District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Ten Russian Agents Plead Guilty and Are to Be Removed from the United StatesRead the Press Release
Ten individuals pleaded guilty today in Manhattan federal court to conspiring to serve as unlawful agents of the Russian Federation within the United States and will be immediately expelled from the United States, the Justice Department announced today.
In hearings today before Judge Kimba M. Wood in U.S. District Court for the Southern District of New York, each of the 10 defendants arrested on June 27, 2010, pleaded guilty to one count of conspiracy to act as an agent of a foreign government within the United States without notifying the U.S. Attorney General. Under their plea agreements, the defendants were required to disclose their true identities in court today and to forfeit certain assets attributable to the criminal offenses.
The defendants known as "Richard Murphy" and "Cynthia Murphy" admitted they are Russian citizens named Vladimir Guryev and Lydia Guryev and are agents of the Russian Federation. Defendants "Michael Zottoli" and "Patrica Mills" admitted they are Russian citizens named Mikhail Kutsik and Natalia Pereverzeva, and are agents of the Russian Federation. Defendants "Donald Howard Heathfield" and "Tracey Lee Ann Foley" admitted they are Russian citizens named Andrey Bezrukov and Elena Vavilova, and are agents of the Russian Federation. "Juan Lazaro" admitted that he is a Russian citizen named Mikhail Anatonoljevich Vasenkov and is an agent of the Russian Federation.
The defendants Vicky Pelaez, Anna Chapman and Mikhail Semenko, who operated in this country under their true names, admitted that they are agents of the Russian Federation; and Chapman and Semenko admitted they are Russian citizens.
The United States has agreed to transfer these individuals to the custody of the Russian Federation. In exchange, the Russian Federation has agreed to release four individuals who are incarcerated in Russia for alleged contact with Western intelligence agencies.
"This was an extraordinary case, developed through years of work by investigators, intelligence lawyers, and prosecutors, and the agreement we reached today provides a successful resolution for the United States and its interests," Attorney General Eric Holder said.
"Counterintelligence is a top FBI investigative priority, and this case in particular represents the dedicated efforts of the men and women who have worked tirelessly behind the scenes to counter the efforts of those who would steal our nation's vital secrets," said FBI Director Robert S. Mueller.
This case is the result of a multi-year investigation conducted by the FBI and other elements of the U.S. intelligence community; the U.S. Attorney’s Office for the Southern District of New York; and the Counterespionage Section and the Office of Intelligence within the Justice Department’s National Security Division.
The prosecution was handled by Assistant U.S. Attorneys Michael Farbiarz, Glen Kopp and Jason Smith of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, and Trial Attorneys Kathleen Kedian and Richard Scott of the Counterespionage Section of the Justice Department’s National Security Division.
Justice Department Files a Lawsuit Alleging Employment Discrimination by Georgia Rug Manufacturer and SellerRead the Press Release
WASHINGTON – The Justice Department today filed a lawsuit against Garland Sales Inc., a rug manufacturer and seller located in Dalton, Ga., alleging it engaged in a pattern or practice of discrimination by imposing unnecessary and discriminatory hurdles to employment for work authorized individuals.
According to the department’s findings, Garland required all non-U.S. citizen applicants to present certain work authorization documents. The Immigration and National Act (INA) requires that employers not impose different or greater employment eligibility verification (I-9) standards on non-citizen authorized workers as compared to U.S. citizens. Garland imposed different and greater requirements on non-U.S. citizens as compared to applicants who were U.S. citizens.
Moreover, the department found that Garland retaliated against a limited English proficient naturalized U.S. citizen, when it rescinded a job offer. Specifically, Garland requested the individual produce a "Green Card" (Form I-551 Resident Alien Card), which the applicant did not have because he is a U.S. Citizen. When the applicant did not produce this document and voiced concern about being asked to produce it, Garland withdrew his offer of employment.
"The INA’s anti-discrimination provision makes it illegal to impose different rules for establishing work authorization based on actual or perceived citizenship status," said Thomas E. Perez, the Assistant Attorney General in charge of the Civil Rights Division. "Our Office of Special Counsel for Immigration Related Unfair Employment Practices (OSC) is acting now to remedy this illegal pattern or practice of discrimination."
The lawsuit charging Garland was filed in the department’s Executive Office for Immigration Review – Office of the Chief Administrative Hearing Officer (OCAHO).
The Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provisions of the INA, which protect U.S. citizens and certain work-authorized individuals from citizenship status discrimination. The INA also protects all work-authorized individuals from national origin discrimination, over-documentation in the employment eligibility verification process, and retaliation.
Earlier this month, OSC entered into an out-of-court settlement with Macy’s department stores to settle allegations that a store in Orlando, Fla., committed document abuse and discriminated against a legal permanent resident by requesting more work authorization documents than are required to establish eligibility under the Form I-9. As part of the settlement, Macy’s has agreed to train its human resources employees in its Orlando area stores about federal protections for workers against citizenship status and national origin discrimination, and properly conducting the employment verification process.
