District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Owners of Two Houston-Area Home Health Care Companies, Doctor, and Hospital Employee Sentenced for Their Roles in $3 Million Medicare Fraud SchemeRead the Press Release
Owners of two home health agencies, a doctor, and a hospital employee who sold patient information were all sentenced today for their roles in an $3 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Cardwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson for the Southern District of Texas, Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office, Special Agent in Charge Mike Fields of the Dallas Regional Office of HHS’s Office of the Inspector General (HHS-OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Valnita Turner, 48, Valdie Jackson, 43, Dr. Nick Patzakis, 86, and Jarvis Thomas, 40, were all sentenced today by U.S. District Judge Gray Miller in the Southern District of Texas.
On October 7, 2013, Valnita Turner, owner of Houston Compassionate Care, Inc., was convicted of one count of conspiracy to commit health care fraud and four counts of health care fraud. According to court documents, Turner and Valdie Jackson, owner of Jackson Home Healthcare, Inc., purchased stolen patient information from Jarvis Thomas, a hospital administrative employee. Turner and Jackson used the stolen patient information to submit fraudulent claims to Medicare for home health services purportedly provided by three home health agencies operating in the Houston area, Houston Compassionate Care, Inc., Jackson Home Healthcare, Inc., and Prestige Health Services, Inc.. Turner and Jackson also fraudulently billed Medicare for medically unnecessary home health services that were never ordered by a doctor and relied on doctors, including Dr. Nick Patzakis, to falsely sign medical documents.
Valnita Turner was sentenced to serve 151 months in prison. In addition to her prison term, Turner was sentenced to three years of supervised release and was ordered to pay $3,011,899.09 in restitution, jointly and severally with her co-defendants.
Valdie Jackson pleaded guilty to conspiracy to commit health care fraud on September 13, 2013. Jackson was sentenced to serve 12 months and one day in prison. In addition to his prison term, Jackson was sentenced to three years of supervised release and was ordered to pay $1,551,482.21 in restitution, jointly and severally with his co-defendants.
Dr. Nick Patzakis pleaded guilty to one count of false statements relating to health care matters on September 20, 2013. Dr. Patzakis was sentenced to time served and three years of supervised release. In addition, Dr. Patzakis was ordered to pay $95,947.57 in restitution, jointly and severally with his co-defendants.
Jarvis Thomas pleaded guilty to conspiracy to disclose individually identifiable health information on September 13, 2013. Thomas was sentenced to time served and three years of supervised release. Additionally, Thomas was ordered to pay $1,348,644.75 in restitution, jointly and severally with his co-defendants.
The case was prosecuted by Assistant Chief Robert Zink and Trial Attorneys Christopher Cestaro and Ashlee Caligone McFarlane of the Criminal Division’s Fraud Section. The case was investigated by the FBI, HHS-OIG and MFCU and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas.
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 for more than $6 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov .
One Year After Supreme Court’s Historic Windsor Decision, Attorney General Holder Issues Report Outlining Obama Administration’s Work to Extend Federal Benefits to Same-sex Married CouplesRead the Press Release
Following the Supreme Court’s historic decision striking down Section 3 of the Defense of Marriage Act, Attorney General Eric Holder on Friday issued a formal report on the yearlong effort by the Justice Department and other federal agencies to implement the decision smoothly across the entire government.
“I am pleased to report that agencies across the federal government have implemented the Windsor decision to treat married same-sex couples the same as married opposite-sex couples for the benefits and obligations for which marriage is relevant, to the greatest extent possible under the law," Attorney General Holder wrote in the memorandum to President Obama. “The implementation of the Windsor decision across the entire federal government is an accomplishment that reflects countless hours of hard work, cooperation, and coordination across agencies. As additional issues arise, we will continue to work together to uphold this Administration’s fundamental commitment to equal treatment for all Americans, and to extend this fundamental equality to all Americans.”At the President’s direction last year, a team of lawyers—led by Assistant Attorney General for the Civil Division Stuart Delery—began working with lawyers for other federal agencies to seek to extend federal benefits to same-sex marries couples, consistent with the Windsor decision. The department and the agencies have made many announcements on a rolling basis over the last several months. To date, for instance, the administration has announced that same-sex marriages will be recognized for all federal tax purposes, that health insurance and retirement benefits are available for same-sex spouses of all federal employees, and that the Defense Department will provide spousal benefits for same-sex spouses of military servicemembers.
In conferring these and other benefits, agencies have chosen to recognize marriages as valid based on the law of the jurisdiction where the marriage took place (the place of celebration), regardless of where the couple currently resides. As noted in the Attorney General’s report, however, two agencies—the Social Security Administration and Department of Veterans Affairs (VA)—are prohibited by federal statute from adopting a “place of celebration” rule for certain programs of critical importance to millions of Americans. The administration looks forward to working with Congress to fix these parts of the law to ensure that Americans who rely on these programs can obtain these essential benefits no matter where they live.
In the meantime, both the VA and Social Security Administration have sought to extend benefits to the absolute maximum extent, seeking out all legally available authority. As a result, for instance, the administration is able to announce today that the VA Acting Secretary has determined that he will exercise his broad statutory discretion in the area of burial benefits to designate any individual in a committed relationship for burial in a national cemetery, which will allow for the inclusion of same-sex spouses where the domicile provision would otherwise govern. In addition, SSA will extend survivor benefits, lump sum death benefits and aged spouse benefits to same-sex couples if one partner could inherit from the other partner on the same terms as a spouse under state law. This expands the number of states in which these benefits can be extended.
A full copy of the Attorney General’s report to the President is attached.
Related Materials:
Memo
Joint Statement from the Office of the Director of National Intelligence and the Department of Justice on the Declassification of Renewal of Collection Under Section 501 of the Foreign Intelligence Surveillance ActRead the Press Release
The Justice Department and the Office of the Director of National Intelligence released the following joint statement Friday:
Earlier this year in a speech at the Department of Justice, President Obama announced a transition that would end the Section 215 bulk telephony metadata program as it previously existed, and that the government would establish a mechanism that preserves the capabilities we need without the government holding this bulk data. As a first step in that transition, the President directed the Attorney General to work with the Foreign Intelligence Surveillance Court (FISC) to ensure that, absent a true emergency, the telephony metadata can only be queried after a judicial finding that there is a reasonable, articulable suspicion that the selection term is associated with an approved international terrorist organization. The President also directed that the query results must be limited to metadata within two hops of the selection term instead of three. These two changes were put into effect in February 2014. In addition to directing those immediate changes to the program, the President also directed the Intelligence Community and the Attorney General to develop options for a new approach to match the capabilities and fill gaps that the Section 215 program was designed to address without the government holding this metadata. After carefully considering the available options, the President announced in March that the best path forward is that the government should not collect or hold this data in bulk, and that it remain at the telephone companies with a legal mechanism in place which would allow the government to obtain data pursuant to individual orders from the FISC approving the use of specific numbers for such queries. The President also noted that legislation would be required to implement this option and called on Congress to enact this important change to the Foreign Intelligence Surveillance Act (FISA).
Consistent with the President’s March proposal, in May, the House of Representatives passed H.R. 3361, the USA FREEDOM Act, which would, if enacted, create a new mechanism for the government to obtain this telephony metadata pursuant to individual orders from the FISC, rather than in bulk. The bill also prohibits bulk collection through the use of Section 215, FISA pen registers and trap and trace devices, and National Security Letters. Overall, the bill’s significant reforms would provide the public greater confidence in our programs and the checks and balances in the system, while ensuring our intelligence and law enforcement professionals have the authorities they need to protect the Nation. The Administration strongly supports the USA FREEDOM Act. We urge the Senate to swiftly consider it, and remain ready to work with Congress to clarify that the bill prohibits bulk collection as noted above, as necessary.
Given that legislation has not yet been enacted, and given the importance of maintaining the capabilities of the Section 215 telephony metadata program, the government has sought a 90-day reauthorization of the existing program, as modified by the changes the President announced earlier this year. Consistent with prior declassification decisions, in light of the significant and continuing public interest in the telephony metadata collection program, the Director of National Intelligence, James Clapper, has declassified the fact that the government’s application to renew the program was approved yesterday by the FISC . The order issued yesterday expires on Sept. 12, 2014. The Administration is undertaking a declassification review of this most recent court order and an accompanying memorandum opinion for publication.Webb County Commissioner Pleads Guilty to Accepting Bribes in Exchange for Official ActionsRead the Press Release
Kristopher Michael Montemayor, a county commissioner for Precinct 1 of the Webb County Commissioners Court in Texas, pleaded guilty to bribery today.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson for the Southern District of Texas, and Special Agent in Charge Christopher H. Combs of the FBI’s San Antonio Division made the announcement.
Montemayor admitted that, while serving as county commissioner, he solicited and accepted bribes in exchange for promising to perform official acts. Specifically, Montemayor admitted that he accepted three separate bribe payments totaling $11,000, as well as over $2,700 in electronics equipment, from a businessman who, unbeknownst to Montemayor, was an undercover law enforcement agent. Montemayor admitted that, in exchange for the money and the equipment, he promised to take official action to promote the business interests of the undercover agent.
Additionally, Montemayor admitted to accepting the use of a new 2012 Ford F-150 truck, which costs approximately $37,015, in exchange for promising to provide government jobs to both the vehicle owner and his spouse. As a result of these job appointments, the vehicle owner and his wife received salaries of $26,000 and $45,553 from Webb County.
Montemayor is scheduled to be sentenced on Oct. 7, 2014 before U.S. District Judge Marina Garcia Marmolejo in Laredo, Texas.
This case is being investigated by special agents from the Laredo Resident Agency of FBI’s San Antonio Division. This case is being prosecuted by Trial Attorneys Emily Rae Woods and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section.Patient Recruiter Pleads Guilty in Miami for Role in $205 Million Health Care Fraud SchemeRead the Press Release
A former patient recruiter pleaded guilty today in Miami, Florida, for his role in a $205 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.
Michael Mendoza, 45, of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Jonathan Goodman in the Southern District of Florida to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Aug. 28, 2014.
According to court documents, during the course of the conspiracy, Mendoza was the president of Network Resource Consultant Inc., a Florida corporation, and he served as a patient recruiter for American Therapeutic Corporation (ATC), a defunct partial hospitalization program located in Miami that purported to provide intensive psychiatric services. Mendoza made an agreement with Lawrence Duran, the owner of ATC, and others to refer residents living in assisted living facilities throughout the Southern District of Florida to ATC in exchange for illegal health care kickbacks. Mendoza’s referrals to ATC were for purported mental health services.
Throughout the course of the ATC conspiracy, millions of dollars in kickbacks were paid in exchange for Medicare beneficiaries, who did not qualify for PHP services, to attend treatment programs that were not legitimate PHP programs so that ATC and related companies could bill Medicare for more than $205 million in medically unnecessary services. ATC submitted approximately $436,450 in false and fraudulent claims to Medicare for Mendoza’s beneficiary referrals.
Duran pleaded guilty and was sentenced to serve 50 years in prison for his role in orchestrating the fraud scheme.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Assistant Chief Robert Zink and Trial Attorney Allan J. Medina 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, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Justice Department and Consumer Financial Protection Bureau Reach $169 Million Settlement to Resolve Allegations of Credit Card Lending Discrimination by GE Capital Retail BankRead the Press Release
The Department of Justice and the Consumer Financial Protection Bureau (CFPB) today announced a settlement to resolve allegations that GE Capital Retail Bank, known as of this month as Synchrony Bank, engaged in a nationwide pattern or practice of discrimination by excluding Hispanic borrowers from two of its credit card debt-repayment programs. The settlement resolves claims by the department and the CFPB that GE Capital violated the Equal Credit Opportunity Act (ECOA) by excluding borrowers who indicated that they preferred communications to be in Spanish or had a mailing address in Puerto Rico from two credit card debt-repayment programs. The agreement is a joint fair lending enforcement action by the department and the CFPB and is the federal government’s largest credit card discrimination settlement in history.
The settlement provides $169 million in relief to approximately 108,000 borrowers in the form of monetary payments and the reduction, or complete waiver, of borrowers’ credit card balances. GE Capital itself identified and reported the discrimination to the CFPB, was proactive in taking steps toward providing relief to affected borrowers, and has worked closely with the department and the CFPB to further identify and compensate victims of the discrimination. Specifically, GE Capital has already provided the benefits of the offers or their equivalent value to approximately 84,000 borrowers, totaling $131.8 million in relief. Following the settlement, the bank will provide the remaining $37 million in payments, reductions and waivers to affected borrowers.
“The blatant discrimination that occurred here is unlawful and will not be tolerated,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “Borrowers have the right to credit card terms that do not differ based on their national origin, and the settlement today sends the message that the Justice Department can and will vigorously enforce the law against lenders who violate that right.”
“Discrimination has no place in the consumer financial marketplace,” said CFPB Director Richard Cordray. “No one should be excluded from credit opportunities simply because of where they live or the language they speak.”
According to the United States’ complaint, the department alleges that from January 2009 to March 2012, GE Capital excluded certain borrowers, due to their national origin, from the “Statement Credit Offer” – a program offering eligible borrowers a credit to their account if they met certain criteria – and the “Settlement Offer” – a program offering eligible borrowers the chance to settle their credit card debt if they paid a percentage of their remaining account balance, ranging from 25 percent to 55 percent. As a result of the exclusions, Hispanic borrowers experienced higher debt levels and longer periods of debt; some of these Hispanic borrowers may have suffered additional consequential economic damages, including increased risk of credit problems, default and repossession; having their accounts closed or “charged-off” and sold to a third party; and other damages, including emotional distress.
GE Capital’s settlement with the department, which is subject to court approval, was filed today in the U.S. District Court for the District of Utah in conjunction with the department’s complaint. GE Capital resolved the CFPB’s claims by entering into a public administrative settlement.
In addition to the $169 million dollars in relief, GE Capital has also agreed to eliminate negative credit reports for affected borrowers that occurred during periods of the alleged discrimination . GE Capital will also take affirmative steps to strengthen its fair lending compliance, and the department commends the efforts the bank has already taken to that end. These steps put in place strong review mechanisms and training to ensure borrowers are not discriminated against because of their national origin.
The department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Rights Division. Since the Fair Lending Unit was established in February 2010 , it has filed or resolved 34 lending matters under the Fair Housing Act, ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for more than $1 billion in monetary relief for impacted communities and individual borrowers. The Attorney General’s annual reports to Congress subject to ECOA highlight the department’s accomplishments in fair lending and are available at the division website .
The Civil Rights Division and the CFPB are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov .Related Materials:
GE Capital Complaint
Consent OrderHouston Man Charged with Biofuels Fraud SchemeRead the Press Release
A federal grand jury in Houston, Texas, today indicted Philip Joseph Rivkin, a/k/a Felipe Poitan Arriaga, for offenses involving a federal renewable fuel program that allegedly netted him more than $29 million, the Justice Department’s Environment and Natural Resources Division announced. The 68-count indictment against Rivkin, 49, of Houston and most recently, Guatemala City, Guatemala, includes allegations of wire fraud, mail fraud, Clean Air Act false statements, and money laundering.
