District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Former Acting HHS Cyber Security Director Convicted for Engaging in Child Pornography EnterpriseRead the Press Release
The former acting director of cyber security at the U.S. Department of Health and Human Services was convicted by a federal jury in the District of Nebraska today of engaging in a child exploitation enterprise, conspiracy to advertise and distribute child pornography, and accessing a computer with intent to view child pornography in connection with his membership in a child pornography website.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Deborah R. Gilg of the District of Nebraska and Special Agent in Charge Thomas R. Metz of the FBI’s Omaha Division made the announcement.
Timothy DeFoggi, 56, formerly of Germantown, Maryland, is the sixth individual to be convicted as part of an ongoing investigation targeting three child pornography websites. The three websites were run by a single administrator, who has since been convicted in the District of Nebraska of engaging in a child exploitation enterprise in connection with his administration of the sites.
According to evidence presented at trial, DeFoggi registered as a website member on March 2, 2012, and maintained his membership and activity until Dec. 8, 2012, when the website was taken down by the FBI. Through the website, DeFoggi accessed child pornography, solicited child pornography from other members, and exchanged private messages with other members where he expressed an interest in the violent rape and murder of children. DeFoggi even suggested meeting one member in person to fulfill their mutual fantasies to violently rape and murder children.
The jury reached its verdict following a four-day trial before U.S. Chief District Judge Laurie Smith Camp. Sentencing is scheduled for Nov. 7, 2014.
This case is a result of investigative efforts led by the FBI’s Omaha Field Office, Violent Crimes Against Children Section, Major Case Coordination Unit, and Digital Analysis and Research Center. This case was prosecuted by Trial Attorneys Keith Becker and Sarah Chang of the Criminal Division’s Child Exploitation and Obscenity Section, along with Assistant U.S. Attorney Michael P. Norris of the U.S. Attorney’s Office for the District of Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.ExxonMobil Pipeline Company to Pay Civil Penalty Under Proposed Settlement for Torbert, Louisiana, Oil SpillRead the Press Release
ExxonMobil Pipeline Company (ExxonMobil) has agreed to pay a civil penalty for an alleged violation of the Clean Water Act stemming from a 2012 crude oil spill from ExxonMobil’s “North Line” pipeline near Torbert, Louisiana, the Department of Justice and the Environmental Protection Agency (EPA) announced today. Under the consent decree lodged today in federal court, ExxonMobil will pay $1,437,120 to resolve the government’s claim.
The United States’ complaint, which was also filed today in the U.S. District Court for the Middle District of Louisiana, alleges that ExxonMobil discharged at least 2,800 barrels (or 117,000 gallons) of crude oil in violation of Section 311 of the Clean Water Act. On April 28, 2012, ExxonMobil’s 20/22-inch-diameter pipeline ruptured near Torbert, about 20 miles west of Baton Rouge, and crude oil spilled into the surrounding area and flowed into an unnamed tributary connected to Bayou Cholpe.
“Oil spills into our nation’s waters endanger public health and the environment and warrant concerted enforcement efforts,” said Sam Hirsch, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Today’s settlement achieves a just result and furthers our enforcement mission.”
“All businesses have an obligation to protect their workers, the local community and the environment in which they operate,” said Cynthia Giles, Assistant Administrator for Enforcement and Compliance Assurance at EPA. “EPA is committed to protecting communities by enforcing laws that reduce pollution in local waterways.”
The $1.4 million penalty is in addition to the costs incurred by ExxonMobil to respond to the oil spill and to replace the segment of ruptured pipeline. ExxonMobil is completing cleanup actions pursuant to an administrative order issued by the Louisiana Department of Environmental Quality. The company also continues to do follow-up work and to operate under a Corrective Action Order issued by the United States Department of Transportation, Pipeline and Hazardous Materials Safety Administration.
The Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. The penalty paid for this spill will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Fund Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.
The proposed consent decree, lodged in the Middle District of Louisiana, is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html .Department of Justice Releases Second Report to Congress on Indian Country Investigations and ProsecutionsRead the Press Release
The Department of Justice released today its second report to Congress entitled Indian Country Investigations and Prosecutions, which provides a range of enforcement statistics required under the Tribal Law and Order Act of 2010, as well as information about the progress of the Attorney General’s initiatives to reduce violent crime and strengthen tribal justice systems.
The report, based on data compiled from the case management system used by U.S. Attorney’s Offices (USAO), shows prosecutors in 2013 continued to bring substantial numbers of cases to federal court (a 34 percent increase over FY 2009 numbers) and prosecute a substantial majority of all cases referred to them. Of the cases that were declined for federal prosecution, most were declined for insufficient evidence or because they were referred to another prosecuting authority, such as the tribe, for potential prosecution.
“As detailed in this report, the Department of Justice is making good on our commitment to strengthen cooperation with sovereign tribes, reduce violent crime, and ensure justice for every individual,” said Attorney General Eric Holder. “From our work to empower Indian women under the landmark Violence Against Women Reauthorization Act, to the task force we established to safeguard children in Indian country from violence and abuse, we have made significant strides – in close partnership with tribal nations – to bolster the safety and security of all American Indian and Alaska Native communities. As we move forward, we will continue to expand on this critical work; to deepen our ongoing efforts; and to reaffirm our dedication to the promise of equal rights, equal protection, and equal justice for all.”
Although declination rates are an imperfect means of evaluating the effectiveness of criminal justice in Indian country or elsewhere, the report shows that with few exceptions, areas where the largest populations of American Indian people live and suffer from the most serious crime rates, such as the Southwest and the northern plains states (which together handled approximately 70 percent of the 2,542 cases resolved in 2013), federal declination rates were the lowest in the nation. For instance, South Dakota had the second to highest number of cases resolved in the country last year, 470 cases, and one of the lowest declination rates of 26 percent. Arizona resolved the highest number of cases, 733 cases, and had a declination rate of 28 percent.
Associate Attorney General Tony West announced the findings in remarks to the Four Corners Indian Country Conference today on the Navajo Nation in Flagstaff, and met separately with the Attorney General’s advisory subcommittee on Native American issues to discuss the report, among other matters.
“We are witnessing an unprecedented era of collaboration among U.S. Attorneys’ offices and tribal law enforcement and prosecutors across the country,” said Associate Attorney General West. “This report shows the fruits of this continuing partnership between the federal government and American Indian tribes, including enhancing training and capacity building for tribal court systems and improving responses to victims in Indian country.”
“Over the past five years, the Justice Department and our tribal partners have taken important steps forward on our journey toward a safer Indian Country,” said Timothy Purdon, U.S. Attorney for the District of North Dakota and chair of the Attorney General’s advisory subcommittee on Native American issues. “Vigorous enforcement of federal laws is vitally important to strengthening public safety on American Indian reservations. We are pleased to see in this report that U.S. Attorney’s Offices across the country continue to work hard to remove the most dangerous offenders and work closely with tribal law enforcement and prosecutors. These promising numbers are the direct result of this enhanced communication and collaboration.”
“The FBI continues to be committed to public safety in Indian Country,” said FBI Assistant Director Joseph S. Campbell. “Our partnership with federal, state, local, and tribal agencies remains strong as we continue to aggressively address violent crime and victimization in tribal communities.”
The information contained in the report shows the following:
- The Justice Department’s prioritization of Indian country crime has continued to result in substantial numbers of prosecutions, despite resource constraints that impacted the U.S. Attorney community in 2013. Between FY 2009 and FY 2012, the number of cases the department filed against defendants in Indian country increased nearly 54 percent. In FY 2013, due to fiscal challenges, overall case filings in Indian country declined somewhat compared to FY 2012, but still remained 34 percent above the number of cases filed when the department first began its department-wide tribal justice initiative in 2009. Notwithstanding the fiscal impact of the sequester, reduced budgets, and a hiring freeze, federal agents and prosecutors continued to focus their efforts on improving public safety in Indian country.
- A substantial majority of Indian country criminal investigations opened by the FBI were referred for prosecution.
- A substantial majority of Indian country criminal cases opened by the United States Attorneys’ Offices were prosecuted.
- USAO data for CY 2013 show that 34 percent (853) of all Indian country submissions for prosecution (2,542) were declined for prosecution. In CY 2012, USAOs declined approximately 31 percent (965) of all (3145) Indian country submissions for prosecution. USAO data for CY 2011 indicate that just under 37 percent (1,041) of all Indian country submissions for prosecution (2,840) were declined.
- The most common reason for declination by USAOs was insufficient evidence (56 percent in CY 2013, 52 percent in CY 2012, and 61 percent in CY 2011).
- The next most common reason for declination by USAOs was referral to another prosecuting authority (21 percent in CY 2013, 24 percent in CY 2012, and 19 percent in CY 2011).
The most common reason FBI Indian country investigations were closed administratively without referral for prosecution was that the investigation concluded that no federal crime had occurred.
- For instance, all but 30 of the 164 death investigations the FBI closed administratively in CY 2013 were closed because the FBI established that the death was due to causes other than homicide – i.e., accidents, suicide, or death from natural causes.
Other important developments in FY 2013:
VAWA Pilot Projects
The fight against domestic violence in Indian country has been an especially important priority for the Department of Justice, and in 2013, Congress and this administration took an historic step forward with the passage of the Violence Against Women Reauthorization Act of 2013 (VAWA 2013), which the President signed into law on March 7, 2013.
Congress, in VAWA 2013, provided new tools to fight domestic violence in Indian country, and the department spared no time utilizing them. From the date the act took effect, March 7, 2013, through the end of fiscal year 2013, U.S. Attorneys with prosecutorial responsibilities in Indian country have charged defendants with the amended provisions of the federal assault statutes that strengthened penalties for domestic assault offenses, such as strangulation and stalking. And, while the new law’s tribal criminal jurisdiction provision takes effect generally on March 7, 2015, under VAWA 2013’s “Pilot Project” provisions, the department recently approved three tribes’ applications voluntary “Pilot Project” to begin exercising special domestic violence criminal jurisdiction sooner. These tribes – the Pascua Yaqui Tribe of Arizona, the Umatilla Tribes of Oregon, and the Tulalip Tribes of Washington – will be the first tribes in the nation to exercise special criminal jurisdiction over crimes of domestic and dating violence, regardless of the defendant’s Indian or non-Indian status, under VAWA 2013.
Strengthening Partnerships and Support for Tribal Self-Governance
Strengthening partnerships and tribal self-governance was a major theme of the Attorney General’s message to tribal leaders on Nov.13, 2013, at the White House Tribal Nations Conference, where he announced a proposed statement of principles to guide the department’s work with federally recognized tribes. As the Attorney General said, “ As a result of these partnerships – and the efforts of everyone here – our nation is poised to open a new era in our government-to-government relationships with sovereign tribes.”
U.S. Attorneys’ offices around the country are engaged in an unprecedented level of collaboration with tribal law enforcement, consulting regularly with them on crime-fighting strategies in each district. One important example of this is the department’s enhanced Tribal Special Assistant U.S. Attorney (SAUSA) program. Tribal SAUSAs are cross-deputized tribal prosecutors who are able to prosecute crimes in both tribal court and federal court as appropriate. These Tribal SAUSAs serve to strengthen a tribal government’s ability to fight crime and to increase the USAO’s coordination with tribal law enforcement personnel. The work of Tribal SAUSAs can also help to accelerate a tribal criminal justice system’s implementation of TLOA and VAWA 2013.
Read the entire report at www.justice.gov/tribal/tloa.html
Read about the Justice Department’s efforts to increase public safety in Indian County at www.justice.gov/tribal/accomplishments.html
Associate Attorney General West Announces $3 Million in Grants to Address Violence Against Women in Rural and Tribal Communities in the Bakken RegionRead the Press Release
Associate Attorney General Tony West today announced $3 million dollars in grants from the Office on Violence Against Women (OVW) to increase local and tribal capacity to prosecute crimes of violence against women and provide services to victims of sexual assault, domestic violence and stalking in the Bakken Region of North Dakota and Montana.
Associate Attorney General West made the announcement at the Four Corners Indian Country Conference today taking place on the Navajo Nation near Flagstaff, Arizona. The grants are part of the Justice Department’s ongoing commitment to protecting women from violence and strengthening the capacity of communities to respond to domestic and sexual violence.
OVW’s Bakken Region special initiative launched in April 2014 and is the first large scale project targeting resources to support the expansion of services to victims of sexual assault, domestic violence and stalking as well as aid the local criminal justice system in responding to these crimes in the Bakken region.
“Victims of sexual assault, domestic violence, and stalking living in a vast rural region like the Bakken face unique challenges in accessing critical, life-saving services,” said Associate Attorney General Tony West. “With this new, targeted funding, tribes and local communities will be better equipped to respond to the increased need for mental health services, legal assistance, housing, and training.”
The five grantees supported by OVW’s Bakken Region Initiative are: Fort Peck Assiniboine and Sioux Tribes, Poplar, Montana; First Nations Women’s Alliance, Devils Lake, North Dakota; Montana Coalition Against Domestic and Sexual Violence, Helena, Montana; North Dakota Council on Abused Women’s Services, Bismarck, North Dakota; and Three Affiliated Tribes of the Fort Berthold Reservation, New Town, North Dakota.
With Justice Department funding these grantees will be able to enhance responses to domestic violence, dating violence, sexual assault, and stalking, and expand mental health counseling, advocacy, legal assistance, prevention education, sexual assault forensic examiner programs, Sexual Assault Response Teams, and law enforcement training.
In addition, the Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation in Montana and the Three Affiliated Tribes of the Fort Berthold Reservation in North Dakota are each receiving a three-year $450,000 grant to support the salary, travel, and training costs of a tribal prosecutor, who will be cross-designated to serve as a tribal Special Assistant United States Attorney (SAUSA) in the local U.S. Attorney’s Office.
“OVW grant funds have made a marked difference in the lives of countless victims and survivors, and we are eager to provide dedicated funding that will support desperately needed services,” said Bea Hanson, OVW’s Principal Deputy Director. “These grants represent the Department’s recognition that to combat violence against women, especially in Indian country, we must be responsive to emerging issues.”
For more information on OVW and its programs, please visit: www.justice.gov/ovw .
Utah Businessman Indicted for Unlicensed Dealing in Firearms, Smuggling U.S. Goods and Filing False Tax ReturnsRead the Press Release
Adam Michael Webber, of Salt Lake County, Utah, was indicted on Friday by a federal grand jury in the District of Utah, the Justice Department announced. The indictment, which was made public today, charges Webber with one count of dealing in firearms without a license, one count of smuggling goods from the United States and six counts of filing false tax returns.
According to the indictment, no later than 2007, Webber established a business that sold firearms and firearms’ parts and accessories, largely through the Internet. The business operated under the name HK Parts, using the website www.hkparts.net , and was solely owned and operated by Webber. In 2009, Webber incorporated the business as HK Parts Inc., which used the same website. Webber was the sole shareholder of HK Parts Inc.
According to the indictment, on or about June 20, 2007, Webber signed a stipulated settlement agreement with the United States in which he agreed never to apply for a federal firearms license or be a responsible person for any federal firearms licensee or business, and that he would not engage in the business of manufacturing, importing or dealing in firearms. However, during the years 2007 through 2012, Webber individually and through HK Parts and HK Parts Inc., sold firearms and firearms parts and accessories.
Webber is charged with filing false individual income tax returns for 2007 through 2010, which underreported the gross receipts of the business, and with filing false income tax returns for an S Corporation for 2009 and 2010, which also underreported the gross receipts of the business.
A trial date has not been scheduled. If convicted, Webber faces a statutory maximum sentence of 33 years in prison and may be subject to fines.
This case was investigated by IRS-Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being jointly prosecuted by the U.S. Attorney’s Office for the District of Utah and the Justice Department’s Tax Division.
An indictment merely alleges that a crime has been committed and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Related Materials:
United States v. Adam Michael Webber
Indictment
Exhibit AU.S. Citizen Extradited from the Netherlands Sentenced to 35 Years in Prison for Sexual Exploitation of a MinorRead the Press Release
A U.S. citizen living in Amsterdam, Netherlands, was sentenced today to serve 35 years in prison for sexually exploiting a minor in California and elsewhere and producing images of that abuse.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Benjamin B. Wagner of the Eastern District of California and Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division made the announcement.
