District Not Recorded

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, Special Agent in Charge George Piro for the FBI’s Miami Field Office and the members of the South Florida Joint Terrorism Task Force announced that a West Palm Beach resident pleaded guilty to willful retention of classified national defense information pursuant to the Espionage Act, one count of computer intrusion pursuant to the Computer Fraud and Abuse Act, and one count of conspiracy to commit naturalization fraud, while employed as a computer systems administrator at a U.S. Military installation in Honduras.

Christopher R. Glenn, 34, gained unauthorized access to classified computer files containing national defense information that belonged to the Department of Defense and U.S. Southern Command’s Joint Task Force Bravo in Soto Cano Air Base, Honduras.  Once Glenn accessed those files, he copied classified information stored under the Joint Task Force Commander’s account, which information he retained. 

Glenn also conspired with his wife, Khadraa A. Glenn, 28, to commit naturalization fraud for her benefit by fabricating fraudulent documents and submitting false statements and the documents to the U.S. Citizenship and Immigration Services (USCIS).  Khadraa A. Glenn previously pleaded guilty to naturalization fraud conspiracy and was sentenced on Oct. 7, 2014.

“Christopher Glenn accessed, copied and retained classified information that belonged to the Department of Defense and the U.S. Southern Command’s Joint Task Force, without authorization,” said Assistant Attorney General Carlin.  “Systems administrators occupy a place of unique trust in an organization due to their extensive access to the cyber systems they maintain.  With today’s plea, Mr. Glenn is being held accountable for his violation of that trust.”

“Obtaining national defense information when you are not entitled to it is a serious threat to our national security,” said U.S. Attorney Ferrer.  “In committing this crime, Christopher Glenn abused his position of trust.  Violations of the espionage act and computer intrusion are unacceptable and we will continue to investigate and seek to hold accountable those who engage in it.”

“The Cold War may be over, but espionage, spies trying to steal our nation’s most valuable secrets are still at it,” said Special Agent in Charge Piro.  “More than ever, the FBI remains vigilant to protect critical national secrets and assets.  If you are aware of this type of activity, report it immediately to the FBI.”

Glenn is scheduled to be sentenced by U.S. District Judge Kenneth A. Marra, on April 17, 2015.

Assistant Attorney General Carlin would like to thank the investigative efforts of the FBI, U.S. Army’s 470th Military Intelligence Brigade, U.S. Army’s Criminal Investigations Division, the U.S. Southern Command (SOUTHCOM), USCIS, Internal Revenue Service, Department of Homeland Security and the South Florida Joint Terrorism Task Force.  The case is being prosecuted by Trial Attorney Christian Ford of the Counterespionage Section of the Department of Justice’s National Security Division and Assistant U.S. Attorney Ricardo Del Toro of the Southern District of Florida.

A Northville, Michigan, resident was sentenced today in U.S. District Court for the Eastern District of Michigan to serve 15 months in prison, five years of supervised released and was ordered to pay $394,000 in restitution to five defrauded banks for committing bank fraud, the Department of Justice announced. 

Wasseem Shamoun pleaded guilty on Aug. 12, 2014, to conspiracy to commit bank fraud.  The superseding indictment alleged that from approximately January 2006 to December 2008, Shamoun and his six other co-defendants conspired to defraud financial lending institutions to obtain residential mortgage loans by providing fraudulent information on loan applications.  According to court documents, the defendants devised a scheme to purchase single-family homes for approximately $5,000 to $40,000 each, and then recruited straw buyers to submit fraudulent loan applications for home mortgages substantially above the original purchase price.  The loan applications falsified the straw buyers’ assets, income and down payment, among other things.  The straw buyers were paid fees for their participation, which were sometimes falsely disguised as “landscaping” or “construction” fees.  The conspirators made a substantial profit and paid themselves commissions on the sales.  Every home purchased and sold as part of the scheme went into foreclosure.  According to court documents, Shamoun’s role in the conspiracy was to sell properties to the straw buyers.  He was directly responsible for a criminal loss of approximately $394,000. 

In addition to the seven individuals indicted in the case, two others connected to the scheme have pleaded guilty.  One individual is a straw buyer of multiple properties who received substantial fees as part of the scheme.  The other individual is a mortgage broker who assisted in the preparation of the false mortgage loan applications.  Both are awaiting sentencing in their cases.

This case was investigated by the FBI, IRS-Criminal Investigation and the Drug Enforcement Administration.  Senior Litigation Counsel Corey Smith and Trial Attorney Mark S. McDonald of the Justice Department’s Tax Division prosecuted the case.

A Plymouth, Michigan, resident was sentenced today in the U.S. District Court for the Eastern District of Michigan to serve 42 months in prison to be followed by one year of supervised release for committing wire fraud and tax evasion, the Justice Department and the Internal Revenue Service (IRS) announced. 

According to court documents, Michael Stover was the president of Omni Facility Services (Omni), a janitorial company located in Southfield, Michigan.  As part of his responsibilities as president, Stover approved and paid subcontractors of Omni.  Stover incorporated a fictitious subcontractor called Envirovac Inc., and from 2004 through 2010, he created fictitious invoices from Envirovac that billed Omni for work that was never performed.  Stover then approved payment of those invoices on Omni’s behalf.  The payments to Envirovac actually went to Stover.  Over the course of this scheme, Stover embezzled approximately $2.178 million from Omni.  On his federal income tax return for 2007, Stover failed to report the income that he had embezzled from Omni. 

The case was investigated by special agents of IRS-Criminal Investigation.  Trial Attorneys Yael T. Epstein and Kenneth C. Vert of the Tax Division prosecuted the case.        

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

A federal court in Las Vegas has permanently barred a husband and wife from preparing federal tax returns for others and from providing any advice related to federal taxes, the Justice Department announced today. 

Judge Richard F. Boulware II entered the injunction order after sanctioning Wayne Reeves and Diane Vaoga for willfully refusing to comply with previous court orders directing them to participate in discovery.  The court had warned Reeves and Vaoga that sanctions, including entry of the injunction against them, might be imposed for failure to comply with court orders.

In its injunction order, the court found that Reeves orchestrated and promoted, and that Vaoga assisted in, an illegal tax scheme.  According to the order, Reeves advised clients to set up sham trusts and have their wages directed into accounts for those trusts as a way to improperly reduce their tax liability.  Reeves also instructed clients to name him, Vaoga or another trusted third party as a signatory on their trust accounts.  Both Reeves and Vaoga acted as trustees and sent clients pre-signed blank checks to allow them access to their money, collecting fees in the process.  Reeves and Vaoga advised clients that there were numerous tax benefits associated with these trusts, including that the income from the trusts was nontaxable and did not need to be reported on tax returns; that clients could deduct personal expenses and count them as business expenses of the trusts; that clients worked for the trusts and thus were paid in tax-deductible management fees; that clients no longer needed to file federal tax returns; and that there were no problems with the Internal Revenue Service (IRS) in making these financial arrangements.  The court found that Reeves engaged in this conduct knowing that such actions would improperly result in the understatement of his customers’ tax liability.

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2014.  The IRS has some tips on their website for choosing a tax preparer.  In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department website.  An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page.  If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.      

A historic settlement reached with Anadarko Petroleum Corp. and Kerr McGee has gone into effect, allowing funds to be disbursed for cleanups across the country, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Preet Bharara of the Southern District of New York, and Assistant Administrator Cynthia Giles of the U.S. Environmental Protection Agency (EPA).  

This settlement resolves fraudulent conveyance claims brought by the United States and the Anadarko Litigation Trust, the trust against Anadarko Petroleum Corporation and its affiliates, the defendants, in the bankruptcy of Tronox Inc. and its subsidiaries.  Today, pursuant to the settlement agreement, the defendants paid $5.15 billion, plus interest, to the trust.  The trust is expected to distribute more than $4.4 billion to fund environmental clean-up and for environmental claims.  The settlement constitutes the largest payment for the clean-up of environmental contamination ever obtained in a lawsuit brought by the Department of Justice.

 “This recovery will lead to cleanups across the country that will undo lasting damage to the environment, including contamination of tribal lands, by Kerr-McGee’s businesses,” said Assistant Attorney General Cruden.  “This result emphatically demonstrates the Justice Department’s commitment to environmental justice for all Americans, and it fulfills the department’s promise to hold accountable those who pollute and those who try to foist their responsibility for cleanup on the American taxpayer.”

“The Kerr-McGee Corporation spent decades despoiling our nation’s natural resources, leaving a toxic legacy for communities across the nation, from Sidney, New York, to the Navajo nation,” said U.S. Attorney Bharara.  “Then, Kerr-McGee tried to escape the consequences of its misdeeds by transferring its most valuable assets to affiliates, leaving an insolvent shell behind, unable to pay its environmental liabilities.  As today’s historic payment shows, the government will not allow polluters to escape paying for the damage they inflict on our land, water and people, and we will hold accountable those who attempt to shield themselves from responsibility behind improper corporate transactions.”

“If you pollute the environment, you should be responsible for cleaning it up,” said EPA Assistant Administrator Giles.  “From the Navajo Nation to low income neighborhoods across America, more than $4.4 billion will be put to work cleaning up toxic pollution.  This historical environmental cleanup will have a lasting impact on American communities.”

As noted by U.S. District Judge Katherine B. Forrest, in approving the settlement in November, this case arises from a “series of transactions by the Kerr-McGee Corp. that resulted in the spin-off of Tronox, which Kerr-McGee left saddled with the massive environmental and tort liabilities it had accumulated over the course of decades of operating in the chemical, mining, and oil and gas industries, but without sufficient assets with which to address these liabilities.”  For this reason, as the district court explained, both the United States and the Tronox estate, now represented by the trust, brought fraudulent conveyance claims against the defendants.

On April 3, 2014, the United States announced this settlement resolving the claims against the defendants, which was then subject to a period of public comment and judicial approval.  After receiving and considering comments from the public, the United States sought approval of the settlement agreement, and on Nov. 10, 2014, the district court approved the settlement as “fair and reasonable.”  The deadline for any appeals from the district court’s decision passed on Jan. 20, 2015, without any appeals having been taken and therefore the settlement agreement went into effect on Jan. 21, 2015.

Today, under the settlement agreement, the defendants paid $5.15 billion, plus interest from Apr. 3, 2014, to the trust.  Pursuant to the terms of prior agreements in the Tronox bankruptcy, the government estimates that more than $4.4 billion of this recovery will be paid to the United States, state governments, the Navajo nation and four environmental response trusts created in the bankruptcy to clean up contaminated property.  An estimated more than $600 million will be paid to a trust created to pay tort victims.

This case was handled by the Environmental Protection Unit and the Tax and Bankruptcy Unit of the Office’s Civil Division.  Assistant U.S. Attorney Robert William Yalen is in charge of the case, which he handled along with Assistant U.S. Attorney Joseph Pantoja and Alan S. Tenenbaum, Katherine Kane, Frederick S. Phillips, Marcello Mollo, and Erica Pencak of the Department of Justice’s Environment and Natural Resources Division. 

The Department of Justice and the Federal Trade Commission (FTC) will host a joint public workshop, Examining Health Care Competition, on Feb. 24 and 25, 2015, in the Constitution Center Auditorium located at 400 7th Street, S.W., Washington, D.C., 20024.

The workshop will study recent developments related to health care provider organization and payment models, with an emphasis on how they may affect competition in the provision of health care services.  Specific discussion topics may include early observations regarding accountable care organizations; alternatives to traditional fee-for-service payment models; trends in provider consolidation; trends in provider network and benefit design strategies, as well as contracting practices and regulatory activity that may enhance or undermine these strategies; and early observations regarding health insurance exchanges.

The workshop will be webcast live on the FTC’s website.  Registration information, an agenda, directions to the FTC Conference Center and a list of speakers will be available on the event web page.  Advance registration is not required, but is strongly encouraged.

Public comments should be submitted by Feb. 16, 2015, to be considered for the workshop.  Interested persons can continue to submit comments through April 30, 2015.  Suggested comment topics, and instructions on how to submit comments online and by mail, can be found in the Federal Register notice.

Reasonable accommodations for people with disabilities who wish to attend the workshop in person are available upon request.  Requests should be submitted via email to [email protected] or by calling Lara Kittelson at 202-326-3388.  Requests should be made in advance.  Please include a detailed description of the accommodation needed and provide contact information.                                                                                                                       

Press contacts:

Department of Justice
Office of Public Affairs
Emily Pierce
202-514-2007

Federal Trade Commission
Office of Public Affairs
Betsy Lordan
202-326-3707

Staff contacts:

Department of Justice
Antitrust Division, Office of Legal Policy
Patrick M. Kuhlmann
202-305-4639

Federal Trade Commission
Office of Policy Planning
Stephanie A. Wilkinson
202-326-2084

 

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney John Walsh of the District of Colorado and Special Agent in Charge Thomas Ravenelle of the FBI’s Denver Division announced that Shannon Conley, 19, of Arvada, Colorado, was sentenced today by U.S. District Court Judge Raymond P. Moore to serve 48 months in federal prison, followed by 3 years on supervised release with 100 hours of community service, for conspiracy to provide material support to a designated foreign terrorist organization.  Conley, who appeared at the hearing in custody, was remanded at its conclusion. 

Conley was first charged by criminal complaint on April 9, 2014.  She was indicted by a federal grand jury in Denver on Sept. 10, 2014.

According to court documents, including the stipulated facts in the plea agreement, from about February 2014 and continuing through April 8, 2014, Conley and a co-conspirator unlawfully worked together and with other individuals to provide and attempt to provide material support and resources to a designated foreign terrorist organization, specifically Al-Qaeda (AQ) and Al-Qaeda in Iraq (AQI), aka the Islamic State of Iraq (ISI), aka the Islamic State of Iraq and Al Sham (ISIS), aka the Islamic State of Iraq and the Levant (ISIL).

The conspiracy was accomplished, in part, when Conley met the co-conspirator on the Internet.  During their communications, they shared their view of Islam as requiring participation in violent jihad.  The co-conspirator communicated to Conley that he was an active member of a group fighting in Syria known as ISIS.  The two then decided to become engaged and worked together to have Conley travel to Syria to join her new fiancé.  Before traveling to Syria, Conley refined and obtained additional training and skills in order to provide support and assistance to any AQ and/or ISIS fighter.  Conley also intended to fight if it became necessary to do so.

In furtherance of the conspiracy, Conley joined the U.S. Army Explorers (USAE) to be trained in U.S. military tactics and in firearms.  She traveled to Texas and attended the USAE training.  She also obtained first aid/nursing certification and National Rifle Association certification.  Conley knew that ISIS was a designated foreign terrorist organization.  In fact, on numerous occasions, Special Agents with the FBI met with her in attempts to persuade her not to carry out her plans to travel overseas to provide support to a foreign terrorist organization and to engage in violent jihad.  On March 29, 2014, the co-conspirator, together with others, arranged for an airline ticket to be purchased for Conley to travel to Turkey, departing from Denver on April 8, 2014.  On April 8, 2014, Conley traveled to Denver International Airport and attempted to board the flight to Turkey.  She was then arrested by FBI agents.

A subsequent search of Conley’s home revealed DVDs of Anwar Al-Awlaki lectures and a number of books and articles about AQ, other terrorist groups and jihad.  Agents also recovered shooting targets labeled with the number of rounds fired and distances.

“Conspiring to providing material support to a foreign terrorist organization is a serious federal crime,” said U.S. Attorney John Walsh.  “The defendant in this case got lucky.  The FBI arrested her after determining that she had been radicalized and planned to travel to Syria to support the brutal foreign terrorist organizations operating there.  Had she succeeded in her plan to get to Syria, she would likely have been brutalized, killed or sent back to the United States to commit other crimes.  Today’s sentence underscores the seriousness of defendant’s conduct, but pales in comparison to the penalty she would have paid had she not been stopped.”

“This sentencing highlights the rapidly changing, shrinking nature of the world and the implications for law enforcement and public safety,” said Special Agent in Charge Thomas Ravenelle.  “Terrorist groups now have the ability to directly attract and even recruit U.S. residents to commit violence or provide other support on their behalf.  Anyone in our community who takes deliberate steps to commit federal crimes in support of a declared terrorist organization will have those steps disrupted and will be arrested and prosecuted whenever appropriate and necessary in order to preserve the safety of our community.”

This case was investigated by the FBI and the Arvada Police Department.

The defendant was prosecuted by Assistant U.S. Attorney Greg Holloway of the District of Colorado, with the assistance of Jennifer Levy of the National Security Division’s Counterterrorism Section.

Defendant Allegedly Aided Suicide Bomb Attack on U.S. Base in Iraq

U.S. Attorney Loretta E. Lynch for the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director-in-Charge George Venizelos of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department announced that tomorrow, Jan. 24, 2015, Faruq Khalil Muhammed ‘Isa, aka “Faruq Khalil Muhammad ‘Isa,” “Sayfildin Tahir Sharif,” and “Tahir Sharif Sayfildin,” will have his initial appearance at the federal courthouse in Brooklyn, New York, on charges of conspiring to kill Americans abroad; and providing material support to a terrorist conspiracy to kill Americans abroad.  ‘Isa was extradited to the United States from Canada. 

According to court documents, the defendant is charged in connection with his support for a multinational terrorist network that conducted multiple suicide bombings in Iraq.  According to the complaint, filed on Jan. 14, 2011, in the Eastern District of New York, the defendant assisted in orchestrating an attack on the United States Military’s Forward Operating Base Marez (FOB Marez) in Mosul, Iraq, on April 10, 2009.  A truck laden with explosives drove to the gate of FOB Marez and exchanged fire with Iraqi police officers guarding the base and then with an American convoy exiting the base.  The truck detonated alongside the last vehicle in the U.S. convoy, leaving a 60-foot crater in the ground.  Five American soldiers were killed in the blast.  They are:  Staff Sergeant Gary L. Woods, 24, of Lebanon Junction, Kentucky; Sergeant First Class Bryan E. Hall, 32, of Elk Grove, California; Sergeant Edward W. Forrest Jr., 25, of St. Louis, Missouri; Corporal Jason G. Pautsch, 20, of Davenport, Iowa; and Army Private First Class Bryce E. Gaultier, 22, from Cyprus, California. 

“Today’s extradition demonstrates to those who orchestrate violence against our citizens and our soldiers that there is no corner of the globe from which they can hide from the long reach of the law,” said U.S. Attorney Lynch.  “We will continue to use every available means to bring to justice those who are responsible for the deaths of American servicemen and women who paid the ultimate price in their defense of this nation.” 

