District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Pharmaceutical Marketer Sentenced for Compounded Medications Fraud SchemeRead the Press Release
A Texas pharmaceutical marketer was sentenced today to two years and five months in prison and ordered to pay over $59 million in restitution for conspiring to defraud the United States, receiving illegal kickbacks in exchange for compounded medications prescription referrals, and money laundering.
According to court documents and evidence presented at trial, Quintan Cockerell, 43, of Palos Verdes Estates, California, worked with others to create and market expensive compounded medications, which are intended to be custom-tailored to individual patient needs, that were not medically indicated. Cockerell and others used preloaded prescription pads that identified the high-billing formulations for doctors to easily select. Cockerell, along with his co-conspirators at the compounding pharmacy that received the fraudulent prescriptions, implemented “standing orders” that enabled the pharmacy to swap out ingredients in the medications originally prescribed by doctors to maximize insurance reimbursements. Cockerell and others recruited doctors to write prescriptions for these expensive compounded medications by creating so-called “investment opportunities” so that doctors who wrote prescriptions to the pharmacy could profit from pharmacy operations. Cockerell and others also took doctors on expensive and lavish trips to Las Vegas, Mexico, and the Grand Caymans, among other places.
In an effort to conceal the illegal kickbacks Cockerell received in exchange for prescription referrals, the pharmacy paid Cockerell’s wife at the time as a sham employee. Evidence presented at trial demonstrated that Cockerell’s wife did not work at the pharmacy, but that Cockerell communicated with the pharmacy using her email address and received checks for his kickbacks in her name. Cockerell then spent the proceeds from the kickback scheme.
In October 2023, a federal jury in the Northern District of Texas convicted Cockerell of one count of conspiracy to defraud the United States, one count of receiving kickbacks, and one count of money laundering.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Michael Mentavlos of the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS); Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office; Special Agent in Charge B. Chad Yarbrough of the FBI Dallas Field Office; Special Agent in Charge Casey Howard of the Department of Labor Office of Inspector General (DOL-OIG) Central Regional Office; and Special Agent in Charge Kris Raper of the Department of Veterans Affairs Office of Inspector General (VA-OIG) South Central Field Office made the announcement.
DCIS, HHS-OIG, FBI, DOL-OIG, and VA-OIG investigated the case.
Assistant Chiefs Kate Payerle and Brynn Schiess and Trial Attorneys Jacqueline DerOvanesian and Lee Michael Hirsch of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Justice Department Meets with International Partners to Enhance Cooperation to Counter Racially or Ethnically Motivated Violent ExtremismRead the Press Release
Racially or ethnically motivated violent extremism (REMVE) is a serious global threat. REMVE attacks and transnational linkages are increasing, and new threats are emerging posed by technological changes and Russia-linked actors developing and spreading false narratives on REMVE in Ukraine. The international community has developed strong coordination and cooperation over the last 20 years to counter terrorist groups and networks, such as al-Qa’ida and ISIS. There is not yet the same type of routine information sharing for REMVE threats.
To address this gap in international cooperation, the Justice Department’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) and U.S. Department of State’s Bureau of Counterterrorism (State CT) co-hosted the third annual meeting of the Counterterrorism Law Enforcement Forum (CTLEF) in The Hague on July 10 and 11. The CTLEF gathered law enforcement, prosecutors, and other criminal justice practitioners from around the world to discuss how to effectively address and counter REMVE threats. The CTLEF increased the participants’ shared understanding of REMVE global activity, including the overlap between anti-government and conspiracy theorist movements. This meeting, which builds on the conversations that participants had in the first two forums in Berlin and Oslo in 2022 and 2023, respectively, reflects the type of cooperation that will be needed in the coming years as REMVE threats continue to build their transnational ties. The CTLEF continues to serve as a locale to begin building lines of communication between like-minded law enforcement and other partners and practitioners around the world who are working on combating REMVE.
Assistant Attorney General (AAG) Matthew G. Olsen of the Justice Department’s National Security Division delivered opening remarks, along with U.S. Deputy Coordinator for Counterterrorism Ian Moss. AAG Olsen discussed the Justice Department’s efforts to combat heightened threats from domestic violent extremists, including those who cite the ongoing conflict in the Middle East as inspiration in targeting Jewish and Muslim Americans. AAG Olsen also highlighted the importance of international law enforcement cooperation to confront the increased transnational connections among REMVE actors, many of whom spread their violent ideologies across borders, including through their use of social media and online gaming platforms.
OPDAT Director Faye Ehrenstamm, along with Deputy Director for Counterterrorism Jill Rose, delivered closing remarks after both days of the CTLEF. Director Ehrenstamm noted the importance of international cooperation to combat the REMVE threat, especially considering new threats from rapid technological changes and Russia-linked false REMVE narratives in Ukraine.
Participants came from numerous like-minded countries in Europe, North and South America, the Pacific Rim (Australia and New Zealand), and South Africa, as well as specialists from Europol, INTERPOL, the European Union, Global Counterterrorism Forum, Organization for Security and Cooperation in Europe, United Nations Office on Drugs and Crime, International Institute for Justice and the Rule of Law, and other multilateral organizations.
For more information about OPDAT’s capacity building efforts around the world, visit www.justice.gov/criminal-opdat.
Jury Convicts Two Executives in Longstanding Antitrust Conspiracy to Fix Prices, Rig Bids and Allocate Markets for ConcreteRead the Press Release
A jury convicted Gregory and David Melton yesterday in the U.S. District Court in Savannah, Georgia, for their role in a conspiracy to fix prices, rig bids and allocate markets for sales of ready-mix concrete in Georgia and South Carolina. The conspiracy, which began as early as 2010 and continued until about July 2016, involved coordinating price-increase letters to customers, allocating specific jobs in the coastal Georgia area and submitting bids to customers at collusive and noncompetitive prices.
Including yesterday’s verdicts, this investigation resulted in five criminal convictions and one deferred prosecution agreement. Defendants James Pedrick, Timothy Strickland and Strickland’s company, Evans LLC, previously pleaded guilty as a part of the same conspiracy. Pedrick’s former employer, Argos USA LLC, previously entered into a deferred prosecution agreement with the Antitrust Division, admitted to its participation in the conspiracy and agreed to pay a $20 million criminal penalty.
“Concrete is essential to our nation’s infrastructure,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Today’s guilty verdicts reflect the Antitrust Division’s commitment to holding individuals accountable for cheating American consumers out of the opportunity to purchase necessary building materials free of corruption and collusion. The division and its law enforcement partners will continue to prioritize their work prosecuting individuals responsible for this illegal and unethical conduct.”
“Customers expect to receive fair value for construction materials – not to enrich unscrupulous vendors who collude to unfairly increase their profits,” said U.S. Attorney Jill E. Steinberg for the Southern District of Georgia. “This verdict makes it clear that our office and law enforcement partners will hold accountable those who violate the law to pad their bottom line.”
“Today’s verdict shows the determination of the FBI and our partners to hold accountable those who interfere with a free marketplace for consumers,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “The public should expect an open and fair market, free from corruption and collusion, with the ability to purchase essential building materials."
“Bid rigging and fraud schemes are serious criminal actions that adversely impact the competitive contracting marketplace,” said Special Agent in Charge Joseph Harris of the Department of Transportation Office of Inspector General (DOT OIG), Southern Region. “Today’s conviction should serve to deter individuals and companies from engaging in deceptive practices that violate federal regulations and the public’s trust.”
“The Justice Department’s Antitrust Division, along with our other federal law enforcement partners, secured a victory with today’s guilty verdict in our fight against bid-rigging and collusion,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service (USPS) Office of Inspector General (OIG). “The USPS OIG will vigorously investigate those who would engage in harmful anticompetitive practices, and we continue to ask for the public’s assistance in identifying and reporting those engaged in this type of activity.”
Violating the Sherman Act, which is a federal criminal antitrust statute, is a felony. The maximum penalty for individuals convicted of violating the Sherman Act is 10 years in prison and a $1 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Washington Field Office, DOT OIG and USPS OIG investigated the case.
Attorneys Patrick S. Brown and Julia M. Maloney of the Antitrust Division’s Washington Criminal Section and Assistant U.S. Attorney E. Greg Gilluly Jr. for the Southern District of Georgia prosecuted the case, with valuable assistance from Senior Litigation Counsel Gary Bell, Assistant Chief Megan Lewis and Trial Attorney Daniel A. Loveland of the Antitrust Division.
In November 2019, the Justice Department created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force.
Joint Communique from the 2024 U.S.-Canada Cross Border Crime Forum (CBCF)Read the Press Release
The United States and Canada have a longstanding and enduring security, law enforcement, and intelligence partnership that is centered on protecting public safety, consistent with rights protected by law. Yesterday, to advance our shared goals, U.S. Attorney General Merrick B. Garland and U.S. Secretary of Homeland Security Alejandro N. Mayorkas hosted Canada’s Minister of Justice and Attorney General, Arif Virani, and Canada’s Minister of Public Safety, Dominic LeBlanc, in Washington, D.C., for the U.S.-Canada Cross Border Crime Forum (CBCF). This meeting is the third CBCF since it was reestablished by President Biden’s and Prime Minister Trudeau’s 2021 “Roadmap for a Renewed U.S.-Canada Partnership.”
Building on the success of previous CBCF meetings, including the “Statement of Partnership to Prevent, Investigate, Prosecute, and Disrupt Cross-Border Crime,” which was signed at last year’s meeting, the four U.S. and Canadian officials (“the Ministers”) discussed ways to enhance collaboration in the following areas:
Foreign Interference/National Security
The Ministers acknowledged the threat from hostile foreign actors, including in the context of electoral interference. Malign actors may seek to influence outcomes and undermine public confidence in elections in many ways. They may deploy efforts to subvert democratic processes, such as engaging in cyber-attacks and other interference activities against election campaigns and election infrastructure to disrupt election processes. They may seek to influence elections, including by covertly exploiting and fueling divisions within society; and this, in turn, may also help fuel coercive activity and harassment, and threats of violence toward voters, candidates, and election personnel. Both the United States and Canada agreed that fair and secure elections are cornerstones of democracy and emphasized the need to work together to combat any threats that seek to undermine it.
Malign foreign actors also have demonstrated an intent and willingness to use insiders, computer intrusion, or other means to steal trade secrets and sensitive technologies. This global problem requires a global response, and the United States and Canada will continue to investigate and, where appropriate, prosecute espionage that threatens our economies and export control violations. In this vein, the Ministers agreed on the need to preserve the cross-border flow of data between allies and partners that is critical to our economic well-being, while maintaining the security of sensitive personal data.
The Ministers similarly reaffirmed their united front in protecting our democracies and the democratic process. A key tool in combating the threat of transnational repression, as well as malign foreign influence and interference generally, is transparency through foreign agent registries; the United States discussed the use of its Foreign Agents Registration Act and related statutes, while Canada highlighted its newly passed legislation in this area, Bill C-70, “An Act respecting countering foreign interference,” which will establish a Foreign Influence Transparency Registry and update criminal law tools to better safeguard democracy. These efforts, along with investigations and prosecutions of transnational repression-related cases, will further enhance the ability of the United States and Canada to protect those living within our borders.
Law Enforcement Cooperation and Information Sharing
The United States and Canada continue to combat the devastation caused by fentanyl and synthetic opioids by working together at disrupting the illicit supply chain, to include production and distribution and the importation of illicit precursor chemicals from China and elsewhere. Similarly, the violence wrought by firearms smuggled across the U.S.-Canada border requires continued efforts to target those responsible, including shippers and receivers, by seizing illicit firearms and tracing their origins.
Key in all these counter opioid and firearm efforts is enhanced information sharing between U.S. and Canadian law enforcement agencies, which has already led to successful operations. The Ministers applauded the advances in cooperation between U.S. and Canadian law enforcement since the last CBCF and underscored the need to build on and further operationalize prior Memoranda of Understanding (MOUs). The Ministers reaffirmed their commitment to provide clear policy direction and training to ensure that institutional policies and practices maximize information sharing within the context of each other’s laws and regulations, and in accordance with recent MOUs. They plan to continue to work together to improve the operationalization and systemization of intelligence and law enforcement sharing at the border, with the goals of supporting interdictions and investigations, countering transnational organized crime, continuing to build the global coalition against synthetic drug threats, and disrupting the synthetic opioid and firearm supply chains.
In the context of enhancing information sharing, the Ministers also discussed the challenges associated with cross-border human smuggling that is occurring in both directions, and challenges in related investigations. Accordingly, the Ministers called on their officials to continue strengthening ways to gather and share information for the detection and investigation of organized crime groups and networks that target vulnerable people and engage in human smuggling. They also tasked officials to review information sharing case studies of border incidents and identify opportunities to further improve intelligence sharing, detection, and interdiction, in order to disrupt cross-border smuggling and investigate and hold accountable those involved.
With respect to law enforcement cooperation and information sharing at the border, the Ministers also considered their respective country’s approach to providing advance notification of sex offender travel, which remains a key tool in making informed admission decisions. Both countries will seek to maximize the sharing of sex offender travel notifications, in the interest of ensuring public safety.
Online Crime and Hate Crimes
The Ministers began their discussion of online crime by acknowledging the need to maintain tightly controlled lawful access to communications content that is vital to the investigation and prosecution of serious crimes, including terrorism and online child sexual exploitation and abuse.
The Ministers then turned to collective efforts to address the increasing prevalence of online child sexual abuse material (CSAM). The Ministers noted the increase in both countries of artificial intelligence (AI)-generated CSAM and the need for international engagement to combat this threat, to include law enforcement, non-governmental organizations, the technology industry, and others.
With respect to AI more generally, the Ministers acknowledged the benefits and risks posed by AI technology. Moreover, the Ministers recognized that AI crosses over multiple government equities, including criminal law, civil rights, and antitrust law, and recommended that this continue to be a focus of study by the CBCF.
The need for strategic and coordinated engagement between and among international partners was also discussed in the context of elder fraud and romance scams. The Ministers discussed avenues available to collectively identify and disrupt such schemes to prevent further victimization.
The United States and Canada also acknowledged the ways in which hate crimes erode communities. The Ministers noted with concern the increased number of attacks motivated by anti-Semitism, Islamophobia, and other forms of bias on both sides of the border and pledged to work together to address this issue.
The Ministers also welcomed the outcomes of the strengthened collaboration between their respective Access to Justice Offices over the past year, including on strategies to overcome systemic inequality and discrimination, as part of efforts to increase access to – and strengthen confidence in – the justice system.
Conclusion
The Ministers plan to continue their close contact on all these critical issues, both in the context of the CBCF, and in other bilateral exchanges. They reiterated the strength, success, and depth of the security and law enforcement relationships along the U.S.-Canada border and the need to remain aligned.
Contacts
Jean-Sébastien Comeau
Deputy Director of Communications
Office of the Honourable Dominic LeBlanc
Minister of Public Safety, Democratic Institutions and Intergovernmental Affairs
343-574-8116
Media Relations
Public Safety Canada
613-991-0657
Chantalle Aubertin
Deputy Director, Communications
Office of the Minister of Justice and Attorney General of Canada
613-992-6568
Media Relations
Department of Justice Canada
613-957-4207
Nicole Navas Oxman
Senior Communications Advisor for International Law Enforcement/Spokesperson
U.S. Department of Justice
202-305-5625
U.S. Department of Homeland Security
Office of Public Affairs
Departments of Justice and Interior Host 2024 Tribal Justice, Safety and Wellness SummitRead the Press Release
The Justice Department and the Department of the Interior convened this year’s Tribal Justice, Safety, and Wellness Summit from July 9 – 11. The three-day virtual event featured several key presentations and panels on public safety issues taught by nationally recognized subject matter experts working in American Indian and Alaska Native communities. Hundreds of federal, state, and Tribal law enforcement officials, prosecutors, advocates, court staff, victim/witness services staff, and Tribal leaders attended the Summit.
Attorney General Merrick B. Garland provided opening remarks. He reiterated the Department’s commitment to working with Tribal partners to ensure that Tribal communities feel safe. He also discussed the Department’s efforts to address, with our federal and Tribal law enforcement partners, the public safety challenges that Tribes face, including the disproportionately high rates of violence experienced by American Indians and Alaska Natives, the crisis of missing or murdered Indigenous persons, and the devastating impact of human trafficking and drug trafficking.
“Public safety in Tribal communities is a core priority for this Department”, said Attorney General Garland. “And partnerships between federal and Tribal law enforcement are among our greatest tools to meet the many challenges that Tribes face.”
To address the crisis of missing or murdered Indigenous persons and to help families get the justice and answers they deserve, last year the Department created the Missing or Murdered Indigenous Persons Regional Outreach Program, which places five attorneys and five coordinators in designated regions across the United States to aid in the prevention of and response to missing or murdered Indigenous persons.
Summit attendees participated in a variety of panels on public safety issues within four training tracks: resources, missing or murdered Indigenous persons (MMIP), criminal justice law enforcement and prosecution, and technology.
