District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Convicted Felon Indicted for Possessing a FirearmRead the Press Release
A federal grand jury returned an indictment today charging a Mississippi man with being a felon in possession of a firearm.
The indictment charges that, on or about June 28, Marquez Dante Scott, 21, of Jackson, knowingly possessed a firearm after he was previously convicted of a crime punishable for a term exceeding one year.
If convicted, Scott faces a maximum penalty of 15 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Todd W. Gee for the Southern District of Mississippi made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, with assistance from the Capitol Police Department.
Trial Attorney Lakeita F. Rox-Love of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Matt Allen for the Southern District of Mississippi are prosecuting the case.
This case is brought as part of the Criminal Division’s Violent Crime Initiative to prosecute violent crimes in Jackson and the surrounding areas. The Criminal Division and the U.S. Attorney’s Office for the Southern District of Mississippi have partnered, along with local, state, and federal law enforcement agencies, to address violent crimes committed by gang members and associates through the enforcement of federal laws and use of federal resources to prosecute the violent offenders and prevent further violence.
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 Violent Crime Reduction Steering Committee MeetingRead the Press Release
The Justice Department’s Violent Crime Reduction Steering Committee met last week to discuss the efforts, challenges, and successes in reducing violent crime — as well as how the Department can further the steady, continued decline in violent crime in 2024. The Steering Committee is chaired by Principal Associate Deputy Attorney General (PADAG) Marshall Miller and composed of leadership and representatives from across the Department.
After PADAG Miller called the meeting to order, the Committee was briefed on the latest violent-crime statistics. Preliminary data from 88 cities showed that violent crime has continued to decline considerably in 2024, including a 16.9% decline in murder, a 7.5% decrease in rape, a 3.4% decrease in aggravated assault, and a 5.2% decline in robbery.
The Committee received updates from U.S. Attorney Andrew Luger for the District of Minnesota on the various initiatives employed by members of the U.S. Attorney community to crack down in violent crime during the summer months, when violent crime historically surges. These initiatives, employed by U.S. Attorneys’ Offices across the country, included such efforts as: increased outreach and intervention activities; weekly, data-driven coordination with local law enforcement to identify shooters and other drivers of violent crime for federal prosecution; surges in federal firearms prosecutions; increased focus on prosecution for possession or use of machinegun conversion devices, which convert semi-automatic firearms into fully automatic machineguns; launch and implementation of carjacking task forces; and partnerships with the Department’s Criminal Division to bring prosecutions under the Racketeer Influenced and Corrupt Organizations Act. Early data showed successful outcomes from initiatives that included, for example, further year-over-year reductions in homicides in Detroit and a zeroing out of carjackings in the Eastern District of Texas during the summer months of 2024.
The Committee was briefed by the Drug Enforcement Administration and the U.S. Marshals Service on their efforts and successes in combating violent crime over the summer through Operation Overdrive and Operation North Star, respectively, and from the Bureau of Alcohol, Tobacco, Firearms and Explosives regarding the Department’s convening with the additive manufacturing industry on how to reduce the availability and use of unlawful machinegun conversion devices, which was held Friday and included remarks from the Deputy Attorney General.
The Committee also heard from the Department’s grantmaking components regarding grants and additional resources to combat violent crime. The Office of Justice Programs discussed its use of grants, training, and technical assistance to assist state, local, and Tribal justice agencies in addressing their communities’ specific public safety needs. After previewing plans to observe the upcoming 30th anniversary of the Violence against Women Act, the Office of Violence Against Women briefed the Committee on its work at the intersection of firearms and domestic violence and on an important resource for prosecutors, the Framework for Prosecutors to Strengthen Our National Response to Sexual Assault & Domestic Violence Involving Adult Victims. The Department’s Community Oriented Policing Services discussed additional grants and resources available for combatting violent crime, including the award of grants to local law enforcement to hire career law enforcement officers.
At the conclusion of the meeting, Principal Associate Deputy Attorney General Miller discussed a new directive from the Deputy Attorney General on combating machinegun conversion devices. He also indicated that the Steering Committee’s work would be reported to Department leadership, including developments from the Department’s violent crime reduction initiatives and recommendations regarding additional policy and enforcement strategies.
Justice Department Issues New Guidance on Federal Law Regarding Voter RegistrationRead the Press Release
The Justice Department announced today that it has published a new guidance addressing limits on when and how jurisdictions may remove voters from their voter lists. The guidance document reflects the department’s commitment to ensuring that every eligible voter can exercise their right to vote free of discrimination or voter intimidation.
“Ensuring that every eligible voter is able to vote and have that vote counted is a critical aspect of sustaining a robust democracy, and it is a top priority for the Justice Department,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “As we approach Election Day, it is important that states adhere to all aspects of federal law that safeguard the rights of eligible voters to remain on the active voter lists and to vote free from discrimination and intimidation.”
In its guidance, the department reminds states that efforts to ensure accurate and current voting rolls must be accomplished in compliance with federal law and in a nondiscriminatory manner. Specifically, the department explains important limits imposed by federal law on the rules and procedures states may adopt regarding their voter registration lists. For example, list maintenance efforts must be uniform and nondiscriminatory, and a program to systematically remove ineligible voters must not be done within 90 days of a federal election. There also are specific rules about how to remove registered voters because they have moved. Importantly, these federal protections apply whether the process is initiated by the state or is responsive to third-party submissions.
The department also released a fact sheet as a resource for jurisdictions and provides information on certain civil provisions of federal law that protect the right to vote.
- Section 11(b) of the Voting Rights Act: Federal law broadly prohibits intimidation, threats and coercion — or attempts to do so — throughout every stage of the voting process, including registering to vote, casting a ballot and counting votes.
- Section 2 of the Voting Rights Act: Federal law also prohibits discrimination in voting because of race, color or membership in a minority language group, defined to include American Indian, Asian American, Alaskan Native and Spanish heritage citizens.
- Section 208 of the Voting Rights Act: For voters with disabilities and those unable to read or write, federal law guarantees voting assistance in all aspects of the voting process by a person of the voter’s choice subject to only two exceptions barring assistance by the voter’s employer or union. And, under the Americans with Disabilities Act, state and local governments must ensure people with disabilities have a full and equal opportunity to vote.
- Section 203 of the Voting Rights Act: The fact sheet explains that some jurisdictions, as determined by the Census Bureau, are required to provide all election information that is available in English in the covered minority language.
In April, the department announced an updated website, www.justice.gov/voting, a one-stop resource for information on voting and elections. This website includes guides on a range of topics to inform voters and state and local election officials. It includes, among other topics, information about Voting Protections for Language Minority Citizens under Section 203 of the Voting Rights Act, state-by-state rules regarding voting after a criminal conviction, the voting rights of members of the armed services and U.S. citizens living overseas, and information related to post-election audits, including the requirements under federal law that state and local election officials “retain and preserve” voting-related records.
More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931.
The www.justice.gov/voting website also provides information on the Justice Department’s Election Threats Task Force, which leads the department’s efforts to address violence against election workers and to ensure that all election workers — whether elected, appointed or volunteer — are able to do their jobs free from threats and intimidation.
You can report suspected criminal activity regarding voting to the FBI at 1-800-CALL-FBI (1-800-225-5324) or by filing an online complaint at tips.fbi.gov. You can also contact local law enforcement. If at any time you are in imminent danger, call 911.
Justice Department Begins Second Distribution of Forfeited Funds to Compensate Victims of Fraud Scheme Facilitated by Western UnionRead the Press Release
The Justice Department announced today that the Western Union Remission Fund began its second distribution of approximately $18.5 million in funds forfeited to the United States from the Western Union Company (Western Union) to approximately 3,000 victims located in the United States and abroad. These victims stand to recover the full amount of their losses.
This is the second distribution of the second phase of the Western Union Remission. The first distribution of the second phase paid approximately $40 million to over 25,000 victims. Through two phases, the Western Union Remission Fund has distributed over $420 million to more than 175,000 victims who received full compensation for their losses.
The second phase of the Western Union Remission was opened in March 2022 to provide victims who had not filed petitions in the first phase of distributions an opportunity to file for remission. The Justice Department continues to review petitions for remission and reconsideration request forms from those victimized by the scheme. The Justice Department anticipates authorizing more distributions for victims in the coming months.
“Western Union aided and abetted fraud schemes that collectively caused thousands of victims to lose hundreds of millions of dollars,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The Justice Department has now returned more than $420 million forfeited from Western Union to more than 175,000 victims, who have received full compensation for their losses. The sixth distribution from the Western Union Remission Fund demonstrates yet again that the Criminal Division is committed to using all of its authorities to make crime victims whole.”
“The latest distribution of $18.5 million to approximately 3,000 victims again highlights the commitment of our prosecutors and law enforcement partners,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “Western Union allowed fraudsters to carry out schemes against the most vulnerable people in our society, and we are proud to uphold accountability for those involved in these schemes and ensure proper compensation for the harm that victims suffered.”
“This $18.5 million disbursement to approximately 3,000 victims represents the U.S. Postal Inspection Service’s commitment to the American people and the many victims of financial fraud,” said U.S. Postal Inspector in Charge Christopher Nielsen of the U.S. Postal Inspection Service’s (USPIS) Philadelphia Division. “The Western Union Remission process has now disbursed over $420 million to approximately 175,000 victims. This accomplishment reflects our continued efforts with the U.S. Department of Justice’s Money Laundering and Asset Recovery Section to provide financial reimbursement to those victimized by a large scale and sophisticated mass marketing fraud.”
In 2017, Western Union entered into a deferred prosecution agreement (DPA) with the United States. Pursuant to the DPA, Western Union acknowledged responsibility for its criminal conduct, which included violations of the Bank Secrecy Act and aiding and abetting wire fraud, and agreed to forfeit $586 million, which has been made available to compensate victims of the international consumer fraud scheme through the remission process. Western Union simultaneously resolved a parallel civil investigation with the Federal Trade Commission.
In this scheme, fraudsters targeted consumers, including seniors, through multiple scams. Three specific scams directed towards seniors include the grandparent scam, where the fraudster would pose as the victim’s relative in need of immediate money to avoid personal harm, lottery, or sweepstakes scams; where the fraudster would tell the victim that they had won a large cash prize but had to pay fees such as taxes to claim the prize; and romance scams, where the fraudster would pose as an online love interest and request funds for a visit or for another purpose. In each of these scams, the fraudsters convinced their victims to send money through Western Union.
Certain owners, operators, or employees of Western Union agent locations were complicit in the schemes. Western Union aided and abetted the fraud scheme by failing to suspend or terminate complicit agents and by allowing them to continue to process fraud-induced monetary transactions. Western Union fulfilled its obligations under the DPA and the court granted the motion to dismiss the information.
The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime and acknowledges the significant assistance of the USPIS Philadelphia Division’s Harrisburg, Pennsylvania, Office in the Western Union remission. The victim compensation payments in the Western Union case would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section and the U.S. Attorneys’ Offices for the Middle District of Pennsylvania, Central District of California, Eastern District of Pennsylvania, and Southern District of Florida. The FBI Los Angeles Field Office, IRS Criminal Investigation, Homeland Security Investigations Philadelphia, Federal Reserve Board and Consumer Financial Protection Bureau Office of Inspector General, and Department of the Treasury Office of Inspector General provided valuable assistance.
More information about the Western Union Remission Fund and its compensation to victims is available at www.WesternUnionRemissionPhase2.com. Further questions may be directed to the Western Union Remission Administrator by phone at (855) 786-1048 or by email at [email protected].
El Departamento de Justicia emite un nuevo documento de orientación sobre las leyes federales de inscripción electoralRead the Press Release
El Departamento de Justicia anunció ayer que ha emitido un documento de orientación sobre los límites en cuanto a cuándo y cómo las jurisdicciones pueden remover a votantes de sus listas de votantes. El documento de orientación es reflejo del compromiso del departamento a asegurar que cada votante elegible pueda ejercer su derecho al voto libre de discriminación o intimidación.
“Un aspecto fundamental del mantenimiento de una democracia robusta, y una prioridad de primer orden del Departamento de Justicia, es asegurar que cada votante elegible pueda votar y que su voto sea contado,” afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Según se acerca el Día de las Elecciones, es importante que los estados cumplan con todos los aspectos de las leyes federales que salvaguardan el derecho de los votantes elegibles a permanecer en las listas de votantes activos y que voten libres de discriminación o intimidación.”
En el documento de orientación, el departamento les recuerda a los estados que los esfuerzos para mantener las listas de votantes precisas y actualizadas deben realizarse en cumplimiento con las leyes federales y no de manera discriminatoria. En concreto, el departamento explica los importantes límites impuestos por ley federal a los procedimientos y reglas que los estados puedan adoptar en cuanto a sus listas de votantes inscritos. Por ejemplo, los esfuerzos de mantenimiento de listas deben ser uniformes y no discriminatorios, y un programa que sistemáticamente remueve a los votantes inelegibles no debe llevarse a cabo durante los 90 días antes de unas elecciones federales. También hay reglas específicas sobre cómo remover a votantes inscritos que se han mudado. Es importante señalar que estas protecciones federales se aplican tanto si el proceso es iniciado por el estado como en respuesta a solicitudes de terceras partes.
El departamento también ha emitido una hoja informativa para las jurisdicciones que proporcione información sobre ciertas leyes federales civiles que protegen el derecho al voto.
- Sección 11(b) de la Ley de Derechos Electorales: La ley federal ampliamente prohíbe la intimidación, amenazas y la coerción – o los intentos de lo mismo – a través de cada etapa del proceso electoral, incluyendo la inscripción para votar, la emisión del voto y la tabulación de los votos.
- Sección 2 de la Ley de Derechos Electorales: La ley federal también prohíbe la discriminación en la votación por motivos de raza, color o pertenencia a un grupo de minoría lingüística, lo cual, según la definición en la ley, se extiende a ciudadanos amerindios, de ascendencia asiática, nativos de Alaska o de herencia hispana.
- Sección 208 de la Ley de Derechos Electorales: Para votantes con discapacidades y aquellos que tienen dificultades para leer o escribir, la ley federal les garantiza asistencia en todos los aspectos del proceso electoral por parte de una persona que ellos mismos elijan, sujeto a solamente a dos excepciones que prohíben que el empleador del votante o un representante de su sindicato laboral le ayuden. Y, en virtud de la Ley de Estadounidenses con Discapacidades, los gobiernos estatales y locales deben asegurar que las personas con discapacidades tengan una oportunidad plena e igualitaria de votar.
- Sección 203 de la Ley de Derechos Electorales: La hoja informativa explica que algunas jurisdicciones, según identificadas por la Oficina del Censo, tienen la obligación de proporcionar toda la información electoral disponible en inglés en el idioma minoritario lingüístico cubierto.
En abril el departamento anunció un sitio web actualizado, www.justice.gov/voting, un punto único de recursos con información sobre la votación y las elecciones. Este sitio web incluye guías sobre una variedad de temas para informar a los votantes y a los funcionarios electorales estatales y locales. Incluye, entre otros temas, información sobre las protecciones electorales para los ciudadanos de grupos lingüísticos minoritarios en virtud de la sección 203 de la ley de Derechos Electorales, reglas (por estado) sobre el derecho al voto tras una condena penal, el derecho al voto de los miembros de las Fuerzas Armadas y de ciudadanos de los EE. UU. que residen en el extranjero e información sobre las auditorías después de las elecciones, incluyendo los requisitos en virtud de la ley federal de que los funcionarios electorales estatales y locales «mantengan y conserven» registros relacionados con las elecciones.
Información adicional sobre la votación y las elecciones está disponible en el sitio web del Departamento de Justicia en www.justice.gov/crt/voting/. Aprenda más sobre la ley de Derechos Electorales y otras leyes federales electorales en www.justice.gov/crt/voting-section. Querellas relacionadas con posibles vulneraciones de las leyes federales de derechos electorales pueden presentarse mediate el formulario en línea de la División de Derechos Civiles en https://civilrights.justice.gov/ (disponible en español) o por teléfono al 1-800-253-3931.
