District Not Recorded

WASHINGTON – Saehan Bank has agreed to pay the United States $2.2 million to settle allegations arising under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act with respect to a Small Business Administration (SBA) loan, the Justice Department announced today. The settlement resolves allegations that the California-headquartered bank misrepresented or withheld information to induce the SBA to fund a loan under the SBA’s 504 loan program, which offers small businesses long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization.

 

Before finalizing a 504 loan, the SBA requires certain certifications regarding the borrower’s financial condition and ability to repay the loan. The government alleges that Saehan Bank falsely certified that the borrowers had experienced no adverse change in their financial circumstances since their initial loan application, even though the bank knew that the borrowers were facing serious financial difficulties. Relying on these alleged misrepresentations, the SBA approved the borrowers’ 504 loan. In addition to resolving its counterclaims against Saehan Bank, the United States obtained a default judgment on its cross claims against the borrowers, who never made any payments on the loan.

 

“The SBA offers valuable assistance to small businesses and contributes to our nation’s economic development, and we must protect the integrity of its programs,” said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. “The Justice Department will hold accountable those who betray the SBA’s trust and waste taxpayer dollars.”

 

“This case represents the cooperative effort of SBA’s Office of General Counsel and the Department of Justice to uncover and remedy fraud in our lending programs,” said Sara D. Lipscomb, SBA General Counsel. “Uncovering and pursuing fraud cases is one of SBA’s highest priorities.”

 

“The size of this settlement should send a clear message to lenders and other participants in SBA lending programs that fraud and misleading statements will not be tolerated,” said Peggy E. Gustafson, Inspector General for the SBA.

 

The settlement announced today resulted from a collaborative effort by several federal agencies, including the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Northern District of Oklahoma, and the SBA.

WASHINGTON – Eleven individuals, including four current Alabama state legislators, three lobbyists, two business owners and one of their employees, and an employee of the Alabama legislature have been charged for their roles in a conspiracy to offer to and to bribe legislators for their votes and influence on proposed legislation, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and Assistant Director Kevin Perkins of the FBI’s Criminal Investigative Division.

The defendants are charged in an indictment returned by a grand jury on Oct. 1, 2010, in Montgomery, Ala., which was unsealed today. Various defendants are charged with a variety of criminal offenses, including conspiracy, federal program bribery, extortion, money laundering, honest services mail and wire fraud, obstruction of justice and making a false statement. They will make initial appearances today in U.S. District Court for the Middle District of Alabama before U.S. Magistrate Judge Terry F. Moorer.

"Today, charges were unsealed against 11 legislators, businessmen, lobbyists and associates who, together, are alleged to have formed a corrupt network whose aim was to buy and sell votes in the Alabama legislature in order to directly benefit the business interests of two defendants, Milton McGregor and Ronald Gilley," said Assistant Attorney General Lanny A. Breuer of the Criminal Division.  "The people of Alabama, like all our citizens, deserve to have representatives who act in the public’s interest, not for their own personal financial gain.  Vote-buying, like the kind alleged in this indictment, corrodes the public’s faith in our democratic institutions and cannot go unpunished."

"The allegations in today’s indictment underscore the commitment of the FBI, the Department of Justice, and the Alabama Bureau of Investigation to continue to pursue those in public office who undermine the public’s trust and engage in unethical and corrupt practices," said Assistant Director Kevin Perkins of the FBI’s Criminal Investigative Division.

According to the indictment, Milton E. McGregor owned a controlling interest in Macon County Greyhound Park Inc., also known as Victoryland, in Macon County, Ala., and Jefferson Country Racing Association in Jefferson County, Ala., as well as ownership interest in other entertainment and gambling facilities in Alabama that offered or sought to offer electronic bingo gambling machines to the public. Ronald E. Gilley owned a controlling interest in the Country Crossing real estate, entertainment and gambling development in Houston County, Ala., which also sought to offer electronic bingo gambling machines to the public.

During the 2009 and 2010 Alabama state legislative sessions, McGregor and Gilley, along with others, allegedly promoted the passage of pro-gambling legislation that would have been favorable to the business interest of individuals operating electronic bingo facilities, including themselves. From February 2009 through August 2010, McGregor, Gilley and their co-defendants allegedly conspired to commit federal program bribery by corruptly giving, offering and agreeing to give money and other things of value to Alabama state legislators and staff with the intent to influence and reward them in connection with pro-gambling legislation. The indictment alleges that Alabama state legislators, including co-defendants State Senator Larry P. Means, State Senator James E. Preuitt, State Senator Quinton T. Ross Jr., and Senator Harri Anne H. Smith corruptly solicited, demanded, accepted and agreed to accept money and things of value from their co-conspirators and others, intending to be influenced and rewarded in connection with pro-gambling legislation.

Specifically, the indictment alleges that Gilley, his primary lobbyist, Jarrod D. Massey, and State Senator Smith, sought to bribe a member of the Alabama House of Representatives during the 2009 legislative session, promising hundreds of thousands of dollars in campaign support in exchange for the legislator’s favorable vote on pro-gambling legislation. Similarly, in 2010, McGregor, Gilley and Massey allegedly sought to bribe a member of the Alabama Senate, offering the legislator $1 million, to use at the legislator’s discretion, funneled through a public relations job. According to the indictment, McGregor, along with lobbyist Robert B. Geddie Jr., also provided a $5,000 campaign contribution to a member of the Alabama House of Representatives in exchange for his vote on pro-gambling legislation during the 2010 legislative session.

The indictment also alleges that State Senator Means, who had abstained from an earlier vote on the pro-gambling legislation in 2010, solicited bribes from McGregor, Gilley, Massey and others, and, in one specific instance, sought $100,000 in return for voting in favor of the legislation. According to the indictment, McGregor, his lobbyist Thomas E. Coker, Gilley, Massey, Gilley’s employee Jarrell W. Walker Jr., and others allegedly bribed State Senator Preuitt, who had voted no in the earlier vote on the legislation, promising $2 million in campaign contributions and the use of country music stars in Preuitt’s reelection campaign, among other things of value in exchange for his vote in favor of the pro-gambling legislation. Gilley, Massey, Walker and others also allegedly discussed purchasing a large number of vehicles from Preuitt’s auto dealership in exchange for Preuitt’s vote.

State Senator Ross also is alleged to have solicited significant campaign contributions from McGregor, Gilley, Massey and others. According to the indictment, Ross allegedly pressured McGregor for campaign contributions the day before and the day of the vote on the pro-gambling legislation. In addition, State Senator Smith, who previously introduced an anti-gambling bill during the 2008 legislative session, voted in favor of the pro-gambling legislation in 2010 and allegedly lobbied other legislators to support the legislation in exchange for promises and payments of hundreds of thousands of dollars from Gilley and others. The indictment also alleges that Joseph R. Crosby, an employee of the Alabama Legislative Reference Service who received $3,000 per month from McGregor, took official action on behalf of McGregor, including making changes to the pro-gambling legislation that would benefit McGregor.

In a related case, Jennifer D. Pouncy, 34, of Montgomery, Ala., pleaded guilty on Sept. 28, 2010, before U.S. Magistrate Judge Charles S. Coody to one count of conspiracy for her role in the scheme. According to information stated during her plea hearing, Pouncy admitted that she offered State Senator Preuitt $2 million for his vote on the pro-gambling legislation, based on orders from Massey. Pouncy also admitted that Massey and Gilley authorized her to offer $100,000 to State Senator Means in return for his support for the pro-gambling legislation. Pouncy’s guilty plea was unsealed this morning, and a sentencing date has not been set.

The defendants named in the indictment unsealed today were charged with the following crimes:

• Milton E. McGregor, 71, of Montgomery, Ala., was charged with one count of conspiracy, six counts of federal program bribery, and 11 counts of honest services mail and wire fraud;
• Ronald E. Gilley, 45, of Enterprise, Ala., was charged with one count of conspiracy, six counts of federal program bribery, 11 counts of honest services mail and wire fraud, and four counts of money laundering;
• Jarrod D. Massey, 39, of Montgomery, Ala., was charged with one count of conspiracy, five counts of federal program bribery, and 11 counts of honest services mail and wire fraud;
• Thomas E. Coker, 70, of Lowndesboro, Ala., was charged with one count of conspiracy, two counts of federal program bribery, and 11 counts of honest services mail and wire fraud;
• Robert B. Geddie Jr., 60, of Montgomery, Ala., was charged with one count of conspiracy, one count of federal program bribery, 11 counts of honest services mail and wire fraud, and one count of obstruction of justice;
• Jarrell W. Walker Jr., 36, of Lanett, Ala., was charged with one count of conspiracy, one count of federal program bribery, and 11 counts of honest services mail and wire fraud;
• Harri Anne H. Smith, 48, of Slocomb, Ala., was charged with one count of conspiracy, two counts of federal program bribery, one count of extortion, 11 counts of honest services mail and wire fraud, and four counts of money laundering;
• Larry P. Means, 63, of Attalla, Ala., was charged with one count of conspiracy, two counts of federal program bribery, two counts of attempted extortion, and 11 counts of honest services mail and wire fraud;
• James E. Preuitt, 75, of Talladega, Ala., was charged with one count of conspiracy, one count of federal program bribery, one count of attempted extortion, 11 counts of honest services mail and wire fraud, and one count of making a false statement;
• Quinton T. Ross Jr., 41, of Montgomery, Ala., was charged with one count of conspiracy, two counts of federal program bribery, two counts of attempted extortion, and 11 counts of honest services mail and wire fraud; and
• Joseph R. Crosby, 61, of Montgomery, Ala., was charged with one count of conspiracy, one count of federal program bribery, and 11 counts of honest services mail and wire fraud.

The conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine. The federal program bribery charges carry a maximum penalty of 10 years in prison and a $250,000 fine. Each count of extortion, honest services mail and wire fraud, money laundering and obstruction of justice carries a maximum penalty of 20 years in prison and a $250,000 fine. The false statement charge carries a maximum penalty of five years in prison and a $250,000 fine. The indictment also contains a notice of forfeiture as to defendants Smith and Gilley.

An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty in a court of law.

The case is being prosecuted by Senior Deputy Chief Peter J. Ainsworth and Trial Attorneys Eric G. Olshan, Barak Cohen and E. Rae Woods of the Criminal Division’s Public Integrity Section; Senior Litigation Counsel Brenda K. Morris of the Criminal Division; and Assistant U.S. Attorneys Louis V. Franklin and Steve P. Feaga of the Middle District of Alabama. The case is being supervised by the Criminal Division’s Public Integrity Section, and is being investigated by the FBI’s Montgomery Field Office.

The court document is available here.

Thank you, Judge [Ricky] Roberts. I appreciate your kind words, and – because we’ve been friends for so many years – I’m especially grateful for the stories you left out. As always, it is good to be with you and to be among so many leaders I have long admired and continue to rely on. Yes, Judge [Ann] Williams, I am talking to you, in particular.

 

Let me also thank Paula Lucas and her team – as well as Judge [Patricia Brown] Holmes and the other members of the Board, Associate Board, and Advisory Committee – for inviting and welcoming me here.

 

It is a privilege to be part of this year’s conference and to join you all in discussing the responsibilities that we share – responsibilities to ourselves and our society; to our profession and our predecessors; and, of course, to America’s next generation of law students, attorneys, and jurists.

 

For nearly two decades, many of you have been coming together – through the Just the Beginning Foundation – to focus on these responsibilities, to find new ways to give back, and, above all, to help our country move forward. The training and educational programs you’ve developed have improved the strength and integrity of our entire legal system. And your efforts to honor the service of African Americans in the federal judiciary have helped to ensure that this tradition lives on.

 

Tonight, together, we have the chance to consider how we can take this work to a new level; and how we will reach back, lift up, and – ultimately – make certain that the progress and achievements we now celebrate continue and grow.

 

In “reaching back” into our history, I am reminded of a fact that was perhaps best – if most bluntly – expressed by Justice Thurgood Marshall. “None of us,” he once said, “got where we are solely by pulling ourselves up by our bootstraps.”

 

That’s right. None of us.

 

In addition to our shared values and vision, we all have one important thing in common. Each of us has walked through a doorway of possibility that the leaders and lawyers who came before us pried open. Today, we continue to move forward, guided by the examples of William Henry Hastie and Benjamin Hooks; of Charles Hamilton Houston, Judge Higginbotham, and Judge Parsons; of the many illustrious African-American jurists, attorneys, and academics who have inspired our nation – as well as the less famous, but no less influential, role models and mentors who have touched our own lives.

 

Growing up, one of my great blessings was being raised by parents and grandparents who encouraged me to dream big. Despite the struggles I regularly saw, and the challenges that often surrounded me on the streets of Queens – my family assured me that I could be, and could achieve, anything I desired. And while I had a great deal of support from my family, I had few examples of professional success. In fact, as I child, I only knew one lawyer.

But that one lawyer looked like me. He lived in my neighborhood. He talked with me about what he did. And he helped me to believe in what I could become. His single example, and the time he spent with me, made all the difference. It broadened the possibilities, and expectations, I held for myself. And it continues to remind me of why we must reach out to students and aspiring attorneys; why we must create opportunities for those who easily could be left out and left behind to contribute to the cause of justice and the work of the judiciary; and why we must make time for the conversations and personal interactions that just may inspire and pave the way for those who will follow us.

Of course, my career path was the result of more than just one person’s influence. I was also inspired by what I saw as the power of the law to change lives. During law school, I spent a summer interning at the N.A.A.C.P. Legal Defense Fund, where I had the chance to learn about, and even work on, some of the most important discrimination suits of the day. I saw how the efforts of dedicated attorneys can help to restore hope and rebuild dreams.

I wanted to become one of those lawyers. I wanted to be part of a profession that, since our nation’s earliest days, has taken up the challenge of achieving and administering justice. During and after law school, I was supported by several Department of Justice attorneys who served as my mentors. And, throughout this time, I was encouraged by the stories and examples of our predecessors – leaders who believed so deeply in the values and promise of this nation that they chose to serve the cause of justice, even when they were excluded by our nation’s system of justice . Their commitment made it possible for all of us to follow our dreams into the law – and to use that opportunity to improve the lives of others.

Now, it may be tempting – when you look at the many accomplished students, attorneys, and judges in this room, or at the diversity of people walking the halls of Congress, or at the man sitting in the Oval Office – to think that “just the beginning” now has become “the middle” or even “the end.” But it will take more than the election of the first African-American President – and certainly more than the appointment of the first African-American Attorney General – for our nation to realize its founding promise of equal justice and equal opportunity.

Today, our nation’s struggle for racial and social equality continues. And the goals that inspired the creation of this foundation are yet to be realized.

Although nearly half a century has passed since Judge Parsons integrated the federal judiciary, less than 9 percent of federal judges are African American. Although minorities account for more than 30 percent of our population, just over 10 percent of America’s lawyers are minorities. That doesn’t mean there aren’t thousands of future minority lawyers out there. It only means that their talents have not yet been shared; their potential has not yet been unleashed.

But this foundation is paving the way forward. From your Middle School Law Camp and High School Extern Program to that final push you give to so many law school graduates, your programming is helping to ensure that today’s students can become tomorrow’s attorneys, judges, professors, and leaders.

As the words, and the dream, of one of Atlanta’s great leaders still remind us, “Darkness cannot drive out darkness; only light can do that.” To me, Dr. King could have been referring to the light of youth. And, for me, it’s clear that if we help our young people understand the strength of our justice system to right wrong – and assure them that their own skills and talents can shape and improve the course of our entire country – then the darkness that still lingers will soon, and finally, be gone.

 

On behalf of the entire Department of Justice, I want you all to know how much your efforts to strengthen our nation’s legal community – and continue our nation’s hard-won progress – are appreciated. This evening, I also want to tell you about some of the work we’re doing – in our own house – to promote diversity among our ranks. Through the Diversity Management Initiative that I launched earlier this year, we are actively recruiting the best-qualified employees of all backgrounds. We have assembled a Diversity Management Advisory Council, created a new position – Deputy Associate Attorney General for Diversity Management – and are taking meaningful steps to track and to encourage diversity in every area of our work. By creating a more inclusive Justice Department, I have every expectation that we’re also becoming a stronger Justice Department.

 

This year has also brought another Justice Department milestone – and a significant step forward in fulfilling our nation’s promise of equal access to our justice system. As all of you – especially the judges here – know, we aren’t where we need to be on this front. It’s no exaggeration to say that our indigent defense problem has reached crisis proportions. And it’s no secret that far too many public defender offices are underfunded and understaffed.

 

These are systemic problems. And they call for reinvention, not merely reform. That’s why the Department has made an historic and permanent commitment to expanding and ensuring access to legal services. This spring, we established a new Access to Justice Office, led by Harvard Law Professor Larry Tribe. Through this landmark initiative, we are working to ensure that quality legal representation is available and accessible. And I have no doubt that this effort will enhance our entire justice system.

 

But if we are to succeed in meeting this goal, the Justice Department can’t move forward alone. We need your engagement. And I ask that each of you seek out and seize every opportunity to strengthen our justice system – in your courtrooms, your casework, or through your pro bono activities.

 

With your help, there’s no question that the Justice Department can advance the extraordinary progress that’s been made over the last 20 months – to keep our people safe from terrorism and violent crime; to fight fraud and promote fairness in our markets; to improve criminal discovery preparation and policy; to ensure that federal sentencing and corrections policies are fair; to combat hate crimes; and to protect civil rights in our board rooms, voting booths, border areas, and beyond.

 

I know that our renewed focus on civil rights has been of particular interest to many of you. I’m pleased to report that our Civil Rights Division has reaffirmed itself as the conscience of the Justice Department and as our nation’s finest civil rights enforcement agency. Of course, there is still work to be done. But our strong enforcement efforts are protecting the rights of disabled Americans, institutionalized persons, voters, veterans, workers, and students. And we’re ensuring that religious freedoms for all our citizens, Christians, Jews, Muslims, as well as education and job opportunities, are protected.

 

In this work, many of you – and other members of the judiciary – have stepped forward, providing critical guidance and expertise. I look forward to building on our conversations – this evening and in the days ahead – about how we can collaborate more effectively in achieving the goals we share.

 

By continuing to work together, I believe we can extend the traditions of service that first inspired the creation of this foundation and continue to define our country.

 

Once again, let me thank you for this opportunity to salute and support your work and to discuss the Justice Department’s activities, priorities, and most fundamental responsibilities: ensuring justice and opportunity for all. With your continued support, I’m certain that we can – and that we will – deliver on this promise.

I’m grateful for your partnership. And I look forward to the work we will continue, the future we will build, and the nation we will surely become.

Thank you.

WASHINGTON – CSI Engineering and CSI Design Build, located in Beltsville, Md., and their president, Debdas Ghosal, have agreed to pay the United States $200,000 to settle claims that they used false statements to obtain contracts from several government agencies, the Justice Department announced today. The contracts had been set aside for companies that qualified for the Small Business Administration’s Historically Underutilized Business Zone (HUBZone) program.

