District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Statement of Attorney General Eric Holder on the Supreme Court Ruling on the Defense of Marriage ActRead the Press Release
Attorney General Eric Holder today issued the following statement regarding the Supreme Court ruling on the Defense of Marriage Act.
“Today’s historic decision in the case of United States v. Windsor, declaring Section 3 of the Defense of Marriage Act unconstitutional, is an enormous triumph for equal protection under the law for all Americans. The Court’s ruling gives real meaning to the Constitution’s promise of equal protection to all members of our society, regardless of sexual orientation. This decision impacts a broad array of federal laws. At the President’s direction, the Department of Justice will work expeditiously with other Executive Branch agencies to implement the Court’s decision. Despite this momentous victory, our nation’s journey – towards equality, opportunity, and justice for everyone in this country – is far from over. Important, life-changing work remains before us. And, as we move forward in a manner consistent with the Court’s ruling, the Department of Justice is committed to continuing this work, and using every tool and legal authority available to us to combat discrimination and to safeguard the rights of all Americans.”Justice Department Statement on the Request to Hong Kong for Edward Snowden’s Provisional ArrestRead the Press Release
“The U.S. is disappointed and disagrees with the determination by Hong Kong authorities not to honor the U.S. request for the arrest of the fugitive, Edward J. Snowden.
“The request for the fugitive’s arrest for purposes of his extradition complied with all of the requirements of the US/Hong Kong Surrender Agreement. At no point, in all of our discussions through Friday, did the authorities in Hong Kong raise any issues regarding the sufficiency of the U.S.'s provisional arrest request. In light of this, we find their decision to be particularly troubling.
“Throughout this event, U.S. Department of Justice authorities have been in continual contact with their Hong Kong counterparts starting on June 10, 2013 when we learned that Snowden was in Hong Kong.
“We have had repeated communications with our Hong Kong counterparts at senior levels.
“Attorney General Eric Holder placed a phone call on June 19th EDT, with his counterpart, Hong Kong Secretary for Justice Rimsky Yuen, stressing the importance of the matter and urging Hong Kong to honor our request for Snowden’s arrest.
“There have been repeated engagements by the U.S. Department of State and U.S. Consulate General in Hong Kong.
“There have been repeated engagements by the FBI with their law enforcement counterparts.
“And finally, there have been continual communications by the Criminal Division’s Office of International Affairs with counterparts at HKSAR’s Department of Justice, International Law Division and Mutual Legal Assistance Unit.”
BACKGROUND TIMELINE INFORMATION
• On June 14, 2013, the fugitive, Edward J. Snowden, was charged by complaint in the ED VA with violations of:
o 18 U.S.C. § 793(d) (Unauthorized Disclosure of National Defense Information);
o 18 U.S.C. § 798(a)(3) (Unauthorized Disclosure of Classified Communication
Intelligence); and
o 18 U.S.C. § 641 (Theft of Government Property).• On that same date, a warrant was issued for his arrest.
• On June 15, 2013, the United States requested pursuant to the US/HK Surrender Agreement that HKSAR authorities provisionally arrest the fugitive for purposes of extradition.
• The U.S. request complied with all aspects of the treaty in force between the United States and the HKSAR – containing all documents and information required for HKSAR to provisionally arrest Snowden.
• June 17, 2013, Hong Kong authorities acknowledged receipt of our request. Despite repeated inquiries, Hong Kong authorities did not respond with any requests for additional information or documents, stating only that the matter was “under review” and refusing to elaborate;
• On June 21, 2013, Hong Kong authorities requested additional information concerning the U.S. charges and evidence. The U.S. had been in communication with the Hong Kong authorities about their inquiries.
• U.S. authorities were in the process of responding to the request when we learned that Hong Kong authorities had allowed the fugitive to leave Hong Kong.
• On June 23, 2013, Hong Kong authorities notified the U.S. that they had found our request insufficient and had allowed the fugitive to leave Hong Kong without acting on or request.
General Electric Aviation Systems to Pay<br /> U.S. $6.58 Million to Resolve False Claims Act AllegationsRead the Press Release
General Electric Aviation Systems (GEAS) has agreed to pay $6.58 million to settle allegations that it submitted false claims in connection with multiple Department of Defense contracts, the Justice Department announced today. GEAS, headquartered in Ohio, manufactures and sells integrated systems and components for commercial, corporate, military and marine aircraft.
“This case demonstrates the Department of Justice’s commitment to ensure that our military receives quality products to perform the important mission of protecting and defending our country,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “The department will aggressively pursue those who put that mission at risk.”
GEAS contracted to manufacture and deliver to the Navy external fuel tanks (EFTs) for use on the F/A-18 Hornet strike fighter jet. GEAS manufactured the EFTs at its plant in Santa Ana, California. In March 2008, a GEAS-manufactured EFT failed government testing, which led to a multi-year investigation by the local California offices of the Defense Contract Management Agency, the Defense Contract Audit Agency, the Defense Criminal Investigative Service and the Navy Criminal Investigative Service. As a result of that investigation, the United States alleged that GEAS knowingly failed to comply with contract specifications and failed to undertake proper quality control procedures in connection with 641 EFTs it delivered to the Navy between June 2005 and February 2008.
In addition, the settlement resolves allegations that, between June 2010 and June 2011, GEAS knew that it falsely represented to another government contractor that GEAS had performed a complete inspection of 228 drag beams to be used on Army UH-60 Blackhawk helicopters, and that those 228 drag beams conformed to all contract specifications.
“Defense contractors agree to provide the government with a quality product, and in doing so, they promise to follow strict manufacturing and testing protocols to ensure that our military receives only the best equipment,” said André Birotte Jr., U.S. Attorney for the Central District of California. “In this case, some of the hardware sold to the government did not meet quality-control standards, and that failure could have put our service members at risk. This multimillion dollar settlement is designed to ensure that General Electric Aviation Systems does not engage in this type of misconduct in the future, and this case should serve as a warning to any government contractor who thinks it can cut corners.”
Carter Stewart, U.S. Attorney for the Southern District of Ohio, added, “We are determined to protect the integrity of the system that provides goods and services to the men and women who serve in the armed forces. The False Claims Act is an effective and powerful tool to help us carry out our mission.”
Allegations about GEAS’s misconduct at the Santa Ana facility were included in a lawsuit filed by former GEAS Santa Ana employee Jeffrey Adler under the qui tam or whistleblower provisions of the False Claims Act, which permit private individuals called “relators” to bring lawsuits for false claims on behalf of the United States, and to receive a portion of the proceeds of any settlement or judgment. Mr. Adler’s share of the settlement has not yet been determined.
This settlement was the result of a coordinated effort by the Department of Justice, Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Central District of California; the U.S. Attorney’s Office for the Southern District of Ohio; the Defense Contract Management Agency; the Defense Contract Audit Agency; the Defense Criminal Investigative Service; and the Navy Criminal Investigative Service in investigating and resolving the allegations.
The qui tam lawsuit, filed in the U.S. District Court for the Southern District of Ohio, is captioned United States ex rel. Adler v. General Electric Aviation Services (1-CV-00313). The claims resolved by the settlement are allegations only and do not constitute a determination of liability.
Former Mississippi Corrections Officer Sentenced for Orchestrating Assault on InmateRead the Press Release
Kenny McLaughlin, 35, a corrections officer at the Stone County Regional Correctional Facility in Stone County, Miss., was sentenced today to serve one year in federal prison and ordered to pay restitution of $6,000 for ordering the beating of an inmate at the detention facility in violation of federal civil rights laws.McLaughlin pleaded guilty on Mar. 29, 2013 to willfully violating the civil rights of persons in his custody. According to court documents filed in connection with his guilty plea, on May 12, 2008, McLaughlin, while working as a corrections officer, ordered an inmate to arrange an unwarranted assault on another inmate. As a result of McLaughlin’s order, the victim was assaulted by two fellow inmates in a shower area. McLaughlin was aware of the assault as it happened but did not notify any other officer or medical personnel of the assault. The victim suffered cuts to his face, bruises to his chest and fractured ribs.
“This sentence demonstrates that assaults on inmates whether by corrections officers personally or orchestrated by corrections officers undermine the rule of law and will not be tolerated,” said Deputy Assistant Attorney General Roy L. Austin Jr. of the Department of Justice’s Civil Rights Division. “The Justice Department is committed to prosecuting law enforcement officers who violate the constitutional rights of individuals in their custody.”
“Every citizen has the right to expect law enforcement officers to act legally and in accordance with the United States Constitution. Former Corrections Officer McLaughlin’s actions were inexcusable and should serve as a reminder that no one is above the law,” said U. S. Attorney for the Southern District of Mississippi Gregory K. Davis.
This case was investigated by the Gulfport Resident Agency of the Jackson Division of the FBI and is being prosecuted by Assistant U.S. Attorney Glenda R. Haynes of the U.S. Attorney’s Office for the Southern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice
Former Alabama Corrections Officer Convicted of Federal Civil Rights Offenses and Obstruction of Justice for Beating Death of an InmateRead the Press Release
The Justice Department announced that yesterday a federal jury convicted Michael Smith, 38, a former corrections officer of the Alabama Department of Corrections, of two civil rights violations and five obstruction of justice-related violations in connection with the beating death of former inmate Rocrast Mack.
The incident occurred at Ventress Correctional Facility in Clayton, Ala., on Aug.4, 2010, and at the time of the incident, Smith was a lieutenant with supervisory authority over other officers on his shift. The jury convicted Smith of assaulting Mack with a baton in an office in the prison and of assaulting Mack again several minutes later in the medical unit by repeatedly stomping on Mack’s head. Mack died the following day in a Montgomery, Ala., hospital.
Scottie Glenn, another former corrections officer at Ventress, pleaded guilty on Nov.18, 2011, in U.S. District Court for the Middle District of Alabama to one count of violating the civil rights of Mack for his role in the incident and to one count of conspiring with other corrections officers to cover up the beatings. Matthew Davidson, another former corrections officer, pleaded guilty on Jan. 15, 2013, to two civil rights violations and one count of conspiring with other officers to cover up the beatings.
Smith was remanded to the custody of the U.S. Marshals Service pending sentencing. The sentencing hearing is yet to be scheduled. Smith faces a maximum potential penalty of life in prison.
"The jury found that defendant Smith, a high ranking official at Ventress Prison, violently caused the death of an inmate entrusted to his care,” said Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr. “Through its verdict, the jury has vindicated the principle, enforced by the Department of Justice, that no person is above the law. We hope that today’s verdict brings some measure of solace to the family of Rocrast Mack.”
This case was investigated by the Mobile, Ala., Division of the FBI, in partnership with the Alabama Bureau of Investigation, and was prosecuted by Trial Attorney Patricia Sumner of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Jerusha Adams of the U.S. Attorney’s Office for the Middle District of Alabama.Former Executive at Florida-Based Lender Processing Services Inc. Sentenced to Five Years in Prison for Role in Mortgage-Related Document Fraud SchemeRead the Press Release
A former executive of Lender Processing Services Inc. (LPS) – a publicly traded company based in Jacksonville, Fla. – was sentenced today to serve five years in prison for her participation in a six-year scheme to prepare and file more than 1 million fraudulently signed and notarized mortgage-related documents with property recorders’ offices throughout the United States, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Florida Robert E. O’Neill and Special Agent in Charge Michelle S. Klimtof the FBI Jacksonville Division.
Lorraine Brown, 56, of Alpharetta, Ga., was sentenced by Senior U.S. District Judge Henry Lee Adams Jr. in the Middle District of Florida. In addition to her prison term, Brown was sentenced to serve two years of supervised release and ordered to pay a fine of $15,000.On Nov. 20, 2012, Brown pleaded guilty to conspiracy to commit mail and wire fraud.“Lorraine Brown will spend five years in prison for her central role in a scheme to fraudulently execute thousands of mortgage-related documents while our nation’s housing market was at its most vulnerable point in generations,” said Acting Assistant Attorney General Raman. “The documents that were fraudulently produced under Brown’s direction were relied upon in court proceedings, including a significant number of foreclosure and bankruptcy matters. Today’s sentencing represents appropriate punishment for someone who sought to capitalize on the nation’s housing crisis.”
“Floridians were hard hit by the downturn in the real estate market,” said U.S. Attorney O’Neill. “We will continue to pursue individuals like Brown who took advantage of consumers for personal gain and contributed to the financial crisis. Prosecuting financial crimes remains a priority for our office.”
