District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Louisiana Man Sentenced to 10 Years in Prison for Operating Coffee Vending Business Fraud in FloridaRead the Press Release
WASHINGTON – Manuel Rodriguez, 47, of Lafayette, La., was sentenced today to 120 months in prison and three years supervised release for committing fraud in connection with a coffee machine business opportunity scheme, the Justice Department and the U.S. Postal Inspection Service announced. Additionally, he was ordered to pay more than $1.1 million in restitution. On Sept. 28, 2011, a federal jury in Fort Lauderdale, Fla., found Rodriguez guilty after a two-week trial. The jury found Rodriguez guilty on all seven counts submitted to it, one count of conspiracy and six counts of wire fraud.
At trial, witnesses testified that Rodriguez engaged in his scheme through the operation of three Florida companies: M & D Gourmet Coffee Inc. of Boca Raton, Fla.; Coffee Heaven LLC of Deerfield Beach, Fla.; and Divino Trio Coffee & Vending Company of Ft. Lauderdale. The jury heard testimony that the defendant and a co-conspirator made similar misrepresentations to consumers in connection with each of these companies with the same effect – a loss of tens of thousands of dollars per consumer.
Specifically, victims at trial testified that the defendant and his businesses offered a business package that included coffee machines, locations in which to place those machines, and on-going support and assistance in the operation of a coffee machine business. Witnesses explained that they lost amounts from $15,000 to $192,000 in the scheme. They testified that the defendant told them that their machines would sell enough coffee to recoup their investment in 12 to 18 months, and that this representation was false.
Victims also told the jury that while the defendant promised that the coffee machines would be placed in high-quality locations that would generate numerous sales, what was delivered were poor locations which generated few, if any, sales. Some victims testified that they received no machines at all.
“The court’s sentence should give fair warning to fraudsters who pad their pockets by imposing financial hardship on innocent victims,” said Tony West, Assistant Attorney General for the Justice Department’s Civil Division. “If you exploit consumers, we will be aggressive in our efforts to prosecute and hold you accountable.”
“We are committed to vigorously prosecuting financial fraud,” said Wifredo Ferrer, U.S. Attorney for the Southern District of Florida. “Fraudulent telemarketers must realize that they will be pursued and brought to justice.”
“The Postal Inspection Service has investigated scores of individuals and dozens of companies like the ones involved here,” said U.S. Postal Inspector in Charge, Henry Gutierrez, based in Miami. “Those investigations have led to felony convictions and significant terms of incarceration. The American public must remain vigilant to avoid sophisticated schemes that try to take advantage of our natural desire to prosper by owning businesses like this one.”
Assistant Attorney General West commended the investigative efforts of the U.S. Postal Inspection Service and the Federal Trade Commission. The case was prosecuted by attorneys John Claud and Matthew Ebert of the Justice Department’s Consumer Protection Branch.
Client of UBS and Swiss Cantonal Bank Indicted for Conspiracy to Defraud the IRSRead the Press Release
WASHINGTON – A federal grand jury in Fort Lauderdale, Fla., has returned an indictment charging Amir Zavieh of San Francisco with conspiring to defraud the Internal Revenue Service (IRS), the Justice Department and IRS announced today.
According to the indictment, Zavieh, a naturalized U.S. citizen, opened a secret Swiss bank account with UBS AG in Zurich, Switzerland, in March 1989. In 2000, Zavieh executed a document that directed UBS not to disclose his identity and ownership of the account to the IRS. Zavieh concealed the secret account at UBS by placing his domestic assets in the name of a nominee and failing to file income tax returns. One year in which Zavieh did file an income tax return, he failed to report on the return either the secret Swiss account or the income generated by that account.
The indictment further alleges that Zavieh closed his secret UBS account in 2009 after his former UBS banker, Renzo Gadola, advised Zavieh that Martin Lack, Gadola’s former colleague at UBS and then-business partner, could transfer the contents on the UBS account to a new account to be opened at a Swiss cantonal bank. Further, Gadola advised Zavieh to transfer only Swiss Francs from UBS to the cantonal bank in order to avoid detection.
The indictment also alleges that Gadola and Lack managed Zavieh’s secret account at the Swiss cantonal bank until Lack demanded that Zavieh provide him with a Form W-9 which would document that Zavieh was the owner of the account and subject to U.S. taxation. Zavieh refused and Lack transferred management of the secret Swiss account to another Swiss asset manager, who would not require Zavieh to provide a Form W-9.
According to the indictment, Zavieh fabricated a false story about the ownership of the assets in the secret Swiss accounts at UBS and Cantonal Bank in order to conceal the defendant’s ownership and control of assets and income from the IRS. He also made false statements to federal law enforcement agents regarding his ownership and control of the secret Swiss accounts.
On Dec. 22, 2010, Renzo Gadola, a citizen and resident of Switzerland, pleaded guilty to a one-count information charging him with conspiring to defraud the IRS. He has been cooperating with the Justice Department and IRS in providing information about his former U.S. clients who evaded their income taxes and his former Swiss colleagues who assisted those U.S. taxpayers. On Nov. 18, 2011, Senior District Judge James L. King sentenced Gadola to 60 months probation and ordered him to return to the United States at least once each year to assist the Justice Department in its ongoing investigations of illegal cross border banking.
On Aug. 2, 2011, a federal grand jury in Fort Lauderdale, returned an indictment charging Lack, a citizen and resident of Switzerland, with conspiring to defraud the IRS. According to that indictment, Lack assisted numerous U.S. customers to conceal their assets and income through the use of secret Swiss bank accounts. To date, Lack has not been arrested and remains at large.
As alleged in the indictment, U.S. citizens have an obligation to report to the IRS on Schedule B of their U.S. Individual Income Tax Return, Form 1040, whether they had a financial interest in, or signature authority over, a financial account in a foreign county in a particular year by checking “Yes” or “No” in the appropriate box and identifying the country where the account was maintained. They further have an obligation to report all income earned from foreign financial accounts on the tax return and to pay the taxes due on that income. Separately, U.S. citizens with a financial interest in, or signatory authority over, a foreign financial account worth more than $10,000 in a particular year, must also file an Foreign Bank and Financial Accounts form with the Treasury disclosing such an account by June 30 of the following year.
The conspiracy count carries a maximum penalty of five years in prison and a $250,000 fine.
This case is being prosecuted by Trial Attorneys Mark F. Daly and Michelle M. Petersen and Senior Litigation Counsel Kevin Downing of the Justice Department’s Tax Division, and Assistant U.S. Attorney Bertha Mitrani of the U.S. Attorney’s Office for the Southern District of Florida and was investigated with the assistance of the IRS.
An indictment is only an allegation of criminal conduct and is not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
Attorney General Holder Announces Financial Fraud Enforcement Task Force Executive DirectorRead the Press Release
U.S. Attorney General Eric Holder today announced the appointment of Michael J. Bresnick as the new executive director of President Barack Obama’s Financial Fraud Enforcement Task Force.
“I am pleased that Michael will bring his wealth of experience and energy to this critical mission,” said Attorney General Holder. “The task force is a powerful weapon in the Department of Justice’s ongoing battle against financial fraud like mortgage scams, Ponzi schemes and other predatory behaviors that victimize our families, friends and neighbors and wreak havoc on our financial system.”
Bresnick spent the last eight years investigating and prosecuting complex fraud cases at the federal level. Bresnick began his career as a federal prosecutor in 2003 as an assistant U.S. attorney in Philadelphia, where he prosecuted a wide variety of criminal cases, including financial fraud, health care fraud, public corruption and Racketeer Influenced and Corrupt Organization Act (RICO) offenses.
Most recently, Bresnick worked in the Criminal Division of the U.S. Department of Justice as an assistant chief in the Fraud Section. In that capacity, Bresnick supervised a team of attorneys in the Financial Institution and Public Sector Unit, which investigates and prosecutes a broad range of financial crimes, including mortgage fraud and bank fraud.
“I am excited about this opportunity and am looking forward to working with Attorney General Holder, Deputy Attorney General Cole and the task force members to continue the important business of combating financial fraud on behalf of the American people,” said Bresnick. “We will build on the accomplishments of the past two years and work proactively with our federal, state and local partners to identify new financial fraud schemes that hurt consumers and threaten the safety and soundness of our financial institutions.”
Before he began his career as a federal prosecutor, Bresnick worked for five years in the New York office of the law firm Weil, Gotshal & Manges LLP where his practice focused on white collar crime and business litigation.
Bresnick clerked for Judge Conrad K. Cyr of the U.S. Court of Appeals for the First Circuit as well as Judge Morton A. Brody of the U.S. District Court for the District of Maine. He earned his law degree from the University of Maine School of Law and his bachelor’s degree from Bowdoin College.
President Obama created the Financial Fraud Enforcement Task Force by executive order on Nov. 17, 2009, to improve efforts across the government and with state and local partners in investigating and prosecuting those who helped bring about the last financial crisis as well as those who would attempt to take advantage of the efforts at economic recovery. The task force is designed to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. The task force has established financial fraud coordinators in every U.S. attorney’s office around the country to help make these broad mandates a reality on the ground.
Since its formation, task force members have made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Task force members have charged an increased number of mortgage fraud cases, trained more than 100,000 professionals responsible for awarding and overseeing Recovery Act funds and held regional summits around the country to discuss strategies, resources and initiatives as well as to meet with communities most affected by the financial crisis.
Learn more about the Financial Fraud Enforcement Task Force at www.stopfraud.gov .
Arkansas Man Pleads Guilty to Civil Rights Offenses for Involvement in the Firebombing of Interracial Couple's HomeRead the Press Release
WASHINGTON - Gary Dodson, 32, of Waldron, Ark., pleaded guilty today in U.S. District Court in Little Rock, Ark., to one count of civil rights conspiracy, one count of interference with housing rights due to race and one count of possession of an unregistered firearm/destructive device for his involvement in the Jan. 14, 2011, racially motivated firebombing of the home of an interracial couple in Hardy, Ark.
Dodson, along with Jason Barnwell, 37, of Evening Shade, Ark.; Jake Murphy, 19, of Waldron; Dustin Hammond, 20, of Hardy, Ark.; and Wendy Treybig, 31, of Evening Shade, were indicted in April by a federal grand jury on civil rights charges and other federal charges stemming from their participation in the racially motivated firebombing and their attempts to obstruct a federal investigation.
During the plea proceedings, Dodson admitted that on the night of Jan. 14, 2011, while at a party at Barnwell’s house in Evening Shade, he, Murphy, Hammond and Barnwell devised a plan to firebomb the victims’ house. Dodson then drove all four men from Barnwell’s residence to the victims’ house in Hardy. When they arrived, Barnwell, Murphy and Hammond constructed three Molotov cocktails and threw them at the house. They damaged the victims’ house, however, the victims were not injured.
“The victims’ home was attacked and their safety threatened because of their race. Such violence and intimidation has no place in our society,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute individuals who commit such atrocious acts of hate.”
“Today’s plea begins the final chapter in a terrible story begun less than a year ago on the night of Jan. 14, 2011, in a small Northeast Arkansas community,” said Christopher R. Thyer, U.S. Attorney for the Eastern District of Arkansas. “Racially motivated violence, more than any other type, tears at the very fabric of what makes America and Arkansas great. We should be celebrating our diversity rather than committing acts of violence because of it. When it occurs, my office will vigorously prosecute it.”
Dodson faces a maximum penalty of 30 years in prison. Sentencing has been set for April 6, 2012. Barnwell, Murphy, Hammond and Treybig have already pleaded guilty for their involvement in this matter.
This case was investigated by the Little Rock Office of the FBI and the Little Rock Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Arkansas State Police, the Hardy and Waldron Police Departments, and the Scott and Sharp County Sheriff’s Offices. It is being prosecuted by Assistant U.S. Attorney John Ray White of the Eastern District of Arkansas, and Trial Attorneys Cindy Chung and Henry Leventis of the U.S. Department of Justice Civil Rights Division.
Thirteen Alleged Latin Kings Members in North Carolina Indicted on Federal Racketeering ChargesRead the Press Release
WASHINGTON - Thirteen alleged members of the Almighty Latin King and Queen Nation (Latin Kings) have been indicted by a federal grand jury in Greensboro, N.C., for allegedly conspiring to participate in a racketeering enterprise, announced Assistant Attorney General for the Criminal Division Lanny A. Breuer and U.S. Attorney for the Middle District of North Carolina Ripley Rand.
According to the indictment, the defendants are members of the Latin Kings, a violent street gang with members operating in North Carolina since at least 2005. The traditional power centers of the Latin Kings are the Chicago and New York metropolitan areas, with thousands of members scattered across the United States and overseas.
“The indictment unsealed today alleges a pattern of violent criminal activity by Latin Kings members in North Carolina,” said Assistant Attorney General Breuer. “Criminal street gangs like the Latin Kings endanger communities across the country. We are working hard with our federal, state and local law enforcement partners to bring gang members and their associates to justice.”
“We have no tolerance for violent crime in North Carolina,” said U.S. Attorney Rand. “The investigation in this case is part of a coordinated effort between federal, state and local law enforcement to combat violent street gang activity. We will continue to work together to keep our neighborhoods safe, and we will not allow violent street gangs to dictate what happens in our communities.”
“These arrests today are an outstanding example of the tireless work of the Safe Streets Task Force. The gang’s attempt to portray the Latin Kings as a public service organization did not deter the FBI and our law enforcement partners from uncovering their scheme,” said Chris Briese, the Special Agent in Charge of the FBI Charlotte Division.
According to the indictment, the Latin Kings were allegedly formed in North Carolina by Jorge Peter Cornell, aka “King Jay,” who allegedly became a member of the Latin Kings while he was residing in New York City. When Cornell moved to the Middle District of North Carolina, he allegedly formed a tribe and became the “Inca” for the entire state of North Carolina. It is alleged that, through violence, threats of violence and coercion, Cornell gained control of all of the Latin Kings tribes in North Carolina, including chapters in Greensboro, Charlotte, Durham and Raleigh.
The unsealed indictment also alleges that Cornell, in an attempt to disguise the criminal activities of the Latin Kings and frustrate law enforcement attempts to investigate and prosecute the gang’s members, orchestrated a public relations campaign to falsely portray the Latin Kings as a public service organization. Cornell allegedly made public statements for peace between Greensboro street gangs and regularly held media events with community leaders to publicly advocate for the dissolution of Greensboro Police Department’s gang unit during the same period of time that he allegedly plotted to murder or assault rival gang members, including other Latin Kings, and was involved in other gang-related criminal activities.
The indictment charges the following defendants with conspiracy to participate in the racketeering activities of the Latin Kings:
- Jorge Peter Cornell, 35, aka “King Jay;”
- Russell Lloyd Kilfoil, 25, aka “King Peaceful” and “Jonathan Hernandez;”
- Randolph Leif Kilfoil, 26, aka “King Paul;”
- Jason Paul Yates, 31, aka “King Squirrel;”
- Luis Alberto Rosa, 24, aka “King Speechless;”
- Wesley Anderson Williams, 19, aka “King Bam;”
- Steaphan Acencio-Vasquez, 20, aka “King Leo;”
- Marcelo Ysrael Perez, 26, aka “King Lyrix” and “King Sacrifice;”
- Samuel Isaac Velasquez, 22, aka “King Hype;”
- Charles Lawrence Moore, 26, aka “King Toasty;”
- Richard Lee Robinson, 22, aka “King Focus;”
- Irvin Vasquez, 22, aka “King Dice;”
- Carlos Coleman, 19, aka “King Spanky.”
The indictment also charges Perez with a violent crime in aid of racketeering and using a firearm during the commission of a violent crime. The indictment alleges that Latin Kings members committed a wide range of crimes in order to further their racketeering scheme, including armed robberies, kidnappings, arson and assaults.
The indictment was returned under seal on Nov. 29, 2011, and unsealed today after 12 of the defendants were arrested or placed under detainer while in custody on other charges.
Initial appearances for six defendants arrested today in North Carolina will be held in Greensboro federal court at 4 p.m. before U.S. Magistrate Judge P. Trevor Sharp. Williams was arrested in Las Vegas and will appear in federal court there.
Perez is the only defendant not in custody and the FBI Safe Streets Task Force, Guilford County, N.C., Sheriff’s Deputies and the Greensboro Police Department are searching for him. Please call the FBI’s Charlotte Field Office at 704-672-6100 or the Greensboro-Guilford County Crime Stoppers at 336-373-1000 if you have any information on the whereabouts of Perez.
The case is being prosecuted by the U.S. Attorney’s Office for the Middle District of North Carolina and the Criminal Division’s Organized Crime and Gang Section. The case is being investigated by the FBI, the Guilford County Sheriff’s Department and the Greensboro Police Department.
