District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Justice Department Secures Agreement with Healthcare Facility Services Provider to Resolve Citizenship Status Discrimination ClaimsRead the Press Release
The Justice Department announced today that it secured an agreement with Pennsylvania-based HCSG East LLC and its parent company, Healthcare Services Group Inc. (HCSG), a nationwide provider of housekeeping, laundry and food services for healthcare and nursing facilities. The agreement resolves the department’s determination that HCSG discriminated against non-U.S. citizens with permission to work in the United States when hiring at its Siler City, North Carolina, location, and engaged in unfair practices concerning work authorization documents because of a worker’s status as a non-U.S. citizen.
“Employers cannot erect unlawful discriminatory barriers to work that exclude entire categories of workers with permission to work in the United States, based on citizenship status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold employers accountable when they violate our nation’s federal civil rights laws.”
After conducting an investigation based on a worker’s complaint, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) concluded that HCSG discriminated against a worker by refusing to honor her valid document showing her permission to work because of her citizenship status. IER’s investigation also determined that HCSG had a policy of unlawfully refusing to hire certain workers who had permission to work but were not U.S. citizens or lawful permanent residents — such as persons granted asylum or refugee status by the federal government — at its Siler City location from at least February 2022 to at least December 2022.
Under the settlement, HCSG will pay a civil penalty to the United States, and provide backpay to an affected worker. The agreement also requires HCSG to train its personnel on the Immigration and Nationality Act (INA)’s requirements, revise its employment policies, broadly recruit workers, avoid unnecessary English-language requirements in its job ads and be subject to departmental monitoring. The INA’s anti-discrimination provision prohibits employers from asking for specific or unnecessary documents because of a worker’s citizenship, immigration status or national origin when checking permission to work.
IER is responsible for enforcing the INA’s anti-discrimination provision. This law prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Find more information on how employers can avoid discrimination in recruitment, hiring and employment eligibility verification on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify), or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a live webinar; watch an on-demand presentation; or visit IER’s English and Spanish websites. Sign up for email updates from IER.
El Departamento de Justicia llega a un acuerdo con un proveedor de servicios para centros de atención médica para resolver acusaciones de discriminación por motivos de estatus de ciudadaníaRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con HCSG East LLC, con sede en Pennsylvania, y su empresa matriz, Healthcare Services Group, Inc. (HCSG), un proveedor nacional de servicios de limpieza, lavandería y alimentos para centros de atención médica y enfermería. El acuerdo resuelve la determinación del Departamento que HCSG discriminó a no ciudadanos de los EE. UU. con permiso para trabajar en los Estados Unidos cuando estaba contratando para su sucursal en Siler City, North Carolina, y participó en prácticas injustas relacionadas con los documentos de autorización para trabajar debido al estatus de ciudadanía de una no ciudadana de los EE. UU.
«De acuerdo con la ley, los empleadores no pueden construir barreras discriminatorias para el trabajo que excluyan a categorías enteras de trabajadores con permiso para trabajar en los Estados Unidos, tales como a residentes permanentes legales, en función exclusivamente de su estatus de ciudadanía», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá responsabilizando a los empleadores que vulneren las leyes de derechos civiles de nuestra nación».
Después de llevar a cabo una investigación basada en la queja de una trabajadora, la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), de la División de Derechos Civiles, concluyó que HCSG discriminó a una trabajadora al negarse a respetar su documento válido que mostraba su permiso para trabajar debido a estatus de ciudadanía. La investigación de la IER también determinó que HCSG tenía una política de negarse ilegalmente a contratar a ciertos trabajadores que tenían permiso para trabajar pero que no eran ciudadanos o residentes permanentes legales de los EE. UU., tales como personas con asilo o estatus de refugiado otorgados por el gobierno federal, en su sucursal en Siler City desde al menos febrero del 2022 hasta al menos diciembre del 2022.
En virtud de los términos del acuerdo, HCSG pagará sanciones civiles a los Estados Unidos y le ofrecerá pagos retroactivos a la trabajadora afectada. El acuerdo también requiere que HCSG capacite a su personal en cuanto a los requisitos de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés), que revise sus políticas de empleo, que reclute a trabajadores de manera más amplia, que evite requisitos innecesarios de inglés en sus anuncios de empleo y que se someta a la supervisión departamental. La disposición antidiscriminación de la INA prohíbe a los empleadores solicitar documentos específicos o innecesarios por motivos de la ciudadanía, el estatus migratorio o la nacionalidad de origen de un trabajador a la hora de comprobar su permiso para trabajar.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Esta ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminación en los procesos de contratación, reclutamiento y verificación de la elegibilidad para trabajar en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea en vivo; visualizar una presentación a la carta; o visitar los sitios web de la IER en inglés and español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
Court Orders North Carolina Pharmacy to Pay $500,000 Penalty and Enters Injunction to Prevent Filling Illegal Controlled Substance PrescriptionsRead the Press Release
A federal court ordered an Elkin, North Carolina, pharmacy to pay a $500,000 penalty and enjoined the pharmacy and its pharmacists from dispensing controlled substances, including opioids, without taking steps to help ensure the drugs will not be abused or diverted.
The consent decree resolves a complaint filed by the United States on Nov. 27, which alleged that Elk Pharmacy Inc., Larry Irwin, the pharmacy’s owner and pharmacists Susan Baker, S. Jason Couch, Beth Pence and Lori Wyble filled prescriptions in violation of the Controlled Substances Act (CSA). The complaint alleges that the defendants dispensed prescription opioids while disregarding numerous “red flags” — that is, obvious indications of drug abuse, drug diversion and drug-seeking behavior. For example, according to the complaint, the defendants filled dangerous combination prescriptions; filled prescriptions for long-term, high-dose opioids that exceeded known recommendations for treating pain; filled prescriptions for patients who appeared to be “shopping” for doctors or pharmacies; and filled prescriptions written by prescribers known to be suspected of illegal prescribing, including one doctor who the North Carolina Medical Board had barred from prescribing controlled substances.
“Pharmacists have a duty to help protect consumers from the life-threatening dangers of controlled substance abuse,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The department will continue to work with its law enforcement partners to hold medical professionals accountable when they fail to fulfill that duty.”
“Pharmacists are trained professionals who cannot simply rubber-stamp doctors’ prescriptions,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “They have an independent responsibility to ensure that the prescriptions they fill are for a legitimate medical purpose.”
“The pharmacists at Elk Pharmacy Inc. had a corresponding responsibility, along with the prescribing practitioners, to only dispense prescriptions for a legitimate medical purpose,” said Special Agent in Charge Robert J. Murphy of the DEA Atlanta Division. “The DEA will continue to pursue healthcare providers who are not in compliance with mandatory regulations.”
The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The injunction entered by U.S. District Judge Thomas D. Schroeder for the Middle District of North Carolina prohibits the defendants from filling certain “red flag” prescriptions and requires the defendants to fill other orders only after receiving documentation justifying the prescriptions.
The government was represented by Senior Litigation Counsel Donald R. Lorenzen of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Cassie Crawford for the Middle District of North Carolina, with substantial assistance from DEA Diversion Investigator Heidi Crater and Intelligence Analyst William J. Morris of the DEA Greensboro Resident Office’s Diversion Group.
For more information about the enforcement efforts of the Consumer Protection Branch visit www.justice.gov/civil/consumer-protection-branch.
The claims resolved by the consent decree announced today are allegations only. There has been no determination of liability.
Chinese National and U.S. Legal Permanent Resident Charged for Illegal Scheme to Export Controlled Data and Defraud the Department of DefenseRead the Press Release
Note: View the indictment here.
A four-count indictment was unsealed today charging Hang Sun, also known as Cody Sun, with conspiracy, wire fraud, smuggling, and a violation of the Arms Export Control Act for his role in an illegal scheme to send export-controlled defense-related technical data to China and to unlawfully supply the Department of Defense (DOD) with Chinese-origin rare earth magnets for aviation systems and military items.
The indictment alleges that between January 2012 and December 2018, the defendant conspired to send approximately 70 drawings containing export-controlled technical data to a company located in China without a license from the U.S. government, in violation of the Arms Export Control Act and the International Traffic in Arms Regulations. The technical data drawings were the property of two U.S. companies and related to end-use items for aviation, submarine, radar, tank, mortars, missiles, infrared and thermal imaging targeting systems, and fire control systems for DOD.
The indictment further alleges that Quadrant Magnetics imported rare earth magnets that were smelted and magnetized by a company in China. Quadrant then sold these magnets to two U.S. companies which included them in components sold to DOD for use in the F-16, the F-18, and other defense assets in violation of the Defense Acquisition Regulations System (DFARS). Under the DFARS specialty metal clause, rare earth magnets sold to DOD must be produced in the United States or an approved country. China is not an approved country. Quadrant Magnetics and three of its employees were separately charged in a superseding indictment filed in the Western District of Kentucky on Dec. 5, 2023.
If convicted, Sun faces statutory maximum penalties of up to five years in prison for conspiracy; 20 years in prison for wire fraud; 20 years in prison for exporting technical data without a license; and 10 years in prison for smuggling goods from the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Director Kelly P. Mayo of the Defense Criminal Investigative Service (DCIS), U.S. Attorney Michael A. Bennett for the Western District of Kentucky, Executive Assistant Director Robert Wells of the FBI’s National Security Branch, Special Agent in Charge Karen Wingerd of the IRS Criminal Investigation (IRS-CI) Cincinnati Field Office, and Homeland Security Investigations (HSI) Nashville Special Agent in Charge Rana Saoud made the announcement .
The DCIS, FBI, HSI, IRS-CI, Naval Criminal Investigative Service, and Department of Energy’s Office of Inspector General are investigating the case.
Assistant U.S. Attorneys Joshua Judd and Christopher Tieke for the Western District of Kentucky and Trial Attorneys Alexander Wharton and Leslie Esbrook with the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department and Consumer Financial Protection Bureau Reinforce Federal Protections for Servicemembers in Letter to Financial Services ProvidersRead the Press Release
The Justice Department and Consumer Financial Protection Bureau (CFPB) issued a joint letter today reiterating financial services providers of their responsibility to recognize interest rate protections that exist for servicemembers, recent veterans and their spouses under the Servicemembers Civil Relief Act (SCRA).
Under the SCRA, servicemembers have additional rights and protections because of the unique financial challenges that often emerge as a result of their service. One provision of the SCRA limits the amount of interest that banks, credit cards and other financial services providers may charge on certain financial obligations that the servicemember incurred before military service to no more than 6% per year, including most fees.
“Servicemembers make great sacrifices to serve our nation and protect our democracy,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Financial services providers must ensure that servicemembers are afforded their rights and benefits under the law.”
“Many military families have been hit hard by high interest rates on credit cards, mortgages and auto loans, even though they are entitled to an interest rate cap,” said CFPB Director Rohit Chopra. “Financial firms shouldn’t be price gouging those who serve in uniform.”
Recently, the CFPB has published reports on the rising interest rates in both the credit card and mortgage markets. The CFPB’s 2022 analysis estimated that less than 10% of eligible auto loans and 6% of personal loans to activated members of the National Guard and Reserves were receiving interest rate reductions, resulting in nearly $10 million a year in estimated lost savings. With current interest rates on car loans and even mortgages well above 6% for many borrowers, more servicemembers would now benefit from a reduction than in prior years.
Today’s letter ensures that financial services providers are aware of the provision within the SCRA that protects servicemembers against violations of interest rate benefits. If servicemembers make a proper request, a creditor must forgive and not defer any interest greater than 6%. The letter also includes recommendations for financial services providers to further help servicemembers, such as automatically applying the interest rate cap to all eligible accounts held at that institution if a servicemember invokes protections for a single account.
The Justice Department’s Servicemembers and Veterans Initiative coordinates federal resources to build a comprehensive legal support and protection network focused on serving servicemembers, veterans and their families. Since 2011, the department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. For more information, visit www.justice.gov/servicemembers.
Servicemembers who are covered by this law are likely eligible for military legal assistance and can contact their local legal assistance office for help. See legalassistance.law.af.mil/ for a list of office locations. If servicemembers are not eligible for military legal assistance services, they may request that the Justice Department review their claim by submitting a complaint at civilrights.justice.gov/report/.
The CFPB provides educational resources to military families, monitors complaints and coordinates with federal partners on matters related to consumer protection for the military community. Additionally, the CFPB has authority to enforce the Military Lending Act, as well as the ability to take legal action to address unfair, deceptive or abusive acts or practices related to consumer financial products or services for all members of the public, including servicemembers, under the Consumer Financial Protection Act.
Consumers encountering problems with interest rates can submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372). The CFPB encourages employees who believe their companies have violated federal consumer financial protection laws to send information about what they know to [email protected].
Podiatrist and Patient Recruiter Sentenced for $8.5M Compounding Fraud SchemeRead the Press Release
A podiatrist and a patient recruiter were sentenced to 45 months and 60 months in prison, respectively, and ordered to pay over $7 million in restitution for their roles in a scheme to fraudulently bill TRICARE — the health care program for U.S. service members and their families — for compounded creams that were medically unnecessary and procured through kickbacks and bribes.
According to court documents and evidence presented at trial, Brian Carpenter, 58, of Paradise, Texas, was a podiatrist who signed prescriptions for compounded pain and scar creams for TRICARE beneficiaries to whom he never spoke and whom he never examined or treated. Jerry Lee Hawrylak, 71, of Lake Worth, Texas, recruited Carpenter to sign the prescriptions and recruited TRICARE beneficiaries to accept the medically unnecessary creams. From November 2014 to January 2017, Carpenter, Hawrylak, and others caused the Fort Worth-based pharmacy involved in the conspiracy to fraudulently bill TRICARE approximately $8.5 million for these creams. Evidence at trial included so-called standing orders signed by Carpenter that were backdated so the pharmacy could change prescriptions after the fact to maximize TRICARE reimbursement. The prescriptions Carpenter signed and maintained in his office authorized unlimited refills and listed fake addresses for beneficiaries.
In April 2023, a jury in the Northern District of Texas convicted both Carpenter and Hawrylak of one count of conspiracy to commit health care fraud and six counts of health care fraud.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Acting Special Agent in Charge Ryan Settle of the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS) Southwest Field Office; Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office; Acting Special Agent in Charge P. J. O’Brien of the FBI Dallas Field Office; Special Agent in Charge Casey Howard of the Department of Labor Office of Inspector General (DOL-OIG) Central Regional Office; and Special Agent in Charge Kris Raper of the Department of Veterans Affairs Office of Inspector General (VA-OIG) South Central Field Office made the announcement.
DCIS, HHS-OIG, FBI, DOL-OIG, and VA-OIG investigated the case.
Assistant Chief Brynn Schiess and Trial Attorney Andrea Savdie of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Maryland “Ghost Preparer” Pleads Guilty to Preparing and Filing False Tax Returns for ClientRead the Press Release
A White Plains, Maryland, man pleaded guilty today to preparing and filing a false tax return for a client.
According to court documents and statements made in court, Anthony Judd was a full-time special police officer staffed at the National Archives and Records Administration and a part-time return preparer. Since at least 2013, Judd prepared and filed more than 40 false tax returns for individual clients which reduced the amount of taxes they owed and inflated their refunds. These returns reported losses for businesses that the clients did not actually have, and deductions for expenses — such as transportation and job-related expenses — that the clients did not actually incur. Judd prepared and filed each client’s tax return as a “ghost preparer,” meaning that he did not identify himself as the preparer on the returns. Judd caused a tax loss to the IRS of approximately $484,525.
Judd is scheduled to be sentenced on April 16, 2025. He faces a maximum penalty of three years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Chief Jorge Almonte and Trial Attorney Evan C. Mulbry of the Justice Department’s Tax Division are prosecuting the case.
