District Not Recorded

WASHINGTON – One hundred and two members and associates of transnational organized criminal groups operating in the United States have been charged in indictments unsealed today in Los Angeles; Santa Ana, Calif.; Miami and Denver. Today, teams of federal, state and local authorities have arrested more than 80 of the 102 charged defendants, with arrests expected to continue throughout the day.

 

The charges were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney André Birotte Jr. for the Central District of California; U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida; Executive Assistant Director Shawn Henry of the FBI; members of the Eurasian Organized Crime Task Force in Los Angeles; and other federal, state and local law enforcement agencies.

 

“Today’s indictments allege literally hundreds of criminal acts in three states – from extortion and kidnapping to firearms trafficking and health care fraud,” said Assistant Attorney General Lanny A. Breuer of the Criminal Division. “The common denominator among these defendants and their criminal enterprises is the use of violence and intimidation to commit crimes for profit. But we are determined to fight back. In less than one month, the Justice Department has announced the largest one-day takedown against La Cosa Nostra, coordinated a nationwide gang takedown and, today, arrested more than 80 Armenian Power members, associates and others with ties to organized crime. These groups bring fear into our communities, defraud innocent victims, and put the safety and security of our neighborhoods at risk. We are taking an aggressive stand against these organized criminal groups and will continue our efforts to put them out of business.”

 

“The Southern California indictments that target the Armenian Power organized crime enterprise provide a window into a group that appears willing to do anything and everything illegal to make a profit. These types of criminal organizations – through the use of extortions, kidnappings and other violent acts – have a demonstrated willingness to prey upon members of their own community,” U.S. Attorney Birotte. “As we have seen in Los Angeles and elsewhere, these groups also engaged in various fraud schemes that clearly have had a significant impact on financial institutions and their customers who have lost millions of dollars and lost their sense of security through identity theft and credit card fraud.”

 

“Organized crime relies on extortion and the intimidation of victims through violence and fear,” said U.S. Attorney Ferrer. “Today’s takedown has removed 100 members and associates of organized crime groups from the streets of Miami, Los Angeles and Denver. We stand firm in our resolve to help eliminate organized criminal activity, be it domestic or transnational.”

 

“We have seen organized crime spread from shakedowns on street corners to complex cyber schemes, human trafficking and other crimes perpetrated across international borders,” said Executive Assistant Director Shawn Henry of the FBI. “Transnational enterprises are siphoning hundreds of millions of dollars from our economy to perpetuate their cycle of greed.”

 

In Los Angeles, two indictments charge 88 defendants with a wide variety of violent and fraud-related crimes. The alleged crimes include kidnapping, extortion, assault, witness intimidation, bank fraud, credit card fraud and drug distribution. Numerous defendants are alleged to be members and associates of Armenian Power (AP), a racketeering enterprise with a significant presence in Los Angeles.

 

According to the indictments, AP’s membership consists primarily of individuals whose heritage goes back to Armenia and other Eastern Bloc countries. AP is an international organized crime group that started as a street gang in East Hollywood, Calif., in the 1980s.

 

A 134-count indictment (U.S. v. Darbinyan, et al) charges 29 of its 70 defendants with violating the Racketeer Influenced and Corrupt Organizations Act, or RICO, and alleges a host of illegal activities, including fraud schemes involving identify theft, credit card skimming and manufacturing of counterfeit checks. The financial fraud crimes allegedly committed on behalf of AP were highly sophisticated, targeting thousands of victims and resulting in millions of dollars of actual and intended losses to banks and individual victims.

 

Among the schemes charged in the Darbinyan indictment is a bank fraud and counterfeit credit card scheme that victimized hundreds of customers of 99 Cents Only Stores throughout Southern California when AP members and associates allegedly installed sophisticated “skimming” devices to steal customer account information. According to the Darbinyan indictment, these devices gave the AP members information, which they used to create counterfeit debit cards and credit cards, and steal thousands of dollars from the accounts.

 

In addition, AP members allegedly engaged in a large-scale check fraud scheme using a wide network of associations in which they unlawfully obtained customer information for high-value bank accounts, impersonated the bank customers to acquire checks, and then cashed and deposited checks in an effort to deplete the accounts. At times, members of the conspiracy allegedly went to victims’ residences to steal bank checks that had been mailed to them.

 

In addition to the RICO count that includes nearly 450 alleged overt acts, the indictment charges AP members with kidnapping, extortion, bank fraud, aggravated identity theft, credit card fraud, marijuana distribution, conducting an illegal gambling business and numerous firearms offenses. In one kidnapping scheme, several AP members allegedly seized a victim and forced him to pay ransom by taking him to an auto body shop belonging to an AP member and threatening him with violence. Several defendants allegedly targeted another victim in an extortion scheme lasting several months, in which they threatened the victim and his family in order to extract repeated payments from the victim. The indictment alleges that the defendants repeatedly possessed and distributed drugs and firearms. During the course of the investigation, law enforcement made numerous seizures of marijuana grows, firearms, ammunition and skimming devices.

 

The second California indictment (U.S. v. Sharopetrosian, et al) was returned by a federal grand jury in Santa Ana and charges 20 defendants, two of whom are also charged in the Darbinyan indictment. In addition to alleging schemes similar to those alleged in the Darbinyan indictment, the Sharopetrosian indictment alleges that AP members engaged in a bank fraud scheme that targeted elderly and vulnerable victims. Members of AP allegedly joined with members of other gangs and allegedly obtained confidential information about bank accounts. The conspirators paid bank insiders for the confidential information, which included social security numbers and passwords used to access the accounts. According to the indictment, the conspirators then used that information to take control of the bank accounts and stole at least $10 million from hundreds of accounts.

 

The investigation of AP also revealed that its members took great efforts to conceal their criminal activities from law enforcement, and some continued to be involved in various schemes even after they were incarcerated. Two of the defendants are accused of using smuggled mobile phones to coordinate bank fraud schemes while in state prison, and one of those incarcerated defendants allegedly helped organize a scheme to threaten and extort another person while still in prison.

 

According to the Darbinyan indictment, AP is closely allied with the Mexican Mafia, a prison gang that controls much of the narcotics distribution and other criminal activities within California correctional facilities. In addition to its connections to criminal groups operating in California, such as the Mexican Mafia, AP leadership is alleged to maintain ties to Armenia and Russia and to deal directly with high-level Armenian/Russian organized crime figures, both within the United States and abroad. Among those high-level crime figures are traditional “Thieves-in-Law,” who are used to resolve disputes and address criminal activity. According to the indictment, because of its large network of members and associates, its demonstrated ability to carry out acts of violence, and its strong relationship with the Mexican Mafia, Armenian Power leaders interact with traditional Thieves-in-Laws as equals. At times, AP members and associates confront and commit acts of violence against associates of traditional Thieves-in-Law in a demonstration of the authority of AP leadership.

 

In addition to the federal indictments, the Los Angeles County District Attorney has charged 11 defendants in California state court, bringing the total number of AP members charged with crimes to 99.

 

Also today, in a related case, 13 defendants were charged in three indictments unsealed in Miami with extortion conspiracy, credit card fraud, money laundering, smuggling of firearms and health care fraud, among other crimes. According to the Miami court documents, several of the defendants maintain associations with members and associates of AP as well as with a “thief-in-law” who was arrested in the Southern District of New York in October 2010. According to court documents, Aram Khranyan, 41, of Sunny Isles Beach, Fla., was the “overseer” of the extortion conspiracies and maintains strong ties to Armenia and Russia.

 

In addition, according to court documents, Khranyan entered into a false marriage with Mira Shatkhin, 35, of Sunny Isles Beach, in order to obtain permanent legal status in the United States. Three defendants (Andranik Itchmelyan, 48, of Davie, Fla.; Gegam Kalashyan, 41, of Hallandale Beach, Fla.; and Vladimir Okun, 44, of Davie) also are charged with transporting numerous firearms in 2009 from the United States to Yerevan, Armenia, without obtaining the appropriate license to do so.

 

Two indictments unsealed today in Miami allege health care fraud schemes running from 2007 to the present. The first health care fraud indictment charges three defendants (Andranik Itchmelyan, 48; Anahit Karapetyan, 40 of Davie; and Frank Rodriguez, 52, of North Miami Beach, Fla.) with conspiracy to commit health care fraud and substantive counts of health care fraud in connection with their ownership and operation of Hallandale Medical Associates Inc. The second health care fraud indictment charges another three defendants (Vladimir Okun; Andrey Schegolev, 49, of Hollywood, Fla; Harvey Lerfelt, 51 of North Miami Beach) with conspiracy to commit health care fraud and substantive counts of health care fraud in connection with their ownership and operation of Family Chiropractic Center Inc. Both of these clinics allegedly paid individuals to refer “patients” of staged accidents. The clinics billed private insurance carriers for treatments that were either not medically necessary or were not provided.

 

Finally, in an indictment unsealed today in U.S. District Court for the District of Colorado, Nadezda Nikitina, 24, of Denver, was charged with conspiring with others to make false statements to the United States on credit and loan applications. The indictment charges that Nikitina, acting under the control of a transnational criminal group, established a shell company and then used that shell company to apply for business and personal credit cards, car loans and leases, consumer loans and a home equity loan. In those credit applications, Nikitina allegedly claimed that she was the owner or an employee of the company. The indictment charges that Nikitina and her co-conspirators would conduct little activity on the credit card accounts and then go on a spending splurge, or “bust out” the lines of credit up to and over the credit limits on her various accounts. The indictment also charges Nikitina with 10 counts of false statements on credit and loan applications, bank fraud and wire fraud.

 

An indictment is merely an accusation and defendants are presumed innocent until proven guilty in a court of law. Copies of court documents can be found at www.justice.gov/opa/ioc.htm.

 

The two-year investigation of Armenian Power in Los Angeles – known as Operation Power Outage – was conducted by the Eurasian Organized Crime Task Force, which is made up of investigators from federal and local law enforcement agencies, including the FBI, the U.S. Secret Service, U.S. Immigration and Customs Enforcement (ICE), the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services (HHS), Internal Revenue Service (IRS) – Criminal Investigation, the Los Angeles County Sheriff’s Department, the Los Angeles Police Department, the Glendale Police Department and the Burbank Police Department. The mission of the Task Force is to investigate and disrupt or dismantle Eurasian organized crime groups operating within the Los Angeles area, and elsewhere.

 

The Eurasian Organized Crime Task Force Task Force worked with several other law enforcement agencies that provided substantial assistance during this morning’s takedown, including the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Los Angeles County District Attorney’s Office, Bureau of Investigation; the U.S. Marshals Service; and investigators with the California Department of Motor Vehicles.

 

The Miami cases were investigated by the FBI, IRS, ICE, Customs and Border Patrol and the Sunny Isles Beach Police Department. Valuable assistance was also provided by the International Organized Crime Intelligence and Operations Center (IOC-2); Miami-Dade Police Department; North Miami Beach Police Department; Hallandale Beach Police Department; U.S. Secret Service; HHS – Office of the Inspector General, Florida Department of Financial Services, Division of Insurance Fraud; the National Insurance Crime Bureau and the Serious Organised Crime Agency of the United Kingdom.

 

These cases are being prosecuted separately and independently of each other. The Los Angeles cases are being prosecuted by Assistant U.S. Attorneys E. Martin Estrada, Sarah Levitt, Stephen G. Wolfe and Joseph McNally, as well as Trial Attorney Cristina Moreno of the Criminal Division’s Organized Crime and Racketeering Section (OCRS). The Miami cases are being prosecuted by Assistant U.S. Attorneys Joseph Huynh and Cynthia Stone, as well as OCRS Trial Attorney Margaret Honrath and Trial Attorney Constantine Lizas of the Criminal Division’s Asset Forfeiture and Money Laundering Section. The Denver case is being prosecuted by OCRS Trial Attorneys Robert S. Tully and Joe Wheatley.

WASHINGTON – The United States and Croatia today signed an Agreement on Preventing and Combating Serious Crime. The agreement was signed on behalf of the United States by Attorney General Eric Holder and Secretary of Homeland Security Janet Napolitano. On behalf of Croatia, the agreement was signed by Interior Minister Tomislav Karamarko.

 

The U.S. Department of Justice, the U.S. Department of Homeland Security and the Republic of Croatia Ministry of Interior released the following statement:

 

“This agreement reflects, and further advances, the close collaboration between U.S. and Croatian law enforcement and border security personnel in fighting terrorism and transnational crime. It also provides an opportunity for overall security cooperation between the United States and Croatia as well as avenues in which to explore the possible further strengthening of such cooperation.

 

“The Agreement on Preventing and Combating Serious Crime provides 21st century tools to fight terrorism and transnational crime, while protecting individual privacy.  It reinforces our shared commitment to international cooperation and will help prevent known criminals and terrorists from causing harm to our citizens. It allows for fingerprint matching “hit/no hit” queries between our two nations, pursuant to which law enforcement officials in either country may submit the fingerprint information of a suspected criminal or terrorist to the other country for an immediate determination whether the queried country holds matching fingerprint records, while incorporating important privacy protections.  If this initial inquiry results in a match, only then may follow-up inquiries be made through law enforcement or mutual legal assistance channels.  

 

This agreement – which is modeled on the EU’s “Prüm” Agreement – provides for the sharing of important law enforcement information regarding criminal and terrorists, while ensuring that the privacy of citizens is protected.”

WASHINGTON - La Secretaria de Seguridad Nacional Janet Napolitano y el Secretario de Justicia de los Estados Unidos Eric Holder se reunieron hoy para discutir los disparos contra dos agentes especiales del Servicio de Inmigración y Control de Aduanas de EE.UU. [U.S. Immigration and Customs Enforcement (ICE)] en cumplimiento del deber, realizados por dos atacantes desconocidos mientras conducían un vehículo en México.

Durante la reunión, la Secretaria Napolitano y el Secretario de Justicia de los Estados Unidos Holder decidieron establecer una fuerza de tarea conjunta entre el Departamento de Seguridad Nacional y el Departamento de Justicia, a ser encabezada por el Buró Federal de Investigaciones. Dicha fuerza de tarea aprovechará las capacidades de investigación de ambas dependencias para trabajar en México en encontrar a los autores del delito y llevarlos ante la justicia.

"Esta fuerza de tarea conjunta es un reflejo de nuestro compromiso de utilizar todo el poder de investigación y enjuiciamiento del Gobierno de EE.UU. al trabajar con el gobierno mexicano para lograr el enjuiciamiento de estos delincuentes", dijo la Secretaria Napolitano. "Nuestros pensamientos y oraciones están con las familias y los seres queridos de los agentes del ICE, al ser recordados de los riesgos y sacrificios asumidos cada día por los hombres y mujeres en las las líneas de frente, para proteger la seguridad del pueblo estadounidense".

"El homicidio del Agente Especial Jaime Zapata y los disparos efectuados contra otro agente del ICE son un triste recordatorio de los peligros que los agentes de las fuerzas armadas de los Estados Unidos enfrentan todos los días", dijo el Secretario de Justicia de los Estados Unidos Eric Holder. "Trabajando con nuestros homólogos mexicanos, ya hemos lanzado una investigación agresiva, y esta fuerza de tarea conjunta asegurará que todo recurso disponible se utilice para enjuiciar a los autores de este terrible delito. ”

Durante su reunión, la Secretaria Napolitano y el Secretario de Justicia de los Estados Unidos Holder destacaron el compromiso de los Estados Unidos de trabajar estrechamente con las fuerzas del orden público mexicanas en pleno apoyo a la labor en curso. También reiteraron su compromiso de un mayor apoyo del gobierno estadounidense a la labor de México de combate a la violencia dentro de sus fronteras.

Hoy, la Secretaria Napolitano también habló con el Ministro del Interior de México Fernando Blake Mora. Durante la llamada, la Secretaria Napolitano enfatizó al Ministro Blake Mora que la violencia contra personal del Departamento de Seguridad Nacional [Department of Homeland Security (DHD)] en México representa un ataque contra todos aquellos que sirven a nuestra nación y ponen en riesgo sus vidas para nuestra seguridad, y no será tolerada por ninguno de los dos países.

En el ataque de ayer, un agente de las fuerzas del orden público estadounidenses, el Agente Especial del ICE Jaime J. Zapata, recibió heridas críticas que causaron su fallecimiento. El segundo agente recibió disparos en la pierna y ha recibido el alta hospitalaria. Se divulgará más información al respecto a medida que esté disponible.

WASHINGTON - Dos personas se declararon culpables hoy de conspiración para cometer fraude postal y telegráfico por sus papeles en ardides de oportunidades comerciales fraudulentas, anunciaron hoy el Departamento de Justicia y el Servicio de Inspección Postal de EE.UU.

Silvio Carrano y Gregory Britt Fleming fueron arrestados después de su acusación formal emitida por un gran jurado federal en Miami el 9 de marzo de 2010, con base en cargos de que ellos y sus coconspiradores vendieron oportunidades de máquinas expendedoras, bebidas y tarjetas de felicitaciones, incluidas promesas fraudulentas de asistencia en el establecimiento, mantenimiento y operación de dichas empresas. Los cargos son parte de la campaña nacional continua del gobierno contra el fraude de oportunidades comerciales.

"El fraude de oportunidades comerciales impone dificultades financieras significativas a víctimas inocentes y trabajadoras", dijo Tony West, Secretario de Justicia Auxiliar de la División de los Civil del Departamento de Justicia. "El Departamento de Justicia seguirá enjuiciando enérgicamente a quienes defrauden a los ciudadanos estadounidenses con la finalidad de ganar dinero rápido".

"Los estafadores de oportunidades comerciales necesitan darse cuenta de que este tipo de fraude será enérgicamente enjuiciado. Esto es así aunque operen desde afuera de los Estados Unidos", dijo Wifredo A. Ferrer, Fiscal Federal para el Distrito Sur de Florida. "La cooperación internacional de las fuerzas del orden público elimina los refugios para quienes estafen a ciudadanos estadounidenses desde el exterior".

Otros dos individuos involucrados en este ardid han sido arrestados y se han declarado culpables. El 29 de junio de 2010, Donald Williams se declaró culpable de conspiración para cometer fraude postal y telegráfico. El 27 de Octubre de 2010, fue sentenciado a 78 meses en prisión. El 18 de enero de 2011, Patrick Williams se declaró culpable de conspiración para cometer fraude postal y telegráfico, 10 cargos de fraude postal y tres cargos de fraude telegráfico. La lectura de la sentencia de Patrick Williams está programada para el 30 de marzo de 2011.

De acuerdo con el expediente judicial, a partir de junio de 2004, Carrano, Patrick Williams, Donald Williams, Fleming y sus coconspiradores convencieron fraudulentamente a compradores en los Estados Unidos que compraran oportunidades comerciales en Apex Management Group Inc. , USA Beverages Inc., Twin Peaks Gourmet Coffee Inc., Cards-R-Us Inc., Premier Cards Inc., The Coffee Man Inc. y Nation West Distribution Company. Los demandados vendieron oportunidades comerciales por miles de dólares cada una, y la mayoría de los compradores pagó por lo menos 10,000 dólares. Cada compañía operó durante varios meses, y después de que se cerraba una, se abría otra. Las diversas compañías utilizaron cuentas bancarias, oficinas y otros servicios en el Distrito Sur de Florida y otros lugares.

Los demandados, utilizando nombres ficticios, participaron en una conspiración que utilizó diversos medios para que los potenciales compradores pensaran que las empresas estaban plenamente ubicadas en los Estados Unidos. En realidad, Carrano, Patrick Williams, Donald Williams y Fleming operaban desde Costa Rica para convencer fraudulentamente a potenciales compradores en los Estados Unidos a comprar las supuestas oportunidades comerciales, de acuerdo con el expediente judicial.

Carrano y Fleming admitieron que las empresas realizaron numerosas declaraciones falsas a potenciales compradores de las oportunidades comerciales. Se les dijo falsamente a los compradores potenciales que probablemente recibirían lucros significativos; que compradores anteriores de las oportunidades comerciales recibían lucros significativos; y que la oportunidad comercial trabajaba con localizadores familiarizados con el área del comprador potencial, quienes obtendrían o ya habían obtenido ubicaciones de alto tráfico para los puestos comerciales del comprador potencial.

De acuerdo con el expediente judicial, las empresas emplearon diversos tipos de representantes de ventas, incluidos "personal de frente", "personal de cierre" y referencias. El personal de cierre hablaba con los potenciales compradores cuando inicialmente entraban en contacto con la compañía en respuesta a un aviso publicitario. A seguir, el personal de cierre hablaba con potenciales compradores para cerrar los negocios. Las referencias hablaban con potenciales compradores acerca de su supuesto éxito financiero desde que habían comprado una de las oportunidades comerciales.

Carrano admitió que, usando aliases, trabajó como empleado de frente y referencias para USA Beverages; empleado de frente y referencias para Twin Peaks; empleado de frente y referencias para Cards-R-Us; referencia para Premier Cards; y referencia para The Coffee Man. También figuraba en un documento societario como tesorero de USA Beverages. Fleming admitió que trabajó para USA Beverages y Nation West.

Cada una de las compañías estaba registrada como una sociedad y alquilaba oficinas para que los potenciales compradores pensaran que sus operaciones estaban plenamente ubicadas en los Estados Unidos. Apex estaba registrada como una empresa de Florida y alquilaba oficinas en Ft. Lauderdale, Fla., mientras que USA Beverages estaba registrada como una empresa de Florida y Nuevo México y alquilaba oficinas en Las Cruces, N.M. Peaks estaba registrada como una empresa de Florida y Colorado y alquilaba oficinas en Fort Collins, Colo. Cards-R-Us estaba registrada como una empresa de Nevada y alquilaba oficinas en Reno, Nev. Premier Cards estaba registrada como una empresa de Colorado y Pensilvania y alquilaba oficinas en Filadelfia. The Coffee Man y Nation West estaban ambas registradas como empresas de Colorado y alquilaban oficinas en Denver. Estas ubicaciones hicieron con que los potenciales compradores pensaran que las empresas estaban totalmente ubicadas en los Estados Unidos, cuando de hecho no lo estaban.

"El fraude de telemarketing no se limita a operaciones en los Estados Unidos. Esta investigación internacional y nacional ilustra la determinación del Servicio de Inspección Postal de proteger al público estadounidense contra los ardides de oportunidades comerciales", indicó Henry Gutierrez, Inspector Postal de EE.UU. a Cargo en Miami.

La lectura de la sentencia ha sido programada para el 20 de abril de 2011.

El Secretario de Justicia Auxiliar West y el Fiscal Federal Ferrer felicitaron al Servicio de Inspección Postal por su labor de investigación, y agradecieron a la Comisión Federal de Comercio quien había entablado una demanda relacionada anteriormente y realizado una remisión penal. Están a cargo de la acusación en el caso los abogados litigantes Jeffrey Steger y Alan Phelps de la Oficina de Litigio de Protección al Consumidor de la División de lo Civil.

WASHINGTON – Fred Woolum of Lexington, Va., was sentenced today in the Western District of Pennsylvania to 15 years in prison and a lifetime of supervised release for engaging in a child exploitation enterprise, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney for the Western District of Pennsylvania David J. Hickton and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge John Kelleghan.

 

Woolum, 59, pleaded guilty to one count of engaging in a child exploitation enterprise before U.S. District Court Judge Arthur J. Schwab on July 22, 2010. According to court documents and proceedings, Woolum and others distributed images and videos of children being sexually abused to other members of an international group that had restricted membership and was formed on a social networking website. Members of the group distributed to one another thousands of sexually explicit images and videos of children, many of which graphically depicted prepubescent, male children, including some infants, being sexually abused and sometimes sodomized or subjected to bondage.

 

This case was investigated by HSI in Pittsburgh and the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Assistant U.S. Attorney Craig W. Haller of the Western District of Pennsylvania and CEOS Trial Attorney Andrew McCormack prosecuted the case.

 

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

WASHINGTON – Twenty individuals, including three doctors, were charged today in the Southern District of Florida for various health care fraud, kickback and money laundering charges related to their alleged participation in a fraud scheme involving approximately $200 million in Medicare billing for purported mental health services, announced the Departments of Justice and Health and Human Services (HHS). 

The 38-count indictment unsealed today in U.S. District Court in the Southern District of Florida alleges that the defendants worked with and for American Therapeutic Corporation (ATC) and Medlink Professional Management Group Inc.  According to court documents, the defendants participated in a scheme to defraud Medicare by submitting false claims for mental health services administered at ATC facilities that were medically unnecessary or not provided at all.  The indictment alleges that various defendants paid kickbacks to patient brokers and owners and operators of halfway houses and assisted living facilities (ALFs), in exchange for delivering patients to ATC facilities.  Various defendants are charged with participating in an extensive and complicated money laundering scheme related to the cash for kickback payments.  Sixteen defendants were arrested this morning in the Southern District of Florida and are expected to appear in U.S. District Court in Miami later today. Arrests are expected to continue in the coming days.

ATC’s and Medlink’s owners and managers, Lawrence S. Duran, Marianella Valera, Judith Negron and Margarita Acevedo, were originally indicted along with the corporate entities, ATC and Medlink, in October 2010.  A superseding 38-count indictment unsealed today in the Southern District of Florida charges them with additional offenses.

“As today’s charges reflect, defrauding the Medicare system was not an aberration at ATC, but instead part and parcel of its business operations,” said Assistant Attorney General Lanny A. Breuer of the Criminal Division.  “The alleged scheme was brazen in scope, and carried out by the company’s owners, doctors, marketers and others.  By exploiting positions of trust, these defendants masked their fraudulent operation as a legitimate mental health business.  These charges are evidence that we will pursue Medicare cheats no matter their position.”