Each of the defendants faces a maximum sentence of life in prison. An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
St. Louis-Based KV Pharmaceutical to Pay $17 Million<br /> to Settle False Claims AllegationsRead the Press Release
WASHINGTON - KV Pharmaceutical Company, which was the St. Louis-based parent company of now-defunct Ethex Corporation, will pay $17 million to resolve False Claims Act allegations that Ethex failed to advise the Centers for Medicare and Medicaid Services (CMS) that two unapproved products did not qualify for coverage under federal health care programs, the Justice Department announced today. Ethex is alleged to have submitted false quarterly reports to the government related to a pair of drugs, Nitroglycerin Extended Release Capsules (Nitroglycerin ER) and Hyoscyamine Sulfate Extended Release Capsules (Hyoscyamine ER).
Nitroglycerin ER is a single entity coronary vasodilator containing controlled release nitroglycerin that was used for treating angina pectoris (chest pain due to lack of oxygen supply to the heart muscle). Hyoscyamine Sulfate ER is an antispasmodic medication that has been used to treat various stomach, intestinal and urinary tract disorders that involve cramps, colic or other painful muscle contractions. While the active ingredients in Nitroglycerin and Hyoscyamine Sulfate ER had been in products on the market for many years, the Food and Drug Administration (FDA) made determinations in the late 1990s that resulted in the drugs being ineligible for reimbursement by government health care programs such as Medicaid.
The United States alleges that Ethex misrepresented the regulatory status of both drugs and failed to advise CMS that these unapproved drugs did not qualify for coverage under federal health care programs. As a result, the government contends, Ethex knowingly caused false claims to be submitted for Nitroglycerin ER and Hyoscyamine Sulfate ER. Ultimately, neither drug ever received full regulatory approval for safety and effectiveness, and neither product is currently on the market.
“Today’s settlement underscores our commitment to pursuing pharmaceutical companies that allegedly provide false information to obtain taxpayer dollars for unapproved and ineffective drugs,” said Tony West, Assistant Attorney General for the Justice Department’s Civil Division.
“This False Claims Act agreement shows that the Department of Justice will not allow manufacturers to evade the drug approval process and expect the government to pay for less than effective drugs,” said Carmen Ortiz, U.S. Attorney for the District of Massachusetts.
“This settlement sends a strong message to those who seek to put the health of American patients at risk by distributing and promoting drugs which have not been approved by the FDA,” said Ilisa Bernstein, acting director of the Office of Compliance in FDA's Center for Drug Evaluation and Research.
The settlement resolves allegations against Ethex in a multi-defendant whistleblower actions captioned United States ex rel. Constance Conrad v. Ethex Corp., et al., No. 02-11738-RWZ (D. Mass.). The federal share of the settlement is $10,158,695, and the state Medicaid share of the settlement is $6,841,305. The lawsuits were brought under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private parties with knowledge of fraud to sue on behalf of the United States and share in any recovery. Under the settlement, the whistleblower will receive a total of $1,523,804 from the federal share and additional amounts from the state share.
The case was investigated by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Massachusetts, the Office of Inspector General of the Department of Health and Human Services (HHS) and the FDA.
This resolution is part of the government's emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of HHS in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover nearly $6.5 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department's total recoveries in False Claims Act cases since January 2009 are more than $8.5 billion.
Seven Charged in in Florida in $120 Million National Tax Fraud SchemeRead the Press Release
WASHINGTON – Seven individuals have been charged with participating in filing false tax returns that resulted in a $120 million tax fraud scheme, the Justice Department announced today. Penny Jones, a resident of Rigby, Idaho; Christopher Marrero of Davie, Fla.; Michael D. Beiter, Jr., formerly a resident of Coral Springs, Fla.; David Clum Jr. of Whites Creek, Tenn.; Dale Peters, a resident of San Mateo, Calif., Laura Barel, a resident of Lauderhill, Fla.; and John Michael Smith, Jr. of Hidden Hills, Calif., have been charged with participating in the scheme to file false tax returns.
Jones and Marrero appeared in federal court today in Fort Lauderdale, Fla. Both entered not guilty pleas before U.S. Magistrate Judge Lurana S. Snow. Barel had been previously charged by a criminal complaint in May 2011. Arraignments are pending for Beiter, Clum, Peters and Smith.
According to the indictment, the false return scheme was national in scope, causing the filing of tax returns for at least 180 clients from 30 different states, requesting more than $120 million worth of fraudulent tax refunds. The indictment alleges that the defendants and clients of the scheme collectively filed more than 380 tax returns, mostly from tax year 2008 but also for other tax years, reporting the amount of their personal debt obligations as both income and as federal tax withholding.
The indictment also alleges that the defendants held seminars in Florida and Tennessee in which they recruited potential clients. The indictment and other publicly filed documents allege that clients paid $750 to have defendants prepare a tax return reporting this type of “OID” income, and that clients agreed to share 10 percent of their tax refund with defendants.
Previously, in a separate case in Fayetteville, Ark., a client of the scheme, Philip Butcher, formerly of Rogers, Ark., was charged with filing false claims for tax refunds. According to the indictment in that case, Butcher filed two tax returns reporting his loans as OID income and tax withholding, claiming tax refunds totalling $1,456,696. The Internal Revenue Service (IRS) paid Butcher $672,781.
Jones was previously enjoined by a federal court from preparing tax returns.
If convicted, Jones, Beiter, Clum and Peters each face 215 years in prison, Barel faces 25 years, Marrero faces 30 years and Smith faces 75 years. All of the defendants are also subject to fines and mandatory restitution if convicted.
The announcement was made by Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida; John A. DiCicco, acting Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division; and Jose A. Gonzalez, Special Agent in Charge, IRS-Criminal Investigation (IRS-CI), Miami Office.
These cases were investigated by Special Agents of the IRS - CI. Trial attorneys Jed Silversmith and Jonathan Marx of the Tax Division, and Assistant U.S. Attorney Bertha Mitrani are prosecuting the case.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax.
Owners of Houston Health Care Company Sentenced to Prison for Medicare FraudRead the Press Release
WASHINGTON – Two owners of a Houston durable medical equipment (DME) company were each sentenced to prison today for their roles in a Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).
U.S. District Judge David Hittner in the Southern District of Texas sentenced Kemmie Houston to 63 months in prison and Sharon Beal to 51 months in prison. In addition to their prison terms, Houston and Beal were sentenced to two years of supervised release and were ordered to pay $403,704 in restitution, jointly and severally.
Beal, 48, and Houston, 43, pleaded guilty in June 2011 to one count of conspiracy to commit health care fraud.
According to court documents, Beal and Houston owned and operated STK Consultants. STK maintained a Medicare provider number to submit Medicare claims for the costs of DME and purported to provide orthotics, power wheelchairs, power wheelchair accessories and other DME to Medicare beneficiaries. According to court documents, Beal and Houston caused STK to submit claims to Medicare for DME that was medically unnecessary and/or not provided, including orthotic devices that were components of “arthritis kits.” The arthritis kit generally contained a number of devices including braces for both sides of the body and related accessories such as heat pads. In total, from August 2005 through August 2010, STK submitted approximately $851,212 in fraudulent claims to Medicare.
The sentences were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; Special Agent-In-Charge Stephen L. Morris of the FBI’s Houston Field Office; Special Agent-in-Charge Mike Fields of the Dallas Regional Office of HHS’s Office of the Inspector General (HHS-OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU).
The case was prosecuted by Trial Attorney Laura M.K. Cordova and Assistant Chief Sam S. Sheldon of the Criminal Division’s Fraud Section. The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Southern District of Texas and the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,140 defendants who collectively have falsely billed the Medicare program for more than $2.9 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
New Zealand Fishing Company Indicted for Enviromental Crimes and Obstruction of JusticeRead the Press Release
WASHINGTON – A federal grand jury in Washington, D.C., has returned a seven-count indictment charging Sanford Ltd. with violating the Act to Prevent Pollution from Ships (APPS), conspiracy and obstruction of justice, announced Assistant Attorney General Ignacia S. Moreno and United States Attorney Ronald C. Machen Jr.
Sanford Ltd. is a New Zealand based company that operates the Fishing Vessel (F/V) San Nikunau, a vessel that routinely delivers tuna to a cannery in American Samoa. The indictment describes a conspiracy where the crew of the vessel routinely discharged oily bilge waste from the vessel directly into the sea during its fishing voyages since at least 2007. Sanford Ltd. was also charged with violating the APPS for failing to accurately maintain an oil record book for the vessel and with obstruction of justice for presenting false documents and deceiving the Coast Guard during an inspection.
If convicted, Sanford Ltd. could be fined up to $500,000 per count or twice the gross gain or loss that resulted from the criminal conduct. The indictment also seeks criminal forfeiture from Sanford Ltd. of more than $24 million for proceeds derived by Sanford Ltd. as a result of the criminal conduct.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until and unless proven guilty.
This case was investigated by the U.S. Coast Guard. The case is being prosecuted by the U.S. Attorney's Office for the District of Columbia and by the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice.
Justice Department Settles with Kentucky Apartment Complex Involving Allegations of Disability-based Housing DiscriminationRead the Press Release
The Justice Department today announced a settlement of its lawsuit against the owners, developers, architect and civil engineers of Park Place Apartments, a 276-unit complex in Louisville, Ky., resolving allegations that those involved in the design and construction of the complex discriminated against people with disabilities. Under the settlement, which must still be approved by a federal district judge in Louisville, the defendants will pay all costs related to making the apartment complex accessible to persons with disabilities and pay $275,000 to compensate 29 individuals who have been harmed by the inaccessible housing.
“The Fair Housing Act requires equal access to housing for persons with disabilities,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division, “and this comprehensive resolution will ensure equal access at this apartment complex and compensate those injured by the defendants’ failure to provide accessible housing.”
“Our office is committed to ensuring that all Kentucky residents have equal access to housing,” stated David J. Hale, U.S. Attorney for the Western District of Kentucky. “We will continue to build on our record of enforcing fair housing laws and remove these barriers that are discriminatory to Kentuckians with disabilities.”
The defendants responsible for the payments and retrofits are Kevin Cogan, Doris Cogan, Edwynn Burkle, George Clark, the Estate of James A. Hall, A. Bayus Inc., Mindel Scott & Associates Inc. +and A. Stanley Willett. The retrofitting includes modifying walkways, removing steps, providing accessible curb ramps and providing accessible walks to site amenities, such as the clubhouse, pool, mailbox and trash facilities. It also requires the defendants to reconfigure thermostats and outlets to accessible heights, increase door widths and reconfigure bathrooms and kitchens.
The lawsuit arose from a complaint that was filed with the Department of Housing and Urban Development (HUD) by a former resident of Park Place Apartments, who is represented by the Lexington Fair Housing Council, a Kentucky-based non-profit organization that enforces federal, state and local fair housing laws. HUD referred the matter to the Justice Department, which conducted its own investigation and subsequently filed the lawsuit in August 2010.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected] , or contact HUD at 1-800-669-9777.
Justice Department Files Lawsuit Alleging Immigration-Related Employment Discrimination by University of California, San Diego Medical CenterRead the Press Release
WASHINGTON – The Department of Justice announced today the filing of a lawsuit against the University of California, San Diego Medical Center, alleging that the medical center discriminated in the employment eligibility verification process against people who are authorized to work in the United States.
The department’s independent investigation revealed that the medical center engaged in a pattern or practice of subjecting newly hired non-U.S. citizens to excessive demands for documents issued by the Department of Homeland Security in order to verify and re-verify their employment eligibility, but did not require U.S. citizens to show any specific documentation. The Immigration and Nationality Act’s (INA) anti-discrimination provision prohibits employers from placing additional documentary burdens on work-authorized employees during the hiring and employment eligibility verification process based on their citizenship status or national origin.
“All workers who are authorized to work in the United States have the right to work without encountering discrimination because of their immigration status or national origin,” said Thomas E. Perez, Assistant Attorney General for the Justice Department’s Civil Rights Division. “We are committed to vigorously protecting authorized workers from discrimination in the hiring process and ensuring that employers uphold their obligations under the law.”
The complaint seeks a court order prohibiting future discrimination by the respondent, monetary damages for any individuals harmed by the respondent’s actions, and civil penalties.
The Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA, which protects work-authorized individuals against discrimination in hiring, firing and recruitment or referral for a fee on the basis of citizenship status and national origin. The INA also protects all work-authorized individuals from discrimination in the employment eligibility verification process and from retaliation.
The United States is represented in this matter by Luz V. Lopez-Ortiz and Ronald Lee, OSC Trial Attorneys.
For more information about protections against employment discrimination under federal immigration law, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TDD for hearing impaired), OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TDD for hearing impaired), or 202-616-5594; e-mail [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Ivory Smuggler Pleads Guilty in New YorkRead the Press Release
WASHINGTON – Lin Feng Xu, 31, an antique dealer in China, has pleaded guilty to smuggling and to violating the Endangered Species Act in connection with the illegal export of African elephant ivory in his carry-on luggage.
According to documents filed in federal court in Brooklyn, N.Y., today, a Transportation Security Administration (TSA) security officer at JFK International Airport in Queens, N.Y., alerted inspectors with the U.S. Fish & Wildlife Service on Sept. 17, 2011, that Xu, a Chinese national, was carrying suspected wildlife items in his carry-on luggage based on x-ray screening. When questioned about 18 carved art objects apparently made of ivory, Xu initially stated that he did not know what they were made from and that they had been purchased for approximately $3,000 to 4,000 at U.S. auction houses. In pleading guilty, Xu has admitted that he knew that the carvings were ivory and that they had a value of approximately $50,000. Also, Xu knew that it was a crime to export ivory from the United States without required documents and approval, according to papers filed in Court. Xu packed the ivory carvings in aluminum foil in order to conceal their outline from x-ray screening.
According to an expert examination of the ivory carvings, most are newly carved ivory and not genuine antiques. The African elephant is listed as a threatened species under the U.S. Endangered Species Act (ESA) and is also protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), an international treaty regulating trade on endangered species to which the United States is a party. The global demand for antiques and art made of or containing elephant ivory is believed to have resulted in a significant impact on the species and given life to a thriving black market. Despite international efforts to control the ivory trade and stop the decline of elephant populations, prices and demand remain high, thus causing continued elephant poaching and illegal ivory finding its way into international and domestic markets.
Xu was charged with a felony count for illegal smuggling that carries a maximum term of 10 years in prison and a fine of up to $250,000 or twice the gross gain from the offense. Xu was also charged with a misdemeanor violation of the ESA for knowingly engaging in trade of ivory specimens, contrary to the provisions of CITES, which carries a maximum sentence of one year in prison and a fine of up to $100,000, or twice the gross gain from the crime.
The Xu investigation was conducted by Special Agents of the U.S. Fish & Wildlife Service, Northeast Regional Office of Law Enforcement, with assistance from U.S. Fish & Wildlife Service Wildlife Inspectors, U.S. Immigration and Customs Enforcement, and the TSA. The case is being prosecuted by Senior Trial Attorney Richard A. Udell of the U.S. Department of Justice Environmental Crimes Section, Environment and Natural Resources Division, and Assistant U.S. Attorney Doug Pravda of the U.S. Attorney’s Office for the Eastern District of New York.
Former Worth County, Missouri, Sheriff Sentenced for Violating Civil Rights of Eight WomenRead the Press Release
The Department of Justice announced today that Neal Wayne “Bear” Groom, former sheriff in Worth County, Mo., was sentenced in Kansas City, Mo., for violating the civil rights of eight women while he was working as a law enforcement officer. On Aug. 17, 2011, Groom pleaded guilty to coercing the women to expose parts of their bodies to him, in violation of the Fourth Amendment prohibition against unreasonable searches. Magistrate Judge Sarah W. Hays sentenced Groom to 18 months in prison and one year of supervised release for the eight counts of conviction.
As part of the plea, Groom admitted that while he was sheriff of Worth County, he coerced the women into exposing unclothed parts of their bodies to him and that he photographed several of the women’s exposed or partially covered breasts. Groom mostly used the guise of checking the women for injuries related to domestic violence assaults or checking them for evidence of drug injections to coerce them into revealing different parts of their bodies to him. Groom admitted that he conducted the searches for no legitimate law enforcement purpose.
“The conduct in this case was particularly egregious in that it targeted potential victims of crime,” stated Assistant Attorney General for the Civil Rights Division Thomas E. Perez. “There is no place for such abuse of power in law enforcement, and the Department of Justice will continue to investigate and prosecute these cases across the country.”