Justice Department Secures Agreement with Senior Living Provider to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department announced today that it secured a settlement agreement with Watercrest Community Management LLC (Watercrest) resolving the department’s determination that Watercrest violated the Immigration and Nationality Act (INA) at its Myrtle Beach, South Carolina, location. The department determined that Watercrest discriminated against a non-U.S. citizen worker by rejecting her valid document showing her permission to work and asking for additional and unnecessary documents because of her citizenship status.
“Under federal law, employers cannot discriminate based on citizenship status when verifying an individual’s ability to work,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to protecting workers from citizenship status discrimination and removing unnecessary barriers to work in the United States.”
After opening an investigation based on a worker’s complaint, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) determined that Watercrest improperly refused to honor the valid document that a non-U.S. citizen provided to prove her permission to work in the United States. IER’s investigation also revealed that Watercrest asked the worker for additional and unnecessary documents that Watercrest said were required by the commercial Form I-9 software program the company used. Watercrest improperly and repeatedly asked for those documents. Form I-9 is a government form that employers and workers are required to complete that verifies that a worker has the ability to work in the United States.
An employer must follow all legal requirements when verifying someone’s permission to work, and using a software program to electronically complete this process does not guarantee compliance with federal law. Under the INA, employers cannot reject valid documentation or request more documents than necessary when verifying a worker’s permission to work because of a worker’s citizenship or immigration status.
Under the terms of the settlement, if Watercrest encounters difficulty using its software program to complete an employee’s Form I-9, it will complete a physical Form I-9 for that employee rather than reject the employee’s valid documents showing permission to work. Watercrest also will pay a civil penalty to the United States, train its employees on the INA’s anti-discrimination requirements, revise its employment policies and be subject to monitoring by the department.
IER is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee, unfair documentary practices and retaliation and intimidation.
Find more information about how employers can avoid discrimination when verifying someone’s permission to work on IER’s website. Information regarding how to avoid unlawful discrimination and other Form I-9 violations when using commercial or proprietary programs to electronically complete the Form I-9 or participate in E-Verify is also available. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify), or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a live webinar; watch an on-demand presentation; or visit IER’s English and Spanish websites. Subscribe for email updates from IER.
Justice Department Proposes Regulations Implementing the Bipartisan Safer Communities ActRead the Press Release
The Justice Department today announced it has submitted to the Federal Register two notices of proposed rulemaking (NPRM) that, if finalized, will fully implement the Bipartisan Safer Communities Act of 2022 (BSCA), the most significant gun safety legislation in over 30 years.
Following the language of the BSCA, the Firearm Handlers Rule proposes that federal firearm licensees (FFLs), such as gun stores, be allowed to use the National Instant Criminal Background Check System (NICS) to voluntarily conduct employment background checks for certain employees. Current NICS regulations prohibit FFLs from initiating background checks for any purpose other than the transfer of firearms. Under the Firearm Handlers NPRM, FFLs will be permitted to request NICS background checks for current or prospective employees who may handle firearms, ammunition, or related materials. The Firearm Handlers Rule NPRM details the scope of employees eligible for background checks, as well as new NICS statuses proposed for such checks.
The second NPRM, known as the Under-21 Rule, would codify enhanced NICS background check procedures for prospective firearm purchasers under 21 years of age, among other changes. Under the BSCA, NICS is required to conduct enhanced background checks for such under-21 purchasers, by contacting certain state and local entities to determine if a juvenile record, such as a criminal conviction or mental health record, may disqualify the purchaser from possessing a firearm. The FBI began performing these enhanced checks in late 2022 and has denied nearly 1,000 transactions solely because of enhanced outreach.
View the Firearm Handlers NPRM here.
View the Under-21 Rule NPRM here.
Justice Department Announces Recipients of the Seventh Annual Attorney General’s Award for Distinguished Service in Community PolicingRead the Press Release
Attorney General Merrick B. Garland today announced the recipients of the Seventh Annual Attorney General’s Award for Distinguished Service in Community Policing. This prestigious award recognizes law enforcement officers who demonstrate exceptional dedication to strengthening trust, promoting community engagement, and enhancing public safety.
“All 21 of today’s awardees have demonstrated what community-oriented policing looks like in practice,” said Attorney General Garland. “They come from all different parts of the country. They represent communities of all shapes and sizes. Their typical days might not all look the same. But they are united by a deep commitment to protecting their communities.”
The Attorney General’s Award recognizes individual state, local, and Tribal sworn officers, deputies, and troopers for exceptional efforts in community policing. The awarded individuals have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations, or innovations in community policing.
“Today, we stand in the presence of extraordinary individuals who exemplify the very best of what it means to protect and serve,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “We celebrate a remarkable truth: the profound and positive impact that law enforcement officers and deputies have on the communities they serve every single day. These awards honor those who exemplify the very best of the profession and showcases these individuals as pillars of trust, empathy, and unity.”
The 2024 award recipients are:
Category: Criminal Investigations
- Detective Matthew Newbold of the Polk County, Florida, Sheriff’s Office;
- Detective Liz Grant of the Kennewick, Washington, Police Department;
- Detective Tyler Norman of the Salt Lake City, Utah, Police Department; and
- Police Officer Reece Walno of the Spearfish, South Dakota, Police Department.
Category: Field Operations
- Deputy Sheriff Jahmar Robinson of the Palm Beach County, Florida, Sheriff’s Office;
- Lance Corporal Justin Boyd of the Columbia, South Carolina, Police Department; and
- Detective/Community Policing Officer Stephen Leacroy of the La Marque, Texas, Police Department.
Category: Innovations in Community Policing
- Corporal Adrian Maldonado, Deputy James Mackey, Deputy Jason Coker, Deputy Tammy Fox, and Deputy Yanick Exceus of the Palm Beach County, Florida, Sheriff’s Office;
- Detective Edwin Hugh and Police Officer Thomas Joy of the Suffolk County, New York, Police Department;
- Officer Stephen Malandro, Officer Trevor Stamper, and Specialist Todd Nutbrown of the Largo, Florida, Police Department;
- Officer Wesley Griffith and Officer Bill Koehn of the Overland Park, Kansas, Police Department;
- Master Police Officer Thomas Rodriquez of the Manassas City, Virginia, Police Department; and
- Master Officer Shauna Moller of the Manassas City Police Department.
“It is an honor to share the stage with these recipients,” said Director Hugh T. Clements Jr. of the Justice Department’s Office of Community Oriented Policing Services (COPS). “I am inspired by their actions and service.”
The awardees were selected from a nationwide pool of nominees for their outstanding achievements in fostering safer, more inclusive communities.
The Justice Department commends these officers for their service, leadership, and unwavering commitment to their communities. For more information about the awards, visit www.justice.gov.
The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to more than 13,000 state, local, territorial, and Tribal law enforcement agencies to fund the hiring and redeployment of approximately 138,000 officers.
El Departamento de Justicia llega a un acuerdo con un proveedor de viviendas para ancianos que resuelve acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Watercrest Community Management LLC (Watercrest), el cual resuelve la determinación del Departamento de que Watercrest infringió la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) en su sucursal en Myrtle Beach, South Carolina. El Departamento determinó que Watercrest discriminó a una trabajadora no ciudadana de los EE. UU. al rechazar su documento válido que muestra su permiso para trabajar y solicitar documentos adicionales e innecesarios debido a su estatus de ciudadanía.
«En virtud de las leyes federales, los empleadores no pueden discriminar en función del estatus de ciudadanía al verificar el permiso de una persona para trabajar», dijo Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles se compromete a proteger a los trabajadores de la discriminación por motivos de estatus de ciudadanía y a eliminar barreras innecesarias al trabajo en los Estados Unidos».
Después de iniciar una investigación basada en la queja de una trabajadora, la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), de la División de Derechos Civiles, determinó que Watercrest se negó, de forma indebida, a respetar el documento válido que una no ciudadana de los EE. UU. proporcionó para demostrar su permiso para trabajar en los Estados Unidos. La investigación de la IER también reveló que Watercrest pidió a la trabajadora documentos adicionales e innecesarios que Watercrest dijo que eran requeridos por el programa de software comercial que la empresa utilizó para el Formulario I-9. Watercrest solicitó esos documentos de forma incorrecta y repetida. El Formulario I-9 es un formulario gubernamental que los empleadores y trabajadores deben completar y que verifica que un trabajador tiene permiso para trabajar en los Estados Unidos.
Un empleador debe seguir todos los requisitos legales a la hora de verificar el permiso de trabajo de alguien y el uso de un programa de software para completar este proceso electrónicamente no garantiza el cumplimiento con las leyes federales. En virtud de la INA, los empleadores no pueden rechazar documentación válida ni solicitar más documentos de los necesarios al verificar el permiso de trabajo de un trabajador debido a la ciudadanía o el estatus migratorio de tal trabajador.
Según los términos del acuerdo, si Watercrest encuentra dificultades para usar su programa de software para completar el Formulario I-9 de un empleado, completará un Formulario I-9 impreso para ese empleado en lugar de rechazar los documentos válidos del empleado que muestren su permiso para trabajar. Watercrest también pagará una sanción civil a los Estados Unidos, capacitará a sus empleados en cuanto a los requisitos antidiscriminatorios de la INA, revisará sus políticas de empleo y se someterá a supervisión por parte del Departamento.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Obtenga más información sobre cómo los empleadores pueden evitar la discriminación al verificar el permiso de alguien para trabajar en el sitio web de la IER. También hay información disponible sobre cómo evitar la discriminación ilegal y otras infracciones del Formulario I-9 al utilizar programas comerciales o de propiedad exclusiva para completar el Formulario I-9 electrónicamente o participar en E-Verify. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; visualizar una presentación a la carta; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico de la IER.
Peruvian National Extradited for Facilitating Peruvian Call Center Scheme That Threatened and Defrauded Spanish-Speaking U.S. ConsumersRead the Press Release
A resident of Lima, Peru, was extradited to the United States and was arraigned today in a federal court in Miami, where he stands accused of facilitating fraud schemes perpetrated by numerous Peruvian call centers that defrauded victims across the United States, the Justice Department and U.S. Postal Inspection Service (USPIS) announced today.
David Cornejo Fernandez, 36, will face federal wire fraud, extortion and conspiracy charges. Cornejo was arrested on May 17, by Peruvian authorities pursuant to a U.S. extradition request. He has remained incarcerated since that time.
According to the indictment, the defendant provided Internet-based telephone lines, caller-ID spoofing services, and recording capabilities to fraudulent call centers from November 2012 through June 2019. Cornejo provided his co-conspirators in Peru with the technology to place fraudulent and extortionate calls to vulnerable Spanish-speaking individuals in the United States. Cornejo’s co-conspirators falsely told victims that they had been selected to receive a prize, such as a tablet containing an English language course. Many victims expressed interest in receiving the prizes. In later calls, victims were told that they were required to make large payments to receive the prizes. When victims objected, the callers falsely claimed that victims would face severe consequences — including court proceedings, arrest or harm to their immigration status — if they did not pay. The callers impersonated attorneys, court officials, federal agents and police officers to threaten and intimidate victims into making payments.
Cornejo provided his co-conspirators with the software — and at times, the training — to convincingly impersonate government officials and extort payments from victims. Cornejo provided his co-conspirators with the technology to manipulate the phone numbers on victims’ caller IDs, which enabled them to place threatening calls that appeared to be coming from U.S. federal agencies, court officials or law enforcement agencies. Cornejo also placed recordings on his co-conspirators’ inbound phone lines that appeared to be recordings from actual U.S. courts, police departments and federal agencies, including the U.S. Citizenship and Immigration Services (USCIS). These recordings enhanced the apparent legitimacy of the threatening calls and were used to extort payments from vulnerable consumers in the Southern District of Florida and across the United States.
“The Justice Department’s Consumer Protection Branch will pursue and prosecute transnational criminals who seek to take advantage of vulnerable U.S. consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department and U.S. law enforcement will continue to work closely with law enforcement partners across the globe to thwart criminals who defraud and extort U.S. victims from outside the United States. I thank the Republic of Peru, including the Peruvian National Police, for its assistance extraditing this individual to face charges here in the United States.”
“The long arm of the American justice system has no limits when it comes to reaching fraudsters who prey on our nation’s most vulnerable populations, to include the elderly and recent immigrants,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We will not allow transnational criminals to use fear tactics and intimidation to steal money from the public we serve. Individuals who defraud American consumers will be brought to justice, no matter where they are located.”
“Today’s initial appearance of David Cornejo Fernandez is strong evidence of the dedication between the U.S. Postal Inspection Service, the Justice Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the Southern District of Florida who will stop at nothing to bring those who victimize our citizens to justice,” said Inspector in Charge Juan A. Vargas of the USPIS Miami Division. “I want to thank the Republic of Peru and all our law enforcement partners who work tirelessly to combat these transnational schemes that defraud U.S. consumers. Together, we continue to send a strong message, that justice has no borders and this collaboration between countries demonstrates those efforts to preserve the rule of law.”
A six-count federal indictment was filed against the defendant in the U.S. District Court for the Southern District of Florida in February 2023 and was unsealed upon the defendant’s extradition to the United States. The defendant has been charged with conspiracy, wire fraud, and extortion.
If convicted, Cornejo faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
USPIS investigated the case. The Justice Department’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the State Department’s Diplomatic Security Service, the U.S. Marshals Service, the Peruvian National Police and the Peruvian Attorney General’s Office provided critical assistance.
Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorney Carolyn Rice of the Justice Department’s Consumer Protection Branch prosecuted the case.
The Justice Department continues to investigate and bring charges in other similar matters involving threats against Spanish-speaking residents of the United States. If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Consumer complaints may be filed with the FTC at reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
For more information about the Consumer Protection Branch and its fraud enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
High Ranking Tren De Aragua Fugitive from Venezuela Arrested in Tennessee Thanks to Interpol CollaborationRead the Press Release
High Ranking Tren de Aragua Fugitive from Venezuela Arrested in Tennessee Thanks to INTERPOL Collaboration
In a powerful demonstration of international law enforcement coordination, INTERPOL Washington announced the successful apprehension of Luis Alejandro Ruiz Godoy, a high-ranking Tren de Aragua fugitive from Venezuela with a history of violent crimes, including human trafficking, robbery, terrorism, weapons offenses, and escape.
“Through the immediate exchange of critical information and unparalleled cooperation with our international and domestic partners, this dangerous gang leader has been apprehended and will be held accountable for his crimes,” said INTERPOL Washington Acting Director Jeffrey A. Grimming. “Tren de Aragua has emerged as a significant threat to the United States as it infiltrates migration flows from Venezuela. INTERPOL Washington will continue to provide critical intelligence to our police partners across the continent to strengthen border and national security, ensuring these violent gang members find no safe harbor in our country.”
On November 7, INTERPOL Washington received an urgent alert from the INTERPOL Command and Coordination Center (CCC) in Lyon, France, regarding a notice for an international fugitive, issued by the INTERPOL National Central Bureau in Caracas, Venezuela. Ruiz Godoy, identified as a prominent gang leader, had been traveling toward the United States via Mexico.
Despite his entry into the United States prior to the publication of notice, swift action by INTERPOL Washington’s Global Police Services Division (GPS) ensured his location was identified. GPS Investigative Analysts helped trace Ruiz Godoy to a location in Tennessee. On a November 19 joint operation involving INTERPOL Washington, Ruiz Godoy was arrested in Memphis. He is currently in ICE custody.
Deputy Attorney General Announces over 50 Actions to Reduce the Risk of Suicide for Adults in the Department’s CustodyRead the Press Release
Deputy Attorney General Lisa Monaco today announced over 50 new actions the Justice Department will take to reduce the risk of death by suicide of adults who are detained or incarcerated in the custody of the U.S. Marshals Service (USMS) or Federal Bureau of Prisons (FBOP). These actions follow from recommendations developed by a working group of experts, from across the Department, tasked by the Deputy Attorney General with creating a multifaceted approach to reducing the risk of suicide and self-directed violence among those in the Department’s care and custody.