“Community mental health centers are an essential element of the nation’s health care system and serve vulnerable populations,” said Daniel R. Levinson, HHS Inspector General.  “Today’s arrests by OIG agents and our law enforcement partners show that we will not tolerate criminals who pay kickbacks for referrals of Medicare business or who bill for services that were either medically unnecessary or never provided.”

“Community Mental Health Centers can no longer use phantom medical care as a front to bilk Medicare for unnecessary or nonexistent medical services,” said FBI Special Agent in Charge John V. Gillies of the Miami Field Office. “The FBI and our law enforcement partners will investigate and criminally prosecute such fraud to the fullest extent of the law.”

U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida stated, “Health care fraud has evolved from DME fraud, to infusion fraud, to home health care fraud, and now, as this case shows, to community mental health treatment fraud. Worse yet, health care fraud has come to permeate every level of the health care industry, from the owners and managers of dirty clinics, to complicit doctors, program directors, therapists, marketers, and patient recruiters.  Today’s prosecution confirms that we are well-equipped and primed to fight the changing face of Medicare fraud in the Southern District of Florida, and that we will prosecute every link in the fraud chain.” 

According to court documents, ATC, headquartered in Miami, operated purported partial hospitalization programs (PHPs) in seven different locations throughout Florida, from Homestead to Orlando.  A PHP is a form of intensive treatment for mental illness.  Court documents allege that Duran and Valera orchestrated the fraud, kickback and money laundering schemes.  Negron assisted Duran and Valera in operating the schemes.  Acevedo operated the kickback scheme.   

According to court documents, doctors Mark Willner, Alan Gumer and Alberta Ayala were medical directors for ATC, and Vanja Abreu (Ph.D.), Nancy Merced-Sola and Lydia Ward (Ph.D.) served as program directors who managed ATC facilities.  Nichole Eckert was a therapist at ATC.  Court documents allege that Duran, Negron and Valera, along with the program directors and Eckert, regularly altered and instructed others to alter patient charts and notes from therapy sessions at ATC in order to make it appear that the patients being treated qualified for PHP treatments, when, in fact, they did not.  According to the indictment, Willner, Gumer and Ayala then signed the false patient charts authorizing unnecessary treatment or continued treatment for patients who were not eligible for PHP treatment, without examining the patients or the charts.  Duran and Valera also allegedly instructed employees and doctors at ATC, including Willner, Gumer and Ayala, to alter diagnoses and medication types and levels to falsely make it appear that the patients qualified for PHP treatments.

According to court documents, Valera, Willner, Gumer and Ayala manipulated the length of patients’ stays in order to maximize the number of days Medicare would pay for the PHP services.  According to a civil complaint filed in the Southern District of Florida, ATC routinely admitted patients to the PHP program who suffered from Alzheimer’s and severe dementia and therefore were not eligible for the PHP program because their mental capacity did not allow them to benefit from group therapy.

The indictment also alleges that Sandra Jimenez, Hilario Morris and Joseph Valdes were marketers for ATC and participated in the kickback operation.  These marketers, along with Duran, Valera, Negron and Acevedo, allegedly paid kickbacks to patient brokers and owners and operators of ALFs and halfway houses in exchange for delivering patients from their facilities to ATC.  The indictment alleges that defendants Mathis Moore, Nelson Fernandez, Leyanes Placeres, James Edwards, Frank Criado and Curtis Gates were patient brokers and, in exchange for kickbacks, provided patients to ATC every month from ALFs and halfway houses with which they had relationships.  The indictment alleges that the kickback payments totaled millions of dollars.

The indictments allege that the kickback scheme was supported by a money laundering scheme whereby individuals received checks in their own names or in the names of shell corporations they created, cashed the checks and returned the cash to Duran and Valera, which Duran and Valera then used to pay the kickbacks.  Defendants Adriana Mejia, Pedro Sosa, Yoisel Cancio and an unnamed coconspirator, along with Moore, Fernandez, Placeres, Edwards, Criado and Gates, allegedly participated with Duran, Valera, Negron and Acevedo in the charged money laundering conspiracy.  According to the indictment, Mejia, Sosa and Cancio received monthly, bi-weekly and weekly payments from Medlink despite the fact that they had no job functions at Medlink or ATC, other than laundering money.  The indictments also charge that Duran, Valera, Negron, Mejia, Sosa and Cancio engaged in transactions designed to conceal proceeds of unlawful activity and structured their transactions to avoid reporting requirements that require banks to report certain transactions.  According to the indictments, these defendants together laundered millions of dollars over several years.

The alleged scheme also involved a company called American Sleep Institute (ASI), which purportedly provided sleep study services.  The defendants paid additional kickbacks for some patients to also visit ASI.  Court documents allege that Willner, Gumer and Ayala furthered the health care fraud conspiracy by referring patients to ASI. 

In a separate action in October 2010, a civil complaint for injunctive relief was filed in U.S. District Court in the Southern District of Florida and a preliminary injunction was obtained to freeze the assets of Duran, Valera, Negron, Acevedo, ATC and Medlink as well as ASI and D&V Development Inc., as participants in the health care fraud.  Civil court documents allege that D&V Development was owned and operated by Valera and Duran and was established in an effort to divert funds received by ATC and ASI.

An indictment is merely a charge and defendants are presumed innocent until proven guilty.

Today’s actions were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida; Special Agent in Charge John V. Gillies of the FBI’s Miami Field Office; and Daniel R. Levinson, Inspector General of HHS.

The criminal cases are being prosecuted by Trial Attorneys Jennifer L. Saulino, Maria Gonzalez Calvet and Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.  The related civil action is being prosecuted by Vanessa I. Reed and Carolyn B. Tapie of the Civil Division and Assistant U.S. Attorney Ted L. Radway of the Southern District of Florida. The cases are being investigated by the FBI and HHS Office of Inspector General (OIG). The cases were brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.

Since their inception in March 2007, Strike Force operations in seven districts have obtained indictments of more than 850 individuals who collectively have falsely billed the Medicare program for approximately $2.1 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov

WASHINGTON – A leader of the Almighty Latin King and Queen Nation (Latin Kings) in Maryland was sentenced yesterday by U.S. District Judge Alexander Williams Jr. to 60 years in prison for conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member and leader of the Latin Kings.

Erick Roman, aka “Erick Javier Sierra,” “Malian-T” and “King Malian-T,” 34, of Laurel, Md., was also ordered to serve five years of supervised release following his prison term.

The sentence was announced by Assistant Attorney General Lanny A Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Theresa R. Stoop of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; Interim Chief Mark Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela Alsobrooks.

 

“As the founder and leader of a Latin Kings tribe in Maryland, Mr. Roman orchestrated a series of violent crimes, including a murder, firebombings and robberies,” said Assistant Attorney General Breuer. “As this case shows, the Justice Department is committed to working with state and local law enforcement to target the leadership of local gangs and make our communities safer.”

 

“The strategy of combining the resources and intelligence of local, state and federal law enforcement agencies to pursue federal racketeering charges against criminal gangs is proving effective in removing violent offenders from the streets and making our neighborhoods more safe,” said U.S. Attorney Rosenstein.

 

“ATF did not relent in our pursuit to eradicate the founding leadership of the Maryland Latin Kings,” said ATF Special Agent in Charge Stoop. “Our solid investigation brought down the man who was directing these malignant acts of violence.”

 

According to court documents and statements made at yesterday’s hearing, the Latin Kings is a violent street gang with thousands of members across the country and overseas.  The Latin Kings have a detailed and uniform organizational structure, which is outlined – along with various “prayers,” codes of behavior and rituals – in a written “manifesto” widely distributed to members throughout the country.  Members of the Latin Kings are also traditionally given “King Names” or “Queen Names,” which are names other than their legal names, by which they are known to members of the gang and to others.  At the local level, groups of Latin Kings are organized into “tribes,” including the Royal Lion Tribe, MOG, Sun Tribe and UTL.

Prosecutors advised the court that Roman brought the Latin Kings to Maryland and founded the Royal Lion Tribe.  He served as the Inca of the tribe and, in that capacity, sanctioned or ordered numerous violent acts, including a home invasion robbery of a drug dealer at the Marylander Condominiums in Langley Park, Md.; the robbery of a prostitute at a motel in Laurel; the firebombing of an apartment on July 24, 2007; the firebombing of a house on Jan. 8, 2008; and the murder of John Realpe-Montoya on April 25, 2008.

Eight co-defendants have previously pleaded guilty to the racketeering conspiracy.

The ATF-led Regional Anti-Gang Enforcement (RAGE) Task Force, which includes the Gaithersburg, Md., Police Department; the Montgomery County Department of Police; the Montgomery County State’s Attorney’s Office; the Prince George’s County Police Department; the Prince George’s County State’s Attorney’s Office; the Montgomery County Sheriff’s Office; the Maryland National Capital Park Police - Prince George’s County Division; and the Maryland State Police; as well as the New York City Police Department, the U.S. Secret Service and the Internal Revenue Service - Criminal Investigation provided assistance in the investigation and prosecution.

       

The case was prosecuted by Assistant U.S. Attorneys Emily Glatfelter and David Salem, and Trial Attorney Lara M. Peirce with the Criminal Division’s Gang Unit.

WASHINGTON - An agreement has been reached with the town of Swansea, Mass., to improve access to all aspects of civic life for persons with disabilities, the Justice Department today announced. The agreement was reached under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).

 

“Individuals with disabilities must have the opportunity to participate in local government programs, services and activities on an equal basis with their neighbors,” said Thomas E. Perez, Assistant Attorney General of the Civil Rights Division. “I commend Swansea’s officials for their big commitment to make this small town’s programs and facilities accessible to residents and visitors with disabilities. We hope that other cities and counties throughout the country will follow Swansea’s example by working with us to make their communities fully accessible.”

 

PCA was initiated to ensure that persons with disabilities have an equal opportunity to participate in civic life, a fundamental part of American society. As part of the PCA initiative, Justice Department investigators, attorneys and architects survey state and local government facilities, services and programs in communities across the country to identify the modifications needed for compliance with the ADA. The agreements are tailored to address the steps each community must take to improve access. This agreement is the 187th reached under the PCA initiative.

 

Under the agreement announced today, Swansea will take several important steps to improve access for individuals with disabilities, such as:

• Making physical modifications to facilities surveyed by the department so that parking, routes into buildings, entrances, service areas and counters, restrooms, public telephones and drinking fountains are accessible to people with disabilities;
• Surveying other facilities and programs and making modifications wherever necessary to achieve full compliance with ADA requirements;
• Posting, publishing and distributing a notice to inform members of the public of the provisions of Title II of the ADA and their applicability to the town’s programs, services and activities;
• Training town staff in using the Massachusetts Relay Service as a key means of communicating with individuals who are deaf, are hard-of-hearing or have speech impairments;
• Undertaking the required planning and modifications to ensure equal, integrated access to emergency management for individuals with disabilities, including emergency preparedness, notification, evacuation, sheltering, response, clean up and recovery;
• Ensuring that the town’s official website and other web-based services are accessible to people with disabilities;
• Developing a method for providing information for interested persons with disabilities concerning the existence and location of the town’s accessible services, activities and programs;
• Installing signs at any inaccessible entrance to a facility directing individuals with disabilities to an accessible entrance or to information about accessing programs and services at other accessible facilities; and
• Implementing a comprehensive plan to improve the accessibility of sidewalks, transportation stops and pedestrian crossings by installing accessible curb ramps throughout the town of Swansea.   

Swansea was established in 1663 as a colonial site. The historical town is located in Bristol County at the mouth of the Taunton River in southeastern Massachusetts, less than 50 miles from Boston. According to U.S. Census data, Swansea has just under 16,000 residents. Approximately 16 percent of Swansea residents have a disability and will benefit from this agreement.

 

Today’s agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. The agreement will remain in effect for three years from Feb. 15, 2011, or until all actions required by the agreement have been completed, whichever is later.  The department will actively monitor compliance with the agreement until all required actions have been completed.

 

People interested in finding out more about the ADA, today’s agreement with the town of Swansea, the Project Civic Access initiative or the ADA Best Practices Tool Kit for State and Local Governments can access the ADA Web page at www.ada.gov or call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).

 

More information regarding the agreement is available at www.ada.gov/swansea_pca/swansea_facsht.html . 

WASHINGTON – Seizure warrants have been executed against 10 domain names of websites engaged in the advertisement and distribution of child pornography, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and Secretary of Homeland Security Janet Napolitano. The seizures are part of a new joint Justice Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) initiative called Operation Protect Our Children.

 

Seizure warrants have been executed against 10 domain names of websites that hosted hundreds of photos depicting prepubescent children engaged in sexually explicit conduct. Individuals attempting to access the websites will now find a banner notifying them that the domain name of that website has been seized by federal authorities.

 

“For all its positive impact, the Internet has also unfortunately created a new way for child predators to commit their inexcusable crimes,” said Assistant Attorney General Breuer. “The production and distribution of child pornography wreak havoc on innocent lives. With these domain seizures, we are taking our fight against child pornography to websites that facilitate the exchange of these abusive images.”

 

“Each year, far too many children fall prey to sexual predators and all too often, these heinous acts are recorded in photos and on video and released on the Internet,” said Secretary of Homeland Security Janet Napolitano. “DHS is committed to working with our law enforcement partners to shut down websites that promote child pornography to protect these children from further victimization.”

 

Members of the public are encouraged to report suspected child predators and any suspicious activity through the ICE-HSI toll-free hotline at 1-866-DHS-2ICE. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or www.cybertipline.com . The International Criminal Police Organization (INTERPOL) and NCMEC have assisted ICE HSI in the efforts to identify websites dedicated to the advertisement and distribution of child pornography.

  

The seizure warrants were prepared by prosecutors from the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), with assistance from the Criminal Division’s Asset Forfeiture and Money Laundering Section. The U.S. Attorney’s Office for the District of Columbia also provided assistance. The warrants were executed by ICE-HSI agents.

WASHINGTON - The following is in response to the National Research Council (NRC) of the National Academy of Sciences (NAS) report, “Review of the Scientific Approaches Used During the FBI’s Investigation of the 2001 Anthrax Letters” (Report).

 

“The FBI appreciates the efforts, time and expertise of this group of highly respected professionals of the Academy. The Academy was asked by the FBI to conduct an independent review in appreciation of the significance of the anthrax investigation and the groundbreaking nature of the science involved and its role in resolving the case. We commend the committee formed by the Academy for a report that provides valuable guidance and better prepares the FBI to respond to attacks of a similar nature in the future.

 

“Among other findings, the committee confirmed the value of the emerging field of ‘microbial forensics,’ which proved significant in solving this case. This scientific technique established a critical lead as to the origins of the anthrax used in the attacks, allowing investigators to focus investigative resources and efforts. Ultimately, the late Dr. Bruce Ivins was determined to be the perpetrator of the deadly mailings. The FBI and Department of Justice were preparing for prosecution at the time of Dr. Ivin’s death.

 

“As the Report recognizes, this was an investigation of almost unprecedented scope, complexity, and duration. Its origins were in the immediate aftermath of the 9/11 attacks when the FBI was unsure of possible links to those attacks and concerned about follow-on attacks. The investigation necessarily moved at a rapid pace, proceeding on two parallel fronts: a traditional investigation, involving tracking leads and conducting interviews, and a scientific one, led by the FBI Lab and included scientists from outside of law enforcement. From the outset, the scientific and traditional investigations were mutually reinforcing. Each helped guide and direct the other. The report notes the complexity of the parallel tracks of the investigation and how aspects of each track informed decisions to proceed with or abandon particular lines of the investigation.

 

“As the report notes, one of the most significant scientific approaches undertaken in the case – the field of microbial forensics – was being developed as the investigation unfolded. While the biological and chemical analytical methods applied in the investigation were neither new nor unique, the application was both innovative and groundbreaking. The committee’s findings highlight the emerging role that microbial forensics played in this investigation and its promise for future investigations. The Report also recognized the FBI’s unprecedented efforts to form outside partnerships within the scientific community and the value that their expertise can lend to a criminal investigation of this magnitude.

 

“The committee’s Report reiterates what is and is not possible to establish through science alone in a criminal investigation of this magnitude. The committee’s focus was on the more novel scientific approaches used in this investigation and did not review the traditional forensic methods and techniques employed or the significant body of evidence gathered through traditional law enforcement techniques. The committee also concluded that it is not possible to reach a definitive conclusion about the origins of the B. anthracis in the mailings based on the available scientific evidence alone. The FBI has long maintained that while science played a significant role, it was the totality of the investigative process that determined the outcome of the anthrax case. Although there have been great strides in forensic science over the years, rarely does science alone solve an investigation. The scientific findings in this case provided investigators with valuable investigative leads that led to the identification of the late Dr. Bruce Ivins as the perpetrator of the anthrax attacks.

 

“Over the course of the investigation, the FBI and the Postal Inspection Service devoted 600,000 investigator work hours to the case and assigned 17 Special Agents to a Task Force, along with 10 U.S. Postal Inspectors. The investigation spanned six continents; involved over 10,000 witness interviews, 80 searches, 26,000 e-mail reviews, and analyses of 4 million megabytes of computer memory; and resulted in the issuance of 5,750 grand jury subpoenas. Additionally, 29 government, university, and commercial laboratories assisted in conducting the scientific analyses that were an important aspect of the investigation.

 

“The FBI believes that today’s Report will increase the public’s understanding of the exhaustive effort that resolved one of the most extensive investigations in the history of the FBI.

 

“The FBI and Justice Department investigative summary of evidence developed in the ‘Amerithrax’ investigation and numerous attachments are accessible to the public and were posted last year to the Justice Department website at www.justice.gov/amerithrax under the Freedom of Information Act.  In addition, roughly 2,700 pages of FBI documents related to the Amerithrax case are accessible to the public and were posted last year to the FBI website at http://foia.fbi.gov/foiaindex/amerithrax.htm under the Freedom of Information Act.”

WASHINGTON – The construction manager for a renovation project at the Equitable Building in Des Moines, Iowa, pleaded guilty today in federal court to conspiracy to violate the Clean Air Act and for violating the Clean Air Act’s work practice standards related to asbestos removal, the Department of Justice announced.

Russell Coco, 51, of Des Moines, pleaded guilty before U.S. District Judge James E. Gritzner for the Southern District of Iowa to one count of conspiracy to violate the Clean Air Act and one count of failing to remove all regulated asbestos containing material from the Equitable Building before commencement of the renovation project.

The Clean Air Act requires contractors who remove asbestos from public buildings to follow federally established work practice standards to ensure the safe removal of the asbestos.  The required standards include providing notice to the U.S. Environmental Protection Agency (EPA) before commencing asbestos removal, adequately wetting the asbestos during the removal and before disposal and properly disposing of the asbestos at an EPA-approved disposal site.

According to a plea agreement filed with the court, from 2006 through February 2008, Coco acted as the construction manager for the renovation project which involved converting several floors of the building into luxury residential condominium units, and renovating other floors to attract additional commercial tenants.

According to the facts contained in the plea agreement, Coco was employed as the construction supervisor and reported directly to the building owner Bob Knapp. Coco admitted that he conspired with Knapp to remove asbestos containing materials from the building without complying with the requirements of the Clean Air Act. While Coco was the construction manager for the project, more than 260 feet of steam pipes with asbestos containing insulation and more than 160 square feet of floor tile containing asbestos were removed from the building and disposed of in an uncovered dumpster. None of the workers involved in removing and disposing of the asbestos containing materials were properly accredited to perform asbestos abatement work.

According to the plea agreement, Coco has agreed to face up to one year in prison and, under the law, is subject to a fine of up to $250,000. A sentencing date has been set for May 20, 2011.

An indictment is pending against Knapp, alleging conspiracy and multiple violations of the Clean Air Act, and his case is scheduled for trial on Feb. 28, 2011. The allegations in the indictment are mere accusations and all persons are presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.

The investigation was conducted by the EPA Criminal Investigation Division.  The case is being prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa together with the Department of Justice Environment and Natural Resources Division’s Environmental Crimes Section.

WASHINGTON - El Secretario de Justicia de los Estados Unidos Eric Holder anunció hoy que la propuesta de presupuesto del Presidente Obama para el año fiscal 2012 por un total de 28,200 millones de dólares para el Departamento de Justicia identifica 2,000 millones de dólares en eficiencias y ahorros y brinda recursos para fortalecer la seguridad nacional, preservar las misiones tradicionales del departamento, mantener prisiones y centros de detención y asistir a nuestros asociados estatales, locales y tribales de las fuerzas del orden público. La solicitud representa un incremento del 1.7 por ciento en la autoridad presupuestaria y una suba de 2,905 puestos sobre el nivel de Resolución Continua [Continuing Resolution (CR)] anualizado del año fiscal 2011.

“La solicitud presupuestaria del Presidente demuestra que está dedicado a proteger nuestra seguridad nacional y comprometido a usar todos los instrumentos de poder disponibles para luchar contra el terrorismo y proteger a los Estados Unidos. Este presupuesto respeta el rol histórico del departamento en la lucha contra la delincuencia, la protección de los derechos civiles, la preservación del medio ambiente y la garantía de justicia en el mercado, mientras responde a nuevos desafíos como el derrame de petróleo de Deepwater Horizon”, dijo el Secretario de Justicia de los Estados Unidos Holder. “Dado el clima económico actual, este presupuesto también identifica ahorros y eficiencias, mientras se asegura de que nuestros recursos se destinen a nuestras áreas de misión más cruciales”.

La solicitud de presupuesto de 28,200 millones de dólares financia operaciones y actividades base para todos los componentes del Departamento de Justicia [Departament of Justice (DOJ)] e incluye 1,400 millones de dólares en mejoras a programas y 2,000 millones de dólares en eficiencias administrativas, ahorros programáticos y rescisiones de balances. El presupuesto brinda fondos cruciales para los programas esenciales de seguridad nacional del departamento, así como también apoya la continuación de fuertes iniciativas contra el fraude financiero y en la atención médica. El presupuesto también mantiene funciones clave de las fuerzas del orden público, lo que incluye apoyo a iniciativas a lo largo de la frontera sudoeste. Además, el presupuesto se encarga de la población carcelaria federal y costos asociados a largo plazo a través de reformas en las sentencias y la expansión de programas de reinserción, mientras sigue fortaleciendo programas de justicia penal estatales, locales y tribales. Para eliminar redundancias y aprovechar recursos, el presupuesto optimiza programas y redirige fondos para mejorar las capacidades de los agentes de las fuerzas del orden público del Departamento de Justicia. El presupuesto propone ahorrar 301 millones de dólares adicionales optimizando operaciones y consolidando programas que se duplican. Debido a restricciones fiscales, también fueron necesarias renuncias importantes en subsidios locales y estatales, que se redujeron 588 millones de dólares respecto del nivel promulgado en 2010. Además, el presupuesto incluye 62 millones de dólares de ahorros logrados a través de eficiencias y consolidaciones en el departamento.

Las prioridades clave del Departamento de Justicia incluyen:

• un incremento de 128.6 millones de dólares para fortalecer la seguridad nacional;
• un incremento de 57.4 millones de dólares para preservar misiones tradicionales;
• un incremento de 461.4 millones de dólares para mantener prisiones y centros de detención;
• un incremento de 786.4 millones de dólares para asistir a fuerzas del orden público estatales, locales y tribales;
• 2,000 millones de dólares en eficiencias administrativas, ahorros programáticos y rescisiones de balances.

Fortalecer la seguridad nacional

Prevenir, desbaratar y hacer fracasar actos terroristas antes de que se produzcan sigue siendo la mayor prioridad del Departamento de Justicia. El presupuesto del año fiscal 2012 solicita un incremento de 128.6 millones de dólares, lo que incluye 170 nuevos puestos (71 agentes y 5 abogados), para fortalecer la seguridad nacional y contrarrestar la amenaza del terrorismo. Dado que las amenazas a la seguridad nacional están en un proceso constante de evolución y adaptación, se necesitan recursos adicionales para contrarrestar los nuevos desafíos a la seguridad nacional. Asimismo, un mayor acceso global a los avances tecnológicos también ha provocado nuevas vulnerabilidades que deben tratarse. Los incrementos a programas solicitados en el presupuesto del año fiscal 2012 ofrecen capital tecnológico y humano esencial para detectar, desbaratar y disuadir amenazas a nuestra seguridad nacional.

El gobierno apoya programas cruciales de seguridad nacional dentro del departamento, lo que incluye al Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)] y la División de Seguridad Nacional [National Security Division (NSD)]. Los recursos de seguridad nacional solicitados incluyen 122.5 millones de dólares en incrementos de programas del FBI. Esta cifra incluye 48.9 millones de dólares para que el FBI expanda la vigilancia relacionada con la seguridad nacional y mejore su Sistema de Integración y Visualización de Datos; 40 millones de dólares para el programa de Facilitadores Operativos del FBI y capacidades de Armas de Destrucción Masiva/Desactivación [Render Safe] para distribuir activos de desactivación por todo el país para desactivar, bloquear o destruir armas de destrucción masiva; y 18.6 millones de dólares para la Iniciativa de Intrusión Informática del FBI para incrementar la cobertura de detección de intrusiones cibernéticas.