U.S. Attorney for the Western District of Missouri Beth Phillips said, “We will not tolerate law enforcement officers who take advantage of the individuals whom they are sworn to protect. Such individuals shake the public’s confidence in law enforcement and thus harm not only the victims they target but also the community at large.”
This case was investigated by the FBI and the Missouri State Highway Patrol, and is being prosecuted by Assistant U.S. Attorney David M. Ketchmark from the U.S. Attorney’s Office and Trial Attorney Shan Patel from the Civil Rights Division of the Department of Justice.
Doctor and Two Nurses Sentenced to Prison for Roles in $25 Million Miami Health Care Fraud SchemeRead the Press Release
WASHINGTON – Two nurses and a doctor were sentenced yesterday in Miami federal court for their participation in a $25 million home health Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).
The following defendants were sentenced by U.S. District Judge Joan A. Lenard in Miami:
- Jose Nunez, 63, a medical doctor, was sentenced to 40 months in prison and was ordered to pay $1.1 million in restitution.
- Luisa Morciego, 40, a registered nurse, was sentenced to 24 months in prison and was ordered to pay $296,000 in restitution.
- Eneida Fry, 46, a licensed practical nurse, was sentenced to 24 months in prison and was ordered to pay $395,000 in restitution.
Nunez, Morciego and Fry were also each sentenced to three years of supervised release. The defendants were ordered to pay restitution jointly and severally with the co-defendants in this case and in a separate but related Medicare fraud case.
Morciego, Nunez and Fry each pleaded guilty to one count of conspiracy to commit health care fraud.
According to plea documents, Nunez was a medical doctor at two Miami-area medical offices that he owned and operated. Nunez referred patients to ABC Home Health Care Inc. and Florida Home Health Care Providers Inc., Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. According to court documents, ABC and Florida Home Health billed the Medicare program for expensive physical therapy and home health services that were not medically necessary and/or never provided. Prescriptions, plans of care (POCs) and medical certifications for medically unnecessary therapy and services were issued through Nunez’s offices and other doctors’ offices in return for kickbacks and bribes. Nunez falsified patient files with descriptions of non-existent medical conditions, such as hand tremors, unsteady gait and poor vision, to make it appear that beneficiaries qualified for home health and therapy services.
From approximately January 2006 through March 2009, Nunez referred approximately 43 Medicare beneficiaries for medically unnecessary services to ABC and Florida Home Health. The medically unnecessary referrals, POCs and medical certifications resulted in approximately $1.5 million in fraudulent billings to Medicare, of which approximately $1.1 million was paid.
According to court documents, Morciego and Fry worked at ABC and Florida Home Health. Morciego and Fry, along with their co-defendant nurses, falsified patient files for Medicare beneficiaries to make it appear that the beneficiaries qualified for home health care and therapy services, when, in fact, they did not. Morciego, Fry and their co-defendant nurses did so by, among other things, describing in the nursing notes and patient files symptoms that were nonexistent. Morciego and Fry knew that these files were falsified to bill Medicare for unnecessary services, which they knew was in violation of federal criminal laws.
Fry’s additional role in the scheme was to recruit Medicare beneficiaries who would allow ABC and Florida Home Health to bill Medicare for services that were medically unnecessary and/or never provided. Fry solicited and received kickbacks and bribes from the owners and operators of ABC and Florida Home Health in return for allowing the agencies to bill Medicare on behalf of the recruited patients. Fry knew that the patients she recruited did not qualify for the services billed to Medicare and that their files were falsified to make it appear that they did qualify for the services.
As a result of Morciego’s and Fry’s participation in the illegal scheme, the Medicare program was billed approximately $296,000 and $395,000, respectively, for purported home health care services that were unnecessary and/or never provided.
The sentences were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; John V. Gillies, Special Agent-in-Charge of the FBI’s Miami field office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
This case is being prosecuted by Trial Attorney Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,140 defendants who collectively have falsely billed the Medicare program for more than $2.9 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .
Detroit-Area Clinic Owner Pleads Guilty in Connection with Medicare Fraud SchemeRead the Press Release
WASHINGTON – A clinic owner pleaded guilty today for her participation in a Detroit-area Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).
Dora Binimelis, 53, of Miami, pleaded guilty before U.S. District Judge Arthur J. Tarnow in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. At sentencing, Binimelis faces a maximum penalty of 10 years in prison and a $250,000 fine.
According to the plea documents, Binimelis was an owner of Blessed Medical Clinic, which purported to be a medical clinic that specialized in diagnostic testing. Binimelis admitted that the clinic defrauded Medicare by billing for expensive and medically unnecessary tests. The owners and operators of Blessed paid patient recruiters, who paid cash bribes to Medicare beneficiaries. In exchange for the cash bribes, the beneficiaries agreed to attend the clinic where they provided their Medicare provider numbers and other information, which was used to bill Medicare for unnecessary tests and services. According to her plea, Binimelis knew that the purpose of the clinic was not to treat sick patients, but to make money by defrauding Medicare. Binimelis provided diagnostic testing equipment and the capital infusion to open Blessed. In exchange for her contributions, she received a share of the Medicare fraud proceeds. According to court documents, Blessed billed Medicare $2.4 million for medically unnecessary diagnostic tests.
Today’s guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.
This case is being prosecuted by Assistant U.S. Attorney Philip A. Ross of the Eastern District of Michigan, with assistance from Acting Assistant Chief Benjamin D. Singer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since their inception in March 2007, the Medicare Fraud Strike Force operations in nine districts have charged more than 1,140 individuals who collectively have falsely billed the Medicare program for more than $2.9 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Alpha Natural Resources Inc. and Department of Justice Reach $209 Million Agreement Related to Upper Big Branch Mine ExplosionRead the Press Release
Alpha Natural Resources Inc. has agreed to make payments and safety investments totaling $209 million in connection with the criminal investigation of the April 5, 2010, explosion at the Upper Big Branch mine (UBB) in Montcoal, W.Va., announced Attorney General Eric Holder, U.S. Attorney R. Booth Goodwin II for the District of West Virginia and officials with the FBI and Department of Labor’s Office of Inspector General.
The explosion at the UBB mine claimed the lives of 29 coal miners and injured two others. At the time of the explosion, the mine was owned by Massey Energy Company, whose operations came under Alpha’s control in a June 1, 2011, merger.
“The tragedy at Upper Big Branch will never be forgotten, and the families affected by it will never be made completely whole again. Today’s agreement represents the largest-ever resolution in a criminal investigation of a mine disaster and will ensure appropriate steps are taken to improve mine safety now and will fund research to enhance mine safety in the future,” said Attorney General Holder. “While we continue to investigate individuals associated with this tragedy, this historic agreement – one of the largest payments ever for workplace safety crimes of any type – will help to create safer work environments for miners in West Virginia and across the country.”
“There should never be another UBB, and this announcement is aimed squarely at that goal. For far too long, we've accepted the idea that catastrophic accidents are an inherent risk of being a coal miner. That mindset is unacceptable,” said U.S. Attorney Goodwin. “Collectively, these requirements will set a new standard for what can and should be done to protect miners. We look forward to a future in which coal mining is as safe as any other occupation.”
As part of the non-prosecution agreement, Alpha will invest at least $80 million in mine safety improvements at all of its underground mines, including those formerly owned by Massey. Alpha will also place $48 million in a mine health and safety research trust, to be used to fund academic and non-profit research that will advance efforts to enhance mine safety. In addition, the company will pay restitution of $1.5 million to each of the families of the 29 miners who died at UBB and to the two individuals who were injured, for a total restitution payment of $46.5 million. Alpha also will pay a total of up to $34.8 million in penalties owed to the Mine Safety and Health Administration (MSHA), including all penalties that arise from the UBB accident investigation.
The remedial safety measures included in the agreement include the following:
- Installation of digital monitoring systems in all its underground mines to continuously monitor compliance with ventilation requirements and to ensure mines are free of potentially explosive methane gas;
- Implementation of a plan to ensure that each of its underground mines has the personnel and resources necessary to meet all legal requirements concerning incombustible material and accumulations of coal dust and loose coal;
- Purchase state-of-the-art equipment to monitor its mines for explosive concentrations of coal dust and use that equipment in all its underground mines;
- Purchase next-generation rock dusting equipment (pending MSHA approval), further enhancing its ability to combat explosion hazards;
- Installation of oxygen cascading systems to help miners make their way to safety if a serious accident should occur; and
- Building of a state-of-the-art training facility and implementation of a full training curriculum to train Alpha miners, which will be available to other mining companies.
The agreement announced today is the largest-ever resolution in a criminal investigation of a mine disaster. It addresses only the corporate criminal liability of the former Massey, not potential criminal charges for any individual. The criminal investigation of individuals associated with Massey remains ongoing.
Two New Jersey Men Charged with Allegedly Trafficking Counterfeit PerfumeRead the Press Release
WASHINGTON – Two New Jersey men were charged in an indictment unsealed on Dec. 1, 2011, in the Eastern District of New York for their alleged roles in a conspiracy to import and traffic in counterfeit perfume, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Loretta E. Lynch of the Eastern District of New York.
Sanjay Anandani, 34, of Clinton, N.J., was arrested on Dec. 1, 2011, in Secaucus, N.J., and made his initial appearance before U.S. Magistrate Judge Robert M. Levy in the Eastern District of New York. Rohit Rohit, 28, of Edgewater, N.J., surrendered to authorities on Dec. 2, 2011, and made his initial appearance before U.S. Magistrate Judge Cheryl L. Pollack in the Eastern District of New York.
According to the indictment, Anandani and Rohit conspired with each other and others to traffic in counterfeit perfume. The indictment alleges that Anandani and Rohit imported three shipping containers with counterfeit perfume during 2009 and 2010, as well as 4,600 fragrance boxes bearing counterfeit perfume trademarks.
The two-count indictment filed in the Eastern District of New York charges each defendant with conspiracy to traffic in counterfeit goods and trafficking in counterfeit goods. The conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine. The trafficking charge carries a maximum penalty of 10 years in prison and a $2,000,000 fine.
Criminal indictments are only charges and are not evidence of guilt. All defendants are presumed innocent until and unless proven guilty by proof beyond a reasonable doubt in a court of law.
The indictment announced today is an example of the type of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce/.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The case is being prosecuted by Senior Counsel Jason Gull of the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division.
The ICE HSI-led National Intellectual Property Rights Coordination Center (IPR Center) is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. The IPR Center uses the expertise of its 19 member agencies to share information, develop initiatives, coordinate enforcement actions, and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the IPR Center, visit www.IPRCenter.gov.
Statement of the Department of Justice's Antitrust Division on Its Decision to Close Its Investigation of Google Inc.'s Acquisition of Admeld Inc.Read the Press Release
WASHINGTON – The Department of Justice’s Antitrust Division issued the following statement today after announcing the closing of its investigation into the proposed acquisition of Admeld Inc., an online display advertising service provider, by Google Inc.:
“The Antitrust Division obtained extensive information from Google, Admeld and a wide range of market participants in connection with its merger investigation of the proposed transaction. After a thorough review of the evidence, the division concluded that the transaction is not likely to substantially lessen competition in the sale of display advertising.
“Although the Antitrust Division concluded that this particular transaction was unlikely to cause consumer harm, the division will continue to be vigilant in the enforcement of the antitrust laws to protect competition in display and other forms of online advertising.
“The division’s investigation focused on the potential effect of the proposed transaction on competition in the display advertising industry. Both Google and Admeld provide services and technology to web publishers that facilitate the sale of those publishers’ display advertising space. Google is a diversified software company whose offerings for publishers include an advertising exchange, an advertising network and an ad server. Admeld operates a supply-side platform (SSP) that helps publishers optimize the yield from their display advertising inventory.
“The investigation determined that web publishers often rely on multiple display advertising platforms and can move business among them in response to changes in price or the quality of ad placements. This use of multiple display advertising platforms, commonly called “multi-homing,” lessens the risk that the market will tip to a single dominant platform. In addition, there have been recent SSP and advertising exchange entrants in the display advertising industry. These were significant considerations in the division’s decision to close the investigation.
“Given Google’s significant presence in search, as previously noted during our 2010 investigation involving Microsoft/Yahoo! and 2008 investigation involving Google/Yahoo!, the Antitrust Division also carefully evaluated whether Google’s acquisition of Admeld would enable Google to extend its market power in the Internet search industry to online display advertising through anticompetitive means. The division will continue to rigorously enforce the antitrust laws to ensure that transactions affecting evolving markets such as display and other forms of online advertising, as well as search, do not inhibit competition or innovation in any way.
“Google Inc., based in Mountain View, Calif., operates the largest Internet search engine in the world and one of the largest display advertising platforms. Google derives revenue primarily from advertising, both as a publisher itself and as an intermediary between advertisers and other publishers. Aside from advertising-related products, Google’s software offerings include a smartphone operating system, web-based email and mapping programs. In 2010, Google had revenues of approximately $29 billion.
“Admeld Inc., established in 2007 and based in New York City, operates one of the largest SSPs in the display advertising industry. Admeld offers a combination of services that include usage of its own advertising exchange, facilitating interaction with advertising networks and general advisory services. In 2010, Admeld raised approximately $30 million.”
The division provides this statement under its policy of issuing statements concerning the closing of investigations in appropriate cases. This statement is limited by the division’s obligation to protect the confidentiality of certain information obtained in its investigations. As in most of its investigations, the division’s evaluation has been highly fact-specific, and many of the relevant underlying facts are not public. Consequently, readers should not draw overly broad conclusions regarding how the division is likely in the future to analyze other collaborations or activities, or transactions involving particular firms. Enforcement decisions are made on a case-by-case basis, and the analysis and conclusions discussed in this statement do not bind the division in any future enforcement actions. Guidance on the division’s policy regarding closing statements is available at www.justice.gov/atr/public/closing/index.html.
New Guidance Supports Voluntary Efforts to Promote Diversity and Reduce Racial Isolation in EducationRead the Press Release
WASHINGTON – Today, the Departments of Justice and Education released two new guidance documents – one for school districts and one for colleges and universities – detailing the flexibility that the Supreme Court has provided to educational institutions to promote diversity and, in the case of elementary and secondary schools, reduce racial isolation among students within the confines of the law.
The guidance makes clear that educators may permissibly consider the race of students in carefully constructed plans to promote diversity or, in K-12 education, to reduce racial isolation. It recognizes the learning benefits to students when campuses and schools include students of diverse backgrounds.
“Diverse learning environments promote development of analytical skills, dismantle stereotypes, and prepare students to succeed in an increasingly interconnected world,” said Attorney General Eric Holder. “The guidance announced today will aid educational institutions in their efforts to provide true equality of opportunity and fully realize the promise of Brown v. Board of Education.”
“Racial isolation remains far too common in America’s classrooms today and it is increasing,” said Education Secretary Arne Duncan. “This denies our children the experiences they need to succeed in a global economy, where employers, co-workers, and customers will be increasingly diverse. It also breeds educational inequity, which is inconsistent with America’s core values.”
The guidance is primarily based on three Supreme Court decisions, Parents Involved in Community Schools v. Seattle School District No. 1 , Grutter v. Bollinger and Gratz v. Bollinger , which specifically addressed the consideration of race by educational institutions. In addition, the guidance provides numerous examples of options that schools and postsecondary institutions can consider to further diversity or reduce racial isolation. For K-12 schools, the guidance discusses school and program siting, drawing school attendance boundaries, grade realignment and restructuring feeder patterns, among other options. The guidance for postsecondary institutions describes how race can be taken into account in admissions, in pipeline programs, in recruitment, and in mentoring, tutoring, retention and support programs as efforts to achieve diversity.
The guidance lays out legal standards under the Equal Protection Clause of the Fourteenth Amendment and Titles IV and VI of the Civil Rights Act of 1964, which are enforced by the Departments. Previous guidance issued by the Bush Administration in 2008 is being withdrawn today.
To review the guidance, please visit: www.justice.gov/crt/about/edu/guidance.php .
For more information about the Department of Education’s Office for Civil Rights, please visit www2.ed.gov/about/offices/list/ocr/index.html?src=oc . For more information about the Educational Opportunities Section of the Department of Justice’s Civil Rights Division, please visit www.justice.gov/crt/edo/ .
Former Chicago Police Officer Pleads Guilty to Racketeering and Related Charges for Involvement with Latin Kings GangRead the Press Release
WASHINGTON – Antonio C. Martinez Jr., 40, a former Chicago police officer, pleaded guilty today to racketeering conspiracy and related charges, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana.