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

The United States alleged that CSI Design Build falsely represented to the SBA and other government agencies that it maintained its principal office in a designated HUBZone location in Maryland. According to the government, CSI Design Build actually operated as part of CSI Engineering, which was not located in a HUBZone. Both companies are owned by Debdas Ghosal. Despite not qualifying for the HUBZone program, CSI Design Build was awarded contracts that had been set aside for qualified HUBZone companies based upon the false statements it made to the SBA and the contracting agencies. The company obtained HUBZone contracts from the Army, the Department of Labor, the Department of Homeland Security and the Smithsonian Institution.

" When there is fraud in government contracting programs, American taxpayers everywhere are the victims," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "We will take action against any contractor who seeks to gain anunfair advantage over qualified HUBZone small businesses."  

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

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

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

WASHINGTON - Today, the Department of Justice, Civil Rights Division, (DOJ) and the Department of Education, Office for Civil Rights, (OCR) reached a settlement agreement with the Boston School Committee, the governing body of the Boston Public Schools, and its superintendent. While conducting a joint investigation, DOJ and OCR determined that, since 2003, the Boston Public Schools had failed to properly identify and adequately serve thousands of English Language Learner (ELL) students as required by the Equal Educational Opportunities Act of 1974 and Title VI of the Civil Rights Act of 1964.

With the cooperation of the Boston Public Schools, the departments conducted an extensive examination of Boston Public Schools’ policies and practices, including site visits to schools. The settlement agreement will ensure that the ELL students who attend Boston Public Schools will no longer be denied language support services based on a system that did not accurately assess or provide for their language needs.

The two serious issues of unidentified ELL students and misidentified "opt outs" date back to 2003. The current superintendent, who joined the district in August 2007, agreed to resolve these longstanding issues by signing the settlement agreement. As a result of the agreement, more than 4,000 students who were inappropriately characterized as having "opted out" of ELL services will now have ELL and compensatory services made available to them. In addition, approximately 4,300 students who were improperly identified as non-ELL students, will, for the first time, be offered ELL services.

In the settlement, the Boston Public Schools agreed to assess the English proficiency of an estimated 7,000 students who were not previously tested in all four language domains of listening, speaking, reading and writing, and to ensure that all potential ELL students are properly identified and accurately assessed in the 2010-11 school year. In order to serve its ELL population, the Boston Public Schools agreed to provide ELL students with Sheltered English Immersion in their core content classes, such as math, social studies and science; to deliver English as a Second Language instruction consistent with state guidance; and to train and hire a sufficient number of teachers to serve its ELL population. The Boston Public Schools also will ensure that special education ELL students are properly assessed and served to address their unique needs. In addition, the Boston Public Schools agreed to monitor the academic performance of current and former ELL students; to offer compensatory services to the ELL students who were recently identified and formerly misidentified as "opt outs;" and to give the parents of those students the information they need to make informed decisions regarding the ELL services their children receive.

"All students who are not proficient in English are entitled to language acquisition services to overcome language barriers that impede their equal and meaningful participation in educational programs," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "Success in this nation necessitates these services, and the Justice Department and Office for Civil Rights will continue to work cooperatively with the Boston Public Schools and its superintendent to ensure that all of its English Language Learner students are afforded the services to which they are entitled."

"All English Language Learner students deserve a quality education free from discrimination that will help them prepare for success in life," said Russlynn Ali, Assistant Secretary for OCR. "Today, we applaud the decision of the Boston School Committee to enter into an agreement with OCR and DOJ that will have a direct and immediate impact on the meaningful participation in educational programs of thousands of ELL students in Boston’s public schools.  OCR and the DOJ will continue to work together to ensure that all ELL students across this country receive the educational services to which they are entitled under our laws."

The enforcement of the Equal Educational Opportunities Act and Title VI are top priorities of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. Enforcement of Title VI is also a top priority of Department of Education’s Office for Civil Rights. Additional information about the Department of Education’s Office for Civil Rights is available on its website at www2.ed.gov/about/offices/list/ocr/index.html.

 

WASHINGTON– A federal district judge in Shreveport, La., has found that Reggie Collier, a Louisiana landowner, violated the Fair Housing Act by interfering with the sale of a home based on the perceived race of the buyer, the Justice Department announced today. The court ordered Collier to pay a $25,000 civil penalty to the United States, and to pay more than $25,000 to compensate the victims of the discrimination.

The lawsuit, which resulted from an investigation conducted by the Department of Housing and Urban Development (HUD), alleged that Collier engaged in a pattern or practice of discrimination by excluding African-Americans from the Camp Joy Marina, located outside Shreveport, and by interfering with the sale of a home based on the perceived race of the buyer.

"Our nation’s civil rights laws have long guaranteed that all individuals, regardless of race, can access housing free from discrimination," said Thomas E. Perez, Assistant Attorney General for Civil Rights. "The Justice Department will not tolerate housing discrimination in this country."

After a two day trial, the court found that Collier implemented "a scheme or device to exclude blacks" from Camp Joy Marina and engaged in a pattern or practice of discrimination. The court credited the testimony of one government witness who operated the marina restaurant and bar, and who testified that Collier threatened to cancel his lease if he allowed African-Americans on the property. The court also found that when a couple living at the marina tried to sell their home, Collier caused the sale to fall apart and then repossessed the house because he was afraid they would sell it to an African-American.

 

"Everyone has the right to be treated fairly and equitably when purchasing a home.  It is one of the most significant and largest purchases one makes," said U.S. Attorney for the Western District of Louisiana Stephanie A. Finley.  "Racial discrimination is wrong, and it is illegal.  The U.S. Attorney’s Office will continue to vigorously address unlawful discrimination and violations of the Fair Housing Act."

"HUD and the Department of Justice work together to end housing discrimination in America," said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity.  "The court’s decision in this case demonstrates that illegal housing discrimination is not welcome in any neighborhood and that the Fair Housing Act will be enforced vigorously."

 

 

The compensatory damages are divided among the couple whose home Reggie Collier repossessed, and the two real-estate agents who lost commissions when the sale fell apart.

Fighting illegal discrimination in housing 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 . Individuals who believe that they have been victims of housing discrimination or have information related to this lawsuit can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected]  or contact the Department of Housing and Urban Development at 1-800-669-9777.

 

 

WASHINGTON – The United States filed a civil complaint today against Coltec Industries Inc., a subsidiary of EnPro Industries Inc., and the National Steel and Shipbuilding Company (NASSCO), a subsidiary of General Dynamics Corp. The complaint was filed Thursday in the U.S. District Court for the District of Columbia under the Clean Air Act and the marine diesel engine rules issued by the Environmental Protection Agency (EPA), the Justice Department and EPA announced.

The complaint, the first federal court action brought by the United States under the marine diesel engine rules, alleges that Coltec’s Fairbanks Morse Engine Division (FME) violated the Act by manufacturing and selling 32 marine engines that were not covered by an EPA-issued certificate of conformity and that NASSCO violated the Act by installing those engines in ships it built and sold in the United States. The complaint further alleges that the 32 uncertified FME engines, plus eight more FME sold to NASSCO, had missing or defective emissions-compliance labels required by EPA’s rules.

The complaint further alleges that NASSCO also violated the Act by manufacturing and selling ships containing several additional engines lacking EPA-issued certificates of conformity, including four propulsion engines manufactured by MAN B&W Diesel A.G., a German company, and installed in an oil tanker, the BP Alaskan Adventurer, and two emergency generator engines installed in other ships that NASSCO sold in the United States.

The Clean Air Act prohibits marine diesel engines (also called compression-ignition engines) from being manufactured or sold in the U.S. unless covered by a "certificate of conformity" indicating that the engine meets applicable emission standards.

The lawsuit is part of an ongoing effort to ensure that marine compression-ignition engines comply with the Clean Air Act’s emissions standards and certification requirements.

The complaint, filed by the Department of Justice on behalf of EPA, seeks civil penalties, as well as actions by the companies to remedy the violations and to mitigate any excess pollutant emissions caused by the violations.

Non-road engines, including marine compression-ignition engines, emit carbon monoxide, as well as volatile organic compounds and nitrogen oxides, which contribute to the formation of ground-level ozone, or smog. Exposure to even low levels of ozone can cause respiratory problems, and repeated exposure can aggravate pre-existing respiratory diseases.

WASHINGTON – Two officers with the New Orleans Police Department have been charged with committing perjury and obstructing justice during the course of a federal civil suit related to the shooting death of civilian Danny Brumfield in September 2005, announced Thomas E. Perez, Assistant Attorney General for the Civil Rights Division; Jim Letten, U.S. Attorney for the Eastern District of Louisiana; and David Welker, Special Agent in Charge of the FBI New Orleans Field Office.

The six-count indictment alleges that Officers Ronald Mitchell and Ray Jones gave false deposition testimony during the course of a federal civil lawsuit filed by Danny Brumfield’s wife against the city of New Orleans. The indictment alleges that the officers intentionally provided false and misleading information regarding the events that took place immediately prior to, during and after the fatal shooting.

According to the indictment, Mitchell shot and killed Danny Brumfield on Sept. 3, 2005, on Convention Center Boulevard in New Orleans. During a deposition in November 2007, Mitchell gave sworn testimony alleging that Brumfield lunged at him with a shiny object and that he fired his shotgun in an effort to protect himself. Mitchell also testified that immediately after the shooting, he exited the patrol car and checked Brumfield’s vital signs. In June 2007, Jones gave sworn deposition testimony stating that he stopped the patrol car immediately after the shooting and covered the crowd while Mitchell checked on Brumfield.

The indictment alleges that Mitchell and Jones’ deposition testimony was false and that they attempted to influence the outcome of the civil suit by misleading the plaintiff’s attorneys. According to the indictment, Mitchell knew that Brumfield did not lunge at him with a shiny object and that he did not exit the car to check Brumfield’s vital signs. Additionally, the indictment alleges that Jones did not stop the car, get out and cover the crowd.

Mitchell faces four felony counts, two for committing perjury and two for obstructing justice. Jones faces one perjury count and one obstruction of justice count.

Mitchell and Jones face a maximum penalty of up to 20 years in prison.

This case is being investigated by the New Orleans Field Office of the FBI, and is being prosecuted by Assistant U.S. Attorney Michael Magner for the Eastern District of Louisiana and Trial Attorney Christopher Lomax of the Justice Department’s Civil Rights Division.

An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.

WASHINGTON – Cynthia Peters and Melissa Edwards pleaded guilty to one count each of aiding and assisting in the filing of a false tax return in U.S. District Court in Baton Rouge, La., the Justice Department and the Internal Revenue Service (IRS) announced today. The court has not yet set a sentencing date.

According to court documents, Peters, who worked at Jasmine and Melissa’s Tax Service in Baton Rouge, prepared fraudulent tax returns for 23 clients that reported falsely inflated telephone excise tax refund (TETR) credits in the total amount of $92,932. The TETR credit was a one-time credit available to taxpayers for the 2006 year. Peters also agreed to pay restitution to the IRS in the amount of $76,908.

According to court documents, Edwards, who also worked at Jasmine and Melissa’s Tax Service in Baton Rouge, prepared fraudulent tax returns for 20 clients that reported falsely inflated TETR credits in the total amount of $126,856. Edwards also agreed to pay restitution to the IRS in the amount of $56,040.

John A. DiCicco, Acting Assistant Attorney General for the Department of Justice, Tax Division, commended the IRS Special Agents who investigated this case and Tax Division Trial Attorneys Kevin C. Lombardi and Matthew J. Mueller and Assistant U.S. Attorney Rene Salomon of the Middle District of Louisiana, who prosecuted the case.

WASHINGTON — Six international freight forwarders have agreed to plead guilty and to pay criminal fines totaling $50.27 million for their roles in several conspiracies to fix a variety of fees and charges in connection with the provision of freight forwarding services for international air cargo shipments, the Department of Justice announced today.These are the first charges filed as a result of the department’s antitrust investigation of the freight forwarding industry.

According to charges filed separately today in U.S. District Court for the District of Columbia, six companies–EGL Inc., a Houston-based company; Kühne + Nagel International AG, based in Schindellegi, Switzerland (K+N); Geologistics International Management (Bermuda) Limited, based in Hamilton, Bermuda; Panalpina World Transport (Holding) Ltd., based in Basel, Switzerland; Schenker AG, based in Essen, Germany; and BAX Global Inc., a Toledo, Ohio-based company–engaged in one or more separate conspiracies to impose certain charges or fees on customers purchasing international freight forwarding services for cargo freight destined for air shipment to the United States during various periods between 2002 and 2007.

Under the plea agreements, which are subject to court approval, the six companies have agreed to pay the following criminal fines: EGL, $4,486,120; K+N, $9,865,044; Geologistics, $687,960; Panalpina, $11,947,845; Schenker, $3,535,514; and BAX Global, $19,745,927. Each company has also agreed to cooperate with the department’s ongoing antitrust investigation.

Freight forwarders manage the domestic and international delivery of cargo for customers by receiving, packaging, preparing and warehousing cargo freight, arranging for cargo shipment through transportation providers such as air carriers and steamship lines, preparing shipment documentation, and providing related ancillary services.

“The department’s investigation uncovered six different conspiracies harming businesses and consumers in the United States and across the globe,” said Christine Varney, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Our investigation continues in this important industry.”

According to the charges, the companies carried out the various conspiracies by, among other things, agreeing during meetings and discussions to coordinate various charges and fees on customers purchasing international freight forwarding services for cargo freight destined for air shipment to the United States. The six alleged conspiracies being charged today are:

• A global conspiracy that took place from March 2003 to October 2007, to impose an Air Automated Manifest System (AAMS) fee on international air shipments of cargo to the United States, in which EGL, Geologistics and Panalpina and others participated;
• A conspiracy that took place from July 2004 to October 2007, to impose an AAMS fee on shipments from Germany to the United States, in which K+N, Schenker and others participated;
• A conspiracy that took place from March 2004 to October 2007, to impose an AAMS fee on shipments from Switzerland to the United States, in which K+N and others participated;
• A conspiracy that took place from October 2002 to October 2007, to impose a New Export System (NES) fee on international air shipments from the United Kingdom to the United States, in which EGL, K+N, BAX and others participated;
• A conspiracy that took place from July 2005 to June 2006, to impose a Currency Adjustment Factor (CAF) on international air shipments from China to the United States, in which K+N, Panalpina, Schenker, BAX and others participated; and
• A conspiracy that took place from August 2005 to December 2007, to impose a Peak Season Surcharge (PSS) on shipments from Hong Kong to the United States, in which K+N, Panalpina, Schenker, BAX and others participated.

Each company is charged with price fixing in violation of the Sherman Act, which carries a maximum fine of $100 million per offense for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today’s charges are the result of a joint investigation into the freight forwarding industry being conducted by the Antitrust Division’s National Criminal Enforcement Section, the FBI’s Washington Field Office and the Department of Commerce’s Office of Inspector General. Anyone with information concerning price fixing or other anticompetitive conduct in the freight forwarding industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694 or visitwww.justice.gov/atr/contact/newcase.htm  or call the FBI’s Washington Field Office, at 202-278-2000.

WASHINGTON — Panasonic Corporation and a Whirlpool Corporation subsidiary, Embraco North America Inc., have agreed to plead guilty and to pay a total of $140.9 million in criminal fines for their role in an international conspiracy to fix the prices of refrigerant compressors, which are used in refrigerators and freezers in homes and businesses, the Department of Justice announced today.

 

According to separate one-count felony charges filed today in U.S. District Court in Detroit, Panasonic, a Japanese corporation, and Embraco, a Delaware-based refrigerant compressor producer and seller, participated in a conspiracy to fix the prices of refrigerant compressors sold in the United States and elsewhere. The department said the conspiracy took place from at least as early as Oct. 14, 2004, until on or about Dec. 31, 2007. According to the plea agreements, which are subject to court approval, both companies have agreed to cooperate with the department’s ongoing refrigerant compressor investigation. Embraco has agreed to pay a $91.8 million criminal fine and Panasonic has agreed to pay a $49.1 million criminal fine.

 

Refrigerant compressors are placed into devices such as refrigerators and freezers and take in low-pressure refrigerant, compress it and then pump out a high-pressure vapor which condenses and subsequently cools the devices.

 

“These are the first charges as a result of the Antitrust Division’s ongoing investigation into the worldwide refrigerant compressors market,” said Christine Varney, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “We are committed to investigating and bringing to justice those who engage in this kind of international price fixing.”

 

According to the charges, Panasonic, Embraco and co-conspirators carried out the conspiracy by agreeing during meetings and conversations to coordinate prices of refrigerant compressors. Panasonic, Embraco and co-conspirators coordinated prices on household compressors. Embraco and co-conspirators also coordinated prices on light commercial compressors. As part of the conspiracy, Panasonic, Embraco and co-conspirators exchanged information for the purpose of monitoring and enforcing adherence to the agreed-upon prices.

 

Both Panasonic and Embraco are charged with price fixing in violation of the Sherman Act, which carries a maximum fine of $100 million for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

 

The department’s ongoing investigation into the worldwide refrigerant compressors market is being conducted by the Antitrust Division’s Cleveland Field Office and the FBI’s Detroit Field Office, Ann Arbor, Resident Agency.

 

Anyone with information concerning price fixing in the refrigerant compressor industry should call the Antitrust Division’s Cleveland Field Office at 216-687-8400 or visit www.justice.gov/atr/contact/newcase.htm .

WASHINGTON – Novartis Pharmaceuticals Corporation has agreed to pay $422.5 million to resolve criminal and civil liability arising from the illegal marketing of certain pharmaceutical products, the Justice Department announced today.

According to the agreement reached with the government, the East Hanover, N.J.-based company will plead guilty to a misdemeanor and pay a $185 million combined criminal fine and forfeiture for the off-label promotion of Trileptal in violation of the Food, Drug and Cosmetic Act. The Food and Drug Administration (FDA) approved Trileptal as an anti-epileptic drug, for the treatment of partial seizures, but not for any psychiatric, pain or other uses. Once a pharmaceutical is approved by the FDA, a manufacturer may not market or promote it for any use not specified in its new drug application. The unauthorized uses are also known as "unapproved" or "off-label" uses.

In addition to the criminal fine and forfeiture, Novartis has agreed to pay $237.5 million to resolve civil allegations under the False Claims Act that the company unlawfully marketed Trileptal and five other drugs, and thereby caused false claims to be submitted to government health care programs. Specifically, the civil settlement resolves allegations that Novartis illegally promoted Trileptal for a variety of uses, including psychiatric and pain uses, which were not medically accepted indications and therefore not covered by those programs. In addition, the agreement resolves allegations that the company paid kickbacks to health care professionals to induce them to prescribe Trileptal and five other drugs, Diovan, Zelnorm, Sandostatin, Exforge and Tekturna. The federal share of the civil settlement is $149,241,306, and the state Medicaid share of the civil settlement is $88,258,694.

"This resolution demonstrates the Department of Justice’s ongoing dedication to taking action against pharmaceutical fraud in all its forms," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "Unlawful off-label promotion and providing illegal inducements to health care professionals undermine the integrity of our health care system and we will continue to pursue these types of violations."