“Faruq Khalil Muhammed ‘Isa is alleged to have helped orchestrate an attack that killed five U.S.  soldiers at the Forward Operating Base Marez in Mosul, Iraq, in 2009,” said Assistant Attorney General Carlin.  “The families of these five Americans and all who have lost loved-ones to acts of terrorism should know that we will never cease seeking to hold terrorists accountable for their acts.  I want to thank the many agents, analysts and prosecutors who are responsible for this matter.”

“As alleged, Faruq Khalil Muhammad ‘Isa was involved in the most callous act: a suicide bombing murdering U.S. soldiers in Iraq,” said Assistant Director in Charge Venizelos.  “Our memory is long, and our reach is longer.  Today we hope to bring some measure of justice to the families of those five servicemen who sacrificed their lives in defense of this nation.”

“I want to commend the United States Attorney Loretta Lynch and her team for working closely with the NYPD and the FBI to extradite this individual who is allegedly responsible for the death of soldiers sworn to protect and serve,” said Commissioner Bratton.  “We hope today’s extradition will bring some closure to the families.”

The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

The government’s case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad, Alexander Solomon and Peter Baldwin, with assistance provided by the Justice Department’s Counterterrorism Section and Office of International Affairs.  The department extends its grateful appreciation to the Canadian government for its assistance and cooperation in the extradition.

Faruq Complaint 

Faruq Indictment 

Defendant Admits To Targeting Parents Of Hospitalized Children, Among Others

A Maryland woman pleaded guilty today in connection with her involvement in a sophisticated identity theft ring that stole the identities of over 600 individuals in Washington, D.C., and surrounding areas with an estimated loss of well over $1 million.  Fifteen members of the fraud ring—which targeted, among others, the parents of sick and injured kids receiving treatment at a children’s hospital in Washington, D.C.—have been convicted so far as a result of this investigation.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Special Agent in Charge Kathy A. Michalko of the U.S. Secret Service’s Washington Field Office made the announcement after the guilty plea was accepted by U.S. District Judge Claude M. Hilton of the Eastern District of Virginia.

“Identity theft wreaks havoc on the lives of American citizens every year,” said Assistant Attorney General Caldwell.  “But this group took the distress to a new level by targeting the parents of hospitalized children and stealing their identities, as well as those of other customers and members of businesses in the Washington, D.C., area.  Along with our law enforcement partners, the Criminal Division is committed to protecting the privacy and financial security of the American people from both foreign and domestic thieves.”

Leah Shanae Elliott, 22, of Clinton, Maryland, pleaded guilty to one count of conspiracy to commit bank fraud, access device fraud and identity theft.  A sentencing hearing is scheduled for April 24, 2015, before Judge Hilton.   

In a statement of facts filed with her plea agreement, Elliott admitted that she was a member of a large-scale identity theft ring that operated in the Washington, D.C., metropolitan area and elsewhere.  According to Elliott, members of the ring used their employment at local businesses and nonprofits—including banks, credit unions, medical and dental centers, employee associations, restaurants and stores—to access and steal personally identifiable information (PII) such as social security numbers, addresses, and dates of birth, as well as debit and credit card information.  The conspirators then used this stolen information to manufacture fraudulent driver’s licenses and other identifications, as well as fraudulent debit and credit cards.  Conspirators used the fake identifications and debit or credit cards to establish lines of credit, purchase merchandise at retail establishments, make unauthorized withdrawals from victims’ bank accounts and manufacture and cash counterfeit checks. 

Elliott specifically admitted that that she stole PII and debit and credit card information at the restaurant at which she worked, and used stolen PII and fraudulent driver’s licenses to open lines of credit and obtain rental vehicles, computers, televisions, cameras, watches, jewelry and other items under victims’ names.  She also admitted that she retrieved “skimming” devices loaded with stolen PII and debit and credit card information from other members of the conspiracy and used those devices to transfer the stolen information into fake identifications and debit and credit cards. 

Further, Elliott admitted that she solicited her mother—a credit and collections representative at a children’s hospital in Washington, D.C.—to steal the identities of parents of sick or injured children, and that after a further request from one of the ring’s leaders, her mother ultimately provided 78 stolen “profiles” from the hospital. 

Members of the fraud ring previously convicted include:

• Erin Lyles-Armstrong, 34, of Germantown, Maryland, who pleaded guilty to one count of aggravated identity theft on Feb. 1, 2012;

• Justin Gatling, 28, of Silver Spring, Maryland, who pleaded guilty to one count of exceeding authorized access to information stored in a computerized financial record of a financial institution on March 29, 2012;

• Segale Battle, 30, of Capitol Heights, Maryland, who pleaded guilty to identity theft on Sept. 15, 2013;

• Rungnatee Pearson, 45, of Bronx, New York, who pleaded guilty to one count of access device fraud on Sept. 18, 2013;

• Jamille Ferguson, 31, of Dumfries, Virginia, who pleaded guilty to one count of access device fraud and one count of aggravated identity theft on Oct. 8, 2013;

• Christopher Bush, 30, of New York, New York, who pleaded guilty to one count of bank fraud, one count of access device fraud and one count of aggravated identity theft on Oct. 11, 2013;

• Jenaro Blalock, 31, of Clinton, Maryland, who pleaded guilty to one count of access device fraud and one count of aggravated identity theft on Oct. 29, 2013;

• Kevin Middleton, 32, of McClellanville, South Carolina, who pleaded guilty to one count of access device fraud on Dec. 16, 2013;

• Adrienne Pritchett, 42, of District Heights, Maryland, who pleaded guilty to one count of bank fraud and one count of aggravated identity theft on Oct. 3, 2013;

• Tekia Thomas, 22, of Alexandria, Virginia, who pleaded guilty to one count of access device fraud on Oct. 8, 2013;

• Elizabeth Monika Hunter, 20, of Fredericksburg, Virginia, who pleaded guilty to one account of access device fraud on Jan. 28, 2014;

• LaShawn Powell, 35, of Upper Marlboro, Maryland, who pleaded guilty to one count of making false statements on April 15, 2014;

• Detrius Elliott, 43, of Clinton, Maryland, who pleaded guilty to one count of identity theft on May 29, 2014; and

• Chantel Thompson, 22, of Washington, D.C., who pleaded guilty to one count of conspiracy to commit bank fraud, access device fraud, and identity theft on Jan. 9, 2015.

Most of the defendants have already been sentenced.  Last year Judge Hilton sentenced Blalock and Bush, two of the leaders of the ring, to 12 years in prison and 10 years in prison, respectively.  Blalock was also ordered to pay $614,685.58 in restitution.

The U.S. Secret Service led this investigation, with significant assistance from the U.S. Postal Inspection Service, U.S. Department of Agriculture’s Office of Inspector General, U.S. Office of Personnel Management’s Office of Inspector General, Montgomery County Police Department, Fairfax County Police Department, City of Fairfax Police Department, D.C. Metropolitan Police Department, Metropolitan Washington Airports Authority, Prince George’s County Police Department’s Washington Area Vehicle Enforcement Unit and others.  The cases are being prosecuted by Senior Counsels Matthew A. Lamberti and Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Tamera Fine of the District of Maryland.

Attorney General Eric Holder announced today the appointment of United States Attorney John F. Walsh for the District of Colorado as chair of the Attorney General’s Advisory Committee of United States Attorneys (AGAC).  Attorney General Holder also appointed United States Attorney Richard S. Hartunian for the Northern District of New York to serve as vice chair.  Both appointments are effective immediately.

“Throughout their respective tenures in Colorado and the Northern District of New York, John Walsh and Richard Hartunian have been thoughtful leaders of the United States Attorney community, fierce advocates for the citizens they serve, and champions of the cause of justice,” said Attorney General Holder.  “Each of them has been instrumental in addressing sensitive legal issues, handling difficult cases, and shaping and implementing critical Smart on Crime reforms.  I thank John and Richard for agreeing to lead the Attorney General’s Advisory Committee – and for lending their perspectives and deep experience to the pressing policy questions about which I, and Attorney General-designate Loretta Lynch, will surely look to them for guidance and counsel.”

U.S. Attorney Walsh previously served on the AGAC from February 2011 to January 2013 as the chair of the Medical Marijuana Working Group and co-chair of the White Collar/Fraud Subcommittee.  He replaces U.S. Attorney for the Eastern District of New York and Attorney General nominee Loretta E. Lynch. 

U.S. Attorney Hartunian was appointed to the AGAC in April 2013 and has served as the chair of the Border and Immigration Subcommittee in addition to serving on several committees.  He replaces Acting Deputy Attorney General and former U.S. Attorney for the Northern District of Georgia Sally Quillian Yates.

Attorney General Holder also thanked U.S. Attorney Lynch and Acting Deputy Attorney General Yates for serving as chair and vice chair of the AGAC for the past two years.

“I want to express my heartfelt personal thanks to both Loretta Lynch and Sally Yates for their outstanding leadership of the Attorney General’s Advisory Committee,” said Attorney General Holder.  “It has been a pleasure and a privilege to work closely with them on a range of critical issues over the years.  I am both proud and deeply gratified that the American people will continue to benefit from their service in the new roles to which President Obama has nominated them.  And I am confident that the Department of Justice will only grow stronger under their leadership as Attorney General and Deputy Attorney General, respectively.”

The AGAC was created in 1973 to serve as the voice of the United States Attorneys and to advise the Attorney General on policy, management and operational issues impacting the offices of the United States Attorneys.

The Department of Justice today announced that Judge Amy Totenberg of the United States District Court for the Northern District of Georgia sentenced two defendants, Arturo Rojas-Coyotl, 28, and Odilon Martinez-Rojas, 43, both of Tenancingo, Tlaxcala, Mexico, to 192 months and 262 months in prison, respectively, for their roles in compelling three young women to prostitute in the Atlanta, Georgia., area.  In imposing the sentences, United States District Court Judge Totenberg also ordered the defendants to pay $180,000 in restitution to the victims. 

“Human trafficking is modern-day slavery-- period. No matter the label, the of use violence, intimidation, psychological coercion, deception, or fear to exploit fellow human beings is repugnant,” said Acting Deputy Attorney General Sally Quillian Yates.  “The long sentences handed down today are just one of the latest examples of the Justice Department's unshakable resolve to dismantle human trafficking networks and prosecute those who would commit these unspeakable crimes against some of the most vulnerable in our society."  Yates’ previous service as United States Attorney from 2010 to 2015 included making her district—the Northern District of Georgia—one of several key U.S. districts engaged in the Bilateral Human Trafficking Enforcement Initiative.

In October 2014, the defendants pleaded guilty to three counts of sex trafficking and three related immigration violations pertaining to three separate victims of their sex trafficking scheme.  According to the indictment and documents filed in court, in early 2006, Rojas-Coyotl lured a young Mexican national of indigenous heritage using false promises of love, legitimate work and a better life to induce her to travel with him into the United States.  Upon her arrival in the United States, Rojas-Coyotl and Martinez-Rojas used physical violence, threats, intimidation, deception and psychological manipulation to compel her to engage in prostitution, for the defendants’ profit, in Georgia and Alabama, for over a year and half until she escaped in November 2007. 

In March 2007, Rojas Coyotl and Martinez started romancing two young Guatemalan women and lured them to the United States in October 2007, under the same false pretenses.  The defendants then employed a nearly identical coercive scheme to compel the young women to prostitute in Georgia and Alabama before they escaped at separate times in early 2008. 

The defendants made the young women fearful of law enforcement and thus, the victims did not immediately come forward.  Once investigators did find and speak to them, the details of the trafficking emerged: the defendants ran a high volume, low cost business compelling the young women to have sex, at times with upwards of 20 men a night in 15 minute increments, for payment of $30- $35.  The money earned by the victims was split between the defendants and others who drove the young women to the clients.  One of the young women became ill and suffered great pain due to the repeated commercial sex acts she had to endure.

Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative, aimed at strengthening high-impact prosecutions under both U.S. and Mexican law, in order to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims and reunite victims with their children held under the trafficking networks’ control.  These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 50 defendants in multiple cases in Georgia, New York, Florida, and Texas since 2009, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers.

“These defendants targeted vulnerable individuals, preying on their hopes and dreams, dominating and deceiving them, and selling their bodies to strangers, all so the defendants could collect thousands of dollars in prostitution proceeds while the victims lived in fear, denied control over their own lives,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division.  “The Civil Rights Division is unwavering in its commitment to bringing human traffickers to justice and restoring the rights and dignity of the courageous survivors of all forms of modern-day slavery.”

“Sex trafficking is a horrendous crime that robs the victims of their freedom and dignity, leaving them feeling isolated and powerless,” said Acting United States Attorney John Horn for the Northern District of Georgia.  “This case hits new lows in depravity given the number of times these girls were victimized each day.  These defendants are being held accountable by U.S. laws which protect all victims of human trafficking.”

A third co-defendant, Daniel Garcia-Tepal, pleaded guilty to related immigration offenses.  A fourth co-defendant, Severiano Martinez-Rojas, remains a fugitive.

“This case represents one of the worst examples of human trafficking and why it is such a priority matter for not only law enforcement but for the many non-government agencies who help law enforcement in reporting human trafficking and providing assistance to those with nowhere else to turn,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Office.  “The FBI urges anyone with information regarding human trafficking activities to contact authorities and help put an end to modern day slavery.”

“The defendants mercilessly manipulated, abused and exploited these women in a criminal scheme that is all too common in our communities,” said Acting Special Agent in Charge Ryan L. Spradlin of ICE Homeland Security Investigations in Atlanta.  “Sex trafficking and other forms of human trafficking are a scourge on our society that HSI is dedicated to ending.”

This case was investigated by the Federal Bureau of Investigations and the Department of Homeland Security’s Homeland Security Investigations.  It is being prosecuted by Trial Attorney Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit and Assistant United States Attorney Susan Coppedge of the Northern District of Georgia. 

U.S. District Judge Ronnie Greer sentenced five people to prison terms in federal court in Greeneville, Tennessee, late yesterday for conspiring to commit Clean Air Act offenses in connection with the illegal removal and disposal of asbestos-containing materials at the former Liberty Fibers Plant in Hamblen County, Tennessee, the Justice Department announced.  A&E Salvage had purchased the plant out of bankruptcy in order to salvage metals which remained in the plant after it ceased operations.

U.S. District Judge Greer sentenced Mark Sawyer, 55, of Morristown, Tennessee, a former manager of A&E Salvage, to the statutory maximum of five years in prison, to be followed by two years of supervised release.  A&E Salvage manager Newell Lynn Smith, 59, of Miami, Florida, was sentenced to 37 months and two years of supervised release.  A&E Salvage Manager Eric Gruenberg, 50, of Lebanon, Tennessee, received a 28-month sentence.  Armida, 56, and Milto DiSanti, 54, of Miami, Florida, each received sentences of six months in prison, to be followed by six months of home confinement.  The judge ordered all the defendants to pay restitution of more than $10.3 million, which will be returned to Environmental Protection Agency’s (EPA) Superfund, which was used to clean up the plant site contamination. 

The sentencing took place over three days and included expert testimony that the exposures of the A&E Salvage workers to asbestos resulted in a substantial likelihood that the workers would suffer death or serious bodily injury as a result of their exposure constituted a risk of death or serious bodily injury.

“These co-conspirators took unacceptable and illegal risks with workers lives and the community’s health,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division.  “These significant sentences should send a message that illegal asbestos removal can have serious consequences, including a prison term for those responsible.”

According to court documents, all the defendants pleaded guilty to one criminal felony count for conspiring to violate the Clean Air Act’s “work practice standards” salient to the proper stripping, bagging, removal and disposal of asbestos.  According to the charges, the conspirators, engaged in a multi-year scheme in which substantial amounts of regulated asbestos containing materials were removed the former Liberty Fibers plant without removing all asbestos prior to demolition and stripping, bagging, removing and disposing of such asbestos in illegal manners and without providing workers the necessary protective equipment.  Asbestos has been determined to cause lung cancer, asbestosis and mesothelioma, an invariably fatal disease.  The EPA has determined that there is no safe level of exposure to asbestos. 

“We take our responsibility to protect the environment of East Tennessee very seriously, especially when it involves the health and safety of its residents,” said U.S. Attorney Bill Killian of the Eastern District of Tennessee.  “We will continue to aggressively prosecute those who violate the laws restricting substances which can potentially cause serious diseases.  EPA, TDEC, Senior Trial Attorney Todd Gleason and Assistant U.S. Attorney Matthew Morris should be commended for their combined efforts which resulted in a successful outcome in this case.”

“Illegal disposal of asbestos endangers human health, plain and simple,” said Special Agent in Charge Maureen O’Mara of EPA’s Criminal Enforcement Program in Tennessee.  “The defendants conspired to violate the Clean Air Act by hiring untrained workers to remove materials, without proper safety equipment, that contained asbestos.  This put not only the workers’ health and safety at great risk, but that of the entire community.  Today’s sentencing demonstrates that EPA and its partner agencies will prosecute those who pollute the environment by breaking the law.”

This case was investigated by Special Agents of the Environmental Protection Agency and individuals from the Tennessee Department of Environmental Conservation.  The case was prosecuted by Assistant U.S.  Attorney Matthew T. Morris and Senior Trial Attorney Todd W. Gleason, Environmental Crimes Section of the Department of Justice.

ALICIA A.G. LIMTIACO, United States Attorney for Guam and the Northern Mariana Islands, announced that defendant KUN SUP SONG, age 57, was sentenced yesterday by Chief Judge Frances Tydingco-Gatewood in the District Court of Guam, to serve five years of probation with conditions to include eight months of home confinement, and to pay $170,021 in restitution to the U.S. Department of Agriculture’s (“USDA”) Food and Nutrition Service.  Also, Judge Tydingco-Gatewood ordered a $70,000 money judgment of forfeiture; and the forfeiture of approximately $38,000 and a Toyota 4Runner involved in the fraud which had been seized by the Federal Bureau of Investigation.  SONG owned and operated Sky Mart, a small convenience store in Yigo.  He pleaded guilty on March 27, 2014 to unauthorized use of food stamp benefits.

SONG’s store participated in the Supplemental Nutrition Assistance Program (“SNAP”), previously known as the Food Stamp Program.  Under SNAP, authorized recipients are issued a certain amount of benefits each month, which they may use to purchase eligible food items.  SNAP recipients receive their benefits in the form of a credit on their personal electronic benefit transfer (“EBT”) card.  SNAP benefits may not be used to purchase ineligible items, and cannot be redeemed for cash, loans, or items sold on credit.

