District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Attorney General Announces $8.3 Million to <br /> Support Victims of Boston Marathon BombingsRead the Press Release
The U.S. Department of Justice’s Office for Victims of Crime (OVC) today announced a $8,355,648 grant to organizations providing direct support to assist the victims, witnesses and first responders involved in the events surrounding the Boston Marathon bombings in April 2013.
“This grant funding will provide critical support to many who were affected by last year’s terrorist attack on the Boston Marathon,” said Attorney General Eric Holder. “We will never forget the courage of the first responders, marathon participants, and bystanders who rushed to save lives on that terrible day, nor the heartbreak and pain of those who suffered injuries or lost friends and loved ones. With this grant, we reaffirm the Justice Department’s firm commitment to standing with the victims of this heinous crime – and all of the community leaders and service providers who continue to heal this remarkable and resilient city.”
On April 15, 2013, two pressure cooker bombs were detonated 13 seconds apart near the finish line of the Boston Marathon, killing three spectators and injuring hundreds more. On April 18, 2013, the suspects allegedly shot and killed an officer of the Massachusetts Institute of Technology Police Department. Subsequently, the two suspects allegedly carjacked a vehicle and took the vehicle’s owner hostage; he later escaped. On April 19, 2013, a Watertown, Mass., police officer identified the suspects and a gunfight ensued between the suspects and police in a Watertown neighborhood. This incident resulted in one suspect’s death when he was struck by a vehicle as the other suspect fled the scene. Later that day, police apprehended the remaining suspect in a different Watertown neighborhood. Victims affected include those in the vicinity of the bombings as well as the residents of neighborhoods in which subsequent events unfolded. An estimated 1,000 victims will require crisis and/or longer-term recovery services.
OVC provided the Antiterrorism and Emergency Assistance Program (AEAP) grant to the Massachusetts Office for Victim Assistance (MOVA).
“MOVA has worked diligently with OVC and our federal, state and local partners to serve those impacted by the Boston Marathon bombings, while planning a longer term solution to meet their evolving needs in the years to come,” said MOVA Executive Director Liam Lowney. “We are grateful to OVC for its continued support in developing a response that is tailored to specifically address the physical and emotional injuries caused to so many individuals, their families and our community as a whole by this tragedy.”
This award will include costs, both incurred and anticipated, for organizations providing crisis intervention services and trauma-informed care, continuum of care, socioeconomic support, wrap-around legal services and other victim assistance.
“OVC is committed to promoting healing and justice for all victims of crime,” said OVC Director Joye Frost. “We acknowledge the hardships that all victims of crime face and recognize the enormous physical, emotional and financial toll of the Boston bombings on victims and their loved ones. Many of these bombing victims face serious and protracted medical problems as well as long-term financial loss and emotional upheaval. This award will ensure that Boston and the state of Massachusetts can provide critical support to victims and their families as they work to restore a sense of normalcy to their lives.”
In 1995, following the Oklahoma City bombing, Congress authorized OVC to set aside and administer up to $50 million annually from the Crime Victims Fund for the Antiterrorism Emergency Reserve Fund to assist victims in extraordinary circumstances. Following an act of terrorism or mass violence, jurisdictions can apply for an AEAP grant award for crisis response, criminal justice support, crime victim compensation and training and technical assistance expenses. OVC also provided AEAP funds and assistance following the shootings in Newtown, Conn. (2012); Oak Creek, Wis. (2012); Aurora, Colo. (2012); Tucson, Ariz. (2011); Binghamton, N.Y. (2009); and at the Virginia Polytechnic Institute and State University (2007).
For more information on the AEAP program, please visit www.ojp.usdoj.gov/ovc/AEAP/index.html.
The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the Nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.
Alabama Man Pleads Guilty to Tax Fraud and Identity TheftRead the Press Release
Nakia Jackson pleaded guilty to one count of conspiracy to defraud the United States and one count of aggravated identity theft for his role in a stolen identity refund fraud scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division, U.S. Attorney George L. Beck Jr. for the Middle District of Alabama and the Internal Revenue Service (IRS).
According to court documents, between January 2009 and March 2011, Jackson obtained stolen identities from an Alabama state employee and used those identities to file false tax returns. Jackson recruited a bank employee, LaQuanta Clayton, to assist him in having the false income tax refunds deposited into various bank accounts. He obtained permission from several individuals to use their bank accounts to receive false refunds and when a false refund was deposited, Jackson would direct the individuals to withdraw the money and give the money to him. In total, Jackson filed over 100 false tax returns and requested over $400,000 in refunds.
Sentencing has been scheduled for April 23, 2014. Jackson faces a statutory minimum sentence of two years in prison and a statutory maximum sentence of 12 years in prison, three years of supervised release, restitution and a maximum fine of $250,000, or twice the loss caused by the offense. LaQuanta Clayton has already pleaded guilty and is awaiting sentencing.
IRS-Criminal Investigation agents investigated this case and Tax Division Trial Attorneys Charles M. Edgar Jr. and Michael Boteler and Assistant U.S. Attorney Todd Brown are prosecuting the case.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax .
U.S. Departments of Justice and Commerce Name Experts <br /> to First-ever National Commission on Forensic ScienceRead the Press Release
The U.S. Department of Justice and the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) today announced appointments to a newly created National Commission on Forensic Science.
Members of the commission will work to improve the practice of forensic science by developing guidance concerning the intersections between forensic science and the criminal justice system. The commission also will work to develop policy recommendations for the U.S. Attorney General, including uniform codes for professional responsibility and requirements for formal training and certification.
The commission is co-chaired by Deputy Attorney General James M. Cole and Under Secretary of Commerce for Standards and Technology and NIST Director Patrick D. Gallagher. Nelson Santos, deputy assistant administrator for the Office of Forensic Sciences at the Drug Enforcement Administration, and John M. Butler, special assistant to the NIST director for forensic science, serve as vice-chairs.
“I appreciate the commitment each of the commissioners has made and look forward to working with them to strengthen the validity and reliability of the forensic sciences and enhance quality assurance and quality control,” said Deputy Attorney General Cole. “Scientifically valid and accurate forensic analysis supports all aspects of our justice system.”
The commission includes federal, state and local forensic science service providers; research scientists and academics; law enforcement officials; prosecutors, defense attorneys and judges; and other stakeholders from across the country. This breadth of experience and expertise reflects the many different entities that contribute to forensic science practice in the U.S. and will ensure these broad perspectives are represented on the commission and in its work.
“This new commission represents an extremely broad range of expertise and skills,” said Under Secretary Gallagher. “It will help ensure that forensic science is supported by the strongest possible science-based evidence gathering, analysis and measurement.
“This latest and most impressive collaboration between the Department of Justice and the National Institute of Standards and Technology will help ensure that the forensic sciences are supported by the most rigorous standards available—a foundational requirement in a nation built on the credo of ‘justice for all,’” said John P. Holdren, Assistant to the President for Science and Technology and Director of the White House Office of Science and Technology Policy.
The following commissioners were chosen from a pool of more than 300 candidates:
Suzanne Bell, Ph.D. , Associate Professor, West Virginia University; Frederick Bieber, Ph.D., Medical Geneticist, Brigham and Women’s Hospital and Associate Professor of Pathology, Harvard Medical School; Thomas Cech, Ph.D. , Distinguished Professor, University of Colorado, Boulder; Cecelia Crouse, Ph.D. , Director, Palm Beach County Sheriff’s Office Crime Laboratory; Gregory Czarnopys , Deputy Assistant Director, Forensic Services, Bureau of Alcohol, Tobacco, Firearms, and Explosives; M. Bonner Denton, Ph.D. , Professor, University of Arizona; Vincent Di Maio, M.D., Consultant in Forensic Pathology; Troy Duster, Ph.D. , Chancellor’s Professor and Senior Fellow, Warren Institute on Law and Social Policy, University of California, Berkeley; Jules Epstein , Associate Professor of Law, Widener University; Stephen Fienberg, Ph.D. , Maurice Falk University Professor of Statistics and Social Science, Carnegie Mellon University; Andrea Ferreira-Gonzalez, Ph.D. , Professor of Pathology and Director Molecular Diagnostics Laboratory, Virginia Commonwealth University; John Fudenberg , Assistant Coroner, Office of the Coroner/Medical Examiner, Clark County, Nevada; S. James Gates, Jr., Ph.D. , University System Regents Professor and John S. Toll Professor of Physics, University of Maryland; Dean Gialamas , Crime Laboratory Director, Los Angeles County Sheriff’s Department, Scientific Services Bureau; Paul Giannelli , Distinguished University Professor and Albert J Weatherhead III and Richard W. Weatherhead Professor of Law, Case Western Reserve University; Hon. Barbara Hervey , Judge, Texas Court of Criminal Appeals; Susan Howley , Public Policy Director, National Center for Victims of Crime; Ted Hunt , Chief Trial Attorney, Jackson County Prosecuting Attorney’s Office, Kansas City, Missouri; Linda Jackson , Director, Virginia Department of Forensic Science; John Kacavas , United States Attorney, District of New Hampshire; Pamela King, Assistant State Public Defender, Minnesota State Public Defender Office; Marc LeBeau, Ph.D. , Senior Forensic Scientist, Scientific Analysis Section, Federal Bureau of Investigation; Julia Leighton , General Counsel, Public Defender Service, District of Columbia; Hon. Bridget Mary McCormack , Justice, Michigan Supreme Court; Peter Neufeld , Co-Director, Innocence Project, Benjamin Cardozo School of Law; Phil Pulaski , Chief of Detectives, New York City Police Department; Hon. Jed Rakoff , Senior United States District Judge, Southern District of New York; Matthew Redle , Sheridan County and Prosecuting Attorney, Sheridan, Wyoming; Michael “Jeff” Salyards, Ph.D. , Executive Director, Defense Forensic Science Center, Department of the Army; and Ryant Washington , Sheriff, Fluvanna County Sherriff’s Office, Fluvanna, Virginia.Ex-Officio Members:
David Honey, Ph.D. , Assistant Deputy Director of National Intelligence for Science and Technology and Director of Science and Technology, Office of the Director of National Intelligence; Marilyn Huestis, Ph.D., Chief, Chemistry and Drug Metabolism Section, National Institute on Drug Abuse, National Institutes of Health; Gerald LaPorte , Acting Director, Office of Investigative and Forensic Sciences, National Institute of Justice; Patricia Manzolillo , Laboratory Director, Forensic Laboratory Services, U.S. Postal Inspection Service; Frances Schrotter , Senior Vice President and Chief Operation Officer, American National Standards Institute; Kathryn Turman , Assistant Director, Office for Victim Assistance, Federal Bureau of Investigation; and Mark Weiss, Ph.D. , Division Director, Behavioral and Cognitive Sciences, National Science Foundation.
The first meeting of the Commission will be held February 3-4, 2014, at 810 7th Street, N.W., Washington, DC. The membership list, notice of meetings, commission charter and other related material will be maintained within the General Service Administration’s Federal Advisory Committee Act (FACA) database at http://www.facadatabase.gov .
As a non-regulatory agency of the U.S. Department of Commerce, NIST promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards and technology in ways that enhance economic security and improve our quality of life. To learn more about NIST, visit www.nist.gov .Statement by Attorney General Eric Holder on Federal Recognition of Same-Sex Marriages in UtahRead the Press Release
Attorney General Eric Holder issued the following statement today on the status of same-sex marriages performed in the state of Utah:
“Last June, the Supreme Court issued a landmark decision – in United States v. Windsor – holding that Americans in same-sex marriages are entitled to equal protection and equal treatment under the law. This ruling marked a historic step toward equality for all American families. And since the day it was handed down, the Department of Justice has been working tirelessly to implement it in both letter and spirit—moving to extend—federal benefits to married same-sex couples as swiftly and smoothly as possible.
"Recently, an administrative step by the court has cast doubt on same-sex marriages that have been performed in the state of Utah. And the governor has announced that the state will not recognize these marriages pending additional court action.
"In the meantime, I am confirming today that, for purposes of federal law, these marriages will be recognized as lawful and considered eligible for all relevant federal benefits on the same terms as other same-sex marriages. These families should not be asked to endure uncertainty regarding their status as the litigation unfolds. In the days ahead, we will continue to coordinate across the federal government to ensure the timely provision of every federal benefit to which Utah couples and couples throughout the country are entitled – regardless of whether they are in same-sex or opposite-sex marriages. And we will continue to provide additional information as soon as it becomes available.”A video recording of the Attorney General delivering the above statement can be viewed at: www.justice.gov/video.php.
Justice Department Issues Statement on U.S. District Court Ruling That <br /> Bazaarvoice’s Acquisition of PowerReviews Violated Antitrust LawsRead the Press Release
Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division made the following statement today after the U.S. District Court for the Northern District of California found that Bazaarvoice Inc. violated Section 7 of the Clayton Act by acquiring its primary rival, PowerReviews Inc:“By acquiring its only significant rival, Bazaarvoice deprived its customers of the benefits of competition. We are pleased that the court, after carefully weighing all of the evidence, agreed with the Justice Department that Bazaarvoice’s acquisition of PowerReviews was likely to extinguish price competition and substantially diminish the pace of innovation in the market for product ratings and reviews platforms.
“As shown during trial, Bazaarvoice executives clearly intended to eliminate competition by acquiring PowerReviews. Consistent with Bazaarvoice’s own pre-merger view of the marketplace, the evidence presented at trial demonstrated that PowerReviews was a significant threat to Bazaarvoice and that other rivals are poorly positioned to fill the competitive void created by the merger.
“I am proud of the excellent work done by the trial team on behalf of U.S. consumers. As today’s decision reaffirms, anticompetitive transactions that are not reported to federal agencies will not receive a free pass from antitrust scrutiny.”
Background
On Jan.10, 2013, the department filed a civil antitrust lawsuit in the U.S. District Court for the Northern District of California against Bazaarvoice. The department alleged that Bazaarvoice’s June 2012 acquisition of PowerReviews eliminated the company’s only significant rival, in violation of the antitrust laws.
Bazaarvoice’s acquisition of PowerReviews was not required to be reported under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, which requires companies to notify and provide information to the department and the Federal Trade Commission before consummating certain acquisitions. The department began its investigation shortly after the transaction closed.
The department’s trial against Bazaarvoice, which was overseen by Judge William Orrick, began on Sept. 23, 2013. The trial lasted three weeks, with closing arguments taking place on Oct. 15, 2013. The court scheduled a hearing on Jan. 22, 2014, to discuss procedures for the remedy phase of the litigation.
Irish National Sentenced to Serve 14 Months in Prison for Trafficking of Endangered Rhinoceros HornsRead the Press Release
Michael Slattery Jr., an Irish national, was sentenced in federal court in Brooklyn, N.Y., today to serve 14 months in prison to be followed by three years of supervised release, for conspiracy to violate the Lacey Act in relation to illegal rhinoceros horn trafficking, announced Acting Assistant Attorney General Robert G. Dreher for the Environment and Natural Resources Division of the Department of Justice, U.S. Attorney Loretta E. Lynch for the Eastern District of New York, and Director Dan Ashe of the U.S. Fish and Wildlife Service. Slattery was also sentenced to pay a $10,000 fine and forfeit $50,000 of proceeds from his illegal trade in rhino horns.
Slattery was arrested in September 2013 as part of “Operation Crash,” a nation-wide crackdown in the illegal trafficking in rhinoceros horns, for his role in trafficking raw rhinoceros horns from Texas to customers in New York. Slattery was sentenced today by U.S. District Judge John Gleeson of the Eastern District of New York.
“Mr. Slattery is today being held accountable for his participation in the illegal trade in wildlife species and products, which threatens the very existence of highly-endangered rhino species,” said Acting Assistant Attorney General Dreher. “We will continue this active and ongoing investigation and wish to send a clear message to buyers and sellers that we will vigorousl y prosecute those who are involved in this devastating trade.