FBI Director Chris Wray also gave opening remarks at the Summit. “Protecting Native American communities has been a priority for the FBI since our organization was founded more than a century ago,” said Director Wray. “And we remain just as committed today as we were then to combatting criminal activity on Tribal land, supporting and protecting victims, and helping Indigenous communities heal and thrive.”
Director Wray also highlighted efforts to combat the unacceptably high levels of violence that Native Americans face. For example, the FBI added two more task forces over the past year as part of the FBI’s Safe Trails Task Forces initiative, which focuses on apprehending the most dangerous and violent criminal offenders in tribal communities. Wray also announced the surge of resources to tribal areas once again this summer for Operation Not Forgotten 2024.
The Summit included presentations on the untold legal history of the Osage murders, elder abuse, environmental justice, MMIP initiatives such as the development of Tribal community response plans, law enforcement responses to sexual assault and domestic violence, and technology initiatives, such as the Tribal Access Program, to support public safety in American Indian and Alaska Native communities.
The Justice Department is committed to addressing the persistent violence endured by Native American communities and bringing justice to victims and their families. The widely attended 2024 Tribal, Justice, Safety and Wellness Summit expanded the circle of partners and the knowledge needed to strengthen public safety, health, and wellness in Tribal communities across the country.
Long Island Fisherman Sentenced for Role in Fisheries Fraud ConspiracyRead the Press Release
A Long Island, New York, fisherman was sentenced yesterday to 30 months in prison and two years of supervised release for his role in a fisheries fraud conspiracy associated with his captainship of the trawler New Age from 2014 to 2017.
In October 2023, a jury convicted Christopher Winkler, of Montauk of one count of federal criminal conspiracy, two counts of mail fraud and two counts of obstruction of justice.
On at least 200 fishing trips, Winkler targeted summer flounder (fluke) and black sea bass, and harvested those fish in excess of quotas and state trip limits. He also falsified Fishing Vessel Trip Reports for those trips.
In a related case, Bryan and Asa Gosman and the company they partially own — Bob Gossman Co. Inc. — previously pleaded guilty for their role in the fishing fraud conspiracy. In total, approximately 200,000 pounds of fluke and black sea bass were overharvested, with a conservative wholesale valuation of $750,000.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and Assistant Director Michael Henry of National Oceanic and Atmospheric Administration’s (NOAA) Office of Law Enforcement, Northeast Division made the announcement.
NOAA’s Office of Law Enforcement investigated the case as part of Operation One-Way Chandelier.
Christopher L. Hale and Kenneth Nelson of the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case, with logistical support from the U.S. Attorney’s Office for the Eastern District of New York.
Justice Department and EPA Announce $241.5M Settlement with Marathon Oil to Reduce Climate- and Health-Harming Emissions in North DakotaRead the Press Release
The Justice Department and Environmental Protection Agency (EPA) today announced a settlement with Marathon Oil Company resolving Clean Air Act violations at the company’s oil and gas production operations on the Fort Berthold Indian Reservation in North Dakota. The settlement requires that Marathon pay a civil penalty of $64.5 million, the largest ever for violations of the Clean Air Act at stationary sources, which include facilities such as oil and gas tank systems. Under the settlement agreement, Marathon will implement extensive compliance measures to achieve major reductions in harmful emissions from over 200 facilities across the state.
“This historic settlement — the largest ever civil penalty for violations of the Clean Air Act at stationary sources — will ensure cleaner air for the Fort Berthold Indian Reservation and other communities in North Dakota, while holding Marathon accountable for its illegal pollution,” said Attorney General Merrick B. Garland. “The complaint alleges that Clean Air Act violations at nearly 90 Marathon facilities resulted in thousands of tons of illegal emissions. The work that Marathon will do under this agreement will result in the equivalent of over 2.25 million tons of reduced carbon-dioxide emissions over the next five years and also eliminate nearly 110,000 tons of VOC emissions. The Justice Department will continue to vigorously enforce our environmental laws to protect the health of the American people.”
The case is the first of its kind against an oil and gas producer for violations of major source emissions permitting requirements under the Clean Air Act’s Prevention of Significant Deterioration (PSD) program. The complaint alleges that these and other Clean Air Act violations at nearly 90 Marathon facilities resulted in thousands of tons of illegal pollution, including volatile organic compounds (VOCs) and carbon monoxide, which contribute to asthma and increase susceptibility to respiratory illnesses. Additionally, greenhouse gases, including methane, were released in large quantities, contributing to climate change.
While Marathon is the nation’s 22nd largest producer of oil based on 2022 data, it is the 7th largest emitter of greenhouse gas emissions in the oil and gas industry. A large portion of these emissions come from flaring, an industry practice that combusts but also releases methane, a climate super-pollutant. The work that Marathon will do under this agreement will result in the equivalent of over 2.25 million tons of reduced carbon-dioxide emissions over the next five years, similar to the amount of reductions achieved by taking 487,000 cars off the road for one year. The settlement will also eliminate nearly 110,000 tons of VOC emissions.
“The record civil penalty and extensive compliance measures, including an innovative cap on VOC emissions, set a benchmark for the Department’s enforcement efforts at oil and gas production facilities,” said Acting Associate Attorney General Benjamin C. Mizer. “Those who are historically overburdened by pollution are the most at risk of being harmed by these emissions. The Justice Department is committed to enforcing laws such as the Clean Air Act to protect the health of everyone in the United States, including Tribal Nations and their members.”
“This landmark settlement will ensure cleaner air throughout the State of North Dakota and substantially reduce pollutants that contribute to global warming,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We are committed to taking strong action to ensure that oil and gas production operations across the nation comply with environmental laws designed to protect human health and the environment.”
“Today’s historic settlement is the most significant to date under EPA’s climate enforcement initiative as well as part of a larger effort to hold oil and gas companies accountable for widespread violations at oil and gas facilities throughout the country,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “As a result of today’s settlement, Marathon will dramatically cut its emissions, including the release of methane, a climate super-pollutant that is 25 times more potent in the near term than carbon dioxide. EPA is committed to doing everything possible to limit climate change and ensure a sustainable future.”
“This settlement is a major win for the health and future of our Tribal communities, including people and families who are often overburdened by pollution,” said KC Becker, EPA Region 8 Administrator. “As a result of the agreement, Marathon has and will continue to take comprehensive measures to come into compliance and reduce harmful emissions across hundreds of production sources. These investments will improve air quality and reduce respiratory illnesses across the Fort Berthold Indian Reservation and western North Dakota.”
The agreement requires Marathon to invest in extensive compliance measures estimated to cost $177 million, much of which will be expended by the end of 2024. The settlement requires Marathon to obtain permits with federally enforceable emissions limits at production facilities on the Fort Berthold Indian Reservation and future operations in the state of North Dakota. Compliance measures also include flare monitoring, periodic infrared camera inspections and implementation of storage tank design requirements.
These actions will significantly reduce harmful health-related emissions from 169 existing facilities on state land and on the Fort Berthold Indian Reservation, as well as at new facilities built in North Dakota. Therefore, the United States will secure pollution limits on twice the number of facilities where it investigated and alleged violations.
The complaint alleges that Marathon failed to obtain required preconstruction permits under the PSD program and operating permits under the Title V program.
The settlement is part of EPA’s National Enforcement and Compliance Initiative, Mitigating Climate Change. This initiative focuses, in part, on reducing methane emissions from oil and gas and landfill sources. Like all of EPA’s national enforcement initiatives, this initiative prioritizes communities already overburdened by pollution and other potential environmental justice concerns.
The complaint and the proposed consent decree were filed by the Justice Department’s Environmental Enforcement Section. The proposed consent decree is subject to a 30-day public comment period. It can be viewed on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.
Background
The complaint also alleges failure to comply with storage tank design, operation and maintenance requirements at 66 facilities on the Fort Berthold Indian Reservation. The settlement requires Marathon to obtain permits for its existing facilities on the Reservation and for new facilities it builds in North Dakota. These actions will cap VOC emissions at under 100 tons per year.
The settlement further requires auditor checks on Marathon’s permit applications and ongoing audits of emissions from its facilities. Marathon must temporarily stop production if facility-wide emissions limits are exceeded or if flares are not operating properly.
In addition to three other projects to reduce emissions, Marathon will purchase two infrared cameras for use by the Mandan, Hidatsa and Arikara (MHA) Nation during oil and natural gas production facility inspections.
A major part of this case is the reduction of flaring at the facility. Flaring burns harmful natural gas components such as VOCs and methane, but the process is not 100% efficient meaning that in addition to water and carbon dioxide, some methane is still released to the atmosphere. These inefficiencies, exacerbated by improper flare operation or unlit flares, result in excess emissions being released to the atmosphere and can have health impacts on the surrounding communities.
Indianapolis CPA Pleads Guilty to Participating in Illegal Tax ShelterRead the Press Release
An Indiana CPA pleaded guilty yesterday to assisting in the preparation of false tax returns on behalf of clients who participated in an illegal tax shelter.
According to court documents and statements made in court, between 2013 and 2022, Jason L. Crace prepared income tax returns for clients that claimed millions of dollars in false deductions for so-called “royalty payments.” However, as Crace knew, these “royalty payments” were merely circular flows of money designed to give the appearance of genuine business expenses. In reality, tax shelter participants sent their money to bank accounts controlled by scheme promoters, who then sent the money right back to different bank accounts that the participants controlled. In this way, tax shelter participants retained control of the money they transferred, while falsely deducting the transfers as business expenses on their tax returns. Participants’ decision regarding how much (and even whether) to pay “royalties” was driven purely by the amount of income they wanted to shelter from the IRS on their tax returns.
In total, Crace’s preparation of false tax returns claiming fraudulent “royalty” deductions caused a loss to the IRS of at least $2,532,936.
Crace is scheduled to be sentence on Jan. 14, 2025. He faces a maximum penalty of three years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Todd W. Gee for the Southern District of Mississippi made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Richard J. Hagerman, William M. Montague and Matthew C. Hicks of the Justice Department’s Tax Division and Assistant U.S. Attorney Charles W. Kirkham for the Southern District of Mississippi are prosecuting the case.
Readout of Justice Department’s Interagency Convening on Advancing Equity in Artificial IntelligenceRead the Press Release
Today, the Justice Department’s Civil Rights Division convened principals of federal agency civil rights offices and senior government officials to foster AI and civil rights coordination.
This was the third such convening hosted by the Civil Rights Division following President Biden’s Executive Order on the Safe, Secure and Trustworthy Development and Use of Artificial Intelligence (EO 14110), which tasks the Civil Rights Division with coordinating federal agencies to use our authorities to prevent and address unlawful discrimination and other harms that may result from the use of AI in programs and benefits, while preserving the potential social, medical and other advances AI may spur.
In her opening remarks, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division highlighted her recent announcement that nine cabinet-level federal agencies have joined the pledge to enforce civil rights laws in AI as new technologies become more common in daily life.
Agencies discussed their efforts to safeguard civil rights through robust enforcement, policy initiatives, rulemaking and ongoing education and outreach, including completing all 180-day actions in EO 14110 on schedule. These accomplishments include:
- Guidance to assist federal contractors in compliance with equal employment laws to promote safe AI adoption and to apply the Fair Labor Standards Act and other federal labor standards as employers use AI (Department of Labor);
- Resources for job seekers, workers, tech vendors and creators on how AI use could violate employment discrimination laws (Equal Employment Opportunity Commission);
- Guidance affirming that existing prohibitions against discrimination apply to AI’s use for tenant screening and advertisement of housing opportunities, and explained how deployers of AI tools can comply with these obligations (Department of Housing and Urban Development);
- Guidance and principles that set guardrails for the responsible and equitable use of AI in administering public benefits programs (Department of Agriculture and Department of Health and Human Services); and
- A final rule applying the nondiscrimination principles under Section 1557 of the Affordable Care Act to the use of patient care decision support tools in clinical care, and it requires those covered by the rule to take steps to identify and mitigate discrimination when they use AI and other forms of decision support tools for care (Department of Health and Human Services).
The interagency convening's attendees included Chair Charlotte Burrows of the Equal Employment Opportunity Commission, Director Melanie Fontes Rainer of the Department of Health and Human Services' Office of Civil Rights, Officer for Civil Rights and Civil Liberties Shoba Sivaprasad Wadhia of the Department of Homeland Security and Principal Deputy Assistant Secretary Diane Shelley of the Department of Housing and Urban Development. Other senior agency officials also participated.
All participants pledged to continue collaboration to protect the American public against any harm that might result from the increased use and reliance on AI, algorithms and other advanced technologies. The agencies also agreed to partner on external stakeholder engagement around their collective efforts to advance equity and civil rights in AI.
For more information, see the Civil Rights Division’s webpage, which centralizes content related to the division’s work on AI and civil rights. This resource provides information about how advanced technologies can result in unlawful discrimination and what the division can do to assist victims of discrimination. The webpage will soon also include the work on AI and civil rights from enforcement agencies throughout the federal government.
Pharmacy Owner and Associate Sentenced for Health Care Fraud and Black Market Prescription Drug Diversion SchemeRead the Press Release
A pharmacy owner and an associate were sentenced for submitting false and fraudulent claims to Medicare and California Medicaid (Medi-Cal) for prescription drugs and engaging in a black market prescription drug diversion conspiracy.
Irina Sadovsky, 54, of Calabasas, California, a pharmacist who owned Five Star RX, doing business as Five Star Pharmacy and Ultimate Pharmacy Inc., was sentenced on July 8 to two years and three months in prison. Shahriar “Michael” Kalantari, 56, of Los Angeles, was sentenced yesterday to one year and 11 months in prison.
According to court documents and evidence presented at trial, from September 2016 to April 2017, Sadovsky conspired to submit fraudulent claims to Medicare and Medi-Cal for prescription drugs that were never dispensed to beneficiaries and instead were provided to her co-conspirators to sell on the black market. Sadovsky’s co-conspirators created fraudulent prescriptions, and Sadovsky recommended the combinations of prescription drugs to be written and checked the eligibility of the patients for reimbursement.
Kalantari, who is not a medical professional, conspired with Sadovsky to defraud Medicare and Medi-Cal by generating false prescriptions. Kalantari’s co-conspirators obtained beneficiary information, which Kalantari then used to write or cause to be written false and fraudulent prescriptions for expensive prescription medication, including drugs used to treat HIV. These medications were not dispensed to patients, but rather were provided to a co-conspirator to sell on the black market.
A jury convicted Sadovsky in October 2022 of one count of conspiracy to commit health care fraud and one count of conspiracy to engage in the unlicensed wholesale distribution of prescription drugs. A jury convicted Kalantari in November 2022 of one count of conspiracy to commit health care fraud, three counts of health care fraud, and one count of conspiracy to engage in the unlicensed wholesale distribution of prescription drugs.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office; and Special Agent in Charge Timothy DeFrancesca of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.
The FBI and HHS-OIG investigated the cases, with valuable assistance from the California Department of Justice.
Counsel Alexis Gregorian and Trial Attorney Matthew Belz of the Criminal Division’s Fraud Section handled the sentencing hearings. Counsel Alexis Gregorian, Assistant U.S. Attorney Alexandra Michael for the Central District of California, formerly of the Criminal Division’s Fraud Section, and Justin Givens, formerly of the Criminal Division’s Fraud Section, tried the cases.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Former Alaska City Treasurer Sentenced for Wire Fraud, Money Laundering and Tax EvasionRead the Press Release
An Alaska man was sentenced yesterday to 30 months in prison for embezzling more than $1 million from the City of Houston, Alaska, and from a Wasilla-based equipment company, and then evading taxes on the embezzled profits.
According to court documents and statements made in court, from 2015 through 2018, Jess Adams was the Treasurer for the City of Houston, where he was entrusted with bookkeeping responsibilities and had administrative access to the city’s accounting records and software. Adams used this access to direct electronic transfers from the city’s bank account to a personal account in his name, which he maintained to hide the embezzled funds. Adams created fictitious entries in the city’s accounting records to disguise these payments as legitimate business expenses.
In October 2018, the City of Houston placed Adams on administrative leave, and he resigned his position in November 2018. A year later, Adams was employed as a bookkeeper by an equipment company, where he exercised control over the company’s accounting records and software. Using this access, Adams directed electronic transfers from the company’s bank account to other personal accounts that Adams opened in his name to hide the embezzled money. To conceal his activity, Adams used fictitious entries in the company’s accounting software to make it appear as though these funds were transferred for the payment of legitimate business expenses.
Adams then laundered the money he embezzled from the equipment company by making several wire transfers from his personal bank account to other accounts, each at a value greater than $10,000.
To further conceal his embezzlement and evade his taxes, Adams – a former seasonal tax return preparer for a national tax advisory company – filed false individual income tax returns for tax years 2016 through 2021. These returns did not disclose the additional income he embezzled.
In addition to his prison sentence, Adams was ordered to serve three years of supervised release and pay over $1.5 million in restitution to the United States, as well as additional restitution to the City of Houston and to the equipment company.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney S. Lane Tucker for the District of Alaska made the announcement.
IRS Criminal Investigation investigated the case, with substantial assistance from the Alaska State Troopers.
Trial Attorney Boris Bourget of the Tax Division and Assistant U.S. Attorney Tom Bradley for the District of Alaska prosecuted the case.
