District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Justice Department Secures Agreement with Worldwide Staffing Agency to Resolve Claims of Hiring Discrimination in the United StatesRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with eTeam Inc. (eTeam), an online staffing agency that provides services to companies throughout the United States and around the world. The agreement resolves the department’s determination that eTeam discriminated against non-U.S. citizens with permission to work in the United States by excluding them from job opportunities based on their citizenship or immigration status, in violation of the Immigration and Nationality Act (INA).
“Staffing companies cannot engage in hiring and recruiting practices that unlawfully exclude or deter people with permission to work in the United States because of their citizenship or immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold companies accountable for engaging in practices that create barriers to employment, in violation of our nation’s federal civil rights laws.”
The Civil Rights Division’s Immigrant and Employee Rights Section (IER)’s investigation found that during various months in 2021, eTeam regularly distributed job advertisements that contained unlawful hiring restrictions based on citizenship status or otherwise screened out candidates based on their citizenship status. These actions harmed lawful permanent residents and individuals granted asylum or refugee status by deterring them from applying to the job advertisements and failing to meaningfully consider those who did apply.
Under the terms of the settlement, eTeam will pay $232,500 in civil penalties to the United States and set aside $325,000 to compensate affected workers. The agreement also requires eTeam to train its personnel on the INA’s requirements, revise its employment policies and be subject to departmental monitoring and reporting requirements.
IER is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute generally prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
Find more information on how employers can avoid discrimination in recruiting and hiring on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify) or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected]; or visit IER’s English and Spanish websites. Sign up for email updates from IER.
Justice Department Secures Agreement with Florida State Attorney’s Office to Resolve Allegations of Discrimination Against Hispanic DefendantsRead the Press Release
The Justice Department announced today that it has secured an agreement with the Florida State Attorney’s Office for the Second Judicial Circuit (SAO) resolving allegations of violations of Title VI of the Civil Rights Act of 1964 (Title VI).
Specifically, the agreement resolves allegations of discrimination against Hispanic defendants charged with driving without a valid driver’s license by providing less favorable plea offers to them than it did to non-Hispanic defendants charged with the same crime. Title VI prohibits discrimination on the basis of race, color and national origin by recipients of federal financial assistance.
“To ensure fair, equitable treatment as well as public safety, state and local prosecutors must provide equal treatment in all aspects of the administration of justice, including plea deals,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Through this agreement, the State Attorney for Florida’s Second Judicial Circuit is taking action that will help ensure that the community is served without bias or discrimination.”
The department’s inquiry was prompted by allegations that the SAO posted plea offer guidelines that discriminated based on national origin by providing for harsher plea offers for Hispanic individuals driving without a valid license as compared to similarly situated individuals.
The SAO fully cooperated with the department’s inquiry and, under the terms of the agreement, agreed to take a number of steps to ensure nondiscrimination in prosecution, including implementing a new nondiscrimination policy and training its staff about nondiscrimination obligations.
Additionally, the SAO committed to convene a working group of community stakeholders to assist with the SAO’s continuing efforts to develop best practices for working with the community it serves. The SAO also will send a letter to defendants who may have been impacted by the alleged discriminatory policy, offering them an opportunity to seek an alternative disposition of their charge. The letter will be translated for defendants with limited English proficiency. The SAO has stated that it remains committed to ensuring that no defendant was discriminated against with respect to any plea offer made for the charge of driving without a valid driver’s license.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Members of the public may report possible civil rights violations at civilrights.justice.gov/report/.
Justice Department Secures Agreement from Ohio Landlords to Resolve Claims of Sexual Harassment Against Female TenantsRead the Press Release
The Justice Department announced that Joseph Pedaline, 72, of Youngstown, Ohio, and YLP LLC, who owned and managed residential rental properties in Youngstown, have agreed to pay $199,000 to resolve a lawsuit alleging that they violated the Fair Housing Act. The department’s lawsuit alleged that Joseph Pedaline sexually harassed female tenants from at least 2009 to at least 2020, and that YLP LLC was liable for Pedaline’s conduct during the period in which it owned and managed the properties.
“No one should ever have to fear sexual harassment when they sign a lease, pay their rent or simply spend time in their home,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Landlords who sexually harass tenants violate the Fair Housing Act, and the Justice Department will continue to hold landlords accountable for this egregious conduct.”
“This consent decree bars Pedaline from ever again having the ability to rent property to others, and thus prevents him from ever again subjecting Ohio tenants to sexual harassment and discrimination in return for a place to live,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “This resolution should serve as a strong reminder to all landlords that they must comply with all aspects of the Fair Housing Act and may not engage in discriminatory behavior that violates the security, safety and wellbeing of their tenants.”
Under the consent decree entered by the U.S. District Court for the Northern District of Ohio, Pedaline and YLP LLC must pay $189,000 to former tenants harmed by Pedaline’s discriminatory conduct and must pay a $10,000 civil penalty to the federal government. Pedaline and YLP LLC must also take steps to vacate any adverse judgments and repair the credit of tenants who were evicted after refusing Pedaline’s advances. The consent decree also bars future discrimination, permanently bars Pedaline from managing residential rental properties, mandates Fair Housing Act training and requires reporting regarding compliance with the consent decree’s terms.
The department’s lawsuit alleged that Joseph Pedaline subjected multiple female tenants to sexual harassment. According to the complaint, Pedaline subjected tenants to unwelcome sexual comments, entered the homes of female tenants without their consent, touched female tenants without their consent, offered to excuse late or unpaid rent in exchange for sexual acts and took adverse housing-related actions against female tenants who refused his sexual advances. The department’s complaint also alleged that YLP LLC was liable for Pedaline’s discriminatory conduct while it owned and managed the rental properties.
Assistant United States Attorneys Michelle Heyer and Kathryn Andrachik investigated the matter on behalf of the U.S. Attorney’s Office for the Northern District of Ohio.
Individuals who may have been victims of sexual harassment at rental dwellings owned or managed by Joseph Pedaline or YLP LLC can email [email protected] or call 1-833-591-0291 (press 1 for English, press 2 for sexual harassment and then press 01 for United States v. Joseph Pedaline to leave a message).
If you are a victim of sexual harassment by another landlord or have suffered other forms of housing discrimination, call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected] or submit a report online. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Reports may also may be made by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative in October 2017, the department has filed 42 lawsuits alleging sexual harassment in housing and recovered nearly $17 million for victims of such harassment.
El Departamento de Justicia llega a un acuerdo con una agencia internacional de dotación de personal para resolver acusaciones de discriminación en la contratación en los Estados UnidosRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con eTeam, Inc. (eTeam), una agencia de dotación de personal en línea que presta servicios a empresas por todo Estados Unidos y el mundo. El acuerdo resuelve la determinación del Departamento que eTeam discriminó a no ciudadanos de los EE. UU. con permiso para trabajar en los Estados Unidos cuando los excluyó de oportunidades laborales con base en su ciudadanía o estatus migratorio, en contra de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).
«Las empresas de dotación de personal no pueden participar en prácticas de contratación y reclutamiento que excluyan o disuadan ilegalmente a personas con permiso para trabajar en los Estados Unidos debido a su ciudadanía o estatus migratorio», comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá responsabilizando a las empresas por participar en prácticas que creen barreras al empleo, en contra de las leyes federales de derechos civiles de nuestra nación».
La investigación de la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División de Derechos Civiles determinó que, durante varios meses en el año 2021, eTeam distribuía regularmente anuncios de empleo que contenían restricciones de contratación ilegales basadas en el estatus de ciudadanía o que de otro modo seleccionaba a los candidatos en función de su estatus de ciudadanía. Estas acciones perjudicaron a residentes permanentes legales e individuos a los que se les ha otorgado el asilo o el estatus de refugiado al disuadirles de presentar una solicitud para los anuncios de trabajo y no considerar, de forma significativa, a aquellos que sí solicitaron un trabajo.
En virtud de los términos del acuerdo, eTeam pagará $232,500 en sanciones civiles a los Estados Unidos y destinará otros $325,000 para compensar a los trabajadores afectados. El acuerdo también requiere que eTeam capacite a su personal en cuanto a los requisitos de la INA, que revise sus políticas de empleo y que se someta a los requisitos de supervisión y declaración departamentales.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, por lo general, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminación en la contratación y el reclutamiento en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea gratuito o visualizar una presentación a la carta; enviar un correo electrónico a [email protected]; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
El Departamento de Justicia llega a un acuerdo con la Fiscalía Estatal de Florida para resolver alegaciones de discriminación contra imputados hispanosRead the Press Release
El Departamento de Justicia ha anunciado hoy que ha llegado a un acuerdo con la Fiscalía Estatal de Florida para el Segundo Circuito Judicial (SAO, por sus siglas en inglés) que resuelve las alegaciones de infracciones del Título VI de la ley de Derechos Civiles de 1964 (Título VI).
En concreto, el acuerdo resuelve las alegaciones de discriminación contra imputados hispanos acusados de conducir sin una licencia de conducir válida al proporcionarles ofertas de declaración de culpabilidad menos favorables que a imputados no hispanos acusados del mismo delito. El Título VI prohíbe la discriminación por motivos de raza, color de piel y origen nacional por parte de entidades que reciben apoyo financiero federal.
«Para garantizar la equidad, el tratamiento equitativo y la seguridad pública, los fiscales estatales y federales deben proporcionar un trato igualitario en todos los aspectos de la administración de la justicia, incluidos los acuerdos de declaración de culpabilidad», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «A través de este acuerdo, el Fiscal Estatal de Florida para el Segundo Circuito Judicial está tomando medidas que ayudarán a garantizar que se sirva a la comunidad sin sesgos ni discriminación».
La investigación del Departamento fue impulsada por alegaciones de que la SAO publicó pautas para ofertas de declaración de culpabilidad discriminatorias, basadas en la nacionalidad de origen, al proporcionar ofertas de declaración de culpabilidad más severas para individuos hispanos que conducen sin una licencia válida en comparación con otros individuos en una situación parecida.
La SAO cooperó plenamente con la consulta del Departamento y, en virtud de los términos del acuerdo, acordó tomar una serie de medidas para garantizar que no habría discriminación en el enjuiciamiento, incluida la implementación de una nueva política antidiscriminatoria y la capacitación de su personal en cuanto a las obligaciones antidiscriminatorias.
Además, la SAO se comprometió a convocar a un grupo de trabajo de partes interesadas de la comunidad para ayudar con los esfuerzos continuos de la SAO por desarrollar mejores prácticas para trabajar con la comunidad a la que sirve. La SAO también enviará una carta a los demandados que puedan haberse visto afectados por la supuesta política discriminatoria, ofreciéndoles la oportunidad de buscar una disposición alternativa de su cargo. La carta se traducirá para los imputados con un dominio limitado del inglés. La SAO ha declarado que sigue comprometida a garantizar que ningún imputado se discrimine con respecto a ofertas de declaración de culpabilidad hechas por el cargo de conducir sin una licencia de conducir válida.
Hay más información sobre la División de Derechos Civiles en su sitio web en a www.justice.gov/crt. Los miembros del público pueden denunciar posibles infracciones de los derechos civiles en civilrights.justice.gov/report/.
Justice Department Finds That Utah Violates Federal Civil Rights Law by Segregating People with DisabilitiesRead the Press Release
The Justice Department announced today its findings that Utah is violating the Americans with Disabilities Act (ADA) by unnecessarily segregating youth and adults with intellectual and developmental disabilities (I/DD) during the day, instead of helping them find work and spend their days in their communities.
The department found that the State relies on segregated settings, such as sheltered workshops and day facilities, where people with I/DD have limited interaction with people without disabilities and have little choice in how to spend their time. As a result, thousands of Utahns with I/DD spend their days separated from their communities. Other individuals with I/DD in the State, including youth with I/DD who are transitioning out of children’s services, are at serious risk of unnecessary segregation in these settings.
“Full inclusion in society is a central promise of the ADA,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “People with intellectual and developmental disabilities are entitled to full inclusion, and to the dignity and purpose that comes with deciding where to work and how to spend their days.”
Utah’s sheltered workshops are often located in large, industrial warehouses. People with I/DD who work in sheltered workshops may spend all day at the warehouse, performing rote tasks — like shredding paper — often for less than minimum wage. In day facilities, people with I/DD may similarly spend all day at the facility with nothing much to do other than craft or watch TV.
The ADA and the U.S. Supreme Court’s decision in Olmstead v. L.C. require state and local governments to make their services for people with disabilities available in the most integrated setting appropriate to each person’s needs. In October 2023, the department issued guidance explaining how this federal requirement applies to publicly-funded employment and day services.
The Civil Rights Division’s Disability Rights Section investigated the case, with assistance from the U.S. Attorney’s Office for the District of Utah.
For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov/topics/community-integration/.
For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Justice Department Finds State of Missouri Unnecessarily Institutionalizes Adults with Mental Health Disabilities in Skilled Nursing Facilities in Violation of the Americans with Disabilities Act and Improperly Relies on GuardianshipRead the Press Release
Remote video URL
The Justice Department announced today its findings that the State of Missouri violated Title II of the Americans with Disabilities Act (ADA) by unnecessarily institutionalizing adults with mental health disabilities in nursing facilities. The investigation also examined the role of guardianships in such institutionalization.The Justice Department determined that there is reasonable cause to believe Missouri violates the ADA by failing to provide the community-based services adults with mental health disabilities need in order to remain in their communities. It also found that the state is improperly relying on guardianship and that this leads to people entering nursing facilities even though community-based services are appropriate for their needs.
“People with mental health disabilities should not have to be confined to a nursing facility because they cannot access the community-based services they need,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will safeguard the rights of people with disabilities to participate fully in their communities. The state’s reliance on guardianships that serve as a pipeline to nursing facilities, rather than engaging people in community-based mental health services, has led to violations of the ADA.”
The department’s investigation found Missouri fails to provide community-based mental health services for many people with mental health disabilities who need them, including services such as:
- Assertive Community Treatment;
- Case management;
- Supported employment;
- Mobile crisis response;
- Crisis stabilization services;
- Permanent Supportive Housing;
- Peer support; and
- Supported Decision-Making.
Instead, the state makes nursing facility services for these people. Missouri can reasonably modify its system to remedy this violation by expanding community-based services and implementing processes to ensure that individuals can receive those services rather than entering nursing facilities.
Individuals with information relevant to this matter can contact the department by leaving a voicemail at 833-610-1242 or emailing [email protected]. The Justice Department will hold two virtual community meetings on Tuesday, June 25, at 6 p.m. CT/7 p.m. ET and Wednesday, June 26, at 12 p.m. CT/1 p.m. ET. Members of the public are encouraged to attend to learn more about the findings. Please register to join these meetings by clicking on the respective link. If you need an interpreter or accommodation to attend, please email [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt/rights-persons-disabilities and www.ada.gov.
View the findings report here.
View the notice letter here.
Court Orders Colorado e-Cigarette Maker to Stop Selling Unauthorized Vaping ProductsRead the Press Release
A federal court on June 11 enjoined a Colorado company and its owner from manufacturing, distributing or selling unauthorized vaping products.
In a complaint filed on June 6, in the U.S. District Court for the District of Colorado, the government alleged that Boosted LLC, also known as Boosted E-Juice, and its owner, Cory Vigil, violated the Federal Food, Drug and Cosmetic Act by introducing or delivering for introduction into interstate commerce adulterated and misbranded tobacco products. According to the complaint, the defendants manufactured and sold electronic finished nicotine delivery systems (ENDS) products, including finished e-liquids. The complaint alleged that the Food and Drug Administration (FDA) warned the defendants that their products, including flavored e-liquids sold as “Dragon Fruit Coconut Milkshake,” “Horchata Milkshake” and “Raspberry Milkshake,” were adulterated and misbranded because they lacked the required marketing authorization order from FDA. The government also alleged that despite repeated FDA written warnings, the defendants continued to illegally sell their flavored e-liquid products online.
The defendants agreed to settle the lawsuit and be bound by a consent decree of permanent injunction. The order entered by the court permanently enjoins the defendants from directly or indirectly manufacturing, distributing, selling, and/or offering for sale any new tobacco product that has not received marketing authorization from FDA. The court also ordered the defendants to destroy ENDS products in their custody, control, or possession.