“The investigation of sophisticated mortgage and corporate fraud schemes continues to be a priority for the Federal Bureau of Investigation as such criminal activities have a significant economic impact on our community,” said Special Agent in Charge Klimt.
Brown was an executive at LPS and the chief executive of DocX LLC, which was a wholly-owned subsidiary of LPS, until it was closed down in early 2010. DocX’s main clients were residential mortgage servicers, which typically undertake certain actions for the owners of mortgage-backed promissory notes. Servicers hired DocX to, among other things, assist in creating and executing mortgage-related documents filed with recorders’ offices.
According to Brown’s plea agreement, employees of DocX, at the direction of Brown and others, began forging and falsifying signatures of authorized personnel on the mortgage-related documents that they had been hired to prepare and file with property recorders’ offices. Only specific personnel at DocX were authorized by clients to sign the documents, but the documents were fraudulently notarized as if actually executed by authorized DocX employees.
According to plea documents, Brown implemented these signing practices at DocX to enable DocX and Brown to generate greater profit. Specifically, DocX was able to create, execute and file larger volumes of documents using these signing and notarization practices. To further increase profits, DocX also hired temporary workers to act as authorized signers. These temporary employees worked for much lower costs and without the quality control represented by Brown to DocX’s clients. Some of these temporary workers were able to sign thousands of mortgage-related instruments a day. Between 2003 and 2009, DocX generated approximately $60 million in gross revenue.After these documents were falsely signed and fraudulently notarized, Brown authorized DocX employees to file and record them with local county property records offices across the country. Many of these documents were later relied upon in court proceedings, including property foreclosures and federal bankruptcy actions. Brown admitted she understood that property recorders, courts, title insurers and homeowners relied upon the documents as genuine.
This case is being prosecuted by Trial Attorney Ryan Rohlfsen and Assistant Chief Glenn S. Leon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark B. Devereaux of the U.S. Attorney’s Office for the Middle District of Florida. This case was investigated by the FBI, with assistance from the state of Florida’s Department of Financial Services.
This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 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’s 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 more than 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, visit www.stopfraud.gov
Federal Inmate Indicted in Pennsylvania for Murder of Correctional OfficerRead the Press Release
A federal grand jury in Scranton, Penn., returned an indictment today charging Jessie Con-Ui, a federal inmate, with the murder of federal corrections officer Eric Williams, the Justice Department announced.
Con-Ui, 36, was charged in U.S. District Court for the Middle District of Pennsylvania with one count of first degree murder, one count of first degree murder of a U.S. corrections officer and one count of possessing contraband in prison.
The indictment alleges that Con-Ui killed Williams on Feb. 25, 2013, in a premeditated attack at the Canaan Federal Correction Complex in Waymart, Penn. According to the indictment, Con-Ui stabbed Williams with a sharpened weapon and struck him repeatedly.
If convicted, Con-Ui faces a maximum penalty of death or life in prison.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The charges against Con-Ui resulted from an investigation by the FBI, with assistance from the Federal Bureau of Prisons. The case is being prosecuted by the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Middle District of Pennsylvania.
U.S. Restrains 1909 Pablo Picasso Painting Valued at $11.5 MillionRead the Press Release
The Department of Justice today restrained the 1909 Pablo Picasso painting “Compotier et tasse” – estimated to be worth $11.5 million – on behalf of the Italian government, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Preet Bharara of the Southern District of New York; and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
The restraining order was obtained in response to an official request by the government of Italy, pursuant to the treaty between the United States of America and the Italian Republic on Mutual Legal Assistance in Criminal Matters for assistance in connection with its ongoing criminal investigation and prosecution of Gabriella Amati. Amati and her late husband, Angelo Maj, were charged by the Italian Public Prosecutors’ Office in Milan with embezzlement and fraudulent bankruptcy offenses under Italian law, and Italian prosecutors have obtained a restraining order for the Picasso painting in connection with the criminal proceeding.
According to documents filed in the Italian criminal proceeding, Amati and Maj, in collaboration with a public official of the city of Naples, Italy, employed various schemes to misappropriate tax receipts collected for Naples by companies the couple controlled. In addition, the Italian prosecutors alleged that Amati and Maj orchestrated a number of schemes to embezzle Naples’ tax revenue, including the use of fraudulent service contracts, forged accounting records, inflated operational expenses and fraudulently claimed refunds to Naples taxpayers, all to justify transfers to the couple’s own bank accounts of the taxes that were collected for the city, resulting in a loss of approximately 33 million Euros ($44 million) to Naples.
On May 21, 2013, ICE Homeland Security Investigations (HSI) special agents in New York located and recovered the painting, which was being offered for private sale in the amount of $11.5 million.
An application to enforce the Italian restraining order was filed on June 21, 2013, in the U.S. District Court for the Southern District of New York, seeking to restrain the Picasso painting belonging to Amati and Maj and located in New York City. U.S. District Judge Victor Marrero granted the U.S. government’s application and issued a restraining order prohibiting the removal, sale or disposition of the Picasso painting from the court’s jurisdiction. The United States is working in close cooperation with the Italian Public Prosecutors’ Office in Milan and the Justice Department’s Attaché in Rome to forfeit the painting in an effort to repatriate the Picasso to Italy.
“Restraining this Picasso painting is yet another example of the Justice Department’s close partnership with law enforcement around the world,” said Acting Assistant Attorney General Raman. “Our asset forfeiture section is committed to finding and securing every last penny of criminal proceeds and putting those ill-gotten proceeds back in the hands of victims, regardless of where they reside.”“We are pleased to have played a role in securing this valuable work of art by the celebrated artist, Pablo Picasso, on behalf of the Italian government,” said U.S. Attorney Bharara. “Our commitment to ‘taking the profit out of crime’ transcends national boundaries and is the operating principle of our asset forfeiture program.”
“Restraining this valuable artwork is an effort to help recover some of the estimated $44 million that this couple stole from the tax-paying citizens of Naples,” said Director Morton. “We are very pleased that our investigation has led to the recovery of this painting that is so significant to the Italian people. This is an example of the fine work of our HSI cultural repatriation special agents. We will continue our efforts to return stolen antiquities to their rightful owners.”
The U.S. enforcement of the Italian order is being handled by Assistant Deputy Chief Jack de Kluiver and Trial Attorney Jennifer Wallis of Criminal Division’s Asset Forfeiture and Money Laundering Section and Asset Forfeiture Unit Chief Sharon Cohen Levin and Assistant U.S. Attorney Christine Magdo of the U.S. Attorney’s Office for the Southern District of New York, ICE HSI New York and Rome, and the Criminal Division’s Office of International Affairs. In Italy, the case is being handled by the Italian Public Prosecutor’s Office in Milan, and investigated by the Guardia di Finanza police service.
Statement of Attorney General Eric Holder on the Supreme Court Decision in Fisher v. University of TexasRead the Press Release
Attorney General Eric Holder today issued the following statement regarding the Supreme Court’s decision in Fisher v. University of Texas.
“I am pleased that the Supreme Court has followed longstanding precedent that recognizes the compelling governmental interest in ensuring diversity in higher education. The educational benefits of diversity are critically important to the future of this nation. As the Court has repeatedly recognized, diverse student enrollment promotes understanding, helps to break down racial stereotypes, enables students to better understand people of different races, and prepares all students to succeed in, and eventually lead, an increasingly diverse workforce and society. Business leaders have long emphasized the importance of a qualified, diverse workforce to their success in a global economy. And the federal government, in particular, has a vital interest in drawing its personnel, including its military leaders, from a well-qualified and diverse pool of university graduates of all backgrounds who have the perspective and understanding necessary to govern and defend this great country.
“The University of Texas’s implementation of its admissions program will now be reevaluated by the lower courts. The Department is committed to working with colleges and universities around the country to find ways to promote educational diversity that are consistent with the law.”
Justice Department Reaches Agreement with Hanover <br /> County, Va., on Bailout Under the Voting Rights ActRead the Press Release
The Justice Department announced today that it has reached an agreement with Hanover County, Va., that will allow for the county, a covered jurisdiction under the special provisions of the Voting Rights Act, to bail out from coverage under these provisions. Bailout will exempt Hanover County, along with the town of Ashland, from the preclearance requirements of Section 5 of the Voting Rights Act. The agreement is in the form of a consent decree filed today in the U.S. District Court for the District of Columbia and must be approved by the court.
Under Section 5 of the Voting Rights Act, certain covered jurisdictions, determined according to Section 4 of the Act, are required to seek preclearance for any changes in voting qualifications, standards, practices or procedures from the U.S. District Court for the District of Columbia or from the U.S. Attorney General, prior to their implementation. Section 4 of the act provides that a covered jurisdiction may seek to “bail out,” or remove itself from such coverage, and therefore be exempted from the preclearance requirements, by seeking a declaratory judgment before a three-judge panel in the U.S. District Court for the District of Columbia. A bailout judgment can be issued only if the court determines that the jurisdiction meets certain eligibility requirements for bailout contained in the statute, including a 10-year record of nondiscrimination in voting-related actions. The act also provides that the Attorney General can consent to entry of a judgment of bailout only if, based upon investigation, the Attorney General is satisfied that the jurisdiction meets the eligibility requirements.
Hanover County filed its bailout action in the U.S. District Court for the District of Columbia on May 2, 2013. Counsel for the county contacted the Attorney General prior to filing the action, indicating that the county was interested in seeking bailout. The county provided the Justice Department with substantial information, and the department conducted an investigation to determine the county’s eligibility. Based on that investigation, the department is satisfied that Hanover County meets the Voting Rights Act’s requirements for bailout.
“In the department’s view, the county has met the requirements necessary for bailout. We reached this conclusion after thoroughly reviewing information provided by the county as well as information gathered during the Department’s independent investigation,” said Matthew Colangelo, Deputy Assistant Attorney General for the Civil Rights Division. “We appreciate the county’s cooperation in the resolution of this matter.”
The consent decree details the legal and factual basis for a bailout determination and, if approved by the court, the county’s request will be granted. The court will retain jurisdiction of the action for 10 years and can reopen the action upon the motion of the Attorney General or any aggrieved person alleging conduct by the county that would have originally precluded the county from bailing out if it had occurred during the 10-year period preceding entry of the consent decree.
Information about bailout, the Voting Rights Act and other federal voting laws is available on the Department of Justice website at www.justice.gov/crt/voting. Complaints may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Statement of Department of Justice Spokeswoman Nanda Chitre on Edward SnowdenRead the Press Release
As we stated yesterday, the United States had contacted authorities in Hong Kong to seek the extradition of Mr. Snowden, based on the criminal complaint filed in the Eastern District of Virginia, and in accordance with the US-Hong Kong Agreement for the Surrender of Fugitive Offenders. We have been informed by the Hong Kong authorities Mr. Snowden has departed Hong Kong for a third country. We will continue to discuss this matter with Hong Kong and pursue relevant law enforcement cooperation with other countries where Mr. Snowden may be attempting to travel.
U.S. Attorney Keynote Speaker at National Day of Prayer LuncheonRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands, was invited by the Guam Interfaith Committee to be the keynote speaker at the annual National Day of Prayer Luncheon held on May 16, 2012 at the Aurora Hotel.
The Guam Interfaith Committee is composed of representatives of seven faith traditions currently present on Guam. These faiths are: Hindu, Judaism, Buddhism, Christianity, Muslim, Baha’i plus Chamorro Spiritual Tradition. The members came together immediately after 9/11 to counter any hate acts by misguided individuals. The Guam Interfaith Committee members work closely with one another to promote mutual understanding, respect, tolerance, and compassion between their faiths. The Committee sponsors an annual Interfaith Thanksgiving Service which began since 9/11 with over 200 in attendance and has conducted the service every year since 9/11. They also commenced the National Day of Prayer Luncheon six years ago which is now an annual event.
United States Attorney Limtiaco spoke about the Diverse Communities Outreach group she started in early March 2011. This group consists of faith-based community leaders and consuls general. The purpose of the meetings is to provide a forum to discuss crime prevention, civil rights and immigration issues, and to strengthen the relationship between law enforcement and our community.
TEAM FEDS Raised $11,000 for the American Cancer Society’s 2012 Relay for Life EventRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands, announced that her office joined the thousands that flocked to the annual Relay for Life Event held at the George Washington Senior High School track to celebrate cancer Survivors, remember loved ones lost to cancer and to join with the many teams on Guam that participate in the fight against cancer.
