District Not Recorded

WASHINGTON – Miami-area residents Emilio and Maria Haber and Detroit-area residents Genna Yates and Darryl Nichols pleaded guilty yesterday for their roles in a Detroit-area diagnostic testing fraud scheme, the Departments of Justice and Health and Human Services (HHS) announced

 

Emilio Haber, 51; Maria Haber, 44; Genna Yates, 30; and Darryl Nichols, 51, each pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Patrick J. Duggan of the Eastern District of Michigan.  At sentencing, the defendants each face a maximum penalty of 10 years in prison and a $250,000 fine.

According to plea documents, Emilio Haber conceived and oversaw fraud schemes at two clinics, Ritecare LLC and CompleteHealth LLC. Emilio Haber incorporated and opened Ritecare and CompleteHealth in the state of Michigan in 2007. CompleteHealth merged into Ritecare in July 2008. According to court documents, while operating CompleteHealth and Ritecare, Emilio Haber and his co-conspirators billed Medicare for medically unnecessary tests and services, including, but not limited to, nerve conduction studies. Emilio Haber obtained patients for the clinics through the payment of kickbacks to Medicare beneficiaries and patient recruiters. Emilio Haber admitted that he and other co-conspirators paid patient recruiters $100-$150 per patient obtained, with $50-$75 to go to the patient in exchange for visiting Ritecare and subjecting themselves to medically unnecessary tests.

 

To justify the medically unnecessary tests, Emilio Haber admitted that he and other co-conspirators told patient recruiters to instruct the patients to feign certain symptoms. Emilio Haber and other co-conspirators also directly instructed patients to feign symptoms. The kickbacks paid to the recruiters and the patients were contingent upon the Medicare beneficiaries identifying the symptoms necessary to justify medically unnecessary tests. Consequently, the patients’ medical records contained false or fabricated symptoms allowing Ritecare to deceive Medicare as to the legitimacy and medical necessity of the tests it performed.

 

Between approximately August 2007 and approximately October 2009, Haber and his co-conspirators at CompleteHealth and Ritecare submitted and/or caused to be submitted approximately $8.5 million in fraudulent claims to the Medicare program for medical and testing services that were medically unnecessary and procured through the payment of kickbacks. Medicare paid approximately $6.3 million of those claims.

 

According to plea documents, Maria Haber, Emilio’s wife, admitted that she incorporated CompleteHealth on Sept. 20, 2007. Maria Haber further admitted that she and her co-conspirators, including her husband, billed Medicare for medically unnecessary tests and services at CompleteHealth. Maria Haber also admitted that she obtained patients for the CompleteHealth scheme through the payment of kickbacks to recruiters.

 

Darryl Nichols and Genna Yates, both patient recruiters, admitted in plea documents to recruiting Medicare beneficiaries to Ritecare and CompleteHealth by paying kickbacks to the beneficiaries. Nichols and Yates also admitted that they received from the owners and employees of Ritecare $75 to $150 per patient they recruited; that they paid the beneficiaries a portion of the kickbacks and kept the rest for themselves; and that they coached patients to feign symptoms at the direction of the owners and employees of Ritecare and CompleteHealth.

 

Yates caused the submission of approximately $840,565 in fraudulent billings by Ritecare, as well as several other health care companies. Medicare paid approximately $630,506 of those claims. Nichols caused the submission of approximately $581,211 in fraudulent billings by Ritecare, as well as several other clinics. Medicare paid approximately $383,610 of those claims.

 

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

 

This case was prosecuted by Assistant Chief John K. Neal and Trial Attorney Gejaa T. Gobena of the Criminal Division’s Fraud Section.  The case was investigated by the 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 Eastern District of Michigan.

 

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’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 — Attorney General Eric Holder recognizes 303 Department of Justice employees for their distinguished public service today at the 58th Annual Attorney General Awards Ceremony. Fifty-five other individuals outside of the department are also honored for their work. Held at DAR Constitution Hall, this annual ceremony recognizes both department employees and others for their dedication to carrying out the Department of Justice’s mission.

 

“ It is my pleasure to congratulate this year’s Attorney General Award winners and to recognize their extraordinary contributions,” Attorney General Holder said.  “Not only is their service to our nation inspiring, it is strengthening the work of the Justice Department at every level and making a powerful difference for people across our country, and far beyond. This year’s awardees exemplify the department’s finest traditions, and I am privileged, and grateful, to count them as colleagues.”

 

Attorney General Holder and Acting Deputy Attorney General Gary G. Grindler presented the Attorney General’s Award for Exceptional Service – the department’s highest award – to two teams this year. The awards are given to teams involved in the investigation and prosecution of the largest healthcare fraud settlement ever obtained by the department involving Pfizer Inc., and the investigation and prosecution of those involved in an al-Qaeda plot against the New York City subway system.

 

The Attorney General’s Award for Exceptional Service is presented to a team for its exceptional determination and coordination in the investigation and prosecution of off-label promotion and kickbacks by Pfizer Inc. and its employees. The $2.3 billion civil and criminal resolution was the largest health care fraud settlement in the history of the Department of Justice, and the $1.3 billion criminal fine is the single largest ever paid.

 

From the U.S. Attorney’s Office for the District of Massachusetts, recipients include: Sara Miron Bloom,Chief of Affirmative Litigation; Assistant U.S. Attorneys Susan M. Poswistilo and Zachary A. Cunha; from the U.S. Attorney’s Office for the Eastern District of Pennsylvania, Deputy Chief for Affirmative Matters Marilyn May, and Assistant U.S. Attorney Charlene Keller Fullmer; from the Eastern District of Kentucky,Assistant U.S. Attorneys Robin Gwinn and Cheryl D. Morgan; from the Department of Justice Civil Division Commercial Litigation Branch, Patricia L. Hanower and Sanjay M. Bhambhani, Senior Trial Counsels; and Colin M. Huntley, Trial Attorney; from the Civil Division’s Office of Consumer Litigation, Jill P. Furman,Assistant Branch Director and Mark L. Josephs,Trial Attorney; from the Office of the Inspector General (OIG) of the U.S. Department of Health and Human Services (HHS) Administrative and Civil Remedies Branch, Senior Counsels Mary Riordan and Nicole Hall; and from the HHS Food & Drug Administration, Anne K. Walsh, Associate Chief Counsel for Enforcement.

 

The Attorney General’s Award for Exceptional Service is also presented to a team who dedicated themselves to preserving the safety of the United States and its citizens by preventing an al-Qaeda plot to attack the New York City subway system. From the Department of Justice National Security Division (NSD) Office of Intelligence, Operations Section, recipients include Gabriel R. Sanz-Rexach,Section Chief; Stuart J. Evans, Deputy Section Chief; Alexandra Doumas, Counterterrorism Unit Chief; and Caren E. Somerwitz, Kimberly M. Schmid and Stephen C. Eglin,Attorney-Advisors; from the NSD’s Office of Intelligence, Litigation Section, Nancy J. Newcomb,Section Chief; from the NSD’s Counterterrorism Section, Sharon E. Lever,Deputy Chief; and William M. Narus,Trial Attorney; from the U.S. Attorney’s Office for the Eastern District of New York Violent Crimes and Terrorism Section, John Ross, Investigator; Berit W. Berger and James P. Loonam, Assistant U.S. Attorneys; Jeffrey H. Knox,Chief; and David M. Bitkower,Deputy Chief; from the U.S. Attorney’s Office for the District of Colorado, Timothy R. Neff, Greg Holloway and David Gaouette,Assistant U.S. Attorneys; from the FBI’s Denver Field Office, Steve W. Olson, Assistant Special Agent in Charge; Special Agents Eric C. Jergenson, J. Alexander Ferguson, A. Za Smith-Berthe, F. Rhion Hiller and Garrett V. Anderson; and Intelligence Analyst Collin Husic; from the FBI’s Baltimore Field Office, Special Agent Micheal J.L. Copeland; from the FBI’s New York Field Office, Donald F. Borelli,Assistant Special Agent in Charge; Special Agents Farbod Azad, John W. Tinning, Garrett M. Zito and Stephanie M. Buhl; Geralyn Custode, Supervisory Intelligence Analyst; and James B. Dowling,Intelligence Analyst; from the FBI’s Newark, N.J., Field Office, Unit Chief Jay S. Tabb Jr. and Assistant Section Chief William F. Sweeney Jr.; from the FBI’s Los Angeles Field Office, Assistant Special Agent in Charge Paul M. Abbate and Supervisory Special Agent Tyrone Power; from the FBI’s Washington Field Office, C. Bryan Paarmann,Assistant Section Chief; Tara A. Bloesch, Supervisory Special Agent; and Special Agent Henry C. Heim; from the FBI’s Counterterrorism Division, Supervisory Special Agent Matthew L. Goard; and Intelligence Analysts Elizabeth Nagel, David Ring, Sandra Wenglikowski and Frederick Marcks; from the FBI’s National Security Branch, Intelligence Analyst Natalie Pathwick-Paszyc; from the FBI’s Directorate of Intelligence, Section Chief Jennifer E. Ley and Lauren B. O’Brien, Intelligence Analyst; from the FBI Office of General Counsel, Assistant General Counsels Christopher N. Hamilton and Kathleen Adams Veneri; and Alan Ciammaichella, Task Force Officer; from U.S. Immigration and Customs Enforcement (ICE), Special Agent Robert Norman Marten and Task Force Officers Jason Cassidy and Travis F. McFarren; from the U.S. Department of Homeland Security Transportation Safety Administration, Michael C. Neener,Federal Air Marshal; and from the New York Police Department, Task Force Officers Michael Carney, Angel Luis Maysonet and Jody Allan Almodovar.

 

The Attorney General’s Award for Exceptional Heroism recognizes an extraordinary act of courage and voluntary risk of life during the performance of official duties. Two awards are presented this year.

 

The Attorney General’s Award for Exceptional Heroism goes to the Drug Enforcement Administration (DEA) Foreign-deployed Advisory Support Team agents, along with their Afghan National Police counterparts, who participated in a joint operation with American and coalition forces in Badghis Province, Afghanistan, to execute an Afghan search warrant at Darreh-ye Bazaar.

 

Award recipients include: Group Supervisor Patrick J. McDarby, and Special Agents Forrest N. Leamon (posthumous), Chad L. Michael (posthumous), Michael E. Weston (posthumous), Andrew P. Harris, David L. Claassen and David L. King. During the mission, one of the military helicopters crashed, claiming the lives of Special Agents Leamon, Michael and Weston and seven U.S. military personnel. In disregard to their own safety, Group Supervisor McDarby and Special Agents Harris, King and Claassen displayed extraordinary heroism at the crash site by evacuating, providing aid, protecting their injured colleagues and recovering the remains of their fallen comrades.

The Attorney General’s Award for Exceptional Heroism also goes to James N. Chios who, while in Afghanistan, saved the life of two wounded soldiers by providing urgent medical care when the military unit in which he was embedded was ambushed by a superior enemy force attacking from multiple elevated positions. He then risked his life by leaving the protection of cover and engaging the enemy.

The Edward H. Levi Award for Outstanding Professionalism and Exemplary Integrity pays tribute to the memory and achievements of former Attorney General Edward H. Levi, whose career as an attorney, law professor and dean, and public servant exemplified these qualities in the best traditions of the department. This year, the award is presented to Michael F. Hertz,Deputy Assistant Attorney General of the Commercial Litigation Branch for the Civil Division.

 

Hertz has shaped the way the False Claims Act and qui tam provisions are interpreted and used, and has been instrumental in defending the constitutionality of the provisions themselves. He is a relentless advocate of the government's interest, and exhibits uncompromising professionalism, integrity, and judgment in a manner that serves as an example to attorneys and support staff. His distinguished career has exemplified the ideals of public service for more than 33 years.

 

The Mary C. Lawton Lifetime Service Award recognizes employees who have served at least 20 years in the department and have demonstrated high standards of excellence and dedication throughout their careers. This year’s award is presented to William L. Taylor,Judicial Security Inspector for the Southern District of Ohio of the U.S. Marshals Service. Taylor is honored for his exceptional leadership and sustained role on the U.S. Marshals Service Critical Incident Response Team (CIRT). During his involvement with CIRT for the past two decades, Taylor has provided outstanding aid to his fellow employees during times of national disasters and personal crisis.

 

The William French Smith Award for Outstanding Contributions to Cooperative Law Enforcement is an honorary award granted to recognize state and local law enforcement officials who have made significant contributions to cooperative law enforcement endeavors. This year’s award is presented to Jeff Rich ,Detective for thePlano, Texas, Police Department for his exceptional work to combat sexual exploitation crimes against children. His work includes sustained and significant contributions to promote cooperation and coordination with local, state and federal law enforcement agencies, as well as his training initiatives which have reached a national audience.

 

The William French Smith Award also goes to partners of the U.S. Marshals Service of the Northern District of Ohio. Recipients include: Michael McGrath,Chief of the Cleveland Police Department; Bob Reid,Sheriff of the Cuyahoga County Sheriff’s Office; James Repicky,Chief of the Euclid Police Department; Timothy Malley, Chief of the Lakewood Police Department; Andres Gonzalez, Chief of the Cuyahoga Municipal Housing Authority Police Department; Richard Walling,Chief of the Westlake Police Department; James Brosius,Chief of the Chagrin Falls Police Department; Sara Andrews, Deputy Director of the Ohio Adult Parole Authority; Augustus Hall,Chief of the Akron Police Department; Patrick Berarducci,Chief of the Medina Police Department; Drew Alexander,Sheriff of the Summit County Sheriff’s Office; Duane Whitely,Chief of the Elyria Police Department; Cel Rivera,Chief of the Lorain Police Department; Philip Messer,Chief of the Mansfield Police Department; J. Steve Sheldon,Sheriff of the Richland County Sheriff’s Office; Charles Roub,Chief of the Shelby Police Department; Peter Tobin,Superintendent of the Ohio Bureau of Criminal Identification and Investigation; Bruce Birr,Deputy Sheriff of the Lucas County Sheriff’s Office; Michael Navarre,Chief of the Toledo Police Department; Jack Nichols,Chief of the Boardman Township Police Department; Timothy Bowers,Chief of the Warren Police Department; and Jimmy Hughes,Chief of the Youngstown Police Department.

 

As partners of the U.S. Marshals Service-led Northern Ohio Violent Fugitive Task Force (NOVFTF), the recipients have served as an inspiration to other federal, state, and local law enforcement officers. Under the team’s leadership, NOVFTF closed more than 6,300 felony warrants and apprehended more than 4,600 felony fugitives in the Northern District of Ohio.

 

The Attorney General’s Award for Meritorious Public Service is the top public service award granted by the Department of Justice, and is designed to recognize the most significant contributions of citizens and organizations that have assisted the department in the accomplishment of its mission and objectives. This year’s award is presented to Kevin Brown, Executive Director of the Trinity Christian Community in New Orleans. Brown receives the award for his work in the Hollygrove neighborhood of New Orleans where, in the aftermath of Hurricane Katrina, he incorporated efforts to rebuild the city into his organization’s mission.

 

The Attorney General’s Award for Distinguished Service is the Justice Department’s second highest award for employee performance. The recipients of this award exemplify the highest commitment to the department’s mission. Fifteen awards are presented this year to individuals and teams.

One award is presented to Robert L. Wilson, Supervisory Correctional Officer of the Federal Correctional Institution of Cumberland, Md. Wilson displayed the highest level of bravery and dedication to duty during an institutional disturbance on Sept. 5, 2009, at the Cumberland facility. Wilson’s bravery, compassion, and commitment are a reflection of dedication and professional correctional excellence.

The Attorney General’s Award for Distinguished Service is also presented to a team recognized for its extraordinary work in achieving a resolution of the Cobell v. Salazar litigation that is fair to the plaintiffs, and encourages a better relationship between the Department of the Interior (DOI) and the hundreds of thousands of Native Americans with whom it has a trust relationship. Recipients of the award include members of the Department of Justice Civil Division Corporate/Financial Litigation Section: Michael F. Hertz,Deputy Assistant Attorney General; J. Christopher Kohn,Director; Robert Kirschman, Deputy Branch Director; John T. Stemplewicz,Special Litigation Counsel; and Michael J. Quinn,Trial Attorney.

The Attorney General’s Award for Distinguished Service is also presented to a team for directing the largest and most successful identity theft and hacking investigation and prosecution ever conducted in the United States. The team’s work resulted in the identification of an international hacking and credit card theft ring; their apprehension in the United States, Middle East, and Asia; and their conviction before American and foreign courts. From the department Criminal Division Computer Crime and Intellectual Property Section, members include: Howard Cox ,Assistant Deputy Chief; Kimberly Kiefer Peretti,formerSenior Counsel; and Trial Attorneys Evan C. Williams and Jenny C. Ellickson; from the U.S. Attorney’s Office for the District of Massachusetts Stephen P. Heymann,Assistant U.S. Attorney; from the U.S. Attorney’s Office for the Eastern District of New York, William Campos, Assistant U.S. Attorney; from the U.S. Attorney’s Office for the District of New Jersey Computer Hacking and Intellectual Property Section, Erez Liebermann,Chief; and Seth B. Kosto,Assistant U.S. Attorney; from the U.S. Attorney’s Office for the District of Minnesota, Timothy C. Rank,Assistant U.S. Attorney; from the U.S. Attorney’s Office for the Southern District of California, Orlando Gutierrez,Assistant U.S. Attorney; and from the U.S. Secret Service, Special Agents Peter Gannon, Andrew J. Bonillo Jr., Jeremy J. Ehrhardt, Stuart K. Van Buren and Richard K. LaTulip.

The Attorney General’s Award for Distinguished Service also goes to a team recognized for exemplary and highly effective work in U.S. v. Roy Belfast Jr., aka “Chuckie Taylor.” This groundbreaking case - the first use of a 1994 federal statute making torture under color of law by a U.S. citizen a crime - brought justice to civilian victims who suffered horrific abuse during Liberia’s recent civil war. Team members include from the Criminal Division’s Appellate Section John-Alex Romano, Trial Attorney; formerly of the Criminal Division’s former Domestic Security Section Christopher Graveline, Trial Attorney; and from the U.S. Attorney’s Office for the Southern District of Florida, Caroline Heck Miller and Karen Rochlin,Assistant U.S. Attorneys.

Also being awarded the Attorney General’s Award for Distinguished Service are members from the Department of Justice Environment and Natural Resources Division (ENRD) Environmental Enforcement Section, Robert E. Maher Jr.,Assistant Chief; David L. Dain,Senior Attorney; Eric D. Albert,Trial Attorney; and National Bankruptcy Coordinator Alan S. Tenenbaum. This team led the government effort in the Asarco bankruptcy case to recover more than $1.7 billion to fund environmental cleanup and natural resource restoration under a reorganization plan in the largest environmental bankruptcy case in U.S. history. The team organized and directed the work of more than 50 ENRD lawyers and paralegals, who collectively labored more than 50,000 hours on the case.

 

Also being awarded with the Attorney General’s Award for Distinguished Service for their outstanding and historic achievement in successfully negotiating a resolution in State of Washington v. Steven Chu and the U.S. Dept. of Energy are ENRD Environmental Defense Section Senior Attorney David J. Kaplan and Assistant Chief Russell M. Young. In thatlawsuit, the states of Washington and Oregon alleged that the Department of Energy (DOE) had failed to meet deadlines for cleaning up radioactive and chemically hazardous wastes at the Hanford Nuclear Reservation.  As a result of the team’s work, DOE and the states reached a settlement that addressed the complex technical challenges involved, while requiring DOE to clean up the waste as quickly as possible to prevent further harm to the environment.

The Attorney General’s Award for Distinguished Service is also presented to a team for its exceptional work in United States v. Mendez, and its underlying investigation, Operation Latina Libre. The recipients from the U.S. Attorney’s Office for the Western District of Tennessee include Stephen C. Parker, Assistant U.S Attorney; from the department Civil Rights Division Criminal Section Jonathan Skrmetti, Trial Attorney; from the FBI Memphis Field Office, Tracey L. Harris,Special Agent; and ICE Special Agent Greg Swearngin.

Also awarded the Attorney General’s Award for Distinguished Service are members from the U.S. Attorney’s Office for the Southern District of New York and the Office of the Solicitor General (OSG) for their extraordinary work in the Chrysler LLC bankruptcy proceedings. The recipients successfully litigated the motion to approve the government-financed sale of Chrysler LLC assets to a new company owned in part by Fiat, the United States and Canada. From the U.S. Attorney’s Office for the Southern District of New York, team members include: Jeannette A. Vargas, Chief of the Tax and Bankruptcy Unit; and Sean H. Lane, Tara M. LaMorte and Li Yu, Assistant U.S. Attorneys; from OSG, Malcolm L. Stewart, Deputy Solicitor General; and Trial Attorney William M. Jay.

 

Also receiving the Attorney General’s Award for Distinguished Service is the team recognized for its exemplary performance in Operation Phish Phry, a complex and sophisticated international computer intrusion, identity theft, and money laundering investigation. Operation Phish Phry signified the first successful joint cyber crime investigation conducted with law enforcement officials outside of the United States. Nearly 100 multi-national cyber criminals were charged in this landmark case.

 

Award recipients from the FBI’s Los Angeles Field Office include: Supervisory Special Agents Jason N. Smolanoff, Cameron Malin and Ramyar Tabatabaian; Special Agents Todd Munoz and Timothy L. Swec; and Dana J. Lind,Intelligence Analyst; from the FBI’s Bedford, N.H., Resident Agency Supervisory Senior Resident Agent Kieran L. Ramsey; from the FBI’s Atlanta Field Office, Special Agent John T. Bestor; from the FBI’s Washington Field Office, Ammar Y. Barghouty,Assistant Legal Attaché; and Kiffa Shirley, Special Agent; from the U.S. Attorney’s Office for the Central District of California, Ronald L. Cheng and Mark C. Krause,Assistant U. S. Attorneys; formerly of the Criminal Division’s Office of Enforcement Operations Elisa Castrolugo, Trial Attorney; from the Criminal Division’s Office of International Affairs, then-Department of Justice Attaché, Jeffrey Cole; and from the Los Angeles County Superior Court Judge Sally L. Meloch.

Another Attorney General’s Award for Distinguished Service is presented to the team involved with the relentless efforts in the investigation and prosecution of the Holy Land Foundation for Relief and Development. While billed as the largest Muslim charity in the United States, the Holy Land Foundation was actually the U.S.-based fundraising arm of the terrorist group Hamas. The team demonstrated unparalleled dedication and teamwork for more than eight years, despite being uprooted from their families and the disappointment of an initial mistrial. The team’s ability resulted in the unraveling of an international conspiracy and one of the most successful terrorism financing cases in the department’s history.

Award recipients from the U.S. Attorney’s Office for the Northern District of Texas are U.S. Attorney James T. Jacks; Nathan Garrett, Former Assistant U.S. Attorney; and Sherien Fatkin and Ofelia C. Perez,Paralegal Specialists; from the NSD Counterterrorism Section, Barry Jonas,Trial Attorney; and Laura B. Shuey,Paralegal Specialist; from the NSD Office of Intelligence, Julie L. Hamilton, Former AttorneyAdvisor; and Heidi P. Bauer,AttorneyAdvisor; from the Civil Division Federal Programs Branch, Elizabeth J. Shapiro,Deputy Branch Director; from the FBI’s Dallas Field Office, James S. Lewis,Supervisory Special Agent; Special Agents Lara L. Burns, Robert Miranda, Carrie C. Ward and David Kamel; Atef A. Shafik,Language Specialist; from the FBI’s Counterterrorism Division, Anne E. Armstrong, Financial Analyst; and from the Department of Defense (DOD) Department of the Army, Task Force Officer Eric Michael Wood.

 

Among those awarded with the Attorney General’s Award for Distinguished Service is the Attorney General’s Chief of Staff and Counselor, Kevin A. Ohlson.For more than 20 years, Ohlson has provided exemplary leadership and service to the Department of Justice and the nation. As Chief of Staff and Counselor to the Attorney General, Director of the Executive Office for Immigration Review, and Chief of Staff to the Deputy Attorney General, he has played a central role in and greatly advanced the programs of the department. As an adjudicator and prosecutor, Ohlson consistently performs in an outstanding fashion in his service to the nation.

 

Another employee being honored with the Attorney General’s Award for Distinguished Service is Associate Deputy Attorney General Scott N. Schools. Schools is honored for his exemplary performance in senior positions through the department over the course of more than 17 years. In his distinguished career, Schools has performed his duties in each position of increased responsibility in such an admirable manner that it serves as a model for excellence within the department. His tenure as Associate Deputy Attorney General, U.S. Attorney, General Counsel and First Assistant U.S. Attorney has been characterized by extraordinary skill and judgment, outstanding professionalism, unyielding devotion to duty and inspired leadership.

 

Seventeen individuals were awarded the Attorney General’s Award for Distinguished Service for their significant contribution to the review of Guantanamo detainees conducted last year by the Guantanamo Review Task Force. In various leadership roles, the recipients were responsible for directing, guiding, and supporting the review effort to ensure that the task force collected and analyzed all relevant information, and provided informed and reasoned recommendations to senior officials.

 

Recipients from the Guantanamo Review Task Force include: Matthew G. Olsen,Executive Director; from the NSD Litigation Section, Jay I. Bratt,FormerChief; from the NSD Foreign Investment Review Staff, Tyrone A. Brown,Attorney-Advisor; from the NSD Office of Intelligence, Operations Section, Robert J. Lloyd,Deputy Unit Chief; John T. Gibbs,Trial Attorney; Tracy P. Heckler,Program Specialist; NSD Former Chief of Staff Charles M. Steele; NSD Former Counsels to the Assistant Attorney General Andrew H. Tannenbaum and Kimberley E. Raleigh; and NSD Former Counsel for Law and Policy, Bradley T. Smith; from the U.S. Attorney’s Office for the District of Columbia, Rachel C. Lieber,Assistant U.S. Attorney; from the U.S. Attorney’s Office for the District of New Jersey, William E. Fitzpatrick,Deputy U.S. Attorney; from the U.S. Attorney’s Office for the Southern District of New York, Serrin A. Turner, Assistant U.S. Attorney; from the U.S. Attorney’s Office for the Eastern District of Virginia, Stephen M. Campbell,Assistant U.S. Attorney; from the department’s Justice Management Division (JMD) Office of the Controller Jolene A. Lauria Sullens,Deputy Assistant Attorney General/Controller; and Maureen E. Lyons, Confidential Assistant; and from the Department of Justice Office of Public Affairs, Dean Boyd, Public Affairs Specialist.

