District Not Recorded

WASHINGTON – David R. Lewalski, formerly of Gainesville, Fla., was arrested today in Manhattan on a wire fraud charge related to his alleged participation in a $30 million investment fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Robert E. O’Neill of the Middle District of Florida. 

 

According to a criminal complaint filed in U.S. District Court in the Middle District of Florida, Lewalski, 47, and his co-conspirators allegedly solicited money from investors based on false statements that Lewalski could earn the investors up to 10 percent interest per month by trading on the foreign currency (FOREX) market.  The complaint alleges that, based on these and other fraudulent representations, Lewalski and his co-conspirators received approximately $30 million from hundreds of investors in Florida and across the country.  According to the complaint, Lewalski allegedly invested only a small portion of these investor funds in trading activities and generated little if any profits trading foreign currency.  Lewalski allegedly paid “interest payments” totaling approximately $15 million to investors using other investors’ money.  Lewalski also spent lavishly on himself, his friends and his family, spending millions of dollars leasing real estate and private jets, and purchasing luxury automobiles, clothing and jewelry.

 

If convicted, Lewalski faces a maximum penalty of 20 years in prison.  A complaint is merely a formal charge and a defendant is presumed innocent unless proven guilty.

 

This case is being investigated by the U.S. Postal Inspection Service and the Florida Department of Law Enforcement, and is being prosecuted by Assistant U.S. Attorney Mandy Riedel and Trial Attorney Glenn Chernigoff with the Criminal Division’s Fraud Section, on detail from the U.S. Commodity Futures Trading Commission. 

 

Today’s charge is part of efforts being undertaken by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

 

For more information on the task force, visit StopFraud.gov.

WASHINGTON – Tyrone L. Ellis, a former civilian employee of the Department of Defense (DoD), was arrested yesterday and has been charged with conspiracy, conversion and false statements related to his alleged theft of Army Emergency Relief (AER) funds while he was employed at Camp Humphreys in the Republic of Korea, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.

Ellis, 56, of Columbus, Ga., was charged in an indictment returned on Oct. 28, 2010, in the Middle District of Georgia with one count of conspiracy, 10 counts of conversion and one count of making a false statement. He will make his initial appearance at 10:30 a.m. this morning before U.S. Magistrate Judge Stephen Hyles.

The AER is a private, non-profit organization that serves as the emergency financial assistance organization for the U.S. Army. AER’s operations are financed by voluntary contributions from active and retired soldiers during an annual fund campaign, as well as by unsolicited contributions, repayment of outstanding loans and income from reserve funds.

According to the indictment, Ellis worked as an Assistant Army Emergency Relief Officer at Camp Humphreys in 2005 and 2006. During this time, Ellis was tasked with providing AER loans and grants to service members and their families in financial need. The indictment alleges that Ellis approved grants for at least a dozen soldiers in amounts larger than they needed, and that he requested and received thousands of dollars back from the grant recipients, which he converted to his own use. The indictment also alleges that Ellis conspired with another individual to convert AER funds in the same manner. In addition, Ellis is charged with making false statements to investigators when questioned about the allegations. According to the indictment, Ellis resigned his position as an assistant AER officer in August 2006 and left Camp Humphreys.

Ellis faces up to five years in prison on the conspiracy charge; 10 years in prison for each felony count of conversion; one year in prison for the misdemeanor charges of conversion; and five years in prison on the charge of making a false statement. He also faces a $250,000 fine for each count of conspiracy, felony conversation and making a false statement. He faces a $100,000 fine on the misdemeanor charges of conversion, as well as terms of supervised release following his prison term on all charged counts.

The allegations contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty in a court of law.

This case is being prosecuted by Trial Attorneys John P. Pearson and Richard B. Evans of the Criminal Division’s Public Integrity Section, and is being investigated by the Army Criminal Investigation Division, with assistance from the U.S. Army Audit Agency.

WASHINGTON – Una empresa de transporte de carga global, así como cinco empresas y subsidiarias de servicios de gas y petróleo, han acordado resolver investigaciones de violaciones de la Ley de Prácticas Corruptas en el Extranjero [Foreign Corrupt Practices Act (FCPA)], anunciaron hoy el Departamento de Justicia y la Comisión de Títulos y Valores de EE.UU. [U.S. Securities and Exchange Commission (SEC)]. Las empresas han acordado pagar un total de $156,565,000 en multas criminales. También hoy, la SEC anunció sus acuerdos conciliatorios con estas empresas, las que incluyen devoluciones civiles, intereses y multas por un total de aproximadamente $80 millones de dólares. Estos asuntos surgieron de una investigación concentrada en alegatos de soborno en el extranjero en el ramo de los servicios de campos de petróleo.

En documentos presentados en el Tribunal Federal de Distrito en el Distrito Sur de Texas, Panalpina World Transport (Holding) Ltd., una empresa de servicios de transporte de carga global y logística con sede en Basilea, Suiza, y su subsidiaria estadounidense, Panalpina Inc., admitieron que las compañías, a través de subsidiarias y afiliadas (colectivamente, "Panalpina"), realizaron un ardid para pagar sobornos a numerosos funcionarios extranjeros en nombre de muchos de sus clientes del ramo del petróleo y el gas. Lo hicieron a fin de obviar reglas y normas locales asociadas a la importación de bienes y materiales a numerosas jurisdicciones extranjeras. Panalpina admitió que, entre 2002 y 2007, pagó miles de sobornos por un total de al menos $27 millones de dólares a funcionarios extranjeros en al menos siete países, incluidos Angola, Azerbaiján, Brasil, Kazakhstan, Nigeria, Rusia y Turkmenistán. También hoy, los clientes de Panalpina, incluidos Shell Nigeria Exploration and Production Company Ltd. (SNEPCO), Transocean Inc. y Tidewater Marine International Inc., admitieron que las compañías aprobaron o condonaron el pago de sobornos en su nombre en Nigeria y registraron falsamente los pagos de sobornos realizados en su nombre como gastos comerciales legítimos en sus libros, registros y cuentas contables.

Como parte de la solución acordada, el Departamento presentó hoy una información criminal en la que acusa a Panalpina World Transport de conspiración para violar y violación de las disposiciones contra el soborno de la FCPA. El Departamento y Panalpina World Transport acordaron resolver los cargos a través de la realización de un acuerdo de aplazamiento de enjuiciamiento. El Departamento también presentó una información criminal acusando a Panalpina Inc. de conspirar para violar las provisiones de libros y registros de la FCPA y de ayudar y secundar a ciertos clientes en la violación de las disposiciones sobre libros y registros de la FCPA. Panalpina Inc. ha aceptado declararse culpable de los cargos. Los acuerdos exigen el pago de una multa criminal de $70.56 millones de dólares.

También se presentó un información criminal hoy acusando a SNEPCO, una subsidiaria nigeriana de Royal Dutch Shell plc (conjuntamente, "Shell"), de conspiración para violar las disposiciones anti-soborno y asociadas a libros y registros de la FCPA, y con ayudar y secundar una violación de las disposiciones sobre libros y registros. Royal Dutch Shell es propietaria de un grupo global de empresas de energía y petroquímicas. Los cargos se refieren a aproximadamente $2 millones de dólares que SNEPCO pagó a sus subcontratistas a sabiendas de que parte o todo el dinero se pagaría como sobornos a funcionarios aduaneros de Nigeria por Panalpina para importar materiales y equipos a Nigeria. Para resolver la cuestión, el Departamento y Shell han realizado un acuerdo de aplazamiento de enjuiciamiento que exige, entre otras cosas, que SNEPCO pague una multa criminal de $30 millones de dólares.

Transocean Inc., una subsidiaria de Transocean Ltd (en conjunto, "Transocean") en las Islas Caimanes, fue acusada hoy en una información criminal de conspirar para violar las disposiciones anti-soborno y asociadas a libros y registros de la FCPA; violar la disposición anti-soborno de la FCPA; y ayudar y secundar en la violación de las disposiciones sobre libros y registros de la FCPA. Transocean Ltd. es un proveedor global de servicios de perforación petrolera en la costa y equipos basado en Vernier, Suiza. Los cargos se refieren a aproximadamente $90,000 dólares pagados en sobornos a agentes de transporte de carga de Transocean Inc. en Nigeria a funcionarios aduaneros de Nigeria para obviar normas aduaneras nigerianas asociadas a la importación de bienes y materiales y la importación de plataformas de petróleo de aguas profundas de Transocean a aguas nigerianas. El Departamento y Transocean han acordado realizar un acuerdo de aplazamiento de enjuiciamiento que exige, entre otras cosas, que Transocean Inc. pague una multa criminal de $13.44 millones de dólares.

El Departamento también presentó una información criminal acusando a Tidewater Marine International Inc., una subsidiaria de Tidewater Inc. (en conjunto, "Tidewater") en las Islas Caimanes, de conspirar para violar las disposiciones anti-soborno y de libros y registros de la FCPA, y violar las disposiciones sobre libros y registros de la FCPA. Tidewater Inc. es un operador global de buques de aprovisionamiento y servicio en alta mar para la exploración de energía con sede en Nueva Orleáns. Los cargos presentados contra Tidewater Marine se refieren a aproximadamente $160,000 dólares en sobornos pagados a través de sus empleados y agentes a inspectores tributarios en Azerbaijan para lograr cobros de impuestos favorables indebidos y aproximadamente $1.6 millones de dólares en sobornos pagados a través de Panalpina a funcionarios aduaneros nigerianos para inducir a los oficiales a obviar las normas aduaneras nigerianas asociadas a la importación de buques a aguas nigerianas. Para resolver la cuestión, el Departamento y Tidewater han realizado un acuerdo de aplazamiento de enjuiciamiento que exige, entre otras cosas, que Tidewater Marine pague una multa criminal de $7.35 millones de dólares.

Asimismo, en documentos presentados en el Tribunal Federal de Distrito para el Distrito Sur de Texas, Pride International Inc., una empresa con sede en Houston, y Pride Forasol S.A.S., una subsidiaria totalmente francesa de Price International (en conjunto, "Pride"), admitieron que Pride pagó un total de aproximadamente $800,000 dólares en sobornos directa a indirectamente a funcionarios gubernamentales en Venezuela, India y México. De acuerdo con el expediente judicial, se pagaron los sobornos para prolongar contratos de perforación para tres plataformas que funcionaban en alta mar en Venezuela; para lograr una decisión judicial administrativa favorable asociada a una disputa aduanera por una plataforma importada a la India; y para evitar el pago de impuestos aduaneros y multas asociados a una plataforma y equipos que operaban en México. Durante la investigación, Pride proporcionó información y ayudó significativamente en la investigación de Panalpina.

Pride International fue acusada en una información criminal presentada hoy de conspiración para violar las disposiciones anti-soborno y de disposiciones sobre libros y registros de la FCPA; violar las disposiciones anti-soborno de la FCPA; y violar las disposiciones de libros y registros de la FCPA. El Departamento y Pride International acordaron resolver los cargos a través de la realización de un acuerdo de aplazamiento de enjuiciamiento. El Departamento también presentó una información criminal acusando a Pride Forasol de conspiración para violar las disposiciones anti-soborno de la FCPA; violar las disposiciones anti-soborno de la FCPA; y ayudar y secundar para la violación de las disposiciones de libros y registros de la FCPA. Pride Forasol ha aceptado declararse culpable de los cargos. Los acuerdos exigen el pago de una multa criminal de $32.625 millones de dólares.

Bajo los términos de los respectivos acuerdos de aplazamiento de enjuiciamiento por tres años, Panalpina World Transport, Shell, Pride International, Transocean y Tidewater deben cooperar plenamente con las autoridades estadounidenses y extranjeras en cualquier investigación en curso de los pagos corruptos realizados por las compañías. Además, cada una de estas empresas debe implementar y adherir a un conjunto de obligaciones optimizadas de cumplimiento e informes empresariales.

También se anunció hoy que el Departamento y Noble Corporation, una empresa suiza, realizaron un acuerdo en el que Noble Corporation admitió haber pagado aproximadamente $74,000 dólares a un agente de transporte de carga nigeriano, reconoció que ciertos empleados sabían que algunos de los pagos serían sobornos a funcionarios aduaneros nigerianos, y admitió que la empresa registro los pagos de sobornos falsamente como gastos comerciales legítimos en sus libros empresariales, registros y cuentas.

Como parte del acuerdo de no enjuiciamiento realizado con el gobierno, Noble pagará una multa criminal de $2.59 millones de dólares. El acuerdo de no enjuiciamiento reconoce la revelación voluntaria prematura por parte de Noble, a través de la autoinvestigación de la conducta subyacente, plena cooperación con el Departamento y amplias medidas correctivas llevadas a cabo por la compañía. Como resultado de estos factores, entre otros, el Departamento acordó no enjuiciar a Noble o a sus subsidiarias por los pagos de sobornos, siempre y cuando Noble cumpla con sus obligaciones permanentes bajo el acuerdo.

Las resoluciones empresariales anunciadas hoy no solo responsabilizan a estas empresas por la conducta criminal establecida en estos instrumentos acusatorios y acuerdos, sino que también reflejan la provisión de crédito significativo y apropiado por el Departamento a estas empresas en la medida en que han voluntariamente revelado su conducta y compatible con la calidad y extensión de su cooperación.

En acciones de aplicación civil relacionadas entabladas por la SEC hoy, Panalpina Inc. acordó pagar aproximadamente $11.3 millones de dólares en devolución de ganancias; Royal Dutch Shell y una subsidiaria de EE.UU., Shell International Exploration and Production, Inc., acordaron pagar aproximadamente $18.1 millones de dólares en devolución de ganancias e intereses previos al enjuiciamiento; Transocean acordó devolver aproximadamente $7.2 millones de dólares en ganancias e intereses previos al enjuiciamiento; Tidewater Inc. acordó pagar aproximadamente $8.3 millones de dólares en devolución de ganancias, intereses previos al juicio y multas civiles; Pride International acordó pagar aproximadamente $23.5 millones de dólares en devolución de ganancias e intereses previos al juicio; Noble Corporation acordó pagar aproximadamente $5.5 millones de dólares en devolución de ganancias e intereses previos al juicio; y GlobalSantaFe Corp. acordó pagar aproximadamente $5.85 millones de dólares en devolución de ganancias e intereses previos al juicio.

Estuvo a cargo de la acusación en estos casos el Abogado Litigante Principal Stacey K. Luck de la Sección de Fraude de la División Criminal. El Jefe Auxiliar Adam G. Safwat asistió en la acusación. La Oficina Local de Washington y la Oficina Local de Houston del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)] asistieron en estas investigaciones.

El Departamento reconoce y expresa su gratitud por la significativa asistencia brindada por el personal de la SEC en el transcurso de estas investigaciones.

WASHINGTON – David Chiaradio, 28, of Westerly, R.I., was convicted today by a federal jury in Providence, R.I., of one count of distribution of child pornography and two counts of possession of child pornography, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Peter F. Neronha of the District of Rhode Island. The jury returned its verdicts after considering testimony and evidence for more than two days.

Evidence presented at trial established that in February 2006, Chiaradio distributed three child pornographic images to an undercover FBI agent using Limewire, a peer-to-peer file sharing program. FBI agents continued their investigation of Chiaradio and obtained a search warrant that was executed at Chiaradio’s home in late August 2006. During the search, agents seized a laptop and a desktop computer. The computers and various hard drives were examined by a computer forensics expert from the FBI and more than 6,000 images and videos of child pornography were discovered.

U.S. District Court Chief Judge Mary M. Lisi, who presided over the trial, scheduled a sentencing hearing to be held on March 3, 2011.

The maximum sentence for distribution of child pornography is 30 years in prison and a fine of $250,000. The maximum sentence for possession of child pornography is 10 years in prison and a fine of $250,000.

This case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly of the District of Rhode Island and Trial Attorney Andrew McCormack of the Criminal Division’s Child Exploitation and Obscenity Section. The case was investigated by the FBI’s Providence Field Office, with the assistance of FBI agents from the Innocent Images Task Force in Tulsa, Okla.

WASHINGTON - Victor Manuel Amaya was sentenced to two years in prison for employment tax fraud, the Justice Department and the Internal Revenue Service (IRS) announced today. The court also ordered Amaya to pay $319,585 in restitution to the IRS.

According to court documents, from 2004 through 2007, Amaya, who owns Amaya Contracting and Stucco Inc. (ACS), filed fraudulent employment tax returns with the IRS and caused his company to underpay its federal employment taxes. To avoid having to report all of ACS's employment tax obligations, Amaya regularly cashed checks made out to ACS at a local check cashing store instead of depositing them into the company's account. Amaya then used the cash to pay his workers, which allowed him to report lower wages and lower employment taxes due on ACS's employment tax returns.

Amaya also used the cash for materials and personal expenses. Additionally, Amaya wrote ACS checks to fictitious companies and cashed them at local check cashing stores. Amaya also used this cash to pay his workers. Amaya failed to report to the IRS approximately $2,130,568 in wages, which resulted in a tax loss to the U.S. Treasury of approximately $319,585.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and John A. DiCicco, Acting Assistant Attorney General for the Department of Justice, Tax Division, commended the IRS Special Agents who investigated this case and Tax Division Trial Attorney Matthew J. Mueller, who prosecuted the case.

WASHINGTON – Ilya Sobolevskiy, a 25-year-old resident of Maryland, was sentenced today to serve 12 months in prison and to pay a $3,000 fine for violating the civil rights of members of an Urbana, Ill., mosque, announced the Justice Department.

During a guilty plea hearing in August 2010, Sobolevskiy admitted that he sent an email to a member of the Central Illinois Mosque and Islamic Center (CIMIC), in which he threatened, among other things, that he would “do WHATEVER it takes to eradicate Islam.” Officials at CIMIC reported the threat to the FBI, which referred the case to the department’s Civil Rights Division.

“One of our most basic rights is the freedom to practice one’s faith in peace,” said Assistant Attorney General Thomas E. Perez of the Civil Rights Division. “We have no tolerance for threats of violence fueled by bigotry, and we will aggressively prosecute such actions.”

“It is a top priority of the FBI to protect the civil rights of the American people. We encourage members of the community to report all allegations of civil rights violations. The FBI will aggressively investigate these matters to ensure that our society remains free,” said Stuart R. McArthur, Special Agent in Charge of the FBI Springfield Office.

Federal Magistrate Judge David G. Bernthal, referring to the defendant’s crime as “an act of terror,” gave the defendant the maximum sentence permitted by law.

This case was investigated by the Springfield, Ill., division of the FBI, and was prosecuted by department Trial Attorney Patricia Sumner.

WASHINGTON – The United States has asked a federal court in Chicago to permanently bar John E. Rogers, a Chicago tax lawyer and former partner at Seyfarth Shaw LLP, from promoting tax shelters that allegedly use distressed Brazilian debt to illegally lower customers’ reported income, the Justice Department announced today. The suit names two of Rogers’s companies — Sugarloaf Fund LLC and Jetstream Business Limited — as additional defendants.

According to the civil injunction suit, filed in U.S. District Court in Chicago, Rogers designs and promotes the Distressed Asset Debt (DAD) and Distressed Asset Trust (DAT) tax shelters. These shelters allegedly falsely claim to enable Roger’s U.S. taxpayer-customers to use millions of dollars of purported losses from Brazilian debt to offset the customers’ unrelated U.S. income, even though the customers incur no actual losses in connection with the schemes.

 

In the DAT scheme, according to the complaint, a foreign business (typically a Brazilian retail company) essentially sells low-value, aged “distressed” debt, such as debt from bad checks, to Sugarloaf Fund, a U.S. entity that Rogers created and controls. In return Sugarloaf Fund allegedly pays the foreign company 1 to 2 percent of the debt’s face value. The complaint states that Sugarloaf Fund takes portions of the distressed debt and contributes them to multiple supposed “trusts,” also created and controlled by Rogers. Rogers then allegedly sells the “trusts” to tax shelter customers for a price pegged to the tax loss to be generated by the shelter. 

