District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Army Soldier Sentenced for Facilitating <br /> Thefts of Fuel in AfghanistanRead the Press Release
A U.S. Army soldier was sentenced to serve 12 months and one day in prison for his role in stealing fuel at Forward Operating Base (FOB) Fenty near Jalalabad, Afghanistan.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David J. Hale of the Western District of Kentucky made the announcement after sentencing by U.S. District Court Judge Thomas B. Russell in the Western District of Kentucky.
According to court documents, in May and June 2010, U.S. Army Sergeant Kevin Bilal Abdullah, 40, of Clarksville, Tenn., was involved in overseeing the delivery of fuel from FOB Fenty to other military bases. Abdullah created fraudulent documents called Transportation Movement Requests purporting to authorize the transport of fuel from FOB Fenty to other military bases, even though no legitimate fuel transportation was required. After the trucks were filled with fuel, these fraudulent documents were used by the drivers of the fuel trucks at FOB Fenty’s departure checkpoint to justify the trucks’ departures. In truth, the fuel was simply stolen, and Abdullah and his co-conspirators received payment in cash from a representative of the Afghan trucking company that allegedly stole the fuel.
Abdullah pleaded guilty on Aug. 29, 2013, to receiving payments from a representative of the trucking company in exchange for facilitating the theft of fuel in approximately 25 fuel trucks. He pleaded guilty to conspiracy to commit bribery and to the substantive count of bribery. At sentencing, he was ordered to pay $466,250 in restitution.
Abdullah’s sentencing was the fourth conviction arising from this investigation of fuel thefts at FOB Fenty. On Aug. 3, 2012, Jonathan Hightower, a civilian employee of a military contractor who had conspired with Abdullah and others, pleaded guilty to similar charges. After cooperating with the government, he was sentenced on Oct. 28, 2013, to serve 27 months in prison. On Oct.10, 2012, Christopher Weaver, another conspirator, pleaded guilty to fuel theft charges and, after cooperating with the government, was sentenced on Oct. 28, 2013, to serve 37 months in prison. On Sept. 5, 2013, former Specialist Stephanie Charboneau pleaded guilty, and on Feb. 4, 2014, she was sentenced to serve 87 months in prison. Weaver, Hightower and Charboneau were prosecuted in the District of Colorado.
These cases were investigated by the Special Inspector General for Afghanistan Reconstruction (SIGAR), the Department of the Army - Criminal Investigation Division, the Defense Criminal Investigative Service and the FBI.
The Abdullah case was handled by Special Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section, on detail from SIGAR, and Assistant U.S. Attorney Michael Bennett.Swiss Banker Pleads Guilty to Conspiring with U.S. Tax Evaders, Other Swiss Bankers and Bank ManagementRead the Press Release
Andreas Bachmann, 56, of Switzerland, pleaded guilty today to conspiring to defraud the Internal Revenue Service (IRS) in connection with his work as a banking and investment adviser for U.S. customers.
Deputy Attorney General James Cole, Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally, Acting U.S. Attorney Dana J. Boente for the Eastern District of Virginia and IRS-Criminal Investigation Chief Richard Weber made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee.
“Today’s plea is just the latest step in our wide-ranging investigations into Swiss banking activities and demonstrates the Department of Justice's commitment to global enforcement against those that facilitate offshore tax evasion,” said Deputy Attorney General Cole. “We fully expect additional developments over the course of the coming months.”
Bachmann was charged in a one-count superseding indictment on July 21, 2011, and faces a maximum penalty of five years in prison when he is sentenced on Aug. 8, 2014.
In a statement of facts filed with the plea agreement, Bachmann admitted that between 1994 and 2006, while working as a relationship manager in Switzerland for a subsidiary of an international bank, he engaged in a wide-ranging conspiracy to aid and assist U.S. customers in evading their income taxes by concealing assets and income in secret Swiss bank accounts.
As part of that conspiracy, Bachmann traveled to the United States twice each year to provide banking services and investment advice to his U.S. customers. As a matter of practice, prior to traveling to the United States, Bachmann notified his executive management, including the head of the subsidiary’s private bank in Zurich and the chief executive officer of the subsidiary, of the planned trip and its objectives.
Although Bachmann had been informed of limitations under U.S. law on his ability to provide investment advice to U.S. account holders regarding U.S. securities, the highest ranking executive at the subsidiary was aware that Bachmann was violating U.S. law. According to the statement of facts, Bachmann was effectively told by the chief executive officer for the subsidiary, “Mr. Bachmann, you know what we expect of you, don’t get caught.”
According to the statement of facts, Bachmann also engaged in cash transactions while traveling in the United States. In the course of arranging meetings with U.S. customers, some clients would request that Bachmann either provide them with cash as withdrawals from their undeclared accounts or take cash from them as a deposit to their undeclared accounts. As part of that process, Bachmann agreed to receive cash from U.S. customers and used that cash to pay withdrawals to other U.S. clients. In one instance, Bachmann received $50,000 in cash from one U.S. customer in New York City and intended to deliver the money to another U.S. client in Southern Florida. Airport officials in New York discovered the cash but let Bachmann keep the money after questioning him. The client in Florida refused to take the money after the client learned about the questioning by New York airport officials, and Bachmann returned to Switzerland with the $50,000 in cash in his checked baggage. Bachmann advised the executive management of the subsidiary about the incident with the cash.
Bachmann also understood that a number of his U.S. customers concealed their ownership and control of foreign financial accounts by holding those accounts in the names of nominee tax haven entities, or structures, which were frequently created in the form of foreign partnerships, trusts, corporations or foundations.
Bachmann dealt with Josef Dӧrig, a co-defendant, regarding the formation and/or maintenance of structures for U.S. customers, among others. In approximately 1997, the international bank instructed Dӧrig to form his own company specializing in the formation and management of nominee tax haven entities because it was “too risky” to have Dörig perform that work from inside the international bank. The international bank then directed the subsidiary and others to use Dӧrig and his Swiss trust company, Dӧrig Partner AG, as the preferred choice for the formation and management of structures.
This case is being investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Mark D. Lytle and Tax Division Trial Attorneys Mark F. Daly, Nanette L. Davis and Jason Poole are prosecuting the case.
A copy of this press release may be found on this website for the United States Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia here and here.
Related Materials:
United States v. Andreas M. Bachmann, etc.
Plea Agreement
Statement of FactsJustice Department Seeks Temporary Restraining Order to Stop Ohio Department of Youth Services from Excessively Secluding Boys with Mental Health NeedsRead the Press Release
Today, the Justice Department sought a federal court order temporarily restraining the Ohio Department of Youth Services (DYS) from unlawfully secluding boys with mental health needs in its juvenile correctional facilities. The requested order would require DYS to abide by safeguards in its use of seclusion until a final ruling on the claims that DYS’ seclusion practices violate the constitutional rights of boys in DYS custody. In conjunction with its request for a temporary restraining order, the department sought to expand its existing complaint regarding the Scioto Juvenile Correctional Facility, to include claims of unlawful seclusion at all of the DYS facilities.
The department’s request for a restraining order detailed the state’s excessive use of seclusion, including the following information:
· In the second half of 2013, the state imposed a total of almost 60,000 hours of seclusion on 229 boys with mental health needs;
· One boy spent 1,964 hours in seclusion over six months; the state gave another boy 21 straight days of seclusion;
· Ten boys at one facility spent over 10 percent of their time in custody in seclusion;
· While secluded, several boys were on suicide watch, had suicidal thoughts or hurt themselves.
“The Ohio Department of Youth Services must stop violating the rights of youth in its custody through unlawful seclusion,” said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division. “The way in which Ohio uses seclusion to punish youth with mental health needs, victimizes one of the most vulnerable groups in our society.”
“Ohio’s juvenile correctional facilities must comply with the Eighth and 14th Amendments,” said U.S. Attorney Carter Stewart for the Southern District of Ohio. “We will remain vigilant in protecting the constitutional rights of all our citizens, particularly young people and those with mental illness.”
“The facts in this case reveal a serious disregard for the rights of young people with mental health needs in Ohio’s custody,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio. “The Ohio Department of Youth Services has a responsibility to ensure the health and safety of these young people, including providing appropriate mental health treatment, so that they can overcome challenging behaviors and return to the community to become successful adults.”
Following an investigation under the Violent Crime Control and Law Enforcement Act of 1994 and the Civil Rights of Institutionalized Persons Act (CRIPA), the Justice Department issued findings in May 2007 detailing significant constitutional deficiencies regarding use of physical force, grievance investigation and processing and use of seclusion. In June 2008, the department entered into a consent decree with the state to correct these deficiencies at the Scioto Juvenile Correctional Facility. However, the recent discovery that DYS continued to unlawfully seclude boys with mental health needs at Scioto Juvenile Correctional Facility and had moved boys to other DYS facilities also using unlawful seclusion prompted the department today to seek a temporary restraining order and an order allowing it to add the remaining DYS facilities to its complaint.
This case is being litigated by attorneys from the Special Litigation Section of the Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Ohio and the U.S. Attorney’s Office for the Northern District of Ohio. Copies of both motions and additional information about the Civil Rights Division will be available on its website.
Jury Convicts All Seven Defendants in <br /> $97 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Houston today convicted two owners of a former Houston mental health care company, Spectrum Care P.A. (Spectrum), several of its employees and the owners of certain Houston group care homes for their participation in a $97 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office and Special Agent in Charge Mike Fields of the Dallas Regional Office of HHS’s Office of Inspector General (HHS-OIG), the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU), Special Agent in Charge Joseph J. Del Favero of the Chicago Field Office of the Railroad Retirement Board, Office of Inspector General (RRB-OIG) and Special Agent in Charge Scott Rezendes of Field Operations of the Office of Personnel Management’s Office of Inspector General (OPM-OIG) made the announcement following a jury trial before U.S. District Judge Vanessa Gilmore in the Southern District of Texas.
Physicians Mansour Sanjar, 81, and Cyrus Sajadi, 66, the owners of Spectrum, were each convicted of conspiracy to commit health care fraud and conspiracy to pay kickbacks as well as related counts of health care fraud and paying illegal kickbacks. Adam Main, 33, a physician’s assistant, was convicted of conspiracy to commit health care fraud and related counts of health care fraud. Shokoufeh Hakimi, 66, administrator of Spectrum, was convicted of conspiracy to commit health care fraud, conspiracy to pay kickbacks and a related count of paying an illegal kickback. Chandra Nunn, 35, a group home owner, was also convicted of conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks and related counts of receiving illegal kickbacks. Sharonda Holmes, 40, a patient recruiter, was convicted of conspiracy to pay and receive kickbacks and a related count of receiving an illegal kickback. Shawn Manney, 51, a group home owner, was convicted of conspiracy to pay and receive illegal kickbacks.
According to evidence presented at trial, Sanjar and Sajadi orchestrated and executed a scheme to defraud Medicare beginning in 2006 and continuing until their arrest in December 2011. Sanjar and Sajadi owned Spectrum, which purportedly provided partial hospitalization program (PHP) services. A PHP is a form of intensive outpatient treatment for severe mental illness. The Medicare beneficiaries for whom Spectrum billed Medicare for PHP services did not qualify for or need PHP services. Sanjar, Sajadi, Main and Moore signed admission documents and progress notes certifying that patients qualified for PHP services, when in fact, the patients did not qualify for or need PHP services. Sanjar and Sajadi also billed Medicare for PHP services when the beneficiaries were actually watching movies, coloring and playing games–activities that are not covered by Medicare.
Evidence presented at trial showed that Sanjar, Sajadi and Hakimi paid kickbacks to Nunn, Holmes, Manney and other group care home operators and patient recruiters in exchange for delivering ineligible Medicare beneficiaries to Spectrum. In some cases, the patients received a portion of those kickbacks. According to evidence presented at trial, Spectrum billed Medicare for approximately $97 million in services that were not medically necessary and, in some cases, werenot provided.
Sanjar, Sajadi and Nunn are scheduled to be sentenced on Sept. 8, 2014. Main, Hakimi, Holmes and Manney are scheduled to be sentenced on Sept. 15, 2014.
The case was investigated by the FBI, HHS-OIG, Texas MFCU, RRB-OIG and OPM-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 Texas. The case is being prosecuted by Assistant Chief Laura M.K. Cordova and Trial Attorneys Jonathan T. Baum and William S.W. Chang 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 more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 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 .INTERPOL Washington Director Shawn A. Bray Presents at the 2014 Symantec Government SymposiumRead the Press Release
USDOJ: INTERPOL Washington: Updates
Department of Justice
INTERPOL Washington FOR IMMEDIATE RELEASE Monday, March 12, 2014INTERPOL Washington Director Shawn A. Bray Presents at the 2014 Symantec Government Symposium
WASHINGTON - On Tuesday, March 11, 2014, Director Bray attended the annual Symantec Government Symposium where he presented on the topic “Fighting Cybercrime in a Borderless World.” The theme for this year's symposium was “Resilient Security for Today's World.” Other distinguished members of the panel included Department of Justice's Principal Deputy Chief Richard Downing, Computer Crime and Intellectual Property; Catherine Lotrionte, Director of the Institute for Law, Science and Global Security from Georgetown University; and Senior Advisor for Cybercrime James Vigil, Bureau for International Narcotics and Law Enforcement Affairs at the Department of State. The Symantec Government Symposium is the world's largest annual information security event for government audiences where the nation's top IT leaders can discuss how government and industry can collaborate and best secure America's critical infrastructure.
U.K. Resident Sentenced to 16 Years in Prison for <br /> Travelling to Ohio to Have Sex with a MinorRead the Press Release
Richard Castle, 47, a resident of the United Kingdom, has been sentenced to serve 192 months in prison in connection with a trip he made to Ohio from his home in the United Kingdom to have illicit sexual activity with a minor in June 2011.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Marlon Miller of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan made the announcement after the sentencing proceeding before U.S. District Judge Timothy S. Black in Dayton, Ohio.
Members of the Metropolitan Police Service’s Extradition Team and International Assistance Unit, housed within New Scotland Yard, arrested Castle at his home in Northampton, England, on Jan. 12, 2012.
A federal grand jury indicted Castle on Feb. 15, 2012, and Castle pleaded guilty on Oct. 3, 2013, to charges of coercion of a minor, travelling with intent to engage in illicit sexual contact with a minor and transferring obscene material to a minor. Castle admitted that, posing as a male named Richard Joshua Parker, he used the Internet between March 2009 and June 2011 to coerce a minor to engage in illicit sexual activity. He flew to Dayton in June 2011 to engage in illicit sexual relations with the minor and stayed approximately three weeks. Castle also admitted that he transferred obscene materials to this same minor.
The case was investigated by HSI, the Englewood Police Department, and the Vandalia Police Department. The Department is grateful for the invaluable support provided by the Miami Valley Regional Computer Forensics Laboratory, the Ohio Internet Crimes Against Children Task Force, the U.S. Marshals Service, the HSI Attaché London Office, and the ICE Office of the Principal Legal Advisor. The Criminal Division’s Office of International Affairs also provided assistance with Castle’s extradition.
The case was prosecuted by Assistant U.S. Attorney Sheila Lafferty of the Southern District of Ohio and Trial Attorney Mi Yung C. Park of the Criminal Division’s Child Exploitation and Obscenity Section.Two Real Estate Investors Convicted for Roles in Bid-Rigging Conspiracy in San Joaquin County, Calif. Real Estate Foreclosure AuctionsRead the Press Release
WASHINGTON — Following a four-week trial, a federal jury today convicted two real estate investors for conspiring to rig bids at public real estate foreclosure auctions held in San Joaquin County, Calif. One of the investors was also convicted of obstruction of justice for destroying evidence related to the crimes.
Andrew B. Katakis and Donald M. Parker were found guilty in the U.S. District Court for the Eastern District of California, of conspiring to rig bids at real estate foreclosure auctions held in San Joaquin County from at least September 2008 until at least October 2009. Katakis was also found guilty of obstruction of justice for deleting electronic records related to the conspiracy.
Katakis was the owner of California Equity Management Group Inc. and managing partner of Lenders Financial Group LLC, both real estate investing companies based in Modesto, Calif. Parker owned and worked for several real estate investing companies based in and around Sacramento and Stockton, Calif.
“Today’s convictions send a clear signal that conspirators who illegally seek to line their pockets at the expense of distressed homeowners will be held accountable for their crimes,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division and its law enforcement partners are committed to vigorously prosecuting the perpetrators of anticompetitive schemes.”
“The depressed real estate market in the Central Valley provided opportunities for fraud, including bid-rigging at foreclosure auctions,” said Benjamin B. Wagner, U.S. Attorney for the Eastern District of California. “The Antitrust Division has done great work in partnering with this office to attack this aspect of mortgage fraud.”