“We take seriously our obligation to protect these links to the Earth’s prehistoric past,” said U.S. Attorney Lynch. “Michael Slattery’s actions were part of the exploitation and decimation of these animals from their only known predator – man. He is now being held to account for his actions in furthering this devastating trade.”
“We’re reaching a tipping point, where the unprecedented slaughter of rhinos and elephants happening now threatens the viability of these iconic species’ wild populations in Africa,” said Director Ashe. “This slaughter is fueled by illegal trade, including that exposed by Operation Crash. We will continue to work relentlessly across the United States government and with our international partners to crack down on poaching and wildlife trafficking.”
According to the information, plea agreement and statements made during court proceedings:
In China and Vietnam, rhinoceros horns are highly prized because they are believed to have medicinal value. The escalating value of the horns has resulted in an increased demand that has helped fuel a thriving black market.
In pleading guilty, Slattery admitted to participating in a conspiracy to travel to and within the United States to purchase rhinoceros horns, which he, along with others, then resold to private individuals or consigned to auction houses in the United States, knowing that the interstate purchase and sale of the horns was illegal. Due to their dwindling populations, all rhinoceros species are protected under international trade agreements.
Rhinoceros are a herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
Operation Crash is a continuing investigation being conducted by the Department of the Interior’s Fish and Wildlife Service (FWS) in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
The investigation was handled by the U.S. Fish & Wildlife Service, the U.S. Attorney’s Office for the Eastern District of New York and the Justice Department’s Environmental Crimes Section. Assistant U.S. Attorney Julia Nestor and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section are in charge of the prosecution.Guam and NMI U.S. Attorney’s Office Collects $575,199.11 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
(Hagatna, Guam) - U.S. Attorney ALICIA A.G. LIMTIACO announced today that the Districts of Guam and the Northern Mariana Islands collected $575,199.11 in criminal and civil actions in Fiscal Year 2013. Of this amount, $542,674.11was collected in criminal actions and $32,525 was collected in civil actions
Attorney General Eric Holder announced on Thursday that the Justice Department collected $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“During this time of economic and fiscal challenges, these collections are more important than ever,” said U.S. Attorney Limtiaco. “The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for victims of federal crime and for the federal treasury. We will continue to hold accountable those who seek to profit from their illegal activities.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
dditionally, the U.S. Attorney’s office in Guam working with partner agencies and divisions, collected$36,220.00 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Former HealthEssentials Solutions Inc. Executives to Pay More <br /> Than $1 Million to Resolve Allegations of Submitting False Claims <br /> to Federal Health Care ProgramRead the Press Release
Michael R. Barr, former chief executive officer of Louisville, Kentucky-based HealthEssentials Solutions Inc., has agreed to pay $1 million to resolve allegations that he knowingly caused HealthEssentials to submit false claims to Medicare between 1999 and 2004, the Justice Department announced today. Norman J. Pfaadt, HealthEssentials’ former chief financial officer, also agreed to pay $20,000 to resolve similar allegations. H ea lt h E s s e nt i a ls p r o vi d ed p r i m a ry m e di c al c a re to p a ti e nts in nursing fa cilit ies, assisted living facilities and other settings from 1998 until it filed for bankruptcy and ceased operations in 2005. Barr founded HealthEssentials and served as its president, chief executive and board chairman. Pfaadt served as HealthEssentials’ senior vice president and chief financial officer.
“Healthcare executives should lead by example and create cultures of compliance within their companies, not pressure their employees to cheat the taxpayers,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will continue to hold health care executives personally accountable for their dealings with Medicare.”
“Pursuing health care fraud is a priority of this office and the Department of Justice,” said U.S. Attorney for the Western District of Kentucky David J. Hale. “We will continue to work with the Department of Health and Human Services and the public to ensure that fraudulent claims are investigated and those responsible are required to pay.”
In March 2008, HealthEssentials pleaded guilty to submitting false statements to Medicare relating to services it provided to patients in assisted living facilities and entered into a civil settlement with the government. In May 2011, HealthEssentials’ former director of billing, Karen Stone, pleaded guilty for her role in the company’s billing scheme.
The settlement announced today resolves Barr’s and Pfaadt’s alleged liability under the False Claims Act for their roles in HealthEssentials’ false billings. The government alleged that, between 1999 and 2004, HealthEssentials billed for services that were inflated or not medically necessary and that Barr and Pfaadt pressured HealthEssentials employees to inflate the company’s billings, despite having been advised by attorneys and others that doing so would be improper. The government further alleged that Barr pressured HealthEssentials employees to conduct special medical assessments on patients, without regard to whether the patients required the assessments, solely to increase the amount that HealthEssentials could bill for the visits. As part of the settlement, Barr has agreed to a three-year period of exclusion from participating in federally funded health care programs.“Executives cheating taxpayers and patients – as alleged in this case – should beware of exclusion from Medicare, Medicaid and all other federal health programs, as well as criminal and civil liability,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Vulnerable beneficiaries deserve protection from potentially harmful, medically unnecessary services.”
The allegations that were resolved by the settlement arose in part from a lawsuit filed by former HealthEssentials employees Michael and Leigh RoBards under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring suit on behalf of the government and to share in any recovery. Mr. and Mrs. RoBards will receive a total of $153,000.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was handled by the Commercial Litigation Branch, Civil Division, U.S. Department of Justice and the U.S. Attorney’s Office for the Western District of Kentucky, with assistance from the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
The claims settled by this agreement are allegations only; there has been no determination of liability. The case is captioned United States ex rel. Stydinger, et al. v. Michael R. Barr and Norman J. Pfaadt, Civil No. 3:03-cv-00380-TBR (W.D. Ky.).Fifth Former Georgia Prison Officer Pleads Guilty in Connection with the Assault of an Inmate and the Cover-Up That FollowedRead the Press Release
Today, the Department of Justice and the U.S. Attorney for the Middle District of Georgia announced that Kerry Bolden, a former employee of the Correctional Emergency Response Team (CERT) at Macon State Prison (MSP) in Oglethorpe, Ga., pleaded guilty to civil rights and conspiracy charges. Bolden is the fifth former MSP officer to enter a guilty plea in connection with the ongoing federal investigation into a series of staff assaults of MSP inmates.
According to court documents filed in connection with his guilty plea, Bolden admitted that he and other CERT members escorted inmates to the gym, where CERT members would beat the inmates in retaliation for the inmates’ prior assault of a MSP officer. Bolden recognized that the inmates had been injured by CERT’s unjustified use of force, and he also knew, based on past experience, that CERT members would submit false reports to cover up their abuse of inmates. Bolden admitted that he personally submitted a false report, which omitted any reference to the unjustified force used on, or injuries inflicted upon, an inmate, who ultimately had to be transported by ambulance to a nearby hospital. MSP supervisors told Bolden to stick to his false report when interviewed by investigators regarding the assault of the inmate.
“ The majority of corrections officers serve their communities with honor and integrity,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “When officers abuse those entrusted to their care and then use their official position to cover it up, we will continue to investigate, prosecute, and hold them accountable.”
Bolden, who is 47, and from Vienna, Ga., faces a statutory maximum sentence of 15 years in prison.
“Today’s guilty plea is another example of the zero tolerance the Department of Justice has for correctional officers who use their position to try to cover up official misconduct,” said U.S. Attorney Michael J. Moore for the Middle District of Georgia.
This case is being investigated by the FBI, and is being prosecuted by Trial Attorneys Forrest Christian and Tona Boyd of the Civil Rights Division’s Criminal Section, with the assistance of the U.S. Attorney’s Office for the Middle District of Georgia and the support of the Georgia Bureau of Investigation.
12th Former Officer at Roxbury Correctional Institution Pleads Guilty and Admits Assault of an InmateRead the Press Release
Michael Morgan, formerly an officer at Roxbury Correctional Institution (RCI) in Hagerstown, Md., pleaded guilty today to assaulting an inmate on March 9, 2008, announced the Justice Department and the U.S. Attorney’s Office for the District of Maryland. Morgan is the 12th former RCI officer to enter a plea in connection with the federal investigation into a series of assaults that the inmate, identified by the initials K.D., suffered at RCI on March 8-9, 2008. According to court documents filed in connection with his guilty plea, Morgan admitted that he assaulted K.D. by kicking the inmate in the area of his groin. Morgan acknowledged that he kicked K.D. in order to punish him for his prior misconduct. Morgan also admitted that he lied under oath in 2008, when he falsely denied both assaulting K.D. and having any knowledge of an assault of the inmate.
“Mr. Morgan has admitted that, as a correctional officer, he – and others – violated a person’s constitutional rights and then lied to cover up their on-duty misconduct,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute officers who use their official position to commit and to cover up violations of federal criminal law.”
Morgan faces a statutory maximum penalty of 10 years in prison. Sentencing is set for April 23, 2014, before U.S. District Judge James K. Bredar.
In related cases before Judge Bredar, former RCI Correctional Officers Ryan Lohr, Dustin Norris, Philip Mayo, Jeremy McCusker, Walter Steele, Lanny Harris, Keith Morris, Tyson Hinckle and Reginald Martin, and former RCI Lieutenants Robert Harvey and Edwin Stigile each has entered a guilty plea. Two former RCI officers previously entered guilty pleas in state court.
Three current or former RCI officers still face federal charges in connection with this incident. These officers are innocent until proven guilty in a court of law.
The investigation by the Frederick Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorneys Sanjay Patel and Christine Siscaretti of the Civil Rights Division of the Department of Justice, with the assistance of Michael Cunningham of the U.S. Attorney’s Office for the District of Maryland.
Two More Former Officers and Another Former Lieutenant at Roxbury Correctional Institution Plead Guilty for Conduct Related to the Assault of an InmateRead the Press Release
Edwin Stigile, formerly a Lieutenant at Roxbury Correctional Institution (RCI) in Hagerstown, Md., and two former RCI Correctional Officers, Tyson Hinckle and Reginald Martin, each pleaded guilty to an offense arising out of the assault of an inmate on Mar. 9, 2008. Hinckle pleaded guilty to conspiring to assault an inmate, identified by the initials K.D. Martin pleaded guilty to failing to intervene to stop the assault of K.D. Stigile admitted that he was guilty of destroying evidence related to that assault. Hinckle, Martin and Stigile are the ninth, 10th and 11th former RCI officers to enter a plea in connection with the federal investigation into a series of assaults that K.D. suffered at RCI on Mar. 8-9, 2008.
According to court documents filed in connection with his guilty plea, Hinckle admitted that, during the 7 a.m.-3 p.m. shift on Mar. 9, 2008, that he, Dustin Norris and three other RCI officers assaulted K.D. in order to punish him for striking an officer during a prior shift. Hinckle also admitted that this assault in 2008 was consistent with prior incidents at RCI, where officers from three consecutive shifts would beat an inmate who had previously assaulted an officer. Finally, Hinckle admitted that he and other officers tried to cover up their involvement in, or knowledge of, the assault of K.D.
Martin admitted that, during the 7 a.m.-3 p.m. shift on Mar. 9, 2008, he watched RCI officers assault K.D. Instead of stopping the assault, however, Martin walked out of K.D.’s cell and waited. After some time, Martin heard a supervisor say, “He’s had enough.” The officers then filed out of K.D.’s cell. Later, when investigators began to ask to about K.D.’s injuries, Martin met with officers who had been involved in the beating and agreed to falsely deny any knowledge of an assault of K.D.
Stigile, a former lieutenant, admitted that he used a magnetic device to alter and destroy surveillance videotapes related to RCI officers’ assaults of inmates, including the beating of K.D. Stigile also admitted that, when questioned about K.D. in 2012, he provided false and misleading statements to federal investigators and to a federal grand jury.
“Mr. Hinckle and Mr. Martin have admitted their involvement in an unlawful assault of an inmate, and Mr. Stigile has acknowledged that, as a supervisor, he destroyed evidence related to that assault,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute officers who use their official position to commit and to cover up violations of federal criminal law.”
Stigile faces a statutory maximum penalty of 20 years in prison. Hinckle and Martin each could receive a statutory maximum sentence of 10 years of incarceration. All will be sentenced before U.S. District Judge James K. Bredar, and their sentencing dates are as follows: Stigile will be sentenced Jun. 17, 2014, Hinckle will be sentenced Apr. 7, 2014 and Martin will be sentenced May 15, 2014.
In related cases before Judge Bredar, former RCI Correctional Officers Ryan Lohr, Dustin Norris, Philip Mayo, Jeremy McCusker, Walter Steele, Lanny Harris, Keith Morris and former RCI Lieutenant Robert Harvey each has entered a guilty plea. Four current or former RCI officers still face federal charges in connection with the alleged assault of K.D. Two former RCI officers previously entered guilty pleas in state court.
The investigation by the Frederick Resident Agency of the Federal Bureau of Investigation is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division, with the assistance of Michael Cunningham of the U.S. Attorney’s Office for the District of Maryland.
Two Citizens of Malaysia Sentenced in U.S. District CourtRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that Defendant Rosalina M.T. Gabutin, age 45, was sentenced on January 6, 2014, in the District Court of Guam to serve 48 months in federal prison followed by five years of supervised release for her conviction on multiple counts of bank fraud and aggravated identity theft. Gabutin was also ordered to pay $49,017.17 to the victims of her criminal conduct.
This case was investigated by the U.S. Secret Service and was prosecuted by Assistant U.S. Attorney Marivic David.
Gabutin worked as an administrative assistant between 2009 and 2010 with Golden Formosa Jewelry International Guam which rents commercial property. She stole rental payments from her employer’s commercial tenants, forged checks, and negotiated them with financial institutions. She also forged her employer’s signature on some of the checks.
Gabutin was also ordered to serve an additional 10 months in prison for a 2010 bank fraud case on account that she committed the above-referenced new bank fraud and aggravated identity theft crimes while she was on supervised release with the U.S. Probation Office for the prior case.
U.S. Attorney Alicia A.G. Limtiaco stated, “Identity theft and related white collar and financial fraud crimes victimize individuals, financial institutions and merchants. The U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands and the Department of Justice are committed to combating identity theft and other white collar and financial fraud crimes. We will continue to dedicate federal resources effectively to prevent, investigate and prosecute the unlawful use of identifying information. Federal and local law enforcement are committed to protecting our community and consumers against theft, fraud and other related criminal activity.”Rosalina Marie Tudela Gabutin Sentenced in U.S. District CourtRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that Defendant Rosalina M.T. Gabutin, age 45, was sentenced on January 6, 2014, in the District Court of Guam to serve 48 months in federal prison followed by five years of supervised release for her conviction on multiple counts of bank fraud and aggravated identity theft. Gabutin was also ordered to pay $49,017.17 to the victims of her criminal conduct.
This case was investigated by the U.S. Secret Service and was prosecuted by Assistant U.S. Attorney Marivic David.
Gabutin worked as an administrative assistant between 2009 and 2010 with Golden Formosa Jewelry International Guam which rents commercial property. She stole rental payments from her employer’s commercial tenants, forged checks, and negotiated them with financial institutions. She also forged her employer’s signature on some of the checks.
Gabutin was also ordered to serve an additional 10 months in prison for a 2010 bank fraud case on account that she committed the above-referenced new bank fraud and aggravated identity theft crimes while she was on supervised release with the U.S. Probation Office for the prior case.
U.S. Attorney Alicia A.G. Limtiaco stated, “Identity theft and related white collar and financial fraud crimes victimize individuals, financial institutions and merchants. The U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands and the Department of Justice are committed to combating identity theft and other white collar and financial fraud crimes. We will continue to dedicate federal resources effectively to prevent, investigate and prosecute the unlawful use of identifying information. Federal and local law enforcement are committed to protecting our community and consumers against theft, fraud and other related criminal activity.”Michigan Companies to Pay $3.8 Million to Resolve Allegations of <br /> Falsely Claiming Disadvantaged Business CreditsRead the Press Release
The Justice Department announced today that two related entities, Michigan-based Cadillac Asphalt LLC (Cadillac) and Michigan Paving and Materials Co. (MPM), have agreed to pay $3.8 million to resolve allegations that they falsely claimed Disadvantaged Business Enterprise (DBE) credits on a number of federally funded transportation projects. Both Cadillac and MPM are subsidiaries of Oldcastle Materials Inc., a construction material and services provider based in Atlanta.