The injunction against Boosted is the first enforcement action finalized since the Justice Department and FDA announced the creation of a federal multi-agency task force to combat the illegal distribution and sale of e-cigarettes. To date, the FDA has authorized the sale of 23 specific tobacco-flavored e-cigarette products and devices. These are the only e-cigarette products that currently may be lawfully marketed and sold in the United States.
“The illegal distribution of unauthorized vaping products poses a serious public health threat, particularly to youth,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will use all available criminal and civil authorities to bring new enforcement actions in coordination with our task force partners.”
“Those who disregard the law are responsible for the consequences, and today’s action is further demonstration of FDA working with our federal partners to hold those who break the law accountable,” said Director Brian King, Ph.D., M.P.H., of FDA’s Center for Tobacco Products (CTP). “This latest action brought by the FDA and DOJ shows how we’re taking an ‘all government’ approach toward addressing illegal e-cigarettes in this country.”
Trial Attorney Michael J. Murali of the Civil Division’s Consumer Protection Branch handled the case, with assistance from Assistant Chief Counsel Sarah Rosenberg of FDA’s Office of the Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
Claims made in a complaint are allegations that, if a case were to proceed to trial, the government would be required to prove by a preponderance of the evidence.
United States Files Complaint Against Adobe and Two Adobe Executives for Alleged Violations of Restore Online Shoppers’ Confidence ActRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today announced a civil enforcement action against Adobe Inc. and two Adobe executives, Maninder Sawhney and David Wadhwani, for alleged violations of the Restore Online Shoppers’ Confidence Act (ROSCA). The lawsuit alleges that the defendants imposed a hidden “Early Termination Fee” on millions of online subscribers and that Adobe forced subscribers to navigate a complex and challenging cancellation process designed to deter them from cancelling subscriptions they no longer wanted.
Adobe Inc. is a software company that offers online subscriptions to design and productivity software applications via its website, Adobe.com. David Wadhwani is Adobe’s President of Digital Media Business, and Maninder Sawhney is Adobe’s Vice President of Digital Go to Market & Sales.
According to a complaint filed in the U.S. District Court for the Northern District of California, the defendants have systematically violated ROSCA by using fine print and inconspicuous hyperlinks to hide important information about Adobe’s subscription plans, including about a hefty Early Termination Fee that customers may be charged when they cancel their subscriptions. The complaint alleges that for years, Adobe has profited from this hidden fee, misleading consumers about the true costs of a subscription and ambushing them with the fee when they try to cancel, wielding the fee as a powerful retention tool.
The complaint alleges that Adobe has further violated ROSCA by failing to provide consumers with a simple mechanism to cancel their recurring, online subscriptions. Instead, Adobe allegedly protects its subscription revenues by thwarting subscribers’ attempts to cancel, subjecting them to a convoluted and inefficient cancellation process filled with unnecessary steps, delays, unsolicited offers and warnings.
The lawsuit seeks unspecified amounts of consumer redress and monetary civil penalties from the defendants, as well as a permanent injunction to prohibit them from engaging in future violations.
“The Justice Department is committed to stopping companies and their executives from preying on consumers who sign up for online subscriptions by hiding key terms and making cancellation an obstacle course,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to enforce ROSCA against those who engage in such misconduct. No company, whether it is a small business or a member of the Fortune 500 like Adobe, is above the law.”
“Companies that sell goods and services on the internet have a responsibility to clearly and prominently disclose material information to consumers,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “It is essential that companies meet that responsibility to ensure a healthy and fair marketplace for all participants. Those that fail to do so, and instead take advantage of consumers’ confusion and vulnerability for their own profit, will be held accountable.”
“Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Americans are tired of companies hiding the ball during subscription signup and then putting up roadblocks when they try to cancel. The FTC will continue working to protect Americans from these illegal business practices.”
Trial Attorneys Francisco L. Unger, Amber M. Charles, Zachary L. Cowan and Wesline N. Manuelpillai of the Civil Division’s Consumer Protection Branch and Assistant Director Zachary A. Dietert are handling the case, with assistance by Assistant U.S. Attorney David M. DeVito for the Northern District of California, in coordination with staff at the FTC’s Bureau of Consumer Protection.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
ComplaintSouthern California Man Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
A Southern California man pleaded guilty yesterday to preparing and filing false tax returns for his clients.
According to court documents and statements made in court, starting in 2013, Salvador Gonzalez, of Corona, operated Grace’s Lighthouse Resource Center Inc., a return-preparation business. Since then, Gonzalez has prepared or assisted in the preparation of more than 11,000 tax returns that requested refunds from the IRS totaling more than $38 million.
Consistently, Gonzalez directed his clients to create a phony corporation and to title their homes, cars and other assets in the name of the corporation. Gonzalez then referred those clients to an associate to prepare these sham corporation’s tax returns. The associate would provide the clients with a blank spreadsheet and request that they input their business expenses into that spreadsheet. At Gonzalez’s direction, the clients would include personal expenses, such as their mortgage payments, car payments and utility bills, and then provide the spreadsheet to the associate. The associate would, in turn, use the spreadsheet to prepare the business tax returns, which inevitably would show a loss.
Gonzalez then prepared the clients’ individual income tax returns, which incorporated the fraudulent business losses and offset their income. To further reduce the clients’ taxes owed to the IRS, Gonzalez also fabricated deductions on the personal returns such as unreimbursed employee expenses, cash contributions to charity and medical and dental expenses. As a result of Gonzalez’s fraudulent return-preparation practices, his clients paid less taxes than they owed.
Gonzalez profited from his return-preparation business. Before 2019, he typically charged clients a flat fee of $500 per tax return. In 2019, he started charging clients 1% of their gross income as a fee for his services.
Gonzalez is scheduled to be sentenced on Oct. 7 and faces a maximum penalty of three years in prison for each of the three counts of aiding and assisting in the preparation of false tax returns to which he has pleaded guilty. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and any other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Martin Estrada for the Central District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Lauren K. Pope of the Justice Department’s Tax Division and Assistant U.S. Attorney Eli A. Alcaraz for the Central District of California are prosecuting the case.
Readout of Director Rachel Rossi’s Trip to Los AngelesRead the Press Release
Director Rachel Rossi of the Office for Access to Justice (ATJ) traveled to Los Angeles last week to engage access to justice stakeholders and deliver the commencement address at Le Lycée Franҫais de Los Angeles.
To further inform the office’s broad-ranging efforts to support reentry and reduce recidivism, Director Rossi and ATJ staff conducted visits with leading criminal justice reentry organizations. Director Rossi first met with Executive Director Sam Lewis of the Anti-Recidivism Coalition and Deputy Director Dana Jackson, where they discussed strategies to eliminate barriers faced by formerly incarcerated people when reentering society, and how these efforts must begin during incarceration. She then visited Homeboy Industries, the largest gang intervention, rehabilitation and reentry program in the world. At Homeboy Industries, she toured the main facility and met with staff and the founder, Father Gregory Boyle, a recipient of the Presidential Medal of Freedom in May.
Next, Director Rossi and ATJ staff met with representatives of the Inter-Agency Los Angeles Federal Pro Bono Committee. Agencies represented included leadership from the U.S. Attorney’s Office for the Central District of California and officials from the Department of Labor, Department of Homeland Security and Justice Department’s Executive Office of Immigration Review. The meeting highlighted the importance of regional pro bono committees to encourage and promote federal employee engagement in pro bono opportunities, as one strategy the office deploys through the Federal Government Pro Bono Program. She then met with Black faith leaders representing various churches from across Los Angeles County, convened by Elder Joe Paul at the Peoples’ Independent Church of Christ. The meeting focused on the front-line justice needs impacting local communities, including housing, access to public benefits, safety, civil rights, public school collaboration to address the barriers faced by children in underserved communities and the urgent need to address issues within the child welfare system for Black families.
The next day, Director Rossi and ATJ staff convened local stakeholders to discuss the significant challenges they face in providing for basic legal aid and language access needs in Los Angeles. They met with stakeholders from 23 legal services and community-based language justice organizations, as well as representatives from the City and County of Los Angeles. Director Rossi discussed ATJ initiatives to expand support for legal services providers and language access. She heard from stakeholders on a wide range of topics including, eviction, homelessness, federal funding for legal aid, translation and interpretation resource needs and advocacy surrounding language justice policies. The convening included leaders and staff from the Los Angeles Civil Rights Department, Mayor’s Office of Immigrant Affairs, Office of Immigration Inclusion and Language Access in the City of LA, Legal Aid Foundation of Los Angeles, Bet Tzedek Legal Services, Public Counsel, Asian-Americans Advancing Justice, Inner City Law Center, Mental Health Advocacy Services and Los Angeles Dependency Lawyers, among others.
Following the convening, Director Rossi met the Federal Public Defender for the Central District of California, Cuauhtemoc Ortega, to discuss support for access to counsel, public defense and access to justice. She also met with Ricardo Garcia, Los Angeles County Public Defender, who oversees the nation’s first and largest public defender office. In this meeting they discussed public defense workload standards, federal resources like ATJ’s Public Defense Resource Hub for state and local public defenders and recruitment and retention trends in public defense that are impacting access to justice for vulnerable, marginalized and underserved communities.
Director Rossi and ATJ staff then met with the Presiding Judge Samantha Jessner of the Los Angeles Superior Court (LASC) and the Executive Officer and Clerk of Court for LASC, David Slayton. Director Rossi discussed the launch of Access DOJ, the first localized human-centered design hub at the Justice Department, led by ATJ, working to make Justice Department programs and services more accessible, effective and efficient. The meeting focused on shared experiences, given a new human-centered design partnership between LASC, the largest trial court in the nation, and the Deborah L. Rhode Center for the Legal Profession at Stanford Law School. That effort will research, design and implement innovative, evidence-based approaches to reduce barriers to participation in the judicial process and to improve access to justice for all court users in Los Angeles.
To conclude the trip, Director Rossi gave the commencement address at Le Lycée Franҫais de Los Angeles, an international school with students representing over 62 nationalities, and specializing in bilingual French/American education. In her remarks, Director Rossi described ATJ’s mission, highlighted several ATJ initiatives, including language access, related experiences from her legal career and encouraged the students to pursue justice in through all career paths.
Director Rossi met with representatives and toured the headquarters of the Anti-Recidivism Coalition. Director Rossi met with Father Greg Boyle, founder and director of Homeboy Industries, and toured the campus.
Director Rossi and representatives from the Inter-Agency LA Federal Government Pro Bono Committee. Director Rossi met with Black faith leaders representing various churches from across Los Angeles County.
Director Rossi met with stakeholders from legal services and community-based language justice organizations, as well as representatives from the City and County of Los Angeles. Director Rossi and ATJ staff with the Presiding Judges of the Los Angeles Superior Court and the Executive Officer.Justice Department Secures Agreement with Staffing Agency to Resolve Claims of Employment DiscriminationRead the Press Release
The Justice Department announced today that it secured a settlement agreement with California staffing agency Selective Personnel Inc. (SPI). The agreement resolves the department’s determination that SPI’s predecessor business entity, South Bay Safety (SBS), violated the Immigration and Nationality Act (INA) by regularly discriminating against non-U.S. citizens when checking their permission to work in the United States.
“Employers cannot demand specific documents from workers because of their citizenship status when checking their permission to work,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to protecting workers from discriminatory practices that create unnecessary barriers to employment.”
After conducting an investigation, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) concluded that, between at least September 2020 and at least October 2022, SBS required that non-U.S. citizens present specific types of documentation reflecting their immigration status to prove their permission to work. In contrast, U.S. citizens could present any acceptable document of their choosing. Based on its investigation, IER concluded that SPI was a successor in interest to SBS, and liable for the violations that IER found.
Under the settlement, SPI will pay civil penalties to the United States, train its employees on the INA’s requirements, revise its employment policies and be subject to departmental monitoring.
U.S. citizens, U.S. nationals, lawful permanent residents, those granted asylum, refugees and other non-U.S. citizens with permission to work may legally work in the United States if they can prove their identity and permission to work. Federal law allows all workers to choose which valid, legally acceptable documentation to present to prove their identity and permission to work, regardless of citizenship status, immigration status or national origin. The INA’s anti-discrimination provision prohibits employers from asking for specific or unnecessary documents because of a worker’s citizenship, immigration status or national origin. Employers must allow workers to present whatever acceptable documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine and to relate to the worker.
IER is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices and retaliation and intimidation.
Find more information on how employers can avoid discrimination when verifying someone’s permission to work on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected] or visit IER’s English and Spanish websites. Sign up for email updates from IER.
Florida Tax Preparer Sentenced for False Return ConspiracyRead the Press Release
A Florida tax return preparer was sentenced today to 30 months in prison, two years of supervised release and to pay $970,970 in restitution for conspiring to defraud the United States by preparing and filing false tax returns for clients.
According to court documents and statements made in court, from 2017 through 2020, John Borgela ran Empire Tax Services (Empire) with his co-conspirator Phedson Dore and filed hundreds of false returns each year. Borgela typically inflated tax withholdings and reported fictitious itemized deductions to generate refunds for clients to which they were not entitled. To conceal his participation in the fraud, Borgela did not list on the returns his name as the person who prepared them or include Empire’s electronic filing number (EFIN). Instead, he used his employees’ names and the EFINs of other return preparation businesses.
Borgela and his co-conspirator caused a loss to the IRS of approximately $970,000. Dore was sentenced in February to 24 months in prison for his role in the conspiracy.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Brian Flanagan and Marissa Brodney of the Justice Department’s Tax Division and Assistant U.S. Attorney Shannon Laurie for the Middle District of Florida prosecuted the case.
El Departamento de Justicia llega a un acuerdo con una agencia de dotación de personal para resolver acusaciones de discriminación en el empleoRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Selective Personnel Inc. (SPI), una agencia de dotación de personal de California. El acuerdo resuelve la determinación del Departamento de que la entidad comercial antecesor de SPI, South Bay Safety (SBS), vulneró la ley de Inmigración y Nacionalidad (INA) cuando discriminó a no ciudadanos de los EE. UU. al verificar su permiso para trabajar en los Estados Unidos.
«A la hora de verificar su permiso para trabajar, los empleadores no deben exigir documentos específicos a los trabajadores por motivos de su estatus de ciudadanía», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles se compromete a proteger a los trabajadores de prácticas discriminatorias que creen barreras innecesarias al empleo».
Después de llevar a cabo una investigación, la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), de la División de Derechos Civiles, concluyó que entre al menos septiembre del 2020 y al menos octubre del 2022, SBS exigía que, para demostrar su permiso para trabajar, los no ciudadanos de los EE. UU. presentasen tipos específicos de documentación que reflejasen su estatus migratorio. Por el contrario, a los ciudadanos de los EE. UU. se les permitía presentar cualquier documento aceptable de su elección. Basándose en su investigación, la IER concluyó que SPI era un sucesor en interés de SBS y, por lo tanto, responsable de las infracciones que la IER descubrió.
En virtud del acuerdo, SPI pagará sanciones civiles a los Estados Unidos, capacitará a sus empleados en cuanto a los requisitos de la INA, revisará sus políticas de empleo y se someterá a la supervisión del Departamento.
Los ciudadanos de los EE. UU., los nacionales de los EE. UU., los residentes permanentes legales, los que reciben asilo o estatus de refugiado y otros no ciudadanos de los EE. UU. con permiso para trabajar pueden trabajar legalmente en los Estados Unidos si pueden demostrar su identidad y su permiso para trabajar. Las leyes federales permiten a todos los trabajadores elegir la documentación válida y legalmente aceptable que desean presentar para demostrar su identidad y permiso para trabajar, independientemente de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen. La disposición antidiscriminación de la INA prohíbe a los empleadores solicitar documentos específicos o innecesarios por motivos de la ciudadanía, el estatus migratorio o la nacionalidad de origen de un trabajador. Los empleadores deben permitir que los trabajadores presenten cualquier documentación aceptable que los trabajadores mismos elijan y no pueden rechazar documentación válida que parezca razonablemente genuina y relacionada con el trabajador.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminación al verificar el permiso para trabajar de alguien en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea en vivo o visualizar una presentación a la carta; enviar un correo electrónico a [email protected] ; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
Consulting Companies to Pay $11.3M for Failing to Comply with Cybersecurity Requirements in Federally Funded ContractRead the Press Release
Guidehouse Inc., headquartered in McLean, Virginia, has paid $7,600,000 and Nan McKay and Associates (Nan McKay), headquartered in El Cajon, California, has paid $3,700,000 to resolve allegations that they violated the False Claims Act by failing to meet cybersecurity requirements in contracts intended to ensure a secure environment for low-income New Yorkers to apply online for federal rental assistance during the COVID-19 pandemic.