"Off-label marketing can undermine the doctor-patient relationship and adversely influence the clear judgment that a doctor’s patients have come to rely on and trust," said Zane D. Memeger, U.S. Attorney for the Eastern District of Pennsylvania. "Pharmaceutical companies have a legal obligation to promote the drugs they manufacture only for uses that the Food and Drug Administration has deemed are safe and effective. That legal obligation takes priority over a company’s bottom line. This prosecution demonstrates our continuing commitment to ensure that pharmaceutical companies comply with the law."

The civil settlement resolves four lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of fraud to bring civil actions on behalf of the United States and share in any recovery. The four cases are: U.S. ex rel. Austin v. Novartis Pharmaceuticals Corporation; U.S. ex rel. McKee v. Novartis Pharmaceuticals Corporation; U.S. ex rel. Copeland v. Novartis Pharmaceuticals Corporation; and U.S. ex rel. Garrity v. Novartis Pharmaceuticals Corporation. As part of today’s resolution, the whistleblowers, all former employees of Novartis, will receive payments totaling more than $25 million from the federal share of the civil recovery.

"This settlement represents a landmark victory in our district’s continuing battle against health care fraud. We intend to bring to justice any pharmaceutical company that attempts to cloud physicians’ medical judgment through kickback practices and illegal promotional activities," said A. Brian Albritton, U.S. Attorney for the Middle District of Florida.

Novartis also signed a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). The company is subject to exclusion from Federal health care programs, including Medicare and Medicaid, for a material breach of this CIA and subject to monetary penalties for less significant breaches. Among other things, the CIA requires the board of directors (or a committee of the board) to annually review the company’s compliance program with the help of an outside expert and certify its effectiveness; that certain senior executives annually certify that their departments or functional areas are compliant; that Novartis send doctors a letter notifying them about the settlement; and that the company posts on its website information about payments to doctors, such as honoraria, travel or lodging. The five-year agreement further requires the implementation of a compliance program addressing promotional activities.

"OIG will carefully monitor the Corporate Integrity Agreement to ensure that Novartis is more transparent in its business transactions, that its Board of Directors is held more accountable, and that the names of physicians receiving payments are publicly disclosed," said Department of Health and Human Services Inspector General Daniel R. Levinson. "The result will be stronger protections for patients and the nation's taxpayers."

The U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Justice Department’s Office of Consumer Litigation prosecuted the criminal case. The Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Pennsylvania, and the U.S. Attorney’s Office for the Middle District of Florida handled the civil lawsuit, with assistance from the National Association of Medicaid Fraud Control Units and the offices of various state attorneys general.

This settlement is part of the government’s emphasis on combating health care fraud and another step for the HEAT initiative, which was announced by Attorney General Eric Holder and HHS Secretary Kathleen Sebelius in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover approximately $3.445 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 $4.595 billion.  

WASHINGTON - The Justice Department today announced agreements with the cities of Fort Myers, Fla., and Newport, R.I., to improve access to all aspects of civic life for individuals with disabilities. The agreements were reached under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA). The department has now reached 185 agreements under the PCA initiative, improving access to civic life for more than four million individuals with disabilities nationwide.

"Access to local government facilities, programs, and services is an important part of everyday life in the United States, and the ADA ensures that individuals with disabilities have that access on an equal basis with their neighbors," said Thomas E. Perez, Assistant Attorney General of the Civil Rights Division. "I commend city officials in Fort Myers and Newport for making a solid commitment to providing equal access for their residents and visitors with disabilities."

As part of the PCA initiative, department investigators, attorneys and architects survey state and local government facilities, services and programs in communities across the country to identify the modifications needed for compliance with ADA requirements. The agreements are tailored to address the steps each community must take to improve access.

Under the Fort Myers agreement, city officials will take several important steps to improve access for individuals with disabilities, such as:

• Making physical modifications to the following facilities surveyed by the department so that parking, routes into the buildings, entrances, service areas and counters, restrooms, public telephones and drinking fountains are accessible to: the convention center, city hall, Fort Myers Police Station, the Burroughs Home, Dr. Ella Piper Center, Shady Oaks Community Center, the Yacht Basin, the Imaginarium, Golfview Pool and Community Center, Fort Myers Country Club, Stars Sports Complex, Fort Myers Historical Museum and the Edison and Ford Winter Estates.
• Surveying other city facilities and programs and making modifications wherever necessary to achieve full compliance with ADA requirements.
• Implementing a comprehensive plan to improve the accessibility of the city’s sidewalks, transportation stops and pedestrian crossings by installing accessible curb ramps.
• Ensuring that buildings and outdoor facilities that will be built or altered by or on behalf of the city comply with the ADA’s architectural requirements.
• Posting, publishing and distributing a notice to inform members of the public of the provisions of the ADA and their applicability to the city’s programs, services and activities.
• Training city staff in using the Florida Relay Service as a key means of communicating with individuals who are deaf, are hard-of-hearing or have speech impairments.
• Undertaking the required planning and modifications to ensure equal, integrated access to emergency management for individuals with disabilities, including emergency preparedness, notification, evacuation, sheltering, response, clean up and recovery.
• Ensuring that the city’s official website and other web-based services are accessible to people with disabilities.
• Ensuring that any city programs for victims of domestic violence and abuse are accessible to people with disabilities.
• Developing a method for providing information for interested persons with disabilities concerning the existence and location of the city’s accessible services, activities and programs.
• Installing signs at any inaccessible entrance to a facility directing individuals with disabilities to an accessible entrance or to information about accessing programs and services at other accessible facilities.

Under the Newport agreement, city officials will:

• Make physical modifications to the following facilities surveyed by the department so that parking, routes into the buildings, entrances, service areas and counters, restrooms, public telephones and drinking fountains are accessible: City Hall, Louis Duke Abbruzzi Little League Complex, the Van Zandt, Elm Street and Ann Street piers, Newport Gateway Center, Easton’s Beach, King Park, Miantonomi Park and Stone Tower, Cardines Memorial Field, Vernon Park, Hunter Field, the Edwards Street Tot Lot, the Edward King House, Newport Harbor Center, Golden Hill Recreation Center, Eisenhower Park, Newport Police Department, Brick Market Place, Morton Park and the Maintenance Facility which houses the Clean City Program.
• Survey other facilities and programs and make modifications wherever necessary to achieve full compliance with ADA requirements.
• Ensure that buildings and outdoor facilities that will be built or altered by or on behalf of the city comply with the ADA’s architectural requirements.
• Post, publish and distribute a notice to inform members of the public of the provisions of the ADA and their applicability to the city’s programs, services and activities.
• Train city staff to use the telephone relay service as a key means of communicating with individuals who are deaf, are hard-of-hearing or have speech impairments.
• Undertake the required planning and modifications to ensure equal, integrated access to emergency management for individuals with disabilities, including emergency preparedness, notification, evacuation, sheltering, response, clean up and recovery.
• Develop a method for providing information for interested persons with disabilities concerning the existence and location of the city’s accessible services, activities and programs.
• Install signs at any inaccessible entrance to a facility directing individuals with disabilities to an accessible entrance or to information about accessing programs and services at other accessible facilities.
• Continue the implementation of a comprehensive plan to improve the accessibility of sidewalks, transportation stops, and pedestrian crossings by installing accessible curb ramps throughout Newport.

According to U.S. Census data, more than 25 percent of Fort Myers residents and more than 17 percent of Newport residents have a disability and will benefit from these agreements. The department will actively monitor compliance with today’s agreements, which will remain in effect for a period of three years or until the department has confirmed that all required actions have been completed.

Today’s agreements were reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. People interested in finding out more about the ADA, today’s agreements, the Project Civic Access initiative, or the ADA Best Practices Tool Kit for State and Local Governments can access the ADA Web page at www.ada.gov or call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).

HOUSTON – The Department of Justice announced today $298 million in grants to fund the hiring and retaining of 1,388 state, local and tribal law enforcement officers by 379 police and sheriffs departments in 49 states, the District of Columbia and Puerto Rico.  The funding will be administered by the department’s Office of Community Oriented Policing Services (COPS), and is being awarded under the COPS Hiring Program.

The grants provide 100 percent of the approved salary and benefits for entry level officer positions over a three year period.  Police departments receiving the grants will then be required to retain the grant-funded positions for a fourth year.  The funding will provide much needed support to state and local government budgets, and will help the nation’s law enforcement agencies add and retain the manpower needed to fight crime more effectively through community policing.

"We know that the men and women who serve on our nation’s police forces not only respond to crime, but also are critical to reducing it and preventing it," said Associate Attorney General Tom Perrelli.  "The department’s COPS program is based on a simple recognition – there is almost nothing more effective in keeping the public safe than cops on the beat who have the equipment and resources they need."

"American law enforcement is consistently seeking opportunities to better serve the public and fight crime, and today’s grants to hire community policing officers supports these efforts," said COPS Director Bernard K. Melekian.  

For more information about the grants or to learn which law enforcement agencies received funding, please visit www.cops.usdoj.gov.

WASHINGTON – Rodney D. King, 44, was sentenced today by U.S. District Court Judge David Alan Ezra to 300 months in prison followed by a life term of supervised release in federal court, the Justice Department announced. King pleaded guilty on May 25, 2010, to sex trafficking involving two adult women and two minor females, and attempted sex trafficking involving an adult woman. On Aug. 27, 2010, Judge Ezra sentenced King’s co-defendant, Sharon Mae Nishimura, 31, to 100 months in prison followed by five years of supervised release. Nishimura pleaded guilty on Aug. 29, 2009, to attempted sex trafficking involving an adult woman, and sex trafficking involving a minor female.

According to court documents, from April 2006 through June 2007, King used force, fraud and coercion to engage two adult females in commercial sex. Further, in October 2007, King attempted to engage a third adult woman in commercial sex by using force, fraud and coercion, with Nishimura aiding him in that attempt. According to other information before the court, King engaged one of the minor females in commercial sex acts from September 2007 through December 2007, and another minor female in December 2007, knowing both were minors.

"The defendant in this case preyed upon vulnerable women and girls for his own financial gain, robbing them of their freedom and their dignity," said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. "The Justice Department will aggressively prosecute individuals who engage in human trafficking."

"This sentence sends a strong message that this type of predatory crime that targets young and vulnerable victims is unacceptable, and we will continue to vigorously prosecute sex trafficking cases," said Florence T. Nakakuni, U.S. Attorney for the District of Hawaii.

The case culminated investigations by the FBI with the assistance of the Honolulu Police Department and the Sheriff’s Division of the State of Hawaii Department of Public Safety. Assistant U.S. Attorney Darren W.K. Ching and Civil Rights Division trial attorneys Edward Casper and Kayla Bakshi prosecuted this case.

HOUSTON - El Departamento de Justicia anunció hoy $298 millones de dólares en subsidios para financiar la contratación y retención de 1,388 agentes de las fuerzas del orden público estatales, locales y tribales por 379 departamentos de policía y alguaciles en 49 estados, el Distrito de Columbia y Puerto Rico. Los fondos serán administrados por la Oficina de Servicios Policiales con Orientación Comunitaria [Office of Community Oriented Policing Services (COPS)], y están siendo otorgados bajo el Programa de Contratación de COPS.

Los subsidios cubren el 100 por ciento de los salarios y beneficios aprobados para cargos iniciales de agentes a lo largo de un periodo de tres años. Los departamentos de policía que recibirán los subsidios deberán retener los cargos inicialmente financiados por el subsidio por un cuarto año. Los fondos brindarán el apoyo tan necesario a los presupuestos de gobiernos estatales y locales, y ayudarán a las dependencias de las fuerzas del orden público del país a agregar y retener la mano de obra necesaria para combatir la delincuencia más eficientemente a través de la acción policial comunitaria.

"Sabemos que los hombres y mujeres que sirven en las fuerzas policiales de nuestra nación no solo responden a la delincuencia, sino que también son críticas para reducir y prevenirla", dijo el Subsecretario de Justicia de los Estados Unidos Tom Perrelli. "El programa COPS del Departamento se basa en un simple reconocimiento de que no hay nada más eficaz para mantener seguro al público que policías en la calle con los equipos y recursos que necesitan".

"Las fuerzas del orden público estadounidenses buscan constantemente oportunidades para mejor atender al público y combatir la delincuencia, y los subsidios de hoy para la contratación de agentes de la policía apoyan esta labor", dijo el Director de COPS Bernard K. Melekian.

Para más información sobre los subsidios o para conocer qué dependencias de las fuerzas del orden público recibirán fondos, visite www.cops.usdoj.gov.

WASHINGTON – The Department of Justice and the Environmental Protection Agency (EPA) announced today that BP Products North America Inc. has agreed to pay a $15 million penalty to resolve federal Clean Air Act violations at its Texas City, Texas, petroleum refinery. The penalty is both the largest ever assessed for civil violations of the Clean Air Act’s chemical accident prevention regulations, also known as the risk management program regulations, and the largest civil penalty recovered for Clean Air Act violations at an individual facility.

The settlement, which is subject to court approval, addresses violations stemming from two fires that occurred at the refinery in March 2004 and July 2005, and a leak that occurred in August 2005. During the three incidents, which each resulted in the surrounding Texas City community being ordered to shelter-in-place, thousands of pounds of flammable and toxic air pollutants were released. The settlement also resolves allegations that BP failed to identify all regulated hazardous air pollutants used at the refinery in plans submitted to EPA.

“The Clean Air Act is intended not only to prevent accidents like the fatal March 2005 accident, but also to penalize companies with poor practices that cause harmful air pollution,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.  “This settlement reflects the serious nature of the fires and releases of hazardous air pollutants that occurred at BP’s Texas City Refinery and puts industry on notice that the Department of Justice and EPA will aggressively pursue those who fail to comply with the laws that protect human health and the environment.”

“BP’s actions at the Texas City refinery have had terrible consequences for the people who work there and for those in nearby communities,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today's settlement, in conjunction with other actions already taken by EPA and other federal agencies at Texas City, demonstrates the Agency's continuing commitment to actively and vigorously working to hold BP accountable and to make them comply with our nation’s environmental protection laws wherever the company operates.”

“EPA is committed to enforcing the laws to protect the environment and public health,” said Al Armendariz, Regional Administrator for EPA Region 6. “One of our top priorities is to bring this refinery into compliance and help the community to breathe a little easier knowing that fewer toxic pollutants will be in the air.”

EPA identified the Clean Air Act violations addressed in today’s settlement during a series of inspections of the Texas City refinery initiated after a catastrophic explosion and fire in March 2005 that killed 15 people and injured more than 170 others. In addition to the Clean Air Act General Duty Clause and risk management program violations resolved by today’s settlement, EPA also identified violations of other Clean Air Act requirements at the refinery relating to the control of benzene, ozone-depleting substances and asbestos. Exposure to benzene can significantly harm human health and exposure to asbestos, a known human carcinogen, can cause two types of cancer: lung cancer and mesothelioma. These other violations were resolved in a February 2009 settlement that required BP to spend more than $161 million on pollution controls, enhanced maintenance and monitoring, and improved internal management practices at the refinery, as well as pay a $12 million civil penalty and spend $6 million on a supplemental project to reduce air pollution in Texas City and the surrounding area.

With today’s settlement, the federal government will have recovered approximately $137 million in criminal, civil and administrative fines related to process safety violations at the Texas City refinery.  In addition, BP Products has performed approximately $1.4 billion in corrective actions and the company will spend an estimated additional $500 million to improve safety at the refinery as required by settlements entered into with the Occupational Safety and Health Administration and the criminal Clean Air Act plea agreement following the fatal March 2005 explosion.

The events at BP’s Texas City refinery covered by today’s settlement include the following:

• In August 2005, a stream of highly pressurized liquid and gaseous hydrocarbons leaked from a corroded valve within the refinery’s Cat Feed Hydrotreater Unit. Since 1983, BP repeatedly increased the velocity of fluid flowing through the valve without adequately evaluating the effects of the increased flow on the unit’s maintenance needs.
• In July 2005, a carbon-steel piping elbow in the refinery’s Resid Hydrotreater Unit ruptured and caused a major fire. The carbon-steel piping elbow had been incorrectly installed by a maintenance contractor in a location that required a stronger metal in order to withstand the existing operating temperatures and pressures.
• In March 2004 a corroded 20-inch diameter pipe at the refinery’s Ultraformer No. 4 process unit ruptured and caused a major fire that burned for several hours. Corrosion, which had gone undetected, reduced the pipe-wall thickness to the point where it ruptured at normal operating temperatures and pressures.

The Clean Air Act General Duty Clause and risk management program regulations contain a comprehensive set of requirements to prevent accidental releases of hazardous air pollutants, an important objective of the Clean Air Act. These regulations require owners and operators of facilities, such as petroleum refineries, to, among other things, perform adequate and timely equipment inspections and repairs, train employees involved in the operation and maintenance of equipment, evaluate the consequences of changes to operating practices and equipment, and ensure that operating procedures contain clear and comprehensive instructions.

BP’s Texas City refinery is the third largest in the United States, with a production capacity of more than 460,000 barrels of oil per day.

The proposed settlement was lodged today in the U.S. District Court for the Southern District of Texas. The settlement is subject to a 30-day public comment period and final court approval.

More information on the settlement is available at the EPA Compliance and Enforcement website .

WASHINGTON - El Departamento de Justicia y la Agencia de Protección Ambiental [Environmental Protection Agency (EPA)] anunciaron hoy que BP Products North America Inc ha acordado pagar una multa de $15 millones de dólares en resolución de violaciones federales de la Ley de Aire Limpio en su refinería de petróleo en la Ciudad de Texas, Texas. La multa es la mayor ya impuesta por violaciones civiles de las normas de prevención de accidentes químicos de la Ley de Aire Limpio, también conocidas como normas del programa de administración de riesgos, y la mayor multa impuesta a un único establecimiento por violaciones de la Ley de Aire Limpio.

El acuerdo conciliatorio, el que está sujeto a aprobación judicial, se refiere a violaciones cometidas a partir de dos incendios que ocurrieron en la refinería en marzo de 2004 y julio de 2005, y una fuga que ocurrió en agosto de 2005. Durante los tres incidentes, los que resultaron en que se tuviera que ordenar a la comunidad cercana de la Ciudad de Texas a que se refugiara en su lugar, se liberaron miles de libras de contaminantes del aire tóxicos e inflamables. El acuerdo conciliatorio también resuelve alegatos de que BP dejó de identificar todos los contaminantes del aire peligrosos regulados utilizados en la refinería en planes presentados a la EPA.

"La Ley de Aire Limpio no tiene la finalidad única de prevenir accidentes como el accidente fatal de marzo de 2005, sino también penalizar a las compañías por prácticas indebidas que causan contaminación nociva del aire, dijo Ignacia S. Moreno, Secretaria de Justicia Auxiliar de la División de Medio Ambiente y Recursos Naturales del Departamento de Justicia. "Este acuerdo conciliatorio refleja la naturaleza grave de los incendios y liberaciones de contaminantes del aire peligrosos que ocurrieron en la Refinería de la Ciudad de Texas de BP y avisa al ramo que el Departamento de Justicia y la EPA enjuiciarán enérgicamente a quienes dejen de cumplir con las leyes que protegen a la salud humana y el medio ambiente".