“The Disadvantaged Business Enterprise program helps businesses owned by minorities and women to work on federally funded projects,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Those who falsely claim credits under the program to obtain federal funds victimize both the taxpayers and the businesses that the program is designed to assist.”
“The U.S. Attorney’s Office works with the Civil Division in Washington to use civil enforcement to recover funds for taxpayers,” said U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade. “In this case, civil attorneys were able to recover more than $3 million that was obtained through false claims.”The settlement announced today resolves allegations that Cadillac and MPM knowingly and falsely claimed DBE credit for asphalt purportedly supplied by a DBE known as BN&M Trucking Inc. As a condition of federal funding, contractors, such as Cadillac and MPM, working on a federally funded project must make a good-faith attempt to meet DBE participation goals. For the contractors to meet their DBE participation goal, a DBE employed by the contractors must be independently responsible for performing a portion of the work with its own employees and equipment. Allegedly, BN&M Trucking was merely a pass-through company that did not supply any asphalt or perform any other commercially useful function.
“We remain steadfast in our commitment to maintaining the integrity of the U.S. Department of Transportation’s (USDOT) Disadvantaged Business Enterprise program,” said regional Special Agent-in-Charge of USDOT’s Office of Inspector General Michelle T. McVicker. “Working with the Secretary of Transportation, other DOT leaders and our law enforcement colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”
The allegations resolved by the settlement involved numerous federally funded transportation projects in Michigan between 2006 and 2010, including a project to construct a new runway at Detroit Metropolitan Wayne County Airport in 2008 and 2009. In November 2010, two other entities, John Carlo Inc. and Angelo Iafrate Construction Co. Inc., paid more than $1 million to resolve similar allegations related to the airport runway project.
This case was handled by the Justice Department’s Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Office for the Eastern District of Michigan and the Department of Transportation Office of Inspector General. The claims settled in this case are allegations only; there has been no determination of liability.
Justice Department Collects More Than $8 Billion in Civil and Criminal Cases in Fiscal Year 2013Read the Press Release
Attorney General Eric Holder today announced that the Justice Department collected at least $8 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013.
“The department’s enforcement actions not only help to ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
The statistics indicate that in FY 2013, approximately $5.9 billion was collected by the department’s litigating divisions and the U.S. Attorneys’ offices in individually and jointly handled civil actions. The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct and collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. This number includes approximately $3.2 billion related to health care fraud and more than $430 million related to environmental cases. In addition, civil debts were collected on behalf of several federal agencies, including the Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
The Justice Department’s litigating divisions and U.S. Attorneys’ offices are also responsible for enforcing and collecting criminal debts owed to the U.S. and criminal debts owed to federal crime victims. In FY 2013, the total amount collected in criminal actions totaled approximately $2.2 billion in restitution, criminal fines and felony assessments. This total included more than $450 million in criminal fines associated with health care fraud, more than $600 million in antitrust violation fines, more than 390 million in fines for environmental violations and more than $42 million in fines for tax fraud violations.
The approximately $8.1 billion taken in by the department as a whole in FY 2013 represents nearly three times the approximately $2.76 billion of the department’s direct appropriations that pay for the 94 U.S. Attorneys’ offices and its main litigating divisions.
The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $5.48 billion in payments made directly to the Justice Department, and $2.61 billion in indirect payments made to other federal agencies, states and other designated recipients.
In measuring collections recovered in FY 2013, this figure necessarily includes some cases that were resolved in previous years but the proceeds of which were collected in FY 2013.FY 2013 Collections Highlights
Health Care Fraud - Abbott, Amgen (Civil Division; U.S. Attorneys Offices)
As in previous years, the largest collections related to health care fraud. For example, the Justice Department collected more than $800 million of its total $1.5 billion settlement with Abbott Laboratories resolving criminal and civil allegations that Abbott illegally promoted the drug Depakote to treat agitation and aggression in elderly dementia patients and schizophrenia when neither of these uses was approved as safe and effective by the FDA. Of the total, Abbott paid a $500 criminal fine in FY 2012 following its guilty plea (the total $1.5 billion settlement also includes nearly $200 million in forfeited assets). In another major pharmaceutical case, the U.S. collected more than $748 million from its total $762 million settlement (including $14 million in forfeited assets) with biotech giant Amgen Inc. to settle allegations including Amgen’s illegal promotion of Aranesp, a drug used to treat anemia, in doses not approved by the FDA and for off-label use to treat non-anemia-related conditions. For details, see Abbott , Abbott sentencing , and Amgen .
Deepwater Horizon (Criminal Division; Environment and Natural Resources Division; Civil Division; U.S. Attorneys Offices)
Among other major collections in FY 2013 were penalties and fines collected from BP Exploration and Production Inc., and Transocean Deepwater Inc., stemming from their roles in the disastrous April 2010 Deepwater Horizon rig explosion in the Gulf of Mexico that cost 11 men their lives and resulted in the largest oil spill in U.S. history.
Out of the $4 billion total criminal settlement with BP, the U.S. collected $256 million in criminal fines in FY 2013 following January 2013 convictions for manslaughter, obstruction of justice and environmental crimes. The U.S. will recover an additional $1 billion in criminal fines from the resolution over the next four years under the court schedule. An additional $2.39 billion in non-fine criminal penalties is dedicated to environmental and wildlife conservation efforts in the Gulf, as well as $350 million in spill prevention and response efforts. During FY 2013, BP made initial payments of $105 million towards these additional obligations, and will pay the rest over the next four years, under the court’s schedule.
In FY 2013, the department collected $100 million in criminal fines owed by Transocean for its role in the oil spill. Transocean also paid $60 million towards an additional $300 million in non-fine criminal penalties slated for Gulf conservation, spill prevention and response efforts, and it paid $404 million of $1 billion in civil penalties imposed under the Clean Water Act.
The efforts to hold accountable those responsible for the disaster continue. For details, see BP and Transocean settlements.Price Fixing and Bid Rigging – AU Optronics (Antitrust Division)
Some of the department’s largest collections related to the Antitrust Division’s criminal prosecutions of international conspiracies to fix prices, rig bids and allocate markets. For example, in FY 2013, the Justice Department collected more than $326 million from its total of $1.39 billion in criminal fines resulting from its investigation into price fixing of thin-film transistor liquid crystal display (LCD) panels. For instance, $250 million was collected in FY 2013 from LCD manufacturer AU Optronics’ $ 500 million total fine for its conviction after an eight-week trial . For details, see LCD . In addition, the United States collected more than $124 million in criminal fines in FY 2013 related to the department’s ongoing investigation into price fixing and bid rigging in the automotive parts industry, out of a total of more than $1.6 billion in fines obtained in the investigation through FY 2013. For details, see Auto Parts .Tax Conspiracy – Wegelin & Co. (Tax Division)
The U.S. collected more than $42 million in restitution and fines in a single tax case involving Wegelin & Co., a Swiss private bank that pleaded guilty to conspiring with U.S. taxpayers and others to hide more than $1.2 billion in secret Swiss bank accounts and the income generated in these accounts from the Internal Revenue Service (IRS). As part of its guilty plea, Wegelin agreed to pay approximately $20 million in restitution to the IRS and to pay a $22.05 million fine. In addition, Wegelin agreed to the civil forfeiture of an additional $15.8 million, representing the gross fees earned by the bank on the undeclared accounts of U.S. taxpayers.Georgia Husband and Wife Tax Return Preparers Plead Guilty to Tax CrimesRead the Press Release
Detrick and Natashia Tucker, a husband and wife who owned and operated a tax preparation business named T&T Express Tax located in Pine Mountain, Ga., pleaded guilty today to crimes relating to the preparation of false tax returns, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia. Specifically, Detrick Tucker pleaded guilty to aiding and assisting in the preparation of false tax returns, and Natashia Tucker pleaded guilty to conspiring to defraud the United States in the assessment and collection of federal income taxes.
According to court documents, Natashia Tucker admitted that she conspired with Detrick Tucker to fraudulently inflate refunds on their clients’ tax returns in order to increase the popularity of T&T Express Tax and secure more business. Detrick Tucker contributed to the conspiracy by registering T&T Express Tax with the Internal Revenue Service (IRS) so that the false returns could be electronically filed and by performing managerial duties. He also applied for an Electronic Filing and Identification Number and a Preparer Tax Identification Number rather than Natashia Tucker because she is a convicted felon. Detrick Tucker then knowingly allowed Natashia Tucker to use these IRS registration numbers to file tax returns for clients as well as for her own 2010 and 2011 false tax returns. Natashia Tucker was the main tax return preparer at T&T Express Tax, and she prepared the majority of the false tax returns at the business primarily by abusing the Earned Income Tax Credit and by creating false business information for her clients. During its three years of operation, T&T Express Tax filed over 2,200 federal tax returns that claimed over $1,000,000 in false refunds.
Detrick Tucker faces a statutory maximum potential sentence of three years in prison for his conviction for aiding and assisting in the preparation of false tax returns. Natashia Tucker faces a statutory maximum potential sentence of five years in prison for her conspiracy conviction. They are both also subject to fines and mandatory restitution. U.S. District Judge Clay Land scheduled the Tuckers’ sentencing for Mar. 25, 2014.
The case was investigated by special agents of the IRS-Criminal Investigation and the Georgia Department of Revenue. Trial Attorneys Alexander Effendi and Charles Edgar Jr. of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Former Tennessee Mayor and Associate Sentenced <br /> for Running Illegal Gambling BusinessRead the Press Release
A former mayor of South Pittsburg, Tenn., and an associate were sentenced today in Chattanooga, Tenn., for managing an illegal gambling business, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Special Agent in Charge Kenneth L. Moore of the FBI’s Knoxville Division.
Former South Pittsburg Mayor James Michael Killian, 56, was sentenced by U.S. District Judge Curtis L. Collier in the Eastern District of Tennessee to serve six months in prison, followed by 12 months of home confinement. In addition to his prison term, Killian was sentenced to serve two years of supervised release and ordered to pay a fine of $30,000. His associate in the gambling operation, Robert Barry Cole, 53, of South Pittsburg, was sentenced to serve three months in prison, followed by six months of home confinement. He will serve two years of supervised release and was ordered to pay a $3,000 fine.
Killian was mayor of South Pittsburg from 2005 until 2012. During that time, he conducted a gambling operation that involved video gambling machines located at a convenience store he owned in South Pittsburg. Killian also managed an illegal lottery, in which bettors placed illegal bets on legal state lotteries. In addition, Killian ran an illegal sports betting ring in partnership with Cole. Cole received sports bets, collected wagers and paid successful bettors their winnings, and Killian and Cole split the proceeds of the operation.
This case was investigated by the FBI and prosecuted by Trial Attorney Mark Angehr of the Criminal Division’s Public Integrity Section.Former Desoto County, Fla., Sheriff’s Deputies Indicted for Civil Rights and Obstruction Violations Regarding the Assault of an InmateRead the Press Release
A federal grand jury in Fort Myers, Fla., indicted former Desoto County Sheriff’s Office deputies Steven Rizza and Jonathan Mause today for charges related to the violation of the civil rights of an inmate who was assaulted by Rizza at the Desoto County Jail and the ensuing obstruction of the investigation into that offense.
The six-count indictment charges Rizza with one count of violating the civil rights of another, and charges both Rizza and Mause with one count of falsifying records in a federal investigation, one count of obstruction of justice and one count of perjury to a grand jury. Additionally, the indictment charges Mause with one count of making a false statement to a federal investigator.
The indictment alleges that on May 25, 2013, Rizza assaulted an inmate at the Desoto County Jail. Further, according to the indictment, on May 26 and 27, Rizza and Mause falsified an incident about the assault by changing the incident report to conceal Rizza’s conduct. The indictment also alleges that Rizza subsequently made false statements about the May 25 incident to a Desoto County Sheriff’s Office investigator and to a federal grand jury. According to the indictment, Mause made false statements about the May 25 incident to a federal grand jury and a federal investigator.
If convicted, Rizza could face a statutory maximum sentence of 10 years on the civil rights violation count. Both Rizza and Mause could each face a statutory maximum of 20 years for the obstruction of justice and falsification of records counts and a maximum of five years for the perjury count. Further, Mause could face a maximum of five years for the count of making a false statement to a federal investigator.
The Federal Bureau of Investigation and the Florida Department of Law Enforcement are investigating this case with the assistance of the Desoto County Sheriff’s Office. Chief Assistant U.S. Attorney Jesus M. Casas of the Middle District of Florida and Trial Attorney Douglas Kern of the Civil Rights Division are prosecuting this case.
An indictment is merely an accusation, and all defendants are presumed innocent unless and until proven guilty.
Florida Residents Sentenced for Defrauding and Threatening Spanish-Speaking ConsumersRead the Press Release
Two individuals charged with running a telemarketing operation that defrauded Spanish-speaking consumers were sentenced today in Miami federal district court, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced. Daniel Carrasco, 54, was sentenced to serve 121 months in federal prison, and Federico Martin Gioja, 45, was sentenced to serve 108 months in federal prison, for their operation of telemarketing companies in Argentina whose representatives consistently lied to consumers about products they would receive and threatened consumers with consequences of failure to pay for their shipments. In addition to their sentences of imprisonment, Carrasco and Gioja were ordered to forfeit a variety of assets, including approximately 20 pieces of real property, an automobile, motorcycles, a boat, a jet ski and firearms.
“The Department of Justice is committed to protecting all consumers from fraud, regardless of the language they speak,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will be particularly vigilant towards schemes that target specific populations, and we will track down fraudulent actors whether they commit their offenses from the United States or abroad, and whether they commit them in English or another language.”
Carrasco’s and Gioja’s telemarketers promoted products such as vitamins, lotions and English-language training products. They also promised buyers would receive valuable gifts such as expensive watches and perfumes, gift cards and medical assistance and insurance. However, the companies frequently did not deliver products ordered by consumers. Since the companies did not have many of the products they promised to send to consumers, they sent other products instead. Then, after consumers refused delivery of the companies’ shipments, the Argentinian phone room telemarketers called and falsely threatened consumers with arrest, deportation or fines on their gas and electric bills.“Fraud is unacceptable,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “Fraud by threat and intimidation is particularly troublesome because it targets the perceived, but oftentimes real, vulnerabilities of those preyed upon. In this case, the defendants targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation or fines when the consumers refused delivery for products they had not ordered. Such tactics are intolerable. My office is committed and stands united with the department’s Civil Division, Consumer Protection Branch to stem such fraud.”
As part of their guilty pleas, Carrasco and Gioja admitted they routinely changed the names of the companies under which they did business to evade consumer complaints, regulators and law enforcement. A variety of state agencies contacted the businesses regarding their illicit practices. Those working with Carrasco and Gioja referred to these companies tainted by complaints as “burnt.” Rather than changing the “burnt” companies’ practices, Carrasco and Gioja incorporated new companies and started the same illegal practices again.
Also in pleading guilty, Carrasco and Gioja admitted their telemarketers falsely represented to consumers that they were affiliated with Spanish-language television networks. This fraud first came to light when the Spanish language network Univision informed the USPIS they believed a company was involved in a fraud scheme in which it misrepresented its affiliation with the network. Subsequently, USPIS investigated the case, submitted the affidavit in support of the criminal complaint and arrested the defendants.
“Sadly, these types of crimes create a distrust in people and leave victims feeling ashamed for falling for a scam,” said Inspector In Charge Ronald Verrochio for the U.S. Postal Inspection Service, Miami Division. “The U.S. Postal Inspection Service remains committed to pursuing crimes that are furthered via the U.S. mail and building trust with consumers. Postal Inspectors will investigate and bring the criminals to justice.”
