthy trial. All of the defendants were found guilty of conspiracy to obstruct justice. Eli Miller, Lester Mullet, and Levi Miller were also found guilty of concealing evidence. Samuel Mulllet Sr., was convicted of concealing evidence and making false statements to federal investigators. The convictions stem from five separate assaults that occurred in four Ohio counties between September and November 2011 and from the defendants’ efforts to conceal a camera and photographs that documented the assaults The photographs depicted some of the defendants in the act of assaulting one of the victims and depicted the injuries and humiliation of others. The defendants intended to use the photographs to show other members of the community what they had done to the victims.
All of the defendants were also convicted of conspiracy to violate the Matthew Shepard-James Byrd Hate Crimes Prevention Act, which prohibits any person from willfully causing bodily injury to any person—or attempting to do so by use of a dangerous weapon—because of the actual or perceived religion of that person, as well as for obstruction of justice by witness tampering and the destruction or concealment of evidence.
The jury also convicted various groups of defendants with separate assaults.
The appeals court subsequently overturned the conspiracy to violate the Shepard-Byrd Hate Crimes Prevention Act, as well as the convictions for the separate assaults, citing an incorrect jury instruction. The other convictions were not affected by the appeals court decision.
Samuel Mullet Sr. was the Bishop of the Amish community in Bergholz, while the remaining defendants are all members of that community. Mullet Sr. exerted control over the Bergholz community by taking the wives of other men into his home, and by overseeing various means of disciplining community members, including corporal punishment, according to trial testimony.
The assaults all entailed using scissors and battery-powered clippers to forcibly cut or shave the beard hair of the male victims and the head hair of the female victims. During each assault, the defendants restrained and held down the victims. During some of the assaults, the defendants injured individuals who attempted to intervene to protect or rescue the victims. Following the attacks, some of the defendants participated in discussions about concealing photographs and other evidence of the assaults, according to evidence presented at trial. At today’s hearing, the District Court judge found that the assaults were motivated by religion and the defendants’ obstruction was aimed at preventing law enforcement investigators from discovering the true nature the assaults.
“The Justice Department will always fight to hold accountable those who commit religiously-motivated hate crimes,” said Acting Assistant Attorney General Gupta. “We hope that the prosecution of those responsible for the assaults and the obstruction in this case will help bring closure to those affected by these intolerable crimes.”
“From day one, this case has been about the rule of law and defending the right of people to worship in peace,” said U.S. Attorney Dettelbach. “This was never about ‘haircuts.’ These were violent, religiously motivated home invasions that left the victims bloody, bruised and beaten. These defendants struck at two of our nation's bedrock principles – freedom of religion and the sanctity of the court system."
This case was investigated by the Cleveland Division of the FBI and was prosecuted by Deputy Chief Kristy Parker of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorneys Thomas Getz and Bridget M. Brennan of the U.S. Attorney’s Office for the Northern District of Ohio. The prosecutor’s and sheriff’s offices from Holmes, Carroll, Jefferson and Trumbull counties also provided significant assistance in the investigation and prosecution of this case.
Justice Department Surpasses $2 Billion in Awards Under the Radiation Exposure Compensation ActRead the Press Release
The Justice Department announced today that it has awarded more than $2 billion in compassionate compensation to eligible claimants under the Radiation Exposure Compensation Act (RECA).
The RECA was enacted in 1990 as a non-adversarial alternative to litigation for individuals who contracted certain illnesses following exposure to radiation as a result of the United States’ atmospheric nuclear testing program and uranium ore processing operations during the Cold War. Congress expanded the scope of the law’s coverage in 2000. In its present form, the RECA provides lump sum compensation awards to individuals who contracted specified diseases in three defined populations: uranium miners, millers and ore transporters who are eligible for $100,000 per claim; participants in atmospheric nuclear weapons tests who are eligible for $75,000 per claim; and individuals who lived downwind of the Nevada Test Site (downwinders) who are eligible for $50,000 per claim.
“RECA claimants worked in hazardous occupations and were subjected to increased risk of disease to serve the national security interests of the United States,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “This extraordinary statute provides partial restitution to these individuals and their families for the sacrifices they made during a critical time in our nation’s history.”
Compensation has been awarded to individuals residing in every state. Since 1990, nearly 43,000 claims have been filed and 32,000 claims have been approved. Residents of the Four Corners Region of the American southwest have filed the majority of RECA claims. The department has awarded more than 9,400 claims filed by residents of Arizona, valued at more than $500 million. Approximately 3,800 claims filed by residents of New Mexico have been awarded, valued at nearly $350 million, and approximately 5,800 claims filed by Utah residents have been awarded, valued at approximately $330 million. Colorado residents have received awards in more than 3,200 claims, valued at more than $213 million.
Awards to Native American claimants total approximately $264 million distributed among members of 17 different tribes. The department has awarded more than 2,800 claims filed by members of the Navajo Nation, valued at more than $212 million. In addition, the department has awarded more than $24 million to members of the Laguna Pueblo Tribe and more than $9 million to members of the Apache Tribes.
Since 1990, the department has awarded more than 3,600 claims filed by veterans, civil servants and contractors who participated onsite in atmospheric nuclear tests, valued in excess of $266 million. Nearly $100 million of this compensation was awarded following a surge in claims filed in 2011 and 2012.
“This benchmark reflects the department’s efforts to help thousands of U.S. citizens reach closure on a unique chapter of our history,” said Deputy Assistant Attorney General Kali N. Bracey of the Civil Division’s Torts Branch. The RECA is administered by the Radiation Exposure Compensation Program, a component of the Constitutional and Specialized Torts Litigation section within the Torts Branch.
The Department of Justice is a part of a broad inter-agency network that includes the Departments of Defense, Veterans Affairs, Labor, Health and Human Services, and Energy, comprising the comprehensive federal radiation compensation system. Eligibility determinations are routinely coordinated with these agencies.
The RECA will expire on July 9, 2022, and claims received after that date will be barred. Individuals interested in filing a claim may visit the department’s RECA website or contact the Radiation Exposure Compensation Program at 800-729-7327.