 

Awarded the Attorney General’s Award for Distinguished Service are members of the OIG for their outstanding work in conducting a review of the department’s involvement in the President’s Surveillance Program (PSP). The data collection exercise pursued under the PSP, and under the Foreign Intelligence Surveillance Act Amendments of 2008, involved unprecedented intelligence collection activities. The team’s 407-page report describes the department’s role in analyzing and certifying the legality of the PSP and the FBI’s use of the PSP for derived intelligence in its counterterrorism efforts. Team members include: M. Sean O’Neill and Jonathan A. Marks,Investigative Counsels; Daniel C. Beckhard,Deputy Assistant Inspector General; Kevin F. Becks, Senior Program Analyst; and Paralegal Specialist Dominic N. Russoli.

The final team to receive the Attorney General’s Award for Distinguished Service goes to members of the Office of Justice Programs (OJP) who quickly and effectively implemented provisions of the American Reinvestment and Recovery Act signed by President Obama. The act provided $2.7 billion of additional grant funding to OJP to support a broad range of crime prevention, law enforcement, and victim assistance activities throughout the nation. Under the team’s leadership, 99.5 percent of the funding was obligated by the end of the fiscal year, the highest rate among all of the federal cabinet agencies.

 

From the Office of Audit, Assessment, and Management’s Grants Management Division, award recipients include: Maureen A. Henneberg,Director; and Amy E. Callaghan,Deputy Director; from the Bureau of Justice Assistance, Pamela J. Cammarata,Associate Deputy Director; and Carol C. Poole,Acting Deputy Director; from the Office of Juvenile Justice and Delinquency Prevention, Katherine Darke Schmitt and Maria Swineford,Deputy Associate Administrators; from the Office of the Assistant Attorney General, Beth McGarry, Deputy Assistant Attorney General; and Brecht C. Donoghue,Policy Advisor; from the Office of Communications, Summer Duncan,Deputy Director; and Angella C. LaTour,Congressional Affairs Specialist; from the Office for Victims of Crime, DeLano A. Foster,Lead Victim Justice Program Specialist; and Richard T. Greenough,Victim Justice Program Specialist; from the Management, Planning, and Performance Branch, Sean A. Lovitt,Chief; from the Office of the Chief Financial Officer, Larry Hailes, Associate Chief Financial Officer; from the Office of the General Counsel, Charles T. Moses III,Deputy General Counsel; and Ingrid R. Sausjord,Attorney-Advisor; from the Systems Engineering & Operations Branch, Victor T. Pham,Chief; and from the Office of the Chief Information Officer’s Enterprise Application Development Division, Director Bruce W. Whitlock.

 

The Award for Excellence in Law Enforcement recognizes outstanding professional achievements by law enforcement officers of the Department of Justice.  There are two recipients of the award this year.

 

The Award for Excellence in Law Enforcement is presented tothe team who conducted a four year Attorney General’s Exempted Operation, known as Operation Beanpot, targeting five high-level drug trafficking and money laundering groups in the United States and Colombia. This operation led to a total of 78 arrests, the seizure of $9.65 million in U.S. currency, the seizure of 4,837 kilograms of cocaine and the seizure of 7.2 kilograms of heroin . Team members include: from the DEA’s New England Field Division Jeffrey Larocque,Group Supervisor; and Special Agents Dennis Barton, John Grella and Brian Tomasetta; from the DEA’s Bogotá Country Office, John S. Gazzara,Assistant Regional Director; Sean A. McDonough,Group Supervisor; and John P. Hegarty,Special Agent; from the U.S. Attorney’s Office for the District of Massachusetts, Zachary R. Hafer, Assistant U.S. Attorney; from the U.S. Department of Treasury Internal Revenue Service (IRS), Ryan Talbot,Special Agent; and from the Waltham, Massachusetts Police Department, Detective Lucas Hernandez.

 

Another Award for Excellence in Law Enforcement is presented to the U.S. Marshals Service Mexico City Foreign Field Office’s Jose Chavarria, Chief Inspector, for his outstanding work, dedication, and exceptional service in the apprehension of more than 500 international fugitives during fiscal years 2008 and 2009, and the extradition and deportation of more than 660 international fugitives. These accomplishments represent record highs for the U.S. Marshals Service. Since Chavarria’s assignment to Mexico City, he has managed the investigations and directed the arrests of 43 high profile felons.

 

The Attorney General’s Award for Exceptional Service in Indian Country recognizes extraordinary efforts by department employees that demonstrate the department’s commitment to fight crime in Indian Country. This award is being presented to the Executive Office for U.S. Attorney’s (EOUSA) Leslie A. Hagen,National Indian Country Training Coordinator, for her sustained commitment to improving the public safety of Native Americans. Hagen has developed training for federal, state, and tribal criminal justice and social service personnel on issues related to federal prosecution of violent crime in Indian Country. Most recently, she was involved in the development of the Attorney General’s Tribal Nations Listening Conference and Indian Country Initiative.

 

The Attorney General’s Award for Excellence in Management recognizes outstanding administrative or managerial achievements that have significantly improved operations and productivity, or reduced costs. Two of these awards are presented this year.

 

Cherie L. Rogers,ENRD’s Assistant Chief of the Environmental Defense Section, is awarded the Attorney General’s Award for Excellence in Management for her outstanding performance as the Assistant Chief for Administration and Training. Rogers works closely with various trial teams, masterfully handling all of the trial support logistics and financial planning for the attorneys, support staff, contractors, and experts. Also presented the Attorney General’s Award for Excellence in Management for her leadership is Robin C. Ashton, Executive Assistant U.S. Attorney for Management from the U.S. Attorney’s Office in the District of Columbia. Her oversight and direction have guided successful efforts to improve compliance and efficiency in the administrative processes throughout the office, which has affected employees of both District Court and Superior Court.

 

The Attorney General’s Award for Excellence in Information Technology recognizes outstanding achievements in applying information technology to improve operations and productivity, reduce or avoid costs, and solve problems. This award is presented to two teams this year.

The first team awarded the Attorney General’s Award for Excellence in Information Technology leads ENRD’s E-discovery Workgroup and advises ENRD attorneys on E-discovery matters in civil and criminal cases. They also lead civil and criminal E-discovery initiatives across the department and other federal agencies, and develop and conduct numerous training programs for various federal attorneys. From the EOUSA, Andrew D. Goldsmith, National Criminal Discovery Coordinator; from the ENRD Law and Policy Section, James O. Payne Jr.,Senior Counsel; ENRD Senior Attorney Sarah D. Himmelhoch; ENRD Trial Attorney Daniel S. Smith; from the ENRD Environmental Enforcement Section, Bethanne Walinskas,Program Specialist; and from the ENRD Office of Litigation Support, Director Richard D. Sutton.

 

Also receiving the Attorney General’s Award for Excellence in Information Technology is a team honored for its outstanding achievement in collaboratively developing and implementing an information technology (IT) solution that greatly improves the department=s national security classified information processing capabilities to support terrorism prosecutions and related national security classified matters. The team’s dedicated work under tight deadlines provided the department with a high speed IT classified litigation support solution that meets the needs of complex national security prosecutions.

 

From the NSD Executive Office, recipients include: David E. Borcherding,Supervisory Information Technology Specialist; and Information Technology Matthew P. Harvey and Robert L. Marshall; from the NSD Counterterrorism Section, Michael J. Keegan,Principal Deputy Chief; and Gregory A. Miller,Counterterrorism Specialist; from the U.S. Attorney’s Office for the Western District of North Carolina, Tucker Greer,Litigation Support Specialist; from the Information Systems Security Staff, Edward L. Shelkey, Chief Information Security Officer; and Daniel D. Hurd,Information Technology Specialist; from the EOUSA Office Automation Staff, Rick W. Sumrall,Information System Security Officer; and David N. Atkins Sr. and Glenn K. Shrieves, Information Technology Specialists; and from the JMD Office of the Chief Information Officer Enterprise Solutions Staff, Jeffrey L. Cotter , Director; and Dale Long and Peter D. Omberg, Deputy Directors.

The Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security recognizes outstanding achievements and contributions towards protecting U.S. national security. Two awards are presented this year.

 

The Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security is presented to the team that handled more than 240 appeals involving the detainees at Guantanamo Bay. In handling the lead cases, the team members worked closely with the senior leadership of the department, as well as with the Departments of Defense and State, and the CIA. Working under enormous pressure, they produced key briefs and memoranda, briefed high-level department officials, made critical strategic decisions, and produced tremendous results.

 

From the Civil Division Appellate Staff, team members include: Thomas M. Bondy, Assistant Branch Director; Douglas N. Letter, Appellate Litigation Counsel; Robert M. Loeb,Appellate Counsel; and Trial Attorneys Matthew M. Collette, Sharon M. Swingle, August E. Flentje, Anne M. Murphy, Sydney A. Foster, Henry C. Whitaker, Catherine Y. Hancock,and Michael P. Abate; from the Civil Division Federal Programs Branch, Terry M. Henry; James J. Gilligan,Assistant Branch Directors; Andrew I. Warden, Trial Attorney; from the Civil Division Commercial Litigation Branch, Phyllis Jo Baunach,Senior Trial Counsel; and from NSD Attorney Paul Ahern.

 

Another team receiving the Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security is a team that spearheaded Operation Render Safe, an investigation that led to the indictment, arrest, and conviction of more than 35 individuals and entities implicated in the provision of sensitive, military and dual use goods to the Islamic Republic of Iran. The team’s work has improved our national security, and serves as a model for related investigative and prosecutorial strategies.

 

Award recipients from U.S. Attorney’s Office for the Southern District of Florida include: Melissa Damian Visconti, Assistant U.S. Attorney; and Angel Martinez,Senior Intelligence Specialist; from the NSD Counterespionage Section, Steven W. Pelak ,Deputy Chief; and Ryan P. Fayhee,Trial Attorney; from the U.S. Department of Commerce Office of Export Enforcement, Michael Johnson,Special Agent in Charge; and Special Agents Michael Bollinger, Lauren Nieland and John Johnson; from DHS Senior Special Agents Dean Lang and Eric Caron; and from the DOD Defense Criminal Investigative Service Special Agent Blake Schnitker.

The Attorney General’s Award for Equal Employment Opportunity is the department’s highest award for performance in support of the Equal Employment Opportunity Program. This year’s recipient is FBI’s Deirdre Mignon Emmes,Supervisory Special Agent for the Criminal Investigative Division for her outstanding leadership and exemplary performance as the LGBT (Lesbian, Gay, Bisexual and Transgender) Special Emphasis Program Coordinator for the Los Angeles Field Office. In an effort to embrace the ideals that the FBI represents, she resolved to create one of the most ground-breaking and proactive programs in the nation.

The Attorney General’s Award for Excellence in Legal Support recognizes outstanding achievements in the field of legal support to attorneys by paralegal specialists and other legal assistants. The recipient in the Paralegal Category for this year is Julia P. Wilson,Supervisory Paralegal Specialist for the Federal Programs Branch of the Civil Division. Wilson receives the award for her outstanding leadership in providing litigation support for the past two years to a team of 50 attorneys litigating more than 200 habeas cases brought by detainees at Guantanamo Bay.

The Attorney General’s Award for Excellence in Legal Support in the Legal Support Category goes to Rita L. Mierzwa, Legal Clerk for the U.S. Trustee Program of the Office of the U.S. Trustee in the Chicago Executive Office for U.S. Trustees (EOUST). Mierzwa has demonstrated exceptional professionalism since joining the Region 11 staff in the immediate aftermath of the enactment of bankruptcy reform legislation. Her efforts led to sanctions against attorneys, debtors and others who abuse the bankruptcy system.

 

The Attorney General’s Award for Excellence in Administrative Support recognizes outstanding performance in administrative or managerial support by an administrative employee or secretary. This year, the award goes to four recipients including, Margaret A. Fenlon-Gore,Case Management Specialist for the Environmental Enforcement Section of ENRD; Deborah M. Chase,Administrative Officer for the U.S. Trustee Program in EOUST’s New Orleans Office; Laurene Aragon MacDonald,Support Staff Supervisor for the U.S. Attorney’s Office for the Southern District of California; and Karen Hamilton, Data Management Specialist for the Tax Division Civil Trial Section in the Northern Region.

 

The Claudia J. Flynn Award for Professional Responsibility recognizes a Department of Justice attorney who has made significant contributions in the area of professional responsibility by successfully handling a sensitive and challenging professional responsibility issue in an exemplary fashion and/or leading efforts to ensure that department attorneys carry out their duties in accordance with the rules of professional conduct. This year, John C. (Jack) Keeney ,former Deputy Assistant Attorney General for the Criminal Division, is being honored with this award. Mr. Keeney was a key leader of the department for nearly 60 years. He was a charter member of the Senior Executive Service, and is recognized for the exemplary professionalism and integrity with which he managed the department’s public corruption and electronic surveillance efforts.

 

The Attorney General’s Award for Outstanding Service in Freedom of Information Act Administration recognizes exceptional dedication and effort to the implementation of the Freedom of Information Act. This year’s recipient is Unit Chief for the Records Management Division of the FBI, Julia E. Eichhorst.Under Eichhorst’s leadership, the FBI Service Request Unit has successfully negotiated with requesters, ensuring that they receive the specific information they request while reducing the number of processed pages so that resources are not misused.

 

The Attorney General’s Award for Fraud Prevention recognizes exceptional dedication and effort to prevent, investigate and prosecute fraud, white-collar crimes and official corruption. Awards are presented to two teams this year.

 

An award is presented to the team who spearheaded the Antitrust Division’s work to help protect Recovery Act funds from procurement fraud by assisting federal, state, and local agencies in ensuring that measures are in place to insulate procurement and program funding processes from bid rigging and other procurement fraud. Antitrust Division members include John F. Terzaken III, Assistant Chief for the National Criminal Enforcement Section and E. Kate Patchen, Trial Attorney for the San Francisco Field Office. Patchen and Terzaken served as the co-chairs of the Antitrust Division’s Recovery Act Initiative aimed at training government officials to prevent, detect, and report efforts by individuals to unlawfully profit from the stimulus awards. As a result of the team’s resourcefulness and planning, the division was able to offer training to procurement officials, auditors, and investigators within weeks of the passage of the Recovery Act.

 

Also receiving the Attorney General’s Award for Fraud Prevention is the team who led the prosecution of United States v. BAE Systems (BAES). Years of detailed investigation and intense negotiations resulted in BAES’s guilty plea. The successful conclusion of this matter exemplifies the United States’ continued leadership in combating international corruption, and affirms the department’s willingness to investigate and appropriately resolve the most challenging of criminal cases. Team members from the Criminal Division Fraud Section include: Mark F. Mendelsohn, Deputy Chief; and Nathaniel B. Edmonds, Senior Litigation Counsel; from the FBI’s Northern Virginia Resident Agency Travis G. Wiehn,Special Agent; from the NSD Counterespionage Section, Patrick T. Murphy,Trial Attorney; from the General Services Administration Office of the Inspector General Nacieve Owens, Special Agent; from ICE, Theodore Schmitz,Special Agent; and from the DOD Defense Criminal Investigative Service James Hitchcock,Special Agent.

 

The Attorney General’s Award for Outstanding Contributions to Community Partnerships for Public Safety recognizes outstanding achievement in the development and support of community partnerships designed to address public safety within a community. The award recognizes the significant contributions of citizens and organizations that have assisted the department in the accomplishment of these programs. This year’s award recipient is Tyrone Parker,Executive Director for the Alliance of Concerned Men. Parker receives the award for his dedication to deterring gang violence and empowering young men to reach their potential.

 

The Cubby Dorsey Award for Outstanding Contributions by a Wage Grade System Employee recognizes extraordinary performance and contributions by wage grade system employees, including laborers, mechanics, and skilled craft workers. One award is presented this year to Henry R. Mills,Air Conditioning Equipment Mechanical Supervisor for the Federal Correctional Institution Williamsburg in Salters, S.C., of the Federal Bureau of Prisons (BOP). Mills’ initiative and diligence in investigating more efficient means of cooling 18 ice machines in use at the Federal Corrections Institution Williamsburg was exemplary. Through his efforts, the institution was able to reduce its environmental impact via a reduction of more than 2.5 million gallons of water annually, resulting in a savings to the institution of more than $100,000.

 

The Attorney General’s Award for Outstanding Contributions by a New Employee recognizes exceptional performance and notable accomplishments towards the department’s mission by an employee with fewer than five years of federal career service. Recipients include: Magdeline Amaro,Secretary for the Federal Correctional Institution in Miami of the BOP; Eric Fleisig-Greene, Trial Attorney for the Civil Division Appellate Staff; and from the U.S. Attorney’s Office for the Western District of New York, Joseph M. Tripi,Assistant U.S. Attorney.

The John Marshall Awards are the Department of Justice’s highest awards offered to attorneys, for contributions and excellence in specialized areas of legal performance.  Fourteen awards in nine categories are presented this year.

 

The John Marshall Award for Trial of Litigation is presented to attorneys from the Department of Justice Civil Division Commercial Litigation Branch for the team’s exceptional representation of the United States in three hearings before an international tribunal, regarding state-to-state disputes between the United States and Canada. The team’s ability to absorb a new set of litigation skills and use them to great effect against Canada’s very capable private counsel reflects well upon the department. Recipients include: Patricia M. McCarthy,Assistant Branch Director; Senior Trial Counsels Claudia Burke and Gregg M. Schwind; and Trial Attorneys, Maame Ewusi-Mensah Frimpong, Antonia R. Soares and Stephen C. Tosini.

 

The John Marshall Award for Trial of Litigation is also presented to Laura R. Bach, John G. Giovannelli and Sean P. Tonolli, Assistant U.S. Attorneys for the District of Columbia,for their involvementwith the investigation and prosecution of a violent Washington, D.C., gang known as “22nd Street.” The trial lasted more than nine months and included more than 75 motions, 70 witnesses, and introduced approximately 500 exhibits into evidence.

The John Marshall Award for Participation in Litigation was awarded to members of the Department of Justice’s Civil Rights Division Housing and Civil Enforcement Section. Award recipients include Timothy J. Moran,Deputy Chief; and Trial Attorneys Christopher J. Fregiato, Andrea K. Steinacker, Julie J. Allen, R. Tamar Hagler, Lucy G. Carlson and Jennifer L. Maranzano.This team is honored for its exceptional work in litigating United States v. Sterling, a major Fair Housing Act case alleging that the defendants unlawfully discriminated against African Americans, Hispanics and families with children at apartment buildings they owned and managed in Los Angeles County. The result required the defendants to pay a record $2.7 million in damages and civil penalties, the largest monetary payment ever obtained in the settlement of a case alleging housing discrimination.

Another John Marshall Award for Participation in Litigation is awarded to an attorney from the Department of Justice Tax Division for his outstanding work as lead counsel for the government in AT&T Inc. v. United States. Grover Hartt III,Senior Level Trial Attorney for the Civil Trial Section of the Southwestern Region, assembled and guided the government’s excellent trial team, developed its litigating strategy, oversaw an exceptionally complex and demanding discovery process – conducting crucial portions of it himself – and authored the briefs that resolved the case in the government’s favor.

The John Marshall Award for Support of Litigation is presented to the Criminal Division Office of International Affairs’ Randy Toledo,Deputy Director, and Kenneth J. Harris,Associate Director. This team is recognized for its outstanding contributions in the conception, negotiation, ratification, and implementation of the historic Extradition and Mutual Legal Assistance Treaties with the European Union (EU). This effort, led at its inception by the late Mark Richard, the department’s Counselor to the European Union in Brussels, spanned eight years and also involved the negotiation of 54 separate and complex implementing agreements with the individual EU member states. The treaties were the first law enforcement treaties entered into by the United States with the EU.

 

The John Marshall Award for the Handling of Appeals is presented to Charles W. Scarborough,Trial Attorney for the Appellate Staff of the Civil Division, and Judith A. Hagley,Attorney for the Appellate Section of the Tax Division.

 

Scarborough secured major victories under the False Claims Act that have enhanced the government=s ability to ensure integrity in areas such as Medicare and student loan programs. He successfully defended a variety of statutes and regulations against constitutional challenges, and his perseverance in his defense of the Child On-Line Protection Act over his decade in the department.

Hagley is honored for her exceptional skill and success in briefing and arguing the most influential and high-profile tax shelter cases to reach the Appellate Section. Her personal accomplishments in handling this sensitive, difficult, and complex litigation have laid the groundwork for success in the Tax Division and the IRS.

 

This year’s John Marshall Award for Providing Legal Advice is presented to Jonathan J. Wroblewski,Director for the Criminal Division’s Office of Policy and Legislation, for his exemplary and sustained role in leading the development of crime policy for the department. Wroblewski has also been an effective advocate on sentencing and criminal discovery issues, and has represented the department with the Judiciary, the White House, Congress and the public.

 

Also receiving this year’s John Marshall Award for Providing Legal Advice is the team who provided invaluable counsel to the White House, the Environmental Protection Agency (EPA), and the Departments of Transportation and Justice in the formulation of the groundbreaking joint rulemaking by EPA and the National Highway Traffic Safety Administration to reduce emissions of greenhouse gases from new motor vehicles. Team members from the ENRD Appellate Section include: Lisa E. Jones ,Assistant Chief; and David C. Shilton,Trial Attorney; from the ENRD Environmental Defense Section, Christopher S. Vaden,Deputy Chief; Thomas A. Lorenzen,Assistant Chief; and Jon M. Lipshultz,Senior Counsel for Appellate Matters; from the Civil Division Appellate Staff, Henry Thomas Byron III, Trial Attorney; and Mark B. Stern,Appellate Litigation Counsel; and from the Office of the Associate Attorney General,   Deputy Associate Attorney General A. Marisa Chun.

 

The John Marshall Award for Preparation or Handling of Legislation is awarded to a team for its outstanding performance in developing and advocating the department’s position on critical hate crimes legislation, entitled the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act of 2009. This landmark legislation strengthened and expanded federal laws prohibiting hate crimes by allowing prosecution of violence motivated by a victim’s sexual orientation, gender or disability. Team members from the Office of Legal Policy include: Rajesh De ,Deputy Assistant Attorney General; and Paul R. Almanza,Chief of Staff; from the Civil Rights Division Criminal Section, Mark J. Kappelhoff,Chief; Barbara K. Bosserman,Senior Legal Counsel; from the Civil Rights Division Policy and Strategy Section, Acting Chief Karen L. Stevens; and from the Office of Legislative Affairs Deputy Assistant Attorney General Judith C. Appelbaum.

 

The John Marshall Award for Asset Forfeiture is presented to members of the U.S. Attorney’s Office for the Southern District of New York for their extraordinary work in forfeiting assets on behalf of victims of the massive securities fraud executed by Marc Dreier. In addition to securing a preliminary forfeiture order that imposed a $746.7 million judgment against Dreier and ordered the forfeiture of Dreier’s interest in 177 properties worth more than $80 million, the team helped pioneer a model for handling simultaneous collateral litigation of forfeiture, bankruptcy and securities enforcement actions. Award recipients include: Sharon Cohen Levin, Chief for the Asset Forfeiture Unit; and Assistant U.S. Attorneys Jeffrey Alberts, Anna E. Arreola, Matthew L. Schwartz, Amy Lester and Jonathan R. Streeter.

The John Marshall Award for Alternative Dispute Resolution recipients are members of the Department of Justice Civil Division Commercial Litigation Branch. Shalom Brilliant, Senior Trial Counsel, and Kenneth S. Kessler, Trial Attorney, are honored for their achievements in utilizing Alternative Dispute Resolution (ADR) to settle more than 260 breach of contract lawsuits brought by owners of more than 780 federally-subsidized low-income rental apartment projects throughout the country. They utilized ADR to creatively reach a solution that avoided risks, and potentially saved the government hundreds of millions of dollars.

 

Also awarded the John Marshall Award for Alternative Dispute Resolution are members of ENRD. Award recipients include: David W. Harder,Trial Attorney for the Indian Resources Section; Stephen M. Macfarlane,Attorney for the Natural Resources Section; and Stacy R. Stoller, Attorney for the Law and Policy Section, for their analysis, incisive legal advice, and tireless negotiations in connection with the global settlement regarding the fish, water, and hydropower resources of the Klamath River Basin in Oregon and California. The team’s work with clients such as the Departments of Interior, Commerce, and Agriculture led to two historic agreements, the Klamath Basin Restoration Agreement and the Klamath Hydropower Settlement Agreement.

 

The John Marshall Interagency Cooperation in Support of Litigation Award is presented to the following team for their extraordinary efforts in defending the National Marine Fisheries Service’s 2008 biological opinion, and in working with the administration to develop and defend its new Adaptive Management Implementation Plan for the 2008 biological opinion. From ENRD Wildlife and Marine Resources Section, recipients include: Seth M. Barsky,Acting Chief; and Trial Attorneys Carter H. (Coby) Howell and Bridget K. McNeil;from the U.S. Army Corps of Engineers Office of Counsel of the Northwest Division, Gayle Lear, Assistant Division Counsel; from the Department of Commerce National Oceanic and Atmospheric Association Office of the Northwest Regional Counsel, Mark Eames,Attorney-Advisor; from the DOI Office of the Regional Solicitor Pacific Northwest Region, Duane Mecham, Attorney-Advisor; and from the Bonneville Power Administration, Deputy General Counsel for the Office of General Counsel Paul Majkut.

WASHINGTON – U.S. Army Major Roderick D. Sanchez pleaded guilty today to a one-count criminal information charging him with bribery for accepting money and items of value in return for being influenced in the awarding of Army contracts, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.

Sanchez, 45, of Pueblo, Colo., pleaded guilty in U.S. District Court for the District of Colorado. According to court documents, at various times from approximately 2004 through 2007, Sanchez was employed by the U.S. Army and deployed overseas in Afghanistan, Iraq and Kuwait as a contracting officer. Sanchez’s duties included reviewing bids submitted by contractors for Army contracts, recommending the award of Army contracts to specific contractors, and ultimately awarding those contracts to government contractors. Sanchez admitted that during that time period he accepted illicit bribe payments from foreign companies seeking to secure Army contracts. In return, Sanchez used his official position to steer Army contracts to these companies. During the course of this criminal scheme, Sanchez accepted Rolex watches, cash payments and other things of value totaling more than $200,000.