U.S. Attorney Limtiaco states "Opportunistic store owners who take advantage of our low-income population, by adding interest for items bought on credit, unlawfully take monies that food stamp card holders could have used on food.  Food stamp card holders cannot be discriminated against by charging them interest.  Retailers who do not follow SNAP regulations by concealing they are selling items on credit, or redeeming food stamp cards for cash or loans, will not be tolerated and are subject to criminal prosecution."

From January 1, 2011 to August 4, 2013, the defendant engaged in a scheme to defraud and fraudulently obtain money in excess of $170,000 from the USDA.  The defendant used his business to redeem SNAP benefits in exchange for extending credit to SNAP recipients, and payment on their credit accounts with Sky Mart.  The defendant also redeemed SNAP benefits for ineligible purchases made by customers.  As part of the scheme, the defendant engaged in fictional and illegal transactions with SNAP recipients that purported to be for eligible food items.

Through the hard work of the Federal Bureau of Investigation and USDA Office of Inspector General's Office, in August 2013, law enforcement were able to seize a portion of the proceeds of the fraud and a vehicle which helped facilitate the fraud.

U.S. Attorney Limtiaco stated, “The Court’s forfeiture order effectively results in taking the profit out of this food stamp fraud. The defendant's scheme to defraud involved the SNAP program, which is designed to supplement the income of eligible members of the community and ensure families can afford the groceries they need.  When opportunistic retailers defraud the system, limited tax dollars are diverted from their intended use.”

The case was investigated by the Federal Bureau of Investigation and USDA Office of Inspector General.  Assistants U.S. Attorney Marivic David and Belinda Alcantara prosecuted the case.

A federal court in Greenville, Mississippi, has permanently barred Nathaniel Kimble from preparing federal income tax returns for others, the Justice Department announced today. 

The civil injunction order, to which Kimble consented, was signed by Judge Debra M. Bowen of the U.S. District Court for the Northern District of Mississippi. 

According to the complaint, from 2010 through the present, Kimble prepared tax returns under the business name Kimble Tax Services in Greenville, Mississippi.  The complaint alleges that Kimble learned how to prepare tax returns by working with Alice Mobley.  Mobley, who was sentenced to serve 75 months in prison after pleading guilty to three charges related to her tax return practices in Alabama, admitted in her criminal case that she conspired with workers of Kimble Tax Services to file tax returns she knew were fraudulent.  In this regard, the complaint alleged that Kimble knowingly prepared federal income tax returns for customers that understated the customers’ tax liability and overstated refunds they claimed by inflating or fabricating earned income tax credits that his customers were not eligible to take.

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2014.  The IRS has some tips on their website for choosing a tax preparer.  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 website.  An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page.  If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details. 

A Detroit federal grand jury returned a one-count indictment against an executive of a Japanese manufacturer of automotive parts for his participation in a conspiracy to fix prices of seatbelts, the Department of Justice announced today.

The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Hiromu Usuda, an executive at Takata Corp., with conspiring to rig bids for, and to fix, stabilize and maintain the prices of, seatbelts sold to Toyota Motor Corp., Honda Motor Company Ltd., Nissan Motor Co. Ltd., Mazda Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and/or certain of their subsidiaries, for installation in vehicles manufactured and sold in the United States and elsewhere.  Usuda served as Group and Department Manager in the Customer Relations Division at Takata, from January 2005 until at least February 2011.

“Antitrust violators who refuse to accept responsibility for their crimes leave us no choice but to indict,” said Brent Synder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.  “We will continue to prosecute those that commit these crimes.”

The indictment alleges, among other things, that from at least Jan. 1, 2005, through at least February 2011, Usuda and others attended meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the prices of seatbelts sold to the automobile manufacturers.  It alleges that Usuda participated directly in the conspiratorial conduct and that he directed, authorized and consented to his subordinates’ participation.

Takata is a Tokyo-based manufacturer of automotive parts, including seatbelts.  Takata supplies automotive parts to automobile manufacturers in the United States, in part, through its U.S. subsidiary, TK Holdings Inc., located in Auburn Hills, Michigan.  Takata pleaded guilty on Dec. 5, 2013, for its involvement in the conspiracy, and was sentenced to pay a criminal fine of $71.3 million.  Four other executives from Takata have pleaded guilty, have been sentenced to serve time in a U.S. prison and to pay criminal fines for their roles in the conspiracy.

Including Usuda, 50 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry.  Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.

Usuda is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.

A San Jose, California, woman was sentenced to serve 22 months in prison to be followed by three years of supervised release for committing tax fraud and bank fraud, Principal Deputy Assistant Attorney General Caroline D. Ciraolo for the Justice Department’s Tax Division and U.S. Attorney Melinda Haag for the Northern District of California announced today. 

Elena Moreno, 40, was also ordered to pay $422,962.13 in restitution and to forfeit $3.328 million as well as her interest in two pieces of real property.  Prior to pleading guilty in this case, Moreno and her co-defendants, Arturo and Fidencio Moreno, paid more than $200,000 in restitution to the Internal Revenue Service (IRS) for losses associated with their fraud.

According to court documents, beginning in 2005 and continuing through at least 2010, family members Arturo Moreno, Elena Moreno and Fidencio Moreno conspired to defraud the United States by failing to report all of the gross receipts from their charter bus company, Quality Assurance Travel (QAT), on the corporate tax returns for QAT and on their personal income tax returns that they filed with the IRS.  The total amount of unreported gross receipts during those years exceeded $966,908.  Arturo and Fidencio Moreno were each 50 percent owners of QAT.  The unreported income consisted primarily of cash receipts that were paid by passengers as they boarded the bus, but were not deposited into the business bank accounts or disclosed to the Moreno’s tax return preparer.

According to court documents, between 2005 and July 2013, Elena Moreno and her co-defendants also conspired to commit bank fraud and wire fraud by submitting false and fraudulent loan applications that overstated the applicants’ income and assets in order to acquire and refinance homes in San Jose.  In total, the defendants fraudulently obtained more than $3.3 million in loans through their conspiracy.  After the defendants fell behind with the loan payments, they attempted to avoid foreclosure by submitting false and fraudulent applications to modify these loans.  One of the four properties was ultimately sold through a short sale in 2013, while another was foreclosed upon in 2014.  The total losses to the financial institutions resulting from the foreclosure exceeded $200,000.

The case was investigated by IRS-Criminal Investigation.  Trial Attorney Todd P. Kostyshak of the Tax Division and Assistant U.S. Attorneys Thomas Moore and Katherine L. Wong prosecuted the case. 

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

The Department of Justice collected $1.861 billion in criminal fines and penalties resulting from Antitrust Division prosecutions in the fiscal year that ended on Sept. 30, 2014.  Contributing in part to one of the largest yearly collections for the division, five of the companies paid in full penalties that exceeded $100 million, including a $425 million criminal fine levied against Bridgestone Corp., the fourth-largest fine the Antitrust Division has ever obtained.  The second-largest fine collected was a $195 million criminal fine levied against Hitachi Automotive Systems Ltd.  The three additional companies that paid fines and penalties exceeding $100 million were Mitsubishi Electric Corp. with $190 million, Toyo Tire & Rubber Co. Ltd. with $120 million and JTEKT Corp. with $103.2 million.  The collection total also includes penalties of more than $561 million received as a result of the division’s LIBOR investigation, which has been conducted in cooperation with the Justice Department’s Criminal Division.  In addition, in the last fiscal year the division obtained jail terms for 21 individual defendants, with an average sentence of 26 months, the third-highest average ever. 

“The size of these penalties is an unfortunate reminder of the powerful temptation to cheat the American consumer and profit from collusion,” said Assistant Attorney General Bill Baer for the Antitrust Division.  “We remain committed to ensuring that corporations and individuals who collude face serious consequences for their crimes.”

A civil complaint was filed today in federal court in Texas against Commercial Recovery Systems Inc. (CRS), of Plano, Texas, its president, Timothy Ford, and its former vice president, David Devany, to assess civil penalties for deceptive and abusive debt collection practices, and to prevent further consumer abuse, the Justice Department announced today.

CRS is a third-party debt collector that primarily collects auto loan and credit card debts on behalf of creditors.  The complaint alleges that, in numerous instances, collectors at CRS called consumers and falsely claimed to be attorneys or judicial employees.  According to the complaint, collectors also falsely stated that lawsuits had already been filed against consumers and offered to resolve the fictitious lawsuits “out of court.”  They left voicemail messages falsely representing that a failure to return the collector’s call would result in a waiver of rights.  The government alleges that, in some instances, collectors told consumers that their wages, taxes and 401(K) plans would be garnished if they did not pay.  In reality, CRS had neither the intent nor the authority to file lawsuits against the consumers or attempt to have their wages garnished.

“The defendants in this case are alleged to have lied to consumers in violation of the law,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division.  “We will enforce these laws and stop those who would use deception to extract money from American consumers.”

Prompted by numerous consumer complaints of deceptive and abusive debt collection practices, the U.S. Federal Trade Commission (FTC) launched an investigation.  The complaint was filed in the U.S. District Court for the Eastern District of Texas at the request of the FTC, and alleges violation of the Federal Trade Commission Act and the Fair Debt Collection Practices Act.  The government is seeking civil monetary penalties and a permanent injunction to prevent the defendants from engaging in such violations.

“When it comes to debt collection, people have rights,” said Director Jessica Rich of the

FTC’s Bureau of Consumer Protection.  “It’s illegal to harass people, or to make false threats about wage garnishment or lawsuits.  Unfortunately, these unscrupulous debt collectors systematically lied to the people they called.”

The government is represented by Trial Attorney Heide L. Herrmann of the Civil Division’s Consumer Protection Branch, with the assistance of Attorneys Anne D. LeJeune and Reid A. Tepfer of the FTC’s Southwest Region.

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

Thirteen commercial fishermen in North Carolina and Georgia have been charged in federal court in Raleigh, North Carolina, for their role in the illegal harvest and sale and false reporting of approximately 90,000 pounds of Atlantic striped bass from federal waters off the coast of North Carolina during 2009 and 2010, the Justice Department announced today.  The average retail value of the illegally harvested striped bass is approximately $1.1 million.

This investigation began as a result of the U.S. Coast Guard boarding of the fishing vessel Lady Samaira in February 2010, based on a complaint that multiple vessels were fishing Striped Bass illegally.  The individuals have been charged with violating the Lacey Act, which is a federal law that prohibits individuals from transporting, selling or buying fish and wildlife harvested illegally.  Additionally, 11 of these fishermen also have been charged with filing false reports in connection with the illegally harvested fish.  One of the fishermen is also charged with obstruction of a proceeding before a federal agency.  Specifically, the indictments allege that the commercial fishermen transported and sold Atlantic striped bass, knowing that they were unlawfully harvested from federal waters off the coast of North Carolina.  In an effort to hide their illegal fishing activities, these fishermen falsely reported harvesting these fish from state waters, where it would have been legal.

“The illegal poaching of striped bass by commercial fishermen can have a huge collective impact on the fish resource and has the potential to devastate the future livelihoods of law abiding commercial fishermen,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “The vast majority of fishermen do respect the law and carefully monitor their harvest to ensure they stay within the well-researched limits.  Those who deliberately break the law will be prosecuted.”

“The Atlantic Striped Bass fishery is extremely important to the economy of the State of North Carolina as well as our sister States along the Atlantic seaboard, and it represents a success in species recovery thanks to conservation, management, and law-abiding fishermen,” said U.S. Attorney for the Eastern District of North Carolina Thomas G. Walker.  “Illegal harvesting of this protected species and submitting false reports to federal agencies undermine those efforts and adversely impact our entire coastal communities.”

All of the defendants are licensed by the state of North Carolina and the National Oceanic and Atmospheric Administration (NOAA) to fish in state waters only for striped bass.  The individuals charged are:

• Gaston Saunders Jr. of Wanchese, North Carolina

• Bryan Daniels of Belhaven, North Carolina

• Ellis Leon Gibbs Jr. of Engelhard, North Carolina

• David Saunders of Poplar Branch, North Carolina

• Michael Potter of Bayboro, North Carolina

• Steven Daniels of Wanchese, North Carolina

• James R. Craddock of Manns Harbor, North Carolina

• James K. Lewis of Gloucester, North Carolina

• Joseph H. Williams of Brunswick, Georgia

• Dewey W. Lewis, Jr. of Newport, North Carolina

• Dwayne J. Hopkins of Belhaven, North Carolina

• Ronald W. Berry of Kill Devil Hills, North Carolina

• John F. Roberts of Engelhard, North Carolina

In early spring each year, wild coastal striped bass, Morone saxatilis, known regionally as “rockfish,” “striper” or “rock,” enter the estuary or river where they were born to spawn and then return to ocean waters to live, migrating along the coastline.  They may live up to 30 years and reach 50 pounds or more.  The population of coastal Atlantic striped bass depends heavily upon the capability of older, larger, female striped bass to successfully reproduce.   

Under federal law, Atlantic striped bass may not be harvested from or possessed in federal waters.  This ban on fishing for Atlantic striped bass in federal waters has been in place since 1990 due to drastic declines of the stock that occurred in the 1970’s.  North Carolina allows fishermen to harvest fish from state waters, but often limits fishermen to no more than 100 fish per fishing trip.  Commercial fishermen are required to report on a fishing vessel trip report the fish harvested from state waters; that report is then submitted to NOAA’s National Marine Fisheries Service (NMFS).  NOAA uses the information on this report to assess the fishery and its sustainability throughout the eastern seaboard.

According to the Atlantic Marine Fisheries Commission, “striped bass have formed the basis of one of the most important fisheries on the Atlantic coast for centuries.  Early records recount their abundance as being so great at one time they were used to fertilize fields.  However, overfishing and poor environmental conditions lead to the collapse of the fishery in the 1980s.”

The North Carolina Division of Marine Fisheries, along with other states, has reduced, twenty-five percent, the catch limits for the 2015 striped bass commercial fishing season in the Atlantic Ocean and Albemarle Sound/Roanoke River areas, citing a decline in stocks.  The division cited 2013 surveys revealing that the female spawning stock has been steadily declining.  The reduction applies to all commercial and recreational striped bass fishing for all the eastern coastal states.

A criminal indictment is not a finding of guilt.  An individual charged by criminal indictment is presumed innocent unless and until proven guilty in a court of law. 

The Lacey Act makes it unlawful for a person to transport or sell fish that were taken in violation of any law or regulation of the United States and carries a maximum penalty of five years in prison and a fine of up to $250,000, plus the potential forfeiture of the vessels and vehicles used in committing the offense.

The charges are a result of the investigation by NOAA’s Office of Law Enforcement, with assistance from the U.S. Coast Guard and its Investigative Service, the North Carolina Marine Patrol, and the Virginia Marine Police.  These cases are being prosecuted primarily by Trial Attorneys Shennie Patel, Shane Waller, Lauren Steele, and Joel LaBissonniere, from the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division, and Assistant U.S. Attorney Banumathi Rangarajan.

A current Puerto Rico Superior Court Judge was convicted yesterday by a federal jury in Puerto Rico of accepting bribes to acquit a businessman of vehicular homicide charges.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.

“Judicial corruption strikes at the very heart of our legal system,” said Assistant Attorney General Caldwell.  “Justice must be determined by the evidence and the law, not by bribe payments from those with the deepest pockets.  We are committed to maintaining the public’s trust by rooting out corruption wherever we find it – whether it be a politician in a backroom or a judge on the bench.”

“This conviction should serve to restore the public’s trust in the fairness of the judicial system,” said U.S. Attorney Rodríguez-Vélez.  “We hope that the jury’s verdict brings some closure to the family of Félix Babilonia.  I congratulate the prosecutors and the agents whose hard work and dedication brought about Acevedo-Hernández's conviction.”

“Justice is for all the people, not for a select few who use money and power to buy favorable verdicts,” said Special Agent in Charge Cases.  “The San Juan Division of the FBI is committed to continue investigating corruption at all levels in Puerto Rico and the United States Virgin Islands.”

Puerto Rico Superior Court Judge Manuel Acevedo-Hernandez, 62, was convicted late yesterday following a one-week trial of conspiracy to commit federal programs bribery and receipt of a bribe by an agent of an organization receiving federal funds.  Sentencing is scheduled for April 20, 2015, before Chief U.S. District Judge Aida Delgado-Colon of the District of Puerto Rico.

According to evidence at trial, Acevedo-Hernandez presided over a case involving Lutgardo Acevedo-Lopez, 39, a certified public accountant in Aguadilla, Puerto Rico.  On June 30, 2012, a car driven by Acevedo-Lopez collided with another car, resulting in the death of the other car’s driver.  Acevedo-Lopez was charged with criminal vehicular homicide in connection with the incident.  Acevedo-Hernandez, a supervisory superior court judge in the Aguadilla judicial region of Puerto Rico, acquitted Acevedo-Lopez of all charges.

The evidence demonstrated that Acevedo-Lopez used an intermediary to bribe Acevedo-Hernandez by paying taxes owed by Acevedo-Hernandez, paying for the construction of a garage for Acevedo-Hernandez, and providing Acevedo-Hernandez with a motorcycle, clothing and accessories, including cufflinks and a watch.  In exchange, Acevedo-Hernandez acquitted Acevedo-Lopez of all charges.

Acevedo-Lopez pleaded guilty to conspiracy to commit federal programs bribery and paying a bribe to an agent of an organization receiving federal funds on Aug. 14, 2014. 

The case was investigated by the FBI’s San Juan Division and is being prosecuted by Trial Attorney Peter Mason of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Timothy Henwood and Jose Capo of the District of Puerto Rico.

Citizens of Puerto Rico who have allegations of public corruption are encouraged to contact the FBI’s San Juan Division at (787) 754-6000.

Today, the Justice Department reached an agreement with Columbus, Georgia, that will address the remaining goals of a long-standing consent decree calling for reforms of its mental health system. 

Muscogee County has made significant improvements at the Muscogee County Jail in the areas of security, environmental health and safety as well as modest improvements in the provision of medical care following a 1999 federal consent agreement.  In order to address the continued deficiencies that remain, with respect to identifying, treating and housing prisoners with severe and persistent mental illness, jail leadership worked collaboratively with the Justice Department to create additional solutions that will improve mental health care without compromising security through a supplemental agreement.    

