District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
International Competition Network AdvancesConvergence Through Initiatives onEnforcement Cooperation and Investigative ProcessRead the Press Release
T he International Competition Network (ICN) advanced convergence through important initiatives on international enforcement cooperation and investigative processes in competition cases, the Department of Justice announced today. The ICN adopted new work product on economic analysis in merger review, legal theories in exclusive dealing investigations, international cooperation and information sharing in cartel enforcement, and the benefits of competition.
The 12th annual ICN conference, hosted by Poland’s Office of Competition and Consumer Protection (OCCP), was held on April 24-26, 2013, in Warsaw, Poland. More than 500 delegates participated, representing more than 80 antitrust agencies from around the world, including competition experts from international organizations and the legal, business, consumer and academic communities. Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division and Federal Trade Commission (FTC) Chairwoman Edith Ramirez led the U.S. delegation. The conference showcased the achievements of ICN working groups on cartels, competition advocacy, competition agency effectiveness, mergers and unilateral conduct.
“One of the defining characteristics of the ICN is the deep engagement of its members on critical antitrust issues, including mergers, anti-cartel enforcement, unilateral conduct and competition advocacy,” said Assistant Attorney General Baer. “The discussions and work product emerging from this meeting strengthen the ties between U.S. enforcers and our counterparts around the globe and enhance effective antitrust enforcement for the benefit of all consumers.”
Bronislaw Komorowski, the President of Poland, provided opening remarks at the conference. John Fingleton, former Chief Executive of the UK Office of Fair Trading and former ICN Steering Group Chair, moderated a panel on competition and its relevance to global economic policy discussion among representatives from the World Trade Organization, World Bank and International Chamber of Commerce. Joaquin Almunia, European Commission Vice President and Commissioner for Competition, also addressed the conference. Eduardo P é rez Motta, ICN Steering Group Chair and President of the Mexican Federal Competition Commission, spoke about his initiatives to support ICN member competition advocacy and enhance cooperation with international organizations .
Assistant Attorney General Baer moderated a panel of antitrust officials on international enforcement cooperation to discuss the strengths and limitations of current cooperation frameworks. The panel also discussed future ICN work that could best help antitrust agencies address the challenges of engaging effectively in international enforcement cooperation. Over the past year, the ICN partnered with the Organization for Economic Cooperation and Development (OECD)’s Competition Committee on a comprehensive study of the state of international enforcement cooperation. Lynda K. Marshall, Assistant Chief of the Department of Justice’s Antitrust Division’s Foreign Commerce Section, led a discussion on future work on international cooperation in cartel enforcement.
The Polish OCCP led a special project devoted to the interaction between competition agencies and courts, culminating in a session led by OCCP President Malgorzata Krasnodebska-Tomkiel. FTC Chairwoman Ramirez addressed the vital role of economic evidence in competition cases and offered guidance for how to effectively present this evidence to generalist courts. She also highlighted the various tools available to competition agencies to encourage courts to recognize competition law principles.
“This 12th annual ICN conference demonstrated how competition agencies from around the world can come together both to advance convergence toward best practices in antitrust enforcement and to strengthen the voice of competition policy as our governments confront common economic challenges,” said Chairwoman Ramirez.
The conference also highlighted the work of the Cartel Working Group, co-chaired by the Department of Justice, the Japan Fair Trade Commission and Germany’s Bundeskartellamt. The working group brings together antitrust enforcers to address the challenges of anti-cartel enforcement, through the examination of important policy issues and the exchange of effective investigative techniques. The group presented a new chapter on international cooperation and information sharing for its Anti-Cartel Enforcement Manual, a reference tool for antitrust agencies on effective investigative techniques.
The Agency Effectiveness Working Group, co-chaired by the FTC, the Mexican Federal Competition Commission and the Norwegian Competition Authority, examines the institutions and procedures that support the enforcement missions of competition agencies. Randolph W. Tritell, Director of the FTC’s Office of International Affairs , led a panel discussion and presentation of the group’s work related to investigative tools and agency transparency practices, part of a project on investigative processes in competition cases. The working group also presented two new chapters on effective knowledge management and human resources management for its competition agency practice manual.
The conference showcased the ICN Curriculum Project, a project led by the FTC to create a “virtual university” of training materials on competition law and practice. FTC Counsel Paul O’Brien presented the Curriculum Project and its new modules on planning and conducting investigations, competition advocacy and challenges for agencies in developing countries.
The Merger Working Group, co-chaired by the European Commission’s Competition Directorate, the Competition Commission of India (CCI) and the Italian Competition Authority aims to promote best practices in the design and operation of merger review regimes. The FTC’s Director of the Bureau of Economics, Howard Shelanski, participated in a panel discussion of the role of economic analysis in merger review. The panel highlighted the group’s new work addressing the role of economic evidence in merger analysis, a comprehensive overview of the qualitative and quantitative analyses available to antitrust agencies for the review of horizontal mergers.
The Unilateral Conduct Working Group, co-chaired by the Swedish Competition Authority, the Turkish Competition Authority, and the UK Office of Fair Trading, promotes convergence and sound enforcement of laws governing conduct by firms with substantial market power. T he working group presented a new workbook chapter on exclusive dealing arrangements as part of a project that is producing a practical guide to the investigation of the various types of unilateral conduct.
The Advocacy Working Group, co-chaired by the French Autorité de la Concurrence, the Portuguese Competition Authority and the Competition Commission of Mauritius, develops practical tools and guidance to improve the effectiveness of ICN members’ competition advocacy. This year, the working group developed draft guidance on procedures and analysis for assessing existing or proposed laws and regulations to determine whether they may have a significant impact on competition. The group also presented its work on practical techniques to help promote a competition culture and strategies for explaining the benefits of competition to other government entities.
The ICN was created in October 2001, when the Department of Justice and the FTC joined antitrust agencies from 13 other jurisdictions to increase understanding of competition policy and promote convergence toward best practices around the world. The ICN now includes 126 member agencies from 111 jurisdictions.
ICN documents are available at www.internationalcompetitionnetwork.org .
Alabama Residents Indicted for Stolen Identity Refund Fraud ConspiracyRead the Press Release
Several residents of Montgomery, Ala., were indicted by a federal grand jury for their involvement in a conspiracy to receive fraudulent tax refunds into their bank accounts, the Justice Department and the Internal Revenue Service (IRS) announced today. Tarrish Tellis, Bobby Joe Means, Delancy Tolliver, Tracey Montgomery and Glenn Powell Jr. were indicted on various charges, including conspiracy and theft of government money. Tellis was also indicted on five counts of aggravated identity theft.
According to the indictment, Tellis obtained the means of identification of individuals, including their names, dates of birth, and Social Security numbers for the purpose of filing false federal income tax returns. Means, Tolliver, Montgomery and Powell provided Tellis with bank account numbers that were to receive the false federal income tax refunds. Tellis would then use the bank account numbers and means of identification to cause to be prepared and filed false federal income tax returns with the IRS. After the false refunds were deposited, Means, Tolliver, Montgomery and Powell would withdraw the funds. The bank accounts received at least $500,000 in false tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each of the defendants face a maximum potential sentence of five years in prison for the conspiracy charge, up to ten years in prison on each theft of government funds charges. Tellis also faces a mandatory two-year sentence for the aggravated identity theft counts. The defendants will also be subject to fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr., Michael Boteler, and Greg Bailey of the Justice Department's Tax Division are prosecuting the case, with the assistance from the U.S. Attorney's Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
Alabama Man Indicted for Multi-Million Dollar Stolen Identity Refund Fraud Scheme Using Prisoner IdentitiesRead the Press Release
A federal grand jury in Montgomery, Ala., returned an indictment charging Harvey James for using stolen identities to file false tax returns, the Justice Department the Internal Revenue Service (IRS) announced today. The 34-count indictment charges James with mail fraud and aggravated identity theft.
According to the indictment, Harvey James obtained stolen identities from individuals who had access to inmate information from the Alabama Department of Corrections. James and others used those inmate names to file false federal and state tax refunds. James directed some of the false refunds to be sent to either prepaid debit cards or issued via check. He directed some of the prepaid debit cards and state tax refund checks to be mailed to various addresses on a U.S. Postal Service mail carrier’s route which was located in Montgomery, Ala. Between 2010 and 2012, James and others are alleged to have filed over 2,000 federal and state income tax returns that claimed over $2.5 million in fraudulent tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, James faces 20 years imprisonment for each mail fraud count and a mandatory 2-year sentence for the aggravated identity theft counts. He is also subject to fines, mandatory restitution, and forfeiture if convicted.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Unsealed Indictment Charges Former U.S. Federal Employee <br /> with Conspiracy to Commit Espionage for CubaRead the Press Release
A one-count indictment was unsealed today in U.S. District Court for the District of Columbia charging Marta Rita Velazquez, 55, with conspiracy to commit espionage, announced John Carlin, Acting Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
The charges against Velazquez stem from, among other things, her alleged role in introducing Ana Belen Montes, now 55, to the Cuban Intelligence Service (CuIS) in 1984; in facilitating Montes’s recruitment by the CuIS; and in helping Montes later gain employment at the U.S. Defense Intelligence Agency (DIA). Montes served as an intelligence analyst at DIA from September 1985 until she was arrested for espionage by FBI agents on Sept. 21, 2001. On March 19, 2002, Montes pleaded guilty in the District of Columbia to conspiracy to commit espionage on behalf of Cuba. Montes is currently serving a 25-year prison sentence.
The indictment against Velazquez, who is also known as “Marta Rita Kviele” and as “Barbara,” was originally returned by a grand jury in the District of Columbia on Feb. 5, 2004. It has remained under court seal until today. Velazquez has continuously remained outside the United States since 2002. She is currently living in Stockholm, Sweden. If convicted of the charges against her, Velazquez faces a potential sentence of up to life in prison.
According to the indictment, Velazquez was born in Puerto Rico in 1957. She graduated from Princeton University in 1979 with a bachelor’s degree in Political Science and Latin American Studies. Velazquez later obtained a law degree from Georgetown University Law Center in 1982 and a master’s degree from Johns Hopkins University School of Advanced International Studies (SAIS) in Washington, D.C., in 1984.
Velazquez later served as an attorney advisor at the U.S. Department of Transportation, and, in 1989, she joined the State Department’s U.S. Agency for International Development (USAID) as a legal officer with responsibilities encompassing Central America. During her tenure at USAID, Velazquez held a Top Secret security clearance and was posted to the U.S. Embassies in Nicaragua and Guatemala. In June 2002, Velazquez resigned from USAID following press reports that Montes had pleaded guilty to espionage and was cooperating with the U.S. government. Velazquez has remained outside the United States since 2002.
The indictment alleges that, beginning in or about 1983, Velazquez conspired with others to transmit to the Cuban government and its agents documents and information relating to the U.S. national defense, with the intent that they would be used to the injury of the United States and to the advantage of the Cuban government.
As part of the conspiracy, Velazquez allegedly helped the CuIS spot, assess and recruit U.S. citizens who occupied sensitive national security positions or had the potential of occupying such positions in the future to serve as Cuban agents. For example, the indictment alleges that, while Velazquez was a student together with Montes at SAIS in Washington, D.C., in the early 1980s, Velazquez fostered a strong, personal friendship with Montes, with both sharing similar views of U.S. policies in Nicaragua at the time.
In December 1984, the indictment alleges, Velazquez introduced Montes in New York City to a Cuban intelligence officer who identified himself as an official of the Cuban Mission to the United States. The intelligence officer then recruited Montes. In 1985, after Montes’ recruitment, Velazquez personally accompanied Montes on a clandestine trip to Cuba for Montes to receive spy craft training from CuIS.
Later in 1985, Velazquez allegedly helped Montes obtain employment as an intelligence analyst at the DIA, where Montes had access to classified national defense information and served as an agent of the CuIS until her arrest in 2001. During her tenure at the DIA, Montes disclosed the identities of U.S. intelligence officers and provided other classified national defense information to the CuIS.
During this timeframe, Velazquez allegedly continued to serve the CuIS, receiving instructions from the CuIS through encrypted, high frequency broadcasts from her handlers and through meetings with handlers outside the United States.
This case was investigated by the FBI’s Washington Field Office and the DIA. It is being prosecuted by Senior Trial Attorney Clifford Rones of the Counterespionage Section in the Justice Department’s National Security Division, and Assistant U.S. Attorney G. Michael Harvey of the U.S. Attorney’s Office for the District of Columbia.
The charges contained in an indictment are merely allegations and each defendant is presumed innocent unless and until proven guilty in a court of law.
WASHINGTON – A one-count indictment was unsealed today in U.S. District Court for the District of Columbia charging Marta Rita Velazquez, 55, with conspiracy to commit espionage, announced John Carlin, Acting Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.The charges against Velazquez stem from, among other things, her alleged role in introducing Ana Belen Montes, now 55, to the Cuban Intelligence Service (CuIS) in 1984; in facilitating Montes’s recruitment by the CuIS; and in helping Montes later gain employment at the U.S. Defense Intelligence Agency (DIA). Montes served as an intelligence analyst at DIA from September 1985 until she was arrested for espionage by FBI agents on Sept. 21, 2001. On March 19, 2002, Montes pleaded guilty in the District of Columbia to conspiracy to commit espionage on behalf of Cuba. Montes is currently serving a 25-year prison sentence.
The indictment against Velazquez, who is also known as “Marta Rita Kviele” and as “Barbara,” was originally returned by a grand jury in the District of Columbia on Feb. 5, 2004. It has remained under court seal until today. Velazquez has continuously remained outside the United States since 2002. She is currently living in Stockholm, Sweden. If convicted of the charges against her, Velazquez faces a potential sentence of up to life in prison.
According to the indictment, Velazquez was born in Puerto Rico in 1957. She graduated from Princeton University in 1979 with a bachelor’s degree in Political Science and Latin American Studies. Velazquez later obtained a law degree from Georgetown University Law Center in 1982 and a master’s degree from Johns Hopkins University School of Advanced International Studies (SAIS) in Washington, D.C., in 1984.
Velazquez later served as an attorney advisor at the U.S. Department of Transportation, and, in 1989, she joined the State Department’s U.S. Agency for International Development (USAID) as a legal officer with responsibilities encompassing Central America. During her tenure at USAID, Velazquez held a Top Secret security clearance and was posted to the U.S. Embassies in Nicaragua and Guatemala. In June 2002, Velazquez resigned from USAID following press reports that Montes had pleaded guilty to espionage and was cooperating with the U.S. government. Velazquez has remained outside the United States since 2002.
The indictment alleges that, beginning in or about 1983, Velazquez conspired with others to transmit to the Cuban government and its agents documents and information relating to the U.S. national defense, with the intent that they would be used to the injury of the United States and to the advantage of the Cuban government.
As part of the conspiracy, Velazquez allegedly helped the CuIS spot, assess and recruit U.S. citizens who occupied sensitive national security positions or had the potential of occupying such positions in the future to serve as Cuban agents. For example, the indictment alleges that, while Velazquez was a student together with Montes at SAIS in Washington, D.C., in the early 1980s, Velazquez fostered a strong, personal friendship with Montes, with both sharing similar views of U.S. policies in Nicaragua at the time.
In December 1984, the indictment alleges, Velazquez introduced Montes in New York City to a Cuban intelligence officer who identified himself as an official of the Cuban Mission to the United States. The intelligence officer then recruited Montes. In 1985, after Montes’ recruitment, Velazquez personally accompanied Montes on a clandestine trip to Cuba for Montes to receive spy craft training from CuIS.
Later in 1985, Velazquez allegedly helped Montes obtain employment as an intelligence analyst at the DIA, where Montes had access to classified national defense information and served as an agent of the CuIS until her arrest in 2001. During her tenure at the DIA, Montes disclosed the identities of U.S. intelligence officers and provided other classified national defense information to the CuIS.
During this timeframe, Velazquez allegedly continued to serve the CuIS, receiving instructions from the CuIS through encrypted, high frequency broadcasts from her handlers and through meetings with handlers outside the United States.
This case was investigated by the FBI’s Washington Field Office and the DIA. It is being prosecuted by Senior Trial Attorney Clifford Rones of the Counterespionage Section in the Justice Department’s National Security Division, and Assistant U.S. Attorney G. Michael Harvey of the U.S. Attorney’s Office for the District of Columbia.
The charges contained in an indictment are merely allegations and each defendant is presumed innocent unless and until proven guilty in a court of law.
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Indictment
Supervisor of $63 Million Health Care Fraud Scheme ConvictedRead the Press Release
A federal jury today convicted a Miami-area supervisor of a mental health care company, Health Care Solutions Network (HCSN), for helping to orchestrate a fraud scheme that crossed state lines and that resulted in the submission of more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
The announcement was made by Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigation’s Miami office.
After a five-day trial, a jury in the Southern District of Florida found Wondera Eason, 51, guilty of conspiracy to commit health care fraud. Sentencing is scheduled for July 8, 2013.