Justice Department Reaches Agreement with Rapid City, South Dakota, to Improve Accessibility of Civic CenterRead the Press Release
The Department of Justice today announced an agreement with Rapid City, South Dakota, to remedy architectural accessibility issues that violate the Americans with Disabilities Act (ADA) at the Rushmore Plaza Civic Center (Civic Center). This year marks the 25th anniversary of the Americans with Disabilities Act (ADA), which the Civil Rights Division plays a critical role in enforcing.
Rapid City and the U.S. Department of Justice reached an agreement under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the ADA. Under the agreement, Rapid City is required to ensure that the 11 parking areas surrounding the Civic Center will comply with the ADA’s 2010 Standards for Accessible Design.
The agreement with Rapid City will allow people with disabilities to access county buildings, such as Connie Whitley and Jim Nelson, who attended the Black Hills Works Gala, a formal event that brings nearly 800 people from the area together to honor people with disabilities. Upon arriving at the Civic Center, where the gala was taking place, the couples’ driver found a spot that was designated as accessible, but in practice was not. It lacked the required “access aisle,” leaving Ms. Whitley and Mr. Nelson no room to get out of the car with their wheelchairs. After finding another spot and maneuvering through the snow, the couple then found that a side entrance at the Civic Center as well as the door to the room where the gala was being held were also not accessible. The size of their wheelchairs requires both double doors to be held open – a difficult task with only one staff person present.
Experiences like this, however, will become a thing of the past over the next three years thanks to the PCA agreement. You can learn more about Ms. Whitley and Mr. Nelson’s story by checking out the Justice Department blog, where each month of 2015, the department is highlighting how PCA agreements have an impact on the everyday lives of people with disabilities.
Under the agreement, the Civic Center will have the required number of designated accessible parking spaces, including van-accessible spaces. Each space will be the appropriate size, have an access aisle and accessible signage, and be on the shortest accessible route to an accessible entrance.
“Connie and Jim’s story reminds us of the kinds of things people with disabilities face every day; the kinds of things that many of us take for granted,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Something as simple as getting in the door should not become a Herculean feat. Under today’s agreement, in addition to getting in the door, more will be done by Rapid City to make its Civic Center accessible to persons with disabilities. The agreement addresses companion seating for wheelchair users, public restrooms, interior ramps, drinking fountains and even dressing rooms for performers with disabilities.”
For more information about the ADA, today’s agreement, the PCA initiative, individuals may access the ADA web page at http://www.ada.gov/civicac.htm or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Delaware Seafood Wholesaler and Company Fined and Owner Sentenced to 26 Months in Prison for Illegally Trafficking in OystersRead the Press Release
Mark Bryan, 59, of New Market, Maryland, and his Delaware-based seafood wholesale business, Harbor House Seafood, were sentenced on Friday in federal court in Camden, New Jersey, for trafficking in illegally possessed oysters, creating false health and safety records, and conspiracy charges.
Bryan was sentenced to serve 26 months in prison followed by three years of supervised release. Bryan was also ordered to pay a $62,500 fine and to pay New Jersey $140,000 for the restoration of oyster beds in Delaware Bay. Harbor House was ordered to pay a $250,000 fine and was sentenced to five years of probation. Friday’s sentences, in addition to the previous sentencing of Bryan’s co-conspirators and suppliers, brings the total fines and forfeitures in this matter to over $625,000, along with $194,000 of restoration costs..
Bryan and Harbor House were convicted in 2012 of multiple felony crimes related to dealings in illegal oysters from 2004 to 2007. The evidence showed that for more than four years, Bryan conspired with New Jersey oystermen Thomas Reeves and Todd Reeves to cover up the Reeves’ overharvest of oysters from the Delaware Bay. Bryan, through his company, Harbor House Seafood, purchased the illegal oysters from the Reeves, then assisted in covering up the Reeves’ overharvest by maintaining double-books, providing federal agents with false records, and by falsifying his FDA-mandated health and safety logs. The jury saw numerous instances of late-night faxes between Bryan and the Reeves which were used to coordinate their conspiracy and hide their wrong-doing from investigators. Bryan was also shown to have purchased illegal oysters from oyster harvester Kenneth Bailey of New Jersey. During the course of his crimes, Bryan moved, purchased and sold over $1.2 million worth of illegal oysters.
The Reeves and Bailey were previously sentenced on Feb. 11, 2015, to 26 months, 16 months, and 12 months in prison, respectively, for their roles.
“The defendants’ actions provided a market for dishonest oystermen who were willing to place natural resources at risk in the name of profit,” said Assistant Attorney General John C. Cruden of the Department of Justice’s Environment and Natural Resources Division. “Today’s sentences send the message that those who knowingly deal in illegal natural resources will be held accountable.”
“Today's sentence underscores the value that state partnerships add to NOAA Office of Law Enforcement’s ability to complete its mission,” said Assistant Director Logan Gregory for NOAA Fisheries Office of Law Enforcement. “In this case, our partnership with New Jersey Division of Fish and Wildlife was crucial in protecting the oyster resource in New Jersey and leveling the playing field across multiple industry sectors throughout the mid-Atlantic Region.”
The Lacey Act prohibits creating or submitting false records for fish or wildlife moving in interstate commerce and also prohibits trafficking in fish or wildlife known to be illegally taken or possessed. The FDA and state health agencies require that oyster purchasers and sellers maintain accurate records of the amounts and locations of oyster harvest for all oysters they buy and sell in order to protect public health and minimize the impact of any oyster-borne outbreak of disease.
The case was investigated by the NOAA Office of Law Enforcement and the New Jersey Department of Environmental Protection’s Division of Fish and Wildlife. The case was prosecuted by Assistant Chief Wayne D. Hettenbach and Trial Attorney Patrick M. Duggan of the Environment and Natural Resources Division’s Environmental Crimes Section, with assistance from Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office for the District of New Jersey.