The Justice Department’s mission to uphold the rule of law, keep our country safe, and protect civil rights includes safely and humanely caring for those in its custody. While the Department has long worked to reduce the risk of suicide in the populations it serves, too many individuals die by suicide in federal custody while they await trial or serve a sentence. Even though the suicide mortality rate in federal custody is generally lower than that in local jails and state prisons, the Department must strive to avert every preventable death of an individual in its custody.
As detailed in the “Report on Actions to Reduce the Risk of Suicide by Adults in Federal Custody and Advance a Culture of Safety” issued today, the Deputy Attorney General directed components to take corresponding action to implement the following five objectives to improve suicide prevention policy and protocols for individuals in the Department’s custody:
- Focusing prevention efforts through enhanced information sharing;
- Improving access and delivery of suicide prevention-related care;
- Promoting a healthy culture in facilities for employees and adults in custody;
- Reducing opportunity for and lethality of incidents of self-directed violence; and
- Using data and research to refine suicide prevention policies.
“The Department of Justice is committed to protecting the health and safety of every individual in our custody,” said Deputy Attorney General Monaco. “Today’s reforms — recommended by experts from across the Department’s litigation, law enforcement, and policy operations — will reduce the risk of suicide among adults in federal facilities. Simply put, these measures can help us save lives. I’m grateful not only to our Department experts, but also to the research, law enforcement, judicial, and suicide prevention organizations and advocates that contributed to this effort.”
The report was developed following a comprehensive review by experts from USMS, FBOP, the Civil Rights Division, Executive Office for U.S. Attorneys, National Institute of Justice, Bureau of Justice Statistics, Justice Management Division, Office of Legal Policy, and Office of the Deputy Attorney General. The review also included consultation with the Office of Inspector General, which recently completed an evaluation of inmate deaths at FBOP institutions and has identified institutional safety and security as a critical Department challenge.
In addition to reviewing existing policy, independent research, and data, the Department convened listening sessions with external experts and partners — including:
- Researchers who specialize in suicide prevention in custodial settings;
- Representatives from federal, state, and local law enforcement from across government;
- Representatives from the Administrative Office of the U.S. Courts as well as federal defender and national defense counsel organizations; and
- Suicide prevention and prison reform organizations that advocate on behalf of individuals in the Department’s custody.
Ciudadano peruano extraditado por facilitar una red de centros de atención telefónica que amenazaban y estafaban a consumidores estadounidenses de habla hispanaRead the Press Release
El Departamento de Justicia y el Servicio de Inspección Postal de los Estados Unidos (USPIS, por sus siglas en inglés) anunciaron hoy que un residente de Lima, Perú, fue extraditado a los Estados Unidos y fue procesado ante un tribunal federal de Miami en el día de la fecha, tras ser acusado de facilitar redes de fraude en las que actuaron varios centros de atención telefónica peruanos y que estafaron a víctimas de todos los Estados Unidos.
David Cornejo Fernández, de 36 años y natural de Lima, Perú, enfrentará cargos federales de fraude electrónico, extorsión y conspiración. Las autoridades peruanas detuvieron a Cornejo el 17 de mayo en virtud de una solicitud de extradición estadounidense, momento desde el cual se encuentra detenido.
Según la acusación formal presentada, desde noviembre de 2012 hasta junio de 2019, el acusado suministró líneas telefónicas a través de internet, servicios de suplantación de identidad de llamadas y funciones de grabación a centros de llamadas fraudulentos. Cornejo facilitó a sus cómplices en Perú la tecnología necesaria para hacer llamadas fraudulentas y extorsivas a personas vulnerables de habla hispana en los Estados Unidos. Los cómplices mentían a las víctimas diciéndoles que habían sido elegidas para recibir un premio, por ejemplo, una tablet que incluía un curso de inglés. Muchas víctimas manifestaron su interés en recibir los premios. En llamadas posteriores, se exigía a las víctimas pagos cuantiosos para recibir los premios. Ante la negación de las víctimas, las personas que llamaban afirmaban falsamente que, si no pagaban, afrontarían graves consecuencias, como procesos judiciales, detenciones o perjuicios a su condición migratoria. Los autores de las llamadas fingían ser abogados, funcionarios judiciales, agentes federales y policías para amenazar e intimidar a las víctimas y obligarlas a realizar los pagos.
Cornejo facilitó a sus cómplices el software (y, en ocasiones, la capacitación) para fingir, de manera convincente, que eran funcionarios públicos y extorsionar a las víctimas. Con la tecnología aportada por Cornejo, los cómplices manipularon los números de teléfono de los identificadores de llamadas de las víctimas, lo que les permitió hacer llamadas intimidatorias que simulaban proceder de agencias federales estadounidenses, funcionarios judiciales o autoridades policiales. Cornejo también instaló grabaciones en las líneas telefónicas entrantes de sus cómplices que aparentaban ser grabaciones genuinas de tribunales, departamentos de policía y agencias federales estadounidenses, incluido el Servicio de Ciudadanía e Inmigración de los Estados Unidos (USCIS, por sus siglas en inglés). Estas grabaciones aumentaban la supuesta legitimidad de las llamadas intimidatorias y se utilizaban para extorsionar a consumidores vulnerables del Distrito Sur de Florida y de todos los Estados Unidos.
El fiscal general interino de los Estados Unidos, Brian M. Boynton, jefe de la División Civil del Departamento de Justicia, declaró: «La Subdivisión de Protección del Consumidor del Departamento de Justicia perseguirá y procesará a los delincuentes transnacionales que intenten aprovecharse de los consumidores vulnerables de los Estados Unidos. El Departamento de Justicia y las autoridades policiales estadounidenses seguirán colaborando estrechamente con sus socios policiales en todo el mundo para frustrar a los delincuentes que estafan y extorsionan a víctimas estadounidenses desde fuera de Estados Unidos. Agradezco a la República del Perú y a su policía nacional por ayudarnos en la extradición de esta persona a fin de que afronte los cargos aquí en los Estados Unidos».
El fiscal federal del Distrito Sur de Florida, Markenzy Lapointe, manifestó que «la jurisdicción extraterritorial de la justicia de nuestro país no conoce límites a la hora de encontrar a los estafadores que se aprovechan de los habitantes más vulnerables de nuestra nación, entre ellos, las personas mayores y los nuevos inmigrantes. No permitiremos que los delincuentes transnacionales utilicen tácticas de miedo e intimidación para robar el dinero de los ciudadanos a los que prestamos servicio. Aquellos que defrauden a los consumidores estadounidenses responderán ante la justicia, sin importar dónde se encuentren».
Según las declaraciones del inspector a cargo de la División Miami del USPIS, Juan A. Vargas, «la comparecencia inicial de David Cornejo Fernández en el día de la fecha es una prueba contundente del compromiso conjunto del Servicio de Inspección Postal de los Estados Unidos, la División de Protección al Consumidor del Departamento de Justicia y la Fiscalía del Distrito Sur de Florida, que no se detendrán ante nada para juzgar a quienes atentan contra nuestros ciudadanos. Quisiera agradecer a la República de Perú y a todos nuestros colaboradores en las fuerzas del orden que trabajan sin descanso para combatir estas redes transnacionales que buscan estafar a los consumidores estadounidenses. Juntos seguimos enviando un mensaje firme: la justicia no tiene fronteras y esta colaboración entre países demuestra los esfuerzos por preservar el Estado de derecho».
En febrero de 2023, se presentó una acusación formal federal de seis cargos contra el acusado en el Tribunal de Distrito de los EE. UU. para el distrito Sur de Florida, cuyo contenido fue revelado tras la extradición a los Estados Unidos. Los cargos contra el acusado son de conspiración, fraude electrónico y extorsión. Una acusación formal se limita a alegar que se han cometido delitos; de ser declarado culpable, Cornejo enfrenta una pena máxima de 20 años de prisión. Un juez de un tribunal federal de distrito dictará sentencia después de evaluar las directrices federales para la imposición de penas de los Estados Unidos y demás cuestiones legales.
Todos los acusados se presumen inocentes hasta que se demuestre su culpabilidad más allá de toda duda razonable.
El caso está a cargo de Phil Toomajian, abogado litigante sénior y coordinador de litigios penales transnacionales, junto con la abogada litigante Carolyn Rice, de la División de Protección al Consumidor del Departamento de Justicia.
El USPIS investigó el caso y contó con la ayuda fundamental de la Oficina de Asuntos Internacionales del Departamento de Justicia, la Fiscalía del Distrito Sur de Florida, el Servicio de Seguridad Diplomática del Departamento de Estado, el Servicio de Marshals de Estados Unidos, la Policía Nacional del Perú y el Ministerio Público del Perú.
El Departamento de Justicia continúa investigando y presentando cargos en otros casos similares relacionados con amenazas contra residentes hispanohablantes de los Estados Unidos. Si usted o alguien que conoce es mayor de 60 y ha sido víctima de fraude financiero, puede comunicarse con la línea directa nacional contra el fraude a personas mayores: 1-833-FRAUD-11 (1-833-372-8311), donde tendrá a su disposición profesionales experimentados en este tipo de delitos. La línea directa del Departamento de Justicia, gestionada por la Oficina para las Víctimas de Delitos, puede brindar ayuda personalizada a las víctimas mediane la evaluación de las necesidades de la víctima e identificación de los pasos que se deben seguir. Los coordinadores de casos identificarán los organismos de denuncia adecuados, brindarán información a las víctimas para ayudarlas a presentar la denuncia, las pondrán en contacto directamente con los organismos correspondientes y les brindarán recursos y referencias, según cada caso en particular. El primer paso es presentar una denuncia; esto puede ayudar a las autoridades a identificar a quienes cometen fraude. La denuncia inmediata de las pérdidas económicas por fraude puede aumentar la probabilidad de recuperar las pérdidas. La línea directa está abierta de lunes a viernes de 10.00 a. m. a 6:00 p. m., hora del este, y está disponible en inglés, español y otros idiomas.
Puede consultar la página web de la Iniciativa de Justicia para Personas Mayores para obtener más información sobre las medidas del Departamento a fin de ayudar a las personas mayores estadounidenses. Para obtener más información sobre la División de Protección al Consumidor y las medidas adoptadas para lograr el cumplimiento de la normativa, visite el sitio web www.justice.gov/civil/consumer-protection-branch. Los consumidores pueden presentar las denuncias ante la Comisión Federal de Comercio (FTC, por sus siglas en inglés) en reportfraud.ftc.gov/ o llamando al 877-FTC-HELP. El Departamento de Justicia ofrece una variedad de recursos relacionados con la victimización por fraude de personas mayores a través de su Oficina para las Víctimas de Delitos, a la que se puede acceder en www.ovc.gov
Para más información sobre la División de Protección al Consumidor y sus medidas de lucha contra el fraude, visite su sitio web en www.justice.gov/civil/consumer-protection-branch.U.S. Trustee Program Obtains Denial of Discharge Based on Chapter 7 Debtor’s Failure to Preserve RecordsRead the Press Release
The United States Trustee Program (USTP) recently obtained denial of bankruptcy discharge for a chapter 7 debtor who had not filed tax returns for many years and did not maintain records for his business.
On October 31, the Bankruptcy Court for the Eastern District of Kentucky granted the U.S. Trustee’s motion for summary judgment and denied a discharge to chapter 7 debtor Charbel Joseph, the sole proprietor of an unincorporated construction business. The debtor claimed assets of just over $21,000 and debts of more than $10 million. An investigation by the U.S. Trustee’s Lexington office revealed that the debtor had not filed tax returns in 16 years, did not maintain any bank accounts and operated a construction business on a cash basis. The debtor produced copies of dozens of checks totaling more than $1.4 million payable to him and dated within two years of the bankruptcy filing, but he was unable to account for the disposition of about $1.3 million of those funds.
The U.S. Trustee filed a complaint seeking to bar the debtor’s discharge and, after discovery closed, filed a motion for summary judgment. After oral argument, the court granted the motion over the debtor’s objection and entered judgment in the U.S. Trustee’s favor.
One of the USTP’s core functions is to combat bankruptcy fraud and abuse through civil enforcement actions against debtors who engage in fraud or otherwise abuse the bankruptcy system. When circumstances warrant, the USTP takes action to deny those debtors a discharge. Under section 727(a)(3) of the Bankruptcy Code, debtors are not entitled to a discharge if they unjustifiably conceal, destroy, mutilate, falsify or fail to maintain or preserve records about their financial condition or business transactions.
“The bankruptcy discharge is the key to a fresh start and comes with obligations, including transparency about the debtor’s financial condition” said Director Tara Twomey of the Executive Office for U.S. Trustees. “Although the vast majority of debtors are honest people who simply want to overcome their financial challenges, cases such as this one require action to prevent unfair manipulation of the bankruptcy system.”
The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.
Massachusetts Man Pleads Guilty to Federal Dogfighting ChargesRead the Press Release
A Massachusetts man pleaded guilty today to possessing dogs at his home for participation in a dogfighting venture.
John D. Murphy, 51, of Hanson, pleaded guilty to nine counts of possessing animals for use in an animal fighting venture, in violation of the federal Animal Welfare Act. Murphy was indicted by a federal grand jury in March.
“Dogfighting is a sadistic crime which subjects animals to cruel mistreatment for entertainment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “We commend the investigators and prosecutors who worked collaboratively to bring this case to justice.”
“Mr. Murphy’s actions represent the calculated cruelty and inhumanity that dogfighting embodies – a barbaric practice that exploits and harms animals for entertainment and profit. Today’s conviction brings an end to Mr. Murphy’s reign of brutality and sends a clear message: dogfighting is a federal crime, and those who engage in this inhumane conduct will face justice,” said U.S. Attorney Joshua S. Levy for the District of Massachusetts. “This case marks the first time federal criminal charges have been brought in the District of Massachusetts under the Animal Welfare Act, underscoring the seriousness of these crimes and our commitment to holding those who engage in this abhorrent conduct accountable. We urge anyone with knowledge of animal fighting or abuse to come forward and report it.”
In 2021, Murphy was identified on recorded calls discussing dogfighting with a New York-based dogfighting target. A subsequent search of his Facebook accounts revealed Murphy’s years-long involvement in dogfighting. Murphy communicated with other dogfighters via Facebook and belonged to private dogfighting Facebook groups.
Photos and videos found on Murphy’s Facebook account showed dogs restrained and showing injuries consistent with that of dogfighting. A search of Murphy’s Hanson residence in June 2023 discovered numerous items associated with possessing dogs for participation in an animal fighting venture like various breeding, training and medical supplies and dogfighting materials.
In March, the United States also filed a civil forfeiture complaint against 13 pit bull-type dogs, seized in June 2023 from Murphy’s residence and another residence in Townsend, Massachusetts, that were possessed for participation in an animal fighting venture. In September and October, the court ordered all dogs be forfeited to the United States. The dogs are currently in the custody of the U.S. Marshals Service (USMS) being cared for by a USMS-contractor.
U.S. Senior District Court Judge William G. Young for the District of Massachusetts scheduled sentencing for Feb. 27, 2025. For each of the nine charges, Murphy faces a maximum penalty of up to five years in prison, three years of supervised release and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
To report animal fighting crimes, please contact your local law enforcement or the Department of Agriculture’s Office of Inspector General complaint hotline at: usdaoig.oversight.gov/hotline or 1-800-424-9121.
The Department of Agriculture’s Office of Inspector General investigated the case. Valuable assistance was provided by the Massachusetts State Police; Animal Rescue League of Boston’s Law Enforcement Division; Homeland Security Investigations; U.S. Customs and Border Protection; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Coast Guard Investigative Service; USMS; Maine State Police; New Hampshire State Police; Massachusetts Office of the State Auditor; Rhode Island Society for the Prevention of Cruelty to Animals; the Massachusetts Society for the Prevention of Cruelty to Animals and the Hanson, Boston and Acton, Massachusetts, Police Departments.