Christopher David Robinette, 44, pleaded guilty on April 21, 2014, to eight counts of sexual exploitation of a minor and one count of transporting a minor in interstate or foreign commerce for purposes of engaging in criminal sexual activity. According to court documents, between September 2004 and August 2006, Robinette traveled to Fresno, California, to sexually exploit a minor and produce digital still and video images of the abuse. The sexual abuse took place in California, including the Fresno area, as well as in Nevada, Mexico and Costa Rica. Robinette’s crimes were detected shortly after he uploaded images of child pornography, including images he produced, to a Microsoft SkyDrive account.
In addition to his prison sentence, Senior U.S. District Judge Anthony W. Ishii of the Eastern District of California, ordered Robinette to serve a lifetime of supervised release following his prison term, during which his access to computers, the Internet and minors will be restricted, and he will be obligated to register as a sex offender.
This case was investigated by the FBI’s Sacramento Division and FBI in The Hague, Netherlands, with assistance from the Korps Landelijke Politie Diensten (Dutch National Police), the Amsterdam Amstelland Police Department (Amsterdam local police), and the Fresno Police Department. The National Center for Missing & Exploited Children assisted in coordinating information for a law enforcement response. The case was prosecuted by Trial Attorney Maureen Cain of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David Gappa of the Eastern District of California.
The Department of Justice’s Office of International Affairs and CEOS, as well as the Dutch Ministry of Security and Justice, assisted in coordinating Robinette’s extradition to Fresno. The U.S. Marshals Service returned Robinette to Fresno, and he has been detained as a flight risk and danger to the community since his initial court appearance on Dec. 26, 2012.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Sixteen Former Puerto Rico Police Officers Plead Guilty to Running Criminal Organization from the Police Department<br />Read the Press Release
Sixteen former Puerto Rico police officers have pleaded guilty for their roles in a criminal organization run out of the police department. The officers used their affiliation with law enforcement to commit robbery and extortion, to manipulate court records in exchange for bribes, and to sell illegal narcotics.
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.
“These 16 police officers were charged with fighting crime, protecting lives and property, and improving the quality of life in Puerto Rico,” said Assistant Attorney General Caldwell. “Instead, they used their badges and guns to do the opposite, committing crimes, endangering lives, and stealing property under the veil of police authority. This prosecution demonstrates the Justice Department’s commitment to holding all criminals accountable – including those who wear a badge. We will use every tool at our disposal, including the RICO laws, to rid our communities of corruption.”
The following 13 defendants pleaded guilty to conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act: Osvaldo Vazquez-Ruiz, 38; Orlando Sierra-Pereira, 37; Danny Nieves-Rivera, 35; Roberto Ortiz-Cintron, 35; Yovanny Crespo-Candelaria, 34; Jose Sanchez-Santiago, 32; Miguel Perez-Rivera, 35; Nadab Arroyo-Rosa, 33; Jose Flores-Villalongo, 52; Luis Suarez-Sanchez, 36; Eduardo Montañez-Perez, 29; Carlos Laureano-Cruz, 40; and Carlos Candelario-Santiago, 47. Three defendants, Ruben Casiano-Pietri, 36, Christian Valles-Collazo, 28, and Ricardo Rivera Rodriguez, 39, pleaded guilty to robbery and extortion charges. Several of the defendants also pleaded guilty to firearms charges in connection with the use of their police-issued firearms in furtherance of their crimes. At the time of their criminal conduct, Flores-Villalongo and Candelario-Santiago were sergeants with the Police of Puerto Rico (POPR), and the other defendants were police officers. Sentencing hearings are scheduled for December 2014.
According to court documents, over the course of the conspiracy, the officers worked together to conduct traffic stops and enter the homes of suspected criminals to steal money, property and drugs for their own personal enrichment. They planted evidence to make false arrests, and then extorted money from their victims in exchange for their release from custody. Additionally, in exchange for bribe payments, the officers gave false testimony, manipulated court records and failed to appear in court when required so that criminal cases would be wrongfully dismissed. The officers also sold and distributed wholesale quantities of narcotics.
As just a few examples of their criminal conduct, in April 2012, defendants Vazquez-Ruiz and Sierra-Pereira conducted a traffic stop in their capacity as police officers and stole approximately $22,000 they believed to be illegal drug proceeds. Vazquez-Ruiz later attempted to extort approximately $8,000 from an individual believed to be a drug dealer’s accomplice in exchange for promising to release a prisoner.
Further, in November 2012, defendants Sierra-Pereira, Nieves-Rivera, Ortiz-Cintron and Valles-Collazo illegally entered an apartment and stole approximately $30,000, which they believed were illegal lottery proceeds.
The defendants frequently shared with one another the proceeds they illegally obtained, and used their power, authority and official positions as police officers to promote and protect their illegal activity. Among other things, the defendants used POPR firearms, badges, patrol cars, tools, uniforms and other equipment to commit the crimes, and then concealed their illegal activity with fraudulently obtained court documents and falsified POPR paperwork that made it appear they were engaged in legitimate police work.
The case was investigated by the FBI’s San Juan Division, and prosecuted by Trial Attorneys Brian K. Kidd, Emily Rae Woods and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mariana E. Bauzá of the District of Puerto Rico.Six Former Puerto Rico Police Officers Plead Guilty to Federal Civil Rights, Obstruction of Justice and Perjury ChargesRead the Press Release
Three Puerto Rico police officers, Erick Rivera Nazario, Angel Torres Quinones and Antonio Rodriguez Caraballo today pleaded guilty to federal civil rights charges in connection with the fatal beating of 19-year-old Jose Luis Irizarry Perez, announced Acting Assistant Attorney General Molly Moran for the Civil Rights Division, United States Attorney Rosa Emilia Rodriguez-Velez for the District of Puerto Rico, and Special Agent in Charge Carlos Cases of the FBI San Juan Field Office.
These pleas, in conjunction with other recent pleas by Jimmy Rodriguez Vega, David Colon Martinez and Miguel Negron Vazquez brings the total number of Puerto Rico police officers pleading guilty to charges related to this incident to six.
According to documents filed in connection with the guilty pleas, former officer Rodriguez Vega and Lieutenant Rivera Nazario struck Irizarry Perez with their police batons while former officer Colon Martinez physically restrained Irizarry Perez during an election evening celebration at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008.
Rivera Nazario pleaded guilty to one count of depriving Irizarry Perez of his civil rights by striking him with his police baton. Torres Quinones pleaded guilty to obstruction of justice for providing misleading information to the local Puerto Rico prosecutor that initially investigated the matter. Former Sergeant Rodriguez Caraballo pleaded guilty to one count of perjury for making a false statement to the federal grand jury.
On Aug. 22, 2014, guilty pleas were entered by Colon Martinez and Negron Vazquez for their role in the case. Colon Martinez pleaded guilty to one count of making a false statement to the FBI and one count of perjury for making a false statement to the federal grand jury that investigated the incident. Negron Vazquez pleaded guilty to making a false statement to the FBI.
Rodriguez Vega pleaded guilty on March 8, 2013, to one count of depriving Irizarry Perez of his civil rights by striking him with his police baton.
“This case reflects the department’s commitment to ensuring that those officers who violate their oath by using excessive force or obstructing a federal investigation will be held accountable,” said Acting Assistant Attorney General Moran. “While the vast majority of police officers serve with the highest distinction, the Justice Department stands ready to investigate and prosecute those officers who cross the line and engage in criminal conduct.”
“We rely upon our police officers to protect and serve the community, but through their illegal actions, these officers abused their power and violated the public trust,” said U.S. Attorney Vélez. “I am hopeful that today’s pleas bring a measure of justice and closure to the victim’s family and the entire community.”
Rodriguez Vega and Rivera Nazario each face a maximum penalty of 10 years in prison and a fine of $250,000 for their convictions for violating Irizarry Perez’s civil rights.
Colon Martinez faces a maximum penalty of five years in prison and a $250,000 fine for each conviction of making a false statement to the FBI and making a false declaration to the federal grand jury.
Negron Vazquez faces a maximum penalty of five years in prison and a $250,000 fine for his conviction of making a false statement to the FBI.
Torres Quinones faces a maximum penalty of 20 years in prison and a fine of $250,000 for his conviction for obstruction of justice by providing misleading information to the local prosecutor.
Rodriguez Caraballo faces a maximum penalty of five years in prison and a $250,000 fine for his conviction for making a false declaration to the federal grand jury.
This case was investigated by the San Juan Division of the FBI and is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorneys Shan Patel and Olimpia E. Michel from the Civil Rights Division of the U.S. Department of Justice and Assistant U.S. Attorney Jose A. Contreras from the U.S. Attorney’s Office for the District of Puerto Rico.
Massillon, Ohio Landlords Agree to $850,000 Settlement to Resolve Housing Discrimination LawsuitsRead the Press Release
The Justice Department announced today that Massillon, Ohio landlords John and Mary Ruth have agreed to pay $850,000 to settle lawsuits filed by the Justice Department and other parties alleging that the Ruths discriminated on the basis of race and familial status at properties they formerly owned in Massillon. The settlement must still be approved by United States District Judge John R. Adams in the Northern District of Ohio.
The proposed settlement would resolve a lawsuit filed by the department on October 31, 2011, alleging that the Ruths and the companies through which they manage their properties had discriminated against African Americans and families with children at Yorkshire Apartments, Thackeray Ledges and Wales Ridge— three apartment complexes located in Massillon, Ohio. The settlement would also resolve related lawsuits raising similar allegations filed by Stark County, the Ohio Civil Rights Commission and several former property managers and tenants at the complexes. In an order issued on March 31, 2014, the court noted that 10 of Mr. Ruth’s former employees had testified that they were instructed to discriminate against African Americans and that other former employees had testified that they been instructed to discriminate against families with children. The court ruled that the department had presented sufficient evidence of a pattern or practice of unlawful discrimination by the defendants for the case to go to trial before a jury.
Under the terms of the settlement, the defendants will pay:
· $650,000 in damages and attorney’s fees to the plaintiffs in the lawsuits filed by the Ohio Civil Rights Commission, Stark County and several former residents and property managers;
· $175,000 in damages to 11 additional former residents and employees identified by the United States who had been harmed by the defendants’ discrimination; and
· $25,000 in a civil penalty to the United States.
“It is a sad fact that decades after the passage of the Fair Housing Act, many people still face unlawful discrimination when looking for housing,” said Molly Moran, Acting Assistant Attorney General for the Civil Rights Division. “The magnitude of this settlement makes clear that the Department of Justice will vigorously pursue violations of the Fair Housing Act.”
“The freedom of every family to live where they wish, without regard to their race or if they have kids, is basic to who we are in this country,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio. “When landlords deny that basic right, there will be consequences. We will continue to work hard to ensure that this fundamental right is protected in Ohio and across the nation.”
The settlement also requires that the defendants hire an independent management company to manage all of their rental properties, receive training on the requirements of the Fair Housing Act and report to the department for a period of three years on their compliance with the settlement. The settlement also requires the defendants to hire a third party to periodically test their properties to ensure compliance with the Fair Housing Act.
Fighting illegal housing discrimination is a top priority of the Department of Justice. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] , or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp .
Louisiana Psychiatrist Sentenced to Serve More Than Seven Years in Prison for His Role in $258 Million Medicare Fraud SchemeRead the Press Release
A Louisiana psychiatrist was sentenced in federal court in Baton Rouge, Louisiana, today to serve 86 months in prison for his role in a $258.5 million Medicare fraud scheme involving partial hospitalization psychiatric services. He was further ordered to pay $43.5 million in restitution and to forfeit all proceeds from the fraudulent scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana, Special Agent in Charge Mike Fields of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division and Louisiana State Attorney General James D. “Buddy” Caldwell made the announcement. Chief U.S. District Court Judge Brian A. Jackson of the Middle District of Louisiana imposed the sentence.
According to documents filed in the case, Zahid Imran, M.D., 56, of Baton Rouge, served as the medical director of Shifa Community Mental Health Center of Baton Rouge, and co-owned Serenity Center of Baton Rouge and Shifa Community Mental Health Center of Texas. As part of the scheme, Imran admitted mentally ill patients to the facilities, some of whom were inappropriate for partial hospitalization, and then re-certified the patients’ appropriateness for the program in an effort to continue to bill Medicare for services. To support the fraudulent Medicare billing, Imran and others falsified patient treatment records to reflect services on dates when no such services were provided. Imran pleaded guilty on May 13, 2014, to conspiracy to commit health care fraud.
Law enforcement’s 2011 investigation into the three community mental health centers has resulted in 17 convictions of individuals employed by the facilities, including therapists, marketers, administrators, owners and the medical director. The companies billed Medicare for partial hospitalization program services for the mentally ill that were unnecessary or never provided over a period of approximately seven years. The companies, collectively, submitted more than $258 million in claims to Medicare during this period. Medicare paid approximately $43.5 million on those claims.
The case is being investigated by HHS-OIG, the FBI and the Medicaid Fraud Control Unit of the Louisiana Attorney General’s Office, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. The case is being prosecuted by Trial Attorneys Abigail Taylor and Dustin M. Davis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shubhra Shivpuri of the Middle District of Louisiana.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .Justice Department Announces Successful Resolution of Consent Judgment Involving Detroit Police DepartmentRead the Press Release
The Justice Department today announced the U.S. District Court for the Eastern District of Michigan’s termination of the consent judgment relating to the Detroit Police Department’s (DPD) use of force and arrest and witness detention practices. The Justice Department and the city of Detroit jointly sought the termination of the consent judgment and approval of a Transition Agreement maintaining federal oversight of the DPD for an additional 18 months. The transition agreement starts a new chapter of reform and accountability for the DPD as it works in collaboration with the Justice Department to better ensure constitutional policing, promote community confidence, and improve public safety in the city of Detroit. The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Michigan have worked cooperatively throughout the duration of this matter.
The consent judgment was entered in 2003 and required comprehensive reforms of the DPD to remedy its patterns and practices of use of excessive force and unlawful detentions and arrests identified by the Justice Department following a two-and-a-half-year investigation. A second, concurrent consent judgment was also entered addressing unconstitutional conditions of confinement in the DPD’s holding cells. A court-appointed monitor was selected to evaluate the city’s compliance with both judgments.
Through substantial compliance with the consent judgment, the DPD has significantly reformed its use of force and witness detention practices. The DPD has effectively eliminated the unconstitutional practices that made the consent judgment necessary through comprehensive policy revision; enhanced training, supervision and investigative practices; and improved accountability systems, including the development of a comprehensive risk management system. The effects of these changes are evident in the reduction of the DPD’s officer-involved shootings and other uses of force, and the abolition of its past practice of detaining witnesses during investigations of serious crimes.
"Today's transition agreement with the Detroit Police Department is yet another example that law enforcement agencies can change to better serve their communities when they commit to meaningful reform," said Attorney General Eric Holder. "The Department of Justice has entered into agreements with police departments large and small across the country over the past five years and I applaud Detroit for setting an example by showing that these agreements can create the constitutional and community policing models that all communities deserve."
“The court’s order today to terminate the consent judgment and move to a transition agreement is an important step, but does not end the Department of Justice’s oversight of the Detroit Police Department,” said U.S. Attorney Barbara McQuade for the Eastern District of Michigan. “We are pleased that the Detroit Police Department has made fundamental changes in its practices and procedures, but we will continue to monitor for an additional 18 months to ensure that these changes are sustained and that the people of Detroit receive the constitutional policing that they deserve.”
Although the DPD is greatly improved, and the city had substantially complied with the requirements of the consent judgment, the Justice Department and the city acknowledged that additional work remains to be done to ensure that the consent judgment’s reforms are fully realized and maintained. The transition agreement approved today by the court provides an opportunity for the DPD to continue that work and demonstrate to the Justice Department and the people of Detroit that it can satisfy its mission of promoting public safety in a manner that is fair, just and constitutional.