El sitio web www.justice.gov/crt/voting/ también brinda información sobre el grupo de trabajo conjunto para combatir a las amenazas en las elecciones, el cual encabeza los esfuerzos del departamento para enfrentar a la violencia contra funcionarios electorales y asegurar que todos los trabajadores electorales – ya sean electos, nombrados o voluntarios – puedan hacer su trabajo libres de amenazas e intimidación
Usted puede denunciar sospechas de actividad delictiva relacionada con las elecciones al FBI al 1-800-CALL-FBI (1-800-225-5324) o presentar una querella en línea en tips.fbi.gov (solo en inglés) o Contactar – FBI. Puede también ponerse en contacto con las agencias del orden público locales. Si usted está en peligro inminente, llame al 911.
Pharmacists Convicted of $13M Medicare, Medicaid, and Private Insurer Fraud SchemeRead the Press Release
A federal jury convicted four pharmacy owners yesterday for conspiracy to commit health care fraud and wire fraud.
According to court documents and evidence presented at trial, Raef Hamaed, of Maricopa County, Arizona; Kindy Ghussin, of Greene County, Ohio; Ali Abdelrazzaq, of Macomb County, Michigan; and Tarek Fakhuri, of Windsor, Ontario, Canada, all licensed pharmacists, billed Medicare, Medicaid, and Blue Cross Blue Shield of Michigan for prescription medications that they did not dispense at pharmacies they owned in Michigan and Ohio. The defendants collectively caused over $13 million of loss to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan.
Hamaed, Ghussin, Abdelrazzaq, and Fakhuri were convicted of conspiracy to commit health care and wire fraud. Abdelrazzaq was also convicted of two counts of health care fraud and Fakhuri was convicted of one count of health care fraud. Sentencing hearings will be set at a later date.
Hamaed, Ghussin, Abdelrazzaq, and Fakhuri face a maximum penalty of 20 years in prison on the conspiracy count, and Abdelrazzaq and Fakhuri face a maximum penalty of 10 years in prison on each health care fraud count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office; and Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI Detroit Field Office and HHS-OIG investigated the case.
Trial Attorneys Claire Sobczak, Kelly M. Warner, and S. Babu Kaza 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.
Leader of Sophisticated Stolen Identity Tax Refund Scheme SentencedRead the Press Release
Abraham Yusuff, of Round Rock, Texas — the leader of a scheme to defraud the IRS of over $110 million — was sentenced today to more than 14 years in prison. Meghan Inyang, of San Antonio, and Christopher Eduardo, of Round Rock, two of Yusuff’s co-defendants, were also sentenced today to over three years and over two years in prison, respectively. In total, seven individuals have now been sentenced to prison for their involvement in the scheme.
“Yusuff and his codefendants secured $30 million in fraudulent refunds from the IRS — and sought even more,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “They stole the identities of honest taxpayers, filed hundreds of returns in those taxpayers’ names seeking bogus refunds and assumed the identities of real-life CPAs and other professionals to trick the IRS into directing the refunds into accounts and debit cards they controlled. The significant sentences handed down by the court reflect not only the injury caused to the Treasury, but also the financial harm and stress the defendants imposed on the innocent taxpayers and accounting professionals swept up in their scheme.”
“Yusuff and co-defendants didn’t just steal money, they stole the lives of hundreds of victims by changing all their contact information with the IRS and posing as authorized representatives for the taxpayers,” said Acting Special Agent in Charge Lucy Tan of IRS Criminal Investigation (IRS-CI) Houston Field Office. “This insidious and complex scheme victimized both the real tax professionals and the people they represent, which is why IRS-CI special agents help take down criminal enterprises and put criminals behind bars.”
“Stealing someone’s identity is abhorrent and despicable behavior. This week’s sentencing serves as a stark reminder that fraud and the pursuit of quick gains comes with severe consequences,” said Special Agent in Charge Christopher J. Altemus Jr. of IRS-CI Dallas Field Office. “I’m proud of the women and men of IRS-CI for their commitment to protect our tax system and their resolve to ensure that those who engage in fraudulent activities face the full extent of the law.”
According to court documents and statements made in court, from 2018 to 2021, Yusuff led a stolen-identity-refund-fraud scheme with Eduardo and Inyang, as well as Christian Mathurin, of Nashville, Tennessee; Dillon Anozie, of San Antonio; Babajide Ogunbanjo, of Austin, Texas; and Aydin Mammadov, of Houston.
As part of the scheme, and to avoid fraud detection procedures the IRS established, Yusuff recruited and directed Eduardo, Mathurin, Anozie, Ogunbanjo and Mammadov to provide addresses to him for the purpose of receiving mail, including IRS correspondence such as identity verification letters. Yusuff and others then contacted the IRS posing as authorized agents of multiple taxpayers. They used stolen information relating to the taxpayers and their real tax preparers to falsely persuade the IRS they were legitimate representatives. The defendants then directed the IRS to change the addresses on file for the taxpayers and to send their tax information, including account transcripts and wage records, to the addresses and emails the defendants controlled. Communicating over Telegram, Yusuff instructed his defendants to send him photographs of the mail the IRS had sent and then instructed them to destroy the mail.
The defendants used this information to electronically file more than 370 tax returns claiming fraudulent refunds and directed the IRS to split the refunds among several prepaid debit cards registered in the names of the victim taxpayers. Prior to issuing tax refunds to some taxpayers, the IRS sent verification letters to the addresses the defendants controlled, and the defendants and others, pretending to be the taxpayers, instructed the IRS to release the refunds.
Yusuff, Inyang, Eduardo, Anozie, Ogunbanjo and Mammadov obtained the prepaid debit cards that were to be used to receive the fraudulently claimed refunds. Once the refunds were deposited onto the prepaid debit cards, they further concealed the funds by purchasing, among other things, money orders from local stores in amounts that were designed to avoid having to furnish identification or trigger reporting requirements. They also used prepaid debit cards and money orders to purchase designer clothing, home renovation materials and used cars at auction. The defendants kept or received money orders purchased with the fraudulent refunds as their share of the illegal proceeds.
At sentencing, the government offered victim impact statements from several individuals whose identities were stolen, including victim taxpayers and accountants. The victims spoke of the financial harm and stress that Yusuff and his co-defendants caused them.
In addition to the terms of imprisonment, U.S. District Court Judge Robert Pittman for the Western District of Texas sentenced Yusuff to three years of supervised release and ordered him to pay restitution and a forfeiture judgment in the amount of $30,370,365. Eduardo was sentenced to three years of supervised release and ordered to pay $2,823,377 in restitution to the IRS. Inyang was sentenced to three years of supervised release and ordered to pay $762,512 in restitution to the IRS.
Judge Pittman previously sentenced the other co-defendants to prison:
- Dillon Anozie (30 months)
- Aydin Mammadov (18 months)
- Babajide Ogunbanjo (16 months) and
- Christian Mathurin (12 months).
IRS-CI and the Treasury Inspector General for Tax Administration investigated the case.
Assistant Chief Michael Boteler and Trial Attorneys Mary Frances Richardson and Curtis Weidler of the Justice Department’s Tax Division prosecuted the case. The U.S. Attorney’s Office for the Western District of Texas assisted in this matter.
Robert Hunter Biden Convicted on Three Felony Tax Offenses and Six Misdemeanor Tax OffensesRead the Press Release
Robert Hunter Biden (Hunter Biden) pleaded guilty in federal court in Los Angeles this afternoon to all counts in a nine-count indictment, including three felony tax offenses and six misdemeanor tax offenses. There was no plea agreement.
Judge Scarsi accepted the defendant’s guilty plea and scheduled sentencing for December 16, 2024.
According to the indictment, Hunter Biden engaged in a four-year scheme in which he chose not to pay at least $1.4 million in self-assessed federal taxes he owed for tax years 2016 through 2019 and to evade the assessment of taxes for tax year 2018 when he filed false returns. As alleged in the indictment, to further this scheme, Hunter Biden:
- subverted the payroll and tax withholding process of his own company by withdrawing millions outside of the payroll and tax withholding process;
- spent millions of dollars on an extravagant lifestyle rather than paying his tax bills;
- in 2018, stopped paying his outstanding and overdue taxes for tax year 2015;
- willfully failed to pay his 2016, 2017, 2018 and 2019 taxes on time, despite having access to funds to pay some or all of these taxes;
- willfully failed to file his 2017 and 2018 tax returns, on time; and
- when he did finally file his 2018 returns, included false business deductions in order to reduce the very substantial tax liability he faced as of February 2020.
At sentencing, Hunter Biden faces a maximum penalty of 17 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Court documents and information for this case is located on the website of the District Court for the Central District of California or on PACER by searching for Case No. 2:23-cr-00599.
Pennsylvania Business Owner Sentenced for Tax EvasionRead the Press Release
A Pennsylvania man was sentenced today to 24 months in prison for evading his personal and employment taxes.
According to court documents and evidence presented at trial, Brandon Aumiller, of Milroy, owned an insurance sales business. For tax years 2007 and 2009 through 2011, Aumiller filed personal income tax returns reporting that he owed taxes, but did not pay them. He also filed employment tax returns for his business reporting that it owed taxes for the third quarter of 2013 and the first two quarters of 2014, but did not pay those taxes either.
When the IRS sought to collect the taxes Aumiller admitted he owed, Aumiller engaged in a multi-year scheme to thwart the IRS’ efforts by concealing his assets in nominee bank accounts, structuring multiple real estate deals to conceal the transactions from the IRS and submitting false financial disclosure forms to the IRS that did not fully disclose his bank accounts and his real estate assets.
In total, Aumiller caused a tax loss to the IRS of $478,270.
In addition to the term of imprisonment, U.S. District Judge Christopher C. Conner ordered Aumiller to serve three years of supervised release and to pay approximately $180,000 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 Gerard M. Karam for the Middle District of Pennsylvania made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Matthew L. Cofer of the Tax Division and Assistant U.S. Attorney Geoffrey W. MacArthur for the Middle District of Pennsylvania prosecuted the case.
North Platte Man Sentenced to 10 Years for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Susan Lehr announced that Luke H. Schwartz, age 44, of North Platte, was sentenced on September 5, 2024, in federal court in Lincoln, Nebraska for one count of conspiracy to distribute 50 grams or more of actual methamphetamine. United States District Judge Susan M. Bazis sentenced Schwartz to a total of 120 months’ imprisonment. There is no parole in the federal system. After Schwartz’s release from prison, he will begin a 5-year term of supervised release.
Between July 2022 and February 2023, Schwartz and others conspired to sell meth around North Platte. The group was responsible for the distribution of pounds of meth. During January 2023, Schwartz and other co-defendants were responsible for the sales of a minimum of 106 grams of meth actual to a confidential informant (CI) working with law enforcement.
Schwartz was directly involved in two sales in January 2023, which involved at least 70 grams of actual meth. During the first sale, the CI set up the controlled buy with Schwartz. Law enforcement provided the CI with $600 to purchase an ounce of meth. The CI went to the pre-arranged buy location and provided Schwartz the money in exchange for a baggie containing a white crystalline substance. The State Crime Lab confirmed the substance to be at least 22 grams of actual meth.
The same CI set up a second buy from Schwartz. Law enforcement provided the CI with $1,200 to purchase two ounces of meth. The CI met up with Schwartz at a pre-determined location for buy to occur. The CI gave Schwartz the money and Schwartz gave the CI a baggie containing a white crystalline substance. The State Crime Lab confirmed the substance to be at least 48 grams of meth actual.
This case was investigated by the Tri-City Drug Enforcement Team (TRIDENT). TRIDENT is a task force with law enforcement personnel from the Adams County Sheriff’s Office, Buffalo County Sheriff’s Office, Federal Bureau of Investigation, Grand Island Police Department, Hall County Sheriff’s Office, Hastings Police Department, Homeland Security Investigations, Kearney Police Department, and the Nebraska State Patrol.
Nigerian Brothers Sentenced in Sextortion Scheme that Resulted in Death of TeenRead the Press Release
The Justice Department today announced that Samuel Ogoshi, 24, and Samson Ogoshi, 21, both of Lagos, Nigeria, were each sentenced to 210 months in prison and five years of supervised release for conspiracy to sexually exploit minors. On March 25, 2022, 17-year-old high school student, Jordan DeMay, of Marquette, Michigan, died as a result of this sextortion scheme, which targeted over 100 other victims.
“These defendants sexually exploited and extorted more than 100 victims, including at least eleven minors, resulting in the tragic death of a 17- year-old high school student,” said Attorney General Merrick B. Garland. “These sentences should serve as a warning that the perpetrators of online sexual exploitation and extortion cannot escape accountability for their heinous crimes by hiding behind their phones and computers. The Justice Department will find them, no matter where they are, and we will bring them to justice in the United States.”
“Today’s sentencing of Samuel and Samson Ogoshi sends a thundering message,” said U.S. Attorney Mark Totten for the Western District of Michigan. “To criminals who commit these schemes: you are not immune from justice. We will track you down and hold you accountable, even if we have to go half-way around the world to do so. The day when you could commit these crimes, rake in easy cash, destroy lives, and escape justice is gone. And to parents, teenagers, and everyone who uses a cell phone: please, please be careful. These devices can connect you to criminal networks around the world. Don’t assume people are who they say they are. Don’t share compromising images. And if you’re a victim, please reach out. There’s help, and law enforcement stands ready.”
“The sentencing of sextortionists Samuel and Samson Ogoshi ensures both international criminals will no longer victimize minors in the United States or throughout the world,” said Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office. “Spreading awareness on sextortion is a top priority of the FBI here in Michigan. Our hearts and prayers are with the loved ones of Jordan DeMay and those affected by the criminal acts of these individuals.”
At a press conference today, U.S. Attorney Totten emphasized the scope of this threat and the need for vigilance by sharing that multiple other deaths tied to sextortion schemes are under investigation in the Western District of Michigan.
As detailed in their plea agreements (here and here), Samuel and Samson Ogoshi engaged in a scheme while living in Nigeria to sexually exploit more than 100 victims, including at least 11 identified minor victims. They purchased hacked social media accounts and used them to pose as young women, making fake profiles and using the messaging feature on the social media accounts to contact victims. They conducted online research about their victims to learn where they lived, attended school, worked, and the identities of their family and friends. They then solicited their minor victims to produce sexually explicit images of themselves. Once they received the images, they created a collage of pictures that included the sexually explicit image with other images of the victim and their school, family, and friends. The Ogoshi brothers threatened to disclose the collages to the family, friends, and classmates of the victim unless the victim agreed to pay money using online cash applications.
In November 2022, the U.S. Attorney’s Office for the Western District of Michigan charged Samuel Ogoshi, Samson Ogoshi, and Ezekiel Robert, all Nigerian nationals, in the sextortion scheme that resulted in the death of Jordan DeMay. The Ogoshi Brothers were extradited to the United States in August 2023 and pleaded guilty in April. On March 21, a Nigerian court ordered Robert to be extradited to the United States. He has appealed that decision, and the matter is before the Nigerian High Court.
In addition, on Aug. 2, U.S. Attorney Totten announced the unsealing of a federal indictment in a separate case charging five U.S.-based defendants with conspiring to commit money laundering that facilitated the sextortion scheme.
The FBI, Marquette Sheriff’s Department, and Michigan State Police Cybercrimes Unit in Marquette are investigating the case, with the cooperation and assistance of the Economic and Financial Crimes Commission of Nigeria. The Department of Justice’s Office of International Affairs, Department of State, and Nigerian Attorney General’s Office – Ministry of Justice provided critical assistance securing the arrest and extradition of the defendants.
Assistant U.S. Attorneys Daniel Mekaru and Davin Reust for the Western District of Michigan are prosecuting the case.
Safety Tips and Resources for Victims, Teens, and Parents
The FBI provides the following tips on how people can protect themselves from sextortion schemes:
- Be selective about what you share online. If your social media accounts are open to everyone, a predator may be able to figure out a lot of information about you.
- Be wary of anyone you encounter for the first time online. Block or ignore messages from strangers.
- Be aware that people can pretend to be anything or anyone online. Videos and photos are not proof that people are who they claim to be. Images can be altered or stolen. In some cases, predators have even taken over the social media accounts of their victims.