Senior Trial Attorney Matthew T. Morris of ENRD’s Environmental Crimes Section and Assistant U.S. Attorneys Danial E. Bennett and Kaitlin J. Brown for the District of Massachusetts are prosecuting the case. Carol E. Head, Chief of the Asset Recovery Unit for the District of Massachusetts, and Trial Attorney Caitlyn F. Cook of ENRD’s Wildlife and Marine Resources Section are prosecuting the civil forfeiture case.
Justice Department Secures Agreement with Florida Restaurant Group to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department announced today that it secured an agreement with Anna Maria Oyster Bar Inc., a restaurant group based in Bradenton, Florida. The agreement resolves the department’s determination that the restaurant group routinely discriminated against lawful permanent residents when checking their permission to work in the United States.
“It is unlawful for employers to reject valid documents from lawful permanent residents and require them to present a specific document because of their citizenship status when checking their permission to work,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Unnecessary and discriminatory obstacles in the onboarding process can harm those who wish to lawfully participate in our economy and deprive employers of their talents.”
After conducting an investigation based on a worker’s complaint, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) concluded that Anna Maria Oyster Bar had required a specific document — a Permanent Resident Card — from a worker to prove her citizenship status, even though she had already presented sufficient proof of her permission to work. IER also found that the restaurant group’s treatment of this worker was part of a larger practice of requesting documents issued by the Department of Homeland Security, typically Permanent Resident Cards, from lawful permanent residents to prove their citizenship status, which lasted from at least March 1, 2023, to at least Sept. 1, 2023.
U.S. citizens, U.S. nationals, lawful permanent residents, those granted asylum or refugee status and other non-U.S. citizens with permission to work may legally work in the United States if they can prove their identity and permission to work.
As explained in the department’s new fact sheet, lawful permanent residents (sometimes referred to as “green card holders”) can use different types of documentation to prove their permission to work. The Immigration and Nationality Act (INA)’s anti-discrimination provision prohibits employers from asking for specific or unnecessary documents because of a worker’s citizenship, immigration status or national origin. Employers must allow workers to present whatever acceptable documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine and to relate to the worker.
Under the terms of the settlement, Anna Maria Oyster Bar will pay a civil penalty to the United States, train its employees on the INA’s requirements, revise its employment policies and be subject to departmental monitoring.
IER is responsible for enforcing the INA’s anti-discrimination provision. This law prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
IER’s website has more information on lawful permanent residents’ rights under the INA and how employers can avoid unlawful discrimination when verifying someone’s permission to work. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify), or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a live webinar; watch an on-demand presentation; or visit IER’s English and Spanish websites. Sign up for email updates from IER.
El Departamento de Justicia llega a un acuerdo con un grupo de restaurantes de la Florida que resuelve acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Anna Maria Oyster Bar Inc., un grupo de restaurantes con sede en Bradenton, Florida. El acuerdo resuelve la determinación del Departamento que el grupo de restaurantes discriminó de forma rutinaria a los residentes legales permanentes al verificar su permiso para trabajar en los Estados Unidos.
«Es ilegal para un empleador rechazar documentos válidos de residentes permanentes legales y requerir que presenten un documento específico debido a su estatus de ciudadanía a la hora de comprobar su permiso para trabajar», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Los obstáculos innecesarios y discriminatorios en el proceso de incorporación pueden dañar a aquellos que desean participar legalmente en nuestra economía y privar a los empleadores de su talento».
Después de llevar a cabo una investigación basada en la queja de un trabajador, la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), de la División de Derechos Civiles, concluyó que Anna Maria Oyster Bar había requerido un documento específico, una tarjeta de residente permanente, de una trabajadora para demostrar su estatus de ciudadanía, a pesar de que ya había presentado suficientes pruebas de su permiso para trabajar. La IER también descubrió que el tratamiento de esta trabajadora por parte del grupo de restaurantes formaba parte de una práctica más amplia de solicitar documentos emitidos por el Departamento de Seguridad Nacional, normalmente tarjetas de residencia permanente, de residentes permanentes legales para demostrar su condición de ciudadanía, que duró desde al menos el 1 de marzo del 2023 hasta al menos el 1 de septiembre del 2023.
Ciudadanos de los EE. UU., nacionales de los EE. UU., residentes permanentes legales, aquellos con asilo o estatus de refugiado y otros no ciudadanos de los EE. UU. que disponen de permiso para trabajar pueden trabajar legalmente en los Estados Unidos si pueden demostrar su identidad y permiso para trabajar.
Como se explica en la nueva hoja informativa del Departamento, los residentes legales permanentes (a veces denominados «titulares de tarjetas verdes») pueden utilizar diferentes tipos de documentación para demostrar su permiso para trabajar. La disposición antidiscriminatoria de la Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) prohíbe a los empleadores solicitar documentos específicos o innecesarios por motivos de la ciudadanía, el estatus migratorio o la nacionalidad de origen de un trabajador. Los empleadores deben permitir que los trabajadores presenten cualquier documentación aceptable que los trabajadores mismos elijan y no pueden rechazar documentación válida que parezca razonablemente genuina y relacionada con el trabajador.
Conforme los términos del acuerdo, Anna Maria Oyster Bar pagará una sanción civil a los Estados Unidos, capacitará a sus empleados en cuanto a los requisitos antidiscriminatorios de la INA, revisará sus políticas de empleo y se someterá a supervisión por parte del Departamento.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Esta ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
El sitio web de IER tiene más información sobre los derechos de residentes permanentes legales en virtud de la INA y cómo los empleadores pueden evitar la discriminación ilegal al verificar el permiso para trabajar de alguien. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito o visualizar una presentación a la carta o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
Owner of Florida Labor-Staffing Companies Pleads Guilty to Tax Fraud and Money LaunderingRead the Press Release
A Ukrainian national pleaded guilty today to conspiracy to defraud the United States and conspiracy to commit money laundering.
According to court documents and statements made in court, between August 2007 and August 2021, Oleg Oliynyk and others owned and operated a series of labor-staffing companies in South Florida, including Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC and Tropical City Group LLC. Through these staffing companies, Oliynyk and others facilitated the employment of non-resident aliens in the hospitality industry who were not authorized to work in the United States and helped evade the assessment and collection of federal income and employment taxes. Oliynyk and his codefendants also laundered more than $11 million of proceeds from their scheme.
A sentencing hearing will be set at a later date. Oliynyk faces a maximum penalty of 20 years in prison for the conspiracy to commit money laundering charge and a maximum penalty of five years in prison for the conspiracy to defraud the United States charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Markenzy Lapointe for the Southern District of Florida made the announcement.
Homeland Security Investigations and IRS Criminal Investigation are investigating the case.
Senior Litigation Counsel Sean Beaty and Trial Attorneys Matthew B. Hicks and Wilson R. Stamm of the Tax Division and Assistant U.S. Attorney Christopher Clark for the Southern District of Florida are prosecuting the case.
Justice Department Secures Agreement with Trailer Manufacturer to Resolve Immigration-Related Discrimination Claims and Announces a New Resource for Lawful Permanent ResidentsRead the Press Release
The Justice Department announced today that it secured a settlement agreement with Great Dane LLC (Great Dane) resolving the department’s determination that Great Dane’s plant in Wayne, Nebraska, violated the Immigration and Nationality Act (INA).
The department determined that Great Dane discriminated against non-U.S. citizens by asking them for additional and unnecessary documents, or information from those unnecessary documents, to prove their permission to work. The department also announced the release of a new fact sheet to help lawful permanent residents learn about discrimination protections under the INA.
“It is unlawful for employers to add discriminatory barriers in the hiring process because of a worker’s citizenship or immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to ensuring that workers enjoy the protections the law provides, including where barriers to employment are discriminatory.”
After opening an investigation based on a complaint from a lawful permanent resident, the department determined that Great Dane asked non-U.S. citizens, including the worker who submitted the complaint, to provide additional and unnecessary documents to prove their permission to work, because of their immigration status. For example, the department determined that even though the worker who filed the initial complaint provided sufficient information and documents to prove his permission to work — his state ID and unrestricted Social Security card — the company nevertheless wanted him to provide additional information from a Permanent Resident Card. The department determined that Great Dane failed to hire non-U.S. citizens who were unable to comply with the company’s unnecessary requests. Finally, the department also determined that Great Dane discriminated against non-U.S. citizens already working for the company by asking them for documents to prove their ongoing permission to work, even though it was unnecessary.
Lawful permanent residents (sometimes referred to as “green card holders”) can use different types of documentation to prove their permission to work. Lawful permanent residents do not have to show a Permanent Resident Card (or “green card”) or prove their immigration status when demonstrating their permission to work. As explained in the department’s new fact sheet, the INA protects lawful permanent residents from discrimination when an employer is verifying their permission to work. Employers cannot limit the valid documentation that a lawful permanent resident may show when verifying their ability to work. The fact sheet also explains how lawful permanent residents can get help if they are being discriminated against.
Under the terms of the settlement, the company will pay $218,000 in civil penalties to the United States and establish a backpay fund of $218,000 to compensate victims of the company’s discriminatory practices, including those whom it failed to hire or who lost work because they could not comply with the company’s discriminatory document demands. The agreement also requires Great Dane to train its personnel on the INA’s anti-discrimination requirements, revise its employment policies and be subject to departmental monitoring and reporting requirements. People who think they may qualify for back pay under the settlement should contact the Civil Rights Division at [email protected].
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the antidiscrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; or retaliation and intimidation.
IER’s website has more information on lawful permanent residents’ rights under the INA and how employers can avoid unlawful discrimination when verifying someone’s permission to work. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s free hotline at 1-800-255-7688 for workers or at 1-800-255-8155 for employers (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected]; or visit IER’s English and Spanish websites. Sign up for email updates from IER.
El Departamento de Justicia llega a un acuerdo con un fabricante de remolques para resolver acusaciones de discriminación relacionadas a inmigración y anuncia un nuevo recurso para residentes permanentes legalesRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Great Dane LLC (Great Dane) que resolvió la determinación del Departamento de que la planta de Great Dane en Wayne, Nebraska, vulneró la ley de Inmigración y Nacionalidad. El Departamento determinó que Great Dane discriminó a no ciudadanos de los EE. UU. al pedirles documentos adicionales e innecesarios, o información de esos documentos innecesarios, para demostrar su permiso para trabajar. El Departamento también anunció el lanzamiento de una nueva hoja informativa para ayudar a los residentes permanentes legales a conocer las protecciones contra la discriminación en virtud de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).
«Es ilegal para los empleadores crear barreras discriminatorias durante el proceso de contratación debido al estatus de ciudadanía del trabajador», comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia se compromete a garantizar que los trabajadores disfruten de las protecciones que les proporciona la ley, incluyendo donde las barreras al empleo son discriminatorias».
Después de iniciar una investigación basada en una queja de un residente permanente legal, el Departamento determinó que Great Dane preguntó a no ciudadanos de los EE. UU., incluido el trabajador que presentó la queja, para proporcionar documentos adicionales e innecesarios para demostrar su permiso para trabajar, debido a su estatus migratorio. Por ejemplo, el Departamento determinó que, aunque el trabajador que presentó la queja inicial proporcionó suficiente información y documentos para demostrar su permiso para trabajar, su carné de identidad estatal y su tarjeta de Seguro Social sin restricciones, la empresa, sin embargo, quería que proporcionara información adicional de una tarjeta de residente permanente. El Departamento determinó que Great Dane no contrató a no ciudadanos de los EE. UU. que no pudieron cumplir con las solicitudes innecesarias de la empresa. Por último, el Departamento también determinó que Great Dane discriminó a no ciudadanos de los EE. UU. que ya trabajan para la empresa al pedirles documentos que demostrasen su permiso continuo para trabajar, aunque fuera innecesario.
Los residentes permanentes legales (a veces denominados «titulares de tarjetas verdes») pueden utilizar diferentes tipos de documentación para demostrar su permiso para trabajar. Los residentes permanentes legales no tienen que mostrar una tarjeta de residente permanente (o «tarjeta verde») ni probar su estatus migratorio al demostrar su permiso para trabajar. Como se explica en la nueva hoja informativa del Departamento, la INA protege a los residentes legales permanentes de la discriminación cuando un empleador verifica su permiso para trabajar. Los empleadores no pueden limitar la documentación válida que un residente permanente legal puede mostrar al verificar su permiso para trabajar. La hoja informativa también explica cómo los residentes permanentes legales pueden obtener ayuda si se les discrimina.
En virtud de los términos del acuerdo, la empresa pagará $218,000 en sanciones civiles a los Estados Unidos y establecerá un fondo de pagos retroactivos de $218,000 para compensar a las víctimas de las prácticas discriminatorias de la empresa, incluidas aquellas a las que no contrató o que perdieron trabajo porque no pudieron cumplir con las solicitudes documentales discriminatorias de la empresa. El acuerdo también requiere que Great Dane capacite a su personal en cuanto a los requisitos antidiscriminatorios de la INA, que revise sus políticas de empleo y que se someta a los requisitos de supervisión y declaración departamentales. Cualquier persona que crea que puede calificar para los pagos retroactivos en virtud del acuerdo debe enviar un correo electrónico a la IER a la siguiente dirección de correo electrónico: [email protected]
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División de Derechos Civiles, es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
El sitio web de IER tiene más información sobre los derechos de residentes permanentes legales en virtud de la INA y cómo los empleadores pueden evitar la discriminación ilegal al verificar el permiso para trabajar de alguien. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 o para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea en línea en vivo o visualizar una presentación a la carta; enviar un correo electrónico a [email protected]; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
Michigan Woman Convicted of $1.4M Health Care Kickback SchemeRead the Press Release
A Michigan woman was convicted today for her role in a conspiracy to defraud the United States and receive illegal health care kickbacks.
According to court documents and evidence presented at trial, Mary Smettler-Bolton, 71, of Oakland County, referred Medicare beneficiaries to several Metro Detroit home health companies in exchange for hundreds of thousands of dollars in kickbacks paid by the owners and operators of the home health companies. Over the course of four years, Smettler-Bolton and her co-conspirators caused over $1.4 million of loss to Medicare.
Smettler-Bolton was convicted of one count of conspiracy to defraud the United States and receive illegal health care kickbacks and one count of violating the federal Anti-Kickback Statute. She is scheduled to be sentenced on March 3, 2025, and faces a maximum penalty of five years in prison on the conspiracy count and a maximum penalty of 10 years in prison on the kickback count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office; and Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI Detroit Field Office and HHS-OIG investigated the case.
Trial Attorney Ryan Elsey and Assistant Chief Shankar Ramamurthy of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Justice Department's Procurement Collusion Strike Force Commemorates Fifth Anniversary with Law Enforcement PartnersRead the Press Release
Yesterday, the Justice Department’s Antitrust Division and Procurement Collusion Strike Force (PCSF) commemorated the PCSF’s fifth anniversary in Washington with a celebration involving law enforcement partners and key stakeholders from across the government. Assistant Attorney General (AAG) Jonathan Kanter, PCSF Director Daniel Glad and other department officials were joined by representatives from among the PSCF’s 12 national law enforcement partners and 25 U.S. Attorneys’ Offices and other key stakeholders from the law enforcement and oversight community.
The PCSF fifth anniversary event featured remarks from AAG Kanter, who noted the PCSF’s growing impact and the importance of criminal antitrust enforcement. Director Glad offered welcome remarks recounting the PCSF’s history, mission and future. Department of Interior Inspector General and Council of the Inspectors General on Integrity and Efficiency Chair Mark Greenblatt highlighted the effectiveness of the PCSF’s collaborative model and that, even in light of its substantial gains over the last five years, more of the PCSF’s work is needed to combat the growing risks in contract and grant oversight.