Eason was employed as the Director of Medical Records at HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness. In Florida, HCSN operated community mental health centers at two locations. After stealing millions from Medicare and Medicaid in Florida, HCSN’s owner, Armando Gonzalez, exported the scheme to North Carolina, opening a third HCSN location in Hendersonville.
Evidence at trial showed that at all three locations, Eason, a certified medical records technician, oversaw the alteration, fabrication, and forgery of thousands of documents, which purported to support the fraudulent claims HCSN submitted to Medicare and Florida Medicaid. Many of these medical records were created weeks or months after the patients were admitted to HCSN facilities in Florida for purported PHP treatment and were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Florida Medicaid. Eason directed therapists to fabricate documents, and she also forged the signature of therapists and others on documents that she was in charge of maintaining. Eason interacted with Medicare and Medicaid auditors, providing them with false and fraudulent documents, while certifying the documents were accurate.
The “therapy” at HCSN oftentimes consisted of nothing more than patients watching Disney movies, playing bingo and having barbeques. Eason directed therapists to remove any references to these recreational activities in the medical records.
According to evidence at trial, Eason was aware that HCSN in Florida paid illegal kickbacks to owners and operators of Miami-Dade County Assisted Living Facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Eason also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.
From 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
Fifteen defendants have been charged for their alleged roles in the HCSN health care fraud scheme, and 12 defendants have pleaded guilty. On Monday, Feb. 25, 2013, Gonzalez was sentenced to serve 168 months in prison for his role in the scheme. Alleged co-conspirators Alina Feas and Lisset Palmero are scheduled for trial on June 3, 2013. Defendants are presumed innocent until proven guilty at trial.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. This case was prosecuted by Trial Attorneys Allan J. Medina and Steven Kim, former Special Trial Attorney William Parente and Deputy Chief Benjamin D. Singer of the Criminal Division's Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Southern California Physician and Two Co-Conspirators Found Guilty for Roles in $1.5 Million Medicare Fraud SchemeRead the Press Release
A Southern California physician, a durable medical equipment (DME) supply company employee and a health care professional were found guilty late yesterday by a federal jury in Los Angeles for their roles in a $1.5 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Criminal Division; U.S. Attorney for the Central District of California André Birotte Jr.; Bill L. Lewis, Assistant Director in Charge of the FBI’s Los Angeles Field Office; and Glenn R. Ferry, Special Agent in Charge of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).
Godwin Onyeabor, 49, of Ontario, Calif., Sri J. Wijegunaratne, 58, of Anaheim, Calif., and Heidi Morishita, 48, of Valencia, Calif., were each found guilty in U.S. District Court in the Central District of California of one count of conspiracy to pay and receive kickbacks. Wijegunaratne was also found guilty of conspiracy to commit health care fraud and six substantive counts of health care fraud. Onyeabor was also found guilty of conspiracy to commit health care fraud and 11 substantive counts of health care fraud.
The trial evidence showed that between January 2007 and February 2012, Onyeabor, an officer at Fendih Medical Supply Inc., a DME supply company located in San Bernadino, Calif., and others paid cash kickbacks to Wijegunaratne, a physician, and Morishita for fraudulent prescriptions for DME, including power wheelchairs. The evidence showed that Wijegunaratne wrote prescriptions for power wheelchairs and other DME that Medicare beneficiaries did not need and sometimes never used. After receiving prescriptions from Wijegunaratne and Morishita, Onyeabor and others used the prescriptions to fraudulently bill Medicare for the medically unnecessary DME.
At trial, several Medicare beneficiaries testified that they were lured to medical clinics with the promise of free items such as vitamins and juice, only to receive power wheelchairs that they did not need and did not want. The beneficiaries further testified that their attempts to reject delivery of the power wheelchairs from Onyeabor’s supply company were unsuccessful.
As a result of this fraud scheme, Onyeabor, Wijegunaratne and others submitted and caused the submission of approximately $1.5 million in false and fraudulent claims to Medicare, and received almost $1 million on those claims.
At sentencing, scheduled for Sept. 9, 2013, Onyeabor, Wijegunaratne and Morishita face a maximum penalty of 10 years in prison and a $250,000 fine for each count.
The case is being prosecuted by Assistant Chief Benton Curtis and Trial Attorneys Fred Medick and Alexander Porter of the Criminal Division’s Fraud Section. The case was investigated by the FBI and the Los Angeles Region of HHS-OIG.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Propietario En Delano Sentenciado A 60 AÑos De Prision Por Producir Pornografia Infantil Fresno, Tulare Y KernRead the Press Release
Fresno, California -- José Hernàndez-Velàzquez, de 55 años, residente de Van Nuys y dueño de una propiedad de alquiler en Delano, fue sentenciado hoy a 60 años de prisión por el Juez de Distrito de los Estados Unidos Lawrence J. O’Neill, anunció Benjamin B. Wagner Fiscal de los Estados Unidos. El 12 de diciembre de 2012, un jurado federal encontró a Hernàndez-Velàzquez culpable de 4 cargos separados de producir pornografía infantil.
El Fiscal de los Estados Unidos Wagner afirmó: “La sentencia de prisión dictada hoy, niega a Hernàndez-Velàzquez la oportunidad de depredar a màs niños. Aquellos que cometen delitos similares deben esperar por seguro que seràn encontrados, procesados y removidos de la sociedad"
“Como esta sentencia muestra con toda claridad, los predadores infantiles recibiràn la justicia que merecen por sus despreciables acciones,” dijo Michael Toms, agente residente encargado de HSI Bakersfield. “Continuaremos persiguiendo agresivamente a aquellos que depredan y explotan sexualmente a nuestros hijos. Se lo debemos a las jóvenes víctimas de estos casos, quienes llevaràn consigo las cicatrices emocionales y físicas de estos delitos durante el resto de sus vidas.”
De acuerdo con los documentos del tribunal, Hernàndez-Velàzquez produjo videos e imàgenes entre enero de 2010 y febrero de 2011 que incluían representaciones de él participando en actos sexuales con cuatro víctimas menores diferentes de edades comprendidas entre los 3 y los 14 años. De acuerdo con los registros del tribunal, la investigación comenzó con una pista dada por una persona particular. En 24 horas, los investigadores tomaron posesión de la càmara y los dispositivos de almacenamiento de datos de Hernàndez-Velàzquez, determinaron el lugar de los delitos, identificaron a las víctimas, y obtuvieron de él declaraciones incriminatorias. Los delitos se produjeron en Delano donde Hernàndez-Velàzquez era el dueño de una propiedad de alquiler.
A la conclusión de la vista de sentencia, el Juez O’Neill informó a Hernàndez-Velàzquez que era su intención que “nunca se le permitiera estar en ninguna parte cerca de un niño. Usted ha arruinado ya bastantes vidas.” Hernàndez-Velàzquez ha estado bajo custodia desde su arresto el 9 de marzo de 2011.
Este caso fue producto de una intensa investigación por parte de las oficinas del Servicio de Inmigración y Control de Aduanas de los EE.UU. (ICE) de Bakersfield y Los Ángeles, La Oficina de Investigaciones de Seguridad Nacional (HSI), el Departamento de Policía de Los Ángeles, y el Departamento de Policía de Delano. El Fiscal Adjunto de los EE.UU., Brian W. Enos, procesó el caso.
Este caso fue entablado como parte del Proyecto de Infancia Segura, una iniciativa nacional lanzada en mayo de 2006 por el Departamento de Justicia para combatir la epidemia creciente de explotación y abuso sexual de menores. Fue conducida por las Oficinas de los Fiscales de los Estados Unidos y la Sección de Explotación y Obscenidad Infantiles de la División Criminal, agentes federales del Proyecto Infancia Segura y recursos federales, estatales y locales con el fin de localizar, arrestar y procesar a aquellos que explotan sexualmente a niños, y para identificar y rescatar a las víctimas. Para màs información acerca del Proyecto Infancia Segura, por favor visite www.usdoj.gov/psc. Haga clic en la pestaña “recursos” para información sobre educación de seguridad en Internet.
New Jersey Investor Pleads Guilty for Role in Bid-Rigging Scheme at Municipal Tax Lien AuctionsRead the Press Release
A financial investor who purchased municipal tax liens pleaded guilty today for his role in a conspiracy to rig bids for the sale of tax liens auctioned by municipalities in New Jersey, the Department of Justice announced.
A felony charge was filed today in U.S. District Court for the District of New Jersey in Newark, against Norman T. Remick, of Barnegat, N.J. According to the charge, from in or about the beginning of 2007 until approximately February 2009, Remick participated in a conspiracy to rig bids at auctions for the sale of municipal tax liens in New Jersey by agreeing to allocate among certain bidders which liens each would bid on. The department said that Remick proceeded to submit bids in accordance with the agreements and purchased tax liens at collusive and non-competitive interest rates.
“The conspirators illegally met and engaged in anticompetitive discussions to allocate bids amongst themselves at tax lien auctions in New Jersey, depriving distressed homeowners of competitive interest rates at a time when they most needed them,” said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “Prosecuting these types of bid-rigging schemes remains a top priority for the division.”
The department said that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected municipal tax liens offered at public auctions at non-competitive interest rates. When the owner of real property fails to pay taxes on that property, the municipality in which the property is located may attach a lien for the amount of the unpaid taxes. If the taxes remain unpaid after a waiting period, the lien may be sold at auction. State law requires that investors bid on the interest rate delinquent property owners will pay upon redemption. By law, the bid opens at 18 percent interest and, through a competitive bidding process, can be driven down to zero percent. If a lien remains unpaid after a certain period of time, the investor who purchased the lien may begin foreclosure proceedings against the property to which the lien is attached.According to the court documents, Remick was involved in a conspiracy with others not to bid against one another at municipal tax lien auctions in New Jersey. Since the conspiracy permitted the conspirators to purchase tax liens with limited competition, each conspirator was able to obtain liens that earned a higher interest rate. Property owners were, therefore, made to pay higher interest on their tax debts than they would have paid had their liens been purchased through open and honest competition, the department said.
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 a Sherman Act violation 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 the $1 million statutory maximum.Today’s plea is the 12th guilty plea resulting from an ongoing investigation into bid rigging or fraud related to municipal tax lien auctions. Eight individuals – Isadore H. May, Richard J. Pisciotta Jr., William A. Collins, Robert W. Stein, David M. Farber, Robert E. Rothman, Stephen E. Hruby and David Butler – and three companies – DSBD LLC, Crusader Servicing Corp. and Mercer S.M.E. Inc. – have previously pleaded guilty as part of this investigation.
Today’s charge was brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’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.
This ongoing investigation is being conducted by the Antitrust Division’s New York Office and the FBI’s Atlantic City, N.J., office. Anyone with information concerning bid rigging or fraud related to municipal tax lien auctions should contact the Antitrust Division’s New York Field Office at 212-335-8000, visit www.justice.gov/atr/contact/newcase.htm or contact the Atlantic City Resident Agency of the FBI at 609-677-6400.
Justice Department Reaches Agreement with Indiana School District to Provide a Safe and Supportive Learning Environment for All StudentsRead the Press Release
The Justice Department announced today that it reached a settlement agreement with the Metropolitan School District of Decatur Township, Ind., to prevent and respond to peer on peer harassment in schools.
The agreement resolves the department’s review of the district’s policies and practices related to harassment and bullying, which was initiated in June 2011 after reports of possible racial harassment at a district school. Under the agreement, the district will work closely with the Great Lakes Equity Center, a federally funded resource center at Indiana University-Purdue University Indianapolis, to take a number of steps to prevent and address harassment based on race, color, national origin, sex, religion and disability, and to ensure a safe and supportive learning environment for all students.
Among other things, the district will: form a district-wide anti-harassment task force, which will review and revise the district’s policies and procedures related to harassment, bullying and discipline; establish a cohesive process for receiving, investigating and monitoring complaints of harassment and bullying, enabling the district to track repeated incidents involving individual students or groups targeted for their membership in a protected class; and provide training, professional development and school climate assessments for both students and staff at two of the district’s schools.
“This agreement provides a template for school districts throughout Indiana and across the country in establishing an across the board strategy for preventing and addressing harassment and bullying,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “We applaud the district for taking affirmative steps to foster a safe and inclusive climate for learning.”
Throughout the country, school districts are expanding efforts to prevent and respond to bullying. Student misconduct that falls under a school’s anti-bullying policy also may trigger the school district’s obligations to combat discrimination and harassment under one or more of the federal civil rights laws. Today’s agreement will provide a roadmap for districts working to ensure that their critical bullying prevention efforts are consistent with their obligations under federal law, including Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, national origin, religion and sex, in public schools.
The enforcement of Title IV is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt .
Related Materials:
Decatur Agreement
Justice Department Reaches Agreement with City of Falls Church, Va., on Bailout Under the Voting Rights ActRead the Press Release
The Justice Department announced today that it has reached an agreement with the city of Falls Church, Va., that will allow for the city, a covered jurisdiction under the special provisions of the Voting Rights Act, to bail out from coverage under these provisions. Bailout will exempt the city of Falls Church, along with the Falls Church City Public School District, 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.
The city of Falls Church filed its bailout action in the U.S. District Court for the District of Columbia on Feb. 15, 2013. Counsel for the city contacted the Attorney General prior to filing the action, indicating that the city was interested in seeking bailout. The city provided the Justice Department with substantial information, and the department conducted an investigation to determine the city’s eligibility. Based on that investigation, the department is satisfied that the city of Falls Church meets the Voting Rights Act’s requirements for bailout.
“In the department’s view, the city of Falls Church has met the requirements necessary for bailout. We reached this conclusion after thoroughly reviewing information provided by the city and information gathered during the Department’s independent investigation,” said Matthew Colangelo, Deputy Assistant Attorney General for the Civil Rights Division. “We appreciate the city’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 city’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 city that would have originally precluded the city 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.
Related Materials:
Falls Church Joint Motion and Consent Decree
Former Town Creek, Ala., Police Officer Pleads Guilty to Assaulting an ArresteeRead the Press Release
Brandon Shane Mundy, a former police officer of numerous law enforcement agencies, the most recent being the Town Creek, Ala., Police Department, pleaded guilty today to violating the civil rights of a man during the course of an arrest. According to information presented to the court, on Nov. 22, 2009, Mundy was involved in a vehicle pursuit and fired shots at a man’s vehicle before later ramming it and causing it to wreck in a ditch. While another police officer reached the man and placed him under arrest without resistance, Mundy ran up and unjustifiably and repeatedly beat the man in the head with an object that was either a baton or a flashlight causing the man to suffer physical injury. After Mundy lost control of the object, Mundy continued to strike the man in the head with his fist.
“The use of excessive force cannot be tolerated,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “The vast majority of police officers do an outstanding job in protecting both the community and the rights of the accused, even in stressful situations. But when police officers use excessive force to punish arrestees, they will be held accountable.”
“Police officers who abuse their power in order to assault citizens undermine the system of constitutional government they are sworn to uphold,” said Joyce White Vance, U.S. Attorney for the Northern District of Alabama. “As the plea in this case shows, my office will work closely with the Justice Department’s Civil Rights Division to aggressively enforce the laws that prohibit police misconduct.”
Mundy faces a statutory maximum sentence of 10 years in prison. A sentencing date has not yet been set.
This case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Elizabeth Holt of the Northern District of Alabama and Civil Rights Division Trial Attorney Daniel H. Weiss.
Criminal Complaint Filed Against Tinian Casino and Two Men in Investigation of Failure to File Currency Transaction ReportsRead the Press Release
ALICIA A. G. LIMTIACO, United States Attorney for the Districts of Guam and the
Northern Mariana Islands, announced that a criminal complaint was filed against two individuals and a corporation on April 19, 2013. A copy of the unsealed complaint is attached. The complaint charges GEORGE QUE, TIM BLYTHE, and the entity known as HONG KONG ENTERTAINMENT (OVERSEAS) INVESTMENTS, LTD. dba TINIAN DYNASTY HOTEL & CASINO with conspiracy to cause a financial institution to fail to file currency transaction reports and causing a financial institution to fail to file currency transaction reports. The maximum sentence for each offense is imprisonment for not more than 10 years, a fine of not more than $500,000 for an individual, and a fine of not more than $1,000,000 for a corporation.Federal law requires that a Currency Transaction Report (CTR) be filed with the IRS by financial institutions, including casinos, in regard to any currency transaction over $10,000.
According to the criminal complaint, beginning in or around September 2009 and continuing through the present, the TINIAN DYNASTY HOTEL & CASINO engaged in a pattern of accommodating gamblers in conducting transactions involving more than $10,000 without filing CTRs with the government. Defendants BLYTHE and QUE allegedly did not file any CTRs or cause anyone else to do so, despite their knowledge of the reporting requirement.