According to the evidence presented at trial, Katakis, Parker and co-conspirators agreed to suppress and restrain competition by rigging bids to obtain selected properties offered at public auctions in San Joaquin County. The bid-rigging conspiracy lasted from at least September 2008 until at least October 2009. The government also offered evidence that in September 2010, Katakis deleted electronic records related to the conspiracy after he received a letter notifying him that a federal grand jury had subpoenaed his bank account.
Evidence showed that after the conspirators’ designated bidder bought a property at a public auction, they would hold a second, private auction, at which each participating conspirator would bid the amount above the public auction price he or she was willing to pay. The conspirator who bid the highest amount at the end of the private auction won the property. The difference between the price at the public auction and that at the second auction was the group’s illicit profit, and it was divided among the conspirators in payoffs.
Also today, the jury could not reach a verdict on a count of mail fraud against Katakis and Parker. The jury also found W. Theodore Longley, an auctioneer who worked on behalf of various trustee companies to sell foreclosed houses at public auctions in San Joaquin County, not guilty on both counts.
Katakis and Parker were convicted of bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. The obstruction of justice conviction carries a maximum sentence of 20 years in prison and a $250,000 fine.
In addition to today’s convictions, 11 individuals have pleaded guilty in U.S. District Court for the Eastern District of California in connection with the investigation. They are: Anthony B. Ghio; John R. Vanzetti; Theodore B. Hutz; Richard W. Northcutt; Yama Marifat; Gregory L. Jackson; Walter Daniel Olmstead; Robert Rose; Kenneth A. Swanger; Wiley Chandler; and Anthony B. Joachim.
These convictions arose from an ongoing federal antitrust investigation of fraud and bidding irregularities in certain real estate auctions in San Joaquin County. The investigation is being conducted by the Antitrust Division’s San Francisco Office, the U.S. Attorney’s Office for the Eastern District of California, the FBI’s Sacramento Division, and the San Joaquin County District Attorney’s Office. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300, visit www.justice.gov/atr/contact/newcase.htm, contact the U.S. Attorney’s Office for the Eastern District of California at 916-554-2700 or contact the FBI’s Sacramento Division at 916-481-9110.
The charges in this indictment were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Two Northern California Real Estate Investors Charged with Bid Rigging at Public Foreclosure AuctionsRead the Press Release
Two Northern California real estate investors pleaded guilty for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed on June 30, 2011, in the U.S. District Court for the Northern District of California in Oakland, against Grant Alvernaz, of Pleasant Hill, Calif., and Douglas Moore, of Walnut Creek, Calif. Alvernaz pleaded guilty to the charges on Sept. 7, 2011. Moore pleaded guilty to the charges on Aug. 24, 2011. The charges and the guilty pleas were unsealed yesterday. Including Alvernaz and Moore, a total of 46 individuals have pleaded guilty or agreed to plead guilty as a result of the department’s ongoing antitrust investigation into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Alvernaz and Moore conspired with others not to bid against one another, and instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Contra Costa and Alameda counties, Calif. Alvernaz and Moore were also charged with conspiring to commit mail fraud by fraudulently acquiring title to selected Contra Costa and Alameda County properties sold at public auctions and making and receiving payoffs and diverting money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held. Alvernaz and Moore pleaded guilty to participating in the conspiracies in Contra Costa County beginning as early as February 2009 and continuing until in or about December 2010 and in Alameda County from as early as March 2009 and continuing until about November 2010.
“The integrity of real estate foreclosure markets depends on open and honest competition, which the perpetrators of these collusive schemes undermined,” said Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division. “The division will continue to pursue those who illegally enrich themselves at the expense of lenders and financially distressed homeowners.”
The department stated that the primary purpose of the conspiracies was to suppress and restrain competition in order to obtain selected real estate offered at Contra Costa and Alameda County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties and, in some cases, the defaulting homeowner.
“The unsealed court documents narrate the criminal actions taken as part of this real estate bid-rigging conspiracy in northern California,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The public should consider this an example of how a competitive marketplace can be taken advantage of by those who are shortsighted by greed.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
The charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, or call the FBI tip line at 415-553-7400.
Today’s cases were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**
Third Defendant Pleads Guilty to Racially-Motivated Assault on White Man and African-American Woman in CaliforniaRead the Press Release
Anthony Merrell Tyler, 33, pleaded guilty in federal court today to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for his role in a 2011 racially motivated attack on a white man and an African-American woman in Marysville, Calif. Tyler’s co-defendants, Billy James Hammett, 30, and Perry Sylvester Jackson, 28, pleaded guilty to the same offense on Dec. 17, 2013.
According to documents filed with the court, around 10:45 p.m. on April 18, 2011, a white man and an African-American woman parked their car at a convenience store in Marysville. Shortly afterward, the three defendants, each of whom has white supremacist tattoos, attacked the man and woman based on race. After calling the male victim a “[racial slur]-lover,” Jackson punched him twice in the head through the open passenger window. At the same time, Hammett kicked the woman in the chest. A few seconds later, Tyler smashed the car’s windshield with a crowbar. As the attack continued, the woman managed to take refuge inside the convenience store. All three assailants then descended upon the male victim and began attacking him in the parking lot. He sustained abrasions on his right forearm and knees, while the woman suffered bruising to her chest. At the end of the incident, Tyler used a racial slur to refer to an African-American witness.
“These defendants attacked the victims simply because of race,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “Such violence and intimidation have no place in our society. Where these acts occur, the Department will continue to aggressively prosecute them.”
“Diligently prosecuting hate crimes such as the unprovoked, racially motivated assault in this case has been a core mission of the U.S. Attorney’s Office in this district,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California. “That mission will continue.”
Tyler’s sentencing is scheduled for July 8, 2014. Hammett is scheduled to be sentenced on March 25, 2014, and Jackson has requested a sentencing date of April 22, 2014. Each defendant faces a statutory maximum sentence of 10 years in prison and a fine of $250,000.
This case was investigated by the FBI. The case is being prosecuted by U.S. Attorney Wagner and Trial Attorney Chiraag Bains of the Civil Rights Division.
Pharmaceutical Company to Pay $27.6 Million to Settle Allegations <br /> Involving False Billings to Federal Health Care ProgramsRead the Press Release
Pharmaceutical manufacturer Teva Pharmaceuticals USA Inc. and a subsidiary, IVAX LLC, have agreed to pay the government and the state of Illinois $27.6 million for allegedly violating the False Claims Act by making payments to induce prescriptions of an anti-psychotic drug for Medicare and Medicaid beneficiaries . Teva Pharmaceuticals USA is located in North Wales, Pa., and IVAX LLC is a Florida company.
“The Department of Justice is committed to ensuring that pharmaceutical manufacturers who make payments to doctors to influence prescribing decisions are held accountable,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Schemes such as the one alleged in this case undermine the health care system and take advantage of vulnerable patients.”
“ Pharmaceutical companies must not be allowed to improperly influence physicians’ decisions in prescribing medication for their patients,” said U.S. Attorney Zachary T. Fardon for the Northern District of Illinois. “Instead, those decisions must be made solely on the basis of the patient’s best medical interests.”
The settlement resolves allegations that Teva and IVAX made payments to an Illinois physician, Dr. Michael J. Reinstein, to induce the prescription of generic clozapine, an anti-psychotic medication. Clozapine has serious potential side effects and is generally considered a drug of last resort, particularly for elderly patients. While clozapine has been approved for treatment-resistant forms of schizophrenia, it is also reported to cause numerous side effects, including a potentially deadly decrease in white blood cells, seizures, inflammation of the heart muscle and increased mortality in elderly patients. The United States alleged that the payment scheme involving Reinstein began in August 2003, when Reinstein agreed to switch his patients to generic clozapine if IVAX, which was subsequently acquired by Teva Pharmaceuticals’ parent corporation, agreed to pay Reinstein $50,000 under a one-year “consulting agreement” and to provide other benefits to Reinstein , in violation of the federal Medicare and Medicaid Anti-Kickback Statute In addition to direct payments to Reinstein, IVAX allegedly also provided all-expenses paid trips to Miami for Reinstein, his wife and several of his employees. Reinstein quickly became the largest prescriber of generic clozapine in the country, and prescribed the drug for many elderly patients. Allegedly, the payments and other forms of remuneration from IVAX and later Teva Pharmaceuticals continued for many years, and resulted in the submission of thousands of false claims to the Medicare Part D and Illinois Medicaid programs.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
On Nov. 15, 2012, the United States filed a civil action against Reinstein in United States v. Reinstein , alleging that he violated the False Claims Act as a result of his involvement in the payment scheme with Teva and IVAX. The civil action against Reinstein remains pending in the Northern District of Illinois.The government’s settlement of these allegations illustrates its emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with Teva Pharmaceuticals and IVAX was the result of a coordinated effort by the U.S. Attorney’s Office for the Northern District of Illinois, the Commercial Litigation Branch of the Justice Department’s Civil Division, the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Justice Department Reaches Settlement with Blair County, Pa., over Polling Place Access for Voters with DisabilitiesRead the Press Release
The Justice Department today announced a settlement under Title II of the Americans with Disabilities Act (ADA) with Blair County, Pa., to greatly improve physical accessibility at the county’s polling places for individuals who use wheelchairs and other mobility aids and for individuals who are blind or have vision impairments. Title II prohibits discrimination on the basis of disability by a state or local government in any of its programs or services, including its voting program.
Under the terms of the settlement, accessibility will be a major criterion in the county’s selection of polling places. To make that assessment, the county will use an evaluation form for each prospective polling place based on ADA architectural standards. The settlement requires the county to either relocate inaccessible polling places to accessible facilities or to use temporary measures such as portable ramps, signs, traffic cones and doorbells where appropriate to ensure accessibility on Election Day. The settlement will provide individuals with disabilities the opportunity to vote at the polls throughout Blair County, rather than solely through the use of an absentee ballot.
“The right to vote is the cornerstone of our democracy,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “This agreement will ensure that persons with mobility disabilities and vision impairments have equal opportunities to exercise their right to vote in person at their assigned polling place, just like their neighbors. The Justice Department is committed to continued, vigorous enforcement of the panoply of federal civil rights laws aimed at securing the right to vote for all Americans, including the Americans with Disabilities Act.”
More information about this settlement and the ADA is available at the Justice Department’s toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY), and via its ADA website.
INTERPOL Stolen/Lost Travel Document DatabaseRead the Press Release
USDOJ: INTERPOL Washington: Updates
Department of Justice
INTERPOL Washington FOR IMMEDIATE RELEASE Monday, March 11, 2014INTERPOL Stolen/Lost Travel Document Database
INTERPOL's Stolen/Lost Travel Document database (SLTD) is a searchable repository of information on passports, visas, and identity documents that have been reported stolen or lost, helping prevent the illicit international travel of criminals and terrorists. Currently containing over 40 million records, SLTD is available to police and border security authorities in 190 INTERPOL member countries through their respective National Central Bureaus (NCBs). INTERPOL's General Secretariat administers the database, which became operational in July 2002.
Designed as an investigative tool for law enforcement and border protection entities, SLTD allows authorized users to query specific passport numbers. The database returns information on suspect documents that includes the issuing country, document type, document number, date of theft/loss, and certain information related to the circumstances of the theft or loss.
A country's passport issuing authority, through its corresponding NCB, is the only entity authorized to enter and modify records in SLTD pertaining to the loss or theft of its national travel documents. The United States is one of the largest contributors to SLTD, with over 3 million records currently on file and updates occurring on a daily basis.
INTERPOL Washington, the U.S. National Central Bureau, manages U.S. participation in the SLTD program. Its related responsibilities include ensuring the timely and accurate entry of stolen/lost U.S. passport data into SLTD upon receipt from the U.S. Department of State, establishing and maintaining SLTD query access by U.S. law enforcement and border inspection authorities, and performing verification and resolution in cases involving foreign passports recorded in SLTD presented to U.S. Customs and Border Protection officers at all U.S. ports of entry. INTERPOL Washington also coordinates with its foreign counterparts to resolve any cases involving lost, stolen, and fraudulent U.S. passports presented at foreign border control points.
In May 2007, Congress, the Department of Homeland Security, and the Department of State formally recognized the importance of SLTD as a screening tool for all travelers seeking to enter the United States. International organizations such as the G8, the European Union, the Organization for Security and Co-operation in Europe and the United Nations Security Council have also endorsed the program. Presently all countries participating in the U.S. Visa Waiver Program report their stolen/lost passport data to INTERPOL for entry into SLTD, as set forth in the Implementing Recommendations for the 9/11 Commission Act of 2007, Pub. L. No. 110-53.
The United States currently screens the passports of all persons entering the country against SLTD. Additionally, the U.S. Department of State queries all U.S. visa applicants' passports against the database. In 2013, U.S. authorities conducted over 238 million SLTD queries, the majority of which came from the U.S. Department of Homeland Security.
Florida Hospital System Agrees to Pay the Government $85 Million <br /> to Settle Allegations of Improper Financial Relationships <br /> with Referring PhysiciansRead the Press Release
Halifax Hospital Medical Center and Halifax Staffing Inc. (Halifax), a hospital system based in the Daytona Beach, Fla., area, have agreed to pay $85 million to resolve allegations that they violated the False Claims Act by submitting claims to the Medicare program that violated the Physician Self-Referral Law, commonly known as the Stark Law, the Justice Department announced today.The Stark Law forbids a hospital from billing Medicare for certain services referred by physicians who have a financial relationship with the hospital. In this case, the government alleged that Halifax knowingly violated the Stark Law by executing contracts with six medical oncologists that provided an incentive bonus that improperly included the value of prescription drugs and tests that the oncologists ordered and Halifax billed to Medicare. The government also alleged that Halifax knowingly violated the Stark Law by paying three neurosurgeons more than the fair market value of their work.
“Financial arrangements that compensate physicians for referrals encourage physicians to make decisions based on financial gain rather than patient needs,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The Department of Justice is committed to preventing illegal financial relationships that undermine the integrity of our public health programs.”
In a Nov. 13, 2013, ruling, the U.S. District Court for the Middle District of Florida ruled that Halifax’s contracts with its medical oncologists violated the Stark Law. The case was set for trial on March 3, 2014, on the government’s remaining claims against Halifax when the parties reached this settlement.
“This settlement illustrates our firm commitment to pursue health care fraud," said U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Medical service providers should be motivated, first and foremost, by what is best for their patients, not their pocketbooks. Where necessary, we will continue to investigate and pursue these violations in our district.”
As part of the settlement announced today, Halifax also has agreed to enter into a Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG), which obligates Halifax to undertake substantial internal compliance reforms and to submit its federal health care program claims to independent review for the next five years.
“Patients deserve to know that recommendations are based on sound medical practice, not illegal financial relationships between providers,” said Inspector General for the U.S. Department of Health and Human Services Daniel R. Levinson. “Halifax now also is required to hire a legal reviewer to monitor provider arrangements and an additional compliance expert to assist the board in fulfilling its oversight obligations. Both of these independent reviewers will submit regular reports to my agency.”
The settlement announced today stems from a whistleblower complaint filed by an employee of Halifax Hospital, Elin Baklid-Kunz, pursuant to the qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the government and to share in the proceeds of the suit. The Act also permits the government to intervene and take over the lawsuit, as it did in this case as to some of Baklid-Kunz’s allegations. Baklid-Kunz will receive $20.8 million of the settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation and litigation was conducted by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida and HHS-OIG. The claims settled by this agreement are allegations only, and there has been no determination of liability, except as determined by the court’s Nov. 13, 2013, ruling.
The lawsuit is captioned United States ex rel. Baklid-Kunz v. Halifax Hospital Medical Center, et al., No. 09-cv-1002 (M.D. Fla.).
Federal Inmate Pleads Guilty <br /> to Murder of United States Correctional OfficerRead the Press Release
A federal inmate pleaded guilty today for the murder of United States Correctional Officer Jose Rivera, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Benjamin Wagner for the Eastern District of California.
James Ninete Leon Guerrero, 48, of Guam, pleaded guilty before U.S. District Judge Phillip Pro to one count of murder by a federal prisoner serving a life sentence. According to court documents, Guerrero aided and abetted co-defendant Jose Cabrera Sablan in the stabbing death of Officer Rivera.
Court documents allege that on June 20, 2008, as Officer Rivera was on duty, conducting his daily count in the United States Penitentiary in Atwater, Calif., Sablan attacked him with an eight-inch homemade shank. Officer Rivera tried to flee, but he was knocked backwards by Sablan and tackled by Guerrero. Guerrero held Officer Rivera down as Sablan stabbed him with the shank more than 20 times. Officer Rivera was 22 years old at the time of his death and was a United States Navy veteran.
Sablan and Guerrero were indicted for murder on Aug. 14, 2008. As a result of Guerrero’s plea, he faces a mandatory sentence of life in prison. His sentencing has been scheduled for May 30, 2014, in the Eastern District of California.