The anniversary featured several panels composed of PCSF partner agency representation. Acting Department of Commerce Inspector General Jill Baisinger and U.S. Postal Service Inspector General Tammy Hull discussed present and near-future procurement oversight threats that their agencies are facing, and the mitigation tools they have deployed to address those threats. Expert panelists from Department of Defense Office of Inspector General (OIG) and the U.S. Agency for International Development OIG discussed global and international considerations. The anniversary concluded with a panel discussion featuring expert panelists from the Department of Transportation OIG, General Services Administration OIG and Environmental Protection Agency OIG, who discussed data, analytics and collaboration driving future PCSF enforcement efforts.
The PCSF is the Justice Department’s coordinated, joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact procurement, grant and program funding at all levels of government — federal, state and local.
Since its inception in November 2019, the PCSF has opened more than 145 criminal investigations and trained more than 39,000 people. In that time, the PCSF and Antitrust Division have obtained over 60 guilty pleas and trial convictions and have investigated and prosecuted over 85 companies and individuals involving over $575 million worth of government contracts and contract kickbacks.
AAG Kanter’s remarks can be viewed here.
Director Glad’s remarks can be viewed here.
Chair Greenblatt’s remarks can be viewed here.
AAG Jonathan Kanter delivers remarks at the Justice Department’s PCSF Fifth Anniversary U.S. Postal Service Inspector General Tammy Hull and Acting Department of Commerce Inspector General Jill Baisinger speak during the Justice Department’s PCSF Fifth Anniversary Department of Interior Inspector General and Council of the Inspectors General on Integrity and Efficiency Chair Mark Greenblatt delivers remarks at the Justice Department’s PCSF Fifth Anniversary Representatives from the Department of Defense Office of Inspector General (OIG) and the U.S. Agency for International Development OIG discuss global considerations during the Justice Department’s PCSF Fifth Anniversary Representatives from the Department of Transportation OIG, General Services Administration OIG, and Environmental Protection Agency OIG, discuss data, analytics, and collaboration during the Justice Department’s PCSF Fifth Anniversary PCSF Director Dan Glad delivers closing remarks at the Justice Department’s PCSF Fifth AnniversaryJustice Department Announces an Organizational Assessment of the Marysville, Kansas Police Department under the COPS Office’s Collaborative Reform InitiativeRead the Press Release
The Justice Department’s Office of Community Oriented Policing Services (COPS Office) today announced that it will provide an Organizational Assessment of the Marysville, Kansas Police Department through its Collaborative Reform Initiative. This is a voluntary program that is offered at the request of law enforcement agencies that are seeking to improve their services and operations. Over the next year, the Marysville Police Department will work in partnership with the COPS Office Collaborative Reform Initiative team to focus on:
- Community Policing
- Workforce Development
- Strategic Planning
- Employee Wellness
- Technology, Data, and Organizational Learning
“Requesting an Organizational Assessment review shows that an agency is being pro-active in its efforts to create the best department possible to serve the needs of its community,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “I applaud the Marysville Police Department for taking this important step, and the Department looks forward to working with them.”
“It is only by examining what’s going well, and what could be improved upon, that an agency can make strides to building a department the community wants and deserves,” said Director Hugh T. Clements Jr. of the COPS Office. “Ultimately, it’s the members of the Marysville Police Department and the Marysville community who will be the beneficiaries of this work.”
Regular updates on the team’s work with the Marysville Police Department will be provided at: www.cops.usdoj.gov/active-oa-site-marysville-ks-police-department as part of the transparency and public accountability of this new Organizational Assessment effort.
The Collaborative Reform Initiative encompasses three programs offering expert services to state, local, territorial, and Tribal law enforcement agencies: the Collaborative Reform Initiative Technical Assistance Center, Critical Response, and Organizational Assessment programs (complete details of these programs can be found at www.cops.usdoj.gov/collaborativereform). Managed out of the COPS Office, this continuum of services is designed to build trust between law enforcement agencies and the communities they serve; improve operational efficiencies and effectiveness; enhance officer safety and wellness; build agencies’ capacity for organizational learning and self-improvement; and promote community policing practices nationwide.
The Organizational Assessment program provides the most intensive form of technical assistance on the continuum, involving in-depth assessments and long-term assistance to improve the fairness, effectiveness, and efficacy of agency operations that build trust with communities. A continual assessment and implementation process ensures that time and resources are used to focus on identifying areas for improvement, reinforcing agency strengths, and assisting with the implementation of improvements expeditiously. At the same time, the process provides transparency and accountability with routine public reporting and community input. Each engagement will be supported by a multidisciplinary assessment team composed of subject matter experts with diverse experience and perspectives, including in law enforcement, community engagement, research and evaluation, program management and organizational reform.
The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to more than 13,000 state, local, territorial, and Tribal law enforcement agencies to fund the hiring and redeployment of approximately 138,000 officers.
Justice Department Announces an Organizational Assessment of the Maryland Natural Resources Police under the COPS Office’s Collaborative Reform InitiativeRead the Press Release
The Justice Department’s Office of Community Oriented Policing Services (COPS Office) today announced that it will provide an Organizational Assessment of the Maryland Natural Resources Police (NRP) through its Collaborative Reform Initiative. This is a voluntary program that is offered at the request of law enforcement agencies that are seeking to improve their services and operations. Over the next year, NRP will work in partnership with the COPS Office Collaborative Reform Initiative team to focus on:
- Community Policing
- Workforce Development
- Strategic Planning
- Employee Wellness
- Technology, Data, and Organizational Learning
“The work of law enforcement encompasses a wide range of duties and responsibilities, but there are key and standard tenets to building all successful agencies,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “I applaud the Maryland Natural Resources Police for voluntarily taking on the work of applying these tenets to its operation.”
“Every law enforcement agency can benefit by taking an in-depth look at the work of its department and seeing what’s working and where there are opportunities for improvement,” said Director Hugh T. Clements Jr. of the COPS Office. “Focusing on key areas such as workforce development and employee wellness are critical for an agency to continue to grow and improve.”
Regular updates on the team’s work with the NRP will be provided at www.cops.usdoj.gov/active-oa-site-maryland-dnr as part of the transparency and public accountability of this new Organizational Assessment effort.
The Collaborative Reform Initiative encompasses three programs offering expert services to state, local, territorial, and Tribal law enforcement agencies: the Collaborative Reform Initiative Technical Assistance Center, Critical Response, and Organizational Assessment programs (complete details of these programs can be found at www.cops.usdoj.gov/collaborativereform). Managed out of the COPS Office, this continuum of services is designed to build trust between law enforcement agencies and the communities they serve; improve operational efficiencies and effectiveness; enhance officer safety and wellness; build agencies’ capacity for organizational learning and self-improvement; and promote community policing practices nationwide.
The Organizational Assessment program provides the most intensive form of technical assistance on the continuum, involving in-depth assessments and long-term assistance to improve the fairness, effectiveness, and efficacy of agency operations that build trust with communities. A continual assessment and implementation process ensures that time and resources are used to focus on identifying areas for improvement, reinforcing agency strengths, and assisting with the implementation of improvements expeditiously. At the same time, the process provides transparency and accountability with routine public reporting and community input. Each engagement will be supported by a multidisciplinary assessment team composed of subject matter experts with diverse experience and perspectives, including in law enforcement, community engagement, research and evaluation, program management and organizational reform.
The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to more than 13,000 state, local, territorial, and Tribal law enforcement agencies to fund the hiring and redeployment of approximately 138,000 officers.
U.S. Trustee Program Prevails on Motion to Dismiss Nine Related Cases for Lack of Good FaithRead the Press Release
The United States Trustee Program (USTP) recently obtained dismissal of nine related bankruptcy cases involving a chain of fitness businesses that lacked a good-faith basis for seeking bankruptcy relief.
On October 2, the Bankruptcy Court for the District of Kansas entered an order dismissing the cases of Blush Bootcamp LLC and eight affiliates based on a motion filed by the USTP’s office in Wichita, Kansas. The debtors and their owners engaged in a tangled web of transfers both before and after bankruptcy, using some of the companies’ income to cover others’ debts and commingling funds across multiple accounts without regard to corporate formalities. Some of the companies had stopped operating, leaving no business to rehabilitate. Some entities lacked insurance to protect their assets, and none had workers’ compensation coverage. And the owners—a married couple—each drew a monthly salary of $12,500 out of the bankrupt companies even though they also operated two cash-positive entities that did not file for bankruptcy.
The debtors filed their cases under the streamlined provisions of subchapter V, which provides eligible small businesses with a more flexible, efficient and cost-effective path through chapter 11. The USTP plays an integral role in administering subchapter V cases in accordance with the Bankruptcy Code. This includes seeking dismissal or conversion of cases to chapter 7 liquidations when warranted, and raising objections to eligibility and confirmation of a plan of reorganization when appropriate.
“Subchapter V was designed to help debtors remain in business, so long as they abide by the Bankruptcy Code’s requirements,” said Director Tara Twomey of the Executive Office for U.S. Trustees. “Unfortunately, these entities did not follow the requirements and there was no reasonable likelihood of rehabilitation.”
The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.
Two Men Sentenced for Illegally Smuggling Juvenile Eels from Puerto RicoRead the Press Release
Two Dominican nationals were sentenced for smuggling juvenile American eels from Puerto Rico.
On Nov. 14, U.S. District Court Judge Aida M. Delgado-Colon for the District of Puerto Rico sentenced Simon De la Cruz Paredes, 56, to 24 months in prison followed by two years of supervised release. Today, Judge Delgado-Colon sentenced Saul Enrique José De la Cruz, 39, to 24 months in prison followed by two years of supervised release.
According to court documents, Paredes and De la Cruz spent months harvesting juvenile American eels (Anguilla rostrata), also known as glass eels, in the rivers around Levittown, Puerto Rico. Once they caught the eels, the defendants kept them alive with an oxygenation system while a boat was built to travel back to the Dominican Republic. On Feb. 21, both defendants left Puerto Rico bound for the Dominican Republic in a boat that contained 30 kilograms of glass eels, a handgun and 850 rounds of ammunition. Paredes and De La Cruz stated that they intended to sell the eels in the Dominican Republic, after which the fish would be shipped to Asia.
The U.S. Coast Guard (USCG) intercepted Paredes and De la Cruz about 40 miles off the coast of Puerto Rico. The men refused to stop their boat and USCG was obligated to neutralize the vessel’s engines, after which the defendants were arrested and indicted.
Paredes and De la Cruz both previously pleaded guilty to smuggling the eels in violation of 18 U.S.C. § 554 and trafficking in illegal wildlife in violation of the Lacey Act. De la Cruz also pleaded guilty to failing to heave to when ordered to stop by the Coast Guard. According to court documents, the juvenile eels were worth at least $132,000 and would be worth more than $1 million once raised to adulthood.
“Eels are a highly sought-after food source, including for sushi,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Juvenile or glass eels are key to this food production. Unfortunately, they are often illegally harvested, which has already decimated their numbers in Japan and Europe, and which is also having a profound effect on the American eel population. That is why we will vigorously prosecute individuals or entities caught illegally harvesting glass eels.”
“The illegal trafficking of wildlife threatens the survival of many endangered species,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “The U.S. Attorney’s Office has made it a priority to protect our natural resources. The environmental protection laws protect the animals, resources, and habitats within Puerto Rico.”
“American juvenile eels can be traded legally, but they are also subject to poaching and international trafficking,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service’s Office of Law Enforcement. “These defendants would clearly stop at almost nothing in pursuit of their illegal activities, which harm natural resources and economies. The sentencing of these individuals highlights the effectiveness and persistence of investigators, who work tirelessly to seek justice.”
“We work closely with our joint enforcement partners to detect and identify potential illegal activity related to the Lacey Act,” said Acting Assistant Director Paige Casey of the National Oceanic and Atmospheric Administration (NOAA)’s Office of Law Enforcement Southeast Division. “Through our partnerships, we are able to successfully prosecute and convict individuals, such as in this case, who illegally harvest and traffic marine wildlife that could disrupt our fair trade market.”
“These two convictions highlight the collective and unwavering resolve of our Coast Guard and sister U.S. law enforcement agencies to protect the living marine resources and hold transnational smuggling organizations accountable,” said Capt. Luis J. Rodriguez, Commander of USCG’s Sector San Juan. “As one of our most sensitive missions, we must continue to generate awareness of the impacts smugglers are having in eradicating eel populations around the globe. Now, the juvenile American eel population is being targeted at home, we must remain vigilant as a service and a nation to this threat.”
The American eel is a species of fish native to the Eastern United States and the Caribbean. The American eel is a “catadromous” species, meaning that it reproduces in saltwater systems and matures in fresh water (riverine) systems. American eel eggs hatch in the Atlantic Ocean’s Sargasso Sea, after which ocean currents carry the juvenile eels along the eastern American coast. Tidal fluctuations then wash the eels into freshwater river systems, including the rivers of Puerto Rico, after which they migrate upstream. Once a glass eel matures, it will return to the Sargasso Sea in order to spawn.
Because American eels have not been successfully bred in captivity, the commercial market is concentrated on the juvenile glass eel stage. Once captured, glass eels are typically sold to aquaculture facilities in Asia, where they are raised into adults and sold for foods including for sushi as unagi. The fishing pressure on juvenile eels has contributed to record low population numbers.
NOAA and U.S. Fish and Wildlife Service’s Offices of Law Enforcement are leading the investigation as part of the Puerto Rico and U.S. Virgin Islands Environmental Crimes Task Force, along with USCG and U.S. Customs and Border Protection. The Puerto Rico Police Bureau, Joint Forces of Rapid Action (FURA) and Puerto Rico Department of Natural and Environmental Resources also provided valuable assistance.
Senior Trial Attorney Patrick M. Duggan of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney and Environmental Litigation Coordinator Seth A. Erbe for the U.S. Attorney’s Office for the District of Puerto Rico are prosecuting the case.
Physician Pleads Guilty to Medicare Fraud SchemeRead the Press Release
A California physician pleaded guilty today in Los Angeles to criminal health care fraud, arising from her false home health certifications and related fraudulent billings to Medicare.
According to court documents, Lilit Gagikovna Baltaian, 61, of Porter Ranch, was a physician licensed to practice in California and an enrolled Medicare provider. From approximately January 2012 through July 2018, Baltaian falsely certified patients to receive home health care from at least four Los Angeles area home health agencies. Baltaian’s false certifications were used by the home health agencies to fraudulently bill Medicare for the unnecessary home health care. In some instances, Baltaian pre-signed blank, undated physician certification forms knowing that the home health agencies would later falsify the forms to make it appear as if she saw the Medicare beneficiaries and made clinical findings to support the need for home health care, when she had not done either. Baltaian received cash benefits related to these referrals and also submitted claims to Medicare for signing the fraudulent certifications.
Between January 2012 and July 2018, four home health agencies used Baltaian’s false certifications to submit fraudulent claims to Medicare, resulting in loss to Medicare of at least $1,449,050.
Baltaian pleaded guilty to health care fraud. She is scheduled to be sentenced on April 3, 2025, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office; and Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services Office of Inspector General (HHS-OIG)’s Los Angeles Regional Office made the announcement.
FBI and HHS-OIG are investigating the case.
Trial Attorneys Matthew Belz and Eric Schmale of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Justice Department, EPA and Pennsylvania Announce Settlements to Reduce Climate- and Health- Harming EmissionsRead the Press Release
The Justice Department and the Environmental Protection Agency (EPA) today announced two settlements with oil and gas operators in the commonwealth of Pennsylvania. In separate agreements, XTO Energy Inc. (XTO) and Hilcorp Energy Company (Hilcorp) agreed to resolve alleged Clean Air Act and Pennsylvania Air Pollution Control Act violations involving their oil and gas production operations in Pennsylvania.
Under the settlements, XTO agrees to pay a $4 million civil penalty and Hilcorp agrees to pay a $1.275 million civil penalty. Each of these amounts will be shared equally by the United States and the commonwealth of Pennsylvania, which is a co-plaintiff in both cases. In addition to the civil penalties, both companies will undertake compliance measures to achieve major reductions in harmful emissions at their oil and gas production facilities in Butler County, Lawrence County and Mercer County facilities.
