District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Bộ Tư Pháp Đạt Được Thỏa Thuận Tiếp Cận Ngôn Ngữ với Văn Phòng Cảnh Sát Trưởng Quận Alameda tại CaliforniaRead the Press Release
Bộ Tư Pháp hôm nay thông báo rằng Bộ đã đạt được thỏa thuận giải quyết với Văn Phòng Cảnh Sát Trưởng Quận Alameda (Alameda County Sheriff’s Office, hoặc ACSO) tại California để giải quyết cuộc điều tra về việc liệu ACSO có tuân thủ các nghĩa vụ không phân biệt đối xử theo Tiêu Đề VI của Đạo Luật Dân Quyền Năm 1964 (Tiêu Đề VI) hay không.
Theo các điều khoản của thỏa thuận, ACSO đã đồng ý thực hiện một số bước để cải thiện khả năng tiếp cận ngôn ngữ cho những Cá Nhân Có Trình Độ Tiếng Anh Hạn Chế (Limited English Proficiency, hoặc LEP) trong phạm vi quyền hạn của mình. Tiêu Đề VI cấm các tổ chức nhận hỗ trợ tài chính liên bang phân biệt đối xử dựa trên chủng tộc, màu da và quốc gia xuất thân. Sự đối xử khác biệt dựa trên ngôn ngữ nói, bao gồm việc loại trừ hoặc từ chối các quyền lợi của các chương trình và dịch vụ dành cho người LEP, có thể cấu thành hành vi phân biệt đối xử dựa trên quốc gia xuất thân vi phạm Tiêu Đề VI.
Trợ Lý Tổng Chưởng Lý Kristen Clarke thuộc Bộ Phận Dân Quyền của Bộ Tư Pháp cho biết: "Bộ Phận Dân Quyền của Bộ Tư Pháp cam kết đảm bảo rằng các cơ quan thực thi pháp luật của quốc gia chúng ta có thể phục vụ và bảo vệ mọi người trong cộng đồng của họ, bất kể trình độ Tiếng Anh của họ có hạn chế hay không". “Thông qua thỏa thuận này, Văn Phòng Cảnh Sát Trưởng Quận Alameda đã chứng minh cam kết của mình và đã thực hiện những bước tiến lớn hướng tới việc cải thiện các dịch vụ cho cộng đồng mà văn phòng này phục vụ.”
Cuộc điều tra của bộ phận này về ACSO bắt đầu sau khi nhận được thông tin nêu lên mối lo ngại rằng những cá nhân LEP có thể không nhận được các dịch vụ ngôn ngữ đầy đủ trong các cuộc gặp gỡ với nhân viên ACSO.
Thông qua thỏa thuận này, ACSO sẽ thiết lập chỉ thị tiếp cận ngôn ngữ chính thức trên toàn văn phòng, chỉ định một thành viên trong đội ngũ nhân viên làm Điều Phối Viên LEP cho ACSO, cung cấp đào tạo cho nhân viên về hỗ trợ ngôn ngữ, cải thiện kiểm soát chất lượng để yêu cầu các dịch vụ hỗ trợ ngôn ngữ chính xác và được đánh giá chất lượng đồng thời trải qua giai đoạn giám sát của bộ.
Thỏa thuận này là một phần của Sáng Kiến tiếp Cận Ngôn Ngữ Cho Cơ Quan Thực Thi Pháp Luật (Law Enforcement Language Access Initiative, hoặc LELAI) của bộ, một nỗ lực trên toàn quốc nhằm hỗ trợ các cơ quan thực thi pháp luật vượt qua rào cản ngôn ngữ để phục vụ và bảo vệ cộng đồng tốt hơn cũng như đảm bảo an toàn cho các sĩ quan. Dưới sự chỉ đạo của Bộ Phận Dân Quyền, sáng kiến này cung cấp các nguồn lực hỗ trợ kỹ thuật và các công cụ có thể giúp cơ quan thực thi pháp luật của tiểu bang và địa phương cung cấp quyền tiếp cận ngôn ngữ có ý nghĩa cho những cá nhân LEP; tích cực thu hút các cơ quan thực thi pháp luật muốn xem xét, cập nhật và/hoặc củng cố các chính sách, kế hoạch và đào tạo về quyền tiếp cận ngôn ngữ của họ; và củng cố sự kết nối giữa các cơ quan thực thi pháp luật, các bên liên quan trong cộng đồng và những nhóm dân số LEP.
Thông tin bổ sung về Bộ Phận Dân Quyền có tại trang mạng www.justice.gov/crt và thông tin về trình độ Tiếng Anh hạn chế và Tiêu Đề VI có tại trang mạng www.lep.gov. Để biết thêm thông tin về LELAI, vui lòng truy cập trang mạng www.lep.gov/law-enforcement. Công chúng có thể báo cáo các trường hợp có khả năng vi phạm quyền công dân tại trang mạng civilrights.justice.gov/report/.
Ang Departamento ng Hustisya ay Nakakuha ng Kasunduan sa Pag-access sa Wika sa Opisina ng Alameda County Sheriff sa CaliforniaRead the Press Release
Inanunsyo ngayon ng Departamento ng Hustisya na naabot nito ang isang kasunduan sa pagresolba sa Opisina ng Alameda County Sheriff (ACSO) sa California na nagresolba sa pagtatanong kung ang ACSO ay sumusunod sa mga obligasyon nito na walang diskriminasyon sa ilalim ng Title VI ng Civil Rights Act of 1964 (Title VI)
Sa ilalim ng mga tuntunin ng kasunduan, sumang-ayon ang ACSO na gumawa ng ilang hakbang upang mapabuti ang pag-access sa wika para sa mga indibidwal na may limitadong kasanayan sa Ingles (LEP) sa nasasakupan nito. Ipinagbabawal ng Title VI ang mga entity na tumatanggap ng pederal na tulong pinansyal mula sa diskriminasyon batay sa lahi, kulay at bansang pinagmulan. Ang pagkakaiba-iba ng pagtrato batay sa wikang sinasalita, kabilang ang pagbubukod o pagtanggi sa mga benepisyo ng mga programa at serbisyo sa mga taong may LEP, ay maaaring bumuo ng diskriminasyon sa pinagmulang bansa na lumalabag sa Title VI.
“Ang Dibisyon ng Mga Karapatang Sibil ng Departamento ng Hustisya ay nakatuon sa pagtiyak na ang mga ahensyang nagpapatupad ng batas ng ating bansa ay maaaring maglingkod at maprotektahan ang lahat sa kanilang mga komunidad, hindi alintana kung mayroon silang limitadong kasanayan sa Ingles,” sabi ni Assistant Attorney General Kristen Clarke ng Dibisyon ng Mga Karapatang Sibil ng Departamento ng Hustisya. “Sa pamamagitan ng kasunduang ito, ipinakita ng Opisina ng Alameda County Sheriff ang kanilang pangako at gumawa ng mga pangunahing hakbang patungo sa pagpapabuti ng mga serbisyo sa mga komunidad na pinaglilingkuran nito."
Ang pagtatanong ng departamento sa ACSO ay nagsimula pagkatapos makatanggap ng impormasyong naghahayag ng mga alalahanin na ang mga indibidwal na may LEP ay maaaring hindi makatanggap ng sapat na mga serbisyo sa wika sa panahon ng pakikipagtagpo sa mga tauhan ng ACSO.
Sa pamamagitan ng kasunduang ito, ang ACSO ay magtatatag ng isang pormal, pang-opisina na direktiba sa pag-access sa wika, magtatalaga ng miyembro ng mga tauhan nito bilang LEP Coordinator para sa ACSO, magbibigay ng mga pagsasanay sa kawani sa tulong sa wika, pagbutihin ang mga kontrol sa kalidad upang mangailangan ng tumpak at kalidad ng mga serbisyo ng tulong sa wika at sumailalim sa isang panahon ng pagsubaybay ng departamento.
Ang kasunduang ito ay bahagi ngLaw Enforcement Language Access Initiative(LELAI) ng departamento, isang pagsisikap sa buong bansa na tulungan ang mga ahensyang nagpapatupad ng batas sa pagharap sa mga hadlang sa wika upang mas mapagsilbihan at maprotektahan ang mga komunidad at panatilihing ligtas ang mga opisyal. Sa pangunguna ng Dibisyon ng Mga Karapatang Sibil, ang inisyatiba ay nagbibigay ng mga mapagkukunan ng teknikal na tulong at mga tool na makakatulong sa estado at lokal na pagpapatupad ng batas na magbigay ng makabuluhang access sa wika sa mga indibidwal na may LEP; apirmatibong nakikipag-ugnayan sa mga ahensyang nagpapatupad ng batas na gustong suriin, i-update at/o palakasin ang kanilang mga patakaran sa pag-access sa wika, mga plano at pagsasanay; at pinapalakas ang koneksyon sa pagitan ng mga ahensyang nagpapatupad ng batas, mga stakeholder ng komunidad at mga populasyon na may LEP.
Ang karagdagang impormasyon tungkol sa Dibisyon ng Mga Karapatang Sibil ay makukuha sa www.justice.gov/crt at ang impormasyon tungkol sa limitadong kasanayan sa Ingles at Title VI ay available sa www.lep.gov. Higit pang impormasyon sa LELAI ay available sa www.lep.gov/law-enforcement. Maaaring mag-ulat ang mga miyembro ng publiko ng mga posibleng paglabag sa karapatang sibil sa civilrights.justice.gov/report/.
Owners of Florida Labor-Staffing Companies Make Initial Appearance on Tax and Immigration Fraud and Money Laundering ChargesRead the Press Release
Two Ukrainian nationals made their initial appearance yesterday on a superseding indictment returned by a federal grand jury in Miami charging them with crimes related to labor-staffing companies they operated in Florida. The two men were extradited from the Kingdom of Thailand to the United States last week.
According to the superseding indictment, between August 2007 and July 2021, Oleg Oliynyk, Oleksandr Yurchyk and others owned and operated a series of labor-staffing companies in South Florida, including Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC and Tropical City Group LLC. The indictment alleges that the defendants, through these staffing companies, facilitated the employment in the hospitality industry of non-resident aliens who were not authorized to work in the United States. In addition, Oliynyk and Yurchyk allegedly conspired to defraud the IRS by, among other things, not withholding Social Security, Medicare and income taxes from these workers paychecks, and causing false corporate tax returns for the labor-staffing companies to be filed with the IRS.
Both defendants were charged with conspiracy to defraud the United States, conspiracy to harbor non-resident aliens and induce them to remain in the country and conspiracy to commit money laundering. If convicted, the defendants each face a maximum penalty of five years in prison on the conspiracy to defraud the United States charge, a maximum penalty of 10 years in prison on the conspiracy to harbor aliens and induce them to remain in the United States charge and a maximum penalty of 20 years in prison on the money laundering conspiracy charge. Each count also carries the possibility of a fine and supervised release upon completion of any sentence of incarceration. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Markenzy Lapointe for the Southern District of Florida made the announcement.
The Department of Homeland Security, Homeland Security Investigations and IRS Criminal Investigation are investigating the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition of Oliynyk and Yurchyk. The United States also thanks the Embassy of the United States in Thailand - Regional Security Office and Thai law enforcement partners including the Royal Thai Police and Office of the Attorney General for their valuable assistance.
Senior Litigation Counsel Sean Beaty and Trial Attorneys Matthew C. Hicks and Wilson R. Stamm of the Tax Division and Senior Litigation Counsel Christopher J. Clark of the U.S. Attorney's Office for the Southern District of Florida are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Omaha Man Sentenced for Conspiracy to Distribute Fentanyl PillsRead the Press Release
United States Attorney Susan Lehr announced that Zacharie Stinson, 31, of Omaha, Nebraska, was sentenced September 24, 2024, in federal court in Omaha for conspiracy to distribute fentanyl. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Stinson to 57 months’ imprisonment. There is no parole in the federal system. After Stinson’s release from prison, he will begin a 3-year term of supervised release.
On three occasions in March and April of 2023, DEA agents and task force officers saw Stinson meet with an individual who later sold fentanyl pills to a cooperator and an undercover agent. On April 7, 2023, agents executed a search warrant at Stinson’s residence in Omaha. Inside, agents found approximately 250 fentanyl pills. Agents also recovered approximately 135 fentanyl pills from Stinson’s person. During a post-Miranda interview, Stinson admitted that he was a fentanyl pill user who had started selling pills within the last year. Stinson told agents that he would purchase approximately 500 pills every two weeks and sell some to other people.
Co-defendants Rafael Magana and Lucas Ehly, both 31 and from Omaha, have pleaded guilty and are scheduled to be sentenced in December.
This case was investigated by the Drug Enforcement Administration and the Metro Drug Task Force.
Justice Department Sues Visa for Monopolizing Debit MarketsRead the Press Release
The Justice Department filed a civil antitrust lawsuit today against Visa for monopolization and other unlawful conduct in debit network markets in violation of Sections 1 and 2 of the Sherman Act.
Filed in the U.S. District Court for the Southern District of New York, the complaint alleges that Visa illegally maintains a monopoly over debit network markets by using its dominance to thwart the growth of its existing competitors and prevent others from developing new and innovative alternatives.
According to the complaint, more than 60% of debit transactions in the United States run on Visa’s debit network, allowing it to charge over $7 billion in fees each year for processing those transactions. The complaint further alleges that Visa illegally maintains its monopoly power by insulating itself from competition. For example, Visa wields its dominance, enormous scale, and centrality to the debit ecosystem to impose a web of exclusionary agreements on merchants and banks. These agreements penalize Visa’s customers who route transactions to a different debit network or alternative payment system. In so doing, the complaint alleges, Visa locks up debit volume, insulates itself from competition, and smothers smaller, lower-priced competitors. Visa also induces would-be competitors to become partners instead of entering the market as competitors by offering generous monetary incentives and threatening punitive additional fees. As the complaint alleges, Visa coopted the competition because it feared losing share, revenues, or being displaced by another debit network altogether.
“We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market,” said Attorney General Merrick B. Garland. “Merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service. As a result, Visa’s unlawful conduct affects not just the price of one thing – but the price of nearly everything.”
Debit transactions are an important and popular part of the U.S. financial system. Millions of Americans prefer or must use debit for online and in-person purchases. Visa dominates debit network markets that facilitate these transactions, charging significant fees and stifling competition in the process. Visa’s systematic efforts to limit competition for debit transactions have resulted in billions of dollars in additional fees imposed on American consumers and businesses and slowed innovation in the debit payments ecosystem. Through this lawsuit, the Justice Department seeks to restore competition to this vital market on behalf of the American public.
“Anticompetitive conduct by corporations like Visa leaves the American people and our entire economy worse off,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “Today’s action against Visa reminds those who would stifle competition rather than competing on price or investing in innovation that the Justice Department will never hesitate to enforce the law on behalf of the American people.”
“Visa fears competition and innovation, and instead chooses unlawful cooperation and monopolization,” said Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Visa abuses its power over its customers and buys off would-be rivals at the expense of American consumers, merchants, banks, and the competitive process itself. Today’s lawsuit holds Visa accountable for its conduct in a market that forms the backbone of American commerce.”
Visa maintains enormous scale on both sides of the debit market — with merchants and their banks and with consumers and their banks — and the complaint alleges that Visa’s exclusionary practices extend, deepen, and protect what it refers to as an “enormous moat” around its business. When faced with the possibility that smaller debit networks or new technology entrants would threaten that position, Visa engaged in a deliberate and reinforcing course of conduct to cut off competition and prevent rivals from gaining the scale, share, and data necessary to compete for customers’ business:
- Smaller Debit Networks: Visa uses leverage based on the large number of transactions that must run over Visa’s payment rails to impose expansive volume commitments on merchants and their banks, as well as on financial institutions that issue debit cards. These agreements are priced so that, unless all or nearly all debit volume runs over Visa’s payment rails, large disloyalty penalties can be imposed on all Visa transactions. Merchants cannot afford to use Visa’s smaller competitors for transactions where options do exist, even when those competitors offer lower per-transaction prices.
- Tech Entrants: As Visa’s internal documents make clear, Visa feared that some technology companies and fintech startups with “network ambitions” would cut Visa out as the middleman between merchants, consumers, and their banks by offering a better or cheaper payment product. Visa aimed to stop that development by entering into agreements to pay potential competitors to partner instead of innovating. As Visa’s then-CFO put it: “Everybody is a friend and partner. Nobody is a competitor.”
In 2020, the Justice Department filed a civil antitrust lawsuit to stop Visa from acquiring Plaid, a technology company that powers fintech apps developing disruptive options for online debit payments. The companies abandoned their planned $5.3 billion merger.
Visa Inc. is a Delaware corporation headquartered in San Francisco. Visa has a global operating income of $18.8 billion and an operating margin of 64% in 2022. North America is among Visa’s most profitable regions with 2022 operating margins of 83%. Visa charges roughly $8 billion in network fees on U.S. debit volume annually. Globally, Visa processes $12.3 trillion in total payment volume.
Former Omaha Woman Sentenced for Theft from a Program Receiving Federal FundsRead the Press Release
United States Attorney Susan Lehr announced that Carolynne R. Parker, also known as Carolynne R. Noffsinger, age 51, formerly of Omaha, Nebraska, was sentenced September 23, 2024, in federal court in Lincoln, Nebraska for theft from a program receiving federal funds. Parker currently resides in Maineville, Ohio. Senior United States District Judge John M. Gerrard sentenced Parker to 21 months’ imprisonment. There is no parole in the federal system. After Parker’s release from prison, she will begin a 3-year term of supervised release.
In imposing the sentence, Senior Judge Gerrard commented that in 24 years as a Judge, he had “never had anyone take less responsibility” for their actions than Parker.
In December 2017, a local family practice medical clinic, Fallbrook Family Health Center, hired Carolynne Parker as a consultant. Parker had reached out to the medical community advertising her consulting business – Acute Practice Solutions (APS).
As a consultant with the medical clinic, Parker assisted with a government program called CPC+, which provided medical practices with financial resources to improve quality of care and reduce the number of unnecessary services for patients. Parker’s responsibilities included reaching out and reminding patients to schedule preventative care appointments, as well as documenting and then reporting to the government that care so that the clinic would be reimbursed.