In early 2021, Congress established the emergency rental assistance program (ERAP) to provide financial assistance to eligible low-income households to cover the costs of rent, rental arrears, utilities and other housing-related expenses during the COVID-19 pandemic. Participating governments were required to establish programs to distribute the federal funding to eligible tenants and landlords. In New York, the Office of Temporary and Disability Assistance (OTDA) was the state agency responsible for administering New York’s ERAP. In May 2021, Guidehouse and OTDA entered a contract under which Guidehouse, as the prime contractor, assumed responsibility for the New York ERAP, including for the ERAP technology and services provided to New Yorkers. Nan McKay, in turn, served as Guidehouse’s subcontractor and was responsible for delivering and maintaining the ERAP technology product used in New York to fill out and submit online applications requesting rental assistance (ERAP Application).
Guidehouse and Nan McKay shared responsibility for ensuring that the ERAP Application underwent cybersecurity testing in its pre-production environment before it was launched to the public. As part of the settlements announced today, Guidehouse and Nan McKay admitted that neither satisfied their obligation to complete the required pre-production cybersecurity testing. The state’s ERAP went live on June 1, 2021. Twelve hours later, OTDA shut down the ERAP website after determining that certain applicants’ personally identifiable information (PII) had been compromised and portions were available on the internet. Guidehouse and Nan McKay acknowledged that had either of them conducted the contractually-required cybersecurity testing, the conditions that resulted in the information security breach may have been detected and the incident prevented.
In addition, as part of its settlement, Guidehouse admitted that for a short time period in 2021, it used a third-party data cloud software program to store personally identifiable information without first obtaining OTDA’s permission, in violation of its contract.
“Federal funding frequently comes with cybersecurity obligations, and contractors and grantees must honor these commitments,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “The Justice Department will continue to pursue knowing violations of material cybersecurity requirements aimed at protecting sensitive personal information.”
“Contractors who receive federal funding must take their cybersecurity obligations seriously,” said U.S. Attorney Carla B. Freedman for the Northern District of New York. “We will continue to hold entities and individuals accountable when they knowingly fail to implement and follow cybersecurity requirements essential to protect sensitive information.”
“These vendors failed to meet their data integrity obligations in a program on which so many eligible citizens depend for rental security, which jeopardized the effectiveness of a vital part of the government’s pandemic recovery effort,” said Acting Inspector General Richard K. Delmar of the Department of the Treasury. “Treasury OIG is grateful for DOJ’s support of its oversight work to accomplish this recovery.”
“This settlement sends a strong message to New York State contractors that there will be consequences if they fail to safeguard the personal information entrusted to them or meet the terms of their contracts,” said New York State Comptroller Thomas P. DiNapoli. “Rental assistance has been vital to our economic recovery, and the integrity of the program needs to be protected. I thank the United States Department of Justice, United States Attorney for the Northern District of New York Freedman and the United States Department of Treasury Office of the Inspector General for their partnership in exposing this breach and holding these vendors accountable.”
On Oct. 6, 2021, the Deputy Attorney General announced the department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put sensitive information at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols or knowingly violating obligations to monitor and report cybersecurity incidents. Information on how to report cyber fraud can be found here.
The United States’ investigation was prompted by a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds, and to receive a share of any recovery. The settlement agreements in this case provide for the whistleblower, Elevation 33 LLC, an entity owned by a former Guidehouse employee, to receive a $1,949,250 share of the settlement amounts. The case is captioned United States ex rel. Elevation 33, LLC v. Guidehouse Inc. et al., Case No. 1:22-cv-206 (N.D.N.Y.)
Trial Attorney J. Jennifer Koh of the Civil Division's Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Adam J. Katz for the Northern District of New York handled this matter, with assistance from the Department of the Treasury OIG and the Office of the New York State Comptroller.
NMA Settlement Guidehouse SettlementUS Attorney for the Middle District of North Carolina recognizes World Elder Abuse Awareness DayRead the Press Release
GREENSBORO – Sandra Hairston, United States Attorney for the Middle District of North Carolina (USAO-MDNC), joined national, state, local, and Tribal leaders today in recognizing World Elder Abuse Awareness Day (WEAAD). Since 2006, WEAAD has been commemorated to promote awareness and increases understanding of the many forms of elder abuse as well as the resources available to those at risk.
Highlighting the partnership between law enforcement and the public, U.S. Attorney Hairston emphasized the importance of awareness and education.
“One in ten people over the age of 60 has experienced some form of elder abuse, with cases still widely underreported,” said U. S. Attorney Hairston. “Billions of dollars are lost to elder fraud scams each year. The USAO-MDNC and the Department of Justice are committed to prosecuting those who abuse the elderly, including by financial exploitation. These crimes are reprehensible, and we will use all of the tools available to us under the law to seek justice for our citizens.”
Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person in a trust relationship. Such harm may be financial, physical, sexual, or psychological. The Justice Department maintains a variety of programs and initiatives to combat elder abuse.
The Transnational Elder Fraud Task Force marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations, and networks responsible for these crimes, this initiative provides the public with information to guard against both traditional scams, like tech support fraud, as well as trending schemes, such as romance scams.
Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes, and helps people to recognize and avoid participation in perpetuating fraud.
To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes. For example, in Social Security Administration Impostor schemes, scammers impersonate government administrators by falsely reporting suspicious activity to request that the victims provide their Social Security numbers for confirmation. In Tech Support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer, and identify a non-existent problem, then demand large sums of money for unnecessary services. In Lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes.
To learn more about the Justice Department’s elder justice efforts, please visit the Elder Justice Initiative page.
The Middle District of North Carolina continues to work with federal, state, and local law enforcement partners to investigate and prosecute elder abuse crimes.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov.
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Tacoma Company Pleads Guilty and Sentenced for False Declarations on Timber ImportsRead the Press Release
Tip the Scale LLC, of Tacoma, Washington, pleaded guilty and was sentenced today for making false declarations regarding the species and harvest location of timber used in wooden cabinets and vanities.
Tip the Scale, doing business as L & D Kitchen and Bath, is an importer and seller of various home goods including wooden kitchen cabinets and bathroom vanities. According to court documents, between January and May of 2020, Tip the Scale imported five shipping containers of wooden cabinets and vanities, all of which were falsely declared. The products, which were harvested and produced in China, were declared as a false species of wood harvested in Malaysia. By doing so, Tip the Scale evaded oversight of Chinese-harvested timber and more than $850,000 in import duties.
The Lacey Act requires that importers of wood products file a declaration which describes the scientific genus and species as well as the harvest country of imports that contain timber. These declarations help stem the flow of protected, illegally logged or misdeclared timber species into the United States. Tip the Scale pleaded guilty to a single felony count of importing goods by means of false statements.
The company was sentenced to pay $360,000 in fines and serve three years of probation. During probation, Tip the Scale is required to implement a mandatory environmental compliance plan audited by a third party. Prior to the sentencing, the company paid more than $850,000 in outstanding duties. The cabinets and vanities were seized by the U.S. Fish and Wildlife Service and donated to a local branch of Habitat for Humanity.
“The United States was the first nation to criminalize transnational trafficking of plants and plant products, which includes home goods made with wood,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Enforcing the Lacey Act is our best tool in combatting timber trafficking.”
“Today’s sentencing sends a clear message that companies will be held accountable for violating environmental laws and deceiving customs authorities,” said Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in the Pacific Northwest. “By falsifying import documentation, L&D Kitchen and Bath sought to gain an unfair advantage over competitors and evaded important environmental protections. We are committed to working with our partners to detect and deter such deceptive practices, ensuring that all companies adhere to the law.”
“Illegal timber trafficking threatens not only critical forest ecosystems that countless species rely on, but also undermines the legitimate timber trade in U.S. and international markets,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service’s (USFWS) Office of Law Enforcement. “The U.S. Fish and Wildlife Service is committed to stopping transnational criminal enterprises and maintaining the integrity of the legal timber trade.”
“Customs and Border Protection is proud to work with all of our law enforcement partners to deliver appropriate consequences to those who violate the laws of our country,” said Director of Field Operations Brian Humphrey of Customs and Border Protection’s (CBP) Seattle Field Office.
HSI Seattle and the USFW Office of Law Enforcement investigated the case. The USFWS National Fish and Wildlife Forensics Laboratory conducted forensic testing. CBP also assisted with the case.
Senior Trial Attorney Patrick M. Duggan of the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case.
LDKB - Compliance Plan as filed.pdfGeorgia CPA Pleads Guilty to Promoting Syndicated Conservation Easement Tax Scheme Involving Fraudulent Charitable DeductionsRead the Press Release
A Georgia man pleaded guilty today to conspiracy and filing a false personal tax return related to his participation in the promotion and sale of abusive syndicated conservation easement tax shelters.
According to court documents and statements made in court, Herbert Lewis was a CPA and return preparer at an Atlanta-based accounting firm. Beginning at least in 2014 and through at least 2019, Lewis promoted and sold tax deductions to his wealthy clients in the form of units in illegal syndicated conservation easement tax shelters organized and created by co-defendants Jack Fisher, James Sinnott and others. For their involvement in the scheme, Fisher and Sinnott were sentenced in January to 25 and 23 years in prison respectively.
According to the superseding indictment, the scheme entailed the creation of partnerships that would purchase land and land-owning companies and then donate conservation easements over that land or the land itself. Appraisers would allegedly generate fraudulent and inflated appraisals of the conservation easements that frequently valued the easements at amounts at least 10 times higher than the price actually paid by the partnership for the land or land-owning company – often just months prior to the appraisals. As the superseding indictment charged, the partnerships claimed a charitable contribution tax deduction based on the inflated value of the conservation easement, resulting in a fraudulent tax deduction flowing to the clients who purchased units in the partnership.
According to court documents and statements made in court, Lewis knew that, contrary to law, the transactions related to these illegal tax shelters lacked economic substance; that his wealthy clients participated only to obtain a tax deduction and that his clients received only a tax benefit for their participation in the shelters. For example, a client who purchased units in a partnership had a “vote” ostensibly on what to do with the land the partnership owned. However, Lewis knew that the “vote” held by the partnership each year was just for optics and that the land invariably would be donated largely as a conservation easement.
In some cases, to make it appear that his clients had joined the partnerships before the date of the conservation easement donation, which was necessary to claim the tax benefits, Lewis also instructed and caused his clients to falsely backdate documents – such as subscription agreements and checks – related to the partnerships. In 2019 alone, Lewis assisted 15 clients with claiming false deductions on their 2018 returns. In total, Lewis assisted in the preparation of tax returns that claimed nearly $14 million in false deductions based on backdated documents, causing a tax loss to the IRS of nearly $5 million.
Lewis earned over $1 million in commissions for his role in promoting and selling the illegal tax shelters to clients. Lewis also concealed the amount of commissions he had earned from selling units in these shelters by not fully reporting the commissions on his personal returns and instead fraudulently reporting commission income he had earned as income on the tax returns of nominee entities in his children’s names.
Lewis is scheduled to be sentenced on Oct. 16 and faces a maximum penalty of five years in prison for the conspiracy charge and three years in prison for the charge of filing false tax returns. Lewis also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
To date, in addition to the convictions of Fisher and Sinnott noted above, eight additional defendants have pleaded guilty to criminal conduct related to the syndicated conservation easement tax shelter scheme, including appraiser Walter Douglas “Terry” Roberts, CPAs Stein and Corey Agee, CPA Ralph Anderson, CPA James Benkoil, CPA Victor Smith, CPA William Tomasello and CPA and Attorney Randall Lenz.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia and IRS Criminal Investigation Chief Guy Ficco made the announcement. They thanked U.S. Attorney Dena J. King for the Western District of North Carolina for her office’s assistance.
IRS Criminal Investigation and the U.S. Postal Inspection Service investigated the case.
Trial Attorneys Richard M. Rolwing, Parker Tobin, Jessica Kraft, Grace Albinson and Nicholas J. Schilling Jr., of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Huber, Deputy Chief of the Complex Frauds Section, for the Northern District of Georgia are prosecuting the case.
Justice Department Finds Civil Rights Violations by Phoenix Police Department and City of PhoenixRead the Press Release
Following a comprehensive investigation, the Justice Department announced today that the Phoenix Police Department (PhxPD) and the City of Phoenix (City) engage in a pattern or practice of conduct that violates the U.S. Constitution and federal law.
Specifically, the Department finds that:
- PhxPD uses excessive force, including unjustified deadly force and other types of force.
- PhxPD and the City unlawfully detain, cite, and arrest people experiencing homelessness and unlawfully dispose of their belongings. This is the first time the Department has found a pattern or practice of conduct that focuses on the rights of people experiencing homelessness.
- PhxPD discriminates against Black, Hispanic, and Native American people when enforcing the law.
- PhxPD violates the rights of people engaged in protected speech and expression.
- PhxPD and the City discriminate against people with behavioral health disabilities when dispatching calls for assistance and responding to people in crisis.
The Department also described serious concerns about PhxPD’s treatment of children. Finally, the Department identified deficiencies in policy, training, supervision, and accountability that contribute to PhxPD and the City’s unlawful conduct.
“The Justice Department has concluded there is reasonable cause to believe that the City of Phoenix and the Phoenix Police Department engage in a pattern or practice of conduct that deprives its residents and visitors, including Black, Hispanic, and Native American people, of their rights under the Constitution and federal law,” said Attorney General Merrick B. Garland. “The release of today’s findings report is an important step toward accountability and transparency, and we are committed to working with the City of Phoenix and Phoenix Police Department on meaningful reform that protects the civil rights and safety of Phoenix residents and strengthens police-community trust.”
“Phoenix residents deserve nothing less than fair, non-discriminatory, and constitutional policing,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our comprehensive investigation revealed unlawful and unconstitutional practices in the Phoenix Police Department’s enforcement activities that impact some of Phoenix’s most vulnerable residents, including Black, Hispanic, and Native American people, homeless people, and those experiencing behavioral health crises. The police also used excessive force, delayed necessary medical aid, and infringed on the civil rights of those engaged in First Amendment-protected conduct, including demonstrations and protests. Our findings provide a blueprint and a roadmap that can help transform the police department, restore community trust and strengthen public safety efforts in one of America’s largest cities. We are committed to working collaboratively with the police department, city officials, and the public to institute reform and remedy the violations we identified in our investigation.”
The Department opened this investigation on Aug. 5, 2021. Career attorneys and staff in the Civil Rights Division’s Special Litigation Section conducted the investigation. The team conducted numerous onsite tours; interviewed PhxPD officers, supervisors, and command staff; spoke with City officials and employees; accompanied behavioral crisis responders, specialty squads that frequently interacted with unhoused people, and officers on ride-alongs; reviewed thousands of documents; and reviewed hundreds of hours of body-worn camera footage.
As it does in every case, the division met regularly throughout the investigation with City and PhxPD officials to provide feedback on the observations of the Department and its policing experts and on reforms to address the issues observed. Multiple subject-matter experts advised the division on the investigation. Collectively, these experts have decades of experience in assessing police tactics and training, internal investigations, 911 call-taking and dispatch, and statistical analyses. Department attorneys and staff also met with community members, advocates, service providers, and other stakeholders in the Phoenix area.
Consistent with its standard practice in investigations of other cities, the Department provided a detailed briefing on the findings to the City and PhxPD on Tuesday, and proposed that the parties agree in principle to negotiate expeditiously and in good faith to reach a comprehensive court-enforceable settlement with independent monitoring.
The Department conducted this investigation pursuant to 34 U.S.C. Section 12601, which prohibits law enforcement officers from engaging in a pattern or practice of conduct that deprives people of rights protected by the Constitution or federal law, Safe Streets Act of 1968, Title VI of the Civil Rights Act of 1964, and Title II of the Americans with Disabilities Act.
The Department will conduct outreach to members of the Phoenix community to explain the findings and for input on remedies to address the Department’s findings. Individuals may also submit recommendations by email at [email protected] or by phone at 866-432-0335.