Attorney General Holder Statement on the Retirement Announcement of Senator Barbara MikulskiRead the Press Release
Attorney General Eric Holder released the following statement Monday after Senator Barbara Mikulski, the longest serving woman in Congress, announced that she would not be seeking re-election in 2016:
“For nearly four decades, Senator Mikulski has distinguished herself in the halls of Congress as a pioneering role model, a principled mentor and an inspiring force for positive change. She has demonstrated unparalleled leadership, unwavering dedication and vital skill. And she has exemplified the integrity, intelligence and constructive spirit that define public service at its best.
“From her days as a community organizer to her service as a city councilwoman to her distinction as the longest-serving woman in the history of the United States Congress, Senator Mikulski has been a fierce advocate for the people of Maryland, a trailblazer for women around the country and a champion on behalf of Americans who are too frequently overlooked and too often underserved. Her extraordinary contributions have left an indelible mark on her home state and on the nation she loves. Her commitment to progress has driven real and tangible change -from paycheck fairness to voting access and from domestic violence prevention to civil rights. And throughout my career at the Department of Justice, she has been a steadfast ally in the mission we share, a strong supporter of the department’s work and employees and a vocal proponent of equal justice under the law.
“I offer my thanks for her service, for her friendship and for the remarkable legacy she will leave behind. I wish her well for the remainder of her term in the United States Senate. And I look forward to all that she will achieve in the next chapter of her extraordinary career.”
Attorney General Holder Names Benjamin C. Mizer as Principal Deputy Assistant Attorney General and Acting Assistant Attorney General for the Civil DivisionRead the Press Release
Attorney General Eric Holder today announced that he has named Benjamin C. Mizer as Principal Deputy Assistant Attorney General and Acting Assistant Attorney General for the Civil Division.
Mizer replaces Joyce R. Branda, who will return to her permanent role as the Deputy Assistant Attorney General for the Commercial Litigation Branch. Mizer and Branda assumed their positions today.
“Ben Mizer’s unassailable integrity, sound judgment and steadfast commitment to the mission of this department are just a few of the reasons he’s been chosen to serve as the new Principal Deputy Assistant Attorney General and Acting Assistant Attorney General for the Civil Division – a critical and demanding post, and one in which he will undoubtedly thrive,” said Attorney General Holder “Ben’s work here in Washington and as Solicitor General for the state of Ohio has put him in some of the most challenging and demanding positions a lawyer can encounter. But in every instance, Ben has repeatedly demonstrated that he is both a gifted lawyer and a capable leader. I am confident that his stewardship of the Civil Division will build on the exceptional record he has already established – and reflect the high ideals that have animated him from the very beginning of his career. I congratulate Ben once again on his new role, and I look forward to all that he will achieve as he works to move this department, and this nation, toward an even brighter future.”
Prior to his selection to run the Civil Division, Mizer served as a senior advisor to Attorney General Holder on matters related to constitutional law, national security, civil rights, civil litigation, antitrust law and the Supreme Court.
Mizer has also served as Deputy Assistant Attorney General in the Office of Legal Counsel. As a member of OLC’s leadership team, Mizer provided legal advice to the President, the Attorney General and other executive branch agencies on questions of constitutional law and other issues of particular complexity or importance. Before coming to the department, Mizer served as the Solicitor General of Ohio. As part of those responsibilities, he represented the state as counsel of record in hundreds of appeals. He argued three cases in the U.S. Supreme Court and many more in the Sixth Circuit Court of Appeals and the Ohio Supreme Court on a broad array of issues, including election law, taxation, civil rights, criminal procedure, gun rights and the death penalty.
Mizer also previously worked as an associate at WilmerHale and as an associate legal officer at the International Criminal Tribunal for the Former Yugoslavia in The Hague. Additionally, Mizer clerked for U.S. Supreme Court Justice John Paul Stevens and D.C. Circuit Judge Judith W. Rogers.
Mizer received his J.D. from the University of Michigan Law School and his B.A. from the College of Wooster.
Branda has served as Acting Assistant Attorney General for six months after Stuart Delery was named Acting Associate Attorney General in September 2014.
“I am indebted to Stuart Delery and Joyce Branda for their recent stewardship of the Civil Division,” Mizer said. “Both are exceptional public servants and even better people, and I am honored to be joining a Division that is stronger than ever because of their leadership.”
Two Miami Tax Preparers and Client Sentenced in Fraudulent Refund SchemeRead the Press Release
Three Miami residents were sentenced for their roles in a tax refund scheme, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Special Agent in Charge Kelly R. Jackson of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Miami Office.
According to the indictment and facts established at his sentencing hearing, Sean Anthony Lopez, 35, of Miami, submitted false personal federal income tax returns claiming $625,320 in fraudulent refunds. Lopez received this refund in connection with his role as a client of an illicit tax preparation business located at 18710 SW 107th Street in Miami. Lopez was sentenced today to serve 30 months in prison. The court also ordered Lopez to pay restitution to the U.S. Treasury in the amount of $695,635.
Lopez’s co-defendants, Claudia Zuloaga, 43, and Sharon Elizabeth Angulo, 49, both of Miami, operated this South Miami-Dade County tax preparation business under the names Sterling Executive Associates Inc. and Sterling Executive (Sterling), and assisted Lopez in the preparation of his fraudulent tax returns, as well as numerous other similar false tax returns.
Angulo and Zuloaga were each previously sentenced to serve 60 months in prison. The court also ordered Angulo and Zuloaga to each pay restitution to the U.S. Treasury in the amount of $1,539,873.
According to the indictment and facts established at sentencing, beginning in approximately September 2008 and continuing through September 2012, Zuloaga and Angulo recruited numerous clients, including Lopez, by falsely representing that they could eliminate a substantial portion of their debts by obtaining sizable tax refunds for them. This would be accomplished through false and fraudulent tax returns prepared by Zuloaga and Angulo in exchange for a fee, usually amounting to 30 percent of the fraudulently obtained tax refund. Zuloaga and Angulo were responsible for causing the submission of multiple fraudulent tax returns claiming refunds totaling in excess of $5.4 million. As further established at their sentencing hearings, the IRS was fraudulently induced to issue refund checks in the aggregate amount of $2,305,081, a portion of which was disbursed to Lopez with respect to his fraudulent tax returns.
