District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Maine Return Preparer Charged with Preparing False Tax Returns for ClientsRead the Press Release
A grand jury returned an indictment yesterday charging a Maine man with preparing false tax returns for clients and scheming to defraud clients, among other crimes.
According to the indictment, Thierry Musese, a paid return preparer, ran a tax preparation business out of a barbershop he owned and operated in Auburn, Maine. During the 2021 and 2022 tax years, Musese allegedly prepared and filed with the IRS false tax returns on behalf of 17 taxpayers. These tax returns allegedly included false business losses, fuel tax credits and residential energy credits, resulting in tax refunds these clients were not entitled to receive. For the 2023 tax year, Musese allegedly continued to prepare false tax returns for clients even after his electronic filing identification number was revoked by the IRS. According to the indictment, Musese also falsified his own tax returns for 2021 and 2022.
Musese also allegedly defrauded some of his clients by diverting to himself a portion of their tax refunds without their permission. According to the indictment, he provided these clients with copies of their tax returns that differed from the versions he filed with the IRS.
Musese will make his initial court appearance before a U.S. Magistrate Judge for the District of Maine at a later date. If convicted, Musese faces up to three years in prison for each count of filing a false tax return and a maximum penalty of up to 20 years in prison for each count of wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen Kelly of the Justice Department’s Tax Division and U.S. Attorney Darcie N. McElwee for the District of Maine made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Likhitha Butchireddygari of the Tax Division and Assistant U.S. Attorney Daniel Perry for the District of Maine are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Guam Man Sentenced to 10 Years in Federal Prison for Enticement of a MinorRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Ricky Junior O. Quichocho, age 37, from Dededo, Guam, was sentenced by the U.S. District Court of Guam on February 4, 2025 to 10 years imprisonment for Attempted Enticement of a Minor, in violation of 18 U.S.C. § 2422(b). The Court also ordered five years of supervised release following imprisonment and a mandatory $100.00 special assessment fee. Quichocho was ordered to register with the Sex Offender Registry anywhere he resides, is employed, or is in school.
In May of 2024, Air Force Office of Special Investigation and Homeland Security Investigations conducted a joint undercover operation to identify and target individuals who were seeking to contact and engage in sexual activity with minor children. Agents created multiple personas on several social networking applications and posted in online forums.
On May 7, 2024, Ricky Junior O. Quichocho, a civilian employee of a military contractor, initiated contact with the undercover persona. Even though the undercover persona said she was 13 years old, Quichocho continued communication and stated he was interested in “sexual fun.” Throughout the month, Quichocho continued text messages of a sexual nature, indicating various sex acts he wanted to do with the undercover persona. On June 10, 2024, after an agreement to meet with the minor at the Anderson Air Force Base Visitor Control Center parking lot, Quichocho instead was met by Air Force Office of Special Investigations Special Agents. In a subsequent interview, Quichocho admitted to his conduct. A forensic analysis of Quichocho’s cellphone confirmed text messages and photographs sent to the undercover persona.
“Interagency partnerships are the key to fighting child exploitation,” stated United States Attorney Anderson. “This case is another reminder of the dangers faced by children during online activity. We will continue to target offenders who prey on this vulnerable segment of our communities. I applaud HSI and AFOSI in bringing Quichocho to justice.”
“HSI utilizes partnerships with agencies including AFOSI to protect our communities from child predators. By working together, HSI ensures resources are utilized most effectively to seek out and apprehend those who intend to harm our most vulnerable community members,” said Special Agent in Charge Lucy Cabral-DeArmas.
“AFOSI will continue to work alongside our law enforcement partners to root out criminal behavior that threatens the mission, equipment and people of the Department of the Air Force,” said Special Agent Eric Beebe, Commander of AFOSI Detachment 602. “We are dedicated to protecting our Airmen, their families, and the broader Guam community, as Operation Island Fever showcased.”
The case was investigated by Homeland Security Investigations and Air Force Office of Special Investigations Detachment 602.
Assistant United States Attorney Devarup Rastogi prosecuted the case in the District of Guam.
This was a Project Safe Childhood (PSC) case, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit Justice.gov/PSC.
Four Pharmacists Sentenced for Roles in $13M Medicare, Medicaid, and Private Insurer Fraud ConspiracyRead the Press Release
Four pharmacy owners have been sentenced for their roles in a conspiracy to commit health care fraud and wire fraud.
Pharmacist Raef Hamaed, of Maricopa County, Arizona, was sentenced on Jan. 8 to 10 years in prison; pharmacist Tarek Fakhuri, of Windsor, Ontario, Canada, was sentenced on Jan. 13 to seven years in prison; pharmacist Ali Abdelrazzaq, of Macomb County, Michigan, was sentenced on Jan. 15 to two years in prison; and pharmacist Kindy Ghussin, of Greene County, Ohio, was sentenced today to five years and five months in prison.
According to court documents and evidence presented at trial, Hamaed, Fakhuri, Ghussin, and Abdelrazzaq billed Medicare, Medicaid, and Blue Cross Blue Shield of Michigan for prescription medications that they did not dispense at five pharmacies they owned and operated: Eastside Pharmacy, Harper Drugs, and Wayne Campus Pharmacy in Michigan, and Heartland Pharmacy and Heartland Pharmacy 2 in Ohio. The defendants collectively caused over $13 million of loss to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan.
On Sept. 5, 2024, a federal jury convicted Hamaed, Fakhuri, Ghussin, and Abdelrazzaq of conspiracy to commit health care fraud and wire fraud. The jury also convicted Fakhuri of one count of health care fraud. Hamaed was sentenced for his role in the conspiracy at all five pharmacies; Fakhuri was sentenced for his role in the conspiracy at Harper Drugs, Wayne Campus Pharmacy, and Heartland Pharmacy; Ghussin was sentenced for his role in the conspiracy at Wayne Campus Pharmacy and both Heartland pharmacies; and Abdelrazzaq was sentenced for his role in the conspiracy at Wayne Campus Pharmacy.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office, and Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI Detroit Field Office and HHS-OIG investigated the case.
Trial Attorneys Claire Sobczak Pacelli, Kelly M. Warner, and S. Babu Kaza of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
California CPA Indicted for Filing False Tax ReturnsRead the Press Release
A grand jury in San Francisco returned an indictment yesterday charging a California man with filing false tax returns with the IRS.
According to the indictment, Michael M. Gilbert, of San Rafael, filed false tax returns for himself and two business entities he controlled. Gilbert, a Certified Public Accountant since 1985, allegedly underreported the total income his accounting and tax preparation business, M.M. Gilbert & Company Inc. (M.M. Gilbert), received during the years 2017 through 2020. Gilbert allegedly solicited payments from clients of M.M. Gilbert for “tax strategies” and “donations,” among other things, which the clients paid to White Mountain Properties Inc. (White Mountain), another entity Gilbert controlled. Gilbert allegedly did not report these payments as income on White Mountain’s 2017 through 2021 business tax returns. According to the indictment, in 2020 and 2021, Gilbert also transferred more than $5 million from White Mountain to himself and then did not report that income on his individual tax returns.
Gilbert is scheduled for his initial court appearance on Feb. 19 before U.S. Magistrate Judge Laurel Beeler for the Northern District of California. If convicted, Gilbert faces a maximum penalty of three years in prison for each count of filing a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen Kelly of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Julia M. Rugg and Patrick Burns of the Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Pleads Guilty in Connection with $17M Medicare Hospice Fraud and Home Health Care Fraud SchemesRead the Press Release
A California man pleaded guilty today to health care fraud, aggravated identity theft, and money laundering in connection with a years-long scheme to defraud Medicare of more than $17 million through sham hospice companies and his home health care company.
According to court documents, Petros Fichidzhyan, 43, of Granada Hills, engaged in a scheme with others to operate a series of sham hospice companies. Fichidzhyan, along with co-schemers, impersonated the identities of foreign nationals to use as the purported owners of the hospices — including using the identities to open bank accounts and sign property leases — and submitted false and fraudulent claims to Medicare for hospice services that were not medically necessary and not provided. In submitting the false claims, Fichidzhyan and his co-schemers also misappropriated the identifying information of doctors, claiming to Medicare that the doctors had determined hospice services were necessary, when in fact the purported recipients of these hospice services were not terminally ill and had never requested nor received care from the sham hospices. As a result of the scheme, Medicare paid the sham hospices nearly $16 million. Fichidzhyan personally received nearly $7 million of the proceeds from the fraud scheme, including more than $5.3 million in transfers to his personal and business bank accounts, which were laundered through a dozen shell and third-party bank accounts. Fichidzhyan additionally admitted to wrongfully obtaining more than $1 million for his home health care agency through the fraudulent use of a doctor’s name and identifying information in certifying Medicare beneficiaries for home health care, which he attempted to cover up by paying the doctor $11,000.
Fichidzhyan pleaded guilty to health care fraud, aggravated identity theft, and money laundering. He is scheduled to be sentenced on April 14 and faces a mandatory penalty of two years in prison on the aggravated identity theft charge, a maximum penalty of 10 years in prison on the health care fraud charge, and a maximum penalty of 20 years in prison on the money laundering charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Today’s guilty plea is the most recent conviction in the Justice Department’s ongoing effort to combat hospice fraud in the greater Los Angeles area. Last year, a doctor was convicted at trial for his role in a scheme to bill Medicare for hospice services patients did not need, and two other defendants were sentenced for their roles in a hospice fraud scheme.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office, and Acting Special Agent in Charge Diane N. Vu of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Los Angeles Regional Office made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorneys Eric C. Schmale and Sarah E. Edwards of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Justice Department Announces Formation of Task Force to Combat Anti-SemitismRead the Press Release
Pursuant to President Trump’s Executive Order on Additional Measures to Combat Anti-Semitism, the Justice Department announced today the formation of a multi-agency Task Force to Combat Anti-Semitism. The Task Force’s first priority will be to root out anti-Semitic harassment in schools and on college campuses.
In addition to the Department of Justice, the Task Force will include representatives from the U.S. Department of Education, U.S. Department of Health and Human Services, and other agencies as it develops. The Task Force will be coordinated through the Department’s Civil Rights Division.
“Anti-Semitism in any environment is repugnant to this Nation’s ideals,” said Senior Counsel to the Assistant Attorney General for Civil Rights Leo Terrell, who will be heading the Task Force. “The Department takes seriously our responsibility to eradicate this hatred wherever it is found. The Task Force to Combat Anti-Semitism is the first step in giving life to President Trump’s renewed commitment to ending anti-Semitism in our schools.”
If you have been discriminated against, you can file a complaint with the Civil Rights Division, at Contact the Civil Rights Division | Department of Justice (https://civilrights.justice.gov). President Trump’s Executive Order can be found here: Additional Measures to Combat Anti-Semitism – The White House.
Texas Man Admits to Making Violent Threats Against Sikh Nonprofit OrganizationRead the Press Release
A man from Dallas, Texas, admitted to a hate crime and making interstate threats against the employees of a Sikh nonprofit organization.
Bushan Athale, 49, pleaded guilty today to one count of interfering with federally protected activities through the threatened use of a dangerous weapon and one count of transmitting an interstate threat to injure another person.
“Threats of violence have no place in our society,” said Acting U.S. Attorney Vikas Khanna for the District of New Jersey. “Every individual in this country must be free to practice their religion without fear of violence or persecution. We will continue to ensure the safety of our communities by prosecuting those who threaten our basic American freedoms.”
“Every citizen has the right to feel safe, secure, and free from fear of violence or hate,” said Special Agent in Charge Wayne A. Jacobs of the FBI Philadelphia Field Office. “We are deeply grateful to our law enforcement and community partners who stand with us daily. Together, we remain steadfast in pursuing those who threaten the safety and well-being of the people we are sworn to protect.”
According to court documents and statements made in court, on or about Sept. 17, 2022, Athale called the main number of an organization that advocates for the civil rights of Sikh individuals within the United States. Over the course of the next hour, Athale left seven voicemails expressing hatred toward Sikh individuals working at this same organization and threatening to injure or kill these individuals with a razor.
Athale’s voicemails, which were filled with violent imagery and obscenity, contained references to places, people, and tenets that are particularly significant within the Sikh religion. Among other things, Athale stated his intention to “catch” the Sikhs at Organization 1, forcibly shave their “top and bottom hair,” use a “razor” to “cut” their hair and “make” them bald, “make” them smoke and eat tobacco, and “show [them] the heaven.”
On March 21, 2024, Athale again called the same Sikh organization and left two more voicemails. In these voicemails, Athale again used violent, sexual imagery to express his hatred toward Sikhs as well as Muslims and spouted antisemitic rhetoric.
During his guilty plea, Athale also admitted to additional conduct reflecting his long history of making violent threats rooted in religious animus. For example, Athale admitted that on Nov. 6, 2021 and Nov. 7, 2021, he had sent electronic messages to a former co-worker, in which he stated that he “hate[d] Pakistan” and “hate[d] Muslims.” Athale wrote, “I hate you, I just don’t know how to kill your whole family including you? Tell me??? I will figure it out […] Probably I will hire a Jew, they will be most happy.”
Athale also admitted that, from May 28, 2024 to May 31, 2024, he had sent threatening electronic messages to a recruiter who he believed to be a Muslim. Athale wrote statements such as “you will be dead, get out [expletive] Muslim” and “If you dont [sic] back off you are killed.”
Athale is charged with interfering with federally protected activities which carries a maximum penalty of 10 years in prison and with transmitting an interstate threat which carries a maximum penalty of five years in prison. Both charges also carry a maximum penalty of up to a $250,000 fine. The defendant also may be sentenced to a term of supervised release after any sentence served. Athale is scheduled to be sentenced June 3. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Deputy Assistant Attorney General Kathleen Wolfe of the Justice Department’s Civil Rights Division announced the case.
The FBI Philadelphia Field Office investigated the case.
Assistant U.S. Attorneys Sara A. Aliabadi and Jason M. Richardson for the District of New Jersey and Trial Attorney Eric Peffley of the Justice Department’s Civil Rights Division are prosecuting the case.
Houston Man Indicted for Employment Tax CrimesRead the Press Release
A federal grand jury in Houston returned an indictment today charging a Texas man with not paying to the IRS taxes that his company withheld from employees’ paychecks.
According to the indictment, Joseth Limon, of Harris County, allegedly owned Platinum Employment Group Inc., a company that supplied laborers to businesses in the Houston area. The indictment alleges that between 2016 and 2018, Platinum paid its employees over $3.5 million in wages and withheld over $450,000 in taxes from their paychecks. During that period, however, Limon allegedly did not pay the IRS those withheld taxes and did not file any employment tax returns, as required by law.
If convicted, Limon faces a maximum penalty of five years in prison and a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Curtis Weidler of the Tax Division and Assistant U.S. Attorney Shirin Hakimzadeh for the Southern District of Texas are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Sues to Block Hewlett Packard Enterprise’s Proposed $14 Billion Acquisition of Rival Wireless Networking Technology Provider Juniper NetworksRead the Press Release
Note: View the complaint here.
The Justice Department today sued to block Hewlett Packard Enterprise Co.’s (HPE) proposed $14 billion acquisition of rival wireless local area network (WLAN) technology provider Juniper Networks Inc. (Juniper). HPE and Juniper are the second- and third- largest providers, respectively, of enterprise-grade WLAN solutions in the United States. The complaint, filed in the Northern District of California, alleges that the proposed transaction would eliminate fierce head-to-head competition between the companies, raise prices, reduce innovation, and diminish choice for scores of American businesses and institutions, in violation of Section 7 of the Clayton Act.
“HPE and Juniper are successful companies. But rather than continue to compete as rivals in the WLAN marketplace, they seek to consolidate — increasing concentration in an already concentrated market,” said Acting Assistant Attorney General Omeed A. Assefi of the Justice Department's Antitrust Division. “The threat this merger poses is not theoretical. Vital industries in our country — including American hospitals and small businesses — rely on wireless networks to complete their missions. This proposed merger would significantly reduce competition and weaken innovation, resulting in large segments of the American economy paying more for less from wireless technology providers.”
WLAN technology — which includes hardware, software, and advanced artificial intelligence — is critical for the modern workplace. Millions of Americans today create and share company resources and access the internet from wireless-enabled devices. Retail employees wirelessly process payments and log inventory. Doctors access medical records on phones and tablets and track life-saving patient care on the go. University students take notes on their laptops and access course materials from their dorm rooms. Wireless networking is the primary means by which many employees connect to their employer’s computer network and the internet.
As alleged in the complaint, Juniper has been a disruptive force that has grown rapidly from a minor player to among the three largest enterprise-grade WLAN suppliers in the U.S. Juniper has also introduced innovative tools that have materially decreased the cost of operating a wireless network for many customers. This competitive pressure has forced HPE to discount its offerings and invest in its own innovation. HPE recognized and tracked Juniper’s growing significance and engaged in a campaign, including mandatory training for its engineers and salespeople, to “beat” Juniper when competing for contracts. Indeed, just a month before the proposed acquisition was announced, front-line HPE salespeople were concerned that “[t]he Juniper threat [was] dire” because in dozens of opportunities Juniper was “trying to unseat” HPE. Senior HPE executives shared this view; one former HPE executive reminded his team that “there are no rules in a street fight” with Juniper and encouraged them to “kill” Juniper when going head-to-head for sales opportunities.
Now, HPE seeks to acquire its smaller, innovative rival. The proposed transaction between HPE and Juniper, if allowed to proceed, would further consolidate an already highly concentrated market — and leave U. S. enterprises facing two companies commanding over 70% of the market: the post-merger HPE and market leader Cisco Systems Inc. This substantial lessening competition in a critically important technology market poses the precise threat that the Clayton Act was enacted to prevent.
Hewlett Packard Enterprise Company is headquartered in Spring, Texas. Its WLAN-focused business unit is located in Santa Clara, California.
Juniper Networks Inc. is headquartered in Sunnyvale, California.
Justice Department Resolves Lawsuit Against Pennsylvania Township and Sewage Authority over Allegations They Substantially Burdened Amish Residents’ Religious ExerciseRead the Press Release
Note: View the complaint here and the proposed consent order here.
The Justice Department today announced an agreement with Sugar Grove Township, Pennsylvania, and the Sugar Grove Area Sewage Authority (SUGASA), to resolve allegations that they violated the Religious Land Use and Institutionalized Persons Act (RLUIPA) by enacting and enforcing two ordinances against Old Order Amish residents: one mandating that certain households connect to the Township’s municipal sewage system, which requires the use of an electric grinder pump, and one banning privies on property intended for permanent residence. The lawsuit alleges that these acts substantially burdened Old Order Amish residents’ religious exercise, which restricts the use of electricity and requires adherents remain separate and apart from the modern world, and that the Township and SUGASA lacked a compelling reason for doing so.
“The Religious Land Use and Institutionalized Persons Act protects the rights of religious communities across the country, including the Old Order Amish, from the enforcement of land use rules that unreasonably burden their religious exercise,” said Deputy Assistant Attorney General Kathleen Wolfe of the Civil Rights Division. “The Justice Department is proud to support this longstanding Amish community’s religious rights.”
“No one should have to choose between keeping their home or practicing their faith,” said Acting U.S. Attorney Troy Rivetti for the Western District of Pennsylvania. “This office will continue to defend religious communities against zoning ordinances that penalize them for adhering to their religious beliefs.”
The proposed consent order, which was filed today in the Western District of Pennsylvania and must still be approved by the court, would resolve a lawsuit the United States also filed today alleging that Sugar Grove Township and SUGASA violated RLUIPA by enacting the connection ordinance over Old Order Amish religious objections, enforcing the ordinances against Old Order Amish residences, and imposing municipal liens and fines against Old Order Amish property owners because the property owners did not comply with the ordinances.
As part of the consent order, the Township and SUGASA will exempt certain Old Order Amish households from mandatory connection to the municipal sewage system, permit Old Order Amish residents to use privies on their private properties, and forgive any outstanding liens, fines, or other monetary penalties against Old Order Amish households for prior noncompliance with the two ordinances. The consent order also requires the Township and SUGASA to train its officials and employees on RLUIPA’s provisions, establish a procedure for receiving and resolving RLUIPA complaints, and provide reports to the United States.
RLUIPA is a federal law that protects persons and religious institutions from unduly burdensome or discriminatory land use regulations. More information about RLUIPA and the department’s efforts to enforce it can be found on the Place to Worship Initiative’s webpage.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the online RLUIPA complaint portal.
Gang-Affiliated Massachusetts Man Sentenced to 5 Years for Trafficking Fentanyl into MaineRead the Press Release
PORTLAND, Maine: A Massachusetts man was sentenced today in U.S. District Court in Portland for distributing and possessing with intent to distribute controlled substances.
Chief U.S. District Judge Lance E. Walker sentenced Jervis Almanzar, 20, to 60 months in prison to be followed by four years of supervised release. Almanzar pleaded guilty on August 28, 2024.
According to court records, in January 2023, a confidential source arranged to buy fentanyl from an FBI target and agreed on a location in Maine to conduct the transaction. The source purchased a total of approximately 300 grams of fentanyl over two transactions, and Almanzar delivered the drugs each time. Almanzar is a known and admitted Trinitarios gang member.
The FBI investigated the case with assistance from the Augusta Police Department.
Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Former California Police Officer Convicted on Eight Counts of Sexually Assaulting Women While on DutyRead the Press Release
A federal jury in Fresno, California, convicted yesterday former Sanger, California, Police Department officer J. DeShawn Torrence, 42, of eight counts of deprivation of constitutional rights under color of law for sexually assaulting four women whom he encountered during the course of his official duties. The jury found that the offenses included kidnapping, aggravated sexual abuse, and attempted aggravated sexual abuse, and caused bodily injury.
“Law enforcement officers are entrusted with great power to protect the public and keep them safe from harm. This officer’s crimes were an egregious breach of that trust and an appalling abuse of power, as he repeatedly preyed on the women in his community and violated their civil rights,” said Acting U.S. Attorney Michele Beckwith for the Eastern District of California. “We stand ready to investigate and prosecute such crimes with all the tools we have available.”
“The FBI Sacramento Field Office is grateful to the brave victims who came forward and trusted us to investigate the allegations of sexual abuse at the hands of a police officer,” said Special Agent in Charge Sid Patel of the FBI Sacramento Field Office. “The FBI is deeply committed to working with our partners to thoroughly investigate such cases to protect the American people and preserve public trust in law enforcement.”
The evidence at trial proved that Torrence sexually assaulted four women. He kidnapped a 21-year-old woman who was walking to a store to buy groceries for her young children, drove her outside of town in his police car, and sexually assaulted her at an isolated dead end. Torrence forcibly raped a second victim, a 67-year-old woman, after following her into her home during a DUI investigation. With a third victim, Torrence showed up at her door in his police uniform after midnight, entered her apartment, pinned her against the kitchen counter, and sexually assaulted her. Torrence showed up multiple times at the home of a fourth victim, a domestic violence victim, supposedly to investigate a prior domestic violence incident. During those follow up visits, Torrence forced the victim to expose sensitive parts of her body for no legitimate reason, and he sexually assaulted her. The jury also heard testimony that Torrence sexually assaulted a fifth woman while acting in his capacity as a police officer.
Five of the counts each carry a maximum penalty of life in prison and a $250,000 fine. The three remaining counts each carry a maximum penalty of one year in prison and a fine of up to $100,000. Torrence is scheduled to be sentenced on May 7.
Deputy Assistant Attorney General Kathleen Wolfe of the Justice Department’s Civil Rights Division made the announcement.
The FBI Sacramento Field Office investigated the case, with assistance from the Fresno County Sheriff’s Office.
Special Litigation Counsel Michael J. Songer of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Karen Escobar for the Eastern District of California are prosecuting the case.
Florida Businessman Indicted for Tax EvasionRead the Press Release
A federal grand jury in Jacksonville, Florida, returned an indictment yesterday charging a Florida businessman with tax evasion, not filing a tax return and not paying taxes.
According to the indictment, Phillip Mak, of Jacksonville, was a self-employed businessman who from 2008 through 2020 earned approximately $10.3 million in income. During that same period, Mak allegedly did not pay any federal taxes and, except for two years, did not file tax returns. The IRS allegedly assessed approximately $1.9 million in outstanding taxes, penalties and interest against Mak for tax years 2008, 2009, 2012-2015 and 2019-2020.
Instead of paying what he owed, Mak allegedly attempted to shield his assets from the IRS by transferring $1 million in cash to his domestic partner’s bank accounts. In addition, the indictment alleges that Mak, after being interviewed by IRS investigators, transferred ownership of his home to his domestic partner’s trust, created a nominee entity and began depositing his income into a bank account held in the name of that entity.
In total, Mak is alleged to have caused a tax loss to the IRS of more than $1.92 million.
If convicted, Mak faces a maximum sentence of five years in prison for tax evasion and a maximum sentence of one year in prison for each charge of failure to file a tax return and failure to pay tax. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Isaiah Boyd and Michael Jones of the Tax Division and Assistant U.S. Attorney John Cannizzaro for the Middle District of Florida are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Courts Authorize IRS “John Doe” Summonses to Trident Trust EntitiesRead the Press Release
The U.S. District Court for the Northern District of Georgia entered an order earlier this week authorizing the IRS to serve John Doe summonses on TT (USA) Holdings Inc.; Trident Corporate Services Inc. and Trident Fund Services Inc., entities that are members of a multinational group of affiliated companies generally operating under the trade name “Trident Trust” and collectively referred to as the “Trident Trust Group.”
Separately, on Dec. 18, 2024, the U.S. District Court for the District of South Dakota entered an order, unsealed on Jan. 21, authorizing service of a similar John Doe summons on Trident Trust Company (South Dakota) Inc. The United States also previously obtained approval in the U.S. District Court for the Southern District of New York for the IRS to serve John Doe summonses on a different affiliate entity of the Trident Trust Group, as well as to third party financial service companies, banks and courier services that may have information about Trident Trust Group’s U.S. taxpayer clients.
The United States is not alleging that any of the entities engaged in wrongdoing. Rather, the IRS uses John Doe summonses to obtain information about possible violations of internal revenue laws by individuals whose identities are unknown. These summonses seek information about U.S. individuals who may have used the Trident Trust Group’s services to underreport their worldwide income and conceal their ownership of certain foreign assets that U.S. individuals are required to report to the U.S. government.
“The Justice Department and the IRS are dedicated to unearthing tax evasion that uses foreign bank accounts and offshore shell corporations,” said Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “We will use the many tools available to us, including John Doe summonses like the ones authorized by the courts here, to ensure that taxpayers are fully meeting their responsibilities.”
Federal law requires certain individual taxpayers, including all U.S. citizens and residents with gross annual income above the reporting threshold, to pay taxes on all income earned worldwide. They must also disclose certain foreign financial accounts, assets and controlled foreign corporations. Failure to report these offshore arrangements can result in serious civil and criminal consequences.
The government’s petitions allege that Trident Trust Group is an offshore service provider operating in nearly 30 countries worldwide, and it has provided corporate, trust and fund administration services for over 40 years. The petitions further allege that Trident Trust Group offers services that enable offshore account and entity concealment, like mail forwarding and retention, and ready-to-use “shelf” companies. For example, the petitions allege that Trident Trust Group personnel have listed themselves as the founders, directors and officers of thousands of Panamanian companies to help their U.S. clients potentially conceal their interests in and income from those foreign entities.
A declaration from an IRS revenue agent that accompanied the petitions alleges that at least nine U.S. taxpayers used Trident Trust Group’s services to avoid compliance with U.S. tax laws. The declaration further alleges that the IRS learned of this noncompliance through the Offshore Voluntary Disclosure Program, a program that allowed U.S. taxpayers to voluntarily disclose foreign accounts or entities used to evade tax in exchange for settling their civil liabilities on fixed terms.
These orders authorize the IRS to issue summonses to TT (USA) Holdings Inc.; Trident Corporate Services Inc.; Trident Fund Services Inc. and Trident Trust Company (South Dakota) Inc seeking information about U.S. taxpayer clients who may have used the services of the entities and the broader Trident Trust Group to establish, maintain, operate or control any foreign financial account or other foreign asset; any foreign corporation, company, trust, foundation or other legal entity or any foreign or domestic financial account or other asset in the name of such foreign entity from 2014 through 2023. By obtaining these records, the IRS expects to be able to identify clients of the Trident Trust Group to investigate whether they potentially used the group’s services to avoid or evade federal taxes.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tax Division Attorneys Christina T. Lanier and Brij B. Patnaik are handling the case in the U.S. District Court for the District of South Dakota; and they, along with Elisabeth K. Kryska of the Tax Division, are handling the case in the Northern District of Georgia. Assistant U.S. Attorney Anthony J. Sun for the Southern District of New York is handling the case in the U.S. District Court for the Southern District of New York.
Trident Trust Order (NDGA).pdf Trident Trust petition (NDGA).pdf Trident Trust order (DSD).pdf Trident Trust Petition (DSD).pdf Trident Trust Declaration (DSD)_0.pdfCalifornia Food Distributor Settles False Claims Act Liability Relating to Self-Disclosure of Small Business Contracting ViolationsRead the Press Release
GS Foods Group Inc. (GS Foods), headquartered in Ontario, California, has agreed to pay $949,696.90 to resolve False Claims Act liability in connection with bidding on contracts reserved for small businesses when GS Foods did not qualify as a small business. The contracts involved supplying food to facilities operated by the Federal Bureau of Prisons and U.S. Immigrations and Customs Enforcement. In connection with the settlement, the United States acknowledged that GS Foods took significant steps entitling it to credit for cooperating with the government.
“Businesses that participate in federal small business contracting programs must ensure that they comply with applicable rules and regulations relating to eligibility,” said Acting Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “When businesses run afoul of small business contracting requirements, they can mitigate the consequences by making timely self-disclosures, cooperating with investigations, and taking appropriate remedial measures.”
The settlement resolves allegations that, between Oct. 1, 2018 and March 8, 2024, GS Foods did not qualify as a small business because of its affiliation with certain other companies. The United States alleged that subsidiaries of GS Foods, GoodSource Solutions Inc., and Dori Foods Inc., bid on contracts and orders that had been expressly reserved, or set-aside, exclusively for small businesses. As a result, GoodSource Solutions and Dori Foods allegedly obtained contracts for which they were not eligible. GS Foods timely self-reported the conduct to the Department of Justice, Office of Inspector General (DOJ-OIG), and cooperated with the Justice Department’s investigation, including, for example, by identifying key witnesses and documents and making employees available for interviews. The company also took remedial measures, including updating its code of conduct, establishing an Ethics and Compliance Management Committee, establishing the position of Chief Compliance Officer, and developing and implementing additional employee training.
“It is a disservice to small businesses when contracts that were expressly set aside to create opportunities for small businesses are awarded to ineligible organizations,” said Special Agent in Charge Andrew Hartwell of DOJ-OIG, Fraud Detection Office. “The Department of Justice Office of the Inspector General is committed to playing our part to maintain the integrity of small business contracts.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and DOJ-OIG. Fraud Section Senior Trial Counsel Jonathan H. Gold handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Former West Virginia Supervisory Correctional Officer Found Guilty Following Jury Trial on Conspiracy and Obstruction ChargesRead the Press Release
Following a four-day jury trial, Chad Lester, a former lieutenant at the Southern Regional Jail in Beaver, West Virginia, was found guilty yesterday of conspiracy, witness tampering, and giving false statements to the FBI. The charges arose out of a staff assault of an inmate named Quantez Burks, who later died from injuries he suffered during the assault. Seven correctional officers pleaded guilty in connection with the assault of Burks; several of those former officers testified against the defendant during the trial. The defendant faced charges related to his efforts to obstruct the investigation into the assault.
According to the evidence presented at trial, the defendant conspired with other officers at the Southern Regional Jail to tamper with witnesses to cover up the assault of Burks. The evidence showed the defendant directed a subordinate correctional officer to leave truthful information out of his report related to the circumstances of Burks’ death. The defendant directed another officer to include in his report false information about Burks. The defendant told a third officer that he would beat him if he discovered that the officer was providing information about the assault to investigators. Finally, the defendant provided false information relating to the assault of Burks to the FBI during an interview.
Lester is scheduled for sentencing on April 16 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors.
The FBI Pittsburgh Field Office, Charleston Resident Agency, investigated the case.
Deputy Chief Christine M. Siscaretti and Trial Attorney Tenette Smith of the Justice Department’s Civil Rights Division prosecuted the case in partnership with the U.S. Attorney’s Office for the Southern District of West Virginia.
Former Alabama Jail Administrator Charged with Federal Civil Rights Violation, Falsifying a Report and Making False Statements to InvestigatorsRead the Press Release
A federal grand jury in Montgomery, Alabama, unsealed an indictment yesterday charging former Crenshaw County Jail Administrator Christian Alexander Porter, 33, with assaulting a handcuffed and compliant inmate at Crenshaw County Jail. Porter was also charged with falsifying a report and making false statements to state and federal investigators.
The indictment alleges that, on or about Oct. 12, 2021, Porter used unreasonable force on a pre-trial detainee while acting under color of law in violation of the 14th Amendment and falsified a use of force report to cover up his assault of the victim. The indictment also charges Porter with making false statements to state and federal investigators on Nov. 18, 2021, and June 28, 2022, respectively.
Porter faces maximum penalties of 10 years in prison for the federal civil rights violation, 20 years in prison for falsifying the report and making false statements to state investigators, and five years in prison for making false statements to federal investigators. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Kathleen Wolfe of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Kevin P. Davidson for the Middle District of Alabama and Special Agent in Charge Paul Brown of the FBI Mobile Field Office made the announcement.
The FBI Mobile Field Office is investigating the case.
Assistant U.S. Attorney Eric Counts for the Middle District of Alabama and Trial Attorney Lia Rettammel of the Civil Rights Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Appling County man sentenced to nearly 12 years in prison for drug traffickingRead the Press Release
BRUNSWICK, GA: An Appling County man has been sentenced to federal prison after pleading guilty to a drug trafficking charge.
Cornelius Denzel Butler, a/k/a “Big Juicy,” 30, of Baxley, Georgia, was sentenced to 140 months in prison after pleading guilty to Possession with Intent to Distribute Methamphetamine, Cocaine, Crack Cocaine, and Marijuana, said Tara M. Lyons, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Butler to serve three years of supervised release upon completion of his prison term. There is no parole in the federal system.
“Every community deserves protection from those who would profit from the sale of dangerous illegal drugs,” said Acting U.S. Attorney Lyons. “We’re grateful to our law enforcement partners for their work in identifying and removing drug traffickers from our neighborhoods.”
As described in court documents and testimony, investigators from the Appling County Sheriff’s Office and the Drug Enforcement Administration in 2023 identified Butler as a drug distributor operating in the Baxley area. Investigators searched Butler’s residence and seized large amounts of methamphetamine, cocaine, crack cocaine, and marijuana, along with multiple firearms, cash, and paraphernalia associated with drug trafficking.
As part of his plea agreement, Butler forfeited five handguns, an assault-style rifle, and nearly $20,000 in cash.
“This case represents the continued commitment of the DEA to identify and hold accountable those who engage in the distribution of dangerous drugs,” said Jae W. Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “Keeping our communities safe is our highest priority.”
The case was investigated by the Appling County Sheriff’s Office and the Drug Enforcement Administration, and prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorney Bradley R. Thompson.
Owners of Florida Labor-Staffing Companies Sentenced for Tax and Immigration Fraud and Money LaunderingRead the Press Release
Two Ukrainian nationals who were extradited from Thailand to the United States in September 2024 were sentenced today on charges related to labor-staffing companies they operated in Florida. Oleg Oliynyk and Oleksandr Yurchyk were each sentenced to 15 years in prison for conspiracy to defraud the United States and conspiracy to commit money laundering.
According to court documents, Oliynyk, Yurchyk and others owned and operated a series of labor-staffing companies in South Florida — including Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC and Tropical City Group LLC — from at least April 2008 and August 2021. Through these staffing companies, Oliynyk, Yurchyk and co-defendants Oleksandr Morgunov, Mykhaylo Chugay and Volodymyr Ogorodnychuk facilitated the employment of non-resident aliens in the hospitality industry who were not authorized to work in the United States and helped evade the assessment and collection of more than $25 million of federal income and employment taxes.
In addition to the term of imprisonment, U.S. District Court Judge Jose E. Martinez ordered Oliynyk and Yurchyk to each serve three years of supervised release, pay $10,863,233.05 in restitution to the United States and to forfeit $11 million.
Oliynyk and Yurchyk are the latest defendants sentenced as part of Operation RoomKey, a joint criminal investigation initiative led by the Tax Division, the U.S. Attorney’s Office for the Southern District of Florida, Homeland Security Investigations (HSI) and IRS Criminal Investigation (IRS-CI).
Co-defendant Chugay, was convicted at trial in June 2022, and was sentenced in August 2022 to more than 24 years in prison. Co-defendants Morgunov and Ogorodnychuk each pleaded guilty and were sentenced to 96 months in prison and 48 months in prison, respectively.
In March 2022, Mikus Berzins, former City of Key West Police Officer Igor Kasyanenko, Roman Riabov and Andrejs Kozlovs each pleaded guilty to their crimes in the operation of the labor staffing company, Phoenix ADB Services Inc. (Phoenix ADB), which, according to court records, facilitated the employment of aliens without work authorization.
In May 2022, the court sentenced Igor Kasyanenko and Riabov to 22 months and 18 months in prison, respectively, for their roles in the tax and immigration conspiracy. The court also sentenced Berzins and Kozlovs to 28 months and 12 months in prison, respectively, for knowingly hiring ten or more aliens who were not authorized to work in the United States. Later, in September 2023, Nataliya Vasylivna Kasyanenko, a former housekeeping manager at a large Key West hotel, was sentenced for participating in the tax and immigration conspiracy related to the operation of Phoenix ADB.
Batyr Myatiev, the owner and operator of two labor staffing companies, AmeriHos LLC and Golden Sands Management LLC, pleaded guilty in March 2023 and was sentenced in June 2023 to 32 months in prison. According to court records, Myatiev’s labor staffing companies caused a tax loss to the United States of more than $3.5 million and facilitated the employment of aliens without work authorization.
In July 2023, Eka Samadashvili and Davit Pavliashvili were sentenced for their respective roles in the operation of several labor staffing companies, including PSEB Services JD Inc., Paradise Hospitality Solutions LLC, Paradise Hospitality Group LLC, Paradise Hospitality Inc. and HBSM Corp. According to court records, these labor staffing companies caused a tax loss to the United States of more than $8.4 million and facilitated the employment of non-resident aliens in hotels, bars and restaurants in Key West and elsewhere who were not authorized to work in the United States.
Finally, in March 2024, Petr Sutka was sentenced to four years in prison for his role in operating a series of labor staffing companies — including PSEB Specialty Service Inc., Perfect Service Excellent Benefits Services Inc., Starline Hospitality Inc., Norbert Janitorial Service Inc., E.S.F. Services Inc. and Expert Services F.S. Inc. — which, according to court records, caused a tax loss to the United States of more than $3.5 million and facilitated the employment of aliens without work authorization. In April 2024, Sutka’s co-defendants, Zdenek Strnad and Vasil Khatiashvili, were each sentenced to more than three years, respectively, for their roles in the tax and immigration conspiracy.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Acting U.S. Attorney Michael S. Davis for the Southern District of Florida made the announcement.
HSI and IRS-CI are investigating the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition of Oliynyk and Yurchyk. The United States also thanks the Embassy of the United States in Thailand - Regional Security Office and Thai law enforcement partners including the Royal Thai Police and Office of the Attorney General for their valuable assistance.
Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft, Matthew C. Hicks and Wilson Rae Stamm of the Tax Division and Senior Litigation Counsel Chris Clark for the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the case.
New Jersey Return Preparer Charged with Preparing False Tax Returns and Obstructing the IRSRead the Press Release
An indictment was unsealed last week charging a New Jersey return preparer with preparing and filing 55 false income tax returns on behalf of clients and obstructing the IRS.
According to the indictment, from at least 2018 through 2023, Christopher Demba, of Hillsborough, owned and operated Demba & Associates CPA LLC, a return preparation business. Demba allegedly prepared returns for clients that claimed false deductions, credit carryforwards or fraudulently recategorized income to claim expenses that would otherwise be disallowed. The indictment further alleges that Demba obstructed the IRS by providing false working papers to IRS personnel in an attempt to justify some of the claims made on returns he prepared for clients.
If convicted, Demba faces a maximum penalty of three years in prison for each count as well as a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Mark McDonald and Alexis Hughes of the Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Omaha Men Sentenced for Pharmacy Burglaries and Possession of FirearmsRead the Press Release
United States Attorney Susan Lehr announced that Latjor Gony and Jal Thong, both age 29, of Omaha, Nebraska, were sentenced on January 23, 2025, in federal court in Lincoln, Nebraska for burglarizing pharmacies and Gony was also sentenced for possessing firearms by a prohibited person. United Sates District Judge Susan M. Bazis sentenced both Gony and Thong to 100 months’ imprisonment. Gony was also ordered to pay $42,489.01 in restitution to the victims and Thong was ordered to pay $46,929.53 in restitution. There is no parole in the federal system. After Gony’s release from prison, he will begin a 6-year term of supervised release. After Thong’s release from prison, he will begin a 3-year term of supervised release.
Between October 23, 2021, and December 22, 2021, pharmacies in central Nebraska towns were burglarized. Pharmacies in Ravenna, Holdrege, Minden, Alma, and Loup City were victimized. During each burglary, one to three individuals, dressed head to toe in hoodies, sweatpants, gloves, and masks, broke through the front door, entered the pharmacy, stole narcotics, then left within a few minutes. Evidence gathered by law enforcement agencies showed that Gony and Thong were the burglars.
Several different controlled substances were taken during the burglaries, to include hydrocodone, oxycontin, oxycodone HCL, oxycodone acetaminophen, Adderall, hydromorphone, and promethazine syrup. A distribution quantity of narcotics was stolen during the course of these burglaries.
Gony’s and Thongs phone records were examined by law enforcement. The records showed that Gony and Thong communicated with one another as well as with customers about the sale and distribution of controlled substances taken from the pharmacies. Data from the burglars’ iCloud, cell phone, and social media accounts included photos and videos of controlled substances taken from the pharmacies. Investigators found cell tower data showing that Gony’s and Thong’s phones were located in some of the towns at, or around the time that burglaries took place. Investigators also found images of Gony possessing firearms. From these images, investigators identified at least two different firearms, one of which came from a shooting range, and another was retrieved by Omaha Police officers several months later during a traffic stop. Investigators also found images of the burglars consuming controlled substances stolen in the burglaries.