Parker’s consultant contract ended in March 2018. However, Parker expressed how much she enjoyed working at the clinic and, in July of 2018, was hired as the clinic’s chief operating officer (COO) to continue to expand the clinic’s value-based care practice, as well as handle general office management duties. The job duties included handling staffing issues, paying the bills, billing insurance, managing employee benefits, payroll, and general accounting.
As the COO, Parker had significant authority over the business of the clinic. For example, she exclusively did their payroll and banking.
In August of 2019, IRS agents showed up at the clinic and told the doctors they were behind on employment tax payments. Parker told the doctors she would fix the issue, telling them she had forgotten to send in a piece of paper. Concerned that the IRS generally did not stop by to pick up paperwork, staff members at the clinic became concerned about Parker’s activities. That same month, at a monthly staff meeting, Parker told the clinic they had $300,000 more in additional expenses then in the previous year and she could not explain why. Concerned about the state of the clinic’s finances under Parker, the Fallbrook’s owners asked for an explanation. Parker was unable to provide an answer and was terminated from her employment.
After Parker was terminated, several accountants were consulted to help run the business side of the clinic. Their review indicated that the clinic’s finances had been horribly mismanaged by Parker. Further investigation uncovered that Parker had repeatedly changed her salary over the course of her employment, at times inflating it by as much as 45%. Parker also directly deposited money from the clinic into her personal account without permission on multiple occasions. These transactions ranged from $500-$2,800. Finally, Parker continued to write checks to her consulting company, even though the contract had ended in March of 2018. The first fraudulent check was written by the defendant the day after the previous office manager left.
Investigators found a total of $27,800 in unauthorized direct deposits from the clinic to Parker, $16,608.38 in overpayment of wages, after Parker set her salary for payroll purposes higher than agreed upon and $64,960 in unauthorized checks written by Parker to her consulting firm for work that she never did. In sum, the evidence showed that the defendant stole $109,368.38 from the clinic. A review of Parker’s personal accounts showed most of the stolen funds were spent on travel or retail expenses such as clothes or coffee to benefit herself.
In addition to directly stealing from Fallbrook, Parker neglected to fulfill many of her job duties. At the time of her termination, she had run up around $50,000 in fines and penalties for the clinic payable to the IRS due to her non-payment of various taxes. She also left many other bills unpaid, leading several venders to terminate contracts with the clinic and attempt to send them to collection. Parker also did not bill insurance correctly and it is estimated that over a million dollars was withheld from Fallbrook for medical work done because of her actions.
Parker entered a plea of no-contest to the charges. Evidence was presented during the course of her sentencing hearing. In reviewing Parker’s version of the events, Senior Judge Gerrard observed that Parker was “incapable of telling the truth.”
At the time of her sentencing, Parker was working with a health care agency in Ohio, working with substance abuse patients.
This case was investigated by agents and investigators with the Lincoln Police Department and the Federal Bureau of Investigation, both of whom would remind local businesses to carefully divide office management duties and to rely on a series of checks and balances.
Former Ohio Municipal Prosecutor and Former Criminal Defendant Charged with Bribery ConspiracyRead the Press Release
An indictment was unsealed today charging two Ohio men with a bribery scheme in which a municipal prosecutor agreed to help a criminal defendant with his pending cases in exchange for auto repair work.
According to the indictment, Nicholas Graham, 52, of Warren, was a prosecutor who represented the City of Warren in Warren Municipal Court. Brian Votino, 52, of Niles, had two criminal cases pending in the same court. The indictment alleges that, in October 2019, Graham and Votino agreed that Graham would take action to benefit Votino with respect to Votino’s criminal cases in return for Votino performing repairs to Graham’s truck. To cover up the bribery arrangement, Graham instructed Votino through an intermediary to falsify a bill for the repair services and not to tell Votino’s criminal defense lawyer. According to the indictment, Graham and Votino ultimately carried out their agreement. In exchange for the repair work by Votino, Graham took official action to reduce the charges against Votino and advocated for a lenient sentence.
Graham and Votino are charged with one count of conspiracy, one count of honest services wire fraud, and one count of Hobbs Act extortion. If convicted of all counts, they each face a maximum penalty of 45 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio; and Special Agent in Charge Gregory D. Nelsen of the FBI Cleveland Field Office made the announcement.
The FBI Cleveland Field Office is investigating the case.
Trial Attorney Blake J. Ellison of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Elliot Morrison for the Northern District of Ohio are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Court Permanently Shuts Down Illinois Tax PreparerRead the Press Release
A federal court in the Northern District of Illinois today permanently enjoined Joliet, Illinois, tax return preparer Sir Michael Joseph Davenport and his company My Unity Tax Financial & Tax Preparation LLC (My Unity Tax) from preparing federal tax returns for others and from owning or operating any tax return preparation businesses in the future. Davenport agreed to the permanent injunction entered against him and his business.
The civil complaint filed in the case alleges that Davenport and his company prepared false and fraudulent federal tax returns to improperly reduce the customers’ tax liabilities or to obtain tax refunds to which the customers are not entitled. The complaint alleges that Davenport and My Unity Tax routinely prepared tax returns for customers reporting fictitious businesses for customers, minimal or no income and large fabricated or manipulated expenses to fraudulently reduce taxable income. As alleged in the complaint, in most cases these businesses did not exist.
The complaint also alleges that, despite being issued a Preparer Tax Identification Number (PTIN) by the IRS, Davenport operated as a “ghost preparer” by not signing customers’ tax returns, nor did he identify himself as the paid preparer by reporting his PTIN on the returns he prepared for paying customers. As further alleged by the United States, Davenport and My Unity Tax used software programs intended for personal rather than professional use to prepare their clients’ tax returns, so when the returns were filed, it appeared that customers filed the returns themselves.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid ghost preparers and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Davenport Stipulated judgment PI.pdfAdam G. Brief Appointed as Acting U.S. Trustee for Northern Illinois and WisconsinRead the Press Release
Adam G. Brief has been appointed by Attorney General Merrick B. Garland as the Acting U.S. Trustee for Northern Illinois and Wisconsin (Region 11) effective Sept. 28, the Executive Office for U.S. Trustees announced today. Brief replaces Patrick S. Layng, who is retiring after 36 years of dedicated service to the Justice Department, including the last 14 years as the U.S. Trustee in Region 11. Under 28 U.S.C. § 585(a), the Attorney General may fill U.S. Trustee vacancies by appointing an Acting U.S. Trustee.
Brief has served as the Assistant U.S. Trustee in charge of the Chicago field office since joining the U.S. Trustee Program in 2015 after 14 years in private practice. Brief’s effective coordination with the U.S. Attorney’s Office for the Northern District of Illinois has contributed to several successful high-profile criminal prosecutions. In addition to being a frequent speaker at legal seminars and conferences, Brief teaches a lawyering skills course at the University of Illinois Chicago Law School. He received his bachelor’s degree in history and political science from Rutgers University Livingston College and his law degree from Seton Hall University. After law school, Brief was a term law clerk for Judge Stephen Stripp of the U.S. Bankruptcy Court for the District of New Jersey. For six years before joining the USTP, while still in private practice, he served as an investigator appointed by the Supreme Court of New Jersey to a district ethics committee.
The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.
Readout of Justice Department’s Civil Rights Division’s Meeting with Jewish Community StakeholdersRead the Press Release
The Justice Department yesterday convened its quarterly interagency meeting with Jewish community stakeholders. Attorney General Merrick B. Garland provided remarks to those at the meeting, underscoring the department’s commitment to addressing hate crimes. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division outlined relevant enforcement efforts across the department and highlighted actions to prevent and combat discrimination and hate crimes. Assistant Secretary of Education Catherine Lhamon of the Department of Education’s Office for Civil Rights also addressed the attendees and highlighted efforts to ensure safe learning environments at schools, colleges, and universities.
Justice Department leadership, including representatives from the Civil Rights Division, FBI, Community Relations Service, Office of Justice Programs, Office of Privacy & Civil Liberty, and the Office of Public Integrity, heard from participating organizations about hate crimes and incidents, campus safety, and civil rights protections around the election, among other areas. Representatives from other federal government agencies were also in attendance, including Officer Shoba Sivaprasad Wadhia of the Department of Homeland Security’s Office of Civil Rights and Civil Liberties and representatives from the Equal Employment Opportunity Commission.
Combating hate crimes, protecting religious freedom, and addressing claims of discrimination are among the division’s top priorities. Yesterday’s meeting represents the department’s ongoing efforts to engage with organizations and stakeholders on issues affecting Jewish communities.
The department has continued to prosecute hate crimes, including recent cases involving a North Carolina man charged with making antisemitic threats to a rabbi in Georgia; California man who pleaded guilty to shooting two Jewish men, leaving an Los Angeles synagogue; Michigan man convicted and sentenced for conspiring with other members of a white supremacist group, the Base, to victimize Jewish and Black people, including desecrating a Jewish synagogue in Hancock, Michigan, with Neo-Nazi symbols; Mississippi man who pleaded guilty to cyberstalking and harassing synagogues and Jewish-owned businesses in Pennsylvania; Indiana man sentenced for sending violent antisemitic threats to the Anti-Defamation League; and the leaders of the Terrorgram Collective, a transnational terrorist group for using digital platforms to solicit others to engage in hate crimes and terrorist attacks against immigrants and other groups based on hate-fueled bigotry and white supremacy.
In May, Assistant Attorney General Clarke recognized Jewish Heritage Month and delivered remarks at the annual federal inter-agency Holocaust Remembrance Program.
In March, the department hosted a community safety webinar for Jewish community stakeholders, during which the department released resource documents designed to help the public better understand federal civil rights laws, including laws that prohibit violence and discrimination on the basis of religion and national origin, and protections afforded by the Religious Land Use and Institutionalized Persons Act, a law that prohibits discriminatory land use decisions, and Title II of the Civil Rights Act of 1964 in public accommodations.
If you believe that you or someone else experienced religious or national origin discrimination, you can report a civil rights violation online at civilrights.justice.gov. If you believe you are a victim or a witness of a hate crime, you can report it to the FBI by calling 1-800-CALL-FBI or submitting a tip at tips.fbi.gov. Learn more about the department’s work on hate crimes here.
Assistant Attorney General Clarke meets with Jewish stakeholders during the quarterly interagency meeting.Readout of Director Rachel Rossi’s Trip to KansasRead the Press Release
Director Rachel Rossi of the Office for Access to Justice (ATJ) traveled to Kansas this week to engage with stakeholders about the access to justice challenges rural communities face and to discuss innovative solutions. The visit built upon the ongoing work of ATJ to address the rural access to justice gap in the United States.
Director Rossi began by meeting with the Executive Director of Kansas Legal Services, a grantee of the Legal Services Corporation that serves all 105 counties in Kansas, to discuss the importance of civil legal aid, the barriers that low-income Kansans face in addressing their civil legal needs and the operational challenges of providing legal services in rural areas of the state. Director Rossi highlighted various initiatives, including the office’s work to expand and modernize the Federal Government Pro Bono Program — which mobilizes federal government employees to engage in pro bono work, often in partnership with legal service providers, and the online resource developed through the Legal Aid Interagency Roundtable to make federal funding opportunities more accessible for legal service providers.
Following her meeting with Kansas Legal Services, Director Rossi met with the Dean of the University of Kansas (KU) School of Law and Directors of the Law School’s Legal Aid Clinic, which offers students the opportunity to represent low-income clients in civil, criminal and juvenile cases under the guidance of supervising attorneys. Director Rossi and KU Law faculty discussed the recruitment and retention issues plaguing public defense and youth defense systems in Kansas. The clinical professors and Dean shared unique insight into current challenges and potential solutions to several access to justice issues in Kansas, focusing on creative recruitment strategies to encourage law students to pursue public interest and public defense careers.
Later in the day, Director Rossi met with the Executive Director and the Director of Special Projects for the Kansas State Board of Indigents’ Defense Services (BIDS), which oversees Kansas’ 18 regional public defender offices and manages the statewide assigned counsel program, legal services for people in prison, non-capital appellate services and capital defense. Director Rossi shared ATJ’s Public Defense Resource Hub, a digital compilation of federal resources and materials that can be used to support public defense. The meeting included a discussion of caseload and workload standards, the public defense recruitment and retention crisis and the expansion of public defense in Kansas. Following her meeting with BIDS, Director Rossi met with the Federal Public Defender for the District of Kansas, who also serves as the chair of the Defender Services Advisory Group, to discuss issues federal public defenders are facing, implementation of the Report and Recommendations Concerning Access to Counsel at the Federal Bureau of Prisons’ Pretrial Facilities and the innovative defense provided laptop program within the district that ensures discovery access for detained clients.
On Thursday, Sept. 19, Director Rossi met with the Rural Justice Initiative Committee, which was created in 2022 by the Kansas Supreme Court to collect information and data on unmet legal needs and the availability of legal help in rural Kansas and to issue a report and recommendations to address gaps and promote effective solutions. Director Rossi also met with the Supreme Court’s Access to Justice Committee and the Language Access Committee to discuss their programs in rural Kansas and ways in which ATJ can advance access to justice in rural areas. Director Rossi also had the opportunity to meet with a group of state court judges and Kansas Supreme Court justices who serve on these committees to hear their perspective on the role that the judiciary plays in addressing access to justice barriers in the state. She highlighted the work of ATJ to convene all 40 state access to justice commissions quarterly, and the office’s work to expand language access under the leadership of the department-wide language access coordinator.
Director Rossi next met with the Kansas Farm Bureau (KFB) Legal Foundation, an organization established by the Kansas Farm Bureau to provide legal education, information and research for those directly engaged in agriculture or related enterprises. They discussed the civil legal help provided by the KFB Legal Foundation to agricultural communities, including programs to educate farmers and ranchers about significant legal issues such as farm bankruptcy and probate issues, farm ownership transitions, agricultural land use and zoning and more. They also discussed the need for more attorneys and legal help in rural communities, and how the KFB Legal Foundation recently responded through the launch of a Rural Law Practice Grant to help defray the educational costs of law school and to encourage new attorneys to locate their legal practice in rural Kansas.
To conclude the trip, Director Rossi traveled to Washburn University Law School (Washburn Law), in Topeka, Kansas, to meet with faculty, administrators and students participating in Washburn Law’s Rural Law program that focuses on identifying rural externship and employment opportunities and providing support for students to transition into rural law practice. They discussed the program’s effort to expand the range of accelerated and remote study options to lower the barriers to rural students seeking a degree. This engagement highlighted the perspectives of law students, many with backgrounds from rural communities, on effective solutions to the rural lawyer shortage.
Director Rossi and ATJ staff met with faculty at the University of Kansas School of Law. Director Rossi and representatives from Kansas State Board of Indigents’ Defense Services. Director Rossi and ATJ staff convened with representatives from the Kansas Rural Justice Initiative, Access to Justice and Language Access Committees. Director Rossi engaged with Washburn University School of Law faculty and former and present law students.Ohio Restaurant Owner Convicted of Employment Tax CrimesRead the Press Release
After five days of trial, a federal jury convicted Richard Bhoolai, 65, of Cincinnati, today for failing to pay taxes he withheld from employees’ wages at three restaurants he owned and operated.
According to evidence presented at trial, Bhoolai owned and operated Richie’s Fast Food Restaurants Inc., an S-Corporation used to operate three fried chicken restaurants in the Cincinnati area since 1991. Bhoolai was responsible for withholding Social Security, Medicare and income taxes from employees’ wages and paying those funds over to the IRS. Bhoolai employed between 22 and 34 employees between at least 2017 and 2018. During that time, he withheld taxes from employees’ wages but did not pay them over to the IRS. Prior to that time, Bhoolai had not paid over such taxes from earlier years and the IRS had assessed a penalty against him for failing to do so. Instead of paying over the taxes, Bhoolai used money from the businesses for his personal benefit, including gambling.
The jury found Bhoolai guilty of eight counts of failing to pay over taxes for four quarters in 2017 and four quarters in 2018. Bhoolai’s sentencing date has not yet been set. He faces a maximum penalty of five years in prison for each failure to pay taxes count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Douglas R. Cole for the Southern District of Ohio presided over the jury trial.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Kenneth Parker for the Southern District of Ohio made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Alexandra K. Fleszar of the Justice Department’s Tax Division and Assistant U.S. Attorney Ebunoluwa Taiwo for the Southern District of Ohio prosecuted the case.
Notorious Mexican Cartel Leader Convicted for International Drug Trafficking and Firearms OffensesRead the Press Release
A federal jury convicted Ruben Oseguera-Gonzalez, also known as El Menchito, today of conspiring to distribute five kilograms or more of cocaine and 500 grams or more of methamphetamine while knowing and intending that they would be imported into the United States, and using, carrying, and brandishing firearms, including destructive devices, in furtherance of the drug trafficking conspiracy, following a two-week jury trial in U.S. District Court for the District of Columbia.
According to court documents and evidence presented at trial, between 2007 and 2017, Oseguera-Gonzalez, 34, led an international drug trafficking organization responsible for importing large quantities of methamphetamine and cocaine from Mexico into the United States. Oseguera-Gonzalez was the second in command of the Cartel de Jalisco Nueva Generación (CJNG), which is based in the State of Jalisco in Mexico. The CJNG is one of the most dangerous drug cartels in Mexico. Oseguera-Gonzalez personally used firearms, destructive devices, murder, and kidnapping to control the drug trafficking organization. Oseguera-Gonzalez also ordered his subordinates to shoot down a Mexican military helicopter so that he could escape capture by Mexican law enforcement.
“El Menchito led the Jalisco Cartel’s efforts to use murder, kidnapping, and torture to build the Cartel into a self-described ‘empire’ by manufacturing fentanyl and flooding the United States with massive quantities of lethal drugs. Today, fentanyl is the deadliest drug threat the United States has ever faced,” said Attorney General Merrick B. Garland. “El Menchito now joins the growing list of high-ranking Cartel leaders that the Justice Department has convicted in an American courtroom. We are grateful to our Mexican law enforcement partners for their extensive cooperation and sacrifice in holding accountable leaders of the Jalisco Cartel.”
“Ruben Oseguera-Gonzalez pioneered the manufacturing of fentanyl in Mexico to help build his father’s Jalisco Cartel into one of the world’s most powerful drug syndicates. His crimes caused horrific violence and death in the United States, Mexico, and around the globe,” said Deputy Attorney General Lisa Monaco. “Today’s guilty verdict demonstrates that our prosecutors and agents, working with our Mexican law enforcement partners, will relentlessly pursue justice against the leaders of the drug trafficking organizations who destroy lives and poison our communities.”