The criminal complaint alleges that in May 2012, IRS Criminal Investigation initiated an undercover operation concerning possible illegal activities at the TINIAN DYNASTY HOTEL & CASINO by having two agents pose as gamblers wishing to use large amounts of currency but not wanting any reports filed with the government about their use of cash. Between February 28, 2013, and March 4, 2013, HONG KONG ENTERTAINMENT (OVERSEAS) INVESTMENTS, LTD. dba TINIAN DYNASTY HOTEL & CASINO, GEORGE QUE, and TIM BLYTHE caused the TINIAN DYNASTY HOTEL & CASINO to fail to file required CTRs related to nine transactions involving undercover IRS agents. Each of these transactions, individually, exceeded the reporting threshold for CTRs.
The criminal complaint states that, upon conviction, HONG KONG ENTERTAINMENT (OVERSEAS) INVESTMENTS, LTD. dba TINIAN DYNASTY HOTEL & CASINO, GEORGE QUE, and TIM BLYTHE would forfeit their interest in two bank accounts held in Guam, two bank accounts held in Saipan, and in the TINIAN DYNASTY HOTEL & CASINO.
This Thursday morning, April 25, 2013, federal agents executed a federal search warrant on the TINIAN DYNASTY HOTEL & CASINO. In conjunction with the search warrant execution, QUE was arrested. Federal agents also executed warrants to seize property subject to forfeiture at the TINIAN DYNASTY HOTEL & CASINO, and its bank accounts.
QUE appeared in court this afternoon before Designated Judge Robert C. Naraja who ordered that he be released on conditions including verification of location monitoring at his residence by the U.S. Probation Office. An arrest warrant is outstanding for BLYTHE. Chief Judge Ramona V. Manglona of the District Court of the NMI issued a summons requiring the corporate representative of HONG KONG ENTERTAINMENT (OVERSEAS) INVESTMENTS, LTD. dba TINIAN DYNASTY HOTEL & CASINO to appear in court on May 3, 2013, at 9:00 a.m.
Kenneth J. Hines, Special Agent in Charge of IRS CI in the Pacific Northwest region said that, “Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities. IRS Criminal Investigation is committed to enforcing these laws and following the money, wherever it leads.”
“CTRs are important law enforcement tools for uncovering criminal activity. Individuals and financial institutions who seek to evade the federal reporting requirements will be pursued by the Department of Justice and its partners in federal law enforcement,” said U.S. Attorney Alicia A.G. Limtiaco.
The case is being investigated by IRS Criminal Investigation. The Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Marshals Service, and Homeland Security Investigations assisted IRS CI in the execution of the search warrant. The United States Coast Guard assisted in transporting the federal agents from Saipan to the TINIAN DYNASTY HOTEL & CASINO.A criminal complaint is only a charge, and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Complaint
California CPA Sentenced to Two Years in Prison and Ordered to Pay Restitution for Role in Stolen Identity Tax Refund SchemeRead the Press Release
Masood Chotani, a certified public accountant from Los Angeles , was sentenced today to 24 months in prison, followed by one year of supervised release, the Justice Department and Internal Revenue Service (IRS) announced. Chotani was also ordered to pay $60,705 in restitution to the IRS.
On June 23, 2010, Chotani was indicted by a federal grand jury on charges of engaging in a scheme to file false tax returns with the IRS using the names and Social Security numbers of deceased individuals. He pleaded guilty to conspiracy to defraud the United States on January 15, 2013.
According to the indictment and the plea agreement, in 2002 and 2003, Chotani misappropriated employer identification information from his client files and provided them to his co-conspirators, Haroon Amin and Ather Ali. Amin and Ali then prepared and filed fraudulent tax returns falsely stating that these deceased individuals earned wages from which income tax had been withheld. As part of the scheme, Chotani caused 47 tax returns to be filed with the IRS claiming an aggregate of $372,558 in false refunds. Although the IRS rejected the bulk of the refund claims filed in the scheme, a number of refund checks were issued and delivered to addresses controlled by Amin, Ali, and their co-conspirators, including various mailboxes opened by Ali. Most of these refund checks then were delivered overseas to be deposited in bank accounts in Armenia and Pakistan. Chotani admitted that he was a knowing participant in this scheme.
Amin and Ali are serving prison sentences of 30 and 37 months, respectively.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, commended the efforts of agents from the IRS Criminal Investigation Division in Laguna Niguel, Calif., as well as Assistant U.S. Attorney Charles E. Pell and Tax Division Trial Attorneys Joseph A. Rillotta and Ignacio Perez de la Cruz, who prosecuted the case.
More information about the Tax Division and its enforcement efforts is available at www.usdoj.gov/tax .
United States Attorney Co-Sponsors State and Local Anti-Terrorism Training (SLATT) on Guam and the NMI (Amended)Read the Press Release
Alicia A. G. Limtiaco, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced today that after a year of planning, the State and Local AntiTerrorism Training (SLATT) Program has finally come to the Marianas. With the assistance of the U.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 Homeland Security and Emergency Management, and the U.S. Department of Justice's Bureau of Justice Assistance (BJA) Program, two instructors from the Institute for Intergovernmental Research (IIR) were on Guam April23 to 24, 2013, and will be in the NMI on April25 to 26,2013, to conduct the SLATT workshops to law enforcement, hotel and private security, military anti-terrorism personnel and other community leaders. Over 160 individuals attended the training in Guam and about 150 have registered to attend in Saipan.
U.S. Attorney General Eric Holder presented a special message addressing the SLATT participants and thanking them for their efforts to safeguard our communities in Guam and the NMI, and our nation.
"April is National Crime Victims' Rights Week. We observe a moment of silence for the victims of the Boston Marathon bombing and for all victims of terrorism, and their families; and for our Fallen Soldiers who through their commitment and sacrifice continue to protect the freedoms exercised by all Americans," stated U.S. Attorney Limtiaco.
U.S. Attorney Limtiaco further stated, "As part of our Secure Communities partnership with the U.S. Department of Homeland Security, the U.S. Attorney's Office has been collaborating with the U.S. Department of Justice Bureau of Justice Assistance Program and Institute for Intergovernmental Research, Guam Homeland Security/Office of Civil Defense, and Commonwealth ofthe Northern Mariana Islands (CNMI) Homeland Security and Emergency Management, to bring the State and Local Anti-Terrorism Training (SLATT) program to Guam and the CNMI. At this training, community partners have the opportunity to discuss domestic terrorism, international terrorism, indicators of terrorism, and the Suspicious Activity Community Program, which promotes law enforcement safety and de-confliction, and provides assistance to our federal, military and local law enforcement partners and the Marianas Regional
Fusion Center -- recently designated as the 781 h fusion center in the nation, in preventing, reducing and combating some of the most concerning threats to our national security.""Since 9/11, there have been extraordinary and unprecedented efforts taken to keep America safe - including those by our own sons and daughters of the Pacific who serve in the military, as law enforcement, in the intelligence community, and as first responders. We also know that there is more work that must be done. Meeting these public safety and national security challenges of the 21st Century will require us to identify new enforcement strategies, to forge new partnerships, and to provide more support for our law enforcement communities. Our people in Guam and the Northern Mariana Islands, and our Pacific island neighbors are resilient. Terrorists aim to instill fear in our people, and to overturn our way of life. Just as earlier generations of Americans overcame great tests, so must we draw on the resilience of the American people to overcome the challenges of our time. Our communities are capable of
withstanding whatever dangers may come. Today, threats from terrorists and extremists continue against our nation and the Asia-Pacific region. Our work against terrorism cannot be done without the continued involvement, leadership, vigilance and partnership of our community stakeholders," said U.S. Attorney Limtiaco.U.S. Attorney Limtiaco gave special thanks to the Guam Homeland Security/Office of Civil Defense and the CNMI Homeland Security and Emergency Management for their assistance in planning the training and for securing the venues for this important training.
Justice Department Releases Updated Protocol to Improve Standards for Responding to Rape and Sexual AssaultRead the Press Release
Attorney General Eric Holder today announced a revised version of the National Protocol for Sexual Assault Medical Forensic Examinations (SAFE Protocol, 2d.) The SAFE Protocol is a voluntary best practices guide to conducting sexual assault medical forensic examinations protocols. These suggested practices will promote high-quality, sensitive, and supportive exams for all victims of rape and sexual assault.
The SAFE Protocol is based on the latest scientific evidence and provides recommendations to standardize the quality of care for sexual assault victims throughout the country. By promoting thorough, sensitive evidence collection, the SAFE Protocol can improve the criminal justice response to rape and sexual assault to increase offender accountability.
“The SAFE protocol is crucial to our efforts to end sexual violence,” said Attorney General Holder. “It is our responsibility to ensure that victims feel comfortable coming forward. The SAFE Protocol helps us coordinate and improve our response when these courageous individuals do seek help from first responders including nurses, doctors, advocates, law enforcement, and prosecutors.”
In the nine years since the protocol was initially released in 2004, there have been substantial forensic medical advancements. This revised edition of the protocol maintains the same commitments of standardization and quality as the first SAFE Protocol, but is updated to reflect current technology. It also increases the emphasis on victim-centered care and includes additional information reflecting changes from the Violence Against Women Act of 2005.
Research shows that programs with trained examiners, such as Sexual Assault Nurse Examiners (SANEs) or Sexual Assault Forensic Examiners (SAFEs), using modern standards like those in the SAFE Protocol significantly increase evidence collection and investigation in sexual assault cases. Better evidence collection results in significantly higher prosecution rates, convictions, and guilty-pleas. The SAFE Protocol also helps SANEs and other medical professionals conduct exams that are sensitive, dignified, and reduce trauma.
“The SAFE Protocol helps ensure that victims will be cared for with compassion and respect when they turn to hospitals for help,” said Bea Hanson, Acting Director of the Office on Violence Against Women (OVW). “This not only improves outcomes for victims, it strengthens criminal cases. We are working to develop a comprehensive response to rape and sexual assault. One element of this is the President’s 2014 budget that includes $20 million to address the backlog of rape kits.”
The revised SAFE Protocol reflects the many important improvements that can help increase the quality of the services victims receive. The updated protocol has increased information on populations with special needs, such as victims with limited English proficiency; victims with disabilities; American Indian and Alaska Native victims; victims in the military; and lesbian, gay, bisexual or transgender victims. It also has expanded information on topics such as drug and alcohol facilitated sexual assault, pregnancy, confidentiality and alternative reporting procedures.
The SAFE Protocol is not a requirement for any federal grant funding. Adherence to the protocol is not mandatory with the exception of the recently released Department of Defense Instruction on Sexual Assault Prevention and Response Program Procedures. In addition, to comply with the department’s National Standards to Prevent, Detect and Response to Prison Rape, correctional facilities that are responsible for investigating allegations of sexual abuse in their facilities must use a protocol that is adapted from or otherwise based on the SAFE Protocol or similarly comprehensive and authoritative protocols developed after 2011.
According to the Centers for Disease Control and Prevention, one in five women and one in 71 men have been raped in their lifetimes, and nearly 1.3 million women in the U.S. are raped every year. More than one in four American Indian or Alaska Native women have been raped. Sexual assault and rape are pervasive crimes that threaten the safety of all communities. The SAFE Protocol is an important step forward in the Department of Justice’s efforts to end sexual violence.
OVW, a component of the U.S. Department of Justice, provides leadership in developing the nation’s capacity to reduce violence against women through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing 22 federal grant programs, OVW often undertakes initiatives in response to special needs identified by communities facing acute challenges. More information is available at www.ovw.usdoj.gov.
The SAFE Protocol is accessible at the National Criminal Justice Reference Service website at: www.ncjrs.gov/pdffiles1/ovw/241903.pdf.
Detroit Home Health Company Employee Pleads Guilty for Role in Medicare Fraud SchemeRead the Press Release
An employee of Detroit medical service companies that fabricated patient visit notes and other documents as part of a $24 million home health care fraud scheme pleaded guilty today for her role in the conspiracy, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office.
Dana Sharma, 30, of Detroit, pleaded guilty before U.S. District Judge Denise Hood in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.
According to court documents, Sharma worked at purported home health companies, including First Choice Home Health Care Services Inc. and Reliance Home Care LLC, where she and other conspirators agreed to submit false and fraudulent claims to Medicare for home health services. Court documents reveal that, among other things, Sharma organized and maintained company patient files, knowing that these files contained falsified patient visit notes that created the false impression that home health care had been provided to patients. Sharma admitted that she knew that these documents would be used by these companies to submit claims to Medicare for home health services that were not medically necessary and/or not provided.
Court documents allege that between January 2007 and May 2012, Sharma’s conduct caused home health companies to submit claims to Medicare for services that were not medically necessary and/or not provided, which in turn caused Medicare to pay these companies approximately $923,286.
At sentencing, scheduled for Aug. 1, 2013, Sharma faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is being prosecuted by Trial Attorney William G. Kanellis and Deputy Chief Gejaa Gobena of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Alabama Man Sentenced to Federal Prison for Stolen Identity Refund FraudRead the Press Release
Kenneth Jerome Blackmon Jr., a resident of Montgomery, Ala., was sentenced today to 51 months in prison, the Justice Department and the Internal Revenue Service (IRS) announced.
In January 2013, Blackmon pleaded guilty to aggravated identity theft and access device fraud. According to court documents, Blackmon was involved in a scheme to use stolen identities to file false federal income tax returns with the IRS. He admitted to acquiring names and Social Security numbers, to using that identity information on false tax returns, and to directing fraudulent tax refunds onto debit cards. Blackmon also admitted to possessing at least 15 Social Security numbers for the purpose of obtaining fraudulent tax refunds from the IRS.
In addition to prison time, Blackmon was ordered to pay $197,839 in restitution to the IRS and to serve three years of supervised release following his release from federal custody.
Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally and U.S. Attorney for the Middle District of Alabama George L. Beck Jr., commended the efforts of IRS – Criminal Investigation special agents in investigating the case, Tax Division Trial Attorneys Justin Gelfand and Jason Poole in prosecuting the case, and the Alabama Department of Pardons and Paroles and the Gwinnett County, Ala., Sheriff’s Department in Georgia in assisting federal authorities with the investigation.
Former North Las Vegas Corrections Officer Indicted on Excessive Force and Obstruction ChargesRead the Press Release
The Department of Justice today announced that a federal grand jury sitting in Las Vegas has indicted a former North Las Vegas corrections officer on federal civil rights and obstruction of justice charges. Stuart Barlow Johnson, 47, was indicted on one count of violating the victim’s civil rights by using excessive force on the victim and one count of obstruction of justice for falsifying an incident report in an attempt to cover up the incident.
The indictment alleges that on Nov. 29, 2008, while acting as a corrections officer at the North Las Vegas Detention Center, Johnson assaulted an unnamed victim, identified as “D.H.,” resulting in bodily injury to D.H. The obstruction count alleges that on the same day, Johnson knowingly falsified a document with the intent to impede, obstruct and influence the investigation and proper administration of a matter within the jurisdiction of the FBI.
If convicted, the defendant faces a statutory maximum penalty of 10 years in prison on the civil rights count and a statutory maximum penalty of 20 years in prison on the obstruction count.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Las Vegas division of the FBI. It is being prosecuted by Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada and Trial Attorneys Ryan Murguía and Patricia Sumner of the Criminal Section of the Civil Rights Division of the Department of Justice.
Florida Man Nets Federal Prison for Felony Election OffenseRead the Press Release
Jay Odom, 56, of Destin, Fla., was sentenced today by Senior U.S. District Judge Lacey A. Collier to six months in federal prison for his conviction on one count of causing a presidential campaign committee to make a false statement to the Federal Election Commission (FEC). Additionally, Judge Collier ordered Odom to pay a fine of $46,000 and a Special Monetary Assessment of $100 for the felony conviction. The sentencing was announced this afternoon by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Robert O. Davis, Acting U.S. Attorney for the Northern District of Florida.
According to court documents, in approximately December 2007, Odom directly and indirectly solicited employees of his business entities and their family members to each make the maximum allowable contributions to the authorized campaign committee of a presidential candidate. The employees were encouraged to make these donations with the understanding that Odom would advance funds to or reimburse these individuals for their contributions. During his guilty plea on February 12, 2013, Odom admitted to both knowing that this activity was illegal and intending to conceal the true source and amount of the campaign contributions.
In 2007, Odom directly or indirectly used personal funds to reimburse individual contributions to the authorized campaign committee of the presidential candidate for a total of $23,000. As a result of this scheme, Odom intentionally caused the presidential candidate’s authorized campaign committee to file a report with the FEC that falsely stated that 10 individual donors had made federal campaign contributions when in fact each contribution was made by Odom.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Randall J. Hensel and Trial Attorney Brian K. Kidd of the Criminal Division’s Public Integrity Section.