Gony, who was on parole at the time of these crimes, had felony convictions from Nebraska preventing him from possessing firearms. His sentence in this case was enhanced because he had a prior conviction for drug distribution in Nebraska.
“When someone steals from a pharmacy, they’re hurting people who are often already in pain and in need of medicine. This is unconscionable,” Drug Enforcement Administration Omaha Division Special Agent in Charge Steven T. Bell said. “The DEA and our state, local and federal law enforcement partners will work tirelessly to bring down the individuals responsible for causing fear and destruction in our Nebraska communities as noted in today’s sentencing.”
This case was investigated by the Drug Enforcement Administration Omaha Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Omaha Police Department, the Nebraska State Patrol, the Lancaster County Sheriff’s Office, The Kearney Police Department, the Buffalo County Sheriff’s Office, the Harlan County Sheriff’s Office, the Ravenna Police Department, the Holdrege Police Department, and the Sherman County Sheriff’s Office
Maryland Man Convicted in $20M Insurance Fraud SchemeRead the Press Release
A federal jury convicted a Maryland man yesterday for conspiracy to commit insurance fraud, money laundering, filing false tax returns and identity theft.
According to court documents and evidence presented at trial, James Wilson, of Owings Mills, conspired with others to defraud insurance companies by obtaining over 30 life insurance policies for applicants by mispresenting their health, wealth and existing life insurance coverage. The total death benefits from these policies exceeded $20 million.
Wilson also conspired to defraud individual investors to obtain funds that he then used to pay premiums on fraudulently-obtained life insurance policies. To conceal the fraud, Wilson transferred the fraud through multiple bank accounts, including accounts in the name of trusts. Wilson filed false individual income tax returns for 2018 and 2019, which concealed approximately $5.7 million and $2 million respectively of fraud proceeds.
Wilson is scheduled to be sentenced on May 1. He faces a maximum penalty of 20 years in prison for each count of conspiracy, wire fraud, mail fraud and money laundering; and a maximum penalty of three years in prison for each count of filing a false tax return. Wilson also faces a maximum penalty of two years in prison for each count of aggravated identity theft. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, U.S. Attorney Erek L. Barron for the District of Maryland and Special Agent in Charge Kareem A. Carter of IRS Criminal Investigation (IRS-CI)’s Washington, D.C. Field Office made the announcement.
IRS-CI investigated the case, with assistance from the Maryland Insurance Administration and Maryland Attorney General.
Trial Attorneys Shawn Noud and Richard Kelley of the Tax Division and Assistant U.S. Attorneys Matthew Phelps and Philip Motsay for the District of Maryland are prosecuting the case.
Former CEO of Startup Software Company Sentenced for Payroll Tax Fraud CrimesRead the Press Release
A New Hampshire man was sentenced yesterday to two-and-a-half years in prison for willfully failing to pay more than $14 million in payroll taxes and not filing personal tax returns.
According to court documents and statements made in court, Andrew Park, 49, of Bedford, was the co-founder and CEO of a startup technology company. Park was responsible for all financial matters related to the company, including for filing the company’s quarterly employment tax returns and collecting and paying over Social Security, Medicare and income taxes withheld from the employees’ wages to the IRS, as well as the matching Social Security and Medicare taxes the company owed.
From the company’s founding in 2014 through the third quarter of 2021, Park withheld federal taxes from the wages of the company’s employees but did not pay them over as required by law. He also did not pay over the portion of the employment taxes that the company owed. Park willfully failed to do so even though a payroll service company that he hired to process the employees’ payroll regularly notified him that the taxes were due, and in more than one instance was notified by an employee that the amount paid to Social Security listed on her W-2 did not match what was reported by the Social Security Administration.
From 2013 through 2020, Park also did not file individual tax returns as required by law, despite the fact that he paid himself a salary of approximately $250,000 each year.
In total, Park caused a tax loss to the IRS exceeding $14 million.
In addition to the term of imprisonment, U.S. District Chief Judge Landya B. McCafferty for the District of New Hampshire ordered Park to serve three years of supervised release and to pay $639,821.78 in restitution to the United States and a fine of $15,000.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Acting U.S. Attorney John J. McCormack for the District of New Hampshire made the announcement.
IRS Criminal Investigation investigated the case.
Assistant Chief Eric Powers of the Tax Division and Assistant U.S. Attorney Matthew Hunter for the District of New Hampshire prosecuted the case.
Convicted Felon Sentenced to More Than Three Years in Prison for Gun CrimeRead the Press Release
BIRMINGHAM, Ala. – A convicted felon has been sentenced for illegal possession of firearms, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
United States District Court Judge R. David Proctor sentenced Robert Daneil Terry, 47, of Gadsden, to 45 months in prison. In October, Terry pleaded guilty to two counts of being a felon in possession of a firearm. Terry is prohibited from having a firearm because of multiple previous felony convictions.
According to the plea agreement, on March 26, 2022, a Gadsden Police Officer responded to a disturbance at a business in Gadsden. Upon arrival, the officer observed a vehicle quickly exiting the parking lot. The officer tried to initiate a traffic stop, but Terry led the officer on a high-speed chase. The chase ended after Terry lost control of the vehicle and wrecked in a ditch. Terry exited the vehicle and was taken into custody. The officer recovered a Taurus 9mm handgun.
On June 5, 2022, a Gadsden Police officer observed Terry standing outside of a Waffle House and, knowing he had outstanding warrants, approached him. Terry was taken into custody. The officer recovered a different Taurus 9mm handgun from the rear waistband of his pants.
ATF investigated the case along with the Gadsden Police Department. Assistant U.S. Attorney John Camp prosecuted the case.
Seven Charged in Nation’s Largest COVID-19 Tax Credit SchemeRead the Press Release
An indictment was unsealed today in Central Islip, New York, charging seven individuals with operating a multi-state conspiracy in which they attempted to defraud the United States of more than $600 million by filing more than 8,000 false tax returns claiming COVID-19-related employment tax credits.
In response to the COVID-19 pandemic and its economic impact, Congress authorized a tax credit that incentivized businesses to keep employees on their payroll, also known as the “Employee Retention Credit” or ERC.
Congress also authorized a credit that reimbursed businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit,” or SFLC, was equal to the wages the business paid the employees during their leave.
According to the indictment, from November 2021 to June 2023, defendants Keith Williams, Jamari Lewis, Morais Dicks, Janine Davis, Tiffany Williams, James Hames Jr. and Ewendra Mathurin, all current or former New York residents, repeatedly exploited these programs that were intended to help businesses impacted by the COVID-19 pandemic. The scheme was allegedly headquartered at Credit Reset, a purported credit repair business Keith Williams owned and operated. Acting as tax preparers, the defendants allegedly filed more than 8,000 false employment tax returns with the IRS claiming COVID-related tax credits on behalf of themselves and their clients. Each of these returns were allegedly fraudulent in that they claimed SFLC in excess of the amount of wages reported on the tax return, listed the same wages as both qualified sick leave wages and qualified family leave wages or claimed the SFLC and ERC for the same wages, none of which was permitted by law. The defendants allegedly profited from the scheme by receiving tax refund checks from the U.S. Treasury and by charging clients a fee or a percentage of the tax refund the client received. The defendants also allegedly recruited others into the scheme who were compensated by receiving a percentage of fraudulently obtained U.S. Treasury checks.
In total, the defendants sought more than $600 million of which the IRS paid approximately $45 million to the defendants and their clients.
Additionally, the defendants allegedly concealed their preparation of the false tax returns by not listing themselves as the paid preparer on the tax returns and by using Virtual Private Networks (VPNs) to obscure their IP addresses while filing the false returns. If a client did not have a business, members of the conspiracy allegedly would sometimes sell shell companies to them in order to file false tax returns. After noticing discrepancies in the filed returns, the IRS and Social Security Administration (SSA) allegedly requested additional information regarding the tax returns the defendants prepared. In response, members of the conspiracy allegedly would often transmit false information to the IRS and SSA.
Some of the defendants also allegedly submitted false Paycheck Protection Program (PPP) loan applications.
In total, the defendants were charged with 45 counts relating to the scheme including conspiracy to defraud the United States, wire fraud and aiding and assisting in the preparation of false tax returns. Keith Williams, Lewis, Mathurin, Davis, Tiffany Williams and Dicks were also charged with wire fraud in relation to fraudulent PPP applications they submitted.
If convicted, the defendants face a maximum penalty of five years in prison for the conspiracy to defraud the United States charge, a maximum penalty of 20 years in prison for each wire fraud charge arising out of the ERC scheme, a maximum penalty of 30 years in prison for each wire fraud charge arising out of the PPP fraud and a maximum penalty of three years in prison for each charge of aiding and assisting in the preparation of false return charge. A federal district court judge will determine the sentence of each defendant after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, U.S. Attorney John J. Durham for the Eastern District of New York, Acting Inspector in Charge Brendan Donahue of the U.S. Postal Inspection Service (USPIS)’s New York Division and Special Agent in Charge Harry T. Chavis Jr. of IRS-Criminal Investigation (IRS-CI) New York made the announcement.
IRS-CI and USPIS are investigating the case.
Trial Attorney Richard Kelley of the Tax Division and Assistant U.S. Attorneys Adam Toporovsky and James Simmons for the Eastern District of New York are prosecuting the case. Former Tax Division Trial Attorney Samuel Bean assisted with the investigation.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Keith Williams et al Indictment.pdfColorado Businesswoman Pleads Guilty to Employment Tax CrimesRead the Press Release
A Colorado businesswoman pleaded guilty today to not paying employment taxes.
According to documents and statements made in court, Shandel Arkadie, of Agate, Colorado, operated a home health care business, Alternative Choice Home Care Nursing LLC. Arkadie was responsible for withholding Social Security, Medicare and income taxes from Alternative Choice’s employees’ wages and paying those funds over to the IRS each quarter. She was also responsible for paying over Alternative Choice’s portion of Social Security and Medicare taxes. Between January 2015 and December 2020, the company withheld over $1,000,000 from its employees’ wages but did not pay the funds over to the IRS or file the requisite quarterly tax returns. In addition, the company owed approximately $500,000 in Social Security and Medicare taxes, which Arkadie did not pay.
In total, Arkadie caused a tax loss to the IRS of about $1,500,000.
Arkadie is scheduled to be sentenced on May 15. She faces a maximum penalty of five years in prison, a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Julia Rugg and Mahana Weidler of the Tax Division are prosecuting the case.
Virginia Man Pleads Guilty to Real Estate and Tax FraudRead the Press Release
A Virginia man pleaded guilty yesterday to real estate and tax fraud related to his scheme to obtain title to a $1.3 million home in Roanoke County. Specifically, he pleaded guilty to conspiring to commit wire fraud, wire fraud, mail fraud, bank fraud and filing false claims against the United States.
According to court documents and statements made in court, Herman Estes filed a false amended income tax return for 2021 claiming he was entitled to a tax refund of $18.3 million. In March 2023, Estes made a $1.3 million cash offer for a property on Old Mill Plantation Road in Roanoke County. To legitimize this offer, Estes provided the parties to the transaction with a proof of funds letter that Estes created using an online form. Estes also provided the real estate agent with a number for his co-conspirator who he claimed was his trust manager with authority to approve the offer. The co-conspirator purported to approve Estes’ use of his trust funds for the real estate transaction.
As payment for the property, Estes tendered a fraudulent cashier’s check that he had signed in the amount of $1,307,199.43 purportedly drawn on the Federal Reserve Bank of Richmond. Funds in that amount were debited to the settlement company’s trust account before the check was identified as fraudulent.
In March 2023, Estes filed another false tax return claiming he was entitled to a $2.9 million refund.
Estes will be sentenced at a later date. He faces a maximum penalty of 20 years in prison for the wire fraud conspiracy, wire fraud and mail fraud counts, a maximum penalty of 30 years in prison for bank fraud and a maximum penalty of five years in prison for the false claims counts, plus additional potential penalties related to the commission of these offenses while released on bond. Estes also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division and Acting U.S. Attorney Zachary T. Lee for the Western District of Virginia made the announcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and IRS Criminal Investigation are investigating the case.
Trial Attorney Andrew Ascencio of the Tax Division and Assistant U.S. Attorney Lee Brett for the Western District of Virginia are prosecuting the case. Former Assistant U.S. Attorney Kristin Johnson for the Western District of Virginia assisted in the investigation and prosecution.
Unified Care Services LLC Agrees to Pay $18M to Settle False Claims Act Allegations Relating to Paycheck Protection Program LoansRead the Press Release
Note: View the executed settlement agreement here.
Torrance, California-based chain of skilled nursing facilities Unified Care Services LLC (Unified Care), its affiliates and its owner, Emmanual David, have agreed to pay $18 million to resolve allegations that they violated the False Claims Act (FCA) by knowingly providing false information in support of Paycheck Protection Program (PPP) loan applications and loan forgiveness applications submitted by Unified Care and its affiliates.
The PPP, an emergency loan program established by Congress in March 2020 under the Coronavirus Aid, Relief and Economic Security (CARES) Act and administered by the Small Business Administration (SBA), was intended to support small businesses struggling to pay employees and other business expenses during the COVID-19 pandemic. Borrowers were eligible to seek forgiveness of the loans if they spent the loan proceeds on employee payroll and other eligible expenses. Only small businesses were eligible for PPP loans. Whether an applicant qualified as a small business was determined by assessing the employees, revenues, or net worth of the applicant along with all corporate affiliates that shared common operational control. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications, including their size and number of employees.
The settlement resolves allegations that Unified Care and its affiliates falsely certified they were small business with fewer than 500 employees when they submitted their PPP loan and loan forgiveness applications in 2020. These applications allegedly failed to disclose that the entities applying were part of a larger chain of facilities that all shared common ownership and control that rendered Unified Care and its affiliates ineligible for PPP loans. The Unified Care affiliates covered by the settlement include: Unified Care Services LLC; Casa Montana LLC; Geri-Care Inc.; Geri Care V LLC; Pacific Palms Healthcare LLC; Foothill Care Center Inc.; Mount Megiddo LLC; Canyon Properties III LLC; Cloverleaf Enterprises Inc.; Foothill Care Center LLC; Foothill Care Center II LLC; David Kleis III LLC; David Kleis II LLC; Miramonte Enterprises LLC; and Washington Enterprises III LLC.
“PPP loans were intended to assist eligible small businesses during the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible businesses improperly obtained loans, they harmed both the taxpayers who funded the program and the eligible businesses who were denied relief.”
“COVID-relief programs were designed to help people and businesses during the worst public health crisis this nation had seen in one century,” said U.S. Attorney Martin Estrada for the Central District of California. “My office will continue to pursue those who knowingly cheat taxpayers by violating PPP and other pandemic-related programs.”
“This resolution demonstrates the department’s commitment to ensuring that those who improperly obtain federally guaranteed PPP loans are held accountable and funds repaid to the American taxpayer” said Director of COVID-19 Fraud Enforcement Mandy Riedel of the Justice Department.
“The SBA Office of Inspector General is committed to ensuring the integrity of CARES Act programs,” said Special Agent in Charge Weston King of the SBA Office of Inspector General, Western Region. “Through partnerships with federal agencies, we continue to identify fraud schemes and protect relief funds from misuse.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned United States ex rel. Ashwani Chawla v. Unified Care Services et al., CV 21-5935-GW (CDCA). The whistleblower will receive $2,070,000 in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California, with assistance from the SBA’s Office of General Counsel (SBA-OGC) and the SBA Office of Inspector General (SBA-OIG).
Senior Trial Counsel Benjamin C. Wei of the Justice Department’s Civil Division and Assistant U.S. Attorney Jack Ross for the Central District of California handled the matter, with assistance from Mary Cvengros of SBA-OGC and Christopher H. Stephens of SBA-OIG.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across the federal government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
U.S. Government Reaches Settlement in Class Action Relating to Discharge Paperwork of Military Veterans Discharged Under “Don’t Ask, Don’t Tell” and Predecessor PoliciesRead the Press Release
On Jan. 3, the United States reached a settlement in Farrell v. Department of Defense, a class action lawsuit filed in 2023 in the U.S. District Court for the Northern District of California. The plaintiffs in Farrell alleged that the Department of Defense’s files for military veterans discharged under “Don’t Ask, Don’t Tell” and earlier policies barring lesbian, gay and bisexual people from serving openly in the military violate the Constitution’s guarantees of equal protection and due process.
Under the proposed settlement, veterans will have the opportunity to request changes to aspects of their discharge paperwork relating to sexual orientation under more streamlined procedures than currently available.
The proposed settlement agreement is subject to final approval by the district court after notice to the class and an opportunity to object.
Additional information for class members about the proposed settlement is available here:
www.defense.gov/Spotlights/Dont-Ask-Dont-Tell-Resources/
www.milreviewbds.mil/Portals/149/Class%20Notice__Farrell%20et%20al__1.pdf
Justice Department Sues to Shut Down Florida Return PreparerRead the Press Release
The Justice Department filed a civil injunction suit yesterday in federal court in Fort Lauderdale, Florida. The suit seeks to bar a Broward County, Florida, tax return preparer and his business from owning or operating a tax return preparation business and preparing tax returns for others.
The complaint alleges that Suni Ramchandani and his business SR Chandra Inc., doing business as AHS Income Tax Service, prepare federal tax returns for customers on which the preparers claim fraudulent deductions and credits to purposely underreport the tax their customers owe and claim refunds their clients are not entitled to receive. Specifically, the complaint alleges that Ramchandani and AHS prepare returns with false or inflated deductions, business expenses and business losses, as well as false claims for residential energy credits, fuel tax credits and other credits. The complaint also alleges that Ramchandani and AHS file returns that include a Form 8888 (Allocation of Refund), diverting customers’ additional refund amounts to bank accounts associated with Ramchandani without their customers’ knowledge or consent.
The government further alleges that Ramchandani and AHS prepare thousands of tax returns each year, and that when the IRS examined dozens of returns for 2022 and 2023, between 78-82% of the examined returns had errors and fabrications. According to the complaint, the repeated understatement of tax has harmed the United States by causing a revenue loss of approximately $11 million over the past two years. In addition to seeking an injunction against Ramchandani and AHS, the government has requested an order of disgorgement to prevent them from profiting from their violation of the internal revenue laws.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $79,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found 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.
Ramchandani Complaint.pdfJustice Department Statements on Supreme Court’s Decision in TikTok, et al. v. GarlandRead the Press Release
The Justice Department issued the following statements from Attorney General Merrick B. Garland and Deputy Attorney General Lisa Monaco on the Supreme Court’s decision in TikTok, et al. v. Garland:
“The Court’s decision enables the Justice Department to prevent the Chinese government from weaponizing TikTok to undermine America’s national security,” said Attorney General Garland. “Authoritarian regimes should not have unfettered access to millions of Americans’ sensitive data. The Court’s decision affirms that this Act protects the national security of the United States in a manner that is consistent with the Constitution.”
“We welcome today’s decision by the Supreme Court. The Justice Department has long warned about the national security harms from PRC control of TikTok — including the ability to gather sensitive information about tens of millions of Americans and to covertly manipulate the content delivered to them,” said Deputy Attorney General Lisa Monaco. “The Court’s ruling also underscores that the bipartisan legislation upheld today is focused on protecting Americans, not restricting free speech. Rather, this legislation is about breaking the ties that bind TikTok to the government in Beijing, in a manner consistent with the Constitution. The next phase of this effort — implementing and ensuring compliance with the law after it goes into effect on January 19 — will be a process that plays out over time.”
Justice Department Reaches Agreement with the Orange County, California, Sheriff’s Department to Protect Against the Misuse of Custodial InformantsRead the Press Release
The Justice Department announced today that it has entered into a settlement agreement with the Orange County Sheriff’s Department on the use of custodial informants by the Orange County Sheriff’s Department in California. The agreement, together with an earlier agreement with the Orange County District Attorney, fully resolves the department’s civil investigation into custodial informant activity at the Orange County Jails from 2007 through 2016 that violated criminal defendants’ right to counsel under the Sixth Amendment and right to due process of law under the 14th Amendment to the U.S. Constitution.
The agreement with the Orange County Sheriff will ensure that reforms put in place by the sheriff since suspending the use of custodial informants in 2016 provide appropriate protections against future violations. Under the agreement, the sheriff agrees to maintain changes to policies, training, document and information systems and audits in a manner that permits effective oversight of the custodial informant practices at the Orange County jails. The sheriff also agrees to solicit feedback on additional improvements from members of the criminal justice system in Orange County and to publish information about its reform efforts. The department will have full and direct access to independently validate that the Sheriff’s Department has sustained the reforms.
“We applaud the sheriff for his proactive efforts instituting key improvements to prevent the misuse of custodial informants at the Orange County Jails and to assist prosecutors in meeting their fundamental disclosure obligations while pursuing justice,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The robust and transparent validation measures in today’s agreement will strengthen the public’s trust in the sheriff’s Department and uphold the constitutional rights of criminal defendants in custody. The sheriff’s cooperation and adoption of reforms have helped narrow the scope and expected duration of the out-of-court agreement and, together with a related agreement reached with the Orange County District Attorney, will provide for continuation of the necessary collaboration and information sharing.”