 

Rogers allegedly tells customers that the Brazilian companies are partners in Sugarloaf, and that the Brazilian companies made genuine partnership contributions to Sugarloaf, rather than sales of debt to Sugarloaf. These statements are false or fraudulent, the complaint says, because the Brazilian retailers are insulated from any profit or loss, and do not intend to become partners in Sugarloaf. Rogers also allegedly tells customers that the distressed debt has a value for federal tax purposes equal to its original face value, not what Sugarloaf paid for it, and that customers can take bad debt deductions equal to most or all of the debt’s face value, and can use those deductions to offset unrelated U.S. income. These statements also are false or fraudulent, according to the complaint, because the supposed built-in-losses were never preserved and passed on to the tax shelter customers.

 

In an example detailed in the complaint, Rogers allegedly implemented a DAT shelter for a Louisiana businessman. Rogers allegedly drafted the core transactional documents that created the trusts for the customer’s DAT, and performed all the necessary steps to implement the transaction, including contributing a pool of distressed debt supposedly worth nearly $18 million to the customer’s “trust.” According to the complaint, the customer subsequently claimed a bad-debt deduction of more than $17 million in sham losses on his 2006 federal income tax return.

 

The complaint indicates that sometime after the Internal Revenue Service (IRS) began investigating Rogers, he told his then law firm, Seyfarth Shaw LLP, that he would stop promoting the DAD and DAT schemes. But Rogers allegedly continued to promote the DAT shelter, and concealed his activities from his firm. According to the complaint, when Seyfarth Shaw LLP later discovered his deception in 2008, it required Rogers to resign.

 

The IRS listed the DAT and similar transactions as tax avoidance transactions in February 2008. This required all material advisors of DAT and similar schemes to disclose their activities to the IRS, to obtain IRS reportable-transaction numbers for their DAT transactions, and to furnish the reportable-transaction numbers to their customers. Customers would then know they were participating in a reportable transaction and that the reportable-transaction number had to be disclosed on their next-filed tax return. Under federal tax law, customers who fail to include a required reportable-transaction number with their returns are subject to substantial monetary penalties. According to the complaint, Rogers failed to file the necessary disclosures for his DAT scheme, did not obtain a reportable-transaction number and failed to furnish a reportable-transaction number to his customers.

 

Rogers’s abusive DAD and DAT schemes have generated more than $370 million in improper tax deductions for his more than 100 customers, the complaint alleges.

 

“It is particularly disturbing when a lawyer, who is supposed to help clients comply with the law, instead helps them break it, as is alleged here,” said John A. DiCicco, Acting Assistant Attorney General of the Justice Department’s Tax Division.

 

“This action is part of our overall efforts at the IRS to deter the promotion of abusive tax shelters. In fairness to the overwhelming majority of taxpayers who pay what they owe, we will continue to pursue people who use sham transactions to try to avoid paying their fair share,” said IRS Commissioner Doug Shulman.

 

Since 2001, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop the promotion of abusive or fraudulent tax fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the Justice Department website .

DALLAS – A federal court Tuesday issued a memorandum opinion and a preliminary injunction against Arthur Piner Grider, III; Asgard Avionics Corp. of Florida; and 14 other corporate defendants who operate as employee leasing companies, from violating the Internal Revenue Code, the Justice Department announced today. Court papers allege that the defendants cumulatively owe more than $100 million in unpaid payroll and unemployment taxes. Under the injunction, the defendants must timely deposit employment taxes with the Internal Revenue Service (IRS), timely file all federal tax forms, and timely pay their federal tax liabilities.

The defendants are a enjoined from paying other creditors or themselves before paying their current federal employment tax liabilities. In addition, they must provide tax deposit information to a IRS revenue officer as set forth in the injunction. The order also requires that the defendants notify the IRS in writing if they begin operating any new business. The injunction is effective immediately.

The government’s complaint alleges that Grider and his entities have a long history of pyramiding employment taxes and details the magnitude of the amounts owed – $76 million for the entities and $25 million for Grider. The complaint further alleges that defendants’ non-compliance with employment tax laws has continued through the first quarter of 2010.

WASHINGTON – The Department of Justice has scheduled three public hearings on its regulatory proposals concerning the Americans with Disabilities Act (ADA). These proposals, or Advance Notices of Proposed Rulemaking (ANPRMs), seek public comment on the possibility of revising the ADA regulations to address accessible Web information and services, movie captioning and video description, accessibility of Next Generation 9-1-1, and accessible equipment and furniture. The ANPRMs were published in the Federal Register on July 26, 2010, and the comment period for them closes on Jan. 24, 2011.

The public hearings are scheduled for the following dates and locations:

• Nov. 18, 2010, from 9:30 A.M. to 4:00 P.M., CST,
  Access Living, 115 West Chicago Avenue, Chicago
   
• Dec. 16, 2010, from 9:30 A.M. to 4:00 P.M., EST,
  U.S. Access Board, 1331 F Street, N.W., Washington, D.C.
   
• Jan. 10, 2011, from 9:30 A.M. to 4:00 P.M., PST,
  San Francisco Marriott Marquis, 55 Fourth Street, San Francisco

Entities, organizations and individuals who wish to present comments at a particular hearing are encouraged to register in advance by calling the ADA Information Line at 800-514-0301 (Voice) or 800-514-0383 (TTY) at least five business days in advance of the hearing date. Organizations should designate no more than one individual to speak on behalf of the organization. Individuals who are not able to testify in person will have the option to present their comments using a speaker telephone, telephone relay service or video relay service. The department will attempt to provide an approximate time for the receipt of comments from those who register in advance; however, persons who register in advance should report to the registration desk at the hearing at least one-half hour prior to their scheduled time in order to confirm the time and order of their presentations. Those who register to comment via speaker telephone, telephone relay service or video relay service should be available at the number they provided during pre-registration at least one-half hour before their scheduled time. Some time at the hearing will be reserved for those who do not register in advance. These persons may register on-site at the registration desk, which will open one hour before the hearing is scheduled to begin and will operate throughout the day. Time to make their presentations will be assigned when open slots are available.

Comments will be limited to five minutes per person or organization, but individuals who wish to may supplement their testimony with written statements that will be made part of the official hearing record. If the department determines that there is not enough time to hear from all those wishing to present comments, the department will select among those wishing to testify to ensure representation of a range of viewpoints and interests. A laptop computer and projection screen will be available for individuals wishing to use a PowerPoint presentation in conjunction with their testimony.

The hearing sites will be accessible to individuals with disabilities. Sign language interpreters, real-time captioning and assistive listening devices will be provided. Individuals who require other accommodations, auxiliary aids or foreign language translation should contact Linda Garrett at 202-353-0423 (TTY) or by email at [email protected] no later than one week before the date of the hearing they wish to attend. Additional information, including information about accessible public transportation and parking, will be available on the ADA Home Page at www.ada.gov. The ANPRMs are available electronically in accessible formats at www.ada.gov/anprm2010.htm.

WASHINGTON - Víctor Manuel Amaya fue sentenciado a dos años en prisión por fraude de impuestos de nómina de empleados, anunciaron hoy el Departamento de Justicia y el Servicio de Impuestos Internos [Internal Revenue Service (IRS)]. El tribunal también ordenó a Amaya que pagara $319,585 dólares en restitución al IRS.

Según el expediente judicial, entre 2004 y 2007, Amaya, propietario de Amaya Contracting and Stucco Inc. (ACS), presentó declaraciones fraudulentas de impuestos laborales a IRS e hizo que su empresa pagara menos impuestos laborales federales que los que debía. Para evitar tener que declarar todas las obligaciones tributarias laborales de ACS, Amaya habitualmente cobraba cheques a nombre de ACS en una tienda local de cobro de cheques en vez de depositarlos en la cuenta de la empresa. Luego Amaya usaba el efectivo para pagarle a sus empleados, lo que le permitía declarar menores sueldos y tener que pagar menos impuestos laborales en las declaraciones de impuestos laborales de ACS.

Amaya también usaba el efectivo para comprar materiales y cubrir gastos personales. Además, Amaya extendía cheques de ACS a empresas ficticias y los cobraba en tiendas locales de cobro de cheques. Y también usaba este efectivo para pagarle a sus empleados. Amaya dejó de informar al IRS aproximadamente $2,130,568 dólares en sueldos, lo cual resultó en pérdidas tributarias para el Tesoro de EE.UU. de aproximadamente $319,585 dólares.

Wifredo A. Ferrer, Fiscal Federal para el Distrito Sur de Florida, y el Secretario de Justicia Auxiliar Interino John DiCicco, de la División de Impuestos del Departamento de Justicia, felicitaron a los Agentes Especiales de IRS a cargo de la investigación en el caso y al Abogado Litigante de la División de Impuestos Matthew J. Mueller, que estuvo a cargo de la acusación en el caso.

WASHINGTON – A federal judge in Baltimore today sentenced a former Baltimore Police Department officer to serve five years in prison for violating the civil rights of a juvenile arrestee, the Justice Department announced today. Gregory Mussmacher was convicted by a jury in May 2010 for physically abusing a juvenile in his custody and for obstructing justice to cover up what he had done.

The abuse incident occurred in April 2004, when the defendant used his police-issued baton to strike a handcuffed and shackled juvenile in the head and face. Following the incident in 2004, Mussmacher was tried for assault and was convicted in state court. However, that conviction was later reversed, and federal authorities assumed responsibility for the case. Prosecutors with the Civil Rights Division of the Department of Justice conducted an independent investigation of the matter and brought charges against three officers, including Mussmacher, for civil rights and obstruction violations. The other two officers, Guy Gerstel and Wayne Thompson, pleaded guilty before trial and testified against Mussmacher.

“The power that accompanies a police officer’s badge does not give the officer the right to violate the civil rights of those in his or her custody,” said Thomas E. Perez, Assistant Attorney General for the Civil rights Division. “The Justice Department will aggressively prosecute any officer who abuses their power and violates the public trust in this way.”

“Any police officer who abuses a suspect, writes false reports and obstructs justice must be held accountable,” said Rod J. Rosenstein, U.S. Attorney for the District of Maryland.  “This case is an embarrassment to the many officers who earn our confidence by performing their duties with honor and integrity.”

 

Gerstel, who pleaded guilty to lying to the FBI during the investigation, will be sentenced on Nov. 18, 2010. Thompson, who pleaded guilty to a misdemeanor obstruction charge, was sentenced on Sept. 30, 2010, to serve 6 months of home detention.

This case was investigated by the Baltimore Division of the FBI, and was prosecuted by Civil Rights Division Attorneys Forrest Christian, Jeff Blumberg and Kevonne Small, with the support of the U.S. Attorney’s Office for the District of Maryland.

WASHINGTON – James Bradley Branscum, Tony Branscum, both of Salado, Ark., and Curtis Coffee of Batesville, Ark., were indicted this week by a federal grand jury on charges related to their roles in burning a cross in the yard of an African-American resident in Salado on Aug. 28, 2010.

In the three-count indictment, the three were charged with one count of conspiracy to interfere with the housing rights of another, one count of interfering with the housing rights of another and one count of using fire in the commission of a felony.

If convicted, the three face a maximum punishment of 30 years in prison and a $750,000 fine.

The case was investigated by the FBI with cooperation from Independence County, Ark., Sheriff Alan Cockrill and the Criminal Investigation Division of the Independence County Sheriff‘s Office. The case will be prosecuted by Trial Attorney Cindy Chung from the Civil Rights Division of the U.S. Department of Justice and Assistant U.S. Attorney John Ray White from the U.S. Attorney ’ s Office for the Eastern District of Arkansas.

The charges set forth in an indictment are merely accusations and the defendants are presumed innocent until proven guilty.

MIAMI – Axel Rafael Mercado pleaded guilty to one count of tax evasion before U.S. District Court Judge Patricia A. Seitz in the Southern District of Florida, the Department of Justice and the Internal Revenue Service (IRS) announced today. The court set sentencing for Jan. 13, 2011.

According to court documents, from 2005 through 2007, Mercado, who owns Mercado Enterprises Inc., attempted to evade a large part of his company’s federal employment taxes. To avoid his employment tax obligations, Mercado would have checks written to shell companies that were supposedly legitimate subcontractors hired to do work for Mercado Enterprises, but which in fact did no work. Mercado would then have those checks cashed at a local check-cashing store that was aware of the scheme and would use the cash to pay his workers.

Additionally, Mercado had checks written to a legitimate construction company, but that company also performed no work. Mercado did not report, withhold or pay the employment taxes on any of these cash wages. Mercado also caused his company to fail to file employment tax returns.

Mercado pleaded guilty to a one-count information charging him with tax evasion. All told, Mercado’s actions resulted in a tax loss of at least $352,605. Mercado faces a maximum of five years in prison and has agreed to pay restitution to the IRS of $352,605.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and John A. DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division, commended the IRS Special Agents who investigated this case and Tax Division Trial Attorneys Jason H. Poole and Matthew J. Mueller, who prosecuted the case.

WASHINGTON — An Atlanta grand jury returned an indictment today against the former president and chief executive officer of a Lakewood, N.J.-based manufacturer and distributor of food service equipment hardware, for conspiring to allocate customers for the sale of commercial and institutional food service equipment hardware, including walk-in refrigeration equipment, the Department of Justice announced.

The one-count felony indictment, returned in U.S. District Court in Atlanta, charges Thomas E. Carr with participating in a conspiracy to allocate customers for the sale of food service equipment hardware sold in the United States and elsewhere beginning in or about early 2004 and continuing at least through December 2008. The purpose of the charged conspiracy was to suppress and eliminate competition in the sale of the food service equipment hardware manufactured or sold by Carr and his co-conspirators.

Food service equipment hardware includes fabricated parts, such as cafeteria hardware, equipment legs and casters, and fabrication supplies, and walk-in refrigeration components, such as metal racks, door hinges, handles, latches, closers and panel fasteners.

According to the indictment, Carr and co-conspirators agreed during meetings, telephone and e-mail discussions to allocate customers of food service equipment hardware; not to compete for one another’s protected customers or to submit intentionally high prices or bids to certain customers; and to exchange prices to customers so as not to undercut one another’s prices. As part of the conspiracy, Carr and co-conspirators submitted bids and sold food service equipment hardware at collusive and noncompetitive prices.

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

Today’s charge is the third to arise from an ongoing federal antitrust investigation of customer allocation in the food service equipment hardware industry. On May 19, 2010, Kason Industries Inc. and its former president, Peter A. Katz, pleaded guilty to the same customer allocation conspiracy charge. On Aug. 17, 2010, Kason Industries was sentenced to pay a criminal fine of $3.3 million. Katz is scheduled to be sentenced on Jan. 5, 2011. The investigation is being conducted by the Antitrust Division’s Atlanta Field Office and the FBI’s Atlanta Office.

Anyone with information concerning customer allocation or other anticompetitive conduct in the food service equipment hardware industry should contact the Antitrust Division’s Atlanta Field Office at 404-331-7100 or visit www.justice.gov/atr/contact/newcase.htm.

WASHINGTON - Oddie Tribble, a former police officer with the Kershaw County, S.C., Sherriff’s Office, was charged today with violating the civil rights of an arrestee on Aug. 5, 2010.

The indictment alleges that Tribble was a sergeant with the Kershaw County Sherriff’s Office at the time of the incident and that Tribble willfully deprived the victim of his right to be free from excessive force when he struck the victim with his police issued baton. As a result, the victim suffered a fractured leg.

If convicted, Tribble faces a maximum penalty of 10 years in prison and a $250,000 fine.

An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.

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

MIAMI - Axel Rafael Mercado se ha declarado culpable de un cargo de evasión tributaria ante la Juez Federal de Distrito Patricia A. Seitz en el Distrito Sur de Florida, anunciaron hoy el Departamento de Justicia y el Servicio de Impuestos Internos [Internal Revenue Service (IRS)]. El tribunal programó la lectura de la sentencia para el 13 de enero de 2011.

De acuerdo con el expediente judicial, de 2005 a 2007, Mercado, propietario de Mercado Enterprises Inc., intentó evadir una gran parte de los impuestos federales de nómina de empleados de su compañía. Para evitar sus obligaciones de impuestos de nómina de empleados, Mercado hacía emitir cheques a empresas fantasma que eran supuestos subcontratistas contratados para realizar trabajo para Mercado Enterprises, pero que, en realidad, no realizaban ningún trabajo para la empresa. Luego, Mercado cambiaba los cheques en una tienda local de cambio de cheques que sabía del ardid y que usaba el dinero en efectivo para pagar a sus trabajadores.

Asimismo, Mercado hacía emitir cheques a una empresa de construcciones legítima, pero dicha empresa también no realizaba ningún trabajo. Mercado no informó, retuvo o pagó los impuestos de nómina de empleados sobre cualquiera de estos sueldos en efectivo. Mercado también hizo que su compañía dejara de presentar declaraciones de impuestos al empleo.

Mercado se declaró culpable de una información de un cargo que lo acusaba de evasión tributaria. Como se dijo, las acciones de Mercado resultaron en una pérdida tributaria de al menos $352,605 dólares. Mercado enfrenta un máximo de cinco años en prisión y ha aceptado pagar una restitución de $352,605 dólares al IRS.

Wifredo A. Ferrer, Fiscal Federal para el Distrito Sur de Florida, y el Secretario de Justicia Auxiliar Interino John DiCicco, de la División de Impuestos del Departamento de Justicia, felicitaron a los Agentes Especiales de IRS a cargo de la investigación en el caso y a los Abogados Litigantes de la División de Impuestos Jason H. Poole y Matthew J. Mueller, que estuvo a cargo de la acusación en el caso.

WASHINGTON – Benjamin Haskell was sentenced by U.S. District Judge Michael A. Ponsor in Springfield, Mass., to nine years in prison and three years of supervised release for his role in the 2008 burning of the Macedonia Church of God in Christ, a predominately African-American Church, on the morning after President Barack Obama was elected as the first African-American President of the United States. In addition, Haskell will pay more than $1.7 million in restitution including $123,570.25 to the Macedonia Church.

On June 16, 2010, Haskell, 24, of Springfield, pleaded guilty to conspiring to injure, oppress, threaten and intimidate the mostly African-American parishioners of the Macedonia Church in the free exercise of the right to hold and use their new church building, which was under construction, and to damaging the parishioners’ new church building through arson and obstructing their free exercise of religion because of their race, color and ethnic characteristics.

At the earlier plea hearing, a prosecutor told the court that had the case proceeded to trial, the government’s evidence would have proven that in the early morning hours of Nov. 5, 2008, within hours of President Barack Obama being elected, Haskell and his co-conspirators agreed to burn down, and did burn down, the Macedonia Church’s newly constructed building where religious services were to be held. The building was 75 percent completed at the time of the fire, which destroyed nearly the entire structure, leaving only the metal superstructure and a small portion of the front corner intact. Investigators determined that the fire was caused by arsonists who poured and ignited gasoline on the interior and exterior of the building.

Haskell confessed to the crime and admitted that prior to the presidential election, he and his co-conspirators used racial slurs against African-Americans and expressed anger at the possible election of Barack Obama as the first African-American President. Haskell admitted that after Obama was declared the winner of the election, he and his co-conspirators walked through the woods behind the Macedonia Church to scout out burning it down. Then, in the early morning hours of Nov. 5, 2008, Haskell and his co-conspirators went back to the church, poured gasoline inside and outside of the church, and ignited the gasoline.

"The freedom to practice the religion that we choose without discrimination or hateful acts is among our nation’s most cherished rights," said Thomas E. Perez, Assistant Attorney General in charge of the Justice Department’s Civil Rights Division. "As seen here today, the Department will prosecute anyone who violates that right to the fullest extent of the law."

"The burning of the Macedonia Church because of racial hatred and intolerance was a vicious attack on one of our most cherished freedoms - to worship in the religion of our choice safely and without fear of discrimination," said U.S. Attorney for the District of Massachusetts Carmen Ortiz. "The successful investigation, prosecution and punishment of those who committed this hateful act is a clear statement that law enforcement will do all in its power to protect our citizens’ civil rights."

"While the Bureau of Alcohol, Tobacco and Firearms (ATF) is charged with investigating some of the most violent crimes, I consider the arson to be one of the most serious and dangerous offenses. Not only was this case about the burning of a house of worship, it cut to the very heart of our most valued rights, that of religious freedom. I want to acknowledge all of our partners who assisted in bringing the individuals responsible for this fire to justice," said ATF Special Agent in Charge Guy Thomas.