- Be suspicious if you meet someone on one game or app and that person asks you to start talking on a different platform.
- Be in the know. Any content you create online — whether it is a text message, photo, or video — can be made public. And nothing actually “disappears” online. Once you send something, you don’t have any control over where it goes next.
- Be willing to ask for help. If you are getting messages or requests online that don’t seem right, block the sender, report the behavior to the site administrator, or go to an adult. If you have been victimized online, tell someone. Being a victim of sextortion is not your fault. You can get through this challenge, even if it seems scary and overwhelming. There are people who want to help.
If you have information about or believe you are a victim of sextortion, contact your local FBI field office, call 1-800-CALL-FBI, or report it online at tips.fbi.gov. This FBI PSA and National Center for Missing and Exploited Children PSA share survivor stories and resources for individuals to get help. More FBI sextortion resources are available here.
Georgia Man Arrested on Federal Dog Fighting, Firearms and Drug Trafficking ChargesRead the Press Release
A federal grand jury indicted Dun Terrius Bradford, 53, of Sale City, Georgia, on charges of illegally possessing 67 dogs for fighting purposes, manufacturing and possessing with intent to distribute cocaine base and possessing five firearms in furtherance of those offenses. The U.S. District Court for the Middle District of Georgia unsealed the indictment in conjunction with Bradford’s arrest today.
According to court documents, the defendant maintained a stock of 67 fighting dogs at his Sale City home. Following the execution of a search warrant, the dogs were seized and will be cared for by a program administered by the U.S. Marshals Service. Agents also recovered tools and supplies used in the training and keeping of dogs used for fighting, including modified treadmills to hold dogs in place for dog fight conditioning, injectable veterinary steroids, a home-made “breeding stand” used to immobilize female dogs who are too dog-aggressive to mate naturally and a “break stick” device used to break the bite hold of a dog during specified intervals in a dog fight. Officers also recovered cocaine base and five firearms.
If convicted, Bradford faces a maximum penalty of five years in prison per count of animal fighting charges, a maximum penalty of 20 years in prison and a fine of $1 million on the cocaine charge, a maximum penalty of 10 years in prison on the firearms charge to be served consecutively to other counts of conviction and a $250,000 fine for each dog fighting and firearms count. Under federal law, it is illegal not only to fight animals, but also to possess, train, transport, deliver, receive, buy or sell animals intended for use in fighting. 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 (ENRD) and U.S. Attorney Peter Leary for the Middle District of Georgia made the announcement.
The Department of Agriculture’s Office of the Inspector General and detectives with the Mitchell County, Georgia, Sheriff’s Office are investigating the case.
Senior Trial Attorney Ethan Eddy of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Elicia Hargrove for the Middle District of Georgia 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.
$2.95M Penalty and Permanent Injunction Resolves Lawsuit Against Verkada Inc. for Alleged Unlawful Commercial Emails, Data Security Failures and Deceptive PracticesRead the Press Release
The Justice Department and the Federal Trade Commission (FTC) announced today that Verkada Inc. (Verkada), a cloud-based security company headquartered in San Mateo, California, has agreed to a settlement requiring it to pay a $2.95 million civil penalty and implement extensive data security measures. This settlement resolves allegations that Verkada violated the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act and engaged in unfair and deceptive practices in violation of the Federal Trade Commission Act.
In a complaint filed in the U.S. District Court for the Northern District of California, the United States alleges that Verkada failed to implement reasonable security measures such as appropriate access management and data protection controls and adequate encryption of customer data. These failures allegedly exposed sensitive information — including security-camera footage of consumers visiting locations like hospitals and schools — to unauthorized access. The complaint additionally alleges that Verkada misrepresented the extent to which it used appropriate data security safeguards and complied with the Health Insurance Portability and Accountability Act of 1996 (HIPAA). The complaint also alleges that Verkada sent numerous promotional emails that failed to clearly and conspicuously notify recipients of their opportunity to opt out of such messages and failed to include a valid physical postal address, and that Verkada did not honor requests to opt out from its promotional emails within ten business days of receiving those requests, all in violation of the CAN-SPAM Act.
To resolve the lawsuit, the parties agreed to a settlement reflected by the stipulated order issued today by the Court. The stipulated order requires Verkada to pay a $2.95 million civil penalty and to comply with the CAN-SPAM Act, including by honoring requests to opt out of its commercial emails. The stipulated order also prohibits Verkada from misrepresenting its data security practices and requires it to establish a comprehensive information security program and undergo regular third-party assessments of its data security practices.
“This settlement underscores the importance of robust data security measures, especially for companies that are themselves in the security industry. Failure to protect sensitive information puts consumers at risk,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to work with the FTC to hold companies accountable for such violations.”
“When customers invite companies into private spaces to monitor consumers by using their security cameras and other products, they expect those companies to provide basic levels of security, which Verkada failed to do,” said Director Samuel Levin of the FTC’s Bureau of Consumer Protection. “Companies that fail to secure and protect consumer data can expect to be held responsible.”
Trial Attorneys Cameron A. Brown and Amanda K. Kelly, Senior Trial Attorney James T. Nelson and Assistant Director Zachary A. Dietert of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Vivian Wang for the Northern District of California are handling the case, in coordination with staff from the FTC’s Division of Privacy and Identity Protection.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov.
Justice Department Secures Language Access Agreement with Dane County, Wisconsin, Sheriff’s OfficeRead the Press Release
The Justice Department announced today that it has secured a memorandum of understanding (MOU) with the Dane County, Wisconsin, Sheriff’s Office (DCSO) as part of its Law Enforcement Language Access Initiative. The MOU resolves an inquiry into whether DCSO complied with its nondiscrimination obligations under Title VI of the Civil Rights Act of 1964 (Title VI).
Under the MOU, DCSO has agreed to take new action to improve language access for individuals with limited English proficiency (LEP) in Dane County. Title VI prohibits entities that receive federal financial assistance from discriminating on the basis of race, color and national origin. Denial of appropriate language services can be national origin discrimination prohibited by Title VI.
“To serve and protect all communities in the United States, our state and local law enforcement agencies must be able to communicate effectively with crime victims, witnesses, and other members of the public who do not speak fluent English,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Under this agreement, the Dane County Sheriff’s Office is implementing important reforms that will help ensure their services are accessible to all residents, regardless of the language they speak.”
The inquiry into DCSO began after the department received information raising concerns that an individual with LEP had not received adequate language services during the investigation of a child’s accidental death, leading to a misunderstanding about the identities of those involved in the accident. The department has offered technical assistance to DCSO, which agreed to work cooperatively with the department toward a resolution. Under the memorandum of understanding, DCSO will establish a formal language access policy that includes staff trainings, quality controls and outreach initiatives, and will undergo a period of departmental monitoring.
This agreement is part of the department’s Law Enforcement Language Access Initiative, a nationwide effort to assist law enforcement agencies in overcoming language barriers to better serve and protect communities and keep officers safe. The initiative, which is led by the Civil Rights Division, provides technical assistance resources and tools that can help state and local law enforcement provide meaningful language access to individuals with LEP, affirmatively engages law enforcement agencies that want to review, update and/or strengthen their language access polices, plans and training and strengthens the connection between law enforcement agencies, community stakeholders and populations with LEP.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt and information about limited English proficiency and Title VI is available at www.lep.gov. More information on LELAI is available at www.lep.gov/law-enforcement. Members of the public may report possible civil rights violations at civilrights.justice.gov/report/.
Justice Department Announces Terrorism Charges Against Senior Leaders of HamasRead the Press Release
Remote video URL
Note: The complaint was unsealed on Sept. 3 and can be viewed here.The Justice Department announced today the unsealing of terrorism, murder conspiracy, and sanctions-evasion charges against six senior leaders of Hamas, a designated foreign terrorist organization. The charges relate to the defendants’ central roles in planning, supporting, and perpetrating the terrorist atrocities that Hamas committed in Israel on Oct. 7, 2023 (the October 7 Hamas Massacres), involving the murders and kidnappings of countless innocent civilians, including American citizens, which was the culmination of Hamas’s decades-long campaign of terrorism and violence against Israel and its allies, including American citizens. The defendants are either deceased or remain at large.
“The Justice Department has charged Yahya Sinwar and other senior leaders of Hamas for financing, directing, and overseeing a decades-long campaign to murder American citizens and endanger the national security of the United States,” said Attorney General Merrick B. Garland. “On October 7th, Hamas terrorists, led by these defendants, murdered nearly 1200 people, including over 40 Americans, and kidnapped hundreds of civilians. This weekend, we learned that Hamas murdered an additional six people they had kidnapped and held captive for nearly a year, including Hersh Goldberg-Polin, a 23 year old Israeli American. We are investigating Hersh’s murder, and each and every one of Hamas’ brutal murders of Americans, as an act of terrorism. The charges unsealed today are just one part of our effort to target every aspect of Hamas’ operations. These actions will not be our last.”
“Yahya Sinwar and the other senior leaders of Hamas are charged today with orchestrating this terrorist organization’s decades-long campaign of mass violence and terror — including on October 7th. On that horrible day, Hamas terrorists viciously massacred nearly 1,200 innocent men, women, and children, including over 40 Americans, kidnapped hundreds more, and used sexual violence as a weapon of brutality,” said Deputy Attorney General Lisa Monaco. “Since that horrific day, we have worked to investigate and hold accountable those responsible, and we will not rest until all those who kidnapped or murdered Americans are brought to justice. Our thoughts continue to be with the families of all the victims of this barbaric terrorist attack.”
“From the moment Hamas launched its horrific attack on October 7, the FBI has been dedicated to identifying and charging those responsible for these heinous crimes,” said FBI Director Christopher Wray. “The FBI has and will continue to relentlessly investigate these attacks on civilians, including Americans. Hamas is a Foreign Terrorist Organization with a long history of violence, and the group’s actions have resulted in increased terrorism threats in the U.S. and against American interests throughout the world. Countering terrorism remains our number one priority, and our work continues.”
“The core mission of the National Security Division is to protect Americans from violent terrorists and extremist organizations like Hamas,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The atrocities committed by Hamas in Israel on October 7 are intolerable, and the Justice Department will not rest in our pursuit to hold Hamas accountable for perpetrating its campaign of terror, death, and destruction.”
“For decades, Hamas and its leadership have dedicated themselves to the eradication of the State of Israel, and to murdering, maiming, and brutalizing anyone — including dozens of Americans — who stood in their way,” said U.S. Attorney Damian Williams for the Southern District of New York. “The October 7 Hamas Massacres – in which over 40 American citizens were murdered – is only the latest act of savagery carried out by Hamas. This office has long been dedicated to serving as a bulwark against terrorism, and striking blows against its leaders. Our commitment is clear: if you hurt one member of our community, you hurt all of us — and we stand with all victims of Hamas’ reign of terror. We will bring justice to this terrorist organization from the top down for the atrocities they have committed.”
According to court documents, Harakat al-Muqawamah al-Islamiyya, commonly known as Hamas, is a terrorist organization that was founded in 1987, and has been designated as a foreign terrorist organization (FTO) by the United States since 1997. From its inception, Hamas’ stated purpose has been to create an Islamic Palestinian state throughout Israel by eliminating the State of Israel through violent holy war, or jihad. Hamas also promotes attacks against the U.S. and its citizens and, over more than two decades, Hamas has murdered and injured dozens of Americans as part of its campaign of violence and terror.
The defendants charged in the complaint are all senior leaders of Hamas who have orchestrated, overseen, and supported Hamas’s decades-long campaign of terrorism, including the October 7 Hamas Massacres. They and their co-conspirators control all aspects of the terrorist organization, including its political and military branches, known as the Politburo and Izz al-Din al-Qassam Brigades (al-Qassam Brigades).
Ismail Haniyeh was the chairman of Hamas’s Politburo from 2017 until his reported death on or about July 31. Prior to 2017, Haniyeh was the deputy chairman of the Politburo and the leader of Hamas in the Gaza Strip. Haniyeh was based principally in Turkey and Qatar.
Yahya Sinwar, also known as Abu Ibrahim, 61, is the leader of Hamas. Previously, beginning in approximately 2017, he was the leader of Hamas in the Gaza Strip, and is one of the founders of the al-Qassam Brigades. Sinwar is based principally in the Gaza Strip.
Mohammad Al-Masri, also known as Mohammed Deif and al Khalid al-Deif, was the commander in chief of the al-Qassam Brigades, a position he held from in or about 2002 until his reported death on or about July 13. Al-Masri was based principally in the Gaza Strip.
Marwan Issa, also known as Abu Baraa, was the deputy commander of the al-Qassam Brigades from approximately 2007 until his reported death on or about March 10. Issa was based principally in the Gaza Strip.
Khaled Meshaal, also known as Abu al-Waleed, 68, was the chairman of Hamas’ Politburo from approximately 2004 to 2017 and is now the head of Hamas’ diaspora office — effectively responsible for Hamas’ official presence outside of the Gaza Strip and the West Bank. Meshaal is based principally in Qatar.
Ali Baraka, 57, has been Hamas’ head of National Relations Abroad since approximately 2019, and was previously Hamas’s representative in Lebanon. Baraka is based principally in Lebanon.
Hamas has pursued its objectives through innumerable acts of brutal terrorist violence, including launching thousands of rockets specifically targeting civilian populations; suicide bombings of restaurants, markets, public transportation systems, and other public spaces; and military-style attacks on towns and residential communities. Hamas’s campaign of terrorism has killed and wounded citizens of Israel, the U.S., and many other countries.
On Oct. 7, 2023, Hamas committed its most violent, large-scale terrorist attack to date — the October 7 Hamas Massacres. Hamas targeted civilian populations with a barrage of rockets, before waves of Hamas terrorists breached the border between the Gaza Strip and Israel, infiltrated Israel, and launched attacks on civilians, by land, sea, and air. Hamas sent thousands of armed fighters into southern Israel, where they carried out the massacres of over a thousand people and the kidnappings of more than 200 others. Hamas terrorists attacked civilians, firing handguns, assault rifles, and handheld rocket launchers, in small residential communities in Kfar Aza, Be’eri, Nir Oz, Nahal Oz, Re’im, Holit, Zikim, Kerem Shalom, Sufa, and others; the Israeli town of Sderot; and a music festival held near Re’im; among other places. Armed Hamas operatives attacked and shot civilians, including children, sometimes with machineguns and sometimes at point blank range, and weaponized sexual violence against Israeli women, including through rape and genital mutilation. Hundreds of civilians, including Americans, and Israeli soldiers, were killed and wounded; other victims, including Americans, were kidnapped, taken hostage, and brought into Gaza by Hamas. As of the date of the complaint, over 40 American citizens were among those murdered, and at least eight American citizens were taken hostage or remain unaccounted for. Most recently, Hamas executed a U.S. citizen who was taken hostage by Hamas during the October 7 Hamas Massacres and remained in captivity until he was murdered.
Throughout Hamas’ existence, the organization’s ability to carry out acts of terrorism, including the October 7 Hamas Massacres, has been fueled in part by the Government of Iran, particularly the Islamic Revolutionary Guard Corps (IRGC) and its Qods Force (IRGC-QF) — the element of the IRGC responsible for conducting external terrorism operations and providing support to terrorist groups — which has supported, supplied, and trained Hamas, and by the Lebanon-based Shia Islamic terrorist organization Hizballah. Hamas’ attacks have played a significant role in the Government of Iran’s regional and global campaign of supporting terrorism to weaken and ultimately destroy both the United States and Israel. Hamas’ leaders, including the defendants, have been instrumental in Hamas’ relationship with the Government of Iran, including through personal communications with leaders in the Iranian regime. Emblematic of this close relationship, Ismail Haniyeh, who had been the chairman of Hamas’s Politburo since 2017, was reported killed in Iran on or about July 31, while visiting Tehran to attend the swearing-in of Iran’s President. Hamas’ leaders, including the defendants, have acknowledged the importance of the support from the Government of Iran and Hizballah to Hamas’ ability to carry out the October 7 Hamas Massacres, including the IRGC-QF providing Hamas, among other things, rockets and technical assistance necessary to build rockets, and extensive funding for Hamas’ terror wing.