The other concurrent consent judgment relating to the conditions of confinement in DPD holding cells was terminated earlier this year after the city, which had fully complied with that judgment’s terms, completed the transfer of custodial responsibility for all DPD detainees to the Michigan Department of Corrections.
Under the 1994 Violent Crime Control and Law Enforcement Act, the Justice Department has the authority to file civil suits against law enforcement agencies that engage in a pattern of misconduct. The department also has the authority to file suit against law enforcement agencies that receive federal funds and engage in a pattern of discrimination. For more information on the Justice Department’s Civil Rights Division or the Detroit consent judgments, visit www.justice.gov/crt or call the U.S. Attorney’s Office Civil Rights hotline at (313) 226-9151. Community members may also email the Civil Rights Division at [email protected] .
Former Investment Company Executives Sentenced for Roles in $18 Million Ponzi SchemeRead the Press Release
The former Hanover Corporation chief financial officer and a former Hanover salesman were sentenced today to serve 60 months in prison and 70 months in prison respectively, and ordered to pay $14,454,999.19 in restitution, for their roles in an $18 million Ponzi scheme. Hanover’s former chief executive officer was previously sentenced to 14 years in prison and ordered to pay $14,784,983.75 in restitution in this case.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David Rivera of the Middle District of Tennessee, Special Agent in Charge Todd McCall of the FBI’s Memphis Division and Special Agent in Charge Christopher Henry of the Internal Revenue Service-Criminal Investigation (IRS-CI) in Nashville made the announcement today after the sentences were handed down by U.S. District Judge Todd J. Campbell in the Middle District of Tennessee.
According to court documents, Daryl Bornstein, 55, of Kinston Springs, Tennessee, a former Hanover salesman, and Robert Haley, 55, of Lebanon, Tennessee, the former Hanover CFO, colluded with Hanover CEO, Terry Kretz, to steal $18 million of investors’ money in a Ponzi scheme. Specifically, Kretz and Bornstein solicited investors with the promise that the monies would be invested in stock options and startup companies. More than half of the money, however, was actually used to repay earlier investors, to pay Hanover’s salaries and overhead, and to benefit the defendants personally. Such personal benefits included golf memberships and $100,000 in cash for Bornstein. Kretz and Bornstein also issued Hanover promissory notes to reimburse individuals who had previously lost money investing in ventures recommended by Bornstein before he joined Hanover. In some cases, these former investors contributed new money to Hanover, therefore unwittingly paying off their old investment losses with their new investments.
Haley furthered the fraud by sending investors checks for purported “interest,” knowing that they were simply monies recently taken in from new investors. He also prepared a false balance sheet that overstated Hanover’s financial health to be shown to investors.
The case was investigated by the FBI, IRS-CI, Tennessee Bureau of Investigation, and Tennessee Department of Commerce and Insurance. The case is being prosecuted by Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Scarlett S. Nokes of the Middle District of Tennessee.Florida Man Sentenced for Filing False Claims with Internal Revenue ServiceRead the Press Release
A Lighthouse Point, Florida, man was sentenced today to serve 12 months and one day in prison for filing a false claim for a tax refund with the Internal Revenue Service (IRS), Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division and U.S. Attorney Wifredo Ferrer for the Southern District of Florida announced.
Bradley Bowman was also ordered to pay $300,403 in restitution to the IRS and to serve three years of supervised release. According to court documents, in 2009, Bowman submitted to the IRS a false individual income tax return for tax year 2005 that fraudulently claimed a refund of $299,024. Bowman engaged Penny Jones, who is currently serving 12 years in prison in a related case involving more than 380 false returns, to prepare this false return. Bowman fraudulently claimed his gross income was $447,036 and then falsely claimed that all of his income was withheld to satisfy his income tax liabilities. Bowman pleaded guilty to this charge on May 27.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Trial Attorney Greg Bailey of the Tax Division and Assistant U.S. Attorney Bertha Mitrani for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Eight Alleged Members and Associates of the Two Six Nation Street Gang Indicted for Racketeering ConspiracyRead the Press Release
Four members of the Two Six Nation street gang and four of their associates have been indicted for their roles in a racketeering conspiracy spanning more than 20 years, as well as murder and drug trafficking charges.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David A. Capp of the Northern District of Indiana, Special Agent in Charge Carl Vasilko of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Chicago Field Division, Special Agent in Charge Jack Riley of the Drug Enforcement Administration’s (DEA) Chicago Field Division and Special Agent in Charge W. Jay Abott of the FBI’s Indianapolis Division made the announcement.
“Today’s action reflects the most recent in the department’s continuing efforts to free communities within East Chicago, Gary and Chicago from the scourge of gang violence and drug dealing,” said Assistant Attorney General Caldwell. “Over the years, the U.S. Attorneys’ Offices and the Criminal Division have partnered to use RICO and other federal charges to disrupt and dismantle violent gangs like the Imperial Gangsters, the Latin Kings and now the Two Six Nation. These rolling prosecutions of violent gangs in this region demonstrate the department’s commitment to ensure that no gang is able to maintain a foothold in these communities.”
“This is our third use of the federal RICO statute against violent street gangs operating in northwest Indiana,” said U.S. Attorney Capp. “This indictment was the result of extensive federal-local law enforcement work on both sides of the state border. Our investigations continue and we will not hesitate to utilize the power of the RICO statute to remove these individuals from the streets.”
The second superseding indictment returned by a federal grand jury on Aug. 21, 2014, and unsealed today, charges Adron Herschel Tancil, aka “Awol,” 36, of East Chicago, Indiana; Jesus Valentin Fuentes, aka “Chu Chu,” 39, of Gary, Indiana; Frank Perez Jr., aka “Pumpkin,” 33, of Verona, Pennsylvania; and Anthony Cresencio Aguilera, aka “P-nut,” 35, of Portage, Indiana with RICO conspiracy and conspiracy to engage in drug trafficking, including marijuana, cocaine, crack cocaine, heroin and ecstasy. Also charged in the narcotics conspiracy are Oscar Cosme, aka “Cos,” 41, of East Chicago; Ester Carrera, aka “Mama D,” 61, of Gary; Paul Brock, aka “Big Brock,” 27, of Gary; and Alma Delia Carrera, 28, of Gary. Both the RICO and narcotics conspiracies allege criminal conduct spanning more than 20 years, from January 1992 to the present.
The indictment further charges defendants Tancil, Fuentes and Cosme with the May 16, 2003, homicide of Julio Cartagena in East Chicago. Kiontay Kyare Pennington has already pleaded guilty to murder in aid of racketeering for his role in this homicide.
In addition, the indictment charges Frank Perez with the July 13, 1999, murder of Jose Pena Jr. in Whiting, Indiana.
The charges contained in an indictment are merely accusations and all persons charged are presumed innocent until and unless proven guilty in court.
This case is being investigated by the ATF, DEA, FBI, East Chicago Police Department and Whiting Police Department, with assistance from the Chicago Police Department, Gary Police Department, Hammond Police Department, Highland Police Department and the Lake County High Intensity Drug Trafficking Area task force. Assistance was also provided by the U.S. Attorney’s Office for the Western District of Pennsylvania.
This case is being prosecuted by Assistant U.S. Attorney David J. Nozick for the Northern District of Indiana and Trial Attorney Andrew L. Creighton of the Criminal Division’s Organized Crime and Gang Section.
California “Vendor” in Identity Theft and Credit Card Fraud Organization Sentenced to More Than Eight Years in PrisonRead the Press Release
A northern California man who served as an information and document vendor in the identity theft and credit card fraud ring known as “Carder.su” was sentenced yesterday to serve 100 months in federal prison. He was further ordered to pay approximately $50.5 million in restitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI) in Las Vegas made the announcement. U.S. District Judge Andrew P. Gordon of the District of Nevada imposed the sentence.
“Carder.su is a criminal organization, and we used the same mob-busting laws and investigative techniques we’ve used with other organized crime networks to dismantle the fraud ring,” said Assistant Attorney General Caldwell. “The new face of organized crime is largely cyber-based, and this case demonstrates the department’s ability to pursue members of these organizations wherever we find them.”
“The structure of the Carder.su organization was sophisticated and designed to prevent attack by rival organizations and to avoid detection by law enforcement,” said U.S. Attorney Bogden. “Its members had defined roles and were responsible for the theft of over $50 million. We are working diligently with our law enforcement partners to ensure that the people who commit these high-tech crimes are put out of business.”
“As this multi-year sentence makes clear, individuals like this defendant who traffic in stolen identities and compromised credit card information should expect to face the full weight of the law,” said HSI Assistant Special Agent in Charge Harris. “This type of fraud has reached epidemic proportions and the economic fallout from these crimes affects us all. HSI will continue to work closely with its law enforcement partners to see that those involved are brought to justice.”
Makyl Haggerty, aka “Wave” and “G5,” 24, of Oakland, Calif., admitted in his plea agreement that in December 2009, he became associated with the Carder.su organization, a criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications, and committed money laundering, narcotics trafficking, and various types of computer crime. Specifically, Haggerty operated as a vendor on the organization’s websites using the “Wave” and “G5” nicknames, and sold approximately 1,000 counterfeit identification documents and counterfeit credit cards to other Carder.su members. Haggerty manufactured and sold counterfeit driver’s licenses for at least 15 states and British Columbia.
Fifty-six individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 25 individuals have been convicted and the rest are either fugitives or are pending trial. Haggerty pleaded guilty in February to one count of participation in a racketeer influenced corrupt organization.
The cases were investigated by HSI and the U.S. Secret Service, and are being prosecuted by Trial Attorney Jonathan Ophardt of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan of the District of Nevada.
This prosecution is part of efforts underway by President Barack Obama’s 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 about the task force visit: www.stopfraud.com .
Federal Court Bars Missouri Man from Preparing Federal Tax ReturnsRead the Press Release
A federal court has permanently barred William Naes of St. Charles, Missouri, from preparing federal tax returns for others, the Justice Department announced today. The permanent injunction order, to which Naes consented, was entered by U.S. District Judge E. Richard Webber of the U.S. District Court for the Eastern District of Missouri.
The government alleged that Naes prepared returns that fraudulently claimed tax deductions for his customers, including bogus deductions for charitable contributions and unreimbursed employee business expenses. According to the complaint, Naes also fabricated business expenses on Schedules C-Profit or Loss From Business, concocted a fake business for at least one customer and failed to properly identify himself as the paid preparer on many of the returns he prepared. As a result of his conduct, many of Naes’ customers paid less in taxes than they owed or improperly received tax refunds.
Return preparer fraud is one of the 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 department’s Tax Division has obtained more than 500 injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the 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.
Related Materials:
United States v. William Naes
Stipulated Order for Permanent Injunction Against William NaesBloods Gang Member Sentenced to 10 Years in Prison for Racketeering Conspiracy in TennesseeRead the Press Release
A Tennessee Bloods gang member was sentenced today to serve 10 years in prison, to be followed by three years of supervised release for his role in a violent racketeering conspiracy.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David Rivera of the Middle District of Tennessee and Special Agent in Charge Glenn N. Anderson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division made the announcement. The sentence was imposed by U.S. District Judge Aleta Trauger of the Middle District of Tennessee.
Kenneth Gaddie, aka “K.G.,” 24, of Nashville, Tennessee, pleaded guilty on May 23, 2014, and was the last of 37 gang members to be convicted in the Middle District of Tennessee for involvement in the Bloods gang.
According to court documents, from 2006 through December 2011, Gaddie was a member of the Bloods gang. He and other Bloods gang members committed multiple acts of murder, robbery and narcotics trafficking on behalf of the gang.
Gaddie and other Bloods gang members met at various locations in the Nashville area, including Shelby Park, Cedar Hill Park and the Galaxy Star Drug Awareness and Gang Prevention Center, on a regular basis to report on gang-related business, collect dues, commit disciplinary actions against fellow gang members, discuss acts of violence against rival gang members and initiate or “jump in” new members by beating them.
Further, according to court documents, on June 25, 2008, Gaddie shot and wounded an individual on behalf of the gang. Less than one month after this incident, on July 17, 2008, Gaddie and others shot at another individual.
The investigation was conducted by the ATF; the Metropolitan Nashville Police Department; the U.S. Marshals Service; the La Vergne, Tennessee, Police Department; and the Davidson County, Tennessee, Sheriff’s Office. The case was prosecuted by Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Scarlett S. Nokes of the Middle District of Tennessee.Bank of America to Pay $16.65 Billion in Historic Justice Department Settlement for Financial Fraud Leading up to and During the Financial CrisisRead the Press Release
Attorney General Eric Holder and Associate Attorney General Tony West announced today that the Department of Justice has reached a $16.65 billion settlement with Bank of America Corporation – the largest civil settlement with a single entity in American history — to resolve federal and state claims against Bank of America and its former and current subsidiaries, including Countrywide Financial Corporation and Merrill Lynch. As part of this global resolution, the bank has agreed to pay a $5 billion penalty under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) – the largest FIRREA penalty ever – and provide billions of dollars of relief to struggling homeowners, including funds that will help defray tax liability as a result of mortgage modification, forbearance or forgiveness. The settlement does not release individuals from civil charges, nor does it absolve Bank of America, its current or former subsidiaries and affiliates or any individuals from potential criminal prosecution.
“This historic resolution - the largest such settlement on record - goes far beyond ‘the cost of doing business,’” said Attorney General Holder. "Under the terms of this settlement, the bank has agreed to pay $7 billion in relief to struggling homeowners, borrowers and communities affected by the bank’s conduct. This is appropriate given the size and scope of the wrongdoing at issue.”
This settlement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force and its Residential Mortgage-Backed Securities (RMBS) Working Group, which has recovered $36.65 billion to date for American consumers and investors.
“At nearly $17 billion, today’s resolution with Bank of America is the largest the department has ever reached with a single entity in American history,” said Associate Attorney General West. “But the significance of this settlement lies not just in its size; this agreement is notable because it achieves real accountability for the American people and helps to rectify the harm caused by Bank of America’s conduct through a $7 billion consumer relief package that could benefit hundreds of thousands of Americans still struggling to pull themselves out from under the weight of the financial crisis.”
The Justice Department and the bank settled several of the department’s ongoing civil investigations related to the packaging, marketing, sale, arrangement, structuring and issuance of RMBS, collateralized debt obligations (CDOs), and the bank’s practices concerning the underwriting and origination of mortgage loans. The settlement includes a statement of facts, in which the bank has acknowledged that it sold billions of dollars of RMBS without disclosing to investors key facts about the quality of the securitized loans. When the RMBS collapsed, investors, including federally insured financial institutions, suffered billions of dollars in losses. The bank has also conceded that it originated risky mortgage loans and made misrepresentations about the quality of those loans to Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA).
Of the record-breaking $16.65 billion resolution, almost $10 billion will be paid to settle federal and state civil claims by various entities related to RMBS, CDOs and other types of fraud. Bank of America will pay a $5 billion civil penalty to settle the Justice Department claims under FIRREA. Approximately $1.8 billion will be paid to settle federal fraud claims related to the bank’s origination and sale of mortgages, $1.03 billion will be paid to settle federal and state securities claims by the Federal Deposit Insurance Corporation (FDIC), $135.84 million will be paid to settle claims by the Securities and Exchange Commission. In addition, $300 million will be paid to settle claims by the state of California, $45 million to settle claims by the state of Delaware, $200 million to settle claims by the state of Illinois, $23 million to settle claims by the Commonwealth of Kentucky, $75 million to settle claims by the state of Maryland, and $300 million to settle claims by the state of New York.
Bank of America will provide the remaining $7 billion in the form of relief to aid hundreds of thousands of consumers harmed by the financial crisis precipitated by the unlawful conduct of Bank of America, Merrill Lynch and Countrywide. That relief will take various forms, including principal reduction loan modifications that result in numerous homeowners no longer being underwater on their mortgages and finally having substantial equity in their homes. It will also include new loans to credit worthy borrowers struggling to get a loan, donations to assist communities in recovering from the financial crisis, and financing for affordable rental housing. Finally, Bank of America has agreed to place over $490 million in a tax relief fund to be used to help defray some of the tax liability that will be incurred by consumers receiving certain types of relief if Congress fails to extend the tax relief coverage of the Mortgage Forgiveness Debt Relief Act of 2007.