Team FEDS, “Friends Engaging in Dynamic Service,” is comprised of co-workers and friends from various federal law enforcement agencies. Team FEDS joined the fight against cancer in 2003 by forming the team, when one of their co-workers was stricken by cancer. The team strives to raise $10K every year through fundraisers such as their annual Chili Cook-off and other creative fundraisers. Their biggest achievement was in 2008 when they raised $14K. This year, Team FEDS, with only 17 online team members, four being Survivors, but with many supporters, raised $11,000. Team FEDS Relay in support of cancer research and clinical studies -- they Relay because they are FED UP with CANCER!
Attached is a photo of the team taken the night of Relay. Guam’s Relay for Life annual event is the largest American Cancer Society event on Guam. There were 83 teams registered for this year’s Relay resulting in raising the amount of $475,577.00.
Asian American Pacific Island Heritage MonthRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands, was invited to attend the Guam Federation of Asian and Pacific People of Guam luncheon on May 20, 2012, in celebration of Asian American Pacific Island Heritage Month.
According to their booklet, the Guam Federation of Asian and Pacific People of Guam was organized in 1993 with membership composing of the Filipino Community of Guam, Korean Association of Guam, Vietnamese Association of Guam, Indian Community of Guam, the Chinese-Vietnamese Friendship of Guam and the Chinese Community. Since then, other associations have been added, namely, the Federation of Chinese Overseas, Palau Community of Guam, Asahi Club of Guam, Peleliu Club of Guam, The FSM Association of Guam, and the Chuukese Association of USA. Their objective is to promote friendship and camaradie among themselves, with the people of Guam, and with the people of the neighboring island countries.
Attached is a photo that was taken of the membership at the lunch, most of them depicting their country’s traditional clothing.
Statement of Attorney General Eric Holder on the <br /> Nomination of Jim Comey as Director of the Federal Bureau of InvestigationRead the Press Release
Attorney General Eric Holder today issued the following statement regarding President Obama’s nomination of Jim Comey to be Director of the FBI:
“As an extraordinarily dedicated public servant, a talented national security and law enforcement executive, and a principled leader with extensive experience in government and the private sector, Jim Comey is uniquely qualified to serve as the next Director of the Federal Bureau of Investigation.
“I’ve known Jim for almost 20 years, and have always found him to be a person willing to try new methods and innovative tools – while adhering to our most treasured values – in keeping the American people safe. He is a seasoned prosecutor – and former United States Attorney – whose impeccable judgment has set him apart from his peers. He is a proven leader – and former Deputy Attorney General – whose formidable intellect, indisputable integrity, and unwavering dedication to the rule of law will undoubtedly serve him well as FBI Director.
"Above all, Jim is, and has always been, a faithful servant of the American people. I am confident that he will be a superb FBI Director, providing the strong and steady leadership that the Bureau’s extraordinary men and women deserve. I applaud the President’s decision to nominate Jim Comey and I look forward to working closely with him, upon his confirmation, to continue protecting the American people from financial fraud, violent crime and terrorism.”
Former Workers at Los Alamos National Laboratory<br /> Plead Guilty to Atomic Energy Act ViolationsRead the Press Release
The Justice Department today announced that a scientist and his wife, who both previously worked as contractors at the Los Alamos National Laboratory (LANL) in New Mexico, have pleaded guilty to charges under the Atomic Energy Act and other charges relating to their communication of classified nuclear weapons data to a person they believed to be a Venezuelan government official.
The guilty pleas, which were entered today by Pedro Leonardo Mascheroni, 77, a naturalized U.S. citizen from Argentina, and Marjorie Roxby Mascheroni, 70, a U.S. citizen, in the U.S. District Court for the District of New Mexico, were announced by John Carlin, Acting Assistant Attorney General for National Security; Kenneth J. Gonzales, U.S. Attorney for the District of New Mexico and Carol K.O. Lee, Special Agent in Charge of the FBI’s Albuquerque Division.
According to court filings, Mascheroni, a Ph.D. physicist, worked as a scientist at LANL from 1979 to 1988 and held a security clearance that allowed him access to certain classified information, including “Restricted Data.” Roxby Mascheroni worked at LANL between 1981 and 2010, where her duties included technical writing and editing. She also held a security clearance at LANL that allowed her access to certain classified information, including “Restricted Data.” As defined under the Atomic Energy Act, “Restricted Data” is classified information concerning the design, manufacture or use of atomic weapons; the production of special nuclear material; or the use of special nuclear material in the production of energy.
Mascheroni and Roxby Mascheroni were indicted in Sept. 2010, and charged with conspiracy to communicate and communicating Restricted Data to an individual with the intent to secure to an advantage to a foreign nation. The indictment also charged the couple with conspiracy to convey and conveying classified Restricted Data. The indictment also charged Mascheroni with concealing and retaining U.S. records with the intent to convert them to his own use and gain, and both defendants with making false statements.
Today, Mascheroni pleaded guilty to Counts 7 and 8 of the indictment, charging him with conversion of government property, and Counts 10 through 15, charging him with making false statements. Mascheroni also pleaded guilty to an information charging him with two counts of communication of Restricted Data and one count of retention of national defense information. Mascheroni admitted that in Nov. 2008 and July 2009, he unlawfully communicated Restricted Data to another individual with reason to believe that the data would be utilized to secure an advantage to Venezuela. He also admitted unlawfully converting Department of Energy information to his own use and selling the information in Nov. 2008 and July 2009, and failing to deliver classified information relating to the United States’ national defense to appropriate authorities and instead unlawfully retaining the information in his home. Finally, Mascheroni admitted making materially false statements to the FBI when he was interviewed in Oct. 2009.
Roxby Mascheroni pleaded guilty to Count 6 of the indictment, charging her with conspiracy, and Counts 16 through 22, charging her with making false statements. She also pleaded guilty to an information charging her with conspiracy to communicate Restricted Data. In entering her guilty plea, Roxby Mascheroni admitted that between Oct. 2007 and Oct. 2009, she conspired with Mascheroni to convey Restricted Data belonging to the United States to another person with reason to believe that the information would be used to secure an advantage to Venezuela. She also admitted making materially false statements to the FBI when she was interviewed in Oct. 2009.
Under the terms of the plea agreements, which are subject to court approval, Mascheroni will be sentenced to a prison term within the range of 24 to 66 months followed by ten years of supervised release, and Roxby Mascheroni will be sentenced to a prison term of 12 to 24 months followed by nine years of supervised release. The couple’s sentencing hearings have yet to be scheduled.
The indictment in this case did not allege that the government of Venezuela or anyone acting on its behalf sought or was passed any classified information, nor did it charge any Venezuelan government officials or anyone acting on their behalf with wrongdoing. The indictment also did not allege any wrongdoing by other individuals working at LANL.This investigation was conducted by the FBI’s Albuquerque Division with assistance from the Department of Energy and LANL. The prosecution is being handled by Assistant U.S. Attorneys Fred J. Federici, Dean Tuckman and Holland S. Kastrin of the U.S. Attorney’s Office for the District of New Mexico, and Trial Attorneys Kathleen Kedian and David Recker of the Counterespionage Section of the Justice Department’s National Security Division.
Former Security Contractor CEO Sentenced for Masterminding $31 Million Disadvantaged Small Business Fraud SchemeRead the Press Release
The former chief executive officer of a Virginia-based security contracting firm was sentenced in the Eastern District of Virginia to 72 months in prison for creating a front company to obtain more than $31 million intended for disadvantaged small businesses and for bribing the former regional director for the National Capital Region of the Federal Protective Service (FPS) as part of the scheme. The front company obtained the contracts through the Small Business Administration’s (SBA) Section 8(a) program, which allows qualified small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; National Aeronautics and Space Administration (NASA) Inspector General Paul K. Martin; SBA Inspector General Peggy E. Gustafson; Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office Robert E. Craig; General Services Administration (GSA) Inspector General Brian D. Miller; and Department of Homeland Security (DHS) Deputy Inspector General Charles K. Edwards made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
“Keith Hedman used his expertise gleaned from decades as a government contractor to cheat the system and steal tens of millions from minority-owned small business owners,” said Acting Assistant Attorney General Raman. “Today’s sentence shows that those who resort to deceit and bribery to secure federal contracts will be caught and held accountable.”
“Keith Hedman tried to game the system and take advantage of a government program designed to help minority-owned small businesses,” said U.S. Attorney Neil H. MacBride. “He committed fraud, he undermined the trust of the U.S. government and this type of conduct will not be tolerated. My office is committed to prosecuting those who cheat the government to the fullest extent of the law.”
“I commend the outstanding efforts of our agents and the other law enforcement agencies involved in this case in protecting the integrity of the Federal Government’s procurement program and taxpayer dollars” said NASA Inspector General Paul K. Martin.Keith Hedman, 53, of Arlington, Va., was sentenced today after pleading guilty to major government fraud and conspiracy to commit bribery on March 13, 2013. Hedman was also ordered to forfeit approximately $6.1 million.
According to court documents, in or about 2011 Hedman formed Company A, which was approved to participate in the 8(a) program based on the 8(a) eligibility of its listed president and CEO, an African-American female. When the listed president and CEO left Company A in 2003, Hedman became its sole owner, and the company was no longer 8(a)-eligible.
In 2003, Hedman created Company B, another Arlington-based security contractor, to ensure that he could continue to gain access to 8(a) contracting preferences for which Company A was no longer qualified. Prior to applying for Company B’s 8(a) status, Hedman selected an employee, Dawn Hamilton, 48, of Brownsville, Md., to serve as a figurehead owner based on her Portuguese heritage and history of social disadvantage. In reality, the new company was managed by Hedman and Company A senior leadership in violation of 8(a) rules and regulations. To deceive the SBA, the co-conspirators falsely claimed that Hamilton formed and founded the company and that she was the only member of the company’s management. Based on those misrepresentations, Company B obtained 8(a) status in 2004.
From 2004 through February 2012, Hedman – not Hamilton – impermissibly exercised ultimate decision-making authority and control over Company B by directing its finances, allocation of personnel, and government contracting activities. Hedman nonetheless maintained the impression that Hamilton was leading the company, including through forgeries of signatures of Hamilton to documents she had not seen or drafted. Hedman also retained ultimate control over the shell business’s bank accounts throughout its existence. In 2010, Hedman withdrew $1 million in cash from Company B’s accounts and gave the funds in cash to Hamilton and three other conspirators. In 2011, Hedman approached Hamilton’s brother about starting another shell company to continue the scheme. The trio submitted another fraudulent application to the SBA, but it was rejected.
Later in 2011, Hedman agreed to pay Derek Matthews, 47, of Harwood, Md., the former FPS Regional Director for the National Capital Region, $50,000 and a percentage of new business in exchange for Matthews helping Company B obtain contracts. During the bribery scheme, Matthews served as FPS Deputy Assistant Director for Operations, a law enforcement position in which he had daily oversight of physical security programs and oversight of approximately 13,000 FPS officers at approximately 9,000 federal buildings.
In total, the scheme netted government contracts valued at more than $153 million, from which Company B obtained more than $31 million in contract payments. The various conspirators netted more than $6.1 million that they were not entitled to receive from those payments. Seven other defendants have pleaded guilty in the scheme.
This case is being investigated by NASA Office of the Inspector General (OIG), the SBA -OIG, DCIS-OIG, GSA-OIG, and DHS-OIG, with assistance from the Defense Contract Audit Agency. Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, are prosecuting the case on behalf of the United States.
Former Enron CEO Jeffrey Skilling <br /> Resentenced to 168 Months for Fraud, Conspiracy ChargesRead the Press Release
Former Enron Chief Executive Officer Jeffrey K. Skilling has been resentenced to 168 months in prison on conspiracy, securities fraud, and other charges related to the collapse of Enron Corporation. In addition to the prison sentence, Skilling, 59, was ordered to forfeit approximately $42 million to be applied toward restitution for the victims of the fraud at Enron.
Acting Assistant Attorney General Mythili Raman of the Criminal Division made the announcement after Skilling was resentenced before U.S. District Judge Sim Lake at the U.S. District Court in Houston.