Hamas raises money to fund its terrorist activities through a variety of methods, including by soliciting and receiving cryptocurrency payments, advertising the ostensible anonymity of such transactions. Since 2019, Hamas’ military wing has used social media and other platforms to call for cryptocurrency contributions from supporters abroad, including in the United States, to Hamas-controlled virtual wallets, explicitly acknowledging that those payments would be used to fund Hamas’ campaign of violence. Through these mechanisms, Hamas has received tens of millions of dollars in cryptocurrency payments to fund its activities.
The complaint unsealed today charges each of the defendants with: conspiring to provide material support to a foreign terrorist organization resulting in death, which carries a maximum penalty of life in prison; conspiring to provide material support for acts of terrorism resulting in death, which carries a maximum penalty of life in prison; conspiring to murder U.S. nationals outside the United States, which carries a maximum penalty of life in prison; conspiring to bomb a place of public use resulting in death, which carries a maximum penalty of death or life in prison; conspiring to use weapons of mass destruction resulting in death, which carries a maximum penalty of death or life in prison; conspiring to finance terrorism, which carries a maximum penalty of 20 years in prison; and conspiring to violate the International Emergency Economic Powers Act, which carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
Assistant U.S. Attorneys Sam Adelsberg, Jacob H. Gutwillig, Sarah L. Kushner, Michael D. Lockard, Ben Arad, and Samuel L. Raymond for the Southern District of New York and Trial Attorneys Alicia Cook and C. Alexandria Bogle of the Justice Department’s National Security Division’s Counterterrorism Section are prosecuting the case.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Arkansas Judge Convicted of Making False Statements to Law EnforcementRead the Press Release
A former Arkansas local district court judge was convicted of making false statements to the FBI on Friday.
According to court documents and evidence presented at trial, Thomas David Carruth, 64, of Clarendon, Arkansas, served as an elected Monroe County district court judge. In that role, Carruth presided over criminal and civil matters. In April 2022, Carruth solicited sex from the girlfriend of a defendant in a criminal case pending before him. The jury found that, when questioned by the FBI, Carruth lied to agents about the incident, including by falsely stating that he did not “request,” “ask,” “offer”, make “overture[s] about”, “insinuate,” or “even [think] about,” sex with the girlfriend.
The jury convicted Carruth of one count of making false statements. Carruth was acquitted of charges of bribery, honest services fraud, and violations of the Travel Act. A sentencing hearing will be scheduled at a later date. Carruth faces 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.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, Acting Assistant Director James Barnacle Jr. of the FBI’s Criminal Investigative Division, and Special Agent in Charge Alicia D. Corder of the FBI Little Rock Field Office made the announcement.
The FBI investigated the case.
Trial Attorneys Nicholas Cannon and Madison Mumma of the Criminal Division’s Public Integrity Section are prosecuting the case.
El Departamento de Justicia llega a un acuerdo con la Oficina del Sheriff del Condado de Dane, Wisconsin sobre el acceso lingüísticoRead the Press Release
El Departamento de Justicia anunció hoy que ha conseguido un memorando de entendimiento con la Oficina del Sheriff del Condado de Dane, Wisconsin, (DCSO, por sus siglas en inglés) como parte de su Iniciativa de Agencias del Orden Público para el Acceso Lingüístico. El memorando de entendimiento resuelve una indagación sobre si la DCSO cumplió con sus obligaciones antidiscriminatorias en virtud del Título VI de la ley de Derechos Civiles de 1964 (Título VI).
En virtud del memorando de entendimiento, la DCSO ha acordado tomar nuevas medidas para mejorar el acceso lingüístico para las personas con un dominio limitado del inglés (LEP, por sus siglas en inglés) en el Condado de Dane. El Título VI prohíbe la discriminación por motivos de raza, color de piel y origen nacional por parte de entidades que reciben apoyo financiero federal. La denegación de servicios lingüísticos adecuados puede considerarse como discriminación por motivos de origen nacional, la cual está prohibida por el Título VI.
«Para servir y proteger a todas las comunidades de los Estados Unidos, nuestras agencias estatales y locales del orden público deben ser capaces de comunicarse de manera eficaz con víctimas de delitos, testigos y otros miembros del público que no dominan el inglés», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «En virtud de este acuerdo, la Oficina del Sheriff del Condado de Dane está implementando reformas importantes que ayudarán a garantizar que sus servicios sean accesibles para todos los residentes, independientemente del idioma que hablen».
La indagación sobre la DCSO comenzó después de que el Departamento recibiera información que planteaba inquietudes de que una persona LEP no había recibido servicios lingüísticos adecuados durante la investigación de la muerte accidental de un niño, lo que provocó un malentendido sobre las identidades de las personas involucradas en el accidente. El departamento ha ofrecido asistencia técnica a la DCSO, que acordó trabajar en colaboración con el Departamento para lograr una resolución. En virtud del memorando de entendimiento, la DCSO establecerá una política formal de acceso lingüístico que incluya capacitaciones del personal, controles de calidad e iniciativas de proyección comunitaria. Por otra parte, se someterá a un período de supervisión departamental.
Este acuerdo forma parte de la Iniciativa de Agencias del Orden Público para el Acceso Lingüístico, un esfuerzo nacional para ayudar a las agencias del orden público a superar las barreras lingüísticas para servir y proteger mejor a las comunidades y mantener a los oficiales seguros. La iniciativa, dirigida por la División de Derechos Civiles en asociación con las Fiscalías Federales, proporciona herramientas y recursos de asistencia técnica que pueden ayudar a las fuerzas del orden público estatales y locales a proporcionar un acceso lingüístico significativo a las personas LEP, trabaja afirmativamente con las agencias del orden público que desean revisar, actualizar o fortalecer sus políticas, planes y capacitación de acceso lingüístico y fortalece la conexión entre las agencias del orden público y las partes interesadas de la comunidad LEP y las poblaciones LEP.
Puede encontrar información adicional sobre la División de Derechos Civiles en su sitio web en www.justice.gov/crt e información sobre el dominio limitado del inglés y el Título VI está disponible en www.lep.gov. Encontrará más información sobre LELAI en www.lep.gov/law-enforcement. Los miembros del público pueden denunciar posibles infracciones de los derechos civiles en civilrights.justice.gov/report/.
Omaha Woman Sentenced for Methamphetamine ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Kasey O’Boyle, age 35, of Omaha, Nebraska, was sentenced August 29, 2024, in federal court in Omaha, for her involvement in a methamphetamine conspiracy. Chief United States District Judge Robert F. Rossiter Jr. sentenced O’Boyle to 90 months’ imprisonment. There is no parole in the federal system. After her release from prison, she will begin a 4-year term of supervised release.
As part of a long-term Organized Crime Drug Enforcement Task Force (OCDETF) investigation involving Mexican-based meth being distributed in the Omaha area, Kasey O’Boyle was identified as an individual that was receiving large multi-pound shipments of meth that she would later distribute to local conspirators.
On April 26, 2023, investigators with the DEA, Omaha Police Department, and Bellevue Police Department were aware that O’Boyle was meeting with someone in a parking lot in the area of Fort and 78th Streets. O’Boyle had given the individual she was meeting a suitcase and then left the area. Investigators contacted this individual and identified him as Columbian national, Hugo Ruiz-Rios. Ruiz-Rios was in possession of 18 pounds of meth. Ruiz-Rios was previously detained by Border Patrol agents on October 15, 2022, in El paso, Texas, after crossing illegally from Mexico. Ruiz-Rios was released on November 28, 2022, after making a claim seeking asylum.
After arresting Ruiz-Rios, investigators went to the residence of O’Boyle. The vehicle that O’Boyle drove to meet Ruiz-Rios was located in the driveway. Investigators searched the vehicle and located an additional 41 pounds of meth.
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 https://www.justice.gov/OCDETF.
This case was investigated by the DEA, Omaha Police Department, and Bellevue Police Department.
Justice Department to Monitor Compliance with Federal Voting Rights Laws in MassachusettsRead the Press Release
The Justice Department announced today that it will monitor compliance with federal voting rights laws in two cities in Massachusetts for the Sept. 3 primary election. The department will monitor in the Cities of Methuen (in Essex County) and Lowell (in Middlesex County).
The Justice Department enforces the federal voting rights laws that protect the rights of all citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities across the country. In addition, the division also deploys federal observers from the Office of Personnel Management, where authorized by federal court order.
The Civil Rights Division’s Voting Section, working with U.S. Attorneys’ Offices, enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Act and Uniformed and Overseas Citizens Absentee Voting Act.
More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931.
Former Interim President of Puerto Rican Steel Distributor Pleads Guilty to Eight-Year Price-Fixing ConspiracyRead the Press Release
An executive of a steel distributor in Carolina, Puerto Rico, pleaded guilty today to conspiring with competitors to fix prices for sales of reinforcing bar, or rebar.
According to court documents filed in the U.S. District Court in San Juan, Edgardo Sola Colon (Sola), of Toa Alta, Puerto Rico, is the president of a steel distributor in Puerto Rico and is a former president of another steel distributor in Puerto Rico. These companies are some of the leading wholesale distributors of rebar in Puerto Rico. Rebar is commonly required for residential and commercial construction projects on the island, and nearly all rebar distributed in Puerto Rico is imported from other countries or the continental U.S. Collectively, Sola’s company and two other competitors controlled approximately 70% of the wholesale rebar market in the Commonwealth.
Between 2015 and 2022, including the period of reconstruction following Hurricanes Irma and Maria in September 2017, Sola conspired with competing companies and individuals to suppress and eliminate competition by fixing prices for steel products, including rebar, which were distributed to hardware stores, building contractors and other businesses and individuals in Puerto Rico, resulting in substantial profits to the conspirators.
Among other communications, Sola and his competitors exchanged WhatsApp chat messages in which they agreed on specific rebar prices, including price increases. For example, in December 2020 Sola sent to Juan Carlos Aponte, an executive at a competing company, a chat message with the price of Turkish rebar, and Aponte responded, “The position is the following: Platform $33.95, 10 bundles $34.50, Fewer than 10 bundles: $34.95” before asking, “The question is are we on the same page?” Sola responded, “Yes, that is what I am doing.”
In his plea agreement, Sola admitted that more than $50 million in sales by his companies were affected by the conspiracy.
On Aug. 7, Aponte pleaded guilty in federal court in Puerto Rico to participation in the same price-fixing conspiracy, and now awaits sentencing.
“In pleading guilty, this defendant admitted to a long-running agreement to fix prices on rebar, a critical component of the construction supply chain for Puerto Rico,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “This guilty plea demonstrates the Antitrust Division’s continued commitment to holding accountable individuals who collude to raise prices and harm all consumers and businesses in Puerto Rico. We and our law enforcement partners will continue to prosecute the people responsible for anticompetitive criminal conduct like this.”
Violating the Sherman Act, which is a federal criminal antitrust statute, is a felony. The maximum penalty for individuals convicted of violating the Sherman Act is 10 years in prison and a $1 million criminal fine. The maximum penalty for corporations is a $100 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.
Sola’s sentencing is set for Dec. 16. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s Washington Criminal Section investigated the case, with the assistance of the FBI San Juan Field Office.
Trial Attorneys April Ayers-Perez, Alison Friberg and Taylor Bernhardt of the Antitrust Division’s Washington Criminal Section and Senior Litigation Counsel John Davis of the Antitrust Division’s Litigation Program are prosecuting the case.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258 or visit www.justice.gov/atr/report-violations.
El Departamento de Justicia monitoreará el cumplimiento de las leyes federales de derechos electorales en MassachusettsRead the Press Release
El Departamento de Justicia anunció hoy que monitoreará el cumplimiento con las leyes federales electorales en dos ciudades de Massachusetts en las elecciones primarias del 3 de septiembre. El Departamento monitoreará en las ciudades de Methuen (en Essex County) y Lowell (en Middlesex County).
El Departamento de Justicia hace cumplir las leyes federales de derechos electorales que protegen el derecho de acceso a las urnas de todos los ciudadanos. El Departamento envía personal del departamento periódicamente a monitorear elecciones en comunidades a través de todo el país. Además, la División envía observadores federales de la Oficina de Administración de Personal de EE. UU. según autorizado por una orden judicial federal.
La Sección de Votación de la División de Derechos Civiles, junto con las Oficinas de los Fiscales Federales, vela por el cumplimiento de las leyes federales civiles que protegen el derecho al voto, incluyendo la Ley del Derecho al Voto, la Ley Nacional de Inscripción de Votantes, la Ley Ayudemos a Estados Unidos a Votar, y la Ley de Votación para los Uniformados y los Ciudadanos en el Extranjero.
Información adicional sobre la votación y las elecciones está disponible en el sitio web del Departamento de Justicia en www.justice.gov/crt/voting/. Aprenda más sobre la Ley del Derecho al Voto y otras leyes federales electorales en www.justice.gov/crt/voting-section. Denuncias relacionadas a posibles vulneraciones de las leyes federales de derechos electorales pueden presentarse mediate el formulario en línea de la División de Derechos Civiles en https://civilrights.justice.gov/ o por teléfono al (800) 253-3931.
Three Men Sentenced to Federal Prison for Conspiring to Distribute Cocaine Using the United States MailRead the Press Release
PENSACOLA, FLORIDA – Jason R. Coody, United States Attorney for the Northern District of Florida, announced the sentences of three defendants who were convicted for their participation in conspiring to distribute cocaine:
• Omar Josue Morales-Rodriguez, 45, of Freeport, Florida was sentenced to 180 months in federal prison after previously pleading guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine, one count of distribution and possession with intent to distribute cocaine, and one count of possession of a firearm and ammunition by a convicted felon.
• Marcos Aguilar Gonzalez, 50, of Santa Rosa Beach, Florida, and Edmar Agustin Gonzalez, 34, of Crestview, Florida, were each sentenced to serve 18 months in federal prison after previously pleading guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine. Aguilar Gonzalez also pled guilty to an additional count of distribution and possession with intent to distribute cocaine.
Each will also be required to serve a term of supervised release following their prison sentence.
“This investigation demonstrates the effectiveness and collaborative efforts of our local and federal law enforcement partners, to identify and intercept shipments of illegal substances via the United States Mail,” said U.S. Attorney Coody. “We remain committed to support their efforts through the investigation and prosecution of criminals bringing drugs into North Florida. The imposed sentences illustrate the significant consequences of harming our citizens through their illicit drug trafficking activities.”
A multi-agency investigation led by the Walton County Sheriff’s Office revealed that between October 2019, and June 13, 2023, the three defendants conspired together and with others to ship cocaine via the United States Mail from Puerto Rico to addresses in Okaloosa and Walton County. The United States Postal Inspection Service intercepted five packages, three of which contained
one kilogram of cocaine each, and one of which contained 125 grams of cocaine. The fifth package, which was shipped from Walton County to Puerto Rico, contained $10,000. In addition to the drugs and cash, law enforcement seized four firearms and several rounds of ammunition that belonged to Morales-Rodriguez who was previously convicted in federal court in Puerto Rico and served three years in federal prison for possessing firearms as a convicted felon. At sentencing, Morales-Rodriguez was found to be the leader and organizer of the conspiracy and held accountable for causing 20 United States Mail packages containing a total of at least 14 kilograms of cocaine to be shipped via the United States Mail from Puerto Rico to Okaloosa and Walton County.
“When people choose to distribute illicit drugs in the U.S. Mail, they should know the U.S. Postal Inspection Service, along with our law enforcement partners, will actively pursue those responsible, and bring them to justice,” said Juan A. Vargas, Inspector In Charge, U.S. Postal Inspection Service, Miami Division. “The outcome of this case should serve as a significant deterrent for anyone else considering the distribution of illicit drugs through the U.S. Mail. I want to thank our partners in the U.S. Attorney's Office for the Northern District of Florida, Walton County Sheriff’s Office, the Florida Highway Patrol, and the Drug Enforcement Administration."
"The duration of this investigation highlights our commitment to fighting illegal drug activity in Walton County," said Captain Dustin Cosson of the Walton County Sheriff's Office Criminal Investigations Bureau. "This case represents countless hours of work dedicated to holding traffickers accountable. The diligence of our narcotics investigators coupled with our strong partnerships with the DEA and the U.S. States Postal Service should send a clear message to anyone involved in similar activities."