“As second-in-command of CJNG, Ruben Oseguera-Gonzalez used extreme violence to traffic massive amounts of methamphetamine and cocaine into the United States,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “His conviction underscores the Criminal Division’s commitment to disrupting and dismantling organizations that manufacture and distribute deadly drugs into our communities. Today’s verdict also sends a powerful message to the cartel leadership: we will work with our domestic and international law enforcement partners to find you and bring you to justice. We are especially grateful to the Mexican authorities for their substantial assistance in this case.”
“Today’s guilty verdict sends a clear message that the DEA will stop at nothing to investigate and dismantle criminal drug networks that threaten the safety and health of the American people,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “As one of the highest-ranking members of the Jalisco Cartel, Oseguera-Gonzalez was responsible for pushing vast quantities of cocaine, methamphetamine, and fentanyl into the United States while engaging in violence, kidnapping, and bribery to build and protect the Jalisco Cartel. I commend the men and women of the DEA Los Angeles Field Division for their outstanding work on this case.”
According to the evidence presented at trial, from 2012 to 2015, Oseguera-Gonzalez oversaw the manufacture of more than three million pounds of methamphetamine in one area of Mexico. In April 2015, Oseguera-Gonzalez personally directed the distribution of over 55,000 pounds of cocaine. According to trial testimony, in October 2013, Oseguera-Gonzalez made plans to “do it big” with counterfeit oxycontin pills—just before the fentanyl epidemic began in the United States. According to witness testimony, the defendant said in 2015 that he was “building an empire with . . . fentanyl.” Oseguera-Gonzalez was arrested by Mexican authorities on local charges in June 2015. He remained detained in Mexico until his extradition to the United States in February 2020. While in prison in Mexico, Oseguera-Gonzalez continued to control the CJNG, negotiating drug transactions and approving the purchase of firearms and destructive devices, including .50 caliber firearms and 40 mm grenades.
Oseguera-Gonzalez personally used extreme violence to grow and control the cartel. For example, when five men owed Oseguera-Gonzalez money for drugs in the United States, Oseguera-Gonzalez violently killed all five men. On another occasion, the defendant shot one of his drivers in the head a close range. In an intercepted message, Oseguera-Gonzalez also described having 13 people tied up—one of whom he decided to release only after the man agreed to make fentanyl pills for Oseguera-Gonzalez.
Oseguera-Gonzalez also amassed an arsenal of weapons. His hitmen, which he called the Special Forces of the High Command, used the weapons to protect him and help him escape capture by Mexican authorities. For example, on May 1, 2015, the defendant’s hitmen—acting on Oseguera-Gonzalez’s personal orders—shot down a Mexican armed forces helicopter while 18 soldiers and police were on board. At least nine people on board the helicopter died as a result of Oseguera-Gonzalez’s order. Oseguera-Gonzalez’s men used an Iranian-made rocket-propelled grenade and a .50 caliber belt-fed firearm to shoot down the helicopter. Both weapons were painted with “CJNG” and a pixel camouflage pattern unique to Oseguera-Gonzalez’s hitmen.
Less than two months after escaping capture, Oseguera-Gonzalez was arrested in Jalisco, Mexico. When he was surrounded by soldiers and police, he brandished an assault weapon and grenade launcher, demanding to be released because he was a member of the CJNG. The weapon Oseguera-Gonzalez used to threaten police bore the same pixel camouflage pattern and was emblazoned with CJNG and Oseguera-Gonzalez’s nicknames: Menchito, 02, and Jr.
Oseguera-Gonzalez faces a mandatory minimum penalty of 40 years in prison and a statutory maximum penalty of life plus 30 years in prison. A sentencing hearing is scheduled for Jan. 10, 2025. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA Los Angeles Field Division investigated the case with the assistance of the U.S. Marshals Service. The Justice Department’s Office of International Affairs provided critical assistance in securing the extradition of Oseguera-Gonzalez and in obtaining important evidence for the trial. The Criminal Division’s Office of Enforcement Operations provided significant assistance. The Justice Department thanks Mexican authorities for their assistance in securing the extradition of Oseguera-Gonzalez and in securing evidence and testimony presented in court.
Acting Deputy Chief Kaitlin Sahni and Trial Attorneys Kate Naseef, Jonathan R. Hornok, and Lernik Begian of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Notorio líder de un cártel mexicano declarado culpable de delitos de tráfico internacional de drogas y armas de fuegoRead the Press Release
Un jurado federal hoy declaró culpable a Rubén Oseguera González, también conocido como “El Menchito”, de conspirar para distribuir cinco kilogramos o más de cocaína y 500 gramos o más de metanfetaminas a sabiendas y con la intención de que serían importadas a los Estados Unidos, y por usar, portar y blandir armas de fuego, incluyendo dispositivos destructivos, en apoyo de la conspiración para el tráfico de drogas, tras un juicio con jurado de dos semanas en el Tribunal de Distrito de los EE. UU. para el Distrito de Columbia.
Según los documentos judiciales y las pruebas presentadas en el juicio, entre 2007 y 2017, Oseguera González, de 34 años, dirigió una organización internacional de tráfico de drogas responsable de importar grandes cantidades de metanfetaminas y cocaína de México a Estados Unidos. Oseguera González era el segundo al mando del Cartel Jalisco Nueva Generación (CJNG), con sede en el estado de Jalisco, México. El CJNG es uno de los cárteles de la droga más peligrosos de México. Oseguera González utilizaba personalmente armas de fuego, artefactos destructivos, asesinatos y secuestros para controlar la organización de narcotráfico. Oseguera González también ordenó a sus subordinados derribar un helicóptero militar mexicano para poder evitar su captura por las fuerzas del orden mexicanas.
“El Menchito dirigió los esfuerzos del Cártel de Jalisco por utilizar el asesinato, el secuestro y la tortura para convertir el cártel en un autodenominado ‘imperio’ mediante la fabricación de fentanilo y la inundación de Estados Unidos con cantidades masivas de drogas letales. Hoy en día, el fentanilo es la amenaza de drogas más mortífera que jamás se ha enfrentado Estados Unidos”, declaró el fiscal general Merrick B. Garland. “El Menchito se une ahora a la creciente lista de altos dirigentes de cárteles que el Departamento de Justicia ha condenado en un tribunal estadounidense. Estamos agradecidos a nuestros socios mexicanos del orden público por su amplia cooperación y sacrificio para hacer rendir cuentas a los líderes del Cártel de Jalisco”.
“Rubén Oseguera González fue pionero en la fabricación de fentanilo en México para ayudar a construir el Cártel de Jalisco de su padre en uno de los sindicatos de la droga más poderosos del mundo. Sus delitos causaron violencia y muertes terribles en Estados Unidos, México y en todo el mundo”, declaró la vicefiscal general Lisa Monaco. “El veredicto de culpabilidad de hoy demuestra que nuestros fiscales y agentes, en colaboración con nuestros socios mexicanos del orden público, perseguirán implacablemente la justicia contra los líderes de las organizaciones de narcotráfico que destruyen vidas y envenenan nuestras comunidades”.
“Como segundo al mando del CJNG, Rubén Oseguera González utilizó la violencia extrema para traficar cantidades masivas de metanfetaminas y cocaína a los Estados Unidos”, dijo la vicefiscal general adjunta principal Nicole M. Argentieri, jefa de la División Penal del Departamento de Justicia. “Su condena subraya el compromiso de la División Penal de desarticular y desmantelar las organizaciones que fabrican y distribuyen drogas mortales en nuestras comunidades. El veredicto de hoy también envía un poderoso mensaje a los dirigentes de los cárteles: trabajaremos con nuestros socios nacionales e internacionales del orden público para encontrarlos y llevarlos ante la justicia. Estamos especialmente agradecidos a las autoridades mexicanas por su importante ayuda en este caso”.
“El veredicto de culpabilidad de hoy envía un mensaje claro de que la DEA no se detendrá ante nada para investigar y desmantelar las redes criminales de drogas que amenazan la seguridad y la salud del pueblo estadounidense”, dijo la administradora Anne Milgram de la Administración para el Control de Drogas (DEA). “Como uno de los miembros de más alto rango del Cártel de Jalisco, Oseguera González fue responsable de introducir grandes cantidades de cocaína, metanfetaminas y fentanilo en los Estados Unidos, al tiempo que se dedicaba a la violencia, el secuestro y el soborno para construir y proteger el Cártel de Jalisco. Felicito a los hombres y mujeres de la División de Los Ángeles de la DEA por su extraordinario trabajo en este caso”.
Según las pruebas presentadas en el juicio, de 2012 a 2015, Oseguera González supervisó la fabricación de más de tres millones de libras de metanfetaminas en una zona de México. En abril de 2015, Oseguera González dirigió personalmente la distribución de más de 55,000 libras de cocaína. Según el testimonio en el juicio, en octubre de 2013, Oseguera González hizo planes para «hacerla en grande» con pastillas de oxicontina falsificadas - justo antes de que comenzara la epidemia de fentanilo en Estados Unidos. Según el testimonio de testigos, el acusado dijo en 2015 que estaba “construyendo un imperio con... fentanilo”. Oseguera González fue detenido por las autoridades mexicanas por cargos locales en junio de 2015. Permaneció detenido en México hasta su extradición a Estados Unidos en febrero de 2020. Mientras estuvo en prisión en México, Oseguera González continuó controlando el CJNG, negociando transacciones de drogas y aprobando la compra de armas de fuego y dispositivos destructivos, incluidas armas de fuego del calibre .50 y granadas de 40 mm.
Oseguera González personalmente actuaba con violencia extrema para hacer crecer y controlar el cártel. Por ejemplo, Oseguera González mató violentamente a cinco hombres que le debían por drogas vendidas en Estados Unidos. En otra ocasión, el acusado disparó a quemarropa en la cabeza a uno de sus conductores. En un mensaje interceptado, Oseguera González también relató que tenía atadas a 13 personas, una de las cuales decidió liberar sólo después de que el hombre accediera a fabricar pastillas de fentanilo para él.
Oseguera González también acumuló un arsenal de armas. Sus sicarios, a los que llamaba Fuerzas Especiales del Alto Mando, utilizaban las armas para protegerlo y ayudarlo a evadir la captura por las autoridades mexicanas. Por ejemplo, el 1 de mayo de 2015, los sicarios del acusado -actuando bajo las órdenes personales de Oseguera González- derribaron un helicóptero de las fuerzas armadas mexicanas mientras 18 soldados y policías se encontraban a bordo. Al menos nueve personas a bordo del helicóptero murieron a consecuencia de la orden dada por Oseguera González. Para derribar el helicóptero, los hombres de Oseguera González utilizaron una granada propulsada por cohete de fabricación iraní y un arma de fuego de calibre 50 alimentada por cinturón. Ambas armas estaban pintadas con las siglas “CJNG” y un patrón de camuflaje de píxeles exclusivo de los sicarios de Oseguera González.
Menos de dos meses después de escapar de la captura, Oseguera González fue detenido en Jalisco (México). Cuando fue rodeado por soldados y policías, blandió un arma de asalto y un lanzagranadas, exigiendo que lo dejaran en libertad porque era miembro del CJNG. El arma que Oseguera González utilizó para amenazar a la policía tenía el mismo patrón de camuflaje de píxeles y estaba adornada con las siglas del CJNG y los apodos de Oseguera González: Menchito, 02 y Jr.
Oseguera González se enfrenta a una pena mínima obligatoria de 40 años de prisión y a una pena máxima legal de cadena perpetua más 30 años de prisión. La vista para dictar sentencia está prevista para el 10 de enero de 2025. Un juez de tribunal federal de distrito determinará la sentencia tras considerar las directrices para la imposición de penas de EE. UU. y otros factores legales.
La División de Los Ángeles de la DEA investigó el caso con la ayuda del Servicio de Alguaciles de Estados Unidos. La Oficina de Asuntos Internacionales del Departamento de Justicia prestó una ayuda fundamental para conseguir la extradición de Oseguera González y obtener importantes pruebas para el juicio. La Oficina de Operaciones de Aplicación de la Ley de la División Penal prestó una ayuda significativa. El Departamento de Justicia agradece a las autoridades mexicanas su ayuda para conseguir la extradición de Oseguera González y para asegurar las pruebas y testimonios presentados ante el tribunal.
La jefa adjunta en funciones, Kaitlin Sahni, y los fiscales litigantes Kate Naseef, Jonathan R. Hornok y Lernik Begian, de la Unidad de Narcóticos y Drogas Peligrosas de la División Penal, están llevando el caso.
Este esfuerzo forma parte de una operación de las Fuerzas Especiales de Lucha contra la Droga y la Delincuencia Organizada (OCDETF). La OCDETF identifica, desarticula y desmantela las organizaciones delictivas de más alto nivel que amenazan a Estados Unidos, utilizando un enfoque multiinstitucional, dirigido por fiscales e informado por datos de inteligencia. Puede obtenerse más información sobre el programa OCDETF en www.justice.gov/ocdetf.
Leader of $4M International Telemarketing Scheme ConvictedRead the Press Release
A federal jury in North Carolina convicted a man today for his role in orchestrating a years-long telemarketing scheme that defrauded victims in the United States from a call center in Costa Rica.
According to court documents and evidence presented at trial, Roger Roger, 40, of Costa Rica, led a fraudulent telemarketing scheme in which co-conspirators, who falsely posed as U.S. government officials, contacted victims in the United States to tell them that that they had won a substantial “sweepstakes” prize. After convincing victims, many of whom were elderly, that they stood to receive a significant financial prize, the co-conspirators told victims that they needed to make a series of up-front payments before collecting their supposed prize, purportedly for items such as taxes, customs duties, and other fees. Co-conspirators used a variety of means to conceal their true identities, including Voice over Internet Protocol technology, which made it appear as though they were calling from Washington, D.C., and other locations in the United States. Roger personally called victims from Costa Rica, using fake names and documents to trick the victims into believing they had won a sweepstakes prize. He also recruited and directed co-conspirators to mislead victims on the phone and to transmit victims’ payments from the United States to Costa Rica. The evidence at trial showed that Roger and his co-conspirators stole over $4 million from victims.
Roger was convicted of one count of conspiracy to commit mail and wire fraud, four counts of wire fraud, one count of conspiracy to commit money laundering, and two counts of international money laundering. The defendant faces a maximum penalty of 25 years in prison on each of the conspiracy to commit mail and wire fraud and the wire fraud counts, because the jury found that these counts involved telemarketing that victimized at least 10 people over the age of 55, and 20 years in prison on each of the conspiracy to commit money laundering and money laundering counts. Sentencing will occur at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Dena J. King for the Western District of North Carolina; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division; Special Agent in Charge Karen Wingerd of the IRS Criminal Investigation (IRS-CI) Cincinnati Field Office; and Special Agent in Charge Robert DeWitt of the FBI Charlotte Field Office made the announcement.
The USPIS Atlanta Division, IRS-CI Cincinnati Field Office, and FBI Charlotte Field Office investigated the case. The La Grande, Oregon Police Department and Union County District Attorney Victim Assistance Office provided valuable assistance. The Justice Department’s Office of International Affairs worked with law enforcement partners in Costa Rica to secure Roger’s arrest and extradition.
Trial Attorneys Andrew Jaco and Amanda Fretto Lingwood of the Criminal Division’s Fraud Section are prosecuting the case.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.
Texas Couple Charged in Multimillion-Dollar Tax Refund Fraud SchemeRead the Press Release
A federal grand jury in Tyler, Texas, returned an indictment yesterday charging a Texas husband and wife with crimes related to their conspiracy to defraud the United States by seeking fraudulent tax refunds.
According to the indictment, from 2017 to 2023, Larry and Rebecca Kalmowitz filed false tax returns in the name of estates and trusts that sought $42 million in fraudulent refunds, ultimately receiving over $23 million from the IRS. The returns allegedly falsely reported interest income and large amounts of income tax withholdings to the IRS that resulted in large tax refunds to which they were not otherwise entitled. The Kalmowitzs allegedly created bank accounts in the names of the estates and trusts and deposited the fraudulently obtained tax refund checks into those accounts. They allegedly used the proceeds to purchase real property that they placed in the name of a nominee and to purchase luxury vehicles, including a Ford Mustang Shelby GT500 and a Mercedes-Benz GLS450. When the IRS attempted to recover the fraudulent funds, the Kalmowitzs allegedly took steps to obstruct the recovery by, among other things, filing false forms to support the claimed income and withholdings and a false form to release a federal lien.
Both were charged with mail fraud, money laundering, conspiracy to defraud the United States and filing a false claim against the United States. If convicted, the Kalmowitzs each face a maximum penalty of 20 years in prison for each count of mail fraud, a maximum penalty of 10 years for each count of money laundering, a maximum penalty of five years in prison for the conspiracy to defraud the United States and a maximum penalty of five years in prison for each count of filing a false claim against the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Damien Diggs for the Eastern District of Texas made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Zachary Cobb and Daniel Lipkowitz of the Justice Department’s Tax Division and Assistant U.S. Attorney Ryan Locker for the Eastern District of Texas are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Real Estate Executive Sentenced for Conspiracy to Falsify Financial StatementsRead the Press Release
A California real estate executive was sentenced today to one year and one day in prison, followed by two years of supervised release, and ordered to pay a fine of $200,000 for engaging in an extensive multi-year conspiracy to falsify financial statements.
According to court documents and evidence presented at sentencing, Tyler Ross, 38, of San Francisco, and formerly of Michigan, served as co-chief executive officer of ROCO Real Estate LLC and ROCO Management LLC, both of which were based in Bloomfield Hills, Michigan. The ROCO companies operated as a commercial real estate investment firm engaged in the business of purchasing, managing, and selling multi-family residential properties, such as apartment complexes, located in Michigan and elsewhere.
Between 2015 and 2019, Ross and his co-conspirators caused false financial documents, including historical operating statements that deleted or reduced actual expenses, to be submitted to mortgage lending businesses for underperforming ROCO properties, making the properties appear to be more profitable than they were in order to obtain refinancing or to avoid the exercise of certain contractual provisions by the lenders to protect themselves. Ross, who was a licensed attorney, acknowledged that he personally falsified historical operating statements during the conspiracy and directed other members of the conspiracy to assist with the creation and submission of falsified financial statements to mortgage lending businesses.