Para abordar la creciente brecha tecnológica entre las capacidades de vigilancia electrónica de las fuerzas del orden público y la cantidad y diversidad de dispositivos de comunicación disponibles al público, se solicitan incrementos a programas de 17 millones de dólares para mejorar las capacidades de vigilancia electrónica del departamento.

Para obtener más información, visite la Hoja Informativa de Fortalecer la Seguridad Nacional en www.justice.gov/jmd/2012factsheets/

Preservar misiones tradicionales

Una de las misiones del Departamento de Justicia es hacer valer la ley y garantizar una administración justa e imparcial de la justicia para todos los estadounidenses. Cumplir esta misión requiere recursos para investigar y litigar de parte del pueblo estadounidense y el gobierno en su totalidad. El presupuesto del año fiscal 2012 solicita un incremento de 57,4 millones de dólares, que incluye 189 nuevos puestos (68 agentes y abogados), para expandir la capacidad de litigio y de proteger a las poblaciones vulnerables del departamento. Para promover la misión de defender a poblaciones vulnerables, se solicitan 1.5 millones de dólares para el Servicio de Relaciones Comunitarias para incrementar las actividades de prevención contra delitos por odio.

El presupuesto del año fiscal 2012 también apoya las iniciativas constantes contra el fraude financiero. Entre agosto y diciembre de 2010, la Fuerza de Tarea de Coacción contra el Fraude Financiero del Secretario de Justicia de los EE.UU. presentó acusaciones contra más de 500 demandados penales y civiles por ardides de fraude que han afectado a más de 120,000 víctimas en todo el país y representado más de 8,000 millones de dólares en pérdidas penales estimadas y más de 2,100 millones de dólares en pérdidas civiles estimadas. Además, el presupuesto para el año fiscal 2012 solicita incrementos de programas de 3 millones de dólares para la División de lo Penal para la coacción internacional de leyes de propiedad intelectual.

El departamento también mantiene responsabilidades sustanciales respecto de la inmigración, lo que incluye coacción, detención, funciones judiciales, audiencias administrativas y litigios. El presupuesto del año fiscal 2012 solicita 15 millones de dólares para la Oficina Ejecutiva de Revisión de Inmigración [Executive Office for Immigration Review (EOIR)] para responder al crecimiento de la carga de trabajo generado por el incremento de las actividades de coacción inmigratoria del Departamento de Seguridad Nacional y para expandir el Programa de Orientación Legal para mejorar las eficiencias en procedimientos de los tribunales de inmigración para extranjeros detenidos mejorando su conocimiento del proceso general.

Por último, el Título II de la Ley de Salud y Compensación del 11 de septiembre James Zadroga (P.L. 11-347) reabre el Fondo de Compensación a Víctimas del 11 de septiembre y extiende la elegibilidad para compensación asociada a lesiones físicas relacionadas con la remoción de escombros y extiende la fecha límite para reclamos asociados a afecciones no descubiertas antes de la fecha límite original del fondo. La ley pone a disponibilidad hasta 2,800 millones de dólares para la conciliación de nuevos reclamos.

Para obtener más información, visite la Hoja Informativa de Preservar Misiones Tradicionales en www.justice.gov/jmd/2012factsheets/

Mantener prisiones y centros de detención

El departamento siempre ha tenido como prioridad mantener instalaciones de detención seguras y controladas, y brindar los recursos necesarios para adaptarse a una creciente población carcelaria. La solicitud del presupuesto del año fiscal 2012 mantiene este compromiso, brindando 224 millones de dólares en ajustes a prisiones y centros de detención para mantener los servicios actuales y 461.4 millones en incrementos a programas para garantizar que los delincuentes estén confinados en instalaciones seguras y mejorar los índices de reincidencia y reinserción en la sociedad de los presos.

El presupuesto del año fiscal 2012 solicita un total de 8,400 millones de dólares para mantener las operaciones de prisiones y centros de detención. Esto financia más de 800 puestos nuevos de agentes correccionales y 1,200 puestos existentes vacantes de trabajadores correccionales en nuestras instalaciones, y suma más de 7,200 camas en las prisiones. De este monto, se solicitan 6,800 millones de dólares para el Buró de Prisiones [Bureau of Prisons (BOP)] y 1,600 millones de dólares para la Oficina del Síndico de Detención Federal. Los incrementos en los programas son esenciales para asegurar la detención segura de la creciente población carcelaria. Los incrementos del BOP incluyen 140.4 millones de dólares para comenzar la activación de tres prisiones, entre ellas la Institución Correccional Federal segura para mujeres en Aliceville, Ala., que reducirá los niveles de hacinamiento en instalaciones seguras para mujeres de más del 50 por ciento a un 13 por ciento. La solicitud presupuestaria también incluye 22.2 millones de dólares para Iniciativas de Segunda Oportunidad para mejorar la reinserción de los presos, específicamente programas de orientación vocacional, educación y tratamiento contra las drogas. Además, se solicitan 156.6 millones de dólares en incrementos para programas de detención federal para compensar incrementos en la población diaria de detenidos e incrementos inflacionarios de costos relacionados con la detención, como el transporte y la atención médica.

Para obtener más información, visite la Hoja Informativa de Mantener Prisiones y Centros de Detención en www.justice.gov/jmd/2012factsheets/

Asistir a fuerzas del orden público estatales, locales y tribales

El presupuesto del año fiscal 2012 solicita un total de 3,000 millones de dólares para asistencia a fuerzas del orden público estatales, locales y tribales, lo que representa un 11 por ciento de la autoridad presupuestaria total del departamento. Estos fondos permitirán que el departamento incremente el apoyo a agencias policiales estatales, locales y tribales que luchan contra los delitos violentos, combaten la violencia contra la mujer y apoyan a programas de víctimas.

El departamento solicita un total de 1,900 millones de dólares para la Oficina de Programas Judiciales.

Esta solicitud incluye 120 millones de dólares para un nuevo programa de incentivo mediante subsidios basados en el desempeño del Sistema de Justicia Juvenil; 30 millones de dólares para el Programa Byrne de Innovación en Justicia Penal; 30 millones de dólares para seguir implementando la Ley Adam Walsh de 2006 para proteger a los niños de la explotación; 25 millones de dólares para ayudar a niños expuestos a la violencia; y 10 millones para una iniciativa de prácticas policiales inteligentes.

El departamento solicita un total de 454.9 millones de dólares para la Oficina de Violencia contra la Mujer [Office on Violence Against Women (OVW)] para brindarles recursos a las comunidades para combatir la agresión sexual y la violencia contra la mujer. Esta solicitud incluye un total de 50 millones de dólares para el Programa de Asistencia Legal a Víctimas; 35 millones de dólares para el Programa de Servicios contra la Agresión Sexual; y 14 millones de dólares para un Programa Consolidado de Subsidios Orientado a la Juventud de la OVW para aprovechar recursos para lograr el mayor impacto posible en las comunidades financiando proyectos integrales que incluyan componentes tanto de servicios a la juventud como de prevención.

La solicitud del departamento incluye 302 millones de dólares adicionales para el programa de contratación de Servicios Policiales Comunitarios, lo que eleva el total de fondos del programa de contratación a 600 millones de dólares. Estos fondos, en forma de subsidios competitivos, permitirán que dependencias policiales estatales y locales incrementen el número de agentes disponibles por patrulla y otras estrategias comprobadas para prevenir y reducir la delincuencia.

Además, el presupuesto del año fiscal 2012 propone 250 millones de dólares en fondos obligatorios para que los estados reformen sus leyes sobre mala praxis médica.

Para obtener más información, visite la Hoja Informativa de Asistir a las Fuerzas del Orden Público Estatales, Locales y Tribales en www.justice.gov/jmd/2012factsheets/

Promover ahorros y eficiencias

El presupuesto del año fiscal 2012 financia misiones cruciales del DOJ de una manera responsable a nivel fiscal. Así, el presupuesto del año fiscal 2012 incluye 2,000 millones de dólares en rescisiones y compensaciones administrativas que reinvertiremos en nuestras misiones de mayor prioridad. Estas compensaciones incluyen artículos como consolidaciones espaciales y de fuerzas de tarea, ahorros en programas específicos a un componente, eficiencias de administración de proyectos de Tecnología de la Información, reducciones a programas de subsidios menos eficientes y rescisiones de balances del año anterior. Por ejemplo, el departamento propone eliminar los Equipos Móviles de Coacción de la Administración de Control de Drogas (con lo que se ahorran 39 millones de dólares), reducir y reenfocar el Centro Nacional de Información sobre Drogas (con lo que se ahorran 19 millones de dólares) y revisar la manera en que se calcula el Crédito por Buen Comportamiento para presos de cárceles federales (con lo que se ahorra 41 millones de dólares).

Para obtener más información, visite la Hoja Informativa de Ahorros y Eficiencias en www.justice.gov/jmd/2012factsheets/

WASHINGTON – Tan Nguyen, 35, from Oceanside, Calif., was sentenced this morning by U.S. District Judge David O. Carter to one year and one day in federal prison for his conviction last year on a federal obstruction of justice charge stemming from lies he told California investigators about his involvement in a letter sent to Latino voters during his 2006 campaign for U.S. House of Representatives. In addition to the prison term, Judge Carter ordered Nguyen to serve six months at a halfway house.

 

A federal jury in December 2010 found Nguyen guilty of obstruction of justice for lying to the California Department of Justice, which was investigating numerous complaints from Latino voters in the 47th Congressional District in Orange County. The complaints came after approximately 14,000 voters in the district received a letter in Spanish that made claims about who was eligible to vote and what would happen to immigrant voters if they cast ballots. The mailer went out on letterhead that was similar to that of an anti-illegal immigration group, the California Coalition for Immigration Reform, which had nothing to do with the letter.

 

During an interview with investigators in October 2006, Nguyen falsely stated that campaign volunteers created the letter without his knowledge.

 

“The Civil Rights Division is committed to protecting the voting rights of all individuals. We simply will not tolerate those who attempt to interfere with efforts to enforce civil rights laws in our nation,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.

 

“Mr. Nguyen’s conduct undermined the public’s expectation of honesty from public officials and those who desire to serve,” said U.S. Attorney for the Central District of California André Birotte Jr.

 

Judge Carter ordered Nguyen to surrender to begin serving his sentence by March 28, 2011.

 

The investigation was conducted by the FBI. This case was prosecuted by Civil Rights Division trial attorney D.W. Tunnage and Assistant U.S. Attorney Gregory Staples of the Central District of California.

WASHINGTON - Tan Nguyen, 35, de Oceanside, Calif. fue condenado esta mañana por el Juez Federal de Distrito David O. Carter a un año y un día en prisión federal por su condena el año pasado por una acusación de obstrucción federal de la justicia surgida de mentiras que les dijo a investigadores de California sobre su participación en una carta enviada a votantes latinos durante su campaña de 2006 para llegar a la Cámara de Representantes de los EE.UU. Además de la condena a prisión, el Juez Carter le ordenó a Nguyen que pasara seis meses en un centro de reinserción social.

En diciembre de 2010, un jurado federal dictaminó que Nguyen era culpable de obstruir la justicia por mentirle al Departamento de Justicia de California, que estaba investigando diversas denuncias de votantes latinos en el 47° Distrito Electoral en el Condado de Orange. Las denuncias se produjeron después de que alrededor de 14,000 votantes del distrito recibieran una carta en español que hacía afirmaciones sobre quién tenía derecho a votar y qué les pasaría a los votantes inmigrantes si votaban. La carta fue enviada con un papel membrete parecido al de un grupo contra la inmigración ilegal, la Coalición para la Reforma Inmigratoria de California [California Coalition for Immigration Reform], que no tuvo nada que ver con la carta.

En un interrogatorio con los investigadores en octubre de 2006, Nguyen declaró falsamente que voluntarios de la campaña habían creado la carta sin su conocimiento.

“La División de Derechos Civiles está comprometida a proteger los derechos electorales de todas las personas. No toleraremos de ninguna manera a quienes intentan interferir con iniciativas para hacer valer las leyes de derechos civiles de nuestro país”, dijo Thomas E. Perez, Secretario de Justicia Auxiliar de la División de Derechos Civiles.

“La conducta del Sr. Nguyen minó la expectativa del público de honestidad en funcionarios públicos y quienes desean servir al país”, dijo el Fiscal Federal del Distrito Central de California André Birotte Jr.

El Juez Carter le ordenó a Nguyen que se entregara para empezar a cumplir su sentencia el 28 de marzo de 2011.

La investigación fue llevada a cabo por el Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)]. Estuvieron a cargo de la investigación en el caso el abogado litigante de la División de Derechos Civiles D.W. Tunnage y el Fiscal Federal Auxiliar Gregory Staples del Distrito Central de California.

WASHINGTON – Attorney General Eric Holder announced today that President Obama’s Fiscal Year (FY) 2012 budget proposal totaling $28.2 billion for the Department of Justice identifies $2.0 billion in efficiencies and savings while providing resources to strengthen national security, preserve the department’s traditional missions, maintain prisons and detention, and assist our state, local and tribal law enforcement partners. The request represents a 1.7 percent increase in budget authority and an increase of 2,905 positions over the annualized FY 2011 Continuing Resolution (CR) level.

 

“The President’s budget request demonstrates a dedication to protecting our national security and a commitment to using every instrument of power to fight terrorism and keep America safe.  This budget upholds the department’s historic role in fighting crime, protecting civil rights, preserving the environment, and ensuring fairness in the marketplace, while responding to new challenges such as the Deepwater Horizon oil spill,” said Attorney General Holder. “Given the current economic climate, this budget also identifies savings and efficiencies, while assuring that our resources will be devoted to our most critical mission areas.”    

 

The $28.2 billion budget request funds base operations and activities for all DOJ components, and includes $1.4 billion in program enhancements and $2.0 billion in administrative efficiencies, programmatic savings, and rescissions from balances. The budget provides critical funding for the department’s essential national security programs, as well as supports continued robust efforts to crack down on financial and health care fraud. The budget also maintains core law enforcement functions, including support for efforts along the Southwest border. In addition, the budget addresses the federal prison population and associated long-term costs through sentencing reform and expanded re-entry programming, while continuing to strengthen state, local and tribal criminal justice programs. In order to eliminate redundancies and target resources, the budget streamlines programs and redirects funding to improve the capabilities of Department of Justice law enforcement agents. The budget proposes to save an additional $301.0 million by streamlining operations and consolidating duplicative programs. Due to fiscal constraints, important trade-offs were also necessary in local and state grants, which are reduced $588.0 million from the 2010 enacted level. In addition, the budget includes $62.0 million in savings achieved through efficiencies and consolidations in the department. 

 

The Department of Justice’s key priorities include:

 

·         $128.6 million increase to strengthen national security;

·         $57.4 million increase to preserve traditional missions;

·         $461.4 million increase to maintain prisons and detention;

·         $786.4 million increase to assist state, local and tribal law enforcement;

·         $2.0 billion in administrative efficiencies, programmatic savings and rescissions from balances.

Strengthen National Security

 

Preventing, disrupting, and defeating terrorist acts before they occur remains the Department of Justice’s highest priority. The FY 2012 budget requests a $128.6 million increase, including 170 new positions (71 agents and 5 attorneys), to strengthen national security and counter the threat of terrorism. With national security threats constantly evolving and adapting, additional resources are required to counteract new national security challenges. Likewise, increasing global access to technological advancements has also resulted in new vulnerabilities that must be addressed. The requested FY 2012 budget program increases provide essential technological and human capital to detect, disrupt and deter threats to our national security.

 

The administration supports critical national security programs within the department, including the FBI and the National Security Division (NSD). The requested national security resources include $122.5 million in program increases for the FBI. This figure includes $48.9 million for the FBI to expand national security related surveillance and enhance its Data Integration and Visualization System; $40.0 million for the FBI’s Operational Enablers program and Weapons of Mass Destruction/Render Safe capabilities to deploy render safe assets throughout the country to diffuse, disrupt or destroy weapons of mass destruction; and $18.6 million for the FBI’s Computer Intrusion Initiative to increase coverage in detecting cyber intrusions.

 

To address the growing technological gap between law enforcement’s electronic surveillance capabilities and the number and variety of communications devices available to the public, $17.0 million in program increases are being requested to bolster the department’s electronic surveillance capabilities.

 

For more information, view the Strengthen National Security Fact Sheet at www.justice.gov/jmd/2012factsheets/

 

Preserve Traditional Missions

 

It is the mission of the Department of Justice to enforce the law and ensure the fair and impartial administration of justice for all Americans. Accomplishing this mission requires resources to both investigate and litigate on behalf of the American people and the government as a whole. The FY 2012 budget requests a $57.4 million increase, including 189 new positions (68 agents and attorneys), to expand the department’s enforcement litigation capacity and ability to protect vulnerable populations. In order to further the mission of defending vulnerable populations, $1.5 million in program increases is requested for the Community Relations Service to increase prevention activities for hate crimes.

 

The FY 2012 budget also supports the continued efforts to crack down on financial fraud. From August through December 2010, the Attorney General’s Financial Fraud Enforcement Task Force brought charges against over 500 criminal and civil defendants for fraud schemes that have harmed more than 120,000 victims throughout the country, involving more than $8.0 billion in estimated criminal losses and more than $2.1 billion in estimated civil losses. In addition, the FY 2012 budget requests $3.0 million of program increases for the Criminal Division for transnational enforcement of intellectual property law.

 

The department also maintains substantial responsibilities with respect to immigration, including enforcement, detention, judicial functions, administrative hearings and litigation, among others. The FY 2012 budget requests $15.0 million for the Executive Office for Immigration Review (EOIR) to support increasing workload generated by increasing immigration enforcement activities at the Department of Homeland Security and to expand the Legal Orientation Program to improve efficiencies in immigration court proceedings for detained aliens by increasing their awareness of the overall process.

 

Finally, Title II of the James Zadroga 9/11 Health and Compensation Act of 2010 (P.L. 111-347), reopens the September 11th Victim Compensation Fund, extending eligibility for compensation associated with physical harm stemming from debris removal and extending the deadline for claims associated with harms not discovered before the fund’s original deadline. The act makes available up to $2.8 billion for settlement of new claims.

 

For more information, view the Preserve Traditional Missions Fact Sheet at www.justice.gov/jmd/2012factsheets/

 

Maintain Prisons and Detention

 

The department has always prioritized maintaining secure, controlled detention facilities, and providing the necessary resources to accommodate a growing inmate population. The FY 2012 budget request maintains this commitment, providing $224.0 million in prison and detention adjustments to maintain current services and $461.4 million for program increases to ensure offenders are confined in secure facilities and improve inmate reentry and recidivism rates.

 

The FY 2012 budget requests a total of $8.4 billion to maintain prison and detention operations. This funds over 800 new correctional officer and 1,200 existing vacant correctional worker positions in our facilities, and adds more than 7,200 prison beds. Of this amount, $6.8 billion is requested for the Bureau of Prisons (BOP), and $1.6 billion is requested for the Office of the Federal Detention Trustee. The program increases are essential for ensuring the secure detention of a growing inmate population. Increases for BOP include $140.4 million to begin activation of three prisons, including the secure female Federal Correctional Institution Aliceville, Ala., which will reduce crowding levels at secure female facilities from over 50 percent to 13 percent. The budget request also includes $22.2 million for Second Chance Initiatives to enhance inmate re-entry, specifically vocational training, education and drug treatment programs. Further, $156.6 million in program increases is requested for federal detention to offset increases in the average daily detainee population and inflationary increases for detention related costs such as transportation and medical care.

 

For more information, view the Maintain Prisons and Detention Fact Sheet at www.justice.gov/jmd/2012factsheets/

 

Assist State, Local and Tribal Law Enforcement

 

The FY 2012 budget requests $3.0 billion in total for state, local and tribal law enforcement assistance, which represents 11 percent of the department’s total budget authority. These funds will allow the department to increase support to state, local and tribal police agencies that fight violent crime, combat violence against women and support victim programs.

 

The department requests a total of $1.9 billion for the Office of Justice Programs.

This request includes $120.0 million for a new performance-based Race to the Top-style Juvenile Justice System Incentive Grant Program; $30.0 million for the Byrne Criminal Justice Innovation Program; $30.0 million to continue implementation of the Adam Walsh Act of 2006 to protect children from exploitation; $25.0 million to assist children exposed to violence; and $10 million for a smart policing initiative.

 

T he department requests a total of $454.9 million for the Office on Violence Against Women (OVW) in order to provide communities with resources to combat sexual assault and violence against women. This request includes a total of $50.0 million for the Legal Assistance for Victims Program; $35.0 million for the Sexual Assault Services Program; and $14.0 million for an OVW Consolidated Youth Oriented Grants Program that will enable OVW to leverage resources for maximum impact on communities by funding comprehensive projects that include both youth services and prevention components.

 

The department’s request includes an additional $302.0 million for the Community Oriented Policing Services hiring program, bringing total hiring program funding to $600.0 million. These funds, in the form of competitive grants, will enable state and local police agencies to increase the number of officers available for targeted patrol and other proven strategies designed to prevent and reduce crime.

 

In addition, the FY 2012 budget proposes $250.0 million in mandatory funds for states to reform their laws on medical malpractice.

 

For more information, view the Assist State, Local and Tribal Law Enforcement Fact Sheet at www.justice.gov/jmd/2012factsheets/

 

 

Promote Savings and Efficiencies

 

 

The FY 2012 budget funds DOJ’s critical missions in a fiscally responsible manner. As such, the FY 2012 budget includes $2.0 billion in rescissions and program and management offsets that we will reinvest in our highest priority missions. These offsets include items such as task force and space consolidations, component-specific program savings, Information Technology project management efficiencies, reductions to less effective grant programs, and rescissions of prior year balances. For example, the department is proposing to eliminate the Drug Enforcement Administration’s Mobile Enforcement Teams (saving $39 million), reduce and refocus the National Drug Intelligence Center (saving $19 million), and revise the way Good Time Credit is calculated for federal prison inmates (saving $41 million).

 

For more information, view the Savings and Efficiencies Fact Sheet at www.justice.gov/jmd/2012factsheets/ 

WASHINGTON – Ryan Chiles of Hampton, Va., was sentenced today in the Western District of Pennsylvania to 102 months in prison and a lifetime of supervised release for engaging in a child exploitation enterprise, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney for the Western District of Pennsylvania David J. Hickton and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge John Kelleghan.

 

Chiles, 22, pleaded guilty before U.S. District Court Judge Arthur J. Schwab on July 14, 2010, to one count of engaging in a child exploitation enterprise. According to court documents and proceedings, Chiles and others distributed images and videos of children being sexually abused to other members of an international group that had restricted membership and was formed on a social networking website.  Members of the group distributed to one another thousands of sexually explicit images and videos of children, many of which graphically depicted prepubescent, male children, including some infants, being sexually abused and sometimes sodomized or subjected to bondage.   

 

This case was investigated by HSI in Pittsburgh and the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Assistant U.S. Attorney Craig W. Haller of the Western District of Pennsylvania and CEOS Trial Attorney Andrew McCormack prosecuted the case.

 

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

WASHINGTON - Ryan Chiles de Hampton, Va., fue sentenciado hoy en el Distrito Oeste de Pensilvania a 102 meses de prisión y libertad bajo supervisión de por vida por participar en una empresa de explotación infantil, anunciaron el Secretario de Justicia Auxiliar Lanny A. Breuer de la División de lo Penal, el Fiscal Federal para el Distrito Oeste de Pensilvania David J. Hickton y el Agente Especial a Cargo de la Oficina de Investigaciones de Seguridad Nacional [Homeland Security Investigations (HSI)] del Servicio de Inmigración y Control de Aduanas de los EE.UU. [Immigration and Customs Enforcement (ICE)] John Kelleghan.

Chiles, 22, se declaró culpable ante el Juez Federal de Distrito Arthur J. Schwab el 14 de julio de 2010 de un cargo de participar en una empresa de explotación infantil. Según el expediente judicial y los procesos judiciales, Chiles y terceros distribuyeron imágenes y videos de niños siendo abusados sexualmente a otros miembros de un grupo internacional con membresía restringida formado en un portal de redes sociales. Miembros del grupo se enviaron mutuamente miles de imágenes y videos sexuales explícitos de niños, muchos de los cuales mostraban gráficamente a varones previos a la pubertad, entre ellos algunos infantes, siendo abusados sexualmente y a veces sodomizados o atados.

Este caso fue investigado por la HSI en Pittsburgh y la Unidad de Investigaciones de Alta Tecnología de la Sección de Explotación y Obscenidad Infantiles [Child Exploitation and Obscenity Section (CEOS)] de la División de lo Penal. Estuvieron a cargo de la acusación en el caso el Fiscal Federal Auxiliar Craig W. Haller del Distrito Oeste de Pensilvania y el Abogado Litigante de la CEOS Andrew McCormack.

Este caso fue entablado como parte del Proyecto Niñez Segura, una iniciativa nacional para combatir la creciente epidemia de explotación y abuso sexual de menores lanzada en mayo de 2006 por el Departamento de Justicia. Encabezado por las Fiscalías Federales y la CEOS, el Proyecto Niñez Segura reúne recursos federales, estatales y locales para ubicar, aprehender y enjuiciar mejor a individuos que exploten a menores a través del Internet, así como también identificar y rescatar víctimas. Para obtener más información sobre el Proyecto Niñez Segura, visite www.projectsafechildhood.gov

WASHINGTON – Michael P.S. Scanlon, 40, a business partner of former lobbyist Jack Abramoff, was sentenced today in U.S. District Court in Washington, D.C., to 20 months in prison for his role in a wide-ranging public corruption and fraud conspiracy, announced the Justice Department’s Criminal Division and the FBI.