Court Enjoins Louisiana Company and its Owners from Distributing Adulterated FoodRead the Press Release
On July 2, a federal court enjoined a Louisiana company from manufacturing and distributing adulterated food products in violation of the Federal Food, Drug and Cosmetic Act (FDCA).
In a civil complaint filed on June 10, the United States alleged that Freshy Foods, LLC, Team Fresh & Go, LLC and its owners, Floyd D. James and Ida M. James, violated the FDCA at their food processing facility in Elmwood, Louisiana by manufacturing and distributing adulterated food products. The defendants manufactured and distributed ready-to-eat food products, including sandwiches and fruit cups. The complaint alleged that environmental tests in 2023 detected Listeria monocytogenes (L. mono), the pathogen that can cause listeriosis, in the defendants’ facility. The complaint also alleged that a 2023 U.S. Food and Drug Administration (FDA) inspection identified insanitary conditions at the facility. According to the complaint, the defendants voluntarily withdrew their registration to process FDA-regulated food in August 2023.
“Food manufacturers must ensure the safety of their food products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department works closely with the FDA to pursue appropriate legal actions against food manufacturers who fail to adhere to laws designed to protect public health.”
“The FDA will continue to stress that it’s the responsibility of food manufacturers to ensure they are producing food under safe and sanitary conditions,” said Deputy Commissioner Jim Jones for Human Foods at the FDA. “When a company consistently fails to demonstrate that they are capable of upholding their legal responsibilities, the FDA will seek to hold them accountable.”
The defendants filed an answer denying the government’s allegations, but also agreed to settle the suit by entering into a consent decree. The order entered by the court permanently enjoins the defendants from violating the FDCA. The consent decree also requires, subject to limited exceptions, that the defendants notify FDA and comply with specific remedial measures prior to resuming the manufacture of any FDA-regulated food products.
Trial Attorneys Colin W. Trundle and Kathryn A. Schmidt of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Sandra Lee Sears for the Eastern District of Louisiana handled the case, with assistance from Assistant Chief Counsel Sarah Rosenberg of FDA’s Office of the Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
The claims resolved by the consent decree announced today are allegations only, and there has been no determination of liability.
Connecticut Fisherman Pleads Guilty to Tax EvasionRead the Press Release
A Connecticut man pleaded guilty today to evading taxes on income he earned as a commercial fisherman.
According to court documents and statements made in court, Brian Kobus, of Durham, Connecticut, worked as a commercial fisherman and deckhand for fishing companies in Massachusetts. After each fishing trip, the companies paid him by check. Despite receiving over $1.4 million in fishing income between 2011 through 2013, and 2017 through 2021, Kobus did not file federal income tax returns or pay the taxes that he owed. To conceal the source and disposition of his income from the IRS, Kobus regularly cashed his paychecks from the fishing companies and used the cash to fund his lifestyle. In total, he caused a tax loss to the IRS of approximately $377,839.90.
Korbus is scheduled to be sentenced on Oct. 16 and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joshua S. Levy made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Matthew L. Cofer of the Justice Department’s Tax Division and Assistant U.S. Attorney Victor Wild for the District of Massachusetts are prosecuting the case.
Owner and Operator of Colorado Natural Gas Processing Plant Agree to Pay $1M Fine and Improve Leak Detection and Repair Equipment and PracticesRead the Press Release
The Justice Department, Environmental Protection Agency (EPA) and State of Colorado today announced a settlement with Enterprise Gas Processing LLC and Enterprise Products Operating LLC (jointly, “Enterprise”). The agreement, which includes a $1 million civil penalty, will protect community health and the environment by strengthening leak detection and repair practices at the Meeker Gas Plant in Rio Blanco County, Colorado.
A complaint filed concurrently with the settlement alleges that Enterprise violated leak detection and repair requirements in accordance with the Clean Air Act and state clean air laws. The violations resulted in excess emissions of volatile organic compounds (VOCs) and other pollutants to the atmosphere.
“All gas refining and processing facilities must comply with the Clean Air Act,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This settlement includes important provisions to improve leak detection, repair practices and staff training, which applied here will help protect public health in western Colorado.”
“Together, EPA and CDPHE are committed to delivering enforcement, inspections and compliance assistance that provide tangible benefits for Colorado’s communities,” said EPA Regional Administrator KC Becker. “This action will secure facility compliance and reduce emissions of air pollutants in Meeker and the surrounding area.”
“The protection of Colorado’s air quality made possible through this settlement with Enterprise is a testament to the power of collaboration between dedicated state and federal public officials,” said Colorado Attorney General Phil Weiser. “We are proud to support the state’s Air Pollution Control Division as it continues to lead the way to reduce air pollution from oil and gas operations and pursue better air for all Coloradans.”
As part of the settlement, Enterprise will take corrective actions and pay a $1 million civil penalty. Half of the penalty will go to the federal government and half will go to the State of Colorado, where a portion will fund projects to benefit disproportionately impacted communities through the state's environmental justice grant program.
Under the settlement, Enterprise will strengthen its leak detection and repair practices at the Meeker Gas Plant. These commitments include:
- Installing equipment that leaks less pollution to the atmosphere;
- Reviewing compliance with leak detection and repair requirements; and
- Repairing leaking equipment faster.
Enterprise will also improve staff training and use optical gas imaging technology to improve the visual detection of leaks to address them more quickly.
Equipment leaks at the Meeker Gas Plant emit VOCs, which lead to the formation of ground-level ozone. Ozone contributes to serious public health concerns, including respiratory illness, aggravation of existing heart disease and temporary breathing difficulty for people with asthma. Young children and older people are especially sensitive to these impacts. Leaks from equipment at the Meeker Gas Plant also emit methane, a powerful greenhouse gas.
The EPA investigated the case.
Attorneys of the Environment and Natural Resources Division’s Environmental Enforcement Section are handling the case.
The Justice Department filed the consent decree with the U.S. District Court for the District of Colorado. The consent decree is subject to a 30-day public comment period. It is available on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.
New York Man and Canadian National Plead Guilty to Multimillion-Dollar Export Control SchemeRead the Press Release
Nikolay Goltsev, 38, of Montreal, and Salimdzhon Nasriddinov, 53, of Brooklyn, New York, pleaded guilty today to conspiracy to commit export control violations for their roles in a global procurement scheme on behalf of sanctioned Russian companies, including Russian military companies. Some of the electronic components shipped by the defendants were later found in seized Russian weapons platforms and signals intelligence equipment in Ukraine.
“The defendants shipped millions of dollars of U.S. electronics critical to the missiles and drones Russia uses to attack Ukraine, and they now face U.S. prison time for their scheme,” said Deputy Attorney General Lisa Monaco. “As Russia continues to wage its unjust war of aggression against Ukraine, the Department remains committed to holding accountable those who fuel Putin’s war machine.”
“The defendants shipped millions of dollars’ worth of electronic components to Russia, including the exact type of parts found in Russian weapons and drones used to attack Ukraine,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We know the devastation and destruction that these weapons cause and the Justice Department is committed to holding accountable those who violate U.S. laws to supply the Russian war machine.”
“Eliminating illegal global procurement networks that prop up the Russian war machine requires a full-court press,” said Assistant Secretary of Commerce Matthew S. Axelrod for Export Enforcement. “That’s why we and our law enforcement partners are working nonstop to ensure that those operating such networks like Nasriddinov and Goltsev face American justice.”
“The defendants flouted U.S. law to help Russia in its war against Ukraine, but they were stopped in their tracks and swiftly brought to justice,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s guilty pleas reflect that that this Office will take on and successfully neutralize the complicated procurement networks that are making it possible for Russia to continue its unprovoked war against Ukraine.”
“The defendants in this case engaged in an illegal scheme to funnel electronic components to Russia to use in its unjust invasion of Ukraine,” said Executive Assistant Director Robert Wells of the FBI’s National Security Branch. “They tried to disguise their activities using front companies but were ultimately discovered and brought to justice. The FBI will continue working with our partners to investigate and hold accountable those who violate sanctions in support of adversarial nations.”
“With today’s guilty pleas, all three defendants have acknowledged their involvement in their scheme to provide more than $7 million worth of material support to the Kremlin in its inhumane attacks on Ukraine,” said Special Agent in Charge Ivan J. Arvelo of Homeland Security Investigations (HSI) New York. “Nikolay Goltsev, Salimdzhon Nasriddinov, and their co-conspirator coordinated the deployment of over 300 shipments of restricted electronics that were ultimately used on the Russian battlefield. HSI New York remains committed to utilizing its unique authorities to relentlessly pursue individuals who seek to exploit U.S. export control laws for financial gain. I am proud to stand alongside the Justice Department, FBI, and Department of Commerce in confronting these issues directly.”
According to court documents, Goltsev and Nasriddinov used two Brooklyn companies, SH Brothers Inc. and SN Electronics Inc., to unlawfully source, purchase, and ship millions of dollars in dual-use electronics from U.S. manufacturers to sanctioned end users in Russia. Some of the electronic components and integrated circuits shipped by the defendants through SH Brothers have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine, including the Torn-MDM radio reconnaissance complex, the RB-301B “Borisoglebsk-2” electronic warfare complex, the Izdeliye 305E light multi-purpose guided missile, the Vitebsk L370 airborne counter missile system, Ka-52 helicopters, Orlan-10 unmanned aerial vehicles (UAVs) and T-72B3 battle tanks. Some of these components were critical to Russia’s precision-guided weapons systems being used against Ukraine. During the period charged in the indictment, SH Brothers made hundreds of shipments valued at over $7 million to Russia.
To carry out their criminal scheme, Nasriddinov and Goltsev purchased the electronic components from U.S. manufacturers and distributors under the auspices of SH Brothers and SN Electronics and arranged for the items to be shipped from those manufacturers and distributors to various locations in Brooklyn. Nasriddinov and Goltsev then unlawfully shipped the items to a variety of intermediary front companies located in other countries, including Turkey, Hong Kong, India, China, and the United Arab Emirates, where they were rerouted to Russia.
The defendants were aware of the potential military applications of the electronics that they exported to Russia. For example, in a message exchange on or about and between Nov. 8, 2022, and Nov. 15, 2022, Goltsev commented how shipping to Russia had become “dangerous” and discussed a shipment of electronic components that had been detained by U.S. officials at John F. Kennedy International Airport in Queens, New York. Nasriddinov responded that “Ukrainians alleged that they’re being bombed from parts from there [the U.S. manufacturer], maybe that’s why they started investigating everything?” Goltsev responded that “we need to figure out why they keep holding the package . . . I don’t really understand how they figured [it] out.” In a subsequent message, Goltsev commented that, “in the future we will need to load from several companies, not to attract attention . . . for now large packages will be dangerous until we understand what they figured out . . . we will need to think of diversifying the load . . . so that not everything is not moving from the same deck.”
In a Feb. 23, 2023, message, Nasriddinov wrote to Goltsev, “Happy Defender of the Fatherland,” referring the holiday in Russia and parts of the former Soviet Union celebrating those who served in the armed forces. Goltsev responded, “happy holiday to you too my friend, we are defending it in the way that we can [smile emoji].”
The scheme involved millions of dollars and proved to be lucrative for the defendants. For example, in a Sept. 15, 2022, text message from Nasriddinov to Goltsev, Nasriddinov boasted, “SH [Brothers] is one of the best companies in the world, it’s time to move forward onto the stock exchange and stock market, capital should be in the billions, we are working.” Goltsev responded, “pushing components to those who need it I can do, everything else you will have to teach me [three smile emojis].”
The government seized $20,000 in cash from the New York hotel room in which Goltsev was arrested. In total, the government has seized approximately $1.68 million dollars in connection with this export scheme.
Goltsev and Nasriddinov are scheduled to be sentenced on Dec. 10 and Dec. 11, respectively. They each face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Co-defendant Kristina Puzyreva pleaded guilty in February to conspiracy to launder the proceeds of the export scheme. She is awaiting sentencing.
The FBI, HSI and Department of Commerce, Export Enforcement are investigating the case, with assistance from the U.S. Customs and Border Protection and Justice Department’s Office of International Affairs.
Trial Attorney Christopher M. Cook of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorneys Artie McConnell, Ellen H. Sise, and Laura Mantell for the Eastern District of New York are prosecuting the case.
Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine
New York Man Pleads Guilty to Obstructing Investigation into Workplace DeathRead the Press Release
Richard Zagger, of Blue Point, New York, pleaded guilty today to a charge of conspiracy and three charges of obstruction. A sentencing hearing is scheduled for Oct. 16.
The four-count indictment alleges that Zagger was a supervisor for Northridge Construction Corporation, located in East Patchogue, Long Island, New York. On Dec. 8, 2018, Zagger was overseeing employees of Northridge Construction Corporation who were constructing a metal shed on the Northridge property. During the construction, one of the employees fell from the improperly secured shed roof and died.
The Occupational Safety and Health Administration (OSHA) investigated the employee’s death and violations of worker safety standards. Among other worker safety standards, OSHA regulations require maintaining the stability of a metal structure at all times during construction. The indictment charges that during the investigation, Zagger made false statements and conspired with others to make false statements to obstruct the federal agency’s inquiry.
The maximum penalty for the conspiracy count and each obstruction count is five years in prison and a $250,000 fine, or twice the economic gain to the defendant or loss suffered by the victim because of the crime.
Also, in regards to the same fatal incident, Northridge previously pleaded guilty to violating a worker safety standard causing the death of one of its employees and to making two false statements that obstructed OSHA’s investigation. The corporation is scheduled to be sentenced on Aug. 6.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division made the announcement.
The Department of Labor’s Office of the Inspector General investigated the case.
Senior Trial Attorneys Daniel Dooher and Richard J. Powers and Trial Attorney Rachel Roberts of the Environment and Natural Resources Division’s Environmental Crimes Section are prosecuting the case.
Man Sentenced for Sending Death Threat to Michigan Election WorkerRead the Press Release
An Indiana man was sentenced today to 14 months in prison for sending a communication that included death threats to an election worker in Michigan shortly after the November 2020 election.
“The Justice Department has no tolerance for violent threats against election workers, officials, and volunteers, and as this case demonstrates, we will aggressively investigate and prosecute such threats to the fullest extent of the law,” said Attorney General Merrick B. Garland. “We will continue to defend the right to vote and to defend the safety of the public servants who make voting possible.”
“The defendant repeatedly threatened the life of a Michigan election worker because she publicly defended the integrity of the 2020 election that she helped administer,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Our democracy depends on the willingness of election workers to do their jobs without having to live in fear. Today’s sentence should serve as yet another reminder that the Justice Department will not hesitate to prosecute those who threaten violence to influence how our public servants administer elections.”
According to court documents, on or about Nov. 10, 2020, Andrew Nickels, 38, of Carmel, called the clerk of a local municipality and left a voicemail threatening to kill the local official. As part of the message, Nickels said, in part, “We’re watching your…mouth talk about how you think that there’s no irregularities … [Y]ou frauded out America of a real election.” Nickels then told the clerk that “you’re gonna pay for it,” and described how “ten million plus patriots will surround you when you least expect it.” He continued, in relevant part: “[W]e’ll [expletive] kill you…[Y]ou will [expletive] pay for your [expletive] lying ass remarks … We will [expletive] take you out. [Expletive] your family, [expletive] your life, and you deserve a [expletive] throat to the knife … Watch your [expletive] back … watch your [expletive] back.”
“Threats such as the ones that Nickels made undermine our democracy by making elections workers fearful for their lives and for the safety of their families—just for doing their jobs,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “This sentence should send a clear message that those who seeks to jeopardize the fair and free administration of our elections with threats of violence will be vigorously prosecuted and held accountable.”
“The FBI and its partners will not tolerate threats against our election workers,” said Executive Assistant Director Michael Nordwall of the FBI’s Criminal, Cyber, Response, and Services Branch. “Today’s sentencing shows our commitment to ensuring that public servants can do their jobs without fear of retribution.”
Nickels pleaded guilty on Feb. 27 to one count of making a threatening interstate communication.
The FBI Detroit Field Office investigated the case.
Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Frances Lee Carlson for the Eastern District of Michigan prosecuted the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers—whether elected, appointed, or volunteer—are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. The task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
The task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
Georgia Precious Metals Dealer Sentenced for Tax FraudRead the Press Release
Saleem Hakim was sentenced today to four years in prison following his conviction in January on charges of tax evasion and failing to file tax returns.
According to court documents and evidence introduced at trial, during at least the years 2009 through 2013, Hakim was in the business of brokering the sale of precious metals to clients. Hakim earned more than $2.8 million in commissions for converting cash to precious metals for his clients during those years which enabled him to fund a lavish lifestyle that included purchases of high-end watches, jewelry, designer accessories and furs. Despite earning substantial income during 2009 through 2013, he did not file income tax returns for those years. Hakim last filed an income tax return for tax year 1999.
The evidence introduced at trial additionally showed that, from 2020 through 2022, Hakim and his wife worked for businesses in Atlanta that were engaged in the purchase and sale of jewelry and luxury handbags. The Hakims earned a combined income of more than $260,000 for those years but did not file returns. The evidence also established that Hakim attempted to conceal his and his wife’s income from the IRS by diverting their income into a trust that he established after being initially charged with tax crimes for the years 2011 through 2013.