Sablan’s case is set for trial on April 6, 2015. He is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The investigation was conducted by the Bureau of Prisons and the FBI. This case is being prosecuted by Trial Attorney Bonnie Hannan of the Criminal Division’s Capital Case Section and Assistant U.S. Attorney Duce Rice of the Eastern District of California.Dominican National Sentenced to Serve 61 Months in Prison<br /> for Trafficking Identities of Puerto Rican U.S. CitizensRead the Press Release
A Dominican national was sentenced today for his leading role in trafficking the identities and corresponding identity documents of Puerto Rican U.S. citizens.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Deputy Director Daniel Ragsdale of U.S. Immigration and Customs Enforcement (ICE), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Director Gregory B. Starr of the U.S. State Department’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Wilfredo Blanco-Diaz, 40, formerly of Caguas, Puerto Rico, was sentenced to serve 61 months in prison and three years of supervised release by U.S. District Judge Gustavo A. Gelpí in the District of Puerto Rico. Blanco-Diaz was also ordered to forfeit $422,793 in proceeds and to be removed from the United States after the completion of his sentence.
On Sept. 24, 2013, Blanco-Diaz pleaded guilty to one count of conspiracy to commit identification fraud, one count of conspiracy to commit human smuggling for financial gain and one count of aggravated identity theft. To date, 53 individuals have been charged for their roles in the identity trafficking scheme. All 49 arrested defendants have pleaded guilty and 42 defendants have been sentenced.
According to court documents, individuals located in the Savarona area of Caguas obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set. The identity brokers in the United States ordered the identity documents from the document suppliers in Savarona on behalf of their customers by making coded telephone calls. The conspirators were charged with using text messages, money transfer services and express, priority or regular U.S. mail to complete their illicit transactions.
The court documents indicate that some of the conspirators assumed a Puerto Rican identity themselves and used that identity in connection with the trafficking operation. Their customers generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.
Blanco-Diaz was a supplier of Puerto Rican identity documents who operated in Caguas and provided Puerto Rican identities to brokers in Florida, Nebraska, North Carolina and Virginia, knowing that the identities would be sold to undocumented aliens who would then pose as U.S. citizens. Blanco-Diaz admitted that he was a manager and supervisor in the conspiracy.
Various identity brokers were operating in Rockford, DeKalb and Aurora, Ill.; Seymour, Columbus and Indianapolis, Ind.; Hartford, Conn.; Clewiston, Fla.; Lilburn and Norcross, Ga.; Salisbury, Md.; Columbus and Fairfield, Ohio; Dorchester, Lawrence, Salem and Worcester, Mass.; Grand Rapids, Mich.; Nebraska City, Neb.; Elizabeth, N.J.; Burlington and Hickory, N.C.; Hazelton and Philadelphia, Pa.; Houston; Abingdon and Albertville, Ala.; and Providence, R.I.
The charges are the result of Operation Island Express, an ongoing, nationally coordinated investigation led by the ICE Homeland Security Investigations’ (ICE-HSI) Chicago Office and USPIS, DSS and IRS-CI offices in Chicago, in coordination with the ICE-HSI San Juan Office and the DSS Resident Office in Puerto Rico. The Illinois Secretary of State Police; Elgin, Ill., Police Department; Seymour, Ind., Police Department; and Indiana State Police provided substantial assistance. The ICE-HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center (IOC-2) as well as various ICE, USPIS, DSS and IRS-CI offices around the country provided invaluable support.
The case is being prosecuted by Trial Attorneys James S. Yoon, Hope S. Olds, Courtney B. Schaefer and Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section, with the assistance of the Criminal Division’s Asset Forfeiture and Money Laundering Section and the support of the U.S. Attorney’s Office for the District of Puerto Rico. The U.S. Attorney’s Offices in the Northern District of Illinois, Southern District of Indiana, District of Connecticut, District of Massachusetts, District of Nebraska, Middle District of North Carolina, Southern District of Ohio, Middle District of Pennsylvania, District of Rhode Island, Southern District of Texas and Western District of Virginia provided substantial assistance.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html . Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline . Anyone who may have information about particular crimes in this case should also report them to the ICE tip line or website.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft . Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html ; www.ssa.gov/pubs/10064.html ; www.fbi.gov/about-us/investigate/cyber/identity_theft ; and www.irs.gov/privacy/article/0,,id=186436,00.html .Two Former Officers at Roxbury Correctional Institution Sentenced for Conspiring to Assault an InmateRead the Press Release
Lanny Harris, a former sergeant at Roxbury Correctional Institution (RCI) in Hagerstown, Md., and Philip Mayo, a former correctional officer at RCI, were sentenced today for conspiring with other RCI officers on March 8-9, 2008, to assault an inmate at the prison, identified as K.D.
Both Mayo and Harris previously pleaded guilty to conspiring to assault K.D. during the midnight shift (11 p.m. to 7 a.m.). Mayo and Harris cooperated with authorities during the federal investigation and testified for the prosecution at the trial of former RCI officer James Kalbflesh, who was convicted for his role in the assaults on K.D. and the subsequent coverup. U.S. District Judge James K. Bredar sentenced Harris and Mayo to each serve 30 months in prison.
During their testimony at Kalbflesh’s trial and in court documents filed in connection with their respective guilty pleas, Harris and Mayo each admitted that they met with other officers at RCI during the midnight shift and agreed to assault K.D. in retaliation for a prior incident involving K.D. and another officer. Harris, Mayo and two other correctional officers entered K.D.’s cell in order to assault the inmate, and the officers then went through with their plan and assaulted K.D.
“Every person in America has the right to be free from cruel and unusual punishment,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “To ensure that this right is protected, the Justice Department will continue to vigorously prosecute correctional officers who violate the rights of inmates.”
To date, 16 current or former officers at RCI have been convicted in connection with a series of assaults that K.D. suffered on March 8-9, 2008. There are 12 former RCI officers still awaiting sentencing before Judge Bredar, and two who were convicted in state court have already been sentenced.
The case was investigated by the FBI’s Frederick Resident Agency and prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division, with the help of Assistant U.S. Attorney Michael Cunningham for the District of Maryland.
Justice Department Files Lawsuit to Shut Down Chicago Tax Preparation BusinessRead the Press Release
The United States has sued The Tax Helper Corp, a tax preparation business with a store located in Chicago, and seeks to permanently bar the company and its alleged co-owner, Johnnie Pernell Jr., from preparing federal tax returns for others, the Justice Department announced today.
According to the complaint, Pernell Jr. prepared tax returns that falsely claimed deductions for fake business expenses and phony education expenses. One example described in the complaint details how Pernell Jr. allegedly prepared a tax return that improperly claimed a fake electrical business for one customer – reporting no income from the electrical business, but more than $24,000 in bogus losses. The customer, according to the complaint, informed the Internal Revenue Service (IRS) that he did not own an electrical business, had not provided any documents to Pernell Jr. to support the expenses that were claimed and had no idea how Pernell Jr. had determined the amount of expenses reported on his return.
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.
INTERPOL Washington and the U.S. Department of State to Host International Workshop on Human SmugglingRead the Press Release
USDOJ: INTERPOL Washington: Updates
Department of Justice
INTERPOL Washington FOR IMMEDIATE RELEASE Monday, March 10, 2014INTERPOL Washington and the U.S. Department of State to Host International Workshop on Human Smuggling
WASHINGTON - INTERPOL Washington (U.S. National Central Bureau) and the U.S. Department of State, Bureau of International Narcotics and Law Enforcement (INL), will conduct a “Workshop on Investigations and Prosecutions of Human Smuggling in the Americas” March 11th through March 13th at the International Law Enforcement Academy in San Salvador.
Ambassador Adam Blackwell, the Secretary of Multidimensional Security at the Organization of American States (OAS) in Washington, D.C., will deliver the keynote address at the opening ceremony.
The two and one-half-day event aims to provide a venue for representatives from various agencies responsible for investigating and prosecuting the crime of human smuggling to network, share best practices, and discuss the related criminal justice gaps and capacity-building efforts in the Americas region.
Approximately 30 participants from 18 countries are expected to attend, to include senior law enforcement and prosecutorial officials responsible for migrant smuggling and human trafficking, international legal experts, along with representatives from INTERPOL Headquarters, the United Nations Office on Drugs and Crime, and the Organization of American States.
French Citizen Pleads Guilty to Obstructing Criminal Investigation into Alleged Bribes Paid to Win Mining Rights in the Republic of GuineaRead the Press Release
Frederic Cilins, 51, a French citizen, pleaded guilty today in the Southern District of New York to obstructing a federal criminal investigation into whether a mining company paid bribes to win lucrative mining rights in the Republic of Guinea.
Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Preet Bharara, the U.S. Attorney for the Southern District of New York; and George Venizelos, the Assistant Director in Charge of the FBI’s New York Field Office, made the announcement.
Cilins pleaded guilty to a one-count superseding information filed today, which alleges that Cilins agreed to pay money to induce a witness to destroy, or provide to him for destruction, documents sought by the FBI. According to the superseding information, those documents related to allegations concerning the payment of bribes to obtain mining concessions in the Simandou region of the Republic of Guinea.
According to publicly filed documents, Cilins allegedly attempted to obstruct an ongoing federal grand jury investigation concerning potential violations of the Foreign Corrupt Practices Act and laws proscribing money laundering. Court documents state the federal grand jury was investigating whether a particular mining company and its affiliates – on whose behalf Cilins had been working – transferred into the United States funds in furtherance of a scheme to obtain and retain valuable mining concessions in the Republic of Guinea’s Simandou region. During monitored and recorded phone calls and face-to-face meetings, Cilins allegedly agreed to pay substantial sums of money to induce a witness to the bribery scheme to turn over documents to Cilins for destruction, which Cilins knew had been requested by the FBI and needed to be produced before a federal grand jury. Court documents also allege that Cilins sought to induce the witness to sign an affidavit containing numerous false statements regarding matters under investigation by the grand jury.
Court documents allege that the documents Cilins sought to destroy included original copies of contracts between the mining company and its affiliates and the former wife of a now-deceased Guinean government official, who at the relevant time held an office in Guinea that allowed him to influence the award of mining concessions. The contracts allegedly related to a scheme by which the mining company and its affiliates offered the wife of the Guinean official millions of dollars, which were to be distributed to the official’s wife as well as ministers or senior officials of Guinea’s government whose authority might be needed to secure the mining rights.
According to court documents, the official’s wife incorporated a company in 2008 that agreed to take all necessary steps to secure the valuable mining rights for the mining company’s subsidiary. That same contract stipulated that $2 million was to be transferred to the official’s wife’s company and an additional sum was to be “distributed among persons of good will who may have contributed to facilitating the granting of” the valuable mining rights. According to the complaint, in 2008, the mining company and its affiliates also agreed to give 5 percent of its ownership of particular mining areas in Guinea to the official’s wife.
The case is being investigated by the FBI. The case is being prosecuted by Trial Attorney Tarek Helou of the Criminal Division’s Fraud Section and Assistant United States Attorney Elisha J. Kobre of the Southern District of New York. The Justice Department’s Office of International Affairs and Office of Enforcement Operations also assisted in the investigation.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .Attorney General Holder, Calling Rise in Heroin Overdoses<br /> ‘Urgent Public Health Crisis,’ Vows Mix of Enforcement,<br /> TreatmentRead the Press Release
Calling the rise in overdose deaths from heroin and other prescription pain-killers an “urgent public health crisis,” Attorney General Eric Holder vowed Monday that the Justice Department would combat the epidemic through a mix of enforcement and treatment efforts. As an added step, the Attorney General is also encouraging law enforcement agencies to train and equip their personnel with the life-saving, overdose-reversal drug known as naloxone.
Speaking in a video message posted on the Justice Department’s website, Holder noted that between 2006 and 2010, heroin overdose deaths increased by 45 percent.
“When confronting the problem of substance abuse, it makes sense to focus attention on the most dangerous types of drugs. And right now, few substances are more lethal than prescription opiates and heroin,” Holder said.
Relatedly, Holder is urging first responders to carry the drug known as naloxone. When administered quickly and effectively, naloxone immediately restores breathing to a victim in the throes of a heroin or opioid overdose. Seventeen states and the District of Columbia have amended their laws to increase access to naloxone, resulting in over 10,000 overdose reversals since 2001. Used in concert with “Good Samaritan” laws, which grant immunity from criminal prosecution to those seeking medical help for someone experiencing an overdose, naxolone can save lives.
The Attorney General also urged the public to view the award-winning documentary, “The Opiate Effect,” to learn more about the realities, and the dangers, of opiate abuse. The video is available for free online HERE.The complete text of the Attorney General’s video message is below:
“When confronting the problem of substance abuse, it makes sense to focus attention on the most dangerous types of drugs. And right now, few substances are more lethal than prescription opiates and heroin.
“Addiction to heroin and other opiates – including certain prescription pain-killers – is impacting the lives of Americans in every state, in every region, and from every background and walk of life – and all too often, with deadly results. Between 2006 and 2010, heroin overdose deaths increased by 45 percent. Scientific studies, federal, state and local investigations, addiction treatment providers, and victims reveal that the cycle of heroin abuse commonly begins with prescription opiate abuse. The transition to—and increase in—heroin abuse is a sad but not unpredictable symptom of the significant increase in prescription drug abuse we’ve seen over the past decade.
“It’s clear that opiate addiction is an urgent – and growing – public health crisis. And that’s why Justice Department officials, including the DEA, and other key federal, state, and local leaders, are fighting back aggressively.
“Confronting this crisis will require a combination of enforcement and treatment. The Justice Department is committed to both.
“On the enforcement side, we’re doing more than ever to keep illicit drugs off the streets – and to bring violent traffickers to justice. With DEA as our lead agency, we have adopted a strategy to attack all levels of the supply chain to prevent pharmaceutical controlled substances from getting into the hands of non-medical users. DEA proactively investigates the diversion of controlled substances at all levels of the supply chain. This includes practitioners that illegally dispense prescriptions, pharmacists that fill those prescriptions, and distributors that send controlled substances downstream without due diligence efforts. DEA also uses its regulatory authority to review and investigate new pharmacy applications in targeted areas to identify and prevent storefront drug traffickers from obtaining DEA registrations. And they’re also going after “pill mills.”
“Since 2011, DEA has opened more than 4,500 investigations related to heroin. They’re on track to open many more. And as a result of these aggressive enforcement efforts, the amount of heroin seized along America’s southwest border increased by more than 320 percent between 2008 and 2013.
“Of course, enforcement alone won’t solve the problem. That’s why we are enlisting a variety of partners – including doctors, educators, community leaders, and police officials – to increase our support for education, prevention, and treatment. DEA engages in widespread education of pharmacists, doctors, and other health practitioners in the identification and prevention of controlled substance diversion during the healthcare delivery process. In the Northern District of Ohio, for example, the U.S. Attorney convened a summit at the Cleveland Clinic, bringing together health and law enforcement professionals to address that area’s 400-percent rise in heroin-related deaths. And nationwide, the Justice Department is supporting more than 2,600 specialty courts that connect over 120,000 people convicted of drug-related offenses with the services they need to avoid future drug use and rejoin their communities.
“We can, and should, be proud of these results. But more can be done. And frequently, the most effective efforts are those that begin at home. Parents and families can help raise awareness about the devastating consequences of opiate abuse. And Americans like the Gates family of Skowhegan, Maine, are showing the way. Their son, Will, was a bright young student at the University of Vermont who overdosed on heroin and lost his life – five years ago this month.
“During their grief, Will’s parents and his brother have transformed their story of heartbreaking loss into a powerful force for change. Working with the U.S. Attorney’s Office in Vermont, they created an award-winning documentary – called “The Opiate Effect” – to educate people about the realities, and the dangers, of opiate abuse. Fifty thousand people have already watched this video for free online. And I urge you to do the same – because it’s only by working together that we can confront this crisis, strengthen our communities, and save lives.”
The full video is available at http://www.justice.gov/agwa.php
Albuquerque Man Charged with Federal Hate Crime Related to Anti-Semitic Threats Against BusinesswomanRead the Press Release
The Department of Justice announced that this morning John W. Ng, 58, of Albuquerque, N.M., made his initial appearance in federal court on a criminal complaint charging him with a hate crime offense. This charge is related to anti-Semitic threats Ng made against a Jewish woman who owns and operates the Nosh Jewish Delicatessen and Bakery in Albuquerque.
Ng was arrested by the FBI on March 7, 2014, based on a criminal complaint alleging that he interfered with the victim’s federally protected rights by threatening her and interfering with her business because of her religion. According to the criminal complaint, between Jan. 22, 2014, and Feb. 8, 2014, Ng allegedly posted threatening anti-Semitic notes on and in the vicinity of the victim’s business.