 

Scanlon also was ordered by U.S. District Court Judge Ellen S. Huvelle to pay $20,191,537 in restitution to his victims and to serve three years of supervised release following his prison term, as well as to perform 300 hours of community service. Scanlon pleaded guilty in November 2005 to a one-count information charging him with participating in a conspiracy with others to commit bribery, mail and wire fraud, and honest services fraud.

 

According to court documents, from March 2000 through 2001, Scanlon was employed in the Washington, D.C., offices of two law and lobbying firms where Abramoff worked. During this time, Scanlon also formed and began to operate Capital Campaign Strategies LLC (CCS), a company that provided grass-roots work, public relations services and election campaign support.

 

In pleading guilty, Scanlon admitted that he and Abramoff conspired to defraud four Native American Indian tribes that either operated or were interested in operating gaming casinos in a scheme referred to as “Gimme Five.” Each of these four clients, which were tribes located in Mississippi, Louisiana, Texas and Michigan, hired Abramoff to give advice regarding how best to limit competition from competing casinos or, in one instance, to re-open a previously closed casino. According to court documents, once Abramoff had established a relationship with the tribal clients, he told them that they needed grass-roots work and public relations services, and he recommended Scanlon and CCS primarily to provide these services. As Scanlon knew, the clients relied on Abramoff’s recommendation in deciding to hire Scanlon and CCS because of Abramoff’s expertise in these matters.

 

As part of the scheme, Scanlon and Abramoff agreed to charge fees that incorporated huge profit margins and then split the net profits in a secret kick-back arrangement. According to information presented in court, Scanlon knew keeping the kick-back arrangement a secret from the clients was crucial to the success of their scheme, therefore he and Abramoff concealed the arrangement from the tribal clients. According to the plea agreement, CCS received net profits of approximately $39.5 million through this scheme. Scanlon kicked-back approximately $20 million to Abramoff for his assistance to CCS in obtaining these profits.

 

In addition to the kick-back scheme, Scanlon also admitted that he, Abramoff and others engaged in a pattern of bribery and honest services fraud. Through these schemes, Scanlon and the lobbyist co-conspirators offered and provided a stream of things of value to public officials, including trips, campaign contributions, meals and entertainment, in exchange for agreements that the public officials would use their official positions and influence to benefit Abramoff, Scanlon and their clients.

 

In one example, according to court documents, Scanlon and Abramoff provided a stream of things of value to former Congressman Robert Ney, and members of his staff, in exchange for numerous official acts. According to court documents, the things of value included a lavish trip to Scotland to play golf on world famous courses; tickets to sporting events and other entertainment; regular meals at restaurants, including Abramoff’s restaurant, Signatures; and campaign contributions for Ney, his political action committees and other political committees on behalf of Ney. In exchange for these things of value, Scanlon and Abramoff, together and separately, sought and received Ney’s agreement to perform, both directly and through others, a series of official acts. These acts included agreements to support and pass legislation, agreements to place statements in the congressional record, meetings with Abramoff and Scanlon’s clients, and advancing the application of a client of Abramoff’s for a license to install wireless telephone infrastructure in the House of Representatives.

 

To date, 20 individuals, including lobbyists and public officials, have pleaded guilty or been convicted at trial in connection with the activities of Abramoff and his associates. Abramoff pleaded guilty in January 2006 to conspiracy to commit honest services fraud, honest services fraud and tax evasion. He was sentenced in September 2008 to 48 months in prison.

 

This case was prosecuted by Senior Trial Attorney Mary K. Butler and Trial Attorney M. Kendall Day of the Public Integrity Section, and Assistant Chief Nathaniel B. Edmonds of the Fraud Section. The case was investigated by the FBI, the General Services Administration Office of Inspector General, the Department of the Interior Office of the Inspector General, and the Internal Revenue Service – Criminal Investigation.

WASHINGTON – Tyson Foods Inc. has agreed to pay a $4 million criminal penalty to resolve an investigation into improper payments by company representatives to government-employed inspection veterinarians in Mexico, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office.    

 

“Tyson Foods used false books and sham jobs to hide bribe payments made to publicly-employed meat processing plant inspectors in Mexico,” said Assistant Attorney General Breuer.  “The penalty and resolution announced today reflect the company’s disclosure of this conduct, its cooperation with the government’s investigation and its commitment to implementing enhanced controls.”

 

A criminal information filed in U.S. District Court in the District of Columbia in connection with a deferred prosecution agreement charges Tyson with conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and with violating the FCPA.  Tyson, which is headquartered in Springdale, Ark., produces prepared food products.  As part of a deferred prosecution agreement with the department, Tyson acknowledged responsibility for the actions of its subsidiaries, employees and agents who made improper payments to government-employed veterinarians who inspected two of its chicken processing plants in Gomez Palacio, Mexico. 

 

Any company that exports meat products from Mexico must participate in an inspection program, supervised by the Mexican Department of Agriculture.  According to court documents, the inspection program at each facility is supervised by an on-site veterinarian employed by the government of Mexico to ensure that all exports conform to Mexican health and safety laws.

 

According to documents filed in court, Tyson’s Mexican subsidiary, Tyson de Mexico, paid approximately $90,000 between 2004 and 2006, to two publicly-employed veterinarians who inspected its Mexican plants, resulting in profits of approximately $880,000.  The payments were made both directly to the veterinarians and indirectly through their wives, who Tyson de Mexico listed on its payroll, although neither performed any services for Tyson.  According to court documents, the bribe payments were made to keep the veterinarians from disrupting the operations of the meat-production facilities.  When payments to the spouses were terminated in 2004, Tyson representatives agreed to increase the amount paid to the veterinarians to match the amount previously paid to their spouses.

 

The agreement requires that Tyson pay a $4 million penalty, implement rigorous internal controls, and cooperate fully with the department.  The agreement recognizes Tyson’s voluntary disclosure and thorough self-investigation of the underlying conduct.  If Tyson abides by the terms of the agreement for the two-year term, the department will dismiss the criminal information.

 

In a related matter, Tyson reached a settlement today with the U.S. Securities and Exchange Commission, under which it agreed to pay more than $1.2 million in disgorgement of profits, including pre-judgment interest.

 

This case is being prosecuted by Trial Attorney Kathleen M Hamann of the Criminal Division’s Fraud Section and investigated by the FBI’s Washington Field Office.

WASHINGTON – Thierno M. Diallo of Cincinnati was sentenced to 24 months in prison by U.S District Court Judge Sandra Beckwith in Cincinnati for aiding and assisting in the preparation of false tax returns, the Justice Department and the Internal Revenue Service (IRS) announced today.  

On Aug. 6, 2010, a jury found Diallo guilty of seven counts of aiding and assisting the preparation of false tax returns. According to documents and testimony presented during the trial, for the 2005-2007 tax years, Diallo prepared materially false U.S. Individual Income Tax Returns (Forms 1040) for customers of his return preparation business, Madina Consulting Services. These returns caused the IRS to issue refunds that his customers were not entitled to receive. Witnesses testified that Diallo, a U.S. citizen originally from Guinea, used his knowledge of west African culture and language to recruit customers from other west African nations who live in the Cincinnati area. These witnesses testified that Diallo included false items on their returns without their knowledge.   

At sentencing, Judge Beckwith found that the intended tax loss to the government associated with this scheme was $95,370.  

In addition to the prison term, Judge Beckwith ordered Diallo to serve 1-year of supervised release. As a condition of supervised release, Judge Beckwith barred Diallo from engaging in the business of tax return preparation.  

Acting Assistant Attorney General John A. DiCicco of the Justice Department’s Tax Division and Carter M. Stewart, U.S. Attorney for the Southern District of Ohio commended IRS Criminal Investigation special agents who investigated the case and Tax Division Trial Attorney Melissa Siskind and Assistant U.S. Attorney Deborah Grimes, who prosecuted the case.  

More information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax . 

WASHINGTON – A medical assistant was sentenced today to 36 months in prison for his role in a conspiracy to defraud the Medicare program, the Departments of Justice and Health and Human Services announced. Guy Ross was also sentenced by U.S. District Judge Denise Page Hood in the Eastern District of Michigan to three years of supervised release following his prison term and was ordered to pay $472,623 in restitution.

Ross, 51, pleaded guilty in July 2010 to one count of conspiracy to commit health care fraud. According to court documents, Ross received kickbacks from the owners and/or operators of two Detroit-area home health agencies, Patient Choice Home Healthcare Inc. and All American Home Care Inc., in exchange for referring home health patients to those entities. Ross admitted to receiving $500 per patient, paid either by check or in cash, in exchange for providing co-conspirator Mohammed Shahab with Medicare beneficiary information for various patients he recruited. After paying the kickbacks to Ross, Shahab, an owner of Patient Choice and All-American, billed Medicare for home health visits purportedly made to the beneficiaries recruited by Ross. Ross referred 21 patients to Patient Choice and All American. During the time Ross participated in the scheme, Patient Choice and All American submitted claims for $172,573 in improper benefits. Shahab pleaded guilty in February 2010 to health care fraud charges in connection with this case.

According to court documents, Ross also admitted to engaging in a similar scheme with a home health agency called Visiting Nurses Services (VNS), a home health agency that purportedly provided physical therapy services. Ross admitted he accepted money in exchange for providing patient referrals to VNS. According to court documents, Ross referred approximately 80 patients to VNS and VNS submitted claims for $300,050 as a result of those referrals.

 

In total, Ross’s kickback arrangements with Patient Choice, All American and VNS resulted in $472,623 in fraudulent billing to Medicare.

 

Of the total restitution amount, Ross was ordered to pay $172,573 joint and several with co-defendants in the Patient Choice and All American scheme.

Today’s sentence was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.

The case was prosecuted by Trial Attorney Gejaa T. Gobena of the Criminal Division’s Fraud Section.  The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. 

 

Since its inception in March 2007, Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 850 individuals and organizations that collectively have billed the Medicare program for more than $2.1 billion.  In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov

WASHINGTON -- A Massachusetts man was sentenced today in U.S. District Court in Providence, R.I., to 12 months and one day in prison for tax evasion related to an FBI investigation of organized crime activity in Rhode Island.

 

U.S. District Court Chief Judge Mary M. Lisi also ordered Gerald Diodati, 61, of Seekonk, Mass., to pay $194,031 in restitution and to serve three years of supervised release following his prison term. Diodati pleaded guilty in November 2010 to tax evasion related to his 2003 income tax filings.

 

Diodati’s sentence was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Peter F. Neronha for the District of Rhode Island ; Acting Assistant Attorney General John A. DiCicco of the Tax Division; Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Field Office; and William P. Offord, Special Agent in Charge of the Boston Field Office of the Internal Revenue Service - Criminal Investigation (IRS-CI)

According to court documents, f rom approximately 2003 through 2006, Diodati concealed from the IRS at least $586,000 he earned through his construction business by converting the proceeds of his businesses to cash and using check cashing services to evade assessment of income tax.  For each year of the scheme, false income tax returns were prepared and filed, concealing additional taxes Diodati rightfully owed.  In all, from 2003 through 2006, Diodati attempted to evade the assessment of more than $194,000 in federal income taxes.

 

According to information presented in court, the FBI established an undercover company, Hemphill Construction, which sought the award of union construction contracts.  Diodati began working as a consultant to Hemphill Construction in 2002, operating his own businesses out of the construction company’s office in Johnston, R.I. 

 

In 2003, Hemphill Construction was awarded a subcontract after signing a collective bargaining agreement with the Rhode Island Laborers District Council on behalf of three local unions, to perform demolition work at the Rising Sun Mills rehabilitation project in Providence.  Hemphill, in turn, subcontracted the work to Diodati through RI Demolition Inc., a company Diodati formed for this purpose.  According to information presented during the plea hearing, Diodati suggested to Hemphill in late 2003 that he be paid in cash for the work that his company performed on the Rising Sun Mills project.  Diodati proposed that Hemphill keep 20 percent of what he was owed and pay him the balance in cash in order to reduce his taxable income, stating that, “Uncle Sam doesn’t have to know about it, so it keeps me down in the lower bracket.”  Diodati later noted that both Hemphill and RI Demolition made money on the scheme and that, “the only one who is losing is the government.”

           

According to information presented in court, Diodati requested that the money owed him by Hemphill be paid in cash installments placed in a safety deposit box he opened at a local bank, rather than by business checks.  Between December 2003 and March 2004, Diodati received more than $230,000 in cash payments for construction work placed into his safety deposit box. 

           

As a result of this practice as well as other means Diodati used to conceal income, RI Demolition underreported business receipts to the IRS for 2003 by $244,486.  In August 2004, Diodati tried to evade the assessment of a substantial income tax by causing to be prepared, signed and filed an individual income tax return for tax year 2003 that reported zero taxable income, which meant no taxes were due, when in fact his actual tax liability was $58,503.  

 

The case was prosecuted by Trial Attorney Scott Lawson of the Criminal Division’s Organized Crime and Racketeering Section and Trial Attorney Jessica Nuzzellilo of the Tax Division. 

 

The case was investigated by the FBI and IRS – Criminal Investigation.

WASHINGTON – The United States has sued David Champion of Pahrump, Nev., seeking to bar him from promoting an alleged tax fraud scheme designed to assist his customers evade paying federal taxes, the Justice Department announced today.

According to the civil injunction complaint filed in Los Angeles federal court, Champion promotes a tax fraud scheme based on the frivolous claim that U.S. citizens can choose to opt out of federal income taxation by declaring themselves to be "non-taxpayers." The lawsuit alleges that Champion, who previously resided in Los Angeles, helps customers evade federal taxes by setting up sham "pure trusts" to which they transfer their businesses and personal assets.

The government further alleges that Champion falsely tells his customers that their purported trusts need not file income tax returns or pay taxes. According to the complaint, Champion himself has an unpaid federal tax liability exceeding $800,000.

Champion’s misconduct, the government alleges, has led to civil and criminal penalties against his customers. The complaint states that Internal Revenue Service inquiries concerning eight of Champion’s customers revealed that he had assisted them in evading payment of approximately $1.4 million in income taxes.

In the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the Justice Department website.

WASHINGTON – The Justice Department announced today that Dalton Township, Mich., will pay $62,500 to settle a lawsuit alleging that the township discriminated against a group home for persons recovering from drug and alcohol addiction, in violation of the federal Fair Housing Act and Title II of the Americans with Disabilities Act. The settlement was approved today by Judge Gordon J. Quist of the U.S. District Court for the Western District of Michigan.

"The Fair Housing Act and the Americans with Disabilities Act ensure that persons with disabilities, including those recovering from addiction, can live in a community of their choosing free from discrimination," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Justice Department will continue its vigorous enforcement of federal laws to protect the civil rights of persons with disabilities across the country."

"Cities and towns have an obligation to make reasonable accommodations to their zoning policies when they are necessary to afford people with disabilities the same housing opportunities that others enjoy," said John Trasviña, Department of Housing and Urban Development (HUD) Assistant Secretary for Fair Housing and Equal Opportunity.  "HUD will continue to work with the Justice Department to enforce the Fair Housing Act to ensure equal housing opportunities for people with disabilities."

Under the terms of the proposed consent decree, Dalton Township will:

• Pay $55,000 to the owner of the group home, and permit him to operate the group home for up to nine men recovering from alcohol and drug dependency at its current location;
• Pay $7,500 to the United States as a civil penalty;
• Develop a written policy that will provide a process by which persons may request reasonable accommodations or modifications on the basis of disability from the Township’s zoning and land use requirements; and
• Obtain training in the Fair Housing Act and Americans with Disabilities Act for Township officials involved in land use and zoning decisions.

The settlement resolves a lawsuit filed by the Justice Department on July 28. 2010, alleging that the township violated the Fair Housing Act and Title II of the Americans with Disabilities Act when it refused to grant a special use permit that would have allowed a group home for persons recovering from drug and alcohol addiction to continue operating. The United States’ complaint alleged that the group home had provided housing from persons recovering from drug and alcohol addictions since 2006. Residents of the home were subject to random unannounced drug testing and were also required to attend regular Alcoholics Anonymous and/or Narcotics Anonymous meetings. After the township refused to allow the home permission to continue operating, the owner filed a complaint with HUD, which referred the matter to the Justice Department.

Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Title II of the Americans with Disabilities Act requires that state and local governments give persons with disabilities an equal opportunity to benefit from all of their programs, services and activities.

More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination or have information related to this lawsuit can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777.

WASHINGTON – A federal jury in the District of Columbia today convicted a former staff member in the U.S. House of Representatives on corruption charges relating to his acceptance of an all-expenses paid trip to Game One of the 2003 World Series , announced the Criminal Division and the FBI.

 

Fraser C. Verrusio, 41, was convicted after a 10-day trial on one count of conspiring to accept an illegal gratuity, one count of accepting an illegal gratuity and one count of making a false statement in failing to report his receipt of gifts from a lobbyist and the lobbyist’s client on his 2003 financial disclosure statement.

 

“Today, a federal jury in the District of Columbia sent a strong message that corruption on Capitol Hill will not be tolerated. Accepting gifts from lobbyists and then lying about those gifts on financial disclosure forms is simply not acceptable,” said Principal Deputy Assistant Attorney General Mythili Raman. “The Criminal Division’s Public Integrity Section and our partners in the U.S. Attorneys’ Offices are committed to holding accountable government servants who abuse their positions for personal gain.”

 

“Mr. Verrusio’s conduct cuts against the thousands of government workers who live their lives by the ethical code they pledged to uphold,” said James W. McJunkin, Assistant Director of the FBI’s Washington Field Office. “This case of public corruption serves as a reminder that misuse of position extends to all levels of government service.  As seen here, accepting sporting tickets is influence peddling, no matter in what arena it occurs.”

According to evidence presented at trial, Verrusio worked as the policy director for the U.S. House of Representatives Committee on Transportation and Infrastructure. The committee had responsibility for, among other things, the Federal Highway Bill in the House of Representatives.

 

According to evidence and testimony presented at trial, Verrusio and Trevor Blackann, a legislative assistant to a U.S. Senator, accepted an all-expenses-paid trip to Game One of the 2003 World Series from a lobbyist working for an equipment rental company interested in inserting three amendments into the Federal Highway Bill. The trip was funded by the equipment rental company and the lobbyist’s firm. According to evidence presented at trial, the senator for whom Blackann worked also served on a committee with responsibility for the Federal Highway Bill. Evidence also established that one of the lobbyists who helped arrange for the trip worked with former lobbyist Jack Abramoff, and that the equipment rental company was a client at Abramoff’s firm.

 

Testimony at trial established that Verrusio accepted the trip knowing it was given because of official assistance the equipment rental company expected he would provide in connection with its efforts to secure favorable amendments to the Federal Highway Bill.

 

The all-expenses paid trip accepted by Verrusio and Blackann included round-trip commercial airline travel from Washington, D.C., to New York City, use of a chauffeured Cadillac Escalade for transportation while in New York City, a ticket for each individual to Game One of the World Series, lodging, a steak dinner, drinks and entertainment at a strip club. According to evidence presented at trial, Verrusio, Blackann, the lobbyist and the equipment rental company representative discussed the Federal Highway Bill and the equipment rental company during a steak dinner on the all-expenses paid trip.

 

Federal law required Verrusio to report his receipt of gifts valued at more than $285 per year from a single source on a 2003 annual financial disclosure statement. Evidence at trial established that Verrusio made a false statement on that form when he certified that the form was, “true, complete and correct,” when in truth and in fact Verrusio knew and believed the form to be incomplete and incorrect in that it did not identify the World Series trip and related gifts, their value or their source.

At sentencing, scheduled for May 6, 2011, Verrusio faces a maximum penalty of five years in prison and a $250,000 fine on the conspiracy charge. He faces a maximum of two years in prison and a $250,000 fine on the illegal gratuity charge, and a maximum of five years in prison and a $250,000 fine on the false statement charge.

 

Blackann previously pleaded guilty for his role in the scheme. To date, 20 individuals, including lobbyists and public officials, have pleaded guilty or been convicted at trial in connection with the activities of Abramoff and his associates. Abramoff pleaded guilty in January 2006 to conspiracy to commit honest services fraud, honest services fraud and tax evasion. He was sentenced in September 2008 to 48 months in prison.

 

This case is being prosecuted by Deputy Chief Justin V. Shur and Trial Attorneys Emily Rae Woods and David V. Harbach II of the Criminal Division’s Public Integrity Section. The investigation was conducted by the FBI’s Washington Field Office.

WASHINGTON – A federal court has permanently barred Jody S. Ball of Bryson City, N.C.,from preparing federal income tax returns for others, the Justice Department announced today. The injunction order, to which Ball consented, was entered by Judge Martin Reidinger of the U.S. District Court for the Western District of North Carolina. The order requires Ball to provide the government with a list of all persons for whom she prepared federal tax returns since January 2007 and to send each person a copy of the court’s order   

According to the government’s complaint, Ball, doing business as The Tax Lady Inc. and Jody Ball Accounting, included false claims for charitable donation deductions, business expense deductions and earned income tax credits on tax returns that she and her businesses prepared. Even after the Internal Revenue Service (IRS) imposed penalties on Ball in 2004, she allegedly prepared more than 1,600 federal income tax returns during and after 2006. According to the complaint, of those returns that the IRS audited, approximately 80 percent understated customers’ tax liabilities.  

In the past ten years, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the Justice Department’s website.

WASHINGTON – CEMEX Inc., one of the largest producers of Portland cement in the United States, will spend an estimated $2 million on pollution controls that will reduce harmful emissions of nitrogen oxides (NOx) and sulfur dioxide (SO2), pollutants that can lead to childhood asthma, acid rain, smog and impaired visibility in national parks. Under a settlement to resolve Clean Air Act violations at its cement plant in Fairborn, Ohio, CEMEX will also pay a $1.4 million penalty, the U.S. Department of Justice and the Environmental Protection Agency (EPA) announced today.

“Through this action, the United States and Ohio will secure reductions of harmful emissions by requiring that CEMEX adopt state of the art technology and take immediate steps to control pollutants,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. “As in the case of other Portland cement plants that have agreed to come into compliance with the Clean Air Act, the CEMEX plant has been a major source of air pollution, and this settlement will result in a healthier environment for residents of Fairborn, Ohio, and the surrounding region.”

“Emissions of harmful pollutants like sulfur dioxide and nitrogen oxides can lead to a number of serious health and environmental problems, including premature death and heart disease,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement will help keep harmful air pollution out of Ohio communities, protect children with asthma and prevent region-wide public health problems.”

The settlement, which is subject to court approval, addresses CEMEX modifications to its cement plant which were made without obtaining a permit as required by the Clean Air Act. Major sources of air pollution are required to obtain such permits before making changes that would result in a significant emissions increase of any pollutant. Today’s settlement ensures that the proper equipment will be installed to reduce future emission levels.

CEMEX will install state of the art emission control technologies that will reduce annual emissions of NOx by approximately 2,300 tons and SO2 by approximately 288 tons. Air pollution from cement plants can travel significant distances downwind, crossing state lines and creating region-wide health problems. These effects can have greater impacts on communities disproportionately exposed to environmental risks and to vulnerable populations, including children.

Reducing air pollution from the largest sources of emissions, including cement facilities, is one of EPA’s National Enforcement Initiatives for 2011-2013. The initiative continues EPA’s focus on improving compliance with the new source review provisions of the Clean Air Act among industries that have the potential to cause significant amounts of air pollution. In Fiscal Year 2010, EPA’s enforcement actions in the cement manufacturing, coal-fired power plant, glass and acid sectors led to the reduction or treatment of approximately 370 million pounds of pollution, $1.4 billion in estimated pollution controls and $14 million in civil penalties.

CEMEX, a global building materials company provides cement and concrete products to construction projects in every sector: industrial, commercial, residential and municipal, with more than 100 aggregate quarries and hundreds of ready-mix concrete plants in the United States. CEMEX is one of the largest producers of cement in the United States, owning and operating 14 Portland cement kiln plants. The U.S. headquarters is located in Houston.

The $1.4 million penalty will be distributed between the United States, the state of Ohio and the Regional Air Pollution Control Agency serving Ohio’s Clark, Darke, Greene, Miami, Montgomery and Preble Counties. The state will contribute 20 percent of its share of the settlement to Ohio EPA’s Clean Diesel School Bus Program Fund.

The proposed consent decree will be lodged with the U.S. District Court for the Southern District of Ohio, Western Division, and will be subject to a 30-day public comment period.

More information on today’s settlement: www.epa.gov/compliance/resources/cases/civil/caa/cemexfairborn.html

More information on EPA’s National Enforcement Initiatives: www.epa.gov/compliance/data/planning/initiatives/index.html

WASHINGTON – The owners and operators of a Brooklyn-area durable medical equipment (DME) company pleaded guilty yesterday to defrauding the Medicare program, announced the Departments of Justice and Health and Human Services (HHS).

 

Parke Levy, the owner of a DME company called Americare, and his mother Lorraine Levy, the director of customer service for Americare, each pleaded guilty before U.S. District Judge I. Leo Glasser in U.S. District Court in Brooklyn to one count of conspiracy to commit health care fraud.  In their plea, Parke Levy, 48, and Lorraine Levy, 79, admitted that they billed Medicare for equipment and supplies that were never actually provided to Medicare beneficiaries.  Sentencing is scheduled for May 17, 2011.