Carrasco and Gioja were originally charged by criminal complaint and arrested on June 26, 2013. Both defendants were later indicted on July 25, 2013, and pleaded guilty on September 24, 2013. Carrasco and Gioja, and a third individual, Romino Tasso, also were named in a civil suit filed by the Justice Department. In the civil case, the Justice Department requested and obtained from the court a preliminary injunction barring further lies to consumers and freezing the assets of Carrasco, Gioja, Tasso and companies under their control.
Assistant Attorney General Delery commended the Postal Inspection Service for their investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the civil case. The criminal case was prosecuted by Assistant Director Richard Goldberg with the Department of Justice’s Civil Division, Consumer Protection Branch and Assistant U.S. Attorney Timothy Abraham of the Southern District of Florida.
CareFusion to Pay the Government $40.1 Million<br /> to Resolve Allegations That Include More Than $11 Million in Kickbacks to One DoctorRead the Press Release
CareFusion Corp. has agreed to pay the government $40.1 million to settle allegations that it violated the False Claims Act by paying kickbacks and promoting its products for uses that were not approved by the Food and Drug Administration, the Justice Department announced today. CareFusion, a California-based medical technology company, develops, manufactures and sells pharmaceutical products, including products sold under the trade name ChloraPrep.
“When companies pay kickbacks to doctors, especially doctors involved in setting standards for the health care industry, they undermine the integrity of the health care system,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Corrupting the standard-setting process through kickbacks can affect the health care treatment choices that doctors and hospitals may make for patients.”
The settlement resolves allegations that, under agreements entered into in 2008 by CareFusion’s predecessor, CareFusion paid $11.6 million in kickbacks to Dr. Charles Denham while Denham served as the co-chair of the Safe Practices Committee at the National Quality Forum, a non-profit organization that reviews, endorses and recommends standardized health care performance measures and practices. The government contends that the purpose of those payments was to induce Denham to recommend, promote and arrange for the purchase of ChloraPrep by health care providers. ChloraPrep has been approved by the Food and Drug Administration for the preparation of a patient’s skin prior to surgery or injection.
This settlement also resolves allegations that, during the period between September 2009 and August 2011, CareFusion knowingly promoted the sale of ChloraPrep for uses that were not approved by the Food and Drug Administration, some of which were not medically accepted indications, and made unsubstantiated representations about the appropriate uses of ChloraPrep.
“Health care fraud drives up the cost of health care and jeopardizes the strength of our health care system,” said U.S. Attorney for the District of Kansas Barry Grissom. “This case demonstrates that our fight against health care fraud is helping to protect all Americans, including the elderly, the disabled and the most vulnerable among us.”
The settlement resolves a lawsuit filed by Dr. Cynthia Kirk, a former vice president of regulatory affairs for the Infection Prevention Business Unit of CareFusion, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of false claims to file suit on behalf of the government and to share in any recovery. The whistleblower’s, or relator’s, share in this case is $3.26 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with CareFusion was the result of a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Kansas, the U.S. Department of Health and Human Services Office of Inspector General and the Food and Drug Administration Office of the Chief Counsel.
The lawsuit is captioned United States ex rel. Kirk v. CareFusion et al., No. 10-2492 (D. Kan.) The claims resolved by the settlement are allegations only; there has been no determination of liability.
Alcoa World Alumina Agrees to Plead Guilty to<br /> Foreign Bribery and Pay $223 Million in Fines and ForfeitureRead the Press Release
Alcoa World Alumina LLC, a majority-owned and controlled global alumina sales company of Alcoa Inc., has agreed to plead guilty later today and pay $223 million in criminal fines and forfeiture to resolve charges that it paid millions of dollars in bribes through an international middleman in London to officials of the Kingdom of Bahrain, in violation of the Foreign Corrupt Practices Act (FCPA).
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney David J. Hickton of the Western District of Pennsylvania, Chief Richard Weber of IRS—Criminal Investigation (IRS-CI), and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
“Alcoa World Alumina today admits to its involvement in a corrupt international underworld in which a middleman, secretly held offshore bank accounts, and shell companies were used to funnel bribes to government officials in order to secure business,” said Acting Assistant Attorney General Raman. “The law does not permit companies to avoid responsibility for foreign corruption by outsourcing bribery to their agents, and, as today’s prosecution demonstrates, neither will the Department of Justice.”
“Today’s case shows that multinational corporations cannot get away with using middlemen to structure sham business arrangements that funnel kickbacks to government officials,” said U.S. Attorney Hickton.
Alcoa World Alumina has agreed to plead guilty in the Western District of Pennsylvania to one count of violating the anti-bribery provisions of the FCPA in connection with a 2004 corrupt transaction, to pay a criminal fine of $209 million, and to administratively forfeit $14 million. As part of the plea agreement, Alcoa Inc. (Alcoa) has agreed to maintain and implement an enhanced global anti-corruption compliance program.
In a parallel action, Alcoa settled with the U.S. Securities and Exchange Commission (SEC) and will pay an additional $161 million in disgorgement, bringing the total amount of U.S. criminal and regulatory penalties to be paid by Alcoa and Alcoa World Alumina to $384 million.
“This case is the result of unraveling complex financial transactions used by Alcoa World Alumina LLC’s agent to facilitate kickbacks to foreign government officials,” said Chief Richard Weber of IRS-CI. “IRS-CI will not be deterred by the use of sophisticated international financial transactions as we continue our ongoing efforts to pursue corporations and executives who use hidden offshore assets and shell companies to circumvent the law.”
“Corrupt kickback payments to foreign government officials to obtain business diminish public confidence in global commerce,” said Assistant Director in Charge Parlave. “There is no place for bribery in any business model or corporate culture. Today’s plea demonstrates the FBI and our law enforcement partners are committed to curbing corruption and will pursue all those who try to advance their businesses through bribery.”
Today’s court filings allege that Alcoa of Australia, another Alcoa-controlled entity, originally secured a long-term alumina supply agreement with Aluminium Bahrain B.S.C. (Alba), an aluminium smelter controlled by the government of Bahrain. At the request of certain members of Bahrain’s Royal Family who controlled the tender process, Alcoa of Australia inserted a London-based middleman with close ties to certain Royal Family members as a sham sales agent and agreed to pay him a corrupt commission intended to conceal bribe payments, according to court papers. Over time, Alcoa of Australia expanded the relationship with the middleman, identified as Consultant A in today’s court filings, to begin invoicing increasingly larger volumes of alumina sales through his shell companies, which permitted Consultant A to make larger bribe payments to certain government officials, according to today’s filings.
As admitted in the charging documents, in 2004, Alcoa World Alumina corruptly secured a long-term alumina supply agreement with Alba by agreeing to purportedly sell over 1.5 million metric tons of alumina to Alba through offshore shell companies owned by Consultant A. The sham distributorship permitted Consultant A to mark up the price of alumina by approximately $188 million from 2005 to 2009, the duration of the corrupt supply agreement. Court filings allege that Consultant A used the mark-up to pay tens of millions in corrupt kickbacks to Bahraini government officials, including senior members of Bahrain’s Royal Family. To conceal the illicit payments, Consultant A and the government officials used various offshore bank accounts, including accounts held under aliases, at several major financial institutions around the world, including in Guernsey, Luxembourg, Liechtenstein and Switzerland.
In addition to the monetary penalty, Alcoa and Alcoa World Alumina agreed to cooperate with the department in its continuing investigation of individuals and institutions involved in these matters.
The plea agreement and related court filings acknowledge Alcoa’s current financial condition as a factor relevant to the size of the criminal fine, as well as Alcoa’s and Alcoa World Alumina’s extensive cooperation with the department, including conducting an extensive internal investigation, making proffers to the government, voluntarily making current and former employees available for interviews, and providing relevant documents to the department. Court filings also acknowledge subsequent anti-corruption remedial efforts undertaken by Alcoa.
The department acknowledges and expresses its appreciation for the cooperation and assistance of the Office of the Attorney General of Switzerland, the Guernsey Financial Intelligence Service and Guernsey Police, the Australian Federal Police, the U.K.’s Serious Fraud Office, and other law enforcement authorities in the department’s investigation of this matter. The department also acknowledges and expresses its appreciation for the significant assistance provided by the SEC’s Division of Enforcement.
The investigation is being conducted by Special Agents and analysts with the IRS-Criminal Investigation’s Washington Field Office and the FBI’s Washington Field Office. The case is being prosecuted by Deputy Chief Adam G. Safwat and Trial Attorneys Andrew Gentin, Allan J. Medina and Andrew H. Warren of the Criminal Division’s Fraud Section, with the assistance of the U.S. Attorney’s Office for the Western District of Pennsylvania. The Criminal Division’s Office of International Affairs also provided significant assistance during this investigation.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .Los Departamentos de Justicia y Educación de EE.UU. Publican un Paquete de Orientación sobre la Disciplina Escolar para Mejorar el Ambiente Escolar y Disminuir la Violencia EscolarRead the Press Release
WASHINGTON –El Departamento de Justicia de EE.UU. (DOJ), en colaboración con el Departamento de Educación de EE.UU. (ED), dio a conocer hoy un paquete de orientación sobre la disciplina escolar que ayudará a los estados, distritos y escuelas a desarrollar prácticas y estrategias para mejorar el ambiente escolar, y asegurar que sus políticas y prácticas cumplan con la ley federal. A pesar de que los incidentes de violencia escolar han disminuido en general, muchas escuelas todavía luchan por crear un ambiente seguro y positivo. Las escuelas pueden mejorar la seguridad asegurándose de que los ambientes sean acogedores y que las acciones disciplinarias sean justas, no discriminatorias, y eficaces.
Cada año, demasiados estudiantes faltan a clase debido a suspensiones y expulsiones, incluso por infracciones menores de las reglas de la escuela. Los estudiantes de color y con discapacidad se ven afectados de manera desproporcionada por la disciplina escolar. El paquete de orientación proporciona recursos para la creación de ambientes escolares seguros y positivos, que son indispensables para elevar el éxito académico de los estudiantes y cerrar las brechas de rendimiento.
"Cuando un estudiante comete una infracción rutinaria de la disciplina, éste debe terminar en la dirección escolar y no en el cuartel de la policía", dijo Eric Holder, fiscal general de EE.UU. "Esta guía de orientación promoverá prácticas disciplinarias justas y eficaces para que las escuelas sean seguras, inclusivas y brinden apoyo a todos los estudiantes. Para mantener a los jóvenes de nuestro país seguros y en el camino correcto, tenemos que garantizar la protección federal de los derechos civiles, ofrecer alternativas a la disciplina excluyente, y proporcionar información útil a los funcionarios escolares".
El paquete de recursos tiene cuatro componentes:
- La carta de orientación a los Estimados Colegas, preparada en colaboración con el Departamento de Educación, brinda a las escuelas orientación sobre los derechos civiles y la disciplina escolar. También indica cómo las escuelas pueden cumplir con las obligaciones legales de la ley federal en la aplicación de la disciplina estudiantil sin discriminar a los estudiantes por motivos de raza, color u origen nacional;
- El documento sobre los Principios Rectores, preparado por ED, se basa en investigaciones recientes y las mejores prácticas para describir tres principios claves y los pasos de acción relacionados que pueden ayudar a los estados y las localidades a mejorar el ambiente y la disciplina escolar;
- El Directorio de Recursos Federales de Ambiente Escolar y Disciplinarios, preparado por ED, indica los extensos recursos de asistencia técnica y otros recursos relacionados con el ambiente y la disciplina escolar que están a disposición de las escuelas y distritos; y
- El Compendio de Leyes y Reglamentos Sobre la Disciplina Escolar, preparado por ED, un catálogo en línea sobre las leyes y reglamentos relacionados con la disciplina escolar en cada uno de los 50 estados, el Distrito de Columbia y Puerto Rico, donde se pueden comparar las leyes de todos los estados y jurisdicciones.
"La enseñanza y el aprendizaje eficaz no pueden realizarse a menos que los estudiantes se sientan seguros en la escuela", dijo Arne Duncan, secretario de Educación de EE.UU. "Las normas disciplinarias positivas pueden ayudar a crear un ambiente de aprendizaje más seguro sin tener que depender en gran medida en las suspensiones y expulsiones. Las escuelas también deben comprender sus obligaciones con los derechos civiles y evitar prácticas disciplinarias injustas. Tenemos que mantener a los estudiantes en la clase donde puedan aprender. Estos recursos son un paso en la dirección correcta".
El paquete de orientación es un recurso que surge de la Iniciativa de Apoyo a la Disciplina Escolar (SSDI), un proyecto conjunto de los departamentos de Justicia y Educación. La SSDI fue puesta en práctica en el 2011, y advierte sobre el vínculo que se crea entre la escuela y la prisión cuando las prácticas disciplinarias conducen a los estudiantes a abandonar la escuela para entrar en el sistema penal. Como alternativa, la iniciativa promueve el apoyo de prácticas disciplinarias que fomentan entornos de aprendizaje seguros, incluyentes y positivos, para así mantener a los estudiantes en la escuela. El Departamento de Justicia aplica el Título IV de la Ley de Derechos Civiles de 1964, que prohíbe la discriminación por motivos de raza u origen nacional en las escuelas públicas, y en el Título VI de la Ley de Derechos Civiles de 1964, que prohíbe a las escuelas, las fuerzas del orden público, y los beneficiarios de asistencia financiera federal, discriminar por motivos de raza, color u origen nacional.
El paquete de orientación es también el resultado de la iniciativa Ya es Hora del presidente Obama para reducir la violencia cometida con armas de fuego. La propuesta pide al Departamento de Educación que reúna y difunda las mejores prácticas disciplinarias para ayudar a los distritos escolares a desarrollar y poner en práctica políticas disciplinarias equitativas. Para continuar los esfuerzos de DOJ/ED relacionados con la SSDI y también cumplir el compromiso de "Ya es Hora", el paquete de orientación ha sido desarrollado con el aporte adicional de los defensores de los derechos civiles, las principales organizaciones de educación y socios filantrópicos.
Para ver los documentos de recurso y orientación, visite www.ed.gov/school-discipline. Las agencias estatales de educación y las escuelas también pueden solicitar una copia del paquete llamando al servicio ED Pubs (Education Publications) al (877) 433-7827.
- La carta de orientación a los Estimados Colegas, preparada en colaboración con el Departamento de Educación, brinda a las escuelas orientación sobre los derechos civiles y la disciplina escolar. También indica cómo las escuelas pueden cumplir con las obligaciones legales de la ley federal en la aplicación de la disciplina estudiantil sin discriminar a los estudiantes por motivos de raza, color u origen nacional;
Justice Department Obtains $317,000 in Discrimination Settlement with Euless, Texas, Apartment ComplexRead the Press Release
The United States has settled a housing discrimination lawsuit in Euless, Texas, concerning discrimination against persons of Middle Eastern and South Asian descent, the Justice Department announced today. Under the agreement, defendants in United States v. Stonebridge at Bear Creek LLP et al will pay a total of $107,000 in civil penalties and $210,000 in a damages fund to compensate victims of the defendants’ discrimination identified during the term of the agreement.
The agreement was filed today in federal court in Dallas and takes the form of a joint proposed order whose terms may be enforced by the court. The department’s complaint alleged that, for several years, the owners, employees and management company of Stonebridge at Bear Creek Apartments violated the Fair Housing Act by denying housing opportunities to persons of Middle Eastern and South Asian descent. Among other unlawful actions, Stonebridge’s property manager ordered leasing agents to misrepresent apartment availability based on the accent and perceived race or national origin of potential tenants, and to segregate those approved tenants of Middle Eastern or South Asian descent into two buildings in order to isolate any smells allegedly associated with ethnic cuisine that the manager disliked.