The existing consent decree will remain in place and the supplemental agreement adds crucial safeguards for prisoners with serious mental illness.  The supplemental agreement restricts the use of solitary confinement for prisoners with serious mental illness and limits the use of solitary confinement after 14 days.  The jail will provide secure mental health and step-down units, and programs to provide prisoners with serious mental illness a total of at least 24 hours structured and unstructured time out-of-cell each week.  These and other measures will vastly improve the quality of mental health care services in the Muscogee County Jail, while helping to minimize violence in the facility.

The supplemental agreement also includes robust training requirements.  All correctional staff must receive Crisis Intervention Team training, including training on understanding and recognizing psychiatric signs and symptoms to identify prisoners who have or may have serious mental illness, using de-escalation techniques to calm and reassure prisoners who have or may have serious mental illness before resorting to use of force, discipline, or solitary confinement, and making appropriate mental health referrals. 

“The Constitution requires that those detained in our nation’s jails and prisons are treated humanely and receive adequate mental health care,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division.  “We are glad to have been able to work with Sheriff Darr, Jail Commander Collins, and Columbus, Georgia, in crafting sensible solutions to address a pressing issue confronting corrections administrators throughout this country:  the burgeoning numbers of men and women with mental illness in our correctional institutions. 

“These reforms will not only improve mental health care for this vulnerable population, but also enhance security within the facility, and facilitate inmates’ successful reintegration into the community upon release, which will help make our society safer,” said U.S. Attorney Michael Moore for the Middle District of Georgia.

The agreement requires a monitor to oversee implementation of the agreement and issue a compliance report every six months.  

The Civil Rights of Institutionalized Persons Act authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison, or other correctional facility.  Please visit the division website to learn more about this act and other laws enforced by the Civil Rights Division.

This agreement is due to the efforts of the Special Litigation Section of the Civil Rights Division, and the leadership of Columbus, Georgia, a consolidated government, acting by and through the Sheriff of Muscogee County, in his official capacity, and the Columbus City Manager, in his official capacity, as authorized by the Columbus Council. 

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Carter M. Stewart for the Southern District of Ohio and Acting Special Agent in Charge John A. Barrios of the FBI’s Cincinnati Field Division announced that a federal grand jury has charged Christopher Lee Cornell, 20, of Green Township, Ohio, with attempting to kill officers and employees of the United States, solicitation to commit a crime of violence and possession of a firearm in furtherance of a crime of violence in an indictment returned in Cincinnati.  Cornell was charged for his alleged plot to attack the U.S. Capitol and kill government officials.

The indictment alleges that from August 2014 through January 2015, Cornell plotted an attack on the U.S. Capitol that would have killed officers and employees of the United States during their official duties.  During that same time, the defendant allegedly attempted to persuade another to join him in his planned act of violence.  Cornell also allegedly possessed two semi-automatic rifles and approximately 600 rounds of ammunition.

Attempted murder of government employees and officials is a crime punishable by up to 20 years in prison.  Solicitation to commit an attempted murder is a crime punishable by 20 years in prison.  Possession of a firearm in furtherance of an attempted crime of violence is a crime punishable by a mandatory sentence of five years in prison.

Cornell was arrested on Jan. 14, 2015, by the FBI Joint Terrorism Task Force (JTTF).  The JTTF is made up of officers and agents from the Cincinnati Police Department, Colerain Police Department, Dayton Police Department, Ohio State Highway Patrol, United States Immigrations and Customs Enforcement, United States Secret Service, West Chester Police Department and Xenia Police Department.

Cornell is scheduled for an arraignment on the charges on Jan. 22, 2015, at 1:30 p.m., before Magistrate Judge Stephanie Bowman.

Assistant Attorney General Carlin and U.S. Attorney Stewart commended the investigation of this case by the JTTF.  The case is being prosecuted by Assistant U.S. Attorney Tim Mangan and Michael Dittoe of the Justice Department National Security Division Counterterrorism Section.

An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

Cornell Indictment

On January 15, 2015, U.S. Marshals Service (USMS) Top 15 Most Wanted fugitive Peter Castillo, wanted in Massachusetts for the killing of U.S. Army combat veteran Stephen Perez, was captured in the Dominican Republic. USMS Investigative Operations Division-International Investigations Branch (IOD-IIB) and Interpol Washington played a significant role in Castillo’s capture. Without the issuance of an Interpol Red Notice, and without inter-agency communication between Interpol Washington and Interpol Santo Domingo, Dominican authorities would not have taken Castillo into custody. Additionally, USMS/Interpol Washington coordinated the logistics surrounding Castillo’s overseas arrest, with the U.S. Department of Justice (DOJ)-Office of International Affairs (OIA).

http://www.usmarshals.gov/investigations/most_wanted/castillo/castillo-cap.htm

 

 

 

 

Defendants Allegedly Conspired to Carry Out Armed Attacks Against United States Military Personnel and Facilitated the Entry of an American Citizen into Al-Qaeda

A complaint and arrest warrant were unsealed today in federal court in the Eastern District of New York charging Saddiq Al-Abbadi, also known as “Sufiyan al-Yemeni” and “Sufwan,” and Ali Alvi, also known as “Issa al-Yemeni,” with conspiracy to murder United States nationals abroad and providing material support to al-Qaeda.  Alvi’s initial appearance was held before United States Magistrate Judge Steven I. Locke on Jan. 18, 2015, and Al-Abbadi’s initial appearance is scheduled today before United States Magistrate Judge Lois Bloom.  Al-Abbadi and Alvi were arrested in Saudi Arabia pursuant to the pending warrants in this case and lawfully expelled to the United States.

The charges were announced by Loretta E. Lynch, U.S. Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; and Andrew G. McCabe, Assistant Director in Charge, Federal Bureau of Investigation, Washington Field Office.

As alleged in the complaint, Al-Abbadi and Alvi are both members of al-Qaeda who engaged in attacks against United States military forces stationed in Afghanistan.  Between 2003 and 2007, Al-Abbadi also fought against United States military forces in Iraq.  In approximately March 2008, Al-Abbadi and Alvi traveled to the Federally Administered Tribal Areas of Pakistan for the purpose of training with and fighting for al-Qaeda.  During that time period, both defendants helped an American citizen gain entry into al-Qaeda so that he could fight against U.S. troops in Afghanistan and U.S. citizens in the homeland. 

In approximately late spring and summer 2008, Al-Abbadi and Alvi traveled from Pakistan to Afghanistan to conduct attacks against United States military personnel stationed there.   Al-Abbadi led a battle against U.S. forces in Paktya Province in May 2008 during which one U.S. Army Ranger was killed and several others were seriously wounded.

“There is no escape from the reach of our law for violent terrorists, especially if they target our military,” stated United States Attorney Lynch.  “Al-Abbadi and Alvi may have operated in the mountains of Afghanistan, but now they face justice in a courtroom in Brooklyn.”  Ms. Lynch extended her grateful appreciation to the FBI.

“With the charges announced today, these defendants will face justice for conspiring to kill Americans overseas and providing material support to al-Qaeda,” said Assistant Attorney General Carlin.  “Seeking to identify, thwart, and hold accountable those who target U.S. citizens and interests around the world will remain a top priority of the National Security Division.  I want to thank the many agents, analysts, and prosecutors who are responsible for this matter.”

“The arrest and prosecution of these two individuals, who allegedly directly supported the mission of a designated terrorist organization, is a major step in the international cooperation to combat terrorism,” said FBI Assistant Director in Charge McCabe.  “On a daily basis, the FBI is faced with a complex threat environment that is always evolving and changing.  Through international partnerships, the FBI will continue to pursue those who provide support to terrorist groups and ensure that they are brought to justice.”­­    

If convicted, each defendant faces a maximum sentence of life imprisonment.  The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.

The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad, Michael P. Canty and Douglas M. Pravda, with assistance provided by Trial attorney Josh Parecki of the Justice Department’s Counterterrorism Section and by the Office of International Affairs.

The Defendants:

SADDIQ AL-ABBADI

Age:  36

Nationality: Yemeni

ALI ALVI

Age:  30

Nationality: Yemeni

E.D.N.Y. Docket No. 09-MJ-372

A third member of an international computer hacking ring has pleaded guilty to conspiring to break into computer networks of prominent technology companies to steal more than $100 million in intellectual property and other proprietary data. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Charles M. Oberly III of the District of Delaware and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Field Office made the announcement.

Nathan Leroux, 20, of Bowie, Maryland, pleaded guilty to conspiracy to commit computer intrusions and criminal copyright infringement based on his role in the cyber theft of software and data related to the Xbox One gaming console and Xbox Live online gaming system, and popular games such as the “FIFA” online soccer series; “Call of Duty:  Modern Warfare 3;” and “Gears of War 3.”  Leroux has been in custody since attempting to flee into Canada from Buffalo, New York, on June 16, 2014.  A sentencing hearing is set before U.S. District Judge Judge Gregory M. Sleet of the District of Delaware on May 14, 2015.

Sanadodeh Nesheiwat, 28, of Washington, New Jersey, and David Pokora, 22, of Mississauga, Ontario, Canada, previously pleaded guilty to the same conspiracy charge on Sept. 30, 2014.  They remain in custody pending their sentencing hearings, which are scheduled for April 2015.  Pokora’s guilty plea is believed to have been the first conviction of a foreign-based individual for hacking into U.S. businesses to steal trade secret information.  Charges against a fourth defendant, Austin Alcala, 19, of McCordsville, Indiana, remain pending. 

According to Leroux’s admissions in connection with his guilty plea, he was part of the hacking conspiracy between January 2011 and September 2012.  During that period, hacking group members located in the United States and abroad gained unauthorized access to computer networks of various companies, including Microsoft Corporation, Epic Games Inc., Valve Corporation and Zombie Studios.  The conspirators accessed and stole unreleased software, software source code, trade secrets, copyrighted and pre-release works, and other confidential and proprietary information.  Members of the conspiracy also allegedly stole financial and other sensitive information relating to the companies – but not their customers – and certain employees of such companies. 

Specifically, the data theft targeted software development networks containing source code, technical specifications and related information for Microsoft’s then-unreleased Xbox One gaming console, as well as intellectual property and proprietary data related to Xbox Live and games developed for that online gaming system.

Leroux admitted in court that he and others used the stolen intellectual property to build, and attempt to sell, counterfeit versions of the Xbox One console before its public release in November 2013.  In July 2013, the FBI intercepted a counterfeit console built by Leroux, which was destined for the Republic of Seychelles. 

Leroux also admitted that he developed a software exploit that allowed him and others to generate millions of “coins” for the FIFA soccer games playable on the Xbox Live platform.  These coins are the virtual, in-game currency used to build a “FIFA Ultimate Team” in the games.  Without the authorization of Electronic Arts, the intellectual property rights holder to the FIFA games, Leroux and others sold bulk quantities of the “FIFA coins” via online black markets. 

The value of the intellectual property and other data stolen by the hacking ring, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million.  To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.

This case is being investigated by the FBI, with assistance from the Criminal Division’s Office of International Affairs, the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Protection, the U.S. Postal Inspection Service, the Canada Border Services Agency, the Western Australia Police and the Peel Regional Police of Ontario, Canada.  The case is being prosecuted by Trial Attorney James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware.          

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara for the Southern District of New York and Assistant Director-in-Charge George Venizelos of the FBI’s New York Office, announced today that a federal grand jury returned a two-count indictment against Cheng Le for attempting to acquire and distribute ricin and committing postal fraud.  Le was arrested on Dec. 23, 2014, by the FBI in Manhattan.  He was presented on a Complaint before the U.S. Magistrate Judge James C. Francis IV on Dec. 24, 2014, and has been detained since his arrest.  He is expected to be arraigned on Friday, January 23, 2015, before the United States District Judge Alison J. Nathan.

“As alleged, Cheng Le attempted to acquire ricin, a potentially lethal toxin, through the Dark Web so that it could be used for deadly purposes,” said U.S. Attorney Bharara.  “Thankfully, with the help of our law enforcement partners he was intercepted and must now answer for his alleged crimes.”

“In the shadows of the Dark Web, criminals hide behind a veil of anonymity, sniffing out hidden opportunities to buy and sell illegal and potentially dangerous merchandise,” said Assistant Director-in-Charge Venizelos.  “As alleged, in this case, activity carried out in the marketplace served as a conduit for Le to obtain ricin. In his desire to acquire this potentially deadly toxin, he picked his own poison and now faces the consequences of the justice system.”

According to the Complaint, which was unsealed today in Manhattan federal court, and the indictment:

Ricin is a highly potent and potentially fatal toxin with no known antidote.  In December 2014, an individual (the Ricin Buyer) contacted an FBI online covert employee (the OCE) on an online forum.  During Dec. 2014, the Ricin Buyer exchanged a series of messages with the OCE, during which the Ricin Buyer explored the possibility of the OCE supplying the Ricin Buyer with ricin, for the Ricin Buyer to resell to at least one secondary buyer. 

On or about Dec. 18, 2014, the Ricin Buyer directed the OCE to send a quantity of ricin to a particular postal box in Manhattan (the Postal Box).  The FBI later determined that the Postal Box belonged to Cheng Le.  Later that same day, FBI agents observed Le wear latex gloves while retrieving a package from the Postal Box (the Package) and mailing it at a nearby post office (the Post Office).  Law enforcement officers examined the Package, confirmed that it did not contain any hazardous materials, and determined that Le had listed a fake name as the Package’s return address.  A postal employee (the Postal Employee) informed the FBI that the Postal Employee had seen Le at the Post Office on multiple prior occasions and that Le has worn blue latex gloves on at least some of those occasions.

The FBI prepared a package (the Sham Shipment) that was consistent with the Ricin Buyer’s request to the OCE, which was then delivered to the Postal Box.  On Dec. 23, 2014, Le, wearing latex gloves, retrieved the Sham Shipment, opened it, and took the contents to his apartment, whereupon he was arrested by FBI agents.

*                      *                      *

The indictment charges Le, 21, in two counts.  Count One charges Le with attempting to possess a biological toxin for use as a weapon, and carries a maximum sentence of life in prison.  Count Two charges Le with using a fictitious name in furtherance of unlawful business involving the mail, and carries a maximum sentence of five years’ imprisonment.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Assistant Attorney General Carlin is grateful for the outstanding investigative efforts of the FBI, the New York City Police Department (NYPD) and the United States Postal Inspection Service (USPIS).  Le’s arrest is the result of the close cooperative efforts of the Justice Department’s National Security Division, U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force—which consists of law enforcement officers of the FBI, NYPD, USPIS and other agencies.

The case is being prosecuted by the office’s Terrorism and International Narcotics Unit.  Assistant U.S. Attorneys Ilan Graff and Andrew D. Beaty are in charge of the prosecution, with assistance provided by Trial Attorney Joseph Kaster of the Justice Department’s Counterterrorism Section.

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

Indictment

Complaint

A leader of the Las Vegas Playboy Bloods street gang was sentenced to 23 years in prison today for engaging in a racketeering conspiracy and possessing crack cocaine with the intent to distribute it, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.

Markette Tillman, 31, of Las Vegas, Nevada, pleaded guilty on July 29, 2014, two days into his jury trial, before U.S. District Judge Kent J. Dawson of the District of Nevada. 

According to Tillman’s plea agreement and evidence presented at trial, the Bloods is a nationally-known criminal street gang whose members engage in drug trafficking and acts of violence.  The Playboy Bloods is a local “set” or affiliate of the national Bloods gang with local control and operation within the Las Vegas metropolitan area.  The Playboy Bloods operate primarily in the Sherman Gardens Annex, a Las Vegas public housing complex commonly called the “Jets.”

Tillman admitted that on Jan. 20, 2004, he aided and abetted the murder of a security guard at the Jets.  The guard approached Tillman and several other Playboy Bloods and told them to leave the property.  An argument ensued and the guard rode away on his bicycle to get help.  One of the Playboy Bloods fired a gun at the guard, hitting him two times and killing him.

Tillman further admitted that he agreed with other members of the Playboy Bloods to manufacture and distribute narcotics, primarily crack cocaine, and to operate drug houses within the Playboy Bloods’ turf.  Tillman specifically admitted to distributing in excess of 280 grams of crack cocaine over the course of the racketeering conspiracy.

Tillman was the last of 10 gang members charged in the indictment filed in 2008 to be sentenced.  The nine other convicted gang members received the following sentences:

• Jacorey Taylor, aka “Mo-B,” 31, was sentenced to life in prison on Oct. 21, 2013, after being convicted by a jury of engaging in a racketeering conspiracy, committing violent crimes in aid of racketeering activity, using a firearm during a crime of violence, engaging in a drug-trafficking conspiracy and possessing crack cocaine with the intent to distribute it.

• Steven Booth, aka “Stevie-P,” 27, was sentenced to 20 years in prison on April 10, 2013, after pleading guilty to engaging in a racketeering conspiracy involving two murders.

• Reginald Dunlap, aka “Bowlie,” 30, was sentenced to 20 years in prison on April 9, 2013, after pleading guilty to engaging in a racketeering conspiracy involving one murder.

• Demichael Burks, aka “Mikey P,” 29, was sentenced to 6 ½ years in prison on Dec. 3, 2010, after pleading guilty to engaging in a racketeering conspiracy.

• Anthony Mabry, aka “Akim Slim,” 43, was sentenced to 14 years in prison on Oct. 20, 2010, after pleading guilty to engaging in a racketeering conspiracy.

• Delvin Ward, aka “D-Luv,” 37, was sentenced to 11 years in prison on Sept. 17, 2010, after pleading guilty to engaging in a racketeering conspiracy.

• Terrence Thomas, aka “Seven,” 40, was sentenced to 10 years in prison on June 16, 2010, after pleading guilty to engaging in a drug-trafficking conspiracy.

• Sebastian Wigg, aka “Rock,” 36, was sentenced to five years in prison on March 29, 2010, after pleading guilty to engaging in a drug-trafficking conspiracy.

• Fred Nix, aka “June P,” 36, was sentenced to five years in prison on March 29, 2010, after pleading guilty to engaging in a drug-trafficking conspiracy.

The case was investigated by the FBI’s Las Vegas Safe Streets Gang Task Force, which includes officers from the North Las Vegas Police Department and Las Vegas Metropolitan Police Department, and was prosecuted by Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Nicholas D. Dickinson and Phillip N. Smith Jr. of the District of Nevada.