 

According to the indictment, Lorraine Levy solicited Medicare beneficiaries to whom Americare could provide diabetic supplies, including “free” shoes and inserts every year, even if the supplies were not medically necessary. Parke Levy and others met with Medicare beneficiaries to measure their feet using a measuring stick or ruler.  Parke Levy and Lorraine Levy then submitted or caused to be submitted false Medicare claims for three pairs of custom molded inserts per patient, when in fact only off-the-shelf inserts were provided to beneficiaries.

 

The guilty pleas were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Loretta Lynch of the Eastern District of New York and Thomas ODonnell, Special Agent-in-Charge of the HHS Office of Inspector General (OIG) New York office.

 

The case is being prosecuted by Trial Attorney Katherine Houston of the Criminal Division’s Fraud Section. The case is being investigated by the FBI; HHS-OIG; Department of Labor, Office of the Inspector General; and the New York State Office of the Medicaid Inspector General.

 

This case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York.

Since their inception in March 2007, Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 850 individuals who collectively have falsely billed the Medicare program for more than $2.1 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov

WASHINGTON – Un asistente médico fue sentenciado hoy a 36 meses en prisión por su papel en una conspiración para defraudar al programa Medicare, anunciaron hoy los Departamentos de Justicia y de Salud y Servicios Humanos. Guy Ross también fue sentenciado por la Jueza Federal de Distrito Denise Page Hood en el Distrito Este de Michigan a tres años de libertad bajo supervisión después de haber cumplido su sentencia en prisión y se le ordenó pagar 472,623 dólares en restitución.

Ross, 51, se declaró culpable en julio de 2010, de un cargo de conspiración para cometer fraude de atención médica. Según el expediente judicial, Ross recibió comisiones ilícitas de los propietarios y/o operadores de dos agencias de atención médica domiciliaria del área de Detroit, Patient Choice Home Healthcare Inc. y All American Home Care Inc., a cambio de remitir a pacientes de atención domiciliaria a esas entidades. Ross admitió recibir 500 dólares por paciente, pagados con cheque o en efectivo, a cambio de entregarle a su coconspirador Mohammed Shahab información de beneficiarios de Medicare perteneciente a distintos pacientes que reclutaba. Después de pagarle las comisiones ilícitas a Ross, Shahab, propietario de Patient Choice y All-American, facturaba a Medicare visitas de atención domiciliaria supuestamente realizadas a los beneficiarios reclutados por Ross. Ross remitió 21 pacientes a Patient Choice y All American. Durante el período en que Ross participó en el ardid, Patient Choice y All American presentaron reclamos por 172,573 dólares de beneficios indebidos. Shahab se declaró culpable en febrero de 2010 de acusaciones de fraude en la atención médica relacionadas con este caso.

Según el expediente judicial, Ross también admitió haber participado en un ardid similar con una agencia de atención médica domiciliaria llamada Visiting Nurses Services (VNS), una agencia de atención médica domiciliaria que supuestamente brindaba servicios de terapia física. Ross admitió haber aceptado dinero a cambio de remitir pacientes a VNS. Según el expediente judicial, Ross remitió aproximadamente 80 pacientes a VNS y VNS presentó reclamos de 300,050 dólares como resultado de esas remisiones.

En total, los arreglos de comisiones ilícitas de Ross con Patient Choice, All American y VNS provocaron la presentación de facturas fraudulentas a Medicare con un valor de 472,623 dólares.

Del monto total de restitución, se le ordenó a Ross que pagara 172,573 dólares conjuntamente con diversos codemandados en el ardid de Patient Choice y All American.

La sentencia de hoy fue anunciada por el Secretario de Justicia Auxiliar Lanny A. Breuer de la División de lo Penal; la Fiscal Federal para el Distrito Este de Michigan Barbara L. McQuade; el Agente Especial a Cargo Andrew G. Arena de la Oficina Local de Detroit del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)]; y el Agente Especial a Cargo Lamont Pugh III de la Oficina Regional de Chicago del Departamento de Salud y Servicios Humanos de los EE.UU., Oficina del Inspector General [U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG)].

Estuvo a cargo de la acusación en el caso el Abogado Litigante Gejaa T. Gobena de la Sección de Fraude de la División de lo Penal. El caso fue investigado por el FBI y HHS-OIG, y se inició como parte de la Fuerza de Ataque al Fraude contra Medicare, supervisada por la Sección de Fraude de la División de lo Penal y la Fiscalía Federal para el Distrito Este de Michigan.

Desde su creación en marzo de 2007, las operaciones de las Fuerzas de Ataque de Fraude contra Medicare en siete distritos obtuvieron las acusaciones formales de más de 850 individuos y organizaciones que, en conjunto, facturaron de manera fraudulenta al programa Medicare más de 2,100 millones de dólares. Además, los Centros para Servicios de Medicare y Medicaid del HHS, trabajando en conjunto con la HHS-OIG, están tomando medidas para aumentar la responsabilización y reducir la presencia de proveedores fraudulentos.

Para obtener más información sobre el Equipo de Prevención de Fraude de Atención Médica y Acción de Coacción [Healthcare Fraud Prevention and Enforcement Action Team (HEAT)], visite: www.stopmedicarefraud.gov

WASHINGTON – Michael Francis Bealonis, of Robinson, Penn., pleaded guilty today a charge related to the burning of a cross in the yard of an African-American juvenile in November 2009, the Justice Department announced today.

Bealonis, 19, pleaded guilty to conspiracy to interfere with the housing rights of another in federal court in Pittsburgh before Senior U.S. District Judge Maurice B. Cohill. Information presented during the plea hearing established that a cross burning occurred on Nov. 14, 2009, at a residence in Robinson that was home to a family with three minor children, one of whom is African-American and an adopted son of the family. The investigation determined that Bealonis and his co-conspirators agreed to burn a cross in the backyard of the home, and used boards to construct a 6-foot wooden cross with athletic socks attached that had been soaked in accelerant. Bealonis and one of his co-conspirators transported the cross to the garage of another co-conspirator, where they poured gasoline on the cross before Bealonis took it, jumped over a fence and carried it to the back yard of the victim’s house, where he pushed the cross into the ground and lit it. He also used racial slurs and expressed racial animus during the cross burning.

"This teen used an unmistakable symbol of bigotry and hate to threaten a family with violence simply because the race of a child. These incidents have no place in our country, and they are a reminder of the civil rights challenges we still face today," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "We will continue to aggressively prosecute hate crimes of this kind."

"This is a very important case, the prosecution of which reflects our commitment to civil rights and intolerance of any civil rights violations," stated U.S. Attorney for the Western District of Pennsylvania David Hickton.

Sentencing has been set for May 25, 2011, at 1 p.m. The law provides for a maximum punishment of 10 years in prison and a $250,000 fine.

The case was investigated by the FBI, together with the Pennsylvania State Police. The case is being prosecuted by Trial Attorney Patricia A. Sumner from the Civil Rights Division of the Department of Justice and Assistant U.S. Attorney Soo C. Song from the U.S. Attorney’s Office for the Western District of Pennsylvania.

            RALEIGH , N.C. -- Daniel Patrick Boyd, aka “Saifullah,” 40, pleaded guilty today in federal court in New Bern, N.C., to conspiracy to provide material support to terrorists and conspiracy to murder, kidnap, maim and injure persons in a foreign country.

 

The guilty plea by Boyd, a U.S. citizen and resident of North Carolina, was announced by David Kris, Assistant Attorney General for National Security, and George E.B. Holding, U.S. Attorney for the Eastern District of North Carolina.

 

Boyd was first charged along with seven other defendants in a federal indictment returned on July 22, 2009. He was arrested on July 29, 2009 and the indictment was unsealed. On Sept. 24, 2009, a federal grand jury returned a superseding indictment that added additional charges against Boyd and two of the other defendants.

 

According to the superseding indictment, during the period from 1989 through 1992, Boyd traveled to Pakistan and Afghanistan where he received military-style training in terrorist training camps for the purpose of engaging in violent jihad. Following this training, according to the indictment, he fought in Afghanistan.

 

According to the indictment, from roughly November 2006 through at least July 2009, Boyd conspired with the other defendants to provide material support and resources to terrorists, including currency, training, transportation and personnel. The defendants also conspired with others to murder, kidnap, maim and injure persons abroad during this period. The object of the conspiracy, according to the indictment, was to advance violent jihad, including supporting and participating in terrorist activities abroad and committing acts of murder, kidnapping or maiming persons abroad.

 

The indictment further alleges that, as part of the conspiracy, the defendants prepared themselves to engage in violent jihad and were willing to die as martyrs. They also allegedly offered training in weapons and financing, and helped arrange overseas travel and contacts so others could wage violent jihad overseas.

 

In addition, the defendants raised money to support training efforts, disguised the destination of such monies from the donors, and obtained assault weapons to develop skills with the weapons. Some defendants also allegedly radicalized others to believe that violent jihad was a personal religious obligation.

 

“Today, Daniel Patrick Boyd admitted his role in a multi-year conspiracy to advance violent jihad by recruiting and helping young men travel overseas to murder, kidnap, maim and injure persons. I applaud the many agents, analysts and prosecutors who helped bring about today's successful outcome,” said David Kris, Assistant Attorney General for National Security.

 

U.S. Attorney George E.B. Holding commented, “This case proves how our world is changing. Terrorists are no longer only from foreign countries but also citizens who live within our own borders. We must protect our homeland. I am committed to using any and all legal means to take on the challenge of finding and prosecuting others with similar radical views who plot violent attacks.”

 

“North Carolina and the United States are safer now that Daniel Boyd is no longer in a position to plot against us. His admission of guilt today proves to the world he intended to carry out violent jihad, which our evidence against him has shown. This should send a signal to any who may share Boyd’s extremist ideology -- the FBI and our law enforcement partners won’t back down in our fight to stop the next attack,” said Joseph S. Campbell, Acting Special Agent in Charge of the FBI in North Carolina.

 

“The Defense Criminal Investigative Service was proud to partner with the Raleigh FBI Joint Terrorism Task Force in this investigation,” said Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service (DCIS). “We remain steadfast in our commitment to protect America's war fighters whether overseas or at home in America. By thwarting the terror plans of this group, we averted the unnecessary loss of lives of US military members and others.”

 

At sentencing, set for May 2011, Boyd faces potential life in prison, followed by five years of supervised release, for conspiring to murder, kidnap, maim and injure persons in a foreign country and a potential 15 years in prison, followed by three years of supervised release, for conspiring to provide material support to terrorists.

 

The investigation was conducted by the FBI Raleigh-Durham Joint Terrorism Task Force, which includes the FBI, the DCIS, the North Carolina Alcohol Law Enforcement, the Raleigh Police Department, the Durham Police Department and the North Carolina Information Sharing and Analysis Center.

 

The prosecution is being handled by Assistant U.S. Attorneys John Bowler and Barbara D. Kocher of the U.S. Attorney’s Office for the Eastern District of North Carolina, and Trial Attorney Jason Kellhofer, of the Counterterrorism Section in the Justice Department’s National Security Division.

 

WASHINGTON – Simeon P. Stefanidakis, 60, formerly of Brookline, Mass., was sentenced today to 84 months in prison and five years of supervised release following his prison term for child pornography offenses, announced Assistant Attorney General Lanny A. Breuer for the Criminal Division, U.S. Attorney for the District of Massachusetts Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the FBI Boston Field Office.

Stefanidakis was sentenced by U.S. District Court Judge William G. Young in the District of Massachusetts. On Nov. 10, 2010, Stefanidakis pleaded guilty to four counts of transportation of child pornography and one count of possession of child pornography. Stefanidakis possessed thousands of images and videos of child pornography that included depictions of prepubescent minors and sadistic conduct. This case arose from an investigation by the Suffolk County, N.Y., Police Department of individuals sharing and trading child pornography over the Internet.

 

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .

 

The case against Stefanidakis was prosecuted by Assistant U.S. Attorney Michael I. Yoon of the District of Massachusetts and CEOS Trial Attorney Bonnie L. Kane of the Criminal Division. The case was investigated by the FBI and the Suffolk County Police Department. Significant assistance was provided by the Brookline Police Department and the U.S. Attorney’s Office for the District of Connecticut.

WASHINGTON – The United States has filed six lawsuits in five states to stop tax return preparers from fraudulently claiming the first-time homebuyer tax credit and the earned-income tax credit, the Justice Department announced today. The filings of those civil injunction complaints coincided with the indictment of a Philadelphia man on criminal charges of fraudulently claiming the first-time homebuyer credit. All of these actions are part of the Justice Department’s continuing efforts to halt tax scams involving false claims for tax credits and to prosecute those who fraudulently file tax returns containing those claims.

"We are working hard to ensure that those who try to cheat our country by filing phony claims for tax credits do not get away with it," said John A. DiCicco, Acting Assistant Attorney General of the Justice Department’s Tax Division. "Honest taxpayers will be pleased to see the Internal Revenue Service and the Justice Department continuing to investigate, prevent, and prosecute these types of schemes during the 2011 tax filing season. False claim cases are certainly a nationwide priority for the Tax Division. This kind of tax fraud is an insult to hard-working Americans who legitimately qualify for these tax credits."

First-Time Homebuyer Tax Credit Cases

According to the indictment, Jonathan Brownlee of Philadelphia was charged with 16 counts of filing false federal income tax returns that contained fraudulent claims for the first-time-homebuyer credit. He allegedly obtained personal information about several individuals through false pretenses and used that information to make false claims for the credit to the Internal Revenue Service (IRS), along with requests that refunds be deposited into bank accounts that he controlled or could access. Brownlee allegedly knew the individuals whose names he used were not entitled to the credit because they had neither purchased a home nor signed a contract to do so. If convicted, he faces a maximum prison sentence of 80 years and a maximum fine of $4 million.

The indictment was announced by Zane David Memeger, U.S. Attorney for the Eastern District of Pennsylvania; Acting Assistant Attorney General John A. DiCicco of the Justice Department’s Tax Division; and Special Agent-in-Charge Eric Hylton with the IRS Criminal Investigation Division Field Office in Philadelphia.

In addition, three of the announced injunction complaints involved the first-time homebuyer credit:

• A complaint filed in federal court in McAllen, Texas, alleges that tax return preparer Jose Cabrera and his business, JEC Business Consulting of Pharr, Texas, prepare federal income tax returns on which they falsely claim the first-time-homebuyer credit for their customers. The United States seeks a civil injunction order to stop them from improperly claiming the credit. The suit alleges that Cabrera makes no attempt to determine if his customers qualify for the credit and that he repeatedly claimed the credit on his customers’ tax returns even though he knew the customers had not purchased new homes. Cabrera allegedly claimed at least $985,000 in credits in 2009.
• The government has asked a federal court in Philadelphia to stop Friday James, a former high school math teacher from Lansdowne, Pa., from preparing any federal tax returns for others. The complaint alleges that James and his business, Frika Tax Services, falsely claim the first-time homebuyer credit and claim false business expense deductions for his customers, many of whom are West African immigrants with little or no knowledge of the credit. The government alleges that James repeatedly claimed the credit on his customers’ returns when he knew they had not purchased homes within the applicable time period and that he fabricated the date of purchase on forms he submitted to the IRS. James allegedly claimed at least $1.2 million in credits in 2009.
• The Justice Department sued tax-return preparer Delois Warren of Greensboro, Ala., and her business, Branjalo Tax Service, to stop her from preparing federal tax returns for others. Warren allegedly claimed the first-time homebuyer credit on her customers’ returns even after they told her that they did not purchase homes in the applicable tax years. The suit also alleges that Warren prepared returns containing false information in order to fabricate higher tax refunds through overstated earned-income tax credits.

The first-time homebuyer tax credit was created by the Housing and Economic Recovery Act of 2008, which included a refundable tax credit for first-time homebuyers equal to 10 percent of the purchase price, up to $7,500, for home purchases completed in 2008. The taxpayer was to repay the credit interest free over 15 years. Congress extended the credit in the American Recovery and Reinvestment Act of 2009, increased the maximum allowable amount to $8,000, and eliminated repayment of the credit if the taxpayer retained the residence for more than 36 months. The credit expired in 2010, so eligible taxpayers may still claim it on their 2010 federal income tax returns.

To protect the U.S. Treasury from fraudulent claims for this credit, the Tax Division, the U.S. Attorney’s offices and the IRS have vigorously prosecuted those who have abused the credit. Examples of these criminal prosecutions in 2010 include:

•  In December 2010, Kenneth Harris and Lacrecia Ward of Memphis, Tenn., pleaded guilty to conspiring to file false claims against the United States by filing false tax returns claiming the first-time homebuyer credit. Each of them faces a maximum penalty of 10 years in prison and a fine of $250,000 upon sentencing.
• In December 2010, Latricia Ann Williams, Gezelle Helena Amaechi and Shelton DeWayne Tanner were indicted by a federal grand jury in Arizona for conspiracy, wire fraud and aggravated identity theft. According to the indictment, the defendants filed 180 income tax returns falsely claiming more than $1 million in tax refunds based on, among other things, false statements of eligibility for tax credits such as the first-time homebuyer credit.
• In November 2010, Jeffrey Leon Ceaser of Montgomery, Ala., pleaded guilty to conspiring to defraud the United States and identity theft for his role in the filing of 158 federal tax returns that falsely claimed the first-time-homebuyer credit and fuel tax credits. Ceaser faces a maximum of 25 years in prison when sentenced. In December 2010, Ora Mae Adamson of Montgomery pleaded guilty to the same charges before the same court.
• In November 2010, Mary Singleton pleaded guilty in a South Carolina federal court to one count of assisting an individual in filing a fraudulent claim for the first-time homebuyer credit. She faces a maximum prison sentence of three years upon sentencing.
• In November 2010, Georgia Ann Cloud of Tallahassee, Fla., was indicted on 17 counts of assisting individuals in filing fraudulent tax returns with false claims for the first-time homebuyer credit and one count of filing such a tax return herself.
• In October 2010, Roderick Smith was sentenced by a federal court in Peoria, Ill., to 24 months in prison after having pleaded guilty to wire fraud and filing a false tax refund claim with the IRS. The indictment alleged that Smith falsely claimed on income tax returns that his clients were entitled to the first-time homebuyer credit. He was also ordered to pay $73,793 in restitution to the IRS.
• In October 2010, Gregory Carter of Columbus, Ga., was indicted on 25 counts of assisting in the preparation of fraudulent tax returns that included, among other things, false claims for first-time-homebuyer credits.
• In August 2010, Lois Torres of Uvalde, Texas, was indicted on 15 counts of assisting individuals in filing false federal income tax returns falsely claiming the first-time homebuyer credit.
• In July 2010, Byron Meeks of Independence, Mo., was indicted on 15 counts of filing false claims against the United States for, among other things, fraudulent first-time homebuyer credits. In December 2010, Meeks agreed to plead guilty to one of those counts. He faces a maximum prison sentence of five years upon sentencing.
• In April 2010, Kashawn Monique Savery of Los Angeles pleaded guilty to 10 counts of filing false claims against the United States. She admitted filing more than 200 false tax returns claiming more than $1.3 million in refunds based on fraudulently claimed first-time homebuyer tax credits and earned-income tax credits.

In addition, over the past year, the Justice Department has obtained civil injunctions against tax-return preparers on the basis of false claims for first-time homebuyer credits, including: Dianelys Armengol Guevara of Pembroke Pines, Fla.; Alberto Camejo of Hialeah, Fla.; and David Santiago , Paula Olivette Patrice, and Henry Ernesto Medina Jr. of Miami.

 

Earned-Income Tax Credit Cases

 

In addition to the lawsuit against Delois Warren discussed above, the Justice Department filed three other civil complaints seeking to stop tax-return preparers from filing false claims for the earned-income tax credit:

 The government asked a Texas federal court to bar two Houston-area tax preparers, Christopher Helton and Marcia Johnson, from preparing any more federal tax returns. The pair, who do business as M.C. Tax Service, M.C. Tax Interprise and M.J. Tax Service, allegedly claim false earned-income and fuel tax credits on their customers’ tax returns. The complaint alleges that the defendants routinely prepare tax returns that either claimed the earned-income credit for taxpayers who do not qualify for it or overstate the amount of the credit for eligible taxpayers. Helton and Johnson allegedly prepared tax returns claiming more than $1.5 million in earned-income tax credits during tax years 2007 through 2009, and the complaint describes fraudulent tax refunds based on false earned-income credits as a "rampant problem" at M.C. Tax Service.

• The Justice Department sued Carmen Gonzalez of Allentown, Pa., who does business as Carmen Tax Services in New Brunswick, N.J., to stop her from preparing tax returns for others. According to the complaint, Gonzalez fails to comply with due diligence requirements imposed by federal law on tax return preparers who claim the earned-income tax credit, and she falsifies her customers’ information in order to maximize their credits. She has allegedly prepared at least 2,500 returns since 2007.
• A complaint filed in federal court in Miami seeks to bar Milagros Espinal of Hialeah, Fla., from preparing tax returns for others. The government alleges that Espinal claims improper or false tax credits, including earned-income credits, as well as fabricated or overstated tax deductions. She allegedly prepared at least 2,000 returns for the 2004 through 2007 tax years.

Originally enacted by Congress in 1975, the earned-income tax credit benefits low-income working individuals and families. The amount of the credit depends on several facts, including the individual’s filing status, annual wages and number of dependents. It is a "refundable" credit because, if the amount of the credit exceeds the amount of tax owed, the difference may be claimed as a tax refund by eligible persons.

Over the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions against tax-scheme promoters and preparers of fraudulent tax returns, including those with false claims for earned-income tax credits. For example, over the past year, the Justice Department announced injunctions or injunction complaints against the following individuals in cases involving the earned-income credit: Sony Ducasse of Greenacres, Fla.; Maritza Villanueva of Irving, Texas; Michael Brier of R.I.; Saloum Njie of Atlanta; Shirley Clark of Jacksonville, Fla.; James King of Dublin, Ga.; George Thomas Gaines of Aurora, Colo.; Aurelia Sanderson Johnson of Montgomery; Jody Ball of Bryson City, N.C.; Christopher Musyoki and Samuel Nganga of Cobb County, Ga.; and John Lewis, Artels James and Perry Wright of Birmingham, Ala.

More information about the Tax Division’s continuing efforts to shut down and prosecute fraudulent tax-return preparers can be found on the division’s website.

 

WASHINGTON - Los Estados Unidos han entablado seis demandas en cinco estados para evitar que preparadores de declaraciones de impuestos reclamen de manera fraudulenta el crédito tributario para compradores de primera vivienda y por ingresos devengados, anunció hoy el Departamento de Justicia. La presentación de esas demandas de interdicto civil coincidió con la acusación formal de un hombre de Filadelfia por cargos penales de reclamar fraudulentamente el crédito para compradores de primera vivienda. Todas estas medidas forman parte de la labor constante del Departamento de Justicia para detener los ardides tributarios de reclamos falsos de créditos tributarios y enjuiciar a quienes presentan declaraciones de impuestos fraudulentas con esos reclamos.

"Estamos trabajando con ahínco para asegurarnos de que quienes tratan de engañar a nuestro país presentando reclamos falsos de créditos tributarios no se salgan con la suya", dijo John A. DiCicco, Secretario de Justicia Auxiliar Interino de la División de Impuestos del Departamento de Justicia. "A los contribuyentes honestos les alegrará ver a Servicios de Impuestos Internos y al Departamento de Justicia prosiguiendo su trabajo de investigar, prevenir y enjuiciar este tipo de ardid durante la temporada de presentación de declaraciones de impuestos de 2011. Los casos de reclamos falsos sin lugar a dudas son una de las prioridades de la División de Impuestos a nivel nacional. Este tipo de fraude tributario es un insulto para los estadounidenses trabajadores que califican legítimamente para recibir estos créditos tributarios".

Casos de crédito tributario para compradores de primera vivienda

Según la acusación formal, Jonathan Brownlee de Filadelfia fue acusado de 16 cargos de presentación de declaraciones falsas de impuestos federales que contenían reclamos falsos del crédito para compradores de primera vivienda. Se alega que Brownlee obtuvo información personal de diversos individuos usando falsos pretextos y la usó para realizar reclamos falsos del crédito a Servicios de Impuestos Internos [Internal Revenue Service (IRS)], junto con solicitudes de que los reembolsos se depositaran en cuentas bancarias que él controlaba o a las que podía acceder. Se alega que Brownlee sabía que las personas cuyos nombres utilizó no tenían derecho al crédito porque no habían comprado una propiedad ni habían firmado un contrato para hacerlo. De ser condenado, Brownlee enfrenta una condena máxima a prisión de 80 años y una multa máxima de 4 millones de dólares.

La acusación formal fue anunciada por Zane David Memeger, Fiscal Federal del Distrito Este de Pensilvania; el Secretario de Justicia Auxiliar Interino John A. DiCicco de la División de Impuestos del Departamento de Justicia; y el Agente Especial a Cargo Eric Hylton de la Oficina Local en Filadelfia de la División de Investigaciones Penales del IRS.