Sanchez faces a maximum prison sentence of 15 years, a fine of $250,000 and five years of supervised release following his prison term. Sanchez is scheduled to be sentenced on Jan. 19, 2011, at 8:30 a.m. before U.S. District Judge Christine M. Arguello.

This case is being prosecuted by Deputy Chief Justin V. Shur and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI, Army Criminal Investigation Command, Defense Criminal Investigative Service and Special Inspector General for Iraq Reconstruction.

WASHINGTON – Un supuesto miembro adicional de la pandilla "Nación Todopoderosa de Reyes y Reinas Latinos" (Latin Kings) ha sido acusado formalmente de su supuesto papel en una conspiración para cometer delitos organizados en Hammond, Ind., y otros lugares, anunciaron el Secretario de Justicia Auxiliar Lanny A. Breuer de la División Criminal y el Fiscal Federal David Capp del Distrito Norte de Indiana.

La acusación formal, emitida por un gran jurado federal el 22 de octubre de 2010, y revelada ayer en Hammond, acusa a Martín Anaya, alias "Lefty", 40, de Chicago, de conspiración para participar en actividades de delincuencia organizada. Los siguientes fueron acusados anteriormente en la conspiración: Alexander Vargas, alias "Pacman," 33, de Highland, Ind.; Sisto Bernal, alias "Cisco," alias "Shug," 44, de Chicago; Jason Ortiz, alias "Creeper," 27, de Chicago; y Brandon Clay, alias "Cheddar," alias "Swiss," alias "Slick," 23, de Chicago.

Se acusa a Anaya, además, en la acusación formal relevante de un cargo de homicidio y un cargo de utilizar y portar un arma de fuego para cometer homicidio durante y en relación con un delito violento. Además, la acusación formal relevante alega nuevos cargos contra Vargas, Ortiz y Clay por homicidio para promover la delincuencia organizada, y homicidio resultante del uso de un arma de fuego. Ortiz y Clay también fueron acusados anteriormente en la acusación formal original de asesinato para promover delincuencia organizada, homicidio resultante del uso de un arma de fuego, posesión de arma de fuego después de haber sido condenado por un delito mayor y posesión de armas de fuego robadas.

De acuerdo con la acusación formal relevante, la región sudeste de Latin Kings es responsable por al menos 15 homicidios. La acusación formal relevante alega específicamente que Vargas, Ortiz, Clay y otros miembros de los Latin Kings participaron en el asesinato de los miembros de pandillas rivales James Walsh y Gonzalo Díaz en la puerta de un bar en Griffith, Ind., en la mañana del 25 de febrero de 2007. La acusación formal relevante también alega que Ortiz, Clay y Anaya participaron en el asesinato de Christiana Campos el 22 de abril de 2009. Además, la acusación formal relevante alega que Clay participó con otros miembros de los Latin Kings en el homicidio de Edward Delatorre el 26 de noviembre de 2006. Además de los delitos violentos, la acusación formal relevante alega que los Latin Kings también distribuyeron más de 150 kilos de cocaína y 1,000 kilos de marihuana.

De acuerdo con la acusación formal relevante, Latin Kings es una pandilla con alcance nacional originada en Chicago y con sucursales por todos los Estados Unidos. Latin Kings es una pandilla callejera bien organizada con liderazgo específico y que está compuesta por regiones que incluyen capítulos múltiples. Los Latin Kings hacen valer sus reglas y promueven la disciplina entre sus miembros, candidatos a miembros y asociados a través del homicidio, intento de homicidio, conspiración para cometer homicidio, agresiones y amenazas contra quienes violen las reglas y representen una amenaza para los Latin Kings. Los miembros deben seguir las órdenes de miembros de jerarquía más alta, incluido aceptar tareas conocidas como "misiones".

El cargo de conspiración para cometer delincuencia organizada conlleva una sentencia máxima de prisión perpetua. Los cargos asociados a homicidio conllevan sentencia máximas de presión perpetua o pena de muerte. Los cargos de delincuente mayor en posesión de un arma de fuego y posesión de armas de fuego robadas conllevan cada uno una sentencia máxima de 10 años en prisión.

Anaya realizó su comparecencia inicial ayer ante el Juez Magistrado Federal Andrew Rodovich. Se formularán cargos contra los demás demandados ante el Juez Rodovich el 2 de noviembre de 2010, a la 1p.m.

Este caso está siendo investigado por el Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)]; el Buró de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos; la Administración de Control de Drogas, el Servicio de Inmigración y Control de Aduanas de EE.UU.; el Centro Nacional de Combate, Control y Coordinación contra Pandillas [National Gang Targeting, Enforcement & Coordination Center (GangTECC)]; el Centro Nacional de Inteligencia de Pandillas; el Departamento de Policía de Chicago; el Departamento de Policía de Griffith; el Departamento de Policía de Highland, Ind.; el Departamento de Policía de Hammon; y el Departamento de Policía de Houston.

Están a cargo de la acusación en el caso el Abogado Litigante Joseph A. Cooley de la Unidad de Pandillas de la División Criminal y el Fiscal Federal Auxiliar David Nozick de la Fiscalía Federal para el Distrito Norte de Indiana.

Una acusación formal no es prueba de culpabilidad. Se supone que todos los demandados son inocentes, a no ser que se compruebe su culpabilidad más allá de la duda razonable en un tribunal de justicia.

WASHINGTON - The Justice Department today announced a settlement agreement with the city of Kerrville, Texas, and Playhouse 2000 to bring the Cailloux Theater into compliance with the Americans with Disabilities Act (ADA).

The settlement agreement resolves an investigation following a complaint filed by a person with a disability against the theater. The theater underwent significant alterations in 2003. The ADA requires that alterations to the theater should have been done so that that it is readily accessible to and usable by individuals with disabilities. Under the agreement, the city of Kerrville, which owns the theater, and Playhouse 2000, which manages and operates the theater, will take the following steps to improve access to the theater, including:

• Provide a choice of accessible wheelchair seating locations with a choice of ticket prices;
• Provide fixed companion seats for all wheelchair seating locations;
• Provide accessible routes throughout the theater;
• Provide ADA-compliant signage;
• Implement an ADA-compliant reservations policy; and
• Pay $2,500 in damages to the complainant.

 

"Everyone should be able to enjoy the cultural experience of attending live theater, including persons with disabilities. We are pleased that the city of Kerrville and Playhouse 2000 are taking steps to ensure that individuals with disabilities are guaranteed full access to the Cailloux theater," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.

 

The ADA protects individuals with disabilities from discrimination in all activities of state and local government entities, and from being denied an equal opportunity to participate in or benefit from the goods and services of public accommodations. For more information about the ADA call the Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at www.ada.gov.

BOSTON – SB Pharmco Puerto Rico Inc., a subsidiary of GlaxoSmithKline, PLC (GSK), has agreed to plead guilty to charges relating to the manufacture and distribution of certain adulterated drugs made at GSK’s now-closed Cidra, Puerto Rico, manufacturing facility, the Justice Department announced today. The resolution includes a criminal fine and forfeiture totaling $150 million and a civil settlement under the False Claims Act and related state claims for $600 million.

The drugs, manufactured at the plant between 2001and 2005, are Kytril, Bactroban, Paxil CR and Avandamet. Kytril is a sterile anti-nausea medication. Bactroban is a topical anti-infection ointment commonly used to treat skin infections. Paxil CR is the controlled release formulation of the popular anti-depressant drug, Paxil, and Avandamet is a combination Type II diabetes drug.

The Food, Drug and Cosmetic Act (FDCA) prohibits the introduction or delivery for introduction into interstate commerce of any drug that is adulterated. Under the FDCA, a drug is deemed adulterated if the methods used in, or the facilities or controls used for, its manufacturing, processing, packing or holding did not conform to or were not operated or administered in conformity with current good manufacturing practice to assure that such drug met the requirements as to safety and had the identity and strength, and met the quality and purity characteristics, which it purported or was represented to possess.

The criminal information filed today alleges that SB Pharmco’s manufacturing operations failed to ensure that Kytril and Bactroban finished products were free of contamination from microorganisms. The criminal information further alleges that SB Pharmco’s manufacturing process caused Paxil CR two-layer tablets to split. The splitting, which the company itself called a "critical defect," caused the potential distribution of tablets that did not have any therapeutic effect and tablets that did not contain any controlled release mechanism.

The criminal information also alleges that Avandamet tablets manufactured by SB Pharmco did not always have the Food and Drug Administration (FDA)-approved mix of active ingredients, and, as a result, potentially contained too much or too little of the ingredient with the therapeutic effect. Finally, the criminal information alleges that SB Pharmco’s Cidra facility suffered from longstanding problems of product mix-ups, which caused tablets of one drug type and strength to be commingled with tablets of another drug type and/or strength in the same bottle.

SB Pharmco has agreed to plead guilty to a criminal felony for releasing into interstate commerce adulterated Kytril, Bactroban, Paxil CR and Avandamet, in violation of the FDCA. Under the plea agreement, the company will pay a criminal fine of $150 million, which includes forfeiting assets of $10 million. The guilty plea and sentence is not final until accepted by the U.S. District Court in Boston.

Under the civil settlement, GSK has agreed to pay an additional $600 million to the federal government and the states to resolve claims that it caused false claims to be submitted to government health care programs for certain quantities of adulterated Kytril, Bactroban, Paxil CR and Avandamet. The United States contends that GSK sold certain batches, lots or portions of lots of drugs, the strength of which differed materially from, or the purity or quality of which fell materially below, the strength, purity or quality specified in the drugs’ FDA applications or related documents. GSK thereby knowingly caused false and/or fraudulent claims to be submitted to, or caused purchases by, Medicaid and the other federal health care programs.

The federal share of the civil settlement amount is $436,440,000, and GSK will pay up to $163,560,000 to states that participate in the agreement.

"Adulterated drugs undermine the integrity of the FDA’s approval process, can introduce substandard or ineffective drugs on to the market and, in the worst cases, can potentially put patients’ health at risk," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "We will continue to work with our law enforcement partners to hold pharmaceutical companies accountable for this type of conduct and protect taxpayers from fraud, waste, and abuse."

"The industry has an obligation to ensure that all rules, regulations and laws are complied with," said U.S. Attorney Carmen Ortiz. "To do less erodes public confidence and compromises patient safety. As this investigation demonstrates, we will not tolerate corporate attempts to profit at the expense of the ill and needy in our society - or those who cut corners that result in potentially dangerous consequences to consumers."

 

 

“In fiscal year 2010, the Department of Health and Human Services, Office of the Inspector General (HHS-OIG) realized nearly $2.3 billion in settlements and judgments against the pharmaceutical industry,” said Daniel R. Levinson, Inspector General of the Department of Health and Human Services. “If all pharmaceutical manufacturers complied with the law, there would be no need for such massive settlements and judgments. But until they stop stealing from taxpayers and threatening the health and lives of Americans – as is alleged here today – HHS-OIG will continue to vigorously pursue these corporations and their executives.”

 

"FDA’s manufacturing standards are designed to ensure the safety and quality of drugs distributed to American consumers," said Mark Dragonetti, Special Agent in Charge, FDA New York Field Office. "FDA expects pharmaceutical companies to abide by these manufacturing standards and correct deficiencies in an expedited manner.  FDA and its law enforcement partners will continue to aggressively pursue those companies that place the public health at risk by distributing products that do not comply with all FDA requirements." 

 

 

"This settlement demonstrates that the government will not stand for sub-standard drug product. As a result of this extensive investigation, millions of dollars will be returned to the Department of Veterans Affairs’ Pharmaceutical Supply Fund for the direct benefit of our Nation’s veterans," said Jeffrey G. Hughes, Special Agent in Charge, Office of Inspector General for the Department of Veterans Affairs.

"Federal employees deserve health care providers and suppliers, including drug manufacturers, that meet the highest standards of ethical and professional behavior," said Patrick E. McFarland, Inspector General of the U.S. Office of Personnel Management. "Today's settlement reminds the pharmaceutical industry that they must observe those standards and reflects the commitment of Federal law enforcement organizations to pursue improper and illegal conduct that places health care consumers at risk."

The civil settlement resolves one lawsuit filed in federal court in the District of Massachusetts under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. As part of today’s resolution, the whistleblower - Cheryl Eckard - will receive approximately $96 million from the federal share of the settlement amount.

The criminal case is being prosecuted by the U.S. Attorney’s Office for the District of Massachusetts and the Department of Justice's Office of Consumer Litigation. The civil settlement was negotiated by the U.S. Attorney's Office for the District of Massachusetts and the Civil Division's Commercial Litigation Branch. The HHS Office of Counsel to the Inspector General, the Center for Medicare and Medicaid Services, FDA's Office of Chief Counsel, and the National Association of Medicaid Control Units provided assistance.

The case was investigated by agents from the FBI, the Department of Veterans Affairs, Office of the Inspector General, HHS-IG, the FDA’s Office of Criminal Investigations, the Defense Criminal Investigative Service and the Office of the Inspector General for the Office of Personnel Management.

This settlement is part of the government's emphasis on combating health care fraud. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover approximately $4.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department's total recoveries in False Claims Act cases since January 2009 have topped $5.4 billion.

BOSTON – SB Pharmco Puerto Rico Inc., una subsidiaria de GlaxoSmithKline, PLC (GSK), ha aceptado declararse culpable de cargos asociados a la manufactura y distribución de ciertos medicamentos adulterados fabricados en las instalaciones de GSK en Cidra, Puerto Rico, actualmente cerradas, anunció hoy el Departamento de Justicia. La resolución incluye una multa criminal y confiscación por un total de $150 millones de dólares y un acuerdo conciliatorio civil bajo la Ley de Reclamos Falsos y reclamos estatales asociados por $600 millones de dólares.

Los medicamentos, fabricados en la planta entre 2001 y 2005, son Kytril, Bactroban, Paxil CR y Avandamet. Kytril es un medicamento estéril contra las náuseas. Bactroban es un ungüento tópico contra las infecciones, comúnmente utilizado para el tratamiento de infecciones de la piel. Paxil CR es la fórmula con liberación controlada del medicamento antidepresivo popular Paxil, y Avandamet es un medicamento combinado para la diabetes del Tipo II.

La Ley de Alimentos, Medicamentos y Cosméticos [Food, Drug and Cosmetic Act (FDCA)] prohíbe la introducción o entrega para introducción en comercio interestatal de cualquier medicamento adulterado. Según la FDCA, se considera adulterado un medicamento si los métodos utilizados en, o las instalaciones o controles utilizados para, su manufactura, procesamiento, empaque o mantenimiento no eran compatibles o no se utilizaron o administraron de acuerdo con las buenas prácticas de manufactura actuales, para asegurar que dicho medicamento cumpliera con los requisitos de seguridad y contara con la identidad y fuerza, y las características de calidad y pureza, que alegaba o declaraba poseer.

La información criminal presentada hoy alega que las operaciones de manufactura de SB Pharmco dejaron de asegurar que los productos finales Kytril y Bactroban estuvieran libres de contaminación proveniente de microorganismos. Asimismo, la información criminal alega que el proceso de manufactura de SB Pharmco causó que se partieran las tabletas de dos capas de Paxil CR. El hecho de que se partieran, lo que la empresa misma llamó un "defecto crítico", causó la distribución potencial de tabletas sin ningún efecto terapéutico y tabletas que no contenían ningún mecanismo de liberación controlada.

La información criminal también alega que las tabletas de Avandamet manufacturadas por SB Pharmco no siempre contuvieron la mezcla de ingredientes activos aprobada por la Administración de Medicamentos y Alimentos de los EE.UU. [Food and Drug Administration (FDA)] y, como resultado, contenían potencialmente demasiado o demasiado poco ingrediente con efecto terapéutico. Finalmente, la información criminal alega que las instalaciones de Cidra de SB Pharmco sufrieron problemas de larga duración de mezclas de productos en los que tabletas de un tipo de medicamento y concentración fueron mezcladas con tabletas de otro tipo de medicamento y/o concentración en el mismo frasco.

SB Pharmco ha acordado declararse culpable de un delito mayor por lanzar al comercio interestatal Kytril, Bactroban, Paxil CR y Avandamet adulterados, en violación de la FDCA. Según el acuerdo de declaración de culpabilidad, la empresa pagará una multa criminal de $150 millones de dólares, lo que incluye la confiscación de $10 millones de dólares en activos. La declaración de culpabilidad y la sentencia no son finales hasta que no sean aceptadas por el Tribunal Federal de Distrito en Boston.

Según el acuerdo conciliatorio civil, GSK ha acordado pagar $600 millones de dólares adicionales al gobierno federal y los estados en resolución de alegatos de que causó la presentación de reclamos falsos a programas de salud gubernamentales por ciertas cantidades de Kytril, Bactroban, Paxil CR y Avandamet adulterados. Los Estados Unidos sostienen que GSK vendió ciertos lotes o porciones de lotes de medicamentos, cuya concentración difería materialmente de, o cuya pureza o calidad resultó materialmente por debajo de la concentración, pureza o calidad especificadas en las solicitudes presentadas a la FDA para los medicamentos o documentos relacionados. Por lo tanto, a sabiendas, GSK causó la presentación de reclamos falsos y/o fraudulentos, o causó compras por Medicaid y los demás programas de salud federales.

La parte federal del acuerdo conciliatorio civil es de $436,440,000 dólares y GSK pagará hasta $163,560,000 dólares a los estados que participan en el acuerdo.

"Los medicamentos adulterados debilitan la integridad del proceso de aprobación de la FDA, pueden introducir medicamentos subestándar o ineficaces en el mercado y, en los peores casos, pueden potencialmente poner en riesgo la salud de los pacientes", dijo Tony West, Secretario de Justicia Auxiliar de la División Civil del Departamento de Justicia. "Seguiremos trabajando con nuestros asociados de las fuerzas del orden público para hacer pagar a las empresas farmacéuticas por este tipo de conducta y proteger a los contribuyentes contra el fraude, el desperdicio y el abuso".

"La industria tiene la obligación de asegurar que todas las reglas, normas y leyes se cumplan", dijo la Fiscal Federal Carmen Ortiz. "Hacer menos que eso hace perder la confianza pública y compromete la seguridad del paciente. Como demuestra esta investigación, no toleraremos intentos corporativos de obtener ganancias a expensas de los enfermos y necesitados en nuestra sociedad - ni toleraremos que se tomen atajos que resulten en consecuencias potencialmente peligrosas para los consumidores".

"En el año fiscal 2010, la Oficina del Inspector General del Departamento de Salud y Servicios Humanos (HHS-OIG) lograron casi $2.3 billones de dólares en acuerdos conciliatorios y fallos contra la industria farmacéutica", dijo Daniel R. Levinson, Inspector General del Departamento de Salud y Servicios Humanos. "Si todos los fabricantes farmacéuticos cumplieran la ley, no habría necesidad de tales acuerdos conciliatorios y fallos masivos. Sin embargo, hasta que dejen de robarles a los contribuyentes y poner en peligro la salud y las vidas de los ciudadanos estadounidenses - como se alega aquí hoy - la HHS-OIG seguirá enjuiciando enérgicamente a estas empresas y sus ejecutivos".

"Los estándares de manufactura de la FDA fueron diseñados para garantizar la seguridad y la calidad de los medicamentos distribuidos a los consumidores estadounidenses", dijo Mark Dragonetti, Agente Especial a Cargo, Oficina Local de Nueva York de la FDA. "La FDA espera que las empresas farmacéuticas cumplan con estas normas de manufactura y corrijan las deficiencias con prontitud. La FDA y sus asociados de las fuerzas del orden público seguirán enjuiciando enérgicamente a las compañías que pongan en riesgo a la salud pública al distribuir productos que no cumplan con todas las exigencias de la FDA".

"Este acuerdo conciliatorio demuestra que el gobierno no tolerará los productos farmacéuticos subestándar. Como resultado de esta amplia investigación, se devolverán millones de dólares al Fondo de Provisión Farmacéutica del Departamento de Asuntos de Veteranos en beneficio directo de los veteranos de nuestro país", dijo Jeffrey G. Hughes, Agente Especial a Cargo, Oficina del Inspector General del Departamento de Asuntos de Veteranos.

"Los empleados federales merecen proveedores de servicios médicos, entre ellos fabricantes de medicamentos, que cumplan con los estándares más altos de conducta ética y profesional", dijo Patrick E. McFarland, Inspector General de la Oficina de Administración de Personal de los EE.UU. "El acuerdo conciliatorio de hoy hace recordar a la industria farmacéutica que debe cumplir con esos estándares y refleja el compromiso de las organizaciones federales de las fuerzas del orden público de enjuiciar conducta incorrecta e ilegal que ponga en riesgo la servicios médicos de los consumidores".

El acuerdo conciliatorio civil resuelve una demanda entablada en el tribunal federal en el Distrito de Massachusetts bajo las disposiciones qui tam, o de denunciante, de la Ley de Reclamos Falsos, que permiten que los ciudadanos privados entablen acciones civiles de parte de los Estados Unidos y participen de cualquier recuperación lograda. Como parte de la resolución de hoy, la denunciante, Cheryl Eckard, recibirá aproximadamente $96 millones de dólares de la parte federal del acuerdo conciliatorio.

Están a cargo de la acusación en el caso la Fiscalía Federal para el Distrito de Massachusetts y la Oficina de Litigio del Consumidor del Departamento de Justicia. El acuerdo conciliatorio civil fue negociado por la Fiscalía Federal para el Distrito de Massachusetts y la Sección de Litigio Comercial de la División  Civil. La Oficina de Asesoría al Inspector General del HHS, el Centro para Servicios de Medicare y Medicaid, la Oficina del Asesor Principal de la FDA, y la Asociación Nacional de Unidad de Control de Medicaid brindaron asistencia.

El caso fue investigado por agentes del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)], el Departamento de Asuntos de Veteranos, la Oficina del Inspector General, HHS-IG, la Oficina de Investigaciones Criminales de la FDA, el Servicio de Investigaciones Criminales de Defensa y la Oficina del Inspector General para la Oficina de Administración de Personal.

Este acuerdo conciliatorio es parte del énfasis puesto por el gobierno en la lucha contra el fraude de servicios médicos. Una de las herramientas más poderosas en dicha iniciativa es la Ley de Reclamos Falsos, utilizada por el Departamento de Justicia para recuperar aproximadamente $4.2 billones de dólares desde enero de 2009 en casos asociados al fraude contra los programas de salud federales. Las recuperaciones totales del Departamento de Justicia en casos asociados a la Ley de Reclamos Falsos desde enero de 2009 han superado los $5.4 billones de dólares.

WASHINGTON – Addressing the International Association of Chiefs of Police (IACP) Conference in Orlando, Fla., Attorney General Eric Holder today unveiled the Department of Justice’s new Preventing Violence Against Law Enforcement and Ensuring Officer Resilience and Survivability (VALOR) initiative. The VALOR initiative was created to reduce and prevent law enforcement officer line of duty injuries and deaths by training officers in techniques for approaching violence encounters.

 

Under the VALOR initiative, the department allocated $800,000 for the initial development of a nationwide training and technical assistance program. A key aspect of the VALOR training will include how to anticipate and survive a violent encounter, with training based on the “The Deadly Mix” framework (officer, offender, and circumstances that brought them together). In addition, officers will learn techniques for identifying concealed weapons and armed gunmen, and be trained for high-risk tactical situations that may involve active shooters or hostages. Officers will also learn techniques to confront specific threat groups, including domestic and international terrorists and other violent criminals and extremists.

 

“Since last October, 163 officers have been killed in the line of duty nationwide , with more than a third of them killed by gunfire,” Attorney General Holder said. “These losses of mothers and fathers, spouses and siblings, children and colleagues represent an alarming increase in police officer fatalities. The Justice Department is committed to turning back this rising tide; to meeting increased violence with renewed vigilance; and to doing everything within our power – and using every tool at our disposal – to keep law enforcement officers safe.”

 

In addition to the VALOR initiative grant, the Department’s Bureau of Justice Assistance (BJA) awarded $467,312 to IACP to launch the Center for the Prevention of Violence Against the Police, which is designed to serve as a clearinghouse for information and analysis about injury and violence against law enforcement officers in order to reduce the number of felonious assaults on officers, reduce costs to governments, and increase community safety. All together, the Department of Justice has committed more than $40 million for officer safety programs in Fiscal Year 2010. This includes more than $30 million to reimburse law enforcement agencies for the purchase of body armor, respond to line of duty deaths, enhance deconfliction efforts and boost technology development.

 

Attorney General Holder also announced the expansion of the Smart Policing program to six new sites. The Smart Policing program, which started in 2009, is focused on evidence-based practices that target a specific crime problem that can be replicated by law enforcement agencies across the country. Each agency receiving a grant enlists the assistance of a research partner to analyze data, test interventions, and measure the results. The six new Fiscal Year 2010 grants bring to 16 the number of law enforcement agencies participating in this program. The six grantees in Baltimore; Cincinnati; Indio, Calif.; Joliet, Ill.; Lowell, Mass. and San Diego will focus on gun crime, street gangs, drug markets and robberies, among other crime issues.

 

WASHINGTON – An Elmore County, Ala., tax return preparer was indicted in the Middle District of Alabama for tax fraud and identity theft, the Justice Department and Internal Revenue Service (IRS) announced today. Sharon D. Thurman, who owned and operated "Sharon’s Tax Services," was charged with 14 counts of making false claims for tax refunds, two counts of aggravated identity theft and two counts of theft of government money.

According to the indictment, Thurman knowingly used the name and Social Security number of individuals to steal tax refunds from the IRS. The indictment further alleges that Thurman sought at least $53,548 in fraudulent tax refunds from the IRS during the 2007 tax year.

An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Thurman faces a maximum of 94 years in prison and a maximum fine of $4 million.

The case is being investigated by IRS Criminal Investigation and is being prosecuted by Tax Division Trial Attorney Justin K. Gelfand and Assistant U.S. Attorney Monica Stump.

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

WASHINGTON – An additional alleged member of the Almighty Latin Kings and Queen Nation (Latin Kings) has been indicted for his alleged role in a racketeering conspiracy in Hammond, Ind., and elsewhere, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana.