The court also found that Ross falsified financial documents in connection with the 2019 sale of 43 ROCO properties to a privately held real estate investment company. Ross supplied the false financial information to the buyer of the properties and ultimately to the financial institution that issued a $481 million loan for the transaction. Ross himself received over $2 million in proceeds from the 2019 sale.
Ross pleaded guilty in September 2023 to one count of conspiring to commit an offense against the United States.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Dawn N. Ison for the Eastern District of Michigan; Special Agent in Charge Korey Brinkman of the U.S. Federal Housing Finance Agency Office of Inspector General (FHFA OIG) Central Region; Special Agent in Charge Shawn Rice of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD OIG); and Acting Assistant Director James C. Barnacle Jr. of the FBI’s Criminal Investigative Division made the announcement.
The FHFA OIG, HUD OIG, and FBI investigated the case.
Trial Attorneys Andrew Tyler and Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew J. Yahkind for the Eastern District of Michigan prosecuted the case.
Anyone with information concerning similar fraud can report it by contacting the FHFA OIG Hotline at 800-793-7724 or via the web at www.fhfaoig.gov/ReportFraud#hotlineform.
Justice Department Seeks to Bar Texas Tax Return PreparerRead the Press Release
The Justice Department filed a civil complaint today in the U.S. District Court for the Northern District of Texas to enjoin John T. Ajuma, aka John Trobisch, from preparing federal tax returns for others.
The complaint alleges Ajuma prepared nearly 11,000 federal income tax returns from 2018 through 2024 through two sole proprietorships named “Destiny Tax Service” and “Momentum Tax Express,” which Ajuma operated from the same location in Hurst, Texas. According to the complaint, in a substantial number of these tax returns, Ajuma significantly overstated customers’ tax refunds by fabricating or inflating unreimbursed employee expense deductions, falsifying child tax credits by reporting bogus child and dependent care expenses and falsely claiming energy, education and other credits to which customers were not entitled.
By repeatedly understating customers’ tax liabilities, the complaint alleges that Ajuma may have caused the United States harm of almost $20 million in lost tax revenue from 2018 through 2022.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
John Ajuma Complaint for PI.pdfJustice Department Addresses Gender-Based Pay Discrimination in Lawsuit Against Wisconsin Department of Military AffairsRead the Press Release
The Justice Department has reached a settlement agreement to resolve a gender-based pay discrimination lawsuit filed in January 2023 against the Wisconsin Department of Military Affairs (WDMA). The lawsuit alleged that the WDMA discriminated against former employee Michelle Hartness, in violation of Title VII of the Civil Rights Act, when it offered her a lower salary than similarly or less qualified men for a director position in the Wisconsin Division of Emergency Management.
Title VII is a federal statute that prohibits pay discrimination and other forms of employment discrimination on the basis of sex, race, color, national origin or religion.
“It is time to close the gender pay gap which stands as one of the most pressing problems that we face in the labor market today. This settlement agreement demonstrates the Justice Department’s strong commitment to vindicating the rights of qualified job applicants and employees who are offered or paid less simply because they are women,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue to aggressively hold state and local government employers accountable when they unlawfully deny women the right to bring home the full paycheck they have rightly earned.”
Under the settlement agreement, WDMA will pay Ms. Hartness a $175,000 monetary award. By signing the agreement, WDMA also confirms that it maintains antidiscrimination and other personnel policies to prevent compensation discrimination, including a pay-setting policy to establish consistency in setting salaries, and that it trains personnel on the pay-setting policy.
Ms. Hartness filed a charge of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Milwaukee Area Office investigated the charge and found reasonable cause to believe that Ms. Hartness was discriminated against because of her sex. After unsuccessful conciliation efforts, the EEOC referred the charge to the Justice Department.
Senior Trial Attorneys Patricia Stasco, Chrisine Dinan and Catherine Sellers and Trial Attorney Young Choi of the Civil Rights Division’s Employment Litigation Section handled the case.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division and the Employment Litigation Section is available at www.justice.gov/crt/ and www.justice.gov/crt/employment-litigation-section.
Former Navy Sailor Stationed on Guam Sentenced to 71 Month in Federal Prison for Child Sexual Abuse MaterialsRead the Press Release
Hagatña – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announces that on September 12, 2024, Andrew Taylor Wood, age 26, from Stafford, Virginia, was sentenced to 71 months imprisonment in the U.S. District Court of Guam for Transportation of Child Sexual Abuse Material, in violation of 18 U.S.C. § 2252(a)(1) and (b)(1). The Court also ordered ten years of supervised release, $86,500 in restitution to 12 victims, and $100 mandatory assessment fee.
As a convicted sex offender, under the Sex Offender Registration and Notification Act, Taylor must register in every jurisdiction he resides, works, and goes to school.
From at least 2016 until 2022, Andrew Taylor Wood possessed, distributed, and transported images and videos depicting prepubescent minors and material that portrayed sadistic or masochistic conduct or other depictions of violence. Wood created Dropbox accounts for the purpose of uploading, storing, and distributing this material and shared links in online forums for the purpose of trading for access to additional material. Wood possessed numerous electronic devices used to store videos and images. He also transported these devices around the country as he changed duty stations with the U.S. Navy.
“I applaud the work of HSI and NCIS in bringing Wood to justice,” stated United States Attorney Anderson. “This case reveals how CSAM is spread through electronic means. Children remain victimized for life. We will continue to prioritize exploitation cases to keep our communities safe.”
“Today’s sentencing underscores our unwavering commitment to protecting the most vulnerable members of our society. The exploitation of children is a heinous crime, and HSI, in collaboration with our law enforcement partners, will continue to pursue justice for the victims, said HSI Special Agent in Charge Lucia Cabral-DeArmas. “We will use every tool at our disposal to ensure that those who engage in such reprehensible acts are held accountable to the fullest extent of the law.”
The case was investigated by Homeland Security Investigations and U.S. Naval Criminal Investigative Service. The case was prosecuted by Benjamin K. Petersburg, Assistant United States Attorney in the District of Guam.
This was a Project Safe Childhood (PSC) case, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit Justice.gov/PSC.
Two Acting U.S. Trustees Appointed for Region Encompassing Alaska, Idaho, Montana, Oregon and Washington and for Region Encompassing Colorado, Utah and WyomingRead the Press Release
Attorney General Merrick Garland has appointed two Acting U.S. Trustees, the Executive Office for U.S. Trustees announced today. Under 28 U.S.C. § 585(a), the Attorney General may fill U.S. Trustee vacancies by appointing an Acting U.S. Trustee.
Jonas V. Anderson has been appointed as the Acting U.S. Trustee for Alaska, Idaho, Montana, Oregon and Washington (Region 18). Anderson replaces Gregory M. Garvin, who has been appointed as the Acting U.S. Trustee for Colorado, Utah and Wyoming (Region 19). Garvin replaces Patrick S. Layng, who is retiring after 36 years of service to the Justice Department, including the last 10 years as the interim U.S. Trustee for Region 19.
The appointments of Anderson and Garvin are effective Sept. 28.
Anderson joined the U.S. Trustee Program (USTP) in 2010 as a trial attorney in the Las Vegas office through the Attorney General’s Honors Program after clerking for Judge Deanell Reece Tacha of the U.S. Court of Appeals for the Tenth Circuit. Anderson has served as the Assistant U.S. Trustee in charge of the USTP’s Eugene, Oregon, office since 2016, and for two years he served as the Acting Assistant U.S. Trustee of the Portland, Oregon, office. He received his Juris Doctor and Master of Legal Letters degrees from Duke University School of Law, a master’s degree from Yale University and a bachelor’s degree magna cum laude from Brigham Young University.
After seven years as the Acting U.S. Trustee in Region 18, Garvin will transition to a similar role in Region 19, where he has already been serving as the Assistant U.S. Trustee for the Denver field office since 2008. Before joining the USTP, Garvin was in private practice in the Kansas City area for 17 years focusing on commercial litigation and bankruptcy matters, including representing debtors in chapter 7 and 13 as well as individuals, small businesses and creditors in chapter 11. He received his bachelor’s degree and his law degree from the University of Kansas.
The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.
Readout of Justice Department’s Civil Rights Division’s Meeting LGBTQI+ Community StakeholdersRead the Press Release
The Justice Department convened on Monday its quarterly interagency meeting with LGBTQI+ community stakeholders. Members of the Office of the Attorney General and the LGBTQI+ Working Group of the Justice Department’s Civil Rights Division outlined relevant enforcement efforts across the department and highlighted actions to address discrimination in education and employment and combat hate crimes. Assistant Secretary of Education Catherine Lhamon of the Department of Education’s Office for Civil Rights also addressed the attendees and highlighted efforts to ensure safe learning environments at schools, colleges and universities.
Justice Department leadership, including representatives from the Civil Rights Division, FBI, Community Relations Service, Office of Justice Programs, Office on Violence Against Women, Office of Victims of Crimes and Office of Juvenile Justice and Delinquency Prevention, heard from participating organizations about discrimination faced by LGBTQI+ students, parents and teachers; barriers to access to gender-affirming medical care for LGBTQI+ people; health data privacy concerns; the need to increase intersex awareness; and hate crimes. Representatives from other government agencies, including the Departments of Education, Health and Human Services, Homeland Security, Veterans Affairs, Labor and State, as well as the Equal Employment Opportunity Commission, Consumer Financial Protection Bureau, Environmental Protection Agency, National Endowment of the Arts and AmeriCorps, were also in attendance.
Combating hate crimes and addressing claims of discrimination are among the division’s top priorities. Monday’s meeting represents the division’s ongoing efforts to engage with LGBTQI+ organizations and stakeholders on issues affecting LGBTQI+ communities.
The department has continued to prosecute hate crimes, including obtaining several life sentences for the perpetrator of the mass shooting at Club Q, an LGBTQI+ establishment in Colorado Springs, Colorado. The department also filed a statement of interest in a case challenging a policy in Florida schools prohibiting teachers from using personal titles and pronouns inconsistent with their sex assigned at birth and a statement of interest in a case challenging a Georgia school district’s alleged retaliation against a teacher for her support of LGBTQI+ students and her opposition to the hostile environment they were allegedly subject to as a result of bullying and harassment.
These and other efforts by the Civil Rights Division can be found on its website at its LGBTQI+ Working Group page.
Members of the LGBTQI+ Working Group convene for the quarterly interagency meeting with LGBTQI+ community stakeholders.Oak Street Health Agrees to Pay $60M to Resolve Alleged False Claims Act Liability for Paying Kickbacks to Insurance Agents in Medicare Advantage Patient Recruitment SchemeRead the Press Release
Oak Street Health, headquartered in Chicago and a wholly-owned subsidiary of CVS Health since 2023, has agreed to pay $60 million to resolve allegations that it violated the False Claims Act by paying kickbacks to third-party insurance agents in exchange for recruiting seniors to Oak Street Health’s primary care clinics.
The Anti-Kickback Statute prohibits anyone from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce referrals of patients or to provide recommendations of items or services covered by Medicare, Medicaid and other federally funded programs. Under the Medicare Advantage (MA) Program, also known as Part C, Medicare beneficiaries have the option to obtain their health care through privately-operated insurance plans known as MA plans. Some MA Plans contract with health care providers, including Oak Street Health, to provide their plan members with primary care services.
The United States alleged that, in 2020, Oak Street Health developed a program to increase patient membership called the Client Awareness Program. Under the Program, third-party insurance agents contacted seniors eligible for or enrolled in Medicare Advantage and delivered marketing messages designed to generate interest in Oak Street Health. Agents then referred interested seniors to an Oak Street Health employee via a three-way phone call, otherwise known as a “warm transfer,” and/or an electronic submission. In exchange, Oak Street Health paid agents typically $200 per beneficiary referred or recommended. These payments incentivized agents to base their referrals and recommendations on the financial motivations of Oak Street Health rather than the best interests of seniors. The settlement resolves allegations that, from September 2020 through December 2022, Oak Street Health knowingly submitted, and caused the submission of, false claims to Medicare arising from kickbacks to agents that violated the Anti-Kickback Statute.
“Health care providers that attempt to profit from kickbacks will be held accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “We are committed to rooting out illegal practices committed by Medicare Advantage providers, insurance agents and brokers that undermine the interests of federal health care programs and the patients they serve.”
“Kickbacks, in any form, have no place in our federal healthcare system” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “My office is alert for kickbacks that can subvert patient choice and defraud federal health care programs. This investigation and settlement help to ensure that patient choice is prioritized above a provider’s bottom line.”
“Kickbacks impose hidden costs on the federal health care system and compromise medical choice and decision-making,” said Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of the Inspector General (HHS-OIG). “Working determinedly with our law enforcement partners, HHS-OIG will continue to protect the integrity of federal health care programs, and we encourage the public to come forward with information about violative conduct.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Joseph Stinson. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Stinson v. Oak Street Health, et al., No. 20-cv-7381 (N.D. Ill.). As part of today’s resolution, Mr. Stinson will receive $9.9 million.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of Illinois, with assistance from HHS-OIG and the FBI.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney David G. Miller of the Justice Department's Civil Division and Assistant U.S. Attorney Jonathan C. Haile for the Northern District of Illinois handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Former U.S. Government Employee Sentenced to 30 Years in Prison for Sex OffensesRead the Press Release
A former U.S. government employee was sentenced today to 30 years in prison for drugging and sexually abusing numerous women in multiple countries, including photographing and video recording more than two dozen nude and partially nude women without their consent while they were unconscious or incapable of consenting.
According to court documents, Brian Jeffrey Raymond, 48, of La Mesa, California, was employed by the U.S. government. His last assignment was in Mexico City. There, he drugged and sexually assaulted several women in his U.S. government-leased housing. Additionally, between 2006 and 2020, in Mexico City and elsewhere, Raymond drugged and then photographed or video recorded 28 victims while they were nude or partially nude, and also admitted to drugging two others. Many of the recordings show Raymond touching and manipulating the victims’ bodies while they were unconscious and incapable of consent. Raymond deleted or attempted to delete explicit photographs and videos depicting the victims after learning about the criminal investigation.
“Brian Raymond sexually exploited dozens of women over the course of 14 years, including while he served abroad as a U.S. government employee,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today’s sentence underscores the Criminal Division’s commitment to prosecuting sexual abuse in violation of federal law — no matter where those violations occur or who commits them. We are grateful for the valuable partnership we have with the Mexican government and will continue to work with our domestic and international partners to pursue justice for victims of sexual exploitation.”
“When this predator was a government employee, he lured unsuspecting women to his government-leased housing and drugged them,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “After drugging these women, he stripped, sexually abused, and photographed them. Today’s sentence ensures that the defendant will be properly marked as a sex offender for life, and he will spend a substantial portion of the rest of his life behind bars.”
“This case demonstrates the strong commitment of the Diplomatic Security Service to work with our law enforcement partners here and abroad to investigate public servants in positions of trust who commit sexual assault anywhere in the world,” said Director Carlos F. Matus of the Department of State’s Diplomatic Security Service (DSS). “It is a good example of how DSS’s global presence enables our agency to serve as a bridge between U.S. and foreign law enforcement counterparts to assist in bringing those who commit such heinous crimes to justice.”
“For 14 years, Raymond exploited his trusted position as a U.S. government representative to lure women into his confidence,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “He then drugged and sexually assaulted them and took explicit photos and videos of them without their consent. The FBI thanks the brave women who shared information that furthered this investigation. We recognize our domestic and foreign law enforcement partners who helped bring Raymond to justice for his reprehensible crimes.”
In November 2023, Raymond pleaded guilty to one count of sexual abuse, one count of abusive sexual contact, one count of coercion and enticement, and one count of transporting obscene material. As part of the plea agreement, Raymond admitted to drugging and then engaging in nonconsensual sexual acts with four women and nonconsensual sexual contact with six women. Raymond further admitted to drugging and then creating obscene material depicting 28 women without their knowledge or permission, and drugging another two women.
Raymond was ordered to serve a lifetime of supervised release and to pay $260,000 in restitution to the victims. After his release from prison, Raymond will be required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
The DSS Office of Special Investigations, the DSS Computer Investigations and Forensics Division, and the FBI Washington Field Office investigated the case. The Justice Department’s Office of International Affairs and National Security Division provided valuable assistance. The FBI’s Legal Attaché office in Mexico City also provided especially valuable assistance.
The Justice Department gratefully acknowledges the government of Mexico, including the Fiscalía General de la República (FGR), the Fiscalía General de Justicia de la Ciudad de México, and the Secretaría de Relaciones Exteriores (SRE), for its extraordinary efforts, support, and cooperation during the investigation.
Trial Attorneys Angela Buckner and Katharine Wagner of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Meredith Mayer-Dempsey for the District of Columbia prosecuted the case. Trial Attorneys Clayton O’Connor and Elizabeth Nielsen and Paralegal Specialist Vanessa Douglas of HRSP; Assistant U.S. Attorneys Jonathan Hooks, Jolie Zimmerman, and Janani Iyengar for the District of Columbia; Victim Specialists Yvonne Bryant and Tonya Jones for the District of Columbia’s Victim Witness Unit; and Assistant U.S. Attorney April Russo for the Eastern District of Virginia also provided valuable assistance.
Former Assistant District Attorney Indicted on Bribery, Money Laundering Conspiracy, and Other Felony ChargesRead the Press Release
A federal grand jury in Lafayette, Louisiana, returned an indictment today charging a former Louisiana Assistant District Attorney with conspiracy to commit bribery, bribery, using his cell phone in furtherance of bribery, conspiracy to commit money laundering, and obstruction of justice.
According to court documents, Gary Haynes, 66, of Lafayette, conspired with Dusty Guidry, Leonard Franques, and others to solicit bribes and kickbacks and to accept things of value while Haynes was an Assistant District Attorney in the 15th Judicial District Attorney’s Office (the D.A.’s Office). According to the indictment, Haynes oversaw the D.A.’s Office’s Pretrial Intervention (PTI) program – a program that offered an alternative to criminal prosecution for certain criminal offenders. Haynes approved defendants to participate in the program and then directed them to take classes from Franques’ companies. Those defendants paid money to take classes through Franques’ companies to complete the program and obtain dismissal of the criminal charges against them from Haynes. Haynes, Guidry, and Franques agreed that Haynes would receive kickbacks in exchange for accepting people into the PTI program, directing those people to Franques’ companies, and then dismissing the charges against the people who enrolled in and paid for the courses that Franques’ companies provided.