Además, tres de las demandas de interdicto anunciadas se relacionan con el crédito para compradores de primera vivienda:

• Una demanda entablada en el tribunal federal en McAllen, Texas alega que el preparador de declaraciones de impuestos Jose Cabrera y su empresa, EC Business Consulting de Pharr, Texas preparan declaraciones de impuestos federales a la renta en la que reclaman falsamente el crédito para compradores de primera vivienda para sus clientes. Los Estados Unidos solicitan una orden de interdicto civil para evitar que sigan reclamando el crédito indebidamente. La demanda alega que Cabrera no intenta determinar si sus clientes califican para el crédito y que supuestamente reclamó el crédito en las declaraciones de impuestos de sus clientes aunque sabía que no habían comprado nuevas propiedades. Se alega que Cabrera reclamó al menos 985,000 dólares en créditos en 2009.
• El gobierno le pidió a un tribunal federal en Filadelfia que evite que Friday James, un ex maestro secundario de matemáticas de Lansdowne, Filadelfia, prepare declaraciones de impuestos federales para terceros. La demanda alega que James y su empresa, Frika Tax Services, reclaman falsamente el crédito para compradores de primera vivienda y deducciones falsas de gastos de negocios para sus clientes, muchos de los cuales son inmigrantes de África Occidental que desconocen el crédito o no lo conocen en detalle. El gobierno alega que James reclamó en repetidas ocasiones el crédito en las declaraciones de sus clientes si bien sabía que no habían comprado propiedades en el período aplicable y que inventó la fecha de compra en los formularios que presentó al IRS. Se alega que James reclamó al menos 1.2 millones dólares en créditos en 2009.
• El Departamento de Justicia demandó a la preparadora de declaraciones de impuestos Delois Warren de Greensboro, Ala., y su empresa Branjalo Tax Service, para evitar que preparara declaraciones de impuestos para terceros. Se alega que Warren reclamó el crédito para compradores de primera vivienda en las declaraciones de sus clientes aun después de que le dijeron que no habían comprado viviendas en los años fiscales aplicables. La demanda también alega que Warren preparó declaraciones que contenían información falsa para inventar reembolsos tributarios superiores a través de créditos tributarios exagerados por ingresos devengados.

El crédito tributario para compradores de primera vivienda fue creado por la Ley de Vivienda y Recuperación Económica de 2008, que incluyó un crédito tributario reembolsable para compradores de primera vivienda equivalente al 10 por ciento del precio de compra, hasta 7,500 dólares, para compras de propiedades realizadas en 2008. El contribuyente luego debía pagar el crédito sin intereses a lo largo de 15 años. El Congreso amplió el crédito en la Ley de Recuperación y Reinversión de los Estados Unidos de 2009, incrementó la cifra máxima permitida a 8,000 dólares y eliminó la cláusula de pago del crédito si el contribuyente retenía esa residencia durante más de 36 meses. El crédito venció en 2010, por lo que los contribuyentes elegibles todavía pueden reclamarlo en sus declaraciones federales de impuestos a la renta 2010.

Para proteger al Tesoro de los EE.UU. de reclamos fraudulentos de este crédito, la División de Impuestos, las Fiscalías Federales y el IRS han enjuiciado enérgicamente a quienes abusaron del crédito. Ejemplos de estos enjuiciamientos penales en 2010 incluyen:

• En diciembre de 2010, Kenneth Harris y Lacrecia Ward de Memphis, Tenn., se declararon culpables de conspirar para presentar reclamos falsos a los Estados Unidos por presentar declaraciones de impuestos falsas que solicitaban el crédito para compradores de primera vivienda. Cada demandado enfrenta una sentencia máxima de 10 años en la prisión y una multa de 250,000 dólares.
• En diciembre de 2010, Latricia Ann Williams, Gezelle Helena Amaechi y Shelton DeWayne Tanner fueron acusados formalmente por un gran jurado federal de Arizona por conspiración, fraude telegráfico y robo de identidad agravado. Según la acusación formal, los demandados presentaron 180 declaraciones de impuestos a la renta en los que reclamaban falsamente más de 1 millón de dólares en reembolsos tributarios basándose, entre otras cosas, en declaraciones falsas de elegibilidad para créditos fiscales como el crédito para compradores de primera vivienda.
• En noviembre de 2010, Jeffrey Leon Ceaser de Montgomery, Ala. se declaró culpable de conspirar para defraudar a los Estados Unidos y de robo de identidad por su papel en la presentación de 158 declaraciones de impuestos federales que reclamaban falsamente el crédito para compradores de primera vivienda y el crédito fiscal para combustible. Ceaser enfrenta una sentencia máxima de 25 años en prisión al momento de la sentencia. En diciembre de 2010, Ora Mae Adamson de Montgomery se declaró culpable de los mismos cargos ante el mismo tribunal.
• En noviembre de 2010, Mary Singleton se declaró culpable en un tribunal federal de Carolina del Sur de un cargo de asistir a una persona para presentar un reclamo fraudulento por el crédito para compradores de primera vivienda. Enfrenta una sentencia máxima de tres años en prisión.
• En noviembre de 2010, Georgia Ann Cloud de Tallahassee, Fla. fue sentenciada por 17 cargos de asistir a personas para presentar declaraciones de impuestos fraudulentas con reclamos falsos del crédito para compradores de primera vivienda y un cargo de presentar ella misma una declaración de impuestos de este tipo.
• En octubre de 2010, Roderick Smith fue sentenciado por un tribunal federal en Peoria, Ill. a 24 meses de prisión después de declararse culpable de fraude telegráfico y de presentar un reclamo tributario falso al IRS. La acusación formal alegaba que Smith reclamó falsamente en declaraciones de impuestos a la renta que sus clientes tenían derecho al crédito para compradores de primera vivienda. También se le ordenó que pagara una restitución de 73,793 dólares al IRS.
• En octubre de 2010, Gregory Carter de Columbus, Ga. fue acusado formalmente de 25 cargos de asistir en la preparación de declaraciones de impuestos fraudulentas que incluían, entre otras cosas, reclamos falsos de créditos para compradores de primera vivienda.
• En agosto de 2010, Lois Torres de Uvalde, Texas, fue acusado formalmente de 15 cargos de asistir a personas para presentar declaraciones federales de impuestos a la renta que reclamaban falsamente el crédito para compradores de primera vivienda.
• En julio de 2010, Byron Meeks de Independence, Mo. fue acusado formalmente de 15 cargos de presentar reclamos falsos a los Estados Unidos, entre otras cosas, de créditos fraudulentos para compradores de primera vivienda. En diciembre de 2010, Meeks aceptó declararse culpable de uno de esos cargos. Enfrenta una sentencia máxima de cinco años de prisión.
• En abril de 2010, Kashawn Monique Savery de Los Ángeles se declaró culpable de 10 cargos de presentar reclamos falsos a los Estados Unidos. Savery admitió haber presentado más de 200 declaraciones de impuestos falsas en las que reclamaba más de 1.3 millones de dólares de reembolsos basándose en créditos fiscales fraudulentos para compradores de primera vivienda y por ingresos devengados.

Además, en el último año, el Departamento de Justicia ha obtenido interdictos civiles contra preparadores de declaraciones de impuestos por reclamos falsos de créditos para compradores de primera vivienda, entre ellos: Dianelys Armengol Guevara de Pembroke Pines, Fla.; Alberto Camejo de Hialeah, Fla.; y David Santiago , Paula Olivette Patrice y Henry Ernesto Medina Jr. de Miami.

Casos de crédito por ingresos devengados

Además de la demanda contra Delois Warren comentada anteriormente, el Departamento de Justicia presentó otras tres demandas civiles buscando evitar que preparadores de declaraciones de impuestos presentaran reclamos falsos de crédito por ingresos devengados:

El gobierno le pidió a un tribunal federal de Texas que les prohibiera a dos preparadores de declaraciones de impuestos del área de Houston, Christopher Helton y Marcia Johnson, que prepararan más declaraciones. La pareja, que hace negocios bajo las denominaciones M.C. Tax Service, M.C. Tax Interprise y M.J. Tax Service, supuestamente reclama créditos fiscales falsos por ingresos devengados y para combustible en las declaraciones de impuestos de sus clientes. La demanda alega que los demandados preparan normalmente declaraciones de impuestos que reclaman el crédito por ingresos devengados para contribuyentes que no califican para ese beneficio o exageran el monto del crédito para contribuyentes elegibles. Helton y Johnson supuestamente prepararon declaraciones de impuestos en las que reclamaron más de 1.5 millones de dólares en créditos fiscales por ingresos devengados durante los años fiscales 2007 a 2009, y la demanda describe reembolsos tributarios fraudulentos basados en créditos falsos por ingresos devengados como un "problema endémico" en M.C. Tax Service.

• El Departamento de Justicia demandó a Carmen Gonzalez de Allentown, Filadelfia, que hace negocios bajo la denominación de Carmen Tax Services en New Brunswick, N.J., para evitar que preparara declaraciones de impuestos para terceros. Según la demanda, Gonzalez no cumple con los requisitos de diligencia debida impuestos por las leyes federales a los preparadores de declaraciones de impuestos que reclaman el crédito fiscal por ingresos devengados y falsifica la información de sus clientes para maximizar sus créditos. Se alega que preparó al menos 2,500 declaraciones desde 2007.
• Una denuncia presentada en un tribunal federal en Miami busca prohibir que Milagros Espinal de Hialeah, Fla. prepare declaraciones de impuestos para terceros. El gobierno alega que Espinal reclama créditos fiscales indebidos o falsos, entre ellos créditos por ingresos devengados, así como también deducciones de impuestos inventadas o exageradas. Se alega que Espinal preparó al menos 2,000 declaraciones entre los años fiscales 2004 y 2007.

Promulgado originalmente por el Congreso en 1975, el crédito fiscal por ingresos devengados beneficia a personas y familias trabajadoras de bajos ingresos. El monto del crédito depende de diversos factores, entre ellos el estado de presentación de declaración, sueldos anuales y número de dependientes de la persona. Es un crédito "reembolsable" porque, si el monto del crédito supera la cifra del impuesto debido, las personas elegibles pueden reclamar la diferencia como devolución de impuestos.

En la última década, la División de Impuestos del Departamento de Justicia obtuvo cientos de interdictos contra promotores de ardides tributarios y preparadores de declaraciones de impuestos fraudulentas, entre ellas algunas con reclamos falsos de créditos fiscales por ingresos devengados. Por ejemplo, en el último año, el Departamento de Justicia anunció interdictos o demandas de interdicto contra las siguientes personas en casos relacionados con el crédito por ingresos devengados: Sony Ducasse de Greenacres, Fla.; Maritza Villanueva de Irving, Texas; Michael Brier de R.I.; Saloum Njie de Atlanta; Shirley Clark de Jacksonville, Fla.; James King de Dublin, Ga.; George Thomas Gaines de Aurora, Colo.; Aurelia Sanderson Johnson de Montgomery; Jody Ball de Bryson City, N.C.; Christopher Musyoki y Samuel Nganga de Cobb County, Ga.; y John Lewis, Artels James y Perry Wright de Birmingham, Ala.

Se puede hallar más información sobre la labor constante de la División de Impuestos para clausurar y enjuiciar a preparadores de declaraciones de impuestos fraudulentas en el portal de la división.

WASHINGTON - Cuarenta y un miembros de distintas pandillas callejeras han sido acusados en acusaciones formales o demandas penales emitidas hoy en cuatro distritos judiciales, anunció hoy el Departamento de Justicia [Department of Justice (DOJ)].

Las acusaciones formales y denuncias federales emitidas hoy acusan a miembros y asociados de diversas pandillas callejeras, entre ellos:

• Siete miembros de la pandilla Click Clack en Kansas City, Mo;
• 12 miembros de la pandilla Colonias Chiques en Los Ángeles;
• Dos miembros y asociados de las pandillas Sureño13 y San Chucos en Las Vegas;
• Siete miembros de la MS-13 en Washington;
• 13 miembros y asociados de la Tri-City Bomber en el área de McAllen, Texas.

Las acusaciones en estos casos separados se relacionan con un amplio rango de supuesta actividad ilegal, que incluye asociación ilícita, conspiración, asesinato, conspiración para cometer asesinato, narcotráfico, robo y tráfico de armas. Los demandados harán sus presentaciones iniciales ante el tribunal en los distritos en los que fueron acusados. Equipos de agentes de las fuerzas del orden público federales, estatales y locales arrestaron hoy a 29 de estos demandados y se esperan otros arrestos.

“Las pandillas amenazan la seguridad y estabilidad de vecindarios de todo el país”, dijo el Secretario de Justicia Auxiliar Lanny A. Breuer de la División de lo Penal. “Las pandillas propagan el miedo en nuestras comunidades, comerciando con armas, drogas y violencia, y pueden hacer que demasiados jóvenes elijan una vida dedicada al delito. El Departamento de Justicia está contraatacando tanto a pandillas callejeras locales como a grandes empresas de delincuencia organizada con alcance internacional. Con las acciones coordinadas de coacción anunciadas hoy, estamos dejando en claro que estamos comprometidos a desmantelar a pandillas grandes y pequeñas de costa a costa. ”

“Si bien estos casos se produjeron en diferentes partes del país, ejemplifican las amenazas comunes que representan los miembros de pandillas para nuestras comunidades”, dijo el Director Auxiliar de la División de Investigación Penal del FBI Kevin Perkins. “En una época, las pandillas se encontraban en las grandes ciudades, pero ahora sus operaciones están migrando a áreas rurales. También están cambiando los tipos de delitos cometidos por los miembros de pandillas. Antes eran venta de drogas y delitos menores y ahora son invasiones de hogares y fraude en la atención médica. El FBI empleará nuestras fuerzas de tarea, operaciones encubiertas y técnicas mejoradas de vigilancia para desmantelar pandillas y restablecer el orden en los vecindarios en los que infunden el terror. ”

“El tráfico de armas de fuego y los delitos violentos relacionados con las pandillas van de la mano. Las armas son las herramientas para intimidar y asesinar a ciudadanos inocentes y a rivales”, dijo el Director Interino del Buró de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos [Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)] Kenneth Melson. “Iniciativas de coacción como la de hoy hacen hincapié en poner fin a la violencia de pandillas que mina la calidad de vida en los vecindarios poniendo detrás de las rejas por mucho tiempo a los delincuentes. ”

“El trabajo del ICE sigue teniendo un impacto significativo en algunas de las pandillas más implacables del país”, dijo el Director del Servicio de Inmigración y Control de Aduanas [Immigration and Customs Enforcement (ICE)] John Morton. “Las pandillas prosperan en climas de violencia, una violencia que a menudo es alimentada por ganancias de sus actividades ilegales. Nuestro objetivo al ir detrás de estas pandillas callejeras peligrosas es desbaratar sus actividades delictivas y terminar desmantelando organizaciones completas”. ”

En la acusación de Washington de los miembros de la MS-13 (EE.UU. contra Carlos Silva, et al), los siete demandados agregados en la acusación formal sobreviviente son acusados de conspiración bajo la Ley de Organizaciones Corruptas e Influenciadas por la Delincuencia Organizada [Racketeer Influenced and Corrupt Organizations Act (RICO)] y otros delitos que incluyen dos asesinatos, robo a mano armada, abuso sexual con armas, secuestro y obstrucción de la justicia. La acusación formal alega que entre 2008 y 2010, miembros de la MS-13 enviaron dinero a líderes pandilleros en El Salvador y participaron en el apuñalamiento de miembros de pandillas rivales y secuestros, entre otros delitos.

La acusación formal de Houston (EE.UU. contra Jeffrey Juarez, et al) de los Tri-City Bombers acusa a 13 personas de conspirar para vender cocaína y éxtasis y de delitos relacionados con las armas de fuego. Las nueve acusaciones formales de Los Ángeles (EE.UU. contra Soto Martinez; EE.U. contra Castellon y Reynosa; y EE.UU. contra Bravo, EE.UU. contra Jaime Garcia; EE.UU. contra Moises Limon; EE.UU. contra Luis Rodriguez; EE.UU. contra Blanco y Avalos; EE.UU. contra Villa y Melena; EE.UU. contra Espinosa) relacionadas con la pandilla de Colonia Chiques en Oxnard, Calif., acusan a 12 miembros de traficar metanfetamina, cocaína crack y heroína. Otros miembros de Colonia Chiques han sido acusados en un tribunal estatal de California.

En la acusación formal de Kansas City (EE.UU. contra Kevin Darnell Bifford, et al), siete miembros de la pandilla Click Clack son acusados por sus papeles en una conspiración para distribuir cocaína crack y por poseer armas de fuego de manera ilegal. Según el expediente judicial, el nombre de la pandilla se debe al sonido que hace un revólver al cargarse o el sonido típico que hace una pistola semiautomática cuando se coloca un cartucho en la recámara. Durante la investigación, agentes de las fuerzas del orden público recuperaron más de 20 armas de fuego, así como también narcóticos y efectivo.

La acusación formal de Las Vegas (EE.UU. contra Jesus Guadalupe Felix Burgos, et al) acusa a dos pandilleros y terceros de conspirar para distribuir metanfetamina y de distribuir metanfetamina desde julio de 2009 hasta la actualidad.

Además de las acciones de coacción de hoy, durante los últimos ocho días, fiscales federales han acusado a 53 miembros de la pandilla 38th Street en Los Ángeles y tres miembros de los Crips, Bloods y Gangster Disciples en Memphis de delitos federales y también han agregado cargos en una acusación formal sobreviviente contra 12 miembros de la pandilla Blood en Bridgeport, Conn. En Boston, un miembro de la pandilla Fayston/Brunswick y un miembro de la MS-13 fueron acusados de delitos con armas de fuego y un miembro de la pandilla Mozart Street fue arrestado por un cargo de armas de fuego. Además, un miembro de la MS-13 fue arrestado en Alexandria, Va. por cargos federales.

Las acusaciones conllevan diversas penas máximas, que incluyen la cadena perpetua en algunos casos. Los cargos anunciados hoy son solo alegatos y los demandados son considerados inocentes hasta que se pruebe lo contrario en un tribunal de derecho.

Desde el 1 de febrero de 2011, también se han resuelto en tribunales acusaciones adicionales contra miembros de pandillas, entre ellas: declaraciones de culpabilidad el 1 y 2 de febrero de 2011 por parte de cuatro miembros de los Crips en Pittsburgh, Penn; una declaración de culpabilidad por parte de un miembro de los Bloods en Nashville, Tenn. el 8 de febrero de 2011; una declaración de culpabilidad por un líder de los Latin Kings el 3 de febrero de 2011 en Greenbelt, Md. ; y una sentencia de cadena perpetua contra un líder de la pandilla Grape Street Crips en Los Ángeles por condenas de tráfico de drogas. En San Francisco, dos miembros de la MS-13 fueron sentenciados el 8 de febrero de 2011 a 20 años de prisión cada uno por sus delitos relacionados con las pandillas. También el 8 de febrero de 2011, un miembro de la pandilla Montes Park fue sentenciado en Boston a 15 años de prisión por ser un delincuente en posesión de un arma de fuego. Por último, el 3 de febrero de 2011, un miembro de la pandilla Cathedral en Boston fue sentenciado a 21 meses de prisión por distribuir cocaína.

En total, 112 nuevos demandados han sido arrestados, acusados o sentenciados, o se han declarado culpables en febrero de 2011 como parte de las iniciativas en curso del departamento para luchar contra las pandillas y la violencia relacionada con ellas en los Estados Unidos.

La lucha contra las pandillas y la violencia relacionada con ellas es una de las principales prioridades del departamento. El Centro Nacional de Combate, Coacción y Coordinación contra Pandillas [National Gang Targeting, Enforcement & Coordination Center (GangTECC)] es una iniciativa multiagencia creada para unificar el trabajo federal para afectar y desmantelar las pandillas más importantes y violentas de los Estados Unidos a través de la coordinación de casos y la inteligencia estratégica. Gang TECC, en asociación con la División de Operaciones Especiales, brindó apoyo para realizar el anuncio de hoy.

Además de enjuiciar a miembros de pandillas y sus asociados por sus supuestos delitos, el departamento trabaja para promover iniciativas y programas de prevención de pandillas y violencia juvenil en las comunidades. Programas como el Proyecto Vecindarios Seguros - un programa entre Fiscalías Federales de todo el país - también trabajan para reducir los delitos violentos combinando iniciativas de vigilancia comunitaria, enjuiciamiento estratégico e iniciativas contra la delincuencia con los recursos de proveedores de servicios sociales, sistemas educativos y fundaciones de caridad.

El departamento también trabaja para reducir la exposición infantil a la violencia y generar conciencia sobre sus ramificaciones mientras fomenta la comprensión de sus causas y características y contrarresta su impacto negativo. Además, el Grupo de Trabajo de Sentencias y Correcciones está revisando las prácticas federales de emisión de sentencias y determinando una mejor manera de preparar a los presos federales para la transición de regreso a sus comunidades. El Secretario de Justicia de los Estados Unidos Eric Holder convocó a la reunión inaugural del “Consejo de Reinserción” del nivel del Gabinete en Washington para identificar y promover estrategias eficaces de seguridad pública y reinserción de presos en la sociedad.

Además, la División de lo Penal ha anunciado iniciativas para fusionar su Unidad Antipandillas y su Sección de Delito Organizado y Asociación Ilícita, con lo que reúne a un grupo elite de fiscales con amplios conocimientos y gran experiencia en el combate de grupos delictivos.

Los demandados acusados serán enjuiciados por Fiscales Federales Auxiliares de cada uno de los respectivos distritos en los que se realizaron las acusaciones de los casos. Los casos entablados en Washington; Greenbelt, Md. ; Nashville, Pittsburgh y San Francisco también son enjuiciados por abogados litigantes de la Unidad Antipandillas de la División de lo Penal.

Los casos fueron investigados por las diversas oficinas locales del FBI, el ATF e Investigaciones de Seguridad del ICE, así como también por diversos asociados federales, estatales y locales.

Se puede obtener una copia del informe del departamento sobre la exposición infantil a la violencia en: www.ojp.usdoj.gov/newsroom/pressreleases/2009/ojjdp09162.htm

WASHINGTON – Forty-one members of various street gangs have been charged in indictments or criminal complaints unsealed today in five judicial districts, the Department of Justice announced today.

 

The federal indictments and complaints unsealed today charge members and associates of a variety of street gangs, including:

 

·                      Seven members of the Click Clack gang in Kansas City, Mo;

·                      12 Colonias Chiques gang members in Los Angeles;

·                      Two members and associates of the Sureno13 and San Chucos gangs in Las Vegas;

·                      Seven MS-13 members in Washington;

·                      13 Tri-City Bomber members and associates in the McAllen, Texas, area.

 

The charges in these separate cases relate to a wide range of alleged illegal activity, including racketeering conspiracy, murder, murder conspiracy, narcotics trafficking, robbery and gun trafficking. The defendants will make initial court appearances in the respective districts in which they are charged. Teams of federal, state and local law enforcement officers have today arrested 29 of these defendants, with additional arrests expected.

 

“Gangs threaten the safety and stability of neighborhoods across our nation,” said Assistant Attorney General Lanny A. Breuer of the Criminal Division.  “Gangs spread fear in our communities, trading in guns, drugs, and violence, and they cause too many young people to choose lives of crime.  The Justice Department is fighting back, against both local street gangs and large organized criminal enterprises with international reach.  With the coordinated enforcement actions announced today, we are sending an unmistakable message -- that we are committed to dismantling gangs both large and small, and from coast to coast.” 

 

“Although these cases are in different parts of the country, they illustrate the common threats gang members pose to our communities,” said Assistant Director Kevin Perkins of the FBI’s Criminal Investigative Division. “Gangs were once found in big cities, but their operations are now migrating to rural areas. The types of offenses gang members commit are also changing, from drug running and petty crimes to home invasions and health care fraud. The FBI will use our task forces, undercover operations, and enhanced surveillance techniques to dismantle gangs to restore order to neighborhoods they terrorize.”

 

“Firearms trafficking and gang-related violent crime go hand in hand.  Guns are the tools of the trade to intimidate and murder innocent citizens and rivals,” said Bureau of Alcohol, Tobacco, Firearms and Explosives ( ATF) Acting Director Kenneth Melson. “Enforcement initiatives like today’s place an emphasis on ending gang violence that erodes the quality of life in neighborhoods by putting criminal offenders behind bars for a long time.”

 

“ICE’s work continues to have a significant impact on some of the most ruthless gangs in the country,” said Immigration and Customs Enforcement (ICE) Director John Morton. “Gangs thrive on violence, violence that is often fueled by profits from their illegal activities. Our goal in targeting these dangerous street gangs is to disrupt their criminal activities and ultimately to dismantle entire organizations.”

 

In the Washington indictment of MS-13 members (U.S. v. Carlos Silva, et al) the seven defendants added in the superseding indictment are charged with RICO conspiracy and other offenses including two murders, armed robbery, sexual abuse while armed, kidnapping and obstructing justice. The indictment alleges that between 2008 and 2010, MS-13 members sent money to gang leaders in El Salvador , as well as participated in the stabbing of rival gang members and kidnapping, among other crimes.

 

The Houston indictment (U.S. v. Jeffrey Juarez, et al) of the Tri-City Bombers charges 13 individuals with conspiring to sell cocaine and ecstasy and with firearm-related offenses. The nine Los Angeles indictments (U.S. v. Soto Martinez; U.S. v. Castellon and Reynosa; and U.S. v. Bravo, U.S. v. Jaime Garcia; U.S. v. Moises Limon; U.S. v. Luis Rodriguez; U.S. v. Blanco and Avalos; U.S. v. Villa and Melena; U.S. v. Espinosa) involving the Colonia Chiques gang in Oxnard, Calif., charge 12 members with trafficking methamphetamine, crack cocaine and heroin. Additional Colonia Chiques members have been charged in California state court.