"Las acciones de BP en la refinería de la Ciudad de Texas han tenido consecuencias terribles para las personas que trabajan en el lugar y para aquellas en comunidades próximas", dijo Cynthia Giles, Administradora Auxiliar de la Oficina de Control y Garantía de Cumplimiento de la EPA. "El acuerdo conciliatorio de hoy, en conjunto con otras acciones ya tomadas por la EPA y otras agencias federales en la Ciudad de Texas, demuestra el compromiso continuo de la Agencia de trabajar activa y enérgicamente en responsabilizar a BP y hacerlos cumplir las leyes de protección ambiental de nuestro país donde sea que opere la empresa".

"La EPA se compromete a hacer valer las leyes para proteger al medio ambiente y la salud pública", dijo Al Armendàriz, Administrador Regional de la Región 6 de la EPA. "Una de nuestras principales prioridades es hacer que esta refinería cumpla con las normas vigentes y ayudar a la comunidad a respirar mejor sabiendo que habrá menos contaminantes tóxicos en el aire".

La EPA identificó las violaciones a la Ley de Aire Limpio de las que trató el acuerdo conciliatorio de hoy durante una serie de inspecciones realizadas en la refinería de la Ciudad de Texas después de una catastrófica explosión e incendio en marzo de 2005, donde 15 personas murieron y más de 170 personas sufrieron lesiones. Además de violaciones a la Cláusula de Obligaciones Generales de la Ley del Aire Limpio y al programa de administración de riesgos resueltas por el acuerdo conciliatorio de hoy, la EPA también identificó violaciones de otras exigencias de la Ley de Aire Limpio en la refinería asociadas al control del benceno, sustancias que agotan el ozono y asbestos. La exposición al benceno puede provocar daños significativos a la salud humana, y la exposición al asbestos, un conocido carcinógeno humano, puede causar dos tipos de cáncer: cáncer de pulmón y mesotelioma. Estas otras violaciones fueron resueltas en un acuerdo conciliatorio de febrero de 2009 que exigió que BP invirtiera más de $161 millones de dólares en controles de contaminación, mantenimiento y observación mejorada y mejores prácticas internas de administración en la refinería, así como que pagara una multa civil de $12 millones de dólares y gastara $6 millones de dólares en un proyecto complementario para reducir la contaminación del aire en la Ciudad de Texas y alrededores.

Con el acuerdo conciliatorio de hoy, el gobierno federal habrá recuperado aproximadamente $137 millones en multas criminales, civiles y administrativas asociadas a violaciones de seguridad de procesos en la refinería de la Ciudad de Texas. Además, BP Products ha realizado aproximadamente $1.4 billones de dólares en acciones correctivas y la empresa dedicará aproximadamente $500 millones de dólares adicionales a mejorar la seguridad en la refinería, como lo exigen los acuerdos conciliatorios realizados con la Administración de Seguridad y Salud Ocupacionales y el acuerdo de declaración de culpabilidad criminal asociado a la Ley del Aire Limpio realizado después de la explosión fatal de marzo de 2005.

Los hechos en la refinería de BP de la Ciudad de Texas cubiertos por el acuerdo conciliatorio de hoy incluyen lo siguiente:

• En agosto, una corriente de líquido de alta presurización e hidrocarburos gaseosos se escapó de una válvula con corrosión dentro de la Unidad de Hidrotratamiento de Alimentos para Gatos. Desde 1983, BP repetidamente aumentó la velocidad del líquido que fluía a través de la válvula sin evaluar adecuadamente los efectos del aumento del flujo en las necesidades de mantenimiento de la unidad.
• En julio de 2005, un codo de tubería de acero al carbón en la Unidad de Hidrotratamiento Resid de la refinería reventó causando un gran incendio. El codo de tubería de acero al carbón había sido instalado incorrectamente por un contratista de mantenimiento en una ubicación que requería un metal más fuerte para soportar las temperaturas y presiones de funcionamiento existentes.
• En marzo de 2004, un tubo corroído de 20 pulgadas de diámetro en la unidad de procesos No. 4 Ultraformer de la refinería reventó y causó un gran incendio que duró varias horas. La corrosión no detectada redujo el espesor de la pared del tubo a tal punto que reventó a temperaturas y presiones normales de funcionamiento.

Las normas de la Cláusula de Obligaciones Generales y el programa de administración de riesgos de la Ley de Aire Limpia contienen un conjunto exhaustivo de exigencias para prevenir liberaciones accidentales de contaminantes del aire peligrosos, un importante objetivo de la Ley de Aire Limpio. Estas normas exigen que los propietarios y operadores de instalaciones, tales como refinerías de petróleo, entre otras cosas, realicen inspecciones y reparaciones de equipos adecuados y oportunos, capaciten a empleados que se dediquen a tareas de operación y mantenimiento de equipos, evalúen las consecuencias de cambios en prácticas operativas y equipos, y aseguren que los procedimientos operativos contengan instrucciones claras y exhaustivas.

La refinería de la Ciudad de Texas de BP es la tercera en tamaño en los Estados Unidos, con una capacidad de producción de más de 460,000 barriles de petróleo por día.

El acuerdo conciliatorio propuesto fue presentado hoy al Tribunal Federal de Distrito para el Distrito Sur de Texas. El acuerdo conciliatorio está sujeto a un período de comentario público de 30 días y a la aprobación del tribunal.

Para obtener más información sobre el acuerdo conciliatorio, visite el portal de Cumplimiento y Aplicación Legal de la EPA.

WASHINGTON – Tres ciudadanos colombianos se declararon culpables hoy de conspiración para realizar contrabando de extranjeros por ganancias monetarias y conspiración para cometer fraude de visa en conexión con sus papeles en un ardid de fraude de visas amplio y sofisticado a través del cual obtuvieron visas fraudulentamente en la Embajada de EE.UU. en Bogotá, Colombia. Las declaraciones de culpabilidad fueron anunciadas hoy por el Fiscal Federal Auxiliar Lanny A. Breuer de la División Criminal; el Fiscal Federal Ronald C. Machen Jr. del Distrito de Colombia; el Director John Morton del Servicio de Inmigración y Control de Aduanas de EE.UU. [U.S. Immigration and Customs Enforcement (ICE)]; y Eric Boswell, Secretario Auxiliar de Seguridad Diplomática y Director de la Oficina de Misiones Extranjeras, Departamento de Estado de EE.UU.

Heliber Toro Mejía, 52; Humberto Toro Mejía, 60; y Luz Elena Acuna Ríos, 53; todos de Bogotá, se declararon culpables en Washington, D.C., ante la Juez Federal de Distrito Ellen S. Huvelle. En la emisión de la sentencia, programada para el 6 de diciembre de 2010, cada demandado enfrenta una sentencia máxima de 10 años en prisión por conspiración para cometer contrabando de extranjeros por ganancias monetarias y cinco años en prisión por conspiración para cometer fraude de visa. Cada demandado también es susceptible de una multa máxima de $250,000 dólares por cada cargo.

Los demandados fueron acusados en una acusación formal compuesta por tres cargos emitida por un gran jurado federal en el Distrito de Columbia el 4 de febrero de 2009. Los demandados fueron arrestados el 2 de junio de 2009 por autoridades colombianas en Bogotá a partir de órdenes provisionales de arresto en respuesta a una solicitud del gobierno de EE.UU. de su arresto, siendo luego extraditados a los Estados Unidos para su enjuiciamiento.

Heliber Toro Mejía, Humberto Toro Mejía y Ríos admitieron que operaban una red de fraude de visas amplia y sofisticada que lucraba ayudando a ciudadanos colombianos que no cumplían los requisitos para obtener una visa, a conseguir visas de EE.UU. fraudulentamente a través de la Embajada de EE.UU. en Bogotá. De acuerdo con el expediente de la declaración de culpabilidad, los demandados y otros conspiradores supuestamente crearon antecedentes ficticios para los extranjeros, así como documentación de respaldo fraudulenta, incluida documentación que parecía ser emitida por el gobierno colombiano, tales como declaraciones de impuestos y certificados de nacimiento y matrimonio. De acuerdo con el expediente de la declaración de culpabilidad, los conspiradores instruyeron a los extranjeros con respecto a cómo aprobar la entrevista de solicitud de visa en la Embajada de EE.UU. en Bogotá respondiendo a preguntas de manera engañosa, y también cómo mentir a las autoridades inmigratorias de EE.UU. sobre sus antecedentes al ingresar a los Estados Unidos. Los demandados admitieron que ayudaron a más de 100 extranjeros a obtener o intentar obtener una visa estadounidense fraudulentamente durante la conspiración. De acuerdo con el expediente de declaración de culpabilidad, muchos de esos extranjeros que lograron obtener una visa solicitada de manera fraudulenta utilizaron la visa para ingresar a los Estados Unidos.

Como parte de los acuerdos de declaración de culpabilidad, los demandados también acordaron entregar activos asociados al ardid de contrabando de extranjero y fraude de visas, incluida una oficina en Bogotá, y $234,533 dólares del producto del ardid. Los demandados aceptaron prestar plena asistencia a los gobiernos de los Estados Unidos y de la República de Colombia en la identificación y ubicación de toda propiedad directamente confiscable y activos sustitutos y transferir la titularidad de propiedad directamente confiscable y activos sustitutos a los Estados Unidos. Si lo solicita el gobierno de EE.UU., los demandados también entregarán voluntariamente al gobierno de Colombia todo y cualquier bien sujeto a confiscación como resultado de sus actividades criminales.

Las declaraciones de culpabilidad son el resultado de la "Operación País del Café", una investigación internacional coordinada por el Servicio de Seguridad Diplomática - Oficina de Seguridad Regional en Bogotá y la Agregaduría del Servicio de Inmigración y Control de Aduanas [Immigration and Customs Enforcement (ICE)] en Bogotá. El Agente Especial a Cargo de ICE HSI en Washington, D.C. y el Servicio de Seguridad Diplomática, División de Investigaciones Criminales brindaron asistencia significativa.

El gobierno de Colombia, incluido el Departamento Colombiano de Seguridad Administrativa y fiscales colombianos, brindaron asistencia y apoyo significativos durante la investigación, el arresto y la extradición de los demandados. La Oficina de Asuntos Internacionales del Departamento de Justicia de EE.UU. y la Embajada de EE.UU. en Bogotá trabajaron con sus contrapartes en Colombia para efectuar la extradición.

Están a cargo de la acusación en el caso el Abogado Litigante Principal James S. Yoon de la Sección de Derechos Humanos y Enjuiciamientos Especiales de la División Criminal y el Fiscal Federal Auxiliar Frederick W. Yette de la Fiscalía Federal para el Distrito de Columbia. La Abogada Litigante de la Oficina de Asuntos Internacionales de la División Criminal Nicolette Romano brindó asistencia significativa. La Abogada Litigante Jean Weld de la Sección de Confiscación de Activos y Lavado de Dinero de la División Criminal también brindó asistencia.

WASHINGTON – Three Colombian nationals pleaded guilty today to conspiracy to smuggle aliens for profit and conspiracy to commit visa fraud in connection with their roles in an extensive and sophisticated visa fraud scheme through which they fraudulently procured visas from the U.S. Embassy in Bogotá, Colombia. The guilty pleas were announced today by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Ronald C. Machen Jr. of the District of Columbia; Director John Morton of U.S. Immigration and Customs Enforcement (ICE); and Eric J. Boswell, Assistant Secretary for Diplomatic Security and Director of the Office of Foreign Missions, U.S. State Department.

Heliber Toro Mejia, 52; Humberto Toro Mejia, 60; and Luz Elena Acuna Rios, 53; all of Bogotá, pleaded guilty in Washington, D.C., before U.S. District Judge Ellen S. Huvelle. At sentencing, scheduled for Dec. 6, 2010, each defendant faces a maximum sentence of 10 years in prison for conspiracy to commit alien smuggling for profit and five years in prison for conspiracy to commit visa fraud. Each defendant is also subject to a maximum fine of $250,000 for each charge.

The defendants were charged in a three-count indictment returned by a federal grand jury in the District of Columbia on Feb. 4, 2009. The defendants were arrested on June 2, 2009, by Colombian authorities in Bogotá on provisional arrest warrants in response to a U.S. government request for their arrest and were subsequently extradited to the United States for prosecution.

Heliber Toro Mejia, Humberto Toro Mejia and Rios admitted that they operated an extensive and sophisticated visa fraud ring that profited by assisting otherwise inadmissible Colombian nationals in fraudulently procuring visas from the U.S. Embassy in Bogotá. According to plea documents, to support the visa applications of alien applicants, the defendants and other conspirators created fictitious backgrounds for the aliens and fraudulent supporting documentation, including paperwork that appeared to be official Colombian government-issued documents such as tax filings and birth and marriage certificates. According to plea documents, the conspirators coached the aliens on how to pass the visa interview at the U.S. Embassy in Bogotá by answering questions untruthfully as well as how to lie to U.S. immigration authorities about their backgrounds when entering the United States. The defendants admitted to assisting more than 100 aliens in fraudulently obtaining or attempting to fraudulently obtain a U.S. visa during the course of the conspiracy. According to plea documents, many of those aliens who did obtain a fraudulently-procured visa used that visa to enter the United States.

As part of the plea agreements, the defendants also agreed to forfeit assets related to the alien smuggling and visa fraud scheme, including an office in Bogotá and $234,533 in proceeds. The defendants agreed to fully assist the governments of the United States and the Republic of Colombia in the identification and location of all directly forfeitable property and substitute assets and to pass clear title to directly forfeitable property and substitute assets to the United States. If requested by the U.S. government, the defendants also agreed to voluntarily forfeit to the government of Colombia any and all assets which are subject to forfeiture as the result of their criminal activities.

The guilty pleas are the result of “Operation Coffee Country,” a coordinated international investigation by the ICE Homeland Security Investigations (HSI) Attaché’s Office in Bogotá and the Diplomatic Security Service - Regional Security Office in Bogotá. The ICE HSI Special Agent in Charge for in Washington, D.C., and the Diplomatic Security Service - Criminal Investigations Division provided substantial assistance.

The government of Colombia, including the Colombian Department of Administrative Security and Colombian prosecutors, provided significant assistance and support during the investigation, arrest and extradition of the defendants. The U.S. Department of Justice’s Office of International Affairs and the U.S. Embassy in Bogotá worked with their counterparts in Colombia to effect the extradition.

The case is being prosecuted by Senior Trial Attorney James S. Yoon of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Frederick W. Yette of the U.S. Attorney’s Office for the District of Columbia. Significant assistance from the Criminal Division’s Office of International Affairs was provided by Trial Attorney Nicolette Romano. Trial Attorney Jean Weld from the Criminal Division’s Asset Forfeiture and Money Laundering Section also provided assistance.

WASHINGTON – An owner of two Houston health care companies pleaded guilty today in connection with a $6.3 million Medicare fraud scheme, announced the Departments of Justice and Health and Human Services (HHS).

Clifford Ubani, 52, pleaded guilty before U.S. District Court Judge Gray Miller in Houston to conspiracy to commit health care fraud.  In his plea, Ubani admitted that he defrauded Medicare of $6.3 million. 

According to court documents, Ubani was an owner and operator of Family Healthcare Services (Family Services).  Family Services maintained a valid Medicare provider number in order to submit Medicare claims for the costs of durable medical equipment (DME) and purported to provide orthotics and other DME to Medicare beneficiaries.  According to court documents, Ubani hired co-conspirators to recruit Medicare beneficiaries for the purposes of filing claims with Medicare for DME.  Once Medicare beneficiary numbers were obtained by Ubani, Family Services submitted claims to Medicare for DME, including orthotic devices, which were medically unnecessary and/or not provided.  Many of the orthotic devices were components of what was referred to as an “arthritis kit,” and purported to be for the treatment of arthritis-related conditions, although they were not medically necessary and appropriate for such conditions.  The arthritis kit generally contained a number of orthotic devices including braces for both sides of the body and related accessories such as heat pads.  Ubani admitted that he paid kickbacks to the recruiters for their referrals.  In total, Family Services submitted approximately $1.1 million in fraudulent claims to Medicare.

Additionally, Ubani was an owner and operator of Family Healthcare Group (Family Group), a home health care company.  Family Group purported to provide skilled nursing to Medicare beneficiaries.  According to court documents, Ubani hired co-conspirators 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.  Ubani admitted that he paid kickbacks to the recruiters for their referrals.  In total, Family Group was paid approximately $5.2 million by Medicare for the submission of fraudulent claims. 

At sentencing, scheduled for Feb. 25, 2011, Ubani 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 810 individuals who collectively have falsely billed the Medicare program for more than $1.85 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 Justice Department today announced settlement agreements with the city of Muskegon, Mich., and the city of Cheyenne, Wyo., to improve access to public programs and facilities for persons with disabilities.

 

The agreements with the cities of Muskegon and Cheyenne were reached under Project Civic Access, the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).

 

Under the agreement with Muskegon, which will be in effect for five years, the city will take numerous important steps to improve access for individuals with disabilities, such as: 

• Making physical modifications to its facilities so that parking, routes into the buildings, entrances, public telephones, restrooms, service counters, and drinking fountains are accessible to people with disabilities. The agreement specifies which modifications will be made at each facility. Facilities covered by the agreement include city hall, Muskegon Police Station, Central Fire Station/9-1-1 Call Center, Cross Lake Express Ferry Terminal, L.C. Walker Arena, Muskegon Farmers Market, Fisherman’s Landing, and numerous parks, community centers and other recreational facilities.
• Surveying facilities not reviewed by the department and making necessary accessibility modifications to those facilities in accordance with ADA requirements.
• Posting, publishing and distributing a notice to inform members of the public of the provisions of title II and their applicability to the city of Muskegon’s programs, services and activities.
• Providing accessible polling places.
• Ensuring that the county’s official website is accessible to people with disabilities.
• Installing signs at any inaccessible entrance to a facility directing individuals with disabilities to an accessible entrance or to information about accessing programs and services at other accessible facilities.
• Providing accessible curb ramps at sidewalks, pedestrian crossings and transportation stops.
• Developing a method for providing information for interested persons with disabilities concerning the existence and location of the city of Muskegon’s accessible services, activities and programs.
• Implementing a plan to ensure the accessibility of sidewalks and curb ramps throughout the city of Muskegon.  

“Access to public programs and facilities is a civil right, and individuals with disabilities must have the opportunity to participate in public programs, services and activities on an equal basis with their neighbors,” said Thomas E. Perez, Assistant Attorney General of the Civil Rights Division. “The agreement with the city of Muskegon reflects a major commitment by city officials to make Muskegon’s programs and facilities accessible, including a commitment to install large numbers of curb ramps at sidewalks, pedestrian crossings and transportation stops. I commend Muskegon’s officials for making this commitment to its residents with disabilities, and for working with us to attain equal access to all of its programs, activities and services.”