The Justice Department announced today that, jointly with the city of Albuquerque, it is notifying the District Court of the selection of Dr. James R. Ginger—a nationally recognized expert on police reform and organizational change—as the independent monitor of the settlement agreement entered into by the department and the city of Albuquerque to reform the Albuquerque Police Department (APD).  Ginger and his team will be responsible for independently assessing the full implementation of the settlement agreement; reporting on the status of compliance to the court, the parties and the community; assisting the parties in resolving compliance challenges that may emerge; and providing technical guidance as needed to the APD.

Ginger has successfully overseen similar court-enforceable agreements aimed at increasing community trust and implementing sustainable police reforms.  He has first-hand experience in ensuring critical reform across the country and a proven record of timely implementing reform.  He was appointed as independent monitor over the first consent decree ever obtained by the Justice Department in Pittsburgh, Pennsylvania, as part of its enforcement of civil rights laws aimed at ensuring constitutional and effective policing.  He worked closely with the parties and the Pittsburgh Bureau of Police to implement comprehensive reforms, designed to address excessive use of force, false arrests, improper searches and seizures, failures in the disciplinary system and inadequate first-line supervision.  He was also appointed as monitor over the consent decree involving the New Jersey State Police and its efforts to eradicate discriminatory policing practices.  Ginger has been a leader in developing monitoring technologies and methodologies used in evaluating compliance with federal consent decrees.  Ginger has also worked with law enforcement agencies in New York, Ohio, Texas, Florida, Georgia, Alabama, Indiana and others.  He is currently the Chief Executive Officer of Public Management Resources Inc. (PMR) and is responsible for strategic planning, marketing, budgeting and management. 

Before founding PMR, Ginger worked as an Associate Professor of Criminal Justice, Executive Director for the Center of Justice Policy, Deputy Director of the Police Foundation and Director of the Southern Police Institute.  Ginger was credited with planning, developing and implementing a nationwide technical assistance and training project for the United States Bureau of Justice Assistance and developing nation-wide programs as part of the Southern Police Institute.

The monitoring team led by Ginger includes experts who have proven experience in assessing reform similar to those contained in the settlement agreement with Albuquerque.  The members of the monitoring team will include, among others, G. Patrick Gallagher, President of the Gallagher-Westfall Group; Dan Giaquinto, legal specialist and partner at Kern, Augustine, Conroy, & Schoppman, P.C.; Phil Coyne, Principal of Coyne Enterprise Solutions LLC; Mary Kealoha, Vice-President of the Gallagher-Westfall Group; Albert Preik, former Training Director for the Pittsburgh Bureau of Police; Peter Sarna, nationally recognized expert in police training and use of force; and Dave Torres, former Commandant of the New Jersey State Police training academy.

“We thank all of the individuals and firms that submitted letters of interest to serve as monitor and for their many accomplishments,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division.  “The decision to select the most qualified candidate from among the field was not an easy one, and we thank the community and other stakeholders for their input on this critical step of the implementation process.”

“Dr. Ginger’s proven success with police departments and criminal justice systems in the United States will assist in promoting compliance with critical structural and systemic reforms that are necessary to restoring public confidence and achieving effective and constitutional policing in Albuquerque,” said U.S. Attorney Damon Martinez for the District of New Mexico.  “We are pleased to have worked collaboratively with the City to select Dr. Ginger, who we believe is uniquely positioned to assess and report on the Albuquerque Police Department’s reform efforts.”

Ginger’s application materials can be found here.

A copy of the complaint, the final agreement can be found at www.justice.gov/crt/about/spl.

A former mayor of Dunkirk, New York, was indicted today for engaging in a scheme to defraud his mayoral campaign and supporters by stealing campaign contributions for his personal benefit, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney William J. Hochul Jr. of the Western District of New York.

Richard L. Frey, 83, of Dunkirk, New York, was charged today in a 13-count indictment with 12 counts of wire fraud and one count of making a false statement to the FBI. 

According to the indictment, from January 2003 through June 2012, Frey allegedly solicited and received several campaign contributions from area businesses and businesspeople and then, instead of depositing the donations into his campaign accounts, either cashed the checks for his personal use or deposited the checks into his personal bank accounts.  The indictment further alleges that Frey concealed the existence of these campaign contributions by not reporting or disclosing them on his campaign disclosure reports, as was required of local candidates for public office.  When asked about the scheme, Frey allegedly provided false information to the FBI.

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

The case is being investigated by the FBI’s Buffalo Field Office and the U.S. Housing and Urban Development Office of Inspector General.  The case is being prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John E. Rogowski of the Western District of New York.

Remarks As Prepared for Delivery

Thank you, Rob, for that kind introduction.  I am honored to be invited to speak on this panel with esteemed colleagues from the SEC, FCA, SFO, and the private sector.

As brief background, I am a Deputy Assistant Attorney General in the Department of Justice’s Criminal Division.  I oversee several sections, but most relevant to my remarks today is the Fraud Section, which has principal responsibility for the prosecution of complex securities and other white-collar matters for the Criminal Division.

I would like to speak briefly this morning about the Criminal Division’s white-collar criminal enforcement priorities now and in the coming year. 

We are focused on fighting corruption, cyber crime, and financial fraud, all of which present unique dangers to American citizens, as well as individuals overseas. 

We are prioritizing the fight against financial fraud of all stripes—particularly at publicly traded corporations and large financial institutions—and we will follow the evidence of fraud wherever it leads, be that within or outside U.S. borders.    

The prosecution of individuals—including corporate executives—for criminal wrongdoing continues to be a high priority for the department.  That is not to say that we will be looking to charge individuals to the exclusion of corporations. 

However, corporations do not act criminally, but for the actions of individuals.  And, the Criminal Division intends to prosecute those individuals, whether they are sitting on a sales desk or in a corporate suite. 

It is within this framework that we are also seeking to reshape the conversation about corporate cooperation to some extent. 

Corporations too often overlook a key consideration that the department has long expressed in our Principles of Federal Prosecution, which guide our prosecutorial decisions:  That is a corporation’s willingness to cooperate in the investigation of its culpable executives.

Of course, corporations—like individuals—are not required to cooperate.  A corporation may make a business or strategic decision not to cooperate.  However, if a corporation does elect to cooperate with the department, it should be mindful of the fact that the department does not view voluntary disclosure as true cooperation, if the company avoids identifying the individuals who are criminally responsible for the corporate misconduct. 

Even the identification of culpable individuals is not true cooperation, if the company intentionally fails to locate and provide facts and evidence at their disposal that implicate those individuals.  The Criminal Division will be looking long and hard at corporations who purport to cooperate, but fail to provide timely and full information about the criminal misconduct of their executives. 

In the past year, the Criminal Division has demonstrated its continued commitment to the prosecution of individual wrongdoers in the corporate context.  I will highlight a few examples.   

On the FCPA front, since 2009, we have convicted 50 individuals in FCPA and FCPA-related cases, and resolved criminal cases against 59 companies with penalties and forfeiture of almost $4 billion.  Within the last two years alone, we have charged, resolved by plea, or unsealed cases against 26 individuals, and 14 corporations have resolved FCPA violations with combined penalties and forfeiture of more than $1.6 billion. 

As just one example, the department unsealed charges against the former co-CEOs and general counsel of PetroTiger Ltd., a BVI oil and gas company with offices in New Jersey, for allegedly paying bribes to an official in Colombia in exchange for assistance in securing approval for an oil services contract worth $39 million. 

The general counsel and one of the CEOs already pleaded guilty to bribery and fraud charges, and the other former CEO is headed for trial. 

This case was brought to the attention of the department through voluntary disclosure by PetroTiger, which cooperated with the department’s investigation.  Notably, no charges of any kind were filed against PetroTiger.

An example on the flip side is the Alstom case, an FCPA investigation stemming from a widespread scheme involving tens of millions of dollars in bribes spanning the globe, including Indonesia, Saudi Arabia, Egypt, and the Bahamas. 

When the Criminal Division learned of the misconduct and launched an investigation, Alstom opted not to cooperate at the outset.  What ensued was an extensive multi-tool investigation involving recordings, interviews, subpoenas, MLAT requests, the use of cooperating witnesses, and more. 

As of today, four individual Alstom executives have been charged; three of them have pleaded guilty; Alstom’s consortium partner, Marubeni, was charged and pleaded guilty; and Alstom pleaded guilty and agreed to pay a record $772 million fine.  And that only accounts for the charges in the United States. 

As I have said, we want corporations to cooperate, and will provide appropriate incentives.  But, we will not rely exclusively upon corporate cooperation to make our cases against the individual wrongdoers. 

On the securities and commodities fraud front, protecting the integrity of our global financial markets continues to be a priority for the Criminal Division.  Our investigations into the manipulation of the LIBOR and FX at global financial institutions have received substantial publicity. 

So far, five banks have resolved the LIBOR investigation with the department, paying more than $1.2 billion to the department alone.  And 11 individuals have been charged, two of whom have pleaded guilty.  And again, that only accounts for the charges in the United States.  We expect both the LIBOR and FX investigations to continue to develop, both against the financial institutions themselves, as well as culpable individual executives.

To do these complex, international investigations, we are increasingly coordinating with domestic and foreign regulators and law enforcement counterparts, some of whom are on this panel today. 

In working with our foreign counterparts, we have developed growing sophistication and experience in a variety of areas, including analyzing foreign data privacy laws and corporations’ claims that overseas documents cannot be provided to investigators in the United States.

We are also building and relying upon on our relationships with our foreign counterparts to gather evidence, locate individuals overseas, conduct parallel investigations of similar conduct, and, when appropriate, coordinate the timing and scope of resolutions. 

Yes, just as we are coordinating our investigations, we are likewise willing to coordinate our resolutions, including accounting for the corporate monetary penalties paid in other jurisdictions when appropriate.

This is all to say that you should expect to see these meaningful, multinational investigations and prosecutions of corporations and individuals to continue.

With that, I am looking forward to hearing the remarks of my fellow panelists and discussing these important issues with you in more detail.

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Zachary T. Fardon for the Northern District of Illinois, Special Agent-in-Charge Robert J. Holley of the FBI’s Chicago Office and Special Agent-in-Charge James C. Lee of the Internal Revenue Service Criminal Investigation Division in Chicago announced today that a Chicago man was sentenced today to 15 months in federal prison for his role in a conspiracy to violate U.S. sanctions by agreeing to assist Zimbabwe President Robert Mugabe and others in an effort to lift economic sanctions against Zimbabwe.  Between late 2008 and early 2010, C. Gregory Turner, met multiple times in Africa with Zimbabwean government officials, including President Mugabe and Gideon Gono, governor of the Reserve Bank of Zimbabwe, who were individually subject to U.S. sanctions.

A November 2008 “consulting agreement” provided for total payment of $3.4 million in fees for Turner and his co-defendant, Prince Asiel Ben Israel, to engage in public relations, political consulting and lobbying efforts to have sanctions removed by meeting with and attempting to persuade federal and state government officials, including Illinois members of Congress and state legislators, to oppose the sanctions.

Turner, 72, also known as “Greg Turner,” of Chicago, acted out of greed, U.S. District Judge Elaine Bucklo said in imposing the sentence in Federal Court in Chicago.  The judge also said she did not believe Turner’s claim that his conduct was in the name of humanitarianism and helping the people of Zimbabwe.  Turner was ordered to begin serving his sentence on March 13, and he was placed on court supervision for a year after he is released from custody.

Turner was found guilty last October of violating the International Emergency Economic Powers Act (IEEPA), following a jury trial in U.S. District Court.  Turner was acquitted of one count each of conspiracy and acting as an agent in the United States of a foreign government without providing prior notification to the Attorney General.

“[Turner’s] motivation was his own financial enrichment.  He sought to parlay his close relationships with well-connected government officials to score a big payday,” the government argued in a sentencing memo.

Ben Israel, 73, of Chicago, was sentenced last August to seven months in prison after pleading guilty to violating the Foreign Agents Registration Act (FARA).

The sanctions against President Mugabe and other specially designated individuals in Zimbabwe ― for human rights abuses ― were initially imposed in 2003 by President George W. Bush and have been continued annually by President Obama, starting in March 2009.  President Mugabe and his ruling ZANU-PF party have governed Zimbabwe since its independence in 1980.  The sanctions neither bar travel to Zimbabwe nor prohibit public officials from meeting with specially designated nationals to discuss removing the sanctions, but individuals may not provide services on behalf of or for the benefit of specially designated nationals.

According to the evidence at trial, in early November 2008, Turner and Ben Israel began having discussions with Mugabe, Gono and other ZANU-PF leaders regarding the influence Turner and Ben Israel could wield to have the sanctions removed.  The defendants discussed with Mugabe, Gono and others their association with many public officials who purportedly had close connections with then President-Elect Obama.  Turner violated IEEPA by conspiring to engage in public relations, political consulting and lobbying efforts on behalf of President Mugabe and other Zimbabwe officials.  In early December 2008, Ben Israel’s U.S. bank blocked a wire transfer of $89,970 into his account from a Zimbabwe official affiliated with ZANU-PF, and Ben Israel later traveled to Africa and personally withdrew $90,000 from the bank account of that same Zimbabwe official.

Turner and Ben Israel arranged for trips by federal and state government officials to meet with President Mugabe and other Zimbabwean officials, including in November and December 2008, and January and December 2009; attempted to have Gono and other Zimbabwean officials speak at an issues forum in Washington, D.C., sponsored by a then U.S. Representative from California, and to assist those officials in obtaining visas to travel to the U.S. to attend the event; arranged for President Mugabe to meet with federal and state government officials in New York; lobbied a caucus of state legislators on behalf of Zimbabwean officials; and failed to apply to the Treasury Department for a license to engage in transactions and services on behalf of specially designated nationals.

In early December 2008, Turner and Ben Israel arranged for a delegation to travel to Zimbabwe.  After members of the delegation returned, President-Elect Obama’s transition team forwarded information about contact from a member of the delegation to the FBI based on its concerns that sanctions may have been violated.

The Justice Department’s Counterespionage Section assisted in the investigation.

The government was represented by Trial Attorney David Recker with the Justice Department’s Counterespionage Section and Assistant U.S. Attorneys Barry Jonas and Georgia Alexakis.

Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Preet Bharara for the Southern District of New York announced that Wesam El-Hanafi was sentenced today in Manhattan federal court to 15 years in prison for his extensive efforts to support al Qaeda – including financial support and facilitating surveillance of a New York City landmark for an attack – that spanned nearly three years.  El-Hanafi was arrested in the United Arab Emirates in April 2010 and transferred to United States custody.  On June 10, 2012, El-Hanafi pleaded guilty to one count of providing and attempting to provide material support and resources to al Qaeda, and one count of conspiring to provide material support and resources to al Qaeda, before U.S. District Judge Kimba M. Wood, who also imposed today’s sentence.

“Wesam El-Hanafi was deeply involved in supporting al Qaeda both financially and by facilitating surveillance of a New York landmark to bring an attack to our homeland in our city,” said U.S. Attorney Bharara.  “Today’s sentence is a fitting punishment for these crimes and we will continue, with our law enforcement partners, to pursue punishment for those who provide and conspire to provide material support for terrorists.”

According to various public filings and statements made during public proceedings, including today’s sentencing:

From 2007 through late 2009, El-Hanafi supported al Qaeda in a variety of ways.  In 2007, El-Hanafi and his co-defendant Sabirhan Hasanoff developed contact with individuals whom they understood to be affiliated with al Qaeda.  After a period of providing financial support to these individuals, in February 2008, El-Hanafi traveled to Yemen to meet with two terrorist operatives who El-Hanafi understood were members of al Qaeda.  While in Yemen, El-Hanafi swore an oath of allegiance, called bayat, to al Qaeda and delivered money and other items, including a laptop computer, to the terrorist operatives.  El-Hanafi also taught the terrorist operatives in Yemen covert Internet communications techniques and supplied them with encryption tools that would facilitate communicating without detection.  El-Hanafi and Hasanoff additionally sent other items, including remote-controlled devices capable of use in an explosives attack, to El-Hanafi’s terrorist contacts in Yemen.

El-Hanafi and Hasanoff together funneled approximately $67,000 to terrorist operatives overseas.  El-Hanafi and Hasanoff collected some of this money from a third individual who resided in the United States.  During this time, both El-Hanafi and Hasanoff used aliases to disguise the source of their money when making cash donations to their terrorist contacts.

Moreover, at the direction of his Yemen-based terrorist contacts, El-Hanafi assigned Hasanoff to perform surveillance of locations in the United States, including the New York Stock Exchange in Manhattan, as potential targets of a terrorist attack by al Qaeda.  El-Hanafi received Hasanoff’s report of his surveillance of the New York Stock Exchange, and sent that report to the terrorist operatives in Yemen.

El-Hanafi and Hasanoff also undertook efforts to enable their own travel to engage in jihad in Somalia, Afghanistan, and Iraq.  Their al Qaeda contacts would not facilitate El-Hanafi’s and Hasanoff’s travel for jihad, however, because al Qaeda viewed the two men as more valuable for potential attacks on U.S. soil.

*                *                *

In addition to his prison term, El-Hanafi, 39, of Brooklyn, New York, was sentenced to 3 years of supervised release.  El-Hanafi was also ordered to pay a $200 special assessment fee and forfeiture in the amount of $70,000.

Hasanoff pleaded guilty on June 4, 2012, to one count of providing and attempting to provide material support and resources to al Qaeda, and one count of conspiracy to provide material support and resources to al Qaeda.  On Sept. 30, 2013, Hasanoff was sentenced to a total term of 18 years in prison, to be followed by a three-year term of supervised release, and was ordered to pay forfeiture in the amount of $70,000.

Assistant Attorney General Carlin is grateful for the outstanding investigative work of the FBI’s New York-based Joint Terrorism Task Force (JTTF) – which principally consists of special agents of the Federal Bureau of Investigation and detectives of the New York City Police Department.  Assistant Attorney General Carlin would also like to thank the Department of Justice’s National Security Division and Office of International Affairs, the Kansas City-based JTTF, and the United States Attorney’s Office for the Western District of Missouri for their extraordinary assistance in this matter.

This case is being handled by the Office’s Terrorism and International Narcotics Unit.  Assistant U.S. Attorneys John P. Cronan, Aimee Hector, Michael Lockard, and Brendan R. McGuire are in charge of the prosecution, with assistance from Trial Attorney Joseph Kaster of the Counterterrorism Section in the Justice Department’s National Security Division.