 

In the Kansas City indictment (U.S. v. Kevion Darnell Bifford, et al) seven members of the Click Clack gang are charged for their roles in a conspiracy to distribute crack cocaine and for illegally possessing firearms. According to court documents, the gang derives its name from the sound of cocking a gun or “racking the slide” (putting a round into the chamber) of a semi-automatic handgun. During the investigation, law enforcement officers recovered more than 20 firearms, as well as narcotics and cash.

The Las Vegas indictment (U.S. v. Jesus Guadalupe Felix Burgos, et al) charges two gang members and others with conspiracy to distribute methamphetamine and distribution of methamphetamine from July 2009 to the present.

 

In addition to today’s enforcement actions, during the past eight days federal prosecutors have charged 53 members of the 38th Street gang in Los Angeles, and three members of the Crips, Bloods and Gangster Disciples in Memphis with federal crimes, as well as added charges in a superseding indictment against 12 Blood gang members in Bridgeport, Conn. In Boston, a Fayston/Brunswick gang member and an MS-13 member each were charged with firearms offenses, and a Mozart Street gang member was arrested on a firearms charge. In addition, an MS-13 member was arrested in Alexandria, Va., on federal charges.

 

The charges carry a variety of maximum penalties, including up to life in prison on certain charges. The charges announced today are merely allegations, and defendants are presumed innocent unless proven guilty in a court of law.

 

Since Feb. 1, 2011, additional charges against gang members have also been resolved in court, including: guilty pleas on Feb. 1 and 2, 2011, by four Crips members in Pittsburgh, Penn; a guilty plea by a Bloods member in Nashville, Tenn., on Feb. 8, 2011; a guilty plea by a Latin Kings leader on Feb. 3, 2011, in Greenbelt, Md.; and a life prison sentence imposed on a Grape Street Crips gang leader in Los Angeles for drug trafficking convictions. In San Francisco, two MS-13 members each were sentenced on Feb. 8, 2011, to 20 years in prison for their gang-related crimes. Also on Feb. 8, 2011, a Montes Park gang member was sentenced in Boston to 15 years in prison for being a felon in possession of a firearm. Finally, on Feb. 3, 2011, a Cathedral gang member in Boston was sentenced to 21 months in prison for cocaine distribution.

 

In total, 112 new defendants have been arrested, charged, pleaded guilty or been sentenced in February 2011 as part of the department’s ongoing efforts to combat gangs and gang-related violence in the United States.

 

Addressing gangs and gang-related violence is one of the department’s top priorities. The National Gang Targeting, Enforcement & Coordination Center or GangTECC, is a multi-agency effort designed to unify federal efforts to disrupt and dismantle the most significant and violent gangs in the United States through case coordination and strategic intelligence. GangTECC, in partnership with the Special Operations Division, provided support for today’s announcement.

 

In addition to prosecuting gang members and associates for their alleged crimes, the department works to promote gang and youth violence prevention efforts and programs in communities. Programs like Project Safe Neighborhood – a program among U.S. Attorneys’ Offices throughout the country – also work to reduce violent crime by combining community-based policing, strategic prosecution and anti-crime initiatives with the resources of social service providers, educational systems and charitable foundations.

 

The department is also working to reduce childhood exposure to violence and raise awareness of its ramifications, while also advancing understandings of its causes and characteristics and countering its negative impact. In addition, the Sentencing and Corrections Working Group is reviewing federal sentencing practices and determine how to better prepare federal prisoners to transition back into their communities. Attorney General Eric Holder also recently convened the inaugural meeting of the Cabinet-level “Reentry Council” in Washington to identify and to advance effective public safety and prisoner reentry strategies.

In addition, the Criminal Division has announced efforts to merge its Gang Unit and Organized Crime and Racketeering Section, bringing together an elite group of prosecutors with extensive knowledge and experience in combating criminal groups.

 

The charged defendants will be prosecuted by Assistant U.S. Attorneys from each of the respective districts in which the cases were brought. The cases charged in Washington; Greenbelt, Md.; Nashville, Pittsburgh and San Francisco are also being prosecuted by trial attorneys from the Criminal Division’s Gang Unit.

 

The cases were variously investigated by the numerous field offices of the FBI, ATF, and ICE Homeland Security Investigations, as well as numerous additional federal, state and local partners.

 

A copy of the department’s survey on children’s exposure to violence can be found at: www.ojp.usdoj.gov/newsroom/pressreleases/2009/ojjdp09162.htm

WASHINGTON – Iheanyi Frank Chinasa, 39, of Gaithersburg, Md., was convicted yesterday by a federal jury in Richmond, Va., of multiple fraud charges and obstruction of an official proceeding related to his participation in a scheme to defraud Cisco Systems Inc., announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Neil H. MacBride of the Eastern District of Virginia and Michael Morehart, Special Agent in Charge of the FBI Richmond Field Office.

 

Chinasa was convicted of one count of conspiracy to commit mail and wire fraud, eight counts of mail fraud, one count of wire fraud and one count of obstruction of an official proceeding. Chinasa is scheduled to be sentenced by Chief U.S. District Judge James R. Spencer on May 5, 2011. He faces a maximum penalty of 20 years in prison and a $250,000 fine for each count.

 

Chinasa was charged in a superseding indictment filed on Aug. 18, 2010. Robert Kendrick Chambliss, 31, of Henrico, Va., was also charged in the indictment and pleaded guilty prior to trial to conspiring to commit mail fraud and wire fraud.

 

According to court records and evidence at trial, Chinasa and Chambliss engaged in a scheme to defraud Cisco Systems Inc.  As part of the scheme, Chinasa manufactured counterfeit computer networking and telecommunications equipment.  Chinasa and Chambliss then contacted Cisco, falsely claiming that they were having trouble with a Cisco product covered by a warranty.  Cisco would issue replacement parts, but its warranty required return of the allegedly defective product.  Chinasa and Chambliss would send counterfeit product to Cisco to satisfy the return policy.        

 

This case was investigated by the FBI.  Assistant U.S. Attorney Michael C. Moore of the Eastern District of Virginia and Trial Attorney Kevin B. Muhlendorf of the Criminal Division’s Fraud Section are prosecuting the case.

WASHINGTON – A settlement agreement with the Carson City School District in Nevada has been reached to ensure that all English Language Learner (ELL) students receive sufficient services as required by federal law, the Justice Department announced today.

With the district’s cooperation, the department conducted an extensive examination of the district’s ELL program, and conducted a site visit of each of the district’s schools to determine whether ELL students were receiving adequate services as required by the Equal Educational Opportunities Act of 1974.

Almost 20 percent of the district’s students have been identified as ELL students, and the Justice Department’s compliance review revealed that many of these students were not receiving any ELL services and others were receiving insufficient services. The four-year settlement agreement will ensure that they receive appropriate ELL services by qualified instructors. Under the agreement, all ELL students will receive English as a Second Language and sheltered content instruction by teachers who are adequately trained to provide this instruction, and those teachers will be assigned to classes to ensure that all ELL students receive sufficient services. The district will dedicate funding, resources and time through the end of the 2011-12 school year toward professional development to ensure that a sufficient number of teachers are trained to adequately serve its ELL population.

The district also has agreed to adopt policies to actively monitor the academic performance of current and former ELL students. With respect to special education ELL students, the district will modify its policies to ensure that they are properly assessed and served to address their unique needs. In addition, the district will conduct a comprehensive review of its ELL materials to ensure their adequacy, and it will provide translation and interpreter services to the parents of ELL students.

"Students who are not proficient in English are entitled to language acquisition services that ensure their equal and meaningful participation in educational programs," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "We applaud the Carson City School District’s decision to enter into this agreement. The Department of Justice will continue to work with the district to ensure that all of its English Language Learners are provided the services they need to overcome language barriers and fully participate in the district’s educational programs."

The enforcement of the Equal Educational Opportunities Act is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt .

WASHINGTON - Five individuals and a Nashville, Tenn., firearms manufacturer have been indicted by a federal grand jury on charges relating to international firearms and trafficking violations of the Arms Export Control Act (AECA), announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Jerry E. Martin for the Middle District of Tennessee; Special Agent in Charge Glenn N. Anderson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division; and Special Agent in Charge Raymond R. Parmer Jr. for Homeland Security Investigations’ (HSI) New Orleans Office. 

 

The defendants named in the 21-count indictment unsealed today are Guy Savage, 42, a citizen of the United Kingdom; Sabre Defence Industries LLC (SDI-US), a Nashville-based arms manufacturer owned by Savage; Charles Shearon, 55, of Ashland City, Tenn., and president of SDI-US; Elmer Hill, 64, of Brentwood, Tenn., and chief financial officer of SDI-US; Michael Curlett, 44, of Hermitage, Tenn., and director of sales for SDI-US; and Arnold See Jr., 54, of Antioch, Tenn., who is the international shipping and purchasing manager of SDI-US. According to the indictment, the defendants were part of a conspiracy to illegally import and export regulated firearms and firearm components and technology to and from the United States. The indictment alleges that Savage directed the illegal activities from his personal residences in the United Kingdom, as well as from a related company owned by Savage, Sabre Defence Industries LTD (SDI-UK), which is a licensed manufacturer, distributor and importer of firearms and firearms headquartered in the United Kingdom. 

 

“The indictment unsealed today alleges a nearly decade-long scheme to thwart U.S. import/export restrictions on firearms and their components,” said Assistant Attorney General Breuer.  “The defendants allegedly went to great lengths to conceal their activities and evade U.S. laws – mislabeling packages, falsifying shipping records, and maintaining a fictitious set of books and records, among other things.  The illegal trade of firearms and their components poses serious risks and, as this case shows, we cannot and will not tolerate it.”

“The investigation and indictment are an excellent example of how the United States Attorney’s Office, the Criminal Division, HSI, ATF and international law enforcement agencies are working together to prevent firearms and firearm components from being diverted to locations around the world,” said U.S. Attorney Martin. “We recognize the role that weapons play in a sometimes violent world and we will vigorously enforce the laws to prevent the illegal importation of firearms and firearm components.”

The indictment alleges that each of the defendants conspired to intentionally violate the AECA by causing firearms components, which are listed as defense articles on the U.S. Munitions List (USML), to be exported from the United States to an international location without first obtaining a license or written authorization for such export from the Directorate of Defense Trade Controls (DDTC) of the U.S. Department of State. According to the indictment, the export of defense articles, such as firearms, firearms components or other military items on the USML are strictly controlled by the AECA and regulations, known as the International Trafficking in Arms Regulations (ITAR). The indictment alleges that the defendants had been engaged in the illegal import and export activities since at least 2003. The indictment references specific shipping documents and internal e-mail communications in which the defendants and others, including SDI-US and SDI-UK employees, conspired to illegally avoid U.S. import and export laws and regulations in order to smuggle firearm components into and from the United States by falsifying shipping records, concealing unlicensed firearms components in false bottoms of shipping cartons, and mislabeling and undervaluing shipments of firearm components to avoid scrutiny by U.S. Customs and Border Control Officers.

 

The indictment also alleges that, to accomplish their illegal activities, the defendants, along with other conspirators, used e-mail accounts and other forms of communication to communicate with each other and with other individuals located in the United States, the United Kingdom and elsewhere. According to the indictment, Savage allegedly repeatedly urged the other defendants and SDI-US employees to ship firearms components located in the United States to SDI-UK, without first obtaining an export license or permission. In addition, Savage allegedly specifically directed the employees of SDI-US to mislabel and undervalue export shipments of firearms components from the United States to SDI-UK, in order to evade the prohibitions and licensing requirements of AECA and the ITAR.

 

In addition, according to the indictment, the defendants used international common carriers to ship restricted defense items to and from the United States, and sought to conceal their activities by maintaining two sets of business books to record the company’s accounts and balances, and its export and import activities. The indictment alleges that one set of books recorded the true transactions by SDI-US, and a second set recorded the undervalued amounts used on shipping manifests in an effort to circumvent U.S. export licensing requirements.

“HSI is committed to bringing to justice any person or organization willing to circumvent the laws of the United States,” said Special Agent in Charge Parmer of HSI in New Orleans.  “The illegal import, export, and domestic sale or transfer of firearms, firearm parts, and technical data is controlled for good reason; in the wrong hands, these items could be used to harm America or its allies. Enforcing U.S. export laws is one of HSI’s top priorities and we will continue to work with our law enforcement and industry partners to ensure that those who put our country at risk face appropriate consequences.”

 

“The indictment and lengthy law enforcement activities in Tennessee, England and elsewhere send a clear message. ATF and our law enforcement partners will not stand for those accused of conspiring to violate the federal firearms laws and illegally importing/exporting weapons, components and other items of their choice,” said ATF Special Agent in Charge Glenn Anderson. “The risk is too great. Crime and the potential for violence around any corner knows no border or boundary. Today, two countries and countless neighborhoods, both foreign and domestic, are much better off.”

 

Savage was arrested today in the United Kingdom by the London Metropolitan Police Service, based on the United States’ request for his extradition. The remaining defendants will be issued a summons to appear in U.S. District Court in Nashville.

 

Each count of violating the AECA carries a maximum penalty of 20 years in prison and a $1 million fine. The conspiracy and making false statements charges each carry a maximum penalty of five years in prison and a $250,000 fine.  The maximum penalty, if convicted of wire and mail fraud, is 20 years in prison and a $250,000 fine for each count. Finally, the smuggling goods from the United States charge carries a maximum penalty of 10 years in prison and a $250,000 fine.

 

The indictment was the result of an investigation conducted by HSI and ATF, with assistance from the London Metropolitan Police Service, International Assistance Unit.

 

The case is being prosecuted by Assistant U.S. Attorney John K. Webb of the Middle District of Tennessee and Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Racketeering Section. Additional assistance was provided by the Criminal Division’s Office of International Affairs and the National Security Division. 

An indictment is merely an accusation and each defendant is presumed innocent until and unless they are proven guilty.

WASHINGTON — Two Iowa ready-mix concrete executives were sentenced to serve jail time and pay criminal fines for their participation in separate conspiracies to fix prices and rig bids for sales of ready-mix concrete, the Department of Justice announced today.

Steven Keith VandeBrake, the former sales manager of an Iowa ready-mix concrete company, was sentenced by U.S. District Court Judge Mark Bennett to serve 48 months in prison and to pay a $829,715.85 criminal fine for his participation in three separate conspiracies with three different companies involving agreements to fix prices and/or to rig bids for ready-mix concrete sold in Iowa. VandeBrake pleaded guilty on May 4, 2010, to the three-count felony charge filed in U.S. District Court in Sioux City, Iowa.

Additionally, Kent Robert Stewart, the president of another Iowa ready-mix concrete company, was sentenced by Judge Bennett to serve a year and a day in prison and to pay a $83,427.09 criminal fine for his role in conspiring with VandeBrake to fix prices and rig bids for the sale of ready-mix concrete sold in Iowa. Stewart pleaded guilty on May 24, 2010, to the one-count felony charge filed in U.S. District Court in Sioux City.

Ready-mix concrete is a product whose ingredients include cement, aggregate (sand and gravel), water and other additives. The concrete generally is produced in a concrete plant and is transported to work sites by concrete-mixer trucks where it is used in various types of construction projects, including buildings and roads.

Today’s sentencings are the result of an ongoing federal antitrust investigation of the ready-mix concrete industry in Iowa and its surrounding states. The investigation is being conducted by the Antitrust Division’s Chicago Field Office, the FBI’s Sioux City Resident Agency and the Department of Transportation’s Office of the Inspector General, with the assistance of the U.S. Attorney’s Office in Sioux City.

As a result of the investigation, three current or former ready-mix concrete executives, including VandeBrake and Stewart, have pleaded guilty. Chad Van Zee, the president of another Iowa ready-mix concrete company, pleaded guilty to a one-count felony charge on Dec. 6, 2010. According to court documents, Van Zee participated in a conspiracy with VandeBrake to fix prices of ready-mix concrete sold in Iowa. Van Zee is awaiting sentencing.

Anyone with information concerning bid rigging, price fixing or territorial allocation related to the ready-mix concrete industry in Iowa and its surrounding states should contact the Antitrust Division’s Chicago Field Office at 312-353-7530 or visit www.justice.gov/atr/contact/newcase.htm.

WASHINGTON – An executive of a U.S. distributor has agreed to plead guilty and serve jail time for his participation in a global conspiracy to fix the prices of aftermarket auto lights, the Department of Justice announced today. This is the first charge in the department’s ongoing investigation into the aftermarket auto lights industry. Aftermarket auto lights are incorporated into an automobile after its original sale, often as repairs following a collision or as accessories and upgrades.

According to the one-count felony charge filed today in U.S. District Court in San Francisco, Polo Shu-Sheng Hsu conspired with others to suppress and eliminate competition by fixing the prices of aftermarket auto lights. Hsu, a former president and chief executive officer of a U.S. distributor for a Taiwan producer of aftermarket auto lights, participated in the conspiracy from on or about April 2000 to on or about Sept. 3, 2008.

According to the charge, Hsu and co-conspirators participated in a conspiracy in which the participants met and agreed to charge prices of aftermarket auto lights at certain predetermined levels. The participants in the conspiracy issued price announcements and price lists in accordance with the agreements reached, and collected and exchanged information on prices and sales of aftermarket auto lights for the purpose of monitoring and enforcing adherence to the agreed-upon prices. The department charged that the conspirators met in Taiwan, the United States and elsewhere for their discussions.

Under his plea agreement, which is subject to court approval, Hsu has agreed to serve six months in jail, to pay a $25,000 criminal fine and to assist the department in its ongoing investigation into the aftermarket auto lights industry.

Hsu is charged with violating the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims, if either of those amounts is greater than the statutory maximum fine.

This case is part of an ongoing joint investigation of the Department of Justice Antitrust Division’s San Francisco Office and the FBI in San Francisco. Anyone with information concerning illegal or anticompetitive conduct in the aftermarket auto lights industry is urged to call the Antitrust Division’s San Francisco Field Office at 415-436-6660 or visit www.justice.gov/atr/contact/newcase.htm.

WASHINGTON - Se ha llegado a un acuerdo conciliatorio con el Distrito Escolar de Carson City en Nevada para garantizar que todos los estudiantes Aprendices del Idioma Inglés [English Language Learner (ELL)] reciban servicios suficientes, como lo exige la ley federal, anunció hoy el Departamento de Justicia.

Con la cooperación del distrito, el departamento realizó un análisis exhaustivo del programa de ELL del distrito y visitó cada una de las escuelas del distrito para determinar si los estudiantes ELL estaban recibiendo servicios adecuados según lo establecido por la Ley de Igualdad de Oportunidades Educativas de 1974.

Casi el 20 por ciento de los estudiantes del distrito han sido identificados como estudiantes ELL, y la revisión de cumplimiento del Departamento de Justicia reveló que muchos de estos estudiantes no estaban recibiendo ningún servicio de ELL y otros recibían servicios insuficientes. El acuerdo conciliatorio de cuatro años garantizará que reciban servicios adecuados de ELL por parte de instructores calificados. Bajo el acuerdo, todos los estudiantes ELL recibirán instrucción de Inglés como Segundo Idioma y enseñanza integrada por parte de maestros capacitados para brindar este tipo de instrucción, que serán asignados a las clases para garantizar que todos los estudiantes ELL reciban servicios suficientes. El distrito dedicará fondos, recursos y tiempo al desarrollo profesional hasta fines del año lectivo 2011-12 para asegurar que un número suficiente de maestros esté capacitado para servir adecuadamente a su población de ELL.

El distrito ha aceptado adoptar políticas para monitorear activamente el desempeño académico de estudiantes ELL actuales y pasados. En cuanto a estudiantes ELL con educación especial, el distrito modificará sus políticas para asegurarse de que sean evaluados correctamente y atendidos para satisfacer sus necesidades específicas. Además, el distrito realizará una revisión integral de sus materiales para ELL para asegurarse de que sean adecuados y ofrecerá servicios de traducción e interpretación a los padres de estudiantes ELL.

"Los estudiantes que no dominan el inglés tienen derecho a servicios de adquisición de la lengua que garanticen una participación equitativa y significativa en programas educativos", dijo Thomas E. Perez, Secretario de Justicia Auxiliar de la División de Derechos Civiles. "Celebramos la decisión del Distrito Escolar de Carson City de firmar este acuerdo. El Departamento de Justicia seguirá trabajando con el distrito para asegurarse de que todos sus estudiantes Aprendices del Idioma Inglés reciban los servicios que necesitan para superar barreras idiomáticas y participar plenamente en los programas educativos del distrito".

Hacer valer la Ley de Igualdad de Oportunidades Educativas es una de las principales prioridades de la División de Derechos Civiles del Departamento de Justicia. Para obtener información adicional sobre la División de Derechos Civiles, visite su portal en www.justice.gov/crt.

WASHINGTON – A federal jury in Baton Rouge, La., today convicted a former research scientist of stealing trade secrets from Dow Chemical Company and selling them to companies in the People’s Republic of China, as well as committing perjury, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Donald J. Cazayoux Jr. for the Middle District of Louisiana.  

 

            After a three-week trial, the jury found Wen Chyu Liu, aka David W. Liou, 74, of Houston, guilty of one count of conspiracy to commit trade secret theft and one count of perjury.

 

            According to the evidence presented in court, Liou came to the United States from China for graduate work. He began working for Dow in 1965 and retired in 1992.  Dow is a leading producer of the elastomeric polymer, chlorinated polyethylene (CPE).  Dow’s Tyrin CPE is used in a number of applications worldwide, such as automotive and industrial hoses, electrical cable jackets and vinyl siding. 

 

While employed at Dow, Liou worked as a research scientist at the company’s Plaquemine, La., facility on various aspects of the development and manufacture of Dow elastomers, including Tyrin CPE.  Liou had access to trade secrets and confidential and proprietary information pertaining to Dow’s Tyrin CPE process and product technology.  The evidence at trial established that Liou conspired with at least four current and former employees of Dow’s facilities in Plaquemine and Stade, Germany, who had worked in Tyrin CPE production, to misappropriate those trade secrets in an effort to develop and market CPE process design packages to various Chinese companies. 

 

Liou traveled extensively throughout China to market the stolen information, and evidence introduced at trial showed that he paid current and former Dow employees for Dow’s CPE-related material and information. In one instance, Liou bribed a then-employee at the Plaquemine facility with $50,000 in cash to provide Dow’s process manual and other CPE-related information.

 

“Today a federal jury found Mr. Liou guilty of stealing protected trade secrets from Dow Chemical Company, including by bribing fellow employees for this valuable information,” said Assistant Attorney General Breuer. “American industries thrive on innovation and they invest substantial resources in developing new products and technology.  We will not allow individuals to steal the technology and products that U.S. companies have invested years of time and considerable money  to create.”

 

“This office will continue to pursue sophisticated and complex schemes, such as the one perpetrated by this defendant,” said U.S. Attorney Cazayoux. “Such actions undermine the economic viability of our community and our nation, and will not be tolerated.”

 

“Companies within the United States lose millions of dollars to the theft of trade secrets such as this,” said Special Agent-in-Charge David Welker of the FBI’s New Orleans Division. “The FBI is committed to aggressively identifying and investigating such schemes and along with our partners to bring the perpetrators to justice.”

 

In addition, according to evidence presented at trial related to the perjury charge, Liou falsely denied during a deposition that he made arrangements for a co-conspirator to travel to China to meet with representatives of a Chinese company interested in designing and building a new CPE plant.  Liou was under oath at the time of the deposition, which was part of a federal civil suit brought by Dow against Liou.

 

Liou faces a maximum of 10 years in prison on the conspiracy to commit trade secrets theft charge, and a maximum of five years in prison on the perjury charge. Each count also carries a maximum fine of $250,000. A sentencing date has not yet been scheduled.

       

            The case is being prosecuted by Assistant U.S. Attorney Corey R. Amundson, who serves as the Senior Deputy Criminal Chief, and Assistant U.S. Attorney Ian F. Hipwell for the Middle District of Louisiana, as well as Trial Attorney Kendra Ervin of the Criminal Division’s Computer Crime and Intellectual Property Section.  The case was investigated by the FBI’s New Orleans Division.

WASHINGTON – A federal court in Denver has permanently barred Curtis L. Morris of Elizabeth, Colo., from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order, entered by Chief U.S. District Judge Wiley Y. Daniel, approves a magistrate judge’s decision that found that Morris, who operates a business called Numbers & Beyond, prepares federal tax returns claiming large, fraudulent tax refunds.

The court found that Morris prepares various false Internal Revenue Service (IRS) forms, such as Form 1099-OID, to request fraudulent refunds based on phony claims of large income tax withholding. The court order says the scheme is rooted in the long-discredited "redemption" theory which, according to its proponents, allows taxpayers to access secret Treasury accounts to satisfy their tax liabilities. According to the court, proponents of the frivolous scheme claim that phony IRS forms can be used to access these fictitious Treasury accounts. The court found that Morris made fraudulent refund claims exceeding $56 million.

Return preparer fraud and bogus refund claims based on false Forms 1099-OID are two of the IRS’ "Dirty Dozen" tax scams. In the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions against tax-fraud promoters and dishonest tax return preparers. Information about these cases is available at www.justice.gov/tax/TEN.htm.

WASHINGTON - Ocho enfermeros del área de Miami fueron sentenciados a prisión hoy por sus papeles en un ardid de fraude de Medicare de 18.7 millones de dólares asociados a atención médica domiciliaria, anunciaron los Departamento de Justicia y de Servicios Humanos.