"Today’s sentencing represents just one more step toward closure and healing, not only for the victims of this hate crime, but for the Springfield community as a whole. The FBI, along with its federal, state and local law enforcement partners, remains committed to protecting each and every citizen’s civil rights, and will aggressively investigate any violation of those rights, bringing the perpetrators to justice," said Richard DesLauriers, Special Agent in Charge of the FBI.

The case was prosecuted by Assistant U.S. Attorneys Paul H. Smyth and Kevin O’Regan of the District of Massachusetts and Nicole Lee Ndumele, Trial Attorney in the Department of Justice’s Civil Rights Division.

WASHINGTON – All Nippon Airways Co. Ltd. (ANA) has agreed to plead guilty and to pay a $73 million criminal fine for its role in two separate conspiracies to fix prices in the air transportation industry, the Department of Justice announced today.

According to a two-count felony charge filed today in U.S. District Court for the District of Columbia, Japan-based ANA engaged in a conspiracy to fix one or more components of cargo rates charged for international air cargo shipments from at least as early as April 1, 2000, until at least Feb. 14, 2006. ANA is also charged with engaging in a conspiracy to fix unpublished passenger fares on tickets purchased in the United States from at least as early as April 1, 2000, until at least April 1, 2004. Under the plea agreement, which is subject to court approval, ANA has also agreed to cooperate with the department’s ongoing antitrust investigation.

ANA transports a variety of cargo shipments, such as heavy equipment, perishable commodities and consumer goods, on scheduled international flights, including to and from the United States. ANA also transports passengers on scheduled flights within Japan and internationally, including to and from the United States. ANA typically offered unpublished passenger fares to travel agents for purchase by certain consumers.

According to the charges, ANA carried out the conspiracies by agreeing during meetings and other communications on certain components of the cargo rates to be charged for shipments on routes between the United States and Japan, and on unpublished passenger fares to be charged on tickets purchased in the United States. As part of the conspiracies, ANA levied cargo rates and unpublished passenger fares in accordance with the agreements reached, and monitored and enforced adherence to the agreed-upon cargo rates and unpublished passenger fares.

ANA is charged with two counts of price fixing in violation of the Sherman Act, which carries a maximum fine for corporations of $100 million for each violation committed after June 22, 2004, and $10 million for violations committed before that date. The maximum fine for each count may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Including today’s charge, as a result of this investigation, a total of 19 airlines and 14 executives have been charged in the Justice Department’s ongoing investigation into price fixing in the air transportation industry. To date, more than $1.6 billion in criminal fines have been obtained and four executives have been sentenced to serve prison time. Charges are pending against the remaining 10 executives.

Today’s charge is the result of a joint investigation into the air transportation industry being conducted by the Antitrust Division’s National Criminal Enforcement Section, the FBI’s Washington Field Office, the Department of Transportation’s Office of Inspector General and the U.S. Postal Service’s Office of Inspector General. Anyone with information concerning price fixing or other anticompetitive conduct in the air transportation industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.htm, or call the FBI’s Washington Field Office at 202-278-2000.

WASHINGTON – A fired information technology director for Transmarx LLC, a Richmond, Va., company, was sentenced today to 27 months in prison for hacking into his former employer’s website, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride of the Eastern District of Virginia.

On June 29, 2010, Darnell H. Albert-El, 53, of Richmond, pleaded guilty to one count of intentionally damaging a protected computer without authorization. Albert-El was sentenced today by Senior U.S. District Judge Robert E. Payne in the Eastern District of Virginia. Albert-El was also ordered to pay $6,700 in restitution to Transmarx.

According to court documents, in June 2008, Transmarx terminated Albert-El from his position as their information technology director. During his employment, Albert-El had administrator-level access to the Transmarx computer network, which included the company website that was hosted on a computer system located in Suwanee, Ga. In pleading guilty, Albert-El admitted that on July 25, 2008, he used a personal computer and an administrator account and password to access the computer hosting the Transmarx website. After accessing the computer, Albert-El knowingly caused the transmission of a series of commands that intentionally caused damage without authorization to the computer by deleting approximately 1,000 files related to the Transmarx website. In pleading guilty, Albert-El admitted that he caused the damage because he was angry about being fired. Albert-El’s actions caused more than $6,000 in losses to Transmarx.

This case was prosecuted by Special Assistant U.S. Attorney for the Eastern District of Virginia Thomas Dukes, who is also a Senior Counsel with the U.S. Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section. This case was investigated by the FBI.

WASHINGTON – Todd Alan Cook, 24, of Wichita Falls, Texas, was sentenced today to 18 months in prison by U.S. District Court Judge T.S. Ellis III for selling more than $1 million worth of pirated computer software through the Internet, in violation of criminal copyright infringement laws, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Neil H. MacBride for the Eastern District of Virginia and John Morton, Department of Homeland Security’s Director of U.S. Immigration and Customs Enforcement.

 

Cook was also sentenced to three years of supervised release and was ordered to pay restitution in the amount of $599,771. Cook pleaded guilty on March 11, 2010, to criminal copyright infringement in the U.S. District Court in Alexandria, Va.

 

According to court documents, from July 2006 through May 2008, Cook, his father Robert D. Cook and another individual operated several websites that sold large volumes of counterfeit software with a combined retail value of approximately $1 million. Cook admitted that he and his co-conspirators used these websites to sell downloadable counterfeit software without authorization from the copyright owners. Robert Cook pleaded guilty on March 11, 2010, to one count of conspiracy to commit criminal copyright infringement and is scheduled to be sentenced before Judge Ellis on Dec. 3, 2010.

This case is part of the Department of Justice’s ongoing initiative to combat online commercial counterfeiting and piracy. Including Todd Cook’s guilty plea, the department has obtained 46 convictions involving online auction and commercial distribution of counterfeit software.

Today’s sentencing is an example of the type of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce/.

The cases were prosecuted by Trial Attorneys Marc Miller and Tyler G. Newby of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jay V. Prabhu for the Eastern District of Virginia. The cases were investigated by the U.S. Immigration and Customs Enforcement’s National Intellectual Property Rights Coordination Center with substantial assistance provided by the Office of the Special Agent-in-Charge in Dallas. The Wichita Falls Police Department assisted in the investigation.

WASHINGTON – A securities attorney and a former stock broker were sentenced today to 188 months and 151 months in prison, respectively, for their roles in an extensive pump-and-dump stock manipulation scheme, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Thomas Scott Woodward of the Northern District of Oklahoma. The two defendants were also ordered to forfeit more than $43 million.

G. David Gordon, a securities attorney, and Richard Clark, a businessman and former stock broker, both of Tulsa, Okla., were convicted by a federal jury in the Northern District of Oklahoma on May 3, 2010. Gordon was found guilty on one count of conspiracy to commit wire fraud, securities fraud and money laundering nine counts of wire fraud; five counts of securities fraud; five counts of money laundering and one count of making a false statement to the U.S. Securities and Exchange Commission (SEC) in connection with the pump-and-dump scheme.  Clark was found guilty on one count of conspiracy, seven counts of wire fraud, five counts of securities fraud and one count of money laundering.  Gordon, 48, and Clark, 62, were originally charged in a 24-count indictment unsealed on Feb. 10, 2009.

According to evidence presented at trial, between April 2004 and December 2006, Gordon Clark and other conspirators devised and engaged in a scheme to defraud investors known as a "pump and dump," in which they manipulated three publicly traded stocks. The evidence at trial established that the conspirators obtained approximately $43 million in proceeds from the manipulation of the three penny stocks.  A penny stock is a common stock that trades for less than $5 per share in the over the counter market, rather than on national exchanges.   Two companies based in Tulsa at the time of the scheme were among those whose stock was manipulated: Deep Rock Oil & Gas Inc., and Global Beverage Solutions Inc., formerly known as Pacific Peak Investments.  Clark is the former chief executive officer of Global Beverage. The third company, National Storm Management Group Inc., is based in Glen Ellyn, Ill.   According to evidence presented at trial, Gordon and Clark executed the scheme by obtaining a majority of the free-trading shares of stock they intended to manipulate, using fraudulent and deceptive means to acquire the stock and/or remove the trading restrictions on the shares they obtained.

Evidence at trial showed that the defendants hid and "parked" their shares with various nominees, such as friends, relatives or other entities that they owned and controlled. Subsequently, they engaged in coordinated trading in order to create the appearance of an emerging market for these stocks, after which they conducted massive promotional campaigns in which unsolicited fax and e-mail "blasts" were sent to millions of recipients.  According to evidence at trial, these blasts touted the respective stocks without accurately disclosing who was paying for the promotions, omitted that the defendants intended to sell their shares, and induced unsuspecting investors to purchase stock in the companies.  E-mail and fax blasts promoting two companies, National Storm and Deep Rock Oil & Gas, touted investment opportunities purportedly created by Hurricane Katrina. Evidence at trial showed that the defendants and their nominees obtained significant profits by selling large amounts of shares after they had artificially inflated the stock price.  For each of the three manipulated stocks, the defendants’ sell-off caused declines of the stock price and left legitimate investors holding stock of significantly reduced value.

"The scheme that sent these two individuals to prison was basic in its goal – to create profits at the expense of unknowing victim investors," said Assistant Attorney General Lanny A. Breuer of the Criminal Division.  "Not only did the defendants defraud investors, but they also exploited the tragedy of Hurricane Katrina.  We will not allow our stock markets to be hijacked by people intent on artificially manipulating them."

"Mr. Gordon used his expertise as a securities lawyer and Mr. Clark used his experience as a former stock broker to exploit unsuspecting investors of millions of dollars," said U.S. Attorney Woodward. "The investing public must depend upon the integrity of our financial markets. Today’s sentence sends a strong message that securities professionals who illegally manipulate our financial markets will be caught and prosecuted to the full extent of the law."

Gordon was also convicted of one count of wire fraud and one count of obstruction of justice in connection with a fourth penny stock, that of International Power Group Ltd., based in New Jersey.  

The February 2009 indictment also charged Dean Sheptycki, 43, at the time a resident of Florida and the Bahamas; and Dallas-area resident Joshua Wayne Lankford, 36, for their participation in the scheme. Sheptycki and Lankford remain fugitives.  An indictment is merely a charge and defendants are presumed innocent until proven guilty.  Four other individuals have pleaded guilty in related cases.

The case is being prosecuted by Trial Attorney Andrew Warren of the Criminal Division’s Fraud Section, Assistant U.S. Attorney Catherine Depew for the Northern District of Oklahoma, and Special Assistant U.S. Attorney Kevin Muhlendorf, who is detailed to the U.S. Attorney’s Office from the SEC.  The case is being investigated by the Internal Revenue Service (IRS) Criminal Investigation Division, the FBI and the U.S. Postal Inspection Service.

Today’s sentences are part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

For more information on the task force, visit www.StopFraud.gov.

WASHINGTON – The United States has reached a settlement with Rocky Mountain Instrument Company (RMI) to resolve claims that the manufacturer violated the False Claims Act, the Justice Department announced today. The Lafayette, Colo.-based company is alleged to have submitted claims for payment to various Defense Department prime contractors. The contractors, it is alleged, in turn claimed reimbursement from the government for optical and laser products manufactured overseas using sensitive technical data exported by RMI in violation of the Arms Export Control Act and International Traffic in Arms Regulations.

On June 23, 2009, RMI, a manufacturer of optical components used in laser and imaging applications, filed a petition for bankruptcy under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Colorado. To settle the False Claims Act allegations, RMI has agreed to pay the United States $1 million as part of its bankruptcy reorganization. This amount is in addition to a $1 million criminal forfeiture and five year probationary term ordered in connection with RMI’s June 22, 2010, plea of guilty to knowingly and willfully exporting defense articles without a license in United States v. Rocky Mountain Instrument Company, 10-cr-00139-WYD-01 (D. Colo.).

"Some foreign countries and terrorist organizations are actively seeking sensitive U.S. technology and equipment to advance their weapons systems and other programs," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "We are committed to vigorous enforcement of our export control laws, all of which are designed to keep America’s critical technology from falling into the wrong hands."

"Rocky Mountain Instrument Company deals in sensitive technology and equipment, some of which is being used in Iraq and Afghanistan," said John Walsh, U.S. Attorney for the District of Colorado.  "Companies involved in exporting sensitive technology should take note that if they violate the law there will be financial consequences."

This case was investigated as part of a National Procurement Fraud Initiative. In October 2006, the Deputy Attorney General announced the formation of a National Procurement Fraud Task Force designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs.  The Procurement Fraud Task Force is chaired by the Assistant Attorney General for the Criminal Division and includes the Civil Division, the U.S. Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as others brought by members of the task force, demonstrate the Justice Department’s commitment to helping ensure the integrity of the government procurement process.

WASHINGTON – Platinum One Contracting, located in Capitol Heights, Md., its president, Anthony Wright, and Capitol Contractors, also located in Capitol Heights, and its president, Vernon J. Smith III, have agreed to pay the United States $200,000 to settle claims that they used false statements to obtain contracts from the Department of Defense, the Justice Department announced today. The contracts had been set aside for companies that qualified for the Small Business Administration’s (SBA) 8(a) business development program, as well as for businesses that qualified for the Historically Underutilized Business Zone (HUBZone) program.

Under the SBA’s 8(a) business development program, a business owned and controlled by socially and economically disadvantaged individuals can apply for certification from the SBA as an 8(a) business. A business certified as an 8(a) contractor can obtain certain preferences during the contracting process, and can bid on contracts that the agency has set aside for qualified 8(a) businesses. A business can remain in the 8(a) program for up to nine years.

Under the HUBZone program, companies that maintain their principal office in a designated HUBZone and employ 35 percent of their workforce from a HUBZone, among other requirements, can apply to the SBA for certification as a HUBZone small business company. A HUBZone company can then use this certification when bidding on government contracts. In certain cases, government agencies will restrict competition for a contract to HUBZone-certified companies.

The United States alleged that Platinum One and Anthony Wright falsely represented to the SBA, the Navy and the Army that Platinum was controlled by a socially and economically disadvantaged individual. The government’s investigation found that Platinum One was actually controlled by Vernon J. Smith III, who is not socially or economically disadvantaged. The

government alleged that Smith used Platinum’s 8(a) status to continue Capitol Contractor’s business operations after Capitol’s own 8(a) status expired in 2002. As a result of these false representations, Platinum obtained contracts from the Navy and the Army.

The United States also alleged that Platinum One and Anthony Wright falsely represented to the SBA and other government agencies that Platinum maintained its principal office in a designated HUBZone location. In fact, Platinum actually operated out of offices owned by Capitol that were not located in a HUBZone. Platinum One did not qualify for the HUBZone program, yet because of its false statements to the SBA and the Air Force, it obtained contracts that had been set aside by the Air Force for qualified HUBZone companies.

"Those who seek to obtain government contracts intended for businesses run by socially or economically disadvantaged individuals or for companies located in areas that need jobs must play by the rules," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "We will take action against those who use false statements to cheat both the government and the companies and communities that should have received the valuable benefits."

"This case is one of a series that the government has pursued for false claims made to obtain HUBZone, 8(a), and other set-aside contracts. The SBA Office of Inspector General will continue to aggressively pursue and seek criminal or civil fraud prosecution of false statements made to obtain preferential contracting and other government benefits," said SBA Inspector General Peggy E. Gustafson.

"This case represents the cooperative effort of SBA’s Offices of the General Counsel and the Inspector General and the Department of Justice to uncover and remedy fraud in our procurement programs," said SBA General Counsel Sara Lipscomb.

Assistant Attorney General West thanked the Justice Department’s Civil Division, the SBA Office of General Counsel, and the SBA Office of Inspector General for the collaboration that resulted in the settlement announced today.

WASHINGTON – The Justice Department announced today that its Civil Rights Division plans to deploy more than 400 federal observers and department personnel to 30 jurisdictions in 18 states for the Nov. 2, 2010, general election.

Although state and local governments have primary responsibility for administering elections, under the federal voting rights laws, the Civil Rights Division is charged with and committed to protecting the rights of all citizens to access the ballot on Election Day.

In the days leading up to and throughout Election Day, Civil Rights Division staff members will be available at a special toll-free number to receive complaints related to ballot access (1-800-253-3931) (TTY line 1-877-267-8971), including allegations of voter intimidation or coercion targeted at voters because of their race, color, national origin or religion. In addition, individuals may also report complaints, problems or concerns related to voting via the Internet. Forms may be submitted through a link on the department web page: www.justice.gov/

Allegations of voter fraud are handled by the 94 U.S. Attorneys’ Offices across the country and the Criminal Division’s Public Integrity Section. Complaints may be directed to any of the local U.S. Attorneys’ Offices, the local FBI offices or the Public Integrity Section at 202-514-1412.

Since the passage of the Voting Rights Act of 1 965, the department has regularly sent observers and monitors around the country to protect voters ’ rights. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group. In addition, the act requires certain covered jurisdictions to provide language assistance during the election process. Under the Voting Rights Act, the department is authorized to ask the Office of Personnel Management to send federal observers to areas that have been certified for coverage by a federal court or the Attorney General. The department also may send monitors from its own staff to elections in other jurisdictions.

On Election Day, federal observers will monitor polling place activities in 16 jurisdictions:

• Autauga County Ala.
• Bethel , Alaska
• Apache and Navajo Counties Ariz.
• Riverside County Calif.
• Randolph County G a.
• Kane County Ill.
• Salem County (Penns Grove), N.J.;
• Cibola and Sandoval Counties N.M.
• Cuyahoga County , Ohio
• Shannon County ; S.D.; and
• Dallas , Fort Bend, Galveston and Williamson Counties, Texas.

Justice Department personnel will monitor the election in an additional 14 jurisdictions: 

• Maricopa County Ariz.
• Alameda County , Calif.
• Seminole County Fl a.
• Honolulu , Hawaii
• Neshoba County , Miss.;
• Colfax County Neb.
• Passaic County N.J.
• Orange County N.Y.
• Lorain County , Ohio
• Philadelphia Pa.
• Bennett and Todd Counties , S.D.;
• Shelby County Tenn. ; and
• Harris County, Texas.

The observers and department personnel will gather information on whether voters are subject to different voting qualifications or procedures on the basis of race, color, or membership in a language minority group; whether jurisdictions are complying with the minority language provisions of the Voting Rights Act; whether jurisdictions permit voters to receive assistance by a person of his or her choice if the voter is blind, has a disability, or is unable to read or write; whether jurisdictions allow voters with disabilit ies to cast a private and independent ballot; and whether jurisdictions comply with the provisional ballot requirements of the Help America Vote Act. To assist in these inquiries, the department has deployed observers and monitors who speak Spanish and a variety of Asian and Native American languages. Both the federal observers and department personnel will coordinate monitoring activities, and department attorneys maintain contact with local election officials.

More information about the Voting Rights Act and other federal voting and election-related laws is available on the Civil Rights Division ’s web site at www.usdoj.gov/crt/voting

WASHINGTON – El Departamento de Justicia anunció hoy que la División de Derechos Civiles planea distribuir más de 400 observadores federales y personal del Departamento a 30 jurisdicciones en 18 estados para la elección general del 2 de noviembre de 2010.

Si bien los gobiernos estatales y locales tienen la principal responsabilidad de administrar las elecciones, bajo las leyes electorales federales, la División de Derechos Civiles tiene la responsabilidad y el compromiso de proteger los derechos de todos los ciudadanos a acceso a la votación el Día de Elecciones.

En los días anteriores al Día de Elecciones a lo largo del mismo, miembros del personal de la División de Derechos Civiles estarán disponibles en un número de teléfono con llamada sin cargo para recibir quejas relacionadas con el acceso a la votación (800) 253-3931, línea TTY (877) 267-8971, incluidos alegatos de intimidación o coerción de electores debido a su raza, color origen nacional o religión. Además, las personas también pueden denunciar quejas, problemas o inquietudes asociadas al voto a través del Internet. Se pueden presentar formularios a través de un enlace en el portal del Departamento: www.justice.gov/

Se ocupan de los alegatos de fraude electoral las 94 Fiscalías Federales de todo el país y la Sección de Integridad Pública de la División Criminal. Se pueden dirigir quejas a cualquiera de las Fiscalías Federales locales, las oficinas locales del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)] o la Sección de Integridad Pública al (202) 514-1412.