“The sentence handed down today ends years of litigation, imposes significant punishment upon the defendant and precludes him from ever challenging his conviction or sentence,” said Acting Assistant Attorney General Raman. “With today’s court action, victims of Skilling’s crimes will finally receive more than $40 million that he owes them. We appreciate the hard work and dedication of all the prosecutors and agents who have handled this important case from the initial investigation to today’s successful conclusion.”
A federal jury found Skilling guilty in Houston on May 25, 2006, of one count of conspiracy, 12 counts of securities fraud, one count of insider trading, and five counts of making false statements to auditors. Judge Lake initially sentenced Skilling to serve 292 months of imprisonment on Oct. 23, 2006. On Jan. 6, 2009, the United States Court of Appeals for the Fifth Circuit affirmed Skilling’s convictions but vacated his sentence and remanded for a new sentencing hearing. The court of appeals concluded that the district court erred by increasing Skilling’s sentence for having substantially jeopardized the safety and soundness of a financial institution – that is, Enron’s pension plan. As a result, the court of appeals effectively reduced Skilling’s guidelines range of imprisonment by approximately nine years.
In May 2013, the government and Skilling entered into an agreement to recommend jointly to the district court a sentence between 168 months and 210 months of imprisonment, a limited reduction in Skilling’s guidelines range of imprisonment in exchange for Skilling agreeing, among other things, not to contest the original forfeiture and restitution order and to waive all appeals and other litigation. As court documents make clear, the government entered into this agreement, in part, to bring finality to Skilling’s convictions and thereby allow the government to promptly seek the distribution of approximately $42 million to victims of Skilling’s crimes.
Skilling’s convictions stemmed from a scheme to deceive the investing public, the U.S. Securities and Exchange Commission, and others about the true performance of Enron’s businesses. The scheme was designed to make it appear that Enron was growing at a healthy and predictable rate, consistent with analysts’ published expectations, that Enron did not have significant write-offs or debt and was worthy of an investment-grade credit rating, that Enron was comprised of a number of successful business units, and that the company had an appropriate cash flow. This scheme had the effect of artificially inflating Enron’s stock price, which increased from approximately $30 per share in early 1998 to over $80 per share in January 2001, and artificially stemming the decline of the stock during the first three quarters of 2001.
The fraud scheme eventually unraveled and Enron filed for bankruptcy in December 2001, making its stock virtually worthless.
The investigation into Enron’s collapse was conducted by the Enron Task Force, a team of federal prosecutors supervised by the Justice Department’s Criminal Division, and Special Agents from the FBI and IRS Criminal Investigation. The Task Force received considerable assistance from the Securities and Exchange Commission. The resentencing hearing was handled by Patrick Stokes, Albert Stieglitz and Robert Heberle of the Criminal Division’s Fraud Section.
Alabama Woman Pleads Guilty to Conspiracy in Tax Refund Identity Theft SchemeRead the Press Release
Scottie Alice Johnson of Montgomery County, Ala., pleaded guilty to one count of conspiracy to defraud the United States for her role in a Stolen Identity Refund Fraud (SIRF) scheme, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to court documents, Johnson conspired with Barbara Murry, Veronica Temple and Yolanda Moses to receive fraudulently obtained tax refunds. Yolanda Moses created a tax-preparation business called B & B Tax Service, which was located in the same building as co-defendant Barbara Murry’s hair weaving shop, called B & B Weaving. The conspirators obtained stolen identities from multiple sources and recruited individuals, including Scottie Alice Johnson, to deposit fraudulently obtained tax refunds into their respective bank accounts. Yolanda Moses and Veronica Temple filed false tax returns using the stolen identities and directed the refunds into bank accounts they or their co-conspirators controlled. Between January 2006 and April 2012, Barbara Murry, Veronica Temple and Yolanda Moses filed over 900 false tax returns with the IRS and fraudulently claimed in excess of $1.7 million. Scottie Alice Johnson’s bank account received $140,505.22 in refunds proceeds. Johnson also used her son’s bank account in the scheme to receive $22,650 in tax refunds.
Sentencing has not yet been scheduled. Johnson faces a maximum sentence of five years in prison, three years of supervised release, restitution, and a maximum fine of $250,000, or twice the loss caused by the offense. Barbara Murry, Veronica Temple and Yolanda Moses earlier pleaded guilty to various charges and each was sentenced to 57 months in prison.Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, commended the efforts of special agents of IRS - Criminal Investigation, who investigated the case, Tax Division Trial Attorneys Jason H. Poole and Michael Boteler and Assistant United States Attorney Todd Brown, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
United Technologies Corporation Liable for over $473 Million <br /> for Inflating Prices on Aircraft Engines Sold to Air ForceRead the Press Release
The U.S. District Court for the Southern District of Ohio found United Technologies Corporation liable for over $473 million in damages and penalties arising out of a contract to provide the Air Force with fighter aircraft engines for F-15 and F-16 aircraft between 1985 and 1990, the Justice Department announced today. United Technologies, which is based in Connecticut, provides a broad range of high-technology products and services to the global aerospace and building systems industries.
“The department will relentlessly pursue justice against those who knowingly submit false claims to the government and abuse the public contracting process,” said Stuart Delery, Acting Assistant Attorney General for the Civil Division. “It is vital that companies who do business with the government provide full and accurate information, and if they do not, they will pay the consequences.”
The government alleged that UTC’s proposed prices for the engine contract misrepresented how UTC calculated those prices, resulting in the government paying hundreds of millions more than it otherwise would have paid for the engines. Specifically, the government alleged that UTC failed to include in its price proposal historical discounts that it received from suppliers, and instead knowingly used outdated information that excluded such discounts.
The government filed suit against UTC in 1999 under the False Claims Act and the common law, and those claims were tried, without a jury, in 2004. An initial decision by the district court in 2008 found UTC liable under the False Claims Act, but did not award any damages. The district court also dismissed the government’s common law claims. That decision was appealed by both the government and UTC. In 2010, the Court of Appeals for the Sixth Circuit affirmed the district court’s finding that UTC was liable under the False Claims Act, but reversed and remanded the case to the district court to recalculate the government’s damages and to reconsider the government’s common law claims.
In yesterday’s ruling, the district court awarded the government False Claims Act damages and penalties of $364 million, which is the highest recovery obtained by the government in a case tried under the Act. The court also awarded an additional $109 million in damages on the government’s common law claims. With the addition of prejudgment interest on the latter claims, which the court has yet to calculate, the government anticipates that the total judgment against United Technologies could be well in excess of half a billion dollars.
This case is being handled by the Civil Division of the Department of Justice. The lawsuit is captioned United States of America v. United Technologies Corp., No. 3:99-cv-093 (S.D. Ohio).The Department of Justice Files Suit Against Louisiana Pharmaceutical Company for Distributing Unapproved and Misbranded Prescription and Over-the-counter DrugsRead the Press Release
Acting Assistant Attorney General Stuart F. Delery announced today that the Department of Justice, on behalf of the Food and Drug Administration (FDA), has filed suit in the U.S. District Court for the Western District of Louisiana against Sage Pharmaceuticals, Inc. (Sage), its president Dr. Jivn-Ren Chen, and its Director of Corporate Quality, Charles L. Thomas, all of Shreveport, Louisiana. According to the Complaint, the defendants violated the Federal Food, Drug, and Cosmetic Act (FDCA) by manufacturing and distributing unapproved and misbranded drug products. Under the FDCA, before a company can sell a new drug product to consumers, it must submit and receive approval of a new drug application from the FDA. The purpose of this approval process is to ensure that drugs manufactured and distributed to consumers are safe and effective for their intended uses. Furthermore, the FDA requires all drug labeling to have adequate directions for use.
“Today’s action furthers the FDA’s mission of ensuring that all drugs sold to the public are safe and effective, and those companies that undermine this mission will be held accountable,” said Stuart Delery, Acting Assistant Attorney General for the Civil Division.U.S. Attorney for the Western District of Louisiana Stephanie A. Finley said, “This lawsuit demonstrates that this office will make every effort to protect public health by filing enforcement actions against companies that are identified as violating federal law.”
This is the second injunctive case that the government has brought against Sage alleging the distribution of unapproved new drugs. In 2000, the government obtained an injunction against the company banning the manufacture and distribution of two unapproved new drugs. Since that time, FDA inspections revealed that defendants continue to manufacture and distribute other drug products—including prescription pain relievers, over-the-counter (OTC) cough and cold remedies, and OTC wound cleansers—without first obtaining the requisite FDA approvals. As a result, the defendants’ products are unapproved new drugs and misbranded drugs under the FDCA, and potentially unsafe and ineffective.
Despite numerous warnings from FDA, the defendants have failed to bring their operations into compliance with the law. The Justice Department will seek a permanent injunction requiring the defendants to cease all receiving, processing, manufacturing, preparing, packaging, labeling, holding, and distributing activities until they comply with applicable FDA regulations.
The FDA referred this matter to the Department of Justice. The Consumer Protection Branch of the Justice Department’s Civil Division together with the U.S. Attorney’s Office for the Western District of Louisiana brought this case on behalf of the United States.Statement of the Department of Justice Antitrust Division on <br /> Its Decision to Close Its Investigation of Delta Air Lines’ <br /> Acquisition of an Equity Interest in Virgin Atlantic AirwaysRead the Press Release
The Department of Justice’s Antitrust Division issued the following statement today after announcing the closing of its investigation into Delta Air Lines’ proposed equity investment in Virgin Atlantic Airways Ltd. and their related trans-Atlantic joint venture:
“After a thorough investigation of the competitive effects of the proposed equity investment and joint venture, the Antitrust Division concluded that the facts and circumstances did not warrant further investigation or action.
“In December 2012, Delta Air Lines and Virgin Atlantic reached an agreement to establish a joint venture on flights between North America and the United Kingdom. At the same time, Delta entered an agreement to acquire the 49 percent stake in Virgin Atlantic currently held by Singapore Airlines for $360 million. Virgin Group will retain the majority 51 percent stake.
“The proposed equity investment and joint venture also were subject to review by the European Commission. The division and the European Commission cooperated closely throughout the course of their respective investigations, with frequent contact between the agencies. This cooperation, facilitated by the parties, made for a more efficient review process.
“Delta and Virgin Atlantic also have filed an application with the U.S. Department of Transportation seeking antitrust immunity for their joint venture. The division will continue to consult, as appropriate, with the Department of Transportation as it reviews the request for immunity.”
Macandrews & Forbes Holdings Inc. to Pay $720,000 Civil Penalty for Violating Antitrust Premerger Notification RequirementsRead the Press Release
MacAndrews & Forbes Holdings Inc. will pay a $720,000 civil penalty to settle charges that the company violated premerger reporting and waiting requirements when it acquired voting securities of Scientific Games Corporation, the Department of Justice announced today.
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission, filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against MacAndrews & Forbes for violating the notification requirements of the Hart-Scott-Rodino (HSR) Act of 1976. At the same time, the department filed a proposed settlement that, if approved by the court, will settle the charges.
MacAndrews & Forbes is a holding company based in New York and is wholly-owned by Ronald O. Perelman. Scientific Games is a New York-based provider of lottery and gaming services.
According to the complaint, MacAndrews & Forbes failed to comply with the antitrust premerger notification requirements of the HSR Act before acquiring voting securities of Scientific Games in June 2012. As a result of these acquisitions, MacAndrews & Forbes held Scientific Games voting securities in excess of $68.2 million, the HSR reporting threshold then in effect. Although certain stock acquisitions relating to a previous HSR Act notification are exempt from additional notice and waiting requirements, MacAndrews & Forbes’ June 2012 acquisitions of Scientific Games voting securities fell outside of the five-year time period for that exemption.
The Hart-Scott-Rodino Act of 1976, an amendment to the Clayton Act, imposes notification and waiting period requirements on individuals and companies over a certain size before they consummate acquisitions resulting in holding stock or assets above a certain value, which was $68.2 million in 2012 and is currently $70.9 million.
Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the Department of Justice. For a party in violation of the HSR Act the maximum civil penalty is $16,000 a day.
Justice Department Settles Complaint Against Vermont Dairy Farm for Improper Medication PracticesRead the Press Release
The United States has filed suit in the U.S. District Court for Vermont against Lawson Farm, Robert Lawson, George R. Lawson, and Lonnie A. Griffin to block them from violating the Food, Drug and Cosmetic Act (FDCA) in connection with their alleged unlawful use of new animal drugs in cows slaughtered for food. The Justice Department filed the suit on behalf of the Food and Drug Administration (FDA).