As further alleged in the indictment and established at their sentencing hearings, the tax returns prepared at Sterling by Zuloaga and Angulo falsely set forth that financial institutions at which the clients maintained accounts withheld sizable amounts of tax from falsely declared interest income, which was falsely claimed as having been earned by the clients. Through this fraudulent mechanism, each return gave the appearance of entitling the client to a significant tax refund due to over-withholding of tax payments in connection with their claimed interest earnings. In addition, in order to provide false substantiation for these fraudulent tax refund claims, the defendants caused fictitious IRS Forms 1099-OID to be created, which set forth the false interest and tax withholding amounts fraudulently reported upon their clients’ tax returns.
It was also established at sentencing hearings that Zuloaga and Angulo promoted the fictitious “redemption theory” to their clients as the purported justification for their fraudulent tax refund claims. Through this promotion, clients were falsely informed that the submission of tax returns in this manner allowed their clients to legitimately access large amounts of money allegedly contained in certain non-existent “straw man” accounts which the defendants claimed were being maintained by the U.S. Treasury for each individual who possessed a social security number.
U.S. Attorney Ferrer and Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS – Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Peter B. Outerbridge of the Southern District of Florida and Trial Attorney Alexander Effendi of the Tax Division, who prosecuted the case.
A copy of this press release may be found on the U.S. Attorney’s Office for the Southern District of Florida’s website. Related court documents and information may be found on the U.S. District Court in the Southern District of Florida’s website or on Pacer.
Two Miami Residents Sentenced to 72 Months in Prison for Their Roles in $63 Million Medicare Fraud SchemeRead the Press Release
Two Miami residents were sentenced to serve 72 months in prison for their roles in a $62 million Medicare fraud scheme involving intensive mental health treatment programs.
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 Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement. U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida imposed the sentence.
Blanca Ruiz, 61, and Alina Fonts, 49, both of Miami, were convicted of conspiracy to commit healthcare fraud following a trial in November 2014. Fonts was also convicted of two counts of health care fraud.
According to the evidence presented at trial, both Ruiz and Fonts were employed at Health Care Solutions Network Inc. (HCSN), a now-defunct partial hospitalization program (PHP) that purported to provide intensive treatment for severe mental illness. The evidence at trial demonstrated, however, that from 2004 through 2011, HCSN billed Medicare and Medicaid for treatment that was not medically necessary and often not provided at all. In Florida, HCSN operated community mental health centers at two locations.
Evidence at trial showed that Ruiz and Fonts oversaw the alteration, fabrication and forgery of thousands of documents, including patient medical records, to support the fraudulent claims HCSN submitted to Medicare and Medicaid. Many of these medical records were created weeks or months after the patients were admitted to HCSN facilities for purported treatment. The evidence at trial demonstrated that the “therapy” at HCSN oftentimes consisted of nothing more than Disney movies and bingo games, and Ruiz and Fonts removed any references to these recreational activities in the medical records. Fonts also fabricated medical records for North Carolina-based patients whom she never met.
According to the evidence presented at trial, Ruiz and Fonts were also aware that HCSN paid illegal kickbacks to owners and operators of Miami-Dade County assisted living facilities in exchange for patient referrals to be used to submit false and fraudulent claims to Medicare and Medicaid. Ruiz and Fonts knew that many of the referred patients were ineligible for PHP services because they suffered from mental retardation, dementia and Alzheimer’s disease.
From 2004 through 2011, HCSN billed Medicare and the Medicaid program approximately $63 million for purported mental health services.
This 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 Southern District of Florida. This case was prosecuted by Trial Attorneys Allan J. Medina, Brendan A. Stewart and Justin Goodyear 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 nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare and 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 Team (HEAT), go to: www.stopmedicarefraud.gov.
Tilghman Island Fisherman Sentenced to Prison for Illegal Fish Harvesting in the Chesapeake BayRead the Press Release
U.S. District Judge Richard D. Bennett sentenced Michael D. Hayden, 43, of Tilghman Island, Maryland, today to 18 months in prison to be followed by six months of home detention and three years of supervised release for conspiring to violate the Lacey Act and defraud the United States through the illegal harvesting and sale of 185,925 pounds of striped bass. Judge Bennett also ordered that Hayden pay $498,000 in restitution and fined $40,000 to the state of Maryland for the damage caused to the striped bass.
The sentence was announced by Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division John C. Cruden, U.S. Attorney for the District of Maryland Rod J. Rosenstein, Secretary-designee Mark Belton of the Maryland Department of Natural Resources (DNR) and Regional Special Agent in Charge Honora Gordon for the U.S. Fish and Wildlife Service.
“Mr. Hayden is being held justly accountable for his role at the head of a conspiracy to plunder protected striped bass from the Chesapeake Bay,” said Assistant Attorney General Cruden. “The Justice Department, working closely with our state partners, will continue to protect these shared resources for the law abiding watermen of the Bay with vigorous prosecution of those who do not follow the law.”
“I commend the men and women of the Natural Resources Police who, with our federal partners, are committed to upholding the laws that protect Maryland's fish and wildlife,” said Secretary-designee Belton. “And I thank the citizens who came forward with tips to aid this extensive investigation.”
According to his plea agreement and court documents, Hayden was a captain on fishing vessels owned by him and his company, d/b/a, Michael D. Hayden, Jr., and Michael D. Hayden, Jr., Inc. Hayden and co-defendant William J. Lednum, 41, of Tilghman Island, also employed numerous “helpers” as part of this operation, including co-defendants Kent Conley Sadler, 31, of Tilghman Island, and Lawrence “Daniel” Murphy, 37, of St. Michaels, Maryland.
From at least 2007 to 2011, Hayden and his co-conspirators illegally harvested at least 185,925 pounds of striped bass from the Chesapeake Bay in violation of Maryland regulations relating to harvest method, amounts, tagging and reporting. To conceal their crimes, Hayden and his co-conspirators falsified paperwork submitted to the state of Maryland relating to their harvests. The state in turn submits such paperwork to federal and interstate agencies responsible for setting harvest levels all along the eastern seaboard. Hayden and his co-conspirators shipped and sold the illegally harvested striped bass to wholesalers in Maryland, New York, Pennsylvania and Delaware who paid them a total of $498,293.