The department opened its investigation into the Orange County Sheriff’s Department and the Orange County District Attorney’s Office in 2016. The evidence uncovered by the department revealed that custodial informants in the Orange County Jail system acted as agents of law enforcement to elicit incriminating statements from defendants represented by counsel, and that for years Orange County sheriff deputies maintained and concealed systems to track, manage and reward those custodial informants. The evidence also revealed that Orange County prosecutors failed to seek out and disclose exculpatory information regarding custodial informants to defense counsel.
The Civil Rights Division’s Special Litigation Section conducted the investigation pursuant to 34 U.S.C. § 12601. The statute prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law.
Since January 2021, the Civil Rights Division has opened 12 investigations into law enforcement agencies. The section is enforcing 15 agreements with law enforcement agencies and two post-judgment orders. The department also reached a court enforceable agreement with Louisville, Kentucky, and Minneapolis, Minnesota to resolve its findings. Both are pending review by the court.
The memorandum of agreement between the department and Orange County Sheriff’s Department can be found here, and the department’s investigative findings from October 2022 can be found here.
Information about the Civil Rights Division is available at www.justice.gov/crt.
HF Sinclair Navajo Agrees to Settlement to Reduce Climate- and Health- Harming Emissions at Artesia Refinery in New MexicoRead the Press Release
The Justice Department, the Environmental Protection Agency (EPA) and the New Mexico Environment Department (NMED) today announced a proposed settlement with HF Sinclair Navajo Refining LLC, an HF Sinclair Corp. subsidiary, resolving alleged Clean Air Act and New Mexico Air Quality Control Act violations at the company’s oil refinery in Artesia, New Mexico.
Under the settlement, HF Sinclair Navajo must pay a civil penalty of $35 million, owed in equal shares to the United States and the State of New Mexico. The company must implement compliance measures at an estimated cost of $137 million, including significant capital investments, to reduce emissions at its refinery. The compliance measures are projected to achieve reductions of:
- 180 tons per year of hazardous air pollutants, including benzene,
- 2,716 tons per year of volatile organic compounds (VOCs),
- 51 tons per year of NOx and
- 31 tons per year of sulfur dioxide (SO2).
These include reductions already achieved in response to EPA’s investigations. All told, the emission reductions have a related climate benefit of reducing 97,551 tons per year of carbon dioxide emission equivalence.
HF Sinclair Navajo also must operate 10 real-time air pollution monitors along the refinery fence line and one real-time air pollution monitor and six other passive monitors in the town of Artesia to measure refinery air pollution emissions and make the results available on a public website.
The refinery is adjacent to a community overburdened by pollution. This settlement is part of the Justice Department and EPA’s ongoing commitment to address unlawful pollution in historically marginalized and disproportionally impacted communities.
“This settlement reinforces the United States’ commitment to protect communities from illegal refinery benzene and VOC emissions,” said Acting Assistant Attorney General Katherine E. Konschnik of the Justice Department’s Environment and Natural Resources Division (ENRD). “Under the settlement, the refinery will make significant capital investments in pollution controls and implement additional programs to improve air quality and reduce health impacts on the residents of Artesia, including the students at Roselawn Elementary School.”
“HF Sinclair Navajo’s failure to monitor and control the release of benzene, a known carcinogen, and other hazardous and toxic air pollutants posed a significant threat and potential health risks to the nearby community,” said Acting Assistant Administrator Cecil Rodriguez of EPA’s Office of Enforcement and Compliance Assurance. “The monitoring required by today’s settlement will ensure that the community and state and federal regulators will have real-time emissions data to help ensure the community is protected against future health impacts from the refinery’s operations.”
“The fenceline community in Artesia has lived with the burden of benzene and VOC emissions for many years. This settlement is an overdue step in bringing them some relief from the potential health effects of these pollutants,” said EPA Regional Administrator Dr. Earthea Nance. “The Roselawn Elementary School, just hundreds of feet away from the HF Sinclair refinery, is a reminder of how critical our rulemaking and enforcement efforts are to protecting the health and environment of impacted citizens.”
“Today’s settlement continues to hammer home that if you don’t follow through on your commitments to clean air by following our rules, permits, or prior settlement agreements, you will pay for it in fines,” said Secretary James Kenney of NMED. “Today’s action not only obtains civil penalties — it forces the Artesia Refinery to invest in a number of projects to benefit our state, including improving controls for cancer-causing benzene emissions and other pollutants that infringe on New Mexicans’ right to breathe clean air.”
HF Sinclair Navajo has agreed to take the necessary measures to address the refinery’s failure to comply with regulations that govern a wide range of refinery equipment and operations, including flaring, fenceline monitoring of benzene emissions, wastewater, storage vessels, heat exchanger leaks and leak detection and repair.
These failures are alleged in the United States’ complaint, filed simultaneously with the settlement, and resulted in the release of hazardous air pollutants and VOCs directly into the air. The company will address these failures by:
- Installing a flare gas recovery system that will reduce VOC, SO2, and NOx, and greenhouse gas emissions;
- Implementing capital investments and additional upgrades to wastewater equipment to reduce benzene in wastewater streams and an enhanced monitoring program to more quickly identify and address air pollution emissions;
- Implementing numerous projects, such as the installation of geodesic domes, for storage vessels to reduce VOC emissions and an enhanced and innovative monitoring program to more quickly identify and address air pollution emissions;
- Strengthening leak detection and repair practices at the refinery to lower VOC and HAP emissions from process equipment and
- Implementing an enhanced inspection and chemical monitoring program of heat exchangers to more quickly identify VOC and HAP emissions from cooling towers.
In 2018 and 2019, monitoring at the refinery recorded the highest refinery fenceline benzene concentrations in the country. Under the settlement HF Sinclair Navajo agreed to operate and maintain air pollution monitors at the facility fenceline and in the community at an estimated cost of $1.8 million. The monitoring will help ensure compliance with Clean Air Act’s regulations, and help the company identify and address potentially harmful emission sources more quickly. Additionally, the fenceline and community monitoring will help regulators and the community hold HF Sinclair Navajo accountable for harmful air pollutants entering the community.
Benzene is known to cause cancer in humans and is associated with short-term and long-term inhalation exposure risks. VOCs, along with nitrous oxide, play a major role in the atmospheric reactions that produce ozone, which is the primary constituent of smog. Ground-level ozone exposure is linked to a variety of short- and long-term health problems.
HF Sinclair Corp. is a publicly traded energy company headquartered in Dallas. The Artesia refinery serves markets in the southwestern United States and has a crude oil capacity of 100,000 barrels per day.
The proposed consent decree was filed with the U.S District Court for the District of New Mexico and is subject to a 30-day comment period. The complaint and the proposed consent decree are available at www.justice.gov/enrd/consent-decrees.
EPA and NMED investigated the case.
Attorneys with ENRD’s Environmental Enforcement Section are handling the case.
BioReference Health and OPKO Health Agree to Pay $704,349 to Settle Allegations that they Billed the Government for Medically Unnecessary Blood TestsRead the Press Release
BioReference Health LLC, formerly known as BioReference Laboratories Inc. (BioReference) and OPKO Health Inc. (OPKO), have agreed to pay $704,349 to resolve alleged violations of the False Claims Act arising from BioReference’s submission of claims for laboratory tests that had not been ordered by a patient’s provider. OPKO is a Delaware Corporation. BioReference, a subsidiary of OPKO, is headquartered in New Jersey and is one of the largest clinical laboratories in the United States.
The United States alleged that BioReference and OPKO knowingly submitted false claims to federal healthcare programs for complete blood count (CBC) with automated white blood cell (WBC) differential laboratory tests that were not medically necessary. Specifically, the United States alleged that, from Jan. 1, 2012, until March 1, 2023, BioReference and OPKO routinely performed more expensive CBC with WBC differential tests when, in fact, medical providers had ordered less expensive CBC with no WBC differential tests, and then billed federal healthcare programs for the more expensive and medically unnecessary tests.
“Health care providers are expected to provide and bill only for services that are medically necessary,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our commitment to protecting the integrity of federal health care programs and the taxpayer funds that support them.”
“BioReference allegedly profited by fraudulently performing and billing the federal government for unreasonable and unnecessary lab tests,” said U.S. Attorney David C. Weiss for the District of Delaware. “Schemes like these waste taxpayer money and raise healthcare costs for all Americans. My office will vigorously enforce anti-fraud statutes like the False Claims Act to combat such fraud and abuse of our healthcare system.”
“Laboratory companies have a responsibility to perform the specific testing requested by physicians’ orders,” said Special Agent in Charge Maureen R. Dixon of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is committed to working with the Justice Department to investigate allegations of inappropriate insurance claims and to safeguard the integrity of our federal health care programs.”
The settlement stems from allegations originally brought in a lawsuit filed in the District of Delaware by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties, known as relators, to bring suit on behalf of the government and to share in any recovery. In connection with today’s announced settlement, the relator will receive $112,694 of the recovery. The qui tam case is captioned United States ex rel. Omni Healthcare Inc. v. OPKO Health, Inc. and BioReference Laboratories Inc., Civil Action No. 19-1670 (DDE).
This settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and U.S. Attorney’s Office for the District of Delaware with assistance from HHS-OIG. Trial Attorney Claire L. Norsetter of the Justice Department’s Civil Division and Assistant U.S. Attorney Shamoor Anis for the District of Delaware handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Attorney General Merrick B. Garland Honors Justice Department Employees and Partners for the 72nd Annual Attorney General’s AwardsRead the Press Release
Attorney General Merrick B. Garland announced the recipients of the 72nd Annual Attorney General’s Awards, honoring Justice Department employees and others for extraordinary contributions to the enforcement of our nation’s laws. This year, there are 437 award recipients in 23 categories.
The 72nd Attorney General’s Awards and recipients are as follows:
The Attorney General’s David Margolis Award for Exceptional Service is the highest award given by the Justice Department to recognize employee achievement.
The Attorney General commends the investigation and prosecution team of the Tree of Life Synagogue shooting: U.S. Attorney Honorable Eric G. Olshan for the Western District of Pennsylvania; Trial Attorney Barry K. Disney of the Criminal Division’s Capital Case Section; First Assistant U.S. Attorney Troy Rivetti for the Western District of Pennsylvania; Trial Attorney Aaron J. Stewart of the Criminal Division’s Capital Case Section; Assistant U.S. Attorney Soo C. Song for the Western District of Pennsylvania; Special Agent Samantha Bell of the FBI Pittsburgh Field Office; Assistant U.S. Attorney Nicole Vasquez Schmitt for the Western District of Pennsylvania; Special Agent Brian R. Collins of the FBI Pittsburgh Field Office; Assistant U.S. Attorney Christopher M. Hanrahan for the Western District of Pennsylvania; Staff Operations Specialist Evan P. Browne of the FBI Pittsburgh Field Office; Victim Assistance Specialist Adrienne R. Howe for the Western District of Pennsylvania; Victim Specialist Bridget M. Simunovic for the FBI Pittsburgh Field Office; Trial Attorney Mary J. Hahn of the Civil Rights Division’s Criminal Section; Victim Specialist Kristin N. Czernewski of the FBI Pittsburgh Field Office; and Trial Attorney Julia K. Gegenheimer of the Civil Rights Division’s Criminal Section.
The Attorney General’s Award for Distinguished Service is the Department’s second highest award for employee performance. There are 16 Distinguished Service Awards.
The first Distinguished Award is presented to the BOP Deaths in Custody Evaluation Team: Chief Inspector Jan E. Davis Hamm of the Office of Inspector General’s Evaluations and Inspections Division; Chief Inspector Michael E. Pannone of the Office of Inspector General’s Evaluations and Inspections Division; Senior Inspector Alexander C. Parker of the Office of Inspector General’s Evaluations and Inspections Division; and Inspector Lincoln T. Berget of the Office of Inspector General’s Evaluations and Inspections Division.
The second Distinguished Award is presented to the Uvalde Team: Deputy Director Robert Chapman of the Office of Community Oriented Policing Services; Senior Counsel to the Director Shanetta Cutlar of the Office of Community Oriented Policing Services; Policing Assistance and Reform Sociologist Nazmia Comrie of the Office of Community Oriented Policing Services.
The third Distinguished Award is presented to the Second Amendment Appellate Litigation Team: Assistant to the Solicitor General Vivek Suri of the Office of the Solicitor General; Appellate Litigation Counsel Mark B. Stern of the Civil Division’s Appellate Staff; Deputy Chief Ann O’Connell Adams of the Criminal Division’s Appellate Section; Appellate Litigation Counsel Michael S. Raab of the Civil Division’s Appellate Staff; Deputy Chief Scott Meisler of the Criminal Division’s Appellate Section; Trial Attorney Courtney L. Dixon of the Civil Division’s Appellate Staff; Trial Attorney William Glaser Criminal Division’s Appellate Section; Trial Attorney Sean R. Janda of the Civil Division’s Appellate Staff; Trial Attorney Joshua Handell of the Criminal Division’s Appellate Section; Trial Attorney Kevin B. Soter of the Civil Division’s Appellate Staff; Trial Attorney Andrew Noll of the Criminal Division’s Appellate Section; Trial Attorney Steven H. Hazel Civil Division’s Appellate Staff; Trial Attorney Mahogane Reed of the Criminal Division’s Appellate Section; Trial Attorney Benjamin R. Lewis Civil Division’s Appellate Staff; and Deputy Director Abby C. Wright of the Civil Division’s Appellate Staff.
The fourth Distinguished Award is presented to the Purdue Pharma Team: Deputy Director and General Counsel Ramona D. Elliott of the U.S. Trustee Program’s Executive Office; Deputy General Counsel Lisa A. Tracy of the U.S. Trustee Program’s Executive Office; Associate General Counsel Nan Roberts Eitel of the of the U.S. Trustee Program’s Executive Office; Associate General Counsel P. Matthew Sutko of the of the U.S. Trustee Program’s Executive Office; U.S. Trustee William K. Harrington of the U.S. Trustee Program’s Regions 1 and 2; Assistant U.S. Trustee Linda A. Riffkin of the U.S. Trustee Program’s Regions 1 and 2; Trial Attorney Paul M. Schwartzberg of the U.S. Trustee Program’s Region 2; Trial Attorney Denise J. Penn of the U.S. Trustee Program’s Executive Office; Trial Attorney John P. Sheahan of the U.S. Trustee Program’s Executive Office; Trial Attorney Beth A. Levene of the U.S. Trustee Program’s Executive Office; Trial Attorney Sumi K. Sakata of the U.S. Trustee Program’s Executive Office; Attorney Michael Shih Civil Division’s Appellate Staff; Attorney Sean R. Janda Civil Division’s Appellate Staff; Assistant U.S. Attorney Lawrence A. Fogelman for the Southern District of New York; Assistant U.S. Attorney Peter M. Aronoff for Southern District of New York; Deputy Solicitor General Curtis E. Gannon of the Office of the Solicitor General; Assistant to the Solicitor General Masha G. Hansford of the Office of the Solicitor General
The fifth Distinguished Award is presented to the Medicare Drug Negotiation Team: Assistant Director Michelle Bennett of the Civil Division; Staff Attorney Steve Myers of the Civil Division; Senior Trial Counsel Steve Pezzi of the Civil Division; Staff Attorney Catherine Padhi of the Civil Division; Appellate Litigation Counsel Michael S. Raab of the Civil Division; Staff Attorney David Peters of the Civil Division; Staff Attorney Maxwell Baldi of the Civil Division; Staff Attorney Lindsey Powell of the Civil Division; Trial Attorney Christine Coogle of the Civil Division; Trial Attorney Cassie Snyder of the Civil Division; Trial Attorney Alexander V. Sverdlov Civil Division; Trial Attorney Mike Gaffney of the Civil Division.
The sixth Distinguished Award is presented to the Magazine Case Team: Supervisory Special Agent Dustin Berger of the FBI Minneapolis Field Office; Paralegal Specialist Chrissy J. Nguyen for the District of Minnesota; Forensic Accountant Lacramioara Blackwell of the FBI Minneapolis Field Office; Paralegal Specialist Hannah C. Serres for the District of Minnesota; Assistant U.S. Attorney Matthew S. Ebert for the District of Minnesota; Assistant U.S. Attorney Joseph H. Thompson for the District of Minnesota; Assistant U.S. Attorney Garrett S. Fields for the District of Minnesota; Litigation Support Specialist Rachel L. Thrasher for the District of Minnesota; Assistant U.S. Attorney Harry M. Jacobs for the District of Minnesota; U.S. Postal Inspector John M. Western of the U.S. Postal Inspection (USPIS) Denver Field Office; and Special Agent Jared F. Kary of the FBI Minneapolis Field Office.
The seventh Distinguished Award is presented to the Emergency Support Function #13 National Coordinator Center: National Coordinator Robert P. McCloy of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Unit Chief Michael T. McCarthy of the FBI’s Critical Incident Response Group; Correctional Program Specialist Jacob Dyer of the Federal Bureau of Prisons; Special Agent Robert L. Patrizi of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Special Agent Christopher E. Felski of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Special Agent Michael D. Schaefer of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Special Agent Gregory A. Fox of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Special Agent Nathan P. Shaffer of the Drug Enforcement Administration (DEA); Program Analyst Jennifer D. Ivy of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Assistant Chief Inspector Jeffrey R. Sharp U.S. Marshals Service (USMS); Budget Analyst Naomi Jacques of the Federal Bureau of Prisons; Emergency Management Specialist Edward G. Sherburne III of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Special Agent Gabriel S. Mamock of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Assistant Chief Inspector Andrew Slazinik of the USMS; and Special Agent Daniel R. Marchant of the DEA.
The eighth Distinguished Award is presented to the Google Search Team: Trial Attorney Diana A. Aguilar Aldape of the Antitrust Division’s San Francisco Office; Trial Attorney Claire M. Maddox of the Antitrust Division’s Technology and Digital Platforms; Assistant Section Chief Meagan K. Bellshaw of the Antitrust Division’s Financial Services, Fintech, and Banking Section; Trial Attorney Michael G. McLellan of the Antitrust Division’s Financial Services, Fintech, and Banking Section; Acting Deputy Director of Civil Litigation David E. Dahlquist of the Antitrust Division’s Litigation Program; Economics Director of Enforcement Office Aditi M. Mehta of the Antitrust Division’s Assistant Attorney General; Deputy Branch Director Kenneth Dintzer of the Antitrust Division’s Commercial Litigation Branch/National Courts; Senior Litigation Counsel Erin K. Murdock-Park of the Antitrust Division’s Litigation Program; Trial Attorney Jeremy M.P. Goldstein of the Antitrust Division’s San Fransico Office; Economist Craig T. Peters of the Antitrust Division’s Economic Policy Section; Trial Attorney Richard C. Gower of the Antitrust Division’s Technology and Digital Platforms; Assistant Section Chief Adam T. Severt of the Antitrust Division’s Technology and Digital Platforms; Trial Attorney Karl E. Herrmann of the Antitrust Division’s Technology and Digital Platforms; Counsel to the Assistant Attorney General Lara E.V. Trager of the Antitrust Division’s Technology and Digital Platforms; Assistant Section Chief Elizabeth S. Jensen of the Antitrust Division’s San Fransico Office; Trial Attorney Sara Trent of the Antitrust Division’s Technology and Digital Platforms; Trial Attorney Matthew R. Jones of the Antitrust Division’s Financial Services, Fintech, and Banking Section; Economist Andrew S. Vollmer of the Antitrust Division’s Economic Litigation Section; Economist Samuel D. Krumholz of the Antitrust Division’s Economic Regulatory Section; and Trial Attorney Catharine S. Wright of the Antitrust Division’s Technology and Digital Platforms.
The ninth Distinguished Award is presented to the Counternarcotic Cyber Investigations Task Force: Special Agent Michael A. Buemi of the DEA’s Miami Field Division; Task Force Officer Carlos Muvdi of the DEA’s Miami Field Division; Staff Coordinator Hauns G. Charters of the DEA’s Special Operations Division; Sanctions Investigator Thomas L. Vien of the Department of the Treasury’s Office of Foreign Assets Control; Postal Inspector Rafael A. Garcia of the USPIS Miami Division; Special Agent James B. Whitworth of the DEA’s Miami Field Division; Special Agent Alexis J. Gregory of Homeland Security Investigation (HSI), Program Manager Lissel Wilson of U.S. Custom and Border Protection’s Officer National Targeting Center;
Sanctions Investigator Matthew B. Hebron of the Department of the Treasury’s Office of the Foreign Assets Control; Intelligence Research Specialist Nikeisha P. Winston of DEA’s Miami Field Division; Special Agent Bryce Jones of the Internal Revenue Service – Criminal Investigations; Diversion Investigator Lana M. Worobec of DEA’s Beijing Country Office; and Supervisory Intelligence Research Specialist Daniel E. Maxwell of DEA’s Office of Special Intelligence.