A criminal complaint merely establishes probable cause, and Ng is presumed innocent unless proven guilty. If convicted on the offense charged in the criminal complaint, Ng faces a maximum statutory penalty of one year in prison.
This matter was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Mark T. Baker of the U.S. Attorney’s Office for the District of New Mexico and Trial Attorney AeJean Cha of the U.S. Department of Justice’s Civil Rights Division.
Two Ocean Shipping Companies to Pay $3.4 Million to Settle Claims<br /> of Price Fixing Government Cargo Transportation ContractsRead the Press Release
Sea Star Line LLC and Horizon Lines LLC have agreed to resolve allegations that they violated the False Claims Act by fixing the price of government cargo transportation contracts between the continental United States and Puerto Rico, the Department of Justice announced today. Under the settlement agreements, Sea Star Line has agreed to pay $1.9 million, and Horizon Lines has agreed to pay $1.5 million.“Today’s civil settlements demonstrate our continuing vigilance to ensure that those doing business with the government do not engage in anticompetitive conduct,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Government contractors who seek to profit at the expense of taxpayers will face serious consequences.”
The government alleged that former executives of the defendant ocean shippers used personal email accounts to communicate confidential bidding information, thereby enabling each of the shippers to know the transportation rates that its competitor intended to submit to federal agencies for specific routes. This information allowed the shippers to allocate specific routes between themselves at predetermined rates. Among the contracts affected were U.S. Postal Service contracts to transport mail and Department of Agriculture contracts to ship food. Both Sea Star Line and Horizon Lines previously pleaded guilty, in related criminal proceedings, to anticompetitive conduct in violation of the Sherman Act.
“Postal Service contractors must understand and know that actions that undermine the contracting process, such as conspiring to suppress and eliminate competition, will not be tolerated and will be aggressively investigated,” said Tom Frost, Special Agent in Charge of the Major Fraud Investigations Division (MFID) with the Postal Service Office of Inspector General. “MFID will continue to work with DOJ, both criminally and civilly, to bring those individuals and companies to justice.”
The civil settlements resolve allegations in a lawsuit filed in federal court in Jacksonville, Fla., by former Sea Star Line executive William B. Stallings. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Stallings will receive $512,719 of the recovered funds.
The settlements were the result of a coordinated effort by the Civil Division of the Department of Justice and the U.S. Postal Service Office of Inspector General.
The case is captioned United States ex rel. Stallings v. Sea Star Line LLC, et al., Case No. 3:13-cv-152-J-12JBT (M.D. Fla.). The claims resolved by the settlements are allegations only, except to the extent the conduct was admitted as part of the defendants’ prior guilty pleas, and there has been no determination of liability.
Two Citizens of Malaysia Sentenced in U.S. District CourtRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendant KUAN SIONG TAN, age 23, and Defendant CHOON BOON TAN, age 27, both citizens of Malaysia, were sentenced on March 5, 2014, in the District Court of Guam, for their convictions of aggravated identity theft. Each defendant was sentenced to a 24-month term of imprisonment to be followed by three years of supervised release. They were also ordered to pay restitution to the victims of their criminal conduct in the amount of $634.42 for CHOON BOON TAN and $1,961.43 for KUAN SIONG TAN.
On January 8, 2013, KUAN SIONG TAN and CHOON BOON TAN entered Guam from Malaysia. A secondary inspection by the U.S. Customs and Border Protection agency was conducted, and the defendants were found with numerous counterfeit access devices or credit cards. Prior to their arrival into Guam, the defendants used counterfeit access devices or credit cards to fraudulently obtain goods and services from a hotel and merchants in Kuala Lumpur, Malaysia, and Bangkok, Thailand. KUAN SIONG TAN possessed 47 counterfeit cards while CHOON BOON TAN possessed 39 such cards. Some of the credit cards were encoded with stolen credit card account information of account holders in the mainland United States with institutions such as Chase Bank, Bank of America, and Capital One Bank. KUAN SIONG TAN and CHOON BOON TAN were arrested on January 8, 2013, by agents with the Homeland Security Investigations and the U.S. Secret Service.
U.S. Attorney Alicia A.G. Limtiaco stated, “Identity theft and related white collar and financial fraud crimes victimize individuals, financial institutions and merchants. The U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands and the Department of Justice are committed to combating identity theft and other white collar and financial fraud crimes. We will continue to dedicate federal resources effectively to prevent, investigate and prosecute the unlawful use of identifying information. Federal and local law enforcement are committed to protecting our community and consumers against theft, fraud and other related criminal activity.”
This case was investigated by special agents from the Department of Homeland Security/Homeland Security Investigations and U.S. Secret Service and prosecuted by Assistant U.S. Attorney Stephen F. Leon Guerrero.The Executive Office for Immigration Review to Host Stakeholder Meeting on Recognition and Accreditation ProgramRead the Press Release
SUMMARY: The Executive Office for Immigration Review (EOIR) invites interested parties to participate in a meeting providing a general overview of EOIR's recognition and accreditation program.
DATE: Friday, March 21, 2014, at 2 p.m.
MEETING LOCATION: 5107 Leesburg Pike, Suite 1800, Falls Church, VA.
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 March 20, 2014. In-person attendance will be limited to the first forty (40) individuals to RSVP. Those who are unable to attend in person will be able to participate via teleconference and to view meeting slides via the Internet during the meeting. Call-in and Web access information will be available 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 Tax Preparation Business in Washington, D.C., Indicted for Conspiring to Defraud the Internal Revenue Service and Preparing False Individual Income Tax ReturnsRead the Press Release
On Feb. 26, 2014, a federal grand jury sitting in the District of Columbia returned a 17 count indictment charging Sherri Davis, previous owner and operator of 2FT Fast Facts Tax Service, a tax return preparation business located in Washington, D.C., for conspiring to defraud the Internal Revenue Service (IRS), aiding and assisting in the preparation of false individual income tax returns and filing false individual income tax returns, the Justice Department and IRS announced following the unsealing of Davis’ indictment today.
According to the indictment, from 2006 through 2011, Davis conspired with others to defraud the IRS by preparing and filing false income tax returns that contained fraudulent deductions, expenses, losses and credits to which 2FT clients were not entitled, thereby generating fraudulent income tax refunds. Davis instructed co-conspirator LaDonna Davis to falsify tax documents for 2FT clients in order to reduce their taxable income and to get a larger refund than what the client was entitled to receive. Davis also provided 2FT clients with false documentation to support fraudulently claimed charitable contributions and mileage expenses on their individual income tax returns for use in a potential or pending audit.
The indictment also alleges that Davis filed false 2007 through 2009 individual income tax returns for herself, which underreported 2FT’s gross receipts and falsely claimed business losses for 2FT. Davis faces a statutory maximum potential sentence of 53 years in prison and a fine of up to $4,250,000.
The case is being prosecuted by Trial Attorneys Jessica Moran and Tiwana Fleming of the Justice Department’s Tax Division. Additional information about the division and its enforcement efforts may be found at its website .
Leader of Identity Theft Ring Sentenced <br /> for Stealing More Than 600 Identities <br /> and Causing More Than $1 Million in LossesRead the Press Release
The leader of an identity theft ring that stole more than 600 identities from U.S. government employees and others was sentenced today to serve 12 years in prison, followed by three years of supervised release.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting United States Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Kathy A. Michalko of the United States Secret Service’s Washington Field Office and Chief Edwin C. Roessler Jr. of the Fairfax County Police Department made the announcement.
Jenaro Blalock, 31, of Clinton, Md., pleaded guilty on Oct. 29, 2013, to access device fraud and aggravated identity theft and was sentenced by United States District Judge Claude M. Hilton. Blalock was also ordered to pay full restitution to victims.
According to court documents, between June 2011 and July 2013, Blalock and co-leader Christopher Bush recruited women with access to identity information through their employers to steal more than 600 identities, primarily belonging to employees of the U.S. Department of State, the U.S. Department of Defense and the U.S. Agency for International Development. Blalock provided blank driver’s licenses so that Bush could make fraudulent driver’s licenses bearing the victims’ real names, addresses and dates of birth. Blalock also made fraudulent credit cards bearing victims’ names. Members of the identity theft ring, including Blalock, used those fraudulent driver’s licenses and victims’ social security numbers to open instant credit lines at retailers and obtain rental cars, which were frequently sold on the black market with altered vehicle identification numbers. According to information provided at sentencing, the identity theft ring caused victim losses of between $1 million and $2.5 million.
On Jan. 17, 2014, Bush was sentenced to serve 10 years in prison for his role in the scheme.
This case was investigated by the United States Secret Service and the Fairfax County Police Department, with assistance from the City of Fairfax Police Department, Prince George’s County Washington Area Vehicle Enforcement, Prince George’s County Financial Crimes Section, the Metropolitan Washington Airport Authority, the Delaware State Police, the Maryland State Police, the D.C. Metropolitan Police Department, the U.S. Postal Inspection Service, the Office of the Inspector General of the U.S. Department of Agriculture and the Office of the Inspector General of the U.S. Department of State .
The case was prosecuted by Trial Attorney Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia.Justice Department Sues to Stop California Tax Return PreparersRead the Press Release
The United States filed a civil complaint asking a federal court in Fresno, Calif., to enjoin Ken Mendoza and Alice Mendoza from preparing federal tax returns for others, the Justice Department announced today. The complaint alleges that the Mendozas frequently prepare tax returns for individuals claiming refunds from the federal government that are not deserved. According to the complaint, since 2010, the Mendozas have prepared over 600 tax returns for individuals in the Fresno area.
According to the complaint, the Mendozas improperly understate their customers’ federal tax liabilities by fabricating business expenses, claiming false or inflated credits, particularly educational credits, and deducting customers’ personal expenses that are not legally deductible. 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.
In addition, the complaint seeks to enjoin anyone acting in concert with the Mendozas from preparing or filing federal tax returns; to prohibit the Mendozas from requesting or directing the preparation of federal tax returns for others; to require the Mendozas, within 30 days of entry of an injunction issued in this case, to contact all persons for whom they prepared a federal tax return since Jan. 1, 2008, and to inform all such persons of the permanent injunction entered against them; to require the Mendozas to provide a list of all such persons to the United States; to allow the United States to monitor the Mendozas’s compliance with any such injunction; and to request that the court retain jurisdiction over this case to enforce any injunction entered against the Mendozas.
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.
Related Materials:
United States v. Ken Mendoza, etc., et al.
Complaint for Permanent Injunction and Other Equitable ReliefEl Departamento de Justicia Presenta una Demanda para Prohibir a Preparadores de Declaraciones de Impuestos de CaliforniaRead the Press Release
WASHINGTON – Estados Unidos inició una demanda civil en la que pidió a un juzgado federal de Fresno, California, que prohibiera a Ken Mendoza y Alice Mendoza preparar declaraciones de impuestos federales para terceros, anunció hoy el Departamento de Justicia. La demanda alega que los Mendoza solían preparar declaraciones de impuestos para terceros, en las que pedían al gobierno federal reintegros indebidos. De acuerdo con la demanda, los Mendoza prepararon desde 2010 más de 600 declaraciones de impuestos para personas del área de Fresno.
De acuerdo con la demanda, los Mendoza declaran indebidamente las obligaciones de impuestos federales de sus clientes al inventar gastos de negocios, pedir créditos falsos o inflados, especialmente créditos educativos, y deducir gastos personales de los clientes que no son legalmente deducibles. En total, la demanda alega que el Tesoro de EE.UU. pudo haber perdido debido a las actividades de los Mendoza hasta 2.8 millones de dólares para los años fiscales 2010 a 2011.
Además, la demanda busca prohibir a cualquiera que actúe en conjunto con los Mendoza preparar o presentar declaraciones de impuestos federales; prohibir a los Mendoza solicitar o instruir la preparación de declaraciones de impuestos federales para terceros; que se les exija a los Mendoza, en el plazo de 30 días a partir de la emisión de un interdicto en este caso, que se comuniquen con todas las personas para quienes prepararon una declaración de impuestos federales desde el 1° de enero de 2008, y que informen a todas dichas personas del interdicto permanente en su contra; que se les exija a los Mendoza que provean a Estados Unidos una lista de todas dichas personas; que se le permita a Estados Unidos controlar el cumplimiento de dicho interdicto por parte de los Mendoza; y solicita que el tribunal retenga jurisdicción sobre este caso para hacer valer cualquier interdicto emitido contra los Mendoza.
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.
Couple Sentenced in U.S. District CourtRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendant John A. Cruz, age 47, and Defendant Mae Tedtaotao Cruz, age 45, husband and wife, and residents of Yona, were sentenced on March 6, 2014, by Chief Judge Frances Tydingco-Gatewood, in the District Court of Guam. John A. Cruz received 78 months for his conviction of conspiracy to distribute more than 50 grams of methamphetamine and an additional five years for using, carrying or possessing a firearm during a drug trafficking crime. The five years are consecutive to the conspiracy charge. John A. Cruz was assessed a $200 special assessment fee, 400 hours community service and five years supervised release. Mae Tedtaitao Cruz was sentenced to 27 months imprisonment on the conspiracy charge, 400 hours community service, a $100 special assessment fee and five years supervised release.
On October 27, 2011, postal inspectors intercepted an Express Mail package and searched it pursuant to a federal search warrant; the package contained 86 grams of 91.1% pure ice. Agents secured a warrant to search the defendants’ residence, where they were arrested. Agents seized, among other things, $38,000 cash, five firearms (all registered); a Toyota Forerunner, an FJ Cruiser and two all-terrain vehicles. They later seized a Lexus SUV. All these items have been forfeited.This case was investigated by special agents from the U.S. Postal Inspection Service (USPIS); Drug Enforcement Administration (DEA); Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Department of Homeland Security/Homeland Security Investigations (HSI); and officers from the Guam Police Department and Guam Customs and Quarantine Agency. The case was prosecuted by Assistant U.S. Attorney Clyde Lemons.
Two Former Puerto Rico Law Enforcement Officers Sentenced for Scheme to Smuggle Heroin to InmatesRead the Press Release
A former state marshal and a correctional officer in Puerto Rico were sentenced today for attempting to smuggle heroin to inmates in exchange for payment, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
Joel Torres-Velazquez, 49, of Guánica, Puerto Rico, was sentenced to serve 37 months in prison, followed by three years of supervised release, by U.S. District Judge Francisco A. Besosa of the District of Puerto Rico. He pleaded guilty on Nov. 6, 2013, to a one-count indictment charging him with attempt to distribute a controlled substance.
Jessica Moreno-Alicea, 39, of Ponce, Puerto Rico, was sentenced to serve 37 months in prison, followed by four years of supervised release, by U.S. District Judge Daniel R. Dominguez of the District of Puerto Rico. She pleaded guilty on Dec. 6, 2013, to a one-count indictment charging her with attempt to distribute a controlled substance.
Torres-Velazquez was paid $600 to deliver a package of heroin to an inmate at the Ponce Superior Court, where Torres-Velazquez worked as a state marshal. On March 30, 2011, Torres-Velazquez met with an undercover agent, who he believed was a drug dealer, and was given what he believed to be a package of heroin. He delivered the purported heroin to an inmate in the courthouse that same day.
Moreno was paid $800 to deliver a package of heroin to an inmate at the Ponce State Penitentiary, where Moreno worked as a correctional officer. On Feb. 3, 2011, Moreno met with an undercover agent, who she believed was a drug dealer, and was given what she believed to be heroin. She delivered the purported heroin to an inmate in the prison on Feb. 8, 2011.
The case was investigated by the FBI’s San Juan Division. The case was prosecuted by Assistant U.S. Attorney Hector Ramirez-Carbó of the District of Puerto Rico and Trial Attorney Menaka Kalaskar of the Criminal Division’s Public Integrity Section.Staten Island, N.Y., Tax Preparer Sentenced to Prison for Preparing False Tax ReturnsRead the Press Release
Ranti Azeez-Taiwo of Staten Island, N.Y., was sentenced to serve 18 months in prison to be followed by one year of supervised release, the Justice Department and Internal Revenue Service (IRS) announced today. Azeez-Taiwo was also ordered to pay $24,802 in restitution. On Sept. 30, 2013, a federal jury in the Eastern District of New York convicted Azeez-Taiwo of 16 counts of aiding or assisting in the preparation of false income tax returns for clients.
According to evidence introduced at trial, the defendant operated a tax preparation business called Lot Associates Inc., located in Staten Island. Evidence showed that the defendant aided, advised and prepared false individual income tax returns for clients during the 2006 through 2010 tax years. These false individual income tax returns claimed unreimbursed employee expenses and charitable donations that taxpayers testified the defendant claimed on their returns without the taxpayers’ knowledge. Several taxpayers testified they paid fines and interest to the IRS as a result of the false income tax returns Azeez-Taiwo had prepared and submitted to the IRS.