 

The agreement with the city of Cheyenne will improve access to a multi-use arena, which primarily hosts ice sports, concerts and other entertainment events. The department initiated an investigation of the arena after receiving several complaints alleging that the facility was not accessible to individuals with mobility disabilities. Under the agreement, the city of Cheyenne will make physical modifications so that parking, locker rooms, toilet rooms, the billiards and video game area, the mini-golf course, drinking fountains, and routes to entrances and facility amenities are accessible to individuals with disabilities. Modifications will include:

• Providing an accessible elevator so that persons with disabilities can access each level of the arena.
• Providing wheelchair seating areas in various locations throughout the center so that individuals with mobility disabilities will have a choice of viewing opportunities for events at the center.
• Providing individuals with disabilities with an equal opportunity to purchase tickets for center events, including the option to purchase tickets for wheelchair and companion seating areas online in the same manner that other seats are sold online. 

“The city of Cheyenne willingly worked with the department to resolve these access issues at the arena, which were inherited from another entity when the city acquired the arena in 2008,” said Assistant Attorney General Perez. “I commend Cheyenne’s public officials for working cooperatively to afford equal access to this entertainment venue for its residents and visitors with disabilities.”

 

Today’s agreements were reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments.   The department will actively monitor compliance with these agreements until it has confirmed that all required actions have been completed.

 

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

 

More information about the Civil Rights Division and the laws it enforces is available at the website www.justice.gov/crt.   More information about the ADA, today’s agreements, the Project Civic Access initiative and the ADA Best Practices Tool Kit for State and Local Governments can be accessed at the ADA Web page at www.ada.gov or by calling the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).

WASHINGTON - The United States has filed suit seeking to permanently enjoin Endia Delores Nipper and her company, TDNS Tax Services, from preparing federal tax returns, the Justice Department announced today. The suit, filed in U.S. District Court for the Southern District of Georgia, alleges that Nipper fabricated or inflated earned income tax credit claims on tax returns that she prepared for her clients. TDNS is located in Augusta, Ga.

According to the government’s complaint, Nipper has prepared close to 4,000 income tax returns each year since 2007, and approximately 50 percent of those returns claimed the earned income tax credit. Audits by the Internal Revenue Service resulted in the disallowance or reduction of the earned income tax credit in nearly 90 percent of the returns audited. The average adjustment on the audited returns was in excess of $4,000.

This civil injunction is part of the Justice Department’s nationwide crackdown on tax scams, including the preparation of fraudulent federal tax returns. Since 2001, the Justice Department has obtained hundreds of injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. More information about the Justice Department’s Tax Division can be found at www.usdoj.gov/tax.

WASHINGTON – Former Memphis Police Officer Isaac White was sentenced yesterday to 18 months in prison, two years supervised release and a $4,000 fine, announced Thomas E. Perez, Assistant Attorney General for Civil Rights; Edward L. Stanton, III , U.S. Attorney for the Western District of Tennessee; Larry Godwin, Director, Memphis Police Department; and Amy Hess, FBI Special Agent in Charge.

 

On Nov. 25, 2009, White pleaded guilty to violating the civil rights of Pierre Jefferson. White admitted that in May 2008, after handcuffing Jefferson, he rammed Jefferson’s head into the corner of a building, and struck Jefferson in the face several times, causing him to fall to the ground. White also admitted to kicking Jefferson after he fell to the ground.

 

“Police officers are entrusted with great power so that they can carry out their critical public safety responsibilities,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.  “The Department of Justice does not tolerate excessive force, and when officers abuse their power by abusing people in their custody, the department will aggressively prosecute.”

 

“The citizens of the Western District of Tennessee are entitled to know that when dealing with a law enforcement officer the officer is there to protect them, not prey upon them,” said U.S. Attorney Stanton. “Accordingly, this office will pursue these cases vigorously.”

 

“Again this shows the partnership between the Memphis Police Department and U.S. Attorney’s Office. Illegal and criminal activity will not be tolerated by the Memphis Police Department,” said Director Godwin.

 

“The FBI holds as one of its highest priorities the investigation of civil rights violations, and the Memphis Division will pursue those who are entrusted with protecting our citizenry and violate that trust,” said Special Agent Hess. “The FBI will continue to work with its law enforcement partners to ensure that justice is served.”

 

The case is a result of the continued joint efforts by the Memphis Police Department, the FBI and the U.S. Attorney’s Office. The case was investigated by the FBI/MPD Joint Task Force and the Organized Crime Unit. The case was prosecuted by Assistant U.S. Attorneys Steve Parker and Brian Coleman, and Civil Rights Criminal Section Trial Attorney Jonathan Skrmetti.

WASHINGTON – A federal court in Miami has permanently barred Alberto Camejo and his business, ABCY Star Service LLC, from claiming the First-Time Homebuyer Credit on returns they prepare unless ensuring that the taxpayer is entitled to claim the credit, the Justice Department announced today. The civil injunction order, signed by Chief Judge Federico A. Moreno of the U.S. District Court for the Southern District of Florida, requires Camejo to notify his customers who claimed the Homebuyer Credit of the injunction order.

Congress enacted the First-Time Homebuyer Credit in 2008 to strengthen the real estate market and help the economy. It allowed persons who have not owned a home in the previous three years to claim a credit of up to $8,000 against their federal income taxes if they bought a home after April 8, 2008. The credit was expanded to allow, under certain conditions, current homeowners to claim the credit for a purchase of a new home. But in order for a taxpayer to claim the credit a home must have actually been purchased. The credit is not available to buyers who entered into a contract after April 30, 2010.

The government complaint in the case had alleged that Camejo claimed the credit on customers’ returns even though the customers had not purchased new homes.

This is the latest of several cases the government has filed in Florida to stop preparers who have allegedly abused the First-Time Homebuyer Credit. Last April a federal court in Miami permanently barred a man from preparing returns for others in a case where the Justice Department alleged abuse of the homebuyer credit and other tax law provisions.

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

WASHINGTON - A federal court in Los Angeles has permanently barred three Huntington Beach men from preparing federal tax returns for customers, the Justice Department announced today. The civil injunction order, entered by U.S. District Judge A. Howard Matz, states that Alexander H. Adams, who does business as Adams Beach Income Tax, and his sons, Brandon A. Adams and Garrett R. Adams, prepare federal income tax returns claiming massive fraudulent tax refunds based on fabricated income tax withholdings.

The court order also bars the Adamses from promoting tax fraud schemes, including the 1099-OID program or "commercial redemption" program. The court held that the Adamses "promote a tax fraud scheme designed to siphon massive fraudulent tax refunds from the U.S. Treasury." The court found that under their scheme, the Adamses prepare various false IRS forms, such as Form 1099-OID, to request fraudulent refunds based on phony claims of large income tax withholding. The court order states that the scheme is based in part on defendants’ absurd claim that secret accounts exist that can be accessed to pay these refund claims.

According to the court order, the Adamses prepared tax returns claiming huge false tax refunds, often exceeding $500,000. Two of the returns, including one for Garrett Adams, included fraudulent claims of $2.5 million. Other courts have enjoined return preparers for promoting the same type scheme.

The court order also requires the Adamses to provide a list of their customers to the United States and to notify their customers of the injunction.

Return preparer fraud and bogus refund claims based on false 1099-OID forms are identified by the IRS two of the 2010 "Dirty Dozen" tax scams. In the past decade the Justice Department’s Tax Division has obtained hundreds of injunctions against tax fraud promoters and dishonest tax return preparers. Information about these cases is available on the Justice Department’s website.

WASHINGTON - Un tribunal federal en Miami ha prohibido permanentemente a Alberto Camejo y su empresa, ABCY Star Service LLC, de reclamar el Crédito para Primeros Compradores de Viviendas en declaraciones de impuestos que preparan sin asegurar que el contribuyente tenga derecho a dicho crédito, anunció hoy el Departamento de Justicia. La orden de interdicto civil, firmada por el Juez Principal Federico A. Moreno del Tribunal Federal de Distrito para el Distrito Sur de Florida, exige que Camejo notifique a sus clientes que reclamaron el Crédito para Compradores de Viviendas en la orden de interdicto.

El Congreso aprobó el Crédito para Primeros Compradores de Viviendas en 2008 para fortalecer el mercado de bienes raíces y ayudar a la economía. El mismo permitió que personas que no poseían una vivienda en los tres años anteriores reclamaran un crédito de hasta $8,000 dólares contra sus impuestos sobre ingreso federal, si compraban una vivienda después del 8 de abril de 2008. Se ha ampliado el crédito para permitir, bajo ciertas condiciones, que propietarios de vivienda actuales reclamaran el crédito para la compra de una nueva vivienda. Sin embargo, para que el contribuyente pudiera reclamar el crédito, debía haber efectivamente comprado una vivienda. El crédito no está disponible para compradores que hayan firmado un contrato después del 30 de abril de 2010.

La demanda entablada por el gobierno alega que Camejo reclamaba el crédito en las declaraciones de sus clientes, aunque los clientes no hubieran comprado viviendas nuevas.

Esta es la más reciente de varias demandas entabladas por el gobierno en Florida para detener las acciones de preparadores que, supuestamente, abusaron del Crédito para Primeros Compradores de Viviendas. En abril del año pasado, un tribunal federal en Miami prohibió permanentemente a un hombre la preparación de declaraciones de impuestos para terceros en un caso en que el Departamento de Justicia alegó abuso del crédito para compradores de vivienda y otras disposiciones de la ley tributaria.

En la última década, la División de Impuestos del Departamento de Justicia ha obtenido cientos de interdictos contra preparadores de declaraciones de impuestos fraudulentos y promotores de fraude tributario deshonestos. Se puede encontrar información sobre estos casos en el portal del Departamento de Justicia.

WASHINGTON – ABB Ltd, una empresa suiza, y dos de sus subsidiarias han resuelto cargos asociados a violaciones de la Ley de Prácticas Corruptas en el Extranjero [Foreign Corrupt Practices Act (FCPA)], anunciaron el Secretario de Justicia Auxiliar de la División Criminal Lanny A. Breuer; Richard C. Powers, Agente Especial a Cargo de la Oficina Local de Houston del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)]; y Rodney E. Clarke, Agente Especial a Cargo de la Oficina Local de Houston de Investigaciones Criminales del Servicio de Impuestos Internos [Internal Revenue Service - Criminal Investigation’s (IRS-CI)].

En la audiencia de declaración de culpabilidad de hoy ante la Juez Federal de Distrito Lynn N. Hughes del Distrito Sur de Texas, la subsidiaria en EE.UU. de ABB Ltd, ABB Inc., se declaró culpable de una acusación criminal que la acusaba de un cargo de violación de las disposiciones antisoborno de la FCPA y un cargo de conspiración para violar dichas disposiciones de la FCPA. El tribunal impuso una sentencia que incluye una multa criminal de $17.1 millones de dólares.

Como parte de la declaración de culpabilidad de ABB Inc., admitió que una de sus unidades de negocios con sede en Sugar Land, Texas, ABB Network Management (ABB NM), pagó sobornos de 1997 a 2004 por un total de aproximadamente $1.9 millones de dólares a funcionarios de la Comisión Federal de Electricidad (CFE), una empresa estatal mexicana de servicios públicos. La principal actividad de ABB NM era proveer productos y servicios a empresas de servicios de electricidad, muchas de ellas empresas de servicios públicos estatales extranjeras, para la administración de redes en la generación, transmisión y distribución de energía eléctrica. A cambio por los sobornos, de acuerdo con el expediente judicial, ABB NM recibió contratos por más de $81 millones de dólares. ABB Inc. admitió que los pagos de sobornos fueron realizados a través de diversos intermediarios, incluida una empresa mexicana que era representante de ventas de ABB NM en México para sus contratos con CFE. ABB Ltd y ABB Inc. revelaron voluntariamente la conducta indebida al Departamento de Justicia y han cooperado plenamente con la investigación.

Fernando Maya Basurto era un director de la empresa mexicana. Se declaró culpable el 16 de noviembre de 2009 en una acusación criminal de un cargo que lo acusaba de su papel en la conspiración. En su declaración de culpabilidad, Basurto admitió que, mientras fue representante de ventas de ABB NM, conspiró con terceros para realizar pagos corruptos a funcionarios de CFE, ayudó a lavar el dinero de los sobornos, y participó en un encubrimiento para obstruir las investigaciones del Departamento de Justicia y la Comisión de Títulos y Valores de EE.UU. [U.S. Securities and Exchange Commission (SEC)].

El 16 de noviembre de 2009, John Joseph O’Shea, el ex gerente general de ABB NM, fue acusado en una acusación formal compuesta por 18 cargos de conspiración, violaciones de la FCPA, lavado de dinero internacional y falsificación de registros asociados a su supuesto papel en el ardid de soborno. Una acusación formal es apenas un alegato y O’Shea es considerado inocente hasta que se pruebe su culpabilidad más allá de la duda razonable. Aún no se establecido una fecha para el juicio.

ABB Ltd realizó un acuerdo de aplazamiento de enjuiciamiento hoy y aceptó que se acusara formalmente a su subsidiaria de Jordán, ABB Ltd - Jordàn, de un cargo de conspiración para cometer fraude electrónico y violación de las disposiciones sobre libros y registros de la FCPA, y aceptó pagar una multa criminal de $1.9 millones de dólares.

ABB Ltd admitió que ABB Ltd - Jordàn acordó pagar comisiones ilícitas al ex gobierno Iraquí en conexión con contratos para vender vehículos a Irak bajo el programa Petróleo por Alimentos de N.U. De acuerdo con el expediente judicial, entre 2000 y 2004, ABB Ltd - Jordàn pagó, o hizo que se pagaran, más de $300,000 dólares en comisiones ilícitas al ex gobierno iraquí para obtener contratos con la Compañía General de Producción de Energía Eléctrica, Baghdad Mayoralty, y la Compañía Estatal de Distribución de Electricidad de Baghdad, todas las cuales eran compañías regionales de la Comisión Iraquí de Electricidad, una dependencia gubernamental de Irak. Como resultado, ABB Ltd - Jordàn y su subsidiaria recibieron 11 órdenes de compra por equipos eléctricos y servicios por un valor de más de $5.9 millones de dólares.

Bajo los términos del acuerdo de tres años de duración, ABB acordó cooperar plenamente con las investigaciones realizadas por autoridades estadounidenses y extranjeras acerca de los pagos corruptos y adherir a un conjunto de obligaciones de cumplimiento empresarial y emisión de informes mejoradas, las que incluyen las recomendaciones de un consultor en cumplimiento independiente.

En un caso asociado, ABB Ltd realizó un acuerdo conciliatorio hoy con la SEC con respecto a una demanda, y aceptó pagar más de $39 millones de dólares en devolución, intereses previos al enjuiciamiento y multas civiles.

Estuvo a cargo de la acusación en el caso la Abogada Litigante Nicole J. Mrazek de la Sección de Fraude de la División Criminal. El caso fue investigado por la Oficina Local de Houston del FBI y la Oficina Local de Houston de IRS-CI. El Departamento reconoce y expresa su gratitud por la significativa asistencia brindada por el personal de la SEC en el transcurso de la investigación.

WASHINGTON – ABB Ltd, a Swiss corporation, and two of its subsidiaries have resolved charges related to violations of the Foreign Corrupt Practices Act (FCPA), announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; Richard C. Powers, Special Agent-in-Charge of the FBI’s Houston Field Office; and Rodney E. Clarke, Special Agent-in-Charge of the Internal Revenue Service - Criminal Investigation’s (IRS-CI) Houston Field Office.

At the plea hearing today before U.S. District Court Judge Lynn N. Hughes in the Southern District of Texas, ABB Ltd’s U.S. subsidiary, ABB Inc., pleaded guilty to a criminal information charging it with one count of violating the anti-bribery provisions of the FCPA and one count of conspiracy to violating these provisions of the FCPA. The court imposed a sentence that included a criminal fine of $17.1 million.

As part of ABB Inc.’s plea, it admitted that one of its business units based in Sugar Land, Texas, ABB Network Management (ABB NM), paid bribes from 1997 to 2004 that totaled approximately $1.9 million to officials at Comisión Federal de Electricidad (CFE), a Mexican state-owned utility company. ABB NM’s primary business was to provide products and services to electrical utilities, many of them foreign state-owned utilities, for network management in power generation, transmission and distribution. In exchange for the bribe payments, according to court documents, ABB NM received contracts worth more than $81 million in revenue. ABB Inc. admitted that the bribe payments were made through various intermediaries, including a Mexican company that served as ABB NM’s sales representative in Mexico on its contracts with CFE. ABB Ltd and ABB Inc. voluntarily disclosed the misconduct to the Department of Justice and have cooperated fully with the investigation.

Fernando Maya Basurto was a principal of the Mexican company. He pleaded guilty on Nov. 16, 2009, to a one-count criminal information charging him for his role in the conspiracy. In his plea, Basurto admitted that while he acted as a sales representative for ABB NM, he conspired with others to make corrupt payments to CFE officials, helped launder the bribe monies, and engaged in a cover up to obstruct the investigations of the Department of Justice and the U.S. Securities and Exchange Commission (SEC).

On Nov. 16, 2009, John Joseph O’Shea, ABB NM’s former general manager, was charged in an 18-count indictment with conspiracy, FCPA violations, international money laundering and falsification of records related to his alleged role in the bribery scheme. An indictment is merely an accusation, and O’Shea is presumed innocent until and unless proven guilty beyond a reasonable doubt. A trial date has not yet been set.

ABB Ltd entered into a deferred prosecution agreement today and agreed to the filing of a criminal information charging its Jordanian subsidiary, ABB Ltd – Jordan, with one count of conspiracy to commit wire fraud and to violate the books and records provisions of the FCPA, and agreed to pay a criminal penalty of $1.9 million.

ABB Ltd admitted that ABB Ltd - Jordan agreed to pay kickbacks to the former Iraqi government in connection with contracts to sell vehicles to Iraq under the U.N.’s Oil for Food program. According to court documents, from 2000 to 2004, ABB Ltd - Jordan paid, or caused to be paid, more than $300,000 in kickbacks to the former Iraqi government to secure contracts with the General Company for Electricity Energy Production, the Baghdad Mayoralty, and the State Company Baghdad Electricity Distribution, all of which were regional companies of the Iraqi Electricity Commission, an Iraqi government agency. As a result, ABB Ltd - Jordan and its subsidiary received 11 purchase orders for electrical equipment and services worth more than $5.9 million.

Under the terms of the three-year agreement, ABB Ltd agreed to fully cooperate with investigations by U.S. and foreign authorities of the company’s corrupt payments and to adhere to a set of enhanced corporate compliance and reporting obligations, which include the recommendations of an independent compliance consultant.

In a related matter, ABB Ltd reached a settlement today with the SEC on a complaint, and agreed to pay more than $39 million in disgorgement, pre-judgment interest and civil penalties.

The case was prosecuted by Senior Trial Attorney Nicola J. Mrazek of the Criminal Division’s Fraud Section. The case was investigated by the FBI’s Houston Field Office and the IRS-CI Houston Field Office. The department acknowledges and expresses its appreciation for the significant assistance provided by the staff of the SEC during the course of this investigation.

WASHINGTON - Murphy Oil USA has agreed to spend more than $142 million to install new and upgraded pollution reduction equipment at its two petroleum refineries in Wisconsin and Louisiana as part of a comprehensive Clean Air Act settlement, the Justice Department and Environmental Protection Agency (EPA) announced today. The settlement also requires Murphy to pay a $1.25 million civil penalty and spend an additional $1.5 million on a supplemental environmental project.