The investigation in this case started in February 2011 when the Maryland Department of Natural Resources found tens of thousands of pounds of striped bass snagged in illegal, anchored nets before the season officially reopened. The conspirators were seen on the water in the vicinity of the illegal nets. The subsequent investigation unveiled a wider criminal enterprise for which Hayden was sentenced today.
Co-defendants Lednum, Murphy, and Sadler previously pleaded guilty to their participation in the conspiracy. Lednum was sentenced to a year and a day in prison and ordered to pay a $40,000 fine and restitution of $489,293, Murphy was sentenced to three years’ probation and ordered to pay a $10,000 fine and $30,000 in restitution and Sadler was sentenced to 30 days in prison to be served on the weekends from Jan. 30, 2015 to May 17, 2015. Sadler was also ordered to pay a $5,000 fine and $20,000 in restitution.
Trial attorneys Todd W. Gleason and Shennie Patel of the Department of Justice’s Environmental Crimes Section, and Assistant U.S. Attorney P. Michael Cunningham prosecuted the case.
Michigan Psychotherapy Clinic Owner Sentenced to 87 Months in Prison for his Role in $3.3 Million Medicare Fraud SchemeRead the Press Release
A former Michigan resident who directed a $3.3 million psychotherapy fraud scheme, was sentenced today to 87 months in prison, announced 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 Paul M. Abbate of the FBI Detroit Field Office and Special Agent in Charge Lamont Pugh III of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Detroit Office.
Gerald R. Funderburg Jr., 35, of Syracuse, New York, was sentenced by U.S. District Judge Stephen J. Murphy III in the Eastern District of Michigan. In addition to his prison term, Funderburg was ordered to pay $1,453,064.59 in restitution.
According to admissions made in connection with his guilty plea, from November 2006 through April 2011, Funderburg owned and controlled Funderburg Clinical & Community Services (FCCS), which he used to submit false claims to Medicare for purported psychotherapy services.
Funderburg admitted that he used the Medicare information and identities of hundreds of Medicare beneficiaries without their consent to submit claims for psychotherapy services that were not actually provided. Funderburg also admitted that he used personal information of licensed social workers without their consent to obtain Medicare provider numbers in their names, which he then used to submit false claims to Medicare for services purportedly provided by the same social workers. The social workers, however, did not provide the care for which Funderburg billed Medicare.
Over the course of the scheme, Funderburg admitted that he caused FCCS to submit over $3.3 million in fraudulent claims, and Medicare paid $1,453,064 for those claims.
This case was investigated by the FBI and HHS-OIG, and was brought by the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Eastern District of Michigan. The case was prosecuted by Deputy Chief Gejaa T. Gobena, Assistant Chief Catherine K. Dick and Trial Attorneys Matthew C. Thuesen, Dustin M. Davis and William G. Kanellis 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 nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 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 Team (HEAT), go to: www.stopmedicarefraud.gov.
Joint Statement by the Department of Justice and the Office of the Director of National Intelligence on the Declassification of Renewal of Collection Under Section 215 of the USA Patriot ActRead the Press Release
Early last year in a speech at the Department of Justice, President Obama announced a transition that would end the Section 215 bulk telephony metadata program as it previously existed, and that the government would establish a mechanism that preserves the capabilities we need without the government holding this bulk data.
As a first step in that transition, the President directed the Attorney General to work with the Foreign Intelligence Surveillance Court to ensure that, absent a true emergency, telephony metadata can only be queried after a judicial finding that there is a reasonable, articulable suspicion that the selection term is associated with an approved international terrorist organization. The President also directed that the query results must be limited to metadata within two hops of the selection term instead of three.
These two changes have been in effect since February 2014.
In addition, the President also directed the Intelligence Community and the Attorney General to develop options for a new approach to match the capabilities and fill gaps that the Section 215 program was designed to address without the government holding this metadata.
After carefully considering the available options, the President announced in March that the best path forward is that the government should not hold this data in bulk, and that the data should remain at the telephone companies with a legal mechanism in place that would allow the government to obtain data pursuant to individual orders from the FISC approving the use of specific numbers for such queries.
The President also noted that legislation would be required to implement this option, and he has called on Congress to enact this important change.
As the White House said, the Administration welcomes the opportunity to work with the new Congress to implement the changes the President has called for. Given that legislation has not yet been enacted, and given the importance of maintaining the capabilities of the telephony metadata program, the government has sought a reauthorization of the existing program, as modified by the changes the President directed in January.
Consistent with prior declassification decisions and in light of the significant and continuing public interest in the telephony metadata collection program, DNI James R. Clapper declassified the fact that the government filed an application with the FISC to reauthorize the existing program until June 1, 2015, and that the FISC issued an order approving the government’s application. The Government sought renewal of this authority to and including June 1, 2015 in order to align the expiration date of the requested order for this program with the June 1, 2015 sunset of Section 215 of the PATRIOT Act.
The Administration is undertaking a declassification review of this most recent court order, and when complete, the ODNI will post the document to its website and icontherecord.tumblr.com.
Former Puerto Rico Police Officer Sentenced for Committing Perjury During Civil Rights InvestigationRead the Press Release
Former Police of Puerto Rico Sergeant Antonio Rodriguez Caraballo was sentenced today to serve 46 months in prison and three years supervised release for making a false statement under oath to the federal grand jury investigating civil rights violations stemming from the fatal beating of Jose Luis Irizarry Perez, 19, announced Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Rosa Emilia Rodriguez-of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI San Juan Field Office.
Rodriguez Caraballo pleaded guilty to perjury for providing false information to the grand jury concerning what he observed during the police-involved beating of Irizarry Perez. One other former Puerto Rico police officer has already been sentenced for his obstructive conduct during the federal investigation into the incident, while four other former Puerto Rico police officers, who also pleaded guilty, are awaiting sentencing for their roles in the beating and subsequent obstruction of the investigation. According to documents filed in connection with the guilty pleas, two former Puerto Rico police officers violated the constitutional rights of Irizarry Perez by striking him with their police batons while another former police officer physically restrained Irizarry Perez during an election evening celebration at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008.