“The Fair Housing Act ensures that people searching for a home are protected from discrimination, no matter what part of the world their family comes from” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to vigorously protect the rights of all individuals to obtain housing free from discrimination.”
Under the agreement, which must be approved by the federal court in Texas, the defendants must adopt a nondiscrimination policy and enact or undertake numerous other corrective measures, including training, record keeping and monitoring. In addition, the property manager who ordered the discrimination will no longer be employed by the owners of Stonebridge at Bear Creek Apartments or its management company.
Fighting illegal housing discrimination is a top priority of the department’s Civil Rights Division. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt/ . Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the department at [email protected] , or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.justice.gov/crt/housing/ or www.hud.gov/fairhousing .
Justice Department Closes Investigation of Prison in Pittsburgh, Pa., After Pennsylvania Department of Corrections Works Cooperatively to Improve Security PracticesRead the Press Release
The Justice Department announced today that it has closed its investigation of State Correctional Institution – Pittsburgh after the Pennsylvania Department of Corrections (PDOC) significantly improved security policies and practices at the prison and throughout the Pennsylvania prison system. The reforms are intended to protect prisoners, especially gay, transgender and gender nonconforming prisoners, from harm and discrimination. The PDOC has also assured the United States that by no later than Dec. 1, 2014, it will have the prison audited and deemed fully compliant with the National Standards to Prevent, Detect, and Respond to Prison Rape promulgated under the Prison Rape Elimination Act of 2003 (PREA).
The department opened this investigation in December 2011, after local authorities initiated criminal prosecutions against seven of the prison’s officers for assaulting and sexually abusing vulnerable prisoners. In May 2013, the department notified Pennsylvania officials that while significant measures had already been undertaken to address the misconduct that had occurred, more needed to be done. Since then, Pennsylvania has worked cooperatively to address the department’s concerns and has made substantial progress toward improving the safety of its prisoners. These improvements include statewide reforms to oversight and accountability measures, abuse and misconduct investigations, prisoner screening procedures and the grievance system. The Pittsburgh prison has also improved the way it monitors its inmates and secures its physical plant.
“We commend the Pennsylvania Department of Corrections for its commitment to improving security policies and practices in Pittsburgh and its other facilities,” said Acting Assistant Attorney General Jocelyn Samuels for the department’s Civil Rights Division. “These improvements, especially those concerning PREA, provide a clear path forward to ensuring the safety of prisoners in their care.”
“I am very pleased with the outcome of this investigation,” added U.S. Attorney David J. Hickton for the Western District of Pennsylvania. “Correctional facilities have a constitutional obligation to adequately protect prisoners from harm. The positive result of this investigation demonstrates our commitment to ensuring that the constitutional rights of all citizens are protected.”
The department initiated this investigation under the Civil Rights of Institutionalized Persons Act, which prohibits a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. This investigation was conducted by Special Litigation Counsel Avner Shapiro, Trial Attorneys Kyle Smiddie and Aaron Zisser, Analyst Gary Graca of the Special Litigation Section of the Civil Rights Division and Amie Murphy with the U.S. Attorney’s Office for the Western District of Pennsylvania. Secretary John Wetzel and his staff at the PDOC have fully cooperated with this investigation. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Florida Couple Sentenced for Roles<br /> in Procurement Contract Bribery SchemeRead the Press Release
A Florida man was sentenced to serve 15 months in prison, and his wife was sentenced to 24 months of probation, for their roles in a bribery and fraud scheme involving federal procurement contracts, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David B. Barlow of the District of Utah.
On Feb. 26, 2013, Sylvester Zugrav, 70, of Sarasota, Fla., pleaded guilty to conspiracy to commit bribery and procurement fraud, and his wife, Maria Zugrav, 67, also of Sarasota, pleaded guilty to misprision of a felony related to her efforts to conceal the conspiracy.
The Zugravs were charged in an October 2011 indictment along with Jose Mendez, 51, of Farr West, Utah. Mendez, a procurement program manager for the U.S. Air Force Foreign Materials Acquisition Support Office (FMASO) at Hill Air Force Base, in Ogden, Utah, was charged in the indictment with conspiracy, bribery and procurement fraud, and has since pleaded guilty to all charges and agreed to forfeit more than $180,000 he received as part of the bribery scheme. Sentencing for Mendez is scheduled for Jan. 29, 2014.
According to court documents, the Zugravs owned Atlas International Trading Company, a business that contracted to provide foreign military materials to the U.S. government through FMASO.
In his plea agreement, Sylvester Zugrav admitted that, from 2008 through August 2011, he gave Mendez more than $180,000 in bribe payments and offered Mendez more than $1 million in additional bribe payments contingent upon Atlas’s receipt of future contracts with FMASO. In exchange for Sylvester Zugrav’s bribe payments and offers, Mendez ensured that Atlas and Sylvester Zugrav received favorable treatment in connection with procurement contracts by, among other things, assisting Atlas in obtaining and maintaining procurement contracts; assisting Atlas in receiving payments on such contracts; and providing Atlas with contract bid or proposal information or source selection information before the award of procurement contracts. In her plea agreement, Maria Zugrav admitted that she was aware of Sylvester Zugrav’s bribe payments to Mendez and assisted with concealing the crime.
According to court records, Sylvester Zugrav provided bribe payments to Mendez in three ways: cash payments via Federal Express to Mendez’s residential address; in-person payments of cash and other things of value; and electronic wire transfers to a bank account in Mexico opened by and in the name of Mendez’s cousin. Between November 2009 and August 2011, Sylvester Zugrav sent nine FedEx packages to Mendez’s home address. Each package contained $5,000 in cash, except the last package, which contained $3,000 and was seized by law enforcement. Maria Zugrav assisted her husband and Mendez’s bribe scheme by limiting cash withdrawals from Atlas’s bank account to not more than $5,000 to avoid scrutiny by banking officials and law enforcement.
According to the plea documents, on multiple occasions when Sylvester Zugrav and Mendez traveled to the same location, Sylvester Zugrav would give Mendez cash payments and other things of value. From 2008 through August 2011, Sylvester Zugrav gave Mendez seven in-person cash payments ranging from $500 to $10,000 and purchased for him[?] a laptop computer and software package worth over $2,900.
During the course of the corrupt scheme, Mendez opened a foreign bank account so that Sylvester Zugrav could pay Mendez larger bribe payments. Mendez asked his cousin in Mexico to open an account there. After the account was opened by Mendez’s cousin, Maria Zugrav made wire transfers to the bank account located in the name of Mendez’s cousin to avoid detection of the larger bribe payments by law enforcement. From 2008 through August 2011, Maria Zugrav sent to the Mexico account 10 wire transfers ranging from $350 to $26,700.
Court records also describe additional steps taken to conceal the bribery scheme, including creating and using covert e-mail accounts, using encrypted documents, adopting false names and using code words. For instance, to avoid detection of their e-mail communications, Sylvester Zugrav and Mendez established e-mail accounts to be used only to communicate requests and offers for bribe payments. Sylvester Zugrav and Mendez also created password-protected documents for e-mail communications and used code words and false names. Within the encrypted documents, Mendez adopted the moniker “Chuco” and Sylvester Zugrav used the codename “Jugo.” They referred to cash as “literature.”
The case was investigated by the FBI and the Air Force Office of Special Investigations. The case is being prosecuted by Trial Attorneys Marquest J. Meeks and Edward P. Sullivan of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorney Carlos A. Esqueda of the District of Utah, and Trial Attorney Deborah Curtis of the National Security Division’s Counterespionage Section.Departments of Justice and Education Issue School Discipline Guidance to Promote Safe, Inclusive SchoolsRead the Press Release
The Department of Justice (DOJ), in collaboration with the Department of Education (ED), today released a school discipline guidance package that will assist states, districts and schools in developing practices and strategies to enhance school climate, and ensure those policies and practices comply with federal law. Even though incidents of school violence have decreased overall, many schools are still struggling to create positive, safe environments. Schools can improve safety by making sure that climates are welcoming, and that responses to misbehavior are fair, non-discriminatory, and effective.
Each year, significant numbers of students miss class due to suspensions and expulsions—even for minor infractions of school rules—and students of color and with disabilities are disproportionately impacted. The guidance package provides resources for creating safe and positive school climates, which are essential for boosting student academic success and closing achievement gaps.
"A routine school disciplinary infraction should land a student in the principal's office, not in a police precinct," said Attorney General Eric Holder. "This guidance will promote fair and effective disciplinary practices that will make schools safe, supportive, and inclusive for all students. By ensuring federal civil rights protections, offering alternatives to exclusionary discipline, and providing useful information to school resource officers, we can keep America's young people safe and on the right path."
The resource package consists of four components:
· The Dear Colleague guidance letter on civil rights and discipline, prepared by DOJ and ED, describes how schools can meet their legal obligations under federal law to administer student discipline without discriminating against students on the basis of race, color or national origin;
· The Guiding Principles document, prepared by ED, draws from emerging research and best practices to describe three key principles and related action steps that can help guide state and local efforts to improve school climate and school discipline;
· The Directory of Federal School Climate and Discipline Resources, prepared by ED, indexes the extensive federal technical assistance and other resources related to school discipline and climate available to schools and districts; and
· The Compendium of School Discipline Laws and Regulations,prepared by ED, is an online catalogue of the laws and regulations related to school discipline in each of the 50 states, the District of Columbia and Puerto Rico, and compares laws across states and jurisdictions.
“Effective teaching and learning cannot take place unless students feel safe at school,” said U.S. Secretary of Education Arne Duncan. “Positive discipline policies can help create safer learning environments without relying heavily on suspensions and expulsions. Schools also must understand their civil rights obligations and avoid unfair disciplinary practices. We need to keep students in class where they can learn. These resources are a step in the right direction.”
The guidance package is a resource resulting from a collaborative project—the Supportive School Discipline Initiative (SSDI)—between DOJ and ED. The SSDI, launched in 2011, addresses the school-to-prison pipeline and the disciplinary policies and practices that can push students out of school and into the justice system. The initiative aims to support instead school discipline practices that foster safe, inclusive and positive learning environments while keeping students in school. The Department of Justice enforces Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race or national origin in public schools, and Title VI of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color or national origin by schools, law enforcement agencies and other recipients of federal financial assistance.
The guidance package also results from President Obama’s Now is the Time proposal to reduce gun violence. It called on ED to collect and disseminate best practices on school discipline policies and to help school districts develop and equitably implement their policies. To both continue ED and DOJ efforts in connection with SSDI and fulfill the administration’s commitment to “Now is the Time,” the guidance package was developed with additional input from civil rights advocates, major education organizations and philanthropic partners.
To view the resource documents, visit www.ed.gov/school-discipline . State Education Agencies, Local Education Agencies and schools may also request a copy of the package by calling (877) 433-7827.
Colorado Big Game Outfitter and Assistant Guide Charged with Conspiracy for Illegal Capture and Maiming of Mountain Lions and Bobcats in Colorado and UtahRead the Press Release
Christopher W. Loncarich, 55, of Mack, Colo., and Nicholaus J. Rodgers, 30, of Medford, Ore., were charged yesterday in the District of Colorado with conspiracy to violate the Lacey Act, interstate felony transportation and sale of unlawfully taken wildlife, and felony creation of false records concerning wildlife that was sold in interstate commerce. The 17-count indictment was based on the pair’s practice between 2007 and 2010 of illegally capturing and maiming mountain lions and bobcats as part of a scheme to make hunting the cats easier for their clients.
The indictment alleges Christopher Loncarich is a big game outfitter and hunting guide who operates mainly in western Colorado on the border with Utah. Mr. Loncarich outfits and guides hunts for mountain lions and bobcats in the Bookcliffs Mountains, which span the Colorado-Utah border. Mountain lion and bobcat hunting are labor-intensive pursuits. The hunting seasons for the cats stretch from November to March when snow is likely to be on the ground. Guides commonly release highly-trained dogs on the track of the cats after the guides discover a track in the snow. The process is for the hunting dogs to follow the cat’s scent in the snow, then tree, corner or bay the pursued cat. At that point a hunter arrives and kills the treed cat.
The allegations include that Mr. Loncarich and his assistant guides devised a scheme whereby they would trap the cats in cages prior to hunts and release the cats when the client was nearby. Mr. Loncarich, Mr. Rodgers and other guides would communicate by radio to ensure that they took their clients to the location where the cats had been released. In order to keep the cats in the areas of potential hunts Mr. Loncarich, Mr. Rodgers and other guides would sometimes shoot the cats in the paws or legs or attach leghold traps to them. Many of the clients Mr. Loncarich and Mr. Rodgers guided did not have proper tags or licenses to take mountain lions or bobcats in Utah. Despite knowing that the clients were hunting in Utah without proper licenses or tags, the pair continued to guide the hunts. Ultimately, Mr. Loncarich, Mr. Rodgers and other guides brought the animals taken in Utah back to Colorado. Mr. Loncarich often took the client to “check in” the illegally taken mountain lions with the Colorado Division of Wildlife (now “Colorado Parks and Wildlife”) where Mr. Loncarich would provide false records to obtain seals for the hides. Many of the cats were then transported back to the clients’ home states. To date, four assistant guides have pleaded guilty to offenses arising from the conspiracy.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement, Colorado Parks and Wildlife, and Utah Division of Wildlife Resources, and is being prosecuted by the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.19th Micronesian Chief Executives Summit Invites U.S. Attorney to Speak on “Preventing Human Trafficking in the Pacific Region”Read the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), and Sarah Thomas-Nededog, Vice-President, West Care Pacific Islands, were invited to speak at the Micronesian Chief Executives Summit (MCES) held on December 4-6, 2013, in Saipan, NMI. The MCES is composed of the Chief Executives of the Territory of Guam, the Commonwealth of the NMI, the Republic of Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia. The Governors of each of the Federated States of Micronesia -- Chuuk, Yap, Pohnpei, and Kosrae, are also members. The primary purpose of the MCES is to coordinate and implement regional strategies to assist its member jurisdictions.
U.S. Attorney Limtiaco and Ms. Thomas-Nededog spoke on the topic of “Preventing Human Trafficking in the Pacific Region,” and shared information on the Pacific Regional Response to Combat Human Trafficking initiative, which is a collaborative effort among the U.S. Attorney’s Office for the Districts of Guam and the NMI, the National District Attorneys Association, the Department of State, the Department of the Interior, Guam Human Trafficking Task Force, NMI Human Trafficking Intervention Coalition, and other community partners. U.S. Attorney Limtiaco and Ms. Thomas-Nededog also discussed the intersection and relationship between human trafficking, sexual assault, child abuse and domestic and family violence, and prevention and enforcement efforts in the Pacific region.The Pacific Regional Response to Combat Human Trafficking initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders. The response calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. Providing fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics, to law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders, in our Pacific region island communities, is critical to effective prevention and enforcement efforts in the region.
Photos of the summit are attached.
U.S. Attorney Alicia Limtiaco
Sarah Thomas-Nededog, Vice President,
West Care Pacific IslandsUnited States Government Settles False Claims Act Allegations Against Florida Vein Clinic and Its OwnerRead the Press Release
A Florida-based physician, Dr. Ravi Sharma, has agreed to pay $400,000 to resolve allegations that he and his clinics violated the False Claims Act by knowingly billing Medicare for vein injections and physician office visits performed by unqualified personnel, the Justice Department announced today.
“Vein injections and other invasive procedures should be performed by appropriately qualified personnel,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will not tolerate those who put patients’ health at risk for their personal gain and convenience.”
The government alleged that, between 2009 and 2010, Sharma owned and operated a clinic in the Tampa area called Premier Vein Centers. Beginning in 2009, Sharma allegedly sent text messages to his office manager instructing her to perform varicose vein injections on patients when he was not in the office. The government further alleged that, when Sharma was in the office, he performed unnecessary vein injections and unnecessary ultrasound imaging procedures associated with those vein injections.