Desde que se promulgó la Ley de Derechos Electorales en 1 965, el Departamento ha enviado regularmente a observadores y controladores a todo el país para proteger los derechos de los electores. La Ley de Derechos Electorales prohíbe la discriminación en el proceso de elecciones con base en raza, color o pertenencia a un grupo de idioma minoritario. Además, la ley exige que ciertas jurisdicciones cubiertas provean asistencia idiomática durante el proceso de elecciones. Según la Ley de Derechos Electorales, el Departamento está autorizado a solicitar a la Oficina de Administración de Personal que envíe observadores federales a áreas con cobertura certificada por un tribunal federal o por el Secretario de Justicia de los Estados Unidos. El Departamento también puede enviar observadores de su propio personal a elecciones en otras jurisdicciones.

El Día de las Elecciones, los observadores federales observarán las actividades de los lugares de votación en 16 jurisdicciones:

• Condado de Autauga, Ala.
• Bethel, Alaska;
• Condados Apache y Navajo, Ariz.
• Condado de Riverside, Calif.
• Condado de Randolph Ga.;
• Condado de Kane Ill.
• Condado de Salem (Penns Grove), N.J.;
• Condados de Cibola y Sandoval, N.M.
• Condado de Cuyahoga, Ohio;
• Condado de Shannon; S.D.; y
• Condados de Dallas, Fort Bend, Galveston y Williamson, Texas.

Personal del Departamento de Justicia observarà las elecciones en 14 jurisdicciones adicionales: 

• Condado de Maricopa, Ariz.;
• Condado de Alameda, Calif.
• Condado de Seminole Fla.;
• Honolulu, Hawai;
• Condado de Neshoba, Miss.;
• Condado de Colfax Neb.
• Condado de Passaic N.J.
• Condado de Orange N.Y.
• Condado de Lorain, Ohio;
• Filadelfia Pa.
• Condados de Bennett y Todd, S.D.;
• Condado de Shelby Tenn.; y
• Condado de Harris, Texas.

Los observadores y el personal del Departamento reunirán información sobre si los electores están sujetos a distintas calificaciones o procedimientos electores con base en raza, color o pertenencia a un grupo de idioma minoritario; si las jurisdicciones están cumpliendo con las disposiciones de idioma minoritario de la Ley de Derechos Electorales; si las jurisdicciones permiten que los electores reciban asistencia de una persona de su elección si el elector es ciego, discapacitado o no sabe o está imposibilitado de leer o escribir; si las jurisdicciones permiten que electores con discapacidades emitan un voto privado e independiente; y si las jurisdicciones cumplen con las exigencias de voto provisional de la Ley Ayude a los Estados Unidos a Votar. Para ayudar con estas consultas, el Departamento ha destacado a observadores y consultores que hablan Español y una variedad de idiomas asiáticos e indígenas estadounidenses. Tanto los observadores federales como el personal del Departamento coordinarán actividades de observación, y abogados del Departamento mantienen contacto con autoridades electorales locales.

Para obtener más información sobre la Ley de Derechos Electorales y otras leyes federales asociadas a elecciones y votación, visite el portal de la División de Derechos Civiles en www.usdoj.gov/crt/voting

WASHINGTON – A Philadelphia man has pleaded guilty for his role in organizing and financing a network of high-tech, indoor marijuana grow facilities stretching from Florida to Connecticut, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Zane David Memeger for the Eastern District of Pennsylvania and Special Agent in Charge John J. Bryfonski of the Drug Enforcement Administration’s (DEA) Philadelphia Field Office.

 

Anthony Bui, 57, of Philadelphia, the owner of Asian Fish Inc., of Egg Harbor, N.J., pleaded guilty yesterday in U.S. District Court in the Eastern District of Pennsylvania to conspiracy to manufacture more than 1,000 marijuana plants, conspiracy to distribute more than 1,000 kilograms of marijuana, and conspiracy to launder monetary instruments. Bui was indicted on April 8, 2009.

According to court documents, on June 30, 2005, one of Bui’s marijuana grow facilities in Staley, N.C., caught fire. When volunteer firefighters arrived, they discovered that Bui and his associates were in the process of converting a former chicken warehouse into a massive marijuana grow operation. The firefighters then called the Randolph County, N.C., Sheriff’s Department. Deputy sheriffs arrested Bui and two associates, and also seized more than 600 marijuana plants and tens of thousands of dollars worth of equipment.

 

Additional investigation by DEA agents led to the discovery of three additional marijuana grow facilities in Jacksonville, Fla., New Britain, Conn., and Birdsboro, Penn. According to court documents, Bui set up the facility in New Britain for his son, and his son’s friend. According to court documents, each of Bui’s facilities cost up to $100,000 to set up and equip with sophisticated lighting, irrigation and ventilation systems. The facilities were designed to produce millions of dollars worth of marijuana each year.

 

For example, according to court documents, the facility in Birdsboro was capable of producing 25 pounds of marijuana every few weeks. Each pound of marijuana could be sold for approximately $2,500. On June 25, 2007, DEA special agents executed a search warrant at the Birdsboro house. According to court documents, the entire house had been turned into a marijuana grow facility. The first floor bedroom contained the nursery for the youngest plants, with another room on the first floor serving as a secondary grow room with mid-level plants. The entire basement had been converted into a final grow room for the most mature plants. Each room had been outfitted with specialized lighting and other materials to maximize the plants’ growth.

 

According to court documents, Bui used the proceeds from his marijuana distribution activities to finance his marijuana manufacturing operations. In addition, Bui used his commercial fishing company, Asian Fish, to disguise the source of the funds for the marijuana grow facilities. Bui invested tens of thousands of dollars from Asian Fish to purchase property and equipment for these and other marijuana grow facilities across the eastern seaboard.

 

To date, more than a dozen members of Bui’s organization have been successfully prosecuted.

 

At sentencing, scheduled for Jan. 11, 2011, at 11:00 a.m., Bui faces a maximum sentence of life in prison and a mandatory minimum prison sentence of 10 years on the manufacturing conspiracy charge and on the distribution charge, as well as a fine of up to $4 million per count. He faces a maximum prison sentence of 20 years on the conspiracy to launder monetary instruments charge, as well as a fine of up to $500,000. Each count also carries a possible term of supervised release following his prison term.

 

The case was prosecuted by Trial Attorney Robert J. Livermore of the Criminal Division’s Organized Crime and Racketeering Section. The case was investigated by special agents from the DEA, with assistance from Immigration and Customs Enforcement; U.S. Customs and Border Patrol; the Randolph County Sheriff’s Department; the Birdsboro Police Department; the New Britain Police Department; the East Hartford, Conn., Police Department; and the Pennsylvania State Police.

WASHINGTON – John T.C. Yeh, the owner of Viable Communications Inc., and his brother, Joseph Yeh, the former vice president for corporate strategy and second in charge for Viable, pleaded guilty today to engaging in a conspiracy to defraud the Federal Communications Commission’s (FCC) Video Relay Service (VRS) program, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and John G. Perren, Acting Assistant Director in Charge of the FBI’s Washington Field Office.

John Yeh, 63, and Joseph Yeh, 65, pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton, N.J., to conspiracy to commit mail fraud. John and Joseph Yeh were indicted on Nov. 19, 2009, along with Anthony Mowl, Viable’s former assistant vice president of business development; Donald Tropp, Viable’s former human resources manager; and the Viable corporate entity. The defendants are alleged to have submitted a total of approximately $55 million in VRS claims to the FCC.

In pleading guilty, John and Joseph Yeh admitted that beginning in approximately fall 2007, they conspired with others to pay individuals to make fraudulent VRS phone calls using Viable’s VRS service. According to the pleas, John and Joseph Yeh paid Mowl and Tropp, who then would pay others to make the fraudulent phone calls using Viable’s VRS service. Viable then submitted the fraudulent call minutes to the FCC and was paid approximately $390 per hour for all VRS calls that Viable processed.

According to the indictment, VRS is an online video translation service that allows people with hearing disabilities to communicate with hearing individuals through the use of interpreters and Web cameras. A person with a hearing disability who wants to communicate with a hearing person can do so by contacting a VRS provider through an audio and video Internet connection. The VRS provider, in turn, employs a video interpreter to view and interpret the hearing disabled person’s signed conversation and relay the signed conversation orally to a hearing person. VRS is funded by fees assessed by telecommunications providers to telephone customers, and is provided at no cost to the VRS user.

At sentencing, scheduled for Feb. 9, 2011, John and Joseph Yeh each face a maximum sentence of 20 years in prison, a fine of $250,000 and mandatory restitution and forfeiture.

Mowl and Tropp pleaded guilty in January 2010 to one count of conspiracy to commit mail fraud. Co-defendant Viable is awaiting trial on the charges in the indictment. An indictment is merely an accusation, and the defendant is presumed innocent until and unless proven guilty at trial beyond a reasonable doubt.

In addition to the indictment charging the Yehs, Mowl, Tropp and Viable, five other indictments were unsealed on Nov. 19, 2009, charging an additional 22 people with engaging in a scheme to steal millions of dollars from the FCC’s VRS program.  The indictments charge owners and employees of the following six companies with engaging in a scheme to defraud the FCC’s VRS program:

• Viable Communications Inc. of Rockville, Md.;
• Master Communications LLC of Las Vegas;
• KL Communications LLC of Phoenix;
• Mascom LLC of Austin, Texas;
• Deaf and Hard-of-Hearing Interpreting Services Inc. (DHIS) of New York and New Jersey;
• Innovative Communication Services for the Deaf Corp. (ICSD) of Miami Lakes, Fla.; and
• Deaf Studio 29 of Huntington Beach, Calif.

These cases are being prosecuted by Deputy Chief Hank Bond Walther and Trial Attorneys Brigham Cannon and Robert Zink of the Criminal Division’s Fraud Section, with the investigative assistance of the FBI’s Washington Field Office, the U.S. Postal Inspection Service and the FCC Office of Inspector General.

WASHINGTON — A Miami grand jury returned an indictment today against four former airline executives of competing air cargo carriers for participating in a conspiracy to fix surcharges on air cargo shipments from the United States to South and Central America following Hurricanes Katrina and Rita, the Department of Justice announced today.

The one-count indictment, returned today in U.S. District Court in Miami, charges Guillermo "Willy" Cabeza, George Gonzalez, Rodrigo Hernan Hidalgo and Luis Juan Soto with conspiring to suppress and eliminate competition by agreeing to impose an increase to their fuel surcharges on air cargo shipped from the United States to locations in South and Central America. Each former airline executive is charged with participating in the conspiracy beginning in or around late September 2005 until at least November 2005.

According to the indictment, Cabeza, Gonzalez, Hidalgo and Soto, along with co-conspirators, carried out the conspiracy by engaging in discussions, including at a meeting in an office in the area of Miami’s Kendall-Tamiami Executive Airport, and agreeing to impose an increase to the fuel surcharge applied on flights from the United States to South and Central America. As part of the conspiracy, Cabeza, Gonzalez, Hidalgo, Soto and their co-conspirators engaged in communications to implement and monitor the agreement and accepted payments at collusive and noncompetitive rates.

Cabeza is the former president of a Miami-based air cargo carrier, Gonzalez is the former chief commercial officer of a Peruvian air cargo carrier, Hidalgo is the former vice president of sales and marketing of a Miami-based air cargo carrier and Soto is the former president of a Miami-based air cargo carrier.

Air cargo carriers transport a variety of cargo shipments, such as heavy equipment, perishable commodities and consumer goods, on scheduled international flights.

Cabeza, Gonzalez, Hidalgo and Soto are charged with price fixing in violation of the Sherman Act, which carries a maximum penalty for each individual of 10 years in prison and a $1 million fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

A total of 18 airlines and 14 executives, including the four individuals charged today, have been charged in the Justice Department’s ongoing investigation into price fixing in the air transportation industry. To date, more than $1.6 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time. Charges are pending against 10 executives, including the four individuals charged today.

Today’s charge is the result of a joint investigation into the air transportation industry being conducted by the Antitrust Division’s National Criminal Enforcement Section and the Chicago Field Office, the FBI’s field offices in Miami and Washington, the Department of Transportation’s Office of Inspector General and the U.S. Postal Service’s Office of Inspector General. Anyone with information concerning price fixing or other anticompetitive conduct in the air transportation industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.htm, or call the FBI’s Miami Field Office at 305-654-1918.

WASHINGTON – Joseph Barringer, 55, the owner of a Florida pool cue company, pleaded guilty today in federal court in Orlando to violating the Endangered Species Act in connection with the illegal export of African elephant ivory through an online auction site.

Barringer, the owner of Cue Components, located in New Smyrna Beach, Fla., manufactured custom pool cues and parts, including parts made from elephant ivory. Although his company’s Web page stated that he did not sell oversees because it was illegal, he sold ivory laden pool cues to an undercover police officer of the London Metropolitan Police (Scotland Yard) who was working in coordination with special agents from the U.S. Fish and Wildlife Service and U.S. Immigration and Customs Enforcement.

A search warrant was executed at the offices of Cue Components and the defendant’s home. Federal agents seized 197 pounds of elephant ivory and cut ivory pieces, according to documents filed in court, including 24 elephant tusk tips. Agents also seized more than 1,800 Cuban cigars which are considered smuggled because they are prohibited in the U.S. and can only be brought into the country via clandestine means.

According to the plea agreement, there is not evidence enough to establish whether or not the ivory was illegally smuggled into the United States, although the defendant made a practice to obtain statements from sellers indicating that the ivory he purchased was lawful. However, according to papers filed in court, Barringer sent an email in November 2007 to his customers, including the foreign undercover police officer stating: "We’re loaded up and I do mean loaded up with beautiful Elephant ivory right now. We have 6 pairs of tusks sitting here (actually in storage). We’ve been buying and hoarding it because we don’t know when or where the next ones will come from. And for some reason, we’ve been fortunate in buying a lot of tusks this past year. I think we are to the point where we can now safely sell in some quantity."

Barringer was charged with a misdemeanor violation of the Endangered Species Act for knowingly engaging in trade of ivory specimens, contrary to the provisions of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), and without a CITES export permit and re-export certificate as a result of his sale of the pool cue containing ivory to the undercover officer in England. The maximum penalty carries a maximum sentence of one year of imprisonment, one year of supervised release, and a fine of up to $100,000, or twice the gross gain accruing from the crime.

The African elephant is listed as a threatened species under the U.S. Endangered Species Act and is also protected by the CITES, an international treaty regulating trade on endangered species to which the United States is a party. The global demand for elephant ivory led to devastating declines in the number of these giant animals, particularly in the 1970s and 1980s. Despite international efforts to control the ivory trade and stop the decline of elephant populations, prices and demand remain high, thus causing continued elephant poaching and illegal ivory finding its way into international and domestic markets.

The Barringer investigation was conducted by special agents of the U.S. Fish & Wildlife Service and U.S. Immigration and Customs Enforcement with assistance from London Metropolitan Police in London. The case is being prosecuted by Senior Trial Attorney Richard A. Udell of the U.S. Department of Justice Environmental Crimes Section and Assistant U.S. Attorney Bruce Ambrose of the U.S. Attorney’s Office for the Middle District of Florida, Orlando Division.

WASHINGTON – Joseph Barringer, 55, el propietario de una empresa de tacos de billar de Florida, se declaró culpable hoy en el tribunal federal en Orlando de violación de la Ley de Especies en Extinción en conexión con la exportación ilegal de marfil de elefante africano a través de un portal de subastas en el Internet.

Barringer, el propietario de Cue Components, ubicada en New Smyrna Beach, Fla., fabricaba tacos de billar y piezas personalizadas, incluidas piezas hechas de marfil de elefante. Si bien la página de su empresa en Internet indicaba que no vendía al exterior porque era ilegal, vendió tacos de billar con adornos de marfil a un agente de la policía encubierto de la Policía Metropolitana de Londres (Scotland Yard) quien se encontraba trabajando en coordinación con agentes especiales del Servicio de Peces y Vida Silvestre de EE.UU. y el Servicio de Inmigración y Control de Aduanas de EE.UU.

Se ejecutó una orden de allanamiento en las oficinas de Cue Componentes y el hogar del demandado. Agentes federales confiscaron 197 libras de marfil de elefante y piezas cortadas de marfil, de acuerdo con el expediente judicial, incluidos 24 puntas de colmillos de elefante. Los agentes también confiscaron más de 1,800 cigarros cubanos, los que se consideran contrabandeados, ya que están prohibidos en EE.UU. y solo pueden ser ingresados al país a través de medios clandestinos.

Según el acuerdo de declaración de culpabilidad, no existen pruebas suficientes para establecer si el marfil fue o no contrabandeado ilegalmente a los Estados Unidos, aunque el demandado contaba con declaraciones de los vendedores indicando que el marfil que había comprado era legal. Sin embargo, de acuerdo con el expediente judicial, Barringer envió un mensaje de correo electrónico en noviembre de 2007 a sus clientes, incluido el agente de policía extranjero encubierto, en el que indicaba que: "Estamos repletos, realmente repletos, de bellísimo marfil de elefante en este momento. Tenemos 6 pares de colmillos aquí mismo (en depósito, en realidad). Venimos comprando y almacenando porque no sabemos cuándo o de dónde vendrán los próximos. Y, por algún motivo, tuvimos la suerte de comprar muchos colmillos este año. Creo que llegamos a un punto en el que podemos vender cierta cantidad".

Barringer fue acusado de una violación menor de la Ley de Especies en Extinción por, a sabiendas, dedicarse al comercio de especímenes de marfil, contrario a las disposiciones de la Convención sobre Comercio Internacional de Especies en Extinción de Flora y Fauna Silvestres [Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)], y sin un permiso de exportación y certificado de reexportación de CITES como resultado de su venta del taco de billar que contenía marfil al agente encubierto en Inglaterra. La pena máxima conlleva una sentencia máxima de un año en prisión, un año de libertad bajo supervisión y una multa de hasta $100,000 dólares, o el doble de las ganancias brutas recibidas a través del delito.

El elefante africano figura en la lista de especies con peligro de extinción bajo la Ley de Especies en Extinción de EE.UU. y también es protegido por CITES, un tratado internacional que regula el comercio de especies en extinción del que Estados Unidos es parte. La demanda global del marfil de elefante llevó a reducciones devastadores de la cantidad de estos animales gigantes, especialmente en las décadas de 1970 y 1980. A pesar de los esfuerzos internacionales por controlar el comercio del marfil y detener la disminución de las poblaciones de elefantes, los precios y la demanda siguen siendo altos, provocando la caza ilegal de elefantes y el comercio internacional y doméstico del marfil.

La investigación de Barringer fue conducida por agentes especiales del Servicio de Peces y Vida Silvestre de EE.UU. y el Servicio de Inmigración y Control de Aduanas de EE.UU. con asistencia de la Policía Metropolitana de Londres en Londres. Están a cargo de la acusación en el caso el Abogado Litigante Principal Richard A. Udell de la Sección de Delitos Ambientales del Departamento de Justicia de EE.UU. y el Fiscal Federal Auxiliar Bruce Ambrose de la Fiscalía Federal para el Distrito Medio de Florida, División Orlando.

WASHINGTON — Un gran jurado en Miami emitió un acusación formal hoy contra cuatro ex ejecutivos de compañías aéreas de transportadoras de carga competidoras por participar en una conspiración para fijar sobrecargos en envíos de carga aérea de los Estados Unidos a América del Sur y América Central después de los Huracanes Katrina y Rita, anunció hoy el Departamento de Justicia.

La acusación formal compuesta por un cargo y emitida hoy en el Tribunal Federal de Distrito en Miami, acusa a Guillermo "Willy" Cabeza, George Gonzàlez, Rodrígo Hernàn Hidalgo y Luis Juan Soto de conspiración para contener y eliminar la competencia al acordar un aumento en sus sobrecargos de combustible en carga aérea enviada de los Estados Unidos a localidades de América del Sur y América Central. Se acusa a cada ex ejecutivo de compañía aérea de participar en la conspiración a partir de alrededor de fines de septiembre de 2005 hasta fines de noviembre de 2005.