“These actions are the result of our continuing efforts to ensure that oil and gas operators comply with the Clean Air Act,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The commitments under the settlements will significantly reduce pollution from these companies’ operations, including volatile organic compounds that contribute to ground-level ozone, and methane, a potent greenhouse gas.”
“Hilcorp and XTO Energy’s violations contributed to smog that reduces air quality, as well as methane releases that are a primary driver of near-term climate change,” said Assistant Administrator David M. Uhlmann for EPA’s Office of Enforcement and Compliance Assurance. “These settlements are the latest in EPA’s urgent efforts to limit the greenhouse gas emissions that cause climate change and hold corporate polluters accountable for jeopardizing public health.”
“Today’s settlements reinforce a simple message: if your company contaminates the air in this district with harmful pollution, you will be held accountable under federal law,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “Through the hard work of our office and our law enforcement partners, XTO Energy and Hilcorp will be required not only to pay penalties related to the pollutants they already released, but also to protect against future harm through compliance measures that will reduce emissions of harmful pollutants. We remain steadfast in our efforts to protect the people of western Pennsylvania and the air they breathe.”
“Pennsylvanians have a right to clean air, and the Shapiro Administration continues to hold polluters accountable for infringing on that right,” said Acting Pennsylvania Department of Environmental Protection (PADEP) Secretary Jessica Shirley. “Today’s settlement will result in lower emissions and cleaner air for the people of the Commonwealth.”
As part of the settlement, XTO must undertake a project to mitigate harm attributable to XTO’s alleged violations. Specifically, by Dec. 31, 2027, XTO will be required to work with PADEP to identify the heaviest polluting abandoned oil and gas wells in western Pennsylvania and spend at least $1.4 million to plug or remediate them. Many of these “orphan” wells are existing significant sources of methane.
The work that XTO will do will result in the reduction of over 1,960 tons of carbon dioxide equivalent emissions per year released as methane, similar to the reductions achieved by taking 420 cars off the road for one year. The settlement will also eliminate nearly 120 tons of volatile organic compound (VOC) emissions annually.
The XTO settlement resolves allegations by EPA and PADEP that XTO failed to comply with federal and state requirements to capture and control air emissions from 11 of its oil and gas production facilities in Butler County. EPA identified the alleged violations through field investigations conducted in 2018 and 2019.
Hilcorp must also undertake a project to mitigate harm attributable to the company’s alleged violations. Hilcorp will retrofit at least 164 pneumatic controllers that emit pollution with non-emitting process controllers at eight of the company’s facilities located in Lawrence and Mercer counties at least three years earlier than required under law.
EPA projects that the Hilcorp agreement will result in the reduction of over 160 tons of VOC emissions annually and 5,200 tons of carbon dioxide equivalent emissions per year released as methane. The reductions in methane from the settlement are similar to the reductions that would be achieved by taking 1,120 cars off the road for one year.
The Hilcorp settlement resolves allegations by EPA and PADEP that the company failed to comply with federal and state requirements to capture and control air emissions from six of its oil and gas production facilities in Lawrence and Mercer counties.
As a result of these alleged violations, both XTO and Hilcorp released methane and VOCs directly into the air instead of capturing and controlling the gas using specially designed equipment. Methane, a climate super pollutant, is a potent greenhouse gas that contributes to climate change, and VOCs contribute to ground-level ozone, which adversely affects human health.
XTO is a natural gas extraction and production company that is a directly held, wholly owned subsidiary of ExxonMobil. Its operations stretch from the Great Plains to Appalachia. It holds interests in more than 50,000 producing oil and natural gas wells. These holdings include operations in 15 counties (including Butler County), covering 534,000 acres in western Pennsylvania.
Hilcorp is a privately owned company registered to do business in Pennsylvania and headquartered in Houston. Hilcorp engages in oil and gas exploration, development, and production across the United States, with active production operations in Alabama, Alaska, Colorado, Louisiana, New Mexico, Ohio, Pennsylvania, Texas and Wyoming.
These settlements are part of EPA’s National Enforcement and Compliance Initiative Mitigating Climate Change. This initiative focuses, in part, on reducing methane emissions from oil and gas and landfill sources.
The consent decrees were filed with the United States District Court, Western District of Pennsylvania and are each subject to a 30-day comment period. The complaints and the proposed consent decrees are available at www.justice.gov/enrd/consent-decrees.
More information on these settlement agreements is available on the agency’s Hilcorp Energy Company Settlement web page and XTO Energy Inc. Settlement web page.
EPA and PADEP investigated the cases.
Attorneys from the Environment and Natural Resources Division’s Environmental Enforcement Section and the U.S. Attorney’s Office for the Western District of Pennsylvania handled the cases.
Two Florida Men Sentenced in Multimillion-Dollar Tax Refund SchemeRead the Press Release
Two Florida men were sentenced today for their involvement in the “Note Program,” a tax fraud scheme. Jasen Harvey, of Tampa, was sentenced to 48 months in prison and Christopher Johnson, of Orlando, was sentenced to 37 months in prison for conspiring to defraud the United States.
According to court documents and statements made in court, from 2015 to 2018, Johnson and Harvey conspired to promote a scheme in which Harvey and others prepared tax returns for clients that claimed that large, nonexistent income tax withholdings had been paid to the IRS on behalf of clients and sought large refunds based on those purported withholdings. The conspirators charged clients fees and required the clients to pay a share of the fraudulently obtained refunds to them.
Overall, the defendants claimed over $3 million in fraudulent refunds on their clients’ returns, of which the IRS paid about $1.5 million.
In addition to the terms of imprisonment, U.S. District Judge Roy B. Dalton Jr. for the Middle District of Florida ordered Johnson to serve three years of supervised release and to pay $864,117.42 in restitution to the United States. Judge Dalton Jr. ordered Harvey to serve three years of supervised release and pay $785,858.42 in restitution.
Co-defendant Arthur Grimes is scheduled to be sentenced on Jan. 13, 2025.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Melissa Siskind, Jeffrey McLellan and Caroline Pearson of the Tax Division and Assistant U.S. Attorney Diane Hu for the Middle District of Florida prosecuted the case.
Owner of North Carolina Automotive Business Sentenced for Employment Tax CrimesRead the Press Release
A North Carolina man was sentenced today to one year and one day in prison for not paying more than $2 million in employment taxes.
According to court documents and statements made in court, George Taylor Jr., of Wilmington, North Carolina, owned and operated National Speed, a high-performance automotive services business. As the chairman and president of National Speed, Taylor was responsible for withholding Social Security, Medicare and income taxes from his employees’ wages and paying those taxes to the IRS. From 2014 through 2021, Taylor withheld employment taxes from his employees’ paychecks but did not pay those taxes over to the IRS, nor did he file the necessary employment tax returns. He executed the scheme by using an accounting software to calculate the taxes to be withheld from his employees’ paychecks, but after withholding the taxes, he simply kept the funds for himself and his business ventures.
In total, Taylor caused a tax loss to the IRS of $2,272,072.
In addition to the term of imprisonment, U.S. District Judge Richard Myers II for the Eastern District of North Carolina ordered Taylor to serve three years of supervised release and pay approximately $2,615,534 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Michael F. Easley Jr. for the Eastern District of North Carolina made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Brian Flanagan of the Tax Division and Assistant U.S. Attorney Ethan Ontjes for the Eastern District of North Carolina prosecuted the case.
Laboratory Owner Charged for $79M Fraud SchemeRead the Press Release
The owner and operator of a Texas laboratory was charged yesterday in connection with his role in a $79 million respiratory pathogen panel (RPP) testing fraud scheme.
According to court documents, Osman Syed, 34, also known as Syed Osman, an Indian national, caused BioDX Labs LLC (BioDX) to submit more than $79 million in fraudulent claims to Medicare and Texas Medicaid for RPP tests that were not provided and were medically unnecessary. Osman used the personal identifying information of a physician, without the physician’s knowledge or consent, to cause the submission of millions of dollars in claims to Medicare and Medicaid for RPP tests for beneficiaries and recipients, even though the physician had no prior relationship with the beneficiaries and recipients, was not treating the beneficiaries and recipients for respiratory symptoms, and did not use the tests to treat the beneficiaries and recipients. To conceal that BioDX did not perform the tests as billed, Osman falsely represented that BioDX used reference laboratories to perform its testing. Osman and his co-conspirators laundered the proceeds of the fraudulent scheme by transferring substantial sums to bank accounts abroad, including accounts in China, Hong Kong, Turkey, Greece, and Switzerland. In connection with the charges, the government seized over $15 million in cash.
Osman is charged with three counts of health care fraud, conspiracy to engage in money laundering, and three counts of money laundering. If convicted, he faces a maximum penalty of 10 years in prison on each count.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office; Special Agent in Charge Travis Pickard of the Homeland Security Investigations (HSI) Dallas Field Office; Special Agent in Charge Craig Wolf of the U.S. Secret Service (USSS) Dallas Field Office; Chief William Marlowe of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU); and Acting Special Agent in Charge P. J. O’Brien of the FBI Dallas Field Office made the announcement.
HHS-OIG, HSI, USSS, MFCU, and FBI are investigating the case.
Assistant Chief Brynn Schiess of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dallas Anesthesiologist Convicted of Tampering with IV Bags Sentenced to 190 Years in PrisonRead the Press Release
A Dallas anesthesiologist who injected dangerous drugs into patient IV bags, leading to one death and numerous cardiac emergencies, was sentenced today to 190 years in prison.
Raynaldo Riviera Ortiz Jr., 60, was charged by criminal complaint in September 2022 and indicted the following month on charges related to tampering with IV bags used at a local surgical center. In April, following an eight-day trial, a jury convicted him of four counts of tampering with consumer products resulting in serious bodily injury, one count of tampering with a consumer product and five counts of intentional adulteration of a drug. He was sentenced today by Chief U.S. District Judge David Godbey for the Northern District of Texas, who found that Dr. Ortiz caused the death of his colleague and called his other conduct “tantamount to attempted murder.”
“The defendant betrayed the trust of patients by tampering with critical medical supplies, and the result was serious bodily injury,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s sentence reflects the seriousness of these offenses and should make clear that the department will work tirelessly to investigate and prosecute anyone who endangers patients by tampering with drugs.”
“This disgraced doctor acted no better than an armed assailant spraying bullets indiscriminately into a crowd. Dr. Ortiz tampered with random IV bags, apparently unconcerned with who he hurt. But he wielded an invisible weapon, a cocktail of heart-stopping drugs, concealed inside an IV bag designed to help patients heal,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “On at least nine separate occasions, he essentially attacked unconscious patients lying on an operating table, and even killed a colleague. I am so proud of our office’s work in bringing Dr. Ortiz to justice and bringing a measure of solace to his victims and their families.”
“Patients expect that their doctors will use only safe and effective medical products during their surgeries. The illicit tampering in this case demonstrated a gross disregard for patient safety,” said Special Agent in Charge Charles L. Grinstead of the Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI). “This investigation uncovered that adulterating the IV bags caused serious adverse health consequences. This sentencing is a clear demonstration that FDA will not stop pursuing and bringing to justice those who risk patients’ health and safety through their criminal actions.”
According to evidence presented at trial, between May and August 2022, numerous patients at Surgicare North Dallas suffered cardiac emergencies during routine medical procedures performed by various doctors. About one month after the unexplained emergencies began, an anesthesiologist who had worked at the facility earlier that day died while treating herself for dehydration using an IV bag. In August 2022, doctors at the surgical care center began to suspect tainted IV bags had caused the repeated crises after an 18-year-old patient had to be rushed to the intensive care unit in critical condition during a routine sinus surgery.
A local lab analyzed fluid from the bag used during the teenager’s surgery and found bupivacaine (a nerve-blocking agent), epinephrine (a stimulant) and lidocaine (an anesthetic) — a drug cocktail that could have caused the boy’s symptoms, which included very high blood pressure, cardiac dysfunction and pulmonary edema. The lab also observed a puncture in the plastic shell that had been around the IV bag.
Evidence presented at trial showed that Ortiz surreptitiously injected IV bags of saline with epinephrine, bupivacaine and other drugs, placed them into a warming bin at the facility, and waited for them to be used in colleagues’ surgeries, knowing their patients would experience dangerous complications. Surveillance video introduced into evidence showed Ortiz repeatedly retrieving IV bags from the warming bin and replacing them shortly thereafter, not long before the bags were carried into operating rooms where patients experienced complications. Video also showed Ortiz mixing vials of medication and watching as victims were wheeled out by emergency responders.
Evidence at trial showed that Ortiz was facing disciplinary action at the time for an alleged medical mistake made in his one of his own surgeries, and that he potentially faced losing his medical license.
At trial, doctors testified about the confusion they felt when their patients’ blood pressures suddenly skyrocketed. Reviewing medical records, they all noted the emergencies occurred shortly after new IV bags had been hung. Patients recalled waking up unexpectedly intubated in intensive care units they had been transported to via emergency medical transportation services, in pain and in fear for their lives.
FDA-OCI investigated the case with support from the Dallas Police Department.
Assistant Director Patrick Runkle of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney John de la Garza for the Northern District of Texas prosecuted the case. Assistant U.S. Attorney Gail Hayworth for the Northern District of Texas provided appellate support.
Lisa L. Lambert Appointed as U.S. Trustee for the Northern and Eastern Districts of TexasRead the Press Release
Lisa L. Lambert has been appointed by Attorney General Merrick B. Garland as the U.S. Trustee for the Northern and Eastern Districts of Texas (Region 6) effective today. Lambert replaces Kevin M. Epstein, who filled the Region 6 role in an interim capacity and who continues to serve as the U.S. Trustee for the Southern and Western Districts of Texas (Region 7).
Lambert joined the U.S. Trustee Program (USTP) in 1998 as a trial attorney in the field office in Tyler, Texas. She has since served the USTP in a variety of capacities. After three years in three of the USTP’s New York offices, Lambert returned to Texas in 2009 as a trial attorney in the Dallas field office, and she has served as the Assistant U.S. Trustee in charge of that office since 2012. In addition to her extensive service to the USTP, Lambert has held several leadership positions in the Federal Bar Association’s bankruptcy section, and she coached oral advocacy and briefing skills to Texas Tech University law students competing in the Duberstein Bankruptcy Moot Court Competition for more than a decade.
Lambert received a bachelor’s degree in English from the University of North Carolina at Chapel Hill and a law degree from Texas Tech University School of Law. After law school, she clerked for Chief Bankruptcy Judge Houston Abel for the Eastern District of Texas and worked at a boutique law firm focused on bankruptcy.
The Executive Office for U.S. Trustees made the announcement.
The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.
Pharmaceutical Company QOL Medical and CEO Agree to Pay $47M for Allegedly Paying Kickbacks to Induce Claims for QOL’s Drug SucraidRead the Press Release
Pharmaceutical company QOL Medical LLC (QOL) and its co-owner and CEO, Frederick E. Cooper, have agreed to pay $47 million to resolve allegations that they caused the submission of false claims to federal health care programs, in violation of the False Claims Act and similar state statutes, by offering kickbacks in the form of free Carbon-13 breath testing services to induce claims for QOL’s drug Sucraid.
Sucraid is an FDA-approved therapy for the rare genetic condition Congenital Sucrase-Isomaltase Deficiency (CSID). CSID patients have difficulty digesting sucrose (table sugar) and suffer from gastrointestinal symptoms such as diarrhea, abdominal pain, bloating and gas.
Beginning in 2018, QOL, with Cooper’s approval, distributed free Carbon-13 breath test kits to health care providers and asked providers to give the kits to patients with common gastrointestinal symptoms. QOL claimed that the test could “rule in or rule out” CSID. In fact, the test does not specifically diagnose CSID. Conditions other than CSID can cause a patient to test “positive” for low sucrase activity on a Carbon-13 breath test. Approximately 30% of the Carbon-13 breath tests from QOL were positive for low sucrase activity.