The 10th Distinguished Award is presented to the Title II Web Final Rule Team: Deputy Assistant Attorney General Jennifer E. Mathis of the Civil Rights Division; Attorney Advisor Lara S. Kaufmann of the Civil Rights Division’s Disability Rights Section; Chief Rebecca B. Bond of the Civil Rights Division’s Disability Rights Section; Trial Attorney Rebecca N. Guterman of the Civil Rights Division’s Disability Rights Section; Deputy Chief Kristin M. Stitcher of the Civil Rights Division’s Disability Rights Section; Trial Attorney Abigail A. Olson of the Civil Rights Division’s Disability Rights Section; Deputy Chief Joy Levin Welan of the Civil Rights Division’s Disability Rights Section; Attorney Advisor Badar U. Tareen of the Civil Rights Division’s Disability Rights Section; Attorney Advisor David K. Gardner of the Civil Rights Division’s Disability Rights Section; Paralegal Specialist Cameron C. Lynch of the Civil Rights Division’s Professional Development Office; Attorney Advisor Logan K. Gerrity of the Civil Rights Division’s Disability Rights Section.
The 11th Distinguished Award is presented to the Access to Justice Leadership Team: Senior Advisor Jesse Bernstein of the Office for Access to Justice; Executive Officer Shannon Munro of the Office for Access to Justice; Language Access Coordinator Claudia Castillo of the Office for Access to Justice; Senior Counsel Nikhil Ramnaney of the Office for Access to Justice; Pro Bono Program Manager Laura Klein of the Office for Access to Justice; Deputy Director of Policy Christina Smith of the Office for Access to Justice; Public Affairs Officer Lauren Lambert of the Office for Access to Justice; Acting Deputy Director of Programs David Steib of the Office for Access to Justice; Senior Advisor Kim Lopez of the Office for Access to Justice; Senior Counsel Andrew Walchuk of the Office for Access to Justice; General Counsel Catalina Martinez of the Office for Access to Justice; Acting Chief of Staff Jessa Wilcox of the Office for Access to Justice; Human Resource Liaison Nichole Miller of the Office for Access to Justice; and Executive Director of the Legal Aid Interagency Roundtable Allie Yang-Green of the Office for Access to Justice.
The 12th Distinguished Award is presented to the Fisher Team: Deputy Chief of Complex Frauds Christopher Huber for the Northern District of Georgia; Trial Attorney Richard Rolwing of the Tax Division’s Northern Criminal Enforcement Section; Trial Attorney Jessica Kraft of the Tax Division’s Southern Criminal Enforcement Section; Trial Attorney Nicholas Schilling of the Tax Division’s Southern Criminal Enforcement Section; Paralegal Robert Resto of the Tax Division’s Southern Criminal Enforcement Section; Trial Attorney Parker Tobin of the Tax Division’s Southern Criminal Enforcement Section.
The 13th Distinguished Award is presented to the Data Protection Review Court Team: Acting Director Katherine Harman-Stokes of the Office of Privacy and Civil Liberties; Program Specialist Leatha Johnson of the Office of Privacy and Civil Liberties; Senior Counsel Christina Baptista of the Office of Privacy and Civil Liberties; International Director Dylan Cors of the National Security Division’s Office of Law and Policy; Senior Counsel Hannah Mayer of the Office of Privacy and Civil Liberties; Litigation Support Specialist Maisha Treadwell of the National Security Division’s eLitigation and Data Services; Senior Counsel Andrew McFarland of the Office of Privacy and Civil Liberties; Assistant Director Nancy Anne Baugher of the Justice Management Division’s Budget Staff; Senior Counsel Jay Sinha of the Office of Privacy and Civil Liberties; Budget Analyst Peter Carlino of the Justice Management Division’s Budget Staff; Attorney Advisor Victoria Garcia of the Office of Privacy and Civil Liberties; Assistant Director Julie Homick of Justice Management Division’s Human Resources Coordination Team; Management and Program Advisor Andria Robinson-Smith of the Office of Privacy and Civil Liberties; and Program Specialist Claudia Tweed of the Justice Management Division’s Human Resource Operations.
The 14th Distinguished Award is presented to the Section 702 Reauthorization Team: Supervisory Attorney Advisor Peter J. Atlee of the National Security Division’s Office of Intelligence; Chief of Staff and Senior Counsel Susan J. Hennessey of the National Security Division’s Office of the Assistant Attorney General; Senior Counsel Andrew D. Beaty of the Office of the Deputy Attorney General; Supervisory Special Agent W. Mike Herrington of the FBI’s Office of the Director; Counselor Margot G. Benedict of the Office of the Attorney General; Counsel Hilary A. Hurd of the Office of the Deputy Attorney General; Senior Counsel Adrienne L. Benson of the Office of the Deputy Attorney General; Deputy Assistant Attorney General Melissa MacTough of the National Security Division’s Office of the Assistant Attorney General; Deputy Assistant Attorney General Nelson Slade Bond II of the Office of Legislative Affairs; Legislative Affairs Specialist Daniel J. Paviglianiti of the FBI’s Office of Congressional Affairs; Attorney Advisor Kathryn J. L. Donahue of the National Security Division’s Office of Intelligence; Supervisory Attorney Advisor Joshua T. Raines of the National Security Division’s Office of Intelligence; Press Secretary Emma M. Dulaney of the Office of Public Affairs; and Attorney Advisor James Saulino of the FBI’s Office of General Counsel.
The 15th Distinguished Award is presented to the Marathon Oil Team: Trial Attorney Jonah P. Brown of the Environment and Natural Resources Division’s Environmental Enforcement Section; Trial Attorney Vanessa M. Moore of the Environment and Natural Resources Division’s Environmental Enforcement Section; Legal Assistant Gabrielle J. James of the Environment and Natural Resources Division’s Environmental Enforcement Section; Assistant Section Chief Laura A. Thoms of the Environment and Natural Resources Division’s Environmental Enforcement Section; Paralegal Specialist Meghan R. Jones of the Environment and Natural Resources Division’s Environmental Enforcement Section.
The 16th Distinguished Award is presented to the United States v. Ross Roggio Team: Trial Attorney Scott A. Claffee National Security Division’s Counter Espionage Section; Legal Administrative Specialist Sierra Morano for the Middle District of Pennsylvania; Trial Attorney Colette L. Ford of the Criminal Division’s Office of International Affairs; Victim Witness Specialist Andrea C. Myers for the Middle District of Pennsylvania; Assistant U.S. Attorney Todd K. Hinkley for the Middle District of Pennsylvania; Legal Administrative Specialist Christina M. Nihen for the Middle District of Pennsylvania; Historian Phil Hoffman of the Criminal Division’s Human Rights & Special Prosecutions Section; Special Agent Thomas J. O’Donnell of the FBI Philadelphia Field Office; Trial Attorney Patrick Jasperse of the Criminal Division’s Human Rights & Special Prosecutions Section; Paralegal Anna Rogers of the Criminal Division’s Human Rights & Special Prosecutions Section; Trial Attorney Christian Levesque of the Criminal Division’s Human Rights & Special Prosecutions Section; and Deputy Chief Courtney Spivey Urschel of the Criminal Division’s Human Rights & Special Prosecutions Section.
The Attorney General’s Award for Exceptional Heroism recognizes a remarkable act of bravery and risk of life while performing official duties.
The Award for Exception Heroism is presented to the Carolinas Regional Fugitive Task Force: Senior Inspector Austin Acheson of the USMS Investigative Operations Division; Special Agent Arthur Philson of the ATF; Task Force Officer (Fallen) William Elliott of the USMS Investigative Operations Division; Task Force Officer (Fallen) Samuel Poloche of the USMS Investigative Operations Division; Task Force Officer Josh Funderburk of the USMS Investigative Operations Division; Task Force Officer Frankie Runyon of the USMS Investigative Operations Division; Task Force Officer Casey Hoover of the USMS Investigative Operations Division; Task Force Officer Chad Shingler of the USMS Investigative Operations Division; Task Force Officer Frank Irizarry of the USMS Investigative Operations; Deputy U.S. Marshal Joshua Shuffler for the Western District of North Carolina; Task Force Officer Collin Johnson of the USMS Investigative Operations Division; Senior Inspector Eric Tillman of the USMS Investigative Operations; Task Force Officer Samuel Laws of the USMS Investigative Operations Division; Deputy U.S. Marshal (Fallen) Thomas Weeks for the Western District of North Carolina; Senior Inspector Derek Miller of the USMS Investigative Operations Division.
The Mary C. Lawton Lifetime Service Award recognizes employees who have served at least 20 years in the Department and who have demonstrated high standards of excellence and dedication throughout their careers. This award is presented only in exceptional circumstances to those individuals of special merit and is not awarded to express general appreciation for tenure alone.
The first Mary C. Lawton Lifetime Service Award is presented to Deputy Chief Barbara “Bobbi” Bernstein of the Civil Rights Division’s Criminal Section.
The second Mary C. Lawton Lifetime Service Award is presented to General Counsel Jennifer Kaplan of the Office on Violence Against Women.
The third Mary C. Lawton Lifetime Service Award is presented to Supervisory Trial Attorney Terry Henry of the Civil Division’s Federal Programs Branch.
The fourth Mary C. Lawton Lifetime Service Award is presented to Assistant U.S. Attorney Shane Harrigan for the Southern District of California.
The fifth Mary C. Lawton Lifetime Service Award is presented to Assistant U.S. Attorney Mary Jane Stewart for the Northern District of Georgia.
The sixth Mary C. Lawton Lifetime Service Award is presented to Deputy Chief Gregg A. Maisel for the District of Columbia.
The seventh Mary C. Lawton Lifetime Service Award is presented to Senior Counsel for Appellate Matters Eric G. Hostetler of the Environment and Natural Resources Division’s Environmental Defense Section.
The eighth Mary C. Lawton Lifetime Service Award is presented to Supervisory Attorney Mary K. Butler of the Criminal Division’s Money Laundering and Asset Recovery Section.
The ninth Mary C. Lawton Lifetime Service Award is presented to Supervisory Special Agent Richard B. Marx of the FBI’s Laboratory Division.
The Edward H. Levi Award for Outstanding Professionalism and Exemplary Integrity is established to pay tribute to the memory and achievements of former Attorney General Edward H. Levi, whose career as an attorney, law professor, and dean and public servant exemplified these qualities in the best traditions of the Department. The Edward H. Levi Award for Outstanding Professionalism and Exemplary Integrity is presented to Trial Attorney Lowell V. Sturgill of the Civil Division’s Appellate Staff.
The William French Smith Award for Outstanding Contribution to Cooperative Law Enforcement was established to pay tribute to the memory and achievements of former Attorney General William French Smith for his establishment of Law Enforcement Coordinating Committees (LECCs), and his outstanding efforts in promoting law enforcement cooperation and coordination throughout the nation. It is designed to recognize state and local law enforcement officials who, through their participation in cooperative interagency efforts, have made significant contributions to law enforcement endeavors and objectives.
This award is presented to the OPERATION DISRUPT SoCal Team: Senior Trial Attorney Stephen Da Ponte of the Environment and Natural Resources Division’s Environmental Crimes Section; Special Agent Brett A. Crooks of HSI; Deputy Chief Joseph A. Poux of the Environment and Natural Resources Division’s Environmental Crimes Section; Special Agent Seidy Gaytan of HSI; Assistant Special Agent-In-Charge Benjamin M. Carr of Environmental Protection Agency’s Criminal Investigation Division; Special Agent Shawn P. Doyle of HSI; Special Agent Gabrielle M. Buda of the Environmental Protection Agency’s Criminal Investigation Division; Special Agent Ian MacLean of HSI; Special Agent Sawyer A. Rotell of the Environmental Protection Agency’s Criminal Investigation Division; Criminal Analyst Regina Soria of HSI; Special Agent Ezekiel Austin of the Environmental Protection Agency’s Criminal Investigation Division; Chief Phong Hua of U.S. Customs and Border Protection; Supervisory Special Agent Michael Lesley of HSI; Watch Commander Roberto Pagan of U.S. Customs and Border Protection; Supervising Criminal Investigator Gloria Gamino of the California Department of Toxic Substances Control.
The Attorney General’s Award for Excellence in Law Enforcement recognizes outstanding professional achievements by law enforcement officers within the Justice Department. Two Excellence in Law Enforcement Awards.
The first Award for Excellence in Law Enforcement is presented to the Charlotte Response Team: Deputy Commander Brian Alfano of the USMS’ Investigative Operations Division; Senior Inspector David Frebel Jr. of the USMS’ Investigative Operations Division; Deputy Commander Brian Montana of the USMS’ Investigative Operations Division; Task Force Officer Jamie Terry of the USMS’ Investigative Operations Division; Law Enforcement Officer Jack Blowers of the Charlotte-Mecklenburg Police Department; Law Enforcement Officer Mike Giglio of the Charlotte-Mecklenburg Police Department; Law Enforcement Officer Justin Campbell of the Charlotte-Mecklenburg Police Department; Law Enforcement Officer Christopher Tolley of the Charlotte-Mecklenburg Police Department; Enforcement Officer (Fallen) Joshua Eyer Law of the Charlotte-Mecklenburg Police Department; Task Force Officer Samuel Barksdale of the Investigative Operations Division Gastonia Police Department.
The second Award for Excellence in Law Enforcement is presented to Special Agent Kimojha “Mo” Brooks of the DEA’s North and Central America Division.
The Attorney General’s Award for Exceptional Service in Indian Country is designed to recognize extraordinary efforts to demonstrate the Department's commitment to fight crime in Indian Country. The Award for Exceptional Service in Indian Country is presented to the Tribal Affairs Division of the Office on Violence Against Women: Grants Management Specialist Lisa M. Arnold of the Office on Violence Against Women; Grants Management Specialist Jennifer W. Marsh of the Office on Violence Against Women; Grants Management Specialist Tammy L. Ashley of the Office on Violence Against Women; Grants Management Specialist Jenny R. Mills of the Office on Violence Against Women; Grants Management Specialist Yulonda I. Candelario of the Office on Violence Against Women; Grants Management Specialist Mary A. Mummaw of the Office on Violence Against Women; Attorney Advisor Frances A. Cook of the Office on Violence Against Women; Deputy Director Sherriann C. Moore of the Office on Violence Against Women; Grants Management Specialist Samantha L. Dziatkiewicz of the Office on Violence Against Women; Grants Management Darla R. Nolan of the Specialist Office on Violence Against Women; Supervisory Grants Management Specialist Tia H. Farmer of the Office on Violence Against Women; Grants Management Specialist Cheryl “Renee” Stapp of the Office on Violence Against Women; Supervisory Grants Management Specialist Rebekah R. Jones of the Office on Violence Against Women; Grants Management Specialist Sydney L. West of the Office on Violence Against Women; Senior Grants Management Specialist Regina D. Madison of the Office on Violence Against Women.
The Attorney General’s Award for Excellence in Management recognizes outstanding administrative or managerial achievements which have significant improved operations, productivity, or reduced costs. The award is presented to Program Manager Angela D. Vandergrift of the FBI’s Criminal Justice Investigative Services.
The Attorney General’s Award for Excellence in Technology or Privacy recognizes outstanding contributions by Justice Department employees in applying information technology to improve the operations or productivity of the Department, reduce or avoid costs, or solve problems, as well as recognizing outstanding achievements in privacy law, policy, and compliance.
The first Attorney General’s Award for Excellence in Technology or Privacy was presented to the Bankruptcy Videoconference Team: Supervisory Auditor Krista G. Hale of the U.S. Trustee Program; Auditor Nicole M. Zollars of the U.S. Trustee Program.
The second Attorney General’s Award for Excellence in Technology or Privacy was presented to the DOJ National Law Enforcement Accountability Database (NLEAD) Team: Senior Counsel Jeffrey S. Nestler of the Office of the Deputy Attorney General; Director James L. Dunlap of the Justice Management Division’s Security and Emergency Planning Staff; Chief Privacy & Civil Liberties Officer (Acting) Peter A. Winn of the Office of Privacy and Civil Liberties; Assistant Director Michael W. Haas of the Justice Management Division’s Law Enforcement Services and Information Sharing; Deputy Associate Attorney General Saeed Mody of the Office of the Associate Attorney General; Senior Advisor Marissa A. Marrone of the Justice Management Division’s Human Resources Staff; Deputy Assistant Attorney General Melinda Rogers of the Justice Management Division’s Office of the Chief Information Officer; Deputy Director Brian Merrick of the Justice Management Division’s Service Delivery Staff; Deputy Assistant Attorney General Michael Williams of the Justice Management Division’s Human Resources and Administration; General Counsel Morton J. Posner of the Justice Management Division; Director Melody Armstrong of the Justice Management Division; Deputy Director F. Michael Sena Justice Management Division’s Human Resources Staff; Chief of Staff Nikki Collier of the Justice Management Division; Senior Assistant General Counsel Evelyn Tang of the Justice Management Division; Deputy Assistant Director Peter W. Crichlow of the Justice Management Division; Deputy Assistant Director Leah Taylor of the USMS; Assistant Director Eric S. Daniels of the Justice Management Division; Deputy Assistant Director Erin M. Prest of the FBI’s Office of the General Counsel; Assistant Director Swati Deb of the Justice Management Division’s Application Technical Services.
The Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security is designed to recognize a special act or service by a Department employee who has greatly contributed to protecting U.S. national security. The 2024 award is presented to T-Mobile Committee on Foreign Investment in the United States Penalty and Disclosure Team: Supervisory Attorney Advisor Eric S. Johnson of the National Security Division’s Foreign Investment Review Section; Supervisory Attorney Advisor Diane Kelleher of the Civil Division’s Federal Programs Branch; Research Support Specialist Robert A. Kaminaris of the National Security Division’s Foreign Investment Review Section; Trial Attorney James C. Luh of the Civil Division’s Federal Programs Branch; Attorney Advisor Eileen C. Keenan of the National Security Division’s Foreign Investment Review Section; Information Technology Specialist Matthew Baer of the FBI’s Operation Technology Division; Attorney Advisor Kara L. Podraza of the National Security Division’s Foreign Investment Review Section; Senior Telecommunications Specialist Michael Gray of the FBI’s Operational Technology Division; Supervisory Attorney Advisor Tyler J. Wood of the National Security Division’s Foreign Investment Review Section; Attorney Gregory Welsch of the FBI’s Operational Technology Division; and Trial Attorney Alison Zitron of the Criminal Division’s Computer Crime and Intellectual Property Section.
The Attorney General’s Award for Outstanding Service in Freedom of Information Act (FOIA) Administration is designated to recognize exceptional dedication to the implementation of the Freedom of Information Act. This award is presented to the Federal Bureau of Prisons Freedom of Information Act Team: Government Information Specialist Santos Arellano of the Federal Bureau of Prisons’ North Central Regional Office; Government Information Specialist Sara Lilly of the Federal Bureau of Prisons’ Central Office; Supervisory Attorney Advisor Eugene Baime of the Federal Bureau of Prisons’ Central Office; Government Information Specialist Kristi Scarantino of the Federal Bureau of Prisons’ Federal Correctional Complex Butner; Government Information Specialist Robin Carl of the Federal Bureau of Prisons’ Western Regional Office; Government Information Specialist Shauniece White of the Federal Bureau of Prisons’ Federal Correctional Institution Fort Dix; Supervisory Government Information Specialist Kara Christenson of the Federal Bureau of Prisons’ Federal Medical Center Rochester.
The Attorney General’s Award for Equal Employment Opportunity is the Department’s highest award for performance in support of the Equal Employment Opportunity Program. This award is presented to the Beacon Project Team: Information Technology Specialist Aisha Napari Abass of the FBI Newark Field Office; Special Agent Corey G. Harris of the FBI New Orleans Field Office; Management & Program Analyst Alexis Karen Averette of the FBI’s Office of Diversity & Inclusion; Management and Program Analyst Tamika M. Harrison of the FBI’s Office of Diversity and Inclusion; Bryant Management & Program Analyst Shantuana Nicole of the FBI’s Directorate of Intelligence; Community Outreach Specialist Chiquanda D. Tillie of the FBI Columbia Field Office; Supervisory Foreign Language Program Coordinator Annie Yaitze Correa of the FBI New York Field Office; Community Outreach Specialist Stacie K. Ward of the FBI Charlotte Field Office; Management & Program Analyst Stacy Lamonte Culler of the FBI Office of Diversity and Inclusion; Management and Program Analyst Amy E. Waye of the FBI’s Office of Diversity and Inclusion; Special Agent Stacey Reid Deal of the FBI Charlotte Field Office; Applicant Recruiter/Coordinator Amani Wilson of the FBI Baltimore Field Office; Management & Program Analyst Edrienne C. Elliott-Wade of the FBI’s Office of Diversity and Inclusion; Supervisory Special Agent Kisha T. Winston of the FBI Washington Field Office; Community Outreach Specialist Marvella Gray of the FBI Baltimore Field Office.
The Attorney General’s Award for Excellence in Legal Support recognizes outstanding achievements in the field of legal support to attorneys by paralegal specialists and other legal assistants.
The first award for Excellence in Legal Support is presented to Environmental Torts Litigation Paralegal Specialist Doris Renate Epton of the Civil Division’s Torts Branch.
The second award for Excellence in Legal Support is presented to Management Analyst/Criminal Paralegal Margaret E. Jahn for the Eastern District of Virginia.
The Attorney General’s Award for Excellence in Administrative Support recognizes outstanding administrative or managerial achievements (e.g., human resources, financial management, information technology, and general non-legal administrative support). This award is presented to Paralegal Jenna Rahrle of the Office of Legislative Affairs.