De acuerdo con la acusación formal, Cabeza, Gonzàlez, Hidalgo y Soto, junto con coconspiradores, llevaron a cabo una conspiración al deliberar al respecto, incluido en una reunión en una oficina en el área del Aeropuerto Ejecutivo Kendall-Tamiami de Miami y acordar imponer un aumento al sobrecargo por combustible aplicado en vuelos de los Estados Unidos a América del Sur y Central. Como parte de la conspiración, Cabeza, Gonzàlez, Hidalgo, Soto y sus coconspiradores llevaron a cabo comunicaciones para implementar y observar el acuerdo y aceptaron pagos a tarifas ilegales y no competitivas.

Cabeza es el ex presidente de una transportadora aérea de carga con sede en Miami, Gonzàlez es el ex director comercial principal de una empresa de transporte de carga aérea peruana, Hidalgo es el ex vicepresidente de ventas y mercadeo de una transportadora de carga aérea con sede en Miami y Soto es el ex presidente de una transportadora de carga aérea con sede en Miami.

Las empresas de transporte aéreo de carga transportan distintos tipos de carga, tales como equipos pesados, productos perecibles y bienes de consumo, en vuelos internacionales programados.

Se acusa a Cabeza, Gonzàlez, Hidalgo y Soto de fijar precios en violación de la Ley Sherman, la que conlleva una sentencia máxima para cada persona de 10 años en prisión y una multa de $1 millón de dólares. La multa máxima puede aumentar al doble de las ganancias originadas en el delito o el doble de las pérdidas sufridas por las víctimas del delito, si cualquiera de dichas sumas es superior a la multa máxima legal.

Un total de 18 compañías aéreas y 14 ejecutivos, incluidas las cuatro personas acusadas hoy, han sido acusados en la investigación en curso del Departamento de Justicia de la fijación de precios en el ramo del transporte aéreo. Hasta la fecha, se han impuesto más de $1.6 billones de dólares en multas criminales y cuatro ejecutivos han sido sentenciados a sentencias en prisión. Existen cargos pendientes contra 10 ejecutivos, incluidas las cuatro personas acusadas hoy.

El cargo de hoy es el resultado de una investigación conjunta del ramo del transporte aéreo realizada por la Sección Nacional de Aplicación Criminal de la División Antimonopolios y la Oficina Local de Chicago, las oficinas locales del FBI en Miami y Washington, la Oficina del Inspector General del Departamento de Transporte y la Oficina del Inspector General del Servicio Postal de EE.UU. Se insta a cualquier persona con información sobre fijación de precios o cualquier otra conducta anticompetitiva en el ramo del transporte aéreo que llame a la Sección Nacional de Aplicación Criminal de la División Antimonopolios al (202) 307-6694 o visite www.justice.gov/atr/contact/newcase.htm, o llame a la Oficina Local de Miami el FBI al (305) 654-1918.

WASHINGTON — A Miami grand jury returned an indictment today against two executives of Cargolux Airlines International S.A., a Luxembourg-based corporation, for participating in a conspiracy to fix and coordinate certain surcharges on air cargo shipments to and from the United States, the Department of Justice announced today.

The indictment, returned today in U.S. District Court in Miami, charges Ulrich Ogiermann, president and CEO of Cargolux, and Robert Van de Weg, senior vice president of sales and marketing of Cargolux, with conspiring with others to suppress and eliminate competition by fixing and coordinating certain surcharges, including security and fuel surcharges, charged to customers located in the United States and elsewhere for air cargo shipments including to and from the United States. According to the indictment, Ogiermann is charged with participating in the conspiracy from at least as early as October 2001 until at least February 2006. Van de Weg is charged with participating in the conspiracy from at least as early as December 2003 until at least February 2006, said the department.

Air cargo carriers transport a variety of cargo shipments, such as heavy equipment, perishable commodities and consumer goods, on scheduled international flights.

According to the indictment, Ogiermann, Van de Weg and co-conspirators carried out the conspiracy by communicating and agreeing to fix and coordinate certain surcharges to be imposed on cargo shipments to and from the United States, and agreeing not to pay commissions on those surcharges. As part of the conspiracy, Ogiermann, Van de Weg and their co-conspirators monitored the surcharge agreements and accepted payments at collusive and noncompetitive rates.

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

A total of 18 airlines and 14 executives, including Ogiermann and Van de Weg, have been charged in the Justice Department’s ongoing investigation into price fixing in the air transportation industry. To date, more than $1.6 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time. Charges are pending against 10 executives, including Ogiermann and Van de Weg.

Today’s charge is the result of a joint investigation into the air transportation industry being conducted by the Antitrust Division’s National Criminal Enforcement Section and the Atlanta Field Office, the FBI’s Atlanta Field Office, the Department of Transportation’s Office of Inspector General and the U.S. Postal Service’s Office of Inspector General. Anyone with information concerning price fixing or other anticompetitive conduct in the air transportation industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.htm, or call the FBI’s Atlanta Field Office at 404-679-9000.

In commemoration of Domestic Violence Awareness Month, the White House today highlighted unprecedented coordination and cooperation across the entire government to provide services for and protect victims of domestic and sexual violence and hold perpetrators accountable drawing attention to key initiatives of the Department of Justice. 

“It has been this administration’s commitment to ensure law enforcement has the resources necessary to combat violence against women and bring offenders to justice,” said Attorney General Eric Holder. “These crimes devastate lives, families and communities, but I’ve never been more hopeful about our ability to make meaningful progress in ending violence against women.”‪

“In the 16 years since the Violence Against Women Act (VAWA) passed, we have witnessed a sea change in our nation’s response to domestic violence and countless lives have been saved as a result,” said Susan Carbon, Director of the department’s Office of Violence Against Women.  “Today we reaffirm our commitment to building upon this work and ensuring that the needs of victims are met, and offenders are held accountable.”

The White House today highlighted the following initiatives of the Department of Justice:   

• The Defending Childhood Initiative was launched by Attorney General Holder on Sept 23, 2010 to protect children from the harmful consequences of experiencing and witnessing violence The goals of the initiative are to prevent children’s exposure to violence as victims and witnesses, mitigate the negative effects experienced by children exposed to violence, and develop knowledge about and increase awareness of this issue.

• The Sexual Assault Kit Backlog Action Research Project, an initiative sponsored by the Department of Justice Office of Justice Programs National Institute of Justice (NIJ), was launched to identify long term solutions to eliminate the ba cklog of untested sexual assault kits that have not yet been submitted to a crime laboratory.  The first phase in this effort will be the awarding of up to $200,000 to “action research” teams in up to five jurisdictions that currently have a backlog of 500 or more untested sexual assault kits.  The jurisdictions receiving these awards will use the funds to create teams composed of researchers, law enforcement, crime lab directors, prosecutors and victim advocates, who will audit their jurisdiction’s rape kit backlog.  The teams will explore the reasons for the backlog and then develop a plan to tackle the problem.  In the second phase of the project, NIJ will award up to $4 million for sites to implement their plans.

• Today, in partnership with the Family Violence Prevention Fund and other national organizations, the Office on Violence Against Women is launching a new virtual resource for employers to address the impacts of domestic violence in the workplace. Workplaces Respond to Domestic and Sexual Violence: A National Resource Center provides information, resources, tools, and technical assistance to employers and labor organizations to facilitate and encourage safer and more effective responses to employees who are victims of domestic, sexual and dating violence or stalking. The website launches today at: www.workplacesrespond.org .

• Attorney General Holder announced today that he has re-chartered the National Advisory Committee on Violence Against Women, as a discretionary federal advisory committee to provide advice and recommendations to the Department of Justice and the Department of Health and Human Services on how to improve the nation’s response to violence against women, with a specific focus on successful interventions with children and teens who witness and/or are victimized by domestic violence or sexual assault.  The committee includes highly regarded advocates, justice system and child welfare professionals, and researchers.

• Today, the Department of Justice Office on Violence Against Women, in partnership with the National Council of Juvenile and Family Court Judges, released new tools for communities to improve enforcement of protective orders. Civil Protection Orders:  A Guide for Improving Practice will keep victims and their children safe by providing guidance to advocates, attorneys, judges, law enforcement officers and prosecutors to ensure that protective orders are issued, served and enforced throughout the United States. The guide in available online at: www.ncjfcj.org/images/stories/dept/fvd/pdf/cpo_guide.pdf

• Today, the Department of Justice, with assistance from the White House, is launching Access to Justice for Domestic Violence Victims, a pilot project to encourage more commitment from the private bar to provide pro bono legal services to victims of domestic violence.  Beginning in New Orleans and Baltimore, private law firms will hire law students who have participated in law school clinics and defer their start dates while they work at domestic violence service providers. The lawyers will help victims secure protective orders, navigate the family courts, and access safe housing. Access to Justice will encourage ongoing pro bono partnerships between private law firms, domestic violence service providers and law school clinics.

• The Department of Justice Office on Violence Against Women (OVW) is launching a new national campaign to reduce sexual violence in the United States by improving the criminal justice system response, increasing services for victims, and changing attitudes. Today, the White House Council on Women and Girls and the Department of Justice held the first ever national roundtable on sexual violence at the White House. Over the next six months, OVW will hold regional forums around the country to engage the public in their sexual assault reduction campaign. In the 2011 budget, President Obama has proposed doubling funding for VAWA sexual assault program.

Violence is still a significant barrier in many women’s lives, and the Obama administration, including Attorney General Holder, has committed to taking concrete action to reduce domestic violence in this country.  One-in-every-four women experiences domestic violence during their lifetimes and more than 20 million women in the U.S. have been victims of rape.  Approximately 15.5 million children are exposed to domestic violence every year.   The impact of abuse lingers for years, both for victims and their children. Domestic violence affects people of every race, gender, sexual orientation and socio-economic status. It not only impacts individual victims but entire communities.

WASHINGTON— In commemoration of Domestic Violence Awareness Month, the White House today highlighted unprecedented coordination and cooperation across the entire government to provide services for and protect victims of domestic and sexual violence and hold perpetrators accountable drawing attention to key initiatives of the Department of Justice. 

 

“It has been this administration’s commitment to ensure law enforcement has the resources necessary to combat violence against women and bring offenders to justice,” said Attorney General Eric Holder. “These crimes devastate lives, families and communities, but I’ve never been more hopeful about our ability to make meaningful progress in ending violence against women.”‪

 

“In the 16 years since the Violence Against Women Act (VAWA) passed, we have witnessed a sea change in our nation’s response to domestic violence and countless lives have been saved as a result,” said Susan Carbon, Director of the department’s Office of Violence Against Women.  “Today we reaffirm our commitment to building upon this work and ensuring that the needs of victims are met, and offenders are held accountable.”

 

The White House today highlighted the following initiatives of the Department of Justice:   

• The Defending Childhood Initiative was launched by Attorney General Holder on Sept 23, 2010 to protect children from the harmful consequences of experiencing and witnessing violence The goals of the initiative are to prevent children’s exposure to violence as victims and witnesses, mitigate the negative effects experienced by children exposed to violence, and develop knowledge about and increase awareness of this issue.

• The Sexual Assault Kit Backlog Action Research Project, an initiative sponsored by the Department of Justice Office of Justice Programs National Institute of Justice (NIJ), was launched to identify long term solutions to eliminate the ba cklog of untested sexual assault kits that have not yet been submitted to a crime laboratory.  The first phase in this effort will be the awarding of up to $200,000 to “action research” teams in up to five jurisdictions that currently have a backlog of 500 or more untested sexual assault kits.  The jurisdictions receiving these awards will use the funds to create teams composed of researchers, law enforcement, crime lab directors, prosecutors and victim advocates, who will audit their jurisdiction’s rape kit backlog.  The teams will explore the reasons for the backlog and then develop a plan to tackle the problem.  In the second phase of the project, NIJ will award up to $4 million for sites to implement their plans.

• Today, in partnership with the Family Violence Prevention Fund and other national organizations, the Office on Violence Against Women is launching a new virtual resource for employers to address the impacts of domestic violence in the workplace. Workplaces Respond to Domestic and Sexual Violence: A National Resource Center provides information, resources, tools, and technical assistance to employers and labor organizations to facilitate and encourage safer and more effective responses to employees who are victims of domestic, sexual and dating violence or stalking. The website launches today at: www.workplacesrespond.org .

• Attorney General Holder announced today that he has re-chartered the National Advisory Committee on Violence Against Women, as a discretionary federal advisory committee to provide advice and recommendations to the Department of Justice and the Department of Health and Human Services on how to improve the nation’s response to violence against women, with a specific focus on successful interventions with children and teens who witness and/or are victimized by domestic violence or sexual assault.  The committee includes highly regarded advocates, justice system and child welfare professionals, and researchers.

• Today, the Department of Justice Office on Violence Against Women, in partnership with the National Council of Juvenile and Family Court Judges, released new tools for communities to improve enforcement of protective orders. Civil Protection Orders:  A Guide for Improving Practice will keep victims and their children safe by providing guidance to advocates, attorneys, judges, law enforcement officers and prosecutors to ensure that protective orders are issued, served and enforced throughout the United States. The guide in available online at: www.ncjfcj.org/images/stories/dept/fvd/pdf/cpo_guide.pdf

• Today, the Department of Justice, with assistance from the White House, is launching Access to Justice for Domestic Violence Victims, a pilot project to encourage more commitment from the private bar to provide pro bono legal services to victims of domestic violence.  Beginning in New Orleans and Baltimore, private law firms will hire law students who have participated in law school clinics and defer their start dates while they work at domestic violence service providers. The lawyers will help victims secure protective orders, navigate the family courts, and access safe housing. Access to Justice will encourage ongoing pro bono partnerships between private law firms, domestic violence service providers and law school clinics.

• The Department of Justice Office on Violence Against Women (OVW) is launching a new national campaign to reduce sexual violence in the United States by improving the criminal justice system response, increasing services for victims, and changing attitudes. Today, the White House Council on Women and Girls and the Department of Justice held the first ever national roundtable on sexual violence at the White House. Over the next six months, OVW will hold regional forums around the country to engage the public in their sexual assault reduction campaign. In the 2011 budget, President Obama has proposed doubling funding for VAWA sexual assault program.

Violence is still a significant barrier in many women’s lives, and the Obama administration, including Attorney General Holder, has committed to taking concrete action to reduce domestic violence in this country.  One-in-every-four women experiences domestic violence during their lifetimes and more than 20 million women in the U.S. have been victims of rape.  Approximately 15.5 million children are exposed to domestic violence every year.   The impact of abuse lingers for years, both for victims and their children. Domestic violence affects people of every race, gender, sexual orientation and socio-economic status. It not only impacts individual victims but entire communities.

WASHINGTON – Farooque Ahmed, 34, of Ashburn, Va., was arrested today for attempting to assist others whom he believed to be members of al-Qaeda in planning multiple bombings at Metrorail stations in the Washington, D.C., area.

David Kris, Assistant Attorney General for National Security; Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia; and John G. Perren, Acting Assistant Director in Charge of the FBI Washington Field Office, made the announcement after Ahmed was taken into custody earlier this morning.

In announcing this arrest, officials emphasized that at no time was the public in danger during this investigation and that the FBI was aware of Ahmed’s activities from before the alleged attempt began and closely monitored his activities until his arrest. The public should be assured that there was no threat against Metrorail or the general public in the Washington, D.C., area.

"Today’s case underscores the need for continued vigilance against terrorist threats and demonstrates how the government can neutralize such threats before they come to fruition," said David Kris, Assistant Attorney General for National Security.  "Farooque Ahmed is accused of plotting with individuals he believed were terrorists to bomb our transit system, but a coordinated law enforcement and intelligence effort was able to thwart his plans."

"It’s chilling that a man from Ashburn is accused of casing rail stations with the goal of killing as many Metro riders as possible through simultaneous bomb attacks," said U.S. Attorney Neil H. MacBride. "Today’s arrest highlights the terrorism threat that exists in Northern Virginia and our ability to find those seeking to harm U.S. citizens and neutralize them before they can act. We are grateful for the outstanding work of the FBI in detecting and disrupting this plot."

"Just as we ask the public to remain vigilant about possible terrorists among us, the FBI remains committed to rooting out and dismantling those groups and organizations who seek to cause harm to U.S. citizens," said Acting FBI Assistant Director in Charge John G. Perren.

Yesterday, a federal grand jury in Alexandria, Va., returned a three-count indictment against Ahmed, a naturalized U.S. citizen born in Pakistan, charging him with attempting to provide material support to a designated terrorist organization, collecting information to assist in planning a terrorist attack on a transit facility, and attempting to provide material support to help carry out multiple bombings to cause mass casualties at D.C.-area Metrorail stations. If convicted, he faces a maximum penalty of 50 years in prison.

Ahmed was arrested by the FBI early this morning and is scheduled to make his first appearance before U.S. Magistrate Judge John F. Anderson at 2:00 P.M. EDT at the federal courthouse in Alexandria.

According to the indictment, from April 2010 through Oct. 25, 2010, Ahmed attempted to assist others whom he believed to be members of al-Qaeda in planning multiple bombings to cause mass casualties at Metrorail stations. On April 18, 2010, Ahmed allegedly drove to a hotel in Dulles, Va., and met with a courier he believed to be affiliated with a terrorist organization who provided Ahmed with a document that provided potential locations at which future meetings could be arranged. On or about May 15, 2010, at a hotel in Herndon, Va., Ahmed allegedly agreed to watch and photograph another hotel in Washington, D.C., and a Metrorail station in Arlington, Va., to obtain information about their security and busiest periods.

According to the indictment, Ahmed allegedly participated in surveillance and recorded video images of Metrorail stations in Arlington, Va., on four occasions. On or about July 19, 2010, in a hotel room in Sterling, Va., Ahmed allegedly handed a memory stick containing video images of a Metrorail station in Arlington to an individual whom Ahmed believed to be affiliated with al-Qaeda. On that same day, Ahmed allegedly agreed to assess the security of two other Metrorail stations in Arlington as locations of terrorist attacks.

The indictment further alleges that, on or about Sept. 28, 2010, in a hotel room in Herndon, Ahmed handed a USB drive containing images of two Metrorail stations in Arlington to an individual whom Ahmed believed to be affiliated with al-Qaeda.

According to the indictment, on or about Sept. 28, 2010, Ahmed provided to an individual whom he believed to be affiliated with al-Qaeda diagrams that Ahmed drew of three Metrorail stations in Arlington and provided suggestions as to where explosives should be placed on trains in Metrorail stations in Arlington to kill the most people in simultaneous attacks planned for 2011.

This case is being investigated by the FBI’s Washington Field Office Joint Terrorism Task Force, which includes 35 agencies in the Northern Virginia and Washington, D.C., metropolitan area. Assistant U.S. Attorney Gordon Kromberg and Trial Attorneys Joseph Moreno and Paul Casey of the Counterterrorism Section in the Justice Department’s National Security Division are prosecuting the case on behalf of the United States.

Indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.

WASHINGTON - Un gran jurado federal emitió una acusación formal relevante hoy en la que acusa a los supuestos miembros de la pandilla "Nación Todopoderosa de Reyes y Reinas Latinos" [Almighty Latin King and Queen Nation (Latin Kings)] Remy Heath, alias " Remy," "King Remy" y "King Mello," 25; Chinua Shepperdson, alias "Nu," "NuNu" y "King Nu," 27; y Brandon Smith, alias "Little One" y "King Little One," 25, de incendio provocado, homicidio, intento de homicidio y cargos asociados a armas de fuego relacionados con sus supuestas actividades pandilleras. Los tres demandados habían sido acusados anteriormente de conspiración para participar en una empresa de extorsión.

La acusación formal relevante fue anunciada por el Secretario de Justicia Auxiliar Lanny A. Breuer de la División Criminal y el Fiscal Federal Rod J. Rosenstein para el Distrito de Maryland, junto con asociados de las fuerzas del orden público.

De acuerdo con la acusación formal relevante, los demandados eran miembros de los Latin Kings, una pandilla callejera violenta con miembros que operan en Maryland desde, al menos, 2007.  Los Latin Kings tienen una estructura organizativa detallada y uniforme que se detalla – junto con diversas "oraciones", códigos de conducta y rituales – en un "manifiesto" distribuido comúnmente a miembros de todo el país. Los miembros de los Latin Kings también reciben tradicionalmente "nombres de King" o "nombres de Queen", que son nombres distintos a sus nombres legales por los cuales son conocidos por otros miembros de la pandilla y terceros en la calle.  A nivel local, los grupos de Latin Kings se organizan en "tribus", entre ellas Royal Lion Tribe, MOG, Sun Tribe y UTL.