QOL paid a laboratory to analyze the breath tests, report the results to health care providers and also provide the results to QOL. The results provided to QOL did not contain patient names, but did contain the name of the health care provider who ordered the test, along with the patient’s age, gender, symptoms and test result. Between 2018 and 2022, QOL disseminated this information to its sales force with instructions to make sales calls for Sucraid to health care providers whose patients had positive Carbon-13 breath test results. QOL tracked whether sales representatives converted “positive” Carbon-13 breath tests into Sucraid prescriptions. As QOL’s CEO, Cooper was aware of and approved the implementation and continuation of this marketing program.
Some QOL sales representatives also made claims to health care providers regarding the Carbon-13 test’s ability to definitively diagnose CSID that were not supported by published scientific literature. For example, in slides at a 2019 national sales training, which Cooper reviewed, QOL suggested that sales representatives tell health care providers, “If you have a positive breath test, the patient will not improve unless you treat with Sucraid.”
As part of the settlement, QOL and Cooper admitted and accepted responsibility for certain facts providing the basis of the settlement.
“Participants in the federal healthcare system, including pharmaceutical manufacturers, may not offer improper inducements to generate business,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting the integrity of federal health care programs, upholding the objectivity of treatment decisions by physicians and patients and preventing overutilization and waste in government health care programs.”
“QOL provided free goods to doctors and patients in order to induce prescriptions for the very expensive drug QOL manufactured,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “Not all kickbacks come in the form of cash going into a doctor’s or a patient’s pocket. Here, the defendants relied on free breath tests and misleading sales tactics to drive patients to their product. This conduct unnecessarily drained money from the federal health care programs and improperly influenced treatment decisions by physicians and their patients.”
“Kickback arrangements can compromise medical decisions and threaten the integrity of the Medicare program,” said Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We are committed to protecting taxpayer-funded health care programs and the patients served by those programs, and we will thoroughly pursue allegations of False Claims Act violations.”
“Kickbacks have no place in our healthcare system,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “This settlement should send a message that the FBI is committed to finding fraudsters and investigating all those who try to exploit the healthcare system at the expense of patients.”
“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General, has placed a high priority on pursuing companies that engage in fraudulent activity at the expense of the U.S. military,” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “This settlement demonstrates our commitment to protecting the TRICARE program, and we will continue to work with our partners to ensure critical healthcare funds are utilized in the appropriate manner.”
The allegations resolved by the settlement agreement were, in part, originally brought in a case filed under the qui tam or whistleblower provisions of the False Claims Act by Elizabeth Allen, Lauren Canlas, Donald Johnson and Stacey Adams, who are former QOL Medical employees. The case is captioned United States ex rel. John Doe 1 et al. v. QOL Medical LLC, et al., No. 1:20-cv-11243 (DMA). The False Claims Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did, in part, in this case. Of the total $47 million recovery, approximately $43.6 million constitutes the federal portion of the recovery and approximately $3.4 million constitutes a recovery for State Medicaid programs. The whistleblowers will receive approximately $8 million from the federal portion of the recovery.
The government’s pursuit of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Massachusetts, with investigative support from HHS-OIG, the FBI Boston Field Office, DCIS and Department of Veterans Affairs’ Office of the Inspector General.
Trial Attorneys Emily Bussigel and Paige Ammons of the Justice Department’s Civil Division and Assistant U.S. Attorneys Brian LaMacchia and Lindsey Ross for the District of Massachusetts handled the matter.
With the exception of the facts admitted by QOL and Cooper, the claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Owner of Florida Healthcare Companies Pleads Guilty to Tax CrimesRead the Press Release
A Florida man pleaded guilty today in federal court in Miami to not paying employment taxes and not filing his individual income tax returns.
According to court documents, Paul Walczak, of Palm Beach Gardens, controlled a web of interconnected healthcare companies operating under various names, including Palm Health Partners and Palm Health Partners Employment Services (PHPES). At its peak, PHPES employed over 600 people and paid over $24 million dollars annually in payroll.
From 2016 through 2019, Walczak withheld nearly $7.5 million in taxes from his employees’ paychecks but did not pay over those taxes to the IRS as required by law. He did this despite having been penalized by the IRS in 2014 for not paying his employees’ taxes. During this same period, Walczak also did not pay $3,480,111 of the business’s portion of his employees’ Social Security and Medicare taxes.
At the same time Walczak was withholding taxes from his employees’ wages and not paying them to the IRS, he used over $1 million from his businesses’ bank accounts to purchase a yacht, transferred hundreds of thousands of dollars to his personal bank accounts and used the business accounts for personal spending at retailers such as Bergdorf Goodman, Cartier and Saks Fifth Avenue.
For 2019 through 2020, Walczak did not file personal income tax returns despite being legally required to do so.
In total, Walczak caused a tax loss to the IRS of $10,912,334.80
Walczak is scheduled to be sentenced on Feb. 28, 2025. He faces a maximum penalty of five years in prison for the employment tax charge and one year in prison for not filing income tax returns. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Andrew Ascencio, Brian Flanagan and Ashley Stein of the Justice Department’s Tax Division are prosecuting the case.
New York Man Pleads Guilty to Employment Tax CrimesRead the Press Release
A New York man pleaded guilty to employment tax crimes for not collecting and paying over employment taxes from the wages of his company’s employees.
According to court documents and statements made in court, Victor Aguayo, of Nassau County, was owner and president of Mabel Interior Design Inc., an interior painting business in Westbury, New York. Aguayo was responsible for withholding Social Security, Medicare and federal income taxes from his employees’ wages, reporting those wages and withholdings to the IRS quarterly and paying those withheld taxes to the IRS quarterly as well.
Instead, Aguayo paid his employees approximately $3.6 million in cash wages but did not withhold or pay taxes from those wages. In addition, he caused false quarterly tax returns to be filed that did not report those cash wages. As a result, Aguayo caused a tax loss to the IRS of $545,743.
Aguayo is scheduled to be sentenced on April 21, 2025. He faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Chief Sarah Ranney and Trial Attorney Joseph D. G. Castro of the Tax Division are prosecuting the case.
Justice Department Secures Agreement with Staffing Company to Resolve Immigration-Related Discrimination ClaimRead the Press Release
The Justice Department announced today that it secured a settlement agreement with Key Fortune Inc., doing business as Express Employment Professionals (Express), a staffing company in Rancho Cucamonga, California. The agreement resolves the department’s determination that Express discriminated against a worker because of her immigration status by refusing to continue to honor her valid document that showed her permission to work in the United States. The agreement also resolves the department’s determination that Express refused to place her on an assignment until she presented a specific document showing her future permission to work.
“It is unlawful for employers to require a specific document, or to reject a valid document, showing someone’s permission to work because of their immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department is committed to protecting workers from immigration-related discrimination in the hiring process and eliminating unnecessary barriers to employment.”
After conducting an investigation based on a complaint, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) concluded that Express unlawfully discriminated against a worker based on her immigration status when it rejected the worker’s Employment Authorization Document (EAD), which was still valid and not set to expire for an additional two months. Express then told the worker that it would not place her on an assignment until she provided a new EAD. Under the anti-discrimination provision of the Immigration and Nationality Act (INA), employers are not permitted to request specific documentation or reject valid documentation showing someone’s permission to work because of their immigration status.
Under the terms of the settlement, Express will pay a civil penalty to the United States and pay backpay to the affected worker. The agreement also requires the company to train its personnel on the INA’s anti-discrimination requirements, review its employment policies and be subject to departmental monitoring.
IER is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; or retaliation and intimidation.
IER’s website has information about how employers can avoid unlawful discrimination when verifying a worker’s permission to work. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected]; or visit IER’s English and Spanish websites. Sign up for email updates from IER.
International Fugitive Home Health Care Owner Sentenced for Fraudulently Billing MedicareRead the Press Release
A Michigan home health care company owner was sentenced yesterday to three years and five months in prison for his role in a health care fraud conspiracy that resulted in almost $7.9 million in false and fraudulent claims for home health care services paid by Medicare Part A.
According to court documents, Muhammad Zafar, 53, of Wayne County, owned and operated a home health care business in Michigan. Together with three doctors and two other home health care company owners, Zafar offered kickbacks, bribes, and other inducements to beneficiary recruiters in exchange for Medicare beneficiary information. Zafar and his co-conspirators used this information to bill Medicare for services that were medically unnecessary and not provided. Zafar pleaded guilty to submitting approximately $393,500 in claims to Medicare from his home health care company for services that were medically unnecessary, ineligible for Medicare reimbursement, and not provided as represented.
On the same day that Zafar appeared in court for his initial appearance on June 17, 2015, he violated his court-issued bond, crossed the international border into Canada, and shortly thereafter flew to Pakistan. Zafar remained an international fugitive for approximately seven and a half years before returning to the United States to face the charges against him.
On May 29, Zafar pleaded guilty to conspiracy to commit health care fraud and wire fraud.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office made the announcement.
HHS-OIG and the FBI Detroit Field Office investigated the case.
Trial Attorney Jeffrey A. Crapko of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Former Marianas High School Teacher Sentenced to 156 Months in Federal Prison for Child Exploitation CrimesRead the Press Release
Saipan, CNMI – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announces that on November 13, 2024, David Matthew Frahm, age 47, from Iowa, was sentenced to 156 months imprisonment in the U.S. District Court for the Northern Mariana Islands (NMI) for Possession of Child Pornography, in violation of 18 U.S.C. §§ 2252(a)(5) (B) and (b)(2) and Engaging in Illicit Sexual Conduct in Foreign Places, in violation of 18 U.S.C. §§ 2423(c) and (f). The Court also ordered Frahm to serve an additional five years of supervised release and pay a $200 mandatory assessment fee. The Court deferred a hearing on restitution until December 19, 2024.
As a convicted sex offender under the Sex Offender Registration and Notification Act, Frahm will be required to register in every jurisdiction where he resides, works, and goes to school upon release from prison.
Frahm pled guilty to knowingly possessing a visual depiction of a minor engaged in sexually explicit conduct, discovered during forensic analysis of a laptop computer. He abandoned the computer in March 2019 before his flight from Saipan. The public school-issued computer contained a digital picture from a defunct Ukrainian company that produced child pornography. The company operated under the guise of an artistic modelling studio but was shut down approximately two decades ago for child exploitation.
Shortly after local and federal law enforcement began investigating Frahm for this charge and other conduct, he fled from the Commonwealth of the Northern Mariana Islands (CNMI) to Malaysia where he lived illegally for four years. While in Malaysia, Frahm violated a law designed to punish U.S. citizens who commit sex crimes while traveling or residing abroad. He did so in February 2024 by using his mobile phone to surreptitiously record an eleven-year-old child after exiting a shower. Friends of the victim contacted U.S. authorities, and with assistance from the Royal Malaysian Police, Frahm was detained pursuant to a warrant issued by the District Court for the NMI. He was then escorted by the FBI back to Saipan. On June 8, 2024, federal authorities formally arrested him after landing on U.S. soil.
After sentencing, the Court granted the Government’s motion to dismiss a third count relating to Frahm’s alleged attempt to take pictures of children using a toilet in March 2019, a condition of the plea agreement.
“Frahm preyed on children in the far corners of the Indo-Pacific region,” stated United States Attorney Anderson. “I applaud the work of the FBI in bringing him to justice. This case demonstrates what multi-national partnerships can do to promote public safety. Those who travel outside the United States to exploit children will be held accountable.”
“This sentence sends a clear message that crimes against children will not be tolerated, and that our collective efforts to promote public safety in Hawaii, Guam, and the Northern Mariana Islands remains steadfast,” said FBI Special Agent in Charge Steven Merrill. “We will hold perpetrators accountable for their heinous actions especially when they were entrusted by students and parents alike to serve as role models and not a sexual predator.”
The investigation was conducted by the Federal Bureau of Investigation with the assistance of CNMI Department of Public Safety and Royal Malaysian Police.
Assistant United States Attorney Eric O’Malley prosecuted the case in the District of the Northern Mariana Islands.
This was a Project Safe Childhood (PSC) case, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit Justice.gov/PSC.
El Departamento de Justicia llega a un acuerdo con una compañía de dotación de personal que resuelve acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Key Fortune, Inc., que opera comercialmente como Express Employment Professionals (Express), una empresa de dotación de personal en Rancho Cucamonga, California. El acuerdo resuelve la determinación del Departamento que Express discriminó a una trabajadora debido a su estatus migratorio al negarse a seguir honrando su documento válido que mostraba su permiso para trabajar en los Estados Unidos. El acuerdo también resuelve la determinación del Departamento que Express se negó a asignarla a un encargo hasta que no presentara un documento específico que mostraba su futuro permiso para trabajar.
«Es ilegal que un empleador requiera un documento específico o que rechace un documento válido que demuestre el permiso de uno para trabajar, debido al estatus migratorio de esa persona», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento se compromete a proteger a los trabajadores de la discriminación relacionada con la inmigración en el proceso de contratación y a eliminar barreras innecesarias para el empleo».
Después de llevar a cabo una investigación basada en una queja, la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División de Derechos Civiles concluyó que Express discriminó ilegalmente a una trabajadora por su estatus migratoria cuando se negó a seguir honrando su documentación válida actual que indicaba que se le permitía trabajar en los Estados Unidos. En concreto, el Departamento determinó que Express rechazó el Documento de Autorización para Trabajar (EAD) de la trabajadora, que todavía era válida y que no vencería hasta dentro de dos meses adicionales. Express le indicó a la trabajadora que no le asignaría un encargo hasta que no presentara un nuevo EAD. En virtud de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés), los empleadores no pueden solicitar documentación específica ni rechazar documentación válida que demuestre el permiso de alguien para trabajar debido a su estatus migratorio.
En virtud de los términos del acuerdo, Express pagará sanciones civiles a los Estados Unidos y le ofrecerá pagos retroactivos a la trabajadora afectada. Por otra parte, el acuerdo también requiere que la compañía capacite a su personal en cuanto a los requisitos antidiscriminatorios de la INA, que revise sus políticas de empleo y que se someta a la supervisión por parte del Departamento.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
El sitio web de la IER dispone de información sobre cómo los empleadores pueden evitar la discriminación ilícita al verificar el permiso para trabajar de un trabajador. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea gratuito o visualizar una presentación a la carta; enviar un correo electrónico a [email protected]; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
Attorney General Merrick B. Garland Statement on the Passing of Theodore OlsonRead the Press Release
The Justice Department released the following statement from Attorney General Merrick B. Garland today following the passing of Theodore Olson:
“The passing of Ted Olson is an enormous loss for the legal community. Ted was an extraordinary attorney and public servant whose contributions to the Justice Department and the law will long be remembered.
Ted led the Justice Department’s Office of Legal Counsel as Assistant Attorney General and later served as Solicitor General of the United States. One of the great lawyers and appellate advocates of his generation, Ted led those offices with integrity, skill, and dedication to the rule of law, in the best traditions of the Justice Department. He left with the great admiration and respect of the Department’s attorneys.
Ted exemplified what it means to be a principled person. Throughout his career, both in government and private practice, he held steadfast to what he believed was right, regardless of criticism from any quarter. Even more important, throughout his life, he treated everyone with great kindness and decency.
On behalf of the Justice Department, I extend my condolences to Ted’s family and loved ones, and my deep gratitude for his service and his lifetime devotion to the law.”
North Carolina gun store robberies lead to prison sentences for Norfolk menRead the Press Release
NORFOLK, Va. – Two Norfolk men have been sentenced for federal firearms crimes.
According to court documents, on Sept. 20, 2021, Khari Terell Wood, 28, and others broke into Gale Force Guns in Moyock, North Carolina, and stole five firearms. On Oct. 22, 2021, Wood and others broke into the same Gale Force Guns store and stole 47 firearms. After each of the burglaries, Wood transported the stolen firearms from North Carolina to Norfolk.