The Claudia J. Flynn Award for Professional Responsibility is designed to recognize a Department attorney who has made significant contributions in professional responsibility by successfully handling a sensitive and challenging professional responsibility issue in an exemplary fashion and/or leading efforts to ensure that Department attorneys carry out their duties in accordance with the rules of professional conduct. The Claudia J. Flynn Award for Professional Responsibility is presented to Deputy Counsel Suzanne K. Drouet of the Office of Professional Responsibility.
The Attorney General’s Award for Asset Forfeiture recognizes the outstanding legal efforts or other actions by Department employees in support of the Government’s asset forfeiture programs. The Attorney General’s Award for Asset Forfeiture is presented to the Corporate Whistleblower Awards Pilot Program Team: Associate Deputy Attorney General Andrew J. Bruck of the Office of the Deputy Attorney General; Chief Policy Unit Sarah Dorsey of the Criminal Division’s Money Laundering & Asset Recovery Section; Deputy Assistant Attorney General Kevin O. Driscoll of the Criminal Division’s Office of the Assistant Attorney General; Acting Director of the Corporate Whistleblower Awards Pilot Program Patrick B. Gushue of the Criminal Division’s Money Laundering & Asset Recovery Section; Deputy Assistant Attorney General Lisa H. Miller of the Criminal Division’s Office of the Assistant Attorney General; Principal Deputy Chief Lorinda Laryea of the Criminal Division’s Fraud Section; Chief Counselor Brent Wible of the Criminal Division’s Office of the Assistant Attorney General; Chief Glenn S. Leon of the Criminal Division’s Fraud Section; Chief Margaret “Molly” Moeser of the Criminal Division’s Money Laundering & Asset Recovery Section; Principal Deputy Assistant Chief of the Health Care Fraud Unit Jacob N. Foster of the Criminal Division’s Fraud Section; Chief of the Program Management and Training Unit Jennifer Bickford of the Criminal Division’s Money Laundering & Asset Recovery Section; Assistant Chief Market Integrity & Major Fraud Unit Michael “Mike” O’Neill of the Criminal Division’s Fraud Section; Deputy Chief Program Management and Training Unit Raymond “Matt” Colon of the Criminal Division’s Money Laundering & Asset Recovery Section; and Attorney Advisor Mark H. Goldberg of the National Security Division.
The Attorney General’s Award for Fraud Prevention recognizes those who have been involved with the prevention, investigation, and prosecution of fraud and other white-collar crimes. The award is presented to the Endo Bankruptcy and Litigation Team: Assistant United States Attorney Peter Aronoff for the Southern District of New York; Assistant U.S. Attorney Tara Schwartz for the Southern District of New York; Special Agent Wende E. Bardfeld of the FBI; Trial Attorney Tara M. Shinnick of the Civil Division’s Consumer Protection Branch; Assistant U.S. Attorney Jean-David Barnea for the Southern District of New York; Diversion Investigator Stephanie K. Tait of the DEA; Assistant U.S. Attorney Alexandra Chase for the Southern District of Florida; Senior Trial Counsel Christopher Terranova of the Civil Division’s Fraud Section Commercial Litigation Branch; Trial Attorney Benjamin A. Cornfeld of the Civil Division’s Consumer Protection Branch; Supervisory Trial Attorney Kevin P. VanLandingham of the Civil Division’s Corporate/Financial Litigation; Assistant U.S. Attorney Matthew Feeley for the Southern District of Florida; Assistant Director of the Fraud Section Natalie A. Waites of the Civil Division’s Commercial Litigation Branch; Diversion Investigator Donna G. Richards of the DEA; Legal Administrative Specialist Angela Weddle for the Southern District of Florida; and Supervisory Trial Attorney Mary Schmergel of the Civil Division’s Corporate/Financial Litigation.
The Attorney General’s Award for Outstanding Contributions by a New Employee recognizes exceptional performance and notable accomplishments towards the Department’s mission by an employee with fewer than five years of federal career service.
The first Attorney General’s Award for Outstanding Contributions by a New Employee recognizes Chief Juan Castillo of the Federal Bureau of Prisons’ Human Resource Management Division, National Recruitment Office.
The second Attorney General’s Award for Outstanding Contributions by a New Employee recognizes Physical Security Specialist Nicholas R. Eubanks of the USMS Southern District of Alabama.
The Attorney General’s Award for Outstanding External Contributions recognizes individuals or teams who have demonstrated exceptional dedication and skill in fostering collaboration between government agencies and community stakeholders to enhance public safety or have rendered exceptionally helpful assistance to the Department in high-visibility litigation.
The first Attorney General’s Award for Outstanding External Contributions is presented to the Republican National Convention and Democratic National Convention Deployment Team: Conciliation Specialist Sean Barrett Community Relations Service’s South Region; Pearson Conciliation Specialist Kelly Hams of the Community Relations Service’s Midwest Region; Conciliation Specialist Kabrina W. Bass of the Community Relations Service’s Midwest Region; Conciliation Specialist Karl Jegeris of the Community Relations Service’s Midwest Region; Conciliation Specialist Joi Brown Dillard of the Community Relations Service’s South Region; Conciliation Specialist Dion Lyons of the Community Relations Service’s South Region; Conciliation Specialist Mildred Duprey de Robles of the Community Relations Service’s South Region; Conciliation Specialist Reginal M. Malden of the Community Relations Service’s South Region; Conciliation Specialist Clayton B. Fong of the Community Relations Service’s Mountain Central Region; Conciliation Specialist Kimberly L. McDonald of the Community Relations Service’s Atlantic North Region; Conciliation Specialist GusTavo A. Guerra Vasquez of the Community Relations Service’s West Region; Conciliation Specialist Michael Outlaw of the Community Relations Service’s Atlantic North Region; Conciliation Specialist Shanette Hall of the Community Relations Service’s Midwest Region; Conciliation Specialist Daniel Z. Rowe of the Community Relations Service’s South Region.
The second Attorney General’s Award for Outstanding External Contributions is the Project Safe Childhood Team: Project Safe Childhood Program Specialist Karen Legace for the District of Massachusetts; Assistant U.S. Attorney Anne Paruti for the District of Massachusetts; Special Agent Jennifer L. Gerega of the FBI Boston Field Office; Special Agent Matthew G. Fontaine of the FBI Boston Field Office; Special Agent Edward Bradstreet of HSI; Special Agent Virginia B. Toulouse of the FBI Boston Field Office; Special Agent Andrew Kelleher of HSI; Trooper DeShawn Brown Trooper of the Massachusetts State Police.
The John Marshall Awards are the Department’s highest awards presented to attorneys for contributions and excellence in specialized areas of legal performance.
The first John Marshall Award for Excellence in Litigation is presented to the United States v. Aldrich Prosecution Team: Victim Witness Coordinator Debbie Azua-Dillehay for the District of Colorado; Special Agent Ryan Molinari of ATF; Auditor Dana Chamberlin for the District of Colorado; Victim Specialist Alicia Wagner of the FBIE Denver Field Office; Assistant U.S. Attorney Alison Connaughty for the District of Colorado; Special Agent Jason R. Walter of the FBI Denver Field Office; Assistant U.S. Attorney Bryan Fields for the District of Colorado; Trial Attorney Maura D. White of the Civil Rights Division’s Criminal Section; and Special Agent Justin Kempf of the FBI Denver Field Office.
The second John Marshall Award is presented to the United States v. Westchester Joint Water Works Team: Assistant U.S. Attorney Samuel H. Dolinger for the Southern District of New York and Assistant U.S. Attorney Tomoko Onozawa for the Southern District of New York.
The third John Marshall Award is presented to the Aimenn Penny Investigation and Prosecution Team: Assistant U.S. Attorney Brian S. Deckert for the Northern District of Ohio; Special Agent Patrick B. Lentz of the FBI Cleveland Field Office; Special Agent Stacey Griggs of the FBI Cleveland Field Office; Intelligence Analyst Wendi Parker of the FBI Cleveland Field Office; Special Operations Specialist Megan Hixon of the FBI Cleveland Field Office; Assistant U.S. Attorney Matthew W. Shepherd for the Northern District of Ohio; Victim Witness Specialist Allison A. Kretz for the Northern District of Ohio; Special Agent Lane R. Thorum for the FBI Cleveland Field Office; Supervisory Special Agent Jacob C. Kunkle of the FBI’s Criminal Investigative Division; Special Agent Cleveland Nicholas H. Visnich of the FBI Field Office.
The fourth John Marshall Award is presented to the United States v. Andrew Fahie Prosecution Team: Trial Attorney Shane Butland Criminal Division’s Fraud Section; Assistant U.S. Attorney Sean T. McLaughlin for the Southern District of Florida; Assistant U.S. Attorney Kevin D. Gerarde for the Southern District of Florida; and Assistant U.S. Attorney Frederic (Fritz) Shadley for the Southern District of Florida.
The fifth John Marshall Award is presented to the Columbia River System Team: Senior Trial Attorney Michael R. Eitel of the Environment and Natural Resources Division’s Wildlife and Marine Resources Section; Senior Trial Attorney Romney S. Philpott of the Environment and Natural Resources Division’s Natural Resources Section; Trial Attorney David S. Frankel of the Environment and Natural Resources Division’s Appellate Section; Senior Trial Attorney Frederick H. Turner of the Environment and Natural Resources Division’s Wildlife and Marine Resources Section.
The sixth John Marshall Award is presented to the Binance Investigation and Prosecution Team: Trial Attorney Elizabeth R. Carr of the Criminal Division’s Money Laundering & Asset Recovery Section; Trial Attorney Alexander H. Wharton of the National Security Division’s Counterintelligence and Export Control Section; Deputy Chief of the Bank Integrity Unit Kevin G. Mosley Criminal Division’s Money Laundering & Asset Recovery Section; Assistant U.S. Attorney Michael W. Dion for the Western District of Washington; Trial Attorney Victor R. Salgado of the Criminal Division’s Money Laundering & Asset Recovery Section; Assistant U.S. Attorney Julia E. Jarrett for the District of Oregon; Deputy Chief Matthew A. Anzaldi of the National Security Division’s Nation Security Cyber Section; Assistant U.S. Attorney Jonas B. Lerman for the Western District of Washington; and Trial Attorney Beau Barnes of the National Security Division’s Counterintelligence and Export Control Section.
The John Marshall Award for Providing Legal Advice is presented to the Securing the Border Team: Attorney-Advisor Amanda Chuzi of the Office of Legal Counsel; Attorney-Advisor Louis Katz of the Office of Legal Counsel; Attorney-Advisor Jon Cowles of the Executive Office for Immigration Review’s Office of Policy, Immigration Law Division; Attorney-Advisor Mark Krass of the Office of Legal Counsel; Attorney-Advisor Conor Craft of the Office of Legal Counsel; Attorney-Advisor Lucas Lallinger of the Office of Legal Counsel; Attorney-Advisor Lauren Gallenstein of the Executive Office for Immigration Review’s Office of Policy, Immigration Law Division; Attorney-Advisor Grace Leeper of the Office of Legal Counsel; Attorney-Advisor Naomi Gilens of the Office of Legal Counsel; Attorney-Advisor Robert Charles Merritt of the Office of Legal Counsel; Attorney-Advisor Samantha Goldstein of the Office of Legal Counsel; Attorney-Advisor Dina Mishra of the Office of Legal Counsel; Honors Program Attorney Emily Gorrivan of the Executive Office for Immigration Review’s Office of Policy, Immigration Law Division; Counsel Nicholas Nasrallah of the Office of Legal Counsel; Senior Litigation Counsel Christina Greer of the Civil Division’s Office of Immigration Litigation; Attorney-Advisor Mariette Peltier of the Office of Legal Counsel; Special Counsel Rosemary Hart of the Office of Legal Counsel; Attorney-Advisor Caitlin E. Whaley of the Executive Office for Immigration Review’s Office of Policy, Immigration Law Division; and Supervisory Attorney Raechel J. Horowitz of the Executive Office for Immigration Review’s Office of Policy, Immigration Law Division.
The John Marshall Award for Appellate Litigation is presented to Trial Attorney David M. Lieberman of the Criminal Division’s Appellate Section.
Antitrust Division Releases 10-Year Workload Statistics ReportRead the Press Release
The Justice Department’s Antitrust Division today issued its 10-year workload statistics report, summarizing the Division’s work enforcing the federal antitrust laws from 2015 through 2024. These statistics can be found here.
The report reflects the critical enforcement and advocacy work the Antitrust Division has done on behalf of American consumers, taxpayers, and workers. This includes efforts to put a stop to conduct by monopolists or groups of competitors that harm consumers and workers; block mergers that threaten competition; prosecute anticompetitive crimes; ensure proper application of the antitrust laws in courts throughout the United States; and advocate for pro-competition policies across federal and state governments and with other countries.
More information about the Antitrust Division can be found at www.justice.gov/atr.
Owner of Oregon Tree Company Indicted for Employment Tax Crimes and Not Filing Tax ReturnsRead the Press Release
A federal grand jury in Portland, Oregon, returned an indictment earlier this week charging a business owner with not paying employment taxes and not filing tax returns.
According to the indictment, Joyce Leard, of Boring, Oregon, owned and operated Mr. Tree Inc., a Happy Valley, Oregon-based company that provided tree removal and landscaping services to customers. Between 2018 and 2020, Mr. Tree allegedly employed approximately 50 to 75 employees. Leard was allegedly responsible for withholding Social Security, Medicare and income taxes from her employees’ wages and paying those funds over to the IRS each quarter. She was also responsible for filing quarterly tax returns with the IRS.
From the fourth quarter of 2018 through the fourth quarter of 2020, Leard allegedly withheld approximately $655,000 from employees’ wages but did not pay over all those funds to the IRS or file quarterly tax returns as required by law. Instead of paying all the funds over, Leard allegedly purchased real estate that was titled in her name. Finally, according to the indictment, Leard did not file individual tax returns for 2018 through 2020, as required by law.
If convicted, Leard faces a maximum penalty of five years in prison for each employment tax charge and a maximum penalty of one year in prison for each failure to file a return charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys J. Parker Gochenour and Megan E. Wessel of the Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mexico National Sentenced to over 11 Years for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Susan Lehr announced that Sergio David Jaime-Zazueta, age 45, of Mexico, was sentenced on January 16, 2025, in federal court in Lincoln, Nebraska for one count of possession with intent to distribute 500 grams or more of methamphetamine. United States District Judge Susan M. Bazis sentenced Jaime-Zazueta to a total of 135 months’ imprisonment. There is no parole in the federal system. After Jaime-Zazueta’s release from prison, he will begin a 3-year term of supervised release.
On April 25, 2024, Jaime-Zazueta was contacted as the driver and sole occupant of a vehicle on Interstate 80 in Seward County, Nebraska. Jaime-Zazueta agreed to speak with law enforcement. He said that he was driving from Stockton, California to St. Louis, Missouri for work, but he kept changing his story about the route he took. Eventually, a K9 performed a sniff on the vehicle and alerted.
Inside the vehicle, law enforcement found approximately 200 pounds of a substance that tested positive for meth. The meth was found in a box in the rear cargo area of the vehicle and in garbage bags on the back seat of the vehicle. The box in the cargo area contained 75 2-lb bags of meth. The garbage bags on the back seat contained 25 2-lb bags of meth.
After his arrest, Jaime-Zazueta agreed to speak with the DEA through the aid on an interpreter. Jaime-Zazueta informed the DEA that he was transporting the drugs for someone in Mexico from Los Angeles, California to St. Louis, Missouri. This was his second trip and he had previously driven 100 pounds of meth from Los Angeles to St. Louis.
This case was investigated by the Drug Enforcement Administration and the Seward County Sheriff’s Office.
Maryland Attorney and Poker Player Charged with Tax Crimes and Making False Statements to Mortgage LendersRead the Press Release
A federal grand jury in Greenbelt, Maryland, returned a 22-count indictment today, charging a Maryland attorney with tax evasion, assisting in the preparation of false tax returns, failure to pay taxes and making false statements to two separate mortgage lenders.
According to the indictment, between 2016 and 2023, Thomas C. Goldstein, of Chevy Chase, Maryland, and Washington, D.C., was the sole owner of Goldstein & Russell P.C., a boutique law firm specializing in appellate litigation, including litigation before the U.S. Supreme Court. Goldstein was allegedly also a high-stakes poker player, frequently playing in games involving millions of dollars.
During that time, Goldstein allegedly engaged in a scheme to evade his taxes. Goldstein allegedly took various steps to carry out his scheme including diverting legal fees that were due to the law firm to his personal bank account, and then using them to pay personal poker-related debts; using the law firm’s assets to satisfy his personal poker debts and causing those payments to be falsely classified as “legal fee” expenses on the firm’s books and records; and using firm assets to pay salaries and health insurance premiums for people with whom Goldstein had a personal relationship but who performed little or no work for the law firm and did not qualify for its health insurance.
Goldstein also allegedly did not report, or falsely understated, millions of dollars of gambling winnings on his tax returns. In addition, for 2016 through 2021, except 2018, Goldstein allegedly did not pay the taxes he self-reported were due on his returns, while simultaneously spending millions of dollars on personal expenses such as gambling debts, travel, vacation rentals and luxury goods.
In 2021, Goldstein also allegedly submitted false mortgage applications to two separate mortgage lending companies, seeking financing to purchase a $2.6 million home in Washington, D.C. On those mortgage applications — which required Goldstein to list all his liabilities and debts — Goldstein allegedly omitted millions of dollars of liabilities, including over $14 million he owed at the time on two promissory notes, as well as taxes he owed to the IRS. Goldstein’s false statements to one of the mortgage lenders allegedly resulted in his obtaining a $1.98 million loan.
If convicted, Goldstein faces a maximum penalty of five years in prison for each of the tax evasion charges; a maximum penalty of three years in prison for each count of assisting in the preparation of false tax returns; a maximum penalty of one year in prison for each of count of willful failure to pay taxes; and a maximum penalty of 30 years in prison for each count of making false statements to mortgage lenders. He also faces a period of supervised release, monetary penalties and restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS Criminal Investigation and the FBI are investigating the case.
Senior Litigation Counsel Stanley Okula and Trial Attorneys Emerson Gordon-Marvin and Hayter Whitman of the Tax Division and Assistant U.S. Attorney Patrick Kibbe for the District of Maryland are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department’s Civil Rights Division Issues Report Highlighting Critical Enforcement Work over the Past Four YearsRead the Press Release
The Justice Department’s Civil Rights Division today issued its 2021-2024 Civil Rights Division Highlights Report, outlining various accomplishments of the division and its partners in enforcing the nation’s civil rights laws and the Constitution from 2021-2024.
The report reflects upon a portion of the critical civil rights work across the division’s 11 sections where the career staff and leadership worked to bring to justice those who harmed, threatened and/or intimidated people because of their race, ethnicity, national origin, religion, gender, sexual orientation, gender identity, English proficiency or disability status.
“Our Civil Rights Division has doggedly pursued justice for our nation’s most vulnerable through enforcement of our civil rights laws by combating hate and exploitation, promoting fairness and accountability in our criminal justice system, strengthening democracy, and expanding and ensuring opportunity and access for all. This report provides snapshots of some of that work,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Over the past four years, I have had the privilege and honor of leading the Civil Rights Division and overseeing this crucial work. I am incredibly grateful for the tireless efforts of our career employees who have steadfastly abided by Attorney General Merrick B. Garland’s charge to uphold the rule of law, protect civil rights and keep our country and communities safe. And I am indebted to our communities and advocates who bravely asserted their rights and shared their stories in our common pursuit of justice and fairness.”
More information about the Civil Rights Division can be found at www.justice.gov/crt. To report a possible civil rights violation, please visit www.civilrights.justice.gov/.
Justice Department and Federal Trade Commission Issue Antitrust Guidelines on Business Practices that Impact WorkersRead the Press Release
The Justice Department and Federal Trade Commission (FTC) today jointly issued Antitrust Guidelines for Business Activities Affecting Workers. The guidelines, which replace the 2016 Antitrust Guidance for Human Resource Professionals, explain how the Justice Department and FTC identify and assess the antitrust risks of business practices affecting workers.
“For more than a century, the antitrust laws have protected workers from unlawful schemes, abuses of bargaining power, and restrictions on their mobility,” said Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “The Antitrust Division will continue to work with its federal and state partners to ensure the economic freedom and opportunity of American workers and their families.”
The guidelines provide examples and cite cases to explain how the agencies analyze business practices that may violate the antitrust laws, such as information sharing, restrictions on worker mobility, abuses of bargaining power and other restrictive, exclusionary or predatory employment conditions. The guidelines also explain that certain types of agreements between employers, such as wage-fixing or no-poach agreements, may expose companies and executives to criminal liability under the antitrust laws.
The agencies encourage members of the public to report potential antitrust violations, and the guidelines provide information on how to submit these complaints.
Justice Department Secures Agreement with Sangamon County, Illinois and County Agencies Resolving Race and Disability Discrimination InvestigationRead the Press Release
Note: The original headline was updated to fall within character count limitations
The Justice Department announced today an agreement with the Sangamon County Sheriff’s Office (SCSO), the Sangamon County Central Dispatch System (SCCDS), and Sangamon County, Illinois, to resolve an investigation of race and disability discrimination in the provision of policing and dispatch services.
The department launched its investigation based on complaints and reports about an SCSO deputy’s fatal shooting of Sonya Massey, a Black woman experiencing a mental health crisis, while responding to Ms. Massey’s 911 call for help.