Martinez pleaded guilty before U.S. District Judge Rudy Lozano to conspiracy to commit racketeering activity; conspiracy to distribute more than five kilograms of cocaine and more than 1,000 kilograms of marijuana; robbery; and using a firearm while committing these federal crimes. Martinez was charged, along with 14 additional defendants, in a third superseding indictment unsealed on Nov. 18, 2011. To date, 21 individuals, including Martinez, have been charged for crimes related to their membership or association with the Almighty Latin Kings and Queen Nation (Latin Kings) gang.
Martinez admitted that he committed a series of robberies from 2004 to 2006 at the direction of the Latin Kings, using his position as a Chicago police officer to facilitate the robberies. Martinez admitted that he was wearing his Chicago Police Department badge and department-issued weapon when he committed the robberies, which included those of drug traffickers in Rockford, Ill.; Chicago; and East Chicago, Ind. In one instance, Martinez admitted to participating in the armed robbery at the home of a deceased Latin Dragon gang leader in Hammond, Ind. In addition, Martinez admitted that he picked up and delivered packages of cocaine on multiple occasions for two Latin Kings leaders.
Sentencing is scheduled for June 14, 2012. At sentencing, Martinez faces a maximum penalty of life in prison.
The investigation of Martinez was conducted by the Chicago City Public Corruption Task Force, a Chicago Police Department- Internal Affairs and FBI Chicago law enforcement initiative. The investigation of the remaining defendants was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Immigration and Custom Office of Homeland Security Investigations; the National Gang Targeting, Enforcement & Coordination Center; the National Gang Intelligence Center; the Chicago Police Department; the East Chicago Police Department; the Griffith, Ind., Police Department; the Hammond Police Department; the Highland, Ind., Police Department; and the Houston Police Department.
The cases are being prosecuted by Trial Attorney Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana.
Five San Francisco MS-13 Members Sentenced to Life in PrisonRead the Press Release
WASHINGTON – Five San Francisco-area members of the La Mara Salvatrucha (MS-13) gang were sentenced yesterday to life in prison, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Melinda Haag of the Northern District of California.
Marvin Carcamo, aka “Cyco,” 31; Angel Guevara, aka “Peloncito,” 30; Moris Flores, 22; Jonathan Cruz-Ramirez, 22; and Erick Lopez, aka “Spooky,” 23, were sentenced by U.S. District Judge William Alsup in the Northern District of California.
The five defendants were convicted by a jury on Aug. 30, 2011, after a five-month trial. According to the evidence presented at trial, MS-13 is a transnational gang principally composed of individuals of Salvadoran descent that originated in Los Angeles and eventually spread throughout the United States and the world.
MS-13 is organized into local chapters, known as “cliques.” The San Francisco clique — called the “20th Street clique” or simply “20th Street,” after the location it claimed as its home base — has existed since the early 1990s. Since its founding, 20th Street’s principle purpose was to attack and kill rival gang members, including members of the various Norteño and Sureño gangs in the Bay Area of California, as well as individuals who cooperated with law enforcement or defied the gang’s will.
According to the evidence presented at trial, Carcamo and Guevara were MS-13 members since the early 2000s. By 2007, they ascended to the leadership of 20th Street and pushed a new “program,” presented by gang leaders in Los Angeles and El Salvador, that increased violence against rivals and extorted “tax” payments from criminals.
Carcamo and Guevara directed members of 20th Street to threaten micaros — individuals who sold counterfeit identification cards, known as “ micas” — who operated in 20th Street’s territory in the Mission District. In addition, Carcamo and Guevara extended their ambitions by trying to take over the taxation of drug dealers in parts of the Tenderloin District, territory traditionally claimed by the 11th Street Sureño gang. 20th Street’s expansion attempt prompted complaints from the 11th Street Sureños, to which Carcamo and Guevara responded with threats of violence.
According to evidence at trial, by December 2007, Carcamo was arrested for robbery and Guevara was arrested for stabbing three individuals. Flores took over the leadership of the 20th Street clique and, guided by Carcamo and Guevara from jail, continued to pursue the violent new program. As a result, members of 20th Street became particularly violent in 2008.
Among other acts of violence, during the early morning of March 30, 2008, Lopez shot and killed Ernad Joldic and Philip Ng in the vicinity of Persia and Athens Street in the mistaken belief that the victims were Norteño gang members. On May 31, 2008, because of micaro resistance to paying the tax that MS-13 demanded, Cruz-Ramirez shot and killed micaro leader Juan Rodriguez as Rodriguez sat in a car in the vicinity of Laura and Huron Streets.
On July 11, 2008, following a fight the day before between members of 20th Street and micaros, Cruz-Ramirez drove fellow gang member Guillermo Herrera to the vicinity of 20th and Mission Streets, where Herrera chased down micaro Armando Estrada and killed him on a busy street. During the early morning of July 31, 2008, in response to Flores’s order to retaliate for the non-fatal shooting of a 20th Street member’s family by a suspected Norteño, a group of 20th Street members pursued 14-year old Ivan Miranda and, believing he was a Norteño, stabbed him to death in the vicinity of Persia and Madrid Streets.
All five defendants were convicted of racketeering (RICO) conspiracy, conspiracy to commit murder in aid of racketeering, conspiracy to commit assault with a dangerous weapon in aid of racketeering and possession of a firearm in furtherance of a crime of violence. Guevara was also convicted of three counts of attempted murder in aid of racketeering and three counts of assault with a dangerous weapon in aid of racketeering for his role in trying to kill three individuals in December 2007. Cruz-Ramirez was also convicted of the racketeering murder of Armando Estrada and related firearms charges. Lopez was also convicted of the racketeering murders of Ernad Joldic and Philip Ng and related firearms charges.
Co-defendant Guillermo Herrera was also convicted in August 2011 and is scheduled to be sentenced by Judge Alsup on Dec. 8, 2011. He faces a mandatory minimum sentence of life in prison for a racketeering murder charge.
On Nov. 29, 2011, in a separate trial before Judge Alsup, a jury convicted Danilo Velasquez of multiple racketeering offenses. According to evidence presented during trial, Velasquez took over the leadership of the 20th Street clique after Moris Flores’s arrest in October 2008. He is scheduled to be sentenced on Feb. 14, 2012, before Judge Alsup and faces a maximum term of life in prison.
These cases were prosecuted by Trial Attorney Theryn Gibbons of the Organized Crime and Gang Section of the Justice Department’s Criminal Division and Assistant U.S. Attorneys Wil Frentzen, Andrew M. Scoble, David Hall and W.S. Wilson Leung of the Strike Force and Violent Crimes Section of the Northern District of California. The cases were investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations, with the assistance of the San Francisco Police Department and the Daly City Police Department.
Detroit-Area Clinic Owner Sentenced to 78 Months in Prison for Role in $9.1 Million Medicare Fraud SchemeRead the Press Release
WASHINGTON – Joaquin Tasis was sentenced today to 78 months in prison for his role in a $9.1 million Detroit-area Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).
Tasis was sentenced by U.S. District Judge Arthur Tarnow in the Eastern District of Michigan. In addition to his prison term, Tasis was sentenced to three years of supervised release and was ordered to pay $6 million in restitution, jointly and severally with his co-defendants.
Joaquin Tasis and co-defendants Martin Tasis and Leoncio Alayon were convicted by a jury in May 2011 after a five-day trial. Evidence presented at trial showed that the Tasis brothers and their co-conspirators helped relocate a highly lucrative infusion therapy fraud scheme to Michigan from South Florida after increased law enforcement scrutiny there, and that Alayon helped the conspirators launder proceeds from the scheme. Martin Tasis was sentenced in October 2011 to 10 years in prison and two years of supervised release for his role in the scheme.
According to evidence presented at trial, Martin and Joaquin Tasis were partners in a Detroit-area clinic called Dearborn Medical Rehabilitation Center (DMRC). Evidence at trial showed that Medicare beneficiaries were not referred to DMRC by their primary care physicians, or for any other legitimate medical purpose, but rather were recruited to come to the clinic through the payment of cash kickbacks. DMRC then billed Medicare for expensive and exotic medications, purportedly administered to treat HIV and Hepatitis-C. However, the medications were never administered.
Once Medicare started paying the co-conspirators, Martin Tasis enlisted Alayon, a family friend, to help him launder the proceeds of the fraud through a shell corporation in Florida called Infinity Research Corp. Evidence at trial showed that Infinity Research Corp. had no employees, did no research and was based at Alayon’s residence. Alayon, after taking a commission for himself, distributed the laundered proceeds to Martin and Joaquin Tasis and their co-conspirators.
Between November 2005 and March 2007, DMRC billed approximately $9.1 million in claims to Medicare for injection therapy services that were never provided and/or were not medically necessary. Medicare paid approximately $6 million of those claims. Evidence at trial showed that DMRC purchased only $36,000 in medication and medical supplies.
Joaquin Tasis was convicted of one count of conspiracy to commit health care fraud, one count of conspiracy to pay health care kickbacks and three counts of health care fraud.
Today’s sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
The case was prosecuted by Trial Attorney Gejaa T. Gobena of the Criminal Division’s Fraud Section and Assistant U.S. Attorney for the Eastern District of Michigan Philip A. Ross. The FBI and HHS-OIG conducted the investigation.
Since its inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,140 individuals and organizations that collectively have billed the Medicare program for more than $2.9 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Department of Justice Releases Investigative Findings on the Arthur G. Dozier School for Boys and the Jackson Juvenile Offender Center in FloridaRead the Press Release
WASHINGTON – Following a comprehensive investigation, the Justice Department today announced its findings that the state of Florida’s oversight system failed to detect and sufficiently address harmful practices at both the Arthur G. Dozier School for Boys and the Jackson Juvenile Offender Center (JJOC), which together constituted the North Florida Youth Development Center (NYFDC). Despite the closure of these facilities, the deficiencies found by the United States implicate the continuing oversight obligations of the state. The state’s lack of adequate controls permitted these violations to persist. It is incumbent upon the state to ensure that the unconstitutional conditions of confinement identified in the report do not exist at its other juvenile justice institutions.
The United States announced its investigation of the NYFDC facilities on April 7, 2010, in accordance with the Violent Crime Control and Law Enforcement Act of 1994. On May 26, 2011, Florida’s Department of Juvenile Justice (DJJ) announced the pending closure of Dozier and JJOC. The facilities were officially closed on June 30, 2011, and the residents were transferred to juvenile justice institutions throughout the state. The Justice Department found reasonable cause to believe that a pattern or practice of unconstitutional conduct and/or violations of federal law occurred in several areas, including:
- Failure to adequately protect youth from harm;
- Unconstitutional uses of disciplinary confinement;
- Deliberate indifference to youth at risk of self-injurious and suicidal behaviors;
- Violations of youth’s due process rights; and
- Failure to provide necessary rehabilitation services.
These violations were the result of the state’s failed system of oversight and accountability. To protect the youth in its remaining facilities, the state must take immediate measures to assess the full extent of its failed oversight with the assistance of experts in juvenile protection from harm issues. The state must also strengthen its oversight processes by implementing a more rigorous system of hiring, training and accountability.
The United States thanks and acknowledges the state for its cooperation throughout this investigation.
The Violent Crime Control and Law Enforcement Act of 1994 authorizes the Department of Justice to seek a remedy for a pattern or practice of conduct that violates the constitutional or federal statutory rights of youth in juvenile justice institutions.
The full report can be found at www.justice.gov/crt/about/spl/documents/dozier_findltr_12-1-11.pdf. For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt
Aryan Brotherhood of Texas Member Convicted of Federal Racketeering and Firearms Charges <br /> Related to Jefferson County, Texas, ShootingRead the Press Release
WASHINGTON – A member of the Aryan Brotherhood of Texas (ABT) was convicted yesterday of racketeering and firearms charges related to his role in the 2009 shooting of a man in Jefferson County, Texas, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney John M. Bales of the Eastern District of Texas.
John Oliver Manning, aka “Fish,” 52, of Pasadena, Texas, was charged by a federal grand jury on Mar. 17, 2011, with violent crimes in aid of racketeering activity. The activities include conspiracy to commit assault with a dangerous weapon, assault with a dangerous weapon, using and carrying a firearm during and in relation to a crime of violence and possession of a firearm by a convicted felon.
Co-defendant Joshua Mark Bodine, aka “Desperado,” 32, of Vidor, Texas, pleaded guilty Oct. 11, 2011, to assault with a dangerous weapon in aid of racketeering activity. Bodine has been in custody since his arrest on Feb. 24, 2011, and Manning has been in custody since his arrest on Sept. 9, 2009.
According to the indictment, the ABT is a race-based, state-wide organization that operates inside and outside of state and federal prisons throughout Texas and the United States. The ABT was established in the early 1980s within the Texas prison system. It modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its focus to create a criminal enterprise that includes illegal activities for profit.
According to evidence presented at trial, the ABT enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, are required to follow the orders of higher-ranking members, often referred to as “direct orders.”
The evidence at trial established that on Sept. 7, 2009, Manning shot and wounded ABT associate Matthew Fails in Nederland, Texas, on the orders of Bodine. Specifically, Manning approached Fails with a firearm and a pair of handcuffs in an attempt to collect a debt on Bodine’s behalf, and ultimately shot Fails. Fails was declared brain-dead, but later regained consciousness after emergency surgery. A surgeon testified that the wound Fails received caused “agonizing pain” and that Fails “would not ever be the same.”
At sentencing, Manning faces up to life in prison and a mandatory minimum sentence of 25 years in prison. Sentencing dates have not been scheduled for Manning and Bodine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Nederland Police Department; Orange County, Texas, Constable’s Office, Precinct 2; Jefferson County, Texas, Sheriff’s Office; Williamson County, Texas, Sheriff’s Office; Chambers County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Mont Belvieu, Texas, Police Department; Texas Department of Criminal Justice. The case was prosecuted by Trial Attorney Cody L. Skipper of the Criminal Division’s Organized Crime and Gang Section and Special Assistant U.S. Attorney Baylor Wortham of the Eastern District of Texas.
Alabama Real Estate Investor Agrees to Plead Guilty to Conspiracy to Rig Bids for the Purchase of Real Estate at Public Foreclosure AuctionsRead the Press Release
WASHINGTON – A Mobile, Ala., real estate investor has agreed to plead guilty today for his role in a conspiracy to rig bids and commit mail fraud at public real estate foreclosure auctions in southern Alabama, the Department of Justice announced.
Charges were filed today in U.S. District Court for the Southern District of Alabama in Mobile against Bobby Threlkeld Jr. Threlkeld was charged with one count of bid rigging to obtain selected real estate at foreclosure auctions and one count of conspiracy to commit mail fraud. The department said that Threlkeld participated in a conspiracy to rig bids by agreeing to refrain from bidding against other investors at public real estate foreclosure auctions in Mobile County and its surrounding areas.
The department said that the primary purpose of the conspiracy was to suppress and restrain competition and to make and receive payoffs in order to obtain selected real estate offered at public foreclosure auctions at noncompetitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner.
“Today’s charges demonstrate that the Antitrust Division vigorously pursues and prosecutes those who take part in conspiracies to rig bids at real estate foreclosure auctions,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division is committed to working closely with its law enforcement partners to ensure that these real estate auctions are fair and open so that consumers will benefit from competition.”
According to the court documents, between May 2001 and December 2006, Threlkeld conspired with others not to bid against one another at public real estate foreclosure auctions in southern Alabama. After the conspirators’ designated bidder bought a property at the public auctions, which typically take place at the county courthouse, the conspirators would generally hold a secret, second auction at which each participant would bid the amount above the public auction price he was willing to pay. The highest bidder at the secret, second auction won the property. Threlkeld was also charged with conspiring to commit mail fraud by using the U.S. mail in carrying out the conspiracy to defraud financial institutions by paying potential competitors not to bid competitively in the public auctions for foreclosed properties.
Threlkeld was charged with violating the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than the statutory maximum. Threlkeld was also charged with conspiracy to commit mail fraud which carries a maximum penalty of 20 years in prison and a fine in the amount equal to the greatest of $250,000, twice the gross gain the conspirators derived from the crime, or twice the gross loss caused to the victims of the crime by the conspirators.
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in southern Alabama. In addition to today’s charges, on Sept. 15, 2011, Allen K. French, Harold H. Buchman and Buchman’s company, M & B Builders LLC, were each charged in U.S. District Court for the Southern District of Alabama with one count of bid rigging to obtain selected real estate in southern Alabama at foreclosure auctions. On the same day, M & B Builders was also charged with one count of conspiracy to commit mail fraud. On Oct. 14, 2011, French, Buchman and M & B Builders pleaded guilty to the charges.