Hakim attempted to obstruct the investigation into his tax misconduct for 2020 through 2022. After a witness received a grand jury subpoena for records relating to income that the witness paid to Hakim and his wife, Hakim drafted a letter for the witness falsely stating that the witness did not have any business records in his possession relating to the Hakims and asked the witness to send the letter. The witness sent the letter to federal prosecutors and IRS agents.
In addition to his prison sentence, U.S. District Judge Michael L. Brown for the Northern District of Georgia ordered Hakim to serve three years of supervised release and pay $1,219,225.73 in restitution to the IRS, and $4,490.52 in prosecution costs.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Melissa S. Siskind and Colleen McCarthy of the Justice Department’s Tax Division prosecuted the case.
Acting Deputy Assistant Attorney General Goldberg thanked the U.S. Attorney’s Office for the Northern District of Georgia for the substantial assistance they provided in the investigation and prosecution of this matter. Acting Deputy Assistant Attorney General Goldberg also thanked Trial Attorney Christina Grimes and former Trial Attorneys Jeffrey Bender and Kathryn Carpenter of the Tax Division who previously worked on this matter.
PRC Citizens Sentenced for Conspiring to Transport Illegal Aliens to GuamRead the Press Release
Saipan, MP – Shawn N. Anderson, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announces that on July 2, 2024, ChangCai Dong, age 61, and YongBing Tang, age 54, both citizens of the People’s Republic of China (PRC) were sentenced in the District of the Northern Mariana Islands for Conspiring to Transport Illegal Aliens, in violation of 8 U.S.C. § 1324 (a)(1)(A). The Court ordered each defendant to serve 30 days in prison, one year of supervised release, 50 hours community service, and pay a $100 mandatory assessment fee. Both defendants were also ordered to promptly return to the PRC after serving their sentence.
The defendants were among 12 PRC nationals and two U.S. citizen crew members rescued by U.S. Navy helicopters during an attempted illegal transit from Saipan to Guam in July of 2023. Their boat, overloaded and poorly equipped for rough seas, ran out of fuel near the island of Rota and drifted for more than 14 hours before the crew radioed a distress call. During the sentencing hearing, both defendants expressed deep regret for getting on the boat, and one recalled fearing that the boat would capsize “under dark skies and big waves.” He thought they would all die and thanked the U.S. government for rescuing them even though they broke the law.
“Our federal and local partners will continue to target unlawful travel between the CNMI and Guam,” stated United States Attorney Anderson. “This activity is an abuse of the CNMI parole program. It also creates substantial risk to those involved in these voyages, in addition to the rescuers.”
“Those who seek to undermine the rule of law, and in the process endanger the lives of their victims for the sake of profit, will be held accountable,” said Lucia Cabral-DeArmas, Acting Special Agent in Charge for HSI Honolulu. “It’s fortunate no lives were lost, and HSI will continue to exercise our investigative expertise to protect human rights.”
The rescue was a coordinated effort by the U.S. Coast Guard and U.S. Navy, with assistance from allied military personnel and resources.
This case was investigated by Homeland Security Investigations, with assistance from the Commonwealth of the Northern Mariana Islands, Department of Public Safety-Rota.
Assistant United States Attorney Eric S. O’Malley from the District of the Northern Mariana Islands prosecuted the case.
Alaska Businesswoman Pleads Guilty to Tax Evasion SchemeRead the Press Release
An Alaska woman pleaded guilty on Wednesday to evading taxes on income she earned from the business she operated.
According to court documents and statements made in court, Tina H. Yi, of Anchorage, was the sole owner and operator of SJ Investment LLC, a hotel, bar and liquor store in Nome, Alaska, that did business as Polaris HBL. Yi created the business in approximately April 2007 and operated it until approximately October 2017, when the physical property was destroyed in a fire.
From approximately 2014 to 2018, Yi maintained two sets of financial records relating to the business’ income and expenses, one of which accurately captured SJ Investment’s income and expenses, and one that understated the business’s income. Yi provided the false records to her accountant to prepare her tax returns. As a result, her 2014 through 2018 tax returns were all false.
Yi caused a total tax loss to the IRS of over $550,000.
Yi is scheduled to be sentenced on Oct. 11, and faces a maximum penalty of five years in prison. She also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney S. Lane Tucker for the District of Alaska made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney John C. Gerardi of the Tax Division and Assistant U.S. Attorney Tom Bradley for the District of Alaska are prosecuting the case.
Former Defense Contractor and His Wife Indicted for Evading U.S. Taxes on Profits from Selling Jet Fuel to U.S. MilitaryRead the Press Release
An indictment was unsealed today charging Douglas Edelman, a former defense contractor, and Delphine Le Dain, his wife, with a decades-long scheme to defraud the United States and evade taxes on more than $350 million in income Edelman made as a defense contractor during the United States’ post-9/11 military efforts in Afghanistan and the Middle East. Edelman was arrested on July 3 in Spain based on the U.S. criminal charges. The United States will seek Edelman’s extradition to stand trial in the United States.
According to the indictment, between 2003 and 2020, Edelman allegedly was the 50% owner of Mina Corp. and Red Star Enterprises (Mina/Red Star), a defense contracting business that received more than $7 billion from contracts with the Department of Defense to provide jet fuel to U.S. troops in Afghanistan and the Middle East. Working with Le Dain and several other co-conspirators, Edelman allegedly engaged in a lengthy scheme to hide his profits from Mina/Red Star, including by concealing his income in undisclosed foreign bank accounts, creating false documents and making false statements that Le Dain — who, as a French citizen residing abroad, did not have U.S. tax obligations — founded and owned Mina/Red Star. Le Dain allegedly signed some of the false documents, including those that purported to “gift” Edelman money for certain personal expenses.
The indictment further alleges that to carry out his scheme, Edelman conveyed this false story of Le Dain’s ownership to arms of the U.S. government, including to a Subcommittee of the House of Representatives during a 2010 Congressional investigation, to the Department of Defense during contract negotiations, to the Internal Revenue Service in a 2015 application to the Offshore Voluntary Disclosure Program, and to the Justice Department in a 2018 presentation.
Until approximately 2015, Edelman allegedly did not file any U.S. individual tax returns and did not pay any tax on the tens of millions of dollars he was allegedly making each year from Mina/Red Star. In 2015, Edelman allegedly filed false returns for tax years 2007 to 2014, claiming that his business interests, income, and assets belonged to Le Dain. From 2015 to 2020, Edelman allegedly filed false tax returns reporting that his only income was as a consultant, and that he had no interests in any foreign businesses.
The indictment further alleges that Edelman directed his profits from Mina/Red Star into banks known at the time to shield account holder identities from U.S. authorities, in countries such as Switzerland, the Bahamas, Singapore and United Arab Emirates. He allegedly held the accounts in the name of non-U.S. entities created in countries such as Panama, Belize and the British Virgin Islands. Edelman allegedly always controlled the money in these accounts and used it to fund his other business ventures around the world, including a business selling internet services to U.S. troops and contractors at Kandahar Air Base in Afghanistan, a Mexican fuel infrastructure project and a music television franchise in Eastern Europe. Edelman allegedly also used the money to buy a ski chalet in Austria, a house in Spain, a townhouse in London and multiple yachts — all of which were purchased in the name of nominees.
Edelman and Le Dain are charged with conspiring to defraud the United States and 15 counts of tax evasion. Edelman is also charged with two counts of making false statements to the United States, and 12 counts of willfully violating his foreign bank account reporting obligations, as part of a pattern of unlawful activity.
If convicted, Edelman and Le Dain face up to five years in prison for the conspiracy count, as well as up to five years in prison for each tax evasion count. Edelman also faces up to five years in prison for each false statement count and ten years in prison for each count of willfully violating foreign bank account reporting while engaged in a pattern of unlawful activity involving more than $100,000 per year. They each face a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Matthew M. Graves for the District of Columbia made the announcement.
IRS Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction are investigating the case, with assistance from His Majesty’s Revenue & Customs of the United Kingdom. Assistance was also provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, the Netherlands, United Kingdom and United States. Assistance with the arrest was provided by the U.S. Drug Enforcement Administration and Guardia Civil of Spain.
Senior Litigation Counsel Nanette Davis, Assistant Chief Sarah Ranney and Trial Attorney Ezra Spiro of the Tax Division and Assistant U.S. Attorney Joshua Gold for the District of Columbia are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Providence Businesswoman Arraigned in Federal Court in Alleged Multi-Million Dollar Fraud Scheme Targeting Seniors and Other Vulnerable VictimsRead the Press Release
A Rhode Island woman was arraigned today following indictment on June 17, by a federal grand jury on charges of mail fraud and conspiracy for operating a direct-mail sweepstakes scheme that defrauded seniors and other vulnerable individuals across the country out of more than $10 million dollars.
According to court documents, Megan E. Shine, 47, of Warwick, utilized the U.S. Mail to engage in a predatory mail fraud scheme that duped the elderly and other vulnerable individuals into sending payments, usually between $20 and $30 dollars, using mailings that falsely led recipients to believe they were entitled to cash prizes or other valuable items or benefits. Many victims reported being contacted multiple times and sending multiple payments. The scheme was allegedly perpetrated through businesses Shine created and operated in Rhode Island, including Lucky Dog LLC, doing business as Premium Ops & Incentives, and Destiny Merchandise LLC, doing business as Independent Catalog Services.
“Mass mail fraud schemes defraud elderly and vulnerable consumers out of millions of dollars every year,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department’s Consumer Protection Branch and its law enforcement partners are committed to vigorously pursuing all individuals who prey on vulnerable and elderly victims through these types of fraudulent schemes.”
“Preying on the hopes of elderly and vulnerable victims for profit, and using fraudulent mailings to persuade them to part with their hard-earned money takes a terrible toll- financially and mentally,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “Working with our partners at the Department’s Consumer Protection Branch, the Postal Inspection Service and federal, state and local law enforcement, we are determined to ensure that those who seek to profit from fraud are held accountable.”
According to the indictment, Shine mailed deceptive solicitations that led recipients to believe they had been individually pre-selected or verified and entitled to claim a large amount of money in a lottery or entitled to receive a valuable item. In the mailings (often personalized with the name of the recipient to bolster their apparent authenticity), recipients were instructed to send money, frequently by a deadline, to a post office box in Providence for the “processing” or “handling” of their purported winnings. The mailings were printed on official-looking or certificate paper, frequently carried what appeared to be the seals of governments or government agencies, and frequently contained other language and details designed to make them appear official or legitimate, including bar codes, document control numbers, printing that appears to be rubber stamped, such as the phrase “authorized document,” highlighted text, bank-check style typeface and formatting, as well as identification and other codes. In reality, all of the mailings were identical (apart from the name and address of the recipient).
The solicitations contained text and graphics that created a false overall impression that the recipients were already winners of substantial awards, often totaling millions of dollars. In reality, recipients had not won a prize. Instead, according to the indictment, Shine sent victims a booklet containing publicly available sweepstakes rules or a small and inexpensive piece of jewelry.
Shine is charged with four counts of mail fraud and one count of conspiracy. If convicted, Shine faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The United States Postal Inspection Service is investigating the case.
Trial Attorneys Charles Dunn, Ann Entwistle and Colin Trundle of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Denise M. Barton and Peter I. Roklan for the District of Rhode Island are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Secures Agreement with Kansas School District Regarding School Discipline, Law Enforcement and Seclusion and RestraintRead the Press Release
The Justice Department announced today a settlement agreement to resolve the department’s investigation into race and disability discrimination in Wichita Public Schools, Kansas’ largest school district. Under the settlement, the district will revise practices to prevent discrimination in discipline and referrals of students to law enforcement, end the use of seclusion, reform its restraint practices and improve services to students with disabilities in certain schools and classrooms.
The department’s investigation revealed, among other things, that the district’s Black students were disciplined more frequently and more severely than white students who engaged in similar conduct and had similar backgrounds and disciplinary histories. This pattern was most evident when it came to subjective offenses such as insubordination, and was especially stark when it came to discipline of Black girls, whose behavior was repeatedly characterized using stereotypical terms like “attitude” or “drama.” In addition, the investigation concluded that the district inappropriately and repeatedly secluded and restrained students with disabilities and relegated those with the greatest behavioral needs to inferior facilities with inadequate services and support.
“Black students inside our nation’s public schools should not have to face discipline or a referral to law enforcement because of their race. And students with disabilities should not have to experience the trauma of seclusion or improper restraint,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Schools in our communities should not be a place of fear or mistrust. This agreement upholds our core principles of ending the school to prison pipeline and protecting our most vulnerable students against all forms of discrimination and segregation.”
The school district fully cooperated with the investigation, which was conducted under Titles IV and VI of the Civil Rights Act of 1964, Title II of the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act. The department’s review uncovered discriminatory treatment of Black students in the administration of discipline at multiple schools, with Black girls facing especially high levels of exclusion for perceived insubordination and for dress code violations at certain middle schools. The department’s investigation also found evidence of racial discrimination in referrals to law enforcement and a pattern of security officers responding to routine discipline matters and escalating those incidents, resulting in the unnecessary referral of Black students to law enforcement for routine or minor misbehavior.
In addition, the department’s investigation concluded that the district inappropriately and repeatedly secluded and restrained students with disabilities, including for punitive reasons or in response to noncompliance with school rules and staff directives. During the period covered by the investigation, students with disabilities received more than 98% of the district’s roughly 3,000 restraints and seclusions. At least 44 students experienced 20 or more restraints and seclusions during the period covered by the investigation and one student was restrained or secluded at least 144 times, including 99 seclusions lasting over 15 hours in total. In the district’s schools and classrooms for students with disabilities — where the vast majority of seclusions and restraints occurred — the district either lacked student behavior interventions or failed to implement them and ensure their effectiveness. When the department visited the district’s special schools for students with behavioral disabilities, it found inferior facilities devoid of furniture, educational equipment and the kinds of decor commonly found in schools, and staff who could not meet the needs of students.
Under the agreement, the district will, among other steps:
- Develop a district-wide code of conduct, standardize dress code policies and create a behavior intervention protocol to ensure the nondiscriminatory administration of discipline and prohibit unnecessary exclusion of students from the school environment;
- Create a system of district-level monitoring of schools’ administration of discipline to ensure nondiscrimination;
- Ensure that school security and law enforcement only become involved in student misbehavior in appropriate circumstances and thereby avoid criminalizing routine school discipline matters;
- Eliminate the use of seclusion;
- Restrain students only when their behavior poses an imminent danger of serious physical harm to the student or another person, properly document all restraints and provide students who are restrained or secluded with required interventions;
- Ensure that only professionals with the requisite expertise and training run and staff specialized schools for students with disabilities;
- Provide counseling and compensatory education to students who have been repeatedly secluded; and
- Create an office to monitor the district’s restraint practices (and seclusion until it is eliminated) to ensure compliance with the agreement and assist district staff in providing required interventions and supports.
Today is the 60th anniversary of the Civil Rights Act of 1964. Enforcement of Titles IV and VI of the Civil Rights Act to protect students from race discrimination in school is a priority of the Civil Rights Division. In addition, this agreement is the most recent in a series of settlements under Title II of the ADA to address and prevent unlawful seclusion and restraint of students with disabilities in public schools. To learn more about the section’s work under the ADA to combat improper seclusion in schools, visit www.justice.gov/schoolseclusion.
Additional information about the Civil Rights Division is available at www.justice.gov/crt, and additional information about the Civil Rights Division’s Educational Opportunities Section’s work is available at www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.
View the cover letter sent to Wichita Public Schools in English here.
View the cover letter sent to Wichita Public Schools in Spanish here.
View the summary of the settlement agreement in English here.
View the summary of the settlement agreement in Spanish here.
Human Smuggling Guide Sentenced to 120 Months in PrisonRead the Press Release
A Mexican citizen was sentenced today to 120 months in prison for his role in a dangerous human smuggling conspiracy.
Jesus Ernesto Dessens-Romero, 28, of Agua Prieta, Sonora, Mexico, was sentenced by U.S. District Judge John Hinderaker for the District of Arizona. In November 2023, Dessens-Romero was found guilty of multiple alien smuggling offenses by a jury, including conspiracy to transport and transportation of illegal aliens for profit and bringing in illegal aliens to the United States for profit. The jury also found that Dessens-Romero placed human life in jeopardy during and in relation to these offenses.
“Human smugglers profit from the exploitation of migrants and routinely expose them to violence, injury, and death,” said Attorney General Merrick B. Garland. “Today’s sentence shows the Justice Department will continue to hold accountable these smugglers and the criminal networks that abuse, exploit, or endanger migrants.”
Evidence presented at trial established that Dessens-Romero was the human smuggling foot guide for five Mexican nationals who illegally crossed into the United States on or about Feb. 13, 2021. The group included three sisters – ages 23, 20, and 17 – and their family friend, age 16. Dessens-Romero led the individuals under his care into the rugged and remote Huachuca Mountains near Fort Huachuca in southern Arizona. He led the group on this perilous route due to less law enforcement presence. The group had limited food and water, and at night, suffered through serious weather conditions including freezing temperatures and snow.