The superseding indictment, returned by the federal grand jury on Oct. 22, 2010, and unsealed yesterday in Hammond charges Martin Anaya, aka "Lefty," 40, of Chicago, with conspiracy to engage in a racketeering activity. Previously charged in the conspiracy are: Alexander Vargas, aka "Pacman," 33, of Highland, Ind.; Sisto Bernal, aka "Cisco," aka "Shug," 44, of Chicago; Jason Ortiz, aka "Creeper," 27, of Chicago; and Brandon Clay, aka "Cheddar," aka "Swiss," aka "Slick," 23, of Chicago.

Anaya is charged also in the superseding indictment with one count of murder and one count of using and carrying a firearm to commit murder during and in relation to a crime of violence. In addition, the superseding indictment alleges new charges against Vargas, Ortiz and Clay for murder in aid of racketeering, and murder resulting from the use of a firearm. Ortiz and Clay were also charged previously in the original indictment with murder in aid of racketeering, murder resulting from the use of a firearm, possessing a firearm after having been convicted of a felony and possessing stolen firearms.

According to the superseding indictment, the southeast region of the Latin Kings is responsible for at least 15 murders. The superseding indictment specifically alleges that Vargas, Ortiz, Clay and other Latin King members participated in the murder of rival gang members James Walsh and Gonzalo Diaz outside of a bar in Griffith, Ind., in the early morning of Feb. 25, 2007. The superseding indictment also alleges that Ortiz, Clay and Anaya participated in the murder of Christiana Campos on April 22, 2009. In addition, the superseding indictment alleges that Clay participated with other Latin King members in the murder of Edward Delatorre on Nov. 26, 2006. In addition to the violent crimes, the superseding indictment alleges that the Latin Kings also distributed more than 150 kilograms of cocaine and 1,000 kilograms of marijuana.

According to the superseding indictment, the Latin Kings is nationwide gang that originated in Chicago and has branches throughout the United States. The Latin Kings is a well organized street gang that has specific leadership and is comprised of regions that include multiple chapters. The Latin Kings enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, assault, and threats against those who violate the rules or pose a threat to the Latin Kings. Members are required to follow the orders of higher-ranking members, including taking on assignments often referred to as "missions."

The racketeering conspiracy charge carries a maximum penalty of life in prison. The murder-related charges carry maximum penalties of life in prison or the death penalty. The felon in possession of a firearm and possession of stolen firearms charges each carry a maximum prison sentence of 10 years.

Anaya made his initial appearance yesterday before U.S. Magistrate Judge Andrew Rodovich. The remaining defendants will be arraigned before Judge Rodovich on Nov. 2, 2010, at 1 p.m.

This case is being investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; Immigration, Customs and Enforcement; the National Gang Targeting, Enforcement & Coordination Center; the National Gang Intelligence Center; the Chicago Police Department, the Griffith Police Department; the Highland, Ind., Police Department; the Hammond Police Department; and the Houston Police Department.

The case is being prosecuted by Trial Attorney Joseph A. Cooley of the Criminal Division’s Gang Unit and Assistant U.S. Attorney David Nozick of the U.S. Attorney’s Office for the Northern District of Indiana.

The indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

WASHINGTON – The Justice Department today announced that Polk County, Fla., has agreed to pay $400,000 in monetary damages and civil penalties to settle a lawsuit alleging that it violated the Fair Housing Act when it denied New Life Outreach Ministries the right to operate a faith-based transitional residency program in Lakeland, Fla., for homeless men with disabilities, including those in recovery from drug and alcohol abuse. This lawsuit is part of the Justice Department’s continuing effort to enforce civil rights laws that require states and municipalities to end discrimination against, and unnecessary segregation of, persons with disabilities.

Under the consent decree, which must still be approved by the U.S. District Court for the Middle District of Florida, the county agreed to pay $280,000 to New Life, up to $80,000 to individuals who were forced to relocate from New Life’s property on Pipkin Road as a result of the county’s conduct and $40,000 to the government. The consent decree also prohibits the county from further discrimination and requires county employees who have responsibilities related to zoning and land-use to receive fair-housing training.

"Equal access to housing is a basic necessity and a civil right, and the Fair Housing Act guarantees that all individuals can access that right free from discrimination," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "This settlement will ensure that the equal housing opportunities required by law are available to all citizens of Polk County and send a message to other states and municipalities that we have no tolerance for discrimination against persons with any type of disability."

The complaint in this case, which was filed by the Justice Department on Sept. 30, 2010, alleges that the county twice approved, in writing, New Life’s proposed use and affirmed that the use was legal under the county’s land development code. The complaint also alleges that New Life purchased the property on Pipkin Road in reliance on this written approval and that the county reversed itself only after community opposition arose because of the disabilities of New Life’s residents.

The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status (having children under 18 years old) and disability.

More information about the Civil Rights Division and the laws it enforces can be found at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line 1-800-896-7743, email the Justice Department at [email protected] or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.

WASHINGTON - The United States has sued Iliana Sorensen of Hialeah, Fla., and Gerald A. Poynter II of Kansas City, Mo., seeking to bar them from preparing federal tax returns for others, the Justice Department announced today. Sorensen and Poynter are both alleged to prepare tax returns claiming fictitious withholding on their customers’ returns in an attempt to claim large tax refunds.

The government’s civil injunction complaints allege that Sorensen and Poynter have prepared federal income tax returns for customers claiming more than $70 million in fraudulent tax refunds that are based on fake withholding reported on Forms 1099-OID. While the Internal Revenue Service (IRS) detects and stops most fraudulent refund claims, the complaints allege that Poynter’s and Sorensen’s fraudulent tax return preparation has resulted in more than $7 million in erroneous refunds to their customers.

According to the complaints, the scheme Poynter and Sorensen employ is part of a trend among tax defiers to file frivolous tax returns and forms in an attempt to escape their federal tax obligations and steal from the U.S. Treasury.

Customers who participate in tax fraud schemes of the type alleged in the complaints may be subject to sizeable penalties for filing returns with excessive refund claims —including a penalty equal to 20 percent of the amount improperly claimed. The penalty applies even if, as usually happens, the IRS detects the false claim and blocks a tax refund. Thus a taxpayer improperly claiming a $2 million refund could be liable for a $400,000 penalty as well as other penalties and possible criminal prosecution.

Courts have barred preparers who used similar schemes in California , South Carolina , Georgia, and Tennessee from preparing tax returns for others.

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

WASHINGTON – The Justice Department today sought the federal court’s approval of a consent decree with Norwegian Cruise Line (NCL) to resolve a lawsuit under the Americans with Disabilities Act (ADA) on behalf of individuals who are deaf or hard of hearing, and individuals who use wheelchairs, who took NCL cruises of the Hawaiian Islands.

Under the proposed consent decree, NCL will ensure that individuals who are deaf or hard of hearing get the auxiliary aids and services they need, such as a sign language interpreter or a written transcript of the emergency drill, to fully participate in the activities on the ship and in the shore excursions. NCL will also ensure that individuals who use wheelchairs get accessible bus transportation between the airport, cruise ship and hotels, and on shore excursions. In addition, NCL will pay $100,000 in damages to nine individuals with disabilities and will also pay $40,000 in civil penalties to the United States.

"People with disabilities who need sign language interpreters or accessible ground transportation should be able to go on vacation and enjoy the activities of a cruise like everyone else," said Thomas E. Perez, Assistant Attorney General of the Civil Rights Division. "It is essential that NCL and the cruise industry comply with the ADA’s requirements for auxiliary aids and services and accessible transportation."

"The ADA applies to cruise ships, just as it does to hotels and other entities that offer services to the public," said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida.  "Discrimination against people with disabilities, on land or at sea, will not be tolerated."

After an extensive investigation, the Justice Department determined that five deaf individuals on NCL cruises around Hawaii did not receive interpreters and other auxiliary aids, or a closed caption TV, and thus were unable to enjoy the activities on board the ship or the shore excursions because they could not understand what was going on and communicate effectively. The Justice Department also determined that four individuals who use wheelchairs did not get accessible buses between the airport, ship and hotel, and on shore excursions; had to wait hours for an accessible bus at times; were unable to go on shore excursions because of the lack of an accessible bus; were charged extra for accessible transportation; and/or were not allowed to get on and off the bus during a shore excursion even though the bus was accessible.

The relief in the consent decree specifically includes:

• An access desk to handle requests for reasonable accommodations from guests with disabilities pre-cruise;
• Access officers on board the ship to handle requests for reasonable accommodations from guests with disabilities during the cruise;
• NCL shall respond in writing to a request for a reasonable accommodation within one week, when the request is made at least three weeks prior to sailing;
• ADA training for NCL staff;
• Pagers for guests who are deaf or hard of hearing to use while on the cruise, through which safety and other important announcements will be transmitted;
• TTY communication devices for guests;
• Visual tactile alert systems in staterooms for guests who are deaf or hard of hearing (i.e., visual or tactile alert to door knock, telephone ringing, alarm ringing and smoke detection);
• Closed caption televisions in staterooms and common areas;
• Written transcripts of the emergency drill; and
• Accessible over-the-road buses, shuttle buses, and vans for transportation between the airport, ship, and hotels and on shore excursions, with no extra wait times for accessible transportation.

Title III of the ADA prohibits discrimination against persons with disabilities by public accommodations and private entities offering specified public transportation. It requires that public accommodations offer their programs and services in a manner that does not discriminate against people with disabilities. The Justice Department may bring lawsuits to enforce Title III seeking as relief injunctive remedies, monetary damages for complainants, and civil penalties.

People interested in finding out more about the ADA or this Consent Decree can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at www.ada.gov.

WASHINGTON - A Virginia man was sentenced today to 18 months in prison in connection with a scheme to defraud the U.S. Department of Defense of more than $450,000, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride of the Eastern District of Virginia.

Jonathan Feeney Sr., 28, of Woodbridge, Va., was also ordered by U.S. District Court Judge Leonie M. Brinkema to pay restitution of $464,819 to the Department of Defense and $11,604 to BAE Systems Training Services Inc. (BAE). In addition, Judge Brinkema ordered Feeney to serve three years of supervised release following his prison term. Feeney pleaded guilty on July 28, 2010, to a one-count criminal information charging him with using the U.S. mails to execute a scheme involving fraudulent invoices submitted to the Department of Defense through BAE, Feeney’s former employer.

According to court documents, BAE maintained a procurement contract with the Department of Defense during 2005 and 2006. Under the terms of the contract, BAE would purchase surveillance equipment and subsequently bill the U.S. government for those purchases. Feeney worked as a logistics engineer at BAE and was responsible for purchasing the items needed under the contract.

In his plea, Feeney admitted that he started making secret purchases in BAE’s name beginning in August 2005. He admitted that he used his position to authorize the purchase of camera lenses and video equipment, intending all the while to resell the equipment for personal gain despite billing BAE for the purchases. Feeney’s actions would cause BAE, in turn, to use the mail to bill those purchases to the United States. Between Aug. 6, 2005, and June 30, 2006, Feeney admitted that he made 15 illicit purchases totaling $476,424 in fraudulent charges, of which $464,819 was billed to the U.S. government. Feeney also admitted that he subsequently sold many of the purchases on an Internet auction site for profit.

The case was prosecuted by Trial Attorneys Liam Brennan and Ryan S. Faulconer of the Criminal Division’s Fraud Section. The investigation was conducted by the

Defense Criminal Investigative Service and members of the National Procurement Fraud Task Force (NPFTF).

WASHINGTON – A Newport News, Va., federal grand jury has indicted a married couple for conspiring to defraud the United States, the Justice Department and the Internal Revenue Service (IRS) announced today. The grand jury indicted Kathryn Charles Miles and John Scott Miles of Mathews County, Va. In addition, Kathryn Miles is charged with filing false tax returns, and John Miles is charged with failing to file tax returns. The court has not yet set a trial date.

According to the indictment, Kathryn and John Miles jointly operated a construction business called "Scotts Construction" and "KCM Construction & Design," out of their residence. Kathryn Miles, a nurse, filed six false tax returns for tax years 2000 through 2005 and attached false documents to each tax return. Additionally, according to the indictment, John Miles did not timely file tax returns with the IRS for tax years 2004 and 2005. In 2001, Kathryn Miles and John Miles paid $200 to American Rights Litigators, a business that sold and promoted tax defiance schemes. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Kathryn Miles faces a maximum of 23 years in prison and a maximum fine of $1.75 million. If convicted, John Miles faces a maximum of seven years in prison and a maximum fine of $350,000.

The case is being investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Brian Samuels and Tax Division Trial Attorney Justin K. Gelfand.

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

WASHINGTON - The Justice Department announced that Daniel Cowart was sentenced today to 14 years in prison and three years of supervised release for his role in a conspiracy to murder dozens of African-Americans, including then-Senator and presidential candidate Barack Obama, because of their race.

On March 29, 2010, Cowart pleaded guilty to conspiracy, threatening to kill and inflict bodily harm upon a major candidate for the office of President of the United States, interstate transportation of a short-barreled shotgun, interstate transportation of a firearm for the purpose of committing a felony, unlicensed transportation of an unauthorized short-barreled shotgun, possession of a short-barreled shotgun, intentional damage to religious real property and discharge of a firearm during and in relation to a crime of violence.

Cowart, 22, of Bells, Tenn., admitted to conspiring with Paul Schlesselman of West Helena, Ark., to engage in a killing spree specifically targeting African-Americans. He further acknowledged that he intended to culminate these attacks by assassinating President Obama, a U.S. Senator and presidential candidate at the time of the conspiracy.

Cowart admitted that he and Schlesselman also conspired to burglarize a federally-licensed firearms dealer to obtain additional weapons for their scheme. He also admitted to transporting a sawed-off shotgun from Arkansas to Tennessee for the purpose of committing felonies. Cowart additionally admitted to shooting the window of the Allen Baptist Church in Brownsville, Tenn.

Under the plea agreement, Cowart agreed that an appropriate sentence would be between twelve and eighteen years. The charges to which he pleaded guilty carried a minimum sentence of 10 years and a maximum sentence of 75 years in prison.

"Threats of violence fueled by bigotry and hate have no place in the United States of America, and they will not be tolerated," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "Although the heroic intervention of law enforcement spared us from a tragedy, this conspiracy and its associated crimes demanded a severe sentence. The sentence imposed constitutes serious punishment for a serious crime."

"Thankfully, the defendants were not able to execute their violent scheme. Nevertheless, this is a grave matter and Judge Breen’s sentence reflects that crimes of this magnitude demand stiff penalties," said Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee. "I would like to recognize the extraordinary diligence of the Crockett County Sheriff’s Department, the Bureau of Alcohol, Tobacco and Firearms, the U.S Secret Service, and the FBI."

Cowart’s co-defendant, Paul Schlesselman, pleaded guilty on Jan. 14, 2010, to one count of conspiracy, one count of threatening to kill and inflict bodily harm upon a presidential candidate, and one count of possessing a firearm in furtherance of a crime of violence. Schlesselman was sentenced to 10 years in prison on April 15, 2010.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Secret Service; the FBI; and the Crockett County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorneys Larry Laurenzi and James Powell and Civil Rights Division Trial Attorney Jonathan Skrmetti.

WASHINGTON - Craig Shaber, a practicing attorney from San Diego County, Calif., pleaded guilty Thursday in federal court before U.S. Magistrate Judge Anthony J. Battaglia to one count of tax evasion for the 2000 tax year, the Justice Department and Internal Revenue Service (IRS) announced today.

According to the indictment and other documents filed in San Diego federal court, between the years 1999 and 2002, Shaber and Steven Wright, an accountant who pleaded guilty to tax evasion in August 2009, fraudulently acquired control of numerous public shell companies. They acquired control of the companies by, among other things, installing nominee officers and directors and submitting false registration statements and reports to the U.S. Securities and Exchange Commission (SEC) and the National Association of Securities Dealers, now known as the Financial Industry Regulatory Authority.

Shaber and Wright earned millions of dollars from the sale of these public shell companies and deposited the proceeds into a bank account in the name of Bonaventure Capital Ltd., and one of Shaber’s client trust bank accounts. In 2002, Shaber and Wright received $260,000 in cash from the sale of one of these companies. In 2003, the SEC filed a complaint related to Shaber’s and Wright’s conduct selling these public shell companies.

According to the indictment and other documents filed in the case, Shaber and Wright then evaded taxes on the millions of dollars earned from the sale of the public shell companies. They withdrew these proceeds for their own personal benefit and concealed their receipt of the income. Shaber and Wright disbursed these funds to various bank accounts in the names of nominee entities that they controlled and used accounts in the names of nominee entities to pay for personal expenses.

Shaber used the proceeds from the shell company scheme to purchase numerous luxury items, including his personal residence in Coronado, Calif., a McDonnell Douglas helicopter, a World-War-II-era Tigercat airplane, a Plymouth Prowler, a Porsche 996 Turbo and art work. Wright also purchased significant assets, including property in Poway, Calif., a condominium in Mammoth Lakes, Calif., a BMW X5 and art work.

Shaber’s sentencing is set for Jan. 21, 2011, and Wright’s sentencing is scheduled for Feb. 28, 2011.

These cases are being investigated by IRS Criminal Investigation and are being prosecuted by Tax Division Trial Attorneys Christopher J. Maietta and Timothy J. Stockwell.

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

WASHINGTON – Ademola Ismaila Adegoke, 43, of Accra, Ghana, was sentenced today to 102months in prison for using stolen credit card numbers to steal more than $400,000 from U.S. citizens, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Neil H. MacBride for the Eastern District of Virginia; Todd Brown, Special Agent in Charge of Diplomatic Security’s Washington Field Office; Jeffrey Irvine, Special Agent in Charge of the Secret Service’s Washington Field Office; and Stephen L. Holl, Chief of the Metropolitan Washington Airports Authority Police Department.

U.S. District Court Judge Liam O’Grady also ordered Adegoke to serve twoyears of supervised release following his prison term. The defendant has agreed to pay restitution in the amount of $696,026. Adegokepleaded guilty to wire fraud and aggravated identity theft on July 30, 2010.

According to court documents, Adegoke is a Nigerian national who was living in Accra. Adegoke used local Internet cafes in Accra to access e-mail accounts and Voice over IP (VOIP) services, which made it appear that he was calling from the United States even though he was physically in Ghana. He used e-mail and VOIP to purchase stolen credit card information online and then used those numbers to purchase airline tickets from travel agencies in the United States and Canada, as well as directly from airlines.

Adegoke sent e-mail or faxed copies of fraudulent passports and drivers licenses as well as images of credit cards with the stolen credit card number transposed over a blank card to the travel agency or airline. According to court documents, if he was able to convince the travel agency or airline to issue a ticket, he would call back, speak to the same agent, and purchase additional tickets for customers who would pay him a fraction of the cost of the full fare. In all, Adegoke purchased more than 5,000 stolen credit card numbers and was responsible for more than $400,000 in losses as a result of this scheme.

On May 5, 2010, the Ghanaian Police, in cooperation with U.S. law enforcement, arrested Adegoke in Accra. Adegoke was extradited from Ghana to the United States, where he arrived on June 28, 2010.

This case was investigated by the Department of State Diplomatic Security Service, the U.S. Secret Service and the Metropolitan Washington Airport Authority. Michael Stawasz, Senior Counsel in the Criminal Division’s Computer Crime & Intellectual Property Section and Assistant U.S. Attorney John Eisinger prosecuted the case on behalf of the United States. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.

WASHINGTON- Nelson Santos, alias “Nelly” y “King Nelly,” 27, de Silver Spring, Md., fue sentenciado hoy por el Juez Federal de Distrito Alexander Williams Jr. a 190 meses en prisión por conspiración para participar en una empresa de delincuencia organizada y ser un delincuente mayor en posesión de un arma de fuego, en conexión con sus actividades pandilleras como miembro de la pandilla "Nación Todopoderosa de Reyes y Reinas Latinos" (Latin Kings). También se le ordenó a Santos cumplir cinco años de libertad bajo supervisión después de haber cumplido con su sentencia en prisión.

La sentencia fue anunciada por el Secretario de Justicia Auxiliar Lanny A. Breuer de la División Criminal; el Fiscal Federal para el Distrito de Maryland Rod J. Rosenstein; la Agente Especial a Cargo Theresa R. Stoop de la División Local en Baltimore del Buró de Control de Bebidas Alcohólicas, 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; el Fiscal Estatal del Condado de Montgomery John McCarthy; el Jefe Roberto L. Hylton del Departamento de Policía del Condado de Prince George; y el Fiscal Estatal del Condado de Prince George Glenn F. Ivey.

Según el acuerdo de declaración de culpabilidad de Santos, Latin Kings es una pandilla callejera violenta con miles de miembros en todos los Estados Unidos y el extranjero. 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" escrito 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.

Según el acuerdo de culpabilidad, Santos se hizo miembro del Royal Lion Tribe en Maryland en 2007. Santos admitió que participó en misiones sancionadas por los Latin Kings, incluido el robo armado de una prostituta en un motel en Laurel, Md., el 14 de diciembre de 2007. De acuerdo con la declaración de los hechos, Santos y otros miembros y asociados de los Latin Kings viajaron en dos vehículos separados al motel, donde entraron a la fuerza a la habitación que sabían estar ocupada por una prostituta. Santos y los demás miembros y asociados de los Latin Kings estaban armados con una pistola y una cuchilla. Obligaron a la prostituta a desnudarse y acostarse en la cama, mientras los Latin Kings saquearon su habitación y robaron dinero en efectivo, un X-Box, juegos de video, un teléfono celular, una laptop y otros artículos. Le dieron un culatazo con la pistola en la cabeza y mantuvieron cautivo en el baño al hombre que se encontraba en la habitación con la prostituta.

Según el acuerdo de declaración de culpabilidad, el 28 de abril de 2009, en Wheaton, Md., Santos, un delincuente anteriormente condenado que estaba prohibido de poseer armas de fuego y municiones, a sabiendas, poseía una pistola Leinad 9mm Mac-11 con un número de serie borrado y cargada con 27 municiones de 9mm.

Los codemandados Miguel Cruz, alias “Skibee” y “King Skibee,” 45, de Bronx, N.Y., uno de los fundadores del tribu de Maryland de los Latin Kings, y Andrés Echevarria, alias "B-Boy" y "King B-Boy", 23, de Brooklyn, N.Y., se declararon culpables de conspiración para cometer delincuencia organizada en conexión con sus actividades pandilleras y fueron sentenciados a 87 meses en prisión y 19 años en prisión, respectivamente. Francisco Ortiz, alias, “Francis Gabriel Ortiz,” “Pone,” y “King Pone,” 26, de Rockville, Md., también se declaró culpable de conspiración para cometer delincuencia organizada y su sentencia está programada para el 1º de diciembre de 2010, a las 9:30a.m. Todos permanecen bajo custodia federal, como Santos.

Además del ATF - División Local de Baltimore, el Departamento de Policía del Condado de Montgomery; la Fiscalía Estatal del Condado de Montgomery; el Departamento de Policía del Condado de Prince George; la Fiscalía Estatal del Condado de Prince George; y el Departamento de Policía de la Ciudad de Nueva York; proveyeron asistencia el Departamento de Policía de Gaithersburg, Md.; la Oficina del Alguacil del Condado de Montgomery; la Policía de Parques Nacionales de Maryland de la División del Condado de Prince George; la Policía Estatal de Maryland; el Departamento de Policía de Nueva York; el Servicio Secreto de los EE.UU.; la División de Investigaciones Criminales de Servicio de Impuestos Internos; y el Servicio de Inmigración y Control de Aduanas de los EE.UU.

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

WASHINGTON – Glenn Duffie Shriver, 28, of Detroit, Mich., pleaded guilty today before U.S. District Court Judge Liam O’Grady to conspiring to provide national defense information to intelligence officers of the People’s Republic of China (PRC).

The guilty plea was announced by David Kris, Assistant Attorney General for the National Security Division; 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.

Shriver pleaded guilty to a one-count criminal information charging him with conspiracy to communicate national defense information to a person not entitled to receive it. In a plea agreement, the defense and government jointly recommended a prison sentence of 48 months. Sentencing is scheduled for Jan. 21, 2011.

"This defendant attempted to gain access to classified U.S. national defense information by securing a position within the U.S. government under false pretenses, with the ultimate goal of providing that information to intelligence officers of the People’s Republic of China," said Assistant Attorney General Kris.  "Through the diligent work of the agents, analysts, and prosecutors assigned to this matter, the defendant’s scheme was detected and neutralized."

"Mr. Shriver betrayed his country and took repeated steps toward spying for another government," said U.S. Attorney MacBride. "We remain vigilant against threats to our national security and will do everything in our power to find and punish those who seek to betray our country."

"Mr. Shriver threw away his education, his career and his future when he chose to position himself to spy for the PRC," said John G. Perren, Acting Assistant Director in Charge of the FBI Washington Field Office.  "He failed to appreciate that the PRC simply created a ‘friendship’ with him to use him. It’s a valuable lesson to others who might be tempted to do the same."

According to a statement of facts filed with his plea agreement, Shriver is proficient in Mandarin Chinese and lived in the PRC both as an undergraduate student and after graduation. While living in Shanghai in October 2004, Shriver developed a relationship with three individuals whom he came to learn were PRC intelligence officers. At the request of these foreign agents, Shriver agreed to return to the United States and apply for positions in U.S. intelligence agencies or law enforcement organizations.

Shriver admitted in court that he knew that his ultimate objective was to obtain a position with a federal department or agency that would afford him access to classified national defense information, which he would then transmit to the PRC officers in return for cash payments.

From 2005 to 2010, Shriver attempted to gain employment as a U.S. Foreign Service Officer with the Department of State and as a clandestine service officer with the Central Intelligence Agency. Shriver admitted that, during this time, he maintained frequent contact with the PRC intelligence officers and received more than $70,000 in three separate cash payments for what the officers called his "friendship."

In December 2009, Shriver received notice that he was to report to Washington, D.C., in May 2010 for final employment processing activities with the CIA. Shriver admitted that he communicated with a PRC intelligence officer that he was "making some progress" in obtaining a position with the CIA and that he would not be free to travel to PRC for another meeting because it could raise suspicion with federal agents conducting his background investigation.