The case resulted from a joint investigation by the Walton County Sheriff’s Office, the United States Postal Inspection Service, the Drug Enforcement Administration, and the Florida Highway Patrol. The case was prosecuted by Assistant United States Attorney J. Ryan Love.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Miami Tax Return Preparer Agrees to Permanent Injunction and DisgorgementRead the Press Release
The U.S. District Court for the Southern District of Florida issued a permanent injunction today against Miami tax return preparer Richard Louis, which bars him from preparing federal income tax returns, working for or having any ownership stake in any tax preparation business, assisting others (including family members) prepare tax returns or set up business as a preparer and transferring or assigning customer lists to any other person or entity. The court also ordered Louis to disgorge $390,000 in ill-gotten gains he received from his return preparation business. Louis agreed to both the injunction and ordered disgorgement.
In June, the Court enjoined seven independent contractors who worked with Louis — Harold Bornelous, Romeo Davis, Teddy Davis, Joseph Garrett, Demetrius Knowles, Daniel Oku and Marlyne Wah — from preparing returns for others, but allowed the seven defendants to apply for reinstatement as return preparers after two years if they successfully complete the IRS' Annual Filing Season Program. The independent contractors agreed to the injunctions entered against them.
The complaint alleged that Louis and the independent contractors prepared returns for customers that claimed various false or fabricated deductions and credits, including fabricated residential energy credits, false and exaggerated itemized deductions and fictitious and inflated business expenses. According to the complaint, Louis marketed himself as Taxman and he, acting in concert with the seven independent contractors, prepared thousands of tax returns for customers over the past ten years.
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 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 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.
Louis Injunction and Disgorgement Order_0.pdf June 2024 Injunction Order_0.pdfMacy Man Sentenced for Assault with a Dangerous Weapon in Indian CountryRead the Press Release
United States Attorney Susan Lehr announced that Victor Miller, age 32, of Macy, Nebraska, was sentenced on August 29, 2024, in federal court in Omaha, Nebraska, for assault with a dangerous weapon with intent to do bodily harm in Indian Country. United States District Court Judge Brian C. Buescher sentenced Miller to 41 months’ imprisonment. There is no parole in the federal system. After Miller’s release from prison, he will begin a 3-year term of supervised release.
In May 2023, Miller approached a group of people playing horseshoes in a residential area of Macy, Nebraska. Miller ran up to one of the players, a male victim known to Miller, and began slashing at the victim with a blade. The victim shouted to others present that Miller had a knife, and Miller’s blade cut the victim’s hand and wrist. The victim and others present began throwing horseshoes at Miller to stop his attack, and Miller fled the scene. After a call for emergency medical services, the victim was transported for care and required several sutures to close the lacerations caused by Miller.
This case was prosecuted in federal court because the assault was a felony and occurred on the Omaha Nation Indian Reservation in Nebraska.
This case was investigated by the Federal Bureau of Investigation.
Jury Convicts Colorado Man for Kidnapping Employee from Michael Bloomberg’s RanchRead the Press Release
CHEYENNE - A federal jury convicted a Colorado man yesterday for kidnapping a woman from Michael Bloomberg’s ranch in February 2022.
Joseph Beecher, 51, of Craig, was convicted of kidnapping, carjacking, using/carrying a firearm during a crime of violence, and transportation of stolen firearms.
According to evidence presented at trial, Beecher lived and worked at an apartment complex in Craig. In the early morning hours of Feb. 2, 2022, Beecher was informed by his employer that his services were no longer needed. Beecher broke into his employer’s home and stole two firearms, including a Bushmaster AR-style rifle. Beecher then drove to a ranch in Colorado owned by Michael Bloomberg, intent on killing Mr. Bloomberg, but finding only a female employee present on the property. Beecher took the woman hostage at gunpoint and forced her to drive him to various locations in an effort to locate and kill another media mogul in Colorado. Unable to find his second target, Beecher eventually forced the woman at gunpoint to drive him to the Stage Coach Motel in Cheyenne, where Beecher could rest and figure out his next criminal act. In the early morning hours of February 3, 2022, SWAT officers with the Cheyenne Police Department rescued the woman and arrested Beecher at the motel. The woman was physically unharmed.
The trial was held before U.S. District Court Judge Alan B. Johnson in Cheyenne.
Beecher was indicted on March 17, 2022, and pleaded not guilty on March 21, 2022. Sentencing has been set for November 18. Beecher faces a mandatory minimum sentence of seven years and up to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Margaret Vierbuchen prosecuted the case.
The FBI, Cheyenne Police Department, Rio Blanco County Sheriff’s Office, Colorado Bureau of Investigation, and the Craig Police Department investigated the case.
Case No. 22-CR-00028
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN
###
Court Shuts Down Ohio Return Preparer and His BusinessesRead the Press Release
The U.S. District Court for the Southern District of Ohio issued a permanent injunction today against an Ohio tax return preparer.
Emmanuel Antwi and his Cincinnati businesses — Manny Travel Agency & Business Services Inc. and Manny Financial, Insurance & Accounting Firm LLC — consented to the injunction, which permanently bars them from preparing federal tax returns for others. The United States’ claim for an order demanding Antwi turnover ill-gotten gains he received in the form of tax preparation fees remains pending.
According to the civil complaint, since at least 2020, Antwi filed hundreds of tax returns each filing season with at least 95% of the returns he prepared annually claiming a refund. Allegedly, Antwi knowingly took unreasonable or incorrect positions on returns he prepared that resulted in understatements of the tax his customers owed and overstatements of the refunds to which they were entitled to receive. In particular, the complaint alleges that Antwi prepared returns that claimed deductions for purported business losses or employee business expenses that he knew were false. The complaint also alleges that Antwi prepared returns where he knowingly reported the wrong filing status.
As a result of the court’s order, Antwi must send notice of the injunction to each person for whom he or his businesses prepared federal tax returns, amended tax returns or claims for refund between Jan. 1, 2019, to the present. Additionally, the order provides that Antwi must post a copy of the permanent injunction both on websites that he and his businesses maintain and at physical locations where any type of business is conducted.
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 10 tips to avoid tax season fraud and ways to safeguard their personal information.
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.
Antwi Injunction Order.pdfArizona Man Pleads Guilty to COVID-19 Relief Fraud and Filing a False Claim with the IRSRead the Press Release
An Arizona man pleaded guilty yesterday to wire fraud and filing a false refund claim with the IRS.
According to court documents and statements made in court, in 2020 and 2021, Roy L. Layne submitted false applications on behalf of several bogus businesses to the U.S. Small Business Administration (SBA) for loans from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, two federal programs created to provide financial assistance to Americans suffering economic harm as a result of the COVID-19 pandemic. In those applications, Layne claimed that the businesses had dozens of employees and earned hundreds of thousands in gross receipts. To support his false claims and to create the appearance of genuine business activity, Layne created false business and employment tax forms that he filed with the IRS and submitted to the SBA. In total, Layne requested and received over $300,000 in loans to which he was not entitled.
In addition, in 2022, Layne filed false returns with the IRS that sought nearly $7.5 million in refunds, of which the IRS paid approximately $550,000.
Layne is scheduled to be sentenced on Feb. 3, 2025. He faces a maximum penalty of 30 years in prison for each wire fraud charge and five years for the false claim charge. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Gary M. Restaino for the District of Arizona made the announcement.
IRS Criminal Investigations and the FBI are investigating the case.
Trial Attorney Matthew R. Hoffman of the Justice Department’s Tax Division and Assistant U.S. Attorney Mary Sue Feldmeier for the District of Arizona are prosecuting the case.
Justice Department, Department of Labor, Federal Trade Commission and National Labor Relations Board Sign Memorandum of Understanding to Support Merger ReviewRead the Press Release
The Justice Department, Department of Labor (DOL), Federal Trade Commission (FTC) and National Labor Relations Board (NLRB) have signed an interagency memorandum of understanding (MOU) to further communication and coordination between the agencies to protect American workers and promote fair competition in labor markets.
Acting Secretary of Labor Julie Su, Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division, FTC Chair Lina Khan and NLRB General Counsel Jennifer Abruzzo all signed the MOU as part of the agencies’ coordinated efforts to ensure that mergers between employers do not threaten harm to competition for workers.
“Workers are the backbone of our economy, and it’s critical that the impact on workers and the labor market are given due consideration when analyzing mergers and acquisitions,” said Acting Secretary Su. “The Department of Labor is committed to providing information and data to strengthen the Department of Justice and Federal Trade Commission’s understanding of labor markets and we look forward to deepening our work to protect workers by promoting fair competition in the labor markets.”
“Competition in labor markets means higher wages, better working conditions and more opportunities for workers and their families,” said Assistant Attorney General Kanter. “Our partnership with the FTC, NLRB and DOL will help us identify and take action against mergers that threaten to harm competition for workers. The Antitrust Division did just that when we successfully challenged a merger between book publishers that would have decreased compensation for authors. Promoting workers’ right to earn a fair wage is central to the mission of each of our agencies, and we look forward to deepening our collaboration together.”
“Congress passed the antitrust laws to ensure that all Americans benefit from free and fair competition. When businesses vigorously compete for workers, workers enjoy better wages and working conditions as well as greater opportunity and freedom,” said FTC Chair Khan. “By deepening partnerships with the National Labor Relations Board, Department of Labor and Justice Department’s Antitrust Division, the FTC will keep building on our whole-of-government efforts to ensure that all Americans can get a fair shot in our economy, free from unlawful coercion.”
“Taking a whole-of-government approach to enforcing workers’ rights is critically important, and we’re thrilled to be partnering with the antitrust agencies to enhance their ability to obtain important information on the potential effects of mergers on workers,” said NLRB General Counsel Abruzzo.
This MOU supplements existing bilateral agreements between the Antitrust Division and DOL and the Antitrust Division and NLRB. Key provisions of the MOU support the Antitrust Division and FTC’s (together, the Antitrust Agencies) work to review mergers that may threaten harm to competition. Those resources include the DOL and NLRB’s (together, the Labor Agencies) organizational contacts and experts, data on labor markets and jobs and enforcement information.
In addition, the MOU supports further training, meetings and coordination among all four signatories. Through this MOU, the Antitrust Agencies and Labor Agencies commit to working together to ensure the Antitrust Agencies have access to all relevant and appropriate information when they evaluate the potential impacts on labor markets from mergers and acquisitions between businesses.
Arlington fentanyl trafficker sentenced to prison after selling pills that caused an overdose deathRead the Press Release
ALEXANDRIA, Va. – An Arlington man was sentenced today to 10 years in prison for trafficking fentanyl and carrying a firearm during a drug-trafficking crime.
According to court documents, from May 2020 to April 27, 2023, Shan Mehmood, 21, regularly acquired and sold fentanyl. On March 7, 2023, a purchaser contacted Mehmood through Instagram to buy four fentanyl pills. Mehmood met the purchaser at a shopping center in Falls Church and sold him four fentanyl pills at 1:15 p.m. At 6:45 p.m., police responded to a suspected overdose at a residence in Arlington and found the purchaser unconscious and in cardiac arrest. Lying next to him was a piece of foil wrapped around a partially burnt fentanyl pill and another fentanyl pill was in his pocket. The victim was transported to a hospital that evening and was pronounced dead the following day. An autopsy identified acute fentanyl intoxication as the cause of death.
Mehmood learned of the victim’s death shortly after it occurred but continued to distribute fentanyl pills.
On April 27, 2023, Arlington County Police executed a search warrant at Mehmood’s residence. Mehmood possessed a plastic bag containing 357 blue M30 counterfeit pills containing fentanyl with a net weight of 38.46 grams, two one-gallon bags containing four ounces of marijuana, a 9mm semi-automatic handgun, 9mm ammunition, firearm accessories, digital scales, and $3,846 in cash.
Mehmood pled guilty on Feb. 28 to conspiracy to distribute 40 grams or more of fentanyl, distribution of fentanyl, possession with intent to distribute fentanyl, and using and carrying a firearm during and in relation to a drug trafficking crime.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David E. Geist, Acting Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after sentencing by U.S. District Judge Rossie D. Alston Jr.
The Arlington County Police Department provided significant assistance in the case.
Assistant U.S. Attorneys James L. Trump and Catherine Rosenberg prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-11.
U.S. Navy Shipbuilder Pleads Guilty to Financial Accounting Fraud Scheme and Obstructing a Defense Department AuditRead the Press Release
Austal USA LLC (Austal USA), a Mobile, Alabama-based shipbuilder that constructs vessels for the U.S. Navy and U.S. Coast Guard, pleaded guilty yesterday and has agreed to pay $24 million to resolve an investigation by the Justice Department related to an accounting fraud scheme and efforts to obstruct the Defense Contract Audit Agency (DCAA) during a financial capability audit. Austal USA is a wholly owned subsidiary of Austal Limited, an Australian company that is publicly traded on the Australian Securities Exchange and was traded over-the-counter in the United States via American Depositary Receipts.
The Justice Department’s criminal resolution was coordinated with the U.S. Securities and Exchange Commission (SEC). Separately, Austal USA also entered into a False Claims Act settlement with the department’s Civil Division to resolve claims that it knowingly provided non-compliant parts to the U.S. Navy.
“Austal USA, a shipbuilder for the U.S. military, engaged in a years-long scheme to illegally inflate its profits on ships the company was building for the U.S. Navy, reporting false financial results to investors, lenders, and its auditors,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The investing public, the U.S. Navy, and the Defense Contract Audit Agency relied on Austal USA to tell the truth about its financial condition and its performance on U.S. Navy contracts. Today’s guilty plea underscores the Department of Justice’s commitment to holding U.S. government contractors accountable for their criminal misconduct and ensuring that they engage honestly with the U.S. government.”
“Maintaining our national security and military infrastructure cannot come at the cost of the integrity of our contracting processes,” said U.S. Attorney Sean P. Costello for the Southern District of Alabama. “Today’s actions ensure accountability and promote the rule of law in this critical arena.”
According to court documents, from at least in or around 2013 through at least in or around July 2016, Austal USA and its co-conspirators conspired to mislead Austal Limited’s shareholders, independent financial statement auditors and the investing public about Austal USA’s financial condition. Specifically, Austal USA artificially suppressed an accounting metric known as an “estimate at completion” (EAC) in relation to multiple Littoral Combat Ships that Austal USA was building for the U.S. Navy. Suppressing the EACs had the effect of falsely overstating Austal USA’s profitability on those shipbuilding efforts and Austal Limited’s earnings reported in its public financial statements. Austal USA and its co-conspirators manipulated the EAC figures in part by using so-called “program challenges,” which were false plug numbers to hide growing shipbuilding costs that should have been incorporated into the company’s financial statements. Austal USA did this to maintain and increase the share price of Austal Limited’s stock. When the higher costs were eventually disclosed to the market, Austal Limited wrote down over $100 million, and the stock price was significantly negatively impacted.
“Defense contractors that engage in fraud erode the public’s trust in our Armed Forces,” said Director Omar Lopez of the Naval Criminal Investigative Service (NCIS). “NCIS and our investigative partners are determined to hold those accountable whose actions erode that trust. We are committed to rooting out economic crime that negatively impacts the readiness of the Department of the Navy.”
“This case is a direct result of the superb dedication of the investigative and prosecution teams,” said Director Kelly P. Mayo of the Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS). “These committed professionals’ efforts send a clear message to DoD contractors of our unwavering resolve to investigate and prosecute fraud, corruption, and efforts to circumvent compliance measures that reduce our combat effectiveness.”
The department reached this resolution with Austal USA based on a number of factors, including, among others, the nature and seriousness of the offense and the pervasiveness of the misconduct at the most senior levels of Austal USA. Austal USA received credit for affirmative acceptance of responsibility and limited credit for its cooperation with the department’s investigation, which included facilitating interviews with current and former employees, enabling the department to promptly produce records in a related court case, and making a timely disclosure of all relevant facts and documents pertaining to an unrelated matter. However, Austal USA’s cooperation was limited in a number of respects, including: Austal USA did not provide to the department any relevant facts relating to this conduct until two years after learning of the department’s investigation; Austal USA produced certain relevant documents after significant delay; Austal USA was delayed in responding to certain requests from the government, and often required follow-up requests from the government before responding; and Austal USA did not at all times demonstrate a commitment to full and timely cooperation.