La acusación formal relevante alega que desde una fecha desconocida hasta noviembre de 2009, los miembros de Latin Kings conspiraron para cometer homicidio, intentos de homicidio, robos, manipulación de testigos e incendios deliberados para promover su ardid de delincuencia organizada.

Por ejemplo, la acusación formal relevante alega que el 24 de julio de 2007, Shepperdson bombardeó un domicilio ocupado en un complejo de condominios en Langley Park, Md., y que el 14 de diciembre de 2007, Shepperdson y otros miembros y asociados de los Latin Kings participaron en el robo armado de una prostituta en un motel en Laurel, Md. Se alega también que los miembros de Latin Kings buscaron miembros rivales de MS-13 para balearlos y que, el 17 de enero de 2009, supuestamente, Smith disparó contra miembros de la MS-13 en un club nocturno en Queens, N.Y. De acuerdo con la acusación formal relevante, el 3 de febrero de 2009, miembros de los Latin Kings, incluidos Heath y Smith, supuestamente crearon una "lista negra" que contenía nombres de miembros de los Latin Kings de Maryland a quienes pretendían matar.

La acusación formal relevante acusa a Shepperdson de incendio deliberado, y uso y porte de un dispositivo destructivo en conexión con el bombardeo del 24 de julio de 2007 en Langley Park; de robo armado, y uso y porte de arma de fuego en conexión con robos armados el 14 de diciembre de 2007 y el 25 de abril de 2008; y de homicidio para promover delincuencia organizada y homicidio resultante del uso de un arma de fuego durante un delito violento, en conexión con la muerte de la víctima en el robo del 25 de abril de 2008.

La acusación formal relevante también acusa a Smith de dos cargos de uso y porte de un arma de fuego durante un delito violento, en conexión con un tiroteo el 17 de enero de 2009; y un intento de homicidio el 31 de enero de 2009; y dos cargos de intento de homicidio para promover delincuencia organizada asociado a hechos del 31 de enero de 2009 y el 8 de julio de 2009.

Los demandados enfrentan una sentencia máxima de prisión perpetua. Aún no se han programado sus comparecencias ante el juez.

Una acusación formal no es una decisión de culpabilidad. Se supone que una persona acusada en una acusación formal es inocente hasta que se pruebe lo contrario.

Acompañaron al Secretario de Justicia Auxiliar Breuer y el Fiscal Federal Rosenstein en el anuncio de la acusación formal relevante la Agente Especial a Cargo Theresa R. Stoop del Buró de Alcohol, Tabaco, Armas de Fuego y Explosivos [Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)]; el Jefe J. Thomas Manger del Departamento de Policía del Condado de Montgomery, Md.; el Fiscal Estatal del condado de Montgomery John McCarthy; el Jefe Roberto L. Hylton del Departamento de Policía del Condado de Prince George, Md.; el Fiscal Estatal para el Condado de Prince George, Glenn Ivey; el Jefe Mark P. Sroka del Departamento de Policía de Gaithersburg, Md.; el Alguacil del Condado de Montgomery Raymond M. Kight; el Jefe Larry Brownlee de la Policía de Maryland National Capital Park - División del Condado de Prince George; el Jefe Darien L. Manley de la Policía de Maryland National Capital Park - División del Condado de Montgomery; el Superintendente Terrence Sheridan de la Policía Estatal de Maryland; los Agentes Especiales a Cargo Barbara Golden y Jeffrey Irvine del Servicio Secreto de EE.UU., Divisiones de Baltimore y Washington, respectivamente; y la Agente Especial a Cargo Rebecca Sparkman del Servicio de Impuestos Internos - Investigaciones Criminales, Oficina Local de Washington, D.C.; y el Departamento de Policía de la Ciudad de Nueva York. Los funcionarios también agradecieron a la Fuerza de Tarea de Control Regional Antipandillas [Regional Anti-Gang Enforcement (RAGE)] del ATF y sus miembros por su asistencia en la investigación y formulación de cargos.

Están a cargo de la acusación en el caso los Fiscales Federales Emily Glatfelter y David Salem del Distrito de Maryland, y la Abogada Litigante Lara M. Peirce de la Unidad Antipandillas de la División Criminal.

WASHINGTON - A federal grand jury today returned a superseding indictment charging alleged Almighty Latin King and Queen Nation (Latin Kings) members Remy Heath, aka " Remy," "King Remy" and "King Mello," 25; Chinua Shepperdson, aka "Nu," "NuNu" and "King Nu," 27; and Brandon Smith, aka "Little One" and "King Little One," 25, with arson, murder, attempted murder and firearms charges related to their alleged gang activities. The three defendants were previously charged with conspiracy to participate in a racketeering enterprise.

The superseding indictment was announced by Assistant Attorney General Lanny A. Breuer for the Criminal Division and U.S. Attorney Rod J. Rosenstein for the District of Maryland, along with law enforcement partners. 

According to the superseding indictment, the defendants were members of the Latin Kings, a violent street gang with members operating in Maryland since at least 2007.  The Latin Kings have a detailed and uniform organizational structure, which is outlined – along with various "prayers," codes of behavior and rituals – in a written "manifesto" widely distributed to members throughout the country.  Members of the Latin Kings are also traditionally given "King Names" or "Queen Names," which are names other than their legal names, by which they are known to members of the gang and to others on the street.  At the local level, groups of Latin Kings are organized into "tribes," including the Royal Lion Tribe, MOG, Sun Tribe and UTL.

The superseding indictment alleges that from a date unknown through November 2009, the Latin Kings members conspired to commit murder, attempted murders, robberies, witness tampering and arson to promote their racketeering scheme. 

For example, the superseding indictment alleges that on July 24, 2007, Shepperdson firebombed an occupied residence at a condo complex in Langley Park, Md., and that on Dec. 14, 2007, Shepperdson and other Latin King members and associates participated in the armed robbery of a prostitute at a motel in Laurel, Md.  Latin Kings members also allegedly hunted for rival MS-13 members to shoot and in Jan. 17, 2009, Smith allegedly fired shots at MS-13 members at a night club in Queens, N.Y.  According to the superseding indictment, on Feb. 3, 2009, Latin Kings members, including Heath and Smith, allegedly created a "hit list" containing names of Maryland Latin Kings members. 

The superseding indictment charges Shepperdson with arson, and using and carrying a destructive device in connection with the July 24, 2007, firebombing in Langley Park; with armed robbery, and using and carrying a firearm in connection with armed robberies on Dec. 14, 2007, and April 25, 2008; and with murder in aid of racketeering and murder resulting from the use of a firearm during a crime of violence, in connection with the death of the victim in the April 25, 2008, robbery.

The superseding indictment also charges Smith with two counts of using and carrying a firearm during a crime of violence, in connection with a shooting on Jan. 17, 2009, and an attempted murder on Jan. 31, 2009; and with two counts of attempted murder in aid of racketeering related to events on Jan. 31, 2009, and July 8, 2009.

The defendants face a maximum sentence of life in prison.  Court appearances have not yet been scheduled.

An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty. 

Assistant Attorney General Breuer and U.S. Attorney Rosenstein were joined in announcing the superseding indictment by Special Agent in Charge Theresa R. Stoop of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Chief  J. Thomas Manger of the Montgomery County, Md., Police Department; Montgomery County State’s Attorney John McCarthy; Chief Roberto L. Hylton of the Prince George’s County, Md., Police Department; Prince George’s County State’s Attorney Glenn Ivey; Chief Mark P. Sroka of the Gaithersburg, Md., Police Department;  Montgomery County Sheriff Raymond M. Kight; Chief Larry Brownlee of the Maryland National Capital Park Police - Prince George’s County Division; Chief Darien L. Manley of the Maryland National Capital Park Police - Montgomery County Division; Superintendent Terrence Sheridan of the Maryland State Police; Special Agents in Charge Barbara Golden and Jeffrey Irvine of the U.S. Secret Service, Baltimore and Washington Divisions, respectively; and Special Agent in Charge Rebecca Sparkman of the Internal Revenue Service - Criminal Investigation, Washington, D.C., Field Office; and the New York City Police Department. Officials also thanked the ATF’s RAGE (Regional Anti-Gang Enforcement) Task Force and its members for their assistance in the investigation and prosecution. 

The case is being prosecuted by Assistant U.S. Attorneys Emily Glatfelter and David Salem for the District of Maryland, and Trial Attorney Lara M. Peirce of the Criminal Division’s Gang Unit.

WASHINGTON – In response to a motion by the U.S. Department of Justice, the U.S. District Court in New Orleans has ordered the establishment of a security zone extending 750 feet in all directions from the mobile offshore drilling unit Deepwater Horizon wreckage site and its debris field. The security zone extends from the center of the wreckage site, which is located at the precise coordinates N28-5491/W088-22.0293 (in the area known as the Mississippi Canyon 252) from the sea floor of the Gulf of Mexico to the sea surface.

The court found it in the interest of the public to protect the search area and any evidence located in the area against intentional or unintentional loss, the order said. It ordered the United States to inform the public and advise all known parties capable of intruding into the security zone.

In accordance with the order, the Department of Justice has informed those companies known to have the means and equipment to do so not to enter the security zone.

The order will be enforced by the United States using the full range of security assets available, including vessels, aircraft or other appropriate means and equipment.

The security zone will remain in place until Oct. 8, 2011 unless renewed for good cause, the court ordered.

WASHINGTON – In anticipation of the upcoming election, the department today provided information about its efforts, through the Civil Rights and Criminal Divisions, to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted, without incidence of discrimination, intimidation or fraud.

Civil Rights Division:

 

The Civil Rights Division is responsible for ensuring compliance with the civil provisions of federal laws that protect the right to vote, and with criminal law prohibiting discriminatory interference with that right. 

 

The Civil Rights Division’s Voting Section enforces civil provisions of federal laws that protect the right to vote including: the Voting Rights Act; the National Voter Registration Act; the Uniformed and Overseas Citizens Absentee Voting Act; and the Help America Vote Act.  Among other things, these laws prohibit discrimination based on race or membership in a minority language group; prohibit intimidation of voters; provide that voters who need assistance in voting because of disability or illiteracy can obtain assistance from a person of their choice; require minority language election materials and assistance in certain jurisdictions; provide for accessible election machines for voters with disabilities; require provisional ballots for voters who assert they are eligible but whose names do not appear on poll books; provide for absentee ballots for service members and U.S. citizens living abroad; and require states to ensure that citizens can register at driver license offices, public assistance offices and other state agencies; and include requirements regarding maintaining voter registration lists.

 

The Civil Rights Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and suppression based on race, color, national origin or religion. As it has in the past, on Election Day, Nov. 2, 2010, the Civil Rights Division will implement a comprehensive program to help ensure ballot access that will include the following:

 

The Civil Rights Division will announce later this week which states will have federal personnel as election monitors and observers at polling places.

 

Civil Rights Division attorneys in both the Voting and Criminal Sections in Washington, D.C., will be ready to receive election-related complaints of potential violations relating to any of the statutes the Civil Rights Division enforces. Attorneys in the division will take appropriate action and will consult and coordinate with local U.S. Attorneys’ Offices and with other entities within the Department of Justice concerning these complaints on and after Election Day, as appropriate.

 

Civil Rights Division staff will be available at special toll-free numbers to receive complaints related to ballot access (1-800-253-3931) (TTY line 1-877-267-8971). In addition, individuals can also report complaints, problems or concerns related to voting via the Internet. Forms may be submitted through a link on the department’s Web page: www.justice.gov/crt/election2010contact.php.  

 

Criminal Division and the Department's 94 U.S. Attorneys’ Offices:

 

The Department’s Criminal Division oversees the enforcement of federal laws that criminalize voter fraud and protect the integrity of the federal election process.

 

The Criminal Division’s Public Integrity Section and the Department’s 94 U.S. Attorneys’ Offices are responsible for enforcing the federal criminal laws that prohibit various forms of election fraud, such as vote buying, multiple voting, submission of fraudulent ballots or registrations, destruction of ballots or registrations, voter intimidation, alteration of votes and malfeasance by election officials, as well as federal civil law prohibiting voter intimidation that does not involve discrimination or intimidation on grounds of race or color.

 

The department’s Ballot Access and Voting Integrity Initiative requires that each of the department’s U.S. Attorneys’ Offices coordinate with state law enforcement and election officials before the federal general elections regarding the handling of election-related matters in their respective districts.  In addition, the department provides annual training for the Assistant U.S. Attorneys who serve as District Election Officers (DEOs) in their respective districts, which the department conducted this year on Aug. 31 and Sept.1.  DEOs are responsible for overseeing potential election crime matters in their districts and coordinating with the department’s election crime experts in Washington, D.C. 

 

On Nov. 2, 2010, these offices will work together and with the FBI to ensure that complaints from the public involving possible voter fraud are handled appropriately and expeditiously. Specifically:

•  Federal prosecutors within the Public Integrity Section, the DEOs in U.S. Attorneys’ Offices, FBI officials at headquarters in Washington, D.C., and special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open to receive complaints from the public and take appropriate action.
• Public Integrity Section prosecutors will also be available to consult and coordinate with the U.S. Attorneys’ Offices and FBI regarding the handling of election crime allegations.
• Voter fraud complaints may be directed to any of the local U.S. Attorneys’ Offices, the local FBI offices or the Public Integrity Section (202-514-1412). A list of U.S. Attorneys’ Office can be found at www.justice.gov/usao/offices/index.html and a list of FBI offices can be found at: www.fbi.gov. 

Both protecting the right to vote and combating voter fraud are essential to maintaining the confidence of all Americans in our system of government. 

WASHINGTON - Un tribunal federal en Pensacola, Fla., ha sentenciado a los últimos dos promotores de un ardid fraudulento de eliminación de impuestos y deudas a sentencias en prisión por sus papeles en fraude tributario, fraude electrónico y lavado de dinero, anunciaron hoy el Departamento de Justicia y el Servicio de Impuestos Internos [Internal Revenue Service (IRS)]. Otros siete fueron sentenciados en julio y octubre a sentencias en prisión que varían de 18 meses a 12 años.

El tribunal sentenció a Claudia Hirmer a 20 años en prisión y sentenció a Mark Hirmer a 15 años en prisión.

El 31 de marzo de 2010, un jurado federal emitió veredictos de culpabilidad contra ocho personas, después de un juicio que duró un mes en Pensacola, Fla., asociado a la promoción de ardides fraudulentos a través de Pinnacle Quest International, también conocida como PQI y Quest International. La novena persona se declaró culpable y atestiguó contra las otro ocho en el enjuiciamiento.

Según la evidencia presentada durante el juicio, PQI era una organización paraguas para diversos vendedores de ardides de eliminación de impuestos y deudas de tarjetas de crédito. Algunos de los vendedores de PQI, como Southern Oregon Resource Center for Education (SORCE), vendían teorías falsas y estrategias para evadir impuestos. Por tarifas desde $10,000 dólares, SORCE asistía a sus clientes en la creación de una serie de entidades de negocios falsas en los Estados Unidos y Panamá. Otros vendedores relacionados con impuestos de PQI negaban la legitimidad del sistema de impuestos sobre los ingresos basándose en diversas teorías y le brindaban a los clientes una “defensa de fiabilidad” que consistía en documentación escrita de correspondencia frívola que alegaban que el cliente podía usar como evidencia de buena fe si era enjuiciado.

En el juicio, el gobierno estableció que otros vendedores de PQI vendían ardides fraudulentos para eliminar deudas de tarjetas de crédito, entre los cuales el más exitoso fue Financial Solutions. Financial Solutions cobraba miles de dólares a sus clientes por una serie de cartas que debían enviar a empresas de tarjetas de crédito que disputaban la legalidad de la deuda profunda. El producto era enteramente ineficaz y por lo general los clientes eran demandados por sus acreedores y a menudo obligados a declarar la bancarrota.

De acuerdo a las pruebas, otro proveedor de PQI, MYICIS, funcionaba como un complejo “banco de depósito” computarizado. MYICIS era una sola cuenta bancaria en la que los clientes juntaban su dinero. MYICIS era promocionada a los clientes de PQI como un método para ocultar sus bienes al IRS como resultado de la naturaleza conjunta de la cuenta. MYICIS tuvo 3,000 clientes y aproximadamente $100 millones de dólares en depósitos en un período de tres años.

Las pruebas presentadas en el juicio probaron que PQI alegaba vender solo CDs y entradas para conferencias en el exterior. Sin embargo, PQI funcionaba como puerta de entrada para sus vendedores fraudulentos. Los clientes de PQI que buscaban a los vendedores de evasión fiscal y eliminación de deudas solo podían acceder al producto si se unían a PQI primero. El costo de la membresía iba desde $1,350 hasta $18,750 dólares, dependiendo del nivel de acceso. En mayo de 2008, un tribunal federal de distrito emitió un interdicto preliminar contra los promotores de PQI.

"Las largas sentencias en prisión recibidas hoy por los Hirmer transmiten un mensaje fuerte y claro de que los desafiadores tributarios ilegales serán investigados, enjuiciados y sujeto a toda la fuerza de la ley por sus acciones", dijo John A. DiCicco, Secretario de Justicia Auxiliar Interino de la División de Impuestos del Departamento de Justicia.

"Como lo han descubierto Claudia y Mark Hirmer, operar fuera de la ley y dejar de pagar impuestos tienen graves consecuencias", dijo Víctor S.O. Song, Jefe, Investigaciones Criminales del IRS. "Las personas que promuevan ardides tributarios abusivos, establezcan empresas fraudulentas en el exterior y evadan impuestos intencionalmente, debilitan la confianza pública en nuestro sistema tributario. Esta sentencia debe servir de elemento de disuasión para quienes contemplen acciones fraudulentas similares".

El Secretario de Justicia Auxiliar Interino DiCicco agradeció a los Abogados Litigantes Michael Watling, Adam Hulbig y Jonathan Marx, así como a la asistente legal Iris Wright, por su trabajo arduo en la acusación de este caso. El Sr. DiCicco también agradeció al equipo de Agentes Especiales del IRS que investigaron el caso, especialmente Stephen Walker y Wendy Kilpatrick, por sus esfuerzos.

WASHINGTON – Donald Williams fue sentenciado hoy en conexión con una serie de empresas de oportunidades comerciales fraudulentas con sede en Costa Rica, anunciaron el Departamento de Justicia y el Servicio de Inspección Postal de EE.UU. La Juez Federal de Distrito Marcia G. Cooke en Miami sentenció a Williams a 78 meses en prisión y cinco años de libertad bajo supervisión. También se le ordenó a Williams que pagara $3.9 millones de dólares en restitución a víctimas del ardid.

Williams se declaró culpable de conspiración para cometer fraude postal y electrónico el 29 de junio de 2010. Fue arrestado en Houston el 7 de mayo de 2010, después de su acusación formal por un gran jurado federal en Miami el 9 de marzo de 2010. La acusación formal alega que Williams y sus codemandados Silvio Carrano, Patrick Williams y Gregory Fleming conspiraron con terceros en Costa Rica para vender oportunidades comerciales fraudulentas de tarjetas de felicitación y bebidas a ciudadanos estadounidenses. Supuestamente, las oportunidades comerciales incluían asistencia para establecer, mantener y operar los negocios.

Los cargos son parte de la iniciativa continua del gobierno contra el fraude de oportunidad comercial en todo el país. Dos coconspiradores que trabajaban con Williams en Costa Rica, Stephen Schultz y Dilraj Mathauda, ya se habían declarado culpables anteriormente en el tribunal federal en Miami y fueron sentenciados en casos relacionados. Siguen pendientes los cargos contra los codemandados de Williams, así como los cargos contra los demandados Jeffrey Pearson y Sirtaj Mathauda, en casos relacionados.

Al declararse culpable, Williams admitió que trabajó para empresas fraudulentas conocidas como USA Beverages Inc., Twin Peaks Gourmet Coffee Inc. y Cards-R-Us Inc. A partir de 2005, USA Beverages comenzó a vender oportunidades comerciales para poseer y operar estantes de exhibición de bebidas de café. USA Beverages alquiló oficinas en Las Cruces, N.M., e hizo parecer a compradores potenciales que las operaciones de USA Beverages estaban plenamente en los Estados Unidos. Sin embargo, USA Beverages en realidad operaba desde Costa Rica.