This case was investigated by IRS-Criminal Investigation and was prosecuted by Trial Attorneys Mark Kotila and Mark McDonald of the Tax Division.
Physician Pleads Guilty for Role <br /> in Detroit-Area Medicare Fraud SchemeRead the Press Release
A former Detroit-area physician pleaded guilty today for his role in an $11.5 million health care fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
Jose Mercado-Francis, 60, formerly of Brownstown Township, Mich., pleaded guilty before U.S. District Judge Nancy G. Edmunds in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.
According to court documents, Mercado-Francis admitted that, beginning in approximately September 2009 and continuing through February 2012, he held himself out as a licensed physician and purported to provide physician home services to Medicare beneficiaries, when actually his medical license had been revoked and he was not licensed to practice medicine in Michigan.
Court documents allege that Mercado-Francis operated his scheme out of a medical practice known as House Calls Physicians P.L.L.C., which was located in Allen Park, Mich., and owned by a co-conspirator. Mercado-Francis prepared medical documentation that licensed physicians signed as if they had provided services to Medicare beneficiaries, when, in fact, they had not. The services were then billed to Medicare as if the licensed physicians had performed them.
Court documents further allege that, between approximately May 2008 and October 2012, House Calls Physicians billed Medicare more than $11.5 million for the cost of physician home services. Of that amount, Dr. Mercado-Francis caused the submission of approximately $1.1 million in false and fraudulent physician services claims.
At sentencing, which will be scheduled at a later date, Mercado-Francis faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is being 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 Eastern District of Michigan. This case is being prosecuted by Trial Attorney Matthew C. Thuesen 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 more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, the HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Justice Department Enters Consent Decree with National Tax Preparer H&R Block Requiring Accessibility of Websites and Mobile Apps Under Americans with Disabilities ActRead the Press Release
Acting Assistant Attorney General Jocelyn Samuels of the Civil Rights Division and U.S. Attorney Carmen M. Ortiz of the District of Massachusetts announced today that they have entered into a consent decree with HRB Digital LLC and HRB Tax Group Inc., subsidiaries of H&R Block Inc., to remedy alleged violations of the Americans with Disabilities Act (ADA). The decree resolves the department’s allegations that individuals with disabilities are denied full and equal enjoyment of largely tax-preparation focused goods and services that are provided through H&R Block’s website and mobile applications. The decree has been filed with the U.S. District Court for the District of Massachusetts for the court’s approval.
On Dec. 11, 2013, the Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts filed a complaint in intervention in the lawsuit National Federal of the Blind (NFB) et al. v. HRB Digital LLC et al. to enforce Title III of the ADA. The decree resolves the complaints by the NFB, two individual plaintiffs and the United States filed in the District of Massachusetts.
H&R Block is one of the largest tax return preparers in the United States. It offers a wide range of services through its website, www.hrblock.com, and its mobile apps, including professional and do-it-yourself tax preparation, instructional videos, office location information, interactive live video conference and chat with tax professionals, online and in-store services and electronic tax-return filing.
The complaint alleged that H&R Block failed to code its website in a manner that would make it accessible to individuals who have vision, hearing and physical disabilities. As described in the complaint, individuals with disabilities use various assistive technologies to access the Internet, including screen reader software, refreshable Braille displays, keyboard navigation and captioning, among others that are not currently compatible with H&R Block’s website. These technologies have been widely used for decades. The recognized international industry standards for web accessibility, known as the Web Content Accessibility Guidelines (WCAG) 2.0, can be found online and are freely available to help companies ensure that individuals with disabilities can fully and equally enjoy their web-based goods and services.
“This landmark decree ensures that individuals with disabilities will have an equal opportunity to independently and conveniently obtain information and complete taxes as others do,” said Acting Assistant Attorney General Samuels. “H&R Block is to be commended for working with the NFB and the Justice Department in resolving to take such steps.”
“For those with disabilities, an inaccessible website puts them at a great disadvantage and further perpetuates a feeling of dependence and reliance on others,” said U.S. Attorney Ortiz. “With thoughtful and proper web design, businesses and organizations can have a great impact on the daily lives of people with disabilities who, like everyone else, seek to enjoy the benefits of technology.”
Under the terms of the five year decree, H&R Block’s website, tax filing utility and mobile apps will conform to the Level AA Success Criteria of the WCAG 2.0. According to the decree, the H&R Block website will be accessible for the start of the next tax filing term on Jan. 1, 2015, with additional accessibility deadlines over the following years of the decree. Additionally, HRB Digital and HRB Tax Group have agreed to: appoint a skilled web accessibility coordinator who will report to H&R Block’s enterprise Chief Information Officer; adopt a web accessibility policy; initiate training on accessible design for its web content personnel; evaluate employee and contractor performance based on successful web access programming; conduct regular automated and user group testing; and hire an approved outside consultant to prepare annual independent evaluations of Block’s online accessibility. H&R Block will also pay $45,000 to the two individual plaintiffs, and a $55,000 civil penalty.
An accessible version of the consent decree is available on the ADA website.
Former Owner of Florida Airline Fuel Supply Company Pleads Guilty <br /> in Scheme to Defraud Illinois-Based Ryan International AirlinesRead the Press Release
A former owner and operator of a Florida-based airline fuel supply service company pleaded guilty today to participating in a kickback scheme to defraud Illinois-based Ryan International Airlines, a charter airline company located in Rockford, Ill., the Department of Justice announced.
Sean E. Wagner, the former owner and operator of Aviation Fuel International Inc. (AFI), pleaded guilty in the U.S. District Court for the Southern District of Florida in West Palm Beach to one count of conspiracy to commit honest services wire fraud. On Aug. 13, 2013, a grand jury returned an indictment against Wagner and AFI, charging them for their roles in a conspiracy to defraud Ryan International Airlines. According to the indictment, Wagner and AFI made kickback payments to Wayne Kepple, a former vice president of ground operations for Ryan, in exchange for awarding business to AFI. According to court documents, from at least as early as December 2005 through at least August 2009, Wagner and others at AFI made kickback payments to Kepple totaling more than $200,000 in the form of checks, wire transfers, cash and gift cards. The charges against AFI were dismissed on Feb. 21, 2014.Ryan provided air passenger and cargo services for corporations, private individuals and the U.S. government – including the U.S. Department of Defense and the U.S. Department of Homeland Security.
“These types of kickback schemes subvert the competitive process and increase costs to American consumers,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division will vigorously prosecute individuals who defraud American taxpayers and businesses.”Wagner pleaded guilty to one count of conspiracy to commit honest services wire fraud. The count carries a maximum sentence of 20 years in prison and a $250,000 criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either amount is greater than the statutory maximum fine.
As a result of the ongoing investigation, four other individuals have pleaded guilty and have been ordered to serve sentences ranging from 16 to 87 months in prison and to pay more than $580,000 in restitution.
The investigation is being conducted by the Antitrust Division’s National Criminal Enforcement Section and the U.S. Department of Defense’s Office of Inspector General’s Defense Criminal Investigative Service, Southeast Field Office, headed by Special Agent in Charge John F. Khin, with assistance from the U.S. Attorney’s Office for the Southern District of Florida. Anyone with information concerning anticompetitive conduct in the airline charter services industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.htm.Former English Tutor Sentenced for Sexually Exploiting Children in China and the United StatesRead the Press Release
Hector Orjuela Jr., 47, was sentenced today to serve 30 years in prison, followed by a lifetime of supervised release, for molesting children under the age of 12 and producing child pornography, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Assistant Secretary of State for Diplomatic Security Gregory B. Starr.
Orjuela pleaded guilty on Oct. 3, 2013, before U.S. District Court Judge Ellen Segal Huvelle in the District of Columbia, to two counts of engaging in and attempting to engage in illicit sexual conduct in a foreign place and one count of producing child pornography.
According to court documents, Orjuela is a U.S. citizen who worked as an English teacher and tutor in Shanghai, China. In July 2012, Orjuela traveled to Maryland and molested a girl under the age of 12 and produced child pornography of the sexual abuse. In August 2012, Orjuela traveled to China and molested one girl and attempted to molest another, both of whom were under the age of 12 and residing in China at that time. Orjuela traveled back to the United States in early November 2012 and then returned to China later that month where he continued to molest the same two young girls.
This case is a result of investigative efforts led by the FBI Washington Field Office, with assistance from the FBI Beijing Legat Office; the U.S. Department of State’s Bureau of Diplomatic Security’s Regional Security Office in Shanghai; the Shanghai Public Security Bureau’s International Cooperation Division; the Shanghai Criminal Investigation Division and the Shanghai Exit and Entry Bureau. This case was prosecuted by Trial Attorneys Sarah Chang and Mi Yung Park of the Criminal Division’s Child Exploitation and Obscenity Section, with assistance from the U.S. Attorney’s Offices for the District of Columbia and the District of Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.U.S. Freezes More Than $458 Million Stolen by Former Nigerian Dictator in Largest Kleptocracy Forfeiture Action Ever Brought in the U.S.Read the Press Release
The Department of Justice has frozen more than $458 million in corruption proceeds hidden in bank accounts around the world by former Nigerian dictator Sani Abacha and conspirators. A civil forfeiture complaint unsealed today in the United States District Court in the District of Columbia seeks recovery of more than $550 million in connection with the largest kleptocracy forfeiture action brought in the department’s history.
The restraint of funds announced today includes approximately $313 million in two bank accounts in the Bailiwick of Jersey and $145 million in two bank accounts in France. In addition, four investment portfolios and three bank accounts in the United Kingdom with an expected value of at least $100 million have also been restrained, but the exact amounts in the accounts will be determined at a later date.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
“General Abacha was one of the most notorious kleptocrats in memory, who embezzled billions from the people of Nigeria while millions lived in poverty,” said Acting Assistant Attorney General Raman. “This is the largest civil forfeiture action to recover the proceeds of foreign official corruption ever brought by the department. Through our Kleptocracy Initiative, we are seizing the assets of foreign leaders who steal funds that properly belong to the citizens they serve. Today’s action sends a clear message: we are determined and equipped to confiscate the ill-gotten riches of corrupt leaders who drain the resources of their countries.”
“We will not let the U.S. banking system be a tool for dictators to hide their criminal proceeds,” said Assistant Director in Charge Parlave. “This action demonstrates the FBI’s ability to combat international corruption and money laundering by seizing the assets of those involved. I want to thank the special agents, financial analysts and prosecutors whose hard work over the years resulted in today’s announcement.”
The over $458 million in frozen funds and the additional assets named in the complaint represent the proceeds of corruption during and after the military regime of General Abacha, who assumed the office of the president of the Federal Republic of Nigeria through a military coup on Nov. 17, 1993, and held that position until his death on June 8, 1998. The complaint alleges that General Abacha, his son Mohammed Sani Abacha, their associate Abubakar Atiku Bagudu and others embezzled, misappropriated and extorted billions from the government of Nigeria and others, then laundered their criminal proceeds through the purchase of bonds backed by the United States using U.S. financial institutions.
As alleged in the complaint, General Abacha and others systematically embezzled billions of dollars in public funds from the Central Bank of Nigeria on the false pretense that the funds were necessary for national security. The conspirators withdrew the funds in cash and then moved the money overseas through U.S. financial institutions. General Abacha and his finance minister also allegedly caused the Government of Nigeria to purchase Nigerian government bonds at vastly inflated prices from a company controlled by Bagudu and Mohammed Abacha, generating an illegal windfall of more than $282 million. In addition, General Abacha and his associates allegedly extorted more than $11 million from a French company and its Nigerian affiliate in connection with payments on government contracts. Funds involved in each of these schemes were allegedly laundered through the United States.
The complaint seeks to forfeit bank accounts and investment portfolios with funds located in Bailiwick of Jersey, France and the United Kingdom. On Feb. 25 and 26, 2014, U.S. arrest warrants for the assets were enforced in Jersey and France though mutual legal assistance requests and in the United Kingdom through litigation brought pursuant to the U.K. Civil Jurisdiction and Judgments Act. The complaint also seeks to forfeit five corporate entities registered in the British Virgin Islands.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
The investigation was conducted by the FBI. The case is being prosecuted by Trial Attorney Elizabeth Aloi and Assistant Deputy Chief Daniel Claman of the Criminal Division’s Asset Forfeiture and Money Laundering Section, with substantial support from the Criminal Division’s Office of International Affairs. The department appreciates the extensive assistance provided by the Governments of Jersey, France and the United Kingdom in this investigation.Related Materials:
Abacha Complaint
Two Individuals and Company Found Guilty of Conspiracy to Sell Trade Secrets to Chinese CompaniesRead the Press Release
A federal jury in San Francisco has found two individuals and one company guilty of economic espionage, theft of trade secrets, bankruptcy fraud, tax evasion, and obstruction of justice for their roles in a long-running effort to obtain U.S. trade secrets for the benefit of companies controlled by the government of the People’s Republic of China (PRC), announced U.S. Attorney Melinda Haag; John P. Carlin, Acting Assistant Attorney General for National Security at the Department of Justice; David Johnson, Special Agent in Charge of the Federal Bureau of Investigation (FBI), San Francisco Division; and Jose Martinez, Special Agent in Charge of the Oakland Field Office, Internal Revenue Service (IRS), Criminal Investigation.
The jury found that Walter Lian-Heen Liew (aka Liu Yuanxuan), his company, USA Performance Technology Inc. (USAPTI), and Robert Maegerle conspired to steal trade secrets from E.I. du Pont de Nemours & Company regarding their chloride-route titanium dioxide production technology and sold those secrets for large sums of money to state-owned companies of the PRC. The purpose of their conspiracy was to help those companies develop large-scale chloride-route titanium dioxide production capability in the PRC, including a planned 100,000-ton titanium dioxide factory in Chongqing. This case marks the first federal jury conviction on charges brought under the Economic Espionage Act of 1996.
“Fighting economic espionage and trade secret theft is one of the top priorities of this Office and we will aggressively pursue anyone, anywhere who attempts to steal valuable information from the United States,” said U.S. Attorney Melinda Haag. “As today’s verdict demonstrates, foreign governments threaten our economic and national security by engaging in aggressive and determined efforts to steal U.S. intellectual property. I commend the efforts of the women and men of the FBI and the IRS in protecting America’s businesses and our national security.”
“The theft of America’s trade secrets for the benefit of a foreign government poses a substantial threat to our economic and national security” said Acting Assistant Attorney General John Carlin. “Today’s verdict clearly demonstrates that we take this threat seriously. This case shows that we will not hesitate to pursue and prosecute those who steal from American businesses.”
“The battle against economic espionage has become one of the FBI’s main fronts in its efforts to protect U.S. national security in the 21st century,” said Special Agent in Charge David Johnson.
"This is a case about lying, cheating, and stealing," said José M. Martínez, Special Agent in Charge, IRS Criminal Investigation. "The defendants stole secrets, lied to the bankruptcy court and cheated the IRS and creditors. In today's economic environment, it's more important than ever that the American people feel confident that everyone is playing by the rules and paying their fair share."
The jury also found that Liew, USAPTI, and Maegerle obstructed justice during the course of their conspiracy. The jury found that Liew filed false tax returns for USAPTI and Performance Group, a predecessor company to USAPTI, and made false statements and oaths in bankruptcy proceedings for Performance Group. The guilty verdicts followed a seven-week jury trial before the Honorable Jeffery S. White, U.S. District Court Judge.
Liew, 56, of Walnut Creek, Calif., was convicted of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted economic espionage, attempted theft of trade secrets, possession of trade secrets, conveying trade secrets, conspiracy to obstruct justice, witness tampering, conspiracy to tamper with evidence, false statements, filing false tax returns, false statements in bankruptcy proceedings, and false oath in bankruptcy proceedings. Liew was an owner and president of USAPTI, a company headquartered in Oakland, Calif., that offered consulting services. USAPTI was found guilty of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted economic espionage, attempted theft of trade secrets, possession of trade secrets, conveying trade secrets, and conspiracy to obstruct justice.
Evidence at trial showed that in the 1990s, Liew met with the government of the PRC and was informed that the PRC had prioritized the development of chloride-route titanium dioxide (TiO2) technology. TiO2 is a commercially valuable white pigment with numerous uses, including coloring paint, plastics, and paper. DuPont’s TiO2 chloride-route process also produces titanium tetrachloride, a material with military and aerospace uses. Liew was aware that DuPont had developed industry leading TiO2 technology over many years of research and development and assembled a team of former DuPont employees, including Robert Maegerle, to assist him in his efforts to convey DuPont's TiO2 technology to entities in the PRC. Liew executed contracts with state-owned entities of the PRC for chloride-route TiO2 projects that relied on the transfer of illegally obtained DuPont technology. Liew, Maegerle, and USAPTI obtained and sold DuPont’s TiO2 trade secret to the Pangang Group companies for more than $20 million.