A federal court in Philadelphia has permanently barred a woman and her business from preparing tax returns for others and from operating a tax return preparation business, the Justice Department announced today. 

The injunction order, which was signed by U.S. District Judge Lawrence F. Stengel, also requires Denise Almanza to close her existing tax preparation business, Denise’s Centro De Servicios P.C.

The United States brought the civil injunction suit in September 2014, alleging that Almanza inappropriately reduced her customers’ income or wrongfully claimed tax credits on their returns, which caused the customers to receive tax refunds or increased refund amounts to which they were not entitled. 

Specifically, the suit alleged that Almanza improperly claimed the additional child tax credit on customers’ income tax returns, which allowed her customers to receive, on average, over $2,900 in improper benefits per tax return.  Almanza and her business have prepared more than 14,000 federal tax returns since 2010, according to the complaint.  In total, the complaint alleged that Almanza’s activities over the last four years have potentially cost the U.S. Treasury millions of dollars in lost tax revenue.

Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2014.  The IRS has some tips on their website for choosing a tax preparer.  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 website.  An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page.

A federal court has barred a Rapid City, South Dakota, company and its president from further manufacturing and distributing its laser devices, which they marketed to treat a variety of medical conditions and diseases, the Justice Department announced today.

U.S. District Court Chief Judge Jeffrey L. Viken for the District of South Dakota entered the preliminary injunction on Wednesday against Robert “Larry” Lytle and his businesses, QLasers PMA, 2035 PMA, and 2035 INC., in an action filed by the Justice Department to enforce provisions of the federal Food, Drug, and Cosmetic Act (FDCA).  The court’s order prohibiting the manufacture and distribution of the QLaser devices also applies to Lytle’s business affiliates and franchisees.

Last October, the Justice Department and the U.S. Attorney’s Office for the District of South Dakota filed a civil complaint for injunctive relief against Lytle and his businesses, alleging that they have been violating the FDCA by nationally marketing Lytle’s laser devices for the treatment of more than 200 different diseases and medical disorders without clearance or approval from the U.S. Food and Drug Administration (FDA).  The preliminary injunction entered on Wednesday takes effect immediately and will remain in force while the government’s case seeking a permanent injunction proceeds to final judgment.

Judge Viken found, based on what he called an “extensive and well developed record,” that Lytle and his various businesses “have shown no intent to discontinue their activities and voluntarily comply with the FDCA.  “The injunction bars the defendants from continuing to market and distribute any medical devices until they receive written permission from the FDA to do so.

Lytle, whom the court noted was a dentist in Rapid City until his license to practice dentistry was permanently revoked by the South Dakota Board of Dentistry in 1998, markets the devices by soliciting purchasers to join his “private membership associations” or “PMAs” before purchasing his lasers.  As the court explained, however, “Hiding behind a curtain of private membership associations, 2035 PMA and QLaser PMA, does not shield Mr. Lytle from the authority of the FDCA or the jurisdiction of the court.”

“With the entry of this preliminary injunction, we have taken another step toward ensuring that only medical devices that have been shown to be safe and effective are placed in the hands of the American consumer,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division.  “Everyone who deals in products that affect people’s health must comply with the FDCA.”

According to court documents filed in the case, the defendants have been distributing the QLaser devices with labeling that contains false and misleading claims, touting their use in treating such serious conditions as cancer, HIV/AIDS, venereal disease and diabetes.  Although two of his laser devices were FDA-cleared for providing temporary relief of pain associated with osteoarthritis of the hand, none of the devices has been cleared or approved to treat any other medical conditions.  The government alleges that not only are there no published clinical studies to support the use of Lytle’s lasers to treat other serious medical conditions, but that in fact, using the devices according to the device’s labeling could be dangerous to health.  The court’s order finds that the United States is substantially likely to succeed on the merits on this claim and the others within the government’s complaint.

“The preliminary injunction granted should provide consumers a renewed sense of confidence,” said U.S. Attorney Brendan V. Johnson for the District of South Dakota.  “This action is crucial to prevent the company from continuing to operate on the periphery of the law, and potentially jeopardize the health and safety of its consumers.”

The FDA referred this enforcement action to the Department of Justice.  The government’s case is being litigated by Trial Attorney Ross S. Goldstein of the Civil Division’s Consumer Protection Branch, with assistance from the U.S. Attorney’s Office for the District of South Dakota and the FDA’s Office of Chief Counsel.

Three New York residents were indicted in the Eastern District of New York for defrauding the U.S. government by filing false claims for millions in false tax refunds, the Justice Department and Internal Revenue Service (IRS) announced today. 

Charged in a 20-count indictment are Rodney Chestnut, of Middle Island, New York, a retired New York City Department of Corrections officer; Clive Henry, a former IRS employee in the business of preparing tax returns and Nafeesah Hines, a former U.S. Food and Drug Administration (FDA) employee, both of  Jamaica, New York.  Chestnut and Henry were arrested on Jan. 15, and appeared in federal court in Brooklyn, New York. 

The defendants are each charged with one count of conspiracy to defraud the United States, 11 counts of assisting preparation of false returns and four counts of filing false tax returns.  Hines and Chestnut are each charged with one additional count of filing false tax returns.  If convicted, the defendants each face a statutory maximum sentence of five years in prison for conspiracy and a statutory maximum sentence of three years in prison for each false return charged against them.  All of the defendants are also subject to fines and mandatory restitution, if convicted.

According to the indictment, between 2008 and 2012, Hines, Chestnut and Henry recruited clients to a scheme using fake IRS Forms 1099-OID (Original Issue Discount) claiming fictitious tax withholdings and were attached to tax returns that falsely claimed refunds of taxes that were never paid to the IRS.  Hines used an electronic system to transmit the false Forms 1099-OID to the IRS.  The false refund claims listed in the indictment total more than $3.4 million. 

According to the indictment, the defendants collected fees based on a percentage the false refunds that they claimed as part of the scheme.  The indictment also charges the defendants with filing false income tax returns for themselves pursuant to the scheme. 

In 2013, a federal court permanently barred Hines and Chestnut from promoting an alleged tax fraud scheme involving thousands of false tax returns and from preparing tax returns for anyone other than themselves.

The case was investigated by special agents of IRS-Criminal Investigation.  Trial attorneys Mark Kotila, Jeffrey McLellan and Erin Pulice of the Justice Department’s Tax Division are prosecuting the case.  An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.         

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

The commonwealth of Pennsylvania will pay $48.8 million to resolve the federal government’s claims that it provided benefits to ineligible aliens in violation of federal law, the Justice Department announced today.  The benefits at issue were provided under three programs: Medicaid, Temporary Assistance for Needy Families (TANF) and the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps.

“The Department of Justice will continue to ensure that everyone, including the states, follows the law, but also recognizes the importance of these programs administered by the state that are essential for lower income individuals,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division.  “This settlement demonstrates our commitment to protect taxpayer funds and ensure they are used for their intended purposes.” 

Under the Personal Responsibility Work Opportunity Act, enacted in 1996, only documented aliens who meet certain low-income requirements and who have been in the country for more than five years may receive non-emergency Medicaid, TANF or SNAP benefits.  The law also requires states to verify recipients’ eligibility before providing these means-tested benefits.  The United States alleged that, between 2004 and 2010, the commonwealth of Pennsylvania provided Medicaid, TANF and SNAP benefits to ineligible aliens in violation of these restrictions.  

“The staff of the civil division in our office has worked closely and diligently with our sister federal agencies, the Pennsylvania Department of Human Services and the Governor’s office to make needed corrections to the operation of programs that are vital to low income families,” said U.S. Attorney Peter J. Smith for the Middle District of Pennsylvania.  “At the same time, after lengthy negotiations, a fair and reasonable settlement has been achieved in the best interest of Pennsylvania tax payers.”

“Our agency will continue to work hard to ensure taxpayer-funded benefits are provided only to those eligible to receive them,” said Special Agent in Charge Nick DiGiulio for the Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Philadelphia Regional Office.

“We are pleased that this issue has been resolved,” said Administrator Audrey Rowe of the U.S. Department of Agriculture (USDA)’s Food and Nutrition Service. “We will continue to work with Pennsylvania to ensure that the SNAP program is administered appropriately to benefit only those who are eligible.”

Acting Assistant Attorney General Branda thanked HHS-OIG, USDA’s Office of Inspector General and Food and Nutrition Service, the U.S. Attorney’s Office for the Middle District of Pennsylvania and the Civil Division’s Commercial Litigation Branch, for the collaboration that resulted in the settlement. 

The claims settled by this agreement are allegations only, and there has been no determination of liability.  

As a result of a lawsuit filed by the United States, a federal court in California has issued an injunction shutting down Health One Pharmaceuticals Inc., a City of Industry, California, based manufacturer of dietary supplements and unapproved new drugs.  The firm and its president, Richard S. Yeh, agreed to shut down and resolve the lawsuit as part of a consent decree.  The Justice Department filed the injunction action in the Central District of California at the request of the U.S. Food and Drug Administration (FDA). 

The consent decree forbids the company from operating unless and until it takes a number of steps to improve its compliance with federal law.  The defendants have represented to the court that they have already ceased operations.

“Protecting the health of American consumers is some of the most important work we do,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division.  “We have an unwavering commitment to ensuring that the dietary supplements in this country are safe and have been manufactured in accordance with federal law.”          

Based on the results of FDA inspections, the complaint alleged that the defendants violated the Federal Food, Drug and Cosmetic Act by delivering, or causing to be delivered for introduction into interstate commerce, dietary supplements that have been prepared, packed or held under conditions that do not meet current good manufacturing practice regulations.  Among other things, the complaint alleged that the defendants failed to meet current good manufacturing practices for dietary supplements by failing to conduct at least one appropriate test or examination to verify the identity of every dietary ingredient prior to using the ingredient.  Furthermore, the complaint alleged that the defendants’ dietary supplements were misbranded because their labels do not include all the information required by federal law.

The complaint further alleged that some of the defendants’ products were unapproved new drugs—and therefore cannot be lawfully distributed under federal law—because they were articles intended for use in the cure, mitigation, treatment or prevention of disease and, among other things, are not generally recognized as safe and effective for their intended uses and were not the subjects of new drug applications approved by FDA.  Furthermore, the complaint alleged that these drugs were misbranded because it is impossible to provide “adequate directions for use” for an unapproved new drug. 

The FDA referred this matter to the Department of Justice.  The Civil Division’s Consumer Protection Branch, together with the U.S. Attorney’s Office for the Central District of California, filed this case on behalf of the United States. 

The claims alleged in the complaint are allegations only and there has been no determination of liability.

Today, Attorney General Eric Holder issued an order setting forth a new policy prohibiting federal agency forfeiture, or “adoptions,” of assets seized by state and local law enforcement agencies, with a limited public safety exception.  A federally adopted forfeiture – or “adoption” for short – occurs when a state or local law enforcement agency seizes property pursuant to state law and requests that a federal agency take the seized asset and forfeit it under federal law.  The U.S. Department of the Treasury, which has its own forfeiture program, is issuing a policy consistent with the Attorney General’s order and that policy will apply to all participants of the Treasury forfeiture program, administered by the Treasury Executive Office for Asset Forfeiture. 

“With this new policy, effective immediately, the Justice Department is taking an important step to prohibit federal agency adoptions of state and local seizures, except for public safety reasons,” said Attorney General Holder.  “This is the first step in a comprehensive review that we have launched of the federal asset forfeiture program.  Asset forfeiture remains a critical law enforcement tool when used appropriately – providing unique means to go after criminal and even terrorist organizations.  This new policy will ensure that these authorities can continue to be used to take the profit out of crime and return assets to victims, while safeguarding civil liberties.”

The Attorney General ordered that federal agency adoption of property seized by state or local law enforcement under state law be prohibited, except for property that directly relates to public safety concerns, including firearms, ammunition, explosives and property associated with child pornography.  The prohibition on federal agency adoption includes, but is not limited to, seizures by state or local law enforcement of vehicles, valuables, cash and other monetary instruments.  This order is effective immediately and applies to all Justice Department attorneys and components, and all participants in the Department of Justice Asset Forfeiture Program.  The new policy will ensure that adoption is employed only to protect public safety, and does not extend to seizures where state and local jurisdictions can more appropriately act under their own laws.

Both the Justice and Treasury Departments regularly review their asset forfeiture programs to ensure that federal asset forfeiture authorities are used carefully and effectively to take the profit out of crime, combat organized crime groups, and enable victim compensation, while ensuring that laws are followed, civil liberties are protected, and our constitutional system is strengthened.  Since 2000, the Justice Department has returned approximately $4 billion in forfeited funds to victims of federal crime.  Both departments will be part of the Law Enforcement Equipment Working Group, which will provide recommendations to the President regarding actions that can be taken to improve programs, like asset forfeiture, that help local law enforcement obtain equipment.  

The Justice Department’s policy permitting federal agencies to adopt seizures dates from the inception of the Asset Forfeiture Program in the 1980s.  The Treasury Department’s adoption policy has been part of its Asset Forfeiture Program since its inception in 1993.  At the time that these policies were implemented, few states had forfeiture statutes analogous to the federal asset forfeiture laws.  Consequently, when state and local law enforcement agencies seized criminal proceeds and property used to commit crimes, they often lacked the legal authority to forfeit the seized items.  Turning seized assets over to federal law enforcement agencies for adoption was a way to keep those assets from being returned to criminals.  Today, however, every state has either criminal or civil forfeiture laws, making the federal adoption process less necessary.  Indeed, adoptions currently constitute a very small slice of the federal asset forfeiture program.  Over the last six years, adoptions accounted for roughly three percent of the value of forfeitures in the Department of Justice Asset Forfeiture Program. 

The new policy applies only to adoptions, not to seizures resulting from joint operations involving both federal and state authorities, or to seizures pursuant to warrants issued by federal courts.  The policy does not limit the ability of state and local agencies to pursue the forfeiture of assets pursuant to their respective state laws.  Law enforcement agencies working on joint task forces are required to follow the 2015 Guidance for Federal Law Enforcement Agencies Regarding the Use of Race, Ethnicity, Gender, National Origin, Religion, Sexual Orientation or Gender Identity.

Attorney General Eric Holder released the following statement after the U.S. Supreme Court agreed to hear four cases on same-sex marriage equality:

“After the Justice Department's decision not to defend the constitutionality of Section 3 of the Defense of Marriage Act, the Supreme Court sent a powerful message that Americans in same-sex marriages are entitled to equal protection and equal treatment under the law.  This landmark decision marked a historic step toward equality for all American families.

“The Supreme Court has announced that it will soon hear several cases raising core questions concerning the constitutionality of same-sex marriages.  As these cases proceed, the Department of Justice will remain committed to ensuring that the benefits of marriage are available as broadly as possible.  And we will keep striving to secure equal treatment for all members of society—regardless of sexual orientation.

“As such, we expect to file a ‘friend of the court’ brief in these cases that will urge the Supreme Court to make marriage equality a reality for all Americans.  It is time for our nation to take another critical step forward to ensure the fundamental equality of all Americans—no matter who they are, where they come from, or whom they love.”

The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, the department has reached a settlement with Genesis Healthcare System (Genesis) to resolve claims that Genesis discriminated against a woman with HIV in violation of the Americans with Disabilities Act (ADA).  Genesis operates a healthcare system that includes a hospital, a network of more than 300 physicians, and multiple outpatient health care centers throughout southeastern Ohio. 

Title III of the ADA prohibits public accommodations, such as healthcare providers, from discriminating against people with disabilities, including HIV.  Following an investigation, the department found that Genesis discriminated against a woman with HIV when one of its primary care physicians refused to accept her as a new patient because of her HIV.  Genesis refused to accept her as a patient despite the fact that she was only seeking a general practitioner for medical care unrelated to HIV.  As a result, the woman had to seek medical treatment at the local emergency room for non-emergent health issues.  The department’s investigation revealed that it was this doctor’s practice to refer any patients with HIV seeking a primary care physician to an HIV specialist.

“Exclusion of patients with HIV creates unfair and illegal barriers to medical care for people with HIV,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division.  “Under the law, healthcare providers cannot deny care or refer a patient to a specialist unless the decision is based on current medical knowledge about the particular patient and condition, not on stereotypes about a disability.  The ADA prohibits these types of discriminatory barriers, and the Justice Department is committed to tearing them down.”

Under the settlement, Genesis Healthcare System must pay $25,000 to the victim of discrimination, and $9,000 as a civil penalty.  In addition, it must train its staff on the ADA, develop and implement a non-discrimination policy, and report to the department every time a person with HIV (or who is suspected of having HIV) is denied or discharged as a patient, with a written justification for the decision.

This settlement agreement is part of the department’s Barrier-Free Health Care Initiative, a partnership of the Civil Rights Division and U.S. Attorney’s offices across the nation to target enforcement efforts on a critical area for individuals with disabilities: access to health care.  For more information on the Barrier-Free Health Care Initiative visit http://www.ada.gov/usao-agreements.htm.

For more information on the ADA, HIV discrimination, and this settlement, visit www.ada.gov/aids.  Those interested in finding out more about the obligations of healthcare providers under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov.  ADA complaints may be filed by email to [email protected].

The Department of Justice announced today that it has entered into a consent decree with Clark County, Nevada, that, if approved by the United States District Court for the District of Nevada, will resolve the department’s lawsuit filed under Title VII of the Civil Rights Act of 1964 regarding compensation discrimination and retaliation.  In its lawsuit, the department alleged that the county paid Therese Scupi, its Director of Diversity, significantly less than white and male county employees whose duties were substantially similar to hers.  The complaint also alleged that the county subjected Scupi to retaliation when she complained of disparities in her pay that she believed were based on her race and sex.   

Under the terms of the consent decree, the county has agreed to pay Scupi approximately $179,000 in back pay, compensatory damages, and pension contributions.  In accordance with the decree, Clark County has also agreed to maintain employment policies, practices and procedures that comply with federal discrimination laws and to conduct training designed to prevent against and correct both discrimination in compensation and retaliation. 

This lawsuit resulted from a joint project with the Equal Employment Opportunity Commission (EEOC) designed to ensure vigorous enforcement of Title VII against state and local governmental employers by enhancing cooperation between the EEOC and the Civil Rights Division.

“Title VII protects employees who have the courage to challenge discriminatory pay compensation practices without fear of retaliation from their employers,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division.  “We are pleased to have been able to work cooperatively with the Equal Employment Opportunity Commission to achieve a broad range of injunctive and monetary relief in this important case.”