Shriver admitted that he made false statements on the CIA questionnaire required for employment stating that he had not had any contact with a foreign government or its representative during the last seven years, when in fact he had met in person with one or more of the officers approximately 20 times since 2004. He also deliberately omitted his travel to PRC in 2007 when he received a $40,000 cash payment from the PRC for applying to the CIA. In addition, Shriver made false statements during a series of final screening interviews at the CIA, and he admitted he made each of the false statements to conceal his illicit relationship with the PRC intelligence officers.

This case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Stephen M. Campbell of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Brandon L. Van Grack of the Counterespionage Section in the National Security Division are prosecuting the case.

WASHINGTON- Nelson Santos, aka “Nelly” and “King Nelly,” 27, of Silver Spring, Md., was sentenced today by U.S. District Judge Alexander Williams Jr. to 190 months in prison for conspiracy to participate in a racketeering enterprise and being a felon in possession of a firearm, in connection with his gang activities as a member of the Almighty Latin King and Queen Nation (Latin Kings). Santos was also ordered to serve five years of supervised release following his prison term.

 

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

 

According to Santos’ plea agreement, the Latin Kings is a violent street gang with thousands of members across the country and overseas.  The Latin Kings have a detailed 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, but not limited to, the Royal Lion Tribe, MOG, Sun Tribe and UTL.

 

According to the plea agreement, Santos became a member of the Royal Lion Tribe in Maryland in 2007.  Santos admitted that he participated in Latin King-sanctioned missions, including the armed robbery of a prostitute at a motel in Laurel, Md., on Dec. 14, 2007.  According to the statement of facts, Santos and other Latin King members and associates drove in two separate vehicles to the motel, where they forced their way into a motel room, which they knew to be occupied by a prostitute.  Santos and the other Latin King members and associates were armed with a gun and a knife.  The prostitute was forced to strip naked on the bed, while the Latin Kings ransacked her room and stole cash, an X-Box, video games, a cell phone, a laptop and other items.  The man who was in the room with the prostitute was held captive in the bathroom and pistol-whipped on the head.

 

Also according to the plea agreement, on April 28, 2009, in Wheaton, Md., Santos, a previously convicted felon who was prohibited from possessing firearms and ammunition, knowingly possessed a Leinad 9mm Mac-11 machine pistol with an obliterated serial number, which was loaded with 27 rounds of 9mm ammunition.  

Co-defendants Miguel Cruz, aka “Skibee” and “King Skibee,” 45, of the Bronx, N.Y., one of the founders of the Maryland tribe of the Latin Kings, and Andres Echevarria, aka “B-Boy” and “King B-Boy,” 23, of Brooklyn, N.Y., pleaded guilty to the racketeering conspiracy in connection with their gang activities and were sentenced to 87 months in prison and 19 years in prison, respectively.  Francisco Ortiz, aka “Francis Gabriel Ortiz,” “Pone,” and “King Pone,” 26, of Rockville, Md., also pleaded guilty to the racketeering conspiracy and is scheduled to be sentenced on Dec. 1, 2010, at 9:30 a.m.  All remain in federal custody, as does Santos.

 

In addition to the ATF - Baltimore Field Division; Montgomery County Police Department; Montgomery County State’s Attorney’s Office; Prince George’s County Police Department; Prince George’s County State’s Attorney’s Office; and New York City Police Department, assistance was provided by the Gaithersburg Police Department, the Montgomery County Sheriff’s Office, the Maryland National Capital Park Police - Prince George’s County Division, the Maryland State Police, the New York Police Department; the U.S. Secret Service, the Internal Revenue Service - Criminal Investigation and U.S. Immigration and Customs Enforcement.

       

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

WASHINGTON – The Justice Department today announced that it has reached an agreement with Illinois officials to help ensure that military service members and other U.S. citizens living overseas have an opportunity to participate fully in the Nov. 2, 2010, federal general election.  The agreement was necessary to ensure Illinois’s compliance with the 2009 Military and Overseas Voter Empowerment Act (MOVE Act).

The agreement, which must be approved by the federal district court in Chicago, was filed in conjunction with a lawsuit alleging the state violated federal law when numerous election authorities in Illinois counties failed to transmit ballots by Sept. 18, 2010, to military and overseas voters who requested absentee ballots, and in some counties failed to transmit ballots electronically to voters who had made such requests.

The agreement 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 agreement also extends the date by which ballots from those counties must be postmarked from Nov. 1 to Nov. 2, 2010.   In addition, the agreement requires that any voters who asked to receive their ballots electronically, but were sent the ballot by mail instead, will be transmitted a ballot by the requested electronic method.

The Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA) requires states to allow uniformed service voters, serving both overseas and within the United States, and their families and overseas citizens to register to vote and to vote absentee for all elections for federal office.  In 2009, Congress enacted the MOVE Act, which made broad amendments to UOCAVA.  Among those changes was a requirement that states transmit absentee ballots to voters covered under UOCAVA, by mail or electronically at the voter’s option, no later than 45 days before federal elections. 

"The Justice Department is committed to vigorous enforcement of the MOVE Act so that members of the uniformed services, their families and other citizens living overseas are able to exercise their right to vote and know their votes will be counted," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.  "I am pleased that we are able to reach this agreement with Illinois officials, which will ensure that the state’s military and overseas voters can participate in the upcoming federal elections."

As part of the agreement, the state will take steps to investigate the cause of the late mailing of ballots and failure to transmit ballots electronically and to ensure compliance in future federal elections and provide a report to the Department of Justice on those efforts.  

The department previously reached agreements with Alaska, Colorado, the District of Columbia, Hawaii, Kansas, Mississippi, Nevada, North Dakota and the U.S. Virgin Islands; and filed lawsuits against New York, New Mexico, Wisconsin and Guam seeking relief to help ensure that military service members and other U.S. citizens living overseas have the opportunity to participate fully in the upcoming election. Consent decrees were reached with New York, New Mexico and Wisconsin, and a court-entered injunction was issued in the Guam case. 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 – The Justice Department announced today that a Munster, Ind., condominium association and its three member board of directors have agreed to pay $120,000 to resolve allegations that they refused to approve the sale of a condominium to an African-American couple because of their race and because they had children. The settlement must still be approved by U.S. Senior District Judge Philip P. Simon.

“Our nation will not tolerate someone being denied the right to purchase a home because of their race or because they have children”, said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “This settlement should serve as a message to condominium boards and other housing providers that they must comply with the Fair Housing Act, and that the Justice Department will take aggressive action when they do not.”

“Denying a family the opportunity to buy a home because of their race or because they have children is illegal and unacceptable,” said Department of Housing and Urban Development (HUD) Assistant Secretary for Fair Housing and Equal Opportunity John Trasvina. “HUD and the Justice Department are committed to vigorously working to eliminate housing discrimination whenever and wherever we find it.”

The settlement resolves a lawsuit filed by the Justice Department on July 14, 2008, against the Autumn Ridge Condominium Association and the three members of its Board of Directors, Richard Archie, Ronald Patterson and James Reed. The United States alleged that the defendants violated the Fair Housing Act when, in 2006, they refused to approve the sale of a condominium at Autumn Ridge to an African-American man who intended to reside there with his fiancé, who is also African-American, and her two mino r children. The United States alleged that the defendants refused to approve the sale because the couple was African-American and because they had children. The condominium rules for Autumn Ridge then in effect prohibited the sale of a unit to persons with minor children. The couple, the owner who had attempted to sell them the condominium and the four real estate agents involved in the transaction filed complaints with the HUD. After an investigation, HUD determined that there was reasonable cause to believe that the defendants had violated the Fair Housing Act and referred the matter to the Justice Department.

The settlement requires the defendants to pay $106,500 to the couple and the real estate agents, and to pay $13,500 in civil penalties to the United States. The settlement also requires Autumn Ridge to revise its rules to remove any restriction on occupancy by families with children, requires Autumn Ridge to obtain training in the Fair Housing Act for its board members and requires the president of the Board of Directors for Autumn Ridge, Richard Archie, to resign permanently from the board.

Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status (having one or more children under 18), national origin and disability.

More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt/. Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.justice.gov/crt/housing or www.hud.gov/fairhousing.

WASHINGTON - Brooklyn-area resident Yefim Drakhler pleaded guilty today in U.S. District Court in Brooklyn for his participation in a Medicare fraud scheme operated out of the Solstice Wellness Center, a Brooklyn-area clinic purportedly providing physical therapy and various diagnostic services.

 

Drakhler, 74, pleaded guilty to conspiring to solicit and receive cash kickbacks in return for purportedly receiving treatment at Solstice. According to the underlying complaint, Drakhler was a Medicare patient at Solstice and was paid cash kickbacks in exchange for purportedly receiving medical services at Solstice which were subsequently billed to Medicare.

 

The complaint alleges that a former medical provider at Solstice turned over a ledger book to law enforcement which contained the names of Medicare beneficiaries, including Drakhler, and an indication of the number of visits to the clinic made by those beneficiaries.

 

At the plea hearing, Drakhler admitted that from approximately January 2009 to April 2010, he made visits to Solstice for medical services and that he was paid cash for receiving these services at the clinic. In addition, Drakhler admitted that he received these cash payments in a small room at Solstice from a man who Drakhler identified as one of the owners of Solstice.

 

According to the complaint, Drakhler was an “over-utilized beneficiary” or a Medicare beneficiary who appears to be shared among various providers and receives an excessive volume of services. According to the complaint, approximately $214,516 worth of services from 124 medical providers was billed to Medicare under Drakhler’s Medicare number during a six-year period.

 

The charge of conspiracy to solicit and receive health care kickbacks carries a maximum sentence of five years in prison and a $250,000 fine. A sentencing date has not yet been scheduled.

 

Today’s charges were announced by Assistant Attorney General of the Criminal Division Lanny A. Breuer; U.S. Attorney for the Eastern District of New York Loretta E. Lynch; and Daniel R. Levinson, Inspector General of the Department of Health & Human Services (HHS).

 

The case is being prosecuted by Deputy Chief Hank Bond Walther and Trial Attorneys Katherine Houston and Steven Kim of the Criminal Division’s Fraud Section. The case was investigated by the HHS Office of the Inspector General, the Office of the New York Attorney General’s Medicaid Fraud Control Unit, and the New York Office of the Medicaid Inspector General. 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 Eastern District of New York.

 

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

 

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

WASHINGTON – A citizen of Uzbekistan residing in Mission, Kan., pleaded guilty late yesterday to charges for his role as the leader of a criminal enterprise that engaged in forced labor, fraud in foreign labor contracting, visa fraud, mail fraud, identity theft, tax evasion and money laundering, the Justice Department announced today.  Today’s conviction was prosecuted under the statute prohibiting fraud in foreign labor contracting enacted as part of the Trafficking Victim’s Reauthorization Act of 2008.  

According to court documents, Abrorkhodja Askarkhodjaev, 31, pleaded guilty to racketeering conspiracy, fraud in foreign labor contracting, evasion of corporate employment tax, and identity theft. As leader of this criminal enterprise, Askarkhodjaev arranged for the recruitment and exploitation of foreign national workers. Many of these workers were recruited with false promises related to the terms, conditions and nature of their employment. Once the enterprise obtained the workers’ presence in the United States, it maintained their labor through threats of deportation and other adverse immigration consequences.

"The defendant exploited foreign workers and subjected them to servitude through intimidation and fear. The coercion these victims endured rendered them victims of a form of modern-day slavery that is an intolerable deprivation of individual rights," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Department of Justice will continue to vigorously prosecute cases of human trafficking."

"This investigation led to the guilty plea of an individual who, with other defendants, abused the Department of Labor’s foreign labor certification program to fraudulently obtain visas for foreign workers who were victims of human trafficking and other violations. It highlights the OIG’s commitment in protecting the integrity of this program and the OIG will continue to work with our law enforcement partners to investigate this type of crime." stated Daniel R. Petrole, Acting Inspector General, United States Department of Labor.

"The leader of a global criminal enterprise sought to profit from the oppression of vulnerable foreign workers," said Beth Phillips, U.S. Attorney for the Western District of Missouri. "Confronted with the overwhelming evidence we were prepared to present to the jury, on the day of his trial the defendant admitted his guilt and now will be held accountable for his actions."

"This guilty plea underscores the commitment of ICE Homeland Security Investigations to investigate and dismantle human trafficking organizations," said Gary Hartwig, special agent in charge of ICE HSI in Chicago. "This illegal and immoral enterprise exploited foreign workers and subjected them to intolerable living conditions.  However, it also defrauded legitimate guest worker visa programs so the ringleaders could maximize their criminal profits."

Multiple co-defendants have previously pleaded guilty in connection with the case. Co-defendant Kristen Dougherty is set for trial beginning Oct. 25, 2010.

In announcing the plea, Assistant Attorney General Perez and U.S. Attorney Phillips commended the Department of Homeland Security, the FBI, the Department of Labor, the Internal Revenue Service, the Kansas Department of Revenue and the Independence Police Department for their work in this cooperative investigation and prosecution. Assistant United States Attorneys William Meiners and Trey Alford and Civil Rights Division Human Trafficking Prosecution Unit Trial Attorney Jim Felte prosecuted this case for the government.

WASHINGTON – Two Miami health care companies and four owners and senior managers of the companies were indicted today for their alleged participation in a fraud scheme involving approximately $200 million in Medicare billing for purported mental health services, announced the Departments of Justice and Health and Human Services (HHS). In a related civil action, a temporary restraining order was obtained to freeze the assets of the indicted companies and individuals.

A 13-count indictment unsealed today in U.S. District Court in the Southern District of Florida, charges American Therapeutic Corporation (ATC) and Medlink Professional Management Group Inc. (Medlink), as well as Lawrence S. Duran, Marianella Valera, Judith Negron and Margarita Acevedo, aka Margarita De La Cruz, with one count of conspiracy to commit health care fraud. ATC, Duran and Valera were also charged with 11 counts of health care fraud. ATC, Duran, Valera and Acevedo are charged with one count of conspiracy to defraud the United States, to receive health care kickbacks and to pay health care kickbacks. The individuals were all arrested this morning in Miami and will make initial appearances in U.S. District Court later today. Federal agents are conducting search warrants today at six ATC and Medlink locations.

In a separate action, a civil complaint for injunctive relief was unsealed today in U.S. District Court in the Southern District of Florida and a temporary restraining order was obtained to freeze the assets of Duran, Valera, Negron, Acevedo, ATC and Medlink.

"Since the Strike Force began operation, we have rarely seen anything like the illegal conduct charged in this indictment, both in terms of the nature and size of the scheme," said Assistant Attorney General Lanny A. Breuer of the Criminal Division. "The Strike Force is committed to finding and prosecuting individuals and companies who aim to cheat the American taxpayer in this way."

"The alleged fraud in this case was undermining a Medicare health care program that provides an important benefit for beneficiaries who need outpatient psychiatric services," said Assistant Attorney General Tony West of the Civil Division. "Today’s coordinated criminal and civil action has moved in a targeted manner to assure that vital resources meant for beneficiaries are protected, that fraud and abuse in this program are eliminated, and at the same time, that defendants are stripped of their ill-gotten gains."

According to the criminal and civil court documents, the defendants allegedly participated in a scheme to defraud the Medicare program by submitting false claims for mental health services administered at ATC facilities that were medically unnecessary or were not provided. ATC, headquartered in Miami, operated purported partial hospitalization programs (PHPs) in seven different locations throughout Florida, from Homestead to Orlando. A PHP is a form of intensive treatment for mental illness.

Court documents allege that Duran, Valera, Acevedo and ATC paid kickbacks to owners and operators of assisted living facilities (ALFs) and halfway houses in exchange for the ALFs and halfway houses delivering patients from their facilities to ATC. According to the indictment, in many instances, the patients received a portion of the kickbacks from the owners and operators of the ALFs and halfway houses. ATC allegedly billed Medicare for services purportedly provided to these recruited patients. According the indictment, the services were not medically necessary or were not provided at all. According to the civil complaint, ATC routinely admitted patients to the PHP program who suffered from Alzheimer’s and severe dementia and therefore were not eligible for the PHP program because their mental capacity did not allow them to benefit from group therapy.

Court documents allege that patient charts and notes from therapy sessions were routinely altered at ATC in order to make it appear that the patients being treated at ATC qualified for PHP treatments when, in fact, they did not. According to the indictment, Duran and Valera allegedly instructed employees and doctors at ATC to alter diagnoses and medication types and levels to falsely make it appear that the patients qualified for PHP treatments. Court documents also allege that Valera manipulated the length of patients’ stays in order to maximize the number of days Medicare would pay for the PHP services.

The civil complaint and temporary restraining order also name American Sleep Institute Inc. (ASI) and D&V Development Inc., as participants in the health care fraud. Civil court documents allege that ASI was owned and operated by Valera and Duran and that ASI submitted false claims to the Medicare program for sleep studies. According to the civil complaint, D&V Development was owned and operated by Valera and Duran and was established in an effort to divert funds received by ATC and ASI.

"Today’s announcement exemplifies the cooperation between the Department of Justice’s Criminal and Civil Divisions, the U.S. Attorney’s Office in South Florida, HHS-OIG and the FBI," said U.S. Attorney Wifredo A. Ferrer. "Through the HEAT Strike Force, we have pooled our resources and sharpened our efforts to combat the latest health care fraud du jour:  fraud involving community mental health programs.  As this case demonstrates, we have the expertise, the commitment and the resources to tackle these emerging fraudulent schemes."      

"Community mental health centers across the country serve a uniquely vulnerable population," said Daniel R. Levinson, Inspector General of the Department of Health and Human Services.  "Those attempting to defraud this critically important program – as we are charging here today – should expect to pay a heavy price."

"Today’s arrests and search warrants give notice to anyone involved in fraudulent health care practices that there are no ‘safe havens’ for their businesses in South Florida," said Acting Special Agent in Charge William Maddalena.  "The FBI in Miami will continue to make this type of crime a top priority."

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

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

The case is being prosecuted by Trial Attorneys Jennifer L. Saulino and Joseph S. Beemsterboer of the Criminal Division’s Fraud Section, Vanessa I. Reed and Carolyn B. Tapie of the Civil Division and Assistant U.S. Attorney Ted L. Radway of the Southern District of Florida. The case is being investigated by the FBI and HHS Office of Inspector General (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 Southern District of Florida.

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 approximately $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 – The city of Toledo, Ohio, has agreed to make extensive improvements to its sewer system that will significantly reduce the city’s longstanding sewage overflows into Swan Creek and the Maumee and Ottawa Rivers, the city’s main waterways, the Department of Justice, the U.S. Environmental Protection Agency (EPA) and the state of Ohio announced today.

The Clean Water Act settlement lodged today in U.S. District Court for the Northern District of Ohio, modifies a 2002 agreement between the United States, state of Ohio and city of Toledo. The 2002 agreement required that Toledo greatly expand its treatment plant and build a large storage basin to capture stormwater combined with sewage during high flows for later treatment. The parties understood that although the improvements were important, they were only the first phase of the work needed to bring Toledo into compliance with the Clean Water Act. Therefore, the 2002 agreement also required Toledo to conduct a detailed study of the combined portions of its sewer system and propose a plan of additional measures to eliminate or substantially reduce wet weather discharges from Toledo’s combined sewers. Today’s agreement requires the city to implement this plan, which both the U.S. EPA and the Ohio Environmental Protection Agency (Ohio EPA) have now approved.

Under the amended agreement filed today in federal court, Toledo has agreed to expand its sewer system far beyond what it originally proposed to the U.S. EPA and Ohio EPA at a cost estimated at more than $315 million. Once the sewer system expansion is fully constructed as required by the amended agreement, Toledo will reduce its discharges of untreated combined sewage from an average of 35 times in a year to an average of zero to four times per year, depending upon the watershed.

The amended agreement relieves Toledo from having to build certain additional equipment at its wastewater treatment plant as required by the 2002 agreement. Given Toledo’s improved plant capacity and operational procedures, the additional equipment would provide less additional treatment capacity and environmental benefit than what will result from the enhanced combined sewer overflow control measures required by today’s agreement.

"This settlement will serve the citizens of Toledo and will result in dramatic improvements to the conditions of the Maumee River, Ottawa River and Swan Creek – meaning safer recreational use and a much healthier environment for aquatic life," said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the U.S. Department of Justice. "The Department of Justice will ensure that the standards of the Clean Water Act are met and that serious community issues like sewage overflows are addressed."

"The Environmental Protection Agency is committed to enforcing laws that protect the public from exposure to discharges of raw sewage. This agreement shows that when vigorous enforcement is combined with creative and determined negotiation, municipalities, the United States and states can find workable solutions to improving sewer systems that are inadequate for modern needs," said Susan Hedman, Regional Administrator for EPA Region 5.

The modified settlement lodged today, as the First Amendment to Consent Decree in U.S. District Court for the Northern District of Ohio, is subject to a 30-day public comment period and approval by the federal court. A copy of the First Amendment is available on the Justice Department website at www.justice.gov/enrd/Consent_Decrees.html .

WASHINGTON - Eric M. Kurz, 46, of The Woodlands, Texas, pleaded guilty today to conspiracy to commit mail fraud and money laundering in conjunction with his actions as a wholesaler of investment products for A&O, a group of businesses that acquired and marketed life settlements to investors, announced U.S. Attorney Neil H. MacBride for the Eastern District of Virginia and Assistant Attorney General Lanny A. Breuer of the Criminal Division.

This continuing investigation is being conducted by the U.S. Postal Inspection Service, Internal Revenue Service and FBI, with significant assistance from the Texas State Securities Board. The case is being prosecuted by Assistant U.S. Attorneys Michael S. Dry and Jessica Aber Brumberg from the Eastern District of Virginia and Trial Attorney Albert B. Stieglitz Jr., of the Criminal Division’s Fraud Section.

The investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is an investigative arm of the President’s Financial Fraud Enforcement Task Force, an interagency national 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.

Three principals of A&O were charged on Sept. 9, 2010, in an 18-count indictment for their alleged roles in the scheme. They are awaiting trial.

According to the statement of facts, A&O was founded in November 2004, and obtained life settlements from a wholesale life settlement company, then marketed and sold whole and partial interests in those life settlements to investors. A life settlement is an investment in which a person sells his/her life insurance policy for a cash payment, which is a percentage of the policy’s face value or death benefit.

In the statement of facts filed with his plea agreement, Kurz admitted that from September 2005 to November 2007, he was affiliated with A&O, creating marketing materials for A&O’s sales agents to distribute to potential investors. He also admitted that with his co-conspirators, he published information on an A&O website. Kurz knew that the website and marketing materials contained specific misrepresentations about A&O’s management and past success. According to the statement of facts, A&O obtained approximately $100 million from investors in 38 states and in Canada from 2005 to January 2008, based on the material misrepresentations and omission by Kurz and his co-conspirators.

Kurz pleaded guilty before U.S. Magistrate Judge M. Hannah Lauck to a one-count criminal information alleging conspiracy to commit mail fraud and money laundering. At sentencing, he faces a maximum penalty of five years in prison and a $250,000 fine.

WASHINGTON – The Justice Department announced today that the owners and manager of Mountain View Apartments in Longview, Wash., have agreed to pay $12,500 as a civil penalty to settle allegations that they discriminated against families with children in violation of the federal Fair Housing Act. The settlement must be approved by the U.S. District Court for the Western District of Washington.

"The law protects families with children from discrimination when they are looking for housing," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "Particularly in times of economic distress, we must remain vigilant to ensure all individuals have equal access to housing."

"In all our communities, in big cities or small towns, we must ensure equal access to housing. Few things are more fundamental to success and happiness than having a safe place to live," said U.S. Attorney Jenny A. Durkan. "This settlement should serve as a warning to other property owners and managers not to discriminate against families with children."

The settlement resolves the Justice Department’s lawsuit, also filed today, which alleges that the owners and operators of Mountain View stated and maintained a policy of not renting apartments to families with children in one or more of the seven buildings at Mountain View. The allegations are based on evidence generated by the department’s Fair Housing Testing Program, in which individuals pose as renters to gather information about possible discriminatory practices. The lawsuit names as defendants Marilyn Heim, the manager of Mountain View, as well as the owners of Mountain View: Gene Krause, Sylvia Krause, Richard Trull, Melanie Trull, and their general partnership, Trull and Krause.

In addition to the $12,500 civil penalty, the settlement also requires the defendants to obtain training in the Fair Housing Act for themselves and their employees, adopt a non-discrimination policy making clear that families with children may reside in every building on a non-discriminatory basis, and submit periodic reports to the United States for monitoring purposes.

Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt . Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.usdoj.gov/crt/housing or www.hud.gov/fairhousing.

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).

 

Cynthia Garza-Williams, 49, pleaded guilty to conspiracy to commit health care fraud before U.S. District Court Judge Nancy Atlas in Houston.  According to court documents, Family Healthcare Group (Family Group) purported to provide skilled nursing to Medicare beneficiaries.  The owner hired co-conspirators, including Garza-Williams, to recruit Medicare beneficiaries for the purposes of filing claims with Medicare for skilled nursing.  Family Group then used the Medicare beneficiary numbers to submit claims to Medicare for skilled nursing that was medically unnecessary and/or not provided.  

 

Garza-Williams admitted that on a monthly basis she gave cash-filled envelopes to a medical doctor.  In return, the medical doctor signed plans of care for home health care services that were not medically necessary.   In total, Family Group was paid approximately $5.2 million by Medicare based on the submission of fraudulent claims. 

               

At sentencing, scheduled for Apr. 18, 2011, Garza-Williams 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 the 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 – Un ciudadano de Uzbekistán residente en Mission, Kan., se declaró culpable ayer a la tarde de cargos por su papel como líder de una empresa delictiva dedicada a los trabajos forzados, fraude en la contratación de mano de obra extranjera, fraude de visa, fraude postal, robo de identidad, evasión de impuestos y lavado de dinero, anuncio hoy el Departamento de Justicia. La condena de hoy es la primerísima condena a utilizar la ley que prohíbe el fraude en la contratación de mano de obra extranjera promulgada como parte de la Ley de Reautorización de Víctimas del Tráfico de 2008.  