The indictment was unsealed late Thursday following Rivkin’s initial appearance in federal court in Houston. He was arrested on Wednesday evening when he arrived in Houston from Guatemala, which had deported him earlier in the day after learning that he had fraudulently secured Guatemalan citizenship.
The Energy Independence and Security Act of 2007 created or extended several federally-funded programs that created monetary incentives for the production of renewable fuels, including biodiesel, and to encourage the use of such fuels in the United States. Authorized biodiesel producers and importers could generate and attach credits—known as “renewable identification numbers” or “RINs”—to biodiesel they produced or imported. Because certain companies need RINs to comply with regulatory obligations, RINs have significant market value.
The indictment alleges that beginning around February of 2009, Rivkin operated and controlled several companies in the fuel and biodiesel industries, including Green Diesel LLC, Fuel Streamers Inc., and Petro Constructors LLC, all based in Houston. It is alleged that Rivkin claimed to produce millions of gallons of biodiesel at the Green Diesel’s Houston facility and then generated and sold RINs based upon this claim. In reality, no biodiesel was ever produced at the Green Diesel facility. The indictment alleges that this scheme allowed the defendant to generate approximately 45 million RINs that were fraudulent, which were then sold to companies that needed to obtain them and resulted in millions of dollars in sales. Rivkin is also alleged to have caused fraudulent tax credit claims based on fictitious biodiesel production.
The indictment goes on to allege that the defendant created false records and made false statements to conceal his fraudulent claims of biodiesel production, importation and RIN generation. Finally, the indictment alleges that the defendant laundered the proceeds of his crimes, using banking institutions and complex financial transactions to benefit from the illegal funds he received, and to attempt to protect these funds from government enforcement. The indictment includes a notice of forfeiture to include: cash in excess of $29 million; three vehicles including a Lamborghini, Maserati, and a Bentley; a Canadair LTD airplane; and millions of dollars worth of artwork that was previously seized from Rivkin in 2012 and is now included in a civil action for forfeiture.
An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The collaborative investigation that led to today’s indictment and yesterday’s arrest was the result of work by EPA’s Criminal Investigation Division, the United States Secret Service, Internal Revenue Service Criminal Investigation, and Homeland Security Investigations. The Guatemalan Special Investigations Unit worked with federal investigators to uncover the fraudulent nature of Rivkin’s Guatemalan citizenship, which led to his deportation back to the United States.
The case is being prosecuted by Trial Attorney Leslie E. Lehnert of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.Former Owner of Physical Therapy Clinic Sentenced to Prison in Connection with Health Care Fraud Scheme<br />Read the Press Release
A Florida man who was convicted of conspiracy to commit health care fraud was sentenced to serve 27 months in prison today in federal court in Tampa, Florida.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Florida A. Lee Bentley III, Acting Special Agent in Charge Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region, and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
Jose Pascual, 36, previously pleaded guilty to an information charging him with conspiracy to commit health care fraud. In addition to his prison term, he was sentenced to serve three years of supervised release and ordered to pay $1,292,375 in restitution, jointly and severally with his co-conspirators.
According to documents filed in the case, in February 2007, Pascual purchased R&R Outpatient LLC, an outpatient physical therapy provider with locations in Fort Myers and Ocala, Florida. Pascual and his co-conspirators then caused reimbursement claims to be submitted on behalf of R&R Outpatient to Medicare fraudulently representing that physical and occupational therapy services had been legitimately prescribed by physicians and provided to Medicare beneficiaries. Pascual and his co-conspirators fabricated medical records to support the fraudulent claims. As a result of the fraudulent claims, Medicare paid approximately $1,124,826 to R&R Outpatient. Pascual and his co-conspirators also recycled Medicare beneficiary information from R&R Outpatient in order to submit fraudulent reimbursement claims to Medicare through other clinics.
This case was investigated by HHS-OIG and the FBI 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 Florida. The case was prosecuted by Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Simon Gaugush.
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 .El Departamento de Justicia y la Oficina para la Protección Financiera del Consumidor Realizan Acuerdo Conciliatorio de 169 Millones de Dólares en Resolución de Hechos de Alegatos de Discriminación en el Ot...Read the Press Release
WASHINGTON – El Departamento de Justicia y la Oficina para la Protección Financiera del Consumidor [Consumer Financial Protection Bureau (CFPB)] anunciaron hoy un acuerdo conciliatorio en resolución de alegatos de que GE Capital Retail Bank, conocido a partir de este mes como Synchrony Bank, exhibió un patrón o práctica nacional de discriminación al excluir a prestatarios hispanos de dos de sus programas de cancelación de deudas de tarjeta de crédito. El acuerdo conciliatorio resuelve alegaciones por parte del departamento y la CFPB que GE Capital violó la Ley de Igualdad de Oportunidades de Crédito [Equal Credit Opportunity Act (ECOA)] al excluir a prestatarios que indicaron que preferían que las comunicaciones fueran en español o tenían dirección postal en Puerto Rico de dos programas de cancelación de deudas de tarjeta de crédito. El acuerdo es una acción de coacción de préstamos justos conjunto del departamento y la CFPB y es históricamente el mayor acuerdo conciliatorio de discriminación asociado a tarjetas de crédito del gobierno federal.
El acuerdo conciliatorio dispone el pago de 169 millones de dólares como reparación a alrededor de 108,000 prestatarios, en la forma de pagos monetarios, y la reducción o dispensa total de los saldos de las tarjetas de crédito de los prestatarios. El propio GE Capital identificó y reportó la discriminación a la CFPB, fue proactivo en tomar medidas para proporcionar reparación a los prestatarios afectados, y ha trabajado estrechamente con el departamento y la CFPB para identificar e indemnizar a otras víctimas de dicha discriminación. Específicamente, GE Capital ya ha provisto los beneficios de las ofertas o su valor equivalente a aproximadamente 84,000 prestatarios por un total de $131.8 millones en reparación. Según el acuerdo conciliatorio, el banco proveerá los $37 millones restantes en pagos, reducciones y dispensas a los prestatarios afectados.
"La evidente discriminación exhibida en este caso es ilegal y no será tolerada", señaló la Secretaria de Justicia Auxiliar Interina Jocelyn Samuels de la División de Derechos Civiles. "Los prestatarios tienen derecho a términos de tarjeta de crédito que no difieran según su origen nacional, y el acuerdo conciliatorio de hoy transmite el mensaje de que el Departamento de Justicia puede hacer valer la ley enérgicamente contra los prestamistas que violen dicho derecho, y así lo hará".
"La discriminación no tiene lugar en el mercado financiero de consumo. Nadie debe ser excluido de oportunidades de crédito simplemente debido a dónde vive o el idioma que habla", señaló el Director de la CFPB Richard Cordray.
De acuerdo con la demanda presentada por los Estados Unidos, el departamento alega que, entre enero de 2009 y marzo de 2012, GE Capital excluyó a ciertos prestatarios debido a su origen nacional, de su "Oferta de crédito de estado de cuenta" – un programa que ofrecía a prestatarios elegibles un crédito en su cuenta si cumplían con ciertos criterios – y la "Oferta de cancelación" – un programa que ofrecía a prestatarios elegibles la oportunidad de cancelar su deuda de tarjeta de crédito si pagaban un porcentaje del saldo pendiente de la cuenta, equivalente a entre el 25 y el 55 por ciento. Como resultado de las exclusiones, los prestatarios hispanos fueron objeto de niveles de deuda más altos y períodos más largos de deuda; algunos de estos prestatarios hispanos pueden haber sufrido daños económicos consecuenciales adicionales, incluidos mayor riesgo de problemas de crédito, insolvencia y reposesión, les pueden haber cerrado las cuentas, sus cuentas pueden haber sido contabilizadas como "incobrables" y vendidas a terceros, y pueden abrir sufrido otros daños, tales como sufrimiento emocional.
El acuerdo conciliatorio de GE Capital con el departamento, el que está sujeto a la aprobación del tribunal, fue presentado hoy en el Tribunal Federal de Distrito para el Distrito de Utah en conjunto con la demanda del departamento. GE Capital resolvió los alegatos del CFPB por medio de un acuerdo conciliatorio administrativo público.
Además de los 169 millones de dólares en reparación, GE Capital también ha aceptado eliminar los informes de crédito negativos de los prestatarios afectados, emitidos durante períodos de la supuesta discriminación. GE Capital también tomará medidas afirmativas para fortalecer su cumplimiento con las leyes de préstamos justos, y el departamento aplaude los esfuerzos del banco, realizados hasta el momento con dicha finalidad. Estos pasos implementan fuertes mecanismos de revisión y capacitación para garantizar que no se discrimine contra prestatarios debido a su origen nacional.
La coacción asociada a las leyes de otorgamiento justo de préstamos por parte del departamento es llevada a cabo por la Unidad de Préstamos Justos de la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. Desde que se estableció la Unidad de Préstamos Justos en febrero de 2010, ésta ha entablado o resuelto 34 casos de préstamos bajo la Ley de Vivienda Justa, la ECOA y la Ley de Alivio Civil para los Miembros de las Fuerzas Armadas [Servicemembers Civil Relief Act]. Los acuerdos conciliatorios en estos casos proveen más de 1,000 millones de dólares en reparación monetaria para comunidades y prestatarios individuales afectados. Los informes anuales del Secretario de Justicia de EE.UU. al Congreso bajo ECOA destacan los logros del departamento en el otorgamiento de préstamos justos y están disponibles en el portal de la división en Internet.
La División de Derechos Civiles y la CFPB son miembros de la Fuerza de Tarea de Coacción contra el Fraude Financiero. El Presidente Obama fundó la Fuerza de Tarea de Coacción contra el Fraude Financiero interagencial para generar una iniciativa enérgica, coordinada y proactiva para investigar y enjuiciar los delitos financieros. La fuerza de tarea incluye a representantes de un amplio rango de agencias federales, autoridades regulatorias, inspectores generales y fuerzas del orden público estatales y locales quienes, trabajando juntos, ponen en uso un conjunto poderoso de recursos de coacción penal y civil. La fuerza de tarea está trabajando para mejorar las iniciativas en todo el poder ejecutivo federal y, junto con asociados estatales y locales, investigar y enjuiciar delitos financieros importantes, garantizar un castigo justo y eficaz para quienes cometen delitos financieros, combatir la discriminación en los mercados de préstamos y financieros, y recuperar ganancias para las víctimas de delitos financieros. Para obtener más información sobre la fuerza de tarea, visite www.StopFraud.gov.
El Departamento de Justicia Realiza Acuerdo Conciliatorio con el Distrito Escolar del Condado de Clay, Alabama, para Garantizar Igualdad de Oportunidades para Estudiantes del Programa Aprendiz del Idioma InglésRead the Press Release
El Departamento de Justicia anunció hoy un acuerdo conciliatorio con el Distrito Escolar del Condado de Clay en Alabama. Con la cooperación del distrito, el departamento llevó a cabo una revisión de cumplimiento del programa Aprendiz del Idioma Inglés [English Language Learner (ELL)] del distrito, para determinar si los estudiantes de ELL del distrito estaban recibiendo servicios exigidos por la Ley de Igualdad de Oportunidades Educativas [Equal Educational Opportunities Act of 1974 (EEOA)] de 1974.
El acuerdo conciliatorio de tres años de duración garantizará que este distrito rural tome medidas adecuadas para atender a su población pequeña pero creciente de estudiantes de ELL, incluidos: brindar más servicios para estudiantes de ELL, obtener instructores adicionales con certificación como instructores de inglés como segundo idioma, brindar oportunidades de desarrollo profesional significativas para docentes, brindar materiales y medios de apoyo adecuados para las salas de aula de estudiantes de ELL, monitorear del desempeño académico de estudiantes de ELL actuales y anteriores, y mejorar la comunicación accesible en términos idiomáticos con los padres con conocimientos limitados del idioma inglés.
"El Departamento de Justicia se compromete a asegurar que todos los aprendices del idioma inglés reciban los servicios que requieren para el éxito, inclusive en un distrito rural pequeño como el Distrito Escolar del Condado de Clay", señaló Jocelyn Samuels, Secretaria de Justicia Auxiliar Interina de la División de Derechos Civiles. "Aplaudimos la decisión del Distrito Escolar del Condado de Clay de realizar este importante acuerdo. Nos complacerá seguir trabajando en conjunto con el distrito en satisfacer las diversas necesidades de sus aprendices del idioma inglés".
Hacer valer la Ley de Igualdad de Oportunidades Educativas es una de las principales prioridades de la División de Derechos Civiles del Departamento de Justicia. Este año se cumplen 40 años de la promulgación de la EEOA. Para obtener información adicional sobre la División de Derechos Civiles del Departamento de Justicia, visite www.justice.gov/crt.
Documentos Relacionados:
- Acuerdo de Resolución entre los Estados Unidos y el Distrito Escolar del Condado de Clay
Department of Justice Reaches Settlement with Clay County, Alabama School District to Ensure Equal Opportunities for English Language Learner StudentsRead the Press Release
The Justice Department announced today a settlement agreement with the Clay County School District in Alabama. With the district’s cooperation the department conducted a compliance review of the district’s English Language Learner (ELL) program to determine whether the district’s ELL students were receiving services required by the Equal Educational Opportunities Act of 1974 (EEOA).
The three-year settlement agreement will ensure that this rural district takes appropriate action to serve its small but growing population of ELL students, including: increasing services for ELL students, obtaining additional English as a Second Language-certified instructors, conducting significant professional development for teachers, providing adequate materials and classroom supports for ELL students, monitoring the academic performance of current and former ELL students and improving language-accessible communication with limited English proficient parents.
“The Department of Justice is committed to ensuring that all English language learners are provided the services they need to succeed, including in a small rural district like the Clay County School District,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “We applaud the Clay County School District’s decision to enter into this important agreement and look forward to continuing to work cooperatively with the district to address the diverse needs of its English language learners.”
The enforcement of the Equal Educational Opportunities Act is a top priority of the Justice Department’s Civil Rights Division. This year marks the 40th anniversary of the EEOA. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt .Related Materials:
Clay County Agreement
Office Worker Pleads Guilty in Miami for Role in $7 Million Health Care Fraud SchemeRead the Press Release
An office worker pleaded guilty today in connection with a health care fraud scheme involving Anna Nursing Services Corp. (Anna Nursing), a defunct home health care company.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Brian Martens of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.
Lizette Garcia, 37, of Miami, Florida, pleaded guilty before U.S. District Judge Joan A. Lenard in the Southern District of Florida to one count of payment of health care kickbacks. Sentencing is scheduled for Aug. 27, 2014.
Garcia was an office worker at Anna Nursing, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. According to court documents, Anna Nursing was operated for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were medically unnecessary and/or were not provided.