Después de USA Beverages, Williams trabajó en Twin Peaks Gourmet Coffee Inc., una empresa de Florida y Colorado. Twin Peaks también vendía oportunidades comerciales de posesión y operación de estantes de exhibición de bebidas de café. Twin Peaks alquilaba oficinas en Fort Collins, Colo., para que los compradores potenciales pensaran que las operaciones de Twin Peaks estaban integralmente dentro de los Estados Unidos. Sin embargo, Twin Peaks en realidad operaba desde Costa Rica.

Luego, Williams trabajó en Cards-R-Us Inc., una empresa de Nevada que vendía oportunidades comerciales de posesión y operación de estantes de exhibición de tarjetas de felicitaciones. Cards-R-Us alquiló oficinas en Reno, Nev., para que los compradores potenciales pensaran que las operaciones de Cards-R-Us estaban plenamente en los Estados Unidos. Sin embargo, así como USA Beverages y Twin Peaks, en realidad, Cards-R-Us operaba desde Costa Rica.

Williams admitió que él y sus coconspiradores realizaron numerosas declaraciones falsas a compradores potenciales de las oportunidades comerciales. Williams y otros vendedores dijeron falsamente a los compradores potenciales que las empresas se habían fundado años atrás, tenían un importante número de distribuidores en todo el país y tenían un historial de éxitos. Haciéndose pasar por referencias que supuestamente vivían en diversas ciudades en los Estados Unidos, Williams y los demás conspiradores realizaron declaraciones falsas sobre su éxito como propietarios de oportunidades comerciales. A través de estas y otras declaraciones engañosas, los compradores de las oportunidades comerciales eran llevados a creer por los conspiradores que probablemente recibirían ganancias significativas.

"Los estafadores que se dedican a ardides como éste causan dificultades financieras significativas a consumidores que intentan iniciar un negocio y ganarse la vida honestamente", dijo Tony West, Secretario de Justicia Auxiliar de la División Civil del Departamento de Justicia. "El fraude de oportunidades comerciales es un delito grave que enjuiciaremos enérgicamente, como lo demuestra esta sentencia en prisión".

El Secretario de Justicia Auxiliar West felicitó al Servicio de Inspección Postal por su labor de investigación, especialmente a las oficinas con sede en Miami y Phoenix. El Secretario de Justicia Auxiliar West también felicitó a la Comisión Federal de Comercio, quien había entablado una demanda civil relacionada con anterioridad y realizó un referido criminal. Están a cargo de la acusación en el caso abogados litigantes de la Oficina de Litigios de Consumidores del Departamento de Justicia, Jeffrey Steger y Alan Phelps.

WASHINGTON – El Mayor del Ejército de EE.UU. Roderick D. Sànchez se declaró culpable hoy de una información criminal compuesta por un cargo de soborno por aceptar dinero y artículos de valor a cambio de influencias en el otorgamiento de contratos del Ejército, anunció el Secretario de Justicia Auxiliar de la División Criminal Lanny A. Breuer.

Sànchez, 45, de Pueblo, Colo., se declaró culpable en el Tribunal Federal de Distrito para el Distrito de Colorado. De acuerdo con el expediente judicial, en diversas oportunidades entre aproximadamente 2004 y 2007, Sànchez estuvo empleado por el Ejército de EE.UU. y enviado al exterior a Afganistán, Irak y Kuwait como oficial de contrataciones. Las tareas de Sànchez incluían el análisis de propuestas presentadas por contratistas para contratos del Ejército, y recomendar el otorgamiento de contratos del Ejército a contratistas específicos y finalmente otorgar dichos contratos a contratistas del gobierno. Sànchez admitió que durante dicho periodo aceptó pagos de sobornos de empresas extranjeras que deseaban obtener contratos del Ejército. A cambio, Sànchez utilizó su posición oficial para hacer otorgar contratos del Ejército a dichas empresas. Durante este ardid, Sànchez aceptó relojes Rolex, pagos de dinero en efectivo y otras cosas de valor por un total de más de $200,000 dólares.

Sànchez enfrenta una sentencia máxima de 15 años en prisión, una multa de $250,000 dólares y cinco años de libertad bajo supervisión después de haber cumplido su sentencia en prisión. La lectura de la sentencia de Sànchez está programada para el 19 de enero de 2011; a las 8:30a.m., ante la Juez Federal de Distrito Christine M. Arguello.

Están a cargo de la acusación en este caso el Jefe Adjunto Justin V. Shur y el Abogado Litigante Eric L. Gibson de la Sección de Integridad Pública de la División Criminal. El caso está siendo investigado por el Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)], el Comando de Investigaciones Criminales del Ejército, el Servicio de Investigaciones Criminales de Defensa y el Inspector General Especial para la Reconstrucción de Irak.

WASHINGTON – A patient recruiter who sold the personal information of Medicare beneficiaries from San Diego and Los Angeles to fraudulent Los Angeles medical clinics and durable medical equipment (DME) companies was sentenced late yesterday to 21 months in prison in connection with a scheme to defraud Medicare, the Departments of Justice and Health and Human Services (HHS) announced.

 

James Roland Fuquay, 49, was also ordered to pay $556,815 in restitution by U.S. District Judge John F. Walter of the Central District of California. In addition, Fuquay was ordered to serve three years of supervised release following his prison term.

 

Fuquay pleaded guilty on May 11, 2009, to conspiracy to commit health care fraud. According to court documents, Fuquay was a patient recruiter known as the “Red, White & Blue Man,” which is a reference to the colors on a Medicare card. Fuquay in fact recruited Medicare beneficiaries from homeless shelters in San Diego and Los Angeles using the sales pitch, “Red, white, and blue. Let’s make it do what it do.” Fuquay then paid the beneficiaries to go with him to fraudulent medical clinics and DME supply companies to receive medical services, power wheelchairs, hospital beds and other medical equipment the beneficiaries did not want, need or receive. Fuquay’s network of Medicare beneficiaries and fraudulent DME supply companies was large enough for him to make approximately $220,000 in illegal recruiter fees.

 

According to court documents, one of the fraudulent DME supply companies that paid Fuquay to recruit beneficiaries was Airport Medical Supply, whose owner, Eli Gichon, pleaded guilty on Sept. 1, 2010, to health care fraud and tax charges. According to court documents, Airport Medical Supply operated out of a dry cleaning business where Gichon directed Fuquay and others to bring beneficiaries so that Gichon could take pictures of them sitting in power wheelchairs or standing next to empty hospital bed boxes. Gichon used these pictures to try to fraudulently prove to Medicare inspectors that he had in fact provided the beneficiaries with power wheelchairs and hospital beds. Gichon’s sentencing is scheduled for Jan. 10, 2011.

 

The sentencing was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney André Birotte Jr. for the Central District of California; Tony Sidley, Assistant Chief of the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse; Glenn R. Ferry, Special Agent-in-Charge for the Los Angeles Region of the Office of Inspector General for HHS (HHS-OIG); and Steven Martinez, Assistant Director in Charge of the FBI’s Los Angeles Field Office

 

The case was prosecuted by Assistant U.S. Attorney April Christine of the Central District of California with the assistance of Trial Attorney Jonathan T. Baum of the Criminal Division’s Fraud Section. The case was investigated by FBI and HHS-OIG. The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.

Since their inception in March 2007, Strike Force operations in seven districts have obtained indictments of more than 825 individuals who collectively have falsely billed the Medicare program for more than $2 billion. In addition, HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

WASHINGTON— En conmemoración del Mes de Concienciación sobre la Violencia Doméstica, la Casa Blanca destacó hoy coordinación y cooperación sin precedentes en todo el ámbito del gobierno para proveer servicios para y proteger a las víctimas de la violencia doméstica y sexual y hacer pagar a los responsables por sus actos atrayendo atención a iniciativas clave del Departamento de Justicia.

"Ha sido el compromiso de este gobierno asegurar que las fuerzas del orden público tengan los recursos necesarios para combatir la violencia contra las mujeres y llevar a los responsables a enfrentar a la justicia", dijo el Secretario de Justicia de los Estados Unidos Eric Holder. "Estos delitos devastan vidas, familias y comunidades, pero nunca ha sido mayor mi esperanza con respecto a nuestra capacidad de lograr progresos importantes para acabar con la violencia contra las mujeres".

"En los 16 años desde la aprobación de la Ley de Violencia contra la Mujer [Violence Against Women Act (VAWA)], hemos sido testigos de un cambio importante en la respuesta de nuestra nación a la violencia doméstica y, como resultado, se han salvado incontables vidas", dijo Susan Carbón, Directora de la Oficina de Violencia contra la Mujer del Departamento. "Hoy, reafirmamos nuestro compromiso de incrementar este trabajo y asegurar que se satisfagan las necesidades de las víctimas y que los responsables paguen por sus actos".

La Casa Blanca destacó hoy las siguientes iniciativas del Departamento de Justicia:

• La Iniciativa de Defensa de la Niñez fue lanzada por el Secretario de Justicia de los Estados Unidos Holder el 23 de septiembre de 2010 para proteger a los niños contra las consecuencias dañinas de vivir y ser testigos de la violencia. Los objetivos de la iniciativa son evitar la exposición de los niños a la violencia como víctimas y testigos, mitigar los efectos negativos vividos por los niños expuestos a la violencia, y desarrollar conocimientos sobre e incrementar la concienciación sobre este problema.

• El Proyecto de Investigación de Acción contra el Atraso en Equipos de Agresión Sexual, una iniciativa patrocinada por el Instituto Nacional de Justicia [National Institute of Justice (NIJ)] de la Oficina de Programas Judiciales del Departamento de Justicia, fue lanzado para identificar soluciones de largo plazo para eliminar el atraso de equipos de agresión sexual no comprobados que aun no han sido presentados a un laboratorio forense. La primera fase de esta iniciativa será la asignación de hasta $200,000 dólares para equipos de "investigación de acción" en hasta cinco jurisdicciones actualmente con un atraso de 500 o más equipos de agresión sexual no comprobados. Las jurisdicciones que reciban estas asignaciones utilizarán los fondos para crear equipos compuestos por investigadores, miembros de las fuerzas del orden público, directores de laboratorios forenses, fiscales y defensores de víctimas, quienes auditarán el atraso de equipos de violación en sus jurisdicciones. Los equipos explorarán los motivos del atraso y luego elaborarán un plan para resolver el problema. En la segunda fase del proyecto, NIJ asignará hasta $4 millones de dólares para que instalaciones implementen sus planes.

• Hoy, en asociación con el Fondo de Prevención de la Violencia Familiar y otras organizaciones nacionales, la Oficina de Violencia contra la Mujer está lanzando un nuevo recurso virtual para empleadores para tratar de los impactos de la violencia doméstica en el lugar de trabajo. Los lugares de trabajo responden a la violencia doméstica y sexual: Un Centro Nacional de Recursos provee información, recursos, herramientas y asistencia técnica a empleadores y organizaciones de trabajo para facilitar y estimular respuestas más seguras y eficaces a empleados víctimas de violencia doméstica, sexual y en citas o acoso. El portal en el Internet se lanza hoy en: www.workplacesrespond.org.

• El Secretario de Justicia de los Estados Unidos Holder anunció hoy que ha reinstituido al Comité Nacional Asesor sobre la Violencia Contra la Mujer, como un comité asesor federal discrecional para proveer asesoría y recomendaciones al Departamento de Justicia y el Departamento de Salud y Servicios Humanos sobre cómo mejorar la respuesta de la nación a la violencia contra las mujeres, con concentración específica en intervenciones exitosas con niños y adolescentes testigos y/o víctimas de la violencia doméstica o la agresión sexual. El comité incluye defensores de alta reputación, el sistema judicial y profesionales de bienestar de menores, e investigadores.

• Hoy, la Oficina de Violencia contra la Mujer del Departamento de Justicia, en asociación con el Consejo Nacional de Jueces de Tribunales de Menores y Familias, lanzaron nuevas herramientas para que comunidades puedan mejorar la imposición de órdenes de protección. Órdenes de protección civiles: Una guía para mejorar la práctica protegerán a víctimas y sus hijos al proveer orientación a defensores, abogados, jueces, agentes de las fuerzas del orden público y fiscales para asegurar que se emitan, entreguen y hagan valer órdenes de protección en todos los Estados Unidos. La guía está disponible en Internet en: www.ncjfcj.org/images/stories/dept/fvd/pdf/cpo_guide.pdf

• Hoy, el Departamento de Justicia, con la asistencia de la Casa Blanca, está lanzando Acceso a la justicia para víctimas de la violencia doméstica, un piloto proyecto para estimular un mayor compromiso de la asociación privada de abogados para proveer servicios legales gratuito a víctimas de violencia doméstica. Comenzando por Nueva Orleáns y Baltimore, las empresas de abogados privadas contratarán a estudiantes de derecho que hayan participado en clínicas en la facultad de derecho y deferirán sus fechas de inicio mientras trabajen para proveedores de servicios para la violencia doméstica. Los abogados ayudarán a las víctimas a lograr órdenes de protección, navegar por los tribunales de familia y lograr acceso a vivienda segura. Acceso a la Justicia estimulará las asociaciones constantes para trabajo gratuito entre empresas de abogados privadas, proveedores de servicios para la violencia doméstica y clínicas de escuelas de abogados.

• La Oficina de Violencia contra la Mujer [Office on Violence Against Women (OVW)] del Departamento de Justicia está lanzando una nueva campaña nacional para reducir la violencia sexual en los Estados Unidos al mejorar la respuesta del sistema de justicia criminal, aumentar los servicios para víctimas y cambiar actitudes. Hoy, el Consejo sobre Mujeres y Niñas de la Casa Blanca y el Departamento de Justicia realizaron la primerísima mesa redonda nacional sobre la violencia sexual en la Casa Blanca. A lo largo de los próximos seis meses, OVW realizará foros regionales en todo el país para lograr el compromiso del público en su campaña de reducción de la agresión sexual. En el presupuesto de 2011, el Presidente Obama ha propuesto duplicar los fondos para el programa contra la agresión sexual de la VAWA.

La violencia sigue siendo una barrera importante en las vidas de muchas mujeres, y el gobierno de Obama, incluido el Secretario de Justicia de los Estados Unidos Holder, se ha comprometido a tomar acción concreta para reducir la violencia doméstica en este país. Una de cada cuatro mujeres vive violencia doméstica durante su vida y más de 20 millones de mujeres en EE.UU. han sido víctimas de violación. Aproximadamente 15.5 millones de niños son expuestos a la violencia doméstica cada año. El impacto del abuso permanece durante años, tanto para las víctimas como para sus hijos. La violencia doméstica afecta a personas de todas las razas, géneros, orientaciones sexuales y situaciones socioeconómicas. No solo afecta a las víctimas individuales, sino también a comunidades enteras.

WASHINGTON – A patient recruiter for a Houston-based home health care company pleaded guilty today in connection with a $5.2 million Medicare fraud scheme, announced the Departments of Justice and Health and Human Services (HHS).

Sammie Wilson, 69, pleaded guilty before U.S. District Court Judge Nancy Atlas in Houston to conspiracy to commit health care fraud.  According to court documents, Family Healthcare Group (Family Group) purported to provide skilled nursing to Medicare beneficiaries.  The owner hired Wilson and other co-conspirators to recruit Medicare beneficiaries for the purposes of filing false claims with Medicare.  According to court documents, Family Group used the Medicare beneficiary numbers to submit claims to Medicare for skilled nursing that was medically unnecessary and/or not provided.  In return, Wilsonwas paid kickbacks for referring beneficiaries for services that she knew were not medically necessary and/or not rendered. 

According to court documents, Wilson herself is a Medicare beneficiary.  Family Group billed Medicare for providing the defendant services that were not medically necessary and/or not provided. 

At sentencing, scheduled for July 18, 2011, Wilson faces a maximum sentence of 10 years in prison.

Today’s guilty plea was announced by Assistant Attorney General of the Criminal Division Lanny A. Breuer; U.S. Attorney José Angel Moreno of the Southern District of Texas; Special Agent-in-Charge Richard C. Powers of the FBI’s Houston Field Office; Special Agent-in-Charge Mike Fields of the Dallas Regional Office of HHS Office of Inspector General (HHS-OIG), Office of Investigations; and Texas Attorney General Greg Abbott.

This case is being prosecuted by Trial Attorneys Charles D. Reed and Sam S. Sheldon of the Criminal Division’s Fraud Section. The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Southern District of Texas and the Criminal Division’s Fraud Section. 

Since their inception in March 2007, Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 825 individuals who collectively have falsely billed the Medicare program for more than $2 billion.  In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

WASHINGTON – Former National Century Financial Enterprises (NCFE) executive Rebecca S. Parrett, 62, has been arrested in Mexico, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Carter M. Stewart for the Southern District of Ohio and U.S. Marshal Cathy Jones for the Southern District of Ohio. Parrett fled in March 2008 after a federal jury convicted her on charges stemming from her role in a $2.8 billion fraud that led to NCFE’s collapse.

Mexican authorities arrested Parrett in Ajijic, Jalisco, Mexico, based on information provided to them by the U.S. Marshals Service in Columbus, Ohio. Parrett was immediately deported according to Mexican immigration laws.  Mexican authorities escorted Parrett to Los Angeles where deputy U.S. Marshals arrested her on the warrant issued after her conviction. Parrett will appear before a federal judge in U.S. District Court in Los Angeles today, then will be returned to Columbus.

"Corporate executives found guilty for their fraudulent activity will not be allowed to escape justice by fleeing the United States," said Assistant Attorney General Lanny A. Breuer.  "Like any defendant convicted by a jury, Ms. Parrett is today facing the consequences of her actions."

"The U.S. Marshals Service has followed all leads and devoted countless hours to the search for Parrett," said U.S. Attorney Stewart. "Their persistence has led to her arrest. Now she will finally face justice."

"The U.S. Marshal Service never wavered or slowed in our commitment to bring Rebecca Parrett to justice," said U.S. Marshal Cathy Jones.  "Even fugitives with great financial resources willing to flee the country for years, as she did, will always have to look over their shoulder.  The U.S. Marshals Service is world-renowned for having the resources to conduct complicated fugitive investigations, and this arrest again displays our commitment to ensuring the integrity of the criminal justice system."

A jury convicted Parrett, the former vice chairman, secretary, treasurer, director and owner of NCFE, on March 13, 2008, of charges including conspiracy, securities fraud and wire fraud. Parrett fled after the conviction. She was sentenced on March 27, 2009, to 25 years in prison. She was also ordered to forfeit $1.7 billion in property representing the proceeds of the conspiracy and to pay restitution of $2.3 billion, jointly and severally with other defendants.

NCFE, formerly based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States until it filed for bankruptcy in November 2002. Parrett and other NCFE executives engaged in a scheme from 1995 until the collapse of the company to deceive investors and rating agencies about the company’s financial health and how investors’ money would be used. The court noted that 275 healthcare providers filed bankruptcy in whole or in part because of NCFE’s collapse.  Parrett and nine other executives were convicted or pleaded guilty in connection with the fraud that led to the company’s collapse.

The investigation into Parrett’s disappearance generated leads in more than a dozen U.S. states and several foreign countries.  Many federal, state and local police agencies assisted the U.S. Marshals Service in Columbus with its pursuit of the fugitive. 

The cooperative investigation that led to Parrett’s arrest included assistance from the Southern Ohio Fugitive Task Force (SOFAST); the U.S. Department of State, Diplomatic Security Service; the Internal Revenue Service - Criminal Investigation Division; the Columbus Division of Police; the FBI; the Grove City, Ohio, Police Department; the Ohio Bureau of Criminal Identification and Investigation; the Drug Enforcement Administration; the U.S. Immigration and Customs Enforcement; the Ohio Adult Parole Authority; and the U.S. Postal Inspection Service. Officials also expressed their gratitude to Mexican authorities for their significant assistance in this matter.