Further, according to the charges in the indictment, Haynes and his co-conspirators discussed several ways to conceal the nature of the money that Haynes would receive from the kickback scheme, including having Haynes reactivate a defunct company during the conspiracy to hide the proceeds from the kickbacks. Finally, Haynes directed a coconspirator to alter, destroy, and conceal documents and records to prevent their availability in a future proceeding.
Haynes is charged with conspiracy to commit bribery concerning programs receiving federal funds, bribery concerning programs receiving federal funds, two counts of using his cell phone in aid of bribery, conspiracy to commit money laundering, and obstruction of justice. If convicted, he faces a maximum penalty of 65 years in prison.
Franques pleaded guilty on Jan. 12 to one count of conspiracy to commit bribery concerning programs receiving federal funds. Guidry pleaded guilty on March 23, 2023, to two counts of conspiracy to commit bribery concerning programs receiving federal funds and one count of bribery concerning programs receiving federal funds. Both Guidry and Franques are scheduled to be sentenced on Oct. 24.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Brandon Bonaparte Brown for the Western District of Louisiana made the announcement.
The FBI New Orleans Field Office and IRS Criminal Investigation are investigating the case.
Trial Attorneys Steven Loew and Trevor Wilmot of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys John Luke Walker and John Nickel for the Western District of Louisiana are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Doctor Charged in $32.7M Medicare Fraud SchemeRead the Press Release
A federal grand jury in Lafayette, Louisiana, returned an indictment today charging a Louisiana doctor for his role in a scheme to defraud Medicare of over $32.7 million by submitting claims for medically unnecessary definitive urine drug testing services.
According to court documents, Michael W. Dole, MD, 59, of Alexandria, owned and operated a pain management practice located in Alexandria, which had an in-house drug testing laboratory. From in or around January 2010 through July 2023, Dole allegedly billed Medicare over $32.7 million for definitive testing of routinely over 22 classes of drugs in urine specimens from nearly all his patients, despite a lack of documentation of use or suspicion of use of those drugs by the patients. It is alleged that Medicare subsequently reimbursed Dole over $11.7 million for the medically unnecessary urine drug testing claims, and Dole used the proceeds of the fraud on personal expenses.
Dole is charged with one count of conspiracy to commit health care fraud and five counts of health care fraud. If convicted, he faces a maximum penalty of 10 years in prison on each count.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Brandon B. Brown for the Western District of Louisiana; Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and Special Agent in Charge Lyonel Myrthil of the FBI New Orleans Field Office made the announcement.
HHS-OIG and the FBI New Orleans Field Office are investigating the case.
Trial Attorneys Samantha E. Usher and Kelly Z. Walters of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
California Restaurant Owner Convicted of Tax and COVID-19 Fraud SchemesRead the Press Release
A federal jury in San Diego convicted a California man yesterday of wire fraud, conspiracy and tax crimes for schemes to defraud COVID-19 relief programs and to file false tax returns.
According to court documents and evidence presented at trial, Leronce Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated restaurants in the San Diego area, including Streetcar Merchants in the North Park neighborhood. He conspired with others to underreport over $1.7 million in gross receipts on Rockstar Dough’s 2020 corporate tax return and COVID-19 relief applications. Suel’s businesses fraudulently received $1,773,245 million in COVID-related Paycheck Protection Program loans and Restaurant Revitalization Fund grants, two programs created to provide financial assistance to Americans suffering economic harm as a result of the COVID-19 pandemic. Suel and his co-conspirator misappropriated COVID-19 relief program funds by making substantial cash withdrawals from their business bank accounts, purchasing a home in Arkansas and keeping more than $2.4 million in cash in his bedroom.
Suel did not file timely tax returns for 2018 and 2019, despite being legally required to do so. In addition, during the period 2020 through 2022, Suel did not file personal returns that reported flow through income from his businesses and personal income he received from his business, including millions of dollars in cash he withdrew. In 2023, Suel filed false original and amended tax returns for several years, including personal returns for 2016 and 2017 that included false depreciable assets and business losses.
In total, Suel caused a tax loss to the IRS of $1,292,976.
Suel was convicted of wire fraud, conspiracy to commit wire fraud, tax evasion, conspiracy to defraud the United States, filing false tax returns and failing to file tax returns. He was acquitted of the money laundering charges.
Following the convictions, Suel agreed to forfeit $1,466,918 in U.S. currency.
Suel is scheduled to be sentenced on Dec. 13. He faces a maximum penalty of 30 years in prison for each count of wire fraud and conspiracy to commit wire fraud, a maximum penalty of five years in prison for tax evasion and conspiracy to defraud the United States, a maximum penalty of three years in prison for each count of filing false tax returns and a maximum penalty of one year in prison for each count of failing to file tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Tara K. McGrath for the Southern District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Julia Rugg of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Beeler for the Southern District of California are prosecuting the case.
Six Men Charged in Cockfighting OperationRead the Press Release
Six men were arrested and had their initial court appearances yesterday after being charged in a five-count indictment with violating the Animal Welfare Act in connection with a cockfighting operation. A federal grand jury sitting in Providence, Rhode Island, returned the indictment last week.
The indictment alleges that on March 6, 2022, Miguel Delgado, 73, hosted a series of individual cockfights, known as “derbies,” at his Providence home. Delgado is also charged with sponsoring and exhibiting roosters in an animal fighting venture on multiple dates, buying and transporting sharp instruments or “gaffs” for use in the cockfights and unlawfully possessing roosters for use in an animal fighting venture.
Onill Vasquez Lozada, 39, and Antonio Ledee Rivera, both of Rhode Island, were charged with unlawfully possessing roosters in April 2021 for use in an animal fighting venture and for sponsoring and exhibiting roosters at the March 2022 derby at Delgado’s home. Rivera was additionally charged in connection with an earlier derby at Delgado’s home.
Germidez Kingsley Jamie, 31; Jose Rivera, 67; and Luis Castillo, 35, all residents of Massachusetts, were charged with sponsoring and exhibiting roosters at an animal fighting venture at the March 2022 derby. Jamie and Jose Rivera are also charged with one count of buying and transporting gaffs for use in an animal fighting venture.
Cockfighting is a contest in which a person attaches a knife, gaff or other sharp instrument to the leg of a “gamecock” or rooster and then places the bird a few inches away from a similarly armed rooster. This results in a fight during which the roosters flap their wings and jump while stabbing each other with the weapons that are fastened to their legs. A cockfight ends when one rooster is dead or refuses to continue to fight. Commonly, one or both roosters die after a fight.
If convicted of Animal Welfare Act violations, the defendants each face a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Zachary A. Cunha for the District of Rhode Island made the announcement.
The Department of Agriculture’s Office of Inspector General (USDA-OIG), Postal Inspection Service, Food and Drug Administration’s Office of Criminal Investigation and Rhode Island Society for the Prevention of Cruelty to Animals investigated the case. Valuable assistance was provided by the U.S. Marshals Service, U.S. Fish and Wildlife Service’s Office of Law Enforcement, U.S. Customs and Border Protection, Rhode Island State Police, Massachusetts State Police, Animal Rescue League of Boston’s Law Enforcement Division and Providence, Woonsocket, and Attleboro Police Departments.
To report animal fighting crimes, contact your local law enforcement or the USDA-OIG’s complaint hotline.
Senior Trial Attorneys Gary Donner and Stephen Da Ponte of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney John P. McAdams for the District of Rhode Island are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Michigan Woman Sentenced to Prison for Conspiracy to Commit Sex Trafficking of a Minor in New OrleansRead the Press Release
A Michigan woman was sentenced today to five years in prison for conspiracy to commit sex trafficking of a minor.
According to court documents, from around December 2021 through around March 2022, Latesha Gardner, 30, of Flint, Michigan, and her boyfriend, Charles Cunigan, conspired to sex traffic a minor victim and used force, fraud, or coercion to carry out the conspiracy. Cunigan and Gardner transported the minor victim across state lines, from Tennessee to Illinois, Louisiana, and Texas, for the purpose of causing her to engage in commercial sex acts. Specifically, Gardner taught the minor victim how to “pose sexy” for photos and used those photos to advertise the minor victim online for commercial sex. Gardner also participated in commercial sex encounters with the minor victim and would instruct the minor victim what to do during the encounters. If the minor victim did not comply with Cunigan’s demands, he would beat the minor victim, and on occasion, he directed Gardner to use physical force against the minor victim as well. In an altercation in February 2022, Cunigan punched and kicked the minor victim, and Gardner hit the minor victim with a liquor bottle and a high-heeled shoe. Cunigan and Gardner knew the minor victim was a juvenile throughout the timeframe of the conspiracy.
In addition to the prison sentence, Gardner was also ordered to serve three years of supervised release and pay $9,750 in restitution to the victim. After her release from prison, Gardner will be required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
Gardner pleaded guilty on June 18 to conspiracy to commit sex trafficking of a minor. Cunigan pleaded guilty on June 25 to conspiracy to commit sex trafficking of a minor and sex trafficking by force, fraud, or coercion. He is scheduled to be sentenced on Sept. 24.
Principle Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement.
Homeland Security Investigations investigated the case.
Trial Attorney Melissa E. Bücher of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Maria M. Carboni for the Eastern District of Louisiana’s Financial Crimes Unit are prosecuting the case.
Justice Department Withdraws from 1995 Bank Merger GuidelinesRead the Press Release
The Justice Department announced today its withdrawal from the 1995 Bank Merger Guidelines and emphasized that the 2023 Merger Guidelines remain its sole and authoritative statement across all industries.
The department today also released commentary explaining the application of the 2023 Merger Guidelines in banking. This commentary identifies competition issues that may commonly occur in bank mergers and outlines which guidelines best inform analysis of those issues. As with the 2023 Merger Guidelines, this commentary offers transparency into the department’s merger review process but does not create rights or obligations of any party under the laws governing mergers of banks and bank holding companies.
The announcement today was the result of a collaborative consultative process with the department’s close partners at the Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency. The announcement was also informed by robust public feedback, department experience and expertise, as well as developments in the market, law and economics.
Neither the 2024 Banking Addendum nor the 2023 Merger Guidelines predetermine enforcement action by the department. Although the 2023 Merger Guidelines identify the factors and frameworks the department considers when investigating mergers, the department’s enforcement decisions will necessarily depend on the facts in any case and will continue to require prosecutorial discretion and judgment.
Throughout any bank merger review, the Justice Department works closely with the relevant bank regulators to ensure the complementary and consistent application of the laws within each agency’s area of expertise. As is always the case, those agencies may at their discretion use their own methods for screening and evaluating bank mergers.
Justice Department Awards over $600M to Hire Law Enforcement Officers, Keep Schools Safe, and Improve Law Enforcement Mental Health and Wellness ServicesRead the Press Release
The Justice Department’s Office of Community Oriented Policing Services (COPS Office) today announced that it has awarded over $600 million in grant funding to law enforcement agencies and stakeholders across the country. This funding will go to support a wide range of efforts, from hiring new law enforcement officers and keeping our schools safe, to expanding programs that support law enforcement mental health and wellness services and combating the distribution and trafficking of illicit drugs.
The funding was announced as part of the Justice Department’s celebration of the 30th anniversary of the COPS Office, commemorating 30 years since the passage of the Violent Crime Control and Law Enforcement Act. Since that time, the COPS Office has advanced community policing across the country by providing a variety of resources, including grant funding, training, technical assistance, and a wide range of publications and other resources.
“Since its founding 30 years ago, the COPS Office has shown the country what it looks like to put the values of community-oriented policing into action,” said Attorney General Merrick B. Garland. “This coming year, the Justice Department will provide funding for 235 police departments to hire nearly 1,200 additional officers. As we celebrate this milestone and announce this funding, we recommit ourselves to the COPS Office’s mission, and to the belief that everyone in this country deserves to feel safe, and to be safe, in their communities.”
“For 30 years, the COPS Office has been crucial to keeping our communities safe,” said Deputy Attorney General Lisa Monaco. “From helping communities build public safety capacity by putting more cops on the beat to helping law enforcement professionals build resilience — the COPS office has been a game changer for public safety.”
“Over the past three decades, the COPS Office has provided vital resources, training, and support to law enforcement agencies across the country to help them implement community policing strategies,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “That support is based on the foundational tenet that communities are safer when law enforcement and community members work in true partnership.”
“As the COPS Office celebrates its 30th anniversary of working with local, state, territorial, and Tribal law enforcement agencies, these grants are another example of the tremendous support we have been able to offer the law enforcement field over the years,” said Director Hugh T. Clements Jr. of the COPS Office. “These grants are one more way we work to ensure law enforcement and community members get the support they need as they continue to strive to keep their communities safe.”
The funding announced today includes:
- $157 million through the COPS Hiring Program (CHP) for 235 law enforcement agencies to hire nearly 1,200 additional officers to enhance their community policing capacity;
- $73 million for the School Violence Prevention Program/Bipartisan Safer Communities Act, for school safety measures in and around K-12 schools;
- $46 million to combat the distribution and trafficking of opioids and methamphetamine through the COPS Anti-Heroin Task Force (AHTF) program and the COPS Anti-Methamphetamine Program (CAMP);
- Over $31 million for the Tribal Resources Grant Program (TRGP), with an additional $500,000 in technical assistance;
- Over $9 million for the Law Enforcement Mental Health and Wellness Act (LEMHWA) program to improve the delivery of and access to mental health and wellness services for law enforcement and support staff;$750,000 for the Implementation of the De-Escalation Training Act;
- $10.5 million for the Preparing for Active Shooter Situations (PASS) Program, which provides training for first responders through scenario-based, multidisciplinary training classes;
- Almost $14 million in Community Policing Development Microgrants and Law Enforcement Products and Resources;
- Over $4 million for Promoting Access to Crisis Teams, which supports the implementation of crisis intervention teams, including embedding behavioral or mental health professionals with law enforcement agencies; and
- $6.5 million for law enforcement agency accreditation, for programs that allow police departments and sheriff’s agencies to obtain accreditation by independent credentialing bodies.
The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to more than 13,000 state, local, territorial, and Tribal law enforcement agencies to fund the hiring and redeployment of approximately 138,000 officers.
United States Reaches Agreement with COBB Tuning Products for Clean Air Act ViolationsRead the Press Release
The Justice Department and Environmental Protection Agency (EPA) today announced a settlement agreement with COBB Tuning Products to resolve claims relating to the manufacture and sale of automotive emission defeat devices in violation of the Clean Air Act. The settlement requires COBB to pay a civil penalty of just over $2.9 million, based on the company’s limited ability to pay, and to stop the manufacture and sale of defeat devices.
COBB is an automotive aftermarket parts manufacturer and retailer based in Austin, Texas, which formerly sold its parts in Plano, Texas; Portland, Oregon; and Fountain Valley, California. In the complaint filed with the settlement agreement, COBB is alleged to have manufactured and sold defeat devices prohibited under the Clean Air Act that, when installed, bypass or disable EPA-approved emission controls and harm air quality.
“COBB created software that allowed users to disable emissions controls, increasing pollution and violating the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We are committed to enforcing the Clean Air Act, which remains one of our most important tools in helping to secure and maintain a clean environment.”
“Defeat devices significantly increase air pollution from motor vehicles, particularly in communities that already are overburdened by pollution,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Use of illegal defeat devices has gone on for far too long. EPA will use all of its enforcement tools to hold polluters like COBB Tuning accountable until these illegal practices stop.”
COBB manufactured or sold over 90,000 of these aftermarket defeat devices since January 2015. COBB’s actions resulted in substantial excess emissions of nitrogen oxides, hydrocarbons and carbon monoxide. Today’s settlement requires the company to stop manufacturing and selling aftermarket defeat devices. COBB may continue to sell tuners and software tunes which the California Air Resources Board determined do not increase emissions above allowable levels. This enforcement action will prevent additional excess emissions that would have resulted from the continued sale of these illegal products.
In addition to requiring COBB to pay a civil penalty of more than $2.9 million, the settlement agreement requires the company to:
- Remove delete features from its software,
- Destroy violative products still in its inventory,
- Cease providing technical support or honoring warranty claims for previously sold violative products,
- Revise its marketing materials,
- Notify the customers that purchased the subject parts that the products at issue violate the Clean Air Act, and
- Conduct compliance training for its employees and contractors.
Defeat devices, which are often sold to enhance engine performance, work by disabling a vehicle's emission controls, causing air pollution. As a result of enforcement efforts, some of the largest manufacturers of defeat devices have agreed to pay penalties and stop the sale of defeat devices.
More information on this settlement is available on the COBB Tuning Performance Settlement Agreement web page.
The proposed consent decree, lodged in the U.S. District Court for the Western District of Texas, is subject to a 30-day comment period and final court approval. Information on submitting comment and access to the settlement agreement is available on the Justice Department’s website: www.justice.gov/enrd/consent-decrees.
The EPA investigated the case.
Attorneys with the Justice Department’s Environmental Enforcement Section are handling the case.
Two Puerto Rican Men Sentenced for Destroying Wetlands Including in the Jobos Bay National Estuarine Research ReserveRead the Press Release
On Friday, Sept. 13, two Puerto Rican men were sentenced for their destruction, removal and fill of protected wetlands in Puerto Rico in violation of the Clean Water Act.
U.S. District Court Judge Gina R. Mendez-Miro for the District of Puerto Rico sentenced Rafael Carballo-Diaz, 51, to 12 months in prison, one year of supervised release and a $4,000 fine. According to court documents, starting in July 2020, Carballo-Diaz destroyed, removed and filled mangrove wetland areas within and around the Jobos Bay National Estuarine Research Reserve (JBNERR) in Las Mareas, Puerto Rico. Despite lacking a permit, he filled the area with quarry material, gated the area, placed at least six mobile housing units on the property and added a pool. He then named the property “Cacique Resort” and rented the units online as short-term vacation properties.
Nathaniel Hernandez-Claudio, property manager at Carballo-Diaz’s Cacique Resort, was sentenced by Judge Mendez-Miro to 12 months of probation for his role in filling the property. Both Carballo-Diaz and Hernandez-Claudio were indicted in December 2023, and pleaded guilty in July.