On behalf of the owners and operators of Anna Nursing, Garcia paid kickbacks and bribes to patient recruiters in return for the recruiters providing patients to Anna Nursing for home health care and therapy services that were medically unnecessary and/or were not provided. Anna Nursing then billed the Medicare program on behalf of the recruited patients, which Garcia knew was in violation of federal criminal laws.
From approximately October 2010 through approximately April 2013, Anna Nursing was paid by Medicare approximately $7 million for fraudulent claims for home health care services that were medically unnecessary and/or were not provided.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne McNamara 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 for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, has removed over 17,000 providers from the Medicare program since 2011.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Credit Repair Company Agrees to Pay $400,000 Civil Penalty and Halt Illegal Credit Repair PracticesRead the Press Release
The Justice Department’s Civil Division announced today that RMCN Credit Services Inc. (RMCN), of McKinney, Texas, and the Texas residents who own it, Doug and Julie Parker, have agreed to settle a federal court case charging them with falsely disputing negative information on consumers’ credit reports and collecting illegal upfront fees from customers. The defendants have agreed to an order that puts an end to these practices, which are illegal under the Credit Repair Organizations Act (CROA), and pay civil penalties.
“This consent order sends a strong signal to the credit repair industry that we will enforce the law against companies that abuse the credit reporting system by flooding it with false disputes,” said Assistant Attorney General Stuart F. Delery of the Civil Division. “This conduct degrades the accuracy of credit reports and raises costs for all consumers.”
In a complaint filed on behalf of the Federal Trade Commission (FTC) in the U.S. District Court for the Eastern District of Texas, the United States alleged that the defendants operated a credit repair company that offered to improve consumers’ credit scores by disputing negative information on their credit reports. The complaint alleged that RMCN and Doug and Julie Parker lodged false disputes with credit bureaus by sending “consumer” letters raising fabricated disputes over negative information in its customers’ reports. For example, the letters made false statements such as “I was never late” or “This is not my account.” The government’s case further alleged that these letters were not written by consumers. According to the government’s court filings, RMCN sent more than a million dispute letters during the five-year period preceding the complaint (October 2006 to October 2011). This forced credit bureaus and creditors to incur costs responding to bogus letters, which ultimately raised the cost of credit for all consumers.
The complaint also alleged that RMCN charged their customers for credit repair services before those services were fully performed. In particular, the government alleged that defendants charged a significant portion of their fee before any credit repair work began.
The agreed order prohibits defendants from making any untrue or misleading statements to consumer reporting agencies or creditors, prohibits them from charging advance fees for credit repair services, and bars them from making misrepresentations in connection with the sale of any good or service. The order also imposes a civil penalty of $2.35 million. If the defendants pay $400,000, the remainder of the judgment will be suspended based on the defendants’ inability to pay the full amount of the penalty.
Congress enacted CROA to protect the public from unfair and deceptive advertising and business practices by credit repair organizations. CROA prohibits credit repair companies from making false statements, or statements they reasonably should have known were false, to credit bureaus and creditors concerning consumers’ credit standing or creditworthiness. CROA also forbids credit repair companies from charging customers for credit repair services before those services are fully performed.
In agreeing to settle this matter, defendants have not admitted that they knowingly violated CROA.
The case was handled by Trial Attorney Tim Finley of the Civil Division’s Consumer Protection Branch, Assistant U.S. Attorney Kevin McClendon of the U.S. Attorney’s Office for the Eastern District of Texas, and Tom Carter, Emily Robinson and Luis Gallegos of the FTC.Libyan National Charged with Federal Offenses in 2012 Attack on U.S. Special Mission and Annex in BenghaziRead the Press Release
Ahmed Abu Khatallah, aka Ahmed Mukatalah, a Libyan national approximately 43 years of age, has been charged for his alleged participation in the Sept. 11, 2012, attack on the U.S. Special Mission and Annex in Benghazi, Libya, which resulted in the deaths of four Americans.
“Our nation’s memory is long, and our reach is far,” said U.S. Attorney General Eric Holder. “The arrest of Ahmed Abu Khatallah represents a significant milestone in our efforts to ensure justice is served for the heinous and cowardly attack on the U.S. diplomatic facility in Benghazi. Since that attack – which caused the deaths of Ambassador J. Christopher Stevens, Sean Smith, Tyrone Woods and Glen Doherty – we have conducted a thorough, unrelenting investigation, across continents, to find the perpetrators. The arrest of Khatallah proves that the U.S. government will expend any effort necessary to pursue terrorists who harm our citizens. Khatallah currently faces criminal charges on three counts, and we retain the option of adding additional charges in the coming days. Even as we begin the process of putting Khatallah on trial and seeking his conviction before a jury, our investigation will remain ongoing as we work to identify and arrest any co-conspirators. This is our pledge; we owe the victims of the Benghazi attack and their loved ones nothing less.”
“The terrorist attacks on our diplomatic facilities in Benghazi were an affront to our nation and heartbreaking for the families of the four courageous Americans who perished that day,” said John Carlin, Assistant Attorney General for the National Security Division. “Capturing Ahmed Abu Khatallah was a critical step toward bringing him to justice, and we will not rest in our pursuit of the others who attacked our facilities and killed our citizens.”
“In July 2013, Ahmed Abu Khatallah was charged in a sealed criminal complaint in the District of Columbia for his alleged role in the attacks that resulted in the murders of four American citizens, including Ambassador Christopher Stevens, in Benghazi, Libya,” said U.S. Attorney Ronald C. Machen Jr. for the District of Columbia. “Khatallah will now face justice in an American courtroom. We remain committed to holding accountable all of those responsible for the murders of those brave U.S. citizens who were serving our country in Libya.”
The charges were announced upon the unsealing of a three-count criminal complaint. The lead count in the complaint is a death-eligible offense. The complaint, which was filed under seal on July 15, 2013, in the United States District Court for the District of Columbia, charges Khatallah with:-- Killing a person in the course of an attack on a federal facility involving the use of a firearm and dangerous weapon and attempting and conspiring to do the same.
-- Providing, attempting and conspiring to provide material support to terrorists resulting in death.
-- Discharging, brandishing, using, carrying and possession of a firearm during and in relation to a crime of violence.
Khatallah is in U.S. custody, and upon his arrival to the U.S. he will be promptly presented before a federal judge in Washington, D.C., and appointed counsel.
Charges contained in criminal complaints are merely allegations that a defendant has committed a violation of criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.The case is being investigated by the FBI’s New York Field Office with substantial assistance from various other government agencies. The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the National Security Division of the U.S. Department of Justice.
Related Materials:
Complaint
Former Maryland Division of Corrections Lieutenant Sentenced for Obstruction of JusticeRead the Press Release
Edwin Stigile III, formerly a lieutenant at the Roxbury Correctional Institution (RCI) in Hagerstown, Maryland, was sentenced today by U.S. District Court Judge James K. Bredar to serve 36 months in prison for obstruction of justice in connection with his involvement in a series of assaults against an inmate, Kenneth Davis, at RCI.
On Jan. 9, 2014, Stigile pleaded guilty to a charge of destruction of records. According to court documents filed in connection with his guilty plea, Stigile acknowledged that he intentionally used a magnetic device to erase incriminating surveillance video footage related to the RCI officers’ assaults of Davis. RCI officers from three different shifts assaulted Davis in March 2008, in retaliation for a prior incident in which Davis struck an officer. Stigile also instructed an officer to hide the magnetic device after the surveillance footage was destroyed. In September 2012, Stigile made false and misleading statements to federal authorities and a federal grand jury in an attempt to obstruct the federal investigation related to the assaults.
“The defendant participated in the cover-up of the assaults suffered by Mr. Davis, and then he lied to cover up this crime,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The defendant’s actions run completely counter to the responsibilities and trust given to a supervisor at a correctional facility. The Justice Department will continue to vigorously prosecute those officers who, like this defendant, try to cover up the misconduct of other officers.”
To date, 16 current or former officers at RCI were convicted in connection with the series of assaults that Davis suffered on March 8 through 9, 2008. One former officer still awaits sentencing.
The case was investigated by the Frederick Resident Agency of the FBI, and prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division, with the assistance of Assistant U.S. Attorney Michael Cunningham for the District of Maryland.
Federal Government and State Attorneys General Reach Nearly $1 Billion Agreement with SunTrust to Address Mortgage Loan Origination as Well as Servicing and Foreclosure AbusesRead the Press Release
The Justice Department, Department of Housing and Urban Development (HUD), and the Consumer Financial Protection Bureau (CFPB), along with 49 state attorneys general and the District of Columbia’s attorney general have reached a $968 million agreement with SunTrust Mortgage Inc. (SunTrust) to address mortgage origination, servicing, and foreclosure abuses.
The joint agreement is the result of extensive investigations by federal agencies, including the Department of Justice, HUD and the HUD Office of the Inspector General (HUD-OIG), CFPB and state attorneys general across the country, and includes recoveries for both improper mortgage origination and servicing practices.
“SunTrust’s conduct is a prime example of the widespread underwriting failures that helped bring about the financial crisis,” Attorney General Eric Holder said. “From mortgage origination to servicing to securitization, the Department of Justice is attacking every facet of conduct that led to the Great Recession. We will continue to hold accountable financial institutions that, in the pursuit of their own financial interests, misuse public funds and cause harm to hardworking Americans. We expect that there will be more cases like this to come.”
“This agreement, which totals nearly $1 billion, not only holds SunTrust accountable for years of abusive practices mortgage origination practices; it also provides for restoration,” said Associate Attorney General Tony West. “By the terms of this resolution, SunTrust is required to provide $500 million in consumer relief for homeowners as well as abide by terms that will help to prevent the abuses of the past from being repeated. It's a result attained thanks to the close coordination among our enforcement agency partners throughout the government."
As part of the settlement, SunTrust has agreed to pay $418 million to resolve its potential liability under the federal False Claims Act for originating and underwriting loans that violated its obligations as a participant in the Federal Housing Administration (FHA) insurance program. As a participant in that program, SunTrust had the authority to originate, underwrite and certify mortgages for FHA insurance.
SunTrust admitted that between January 2006 and March 2012, it originated and underwrote FHA-insured mortgages that did not meet FHA requirements, that it failed to carry out an effective quality control program to identify non-compliant loans, and that it failed to self-report to HUD even the defective loans it did identify. SunTrust also admitted that numerous audits and other documents disseminated to its management between 2009 and 2012 described significant flaws and inadequacies in SunTrust’s origination, underwriting, and quality control processes, and notified SunTrust management that as many as 50 percent or more of SunTrust’s FHA-insured mortgages did not comply with FHA requirements. For example, a 2012 internal SunTrust document noted two “significant” issues that had been plaguing the company for years – a “Broken Loan Origination Process” coupled with a “Deficient Government Insuring Process.” Other reports received by SunTrust management described its quality control program as “severely flawed” and “ineffective.” These reports described to management that the volume of problems in the program was “excessive,” and that the error rates were “elevated” and at an “unacceptable level.”
“SunTrust’s irresponsible FHA lending practices caused grievous harm to homeowners and the housing market, as well as wasting hundreds of millions of dollars in taxpayer funds,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “As this settlement demonstrates, we will continue to hold accountable financial institutions that misuse public funds and ruin the lives of hardworking Americans in the pursuit of their own financial interests.”
The servicing portion of the agreement parallels the $25 billion National Mortgage Settlement (NMS) reached in February 2012 between the federal government, 49 state attorneys general and the District of Columbia’s attorney general and the five largest national mortgage servicers. Under the agreement announced today, SunTrust has agreed to provide $500 million in additional relief in the next three years directly to borrowers and homeowners in the form of reducing the principal on mortgages for borrowers who are at risk of default, reducing mortgage interest rates for homeowners who are current but underwater on their mortgages, and other relief. The settlement will likely provide direct benefits to borrowers far in excess of $500 million because SunTrust will not be permitted to claim credit for every dollar spent on the required consumer relief. SunTrust has also agreed to pay $50 million in cash to redress its servicing practices, $40 million of which will be distributed to borrowers and homeowners through the Borrower Payment Fund established by the NMS and administered by the states.
“This agreement with SunTrust is another step forward in the Obama Administration’s ongoing effort to hold mortgage lenders accountable,” said HUD Acting Deputy Secretary Helen Kanovsky. “By using the framework of the National Mortgage Settlement, we will ensure that SunTrust provides mortgage relief to struggling homeowners in the hardest hit communities and changes their worst practices. HUD will continue working with the Department of Justice, CFPB and state attorneys general to hold lenders accountable and require them to institute practices that are beneficial to borrowers and the FHA fund.”
“The culmination of this case today represents the long hours dedicated by auditors, investigators, counsel and the data analytics team in the Office of Inspector General to address the significant problems we identified in SunTrust’s underwriting,” said HUD Inspector General David A. Montoya. “The case begins and ends with the crucial work produced by this office and the commitment by my staff to work with the Department of Justice, HUD and others in a concerted effort to combat misrepresentation and fraud against vital government programs. My office will continue to aggressively seek out instances in which the FHA, and by extension the American taxpayer, are harmed by misconduct that should not be tolerated.”“Deceptive and illegal mortgage servicing practices have pushed families into foreclosure and devastated communities across the nation,” said CFPB Director Richard Cordray. “Today’s action will help homeowners and consumers harmed by SunTrust’s unlawful foreclosure practices. The Consumer Bureau will continue to investigate mortgage servicers that mistreat consumers, and we will not hesitate to take action against any company that violates our new servicing rules.”
“Homeownership is the bedrock of the American dream, and we continue to address the many mortgage servicing nightmares that homeowners across the country experienced for years,” said Iowa state Attorney General Tom Miller. “State attorneys general are working across party lines with our federal partners to address past practices, and we’re trying to ensure that borrowers are treated more fairly in the future.”
The joint federal-state agreement also requires SunTrust to implement significant changes in how they service mortgage loans, handle foreclosures, and ensure the accuracy of information provided in federal bankruptcy court. The agreement requires new servicing standards which will prevent foreclosure abuses of the past, such as robo-signing, improper documentation and lost paperwork, and create dozens of new consumer protections. The new standards provide for strict oversight of foreclosure processing, including third-party vendors, and new requirements to undertake pre-filing reviews of certain documents filed in bankruptcy court.
The new servicing standards ensure that foreclosure is a last resort by requiring SunTrust to evaluate homeowners for other loss mitigation options first. In addition, SunTrust is restricted from foreclosing while the homeowner is being considered for a loan modification. The new standards also include procedures and timelines for reviewing loan modification applications and give homeowners the right to appeal denials. SunTrust will also be required to simplify the process for homeowners needing help by creating a single point of contact for borrowers seeking information about their loans and—importantly—maintaining adequate staff to handle calls.