By Feb. 15, 2021, the 23-year-old sister was in significant physical distress. She was unable to eat, walk, or follow simple commands. Dessens-Romero told the group that they were close enough to a traveled roadway where the sick woman could be found if the group left her behind. Dessens-Romero did not call emergency services. Instead, he located cell phone reception at higher ground to call a transnational criminal smuggling organization. Dessens-Romero then led the rest of the group to Sierra Vista where they were picked up by unidentified co-conspirators and transported further into the United States.
The family of the woman left behind contacted authorities on Feb. 16, 2021, to report a missing person. Despite extensive search efforts by U.S. Border Patrol, military officials from Fort Huachuca, Cochise County Sheriff’s Department, and Homeland Security Investigations (HSI), she was not located. During this time, Dessens-Romero contacted the surviving sisters on behalf of the smuggling organization to try to convince them to remove a “missing person” social media post. In the months following, HSI worked collaboratively with SOS Búsqueda y Rescate, a nonprofit organization dedicated to finding missing migrants, to continue searching for the missing woman. On Nov. 20, 2021, members of SOS Búsqueda y Rescate located skeletal remains in an isolated area of the Huachuca Mountains, on Fort Huachuca property. Dental records confirmed that the remains belonged to the missing 23-year-old sister. The deceased is survived by her husband and daughter.
At trial, additional evidence confirmed that Dessens-Romero continued to smuggle undocumented non-citizens within the United States until June 2021. Dessens-Romero was arrested on June 30, 2021, by Tennessee Highway Patrol while transporting two migrants.
This case was a result of the coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Justice Department, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The initiative was expanded to Colombia and Panama to combat human smuggling in the Darién in June 2024. JTFA comprises detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of California, District of Arizona, District of New Mexico, and Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section, and supported by the Office of Prosecutorial Development, Assistance, and Training; the Narcotic and Dangerous Drug Section; the Money Laundering and Asset Recovery Section; the Office of Enforcement Operations; the Office of International Affairs; and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, DEA, and other partners. To date, JTFA’s work has resulted in 313 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; more than 251 U.S. convictions; more than 186 significant jail sentences imposed; and forfeitures of substantial assets.
The HSI Douglas Field Office investigated the case, in coordination with the Fort Huachuca Army Criminal Investigation Division, Armed Forces Medical Examiner System, HSI-Nashville Field Office, and Tennessee Highway Patrol.
The U.S. Attorney’s Office for the District of Arizona prosecuted the case.
El Departamento de Justicia llega a un acuerdo con un Distrito Escolar de Kansas con respecto a la disciplina escolar, la aplicación de la ley y el aislamiento y la restricciónRead the Press Release
El Departamento de Justicia anunció hoy un acuerdo de conciliación para resolver la investigación del Departamento de la discriminación por motivos de raza y discapacidad en las escuelas públicas de Wichita, el distrito escolar más grande de Kansas. En virtud del acuerdo, el distrito revisará las prácticas para evitar la discriminación en la disciplina y las derivaciones de estudiantes a las fuerzas del orden público, finalizará el uso del aislamiento, reformará sus prácticas de restricción y mejorará los servicios a los estudiantes con discapacidades en ciertas escuelas y aulas.
La investigación del Departamento reveló, entre otras cosas, que los estudiantes negros del distrito fueron sancionados con más frecuencia y más severidad que los estudiantes blancos que incurrieron en conductas similares y tenían antecedentes e historiales disciplinarios similares. Este patrón fue más evidente cuando se trataba de infracciones subjetivas como la insubordinación, y fue especialmente marcado cuando se trataba de disciplina de niñas negras, cuyo comportamiento se caracterizó repetidamente utilizando términos estereotípicos como «mala actitud» o «drama». Además, la investigación concluyó que el distrito aislaba y restringía de forma inapropiada y repetida a estudiantes con discapacidades y relegaba a aquellos con las mayores necesidades conductuales a instalaciones inferiores con servicios y apoyo inadecuados.
«Los estudiantes negros dentro de las escuelas públicas de nuestra nación no deberían tener que enfrentarse a medidas disciplinarias o una derivación a las fuerzas del orden público debido a su raza. Y los estudiantes con discapacidades no deberían experimentar el trauma del aislamiento o la restricción indebida», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Las escuelas en nuestras comunidades no deben ser un lugar de miedo o desconfianza. Este acuerdo mantiene nuestros principios fundamentales de poner fin al flujo de la escuela a la prisión y proteger a nuestros estudiantes más vulnerables de todas las formas de discriminación y segregación».
El distrito escolar cooperó plenamente con la investigación, que se llevó a cabo en virtud de los Títulos IV y VI de la ley de Derechos Civiles de 1964, el Título II de la ley de Estadounidenses con Discapacidades (ADA, por sus siglas en inglés) y la Sección 504 de la ley de Rehabilitación. La revisión del Departamento reveló un trato discriminatorio de los estudiantes negros en la administración de la disciplina en múltiples escuelas, y que las niñas negras se enfrentan a niveles especialmente altos de aislamiento por insubordinación percibida y por infracciones del código de vestimenta en ciertas escuelas secundarias. Por otra parte, la investigación del Departamento también halló pruebas de discriminación racial en las derivaciones a las fuerzas del orden público y un patrón de agentes de seguridad que respondían a asuntos disciplinarios rutinarios y aumentaban las hostilidades en esos incidentes, lo que resultó en la derivación innecesaria de estudiantes negros a las fuerzas del orden público por mala conducta rutinaria o menor.
Además, la investigación del Departamento concluyó que el distrito aislaba y restringía, de forma inapropiada y repetida, a estudiantes con discapacidades, incluso por motivos punitivos o en respuesta al incumplimiento de las normas escolares y las directivas del personal. Durante el período cubierto por la investigación, los estudiantes con discapacidades recibieron más del 98 % de las aproximadamente 3,000 restricciones y aislamientos del distrito. Al menos 44 estudiantes fueron aislados o restringidos 20 veces o más durante el período cubierto por la investigación y un estudiante fue restringido o aislado al menos 144 veces, incluidas 99 incidentes de aislamiento que duraron más de 15 horas en total. En las escuelas y aulas del distrito para estudiantes con discapacidades, donde se produjo la gran mayoría de los incidentes de aislamiento y restricción, el distrito carecía de intervenciones conductuales para los estudiantes o no las implementó y no aseguró su eficacia. Cuando el Departamento visitó las escuelas especiales del distrito para estudiantes con discapacidades conductuales, encontró instalaciones inferiores sin muebles, equipos educativos y los tipos de decoración que típicamente se encuentran en las escuelas, y personal que no podía satisfacer las necesidades de los estudiantes.
En virtud del acuerdo, el distrito, entre otras medidas:
- Desarrollará un código de conducta en todo el distrito, estandarizará las políticas del código de vestimenta y creará un protocolo de intervención conductual para garantizar la administración antidiscriminatoria de medidas disciplinarias y prohibir la exclusión innecesaria de estudiantes del entorno escolar;
- Creará un sistema de supervisión a nivel de distrito de la administración disciplinaria de las escuelas para garantizar que no haya discriminación;
- Garantizará que la seguridad escolar y las fuerzas del orden público solo se vean involucradas en la mala conducta estudiantil en las circunstancias apropiadas, así evitando la penalización de asuntos de disciplina escolar rutinaria;
- Eliminará el uso del aislamiento;
- Restringirá a los estudiantes solo cuando su comportamiento represente un peligro inminente de daño físico grave para el estudiante u otra persona, documentará adecuadamente todos los incidentes de restricción y proporcionará las intervenciones requeridas a los estudiantes que estén restringidos o aislados;
- Garantizará que solo los profesionales con la experiencia y la formación necesarias dirijan y doten de personal a escuelas especializadas para estudiantes con discapacidades;
- Proporcionará asesoramiento y educación compensatoria a los estudiantes que han sido aislados repetidamente; y
- Creará una oficina para supervisar las prácticas de restricción del distrito (y el aislamiento hasta su eliminación) para garantizar el cumplimiento con el acuerdo y ayudar al personal del distrito a proporcionar las intervenciones y apoyos necesarios.
Hoy es el 60º aniversario de la ley de Derechos Civiles de 1964. La aplicación de los Títulos IV y VI de la ley de Derechos Civiles con el fin de proteger a los estudiantes de la discriminación racial en la escuela es una prioridad de la División de Derechos Civiles. Además, este acuerdo es el más reciente de una serie de acuerdos en virtud del Título II de la ADA para abordar y prevenir el aislamiento y la restricción ilegales de estudiantes con discapacidades en escuelas públicas. Para obtener más información sobre el trabajo de la Sección en virtud de la ADA para combatir el aislamiento indebido en las escuelas, visite www.justice.gov/schoolseclusion.
Puede encontrar información adicional sobre la División de Derechos Civiles en su sitio web en www.justice.gov/crt, e información adicional sobre el trabajo de la Sección de Oportunidades Educativas está disponible en www.justice.gov/crt/educational-opportunities-section.
Los miembros del público pueden informarnos de posibles infracciones de los derechos civiles en civilrights.justice.gov/report/.
U.S. Marshals Find 200 Missing Children Across the Nation During Operation We Will Find You 2Read the Press Release
The U.S. Marshals Service (USMS), along with federal, state, and local agencies in seven federal judicial districts and geographical locations across the United States, led a six-week national operation that resulted in finding 200 critically missing children, which includes endangered runaways and those abducted by noncustodial persons.
Operation We Will Find You 2 (OWWFY2), the second-of-its-kind nationwide missing child operation, was conducted from May 20 to June 24 and focused on geographical areas with high clusters of critically missing children. Children who go missing may be in serious danger and can be vulnerable to child sex trafficking, abuse, exploitation, and other crimes against children.
With technical assistance from the National Center for Missing and Exploited Children (NCMEC), OWWFY2 resulted in the recovery and removal of 123 children from dangerous situations. An additional 77 missing children were located and found to be in safe locations, according to law enforcement or child welfare agencies. Of the 200 children found, 173 were endangered runaways, 25 were considered otherwise missing, one was a family abduction, and one was a non-family abduction. The youngest child recovered was five months old. 14 of the children were found outside the city where they went missing. Additionally, of the missing children recovered, 57% were recovered within seven days of the USMS assisting with the case.
“There are no words to describe the terror felt by missing children, their families, and their communities,” said Attorney General Merrick B. Garland. “I am grateful to the dedicated professionals of the U.S. Marshals Service and the National Center for Missing and Exploited Children who worked to find 200 critically missing children during this six-week operation, and who work every day to keep children safe.”
“One of the most sacred missions of U.S. Marshals Service is locating and recovering our nation’s critically missing children,” said USMS Director Ronald L. Davis. “This is one of our top priorities as there remain thousands of children still missing and at risk.”
“Operation We Will Find You is a shining example of the results we can achieve when we unite in our mission to find missing children,” said President and CEO Michelle DeLaune of NCMEC. “We are grateful that vulnerable children have been recovered as part of this operation, and we commend the U.S. Marshals Service and all the agencies involved for their commitment to protect youth and ensure these children are not forgotten. Behind every statistic, there is a child who deserves to grow up safe from harm.”
The operation was conducted from the following locations: District of Arizona (Phoenix, Glendale, Goodyear, Tucson, South Tucson, and Pima counties); Eastern District of California (San Joaquin County, Stockton, and Sacramento County); Southern District of Florida (Broward, St. Lucie, Martin, Palm Beach and Miami-Dade counties); Western District of Michigan (Kent, Lake, Ingham, and Ottawa counties); Eastern District of North Carolina (New Hanover, Brunswick, Harnett, Onslow, Pitt, Wake, Johnston, Robeson, Cumberland, Sampson, Nash, and Pender counties); Southern and Eastern Districts of New York (New York City); and District of Oregon (Multnomah, Washington, and Deschutes counties, as well as Portland and Eugene, and the Warm Springs Reservation).
The goal of OWWFY2 was to highlight partnerships amongst government and non-government agencies to develop a multi-disciplinary team whose focus was to pull together resources to find critically missing children and to bring more attention to the epidemic of missing children in America. During the operation, the USMS worked with their respective federal, state, and local law enforcement partners, NCMEC, the Department of Children and Family Services, and other agencies to safely find missing children at risk of endangerment. These missing children were considered some of the most challenging recovery cases in the area, based on indications of high-risk factors such as victimization of child sex trafficking, child exploitation, sexual abuse, physical abuse, and medical or mental health conditions. In addition, other children who had been reported missing were located at the request of law enforcement to ensure they were safe and to confirm the child’s location.
The Justice for Victims of Trafficking Act of 2015 enhanced the USMS’ authority to assist law enforcement with recovering endangered missing children, regardless of whether a fugitive or sex offender was involved. The USMS established a Missing Child Unit to oversee and manage the implementation of its enhanced authority under the Act. Members of the USMS Sex Offender Investigations Branch, Behavioral Analysis Unit, and Missing Child Unit began training personnel in the participating locations months before the operation to ensure that case selection, vetting, and all pre-operational requirements were met.
Operation We Will Find You Links:
- B-roll links:
- Miami B-roll: https://vimeo.com/964878547?share=copy
- North Carolina B-roll: https://vimeo.com/958138308?share=copy
- Photos and posters: https://www.flickr.com/gp/usmarshals/d44Ch0J1q3
Significant Recoveries:
Western District of Michigan:
On Jan. 11, a 16-year-old female child was reported missing from her home in Edwardsburg, Michigan, by her legal guardian. Information obtained through interviews showed the child was likely with a 30-year-old adult male somewhere in the state of Indiana. The investigation showed the child was likely being controlled and abused by the adult male. During the investigation, operation personnel learned information that the child had either attempted to get away from the adult male multiple times or the child wanted to do so. The child was in a difficult and dangerous situation, especially since she had traveled across state lines and was now in a new state, a long distance from where she was first reported missing. The adult male had recent photos of cash and firearms on his social media profile, including one photo where the adult male is apparently pointing a handgun with an extended magazine at the missing child. USMS identified multiple warrants for the adult male from multiple states, including Michigan. The USMS determined a likely location for the adult male and the child in Indiana. A collateral lead request was sent by the Western District of Michigan to the Northern District of Indiana and the Great Lakes Regional Fugitive Task Force. On June 13, USMS personnel attempted to arrest the adult male and recover the child at an apartment in Hammond, Indiana. The adult male jumped out of a window and attempted to flee the area—but was apprehended by a Police K-9 before his eventual arrest. USMS personnel located the child safely inside the apartment and released her to child protective services.
Southern District of Florida:
On May 13, a 15-year-old female was reported missing by her legal guardian. Information indicated that she might be staying at other people's houses or sleeping in parks in Miami-Dade, Florida. During the investigation, it was discovered the child had become a victim of human trafficking in the Miami-Dade area. On June 7, personnel from the U.S. Marshals Service, in collaboration with detectives from the Miami Police Department, located the child in an apartment complex in Miami-Dade after an extensive investigative search throughout the city. Upon being recovered, she was debriefed by Florida State Attorney’s Office Human Trafficking personnel and subsequently returned to the Florida Department of Child and Family Services custody.
District of Arizona:
On April 16, a 16-year-old was reported missing after she ran away from her group home in Phoenix. The female has a history of being sex trafficked. The investigation revealed the child was in Los Angeles, possibly being sex trafficked. The suspected trafficker was murdered in Los Angeles on May 25. The child told a family member she was going on vacation to Miami but when she got there her new “trafficker” dropped her off at the beach and told her to make money. On June 11, the child was located by USMS in Flint, Michigan, in a hotel, and was taken into custody on an outstanding arrest warrant for a probation violation. Her male associate was arrested on local charges for driving without a license and insurance. An additional 20-year-old female was identified in the hotel. The suspected trafficking case was referred to Homeland Security Investigations and they will continue to investigate the case.
New York/New Jersey Regional Task Force:
On Nov. 3, 2023, a 16-year-old female was reported in the National Crime Information Center as missing from New York City, New York Administration for Children’s Services (ACS), and was a prior victim of human trafficking. On May 1, 2024, the New York City Police Department Missing Persons Unit (NYPD MPU) requested USMS assistance in recovering the missing child. On June 3, New York USMS Regional Fugitive Task Force Members executed two arrest warrants for a 27-year-old male who was the primary subject of an ongoing investigation into the whereabouts of the missing minor who was being sexually exploited by the adult male. Upon execution of the warrant, the child was found in the male’s bedroom, and evidence of sexual exploitation was found at the premise. The child was placed in the care of ACS and transported to the hospital for medical treatment.
Eastern District of North Carolina:
On April 29, a one-year-old was reported missing to the Raleigh, North Carolina, Police Department (RPD), after her mother neglected to surrender her to the Department of Social Services (DSS). The RPD requested assistance from the USMS in finding the missing child. The child’s mother was previously convicted for her actions in the strangulation, assault, and death of one of her children, a four-year-old boy. Additionally, she was wanted on a felony probation violation pertaining to the original charge of cruelty toward a child. On May 15, USMS personnel and RPD personnel arrested the child’s mother without incident in Raleigh. The missing one-year-old was subsequently safely recovered in Raleigh by USMS investigators and handed over to DSS custody.