Robert Maegerle, 78, of Harbeson, Del., was found guilty of conspiracy to commit theft of trade secrets, attempted theft of trade secrets, conveying trade secrets, and conspiracy to obstruct justice. Evidence at trial showed that Maegerle was employed by DuPont as an engineer from 1956 to 1991 where he had developed detailed knowledge of DuPont's TiO2 technology and expertise in building TiO2 production lines. He also had access to DuPont TiO2 trade secrets, including specific information regarding DuPont’s TiO2 facility at Kuan Yin, Taiwan. He provided these trade secrets to Liew and USAPTI in furtherance of their contracts with state-owned companies of the PRC for chloride-route TiO2 projects.
The jury also found Liew, Maegerle, and USAPTI guilty of obstructing justice by causing an answer to be filed in a federal civil lawsuit in which they falsely claimed that no information from DuPont’s Kuan Yin plant was used in the USAPTI designs for the development of TiO2 manufacturing facilities. Liew was also found guilty of witness tampering for his efforts to influence a co-defendant’s testimony in the civil lawsuit. The jury also convicted Liew of conspiring with his wife, Christina Liew, to mislead the FBI by corruptly concealing records, documents, and other objects during the FBI’s investigation into their criminal activity.
Liew was also convicted of filing a false income tax return for his company, Performance Group, for calendar years 2006, 2007, and 2008 and for USAPTI in 2009 and 2010. The jury also found Liew guilty of making false statements and a false oath in connection with filing for bankruptcy for Performance Group in 2009.
Liew, as co-owner of USAPTI, entered into contracts worth in excess of $20 million to convey TiO2 trade secret technology to Pangang Group companies. The Liews received millions of dollars of proceeds from these contracts. The proceeds were wired through the United States, Singapore, and ultimately back into several bank accounts in the PRC in the names of relatives of Christina Liew.
DuPont is a company based in Wilmington, Del., that manufactures a wide variety of products, including TiO2. DuPont invented the chloride-route process for manufacturing TiO2 in the late-1940s and since then has invested heavily in research and development to improve that production process. The global titanium dioxide market has been valued at roughly $12 billion per year, and DuPont has the largest share of that market.
The chloride-route process is cleaner, more efficient, and produces a higher-quality product than the sulfate-route process prevalent in the PRC. The object of the defendants’ conspiracy was to convey DuPont’s secret chloride-route technology to the PRC companies for the purpose of building modern TiO2 production facilities in the PRC without investing in time-consuming, costly research and development.
The second superseding indictment also charges, Liew’s wife, Christina Hong Qiao Liew (aka Qiao Hong), with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted theft of trade secrets, possession of trade secrets, witness tampering, conspiracy to tamper with evidence, and false statements. The charges against Ms. Liew were severed from those against Walter Liew, Maegerle, and USAPTI. Ms. Liew will appear before the Honorable Jeffery S. White on Thursday, March 6, 2014, in San Francisco to set the date for her trial.
Tze Chao (aka Zhao Zhi), a former DuPont employee who was also charged in the second superseding indictment, pleaded guilty to conspiracy to commit economic espionage on March 1, 2012.
Hou Shengdong, the Vice Director of the Chloride Process TiO2 Project Department for the Pangang Group, was also charged in the second superseding indictment with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, and attempted economic espionage. He is currently a fugitive.
Charges of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, and attempted economic espionage are also pending against the four PRC state-owned companies charged in the second superseding indictment.
The sentencing hearings for Liew, Maegerle, and USAPTI are scheduled for June 10, 2014, before Judge White in Oakland, Calif. Liew was remanded to the custody of the U.S. Marshals pending sentencing. Maegerle remains out of custody on conditions of release. The maximum statutory penalties for each of the counts are listed below. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office in San Francisco, the Counterespionage Section of the National Security Division of the U.S. Department of Justice in Washington, D.C., the FBI, Palo Alto Resident Agency, and Oakland Field Office, IRS Criminal Investigation.
For more information about the case and the remaining defendants: www.justice.gov/opa/pr/2012/February/12-nsd-180.htmlStatement by Attorney General Eric Holder <br /> on the Senate Vote on Debo AdegbileRead the Press Release
Attorney General Eric Holder released the following statement on the Senate’s procedural vote on Debo Adegbile to serve as the Assistant Attorney General for the Civil Rights Division:
“I’m very disappointed in the Senate’s vote. At a time when significant voting rights cases and other consequential matters are pending, it is more critical than ever to have a confirmed leader for the Civil Rights Division. Mr. Adegbile is a uniquely qualified nominee and an exceptional lawyer. He deserved to have his nomination considered wholly on the merits. His record was either misunderstood, or intentionally misrepresented for the sake of politics. Our legal system hinges on the fundamental ideal that every accused individual has a constitutional right to counsel. It is a very dangerous precedent to set for the legal profession when individual lawyers can have their otherwise sterling qualifications denigrated based solely on the clients that their organizations represent.”
Justice Department and Equal Employment Opportunity Commission Enter into Consent Decree with Harmony Public Schools Resolving Claims of Retaliation and Pay Discrimination Against TeacherRead the Press Release
The Justice Department and the Equal Employment Opportunity Commission (EEOC) announced today that they have entered into a consent decree that, if approved by the court, will resolve both agencies’ claims against Harmony Public Schools on behalf of Nicole M. Tuchscherer, a former teacher at Harmony Science Academy-Austin. The EEOC suit, filed on Oct. 30, 2012, in the U.S. District Court for the Western District of Texas, alleges that Harmony Public Schools violated the Equal Pay Act of 1963 (EPA) when it paid Tuchscherer less than a male teacher who performed the same or substantially similar work, and when it retaliated against her for opposing such compensation practices.
The Justice Department’s complaint, which was filed with the consent decree in the U.S. District Court for the Western District of Texas, alleges that Harmony Public Schools violated Title VII of the Civil Rights Act of 1964 when it retaliated against Tuchscherer by failing to renew her teaching contract because she complained of pay discrimination. The parties are seeking to consolidate the two cases and have asked the U.S. District Court to enter the consent decree resolving the claims of both the Justice Department and the EEOC.
Tuchscherer, who taught art at Harmony Science Academy-Austin for five years, held a State of Texas teaching certification and met the state’s Highly Qualified teacher criteria, earned $40,000 in her fifth year of teaching. In comparison, an uncertified male art teacher with no previous teaching experience was paid an annual salary of $44,000 by Harmony Public Schools to teach at another Austin-area school. The EEOC, which has litigation authority against state and local governments pursuant to the EPA, has alleged that in paying Tuchscherer less than a male counterpart who performed the same or substantially similar work, Harmony violated the EPA.
In May 2010, during an annual salary negotiation meeting with the school principal, Tuchscherer asked Harmony to pay her a salary equal to that of male teachers of Turkish descent at the school. According to the Justice Department’s complaint, when Tuchscherer told Principal Halit Erdogdu that she believed Harmony discriminates against women and Americans in compensation, he became angry with Tuchscherer for raising these issues and called her unprofessional and negative. Two weeks later, Harmony Public Schools informed Tuchscherer that her teaching contract had not been renewed. Both the EEOC and the Justice Department allege that this decision was in retaliation for Tuchscherer complaining of unlawful discrimination. This is the second joint EPA-Title VII litigation effort in Texas resolved by the two federal agencies.
Under the terms of the consent decree, Harmony Public Schools has agreed to pay $125,000 in lost wages and compensatory damages to Tuchscherer. Harmony Public Schools has also agreed to: include two previously-written reference letters in Tuchscherer’s official personnel file; develop and distribute comprehensive anti-discrimination and anti-retaliation policies; train the employees at its five Austin-area schools regarding employee rights and employer obligations under the EPA and Title VII; and post on the premises of its Austin-area schools a notice to employees.
“Both Title VII and the Equal Pay Act protect employees who have the courage to challenge discriminatory compensation practices from unlawful retaliation by their employers,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “We are pleased to have been able to work cooperatively with the Equal Employment Opportunity Commission to achieve a broad range of injunctive and monetary relief in this important case.”
“The EEOC’s Strategic Enforcement Plan has made sex-based wage discrimination a national enforcement priority,” said EEOC General Counsel David Lopez. “This case represents our latest litigation effort to combat this problem and reflects our commitment to work collaboratively on equal pay issues with our governmental partners.”
In Fiscal Year 2012, EEOC received over 4,100 charges of gender-based wage discrimination, and obtained over $24 million in relief for victims of gender-based wage discrimination through administrative enforcement efforts and litigation. The EEOC and Justice Department also continue to serve as key members of the National Equal Pay Enforcement Task Force, a federal government initiative focused on ending the gender pay gap.
The EEOC’s case was litigated by Senior Trial Attorney Eduardo Juarez and Supervisory Trial Attorney Judith Taylor of the EEOC, and the Justice Department’s case was handled by Senior Trial Attorneys Valerie Meyer and Amy Kurren and Deputy Chief Karen Woodard of the Civil Rights Division’s Employment Litigation Section.
More information about the EEOC is available on its website . Additional information about the Employment Litigation Section of the Civil Rights Division is available on its website .
Justice Department Files Lawsuit Against the School District of Philadelphia for Religious DiscriminationRead the Press Release
The Department of Justice announced the filing of a lawsuit today against the School District of Philadelphia alleging that the district discriminated against Siddiq Abu-Bakr, as well as other similarly-situated individuals, on the basis of religion in violation of Title VII of the Civil Rights Act of 1964. The lawsuit further alleges that the district’s employment policies constitute a pattern or practice of religious discrimination, also in violation of Title VII.
The complaint, filed in the U.S. District Court for the Eastern District of Pennsylvania, alleges that the district discriminated against Abu-Bakr and similarly-situated individuals by failing to accommodate their religious beliefs after it instituted a new grooming policy in October 2010 that prevented school police officers and security officers from having beards longer than one-quarter inch. Abu-Bakr, a school police officer since 1987, is a member of the Islamic faith, which requires him not to cut his beard. Consistent with his religious beliefs, Abu-Bakr has maintained an untrimmed beard longer than one-quarter inch for the 27 years that he has worked for the district, without evidence that the maintenance of an uncut beard has interfered with his job performance. When Abu-Bakr notified his supervisor that he could not comply with the new grooming policy due to his religious beliefs, Abu-Bakr was issued a written reprimand for violating the policy. According to the complaint, the district failed to consider Abu-Bakr’s request for reasonable accommodation to its grooming policy that would have been in accordance with his religious beliefs, and later denied his request without making the requisite showing that doing so would cause an undue hardship.
Through this lawsuit, the United States is seeking declaratory and injunctive relief requiring the district to develop and implement new grooming policies that would prevent its employees from being discriminated against based upon religion, as well as monetary damages for Abu-Bakr and similarly-situated individuals.
“Individuals should not have to choose between maintaining their jobs and practicing their faith when accommodations can be reasonably made,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “Federal law requires all employers, even those with grooming and uniform policies, to reasonably accommodate the religious observances and practices of their employees.”
Abu-Bakr originally filed a charge of religious discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Philadelphia District Office investigated the matter, determined that there was reasonable cause to believe that discrimination had occurred, and referred the matter to the Department of Justice.
“No employee should be forced to violate his religious beliefs in order to earn a living,” said District Director Spencer H. Lewis Jr. of the EEOC’s Philadelphia District Office. “Modifying a dress or grooming code is a reasonable accommodation that enables employees to keep working without posing an undue hardship on the employer. We are pleased that the EEOC's collaboration with the Department of Justice protects public employees from religious discrimination.”
The continued enforcement of Title VII is a priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Department of Justice is available on its website .
Justice Department Asks Federal Court to Shut Down Clinton, Miss., Tax PreparerRead the Press Release
The United States filed a complaint seeking to bar Kavivah Branson, aka Kavivah Bradley, and her Jackson, Miss., business, Branson Tax Service, from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction complaint, filed in the U.S. District Court for the Southern District of Mississippi, alleges that Branson, of Clinton, Miss., prepares federal income tax returns for customers that understate the tax actually due. According to the complaint, Branson allegedly claims improper earned income tax credits and education credits for her customers without performing required due diligence and despite lack of supporting documentation. This results in understated taxes, and because the improperly claimed credits are refundable, the complaint alleges Branson also often overstates her customers’ refunds. Consequently, even taxpayers who do not report any federal tax liability can receive a refund up to the amount of the refundable credit claimed.
According to the complaint, over 99 percent of the 2,401 returns Branson has prepared since Jan. 1, 2009, sought a refund, and 97 percent of the 287 returns the Internal Revenue Service (IRS) has audited to date understated the customer’s tax liability by an average of $5,006. Given the number of returns Branson has prepared since 2009, her alleged actions could result in millions of dollars of tax harm to the United States.
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.
Related Materials:
United States v. Kavivah Branson, et al.
ComplaintCoal Companies and Subsidiaries to Spend Estimated $200 Million on Treatment and System-wide Upgrades to Reduce Water PollutionRead the Press Release
Alpha Natural Resources, Inc. (Alpha), one of the nation’s largest coal companies, Alpha Appalachian Holdings (formerly Massey Energy), and 66 subsidiaries have agreed to spend an estimated $200 million to install and operate wastewater treatment systems and to implement comprehensive, system-wide upgrades to reduce discharges of pollution from coal mines in Kentucky, Pennsylvania, Tennessee, Virginia and West Virginia, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today. Overall, the settlement covers approximately 79 active mines and 25 processing plants in these five states.
EPA estimates that the upgrades and advanced treatment required by the settlement will reduce discharges of total dissolved solids by over 36 million pounds each year, and will cut metals and other pollutants by approximately nine million pounds per year. The companies will also pay a civil penalty of $27.5 million for thousands of permit violations, which is the largest penalty in history under Section 402 of the Clean Water Act (CWA).
“The unprecedented size of the civil penalty in this settlement sends a strong deterrent message to others in this industry that such egregious violations of the nation's Clean Water Act will not be tolerated,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Today’s agreement is good news for communities across Appalachia, who have too often been vulnerable to polluters who disregard the law. It holds Alpha accountable and will bring increased compliance and transparency among Alpha and its many subsidiaries.”
“This settlement is the result of state and federal agencies working together to protect local communities from pollution by enforcing the law,” said Cynthia Giles, Assistant Administrator of EPA’s Office of Enforcement and Compliance Assurance. “By requiring reforms and a robust compliance program, we are helping to ensure coal mining in Appalachia follows environmental laws that protect public health.”
In addition to paying the penalty, the companies must build and operate treatment systems to eliminate violations of selenium and salinity limits, and also implement comprehensive, system-wide improvements to ensure future compliance with the CWA. These improvements, which apply to all of Alpha’s operations in Appalachia, include developing and implementing an environmental management system and periodic internal and third-party environmental compliance audits.
The companies must also maintain a database to track violations and compliance efforts at each outfall, significantly improve the timeliness of responding to violations, and consult with third party experts to solve problem discharges. In the event of future violations, the companies will be required to pay stipulated penalties, which may be increased and, in some cases, doubled for continuing violations.
The government complaint alleged that, between 2006 and 2013, Alpha and its subsidiaries routinely violated limits in 336 of its state-issued CWA permits, resulting in the discharge of excess amounts of pollutants into hundreds of rivers and streams in Kentucky, Pennsylvania, Tennessee, Virginia, and West Virginia. The violations also included discharge of pollutants without a permit.
In total, EPA documented at least 6,289 violations of permit limits for pollutants that include iron, pH, total suspended solids, aluminum, manganese, selenium, and salinity. These violations occurred at 794 different discharge points, or outfalls. Monitoring records also showed that multiple pollutants were discharged in amounts of more than twice the permitted limit on many occasions. Most violations stemmed from the company’s failure to properly operate existing treatment systems; install adequate treatment systems; and implement appropriate water handling and management plans.
Today’s settlement also resolves violations of a prior 2008 settlement with Massey Energy, and applies to the facilities and sites formerly owned by the company. Under the 2008 settlement, Massey paid a $20 million penalty to the federal government for similar CWA violations, in addition to over a million dollars in stipulated penalties over the course of the next two years. Alpha purchased Massey in June 2011 and, since taking over the company, has been working cooperatively with the government in developing the terms of today’s settlement.
CWA permits allow for the discharge of certain pollutants in limited amounts to rivers, streams, and other water bodies. Permit holders are required to monitor discharges regularly and report results to the respective state agencies.
Alpha, headquartered in Bristol, Va., is one of the largest coal companies in the nation. Alpha operates more than 79 active coal mines and 25 coal preparation plants located throughout Kentucky, Pennsylvania, Tennessee, Virginia, West Virginia, and Wyoming. The Wyoming operations are not included in today’s settlement.