The Antitrust Division and the FBI have identified a pattern of collusive schemes among real estate investors aimed at eliminating competition at real estate foreclosure auctions, and today’s charges are part of the department’s ongoing effort to combat this conduct and restore competition to public auctions. The investigation into fraud and bid rigging at certain real estate foreclosure auctions in Southern Alabama is being conducted by the Antitrust Division’s Atlanta Field Office and the FBI’s Mobile Field Office, with the assistance of the U.S. Attorney’s Office for the Southern District of Alabama. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s Atlanta Field Office at 404-331-7100 or visit www.justice.gov/atr/contact/newcase.htm.
Today’s charges are part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.
Maryland-Based Viable Communications, Its Owner and a Former Executive Sentenced for Roles in $20 Million Fraud SchemeRead the Press Release
WASHINGTON – The owner and the former vice president for corporate strategy of Viable Communications Inc. were each sentenced yesterday to 108 months and 55 months in prison, respectively, for their roles in a scheme that defrauded the Federal Communications Commission (FCC) of at least $20 million, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and FBI Assistant Director in Charge James W. McJunkin of the Washington Field Office.
John T. C. Yeh, the owner of Viable, a Rockville, Md., company, and his brother, Joseph Yeh, the former vice president for corporate strategy, were also ordered to pay $20 million in restitution to the FCC. Viable pleaded guilty to conspiracy to commit mail fraud and was ordered to forfeit $20 million and pay $20 million in restitution to the FCC.
John Yeh, 64, Joseph Yeh, 66, and Viable were sentenced by U.S. District Judge Joel A. Pisano in Trenton, N.J. Both executives were indicted on Nov. 19, 2009, along with Viable and other employees of Viable, and pleaded guilty to conspiring to commit mail fraud in October 2010. In connection with their sentencings, both men admitted to defrauding at least $20 million from the FCC’s Video Relay Service (VRS), a program designed to pay for services for the hearing disabled.
John Yeh and Joseph Yeh admitted that beginning in approximately fall 2007, they conspired with others to pay individuals to make fraudulent VRS phone calls using Viable’s VRS service. According to court documents, both men paid employees of Viable, who then paid others to make the fraudulent phone calls. Viable then submitted the fraudulent call minutes to the FCC and was paid approximately $390 per hour for all VRS calls that Viable processed.
VRS is an online video translation service that allows people with hearing disabilities to communicate with hearing individuals through the use of interpreters and Web cameras. A person with a hearing disability who wants to communicate with a hearing person can do so by contacting a VRS provider through an audio and video Internet connection. The VRS provider, in turn, employs a video interpreter to view and interpret the hearing disabled person’s signed conversation and relay the signed conversation orally to a hearing person. VRS is funded by fees assessed by telecommunications providers to telephone customers, and is provided at no cost to the VRS user.
These cases are being prosecuted by Deputy Chief Hank Bond Walther and Trial Attorney Robert Zink of the Criminal Division’s Fraud Section and Brigham Cannon, former Trial Attorney in the Fraud Section. The cases were investigated by the FBI’s Washington Field Office, the U.S. Postal Inspection Service and the FCC Office of Inspector General.
Justice Department Opens Investigations into Two Western Pennsylvania State Correctional InstitutionsRead the Press Release
WASHINGTON – The Justice Department announced today that it is opening civil investigations into two state correctional institutions (SCI) in Western Pennsylvania. In accordance with the pattern or practice provision of the Civil Rights of Institutionalized Persons Act (CRIPA), the department will investigate allegations that SCI Pittsburgh failed to adequately protect prisoners from harm, including from prisoner-on-prisoner and officer-on-prisoner violence and sexual violence, in violation of the Eighth Amendment to the U.S. Constitution. In addition, the department will look into whether SCI Pittsburgh officers systematically targeted prisoners for violence and other abuse based on the prisoners’ race, sexual orientation, gender identity or other status, in violation of the Equal Protection Clause of the 14th Amendment to the U.S. Constitution.
The department will also investigate allegations that SCI Cresson provided inadequate mental health care to prisoners who have mental illness, failed to adequately protect such prisoners from harm, and subjected them to excessively prolonged periods of isolation, in violation of the Eighth Amendment to the U.S. Constitution.
The Justice Department will seek to determine whether there is a pattern or practice of violations of the Constitution by officers or staff at SCI Cresson and SCI Pittsburgh. During the course of the investigation, the Justice Department will consider all relevant information. The investigation will include visits to the facilities, a review of records, interviews with corrections officials, prisoners and other witnesses, including family and community members, and advocates. The Justice Department has taken similar steps involving a variety of state and local correctional facilities, both large and small.
Starting on Dec. 2, 2011, the department will be able to receive additional information from community members via email at [email protected].
Today’s announcement is separate from any potential federal criminal investigation involving these facilities.
The Department of Justice’s Civil Rights Division, Special Litigation Section and the U.S. Attorney’s Office for the Western District of Pennsylvania are jointly investigating this matter.
Former White Mountain Apache Tribal Police Officer Pleads Guilty in Arizona to Civil Rights ViolationsRead the Press Release
WASHINGTON – Former White Mountain Apache Tribal police officer, Glenn Cromwell, 35, pleaded guilty today in federal court in Phoenix to two counts of violating civil rights while acting under color of law for detaining, transporting, and then abandoning two adult males in extreme weather conditions on different occurrences in December 2008.
During the plea hearing, Cromwell admitted to violating the constitutional rights of two men by detaining and driving each, in separate incidents, to a remote location and then forcing the men out of the police vehicle and leaving them in the frigid cold. In both instances, Cromwell willfully exceeded and abused his authority under law.
“This police officer had no legitimate purpose for deliberately exposing persons in his custody to perilous conditions,” said Thomas E. Perez, Assistant Attorney General for Civil Rights. “His conduct undermines the dedicated work of the men and women in law enforcement who serve and protect our communities. T he Justice Department is committed to holding officers who engage in such criminal acts accountable.”
Sentencing for Cromwell is scheduled for Feb. 13, 2012. Cromwell faces a possible maximum sentence of one year in prison for each count.
This case was investigated by the Phoenix Field Office of the FBI and was prosecuted by Trial Attorney D.W. Tunnage of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Alison S. Bachus for the District of Arizona.
Former Indianapolis City-County Councilman Sentenced for Soliciting a Bribe and Attempted ExtortionRead the Press Release
WASHINGTON – Former Indianapolis and Marion County, Ind., City-County Councilman Lincoln Plowman was sentenced today to 40 months in prison , announced Assistant Attorney General Lanny A. Breuer for the Justice Department’s Criminal Division and U.S. Attorney Joseph H. Hogsett of the Southern District of Indiana.
U.S. District Judge Larry J. McKinney also ordered Plowman to serve two years of supervised release following his prison term. Plowman, 48, was convicted by an Indianapolis jury in September 2011 of attempted extortion and soliciting a bribe between Aug. 11, 2009, and Dec. 22, 2009, while serving as a member of the city-county council.
“Mr. Plowman used his elected office for personal financial gain, betraying the trust placed in him by the people of Indianapolis,” said Assistant Attorney General Breuer. “Today’s sentencing shows that public corruption has a steep price. It weakens democratic institutions and undermines the public’s confidence in government. We are determined to continue holding accountable those officials who abuse their positions.”
“Today’s sentencing serves as a warning throughout Indianapolis and across Indiana that our public offices are not for sale,” U.S. Attorney Hogsett said. “Although this tragedy saddens us all, it would be an even greater tragedy if such violations of the public trust went undiscovered and unpunished.”
"The American people have a right to expect honest services from their public officials, and FBI Indianapolis will continue to aggressively investigate those officials who violate the public trust," said FBI Special Agent in Charge Robert J. Holley of the FBI’s Indianapolis Division.
According to evidence presented at trial, Plowman solicited an undercover FBI agent to pay $5,000 in cash and to make a $1,000 campaign contribution for Plowman’s benefit. In exchange for the payments, Plowman offered official actions and influence to facilitate the opening of a strip club in Indianapolis. At the time of the crimes, Plowman was a member of the metropolitan development committee of the city-county council. He was also a major with the Indianapolis Metropolitan Police Department.
Evidence at trial also showed that Plowman had previously accepted bribes from an existing strip club that was part of a national chain ; in exchange , he provided official acts and influence against legislation to ban smoking at clubs in Indianapolis. The evidence showed that the chain feared that legislation would become a model for other jurisdictions.
The case was prosecuted by Senior Trial Attorney Richard C. Pilger of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Joe H. Vaughn for the Southern District of Indiana. The case was investigated by the FBI.
Fifth Cooperating New Orleans Police Officer Sentenced in Danziger Bridge CaseRead the Press Release
WASHINGTON – A former New Orleans Police Department (NOPD) officer was sentenced today to serve five years in prison for his role in covering up a police-involved shooting that occurred on the Danziger Bridge in the days after Hurricane Katrina.
Robert Barrios was one of several officers who rode in a large Budget rental truck to the Danziger Bridge on Sept. 4, 2005, where officers engaged in a shooting incident that left two civilians dead and four others seriously injured.
In April 2010, Barrios admitted that he agreed with other officers to obstruct justice during the investigations that followed the shooting. Barrios also admitted that, prior to giving a formal, audio-taped statement to NOPD investigators, he and other officers participated in a meeting with two sergeants assigned to investigate the shooting, during which the officers were instructed to get their stories straight before giving their formal statements. Barrios further admitted that he lied, in a formal NOPD statement, in order to help cover for his fellow officers, and that the purpose of the conspiracy he joined was to provide false and misleading information in order to ensure that the shootings on the bridge would appear to be legally justified and that the involved officers would therefore be shielded from liability.
Barrios is the fifth cooperating police officer to be sentenced in this case. Former Lieutenant Michael Lohman, former Detective Jeffrey Lehrmann, and former Officers Michael Hunter and Ignatius Hills are all serving federal prison sentences. The five officers who were convicted at trial – Sergeants Kenneth Bowen, Robert Gisevius, and Arthur “Archie” Kaufman; Officer Anthony Villavaso; and former Officer Robert Faulcon – are scheduled to be sentenced by U. S. District Court Judge Kurt Engelhardt on Feb. 14, 2012.
This case was investigated by the New Orleans Field Office of the FBI, and was prosecuted by Deputy Chief Bobbi Bernstein and Trial Attorney Forrest Christian of the Justice Department’s Civil Rights Division, along with Assistant U.S. Attorney Ted Carter for the Eastern District of Louisiana.
Detroit-Area Occupational Therapy Assistant Pleads Guilty to Participating in Medicare Fraud SchemeRead the Press Release
WASHINGTON – A Detroit-area occupational therapy assistant has pleaded guilty for her participation in a Medicare fraud scheme, announced the Department of Justice, FBI and Department of Health and Human Services (HHS).
Vanessa Dowell, 50, pleaded guilty yesterday before U.S. District Court Judge Avern Cohn in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. At sentencing, Dowell faces a maximum penalty of 10 years in prison and a $250,000 fine.
According to the plea documents, Dowell was an uncertified occupational therapy assistant who worked for Jos Campau Physical Therapy, which purported to provide physical and occupational therapy services. In 2005, Dowell was hired by a co-defendant to create and sign falsified occupational therapy files for Jos Campau Physical Therapy, which was owned and operated by two co-defendants. Dowell purported to be a certified occupational therapy assistant and fabricated and signed patient notes for occupational therapy services that she claimed she had provided. In fact, the services were never provided. Furthermore, as an unsupervised and uncertified assistant, Dowell was not permitted to perform the occupational therapy services.
Between approximately June 2005 and May 2007, Dowell and her co-conspirators at Jos Campau submitted or caused the submission of fraudulent physical therapy and occupational therapy claims to the Medicare program. Dowell personally submitted or caused to be submitted approximately $807,760 in claims for occupational therapy services that were never provided.
This guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.
This case is being prosecuted by Trial Attorney Catherine K. Dick of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since their inception in March 2007, the strike force operations in nine districts have charged more than 1,140 individuals who collectively have falsely billed the Medicare program for more than $2.9 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Barrio Azteca Gang Associates Plead Guilty in El Paso, Texas, to Racketeering ConspiracyRead the Press Release
WASHINGTON – Two associates of the Barrio Azteca (BA) gang have pleaded guilty to racketeering conspiracy, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Robert Pitman for the Western District of Texas, FBI Assistant Director of the Criminal Investigative Division Kevin Perkins and Administrator Michele M. Leonhart of the U.S. Drug Enforcement Administration (DEA).
Yesterday, Fabian Rodriguez, 35, aka “Shamoo,” of El Paso, Texas, and today Mexican national Juan Manuel Viscaino Amaro, 41, aka “Porky,” pleaded guilty before U.S. Magistrate Judge Norbert J. Garney in the Western District of Texas, El Paso Division, to racketeering conspiracy.
According to court documents, Rodriguez and Amaro were associates of the BA, which began in the late 1980s as a violent prison gang and has expanded into a transnational criminal organization. The BA is primarily based in West Texas; Juarez, Mexico; and throughout state and federal prisons in the United States and Mexico. The gang has a militaristic command structure and includes captains, lieutenants, sergeants, soldiers and associates such as Rodriguez and Amaro – all with the purpose of maintaining power and enriching its members and associates through drug trafficking, money laundering, extortion, intimidation, violence, threats of violence and murder.
According to court documents, members and associates of the BA have engaged in a host of criminal activity committed since Jan. 1, 2003, including drug trafficking, extortion, money laundering, kidnapping and murder, including the March 13, 2010, murders in Juarez of U.S. consulate employee Leslie Ann Enriquez Catton, her husband Arthur Redelf and Jorge Alberto Salcido Ceniceros, the husband of a U.S. Consulate employee.
The BA profits by importing heroin, cocaine and marijuana into the United States from Mexico. Gang members and associates also allegedly charge a “street tax” or “cuota” on businesses and criminals operating in their turf. These profits are used to support gang members in prison by funneling money into prison commissary accounts of gang leaders and to pay for defense lawyers or fines. The “cuota” profits are also allegedly reinvested into the organization to purchase drugs, guns and ammunition.
During the plea hearings, Rodriguez and Amaro admitted to working with the BA in buying and selling illegal drugs on the streets of El Paso and that the gang extorted money from drug dealers operating on the gang’s turf.
According to Rodriguez’s plea agreement, he faces a maximum penalty of life in prison and a $250,000 fine. Under Amaro’s plea agreement, if approved by U.S. District Court Judge Kathleen Cardone, he will receive a 12 year prison term. Sentencing dates for the defendants have not been scheduled.
Thirty-five members and associates of the BA gang, including Rodriguez, Amaro and 11 others who have pleaded guilty, were charged in a third superseding indictment unsealed in March 2011 with various counts of racketeering, murder, drug offenses, money laundering and obstruction of justice. Trial is set to begin April 6, 2012.
The case is being prosecuted by Trial Attorney Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Brian Skaret of the Criminal Division’s Human Rights and Special Prosecutions Section and the U.S. Attorney’s Office of the Western District of Texas - El Paso Division. The U.S. Attorney’s Office for the District of New Mexico provided significant assistance in this case, including Assistant U.S. Attorney Sarah Davenport. Valuable assistance was provided by the Criminal Division’s Offices of International Affairs and Enforcement Operations.
The case was investigated by the FBI. Special assistance was provided by the DEA; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Immigration and Customs Enforcement; the U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Diplomatic Security Service; the Texas Department of Public Safety; the Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, N.M., Sheriff’s Office; Las Cruces, N.M., Police Department; Southern New Mexico Correctional Facility and Otero County Prison Facility New Mexico.
Alabama Doctor Pleads Guilty; Husband Convicted of Tax FraudRead the Press Release
WASHINGTON – William Paul, formerly of Montgomery, Ala., was convicted today by a federal jury in Montgomery on four counts of tax evasion for the tax years 2004 through 2007, and of one count of failing to file a tax return, the Justice Department and Internal Revenue Service (IRS) announced. Pauls’ wife, Donna Paul, a board-certified rheumatologist, pleaded guilty to one count of tax evasion and one count of filing a false federal income tax return on Nov. 16, 2011.
According to evidence introduced at trial, Donna and William Paul owned and operated a medical practice in Montgomery. The Pauls attempted to evade the assessment and payment of Donna Paul’s income by falsely characterizing her income as loans, by making false statements to IRS employees, and by deliberately causing the non-profit organizations to not file tax returns. Evidence further showed that Donna Paul did not timely file federal individual income tax returns for the years 2004 through 2007. On April 5, 2011, the day IRS-Criminal Investigation special agents arrested her, Donna Paul filed four false tax returns for tax years 2004 through 2007. She testified at trial that each tax return did not include the money she earned from her medical practice.