Mangrove wetlands, such as those destroyed by the defendants, are critical to local infrastructure, economies and ecosystems because they can limit damage from flooding and storms, reduce pollution and provide habitat for numerous marine and endangered species. The JBNERR was designated as a reserve in 1981 to protect the wetlands and study the biological and societal impacts of estuarine habitat, as well as provide recreation and educational opportunities to local communities. The reserve is home to the endangered brown pelican, peregrine falcon, hawksbill turtle and West Indian manatee.
Congress enacted the Clean Water Act in 1972 to protect and maintain the integrity of the waters of the United States. It prohibits the discharge of any pollutant and fill material into waters of the United States except when a permit is obtained from the United States.
This case is part of an ongoing investigation into the destruction of wetlands in Puerto Rico. Previously charged individuals include Luis Enrique Rodriguez-Sanchez, sentenced in June; Awildo Jimenez-Mercado sentenced on Sept. 11; and Pedro Luis Bones-Torres, scheduled to be sentenced on Nov. 7.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico made the announcement.
The Environmental Protection Agency’s Criminal Investigation Division and the FBI investigated the case, with support from the Puerto Rico and U.S. Virgin Islands Environmental Crimes Task Force.
Senior Trial Attorney Patrick M. Duggan of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico are prosecuting the case.
Justice Department Expands Tribal Access Program to Improve the Exchange of Critical Data with Federally Recognized TribesRead the Press Release
The Justice Department has selected 17 federally recognized Tribes to participate in the continued expansion of the Tribal Access Program for National Crime Information (TAP), a program that provides Tribal governments with means to access, enter, and exchange data with national crime information systems, including those maintained by the FBI Criminal Justice Information Services (CJIS) Division. This announcement follows Attorney General Merrick B. Garland’s trips to Montana, New Mexico, and South Dakota during which he visited with numerous Tribal and federal law enforcement officials and Tribal leaders to discuss the public safety challenges faced by Tribal communities.
“Tribal communities deserve safety, and they deserve justice,” said Attorney General Garland. “The Tribal Access Program provides Tribes with the crime information they need to investigate crimes, apprehend suspects, protect vulnerable persons, and ensure justice for victims. It reflects the Justice Department’s steadfast commitment to working with our Tribal law enforcement partners to protect those living in Indian Country.”
With this expansion, TAP now supports 149 Tribes and more than 460 Tribal government agencies.
“The Tribal Access Program has enhanced our efforts in the administration of criminal justice within the Kickapoo Traditional Tribe of Texas reservation,” said Interim Tribal Police Director Epifanio Ruiz of the Kickapoo Traditional Tribe of Texas. “During the performance of our duties, the Tribal police department has effectively apprehended subjects within the Tribal nation who have outstanding warrants in other jurisdictions thus enhancing the safety and wellbeing of the community.”
TAP provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI CJIS systems.
The Justice Department began TAP in 2015 in response to concerns raised by Tribal leaders about the need to have direct access to federal systems. Using TAP, Tribes have shared information about missing persons; registered convicted sex offenders; entered domestic violence orders of protection for nationwide enforcement; entered orders that prevent dangerous prohibited persons from obtaining firearms; run criminal histories; identified and arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
The following additional Tribes have been selected for participation in TAP:
- Catawba Indian Nation
- Crow Tribe
- Little Traverse Bay Bands of Odawa Indians
- Native Village of Gakona
- Northern Cheyenne Tribe
- Orutsararmiut Traditional Native Council
- Quileute Tribe
- Snoqualmie Indian Tribe
- Village of Dot Lake
- Walker River Paiute Tribe
- Caddo Nation
- Tuolumne Band of Me-Wuk Indians
- Augustine Band of Cahuilla Indians
- Karuk Tribe
- Shawnee Tribe
- Yerington Paiute Tribe of the Yerington Colony & Campbell Ranch
- Kiowa Indian Tribe
TAP is managed by the Justice Department’s Office of the Chief Information Officer and the Office of Tribal Justice. It is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), the Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW).
For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.
United States Files Suit for Unpaid Duties and Penalties for Alleged Transshipment of Chinese Aluminum WireRead the Press Release
The United States has filed a civil lawsuit against Repwire LLC, a Florida Corporation that imports wire and cables. The lawsuit alleges that Repwire made false statements to customs officials in importing aluminum wire into the United States. The lawsuit also names as defendants Repwire’s manager, Jose Pigna, and insurer, American Alternative Insurance Corporation.
The United States’ complaint contends that Repwire, through gross negligence or negligence, misrepresented to U.S. Customs and Border Protection (CBP) the imported wire’s classification code and country of origin. Repwire allegedly falsely classified the imported wire from China as aluminum wire with connectors instead of wire without connectors, and after import duties on the former were subsequently raised, Repwire allegedly then falsely identified the country of origin for various entries of its merchandise as Singapore or Korea. Both of these alleged misrepresentations resulted in Repwire failing to pay the appropriate amount of duties owed on its merchandise.
“The Justice Department is committed to pursuing individuals and companies who evade customs duties or otherwise engage in unfair trade practices that harm U.S. manufacturers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to employ all of our tools to ensure that U.S. manufacturers are competing on a level playing field.”
“CBP takes its trade mission of protecting the U.S. economy very seriously as we strive to maintain fair trade and preserve American jobs from predatory practices,” said Executive Director Susan Thomas of Cargo and Conveyance Security, Office of Field Operations, CBP. “These civil penalties should serve as a warning to those who attempt to do harm to our economy and American businesses.”
The complaint alleges that Repwire, acting through Pigna, avoided various duties owed on the imported wire, including Section 301 duties, which are owed on certain Chinese merchandise, including aluminum wires without connectors, and anti-dumping and countervailing duties associated with Chinese aluminum wire. Antidumping and countervailing duties are trade remedies that help protect domestic industries from unfair trade practices by foreign businesses and countries, such as government subsidies or below market sales.
The complaint seeks the recovery of over $11 million in import duties and up to $62 million in civil penalties.
CBP’s Electronics Center of Excellence and Expertise and Homeland Security Investigations (HSI) Miami investigated the case. CBP and HSI are the agencies responsible for enforcing U.S. laws related to the importation of merchandise into the United States, including the collection of duties and assessment of penalties.
Trial Counsel Daniel Hoffman of the Civil Division’s Commercial Litigation Branch, National Courts Section, handled the case.
The case, which is filed in the Court of International Trade, is captioned United States v. Repwire LLC, and Jose Pigna, and American Alternative Insurance Corporation, No. 24-00173.
To combat trade fraud, including avoidance of import duties, the Justice Department created a Trade Fraud Task Force. The Task Force partners with CBP and other law enforcement agencies to ensure compliance with United States trade laws.
The claims in the complaint are allegations only, and there has been no determination of liability.
ComplaintJustice Department Commemorates 30th Anniversary of the Violence Against Women ActRead the Press Release
Today, the Justice Department hosted hundreds of survivors, advocates, victim services professionals, community leaders, government officials, and partners from the criminal and civil justice systems in the Great Hall of the Robert F. Kennedy Building to commemorate the 30th anniversary of the passage of the Violence Against Women Act (VAWA). The event, which featured remarks from Attorney General Merrick B. Garland, Deputy Attorney General Lisa Monaco, and Principal Deputy Associate Attorney General Benjamin Mizer and was broadcast live on the Department’s website, included a series of panel discussions focused on the impact of VAWA in addressing domestic violence, sexual assault, dating violence, and stalking in the last 30 years.
During the event, Attorney General Garland announced the designation of an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the VAWA Reauthorization Act of 2022. The Justice Department – through its U.S. Attorneys’ Offices and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions – will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms. The Justice Department anticipates additional jurisdictions to be designated as U.S. Attorneys’ Offices continue coordination with their local stakeholders. This effort will build on the $690 million in grant funding under VAWA programs that the Department announced earlier this week.
“Three decades ago, VAWA transformed our national response to domestic violence, sexual assault, dating violence, and stalking,” said Attorney General Garland. “Its enactment sent a message: gender-based and intimate-partner violence is not just a private matter, not just a local matter, but a national crisis — one that our country was no longer willing to tolerate. As we take stock of the progress that VAWA has advanced, the Department of Justice remains committed to using every tool at our disposal to end these forms of violence and support survivors.”
First enacted in 1994, VAWA was the first comprehensive federal law focused on preventing and addressing domestic violence, sexual assault, and stalking. When it was first passed, VAWA initially focused on providing resources and training to improve the responses and policies of law enforcement, prosecutors, and courts, as well as support victim services to address crimes historically treated as private matters. As Congress subsequently reauthorized VAWA, it enhanced its policies and expanded grant funding streams in 2000, 2005, 2013, and 2022. OVW has issued more than $11 billion in funding authorized by VAWA in its lifetime
As part of its observance of VAWA’s anniversary, the Department released this week a series of resources designed to bolster the coordinated community response to effectively responding to domestic violence, dating violence, sexual assault, and stalking. The resources include updated guidance to support health care providers and other professionals, including criminal justice practitioners and victim advocates, when responding to the immediate needs of sexual assault patients.
The Department’s Office on Violence Against Women (OVW) published the third edition of the National Protocol for Sexual Assault Medical Forensic Examinations (SAFE Protocol) for adults and adolescents. The protocol provides detailed guidelines for responding to the immediate needs of sexual assault patients. The protocol was authorized by VAWA’s 2000 reauthorization and first published in 2004. The protocol has the same emphasis and values as the previous versions, but it is updated to reflect current technology, science, and standards of practice. For this revision, OVW solicited input from experts in relevant disciplines, including physicians, forensic nurses, prosecutors, law enforcement, victim advocates, civil attorneys, forensic scientists, and experts in culturally specific and underserved populations.
“As a young staffer on the Senate Judiciary Committee thirty years ago, I was privileged to play a small part in the passage of the original Violence Against Women Act, which profoundly changed how our country protects survivors of domestic violence and sexual assault,” said Deputy Attorney General Lisa Monaco. “Today, with the largest funding level ever, VAWA’s programs are providing more access to services for survivors, more resources to help law enforcement respond, and more capacity to keep guns out of the hands of domestic abusers. On this milestone anniversary, the legacy of the Violence Against Women Act lives in the courage, stories, and voices of victims and survivors who made the original law possible. And it’s in the future work by all of us to shape a safer world for women everywhere.”
OVW also published a new report, Answering the Call: Thirty Years of the Violence Against Women Act, that chronicles the impact of VAWA grant funding. It uses research findings, numbers, archival material, and grantees’ and survivors’ own words to present snapshots of the ways VAWA transforms communities’ efforts to support survivors, hold offenders accountable, and work collaboratively to end domestic violence, sexual assault, dating violence, and stalking.
“Thanks to VAWA and its expansion over the last 30 years, we’ve pursued additional pathways to justice, acknowledging that access to justice looks different for each survivor,” said Principal Deputy Associate Attorney General Mizer. “I’m proud to say that this year OVW launched three new grant solicitations to implement the new restorative practices pilot program included in the 2022 VAWA reauthorization, including funding for pilot sites, national training and technical assistance, and a robust evaluation program. OVW will be awarding more than $29 million to support restorative practice programs that will expand access to justice for survivors.”
In addition to the OVW resources released today, the Department joined the Departments of Agriculture, Treasury, Veterans Affairs, and Housing and Urban Development to issue an interagency statement that affirms VAWA’s housing protections for survivors of domestic violence, sexual assault, dating violence, and stalking as well as other individuals, such as those who assist survivors.
“A coordinated community response is just as important at the federal level as it is within a community,” said OVW Director Rosie Hidalgo. “Too often, an individual facing violence feels forced to remain at home with their abuser because they don’t have anywhere else to go. By providing housing security, we can help support survivors and give them a pathway to safety. We’re grateful to our federal partners as we work together toward our common goal of ending gender-based violence and providing safety, security, and justice.”
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act 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 federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Film Producer Indicted for Multi-Decade Tax ConspiracyRead the Press Release
A film producer and an Australian accountant were indicted by a federal grand jury yesterday for crimes related to their roles in a multi-decade conspiracy to defraud the United States by concealing the movie producer’s income and assets offshore.
According to the indictment, Nigel Sinclair is a film producer who founded several successful movie production companies and Anthony Stewart is an accountant in Australia. In 2000, Sinclair allegedly co-owned Intermedia, a film production company he co-founded. He allegedly held half of his Intermedia shares in the name of a Maltese nominee entity that he controlled. When the company was listed on a foreign stock exchange, Sinclair allegedly caused his shares held by the Maltese company to be sold for approximately $25 million. He and Stewart then conspired with others to conceal these proceeds by depositing them into nominee bank accounts in Switzerland. Over the years, Sinclair allegedly used these proceeds to fly on private jets, purchase an $800,000 guitar owned by a famous rock musician, fund his next production company and build himself an 8,000 square foot vacation home in the Jackson Hole area of Wyoming. Stewart and others, among other things, allegedly used corporate entities and created fake documents to disguise the true ownership and source of the funds Sinclair used to do so.
In 2004, one of Sinclair’s co-conspirators was allegedly arrested in Australia and his laptop seized. The laptop allegedly contained files related to Sinclair and other individuals’ offshore financial dealings. According to the indictment, the seizure of the laptop was the impetus for a significant tax evasion investigation in Australia, code-named Project Wickenby. As the investigation progressed, and concerned about a possible IRS inquiry as well, Sinclair, Stewart and their co-conspirators allegedly took steps to avoid detection by authorities, including by moving Sinclair’s assets into the name of new nominees, destroying potentially incriminating documents by flushing them down the toilet, talking in code and communicating on burner phones.
In 2015, Sinclair allegedly tried to use the IRS’ Streamlined Domestic Offshore Procedures. Under those procedures, the IRS allegedly offered taxpayers with undisclosed foreign assets the opportunity to make timely, accurate and complete disclosures to resolve their non-compliance and limit their criminal exposure. Allegedly, a taxpayer who certified under penalties of perjury that their failure to comply was non-willful — usually defined as the result of negligence or mistake — could pay significantly reduced penalties. In his disclosure Sinclair allegedly made several false statements about his foreign assets and underreported their value. In addition, despite admitting in his 2015 voluntary disclosure that he had a foreign bank account, Sinclair allegedly did not report that bank account on Reports of Foreign Bank Account and Financial Accounts (FBARs) that he filed with the U.S. Treasury Department for 2016 or 2017.
Lastly, in 2020, Sinclair allegedly encouraged one of his co-conspirators to tell a false narrative to U.S. authorities as part of a grand jury investigation.
Sinclair allegedly caused a tax loss to the IRS of more than $5 million.
Sinclair and Stewart were charged with conspiracy to defraud the United States. Sinclair was also charged with filing false tax returns, filing false FBARs and obstruction of justice. If convicted, Sinclair and Stewart face a maximum penalty of five years in prison for conspiracy. Sinclair also faces a maximum penalty of three years in prison for each filing a false tax return charge, a maximum penalty of five years in prison for each false FBAR charge and a maximum penalty of 20 years in prison for the obstruction charge.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case. Assistance was provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, the Netherlands, United Kingdom and United States.
Trial Attorneys Peter J. Anthony and Erika V. Suhr and Assistant Chief Matthew Kluge of the Tax Division are prosecuting the case. Former Trial Attorney Christopher M. Magnani assisted in the investigation.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sinclair Indictment.pdfOhio Man Sentenced for Tax Fraud Conspiracy Related to Illegal Gambling BusinessesRead the Press Release
An Ohio man was sentenced to 24 months in prison today for conspiring to defraud the IRS by not reporting income he earned from his ownership and operation of illegal gambling businesses.
According to court documents and statements made in court, from 2010 through 2018, Jason Kachner, of Canton, along with Christos Karasarides Jr. and other co-conspirators, owned and operated two illegal gambling businesses, Skilled Shamrock and Redemption. From 2012 through 2017, patrons at Skilled Shamrock wagered a total of more than $34 million, which resulted in more than $4 million in income for the owners of the gambling business. Kachner conspired with his co-owners to defraud the IRS by using a nominee owner to conceal their ownership of the businesses and by filing false tax returns that omitted most of the income he received from the businesses.
Overall, Kachner caused a loss to the IRS of $844,692.
In addition to his prison sentence, U.S. District Judge Donald C. Nugent for the Northern District of Ohio ordered Kachner to serve three years of supervised release and pay $1,393,024 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation, the Stark County Prosecutor’s Office, the U.S. Department of Treasury Office of Inspector General, Homeland Security Investigations, the Ohio Casino Control Commission, and Ohio Organized Crime Investigations Commission-Major Crimes Task Force investigated the case.
Trial Attorneys Sam Bean and Hayter Whitman of the Justice Department’s Tax Division and Assistant U.S. Attorney David Toepfer for the Northern District of Ohio prosecuted the case.
Ohio Man Sentenced for Tax Evasion, Money Laundering and Operating an Illegal Gambling BusinessRead the Press Release
An Ohio man was sentenced to over seven years in prison today for tax, money laundering and gambling crimes arising out of his ownership and operation of illegal gambling businesses and related misconduct.
According to court documents and statements made in court, from 2009 through 2022, Steven Saris owned and operated multiple illegal gambling businesses in Northeast Ohio — including Café 62, Lucky’s, Winner’s World, Spin City and another business in Springfield, Ohio — as well as in Florida. Saris concealed his involvement in and income from these businesses by having others serve as nominee owners, and by destroying and directing others to destroy business records.
For tax year 2015, Saris filed a false tax return that did not report more than $1.4 million in income he received from his illegal gambling businesses. For tax years 2016 through 2021, Saris did not file tax returns or pay all the tax that he owed despite earning more than $9 million in income from his gambling businesses. During that time, Saris made only two nominal payments to the IRS in 2018 when he filed an application for an extension of time to file his 2017 return. Saris used his proceeds from the businesses to gamble millions at legal casinos and to acquire and renovate at least two residential properties located in Canton, Ohio.
Saris’s conduct caused a tax loss of $2,823,391.