This is one of 11 investigations into law enforcement agencies opened by the Justice Department under Section 12601 since April 2021. Last year, the Department issued Section 12601 findings reports regarding two of those investigations: the Louisville, Kentucky, Metro Police Department and Minneapolis Police Department. The eight other investigations cover the Lexington, Mississippi, Police Department; Louisiana State Police; Memphis, Tennessee, Police Department; Mount Vernon, New York, Police Department; New York City Police Department’s Special Victims Division; Oklahoma City Police Department; Worcester, Massachusetts, Police Department; and Trenton, New Jersey, Police Department.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Information specific to the Civil Rights Division’s Police Reform Work can be found at www.justice.gov/crt/file/922421/download.
The Justice Department will hold a virtual community meeting at 6 p.m. PT / 9 p.m. ET. Members of the public are encouraged to attend to learn more about the findings. Please join the meeting at www.zoomgov.com/webinar/register/WN_wc5Fgkk9TaueUHSmV0J_Eg.
View the findings report here.
View the findings report in Spanish here.
View the executive summary here.
View the executive summary in Spanish here.
Interpol Washington and Panama Enhance Border Security Through Project TerminusRead the Press Release
INTERPOL Washington’s Project TERMINUS, in collaboration with the National Central Bureau (NCB) Panama, has significantly enhanced Panama's border security by integrating INTERPOL data into the newly established Border Information and Analysis Targeting Unit (BIATU).
“Through international collaboration, we have significantly increased our Panamanian partners’ ability to detect and disrupt threats, increasing the security in both of our nations,” said INTERPOL Washington Acting Director Jeffrey Grimming. “By better enabling the BIATU to provide timely, relevant, and actionable intelligence to border security leaders, we have collectively made significant strides toward building a safer region and safer world for us all.”
The Panama Ministry of Security recently established BIATU to provide critical intelligence at both strategic and operational levels to law enforcement. This U.S. Embassy-vetted unit operates with the support of a U.S. Customs and Border Protection advisor, who collaborates closely with BIATU personnel to address security vulnerabilities and threats.
However, during an initial site survey by PROJECT Terminus at the BIATU fusion center, it was determined that the center lacked direct access to INTERPOL databases managed by NCB Panama, causing significant gaps and delays in information exchange.
With funding from the U.S. Department of State, Project TERMINUS facilitated the direct connection of BIATU to critical INTERPOL data through NCB Panama, significantly enhancing operational efficiency. This integration not only strengthens Panama's overall security but also reinforces its relations with partner nations.
Project TERMINUS provides expert technical assistance to countries across the world seeking to integrate access to INTERPOL databases into their national border security information-sharing systems. This assistance helps nations screen against the illicit international travel of transnational criminals and terrorists.
El Departamento De Justicia Encuentra Vulneraciones De Los Derechos Civiles Por Parte De La Policía De Phoenix Y La Ciudad De PhoenixRead the Press Release
Después de una investigación exhaustiva, el Departamento de Justicia anunció hoy que la Policía de Phoenix (PhxPD) y la Ciudad de Phoenix (Ciudad) están incurriendo en un patrón o una práctica de conducta que vulnera la Constitución y las leyes federales.
En concreto, el Departamento halló que:
- La PhxPD utiliza fuerza excesiva, incluida la fuerza letal no justificada y otros tipos de fuerza.
- La PhxPD y la Ciudad detienen, citan y aprehenden ilegalmente a las personas sin techo y se deshacen ilegalmente de sus pertenencias. Esta es la primera vez que el Departamento ha encontrado un patrón o una práctica de conducta que se centra en los derechos de las personas sin techo.
- La PhxPD discrimina en contra de las personas negras, hispanas y amerindias cuando hacen cumplir las leyes.
- La PhxPD vulnera los derechos de las personas que participan en formas de discurso y expresión protegidas.
- La PhxPD y la Ciudad discriminan en contra de las personas con discapacidades de salud del comportamiento al despachar llamadas de asistencia y responder a las personas en crisis.
Por otra parte, el Departamento describió preocupaciones graves sobre cómo la PhxPD trata a los niños. Por último, el Departamento identificó deficiencias en políticas, capacitación, supervisión y rendición de cuentas que contribuyen a la conducta ilícita de la PhxPD y de la Ciudad.
“El Departamento de Justicia ha concluido que hay motivos razonables para creer que la ciudad de Phoenix y la PhxPD incurren en un patrón o una práctica de conducta que priva a sus residentes y visitantes, incluidas las personas negras, hispanas y amerindias, de sus derechos bajo la Constitución y las leyes federales”, dijo el Fiscal General Merrick B. Garland. “La publicación del informe de hallazgos de hoy es un paso importante hacia la rendición de cuentas y la transparencia, y estamos comprometidos a trabajar con la ciudad de Phoenix y la PhxPD en una reforma significativa que proteja los derechos civiles y la seguridad de los residentes de Phoenix y fortalezca la confianza entre la policía y la comunidad”.
“Los residentes de Phoenix merecen nada menos que una vigilancia policial justa, constitucional y no discriminatoria”, afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Nuestra investigación exhaustiva reveló prácticas ilegales e inconstitucionales en la aplicación de la ley por parte de la PhxPD que impactan a algunos de los residentes más vulnerables de Phoenix, incluidas las personas negras, hispanas, y amerindias, las personas sin techo y aquellas que se encuentran en medio de una crisis de salud del comportamiento. La policía también utilizó fuerza excesiva, retrasó la asistencia médica necesaria e infringió los derechos civiles de aquellos involucrados en conductas protegidas por la Primera Enmienda, incluidas manifestaciones y protestas. Nuestros hallazgos proporcionan un plan y una hoja de ruta que pueden ayudar a transformar el departamento de policía, restaurar la confianza de la comunidad y fortalecer los esfuerzos de seguridad pública en una de las ciudades más grandes de los Estados Unidos. Nos comprometemos a trabajar en colaboración con el departamento de policía, los funcionarios de la ciudad y el público para instituir reformas y remediar las vulneraciones que identificamos en nuestra investigación”.
El Departamento inició esta investigación el 5 de agosto del 2021. Abogados y personal de carrera en la Sección de Litigios Especiales de la División de Derechos Civiles llevaron a cabo la investigación. El equipo realizó numerosos recorridos in situ; entrevistó a agentes, supervisores y personal encargado de mando de la PhxPD; habló con funcionarios y empleados de la Ciudad; acompañó en los recorridos a equipos de respuesta ante crisis de salud del comportamiento, escuadrones especializados que interactuaban con frecuencia con personas sin techo y agentes en los recorridos; revisó miles de documentos; y revisó cientos de horas de grabaciones de cámaras corporales.
Como sucede en todos los casos, la División se reunió regularmente a lo largo de la investigación con funcionarios de la Ciudad y de la PhxPD para proveer comentarios sobre las observaciones del Departamento y sus expertos policiales y sobre las reformas para abordar los problemas observados. Múltiples peritos en la materia aconsejaron a la División durante la investigación. En conjunto, estos expertos tienen décadas de experiencia en la evaluación de tácticas y capacitación policiales, investigaciones internas, la toma y el despacho de llamadas al 911, y los análisis estadísticos. Los abogados y el personal del Departamento también se reunieron con miembros de la comunidad, defensores, proveedores de servicios y otras partes interesadas por la zona de Phoenix.
De acuerdo con su práctica estándar en investigaciones de otras ciudades, el Departamento proporcionó a la Ciudad y PhxPD una sesión informativa detallada sobre sus hallazgos el martes y propuso que las partes acordaran en principio a negociar de forma rápida y de buena fe para llegar a un acuerdo integral ejecutable por un tribunal con supervisión independiente.
El Departamento llevó a cabo esta investigación de conformidad con la Sección 12601 del Título 34 del Código de los EE. UU. (Sección 12601), que prohíbe a los agentes del orden público participar en un patrón o una práctica de conducta que prive a las personas de los derechos protegidos por la Constitución o las leyes federales, la ley de Calles Seguras de 1968, el Título VI de la Ley de Derechos Civiles de 1964 y el Título II de la ley de Estadounidenses con Discapacidades.
El Departamento llevará a cabo acciones directas con los miembros de la comunidad de Phoenix para explicar los hallazgos y para obtener información sobre posibles recursos para abordar los hallazgos del Departamento. Las personas también pueden enviar sus recomendaciones por correo electrónico a [email protected] o por teléfono al 866-432-0335.
Esta es una de las 11 investigaciones de agencias de aplicación de la ley iniciadas por el Departamento de Justicia en virtud de la Sección 12601 desde abril del 2021. El año pasado, el Departamento emitió informes de hallazgos bajo la Sección 12601 en dos de esas investigaciones: la Policía de la Zona Metropolitana de Louisville (Kentucky) y la Policía de Minneapolis. Las otras ocho investigaciones cubren la Policía de Lexington (Mississippi); la Policía Estatal de Louisiana; la Policía de Memphis (Tennessee); la Policía de Mount Vernon (New York); la División de Víctimas Especiales de la Policía de New York City; la Policía de Oklahoma City; la Policía de Worcester (Massachusetts); y la Policía de Trenton (New Jersey).
Hay más información sobre la División de Derechos Civiles en su sitio web en Civil Rights Division | División de Derechos Civiles (justice.gov).
Para información específica sobre el trabajo de reformación policíaca de la División de Derechos Civiles: www.justice.gov/crt/file/922421/download.
El Departamento de Justicia celebrará una reunión comunitaria virtual en 6 p.m. PT / 9 p.m. ET. Se anima a los miembros del público a que asistan para obtener más información sobre los hallazgos. Únase a la reunión a través de este enlace: www.zoomgov.com/webinar/register/WN_wc5Fgkk9TaueUHSmV0J_Eg
Attorney General Merrick B. Garland Statement on the Supreme Court’s Decision in FDA v. Alliance for Hippocratic MedicineRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the Supreme Court’s decision in FDA v. Alliance for Hippocratic Medicine:
“The Justice Department is gratified that today’s unanimous decision in FDA v. Alliance for Hippocratic Medicine ensures that mifepristone remains available for women across the country on the terms approved by the Food and Drug Administration (FDA).
For more than two decades, and across five presidential administrations, millions of Americans have relied upon FDA’s expert judgment that mifepristone is safe and effective for termination of early pregnancies. Today, more than half of those who choose to terminate their pregnancies rely on mifepristone to do so.
I am proud of the work of lawyers at the Justice Department for vigorously defending the FDA’s expert judgment about the safety and efficacy of a medication that women have relied upon for more than twenty years. But our work does not end today. The Department will continue to work tirelessly to protect and advance reproductive freedoms under federal law.
As I said the day Dobbs was decided, women who reside in states that have blocked access to comprehensive reproductive care must remain free to travel to states in which that care is lawful. Under the First Amendment, individuals must remain free to inform and counsel each other about the reproductive care that is available across state lines. And, as the Office of Legal Counsel has concluded, the Comstock Act does not prohibit people from mailing mifepristone or misoprostol when they do not intend the recipient to use those drugs unlawfully.
The Department of Justice is committed to protecting reproductive freedom. We will continue to use every tool at our disposal to protect women’s access to mifepristone and other lawful reproductive care.”
Statement from Attorney General Merrick B. GarlandRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland regarding the U.S. House of Representatives’ vote on H. Res. 1292:
“It is deeply disappointing that this House of Representatives has turned a serious congressional authority into a partisan weapon. Today’s vote disregards the constitutional separation of powers, the Justice Department’s need to protect its investigations, and the substantial amount of information we have provided to the Committees.
I will always stand up for this Department, its employees, and its vital mission to defend our democracy.”
Seventeen Federal Agencies Recognize Decade of Federal Progress Addressing Elder AbuseRead the Press Release
At a meeting of the Elder Justice Coordinating Council (EJCC) on Wednesday, June 12, 17 federal agencies including the Justice Department and the Department of Health and Human Services (HHS) will look back on a decade in which the federal government has significantly expanded efforts to combat elder abuse, neglect, and exploitation — including in the areas of enforcement, public education, training, interagency collaboration, research, and support for older adults who experience or are at risk of experiencing abuse.
“We know that the vast majority of elder abuse cases go unreported. And that too many victims remain unseen,” said Attorney General Merrick B. Garland. “That is why the Department of Justice has aggressively targeted perpetrators of elder fraud and abuse, while providing victims with the support they need. In the last five years, the Department has pursued more than 1,500 criminal and civil cases involving conduct that targeted or disproportionately affected older adults. We have provided services to more than 1.5 million older victims. And we have returned hundreds of millions of dollars to elder fraud victims. The Elder Justice Coordinating Council has played a key role in our work.”
“The Biden-Harris Administration is committed to supporting the health, well-being, and independence of older adults and to advancing equity for all Americans. Elder justice is a crucial element of both,” said HHS Secretary Xavier Becerra. “Today, we celebrate the progress we have made advancing elder justice. But we will not rest until every older person lives with dignity and without fear of abuse or neglect.”
“We know that it will take an all-of-government approach to make our shared vision of elder justice and community inclusion a reality, and in the last decade, the federal response to elder abuse has become more robust and coordinated,” said Alison Barkoff, who leads the Administration for Community Living. “It is incredible to reflect on the progress we have made in the years since the EJCC first convened. We have a lot of progress to build upon and so many opportunities to do more. The work of advancing elder justice has never been more important, or more urgent.”
The EJCC was established by the 2010 Elder Justice Act to coordinate federal activities related to elder abuse, neglect, and exploitation across the federal government. Today’s meeting looked back on accomplishments in the decade since the EJCC adopted Eight Recommendations for Increased Federal Involvement in Addressing Elder Abuse, Neglect, and Exploitation as a common set of priorities to guide federal efforts. Highlights include:
- HHS’ Administration for Community Living awarded the first-ever federal formula grants to support state adult protective services (APS) programs and established the first-ever federal regulations to improve quality and consistency of APS services. Until recently, APS programs had been funded and administered wholly at the state or local level.
- The Justice Department expanded its critical efforts to identify and combat transnational elder fraud schemes and, over just the past five years, has pursued over 1,500 criminal and civil cases involving conduct that targeted or disproportionately affected older Americans. It also significantly enhanced the capacity of state and local elder justice professionals to identify, investigate, and address elder abuse, neglect, and financial exploitation.
- The Justice Department, FBI, U.S. Postal Inspection Service, and five other federal law enforcement agencies undertake an annual Money Mule Initiative, targeting networks of individuals through which international fraudsters obtain proceeds of fraud schemes. These individuals, sometimes referred to as money mules, receive money from fraud victims and forward the illicit funds, often to overseas perpetrators. Since 2020, U.S. law enforcement has taken to address over 14,000 money mules through the annual initiative; enforcement actions have occurred in every state in the country.
- The HHS’ Administration for Community Living developed the National Adult Maltreatment Reporting System (NAMRS), a first-of-its-kind effort to systematically collect from APS programs across the country standardized data about the incidence of elder maltreatment. Participation is voluntary, but all states, territories, and the District of Columbia submit data each year.
- The Social Security Administration (SSA) launched Slam the Scam Day in 2020 to raise awareness about government imposter scams. In addition, SSA has created a variety of resources to train its employees, representative payees, and others on to recognize elder abuse and financial exploitation.
- The Federal Trade Commission established the Senior Scams Prevention Advisory Group of government partners, consumer advocates, and industry representatives to collaborate, develop ideas, share suggestions, and insights and identify actions that can be taken to help older adults spot, avoid, and report scams. The advisory group’s four subcommittees focus on expanding consumer education efforts; improving industry training on scam prevention; identifying innovative or high-tech methods to detect and stop scams; and developing research on consumer or employee engagement to reduce fraud.
In addition to leaders from HHS and the Justice Department, speakers at today’s EJCC meeting will include four pioneers of the elder justice movement whose hard work has made the progress of the last decade possible:
- Marie-Therese Connolly, President, RISE Collaborative; Former Coordinator, Elder Justice Initiative and Former Senior Trial Counsel, Civil Fraud Section, Commercial Litigation Branch, Civil Division, Justice Department
- Kathy Greenlee, Senior Director of Elder Justice Initiatives, Advancing States and Former Assistant Secretary for Aging, Administration for Community Living, HHS
- Sidney Stahl, former Chief, Individual Behavioral Processes Branch, National Institute on Aging, National Institutes of Health
- Edwin Walker, former Deputy Assistant Secretary for Aging at HHS’ Administration for Community Living.