Based on testimony at trial, William Paul had not filed a federal income tax return since the 1980s. Donna Paul also testified that William Paul ran the business side of the medical practice, initially called “Rheumatology Specialists of Central Alabama,” then “Rheumatology Specialists Arthritis and Osteoporosis Center,” then “Children and Adult Arthritis and Osteoporosis Center.”
Donna Paul faces a potential maximum of eight years in prison and a fine of up to $500,000. William Paul faces a potential maximum of 21 years in prison and a fine of up to $1.1 million.
John A. DiCicco, Principal Deputy Assistant Attorney General for the Justice Department’s Tax Division, and George L. Beck Jr., U.S. Attorney for the Middle District of Alabama, made the announcement.
This case was investigated by IRS-Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Justin Gelfand and Michael Boteler.
More information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax.
Washington State Man Convicted of Filing $20 Billion in False Liens Against Former US Attorney and Other Federal OfficialsRead the Press Release
WASHINGTON—Ronald James Davenport, of Chewelah, Wash., was convicted Tuesday of filing more than $20 billion in false liens against four federal government officials, the Justice Department and the Treasury Inspector General for Tax Administration (TIGTA) announced today. A federal jury in the Eastern District of Washington in Spokane returned guilty verdicts on all four counts of filing false retaliatory liens against government officials. The conviction came after a two-day trial before Judge Garr M. King of the District of Oregon, sitting in Spokane by special designation.
According to the evidence presented at trial, in December 2009, Davenport filed false liens against the then-U.S. Attorney and the Clerk of Court for the Eastern District of Washington, as well as an Assistant U.S. Attorney and an Internal Revenue Service Revenue officer. The liens were filed in the public records of Spokane County and Whatcom County, Wash. The defendant claimed in each lien that the victim owed him $5.184 billion and purported to attach all of the victim’s real and personal property as security for this debt. As proved at trial, the defendant chose these four victims on account of their service as government officials, namely their involvement in a civil lawsuit against Davenport for about $270,000 in unpaid tax liabilities.
Following his conviction, Davenport faces a potential maximum sentence of 40 years in prison and a fine of up to $1 million. Judge King has not set a sentencing date.
The case was investigated by TIGTA and prosecuted by Trial Attorneys Brian D. Bailey and Hayden M. Brockett of the Justice Department’s Tax Division. Both the U.S. Attorney’s Office and the District Court for the Eastern District of Washington were recused from the case.
Two New Jersey Dietary Supplement Firms and Their Principals Sentenced for Criminal ContemptRead the Press Release
WASHINGTON – New Jersey-based dietary supplement companies Quality Formulation Laboratories Inc. (QFL) and American Sports Nutrition Inc. (ASN), as well as their owner, Mohamed S. Desoky, and managers, Ahmad Desoky Esq., and Omar Desoky, were sentenced today for multiple counts of criminal contempt of court for violating a consent decree entered by the U.S. District Court for the District of New Jersey on March 16, 2010, the Justice Department announced.
The defendants’ businesses manufactured and distributed food products and supplements, including many varieties of protein powder mixes sold in health food stores, as well as other powder mixes and dietary supplements. The defendants’ products were distributed under the ASN brand to locations throughout the United States.
U.S. District Court Chief Judge Garrett E. Brown Jr. sentenced Mohamed S. Desoky to a term of 40 months in prison, three years supervised release and a fine of $60,000; Ahmad Desoky Esq., to a term of 34 months in prison, three years supervised release and a fine of $12,000; and Omar Desoky to a term of 34 months in prison and three years supervised release. In addition, Judge Brown ordered QFL and ASN to pay criminal fines totaling $1 million, and placed them on probation for a period of three years. All defendants, the individuals and the corporations, were prohibited from doing business in the dietary supplement industry during their periods of supervised release or probation unless they first obtained consent of the U.S. Food and Drug Administration and the Court. Ahmad Desoky was barred from practicing law during his period of supervised release. In imposing sentence, the court commented that defendants’ criminal contempt was unique in its persistence and scope.
The complaint in the civil case that led to the court order alleged that the defendants, which included Mohamed S. Desoky, QFL and ASN, adulterated food by manufacturing them without following the Food and Drug Administration’s (FDA) regulations regarding current good manufacturing practice (CGMP) requirements.
The complaint alleged that the defendants caused misbranding of food because the food contained milk, a major food allergen, not declared on the product labels. The civil complaint went on to allege that defendants’ failure to have adequate sanitizing and cleaning operations and follow their own procedures for manufacturing products on dedicated equipment may have led to food being contaminated with this major food allergen by virtue of “cross-contamination” or “cross-contact” in the manufacturing process.
The civil complaint also alleged that during an FDA inspection of the defendant’s facility in January 2009, FDA investigators observed a dead rodent—cut in half—on a blender motor platform; a dead rodent, surrounded by rodent excreta pellets, in an area used to store near-finished product; and, on two occasions, a live rodent running through the blending room.
The consent decree that settled the civil action required that defendants shut down their manufacturing operation and not reopen there or elsewhere without first correcting these violations and getting FDA’s approval to reopen. The criminal contempt charges alleged that Ahmad Desoky and Omar Desoky, with knowledge of the court’s order, assisted their father, Mohamed S. Desoky, in violating the order, and thus were criminally liable for the violations even though they were not named as defendants in the original civil case.
“After the FDA found egregious sanitation and manufacturing problems at the defendants’ facility, we obtained a court order requiring the defendants to clean up their act,” said Tony West, Assistant Attorney General of the Civil Division of the Department of Justice. “Instead of complying with that order, the defendants thumbed their nose at it and continued distributing product. The court’s appropriately stiff sentences in this case make clear the lesson: If you jeopardize the health and safety of the American people, we will hold you accountable.”
The petition for criminal contempt charged all five defendants with violating the decree almost immediately upon its entry by setting up operations at a separate location in Congers, N.Y., to which they transported their employees and equipment. In addition, the petition alleged that the defendants violated the decree by failing to notify FDA of this relocation of their operations. On June 1, 2011, a jury found all five defendants guilty of these charges.
The petition also alleged that QFL, Mohamed S. Desoky, Ahmad Desoky and Omar Desoky continued receiving and manufacturing operations at their Paterson. N.J., facility despite the court’s order. These defendan ts were found guilty of this charge as well.
Finally, the petition alleged that QFL, Mohamed S. Desoky, and Ahmad Desoky received and distributed product at their Paterson facility between September 2010 and January 2011, in violation of the court’s order. The jury found these defendants guilty of this count.
Assistant Attorney General West thanked the FDA for the referral of the civil case and the diligent investigation of the ensuing violations of the court’s order.
The prosecution of these defendants was handled by Department of Justice, Civil Division, Consumer Protection Branch Trial Attorneys David Sullivan and Patrick Runkle, and District of New Jersey Assistant U.S. Attorney Howard Wiener. The FDA Office of Chief Counsel Attorney Shannon Singleton supported the matter, which was investigated criminally by the FDA Office of Criminal Investigations, Jersey City Branch, and civilly by the FDA New Jersey District Office.
Taiwan Aftermarket Auto Lights Manufacturer and Its Chairman Indicted for Participation in Price-Fixing ConspiracyRead the Press Release
WASHINGTON – A federal grand jury in San Francisco returned a superseding indictment yesterday against a Taiwan aftermarket auto lights manufacturer, its U.S.-based subsidiary distributor and its chairman for participating in an international conspiracy to fix the prices of aftermarket auto lights, the Department of Justice announced. Aftermarket auto lights are incorporated into an automobile after its original sale, often as repairs following a collision or as accessories and upgrades.
The one-count felony superseding indictment, filed today in U.S. District Court in San Francisco, charges that Eagle Eyes Traffic Industrial Co. Ltd., which is based in Tainan County, Taiwan, participated in a conspiracy to fix the prices of aftermarket auto lights in the United States and elsewhere from about July 2001 to about September 2008. The indictment also charges Eagle Eyes’ highest-ranking officer, Chairman Yu-Chu Lin, aka David Lin, for his participation in the conspiracy from about July 2001 to about September 2008. Lin is a resident of Taiwan. E-Lite Automotive Inc., Eagle Eyes’ U.S. subsidiary based in Chino, Calif., is also charged in the indictment for its participation in the conspiracy from about March 2006 to about September 2008. Today’s indictment supersedes an indictment filed on July 19, 2011, against the second-highest-ranking officer of Eagle Eyes, Vice Chairman Homy Hong-Ming Hsu.
“The Antitrust Division will continue to crack down on international price-fixing conspiracies that target U.S. businesses and consumers,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.
According to the indictment, Eagle Eyes, E-Lite, Lin, Hsu and co-conspirators participated in a conspiracy in which the participants met and agreed to charge prices of aftermarket auto lights according to jointly determined formulas. The participants in that conspiracy issued list price announcements to customers in accordance with the jointly determined price structure, and collected and exchanged information on prices for the purpose of monitoring and enforcing adherence to the conspiracy. The department said that the conspirators met in Taiwan and the United States for their discussions.
Including Eagle Eyes, E-Lite and Lin, four companies and four individuals have been charged to date in connection with the department’s ongoing investigation into the aftermarket auto lights industry. On Nov. 15, 2011, Maxzone Vehicle Lighting Corp., a U.S. distributor of aftermarket auto lights, pleaded guilty and was sentenced to pay a $43 million criminal fine for its participation in the conspiracy. On Oct. 4, 2011, Sabry Lee (U.S.A.) Inc., a U.S. distributor of aftermarket auto lights, pleaded guilty and was sentenced to pay a $200,000 criminal fine for its participation in the conspiracy. On March 29, 2011, Polo Shu-Sheng Hsu, the former president and CEO of Maxzone, was sentenced to serve 180 days in prison and to pay a $25,000 criminal fine for his role in the conspiracy. Chien Chung Chen, aka Andrew Chen, the former executive vice president of Sabry Lee, pleaded guilty for his participation in the conspiracy on June 7, 2011. He is currently scheduled to be sentenced on July 17, 2012.
Eagle Eyes, E-Lite and Lin are charged with price fixing in violation of the Sherman Act which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and $100 million fine for corporations. The maximum fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
This case is part of an ongoing joint investigation being conducted by the Department of Justice Antitrust Division’s San Francisco Office and the FBI in San Francisco. Anyone with information concerning illegal or anticompetitive conduct in the aftermarket auto lights industry is urged to call the Antitrust Division’s San Francisco Field Office at 415-436-6660 or visit www.justice.gov/atr/contact/newcase.htm.
Pompano Beach, Fla.-Area Assisted Living Facility Owner Pleads Guilty to Fraud and Kickback SchemeRead the Press Release
WASHINGTON – The owner and operator of a Pompano Beach, Fla.-area assisted living facility pleaded guilty today for his role in a Medicare fraud kickback scheme that funneled patients through a fraudulent mental health company and a Medicaid fraud scheme that billed for assisted living services that were never provided, announced the Department of Justice, the FBI, the Department of Health and Human Services (HHS) and the Medicaid Fraud Control Unit (MFCU) of the Florida Office of the Attorney General.
Joseph B. Williams, 41, pleaded guilty before U.S. District Judge Jose E. Martinez in Miami to two counts of conspiracy to commit health care fraud. Williams was the owner and operator of Avondale Manors Retirement Home, an assisted living facility operating in Pompano Beach, and a company called Diversified Marketing Group Inc.
Williams admitted that in exchange for illegal health care kickbacks, he agreed to provide Medicare beneficiaries who resided at Avondale to American Therapeutic Corporation (ATC) for intensive mental health treatment called partial hospitalization program services. ATC purported to operate partial hospitalization programs in seven different locations throughout south Florida and Orlando. According to court documents, Williams was paid approximately $30 per beneficiary per day the beneficiary attended ATC. ATC paid the kickbacks mostly by check made out to Diversified.
According to his plea, Williams knew that ATC fraudulently billed Medicare for the partial hospitalization program treatment that his referrals purportedly received.
According to court documents, ATC’s principals paid kickbacks to owners and operators of assisted living facilities and halfway houses and to patient brokers in exchange for delivering ineligible patients to ATC and its related company, the American Sleep Institute (ASI). In some cases, the patients received a portion of those kickbacks. Throughout the course of the ATC conspiracy, millions of dollars in kickbacks were paid in exchange for Medicare beneficiaries who did not qualify for partial hospitalization program services. Ultimately, ATC and ASI billed Medicare for more than $200 million in medically unnecessary services.
Williams also admitted that he billed Medicaid for assisted living services purportedly provided at Avondale when, in fact, those services were never provided. Williams paid owners and operators of halfway houses to obtain the personal identifiers of Medicaid enrollees who resided in those halfway houses and used that information to bill Medicaid fraudulently. Williams also billed Medicaid for assisted living services provided to residents of Avondale at times when they were not receiving any services.
According to the plea agreement, Williams’s participation in the fraud resulted in more than $2 million in fraudulent billing to the Medicare and Medicaid programs. At sentencing, scheduled for Feb. 8, 2012, Williams faces a maximum of 10 years in prison and a $250,000 fine for each count.
ATC, its management company Medlink Professional Management Group Inc., and various owners, managers, doctors, therapists, patient brokers and marketers of ATC, Medlink and ASI, were charged with various health care fraud, kickback, money laundering and other offenses in two indictments unsealed on Feb. 15, 2011. ATC, Medlink and nine of the individual defendants have pleaded guilty or have been convicted at trial. Other defendants are scheduled for trial April 9, 2012, before U.S. District Judge Patricia A. Seitz.
Today’s guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; John V. Gillies, Special Agent-in-Charge of the FBI’s Miami field office; and Special Agent-in-Charge Christopher B. Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
The case is being prosecuted by Trial Attorneys Steven Kim and Jennifer L. Saulino of the Criminal Division’s Fraud Section. The case was investigated by the FBI, HHS-OIG and MFCU and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force operations in nine locations have charged more than 1,140 defendants that collectively have billed the Medicare program for more than $2.9 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Ohio Insurance Salesman Arrested on Tax ChargesRead the Press Release
WASHINGTON - William A. Herder of Mifflin Township, Ohio, was arrested today on federal tax charges, the Justice Department and Internal Revenue Service (IRS) announced. On Nov. 9, 2011, a federal grand jury sitting in Cleveland returned an indictment against Herder, charging him with corruptly endeavoring to impair and impede the due administration of the internal revenue laws, tax evasion and failure to file tax returns.
According to the indictment, Herder, an insurance salesman, has not filed a timely or valid tax return in more than a decade. For the 2000 tax year, Herder allegedly filed a tax return on which he falsely claimed that he had not earned any income. Herder failed to file any tax returns for the 2001-2009 tax years, despite receiving numerous warnings and notices from the IRS.
The indictment further alleges that, to prevent the IRS from collecting his unpaid taxes, Herder attempted to conceal his assets and income. In 2003, Herder allegedly transferred title to his house to a fake foundation he established in Utah called the “Mentor Foundation.” Herder cashed out an Individual Retirement Account and a life insurance policy to further frustrate IRS collections activity. Herder also allegedly attempted to use a fake financial instrument to pay his taxes for the years 2000-2002 as well as a civil penalty that the IRS assessed against him for the year 2000.
In addition to failing to file valid tax returns and hiding his assets from the IRS, the indictment alleges, Herder submitted numerous obstructive letters and documents to the IRS and the companies for whom he sold insurance in an effort to prevent the IRS from assessing and collecting his taxes. In these letters, Herder falsely claimed, among other things, that the tax laws were not applicable to him.
This case is being prosecuted by Trial Attorneys Melissa S. Siskind and Sean R. Delaney of the Justice Department’s Tax Division.
An indictment is only an allegation of criminal conduct and is not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
More information about the Tax Division and its enforcement efforts is available at www.usdoj.gov/tax/.
Member of Aryan Brotherhood Sentenced to 450 Months in Prison in Connection with Hate Crime Involving Church Arson and Attempted Murder of Disabled African-American in TexasRead the Press Release
WASHINGTON – Steven Scott Cantrell, 26, of Crane, Texas, was sentenced today for hate crime charges stemming from a series of racially-motivated arsons in December 2010, including the arson of a historic African-American church as part of an effort to murder a disabled African-American man, the Justice Department announced today.
Cantrell was sentenced to 450 months in prison by U.S. District Judge Robert A. Junell in Midland, Texas, after pleading guilty to damaging religious property and interfering with housing rights in violation of federal hate crime laws. Cantrell was also ordered to pay $550,780 in restitution to the victims.
Cantrell admitted that on Dec. 28, 2010, he set fire to Faith in Christ Church, a predominantly African-American church, as part of an effort to murder a disabled African-American man who he saw passing by the church in his wheelchair. Cantrell admitted that he started the fire intending to kill the disabled African-American man whom he believed lived at a shelter within the church. The man was not hurt. Cantrell ransacked the church, wrote a series of threatening and racist messages in large letters across the wall of the church next to the pastor’s office, and “tagged” the church with references to the Aryan Brotherhood.