Defendants Lawson Farm, Robert Lawson, and George R. Lawson have agreed to settle the litigation and be bound by a Consent Decree of Permanent Injunction that enjoins them from committing violations of the FDCA. The proposed consent decree has been filed with the court and is awaiting judicial approval. The lawsuit continues against defendant Lonnie Griffin.
“When farms fail to maintain appropriate controls concerning the medication of food-producing animals, they jeopardize the public health,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “We are committed to making sure food producers have put in place the procedures and documentation necessary to help ensure that consumers receive safe foods for their family table.”
The government’s action results from a series of inspections of the Irasburg, Vermont farm, which revealed, according to the FDA, that the defendants failed to maintain complete treatment records for their animals and that they sold animals for slaughter containing excessive and illegal drug residues in its edible tissues. The complaint also alleges that the defendants have dispensed prescription new animal drugs on more than one occasion without a lawful order from a veterinarian.
The complaint states that excess drug residues in animal tissues can harm consumers by causing allergic reactions and by contributing to the spread of antibiotic-resistant bacteria. Both FDA and the U.S. Department of Agriculture (USDA) have warned the defendants that their conduct violates the FDCA. Nonetheless, according to the complaint, the most recent FDA inspection, concluded in August 2012, documented the continuing nature of the defendants’ violations, and established their responsibility for illegal drug residues found in edible tissues sampled by USDA.
The government’s complaint asserts that the defendants have introduced adulterated food into interstate commerce, caused new animal drugs to become misbranded and adulterated while held for sale after shipment in interstate commerce, and failed to comply with statutory and regulatory requirements concerning the extra-label use of new animal drugs.
The FDA referred the case to the Department of Justice. The matter was filed by the Department of Justice’s Consumer Protection Branch, the U.S. Attorney’s Office for the District of Vermont, and FDA’s Office of the General Counsel.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
James D. Acfalle Sentenced to 100 Months ImprisonmentRead 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 JAMES D. ACFALLE, age 39, was sentenced today, in the District Court of Guam by Chief Judge Frances Tydingco-Gatewood, to 100 months (8 years and four months) imprisonment with credit for time served and five years supervised release upon his release from prison, for the offense of Conspiracy to Distribute Methamphetamine (Ice).
ACFALLE along with defendant Roland Nauta were charged with conspiracy to distribute methamphetamine. The ice was sent through the U.S. Postal Service. Dogs from Guam Customs and Quarantine alerted on a package sent to Nauta through the U.S. Postal Service. Roland Nauta, age 39, was sentenced on June 7, 2012 to 157 months (13 years and one month) imprisonment with credit for time served and five years supervised release, for the offenses of Conspiracy to Distribute Methamphetamine and Using, Carrying or Possessing a Firearm During and In Relation to a Drug Trafficking Crime.Assistant United States Attorney Clyde Lemons prosecuted the case. The investigation was conducted by Guam Customs and Quarantine, U.S. Postal Service Inspectors, DEA, Superior Court of Guam Probation Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Department of Homeland Security, Homeland Security Investigations.
Former Lt. Governor’s Sentence Increased to 108 MonthsRead the Press Release
Saipan, MP – United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that on June 12, 2013, following a successful appeal by the United States, Timothy P. Villagomez, former Lieutenant Governor of the Commonwealth of the Northern Mariana Islands, was re-sentenced to a term of imprisonment of 108 months on corruption charges. Mr. Villagomez had initially been sentenced to 87 months in prison.
The bribery and fraud charges related to the purchase by the Commonwealth Utilities Corporation of a chemical -- at a 400% mark-up -- from companies owned by Mr. Villagomez’s sister and brother-in- law, co-defendants James and Joaquina Santos. The scheme resulted in a loss of $346,125 and extended over ten years, beginning when Mr. Villagomez was executive director of the utility, and lasting through
2007, when he was Lieutenant Governor of the CNMI, exercising de facto control over the utility. The sentence is the result of a guilty verdict returned on April 24, 2009, after a 19-day jury trial. Mr. Villagomez received an original sentence of 87 months. He unsuccessfully appealed his conviction. The United States cross-appealed, arguing that his sentencing range should be enhanced because the offense involved corruption by an elected public official or other public official in a high-level decision-making position. The Court of Appeals agreed and remanded the case to the district court for re- sentencing. On remand the district court applied the enhancement and increased Mr. Villagomez’s sentence to 108 months. Upon completion of his term of imprisonment, the defendant will be subject to a three-year term of supervised release.Mr. Villagomez, along with his co-defendants, is jointly and severally liable for restitution in the amount of $346,125, which is to be paid to the Commonwealth Utilities Corporation. The case was prosecuted by Assistant U.S. Attorney Eric O’Malley and First Assistant U.S. Attorney Jeff Strand and investigated by the Federal Bureau of Investigation. The CNMI Office of the Public Auditor assisted in the investigation. Assistant U.S. Attorney Ross Naughton handled the re-sentencing.
Us Seeks to Shut Down Texas Tax Preparer Whose Customers Work Overseas for Defense ContractorsRead the Press Release
WASHINGTON – The United States sued a Southlake, Texas woman last night, seeking to bar her from preparing federal tax returns for others, the Justice Department announced today. The civil injunction suit was filed against Karena Mondrianh in U.S. District Court for the Northern District of Texas.
The government complaint alleges that Mondrianh prepares fraudulent tax returns that understate customers' taxable income by inventing – sometimes without the customer's knowledge – false business expenses and by falsely claiming that a customer's income is exempt from tax. The suit alleges that most of Mondrianh's customers work overseas for defense contractors.
The complaint further alleges that Mondrianh has provided false information to the Internal Revenue Service (IRS) in improper attempts to delay IRS audits of customers. She allegedly urged one customer to lie to an IRS agent in order to prevent an IRS audit.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2013. In the past decade, the Justice Department's Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax.
Related Documents:
United States v. Karena Mondrianh, etc.
Complaint for Permanent Injunction
(PDF document)Portable Document Format (PDF) files may be viewed with a free copy of Adobe Acrobat Reader
Accessibility InformationU.S. Seeks to Shut Down Texas Tax Preparer Whose Customers Work Overseas for Defense ContractorsRead the Press Release
The United States sued a Southlake, Texas woman last night, seeking to bar her from preparing federal tax returns for others, the Justice Department announced today. The civil injunction suit was filed against Karena Mondrianh in U.S. District Court for the Northern District of Texas.
The government complaint alleges that Mondrianh prepares fraudulent tax returns that understate customers’ taxable income by inventing – sometimes without the customer’s knowledge – false business expenses and by falsely claiming that a customer’s income is exempt from tax. The suit alleges that most of Mondrianh’s customers work overseas for defense contractors.
The complaint further alleges that Mondrianh has provided false information to the Internal Revenue Service (IRS) in improper attempts to delay IRS audits of customers. She allegedly urged one customer to lie to an IRS agent in order to prevent an IRS audit.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2013. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax.
Settlement with Ash Grove Cement Company to Reduce Thousands of Tons of Air EmissionsRead the Press Release
Ash Grove Cement Company has agreed to pay a $2.5 million penalty and invest approximately $30 million in pollution control technology at its nine Portland cement manufacturing plants to resolve alleged violations of the Clean Air Act, announced the Department of Justice and the U.S. Environmental Protection Agency (EPA).
Today’s agreement will reduce more than 17,000 tons of harmful nitrogen oxides (NOx) and sulfur dioxide (SO2) pollution each year across plants located in Foreman, Ark.; Inkom, Idaho; Chanute, Kan.; Clancy, Mont.; Louisville, Neb.; Durkee, Ore.; Leamington, Utah; Seattle, Wash.; and Midlothian, Texas.
“This significant settlement will achieve substantial reductions in air pollution from Ash Grove’s Portland cement manufacturing facilities and benefit the health of communities across the nation,” said Acting Assistant Attorney General Robert G. Dreher. “The agreement reflects the Justice Department’s ongoing commitment to protecting public health and the environment through enforcement of the nation’s Clean Air Act.”
“Today’s settlement will reduce air pollution that can harm human health and contribute to acid rain, haze, and smog,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “The new stringent limits on emissions will lead to less pollution and better air quality for communities across the country.”
In addition, Ash Grove has agreed to spend $750,000 to mitigate the effects of past excess emissions from several of its facilities.
The settlement requires Ash Grove to meet stringent emission limits and install and continuously operate modern technology to reduce NOx, SO2, and particulate matter (PM). Ash Grove is required to reduce NOx emissions at nine kilns, some of which will have the lowest emission limits of any retrofit control system in the country. In addition, modern pollution controls must be installed on every kiln to reduce PM emissions, and on several kilns to reduce SO2 emissions.
In addition, at its Texas facility, Ash Grove will shut down two older, inefficient kilns, while a third will be replaced with a cleaner, newly reconstructed kiln.
Ash Grove will also spend $750,000 on a project to replace old diesel truck engines at its facilities in Kansas, Arkansas, and Texas, which are estimated to reduce smog-forming nitrogen oxides by approximately 27 tons per year.
The settlement is part of EPA’s national enforcement initiative to control harmful air pollution from the largest sources of emissions, including portland cement manufacturing facilities. This is also the first settlement with a cement manufacturer that requires injunctive relief and emission limits for PM. SO2 and NOx, two key pollutants emitted from cement plants, can harm human health and are significant contributors to acid rain, smog, and haze. These pollutants are converted in the air into fine particles of particulate matter that can cause severe respiratory and cardiovascular impacts, and premature death.
Eight states and one local agency have joined the United States in the settlement, including: Arkansas, Idaho, Kansas, Montana, Nebraska, Oregon, Utah, Washington, and the Puget Sound Clean Air Agency.
The settlement was lodged today in the U.S. District Court for the District of Kansas and
is subject to a 30-day public comment period and final court approval. It will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html.More information about this settlement:
www.epa.gov/enforcement/air/cases/ashgrove.htmlMore about EPA’s National Enforcement Initiatives: http://www.epa.gov/compliance/data/planning/initiatives/index.html
New York Landowner and New Jersey Solid Waste Company Sentenced for Illegally Dumping in Upstate, New YorkRead the Press Release
Cross Nicastro, Dominick Mazza, and his company, Mazza & Sons Inc., were sentenced today and yesterday in federal court in Utica, N.Y., for conspiring to violate the Clean Water Act, Superfund statute, and to defraud the United States by illegally dumping thousands of tons of asbestos-contaminated construction debris on a 28-acre piece of property on the Mohawk River in upstate New York. In addition, the Mazza defendants were also sentenced on charges of obstructing justice and making false statements to law enforcement.
U.S. District Judge David N. Hurd sentenced Dominick Mazza to 51 months in prison to be followed by three years of supervised release, to pay a $75,000 criminal fine and $492,000 in restitution. In addition, Judge Hurd sentenced Mazza & Sons Inc., to pay a $100,000 criminal fine and $494,000 in restitution and cleanup costs, and imposed five years corporate probation. The court also ordered that Mazza & Sons’ recycling facility fund and implement an environmental compliance plan to prevent future environmental violations at their Tinton Falls, N.J., operation. The compliance plan is to be administered by a third party auditor. On Tuesday, Cross Nicastro was sentenced to 33 months in prison and three years of supervised release and to pay $492,494 in restitution and a $25,000 criminal fine.
The defendants were convicted in October 2012 after a three week trial in Utica. According to the trial evidence, the defendants conspired to fill in the entire property over the course of five years with pulverized construction and demolition debris that was processed at New Jersey solid waste management facilities (to include Mazza & Sons Inc.) and then transported to Cross Nicastro’s property in Frankfort, N.Y. The plot was uncovered by law enforcement just months after the defendants began the operation, having already dumped at least 400 truckloads of debris at the site. Much of the material that was dumped was placed in and around waters of the United States and some of the material was found to be contaminated with asbestos. The conspirators then concealed the illegal dumping by fabricating a New York State Department of Environmental Conservation (DEC) permit and forged the name of a DEC official on the fraudulent permit.
“Mazza and his co-conspirators are being held justly accountable for egregious environmental crimes, for putting the public’s health at risk, and for lying to federal investigators,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Had law enforcement not stopped their scheme, these conspirators could have dumped thousands of tractor trailer loads of debris in an area that contained wetlands. These laws are intended to protect the environment and the public’s health from exposure to toxic materials, and as this case clearly demonstrates, we will vigorously prosecute those who violate them.”