“Pay inequity remains as a hurdle for working women,” said District Director Rosa Viramontes of the EEOC’s Los Angeles District, which includes southern Nevada in its jurisdiction.  “We were pleased that our partnership with the Department of Justice on this case yielded positive results and will lead to a more equitable working environment going forward.”

Scupi originally filed a charge of race and sex discrimination and retaliation with the EEOC, a federal agency that enforces laws against discrimination in employment.  The EEOC’s Las Vegas local office investigated the matter, determined that there was reasonable cause to believe that discrimination and retaliation had occurred and referred the matter to the department. 

The United States was represented by Civil Rights Division attorneys Antoinette Barksdale and Robert Galbreath.

Title VII prohibits discrimination in employment on the basis of gender, race, color, national origin or religion, and prohibits retaliation against an employee who opposes an unlawful employment practice, or because the employee has made a charge or participated in an investigation, proceeding or hearing under the act.  The enforcement of Title VII and other federal employment discrimination laws is a top priority of the Justice Department’s Civil Rights Division.  Additional information about the Civil Rights Division and its work is available on its website at www.justice.gov/crt. 

The EEOC enforces federal laws prohibiting employment discrimination.  Further information about the EEOC is available on its website at www.eeoc.gov.

The Justice Department announced today that it reached a settlement agreement with U.S. Service Industries (USSI), a janitorial company headquartered in Bethesda, Maryland, and operating in Florida, Maryland, Virginia and Washington, D.C.  The agreement resolves allegations that USSI violated the Immigration and Nationality Act (INA) by discriminating against work-authorized individuals who are not U.S. citizens.    

The Justice Department’s investigation found that USSI required workers who are not U.S. citizens to produce documents issued by the Department of Homeland Security as a condition of employment, but it did not make similar demands of U.S. citizens.  The INA’s anti-discrimination provision prohibits employers from placing additional documentary burdens on workers during the employment eligibility verification process based on their citizenship status. 

Under the settlement agreement, USSI will pay $132,000 in civil penalties to the United States; undergo training on the anti-discrimination provision of the INA; establish a $50,000 back pay fund to compensate any workers who may have lost wages; revise its employment eligibility verification policies; and be subject to monitoring of its employment eligibility verification practices for two years.

“Employers cannot create unlawful discriminatory obstacles for immigrants,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division.  “It is important that large employers review their employment eligibility verification practices at all of their offices to make sure they are in compliance with the law.”  

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

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

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

The Justice Department announced today that First United Bank, of Dimmitt, Texas, will maintain uniform pricing policies, conduct employee training and pay $140,000 as part of a settlement to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of national origin.

The settlement, which is subject to court approval, was filed in conjunction with the Justice Department’s complaint in the U.S. District Court for the Northern District of Texas.  The complaint alleges that First United Bank charged higher prices on unsecured consumer loans made to Hispanic borrowers in violation of the Equal Credit Opportunity Act (ECOA).

“The Civil Rights Division is committed to ensuring that lenders price all types of loans based on appropriate credit factors and not based on prohibited factors such as national origin,” said Acting Assistant Attorney General Vanita Gupta for the Justice Department’s Civil Rights Division.  “We commend First United Bank for implementing a system of loan pricing that provides objective guidance to the bank’s employees.”

The lawsuit originated from a referral by the Federal Deposit Insurance Corporation (FDIC) to the Civil Rights Division.  First United Bank is a member of the FDIC.

Under the settlement, First United Bank will pay a total of $140,000 to compensate hundreds of victims of discrimination, monitor its loans for potential disparities based on national origin and provide equal credit opportunity training to its employees.  First United Bank will also maintain its revised pricing policies to ensure that the price charged for its loans is set in a non-discriminatory manner consistent with the requirements of ECOA.  The agreement also prohibits the bank from discriminating on the basis of national origin in any aspect of a credit transaction.

“This district is committed to ensuring banks and other lending institutions do not discriminate against borrowers on the basis of national origin,” said Acting U.S. Attorney John Parker for the Northern District of Texas.  “I join the Acting Assistant Attorney General in recognizing First United Bank’s cooperation in accomplishing this settlement that will compensate hundreds of victims of this discrimination.”

The Justice Department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Rights Division.  Since the Fair Lending Unit was established in February 2010, it has filed or resolved 36 lending matters under the Fair Housing Act, ECOA and the Servicemembers Civil Relief Act.  The settlements in these matters provide for over $1.2 billion in monetary relief for impacted communities and individual borrowers.  The Attorney General’s annual reports to Congress subject to ECOA highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publication.

The Civil Rights Division and the FDIC are members of the Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.  For more information on the task force, visit www.StopFraud.gov .

A copy of the complaint and proposed order, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department website at www.justice.gov/fairhousing.

The former Executive Director of International Adoption Guides Inc. (IAG), an adoption agency, pleaded guilty yesterday to making false and fraudulent statements to the Council on Accreditation with respect to IAG’s accreditation.  

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Bill Nettles of the District of South Carolina made the announcement.

Mary Mooney, 57, of Belmont, North Carolina, admitted as part of her guilty plea that she made false statements to the Council on Accreditation (COA), which granted IAG accreditation to provide adoption services in certain countries.  IAG marketed itself as a COA-accredited adoption services provider and numerous clients relied on IAG’s accreditation to confirm that IAG’s adoption services were ethical and in compliance with U.S. and foreign law.  Mooney admitted that in support of IAG’s application for accreditation she made several false representations, including: falsely stating that IAG was in substantial compliance with the relevant regulations; intentionally failing to list her co-defendant, Alisa Bivens, as one of IAG’s employees providing adoption services; and intentionally failing to disclose that James Harding, another co-defendant, was the functional director and head of the company.  All of these false and fraudulent statements were material to COA’s decision to accredit IAG to conduct intercountry adoptions for purposes of the Hague Convention on the Protection of Children and Cooperation in Respect of Intercountry Adoptions.  Without that accreditation, IAG would not have been legally permitted to facilitate intercountry adoptions from any country that was a party to that convention and numerous families would have never retained IAG to provide adoption services.

Mooney is the third defendant to plead guilty as a result of this investigation.  Mooney pleaded guilty before Senior U.S. District Court Judge Sol Blatt Jr. of the District of South Carolina.  A sentencing hearing will be scheduled at a later date.

This ongoing investigation is being conducted by the Bureau of Diplomatic Security.  The department appreciates the assistance of the Office of Children’s Issues at the U.S. Department of State.  The case is being prosecuted by Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamie Lea Schoen of the District of South Carolina.

WASHINGTON – El Departamento de Justicia anunció hoy que llegó a un acuerdo con U.S. Service Industries (USSI), una empresa de limpieza, con base de operaciones en Bethesda, Maryland, y operando en la Florida, Maryland, Virginia, y Washington, D.C.  El acuerdo resuelve la alegacion del departamento que USSI violó la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés) cuando discriminó en contra de individuos autorizados a trabajar quienes no son ciudadanos estadounidenses. 

La investigación del Departamento de Justicia encontró que USSI requiría que sus trabajadores que no eran ciudadanos de los Estados Unidos, produjeran documentos emitidos por el Departamento de Seguridad Nacional como una condición de su empleo, mientras que a los trabajadores ciudadanos estadounidenses no se les hacía demandas parecidas. La provisión antidiscriminatoria de la INA prohíbe que los empleadores impongan cargas adicionales de documentos a sus empleados basado en su estatus inmigratorio durante el proceso de verificación de elegibilidad de empleo.

Bajo el acuerdo , USSI le pagará $132,000 en multas civiles a los Estados Unidos; se someterá a un adiestramiento proporcionado por el departamento sobre la provisión antidiscriminatoria de la INA; establecerá un fondo de $50,000 para compensar a los trabajadores que hayan recibido menos sueldo; revisará sus pólizas de verificación de elegibilidad de empleo; y será sujeto a monitoreo de sus prácticas de verificación de elegibilidad de empleo por dos años.

“Empleadores no pueden crear obstáculos ilegales y discriminatorios para inmigrantes,”  dijo la Subprocuradora General Interina para la División de Derechos Civiles, Vanita Gupta. “Es importante que los empleadores grandes revisen sus prácticas de verificación de elegibilidad de empleo en todas sus oficinas para asegurarse que estén en cumplimiento con la ley.”

La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a la Inmigración (OSC por sus siglas en inglés) es la oficina responsable por hacer cumplir con la provisión anti-discriminatoria de la INA. La ley prohíbe, entre otras cosas, discriminación basada en estatus de ciudadanía o en origen nacional en la contratación, el despido, o el reclutamiento o la referencia por comisión, las prácticas injustas de documentación, y represalias e intimidación.

Para obtener más información acerca de las protecciones contra la discriminación en el empleo según las leyes de inmigración, o para registrarse para un seminario sin costo ofrecido a través del internet, llame a la línea directa de la OSC para trabajadores al 1-800-255-7688 1-800-237-2515, TTY (para personas con discapacidades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); suscríbase a un seminario por internet gratis en www.justice.gov/crt/about/osc/webinars.php, envíe un correo electrónico a [email protected]; o visite el sitio web de la OSC en www.justice.gov/crt/about/osc.

Solicitantes o trabajadores que creen que fueron sometidos a: (1) requisitos diferentes de documentación por causa de su estatus de ciudadanía, estatus migratorio o su origen nacional; o (2) discriminación por causa de su estatus de ciudadanía, estatus migratorio o el origen nacional en la contratación, el despido o el reclutamiento o referencia por comisión, deben comunicarse a la línea de trabajadores de la OSC para obtener ayuda.

WASHINGTON – El Departamento de Justicia anunció hoy que First United Bank de Dimmitt, Texas, mantendrá políticas de precios uniformes, brindará capacitación a empleados y pagará 140,000 dólares como parte de un acuerdo conciliatorio en resolución de alegaciones que adoptó un patrón o práctica de discriminación por razón de origen nacional.

El acuerdo conciliatorio, que está sujeto a aprobación del tribunal, fue presentado junto con la demanda del Departamento de Justicia en el Tribunal Federal de Distrito del Distrito Norte de Texas.  La demanda alega que First United Bank cobraba precios más altos en préstamos de consumidor sin garantía otorgados a prestatarios hispanos, lo que viola la Ley de Igualdad de Oportunidades de Crédito [Equal Credit Opportunity Act (ECOA)].

“La División de Derechos Civiles se compromete a garantizar que los precios establecidos por los prestamistas para todos los tipos de préstamos se basen en factores de crédito adecuados y no en factores prohibidos, tales como el origen nacional”, dijo la Fiscal General Auxiliar Interina Vanita Gupta de la División de Derechos Civiles del Departamento de Justicia.  “Felicitamos a First United Bank por implementar un sistema de establecimientos de precios de préstamos que brinda orientación objetiva a los empleados del banco”.

La demanda se originó de una remisión a la División de Derechos Civiles del Departamento de Justicia por parte de la Federal Deposit Insurance Corporation (FDIC).  First United Bank es un miembro de la FDIC.

Según el acuerdo conciliatorio, First United Bank pagará un total de 140,000 dólares para compensar a cientos de víctimas de discriminación, monitoreará sus préstamos con respecto a potenciales disparidades basadas en el origen nacional y brindará capacitación a sus empleados sobre oportunidades iguales de crédito.  First United Bank también mantendrá sus políticas de establecimientos de precios revisadas para garantizar que los precios cobrados por sus préstamos se establezcan de manera no discriminatoria compatible con las exigencias de ECOA.  El acuerdo también le prohíbe al banco discriminar por origen nacional en cualquier aspecto de una transacción de crédito.

“Este distrito se compromete a asegurar que bancos y otras instituciones de préstamo no discriminen contra prestatarios por su origen nacional”, dijo el Fiscal Federal Interino John Parker del Distrito Norte de Texas.  “Acompaño a la Fiscal Federal Auxiliar Interina en reconocer la cooperación de First United Bank en cumplir con este acuerdo conciliatorio que compensará a cientos de víctimas de esta discriminación.”

La Unidad de Préstamos Justos de la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles del Departamento de Justicia es responsable de hacer valer las leyes de otorgamiento justo de préstamos.  Desde su fundación en febrero de 2010, la Unidad de Préstamos Justos ha iniciado o resuelto 36 casos asociados a préstamos bajo la Ley de Vivienda Justa [Fair Housing Act], ECOA y la Ley de Alivio Civil para los Miembros de las Fuerzas Armadas [Servicemembers Civil Relief Act].  Los acuerdos conciliatorios logrados en estos casos consistieron en más de 1.2 miles de millones de dólares en reparación monetaria para comunidades y prestatarios individuales afectados.  Los informes anuales del Secretario de Justicia de EE.UU. al Congreso bajo ECOA destacan los logros del Departamento en el otorgamiento de préstamos justos y están disponibles en www.justice.gov/crt/publication.

La División de Derechos Civiles y la FDIC son miembros de la Fuerza de Tarea de Coacción contra el Fraude Financiero.  El Presidente Obama estableció la Fuerza de Tarea de Coacción contra el Fraude Financiero interagencial para llevar a cabo una iniciativa enérgica, coordinada y proactiva para investigar y enjuiciar los delitos financieros.  La fuerza de tarea incluye a representantes de una amplia gama de dependencias federales, autoridades reguladoras, inspectores generales y miembros de las fuerzas del orden público estatales y locales, quienes, trabajando juntos, aprovechan un poderoso espectro de recursos de coacción penal y civil.  La fuerza de tarea está trabajando para mejorar la labor en todo el poder ejecutivo federal, y con asociados estatales y locales, para investigar y enjuiciar los delitos financieros importantes, asegurar un castigo justo y eficaz para quienes cometan delitos financieros, combatir la discriminación en los mercados de préstamos y financieros, y recuperar fondos para las víctimas de delitos financieros.  Para obtener más información sobre la fuerza de tarea, visite www.StopFraud.gov.

Para obtener una copia de la demanda y la orden propuesta, así como también información adicional sobre la labor del Departamento de Justicia para hacer valer las leyes de otorgamiento justo de préstamos, visite el portal del Departamento de Justicia en www.justice.gov/fairhousing.

 

The owner and chief executive of Glenn Defense Marine Asia (GDMA), a company providing services to the U.S. Navy, pleaded guilty to bribery and fraud charges in federal court today, admitting that he presided over a decade-long conspiracy involving “scores” of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and gifts.  GDMA also pleaded guilty today, as did a Navy captain who pleaded guilty for accepting bribes in exchange for using his position to benefit GDMA.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Deputy Inspector General for Investigations James B. Burch of the Defense Criminal Investigative Service (DCIS), Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) and Director Anita Bales of the Defense Contract Audit Agency (DCAA) made the announcement.

“Today’s guilty pleas of Leonard Francis, his company, and a senior Navy officer are vitally important steps in our active, ongoing investigation,” said Assistant Attorney General Caldwell.  “We will continue our efforts to root out those involved in this long-running corruption scheme, both inside and outside the Navy.  The interests of justice and national security demand nothing less.”

“It is astounding that Leonard Francis was able to purchase the integrity of Navy officials by offering them meaningless material possessions and the satisfaction of selfish indulgences,” said U.S. Attorney Duffy.  “In sacrificing their honor, these officers helped Francis defraud their country out of tens of millions of dollars.  Now they will be held to account.”  

“The greed of all those involved in this massive fraud and bribery case has cost American taxpayers tens of millions of dollars,” said NCIS Director Traver.  “NCIS and our law enforcement partners have pored through mountains of documents and emails, discovering and documenting the crimes so that those who participated can be held accountable.  Although today’s pleas are a significant milestone in the case, this investigation is far from over; there is much more work to be done.”

“The guilty pleas entered today send a clear message to those who, driven by greed, betray the faith and trust of the American taxpayers,” said DCIS Deputy Inspector General Burch.  “The DCIS, along with its law enforcement partners, will relentlessly pursue those who corrupt the procurement process for their own personal benefit.”

“I’m extremely gratified that the work of our investigative support team could make a significant contribution to the outcome in this egregious case of defrauding the government and, ultimately, the American taxpayer,” said DCAA Director Bales.

Leonard Glenn Francis, 50, of Singapore, the owner and CEO of GDMA, pleaded guilty to conspiracy to commit bribery, bribery and conspiracy to defraud the United States before U.S. Magistrate Judge Jan M. Adler of the Southern District of California.  GDMA likewise pleaded guilty today to conspiracy to commit bribery, bribery and conspiracy to defraud the United States.  A sentencing hearing for both Francis and GDMA is scheduled for April 3, 2015, before U.S. District Judge Janis L. Sammartino of the Southern District of California.  As part of their plea agreements, Francis and GDMA have agreed to forfeit $35 million and pay full restitution to the Navy, in an amount to be determined at sentencing. 

As part of his guilty plea, Francis admitted to defrauding the Navy of tens of millions of dollars by routinely overbilling for various goods and services, including fuel, tugboat services and sewage disposal. 

Francis also admitted that over the course of the conspiracy, he and GDMA gave Navy officials millions of dollars in gifts and expenses, including over $500,000 in cash; hundreds of thousands of dollars in prostitution services; travel expenses, including first class airfare, luxurious hotel stays and spa treatments; lavish meals, including Kobe beef, Spanish suckling pigs, top-shelf alcohol and wine; and luxury gifts, including Cuban cigars, designer handbags, watches, fountain pens, designer furniture, electronics, ornamental swords and hand-made ship models.  In exchange, Francis solicited and received classified and confidential U.S. Navy information, including ship schedules.  Francis also sought and received preferential treatment for GDMA in the contracting process.  Francis further admitted that he bribed a federal criminal investigator in an attempt to learn more about the federal investigation of his company.

Also today, U.S. Navy Capt. Daniel Dusek, 47, of San Diego, California, pleaded guilty to one count of conspiracy to commit bribery before U.S. Magistrate Judge William V. Gallo of the Southern District of California.  A sentencing hearing before U.S. District Judge Janis L. Sammartino of the Southern District of California is scheduled for April 3, 2015.  

Dusek, the highest-ranking of five present and former Navy officials to plead guilty in the case so far, admitted that he used his influence as Deputy Director of Operations for the 7th Fleet, headquartered in Yokosuka, Japan, and later as commanding officer of the USS Bonhomme Richard and the executive officer of the USS Essex, to benefit Francis and GDMA.  Dusek admitted that he hand-delivered Navy ship schedules to the GDMA office in Japan or emailed them directly to Francis or a GDMA employee on dozens of occasions, each time taking steps to avoid detection by law enforcement or Navy personnel.  Dusek further admitted that Francis plied him with lavish meals, alcohol, entertainment, gifts, dozens of nights and incidentals at luxury hotels, including the Marriott Waikiki and the Shangri-La in Makati, Philippines, and the services of prostitutes.