U.S. District Court Judge Juan M. Perez Gimenez issued the sentence, which will be followed by three years of supervised release. During the three-year term, the defendant will be under federal supervision, and risks additional prison time should he violate any terms of his supervised release.
“The department will not tolerate those who violate the sanctity of the grand jury by lying under oath,” said Acting Assistant Attorney General Gupta. “Such conduct is especially egregious in the case at hand, where a sworn law enforcement officer attempted to cover up an assault by police officers by misleading the grand jury.”
“When those who are sworn to uphold the law and protect others choose to abuse their power and position, they undermine the public’s confidence in the justice system and our government institutions,” said U.S. Attorney Rodriguez-Vélez. “The U.S. Attorney’s Office and the Department of Justice are committed to promoting trust in our system of justice by vigorously prosecuting those who obstruct justice.”
This case was investigated by the FBI’s San Juan Division and is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorneys Shan Patel and Olimpia E. Michel of the Civil Rights Division and Assistant U.S. Attorney Jose A. Contreras of the District of Puerto Rico.
Former Enzyme Company Owner Pleads Guilty to Filing False Tax Returns and PerjuryRead the Press Release
A Fort Wayne, Indiana, resident pleaded guilty yesterday in the U.S. District Court in the Northern District of Indiana to two counts of filing a false tax return and one count of perjury, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the information and court documents, in 2008 and 2009, Jared Hochstedler participated in five separate “wrap,” or stock-for-equity, agreements where two companies, Signature Worldwide Advisors LLC and K&L Enterprises Inc., assumed more than $3.2 million in debt owed to Hochstedler by his company, Enzyme Environmental Solutions Inc. (EES), primarily for his back wages in exchange for stock in EES. Signature and K&L then sold the stock on the over-the-counter market for profit and paid Hochstedler more than $2.8 million. Hochstedler failed to report this income on his 2008 and 2009 individual federal income tax returns. Hochstedler also failed to report more than $1 million paid by K&L as purported loans.
Hochstedler engaged in another stock-for-equity agreement with Bebida Beverage Company, where he assumed the debt of Bebida in exchange for its stock. In 2009, he sold the Bebida stock for more than $1 million and substantially underreported the capital gain on his tax return.
In June of 2009, the SEC deposed Hochstedler regarding the stock-for-equity transactions. During the deposition, Hochstedler falsely stated that the stock he received from Bebida represented repayment of loans and that he sold the Bebida stock for $300,000 to $400,000, when the actual sales price was in excess of $1 million.
Hochstedler faces a statutory maximum sentence of three years in prison and a $250,000 fine for each false return count, and a statutory maximum sentence of five years in prison and a $250,000 fine for the perjury count.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation who investigated the case, as well as Trial Attorneys Richard Rolwing and Christopher O’Donnell of the Tax Division, who are prosecuting the case. She also thanked the U.S. Attorney’s Office for the Northern District of Indiana for their assistance.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Florida Man Pleads Guilty for Role in Puerto Rican Identity Trafficking RingRead the Press Release
A Florida man pleaded guilty today for his role in a large-scale identity trafficking ring, which sold the identities of Puerto Rican U.S. citizens to foreign nationals to allow them to enter or remain in the United States illegally. To date, a total of 14 individuals have been charged for their roles in this identity trafficking ring, and four have pleaded guilty.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Director Sarah R. Saldaña of Immigration and Customs Enforcement (ICE), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Director Bill A. Miller of the Department of State’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Rey David Bravo-Aguirre, 43, of Bartow, Florida, pleaded guilty to one count of conspiracy to commit identification fraud, one count of conspiracy to commit alien smuggling for financial gain and one count of transferring and possessing means of identification of another person during and in relation to a felony. A sentencing hearing is scheduled for June 3, 2015, before U.S. District Judge Juan M. Pérez- Giménez of the District of Puerto Rico.
According to his plea agreement, Bravo-Aguirre operated as a broker of Puerto Rican identities and corresponding identity documents out of Bartow, Florida. In that role, Bravo-Aguirre received identity documents from other members of the conspiracy located in the Caguas-area of Puerto Rico and sold them to individuals unlawfully residing in Florida. Specifically, Bravo-Aguirre admitted that he provided Social Security cards and corresponding Puerto Rico birth certificates to his customers.
The charges are the result of Operation Island Express II, an ongoing, nationally-coordinated investigation led by ICE’s Homeland Security Investigations (HSI), USPIS, DSS and IRS-CI offices in Chicago, in coordination with the ICE-HSI San Juan Office. The Illinois Secretary of State Police also provided substantial assistance. The ICE-HSI Attaché office in the Dominican Republic, National Drug Intelligence Center - Document and Media Exploitation Branch and International Organized Crime Intelligence and Operations Center (IOC-2) provided invaluable assistance, as well as various ICE, USPIS, DSS and IRS CI offices around the country.
The case is being prosecuted by Trial Attorneys Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and William Kenety of the Criminal Division’s Human Rights and Special Prosecutions Section, and Special Assistant U.S. Attorney Jorge Ramos of the District of Puerto Rico.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline. Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website. Additional resources regarding identity theft include the Office for Victims of Crime’s Identity Theft and Financial Fraud; the Social Security Adminstration’s Identity Theft and Your Social Security Number; the FBI’s Identity Theft; and the IRS’s Identity Protection: Prevention, Detection and Victim Assistance.
Washington State Business Owner Convicted of Failing to Pay Employment TaxesRead the Press Release
A Burbank, Washington, woman was convicted by a jury yesterday after a five-day trial in the U.S. District Court in the Eastern District of Washington located in Spokane, Washington, of willfully failing to pay more than approximately $2.6 million in federal payroll taxes withheld from her employees, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael C. Ormsby of the Eastern District of Washington.