In July 2018, law enforcement executed search warrants at multiple illegal gambling businesses and associated locations in Northeast Ohio. Following those search warrants, Saris made false statements to law enforcement. At the same time, Saris continued operating the illegal gambling businesses and did not disclose that to law enforcement. In August 2022, law enforcement executed a court authorized search warrant at Saris’ residence and for his cell phone. Upon learning of the search warrant for his cell phone, Saris told law enforcement that he did not know the location of his cell phone. Law enforcement recovered Saris’ cell phone from the water tank of a toilet in Saris’ residence.
In addition to his prison sentence, U.S. District Judge Donald C. Nugent for the Northern District of Ohio ordered Saris to serve three years of supervised release and pay $2,823,391 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation; the Stark County, Ohio, Prosecutor’s Office; the U.S. Department of Treasury Office of Inspector General; Homeland Security Investigations; the Ohio Casino Control Commission and the Ohio Organized Crime Investigations Commission, Major Crimes Task Force investigated the case.
Trial Attorneys Sam Bean and Hayter Whitman of the Justice Department’s Tax Division and Assistant U.S. Attorney David Toepfer for the Northern District of Ohio prosecuted the case.
Justice Department Secures Agreement with Parking Management Company to Resolve Claims of National Origin DiscriminationRead the Press Release
The Justice Department announced today that it secured a settlement agreement with SP Plus Corporation (SP Plus), a transportation and parking management company headquartered in Chicago. The agreement resolves the department’s determination that SP Plus discriminated against a worker by rejecting a valid document that showed her permission to work and requesting that she provide unnecessary documentation, based on her national origin.
“It is unlawful for employers to reject a valid document showing someone’s permission to work because of where the person was born,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department is committed to protecting workers from national origin discrimination in the hiring process and eliminating unnecessary barriers to employment.”
After conducting an investigation based on a complaint, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) concluded that SP Plus discriminated against a beneficiary of Temporary Protected Status (TPS) based on her national origin. TPS beneficiaries have permission to work in the United States. They can get Employment Authorization Documents that show employers their permission to work. Sometimes, the federal government extends these Employment Authorization Documents past the expiration date on the card. Instructions on how an employer can determine if an Employment Authorization Document has been extended by the federal government direct employers to look at the document’s category code and date of expiration. The department determined that instead of following the federal government’s instructions, SP Plus unlawfully rejected the worker’s valid, extended Employment Authorization Document because she was born in the Bahamas rather than Haiti, the country through which she has TPS. The Immigration and Nationality Act (INA) prohibits employers from considering an employee’s country of birth or other national origin indicator when verifying a person’s permission to work.
Under the terms of the settlement, SP Plus will pay a civil penalty to the United States, and offer reinstatement and pay backpay to the affected worker. The agreement also requires the company to train its personnel on the INA’s anti-discrimination requirements, revise its employment policies and be subject to departmental monitoring. SP Plus cooperated with the division’s investigation.
IER is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; or retaliation and intimidation.
IER’s website has information about employers’ obligations not to discriminate when hiring workers with TPS and employment rights for workers with TPS. Learn about TPS from U.S. Citizenship and Immigration Services’ website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected]; or visit IER’s English and Spanish websites. Sign up for email updates from IER.
Justice Department Announces More Than $690 Million in Violence Against Women Act FundingRead the Press Release
Today, the Justice Department announced the awards of over $690 million in grant funding administered by the Office on Violence Against Women (OVW). This funding will support services and justice responses for victims and survivors of domestic violence, dating violence, sexual assault, and stalking across all U.S. states and territories and in many Tribal nations.
The funding was announced as part of the Justice Department’s commemoration of the 30th anniversary of the passage of the Violence Against Women Act (VAWA), which was the first comprehensive federal law focused on preventing and addressing domestic violence, sexual assault, dating violence, and stalking.
“Thirty years ago, VAWA transformed our national response to domestic violence, sexual assault, dating violence, and stalking,” said Attorney General Merrick B. Garland. “Today, officers, prosecutors, judges, families, and society at large understand what should have always been clear: these crimes cannot be cast aside as somehow distinct or private. Instead, we recognize that they are among the most serious crimes that our society faces and that we must continue to improve access to justice, safety, and services for survivors.”
“I was privileged to work on the passage of the original Violence Against Women Act thirty years ago — landmark legislation that transformed how our nation responds to domestic violence and sexual assault,” said Deputy Attorney General Lisa Monaco. “Our country’s progress to prevent gender-based violence is not finished, but we have come a long way since 1994 thanks to the hard work of survivors, advocates, and members of law enforcement — including the women and men of the Justice Department — who work every day to hold perpetrators accountable and protect survivors. The grants we’re announcing today reaffirm our commitment to building safe communities for all, free from violence and fear.”
“Thanks to the changes in VAWA over the last 30 years, we've explored additional pathways to justice, acknowledging that justice looks different for each survivor,” Principal Deputy Associate Attorney General Benjamin C. Mizer said. “The right to live free from violence is fundamental, and our policies and resources must continue to evolve to protect this right fully. I commend OVW’s efforts to implement VAWA 2022’s expanded resources, including new funding to support and strengthen restorative practice programs addressing gender-based violence as well as to prevent and prosecute cybercrimes such as cyberstalking and the non-consensual distribution of intimate images.”
VAWA was first enacted in 1994 as part of the Violent Crime Control and Law Enforcement Act. It initially focused on providing resources and training to improve the responses and policies of law enforcement, prosecutors, and courts, to support victim services, and to address crimes historically treated as private matters. Recognizing that domestic violence, sexual assault, dating violence, and stalking require a coordinated community response that extends beyond the justice system, Congress subsequently reauthorized VAWA, enhancing its policies and expanding grant funding streams, in 2000, 2005, 2013, and 2022.
Each reauthorization of VAWA has broadened the law and expanded available resources, reflecting an evolving understanding of these crimes and underscoring the need for comprehensive, holistic approaches to improve victims’ access to justice, safety, and supportive services while also improving offender accountability. Over the years, VAWA has supported enhanced comprehensive services for survivors and increased equitable access to funding and legal protections across all communities, particularly those facing additional challenges to attaining the services and support they need.
“The power of VAWA is that it is centered on the lived realities and leadership of survivors. By identifying what works well that can be expanded and enhanced, and identifying gaps and barriers, we can continue to improve VAWA and ensure that we are supporting all survivors, including those from historically marginalized communities and underserved populations who often face multiple barriers to services and safety,” OVW Director Rosie Hidalgo said. “We remain committed to making progress toward ending domestic violence, sexual assault, dating violence, and stalking, and to ensuring that all survivors have multiple pathways to safety, services, healing, and justice.”
Created in 1995 to implement the provisions of VAWA and its subsequent reauthorizations, OVW provides national leadership on domestic violence, sexual assault, dating violence, and stalking. The office is comprised of dedicated advocates, experts, and survivors, many of whom have extensive experience in the field of domestic and sexual violence. OVW has distributed over $11 billion in funding authorized by VAWA since its enactment. Through its grant programs and partnerships, OVW helps strengthen local responses to domestic violence, sexual assault, dating violence, and stalking and provides funding annually to all 50 states, six territories, and many Tribal nations. By funding essential services for survivors, OVW ensures that communities are better equipped to address these critical issues. Today’s announcement includes funding for numerous grant programs, including new programs launched in FY 2024 as a result of the most recent reauthorization of VAWA in 2022 and appropriations acts.
Funding announced today includes:
- STOP (Services, Training, Officers, and Prosecutors) Violence Against Women Formula Grants Program: Grants totaling over $171 million will be distributed to all 50 states and six U.S. territories to support a coordinated community response among law enforcement, prosecution, courts, victim services organizations, and other community services to address domestic violence, sexual assault, dating violence, and stalking. The STOP program was one of VAWA’s first grant programs and was authorized in the original enactment in 1994.
- Sexual Assault Services Formula Program: Grants totaling over $52 million will be awarded in each state and territory to assist them in supporting rape crisis centers and nonprofit organizations, as well as Tribal programs that assist survivors of sexual assault.
- Transitional Housing Assistance Grants for Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking Program: Grants totaling over $40 million will support programs that provide six to 24 months of transitional housing support for survivors who are homeless or in need of transitional housing and other housing assistance as a result of domestic violence, sexual assault, dating violence, or stalking.
- Grants to Improve the Criminal Justice Response (ICJR) Program: Grants totaling over $24 million will assist communities in improving their criminal justice response while seeking safety and autonomy for survivors. ICJR grantees are encouraged to develop, implement, or enhance a coordinated community response to bring together effective partners from the local government, law enforcement agencies, prosecutors’ offices and courts, nonprofit organizations, and population-specific organizations to address these crimes. This year for the first time, OVW is also awarding more than $14 million through a related initiative, the Enhancing Investigation and Prosecution of Domestic Violence, Dating Violence, Sexual Assault, and Stalking Initiative, to support effective policing and prosecution strategies by promoting and evaluating effective trauma-informed policing and prosecution responses to domestic violence, sexual assault, dating violence, and stalking.
- State and Territory Domestic Violence and Sexual Assault Coalitions Program: Grants totaling over $19 million will support the critical work of state and territory domestic violence and sexual assault coalitions, which includes coordinating victim services and collaborating with federal, state, and local entities.
- Indian Tribal Governments Program: Grants totaling over $45 million will support the development and enhancement of effective strategies by Tribal governments to address domestic violence, sexual assault, dating violence, and stalking in Tribal communities consistent with Tribal law and custom. Additionally, $7.5 million is awarded under the newly established Grants to Indian Tribal Governments Program: Strengthening Tribal Advocacy Responses Track to support Tribes who have not previously accessed the Tribal Government funding and seek additional support for capacity building.
In addition, funding for new grant programs that were launched this year, made possible by VAWA’s 2022 reauthorization and expansion includes:
- Demonstration Program on Trauma-Informed, Victim-Centered Training for Law Enforcement (Abby Honold Program): Grants totaling $3 million will support the development and evaluation of enhanced, trauma-informed training for law enforcement to improve the response to victims. This new grant program, recently authorized through the 2022 VAWA Reauthorization, was championed by a former college student whose own experience as a survivor of sexual assault led her to want to improve the law enforcement response.
- National Resource Center on Cybercrimes Against Individuals: New funding totaling $2.8 million will support the establishment of a national resource center to provide information, training, and technical assistance to improve the capacity of individuals, organizations, governmental entities, and communities to prevent, enforce, and prosecute cybercrimes against individuals. This includes addressing technology-facilitated abuse, such as the non-consensual distribution of intimate images, and cyber-stalking, among others.
- Local Law Enforcement Grants for Enforcement of Cybercrimes Program: Grants totaling $5.5 million will be distributed through this new grant program to support communities in preventing, enforcing, and prosecuting cybercrimes against individuals and providing training for law enforcement, prosecutors, judges, victim services providers, and judicial personnel to address such crimes.
- Restorative Practices Pilot Sites Program: Grants totaling over $15 million will be provided through this new grant program authorized by the 2022 Reauthorization of VAWA to support, strengthen, and expand existing restorative practice programs that address domestic violence, sexual assault, dating violence, and stalking through a trauma-informed and survivor-centered approach. Additionally, OVW will award $8 million to fund research and evaluation of restorative practices in collaboration with the pilot sites. Earlier this year, OVW awarded grants to three entities to serve as national training and technical assistance providers and to work with the pilot sites.
- Healing and Response Teams: For the first time, OVW is providing more than $2 million through its Healing and Response Teams Special Initiative to support the development of practices using a Tribal-based model of care to respond to Missing or Murdered Indigenous Persons cases related to domestic violence, sexual assault, dating violence, stalking, and sex trafficking. This initiative is in response to recommendations made by the Not Invisible Act Commission.
View the LE for Enforcement of Cybercrimes Program Awards here.
View the ICJR Awards here.
View the NRCC Awards here.
View the Restorative Practices Pilot Program Evaluation Award here.
View the Restorative Practices Pilot Sites Program Awards here.
View the State Coalitions Awards here.
View the STOP Awards here.
View the TH Awards here.
View the Abby Honold Awards here.
View the EIP Awards here.
View the HRT Awards here.
View the SASP Awards here.
View the TG START Awards here.
View the Tribal Governments Awards here.
El Departamento de Justicia llega a un acuerdo con una compañía de gestión de aparcamiento que resuelve acusaciones de discriminación por motivos de nacionalidad de origenRead the Press Release
El Departamento de Justicia anuncio hoy que ha llegado a un acuerdo conciliatorio con SP Plus Corporation (SP Plus), una empresa de gestión de transporte y aparcamiento con sede en Chicago, Illinois. El acuerdo resuelve la determinación del departamento de que SP Plus discriminó a una trabajadora al rechazar un documento válido que mostraba su permiso para trabajar y al pedir que proporcionara documentación innecesaria, con base en su nacionalidad de origen.
«Es ilegal que un empleador rechace un documento válido que demuestre el permiso de alguien para trabajar en función del país en el que esa persona nació», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento se compromete a proteger a los trabajadores de la discriminación por motivos de nacionalidad de origen en el proceso de contratación y a eliminar barreras innecesarias para el empleo.»
Después de llevar a cabo una investigación basada en una queja, la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), de la División de Derechos Civiles, concluyó que SP Plus discriminó a una beneficiaria del Estatus de Protección Temporal (TPS) en función de su nacionalidad de origen. Los beneficiarios del TPS tienen permiso para trabajar en los Estados Unidos. Pueden obtener Documentos de Autorización para Trabajar que demuestren a los empleadores su permiso para trabajar. A veces, el gobierno federal prorroga estos Documentos de Autorización para Trabajar más allá de la fecha de vencimiento que figura en la tarjeta. Las instrucciones sobre cómo un empleador puede determinar si un Documento de Autorización para Trabajar ha sido prorrogado por el gobierno federal indican a los empleadores que consulten el código de categoría del documento y la fecha de vencimiento. El Departamento determinó que, en lugar de seguir las instrucciones del gobierno federal, SP Plus rechazó ilegalmente el Documento de Autorización para Trabajar válido y prorrogado de la trabajadora porque nació en las Bahamas en lugar de Haití, el país a través del cual tiene TPS. La ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) prohíbe que los empleadores consideren el país de nacimiento de un empleado u otro indicador de nacionalidad de origen a la hora de verificar el permiso de trabajo de una persona.
En virtud de los términos del acuerdo, SP Plus pagará sanciones civiles a los Estados Unidos, y le ofrecerá pagos retroactivos a la trabajadora afectada, así como su reincorporación. Por otra parte, el acuerdo también requiere que la compañía capacite a su personal en cuanto a los requisitos antidiscriminatorios de la INA, que revise sus políticas de empleo y que se someta a la supervisión por parte del Departamento. SP Plus cooperó con la investigación de la División.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
El sitio web de IER tiene información sobre las obligaciones de los empleadores de no discriminar al contratar a trabajadores con TPS y los derechos laborales de trabajadores con TPS. Obtenga más información sobre el TPS en el sitio web de los Servicios de Ciudadanía e Inmigración de los EE. UU.. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea gratuito o visualizar una presentación a la carta; enviar un correo electrónico a [email protected];; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
Early Bitcoin Investor Pleads Guilty to Filing Tax Return that Falsely Reported His Cryptocurrency GainsRead the Press Release
An Austin, Texas, man pleaded guilty today to filing a tax return that falsely underreported the capital gains he earned from selling $3.7 million in bitcoin.
According to court documents and statements made in court, between 2017 and 2019, Frank Richard Ahlgren III filed false tax returns that underreported or did not report the sale of $4 million worth of bitcoin in which he had substantial gains. All taxpayers are required to report any sale proceeds and gains or losses from the sale of cryptocurrency, such as bitcoin, on their IRS tax return.
Ahlgren was an early investor in bitcoins. In 2015, Ahlgren purchased approximately 1,366 bitcoins. That year, bitcoins were valued at no more than $500 each. In October 2017, Ahlgren sold approximately 640 bitcoins for approximately $5,807.53 per bitcoin for a total of $3.7 million. Ahlgren had purchased most of the bitcoins he sold in 2017 in 2015. He used the entirety of the proceeds from the sale of bitcoins to purchase a house in Park City, Utah. Ahlgren then filed a false tax return with the IRS for 2017 that substantially inflated the cost basis of the bitcoins, and therefore underreported his capital gain from his bitcoin sale.
In addition, in 2018 and 2019, Ahlgren sold more than $650,000 worth of bitcoins and did not report those sales on either years’ tax returns.
In total, Ahlgren caused a tax loss to the IRS of more than $550,000.
Ahlgren will be sentenced at a later date. He faces a maximum penalty of three years in prison as well as a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
IRS Criminal Investigation and the Texas Office of Attorney General are investigating the case.
Assistant Chief Michael C. Boteler and Trial Attorney Mary Frances Richardson of the Justice Department’s Tax Division and Assistant U.S. Attorney William R. Harris for the Western District of Texas are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Readout of the Justice Department’s Civil Rights Division’s Meeting with Muslim, Arab, Sikh, South Asian and Hindu Community StakeholdersRead the Press Release
The Justice Department yesterday convened its quarterly interagency meeting with Muslim, Arab, Sikh, South Asian and Hindu community stakeholders. Attorney General Merrick B. Garland provided remarks with those at the meeting, underscoring the department’s commitment to addressing hate crimes. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division outlined relevant enforcement efforts across the department and highlighted actions to prevent and combat discrimination and hate crimes. Assistant Secretary of Education Catherine Lhamon in the Department of Education’s Office for Civil Rights also addressed the attendees and highlighted efforts to ensure safe learning environments at schools, colleges and universities.
Justice Department leadership, including representatives from the Civil Rights Division, FBI, Community Relations Service and Office of Justice Programs, heard from participating organizations about campus safety and civil rights protections for demonstrators, efforts to protect voting rights and actions to address employment discrimination. Representatives from other federal government agencies were also in attendance, including Officer Shoba Sivaprasad Wadhia of the Department of Homeland Security’s Office of Civil Rights and Civil Liberties and others from the Departments of Labor and State, Equal Employment Opportunity Commission and U.S. Commission on Civil Rights.
Combating hate crimes, protecting religious freedom and addressing claims of discrimination are among the division’s top priorities. Yesterday’s meeting represents the department’s ongoing efforts to engage with organizations and stakeholders on issues affecting Muslim, Arab, Sikh, South Asian and Hindu communities.