De acuerdo con el expediente judicial, Abrorkhodja Askarkhodjaev, 31, se declaró culpable de conspiración para cometer delincuencia organizada, fraude en la contratación de mano de obra extranjera, evasión de impuestos de nómina de empleados empresariales, y robo de identidad. Cómo líder de la empresa delictiva, Askarkhodjaev realizó arreglos para reclutar y explotar a trabajadores extranjeros. Muchos de estos trabajadores fueron reclutados con promesas falsas asociadas a los términos, las condiciones y la naturaleza de su empleo. Una vez que la empresa obtenía la presencia de los trabajadores en los Estados Unidos, los mantenía trabajando a través de amenazas de deportación y otras consecuencias inmigratorias adversas.

"El demandado explotó a los trabajadores extranjeros y luego los sujetó a un régimen de esclavitud a través de la intimidación y el temor. La coerción sufrida por estas víctimas las convirtió en víctimas de una forma de esclavitud moderna que es una privación intolerable de los derechos individuales", dijo Thomas E. Pérez, Secretario de Justicia Auxiliar para la División de Derechos Civiles. "El Departamento de Justicia seguirá enjuiciando los casos de tráfico de personas enérgicamente".

"Esta investigación llevó a la declaración de culpabilidad de un individuo que, junto con otros demandados, abusó del programa de certificación de mano de obra extranjera del Departamento del Trabajo para obtener visas fraudulentamente para trabajadores extranjeros que eran víctimas de tráfico de personas y otras violaciones. Destaca el compromiso de la Oficina del Inspector General de proteger la integridad de este programa y la OIG seguirá trabajando con nuestros asociados de las fuerzas del orden público en la investigación de este tipo de delito". Dijo Daniel R. Petrole, Inspector General Interino, Departamento del Trabajo de los Estados Unidos.

"El líder de una empresa delictiva global buscó obtener ganancias a través de la opresión de trabajadores extranjeros vulnerables", dijo Beth Phillips, Fiscal Federal para el Distrito Oeste de Missouri. "Confrontado con las pruebas sobrecogedoras que estábamos preparados para presentar al jurado, el día de su enjuiciamiento el demandado admitió su culpa y ahora será responsabilizado por sus actos".

"Esta declaración de culpabilidad destaca el compromiso de Investigaciones de Seguridad Nacional del Servicio de Inmigración y Control de Aduanas de investigar y desmantelar las organizaciones de tráfico de personas", dijo Gary Hartwig, agente especial a cargo de ICE HSI en Chicago. "Esta empresa ilegal e inmoral explotaba a trabajadores extranjeros, sujetándolos a condiciones de vida intolerables. Sin embargo, también defraudó a programas legítimos de visas para trabajadores invitados para poder así maximizar sus ganancias provenientes del delito".

Múltiples codemandados se habían declarado culpables anteriormente en conexión con el caso. El inicio del juicio del codemandado Kristen Dougherty ha sido programado para el 25 de octubre de 2010.

Al anunciar la declaración de culpabilidad, el Secretario de Justicia Auxiliar Pérez y el Fiscal Federal Phillips elogiaron la labor del Departamento de Seguridad Nacional, del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)], el Servicio de Impuestos Internos, el Departamento de Impuestos de Kansas y el Departamento de Policía de Independence en esta investigación y enjuiciamiento colectivos. Estuvieron a cargo de la acusación en el caso en nombre del gobierno los Fiscales Federales Auxiliares William Meiners y Trey Alford y el Abogado Litigante de la Unidad de Enjuiciamiento de Tráfico de Personas de la División de Derechos Humanos Jim Felte.

WASHINGTON - A federal grand jury in Nashville, Tenn., today returned an indictment charging Hickman County, Tenn., Deputy Sheriff Kenneth H. Smith with federal civil rights violations, as well as charges of lying to federal investigators, the Justice Department announced.

The indictment alleges that in or about May 2008, Smith violated a victim’s right to be free from interference with bodily integrity by engaging in aggravated sexual abuse. The indictment further alleges that Smith caused that victim bodily injury in the course of violating her civil rights.

The indictment also alleges that in September, October and December 2008, Smith violated the rights of two other victims to be free from an unreasonable search by photographing various parts of their unclothed bodies under the false pretense that those photographs were necessary for an official investigation. The indictment additionally alleges that on Jan. 13, 2009, Smith knowingly made two materially false statements to investigators.

An indictment is only an allegation, and a defendant is presumed innocent unless and until proven guilty.

The case was investigated by investigators with the FBI and the Tennessee Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Hal McDonough and Civil Rights Division Trial Attorney Jonathan Skrmetti.

WASHINGTON – Lindsey Manufacturing Company, una empresa de Azusa, Calif., y dos de sus ejecutivos fueron acusados formalmente hoy por sus supuestos papeles en una conspiración para pagar sobornos a funcionarios gubernamentales mexicanos de la Comisión Federal de Electricidad (CFE), una empresa estatal de servicios públicos, anunciaron el Secretario de Justicia Auxiliar de la División Criminal Lanny A. Breuer; el Fiscal Federal André Birotte Jr. del Distrito Central de California; Steven M. Martínez, Agente Especial a Cargo de la Oficina Local en Los Ángeles del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)]; y Leslie DeMarco, Agente Especial a Cargo de la Oficina Local en los Ángeles de la División de Investigación Criminal de Servicios de Impuestos Internos [Internal Revenue Service - Criminal Investigation (IRS-CI)]. 

 

Keith E. Lindsey, 65, de La Canadá, Calif.; Steve K. Lee, 60, de Diamond Bar, Calif; y Lindsey Manufacturing Company fueron acusados cada uno en una acusación formal relevante compuesta por ocho cargos, de conspiración para violar la Ley de Prácticas Corruptas en el Extranjero (FCPA) y violaciones de la FCPA. La acusación formal relevante también acusa a Enrique Faustino Aguilar Noriega, 56, y Ángela María Gómez Aguilar, 55, ambos de Cuernavaca, México, quienes fueron anteriormente acusados formalmente el 15 de septiembre de 2010. Enrique Aguilar fue acusado de conspiración para violar la FCPA y violaciones de la FCPA. Enrique y Ángela Aguilar fueron acusados cada uno de conspiración para cometer lavado de dinero y lavado de dinero.

Según la acusación formal relevante, la CFE es responsable de suministrar electricidad en México y realiza contratos con empresas mexicanas y extranjeras por bienes y servicios para ayudar a brindar servicios eléctricos a sus consumidores. Enrique y Ángela Aguilar eran directores de Grupo Internacional de Asesores S.A. (Grupo), el cual alegaba proveer servicios de representación de ventas para empresas que realicen negocios con CFE.

De acuerdo con la acusación formal relevante, Lindsey Manufacturing contrató a Grupo como su representante de ventas en México y para obtener contratos para la empresa del CFE. Lindsey Manufacturing realiza sistemas de restauración de emergencia y otros equipos utilizados por empresas de servicios públicos de electricidad. De acuerdo con la acusación formal relevante, muchos de los clientes de Lindsey Manufacturing eran empresas de servicios públicos estatales extranjeras, incluida CFE, uno de los clientes más importantes de la empresa. Grupo recibió un porcentaje de los ingresos recibidos por Lindsey Manufacturing de sus contratos con CFE.

Desde aproximadamente febrero de 2002 a marzo de 2009, Lindsey Manufacturing, Lindsey, Lee y Enrique Aguilar supuestamente orquestaron un ardid en el que Enrique Aguilar recibió una comisión del 30 por ciento sobre todos los bienes y servicios que Lindsey Manufacturing vendió a CFE, aunque se trataba de una comisión significativamente más alta que la que habían recibido representantes de ventas de la compañía anteriores. La acusación formal relevante alega que Lindsey y Lee comprendían que toda o parte de la comisión del 30 por ciento sería utilizada para pagar sobornos a funcionarios mexicanos a cambio de la adjudicación de contratos de CFE a Lindsey Manufacturing Company. Los costos de los bienes y servicios vendidos a CFE supuestamente sufrieron un aumento de precio del 30 por ciento para asegurar que costo adicional pagado a Enrique Aguilar era absorbido por CFE y no Lindsey Manufacturing.

Enrique Aguilar supuestamente causó la presentación de facturas fraudulentas del Grupo a Lindsey Manufacturing por el 30 por ciento del precio del contrato. De acuerdo con la acusación formal relevante, Lindsey y Lee luego hicieron que el dinero solicitado en las facturas fraudulentas fuera transferido a una cuenta de corretaje de Grupo, supuestamente a sabiendas de que las facturas eran fraudulentas y los fondos estaban siendo utilizados como soborno.

Enrique y Ángela Aguilar supuestamente luego lavaron el dinero en la cuenta de corretaje de Grupo para realizar pagos ocultos en beneficio de los funcionarios de CFE. De acuerdo con la acusación formal, Enrique y Ángela Aguilar compraron un yate por aproximadamente $1.8 millones de dólares de nombre "Dream Seeker" y un Ferrari por $297,500 para un funcionario de CFE. De acuerdo con la acusación formal, Enrique y Ángela Aguilar también pagaron más de $170,000 dólares en cuentas de American Express para el funcionario de CFE y enviaron aproximadamente $600,000 dólares a parientes de un funcionario de CFE.

Ángela Aguilar fue arrestada el 10 de agosto de 2010, debido a una acusación criminal cuando se dirigía de Houston a México. Se ordenó su detención y fue enviada al Distrito Central del California, donde permanece en custodia.

Una acusación formal es apenas una acusación y los demandados son considerados inocentes hasta que se pruebe su culpabilidad, más allá de la duda razonable.

El cargo de conspiración bajo la FCPA conlleva una sentencia máxima de cinco años de prisión y una multa de $250,000 dólares o el doble del valor ganado o perdido, lo que sea mayor. Cada uno de los cuatro cargos bajo la FCPA tiene una sentencia máxima de cinco años de prisión y una multa de $100,000 dólares o el doble del valor ganado o perdido, lo que sea mayor. Los cargos de conspiración y gran lavado de dinero tienen una sentencia máxima cada uno de 20 años de prisión y una multa de $500,000 dólares o el doble del valor de la propiedad asociada a la transacción, lo que sea mayor. La acusación formal también da aviso de confiscación criminal.

Están cargo de la acusación en el caso el Abogado Litigante Principal Nicola J. Mrazek de la Sección de Fraude de la División Criminal y el Fiscal Federal Auxiliar Douglas M. Miller en el Distrito Central de California. El caso fue investigado por la Oficina Local en los Ángeles del FBI y la Oficina Local en Los Ángeles de IRS-CI, con la asistencia de la Oficina del Inspector General del Departamento de Seguridad Nacional. La Oficina de Asuntos Internacionales de la División Criminal prestó asistencia significativa en el caso. El Departamento de Justicia también agradece a las autoridades mexicanas por su asistencia constante en este asunto.

WASHINGTON - Dos empresas del ramo de la salud de Miami y cuatro propietarios y gerentes principales de las empresas fueron acusados formalmente hoy de su supuesta participación en un ardid de fraude asociado a aproximadamente $200 millones de dólares en facturación a Medicare por supuestos servicios de salud mental, anunciaron los Departamentos de Justicia y de Salud y Servicios Humanos [Health and Human Services (HHS)]. En un proceso civil asociado, se obtuvo una orden de protección temporal para congelar los bienes de las compañías y personas acusadas.

Una acusación formal compuesta por 13 cargos revelada hoy en el Tribunal Federal de Distrito en el Distrito Sur de Florida, acusa a American Therapeutic Corporation (ATC) y Medlink Professional Management Group Inc. (Medlink), así como a Lawrence S. Duran, Marianella Valera, Judith Negrón y Margarita Acevedo, alias Margarita De La Cruz, de un cargo de conspiración para cometer fraude de servicios médicos. ATC, Duran y Valera también fueron acusados de 11 cargos de fraude de servicios médicos. ATC, Duran, Valera y Acevedo fueron acusados de un cargo de conspiración para defraudar a los Estados Unidos, para recibir comisiones ilícitas asociadas a servicios médicos y pagar comisiones ilícitas asociadas a servicios médicos. Los individuos fueron todos arrestados esta mañana en Miami y harán su comparecencia inicial en el Tribunal Federal de Distrito más tarde hoy. Agentes federales se encuentran ejecutando órdenes de allanamiento hoy en seis instalaciones de ATC y Medlink.

En una acción separada, se reveló hoy en el Tribunal Federal de Distrito en el Distrito Sur de Florida una demanda civil por agravio judicial y se obtuvo una orden de protección temporal para congelar los activos de Duran, Valera, Negrón, Acevedo, ATC y Medlink.

"Desde que la Fuerza de Ataque comenzó a operar, raramente hemos visto algo como la conducta ilegal objeto de esta acusación formal, tanto en términos de la naturaleza como del tamaño del ardid", dijo el Secretario de Justicia Auxiliar Lanny A. Breuer de la División Criminal. "La Fuerza de Tarea se compromete a encontrar y enjuiciar a personas y compañías que intenten engañar de esta manera al contribuyente estadounidense".

"El fraude alegado en este caso estaba debilitando un programa médico de Medicare que provee un beneficio importante para beneficiarios que necesiten servicios psiquiátricos ambulatorios", dijo el Secretario de Justicia Auxiliar Tony West de la División Civil. "La acción criminal y civil coordinada de hoy se ha movido de manera a asegurar que los recursos vitales dirigidos a los beneficiarios sean protegidos, que se eliminen el fraude y el abuso en este programa y, al mismo tiempo, que se les confisquen a los demandados sus ganancias mal obtenidas".

De acuerdo con los documentos del tribunal criminal y civil, se alega que los demandados participaron en un ardid para defraudar al programa Medicare al presentar reclamos falsos por servicios de salud mental administrados en instalaciones de ATC que eran médicamente innecesarios o nunca fueron provistos. ATC, con sede principal en Miami, operaba supuestos programas de hospitalización parcial (PHPs) en siete localidades de Florida, desde Homestead a Orlando. El PHP es una forma de tratamiento intensivo para la enfermedad mental.

El expediente judicial alega que Duran, Valera, Acevedo y ATC pagaron comisiones ilícitas a propietarios y operadores de instalaciones de vivienda asistida [assisted living facilities (ALFs)] y centros de reingreso social a cambio de que las ALFs y centros de reingreso social enviaran pacientes de sus instalaciones a ATC. De acuerdo con la acusación formal, en muchos casos, los pacientes recibían una parte de las comisiones ilícitas de los propietarios y operadores de las ALFs y centros de reingreso social. Se alega que ATC facturó a Medicare por servicios supuestamente provistos a estos pacientes reclutados. De acuerdo con la acusación formal, los servicios no eran médicamente necesarios o no fueron provistos en absoluto. De acuerdo con la demanda civil, como rutina, ATC admitía a pacientes al programa PHP que sufrían de Alzheimer y demencia grave y, por lo tanto, no eran elegibles para el programa PHP porque su capacidad mental no les permitía beneficiarse a través de la terapia de grupo.

El expediente judicial alega que las fichas y notas de los pacientes de las sesiones de terapia eran alteradas como rutina en ATC, a fin de que pareciera que los pacientes tratados en ATC reunían los requisitos para tratamientos PHP, cuando de hecho no era así. De acuerdo con la acusación formal, se alega que Duran y Valera instruyeron a empleados y médicos de ATC que alteraran diagnósticos y tipos y niveles de medicación para que pareciera que los pacientes reunían los requisitos para tratamientos PHP. El expediente judicial también alega que Valera manipulaba la duración de las estadías de los pacientes a fin de maximizar el número de días que Medicare pagaría por los servicios PHP.

La demanda civil y la orden de protección temporal también nombran a American Sleep Institute Inc. (ASI) y D&V Development Inc., como participantes en el fraude de servicios médicos. El expediente judicial alega que ASI era propiedad de Valera y Duran, quienes la administraban, y que ASI presentó reclamos falsos al programa Medicare por estudios del sueño. De acuerdo con la demanda civil, D&V Development pertenecía a Valera y Duran y era operada por los mismos y fue establecida con la finalidad de desviar fondos recibidos por ATC y ASI.

"El anuncio de hoy ejemplifica la cooperación entre las Divisiones Criminal y Civil del Departamento de Justicia, la Fiscalía Federal en el Sur de Florida, HHS-OIG y el FBI", dijo el Fiscal Federal Wifredo A. Ferrer. "A través de la Fuerza de Ataque HEAT, hemos reunido nuestros recursos y mejorado nuestros esfuerzos para combatir el más reciente tipo de fraude de servicios médicos: el fraude asociado a programas de salud mental comunitarios. Como demuestra este caso, contamos con los conocimientos, el compromiso y los recursos para acabar con estos ardides fraudulentos emergentes".

"Los centros de salud mental comunitarios de todo el país atienden a una población singularmente vulnerable", dijo Daniel R. Levinson, Inspector General del Departamento de Salud y Servicios Humanos. "Quienes intenten defraudar este programa críticamente importante, como acusamos en este caso, deben prever tener que pagar un precio muy alto".

"Los arrestos y las órdenes de allanamiento de hoy avisan a cualquiera que se dedique a prácticas de fraude de servicios médicos de que no existen 'refugios seguros' para sus empresas en el Sur de Florida", dijo el Agente Especial a Cargo Interino William Maddalena. "El Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)] en Miami seguirá haciendo de este tipo de delito una alta prioridad".

Una acusación formal es una mera acusación y se supone que los demandados son inocentes hasta que se pruebe lo contrario.

Las acciones de hoy fueron anunciadas por el Secretario de Justicia Auxiliar Lanny A. Breuer de la División Criminal; el Secretario de Justicia Auxiliar Tony West de la División Civil; el Fiscal Federal Wifredo A. Ferrer del Distrito Sur de Florida; el Agente Especial a Cargo John V. Gillies de la Oficina Local de Miami del FBI; y Daniel R. Levinson, Inspector General del HHS.

Están a cargo de la acusación en el caso los Abogados Litigantes Jennifer L. Saulino y Joseph S. Beemsterboer de la Sección de Fraude de la División Criminal, Vanessa I. Reed y Carolyn B. Tapie de la División Civil y el Fiscal Federal Auxiliar Ted L. Radway del Distrito Sur de Florida. El caso está siendo investigado por el Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)] y la Oficina del Inspector General del HHS. La demanda fue entablada como parte de la Fuerza de Ataque al Fraude contra Medicare, supervisada por la Sección de Fraude de la División Criminal y la Fiscalía Federal para el Distrito Sur de Florida.

Desde su creación en marzo de 2007, las operaciones de las Fuerzas de Ataque en siete distritos obtuvieron las acusaciones formales de más de 825 individuos que, en conjunto, facturaron de manera fraudulenta al programa Medicare aproximadamente $2 billones de dólares. Además, los Centros para Servicios de Medicare y Medicaid del HHS, trabajando en conjunto con la HHS-OIG, están tomando medidas para aumentar la responsabilización y reducir la presencia de proveedores fraudulentos.

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

WASHINGTON – Lindsey Manufacturing Company, an Azusa, Calif., company and two of its executives were indicted today for their alleged roles in a conspiracy to pay bribes to Mexican government officials at the Comisión Federal de Electricidad (CFE), a state-owned utility company, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney André Birotte Jr. for the Central District of California; Steven M. Martinez, Special Agent-in-Charge of the FBI’s Los Angeles Field Office; and Leslie DeMarco , Special Agent-in-Charge of the Internal Revenue Service - Criminal Investigation’s (IRS-CI) Los Angeles Field Office.

Keith E. Lindsey, 65, of La Canada, Calif.; Steve K. Lee, 60, of Diamond Bar, Calif.; and Lindsey Manufacturing Company each were charged in an eight-count superseding indictment with conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and FCPA violations. The superseding indictment also charges Enrique Faustino Aguilar Noriega, 56, and Angela Maria Gomez Aguilar, 55, both of Cuernavaca , Mexico , who were previously indicted on Sept. 15, 2010. Enrique Aguilar is charged with the conspiracy to violate the FCPA and FCPA violations. Enrique and Angela Aguilar each are charged with conspiracy to commit money laundering and money laundering.

 

According to the superseding indictment, CFE is responsible for supplying electricity in Mexico, and contracts with Mexican and foreign companies for goods and services to help supply electricity services to its customers. Enrique and Angela Aguilar were directors of Grupo Internacional de Asesores S.A. (Grupo), which purported to provide sales representation services for companies doing business with CFE.

 

According to the superseding indictment, Lindsey Manufacturing hired Grupo to serve as its sales representative in Mexico and to obtain contracts for it from CFE. Lindsey Manufacturing makes emergency restoration systems and other equipment used by electrical utility companies. According to the superseding indictment, many of Lindsey Manufacturing’s clients were foreign, state-owned utilities, including CFE, which was one of the company’s most significant customers. Grupo received a percentage of the revenue Lindsey Manufacturing realized from its contracts with CFE.

 

From approximately February 2002 until March 2009, Lindsey Manufacturing, Lindsey, Lee and Enrique Aguilar allegedly orchestrated a scheme in which Enrique Aguilar was paid a 30 percent commission on all the goods and services Lindsey Manufacturing sold to CFE, even though this was a significantly higher commission than previous sales representatives for the company had received. The superseding indictment alleges that Lindsey and Lee understood that all or part of the 30 percent commission would be used to pay bribes to Mexican officials in exchange for CFE awarding contracts to Lindsey Manufacturing Company. The costs of goods and services sold to CFE allegedly were increased by 30 percent to ensure that the added cost of paying Enrique Aguilar was absorbed by CFE and not Lindsey Manufacturing.

 

Enrique Aguilar allegedly caused fraudulent invoices to be submitted from Grupo to Lindsey Manufacturing for 30 percent of the contract price. According to the superseding indictment, Lindsey and Lee then caused the money requested in the fraudulent invoices to be wired into Grupo’s brokerage account, allegedly knowing that the invoices were fraudulent and the funds were being used as bribes.

 

Enrique and Angela Aguilar allegedly then laundered the money in the Grupo brokerage account to make concealed payments for the benefit of CFE officials. According to the indictment, Enrique and Angela Aguilar purchased a yacht for approximately $1.8 million named the Dream Seeker and a Ferrari for $297,500 for a CFE official. According to the indictment, Enrique and Angela Aguilar also paid more than $170,000 worth of American Express bills for a CFE official and sent approximately $600,000 to relatives of a CFE official.

 

Angela Aguilar was arrested on Aug. 10, 2010, on a criminal complaint when she travelled to Houston from Mexico. She was ordered detained and removed to the Central District of California, where she remains in custody.

 

An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

 

The FCPA conspiracy charge carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost.  Each of the four FCPA counts carries a maximum penalty of five years in prison and a fine of the greater of $100,000 or twice the value gained or lost.  The conspiracy and substantive money laundering counts each carry a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.  The indictment also gives notice of criminal forfeiture.

The case is being prosecuted by Senior Trial Attorney Nicola J. Mrazek of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Douglas M. Miller in the Central District of California.  The case was investigated by the FBI’s Los Angeles Field Office and the IRS-CI Los Angeles Field Office, with the assistance of the Department of Homeland Security Office of Inspector General. Significant assistance was provided by the Criminal Division’s Office of International Affairs. The Department of Justice also thanks Mexican authorities for their ongoing assistance in this matter.

WASHINGTON – Zachary Adam Chesser, 20, of Fairfax County, Va., pleaded guilty today before U.S. District Court Judge Liam O’Grady to a three-count criminal information that included charges of communicating threats against the writers of the South Park television show, soliciting violent jihadists to desensitize law enforcement, and attempting to provide material support to Al-Shabaab, a designated foreign terrorist organization.

The guilty plea was announced by David Kris, Assistant Attorney General for the National Security Division; 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.

Chesser faces a maximum penalty of 30 years in prison when he is sentenced on Feb. 25, 2011.

"The defendant attempted to provide material support to a foreign terrorist organization and used the Internet to incite violence.  Thankfully, his commitment to violence was outmatched by the dedicated work of the agents, prosecutors and analysts who worked tirelessly to bring this man to justice," said Assistant Attorney General David Kris.  "Today’s guilty plea is a direct result of the partnership and cooperation between the National Security Division, the U.S. Attorney’s Office and the FBI."

"Zachary Chesser seriously endangered the lives of innocent people who will remain at risk for many years to come," said U.S. Attorney MacBride.  "His solicitation of extremists to murder U.S. citizens also caused people throughout the country to fear speaking out – even in jest – lest they also be labeled as enemies who deserved to be killed.  In admitting his guilt today, Mr. Chesser reminded us of the serious threat homegrown jihadists pose to this country, and I express my gratitude and admiration for the FBI agents who apprehended Mr. Chesser before he could endanger even more Americans."

"The FBI’s number one priority is to combat terrorist attacks against the United States," said FBI Acting Assistant Director in Charge Perren. "Using broad-based communication channels to threaten, harm and intimidate and then incite others to do the same will not be tolerated.  The FBI works to investigate persons who have acted on a radical philosophy and seek to harm to U.S. citizens."

According to court documents filed with his plea agreement, Chesser maintained several online profiles dedicated to extremist jihad propaganda. Today, Chesser pleaded guilty to taking repeated steps in April 2010 to encourage violent jihadists to attack the writers of South Park for their depiction of Muhammad, including highlighting their residence and urging online readers to "pay them a visit." Among the steps he took was posting on multiple occasions speeches by Anwar Al-Awlaki, which explained the Islamic justification for killing those who insult or defame Muhammad. Al-Awlaki was designated by the United States as a "Specially Designated Global Terrorist" on July 12, 2010.

Chesser also admitted that in May 2010, he posted to a jihadist website the personal contact information of individuals who had joined the "Everybody Draw Muhammad Day" group on Facebook, with the prompting that this is, "Just a place to start."

Chesser also pleaded guilty to soliciting others to desensitize law enforcement by placing suspicious-looking but innocent packages in public places. Chesser explained through a posting online that once law enforcement was desensitized, a real explosive could be used. Chesser ended the posting with the words, "Boom! No more kuffar." According to court documents, "kuffar" means unbeliever, or disbeliever.

According to court records, Chesser also admitted that from at least January 2010 through July 2010, he posted numerous messages online that included calls from Al-Awlaki to join violent jihadists and step-by-step actions individuals needed to take to leave for jihad. Among those postings included a video Chesser made that featured images of mujahedeen in Somalia and a song, sung by Chesser, with the translated title, "America We Are Coming."