The States of West Virginia, Pennsylvania, and Kentucky are co-plaintiffs in today’s settlement. The U.S. will receive half of the civil penalty and the other half will be divided between the co-plaintiffs based on the number of violations in each state, as follows: West Virginia ($8,937,500), Pennsylvania ($4,125,000), and Kentucky ($687,500).
The consent decree, lodged in the U.S. District Court for the Southern District of West Virginia, is subject to a 30-day public comment period and approval by the federal court.
For more information on the settlement visit: http://www2.epa.gov/enforcement/alpha-natural-resources-inc-settlement.
For more information on Clean Water Act Enforcement, visit: http://www.epa.gov/compliance/civil/cwa/index.html.Alexandria, Va., Couple Arrested on Immigration Charges for Harboring Domestic Servant in Their HomeRead the Press Release
The Department of Justice announced today that a federal criminal complaint has been filed in the Eastern District of Virginia charging defendants Abdelkader and Hnia Amal with immigration offenses in connection with allegations that they held a woman in their home as a domestic servant for three years. The defendants were each charged with one count of alien harboring for commercial advantage and private financial gain.
According to the complaint, the defendants, who are husband and wife, concealed, harbored and shielded from detection in their home in Alexandria, Va., a Moroccan national, identified in the complaint as Witness-1, from December 2007 until December 2010. The complaint also alleges that Hnia Amal had the Moroccan national work for her commercial cleaning company, cleaning various residential and commercial properties. As further alleged in the complaint, the defendants unlawfully brought the Moroccan national into the United States on a visa they procured based on false representations that the Moroccan national would be employed as a domestic servant for a different employer. According to the complaint, the defendants allegedly benefitted financially by paying the Moroccan national only $9,000 for over three years of full-time work in their home and for Hnia Amal’s commercial cleaning company.
If convicted, Abdelkader and Hnia Amal could face a statutory maximum sentence of 10 years in prison and a $250,000 fine. A complaint is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the FBI – Washington Field Office and the U.S. Department of State’s Diplomatic Security Service. The case is being prosecuted by Special Assistant U.S. Attorney C. Alexandria Bogle of the Eastern District of Virginia and Trial Attorney Matthew Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Singapore Shipping Company, Crew Member, Plead Guilty to Illegally Discharging Oily WasteRead the Press Release
Singapore-based ODFJELL ASIA II PTE LTD (ODFJELL) and one of its senior crew members pleaded guilty yesterday in federal court in Hartford, Conn., for violating the Act to Prevent Pollution from Ships (APPS), announced Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division Robert G. Dreher, United States Attorney Deirdre M. Daly and Rear Admiral Daniel B. Abel, Commander of the First Coast Guard District in Boston.
“The defendants violated environmental laws that protect our oceans, the world’s fisheries and marine life, from harmful pollution,” said Acting Assistant Attorney General Dreher. “Today's conviction ensures they will be held accountable with a stiff criminal fine, contribute to conservation efforts in coastal areas of Long Island, and submit to strict monitoring. We hope this sends a strong message to the shipping industry that committing environmental crimes at sea will not be tolerated.”
“Pollution of our waters will not be tolerated,” said U.S. Attorney Daly. “Shipping companies are on notice that violating American environment laws will result in federal prosecution and puts at risk their business interests in this country. Crew members who ignore these laws may also face incarceration. Although these illegal discharges of oily waste occurred in international waters, we are gratified that a quarter of the $1.2 million monetary penalty will fund improvements and protection of the Long Island Sound, a vital economic and recreational resource that contains many unique wildlife habitats.”
“The Coast Guard is committed to working with the maritime industry, and federal, state and local law enforcement partners, to protect the U.S. maritime environment from individuals who pollute our waters,” said Rear Admiral Abel. “When these violations occur, the Coast Guard will work with our partners to ensure that the violators are held accountable under the law.”
According to court documents and statements made in court, ODFJELL operated the M/T Bow Lind, a 577-foot, 26,327 gross ton petroleum/chemical tanker ship. On Nov. 6, 2012, the U.S. Coast Guard boarded the vessel in New Haven, Conn., to conduct an inspection. The inspection and subsequent criminal investigation revealed that three times between October 2011 and October 2012, while in international waters, the vessel discharged machinery space bilge water directly into the sea. At the direction of senior engineer Ramil Leuterio, crew members bypassed pollution prevention equipment that was in place to ensure that any discharged bilge water contain less than 15 parts per million of oil. The crew then concealed the illegal discharges by making misleading entries and omissions in the vessel’s oil record book.
According to several engine room crew members, Leuterio directed them to use a complex system to transfer the bilge water from the bilge holding tank to the sewage tank. From the sewage tank, the bilge water was dumped directly into the sea without passing through pollution prevention equipment. Once the bilge holding tank was emptied, Leuterio directed the lower ranking crew members to put clean fresh water and salt water into the tank. As the pollution prevention equipment automatically records the time it is being operated, Leuterio then processed the clean water through the prevention equipment, thereby creating an electronic record to account for the bilge water that had bypassed the equipment and been discharged directly overboard.
Under the terms of a binding plea agreement, if accepted by the court, ODFJELL will be placed on probation for a period of three years and pay a criminal penalty totaling $1.2 million, including $300,000 that will be directed to The National Fish and Wildlife Foundation to fund projects aimed at the preservation and restoration of the marine environment of Long Island Sound.
As a condition of probation, ODFJELL will implement an environmental management plan which will ensure that any ship operated by ODFJELL calling on a port of the United States complies with all maritime environmental requirements established under applicable international, flag state, and port state laws. The plan ensures that ODFJELL’s employees and the crew of any vessel operated by ODFJELL that calls on a United States port are properly trained in preventing maritime pollution. An independent monitor will report to the court regarding ODFJELL’s compliance with these obligations during the period of probation.
Leuterio, 42, a citizen of the Philippines, pleaded guilty yesterday to one count of violating APPS for his role in directing lower ranking crewmembers to make the illegal discharges and for failing to accurately maintain the vessel’s oil record book. He faces a maximum term of imprisonment of six years and a fine of up to $250,000.
U.S. District Judge Vanessa L. Bryant has scheduled sentencing for May 14, 2014.
This case was investigated by the U.S. Coast Guard Sector Long Island Sound, Coast Guard Investigative Service, and Coast Guard office of Investigations and Analysis (CG-INV). The case is being prosecuted by Trial Attorney Stephen Da Ponte in the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice and Assistant U.S. Attorney Paul H. McConnell from the U.S. Attorney's Office for the District of Connecticut.Justice Department Sues to Shut Down Dallas Tax Return PreparerRead the Press Release
The United States has asked a federal court in Dallas, Texas, to permanently bar Ricia Daniels and her company, Ricia’s Convenience Tax Service, from preparing federal tax returns for others, the Justice Department announced today.
The complaint alleges that, through her business, Daniels understates her customers’ federal tax liabilities by reporting false or inflated personal and business expenses, reporting false or inflated education expenses and improperly claiming other tax credits. According to the complaint, an Internal Revenue Service (IRS) investigation revealed that 97 out of 98 income tax returns prepared by Daniels and audited by the IRS resulted in understatements of her customers’ tax liabilities. The government alleges that the tax harm caused by these understatements exceeds $500,000.
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.
Related Materials:
United States v. Ricia Daniels, et al.
Complaint for Permanent Injunction and Other ReliefFormer Project Manager Sentenced to Serve Time in Prison for Role in Bid Rigging and Other Fraudulent Schemes Involving Two EPA Superfund Sites in New JerseyRead the Press Release
Gordon D. McDonald, a former project manager for a prime contractor at two U.S. Environmental Protection Agency (EPA) Superfund sites in New Jersey, was sentenced today to serve 14 years in prison for participating in multiple bid-rigging, fraud and kickback schemes, the Department of Justice announced. The prison term, which takes into account the multiple crimes McDonald committed, represents the longest prison sentence ever imposed involving an antitrust crime.
In addition to the prison sentence, McDonald was sentenced in U.S. District Court for the District of New Jersey in Newark by Judge Susan D. Wigenton to pay a $50,000 fine. The court will order restitution at a later date.
After a two week jury trial, ending on Sept. 30, 2013, McDonald was convicted of engaging in separate bid-rigging, kickback and fraud conspiracies with three subcontractors at two New Jersey Superfund sites - Federal Creosote in Manville, N.J., and Diamond Alkali in Newark, in return for kickbacks of more than $1.5 million. He was also convicted of engaging in an international money laundering scheme, major fraud against the United States, committing two tax violations and obstruction of justice. The various conspiracies took place at different time periods from approximately December 2000 until approximately April 2007. McDonald was initially charged in an indictment returned on Aug. 31, 2009.
“Today’s sentencing reflects the seriousness of the crimes committed,” said Bill Baer, Assistant Attorney General in charge of the Justice Department’s Antitrust Division. “The prison sentence imposed by the court shows that if you engage in bid-rigging, fraud and kickback schemes your illegal actions will result in a longer prison sentence.”
According to evidence presented at trial, McDonald accepted kickbacks from sub-contractors in exchange for the award of sub-contracts at Federal Creosote. McDonald provided co-conspirators at Bennett Environmental Inc., a Canadian-based company that treats and disposes of contaminated soil, with bid prices of their competitors, which allowed them to submit the highest possible bid prices and still be awarded the sub-contracts.
McDonald also accepted kickbacks in exchange for the award of sub-contracts at the Federal Creosote and Diamond Alkali sites from the owner of JMJ Environmental Inc., a wastewater treatment and chemical supply company, and the co-owner of National Industrial Supply LLC, an industrial pipe supplier. He also participated in a conspiracy with the owner of JMJ and co-conspirators to rig bids and allocate sub-contracts for wastewater treatment supplies and services at Federal Creosote.
Including McDonald, nine individuals and three companies have pleaded guilty or been convicted of charges arising out of this investigation. More than $6 million in criminal fines and restitution have been imposed and six of the individuals have been sentenced to serve prison sentences ranging from five to 168 months. One individual was sentenced to six months home confinement and the remaining two were sentenced to pay criminal fines and restitution. An additional individual, John A. Bennett, a Canadian citizen, was also charged on Aug. 31, 2009, and is facing extradition to the United States.
The cleanup at Federal Creosote is partly funded by the EPA. An interagency agreement between the EPA and the Army Corps of Engineers designated that the Army Corps hire the prime contractors at Federal Creosote. According to a settlement with the EPA and the New Jersey Department of Environmental Protection, Tierra Solutions was required to fund remedial action and maintenance of Diamond Alkali. Tierra Solutions hired the prime contractor for the remedial action and maintenance of Diamond Alkali.
Today’s conviction is the result of an ongoing federal antitrust investigation being conducted by the Antitrust Division’s New York Office, the EPA Office of Inspector General and the Internal Revenue Service-Criminal Investigation. Anyone with information concerning bid rigging, kickbacks, tax offenses or fraud relating to subcontracts awarded at the Federal Creosote Superfund site or Diamond Alkali Superfund site should contact the Antitrust Division’s New York Office at 212-335-8000 or visit www.justice.gov/atr/contact/newcase.htm.
Attorney General Holder Announces President Obama’s Budget Proposes $173 Million for Criminal Justice ReformRead the Press Release
Attorney General Eric Holder announced today that President Obama’s FY 2015 Budget proposal for the Department of Justice calls for $173 million in targeted investments for criminal justice reform efforts.
These investments—such as increased funding for state and local prisoner reentry initiatives—are among the key highlights in the president’s overall $27.4 billion budget request for the Justice Department. The FY 2015 request, which represents a $122 million increase over the FY 2014 enacted level, supports a range of federal law enforcement priorities, as well as the criminal justice priorities of state, local and tribal law enforcement partners.
“Each dollar spent on prevention and reentry has the potential to save several dollars in incarceration costs,” said Attorney General Eric Holder. “These wise investments can help make our criminal justice system more effective and efficient. Overall, this budget request shows our strong commitment to building upon the record of progress we have established in fulfilling the Justice Department’s most critical missions.”
In August 2013, the Attorney General introduced the “Smart on Crime” initiative—a package of reforms to the criminal justice system to help ensure that federal laws are enforced more fairly and more efficiently. Among other reforms, the effort promotes diversion courts and other alternatives to incarceration for low-level drug offenders, and urges investment in reentry programs in order to reduce recidivism among formerly incarcerated individuals.The President’s budget request seeks to put critical resources behind this effort. Specifically, in addition to funds routinely provided for federal prisoner reentry efforts, the FY 2015 request:
• Requests $15 million for U.S. Attorneys, including prosecution prioritization, prevention and reentry work and promoting alternatives to incarceration such as the establishment of drug courts and veteran courts;
• Sustains $15 million for the Bureau of Prisons to expand the Residential Drug Abuse Program at the federal level and $14 million provided in the FY 2014 appropriation to assist inmates with reentering society and reducing the population of individuals who return to prison after being released;
• Requests $14 million in the Office of Justice Programs to expand the Residential Substance Abuse Treatment program at the state and local level; and
• Requests $115 million for the Second Chance Act Grant program, through state and local assistance programs, to reduce recidivism and help ex-offenders return to productive lives.Beyond criminal justice reform, the Department of Justice’s other key funding priorities include:
• $273 million to help meet the nation’s civil rights challenges--including an $8 million program increase;
• $4 billion for national security--including a $15 million program increase;
• $1.1 billion to protect Americans from gun violence--including $182 million to support the president’s “Now is the Time” gun safety initiative;
• $722 million for cyber security--including $8 million in program increases;
• $44 million for Mutual Legal Assistance Treaty responsibilities--including $24 million in increases to reform the process;
• $681 million for financial fraud law enforcement-to maintain our current efforts;
• $2.9 billion to support immigration law enforcement--including a $23 million program increase;
• $8.5 billion to maintain and secure federal prisons and detention facilities;
• $3 billion in mandatory and discretionary funds to maintain assistance to state, local and tribal law enforcement; and
• $1.2 billion in federal program offsets and rescissions.In addition, the FY 2015 President’s Budget proposes additional discretionary investments for the department as part of the Administration’s Opportunity, Growth and Security Initiative. The initiative includes targeted investments for state and local justice assistance grants, with additional resources for the Comprehensive School Safety Program, COPS Hiring Program, and new youth investments; funding for the Bureau of Prisons (BOP) to continue the process of bringing on-line newly completed and acquired prisons; and funding for improved capacity for financial fraud enforcement.
Below is an explanation of a few of the key highlights from President Obama’s FY 2015 budget request for the Department of Justice:
CIVIL RIGHTSThe department’s mission includes upholding the civil and constitutional rights of all Americans, particularly the most vulnerable members of our society. Accomplishing this requires necessary resources both to investigate and to litigate. The department maintains substantial responsibilities with respect to enforcing the nation’s civil rights laws and protecting vulnerable populations. The FY 2015 budget will support the department’s vigorous enforcement of federal civil rights laws – including those pertaining to human trafficking, hate crimes, police misconduct, fair housing, fair lending, disability rights and voting. As such, the department’s FY 2015 budget requests $273 million to help meet the nation’s civil rights challenges. The request includes $7.6 million in program increases for the Civil Rights Division and Community Relations Service.
For more information, view the Civil Rights Fact Sheet at www.justice.gov/jmd/2015factsheets/.
NATIONAL SECURITY
Defending our nation’s security from both internal and external threats remains the department’s highest priority. The FY 2015 budget request provides a total of $4 billion to maintain critical counterterrorism and counterintelligence programs, and sustains recent increases for intelligence gathering and surveillance capabilities.
The Administration supports critical national security programs within the department, including those led by the FBI and the National Security Division (NSD). In FY 2013, the FBI dedicated 4,500 agents to investigate more than 18,000 national security cases. NSD has continued to carry out its primary functions to prevent acts of terrorism and espionage in the United States and to facilitate the collection of information regarding the activities of foreign agents and powers.
In FY 2015, the department is investing an additional $15 million to fund the annual costs of the FBI’s new Terrorist Explosive Device Analytical Center (TEDAC) at Redstone Arsenal in Huntsville, Ala. TEDAC is a forensic and technical laboratory dedicated to the mitigation and prevention of improvised explosive device attacks in the United States and abroad. It has provided critical assistance to domestic and international cases, including last year’s Boston Marathon bombing.
For more information, view the National Security Fact Sheet at www.justice.gov/jmd/2015factsheets/.
GUN SAFETY
Gun violence has touched every state, county, city and town in America. In 2013 the President introduced the “Now is the Time” initiative, which laid out a comprehensive plan to reduce gun violence and save lives. The department is working to implement a number of these actions and requests a total of $1.1 billion in FY 2015 to address violent gun crimes, including $182 million to sustain the new investments provided in FY 2014.