The El Dorado, Ark.-based company’s refineries are located in Superior, Wis., and in Meraux, La. The new air pollution control technologies and other measures to be implemented at both refineries will reduce emissions of sulfur dioxide (SO2) and nitrogen oxide (NOx) by nearly 1,400 tons per year once all controls are installed. The settlement will also reduce emissions of volatile organic compounds, particulate matter and carbon monoxide. These pollutants can cause serious respiratory problems and exacerbate cases of childhood asthma, among other adverse health effects.

In addition to the new pollution controls at both refineries, as a supplemental environmental project Murphy will install covers on two wastewater tanks at the Meraux refinery to control volatile organic compounds (VOC) emissions, and which will also reduce odors from the tanks. To address additional concerns of citizens living adjacent to the Meraux refinery, Murphy also will be installing and operating an ambient air monitoring station in the community, as well as implementing several other projects, including noise abatement and dust control measures.

“The Justice Department is committed to vigorously enforcing our nation’s environmental laws,” said Ignacia S. Moreno, Environment and Natural Resource Division Assistant Attorney General. “Nationwide, many refineries are located in economically distressed or disadvantaged communities. Settlements like this one, that require the installation of pollution reduction equipment, result in cleaner, safer environments for affected communities.”

“EPA is committed to reducing toxic air pollution from sources that have an impact on the health of communities,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “This settlement, which is the result of cooperative efforts by State and Federal officials in both states, is good news for the residents of communities living near these refineries, who will be able to breathe easier knowing that the air in their communities will be cleaner.”

This settlement is the latest in a series of “global” multi-issue, multi-facility settlements being pursued by EPA in the refining sector. In March of this year, similar settlements were reached with Shell refineries located in Alabama, Louisiana and Puerto Rico. With today’s settlement, 104 refineries operating in 31 states and territories are now covered by global settlements, representing more than 90 percent of the nation’s refining capacity. The first of EPA’s comprehensive refinery settlements was reached in 2000.

Murphy had previously entered into a settlement addressing Clean Air Act violations at its Superior refinery in 2002, after a 10-day trial. Today’s settlement will replace the 2002 settlement.

“We’re pleased that this new consent decree will further reduce sulfur dioxide emissions from the Superior Refinery, which was largely the focus of the earlier contested proceedings,” said John W. Vaudreuil, U.S. Attorney for the Western District of Wisconsin. “This agreement is a win-win for the citizens of Superior and the environment.”

The states of Wisconsin and Louisiana actively participated in and are joining in the settlement with Murphy, which was filed with the U.S. District Court for the Western District of Wisconsin. The settlement is subject to a 30-day public comment period and approval by the federal court.

More information on the settlement: www.epa.gov/compliance/resources/cases/civil/caa/murphyoil.html

More information on EPA’s Petroleum Refinery Initiative: www.epa.gov/compliance/resources/cases/civil/caa/oil/ .

WASHINGTON - Murphy Oil USA ha aceptado gastar más de $142 millones de dólares en la instalación de equipos de reducción de contaminación nuevos y actualizados en sus dos refinerías de petróleo en Wisconsin y Louisiana como parte de un acuerdo conciliatorio asociado a la Ley de Aire Limpio, anunciaron hoy el Departamento de Justicia y la Agencia de Protección Ambiental [Environmental Protection Agency (EPA)]. El acuerdo conciliatorio también exige que Murphy pague una multa civil de $1.25 millones de dólares e invierta $1.5 millones de dólares adicionales en un proyecto ambiental complementario.

Las refinerías de la empresa con sede en El Dorado, Ark. están ubicadas en Superior, Wis. y en Meraux, La. Las nuevas tecnologías de control de la contaminación del aire y otras medidas a ser implementadas en ambas refinerías reducirán las emisiones de dióxido de azufre (SO2) y óxido de nitrógeno (NOx) en casi 1,400 toneladas por año, una vez instalados todos los controles. El acuerdo conciliatorio también reducirá las emisiones de compuestos orgánicos volátiles, materia en partículas y monóxido de carbono. Estos contaminantes causan graves problemas respiratorios y agravan los casos de asma infantil, entre otros efectos adversos a la salud.

Además de los nuevos controles de contaminación en ambas refinerías, como proyecto ambiental complementario, Murphy instalará cubiertas en dos tanques de aguas residuales en la refinería de Meraux para controlar las emisiones de compuestos orgánicos volátiles (COV), las que también reducirán los olores provenientes de los tanques. Para tratar de las inquietudes adicionales de ciudadanos que viven en los alrededores de la refinería de Meraux, Murphy también instalará y colocará en funcionamiento una estación de observación del aire del ambiente en la comunidad, e implementará varios otros proyectos, incluidas medidas de reducción de ruidos y control de polvo.

"El Departamento de Justicia se empeña en hacer valer enérgicamente las leyes ambientales de nuestra nación", dijo Ignacia S. Moreno, Secretaria de Justicia Auxiliar de la División de Medio Ambiente y Recursos Naturales. "En todo el país, muchas refinerías están ubicadas en comunidades con dificultades económicos o en desventaja. Acuerdos como éste, que requieren la instalación de equipos de reducción de la contaminación, resultan en ambientes más limpios y más seguros para las comunidades afectadas".

"La EPA se compromete a reducir la contaminación tóxica del aire de fuentes que afecten la salud de las comunidades", dijo Cynthia Giles, Administradora Auxiliar de la Oficina de Aplicación Legal y Garantía de Cumplimiento. "Este acuerdo conciliatorio, el que es el resultado de la labor conjunta de funcionarios estatales y federales en ambos estados, es una buena noticia para los residentes de comunidades próximas a estas refinerías, quienes podrán respirar mejor sabiendo que el aire en sus comunidades será más limpio".

Este acuerdo conciliatorio es el más reciente de una serie de acuerdos conciliatorios multi-problemáticos, multi-instalaciones "globales" pretendidos por la EPA en el sector de las refinerías. En marzo de este año, se lograron acuerdos conciliatorios similares con refinerías de Shell ubicadas en Alabama, Louisiana y Puerto Rico. Con el acuerdo conciliatorio de hoy, 104 refinerías que operan en 31 estados y territorios están cubiertas actualmente por acuerdos conciliatorios globales, lo que representan más del 90 por ciento de la capacidad de refinería del país. El primer acuerdo conciliatorio integral de la EPA fue realizado en el 2000.

Murphy había realizado anteriormente un acuerdo conciliatorio para la resolución de violaciones de la Ley de Aire Limpio en su refinería de Superior en el 2002, después de un enjuiciamiento de 10 días de duración. El acuerdo conciliatorio de hoy sustituirá el acuerdo realizado en el 2002.

"Nos complace que este nuevo decreto por consentimiento reducirá aun más las emisiones de dióxido de azufre de la Refinería de Superior, la cual fue el foco principal de los procesos disputados anteriormente", señaló John W. Vaudreuil, Fiscal Federal para el Distrito Oeste de Wisconsin. "En este acuerdo, los ciudadanos de Superior y el medio ambiente ganan".

Los estados de Wisconsin y Louisiana participaron activamente y están uniéndose al acuerdo conciliatorio con Murphy, que fue presentado ante el Tribunal Federal de Distrito para el Distrito Oeste de Wisconsin. El acuerdo conciliatorio está sujeto a un período de comentario público de 30 días y a la aprobación del tribunal federal.

Más información sobre el acuerdo conciliatorio: www.epa.gov/compliance/resources/cases/civil/caa/murphyoil.html

Más información sobre la Iniciativa de Refinerías de Petróleo de la EPA: www.epa.gov/compliance/resources/cases/civil/caa/oil/ .

WASHINGTON – Paul Edward Pavulak, 66, of New Castle, Del., was convicted today by a federal jury in Wilmington of child exploitation offenses, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney for the District of Delaware David C. Weiss.

Pavulak was convicted of one count of attempted production of child pornography, one count of attempted enticement and coercion of a minor to engage in sexual activity, one count of possession of child pornography, one count of failure to register and update a registration as a sex offender, and one count of committing a felony offense involving a minor while being required to register as a sex offender. Pavulak was originally indicted on these five counts on April 16, 2009.

According to evidence presented at trial, from September 2008 to January 2009, Pavulak developed an online relationship with a young woman in the Philippines who had a two-year-old daughter. In December 2008, Pavulak traveled to the Philippines and met the woman and her daughter. Using his digital camera, Pavulak produced a sexually explicit movie of himself and the woman, and described the movie as the two-year-old girl’s "training video." Following his return to the United States in January 2009, Pavulak attempted to produce child pornography of the two-year-old girl via a web camera during an online instant chat message exchange with the woman.

On Jan. 19, 2009, the Delaware State Police executed a search warrant at a concrete company’s office in New Castle, where Pavulak had been living and working. During the search, Delaware State Police seized digital media evidence, including computers, a camera and a mobile phone. Upon review of the seized materials, investigators discovered thousands of images depicting the sexual abuse of minors on the computers. These images included depictions of children ranging in age from infancy to mid-teens engaging in sexual acts with adult males. On a mobile phone and a computer, the investigators also found sexually explicit communications between Pavulak and the woman regarding her daughter, in which they discussed having the woman prepare the child to engage in sexual activity with Pavulak when he returned to the Philippines.

Evidence at trial established that Pavulak was convicted in 1998 and 2005 of second degree unlawful sexual contact with minors. As a result of these convictions, federal and state law required Pavulak to register as a sex offender and to provide the registry with the address of his employer and his residence. Between July 2008 and January 2009, Pavulak consistently reported to the Delaware State Police that he was unemployed and that he lived in a motel. Evidence at trial showed that Pavulak worked for a concrete company owned by his children and also resided in a room at the company’s office.

Due to his prior convictions and his commission of these offenses while being required to register as a sex offender, Pavulak faces a mandatory minimum sentence of 45 years in prison and a fine up to $250,000.

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

The case is being prosecuted by Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware, and Trial Attorneys Bonnie L. Kane and Andrew McCormack of CEOS. The case was investigated by the Delaware State Police’s Child Predator Task Force and High Technology Crimes Unit, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations.

WASHINGTON – A federal grand jury has indicted Christopher Shane Montgomery, a resident of Bastrop, La., for conspiring to commit a hate crime, tampering with a witness and lying to federal authorities, announced the Justice Department and the U.S. Attorney’s Office for the Western District of Louisiana. If convicted of these charges, Montgomery faces up to 40 years in prison.

The four-count indictment alleges that on or about Nov. 6, 2007, Shane Montgomery and another person not identified in the indictment tied a noose around the neck of a dead raccoon and hung the raccoon and noose from a flagpole at Beekman Junior High School in Bastrop in order to intimidate African-American students attending the school under a court-ordered busing policy. Montgomery is also charged for lying on two occasions to an FBI agent investigating the hate crime and for tampering with a witness during the investigation.

This case is being investigated by the FBI. This case is being prosecuted by Trial Attorney Kevonne Small of the Civil Rights Division and Assistant U.S. Attorney Mary Mudrick of the Western District of Louisiana.

An indictment is only an accusation. The defendant is presumed innocent until proven guilty.

WASHINGTON – The Justice Department today announced that the Housing Authority for the city of Royston, Ga., (RHA) has agreed to pay up to $270,000 to resolve allegations that it engaged in a pattern or practice of discriminating against applicants for housing and tenants based on race. The RHA is a public housing authority that provides housing for persons of low income in Hart County and Franklin County, Ga. Currently the RHA owns and maintains seven housing complexes in Royston.

The settlement was filed today in the U.S. District Court in Athens, Ga., in conjunction with a complaint made by the Justice Department under the Fair Housing Act. The complaint alleges that the RHA maintained racially segregated housing by steering and assigning applicants to vacant units based on race, rather than in order of their placement on the RHA’s waiting list. The complaint also alleges that the RHA subjected African-American tenants to inferior terms and conditions of rental.

"Everyone, including those who seek public assistance, has the right to access housing free from racial discrimination," said Thomas E. Perez, Assistant Attorney General for the Justice Department's Civil Rights Division. "The department will continue its vigorous enforcement of the Fair Housing Act."

"Racial discrimination is both wrong and illegal, and is especially invidious when conducted by an agency acting in a quasi-governmental capacity," said Acting U.S. Attorney for the Middle District of Georgia, G.F. Peterman, III. "This case is important both to those injured by these actions and as an example that the U.S. Attorney’s Office, acting with the Civil Rights Division of the Department of Justice, will diligently pursue appropriate remedies when such discrimination is found to exist."

Upon court approval, the settlement, which is in the form of a consent decree, will require the RHA to implement nondiscriminatory policies and procedures to ensure compliance with the Fair Housing Act and to ensure that RHA housing units are made available for rent on an equal basis and on the same terms and conditions for all persons, irrespective of race. The decree also requires that if RHA builds additional units, they are to be located in areas that do not further racial segregation. The RHA will also provide training to employees responsible for making housing decisions on the nondiscriminatory policies and procedures, the consent decree and the Fair Housing Act.

In addition, the RHA will establish a $270,000 fund to compensate individuals who suffered damages as a result of the RHA's conduct. The RHA will develop a process to allow tenants who were assigned to complex on a discriminatory basis to request a transfer to another complex if they desire.

The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777.

WASHINGTON – The Justice Department and the Department of Transportation announced $55,000 in fines against Tornado Bus Company Inc., of Dallas, for violating passenger carrier accessibility requirements under the Americans with Disabilities Act (ADA).  In addition to the fine, a consent agreement reached with the Federal Motor Carrier Safety Administration (FMCSA) and the Justice Department requires the bus company to upgrade its fleet to meet ADA requirements by February 2011 or have its operating authority revoked.

An extensive investigation conducted by FMCSA uncovered that Tornado had only one accessible bus in a fleet of 53 buses, while ADA regulations require that at least 50 percent of a carrier’s vehicles must be accessible. The investigation also found the company had purchased new non-accessible buses, failed to train employees on interacting with disabled passengers and failed to establish a wheelchair lift maintenance program. The fine and citations came as a result of FMCSA’s ADA strike force held in May 2010.

"At the foundation of our society is the ability to live independently and move freely," said Thomas E. Perez, Assistant Attorney General of the Civil Rights Division.  "This freedom is no less important to people with disabilities. We are grateful FMCSA takes accessibility requirements seriously and has reached this agreement."

"Adhering to ADA accessibility requirements is not a choice, but a high standard that every commercial bus operator must follow," said FMCSA Administrator Anne S. Ferro. "FMCSA will continue to work closely with the Department of Justice to vigorously enforce ADA compliance so that all travelers can enjoy destinations across America by way of commercial bus."

 In February 2009, FMCSA and the Justice Department entered into a memorandum of understanding concerning the enforcement of commercial passenger buses. The memorandum between the two agencies was included in the Over-the-Road Bus Transportation Accessibility Act of 2007 and is designed to ensure consistent ADA enforcement nationwide.      

More information about the Civil Rights Division and the laws it enforces is available at the website www.justice.gov/crt .  The consent agreement with Tornado Bus Company can be found at www.fmcsa.dot.gov/about/news/news-releases/2010/Consent-Agreement-09-10-2010-(FMCSA-DOJ)-508.pdf.

WASHINGTON – Detroit-area resident Hassan Akhtar pleaded guilty today for his role in managing a home health care fraud scheme, the Departments of Justice and Health and Human Services (HHS) announced .  

Akhtar, 26, pleaded guilty before U.S. District Judge Denise Page Hood of the Eastern District of Michigan to one count of conspiracy to commit health care fraud.  At sentencing, scheduled for Jan. 27, 2011, Akhtar faces a maximum penalty of 10 years in prison and a $250,000 fine.

According to plea documents, Akhtar began working for co-conspirator Muhammad Shahab in April 2008. In June 2008, Shahab asked Akhtar if he wanted to assist Shahab in setting up and operating a new home health agency. Akhtar agreed to the arrangement. Shahab helped finance and establish All American Home Care Inc. located in Oak Park, Mich., which also purported to provide home health services. Akhtar was the office administrator and ran the day-to-day operations at All American.

Akhtar admitted that he and his co-conspirators at All American billed Medicare for home health visits that were medically unnecessary and/or never provided. To deceive the Medicare program, Akhtar and his associates created fictitious therapy files that appeared to document physical therapy services provided to Medicare beneficiaries, when in fact no such services had taken place. Akhtar admitted that he knew the fictitious services reflected in the files were billed to Medicare by All American.

Akhtar also admitted that he knew his co-conspirators paid cash kickbacks and other inducements to Medicare beneficiaries, in exchange for the beneficiaries’ Medicare numbers and signatures on documents falsely indicating that they had received home health services from All American. In addition, Akhtar’s co-conspirators secured physician referrals for home health services through the payment of kickbacks to physicians or individuals associated with physicians. Akhtar and his co-conspirators also employed several physical therapists and physical therapy assistants to sign medical documentation necessary to commence Medicare home health billing processes, including initial payments and payments for each visit to a Medicare beneficiary. Akhtar admitted that he knew the physical therapists and physical therapy assistants were not actually conducting a large majority of the visits or treating a large majority of the patients.

Between approximately June 2008 and October 2009, Akhtar and/or his co-conspirators at All American submitted claims to the Medicare program resulting in approximately $4.65 million for physical and occupational therapy services that were never rendered or were medically unnecessary.

Shahab pleaded guilty in February 2010 to one count of conspiracy to commit health care fraud, and is awaiting sentencing.

Today’s guilty plea was announced by Assistant Attorney General Lanny A. Breuer; 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 810 individuals who collectively have falsely billed the Medicare program for more than $1.85 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 – China Airlines Ltd. has agreed to plead guilty and to pay a $40 million criminal fine for its role in a conspiracy to fix prices in the air transportation industry, the Department of Justice announced today.

According to a one-count felony charge filed today in U.S. District Court for the District of Columbia, Taiwan-based China Airlines engaged in a conspiracy to fix the cargo rates charged to customers for international air cargo shipments to and from the United States from at least as early as January 2001, until at least Feb. 14, 2006The department said that China Airlines joined an ongoing conspiracy among cargo carriers that began at least as early as Jan. 1, 2000. Under the plea agreement, which is subject to court approval, China Airlines has agreed to cooperate with the department’s ongoing antitrust investigation.

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

According to the charge, China Airlines carried out the conspiracy by agreeing during meetings and other communications on certain components of the cargo rates to be charged for shipments on certain routes to and from the United States and by levying cargo rates in accordance with the agreements reached. As part of the conspiracy, China Airlines monitored and enforced adherence to the agreed-upon cargo rates.

China Airlines is charged with price fixing in violation of the Sherman Act, which carries a maximum fine of $100 million for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Including today’s charge, as a result of this investigation, a total of 18 airlines and eight executives have been charged in the Justice Department’s ongoing investigation into price fixing in the air transportation industry. To date, more than $1.6 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time. Charges are pending against the remaining four executives.