Austal USA also engaged in remedial measures, but those remedial measures were untimely and incomplete, including that Austal USA did not begin disciplining employees involved in the misconduct until more than two years after Austal USA learned of the government’s investigation and did not undertake any independent steps to make restitution to the victims of its securities fraud scheme. Austal USA has begun remediating weaknesses in internal controls that allowed the company’s misconduct to occur, but Austal USA’s remediation of its controls is still ongoing and requires additional improvements and testing.
Under the terms of the plea agreement, which still must be accepted by the court, Austal USA pleaded guilty to one count of securities fraud and one count of obstruction of a federal audit. Based on application of the U.S. Sentencing Guidelines, the department determined that the appropriate criminal penalty is $73,572,680.10. However, due to Austal USA’s demonstrated inability to pay the criminal fine, Austal USA and the department agreed, consistent with the department’s inability to pay guidance, that Austal USA would pay a criminal fine of $24 million and restitution of up to $24 million for losses to Austal Limited shareholders. The department has agreed to credit all of the criminal fine and restitution against amounts Austal USA will pay to resolve an investigation by the SEC for related conduct.
Austal USA has also agreed to retain an independent compliance monitor for a period of three years, and Austal USA and Austal Limited have agreed to continue to implement a compliance and ethics program at Austal USA designed to prevent and detect fraudulent conduct throughout its operations. Austal USA and Austal Limited have also agreed to continue to cooperate with the Justice Department in any ongoing or future criminal investigations relating to this conduct. In addition, Austal USA will serve three years of probation.
A sentencing hearing is scheduled for Nov. 25.
Three former Austal USA executives, Craig Perciavalle, Williams Adams, and Joseph Runkel, were indicted on March 30, 2023 on one count of conspiracy to commit wire fraud and wire fraud affecting a financial institution, five counts of wire fraud, and two counts of wire fraud affecting a financial institution. They await trial.
NCIS and DCIS are investigating the case. The Justice Department’s Office of International Affairs and authorities in Australia, as well as DCAA’s Office of Investigative Support, provided valuable assistance in the matter.
Assistant Chief Kyle Hankey and Trial Attorneys Laura Connelly and Spencer Ryan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher Bodnar for the Southern District of Alabama are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. Victims can find case updates and additional information at www.justice.gov/criminal/criminal-vns/case/austal-usa-llc.
Under the terms of the plea agreement, the SEC would handle the distribution of funds to harmed investors. Investors harmed as a result of the misconduct of defendant should watch the SEC’s Harmed Investors page for further developments regarding the SEC’s distribution of funds to harmed investors.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Shares Internet Safety Materials for Families During the Start of the SchoolyearRead the Press Release
BOISE – With families and communities throughout Idaho marking the start of the school year, U.S. Attorney Josh Hurwit and his team are sharing online safety resources with parents, educators, and students.
The U.S. Attorney’s Office works hand-in-hand with federal, state, and local partners to ensure Idaho’s children are protected online. Sadly, the prevalence of smartphones and other electronic devices has been associated with criminal activity targeted at young people. Predators seek to exploit and abuse children through online communication and through “sextortion” and other schemes. In 2023, the National Center for Missing and Exploited Children (NCMEC) received over 36 million reports related to online sexual exploitation, an increase of 12 percent from 2022. And this problem extends to Idaho. In the first half of 2024, the Idaho Internet Crimes Against Children Task Force received 2,424 reports of child exploitation.
Awareness is critical to preventing these heinous crimes. The U.S. Attorney’s Office encourages parents, educators, and community members to review helpful safety resources available to the public, including those found at NCMEC’s NetSmartz website: missingkids.org/NetSmartz/home. Printable internet safety tips sheets for parents and children, in both English and Spanish, are provided with this press release.
In addition, today, U.S. Attorney Hurwit and his Office’s Project Safe Childhood Coordinator, Kassandra McGrady, released a public service announcement, available here, to bring awareness to sextortion, a type of blackmail used by offenders to acquire sexual content from a child. The criminal may use deceit or coercion to obtain a nude or sexual image of the child before blackmailing them for money or more content.
“As we begin a new schoolyear full of excitement and promise, I urge parents and educators to help educate our youth on internet safety,” said U.S. Attorney Hurwit. “Sextortion and other crimes lead to devastating effects on our children, causing stress, mental health issues, and even suicide. We must protect our children from online predators and arm our children with the knowledge and resources for how to seek help if they fall victim.”
The PSA aims to raise awareness about the unfortunate growing prevalence of sextortion and highlight the U.S. Attorney’s Office’s commitment to working alongside Idaho’s dedicated federal, state, and local law enforcement partners to put an end to this awful crime.
Follow these steps if you believe your child has been a victim of sextortion:
- Preserve the evidence. Take screenshots or write down names, usernames, and phone numbers.
- Report to law enforcement. Contact your local law enforcement and/or your local FBI field office and report it online at tips.FBI.gov.
- Report the perpetrator on social media. Social media apps have safety features you can use to report misconduct that violates their terms of service.
- Please do not comply with the predator’s demands. Complying with, or paying the perpetrator, rarely stops the harassment or blackmail and may fuel them to continue.
- Let NCMEC help get your images down. Visit missingkids.org/IsYourExplicitContentOutThere to learn how to notify companies yourself or visit missingkids.org/gethelpnow/cybertipline to report to NCMEC for help with the process.
Remember, the blackmailer is to blame. Even if your child made a choice they regret, the blackmailer is committing a very serious crime.
“We are here to help. If you have concerns, reach out to our office, your local law enforcement agency or contact the National Center for Missing and Exploited Children,” said U.S. Attorney Hurwit. “Together we can end the sexual exploitation of teens and kids in Idaho. Please take time to learn how to identify and respond to people who are at risk or who have experienced sextortion.”
###
North Carolina Tax Return Preparer IndictedRead the Press Release
A federal grand jury in Greensboro, North Carolina, returned an indictment yesterday charging a former Raleigh, North Carolina, man with 27 counts of preparing and filing false tax returns and obstructing the IRS.
According to the indictment, Jerome Osuamadi Nwabueze owned and operated Total Tax Services, located in High Point, North Carolina. Between 2018 and 2022, to secure higher refunds for his clients, Nwabueze allegedly prepared and filed with the IRS false tax returns that reported wages and withholdings, business income and expenses and education expenses that were fabricated or inflated. Nwabueze also allegedly prepared and filed false tax returns for himself that reported similar false items, and omitted income he earned from preparing tax returns. These false tax returns also generated refunds for Nwabueze to which he was not entitled.
The indictment further alleges that, when the IRS audited Nwabueze in 2020, he fabricated tax documents and provided them to the IRS.
If convicted, Nwabueze faces a maximum penalty of three years in prison for each false tax return charge and three years in prison for the obstruction charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Isaiah Boyd of the Tax Division and Assistant U.S. Attorney Ashley Waid for the Middle District of North Carolina 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.
Mississippi Seafood Distributor and Managers Plead Guilty to Conspiracy and Misbranding of SeafoodRead the Press Release
A Mississippi seafood distributor and two company managers pleaded guilty today to conspiring with others to mislabel seafood and to commit wire fraud by marketing inexpensive and frozen imported substitutes as more expensive and premium local species.
Quality Poultry and Seafood Inc. (QPS), the largest seafood wholesaler on the Mississippi Gulf Coast, has agreed to pay the United States $1 million in forfeitures and a criminal fine of $150,000. QPS sales manager Todd A. Rosetti and business manager James W. Gunkel, both of Ocean Springs, Mississippi, also pleaded guilty to misbranding seafood to facilitate QPS’ fraud.
QPS admitted to participating in this fish substitution scheme from as early as 2002 and continuing through November 2019. The indictment alleges that QPS recommended and sold to its restaurant customers foreign-sourced fish that could serve as convincing substitutes for the local species the restaurants advertised on their menus. QPS also labeled the cheap imports that it sold to customers at its own retail shop and café as premium local fish.
“QPS and company officials went to great lengths in conspiring with others to perpetuate fraud for more than a decade, even after they knew they were under federal investigation,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Mislabeling seafood harms local wholesalers and fishermen who compete to sell locally sourced, premium fish in a market unfairly flooded with less expensive fish, frozen and imported from overseas.”
“When imported substitutes are marketed as local domestic seafood, it depresses the value of authentic Gulf Coast seafood, which means that honest local fishermen and wholesalers have a harder time making a profit,” said U.S. Attorney Todd W. Gee for the Southern District of Mississippi. “This kind of mislabeling fraud hurts the overall local seafood market and rips off restaurant customers who were paying extra to eat a premium local product. These convictions should serve as a warning: restaurants and wholesalers will face criminal prosecution if they are not honest with customers about what they are actually buying.”
“U.S. consumers expect their seafood to be correctly identified. When sellers purposefully substitute one fish species for another, they deceive consumers and cause potential food safety hazards to be overlooked or misidentified by processors or end users,” said Special Agent in Charge Justin Fielder of the Food and Drug Administration (FDA)’s Office of Criminal Investigations, Miami Field Office. “We will continue to investigate and bring to justice those who put profits above public health.”
The indictment alleges that even after agents from the FDA executed a criminal search warrant at QPS to investigate its sale of mislabeled fish, QPS continued for over a year to sell frozen fish imported from Africa, South America and India for use as substitutes for local premium species.
Mary Mahoney’s, which pleaded guilty in May, admitted that between December 2013 and November 2019, it fraudulently sold, as local premium species, approximately 58,750 pounds (over 29 tons) of fish that was not the species identified on its menu. QPS supplied seafood to Mary Mahoney’s and many other restaurant restaurants and retailers.
QPS, Rosetti and Gunkel will be sentenced on Dec. 11. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
FDA’s Office of Criminal Investigations is investigating the case.
Senior Trial Attorney Jeremy F. Korzenik of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Andrea Jones for the Southern District of Mississippi are prosecuting the case.
Former Kearney Man Sentenced to 9 Years for Wire FraudRead the Press Release
United States Attorney Susan Lehr announced that Jeffery S. Sikes, age 43, formerly of Kearney, Nebraska, was sentenced on August 27, 2024, in federal court in Lincoln, Nebraska for committing wire fraud. Senior United States District Judge John M. Gerrard sentenced Sikes to 108 months’ imprisonment. After Sikes’ release from prison, he will begin a 3-year term of supervised release. There is no parole in the federal system. Sikes was additionally ordered to pay $819,169.96 in restitution to the victims of his crimes.
Beginning in early 2012, and continuing through on or about July 1, 2014, Sikes devised and enacted multiple fraudulent schemes in the District of Nebraska. The Indictment charged Sikes with enacting several separate schemes with different victims being preyed upon by Sikes for each individual scheme. In each scheme Sikes defrauded others, obtaining money and property by the means of materially false and fraudulent pretenses, representations, promises, and omissions and during the course of which different wires or mails would be used in furtherance of the schemes. The charges included a scheme representing to real estate developers that Sikes had located tenants and demanding a finder’s fee—when in fact no tenants existed. In another scheme, Sikes convinced others to invest their retirement into an alleged new research and development company which did not in reality exist. Each scheme typically included complex fraudulent documents which were used to lull the victims into a sense of security.
In the scheme to which Sikes pled guilty, he approached B & J Partnership, d/b/a Speedway Properties (“B & J”), as a “consultant” for Vanguard Nebraska, a limited liability company (“Vanguard”). He contacted B & J about obtaining a lease for commercial space owned by B & J in Lincoln, Nebraska. Sikes represented to B & J that Vanguard intended to establish laboratory space in Lincoln for use in research and development. Sikes proposed that B & J provide $750,000 in financing for the build out of the commercial space owned by B & J. He provided complex falsified documents to convince B & J to enter into the lease and to finance the building including fraudulent balance sheets and IRS tax forms; fraudulent information about purported subcontractors who were allegedly responsible for the construction; and fraudulent bills payable from said subcontractors for work performed or materials related to the construction costs for the property. In reality, Vanguard was never a real company. All documents submitted to B &J and others concerning Vanguard and the subcontractors allegedly working on the project were manufactured and fraudulently created by Sikes and others working with Sikes. During the course of this scheme, Sikes directed the disbursement of funds for fraudulent invoices of $507,231.96 causing a loss to B & J.
In addition to the loss to B & J, the other schemes mentioned within the Indictment resulted in the loss of an additional $311,938 to other victims. In total, Sikes is responsible for defrauding multiple companies, organizations, and individuals for $819,169.96.
Sikes pled guilty to one count of wire fraud on April 28, 2017. On January 5, 2018, Sikes did not appear for his sentencing hearing and a warrant was issued for his arrest. It was later determined that Sikes fled Nebraska to Alabama, where he was living in hiding with others and using the alias “Kenneth Allen.” In February of 2022, Sikes was arrested and charged with conspiracy to maliciously destroy by fire in the District of Alabama—a crime for which he was convicted on May 30, 2023. Pursuant to the documents in that case, while living as a fugitive in Alabama, Sikes led a conspiracy of seven other co-defendants. As part of the conspiracy, Sikes and the others set fires to four different Walmart stores in Alabama and Mississippi. Each of the fires were set during business hours while customers, employees, and vendors were inside the stores. In the lead up to setting these fires, Sikes and his conspirators had meetings and drafted a “Declaration of War and Demands for the People” that made demands and consisted of threats against Walmart if their demands were not met.
Sikes pled guilty to the conspiracy charge in the Alabama case. He was sentenced to 216 months’ (18 years) imprisonment, supervised release for 3 years, and to pay restitution in the amount of $7,295,533.23 to be paid jointly and severally with co-defendants from that case. After Sikes’ sentencing in Alabama, he was returned to the District of Nebraska to face sentencing for his crimes committed as part of this case in the District of Nebraska. The sentence of imprisonment imposed today by Senior District Judge Gerrard was ordered to be consecutive to Sikes’ term of imprisonment imposed in the Alabama case.
Following today’s sentencing United States Attorney Susan T. Lehr stated “The United States Attorney’s Office is dedicated to ensuring justice is served for all crimes committed in the District of Nebraska and to holding defendants accountable regardless of the number of years it takes. Jeffery Sikes’ serious crimes perpetrated against numerous Nebraska citizens and businesses was not forgotten and today’s sentence is a reflection of the dedication and hard work of all those involved with this case both before and after Sikes fled in 2018.”
"Jeffrey S. Sikes' fraudulent schemes had devastating financial consequences for his Nebraska victims," said FBI Omaha Special Agent in Charge Eugene Kowel. "His attempt to avoid facing the consequences of his crimes was futile. No matter how long it takes, the FBI is dedicated to working with our federal, state, and local law enforcement partners to bring criminals to justice."
This case was investigated by the Federal Bureau of Investigation.
City of Atlanta’s Former Chief Financial Officer Sentenced to Prison for Federal Program Theft and Tax ObstructionRead the Press Release
The City of Atlanta’s former chief financial officer (CFO) was sentenced today to 36 months in prison, three years of supervised release, and ordered to pay restitution in the amount of $177,197.48 and a fine of $10,000 for abusing his position to steal public money and obstruct the IRS.
According to court documents, from 2011 to 2018, Jimmie Anthony “Jim” Beard, 60, of Fort Lauderdale, Florida, oversaw the City of Atlanta’s Department of Finance, in which his primary responsibility was to manage the city’s financial condition. At least as early as 2015, Beard devised and executed a scheme to use his authority as CFO to obtain money and property from Atlanta for his own use, including to pay for thousands of dollars in personal travel expenses for himself, his family, and his travel companions, and to buy and possess restricted machine guns.