California Woman Pleads Guilty to Feeding Whales in Marine SanctuaryRead the Press Release
A California woman pleaded guilty to illegally feeding killer whales in the wild this Tuesday in federal court in San Jose, Calif., the Department of Justice Environment and Natural Resources Division and the U.S. Attorney’s Office for the Northern District of California announced.
Nancy Black of Monterey, Calif. pleaded guilty to one count of violating the Marine Mammal Protection Act (MMPA), specifically the MMPA’s feeding prohibition. The MMPA regulations make it a crime to feed marine mammals in the wild. The prohibition applies to commercial and recreational boaters, and applies to all species of marine mammals.
Killer whales (orcas) prey on gray whales in the Monterey Bay National Marine Sanctuary. On the occasions when orcas manage to kill a gray whale, the pod of orcas does not always eat all of the gray whale at once. Often, portions of the carcass, including strips and chunks of blubber (some over six feet in length and weighing over a hundred pounds), remain floating or semi-submerged after a kill. Orcas and sea birds feed on these chunks of blubber while they are still available in the area.
According to the factual basis of the plea agreement, on or about April 25, 2004, Black was on her boat in the Monterey Bay National Marine Sanctuary, when she and her assistants encountered a place where orcas had killed a gray whale calf. She was observing the orcas as they fed on pieces of gray whale blubber that were floating in the water. In an effort to facilitate their viewing, she or her crew grabbed the blubber, cut a hole through the corner of the blubber chunk, and ran a rope through the piece of the blubber. Shortly thereafter, they returned the blubber to the water and monitored the feeding behavior of the orcas as they ate the blubber off of the rope. Black and her crew repeated the process with the rope and other pieces of the blubber. In court papers, Black admitted that she did not have a permit that would have allowed her to engage in this conduct. She also admitted that on or about April 11, 2005, she was involved in a similar incident involving the collection of floating blubber and offering it to orcas utilizing the same rope method.
In a separate incident on or about Oct. 24, 2005, Nancy Black met with a sanctuary officer and a National Oceanic and Atmospheric Administration (NOAA) investigative agent at their offices in Monterey. The sanctuary officer was investigating a reported harassment of an endangered humpback whale earlier that month in the Monterey Bay National Marine Sanctuary. The interaction with the humpback whale was filmed by one of Black’s crewmembers. Before Oct. 24, the sanctuary officer had previously asked Black to provide the videotape of the humpback whale encounter.
Black voluntarily agreed to provide the videotape, but prior to doing so she edited the video footage to remove several minutes that included footage of the humpback whale between two vessels that belonged to Black’s whale watching business, among other footage, and sounds. Black did not tell the officer that she had edited the tape. In filed court papers, Black admitted that by not disclosing the editing of the video, she could have impeded or influenced NOAA's investigation into the humpback whale incident.
Sentencing in the case is set for Aug. 6, 2013.
The case was investigated by agents of the National Oceanic and Atmospheric Administration and the FBI with support from enforcement personnel from the Monterey Bay National Marine Sanctuary. The case was prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division, and Jeffrey Schenk of the U.S. Attorney’s Office in San Jose, California.
Related Materials:
Plea Agreement
Traficante De Marihuana Sentenciado A Mas De 17 AÑos De Prision Fresno, Tulare Y KernRead the Press Release
SACRAMENTO, Calif. – El Juez de Distrito de los Estados Unidos William B. Shubb sentenció el día de hoy a Uriel Ochoa-Espindola, de 44 años, residente de Fresno, a 17 años y medio de prisión por participar en una conspiración de tràfico de marihuana, anunció el Fiscal de los Estados Unidos Benjamin B. Wagner.
De acuerdo con los documentos del tribunal, Espindola era el líder de una operación masiva de producción de marihuana y de una banda interestatal de distribución de droga. Él y sus socios cultivaron decenas de miles de plantas de marihuana en tres condados diferentes en California y enviaron su producto por todo el país con la ayuda de camioneros comerciales. La operación de Espindola tenía su base cerca de Delhi, Calif., pero él controlaba cultivos de marihuana en los Condados de El Dorado, Tehama y Placer. Espindola organizó y dirigió personalmente cientos de libras de envíos de marihuana a Dakota del Sur, Colorado, Massachusetts, Washington, y Carolina del Norte. Espindola tenía 10 hombres bajo su mando. Él tomaba las decisiones clave, asignaba trabajos y organizaba negocios.
Al sentenciar a Espindola, el Juez Shubb dijo que Espindola manejaba una “operación muy seria,” e indicó que el papel de Espindola como líder tuvo un impacto importante en su decisión de sentencia.
De acuerdo con los documentos del tribunal, los investigadores incautaron tres pistolas y casi 11 000 plantas de marihuana en el lugar de cultivo en el Condado de El Dorado. Incautaron casi 17 500 plantas de marihuana en un cultivo en el Condado de Placer, y casi 2 000 plantas de marihuana en el Condado de Tehama.
La organización era bastante grande ya que tenían “gerentes intermedios”, tales como Valentine Ramírez-Cardínez, quien fue sentenciado a 15 años y ocho meses en prisión por dirigir los lugares de cultivo. Estos gerentes intermedios ayudaron a proteger y aislar a Espindola de un posible contacto con las autoridades. Después que 300 libras de su marihuana fueran incautadas por investigadores en Chicago, Espindola se escondió de los agentes encubiertos poniendo a Ramírez-Cardínez como encargado.
De acuerdo con documentos del tribunal, Espindola era “uno de los mayores traficantes de marihuana en el Norte de California.” Él, sus lugartenientes, y sus empleados usaron armas de fuego para promover esa operación. Ademàs de las armas encontradas en el lugar de cultivo del Condado El Dorado y una escopeta descubierta en la casa de Espindola, Ramírez-Cardínez dijo a uno de los oficiales encubiertos que él llevó un rifle de calibre .22 al lugar de cultivo del Condado Placer. Los investigadores encontraron finalmente otras 5 armas de fuego en la casa de Ramírez-Cardínez cuando fue arrestado. Anteriormente, Ramírez-Cardínez entregó a uno de los agentes encubiertos un rifle AK-47. El agente al parecer pagaría por el arma màs tarde.
Durante una audiencia probatoria relacionada con la sentencia, un agente especial del Departamento de Justicia de California testificó que los investigadores también encontraron tres pistolas adicionales, tres rifles AK-47, dos rifles M-16/M-4, cuatro escopetas, y un rifle en un domicilio en Rowland Lane en Corning, Calif. Ésta era una residencia en la que uno de los lugartenientes de Espindola cargaba un camión en conexión con uno de los envíos a través del país. Contrario a los alegatos de la defensa, el Juez Shubb recalcó que “Ésta fue su operación,” e hizo a Espindola responsable de las armas que sus socios y empleados usaron para fomentar la operación.
Este caso fue producto de una intensa investigación por parte de la Agencia Antidrogas de los EE.UU., la Oficina del Alguacil del Condado de El Dorado, la Oficina del Alguacil del Condado de Placer, La Oficina Antinarcóticos del Departamento de Justicia de California y el Equipo de Investigación de Marihuana de la Montaña y el Valle. El Fiscal Adjunto de los Estados Unidos Michael M. Beckwith procesó el caso.
Suspect in Boston Marathon Attack Charged with Using<br /> a Weapon of Mass DestructionRead the Press Release
Attorney General Eric Holder announced today that Dzhokhar A. Tsarnaev, 19, a U.S. citizen and resident of Cambridge, Mass., has been charged with using a weapon of mass destruction against persons and property at the Boston Marathon on April 15, 2013, resulting in the death of three people and injuries to more than 200 people.
In a criminal complaint unsealed today in U.S. District Court for the District of Massachusetts, Tsarnaev is specifically charged with one count of using and conspiring to use a weapon of mass destruction (namely, an improvised explosive device or IED) against persons and property within the United States resulting in death, and one count of malicious destruction of property by means of an explosive device resulting in death. The statutory charges authorize a penalty, upon conviction, of death or imprisonment for life or any term of years. Tsarnaev had his initial court appearance today from his hospital room.
“Although our investigation is ongoing, today’s charges bring a successful end to a tragic week for the city of Boston, and for our country,” said Attorney General Eric Holder. “Our thoughts and prayers remain with each of the bombing victims and brave law enforcement professionals who lost their lives or suffered serious injuries as a result of this week’s senseless violence. Thanks to the valor of state and local police, the dedication of federal law enforcement and intelligence officials, and the vigilance of members of the public, we’ve once again shown that those who target innocent Americans and attempt to terrorize our cities will not escape from justice. We will hold those who are responsible for these heinous acts accountable to the fullest extent of the law.”
“The events of the past week underscore in stark terms the need for continued vigilance against terrorist threats both at home and abroad,” said John Carlin, Acting Assistant Attorney General for National Security. “Friday’s arrest and today’s charges demonstrate what can be achieved by a collaborative, round-the clock response involving law enforcement officers, intelligence professionals, prosecutors and the general public.”
“Today’s charges are the culmination of extraordinary law enforcement coordination and the tireless efforts of so many, including ordinary citizens who became heroes as they responded to the call for help in the hours and days following the Marathon tragedy,” said Carmen Ortiz, U.S. Attorney for the District of Massachusetts. “The impact of these crimes has been far-reaching, affecting a worldwide community that is looking for peace and justice. We hope that this prosecution will bring some small measure of comfort both to the public at large and to the victims and their families that justice will be served. While we will not be able to comment on any possible communications between the suspect and law enforcement at this time, as a general rule, the government will always seek to elicit all the actionable intelligence and information we can from terrorist suspects taken into our custody.”
“The events of this week have moved at a breakneck pace. Yet the one consistent element of this investigation has been the collective efforts of our law enforcement and intelligence partners, working side-by-side, day and night, to identify and find those responsible for this attack, while keeping the public safe,” said Rick DesLauriers, Special Agent in Charge of the FBI’s Boston Division. “We are grateful to the American people for their assistance; we would not be successful without their trust and support. We will continue to investigate this matter with the greatest diligence and expediency, and we will do all that we can to protect those we serve.”
“Friday night’s capture of the suspect brought immediate relief to a community from a public safety viewpoint. However, much work remains and many questions require answers. Today’s charges represent another step on the long road toward justice for the victims of these crimes. On behalf of the citizens of this great Commonwealth, the Massachusetts State Police will continue to work diligently with our federal and local partners to bring this defendant to justice for his alleged acts and ensure the public’s safety,” said Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police.
“Finding the alleged perpetrators of this savage act of terrorism four days after the attack on the City of Boston was a herculean effort and shows the true cooperation and dedication of the law enforcement community,” said Boston Police Commissioner Ed Davis. “We were relentless in our pursuit of the suspects. The arrest of Tsarnaev and today’s charges should send a clear message to those who look to do us harm, the entire law enforcement community will go after you, find you and bring you to justice.”
This investigation was conducted by the FBI’s Boston Division, the Boston Police Department, the Massachusetts State Police, and member agencies of the Boston Joint Terrorism Task Force, which is comprised of more than 30 federal, state and local enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement – Homeland Security Investigations, U.S. Marshals Service, U.S. Secret Service, the Massachusetts Bay Transit Authority and others. In addition, the Watertown Police Department, the Cambridge Police Department, the Massachusetts Institute of Technology (MIT) Police Department, the Boston Fire Department, the National Guard and police, fire and emergency responders from across Massachusetts and New England played critical roles in the investigation and response.
This case is being prosecuted by Assistant U.S. Attorneys William Weinreb and Aloke Chakravarty from the Anti-Terrorism and National Security Unit of the U.S. Attorney’s Office for the District of Massachusetts, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division.
The public is reminded that charges contained in an indictment or criminal complaint are merely allegations, and that defendants are presumed innocent unless and until proven guilty.
Related Materials:
Tsarnaev Complaint
Ralph Lauren Corporation Resolves <br /> Foreign Corrupt Practices Act Investigation <br /> and Agrees to Pay $882,000 Monetary PenaltyRead the Press Release
Ralph Lauren Corporation (RLC), a New York based apparel company, has agreed to pay an $882,000 penalty to resolve allegations that it violated the Foreign Corrupt Practices Act (FCPA) by bribing government officials in Argentina to obtain improper customs clearance of merchandise, announced Mythili Raman, the Acting Assistant Attorney General for the Criminal Division, and Loretta E. Lynch, the United States Attorney for the Eastern District of New York.
According to the agreement, the manager of RLC’s subsidiary in Argentina bribed customs officials in Argentina over the span of five years to improperly obtain paperwork necessary for goods to clear customs; permit clearance of items without the necessary paperwork and/or the clearance of prohibited items; and on occasion, to avoid inspection entirely. RLC’s employee disguised the payments by funneling them through a customs clearance agency, which created fake invoices to justify the improper payments. During these five years, RLC did not have an anti-corruption program and did not provide any anti-corruption training or oversight with respect to its subsidiary in Argentina.
In addition to the monetary penalty, RLC agreed to cooperate with the Department of Justice, to report periodically to the department concerning RLC’s compliance efforts, and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect FCPA violations. If RLC abides by the terms of the agreement, the Department will not prosecute RLC in connection with the conduct.
The agreement acknowledges RLC’s extensive, thorough, and timely cooperation, including self-disclosure of the misconduct, voluntarily making employees available for interviews, making voluntary document disclosures, conducting a worldwide risk assessment, and making multiple presentations to the Department on the status and findings of the internal investigation and the risk assessment. In addition, RLC has engaged in early and extensive remediation, including conducting extensive FCPA training for employees worldwide, enhancing the company’s existing FCPA policy, implementing an enhanced gift policy and other enhanced compliance, control and anti-corruption policies and procedures, enhancing its due diligence protocol for third-party agents, terminating culpable employees and a third-party agent, instituting a whistleblower hotline, and hiring a designated corporate compliance attorney.
In a related matter, the U.S. Securities and Exchange Commission today announced a non-prosecution agreement with RLC , in which RLC agreed to pay $$734,846 in disgorgement and prejudgment interest.
The case is being prosecuted by Trial Attorney Daniel S. Kahn of the Criminal Division’s Fraud Section and Sarah Coyne, Chief of the Business and Securities Fraud Section of the Eastern District of New York. The case was investigated by the FBI’s New York Field Office. The department acknowledges and expresses its appreciation for the assistance provided by the SEC’s Division of Enforcement.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Procesos Penales De Marihuana En Los Condados De Fresno, Tulare Y KernRead the Press Release
FRESNO, Calif. — Cinco casos contra cinco hombres involucrados en operaciones separadas de cultivo de marihuana en los Condados de Fresno, Tulare y Kern se resolvieron hoy en el tribunal federal, anunció el Fiscal de los EE.UU Benjamin B. Wagner.
Fuerzas Especiales Antidroga contra el Crimen Organizado. Caso
(No. 1:11CR93 LJO)
El Juez de Distrito de los EE.UU, Lawrence J. O’Neill. sentenció a Diocelina Bustos Abarca, 40, de Bakersfield, a cinco años y nueve meses de prisión por varios delitos ambientales y de cultivo de marihuana. Le ordenó pagar $25, 941 en restitución al Servicio Forestal de los EE.UU. por el daño causado por las operaciones de cultivo de marihuana.Abarca llamó la atención de las autoridades durante una investigación hecha a Miguel Gómez-Gómez, 27, de Dinuba, quien estaba implicado en una operación masiva de cultivo de marihuana en terrenos públicos en los Condados de Fresno y Madera. Gómez-Gómez y cinco de sus socios fueron posteriormente acusados y condenados en un tribunal federal en Fresno, recibiendo sentencias de hasta 11 años en prisión. Cuando termine su condena en prisión, Abarca serà deportada a México.
Abarca se declaró culpable al comienzo de este año, admitiendo su participación en una conspiración a largo plazo para cultivar, distribuir y poseer con la intención de distribuir marihuana. Ella reconoció su participación en la operación de cultivo de marihuana de Gómez-Gómez, que produjo al menos 49,206 plantas de marihuana, así como otra operación en el Condado de Tulare, que produjo al menos 8, 847 plantas de marihuana. Ambas operaciones utilizaron terrenos públicos en el Bosque Nacional Sequoia y causó daños importantes a la tierra y a los recursos naturales.
Este caso fue el producto de una investigación hecha por la Administración de Control de Drogas de los EE.UU. (DEA), el Servicio de Inmigración y Control de Aduanas (ICE), la Oficina de Investigaciones del Departamento de Seguridad Nacional (HSI), bajo el programa de Fuerzas Especiales Antidroga contra el Crimen Organizado (OCDETF). El programa OCDETF es la pieza central de la estrategia contra las drogas del Fiscal General de los Estados Unidos para reducir la disponibilidad de drogas, interrumpiendo y desmantelando organizaciones importantes de tràfico de drogas y organizaciones de blanqueo de dinero. El Servicio Forestal de los EE.UU., el Equipo Contra el Tràfico de Drogas en el Área de Gran Intensidad en la Parte Sur de los Tres Condados, la Oficina del Alguacil del Condado de Santa Ana, la Oficina del Alguacil del Condado de Kern, y el Departamento de Policía de Bakersfield también colaboraron en la investigación. Otras seis personas fueron acusadas y condenadas en un tribunal federal por varios delitos de drogas e inmigración como resultado de esta investigación de la OCDETF.