An independent monitor will be appointed to determine whether Bank of America is satisfying its obligations. If Bank of America fails to live up to its agreement by Aug. 31, 2018, it must pay liquidated damages in the amount of the shortfall to organizations that will use the funds for state-based Interest on Lawyers’ Trust Account (IOLTA) organizations and NeighborWorks America, a non-profit organization and leader in providing affordable housing and facilitating community development. The organizations will use the funds for foreclosure prevention and community redevelopment, legal assistance, housing counselling and neighborhood stabilization.
As part of the RMBS Working Group, the U.S. Attorney’s Office for the District of New Jersey conducted a FIRREA investigation into misrepresentations made by Merrill Lynch to investors in 72 RMBS throughout 2006 and 2007. As the statement of facts describes, Merrill Lynch regularly told investors the loans it was securitizing were made to borrowers who were likely and able to repay their debts. Merrill Lynch made these representations even though it knew, based on the due diligence it had performed on samples of the loans, that a significant number of those loans had material underwriting and compliance defects - including as many as 55 percent in a single pool. In addition, Merrill Lynch rarely reviewed the unsampled loans to ensure that the defects observed in the samples were not present throughout the remainder of the pools. Merrill Lynch also disregarded its own due diligence and securitized loans that the due diligence vendors had identified as defective. This practice led one Merrill Lynch consultant to “wonder why we have due diligence performed” if Merrill Lynch was going to securitize the loans “regardless of issues.”
“In the run-up to the financial crisis, Merrill Lynch bought more and more mortgage loans, packaged them together, and sold them off in securities – even when the bank knew a substantial number of those loans were defective,” said U.S. Attorney Paul J. Fishman for the District of New Jersey. “The failure to disclose known risks undermines investor confidence in our financial institutions. Today’s record-breaking settlement, which includes the resolution of our office’s imminent multibillion-dollar suit for FIRREA penalties, reflects the seriousness of the lapses that caused staggering losses and wider economic damage.”
This settlement also resolves the complaint filed against Bank of America in August 2013 by the U.S. Attorney’s Office for the Western District of North Carolina concerning an $850 million securitization. Bank of America acknowledges that it marketed this securitization as being backed by bank-originated “prime” mortgages that were underwritten in accordance with its underwriting guidelines. Yet, Bank of America knew that a significant number of loans in the security were “wholesale” mortgages originated through mortgage brokers and that based on its internal reporting, such loans were experiencing a marked increase in underwriting defects and a noticeable decrease in performance. Notwithstanding these red flags, the bank sold these RMBS to federally backed financial institutions without conducting any third party due diligence on the securitized loans and without disclosing key facts to investors in the offering documents filed with the SEC. A related case concerning the same securitization was filed by the SEC against Bank of America and is also being resolved as part of this settlement.
“Today’s settlement attests to the fact that fraud pervaded every level of the RMBS industry, including purportedly prime securities, which formed the basis of our filed complaint,” said U.S. Attorney Anne M. Tompkins for the Western District of North Carolina. “Even reputable institutions like Bank of America caved to the pernicious forces of greed and cut corners, putting profits ahead of their customers. As we deal with the aftermath of the financial meltdown and rebuild our economy, we will hold accountable firms that contributed to the economic crisis. Today’s settlement makes clear that my office will not sit idly while fraud occurs in our backyard.”
The U.S. Attorney’s Office for the Central District of California has been investigating the origination and securitization practices of Countrywide as part of the RMBS Working Group effort. The statement of facts describes how Countrywide typically represented to investors that it originated loans based on underwriting standards that were designed to ensure that borrowers could repay their loans, although Countrywide had information that certain borrowers had a high probability of defaulting on their loans. Countrywide also concealed from RMBS investors its use of “shadow guidelines” that permitted loans to riskier borrowers than Countrywide’s underwriting guidelines would otherwise permit. Countrywide’s origination arm was motivated by the “saleability” of loans and Countrywide was willing to originate “exception loans” (i.e., loans that fell outside of its underwriting guidelines) so long as the loans, and the attendant risk, could be sold. This led Countrywide to expand its loan offerings to include, for example, “Extreme Alt-A” loans, which one Countrywide executive described as a “hazardous product,” although Countrywide failed to tell RMBS investors that these loans were being originated outside of Countrywide’s underwriting guidelines. Countrywide knew that these exception loans were performing far worse than loans originated without exceptions, although it never disclosed this fact to investors.
“The Central District of California has taken the lead in the department’s investigation of Countrywide Financial Corporation,” said Acting U.S. Attorney Stephanie Yonekura for the Central District of California. “Countrywide’s improper securitization practices resulted in billions of dollars of losses to federally-insured financial institutions. We are pleased that this investigation has resulted in a multibillion-dollar recovery to compensate the United States for the losses caused by Countrywide’s misconduct.”
In addition to the matters relating to the securitization of toxic mortgages, today’s settlement also resolves claims arising out of misrepresentations made to government entities concerning the origination of residential mortgages.
The U.S. Attorney’s Office for the Southern District of New York, along with the Federal Housing Finance Agency’s Office of Inspector General and the Special Inspector General for the Troubled Asset Relief Program, conducted investigations into the origination of defective residential mortgage loans by Countrywide’s Consumer Markets Division and Bank of America’s Retail Lending Division as well as the fraudulent sale of such loans to the government sponsored enterprises Fannie Mae and Freddie Mac (the “GSEs”). The investigation into these practices, as well as three private whistleblower lawsuits filed under seal pursuant to the False Claims Act, are resolved in connection with this settlement. As part of the settlement, Countrywide and Bank of America have agreed to pay $1 billion to resolve their liability under the False Claims Act. The FIRREA penalty to be paid by Bank of America as part of the settlement also resolves the government’s claims against Bank of America and Countrywide under FIRREA for loans fraudulently sold to Fannie Mae and Freddie Mac. In addition, Countrywide and Bank of America made admissions concerning their conduct, including that they were aware that many of the residential mortgage loans they had made to borrowers were defective, that many of the representations and warranties they made to the GSEs about the quality of the loans were inaccurate, and that they did not self-report to the GSEs mortgage loans they had internally identified as defective.
“For years, Countrywide and Bank of America unloaded toxic mortgage loans on the government sponsored enterprises Fannie Mae and Freddie Mac with false representations that the loans were quality investments,” said U.S. Attorney Preet Bharara for the Southern District of New York. “This office has already obtained a jury verdict of fraud and a judgment for over a billion dollars against Countrywide and Bank of America for engaging in similar conduct. Now, this settlement, which requires the bank to pay another billion dollars for false statements to the GSEs, continues to send a clear message to Wall Street that mortgage fraud cannot be a cost of doing business.”
The U.S. Attorney’s Office for the Eastern District of New York, together with its partners from the Department of Housing and Urban Development (HUD), conducted a two-year investigation into whether Bank of America knowingly made loans insured by the FHA in violation of applicable underwriting guidelines. The investigation established that the bank caused the FHA to insure loans that were not eligible for FHA mortgage insurance. As a result, HUD incurred hundreds of millions of dollars of losses. Moreover, many of Bank of America’s borrowers have defaulted on their FHA mortgage loans and have either lost or are in the process of losing their homes to foreclosure.
“As a Direct Endorser of FHA insured loans, Bank of America performs a critical role in home lending,” said U.S. Attorney Loretta E. Lynch for the Eastern District of New York. “It is a gatekeeper entrusted with the authority to commit government funds earmarked for facilitating mortgage lending to first-time and low-income homebuyers, senior citizen homeowners and others seeking or owning homes throughout the nation, including many who live in the Eastern District of New York. In obtaining a payment of $800 million and sweeping relief for troubled homeowners, we have not just secured a meaningful remedy for the bank’s conduct, but have sent a powerful message of deterrence.”
“Bank of America failed to make accurate and complete disclosure to investors and its illegal conduct kept investors in the dark,” said Rhea Kemble Dignam, Regional Director of the SEC’s Atlanta Office. “Requiring an admission of wrongdoing as part of Bank of America’s agreement to resolve the SEC charges filed today provides an additional level of accountability for its violation of the federal securities laws.”
“Today’s settlement with Bank of America is another important step in the Obama Administration’s efforts to provide relief to American homeowners who were hurt during the housing crisis,” said U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro. “This global settlement will strengthen the FHA fund and Ginnie Mae, and it will provide $7 billion in consumer relief with a focus on helping borrowers in areas that were the hardest hit during the crisis. HUD will continue working with the Department of Justice, state attorneys general, and other partners to take appropriate action to hold financial institutions accountable and provide consumers with the relief they need to stay in their homes. HUD remains committed to solidifying the housing recovery and creating more opportunities for Americans to succeed.”
“Bank of America and the banks it bought securitized billions of dollars of defective mortgages,” said Acting Inspector General Michael P. Stephens of the FHFA-OIG. “Investors, including Fannie Mae and Freddie Mac, suffered enormous losses by purchasing RMBS from Bank of America, Countrywide and Merrill Lynch not knowing about those defects. Today’s settlement is a significant, but by no means final step by FHFA-OIG and its law enforcement partners to hold accountable those who committed acts of fraud and deceit.”
The attorneys general of California, Delaware, Illinois, Kentucky, Maryland and New York also conducted related investigations that were critical to bringing about this settlement. In addition, the settlement resolves investigations conducted by the Securities and Exchange Commission (SEC) and litigation filed by the Federal Deposit Insurance Company (FDIC).
The RMBS Working Group is a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis. The RMBS Working Group brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, 10 U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than 10 state attorneys general offices around the country.
The RMBS Working Group is led by Director Geoffrey Graber and five co-chairs: Assistant Attorney General for the Civil Division Stuart Delery, Assistant Attorney General for the Criminal Division Leslie Caldwell, Director of the SEC’s Division of Enforcement Andrew Ceresney, U.S. Attorney for the District of Colorado John Walsh and New York Attorney General Eric Schneiderman.
Investigations were led by Assistant U.S. Attorneys Leticia Vandehaar of the District of New Jersey; Dan Ryan and Mark Odulio of the Western District of North Carolina; George Cardona and Lee Weidman of the Central District of Carolina; Richard Hayes and Kenneth Abell of the Eastern District of New York; and Pierre Armand and Jaimie Nawaday of the Southern District of New York.
Learn more about the RMBS Working Group and the Financial Fraud Enforcement Task Force at: www.stopfraud.gov
Related Materials:
Settlement Agreement
Annex 1 - Statement of Facts
Annex 2 - Consumer Relief
Annex 2 - Exhibit 1 - Loan List
Annex 2 - Exhibit 2 - Model VA Agreement
Annex 3 - Tax Fund
Annex 4 - Transaction List
Exhibit A--FDIC
Exhibit B - SEC Bank of America Settlement DocumentsMichigan Home Health Agency Owner Pleads Guilty to Participating in $22 Million Medicare Fraud SchemeRead the Press Release
A greater Detroit-area owner of three home health agencies pleaded guilty today for his role in a $22 million home health care fraud scheme.
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, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office and Acting Special Agent in Charge Jarod Koopman of the Internal Revenue Service – Criminal Investigation (IRS-CI) made the announcement.
According to information contained in plea documents, Muhammad Aamir, 43, of Bloomfield Hills, Michigan, admitted that, beginning in 2008 and continuing through January 2013, he conspired with others to bill Medicare for home health care services that were not actually rendered, not medically necessary, and procured through paying illegal kickbacks.
Aamir admitted that he and his conspirators at three home health agencies – Prestige Home Health Services Inc. and Platinum Home Health Services Inc., both located in Troy, Michigan, and Empirical Home Health Care Inc., located in Farmington Hills, Michigan – paid kickbacks to patient recruiters to obtain identifying information of Medicare beneficiaries and then fraudulently billed Medicare. Aamir and others fabricated and falsified medical documents reflecting or supporting purported physical therapy and other services – including home health certifications and plans of care, therapy notes, evaluations, recertifications, discharges and other records – making it appear that the services had been provided and were medically necessary, when in fact they were not. The three home health care agencies then billed Medicare for those services.
Aamir admitted that he submitted or caused the submission of false claims to Medicare, which in turn caused Medicare to pay approximately $15,118,254. According to court records, the conspiracy resulted in the submission of fraudulent claims that caused Medicare to pay more than $22 million.
Aamir pleaded guilty before U.S. District Judge Bernard A. Friedman in the Eastern District of Michigan to one count of conspiracy to commit health care fraud and one count of filing a false or fraudulent tax statement. Sentencing has been scheduled for Jan. 13, 2015.
This case was investigated by the FBI, HHS-OIG, and IRS-CI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorneys Niall M. O’Donnell and James McDonald 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 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Justice Department Sues to Stop South Florida Tax Return Preparer Engaged in Fraud and Earned Income Credit SchemesRead the Press Release
The United States has asked a federal court in Miami to permanently bar a South Florida man and his two Miami businesses, Ebenezer Tax Services Inc. and Primo Tax Service Inc., from preparing federal income tax returns for others, the Justice Department announced today. He is alleged to have defrauded the government out of more than $20 million.
Ernice Joseph, of Broward County, Florida, and his businesses are alleged to have prepared federal income tax returns that unlawfully understate income tax liabilities and overstate refunds through a variety of schemes. The complaint alleges that Joseph and his businesses prepared returns that unlawfully claim the Earned Income Tax Credit by reporting fictitious businesses or business income on clients’ Schedule C – Profit or Loss From Business. Joseph and his businesses prepare returns that claim education and other credits to which the taxpayers are not entitled in order to overstate their refunds. According to the complaint, the Internal Revenue Service (IRS) examined 76 returns prepared by Joseph and/or Ebenezer Tax Services and found that 74 contained a deficiency. The complaint alleges that, altogether, Joseph and Ebenezer Tax Service’s activities may have caused more than $20 million in loss to the U.S. Treasury. In addition, the complaint alleges that the revenue lost from Primo Tax Service’s activities could exceed $25 million.
Return-preparer fraud is one of the 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 fraudulent 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.
Related Materials:
United States v. Ernice Joseph, et al.
Complaint for Permanent InjunctionJustice Department Reaches Agreement with the City of Baltimore to Prevent Disability DiscriminationRead the Press Release
The Justice Department today announced that it has reached an agreement with the city of Baltimore, Maryland, to end hiring practices that discriminate against people with disabilities. The agreement, filed as a consent decree along with a complaint in the U.S. District Court for the District of Maryland, resolves allegations by the department that the city engaged in a pattern or practice of discrimination under the Americans with Disabilities Act (ADA). Title I of the ADA prohibits employers from discriminating against individuals on the basis of disability in various aspects of employment, including hiring.
The department alleges that the city required job applicants, including an individual complainant, to submit to a medical examination and answer disability-related inquiries before the city made conditional offers of employment. Under the ADA, employers may not require applicants to submit to medical exams or answer disability-related inquiries before making conditional offers of employment. The department also alleges that the city refused to hire the complainant for a fire dispatcher position because of her disability, even though she was already working successfully as a dispatcher elsewhere and required no accommodations.
The consent decree must be approved by the court, and requires the city to:
· pay $65,000 to the complainant in compensatory damages;
· adopt new policies and procedures regarding the administration of pre-employment medical examinations and inquiries;
· provide training on the ADA to all employees who participate in making personnel decisions related to pre-employment medical examinations and inquiries;
· ensure that the city’s contract with any medical examiner provides that the examiner is required to comply with the ADA in conducting medical examinations and certify that it has reviewed ADA training materials;
· provide periodic reports to the department on compliance; and
· designate an employee to address ADA compliance matters.
“The Justice Department will not tolerate discriminatory, outdated stereotypes that prevent individuals with disabilities from being hired for positions for which they are qualified,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.
Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Berkshire Hathaway to Pay $896,000 Civil Penalty for Violating Antitrust Premerger Notification RequirementsRead the Press Release
Berkshire Hathaway Inc. has agreed to pay an $896,000 civil penalty to settle charges that it violated premerger reporting and waiting requirements when it acquired voting securities of USG Corp., the Department of Justice announced today.