Eastern District of California:
On Oct. 26, 2023, a 17-year-old female was reported missing by her legal guardian. Information obtained revealed that she was likely staying with her older adult sister who was a known prostitute. The child’s older sister was recently arrested and on pretrial release for Human Trafficking, Pimping, and Pandering. On May 30, USMS personnel determined that the child and her adult sister were staying at a known prostitution and trafficking motel in Oakland, California. USMS personnel from the Eastern District of California coordinated with USMS personnel in the Northern District of California to establish a location for the child and her sister. Management at the hotel confirmed that both sisters had two rooms and had been staying there for some time with an unknown adult male. At one point, USMS observed the three individuals leave the rooms and begin packing their car. Once inside the vehicle, the USMS was able to safely move in and detain all three individuals. The child was then turned over to authorities.
District of Oregon
On May 21, a 12-year-old female went missing from her family home in Portland, Oregon, and had reported allegations of sexual abuse by family members. Law enforcement officers contacted the child through her cell, and she agreed to meet them at a grocery store in the Portland area. The officers received a call back from the child and a friend stating that her father was trying to pull her into his car, and she was scared. USMS investigators were able to intervene and separate the endangered child from her father. The child told law enforcement that she had been raped by two Hispanic males and that her father touched her inappropriately. On May 24, the child was safely recovered and placed in a foster home while the Oregon Department of Human Services (DHS) investigated the allegations. Within 24 hours of being placed in foster care, the foster family kicked the child out of their home. The child then called a Deputy U.S. Marshal (DUSM) that had built rapport with her to ask for assistance. The DUSM subsequently contacted DHS to report the incident. As a result, DHS placed the child in a state-run shelter.
Additional information about the USMS can be found at www.usmarshals.gov.
- B-roll links:
Multiple Orleans Parish Residents Indicted for Violating the Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that on June 27, 2024 a ten-count indictment charging the following Orleans Parish residents:
- WILBERT SMITH, (“SMITH”), age 44
- DAVID KELLUP, (“D. KELLUP”), age 44
- IVAN KELLUP, (“I. KELLUP”), age 41
- VINCENT HENDERSON, (“HENDERSON”), age 50
- ELI MATHINS, (“MATHINS”), age 36
- DEONTAE DORSEY, (“DORSEY”), age 43
- RONALD KELLUP, (“R. KELLUP”), age 76
SMITH, D. KELLUP, I. KELLUP, HENDERSON, MATHINS, and DORSEY were indicted in Count 1 of the indictment, charging them with Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), 841(b)(1)(C), and 846. If convicted of Count 1, they face a minimum of 10 years and up to life imprisonment, up to a $10,000,000 fine, and at least 5 years of supervised release following imprisonment.
SMITH and D. KELLUP were indicted in Count 2 of the indictment, charging them with Possession with intent to distribute over 40 grams of fentanyl and a quantity of cocaine and heroin, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), and § 841(b)(1)(C). If convicted of Count 2, they face a minimum of 5 years and up to 40 years imprisonment, up to a $5,000,000 fine, and at least 4 years of supervised release following imprisonment.
HENDERSON was indicted in Count 3 of the indictment, charging him with Possession with Intent to Distribute a quantity of fentanyl and cocaine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C). If convicted of Count 3, HENDERSON faces up to twenty years imprisonment, up to a $1,000,000 fine, and at least 3 years of supervised release following imprisonment.
HENDERSON was also indicted in Count 4 along with SMITH, D. KELLUP, I. KELLUP, MATHINS, and DORSEY for possessing firearms in furtherance of these drug trafficking crimes, in violation of 18 U.S.C. § 924(c)(1). A conviction on Count 4 carries a mandatory minimum sentence of 5 years up to life imprisonment, up to a $250,000 fine, and up to 5 years of supervised release following imprisonment. Any sentence on Count 4 must run consecutive to any other sentence.
D. KELLUP, SMITH, and MATHINS were also indicted in Counts 5, 6, and 7, respectively, for possessing firearms as convicted felons, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(8). They face up to 15 years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release following imprisonment. All eight individuals were indicted in Count 8 for maintaining a drug-involved premises, in violation of 21 U.S.C. § 856(a) and 18 U.S.C. § 2. Count 8 carries up to 20 years imprisonment, up to a $500,000 fine, and at least 3 years of supervised release following imprisonment. All eight counts also carry a $100 mandatory special assessment fee.
According to the indictment, beginning on a time unknown but continuing until at least May 8, 2024, these seven individuals maintained three residences in the Algiers neighborhood of New Orleans for the purpose of packaging and distributing narcotics, including fentanyl, cocaine, and heroin. Several of the individuals furthered their drug trafficking conspiracy by possessing firearms, which they are prohibited from doing under federal law and also due to their prior felony convictions.
United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of a defendant must be proven beyond a reasonable doubt.
United States Attorney Evans praised the work of the Drug Enforcement Administration, the Louisiana State Police, the Federal Bureau of Investigation, and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Stuart Theriot of the Narcotics Unit.
Home Health Providers to Pay $4.5M to Resolve Alleged False Claims Act Liability for Providing Kickbacks to Assisted Living Facilities and DoctorsRead the Press Release
Guardian Health Care Inc., Gem City Home Care LLC and Care Connection of Cincinnati LLC, home health agencies operating in Texas, Ohio and Indiana, along with their owner Evolution Health LLC (together, the Companies), have agreed to pay $4,496,330 to resolve allegations that they violated the False Claims Act by knowingly providing illegal kickbacks to assisted living facilities and physicians in exchange for Medicare referrals.
This settlement resolves allegations that, from 2013 to 2022, Guardian Health Care, Gem City Home Care and Care Connection of Cincinnati provided lease payments and other valuable benefits, including wellness health services, sports tickets and meals, to numerous assisted living facilities and their residents, as well as certain health care providers, in exchange for referrals of Medicare beneficiaries. The home health agencies then billed Medicare for the home health services they provided to the referred patients.
The Anti-Kickback Statute prohibits the provision of remuneration with the intent to induce referrals of government health care program business. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives. Claims that are knowingly submitted in violation of the Anti-Kickback Statute are ineligible for payment and can violate the False Claims Act.
“It is imperative to ensure that improper financial incentives play no role in decisions regarding patient care,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s resolution demonstrates the department’s commitment to protecting the integrity of federal health care programs and the medical treatment received by their beneficiaries.”
The Companies received credit under the department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases. Among other actions, the Companies disclosed the conduct to the government, identified the individuals involved and assisted in the determination of losses caused to Medicare.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Trial Attorney Elizabeth A. Strawn of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Brandi Stewart for the Southern District of Ohio handled the matter.
The claims resolved by the settlement are allegations only. And there has been no determination of liability.
SettlementAttorney General Merrick B. Garland Statement on the 60th Anniversary of the Civil Rights ActRead the Press Release
The Justice Department issued the following statement today from Attorney General Merrick B. Garland on the 60th anniversary of the Civil Rights Act of 1964:
“The Civil Rights Act of 1964, signed into law 60 years ago today, gave the Justice Department some of its most important tools to protect Americans from discrimination, including at school, in the workplace, in voting, and in places of public accommodation.
Today, we remember the generations of Americans who risked their lives – and the many who sacrificed their lives – in the struggle to claim the rights guaranteed to Black Americans, and to all Americans, under the Constitution.
We recognize the continued dedication of our partners in the civil rights community who are the inheritors of that legacy.
And we honor the public servants across the Justice Department who have worked to fulfill the promise of the Civil Rights Act over the past six decades and continue to do so today.
Before signing the Civil Rights Act of 1964 into law 60 years ago, President Lyndon Baines Johnson addressed the American people, saying, ‘the Civil Rights Act is a challenge to all of us to work in our communities and our States, in our homes and in our hearts, to eliminate the last vestiges of injustice in our beloved country.’
Today, as we mark the 60th anniversary of the Civil Rights Act, the Justice Department renews our commitment to meeting that challenge.”
Trio SentencedRead the Press Release
FORT WAYNE –Three individuals were sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to access device fraud, announced United States Attorney Clifford D. Johnson.
Giovanni Mazzone, 34, of Gilbert, AZ was sentenced to time served and one year of supervised release.
Lucian Neagu, 32, of Fullerton, CA was sentenced to time served and one year of supervised release.
Julian Dumbrava, 36, of Baytown, TX was sentenced to time served and one year of supervised release.
According to documents in the case, in October 2023, the above defendants possessed devices that were installed on ATMs for the purpose of stealing ATM card information.
In general, shimming devices and skimming devices are designed to obtain information from the magstripe on the back of, or the microchip implanted in, credit and debit cards. Both devices are most often accompanied by cameras that are installed on the ATM to capture a customer’s PIN number. These devices are usually placed onto or within the ATM for a limited period of time and then removed. The fraudster then creates fraudulent credit and debit cards using the PIN number and captured data which are then used to illegally obtain goods, services, and currency. TIP: When you use your card at an ATM, gas pump, or other payment keypad, it is a good practice to be mindful of anything unusual with the machine and to cover your hand as you input your PIN number.
This case was investigated by the Federal Bureau of Investigation in coordination with the Indiana State Police and the Huntington Police Department. The case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Readout of the Justice Department Participation in the International Association of Campus Law Enforcement AdministratorsRead the Press Release
The Justice Department supported campus public safety and law enforcement leaders during the annual International Association of Campus Law Enforcement Administrators Conference (IACLEA) from June 24 through June 27, in New Orleans. The conference brought together police chiefs, public safety directors, and security personnel at higher education institutions who are responsible for protecting millions of students worldwide to explore the latest trends and best practices, as well as the challenges facing institutions and communities.
Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) led a featured session, “The Road to 2030: The Next Generation of Campus Leadership,” where he discussed the present and future evolution of campus police and public safety leadership.
In his remarks, Director Dettelbach said, “It is in our DNA to support you in every effort to both prevent and respond to serious threats on and off your campuses. And we are available to talk through any questions you have about evolving threats or concerns that might be on your mind — whether that is firearm safe storage, ghost gun trends in your communities, keeping students safe off-campus in high crime areas.”
Executive Director Paul M. Cell, of the IACLEA said, “IACLEA is proud to be a partner with ATF in addressing the challenges campuses are experiencing today. Under the leadership of Director Dettelbach, the partnership has fostered training opportunities, program development, and collaboration with regional and local ATF agents with the shared mission of creating safe campus learning and living environments.”
Acting Director Justin Long of the Community Relations Service’s (CRS) and Director Hugh Clements of the Office of Community Oriented Policing Services (COPS) also attended. COPS representatives led a session on “Facilitated Dialogue as Conflict Response and Conflict Prevention Strategy on Campus,” that highlighted an ongoing collaboration between COPS, CRS and the Ohio State University’s Moritz College of Law to develop resources to help public safety agencies and communities engage in meaningful dialogue in the aftermath of critical incidents, such as police use of force, identity-based conflict, or hate crime.
COPS and ATF representatives led a panel on the recommendations from the department’s Critical Incident Review on the mass casualty incident at Robb Elementary School, a moderated panel discussion on de-escalation, as well as a session on identifying and documenting privately made firearms (PMFs).
FBI representatives led sessions on FBI’s National Domestic Communications Assistance Center’s (NDAC) resources for Law Enforcement in the digital age. NDCAC serves as a knowledge management hub for evidence collection from communications providers and devices, geolocation capabilities, and lawfully authorized electronic surveillance. The FBI also led a presentation on “Responders' Wellness & Resilience,” which focused on responders’ wellness and resiliency after active shooter and mass shooting incidents.
With the conclusion of this successful IACLEA conference, the Justice Department emphasizes the importance of partnerships with campus law enforcement and continues to closely collaborate with them to promote public safety across the country.
Professor Charged for Operating Multimillion-Dollar Grant Fraud SchemeRead the Press Release
A federal grand jury in the District of Maryland returned an indictment yesterday charging a Pennsylvania man for defrauding the U.S. National Institutes of Health (NIH) of approximately $16 million in federal grant funds.
According to court documents, Hoau-Yan Wang, 67, was a tenured medical professor at a public university’s medical school, as well as a paid advisor and consultant to a publicly traded Texas biopharmaceutical company. From approximately May 2015 through approximately April 2023, Wang allegedly engaged in a scheme to fabricate and falsify scientific data in grant applications made to the NIH on behalf of himself and the biopharmaceutical company. As alleged, the fraudulent grant applications to the NIH sought funding for scientific research of a potential treatment and diagnostic test for Alzheimer’s disease and resulted in the award of approximately $16 million in grants from approximately 2017 to 2021, part of which funded Wang’s laboratory work and salary.
The indictment alleges that Wang’s work under these grants was related to the early developmental phases of the proposed drug and diagnostic test, typically referred to by the U.S. Food and Drug Administration as Phase 1 and Phase 2. Wang’s alleged scientific data falsification in the NIH grant applications related to how the proposed drug and diagnostic test were intended to work and the improvement of certain indicators associated with Alzheimer’s disease after treatment with the proposed drug.
Wang is charged with one count of major fraud against the United States, two counts of wire fraud, and one count of false statements. If convicted, he faces a maximum penalty of 10 years in prison for the count of major fraud, 20 years in prison for each count of wire fraud, and five years in prison for the count of false statements.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI Washington Field Office is investigating the case.
Trial Attorney Andrew Tyler, Deputy Chief Anna Kaminska, and Assistant Chief Leslie Garthwaite of the Criminal Division’s Fraud Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Attorney General Merrick B. Garland Statement on the Supreme Court’s Decision in Fischer v. United StatesRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the Supreme Court’s decision in Fischer v. United States:
“January 6 was an unprecedented attack on the cornerstone of our system of government — the peaceful transfer of power from one administration to the next. I am disappointed by today’s decision, which limits an important federal statute that the Department has sought to use to ensure that those most responsible for that attack face appropriate consequences.
The vast majority of the more than 1,400 defendants charged for their illegal actions on January 6 will not be affected by this decision. There are no cases in which the Department charged a January 6 defendant only with the offense at issue in Fischer. For the cases affected by today’s decision, the Department will take appropriate steps to comply with the Court’s ruling.
We will continue to use all available tools to hold accountable those criminally responsible for the January 6 attack on our democracy.”
Virginia Company and Owner Sentenced for Criminally Filling WetlandsRead the Press Release
Boyd Farm LLC and its owner Frazier T. Boyd III were sentenced yesterday for criminally filling wetlands in Goochland and Louisa Counties, Virginia. Boyd Farm was sentenced to pay a fine of $300,000 and serve a year of probation for a felony violation of the Clean Water Act. Boyd was sentenced to 30 days home confinement and a year of probation.
At various times between 2017 and 2019, Boyd and his company had workers use excavators and other earthmoving equipment to pull vegetation, grub stumps and grade land at three sites in Virginia’s Piedmont region. The work left behind piles of dirt, slash and stumps. Operators hired by Boyd Farm then placed debris from those piles into wetlands and streams at the properties.
The Clean Water Act requires permits for such discharges into covered wetlands and other waters of the United States. Unpermitted discharges like these can destroy habitat and degrade the pollution cleaning function of wetlands. The United States does issue permits to fill wetlands under some conditions. Boyd Farm and Boyd knew of the requirement for these permits but did not seek or obtain them for any of their properties. In 2015, the Environmental Protection Agency (EPA) had issued Boyd Farm an Administrative Order requiring compliance with the Clean Water Act and requiring restoration of impacted wetlands and streams at another property in Goochland County where unpermitted discharges had occurred.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.
EPA’s Criminal Investigation Division investigated the case, with assistance from the Virginia Department of Environmental Quality.
Trial Attorney Elise Kent Bernanke of the Environment and Natural Resources Division and Assistant U.S. Attorney Michael Moore for the Eastern District of Virginia prosecuted the case.
Virginia Businesswoman Sentenced for Employment Tax CrimesRead the Press Release
A Virginia woman was sentenced today to 15 months in prison for not paying employment taxes to the IRS.
According to court documents and statements made in court, Gail Jones, of Dumfries, Virginia, was a co-owner and served as director, president and vice president of parcel delivery service S&G Property Management Inc. (S&G). Between 2013 and 2018, Jones caused income, Social Security and Medicare taxes to be withheld from S&G’s employees. However, Jones did not pay those withholdings to the IRS as she was required to do. To thwart potential IRS levies and other collection activities, Jones opened new bank accounts using other individuals’ social security numbers, new Employer Identification Numbers and variations of her business’ name. Between December 2016 and December 2018, she withdrew over $450,000 in cash from business bank accounts in lieu of paying the taxes owed.
In total, Jones caused a tax loss to the IRS of approximately $950,000.
Additionally, Jones fraudulently applied for two Paycheck Protection Program (PPP) loans, which were part of a COVID-19 relief program intended to provide loans to certain businesses to help them retain their employees or stay afloat during the pandemic. Jones applied for the loans even though S&G was no longer operating. She fraudulently received $20,800 in loans.