Cultivo en un Almacén de Bakerfield (No. 1:10CR379 AWI)
En otro caso en el Condado de Kern, Mark McGrath, 51, de Florida, fue sentenciado a dos años y dos meses de prisión, seguidos de cinco años de libertad vigilada, por conspirar para cultivar, distribuir y poseer con la intención de distribuir 1,161 plantas de marihuana encontradas en un almacén en un àrea industrial de Bakersfield. También se le ordenó registrarse como delincuente de drogas y entregar equipo de cultivo avaluados en miles de dólares.Según los documentos del tribunal, McGrath había sido reclutado desde Florida para ayudar a organizar una operación de cultivo de marihuana con fines de lucro. Las plantas de marihuana se valoraron en màs de $ 4 millones. Ademàs de las plantas, los agentes de drogas incautaron aproximadamente 54.8 libras de marihuana procesada por un valor de aproximadamente $219,200.
Este caso fue el producto de una investigación llevada a cabo por la DEA, el Departamento de Policía de Bakersfield, y la Oficina del Alguacil del Condado de Kern.
Cultivo en un Rancho del Condado de Kern (No. 1:12CR299 LJO)
Salvador Gallegos Jr., 22, de Bakersfield, fue sentenciado a 18 meses en prisión por conspirar para cultivar, distribuir y poseer con la intención de distribuir, 920 plantas de marihuana cultivadas sin permiso del propietario del terreno de un rancho privado en un àrea rural del Condado de Kern. En el lugar de cultivo, los agentes antidrogas también incautaron un par de libras de marihuana procesada y un rifle de asalto cargado con 24 balas. De acuerdo con su declaración de culpable al principio de este año, Gallegos fue reclutado para ayudar con el trabajo en el cultivo y fue traído al rancho el día antes por hombres no identificados.Este caso fue el producto de una investigación llevada a cabo por la DEA, la HSI, el Servicio Forestal de los EE.UU., y la Oficina del Alguacil del Condado de Kern bajo la Operación Mercury, una operación de ejecución y erradicación en seis condados iniciada el año pasado en el Valle Central para contrarrestar la proliferación de operaciones de cultivo de marihuana a gran escala en terreno agrícola. Hasta la fecha, la Operación Mercury ha tenido como resultado el procesamiento penal de 83 acusados federales y la incautación de 482, 479 plantas de marihuana, 4,714 libras de marihuana procesada, 82 armas, y $113,783 en efectivo.
Cultivo Agrícola de Alpaugh (No. 1:12CR234 LJO)
En otro caso de la Operación Mercury, Antonio Becerra Sànchez, también conocido como Antonio Íñiguez Becerra, 49, de Morgan Hill, se declaró culpable de conspirar para cultivar, distribuir y poseer con la intención de distribuir marihuana. Según los registros del tribunal, se encontró a Becerra cultivando marihuana en una parcela de 20 acres de terreno agrícola en la pequeña comunidad agrícola de Alpaugh en el Condado de Tulare. Agentes del orden público incautaron màs de 4,000 plantas de marihuana en una propiedad de Saúl Morales de 47 años, ocupada por él mismo, su esposa Juliana García Torres de 53 años y su hijo Gerardo Alfonso Morales de 20 años, quienes también son acusados pero han presentado una declaración de no culpables de varios delitos de tràfico de marihuana. Las acusaciones hechas a Morales, su esposa e hijo son solamente alegatos y los acusados son considerados inocentes hasta que y a menos que se pruebe su culpabilidad fuera de toda duda razonable.La sentencia de Becerra està programada para el 8 de julio de 2013. Le espera una pena mínima obligatoria de 5 años en prisión y un màximo de 40 años en prisión y una multa de $ 5 millones. La sentencia real, sin embargo, se determinarà a discreción del tribunal después de considerar cualquier factor aplicable legislativo de sentencia y las Normas Federales de Sentencia. Después de terminar su sentencia en prisión, Becerra estarà sujeto a la deportación a México.
Este caso es producto de una investigación llevada a cabo por la DEA, la HSI, la Agencia de Control de Alcohol, Tabaco y Armas de Fuego (ATF), y la Oficina del Alguacil del Condado de Tulare.
Cultivo Agrícola en el Condado de Fresno (No. 1:11CR357 AWI)
Shavane Bouasangouane, 44, de Fresno, se declaró culpable hoy de mantener una operación de cultivo de marihuana en un terreno agrícola en Armstrong Avenue, Fresno, donde residía.Según documentos del tribunal, Bouasangouane estaba involucrado en el cultivo y procesamiento de màs de 800 libras de marihuana que pertenecían a él y a su hermano, Reney Bouasangouane, 48, quien es también acusado en el caso y ha presentado un alegato de no culpable. Se supone que Reney Bouasangouane es inocente hasta que y a menos que se demuestre su culpabilidad fuera de toda duda razonable.
De acuerdo con el alegato de Shavane Bouasangouane, la marihuana era supuestamente para su propio uso médico. Sin embargo, no se encontraron en su residencia ni papeles para hacer cigarrillos, ni accesorios de fumador ni otros artículos usados para ingerir marihuana. La propiedad pertenece a Somluck y Damrong Pattanumotana, un médico de Fresno. Su hijo, Goon Pattanumotana, profesor de economía en Willow International en Fresno, es el dueño de otra propiedad en Sanger, donde agentes de policía han encontrado múltiples operaciones de cultivo de marihuana en gran escala en el pasado. Las propiedades de Sanger y Armstrong son el tema de acciones civiles de ejecución pendientes iniciadas por la Oficina del Fiscal General de los EE.UU. en Fresno y estàn siendo gestionadas por los Fiscales Adjuntos de los EE.UU. Kevin Khasigian y Alyson Berg.
La sentencia de Bouasangouane està programada para el 1 de julio de 2013, y contempla un tiempo màximo de prisión de 20 años y una multa de hasta $500,000. La sentencia real, sin embargo, se determinarà a discreción del tribunal después de considerar cualquier factor aplicable legislativo de sentencia y las Normas Federales de Sentencia.
Este caso es producto de una investigación llevada a cabo por la DEA, y la Oficina del Alguacil del Condado de Fresno.
El Fiscal Adjunto de los EE.UU. Karen A. Escobar està procesando todos los casos penales.
Former Owner of Los Angeles Medical Equipment Supply Company Pleads Guilty to Conspiring to Defraud MedicareRead the Press Release
A former owner of a Los Angeles-area medical equipment supply company pleaded guilty today to conspiring with others to defraud Medicare, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney André Birotte Jr. of the Central District of California; Glenn R. Ferry, Special Agent in Charge for the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); and Bill L. Lewis, Assistant Director in Charge of the FBI’s Los Angeles Field Office.
Tigran Aklyan, 37, of Van Nuys, Calif., pleaded guilty before U.S. District Judge Michael W. Fitzgerald in the Central District of California to one count of conspiracy to commit health care fraud.
According to court documents, Aklyan was the owner and president of Las Tunas Medical Equipment Inc., a durable medical equipment (DME) supply company located in San Gabriel, Calif. Aklyan admitted that from approximately October 2007 through May 2009, he conspired with others to commit health care fraud through the operation of Las Tunas by providing medically unnecessary power wheelchairs and other DME to Medicare beneficiaries and submitting false and fraudulent claims to Medicare. Aklyan admitted that he paid the owners and operators of fraudulent medical clinics to provide him with prescriptions and supporting medical documentation for the power wheelchairs and DME that he billed to Medicare. Aklyan admitted knowing that the prescriptions and medical documents that the clinics produced were fraudulent, yet he certified to Medicare with the submission of each claim that the DME was medically necessary. Aklyan also admitted that he knew it was illegal for him to pay for prescriptions, but he did so anyway.
From approximately Dec. 17, 2007, through Feb. 20, 2009, Aklyan, through Las Tunas, submitted approximately $910,377 in fraudulent claims to Medicare for power wheelchairs and related services, and Medicare paid Las Tunas approximately $653,461 on those claims.
At sentencing, scheduled for Aug. 5, 2013, Aklyan faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is being prosecuted by Trial Attorneys David M. Maria and Blanca Quintero of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Florida Woman Sentenced to Serve 72 Months<br /> in Prison for Conspiring to Distribute <br /> Prescription Drugs over the InternetRead the Press Release
Lina Rodriguez, 34, was sentenced today in the U.S. District Court for the Southern District of Florida to serve 72 months in prison, followed by 24 months of supervised release, for operating and facilitating the operation of an Internet-pharmacy business that illegally shipped over $1.5 million of pharmaceuticals since July 2007 to U.S. and overseas purchasers.
According to the Dec. 6, 2012, indictment, Rodriguez owned an Internet-pharmacy business used to advertise, sell and distribute a wide variety of controlled substances and prescription drugs in the United States and abroad. Since May 2009, her co-defendant, Michael P. Jackson, of Carmi, Ill., supplied Rodriguez with the prescription drug known as Adderall, which contains amphetamine, a Schedule II controlled substance.
The drugs distributed by Rodriguez’s business included Adderall, Ritalin (containing the controlled substance methylphenidate), Esbelcaps (containing a combination of the controlled substances fenproporex and diazepam ), and other controlled and non-controlled substances.
“This prosecution aims to curb the flow of dangerous drugs into the hands of United States citizens,” said Stuart F. Delery, Assistant Attorney General for the Civil Division of the U.S. Department of Justice. “The controlled substance drugs allegedly sold by the defendants were not dispensed by U.S. licensed pharmacies, and were not prescribed by any physician. Along with FDA, the U.S. Postal Inspection Service, and our other law enforcement partners, we will continue to protect our citizens from unsafe and potentially harmful drugs.”
Rodriguez pled guilty to the lead count of the indictment on Feb. 11, 2012, which charged her and Jackson with conspiring to possess with the intent to distribute Adderall. According to her plea agreement, Rodriguez agreed to forfeit two vehicles and not to oppose a judgment against her in the amount of $36,112, as gross proceeds of the offense to which she pleaded guilty. Jackson awaits sentencing on June 3, 2013.
The case was investigated by the Miami Field Office of the U.S. Food & Drug Administration’s Office of Criminal Investigations; the Miami Division of the U.S. Postal Inspection Service; and the Sacramento Field Office of the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Kevin J. Larsen of the U.S. Attorney’s Office for the Southern District of Florida, and Perham Gorji, Trial Attorney for the U.S. Department of Justice’s Consumer Protection Branch.
Department of Justice and the Department of Homeland Security Announce Safeguards for Unrepresented Immigration Detainees with Serious Mental Disorders or ConditionsRead the Press Release
WASHINGTON -- The Department of Justice (DOJ) and the Department of Homeland Security (DHS) will issue today a new nationwide policy for unrepresented immigration detainees with serious mental disorders or conditions that may render them mentally incompetent to represent themselves in immigration proceedings.
The policy entails implementation of new procedural protections, including: conducting screening for serious mental disorders or conditions when individuals held for removal proceedings enter a U.S. Immigration and Customs Enforcement Health Service Corps (IHSC)-staffed immigration detention facility; working with non-IHSC-staffed immigration detention facilities to identify detainees with serious mental disorders or conditions in those facilities; the availability of competency hearings and independent psychiatric or psychological examinations; procedures that will make available qualified representatives to detainees who are deemed mentally incompetent to represent themselves in immigration proceedings; and bond hearings for detainees who were identified as having a serious mental disorder or condition that may render them mentally incompetent to represent themselves and have been held in immigration detention for at least six months.
If verifiable documentation, medical records or other forms of evidence provide indication of mental incompetency, Immigration Judges will convene a competency hearing to determine whether the detainee is competent to represent himself or herself in immigration proceedings. When an Immigration Judge is unable to make a determination of mental competency based upon evidence already presented, the Immigration Judge will be authorized to order an independent examination and psychiatric or psychological report. The competency examinations will be administered through a program run by the DOJ Executive Office for Immigration Review (EOIR) and performed by an independent medical professional.
EOIR will make available a qualified representative to unrepresented detainees who are deemed mentally incompetent to represent themselves in immigration proceedings. Additionally, detainees who were identified as having a serious mental disorder or condition that may render them mentally incompetent to represent themselves and who have been held in immigration detention for at least six months will also be afforded a bond hearing.
DOJ and DHS believe these new procedures will provide enhanced protections to unrepresented immigration detainees with serious mental disorders or conditions that may render them mentally incompetent to represent themselves in immigration proceedings, and will facilitate the conduct of those proceedings. The Government expects these new procedures to be fully operational on a national basis by the end of 2013.
Clean Air Act Settlement with Wisconsin Utilities to Reduce Emissions by More Than 50,000 Tons AnnuallyRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the United States Attorney’s Office for the Western District of Wisconsin announced a Clean Air Act (CAA) settlement with Wisconsin Power and Light Company (WPL) that will significantly reduce air pollution from three coal-fired power plants located near Portage, Sheboygan, and Cassville, Wis.
WPL operates the plants that are covered by the settlement, and the other defendants, Wisconsin Public Service Corporation (WPSC), Madison Gas and Electric Company, and Wisconsin Electric Power Company, are co- and former owners of the units. WPL and its co-defendants agreed to invest more than $1 billion in pollution control technology, spend a total of $8.5 million on environmental mitigation projects, and pay a civil penalty of $2.45 million to resolve alleged violations of the CAA.
“This settlement will improve air quality in Wisconsin and downwind areas by significantly reducing releases of sulfur dioxide, nitrogen oxide and other harmful pollutants,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. “This agreement also demonstrates the Justice Department’s commitment to enforcing the New Source Review provisions of the Clean Air Act, which help ensure clean air for those communities affected by large sources of air pollution.”
“EPA is committed to protecting communities by reducing air pollution from the largest sources of emissions,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “The pollution reductions and the significant investment in local environmental projects required under this agreement will ensure that the people of Wisconsin and neighboring states have cleaner, healthier air.”
“One of the many things that makes Wisconsin special is our clean air,” said John W. Vaudreuil, United States Attorney for the Western District of Wisconsin. “With this settlement, the facilities’ owners are held accountable and required to mitigate the harm caused by their unlawful pollution of Wisconsin’s air. Cleaner air protects the health of our citizens, our forests, crops, and water, and all of us who treasure Wisconsin’s clean environment. The United States Attorney’s Office for the Western District of Wisconsin is committed to taking a leadership role in protecting the environment in Wisconsin.”
Under the settlement, the defendants must install new pollution control technology on the three largest units, continuously operate the new and existing pollution controls, and comply with stringent pollutant emission rates and annual tonnage limitations. The settlement also requires WPL and WPSC to permanently retire, refuel or repower four additional coal-fired units at the Edgewater and Nelson Dewey plants. The actions taken to comply with this settlement will result in annual reductions of sulfur dioxide (SO2), oxides of nitrogen (NOx) and particulate matter (PM) of approximately 54,000 tons from 2011 levels. This settlement covers all seven coal-fired boilers at the Columbia, Edgewater, and Nelson Dewey power plants.
The settlement also requires the defendants to spend $8.5 million on projects that will benefit the environment and human health in communities located near the facilities, including $260,500 to the U.S. Forest Service and $260,500 to the National Park Service, to be used on projects to address the damage done from the emissions. The remaining $7.479 million will be spent on a combination projects, including up to $2.1 million on land acquisition and restoration; up to $5 million on a long term major solar photovoltaic (PV) power purchase agreement or a solar PV panels installation project; and up to $2 million on renewable energy resource enhancements for existing wind farms and hydroelectric facilities.
Reducing air pollution from the largest sources of emissions, including coal-fired power plants, is one of EPA’s National Enforcement Initiatives for 2011-2013. SO2 and NOx, two key pollutants emitted from power plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. These pollutants are converted in the air to fine particles of particulate matter that can cause severe respiratory and cardiovascular impacts, and premature death. Reducing these harmful air pollutants will benefit the communities located near the facilities, particularly communities disproportionately impacted by environmental risks and vulnerable populations, including children. Because air pollution from power plants can travel significant distances downwind, this settlement will also reduce air pollution outside the immediate region.
This is the 26th judicial settlement secured by the Justice Department and EPA as part of a national enforcement initiative to control harmful emissions from power plants under the CAA’s New Source Review requirements. The total combined sulfur dioxide and nitrogen oxides emission reductions secured from these settlements will exceed 2 million tons each year once all the required pollution controls have been installed and implemented.
Sierra Club is co-plaintiff to the settlement.