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission, filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against Berkshire Hathaway for violating the notification requirements of the Hart-Scott-Rodino (HSR) Act of 1976. At the same time, the department filed a proposed settlement that, if approved by the court, will settle the charges.
Berkshire Hathaway is a Delaware corporation with its headquarters in Omaha, Nebraska. As a result of its acquisition of USG voting securities in December 2013, Berkshire Hathaway held approximately 28 percent of USG voting securities, valued at more than $950 million.
USG is a Delaware corporation with its headquarters in Chicago, Illinois.The HSR Act of 1976, an amendment to the Clayton Act, imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo premerger antitrust review.
Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the Department of Justice. For a party in violation of the HSR Act the maximum civil penalty is $16,000 a day.
Samsung Electronics America Agrees to Pay $2.3 Million to Resolve False Claims Act AllegationsRead the Press Release
Samsung Electronics America Inc. (Samsung) has agreed to pay $2.3 million to resolve allegations that it caused the submission of false claims for products sold on General Service Administration (GSA) Multiple Award Schedule (MAS) contracts in violation of the Trade Agreements Act of 1979 (TAA), the Justice Department announced today. Samsung is an electronics distributor and marketer headquartered in Ridgefield Park, New Jersey.
“The Department of Justice is committed to protecting public funds and guarding against abuse of federal procurement programs,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “This settlement upholds important trade priorities by ensuring that the United States only uses its buying power to purchase from countries that trade fairly with us.”
MAS contracts are contracts awarded by GSA to multiple companies supplying comparable products and services. Once GSA negotiates and awards the contract, any federal agency may purchase under it. Like many other federal procurement contracts, GSA MAS contracts require the vendor to certify that all products it offers for sale comply with the TAA. The TAA generally requires the United States to purchase products made in the United States, or another designated country with which the United States has a trade agreement.
Samsung has authorized resellers who hold GSA MAS contracts. Samsung certifies to the authorized resellers that Samsung will provide TAA compliant products and the resellers in turn list those products on the resellers’ GSA MAS contracts. The settlement resolves allegations that, from January 2005 through August 2013, Samsung caused resellers of its products to sell items on their GSA MAS contracts in violation of the TAA by knowingly providing inaccurate information to the resellers regarding the country of origin of the goods. The United States alleges that Samsung represented to the resellers, who in turn represented to federal agencies, that the specified products were made in TAA designated countries, generally Korea or Mexico, when the specified products were in fact manufactured in China, which is not a TAA designated country.
“It is unacceptable to sell unauthorized foreign electronics to the United States,” said GSA Acting Inspector General Robert C. Erickson. “We expect all companies doing business with the federal government to comply with contracting laws.”
The allegations resolved by the settlement were originally brought in a lawsuit filed by Robert Simmons, a former Samsung employee, under the False Claims Act’s whistleblower provisions, which permit private parties to sue for false claims on behalf of the United States and to share in any recovery. Mr. Simmons’ share of the settlement has not yet been determined.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the District of Maryland, the Commercial Litigation Branch of the Justice Department’s Civil Division and the GSA’s Office of Inspector General.
The case is United States ex rel. Simmons v. Samsung Electronics America, Inc. et al., No. AW-11-2971 (D. Md.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
NGK Spark Plug Co. Ltd. Agrees to Plead Guilty to Price Fixing and Bid Rigging on Automobile Parts Installed in U.S. CarsRead the Press Release
NGK Spark Plug Co. Ltd., an automotive parts manufacturer based in Nagoya, Japan, has agreed to plead guilty and to pay a $52.1 million criminal fine for its role in a conspiracy to fix prices and rig bids for spark plugs, standard oxygen sensors, and air fuel ratio sensors installed in cars sold to automobile manufacturers in the United States and elsewhere, the Department of Justice announced today.
According to the one-count felony charge filed today in the U.S. District Court for the Eastern District of Michigan in Detroit, NGK Spark Plug engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of, spark plugs, standard oxygen sensors and air fuel ratio sensors installed in cars sold to automobile manufacturers such as DaimlerChrysler AG, Honda Motor Co. Ltd. and Toyota Motor Corp., among others, in the United States and elsewhere. In addition to the criminal fine, NGK Spark Plug has agreed to cooperate in the department’s ongoing investigation. The plea agreement will be subject to court approval.
“Today’s guilty plea is just another example of the commitment of the Antitrust Division to preserving fair and legal competitive practices,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “We will continue to do whatever it takes to protect U.S. consumers and businesses.”
According to the charge, NGK Spark Plug and its co-conspirators carried out the conspiracy through meetings and conversations in which they discussed and agreed upon bids and price quotations on bids to be submitted to certain automobile manufacturers and to allocate the supply of the products to those manufacturers. NGK Spark Plug sold spark plugs, standard oxygen sensors, and air fuel ratio sensors at non-competitive prices to auto makers in the United States and elsewhere in furtherance of the agreement. NGK Spark Plug’s involvement in the conspiracy lasted from at least as early as January 2000 until on or about July 2011.
NGK Spark Plug manufactures and sells spark plugs, standard oxygen sensors and air fuel ratio sensors. A spark plug is an engine component for delivering high electric voltage from the ignition system to the combustion chamber of an internal combustion engine. Oxygen sensors are located in the exhaust system and measure the amount of oxygen in the exhaust. Air fuel ratio sensors are “wideband” oxygen sensors that enable more precise control of the air/fuel ratio injected into the engine.
The charge against NGK Spark Plug is the latest in the department’s on-going investigation into anticompetitive conduct in the automotive parts industry. These are the first charges filed relating to spark plugs, standard oxygen sensors and air fuel ratio sensors sold to automobile manufacturers.
Including NGK Spark Plug, 28 companies and 26 executives have pleaded guilty or agreed to plead guilty in the division’s ongoing investigation into price fixing and bid rigging in the auto parts industry and have agreed to pay a total of $2.4 billion in criminal fines.
NGK Spark Plug is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. 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 charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. 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 the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit http://www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
Grand Rapids Landlords to Pay $550,000 and Terminate Manager’s Responsibilities to Settle Sexual Harassment Lawsuit Filed by Justice DepartmentRead the Press Release
The Justice Department announced today that the owners and operators of the Alger Meadows Apartments in Grand Rapids, Michigan, have agreed to pay $550,000 in damages and civil penalties and to terminate property manager Dale VanderVennen’s role in managing the complex to settle a lawsuit alleging that VanderVennen sexually harassed female tenants in violation of the Fair Housing Act (FHA).
The department’s complaint, filed in September 2013, alleged that Dale VanderVennen, the manager of 16 apartment buildings known as Alger Meadow Apartments, sexually harassed female tenants at the complex in violation of the FHA. The lawsuit alleged that VanderVennen made unwelcome sexual comments and sexual advances to female tenants, touched himself in a sexual manner in front of female tenants, entered their homes without notice or permission, conditioned housing benefits on tenants engaging in sexual acts and took adverse action against tenants who refused his advances. The lawsuit also included the owners of the complex and alleged that they were liable for VanderVennen’s actions. The department began its investigation after the Fair Housing Center of Greater Grand Rapids brought complaints about VanderVennen’s conduct to the department’s attention.
The settlement, which was approved today by Judge Robert J. Jonker, requires the defendants to pay $510,000 to victims of VanderVennen’s sexual harassment and $40,000 to the United States The $510,000 will be used to pay damages to thirteen women who have already been identified and to any additional victims who are identified through the process established in the settlement agreement. Persons who believe they were subjected to sexual harassment by VanderVennen should contact the Justice Department at 1-800-896-7743, option 5, or e-mail the Justice Department at [email protected] .
“The magnitude of this settlement reflects the seriousness of the defendant’s conduct,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “No woman or her family should have to endure sexual harassment to keep the keys to their home.”
“The U.S. Department of Justice takes the American civil rights laws very seriously,” said U.S. Attorney Patrick A. Miles Jr. for the Western District of Michigan. “We fight to protect a variety of rights, including the right to housing without being discriminated against or sexually harassed. My office is pleased by this settlement.”
The consent decree also prohibits all of the defendants from engaging in discrimination, and it requires that the owners create non-discrimination policies for their properties and participate in fair housing training to prevent such conduct in the future. It also bars VanderVennen from personally participating in the management or operation of residential rental properties in the future and requires him to retain an independent manager to manage any rental properties he may later own. In addition to VanderVennen, the defendants include four closely held companies that own and operate Alger Meadows. Those companies are Jack and Linda Properties LLC, DDJ Rental Real Estate LLC, Calcutta Associates LLC and LLJ LLC, all of which are affiliated with Jack VanderVennen.
Fighting illegal housing discrimination is a top priority of the Department of Justice. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp .
Related Materials:
VanderVennen Consent Decree
Connecticut Insurance Salesman Indicted on Tax ChargesRead the Press Release
A Newington, Connecticut, man was indicted last Thursday by a grand jury in the District of Connecticut for one count of corruptly interfering with the due administration of the internal revenue laws, two counts of filing false tax returns and five counts of willfully failing to file tax returns, the Justice Department and Internal Revenue Service (IRS) announced.
According to the indictment filed against him, which was unsealed today, Terry DiMartino corruptly endeavored to obstruct and impede the due administration of the internal revenue laws by, among other things, mailing and causing to be mailed to the IRS false tax returns, including a return requesting a false $14 million refund; submitting worthless bonds on a timely basis that purported to satisfy his tax liabilities; and using nominees to hide and conceal assets to prevent the IRS from collecting on his tax liabilities. The indictment also alleges that DiMartino failed to file individual income tax returns on a timely basis for 2008 through 2012.
A trial date has not been scheduled. If convicted, DiMartino would face a statutory maximum sentence of 14 years in prison as well as be subject to fines.
This case was investigated by IRS-Criminal Investigation. It is being prosecuted by Trial Attorneys Jennifer Laraia, Erin Pulice and Jason Scheff of the Justice Department’s Tax Division.
An indictment merely alleges that a crime has been committed 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 website .
Related Materials:
United States v. Terry J. DiMartino
IndictmentJustice Department Sues to Stop Florida Tax Return PreparerRead the Press Release
The United States has asked a federal court in Tampa, Florida, to stop Octavio Cruz and his company, Advantage Accounting Corp., from preparing federal income tax returns for others, the Justice Department announced today.
Cruz has been preparing tax returns since approximately 1998 with the assistance of his family. Operating first as Cruz and Cruz Accounting, and later as Advantage Accounting Corp., Cruz directly or indirectly prepared more than 30,000 tax returns for customers since 2009. The complaint alleges that Cruz prepares returns that unlawfully understate income tax liabilities and overstate refunds by fabricating and/or exaggerating deductions and tax credits his clients are not eligible to take. Cruz’s practices include fabricating losses for nonexistent businesses on customers’ Schedule C – Profit or Loss From Business, and falsely claiming child care and residential energy credits for which they were not eligible and did not incur. Cruz also prepared returns which falsely claimed American Opportunity Credits for taxpayers who did not incur the education expenses or go to college. Altogether, the complaint alleges that loss to the U.S. Treasury from the defendant’s activities may total millions of dollars.
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 fraudulent 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.
Related Materials:
United States v. Octavio Cruz, et al.
Complaint for Permanent InjunctionFormer Rabobank LIBOR Submitter Pleads Guilty for Scheme to Manipulate Yen LIBORRead the Press Release
A former Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) Japanese Yen London InterBank Offered Rate (LIBOR) submitter pleaded guilty today for his role in a conspiracy to commit wire and bank fraud by manipulating Rabobank’s Yen LIBOR submissions to benefit trading positions.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Acting Assistant Director in Charge Timothy A. Gallagher of the FBI’s Washington Field Office made the announcement.
Paul Robson, a citizen of the United Kingdom, appeared before United States District Judge Jed S. Rakoff in the Southern District of New York and pleaded guilty to count one of a 15-count indictment returned by a federal grand jury in the Southern District on April 28, 2014. Sentencing is scheduled for June 9, 2017.
“ Paul Robson is the second employee at Rabobank, one of the world’s largest banks, to plead guilty to participating in a global fraud scheme,” said Assistant Attorney General Caldwell. “The scope of the fraud was massive, but the scheme was simple. By illegally influencing the LIBOR rates, Robson and his coconspirators rigged the markets to ensure that their trades made money. Robson’s conviction demonstrates the Department of Justice’s continued resolve to hold individuals and institutions accountable for their involvement in fraud in the financial markets.”
“Today’s guilty plea demonstrates our continuing resolve to prosecute those who fraudulently manipulated the LIBOR rate for their own personal benefit and, in doing so, undermined free and fair markets,” said Deputy Assistant Attorney General Snyder.
“Fraudulently manipulating the LIBOR has far reaching effects on international financial markets and such criminal activity will not be tolerated,” said Acting Assistant Director in Charge Gallagher. “The Washington Field Office has committed significant time and resources including the expertise of Special Agents, forensic accountants and analysts to investigate this case along with our Department of Justice colleagues. While the crimes committed are complex, their expertise demonstrates our ability to bring justice to those that choose to commit these crimes.”
Robson, along with former Rabobank Yen LIBOR derivatives traders Paul Thompson, of Australia, and Tetsuya Motomura, of Japan, was charged with conspiracy to commit wire and bank fraud as well as substantive counts of wire fraud. The indictment also alleges that the conspiracy involved numerous additional, unnamed individuals and entities. Among those individuals and entities are:· Takayuki Yagami (described in the indictment as Trader-R), a Japanese national and former Rabobank trader who pleaded guilty on June 10, 2014, in the Southern District of New York to one count of conspiracy to commit wire and bank fraud for his involvement in the conspiracy alleged in the indictment; and
· Lloyds Banking Group plc (LBG), a U.K.-based bank that, as part of a deferred prosecution agreement filed in the United States District Court for the District of Connecticut on July 28, 2014, admitted wrongdoing in connection with the alleged conspiracy’s overt acts, and agreed to pay an $86 million penalty.
According to court documents, LIBOR is an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.
At the time relevant to the charges, LIBOR was published by the British Bankers’ Association (BBA), a trade association based in London. LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The published LIBOR “fix” for Yen LIBOR at a specific maturity is the result of a calculation based upon submissions from a panel of 16 banks, including Rabobank.
Rabobank entered into a deferred prosecution agreement with the Department of Justice on Oct. 29, 2013, and agreed to pay a $325 million penalty to resolve violations arising from Rabobank’s LIBOR submissions.
According to court documents, Robson worked as a senior trader at Rabobank’s Money Markets and Short Term Forwards desk in London and also served as Rabobank’s primary submitter of Yen LIBOR to the BBA; Thompson was Rabobank’s head of Money Market and Derivatives Trading Northeast Asia and worked in Singapore; Motomura was a senior trader at Rabobank’s Tokyo desk who supervised money market and derivative traders; and Yagami worked as a senior trader at Rabobank’s Money Market/FX Forwards desks in Tokyo and elsewhere in Asia.
Robson’s main role in the conspiracy was to submit Yen LIBOR rates at the requests of traders, including Thompson, Motomura and Yagami, who entered into derivatives contracts containing Yen LIBOR as a price component . T he profit and loss that flowed from those contracts was directly affected by the relevant Yen LIBOR on certain dates. If the relevant Yen LIBOR moved in the direction favorable to the defendants’ positions, Rabobank and the defendants benefitted at the expense of the counterparties. When LIBOR moved in the opposite direction, the defendants and Rabobank stood to lose money to their counterparties.
As alleged in court filings, from about May 2006 to at least January 2011, the four defendants, a Yen LIBOR submitter at LBG, and others agreed to make false and fraudulent Yen LIBOR submissions for the benefit of selected trading positions. According to the allegations, sometimes Robson submitted rates at a specific level requested by a co-defendant or other traders, and at other times Robson made a higher or lower Yen LIBOR submission consistent with the direction requested by a co-defendant or other traders.