“The closure of this case demonstrates that illegal dumping and fraud are serious offenses that will not be tolerated in New York State,” said New York State Department of Environmental Conservation Commissioner Joe Martens. “DEC is proud of the collaborative work of our investigators to halt these illegal practices and bring the perpetrators to justice, and will continue to enforce state and federal laws that protect our environment and the health of New Yorkers.”
“The defendants illegally dumped thousands of tons of asbestos-contaminated construction debris in and around waterways in upstate New York,” said Cynthia Giles, Assistant Administrator of EPA’s Office of Enforcement and Compliance Assurance. “This case should serve as notice that EPA and its partner agencies will prosecute people who 'cut corners' by avoiding the costs of handling or disposing of asbestos properly.”
This case was investigated by Criminal Investigators with the New York State Environmental Conservation Police, Bureau of Environmental Crimes, Special Agents from the EPA's Criminal Investigation Division and the Internal Revenue Service, investigators from the New Jersey State Police Office of Business Integrity Unit, the New Jersey Department of Environmental Protection, and the Ohio Department of Environmental Protection The case is being prosecuted by Assistant U.S. Attorney Craig A. Benedict of the Northern District of New York, and Trial Attorneys Todd W. Gleason and Gary Donner of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
Four Kentucky Individuals Sentenced for Roles in Kidapping and Assaulting a Harlan County ManRead the Press Release
Four Harlan County, Ky., relatives were sentenced today by U.S. District Judge Gregory Van Tatenhove for their roles in kidnapping and assaulting Kevin Pennington, a gay man. David Jason Jenkins, known as Jason, 39, received 30 years in prison, Anthony Ray Jenkins, 22, 17 years in prison, Mable Ashley Jenkins, known as Ashley, 20, 100 months in prison and Alexis LeeAnn Jenkins, 20, 8 years in prison.
In October 2012, a federal jury in London, Ky., convicted Jason Jenkins and Anthony Jenkins of kidnapping and conspiracy charges related to the April 4, 2011 assault of Pennington. The jury acquitted the men of violating the sexual orientation provision of the Matthew Shepard James Byrd Jr. Hate Crimes Prevention Act. Testimony at trial established that the two men, who are cousins, carried out the crime with help from their relatives - Ashley Jenkins and Alexis Jenkins, who both pleaded guilty prior to trial to aiding and abetting kidnapping and aiding and abetting the hate crime assault against Pennington. Both women testified against the defendants. The women’s guilty pleas to federal hate crime charges constituted the first federal convictions in the nation under the sexual orientation provision of the Matthew Shepard James Byrd Jr. Hate Crimes Prevention Act.
The evidence at trial established that the four relatives planned in advance of the assault to kidnap Pennington, take him to a remote location and beat him to death. After luring Pennington by false pretenses into a truck driven by Anthony Jenkins, the group drove Pennington up a deserted mountain road into Kingdom Come State Park, where they dragged Pennington into the road and beat him.
The evidence also established that Pennington escaped while the two men were searching in the back of the truck for a tire iron to use to kill Pennington. Pennington ran off the road and threw himself over a ledge, where he hid behind a rock until the group finally gave up searching for him and drove away. Pennington staggered part-way down the mountain, where he found a ranger shack, broke a window and called 911.
Ashley and Alexis Jenkins both testified that they and the men had agreed in advance to lure Pennington into the truck, drive him to a deserted area and beat him because of his sexual orientation. The women also testified that during the beating, they all used anti-gay slurs and that the group intended to kill Pennington.“As the court’s sentence shows, this was a vicious criminal act. The Department of Justice will continue to use every tool in our arsenal to vindicate the rights of victims of violent crimes,” said Roy L. Austin Jr., Deputy Assistant Attorney General, Civil Rights Division. “The Department will also continue to use the Shepard Byrd Act to vigorously investigate hate crimes allegations and work with our state and local law enforcement partners in their efforts to identify these crimes.”
“Justice imposes a heavy price on those who engage in the sort of gratuitous violence that led to this prosecution,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “The defendants’ crimes were brutal and cruel. They fully deserve the sentences delivered by the Court. The message is clear-our society will not tolerate such horrific conduct. The team of dedicated professionals who investigated and successfully prosecuted this case are to be congratulated for their fine work. We also thank our state and local partners who played an important role in achieving a just result in this matter.”
“We are pleased that this matter has been successfully resolved and that justice has been done,” said Perrye K. Turner, Special Agent in Charge of the FBI in Kentucky. “We feel the length of the sentences sufficiently reflects the seriousness of these violent acts”
This case was investigated by Special Agents Anthony Sankey and Mike Brown with the FBI and was prosecuted by Assistant U.S. Attorney Hydee Hawkins from the U.S. Attorney’s Office for the Eastern District of Kentucky and Trial Attorney Angie Cha from the Civil Rights Division.
Northern California Real Estate Investor Agrees to Plead Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor has agreed to plead guilty for his role 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 the U.S. District Court for the Northern District of California in San Francisco against Robert Williams of Atherton, Calif. Williams is the 31st individual to plead guilty or agree 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, Williams conspired with others not to bid against one another, but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Mateo County, Calif. Williams was also charged with conspiring to use the mail to carry out schemes to fraudulently acquire title to selected properties sold at public auctions, to make and receive payoffs and to divert to co-conspirators money that would have otherwise gone to mortgage holders and others.
The department said Williams conspired with others to rig bids and commit mail fraud at public real estate foreclosure auctions in San Mateo County beginning as early as October 2009 and continuing until about December 2010.
“Collusion at these foreclosure auctions enabled the conspirators to present the illusion of competition, when they were actually thwarting the competitive process and profiting at the expense of lenders and distressed homeowners,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division remains committed to holding accountable those who illegally subvert competition at real estate foreclosure auctions across the country.”
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 Mateo 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.
“The legitimacy of an open, public real estate foreclosure auction is compromised when an individual or group conspires to commit criminal activity which impacts genuine intentions of good citizens,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “We are steadfast in our continued partnership with the Antitrust Division in bringing those criminally responsible to justice.”
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 charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
The charges today 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 Field Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm, 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's 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.**
INTERPOL Washington Supports ICE Case on Serbian FugitiveRead the Press Release
WASHINGTON - A Serbian man wanted for being the alleged getaway driver in a murder and attempted murder investigation was deported from the United States Monday. He was escorted to Belgrade, Serbia, after leaving Washington Dulles Airport, by officers with U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO), Washington Field Office.
Milos Mihajlovic, 29, a native of Serbia, entered the United States in May 2008, as a nonimmigrant visitor. On June 20, 2011, INTERPOL issued a red notice for Mihajlovic for attempted aggravated murder and unlawful possession of arms and explosives due to his involvement in an April 2008 shooting which left one person dead and two others injured in Nis, Serbia. Four days later, following an encounter in northern Virginia with a Fairfax Police Department officer, he was turned over to ICE's Homeland Security Investigations (HSI) Washington.
Mihajlovic was ordered removed by an immigration judge in November 2011. He appealed the decision to the Board of Immigration Appeals, who remanded the case back to the judge for additional evidence and testimony. The judge again ordered him removed March 4.
“Individuals like Mihajlovic, who come to the United States to find safe haven from crimes they committed in their native country, are not welcome here and will be removed,” said M. Yvonne Evans, field office director for ERO Washington.
This investigation and removal was coordinated with HSI Attaché Vienna, HSI Attaché Paris, the Regional Security Office Belgrade, INTERPOL Washington and INTERPOL Belgrade.
Since Oct. 1, 2009, ERO has removed more than 646 foreign fugitives from the United States who were being sought in their native countries for serious crimes, including kidnapping, rape and murder. ERO works with HSI's Office of International Affairs, foreign consular offices in the United States, and INTERPOL to identify foreign fugitives illegally present in the country.
Federal Court Shuts Down Florida Tax PreparerRead the Press Release
A federal court in Orlando, Fla., permanently barred Carlos A. Cabrera from preparing federal tax returns for others, the Justice Department announced today. The permanent injunction order was signed by Judge Charlene E. Honeywell of the U.S. District Court for the Middle District of Florida. Cabrera, whose business was in Kissimmee, Fla., consented to the permanent injunction order without admitting the allegations against him.
The government complaint in the civil injunction action alleged that Cabrera and his business—Cabrera Financial Group—prepared federal income tax returns for customers that claimed improper losses for non-existent businesses and fabricated education credits in order to unlawfully understate customers’ tax liabilities. According to the complaint, Cabrera prepared over 17,000 tax returns for 2009 and 2010, with an average tax understatement of $4,222 per return for returns the Internal Revenue Service examined. The government suit alleged that the total losses to the Treasury Department from Cabrera’s misconduct could be tens of millions of dollars for those two years alone.This lawsuit is part of the Justice Department’s nationwide crackdown on tax scams, including the preparation of fraudulent federal tax returns. Over the last decade, the department has obtained hundreds of injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. More information about these cases and the Tax Division can be found on the department’s web site www.justice.gov/tax.
Related Materials:
United States v. Carlos A. Cabrera
Consent Final Judgment of Permanent Injunction (PDF)Owner of Louisiana-based Health Care Company Sentenced in Texas to 97 Months in Prison in Connection with $6.7 Million Medicare Fraud SchemeRead the Press Release
The owner and operator of a Louisiana-based durable medical equipment (DME) company was sentenced today to serve 97 months in prison for his role in a $6.7 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; and Special Agent in Charge Mike Fields of the Dallas Regional Office of the U.S. Department of Health and Human Service’s Office of the Inspector General (HHS-OIG).
Kenny Msiakii, 45, of Houston, was sentenced by U.S. District Judge Nancy Atlas in the Southern District of Texas. In addition to his prison term, Msiakii was sentenced to serve three years of supervised release and ordered to pay $2.5 million in restitution. On Dec. 13, 2012, a federal jury found Msiakii guilty of eight counts of health care fraud.
According to court documents, Msiakii was the owner and operator of Joy Supply and General Services, a company based in Shreveport, La., that purported to provide orthotics and other DME, including power wheelchairs, to Medicare beneficiaries.
Msiakii used Joy Supply’s Medicare provider number to submit claims to Medicare for DME, including orthotic devices, that were medically unnecessary and, in some cases, never provided. Many of the orthotic devices were components of “arthritis kits” and purported to be for the treatment of arthritis-related conditions; however, the devices were neither medically necessary nor appropriate for such conditions. The arthritis kit generally contained a number of orthotic devices including braces for both sides of the body and related accessories such as heat pads.
According to court documents, from November 2007 through September 2009, Msiakii submitted claims of approximately $6.7 million to Medicare and was paid approximately $3.6 million for devices that were not medically necessary and, in some cases, never provided.
This case is being prosecuted by Assistant Chief Laura M.K. Cordova of the Criminal Division’s Fraud Section. The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Southern District of Texas and 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 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
New York Immigration Judge Participates in Naturalization CeremonyRead the Press Release
NEW YORK -- Immigration Judge Joanna M. Bukszpan from the Executive Office for Immigration Review, New York Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 150 candidates during a naturalization ceremony at 26 Federal Plaza in New York on July 12, 2013. The New York District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Janet Reno appointed Judge Bukszpan in September 1995. Judge Bukszpan received a bachelor of arts degree in 1963 from the City University of New York and a juris doctorate in 1976 from Brooklyn Law School. From 1978 to 1995, she was in private practice in New York. From 1976 to 1978, she worked as a trial attorney/general attorney (nationality) for the former Immigration and Naturalization Service in New York. Judge Bukszpan is a member of the District of Columbia and New York State Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewJustice Department to Monitor Election in AlabamaRead the Press Release
The Justice Department announced today that it will monitor the municipal election on June 18, 2013, in the city of Evergreen, Ala., to ensure compliance with the Voting Rights Act of 1965. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
Under the Voting Rights Act, the department is authorized to ask the U.S. Office of Personnel Management (OPM) to send federal observers to jurisdictions that are certified by the Attorney General or by a federal court order. Federal observers will be assigned to monitor polling place activities in Evergreen based on the Attorney General’s certification. The observers will watch and record activities during voting hours at polling locations, and Civil Rights Division attorneys will coordinate the federal activities and maintain contact with local election officials.