The agreement will be filed as a consent judgment in the U.S. District Court for the District of Columbia. Compliance with the agreement will be overseen by an independent monitor, Joseph A. Smith Jr., who is also the monitor for the NMS. Smith has served as the North Carolina Commissioner of Banks since 2002, and is also the former Chairman of the Conference of State Banks Supervisors (CSBS). The monitor will oversee implementation of the servicing standards required by the agreement; impose penalties of up to $1 million per violation (or up to $5 million for certain repeat violations); and publish regular public reports that identify any quarter in which a servicer fell short of the standards imposed in the settlement.
The agreement resolves potential violations of civil law based on SunTrust’s deficient mortgage loan origination and servicing activities. The agreement does not prevent state and federal authorities from pursuing criminal enforcement actions related to this or other conduct by SunTrust, or from punishing wrongful securitization conduct that is the focus of the Residential Mortgage-Backed Securities Working Group of President Barack Obama’s Financial Fraud Enforcement Task Force. The agreement does not prevent the CFPB from pursing civil enforcement actions against SunTrust for violations of the CFPB’s new mortgage servicing rules that took effect on Jan. 10, 2014. State attorneys general also preserved, among other things, all claims against the Mortgage Electronic Registration Systems (MERS), and all claims brought by borrowers. Additionally, the agreement does not prevent any action by individual borrowers who wish to bring their own lawsuits.SunTrust is a mortgage lender and servicer headquartered in Richmond, Virginia, and is a wholly-owned subsidiary of SunTrust Banks Inc., a bank and financial services company headquartered in Atlanta, Georgia.
The settlement announced today was the result of investigations conducted by the Civil Division and the U.S. Trustee Program of the Department of Justice, state attorney general offices throughout the country, HUD-OIG and HUD’s FHA, and the CFPB. The Department of the Treasury, the Federal Trade Commission, the Federal Deposit Insurance Corporation, the Department of Veterans Affairs and the U.S. Department of Agriculture also made critical contributions.
The joint federal-state agreement is part of enforcement efforts 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.gov.Attorney General Holder Delivers Statement on the Arrest of Ahmed Abu Khatallah for His Role in Attack in Benghazi, LibyaRead the Press Release
WASHINGTON—Attorney General Eric Holder released the following statement Tuesday regarding the arrest of Ahmed Abu Khatallah for his role in the attack on the U.S. facilities in Benghazi, Libya:
“Our nation’s memory is long and our reach is far. The arrest of Ahmed Abu Khatallah represents a significant milestone in our efforts to ensure justice is served for the heinous and cowardly attack on our facilities in Benghazi. Since that attack – which caused the deaths of Ambassador Christopher Stevens, Sean Smith, Tyrone Woods, and Glen Doherty – we have conducted a thorough, unrelenting investigation, across continents, to find the perpetrators. The arrest of Khatallah proves that the U.S. government will expend any effort necessary to pursue terrorists who harm our citizens. Khatallah currently faces criminal charges on three counts, and we retain the option of adding additional charges in the coming days. Even as we begin the process of putting Khatallah on trial and seeking his conviction before a jury, our investigation will remain ongoing as we work to identify and arrest any co-conspirators. This is our pledge; we owe the victims of the Benghazi attack and their loved ones nothing less.”
Alabama Tax Return Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
Russell Burroughs pleaded guilty today to aiding in the preparation of false tax returns in U.S. District Court for the Middle District of Alabama, the Justice Department and Internal Revenue Service (IRS) announced.
According to court documents, during the 2008 through 2010 tax seasons, Burroughs owned and operated Computer Services, a tax return preparation business located in Montgomery, Alabama. Burroughs admitted he falsified information for his clients on their tax returns in order to illegally generate higher tax refunds. He acknowledged that he intentionally included false items such as false business income or loss, false deductions, false real estate rental losses, false education credits and false energy credits in order to inflate his clients’ refunds.
As part of his plea, Burroughs agreed to pay restitution to the United States in the amount of $211,960 and to be to be permanently enjoined from preparing or filing federal tax returns for others in the future.
As a result of his plea, Burroughs faces a maximum sentence of three years in prison, a $250,000 fine and one year of supervised release.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Katherine Reinhart, Charles M. Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division are prosecuting the case.
Wyoming Man Pleads Guilty to Tax FraudRead the Press Release
Sonny Pilcher of Casper, Wyoming, pleaded guilty to tax fraud today in the U.S. District Court for the District of Wyoming, the Justice Department and Internal Revenue Service (IRS) announced. The sentencing hearing was set for Oct. 28, 2014 before U.S District Judge Alan B. Johnson.
According to the charging document, Pilcher attempted to obstruct and impede the IRS. Pilcher did this by claiming a false bad debt expense of $258,000 on his 2008 Form 1040 tax return, and by paying his employees in cash to evade paying employment taxes. Pilcher faces a statutory maximum sentence of 36 months in prison, a $250,000 fine and may be ordered to pay restitution to the IRS.
This case is being prosecuted by Trial Attorneys Lori A. Hendrickson and Ignacio Perez de la Cruz of the Justice Department’s Tax Division and was investigated by IRS – Criminal Investigation Special Agents in the Cheyenne, Wyoming, field office.
Georgia Resident Pleads Guilty in Connection with International Lottery Scheme Based in JamaicaRead the Press Release
A man from Atlanta, Georgia, pleaded guilty today for his role in a Jamaican-based fraudulent lottery scheme.
Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division, Inspector in Charge David W. Bosch of the Postal Inspection Service Philadelphia Division and Acting Special Agent in Charge Jonathan Larson of the Internal Revenue Service-Criminal Investigations Newark Field Office made the announcement.
Dominic Smith, 26, a citizen of the United States, pleaded guilty in the Western District of North Carolina to one count of conspiracy to commit wire fraud. Sentencing will be scheduled at a later date.
Smith was charged in connection with a fraudulent lottery scheme based in Jamaica that induced elderly victims in the U.S. to send Smith thousands of dollars to cover purported fees for lottery winnings that victims had not won and never received. Smith acted as a middleman in the U.S., receiving money from victims via wire transfers, bank transfers, and mailings. Smith kept a portion of this victim money for his own benefit, and provided the rest to others participating in the scheme.
“This guilty plea demonstrates the Justice Department’s commitment to prosecute those responsible for fraudulent lottery schemes,” said Assistant Attorney General Delery. “Schemes targeting Americans from other countries often cannot fully succeed without assistance from co-conspirators in the U.S. who are willing to help them rip off people in this country.”
“These lottery scammers prey on older Americans, and convince them to send significant amounts of money based on false promises,” said Postal Inspector in Charge Bosch. “The Postal Inspection Service is committed to investigating and combating these international lottery schemes.”
“These fraudulent lottery schemes result in hundreds of thousands of dollars of victim money flowing through the hands of scammers within and outside of the U.S.,” said Acting Special Agent in Charge Larsen. “The IRS will continue to work with the Department of Justice and our law enforcement partners to stop the flow of illegal proceeds across the U.S. border.”
This prosecution is part of the Department of Justice’s effort working with federal and local law enforcement to combat fraudulent lottery schemes in Jamaica preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
Smith pleaded guilty to one count of conspiracy to commit wire fraud with enhanced penalties for telemarketing. As part of his guilty plea, Smith acknowledged that, had the case gone to trial, the U.S. would have proved beyond a reasonable doubt that, from December 2010 through at least April 2012, Smith was a member of a conspiracy that targeted victims in the United States by informing them that they had won cash and prizes in a lottery. Victims received a telephone call stating that they had won a sweepstakes or lottery and sometimes a new car. Victims were instructed to send thousands of dollars for “fees” or other expenses via wire transfers, direct bank transfers, and the mail in order to release their purported lottery winnings. Victims sent hundreds of thousands of dollars to Smith in the U.S. Smith acknowledged that the government would have proved that he knew there was no lottery and no winnings were paid, and that he, along with his coconspirators, kept the victims’ money for their own benefit.
Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service and the U.S. Internal Revenue Service. The case is being prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Lauren Fascett of the Civil Division and Assistant U.S. Attorney Mark Odulio of the Western District of North Carolina.Federal Inmate Convicted of MurderRead the Press Release
Federal inmate Kevin Marquette Bellinger, a former resident of Washington, D.C., and an inmate at the United States Penitentiary in Hazelton, West Virginia, was convicted this week for the murder of another inmate after a 5-day federal jury trial before U.S. District Judge Irene M. Keeley of the Northern District of West Virginia.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and United States Attorney William J. Ihlenfeld, II, for the Northern District of West Virginia made the announcement.
Bellinger was convicted by a federal jury on June 16, 2014, on one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of inmate Jesse Harris.
According to evidence presented at trial, during a move of inmates from the recreation yard back to their cells, Bellinger and a co-defendant left the yard ahead of the others and traveled to an intersection of two corridors in the prison facility, where they confronted Harris and stabbed him with shanks in an orchestrated attack. In less than a minute, an officer approached, and the attackers fled. Officers apprehended Bellinger after a short pursuit, but they did not recover his weapon. Surveillance footage of the attack showed Bellinger and his co-defendant engaged in a verbal exchange with Harris, followed by the two attackers wielding weapons and physically assaulting Harris, who was unarmed and backing away from them.
At the time of the murder, Bellinger was serving a life sentence for an assault with intent to kill that took place in 2000, and his co-defendant was serving a life sentence for two separate homicides that took place in 1997 and 2000.
Bellinger, who is in custody pending sentencing, faces a mandatory penalty of life in prison for his conviction of murder by a federal prisoner serving a life sentence and a term of years up to life imprisonment for his conviction of second degree murder.
This case was investigated by the FBI and the U.S. Bureau of Prisons. The case was prosecuted by Trial Attorney Richard Burns from the Capital Case Section of the Justice Department’s Criminal Division and Assistant U.S. Attorney Brandon Flower.Court Bars Miami Tax Return Preparers from Preparing Returns for OthersRead the Press Release
A federal district judge in the U.S. District Court for the Southern District of Florida permanently barred Lazaro Jesus Toyos and his daughter Dilma Carida Garcia, aka Dilma Toyos Garcia, and their respective companies, L. Toyos Tax Service Inc. and Toyos Garcia Tax Service Inc., from preparing federal income tax returns for others, the Justice Department announced today.
The suit alleges that the defendants prepared thousands of tax returns and unlawfully understated income tax liabilities and overstated refunds by fabricating and/or exaggerating deductions and tax credits their clients were not eligible to take. The defendants’ practices, as alleged, include fabricating Schedule C losses for non-existent businesses, falsely claiming the First Time Homebuyer Credit for taxpayers who did not actually purchase a home and falsely claiming American Opportunity Credits for taxpayers who did not acquire education expenses or attend college. The government alleged that loss to the U.S. Treasury from the defendants’ activities may be in the millions of dollars.
In the past decade, the Justice 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 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. Lazaro Jesus Toyos, et al.
Permanent Injunction Against Defendant Lazaro Jesus Toyos and Defendant L. Toyos Tax Services, Inc., Submitted By Stipulation and Consent
Permanent Injunction Against Defendant Dilma Carida Garcia, AKA Dilma Toyos Garcia, and Defendant Toyos Garica Tax Service, Inc., Submitted By Stipulation and ConsentStatement by Attorney General Holder on the Passing of Ruby DeeRead the Press Release
WASHINGTON, DC – U.S. Attorney General Eric Holder released the following statement Friday on the passing of actress Ruby Dee:
“I was deeply saddened to learn of the passing of Ruby Dee – a legendary actress and a lifelong champion for civil rights and social justice.
“Rising from humble origins to the heights of stardom, Ruby Dee broke down barriers and left her mark from Harlem, to Broadway, to Hollywood and far beyond. She was also an extraordinary role model for generations of Americans – and particularly for African-American women and girls – during a time when black stars were rare on both stage and screen.
“Tellingly, she was never content merely to advance her own remarkable career, lending her voice and her considerable fame to causes from the American Civil Rights Movement to the global campaign against Apartheid. She stood with Dr. King and other leaders at the 1963 March on Washington, and later spoke at his funeral. She won extensive recognition for her achievements on stage, on the radio, in film, and on television. And she never slowed down or let up, delivering powerful performances and speaking out against injustice – often alongside her late husband, the great Ossie Davis – over the course of a career spanning more than six decades.
“I will always remember Ruby Dee was a wonderful entertainer, a truly great actress, a fierce activist, and an indispensable leader in the fight for civil rights. She left an indelible impression on me when, as a young man, I saw her unforgettable performance in A Raisin in the Sun. Today, I join millions of Americans in expressing my heartfelt condolences, and deepest sympathies, to her family and friends. Her work, her example, and her memory will endure. But she will be dearly missed.”
Houston Ambulance Operator Sentenced for Her Role in $2.4 Million Health Care Fraud SchemeRead the Press Release
The owner and operator of a Houston area ambulance company was sentenced today to serve 97 months in prison for her role in a $2.4 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Carlos J. Barron of the FBI’s Houston Field Office, Special Agent in Charge Mike Fields of the Dallas Regional Office of HHS’s Office of Inspector General (HHS-OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Gwendolyn Climmons-Johnson, 54, was convicted by a federal jury in Houston, Texas, on Oct. 30, 2013, of one count of conspiracy to commit health care fraud and four counts of health care fraud. In addition to the prison sentence, Climmons-Johnson was also sentenced to serve three years of supervised release and ordered to pay $972,132 in restitution.
According to evidence presented at trial, Climmons-Johnson was the owner and operator of Urgent Response EMS, a Texas-based entity that purportedly provided non-emergency ambulance services to Medicare beneficiaries in the Houston area. The evidence showed that from January 2010 through December 2011, Climmons-Johnson and others conspired to enrich themselves by submitting false and fraudulent claims to Medicare for ambulance services that were medically unnecessary and/or not provided. Climmons-Johnson, who controlled the day-to-day operations of Urgent Response, submitted, and caused to be submitted, approximately $2.4 million in fraudulent ambulance service claims to Medicare.
At trial, the evidence showed that patient records had been falsified and the Medicare beneficiaries for whom Climmons-Johnson had billed ambulance services did not need ambulance services and were not in the condition stated in the records.
The case was investigated by the FBI, HHS-OIG and Texas MFCU and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case was prosecuted by Trial Attorney Christopher Cestaro and Assistant Chief Laura M.K. Cordova of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Tribunal Federal de Distrito Cierran Empresa de Preparadores de Declaraciones de Impuestos de CaliforniaRead the Press Release
WASHINGTON -- Un tribunal federal EN Fresno, California ha prohibido en forma permanente a Ken Mendoza y Alice Mendoza preparar declaraciones de impuestos federales para terceros, anunció hoy el Departamento de Justicia. Ken Mendoza y Alice Mendoza, quienes funcionaban bajo el nombre comercial "Mendoza Business Services" en Fresno, consitieron a la orden de interdicto civil firmada por el Juez Federal de Distrito J. O'Neill en el Tribunal Federal de Distrito para el Distrito Este de California.