For example, according to court filings, on Sept. 21, 2007, Yagami asked Robson by email, “where do you think today’s libors are? If you can I would like 1mth higher today.” Robson responded, “bookies reckon .85,” to which Yagami replied, “I have some fixings in 1mth so would appreciate if you can put it higher mate.” Robson answered, “no prob mate let me know your level.” After Yagami asked for “0.90% for 1mth,” Robson confirmed, “sure no prob[ ] I’ll probably get a few phone calls but no worries mate… there’s bigger crooks in the market than us guys!”
Robson admitted that he accommodated the requests of his co-defendants and other traders. For example, on Sept. 21, 2007, after Robson allegedly received a request from Yagami for a high one-month Yen LIBOR, Rabobank submitted a one-month Yen LIBOR rate of 0.90, which was seven basis points higher than the previous day and five basis points above where Robson said that “bookies” predicted it, and which moved Rabobank’s submission from the middle to the highest of the panel.
According to court documents, the defendants were also aware that they were making false or fraudulent Yen LIBOR submissions. For example, on May 10, 2006, Robson admitted in an email to Yagami that “it must be pretty embarrasing to set such a low libor. I was very embarrased to set my 6 mth – but wanted to help thomo [Thompson]. Tomorrow it will be more like 33 from me.” At times, Robson referred to the submissions that he submitted on behalf of his co-defendants as “ridiculously high” and “obscenely high,” and acknowledged that his submissions would be so out of line with the other Yen LIBOR panel banks that he might receive a phone call about them from the BBA or Thomson Reuters.
On numerous occasions, Robson also passed along such requests to the LBG submitter, who altered LBG’s Yen LIBOR submission accordingly if doing so did not adversely affect selected trading positions at LBG. Likewise, the LBG setter sent requests to Robson and he generally altered Rabobank’s Yen LIBOR to satisfy the requests. For example, on July 28, 2006, Robson wrote to the LBG submitter: “morning skipper.....will be setting an obscenely high 1m again today...poss 38 just fyi.” The LBG submitter responded: “(K)...oh dear..my poor customers....hehehe!! manual input libors again today then!!!!” Both banks’ submissions on July 28 moved up one basis point, from 0.37 to 0.38. As the LBG submitter explained, according to court documents filed in connection with Rabobank’s deferred prosecution agreement, to other LBG submitters, “We usually try and help each other out…but only if it suits.”
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The investigation is being conducted by special agents, forensic accountants, and intelligence analysts in the FBI’s Washington Field Office. The prosecution is being handled by Senior Litigation Counsel Carol L. Sipperly and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section, and Trial Attorney Michael T. Koenig of the Antitrust Division. The Criminal Division’s Office of International Affairs has provided assistance in this matter.
The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad. The Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, has played a major role in the LIBOR investigation. The Securities and Exchange Commission also has played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of Rabobank. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.
This prosecution is part of efforts underway by President Barack Obama’s 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 about the task force visit: www.stopfraud.com.Former Patriarch of the Lorenzana Drug Trafficking Organization Pleads Guilty to Drug Conspiracy ChargesRead the Press Release
Waldemar Lorenzana Sr., 75, the patriarch of the Lorenzana drug trafficking organization in Guatemala, pleaded guilty today to conspiracy to import over 450 kilograms of cocaine into the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting Special Agent in Charge Robert W. Patterson of the Drug Enforcement Agency’s (DEA) Special Operations Division made the announcement. The guilty plea was entered by U.S. District Judge Colleen Kollar-Kotelly in the District of Columbia.
“For more than a decade, the Lorenzana drug trafficking operation received, stored, and transported massive quantities of cocaine for distribution in the United States,” said Assistant Attorney General Caldwell. “The kingpin and patriarch of this family has now been extradited and convicted in the United States, and two of his sons are currently awaiting extradition from Guatemala. This case once again affirms the Justice Department’s unwavering commitment to working with our international law enforcement partners to bring transnational drug traffickers, wherever they may reside, to justice for their crimes.”
“For years, members of the Lorenzana family smuggled cocaine to the United States with impunity,” said Acting Special Agent in Charge Patterson. “The indictment, extradition and conviction of Waldemar Lorenzana, and the pending extradition of other members of his family, proves once again that no one is above the law when international partners cooperate. This investigation could never have been brought to fruition without the unwavering support of our law enforcement colleagues and is another great example of international coordination.”
According to the superseding indictment, from March 1996 to April 2009, Lorenzana Sr. and three of his sons conspired to distribute multi-ton quantities of cocaine within Guatemala and elsewhere, knowing that the narcotics would be illegally imported into the United States for distribution. As described in further court documents, the Lorenzana drug trafficking organization worked with drug trafficking organizations in Colombia and Mexico to transport shipments of cocaine by go-fast boats and airplanes to El Salvador and Guatemala for distribution to cities within the United States. Lorenzana Sr. was arrested by Guatemalan authorities on April 26, 2011, detained in Guatemala, and extradited to the United States in March 2014. Sentencing will be scheduled at a later date.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The investigation was led by the DEA’s 959/Bilateral Investigations Unit and Guatemala City Country Office and was part of the Organized Crime Drug Enforcement Task Force. The case is being prosecuted by Trial Attorneys Amanda Liskamm, Adrian Rosales and Michael Lang of the Criminal Division’s Narcotic and Dangerous Drug Section. The Criminal Division’s Office of International Affairs provided significant assistance in the extradition. The Department expresses its gratitude and appreciation to the government of Guatemala for its assistance in this matter.Attorney General Statement on Latest Developments in Federal Civil Rights Investigation in Ferguson, MORead the Press Release
Attorney General Eric Holder released the following statement Monday following his briefing of President Obama on the latest developments in the federal civil rights investigation in Ferguson, Missouri:
“As I informed the President this afternoon, the full resources of the Department of Justice are being committed to our federal civil rights investigation into the death of Michael Brown.
“During the day today, more than 40 FBI agents continued their canvassing of the neighborhood where Michael Brown was shot. As a result of this investigative work, several new interviews have already been conducted.
“Moreover, at my direction, an additional medical examination is being performed on the body of Michael Brown. This autopsy is being performed today by one of the most experienced medical examiners in the United States military. I am confident this additional autopsy will be thorough and aid in our investigation.
“In addition to updating the President on these developments, I informed him of my plan to personally travel to Ferguson Wednesday. I intend to meet with FBI investigators, and prosecutors on the ground from the Civil Rights Division and U.S. Attorney’s Office officials about the ongoing investigation.
“I realize there is tremendous interest in the facts of the incident that led to Michael Brown’s death, but I ask for the public’s patience as we conduct this investigation. The selective release of sensitive information that we have seen in this case so far is troubling to me. No matter how others pursue their own separate inquiries, the Justice Department is resolved to preserve the integrity of its investigation. This is a critical step in restoring trust between law enforcement and the community, not just in Ferguson, but beyond.
“In order to truly begin the process of healing, we must also see an end to the acts of violence in the streets of Ferguson. Those who have been peacefully demonstrating should join with law enforcement in condemning the actions of looters and others seeking to enflame tensions.
“To assist on this front, the Department will be dispatching additional representatives from the Community Relations Service, including Director Grande Lum, to Ferguson. These officials will continue to convene stakeholders whose cooperation is critical to keeping the peace. Furthermore, as the President has announced, Ron Davis, our Director of the COPS office, will arrive on the ground in Ferguson Tuesday. Ron has been in touch with local and state officials since last week, providing technical assistance on crowd control techniques and facilitating communications between Missouri officials and other law enforcement officials whose communities have faced similar challenges in the past.”
Armenian Power Associate Sentenced to More Than 13 Years in Prison for Racketeering ConspiracyRead the Press Release
An associate of the Armenian Power gang, who was convicted at trial for his role in a racketeering conspiracy that included stealing personal and financial information of elderly bank customers for accounts valued at more than $25 million, was sentenced to serve 160 months in prison today in federal court in Los Angeles.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement. The sentence was imposed by U.S. District Judge Philip S. Gutierrez of the Central District of California.
Andranik Aloyan, 41, of Los Angeles was found guilty by a federal jury on Feb. 11, 2014, of racketeering conspiracy, attempted bank fraud, access device fraud, four counts of aggravated identity theft and possession of a firearm by a convicted felon. According to evidence presented at trial, Aloyan possessed personal and financial information belonging to more than 75 mostly elderly customers of banks operating throughout the country. This information was stolen by Aloyan and his associates. The combined value of the accounts for which Aloyan possessed account information exceeded $25 million dollars. In addition to his prison term of 160 months, Aloyan was sentenced to serve three years of supervised release and ordered to pay $3,516,711 in restitution to victims.
Aloyan was among 90 individuals charged in two indictments, including a 140-count indictment in July 2011 charging 70 defendants with a variety of criminal activities associated with the Armenian Power gang. The indictment accused 29 defendants, including Aloyan, of participating in the Armenian Power racketeering conspiracy that involved a host of illegal activities such as sophisticated bank fraud, identity theft, debit-card skimming, manufacturing counterfeit checks and money laundering. In addition, defendants in the case were allegedly involved in a variety of violent crimes, such as kidnapping, extortion and firearms offenses, along with other crimes including drug trafficking and illegal gambling. Eighty-one defendants have previously been convicted or pleaded guilty to the charges, including 24 defendants who were convicted of or pleaded guilty to racketeering charges.
According to court documents, the Armenian Power street gang formed in the East Hollywood district of Los Angeles in the 1980s. The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc. Armenian Power has been designated under California state law as a criminal street gang and is believed to have more than 250 documented members, as well as hundreds of associates. According to court documents, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions and witness intimidation to enrich its members and associates and preserve and enhance the power of the criminal enterprise.
The case was investigated by the Eurasian Organized Crime Task Force, which is comprised of the FBI, the Glendale Police Department, the Los Angeles Police Department, the Burbank Police Department, the Los Angeles Sheriff’s Department, the Internal Revenue Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Secret Service.
The case is being prosecuted by Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Martin Estrada, Elizabeth Yang and Stephen Wolfe of the Central District of California.Statement by Justice Department Spokesman on Latest Developments in Federal Civil Rights Investigation in Ferguson, MissouriRead the Press Release
The following statement was released Sunday by Justice Department spokesman Brian Fallon concerning the federal civil rights investigation into the shooting of Michael Brown in Ferguson, Missouri:
"Due to the extraordinary circumstances involved in this case and at the request of the Brown family, Attorney General Holder has instructed Justice Department officials to arrange for an additional autopsy to be performed by a federal medical examiner. This independent examination will take place as soon as possible. Even after it is complete, Justice Department officials still plan to take the state-performed autopsy into account in the course of their investigation."
The following joint statement was released Friday by FBI Special Agent in Charge William P. Woods, U.S. Attorney for the Eastern District of Missouri Richard G. Callahan and Acting Assistant Attorney General for the Civil Rights Division Molly MoranRead the Press Release
The former chief executive officer of Hanover Corporation was sentenced today to serve 14 years in prison, to be followed by three years of supervised release and ordered to pay $14,784,983.75 in restitution for orchestrating an $18 million Ponzi scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David Rivera of the Middle District of Tennessee, Special Agent in Charge Todd McCall of the FBI’s Memphis Division and Special Agent in Charge Christopher Henry of the IRS-Criminal Investigation in Nashville made the announcement today after the sentence was handed down by U.S. District Judge Todd J. Campbell in the Middle District of Tennessee.
According to court documents, between January 2004 and August 2006, Terry Kretz, 61, of Gallatin, Tennessee, offered clients the opportunity to invest in Hanover through promissory notes bearing high interest rates. Kretz told clients that their money would be used for specific purposes, such as investing in stock options and startup companies. In fact, however, more than half of the money invested in Hanover went to repay earlier investors, to pay Hanover’s salaries and overhead and to fund personal luxuries, including Kretz’s purchase of a $600,000 residential building lot, a $176,000 contribution to a church, and golf memberships.
Kretz’ co-conspirators, Daryl Bornstein, a Hanover salesman, and Robert Haley, Hanover’s chief financial officer, previously pleaded guilty to similar charges and are scheduled to be sentenced on August 25, 2014.
The case was investigated by the FBI, IRS-CI, the Tennessee Bureau of Investigation, and the Tennessee Department of Commerce and Insurance. The case is being prosecuted by Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Scarlett S. Nokes of the Middle District of Tennessee.Real Estate Developer and Mortgage Broker Plead Guilty to Mortgage Fraud SchemeRead the Press Release
Two Miami, Florida, residents pleaded guilty this week to participating in a mortgage fraud scheme involving the sale of condominium units in the Miami area.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Nadine Gurley of the Department of Housing and Urban Development’s Office of the Inspector General in Miami (HUD-OIG) and Acting Inspector General Michael P. Stephens of the Federal Housing Finance Administration (FHFA) made the announcement.
Luis Michael Mendez, 44, and Wilkie Perez, 39, each pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud before U.S. District Court Judge Darrin P. Gayles in the Southern District of Florida. In their pleas, both defendants admitted that they participated in a scheme to place straw buyers in condominium units owned by real estate developers who are members of Mendez’s immediate family in return for a share of the profits.
As part of Mendez’s plea agreement, he admitted participating in a scheme to sell condominium units in developments controlled by members of his immediate family to straw buyers who would neither own nor be financially responsible for the properties. Mendez conspired with two Florida mortgage brokers to finance the fraudulent transactions with loans obtained by submitting false loan applications and supporting documentation. Mendez also admitted submitting false loan applications in his own name to purchase a number of properties. Following the purchase of the units, the seller funneled a portion of the sale proceeds to shell corporations controlled by Mendez. In total, Mendez admitted that his conduct caused a loss of over $3 million.
According to court papers, Perez was a licensed mortgage broker who owned Kinetic Mortgage Group, Inc., a mortgage brokerage company in Miami, Florida. Perez admitted that he and Luis Mendez, one of Mendez’s immediate family members who owned and controlled the real estate developments, entered into an agreement in which Perez arranged for straw buyers to obtain financing to purchase units controlled by Luis Mendez by, among other things, submitting to financial institutions loan applications and supporting documents containing false information about buyers’ employment, income, and assets. Luis Mendez paid kickbacks to Perez out of the loan proceeds following the closings on the properties. Perez, in turn, used a portion of the kickback payments to compensate straw buyers for the use of their identities and credit information. In total, Perez admitted to obtaining more than $2.5 million in fraudulent loans.
Mendez and Perez were indicted by a federal grand jury on March 31, 2014, with Luis Mendez, Stavroula Mendez, Marie Mendez, and Enrique Angulo, who have entered pleas of not guilty and are scheduled for trial beginning Sept. 8, 2014. The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by HUD-OIG and FHFA. The case is being prosecuted by Trial Attorneys Gary A. Winters and Brian Young of the Criminal Division’s Fraud Section.Justice Department Settles Immigration-Related Discrimination Claim Against Staffing AgencyRead the Press Release
The Justice Department reached an agreement today with Real Time Staffing Services LLC, doing business as Select Staffing, a company based in Santa Barbara, California. The settlement resolves the department’s claims that Select Staffing discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).
The department’s investigation, which was initiated based on a referral from the U.S. Citizenship and Immigration Services (USCIS), concluded that members of the company’s staff required non-U.S. citizens, but not similarly-situated U.S. citizens, to present specific documents during the employment eligibility verification process to establish their work authority. The INA’s anti-discrimination provision prohibits employers from placing additional documentary burdens on work-authorized employees during the employment eligibility verification process based on their citizenship status or national origin.
Under the settlement agreement, Select Staffing will pay $230,000 in civil penalties to the United States, create a $35,000 back pay fund to compensate individuals who may have lost wages due to the company’s practices and undergo training on the anti-discrimination provision of the INA. Certain Select Staffing branches will be subject to departmental monitoring and reporting requirements for a period of three years.
“The Civil Rights Division is committed to protecting work authorized individuals from discriminatory practices in the employment eligibility verification process,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “We commend Select Staffing for working cooperatively with the division to resolve this matter.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee, document abuse, 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, should contact OSC’s worker hotline for assistance.