The settlement was lodged with the U.S. District Court for the Western District of Wisconsin, and is subject to a 30-day public comment period and final court approval. A copy of the consent decree lodged today is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html
More information about the settlement: www.epa.gov/enforcement/air/cases/wisconsinpower.html
More information about EPA’s enforcement initiative: www.epa.gov/compliance/data/planning/initiatives/2011airpollution.html
Baltimore Immigration Judge Participates in Naturalization CeremonyRead the Press Release
BALTIMORE --Immigration Judge Lisa Dornell from the Executive Office for Immigration Review, Baltimore Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 75 candidates during a naturalization ceremony at the George H. Fallon Federal Building in Baltimore, Md., on April 19, 2012. The Baltimore District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Janet Reno appointed Judge Dornell in April 1995. Judge Dornell received a bachelor of arts degree in 1983 from the University of Vermont and a juris doctorate in 1986 from the University of Texas at Austin School of Law. From 1990 to 1995, Judge Dornell served as senior litigation counsel, Office of Immigration Litigation, Civil Division, Department of Justice. From 1986 to 1990, she served as a trial attorney for the former Immigration and Naturalization Service (INS), New York district office, and as an assistant general counsel, INS Headquarters, Washington, D.C. Judge Dornell lectures on immigration topics and court procedure at several local law schools. She is a member of the District of Columbia and State of Texas 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 ReviewPhiladelphia La Cosa Nostra Capo <br /> Pleads Guilty to Racketeering ConspiracyRead the Press Release
Anthony Staino, 55, of Swedesboro, N.J., pleaded guilty yesterday to participating in a racketeering conspiracy as a capo in the Philadelphia La Cosa Nostra (LCN) Family and committing loan sharking and illegal gambling.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division, made the announcement after the plea was accepted by U.S. District Judge Eduardo C. Robreno of the Eastern District of Pennsylvania.
Staino pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia LCN Family through a pattern of racketeering activity. He faces a maximum penalty of 70 years in prison when he is sentenced on Jul. 17, 2013.
Through court documents and statements yesterday in court, Staino admitted that, as a made member and capo of the Philadelphia LCN Family, he gave a usurious loan to an undercover FBI agent and used threats of violence to collect payments on the loan. Staino also admitted that he ran an illegal electronic gambling device business for the mob, providing video poker machines and other gambling devices for bars, restaurants, convenience stores, coffee shops and other locations in Philadelphia and its suburbs, and then collected the illegal gambling proceeds.
The case is being investigated by the FBI, the Internal Revenue Service-Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
Justice Department Reaches Settlement with Anheuser-Busch InBev and Grupo Modelo in Beer CaseRead the Press Release
WASHINGTON – The Department of Justice announced today that it has reached a settlement with Anheuser-Busch InBev SA/NV (ABI) and Grupo Modelo S.A.B. de C.V. that requires the companies to divest Modelo’s entire U.S. business – including licenses of Modelo brand beers, its most advanced brewery, Piedras Negras, its interest in Crown Imports LLC and other assets – to Constellation Brands Inc., in order to go forward with their merger. The department said the proposed settlement will maintain competition in the beer industry nationwide, benefitting consumers.
Today’s proposed settlement was filed in the U.S. District Court for the District of Columbia. If approved by the court, the settlement will resolve the department’s competitive concerns.
On Jan. 31, 2013, the department filed an antitrust lawsuit against ABI and Modelo alleging that ABI’s $20.1 billion acquisition of the remaining interest in Modelo that ABI did not already own, as originally proposed, would substantially lessen competition in the market for beer in the United States as a whole and in at least 26 metropolitan areas across the United States. The department alleged that the transaction would result in consumers paying more for beer and would limit innovation in the beer market.“Before the merger, there were two competitors – Modelo and ABI – and ABI owned a substantial stake in Modelo. The companies’ proposed merger would have reduced those two competitors to one – ABI. The proposed settlement announced today will create an independent, fully integrated and economically viable competitor to ABI. This is a win for the $80 billion U.S. beer market and consumers,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “If this settlement makes just a one percent difference in prices, U.S. consumers will save almost $1 billion a year.”
The settlement requires ABI and Modelo to divest Modelo’s entire U.S. business to Constellation or to an alternative purchaser if for some reason the transaction with Constellation cannot be completed. Specifically, the settlement requires ABI and Modelo to divest: the Piedras Negras brewery, Modelo’s newest, most technologically advanced brewery; perpetual and exclusive licenses of the Modelo brand beers for distribution and sale in the United States; Modelo’s current interest in Crown – the joint venture established by Modelo and Constellation to import, market and sell certain Modelo beers into the United States; and other assets, rights and interests necessary to ensure that Constellation is able to compete in the U.S. beer market using the Modelo brand beers, independent of a relationship to ABI and Modelo.The licensed brands include all seven brands that Modelo currently offers (through its distributor, Crown) in the United States – Corona Extra, Corona Light, Modelo Especial, Negra Modelo, Modelo Light, Pacifico and Victoria – as well as three brands not yet offered in the United States, but currently sold by Modelo in Mexico – Pacifico Light, Barrilito and León. The licenses include rights that will give Constellation the ability to adapt to changing market conditions in the United States.
Constellation has committed to expand the capacity of Piedras Negras in order to meet current and future demand for the Modelo brands in the United States, and that commitment is a condition of the proposed settlement. The settlement also sets milestones for the expansion of the Piedras Negras brewery. In order to enable Constellation to compete in the United States during the time it takes to expand the Piedras Negras brewery’s capacity to brew and bottle beer, the settlement requires ABI to enter into interim supply and transition services agreements with Constellation. These agreements are time-limited to ensure that Constellation will become a fully independent competitor to ABI as soon as practicable.
ABI and Modelo originally proposed selling Modelo’s stake in Crown to Constellation and entering into a 10-year supply agreement to provide Modelo beer to Constellation to import into the United States. The department rejected that purported fix because it would have eliminated the Modelo brands as an independent competitive force in the United States beer market. Unlike the companies’ original proposal, which left Constellation with no brewing assets and beholden to ABI for the supply of beer, the proposed settlement ensures that Constellation, or an alternative purchaser, will have independent brewing assets and the ownership of the Modelo beer brands for sale in the United States in perpetuity. As a result, Constellation will fully replace Modelo as a competitor in the United States.
ABI is a corporation organized and existing under the laws of Belgium, with headquarters in Leuven, Belgium. ABI brews and markets more beer sold in the United States than any other firm, with a 39 percent market share nationally. ABI owns and operates 125 breweries worldwide, including 12 in the United States. It owns more than 200 different beer brands, including Bud Light – the best-selling brand in the United States – and other popular brands such as Budweiser, Busch, Michelob, Natural Light, Stella Artois, Goose Island and Beck’s.
Modelo is a corporation organized and existing under the laws of Mexico, with headquarters in Mexico City. Modelo is the third-largest brewer of beer sold in the United States, with a seven percent market share nationally. Modelo owns Corona Extra–the top-selling beer imported into the United States. Its other popular brands sold in the United States include Corona Light, Modelo Especial, Negra Modelo, Victoria and Pacifico. Crown imports, markets and sells Modelo’s brands into the United States. ABI currently holds a 35.3 percent direct interest in Modelo and a 23.3 percent direct interest in Modelo’s operating subsidiary Diblo.
Constellation, headquartered in Victor, N.Y, is a beer, wine and spirits company with a portfolio of more than 100 products, including Robert Mondavi, Clos du Bois, Ruffino and SVEDKA Vodka. It produces wine and distilled spirits, with more than 40 facilities worldwide.
The proposed settlement, along with the department's competitive impact statement, will be published in the Federal Register, consistent with the requirements of the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to James Tierney, Chief, Networks and Technology Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7100, Washington, D.C. 20530. The comments will be published in the Federal Register. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.Justice Department Reaches Settlement Agreement with City of Jacksonville, Fla., to Ensure Civic Access for People with DisabilitiesRead the Press Release
The Justice Department today announced an agreement with the city of Jacksonville, Fla., to improve access for people with disabilities to civic life in Jacksonville. The agreement was reached under Project Civic Access (PCA), the Justice Department’s initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).
“Access to your city is a basic civil right, and the doors to government programs, services and activities must be open for people with disabilities,” said Eve L. Hill, Senior Counselor to the Assistant Attorney General for the Civil Rights Division. “I commend the city of Jacksonville for its commitment that all people have full access to what the city has to offer.”
PCA ensures that persons with disabilities have an equal opportunity to participate in civic life. As part of the PCA initiative, Justice Department staff, including investigators and architects, survey government facilities, services and programs in communities across the country. The survey identifies modifications needed for compliance with the ADA. The agreements set out steps each community must take to improve access. PCA agreements require physical modifications to facilities to make them accessible to people with disabilities. Elements that need modifications may include parking, routes into buildings, entrances, assembly areas, restrooms, service counters and drinking fountains. Other provisions address effective communication, grievance procedures, polling places, emergency management, sidewalks, domestic violence programs and web-based services.
Jacksonville is one of the largest cities in Florida and, by area, one of the largest in the United States. It operates one of the largest city park systems in the United States. During the compliance review, the Department reviewed 64 of the city’s facilities. The agreement requires the city to correct deficiencies identified at the 64 facilities and requires Jacksonville to review and correct identified deficiencies at hundreds of additional facilities. The agreement will remain in effect for five years. The department will monitor the city’s compliance with the agreement.
People interested in finding out more about the ADA, today’s agreement with the city of Jacksonville, the PCA initiative or the ADA Best Practices Tool Kit for state and local governments can access the ADA webpage at www.ada.gov o r call the toll-free ADA Information Line at (800) 514-0301 (TDD 800-514-0383).
Related Materials:
Jacksonville PCA Settlement Agreement
Cement Manufacturer Agrees to Reduce Harmful Air Emissions at Colorado PlantRead the Press Release
The U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today that CEMEX, Inc., the owner and operator of a Portland cement manufacturing facility in Lyons, Colo., has agreed to operate advanced pollution controls on its kiln and pay a $1 million civil penalty to resolve alleged violations of the Clean Air Act (CAA).
“This agreement will mean cleaner air for Colorado residents downwind of the CEMEX facility and will contribute to improved air quality in the Rocky Mountain National Park, which is one of our nation’s most cherished public spaces,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The settlement is part of the Justice Department’s continuing efforts, along with the EPA, to bring significant sources of air pollution within the cement manufacturing sector into compliance with the Clean Air Act.”
“Today’s settlement will reduce harmful emissions of nitrogen oxides, which can have serious impacts on respiratory health for communities along Colorado’s Front Range,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Cutting these emissions will also help improve environmental quality and visibility in places like Rocky Mountain National Park.”
The Department of Justice , on behalf of EPA, filed a complaint against CEMEX alleging that between 1997—2000, the company unlawfully made modifications at its Lyons plant that resulted in significant net increases of nitrogen oxide (NOx) and particulate matter (PM) emissions. The complaint further alleges that these increased emissions violated the CAA’s Prevention of Significant Deterioration and Non-Attainment New Source Review requirements, which state that companies must obtain the necessary permits prior to making modifications at a facility and install and operate required pollution control equipment if modifications will result in increases of certain pollutants.
As part of the settlement, CEMEX will install “Selective Non-Catalytic Reduction” (SNCR) technology at their Lyons facility, which is an advanced pollution control technology designed to reduce NOx emissions. This will reduce their NOx emissions by approximately 870 to 1,200 tons of NOx per year. The initial capital cost for installing SNCR is approximately $600,000 and the cost of injecting ammonia into the stack emissions stream, a necessary part of the process, is anticipated to be about $1.5 million 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.
NOx emissions may cause severe respiratory problems and contribute to childhood asthma. These emissions also contribute to acid rain, smog, and haze which impair visibility in national parks. CEMEX’s facility is located within 20 miles of Rocky Mountain National Park, and its emissions may contribute to visibility impairment and to the nitrogen pollution problem that is affecting the park’s vegetation, water quality, and trout populations. Air pollution from Portland cement manufacturing facilities can also travel significant distances downwind, crossing state lines and creating region-wide health problems.
The proposed consent decree will be lodged with the Federal District Court for the District of Colorado, and will be subject to a 30-day public comment period. A copy of the consent decree lodged today is available on the Department of Justice website at http://www.usdoj.gov/enrd/open.html.
More information about the settlement: www.epa.gov/enforcement/air/cases/cemex-lyons.html
More information about EPA’s national enforcement initiative: http://www.epa.gov/compliance/data/planning/initiatives/2011airpollution.html
Two Atlanta Men Plead Guilty to Federal Hate Crime Against Gay ManRead the Press Release
Christopher Cain, 19, and Dorian Moragne, 20, both of Atlanta, pleaded guilty today in federal court to beating a man because of his sexual orientation.
According to information presented in court, Cain, Moragne and a juvenile, all associated with the Jack City street gang, targeted a 20-year-old gay man on Feb. 4, 2012, as the man left a grocery store in Atlanta’s Pittsburgh neighborhood. Cain punched the victim in the head and pushed him to the ground. Cain, Moragne and the juvenile surrounded the victim and repeatedly punched and kicked him while the group yelled anti-gay epithets, including “No f****** in Jack City.” Moragne then picked up a tire and struck the victim with it. The group also stole the victim’s cell phone. A fourth person, also with the defendants, recorded the assault using a cell phone. The video footage was posted to the internet.
“Hate-fueled violence will not be condoned,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “The Justice Department will use all the tools in our law enforcement arsenal to investigate and prosecute hate crimes.”
“Using violence against another person because of his or her sexual orientation has no place in our civilized society. The Department of Justice is committed to aggressively enforcing the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act to prosecute acts motivated by hate,” said U.S. Attorney Sally Quillian Yates.
Cain and Moragne admitted to violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act, which expanded federal jurisdiction to include certain assaults motivated by the victim’s sexual orientation. The federal hate crimes law criminalizes certain acts of violence motivated by a victim’s actual or perceived race, color, national origin, religion, sexual orientation, disability, gender or gender identity. This case is the first in Georgia to charge a violation of the sexual orientation provision of this federal hate crimes law.
Last year, Cain, Moragne and the juvenile, who was considered an adult under Georgia law, were prosecuted in Fulton County, Ga., Superior Court for offenses that did not include a hate crime. In state court, Cain and Moragne were sentenced to a term of 10 years in prison, suspended upon the service of five years. As part of their plea agreement, federal prosecutors recommended that their federal and state sentences run concurrently.
This case is being investigated by special agents of the FBI and investigators with the Atlanta Police Department. The case is being prosecuted by Trial Attorney Nicole Lee Ndumele of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Brent Alan Gray.
Tennessee Salvage Company Owners and Operators Plead Guily to Conspiring to Violate the Clean Air ActRead the Press Release
Three owners and operators of a Tennessee salvage and demolition company, A&E Salvage, Inc., pleaded guilty today in federal court in Greeneville, Tenn., for conspiring to violate the Clean Air Act.
Newell (a.k.a., “Nick”) Smith, Armida Di Santi, and Milto Di Santi pleaded guilty before U.S. District Court Judge Greer for the Eastern District of Tennessee to one criminal felony count for conspiring to violate the Clean Air Act’s “work practice standards” salient to the proper wetting, stripping, bagging, and disposal of asbestos. According to the charges, Smith and the Di Santis, along with other co-conspirators, engaged in a multi-year scheme in which substantial amounts of regulated asbestos containing materials were improperly removed from components of the former Liberty Fibers Plant or were illegally left in place during demolition.
Smith and the Di Santis face up to five years in prison and a fine of up to $250,000 or twice the gross gain or loss to the victims.
Asbestos has been determined to cause lung cancer, asbestosis and mesothelioma, an invariably fatal disease. The Environmental Protection Agency has determined that there is no safe level of exposure to asbestos.
This case was investigated by Special Agents of the Environmental Protection Agency. The case is being prosecuted by Assistant U.S. Attorney Matthew T. Morris of the U.S. Attorney’s Office for the Eastern District of Tennessee and Trial Attorney Todd W. Gleason of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
Owner of Texas Durable Medical Equipment Companies Sentenced to 41 MonthsRead the Press Release
Hugh Marion Willett, the owner of two Texas-based durable medical equipment companies, was sentenced today to 41 months in prison, followed by three years of supervised release, and ordered to pay $182,450 in restitution, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Willett, 69, of Fort Worth, Texas, was found guilty in January by U.S. District Judge Jane J. Boyle in the Northern District of Texas on all seven counts of a June 2012 second superseding indictment: one count of conspiracy to commit health care fraud and six counts of health care fraud stemming from a durable medical equipment (DME) fraud scheme. His wife, Jean Willett, previously pleaded guilty to the same charges and was sentenced in September 2012 to 50 months in prison.
The evidence at trial showed that between 2006 and 2010, the Willets co-owned and operated JS&H Orthopedic Supply LLC and Texas Orthotic and Prosthetic Systems Inc., which claimed to provide orthotics and other DME to beneficiaries of Medicare and private insurance benefit programs including Aetna, Blue Cross Blue Shield and CIGNA.