De acuerdo con la demanda, los Mendoza declaran indebidamente las obligaciones de impuestos federales de sus clientes al inventar gastos, pedir créditos falsos o exagerados, especialmente créditos educativos, y deducir gastos personales de sus clientes. En total, la demanda alega que la pérdida para el Tesoro de EE.UU. debido a las actividades de los Mendoza podría ser de hasta 2.8 millones de dóalres para los años fiscales 2010 a 2011. La demanda también alega que muchos de los clientes de los Mendoza podrían deber impuestos adicionales, intereses y multas debido a declaraciones preparadas indebidamente.
Además de prohibir a los Mendoza la preparación o presentación de declaraciones de impuestos federales para terceros, el tribunal también prohibió la preparación o presentación de declaraciones de impuestos federales a cualquiera que actúe en conjunto con los Mendoza, y prohibió a los Mendoza de solicitar o encauzar la preparación de declaraciones de impuestos federales para terceros. El tribunal exigió que los Mendoza se comunicaran con todas las personas para las que prepararon una declaración de impuestos federales desde el 1° de enero de 2008, para informar a dichas personas del interdicto permanente contra ellos.
El fraude de preparación de declaraciones de impuestos es uno de los ardides de la Docena sucia de ardides tributarios de 2013 del Servicio de Impuestos Internos [Internal Revenue Service (IRS)]. El IRS tiene algunos consejos en su portal en Internet para la elección de un preparador de impuestos. En la última década, la División de Impuestos ha obtenido interdictos contra cientos de preparadores de impuestos inescrupulosos. Se puede encontrar información sobre estos casos en el portal del Departamento de Justicia. Se encuentra una lista alfabética de personas prohibidas de preparar declaraciones de impuestos y promover ardides tributarios en esta página. Si usted cree que una de las personas o empresas bajo prohibición puede estar violando un interdicto, por favor comuníquese con la División de Impuestos para proveer detalles.
Romanian National “Guccifer” Charged with Hacking into Personal Email AccountsRead the Press Release
Marcel Lehel Lazar, 42, of Arad, Romania, also known as the hacker “Guccifer,” was indicted by a federal grand jury today on charges of wire fraud, unauthorized access to a protected computer, aggravated identity theft, cyberstalking and obstruction of justice.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge Edward Lowery of the United States Secret Service Criminal Investigative Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Principal Deputy Assistant Secretary Bill A. Miller of the U.S. Department of State Bureau of Diplomatic Security made the announcement .
According to the indictment, from December 2012 to January 2014, Lazar hacked into the email and social media accounts of high-profile victims, including a family member of two former U.S. presidents, a former U.S. Cabinet member, a former member of the U.S. Joint Chiefs of Staff and a former presidential advisor. After gaining unauthorized access to their email and social media accounts, Lazar publicly released his victims’ private email correspondence, medical and financial information, and personal photographs. The indictment also alleges that in July and August 2013, Lazar impersonated a victim after compromising the victim’s account.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by United States Secret Service, the FBI’s Washington Field Office and the U.S. Department of State Bureau of Diplomatic Security, with assistance from the Romanian National Police . The case is being prosecuted by Trial Attorney Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Ryan K. Dickey of the Eastern District of Virginia. The Criminal Division’s Office of International Affairs provided assistance.Justice Department Settles Immigration-Related Discrimination Claim Against Commercial Cleaning SystemsRead the Press Release
The Justice Department reached an agreement today with Commercial Cleaning Systems, a janitorial services company with headquarters in Denver. The agreement resolves claims that the company discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).
The department’s investigation was initiated based on a referral from U.S. Citizenship and Immigration Services. The investigation found that Commercial Cleaning Systems required work-authorized non-U.S. citizens to present specific documentation issued by the U.S. Department of Homeland Security in order to verify their employment eligibility, while U.S. citizens were permitted to present their choice of documentation. The INA’s anti-discrimination provision prohibits employers from placing additional documentary burdens on work-authorized employees during the hiring and employment eligibility verification process based on their citizenship status or national origin.
Under the settlement agreement, Commercial Cleaning Systems will pay $53,500 in civil penalties, create a $25,000 back pay fund to compensate individuals who may have lost wages as a result of the company’s discriminatory document practices, and be subject to monitoring of its employment eligibility verification practices for one year.
“Discriminating against work-authorized employees because they are not citizens violates federal law and the Justice Department is committed to enforcing this law,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “We applaud Commercial Cleaning Systems 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 also prohibits, among other things, citizenship status and national origin discrimination in hiring, firing and recruitment or referral for a fee. The case was handled by OSC Trial Attorney Linda White Andrews.
For more information about protections against employment discrimination under immigration laws or how to sign up for a free webinar, 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) or visit the OSC website at www.justice.gov/crt/about/osc .
Applicants or employees who believe they were subjected to different documentary requirements or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral for a fee should contact the worker hotline above for assistance.
Joint Law Enforcement Effort Leads to Issuance of First Ever Interpol Purple Notice from the United StatesRead the Press Release
WASHINGTON - A joint investigation between the National Oceanic and Atmospheric Administration (NOAA), the United States Coast Guard (USCG), and Interpol Washington (U.S. National Central Bureau) has led to the publication of the first-ever Interpol Purple Notice issued by the United States for a vessel believed to be engaged in illegal fishing activities.
According to the Purple Notice, the fishing vessel named 'Stellar' was sighted twice in May 2014 operating on the high seas of the North Pacific Ocean by the USCG. It appears to change its name, national registration and other identifying characteristics in order to hide illegal activity. 'Stellar' is suspected of engaging in illicit fisheries transshipment activities near the Russian Exclusive Economic Zone.
'Stellar' was last known to have arrived in the port of Busan, Korea on June 3, 2014. The USCG provided information to the Korean authorities regarding the suspicious activities of 'Stellar' and recommended the vessel be inspected for potential violations.
“Illegal fisheries activity has a wide-ranging impact on the health and sustainability of the oceans fish stocks,” said Bruce Buckson, Director of NOAA's Office of Law Enforcement. “We're pleased to be working with Interpol, its member agencies, and the U.S. Coast Guard to combat this type of activity. We expect this international effort will help level the playing field for U.S. domestic fishers.”
“I commend NOAA, the USCG and Interpol Washington's Economic Crimes Division representatives for their extraordinary efforts, collaboration and partnership during this investigation which has resulted in the first Interpol Purple Notice issued by U.S. law enforcement authorities,” stated Interpol Washington Director Shawn A. Bray.
The United States wishes to make all 189 other Interpol member countries aware of the suspected illegal operations of the fishing vessel 'Stellar' (also known as 'Sungari'). By raising awareness of this vessel's operations, member countries will be able to investigate possible violations of their laws and take appropriate enforcement measures should the vessel attempt to operate illegally in their waters or ports, or under their national jurisdiction.
Former Ku Klux Klan Officer Pleads Guilty to Committing Perjury During Investigation into Cross-BurningRead the Press Release
Pamela Morris, former secretary of a chapter of the Ku Klux Klan (KKK) in Ozark, Alabama, pleaded guilty today to committing perjury during a grand jury’s investigation into a racially motivated cross-burning in the U.S. District Court for the Middle District of Alabama.
Morris, 46, admitted in plea documents that on Feb. 20, 2013, she lied to a federal grand jury looking into a cross-burning committed by Steven Joshua Dinkle, Morris’s son and the leader of the local KKK, and Thomas Smith, another KKK member. On May 8, 2009, Dinkle and Smith burned a six-foot tall cross at the entrance to an African-American neighborhood in Ozark to threaten and intimidate residents. In sworn testimony before the grand jury, Morris made several false statements, including denying that she had been the secretary of the chapter or involved with the KKK at all.
In pleading guilty, Morris admitted that she had been an officer of the KKK and that her testimony denying any connection to the organization was false. She further acknowledged that she knew Dinkle had committed the cross-burning. In addition, Morris admitted that she testified falsely to prevent the grand jury from learning about other KKK members who had information relevant to the investigation.
A sentencing date has not yet been scheduled. Morris faces a statutory maximum sentence of five years in prison and a $250,000 fine.
Dinkle pleaded guilty on Feb. 3, 2014, to hate crime and obstruction of justice charges related to the cross-burning. On May 15, 2014, he was sentenced to serve 24 months in prison. Smith, Dinkle’s co-conspirator, pleaded guilty to conspiracy to interfere with housing rights on Dec. 6, 2013. He is scheduled to be sentenced on Aug. 19, 2014.
“Defendant Morris lied under oath blatantly and repeatedly to hinder an investigation into a cross-burning that was committed to intimidate an entire community,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The department will continue to hold accountable not only those who commit such acts of violence, but also those who lie and obstruct the investigation into these crimes of intimidation.”
“Ms. Morris lied to the grand jury in an attempt to protect herself and to protect a cross burner,” said U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. “When someone testifies in court they swear to tell the truth. Unfortunately, Ms. Morris lied. For our system of justice to protect the rights of all, those who testify before the grand jury must provide accurate and honest information. If someone fails to tell the truth while under oath, we will prosecute them.”
This case is being investigated by the FBI with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Civil Rights Division.
Federal District Court Shut Down California Tax Return PreparersRead the Press Release
A federal court in Fresno, California, has permanently barred Ken Mendoza and Alice Mendoza from preparing federal tax returns for others, the Justice Department announced today. Ken Mendoza and Alice Mendoza, who operated under the business name “Mendoza Business Services” in Fresno, consented to the civil injunction order, which was signed by U.S. District Judge Lawrence J. O’Neill in the U.S. District Court for the Eastern District of California.
According to the complaint, the Mendozas improperly understate their customers’ federal tax liabilities by fabricating expenses, claiming false or inflated credits, particularly educational credits, and deducting personal expenses of their customers. In total, the complaint alleges that the loss to the U.S. Treasury from the Mendozas’ activities could be as much as $2.8 million for tax years 2010 through 2011. The complaint also alleges that many of the Mendozas’ customers may owe additional tax, interest and penalties because of the improperly prepared returns.
In addition to barring the Mendozas from preparing or filing federal tax returns for others, the court also enjoined anyone acting in concert with the Mendozas from preparing or filing federal tax returns, and prohibited the Mendozas from requesting or directing the preparation of federal tax returns for others. The court required the Mendozas to contact all persons for whom they prepared a federal tax return since Jan. 1, 2008, to inform all such persons of the permanent injunction entered against them.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
El Departamento de Justicia Llega a un Acuerdo sobre una Queja de Discriminación Relacionada con Inmigración Contra Commercial Cleaning SystemsRead the Press Release
WASHINGTON - El Departamento de Justicia llegó a un acuerdo hoy con Commercial Cleaning Systems, una empresa de servicios de limpieza con sede en Denver. El acuerdo resuelve los reclamos de que la empresa discriminó en contra de empleados que están autorizados a trabajar en los Estados Unidos pero que no son ciudadanos estadounidenses, en violación de la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del departamento se inició basada en una remisión del Servicio de Ciudadanía e Inmigración de los Estados Unidos. La investigación encontró que Commercial Cleaning Systems requirió que empleados que no son ciudadanos estadounidenses, pero que cuentan con autorización de trabajo, presentaran documentos específicos emitidos por el Departamento de Seguridad Nacional para probar su elegibilidad de empleo, mientras que a los ciudadanos estadounidenses se les permitía presentar los documentos de su preferencia. 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 por causa de su ciudadanía u origen nacional.
Conforme al acuerdo de resolución, Commercial Cleaning Systems pagará $53,500 en sanciones civiles a los Estados Unidos y establecerá un fondo de $25,000 con propósito de compensar a los individuos quienes hayan perdido salario como resultado de las prácticas discriminatorias documentales de la compañía. Además, la compañía estará sujeta a un período de monitoreo de un año de sus prácticas de verificación de elegibilidad de empleo.
"Discriminar en contra de empleados autorizados a trabajar por no ser ciudadanos viola la ley federal y el Departamento de Justicia está comprometido a hacer cumplir con esta ley," dijo la Sub-Procuradora Interina de la División de Derechos Civiles, Jocelyn Samuels. "Aplaudimos a Commercial Cleaning Systems por trabajar cooperativamente con la división para resolver este asunto."
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con Inmigración (OSC por sus siglas en inglés) es responsable de exigir el cumplimiento de la provisión anti-discriminación de la INA. La ley también prohíbe, entre otras cosas, la discriminación por causa del estado de ciudadanía y origen nacional en la contratación, despido y reclutamiento o referencia por comisión. El caso fue manejado por la abogada Linda White Andrews.
Para más información sobre las protecciones contra la discriminación en el empleo conforme a las leyes de inmigración o para registrarse en un seminario de internet gratis, llame a la línea directa para trabajadores de la OSC al 1-800-255-7688 (1-800-237-2515, TTY para las personas con dificultades auditivos, llame a la línea directa para empleadores de la OSC al 1-800-255-8155 (1-800-237-2515, TTY) para las personas con dificultades auditivos, o visite el sitio web en www.justice.gov/crt/about/osc.
Los solicitantes o trabajadores que creen que han sido sometidos a requisitos documentales distintos o discriminación por causa de su ciudadanía, estatus de inmigración u origen nacional, en la contratación, despido, o reclutamiento o referencia por comisión, deben comunicarse con la línea directa para trabajadores indicada arriba para recibir ayuda.
Milwaukee Man Pleads Guilty to Sex Trafficking OffensesRead the Press Release
Najee C. Moore, 23, of Milwaukee, pleaded guilty today to five counts of conspiracy to engage in sex trafficking and one count of use of a facility in interstate commerce in aid of racketeering in the U.S. District Court for the Eastern District of Wisconsin.
According to documents filed in court, from 2007 through 2013, Moore engaged in multiple conspiracies knowing or in reckless disregard of the fact that means of force, fraud or coercion would be used to cause both minor and adult victims to engage in commercial sex acts in Milwaukee and elsewhere. Moore also used an internet website to promote his illegal enterprise.
“Bringing human traffickers to justice is a top priority of the Department of Justice,” said Acting Assistant Attorney General Jocelyn Samuels for the department’s Civil Rights Division. “The Civil Rights Division is committed to the vigorous prosecution of those who prey upon, abuse, and exploit others for their own financial benefit.”
“Here in Eastern Wisconsin and throughout the nation, our focused and effective teams of investigators and prosecutors—federal, state, local and tribal—continue to identify, pursue and bring to justice those people who engage in this type of invidious criminal conduct,” said U.S. Attorney James L. Santelle for the Eastern District of Wisconsin. “Today’s plea reflects that unyielding commitment to address commercial sex trafficking in a manner that assists and supports the vulnerable victims of it and that responds to the legitimate community outrage over this destructive conduct.”
“Child prostitution remains a persistent threat to children in Wisconsin and across America,” said FBI Special Agent in Charge of the Milwaukee Field Office Robert J. Shields. “This investigation serves as a reminder that the predators that commit these crimes can reside anywhere. The FBI and its law enforcement partners remain committed to pursuing and stopping these subjects where ever they operate."