Dusek admitted that, after accepting these gifts, he worked to direct Naval ships to GDMA’s port terminals.  For example, on one occasion, he steered an aircraft carrier and its strike group to Port Klang, Malaysia, a port terminal owned by Francis. 

In addition to Francis, GDMA and Dusek, five other individuals have pleaded guilty for their roles in the scheme to date: U.S. Navy Commander Jose Luis Sanchez, U.S. Naval Criminal Investigative Service Special Agent John Beliveau, U.S. Navy Petty Officer First Class Dan Layug and GDMA employees Alex Wisidagama and Edmond Aruffo.

The ongoing investigation is being conducted by NCIS, DCIS and DCAA.  The case is being prosecuted by Director of Procurement Fraud Catherine Votaw and Senior Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Robert S. Huie of the Southern District of California. 

Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.

In a speech at a Justice Department ceremony honoring the late Rev. Martin Luther King, Jr., Attorney General Eric Holder said Thursday that the nation must improve police officer safety at the same time that it confronts the sense of mistrust between law enforcement and the communities they serve.  As an initial step, the Attorney General called for better reporting of data on both issues, noting that the current level of reporting by localities on both uses of force by police—as well as officer fatalities—was incomplete.

“The troubling reality is that we lack the ability right now to comprehensively track the number of incidents of either uses of force directed at police officers or uses of force by police,” the Attorney General said in his remarks.  “This strikes many – including me – as unacceptable.  Fixing this is an idea that we should all be able to unite behind.”

Currently, federal authorities publish annual figures on the number of “justifiable homicides” by law enforcement, as well as figures on the number of law enforcement officers killed or assaulted.   But since reporting is voluntary, not all police departments participate, causing the figures to be incomplete.  In his comments Thursday, the Attorney General urged improving the method for collecting both these sets of data.

“This would represent a commonsense step that would begin to address serious concerns about police officer safety, as well as the need to safeguard civil liberties,” he said.

A complete version of the Attorney General’s remarks, as prepared for delivery, appear below:

“Thank you, Vanita [Gupta], for those kind words – and thank you all for being here.  It’s a privilege to welcome such a distinguished crowd to the Great Hall for this important observance and on what will be my last opportunity to share it with you as Attorney General.  It’s a pleasure, as always, to join so many valued colleagues and good friends in paying tribute to the enduring legacy of an extraordinary leader; in celebrating the contributions of a singular figure in our nation’s history; and in honoring the memory of a lifelong champion for equality, for peace, and for justice: the Reverend Dr. Martin Luther King, Jr.

“I am glad to share the stage this morning with Dorothy Williams, Richard Toscano, Thomas Wright, and of course Assistant Attorney General Gupta.  I’d like to thank every member of the Junior ROTC Color Guard for opening today’s ceremony.  I want to extend a special welcome to civil rights activist Dorie Ann Ladner, whom we’re honored to have with us today.  And I particularly want to thank all of you for taking time out of your busy schedules to participate in this annual event – on what should have been Dr. King’s 86th birthday – as we join millions of our fellow citizens, throughout the country, in remembering the man who helped to lead a sweeping movement that forever changed the face of America – and inspired people around the world to reach for opportunity and inclusion.

“The remarkable and enduring achievements of the Civil Rights Era – in tearing down segregationist policies, expanding access to the ballot box, and enshrining key protections into law – did nothing less than alter the course of history.  The impact of the Movement has been transformative, and its power impossible to measure, over the last five decades.  Yet, as we’ve been reminded all too clearly in recent months – despite this once-unimaginable progress – there’s no denying, as we gather for this important commemoration, that a great deal of work remains to be done.  Even today, in 2015, our journey is not yet complete.  Economic progress remains uneven, educational opportunity is still not uniform, the right to vote is under siege.  And we continue to live in a world that’s too often divided – a world riven by misunderstanding and despair.  A world beset by momentous challenges, old and new.  And a world badly in need of the compassion, the inclusion, and the healing that Dr. King stood for, and worked toward, throughout his too-short 39 years.

“Especially in this time of trial, it is not only fitting – but essential – that we rededicate ourselves to the vision, and the values, that guided Dr. King at every stage of his career.  Today – just as they did 50 years ago – these values point us away from tired rhetoric and stale talking points.  They move us toward open dialogue and constructive engagement.  They impel us to remember the common humanity that Dr. King found in every person he met – in police officers as in protestors; in prisoners as in presidents.  And they call us to the service of our fellow citizens, the betterment of our nation, and the protection of all that is exceptional about the country we love.  After all, as Dr. King once said, “everybody can be great [. . .] because everybody can serve.”

“I am mindful, as we come together this morning, that there are few who answer this call to greatness more heroically – and fewer still who make more contributions and sacrifices in the name of public service – than those who stand on the front lines of our fight for public safety: America’s brave men and women in law enforcement.

“As the brother of a retired police officer, I know in a personal way that these courageous individuals perform their difficult and dangerous jobs with extraordinary valor, compassion, and honor.  They serve as steadfast guardians of our rights and liberties – shouldering tremendous and often-unheralded burdens.  They incur significant risks in order to keep the rest of us safe.  And they are routinely called upon to make split-second decisions to protect themselves and those around them.

“In short, they are true American heroes – whose patriotism, integrity, and commitment to the highest standards of excellence are simply beyond question.  I know this.  And I have been troubled and deeply disturbed by recent mischaracterizations of this Administration’s regard for those who wear the badge.

“Over the past six years, our record of support for law enforcement has been both strong and unambiguous.  This Justice Department, under my leadership, has taken significant, and in some cases unprecedented, steps to protect and empower our local, state, tribal, and federal law enforcement colleagues.  This is simple fact.  In 2011, I created an Officer Safety Working Group in response to concerns about officer-directed violence.  Through groundbreaking initiatives like VALOR, the Department is providing cutting-edge training to help prevent violence against law enforcement, to improve officer resilience, and to increase survivability during violent encounters.  We’re currently funding thorough analysis of 2014 officer fatalities, including ambushes and other incidents, so we can mitigate risks going forward.  Under our Bulletproof Vest Partnership Program, we’re helping to provide lifesaving equipment to those who serve on the front lines.  And through programs like the Public Safety Officers’ Benefits Program, we’re offering our strongest support to brave officers and their loved ones during the toughest of times.

“As someone who knows firsthand the pride of seeing a family member in uniform – and the anguish that comes with knowing a loved one is in harm’s way, out patrolling the street – my personal support for those who serve has been steadfast throughout my career.  I believe that every law enforcement officer is deserving not merely of our utmost respect, but our deepest gratitude.  And that’s why last month’s devastating and barbaric attack – which claimed the lives of two of New York’s finest, Officers [Wenjian] Liu and [Rafael] Ramos – was so shocking, and so deplorable.

“These senseless murders were assaults on us all – on our nation, on the rule of law, and on everyone who stands for justice.  They serve as tragic reminders of the dangers that all of our police officers regularly face.  And they have lent new urgency to our ongoing, national conversation about the need to reduce crime – while at the same time building public trust wherever it has been eroded.

“This afternoon, I’ll be traveling to Philadelphia to convene the latest in a series of roundtable discussions – with law enforcement leaders, elected officials, community members, young people, and civil rights advocates – in order to keep advancing this dialogue.  Over the course of my travels throughout the country, I’ve had the chance to discuss these critical issues with Americans of all ages, backgrounds, races, ethnicities, and walks of life – from Atlanta to Cleveland; from Memphis to Chicago.

“I’ve heard from police officers, protesters, faith leaders, and concerned citizens.  On many occasions, I have been deeply moved by the stories and perspectives I’ve heard – from parents hoping to secure brighter and safer futures for their children; from passionate young people becoming engaged in our national debate; from police officers valiantly putting their lives on the line to make our neighborhoods just a little bit safer.

“Through all of these interactions, I have been struck not by the differences that have emerged, but by the remarkable commonalities.  By the desire for peace, for safety, and for justice that drives everyone who’s engaged in this discussion.  And by the shared vision of a better tomorrow, and a more secure and inclusive future, that unites all Americans.

“Let me be clear: none of these goals are in tension.  None of our aims are in conflict.  And so it is incumbent upon all of us to protect both the safety of our police officers and the rights and wellbeing of all of our citizens.

“We can, and we must, examine new ways to do both.  The first step to achieving this is to obtain better, more accurate data on the scope of the challenges we face.  For instance, I’ve heard from a number of people who have called on policymakers to ensure better record-keeping on injuries and deaths that occur at the hands of police.  I’ve also spoken with law enforcement leaders – including the leadership of the Fraternal Order of Police – who have urged elected officials to consider strategies for collecting better data on officer fatalities.  Today, my response to these legitimate concerns is simple: we need to do both.

“This would represent a commonsense step that would begin to address serious concerns about police officer safety, as well as the need to safeguard civil liberties.  The troubling reality is that we lack the ability right now to comprehensively track the number of incidents of either uses of force directed at police officers or uses of force by police.  There has been some effort to address this in the past – in the 1990s, for example, Congress enacted legislation intended to help the Justice Department collect data on officer-involved shootings.  But since the reporting remains optional, and perhaps lacks sufficient incentives, many localities do not provide this data.  Likewise, absent a requirement for reporting of injuries and deaths of police officers, many localities fail to report these statistics as well.  This strikes many – including me – as unacceptable.  Fixing this is an idea that we should all be able to unite behind.

“On a more fundamental level, our shared objectives also require that we work together to confront the mistrust that exists – in some places – between law enforcement officers and the communities they serve.  This is why President Obama and I have announced a variety of proposals that will enable us to bridge these divides wherever they are uncovered – from a National Initiative for Building Community Trust and Justice, to new funding for body-worn cameras.  In recent weeks, I have also announced improvements to racial profiling guidance that applies to all federal law enforcement agents conducting law enforcement activities.  And the President has taken the historic step of convening a new Task Force on 21st Century Policing – which held its first hearing just two days ago, and which – under the leadership of Philadelphia Police Commissioner Charles Ramsey, former Assistant Attorney General Laurie Robinson, and other law enforcement leaders and experts – will provide strong, national direction to the profession as a whole, on a scale not seen since the Johnson Administration.

“I want to emphasize that these reforms are not aimed at individual officers themselves – who perform their jobs with distinction each and every day.  Rather, they are intended to strengthen the criminal justice system as a whole, as well as the policies and procedures that shape this system and govern the way it functions.  This will improve public confidence – allowing law enforcement to operate with maximum safety, effectiveness, fairness, and legitimacy – in every case and circumstance.  And it will help to ensure that our present dialogue can be translated into positive, meaningful action.

“We owe it to our brave law enforcement officers, to peaceful demonstrators – and, especially, to our youngest citizens – to talk forthrightly about the issues we face, no matter how difficult or complex they may be.  We owe it to ourselves and our nation to seek areas of consensus, rather than to exploit old divisions and reopen old wounds.  Most of all, we owe it to those who, throughout history, have fought, and sacrificed, and given their lives to bring our country to this moment – from Dr. King and the pioneers of the Civil Rights Era, to Officers Ramos and Liu and the colleagues who carry on their work – to lay aside meaningless grievances.  To reject political posturing from those who only demonstrate their interest in front of television cameras.  And to do everything in our power to confront the challenges of our time – and find a way to move forward – together.

“During my visit to Memphis last month, I had the opportunity to tour the National Civil Rights Museum at the Lorraine Motel, where Dr. King’s room is preserved just as it was on April 4, 1968 – the night he was taken from us by the very same forces of intolerance against which he had stood throughout his life.

“I could not help but think, as I stood on that motel balcony, about this great leader’s unshakeable belief that promoting love – and condemning all forms of violence – is the only way to “cut off the chain of hate.”

“I thought, as well, of the words of my predecessor as Attorney General, Robert Kennedy – who spoke about Dr. King’s legacy, and what he called the “mindless menace of violence,” just one day after Dr. King’s untimely murder.  In that emotional speech, then-Senator Kennedy urged a grieving nation to remember that “[t]he victims of . . . violence are black and white, rich and poor, young and old, famous and unknown.”  And he reminded us that – no matter where they came from or who they were – in life, all of these victims were “. . . human beings whom other human beings loved and needed.”

“As we gather today, in the shadow of recent acts of senseless violence, I cannot help but reflect on the lives that have been lost over the past few months – in communities where tragic deaths have exposed rifts between citizens and law enforcement; in New York City, where two brave police officers were murdered because of the uniforms they wore; and in Paris, where heinous and cowardly acts of terror shocked the world and targeted the freedoms we all hold dear.

“Unfortunately, none of this is new to us.  Senseless violence has coursed through the veins of this world for ages.  And we have seen, throughout history, that acts of hatred breed only hatred.  We understand that words of division only deepen division.  And we know that our most serious and systemic challenges continue to demand the very best of us – just as they did in Dr. King’s time.

“So today, once again, let us not shy away from – but embrace – the noisy discord of honest, frank, and vigorous debate.  Never forget – this great nation was born of protest – by residents of this land who took to the streets to demand fairness from those who governed them.  Let us never fail to support those who wear the badge, or to work alongside them in building a constructive dialogue – a dialogue founded on our common humanity.  Let us act on the crucial recognition that those who serve with honor serve greatly – and they deserve our deepest respect.  And let us reject the empty rhetoric of anyone who would engage in cynical attempts to divide and cast blame – choosing instead to affirm once more that Americans from all backgrounds and perspectives must come together to be part of positive change.

“In this great country – a nation of laws and of high ideals – we have always had the power to forge our own future.  Dr. King’s example offers inspiring proof of this fact.  And that’s why, as our present work unfolds – so long as we continue to rely on the engagement of our citizens, the ongoing commitment of our police officers, and the singular expertise and experience of leaders like you – I believe there is good reason for confidence in where this effort will take us.

“I want to thank you all, once again, for your dedication to this work.  Wherever I am and whatever I am doing, I will always be proud to count you as colleagues and partners in the work of making better the nation that we all love.

“Thank you for all that you have done these past six years and for all that you will do in the years ahead. “

The mastermind of a more than $700,000 stolen identity tax refund fraud scheme was found guilty by a jury of conspiracy to commit theft of public money, theft of public money and aggravated identity theft, the Department of Justice, the U.S. Attorney’s Office for the Middle District of Alabama and the Internal Revenue Service (IRS) announced today. 

Tarrish Tellis, 38, of Montgomery, Alabama, was found guilty after a three-day trial in Montgomery.  According to evidence presented at trial, Tellis’ co-conspirator, Nakia Jackson, obtained approximately 700 names, dates of birth and social security numbers from an employee of the Alabama Medicaid State Agency.  Jackson provided some of the names to Tellis, who in turn used them to file false tax returns.  In exchange, Tellis taught Jackson how to file false tax returns.

According to evidence presented at trial, in order to hide his involvement in the scheme, Tellis orchestrated means in which to conceal the origin of the funds.  Tellis recruited several friends and relatives, including Bobby Joe Means, Delancey Tolliver, Glen Powell Jr. and Tracey Montgomery, to open up bank accounts for the purpose of receiving fraudulent tax refunds.  When a tax refund was deposited into their bank accounts, Tellis directed them to withdraw the money and provide it to him.  He directed more than $300,000 to those accounts.  Tellis took additional steps by recruiting a bank teller, Laquanta Clayton, who used her position to open up bank accounts in the name of fictitious individuals and in the name of her daughter’s father.  Tellis directed around $200,000 into the accounts that Clayton controlled, which Clayton then withdrew and provided the majority of the money to Tellis.  Tellis also took steps to conceal his involvement in the filing of false tax returns, including filing numerous tax returns by accessing a residential wireless router that was not password protected.  By doing so, Tellis made it appear that the owner of the residence had filed the returns. 

At his April 15 sentencing, Tellis faces a statutory minimum sentence of two years in prison and a statutory maximum sentence of 125 years in prison, plus fines and forfeiture.

On April 25, 2014, Jackson was sentenced to serve 87 months in prison.  Clayton was sentenced on Feb. 19, 2014, to serve 21 months in prison.  Tolliver was sentenced to serve 15 months in prison, Powell Jr. and Means were each sentenced to serve 12 months and one day in prison and Montgomery was sentenced to serve six months in prison. 

The case was investigated by special agents of IRS - Criminal Investigation.  Trial Attorneys Gregory P. Bailey, Charles M. Edgar Jr. and Michael C. Boteler of the Justice Department’s Tax Division, with the assistance of Assistant U.S. Attorney Todd Brown for the Middle District of Alabama, prosecuted the case.

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

A Michigan physician involved in a $2.1 million home health care fraud scheme was sentenced today to 15 months in prison.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Detroit Office made the announcement.

Dr. Paula Williamson, 69, of Redford Township, Michigan, was sentenced by U.S. District Judge Paul D. Borman of the Eastern District of Michigan.  In addition to her prison term, Williamson was ordered to pay $1,343,261.61 in restitution.

According to her plea agreement, from August 2009 through October 2012, Williamson conspired with others to commit health care fraud by referring Medicare beneficiaries for home health care services that were medically unnecessary and never provided.  Williamson also falsified documents that were used to support false and fraudulent claims to Medicare.

According to her admissions, Williamson signed referrals for a home health care agency known as AMB Healthcare Inc. (AMB), which was located in Farmington Hills, Michigan, and owned by a co-conspirator.  AMB needed a physician’s referral to bill Medicare for purported home health care services.  Williamson admitted that, at the request of her co-conspirators, including the owner of AMB, she falsified medical documentation and certified Medicare beneficiaries as homebound—a requirement for Medicare reimbursement—when, in fact, she had never examined nor even met the beneficiaries, and they were not homebound.  AMB used the falsified documents to support fraudulent claims to Medicare for home health care services that were never rendered and not medically necessary. 

Between April 2009 and December 2012, Medicare paid AMB approximately $2.1 million for purported home health care services.  Of that amount, approximately $1.3 million was based on Williamson’s false home health referrals.

This case was investigated by the FBI and HHS-OIG, and was brought by the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.  The case was prosecuted by Trial Attorneys Matthew C. Thuesen and Niall M. O’Donnell of the Criminal Division’s Fraud Section. 

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion.  In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.  

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