The Justice Department’s Civil Rights Division investigated the entities’ compliance with Title VI of the Civil Rights Act of 1964 (Title VI), the nondiscrimination provisions of the Omnibus Crime Control and Safe Streets Act (Safe Streets Act), and Title II of the Americans with Disabilities Act (ADA). Title VI and the Safe Streets Act collectively prohibit discrimination on the basis of race, color, national origin, sex and religion by recipients of federal financial assistance, such as SCSO. Title II of the ADA prohibits discrimination on the basis of disability by public entities.
“The death of Sonya Massey was a terrible tragedy for a woman experiencing a mental health crisis, her family, and the entire Sangamon County community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement reflects Sangamon County’s commitment to instituting reform and taking action that will help improve public safety and restore trust with the community in the road ahead.”
In response to the investigation, the Sangamon County State’s Attorney’s Office worked cooperatively with the department to reach a resolution agreement to ensure that SCSO has the tools and training to conduct its policing activities in a nondiscriminatory manner and that the County and SCCDS provide dispatch services in a nondiscriminatory manner.
Under the agreement, the entities will review and update policies, rules, and procedures and provide training on a variety of topics, including non-discriminatory policing and interactions with individuals with behavioral health disabilities. The agreement requires the development and implementation of a mobile crisis team program, which will include trained behavioral health staff who timely respond to individuals needing urgent behavioral health assistance. The agreement also provides for the development of a Community Engagement Plan to ensure collaborative problem-solving and nondiscrimination in policing, as well as to increase transparency and community confidence. The agreement sets forth a framework for data collection and reporting for a two-year period of departmental monitoring, among other provisions. The agreement does not constitute any admission of liability by the entities, and the department has not reached a finding of discrimination.
Nondiscrimination under Title VI, the Safe Streets Act, and the ADA is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available at www.justice.gov/crt.
Members of the public may report possible civil rights violations at civilrights.justice.gov/report/.
Justice Department Issues Findings Report Regarding Louisiana State PoliceRead the Press Release
Following a comprehensive investigation, the Justice Department announced today its findings that the Louisiana State Police (LSP) engage in a pattern or practice of conduct that violates the Fourth Amendment of the U.S. Constitution. Specifically, the Justice Department finds that LSP uses excessive force, including unjustified uses of Tasers, escalation of minor incidents and use of force on people who did not pose a threat.
The report acknowledges LSP’s ongoing reforms. Among other improvements, LSP has revised its use-of-force policy, created a Force Investigation Unit for serious uses of force and updated training. More is needed to remedy the violations the report identifies. The department is committed to working collaboratively with the state and LSP to continue to fortify these reforms.
The Justice Department opened this investigation on June 9, 2022, under 34 U.S.C. § 12601.
Information about the Civil Rights Division is available at www.justice.gov/crt.
Justice Department Files Voting Rights Suit Against Houston County, GeorgiaRead the Press Release
The Justice Department has filed a lawsuit against Houston County, Georgia, to challenge the county’s at-large method of electing the Houston County Board of Commissioners.
The lawsuit alleges that the county’s current at-large method of electing county commissioners results in Black citizens having less opportunity than other members of the electorate to participate in the political process and to elect candidates of choice, in violation of Section 2 of the Voting Rights Act. Black residents make up more than 31% of the county’s voting-age population. In recent years, Black-preferred candidates have run for the Board of Commissioners and have routinely lost, despite the county’s sizeable and growing Black population.
“The Voting Rights Act guarantees that all eligible citizens have an equal opportunity to participate in the democratic process and to elect representatives of their choice, regardless of race or ethnicity,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department has a solemn duty to protect the right to vote by enforcing the Voting Rights Act and ensuring that all communities have a fair and equal chance to participate. We look forward to working with Houston County officials to bring the county into compliance with the Voting Rights Act.”
The complaint, filed in the U.S. District Court for the Middle District of Georgia, alleges that changing how commissioners are elected can create opportunities for Black voters to elect candidates of their choice to the five-member Board of Commissioners. For example, by electing commissioners from fairly drawn single-member districts rather than countywide, Black voters would have an equal opportunity to elect a representative of their choice to the Board. The lawsuit seeks a federal court order implementing a new method of electing the Houston County Board of Commissioners.
The Justice Department looks forward to continued discussions with Houston County toward resolution of this matter.
More information about voting and elections is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931.
Fayat Group to Pay $11M for Violations of the Clean Air Act for Sale of Nonroad Equipment Containing Noncompliant Diesel EnginesRead the Press Release
The Justice Department and the Environmental Protection Agency (EPA) today announced a settlement agreement with Fayat S.A.S. and nine of its subsidiaries — BOMAG GmbH, Bomag Americas Inc., BOMAG (China) Construction Machinery Co. Ltd., MARINI S.p.A., RAVO B.V., Charlatte of America Inc., PTC S.A.S., Secmair S.A.S. and MATHIEU S.A. — for alleged violations of the Clean Air Act’s mobile source emission standards regulations.
The complaint alleges that, between 2014 and 2018, Fayat and its subsidiaries illegally imported and sold hundreds of pavers, rollers and other nonroad equipment containing diesel engines that failed to meet Clean Air Act emission requirements. The complaint also alleges that Fayat failed to comply with Clean Air Act labeling and reporting requirements. The agreement requires Fayat to pay a civil penalty of $11 million and requires the company to complete a project to reduce the harm caused by excess nitrogen oxides and particulate matter emissions.
“Fayat failed to ensure that the equipment it introduced into the United States market complied with Clean Air Act requirements designed to protect the public’s health from harmful emissions,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “We will not tolerate violations of Clean Air Act standards. The settlement requires both a substantial civil penalty and a project that will reduce emissions in the Mobile, Alabama, area and contribute to improved public health.”
“Fayat’s import of nonroad vehicles with outdated diesel engines violates the Clean Air Act standards for emissions from mobile sources and threatened exposure to harmful diesel air emissions,” said Acting Assistant Administrator Cecil Rodrigues for EPA’s Office of Enforcement and Compliance Assurance. “Today’s announcement demonstrates that EPA will hold accountable companies that put outdated equipment into commerce that pollutes the air and risks exposing communities to toxic air pollutants.”
In addition to paying a civil penalty, Fayat will, as part of the agreement, undertake a project to reduce the harm from the emissions. The company will retrofit a tugboat currently in service in Mobile, Alabama. Retrofitting the tugboat includes removing and destroying two engines and two auxiliary generators and replacing them with two new engines and two new generators that meet current emission controls.
More information regarding this settlement is available from the Fayat Clean Air Act Violations Settlement Summary.
The proposed consent decree, lodged in the U.S. District Court for the District of Columbia, is subject to a public comment period and final court approval. Information on submitting comment and access to the settlement agreement is available at www.justice.gov/enrd/consent-decrees.
EPA investigated the case.
Attorneys with the ENRD’s Environmental Enforcement Section are handling the case.
El Departamento de Justicia llega a un acuerdo con el Condado de Sangamon, Illinois y agencias del condado para resolver una investigación de discriminación por motivos de discapacidad y razaRead the Press Release
Nota: El titular original fue actualizado para cumplir con el limite de caracteres
El Departamento de Justicia anunció hoy un acuerdo con la Oficina del Sheriff del Condado de Sangamon (SCSO), el Sistema Central de Despacho del Condado de Sangamon (SCCDS) y el Condado de Sangamon, Illinois, para resolver una investigación de discriminación por motivos de raza y discapacidad en la prestación de servicios de policía y despacho.
El Departamento inició su investigación con base en quejas e informes sobre un incidente en el que Sonya Massey, una mujer negra que estaba experimentando una crisis de salud mental, fue disparada mortalmente por un adjunto de la SCSO mientras respondía a la llamada de 911 de auxilio de la Sra. Massey. La División de Derechos Civiles del Departamento de Justicia investigó el cumplimiento por parte de las entidades con el Título VI de la ley de Derechos Civiles de 1964 (Título VI), las disposiciones antidiscriminatorias de la ley General de Control de Delitos y Calles Seguras (ley de Calles Seguras) y el Título II de la ley de Estadounidenses con Discapacidades (ADA, por sus siglas en inglés). El Título VI y la ley de Calles Seguras prohíben, en su conjunto, la discriminación por motivos de raza, color de piel, origen nacional, sexo o religión por parte de entidades que reciben apoyo financiero federal, tal como la SCSO. El Título II de la ADA prohíbe que las entidades públicas discriminen por motivos de discapacidad.
«La muerte de Sonya Massey fue una terrible tragedia para una mujer que estaba en medio de una crisis de salud mental, para su familia y para toda la comunidad del Condado de Sangamon», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Este acuerdo refleja el compromiso del Condado de Sangamon de instituir reformas y tomar medidas que ayudarán a mejorar la seguridad pública y restaurar la confianza de la comunidad en el camino futuro».
En respuesta a la investigación, la Oficina del Fiscal Estatal para el Condado de Sangamon trabajó en cooperación con el Departamento para alcanzar un acuerdo conciliatorio para garantizar que la SCSO tenga las herramientas y la formación para llevar a cabo sus actividades de vigilancia policial de forma no discriminatoria y que el Condado y el SCCDS proporcionen servicios de despacho de forma no discriminatoria.
En virtud del acuerdo, las entidades revisarán y actualizarán los procedimientos, políticas y reglas y proporcionarán capacitaciones sobre una variedad de temas, incluida la vigilancia policial no discriminatoria y las interacciones con personas con discapacidades de salud del comportamiento. El acuerdo requiere el desarrollo y la implementación de un programa de equipo de crisis móvil, que incluirá personal capacitado en la salud del comportamiento que responda oportunamente a las personas que necesitan asistencia urgente en lo que se refiere a su salud del comportamiento. El acuerdo también prevé el desarrollo de un plan de compromiso con la comunidad para garantizar la resolución colaborativa de problemas y la ausencia de discriminación en la vigilancia policial, así como para aumentar la transparencia y la confianza de la comunidad. El acuerdo establece un marco para la recopilación de datos y la presentación de informes durante un período de dos años de supervisión departamental, entre otras disposiciones. El acuerdo no constituye ninguna admisión de responsabilidad por parte de las entidades, y el Departamento no ha llegado a un hallazgo de discriminación.
La no discriminación en virtud del Título VI, la ley de Calles Seguras y la ADA es una de las principales prioridades de la División de Derechos Civiles. Hay más información disponible sobre la División de Derechos Civiles en www.justice.gov/crt.
Los miembros del público pueden denunciar posibles infracciones de los derechos civiles en civilrights.justice.gov/report/.
Justice Department Sues to Shut Down Florida Tax Return PreparersRead the Press Release
The Justice Department today filed a civil injunction suit in federal court in Tampa, Florida, to enjoin Darryl J. Madison, Malik F. Eugene, Yvette Madison, Marlesa J. Brown and Madison & Sons Enterprises — doing business as Madison Tax Services — from owning or operating a tax return preparation business and preparing tax returns for others.
The complaint alleges that Darryl Madison operated and prepared returns through Madison Tax Services. The complaint alleges that Madison and his contractors — Eugene, Yvette Madison and Brown — prepared and filed tax returns that falsely reduced their customers’ taxable income and improperly increased their customers’ refunds through a variety of schemes, including inflating real estate expenses, falsifying charitable donation deductions, fabricating or inflating business losses and falsely claiming residential energy credits to which their customers were not entitled.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $79,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found 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.
Madison Complaint.pdfJustice Department Secures Agreement with the Orange County, California, District Attorney’s Office to Enhance and Sustain Reforms on Custodial InformantsRead the Press Release
The Justice Department announced today that it has entered into a settlement agreement with the Orange County, California, District Attorney on the use of custodial informants at the Orange County jails in California. The agreement resolves the department’s civil investigation finding that custodial informant activity by the Orange County District Attorney’s Office (OCDA) from 2007 through 2016 with the Orange County Sheriff’s Department (OCSD) violated criminal defendants’ right to counsel under the Sixth Amendment and right to due process of law under the 14th Amendment to the U.S. Constitution.
Under the agreement, the District Attorney agrees to continue implementing reforms to protect against misuse of custodial informants at the Orange County jails and to disclose to criminal defendants exculpatory evidence about custodial informants, in accordance with constitutional guarantees to a fair trial and right to counsel. Specifically, the District Attorney agrees to maintain changes to OCDA policies, training, document and information systems and internal audits, as well as to engage with representatives of the Orange County criminal justice system on additional improvements. The department will also have full and direct access to independently validate that the reforms have taken hold at OCDA and are achieving their intended results.
“Under the Sixth Amendment, law enforcement cannot use custodial informants as their agents to elicit incriminating statements from defendants represented by counsel,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We commend the District Attorney and his staff for initiating corrective action at OCDA to comply with constitutional requirements. The District Attorney’s proactive efforts, together with today’s agreement, will not only protect the constitutional rights of individual defendants; they will also help restore the public’s confidence in the fundamental fairness of the criminal justice system in Orange County.”
The out-of-court agreement is the result of extensive cooperation from the District Attorney and members of OCDA following the release of the department’s investigative findings in October 2022. The agreement is also the result of systemic improvements initiated by the District Attorney, including suspending the use of custodial informants without his express, prior approval in 2016.
The department opened its investigation into OCDA and OCSD in 2016. The evidence uncovered by the department revealed that custodial informants in the Orange County Jail system acted as agents of law enforcement to elicit incriminating statements from defendants represented by counsel and that, for years, Orange County sheriff deputies maintained and concealed systems to track, manage and reward those custodial informants. The evidence also revealed that Orange County prosecutors failed to seek out and disclose exculpatory information regarding custodial informants to defense counsel.
The Civil Rights Division’s Special Litigation Section conducted the investigation pursuant to 34 U.S.C. § 12601. The statute prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The department’s negotiations with the Orange County Sheriff on remedial measures at OCSD are ongoing.
Since January 2021, the division has opened 12 investigations into law enforcement agencies. The section is enforcing 15 agreements with law enforcement agencies and two post-judgment orders. The department also reached a court enforceable agreement with Louisville and Minneapolis to resolve its findings. Both are pending review by the court.
The department’s investigative findings from October 2022 can be found here.
Information about the Civil Rights Division is available at www.justice.gov/crt.
Grand Jury Charges Hunting Guide and Company with Wildlife ViolationsRead the Press Release
A grand jury in Seattle returned an indictment today charging a Washington man and his company with conspiracy and for violating the Lacey Act by transporting birds that had been hunted in violation of the Migratory Bird Treaty Act (MBTA).
The indictment alleges that, from August 2022 to January 2023, Branden Trager, 46, of Brush Prairie, Washington, and his guiding company, Mayhem Services LLC, guided three hunting parties in Canada to hunt waterfowl when Trager was not permitted under Canadian law to do so.
According to the indictment, Trager and Mayhem Services took hunters across the U.S.-Canadian border near Blaine, Washington. The hunts targeted the harlequin duck (Histrionicus histrionicus), a small sea duck with a habitat ranging from Alaska to California. Hunters prize the harlequin as a trophy and as part of a challenge to hunt 41 North American waterfowl species. Washington closed harlequin hunting for the 2022-2023 season, but limited hunting remained open in British Columbia.
The indictment alleges that the hunters paid Trager thousands of dollars to guide them in Canada, and Trager falsely told Canadian and Homeland Security authorities that he was hunting with friends. Trager allegedly conspired with a Canadian taxidermist to have the hunted birds shipped back to the United States in violation of the Lacey Act.
The Lacey Act is the nation’s oldest wildlife trafficking law. It prohibits, among other things, transporting wildlife that had been illegally taken under federal, state, tribal or foreign law. The MBTA is a U.S. law that implemented treaties with Canada and other nations to ensure sustainable populations of migratory birds. The MBTA imposed regulations on bird hunting, such as limits on the quantity and hunting methods allowed to take migratory birds.
An initial appearance hearing in federal court is scheduled for Jan. 23. The maximum penalty for both the conspiracy and Lacey Act charges is five years in prison and a $250,000 fine, or twice the economic gain or loss.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) and Deputy Assistant Director Keith Toomey of the U.S. Fish and Wildlife Service (USFWS)’s Office of Law Enforcement made the announcement.
The USFWS’ Office of Law Enforcement led the investigation along with Homeland Security Investigations, British Columbia Conservation Officer Service and Washington Department of Fish & Wildlife.
Senior Trial Attorney Ryan Connors and Trial Attorney Sarah Brown of ENRD’s Environmental Crimes Section are prosecuting the case with assistance from the U.S. Attorney’s Office for the Western District of Washington.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
False Claims Act Settlements and Judgments Exceed $2.9B in Fiscal Year 2024Read the Press Release
Settlements and judgments under the False Claims Act exceeded $2.9 billion in the fiscal year ending Sept. 30, 2024, Principal Deputy Associate Attorney General Benjamin C. Mizer and Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, announced today. The government and whistleblowers were party to 558 settlements and judgments, the second highest total after last year’s record of 566 recoveries, and whistleblowers filed 979 qui tam lawsuits, the highest number in a single year. Settlements and judgments since 1986, when Congress substantially strengthened the civil False Claims Act, now total more than $78 billion.
“The Department’s enforcement of the False Claims Act this past year demonstrates its continued commitment to pursuing those who seek to defraud the American taxpayers,” said Principal Deputy Associate Attorney General Mizer. “The False Claims Act and its whistleblower provisions remain a critical tool in protecting the public fisc and ensuring that taxpayer funds serve the purposes for which they were intended.”
“The Department places a high priority on fighting fraud and abuse in federal programs,” said Principal Deputy Assistant Attorney General Boynton, head of the Justice Department’s Civil Division. “The results announced today highlight once again that such conduct will not be tolerated, and that those who knowingly misuse taxpayer funds will be held accountable.”
The False Claims Act imposes treble damages and penalties on those who knowingly and falsely claim money from the United States or knowingly fail to pay money owed to the United States. The False Claims Act thus safeguards government programs and operations that provide access to medical care, support our military and first responders, protect American businesses and workers, help build and repair infrastructure, offer disaster and other emergency relief, and provide many other critical services and benefits. The resolutions in fiscal year 2024 also reflect the Department’s focus on key enforcement priorities, including combating health care fraud, the opioid epidemic, fraud in pandemic relief programs, and violations of cybersecurity requirements in government contracts and grants.
Of the more than $2.9 billion in False Claims Act settlements and judgments reported by the Justice Department this past fiscal year, over $1.67 billion related to matters that involved the health care industry, including managed care providers, hospitals and other medical facilities, pharmacies, pharmaceutical companies, laboratories, and physicians. The amounts included in the $1.67 billion reflect recoveries arising only from federal losses, but in many of these cases, the Department was instrumental in recovering additional amounts for state Medicaid programs.
The Justice Department continued its commitment to use the False Claims Act to deter and redress fraud by individuals as well as corporate entities. Such efforts deter future fraud, incentivize changes in both corporate and individual behaviors, ensure that the proper parties are held responsible, and promote the public’s confidence in our justice system.
The Department also remained committed to incentivizing and rewarding entities and individuals that self-disclose misconduct, demonstrably cooperate in the course of an investigation, and take effective remedial measures. Multiple settlements over the last year acknowledged such cooperative measures and reflected credits afforded to the defendants in the form of reduced penalties or damage multiples in connection with the resolution, including several of the matters discussed in more detail below. These cooperative measures included self-disclosures, assistance with the determination of government losses, disclosures of internal investigations and facts not known to the government, and remedial measures such as implementing tracking system enhancements or terminating or separating employees.
In 1986, Congress strengthened the False Claims Act by increasing incentives for whistleblowers to file lawsuits alleging false claims on behalf of the government. These whistleblowers, or qui tam, actions comprise a significant percentage of the False Claims Act cases that are filed. Qui tam cases may be pursued by the government or the whistleblower, and this past year, significant recoveries were obtained by both. When a qui tam action is successful, the whistleblower, also known as the relator, typically receives a portion of the recovery ranging between 15% and 30%. The 979 qui tam suits filed in fiscal year 2024 breaks the prior record set in 2013, and this past year, the Justice Department reported settlements and judgments exceeding $2.4 billion in these and earlier-filed qui tam suits.
The $2.9 billion in settlements and judgments announced today does not include two significant settlements occurring just after the end of the fiscal year.
On Oct. 10, 2024, Teva Pharmaceuticals USA Inc., the largest generic drug manufacturer in the country, agreed to pay $425 million to resolve allegations that it violated the False Claims Act by paying copays for Medicare patients for the multiple sclerosis drug Copaxone while steadily raising the drug’s price. Teva further agreed to pay $25 million to resolve allegations that it conspired with other generic drug manufacturers to fix prices for certain drugs and that the benefits Teva received under its price fixing scheme constituted illegal kickbacks. This is the seventh resolution arising from the Department’s investigation of price fixing by generic drug manufacturers.
On Oct. 16, 2024, Raytheon Company paid $428 million to resolve allegations that it knowingly provided false cost and pricing data when negotiating with the Department of Defense for numerous government contracts and double billed on a weapons maintenance contract, leading to Raytheon receiving profits in excess of negotiated rates. This is the second largest government procurement fraud recovery under the False Claims Act in history.
Representative examples of False Claims Act matters pursued by the government and whistleblowers this past fiscal year are discussed below.