“This case is another example of how successful law enforcement can be when resources are combined to focus on those who engage in criminal behavior,” said Wisconsin Department of Justice – Division of Criminal Investigation (DCI) Administrator David Matthews. “Having received a tip, law enforcement at the state, local and federal levels – as part of the Human Trafficking Task Force – worked this case jointly to share information and support investigative efforts, all of which resulted in the arrest and successful prosecution of Najee Moore. I thank all of those involved for their contributions toward bringing justice in this case.”
“I’m proud of the work of the human trafficking investigators assigned to our Sensitive Crimes Division,” said Milwaukee Police Chief Edward Flynn. “Their partnered efforts with federal officials continues to result in the successful apprehension and prosecution of dangerous sexual predators.”
This prosecution is the result of the joint investigation by the Human Trafficking Task Force for the Eastern District of Wisconsin and was the work of cooperative efforts between enforcement agencies including the FBI, Milwaukee Police Department, Wisconsin Department of Justice - DCI, Homeland Security Investigations the U.S. Attorney’s Office for the Eastern District of Wisconsin and the Civil Rights Division.
The case is being prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman of the U.S. Attorney’s Office for the Eastern District of Wisconsin and Trial Attorney Daniel H. Weiss of the Civil Rights Division.
Advisory Committee on American Indian and Alaska Native Children Exposed to Violence Holds Final Public HearingRead the Press Release
The Advisory Committee of the Attorney General’s Task Force on American Indian and Alaska Native Children Exposed to Violence convenes its final public hearing in Anchorage, Alaska, today and tomorrow. The hearing will examine the wide-ranging impact of violence on children in Alaska Native communities and consider programs to effectively support these children and promote healing.
"I am honored to be here in Alaska to have the opportunity to meet leaders and representatives of Alaska's Native villages here today," said Associate Attorney General Tony West. "Despite heroic efforts on the part of law enforcement officers and service providers, the safety and welfare of Alaska Native people are precarious at best. And the ones who are at greatest risk - and who suffer the most - are their children. At the Department of Justice, we believe we have a role in changing the present circumstances - and the future prospects - of native youth."
This public hearing will gather expert testimony from Alaska Native leaders and tribal judges through panel discussions on the prevalence of violence, recommendations in the Indian Law and Order Commission Report specific to Alaska Native youth and the impact of the court system on these youth. Additional panels will discuss specific ways Alaska Native children are affected by violence in their homes and communities and consider recommendations to improve how these children are identified, assessed and treated.
The Attorney General’s Task Force on American Indian and Alaska Native Children Exposed to Violence is composed of a federal working group that includes U.S. Attorneys and officials from the Interior and Justice Departments and a federal advisory committee of experts on American Indian studies, child health and trauma, victim services and child welfare. Former U.S. Senator Byron Dorgan and Iroquois composer and singer Joanne Shenandoah co-chair the 13-member committee.
The advisory committee will draw upon research and information gathered through this hearing and three previous public hearings to draft a final report of policy recommendations to present to Attorney General Eric Holder by late 2014. Previous hearings addressed domestic and community violence in Indian Country; the pathway from victimization to the juvenile justice system; the roles of juvenile courts, detention facilities and the child welfare system; gang violence; and child sex trafficking. The first public hearing was held Dec. 9, 2013, in Bismarck, North Dakota, the second Feb. 11, 2014, in the Salt River Pima-Maricopa Indian Community in Scottsdale, Arizona, and the third April 16-17, 2014, in Fort Lauderdale, Florida.
Attorney General Holder created the task force in 2013 as part of his Defending Childhood initiative to prevent and reduce children’s exposure to violence as victims and witnesses. The task force is also a component of the Justice Department’s ongoing collaboration with leaders in American Indian and Alaska Native communities to improve public safety. For more information about the advisory committee and public hearings, please visit www.justice.gov/defendingchildhood .
Virginia Businessman Pleads Guilty to Employment Tax Fraud and Theft from Employee Benefit PlanRead the Press Release
William P. Danielczyk Jr., formerly of Oakton, Virginia, pleaded guilty to one count of willful failure to collect and pay over employment taxes for the quarter ending Sept. 30, 2010, and one count of theft or embezzlement from an employee benefit plan for the calendar year 2010, the Department of Justice and Internal Revenue Service (IRS) announced today.
According to court documents, from March 2009 until December 2011, Danielczyk was the executive chairman of Innolog Holdings Corporation, a company that acquired Innovative Logistics Technology Inc. in March 2009. Innovative operated in the government services industry and provided technology-supported logistics services to the U.S. military and various defense organizations. The principal offices for Innovative and Innolog were located in McLean, Virginia, and later in Fairfax, Virginia.
For the third calendar quarter of 2009 through the last calendar quarter of 2011, Danielczyk was the person responsible for collecting, accounting for and paying appropriate payroll tax amounts to the IRS. Although payroll taxes were withheld from the wages of Innovative’s employees, Danielczyk failed to pay both the employee withholdings amounts and the employer’s matching portions to the IRS. The total tax loss for all quarters is $2,232,781.
According to court documents, Innovative employees were permitted to contribute to a qualified pension plan that was administered by an asset custodian, and pursuant to this plan, Innovative withheld participants’ elected contribution amounts from their regular paychecks. The total sum of employee withholdings was to be sent to the asset custodian on a bi-weekly basis. Although Danielczyk was the person responsible for authorizing payments to the asset custodian, he failed to send these payments. The total loss amount associated with this conduct, for 2009 through 2011, is $186,263.
Instead of paying Innovative’s employment taxes and remitting employee withholdings to the asset custodian of the company’s qualified pension plan, Danielczyk made purchases that included $505,871 for the use of a Washington, D.C., football stadium executive suite and $40,000 for the sponsorship of a horse race in Virginia.
Sentencing in this case has been set forSept. 11, 2014. For the employment tax charge, Danielczyk faces a statutory maximum sentence of five years in prison and a maximum fine of $250,000. Danielczyk faces a statutory maximum sentence of five years in prison and a fine of $250,000 for the theft from employee benefit plan charge.
The case was investigated by IRS-Criminal Investigation and the U.S. Department of Labor, Employee Benefits Security Administration, Philadelphia Regional Office. Trial Attorney Tracy L. Gostyla of the Tax Division and Assistant U.S. Attorney Mark D. Lytle for the Eastern District of Virginia are prosecuting the case.
Two Charged with Leading a Conspiracy to Defraud and Extort Spanish-Speaking Consumers Through Fraudulent Call CentersRead the Press Release
A grand jury in Miami, Florida, indicted two individuals and two corporations for allegedly operating call centers in Peru that lied to and threatened Spanish-speaking victims into paying fraudulent settlements.
Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division, U.S. Attorney Wilfredo A. Ferrer of the Southern District of Florida and U.S. Postal Inspector in Charge Ronald Verrochio of the Miami Office made the announcement.
Maria Luzula, of Miami and Juan Alejandro Rodriguez Cuya, of Lima, Peru, were charged with conspiracy, mail and wire fraud and extortion. Two Miami-based corporate entities – Angeluz Florida Corporation and Angeluz Miami, LLC – were charged with the same offenses.
“The Department of Justice is committed to fighting consumer fraud,” said Assistant Attorney General Delery. “Threats, misrepresentations and other predatory tactics used to rip off consumers will not be tolerated.”
“Consumer fraud that targets a specific population is shameful,” said U.S. Attorney Ferrer. “In this case, the defendants are alleged to have targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation, forfeiture of property or harm to their credit scores when the consumers refused to settle claims for products that were not delivered or ordered. Such tactics are intolerable. The U.S. Attorney’s Office is committed and stands united with the Department of Justice’s Civil Division, Consumer Protection Branch, to protect our consumers from fraud.”
“The U.S. Postal Inspection Service will continue to aggressively investigate and pursue those who threaten our citizens and defraud them of their hard earned money, no matter what country they are operating from,” said U.S. Postal Inspector in Charge Verrochio.
According to allegations in the indictment, the defendants’ employees in Peru, using Internet-based telephone calls, lied to Spanish-speaking victims in the U.S. about fines they owed and lawsuits that would be brought against the victims. Peruvian callers threatened the victims and falsely told each victim that he or she had wrongfully failed to receive a delivery of products. The callers went on to claim, again falsely, that the victims owed thousands of dollars in fines. In reality, the victims had never ordered these products and no attempts to deliver products to the victims had been made.
The indictment alleges that Luzula’s and Rodriguez Cuya’s employees claimed that the consumers could resolve the fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to arrest, deportation, forfeiture of property or harm to their credit scores. Although consumers typically objected that they did not order or refuse delivery of any products, thousands still agreed to pay the fees due to these threats. The indictment alleges that a phone room in Miami collected the fees.
Luzula and Rodriguez Cuya originally were charged by criminal complaint and arrested on Jan. 10, 2013. They have remained incarcerated since their arrests.
The charges in the indictment are only allegations, and the defendants are presumed innocent unless and until proven guilty.
Assistant Attorney General Delery commended the Postal Inspection Service for their investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the case. The case is being prosecuted by Trial Attorney Phil Toomajian and Assistant Director Richard Goldberg with the Department of Justice’s Civil Division, Consumer Protection Branch.Justice Department Urges U.S. Sentencing Commission to Make Certain Individuals Incarcerated for Drug Offenses Retroactively Eligible for Reduced SentencesRead the Press Release
WASHINGTON—Attorney General Eric Holder announced Tuesday that the Justice Department would formally support a proposal under consideration by the U.S. Sentencing Commission to allow certain individuals serving time in federal prison for nonviolent drug offenses to be eligible for reduced sentences.
The Commission—which sets the guidelines for sentences imposed on federal criminal defendants—approved a proposal in April to lower, by two levels, the base offense associated with various drug quantities involved in drug trafficking crimes. Next month, the Commission will vote on whether the change, which is estimated to reduce the average sentence by 23 months, should be applied retroactively to individuals who are already in prison.
The department is proposing that the Commission make the revised guidelines retroactive for individuals who lack significant criminal histories and whose offenses did not include aggravating factors, such as the possession of a dangerous weapon or the use of violence. This approach is consistent with the department’s overall criminal justice reform efforts, which seek to reserve the harshest penalties for the most serious criminals who pose the greatest threat to public safety.
“Under the department’s proposal, if your offense was nonviolent, did not involve a weapon, and you do not have a significant criminal history, then you would be eligible to apply for a reduced sentence in accordance with the new rules approved by the Commission in April,” Holder said. “Not everyone in prison for a drug-related offense would be eligible. Nor would everyone who is eligible be guaranteed a reduced sentence. But this proposal strikes the best balance between protecting public safety and addressing the overcrowding of our prison system that has been exacerbated by unnecessarily long sentences.”The department’s position in favor of applying the revised guidelines retrospectively in some cases was conveyed Tuesday during a formal hearing of the Commission. Sally Yates, the U.S. Attorney for the Northern District of Georgia, and Bureau of Prisons Director Charles Samuels testified on behalf of the department.
“We believe that the federal drug sentencing structure in place before the amendment resulted in unnecessarily long sentences for some offenders that has resulted in significant prison overcrowding, and that imprisonment terms for those sentenced pursuant to the old guideline should be moderated to the extent possible consistent with other policy considerations,” Yates said. Under the plan supported by the department, Yates added, “retroactivity would be available to a class of non-violent offenders who have limited criminal history and did not possess or use a weapon, and thus will apply only to the category of drug offender who warrants a less severe sentence and who also poses the least risk of reoffending.”
The department’s proposal calls for retroactivity to be applied to defendants in Criminal History Categories I and II who did not receive (1) a mandatory minimum sentence for a firearms offense pursuant to 18 U.S.C. § 924(c); (2) an enhancement for possession of a dangerous weapon pursuant to §2D1.1(b)(1); (3) an enhancement for using, threatening, or directing the use of violence pursuant to §2D1.1(b)(2); (4) an enhancement for engaging in an aggravating role in the offense pursuant to §3B1.1; or (5) an enhancement for obstruction or attempted obstruction of justice pursuant to §3C1.1. (2) an enhancement for possession of a dangerous weapon pursuant to §2D1.1(b)(1); (3) an enhancement for using, threatening, or directing the use of violence pursuant to §2D1.1(b)(2); (4) an enhancement for engaging in an aggravating role in the offense pursuant to §3B1.1; or (5) an enhancement for obstruction or attempted obstruction of justice pursuant to §3C1.1.INTERPOL President Mireille Ballestrazzi Visits with INTERPOL Washington and DHSRead the Press Release
USDOJ: INTERPOL Washington: Updates
Department of Justice INTERPOL Washington FOR IMMEDIATE RELEASE Tuesday, June 10, 2014INTERPOL President Mireille Ballestrazzi Visits with INTERPOL Washington and DHS
WASHINGTON - During the week of May 26th, INTERPOL President Mireille Ballestrazzi visited the U.S. where she conducted several meetings with high ranking U.S. law enforcement officials. One of the highlights of Mrs. Ballestrazzi's visit was her meeting with DHS Secretary Jeh Johnson that took place on Tuesday, May 27th. In attendance at their meeting was INTERPOL Vice President of the Americas Region Alan Bersin, INTERPOL Washington Director Shawn A. Bray, and members of Mr. Johnson's cabinet. They discussed ideas and opportunities for continued collaboration between INTERPOL and the U.S. Department of Homeland Security. Mrs. Ballestrazzi is the first-ever elected female to hold the position of INTERPOL President. Along with her title of INTERPOL President, she also serves as the Central Director of the French Judicial Police.
Former Rabobank Trader Pleads Guilty for Scheme to Manipulate Yen LiborRead the Press Release
A former Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) Japanese Yen derivatives trader pleaded guilty today for his role in a conspiracy to commit wire and bank fraud by manipulating Rabobank’s Yen London InterBank Offered Rate (LIBOR) submissions to benefit his trading positions.
Attorney General Eric H. Holder, 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 Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
Today, a criminal information was filed in the Southern District of New York charging Takayuki Yagami, a Japanese national, with one count of conspiracy to commit wire fraud and bank fraud. Yagami pleaded guilty to the information before United States District Judge Jed S. Rakoff in the Southern District of New York.
“With this guilty plea, we take another significant step to hold accountable those who fraudulently manipulated the world’s cornerstone benchmark interest rate for financial gain,” said Attorney General Eric Holder. “This conduct distorted transactions and financial products around the world. Manipulating LIBOR effectively rigs the global financial system, compromising the fairness of world markets. This plea demonstrates that the Justice Department will never waver, and we will never rest, in our determination to ensure the integrity of the marketplace and protect it from fraud.
“Today, a former Rabobank trader has pleaded guilty to participating in a scheme to manipulate the global benchmark interest rate LIBOR to benefit Rabobank’s trading positions,” said Assistant Attorney General Caldwell. “This was the ultimate inside job. As alleged, traders illegally influenced the very interest rate on which their trades were based, using fraud to gain an unfair advantage. Takayuki Yagami is the ninth person charged by the Justice Department in connection with the industry-wide LIBOR investigation, and we are determined to pursue other individuals and institutions who engaged in this crime.”