Justice Department Asks Court to Dismiss Oakley Training School Case After Conditions for Confined Youth Improved Under Consent DecreeRead the Press Release
Today, the Justice Department asked a federal court to dismiss its case involving Oakley Training School in Raymond, Mississippi, because the state of Mississippi and the Division of Youth Services have significantly improved conditions for confined youth at Oakley. The reforms, implemented under a consent decree, resulted in increased protections to prevent harm to youth, improved suicide prevention practices, improved medical, dental and mental healthcare, increased rehabilitative services and improved special educational services.
In 2003, the department notified Mississippi that conditions at the Oakley Training School and the Columbia Training School violated the constitutional rights of confined youth. In 2005, the department and state officials entered into a settlement agreement to implement many reforms related to legally-required services and protections for confined youth. The parties appointed independent monitors to oversee these reform efforts at Oakley and Columbia and to provide technical assistance to facility officials. The state closed Columbia in 2008, leaving Oakley as the only facility in the case.
During the course of the settlement agreement’s corrective action period, state officials have made steady progress toward improving conditions of confinement at Oakley. On May 8, 2014, the monitor issued her 21st report indicating that the state had achieved and maintained substantial compliance with all required remedial measures in the settlement agreement. The department agrees with the monitor’s assessment.
“We commend the state of Mississippi and the Division of Youth Services for their commitment to protecting confined youth in its custody,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “These improvements will help to ensure that safety, security, and required services are provided to all Oakley youth in a sustainable manner.”
“We are pleased that the state of Mississippi and the Division of Youth Services have been diligent about improving the conditions for youth confined at the Oakley Training School,” said U.S. Attorney Gregory K. Davis for the Southern District of Mississippi. “The implemented reforms will benefit the youth confined at Oakley.”
The department initiated this investigation under the Civil Rights of Institutionalized Persons Act, and the Violent Crime Control and Law Enforcement Act of 1994. Both statutes give the department the authority to seek a remedy for a pattern or practice of conduct that violates the constitutional or federal statutory rights of youth in juvenile justice institutions. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt
Former Owner of Los Angeles Medical Clinic Management Company Pleads Guilty in $3.2 Million Medicare Fraud SchemeRead the Press Release
The former owner of a Los Angeles medical clinic management company pleaded guilty today in connection with his role in a scheme to defraud Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.
Mihran “Mike” Meguerian, 37, of Glendale, California, pleaded guilty before U.S. District Judge Beverly R. O’Connell in the Central District of California to one count of conspiracy to commit health care fraud.
According to court documents, Meguerian owned Med Serve Management (Med Serve), a medical clinic management company located in Van Nuys, California. Meguerian admitted that from approximately July 2008 through February 2009, he engaged in a conspiracy to commit health care fraud, in part through the operation of Med Serve. Meguerian admitted that he oversaw medical clinics that wrote prescriptions for medically unnecessary power wheelchairs and other durable medical equipment (DME). Meguerian and his co-conspirators then sold the prescriptions to DME supply companies, knowing that the prescriptions were fraudulent. The DME supply companies submitted the fraudulent prescriptions to Medicare in false and fraudulent claims.
From approximately July 2008 through February 2009, DME supply companies submitted approximately $3,367,661 in fraudulent claims to Medicare using fraudulent prescriptions from Meguerian’s clinics, and Medicare paid approximately $1,438,760 for those claims. Meguerian’s sentencing is scheduled for Nov. 17, 2014.
This case was investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, which is supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. This case is being prosecuted by Trial Attorneys Fred Medick and Blanca Quintero of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,900 defendants who have collectively billed the Medicare program more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .FBI, Justice Officials Announce Next Steps in Federal Civil Rights Investigation in Ferguson, MissouriRead the Press Release
The following joint statement was released Friday by FBI Special Agent in Charge William P. Woods, U.S. Attorney for the Eastern District of Missouri Richard G. Callahan and Acting Assistant Attorney General for the Civil Rights Division Molly Moran:
“At the onset of our federal civil rights investigation, the Attorney General of the United States promised a thorough and complete investigation into the shooting death of Michael Brown. That investigation is proceeding. We can confirm that FBI agents, working together with attorneys from the Justice Department's Civil Rights Division and US Attorney's Office, have already conducted several interviews of witnesses on the scene at the time of the shooting. Over the next several days, teams of FBI agents will be canvassing the neighborhood where the shooting took place to identify any individuals who may have information related to the shooting and have not yet come forward. We ask for the public's cooperation and patience, and again urge anyone with information related to the shooting to contact the FBI. The FBI can be reached at (800) CALL-FBI, option 4.”
El Departamento de Justicia Resuelve un Caso de Discriminación Relacionado con Inmigración en contra de una Agencia de EmpleoRead the Press Release
WASHINGTON – El Departamento de Justicia llegó a un acuerdo hoy con Real Time Staffing Services LLC, que opera bajo la denominación Select Staffing, una compañía con sede en Santa Bárbara, California. El acuerdo resuelve los reclamos del Departamento que Select Staffing discriminó contra individuos autorizados a trabajar que no son ciudadanos estadounidenses, en violación de la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del Departamento, iniciada por una referencia del Servicio de Ciudadanía e Inmigración de Estados Unidos (USCIS por sus siglas en inglés), concluyó que Select Staffing sometió a los empleados que no eran ciudadanos estadounidenses, pero que contaban con autorización de trabajo, a exigencias ilegales de presentar documentos específicos para verificar su elegibilidad de empleo, mientras que a los ciudadanos estadounidenses se les permitía presentar los documentos de su elección. La provisión anti-discriminación de la INA prohíbe que los empleadores impongan cargas documentales adicionales a los empleados con autorización de trabajo durante el proceso de contratación y verificación de elegibilidad de empleo con base a su estado de ciudadanía u origen nacional.
Según el acuerdo, Select Staffing le pagará a los Estados Unidos $230,000 en sanciones civiles, creará un fondo de $35,000 para compensar a las personas que puedan haber perdido salarios debido a las prácticas de la compañía y participará en adiestramiento sobre la provisión anti-discriminación de la INA. Ciertas oficinas de Select Staffing estarán sujetas a monitoreo departamental y a requisitos de información por un período de tres años.
"La División de Derechos Civiles se compromete a proteger a las personas autorizadas a trabajar frente a las prácticas discriminatorias durante el proceso de verificación de elegibilidad de empleo," dijo Molly Moran, la Sub-Procuradora General Interina para la División de Derechos Civiles. "Elogiamos a Select Staffing por trabajar en colaboración con la División para resolver este asunto."
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con Inmigración (Office of Special Counsel for Immigration-Related Unfair Employment Practices, OSC por sus siglas en inglés) es responsable de hacer cumplir con la provisión anti- discriminación de la INA. La ley prohíbe, entre otras cosas, la discriminación por causa del estado de ciudadanía o el origen nacional de una persona cuando se contrata, se despide, se recluta o se recomienda por un honorario; el abuso de documentos; y las represalias o la intimidación.
Para más información sobre las protecciones contra la discriminación en el empleo bajo las leyes de inmigración, llame a la línea directa de la OSC para el trabajador, al 1-800-255-7688 (teléfono de texto 1-800-237-2515, para las personas con discapacidades auditivas), o a la línea directa de la OSC para el empleador, al 1-800-255-8155 (teléfono de texto 1-800-237-2515, para las 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 del internet de OSC en www.justice.gov/crt/about/osc.
Los solicitantes o empleados que creen que han sido sometidos a requisitos documentarios diferentes por causa de su estado de ciudadanía, estado de inmigración u origen nacional, o discriminación por causa de su estado de ciudadanía, estado de inmigración u origen nacional, en la contratación, el despido, el reclutamiento o la recomendación por un honorario, deberán comunicarse a la línea directa de la OSC para el trabajador para recibir ayuda.
Department of Justice Reaches Agreement with the Louisiana Supreme Court to Protect Bar Candidates with DisabilitiesRead the Press Release
The Justice Department announced today that it has entered into a settlement agreement with the Louisiana Supreme Court that will resolve the department’s investigation of the court’s policies, practices and procedures for evaluating bar applicants with mental health disabilities. The department’s investigation found that during the Louisiana bar admissions process licensing entities based recommendations about bar admission on mental health diagnosis and treatment rather than conduct that would warrant denial of admission to the bar.
The settlement agreement ensures the right of qualified bar applicants with mental health disabilities to have equal access to the legal profession as required by the Americans with Disabilities Act (ADA). It prohibits the court from asking unnecessary and intrusive questions about bar applicants’ mental health diagnosis or treatment. It also requires the court to refrain from imposing unnecessary and burdensome conditions on bar applicants with mental health disabilities, such as requests for medical records, compulsory medical examinations or onerous monitoring and reporting requirements. Title II of the ADA prohibits public entities, including licensing entities, from imposing unnecessary eligibility criteria that tend to screen out individuals with disabilities, or imposing unnecessary burdens on individuals with disabilities that are not imposed on others.
The department found that diagnosis and treatment, without problematic conduct, did not effectively predict future misconduct as an attorney and did not justify restrictions on admission. Yet the Louisiana bar admissions process imposed unnecessary burdens on applicants and attorneys based on their diagnosis and treatment, in violation of the ADA. Questions about mental health diagnosis and treatment, such as those used by Louisiana, are counterproductive to licensing entities’ interest in attorney fitness because individuals who would benefit from mental health treatment may be deterred from obtaining it by the knowledge that they will have to disclose their treatment to licensing authorities.
“Today’s agreement will ensure that qualified bar applicants with mental health disabilities are able to pursue their dream of becoming licensed attorneys, without discrimination based on diagnosis or treatment,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Qualified individuals with disabilities, including mental health disabilities, have valuable contributions to make to the legal profession and to their communities. Their diagnosis should not hinder or prevent them from doing so. Though bar licensing entities have the important responsibility of ensuring that all licensed attorneys are fit to practice law, licensing entities must discharge this responsibility in a manner that is consistent with civil rights laws.”
“This agreement is a testament to the United States Department of Justice’s commitment to fighting discrimination against persons with disabilities and further ensures that qualified individuals will have the opportunity to pursue their career goals and make valuable contributions to our community,” said U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana. “The cooperation between the parties in reaching this agreement demonstrates a shared priority of protecting against discrimination.”
Under the agreement, the court will, among other actions:
• Revise its character and fitness screening questions so that they focus on applicants’ conduct or behavior, and ask about an applicant’s condition or impairment only when it currently affects the applicant’s ability to practice law in a competent, ethical and professional manner or is disclosed to explain conduct that may otherwise warrant denial of admission;
• Refrain from imposing unnecessary burdens on applicants with mental health disabilities by placing onerous disability-based conditions on their admission, invading their privacy, or violating their confidentiality;
• Re-evaluate prior and pending applications of applicants who disclosed mental health disabilities under the revised, non-discriminatory procedures set forth in the agreement; and
• Pay $200,000 to compensate a number of affected bar applicants and attorneys.
Since the department’s letter of findings concluding that the court was in violation of Title II of the ADA was issued in February, the court has worked cooperatively with the department to negotiate an agreement and to implement corrective measures.
The department has also raised issues about unnecessary bar application questions related to mental health disabilities with the states of Vermont and Connecticut and with the National Council of Bar Examiners (NCBE). The NCBE revised two of its questions about mental health on February 24, 2014.
More information about this settlement agreement and the obligations of licensing entities under the ADA may be found at www.ada.gov or by calling the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
Big Game Hunting Outfitter Pleads Guilty to Felony Conspiracy Charge in Connection with Illegal Mountain Lion and Bobcat Hunting ActivitiesRead the Press Release
Christopher W. Loncarich, 55, of Mack, Colorado, pleaded guilty in federal court in Denver to a felony conspiracy charge stemming from his sale of outfitting services for illegal mountain lion and bobcat hunts in Colorado and Utah, the Justice Department announced.
Loncarich pleaded guilty to one count of conspiracy to violate the Lacey Act. The Lacey Act is a federal law that makes it illegal to knowingly transport or sell in interstate commerce any wildlife that has been taken or possessed in violation of state laws or regulations.
According to an indictment returned by the grand jury for the District of Colorado on Jan. 7, 2014, and the plea agreement, Loncarich conspired with others to provide numerous illegal hunts of mountain lions and bobcats in Colorado and Utah from 2007 to 2010. In particular, Loncarich and his confederates trapped, shot and caged mountain lions and bobcats prior to hunts in order to provide easier chases of the cats for clients. Loncarich also admits that he and his assistants guided several hunters that did not possess a Utah mountain lion or bobcat license on mountain lion or bobcat hunts in Utah. Loncarich’s base of operations in Mack, Colorado, is approximately five miles from the Utah-Colorado border. Loncarich sold mountain lion hunts for between $3,500 and $7,500 and bobcat hunts for between $700 and $1,500 and shared a portion of the proceeds from successful hunts with his assistant guides.
Three of Loncarich’s assistant guides have previously pleaded guilty to Lacey Act violations in connection with their guiding activities with Loncarich. On July 30, 2014, Loncarich’s lead assistant guide, Nicholaus J. Rodgers, pleaded guilty to felony conspiracy to violate the Lacey Act in connection with his work for Loncarich.
The maximum penalty for conspiring to violate the Lacey Act is five years in prison and a $250,000 fine. Under the terms of the plea agreement, the prosecution agreed to a sentencing calculation pursuant to the advisory United States Sentencing Guidelines but did not agree on a term of imprisonment, an amount of fines or an amount of restitution. A sentencing hearing for Loncarich is set for Nov. 20, 2014.
The case was investigated by the U.S. Fish & Wildlife Service, Colorado Parks and Wildlife and the Utah Division of Wildlife Resources. The case is being prosecuted by the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.Texas Resident Charged with Tax Fraud and Financial Institution FraudRead the Press Release
A Texas woman who was the manager of a North Carolina tax preparation business was indicted today for multiple tax crimes and making false statements to banks on loan applications, the Justice Department and Internal Revenue Service (IRS) announced.
Tamny Denise Westbrooks of Fulshear, Texas, was charged in an indictment alleging between 2004 through 2009, she was the day-to-day manager of JATS Tax Service, a tax preparation business located in Charlotte, North Carolina. Westbrooks underreported her net profits from JATS by overstating business expenses for tax years 2007, 2008 and 2009. She also obstructed and impeded the IRS by filing false tax returns for herself and others and by paying workers in cash while failing to file the required forms reporting their compensation. The indictment further alleges that Westbrooks made false statements to her mortgage and automobile lenders on loan applications submitted in 2005 and 2007.
A trial date has not been scheduled. If convicted, Westbrooks faces statutory maximum sentences of three years in prison and a fine of $250,000 on each of the filing false return charges and the obstruction charge, and a statutory maximum sentence of 30 years in prison and a fine of $1 million for each of the bank fraud charges.
The case was investigated by special agents of IRS – Criminal Investigation. Trial Attorneys Kevin Lombardi and Hayden Brockett of the Justice Department’s Tax Division are prosecuting the case.
An indictment merely alleges that a crime has been committed 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 website .
Statement by Attorney General Eric Holder on Latest Developments in Ferguson, MissouriRead the Press Release
Attorney General Eric Holder released the following statement Thursday following his meeting earlier today with President Obama to discuss the latest developments in Ferguson, Missouri:
“This morning, I met with President Obama to discuss the events in Ferguson, Missouri. Like the President, I extend my heartfelt condolences to the family of Michael Brown. While his death has understandably caused heartache within the community, it is clear that the scenes playing out in the streets of Ferguson over the last several nights cannot continue.
“For one thing, while the vast majority of protests have been peaceful, acts of violence by members of the public cannot be condoned. Looting and willful efforts to antagonize law enforcement officers who are genuinely trying to protect the public do nothing to remember the young man who has died. Such conduct is unacceptable and must be unequivocally condemned.
“By the same token, the law enforcement response to these demonstrations must seek to reduce tensions, not heighten them. Those who peacefully gather to express sympathy for the family of Michael Brown must have their rights respected at all times. And journalists must not be harassed or prevented from covering a story that needs to be told.
“At a time when we must seek to rebuild trust between law enforcement and the local community, I am deeply concerned that the deployment of military equipment and vehicles sends a conflicting message. At my direction, Department officials have conveyed these concerns to local authorities. Also at my direction, the Department is offering – through our COPS office and Office of Justice Programs – technical assistance to local authorities in order to help conduct crowd control and maintain public safety without relying on unnecessarily extreme displays of force. The local authorities in Missouri have accepted this offer of assistance as of this afternoon.