HEALTH CARE FRAUD
In fiscal year 2024, health care fraud remained a leading source of False Claims Act settlements and judgments. These recoveries restore funds to federal programs such as Medicare, Medicaid, and TRICARE, the health care program for service members and their families. But just as important, in many cases, enforcement of the False Claims Act also protects patients from medically unnecessary or potentially harmful actions. As in years past, the act was used to pursue matters involving a wide array of health care providers, goods, and services.
Opioid Epidemic
The Justice Department continued its pursuit of health care providers, pharmaceutical companies and pharmacies that contributed to and exacerbated the opioid crisis.
Endo Health Solutions, which is in bankruptcy, agreed that the United States has an allowed, unsubordinated, general unsecured claim of $475.6 million in the bankruptcy to resolve, among other things, allegations relating to losses to federal healthcare programs that paid for Opana ER, an opioid drug sold and marketed by Endo. The Department alleged that Endo used an aggressive scheme that marketed Opana ER to high-volume prescribers of opioids, including many prescribers that Endo knew were prescribing Opana ER or other opioids for non-medically accepted indications.
Rite Aid Corporation and 10 subsidiaries and affiliates paid $7.5 million and agreed to provide to the United States an allowed, unsubordinated, general unsecured claim of $401.8 million in Rite Aid’s bankruptcy case to resolve allegations that Rite Aid knowingly dispensed unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not issued in the usual course of professional practice and/or were not valid prescriptions, or were not for a medically accepted indication. The unlawful prescriptions included prescriptions for the dangerous, highly diverted combination of drugs known as “the trinity,” and prescriptions for excessive quantities of opioids, such as highly addictive oxycodone and fentanyl.
Dr. Gregory Gerber agreed to a consent judgment that, among other things, requires him to pay $4.7 million arising from allegations that he unlawfully issued prescriptions without a legitimate medical basis for opioids and other controlled substances, that one patient died from an overdose of fentanyl patches prescribed by Gerber, and that Gerber received kickback payments from a drug manufacturer. Gerber was also sentenced to 42 months in prison and one year of home confinement in a related criminal case.
A chain of substance use disorder treatment clinics called Crossroads paid $863,934 to resolve allegations that the clinics defrauded the Medicaid program by billing for treatment services they did not provide by, for example, billing for comprehensive medical examinations when only a regular check-in visit occurred.
Unnecessary Services and Substandard Care
The Justice Department also pursued and resolved matters in which providers billed federal health care programs for medically unnecessary services and substandard care.
Strauss Ventures LLC, doing business as The Grand Health Care System, and 12 affiliated skilled nursing facilities agreed to pay $21.3 million to resolve allegations that they knowingly billed federal health care programs for therapy services that were unreasonable, unnecessary or unskilled, or that simply did not occur as billed. As part of the settlement, the company admitted it had implemented quotas relating to beneficiaries’ length of stay and to the percentages of beneficiaries billed at the highest reimbursement rate, resulting in some Medicare beneficiaries staying on therapy longer than was reasonable and medically necessary.
Acadia Healthcare Company Inc. paid $16.6 million to resolve allegations that six of its health facilities billed for medically unnecessary inpatient behavioral health services and failed to properly discharge beneficiaries when they no longer needed inpatient treatment and had improper and excessive lengths of stay. The United States further alleged that Acadia failed to provide adequate staffing, training and/or supervision of staff, which resulted in assaults, elopements, suicides and other harm resulting from these staffing deficiencies, and failed to provide active treatment, to develop and/or update individualized assessments and treatment plans, to provide adequate discharge planning, and to provide required individual and group therapy.
Daniel Hurt, who owned and/or operated Fountain Health Services LLC, Verify Health, Landmark Diagnostics LLC, First Choice Laboratory LLC, and Sonoran Desert Pathology Associates LLC, agreed to pay over $27 million, based on his ability to pay, to resolve allegations that he and his companies received payments from Medicare for cancer genomic tests that were not medically necessary and were procured through illegal kickbacks.
Medicare Advantage Matters
The Justice Department continued to pursue cases alleging false claims in the Medicare Advantage (or Medicare Part C) program. As Medicare Part C is now the largest component of Medicare, both in terms of federal dollars spent and the number of beneficiaries impacted, the work of the Justice Department in this area is of critical importance.
Oak Street Health, a wholly-owned subsidiary of CVS Health since 2023, paid $60 million to resolve allegations that it paid kickbacks to third-party insurance agents in exchange for recruiting seniors to Oak Street’s primary care clinics. Under the Medicare Advantage Program, Medicare beneficiaries have the option to obtain their health care through privately-operated insurance plans known as MA plans, some of which contract with health care providers, including Oak Street, to provide their plan members with primary care services. The United States alleged that the Oak Street Health payments to the agents improperly incentivized them to base their referrals and recommendations on the financial motivations of Oak Street Health and of the agents rather than the best interests of seniors.
In addition to this matter, the Justice Department continued to litigate a number of other cases involving the Medicare Advantage program, including actions against UnitedHealth Group, Elevance Health (formerly Anthem), and the Kaiser Permanente consortium.
Unlawful Kickbacks and Stark Law Violations
Kickbacks paid or received by health care providers undermine the integrity of federal health care programs by tainting medical decision-making, increasing health care costs, and adversely affecting competition. Federal law prohibits the willful solicitation or payment of illegal remuneration to induce the purchase of a good or service paid for by a federal health care program. The Stark Law seeks to safeguard the integrity of the Medicare program by prohibiting billing for certain services when the referring physician and the entity submitting the claim have a financial relationship that does not satisfy one of the statute’s exceptions.
Community Health Network Inc. (Community) paid $345 million to resolve allegations that it submitted claims to Medicare for services that were referred in violation of the Stark Law. The United States alleged that the compensation Community paid to certain physician groups was well above fair market value, and that Community awarded bonuses to physicians that were tied to the number of their referrals. The United States alleged that senior management at Community embarked on an illegal scheme to recruit physicians for employment for the purpose of capturing their lucrative “downstream referrals.”
DaVita Inc. paid $34.5 million to resolve allegations that it paid kickbacks to a competitor to induce referrals to a former subsidiary that provided pharmacy services for dialysis patients. As part of the improper arrangement, the United States alleged that DaVita agreed to acquire certain European dialysis clinics and agreed to purchase dialysis products from the competitor. The United States also alleged that DaVita paid additional kickbacks to nephrologists and vascular physicians to induce referrals to DaVita’s dialysis centers.
Prema Thekkek, her management company Paksn Inc., and six skilled nursing facilities owned by Thekkek and/or operated by Paksn entered into a $45.6 million consent judgment to resolve allegations they paid kickbacks to physicians in the form of medical directorships to induce patient referrals.
RDx Bioscience Inc. (RDx) and its owner and Chief Executive Officer Eric Leykin paid $10.3 million to resolve allegations that they paid kickbacks in the form of commissions based on the volume and value of referrals to independent contractor marketers to arrange for and recommend that healthcare providers order RDx laboratory tests, as well as purported management services organization (MSO) payments to physicians, which were disguised as investment returns but actually were offered to induce the provider to order RDx laboratory tests. To date the government has recovered over $53 million relating to conduct involving MSO kickbacks to healthcare providers, including False Claims Act settlements with 48 physicians.
Innovasis and two senior executives agreed to pay $12 million to resolve allegations that they paid kickbacks to spine surgeons in the form of consulting fees, intellectual property acquisition and licensing fees, registry payments, performance shares in Innovasis, travel to a luxury ski resort, and lavish dinners and holiday parties to induce use of the company’s spinal implants, devices, and other equipment in medical procedures performed on Medicare beneficiaries.
The Justice Department filed claims against Murphy Medical Center, Inc., doing business as Erlanger Western Carolina Hospital, and Chattanooga-Hamilton County Hospital Authority doing business as Erlanger Health System and Erlanger Medical Center (collectively, Erlanger), alleging that Erlanger knowingly submitted claims to Medicare for services that were referred in violation of the Stark Law. The complaint alleged that Erlanger paid its physicians compensation that was well above fair market value and that Erlanger knew that the claims for services referred by those physicians were not eligible for payment.
The Justice Department also filed claims against Rick Nassenstein, formerly the president, chief financial officer, and co-owner of Cardiac Imaging Inc., a provider of mobile cardiac positron emission tomography (PET) scans. The complaint alleges that Nassenstein played a central role in a scheme whereby CII paid above-fair market value fees to doctors who referred patients to CII for cardiac PET scans, which was the subject of a $85 million settlement with Cardiac Imaging and its founder last year.
Other Health Care Fraud
Rite Aid Corporation (Rite Aid) and Rite Aid subsidiaries, Elixir Insurance Company, RX Options LLC, and RX Solutions LLC (Elixir), which offered Medicare drug plans and pharmacy benefit manager (PBM) services, agreed to pay $101 million and to grant the United States an additional, allowed, unsubordinated, general unsecured claim of $20 million in Rite Aid’s bankruptcy to resolve allegations that they failed to accurately report drug rebates to the Medicare Program. The United States alleged that these Rite Aid entities improperly reported portions of rebates they received from manufacturers as bona fide service fees, even though manufacturers did not negotiate with the defendants to pay such fees.
Walgreens Boots Alliance Inc. and Walgreen Co. (together, Walgreens) agreed to pay $106.8 million to resolve allegations that they billed government health care programs for prescriptions that were processed but never picked up by beneficiaries.
Columbus LTACH, doing business as Silver Lake Hospital, and certain of its investors, agreed to pay over $30 million to resolve allegations that Silver Lake claimed excessive Medicare cost outlier payments, a form of supplemental reimbursement to hospitals in cases where the cost of care is unusually high. The settlement also resolved allegations under the Federal Debt Collection Procedures Act that Silver Lake transferred millions of dollars of the hospital’s money to its investors without receiving equivalent value in return, at a time when the hospital had reason to believe that it would not be able to repay its debts to the Medicare program.
Gentiva, successor to Kindred at Home, paid $19.4 million to resolve allegations that Kindred at Home and related entities submitted claims and retained overpayments for hospice services provided to patients who were ineligible to receive hospice benefits.
The Justice Department filed claims against Regeneron Pharmaceuticals Inc., alleging that the company fraudulently inflated Medicare reimbursement rates for Eylea, a medication used to treat neovascular Age-Related Macular Degeneration. The complaint alleges that Regeneron knowingly submitted false average sales price reports, on which Medicare reimbursements are set, to the government that did not take into account certain price concessions.
The Justice Department also filed claims against six health plans (Brighton Marine Health Center, CHRISTUS Health Services, Johns Hopkins Medical Services Corporation, Martin’s Point Health Care, Pacific Medical Center, and St. Vincent’s Catholic Medical Centers of New York) participating in the Uniformed Services Family Health Plan program, as well as their trade group, alleging they knowingly retained inflated payments for healthcare services provided to retired military members and their families. The United States further alleged that after learning of the calculation errors, the plans took steps to conceal the overpayments from the government and continued to submit invoices at the inflated payment rates. The government resolved related claims against Kennell and Associates, an actuarial firm, for $779,951 plus contingent payments, based on its inability to pay.
MILITARY PROCUREMENT FRAUD
The government continued its pursuit of fraud matters involving the purchase of goods and services by the military services. Fraud in these programs not only squanders government funds, but also can deprive servicemembers of critical resources and potentially put them at risk.
Sikorsky Support Services Inc and Derco Aerospace Inc. paid $70 million to resolve allegations they overcharged the U.S. Navy for spare parts and materials needed to repair and maintain the primary aircraft used to train naval aviators. The United States alleged that these entities, which were owned by the same parent company, entered into an improper subcontract that resulted in the Navy paying inflated costs for parts.
Austal USA LLC paid $811,259 to resolve allegations that it knowingly supplied valves that did not meet military specifications. The United States alleged that under a U.S. Navy contract Austal invoiced for military grade valves to be installed on certain combat ships when Austal knew the valves had not met the testing requirements to be deemed military grade.
The Department brought claims against Insect Shield LLC and the Estate of Richard Lane, the founder, majority owner and chief operating officer of the company, for allegedly causing the submission of false claims to the Department of Defense under contracts to provide Army Combat Uniforms. The United States alleges that Insect Shield and Lane falsified the results of the insect repellant testing to conceal failing test results, including by inappropriately combining results from different rounds of testing, re-labeling test samples to hide the true origin of the samples, and performing re-tests of uniforms in excess of what the contract permitted.
PANDEMIC FRAUD
In response to the COVID-19 crisis, Congress authorized historic levels of emergency funding for federal agencies to provide direct financial assistance to individuals, businesses, and state, local, and Tribal governments. The Justice Department’s efforts in this area have included the pursuit of cases involving improper payments under the Paycheck Protection Program (PPP), administered by the Small Business Administration (SBA), and alleged fraud affecting Medicare and other federal healthcare programs for services related to COVID-19 testing and treatment. During fiscal year 2024, the Department obtained more than 250 False Claims Act settlements and judgments, which collectively exceeded more than $250 million, resolving allegations of pandemic-related fraud.
Now-bankrupt financial technology company Kabbage Inc., doing business as KServicing, agreed to resolve allegations that it submitted, and caused the submission of, thousands of false claims for PPP loan forgiveness, loan guarantees, and processing fees to the SBA. The United States alleged that Kabbage systemically inflated PPP loans, causing the SBA to guarantee and forgive loans in amounts that exceeded what borrowers were eligible to receive, and that Kabbage failed to implement appropriate fraud controls. As part of the resolution, the United States will receive an allowed, unsubordinated, general unsecured claim in the bankruptcy proceeding of up to $120 million.
West Coast Dental Administrative Services LLC (formerly West Coast Dental Services Inc.) and its founders and former owners Drs. Soleyman Cohen-Sedgh, Farid Pakravan and Farhad Manavi paid $6.3 million to resolve allegations that the company and affiliated dental offices received seven improper second-draw PPP loans, which were limited to businesses with 300 employees or less. The United States alleged the companies falsely certified that they qualified for these loans.
Hemisphere GNSS (USA) Inc., which was purchased by CNH Industrial in 2023, paid $2.6 million to resolve allegations that it provided false information with a PPP loan and forgiveness of that loan. To obtain the loan, the company certified that no entity created in or organized under the laws of the People’s Republic of China owned or held 20% or more of an economic interest in the company, and that it did not have a board member who was a resident of the People’s Republic of China. The United States alleged that at the time the company applied for the loan, both of those certifications were false.
Andrew Maloney and the clinical laboratory that he owned, Capstone Diagnostics, paid $14.3 million to resolve allegations that, among other things, they sought to profit from the COVID-19 pandemic by paying volume-based commissions to independent contractor sales representatives to recommend respiratory pathogen panel tests to senior communities interested only in COVID-19 tests and to generate orders using forged signatures of physicians that did not reflect the medical conditions of the senior community residents receiving the tests. In a similar matter, the government obtained a $26.3 million default judgment against Provista Health LLC and its owner Patrick Britton-Harr for billing during the height of the pandemic for medically unnecessary respiratory pathogen panel tests and tests that were not performed.
City Medical of the Upper East Side, PLLC, Summit Medical Group, P.A., Summit Health Management, LLC, and Village Practice Management Company LLC, which collectively do business as CityMD, agreed to pay $12 million to resolve allegations for false claims for COVID-19 testing to a Health Resources and Services Administration (HRSA) program for uninsured patients arising from CityMD’s failure to adequately confirm that the individuals had health insurance coverage before submitting their claims to the Uninsured Program.
CYBERSECURITY INITIATIVE
The Department’s effort to combat cybersecurity threats includes its Civil Cyber-Fraud Initiative. The Initiative is dedicated to using the False Claims Act to promote cybersecurity compliance by government contractors and grantees by holding them accountable when they knowingly violate applicable cybersecurity requirements.
The Justice Department filed claims against Georgia Institute of Technology and Georgia Tech Research Corp. alleging that those defendants failed to meet cybersecurity requirements in connection with Department of Defense (DoD) contracts. The complaint alleges that a research lab at Georgia Tech failed to develop and implement a system security plan, as required by DoD cybersecurity regulations, and submitted a false cybersecurity assessment score to DoD for the Georgia Tech campus. The complaint also alleges that the lab failed to install, update or run anti-virus or anti-malware tools on desktops, laptops, servers and networks at the lab.
Guidehouse Inc. paid $7.6 million and Nan McKay agreed to pay $3.7 million to resolve allegations they failed to meet cybersecurity requirements in a contract with New York funded by a federal grant intended to secure online environments for New York residents to apply for federal rental assistance during the Covid-19 pandemic. Guidehouse and McKay admitted that neither satisfied their obligation to complete the required testing of the online site used to house applicants’ information, and the site was shut down within twelve hours after certain applicants’ personally identifiable information had been compromised.
Insight Global LLC paid $2.7 million to resolve allegations it failed to implement adequate cybersecurity measures to protect health information obtained during Covid-19 contact tracing. The United States alleged that the Pennsylvania Department of Health hired the company to provide staffing for Covid-19 contact tracing using funds from the U.S. Centers for Disease Control and Prevention and that the company failed to keep the health information confidential and secure.
OTHER FRAUD RECOVERIES
The judgments, settlements, and lawsuits announced during fiscal year 2024 involved a variety of other programs and schemes that reflect the range of the government’s False Claims Act enforcement efforts.
Gen Digital Inc. (formerly known as Symantec Corp.) paid $55.1 million to satisfy a judgment that it made knowingly false claims to the United States when it misrepresented its commercial sales practices during the negotiation and subsequent performance of a General Services Administration (GSA) contract. The court found after a four-week bench trial that the false disclosures induced GSA to accept and then continue to pay higher prices than it would have had it known of Symantec’s actual commercial pricing practices. The court also found that Symantec continuously violated the Price Reduction Clause, a standard term in these types of contracts that requires the contractor throughout performance of the contract to maintain GSA’s price position in relation to an identified customer or category of customer agreed upon in contract negotiations.
The City of Los Angeles paid $38.2 million to resolve allegations that it failed to meet federal accessibility requirements when it sought and used Department of Housing and Urban Development (HUD) grant funds for multifamily affordable housing. The United States alleged that the city failed to make its affordable multifamily housing program accessible to people with disabilities. The United States further alleged that the city failed to maintain a publicly available list of accessible units and their accessibility features and the city, on an annual basis, falsely certified to HUD that it complied with related grant requirements.
Hilcorp San Juan L.P. paid $34.6 million to resolve allegations that it underpaid royalties owed on oil and natural gas produced from federal lands. The United States alleged that the company made payments to the federal government based on estimated volumes and prices without indicating that the payments were based on estimates and without subsequently adjusting its payments in the following months to account for actual volumes and values, resulting in the underpayment of royalties to the United States. In another case based on allegations of the underpayment of royalties owed on natural gas, XTO Energy Inc. paid $16 million to resolve allegations that the company improperly deducted costs necessary to put the gas in marketable condition, improperly deducted costs of transporting carbon dioxide, and failed to pay royalties on carbon dioxide.
Hahn Air Lines GmbH and Hahn Air USA Inc. paid $26.8 million to resolve allegations that Hahn Air failed to remit to the United States certain travel fees collected from commercial airline passengers flying into or within the United States.
Consolidated Nuclear Security LLC paid $18.4 million to resolve allegations that it billed for time not worked at the National Nuclear Security Administration’s Pantex Site near Amarillo, Texas.
AECOM paid $11.8 million to resolve allegations that it submitted false claims to the Federal Emergency Management Agency for the replacement of certain educational facilities located in Louisiana that were damaged by Hurricane Katrina. The United States alleged that AECOM submitted to FEMA fraudulent requests for disaster assistance funds and did not correct applications that included materially false design, damage and replacement eligibility descriptions. Combined with settlements with other entities involved in the alleged conduct, the government recovered over $25 million in connection with the disaster assistance applications prepared by AECOM.
RECOVERIES IN WHISTLEBLOWER SUITS
Of the $2.9 billion in settlements and judgments reported by the government in fiscal year 2024, over $2.4 billion arose from lawsuits that were filed under the qui tam provisions of the False Claims Act and pursued by either the government or whistleblowers. During the same period, the relator shares for the individuals who exposed fraud and false claims by filing qui tam actions exceeded $400 million.
The number of lawsuits filed under the qui tam provisions of the act has grown significantly since 1986, with an average of more than 18 new cases filed every week during this past year.
“Whistleblowers play a critical role in identifying fraud schemes,” said Principal Deputy Assistant Attorney General Boynton. “We continue to be grateful for their efforts and often substantial sacrifices to uncover and report these schemes.”
In 1986, Senator Charles Grassley and Representative Howard Berman led the successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud. In 2009 and 2010, further improvements were made to the False Claims Act and its whistleblower provisions.
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On behalf of the Civil Division, Principal Deputy Assistant Attorney General Boynton expressed appreciation for the many public servants over the past year who supported the Department’s enforcement efforts. “The accomplishments announced today are a result of the tireless efforts of civil servants who work to protect taxpayer dollars and the important programs that they support,” said Principal Deputy Assistant Attorney General Boynton. “These individuals serve at offices across the country, including the Fraud Section of the Civil Division, the U.S. Attorneys’ Offices, the agency Offices of Inspector General and Offices of General Counsel, and many other federal and state agencies that contribute to this important work.”
Except where indicated, the government’s claims in the matters described above are allegations only and there has been no determination of liability. The numbers contained in this press release may differ slightly from the original press releases due to accrued interest.
View the statistics sheet here.