“Employers who willfully fail to timely collect, account for and deposit employment taxes are, quite simply, stealing from their employees and the U.S. Treasury,” said Principal Deputy Assistant Attorney General Ciraolo. “Yesterday’s verdict sends a clear message to those individuals who view this obligation as optional – you will be investigated and prosecuted to the fullest extent of the law.”
According to the evidence introduced at trial and other documents filed in the case, Maria Elizabeth Townsend was the president and majority owner of Townsend Controls Inc. (TCI), an electrical contractor in Pasco, Washington. The majority of TCI’s employees were members of Local 112 of the International Brotherhood of Electrical Workers (Local 112). From at least April 1, 2007, through Sept. 30, 2009, Townsend withheld employment taxes from the wages of the members of Local 112 that TCI employed as well as its other non-union employees. She willfully failed, however, to pay those taxes to the Internal Revenue Service (IRS). Instead of paying the withheld taxes, Townsend purchased several automobiles and made large disbursements of corporate funds to her family members.
Townsend faces a statutory maximum sentence of five years in prison and a $250,000 fine for each count of failing to pay over employment taxes. Sentencing is scheduled for June 4.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Ormsby commended the special agents of IRS-Criminal Investigation who investigated the case, as well as Assistant U.S. Attorney George J. C. Jacobs III and Trial Attorney Lisa L. Bellamy of the Tax Division, who are prosecuting the case.
Law Enforcement and Non-Profits Meet to Halt Scams Targeting Specific Groups of AmericansRead the Press Release
The Justice Department announced today the enhanced collaborations its law enforcement and community partners are taking to stem the tide of fraud schemes directed at certain groups of Americans. On Wednesday, high ranking officials of the department, the Federal Trade Commission (FTC), the U.S. Postal Inspection Service (USPIS) and non-profit community groups met to discuss an increase in fraud schemes that intentionally target older Americans and the Latino community.
The public/private group met in anticipation of National Consumer Protection Week (March 1 through 7) and, among a number of continuing efforts, announced that they will be releasing a tip sheet aimed at educating consumers and stopping these targeted schemes.
Consumer fraud affects every U.S. community, but law enforcement has noted an uptick in schemes that prey on the vulnerabilities of specific groups of Americans. Bogus lotteries, mass-marketed “psychic” mailers, and other scams, often perpetrated from foreign soil, have stolen hundreds of millions of dollars from seniors. At the same time, call centers in South America have begun calling and threatening Spanish-speaking residents of the United States, extorting them into paying money they do not owe.
“As we approach National Consumer Protection Week, the Justice Department remains steadfast in our commitment to pursue those who commit consumer fraud, particular the invidious schemes that target older Americans and the Spanish-speaking community,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “We also recognize that the most important thing we can do to stop these schemes is to help educate the consumers who are being targeted so that together we can prevent these schemes from succeeding in the first place.”
The meeting with national and local nonprofit groups focused on the affected populations and offered an opportunity for the law enforcement community to share intelligence gathered through enforcement and for the non-profit groups to provide insight learned from their members. Officials from the Civil Division’s Consumer Protection Branch and FTC distributed materials to organizations in attendance to provide to their constituents in an effort to raise awareness on how to avoid the fraud schemes when confronted with them.
“The FTC works closely with our partners to stop scams,” said Director Jessica Rich of the FTC’s Bureau of Consumer Protection. “We coordinate with law enforcement agencies – like the Department of Justice and the Postal Inspection Service – to investigate scams and shut them down, and we offer free materials to teach people in every community how to avoid fraud and report it.”
“Consumer fraud schemes are growing more sophisticated and we are here to share with you what we have learned so that you can pass word on to your constituents,” said Deputy Assistant Attorney General Jonathan F. Olin of the Civil Division’s Consumer Protection Branch at Wednesday’s meeting with community groups. “Many more fraud schemes are originating overseas in other countries including Canada, Jamaica, Costa Rica, Peru, Argentina, Brazil, the Philippines, Israel and Romania.”
Earlier this month, the department achieved a first in one such case. The Jamaican government extradited its first Jamaican citizen, Damion Barrett, wanted on criminal charges in an international lottery scheme that targeted older Americans. Barrett’s co-defendant, Oneike Barnett, was previously apprehended in August 2013 when he visited the United States, arriving at the airport in Orlando, Florida. Barnett pleaded guilty and was sentenced to serve five years in federal prison in April 2014.
“Lottery scams perpetrated from Jamaica have been increasing over the past several years,” said U.S. Postal Inspector in Charge Ronald J. Verocchio of the USPIS Miami Division, which investigated the Barrett case. “The Jamaican government’s willingness to extradite one of its own citizens provides an important step towards protecting the older Americans that disproportionately make up phony Jamaican lottery victims.”
The department has also made progress in efforts to deter schemes that defraud and extort money from the Spanish-speaking community by obtaining lengthy prison terms for perpetrators. Recent sentences ranging from nine to 17 years in prison have been obtained for defendants convicted of lying to Spanish-speaking consumers about debts they did not, in fact, owe.
Recent actions by the Department of Justice, USPIS and Homeland Security Investigations include:
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http://www.justice.gov/opa/pr/justice-department-files-enforcement-actions-shut-down-psychic-mail-fraud-schemes
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http://www.justice.gov/opa/pr/virginia-resident-indicted-connection-fraudulent-lottery-scheme-based-jamaica
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http://www.justice.gov/opa/pr/south-florida-resident-convicted-connection-international-fraudulent-lottery-scheme
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http://www.justice.gov/opa/pr/jamaican-citizen-sentenced-connection-international-lottery-scheme-defrauded-elderly
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http://www.justice.gov/opa/pr/florida-residents-sentenced-defrauding-and-threatening-spanish-speaking-consumers
Recent actions by the FTC include:
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http://www.ftc.gov/news-events/press-releases/2014/10/ftc-takes-action-stop-phantom-debt-scam-targeted-spanish-speaking
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http://www.ftc.gov/news-events/press-releases/2014/11/ftc-obtains-court-orders-temporarily-shutting-down-massive-tech
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http://www.ftc.gov/news-events/press-releases/2014/06/ftc-continues-crack-down-deceptive-debt-collection-houston-based
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http://www.ftc.gov/news-events/press-releases/2014/10/ftc-halts-fake-medicare-scheme-took-money-seniors-bank-accounts
A tip sheet for consumers to remember when dealing with individuals who contact them by phone, U.S. mail or via the Internet. The tips on scams and how to complain about or report a scam are available in English and in Spanish at http://www.consumer.gov/handouts. More detailed help and advice for consumers is available at FTC.gov.