The department has continued to prosecute hate crimes, including recent cases involving a Kentucky man who was charged with brandishing a gun and threatening a Palestinian American and Muslim man at a restaurant, a New Jersey man for sending threatening letters containing racist, anti-Muslim and antisemitic language and imagery to businesses, schools, synagogues and individuals for the purpose of instilling fear in the community and the leaders of the Terrorgram Collective, a transnational terrorist group for using digital platforms to solicit others to engage in hate crimes and terrorist attacks against immigrants and other groups based on hate-fueled bigotry and white supremacy.
In March, the department hosted community safety webinars for Muslim, Arab and Palestinian community stakeholders, during which the department released resource documents designed to help the public better understand federal civil rights laws, including laws that prohibit violence and discrimination on the basis of religion and national origin, and protections afforded by the Religious Land Use and Institutionalized Persons Act, a law that prohibits discriminatory land use decisions, and Title II of the Civil Rights Act of 1964 in public accommodations.
If you believe that you or someone else experienced religious or national origin discrimination, you can report a civil rights violation online at civilrights.justice.gov. If you believe you are a victim or a witness of a hate crime, you can report it to the FBI by calling 1-800-CALL-FBI or submitting a tip at tips.fbi.gov. Learn more about the department’s work on hate crimes here.
Assistant Attorney General Clarke speaks at the interagency meeting.Puerto Rico Man Sentenced for Destroying Wetlands Including in the Jobos Bay National Estuarine Research ReserveRead the Press Release
A Puerto Rico man was sentenced today to 14 months in prison, three years of supervised release and a $10,000 fine for the destruction and filling of wetlands in violation of the Clean Water Act.
According to court documents, between January 2020 and December 2023, Awildo Jimenez-Mercado, 41, removed mangroves from wetlands within and around the Jobos Bay National Estuarine Research Reserve (JBNERR) in Las Mareas, Puerto Rico. Despite lacking a permit, he filled the area with quarry material and built concrete structures atop. Jimenez-Mercado then built hospitality rental homes and an in-ground pool on the land, as well as a dock extending into the Caribbean Sea. He then named the property “Hidden Paradise” and rented the units online as short-term vacation properties for up to $495 per night. Jimenez-Mercado was indicted on Dec. 6, 2023, and pleaded guilty on May 3.
Mangrove wetlands, such as those destroyed by Jimenez-Mercado, are critical to local infrastructure, economies and ecosystems because they can limit damage from flooding and storms, reduce pollution and provide habitat for numerous marine and endangered species. The JBNERR was designated as a reserve in 1981 to protect the wetlands and study the biological and societal impacts of estuarine habitat, as well as provide recreation and educational opportunities to local communities. The reserve is home to the endangered brown pelican, peregrine falcon, hawksbill turtle and West Indian manatee.
Congress enacted the Clean Water Act in 1972 to protect and maintain the integrity of the waters of the United States. It prohibits the discharge of any pollutant and fill material into waters of the United States except when a permit is obtained from the United States.
This case is part of an ongoing investigation into the destruction of wetlands in Puerto Rico. Previously charged individuals include Luis Enrique Rodriguez-Sanchez, sentenced in June; Pedro Luis Bones-Torres, scheduled to be sentenced on Nov. 7; and Rafael Carballo-Diaz and Nathaniel Hernandez-Claudio, who are scheduled to be sentenced on Sept. 13.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico made the announcement.
The Environmental Protection Agency’s Criminal Investigation Division and the FBI investigated the case, with support from the Puerto Rico and U.S. Virgin Islands Environmental Crimes Task Force.
Senior Trial Attorney Patrick M. Duggan of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico are prosecuting the case.
Pakistani National with Ties to Iran Charged in Connection with Foiled Plot to Assassinate a Politician or U.S. Government OfficialRead the Press Release
Asif Merchant, also known as Asif Raza Merchant, was indicted yesterday with attempting to commit an act of terrorism transcending national boundaries and murder-for-hire as part of a scheme to assassinate a politician or U.S. government official on U.S. soil. Law enforcement foiled the plot before any attack could be carried out. Merchant was previously arrested and charged by complaint in July 2024. Merchant was ordered detained and is currently in federal custody.
“The Justice Department will not tolerate Iran’s efforts to target our country’s public officials and endanger our national security,” said Attorney General Merrick B. Garland. “As these terrorism and murder for hire charges against Asif Merchant demonstrate, we will continue to hold accountable those who would seek to carry out Iran’s lethal plotting against Americans.”
“This dangerous murder-for-hire plot was allegedly orchestrated by a Pakistani national with close ties to Iran and is straight out of the Iranian regime's playbook,” said FBI Director Christopher Wray. “A foreign-directed plot to kill a public official, or any U.S. citizen, is a serious threat to our national security and will be met with the full might and resources of the FBI. Protecting Americans from terrorists remains our highest priority.”
“As alleged, Merchant orchestrated a plot to assassinate U.S. politicians and government officials,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s indictment is a message to terrorists here and abroad that my Office and the Department of Justice will continue to take all steps necessary to protect the country against foreign threats.”
As set forth in court filings, in approximately April, after spending time in Iran, Merchant arrived in the United States from Pakistan and contacted a person he believed could assist him with the scheme to kill a politician or government official. That person reported Merchant’s conduct to law enforcement and became a confidential source (the CS).
In early June, Merchant met the CS in New York and explained his assassination plot. Merchant told the CS that the opportunity he had for the CS was not a one-time opportunity and would be ongoing. Merchant then made a “finger gun” motion with his hand, indicating that the opportunity was related to a killing. Merchant further stated that the intended victims would be “targeted here,” meaning in the United States. Merchant instructed the CS to arrange meetings with individuals whom Merchant could hire to carry out these actions. Merchant explained that his plot involved multiple criminal schemes: (1) stealing documents or USB drives from a target’s home; (2) planning a protest; and (3) killing a politician or government official.
At that meeting, Merchant began planning potential assassination scenarios and quizzed the CS on how he would kill a target in the various scenarios. Specifically, Merchant asked the CS to explain how the target would die in different scenarios. Merchant told the CS that there would be “security [] all around” the person.
Merchant stated that the assassination would occur after he left the United States, and he would communicate with the CS from overseas using code words. The CS asked whether Merchant had spoken to the unidentified “party” back home with whom Merchant was working. Merchant responded that he had and that the party back home told him to “finalize” the plan and leave the United States.
In mid-June, Merchant met with the purported hitmen, who were in fact undercover U.S. law enforcement officers (the UCs) in New York. Merchant advised the UCs that he was looking for three services from them: theft of documents, arranging protests at political rallies and for them to kill a “political person.” Merchant stated that the hitmen would receive instructions on who to kill either the last week of August or the first week of September, after Merchant had departed the United States.
Merchant then began arranging means to obtain $5,000 in cash to pay the UCs as an advance payment for the assassination, which he eventually received with assistance from an individual overseas. On June 21, Merchant met with the UCs in New York and paid them the $5,000 advance. After Merchant paid the $5,000 to the UCs, one of the UCs stated, “now we’re bonded,” to which Merchant responded “yes.” The UC then stated “Now we know we’re going forward. We’re doing this,” to which Merchant responded “Yes, absolutely.”
Merchant subsequently made flight arrangements and planned to leave the United States on Friday, July 12. On July 12, law enforcement agents placed Merchant under arrest before he could leave the country.
If convicted, Merchant faces a maximum penalty of life in prison.
The FBI Dallas, Houston, Tampa, Boston, Washington, Chicago, and Albany Field Offices investigated the case. The New York City Police Department, the U.S. Attorney’s Office for the Southern District of Texas and the U.S. Customs and Border Protection provided assistance.
Assistant U.S. Attorneys Sara K. Winik, Gilbert Rein and Douglas Pravda for the Eastern District of New York and Trial Attorneys David Smith and Joshua Champagne of the National Security Division’s Counterterrorism Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department, Federal Trade Commission and Japan Fair Trade Commission commemorate the 25th Anniversary of U.S.-Japan Competition Cooperation AgreementRead the Press Release
Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division, Commissioner Alvaro Bedoya of the Federal Trade Commission (FTC) and Commissioner Reiko Aoki of the Japan Fair Trade Commission (JFTC) met yesterday in Washington, D.C., to mark the 25th anniversary of the signing of an agreement between the United States and Japan concerning cooperation on anticompetitive issues.
“The Japan Fair Trade Commission is one of our closest and most important international partners,” said Assistant Attorney General Kanter. “We are grateful to the JFTC for our long history of sharing best practices, discussing common challenges and working together on competition issues affecting both of our countries. We look forward to continuing our close relationship with the JFTC in the future.”
“I want to thank Commissioner Aoki and the Japan Fair Trade Commission for being here today to commemorate this historic agreement,” said FTC Commissioner Bedoya. “The cooperation between the United States and Japan on competition issues extends back to 1976, long before this agreement was signed, making it the U.S. antitrust agencies’ longest-running bilateral consultation with any foreign competition agency. Our long and productive relationship reflects a mutual commitment to foster and enhance competition cooperation to the benefit of both countries, and the United States is grateful for this continuing relationship.”
“Challenges to competitive markets, domestically and globally, have evolved since the agreement was signed, the first such agreement for JFTC,” said JFTC Commissioner Aoki. “The evolution of technologies and markets is proof of our successful cooperation in maintaining well-functioning markets. I would like to thank Assistant Attorney General Kanter and Commissioner Bedoya for this opportunity to celebrate our success and confirm our commitment for the next quarter century and beyond.”
Under the 1999 competition cooperation agreement, the Justice Department, FTC and JFTC committed to notify each other of enforcement activities that may affect the other’s important interests and render assistance in enforcement activities where possible in order to contribute to the effective enforcement of the competition laws of each country.
Commission Aoki, Assistant Attorney General Kanter and Commissioner Bedoya attend the meeting.Florida Woman Pleads Guilty to Laundering Millions of Dollars as Part of Romance ScamsRead the Press Release
A Florida woman pleaded guilty today to conspiring to launder millions of dollars from American fraud victims to a co-conspirator abroad.
According to court documents, Cristine Petitfrere, 30, of Miramar, used bank accounts to receive proceeds from romance scams. After receiving money from victims of the scams, Petitfrere kept a portion as a fee and funneled the remainder to her co-conspirator overseas. Petitfrere laundered over $2.7 million and earned hundreds of thousands of dollars in fees.
Romance scams involve fraudsters creating fake online personas to gain the trust and affection of victims, ultimately leading to financial exploitation. These schemes not only cause significant financial losses, but also deeply impact the lives of victims, many of whom are elderly. Americans lost $1.14 billion to romance scams in 2023, according to Federal Trade Commission data.
“Romance scams cause not only significant losses but also profound emotional harm to countless individuals,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “This prosecution underscores the department’s efforts to dismantle the criminal networks that engage in these sophisticated financial schemes to exploit vulnerable Americans.”
Petitfrere is scheduled to be sentenced in the Southern District of Florida on Dec. 11. She faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Miami Field Office investigated the case.
Trial Attorneys Matthew Robinson and Lauren M. Elfner of the Civil Division's Consumer Protection Branch are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints can be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, at www.ovc.gov.
For more information about the Consumer Protection Branch and its fraud enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch.
North Carolina Auto Parts Seller and Its Owner to Pay $10M for Making, Selling and Installing Emissions Defeat Devices on Motor VehiclesRead the Press Release
North Carolina automotive parts manufacturer and seller, Rudy’s Performance Parts Inc. (Rudy’s), and its owner, Aaron Rudolf, have agreed to pay a total of $10 million in criminal fines and civil penalties for manufacturing, selling and installing devices, commonly known as “defeat devices,” used to remove or disable required emissions controls in motor vehicles.
Rudy’s pleaded guilty and was sentenced today in federal court in Washington, D.C., for conspiring to violate the Clean Air Act. U.S. District Court Judge Trevor N. McFadden for the District of Columbia ordered Rudy’s to pay a criminal fine of $2.4 million and to complete a three-year period of organizational probation, consistent with a plea agreement. Rudolf, sole owner and chief executive officer of Rudy’s, previously pleaded guilty for conspiring to violate the Clean Air Act by tampering with monitoring devices on approximately 300 diesel trucks, which involved the installation of defeat devices on those trucks. He was sentenced in April to three years of probation and ordered to pay a $600,000 criminal fine.
Separate from the criminal actions, the Justice Department, on behalf of the Environmental Protection Agency (EPA), filed a civil suit in 2022 against Rudy’s and Rudolf for violating the Clean Air Act by manufacturing, selling and installing defeat devices and failing to adequately respond to the EPA’s formal requests for information. Under a consent decree filed July 29, Rudy’s and Rudolf will pay a $7 million civil penalty for those violations. The consent decree would also prohibit them from making, selling, offering to sell and installing defeat devices, transferring intellectual property that would allow others to make or sell defeat devices and investing in or profiting from defeat devices manufactured or sold by other businesses. The decree is subject to court approval.
“Defeat devices, such as those sold by Rudy’s, can lead to pollution at high levels that pose health risks and harm the environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This plea agreement and civil settlement show that we will take strong action to enforce the Clean Air Act and emissions controls requirements for motor vehicles.”
“For too many years, companies like Rudy’s have installed illegal defeat devices to evade the public health protections of the Clean Air Act, to the detriment of communities across America,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Today’s announcement demonstrates that EPA will vigorously pursue criminal and civil penalties until this blatant illegal behavior comes to an end.”
“Those selling defeat devices are willing to pollute the environment so that they can personally profit,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Today’s sentencing makes clear that there will be significant consequences for those who traffic in these devices. Anyone considering peddling or installing these devices is on notice of the substantial costs of doing so.”
“The Clean Air Act’s protections are essential for the health and safety of our communities,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “Tampering with emissions controls adds excess pollutants to the air we breathe and harms both public health and the environment. Settlements like these are essential to hold entities who violate the Clean Air Act accountable and to prevent harmful air pollution.”
According to court documents in the criminal case, Rudy’s sold defeat devices, known as delete tuners, which tampered with the on-board diagnostic systems (OBDs) of vehicles. Rudy’s top selling product was the Mini Maxx delete tuner originally manufactured by another company, identified in court documents as “Company A.” Rudy’s also sold the XRT Pro, another Company A delete tuner. After Company A stopped making these tuners, Rudy’s conspired with others to manufacture imitation Company A tuners. Rudy’s reached an agreement with a software technician to convert certain tuners into imitation Company A tuners. That agreement ran from July 2015 through December 2016, when the software technician stopped converting tuners.
After that, Rudy’s manufactured the imitation delete tuners in-house using a laptop computer that Rudy’s purchased for $850,000. The laptop contained software to convert tuners into imitation Company A tuners. In-house manufacturing lasted from about December 2016 through July 2018. In total, Rudy’s sold approximately 43,900 imitation tuners, generating about $33 million in revenue.
The civil lawsuit alleges that from at least 2014 through mid-2019, Rudy’s and Rudolf manufactured and sold over 250,000 products designed to remove or disable EPA-mandated emissions controls. These products included hardware parts such as plates that block a vehicle’s exhaust gas recirculation system and pipes that replace pollution treatment components in a vehicle’s exhaust system.
Disabling or removing emissions controls and tampering with the OBD of a diesel truck causes its emissions — including nitrogen oxides, carbon monoxide, particulate matter and non-methane hydrocarbons — to increase significantly. Diesel exhaust is a mobile source air toxic because it poses cancer and noncancer health risks. In the civil complaint, the EPA estimates that the number of products sold by Rudy’s amounted to adding over 1 million vehicles’ worth of pollution to America’s roads.
The $7 million that Rudy’s and Rudolf will pay pursuant to the consent decree was based on their financial capability.
The EPA’s Criminal Investigation Division investigated the criminal case.
Senior Counsel Krishna S. Dighe and Trial Attorney Stephen J. Foster of the Environment and Natural Resources Division’s (ENRD) Environmental Crimes Section and Assistant U.S. Attorney Jennifer L. Blackwell for the District of Columbia are prosecuting the criminal case. Senior Counsel Elizabeth L. Loeb of ENRD’s Environmental Enforcement Section, Assistant U.S. Attorneys Cassie Crawford and Rebecca Mayer for the Middle District of North Carolina and Attorney-Adviser Lauren Tozzi of EPA’s Air Enforcement Division are handling the civil case.
The consent decree was lodged in the U.S. District Court for the Middle District of North Carolina. It is subject to a 30-day public comment period and approval by the Court. A copy of the consent decree and information on submitting comments is available on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.
Stopping the manufacture, sale, and installation of illegal delete devices is a priority for the EPA. You can learn more about the EPA’s criminal enforcement actions on defeat devices here and here.
Former Tuscaloosa-Area Credit Union Insider Pleads Guilty to ConspiracyRead the Press Release
BIRMINGHAM, Ala. – A former credit union employee pleaded guilty for her role in a wide-ranging account-takeover scheme, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
Appearing before U.S. District Judge Madeline Haikala, Brianna Mckala Johnson, 25, of Tuscaloosa, pleaded guilty to one count of conspiracy to commit wire fraud.
According to the plea agreement, Johnson was previously employed by Alabama Credit Union as a Member Care Agent. In this role, Johnson was able to access credit union member account information including, among other things, the names and personal identifying information of accountholders and their account balances. From August 2022 to January 2023, Johnson abused this access, misappropriating customer account information and then providing that account information to the administrator of a Telegram channel called “The Lucky Shop.”
The administrator of “The Lucky Shop” channel sold the information that Johnson provided, including bank logins and digital checks, to customers of his channel. The administrator also worked with others to withdraw funds from certain accounts. This part of the scheme, which the conspirators called “Operation ACU,” included depositing fraudulent checks, submitting fraudulent loan applications, and initiating fraudulent Automated Clearing House transfers. It also included using stolen passcodes to withdraw funds from Automated Teller Machines.
The maximum penalty for conspiracy to commit wire fraud is 5 years in prison and a $250,000 fine. Johnson has agreed to pay at least $406,809.96 in restitution to her former employer as part of her plea agreement.
The FBI investigated the case with assistance from Alabama Credit Union, the Tuscaloosa Police Department, and the Orange Beach Police Department. The U.S. Secret Service, the U.S. Postal Inspection Service, and the U.S. Postal Service Office of Inspector General have assisted in the broader investigation.
Assistant U.S. Attorney Edward J. Canter is prosecuting the case.