In addition to her prison sentence, U.S. District Judge Michael S. Nachmanoff for the Eastern District of Virginia sentenced Jones to three years of supervised release and to pay $950,100.18 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Marissa Brodney of the Tax Division and Assistant U.S. Attorney Kimberly Shartar for the Eastern District of Virginia prosecuted the case.
OptumRx Agrees to Pay $20M to Resolve Allegations that It Filled Certain Opioid Prescriptions in Violation of the Controlled Substances ActRead the Press Release
OptumRx Inc., a prescription drug benefit provider, has agreed to pay $20 million to resolve allegations that it improperly filled certain opioid prescriptions in violation of the Controlled Substances Act.
The settlement resolves an investigation initiated by the Drug Enforcement Administration (DEA) into whether, between April 2013 and April 2015, OptumRx improperly filled certain opioid prescriptions in combination with other drugs such as benzodiazepines and muscle relaxants, commonly referred to as “trinity” prescriptions. The United States alleged that these combination prescriptions, which OptumRx filled primarily from a mail order pharmacy location in Carlsbad, California, raised “red flags” indicating that the prescriptions may not have been intended for legitimate medical use and could lead to abuse or diversion of highly addictive and powerful opioids. The United States also contended that these trinity prescriptions carry significant risk of harm and that these red flags must be resolved prior to filling a controlled substance prescription. During the course of its investigation, the government alleged that OptumRx received numerous trinity prescriptions that raised red flags but filled those prescriptions without always resolving the red flags.
OptumRx reports that the company has instituted enhanced protocols in handing opioid prescriptions since 2017 to reduce the number, dose and duration of opioid prescriptions it dispenses. OptumRx also reports that it instituted more robust concurrent drug utilization review procedures to assist in identifying and not filling prescriptions for dangerous opioid combinations and excess dosing. During the course of the government’s investigation, OptumRx also closed its mail order pharmacy operations in Carlsbad, California.
“Pharmacies providing opioids and other controlled substances have a duty under the Controlled Substances Act to ensure that they fill prescriptions only for legitimate medical purposes,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to work with its law enforcement partners to ensure that pharmacies do not contribute to the opioid addiction crisis.”
“Pharmacies are the last line of defense protecting the public from potentially dangerous and addictive medications,” said U.S. Attorney Tara McGrath for Southern District of California. “Combating the opioid crisis on all fronts includes holding pharmacies accountable if they shirk any part of the responsibilities required in filling prescriptions for potentially harmful drugs.”
“DEA registrants have an obligation to protect the public, not help fuel the opioid epidemic,” said Assistant Administrator Thomas W. Prevoznik of the DEA Diversion Control Division. “The trinity style prescription combination helped fuel the start of the opioid addiction crisis and raises a red flag, which this registrant should have recognized and reacted to rather than putting profits before patients’ safety.”
DEA’s Office of Diversion Control, San Diego Division Office conducted the investigation.
Assistant U.S. Attorneys Joseph Price, Dylan Aste, Betsy Boutelle and Colin McDonald for the Southern District of California and Trial Attorneys Scott B. Dahlquist and Brandon Robers and Assistant Directors Rachael Doud and Gabriel H. Scannapieco of the Civil Division's Consumer Protection Branch represented the United States.
This is the second substantial resolution of an opioid related investigation announced by the Justice Department in recent months. Late last year, the department announced a $12 million resolution and consent decree involving Droguería Betances LLC, one of Puerto Rico’s largest drug distributors. In that case, the United States alleged that Betances failed to report to the DEA hundreds of “suspicious orders” for opioids and other controlled substances distributed to Betances’ pharmacy customers.
The claims resolved by the settlement agreement announced today are allegations only. And there has been no determination of liability.
Attorney General Merrick B. Garland Statement on the Supreme Court’s Order in Moyle v. United StatesRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the Supreme Court’s order in Moyle v. United States:
“The Justice Department filed this lawsuit because the Emergency Medical Treatment and Labor Act, or EMTALA, guarantees essential emergency care to all Americans, no matter which state they live in. If a patient comes into the emergency room with a medical emergency seriously jeopardizing the patient’s life or health, EMTALA requires hospitals to offer the treatment necessary to stabilize that patient — including pregnancy termination, if that is the treatment required to save a woman’s life or prevent serious harm to her health. Today’s order means that, while we continue to litigate our case, women in Idaho will once again have access to the emergency care guaranteed to them under federal law. The Justice Department will continue to use every available tool to ensure that women in every state have access to that care.”
Texas Business Owner Sentenced for Evading Income TaxRead the Press Release
A Texas man was sentenced today to 37 months in prison, three years of supervised release and to pay $529,551 in restitution to the United States for evading taxes on income he earned from his business.
According to court documents, John L. Petrone owned and operated a business that sold an herbal extract known as “kratom,” along with other related products. Petrone did not file individual income tax returns for 2014 through 2019, nor did he pay income taxes for those years, despite earning hundreds of thousands of dollars from his business. During that time period, Petrone attempted to evade his income taxes by opting not to withhold federal taxes from his paychecks, operating the business under different names, dealing in cash, using business bank accounts to pay for personal expenses and lying to the IRS during an audit. In addition, Petrone did not pay his business’s employment taxes.
Through his actions, Petrone caused a tax loss to the IRS of over $529,000.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Assistant Chief David Zisserson and Trial Attorney Andres Chinchilla of the Tax Division prosecuted the case, with assistance and support from the U.S. Attorney’s Office for the Western District of Texas.
Readout of the Pardon Attorney’s Visit to FCI ColemanRead the Press Release
On June 25, Pardon Attorney Elizabeth Oyer and members of her team visited Federal Correctional Institution (FCI) Coleman, the largest Federal Complex in the Federal Bureau of Prisons (FBOP) located in Sumterville, Florida. The Pardon Attorney and her team provided a series of educational sessions about the federal clemency process and answered questions from FBOP staff and incarcerated individuals at the low-security, medium-security and minimum-security camp. During their visit, the Pardon Attorney and her team met with approximately 1,200 incarcerated individuals and FBOP staff members.
The visit to FCI Coleman was the eighth in a series of quarterly educational events that the Pardon Attorney is conducting for incarcerated individuals and staff at different FBOP locations.
After visiting FCI Coleman, the Pardon Attorney met with U.S. Attorney Rodger Handberg for the Middle District of Florida to discuss the clemency process.
These educational sessions within the FBOP, followed by stakeholder meetings, are part of the initiative by the Office of the Pardon Attorney to increase the accessibility and transparency of the clemency process through education and community engagement.
Justice Department Announces It Will Provide Technical Assistance to Uvalde Police Department Under COPS Office’s Collaborative Reform InitiativeRead the Press Release
The Justice Department’s Office of Community Oriented Policing Services (COPS Office) announced today it will engage with the Uvalde Police Department (UPD) through the COPS Office Collaborative Reform Initiative’s Critical Response program.
The COPS Office, in conjunction with Jensen Hughes, a Critical Response provider, will provide a range of technical assistance services and opportunities associated with UPD’s training, leadership, and community partnerships. The goal of this technical assistance is to enhance UPD’s strategic training plan, leadership development programs, and community trust-building initiatives.
“Since releasing its report ‘Critical Incident Review: Active Shooter at Robb Elementary’, the Justice Department has continued to work with the Uvalde community, offering a range of technical assistance on topics that were identified in the report,” said Acting Associate Attorney General Benjamin C. Mizer. “Today’s announcement will formalize that effort and enable the Department to enhance its efforts to help both the community and the police department implement the recommendations contained in the report.”
“The COPS Office remains committed to the Uvalde community and the Uvalde Police Department on the issues, challenges, and deficiencies the report identified,” said Director Hugh T. Clements, Jr. of the COPS Office. “I know that the work we are going to do moving forward will be a tremendous resource as the UPD continues with the important work they are dedicated to carrying out.”
The Collaborative Reform Initiative encompasses three programs offering expert services to state, local, territorial, and Tribal law enforcement agencies: the Collaborative Reform Initiative Technical Assistance Center, Critical Response, and Organizational Assessment programs (complete details of these programs can be found at www.cops.usdoj.gov/collaborativereform). Managed out of the COPS Office, this continuum of services is designed to build trust between law enforcement agencies and the communities they serve; improve operational efficiencies and effectiveness; enhance officer safety and wellness; build agencies’ capacity for organizational learning and self-improvement; and promote community policing practices nationwide.
The Critical Response program is designed to provide targeted technical assistance (TA) to state, local, territorial, and Tribal law enforcement agencies experiencing high-profile events, major incidents, or sensitive issues of varying need. Critical Response is highly customizable by providing flexible assistance to law enforcement agencies that have recently experienced a critical incident or identified an issue of significant community concern in their department’s operations. The TA generally falls into three categories: (1) immediate delivery of TA to address a pressing and acute need, (2) data analysis, and (3) after-action reviews to understand and learn from law enforcement and public safety responses to critical incidents or issues.
The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to more than 13,000 state, local, territorial, and Tribal law enforcement agencies to fund the hiring and redeployment of approximately 138,000 officers.
Virginia Couple Sentenced for Forcing Victim to Work at Their Gas Station and Convenience Store for over Three YearsRead the Press Release
A Virginia couple was sentenced today for compelling the labor of the man’s younger cousin at their gas station and convenience store for over three years. The couple has since divorced.
Harmanpreet Singh, 31, was sentenced to 135 months in prison and Kulbir Kaur, 43, was sentenced to 87 months in prison. Additionally, the court ordered Singh and Kaur to pay the victim $225,210.76 in restitution.
“The defendants exploited their relationship with the victim to lure him to the United States with false promises that they would help enroll him in school,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendants confiscated the victim’s immigration documents and subjected him to threats, physical force and mental abuse to coerce him to work long hours for minimal pay. This sentence should send a strong message that such forced labor will not be tolerated in our communities. The Justice Department is committed to fully enforcing our federal human trafficking statutes to vindicate the rights of survivors and hold human traffickers accountable for such shameful exploitation of vulnerable victims.”
“The crimes committed by these defendants are not merely violations of the law; they are an afront to humanity,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “These defendants preyed on the victim’s earnest desire to attain an education and improve his life. Instead, they deprived him of the most basic human needs and robbed him of his freedom. We remain steadfastly committed to securing justice for victims of human trafficking.”
“The defendants lured the victim to travel from India to Virginia to work at their gas station where they exploited him for over three year,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “The FBI will continue to work in all communities to stop forced labor trafficking and the psychological and physical violence that comes with it.”
Following a two-week trial in January, a federal jury in the Eastern District of Virginia convicted Singh and Kaur of conspiracy to commit forced labor, forced labor, harboring for financial gain and document servitude. The evidence presented at trial demonstrated that, in 2018, the defendants enticed the victim, Singh’s cousin and then a minor, to travel to the United States from India with false promises of helping enroll him in school. After the victim arrived in the United States, the defendants took his immigration documents and instead forced him to provide labor and services at Singh’s store for over three years, between March 2018 and May 2021.
According to the evidence presented at trial, Singh and Kaur compelled the victim to work at the store — including cleaning, cooking, stocking and handling the cash register and store records — between 12 to 17 hours a day, nearly every day, for minimal pay. Singh and Kaur used various coercive means, including confiscating the victim’s immigration documents and subjecting the victim to physical abuse, threats of force and other serious harm, and, at times, degrading living conditions to compel him to continue working.
The evidence further showed that the defendants left the victim at the store to sleep in a back office for days at a time on multiple occasions, limited his access to food, refused to provide medical care or education, used surveillance equipment to monitor the victim both at the store and in their home, refused his requests to return to India and made him overstay his visa. The defendants also forced the victim to marry Kaur and used that marriage to threaten to take the victim’s family’s properties or falsely report him to the police if he left. The evidence showed that Singh pulled the victim’s hair, slapped and kicked him when he requested his immigration documents back and tried to leave and, on three different occasions, threatened the victim with a revolver for trying to take a day off and for trying to leave.
The FBI Richmond Field Office investigated the case.
Assistant U.S. Attorneys Avi Panth and Peter S. Duffey for the Eastern District of Virginia and Trial Attorney Matthew Thiman of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Two Men Sentenced for Orchestrating Multimillion-Dollar Cryptocurrency Securities Fraud and Wire Fraud SchemesRead the Press Release
Two men were sentenced for manipulating the price of a security and scheming to defraud investors in connection with the purchase of Hydrogen Technology’s cryptocurrency, HYDRO.
Shane Hampton, 32, of Philadelphia, was sentenced today to two years and 11 months in prison. His co-conspirator, Michael Kane, 39, of Miami Beach, Florida, was sentenced yesterday to three years and nine months in prison.
“Shane Hampton, Michael Kane, and their co-conspirators defrauded investors by using a trading bot to manipulate the price of their company’s cryptocurrency,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “In this case, for the first time, a jury in a federal criminal trial found that a cryptocurrency was a security and that manipulating cryptocurrency prices was securities fraud. This prosecution and the sentences imposed today should serve as a warning: The Criminal Division will not hesitate to use all tools at its disposal—including the federal securities laws—to protect the integrity of cryptocurrency markets.”
According to court documents and evidence presented at trial, Kane was the co-founder and CEO of Hydrogen Technology, and Hampton was the Head of Financial Engineering at the company. Kane and Hampton hired an outside firm, Moonwalkers Trading Limited of South Africa, to manipulate the price of HYDRO on a cryptocurrency exchange headquartered in the United States by using an automated trading application or “bot” to flood the market with fake and fraudulent orders from October 2018 to April 2019. Kane, Hampton, and their co-conspirators executed approximately $7 million in “wash trades” and placed over $300 million in “spoof trades” for HYDRO through the bot. These manipulative trades were designed to, and did, fraudulently induce retail investors to purchase HYDRO. Through the artificially inflated prices that resulted from their manipulation efforts, Kane, Hampton, and their co-conspirators made approximately $2 million in profits from selling HYDRO over roughly 10 months.
Kane pleaded guilty in November 2023 to one count of conspiracy to commit securities price manipulation, one count of conspiracy to commit wire fraud, and two counts of wire fraud. Hampton was convicted by a federal jury on Feb. 7 of one count of conspiracy to commit securities price manipulation and one count of conspiracy to commit wire fraud. The jury unanimously found that the defendants’ sales of HYDRO constituted investment contracts, making the token a security under federal securities law. Hampton’s case was the first criminal jury trial in which a cryptocurrency was found to be a security.
Two other co-conspirators, Andrew Chorlian and Tyler Ostern, pleaded guilty in May 2023 to one count of conspiracy to commit securities price manipulation and wire fraud, and both were previously sentenced.
The FBI Miami Field Office investigated the case.
Assistant Chief Scott Armstrong and Trial Attorney Andrew Jaco of the Criminal Division’s Fraud Section prosecuted the case.
Fact Sheet: Two Years of the Bipartisan Safer Communities ActRead the Press Release
June 25 marks the second anniversary of the enactment of the Bipartisan Safer Communities Act (BSCA) – a landmark law focused on reducing and protecting communities from gun violence. The Justice Department has pursued a cross-department approach with the new tools provided in BSCA, from enhanced background checks to grantmaking. Some of the Department’s most significant accomplishments made possible by BSCA follow below.
Publishing an Interim Final Rule (IFR) to Prevent Stolen Firearm from Being Resold
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On June 25, the Department published an IFR that, for the first time, will enable federal firearm licensees (FFLs) to voluntarily check the FBI’s National Crime Information Center records to see if a firearm offered for sale was stolen.
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This IFR will help keep stolen firearms out of FFL inventories, and increase reporting of stolen firearms, helping law enforcement develop leads into firearm theft and trafficking.
Enhanced Checks for Purchasers Under 21
BSCA mandates enhanced background checks for firearm purchasers under the age of 21 (“U21 enhanced checks”), specifically requiring checks of juvenile criminal history and mental health records.
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Since BSCA’s passage:
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Over 260,000 U21 enhanced checks have been completed;
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800 firearm purchases were prevented solely because the enhanced U21 checks revealed that the purchasers were prohibited by law from purchasing or possessing firearms.
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Fighting Illegal Trafficking in Firearms
BSCA created new criminal offenses for unlawfully trafficking in firearms and for straw-purchasing a firearm on behalf of a prohibited person.
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To date, 525 defendants, in 280 cases, have been charged under these new trafficking and straw purchasing provisions. These cases include significant prosecutions of firearms trafficking linked to transnational cartels and narcotics distribution.
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Coordination is ongoing with non-Justice Department federal law enforcement to identify criminal investigations eligible for application of new criminal provisions.
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ATF’s anti-straw-purchasing campaign “Don’t Lie for the Other Guy” was expanded, with new events in St. Louis, Atlanta, Las Vegas, Fort Worth, Texas, Jackson, Mississippi, and Chantilly, Virginia.
Narrowing the Boyfriend Loophole
BSCA narrowed the “boyfriend loophole” by prohibiting those convicted of misdemeanor crimes of domestic violence (MCDVs) from possessing firearms when those crimes occurred in the context of a dating relationship.
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Nearly 3,000 firearm purchases in 2024 and over 10,000 since 2023 have been denied because of an MCDV conviction (including but not limited to crimes that took place in a dating relationship).