Each year, the department deploys hundreds of federal observers from OPM, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.Former University Professor Charged in California with Engaging in Sexual Conduct with Minors and Producing Child PornographyRead the Press Release
Walter Lee Williams, a former university professor, has been indicted for allegedly engaging in sexual conduct with minors and producing child pornography, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Assistant Director Ronald T. Hosko of the FBI Criminal Investigative Division announced today.
Today, the FBI added Williams to its “Ten Most Wanted Fugitives” list, making him the 500th addition to the list.
Williams was charged in an indictment unsealed on Friday, June 14, 2013, in U.S. District Court in the Central District of California. The indictment, which was filed on April 30, 2013, charges Williams with one count of producing child pornography, one count of traveling for the purpose of engaging in illicit sexual conduct with a minor and two counts of engaging in illicit sexual conduct in foreign places.
The indictment alleges Williams traveled from Los Angeles to the Philippines in January 2011 to engage in sex acts with two 14-year-old boys he met online in 2010. Prior to his travel, Williams allegedly engaged in sexual activity via Internet webcam sessions with these boys and expressed a desire to visit them in the Philippines to have sex. While in the Philippines, he allegedly engaged in sex acts with both boys and produced sexually explicit photos of one of the boys. Williams fled the Los Angeles area approximately one week after returning from the Philippines.Williams is a 64-year-old White male. He is 5’9”, weighs approximately 180 pounds and has grayish-brown hair and brown eyes. Williams has previously resided in Palm Springs, Calif., and he was affiliated with a religious organization known as the Buddhist Universal Association in Los Angeles. Williams has an extensive history of travel throughout the Southeast Asia region, specifically the Philippines. He has reportedly resided in Indonesia, Polynesia and Thailand. Williams is also alleged to have owned property in Thailand. He may also travel to Mexico and Peru.
The FBI is offering a reward of up to $100,000 for information leading directly to the arrest of this subject, the newest addition to the “Ten Most Wanted Fugitives” list. This is an ongoing investigation.
Trial Attorneys Michael Grant and Herbrina Sanders from the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting this case. The FBI Los Angeles field office is investigating the case.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Alicia A.G. Limtiaco Speaker at the 27th Annual San Diego International Conference on Child and Family MaltreatmentRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, was a speaker at the 27th Annual San Diego International Conference on Child and Family Maltreatment, held on January 28-31, 2013. Over 1600 participants were at the Conference from nearly 35 countries.
U.S. Attorney Limtiaco was joined by Suzanna Tiapula from the National District Attorney’s Association and their workshop was entitled, “Strategies for Justice: A Pacific Regional Response to Combat Human Trafficking” and introduced a regional model to combat human trafficking and child exploitation. The workshop included a discussion of collaborative efforts and coalition building among federal and local government agencies and non-governmental organizations, and the need for a multi-disciplinary approach to address the needs of victims and families.
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. The response provides 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.
The 27th Annual San Diego International Conference on Child and Family Maltreatment was presented by the Chadwick Center for Children and Families at Rady Children’s Hospital-San Diego. U.S. Attorney Limtiaco’s track was one of many which included, Medicine, Investigations, Law, Mental Health, Forensic Interviewing, Child Welfare and Research, Military Families, Child Torture, Human Trafficking, Child Protection in Indian Country, Infant and Early Childhood Mental Health, Global Perspectives and Law and Ethics courses. The goal was to provide opportunities to learn from all the participants and to rekindle the passion to help create a world where children and families are healthy and free from abuse and neglect.
U.S. Attorney Alicia A.G. Limtiaco Keynote Speaker at UOG’s Human Trafficking ForumRead the Press Release
HAGATNA, GU -- United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), WAS THE KEYNOTE SPEAKER AT THE University of Guam’s (UOG) “It’s Happening: Human Trafficking Forum with a Special Emphasis on Sex Trafficking on Guam and Micronesia,” held on May 10, 2013, at the UOG Class Lecture Hall. The Forum was organized by UOG’s School of Business & Public Administration Government Public Information Spring ’13 class. U.S. Attorney Limtiaco’s presentation included information about the Pacific Regional Response to Combat Human Trafficking initiative.
The U.S. Attorney’s Office (“USAO”) for the Districts of Guam and the Northern Mariana Islands (“NMI”) continues to work collaboratively with the National District Attorney’s Association; U.S. Department of Interior, Office of Insular Affairs, Federal Ombudsman Office; and U.S. Department of State, Monitoring of Trafficking in Persons Office, on a Pacific Regional Response to Combat Human Trafficking.
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. The response provides training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics. The critical training is provided to various groups in our Pacific region island communities, 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.
The objective of the Forum was to promote awareness to the sensitive issue of Human Trafficking with a focus on Sex Trafficking with Micronesia. Key leaders were invited to convey their current and future actions in regards to Human Trafficking. The Form was in correlation and support of Law Week 2013 and the 150th anniversary of the Emancipation Proclamation.
The Human Trafficking Forum included presentations from other community leaders in law enforcement, the Judiciary and non-governmental organizations and support groups. Attached are photos taken at the event.
U.S. Attorney Alicia A.G. Limtiaco Keynote Speaker at Soroptimist Charter NightRead 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 keynote speaker at the Soroptimist International of Guam’s 35th Anniversary and the Soroptimist International of the Marianas’ 27th Anniversary Charter Night celebration held on March 8, 2013, at the Sheraton Laguna Guam Resort
Last year, U.S. Attorney Limtiaco was honored by both Soroptimist organizations as the Soroptimist Founder Region Ruby Award Recipient. The Soroptimist Ruby Award is an Award “For Women Helping Women” which acknowledges women who are working to improve the lives of women and girls through their personal or professional activities. Their efforts help to promote the issues that are important to the Soroptimist organization. She received this award for her efforts focusing on creating awareness that human trafficking and sexual slavery are a critical global problem.
U.S. Attorney Limtiaco has also a been guest speaker at the Soroptimist International of the Marianas’ (SIM) program meetings to talk to members about new laws surrounding domestic violence, sexual assault and human trafficking, encouraging members from organizations like SIM to find some way to be involved.
Guam has two sister Soroptimist organizations: The Soroptimist International of Guam (SIG) and The Soroptimist International of the Marianas (SIM). SIG and SIM are both volunteer service organizations for business and professional women and men. Soroptimists are professional and business executives of all ages, cultures and ethnic groups. Members represent a wide array of professions, including physicians, attorneys, teachers, artists, chief executive officers of companies, business owners and government officials. A Soroptimist is a leader in the community, engaging in awareness, advocacy, and action in the service of the community and society, making the world a better place of humankind. The name, Soroptimist, means “best for women,” and that’s what the organization strives to achieve. Soroptimists are women and men at their best, working to help women in the community to be their best. The heart of Soroptimist’s mission is to “make a difference for women” through volunteer service to the community. Projects are carefully chosen to address challenges unique to today’s women.
U.S. Attorney Alicia A.G. Limtiaco Keynote Speaker at Naturalization Ceremony in CNMIRead 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 by the Honorable Ramona V. Manglona, Chief Judge of the District Court of the Northern Mariana Islands, to be the keynote speaker at the Naturalization Ceremony held on April 22, 2013, in the District Court of the Northern Mariana Islands, in Saipan. Fifteen (15) individuals from several countries, including the Philippines and Thailand, were newly sworn as United States citizens. The Naturalization Ceremony was held as part of the events to commemorate Law Week 2013.
U.S. Attorney Limtiaco, in her address and congratulatory remarks to the newly sworn United States citizens, stated, "... the year 2013 signifies the 150th anniversary of the Emancipation Proclamation. Dr. Martin Luther King, Jr. called upon our country to live up to our promise of equality for all. The United States Department of Justice, Civil Rights Division, works to uphold and protect the civil rights and constitutional rights of all Americans, particularly of the most vulnerable members of our society. It enforces federal statutes prohibiting discrimination on the basis of national origin, race, color, sex, disability, religion, and familial status."
"Justice is only served when it is practiced fairly and evenhandedly. Citizens need to know that they will be afforded justice without distinction as to national original, race, color creed, gender or status; and that the same rules apply for every citizen no matter of stature or influence in the community. We must continue to draw strength from our diversity as a nation, including those of different races, ethnicities, cultures and religions, as it is our diversity as a people and the strength that we gain from it that contributes to our resiliency as a nation during our most challenging times," said U.S. Attorney Limtiaco.
U.S. Attorney Alicia A.G. Limtiaco Judges 29th Annual AG’s Cup Speech CompetitionRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), at the invitation of Joey P. San Nicolas, Attorney General of the NMI, was a judge at the 29th Annual Attorney General’s Cup Speech Competition held on May 3, 2013, in the Supreme Court Courtroom in Saipan, NMI.
The Attorney General’s Cup offers CNMI high school students the opportunity to research a current issue affecting the CNMI and advocate for their position in front of a panel of judges and the community.
This topic for this year was, “Should the Commonwealth Government enact legislation that encourages economic development in the Northern Mariana Island?” U.S. Attorney Limtiaco was one of ten judges from both Guam and Saipan. Eight student finalists all from different high schools gave their speeches as they battled to receive the CNMI Attorney General’s Cup.
“The U.S. Attorney’s Office commends and congratulates the participating students of Kagman High School, Marianas High School, Mount Carmel School, Tinian Junior/Senior High School, Saipan Southern High School, Dr. Rita H. Inos Junior/Senior High School, Grace Christian Academy and Marianas Baptist Academy, for their outstanding efforts and advocacy at the 29th Annual Attorney General’s Cup Speech Competition. The students demonstrated their impressive critical thinking, research, debate and public speaking skills as they presented on this year’s speech competition issue, and are deserving of special recognition and acknowledgement for their commitment, hard work and diligent efforts,” stated U.S. Attorney Limtiaco.
U.S. Attorney Alicia A.G. Limtiaco Guest Speaker at UOG’s Trio Student Support Services ProgramRead 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 University of Guam’s (UOG) TRIO Programs Student Support Services (SSS) for their Spring 2013 Retention Activity held on Friday, May 10, 2013, at the UOG Multi-Purpose Lecture Hall. The Student Support Services Workshop was entitled, “Researching Potential Employers and Networking for Your Future.” U.S. Attorney Limtiaco’s presentation included information about the U.S. Attorney’s Office, its caseload, and the priorities and initiatives of the Department of Justice.
The mission of the TRIO Program is to "Instill, serve, and inspire students with a positive force towards achieving their higher education." U.S. Attorney Limtiaco was invited because of her unique experience and perspective which could help the TRIO SSS participants, especially those who desire a career in criminal justice. She was invited “to provide the UOG students with guidance and insight which will help them with their educational and career goals, while balancing the other important components of their lives such as family, work, spirituality, community service, and recreation.”
The SSS program provides support services to low-income students, first generation college students, and disabled students enrolled in post-secondary education programs. Eligible students may receive (among other services) personal and academic career counseling, career guidance, instruction, mentoring, and tutoring. The goal of SSS program is to increase the college retention and graduation rates of its participants and help students make the transition from one level of higher education to the next.
State and Local Anti-Terrorism Training Held in Guam and the CNMIRead 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 after a year of planning, the State and Local Anti-Terrorism Training (SLATT) Program was very well-received in the Marianas. The program was presented by the the U.S. Department of Justice’s Bureau of Justice Assistance (BJA) ProgramU.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands, the Guam Homeland Security/Office of Civil Defense, the Commonwealth of the Northern Mariana Islands Office of Homeland Security and Emergency Management, the Joint Task Force-Homeland Defense. Two instructors, Richard Marquise and William Dyson from the Institute for Intergovernmental Research (IIR) provided the SLATT workshops to various law enforcement, hotel and private security, military anti-terrorism personnel and other community leaders. Topics discussed dealt with International Terrorism, Domestic Terrorism, Suspicious Activity Reporting and other national and regional security concerns.
The SLATT Program was conducted on Guam (April 23-24, 2013) and on Saipan (April 25-26, 2013). The specialized workshop on April 23, 2013, was comprised of 162 Guam participants from various law enforcement, hotel and private security, military anti-terrorism personnel and other community leaders. The SLATT Train-the-Trainer workshop held on day two, was comprised of 76 law enforcement homeland security personnel.