Chesser admitted that he promoted online what he called "Open Source Jihad," where he would direct jihadists through his online forums to information on the Internet that they could use to elude capture and death while maintaining relevance and striking capability. This included linking to the entire security screening manual used by the Transportation Security Administration and hundreds of books that contained information on the construction of antiaircraft missiles, and tactics, techniques and weapons for targeting aircraft such as jet airplanes and helicopters.

In addition, Chesser pleaded guilty to attempting to provide material support to Al-Shabaab. On Feb. 29, 2008, the U.S. Department of State designated Al-Shabaab as a foreign terrorist organization, describing it as a violent and brutal extremist group based in Somalia with a number of individuals affiliated with Al-Qaeda. This designation prohibits providing material support or resources to Al-Shabaab.

According to court records, Chesser admitted that he twice attempted to leave the United States and travel to Somalia for the purpose of joining Al-Shabaab and engage in violent jihad as a foreign fighter. The first attempt was in November 2009, which was postponed because his wife was unable to obtain her passport. The second attempt was on July 10, 2010, when he sought to board a flight from New York to Uganda with his infant son. He was prevented from boarding the plane, and Chesser admitted that he brought his son with him as part of his "cover" to avoid detection of his intention to join Al-Shabaab in Somalia. He also attempted to board the plane with a video camera, which he admitted in court that he intended to use to make production quality videos for al-Shabaab’s propaganda campaign.

Chesser also admitted today in court that he posted several online messages in support of Al-Shabaab, including videos of attacks by Al-Shabaab on a government building in Mogadishu, a video claiming that African Union troops are responsible for killing civilians in Somalia, a video supporting the merger of Al-Shabaab with another organization, and links to what Chesser described as the "Al Qaeda Manual" that included instructions in support of violent jihad.

This case is being investigated by the FBI Washington Field Office. Assistant U.S. Attorneys Gordon Kromberg and Thomas H. McQuillan of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney John T. Gibbs of the Counterterrorism Section in the National Security Division are prosecuting the case.

WASHINGTON – T he United States, 14 states and the Saint Regis Mohawk Tribe have entered into a settlement agreement with Chapter 11 debtor Motors Liquidation Company (Old GM), formerly known as General Motors Corporation, to settle certain environmental liabilities under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), the Resource Conservation and Recovery Act (RCRA) and state environmental laws, the Justice Department announced today. A settlement agreement among the United States, the states and Old GM was filed in Manhattan bankruptcy court this morning, which the Saint Regis Mohawk Tribe is expected to join shortly.

The announcement was made by Gary G. Grindler, Acting Deputy Attorney General; Preet Bharara, U.S. Attorney for the Southern District of New York; Lisa Jackson, Administrator of the Environmental Protection Agency (EPA); and Department of Labor Secretary Hilda Solis, as co-chair of the White House Council on Auto Communities and Workers.

"This settlement holds accountable those responsible for contaminating certain properties and ensures they help transform these communities by supporting the necessary cleanup," said Acting Deputy Attorney General Grindler. "The agreement marks a new beginning by responsibly addressing hazardous waste contamination in impacted communities, and at the same time creates jobs to help clean up and return these sites to beneficial uses. It also shows how the federal government can work successfully in concert with states and tribes to resolve environmental legacy issues in their communities."

"We’re happy to have a path forward that addresses the needs of former auto communities. This trust − the largest environmental trust in our history − provides support for aggressive environmental cleanups at these sites, which will create jobs today and benefit the environment and human health over the long-term," said Administrator Jackson.

Under the terms of the agreement, Old GM will pay approximately $641.4 million and will contribute additional non-cash assets (with an estimated value of $120 million) for the cleanup and administration of 89 properties and sites, 59 of which are known to have been contaminated with hazardous substances or waste. In addition, Old GM has spent approximately $11.5 million towards the cleanup of the properties with known contamination during the pendency of the bankruptcy proceeding. The funding provided under the settlement agreement, along with the properties that are currently owned by Old GM and certain other non-cash assets, will be placed in an environmental response bankruptcy trust to fund the cleanup and administration of the properties and their return to beneficial use.

More than half of the cleanup funds to be paid to the environmental response trust will be provided for the environmental remediation of sites in New York and Michigan. In New York, the General Motors-Central Foundry Division Superfund Site – aka Massena – in Saint Lawrence County, will receive approximately $120.8 million in dedicated cleanup funds. The United States alleged in bankruptcy filings that Old GM operated an aluminum diecasting plant on the Massena property from 1959 to 2009, and that Old GM disposed of hazardous substances including polycholorinated biphenyls (also known as PCBs) at the property. The Saint Regis Mohawk Tribe, whose lands are affected by the contamination emanating from the Massena property, is also a party to the settlement. In Michigan, which will have the largest number of properties in the trust, approximately $160 million is allocated to the cleanup of 36 properties containing hazardous wastes or other hazardous substances.

In June 2009, Old GM – then the second-largest automotive manufacturer in the world – and three wholly-owned subsidiaries filed Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of New York. The same day it filed for bankruptcy, Old GM also filed a motion to sell substantially all of its assets to a newly formed corporation, now known as General Motors Company (New GM), which was approved by the bankruptcy court in July 2009. The 89 properties at issue in today’s settlement agreement were excluded from the sale of assets to New GM and continued to be owned and managed by Old GM.

In June and July 2009, in order to ensure, among other things, the orderly winding down of Old GM’s affairs in the bankruptcy proceeding, the Treasury Department and Export Development Canada (EDC), Canada’s export credit agency, collectively lent Old GM $1.175 billion. In October 2009, two additional wholly-owned subsidiaries of Old GM, which are a part of this settlement, filed their own Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of New York. These petitions are jointly administered with Old GM’s previously filed petitions by the bankruptcy court.

In October 2009 and April 2010, the United States filed proofs of claim against Old GM and its affiliated debtors to recover, among other things, past and future environmental cleanup costs for sites owned or operated by Old GM and its affiliated debtors, or where Old GM and its affiliated debtors had disposed of hazardous wastes. Similarly, several states filed proofs of claim against Old GM for environmental liabilities at properties and sites located across the country. This settlement addresses Old GM’s environmental liabilities under CERCLA, RCRA and state environmental laws at the 89 properties still owned by Old GM in Delaware, Illinois, Indiana, Kansas, Louisiana, Massachusetts, Michigan, Missouri, New Jersey, New York, Ohio, Pennsylvania, Virginia and Wisconsin. Under the settlement, an environmental response bankruptcy trust will be established to take ownership and possession of the 89 properties and the funding provided to clean the properties up, administer them and return them to beneficial use.

Old GM will pay approximately $499 million of the funding provided by the Treasury Department and EDC to the environmental response trust for environmental cleanup at the properties. Of this amount, more than $431 million will be placed in site-specific accounts for each of the 59 properties known to have been contaminated with hazardous substances or waste, and approximately $68 million will be placed in a pooled account for environmental cleanup that may arise in the future at any of the 89 properties transferred to the trust on account of unforeseen conditions. In addition, Old GM will place at least $142 million of the funding provided by the Treasury Department and EDC and certain non-cash assets in the trust to cover the administrative costs of the trust and the return of the properties to beneficial use.

The number of properties and approximate funding specifically allocated by state are: 1) $11.7 million for a property in Delaware that has already been sold but for which the trust retains cleanup obligations; 2) $5.3 million for a property in Illinois; 3) $25 million for eight properties in Indiana; 4) $4.8 million for two properties in Kansas; 5) a property in Louisiana with no known cleanup costs; 6) $2.3 million for a property and associated site located in Massachusetts; 7) $159 million for 57 properties in Michigan; 8) $1.7 million for two properties in Missouri; 9) $24.7 million for two properties in New Jersey; 10) $154 million for four properties and an associated site located in New York; 11) $39.4 million for eight properties in Ohio; 12) $3.3 million for a property in Pennsylvania; 13) $26,000 for a property in Virginia; and 14) $211,000 for a property in Wisconsin. Additional financing for environmental remediation from the $68 million in unallocated cleanup funding will be available to all of 89 properties and sites placed in the trust upon meeting certain requirements.

Before being considered by the bankruptcy court for approval, the settlement agreement will be lodged with the bankruptcy court for a period of 30 days to provide public notice and to afford members of the public the opportunity to comment on the settlement.

This settlement affects only the specified 89 properties and sites. It does not affect the proofs of claim filed against Old GM by the United States and various states for sites other than the 89 properties and sites at issue. Nor does it affect the general unsecured claims held by the United States against Old GM for past costs and natural resource damages relating to the properties that are being placed in the trust.

Alan S. Tenenbaum and Patrick Casey of the Environment and Natural Resources Division of the Department of Justice, along with Southern District of New York Assistant U.S. Attorneys David S. Jones, Natalie N. Kuehler, Joseph N. Cordaro and Jaimie L. Nawaday, are in charge of this case. 

WASHINGTON – El Departamento de Justicia anunció hoy que Vincent Johnson de Brick, N.J., quien usaba el pseudónimo de "Devilfish" en el Internet, se declaró culpable en el tribunal federal en Trenton, N.J., de múltiples cargos asociados a una serie de comunicaciones amenazadoras que envió e empleados de cinco organizaciones de derechos civiles que trabajan en mejorar las oportunidades para, y luchar contra la discriminación de, Hispanos en los Estados Unidos.

Durante el proceso de declaración de culpabilidad y en los documentos presentados en el tribunal, Johnson admitió que de noviembre de 2006 a febrero de 2009, envió en repetidas oportunidades comunicaciones de correo electrónico amenazadoras a empleados del Fondo de Defensa Legal y Educación Puertorriqueño LatinoJustice; el Fondo de Defensa Legal y Educación Mexicano; el Consejo Nacional de la Raza; la Liga de Ciudadanos Latinoamericanos Unidos y la Coalición Nacional del Clero Latino y Líderes Cristianos.

Ejemplos de los mensajes amenazadores de Johnson incluyen: "¿Tienes un último deseo y testamento? Si no, es mejor que consigas uno pronto". "Te estoy dando una advertencia justa de que tu presencia y posición están siendo rastreadas... eres hombre muerto... junto con cualquier otra persona de tu organización", "Mi preferencia sería comprar más municiones para tratar del caos creciente creado por grupos pro-extranjeros ilegales. RIP [nombres de las víctimas] quienes no son amigos de nuestra democracia"; y "después de leer el artículo a continuación, ¿puede darme aunque sea una buena razón por la cual alguien no debería poner una bala entre sus ojos por sus acciones que están promoviendo la anarquía en este país?" Johnson admitió que la intención de sus amenazas era intimidar a las víctimas a fin de evitar que ayudaran a personas descendientes de Hispanos.

"No se tolerarán en este país amenazas de violencia alimentada por el odio debido al color de la piel de una persona, el idioma que habla o el país del que proviene", dijo Thomas E. Pérez, Secretario de Justicia Auxiliar para la División de Derechos Civiles. "La condena del demandado debe transmitir un claro mensaje a otros que serían capaces de cometer actos delictivos similares de que serán llevados ante la justicia y responderán por sus acciones".

"Johnson admitió que envió mensajes de correo electrónico amenazadores a personas y grupos debido a quiénes eran y lo que creían", dijo Paul Fishman, Fiscal Federal para el Distrito de Nueva Jersey. "La violencia o amenazas de violencia con base en raza, religión, origen nacional, género u orientación sexual son una violación intolerable de nuestros derechos civiles más básicos. El ocultarse detrás del anonimato de una pantalla de computadora para realizar amenazas odiosas no los protegerá contra el enjuiciamiento".

"Uno no se puede ocultar detrás de la tecnología para amenazar a las personas", dijo Michael B. Ward, Agente Especial a Cargo de la División de Newark del FBI. "El FBI tiene un programa de derechos civiles muy activo y enérgico y tomamos muy en serio las amenazas contra las libertades civiles. El Sr. Johnson intentó intimidar a sus víctimas para hacerles sentir miedo de dedicarse a actividades protegidas por la Constitución de EE.UU. Cualquiera que sienta que ha sido victimizado de esta manera debe saber que el FBI está de su lado y que basta una llamada para comunicarse con nosotros".

Johnson se declaró culpable de cinco cargos de interferir en el ejercicio de los derechos civiles, cada uno de los cuales conlleva una sentencia máxima de 10 años en prisión y una multa de $250,000 dólares. Además, Johnson se ha declarado culpable de cinco cargos de transmitir una comunicación amenazadora en comercio interestatal, cada uno de los cuales conlleva una sentencia máxima de cinco años en prisión y una multa de $250,000 dólares.

La Juez de Distrito Anne E. Thompson programó la lectura de la sentencia de Johnson para el 26 de enero de 2011.

El caso fue investigado por las oficinas locales de Washington, DC, y Newark, NJ, del FBI. Están a cargo de la acusación en el caso el Abogado Litigante Benjamin J. Hawk de la División de Derechos Civiles del Departamento de Justicia y el Fiscal Federal Auxiliar Thomas Eicher de la Fiscalía Federal del Distrito de Nueva Jersey.

WASHINGTON – The Justice Department announced today that Vincent Johnson of Brick, N.J., who went by the internet pseudonym "Devilfish," pleaded guilty in federal court in Trenton, N.J., to multiple charges related to a series of threatening communications he sent to employees of five civil rights organizations that work to improve opportunities for, and challenge discrimination against, Latinos in the United States.

During the plea proceedings, and in documents filed in court, Johnson admitted that from November 2006 to February 2009, he repeatedly sent threatening email communications to employees of the LatinoJustice Puerto Rican Legal Defense and Education Fund; the Mexican American Legal Defense and Educational Fund; the National Council of La Raza; the League of United Latin American Citizens; and the National Coalition of Latino Clergy and Christian Leaders.

Examples of Johnson’s threatening language include: "Do you have a last will and testament? If not, better get one real soon."; "I am giving you fair warning that your presence and position is being tracked...you are dead meat...along with anyone else in your organization."; "My preference would be to buy more ammunition to deal with the growing chaos created by the pro-illegal alien groups. RIP [names of the victims] who are not the friends of our democracy."; and "After reading the article below can you give me simply one good reason why someone should not put a bullet between your eyes for your actions that are promoting lawlessness in this country?" Johnson admitted that his threats were intended to intimidate the victims in order to prevent them from aiding persons of Latino descent.

"Threats of hate-fueled violence because of the color of someone’s skin, the language they speak or the country from which they come, will not be tolerated in this country," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The defendant’s conviction should send a clear message to others who would carry out similar criminal acts that they will be brought to justice and held accountable for their actions."

"Johnson admitted that he sent threatening emails to individuals and groups because of who they are and what they believe," said Paul Fishman, U.S. Attorney for the District of New Jersey.  "Violence or threats of violence based on race, religion, national origin, gender, or sexual orientation are an intolerable violation of our most basic civil rights.  Hiding behind the perceived anonymity of a computer screen to make hateful threats will provide no protection from prosecution."

"You can not hide behind technology to threaten people," said Michael B. Ward, Special Agent in Charge of the FBI’s Newark Division.  "The FBI has a very robust and active civil rights violations program and we take threats to civil liberties very seriously.  Mr. Johnson attempted to intimidate his victims to make them fearful of engaging in activities protected by the U.S. Constitution.  Anyone who feels they have been victimized in this way should know the FBI is on their side and we are only a phone call away."

Johnson pleaded guilty to five counts of interfering with the exercise of civil rights, each of which carries a maximum penalty of 10 years in prison and a fine of $250,000. In addition, Johnson pleaded guilty to five counts of transmitting a threatening communication in interstate commerce, each of which carries a maximum penalty of five years in prison and a fine of $250,000.

District Court Judge Anne E. Thompson scheduled Johnson’s sentencing for Jan. 26, 2011.

The case was investigated by the Washington, D.C., and Newark, N.J., field offices of the FBI. The case is being prosecuted by Trial Attorney Benjamin J. Hawk of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Thomas Eicher of the U.S. Attorney’s Office for the District of New Jersey.

WASHINGTON - A former Pittsfield, Mass., man pleaded guilty today in federal court in Boston to his role in a series of frauds and attempts to avoid paying taxes over more than a decade, as well as lying to federal authorities and financial institutions about his illegal activities.

The guilty plea was announced by U.S. Attorney Carmen M. Ortiz for the District of Massachusetts; Assistant Attorney General Lanny A. Breuer of the Criminal Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) - Boston Field Office; Theodore L. Doherty III, Special Agent in Charge of the New England Regional Office of the U.S. Department of Transportation, Office of Inspector General; and Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Field Office.

Michael J. Armitage, 56, pleaded guilty today before U.S. District Court Judge Michael A. Ponsor to three counts of false statements to a federally insured financial institution; three counts of tax evasion; one count of false statements to a federal official; one count of conspiracy, one count of false claims; and one count of endeavoring to obstruct a federal audit.

According to information presented to the court, Armitage did not file a single personal federal income tax return between 1993 and 2006 in spite of receiving millions of dollars in income from sources such as Power Development Co. LLC (PDC), an energy company that Armitage founded and controlled. In addition, in 1999, Armitagewas required to repay more than $1 million to PDC for money that he had misappropriated, including approximately $340,000 in checks that he had written to himself but fraudulently mislabeled in PDC’s check register as payable to others. According to information presented at the plea hearing, from February 2001 to April 24, 2006, Armitage executed a scheme to defraud United Bank, located in West Springfield, Mass., in connection with three separate loans. Armitage used or submitted various false or fraudulent documents to perpetrate these fraud schemes, including a 2001 personal financial statement that omitted any debts owed to the IRS or to PDC and which claimed that his taxes were settled through 1999, and a 2001 personal federal income tax return that he signed and dated but never filed with the IRS.

In addition, between Aug 20, 2001, and Oct. 18, 2006, Armitage tried to avoid paying taxes that had been previously assessed for three separate years: 1995, 1996 and 1998. According to court documents, Armitage’s efforts to avoid paying taxes for these years included withholding material information from his tax representative; directing his tax representative to contact an IRS Revenue Officer and claim that delinquent returns would be filed, when he did not intend to provide the tax representative with the information to prepare the returns; making materially false statements to an IRS Revenue Officer; purposely withdrawing funds recently deposited in his bank account to maintain a low account balance; diverting payments due to himself to other accounts, including his wife’s bank account, the bank account of another company that he controlled, and an escrow account belonging to another person; and using funds froman account that he controlledto pay credit cards issued in his name, all to conceal income and avoid collection.

In another scheme, according to information presented to the court, from Nov. 30, 2004, through at least July 5, 2006, Armitage conspired with others to defraud the Federal Transportation Administration by submitting false, fraudulent and fictitious invoices for payment through the Pioneer Valley Transit Authority as part of a federal research grant into an electric bus and battery project. These invoices falsely claimed that the Federal Transportation Administration’s share of the project costs did not exceed the maximum 50 percent, as well as sought reimbursement for fictitious, inflated or ineligible expenses, and/or falsely claimed that certain milestone achievements warranted payment of claimed expenses. According to court documents, Armitage and others received $703,097 to which they were not entitled, and they used this money for their own benefit as well as the benefit of another company that Armitage and a co-conspirator founded in Canada. After the Department of Transportation, Office of Inspector General commenced an audit in 2006, Armitage repeatedly lied to and attempted to obstruct the auditors.

Judge Ponsor scheduled sentencing for Apr. 7, 2011. Armitage faces a maximum penalty of 30 years in prison and a $1 million fine on each count of false statements to a federally insured financial institution. He faces a maximum fine of five years in prison and a $250,000 fine for each of the remaining counts to which he pleaded guilty.

The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of U.S. Attorney’s Springfield Branch Office, as well as Senior Litigation Counsel William M. Welch II and Trial Attorney Kevin Driscoll of the Criminal Division’s Public Integrity Section. The case is being investigated by IRS-CI, the DOT-OIG and the FBI, with assistance from the Defense Contract Audit Agency.

WASHINGTON – Zachary Adam Chesser, 20, del Condado de Fairfax, Va., se declaró culpable hoy ante el Juez Federal de Distrito Liam O'Grady de una acusación criminal de tres cargos que incluía cargos de comunicación de amenazas contra escritores del programa de televisión South Park, solicitar a jihadistas violentos que insensibilizaran a las fuerzas del orden público, e intentar proveer apoyo material a Al-Shabaab, una organización terrorista extranjera designada.

La declaración de culpabilidad fue anunciada por David Kris, Secretario de Justicia Auxiliar de la División de Seguridad Nacional; Neil H. MacBride, Fiscal Federal para el Distrito Este de Virginia; y John G. Perren, Director Auxiliar Interino a Cargo de la Oficina Local de Washington del Buró Federal de Investigaciones.

Chesser enfrenta una sentencia máxima de 30 años en prisión cuando sea sentenciado el 25 de febrero de 2011.

"El demandado intentó proveer apoyo material a una organización terrorista extranjera y utilizó el Internet para incitar a la violencia. Afortunadamente, su compromiso hacia la violencia fue superado por el trabajo dedicado de los agentes, fiscales y analistas que trabajaron sin descanso para el enjuiciamiento de este hombre", dijo el Secretario de Justicia Auxiliar David Kris. "La declaración de culpabilidad de hoy es el resultado directo de la asociación y cooperación entre la División de Seguridad Nacional, la Fiscalía Federal y el FBI".

"Zachary Chesser puso en grave peligro las vidas de personas inocentes que seguirán en peligro por muchos años más", dijo el Fiscal Federal MacBride. "Su solicitud de que extremistas asesinaran a ciudadanos estadounidenses también hizo que personas de todo el país tuvieran miedo de hablar - inclusive en chiste - por miedo a ser catalogados como enemigos que merecían morir. Al admitir su culpa hoy, el Sr. Chesser nos recordó el grave peligro que los jihadistas nacionales representan para este país, y expreso mi gratitud y administración por los agentes del FBI que aprehendieron al Sr. Chesser antes de que pudiera poner a más ciudadanos estadounidenses en peligro.

"La principal prioridad del FBI es combatir ataques terroristas contra los Estados Unidos", dijo el Director Auxiliar Interino del FBI Charge Perren. "A través del uso de canales de comunicación de base amplia para amenazar, dañar e intimidar y luego incitar a otros a hacer lo mismo no será tolerado. El FBI trabaja en investigar a personas que hayan actuado basados en una filosofía radical y busquen perjudicar a ciudadanos estadounidenses".

De acuerdo con el expediente judicial presentado con este acuerdo de declaración de culpabilidad, Chesser mantenía varios perfiles en el Internet dedicados a la propaganda jihad extremista. Hoy, Chesser se declaró culpable de tomar pasos repetidos en abril de 2010 para alentar a jihadistas violentos a que atacaran a los escritores de South Park por su ilustración de Muhammad, incluidos destacando sus domicilios e instando a lectores en el Internet a que "los visitaran". Entre los pasos que tomó estuvo publicar, en múltiples ocasiones, discursos de Anwar Al-Awlaki, los cuales explicaban la justificación islámica por matar a quienes insulten o difamen a Muhammad. Al-Awlaki fue designado un "Terrorista Global Especialmente Designado" por los Estados Unidos, el 12 de julio de 2010.

Chesser también admitió que, en mayo de 2010, publicó en un portal del Internet jihadista la información de contacto personal de personas que se habían único al grupo "Día de dibujar a Muhammad" en Facebook, con la mención de que se trataba apenas "de un punto de inicio".

Chesser también se declaró culpable de solicitar a terceros que desensibilizaran a las fuerzas del orden público a través de la colocación de paquetes inocentes pero con aspecto sospechoso en lugares públicos. Chesser explicó en una publicación en el Internet que, una vez desensibilizadas las fuerzas del orden público, se podría utilizar un explosivo verdadero. Chesser encerró la publicación con las palabras, "¡Boom! No más kuffar". De acuerdo con el expediente judicial, "kuffar" significa no creedor o incrédulo.

De acuerdo con el expediente judicial, Chesser también admitió que, al menos, entre enero de 2010 y julio de 2010, publicó numerosos mensajes en el Internet que incluían llamadas de Al-Awlaki para unir a jihadistas violentos y acciones paso por paso que las personas necesitan llevar a cabo para el jihad. Estas publicaciones incluyeron un video hecho por Chesser con imágenes de mujahedeen en Somalia y una canción cantada por Chesser con el título traducido de "América, estamos llegando".

Chesser admitió que promovió en el Internet lo que llamo "Jihad de fuente abierta", donde dirigía a jihadistas a través de sus foros en línea a información en Internet que podrían utilizar para evitar la captura y la muerte sin dejar de mantener relevancia y capacidad significativa. Esto incluía enlaces al manual de filtración de seguridad entero utilizado por la Administración de Seguridad de Transportes y cientos de libros co información sobre la construcción de mísiles anti aeronave, y tácticas, técnicas y armas para atacar aeronaves tales como jets y helicópteros.

Además, Chesser se declaró culpable de intentar proveer apoyo material a Al-Shabaab. El 29 de febrero de 2008, el Departamento de Estado de EE.UU. designó a Al-Shabaab organización terrorista extranjera y la describió como un grupo extremista violento y brutal con sede en Somalia, con un número de individuos afiliados a Al-Qaeda. Esta designación prohíbe brindar apoyo material o recursos a Al-Shabaab.

De acuerdo con el expediente judicial, Chesser admitió que intentó dejar los Estados Unidos dos veces y viajar a Somalia para unirse a Al-Shabaab y dedicarse al jihad violento como combatiente extranjero. El primer intento fue en noviembre de 2009, viaje que se postergó porque su esposa no logró obtener su pasaporte. El segundo intento fue el 10 de julio de 2010, cuando buscó tomar un vuelo de Nueva York a Uganda con su bebé. No se le permitió subir a bordo del avión, y Chesser admitió que había llevado a su hijo como parte de su "encubierta" para evitar la detección de su intención de unirse a Al-Shabaab en Somalia. También intentó subir a bordo del avión con una cámara de video, admitiendo en el tribunal que intentaba utilizarla para crear videos de calidad de producción para la campaña propagandista de al-Shabaab.

Chesser también admitió hoy en el tribunal que publicó varios mensajes en el Internet en apoyo a Al-Shabaab, incluidos videos de ataques por Al-Shabaab contra un edificio gubernamental en Mogadishu, un video que alega que tropas de la Unión Africana son responsables por matar a civiles en Somalia, un video en apoyo a la fusión de Al-Shabaab con otra organización, y enlaces a lo que Chesser describió como siendo el "Manual de Al Qaeda" que incluía instrucciones en apoyo al jihad violento.