The arson of Faith in Christ Church was part of a series of racially-motivated arsons that Cantrell perpetrated that day in his attempt to gain status with the Aryan Brotherhood of Texas. In addition to the church, Cantrell admitted that he set fire to the house of another man in the community because he believed that man to be Jewish and because he sought to injure, intimidate or interfere with that man’s right to rent or occupy that house. Cantrell also admitted to setting fire to Craig’s Gym in violation of federal arson laws. At his plea hearing, Cantrell acknowledged that he set fire to Craig’s Gym because he believed the owners served Mexican-Americans and African-American patrons and because the gym was owned by a Caucasian man married to a woman of Mexican descent. Cantrell added that he felt “disrespected” by a Caucasian man marrying a woman of Mexican descent because he believed “the white race needed to be kept pure.”
“Today’s sentence reflects the vile nature of this defendant’s actions. Every person, regardless of race, national origin, religion or disability, should have the opportunity to live without fear of threat or harm,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The department will continue to vigorously prosecute those that commit heinous acts like this one.”
“When hatred and bigotry are expressed through acts of violence and destruction, this office will use every resource available to ensure that those responsible are found, prosecuted and punished,” stated U.S. Attorney for the Western District of Texas Robert Pitman. “There is simply no room in a civilized society for the kind of conduct Cantrell engaged in.”
“Today’s sentencing represents the FBI’s commitment to prosecuting individuals responsible for committing these types of crimes,” said FBI Special Agent in Charge Mark Morgan of the El Paso, Texas, office. “The FBI will continue to aggressively investigate federal violations of this nature and prosecute those responsible to the full extent of the law. Through the cooperative efforts of the state, local and federal agencies, FBI Midland successfully completed its investigation.”
This case was jointly investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Crane Police Department; and the Texas Department of Insurance. The case was prosecuted by Trial Attorney Victor Boutros from the Justice Department’s Civil Rights Division and Assistant U.S. Attorney John Klassen for the Western District of Texas, with the cooperation of the district attorney for the 109th Judicial District of the state of Texas.
Former Executive of Peruvian Airline Pleads Guilty to Fixing Fuel Surcharge Rates on Air Cargo Shipments Following Hurricanes Katrina and RitaRead the Press Release
WASHINGTON — A former executive of a Peruvian airline pleaded guilty today for his role in a conspiracy to fix surcharges on air cargo shipments from the United States to South and Central America following Hurricanes Katrina and Rita, the Department of Justice announced.
George Gonzalez, former chief commercial officer of Cielos Airlines, a Peruvian air cargo carrier, pleaded guilty today in the Southern District of Florida to a one count charge of price fixing. On Oct. 28, 2010, Gonzalez and three other former airline executives were charged in Miami with conspiring to suppress and eliminate competition by agreeing to impose an increase to their fuel surcharges on air cargo shipped from the United States to locations in South and Central America. The indictment charged the executives with participating in the conspiracy beginning in or around late September 2005 until at least November 2005.
Air cargo carriers transport a variety of cargo shipments, such as heavy equipment, perishable commodities and consumer goods, on scheduled international flights.
On Sept. 19, 2011, two of the other indicted former airline executives pleaded guilty to the charge. Guillermo “Willy” Cabeza, former president of Arrow Air, a Miami-based air cargo carrier, and Luis Juan Soto, former president of South Winds Cargo, a Miami-based air cargo carrier, pleaded guilty to the charge and are awaiting sentencing. In connection with their pleas, Gonzalez, Cabeza and Soto have each agreed to cooperate with the department in its investigation and to pay a criminal fine.
Gonzalez, Cabeza and Soto pleaded guilty to price fixing in violation of the Sherman Act, which carries a maximum $1 million fine and up to 10 years in prison. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
A total of 22 airlines and 21 executives, including Gonzalez, Cabeza and Soto, have been charged in the Justice Department’s ongoing investigation into price fixing in the air transportation industry. To date, more than $1.8 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time.
Today’s guilty plea arose from an ongoing joint investigation into the air transportation industry being conducted by the Antitrust Division’s National Criminal Enforcement Section and the Chicago Field Office, the FBI’s field offices in Miami and Washington, D.C., the Department of Transportation’s Office of Inspector General and the U.S. Postal Service’s Office of Inspector General. Anyone with information concerning price fixing or other anticompetitive conduct in the air transportation industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.htm or call the FBI’s Miami Field Office at 305-654-1918.
Patient Recruiter Pleads Guilty in Connection with $5.4 Million Medicare Fraud Scheme in DetroitRead the Press Release
WASHINGTON – A patient recruiter pleaded guilty today for his participation in a Medicare fraud scheme operated out of three Detroit-area health care clinics, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).
Santiago Villa-Restrepo, 33, of Miami, pleaded guilty before U.S. District Judge Arthur J. Tarnow in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. At sentencing, Villa-Restrepo faces a maximum penalty of 10 years in prison and a $250,000 fine.
According to the plea documents, Villa-Restrepo recruited Medicare beneficiaries for three Detroit-area health care clinics owned by co-conspirators. In exchange for cash bribes paid by Villa-Restrepo and others, the beneficiaries agreed to attend the clinics where they provided their Medicare provider numbers and other information, which allowed the clinics to bill for diagnostic tests that were medically unnecessary, and in some cases, not provided at all. According to court documents, Medicare was billed $5.4 million for medically unnecessary diagnostic tests by the clinics associated with the scheme.
Today’s guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.
This case is being prosecuted by Assistant U.S. Attorney Philip A. Ross of the Eastern District of Michigan, with assistance from Acting Assistant Chief Benjamin D. Singer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since their inception in March 2007, the Medicare Fraud Strike Force operations in nine districts have charged more than 1,140 individuals who collectively have falsely billed the Medicare program for more than $2.9 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Owner of Houston Health Care Company Pleads Guilty to Defrauding MedicareRead the Press Release
WASHINGTON – The owner of a Houston health care company pleaded guilty today in connection with a Medicare fraud scheme involving durable medical equipment (DME), announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).
Akinsunbo Akinbile, 44, pleaded guilty before U.S. District Judge Keith P. Ellison in Houston to eight counts of health care fraud.
Akinbile admitted that he was the owner and operator of Hallco Medical Supply, a company that purported to provide DME to Medicare beneficiaries. According to court documents, Hallco submitted claims to Medicare for DME, including orthotic devices, that were medically unnecessary and/or never provided. Many of the orthotic devices were components of “arthritis kits,” and purported to be for the treatment of arthritis-related conditions. The arthritis kits generally contained a number of devices including braces for both sides of the body and related accessories such as heat pads. In total, from June 2007 through May 2009, Hallco submitted approximately $737,770 in fraudulent claims to Medicare.
At sentencing, scheduled for Feb. 15, 2012, Akinbile faces a maximum sentence of 10 years in prison.
Today’s guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; Special Agent-In-Charge Stephen L. Morris of the FBI’s Houston Field Office; Special Agent-in-Charge Mike Fields of the Dallas Regional Office of HHS’s Office of the Inspector General (HHS-OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU).
The case was prosecuted by Trial Attorney Laura M.K. Cordova and Assistant Chief Sam S. Sheldon of the Criminal Division’s Fraud Section. The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Southern District of Texas and the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,140 defendants who collectively have falsely billed the Medicare program for more than $2.9 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
MS-13 Gang Leader in San Francisco Convicted of Racketeering ChargesRead the Press Release
WASHINGTON – A federal jury today convicted Danilo Velasquez, aka “Triste,” a local leader of La Mara Salvatrucha, or MS-13, in federal court in San Francisco of racketeering conspiracy and related charges, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag for the Northern District of California and Clark Settles, Special Agent in Charge for U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Francisco. His co-defendant and fellow MS-13 member, Luis Herrera, aka “Killer,” pleaded guilty to related charges, including using a firearm that caused the murder of an individual.
After a four-week trial, the federal jury convicted Velasquez of all charges, including conspiracy to participate in a racketeering enterprise, conspiracy to commit murder in aid of racketeering, conspiracy to commit assault with a dangerous weapon in aid of racketeering, and using and discharging a firearm in connection with a crime of violence. The evidence presented during trial showed that the defendants were part of the violent, transnational gang known as MS-13, which claimed part of the Mission District of San Francisco as its territory and operated in the Bay Area since the 1990s. Since its inception, MS-13 members have warred with rival gang members and sought to extort payments from other criminals in the gang’s territory. After the federal government indicted a large number of local MS-13 members on Oct. 22, 2008, Velasquez assumed leadership on the streets and encouraged the remaining members of the gang to engage in violence in order to demonstrate their continued presence in San Francisco despite its loss in numbers due to the federal indictment.
“In a hail of gunfire, Mr. Velasquez and his co-conspirators killed and wounded four unarmed individuals – all in the name of MS-13,” said Assistant Attorney General Breuer. “Senseless acts of violence like those committed by Mr. Velasquez and his fellow gang members are too common across the United States. Through sustained enforcement, we have taken leaders of MS-13 in San Francisco and elsewhere off the streets, and we will continue our efforts to make all our communities safe from violent gangs.”
“This conviction marks the beginning of the end for one San Francisco gang leader who thought he was above the law,” said U.S. Attorney Haag. “Today, the jury has sent a strong message that senseless acts of violence like those committed by Mr. Velasquez in the name of MS-13 will not be tolerated. Life is too valuable to let someone steal it from another. Those who try will be prosecuted to the fullest extent of the law.”
“The gang members targeted in this Homeland Security Investigations-led probe were the worst of the worst, blithely using violence, intimidation and fear to maintain control over their turf,” said Special Agent in Charge Settles for ICE-HSI in San Francisco. “As this jury’s verdict makes clear, we will not allow ruthless thugs to rule our streets. We are joining forces with local law enforcement to bring these criminals to justice and take back our Bay Area neighborhoods.”
The evidence presented at trial also showed how the defendants, with others, conspired to commit a variety of crimes to further the goals of the gang, including attacking and killing rival gang members and others who defied or challenged MS-13 including four murders that occurred in 2008. The prosecution also presented evidence of three separate shootings committed by Herrera, Velasquez and other MS-13 gang members that took place within just two months, after the October 2008 indictment. One of the shootings resulted in the death of Moises Frias, a college student, in February 2009.
Evidence at trial established that on Feb. 19, 2009, Velasquez and Herrera, accompanied by MS-13 member Jaime Balam, a fugitive, went out looking to kill rival gang members in the San Francisco Bay area. Herrera drove Velasquez and Balam in a stolen vehicle, and Velasquez and Balam both carried semi-automatic guns. The evidence at trial showed that in the Excelsior District of San Francisco, Herrera and Velasquez spotted a car of young Latino professionals, including three college students, a student and a business professional. None of the individuals were gang members themselves.
Witnesses testified that Herrera, Velasquez and Balam followed the victims’ car into Daly City, boxed the car in at a red light, whereby Velasquez and Balam flanked the victims’ car carrying semi-automatic handguns. Velasquez then fired multiple shots at close range at three of the passengers, who survived largely because Velasquez’s semi-automatic gun jammed multiple times. Balam allegedly fired his weapon at the remaining passenger until he ran out of bullets. The victim suffered nine gunshot wounds, including to the head, and was killed. The survivors of the shooting testified at trial that the victim begged for the shooting to stop immediately before he died.
A few days before the shooting, Velasquez and Herrera shot and wounded two individuals in rival gang territory on Feb. 13, 2009. After the Feb. 19, 2009, murder, the evidence showed Velasquez ordered another shooting in which Herrera took part, resulting in the wounding of several victims in rival territory on March 2, 2009. The victims of all the two non-fatal shootings who testified during the trial stated that they were not gang members, but were approached by individuals who exclaimed “La Mara” before shooting them.
Herrera pleaded guilty to seven racketeering related counts, including use of a firearm causing the death of Frias. As part of his plea, Herrera admitted that he was part of the MS-13 hunting party that followed the victims’ car on Feb. 19, 2009, and murdered Frias. The evidence presented at trial before Herrera pleaded guilty showed that he was a member of MS-13 for only two to three months before being arrested. He became a member after his brother, Guillermo Herrera, aka “Sparky,” another MS-13 member, was indicted. Guillermo Herrera was recently convicted of all charges, including murder in aid of racketeering, after a five-month trial that included six other co-defendants. He faces a mandatory life sentence and will be sentenced on Dec. 7, 2011. As part of his guilty plea, Luis Herrera will receive a 35-year prison sentence when he is sentenced on Jan. 24, 2012.
Velasquez faces a maximum sentence of life in prison, with a mandatory minimum sentence of 10 years. Sentencing for Velasquez is scheduled for Feb. 14, 2012, before U.S. District Court Judge William H. Alsup.
The case is being prosecuted by Assistant U.S. Attorneys Andrew Scoble and David Hall of the Organized Crime Strike Force of the U.S. Attorney’s Office for the Northern District of California, and Trial Attorney Theryn G. Gibbons of the Criminal Division’s Organized Crime and Gang Section. The case was investigated by Daly City Police Department, led by Detective Gregg Oglesby, and ICE-HSI, led by Special Agents Alicia MacDonald and Brick Eubank .
Lafarge North America Inc. Agrees to Pay $740,000 Penalty to Resolve Clean Water Act Violations in Five StatesRead the Press Release
WASHINGTON – Lafarge North America Inc., one of the largest suppliers of construction materials in the United States and Canada, and four of its U.S. subsidiaries have agreed to resolve alleged Clean Water Act violations. The violations include unpermitted discharges of stormwater and failure to comply with stormwater permits at 21 stone, gravel, sand, asphalt and ready-mix concrete facilities in Alabama, Colorado, Georgia, Maryland and New York. Stormwater flowing over concrete manufacturing facilities can carry debris, sediment and pollutants including pesticides, petroleum products, chemicals and solvents, which can have a significant impact on water quality.
Lafarge will implement a nationwide evaluation and compliance program at 189 of its similar facilities in the United States to ensure they meet Clean Water Act requirements. Lafarge will also pay a penalty of $740,000 and implement two supplemental environmental projects, in which the company will complete conservation easements to protect approximately 166 acres in Maryland and Colorado. The value of the land has been appraised at $2.95 million. Lafarge will also implement one state environmentally beneficial project to support environmental training for state inspectors. The state project is valued at $10,000.
The comprehensive evaluation will include a compliance review of each facility’s permit, an inventory of all discharges to U.S. waters and identification of all best management practices in place. In addition, Lafarge must identify an environmental vice president responsible for coordinating oversight of compliance with stormwater requirements, at least two environmental directors and several environmental managers to oversee stormwater compliance at each operation, and an onsite operations manager at each facility. The U.S. estimates that Lafarge will spend approximately $8 million over five years to develop and maintain this compliance program.
The company will also develop and implement an extensive management, training, inspection and reporting system to increase oversight of its operations and compliance with stormwater requirements at all facilities that it owns and/or operates
“Owners and operators of industrial facilities must take the necessary measures to comply with stormwater regulations under the Clean Water Act, which protects America’s rivers, lakes and sources of drinking water from harmful contamination,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The system-wide management controls and training that this settlement requires from Lafarge and its subsidiaries will result in better management practices and a robust compliance program at hundreds of facilities throughout the nation that will prevent harmful stormwater runoff.”
“EPA is committed to protecting America’s waters from polluted stormwater runoff,” said Cynthia Giles, Assistant Administrator for the Environmental Protection Agency’s Office of Enforcement and Compliance Assurance. “Today’s settlement will improve stormwater management at facilities across the nation, preventing harmful pollutants from being swept into local waterways.”
The complaint, filed in federal court with the settlement, alleges a pattern of violations since 2006 that were discovered after several federal inspections at the company’s facilities. The alleged violations included unpermitted discharges, violations of effluent limitations, inadequate management practices, inadequate or missing records and practices regarding stormwater compliance and monitoring, inadequate discharge monitoring and reporting, inadequate stormwater pollution prevention plans and inadequate stormwater training.
The Clean Water Act requires that industrial facilities, such as ready-mix concrete plants, sand and gravel facilities and asphalt batching plants, have controls in place to prevent pollution from being discharged with stormwater into nearby waterways. Each site must have a stormwater pollution prevention plan that sets guidelines and best management practices that the company will follow to prevent runoff from being contaminated by pollutants.
Since being notified of the violations by EPA, the company has made significant improvements to its stormwater management systems.The settlement is the latest in a series of federal enforcement actions to address stormwater violations from industrial facilities and construction sites around the country. The states of Maryland and Colorado are co-plaintiffs and have joined the proposed settlement.