On Oct. 28,2021, law enforcement found Wood in a stolen vehicle at his residence. As officers approached, Wood quickly exited and attempted to flee into the residence, but the officers were able to detain him. During subsequent searches of the stolen vehicle, officers recovered several firearms that were stolen in the Gale Force Guns burglaries.
On Nov. 26, 2021, Isaiah Malquawn Hopkins, 28, broke into the River View Market in Norfolk, using one of the handguns stolen from Gale Force Guns to shoot through a glass door. He then entered the store and stole a lottery ticket box. On March 14, 2022, Hopkins was stopped by the Indiana State Police for a traffic infraction. During a search of the vehicle, officers found the handgun near the driver seat.
Wood previously had been convicted of robbery and use of a firearm in the commission of a felony. Hopkins previously had been convicted of robbery, use of a firearm in the commission of a felony, conspiracy to commit robbery, and malicious wounding. As convicted felons, Wood and Hopkins cannot legally possess firearms or ammunition.
Hopkins pled guilty on June 24 to being a felon in possession of firearms. On Oct. 24 he was sentenced to eight years in prison.
Wood pled guilty on June 25 to conspiracy and being a felon in possession of firearms. He was sentenced today to nine years and two months in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Anthony A. Spotswood, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Jason S. Miyares, Attorney General of Virginia; and Mark Talbot, Chief of Norfolk Police, made the announcement after sentencing by Senior U.S. District Judge Raymond A. Jackson.
Special Assistant U.S. Attorney Marc W. West, an Assistant Attorney General with the Virginia Attorney General’s Office, and Assistant U.S. Attorney Kevin M. Comstock prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-33.
Brazilian Resident Pleads Guilty for Role in Fraudulent Tax Refund SchemeRead the Press Release
A South Carolina man currently residing in Brazil pleaded guilty earlier this week in federal court in San Francisco to conspiracy to submit a false claim.
According to court documents and statements made in court, Robert Xan Paul, 45, of Sao Paulo, Brazil, conspired with others to defraud the United States by preparing and submitting to the IRS a fraudulent income tax return that claimed a nearly $600,000 refund, which the IRS paid. Paul was a client of O.I.D. Process, a business owned by his co-conspirators that helped others prepare and file individual federal income tax returns that claimed fictitious Original Issue Discount interest income and federal tax withholdings, resulting in fraudulent claims for tax refunds.
To support his refund claim, Paul created fraudulent IRS forms from financial institutions where he had accounts. Those forms falsely indicated that the financial institutions had withheld federal income tax on his behalf.
In total, Paul caused a tax loss to the IRS of $595,110.
Paul pleaded guilty to one count of conspiracy to submit false claims. He is set to be sentenced on Jan. 21, 2025. Paul faces a maximum sentence of 10 years in prison. He also faces a period of supervised of release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and First Assistant U.S. Attorney Patrick D. Robbins for the Northern District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney J. Parker Gochenour of the Tax Division and Assistant U.S. Attorney Michael Pitman for the Northern District of California are prosecuting the case.
Tax Attorneys and Insurance Agent Sentenced in Tax Shelter SchemeRead the Press Release
Two tax attorneys and an insurance agent were sentenced today to a combined 16 years in prison for conspiring to defraud the United States and helping clients file false tax returns, based on their promotion and operation of a fraudulent tax shelter.
Michael Elliott Kohn, an attorney, was sentenced to seven years in prison. Catherine Elizabeth Chollet, also an attorney, was sentenced to four years in prison. David Shane Simmons, an insurance agent and broker, was sentenced to five years in prison.
According to court documents and evidence presented at trial, from 2011 to November 2022, Kohn and Chollet, both of St. Louis, and Simmons, who is based out of Jefferson, North Carolina, promoted, marketed and sold to clients the Gain Elimination Plan, a fraudulent tax scheme.
The defendants designed the plan to conceal clients’ income from the IRS by inflating business expenses through fictitious royalties and management fees. These fictitious fees were paid, on paper, to a limited partnership largely owned by a charity. In reality, Kohn and Chollet fabricated the fees.
Kohn and Chollet advised clients that the plan’s limited partnership was required to obtain insurance on the life of the clients to cover the income that was allocated to the charitable organization. The death benefit was directly tied to the anticipated profitability of the clients’ businesses and how much of the clients’ taxable income was intended to be sheltered.
Simmons earned more than $2.3 million in commissions for selling the insurance policies, splitting the commissions with Kohn and Chollet. Kohn and Chollet received more than $1 million from Simmons. Simmons also filed false personal tax returns that underreported his business income and inflated his business expenses, resulting in a tax loss of more than $480,000.
In total, the defendants caused a tax loss to the IRS of more than $22 million.
In addition to the terms of imprisonment, U.S. District Judge Kenneth D. Bell for the Western District of North Carolina ordered each defendant to serve three years of supervised release and to pay $22,515,615 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dena J. King for the Western District of North Carolina made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Kevin Schneider and Todd Ellinwood of the Tax Division and Assistant U.S. Attorney Caryn Finley for the Western District of North Carolina prosecuted the case.
Readout of Justice Department’s Civil Rights Division Quarterly Meeting with State and Local Civil and Human Rights Stakeholders on Veterans RightsRead the Press Release
The Justice Department’s Civil Rights Division held its quarterly convening of state and local civil and human rights partners to commemorate Veterans Day and discuss efforts to protect the civil rights of servicemembers and veterans.
“We owe our servicemembers, veterans and their families a deep debt of gratitude for their service to our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Through rigorous enforcement of federal civil rights laws, the Justice Department is working hard to ensure that the rights of the brave servicemembers and veterans are safeguarded from discrimination and unfair treatment.”
The Servicemembers and Veterans Initiative, housed in the Civil Rights Division, hosted today’s meeting with state and local civil and human rights partners, including representatives from various State Attorneys’ General offices and state-based civil rights agencies. . During the meeting, attendees celebrated the commitment of veterans and discussed the portability of professional licenses for servicemembers and their spouses; employment protections for servicemembers; outreach efforts by U.S. Attorneys’ Offices; federal, state, and local Veteran Treatment Programs; and federal rights relating to service and assistance animals.
This year, the Justice Department has aggressively defended the rights of servicemembers and veterans. Highlights of our work include:
- Vigorously enforcing the Americans with Disabilities Act on behalf of Veterans and other people with disabilities in Virginia Beach, Virginia, by reaching an agreement with the city to remove accessibility barriers to buildings such as police stations, libraries, technology centers, community centers and places of recreation.
- Securing over $200,000 in compensation and penalties against the City of El Paso, Texas, and its contracted towing companies to resolve allegations that the city and towing companies disposed of over 170 vehicles owned by servicemembers without first obtaining court orders, as required by the Servicemembers Civil Relief Act (SCRA). Since 2011, the department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA.
- Enforcing the Uniformed Services Employment and Reemployment Rights Act (USERRA), which entitles servicemembers to return to their civilian employment upon completion of their military service with the seniority, status and rate of pay that they would have obtained had they remained continuously employed by their civilian employer. USERRA also prohibits discrimination based on present, past and future military service. In a recent example, the Justice Department sued Oklahoma City Public Schools to protect rights guaranteed to an Air Force Reserve Senior Airman by USERRA. The lawsuit alleges that the Oklahoma City Public Schools violated USERRA when it failed to reinstate the airman in a teacher position upon his return from a military deployment.
- Continuing to expand access to the portability of professional licenses under the Servicemembers Civil Relief Act. Military spouses previously reported difficulty transferring their professional licenses, such as licenses to practice as a realtor or massage therapist, from one jurisdiction to another, hindering their ability to find jobs when moving due to their spouse’s military orders. A new SCRA provision added by Congress in 2023 helps servicemembers and their spouses use their professional licenses and certificates in certain circumstances when they relocate due to military orders. As a result of our work in this space, at least five states have changed their policies, procedures and websites to comport with the SCRA.
- Developing a fact sheet and training presentation on service and assistance animals to inform people with disabilities of their rights to live and travel with the aid of a service animal or assistance animal.
Learn more about the Servicemember and Veterans Initiative at www.justice.gov/servicemembers.
Maryland Store Owner Pleads Guilty to Tax EvasionRead the Press Release
A Maryland man who owns a retail store pleaded guilty today to evading his income taxes by not reporting cash taken from his business.
According to court documents and statements made in court, for over 20 years, William M. Bundy of District Heights owned and operated Bab’s Inc., a store located in District Heights, that only accepted cash payments. From 2017 through 2021, Bundy received wages from Bab’s but also took cash from the business without reporting that cash as income on his tax returns. He used the cash for personal expenditures, including gambling. Over a five-year period, Bundy gambled and lost over $3 million at two Maryland-area casinos, funded in part by $2.2 million in cash from Bab’s.
In total, for the years 2017 through 2021, Bundy had additional taxes due of $672,558.
Bundy is scheduled to be sentenced on Feb. 21, 2025. He faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Michael C. Vasiliadis of the Tax Division and Assistant U.S. Attorney Coreen Mao for the District of Maryland are prosecuting the case.
Client of Fraudulent Tax Shelter Scheme Pleads Guilty to ObstructionRead the Press Release
An Ohio doctor pleaded guilty today to corruptly endeavoring to obstruct the due administration of the internal revenue laws.
According to court documents and statements made in court, Dr. Suman Jana, of Strongsville, was a client of fraudulent tax shelter promoter Michael Meyer and his sub-promoter Rao Garuda. Dr. Jana used Meyer’s scheme, the “Ultimate Tax Plan,” to fraudulently claim $764,350 in charitable contribution tax deductions for tax years 2012 through 2015. Meyer and his co-conspirators marketed the scheme as a way for high-income clients to reduce their taxes by claiming they had donated valuable property to charities Meyer controlled, while in reality retaining complete control and use over their “donated” assets. Clients, such as Dr. Jana, were able to use the funds in the purported charities’ accounts to pay for personal expenses. In fact, Dr. Jana used the funds he claimed to have donated to charity to, among other things, purchase several cars for him and his wife.
On Jan. 5, 2017, after claiming five years-worth of charitable contribution tax deductions, Dr. Jana bought back the company he had “donated” to Meyer’s charity for $10,000 — reclaiming his purported donation and exiting the plan.
On April 3, 2018, the Justice Department filed a civil complaint for permanent injunction against Meyer in U.S. district court. On May 24, 2018, the Justice Department served a civil subpoena on Dr. Jana requesting that he produce records in connection with the Ultimate Tax Plan. In response to the subpoena, Meyer and Garuda instructed Dr. Jana to pretend that the buyback did not occur. Meyer prepared backdated transaction documents, written acknowledgements and promissory notes for Dr. Jana to sign and submit in response to the civil subpoena. The false documents were created to make it look as if Dr. Jana signed the promissory notes at the time that he and his wife paid personal expenses out of the purported charity.
In June 2018, Dr. Jana signed the false documents and sent them to the Justice Department in response to the civil subpoena.
Dr. Jana is scheduled to be sentenced on March 7, 2025, and faces a maximum penalty of three years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. The Tax Division thanks U.S. Attorney Markenzy Lapointe for the Southern District of Florida for his office’s assistance.
IRS Criminal Investigation investigated the case.
Assistant Chief Michael Boteler and Trial Attorney Andrew Ascencio of the Tax Division are prosecuting the case.
Paragon Systems Agrees to Pay $52M to Resolve False Claims Act Allegations Concerning Fraudulently Obtained Small Business Contracts and KickbacksRead the Press Release
Herndon, Virginia-based contractor Paragon Systems Inc. (Paragon) has agreed to pay to the United States $52 million to settle allegations that the company violated the False Claims Act by knowingly causing purported small businesses that it controlled to fraudulently obtain small business set-aside contracts. The settlement further resolves allegations that Paragon violated the Anti-Kickback Act. Paragon is one of the federal government’s largest providers of specialized security, fire and emergency response and mission support services, and the company provides security guards at federal buildings throughout the United States.
“Those who fraudulently procure, or assist others to fraudulently procure, small business set-aside contracts will be held accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible companies obtain contracts reserved for veteran owned or socially or economically disadvantaged businesses, they prevent the small business community from receiving the contracting opportunities that Congress intended.”
The settlement resolves allegations that Paragon, acting through former high-ranking corporate executives, knowingly engaged in a fraudulent scheme to use purported small businesses that it controlled to obtain Department of Homeland Security (DHS) set-aside contracts reserved for Woman-Owned Small Businesses (WOSBs), Service-Disabled Veteran Owned Small Businesses (SDVOSBs) and other small businesses. The former high-ranking Paragon officials who carried out this alleged scheme included the company’s president, vice president of business development, vice president of operations, compliance manager and contracts manager. The United States contends the former Paragon executives engaged female relatives and friends to serve as figurehead owners of purported small businesses in order for those companies to obtain DHS set-aside contracts relating to the provision of security services at federal buildings, and that the Paragon-controlled companies then subcontracted substantially all of the work under the set-aside contracts to Paragon.
The settlement further resolves allegations that the purported small businesses surreptitiously paid substantial sums of money to the Paragon executives in violation of the Anti-Kickback Act. In total, the United States contends that the purported small businesses controlled by Paragon made over 300 separate payments to the former Paragon executives, totaling more than $11 million, which they attempted to conceal as purported “consulting payments” made to various shell companies formed by the former executives.
One of the purported small businesses, Athena Services International LLC (ASI) and its joint venture with Paragon, Athena Joint Venture Services LLC (AJVS), along with their owner, Alisa Silverman, have collectively agreed to pay more than $1.6 million to resolve their liability in connection with the alleged small business contracting fraud scheme. The settlement further resolves allegations that ASI, through Silverman, improperly received a Paycheck Protection Program loan that SBA forgave in full based on false representations that ASI complied with all PPP rules. The settlement with ASI, AJVS and Silverman is based on their ability to pay. The United States has filed a complaint against another purported small business, Patronus Systems Inc. and its owner Mabel O’Quinn, for their role in the alleged misconduct.
As part of the settlements, Paragon, ASI, AJVS and Silverman have agreed to cooperate with the department’s investigation of other parties and any related litigation.
“This settlement sends a message that flagrant misuse of government contracts through kickback schemes will not be tolerated,” said U.S. Attorney Erek L. Barron for the District of Maryland. “The integrity of our contracting programs is essential, and we remain committed to rooting out fraud that compromises fair access and accountability.”
“This settlement is the largest civil recovery in over a decade by the Department of Homeland Security Office of Inspector General (DHS-OIG),” said Inspector General Joseph V. Cuffari Ph.D of the DHS. “The settlement sends a clear message that the Federal Government will continue to investigate and prosecute fraud, waste, and abuse to protect small businesses owned by service-disabled veterans and other socially and economically disadvantaged individuals. I am grateful for the continued partnership with the Department of Justice and for the whistleblower who initiated the complaint.”
“Small Business Administration (SBA) programs must be preserved for truly small businesses,” said General Counsel Therese Meers of the SBA. “Fraud on SBA’s procurement programs deprives legitimate small businesses of important procurement opportunities, and fraud on the Paycheck Protection Program unconscionably undermines critical pandemic relief. The results in this matter reflect SBA’s and the government’s ongoing commitment to identifying and pursuing those who perpetrate such fraud.”
The settlements with Paragon, ASI, AJVS and Silverman resolve claims brought in a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The United States may intervene in the action, as it did in this case. The lawsuit is captioned United States ex rel. Pattison v. Paragon Systems Inc., et al., Case No. 21-3260 (DMD). As part of the settlement with Paragon, the whistleblower, Todd Pattison, will receive more than $9 million, and he will receive approximately $280,000 in connection with the settlement with ASI and Silverman.
The settlement was the result of a coordinated effort among the Civil Division’s Fraud Section, U.S. Attorney’s Office for the District of Maryland and DHS-OIG.
Senior Trial Counsel Alicia J. Bentley of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Sarah Marquardt for the District of Maryland handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability as to those claims.
Paragon Settlement
Athena - Silverman Settlement