The airlines that have pleaded guilty, or have agreed to plead guilty, as a result of the department’s ongoing investigation into the air transportation industry are: British Airways Plc, Korean Air Lines Co. Ltd., Qantas Airways Limited, Japan Airlines International Co. Ltd., Martinair Holland N.V., Cathay Pacific Airways Limited, SAS Cargo Group A/S, Société Air France, Koninklijke Luchtvaart Maatschappij N.V. (KLM Royal Dutch Airlines), EL AL Israel Airlines Ltd., LAN Cargo S.A., Aerolinhas Brasileiras S.A., Cargolux Airlines International S.A., Nippon Cargo Airlines Co. Ltd., Northwest Airlines LLC and Asiana Airlines Inc. Additionally, on Sept. 2, 2010, Polar Air Cargo LLC was charged in this investigation and is scheduled to enter a guilty plea and be sentenced on Oct. 15, 2010.

Airline executives who have pleaded guilty as a result of the investigation are Bruce McCaffrey of Qantas, Keith Packer of British Airways, Franciscus Johannes de Jong of Martinair and Timothy Pfeil of SAS Cargo. On Aug. 12, 2009, Jan Lillieborg, a citizen and resident of Sweden and former vice president of global sales for SAS Cargo, was indicted for participating in a conspiracy to suppress and eliminate competition by allocating customers and coordinating surcharge increases for international air shipments to and from the United States. On Aug. 26, 2010, Joo Ahn Kang, former president of Asiana, and Chung Sik Kwak, former vice president of the Americas region of Asiana, both citizens and residents of the Republic of Korea, were indicted for participating in a conspiracy to suppress and eliminate competition by fixing passenger airfares for travel between the United States and Korea. On Sept. 21, 2010, Maria Christina "Meta" Ullings, senior vice president of Cargo Sales and Marketing of Martinair Holland N.V., was indicted for participating in a conspiracy to fix and coordinate certain surcharges on air cargo shipments to and from the United States. Trial dates have yet to be scheduled for these individuals.

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

WASHINGTON – Tres residentes del área de Miami fueron sentenciados a prisión hoy por su participación en un ardid de fraude contra Medicare de $22 millones de dólares realizados a través de dos agencias de servicios médicos a domicilio de Miami, ABC Home Health Care Inc. y Florida Home Health Care Providers Inc., anunciaron el Departamento de Justicia y el Departamento de Salud y Servicios Humanos [Health and Human Services (HHS)]. Una cuarta persona fue sentenciada a detención domiciliaria y libertad bajo supervisión por su participación en el ardid.

Los cuatro demandados fueron sentenciados por el Juez Federal de Distrito Alan S. Gold en Miami.

• Alejandro Hernàndez Quirós, 33, fue sentenciado a 78 meses en prisión y tres años de libertad bajo supervisión;
• Vicenta Tellechea, 64, fue sentenciada a 69 meses en prisión y tres años de libertad bajo supervisión;
• Carlos Castañeda, 44, fue sentenciado a 40 meses en prisión y tres años de libertad bajo supervisión; y
• Javier Zambrana, 25, fue sentenciado a tres años de libertad condicional, que incluyen 12 meses de detención domiciliaria.

Tellechea, Castañeda, Quirós y Zambrana se declararon culpables en 2009 de un cargo de conspiración para cometer fraude de servicios médicos. Además, Tellechea se declaró culpable de un cargo de pagar comisiones ilícitas y Quirós se declaró culpable de tres cargos de pagar comisiones ilícitas.

Según el expediente judicial, Quirós era copropietario de ABC. Quirós admitió que, además de su interés en ABC como propietario, también era reclutador de pacientes para la agencia y aceptó reclutar a beneficiarios de Medicare con el fin de facturar al programa Medicare terapias físicas y servicios médicos a domicilio que no eran necesarios médicamente y/o no se brindaron. Quirós admitió pagar comisiones ilícitas y sobornos a los beneficiarios de Medicare que había reclutado. También admitió que ABS facturó fraudulentamente al programa Medicare más de $17 millones de dólares y que Medicare pagó más de $11 millones de dólares de esos reclamos.

En su audiencia de declaración de culpabilidad, Castañeda admitió haber reclutado beneficiarios de Medicare para ABC y Florida Home Health ofreciendo comisiones ilícitas y sobornos a cambio de la información de los beneficiarios, que se usaba para facturar fraudulentamente al programa Medicare por servicios médicos y terapias a domicilio innecesarios. Castañeda también admitió que durante su participación en el ardid, las facturaciones fraudulentas al programa Medicare ascendieron a un total de más de $5.5 millones de dólares correspondientes a Florida Home Health. Medicare pagó más de $4 millones de dólares de esos reclamos a Florida Home Health.

Según el expediente judicial, Tellechea era copropietaria de Florida Home Health. Fue responsable de aproximadamente $4 millones de dólares de pérdidas intencionales para el programa Medicare. En su audiencia de declaración de culpabilidad, Tellechea admitió que entre octubre de 2007 y marzo de 2009, participó en una conspiración para defraudar a Medicare que incluyó facturar al programa Medicare por servicios médicos y terapias a domicilio  médicamente innecesarios y que a menudo no se brindaban. Asimismo, Tellechea admitió haber fundado y controlado Florida Home Health con sus coconspiradores con el fin de defraudar al programa Medicare.

Zambrana fue el propietario nominado de ABC aproximadamente entre enero de 2006 y agosto de 2007. Zambrana admitió haber firmado documentos y solicitudes de proveedores de Medicare para ABC, alegando ser el verdadero propietario de la agencia, cuando en realidad los verdaderos propietarios eran sus padres, Gladys Zambrana y Enrique Pérez. El 13 de noviembre de 2009, Gladys Zambrana y Pérez se declararon culpables por su participación en el ardid. La lectura de su sentencia está programada para el mes próximo.

En conjunto con el caso criminal, el 24 de junio de 2009, la Fiscalía Federal del Distrito Sur de Florida entabló una demanda civil por agravio judicial bajo la ley de agravio por fraude y obtuvo una orden de restricción temporal que congeló los activos de ABC, Florida Home Health, Gladys Zambrana, Javier Zambrana, Pérez, Quirós, Castañeda y Tellechea. Se emitió un fallo final por incomparecencia contra ABC y Florida Home Health en agosto de 2009 y contra los demás individuos en diciembre de 2009.

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

Está a cargo de la acusación criminal en el caso el Abogado Litigante N. Nathan Dimock de la Sección de Fraude de la División Criminal. Estuvo a cargo del caso civil el Fiscal Federal Auxiliar Ted L. Radway de la Fiscalía Federal para el Distrito Sur de Florida. El caso fue investigado por el Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)] y la Oficina del Inspector General del Departamento de Salud y Servicios Humanos de los EE.UU.

Desde su creación en marzo de 2007, las operaciones de la Fuerza de Ataque al Fraude contra Medicare en siete distritos obtuvieron las acusaciones formales de más de 810 individuos que, en conjunto, facturaron falsamente al programa Medicare más de $1.85 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 màs 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 – Three Miami-area residents were sentenced to prison today for their participation in a $22 million Medicare fraud scheme operated through two Miami home health agencies, ABC Home Health Care Inc. and Florida Home Health Care Providers Inc., announced the Departments of Justice and Health and Human Services (HHS). A fourth individual was sentenced to home detention and supervised release for his participation in the scheme.

All four defendants were sentenced by U.S. District Court Judge Alan S. Gold in Miami.

• Alejandro Hernandez Quiros, 33, was sentenced to 78 months in prison and three years of supervised release;
• Vicenta Tellechea, 64, was sentenced to 69 months in prison and three years of supervised release;
• Carlos Castaneda, 44, was sentenced to 40 months in prison and three years of supervised release; and
• Javier Zambrana, 25, was sentenced to three years of probation, including 12 months of home detention.

Tellechea, Castaneda, Quiros and Zambrana each pleaded guilty in 2009 to one count of conspiracy to commit health care fraud. In addition, Tellechea pleaded guilty to one count of paying kickbacks and Quiros pleaded guilty to three counts of paying kickbacks.

According to court documents, Quiros was a part owner of ABC. Quiros admitted that in addition to his ownership interest in ABC, he was also a patient recruiter for the agency and agreed to recruit Medicare beneficiaries for the purpose of billing the Medicare program for physical therapy and home health care services that were not medically necessary and/or were not provided. Quiros admitted to paying kickbacks and bribes to the Medicare beneficiaries whom he recruited. He also admitted that ABC fraudulently billed more than $17 million to the Medicare program and that Medicare paid more than $11 million of those claims.

Castaneda admitted in his plea hearing that he recruited Medicare beneficiaries for ABC and Florida Home Health by offering kickbacks and bribes in return for the beneficiaries’ information, which was used to fraudulently bill the Medicare program for unnecessary home health and therapy services. Castaneda also admitted that during his participation in the scheme, fraudulent billings to the Medicare program totaled more than $5.5 million for Florida Home Health. Medicare paid more than $4 million of those claims to Florida Home Health.

According to court documents, Tellechea was a part owner of Florida Home Health. She was responsible for approximately $4 million in intended losses to the Medicare program. At her plea hearing, Tellechea admitted that from October 2007 through March 2009, she engaged in a conspiracy to defraud Medicare that involved billing the Medicare program for home health and therapy services that were medically unnecessary and often times not provided. Tellechea further admitted that she established and took control of Florida Home Health along with her co-conspirators for the purpose of defrauding the Medicare program.

Zambrana was the nominee owner of ABC from approximately January 2006 through August 2007. Zambrana admitted that he signed documents and Medicare provider applications for ABC, purporting to be the true owner of the agency, when the true owners were in fact his parents, Gladys Zambrana and Enrique Perez. On Nov. 13, 2009, Gladys Zambrana and Perez pleaded guilty for their participation in the scheme and are scheduled to be sentenced next month.

In conjunction with the criminal case, on June 24, 2009, the U.S. Attorney’s Office for the Southern District of Florida filed a civil complaint for injunctive relief under the fraud injunction statute and obtained a temporary restraining order freezing the assets of ABC, Florida Home Health, Gladys Zambrana, Javier Zambrana, Perez, Quiros, Castaneda and Tellechea. A final default judgment was entered against ABC and Florida Home Health in August 2009 and against the other individuals in December 2009.

 

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

The criminal case is being prosecuted by Trial Attorney N. Nathan Dimock of the Criminal Division’s Fraud Section. The civil case was handled by Assistant U.S. Attorney Ted Radway of the U.S. Attorney’s Office for the Southern District of Florida. The case was investigated by the FBI and the Department of Health and Human Services (HHS), Office of Inspector General.

Since their inception in March 2007, Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 810 individuals who collectively have falsely billed the Medicare program for more than $1.85 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 – Paul Magliocchetti, the founder and president of PMA Group Inc., a lobbying firm, pleaded guilty today in federal court in Arlington, Va., to making hundreds of thousands of dollars in illegal campaign contributions and making false statements to a federal agency, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride of the Eastern District of Virginia.

Magliocchetti was charged in an indictment unsealed on Aug. 5, 2010. According to the indictment, Magliocchetti orchestrated a scheme to make illegal conduit and corporate federal campaign contributions in an effort to enrich himself and PMA by increasing the firm’s influence, power and prestige among the firm’s current and potential clients as well as among the elected public officials to whom PMA and its lobbyists sought access. The federal campaigns that received these funds were unaware of Magliocchetti’s scheme.

Magliocchetti admitted that, from 2005 through 2008, he used members of his family, friends and PMA lobbyists to make unlawful campaign contributions. Aware of the strict limits on individual federal campaign contributions – and the outright ban on corporate contributions – Magliocchetti admitted that he instructed the conduits to write checks out of their personal checking accounts to specific candidates for federal office and that, for the purpose of making these contributions, Magliocchetti advanced funds to or reimbursed these individuals using personal and corporate monies. Magliocchetti also admitted that, through this scheme, he caused various federal campaign committees to unknowingly create and file false reports with the Federal Election Commission (FEC) regarding the contributions they had received. These reports, which the FEC made available to the public, falsely stated that the conduits had made contributions, when in fact the contributions were made by Magliocchetti or PMA.

"For years, Mr. Magliocchetti, by using conduit contributors, hid the fact that he and his company were donating significant funds to campaigns in violation of the federal election laws.  Mr. Magliocchetti, in an effort to cover his tracks, used family, friends and business associates to secretly funnel hundreds of thousands of dollars to political campaigns, all in an effort to enrich himself and increase his power and prestige," said Assistant Attorney General Lanny A. Breuer.  "This case is an important reminder to all who seek to evade the federal campaign finance laws that they will be prosecuted to the full extent of the law."

"Mr. Magliocchetti is answering for his brazen disregard for the law to achieve political influence and enrich himself," said U.S. Attorney MacBride. "Campaign finance laws give transparency to political contributions, and protect the public’s ability to see who’s really funding a campaign."

"Americans should be confident that elections are not being influenced by illegal campaign contributions. Those who undermine this process and use it to gain power and influence should be punished" said Shawn Henry, Assistant Director in Charge of the FBI’s Washington Field Office. "I’m proud of the diligent efforts put forth by special agents from the Defense Criminal Investigative Service and FBI who investigated this matter."

Magliocchetti pleaded guilty to one count each of making false statements, making illegal conduit contributions and making illegal corporate contributions. The maximum penalty for making false statements to a federal agency and making illegal campaign contributions from a corporation is five years in prison, and a $250,000 fine, to be followed by a term of up to three years of supervised release. The maximum penalty for making illegal campaign contributions in the name of another is five years in prison, a fine of not less than 300 percent of the amount involved in the violation and not more than the greater of $50,000 or 1,000 percent of the amount involved in the violation, and a three year term of supervised release. Magliocchetti is scheduled to be sentenced on Dec. 17, 2010.

This case is being prosecuted by Deputy Chief Justin V. Shur and Trial Attorneys M. Kendall Day and Kevin O. Driscoll of the Criminal Division’s Public Integrity Section, and by Assistant U.S. Attorney Mark D. Lytle of the U.S. Attorney’s Office for the Eastern District of Virginia. The case is being investigated by the FBI and the Defense Criminal Investigative Service.

WASHINGTON — The Department of Justice announced today that it has reached a settlement with six high technology companies – Adobe Systems Inc., Apple Inc., Google Inc., Intel Corp., Intuit Inc. and Pixar – that prevents them from entering into no solicitation agreements for employees. The department said that the agreements eliminated a significant form of competition to attract highly skilled employees, and overall diminished competition to the detriment of affected employees who were likely deprived of competitively important information and access to better job opportunities.

 

The Department of Justice’s Antitrust Division filed a civil antitrust complaint today in U.S. District Court for the District of Columbia, along with a proposed settlement that, if approved by the court, would resolve the lawsuit.

 

According to the complaint, the six companies entered into agreements that restrained competition between them for highly skilled employees. The agreements between Apple and Google, Apple and Adobe, Apple and Pixar and Google and Intel prevented the companies from directly soliciting each other’s employees. An agreement between Google and Intuit prevented Google from directly soliciting Intuit employees.

 

“The agreements challenged here restrained competition for affected employees without any procompetitive justification and distorted the competitive process,” said Molly S. Boast, Deputy Assistant Attorney General in the Department of Justice’s Antitrust Division. “The proposed settlement resolves the department’s antitrust concerns with regard to these no solicitation agreements.”

 

In the high technology sector, there is a strong demand for employees with advanced or specialized skills, the department said. One of the principal means by which high tech companies recruit these types of employees is to solicit them directly from other companies in a process referred to as, “cold calling.” This form of competition, when unrestrained, results in better career opportunities, the department said.

 

According to the complaint, the companies engaged in a practice of agreeing not to cold call any employee at the other company. The complaint indicates that the agreements were formed and actively managed by senior executives of these companies.

The complaint alleges that the companies’ actions reduced their ability to compete for high tech workers and interfered with the proper functioning of the price-setting mechanism that otherwise would have prevailed in competition for employees. None of the agreements was limited by geography, job function, product group or time period. Thus, they were broader than reasonably necessary for any collaboration between the companies, the department said.

 

The department said in its complaint:

• Beginning no later than 2006, Apple and Google executives agreed not to cold call each other’s employees. Apple placed Google on its internal “Do Not Call List,” which instructed employees not to directly solicit employees from the listed companies. Similarly, Google listed Apple among the companies that had special agreements with Google and were part of the “Do Not Cold Call” list;
• Beginning no later than May 2005, senior Apple and Adobe executives agreed not to cold call each other’s employees. Apple placed Adobe on its internal “Do Not Call List” and similarly, Adobe included Apple in its internal list of “Companies that are off limits”;
• Beginning no later than April 2007, Apple and Pixar executives agreed not to cold call each other’s employees. Apple placed Pixar on its internal “Do Not Call List” and senior executives at Pixar instructed human resources personnel to adhere to the agreement and maintain a paper trail;
• Beginning no later than September 2007, Google and Intel executives agreed not to cold call each other’s employees. In its hiring policies and protocol manual, Google listed Intel among the companies that have special agreements with Google and are part of the “Do Not Cold Call” list. Similarly, Intel instructed its human resources staff about the existence of the agreement; and
• In June 2007, Google and Intuit executives agreed that Google would not cold call any Intuit employee. In its hiring policies and protocol manual, Google also listed Intuit among the companies that have special agreements with Google and are part of the “Do Not Cold Call” list.

 

The proposed settlement, which if accepted by the court will be in effect for five years, prohibits the companies from engaging in anticompetitive no solicitation agreements. Although the complaint alleges only that the companies agreed to ban cold calling, the proposed settlement more broadly prohibits the companies from entering, maintaining or enforcing any agreement that in any way prevents any person from soliciting, cold calling, recruiting, or otherwise competing for employees. The companies will also implement compliance measures tailored to these practices.

 

Today’s complaint arose out of a larger investigation by the Antitrust Division into employment practices by high tech firms. The division continues to investigate other similar no solicitation agreements.

 

Adobe Systems Inc. is a Delaware corporation with its principal place of business in San Jose, Calif., and 2009 revenues of nearly $3 billion. Apple Inc. is a California corporation with its principal place of business in Cupertino, Calif., and 2009 revenues of more than $42 billion. Google Inc. is a Delaware corporation with its principal place of business in Mountain View, Calif., and 2009 revenues of more than $23 billion. Intel Inc. is a Delaware corporation with its principal place of business in Santa Clara, Calif., and 2009 revenues of more than $35 billion. Intuit Inc. is a Delaware corporation with its principal place of business in Mountain View, Calif., and 2009 revenues more than $3 billion. Pixar is a California corporation with its principal place of business in Emeryville, Calif.

 

The proposed settlement, along with the department’s competitive impact statement, will be published in The Federal Register, as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to James J. Tierney, Chief, Networks & Technology Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street N.W., Suite 7100, Washington D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.

WASHINGTON – The Justice Department announced that it filed a lawsuit today against Post Properties Inc., Post Apartment Homes L.P. and Post GP Holdings Inc. in the U.S. District Court for the Northern District of Georgia for failing to provide accessible features required by the Fair Housing Act and the Americans with Disabilities Act at multi-family housing developments in six states. The defendants’ principal place of business is in Atlanta.