“Today’s guilty plea is a significant step forward in the LIBOR investigation and demonstrates the Department’s firm commitment to individual accountability,” said Deputy Assistant Attorney General Snyder. “We will continue to pursue aggressively other individuals involved in this or other illegal schemes that undermine free and fair financial markets.”
“Manipulating financial trading markets to create an unfair advantage is against the law,” said Assistant Director in Charge Parlave. “Today’s guilty plea further underscores the FBI’s ability to investigate complex international financial crimes and bring the perpetrators to justice. 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. Their efforts send a clear message to anyone contemplating financial crimes: think twice or you will face the consequences.”
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.
Yagami admitted to conspiring with Paul Robson, of the United Kingdom, Paul Thompson, of Australia, and Tetsuya Motomura, of Japan. Robson, Thompson and Motomura were charged with conspiracy to commit wire fraud and bank fraud as well as substantive counts of wire fraud in a fifteen-count indictment returned by a federal grand jury in the Southern District of New York on April 28, 2014. All four are former employees of 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 allegations in the information and indictment, the four defendants traded in derivative products that referenced Yen LIBOR. Robson worked as a senior trader at Rabobank’s Money Markets and Short Term Forwards desk in London; 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. In addition to trading derivative products that referenced Yen LIBOR, Robson also served as Rabobank’s primary submitter of Yen LIBOR to the BBA.
Robson, Thompson, Motomura and Yagami each entered into derivatives contracts containing Yen LIBOR as a price component . The 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 and others agreed to make false and fraudulent Yen LIBOR submissions for the benefit of their trading positions. According to the allegations, sometimes Robson submitted rates at a specific level requested by a co-defendant, including Yagami, and consistent with the co-defendant’s trading positions. Other times, Robson made a higher or lower Yen LIBOR submission consistent with the direction requested by a co-defendant and consistent with the co-defendant’s trading positions. On those occasions, Robson’s manipulated Yen LIBOR submissions were to the detriment of, among others, Rabobank’s counterparties to derivative contracts. Thompson, Motomura and Yagami (described in the indictment as Trader-R) made requests of Robson for Yen LIBOR submissions through electronic chats and email exchanges.
For example, according to court filings, on Sept. 21, 2007, Yagami asked Robson by email, “wehre 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!”
The indictment alleges that Robson accommodated the requests of his co-defendants. For example, on Sept. 21, 2007, after Robson allegedly received a request from Yagami for a high 1-month Yen LIBOR, Rabobank submitted a 1-month Yen LIBOR rate of 0.90, which was 7 basis points higher than the previous day and 5 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.
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.Dos Personas Fueron Acusadas de Encabezar una Conspiración para Defraudar y Extorsionar a Consumidores de Habla Hispana por Medio de Centros de Llamadas FraudulentosRead the Press Release
WASHINGTON - Un gran jurado en Miami, Florida, acusó formalmente a dos individuos y dos empresas por supuestamente operar centros de llamadas en Perú que mintieron y amenazaron a víctimas de habla hispana para que pagaran cargos de resolución fraudulentos.
El Secretario de Justicia Auxiliar Stuart F. Delery de la División Civil del Departamento de Justicia, el Fiscal federal Wilfredo A. Ferrer del Distrito Sur de Florida y el Inspector Postal de EE.UU. a Cargo Ronald Verrochio de la Oficina de Miami realizaron el anuncio.
María Luzula, de Miami, y Juan Alejandro Rodríguez Cuya, de Lima, Perú, fueron acusados de conspiración, fraude postal y telegráfico y extorsión. Dos sociedades con sede en Miami – Angeluz Florida Corporation y Angeluz Miami, LLC – fueron acusadas de los mismos delitos.
"El Departamento de Justicia se compromete a combatir el fraude contra consumidores", señaló el Secretario de Justicia Auxiliar de la División Civil del Departamento de Justicia Stuart F. Delery. "No se tolerarán las amenazas, declaraciones falsas y otras tácticas predatorias utilizadas para estafar a consumidores".
"El fraude contra el consumidor que apunta a una población específica es vergonzoso", señaló el Fiscal Federal Ferrer. "En este caso, se alega que los demandados tomaron como blanco a consumidores de habla hispana y los amenazaron falsamente con arresto, deportación, confiscación de propiedad o daño a sus puntajes de crédito cuando los consumidores se negaron a realizar un acuerdo por productos que no fueron entregados ni pedidos. Dichas tácticas son intolerables. La Fiscalía Federal se empeña en proteger a nuestros consumidores contra el fraude, unida a la Oficina de Protección al Consumidor de la División Civil del Departamento de Justicia".
"El Servicio de Inspección Postal de EE.UU. seguirá investigando y persiguiendo enérgicamente a quienes amenacen a nuestros ciudadanos y les estafen su dinero ganado con trabajo arduo, independientemente del país desde el que operen", dijo el Inspector Postal de EE.UU. a Cargo Verrochio.
De acuerdo con los alegatos en la acusación formal, los empleados de los demandados en Perú, por medio del uso de llamadas telefónicas vía Internet, mintieron a víctimas de habla hispana en EE.UU. acerca de multas que debían y demandas judiciales que se iniciarían contra las víctimas. Los llamantes peruanos amenazaron a las víctimas y le dijeron falsamente a cada víctima que él o ella se negaron indebidamente a recibir un envío de productos. Los llamantes alegaron, también falsamente, que las víctimas debían miles de dólares en multas. En realidad, las víctimas nunca habían pedidos los productos y no se había realizado ningún intento de entregar productos a las víctimas.
La acusación formal alega que los empleados de Luzula y Rodríguez Cuya alegaron que los consumidores podrían resolver las multas si pagaban de inmediato un "cargo de resolución". Se les dijo a los consumidores que disputaron los cargos de resolución que, si no pagaban, podrían ser objeto de arresto, deportación, confiscación de propiedad o que sus puntajes de crédito podrían verse perjudicados. A pesar de que, en general, los consumidores objetaron que no pidieron ni rechazaron el envío de ningún producto, miles de consumidores aceptaron pagar los cargos debido a estas amenazas. La acusación formal alega que una sala telefónica en Miami cobraba los cargos.
Luzula y Rodríguez Cuya fueron acusados originalmente por medio de demanda penal y arrestados el 10 de enero de 2013. Permanecen encarcelados desde sus arrestos.
Los cargos en la acusación formal son meros alegatos, y se supone que los demandados son inocentes hasta que se pruebe lo contrario.
El Secretario de Justicia Auxiliar Delery elogió al Servicio de Inspección Postal por su labor de investigación y agradeció a la Fiscalía Federal para el Distrito Sur de Florida por sus aportes al caso. Están a cargo del enjuiciamiento del caso el Abogado Litigante Phil Toomajian y el Director Auxiliar Richard Goldberg de la Oficina de Protección del Consumidor de la División Civil del Departamento de Justicia.
Department of Justice Reaches Landmark Agreement to Improve Missoula County Attorney’s Office’s Response to Reports of Sexual AssaultRead the Press Release
The Department of Justice announced today that it has reached a comprehensive agreement with the Missoula County Attorney’s Office, as well as Missoula County, Montana, and the Montana Attorney General’s Office, to resolve the department’s investigation of alleged gender bias in the prosecution of sexual assaults by the Missoula County Attorney’s Office (MCAO). Under this first-of-its-kind agreement, MCAO and the county agree to take a number of significant steps to improve MCAO’s response to allegations of sexual assault and eliminate discrimination and gender bias. This agreement completes the Civil Rights Division’s investigation of the response by the Missoula criminal justice system and the University of Montana to sexual assault.
"This historic agreement will fundamentally transform the way in which the Missoula County Attorney's Office responds to sexual assault allegations," said Attorney General Eric Holder. "By taking key steps and implementing robust new safeguards to eliminate gender bias, improve communication and prosecution techniques, and increase support for victims, county law enforcement officials will strengthen their ability to combat sexual assault crimes, increase public safety, and protect those who are victimized. This action marks a critical step forward in the Justice Department's comprehensive efforts to ensure the safety and civil rights of all people across the country. And it is my hope that these remedies can serve as a model for the resolution of other cases moving forward."
Under the agreement, the MCAO will take the following steps, which will address gender bias in MCAO’s response to sexual assault and help to restore community confidence in the criminal justice system:
· Develop and implement sexual assault policies and training for prosecutors, including supervisors;
· Improve treatment of individuals who report sexual assault, including in-person interviews and improved communication;
· Use prosecution techniques that have been shown to result in better sexual assault investigations, through improved communication with law enforcement and victims, use of investigators, closer supervision of the development of cases, hiring an in-house victim coordinator, and the use of expert witnesses;
· Improve communication and coordination with other Missoula stakeholders regarding sexual assault response, including through public outreach and collaboration with the Missoula Police Department in conducting, and analyzing the results of, a victim witness survey; and
· Improve the tracking and sharing of data regarding sexual assault prosecutions, so that MCAO has a broader picture of what it is doing and can better identify any general concerns or necessary improvements.
Montana Attorney General Tim Fox, who has oversight authority over all Montana County Attorneys, has agreed to monitor the implementation of these measures, review sexual assault cases MCAO declines to prosecute, and retain a technical advisor, Anne Munch. Munch is a former sex crimes prosecutor and one of the country’s foremost experts in the subject area. As technical advisor, Munch will provide training to MCAO, advise the Montana Attorney General regarding policies, and make recommendations and provide reports regarding implementation that will be made publicly available, alongside the quarterly reports the Attorney General’s office will also publicly disseminate.
“Sexual assault is a crime that is all too pervasive and that has devastating consequences,” said Acting Assistant Attorney General for Civil Rights, Jocelyn Samuels. “Today’s agreement completes a plan for comprehensive reform at every stage of the law enforcement response, from the handling of complaints of assault by the University of Montana, through the investigation of crimes by the Missoula Police Department, to the prosecution of those crimes by the County Attorney. This holistic approach will enable the Missoula community to improve women’s safety and ensure respect for their civil rights.”
“Over the past year, the City of Missoula, the University of Montana, and the Missoula Police Department already have made important strides toward improving their response to sexual assault and strengthening the community’s confidence in its local police,” said Michael Cotter, United States Attorney for Montana. “We are delighted that the Missoula County Attorney has agreed to partner with them and to work cooperatively with the Justice Department to improve the safety of women in Missoula.”
Today’s agreement resolves the last outstanding component of the department’s multi-pronged investigation, launched in May of 2012, regarding the handling of sexual assault complaints made by women in Missoula. The investigation, conducted under the Violent Crime and Law Enforcement act of 1994, the Safe Streets Act, Title VI of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, evaluated the response to sexual assault at the University of Montana at Missoula, the University’s Office of Public Safety (OPS), the Missoula Police Department (MPD) and MCAO. In May of 2013, the department entered into agreements with the university, OPS and MPD to resolve findings related to those parties and address deficiencies in their response to sexual assaults. The implementation of those agreements has already improved these parties’ response to sexual assaults.
As part of today’s agreement, Missoula’s County Attorney will dismiss with prejudice the declaratory judgment action filed on behalf of the county attorney against the department in February of 2014. The department has agreed not to file suit regarding its allegations, outlined in a February 2014 letter of findings, that the MCAO’s response to sexual assault violated federal law.
The agreement, as well as a description of the Department of Justice’s work regarding sexual assault in Missoula, Montana, will be available at: http://www.justice.gov/crt/about/spl/ .
City of San Jacinto, California, Agrees to End Discriminatory Housing PracticesRead the Press Release
The Justice Department today announced a settlement with the city of San Jacinto, California, that resolves a lawsuit alleging disability discrimination filed in the U.S. District Court for the Central District of California. Under the settlement, San Jacinto has changed its laws to comply with the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA). In addition, the city has agreed to pay a total of $746,599 in compensatory damages to housing providers and former residents with disabilities, including private plaintiffs’ attorneys’ fees and costs, as well as a $10,000 civil penalty to the United States. The settlement is subject to court approval.
The Justice Department’s complaint, which was filed in November 2012, alleged that San Jacinto violated the FHA and the ADA by enacting an ordinance intended to exclude unlicensed and some licensed homes for persons with disabilities from the city, and by targeting homes for persons with disabilities for enforcement of the ordinance and other local laws.
“Municipalities and other governmental entities cannot violate federal civil rights statutes by hiding behind intentionally discriminatory laws designed to appear neutral on their face,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “No American should be denied his or her rights, subjected to harassment or excluded from our communities because of a disability. We commend the city for working cooperatively to resolve this matter and to enact legislation to safeguard the fair housing rights of its residents with disabilities.”
The city’s enforcement efforts included an early morning sweep of unlicensed group homes for persons with disabilities by city officials in November 2008, including the city attorney and representatives of the city’s Code Enforcement and Public Works Departments, as well as armed and uniformed law enforcement officers of the Riverside County Sheriff’s Department acting as agents for the city. The officials arrived at the homes unannounced and without warrants and interrogated the residents from a prepared questionnaire targeted to persons with mental disabilities. The questions included whether the residents were or ever had been drug addicts or alcoholics; whether they suffered from any form of mental illness, and if so, what type; whether they were taking “psych” medications, and if so, what kind; whether they or other residents were currently using illegal drugs or alcohol; whether they were on parole or probation; and whether they were registered sex offenders.
“Federal laws protect the fair housing rights of all people, and no local zoning or harassment can change that,” said the U.S. Department of Housing and Urban Development (HUD) Acting Assistant Secretary for Fair Housing and Equal Opportunity Dave Ziaya. “HUD and the Department of Justice remain committed to ensuring that everyone has access to housing free of discrimination, including people with disabilities.”
The case arose as a result of complaints filed with HUD by two providers of housing for persons with disabilities in the city. HUD investigated the complaints and referred them to the Justice Department, which conducted an investigation pursuant to the Attorney General’s independent authority under the FHA and the ADA.
The department’s lawsuit is being resolved together with a lawsuit filed by the two HUD complainants and a third individual whose case was consolidated with that of the United States. The settlement prohibits the city from imposing restrictions on housing for persons with disabilities that are not imposed on housing for an equal or greater number of persons without disabilities. This includes numerical occupancy limits on group housing for unrelated persons with disabilities that are more restrictive than numerical occupancy limits for families or other unrelated persons.
As part of the agreement, the city adopted an ordinance that creates a new zoning classification, “Group Home for Persons with Disabilities,” and under the ordinance, such homes are permitted use in all residential zones. The city also revised its process for providing persons with disabilities exceptions to its zoning and land use requirements to comport with the FHA and the ADA. The agreement also requires the city to pay for fair housing training of its officials, including council members and law enforcement officers employed by the Riverside County Sheriff’s Department; maintain records relating to future proposals for housing for persons with disabilities; and submit periodic compliance reports to the department for a period of five years.