By statute, the EJCC is chaired by the HHS Secretary, and the Attorney General is a permanent member. HHS has assigned responsibility for implementing the EJCC to the Administration for Community Living. Since it was created, the EJCC has grown from nine to 17 members, with each new agency bringing unique knowledge and resources to address the complex issue of elder maltreatment.
Research shows that at least one in 10 older adults who live in the community experiences some form of maltreatment each year — and this is likely an undercount, because only one in 14 cases is reported. People who experience abuse have higher rates of depression, hospitalization, and institutionalization — and they are more likely to die prematurely. They also may experience deteriorated family relationships, diminished autonomy, and institutionalization as the direct result of maltreatment.
Pharmacy Owner Sentenced for $1M Health Care Fraud SchemeRead the Press Release
A California man was sentenced today to two years in prison for submitting more than $1 million in false and fraudulent claims to Medicare for prescription drugs that were never dispensed to beneficiaries.
According to court documents, Paul Mansour, 56, of Sierra Madre, was a pharmacist who co-owned Mansour Partners Inc., doing business as Best Buy Drugs (Best Buy). From January 2017 to July 2022, Mansour created fake patient profiles in the Best Buy pharmacy’s digital filing system using fictitious names, dates of birth, and addresses. Mansour added fraudulent prescriptions to the fake patient profiles and then submitted false and fraudulent claims to Medicare for those prescriptions in the name of actual Best Buy patients. In doing so, Mansour billed Medicare for fraudulent prescriptions that were never dispensed to beneficiaries.
Mansour pleaded guilty on April 5, 2023, to one count of health care fraud.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Acting Assistant Director in Charge Krysti Hawkins of the FBI Los Angeles Field Office; and Special Agent in Charge Timothy DeFrancesca of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorney Matthew R. Belz of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Oklahoma Corrects Noncompliance with the National Voter Registration Act Following Justice Department NoticeRead the Press Release
The Justice Department announced that the State of Oklahoma has taken corrective action regarding driver’s license and ID card applications and forms that previously did not comply with Section 5 of the National Voter Registration Act (NVRA).
Section 5 of the NVRA, also known as the motor voter provision, requires that all applications for a driver’s license or state ID — including online renewal applications — provide an opportunity to register to vote or to update an existing voter registration. The NVRA also requires that any paper or online change of address form for a driver’s license or state ID automatically update the address on voter registration records, unless a voter indicates that the change is not for voting purposes.
“An inclusive democracy must provide all eligible voters access to the full range of voter registration opportunities required by law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We encourage states and jurisdictions across the country to ensure that they are making voter registration opportunities fully and equally accessible at DMVs and other social services agencies, both in person and online. The Justice Department is committed to ensuring full compliance with the NVRA.”
Earlier this year, the Justice Department told the state that its online renewal applications for driver’s licenses and state ID cards did not provide the required opportunity to register or update an existing voter registration record. The state’s online change of address form also could not update voter registration records. The department met with state officials, who acted to correct these omissions, along with similar ones on paper forms. The state also committed to notifying voters affected by these lapses. Additionally, the state is providing instructions so that eligible citizens not currently registered to vote at the address found in their driver’s license or ID card records can register or update outdated registration records.
The department will continue to monitor the implementation of these changes and this remedial program, and it welcomes feedback from the public. Complaints about discriminatory practices may be reported through the Civil Rights Division’s website at civilrights.justice.gov or by calling (800) 253-3931.
More information about the NVRA and about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.
Michigan Shipping Magnate Charged with Filing False Tax Returns and Employment Tax CrimesRead the Press Release
A Michigan man made his initial appearance in court today before U.S. Magistrate Judge Elizabeth A. Stafford of the U.S. District Court for the Eastern District of Michigan on an indictment that charged him with filing false tax returns and not paying employment taxes for his company’s employees.
According to the indictment, which was unsealed on June 4, from 2017 to 2020, Ali Kassem Kain, of Northville, operated a transportation business that arranged for automobiles to be shipped abroad. For tax years 2017 through 2020, Kain allegedly underreported the business’ gross receipts by several million dollars each year on the business’ corporate returns. For those same years, he also underreported the amount of income he earned from his business on his personal returns.
In addition, Kain was allegedly responsible for withholding Social Security, Medicare and federal income taxes from his employees’ wages and paying those amounts over to the IRS. Instead, Kain allegedly did not collect all these taxes for his company’s employees and did not pay over the full amount due to the IRS.
In total, Kain is alleged to have caused a tax loss to the IRS of nearly $5 million.
Kain was charged with 15 counts of failing to collect and pay over employment taxes and eight counts of filing false tax returns. If convicted, Kain faces a maximum penalty of five years in prison for each employment tax count and a maximum penalty of three years in prison for each count of filing a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dawn N. Ison for the Eastern District of Michigan made the announcement.
IRS Criminal Investigation and the FBI Detroit Field Office are investigating the case.
Senior Litigation Counsel Corey Smith and Trial Attorney Richard Kelley of the Tax Division and Assistant U.S. Attorney Jerome Gorgon for the Eastern District of Michigan are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Robert Hunter Biden Found Guilty of Three Felonies Related to the Illegal Purchase of a FirearmRead the Press Release
After a week-long trial, a federal jury in the District of Delaware found Robert Hunter Biden guilty of three felonies connected with his illegal purchase of a firearm in October 2018, including making a false statement in the purchase of a firearm, making a false statement related to information required to be kept by a federally licensed firearms dealer, and possession of a firearm by a person who is an unlawful user of or addicted to a controlled substance.
“This case was about the illegal choices the defendant made while in the throes of addiction — his choice to lie on a government form when he bought a gun and the choice to then possess that gun,” said Special Counsel David C. Weiss. “It was these choices and the combination of guns and drugs that made his conduct dangerous. No one in this country is above the law. However, Hunter Biden should be no more accountable than any other citizen convicted of the same conduct. The prosecution has been and will continue to be committed to this principle, and to the principles of federal prosecution in carrying out its responsibilities.”
Biden purchased a Colt Cobra 38SPL revolver from a federally licensed firearms dealer on Oct. 12, 2018. When purchasing a firearm, a prospective purchaser must fill out a Firearm Transaction Record, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473, and certify that all of his or her answers on the form are true and correct.
According to the evidence presented at trial, Biden knowingly made a false written statement on the ATF Form 4473 when he certified that he was not an unlawful user of, or addicted to, any stimulant, narcotic drug or any other controlled substance. In fact, he knew that statement was false. Evidence at trial further proved that Biden knowingly made a false statement and representation to a federally licensed firearms dealer with respect to information the dealer is required to keep under federal law. Lastly, during an 11-day period between Oct. 12 and Oct. 23, 2018, Biden possessed a firearm while knowing he was an unlawful user of or addicted to any stimulant, narcotic drug or any other controlled substance, in violation of federal law.
Court documents and information for this case is located on the website of the U.S. District Court for the District of Delaware or on PACER by searching for Case No. 23-cr-00061-MN.
Justice Department Seeks to Shut Down Fort Worth-Area Tax Return PreparerRead the Press Release
The Justice Department filed a complaint in the U.S. District Court for the Northern District of Texas today seeking to bar a Fort Worth, Texas-area tax return preparer from preparing federal income tax returns for others.
The complaint alleges that Ruben Gonzalez and his employees prepared over 14,000 federal income tax returns from 2021-2023 through a sole proprietorship named “Sin Barreras Income Tax.” According to the complaint, in a substantial number of these tax returns, Gonzalez and others he employed significantly overstated customers’ tax refunds by fabricating or inflating business losses, falsifying charitable donation deductions and falsely claiming energy credits and coronavirus family sick leave credits to which the customers were not entitled.
By repeatedly understating customers’ tax liabilities, the complaint alleges that Gonzalez caused the United States harm of almost $20 million in lost tax revenue from 2021-2023.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Attorneys for the Tax Division are handling the case.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
1-Gonzalez Complaint.pdfJustice Department Secures More Than 500 Prosecutions Under New Firearms Statutes Enacted by Bipartisan Safer Communities ActRead the Press Release
The Justice Department announced it has charged more than 500 defendants under the new criminal provisions of the Bipartisan Safer Communities Act (BSCA), which Congress enacted, and the President signed in June 2022. The Act is the first standalone federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
“Criminals rely on illegal gun traffickers and straw purchasers to obtain the weapons they use to harm our communities,” said Attorney General Merrick B. Garland. “The Justice Department is using the new tools given to us in the Bipartisan Safer Communities Act to hold accountable those who fuel gun violence.”
The BSCA was passed in the wake of the tragic mass shootings — including at Robb Elementary School in Uvalde, Texas, Topps Grocery Store in Buffalo, New York, and a house of worship in Laguna Woods, California — that, together with the gun violence experienced in our communities every day, reverberates through our families, communities, and entire nation. As the first significant gun safety legislation in decades, the BSCA provided powerful new tools to prosecute firearms traffickers and address gun violence.
Some recent cases include charging five individuals in Texas for allegedly trafficking military grade firearms to a drug cartel in Mexico; a three year sentence in New Mexico for illegal sale of firearms, including machineguns, and the illegal possession and transfer of machineguns; and a 10 year sentence in Pennsylvania for unlawful possession, manufacturing, and trafficking of ghost guns sold as part of “hit kits.”
The new statutes, 18 U.S.C. § 933 and 932, directly prohibit straw purchasing and firearms trafficking and significantly enhance the penalties for those crimes, providing for up to 15 years in prison. Criminals and prohibited individuals seek out straw purchasers, who lie about who is actually buying the firearm, because, by necessity, straw purchasers do not have a criminal history. The stronger penalty provisions enhance deterrence, signaling to potential straw purchasers and others involved in trafficking that these are serious offenses and not mere “paperwork violations” or victimless crimes.
Although there is more to be done, reaching this milestone shows that federal prosecutors and agents, as well as our state, local, Tribal, and territorial partners throughout the United States, have been using these new authorities to take a monumental step in addressing gun violence.
Four Additional States Join Justice Department’s Suit Against Apple for Monopolizing Smartphone MarketsRead the Press Release
The Attorneys General of Indiana, Massachusetts, Nevada and Washington today joined the civil antitrust lawsuit brought by the Justice Department, 15 states and the District of Columbia against Apple in March for monopolizing multiple smartphone markets in violation of Section 2 of the Sherman Act. The department and its now expanded group of 20 co-plaintiffs filed an amended complaint in the District of New Jersey.
“We welcome the States of Indiana, Massachusetts, Nevada and Washington, who join our existing coalition to restore competition in the smartphone markets that Apple has monopolized,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “We look forward to litigating this important case alongside our state partners to deliver the benefits of competition to consumers, app developers, accessory makers and the American public.”
View the amended complaint here.
Captain of Oil Tanker Pleads Guilty to Obstruction and Violating Ship Pollution Prevention LawsRead the Press Release
Captain Abdurrahman Korkmaz, 37, pleaded guilty today to a two-count information charging him with violating the Act to Prevent Pollution from Ships (APPS) and for obstructing proceedings. Korkmaz, a Turkish national, was the captain of the PS Dream, a Panama-flagged motor tanker. The two related companies that operated the PS Dream pleaded guilty last month to environmental crimes.
The PS Dream arrived in New Orleans on Jan. 26, 2023. The U.S. Coast Guard conducted an inspection which included a review of the vessel’s oil record books. In his plea, Korkmaz acknowledges presenting the books to the Coast Guard knowing that they omitted information about discharging oily waste to the ocean before arriving in the United States. The falsified logs were intended to conceal the fact that beginning on Jan. 11, the crew had dumped oil-contaminated waste overboard on the voyage to New Orleans and was not complying with international treaties regulating oil pollution from ships.
According to documents and statements filed in court, Korkmaz ordered his crew to pump overboard from the residual oil tank which contained oily waste. A portable pump placed inside the tank and connected to a long flexible hose was used to discharge directly into the ocean without any required pollution prevention equipment or monitoring. The waste oil, including sludge, originated in the engine room and had been improperly transferred into the residual oil tank on the deck of the ship by a prior crew.
Senior managers at Prive Shipping LLC and Prive Shipping Denizcilik Ticaret – two related companies that operated the ship – were aware that the oil-contaminated waste remained in the tank and were informed by Korkmaz that it had been dumped overboard. Both companies pleaded guilty and are scheduled for sentencing on Sept. 26.
Korkmaz is scheduled to be sentenced on Sept. 10. He faces a maximum penalty of six years in prison, with a fine of up to $250,000, or twice the gain or loss from the offense, for the APPS charge. He also faces a maximum penalty of five years in prison, with a fine of up to $250,000, or twice the gain or loss from the offense, for the obstruction charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; Special Agent in Charge Damon J. Youmans of the Coast Guard Investigative Service’s Gulf Field Office and Captain Greg Callaghan, Commander of U.S. Coast Guard Sector New Orleans made the announcement.
The Coast Guard Investigative Service and the Environmental Protection Agency’s Criminal Investigations Division investigated the case with assistance from U.S. Coast Guard Sector New Orleans.
Senior Litigation Counsel Richard A. Udell and Senior Trial Attorney Ryan Connors of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorneys G. Dall Kammer and Christine M. Calogero for the Eastern District of Louisiana are prosecuting the case.
United States Sues Telehealth Providers and Executives for Unfair and Deceptive ConductRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today announced that the United States filed an amended complaint against telehealth company Cerebral Inc., Cerebral’s founder and former Chief Executive Officer, Kyle Robertson; former Cerebral executive Alex Martelli; telehealth companies Zealthy Inc., Gronk Inc. and Bruno Health P.A. and an executive of those companies, German Echeverry. The government has settled its claims against Cerebral, Inc. The proposed stipulated order pending approval by the U.S. District Court for the Southern District of Florida would require Cerebral to cease misusing and improperly disclosing patient information, misrepresenting its data privacy or security practices and misrepresenting its cancellation practices. Upon issuance of the order, Cerebral will also be required to pay approximately $5 million in consumer redress in addition to a civil penalty judgment of $10 million, which is suspended to $2 million based on its limited ability to pay.
The Justice Department continues to pursue relief arising from its claims against Robertson and Martelli, as well as telehealth companies Zealthy Inc., Gronk Inc. and Bruno Health P.A. and their executive German Echeverry.
The Unlawful Conduct of Cerebral and Its Executives
The United States alleges that Cerebral and Robertson violated the Federal Trade Commission Act (FTC Act), the Opioid Addiction Recovery Fraud Prevention Act of 2018 (the Opioid Act) and the Restore Online Shoppers’ Confidence Act (ROSCA) in connection with their misuse of patients’ sensitive personal health information, failure to keep that information private and secure and use of deceptive, burdensome and convoluted cancellation practices.
According to the amended complaint, which was filed on May 31, Cerebral and Robertson violated the FTC Act in two primary ways. First, the company failed to protect consumers’ sensitive health information when — at Robertson’s direction — it intentionally deployed online tracking technologies across its website. These tracking technologies collected and transmitted users’ information, without users’ informed consent, to third parties for business purposes such as targeted advertisements. In doing so, the company contravened its own express claims that its services were “private” or “confidential,” and that it would not disclose user data to third parties without the users’ consent.
Second, Cerebral and Robertson failed to safeguard consumers’ sensitive data from unauthorized disclosure, despite claiming that the company’s website offered “secure” services to do so. Cerebral’s deficient practices led to chronic data security breaches and repeated unauthorized disclosures of users’ sensitive health information.
The amended complaint also alleges that Robertson and Martelli violated the FTC Act by causing Cerebral employees to falsely impersonate patients on online review sites, post fictitious reviews praising the company’s services and suppress authentic, negative reviews of the company.
The amended complaint further alleges that Cerebral and Robertson violated ROSCA by failing to clearly disclose material terms related to data privacy, data security and cancellation before obtaining patients’ billing information, by failing to obtain patients’ informed consent before billing them, and by failing to provide consumers with simple mechanisms to cancel their Cerebral subscriptions. As a result, Cerebral obtained millions of dollars from consumers who unsuccessfully attempted to cancel their subscriptions.
Finally, the amended complaint alleges that Cerebral, Robertson and Martelli violated the Opioid Act by engaging in deceptive acts or practices with respect to substance use disorder treatment services.