“Department officials from the Community Relations Service are also on the ground in Missouri to help convene law enforcement officials and civic and faith leaders to plot out steps to reduce tensions in the community. The latest such meeting was convened in Ferguson as recently as this morning. Over time, these conversations should consider the role that increased diversity in law enforcement can play in helping to build trust within communities.
“All the while, the federal civil rights investigation into the shooting incident itself continues, in parallel with the local investigation into state law violations. Our investigators from the Civil Rights Division and U.S. attorney’s office in Missouri have already conducted interviews with eyewitnesses on the scene at the time of the shooting incident on Saturday. Our review will take time to conduct, but it will be thorough and fair.”
Puerto Rico Businessman Pleads Guilty to Bribing a Puerto Rico Superior Court JudgeRead the Press Release
A Puerto Rico businessman pleaded guilty today to bribing Puerto Rico Superior Court Judge Manuel Acevedo-Hernandez, who presided over the businessman’s vehicular homicide trial and acquitted him of all 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.
According to court documents, Lutgardo Acevedo-Lopez, 39, was 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, presided over the case and acquitted Acevedo-Lopez of all charges.
In his plea agreement, Acevedo-Lopez admitted that he bribed Acevedo-Hernandez to use his official position as a judge for Acevedo-Lopez’s benefit. Specifically, Acevedo-Lopez admitted that he 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 is scheduled to be sentenced on Dec. 8, 2014 before Chief U.S. District Judge Aida M. Delgado-Colón in San Juan, Puerto Rico.
Charges remain pending against Acevedo-Hernandez, who was charged with bribery-related offenses in an indictment unsealed on May 28, 2014, in the District of Puerto Rico. The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being 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 information about alleged public corruption are encouraged to contact the FBI’s San Juan Division at (787) 754-6000.Justice Department Obtains $100,000 Settlement in Housing Discrimination Lawsuit Against Cleveland LandlordRead the Press Release
The Justice Department announced today that the manager and owner of the Linden House Apartments in Cleveland have agreed to pay $100,000 to resolve allegations that they refused to rent to individuals because the individuals had children . The settlement must still be approved by U.S. District Judge Solomon Oliver Jr.
The settlement resolves a lawsuit filed by the Justice Department on September 30, 2013, against the Zaremba Management Company, the Linden Apartment Company and a property manager who worked at the Linden House Apartments. The United States alleged that the defendants violated the Fair Housing Act by maintaining a policy of refusing to rent units at Linden House to families with children. It also alleged that the Linden House Apartments had a policy of evicting tenants or asking tenants to relocate if they had children while living at Linden House. While the Fair Housing Act does allow housing that is reserved for older persons to limit residency to adults under certain circumstances, Linden House did not meet the requirements for this exemption.
The settlement requires the defendants to pay $90,000 to victims of their discriminatory actions, and to pay $10,000 in civil penalties to the United States. The settlement also requires the defendants to remove any restrictions on occupancy by families with children at the Linden House Apartments and to take certain steps such as training employees and reporting to the Department of Justice to make sure that such discriminatory policies are not implemented in the future.
“Finding decent, safe and affordable housing is critical for working families,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Such families should not be turned away from housing merely because they have children.”
“Families deserve the legal right to live where they can, and the Justice Department will continue to protect them from housing discrimination,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio.
Fighting illegal discrimination in housing is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt . Individuals who believe that they have been victims of housing discrimination or have information related to this lawsuit can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact the Department of Housing and Urban Development at 1-800-669-9777.
Related Materials:
Zaremba Consent Order
Deputy to Liberty Reserve Founder Pleads Guilty to Money LaunderingRead the Press Release
Azzeddine El Amine, 47, of San José, Costa Rica, pleaded guilty today to money laundering and operating an unlicensed money transmitting business in connection with his role in running Liberty Reserve, a company that operated one of the world’s most widely used digital currency services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara for the Southern District of New York made the announcement. The guilty plea was entered by U.S. District Judge Denise L. Cote of the Southern District of New York.
According to allegations contained in the indictment and statements made in related court proceedings, Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the Internet’s “largest payment processor and money transfer system.” Liberty Reserve was created, structured and operated to help users conduct illegal transactions anonymously and launder the proceeds of their crimes, and it emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity. Liberty Reserve was used extensively for illegal purposes, functioning as the bank of choice for the criminal underworld because it provided an infrastructure that enabled cybercriminals around the world to conduct anonymous and untraceable financial transactions.
El Amine served as a principal deputy to Liberty Reserve founder Arthur Budovsky and operated a prominent Liberty Reserve “exchanger” service, through which he shared in Liberty Reserve’s profits with Budovsky. Before being shut down by the government in May 2013, Liberty Reserve had more than one million users worldwide, including more than 200,000 users in the United States, who conducted approximately 55 million transactions through its system and laundered more than $6 billion in suspected proceeds of crimes, including credit card fraud, identity theft, investment fraud, computer hacking, child pornography and narcotics trafficking.
El Amine was arrested in Madrid, Spain, in May 2013, and pleaded guilty today to one count of conspiring to commit money laundering, one count of conspiring to operate an unlicensed money transmitting business and one count of operating an unlicensed money transmitting business. A sentencing date has not yet been scheduled .
This case is being investigated by the Secret Service, the Internal Revenue Service-Criminal Investigation and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, which worked together as part of the Global Illicit Financial Team. The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad, including the Secret Service’s New York Electronic Crimes Task Force, the Judicial Investigation Organization in Costa Rica, the National High Tech Crime Unit in the Netherlands, the Spanish National Police, Financial and Economic Crime Unit, the Cyber Crime Unit at the Swedish National Bureau of Investigation and the Swiss Federal Prosecutor’s Office.
The case is being prosecuted by Trial Attorney Kevin Mosley of the Criminal Division’s Asset Forfeiture and Money Laundering Unit and Assistant U.S. Attorneys Serrin Turner, Andrew Goldstein and Christine Magdo of the Southern District of New York. Support was also provided by the Criminal Division’s Office of International Affairs and Computer Crime and Intellectual Property Section.
The charges contained in the indictment against El Amine’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.Co-Founder of Government Contracting Company Pleads Guilty to Illegal Gratuity ChargeRead the Press Release
Timothy S. Miller, 58, a co-founder of a Chesapeake, Virginia, government contracting company, pleaded guilty today to providing illegal gratuities to two public officials working for the United States Navy Military Sealift Command.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Special Agent in Charge Susan Triesch of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, and Special Agent in Charge Royce E. Curtin of the FBI Norfolk Field Office made the announcement today after Miller’s guilty plea was accepted by United States Magistrate Judge Lawrence R. Leonard of the Eastern District of Virginia.
According to a statement of facts filed with the plea agreement, in February 2009, Miller, along with his business partner, Dwayne A. Hardman, co-founded a government contracting company that provided telecommunications support to the Military Sealift Command, which is the leading provider of transportation for the U.S. Navy.
At the plea hearing, Miller admitted that he provided illegal gratuities to two officials at the Military Sealift Command for favorable official acts. In particular, he admitted that on May 12, 2009, he gave $30,000 in cash to Kenny E. Toy, the former Afloat Programs Manager for the Military Sealift Command’s N6 Command, Control, Communication, and Computer Systems Directorate, and Scott B. Miserendino Sr., a government contractor who worked with Toy at the Military Sealift Command Headquarters. He also admitted that just two days after giving Toy and Miserendino the $30,000, he agreed that Hardman should give Toy and Miserendino an additional $20,000.
According to Miller’s statement of facts, Toy exercised substantial influence over the Military Sealift Command contracting process by creating and executing multi-million dollar budgets, obtaining funding for projects, developing and having access to sensitive information, and requesting that subcontract work be awarded to particular companies. As a result of the $50,000 payment, Miserendino and Toy performed various official acts to assist Miller’s company. Indeed, in 2009, Miller’s company received approximately $2.5 million in business from the Military Sealift Command.
As a condition of his plea agreement, Miller has agreed to forfeit $167,000. Miller is scheduled to be sentenced on November 7, 2014.
Earlier this year, five other individuals pleaded guilty in connection with the bribery scheme. On February 12, 2014, Toy pleaded guilty to bribery, and he was sentenced on July 29, 2014, to serve 96 months in prison and ordered to forfeit $100,000. On February 18, 2014, Hardman pleaded guilty to bribery, and he was sentenced on July 9, 2014, to serve 96 months in prison and ordered to forfeit $144,000. On February 19, 2014, Michael P. McPhail pleaded guilty to conspiracy to commit bribery, and he was sentenced on August 5, 2014, to serve 36 months in prison and ordered to forfeit $57,000. On March 5, 2014, Roderic J. Smith pleaded guilty to conspiracy to commit bribery, and he was sentenced on June 23, 2014, to serve 48 months in prison and ordered to forfeit $175,000. On April 4, 2014, Adam C. White pleaded guilty to conspiracy to commit bribery, and he was sentenced on July 11, 2014, to serve 24 months in prison and ordered to forfeit $57,000.
The case was investigated by the FBI, NCIS and DCIS. The case was prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia.
Registered Convicted Sex Offender Found Guilty of Attempted Production of Child Pornography and Traveling to Engage in Sex with a MinorRead the Press Release
A 65-year-old registered sex offender, with two prior convictions relating to possession of child pornography and attempted sexual conduct with minors, was found guilty today of attempting to produce child pornography, travel with intent to engage in illicit sexual conduct, transporting child pornography, possessing child pornography and offense by a registered sex offender.
Assistant Attorney General Leslie Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Josh Minkler for the Southern District of Indiana made the announcement. The verdict was rendered by U.S. District Judge Jane Magnus-Stinson.
According to the evidence introduced at trial, the defendant, John Alan Lewis, met an individual he believed to be a 14-year-old online in November 2011. From November 2011 until May of 2012, Lewis sent and received numerous images depicting a minor under the age of twelve engaging in sexually explicit conduct via emails with this individual, who actually was an adult male registered sex offender living in Queens, New York. Following the arrest of the individual in the Eastern District of New York, in August of 2012, law enforcement assumed this individual’s online identity and engaged in a series of online chats where the defendant expressed his desire to travel from Ohio to Indiana, pick the 14-year-old up, and take her to a motel to engage in sexual acts with her.
On Sept. 19, 2012, the defendant rented a car in Lima, Ohio, and drove to Plainfield, Indiana. He was arrested when he arrived at the agreed-upon meeting location. The defendant had in his possession three electronic devices, each of which contained images depicting a minor, between the ages of 10 and 12, fully nude and engaging in sexually explicit conduct.
Lewis has been in federal custody since he was arrested in September of 2012. Sentencing will be scheduled at a later date.
The investigation was conducted by the Indianapolis Metropolitan Police Department Cyber Crime Unit, the Indiana State Police Cyber Crime Unit, the FBI’s Violent Crimes Against Children Section and the Indiana Internet Crimes Against Children Task Force, which is made up of federal and state law enforcement agencies. The case is being prosecuted by Criminal Division Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Senior Litigation Counsel Steven D. DeBrota of the Southern District of Indiana.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Department of Justice Reaches Comprehensive Settlement with Crestwood School District to Improve Educational Services for English Language LearnersRead the Press Release
The Civil Rights Division of the Department of Justice, working closely with the U.S. Attorney’s Office for the Eastern District of Michigan, reached a comprehensive settlement agreement with the Crestwood School District in Dearborn Heights, Michigan, to improve educational services for students who are English Language Learners (ELLs), establish a system for recruiting and hiring faculty and staff and ensure that individuals who complain about discrimination do not face unlawful retaliation.
With the district’s cooperation, the department conducted a thorough investigation under multiple provisions of the Equal Educational Opportunities Act of 1974 (EEOA) of the district’s policies and practices. Most of the ELL students in the district are native Arabic speakers. The department concluded that the district failed to provide adequate services and materials for ELL students, employed an insufficient number of qualified teachers and administrators and did not monitor and evaluate its ELL program effectively. In addition, the department found significant shortfalls in the district’s communications with Limited English proficient (LEP) parents. Lastly, the department responded to allegations of employment discrimination in the hiring of Arab-American and African-American teachers and claims that individuals who complain about discrimination were subject to retaliation in violation of the EEOA.
The agreement requires the district to implement programmatic changes at the start of the
2014-15 school year and will remain in place for at least four years. Under the agreement, the district will:
· Provide all ELL students, including students with disabilities, with appropriate English as a Second Language (ESL) and sheltered content instruction taught by teachers who are properly qualified and trained;
· Develop a kindergarten through-12th grade ESL curriculum and conduct a comprehensive inventory of the instructional materials to ensure that each school has appropriate resources available;
· Provide ELL students and LEP parents with meaningful access to important information, including discipline and special education materials and procedures;
· Monitor the academic progress of current and former ELL students, and implement protocols to collect and evaluate the data concerning the effectiveness of ELL programs;
· Work with the Department of Justice Community Relations Service to improve parental outreach and community engagement by establishing a community advisory panel and implementing training on cultural competency;
· With the assistance of a qualified consultant, draft a comprehensive recruitment and hiring policy and implement best practices for recruiting, hiring, and retaining a qualified and diverse faculty and staff; and
· Institute internal complaint processes, and designate and train employees to investigate and resolve allegations of employment discrimination and/or retaliation.
“All students, regardless of their proficiency in English, deserve the opportunity to succeed and thrive in school,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “This robust and multifaceted agreement will eliminate barriers that obstruct the path to success for English language learners in the Crestwood schools.”
“Schools have an obligation to provide equal educational opportunities for students from diverse cultural backgrounds,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “We will continue to work cooperatively with the school district to monitor its compliance with the agreement.”
The enforcement of the Equal Educational Opportunities Act is a top priority of the
Justice Department’s Civil Rights Division. Additional information about the Civil Rights
Division of the Justice Department is available on its website at www.justice.gov/crt .
Related Materials:
Crestwood Settlement Agreement
Child Pornographer Sentenced to Five Years in Federal PrisonRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for Guam, announced that BERNARD DELA ROSA TOVES, was sentenced on Monday, August 12, 2014, in the U.S. District Court of Guam by Chief Judge Frances Tydingco-Gatewood. TOVES received a sentence of five years incarceration, and ten years of supervised release.
Defendant TOVES pled guilty on October 9, 2012, to one count of Receipt of Child Pornography, in violation of Title 18 U.S.C. Section 2252A(a)(2). Defendant TOVES utilized the peer to peer (P2P) network to receive 49 movies which depict the sexual abuse of young children. Defendant TOVES was ordered to register with the Sex Offender Registry wherever he lives, works or attends school.
U.S. Attorney Limtiaco states, “Child pornography offenses involve the sexual abuse and exploitation of children. These offenses are extremely serious because they result in perpetual harm to the child victims, and normalize the sexual exploitation of children. When the internet is utilized to obtain these images of child sexual abuse, the images can travel to offenders domestically and internationally anywhere in the world, to include the Pacific region. The U.S. Attorney’s Office is committed to aggressively prosecuting defendants who victimize and prey on children through any means, including through the use of the internet or computer."
The U.S. Attorney Limtiaco additionally reminds defendants who have committed sexual abuse of children, that under federal and local law, all sex offenders have a duty to register and keep their registration current with the Sex Offender Registry in their jurisdiction. Sex offenders who travel to Guam and who reside on Guam must inform the Guam Sex Offender Registry where they reside, work, or attend school - they must also periodically update their registration information. The U.S. Attorney notes that the sex offender registry was created in order to protect the public by protecting victims, preventing further victimization and informing the public of the whereabouts of sex offenders. Guam’s Sex Offender Registry can be found online at www.guamcourts.org.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in the sexual victimization of children and adults, possess or receive child pornography, and sex offenders who fail to register with the jurisdiction’s Sex Offender Registry.
The investigation was conducted by the Federal Bureau of Investigations. The case was handled by Assistant U.S. Attorney Rosetta San Nicolas.