Sharma also owned and operated, between 2009 and 2010, a weight loss clinic in the Tampa area called Life’s New Image. Allegedly, unqualified personnel met with patients of the clinic, but Sharma billed those visits as physician office visits using his own Medicare provider number. Sharma closed Premier Vein Centers and Life’s New Image in 2010.
“We are pleased to announce this very favorable resolution of our claims against this provider,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Again, it demonstrates our commitment to civil health care fraud enforcement in our district.”
The allegations covered by the settlement were originally raised in a lawsuit filed by Patti Lovell, the former office manager for Sharma, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for the submission of false claims and to receive a share of any recovery. Lovell will receive $72,000.
As part of the settlement, Sharma entered into a three-year Integrity Agreement with the Office of Inspector General of the Department of Health and Human Services. The agreement requires Sharma to attend training courses provided by the Centers for Medicare and Medicaid Services and provides for an independent external review of his federal health care program coding and billing procedures.This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation of this matter reflects a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida and the Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Lovell v. Ravi Sharma, M.D. and Premier Vein Centers, 12-CV-133 (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Tennessee Men Plead Guilty to Illegally Trafficking Narwhal TusksRead the Press Release
Jay G. Conrad, of Lakeland, Tenn., pleaded guilty today in the District of Maine to conspiring to illegally import and traffic narwhal tusks, conspiring to launder money, and illegally trafficking narwhal tusks, announced Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division . A plea agreement was also unsealed today in which Eddie T. Dunn, of Eads, Tenn., pleaded guilty in the District of Alaska to conspiring to illegally traffic, and trafficking, narwhal tusks.
According to the plea agreements, beginning in approximately 2003, Dunn and Conrad partnered to buy more than 100 narwhal tusks from a Canadian resident who each knew had illegally imported the tusks from Canada into Maine. After receiving the tusks in Tennessee, Dunn and Conrad marketed and sold the tusks using a combination of internet sales via the “Ebay” auction website and direct sales to known buyers and collectors of ivory. Buyers were located throughout the United States, including in Alaska and Washington. Throughout the conspiracy, Dunn and Conrad made payments to the Canadian supplier for the narwhal tusks by sending the payment to a mailing address in Bangor, Maine, or directly to the supplier in Canada. The payments allowed the Canadian supplier to purchase and re-supply Dunn and Conrad with more narwhal tusks that they could then re-sell. Dunn sold approximately $1.1 million worth of narwhal tusks and Conrad sold between $400,000 and $1 million worth of narwhal tusks as members of the conspiracy.
“In this conspiracy, Dunn and Conrad flouted U.S. law and international agreements that protect marine mammals like the narwhal from commercial exploitation,” said Acting Assistant Attorney General Dreher. “If left unchecked, this illegal trade has the potential to irreparably harm the species. The Justice Department will continue to investigate and prosecute wildlife traffickers in order to protect these species for future generations to enjoy.”
“The cooperation between Service and NOAA investigators and between the United States and Canada that led to these prosecutions reflects the type of partnerships needed to protect narwhals and other species worldwide from wildlife trafficking,” said William C. Woody, Assistant Director for Law Enforcement for the U.S. Fish and Wildlife Service.
“NOAA OLE takes the unlawful importation of protected marine mammals very seriously,” said NOAA-Office of Law Enforcement Special Agent in Charge Logan Gregory. “NOAA OLE will continue to investigate those who unlawfully import marine mammal products and profit from marine protected species such as the narwhal.”
“This investigation uncovered and dismantled a wildlife trafficking network that spanned from New Brunswick to Tennessee and reached as far as Alaska,” said Karen Loeffler, U.S. Attorney for the District of Alaska. “The results reached demonstrate the close cooperation between the United States and Canada and their law enforcement officers whose duty it is to investigate, stop and deterthose who illegally target diminishing wildlife resources and do so for commercial gain.”
A narwhal is a medium-sized whale with an extremely long tusk that projects from its upper left jaw. Narwhals are marine mammals protected by the Marine Mammal Protection Act and are listed on Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). It is illegal to import parts of marine mammals into the United States without the requisite permits/certifications, and without declaring the merchandise at the time of importation to U.S. Customs and the U.S. Fish and Wildlife Service. Narwhal tusks are commonly collected for display purposes and can fetch large sums of money.
Dunn is scheduled to be sentenced by U.S. District Judge Ralph R. Beistline in the District of Alaska on March 20, 2014. The maximum penalty Dunn faces for conspiring to illegally traffic, and trafficking, narwhal tusks is five years of incarceration and a fine of $250,000. The maximum penalty Conrad faces for conspiring to illegally import and illegally traffic narwhal tusks, conspiring to commit money laundering crimes and illegally trafficking narwhal tusks is twenty years of incarceration and a fine of $250,000. The trial of Co-defendant Andrew J. Zarauskas is set to begin in Bangor, Maine, on February 4, 2014. Co-defendant Gregory R. Logan is pending extradition from Canada to the District of Maine.
These cases are part of Operation Nanook, a multi-agency effort to detect, deter and prosecute those engaged in the unlawful trafficking of narwhal tusks. The cases were investigated by agents from National Oceanic and Atmospheric Administration - Office of Law Enforcement and the U.S. Fish and Wildlife Service - Office of Law Enforcement, with extensive support and collaboration from Environment Canada, Wildlife Enforcement. The cases are being prosecuted by Trial Attorney Todd S. Mikolop of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Steven E. Skrocki of the District of Alaska.
# # #Medical Device Manufacturer Charged With<br /> Major Securities Fraud SchemeRead the Press Release
ArthroCare Corporation, a medical device manufacturer based in Austin, Texas, and that trades on the NASDAQ stock exchange, has agreed to pay a $30 million monetary penalty to resolve charges that senior executives at the company engaged in a securities fraud scheme that resulted in more than $400 million in shareholder losses, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Robert Pitman of the Western District of Texas.
John Raffle and David Applegate, both former senior vice presidents of ArthroCare, previously pleaded guilty to conspiracy to commit securities and wire fraud in connection with the fraud scheme. ArthroCare’s former chief executive officer, Michael Baker, and chief financial officer, Michael Gluk, are scheduled to stand trial on related charges on May 5, 2014. Defendants are presumed innocent unless and until proven guilty at trial.
As part of the agreed-upon resolution, the department today filed a criminal information in the Western District of Texas charging ArthroCare with one count of conspiracy to commit securities fraud and wire fraud. In addition to the monetary penalty, ArthroCare also agreed to cooperate with the department in its continuing investigation and prosecution of individuals responsible for the scheme and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect violations of the federal securities laws and federal laws relating to the company’s relationships and transactions with health care providers. ArthroCare had previously entered into a multi-million dollar settlement agreement with shareholder victims.
In the deferred prosecution agreement, ArthroCare admitted that senior executives of the company inflated ArthroCare’s revenue by tens of millions of dollars; concealed the nature and financial significance of ArthroCare’s relationship with its largest distributor, DiscoCare Inc., and other distributors; and used a series of sham transactions to manipulate ArthroCare’s revenue and earnings as reported to investors. ArthroCare admitted that its executives determined the type and amount of product to be shipped to distributors, notably DiscoCare, based on ArthroCare’s need to meet sales forecasts, rather than the distributors’ actual orders.
ArthroCare further admitted that these executives and others then caused ArthroCare to “park” millions of dollars worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter so the company could report these shipments as sales in its quarterly and annual filings and so the company would appear to have met or exceeded internal and external earnings forecasts.
According to the Information, between December 2005 and December 2008, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock. On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter 2006 through the first quarter 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share. The drop in ArthroCare’s share price caused an immediate loss in shareholder value of more than $400 million.
This case was investigated by the FBI’s Austin Field Office. The case is being prosecuted by Deputy Chief Benjamin D. Singer and Trial Attorneys Henry P. Van Dyck and William Chang of the Criminal Division’s Fraud Section. Significant assistance was provided by the SEC’s Fort Worth, Texas, Office.Medical Clinic Owner and Other Patient Recruiters Plead Guilty in Miami for Roles in $8 Million Health Care Fraud SchemeRead the Press Release
Several patient recruiters, including a medical clinic owner, pleaded guilty today in connection with a health care fraud scheme involving Flores Home Health Care Inc., a defunct home health care company.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement.
At a hearing held before U.S. District Judge Ursula Ungaro of the Southern District of Florida, Lerida Labrada, 59, of Miami, pleaded guilty to conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison, and Mayra Flores, 49, and German Martinez, 36, both of Miami, pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks, which carries a maximum penalty of five years in prison. Sentencing has been scheduled for March 14, 2014.
According to court documents, the defendants worked as patient recruiters for the owners and operators of Flores Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Labrada also owned and operated a Miami medical clinic that provided fraudulent prescriptions to patient recruiters and to the owners and operators of Flores Home Health.
Flores Home Health was operated for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
The defendants would recruit patients for Flores Home Health and would solicit and receive kickbacks and bribes from the owners and operators of Flores Home Health in return for allowing the agency to bill the Medicare program on behalf of the recruited Medicare patients. These Medicare beneficiaries were billed for home health care and therapy services that were not medically necessary and/or not provided.
From approximately October 2009 through approximately June 2012, Flores Home Health was paid approximately $8 million by Medicare for fraudulent claims for home health services.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division's Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.govMedical Clinic Owner Pleads Guilty in Miami for Role in Multiple Health Care Fraud Schemes Totaling over $20 MillionRead the Press Release
The owner and operator of a Miami medical clinic pleaded guilty today in connection with multiple health care fraud schemes involving the defunct clinic Merfi Corp.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement.
Isabel Medina, 49, of Miami, pleaded guilty before U.S. District Judge Ursula Ungaro of the Southern District of Florida to conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison. Sentencing has been scheduled for March 14, 2014.
According to court documents, Medina was an owner and operator of Merfi, a Miami medical clinic which employed physicians, physician assistants and other medical professionals who were authorized by law to dispense prescriptions for home health care services. Through Merfi, Medina and her co-conspirators provided fraudulent home health and therapy prescriptions and other medical documentation to the owners and operators of Flores Home Health Care Inc. and other home health care agencies, as well as to patient recruiters, in return for kickbacks and bribes.
Flores Home Health and these other home health care agencies purported to provide home health and therapy services to Medicare beneficiaries, but were in fact operated for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or not provided.
Medina has acknowledged that her involvement in fraudulent schemes at multiple home health care companies, including Flores Home Health, resulted in losses to the Medicare Program exceeding $20 million.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division's Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.govDaniel Cruz Stone and Daniel Manglona Cruz Sentenced in U.S. District CourtRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendant Daniel Cruz Stone, age 34, and Daniel Manglona Cruz, age 57, were sentenced today in the District Court of Guam. Cruz is Stone’s uncle. Each pled to an Information charging Conspiracy to Distribute more than 50 grams of methamphetamine.
Credit for the investigation is given to the Drug Enforcement Administration (DEA), U.S. Postal Service Inspectors, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Task Force Agents from the Superior Court of Guam’s Probation Office assigned to the DEA, and the Guam Police Department. The case was handled by Assistant U.S. Attorney Clyde Lemons.
Cruz was sentenced to 87 months in prison and five years supervised release. Stone received 70 months in prison, five years supervised release and a fine in the amount of $12,500. He was also ordered to participate in a substance abuse program. Both defendants are awaiting a designation from the Bureau of Prisons.
On August 9, 2011, a postal inspector seized a package addressed to Cruz containing 212 grams of ice. Cruz was detained and admitted the package was his. He then agreed to call his co-defendant/nephew (STONE) who sold ice for him. His nephew showed up at the Agana Shopping Mall and was arrested.RBS Securities Japan Ltd Sentenced for Manipulation of Yen LiborRead the Press Release
RBS Securities Japan Limited, a wholly owned subsidiary of The Royal Bank of Scotland plc (RBS) that engages in investment banking operations with its principal place of business in Tokyo, Japan, was sentenced today for its role in manipulating the Japanese Yen London Interbank Offered Rate (LIBOR), a leading benchmark used in financial products and transactions around the world.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
RBS Securities Japan was sentenced by U.S. District Judge Michael P. Shea in the District of Connecticut. RBS Securities Japan pleaded guilty on April 12, 2013, to one count of wire fraud for its role in manipulating Yen LIBOR benchmark interest rates. RBS Securities Japan signed a plea agreement with the government in which it admitted its criminal conduct and agreed to pay a $50 million fine, which the court accepted in imposing sentence. In addition, RBS plc, the Edinburgh, Scotland-based parent company of RBS Securities Japan, entered into a deferred prosecution agreement (DPA) with the government requiring RBS plc to pay an additional $100 million penalty, to admit and accept responsibility for its misconduct as set forth in an extensive statement of facts and to continue cooperating with the Justice Department in its ongoing investigation. The DPA reflects RBS plc’s cooperation in disclosing LIBOR misconduct within the financial institution and recognizes the significant remedial measures undertaken by new management to enhance internal controls.
Together with approximately $462 million in regulatory penalties and disgorgement – $325 million as a result of a Commodity Futures Trading Commission (CFTC) action and approximately $137 million as a result of a U.K. Financial Conduct Authority (FCA) action – the Justice Department’s criminal penalties bring the total amount of the resolution with RBS and RBS Securities Japan to approximately $612 million.
“Today’s sentencing of RBS is an important reminder of the significant consequences facing banks that deliberately manipulate financial benchmark rates, and it represents one of the numerous enforcement actions taken by the Justice Department in our ongoing LIBOR investigation” said Acting Assistant Attorney General Raman. “As a result of the department’s investigation, we have charged five individuals and secured admissions of criminal wrongdoing by four major financial institutions. Our enforcement actions have had a lasting impact on the global banking system, and we intend to continue to vigorously investigate and prosecute the manipulation of this cornerstone benchmark rate.”
“By colluding to manipulate the Yen LIBOR benchmark interest rate, RBS Securities Japan reaped higher profits for itself at the expense of unknowing counterparties, and in the process undermined the integrity of a major benchmark rate used in financial transactions throughout the world,” said Deputy Assistant Attorney General Snyder. “Today’s sentence, in conjunction with the department’s agreement with parent company RBS, demonstrates the Antitrust Division’s commitment to prosecuting these types of far-reaching and sophisticated conspiracies.”
“The manipulation of LIBOR impacts financial products the world over, and erodes the integrity of the financial markets,” said Assistant Director in Charge Parlave. “Without a level playing field in our financial marketplace, banks and investors do not have a threshold to which they can measure their hard work. I commend the Special Agents, forensic accountants and analysts, as well as the prosecutors, for the significant time and resources they committed to investigating this case.”
According to court documents, LIBOR is an average interest rate, calculated based upon submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR serves as the primary benchmark for short-term interest rates globally, and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.
LIBOR is published by the British Bankers’ Association (BBA), a trade association based in London. At the time relevant to the conduct in the criminal information, LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The LIBOR for a given currency at a specific maturity is the result of a calculation based upon submissions from a panel of banks for that currency (the Contributor Panel) selected by the BBA.
According to the plea agreement, at various times from at least 2006 through 2010, certain RBS Securities Japan Yen derivatives traders engaged in efforts to move LIBOR in a direction favorable to their trading positions, defrauding RBS counterparties who were unaware of the manipulation affecting financial products referencing Yen LIBOR. The scheme included efforts to manipulate more than one hundred Yen LIBOR submissions in a manner favorable to RBS Securities Japan’s trading positions. Certain RBS Securities Japan Yen derivatives traders, including a manager, engaged in this conduct in order to benefit their trading positions and thereby increase their profits and decrease their losses.