The Unlawful Conduct of Zealthy Inc. and Its Executives
The amended complaint further alleges that Robertson continued to violate the FTC Act and ROSCA after he left Cerebral. In May 2022, Robertson founded another telehealth company, Zealthy Inc. (later renamed Gronk Inc.), which he heads alongside German Echeverry, its Medical Director. According to the Amended Complaint, through Zealthy and its affiliated medical corporation, Bruno Health, Robertson and Echeverry violated ROSCA by failing to clearly disclose material terms of online subscriptions before obtaining consumers’ billing information, by failing to obtain consumers’ express informed consent to those terms before charging their credit cards and by failing to provide consumers with a simple cancellation process to stop recurring charges. The government also alleges that Zealthy and its executives violated the FTC Act by committing unfair and deceptive business practices. Such practices include billing consumers for costs they did not knowingly agree to; misleading consumers about the terms of their telehealth subscriptions; disregarding consumers’ cancellation requests and making it challenging for consumers to cancel; and tracking, collecting, disclosing and using consumers’ sensitive, personal data in ways that were not fully disclosed to consumers and that consumers did not knowingly authorize.
The department will continue to pursue civil penalties, injunctive relief and monetary relief against Robertson, Martelli, Echeverry, Bruno Health and Zealthy.
“The Justice Department is committed to stopping companies and their executives from mishandling and misusing individuals’ sensitive personal health information, and from implementing predatory billing practices,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Consumers who turn to telehealth companies for treatment expect that their sensitive health information will be handled with great care and that companies will abide by the representations they have made rather than flouting their stated policies for the sake of profits and growth. This case reflects the department’s commitment to making sure that telehealth companies follow the law and safeguard the rights of those who seek treatment from them. We will continue to work with the FTC to vigorously enforce the FTC Act, the Opioid Act and ROSCA.”
“Companies shouldn’t take shortcuts on privacy or security, or hinder patients from cancelling services they no longer want,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “By continuing this case against the company’s former CEO, the government demonstrates its commitment to seeing that executives are held accountable for their misconduct.”
Trial Attorneys Shana C. Priore, Joshua A. Fowkes, Francisco L. Unger and Amber M. Charles of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Rosaline Chan, in conjunction with staff at the FTC’s Division of Enforcement, are prosecuting the case.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov.
The claims made in the amended complaint are allegations that, if the case were to proceed to trial, the government must prove by a preponderance of the evidence.
Two Ohio Men Sentenced for Operating Illegal Gambling Businesses and Tax Fraud ConspiracyRead the Press Release
Two Ohio men were sentenced to prison for tax, gambling, money laundering, conspiracy and obstruction crimes arising out of their ownership and operation of illegal gambling businesses.
Christos Karasarides Jr., 59, of Canton, Ohio, was sentenced to serve 262 months (more than 21 years) in prison and three years of supervised release, to pay $5,541,520 in restitution to the United States and to forfeit his residence and $419,768 in cash.
Ronald DiPietro, 65, of Clinton, Ohio, was sentenced to 112 months (more than nine years) in prison and three years of supervised release and ordered to pay $4,763,520 in restitution to the United States. A jury previously convicted Karasarides and DiPietro.
According to evidence presented at trial, court documents and statements made in court, from 2009 through July 2018, Karasarides and DiPietro, who was then a Certified Public Accountant, operated multiple illegal gambling businesses together and with others including Skilled Shamrock and Redemption. At Skilled Shamrock, which operated slot machines, patrons gambled more than $34 million between 2012 and 2017 from which the business made more than $7 million in profits. Karasarides and DiPietro sought to conceal their ownership of the gambling businesses by using nominee owners and sham contracts.
Karasarides did not report or pay taxes on much of the income he received from Redemption and Skilled Shamrock. From 2012 through 2018, Karasarides did not report $2.3 million in such income or pay over $800,000 in tax.
Separately from Skilled Shamrock and Redemption, Karasarides owed the IRS millions of dollars in taxes from income he earned from another gambling business. DiPietro assisted Karasarides in thwarting the IRS’ efforts to collect the taxes owed by making false representations to the IRS – including by preparing tax returns for Karasarides – showing that Karasarides did not have the assets or income to pay his taxes. Evidence at trial also showed that Karasarides sought to make it more difficult for the IRS to seize his home by using a straw purchaser to disguise his ownership of it.
In total, Karasarides caused a tax loss to the IRS of $5.4 million and DiPietro caused a tax loss to the IRS of $4.7 million.
Karasarides and DiPietro used the criminal proceeds of their schemes to purchase luxury vehicles, maintain country club memberships and buy and sell property. Karasarides also took several extravagant gambling trips during which he made millions of dollars of bets at legal casinos throughout the country. Karasarides and DiPietro also kept large amounts of cash or silver at their homes and other properties they controlled. For instance, law enforcement seized more than $150,000 in cash from Karasarides’ house and $239,000 in cash from a safe deposit box in the name of Karasarides’ son.
Karasarides attempted to obstruct the investigation into his conduct. After a witness received a grand jury subpoena, Karasarides directed that witness to lie to authorities. Karasarides also caused false documents to be created to obstruct the investigation. And in 2022, after some of Karasarides’ co-defendants had been indicted, Karasarides caused another individual to file tax returns that falsely claimed that the individual was a partner in a business when, in fact, Karasarides was the partner in the business.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation, the Department of Homeland Security’s Homeland Security Investigations, the Department of Treasury’s Office of Inspector General, the Stark County Prosecutor’s Office, the Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force are investigating the case.
Trial Attorneys Sam Bean and Hayter Whitman of the Justice Department’s Tax Division and Assistant U.S. Attorney David Toepfer for the Northern District of Ohio prosecuted the case.
Two Ohio Men Sentenced for Operating Illegal Gambling Businesses and Tax Fraud ConspiracyRead the Press Release
Two Ohio men were sentenced to prison today for tax, gambling, money laundering, conspiracy and obstruction crimes arising out of their ownership and operation of illegal gambling businesses.
Christos Karasarides Jr. was sentenced to serve 262 months in prison and three years of supervised release, to pay $5,541,520 in restitution to the United States and to forfeit his residence and $419,768 in cash.
Ronald DiPietro was sentenced to 112 months in prison and three years of supervised release and ordered to pay $4,763,520 in restitution to the United States. A jury previously convicted Karasarides and DiPietro.
According to evidence presented at trial, court documents and statements made in court, from 2009 through July 2018, Karasarides and DiPietro, who was then a Certified Public Accountant, operated multiple illegal gambling businesses together and with others including Skilled Shamrock and Redemption. At Skilled Shamrock, which operated slot machines, patrons gambled more than $34 million between 2012 and 2017 from which the business made more than $7 million in profits. Karasarides and DiPietro sought to conceal their ownership of the gambling businesses by using nominee owners and sham contracts.
Karasarides did not report or pay taxes on much of the income he received from Redemption and Skilled Shamrock. From 2012 through 2018, Karasarides did not report $2.3 million in such income or pay over $800,000 in tax.
Separately from Skilled Shamrock and Redemption, Karasarides owed the IRS millions of dollars in taxes from income he earned from another gambling business. DiPietro assisted Karasarides in thwarting the IRS’ efforts to collect the taxes owed by making false representations to the IRS – including by preparing tax returns for Karasarides – showing that Karasarides did not have the assets or income to pay his taxes. Evidence at trial also showed that Karasarides sought to make it more difficult for the IRS to seize his home by using a straw purchaser to disguise his ownership of it.
In total, Karasarides caused a tax loss to the IRS of $5.4 million and DiPietro caused a tax loss to the IRS of $4.7 million.
Karasarides and DiPietro used the criminal proceeds of their schemes to purchase luxury vehicles, maintain country club memberships and buy and sell property. Karasarides also took several extravagant gambling trips during which he made millions of dollars of bets at legal casinos throughout the country. Karasarides and DiPietro also kept large amounts of cash or silver at their homes and other properties they controlled. For instance, law enforcement seized more than $150,000 in cash from Karasarides’ house and $239,000 in cash from a safe deposit box in the name of Karasarides’ son.
Karasarides attempted to obstruct the investigation into his conduct. After a witness received a grand jury subpoena, Karasarides directed that witness to lie to authorities. Karasarides also caused false documents to be created to obstruct the investigation. And in 2022, after some of Karasarides’ co-defendants had been indicted, Karasarides caused another individual to file tax returns that falsely claimed that the individual was a partner in a business when, in fact, Karasarides was the partner in the business.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation, the Department of Homeland Security’s Homeland Security Investigations, the Department of Treasury’s Office of Inspector General, the Stark County Prosecutor’s Office, the Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force are investigating the case.
Trial Attorneys Sam Bean and Hayter Whitman of the Justice Department’s Tax Division and Assistant U.S. Attorney David Toepfer for the Northern District of Ohio prosecuted the case.
The Office of the Pardon Attorney Releases New Presidential Pardon ApplicationRead the Press Release
The Office of the Pardon Attorney (Pardon) today released a new version of its application for presidential pardons. The new pardon application is the culmination of a year-long collaboration with the Office for Access to Justice (ATJ) to make the application more user-friendly and accessible. A pardon can help those who have completed their federal sentences receive relief from the collateral consequences of a criminal conviction.
Pardon and ATJ engaged with applicants, stakeholders and advocates to receive and incorporate their valuable feedback. Pardon and ATJ used a people-centered approach and best practices in form design to align with access to justice principles and research. The revisions are part of a department-wide effort to expand access to justice by simplifying public-facing forms and documents, consistent with the recommendations described in the 2022 and 2023 Legal Aid Interagency Roundtable Reports.
Notable changes to the pardon form include:
- Eliminating the requirement for notarized signature pages, to reduce the burden on applicants and their character references;
- Asking for less information about applicants’ histories, to streamline the application and make it easier to complete;
- Reducing legal jargon and implementing plain language throughout; and
- Adding user-focused resources, including enhanced instructions and explanations, a checklist for completion and a table of contents.
“I am very excited to announce the launch of our new-and-improved pardon form, which greatly simplifies and improves the user experience,” said Pardon Attorney Elizabeth Oyer. “It is an important piece of Pardon’s broader efforts to simplify and demystify the clemency process. It is vital that we take data-driven and forward-thinking steps to maintain a clemency process that is accessible and user-friendly. Along with our community outreach and educational visits to the Federal Bureau of Prisons, this form shows our ongoing commitment to the public to reduce the burden of applying for clemency.”
If your application for pardon is already pending, you do not need to resubmit using the new form. Pardon will continue to process any application received using either form. To learn more about the work and outreach of the Office of the Pardon Attorney, visit Office of the Pardon Attorney | Office of the Pardon Attorney (justice.gov).
Mission in Action: OJP Focuses on Community as Co-Producer of Safety and JusticeRead the Press Release
The Office of Justice Programs (OJP) recently marked its new mission statement with events and products that highlight OJP’s work to support community-centered public safety strategies.
Square One Convening, “Creating Community-Led Safety: What Does It Take?”
Assistant Attorney General Amy L. Solomon delivered keynote remarks at “Creating Community-Led Safety: What Does It Take?,” an event convened by Columbia University Justice Lab’s Square One Project. She shared OJP’s vision for delivering on its new mission statement: To provide resources, leadership and solutions to advance community safety, build community trust and strengthen the community’s role as co-producer of safety and justice.
“By explicitly embracing the community's role as co-producer of safety and justice, we’re expanding the scope of responsibility and possibility for the future of our communities,” said Assistant Attorney General Solomon. “We're bringing communities disproportionately impacted by crime, violence and victimization to the forefront of our strategy and broadening our concept of safety, from the mere absence of crime to the presence of thriving neighborhoods and greater opportunity for all.”
Solomon highlighted the ways in which OJP is bringing its mission to life, through its grantmaking portfolio, research strategies and technical assistance, and within its own organization. She noted that OJP is delivering much-needed federal funding to community-based services through initiatives dedicated to interrupting community violence, improving responses to individuals in crisis, meeting the needs of underserved victims of crime, supporting young people impacted by violence and the juvenile justice system, reimagining responses to low-level crime and more.
OJP is also opening up new pathways to funding by investing in intermediary organizations to provide both microgrants and technical assistance to smaller community-based organizations implementing high-impact safety interventions, with a focus on building organizational capacity to grow and sustain their work over the long term. Solomon noted that many of OJP’s funding opportunities offer priority consideration for projects designed to advance equity, and to applicants that can demonstrate that their capabilities and competencies are enhanced because they identify as a population-specific (or by/for) organization. Finally, she shared the ways in which OJP is bringing the perspective of community into the federal government, growing the ranks of professionals whose lived experience in the justice system is helping to guide OJP’s work.
Solomon reflected on the contributions of The Square One Project, founded in 2018 with the goal of reimagining safety and justice from the ground up. “Square One inspired us to conceive of a future that elevates the principles of fairness, equity, truth-telling, parsimony and human dignity as central to safety and justice. To consider what’s possible if our center of gravity were to shift from overreliance on the criminal legal system to the community – to the organizations, institutions and people who have a deep and vested interest in creating opportunity and improving lives in their home neighborhoods.”
Solomon concluded, “What we’re trying to achieve here is a fundamental reimagining of public safety. How do we expand the pool of resources so that community investments begin to approach the scale provided for the justice system?... At OJP, we are using the levers we’ve got to strengthen – to invest in – to support – the role of community as co-producer of safety and justice. Let us broaden our coalition and build out the community ecosystem so that it is a central and lasting part of our public safety infrastructure.”
The Square One Project event was moderated by Executive Director Katharine Huffman and also featured a panel discussion with Pastor Michael McBride of LIVE FREE USA, Jocelyn Fontaine of the Black and Brown Collective for Community Solutions to Gun Violence, Jawanna Hardy of Guns Down Friday and Chief Ernie Cato, a longtime veteran of the Chicago Police Department who is now with the Illinois Department of Corrections.
Roundtable on Supporting Communities as Co-Producers of Safety and Justice
Assistant Attorney General Solomon and Public Welfare Foundation President and CEO Candice Jones co-hosted a roundtable that brought together community leaders and philanthropic partners from across the country to identify opportunities to better support community-based organizations as key partners in the public safety infrastructure. The roundtable offered a forum for OJP leadership and philanthropic partners to hear directly from organizations on the front lines of addressing violence and other criminal justice issues, with the goal of identifying opportunities to better support and strengthen the community’s role as co-producer of safety and justice.
The CBOs who participated in the roundtable represented a wide range of community-based work, including efforts to respond to and end domestic, sexual and community violence; divert youth from the juvenile justice system; and support reentry outcomes.
New Funding Opportunities and Other Resources
Assistant Attorney General Solomon wrote a recent blog post about the tangible ways that OJP is working to advance the new mission statement and support communities as co-producers of justice. For example, the Bureau of Justice Assistance is seeking a training and technical assistance provider to support justice-focused CBOs that will primarily work with historically marginalized and underserved communities, including rural communities. The provider will help remove barriers to applying for OJP funding, while also enhancing the quality of services provided to communities disproportionality impacted by crime, delinquency, victimization and violence.
In addition, OJP is working to make solicitations more streamlined and clearer for potential applicants. The Office for Victims of Crime, for instance, is seeking to fund organizations that provide for the basic needs of crime victims, such as transportation, temporary and transitional housing, clothing, food and other items necessary for their well-being, healing or safety. This funding opportunity presents the information in simple, clear language, with an option to submit a project plan instead of a written project narrative and abstract. The project plan can be submitted through written answers to a questionnaire, a video describing the plan or a live oral presentation to OVC via video meeting.
Additional funding opportunities include the Community Based Violence Intervention and Prevention Initiative, which aims to prevent and reduce violent crime in communities; Second Chance Act programs designed to improve reentry education and employment outcomes and incubate community-based reentry programs; community-based approaches to prevent and address hate crimes; the development of community-based continuums of care for youth at risk of becoming or already involved in the juvenile justice system; the BJA Visiting Fellows Program, which invests in current and future leaders in the criminal justice field and encourages those with lived experience to apply; and the OVC Human Trafficking Fellowship Program, which will assist the anti-trafficking field in identifying and promoting culturally responsive service models and activities, and encourages those with lived experience to apply.