Evidence presented in court proved that both of these companies intentionally submitted claims to Medicare and other insurers for products that were materially different from and more expensive than what was actually provided, and that Hugh Marion Willett was a knowing and willful participant in the fraud.
The case was investigated by the FBI and the Department of Homeland Security’s Office of Inspector General and brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section. The case was prosecuted by Fraud Section Trial Attorney Ben O’Neil.
Since their inception in March 2007, strike force operations in nine locations have charged more than 1,480 defendants who collectively have falsely billed the Medicare program for more than $4.8 billion. In addition, the Centers for Medicare and Medicaid Services, working in conjunction with the Office of Inspector General for the U.S. Department of Health and Human Services, are taking steps to increase accountability and decrease the presence of fraudulent providers.Jesse Castro Babauta Sentenced for Failure to Register as A Sex OffenderRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced today that defendant JESSE CASTRO BABAUTA, age 45, was sentenced by Chief Judge Frances Tydingco-Gatewood in the United States District Court, to seven (7) months imprisonment for the offense of Failure to Register as a Sex Offender. After defendant serves his term of imprisonment, he will be placed on supervised release for ten (10) years and required to perform community service, pay a $1,000 fine, comply with a Sex Offender Treatment Assessment, and submit to a search of his person, residence and belongings, to include any computers and data in his possession.
In 1995, JESSE CASTRO BABAUTA was convicted of three counts of First Degree Criminal Sexual Conduct (As First Degree Felonies) in the Superior Court of Guam. As a result of these convictions, he is required under federal and local law to register with the Guam Sex Offender Registry at the Superior Court of Guam every 90 days for his entire life. Defendant BABAUTA failed to register or update his information with the Guam Sex Offender Registry between the dates of August 2011 through October 2012. As a result of failing to register, he was considered non-compliant and his name and photograph were published on the Guam Sex Offender Registry at www.guamcourts.org/sor/. He was non-compliant until federal Marshals with the United States Marshals Service (USMS) arrested him for the instant offense.
U.S. Attorney Limtiaco states, “The purpose of the Guam Sex Offender Registry is to provide important notice to island residents that sex offenders are living, working and attending schools in our community. The Sex Offender Registry is a nationwide network that exists to increase public safety and community awareness. Defendants who have committed sexually violent offenses, criminal sex conduct offenses, or criminal offenses involving minor victims must all register and maintain their registrations with the Guam Sex Offender Registry. Defendants who refuse to register or update their information will face federal punishment. The United States Attorney’s Office is committed to the aggressive prosecution of non-complaint sex offenders.”
U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute crimes against children, to include defendants who produce, receive and distribute child pornography, as well as defendants who fail to register with the Sex Offender Registry.
Assistant U.S. Attorney Rosetta San Nicolas prosecuted the case for the United States. U.S. Attorney Limtiaco commends the investigative efforts of Sr. Inspector John Untalan of the United States Marshals Service as well as Sr. Probation Officer Ruben Payumo with the Superior Court of Guam.
Former Tuscaloosa Police Sergeant Pleads Guilty to Civil Rights Violation for Sexually Assaulting a WomanRead the Press Release
Jason Glenn Thomas, 34, a former sergeant with the city of Tuscaloosa, Ala., Police Department, pleaded guilty today to a criminal civil rights charge for using his authority as a law enforcement officer to sexually assault a woman.
According to court documents filed in connection with his guilty plea, Thomas admitted that while on duty shortly after midnight on March 27, 2011, he stopped and detained a female pedestrian without placing her under arrest. Thomas then transported the woman in his department issued patrol vehicle to a remote area and sexually assaulted her.
“This former officer did the unimaginable when he used his police powers to sexually assault this victim,” said Roy L. Austin, Jr., Deputy Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who abuse their position and authority to harm those individuals whom they have sworn to protect.”
“Most police officers work diligently every day to protect the citizens,” said U.S. Attorney for the Northern District of Alabama Joyce White Vance. “A community must be able to trust its police officers. My office is committed to prosecuting any officers who abuse the authority of the badge to commit a crime. This abuse of the public’s trust will not be permitted.”
“Mr. Thomas dishonored his badge and his fellow officers when he violated the civil rights of a female pedestrian while on duty, in uniform and in a marked patrol car,” said FBI Special Agent in Charge of the FBI Birmingham, Ala., Field Office Richard D. Schwein Jr. “Citizens have a right and should expect ethical and proper treatment from all law enforcement officers and we, as civil servants, must never forget that we have sworn an oath to serve and protect them. The public can be assured the FBI will continue to aggressively pursue those rogue officers who violate that trust.”
Thomas faces a maximum sentence of 10 years in prison and a fine of $250,000. Sentencing is scheduled for July 18, 2013, before U.S. District Judge C. Lynwood Smith.
This case was investigated by the Tuscaloosa resident agency of the FBI’s Birmingham Field Office, and was prosecuted by Trial Attorney D.W. Tunnage of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney George Martin for the Northern District of Alabama.
Florida Man Indicted on Drug Conspiracy and Sex Trafficking ChargesRead the Press Release
A federal grand jury returned an indictment today charging Andrew Blane Fields, 62, of Lutz, Fla., with conspiracy to possess with the intent to distribute controlled substances, namely Oxycodone, Dilaudid and Morphine; three counts of sex trafficking by force, fraud and coercion; and two counts of possession with intent to distribute controlled substances. If convicted on all counts, Fields faces a maximum of life in federal prison.
According to allegations in the indictment and criminal complaint, at least as early as 2008 through the end of 2012, Fields engaged in the sex trafficking of three different victims for commercial gain, who are identified in the indictment by their initials. Fields coerced and controlled the victims by, among other methods, supplying them on a daily basis with a large number of highly addictive prescription drugs. During the execution of a federal search warrant, law enforcement recovered thousands of prescription pills from Fields’ residence. Fields was previously charged by criminal complaint on March 20, 2013.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent until proven guilty.
This case was investigated by the Department of Homeland Security – Homeland Security Investigations with the assistance of the Clearwater, Fla., Police Department and members of the Clearwater Area Human Trafficking Task Force. It will be prosecuted by Assistant U.S. Attorney Josephine W. Thomas and Trial Attorney William E. Nolan with the Department of Justice Civil Rights Division’s Human Trafficking Prosecution Unit.
Justice Department Settles with Apple Tree Children’s Center in Norwalk, IowaRead the Press Release
The Justice Department announced today that it reached a settlement with Apple Tree Children’s Center of Norwalk, Iowa, to remedy alleged violations of the Americans with Disabilities Act (ADA). The agreement resolves allegations that Apple Tree Children’s Center failed to ensure that children with disabilities, including children with Down syndrome, have a full and equal opportunity to participate in and benefit from its private pre-school programs.
Under the settlement agreement, Apple Tree Children’s Center will pay $2,500 to the child’s parents and will make reasonable modifications in policies, practices and procedures to ensure that its programs and services are accessible to children with disabilities. Apple Tree will also provide training on its obligations under Title III of the ADA to all staff who participate in the admissions process, enrollment decisions and consideration of requests for reasonable modifications of any of its policies, practices or procedures. In addition, Apple Tree will designate a staff member as its ADA compliance officer to ensure its compliance with Title III of the ADA and to review proposed decisions to exclude children with disabilities from enrollment or proposed denials of any requested reasonable modifications.
“Children with disabilities, including those with Down syndrome, have the right to full and equal participation in pre-school educational programs. The department is committed to upholding civil rights for all people with disabilities,” said Eve Hill, Senior Counselor to the Assistant Attorney General for the Civil Rights Division.
The ADA requires that public accommodations, including pre-school programs, provide children with disabilities, including those with Down syndrome, full and equal enjoyment of the public accommodation’s goods, services and facilities.
The Department of Justice provides a webpage specifically dedicated to information about the ADA at www.ada.gov. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TTY), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
Justice Department Settles Lawsuit Against Owners and Managers of Rental Homes in Mississippi for Discriminating Against Families with ChildrenRead the Press Release
The Justice Department announced today that Marcus Manly Magee III, Ina Magee, and their company, M.M. and S. Inc., have agreed to pay $27,000 to settle a lawsuit involving violations of the Fair Housing Act. The lawsuit alleged that the defendants established and implemented an occupancy policy at 23 rental properties in Magee, Miss., that differentiated between the maximum number of adults and children who could reside in each home.
Under the consent order, which was approved today by the U.S. District Court for the Southern District of Mississippi, the defendants must pay $20,000 to a family that was harmed by defendants’ discriminatory practices and $7,000 to the United States as a civil penalty. In addition, the order prohibits the defendants from discriminating against families with children in the future, mandates a non-discriminatory occupancy policy of two persons per bedroom, and requires the defendants to receive training on the Fair Housing Act.
“The Fair Housing Act ensures that families cannot be denied housing based on policies that discriminate against children,” said Eric Halperin, Special Counsel for Fair Lending in the Civil Rights Division. “The Justice Department will continue its vigorous enforcement of fair housing laws that protect the rights of families with children.”
“This settlement ensures that prospective families seeking housing will be treated fairly under the law,” said Gregory K. Davis, U.S. Attorney for the Southern District of Mississippi. “We will continue to work with the Civil Rights Division to protect the rights of Mississippi citizens through enforcement of the Fair Housing Act.”
The lawsuit, filed in November 2011, arose as a result of a complaint filed with the U.S. Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department. The lawsuit alleged that the defendants violated the Fair Housing Act by refusing to rent a three-bedroom home to a woman with four children because she had “too many children” under the defendants’ occupancy policy. The suit also alleged that by setting a lower maximum number of children than adults who could reside in each home, the defendants engaged in a pattern or practice of discrimination or denied rights protected by the Fair Housing Act to a group of persons.
“Housing providers have an obligation to ensure that their occupancy standards do not violate a family’s housing rights,” said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and the Department of Justice are committed to taking action against anyone who unlawfully denies housing to families because of the number of children in their family.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
Related Materials:
Magee Consent Order
Justice Department Files Lawsuit in Illinois Against County Employees’ and Officers’ Annuity and Benefit Fund of Cook County and Cook County to Enforce the Employment Rights of Army Reserve MemberRead the Press Release
The Justice Department announced today the filing of a complaint alleging that the County Employees’ and Officers’ Annuity and Benefit Fund of Cook County and Cook County willfully violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to allow U.S. Army Reserve Member Latoya Hayward to lawfully contribute to her pension for the time she was serving in the armed forces.
According to the complaint, filed in the U.S. District Court for the Northern District of Illinois, in 2008 Hayward began working for John H. Stroger Jr. Hospital, which is owned and operated by Cook County. During her employment with Stroger Hospital, Hayward was mobilized for a two year tour of duty with the Army Reserves starting on July 27, 2009. During Hayward’s period of active service, she served as a nurse case manager at Walter Reed Hospital as part of the Warrior Transition Brigade. As alleged in the complaint, upon Hayward’s return from duty, the County Employees’ and Officers’ Annuity and Benefit Fund of Cook County notified her not only that she was ineligible to make payments into her pension for the 90-day grace period following her active military service, but also that her employee contributions for the two-year period of her active military service would be subject to a 3 percent interest fee. Among the protections provided by USERRA are pension-related provisions that treat a servicemember who is called to active duty as if she has had no break in service for purpose of the administration of pension benefits. According to Hayward’s complaint, both of the County Employees’ and Officers’ Annuity and Benefit Fund of Cook County’s requirements for her participation in her employer’s pension plan violated USERRA’s pension protection provisions.
“Congress enacted USERRA to protect our men and women in uniform from experiencing this kind of injustice,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “The Justice Department is committed to vigorously enforcing federal laws that protect the employment rights of our service members.”
“Members of the Army Reserves sacrifice time away from their jobs to serve their country,” said Gary S. Shapiro, U.S. Attorney for the Northern District of Illinois. “USERRA ensures that they are not discriminated against after they have returned and that their employment rights are protected.”
The case stems from a referral by the U.S. Department of Labor following an investigation by the Department of Labor’s Veterans’ Employment and Training Service. This case is being handled by the Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Illinois, who work collaboratively with the Department of Labor to protect the jobs and benefits of National Guard and Reserve service members upon their return to civilian life.
Additional information about USERRA can be found on the Justice Department website: www.servicemembers.gov and www.usdoj.gov/crt/emp , as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm .
Detroit-Area Home Health Agency Office Manager Convicted in <br /> $5.8 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Detroit today convicted the office manager of a home health agency for her participation in a $5.8 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Robert D. Foley III, Special Agent in Charge of the FBI Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Detroit Office.
Nabila Mahbub, 27, the office manager of All American Home Care Inc., was found guilty in U.S. District Court for the Eastern District of Michigan of one count of conspiracy to commit health care fraud.
Mahbub was charged in a superseding indictment returned March 27, 2012. Nineteen other individuals who worked at or were associated with All American were previously convicted for their roles in the fraudulent scheme; one was acquitted at trial, but was convicted at trial for a separate, but related, scheme.
According to evidence presented at trial, the defendant and her co-conspirators caused the submission of false and fraudulent claims to Medicare through All American, a home health care company located in Oak Park, Mich., that purported to provide skilled nursing and physical therapy services to Medicare beneficiaries in the greater Detroit area.
The evidence at trial showed that the defendant and her co-conspirators used patient recruiters, who paid Medicare beneficiaries to sign blank documents for physical therapy services that were never provided and/or medically unnecessary. The owners of All American paid physicians to sign referrals and other therapy documents necessary to bill Medicare. Physical therapists and physical therapist assistants then created fake medical records using blank, pre-signed forms obtained by the patient recruiters to make it appear as if physical therapy services were actually rendered, when, in fact, they were not.
According to evidence presented at trial, Mahbub doctored and directed the doctoring of fake patient files to facilitate the commencement and billing of home health services purportedly provided by physical therapists and physical therapist assistants working for All American. Mahbub also directed the physical therapists and physical therapist assistants who created fake therapy visit notes using blank, pre-signed forms, to make it appear that physical therapy services billed to Medicare were actually provided.
All American was paid over $5.8 million from Medicare between September 2008 and November 2009.
At sentencing, scheduled for July 25, 2013, Mahbub faces a maximum penalty of 10 years in prison.
This case is being prosecuted by Deputy Chief Gejaa T. Gobena and Trial Attorney Matthew C. Thuesen of the Criminal Division’s Fraud Section. The investigation was led by the FBI and HHS-OIG, and was brought by the Medicare Fraud Strike Force, a joint effort of the U.S. Attorney’s Office for the Eastern District of Michigan 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 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
U.K. Resident Extradited on Charges <br /> He Traveled to Ohio to Have Sex with a JuvenileRead the Press Release
Richard Castle, 46, a resident of the United Kingdom, has been extradited to the United States where he faces charges of coercion of a minor, travelling with intent to engage in illicit sexual contact with a minor, and transferring obscene material to minors. The charges are related to a trip he allegedly made to Ohio from his home in order to have sexual relations with a juvenile in June 2011.
Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and William A. Hayes, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan announced the charges today after Castle appeared before a U.S. Magistrate Judge in Dayton, Ohio, who ordered him held without bond pending trial.
Members of the Metropolitan Police Service’s Extradition Team and International Assistance Unit, housed within New Scotland Yard, arrested Castle at his home in Northampton, England on Jan. 12, 2012 and seized at least one computer.
The three-count indictment alleges that Castle, posing as a male named Richard Joshua Parker, used the internet between March 2009 and June 2011 to coerce a juvenile to engage in illicit sexual activity. He allegedly flew to Dayton in June 2011 to engage in illicit sexual relations with the juvenile and stayed approximately three weeks. The indictment also accuses Castle of transferring obscene materials to a juvenile.
Coercion and enticement of a minor is punishable by at least ten years in prison and up to life. Travel with intent to engage in illicit sexual conduct is punishable by up to 30 years and transfer of obscene material to minors is punishable by up to 10 years.
Raman and Stewart acknowledged the cooperative investigation by the Englewood Police Department, Vandalia Police Department and HSI special agents, as well as the invaluable support provided by the Miami Valley Regional Computer Forensics Laboratory, and the Ohio Internet Crimes Against Children Task Force, the U.S. Marshals Service, the HSI Attache London Office, and the assistance of the Justice Department’s Office of International Affairs in Castle’s extradition.
Assistant U.S. Attorney Sheila Lafferty with the Southern District of Ohio and Trial Attorney Mi Yung Claire Park with the Department of Justice’s Child Exploitation and Obscenity Section (CEOS) are representing the United States in the case.
An indictment is merely an accusation, and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Statement of Attorney General Eric Holder<br /> on the Ongoing Investigation into Explosions in BostonRead the Press Release
The Attorney General released the following statement today on the ongoing investigation into the explosions in Boston:
“I want to express my deepest sympathies to the victims of yesterday’s heinous attack in Boston, to those who suffered injuries, and to those who lost friends and loved ones. All of you will be in my thoughts and prayers.