The prosecution of RBS Securities Japan is being handled by Deputy Chief Patrick Stokes and Trial Attorney Gary Winters of the Criminal Division’s Fraud Section, and New York Office Assistant Chief Elizabeth Prewitt and Trial Attorneys Eric Schleef and Richard Powers of the Antitrust Division. Deputy Chiefs Daniel Braun and William Stellmach and Trial Attorney Alex Berlin of the Criminal Division’s Fraud Section, Trial Attorneys Daniel Tracer and Kristina Srica of the Antitrust Division, Jeremy Verlinda of the Antitrust Division’s Economic Analysis Group, Assistant U.S. Attorneys Eric Glover and Liam Brennan of the U.S. Attorney’s Office for the District of Connecticut, and the Criminal Division’s Office of International Affairs have also provided valuable assistance in this matter. The investigation is being conducted by special agents, forensic accountants and intelligence analysts of the FBI’s Washington Field Office.
The investigation leading to these cases has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the CFTC’s Division of Enforcement referred this matter to the department and, along with the FCA, has played a major role in the investigation. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance. In particular, the Securities and Exchange Commission has played a significant role in the LIBOR investigation, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov.Foreign Bribery Charges Unsealed Against<br /> Former Chief Executive Officers of Oil Services CompanyRead the Press Release
Two former chief executive officers of PetroTiger Ltd. – a British Virgin Islands oil and gas company with operations in Colombia and offices in New Jersey – have been charged for their alleged participation in a scheme to pay bribes to foreign government officials in violation of the Foreign Corrupt Practices Act (FCPA), to defraud PetroTiger, and to launder proceeds of those crimes. In addition, PetroTiger’s former general counsel pleaded guilty to bribery and fraud charges in connection with the same scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Aaron T. Ford of the FBI’s Newark Division made the announcement after the charges and guilty plea were unsealed today.
“We have said – repeatedly and emphatically – that foreign corruption, whether committed by companies or by the individuals entrusted to run those companies, will not be tolerated. And, our track record in vigorously enforcing the FCPA has shown that message to be undeniably true,” said Acting Assistant Attorney General Raman. “The charges unsealed today against two former CEOs of PetroTiger and the guilty plea announced today of the former General Counsel reaffirm our clear message that we will prosecute corruption and fraud wherever we find it. Bribery distorts what should be a level playing field and deprives corporations and governments of funds that should instead be used to strengthen those institutions. Today’s announcement should be a reminder to CEOs and other executives who seek to corrupt the system at the expense of honest businesses: we are not going away.”
“Bribery of public officials, whether at home or abroad, corrupts business opportunity and undermines trust in government,” said U.S. Attorney Fishman. “The under-the-table deals alleged in today’s charges are not an acceptable way of doing business.”
“The FBI is committed to pursuing those who disrupt the level playing field to which companies in the U.S. and around the world are entitled,” said FBI Special Agent in Charge Ford. “We will continue to investigate these matters by working with law enforcement agencies, both foreign and domestic, to ensure that both corporations and executives who bribe foreign officials for lucrative contracts are punished.”
According to the charges, former co-CEOs of PetroTiger Joseph Sigelman, 42, formerly of Miami and the Philippines, and Knut Hammarskjold, 42, of Greenville, S.C.; former general counsel Gregory Weisman, 42, of Moorestown, N.J., and others allegedly paid bribes to an official in Colombia in exchange for the official’s assistance in securing approval for an oil services contract worth roughly $39 million.
Hammarskjold was arrested Nov. 20, 2013, at Newark Liberty International Airport. Sigelman was arrested on Jan. 3, 2014, in the Philippines and appeared this afternoon (ChST) in Guam before U.S. Magistrate Judge Joaquin V.E. Manibusan III. Sigelman will have an initial appearance in New Jersey federal court on a date to be determined. Sigelman and Hammarskjold were charged by sealed complaints filed in the District of New Jersey on Nov. 8, 2013, with conspiracy to commit wire fraud, conspiracy to violate the FCPA, conspiracy to launder money and substantive violations of the FCPA.
Weisman pleaded guilty on Nov. 8, 2013, to a criminal information charging one count of conspiracy to violate the FCPA and to commit wire fraud. The charges and guilty plea were also unsealed today.
The charges allege the defendants made three separate payments from PetroTiger’s bank account in the United States to the official’s bank account in Colombia to secure approval from Colombia’s state-owned and state-controlled oil company for a lucrative oil services contract in the country. According to the charges, to conceal the bribes, the defendants first attempted to make the payments to a bank account in the name of the foreign official’s wife, for purported consulting services she did not perform. The charges allege that Sigelman and Hammarskjold provided Weisman invoices including her bank account information. The defendants made the payments directly to the official’s bank account when attempts to transfer the money to his wife’s account failed.
In addition, court documents allege that the defendants attempted to secure kickback payments at the expense of PetroTiger’s board members. According to the criminal charges, the defendants were negotiating an acquisition of another company on behalf of PetroTiger, including on behalf of several members of PetroTiger’s board of directors who were helping to fund the acquisition. In exchange for negotiating a higher purchase price for the acquisition, two of the owners of the target company agreed to kick back to the defendants a portion of the increased purchase price. According to the charges, to conceal the kickback payments, the defendants had the payments deposited into Sigelman’s bank account in the Philippines, created a “side letter” to falsely justify the payments, and used the code name “Manila Split” to refer to the payments amongst themselves.
The conspiracy to commit wire fraud count carries a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The FCPA counts each carry a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The department has worked closely with and has received significant assistance from its law enforcement counterparts in the Republic of Colombia and greatly appreciates their assistance in this matter. The department also thanks the Republic of the Philippines, including the Bureau of Immigration, for its assistance in this matter. Significant assistance was also provided by the Criminal Division’s Office of International Affairs.
The case is being investigated by the FBI’s Newark Division. The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Aaron Mendelsohn of the District of New Jersey.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .
NOTE: The court documents are attached.Related Materials:
Hammarskjold Complaint
Sigleman Complaint
Weisman InformationDallas-Based Companies Agree to Pay Civil Penalty to Settle Clean Air Act Violations Stemming from Illegal Import of VehiclesRead the Press Release
A Dallas-based group of companies and their owner must either stop importing vehicles or follow a comprehensive compliance plan to settle Clean Air Act (CAA) violations stemming from the alleged illegal import of over 24,167 highway motorcycles and recreational vehicles into the United States without proper documentation, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced. The four parties are also required to pay a $120,000 civil penalty.
“Importers of foreign made vehicles and engines must comply with the same Clean Air Act requirements that apply to those selling domestic products,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “We will continue to vigorously enforce the law to ensure that imported vehicles and engines comply with U.S. laws so that American consumers get environmentally sound products and violators do not gain an unfair economic advantage.”
“Vehicles are one of the largest sources of pollution that significantly affect public health,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Holding importers accountable for meeting U.S. emissions standards is critical to protecting the air we breathe, and to protecting companies that play by the rules.”
Savoia, BMX Imports and BMX Trading, and their owner, Terry Zimmer, allegedly imported the vehicles from several foreign manufacturers into the United States through the Port of Long Beach, Calif. The vehicles were then sold through the Internet and from a retail location in Dallas, Texas.
Today’s settlement requires that the companies either certify that they are no longer engaging in CAA-regulated activities or follow a comprehensive plan over the next five years that would include regular vehicle inspections, emissions testing, and other measures to ensure compliance at various stages of purchasing, importing, and selling vehicles. In addition, the companies are required to export or destroy 115 of their current vehicles that have catalytic converters or carburetors that do not adhere to the certificate of conformity that they submitted to EPA. The purpose of the certificate of conformity, required by the CAA, is to demonstrate that vehicles or engines meet applicable federal emission standards.
EPA discovered the alleged violations through inspections at Long Beach and other U.S. ports of entry, and through information provided by the company. EPA’s investigation showed that approximately 11,000 of the imported vehicles were not covered by an EPA certificate of conformity, which means that EPA is unable to confirm that the emissions from these vehicles meet federal standards. Other violations included approximately 23,000 vehicles sold without the required emissions warranty and approximately 500 vehicles that did not have proper emission control labels.
The CAA requires that all vehicles have certification, warranty and labeling prior to being imported or sold in the United States to demonstrate that they meet federal emission standards. Engines operating without proper emissions controls can emit excess carbon monoxide, hydrocarbons and nitrogen oxides which can cause respiratory illnesses, aggravate asthma and contribute to the formation of ground level ozone or smog.
The consent decree, lodged today in the United States District Court for the Northern District of Texas, is subject to a 30-day public comment period and court approval. The consent decree is available for review at www.justice.gov/enrd/Consent_Decrees.html information on the settlement:More information on the settlement: www2.epa.gov/enforcement/savoia-inc-bmx-imports-lp-bmx-trading-llc-and-terry-zimmer-clean-air-act-settlement
More information on EPA’s Clean Air Act mobile source enforcement programs: www2.epa.gov/enforcement/air-enforcement#mobile
Department of Justice Takes Steps to Strengthen Federal Background Check System for Firearms TransfersRead the Press Release
The Department of Justice today announced it is proposing a regulation that will clarify who, due to mental health reasons, is prohibited under federal law from receiving, possessing, shipping or transporting firearms. In addition to providing general guidance on the federal law, this clarification will help states determine what information may be appropriately shared with the federal background check system for firearms transfers – the National Instant Criminal Background Check System (NICS) – in order to keep guns out of the hands of individuals who may be a danger to themselves or others.
The revised definition clarifies that the statutory terms “adjudicated as a mental defective” and “committed to a mental institution” include persons who are found incompetent to stand trial or not guilty by reason of mental disease or defect; persons lacking mental responsibility or deemed insane; and persons found guilty but mentally ill, regardless of whether these determinations are made by a state, local, federal or military court. The proposed regulation also clarifies that the statutory term includes a person committed to involuntary inpatient or outpatient treatment.
“We are taking an important, commonsense step to clarify the federal firearms regulations, which will strengthen our ability to keep dangerous weapons out of the wrong hands,” said Attorney General Eric Holder. “This step will provide clear guidance on who is prohibited from possessing firearms under federal law for reasons related to mental health, enabling America’s brave law enforcement and public safety officials to better protect the American people and ensure the safety of our homes and communities. And it is emblematic of the Justice Department’s broader commitment to use every tool and resource at its disposal to combat gun violence and prevent future tragedies while respecting the Constitutional rights to which all Americans are entitled.”The NICS background check system is a critical tool in keeping guns out of the hands of those who cannot legally have one. To date, NICS has prevented more than 2 million guns from falling into the wrong hands. In order for background checks to continue to be effective, the system must have access to relevant, correct and complete information.
Clarifying the existing Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) regulation is just one of many common-sense steps the department has taken to keep guns out of the wrong hands. The department is working diligently to reduce gun violence and is committed to using every tool at its disposal, including implementing effective prevention, enforcement and re-entry strategies. In addition, the department is working with other federal departments and agencies to ensure relevant information is shared with the NICS and has also provided monetary support to states to improve their abilities to share this information.
The NPRM will be available for review beginning at 4:15pm on Friday, Jan. 3, 2014, at: http://www.federalregister.gov. Comments can be submitted to http://www.regulations.gov.Defendants David and Dominica Quichocho Sentenced Today in U.S. District CourtRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that DAVID TAIMANGLO QUICHOCHO, JR. was sentenced today in the District Court of Guam to 37 months incarceration, and five years of supervised release. QUICHOCHO, JR’S wife, DOMINICA BATO QUICHOCHO, was also sentenced today to a two-year term of Probation which includes six months of home confinement and community service.
The investigation was conducted by the United States Postal Service Inspectors. The case was handled by Assistant U.S. Attorney Rosetta San Nicolas.
Defendants QUICHOCHO, JR. and DOMINICA BATO QUICHOCHO both pled guilty in December 2012, to Conspiracy to Distribute Methamphetamine Hydrochloride, in violation of Title 21 U.S.C. Section 841(a)(1). Defendant QUICHOCHO, JR. ordered over five grams of methamphetamine hydrochloride from a supplier in California. The supplier concealed small amounts of methamphetamine hydrochloride in letters sent via First Class mail to Guam. QUICHOCHO, JR. then instructed his spouse, DOMINICA BATO QUICHOCHO, to pick up the letters containing the drug. Notably, the letters containing approximately 1.88 grams of the drug were detected and intercepted by a United States Postal Inspector.
U.S. Attorney Limtiaco thanks the United States Postal Inspector and the United States Postal Inspection Service for their efforts in our fight against drug trafficking.U.S. Attorney Limtiaco Invited as Panel Member at Association of Pacific Island Legislatures Meeting on “Preventing Human Trafficking in the Pacific Region”Read the Press Release
Alicia A.G. Limtiaco, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, along with Sarah Thomas-Nededog, Vice-President, West Care Pacific Islands; Dr. Julie Ulloa-Heath, President, Micronesian Youth Services Network; and Carol Hinkle-Sanchez, Assistant Attorney General, Guam Attorney General’s Office, were invited by the Association of Pacific Island Legislatures (APIL) to speak on the topic of “Preventing Human Trafficking in the Pacific Region.” According to their website, APIL membership is comprised of legislators from the Pacific region, including American Samoa, the Commonwealth of the Northern Mariana Islands, the Federated States of Micronesia (Chuuk, Kosrae, Pohnpei and Yap), Guam, Hawaii, the Republic of Kiribati, the Republic of the Marshall Islands, the Republic of Nauru, and the Republic of Palau. The APIL meet to consider matters in areas where regional cooperation, coordination, exchange and assistance may help governments achieve their goals through collection action.
U.S. Attorney Limtiaco and the panel members shared information on the “Pacific Regional Response to Combat Human Trafficking” initiative, which is a collaborative effort among the U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands (NMI), the National District Attorneys Association, the Department of State, the Department of Interior, Guam Human Trafficking Task Force, NMI Human Trafficking Intervention Coalition, and other community partners. The panel also discussed the intersection and relationship between human trafficking, sexual assault, child abuse, and domestic and family violence, and prevention and enforcement efforts in the Pacific region.
The Pacific Regional Response to Combat Human Trafficking initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders. The response calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. Providing fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics, to law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders, in our Pacific region island communities, is critical to effective prevention and enforcement efforts in the region.
Photos of the presenters are attached.
U.S. Attorney Alicia Limtiaco addressing the Association of Pacific Island Legislatures.Presenters:
United States Attorney Alicia A. G. Limtiaco Dr. Julie Ulloa-Heath, President, MYSN
Carol Hinkle-Sanchez, Assistant Attorney Sarah Thomas-Nededog, Vice-President,
General, Guam Attorney General’s Office West Care Pacific IslandsU.S. Attorney Alicia A.G. Limtiaco Guest SpeakerAt 2013 Micronesian Youth Services Network ConferenceRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was the guest speaker at the 2013 Micronesian Youth Services Network (MYSN) Conference held on April 17-19, 2013, at the Fiesta Resort in Saipan. This year’s theme was entitled, “Pursue, Cultivate, and Sustain a Balance.”
U.S. Attorney Limtiaco discussed during her presentation on “Bullying, Cyberbullying and On-line Sexual Predators,” the impact of bullying on those being victimized, the emotional, mental and psychological harm including youth suicide, and safety tips for youth and families. U.S. Attorney Limtiaco also discussed the dangers posed on the internet including on-line solicitation by sex predators, and internet safety tips for youth and families. U.S. Attorney Limtiaco spoke about Project Safe Childhood, a U.S. Department of Justice initiative, committed to the protection of children against child sexual exploitation and child pornography; and Project Safe Neighborhood, a U.S. Department of Justice initiative, focused on public awareness and prevention efforts against youth violence, gangs, and gun violence.
MYSN is a non-profit, non-governmental organization that is committed to showcasing practical, culturally competent ideas, strategies, challenges, and best practice efforts aimed at addressing the unique needs of youth and families in Micronesia to continually improve comprehensive youth services in Micronesia. The MYSN’s mission is to support, collaborate, coordinate, promote and strengthen youth programs and services throughout Micronesia.
Photos taken at the conference, courtesy of Kenny Reklai, are attached.
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U.S. Attorney Alicia Limtiaco addressing the attendees.