About the Office of Justice Programs
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime; advance equity and fairness in the administration of justice; assist victims; and uphold the rule of law. More information about OJP and its program offices – the Bureau of Justice Assistance, Bureau of Justice Statistics, National Institute of Justice, Office of Juvenile Justice and Delinquency Prevention, Office for Victims of Crime and SMART Office – can be found at www.ojp.gov.
Justice Department and FDA Announce Federal Multi-Agency Task Force to Curb Distribution and Sale of Illegal E-CigarettesRead the Press Release
The Justice Department and U.S. Food and Drug Administration (FDA) today announced the creation of a federal multi-agency task force to combat the illegal distribution and sale of e-cigarettes.
Along with the FDA and the Justice Department, the task force will bring together multiple law enforcement partners, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); U.S. Marshals Service (USMS); U.S. Postal Inspection Service (USPIS); and Federal Trade Commission (FTC) to coordinate and streamline efforts to bring all available criminal and civil tools to bear against the illegal distribution, and sale of e-cigarettes, vapes, and other electronic nicotine delivery system (ENDS) responsible for nicotine addiction among American youth. Additional agencies may join the task force in the coming weeks and months.
“Unauthorized e-cigarettes and vaping products continue to jeopardize the health of Americans — particularly children and adolescents — across the country,” said Acting Associate Attorney General Benjamin C. Mizer. “This interagency task force is dedicated to protecting Americans by combatting the unlawful sale and distribution of these products. And the establishment of this task force makes clear that vigorous enforcement of the tobacco laws is a government-wide priority.”
“The Justice Department is committed to enforcing the laws that prevent the sale and distribution of unlawful e-cigarettes,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “We will work closely with our task force partners to address this crisis with all of the enforcement tools available to us.”
“Curbing the widespread availability of illegal ENDS products is a top priority of the Justice Department’s consumer protection efforts,” said Deputy Assistant Attorney General Arun G. Rao of the Civil Division’s Consumer Protection Branch. “Together with our law enforcement partners, we look forward to advancing aggressive and innovative solutions to the unique and constantly evolving problem of illegal vaping products.”
“Enforcement against illegal e-cigarettes is a multi-pronged issue that necessitates a multi-pronged response,” said Director Dr. Brian King of the FDA’s Center for Tobacco Products. “This ‘All Government’ approach — including the creation of this new task force - will bring the collective resources and experience of the federal government to bear on this pressing public health issue.”
The 2023 National Youth Tobacco Survey found that about 2.1 million youths reported currently using e-cigarettes, which reflects a considerable decline from 5.3 million youth in 2019. However, 10% of high school students and almost 5% of middle school students reported currently using e-cigarettes, and more than 1 in 4 of those e-cigarette users reported daily e-cigarette use. Manufacturers, distributors, and retailers market a wide range of products that appeal directly to school-age users, such as candy and fruit flavors, some of which come in devices designed to be easily concealed.
Youth use of tobacco products in any form — including e-cigarettes — is unsafe. According to the CDC, nicotine poses unique dangers to young people. In addition to being highly addictive, nicotine can harm the developing adolescent brain, which continues to develop until about age 25. Young people who use nicotine may also be at risk for addiction to other drugs.
To date, the FDA has authorized the sale of 23 specific tobacco-flavored e-cigarette products and devices. These are the only e-cigarette products that currently may be lawfully marketed and sold in the United States. To date, the FDA has issued more than 1,100 warning letters to manufacturers, importers, distributors, and retailers for illegally selling and/or distributing unauthorized new tobacco products, including e-cigarettes, and has filed civil money penalty complaints against more than 55 manufacturers and 140 retailers for the manufacture and/or sale of unauthorized tobacco products. In addition, the FDA and the Justice Department have obtained injunctions against six manufacturers to stop them from manufacturing and selling unauthorized e-cigarette products.
The federal task force will focus on several topics, including investigating and prosecuting new criminal, civil, seizure, and forfeiture actions under the Prevent All Cigarette Trafficking Act of 2009 (PACT Act); the Federal Food, Drug, and Cosmetic Act (FDCA), as amended by the Family Smoking Prevention and Tobacco Control Act (TCA); and other authorities. Violations of these statutes can result in felony convictions and significant criminal fines and civil monetary penalties. They can also result in seizures of unauthorized products, which can help to make illegal e-cigarettes less accessible, including to young people. Through their participation in the task force USMS will help the FDA and the Department effectuate seizures of unauthorized e-cigarettes within the United States.
“The U.S. Marshals Service Asset Forfeiture Division stands ready to work with our task force partners in the seizure of unauthorized e-cigarettes from domestic distributors seeking to sell them unlawfully,” said USMS Director Ronald L. Davis.
The Justice Department is also collaborating with ATF and USPIS on potential criminal and civil enforcement actions under the PACT Act. The PACT Act requires online sellers of ENDS products to register with ATF and to verify the age of purchasers both at the point of sale and the point of delivery, as well as to comply with tax collection provisions and state and local laws. The task force announced today will support these actions and coordinate enforcement strategies the FDA and the Justice Department are working on with multiple agency partners.
“The PACT Act is an important tool for preventing the unlawful sale of e-cigarettes to minors online. ATF looks forward to working with other components of the Department of Justice and USPIS to enforce the law,” said ATF Director Steven M. Dettelbach.
“The U.S. Postal Inspection Service is committed to working with the task force to investigate violations of the PACT Act and other statutes that govern the distribution of e-cigarettes through the mails,” said Chief Postal Inspector Gary R. Barksdale.
Finally, the FTC, which releases reports about cigarette, smokeless tobacco, and e-cigarette marketing, and enforces various statutory and regulatory prohibitions on false and misleading advertising, will support the activities of the task force, including by sharing its knowledge about the marketplace for vaping products.
“We look forward to sharing our experience with this rapidly changing, multi-billion-dollar market through this important task force,” said Director Samuel A.A. Levine of the FTC’s Bureau of Consumer Protection.
For more information on e-cigarette regulation, including legal compliance and enforcement efforts, see the FDA’s website at www.fda.gov/tobacco-products and the ATF’s website at www.atf.gov/alcohol-tobacco/vapes-and-e-cigarettes.
Investigative Team from MDNC Receives ADL SHIELD Award for Local ProsecutionRead the Press Release
Photo provided by Anti-Defamation League of Washington, DCGREENSBORO - United States Attorney Sandra J. Hairston announced today that the Anti-Defamation League [ADL] awarded a local team of prosecutors and investigators with the group’s 2024 SHIELD Award. SHIELD stands for Service, Honor, Integrity, Excellence, Leadership and Dedication.
Assistant United States Attorneys JoAnna McFadden and Ashley Waid of the United States Attorney’s Office for the Middle District of North Carolina, along with Special Agent Samantha Oubre, Special Agent Emilie Franks, Special Agent Michael Stone, Tactical Specialist Whitney Orndorff, Intelligence Analyst Brian Bowers, Victim Specialist Shannon Meyers, of the Federal Bureau of Investigation, and Department of Justice Trial Attorney Daniel Grunert were presented with their awards during a ceremony on June 6 in Washington, D.C. The award was presented for the investigation and prosecution of Marian Hudak.
“The Hudak prosecution exemplifies our commitment to investigating and prosecuting civil rights violations in this district,” United States Attorney Hairston said today. “Targeting individuals with violence because of their race or national origin will be met with a strong federal response. We are pleased and grateful that the Anti-Defamation League recognized the extraordinary efforts of AUSAs McFadden and Waid, Trial Attorney Grunert, and the FBI agents and other personnel who pursued this case.”
Hudak was sentenced to 41 months of federal incarceration after a jury found him guilty of committing hate crimes against a Black man and a Hispanic man on separate occasions. According to evidence presented at trial, on Oct. 13, 2022, Hudak encountered a Black man, identified as J.S., while Hudak and J.S. were driving on a public street in Concord, North Carolina. After shouting racial slurs at J.S. and telling J.S. to “come here, boy,” Hudak swerved into J.S.’s lane and stopped his car in traffic, then got out of his truck and approached J.S.’s vehicle, where he continued shouting and punched J.S.’s driver’s side window multiple times. When J.S. fled, Hudak chased him to his home where he blocked egress from the parking area and shouted racial slurs at and threatened to shoot and kill J.S.
Evidence at trial also proved that, on Nov. 27, 2021, Hudak attacked his Hispanic neighbor, J.D., outside of J.D.’s home because of his nationality. Hudak shouted racially charged insults at J.D. before attacking him. Hudak punched and tackled J.D. and the jury found that J.D. suffered serious bodily injury from the attack.
Additional trial witnesses testified about Hudak’s frequent anti-Hispanic comments, both before and after the attack on J.D., and about other instances where Hudak shouted slurs at, gave the middle finger to, and aggressively drove near other minority motorists in the Concord, North Carolina area. Other evidence included a KKK flag, a racist publication, and Nazi memorabilia found in Hudak’s residence.
At the ceremony, the ADL honored law enforcement heroes who have protected the nation and communities from hate crimes and terrorist threats. The SHIELD award was created in 2010 to annually honor law enforcement for major successes in the fight against hate crimes and domestic and international terrorism. The Award’s name reflects law enforcement’s role as protectors and is also an acronym for the core values of the profession: Service, Honor, Integrity, Excellence, Leadership, and Dedication.
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Graphic Communications National Pension Plan Agrees to Repay Excess Special Financial Assistance FundsRead the Press Release
The Graphic Communications National Pension Fund (the NPF) has entered into a civil settlement agreement pursuant to which it has agreed to repay more than $8 million in excess funds that it received from the Pension Benefit Guaranty Corporation (PBGC) in connection with the PBGC’s Special Financial Assistance Program.
The American Rescue Plan Act of 2021 established the Special Financial Assistance (SFA) Program to protect millions of workers in multiemployer pension plans who faced cuts to their benefits, including potentially catastrophic benefit reductions in many cases. The SFA Program is administered by the PBGC, which was authorized to make one-time payments to certain eligible multiemployer pension plans in the amount that was projected to enable the plans to pay all benefits through 2051. Because inclusion of participants who died in the census data provided with the SFA application could alter the amount of funding that an eligible multiemployer plan would need to pay benefits in future years, the PBGC required SFA applicants to provide documentation of an independent death audit to identify deceased participants in support of plans’ SFA applications.
Despite reasonable efforts, the NPF’s census erroneously included approximately 371 deceased participants among the more than 30,000 plan participants identified in the plan’s SFA application. The erroneous inclusion of deceased participants in the NPF’s application was identified during an audit conducted by the PBGC’s Office of Inspector General (PBGC-OIG). The audit determined that as a result of the errors the NPF’s SFA award of approximately $1.5 billion was overstated by approximately $8 million. The NPF cooperated with the government’s investigation in this matter, including assisting with the actuarial analyses necessary to calculate and validate the amount of the excess funds that it received.
“The Civil Division will continue to work with PBGC to recover any excess funds paid in connection with the SFA Program,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “I commend the NPF for its cooperation with the government’s efforts to identify and quantify excess SFA Program funds, as well as its prompt repayment.”
“Correcting an inaccurate SFA payment serves everyone’s interests and gives the public greater confidence in the stewardship of taxpayer money by Federal employees,” said PBGC Inspector General Nicolas J. Novak. “We appreciate the continuing cooperation of the affected plans with the PBGC and the Justice Department’s efforts.”
“PBGC is working diligently with other plans to facilitate return of SFA funds based on inaccurate census data,” said PBGC Acting Director Ann Y. Orr. “PBGC appreciates the collaborative efforts of DOJ and PBGC-OIG involved in these recoveries.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, the PBGC-OIG and the PBGC Office of General Counsel, along with the Department of Labor and Department of Treasury. This is the second settlement involving the return of excess SFA funds received from PBGC, with combined recoveries now totaling more than $134 million.
Senior Trial Counsel Kelley Hauser of the Civil Division’s Commercial Litigation Branch handled this matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementConstruction Company Project Manager Convicted of Tax ConspiracyRead the Press Release
A federal jury convicted a Massachusetts man on Friday for conspiring to defraud the United States.
According to court documents and evidence presented at trial, Jason Pecoy, of Wilbraham, conspired with his father Kent Pecoy and Kevin Kennedy to conceal income from the IRS. Jason Pecoy was a project manager at Kent Pecoy and Sons Construction Inc., which was owned by Kent Pecoy. Kevin Kennedy operated two municipal golf courses and purchased two custom-build homes from Kent Pecoy’s company.
Specifically, the group conspired to conceal income from the IRS by dealing in cash. Jason Pecoy received at least $600,000 in cash payments from Kennedy for the purchase and construction of a custom-built home on Cape Cod. Instead of depositing most of the cash he received from Kennedy into the businesses’ bank accounts, Pecoy distributed the cash directly to vendors and subcontractors. For example, Pecoy used approximately $149,300 of that cash to pay subcontractors under the table for work performed at the Cape Cod home. Pecoy also created and maintained separate ledgers documenting Kennedy’s cash payments, false contracts and cost estimates and at his direction, false entries in the company’s accounting system to conceal the cash payments.
Jason Pecoy is scheduled to be sentenced on Sept. 12. He faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
As to his co-conspirators, Kent Pecoy pleaded guilty to related tax crimes on May 17 and is scheduled to be sentenced on Aug. 20. Kennedy was convicted and sentenced to 13 months in prison for his role in the conspiracy.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Chief Eric B. Powers of the Justice Department’s Tax Division and Assistant U.S. Attorney Neil Desroches for the District of Massachusetts are prosecuting the case.
Attorney General Merrick B. Garland Statement on FBI’s Quarterly Uniform Crime ReportRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the release of the FBI’s Quarterly Uniform Crime Report, which shows a decrease in violent crime and property crime in the first quarter of 2024 compared to the same time period last year:
“This data makes clear that last year’s historic decline in violent crime is continuing.
In the first three months of this year, violent crime has decreased by over 15 percent compared to same period last year, and murder has decreased by over 26 percent.
This continued historic decline in homicides does not represent abstract statistics. It represents people whose lives were saved — people who are still here to see their children grow up, to work toward fulfilling their dreams, and to contribute to their communities.
When I became Attorney General over three years ago, we knew that grappling with the violent crime that surged early in the pandemic would be one of the greatest challenges we would face at the Justice Department. That is why we have poured every available resource into working with our law enforcement and community partners to drive down violent crime. But we know there is so much more work to do, and that the progress we have seen can still easily slip away. So, we will continue to deploy our technological and prosecutorial resources to identify and prosecute the principal drivers of gun violence. We will continue to invest in the essential programs that allow police departments to hire more officers. We will continue to build the public trust essential for public safety. And we will continue to support the evidence-based community violence intervention initiatives that save lives.
Our work will not be done until all Americans feel safe in their communities.”
Update on Deputy Attorney General Lisa Monaco’s Justice AI ConveningsRead the Press Release
This week, Deputy Attorney General Lisa Monaco hosted the fourth convening of the “Justice AI Initiative,” which she launched earlier this year to inform the Justice Department’s AI policy, including how AI will impact the Department’s mission to uphold the rule of law, keep the nation safe, and protect civil rights. “Justice AI” brings together stakeholders across civil society, industry, academia, and law enforcement to share expertise and a wide range of perspectives on both the promise of AI and the perils of its misuse.
On Thursday, the Deputy AG welcomed organizations and advocates focused on civil rights, democracy, and technology to the Justice Department to discuss ways to strengthen the Department’s efforts to address the civil rights and civil liberties challenges posed by AI. They discussed concerns about the use of AI, algorithms, and automated systems to make critical decisions that impact individuals’ rights and opportunities — including fair and equal access to employment and housing — as well as the security of personal health information. They also highlighted the potential of AI to be used to suppress the right to vote — including by imitating trusted sources of information and proliferating deepfakes.
The Deputy AG previously met with representatives from industry in San Francisco, where she led a discussion on identifying the many ways malicious actors misuse AI and how information sharing between private industry and the government is critical to understanding and combatting the use of AI to commit crimes and threaten national security.
The Department has also convened federal, state, and local law enforcement association leaders from across the country to discuss how malicious actors are using AI to supercharge their criminal schemes, and how law enforcement officials can combat these criminal actors. They also discussed how law enforcement agencies can leverage AI to fight crime and protect the public in a manner consistent with civil rights and liberties.
The Department’s Criminal Division recently convened compliance executives to hear how companies are using AI and how compliance departments are addressing its risks. This discussion will inform updates to the Criminal Division’s Evaluation of Corporate Compliance Programs.