WASHINGTON – Donald Williams was sentenced today in connection with a series of Costa Rica-based business opportunity fraud ventures, the Justice Department and the U.S. Postal Inspection Service announced. U.S. District Court Judge Marcia G. Cooke in Miami sentenced Williams to a term of 78 months in prison and a term of five years of supervised release. Williams also was ordered to pay $3.9 million in restitution to victims of the scheme.

Williams pleaded guilty to conspiracy to commit mail and wire fraud on June 29, 2010. He was arrested in Houston on May 7, 2010, following his indictment by a federal grand jury in Miami on March 9, 2010. The indictment charged that Williams and his co-defendants, Silvio Carrano, Patrick Williams and Gregory Fleming, conspired with others in Costa Rica to fraudulently sell beverage and greeting card business opportunities to U.S. citizens. The business opportunities purportedly included assistance in establishing, maintaining and operating the ventures.

The charges form part of the government’s continued nationwide crackdown on business opportunity fraud. Two co-conspirators who worked with Williams in Costa Rica, Stephen Schultz and Dilraj Mathauda, previously pleaded guilty in federal court in Miami and were sentenced in related cases. Charges against Williams’ co-defendants, as well as those against defendants Jeffrey Pearson and Sirtaj Mathauda in the related cases, remain pending.

In pleading guilty, Williams admitted that he worked for fraudulent companies known as USA Beverages Inc., Twin Peaks Gourmet Coffee Inc. and Cards-R-Us Inc. Beginning in 2005, USA Beverages sold business opportunities to own and operate coffee beverage display racks. USA Beverages rented office space in Las Cruces, N.M., and otherwise made it appear to potential purchasers that USA Beverages’ operations were fully within the United States. However, USA Beverages actually operated from Costa Rica.

After USA Beverages, Williams worked for Twin Peaks Gourmet Coffee Inc., which was a Florida and Colorado corporation. Twin Peaks also sold business opportunities to own and operate coffee beverage sale display racks. Twin Peaks rented office space in Fort Collins, Colo., to make it appear to potential purchasers that Twin Peaks’ operations were fully within the United States. However, Twin Peaks was actually operated from Costa Rica.

Williams later worked for Cards-R-Us Inc., which was a Nevada corporation that sold business opportunities to own and operate greeting card sale display racks. Cards-R-Us rented office space in Reno, Nev., to make it appear to potential purchasers that Cards-R-Us’ operations were fully within the United States. However, like USA Beverages and Twin Peaks Gourmet Coffee, Cards-R-Us was actually operated from Costa Rica.

Williams admitted that he and his co-conspirators made numerous false statements to potential purchasers of the business opportunities. Williams and other salesmen falsely told potential purchasers that the companies were established years earlier, had a significant number of distributors across the country, and had a track record of success. Posing as references purportedly living in various cities in the United States, Williams and other conspirators told false tales of their success as business opportunity owners. Through these and other misrepresentations, the conspirators led purchasers to believe that they likely would earn substantial profits.

"Scam artists who engage in schemes like this one cause major financial hardship for consumers who are trying to start a business and earn an honest living," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "Business opportunity fraud is a serious crime that we will pursue aggressively, as this prison sentence demonstrates."

Assistant Attorney General West commended the investigative efforts of the Postal Inspection Service, especially the offices based in Miami and Phoenix. Assistant Attorney General West also commended the Federal Trade Commission, which previously brought a related civil suit and made a criminal referral. This matter is being prosecuted by trial attorneys Jeffrey Steger and Alan Phelps in the Justice Department’s Office of Consumer Litigation.

WASHINGTON – A former executive from HannStar Display Corporation has agreed to plead guilty and to serve jail time in the United States for participating in a global conspiracy to fix the price of thin-film transistor liquid crystal display (TFT-LCD) panels, the Department of Justice announced today.

According to a one-count felony charge filed today in U.S. District Court in San Francisco, Jui Hung "Sam" Wu conspired with others to suppress and eliminate competition by fixing the prices of TFT-LCD panels. Wu, a resident of Taiwan and the former executive director of global sales and marketing of HannStar, a Taiwan-based corporation, participated in the conspiracy from as early as Sept. 21, 2001, until on or about Jan. 31, 2006.

Under his plea agreement, which is subject to court approval, Wu has agreed to serve seven months in jail, to pay a $20,000 criminal fine and to assist the department in its ongoing TFT-LCD investigation.

TFT-LCD panels are used in computer monitors and notebooks, televisions, mobile phones and other electronic devices. By the end of the conspiracy period, the worldwide market for TFT-LCD panels was valued at $70 billion. Companies directly affected by the LCD price-fixing conspiracy are some of the largest computer and television manufacturers in the world, including Apple, Dell and Hewlett Packard.

The department charged that Wu participated in a conspiracy in which the participants met and agreed to charge prices of TFT-LCD panels at certain predetermined levels. The participants in that conspiracy also issued price quotations in accordance with the agreements reached and exchanged information on the sales of TFT-LCD panels for the purpose of monitoring adherence to the agreed-upon prices, the department said.

As a result of this investigation, to date, more than $890 million in criminal fines have been obtained.  Including today’s filing, 21 executives and eight companies have been charged in the department’s ongoing investigation into price fixing in the LCD industry.

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

Today’s charge is the result of a joint investigation by the Department of Justice Antitrust Division’s San Francisco Field Office and the FBI in San Francisco.

Anyone with information concerning illegal conduct in the TFT-LCD industry is urged to call the Antitrust Division’s San Francisco Field Office at 415-436-6660 or visit www.justice.gov/atr/contact/newcase.htm.

About the MOVE Act

 

Enacted in 1986, the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA) protects the right of service members to vote in federal elections regardless of where they are stationed. This law requires that states and territories allow members of the U.S. Uniformed Services and merchant marine, their family members and U.S. citizens residing outside the United States to register and vote absentee in elections for federal offices.

 

UOCAVA was expanded significantly in 2009, when Congress passed the Military and Overseas Voter Empowerment (MOVE) Act to provide greater protections for service members, their families and other overseas citizens.  Among other provisions, the MOVE Act requires states to transmit validly-requested absentee ballots to UOCAVA voters no later than 45 days before a federal election, when the request has been received by that date, except where the state has been granted an undue hardship waiver approved by the Department of Defense for that election.

 

The Department of Defense determines whether to grant waivers to states that are unable to comply with the MOVE Act requirement to mail ballots by the 45th day before a federal election.  This year, 12 states applied for waivers.

• Denied Waivers: Alaska, Colorado, the District of Columbia, Hawaii, the U.S. Virgin Islands and Wisconsin.
• Approved Waivers: Delaware, Massachusetts, New York, Rhode Island and Washington.
• Withdrawn Waiver Request: Maryland.

DOJ Enforcement of the MOVE Act

 

In the past several months, the department has worked to aggressively enforce UOCAVA and the MOVE Act in order to ensure that all military and overseas voters can exercise their right to vote, and have their votes counted, in the upcoming federal election on Nov. 2, 2010. The department has devoted significant resources to ensuring successful implementation of the MOVE Act including forming a team of attorneys to monitor state compliance with the Act’s requirements. 

 

MOVE Act Lawsuits:

 

The department has filed five lawsuits against states (Wisconsin, Guam, New York, New Mexico and Illinois) to date to compel compliance with the law.

• On Sept. 10, 2010, the department filed a lawsuit against Wisconsin. This lawsuit was resolved by a consent decree and signed by the court on Sept. 15, 2010. The agreement provides additional time, until Nov. 19, 2010, for receipt of absentee ballots to ensure eligible military and overseas voters have sufficient time to cast and return their votes and to have them counted. The agreement also required Wisconsin officials to take certain steps to ensure that all local election offices in the state sent absentee ballots to military and overseas voters by no later than Oct. 1, 2010. Under the agreement, Wisconsin will provide a 49-day window for military and overseas voters to receive, mark and submit their ballots to ensure sufficient time to have their ballots counted. 
• On Oct. 6, 2010, the department filed a lawsuit against Guam seeking emergency relief to help ensure that uniformed service voters and other overseas citizens have the opportunity to participate in the upcoming federal elections. This lawsuit was filed because Guam failed to mail ballots to affected voters by the Sept. 18, 2010, deadline. On Oct. 13, 2010, the federal district court in Guam held a hearing and granted the department’s request for permanent injunctive relief.
• On Oct. 12, 2010, the department filed a lawsuit against New York. New York received a waiver to allow it to send ballots by Oct. 1, 2010, but more than 43,000 New York ballots were not sent by this deadline. The lawsuit was resolved by a consent decree, signed by the court on Oct. 19, 2010. The decree provides additional time, until Nov. 24, 2010, for receipt of absentee ballots to ensure eligible military and overseas voters have sufficient time to cast and return their votes and to have them counted.
• On Oct. 12, 2010, the department filed a lawsuit against New Mexico. This lawsuit was resolved by a consent decree that provides additional time for overseas voters whose ballots were mailed late to return those ballots and have them counted. Election officials in six counties (Curry, Los Alamos, McKinley, Rio Arriba, Sandoval and Taos) mailed ballots up to four days late; the settlement agreement provides that ballots sent by Election Day and received up to Nov. 6, 2010, four days after Election Day, will be counted. The district court approved the consent decree and entered it as an order of the court on Oct. 14, 2010.
• On Oct. 22, 2010, the department filed a lawsuit against Illinois, accompanied by a consent decree that the court signed that same day. The settlement provides additional time beyond the state’s existing Nov. 16, 2010, deadline – 14 days after Election Day – for receipt of ballots from military and overseas voters in six counties: Boone, Hancock, Jersey, Massac, Schuyler and St. Clair. The settlement would also extend the date by which ballots from those counties must be postmarked from Nov. 1 to Nov. 2, 2010. In addition, the settlement requires that any voters who asked to receive their ballots electronically, but were sent the ballot by mail instead, be transmitted a ballot by the requested electronic method.

MOVE Act Agreements:

 

The department has reached out-of-court agreements with nine other jurisdictions (Alaska, Colorado, DC, Hawaii, Kansas, Mississippi, Nevada, North Dakota and Virgin Islands) to ensure timely receipt of ballots by overseas and military voters. These agreements generally require relief such as mailing out the ballots by the 45th day, an extension of time to count ballots that are received after election day where the ballots were mailed later than the 45th day; express delivery of ballots that were not sent by the 45th day; and notice to affected voters.

• On Sept. 2, 2010, the department reached an agreement with the U.S. Virgin Islands, which committed to sending absentee ballots for federal office (the Virgin Islands’ Delegate to Congress) on or before Sept. 18, 2010, the 45th day before the election.
• On Sept. 15, 2010, the department announced its agreement with Alaska, which expedited the candidate certification procedures for its Aug. 24, 2010, primary election so that it was able to send out an official absentee ballot to all UOCAVA voters no later than Sept. 18, 2010.  This date for sending the official ballot is 45 days in advance of the federal general election, thus ensuring that eligible military and overseas voters have sufficient time to receive, cast and return their ballots and to have their votes counted. 
• On Sept. 16, 2010, the department reached an agreement with Hawaii. Hawaii’s primary election on Sept. 18, 2010, precluded the state from sending absentee ballots to military and overseas voters by the MOVE Act’s ballot transmittal deadline of Sept. 18, 2010 – the 45th day before the Nov. 2, 2010, federal general election. To ensure that the state’s military and overseas voters have sufficient time to receive, cast and return their ballots in time for them to be counted in the Nov. 2, 2010, election, the department and the state reached an agreement requiring Hawaii to send out ballots by express delivery service no later than Sept. 24, 2010, and to provide voters with the means to return their completed ballots by express delivery free of charge. Earlier this year, Hawaii enacted legislation, effective on Jan. 1, 2011, which moves Hawaii’s primary date to the second Saturday in August in every even-numbered year to help ensure compliance with UOCAVA’s 45-day advance ballot mailing requirement in future federal general elections.
• On Sept. 17, 2010, the department announced its agreement with Colorado, which required the state to ensure that its counties sent an official absentee ballot to UOCAVA voters no later than Sept. 18, 2010, thus ensuring that eligible military and overseas voters have at least 45 days to receive, cast and return their ballots in time for them to be counted in the Nov. 2, 2010, election.
• On Sept. 17, 2010, the department reached an agreement with the District of Columbia, under which the District sent absentee ballots to military and overseas voters no later than Oct. 4, 2010, and will provide additional time -- until Nov. 19, 2010 -- for receipt of absentee ballots. The District passed emergency rules embodying these new deadlines, which will ensure that eligible military and overseas voters have at least 45 days to receive, cast and return their ballots in time for them to be counted in the Nov. 2, 2010, election. Earlier this year, the Council of the District of Columbia adopted a “Sense of the Council Primary Election Timing Resolution of 2010” acknowledging that the District needed to enact legislation to move its primary election for federal offices to a date no later than the first Tuesday of the first full week of August, beginning in 2012.
• On Oct. 8, 2010, the department announced that it reached an agreement with Nevada. Following inquiries from the department, Nevada reported that due to a ballot printing delay, one of its counties, Elko County, did not send absentee ballots by the 45th day before the general election to its UOCAVA voters who had requested ballots by that date. To address this MOVE Act violation and permit these voters to have a 45-day period to receive, mark and return their ballots, the Nevada Secretary of State adopted an emergency regulation to provide an additional six days, until 5:00 P.M. PDT on Nov. 8, 2010, for Elko County’s UOCAVA voters to return their ballots, provided they are executed and sent by Election Day.
• On Oct. 8, 2010, the department reached an agreement with North Dakota to remedy the state’s MOVE Act violations. Following inquiries from the department, North Dakota state officials informed the Department that 13 counties sent ballots by up to six days after the Sept. 18 deadline: Benson, Bottineau, Burleigh, Cass, Cavalier, Dickey, Grand Forks, Mercer, Mountrail, Pembina, Ransom, Traill and Walsh. To remedy this violation, North Dakota has required canvassing boards in the affected counties to meet to canvass the election results six days after the election, to provide sufficient time for late-mailed ballots to be received, executed and returned.
• On Oct. 15, 2010, the department announced its agreement with Kansas. Following inquires from the department, Kansas state officials reported that seven of its counties failed to send ballots by the Sept. 18, 2010, deadline:  Marshall, Finney, Jackson, Hamilton, Wabaunsee, Ellis and Stevens Counties.  Under the agreement, the state will take actions to ensure that counties provide at least 45 days for the transmission, execution and return of ballots to all qualified UOCAVA voters who requested absentee ballots on or before Sept. 18, 2010, and will extend the receipt deadlines in those counties as commensurate with the delay in each of those counties in sending ballots.
• On Oct. 15, 2010, the department announced its agreement with Mississippi. Following inquiries from the department, Mississippi state officials reported that the ballots for UOCAVA voters from 22 counties who had requested ballots on or before Sept. 18, 2010, were not sent at least 45 days before the federal general election: Adams, Alcorn, Attala, Clay, Coahoma, Covington, Forrest, Hinds, Jasper, Jones, Lafayette, Lamar, Montgomery, Neshoba, Perry, Pontotoc, Tishomingo, Union, Warren, Washington, Webster and Yazoo.  Under the agreement, Mississippi will extend the deadline for the receipt of ballots from military and overseas voters – ballots from eligible voters who requested ballots by Sept. 18, 2010, that are executed and sent by Nov. 2, 2010, and received by 7:00 p.m. on Nov. 8, 2010, will be counted. 

The Department of Justice is firmly committed to ensuring that our men and women serving overseas have the opportunity to vote and to have that vote counted. The department is prepared to file suit against states that violate the MOVE Act when necessary to achieve compliance. More information about UOCAVA and other federal voting laws is available on the Department of Justice website at www.justice.gov/crt/voting/misc/activ_uoc.php. Complaints may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.

 

WASHINGTON – La ex ejecutiva de National Century Financial Enterprises (NCFE) Rebecca S. Parrett, 62, ha sido arrestada en México, anunciaron el Secretario de Justicia Auxiliar Lanny A. Breuer de la División Criminal, el Fiscal Federal Carter M. Stewart para el Distrito Sur de Ohio y la Alguacil Federal Cathy Jones del Distrito Sur de Ohio. Parrett huyó en marzo de 2008 después de que un jurado federal la condenó por cargos asociados a su papel en un fraude de $2.8 billones de dólares que causó el colapso de NCFE.

Las autoridades mexicanas arrestaron a Parrett en Ajijic, Jalisco, México, con base en información que les fue proporcionada por el Servicio de Alguaciles Federales en Columbus, Ohio. De acuerdo con las leyes de inmigración mexicanas, Parrett fue deportada inmediatamente. Las autoridades mexicanas acompañaron a Parrett a Los Ángeles, donde Alguaciles Federales Adjuntos la arrestaron a partir de la orden de arresto emitida después de su condena. Parrett comparecerá ante un juez federal en el Tribunal de Distrito Federal en Los Ángeles hoy, y luego será enviada a Columbus.

"No se permitirá que ejecutivos de empresas encontrados culpables por actividades fraudulentas escapen a la justicia huyendo de los Estados Unidos", dijo el Secretario de Justicia Auxiliar Lanny A. Breuer. "Como cualquier demandado condenado por un jurado, la Srta. Parrett enfrenta hoy las consecuencias de sus acciones".

"El Servicio de Alguaciles Federales siguió todas las pistas y dedicó incontables horas a encontrar a Parrett", dijo el Fiscal Federal Stewart. "Su persistencia permitió su arresto. Ahora, finalmente enfrentará a la justicia".

"El Servicio de Alguaciles Federales nunca titubeó ni se detuvo en su compromiso de llevar a Rebecca Parrett ante la justicia", dijo la Alguacil Federal Cathy Jones. "Hasta los fugitivos con fuertes recursos financieros dispuestos a dejar el país por muchos años, como lo hizo ella, siempre tendrán que mirar por arriba de sus hombros. El Servicio de Alguaciles Federales es conocido en todo el mundo por contar con los recursos necesarios para conducir investigaciones complejas de fugitivos, y este arresto nuevamente demuestra nuestro compromiso de asegurar la integridad del sistema de justicia criminal".

Un jurado condenó a Parrett, la ex vicepresidente del directorio, secretaria, tesorera, directora y propietaria de NCFE, el 13 de marzo de 2008, por cargos que incluyen conspiración, fraude de valores y fraude electrónico. Después de su condena, Parrett huyó. El 27 de marzo de 2009 había sido sentenciada a 25 años en prisión. También se le había ordenado entregar $1.7 billones en propiedad representativa del producto de la conspiración y pagar restituciones de $2.3 billones de dólares, individual y mancomunadamente con otros demandados.

NCFE, basada en la época en Dublin, Ohio, era una de las principales empresas financieras de servicios médicos en los Estados Unidos hasta que presentó la quiebra en noviembre de 2002. Parrett y otros ejecutivos de NCFE realizaron un ardid desde 1995 hasta el colapso de la empresa para defraudar a inversionistas y agencias de clasificación sobre la salud financiera de la empresa y cómo se utilizaría el dinero de los inversionistas. El tribunal observó que 275 proveedores de salud presentaron la quiebra parcial o totalmente debido al colapso de NCFE. Parrett y otros nueve ejecutivos fueron condenados o se declararon culpables en conexión con el fraude que llevó al colapso de la empresa.

La investigación de la desaparición de Parrett generó pistas en más de una docena de estados de EE.UU. y varios países extranjeros. Muchas agencias policiales federales, estatales y locales asistieron al Servicio de Alguaciles Federales en Columbus en la búsqueda de la fugitiva.

La investigación conjunta que permitió el arresto de Parrett incluyó asistencia de la Fuerza de Tarea de Fugitivos del Sur de Ohio [Southern Ohio Fugitive Task Force (SOFAST)]; el Departamento de Estado de EE.UU., el Servicio de Seguridad Diplomática; el Servicio de Impuestos Internos - División de Investigaciones Criminales; la División de Policía de Columbus, el Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)]; el Departamento de Policía de Grove City, Ohio; el Buró de Identificación e Investigación Criminal de Ohio; la Administración de Control de Drogas; el Servicio de Inmigración y Control de Aduanas de EE.UU.; la Autoridad de Libertad bajo Palabra de Adultos de Ohio; y el Servicio de Inspección Postal de EE.UU. Los funcionarios también expresaron su gratitud a las autoridades mexicanas por su importante asistencia en este asunto.