The Consumer Protection Branch leads the Justice Department’s efforts to protect the health, safety and economic security of the American consumer. The branch, together with its partners in the department’s U.S. Attorney's Offices and in consumer protection agencies, fulfills this mission through civil and criminal enforcement of federal consumer protection statutes across the country. Visit the Civil Division’s website for the latest division news.
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International Arms Traffickers Extradited for Conspiring to Kill Officers or Employees of the United States and to Provide Material Support to a Designated Foreign Terrorist OrganizationRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara for the Southern District of New York and Administrator Michele Leonhart of the Drug Enforcement Administration (DEA) announced today the extradition of Cristian Vintila, 44, Massimo Romagnoli, 43, and Virgil Flaviu Georgescu, 42, international arms traffickers charged with conspiring to sell large quantities of military-grade weaponry to the Fuerzas Armadas Revolucionarias de Colombia (the FARC) – a designated foreign terrorist organization – to be used to kill officers and employees of the United States in Colombia. Vintila, Georgescu, and Romagnoli, all of whom were arrested in December 2014, were extradited from Montenegro yesterday and will be arraigned in front of U.S. District Court Judge Ronnie Abrams later today.
“As alleged, these three men were ready and willing merchants of death, poised to sell sophisticated weapons to a terrorist organization,” said U.S. Attorney Bharara. “It is further alleged that they conspired to sell the weaponry with the understanding that it would be used to shoot down American aircraft and kill American officers. We once again laud the efforts of the DEA to stem the flow of lethal weapons that could be aimed at U.S. officers and to deter weapons traffickers who mean harm to the United States.”
According to the Indictment, which was unsealed in December 2014:
Since at least May 2014, Vintila has been a Romania-based weapons trafficker, Romagnoli has been a Europe-based weapons trafficker, who is able to procure fraudulent end-user certificates (EUCs) for military-grade weaponry, and Georgescu has been a Romania-based weapons broker. Between May and October 2014, Vintila, Romagnoli, and Georgescu conspired to sell an arsenal of weapons, including machine guns and anti-aircraft cannons, with the understanding that the weapons would go to the FARC to be used by FARC against the United States. During a series of recorded telephone calls and in-person meetings, Vintila, Romagnoli and Georgescu agreed to sell the weapons to three confidential sources working with the DEA (the CSs), who represented that they were acquiring these weapons for the FARC. Vintila, Romagnoli and Georgescu agreed to provide these weapons to the CSs with the specific understanding that the weapons would be used to kill officers and employees of the United States and, in particular, to shoot down American helicopters and airplanes. Romagnoli further agreed to provide fraudulent EUCs in order to make the illegal sale of weapons look legitimate.
During their recorded meetings, Vintila and Romagnoli provided the CSs with catalogues of military-grade weapons they were prepared to provide the FARC. Vintila gave the CSs a catalogue of weapons that included pistols, machine guns and other high-powered weaponry, and Romagnoli showed the CSs a catalogue that included automatic weapons and shoulder-fired rocket launchers. Romagnoli additionally showed one of the CSs a sample fraudulent EUC. Vintila, Romagnoli, and Georgescu also discussed the logistics of receiving payment for the weapons from the CSs and delivering the weapons to the FARC.
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The indictment charges Vintila, Romagnoli, and Georgescu, with two separate terrorism offenses:
Count one charges all three defendants with conspiracy to kill U.S. officers or employees. If convicted of count one, the defendants each face a maximum sentence of life in prison. Count two charges all three defendants with conspiracy to provide material support or resources to a designated foreign terrorist organization, the FARC. If convicted of count two, the defendants each face a maximum sentence of 15 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Assistant Attorney General Carlin joined U.S. Attorney Bharara in praising the outstanding investigative efforts of the DEA’s Special Operations Division, the DEA’s Bucharest Country Office, the DEA’s Rome Country Office, the Montenegrin National Police, and the Romanian National Police. The defendants’ arrests and subsequent extradition are also the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the National Security Division of the Department of Justice, and the Justice Department’s Office of International Affairs.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. The case is being prosecuted by Assistant U.S. Attorneys Andrea Surratt and Ilan Tuviah Graff, with assistance provided by Trial Attorney Brenda Sue Thornton of the Justice Department’s National Security Division.
The allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Illinois Federal Court Bars Woman and Her Businesses from Preparing Tax ReturnsRead the Press Release
A federal court in Chicago has permanently barred Laurie G. Helfer, aka Laurie G. Powell, individually and doing business as Laurie’s Freelance & Tax Preparation Services and Tax Lady Laurie Inc., from preparing federal tax returns for others and from operating a tax return business, the Justice Department announced today. The defendant was also ordered to surrender any existing Preparer Tax Identification Number (PTIN) or Electronic Filing Identification Number (EFIN) registered in her name or in any name used for any purpose by Helfer.
The civil injunction order, to which the defendant consented, was signed by Judge Harry D. Leinenweber of the U.S. District Court for the Northern District of Illinois.
According to the complaint, Helfer promised her customers that she could obtain tax refunds for them by amending their tax returns from prior years. Helfer allegedly fabricated expenses from businesses that she concocted and entered those expenses on a Schedule C-Profit or Loss From Business that she filed with her customers’ amended tax returns. The complaint alleged that the expenses offset her customers’ income from prior years and illegally generated a refund. Helfer also prepared original returns for customers during tax-filing season using this same scheme. The complaint further alleged that, in an attempt to avoid detection by the Internal Revenue Service (IRS), Helfer stopped signing the tax returns that she prepared and frequently changed the locations in which she prepared her customers’ tax returns, including various Chicago-area hotel rooms.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Helfer Injunction Order