Additional convenings will be held over the coming months to inform the Department of Justice’s work as part of Executive Order 14110 on “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence.”
Two Charged for Involvement with Online Groups Dedicated to Monkey Torture and MutilationRead the Press Release
Two individuals were charged this week for their involvement with online groups dedicated to creating and distributing videos depicting acts of extreme violence and sexual abuse against monkeys.
Nicholas T. Dryden, of Ohio, and Giancarlo Morelli, of New Jersey, were charged with conspiracy to create and distribute so-called “animal crush videos,” and with distributing animal crush videos. Dryden is also charged with the creation of animal crush videos, as well as with production, distribution and receipt of a visual depiction of the sexual abuse of children because a minor was paid to abuse the monkeys.
According to court documents, in March and April 2023, the two co-defendants allegedly conspired to create and distribute videos depicting acts of sadistic violence against baby, adolescent and adult monkeys. The conspirators allegedly funneled money through Dryden, who then paid the minor in Indonesia to commit the requested acts on camera.
The videos alleged to have been created as part of the conspiracy included depictions of monkeys having their genitals burned, having their genitals cut with scissors, being sodomized with a wooden skewer and being sodomized with a spoon.
The conspiracy charge carries a maximum penalty of five years in prison, the charges related to the creation and distribution of animal crush videos each carry a maximum penalty of seven years in prison and the charges of producing and distributing depictions of the sexual abuse of children each carry a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Kenneth L. Parker for the Southern District of Ohio made the announcement.
The U.S. Fish and Wildlife Service and FBI investigated the case.
Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Tim Oakley for the Southern District of Ohio are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Readout of the Reproductive Rights Task Force MeetingRead the Press Release
On Thursday, June 6, Attorney General Merrick B. Garland and Acting Associate Attorney General Benjamin C. Mizer convened the Justice Department’s Reproductive Rights Task Force (RRTF) to discuss the Department’s ongoing work to protect reproductive freedoms under federal law. The RRTF, which is chaired by Acting Associate Attorney General Mizer, was created in July 2022, following the Supreme Court’s decision in Dobbs v. Jackson Women’s Health Organization.
“Protecting access to lawful reproductive care is central to the Justice Department’s responsibility to defend the civil rights of everyone in our country,” said Attorney General Garland. “I am grateful to the members of the Justice Department’s Reproductive Rights Task Force for their tireless efforts to ensure those protections. We will continue to vigorously defend the reproductive rights guaranteed to all Americans under federal law.”
“Dobbs dealt a devastating blow to reproductive freedom, and every day we continue to see that decision’s terrible consequences unfold,” said Acting Associate Attorney General Mizer. “We established the Reproductive Rights Task Force to bring a whole-of-department approach to protecting access to reproductive health care following Dobbs. I am deeply proud of the work of the task force, which works tirelessly every day to protect and advance reproductive rights for women in this country.”
During the meeting, the Attorney General and the Acting Associate Attorney General discussed the RRTF’s recent work to protect access to reproductive health care. RRTF members briefed the Attorney General and the Acting Associate Attorney General on litigation by the Civil Division and the Office of the Solicitor General to protect lawful access to reproductive services, including cases defending the Food and Drug Administration’s expert decisions regarding the safety and efficacy of the abortion drug mifepristone, ensuring that women receive the emergency care to which they are entitled under the Emergency Medical Treatment and Labor Act, and protecting the constitutional right to travel. The RRTF also discussed the work of the Office of Legislative Affairs to assist Congress in drafting legislation to codify reproductive rights, and the Civil Rights Division’s ongoing enforcement of the Freedom of Access to Clinic Entrances, or FACE, Act. Of particular note, since January 2021, the Department has brought 25 cases involving a total of 57 defendants accused of criminal FACE Act-related violations.
The Attorney General and the Acting Associate Attorney General thanked RRTF Executive Director Jodie Morse for her day-to-day leadership of the task force, thanked all RRTF members for their continued hard work, and reaffirmed the Department’s ongoing commitment to defending reproductive freedoms.
Justice Department Launches Access DOJRead the Press Release
The Justice Department announced the launch of Access DOJ, a new and innovative Department-wide initiative led by the Office for Access to Justice (ATJ) that will use human-centered design to improve access to Justice Department programs and services for all communities and stakeholders.
“The Access DOJ Initiative will provide a path for us to make the Justice Department’s services more accessible, effective, and efficient at meeting the needs of the diverse communities we serve,” said Acting Associate Attorney General Benjamin C. Mizer. “It will ensure that the Department, for the first time, has a localized hub of expertise focused on assisting components broadly with human-centered design practices.”
The Access DOJ Initiative will:
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Annually conduct high-impact projects in partnership with offices across the Justice Department to improve and streamline access to programs, services, and resources for the public;
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Provide resources, trainings, and hands-on coaching and support in methods like usability testing and writing with plain language; and
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Chair a newly launched community of practice with representatives from across the Justice Department to share successes and challenges and identify solutions to advance the work together.
“Access to Justice includes Access to the Department of Justice. In our public-facing materials, we must prioritize what makes sense for the people we serve, above technical nuances,” said ATJ Director Rachel Rossi. “This will require that lawyers and subject matter experts work with designers to get feedback from the public. We cannot be the judge of whether our materials are accessible and effective — only the people using our services can do that.”
Setting the groundwork for the launch of Access DOJ, ATJ has been partnering with Justice Department offices to employ human-centered design practices to simplify access to programs and services. This includes working with the Justice Department’s Office of the Pardon Attorney to revise the form people use to request a presidential pardon after finishing their sentence to restore their civil rights, regain their standing in the community, or improve their employment opportunities. The revisions were based on feedback from the public, usability testing, best practices in design, and access to justice research with the goal of reducing burdens on everyone involved — applicants and Justice Department staff — to promote both trust in government and fiscal responsibility.
The Access to Justice team also worked with the Office of the U.S. Trustees Program (USTP) to gather feedback on newly piloted virtual bankruptcy meetings. The partnership included engagement with legal aid providers in the pilot region who work with low-income and rural communities, leading to plans for development of a series of short videos of mock meetings to give people a preview of the meetings, demystify them, explain them in plain language, and reduce the psychological costs of going through the process unprepared.
ATJ hosted an event for Justice Department components to launch the initiative and encourage participation across the department. Additional Justice Department officials delivered remarks, including Director Steve Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), USTP Director Tara Twomey, and Deputy Pardon Attorney Kira Gillespie. The event also featured external experts who discussed their work using human-centered design and customer experience methodologies in other federal agencies as well as with state and local legal service organizations. This included Executive Director for Customer Experience Dana Chisnell of the Department of Homeland Security, the Executive Director of the Legal Design Lab at Stanford Law School Margaret Hagan, and the Managing Director of Contact Center and Customer Experience in the General Services Administration Centers of Excellence Lashanda Hodge.
The event also included a gallery walk with case studies and resources to further illustrate the concepts.
Access DOJ’s next high-impact project will focus on making it easier for communities to report actionable tips about crime or other violations of law to the department. Access DOJ will review reporting portals across the Department to ensure all communities can more effectively report crime to the department when necessary.
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Five Individuals Arrested for Defrauding Medicare of over $15M Through Sham Hospices and Money LaunderingRead the Press Release
Five individuals were arrested yesterday in Los Angeles on criminal charges related to their roles in a years-long scheme to defraud Medicare of more than $15 million through sham hospice companies and then to launder the fraud proceeds.
According to an indictment unsealed yesterday, three of the defendants—Petros Fichidzhyan, 43, of Granada Hills, California, Juan Carlos Esparza, 32, of Valley Village, California, and Karpis Srapyan, 34, of Van Nuys, California—allegedly operated a series of sham hospice companies that were purportedly owned by foreign nationals but were in fact owned by the three defendants. The defendants allegedly used the foreign nationals’ identifying information to open bank accounts, to sign property leases, and, by Fichidzhyan, to make phone calls to Medicare, and submitted false and fraudulent claims to Medicare for hospice services. In submitting the false claims, the defendants misappropriated the identifying information of doctors, claiming to Medicare that the doctors had determined hospice services were necessary, when in fact the purported recipients of these hospice services were not terminally ill and had never requested nor received care from the sham hospices. In some instances, the defendants falsely claimed that the same beneficiary received services from multiple sham hospices.
Fichidzhyan, Esparza, and Srapyan, together with defendants Susanna Harutyunyan, 38, and Mihran Panosyan, 45, both of Winnetka, California, then allegedly laundered the proceeds fraudulently obtained from Medicare. The defendants are alleged to have spent the money on real estate and vehicles, among other things.
Fichidzhyan, Esparza, and Srapyan are charged with conspiracy to commit health care fraud and aggravated identity theft. Fichidzhyan and Esparza are also charged with health care fraud. All of the defendants are charged with conspiracy to launder money and money laundering. Fichidzhyan is further charged with making false statements. If convicted, all five defendants face a maximum penalty of at least 40 years in prison. Fichidzhyan, Esparza, and Srapyan face an additional mandatory minimum of two years in prison on the aggravated identity theft count.
The charges announced today are the most recent in the Justice Department’s ongoing effort to combat hospice fraud in the greater Los Angeles area.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Acting Assistant Director in Charge Krysti E. Hawkins of the FBI Los Angeles Field Office; and Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorneys Eric C. Schmale and Sarah E. Edwards of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Court Imposes Restrictions on Alcohol Addiction Treatment Company to Protect Consumers’ Private InformationRead the Press Release
The Justice Department and the Federal Trade Commission (FTC) announced today that a federal court in Washington, D.C., has entered a settlement that prohibits alcohol addiction treatment company Monument Inc. (Monument) from misrepresenting its data privacy practices and disclosing its customers’ health information to third parties for advertising purposes, and also requires the company to take several measures to safeguard its customers’ personal information. The court also entered a $2.5 million civil penalty judgment against Monument, which is suspended due to the company's inability to pay.
A civil complaint filed today alleges that Monument violated the Federal Trade Commission Act and the Opioid Addiction Recovery Fraud Prevention Act of 2018 by misrepresenting on its alcohol addiction treatment website and elsewhere that it would not disclose its customers’ health information without their express consent and by failing to employ reasonable measures to protect its customers’ data. The complaint alleges that such failures led Monument to disclose thousands of users’ health information to third parties for advertising or other purposes.
“Treatment for substance abuse and addiction is highly personal and sensitive, and companies providing such services must be especially vigilant in safeguarding their customers’ information,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department is committed to working with the FTC to protect Americans’ sensitive information.”
“This action continues the FTC’s work to ensure strict limits on how firms handle sensitive health data, rather than putting the onus on consumers to protect themselves,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Following on the heels of actions against GoodRx, BetterHelp and Premom, the market should be getting the message that consumer health data should be handled with extreme caution.”
Senior Trial Attorney Richard Greene and Assistant Director Zachary Dietert of the Civil Division's Consumer Protection Branch are handling this matter, working in conjunction with staff at the FTC’s Division of Privacy and Identity Protection.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov.
CityMD Agrees to Pay over $12M for Alleged False Claims to the COVID-19 Uninsured ProgramRead the Press Release
City Medical of the Upper East Side, PLLC, Summit Medical Group, P.A., Summit Health Management, LLC, and Village Practice Management Company, LLC, which collectively do business as CityMD, and manage and operate approximately 177 urgent care practices in New Jersey and New York, have agreed to pay $12,037,109 to resolve allegations that they violated the False Claims Act by submitting or causing the submission of false claims for payment for COVID-19 testing to a Health Resources and Services Administration (HRSA) program for uninsured patients.
HRSA’s COVID-19 Claims Reimbursement to Health Care Providers and Facilities for Testing, Treatment, and Vaccine Administration for the Uninsured Program (the Uninsured Program) provided claims reimbursement to health care providers, generally at Medicare rates, for testing uninsured individuals for COVID-19, treating uninsured individuals with a COVID-19 diagnoses, and administering COVID-19 vaccines to uninsured individuals.
The Justice Department alleges that, from Feb. 4, 2020, through April 5, 2022, CityMD knowingly submitted or caused to be submitted false claims for payment for COVID-19 testing to the Uninsured Program for individuals who had health insurance coverage when CityMD administered those tests. The United States contends that CityMD did not adequately confirm whether those individuals had health insurance coverage before submitting their claims to the Uninsured Program, including but not limited to certain individuals for whom CityMD had health insurance cards on file. The Justice Department further contends that CityMD caused outside laboratories to submit false claims for COVID-19 testing to the Uninsured Program in connection with individuals who had health insurance coverage by issuing requisition forms erroneously indicating that patients were uninsured.
CityMD received credit in the settlement under the department’s guidelines for taking voluntary disclosure, cooperation, and remediation into account in False Claims Act cases. CityMD cooperated with the United States’ investigation by, among other things, voluntarily contracting with a third party to assist the United States in determining the amount of the losses the United States contends were caused by claims submitted by CityMD to the Uninsured Program for patients who had health insurance as described above.
“The Uninsured Program provided critical financial support for COVID-19 related testing and treatment for uninsured Americans during the height of the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement reflects the department’s commitment to ensuring that the pandemic relief programs created by Congress were used as intended.”
“Uninsured Americans who were at risk from COVID-19 were covered by emergency funding programs that made available to them the testing, vaccines, and treatments that they needed,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “The alleged misuse of these funds is something we cannot and will not tolerate. Today’s settlement ensures that the money that was obtained inappropriately will be returned to the government.”
This civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Stephen Kitzinger, a patient of CityMD. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Kitzinger v. City Practice Group of New York LLC d/b/a CityMD, Civ. No. 2:20-cv-20111-SRC-CLW (D.N.J.). Mr. Kitzinger will receive $2,046,308 as his share of the recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of New Jersey, with assistance from the Department of Health and Human Services Office of Inspector General.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across the federal government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Tips and complaints about other types of potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Trial Attorney Daniel Meyler of the Civil Division’s Fraud Section and Assistant U.S. Attorney Mark Orlowski for the District of New Jersey handled this matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementU.S. Trustee Program Updates Safeguards for Bankruptcy Funds Through Modernized Depository AgreementRead the Press Release
The Justice Department’s U.S. Trustee Program (USTP) recently updated safeguards for bankruptcy funds by introducing a revised and modernized form depository agreement for banks and financial institutions that accept bankruptcy estate deposits.
On June 3, the USTP began transmitting the new agreement to existing authorized depositories and any banks that have expressed interest in signing up. The modernized agreement reflects the evolution in the way that the USTP, Department of the Treasury and financial institutions conduct business. The agreement was last revised in 2013.
“Banks that serve as authorized depositories provide vital foundational support to the bankruptcy system by safeguarding critical recoveries,” said Director Tara Twomey of the Executive Office for U.S. Trustees. “In modernizing this agreement, the USTP remains dedicated to ensuring broad access to banking services for debtors, including those in rural and remote areas.”
The new agreement accommodates advances in technology and the reorganization of the Treasury, and it reflects changes in the methods used for safeguarding certain deposits and in applicable laws and regulations. Additionally, the new agreement aims to simplify the process for banks to become authorized depositories and streamlines two versions of the prior agreement into a single document.
The changes come as the USTP continues to strengthen important safeguards for bankruptcy estate funds following recent banking instability. As the banking turmoil unfolded, the USTP undertook a comprehensive review of its systems for monitoring the deposit and collateralization of funds by trustees and other fiduciaries whom the USTP is charged to supervise. The USTP’s policies and procedures worked as intended. Even in the absence of federal intervention, all bankruptcy funds were protected from a risk of loss except where bankruptcy courts waived the safeguards. Still, the USTP found areas where changes would be beneficial due to technological updates and modernized banking practices.
The modernization of the depository agreement is the product of a robust outreach process, including meetings with stakeholder groups and informational sessions for banks and software vendors that work with trustees.
Under bankruptcy law, trustees and other fiduciaries, including chapter 11 debtors-in-possession, must deposit or invest bankruptcy funds with banks or financial institutions that offer products insured or guaranteed by the full faith and credit of the United States. These rules protect the deposits if the bank fails. When deposits exceed applicable deposit insurance limits, banks must “collateralize” the deposits either by obtaining a bond or pledging government securities. The USTP routinely objects to attempts to waive these safeguards in chapter 11 cases.
The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.