Specifically, the request provides $35 million in new resources in support of the president’s plan to ensure that those who are not eligible to purchase or possess guns are prevented from doing so. This includes $13 million for the FBI to maintain improvements made in FY 2014 to the National Instant Criminal Background Check System (NICS) aimed at addressing the increasing volume of firearm background checks. We are also taking a thorough look at our federal laws and our enforcement priorities to ensure that we are doing everything possible at the federal level to keep firearms away from traffickers and others prohibited by law from possessing firearms. To this end, $22 million is also included for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to sustain critical firearms enforcement efforts funded in FY 2014.
And while most of the department’s efforts will be focused on keeping guns out of the wrong hands, we also want to help those on the ground prevent and mitigate violent situations when they do occur. To this end, the grant program requests a total of $147 million including $55 million to incentivize states to provide criminal history and mental health records to the NICS; $75 million to continue the Comprehensive School Safety program, which provides critical resources for research and for pilot programs to augment school safety personnel and to determine the effectiveness of various school safety measures; $2 million to encourage the development of innovative gun safety technology; and $15 million for the VALOR Initiative, including training for active shooter situations.
For more information, view Gun Safety Fact Sheet at www.justice.gov/jmd/2015factsheets/.
CYBERSECURITY
Investigating cybercrime and protecting our nation’s critical network infrastructure is a top priority of the department in an era when cyber-attacks and crimes are increasingly common, sophisticated, and dangerous. The FY 2015 budget request provides a total of $722 million for the department’s cyber enforcement efforts and maintains recent increases for the National Security Division’s (NSD) prosecutorial efforts and the FBI’s Next Generation Cyber Initiative, which enhanced capabilities to combat cyber threats from individuals, organized groups and rogue actors. The request also includes an increase of $3 million for the Criminal Division to enhance its investigative and prosecutorial capabilities; and $5 million to provide grants related to cybercrime and intellectual property enforcement.
The department has a unique and critical role in cyber security that emphasizes domestic mitigation of threats and involves countering these threats by investigating and prosecuting intrusion cases, gathering intelligence and providing legal and policy support to other departments. The department is also responsible for establishing effective internal network defense and serving as a model for other departments and agencies.
We are committed to carrying out our role consistent with the Administration’s Executive Order 13636 on Improving Critical Infrastructure Cyber Security, which emphasizes intelligence and information sharing as well as the preservation of privacy, data confidentiality and civil liberties. As part of this effort, the department continues to maintain and strengthen its cyber security environment to counter cyber threats, including insider threats, and to ensure personnel have unimpeded access to the IT systems, networks and data necessary to achieve their missions.
For more information, view the Cyber Security Fact Sheet at www.justice.gov/jmd/2015factsheets/.
MUTUAL LEGAL ASSISTANCE TREATY (MLAT) REFORM
The department is leading an effort to update, improve and accelerate the processing of requests from foreign governments for evidence requested pursuant to Mutual Legal Assistance Treaties (MLAT). Delays and difficulties in obtaining evidentiary records through the MLAT process is increasingly becoming a source of frustration for many of our foreign country partners. The department is committed to honoring its obligations under these treaties, and as a result the FY 2015 budget request includes a total of $44 million to support MLAT responsibilities, including an increase of $24 million to centralize and improve the MLAT request process.
Over the past decade, the number of requests for assistance from foreign authorities handled by the Criminal Division’s (CRM) Office of International Affairs (OIA) has increased nearly 60 percent, and the number of requests for computer records has increased ten-fold. While the workload has increased dramatically, U.S. Government resources, including personnel and technology, have not kept pace with this increased demand. This MLAT reform is a cross-agency effort involving the Departments of Justice, State and Commerce. Funds identified in the FY 2015 President’s Budget for improvements to the MLAT program will be coordinated across these departments and agencies as well as the commercial sector. With these additional resources, the department will centralize the processing system and reduce its backlog and response time by half by the end of 2015.These resources are critical to supporting the President’s National Security Strategy, which recognizes the centrality of international mutual cooperation in criminal justice and counterterrorism matters, by building the “new framework for international cooperation” envisioned by that strategy.
For more information, view the Mutual Legal Assistance Treaty Fact Sheet at www.justice.gov/jmd/2015factsheets/.
FINANCIAL FRAUD
Investigating and prosecuting financial fraud continues to be a priority for the Obama Administration. The FY 2015 budget request provides a total of $681 million for financial fraud enforcement and continues efforts to strengthen the department’s ability to pursue large-scale financial fraud investigations in order to ensure that Americans, their investments and our financial markets are protected. The Administration’s Opportunity, Growth and Security Initiative includes additional resources for the department’s critical economic fraud enforcement efforts focused on financial institutions and the mortgage industry.
Ongoing efforts by the President’s Financial Fraud Enforcement Task Force (FFETF) are included in the department’s request. Since its inception in FY 2010, FFETF has facilitated increased investigations and prosecution of financial fraud relating to the financial crisis and economic recovery efforts. This includes securities and commodities fraud, investment scams and mortgage foreclosure schemes and a broad range of financial crimes, including cases being investigated and brought by the FFETF’s Residential Mortgage-Backed Securities Working Group.
For more information, view the Financial Fraud Fact Sheet at www.justice.gov/jmd/2015factsheets/.
IMMIGRATION
The department maintains substantial responsibilities with respect to immigration, including enforcement, detention, judicial functions, administrative hearings and litigation. The department’s Executive Office for Immigration Review (EOIR) maintains a nationwide presence overseeing the immigration court and appeals process. Combined with the Civil Division’s Office of Immigration Litigation, the department has a wide and important role in immigration enforcement.
EOIR receives cases directly from the Department of Homeland Security (DHS) enforcement personnel, and EOIR’s caseload is increasing at unsustainable levels. For example, EOIR’s immigration court caseload has continued to outpace department resources, increasing by 56 percent, from 229,000 to 358,000, between FY 2009 and FY 2013.
The FY 2015 budget request includes a $23 million investment to support immigration courts. The budget supports an additional 35 Immigration Judge Teams and 15 Board of Immigration Appeals attorneys. This will allow EOIR to address caseload increases emanating from DHS programs. The additional funding will also enable EOIR to expand a pilot program initially funded in FY 2014 that provides counsel to vulnerable populations, such as unaccompanied alien children, and to expand the Legal Orientation Program that improves efficiencies in immigration court proceedings for detained aliens.
For more information, view the Immigration Fact Sheet at www.justice.gov/jmd/2015factsheets/.
PRISONS AND DETENTION
The department continues to prioritize the maintenance of secure, controlled detention and prison facilities, as well as investment in programs that can reduce recidivism. The FY 2015 budget request provides $8.5 billion for prisons and detention. Of this amount, $6.9 billion is requested for the Bureau of Prisons (BOP) and $1.6 billion is for the Federal Prisoner Detention (FPD) appropriation. As part of the Opportunity, Growth and Security Initiative, the FY 2015 request also includes targeted investments to reduce prison overcrowding by providing the Bureau of Prisons resources to bring on-line newly completed or acquired prisons.
Additionally, the budget request includes funding to support the Attorney General Holder’s Smart on Crime Initiative, which is intended to promote fundamental reforms to the criminal justice system that will ensure the fair enforcement of federal laws, improve public safety, reduce recidivism and successfully prepare inmates for their reentry into society. Included are funds to sustain the investments made in FY 2014 for BOP’s reentry programs including the Residential Drug Abuse Program, Residential Reentry Centers and reentry-specific education programs.
For more information, view the Prisons and Detention Fact Sheet at www.justice.gov/jmd/2015factsheets/.
STATE, LOCAL AND TRIBAL LAW ENFORCEMENT
In total, the FY 2015 budget requests $3 billion in mandatory and discretionary funds for state, local and tribal law enforcement assistance. These funds will allow the department to continue to support our state, local and tribal partners who fight violent crime, combat violence against women and support victim programs. The FY 2015 request will bolster the department’s efforts to ensure that federal grant funding flows to evidence-based purposes and helps to advance knowledge of what works in state and local criminal justice.
The department is requesting $1.5 billion for the Office of Justice Programs’ (OJP) discretionary grants. The request increases funding for an evaluation clearinghouse, an indigent defense initiative, and evidence-based competitive programs. Funding is included to establish the Byrne Incentive Grants and Juvenile Justice Realignment Incentive grants; these programs will provide supplementary awards to states and localities using formula grant funds for evidence-based purposes. The request also includes funding to address school safety and gun violence with resources to improve criminal history records information and to fund the comprehensive school safety program, which received funding initially in FY 2014.
The FY 2015 budget request includes a total of $423 million for the Office on Violence Against Women (OVW), and continues the Administration’s strong commitment to providing federal leadership in developing the nation’s capacity to combat sexual assault and violence against women. The request includes an increase of $9 million for Legal Assistance to Victims Programs, Campus Violence, Grants to Support Families in the Justice System and the Transitional Housing program. These programs fund both proven and cutting-edge interventions to save lives, hold abusers accountable and rebuild families and communities.The request includes $274 million for Community Oriented Policing Services (COPS), which supports an increase of $71 million increase for COPS hiring and Tribal Law Enforcement programs. These resources will fund officers and thereby support the efforts of state, local and tribal law enforcement agencies in meeting the challenge of keeping their communities safe.
For more information, view the State, Local and Tribal Law Enforcement Fact Sheet at www.justice.gov/jmd/2015factsheets/
United States Reaches Settlement with Stamford Public Schools to Ensure Equal Opportunities for English Language Learner StudentsRead the Press Release
The U.S. Department of Justice and the U.S. Attorney’s Office for the District of Connecticut announced that they have entered into a comprehensive settlement agreement with the Stamford Public School District in Stamford, Conn., that requires the district to provide language services and other supports to the more than 2,000 English Language Learner (ELL) students enrolled in the district’s 20 schools. The agreement stems from the United States’ compliance review of the district’s ELL program under the Equal Educational Opportunities Act of 1974.
The agreement requires the district to implement wide-ranging measures to ensure that ELL students have equal opportunities to succeed academically in its educational programs, beginning with the proper identification and placement of ELL students when they enroll in the system. Among other requirements, the agreement requires the district to: provide language acquisition services to all ELL students until they reach the state’s English proficiency criteria; ensure that teachers of ELL students are qualified to provide these services; obtain adequate materials for ELL students; monitor students after they exit ELL services to ensure they are participating meaningfully and equally in general education classes; and make appropriate language services available for ELL students with disabilities.
“Today, the Stamford Public Schools undertook a significant step toward ensuring the success of every student from the beginning of his or her school career in the district,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “Faithful implementation of this settlement agreement will ensure that ELL students, like all district students, have access to qualified teachers, instruction designed to impart the necessary English language skills, and dedicated resources to meet ELL students’ particular learning needs. We applaud the school district for working collaboratively with the United States to develop the comprehensive plan reflected in this agreement.”
“By entering into this agreement, the Stamford public school system has reaffirmed its mission to provide all of our children with the equal opportunity to become productive citizens, regardless of their proficiency in English," said U.S. Attorney Deirdre M. Daly for the District of Connecticut. "This settlement agreement creates a roadmap for all Connecticut schools that provides a comprehensive plan to effectively serve all students who are not yet proficient in English. We thank Stamford for working with the Justice Department to achieve this positive and hopeful result."
The enforcement of the Equal Educational Opportunities Act is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on the division’s website .
Massachusetts Dentist Charged with Tax EvasionRead the Press Release
A federal grand jury in Boston has indicted George Fenzell for tax evasion and corruptly endeavoring to obstruct the Internal Revenue Service (IRS), the Justice Department and the IRS announced today following the unsealing of the indictment. Fenzell, of Douglas, Mass., is a practicing dentist with offices in Shrewsbury, Mass., and Brookline, N.H.
According to the indictment, from 1999 through 2012, Fenzell engaged in conduct intended to obstruct the IRS from computing, assessing and collecting his income taxes. He stopped filing timely tax returns and allegedly tried to conceal his dental practice income in a variety of ways. The indictment alleges that Fenzell used nominee entities, including River Valley Dental and Brookline Dental Associates Trust, to conceal his dental practice receipts. The indictment also alleges that he used multiple bank accounts in three separate states, including commingled accounts maintained by third parties, to conceal his ownership of funds. According to the indictment, Fenzell used nominees as trustees to make it appear as though other individuals owned and controlled his assets and income. Finally, Fenzell allegedly falsified his delinquent 2006 and 2007 tax returns and made extensive use of cash in order to conceal his fraud.
The indictment further alleges that in 2007, Fenzell, prompted in part by a Massachusetts Department of Revenue investigation, filed delinquent federal tax returns for tax years 2000 through 2005. Those returns allegedly reported that he owed approximately $129,000 in federal income taxes for these years, which resulted in a total of more than $300,000 including interest and penalties. According to the indictment, between 2007 and 2012, Fenzell allegedly sought to evade IRS collection by making his business receipts payable to nominee entities and by using nominee bank accounts in Florida and Rhode Island to divert and hide collectible income and assets. The indictment also alleges that Fenzell failed to file his 2008 through 2011 tax returns at that time required by law, and used nominee entities and accounts in an effort to evade his taxes.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted, Fenzell faces a statutory maximum potential sentence of five years in prison for each count of tax evasion and a statutory maximum potential sentence of three years in prison for the count of corruptly endeavoring to obstruct the IRS.
This case was investigated by IRS-Criminal Investigation Special Agents. It is being prosecuted by Assistant Chief John N. Kane Jr. and Trial Attorney Robert Kennedy of the Tax Division.
Los Estados Unidos Llegan a un Acuerdo Conciliatorio con las Escuelas Públicas de Stamford para Garantizar Igualdad de Oportunidades para Estudiantes Aprendices del Idioma InglésRead the Press Release
WASHINGTON – El Departamento de Justicia de los EE.UU. y la Fiscalía Federal para el Distrito de Connecticut anunciaron que realizaron un acuerdo conciliatorio integral con el Distrito Escolar Público de Stamford en Stamford, Conn., que exige que el distrito ofrezca servicios idiomáticos y otros tipos de apoyo a más de 2,000 estudiantes Aprendices del Idioma Inglés [English Language Learner (ELL)] inscritos en las 20 escuelas del distrito. El acuerdo surge de la revisión de cumplimiento por parte de los Estados Unidos del programa de ELL del distrito bajo la Ley de Igualdad de Oportunidades Educativas de 1974.
El acuerdo requiere que el distrito implemente medidas de amplio alcance para asegurar que los estudiantes ELL tengan igualdad de oportunidades de tener éxito académico en sus programas educativos, comenzando con la identificación y colocación correctas de estudiantes ELL cuando se inscriben en el sistema. Entre otros requisitos, el acuerdo exige que el distrito: ofrezca servicios de aprendizaje del idioma a todos los estudiantes ELL hasta que cumplan con los criterios de conocimientos del inglés del estado; se asegure de que los maestros de estudiantes ELL estén cualificados para brindar estos servicios; obtenga materiales adecuados para estudiantes ELL; monitoree a los estudiantes después de que salgan de los servicios para ELL para asegurarse de que estén participando en las clases de educación general de manera significativa y equitativa; y ponga a disponibilidad de estudiantes ELL con discapacidades servicios idiomáticos adecuados.
"Hoy, las Escuelas Públicas de Stamford tomaron un paso significativo para garantizar el éxito de todos los estudiantes desde el comienzo de su carrera escolar en el distrito", dijo la Secretaria de Justicia Auxiliar Interina de la División de Derechos Civiles Jocelyn Samuels. "Una implementación fiel de este acuerdo conciliatorio asegurará que los estudiantes ELL, al igual que todos los estudiantes del distrito, tengan acceso a maestros cualificados, una enseñanza diseñada para impartir las destrezas necesarias del idioma inglés y recursos dedicados para satisfacer las necesidades particulares de aprendizaje de los estudiantes ELL. Felicitamos al distrito escolar por trabajar en colaboración con los Estados Unidos para desarrollar el plan integral reflejado en este acuerdo".
"Al firmar este acuerdo, el sistema escolar público de Stamford reafirmó su misión de brindarles a todos los niños igualdad de oportunidades para convertirse en ciudadanos productivos, sin importar si tienen conocimientos avanzados de inglés", dijo la Fiscal Federal Deirdre M. Daly del Distrito de Connecticut. "Este acuerdo conciliatorio crea un mapa a seguir para todas las escuelas de Connecticut que ofrece un plan integral para servir eficazmente a todos los estudiantes que todavía no tienen conocimientos avanzados de inglés. Agradecemos a Stamford por trabajar con el Departamento de Justicia para lograr este resultado positivo y esperanzador".
La coacción de la Ley de Igualdad de Oportunidades Educativas es una de las principales prioridades de la División de Derechos Civiles. Existe información adicional sobre la División de Derechos Civiles en el portal de la división website.