Lafarge is required to pay the penalty within 30 days of the court’s approval of the settlement. To view the consent decree: www.justice.gov/enrd/Consent_Decrees.html.
More information on the settlement: www.epa.gov/compliance/resources/cases/civil/cwa/lafargenorthamerica.html.
Justice Department Launches Webinar Series on Avoiding Workplace DiscriminationRead the Press Release
The Justice Department announced today the launch of a live webinar series on avoiding workplace discrimination. The webinars coincide with the 25th anniversary of the passage of the Immigration Reform and Control Act, which created the Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC).
OSC enforces the anti-discrimination provision of the Immigration and Nationality Act (INA), which requires employers to treat all authorized workers in the same manner with respect to hiring, firing or recruitment or referral for a fee, regardless of their citizenship status or national origin. The law also prohibits discrimination during the Form I-9 and E-Verify processes.
Participation in the hour-long webinars is free and open to all. The first webinar in the series will advise workers and their advocates of the protections against workplace discrimination. The webinars will begin on Dec. 6, 2011, at 3:00 P.M. EST. A webinar scheduled for 3:00 P.M. EST on Dec. 15, 2011, will advise employers and HR professionals on how to avoid workplace discrimination.
“We are excited to add webinars to our toolkit as a means of educating workers about their rights and employers about their responsibilities under the INA, and to reach these audiences nationwide.” said Thomas E. Perez, the Assistant Attorney General in charge of the Civil Rights Division. “Federal law prohibits discrimination in the employment eligibility verification process, and the Justice Department is committed to enforcing the law.”
To participate in a webinar, sign up online at www.justice.gov/crt/about/osc/webinars.php . For more information about protections against employment discrimination under the immigration law, call OSC’s worker hotline at: 1-800-255-7688 (1-800-237-2525, TDD for the hearing impaired); call OSC’s employer hotline at: 1-800-255-8155 (1-800-362-2735, TDD for the hearing impaired); send e-mail to: [email protected] ; or visit OSC’s website at www.justice.gov/crt/about/osc . If you wish to schedule a webinar for a large or specialized group, please contact OSC’s Public Affairs Specialist Terry Scott, at [email protected] . For reasonable accommodation requests relating to webinars, contact Lyn Sowdon at [email protected] .
Former Massachusetts Scientist and Businessman Sentenced to<br /> Prison for Federal Grant FraudRead the Press Release
WASHINGTON - A former Massachusetts scientist and businessman was sentenced today by U.S. District Judge Rya W. Zobel in Boston to one year and one day in federal prison for executing a fraud scheme involving a multi-million dollar federal research grant.
The sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Carmen M. Ortiz for the District of Massachusetts; William P. Offord, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) - Boston Field Office; and Theodore L. Doherty III, Special Agent in Charge of the New England Regional Office of the U.S. Department of Transportation, Office of Inspector General (DOT-OIG).
Christopher D. Willson also w as sentenced to six months of supervised release following his prison term. In addition, Willson was ordered to pay restitution of $100,000 to the Federal Transit Administration (FTA). Willson was convicted at trial in June 2011 of one count of conspiracy to defraud the United States and to commit wire fraud, six counts of wire fraud and four counts of false claims.
According to the evidence presented at trial, Willson was the chief scientist and senior vice president of a Pittsfield, Mass., company called EV Worldwide LLC (EVW). From 2000 through 2005, a federal earmark directed the FTA to transfer approximately $4.3 million to EVW through a regional transit agency called the Pioneer Valley Transit Authority (PVTA). The funds were used by EVW to develop an electric battery that would be used in public transit buses. The federal grant required EVW to match the federal funds, dollar-for-dollar, with its own resources. For every dollar EVW spent on the project, the company could seek up to 50 percent reimbursement from the FTA.
From 2004 through 2005, W illson submitted 10 fraudulent invoices in which he falsely claimed that EVW was matching the FTA funds, when in fact EVW was millions of dollars in debt and had nearly no other non-public source of funds. Evidence and testimony presented at trial also showed that Willson repeatedly contacted and met with U.S. Congressman John Olver’s office and grant officials at the FTA and PVTA to discuss the company’s claimed progress and federal grant funding, but he never informed them of the company’s financial problems. As a result of this deception, Willson fraudulently obtained more than $700,000 in federal funds for EVW.
Willson used the money to pay himself approximately $100,000, to pay EVW’s CEO Michael Armitage approximately $250,000 and to provide approximately $110,000 to fund a separate research company that he and Armitage had founded in Canada called Hydrogen Storage Media Inc., among other things.
In October 2010, Armitage pleaded guilty to one count of conspiracy, one count of false claims and one count of endeavoring to obstruct a federal audit, as well as other unrelated crimes. On Nov. 15, 2011, Armitage was sentenced by U.S. District Judge for the District of Massachusetts Michael A. Ponsor to 66 months in federal prison to be followed by five years of supervised release and was ordered to pay restitution of $4.2 million to the FTA and $215,138 to the PVTA.
The case was investigated by IRS-CI and the DOT-OIG. The Defense Contract Audit Agency also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow for the District of Massachusetts and Trial Attorney Edward J. Loya Jr. of the Criminal Division’s Public Integrity Section.
Department of Justice and Federal Trade Commission Meet with Chinese Ministry of Commerce on Merger Enforcement MattersRead the Press Release
WASHINGTON – Acting Assistant Attorney General Sharis Pozen of the Department of Justice’s Antitrust Division and Federal Trade Commission (FTC) Chairman Jon Leibowitz today met with a delegation from China’s Ministry of Commerce (MOFCOM) to discuss antitrust merger enforcement. The delegation was led by China International Trade Representative and MOFCOM Vice Minister Gao Hucheng. MOFCOM is responsible for handling reviews of mergers and acquisitions under China’s Antimonopoly Law.
This is the first high-level MOFCOM visit to the U.S. antitrust agencies since the department and the FTC signed an antitrust memorandum of understanding (MOU) with China’s three antimonopoly agencies in July 2011, to promote communication and cooperation among the antitrust enforcement agencies in both countries.
The discussion topics in today’s meeting included recent antitrust enforcement and policy developments, the role of antitrust enforcement in times of economic downturn and cooperation among the three agencies on merger enforcement issues. The three agencies developed further guidance for cooperation on investigations when one of the U.S. antitrust agencies and MOFCOM are reviewing the same merger.
Department and FTC officials said that the discussions with the delegation from MOFCOM were productive, and that they look forward to continuing their cooperative relationship.
Attorney General Holder Holds Public Hearing on Children Exposed to ViolenceRead the Press Release
WASHINGTON, D.C. – Attorney General Eric Holder’s National Task Force on Children Exposed to Violence convened its first of four public hearings to gather expert and community testimony on the epidemic of children’s exposure to violence. Recent research shows that more than 60 percent of American children have been exposed to crime, abuse and violence – many in their own homes. Ten percent of children in the United States have suffered some form of abuse or neglect and one in 16 has been victimized sexually.
The task force will hold three additional hearings this year in Albuquerque, N.M., Miami and Detroit. The task force will identify promising practices, programming and community strategies used to prevent and respond to children’s exposure to violence and will also issue a final report to the attorney general presenting its findings and comprehensive policy recommendations. The report will serve as a blueprint for preventing children’s exposure to violence and for reducing the negative effects experienced by children exposed to violence across the United States.
“As a former judge and U.S. attorney, and now as the Attorney General and the father of three teenagers, protecting and empowering our children is both a personal and professional commitment," said Attorney General Holder. “I have made protecting the most vulnerable among us – including our children – a core priority of the Justice Department and this task force brings together a wealth of experience and talent to help us find ways to improve our response to the growing problem of children exposed to violence.”
The task force is composed of 13 leading experts from diverse fields and perspectives, including practitioners, child and family advocates, academic experts and licensed clinicians. Joe Torre, Major League Baseball executive vice president of baseball operations, founder of the Joe Torre Safe at Home Foundation, and a witness of domestic violence as a child himself; and Robert Listenbee Jr., chief of the juvenile unit of the Defender Association of Philadelphia, serve as co-chairs of the task force. The full list of Task force members is located at: http://www.justice.gov/defendingchildhood/tf-members.html .
“Unprecedented numbers of children are exposed to violence, both as victims and witnesses, and they bring their experiences, feelings, learned behaviors and attitudes into their schools and communities,” said Torre. “This isn’t just a family issue; it’s also a community and national public health issue. The Defending Childhood Task Force has the welfare of our most vulnerable children at its center, and I look forward to working with my colleagues to make a significant contribution to solving this urgent problem.”
“Children who experience violence are more likely to abuse drugs and alcohol, fail in school, suffer from mental health problems and engage in delinquent and criminal behavior,” said Listenbee. “The attorney general’s task force creates a tremendous opportunity for our nation to stop this epidemic and give our children the safety and well-being they deserve, while creating a healthier society for everyone.”
Speakers at today’s hearing at the University of Maryland Francis King Carey School of Law in Baltimore, included U.S. Attorney General Holder; Sonja Sohn, founder and CEO of ReWired for Change and star of HBO’s “The Wire”; Patrick McCarthy, president and CEO of the Annie E. Casey Foundation; Nigel Cox, chair of the SAVE (Students Against Violence Everywhere) National Advisory Board; and Baltimore and area residents who have experienced family, community and other types of violence.
Details on future hearings will be available on the Defending Childhood website: www.justice.gov/defendingchildhood .
The task force is part of the attorney general’s Defending Childhood Initiative and is staffed by the National Council on Crime and Delinquency (NCCD), a nonprofit research and consulting agency.
To learn more about the task force, visit: www.justice.gov/defendingchildhood/task-force.html .
About the Defending Childhood Initiative and the Task Force
For more information about Attorney General Holder’s Defending Childhood initiative, the Defending Childhood Task Force and upcoming hearings, please visit www.justice.gov/defendingchildhood .
About National Council on Crime and Delinquency
NCCD promotes just and equitable social systems for individuals, families and communities through research, public policy and practice. For more information about NCCD, please visit www.nccd-crc.org .
Attorney General Holder Announces Campaign to Combat Demand for Counterfeit Products in Partnership with the National Crime Prevention CouncilRead the Press Release
WASHINGTON – Attorney General Eric Holder and the Department of Justice’s Bureau of Justice Assistance, in collaboration with the National Crime Prevention Council (NCPC), today announced a new public education campaign to combat the purchase and sale of counterfeit and pirated products. The campaign, launched at the White House, will educate the public on various forms of intellectual property theft, from counterfeit consumer goods and pharmaceuticals to illegal downloads and other pirated materials. The campaign will highlight the potential health, safety and economic consequences for American citizens.
Intellectual property (IP) crime refers to the violation of criminal laws that protect copyrights, patents, trademarks, other forms of intellectual property and trade secrets, both in the United States and abroad. IP crimes can destroy jobs, suppress innovation in the United States and jeopardize the health and safety of consumers. In some cases, these activities are used to fund dangerous or even violent criminal enterprises and organized crime networks.
"As our country continues to recover from once-in-a-generation economic challenges, the need to safeguard intellectual property rights – and to protect Americans from intellectual property crimes – has never been more urgent,” said Attorney General Holder. “Through this new public education campaign, we are encouraging the American people to become vigilant partners in identifying and disrupting intellectual property crimes. With their help, I am confident that we can build upon our recent successes in combating intellectual property theft, bringing criminals to justice and protecting consumers and innovators.”
“Intellectual property theft is not a victimless crime – it affects everyone and damages our economy,” said Assistant Attorney General for the Office of Justice Programs Laurie O. Robinson. “We are proud to work with the White House and NCPC toward reducing the demand for counterfeit products through educating the public about intellectual property crime.”
The campaign includes “Premonition,” a television public service announcement (PSA) created in partnership with MTV Networks that illustrates how IP thefts link to gangs and other criminal activities and “It Hurts,” an online video that demonstrates how IP theft is stealing. The campaign also includes radio and print ads as well as campaign materials delivered via social media tools – videos, podcasts and web banners. The public service announcements and other IP theft public education campaign materials can be found at www.ncpc.org/getreal.
Attorney General Holder and Assistant Attorney General Robinson were joined at today’s campaign launch by Intellectual Property Enforcement Coordinator in the Executive Office of the President Victoria Espinel, Director of Immigration and Customs at the Department of Homeland Security John Morton, Acting Deputy Secretary of Commerce Rebecca M. Blank, and President and CEO of the National Crime Prevention Council Ann M. Harkins.
More information about the Bureau of Justice Assistance and its programs is available at www.bja.gov.
The Office of Justice Programs (OJP), headed by Assistant Attorney General Laurie O. Robinson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov .
Federal Courts Order Seizure of 150 Website Domains<br /> Involved in Selling Counterfeit Goods as Part of<br /> DOJ, ICE HSI and FBI Cyber Monday CrackdownRead the Press Release
WASHINGTON – Seizure orders have been executed against 150 domain names of commercial websites engaged in the illegal sale and distribution of counterfeit goods and copyrighted works as part of Operation In Our Sites, the Department of Justice, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the ICE-led National Intellectual Property Rights Coordination Center (IPR Center), and the FBI Washington Field Office announced today.
“Through this operation we are aggressively targeting those who are selling counterfeit goods for their own personal gain while costing our economy much-needed revenue and jobs,” said Attorney General Eric Holder. “Intellectual property crimes harm businesses and consumers, alike, threatening economic opportunity and financial stability, and today we have sent a clear message that the Department will remain ever vigilant in protecting the public’s economic welfare and public safety through robust intellectual property enforcement.”
“For most, the holidays represent a season of good will and giving, but for these criminals, it’s the season to lure in unsuspecting holiday shoppers,” said ICE Director John Morton. “More and more Americans are doing their holiday shopping online, and they may not realize that purchasing counterfeit goods results in American jobs lost, American business profits stolen and American consumers receiving substandard products. And the ramifications can be even greater because the illicit profits made from these types of illegal ventures often fuel other kinds of organized crime.”
“The sale of counterfeit goods cheats consumers and robs legitimate businesses – both large and small – of the fruits of their hard-earned work,” said Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division. “We will not tolerate those who seek to profit by abusing the Internet and stealing intellectual property at the expense of authors, artists and inventors. The Department of Justice will continue to work aggressively to combat intellectual property crime.”
“The theft of intellectual property, to include the trafficking of counterfeit goods, creates significant financial losses,” said FBI Section Chief Zack Miller of the Cyber Division. “The FBI aggressively pursues intellectual property enforcement through traditional investigative methods, intelligence initiatives and coordinated efforts with private industry and domestic and foreign law enforcement partners.”
The 150 seized domains are in the custody of the federal government. Visitors to the sites will now find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them that willful copyright infringement is a federal crime.
During this operation, federal law enforcement agents made undercover purchases of a host of products, including professional sports jerseys, golf equipment, DVD sets, footwear, handbags and sunglasses, representing a variety of trademarks from online retailers who were suspected of selling counterfeit products. In most cases, the goods were shipped directly into the United States from suppliers in other countries. If the trademark holders confirmed that the purchased products were counterfeit or otherwise illegal, seizure orders for the domain names of the websites that sold the goods and associated websites were obtained from federal magistrate judges.
This operation is the eighth phase of Operation In Our Sites, a sustained law enforcement initiative to protect consumers by targeting counterfeit and piracy on the Internet. This is the second year that a phase of Operation In Our Sites has coincided with Cyber Monday. In November 2010, 82 websites were seized during the Cyber Monday-related operation.
Since the operation’s June 2010 launch, the IPR Center has seized a total of 350 domain names, and the seizure banner has received more than 77 million individual views.
Of the 350 domain names seized, 116 have now been forfeited to the U.S. government. The federal forfeiture process affords individuals who have an interest in the seized domain names a period of time after the “Notice of Seizure” to file a petition with a federal court and additional time after the “Notice of Forfeiture” to contest the forfeiture. If no petitions or claims are filed, the domain names become property of the U.S. government.
Additionally, a public service announcement (PSA), launched in April 2011, appears on each of the 116 forfeited domain names. This video educates the public about the economic impact of trademark counterfeiting and copyright infringement.
The operation was spearheaded by the IPR Center in coordination with the FBI’s Washington Field Office, the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division and eight U.S. Attorneys’ Offices, including the District of Maryland, Southern District of Texas, Western District of Texas, District of Minnesota, Eastern District of Michigan, Eastern District of Louisiana and District of Colorado.
The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. The IPR Center uses the expertise of its 19 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public’s health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the IPR Center, visit www.IPRCenter.gov.
The enforcement actions announced today are one of many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce/.