El caso está siendo investigado por la Oficina Local de Washington del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)]. Están a cargo de la acusación en el caso los Fiscales Federales Gordon Kromberg y Thomas H. McQuillan de la Fiscalía Federal para el Distrito Este de Virginia y el Abogado Litigante John T. Gibbs de la Sección de Contraterrorismo de la División de Seguridad Nacional.

WASHINGTON – California-based companies Quicksort Inc., Quicksort LA Inc. and Quicksort Sacramento Inc. have agreed to pay the United States $4.2 million to settle allegations that Quicksort violated the False Claims Act by falsely representing the level to which it had pre-sorted mailings in order to obtain discounted postage rates from the U.S. Postal Service, the Justice Department announced today.

The U.S. Postal Service offers lower postage rates to mailers who automate and sort their mail by zip code because these steps save the Postal Service time and money. Mailers use the services of businesses such as Quicksort that combine the mail of many customers and pre-sort it in order to qualify for the pre-sort discounts. After processing customers' mail, these pre-sort businesses present the mail to the Postal Service for mailing.

The settlement resolves allegations that the Quicksort companies misrepresented the pre-sort level of mail they submitted to the U.S. Postal Service at various times in 2008, 2009 and 2010.

"Making false claims to obtain discounted postage rates is dishonest, and such conduct interferes with the Postal Service’s effort to swiftly and accurately deliver the mail," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "We will hold businesses accountable for underpaying for postage and will ensure that taxpayer funds are protected from fraud and abuse."

"The Postal Service enters into mailing agreements with entities such as QuickSort to help ensure the US mail is collected, prepared, and delivered as cost effectively and efficiently as possible," said Benjamin B. Wagner, U.S. Attorney for the Eastern District of California. "When a pre-sort business overstates the level of presorting it has performed, the Postal Service not only pays for services not rendered, but then also has to incur the costs of sorting the mail to its proper ZIP Code. The False Claims Act provides a powerful remedy when this activity occurs."

"The Postal Inspection Service investigates these types of cases to not only protect the Postal Service but also protect the mailing community from those who seek to gain an unfair competitive advantage," stated Postal Inspector-in-Charge Adam P. Behnen.

The settlement was reached by the Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Eastern District of California. The U.S. Postal Inspection Service investigated the matter.

WASHINGTON – Rodney K. Justin, a medical doctor from Woodleaf, N.C., was sentenced to three years in prison and ordered to pay over $600,000 in restitution to the Internal Revenue Service (IRS) for obstructing the internal revenue laws and for failing to file tax returns for several years, the Justice Department and IRS announced today. The sentence was imposed by Chief Judge James A. Beaty Jr. in Winston-Salem, N.C.

In 2009, a federal jury convicted Justin of four felony counts of corruptly obstructing the administration of the internal revenue laws by sending fake financial instruments called "Bills of Exchange" to the Secretary of the Treasury in Washington, D.C., in purported payment of over $350,000 in taxes. The jury also convicted Justin of willful failure to file tax returns for the tax years 2001 through 2004.

According to the indictment and evidence presented at trial, Justin had not filed a valid tax return since 1997. However, Justin earned in excess of $200,000 each year from 2001 through 2004. Justin sent letters and bogus returns to the IRS advancing false and frivolous tax defier claims purporting to set forth reasons why he was not required to pay taxes. The IRS repeatedly warned Justin that his positions were frivolous and advised him of his legal duty to file returns and pay taxes.

According to the indictment and evidence presented at trial, from 1998 through early 2004, Justin was a client at Guiding Light of God Ministries, also known as American Rights Litigators (ARL), formerly of Mount Dora, Fla. The evidence showed that Justin purchased the four fictitious "Bills of Exchange" he submitted in purported payment of income taxes from ARL.

Acting Assistant Attorney General John A. DiCicco of the Justice Department’s Tax Division commended the IRS special agents who investigated the case, as well as Assistant U.S.

Attorney Frank Chut of the U.S. Attorney’s Office for the Middle District of North Carolina and Tax Division Trial Attorney Jeffrey McLellan, who prosecuted the case.

In August 2004, a federal district judge permanently enjoined ARL and two of its promoters from the sale of a nationwide tax scam. In April 2008, a federal court in Florida sentenced two promoters of ARL, as well as ARL client Wesley Snipes, to prison for tax offenses. In August of 2010, three promoters of ARL were sentenced in the District of Columbia to ten years’ imprisonment each along with ARL founder Eddie Ray Kahn, who received a twenty-year sentence.

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

WASHINGTON — Hosam Maher Husein Smadi was sentenced today by U.S. District Court Judge Barbara M. G. Lynn to 24 years in prison for his attempted bombing of a downtown Dallas skyscraper in September 2009, announced David Kris, Assistant Attorney General for the National Security Division; U.S. Attorney James T. Jacks of the Northern District of Texas; and Robert E. Casey Jr., Special Agent in Charge of the FBI’s Dallas Field Division. Smadi, 20, pleaded guilty on May 26, 2010, to one count of attempted use of a weapon of mass destruction.

"The court’s sentence of Mr. Smadi sends a clear message that there is a serious price to be paid by those who may be willing to carry out acts of violence in this country to further the terrorist cause.  I applaud the many agents, analysts and prosecutors responsible for this successful investigation and prosecution," said Assistant Attorney General Kris.

"I commend the FBI, the lawyers and support staff in the U.S. Attorney’s Office, and the Counterterrorism Section at the Department of Justice for their excellent work in investigating and prosecuting this case.  The security of the American people is the highest priority of the Department of Justice.  Through the professionalism and hard work of many individuals, they were able to locate, identify and neutralize the threat presented by this individual.  This case is an illustration of the diligence and hard work that is performed every day by men and women dedicated to the safety and security of this country," said U.S. Attorney Jacks.

"Today’s sentencing reflects our commitment to protect the community through the FBI’s counterterrorism strategy to detect, penetrate and disrupt acts of terrorism in the United States and to identify and fully investigate those individuals who choose to disregard the laws of this country and threaten the country’s security to advance a violent extremist ideology.  Much effort and many resources, from not only the FBI but other law enforcement agencies, were expended in investigating, tracking and ultimately arresting Hosam Maher Husein Smadi while at all times ensuring the public’s safety," said Special Agent In Charge Robert E. Casey Jr.

According to documents filed, on Sept. 24, 2009, Smadi knowingly took possession of a truck that contained a weapon of mass destruction, specifically a destructive device or bomb. The truck with the bomb inside was a vehicle borne improvised explosive device. Smadi believed that this was an active weapon of mass destruction, and while it was inert when Smadi took possession of it, it was a readily-convertible weapon of mass destruction.

Also according to documents filed, Smadi knowingly drove the truck containing the bomb to Fountain Place, a 60-story public office building located at 1445 Ross Avenue in Dallas, and parked it in the public parking garage under the building. After parking the truck, Smadi activated a timer connected to the device, locked the truck and walked away. Smadi walked out of the parking garage, crossed the street and got into a car with an undercover law enforcement agent. They drove a safe distance away and prepared to watch the explosion. Smadi, who believed the bomb would explode and cause extensive damage, used a cell phone to remotely activate the device.

 The case was investigated by the FBI in conjunction with members of the FBI-sponsored North Texas Joint Terrorism Task Force. Assistant U.S. Attorney Dayle Elieson and Deputy Criminal Chief Assistant U.S. Attorney Jerri Sims prosecuted the case.

 

 

WASHINGTON – The Justice Department today announced that it has reached a settlement agreement with Catholic Healthcare West (CHW) to resolve allegations that CHW engaged in a pattern or practice of citizenship status discrimination by imposing unnecessary and discriminatory hurdles to employment for work-authorized individuals. CHW is the eighth largest hospital provider in the nation, operating facilities in California, Nevada and Arizona.

According to the department’s findings, CHW required non-U.S. citizen and naturalized U.S. citizen new hires to present more work authorization documents than required by federal law, but permitted native born U.S. citizens to provide documents of their own choosing. The Immigration and Nationality Act (INA) prohibits employers from imposing different or greater employment-eligibility verification (I-9) standards on the basis of a worker’s citizenship status.

Under the terms of the settlement, CHW has agreed to pay $257,000 in civil penalties –the largest amount of civil penalties ever paid to resolve such allegations – and $1,000 in back pay to the charging party. CHW has also agreed to review its past I-9 practices at all of its 41 facilities in order to identify and compensate any additional victims of over-documentation who have lost wages as a result, and to devise and implement policies and procedures for ensuring best practices with regard to hiring and employment eligibility verification. Further, CHW has agreed to train its recruitment personnel on their responsibilities not to discriminate and provide periodic reports to the department for three years.

"All workers who are authorized to work in the United States have the right to look for a job without encountering discrimination because of their immigration status or national origin," said Thomas E. Perez, Assistant Attorney General for the Justice Department’s Civil Rights Division. "We are pleased to have reached a settlement with CHW and look forward to continuing to work with public and private employers to educate them about anti-discrimination protections and employer obligations under the law."

The Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA, which protects work authorized individuals against discrimination in hiring, firing, and recruitment or referral for a fee on the basis of citizenship status and national origin. The INA also protects all work-authorized individuals from discrimination in the employment-eligibility verification process and from retaliation.

 

For more information about protections against employment discrimination under the immigration laws, call 1-800-255-7688 (OSC’s worker hotline) (1-800-237-2525, TDD for hearing impaired), 1-800-255-8255 (OSC’s employer hotline) (1-800-362-2735, TDD for hearing impaired), or 202-616-5594; email [email protected] ; or visit OSC’s website at www.justice.gov/crt/osc.

WASHINGTON - The Justice Department today announced that it has entered into a comprehensive settlement agreement that will transform the state of Georgia’s mental health and developmental disability system and resolve a lawsuit the United States brought against the state. The lawsuit alleged unlawful segregation of individuals with mental illness and developmental disabilities in the state’s psychiatric hospitals in violation of the Americans with Disabilities Act (ADA) and the Supreme Court’s landmark decision in Olmstead v. L.C.

The U.S. District Court for the Northern District of Georgia will retain jurisdiction to enforce today’s settlement agreement, which supersedes a 2008 agreement between the state and the Office for Civil Rights of the U.S. Department of Health and Human Services (HHS) concerning Georgia’s provision of community services for individuals with mental illness and developmental disabilities. In light of today’s agreement and the progress the state has made in complying with an earlier agreement regarding the conditions in the psychiatric hospitals, the United States has agreed to withdraw its motions to enforce that earlier agreement.

More than a decade ago, in Olmstead v. L.C., the Supreme Court found that one of Georgia’s state hospitals was impermissibly segregating two individuals with disabilities in that hospital when they could have been served in more integrated settings. The Supreme Court ordered states to serve individuals with disabilities in the most integrated settings appropriate to their needs.

"The Olmstead decision strongly affirmed that people with disabilities have a right to live and receive services in the most integrated setting appropriate for them as individuals," said Thomas E. Perez, Assistant Attorney General for Civil Rights. "Under this agreement, the state of Georgia will provide services in the community to hundreds of people with developmental disabilities and thousands of people with mental illness. The promises of the ADA and Olmstead will finally become a reality for individuals in Georgia with mental illness and developmental disabilities."

"Georgia is the home of the Supreme Court’s Olmstead decision," said Sally Quillian Yates, U.S. Attorney for the Northern District of Georgia. "With this agreement, the state begins to make good on Olmstead’s promise to end the inappropriate segregation of people with disabilities in state hospitals that set apart from the community."

"The expansion of community living opportunities is critical to protecting the civil rights of individuals with disabilities under Olmstead, said Georgina Verdugo, Director of the Office for Civil Rights at HHS.  "The specific requirements and timelines in this agreement will ensure that Georgians with mental illness and developmental disabilities have the services they need to live full lives in the community and achieve their goals."

The Justice Department began its investigation in 2007, and found that preventable deaths, suicides and assaults occurred with alarming frequency in the state hospitals. In January 2009, the department entered into a settlement agreement with the state of Georgia regarding conditions in the hospitals. Further investigation found that the state also failed to serve individuals with mental illness and developmental disabilities in the most integrated setting appropriate to their needs, in violation of the ADA and the Olmstead decision. In January 2010, the department filed a freestanding complaint under the ADA and a motion for immediate relief seeking to protect individuals confined in the hospitals from continued segregation and from threats of harm to their lives, health and safety. The department subsequently entered into extensive settlement negotiations with Georgia, the Office for Civil Rights and local mental health advocates.

The agreement signed today resolves the ADA lawsuit. The agreement expands community mental health services so that Georgia can serve individuals with mental illness and developmental disabilities in the most integrated setting appropriate to those individuals’ needs. Under today’s agreement, over the next five years, Georgia will increase its assertive community treatment, intensive case management, case management, supported housing and supported employment programs to serve 9,000 individuals with mental illness in community settings. The agreement will also increase community crisis services to respond to and serve individuals in a mental health crisis without admission to a state hospital, including crisis services centers, crisis stabilization programs, mobile crisis and crisis apartments; create at least 1,000 Medicaid waivers to transition all individuals with developmental disabilities from the state hospitals to community settings; and increase crisis, respite, family and housing support services to serve individuals with developmental disabilities in community settings.

The Civil Rights Division enforces the ADA which authorizes the attorney general to investigate whether a state is serving individuals in the most integrated settings appropriate to their needs. Please visit www.justice.gov/crt to learn more about the Olmstead decision, the ADA and other laws enforced by the Justice Department’s Civil Rights Division.

The agreements in this case protecting the rights of individuals with mental illness and developmental disabilities in Georgia are due to the efforts of the following Special Litigation Section attorneys: Judy Preston, Acting Chief; Mary Bohan, Deputy Chief; Timothy Mygatt, Special Counsel; Robert Koch, Max Lapertosa, Richard Farano, Aaron Fleisher, Jeffrey Murray, Jennifer Mondino, David Deutsch, Emily Gunston, Samantha Trepel, and Amin Aminfar, Trial Attorneys. In addition, the division received support and assistance from Aileen Bell-Hughes and Mina Rhee, Assistant U.S. Attorneys for the Northern District of Georgia.

WASHINGTON — Hosam Maher Husein Smadi fue sentenciado hoy por la Jueza Federal de Distrito Bàrbara M. G. Lynn a 24 años de prisión por su intento de activar una bomba para derribar un rascacielos del centro de Dallas en septiembre de 2009, anunciaron David Kris, Fiscal Federal Auxiliar de la División de Seguridad Nacional; el Fiscal Federal James T. Jacks del Distrito Norte de Texas; y Robert E. Casey Jr., Agente Especial a Cargo de la División Local de Dallas del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)]. Smadi, 20, se declaró culpable el 26 de mayo de 2010 de un cargo de intento de uso de un arma de destrucción masiva.

"La sentencia del Sr. Smadi por parte del tribunal deja en claro que quienes puedan estar dispuestos a realizar actos de violencia en este país para promover la causa terrorista pagarán un precio muy alto. Felicito a los numerosos agentes, analistas y fiscales responsables de esta exitosa investigación y acusación", dijo el Secretario de Justicia Auxiliar Kris.

"Felicito al FBI, los abogados y el personal de apoyo de la Fiscalía Federal, y la Sección de Contraterrorismo del Departamento de Justicia por su excelente labor de investigación y acusación de este caso. La seguridad del pueblo estadounidense es la mayor prioridad del Departamento de Justicia. Gracias al profesionalismo y el arduo trabajo de muchas personas, pudieron ubicar, identificar y neutralizar la amenaza representada por este individuo. Este caso es un ejemplo de la diligencia y el arduo trabajo diario de hombres y mujeres dedicados a la seguridad de este país", dijo el Fiscal Federal Jacks.

"La sentencia de hoy refleja nuestro compromiso de proteger a la comunidad a través de la estrategia de contraterrorismo del FBI para detectar, penetrar y evitar actos de terrorismo en los Estados Unidos y para identificar e investigar exhaustivamente a las personas que elijen ignorar las leyes y amenazar la seguridad de este país para promover una ideología extremista violenta. No solo del FBI, sino también otras agencias de las fuerzas del orden público, hicieron un gran esfuerzo y emplearon muchos recursos para investigar, rastrear y arrestar a Hosam Maher Husein Smadi garantizando en todo momento la seguridad pública", dijo el Agente Especial a Cargo Robert E. Casey Jr.

Según documentos presentados el 24 de septiembre de 2009, Smadi tomó posesión de un camión que contenía un arma de destrucción masiva, específicamente un dispositivo destructivo o bomba, con total conciencia de la existencia del arma. El camión con la bomba en su interior era un dispositivo explosivo vehicular improvisado. Smadi creía que era un arma de destrucción masiva activa y, si bien estaba inerte cuando Smadi tomó posesión de la misma, era un arma de destrucción masiva fácil de convertir.

Además, según los documentos presentados, Smadi condujo a sabiendas el vehículo que contenía la bomba hasta Fountain Place, un edificio de oficinas públicas de 60 pisos ubicado en 1445 Rose Avenue en Dallas y lo estacionó en el garaje público debajo del edificio. Después de estacionar el camión, Smadi activó un temporizador conectado al dispositivo, trabó el camión y se alejó caminando. Smadi salió del estacionamiento, cruzó la calle y entró a un automóvil con un agente encubierto de las fuerzas de orden público. Se alejaron hasta una distancia segura y se prepararon para ver la explosión. Smadi, que creía que la bomba explotaría y provocará grandes daños, usó un celular para activar remotamente el dispositivo.

El caso fue investigado por el FBI junto con miembros de la Fuerza de Tarea Conjunta contra el Terrorismo del Norte de Texas, patrocinada por el FBI. Estuvieron a cargo de la acusación en el caso el Fiscal Federal Dayle Elieson y el Fiscal Federal Auxiliar Principal Adjunto Criminal Jerri Sims.

WASHINGTON – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Catholic Healthcare West (CHW) para resolver alegatos de que CHW exhibió un patrón o práctica de discriminación al imponer dificultades innecesarias y discriminatorias para la obtención de empleos a personas autorizadas a trabajar. CHW es el octavo proveedor hospitalario del país, con establecimientos en California, Nevada y Arizona.

Según los hallazgos del Departamento, CHW exigía que los nuevos contratados que no eran ciudadanos estadounidenses o eran ciudadanos estadounidenses naturalizados presentaran más documentos de autorización para el empleo que los exigidos por las leyes federales, pero permitía que ciudadanos estadounidenses nacidos en el país presentaran documentos a su discreción. La Ley de Inmigración y Nacionalidad [Immigration and Nationality Act (INA)] prohíbe que los empleadores impongan estándares diferentes o mayores de verificación de elegibilidad para el empleo (I-9) basándose en el estado de ciudadanía del trabajador.

Bajo los términos del acuerdo conciliatorio, CHW ha aceptado pagar $257,000 dólares en multas criminales – el mayor monto de multas criminales pagado para resolver este tipo de alegatos – y $1,000 dólares en pagos retroactivos a la parte demandante. CHW también ha aceptado revisar sus prácticas I-9 pasadas en todas sus 41 instalaciones para identificar y compensar a cualquier otra víctima de la práctica de presentación de documentación innecesaria que haya perdido ingresos como resultado, y crear e implementar políticas y procedimientos para garantizar mejores prácticas respecto de la contratación y la verificación de elegibilidad laboral. Además, CHW ha aceptado capacitar a su personal de reclutamiento sobre sus responsabilidades de no discriminar y entregar informes periódicos al Departamento durante tres años.

"Todos los trabajadores autorizados a trabajar en los Estados Unidos tienen derecho a buscar trabajo sin sufrir discriminación por su estado inmigratorio u origen nacional", dijo Thomas E. Pérez, Secretario de Justicia Auxiliar de la División de Derechos Civiles del Departamento de Justicia. "Nos complace haber llegado a un acuerdo conciliatorio con CHW y esperamos seguir trabajando con empleadores públicos y privados para educarlos sobre protecciones contra la discriminación y las obligaciones legales de los empleadores".

La Oficina de Asesoramiento Especial para Prácticas de Empleo Injustas Asociadas a la Inmigración [Immigration Related Unfair Employment Practices (OSC)] de la División de Derechos Civiles es responsable de hacer valer la disposición contra la discriminación de la INA, que protege a los ciudadanos autorizados a trabajar contra la discriminación en la contratación, el despido y el reclutamiento o referido a cambio del pago de una tarifa en base a su estado de ciudadanía o su origen nacional. La INA también protege a todas las personas autorizadas a trabajar contra la discriminación en el proceso de verificación de elegibilidad para el empleo y la toma de represalias.

Para obtener más información sobre protecciones contra la discriminación en el empleo bajo las leyes de inmigración, llame al (800) 255-7688 (línea directa para trabajadores de la OSC) (800) 237-2525, TDD para personas con problemas auditivos), (800) 255-8255 (línea directa para empleadores de la OSC) (800) 362-2735, TDD para personas con problemas auditivos), o al (202) 616-5594. Escriba un correo electrónico a [email protected] ; o visite el portal de la OSC en www.justice.gov/crt/osc.

WASHINGTON –Attorney General Eric Holder and Department of Agriculture (USDA) Secretary Tom Vilsack today announced the settlement of a class action lawsuit filed against USDA by Native American farmers alleging discrimination by USDA. The settlement ends litigation concerning discrimination complaints from Native Americans generally covering the period 1981-1999.

"The settlement announced today will allow USDA and the Native American farmers involved in the lawsuit to move forward and focus on the future," said Attorney General Holder.  "Under the process established in this agreement, Native American farmers who believe they suffered discrimination will have their claims heard.  The Department of Justice is proud to partner with USDA in the agency’s effort to ensure fair and equitable treatment of its clients."

"Today’s settlement can never undo wrongs that Native Americans may have experienced in past decades, but combined with the actions we at USDA are taking to address such wrongs, the settlement will provide some measure of relief to those alleging discrimination," Secretary Vilsack said. "The Obama Administration is committed to closing the chapter on an unfortunate civil rights history at USDA and working to ensure our customers and employees are treated justly and equally."

Under the settlement agreement, $680 million will be made available to eligible class members to compensate them for their discrimination claims. Two payment "tracks" are available. Under the first track, persons who meet the class definition and provide substantial evidence of discrimination to an impartial adjudicator will receive a uniform settlement of up to $50,000. The second track is for those persons who meet the class definition and believe they have stronger evidence of economic losses caused by discrimination. This track requires a higher evidentiary standard and damage awards are capped at a maximum of up to $250,000 per individual. Actual monetary awards are subject to reduction based on the amount of available funding and the number of meritorious claims.

The judgment fund maintained by the Departments of Justice and Treasury will fund any monetary awards provided under the settlement. USDA will provide up to $20 million to administer the settlement.

In addition to the monetary award, the agreement provides up to $80 million in debt forgiveness to successful claimants with outstanding USDA Farm Loan program debt. Also, a moratorium on foreclosures of most claimants’ farms and a moratorium on accelerations and administrative offsets of class members’ farm loan accounts will be put into place until after claimants have gone through the claims process or the Secretary of Agriculture has been notified that a claim has been denied.

The settlement also provides a broad range of programmatic relief for Native American farmers, including creation of a new Federal Advisory Council for Native American farmers and ranchers that will include Native American representation from around the country as well as senior USDA officials. Meanwhile, a new ombudsman position will be created to address farm program issues relating to Native American farmers and ranchers as well as all other socially disadvantaged farmers and ranchers. The department will also offer Native American farmers enhanced technical assistance services through the establishment of a network that provides intensive instruction to recipients concerning financial, business and market planning skills and supports the deployment of tribal agriculture advocates and third party outreach and education providers.

This lawsuit, Marilyn Keepseagle et al., v. Vilsack (Civil Action No. 99-3119 (D.D.C.)), was filed on Nov. 24, 1999. The settlement will not become final until it is formally approved by the U.S. District Court for the District of Columbia.

WASHINGTON – The Justice Department’s Civil Rights Division today filed an amicus brief in support of a mosque in Murfreesboro, Tenn., that has met with community opposition and a lawsuit.

 

The brief was filed in a state court action in which a group of Murfreesboro landowners are attempting to stop construction of the mosque. Rutherford County, Tenn., is the defendant in the civil case, and had granted permission for the construction of the mosque. The county is opposing the landowners’ attempt to stop construction.

 

The department’s brief argues that Islam is a religion entitled to protection under the First Amendment to the U.S. Constitution, and points out that, “consistent among all three branches of government, the United States has recognized Islam as a major world religion.” It also argues that mosques are places of religious worship, and that Rutherford County properly determined that it must treat the mosque project as it would other proposals for construction of places of worship.

 

“A mosque is quite plainly a place of worship, and the county rightly recognized that it had an obligation to treat mosques the same as churches, synagogue, or any other religious assemblies.  This is not only common sense; it is required by federal law.  The Justice Department is committed to protecting rights of Americans of all faiths to build places of worship and to worship in peace,” said Thomas E. Perez, Assistant Attorney General for Civil Rights.

 

“Although this is presently a local matter, the U. S. Department of Justice and the U.S. Attorney’s Office for the Middle District of Tennessee vigorously support the decision of the Rutherford County Regional Planning Commission and the Board of Commissioners in approving the site plans and authorizing construction of a mosque and Islamic center,” said U.S. Attorney Jerry E. Martin. “To suggest that Islam is not a religion is quite simply ridiculous.  Each branch of the federal government has independently recognized Islam as one of the major religions of the world.  As pointed out in our brief filed with the court, had the Rutherford County Government adopted the position the plaintiffs set forth, it would likely be in violation of the Religious Land Use and Institutionalized Persons Act, enacted by the U.S. Congress in 2000.”

 

The department’s brief comes shortly after the celebration of the 10th anniversary of the Religious Land Use or Institutionalized Persons act (RLUIPA) on Sept. 22, 2010. RLUIPA protects the rights of religious assemblies and institutions to be free from discrimination in the application of zoning and land-use laws. In the 10 years since its passage, RLUIPA has helped secure the ability of thousands of individuals and institutions to practice their faiths freely and without discrimination.

 

In the past 10 years, the department has opened 51 RLUIPA investigations, filed seven lawsuits under RLUIPA’s land-use provisions and participated in 40 privately filed lawsuits. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of discrimination can call the Discrimination Tip Line at 1-800-896-7743, or e-mail the Justice Department at [email protected].