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More than 2,000 entries have been submitted into the FBI’s background check system (NICS), recording an MCDV conviction involving a dating relationship.
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Efforts are ongoing to educate local law enforcement and prosecutors on this new prohibition, including:
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Webinars in 27 states, with 13 more planned;
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NICS trainings attended by over 500 law enforcement agencies;
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A BSCA webinar hosted by EOUSA and attended by nearly 1,000 prosecutors and agents; and
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The Department’s multi-component Domestic Violence Community of Interest (DV-COI) issuing an updated MCDV Reference Card, including guidance on the dating-relationship provision of BSCA.
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Funding Violence Prevention and Intervention Programs
BSCA authorized a total of $1.4 billion in funding for new and existing violence-prevention and intervention programs between 2022 and 2026. Thus far, the Department has provided:
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Over $238 million in Byrne State Crisis Intervention Program grants for state crisis intervention court proceedings.
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Over $73 million in supplemental OJP STOP School Violence grants to enhance school security.
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In part through BSCA funding:
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more than 3,500 schools enhanced intervention teams;
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more than 2,300 schools formed intervention teams; and
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141 schools implemented school safety plans.
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Schools receiving grant funding had licensed professionals assess 95% of those who received clinical threat assessments.
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$40 million in supplemental COPS School Violence Prevention Program grants.
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Over $94 million in supplemental Community Violence Intervention and Prevention Initiative (CVIPI) grants.
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Nearly $75 million in National Criminal History Improvement Program (NCHIP) Supplemental Funding.
Engaged in the Business of Dealing in Firearms
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From FY21 to FY23, there was a 60% increase in the number of defendants charged with engaging in the business of importing, manufacturing, or dealing in firearms without a license.
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In April 2024, the Department issued a Final Rule (EIB Rule) implementing the BSCA statutory definition clarifying when a person is “engaged in the business” of dealing in firearms, and thus required to obtain a federal firearms license.
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The EIB Rule will promote increased compliance with federal gun laws, thereby increasing the number of background checks performed, and expanding the availability of records for the tracing of crime guns by law enforcement.
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Readout of Deputy Attorney General Lisa Monaco’s Trip to BrusselsRead the Press Release
Deputy Attorney General (Deputy AG) Lisa Monaco traveled to Brussels last week to lead the U.S. delegation at the U.S.-EU Justice and Home Affairs Ministerial and reaffirm the Justice Department’s commitment to a critical alliance that combats shared risks to global security.
The Ministerial brings together leadership from the Justice and Home Affairs Ministries of the European Union and the U.S. Departments of Justice and Homeland Security to strengthen transatlantic collaboration. The Ministers focused on addressing persistent threats to our nations, including organized crime, terrorism, cybercrime, and foreign malign influence — especially by nation-states seeking to sow discord and further their autocratic agendas amid this year’s global elections, when over four billion people are expected to vote. They also discussed international law enforcement collaboration to disrupt trafficking of cocaine and synthetic drugs, particularly fentanyl, as well as AI — including AI’s potential to enhance law enforcement operations and the risk that it could supercharge criminal activity.
During the Ministerial, the officials reaffirmed their resolute support for Ukraine and unwavering resolve to hold Russia accountable for war crimes, atrocities, and the crime of aggression. They reiterated the need for sustained coordination between the U.S. and EU to deprive the Russian war machine of funding and supplies — with the Deputy AG underscoring the successful efforts of the Department’s Disruptive Technology Strike Force and Task Force KleptoCapture to enforce export controls and the sweeping sanctions imposed on Russia for its unprovoked aggression against Ukraine. The officials also emphasized their commitment to supporting anti-corruption efforts in Ukraine.
While in Brussels, the Deputy AG convened an international meeting of the Justice Department’s Justice AI Initiative with Member of the European Parliament (MEP) Eva Maydell and leaders from the European Parliament, which recently passed the EU AI Act—the first comprehensive legislative framework to govern the integration of AI into society. Launched by Deputy AG Monaco earlier this year, Justice AI brings together stakeholders across civil society, industry, academia, and government to share expertise and a wide range of perspectives on both the promise of AI and the perils of its misuse.
The Deputy AG and MEPs discussed how AI is changing the way crimes are committed in the United States and in Europe — from intensifying cyberattacks, to making fraud scams more believable, to creating child sexual abuse material. They also focused on the threat of malign state actors using AI to undermine global elections this year, and the MEPs shared observations and lessons learned from recent European elections. The Deputy AG underscored that the Justice Department will remain vigilant to foreign adversaries abusing AI to accelerate online hate and disinformation, imitate trusted sources of information, and proliferate deepfakes.
During her trip, the Deputy AG also held bilateral meetings with European Commissioner for Home Affairs Ylva Johansson and Belgian Minister of Justice Paul Van Tigchelt to highlight areas for continued collaboration between the Justice Department and our European partners. She met with United States Ambassador to the European Union Mark Gitenstein and United States Ambassador to Belgium Michael Adler, and also visited the U.S. Mission to the European Union and the U.S. Embassy in Belgium for a briefing with U.S. officials on their work with our European allies and to thank them for their service.
Omaha Man Sentenced for Wire FraudRead the Press Release
United States Attorney Susan Lehr announced that Eric Everroad, 53, of Omaha, NE, was sentenced on June 24, 2024, in federal court in Omaha for wire fraud. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Everroad to 12 months and 1 day imprisonment. There is no parole in the federal system. After Everroad’s release from prison, he will begin a 3-year term of supervised release. As part of his sentence, Everroad was ordered to pay Menards $478,674.94 in restitution.
From December of 2006 until September 22, 2022, Everroad was an employee of Menards and was employed at the location at 708 N 120th Street in Omaha, Nebraska location as the Building Materials Manager.
Beginning in 2017, Everroad devised and carried out a scheme in which he allowed a contractor to make purchases from Menards using wrongfully obtained store credits. In doing so, Everroad created false returns to generate store credits. Everroad also allowed for the contractor to make purchases using other customers legitimate store credit. The contractor would then pay Everroad directly using cash or checks for the goods that were wrongfully obtained from Menards. As a result of this scheme, Everroad received $478,674.94 from the contractor between March 28, 2017, and September 14, 2022. Everroad was confronted by loss prevention officers with Menards and admitted that he was generating false returns to create store credits that the contractor used to make purchases or allowed the contractor to make purchases on other customer’s credits. Everroad admitted to the contractor paying him directly.
The owners of the contractor involved were interviewed and confirmed this arrangement with Everroad. The contractor explained that they received a benefit in doing so because Everroad allowed for them to pay for the materials after the job was completed which assisted with the business’s cash flow.
As part of this scheme, Everroad would deposit the checks from the contractor in his personal checking account at Centris Federal Credit Union. This caused Centris Federal Credit Union to electronically transmit, images of the checks by means of wire communication in interstate commerce from Nebraska to the Federal Reserve Bank of Atlanta, which is located in the state of Georgia.
This case was investigated by the Federal Bureau of Investigation.
Former Alabama Sheriff’s Deputy Sentenced for Federal Civil Rights Offense of Excessive ForceRead the Press Release
Former Elmore County, Alabama, Sheriff’s Deputy Blake Hicks, 33, was sentenced today to 29 months in prison and three years of supervised release for depriving an arrestee of his civil rights under color of law.
According to documents and statements made in court, Hicks willfully used unreasonable force against an arrestee, identified as T.Q. Specifically, without legal justification, Hicks punched and kicked T.Q. in or around the head while T.Q. was handcuffed and incapacitated on the ground. T.Q. suffered a broken cheekbone, concussion and lacerations from Hicks’ assault.
“This defendant had a duty to respect the rights of people in his custody and to keep them safe,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Instead, he violently assaulted a person under arrest who was not resisting or threatening harm to the defendant or the public. The Justice Department remains firmly committed to holding accountable law enforcement officials who abuse their powers and use excessive force against people in custody.”
“We expect law enforcement officers to maintain order and ensure public safety,” said U.S. Attorney Jonathan S. Ross for the Middle District of Alabama. “These are tremendous responsibilities. Fortunately, the vast majority of officers serve honorably. Hicks fell short of his obligation to protect and serve. The sentence imposed today ensures that he is held responsible for his actions. Failure to hold Hicks accountable would discredit the noble service of other officers and weaken the public’s trust in law enforcement.”
The FBI Mobile Field Office investigated the case.
Trial Attorney Laura-Kate Bernstein and Special Litigation Counsel Michael J. Songer of the Civil Rights Division and Assistant U.S. Attorney Eric Counts for the Middle District of Alabama are prosecuting the case.
Sikorsky Support Services Inc. and Derco Aerospace Inc. Agree to Pay $70M to Settle False Claims Act Allegations of Improper Markups on Spare Parts for Navy Trainer AircraftRead the Press Release
Sikorsky Support Services Inc. (SSSI), a Delaware corporation headquartered in Stratford, Connecticut, and Derco Aerospace Inc. (Derco), a Wisconsin corporation headquartered in Milwaukee, Wisconsin, have agreed to pay $70 million to resolve False Claims Act allegations that they overcharged the Navy for spare parts and materials needed to repair and maintain the primary aircraft used to train naval aviators.
In a lawsuit filed in the U.S. District Court for the Eastern District of Wisconsin, the Justice Department alleged that SSSI and Derco, which were both wholly-owned subsidiaries of the same parent company, knowingly entered into an improper cost-plus-percentage-of-cost (CPPC) subcontract. Under that contract, SSSI agreed to purchase parts from Derco at the cost that Derco paid other suppliers for those parts, plus a fixed 32% markup. SSSI, in turn, submitted cost vouchers to the Navy for reimbursement of the amounts it paid to Derco. The government alleged that, by failing to disclose that the costs claimed by SSSI were the product of an illegal CPPC subcontract between SSSI and Derco, SSSI and Derco knowingly presented false and fraudulent cost vouchers to the Navy. The district court ruled that Derco’s markup violated a federal statute barring CPPC contracting, which Congress prohibited because it gives suppliers incentive to drive up government costs, as well as the terms of the prime contracts between SSSI and the Navy.
“Government contractors must ensure their subcontracting arrangements comply with the law and with their contractual obligations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the Justice Department will ensure that government contractors do not skirt the law and engage in self-dealing that may artificially inflate their charges at the expense of the American taxpayers.”
“The U.S. Attorney’s Office is committed to preventing fraud and protecting taxpayer money,” said U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin. “Government contractors must put compliance with the law ahead of profits. This settlement makes the United States whole for the inflated costs arising from SSSI’s and Derco’s illegal subcontract deterring future violations of the law.”
“Today’s settlement agreement should serve as a strong deterrent for those who seek to exploit the Department of Defense's procurement process,” said Special Agent in Charge Darrin K. Jones of Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “This investigation is part of an ongoing effort by the Defense Criminal Investigative Service and our partners to aggressively investigate defective pricing and cost mischarging schemes that put American taxpayer dollars at risk.”
“Overinflation of parts and material costs for the repair and maintenance of aircraft affected naval air training and is a disservice to the American taxpayer,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS continues to safeguard the Department of the Navy’s warfighting efforts from economic crimes by upholding the integrity of the defense acquisition process.”
The settlement resolves a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The Act permits the United States to intervene and take over responsibility for litigating these cases, as the United States did here. The qui tam case is captioned United States ex rel. Patzer v. Sikorsky Aircraft Corp., Sikorsky Support Services Inc., and Derco Aerospace Inc., Case No. 11-0560 (E.D. Wis.) and was brought by Mary Patzer, a former employee of Derco.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Wisconsin, with assistance from DCIS.
Trial Attorneys Alan Gale, Nelson Wagner and Gary Newkirk of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Michael Carter for the Eastern District of Wisconsin handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementJustice Department Opens Application Period for Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
The Justice Department today announced the opening of the application period for federally recognized Tribes and intertribal consortia to participate in the Tribal Access Program (TAP) for National Crime Information. TAP improves public safety by providing federally recognized Tribes the ability to access and exchange data with national crime information databases for authorized criminal justice and non-criminal justice purposes, such as the FBI’s National Crime Information Center (NCIC).
“The Department’s Tribal Access Program is a critical asset that Tribes can deploy to increase safety and justice in their communities,” said Deputy Attorney General Lisa Monaco. “Year in and year out, TAP’s value – enabling Tribes to access and exchange federal criminal justice information – has proven indispensable in advancing Tribal public safety across the country. I encourage all eligible Tribes to participate.”
“The Tribal Access Program is a highly valuable resource which aids in facilitating additional support to law enforcement partners and the communities they serve,” said FBI Deputy Director Paul Abbate. “TAP gives Tribal partners a mechanism to share and collaborate on time-sensitive information that can be used to help better serve and protect their communities. The program has already experienced tremendous success and this application period offers an opportunity to further expand this important tool to even more partners.”
The Department will accept TAP applications from June 24 to Aug. 30. Tribes selected to participate will be notified in September. There are currently 132 federally recognized Tribes participating in TAP.
The program provides software, hardware, and training, as well as a web-based application and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI Criminal Justice Information Services (CJIS) systems.
Using TAP, Tribes have shared information about missing persons; entered domestic violence orders of protection for nationwide enforcement; registered convicted sex offenders; run criminal histories; located fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
“The Cherokee Nation has been participating in TAP for many years,” said Senior Director Justice Services Suzanne Drywater of the Cherokee Nation. “From sex offender registrations, law enforcement, foster home certification, human resources, and child support, our Tribe has been able to exercise our sovereignty, and TAP has proven to be an invaluable resource that we use daily in a multitude of ways.”
“TAP provides the Suquamish Tribal Police Department with access to national criminal justice information to properly conduct criminal investigations and to make NICS entries to prevent persons with legal restrictions from purchasing firearms,” said Administrative Services Manager Lisa Sparks of the Suquamish Tribal Police Department.
For Tribes that are considering applying, TAP staff will be conducting informational webinars describing the program and its capabilities. Webinars will be offered throughout July and August. For more information about TAP, including webinar dates, times, and access information, visit www.justice.gov/tribal/tribal-access-program-2024-applications.
To qualify for funding, federally recognized Tribes must have – and agree to use TAP for – at least one of the following:
- A Tribal sex offender registry authorized by the Adam Walsh Child Protection and Safety Act;
- A Tribal law enforcement agency that has arrest powers;
- A Tribal court that issues orders of protection; or
- A Tribal government agency that screens individuals for foster care placement or that investigates allegations of child abuse/neglect.
TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking; the Office of Community Oriented Policing Services; the Office for Victims of Crime; and the Office on Violence Against Women. TAP is co-managed by the Department’s Office of the Chief Information Officer and Office of Tribal Justice.
Florida Fisherman Pleads Guilty to Tax EvasionRead the Press Release
A Florida man pleaded guilty yesterday to evading taxes on income he earned from commercial fishing in Massachusetts.
According to court documents and statements made in court, Christopher Garraty, of New Port Richey, and formerly of Newport and East Greenwich, Rhode Island, worked as a commercial fisherman and deckhand for fishing companies operating out of New Bedford, Massachusetts. Despite earning substantial income working as a fisherman, Garraty did not file until 2012 any federal income tax returns for tax years 2002 through 2011. When he filed the delinquent returns, he reported that he owed a total of approximately $234,497 in taxes for those nine years. But even after reporting that he owed taxes, Garraty did not make any payments to the IRS. In addition, Garraty did not file returns for 2015 through 2018 despite earning approximately $600,000 in fishing income across those years and owing approximately $179,382 in taxes.
To thwart the IRS from assessing or collecting his outstanding taxes, Garraty regularly cashed his paychecks at the issuing bank to conceal the source and disposition of his income. Garraty did not deposit a significant portion of his cashed paychecks into his bank accounts. Moreover, when his paycheck was over $10,000, Garraty frequently cashed the paycheck at the issuing bank and then immediately made multiple cash deposits of less than $10,000 into his bank account to avoid triggering the bank’s reporting requirements. He used the cash to fund his lifestyle to further conceal his financial activity.
In total, Garraty caused a tax loss to the IRS of approximately $413,879.
Garraty is scheduled to be sentenced on Sept. 17 and faces a maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties. A federal judge for the U.S. District Court for the District of Massachusetts will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Matthew L. Cofer of the Justice Department’s Tax Division and Assistant U.S. Attorney Victor Wild for the District of Massachusetts are prosecuting the case.
Attorney General Merrick B. Garland Statement on Supreme Court’s Decision in United States v. RahimiRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the Supreme Court’s decision in United States v. Rahimi:
“The Supreme Court’s decision today in United States v. Rahimi upholds Congress’s longstanding prohibition on the possession of firearms by people subject to domestic-violence restraining orders. That law protects victims by keeping firearms out of the hands of dangerous individuals who pose a threat to their intimate partners and children.
As the Justice Department argued, and as the Court reaffirmed today, that commonsense prohibition is entirely consistent with the Court’s precedent and the text and history of the Second Amendment.
The Justice Department will continue to enforce this important statute, which for nearly 30 years has helped to protect victims and survivors of domestic violence from their abusers. And we will continue to deploy all available resources to support law enforcement, prosecutors, courts, and victim advocates to address the pervasive problem of domestic violence.”