Further, while CFO, Beard submitted years of fraudulent tax returns in which he claimed personal business expenses to lower what he owed in taxes. During a 2015 audit of one of those returns, Beard lied to the IRS and obstructed auditors by submitting receipts for transactions that were actually paid by the City of Atlanta in connection with Beard’s official duties. The investigation later revealed that Beard had no personal business, and years of tax deductions were based on a lie.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ryan Buchanan for the Northern District of Georgia; Executive Director Michael Nordwall of the FBI’s Criminal, Cyber, Response, and Services Branch; Special Agent in Charge Keri Farley of the FBI Atlanta Field Office; Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office; and Assistant Special Agent in Charge Alicia D. Jones of ATF Atlanta Field Division made the announcement.
The FBI, IRS-CI, and ATF investigated the case.
Trial Attorney Trevor Wilmot of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Garrett Bradford, Tiffany Johnson, and former Assistant U.S. Attorney Jeffrey Davis for the Northern District of Georgia prosecuted the case.
California Doctor Sentenced for Health Care Fraud SchemeRead the Press Release
A California man was sentenced today to 37 months in prison for his role in a $2.8 million fraud scheme in which Medicare was billed for hospice services that the patients did not need.
According to court documents and evidence presented at trial, John Thropay, M.D., 75, of Arcadia, was the medical director of multiple hospice companies, including Blue Sky Hospice Inc., located in Van Nuys, California. From October 2014 to March 2016, Thropay fraudulently certified Medicare patients of Blue Sky Hospice as having terminal illnesses that the patients did not have so that the company could bill Medicare for hospice services. In 2015, Thropay was listed as attending provider for more hospice claims paid by Medicare than any other provider in the nation.
Thropay was convicted at trial in the Central District of California of one count of conspiracy to commit health care fraud and four counts of health care fraud on Feb. 15.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, U.S. Attorney E. Martin Estrada for the Central District of California, Acting Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office and Special Agent in Charge Timothy DeFrancesca of the Department of Health and Human Services, Office of Inspector General (HHS-OIG)'s Los Angeles Regional Office made the announcement.
The FBI and HHS-OIG investigated the case.
Assistant Deputy Chief Niall M. O’Donnell and Trial Attorney Eric C. Schmale of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
CEO of Publicly Traded Company Arrested in Securities Fraud SchemeRead the Press Release
The chief executive officer of Minerco Inc. (stock ticker MINE) was arrested last week on charges of securities fraud related to a scheme to defraud investors in Minerco.
According to court documents, between about October 2019 and June 2021, Julius Jenge, 54, allegedly defrauded investors in the publicly traded securities of Minerco by, among other things, working together with his co-schemer to take control of Minerco in late 2019; causing the issuance of one billion Minerco shares to a nominee shareholder; and causing positive press releases about Minerco to be issued to the public, at least some of which contained materially false and misleading information, in an effort to artificially increase the share price of Minerco. Beginning in or around January 2020, Minerco purported publicly to be in the business of developing, marketing, and distributing psilocybin mushrooms, also known as magic mushrooms or psychedelic mushrooms.
Jenge allegedly concealed the involvement in Minerco of a co-schemer who had a criminal history and who controlled all aspects of Minerco’s operations. Among other things, Jenge allegedly failed to disclose his co-schemer’s involvement with Minerco in public filings, although he was required to do so. In addition, as part of the securities fraud scheme, and during an investor video conference, Jenge allegedly falsely stated that he had earned an MBA in marketing and a BA in accounting.
Minerco’s stock price and trading volume increased during the period of the alleged scheme, as investors purchased Minerco stock during this period.
Jenge was arrested on Aug. 22 at Ronald Reagan Washington National Airport, where he was booked on a flight to Tanzania.
Jenge is charged with one count of securities fraud. If convicted, Jenge faces up to 20 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, Inspector General Deborah Jeffrey of the U.S. Securities and Exchange Commission Office of Inspector General (SEC-OIG), and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.
The SEC-OIG and USPIS are investigating the case.
Trial Attorney Kyle Crawford of the Criminal Division’s Fraud Section is prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. You are also encouraged to visit our webpage for this case at www.justice.gov/criminal/criminal-vns/case/united-states-v-julius-makiri-jenge.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Austal USA LLC Agrees to Settle False Claims Act Allegations Involving Navy ShipsRead the Press Release
Austal USA LLC (Austal), a Mobile, Alabama, based company, has agreed to pay $811,259 to resolve allegations that it violated the False Claims Act by knowingly supplying valves that did not meet military specifications.
Austal manufactures numerous ships for the United States, including the Independence Class Littoral Combat Ship (LCS). The United States' settlement alleges that, under a 2011 Navy contract, Austal invoiced for military grade high performance butterfly valves and triple offset butterfly valves it installed on five LCS hulls when it knew the valves had not met the testing requirements to be deemed military grade.
“It is essential to the safety and operational readiness of our Navy fleet that contractors comply with applicable military specifications,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “We will continue to hold accountable those who knowingly supply equipment to the U.S. military that fails to meet contract specifications.”
“We cannot and will not tolerate companies who cut corners and misrepresent the products they provide to our military,” said U.S. Attorney Todd W. Gee for the Southern District of Mississippi. “This office is committed to protecting taxpayer dollars and will pursue fraud wherever we find it.”
“Supplying nonconforming parts to the Department of Defense (DoD) compromises military systems and potentially endangers the lives of U.S servicemembers,” said Special Agent in Charge Darrin K. Jones of DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and our law enforcement partners are fully committed to ensure the safety of our military personnel and protecting the integrity of the DoD supply chain.”
“Product substitution risks degrading warfighter capability and wastes U.S. taxpayer dollars,” said Special Agent in Charge Greg Gross of the Navy Criminal Investigative Service (NCIS) Economic Crimes Field Office. “I want to thank our investigative partners for their collaboration in working with NCIS to protect the integrity of the Department of the Navy procurement process.”
DCIS, NCIS and the Defense Contract Audit Agency's Office of Investigative Support investigated the case
Senior Trial Counsel Art J. Coulter of the Civil Division's Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Deidre Lamppin Colson for the Southern District of Mississippi handled the case.
The claims resolved by the settlements are allegations only. There has been no determination of liability.
SettlementThe Office of the Pardon Attorney Releases Spanish Language Commutation ApplicationRead the Press Release
The Office of the Pardon Attorney (Pardon) released a Spanish-language version of its application for commutation of sentence. The Spanish-language application can be used to request that the President commute the sentence of an individual who is incarcerated. This application follows the launches of the improved pardon application in June 2024, and the English-language commutation application in November 2023.
In 2023 and 2024, Pardon revised all its clemency forms to make them more accessible and user-friendly. The revisions have been part of a department-wide effort to expand access to justice by simplifying public-facing forms and documents, consistent with the recommendations described in the 2022 and 2023 Legal Aid Interagency Roundtable Reports.
“Through collaboration with the Office for Access to Justice, regular community outreach and education, and the hard work of our team, we have been able to overhaul our entire platform of clemency applications,” said Pardon Attorney Elizabeth Oyer. “The Spanish-language application will allow a large number of people within the Federal Bureau of Prisons to better access the clemency process going forward. It is a key step in our efforts to make clemency more transparent and to meet our obligation to increase language access for our applicants.”
Pardon is also working with the Federal Bureau of Prisons (FBOP) to make the Spanish-language commutation form available to Spanish speakers within FBOP facilities.
To learn more about the work and outreach of the Office of the Pardon Attorney, visit Office of the Pardon Attorney | Office of the Pardon Attorney (justice.gov).
New York Auto Repair Shop Owner Sentenced for Conspiracy to Commit Tax FraudRead the Press Release
A New York man was sentenced today to 20 months in prison for conspiring to defraud the United States by concealing income from the IRS.
According to court documents and statements made in court, Aniello Strocchia, of Maspeth, owned and operated an auto repair shop. From 2013 to 2017, Strocchia cashed, with the help of others, more than $1.3 million in checks made out to the shop at commercial check-cashing businesses, instead of depositing those funds into the shop’s bank account. Strocchia then hid the check-cashing activity from his return preparers, thereby causing his preparer to file false tax returns for himself and his business. The business returns underreported the shop’s gross receipts and ordinary business income; and his personal returns underreported his total income. In addition, Strocchia did not pay the full amount of the taxes he reported as due on his personal returns. Instead of reporting all his income and paying all the taxes he owed, Strocchia spent money on luxury items, including a luxury car collection, a second home and approximately $500,000 on extensive home renovations.
In total, Strocchia caused a loss to the IRS of $989,976.
In addition to his prison sentence, U.S. District Judge Hector Gonzalez for the Eastern District of New York ordered Strocchia to serve two years of supervised release and to pay approximately $989,976 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 Breon Peace for the Eastern District of New York made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Matthew Cofer of the Tax Division prosecuted the case.
Man Charged with Threatening Election Officials, State Judge, and Federal Law Enforcement AgentsRead the Press Release
A Colorado man will make his initial appearance at the federal courthouse in Durango, Colorado, today on federal charges in connection with a series of online threats he made toward election officials in Colorado and Arizona, a Colorado state judge, and federal law enforcement agents.
Teak Brockbank, 45, of Cortez, was arrested on Friday in Cortez.
“We allege that the defendant made detailed death threats against election officials, judges, and law enforcement officers,” said Attorney General Merrick B. Garland. “Violent threats against public servants are a danger to our democracy, and the arrest and charges announced today make clear that the Justice Department will see to it that perpetrators answer for their actions.”
“As alleged, Teak Brockbank threatened the lives of multiple public servants on social media. Among other threats, he allegedly claimed that it was ‘time’ to put two state election officials to death and that he was obligated to ‘put a bullet’ in the head of a Colorado state judge,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Public servants must be able to do their jobs without fear. The Criminal Division will continue to aggressively investigate and prosecute those who target public officials with threats of violence.”
According to court documents, between September 2021 and August 2022, Brockbank allegedly used two social media accounts to post messages threatening Colorado and Arizona election officials. For example, on Aug. 4, 2022, Brockbank allegedly posted a message referring to separate election officials in Arizona and Colorado and then stated: “Once those people start getting put to death then the rest will melt like snowflakes and turn on each other. . . . This is the only way. So those of us that have the stomach for what has to be done should prepare our minds for what we all [a]re going to do!!!!!! It is time.”
Brockbank also allegedly posted a message threatening a Colorado state judge on Oct. 2, 2021: “I could pick up my rifle and I could go put a bullet in this Mans head and send him to explain himself to our Creator right now. I would be Justified!!! Not only justified but obligated by those in my family who fought and died for the freedom in this country. . . . What can I do other than kill this man my self?”
Finally, Brockbank allegedly threatened federal law enforcement on July 20, 2022, posting: “ATF CIA FBI show up to my house I am shooting them peace’s of s*** first No Warning!! Then I will call the sheriff!!! With everything that these piece of shit agencies have done I am completely justified to just start dropping them as soon as they step on my property! justified.”
Brockbank is charged with transmitting interstate threats. If convicted, he faces a maximum penalty of five years in prison.
The FBI Denver Field Office is investigating the case.
Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cyrus Y. Chung for the District of Colorado are prosecuting the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. A year after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the Task Force has begun.
Under the leadership of Deputy Attorney General Monaco, the Task Force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found here: www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
La Oficina del Abogado de Indultos Publica la Solicitud de Conmutación de la Pena en EspañolRead the Press Release
La Oficina del Abogado de Indultos (Indultos) publicó una Versión en idioma español de su solicitud de conmutación de la pena. La solicitud en español puede usarse para pedirle al presidente la conmutación de la pena de una persona que está encarcelada. Esta solicitud sigue el lanzamiento de la solicitud de indulto mejorada en junio de 2024, y de la solicitud de conmutación de la pena en inglés en noviembre de 2023.
En 2023 y 2024, Indultos revisó todos sus formularios de clemencia para hacerlos más accesibles y fáciles de usar. Las revisiones han sido parte de un esfuerzo de todo el departamento por ampliar el acceso a la justicia mediante la simplificación de los formularios y documentos de carácter público, coherente con las recomendaciones descritas en los Informes de la Mesa Redonda Interinstitucional de Asistencia Jurídica de 2022 y 2023.
“Por medio de la colaboración con la Oficina de Acceso a la Justicia, la divulgación y la educación regulares de la comunidad, y el arduo trabajo de nuestro equipo, hemos sido capaces de revisar toda nuestra plataforma de solicitudes de clemencia”, dijo la Abogada de Indultos Elizabeth Oyer. “La solicitud en español permitirá a un gran número de personas dentro de la Oficina Federal de Prisiones acceder mejor al proceso de clemencia en el futuro. Es un paso clave en nuestros esfuerzos por hacer el indulto más transparente y cumplir con nuestra obligación de aumentar el acceso lingüístico de nuestros solicitantes”.
Indultos también está trabajando con la Oficina Federal de Prisiones (FBOP, por sus siglas en inglés) para poner el formulario de conmutación en español a disposición de los hispanohablantes en las instalaciones de la FBOP.
Para obtener más información sobre el trabajo y el alcance de la Oficina del Abogado de Indultos, visite la Oficina del Abogado de Indultos | Oficina del Abogado de Indultos (justice.gov).
Justice Department Sues Pennsylvania Man for Physically Obstructing Access to Reproductive Health Services in Violation of Freedom of Access to Clinic Entrances (FACE) ActRead the Press Release
The Justice Department filed a civil lawsuit today in the Eastern District of Pennsylvania against a man for violating the Freedom of Access to Clinic Entrances (FACE) Act. The FACE Act is a federal statute that prohibits use of force, threats of force or physical obstruction against anyone for seeking or providing reproductive health services.
The lawsuit alleges that, on Aug. 27, 2021, Matthew Connolly violated the FACE Act by intentionally creating a physical obstruction at a reproductive health clinic in Philadelphia. In particular, the complaint alleges that the defendant, after entering the clinic, barricaded himself inside one of the clinic’s bathrooms and that his actions forced the clinic to shut down for the day, requiring the intervention of the local police. As a result, at least 44 appointments had to be re-scheduled. The complaint seeks monetary penalties and injunctive relief as provided by the FACE Act.
“The defendant engaged in conduct calculated to shut down a reproductive health clinic for an entire day, forcing the evacuation of the clinic’s patients and obstructing access to reproductive health services. The FACE Act prohibits conduct intended to interfere with access to reproductive healthcare,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to enforcing the FACE Act to ensure that providers can continue to deliver legal reproductive health services and that patients can obtain them.”
For additional information about the Civil Rights Division and Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. Those interested in learning more about the FACE act can visit www.justice.gov/crt/freedom-access-clinic-entrances-places-religious-worship. Past FACE Act cases handled by the Special Litigation Section can be found at www.justice.gov/crt/special-litigation-section-cases-and-matters#face.
Justice Department Secures Agreement with Transportation Management Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department announced today that it secured a settlement agreement with BreakthroughFuel LLC (Breakthrough), a transportation management company based in Green Bay, Wisconsin, with nationwide operations. The agreement resolves the department’s determination that Breakthrough violated the Immigration and Nationality Act (INA) by discriminating against a non-U.S. citizen worker when the company withdrew its offer to work on a project based on his citizenship status.
“Employers cannot unlawfully exclude people with permission to work in the United States because of their citizenship status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department is committed to ensuring that employers do not unlawfully deny workers equal treatment in the workplace.”
After opening an investigation based on a worker’s complaint, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) concluded that Breakthrough, which used a third-party staffing agency to fill a role on Breakthrough’s project, asked the agency to withdraw a job offer to a worker when Breakthrough learned he was not a U.S. citizen. IER also concluded that Breakthrough did not have any legal justification for withdrawing the offer.
Under the terms of the settlement, Breakthrough will pay a civil penalty to the United States, train its employees on the INA’s anti-discrimination requirements, revise its employment policies and processes and be subject to monitoring by the department. During the course of IER’s investigation, Breakthrough and the staffing agency provided the worker with monetary compensation to address his claim of lost wages.
IER is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee, unfair documentary practices and retaliation and intimidation.
Find more information on how employers can avoid discrimination in recruiting and hiring on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify) or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected]; or visit IER’s English and Spanish websites. Sign up for email updates from IER.