The federal FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Title II of the ADA prohibits governments from discriminating on the basis of disability in administering their zoning laws. More information on the obligation of city and county governments not to discriminate on the basis of disability is available on the department’s website . Individuals who believe that they may have been victims of housing discrimination may call the housing discrimination tip line at 1-800-896-7743, e-mail the department at [email protected] , or contact HUD at 1-800-896-7743.
The Executive Office for Immigration Review to Host Stakeholder Teleconference and Webinar on Recognition and Accreditation ProgramRead the Press Release
SUMMARY - The Executive Office for Immigration Review (EOIR) invites interested parties to participate in a teleconference and Webinar providing a general overview of EOIR's recognition and accreditation program. This event is intended to educate interested parties about the process for obtaining recognition for an organization and accreditation for individuals.
DATE: Thursday, June 19, 2014, at 2 p.m.
RSVP: To RSVP for the meeting, please contact Lauren Alder Reid, Counsel for Legislative and Public Affairs, 703-305-0289, [email protected], by noon on Wednesday, June 18, 2014. Please note that there will be no in-person attendance for this event. EOIR will send call-in and Web access information on Wednesday, June 18th, to those who RSVP. To attend the meeting via conference call and Web, please RSVP with the name(s) of the attendee(s), the attendee's organization, and an email address where instructions may be sent for accessing the conference call and Web meeting.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Owner of New York Construction Companies Pleads Guilty to Tax FraudRead the Press Release
Eric Anderson, of Dix Hills, New York, pleaded guilty today in the U.S. District Court for the Eastern District of New York to the willful failure to collect and pay over employment taxes, the Justice Department and Internal Revenue Service (IRS) announced.
According to court documents, Anderson owned three construction companies located in Dix Hills: Anderson Framing, Anderson Enterprise and Anderson Trim Specialty. Anderson corruptly endeavored to obstruct the IRS between 2006 and 2008 by using a check cashing service to cash over $10.5 million of gross receipts checks paid to his construction companies. He concealed his check cashing activities from his tax return preparer so that the income was not included on the companies’ tax returns. Anderson paid his employees in cash while failing to collect and pay over employment taxes to the IRS. He also diverted cash receipts earned by his companies for his own personal use. Finally, after learning of the criminal investigation, Anderson shredded business records and lied to IRS investigators about his use of the check cashing service. The estimated tax loss resulting from Anderson’s activities is between $1 and $2.5 million.
Anderson faces a statutory potential maximum sentence of five years in prison and a potential fine of up to $250,000. U.S. District Judge Arthur Spatt set sentencing for Sept. 19, 2014.
The case was investigated by IRS-Criminal Investigation and is being prosecuted by Trial Attorneys Mark Kotila and Jeffrey Bender of the Justice Department’s Tax Division.
Justice Department and Montana Officials to Hold Press Conference Announcing Negotiated Agreements Regarding the Handling of Sexual Assault CasesRead the Press Release
Acting Assistant Attorney General for the Justice Department’s Civil Rights Division Jocelyn Samuels, U.S. Attorney for the District of Montana Michael Cotter, Montana Attorney General Tim Fox, Missoula County Attorney Fred Van Valkenburg and Missoula County Commissioner Bill Carey will hold a press conference TOMORROW, TUESDAY, JUNE 10, 2014 at 1:00 p.m. EDT (11:00 a.m. MDT), to announce negotiated agreements regarding the handling of sexual assault cases.
WHO: Acting Assistant Attorney General for the Justice Department’s Civil Rights Division Jocelyn Samuels U.S. Attorney for the District of Montana Michael Cotter Montana Attorney General Tim Fox Missoula County Attorney Fred Van Valkenburg and Missoula County Commissioner Bill Carey
WHAT: Press Conference
WHEN: Tuesday, June 10, 2014 , at 1:00 p.m. EDT (11:00 a.m. MDT)
WHERE: Missoula County Administration Building Commissioners Conference Room 206 , 199 W. Pine Street Missoula, Montana
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as driver’s license) as well as valid media credentials. Press inquiries regarding logistics should be directed to the Office of Public Affairs at 202-514-2007.
Justice Department Settles Employment Discrimination Allegations Against City of AustinRead the Press Release
The Department of Justice announced today that it has entered into and filed a consent decree that, if approved by the court, will resolve the department’s allegations that the city of Austin violated Title VII of the Civil Rights Act of 1964 by discriminating against African-American and Hispanic applicants for entry-level firefighter positions at the Austin Fire Department (AFD).
Title VII’s prohibitions of discrimination in employment forbid not only intentional discrimination, but also the use of employment practices, such as written tests, that result in disparate impact against any group based on the race, color, sex, national origin or religion of that group’s members, unless an employer can prove that such practices are job related and consistent with business necessity. Absent such proof, those practices do not identify the best qualified candidates and violate the law. The complaint, filed along with the consent decree in the U.S. District Court for the Western District of Texas in Austin, alleges that in 2012, the city used a written test that disproportionately eliminated African-Americans and Hispanics from the hiring process, and that Austin cannot demonstrate that its use of the test was job related and consistent with business necessity. Similarly, the complaint alleges that Austin’s method of weighting the 2012 assessments and processing candidates in descending rank order by composite score had an adverse impact on individuals in these protected groups who passed the written test, and that this practice was also not job related or consistent with business necessity. The United States has challenged the hiring process Austin planned to use for these positions in 2013 as well.
The Justice Department, along with the city of Austin, filed a joint motion today requesting that the court provisionally approve the consent decree executed by the parties and schedule an initial fairness hearing regarding the terms of the consent decree.
The consent decree requires that Austin no longer use the selection practices challenged by the United States in screening and selecting candidates for the AFD’s entry-level firefighter positions. The decree requires that Austin develop a new, lawful selection procedure that complies with Title VII, and also requires that the city pay $780,000 in back pay to entry-level firefighter applicants who were harmed by the 2012 hiring practice challenged by the United States and who are determined to be eligible for relief. Additionally, African-American and Hispanic applicants determined to be eligible for relief under the decree will be eligible for one of 30 priority appointments to an entry-level firefighter position with the AFD. All applicants must pass the new, lawful selection procedure and other lawful selection procedures in order to be considered for priority hire relief. African-American and Hispanic applicants who are offered priority hire relief are also eligible for retroactive seniority.
“The Department of Justice will not permit employers to use screening and selection devices that adversely affect any protected group unless those devices are shown to properly distinguish between qualified and unqualified applicants,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The department commends Austin for its efforts to address these issues and to ensure that effective, Title VII-compliant selection practices are put into place.”
The department and the U.S. Equal Employment Opportunity Commission (EEOC) each investigated the AFD’s hiring practices. Today’s proposed resolution was made possible in part through collaboration between the department and the San Antonio Field Office of the EEOC.
More information about Title VII and other federal employment laws is available on the Department of Justice website.
Justice Department Officials to Hold Press Call Announcing Negotiated Agreements Regarding the Handling of Sexual Assault CasesRead the Press Release
Acting Assistant Attorney General for the Justice Department’s Civil Rights Division Jocelyn Samuels and U.S. Attorney for the District of Montana Michael Cotter will hold a press call TOMORROW, TUESDAY, JUNE 10, 2014 at 1:45 p.m. EDT (11:45 a.m. MDT), for reporters who are unable to attend in person the 1:00 p.m. EDT (11:00 a.m. MDT), press conference announcing negotiated agreements regarding the handling of sexual assault cases.
WHO: Acting Assistant Attorney General for the Justice Department’s Civil Rights Division Jocelyn Samuels and U.S. Attorney for the District of Montana Michael Cotter
WHAT: Press Conference Call
WHEN: Tuesday, June 10, 2014 at 1:45 p.m. EDT (11:45 a.m. MDT)
CALL IN: 1-800-860-2442 Call title: Press Call on Missoula, Montana, Agreement
NOTE: Participants will be asked for their name and media outlet. Press inquiries may be directed to the Office of Public Affairs at 202-514-2007.
INTERPOL Secretary General Launches Global Awareness Campaign Entitled Turn Back CrimeRead the Press Release
INTERPOL Secretary General Launches Global Awareness Campaign Entitled Turn Back Crime
Attorney General Holder Suggests New Proposal to Boost Voting Access for American Indians and Alaska NativesRead the Press Release
In a new step to boost voting access for American Indians and Alaska Natives, Attorney General Eric Holder today suggested the idea of requiring state and local election administrators whose territory includes tribal lands to place at least one polling site in a location chosen by the tribal government. Attorney General Holder said the Justice Department would begin consulting with tribal authorities about the concept, and following consultations, would seek to cooperate with Congress on enacting the potential proposal.
Attorney General Holder said action was necessary to confront the range of factors that have contributed to the reduced voting access experienced by American Indians and Alaska Natives. Those factors include inaccessible polling places in tribal areas, English-only ballots for areas with limited English proficiency, and "precinct realignment" practices that attempt to combine geographically isolated Native communities.
“These conditions are not only unacceptable, they’re outrageous,” said Attorney General Holder. "As a nation, we cannot, and we will not, simply stand by as the voices of Native Americans are shut out of the democratic process. I am personally committed to working with tribal authorities – and with Congress – to confront disparities and end misguided voting practices once and for all.”
Attorney General Holder made the remarks in his weekly video message, which was posted on the Justice Department’s website.
Later today, Associate Attorney General Tony West will expand on this announcement in his remarks at the National Congress of American Indian Mid-year Conference in Anchorage, Alaska. In his remarks, Associate Attorney General West will denounce the use of discriminatory practices used to prevent certain groups from participating in the voting process and further discuss the need to take critical next steps to tackle disenfranchisement among Indian Americans and Alaska Natives.
“Our proposal would give American Indian and Alaska Native voters a right that most other citizens take for granted: a polling place in their community where they can cast a ballot and receive voter assistance to make sure their vote will be counted,” Associate Attorney General West will say in his remarks. “We take this step because voting is a legal right we guarantee to our citizens. We do it because it is right. And we do it because our shared history compels no less.”
The complete text of Attorney General Holder’s video message is copied below:
“At every level of our nation’s Department of Justice, my colleagues and I are firmly committed to protecting the voting rights of every eligible American. Unfortunately, when it comes to exercising this fundamental right, many individuals and communities face significant obstacles. And this is particularly true among American Indian and Alaska Native populations.
“All too often, tribal communities must contend with inaccessible polling places, reduced voting hours – and even requirements for mail-in, English-only ballots in places with low literacy rates and limited English proficiency. In some areas in Alaska, for example, state election officials have engaged in “precinct realignment” practices that combine two or more geographically isolated Native communities that are accessible to one another only by air or boat. For some voters, this means that casting a ballot would require them to cross a body of water or a mountain range that’s impassable on a snowy November Election Day.
“Let me be clear: these conditions are not only unacceptable – they’re outrageous. As a nation, we cannot – and we will not – simply stand by as the voices of Native Americans are shut out of the democratic process. And I am personally committed to working with tribal authorities – and with Congress – to confront disparities and end misguided voting practices once and for all.
“As Attorney General, I support taking whatever steps are necessary to guarantee that voters have access to polling places on Indian reservations and in Alaska Native villages. One idea in this regard would be federal legislation requiring any state or local election administrator whose territory includes all or part of an Indian reservation, an Alaska Native village, or other tribal lands to locate at least one polling place in a venue selected by the tribal government. In other words, we suggest that each tribe in the nation should have at least one polling place in a location of its choice. To consider this idea, the Justice Department will officially enter into formal consultations with sovereign tribes. If the tribes support it, the department will formally propose legislation to Congress and work to enact it.
“For decades upon decades, American Indians and Alaska Natives have faced a distinctive history of discrimination that has adversely affected their right to vote. As I made clear last November – at a White House Tribal Nations Conference in Washington – this Department of Justice and this Administration will never waver in our commitment to tribal sovereignty and self-determination. Today, we’re taking a critical step to make good on that commitment. And we’re reaffirming our dedication to expanding the ability of native peoples to exercise their most fundamental rights, to chart their own courses, and to build the better and brighter futures that they and their children deserve.”
The full video message is available at http://www.justice.gov/agwa.php.
Reputed Aryan Brotherhood of Texas Gang Leader Pleads Guilty to Federal Racketeering ChargesRead the Press Release
An alleged general of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Terry Ross Blake, aka “Big Terry,” 56, of Corpus Christi, Texas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Blake and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Blake and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Blake admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Oct. 8, 2014, Blake faces a maximum penalty of life in prison.
Blake is one of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 28 defendants have pleaded guilty.
This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.Justice Department and CNCS Announce New Partnership to Enhance Immigration Courts and Provide Critical Legal Assistance to Unaccompanied MinorsRead the Press Release
The Corporation for National and Community Service (CNCS), which administers AmeriCorps, and the Department of Justice today announced “justice AmeriCorps,” a strategic partnership to increase national service opportunities while enhancing the effective and efficient adjudication of immigration proceedings involving certain children who have crossed the U.S. border without a parent or legal guardian.
The interagency agreement reflects the spirit of a presidential memorandum issued on July 15, 2013, that established the Task Force on Expanding National Service. The task force calls on federal agency leaders to identify ways to address some of the nation's most pressing challenges by expanding national service.
“With the launch of justice AmeriCorps, we're taking a historic step to strengthen our justice system and protect the rights of the most vulnerable members of society,” said Attorney General Eric Holder. “How we treat those in need, particularly young people who must appear in immigration proceedings - many of whom are fleeing violence, persecution, abuse or trafficking - goes to the core of who we are as a nation. Through this program, we reaffirm our allegiance to the values that have always shaped our pursuit of justice. We empower new generations of aspiring attorneys and paralegals to serve their country and stand on the front lines of this fight. And we bolster both the efficacy and the efficiency of our immigration courts.”
“Young immigrant children entering the U.S., often under dangerous circumstances, represent some of the most vulnerable individuals who interact with our immigration system,” said Wendy Spencer, Chief Executive Officer of CNCS. “AmeriCorps members will provide critical support for these children, many of whom are escaping abuse, persecution or violence. The justice AmeriCorps partnership responds to a direct call from Congress, and reflects how national service can be a part of the solution to some of the most challenging issues facing our country today.”
The partnership, known as justice AmeriCorps, is a grant program that will enroll approximately 100 lawyers and paralegals as AmeriCorps members to provide legal services to the most vulnerable of these children, responding to Congress' direction to the department’s Executive Office for Immigration Review (EOIR) “to better serve vulnerable populations such as children and improve court efficiency through pilot efforts aimed at improving legal representation.” In addition, department officials believe the AmeriCorps members will help identify unaccompanied immigrant children who have been victims of human trafficking or abuse to assist in the investigation and prosecution of those who perpetrate such crimes on those children.
CNCS is a federal agency that engages more than five million Americans in service through its AmeriCorps, Senior Corps, Social Innovation Fund and other programs, and leads the President’s national call to service initiative, United We Serve. For more information, visit CNCS' website.
EOIR is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to the United States’ immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.