“As our nation struggles to make sense of this attack, I want to assure the citizens of Boston – and all Americans – that the U.S. Department of Justice, the FBI, and all of our federal, state, and local partners are working tirelessly to determine who was responsible for these unspeakable acts, and to make certain they are held accountable to the fullest extent of the law and by any means available to us. To this end, I have directed that the full resources of the Department be deployed to ensure that this matter is fully investigated. We will continue working closely with the Boston Police Department and the Massachusetts State Police – who have performed superbly – to respond to this tragedy, to maintain a heightened state of security, and to prevent any future attacks from occurring.
“As President Obama stated earlier today, we are treating this event as an act of terror. This morning, I met with the President and my fellow members of his national security team to discuss our continuing response. Although it is not yet clear who executed this attack, whether it was an individual or group, or whether it was carried out with support or involvement from a terrorist organization – either foreign or domestic – we will not rest until the perpetrators are brought to justice. The FBI is spearheading a multi-agency investigation through the Boston Joint Terrorism Task Force. They are devoting extensive personnel and assets to this effort – and have already begun conducting exhaustive interviews, analyzing evidence recovered from the scene, and examining video footage for possible leads. In addition, the ATF is providing bomb technicians, explosives assets, and other substantial investigative support. The DEA and U.S. Marshals Service are providing further assistance. And the Office of Justice Programs will coordinate victim support that the City of Boston and the Commonwealth of Massachusetts may request under the Anti-terrorism Emergency Assistance Program.
“As our active and comprehensive investigation unfolds, these federal assets are coordinating with prosecutors from the U.S. Attorney’s Office for the District of Massachusetts, the Justice Department’s National Security Division, and federal agencies across the government – including members of the Intelligence Community. This matter is still in the early stages, and it’s important that we let the investigation run its full course. I urge members of the public to remain calm, cooperate with law enforcement, and be vigilant. The FBI has set up a tip line – at 1-800-CALL-FBI – for anyone who has information, images, or details relating to yesterday’s explosions along the Boston Marathon route. We are particularly interested in reviewing video footage captured by bystanders with cell phones or personal cameras near either of the blasts. In an investigation of this nature, no detail is too small.
“Finally, I want to recognize and thank all of the brave law enforcement officials, firefighters, National Guardsmen, medical staff, bystanders, and other first responders in Boston yesterday afternoon who heard the explosions, or received reports of casualties, or saw the shattered glass and rising smoke, and rushed to provide assistance to those in need.
“Each of these remarkable women and men placed the safety of others above their own. Their heroic actions undoubtedly saved lives. And their stories of courage and selflessness remind us that – even in our darkest moments – the American people have always displayed an extraordinary capacity for resilience. We will always be strongest when we stand united. And although today our hearts are broken, my colleagues and I are resolved to bring those responsible for this cowardly act to justice. We will be relentless in our pursuit of the individual or group that carried out this attack, while staying true to our most sacred values. And – as our investigation continues, I am confident that our nation will recover, and that we will emerge from this terrible tragedy not only safer, but stronger, than ever before.”
Seattle and King County, Wash., Agree to Upgrade Combined Stormwater Systems to Protect Local Waters from Raw Sewage OverflowsRead the Press Release
King County, Wash. and the city of Seattle have agreed to invest in major upgrades to local sewage and combined stormwater collection, piping and treatment under settlements with the Department of Justice and the U.S Environmental Protection Agency (EPA). The state of Washington was a co-plaintiff and partner in these settlements.
The agreements are the result of extensive federal and state government cooperation and pave the way for employing more “green infrastructure” projects like green roofs, permeable pavements and urban runoff gardens, which help reduce demands on local sewer and stormwater systems.
“Today’s settlement will substantially reduce overflows of sewage-contaminated stormwater into the Puget Sound and other area waterways and significantly benefit the environment and health of residents of King County and Seattle,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The agreement provides a long-term planning approach to managing the area’s stormwater that integrates green infrastructure and requires improvements to system-wide sewer operations and maintenance.”
“EPA is working with cities and counties to find smart, effective solutions to reduce raw sewage and contaminated stormwater,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlements allow Seattle and King County to use innovative solutions, like green infrastructure, to help dramatically improve local water quality.”
“We’re pleased with the commitments King County and Seattle make in these legal agreements to reduce and control these overflows off Seattle’s shores,” said Maia Bellon, Washington state Director of Ecology. “The Consent Decrees allow flexibility in selecting and coordinating clean water projects, while setting firm dates to finish the job.”
Both agreements allow the city and county to use an integrated planning approach, which encourages communities to set their own clean water project priorities and invest in fixing the most pressing problems first. The settlements also require King County and Seattle to develop and implement a joint plan to improve system-wide operations and maintenance, since Seattle conveys the combined sewage it collects to King County’s system for treatment prior to discharge.KING COUNTY
Under the terms of the county settlement, King County will implement a long-term plan for controlling sewer overflows. By implementing these measures, King County will reduce its raw sewage discharges by approximately 95 to 99 percent, better protecting Puget Sound, Lake Washington and the Duwamish River from sewage-laced overflows. The improvements and upgrades are expected to cost approximately $860 million. In addition, King County will pay a civil penalty of $400,000.
The agreement allows the county to substitute green infrastructure projects, like green roofs, permeable pavements and urban gardens, which help reduce the demands on local sewer and stormwater systems, at four of its sewer overflow control projects.
Between 2006 and 2010, King County discharged approximately 900 million gallons of raw sewage to waters of the United States on an annual basis through discharges from its combined sewer system. During this time period, the county also violated the effluent limitations of its discharge permit, including fecal coliform at more than one of its wastewater treatment plants, and allowed wastewater to bypass secondary treatment at one of its wastewater treatment plants in violation of its discharge permit and the Clean Water Act.
CITY OF SEATTLE
Under the settlement with the city of Seattle, the city will develop and implement a long-term plan for better controlling sewer overflows and improve system-wide operations and maintenance. The city will also implement plans to control fats, oils and greases, and reduce debris being discharged by the system. In addition, the settlement provides Seattle with the opportunity to also use an integrated planning approach and to substitute green infrastructure at several of its sewer overflow control projects. By implementing these measures, the city will reduce its raw sewage discharges by approximately 99 percent at an estimated cost of $600 million. Seattle will also pay a civil penalty of $350,000.
Between 2007 and 2010, Seattle discharged approximately 200 million gallons of raw sewage into area waterways on an annual basis. During this time period, the city also improperly operated and maintained its sanitary sewer system, resulting in unauthorized discharges of raw sewage to public and private properties, including basement backups.
Keeping raw sewage and contaminated stormwater out of the waters of the United States is one of the EPA’s top priorities. Reductions in sewer and stormwater overflows are accomplished by obtaining cities’ commitments to implement timely, affordable solutions to these problems, which may also include the use of Integrated Municipal Stormwater and Wastewater Plans. This approach can also lead to more sustainable and comprehensive solutions, such as green infrastructure, that improve water quality and enhance community vitality.The settlement, lodged today in the U.S. District Court for the Western District of Washington, is subject to a 30-day public comment period and approval by the federal court. The consent decree can be viewed on the Justice Department website: http://www.justice.gov/enrd/Consent_Decrees.html
More information about the settlement: www.epa.gov/enforcement/water/cases/washington.html
More information about EPA’s national enforcement initiative: http://www.epa.gov/compliance/data/planning/initiatives/2011sewagestormwater.html
More information about Integrated Municipal Stormwater and Wastewater Plans: http://cfpub.epa.gov/npdes/integratedplans.cfm
Parker Drilling Company Resolves FCPA Investigation <br /> and Agrees to Pay $11.76 Million PenaltyRead the Press Release
Parker Drilling Company, a publicly listed drilling-services company, headquartered in Houston, has agreed to pay an $11.76 million penalty to resolve charges related to the Foreign Corrupt Practices Act (FCPA) for authorizing payment to an intermediary, knowing that the payment would be used to corruptly influence the decisions of a Nigerian government panel reviewing Parker Drilling’s adherence to Nigerian customs and tax laws. Acting Assistant Attorney General Mythili Raman of the Criminal Division and U.S. Attorney Neil H. MacBride for the Eastern District of Virginia announced the charges.
The investigation of Parker Drilling stemmed from the Justice Department’s Panalpina-related investigations, which previously yielded criminal resolutions with Panalpina and five oil and gas service companies and subsidiaries and resulted in more than $156 million in criminal penalties.
Today, the department filed a deferred prosecution agreement and a criminal information against Parker Drilling in U.S. District Court for the Eastern District of Virginia. The one-count information charges Parker Drilling with violating the FCPA’s anti-bribery provisions.
According to court documents, in 2001 and 2002, Panalpina World Transport (Nigeria) Limited, working on Parker Drilling’s behalf, avoided certain costs associated with complying with Nigeria’s customs laws by fraudulently claiming that Parker Drilling’s rigs had been exported and then re-imported into Nigeria. In late 2002, Nigeria formed a government commission, commonly called the Temporary Import (TI) Panel, to examine whether Nigeria’s Customs Service had collected certain duties and tariffs that Nigeria was due. In December 2002, the TI Panel commenced proceedings against Parker Drilling. The TI Panel later determined that Parker Drilling had violated Nigeria’s customs laws and assessed a $3.8 million fine against Parker Drilling.
According to court documents, rather than pay the assessed fine, Parker Drilling contracted indirectly with an intermediary agent to resolve its customs issues. From January to May 2004, Parker Drilling transferred $1.25 million to the agent, who reported spending a portion of the money on various things including entertaining government officials. Emails in which the agent requested additional money from Parker Drilling referenced the agent’s interactions with Nigeria’s Ministry of Finance, State Security Service, and a delegation from the president’s office. Two senior executives within Parker Drilling at the time reviewed and approved the agent’s invoices, knowing that the invoices arbitrarily attributed portions of the money that Parker Drilling transferred to the agent to various fees and expenses. The agent succeeded in reducing Parker Drilling’s TI Panel fines from $3.8 million to just $750,000.
Under the terms of the agreement, the Justice Department agreed to defer prosecution of Parker Drilling for three years. Parker Drilling agreed, among other things, to implement an enhanced compliance program and internal controls capable of preventing and detecting FCPA violations, to report periodically to the department concerning Parker Drilling’s compliance efforts, and to cooperate with the department in ongoing investigations. If Parker Drilling abides by the terms of the deferred prosecution agreement, the department will dismiss the criminal information when the term of the agreement expires.
In entering into the deferred prosecution agreement with Parker Drilling, the Justice Department took into account a number of considerations. Parker Drilling conducted an extensive, multi-year investigation into the charged conduct; engaged in widespread remediation, including ending its business relationships with officers, employees, or agents primarily responsible for the corrupt payments, enhancing scrutiny of high-risk third-party agents and transactions, increasing training and testing requirements, and instituting heightened review of proposals and other transactional documents for all the company’s contracts; otherwise significantly enhanced its compliance program and internal controls; and agreed to continue to cooperate with the department in any ongoing investigation of the conduct.
Parker Drilling also reached a settlement of a related civil complaint filed by the U.S. Securities and Exchange Commission (SEC) charging Parker Drilling with violating the FCPA’s anti-bribery, books and records, and internal controls provisions. As part of that settlement, Parker Drilling agreed to pay $3.05 million in disgorgement and $1.04 million in prejudgment interest relating to those violations.
The criminal case is being prosecuted by Trial Attorney Stephen J. Spiegelhalter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jasmine Yoon of the U.S. Attorney’s Office for the Eastern District of Virginia, and is being investigated by the FBI. The department’s Office of International Affairs assisted in the investigation. The department also acknowledges and is grateful for the assistance of the Crown Prosecution Service, the United Kingdom’s Metropolitan Police Service, and SEC.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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 Mohammed Rezaian, of Novato, Calif. Rezaian is the 30th 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, Rezaian 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 Francisco and San Mateo counties, Calif . Rezaian 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. According to court documents, a forfeiture allegation was also included in the charges against Rezaian.
The department said Rezaian conspired with others to rig bids and commit mail fraud at public real estate foreclosure auctions in San Francisco and San Mateo counties beginning as early as July 2008 and continuing until about January 2011.
“As a result of this investigation, the Antitrust Division has thus far filed charges against 30 real estate investors in Northern California for their illegal activity at foreclosure auctions,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division will vigorously pursue the perpetrators of these fraudulent and anticompetitive schemes.”
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 Francisco and 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.
“Not only is bid rigging at public foreclosure auctions illegal, it also severely undermines the integrity of a fair and competitive marketplace,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The FBI will continue to investigate and pursue those who commit fraudulent anticompetitive practices at foreclosure auctions and work with those who have fallen victim to such selfish crimes.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
The charges 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 office at 415-436-6660 , visit www.justice.gov/atr/contact/newcase.htm, or call the FBI tip line at 415-553-74 00.
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.**
Joseph Mitchell Casil Sentenced for Concealment of A Material FactRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced today that defendant JOSEPH MITCHELL CASIL was sentenced by Chief Judge Frances Tydingco-Gatewood in the United States District Court, to twelve (12) months imprisonment for the offense of Concealment of a Material Fact. After defendant serves his term of imprisonment, he will be placed on supervised release for three years and required to perform community service.
Casil was aware that federal Marshals with the United States Marshals Service (USMS) were searching for a felony fugitive. Casil lied to the United States Marshals about the fugitive’s location. Casil’s lies to the Marshals caused the Marshals to unnecessarily extend their surveillance, but also delayed the arrest of the fugitive.
U.S. Attorney Limtiaco states, “This defendant interfered in the timely capture of a felony fugitive who was fleeing arrest for a methamphetamine distribution offense. An offense of this type places not only the United States Marshals at risk, but also members of the community who have a fleeing felon in their midst. Individuals who affirmatively mislead United States Marshals in the performance of their duties will face stiff penalties in the United States District Court.”
U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood (PSN) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in drug distribution, gang involvement and violent crime.
Assistant U.S. Attorney Rosetta San Nicolas prosecuted the case for the United States. U.S. Attorney Limtiaco commends the investigative efforts of the United States Marshals Service.
Former Investment Banker and His Associate Plead Guilty in San Francisco to Insider Trading SchemeRead the Press Release
A former San Francisco investment banker and his college friend both pleaded guilty today for their roles in an insider trading scheme involving two impending corporate mergers, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Northern District of California Melinda Haag.
Jauyo Lee, aka “Jason Lee,” 29, of New York, and Victor Chen, 29, of Sunnyvale, Calif., both pleaded guilty before U.S. District Judge Richard Seeborg in the Northern District of California to one count of conspiracy to commit securities fraud and one count of securities fraud. Lee and Chen were charged in a criminal information on March 21, 2013.
“Insider trading undermines ordinary investors’ faith in our financial markets, and the Justice Department has zero tolerance for it,” said Acting Assistant Attorney General Raman. “Today's guilty pleas show that you cannot trade on inside information, pocket the profit and expect to escape responsibility. Having now admitted their conduct, Mr. Lee and Mr. Chen must face the consequences.”
“Securities professionals cannot exploit their positions of trust to enrich themselves and their friends,” said U.S. Attorney Haag. “Those tempted to corrupt our markets in this manner should know: the government will get to the bottom of suspicious trading and prosecute securities fraud vigorously.”
According to the plea agreements, Lee, who worked as an investment banker in the San Francisco office of Leerink Swann LLC, disclosed inside information to Chen, a friend from college, about two impending mergers involving Leerink clients. Between Aug. 26, 2009, and Sept. 5, 2009, Lee disclosed inside information to Chen about the merger of Leerink’s client, Syneron Medical Ltd., and Candela Corporation, a medical device company publicly traded on the NASDAQ stock market. Chen used the inside information to buy shares of Candela. After the merger was announced, Candela’s stock price increased more than 40 percent and Chen sold his shares for a gain of approximately $62,589.
Between June 1 and 13, 2010, Lee also provided Chen with inside information about the impending merger of Somanetics Corporation and a subsidiary of Covidien plc. Leerink was the lead financial advisor to Somanetics, which also was publicly traded on the NASDAQ. Chen used the inside information to buy shares and options of Somanetics. Following the merger announcement, the price of Somanetics stock increased more than 30 percent and Chen ultimately realized a profit of approximately $547,510.
Lee and Chen are scheduled for sentencing on July 23, 2013, before Judge Seeborg. The maximum penalty for conspiracy to commit securities fraud is five years in prison, and the maximum penalty for securities fraud is 20 years in prison.
This case is being prosecuted by Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Robert S. Leach of the Northern District of California. The prosecution is the result of a one-year investigation by the FBI with substantial assistance from the Chicago Regional Office of the Securities and Exchange Commission, which initiated a civil enforcement action against Lee and Chen and referred the matter to the Department of Justice.
This prosecution 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.