Since March 13,1991, when the Fair Housing Act first required new multi family housing to contain accessible features, Post has designed, constructed and developed at least 50 multi family apartment complexes in Georgia, Texas, Florida, New York, North Carolina, Virginia and the District of Columbia, according to the complaint. Nineteen of these properties are in the Atlanta region. All together, the properties constitute more than 17,000 units. At least half of the units have elevators that serve every unit, requiring that each unit comply with the Fair Housing Act’s accessibility requirements. Post operates many of these properties as rentals.

The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. According to the complaint, Post designed and constructed many of the complexes without accessible routes leading into and through the apartment buildings. Many entranceways have steps and steep curb ramps making them inaccessible to a person using a wheelchair. In addition, certain housing units have narrow doors and hallways; kitchens and bathrooms that lack accessible clear floor space; and thermostats that are mounted too high to be accessible to a person using a wheelchair.

"Our federal laws guarantee that persons with mobility and other physical disabilities will have the same housing choices as persons without such disabilities," said Thomas Perez, Assistant Attorney General of the Civil Rights Division. "We will continue to pursue vigorously the principle that failing to design and construct multi-family housing with basic features of accessibility violates the law."

"Our office is committed to protecting the rights of citizens with disabilities and ensuring that they are fully integrated in our community, and have the housing choices that the law provides," said Sally Quillian Yates, the U.S. Attorney for the Northern District of Georgia, who joins in bringing the lawsuit.

The lawsuit seeks a court order requiring the defendants to modify the complexes to bring them into compliance with federal laws and prohibiting defendants from engaging in future discrimination. The lawsuit also seeks monetary damages to compensate victims and civil penalties to be paid to the government.

Fighting illegal housing discrimination is a top priority of the Justice Department. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743 ext. 91, or email the Justice Department at [email protected].

The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.

WASHINGTON A former U.S. Army staff sergeant pleaded guilty today to bribery in connection with a fuel theft scheme to solicit more than $400,000 in bribes from a government contractor in Afghanistan, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride of the Eastern District of Virginia.

 

Stevan Nathan Ringo, 26, of Marrero, La., pleaded guilty today before Judge T.S. Ellis, III in U.S. District Court in Virginia to one count of bribery. Ringo was originally charged in an indictment filed on Aug. 24, 2010. Ringo’s sentencing is set for Jan. 7, 2011.

 

According to court documents, Ringo was stationed at Forward Operating Base (FOB) Shank, a U.S. Army installation in the Logar Province of Eastern Afghanistan. FOB Shank supports U.S. military operations in Afghanistan in various ways, including through fuel receipt and redistribution. More specifically, the Army stores large quantities of fuel at FOB Shank and redistributes that fuel to installations in the surrounding area through government contractors. Ringo’s responsibilities at FOB Shank included supervision of that fuel redistribution process.

 

In his guilty plea, Ringo admitted that between December 2009 and February 2010, he accepted more than $400,000 in cash payments from a government contractor in exchange for creating and submitting fraudulent paperwork permitting that contractor to steal fuel from FOB Shank. The total value of the fuel stolen in the course of the scheme was nearly $1.5 million.

 

At sentencing, Ringo faces a maximum penalty of 15 years in prison and a fine of the greater of $250,000; three times the value of the payments made or solicited; or twice the value gained or lost from the scheme.

 

The case is being prosecuted by Trial Attorney Ryan S. Faulconer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Edmund P. Power for the Eastern District of Virginia. Substantial assistance was provided by Trial Attorney Dan E. Stigall of the Criminal Division’s Office of International Affairs. The case is being investigated by the FBI, the Defense Criminal Investigative Service, the U.S. Army Criminal Investigative Division, other military law enforcement at FOB Shank, and members of the National Procurement Fraud Task Force (NPFTF) and the International Contract Corruption Task Force (ICCTF).

 

The NPFTF, created in October 2006 by the Department of Justice, was designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The ICCTF is a joint law enforcement agency task force that seeks to detect, investigate, and dismantle corruption and contract fraud resulting from U.S. Overseas Contingency Operations worldwide, including in Kuwait, Afghanistan and Iraq.

 

 

WASHINGTON – Three individuals pleaded guilty today in connection with a Medicare fraud scheme operated out of a Houston-area durable medical equipment (DME) company, announced the Departments of Justice and Health and Human Services (HHS).

 

Melvin Jean Barnes, 60; Johnnie Lee Andrews, 58; and Monica Renee Perry, 42, pleaded guilty to conspiracy to commit health care fraud before U.S. District Court Judge Gray Miller in Houston. In their pleas, Andrews and Perry admitted that they were paid kickbacks in exchange for referring Medicare beneficiaries to the DME company, Luant & Odera Inc. Luant & Odera submitted false and fraudulent claims to Medicare for medically unnecessary DME, including power wheelchairs, wheelchair accessories and motorized scooters. In his plea, Barnes admitted that he was paid kickbacks in exchange for delivering the medically unnecessary DME.

After Hurricanes Katrina, Rita and Ike, Medicare relaxed its normal operating procedures to speed provision of healthcare services to elderly and disabled persons and created the CR Modifier. Under the CR Modifier, DME companies and other healthcare providers that furnished replacement DME in good faith, could be paid by Medicare for services provided, even if the companies could not comply with normal program requirements because of the hurricanes.

According to court documents, Andrews and Perry agreed to refer Medicare beneficiaries to Luant & Odera in exchange for kickbacks. Luant & Odera then used the beneficiaries’ information to bill Medicare under the CR Modifier for DME such as wheelchairs or scooters that were neither destroyed by a hurricane nor medically necessary. According to court documents, Barnes accepted kickbacks in exchange for delivering the DME for Luant & Odera. Andrews, Perry and Barnes admitted that they specifically knew that the DME was not destroyed in a hurricane and not medically necessary. Luant & Odera submitted approximately $3 million in false and fraudulent claims to Medicare using the CR Modifier for the DME.

 

At sentencing, scheduled for Dec. 16, 2010, the defendants face a maximum sentence of 10 years in prison.

 

In a related case, Helen Etifoh, the former owner of Luant & Odera, and Paula Whitfield, a patient recruiter for Luant & Odera, were both convicted by a federal jury April 16, 2010, of conspiracy to commit health care fraud. Whitfield was sentenced to 21 months in prison and ordered to pay $807,781 in restitution. Etinfoh is scheduled to be sentenced Dec. 10, 2010.

 

Today’s guilty pleas were 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 Sam S. Sheldon, Charles Reed and Joseph S. Beemsterboer, with assistance from Assistant Chief John Neal 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 810 individuals who collectively have falsely billed the Medicare program for more than $1.85 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 today officially unveiled Defending Childhood, a new Department of Justice initiative focused on addressing children’s exposure to violence. The goals of the initiative are to prevent children’s exposure to violence as victims and witnesses, mitigate the negative effects experienced by children exposed to violence, and develop knowledge about and increase awareness of this issue.

 

“For me, the issue of children’s exposure to violence has been both a personal and professional concern for decades. As our nation’s Attorney General and as a parent, it remains a top priority,” said Attorney General Holder. “Through renewing and refocusing our efforts to serve our nation’s most vulnerable and most distressed children we can transform the country we love for the better – one child at a time.”

 

A key component of the initiative is a multi-year demonstration program. Phase I includes planning grants for eight demonstration sites announced today. In Phase II, up to four communities will be selected from the initial eight to receive funding for further implementation of their plans, based on the availability of funding. This program supports the development of comprehensive community-based strategies to prevent and reduce the impact of children’s exposure to violence in their homes, schools, and communities.

 

The eight demonstration sites are: 

 

• City of Boston ($160,000)
• City of Portland , Maine ($160,000)
• Chippewa Cree Tribe, Mont. ($153,210)
• City of Grand Forks , N.D. ($159,967)
• Cuyahoga County Board of Commissioners, Ohio ($157,873)
• Multnomah County Department of Human Services, Ore. ($159,349)
• Rosebud Sioux Tribe, S.D. ($159,534)
• Shelby County, Tenn. ($159,099). 

 

Some examples of the efforts these grants will support are:            

• improving the identification, screening, assessment, and referral of children and their families to appropriate programs and services;
• increasing access to and utilization of quality programs and services; and
• developing new programs and services where gaps exist. The grantees will work in collaboration with other local organizations, including victim service providers, tribal non-profit organizations, and community based organizations with a documented history of effectiveness concerning children exposed to domestic violence, dating violence, sexual assault, or stalking. 

In addition to the demonstration program grants, the Department of Justice is committing additional funding for research, evaluation, public awareness and partnerships related to the initiative.  The other awards announced today are:

• Action Partnerships for Professional Membership and Professional Organizations Responding to Children Exposed to and Victimized by  Violence ($1,498,932) - Office for Victims of Crime

• Evaluation of the Attorney General’s Children Exposed to Violence Demonstration Program: Phase I ($500,000) – National Institute of Justice

• Public Awareness and Outreach for Victims in Underserved Communities ($995,089) – Office for Victims of Crime

• Research and Evaluation on Children Exposed to Family Violence ($1,244,869) – National Institute of Justice.

Detailed information about grants awarded in each of the above categories is available at www.justice.gov/defendingchildhood .

 

WASHINGTON – The Justice Department announced that it reached agreements this week with the city of Kings Mountain, N.C., and the city of Sandy Springs, Ga., in the form of consent decrees filed in the U.S. District Court for the District of Columbia. If approved by the court, the decrees will allow for Kings Mountain and Sandy Springs to bailout from their status as a "covered jurisdictions" under the Voting Rights Act, thereby exempting them from the preclearance requirements of Section 5 of the act. The bailout standard requires that a covered jurisdiction demonstrates nondiscriminatory behavior for 10 years prior to filing.

 

Under Section 5 of the Voting Rights Act, certain covered jurisdictions, determined by Section 4 of the act, are required to seek approval, known as "preclearance," for any changes in voting qualifications, standards, practices or procedures from the U.S. District Court in Washington, D.C., or from the U.S. Attorney General, prior to their implementation. Section 4 of the act provides that a covered jurisdiction may seek to "bailout" or remove itself from such coverage, and therefore be exempted from the preclearance requirements, by seeking a declaratory judgment before a three-judge panel in federal court in Washington. Such a bailout judgment can be issued only if the district court makes a determination that the jurisdiction meets certain eligibility requirements for bailout contained in the statute, including a 10-year record of nondiscrimination in voting-related actions. The act also provides that the attorney general can consent to entry of a judgment of bailout if, based upon investigation, the attorney general is satisfied that the jurisdiction meets the eligibility requirements.

Kings Mountain filed its bailout action in federal court in Washington in July 2010 and Sandy Springs filed its bailout action on Sept. 7, 2010. Kings Mountain and Sandy Springs officials contacted the attorney general several months prior to filing their bailout actions, indicating that the cities were interested in seeking bailout. Each city provided the department with substantial information and the department conducted an extensive investigation to determine their eligibility. Based on that investigation, the department is satisfied that Kings Mountain and Sandy Springs meet the Voting Rights Act’s requirements for bailout.

Sandy Springs also expressed a desire to conduct its own elections in the future. In the event Sandy Springs decides to administer its own municipal elections, the city has agreed to undertake certain constructive measures to ensure compliance with the Voting Rights Act, such as forming an advisory group regarding city elections, recruiting a diverse group of poll workers and mailing a sample ballot and information to every voter prior to each city election, among other actions.

The consent decrees filed in court detail the legal and factual basis for bailout determinations and, if approved, will grant these requests. The court will retain jurisdiction of each action for 10 years and can reopen an action upon the motion of the attorney general or any aggrieved person alleging conduct by the city that would have originally precluded the city from bailing out if it had occurred during the 10 year period preceding entry of the consent decree.

"In the Voting Rights Act, Congress provided a means for covered jurisdictions to be exempted from the preclearance requirements of Section 5 upon a clear showing that a jurisdiction meets the specific eligibility requirements of the Act." said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "I am very pleased that city officials in both jurisdictions have worked cooperatively with the department in providing the information that we have requested and in moving toward a resolution of this matter in the way envisioned by the Voting Rights Act."

Information about bailout, the Voting Rights Act, and other federal voting laws is available on the Department of Justice web site at www.usdoj.gov/crt/voting/. Complaints may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.

WASHINGTON – The United States has filed a complaint asking a Virginia federal court to permanently bar three firms and three men from promoting a nationwide "HedgeLoan" scheme that the complaint alleges involves the disguised sale of more than $268 million in securities, the Justice Department announced today. HedgeLoan allegedly mimics the fraudulent Derivium 90 percent loan scheme that a California federal court enjoined last year.

The civil injunction suit names three men: Daniel Stafford of Gaithersburg, Md.; Fred R. Wahler, Jr. of Philadelphia; and William Chapman of Great Falls, Va. Stafford and Wahler allegedly own Philadelphia-based defendant HedgeLender LLC. Chapman allegedly owns the remaining two companies named in the complaint, Alexander Capital Markets LLC and Alexander Financial LLC, both based in Great Falls.

According to the government complaint, the defendants promote and operate the HedgeLoan scheme, in which customers are falsely told that they can receive tax free cash for their securities in the form of a "loan," when in reality the monies received are sales proceeds subject to federal income tax on capital gains at the time of receipt. One couple from Michigan cited in the complaint allegedly used the defendants’ HedgeLoan scheme to dispose of more than $4 million in stock through 25 separate transactions. According to the complaint, the Internal Revenue Service audited the couple’s 2005 federal income tax return and found that they had under-reported their income by $3,662,528 as a result of their participation in the scheme. The complaint further alleges that the couple allegedly agreed to pay an additional $616,984 in income tax for 2005.

The suit claims that in virtually every case, the defendants simply sold the customer’s securities on receipt, remitted up to 90 percent of the sales proceeds to the customer as the "loan," and retained the remaining sales proceeds for themselves and the other parties who facilitated the scheme. This allegedly left defendants without the assets necessary to return every customer’s so-called "collateral" if requested at the end of the purported "loan" term. As early as 2007, defendants allegedly lacked the funds to return all customers’ securities who requested them – yet they continued to promote and operate the HedgeLoan scheme and related schemes.

In the past decade the Justice Department has obtained injunctions against hundreds of tax scheme promoters and tax preparers. Information about those cases is available on the Justice Department website.

WASHINGTON – Roberto Trevizo Corral, a resident of Nampa, Idaho, was sentenced to 12 months and one day in prison and ordered to pay $771,252.11 in restitution for failing to collect and pay over employment taxes, the Justice Department and Internal Revenue Service (IRS) announced today.

According to court documents, Corral was the President of AG Services Inc., also known as Corral Agriculture Inc. (AG/Corral), which was an agricultural employer in Idaho that provides agricultural labor to area farmers. During calendar year 2004 through Jan. 31, 2005, Corral willfully failed to truthfully account for and pay over withheld income taxes and Federal Insurance Contributions Act (FICA) tax owed on behalf of AG/Corral and its employees.

Corral admitted that he was responsible for paying over all of the payroll taxes his corporation was required to pay to the IRS, including AG/Corral’s matching share of FICA tax, for calendar years 2002, 2003, 2004 and 2005. He admitted that he failed to pay over in excess of $700,000 in employment taxes.

Acting Assistant Attorney General John A. DiCicco of the Justice Department’s Tax Division commended the efforts of the special agents from IRS Criminal Investigation who investigated the case, as well as Tax Division trial attorneys Christopher S. Strauss and John P. Scully, who are prosecuting the case. Acting Assistant Attorney General DiCicco also thanked the U.S. Attorney’s Office in Boise, Idaho, for its support in this matter.

 

WASHINGTON Jeffrey Lehrmann, a former New Orleans Police Department (NOPD) detective, was sentenced today to three years in prison for misprision of a felony in connection with the cover-up of two police-involved shootings on the Danziger Bridge in the aftermath of Hurricane Katrina that left two civilians dead and four others seriously injured. Lehrmann entered a guilty plea on March 11, 2010, for concealing a known felony by failing to report a conspiracy to obstruct justice in the investigation of these shootings.

 

According to court documents, Lehrmann learned from an NOPD supervisor (the investigator) that an officer on the bridge “shot an innocent man.” Lehrmann then concluded that the shooting on the bridge was legally unjustified. Lehrmannadmitted that he participated with his supervisors in the creation of a report that included false statements by the officers involved in the shootings; false claims about a gun that had been planted by the investigator; and fabricated statements from witnesses who did not exist. Lehrmann also admitted that the report on the investigation included false statements that had allegedly been given by two of the victims from the shooting.

 

According to the factual basis submitted at the time of his guilty plea, Lehrmannadmitted that the NOPD report of the incident contained a false claim that the investigator returned to the bridge the day after the shooting and found a gun in the grass on the east side of the bridge. According to Lehrmann, sometime after the shootings on the Danziger Bridge, he and two sergeants drove with the investigator to the investigator’s home, where the investigator retrieved a bag from his garage. When the investigator was asked what was in the bag, he responded, “a ham sandwich.” Lehrmann then looked in the bag and saw a gun that would be used in the NOPD’s investigation of the Danziger Bridge shootings. Once the investigator assured Lehrmann and the sergeants that the gun was “clean,” meaning that it could not be traced to another crime, they all went along with the plan to plant the gun.

 

This case, which is ongoing, is being investigated by the New Orleans Field Office of the FBI, and is being prosecuted by Deputy Chief Bobbi Bernstein and Trial Attorney Forrest Christian of the Civil Rights Division, along with Assistant U.S. Attorney Julia K. Evans of the U.S. Attorney’s Office for the Eastern District of Louisiana.

 

 

WASHINGTON – Roberto Trevizo Corral, un residente de Nampa, Idaho, fue sentenciado a 12 meses y un día en prisión y deberá pagar $771,252.11 dólares en restitución por no recolectar y pagar impuestos de nómina de empleados, anunciaron hoy el Departamento de Justicia y Servicios de Impuestos Internos [Internal Revenue Service (IRS)].

Según el expediente judicial, Corral era el presidente de AG Services Inc., también conocida como Corral Agriculture Inc. (AG/Corral), un empleador agrícola de Idaho que suministraba mano de obra agrícola a agricultores del área. Desde el año calendario 2004 hasta el 31 de enero de 2005, Corral no registró ni pagó a sabiendas lo que correspondía por impuestos sobre los ingresos retenidos e impuestos bajo la Ley de Contribución al Seguro Social [Federal Insurance Contributions Act (FICA)] debidos de parte de AG/Corral y sus empleados.

Corral admitió ser el responsable de pagar todos los impuestos de nómina de empleados exigidos a su empresa por el IRS, entre ellos la parte equivalente de AG/Corral del impuesto FICA correspondiente a los años calendario 2002, 2003, 2004 y 2005. También admitió no haber pagado más de $700,000 dólares de impuestos de nómina de empleados.

El Secretario de Justicia Auxiliar Interino John A. DiCicco de la División de Impuestos del Departamento de Justicia felicitó a los agentes especiales del IRS que investigaron el caso, así como también a los abogados litigantes de la División de Impuestos Christopher S. Strauss y John P. Scully, que están a cargo de la acusación en el caso. El Secretario de Justicia Auxiliar Interino DiCicco también agradeció a la Fiscalía Federal en Boise, Idaho, por su apoyo en este caso.