El Departamento de Justicia llega a un acuerdo con una compañía de gestión de transporte que resuelve acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con BreakthroughFuel, LLC (Breakthrough), una compañía de gestión de transporte con sede en Green Bay, Wisconsin, con operaciones a nivel nacional. El acuerdo resuelve la determinación del Departamento que Breakthrough infringió la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a un trabajador no ciudadano de los EE. UU. cuando la empresa retiró su oferta de trabajar en un proyecto en función de su estatus de ciudadanía.
«Los empleadores no pueden excluir ilegalmente a personas con permiso para trabajar en los Estados Unidos debido a su estatus de ciudadanía», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento se compromete a garantizar que los empleadores no nieguen ilegalmente a los trabajadores el trato igualitario en el lugar de trabajo».
Después de abrir una investigación basada en la queja de un trabajador, la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), de la División de Derechos Civiles, concluyó que Breakthrough, que utilizó una agencia externa de dotación de personal para cubrir un puesto en el proyecto de Breakthrough, pidió a la agencia que retirara una oferta de trabajo a un trabajador cuando Breakthrough se enteró de que no era un ciudadano de los EE. UU. Por otra parte, la IER también concluyó que Breakthrough no tenía ninguna justificación legal para retirar la oferta.
Conforme los términos del acuerdo, Breakthrough pagará una sanción civil a los Estados Unidos, capacitará a sus empleados en cuanto a los requisitos antidiscriminatorios de la INA, revisará sus políticas de empleo y se someterá a supervisión por parte del Departamento. Durante el transcurso de la investigación de IER, Breakthrough y la agencia de dotación de personal proporcionaron al trabajador una compensación monetaria para abordar su reclamación de salarios perdidos.
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.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminación en la contratación y el reclutamiento en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); 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.
Colorado Dentist Charged with Tax EvasionRead the Press Release
A federal grand jury in Denver returned an indictment unsealed on Friday charging a Colorado dentist with six counts of tax evasion for his use of an illegal tax shelter.
According to the indictment, since 2014, Ryan Ulibarri owned and operated Ulibarri Family Dentistry in Fort Collins. In 2016, Ulibarri allegedly purchased a tax shelter for $50,000. From 2017 through 2022, Ulibarri allegedly used this tax shelter to conceal from the IRS over $3.5 million in income he earned.
To effectuate the tax shelter, Ulibarri allegedly signed trust instruments purporting to create three trusts and a private foundation and opened bank accounts in the name of each entity. He also allegedly re-structured his dental practice so that the majority of it was purportedly owned by one of the trusts. Ulibarri allegedly transferred nearly all the funds he earned from his dental practice to the bank accounts for the trusts and foundation he created. He allegedly used those funds to pay personal expenses, such as the mortgage on his home and his credit card bills. Finally, he allegedly filed false tax returns for himself and the trusts that assigned the income he earned and controlled from his practice to the trusts.
In total, Ulibarri is alleged to have caused a tax loss to the IRS of over $1 million.
If convicted, Ulibarri faces a maximum penalty of five years in prison for each count of tax evasion. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Amanda R. Scott and Lauren K. Pope and Senior Litigation Counsel Corey J. Smith of the Tax Division 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.
Ulibarri Indictment.pdfArmy Soldier Arrested for Using AI to Generate Child PornographyRead the Press Release
An Army soldier stationed at Joint Base Elmendorf-Richardson in Anchorage, Alaska, was arrested last week on criminal charges related to his alleged transportation, receipt and possession of files depicting child sexual abuse, and use of AI to generate sexually explicit images of children.
“The misuse of cutting-edge generative AI is accelerating the proliferation of dangerous content, including child sexual abuse material — so the Department of Justice is accelerating its enforcement efforts,” said Deputy Attorney General Lisa Monaco. “As alleged, the defendant used AI tools to morph images of real kids into horrific child sexual abuse material. Criminals considering the use of AI to perpetuate their crimes should stop and think twice — because the Department of Justice is prosecuting AI-enabled criminal conduct to the fullest extent of the law and will seek increased sentences wherever warranted.”
“As alleged, Seth Herrera possessed thousands of images depicting the violent sexual abuse of children, including infants. He also allegedly used AI to create images depicting the sexual exploitation of children he knew,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today’s announcement should serve as yet another warning that the Criminal Division will aggressively pursue those who possess or produce child sexual abuse material, including where the images were generated through AI.”
According to court documents, Seth Herrera, 34, allegedly transported, received and possessed files depicting child sexual abuse. Herrera also allegedly used online AI chatbots to generate realistic child sexual abuse materials (CSAM) depicting minors known to him.
“Technology may change, but our commitment to protecting children will not,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “We will aggressively pursue those who produce and traffic in child sexual abuse material (CSAM), no matter how that material was created. Put simply, CSAM generated by AI is still CSAM, and those who sexually exploit children, through whatever technological means, will be held accountable by our office in conjunction with our law enforcement partners, for justice and the safety of our children.”
“This investigation and indictment are a testament to the dedication of the men and women of Homeland Security Investigations to find and bring to justice those who exploit our nation’s children,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “Absolutely no child should suffer these travesties, and no person should feel immune from detection and prosecution for these crimes by HSI and its partners in law enforcement.”
“The charges against Herrera, a U.S. military soldier, for trafficking and generating child sexual abuse materials using artificial intelligence represent a profound violation of trust as well as preview of the challenges law enforcement continues to face in this evolving threat to our children” said Special Agent in Charge Robert Hammer of HSI Pacific Northwest Division. “This appalling misconduct undermines Herrera’s commitment to defending both our nation and its most vulnerable members.”
Herrera is charged with one count of transportation of child pornography, one count of receipt of child pornography, and one count of possession of child pornography. He will make his initial court appearance on Aug. 27 before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska. If convicted, he faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI and Army Criminal Investigation Division are investigating the case.
Trial Attorney Rachel L. Rothberg of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Mac Caille Petursson for the District of Alaska are prosecuting the case.
If anyone has information concerning Herrera’s alleged actions or may have encountered someone in person or online using the name Seth Herrera, please contact the HSI tip line at 1-877-447-4847.
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 Sues RealPage for Algorithmic Pricing Scheme that Harms Millions of American RentersRead the Press Release
The Justice Department, together with the Attorneys General of North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, Tennessee, and Washington, filed a civil antitrust lawsuit today against RealPage Inc. for its unlawful scheme to decrease competition among landlords in apartment pricing and to monopolize the market for commercial revenue management software that landlords use to price apartments. RealPage’s alleged conduct deprives renters of the benefits of competition on apartment leasing terms and harms millions of Americans. The lawsuit was filed today in the U.S. District Court for the Middle District of North Carolina and alleges that RealPage violated Sections 1 and 2 of the Sherman Act.
The complaint alleges that RealPage contracts with competing landlords who agree to share with RealPage nonpublic, competitively sensitive information about their apartment rental rates and other lease terms to train and run RealPage’s algorithmic pricing software. This software then generates recommendations, including on apartment rental pricing and other terms, for participating landlords based on their and their rivals’ competitively sensitive information. The complaint further alleges that in a free market, these landlords would otherwise be competing independently to attract renters based on pricing, discounts, concessions, lease terms, and other dimensions of apartment leasing. RealPage also uses this scheme and its substantial data trove to maintain a monopoly in the market for commercial revenue management software. The complaint seeks to end RealPage’s illegal conduct and restore competition for the benefit of renters in states across the country.
“Americans should not have to pay more in rent because a company has found a new way to scheme with landlords to break the law,” said Attorney General Merrick B. Garland. “We allege that RealPage’s pricing algorithm enables landlords to share confidential, competitively sensitive information and align their rents. Using software as the sharing mechanism does not immunize this scheme from Sherman Act liability, and the Justice Department will continue to aggressively enforce the antitrust laws and protect the American people from those who violate them.”
“Today’s complaint against RealPage illustrates our corporate enforcement strategy in action. We identify the most serious wrongdoers, whether individuals or companies, and focus our full energy on holding them accountable,” said Deputy Attorney General Lisa Monaco. “By feeding sensitive data into a sophisticated algorithm powered by artificial intelligence, RealPage has found a modern way to violate a century-old law through systematic coordination of rental housing prices — undermining competition and fairness for consumers in the process. Training a machine to break the law is still breaking the law. Today’s action makes clear that we will use all our legal tools to ensure accountability for technology-fueled anticompetitive conduct.”
“RealPage’s egregious, anticompetitive conduct allows landlords to undermine fair pricing and limit housing options while stifling necessary competition,” said Acting Associate Attorney General Benjamin C. Mizer. “The Department remains committed to rooting out illegal schemes and practices aimed at empowering corporate interests at the expense of consumers.”
“As Americans struggle to afford housing, RealPage is making it easier for landlords to coordinate to increase rents,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Today, we filed an antitrust suit against RealPage to make housing more affordable for millions of people across the country. Competition – not RealPage – should determine what Americans pay to rent their homes.”
The complaint cites internal documents and sworn testimony from RealPage and commercial landlords that make plain RealPage’s and landlords’ objective to maximize rental pricing and profitability at the expense of renters. For example:
- RealPage acknowledged that its software is aimed at maximizing prices for landlords, referring to its products as “driving every possible opportunity to increase price,” “avoid[ing] the race to the bottom in down markets,” and “a rising tide raises all ships.”
- A RealPage executive observed that its products help landlords avoid competing on the merits, noting that “there is greater good in everybody succeeding versus essentially trying to compete against one another in a way that actually keeps the entire industry down.”
- A RealPage executive explained to a landlord that using competitor data can help identify situations where the landlord “may have a $50 increase instead of a $10 increase for the day.”
- Another landlord commented about RealPage’s product, “I always liked this product because your algorithm uses proprietary data from other subscribers to suggest rents and term. That’s classic price fixing…”
The complaint alleges that RealPage’s agreements and conduct harm the competitive process in local rental markets for multi-family dwellings across the United States. Armed with competing landlords’ data, RealPage also encourages loyalty to the algorithm’s recommendations through, among other measures, “auto accept” functionality and pricing advisors who monitor landlords’ compliance. As a result, RealPage’s software tends to maximize price increases, minimize price decreases, and maximize landlords’ pricing power. RealPage also trained landlords to limit concessions (e.g., free month(s) of rent) and other discounts to renters. The complaint also cites internal documents from RealPage and landlords touting the fact that landlords have responded by reducing renter concessions.
The complaint separately alleges that RealPage has unlawfully maintained its monopoly over commercial revenue management software for multi-family dwellings in the United States, in which RealPage commands approximately 80% market share. Landlords agree to share their competitively sensitive data with RealPage in return for pricing recommendations and decisions that are the result of combining and analyzing competitors’ sensitive data. This creates a self-reinforcing feedback loop that strengthens RealPage’s grip on the market and makes it harder for honest businesses to compete on the merits.
RealPage Inc., is a property management software company headquartered in Richardson, Texas.
Iowa Man Charged with Distributing Videos Depicting Monkey Torture and MutilationRead the Press Release
An indictment was unsealed today in which an individual was charged based on his involvement with online groups dedicated to creating and distributing videos depicting acts of extreme violence and sexual abuse against monkeys.
Philip Colt Moss, of Iowa, was charged with conspiracy to create and distribute so-called “animal crush videos,” and with distributing animal crush videos. According to court documents, in March and April 2023, Moss allegedly conspired with Nicholas Dryden and Giancarlo Morelli to create and distribute videos depicting acts of sadistic violence against baby, adolescent and adult monkeys. Dryden and Morelli were previously indicted and are awaiting trial.
The videos alleged to have been created as part of the conspiracy included depictions of monkeys having their genitals burned, having their genitals cut with scissors, being sodomized with a wooden skewer and being sodomized with a spoon.
If convicted, Moss faces a maximum penalty of five years in prison for the conspiracy charge and a maximum penalty of seven years in prison for the charges related to the creation and distribution of animal crush videos. 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 Kenneth L. Parker for the Southern District of Ohio made the announcement.
The U.S. Fish and Wildlife Service and FBI investigated the case.
Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Tim Oakley for the Southern 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.
Two Former Presidents of Boilermakers International Union Among Seven Indicted for $20M Embezzlement SchemeRead the Press Release
A federal grand jury in Kansas returned an indictment yesterday charging seven defendants, including five current and former high-level officers of the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmith, Forgers and Helpers (Boilermakers Union) for their alleged roles in a 15-year, $20 million embezzlement scheme.
The defendants are charged with conspiracy to commit offenses under the Racketeer Influenced and Corrupt Organizations (RICO) Act, as well as other charges including embezzlement, health care fraud, wire fraud, and theft in connection with health care and retirement plans.
“As alleged in the indictment, these defendants, including two former presidents of the Boilermakers Union, enriched themselves by spending millions of dollars in union funds for their own benefit, including for salary and benefits for no-show jobs, tuition, rent, luxury international travel, meals, vacation payouts, and unauthorized loans,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “This indictment marks an important step in restoring financial security to the Boilermakers Union and control of the union’s future to its membership. The department is committed to protecting union members from officials who abuse their positions of authority for their own personal ends.”
The defendants are former union president Newton Jones, 71, of Chapel Hill, North Carolina; former secretary-treasurer William Creeden, 76, of Kearney, Missouri; former president Truman “Warren” Fairley, 59, of Chapel Hill; current secretary-treasurer Kathy Stapp, 53, of Shawnee, Kansas; former vice president Lawrence McManamon, 76, of Rocky River, Ohio; Kateryna Jones, 32, of Chapel Hill; and Cullen Jones 35, of Chapel Hill.
“Union members pay their dues believing union leaders will use the money in support of the organization’s mission to advocate for and protect employment rights,” said U.S. Attorney Kate E. Brubacher for the District of Kansas. “The Department of Justice is deeply concerned whenever there are accusations of fraud and misappropriation of union funds.”
“The employees believed the Union executives would promote and protect their best interests. Instead, they allegedly utilized their positions for personal and financial gain,” said Special Agent in Charge Stephen A. Cyrus of the FBI Kansas City Field Office. “By allegedly unlawfully misappropriating Union funds, the defendants betrayed their members’ trust and confidence. Anyone who unlawfully profits at the expense of others will be held accountable.”
“We would like to thank our fellow law enforcement partners, the Criminal Division, and the United States Attorney’s Office for working collaboratively to bring change within the Boilermakers International Union,” said District Director Christiane Abendroth of the Department of Labor’s Office of Labor-Management Standards (OLMS). “Today’s indictment of seven defendants, including five current and former high-level officers, is a direct result of OLMS’s audit findings and a multi-agency criminal investigation. We look forward to obtaining justice for the rank-and-file union members by removing officers who allegedly treated the union as their personal piggy bank.”
Over the course of 15 years, the defendants, led by Newton Jones and William Creeden, allegedly engaged in widespread embezzlement of the funds of the Boilermakers Union including:
- Over $5 million in unnecessary luxury international travel;
- Over $2 million in salary and benefits to Kateryna Jones and Cullen Jones for no-show jobs, at which they were not required to work, including payment of two years of salary to Kateryna Jones for a period when she resided in Ukraine and was dating Newton Jones;
- Hundreds of thousands of dollars in tuition, rent, and relocation expenses for members of the family of Newton Jones;
- Millions of dollars in cash payments relating to fraudulently claimed vacation time;
- Hundreds of fraudulent restaurant charges by Newton Jones and Kateryna Jones in their hometown;
- Funds wrongly expended to engage in email surveillance of Union employees to defend Newton Jones and McManamon from internal union charges; and
- $7 million in loans from the Boilermakers Union MORE Fund executed by Newton Jones and Creeden to the Bank of Labor, which were not authorized under the terms of the Boilermakers Union constitution or its conflict-of-interest policy.
The indictment also charges Newton Jones and Creeden with wire fraud relating to their alleged demand and acceptance of no-show employment with the Bank of Labor for which they were paid more than $3.4 million each in salary, benefit contributions, and other paid benefits. The indictment additionally seeks forfeiture of $20 million.
If convicted, the defendants face a maximum penalty of 20 years in prison on the RICO conspiracy count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Kansas City Field Office and the Department of Labor are investigating the case.
Trial Attorney Vincent Falvo of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorneys Faiza Alhambra and Jabari Wamble for the District of Kansas 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.