Conference attendees enjoying one of the workshops.Three Northern California Real Estate Investors Agree to Plead Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
Three Northern California real estate investors have agreed to plead guilty for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in U.S. District Court for the Northern District of California in Oakland against Rudolph Silva of Concord, Calif., Thomas Bishop of Pleasant Hill, Calif., and Leslie Gee of Danville, Calif. Including Silva, Bishop and Gee, a total of 43 individuals have pleaded guilty or agreed to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Silva, Bishop and Gee conspired with others, for various lengths of time between January 2008 and January 2011, not to bid against one another, and instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Contra Costa County, Calif. Silva, Bishop and Gee were also charged with conspiring to use the mail to carry out a scheme to fraudulently acquire title to selected Contra Costa County properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held. Additional charges were filed against Gee for his involvement in similar conduct in Alameda County, Calif., from as early as April 2009 until about November 2009.
"Today’s plea agreements are the latest step in the Antitrust Division’s efforts to hold accountable investors for their fraudulent and collusive activities at real estate foreclosure auctions,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division will continue to prosecute individuals who participated in illegal conspiracies and harmed distressed homeowners and lenders.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Alameda and Contra Costa County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and in some cases, the defaulting homeowner.
“The FBI and our partners have an obligation to investigate and pursue those who disrupt a free and fair marketplace,” said FBI Special Agent in Charge David J. Johnson of the San Francisco Field Office. “We will continue to educate the public on the criminality of bid rigging at real estate foreclosure auctions.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, or call the FBI tip line at 415-553-7400.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**
Justice Department Requires Heraeus Electro-Nite LLC to Divest Assets Acquired <br /> from Midwest Instrument Company Inc. to Keystone Sensors LLCRead the Press Release
The Department of Justice today announced that it will require Heraeus Electro-Nite LLC to divest certain assets that it acquired from Midwest Instrument Company Inc. (Minco) to Keystone Sensors LLC in order to resolve the department’s competitive concerns. The department said that, without the divestiture, Heraeus’ acquisition of Minco’s assets substantially lessens competition in the market for the development, production, sale and service of single-use sensors and instruments used to measure and monitor the temperature and chemical composition of molten steel in the steel manufacturing process.
The department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia challenging the consummated acquisition. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit.
Heraeus acquired Minco in September 2012. The department learned of the transaction, which was not required to be reported under the premerger notification law, shortly after it was completed. According to the complaint, prior to the acquisition, Heraeus and Minco competed head-to-head on price, service and innovation in supplying sensors and instruments to steel manufacturers, for whom the reliability and precise performance of these products is of critical importance.“The proposed settlement will benefit consumers in the single-use sensors and instruments market by facilitating the entry of a new competitor into this market,” said Deputy Assistant Attorney General Renata B. Hesse of the Department of Justice’s Antitrust Division. “Today’s enforcement action shows that the department is committed to redressing anticompetitive mergers, including consummated mergers for which reporting is not required under the premerger notification law.”
The department required the divestiture of a package of assets to an identified purchaser, Keystone, that had been evaluated and approved by the department. The department said the proposed settlement will ensure that the assets Keystone requires in order to enter the U.S. market and compete more effectively with Heraeus are readily available to it. In this way, the divestiture to Keystone will promote competition in the sensors and instruments market, which was reduced when Heraeus acquired Minco. Keystone was formed in May 2013 for the purpose of entering the U.S. market for sensors and instruments and to offer customers an additional alternative to Heraeus.
The proposed settlement also requires Heraeus to waive noncompete provisions it had imposed on some former employees. The waiver of these provisions will enable Keystone to hire experienced individuals with expertise in this specialized business. By making experienced individuals available to be hired immediately, Heraeus’ agreement to waive these noncompete provisions will also enhance competition in the single-use sensors and instruments market by facilitating the entry or expansion of other new competitors into the market. Heraeus also is required to provide the department with advance notice of any future acquisition in the market for sensors and instruments in the United States that is not subject to the reporting requirements of the premerger notification law.
Heraeus Electro-Nite Co. LLC is a Delaware corporation with its headquarters in Langhorne, Pa.
The acquirer, Keystone Sensors LLC, is a Delaware corporation headquartered in Cranberry Township, Pa. Its principal place of business will be located in Johnson City, Tenn.
The proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Maribeth Petrizzi, Chief, Litigation II Section, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the proposed settlement upon finding that it is in the public interest.2013 WAY Inauguration at John F. Kennedy High SchoolRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, was the guest speaker on October 12, 2013 at the Inauguration and Swearing-in Ceremony of the “We Are You” (WAY) Officers of John F. Kennedy High School.
U.S. Attorney Limtiaco congratulated the newly admitted officers and acknowledged their families and friends who continue to support them as they pursue their educational, professional and personal aspirations and, as they embark on their journey as WAY officers to represent and serve their fellow students, and collaborate with the administration, faculty and Parent Teacher School Association of John F. Kennedy High School.
U.S. Attorney Limtiaco encouraged the students to realize that “there is a larger value to learn about the world we live in – that it is a world full of different cultures, customs, economies, political and legal systems. And, most of all, a world of different, unique people all trying to carve out their own independent lives in their own unique societies. How people interact and relate to each other matters.”
She shared, “Each one of you is embarking on your next journey as a leader and representative of your fellow students – to serve and engage your fellow students in the dialogue of issues that affect and have an impact – on each one of you as students, on your school, on your community, on humanity and on the world.” She quoted President John F. Kennedy, “Leadership and learning are indispensable to each other.” “Change is the law of life and those who look only to the past or the present are certain to miss the future.”
U.S. Attorney Limtiaco encouraged the WAY officers to “represent, serve and lead their follow students with integrity, dignity, and respect. Stay grounded – listen and learn from those you represent – your fellow students; and from each other. Ask yourselves what you and WAY can do to make a positive impact – to make a positive change – in the lives of your fellow students, our community and the world; that will be your legacy and make a difference for future generations of students at John F. Kennedy High School and our island.”
Photo of U.S. Attorney Alicia Limtiaco, together with one of the newly admitted officers, Pim Limtiaco is attached.
Colorado Health Care Organization and One of Its Montana Hospitals to Pay $3.85 Million for <br /> Allegedly Providing Financial Benefits to Referring Physicians and Physician GroupsRead the Press Release
St. James Healthcare (St. James), a hospital located in Butte, Mont., and its parent company, Sisters of Charity of Leavenworth Health System (Sisters of Charity), a health care organization based in Denver, Colo., have agreed to pay $3.85 million to resolve allegations that they violated the Anti-Kickback Statute, the Stark Law and the False Claims Act by improperly providing financial benefits to physicians and physician groups that made referrals to the hospital, the Justice Department announced today.
The Anti-Kickback Statute prohibits the provision of remuneration with the intent to induce referrals of government health care program business. The Stark Law restricts financial relationships that hospitals may enter into with physicians who refer patients to them. Federal law prohibits payment by federal health care programs of medical claims that result from arrangements that violate the Anti-Kickback Statute or the Stark Law.
“Improper financial arrangements between hospitals and physicians not only undermine the integrity of the decisions that doctors make, they raise the cost of health care for all of us,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The department has longstanding concerns about such conduct and is committed to working with health care providers that come forward to disclose their misconduct.”The settlement announced today resolves allegations that St. James and Sisters of Charity provided various improper financial incentives to physicians and physician groups that were involved in a joint venture with St. James to own and operate a medical office building on the St. James campus. These incentives included a payment to the joint venture that increased the share values for the physicians and physician groups in the joint venture and resulted in below fair market value lease rates for the physicians renting space in the medical office building. Additional incentives provided by St. James and Sisters of Charity included below fair market value lease rates for the land upon which the medical office building was constructed and other below fair market value arrangements related to shared facilities, use and maintenance. These issues were disclosed by St. James and Sisters of Charity to the government.
“This matter is of great significance to Montanans because it helps ensure federal health care programs deliver services in a cost-effective and efficient manner,” said U.S. Attorney for the District of Montana Michael W. Cotter. “We are encouraged that hospitals like St. James Healthcare are taking these issues seriously by reviewing their operations and making disclosures to the government where necessary.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused on efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was handled by the U.S. Attorney’s Office for the District of Montana, the Department of Justice Civil Division, Commercial Litigation Branch and the Department of Health and Human Services Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Eastern California Real Estate Investor Pleads Guilty to Bid Rigging and Fraud at Public Real Estate Foreclosure AuctionsRead the Press Release
An Eastern California real estate investor pleaded guilty today to conspiring to rig bids and commit mail fraud at public real estate foreclosure auctions in Eastern California, the Department of Justice announced.
Anthony B. Joachim of Stockton, Calif., entered his guilty plea in U.S. District Court for the Eastern District of California in Sacramento. Joachim was originally indicted by a federal grand jury in Sacramento on Dec. 7, 2011, along with three other investors – Andrew B. Katakis, Donald M. Parker and Wiley C. Chandler – and one auctioneer – W. Theodore Longley. All five individuals were charged with conspiring with other unnamed co-conspirators to rig bids and commit mail fraud when purchasing selected properties at public real estate foreclosure auctions in San Joaquin County, Calif. The indictment was superseded on May 8, 2013, to include an obstruction of justice charge against Katakis. Chandler pleaded guilty on Feb. 24, 2012, and trial is scheduled to begin against the remaining individuals on Jan. 28, 2014.
According to court documents, Joachim conspired with others not to bid against one another and to instead designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Joaquin County. Joachim was also charged with conspiring to use the mail to carry out a scheme to fraudulently acquire title to selected San Joaquin County properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have otherwise gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held. According to Joachim’s plea agreement, he participated in the conspiracies between about April 2009 until about October 2009.
“Today’s plea is the 11th in the Antitrust Division’s ongoing investigation of bid rigging and fraud involving real estate foreclosure auctions in the Eastern District of California,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division has uncovered similar schemes across the country and continues to prosecute those who profit by undermining competition at real estate foreclosure auctions.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Joaquin County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and in some cases, the defaulting homeowner.
“My office will continue to fight real estate fraud in all its forms, including bringing to justice those who would subvert public foreclosure auctions for their own personal gain,” said United States Attorney Benjamin B. Wagner of the Eastern District of California.
Joachim pleaded guilty to bid rigging, a violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either of those amounts is greater than the statutory maximum fine. Joachim also pleaded guilty to conspiracy to commit mail fraud, which carries a maximum sentence of 30 years in prison and a $1 million fine.
The guilty plea entered today is the latest in the department’s ongoing federal antitrust investigation of fraud and bidding irregularities in certain real estate auctions in San Joaquin County. The investigation is being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, the FBI’s Sacramento Division and the San Joaquin County District Attorney’s Office. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm, contact the U.S. Attorney’s Office for the Eastern District of California at 916-554-2700 or contact the FBI’s Sacramento Division at 916-481-9110.
Today’s action was brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.“Joint Interagency Task Force West Transnational Crime Workshop” U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands Provides TrainingRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, announced that her office conducted training to law enforcement on human trafficking investigations at the “Joint Interagency Task Force West Transnational Crime Workshop” held in the Republic of Palau on July 26, 2013. U.S. Attorney Limtiaco, Assistant U.S. Attorney (AUSA) Rosetta San Nicolas and AUSA Rami Badawy, also conducted training and presentations at the 2nd Pacific Regional Response to Combat Human Trafficking International Conference held on July 22-26, 2013, in the Republic of Palau.
The “Joint Interagency Task Force West Transnational Crime Workshop” was attended by approximately 30 officers of the Pacific regional community, some of whom are in the photos below.
U.S. Attorney Alicia Limtiaco Talks with Students at Vicente S.A. Benavente Middle SchoolRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to speak at Vicente S.A. Benavente Middle School on October 28, 2013. She addressed and shared with over 430 eighth grade students the significance of Red Ribbon Week and being healthy and drug free. U.S. Attorney Limtiaco also talked with the students about preventing and stopping bullying and cyber-bullying, and how to be safe on the Internet.
The first Red Ribbon Celebration was organized in 1986 by a grassroots organization of parents concerned about the destruction caused by alcohol and drug abuse. The red ribbon was adopted as a symbol of the movement in honor of Enrique “Kiki” Camarena, an agent with the U.S. Drug Enforcement Administration who was kidnapped and killed while investigating drug traffickers. The Campaign has reached millions of children and has been recognized by the U.S. Congress. Red Ribbon Week is a chance to be visible and vocal in our desire for a drug-free community. The Campaign provides communities with a forum to bring together parents, schools and businesses to find new and innovative ways to keep kids drug free.
Attached are photos taken at the school.
Left to Right, U.S Attorney Alicia Limtiaco, Myles Macaraig (student), Victoria Ananich (student),
Chona Eco (PFC-Outreach Social Worker), and Kin Fernanez (Asst. Principal).
Students listening to U.S. Attorney Alicia Limtiaco.U.S. Attorney Alicia A.G. Limtiaco Speaker at FBI’s Citizens AcademyRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to speak on November 6, 2013 at the Federal Bureau of Investigation’s (FBI) Citizens Academy. This is the 6th FBI Citizens Academy held in Guam. U.S. Attorney Limtiaco has previously presented at the FBI Citizens Academy on topics related to the Department of Justice and U.S. Attorney’s Office.
U.S. Attorney Limtiaco discussed the mission and priorities of the Department of Justice and U.S. Attorney’s Office, the type of cases handled by the Criminal and Civil Divisions of the U.S. Attorney’s Office, and the various initiatives of the Department and U.S. Attorney’s Office including the “Smart on Crime Initiative” announced by Attorney General Eric Holder in August 2013.
The FBI offers members of the community an up close and personal look at how it operates through their Citizens Academy program. The program brings the community’s civic, business, and religious leaders together to experience firsthand how the FBI investigates crimes and threats to our national security and learn about the various tools and techniques we employ to carry out our mission.
FBI Citizens Academy class members are nominated by a Bureau employee or a previous academy graduate. To be eligible, you must be at least 21 years old, with no felony convictions, and because of the classified investigative techniques discussed, nominees must also undergo a background check and get an interim security clearance. The FBI Citizens Academy curriculum mirrors new-agent training. That means class members get plenty of hands-on instruction — from shooting firearms and learning how to fingerprint and handcuff suspects to collecting evidence from a crime scene and operating vehicles under emergency situations.
Jose Rios Middle School Invites Assistant U.S. Attorney Stephen Leon Guerrero for Career DayRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that Assistant U.S. Attorney (AUSA) Stephen Leon Guerrero was invited to speak at Jose Rios Middle School for Career Day on April 12, 2013. AUSA Leon Guerrero spoke to two 6th and 7th grade classes with approximately 25 students in each. He talked to them about the educational process of becoming an attorney and his duties as an Assistant U.S. Attorney. He also talked about the U.S. Attorney’s role with Red Ribbon Week, as well as the G.R.E.A.T. Program and Cyber-bullying.
The first Red Ribbon Celebration was organized in 1986 by a grassroots organization of parents concerned about the destruction caused by alcohol and drug abuse. The red ribbon was adopted as a symbol of the movement in honor of Enrique “Kiki” Camarena, an agent with the U.S. Drug Enforcement Administration who was kidnapped and killed while investigating drug traffickers. The Campaign has reached millions of children and has been recognized by the U.S. Congress. Red Ribbon Week is a chance to be visible and vocal in our desire for a drug-free community. The Campaign provides communities with a forum to bring together parents, schools and businesses to find new and innovative ways to keep kids drug free.The G.R.E.A.T. Program=s primary objective is awareness and prevention of delinquency, youth violence, and gang membership. The G.R.E.A.T. lessons, aimed at elementary and middle school students, focus on teaching life skills to help students avoid delinquent behavior and violence, and learn to solve problems.
The U.S. Attorney’s Office (“USAO”) for the Districts of Guam and the Northern Mariana Islands (“NMI”), continues to conduct presentations at various schools on the topics of Bullying and Cyber-bullying.
Attached are photos of AUSA Leon Guerrero addressing the students.