Los ocho individuos se habían declarado culpables anteriormente de un cargo de conspiración para cometer fraude de atención médica y fueron sentenciados por la Juez Federal de distrito Ursula Ungaro en Miami, según se detalla a continuación:

• Diana Sanabia, 36, enfermera registrada (R.N., por sus siglas en inglés), fue sentenciada a 30 meses en prisión, tres años de libertad bajo supervisión y el pago de 594,000 dólares en restitución;
• Daisy Santos, 43, enfermera registrada (R.N., por sus siglas en inglés), fue sentenciada a 30 meses en prisión, tres años de libertad bajo supervisión y el pago de 699,000 dólares en restitución;
• Roberto Rodriguez, 44, enfermero registrada (R.N., por sus siglas en inglés), fue sentenciado a 30 meses en prisión, tres años de libertad bajo supervisión y el pago de 603,900 dólares en restitución;
• Marlene Magadan, 36, enfermera registrada (R.N., por sus siglas en inglés), fue sentenciada a 24 meses en prisión, tres años de libertad bajo supervisión y el pago de 334,200 dólares en restitución;
• Maria Perez, 49, enfermera registrada (R.N., por sus siglas en inglés), fue sentenciada a 18 meses en prisión, tres años de libertad bajo supervisión y el pago de 180,600 dólares en restitución;
• Alberto Alvarez, 55, enfermero registrada (R.N., por sus siglas en inglés), fue sentenciado a 15 meses en prisión, tres años de libertad bajo supervisión y el pago de 101,800 dólares en restitución;
• Yanisley Chao, 32, enfermeira prática autorizada (L.P.N., por sus siglas en inglés), fue sentenciada a 5 meses en prisión, dos años de libertad bajo supervisión y el pago de 66,800 dólares en restitución;
• Leonardo Malagon, 40, enfermeiro prático autorizado (L.P.N., por sus siglas en inglés), fue sentenciado a 5 meses en prisión, dos años de libertad bajo supervisión y el pago de 65,900 dólares en restitución.

Los enfermeros fueron originalmente acusados en acusación formal en julio de 2010. El Dr. Jorge Dieppa, también acusados en la acusación formal de julio de 2010 espera su enjuiciamiento por un cargo de conspiración para cometer fraude de atención médica y un cargo de realización de declaraciones falsas asociadas a derechos de beneficios y pago por Medicare. La acusación formal también pide confiscación.

De acuerdo con el expediente judicial, las agencias de atención médica con sede en Miami ABC Home Health Inc. y Florida Home Health Care Providers Inc. pertenecían a los coconspiradores. Tanto ABC como Florida Home Health alegaban proveer servicios de atención médica domiciliaria y terapia a beneficiarios de Medicare. En particular, ABC y Florida Home Health remitían a beneficiaros de Medicare a Dieppa para que obtuvieran recetas, certificaciones médicas y planes de cuidado para terapia y servicos médicos domiciliarios en ABC y Florida Home Health. Como resultado, se le facturaron a Medicare aproximadamente 18.7 millones de dólares por servicios que eran médicamente innecesarios y/o nunca fueron provistos.

De acuerdo con los documentos de declaración de culpabilidad, Perez y Chao trabajaban para Florida Home Health; Santos, Magadan y Malagon trabajaban para ABC; y Sanabia, Rodriguez y Alvarez trabajaban tanto para ABC como Florida Home Health. Estos demandados falsificaron expedientes de pacientes para beneficiarios de Medicare para que pareciera que los beneficiarios reunían los requisitos para servicios de Florida Home Health o ABC recetados por Dieppa. De hecho, los demandados sabían que los servicios no eran médicamente necesarios y/o no fueron prestados.

De acuerdo con los documentos de declaración de culpabilidad, Sanabia y Santos también reclutaron a beneficiarios de Medicare para agencias y recibieron comisiones ilícitas por los reclutamientos. Sanabia y Santos sabían que los beneficiaros que reclutaban no reunían los requisitos para servicios médicos domiciliarios por los que ABC y Florida Home Health facturaban a Medicare.

El codemandado Alfredo Zayas, 76, un beneficiario de Medicare que se declaró culpable de un cargo de conspiración para cometer fraude de atención médica, también fue sentenciado hoy por la Juez Ungaro a dos años de libertad condicional. De acuerdo con el expediente judicial, Zayas, un beneficiario, solicitó y aceptó comisiones ilícitas y sobornos por permitir que se usara su número de Medicare para facturar a Medicare por tratamientos médicos domiciliarios innecesarios.

Sanabia, Santos, Magadan, Perez, Rodriguez, Alvarez, Chao, Malagon y Zayas fueron responsables por facturar a Medicare fraudulentamente las siguientes sumas aproximadas, respectivamente: $594,000, $699,000, $381,100, $180,600, $603,900, $101,800, $66,800, $65,900 y $23,800.

Las sentencias fueron anunciadas por el Secretario de Justicia Auxiliar Lanny A. Breuer de la División de lo Penal; el Fiscal Federal Wifredo A. Ferrer del Distrito Sur de Florida; John V. Gillies , Agente Especial a Cargo de la Oficina Local de Miami del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)]; y el Agente Especial a Cargo Christopher Dennis de la Oficina de Investigaciones de Miami de la Oficina del Inspector General [Office of the Inspector General (OIG)] del HHS.

Está a cargo de la acusación en el caso el Abogado Litigante Joseph S. Beemsterboer de la Sección de Fraude de la División de lo Penal. El caso fue investigado por el FBI y HHS-OIG, y se inició como parte de la Fuerza de Ataque al Fraude contra Medicare, supervisada por la Sección de Fraude de la División de lo Penal y la Fiscalía Federal para el Distrito Sur de Miami.

Desde su creación en marzo de 2007, las operaciones de la Fuerza de Ataque al Fraude contra Medicare en siete distritos obtuvieron las acusaciones formales de más de 850 individuos que, en conjunto, facturaron falsamente al programa Medicare más de 2.1 mil millones de dólares. Además, los Centros para Servicios de Medicare y Medicaid del HHS, trabajando en conjunto con la HHS-OIG, están tomando medidas para aumentar la responsabilización y reducir la presencia de proveedores fraudulentos.

Para obtener más información sobre el Equipo de Prevención de Fraude de Atención Médica y Acción de Coacción [Healthcare Fraud Prevention and Enforcement Action Team (HEAT)], visite: www.stopmedicarefraud.gov .

WASHINGTON– A settlement agreement has been reached with the Franklin County Sheriff’s Office in Columbus, Ohio, over the use of Conducted Energy Devices (CEDs), or electrically charged weapons commonly referred to by the brand name "TASER," in its two jails, the Franklin County Corrections Centers, the Department of Justice announced today. The settlement was filed as a joint motion in the U.S. District Court for the Southern District of Ohio.

On Nov. 3, 2010, the United States filed a motion to intervene in a case alleging that the Franklin County Sheriff’s Office engaged in a policy and practice of excessive and abusive use of CEDs against detainees and inmates. The case, which is represented by the Ohio Legal Rights Service, Ohio’s protection and advocacy system for people with disabilities, includes "all persons who . . . are or will be placed in the custody of the Franklin County Sheriff’s Office at the Franklin County Corrections Centers." The United States moved to join in the case under the provision of to the Violent Crime Control and Law Enforcement Act of 1994, and filed its own complaint to ensure the uniform national interpretation and application of civil rights laws pertaining to excessive force by law enforcement, an area in which the Justice Department has special expertise. The district court granted the United States’ motion to join the matter on Dec. 14, 2010.

The court-enforceable agreement not only establishes significant safeguards against the abusive use of CEDs against detainees and inmates, but also ensures that those who disobey deputies’ orders in a non-violent manner will not be stunned by the electrically charged weapons.  The agreement also requires changes to the suicide risk-assessment policies that will restrict the practice of electrically stunning individuals who show resistance to being forcibly changed into suicide safety gowns.

"The important public safety role that law enforcement agencies play does not excuse them from the responsibility to uphold the civil rights of all individuals," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.  "We commend the Franklin County Sheriff’s Office for acknowledging its responsibility to uphold the constitutional rights of persons in its custody.  Today’s agreement will go a long way towards increasing public confidence in the sheriff’s office and protecting the rule of law."

The Violent Crime Control and Law Enforcement Act of 1994 authorizes the Department of Justice to file lawsuits seeking court orders to reform law enforcement offices that are engaging in a pattern or practice of violating citizens’ federal constitutional and civil rights. Please visit www.justice.gov/crt to learn more about this Act and other laws enforced by the department’s Civil Rights Division.

WASHINGTON – A federal jury in Columbia, S.C., convicted Oddie Tribble, 51, a former police officer with the Kershaw County, S.C., Sherriff’s Office, of a civil rights violation for his use of excessive force on a man in his custody on Aug. 5, 2010.

 

According to evidence presented in court, Tribble struck Charles Shelley , 38, a handcuffed arrestee, more than 25 times with a metal baton, lacerating his skin and fracturing his leg. The assault was captured by video cameras at the Kershaw County Detention Center. Eyewitnesses to the beating, including law enforcement officers, testified that they were shocked to see the unjustified attack by a police officer.

 

“The jury ’s verdict demonstrates that no one is above the law, and that those who are sworn to protect our citizens will be held accountable when they violate the public tr ust and abuse the rights of individuals in their custody,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.

“This is the first time in over a decade that a law enforcement officer in the state of South Carolina has been convicted by a federal jury at trial of using excessive force,” said U.S Attorney Bill Nettles. “We appreciate the work the FBI and the S.C. Law Enforcement Division put into this case so that the jury had a solid case to consider. Let's be clear, the reason the jury found Oddie Tribble guilty is that he used a metal baton to beat a hand-cuffed man who posed no threat. The jury's verdict shows that South Carolina will not tolerate misconduct byour law enforcement officers.”

Sentencing before Federal District Court JudgeCameron McGowan Currie is scheduled for May 12, 2011. Tribble faces a maximum sentence of 10 years in prison and a $250,000 fine.

 

This case was investigated by the Columbia, S.C., Division of the FBI with assistance from the South Carolina Law Enforcement Division, and was prosecuted by Civil Rights Division Trial Attorney Christopher Lomax, First Assistant U.S. Attorney Beth Drake, and Assistant U.S. Attorney Tara McGregor.

WASHINGTON – Eight Miami-area nurses were sentenced to prison today for their roles in an $18.7 million Medicare fraud scheme involving home health care, announced the Departments of Justice and Health and Human Services.

 

The eight individuals each previously pleaded guilty to one count of conspiracy to commit health care fraud and were sentenced by U.S. District Court Judge Ursula Ungaro in Miami as follows:

 

·          Diana Sanabia, 36, registered nurse (R.N.), was sentenced to 30 months in prison, three years of supervised release and ordered to pay $594,000 in restitution;

·          Daisy Santos, 43, R.N., was sentenced to 30 months in prison, three years of supervised release and ordered to pay $699,000 in restitution;

·          Roberto Rodriguez, 44, R.N., was sentenced to 30 months in prison, three years of supervised release and ordered to pay $603,900 in restitution;

·          Marlene Magadan, 36, R.N., was sentenced to 24 months in prison, three years of supervised release and ordered to pay $334,200 in restitution;

·          Maria Perez, 49, R.N., was sentenced to 18 months in prison, three years of supervised release and ordered to pay $180,600 in restitution;

·          Alberto Alvarez, 55, R.N., was sentenced to 15 months in prison, three years of supervised release and ordered to pay $101,800;

·          Yanisley Chao, 32, licensed practical nurse (L.P.N.), was sentenced to 5 months in prison, two years of supervised release and ordered to pay $66,800 in restitution; and

·          Leonardo Malagon, 40, L.P.N., was sentenced to 5 months in prison, two years of supervised release and ordered to pay $65,900 in restitution.

 

The nurses were originally charged in a July 2010 indictment. Jorge Dieppa, M.D., who is also charged in the July 2010 indictment, awaits trial on one count of conspiracy to commit health care fraud and one count of false statements related to rights for benefit and payment by Medicare. The indictment also seeks forfeiture.

 

According to court documents, Miami-based health care agencies ABC Home Health Inc. and Florida Home Health Care Providers Inc. were owned by co-conspirators. ABC and Florida Home Health purported to provide home health and therapy services to Medicare beneficiaries. In particular, ABC and Florida Home Health referred Medicare beneficiaries to Dieppa to obtain prescriptions, medical certifications and plans of care for therapy and home health services at ABC and Florida Home Health. As a result, Medicare was billed approximately $18.7 million for services that were medically unnecessary and/or never provided.

 

According to plea documents, Perez and Chao worked for Florida Home Health; Santos, Magadan and Malagon worked for ABC; and Sanabia, Rodriguez and Alvarez worked for both ABC and Florida Home Health. These defendants falsified patient files for Medicare beneficiaries to make it appear that the beneficiaries qualified for services from Florida Home Health or ABC that were prescribed by Dieppa. In fact, the defendants knew that the services were not medically necessary and /or were not rendered.

 

According to plea documents, Sanabia and Santos also recruited Medicare beneficiaries for the agencies and received kickbacks for the recruitments. Sanabia and Santos knew that the beneficiaries they recruited did not qualify for the home health services for which ABC and Florida Home Health billed Medicare.

 

Co-defendant Alfredo Zayas, 76, a Medicare beneficiary who pleaded guilty to one count of conspiracy to commit health care fraud, was also sentenced today by Judge Ungaro to two years of probation. According to plea documents, Zayas, a beneficiary, solicited and accepted kickbacks and bribes for allowing his Medicare number to be used to bill Medicare for unnecessary home health treatments.

 

Sanabia, Santos, Magadan, Perez, Rodriguez, Alvarez, Chao, Malagon and Zayas were responsible for fraudulently billing to Medicare the following approximate amounts, respectively: $594,000, $699,000, $381,100, $180,600, $603,900, $101,800, $66,800, $65,900 and $23,800.

 

The sentences were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; John V. Gillies, Special Agent-in-Charge of the FBI’s Miami field office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office. 

 

This case is being prosecuted by Trial Attorney Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Miami.

 

Since their inception in March 2007, Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 850 individuals who collectively have falsely billed the Medicare program for more than $2.1 billion.  In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

 

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .

 

WASHINGTON - Brandon Smith, alias "Little One" y "King Little One", 26, de Hyattsvile, Md., se declaró culpable hoy de conspirar para participar en una empresa de delincuencia organizada en conexión con sus actividades pandilleras como miembro de Almighty Latin King y Queen Nation (Latin Kings).

La declaración de culpabilidad fue anunciada por el Secretario de Justicia Auxiliar Lanny A. Breuer de la División de lo Penal; el Fiscal Federal para el Distrito de Maryland Rod J. Rosenstein; la Agente Especial a Cargo Theresa R. Stoop de la División Local en Baltimore del Buró de Bebidas Alcohólicas, Armas de Fuego y Explosivos; el Jefe J. Thomas Manger del Departamento de Policía del Condado de Montgomery; el Departamento de Policía; el Fiscal Estatal del Condado de Montgomery, Md., John McCarthy; el Jefe Interino Mark Magaw del Departamento de Policía del Condado de Prince George; y la Fiscal Estatal del Condado de Prince George Angela Alsobrooks.

Según el acuerdo de declaración de culpabilidad de Smith, los Latin Kings son una pandilla callejera violenta con miles de miembros en todo el país y en el exterior. Los Latin Kings cuentan con una estructura de organización detallada, la que se describe - junto con diversas "oraciones", códigos de comportamiento y rituales - en un "manifiesto" por escrito ampliamente distribuido a miembros de todo el país. Los miembros de los Latin Kings reciben tradicionalmente "nombres de reyes" o "nombres de reinas" distintos a sus nombres legales, por los cuales los conocen los miembros de la pandilla y otros. En el ámbito local, los grupos de los Latin Kings están organizados en "tribus", incluidas la Tribu Royal Lion, MOG, Tribu Sun y UTL.

De acuerdo con el expediente judicial, Smith era miembro de las Tribus MOG y UTL en Maryland habiéndose unido a la Tribu MOG en enero de 2009. Smith participó en reuniones de los Latin Kings donde se cobraban derechos de los miembros y se discutían negocios de la pandilla, y se comunicaba con miembros y asociados de los Latin Kings por teléfono y vía Internet. En su acuerdo de declaración de culpabilidad, Smith admitió que él y otros miembros de los Latin Kings y asociados de Maryland viajaron a la Ciudad de Nueva York el 16 de enero de 2009, para participar en una reunión de los Latin Kings en el Club Nocturno Amazura en Queens, Nueva York. Después dela reunión, cuando Smith y otros miembros de los Latin Kings se encontraban enfrente al Amazura, paró un automóvil delante del club y un hombre disparó gritando "¡Mara, Mara!" (refiriéndose a la pandilla rival MS-13). Smith admitió que devolvió los disparos, vaciando su Tauros semiautomática 9 mm. Durante el tiroteo, cuatro Latin Kings recibieron disparos, así como un conductor de limusina, quien pasaba en su vehículo y recibió un tiro en la pierna debido al fuego cruzado.

Smith también admitió que él y varios miembros y asociados de los Latin Kings fueron a un domicilio en Wheaton, Md., el 31 de enero de 2009. Smith, el líder de la tribu MOG en ese momento, ordenó que una persona ingresara a un lavadero en el sótano y lo obligó a hacer la señal de la cruz de los Latin Kings con las manos, mientras que otros Latin Kings lo sujetaban a punta de pistola. A partir de la noche del 31 de enero de 2009, y hasta las primeras horas de la mañana el 1º de febrero de 2009, Smith amenazó a la persona, paseándose delante de él con una cuchilla y diciéndole que no dejara "caer" la corona (mover sus manos de la posición de corona). Smith admitió que, en cierto punto, cortó a la persona en la cara, indicando que quería verlo "perdiendo sangre" sobre el piso que y dejaría la casa embolsado. Smith instruyó a otro Latin King que le disparara a la persona en el corazón si dejaba caer la corona, en cuyo punto el otro Latin King cargó el gatillo. Smith llamó al líder de la Tribu MOG en el teléfono con altoparlante y le dijo que había cortado a la víctima y planeaba asesinarla. De acuerdo con el expediente judicial, agentes de la policía del Condado de Montgomery llegaron al lugar alrededor de este momento e instruyeron a todos que dejaran el domicilio. Después de haber sido amenazado por Smith y otros para que no denunciara, la víctima usó una máscara para cubrir su rostro al dejar el domicilio. Sin embargo, las fuerzas del orden público hicieron que la víctima se quitara la máscara y descubrieron su herida. La víctima recibió más de 150 puntos para cerrar el corto que se extendía a lo ancho de su rostro.

De acuerdo con el expediente judicial, durante la noche del 8 de julio de 2009, Smith y otros miembros y asociados de la tribu UTL intentaron asesinar a otra persona en Germantown, Md. La persona estaba caminando en una calle residencial con dos amigos cuando un automóvil se le acercó y varias personas e bajaron de vehículo corriendo a la persona, quien logró ocultarse por varios minutos. Cuando la persona salió de su escondrijo, lo persiguieron nuevamente. Le pegaron en la parte posterior de su cabeza y cayó al suelo. Smith admitió que él y otros miembros y asociados de UTL golpearon a la persona con un objeto parecido a un bate, y patearon, golpearon y apuñalaron a la víctima en múltiples oportunidades. De hecho, la víctima fue apuñalada con tal fuerza que la lámina de la cuchilla se quebró durante el ataque y fue recuperada en el lugar de los hechos. La víctima fue llevada al hospital y fue tratada por las múltiples heridas de cuchilla.

Smith enfrenta una sentencia máxima de cadena perpetua. El Juez Federal de Distrito Alexander Williams, Jr. ha programado la lectura de la sentencia para el 9 de mayo de 2011 a las 9:30 a.m. Smith permanece detenido.

Siete codemandados ya se han declarado culpables al cargo de conspiración para cometer asociación ilícita.

La Fuerza de Tarea de Coacción Antipandillas Regional [Regional Anti-Gang Enforcement (RAGE) Task Force] liderada por el Buró de Alcohol, Armas de Fuego, Tabaco y Explosivos [ATF - Bureau of Alcohol, Tabaco, Firearms and Explosives], la que incluye al Departamento de Policía de Gaithersburg, Md., el Departamento de Policía del Condado de Montgomery; la Fiscalía Federal del Condado de Montgomery, el Departamento de Policía del Condado de Prince George; la Oficina del Alguacil del Condado de Montgomery; La Policía Estatal de Maryland, así como el Departamento de Policía de Nueva York, el Servicio Secreto de EE.UU. y el Servicio de Impuestos Internos - Investigación Penal, proporcionaron asistencia en la investigación y la acusación.

Estuvieron a cargo de la acusación en el caso los Fiscales Federales Emily Glatfelter y David Salem, y la Abogada Litigante Lara M. Peirce de la Unidad de Pandillas de la División de lo Penal.

WASHINGTON - Brandon Smith, aka “Little One” and “King Little One,” 26, of Hyattsville, Md., pleaded guilty today to conspiracy to participate in a racketeering enterprise, in connection with his gang activities as a member and leader of the Almighty Latin King and Queen Nation (Latin Kings.)

       

The guilty plea was announced by Assistant Attorney General Lanny A Breuer of the Criminal Division; U.S. Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Theresa R. Stoop of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County, Md., Department of Police; Montgomery County State’s Attorney John McCarthy; Interim Chief Mark Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela Alsobrooks.

       

According to Smith’s plea agreement, the Latin Kings is a violent street gang with thousands of members across the country and overseas.  The Latin Kings have a detailed organizational structure, which is outlined – along with various “prayers,” codes of behavior, and rituals – in a written “manifesto” widely distributed to members throughout the country.  Members of the Latin Kings are also traditionally given “King Names” or “Queen Names,” which are names other than their legal names, by which they are known to members of the gang and others.  At the local level, groups of Latin Kings are organized into “tribes,” including the Royal Lion Tribe, MOG, Sun Tribe and UTL.

       

According to court documents, Smith was a member of the MOG and UTL Tribes in Maryland, joining the MOG Tribe in January 2009.  Smith attended Latin King meetings where dues were collected from members and gang business was discussed, and he communicated with Latin King members and associates by phone and through the Internet.  In his plea agreement, Smith admitted that he and other Latin King members and associates from Maryland traveled to New York City on Jan. 16, 2009, to attend a Latin King meeting at the Amazura Night Club in Queens, New York.  Following the meeting, as Smith and other Latin King members were standing in front of the Amazura, a car pulled up in front of the club and a man opened fire yelling “Mara, Mara!” (referring to rival gang MS-13).  Smith admitted that he returned fire, emptying his 9mm semi-automatic Taurus.  During the shooting, four Latin Kings were shot, as was a limousine driver, who was driving by and was struck in the leg by the cross-fire. 

       

Smith also admitted that he and several Latin King members and associates went to a residence in Wheaton, Md., on Jan. 31, 2009.  Smith, the enforcer for the MOG tribe at the time, ordered an individual into the basement laundry room and ordered him to make the Latin King crown sign with his hands, while two other Latin Kings held the individual at gunpoint.  From late in the evening on Jan. 31, 2009, and continuing into the early morning hours of Feb, 1, 2009, Smith threatened the individual, pacing in front of him with a knife, and telling the individual not to “drop” the crown (move his hands from the crown position).  Smith admitted that at one point, he slashed the individual across the face, stating that he wanted to see the individual “leaking” on the floor and that the individual was going to leave the house in a body bag.  Smith instructed another Latin King to shoot the individual in the heart if he dropped his crown, at which point the other Latin King cocked the gun.  Smith called the leader of the MOG Tribe on speaker phone and told him that he had sliced the victim and planned to murder him.  According to court documents, Montgomery County police officers arrived on the scene at about this time and directed everyone to leave the residence.  After being threatened by Smith and others not to “snitch,” the victim wore a mask to cover his face as he left the residence.  However, law enforcement had the victim remove his mask and discovered his wound. The victim received more than 150 stitches to close the gash that extended across his face. 

       

According to court documents, during the evening of July 8, 2009, Smith and other members and associates of the UTL tribe attempted to murder another individual in Germantown, Md.  The individual was walking on a residential street with two friends when a car approached and several people got out and began chasing the individual, who was able to hide for several minutes.  When the individual left his hiding place, he was chased again.  The individual was hit in the back of the head and fell to the ground. Smith admitted that he and the other UTL members and associates beat the individual with a bat-like object, and kicked, punched and stabbed the individual multiple times. In fact, the victim was stabbed with such force that the blade of the knife broke off during the attack and was recovered at the scene.  The victim was taken to the hospital and treated for the multiple stab wounds he sustained.

       

Smith faces a maximum sentence of life in prison.  U.S. District Judge Alexander Williams, Jr. has scheduled sentencing for May 9, 2011 at 9:30 a.m.  Smith remains detained.

       

Seven co-defendants previously pleaded guilty to the racketeering conspiracy.

 

The ATF-led Regional Anti-Gang Enforcement (RAGE) Task Force, which includes the Gaithersburg, Md., Police Department; the Montgomery County Department of Police; the Montgomery County State’s Attorney’s Office; the Prince George’s County Police Department; the Prince George’s County State’s Attorney’s Office; the Montgomery County Sheriff’s Office; the Maryland National Capital Park Police - Prince George’s County Division; and the Maryland State Police; as well as the New York Police Department, the U.S. Secret Service and the Internal Revenue Service - Criminal Investigation provided assistance in the investigation and prosecution.

       

The case was prosecuted by Assistant U.S. Attorneys Emily Glatfelter and David Salem, and Trial Attorney Lara M. Peirce with the Criminal Division’s Gang Unit.