On Saipan, the specialized workshop on April 25, 2013, was comprised of 147 participants from different state and federal agencies in the CNMI. An additional workshop was held on April 26, 2013, where 32 individuals from various law enforcement agencies were invited back to participate in SLATT Train-the-Trainer course. This was the first time the SLATT Program was held in the Commonwealth of the Northern Mariana Islands.
Foundational Skills for Child and Adolescent Interviews Training Held in Guam and the CNMIRead 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 U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands sponsored the training entitled, Foundational Skills for Child and Adolescent Interviews Training, which was held in Guam on April 18, 2013, with participants from the NMI via video teleconferencing. The main speaker for the training was Karen R. Blackwell, MSW, LCSW, Child/Adolescent Forensic Interviewer, from the Federal Bureau of Investigation, Denver Division. Ms. Blackwell is a licensed clinical social worker and has conducted in excess of 2500 forensic interviews with children, adolescents and persons with developmental disabilities. Ms. Blackwell teaches and trains both locally, nationally and internationally and is the recipient of the prestigious “2002 Excellence in Practice Award” presented by the Colorado Department of Human Services, Division of Child Welfare. Ms. Blackwell covered the topics, Understanding Child Interviewing Memory and Suggestibility; Adolesent Victims and Interview Guidelines. U.S. Attorney Limtiaco and Arlene T. Gadia, Social Services Supervisor from the DPHSS Child Protective Services spoke on Child Abuse Mandatory Reporting Requirements.
Participants at the training in Guam were from the Attorney General’s Office, Bureau of Alcohol, Tobacco and Firearms, the Guam Police Department, the Department of Public Health and Social Services-Child Protection Services, FBI, Healing Hearts Crisis Center, and the U.S. Attorney’s Office. Participants from the NMI were from the Department of Public Safety, Attorney General’s Office, and the U.S. Attorney’s Office
Former Security Contractor Executives<br /> Sentenced for Illegally Obtaining More Than $31 Million<br /> Intended for Disadvantaged Small BusinessesRead the Press Release
Two executives at a Virginia-based security contracting firm were sentenced in the Eastern District of Virginia for their roles in using a front company to obtain more than $31 million intended for disadvantaged small businesses as part of the Small Business Administration’s (SBA) Section 8(a) program. This program allows qualified small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; National Aeronautics and Space Administration (NASA) Inspector General Paul K. Martin; SBA Inspector General Peggy E. Gustafson; Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office Robert E. Craig; General Services Administration (GSA) Inspector General Brian D. Miller; and Department of Homeland Security (DHS) Deputy Inspector General Charles K. Edwards made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
Joseph Richards, 52, of Arlington, Va., and David Lux, 66, of Springfield, Va., were sentenced today to 27 and 15 months in prison, respectively, after pleading guilty in March 2013 to conspiracy to commit major government fraud. Both men were ordered to complete community service as part of their supervised release following their prison terms. Richards was ordered to pay $120,378 in restitution, and Lux was ordered to forfeit $115,556.
According to court documents, Richards and Lux were executives at an Arlington-based security contracting firm referred to as Company A in court records. In approximately 2001, Keith Hedman, 53, of Arlington, formed Company A, which was approved to participate in the 8(a) program based on the 8(a) eligibility of its listed president and CEO, an African-American female. When the listed president and CEO left Company A in 2003, Hedman became its sole owner, and the company was no longer 8(a)-eligible.
In 2003, Hedman created Company B, another Arlington-based security contractor, to ensure that he could continue to gain access to 8(a) contracting preferences for which Company A was no longer qualified. Prior to applying for Company B’s 8(a) status, Hedman selected an employee, Dawn Hamilton, 48, of Brownsville, Md., to serve as a figurehead owner based on her Portuguese heritage and history of social disadvantage. In reality, the new company was managed by Hedman and Company A senior leadership in violation of 8(a) rules and regulations. To deceive the SBA, the co-conspirators falsely claimed that Hamilton formed and founded the company and that she was the only member of the company’s management. Based on those misrepresentations, Company B obtained 8(a) status in 2004. From 2004 through February 2012, Hedman – not Hamilton – impermissibly exercised ultimate decision-making authority and control over Company B by directing its finances, allocation of personnel, and government contracting activities.
Richards and Lux joined the scheme in 2005 and 2008, respectively. Hedman offered Richards and Lux ownership stakes in Company B in exchange for their assistance in misleading the SBA and other U.S. government agencies, and both men accepted. Once they joined the conspiracy, Richards and Lux took a variety of actions to further the fraud against the United States. In 2008, for example, both Richards and Lux helped Company B overcome a protest by another company that accused Company A and Company B of improperly obtaining a $48 million Coast Guard contract.
From 2008 to 2010, Richards moved to Company B’s payroll to help Hedman illegally operate Company B. In 2010, Lux helped Hedman withdraw more than $1 million in cash from Company B’s accounts, which Hedman then disbursed to various conspirators, including $100,000 in cash to both Richards and Lux. Richards and Lux also assisted Hedman, Hamilton, and other co-conspirators prepare false documents, including annual reviews, to submit to SBA and other government agencies.
In total, the scheme netted government contracts valued at more than $153 million, from which Company B obtained more than $31 million in contract payments. The various conspirators netted more than $6.1 million that they were not entitled to receive from those payments.
Six other defendants have pleaded guilty in the scheme:
• Hedman is scheduled to be sentenced by U.S. District Judge Gerald Bruce Lee on June 21, 2013.
• Hamilton is scheduled to be sentenced by U.S. District Judge T. S. Ellis, III on June 28, 2013.
• David Sanborn, 60, of Lexington, S.C., Company A’s former president, is scheduled to be sentenced by U.S District Judge Claude M. Hilton on July 19, 2013.
• John Hertogs, 42, of Winter Springs, Fl., Company B’s former director of operations, is scheduled to be sentenced by Judge Hilton on July 12, 2013, for submitting a fraudulent 8(a) application for a follow-on company that Hedman and Hamilton intended to use once Company B graduated from the 8(a) program.
• Derek Matthews, 47, of Harwood, Md., former Regional Director for the National Capital Region of the Federal Protective Service, is scheduled to be sentenced by Judge Brinkema on July 19, 2013, for a related bribery scheme in which Hedman agreed to pay Matthews $50,000 and a percentage of new business in exchange for Matthews helping Company B obtain contracts.
• Michael Dunkel, 59, of Merritt Island, Fl., is scheduled to be sentenced by Judge Lee on Oct. 4, 2013, for obtaining more than $4.4 million in payments by using Company B as a pass-through company on NASA contracts.This case is being investigated by NASA Office of the Inspector General (OIG), the SBA -OIG, DCIS-OIG, GSA-OIG, and DHS-OIG, with assistance from the Defense Contract Audit Agency. Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, are prosecuting the case on behalf of the United States.
Axius CEO Roland Kaufmann Sentenced for<br /> Conspiracy to Pay Bribes in Stock SalesRead the Press Release
Roland Kaufmann, CEO of Axius Inc., was sentenced today to serve 16 months in prison for his role in a conspiracy to bribe purported stock brokers and manipulate the stock of a company he controlled, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Eastern District of New York Loretta Lynch.
Kaufmann, 60, a Swiss citizen, was sentenced today by U.S. District Judge John Gleeson in the Eastern District of New York. In addition to his prison term, Kaufmann was sentenced to serve three years of supervised release and ordered to pay a fine of $450,000.
Kaufmann pleaded guilty in January 2013 to one count of conspiracy to violate the Travel Act in connection with a scheme to bribe stock brokers to purchase the common stock of a company he controlled and to manipulate its stock price. As part of his plea agreement, Kaufmann forfeited $298,740 gained through this crime.
According to court documents, Kaufmann controlled Axius, Inc., a purported holding company and business incubator located in Dubai. As part of the scheme, the defendant and his co-conspirator, Jean Pierre Neuhaus, enlisted the assistance of an individual who they believed had access to a group of corrupt stock brokers, but who was, in fact, an undercover law enforcement agent. Court documents reveal that they instructed the undercover agent to direct brokers to purchase Axius shares in return for a secret kickback of approximately 26 to 28 percent of the share price. Kaufman and Neuhaus also instructed the undercover agent as to the price the brokers should pay for the stock and that the brokers were to refrain from selling the Axius shares they purchased on behalf of their clients for a one-year period. By preventing sales of Axius stock, Kaufmann and Neuhaus intended to maintain the fraudulently inflated share price for Axius stock.
Jean Pierre Neuhaus has pleaded guilty and been sentenced for his role in the scheme.
The case is being prosecuted by Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ilene Jaroslaw, with assistance from Fraud Section Trial Attorney Nathan Dimock. The case was investigated by the FBI New York Field Office and the Internal Revenue Service New York Field Office. The Department also recognizes the substantial assistance of the U.S. Securities and Exchange Commission.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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’s 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 more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.StopFraud.gov.
Wyoming Couple Indicted for Tax EvasionRead the Press Release
In an indictment unsealed on June 12, 2013, Robert and Judy Sathre, of Sheridan, Wyo. were charged by a federal grand jury in Cheyenne, Wyo., for conspiring to defraud the IRS and tax evasion relating to taxes owed by Robert Sathre for tax years 1995 and 1996. Judy Sathre was also charged with filing a false tax return for tax year 2007.
According to the indictment, Robert Sathre sold a Minnesota business and received installment payments in 1995 and 1996 for more than three million dollars. Robert Sathre concealed his income by filing a 1995 tax return in which he reported only $64,928 in total income. Robert Sathre then purchased land and set up another business, a gas station/convenience store in Sheridan, Wyo. known as the Rock Stop.
According to the indictment, the Sathres concealed assets by opening a foreign bank account in the Caribbean island of Nevis and by using purported trusts. In a ten-month period spanning 2005-2006, Mr. Sathre sent over $500,000 to the account in Nevis to keep the funds out of reach from the IRS. When Robert Sathre sold the Rock Stop in 2007, he had over $1,250,000 from the sale proceeds wired to the trust account of a Wyoming law firm. Later the Sathres directed the law firm to wire $900,000 from the trust account to their account at the Bank of Nevis. They also provided a false declaration and false promissory note to the Bank of Nevis to conceal the source of this transfer. Robert Sathre obtained a debit card linked to the foreign account to access funds locally. He also provided the Bank of Sheridan with an IRS form on which he falsely claimed that he was neither a citizen nor a resident of the United States.The indictment also alleges that the Sathres tried to conceal their ownership of real estate. They used a purported trust to encumber their residence at Troon Place in Sheridan and to conceal their ownership of property in Hennepin County in Minnesota. To conceal ownership of the Rock Stop, they similarly used a second purported trust, at one point resigning as trustees and appointing their teenage daughter as the trustee.
The indictment also charges Judy Sathre with one count of filing a false tax return for 2007. The indictment alleges that the return was false both for reporting only $42 in interest income and for failing to disclose that she had a financial interest and signatory authority over the bank account at the Bank of Nevis.
A trial date has not been scheduled. An indictment is merely an accusation, and every defendant is presumed innocent unless and until proven guilty.
The conspiracy and tax evasion charges each carry a maximum potential penalty of five years in prison and a fine of $250,000. The false return charge carries a maximum potential penalty of three years in prison and a $250,000 fine.This case is being prosecuted by Trial Attorneys Ellen Quattrucci and Ignacio Perez de la Cruz of the Justice Department’s Tax Division and was investigated by IRS – Criminal Investigation.
Utah Man Charged with Filing False Claims for Tax RefundsRead the Press Release
A federal grand jury in Salt Lake City yesterday returned an indictment charging Dick Reid Jenkins, a resident of Heber City, Utah with eighteen counts of presenting false claims to the United States.
According to the indictment, in September 2008, Dick Jenkins filed a false 2007 income tax return for himself which claimed an income tax refund of $402,920. Then, in October 2008, Jenkins filed a false amended 2004 income tax return, which claimed an income tax refund of $434,261. Both false claims were based on the use of false Form 1099-OID, Original Issue Discount. In addition to his own false returns, from September 2008 through February 2009, Jenkins caused sixteen other false federal income tax returns to be filed on behalf of other individuals. These other false tax returns also used false Form 1099-OID and claimed federal income tax refunds totaling $8,407,623. The indictment further alleges that Dick Jenkins was licensed by the state of Utah as a Certified Public Accountant at all times relevant to these charges.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty. If convicted, Jenkins faces a maximum of 90 years in prison.
The case is being investigated by IRS-Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Stuart Wexler and Michael Romano.