For more information about protections against employment discrimination under the immigration laws, call 1-800-255-7688 (OSC’s worker hotline) (1-800-237-2525, TDD for hearing impaired), 1-800-255-8255 (OSC’s employer hotline) (1-800-362-2735, TDD for hearing impaired), or 202-616-5594. Email [email protected], or visit the website at www.justice.gov/crt/osc.
U.S. Army Major Pleads Guilty to Making False Statements Related to Shipment of Currency from Iraq to the United StatesRead the Press Release
WASHINGTON - U.S. Army Major Charles E. Sublett, 46, of Huntsville, Ala., pleaded guilty today in federal court in Memphis, Tenn. , to making false statements to a federal agency, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.
Sublett was charged in an indictment, returned by a federal grand jury on Jan. 5, 2010, following his arrest in Huntsville. According to the indictment, Sublett smuggled more than $100,000 in currency, concealed in a shipping package, into the United States from Iraq in January 2005.
According to the indictment, Sublett was deployed to Balad Regional Contracting Center on Logistical Support Area (LSA) Anaconda in Iraq from August 2004 through February 2005. LSA Anaconda is a U.S. military installation that was established in 2003 to support U.S. military operations in Iraq. According to the indictment, Sublett served as a contracting officer while deployed to LSA Anaconda. As a contracting officer, Sublett was responsible for, among other things, evaluating and supervising contracts with companies that provide goods and services to the U.S. Army.
Sublett admitted that, on Jan. 11, 2005, he sent a package from Balad, Iraq, to Killeen, Texas, which was seized by U.S. Customs and Border Protection officers in Memphis. Sublett admitted that, on the international air waybill, he falsely described the contents of the package as books, papers, a jewelry box and clothes with a total declared customs value of $140 when, in fact, Sublett knew the package contained $107,900 in U.S. currency and 17,120,000 in Iraqi dinar. Sublett also admitted that he failed to file a currency or monetary instruments transaction report (CMIR) as required by federal law when transporting currency in amounts of more than $10,000 into or out of the United States. During the plea hearing, Sublett admitted to making false claims to investigators regarding his attempt to bring the currency into the United States in an effort to impede their investigation.
The maximum penalty for making false statements to a government agency is five years in prison, and a $250,000 fine, to be followed by a term of up to three years of supervised release. Sublett is scheduled to be sentenced on Oct. 8, 2010. As part of the plea agreement, Sublett also consented to the forfeiture of the $107,900 and the 17,120,000 Iraqi dinar that he concealed in the package.
This case is being prosecuted by Trial Attorneys Daniel A. Petalas and Justin V. Shur of the Criminal Division’s Public Integrity Section. This case is being investigated by Army Criminal Investigation Command; Defense Criminal Investigative Service; the FBI; Internal Revenue Service - Criminal Investigation; the Special Inspector General for Iraq Reconstruction; and U.S. Immigration and Customs Enforcement.
Snamprogetti Netherlands B.V. Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $240 Million Criminal PenaltyRead the Press Release
WASHINGTON – Snamprogetti Netherlands B.V., (Snamprogetti) has agreed to pay a $240 million criminal penalty to resolve charges related to the Foreign Corrupt Practices Act (FCPA) for its participation in a decade-long scheme to bribe Nigerian government officials to obtain engineering, procurement and construction (EPC) contracts, the Department of Justice announced today. The EPC contracts to build liquefied natural gas (LNG) facilities on Bonny Island, Nigeria, were valued at more than $6 billion.
The department filed a deferred prosecution agreement and a criminal information today against Snamprogetti in U.S. District Court for the Southern District of Texas. The two-count information charges Snamprogetti with one count of conspiracy and one count of aiding and abetting violations of the FCPA. During the relevant time period, Snamprogetti, a Dutch corporation headquartered in Amsterdam, The Netherlands, was a wholly owned subsidiary of Snamprogetti S.p.A., an Italian EPC company headquartered in Milan, Italy.
Snamprogetti, Kellogg Brown & Root Inc. (KBR), Technip S.A. (Technip) and an engineering and construction company headquartered in Yokohama, Japan, were part of a four-company joint venture that was awarded four EPC contracts by Nigeria LNG Ltd. (NLNG), between 1995 and 2004 to build LNG facilities on Bonny Island. The government-owned Nigerian National Petroleum Corporation (NNPC) was the largest shareholder of NLNG, owning 49 percent of the company.
According to court documents, Snamprogetti authorized the joint venture to hire two agents, Jeffrey Tesler and a Japanese trading company, to pay bribes to a range of Nigerian government officials, including top-level executive branch officials, to assist Snamprogetti and the joint venture in obtaining the EPC contracts. At crucial junctures preceding the award of EPC contracts, Snamprogetti’s co-conspirators met with successive holders of a top-level office in the executive branch of the Nigerian government to ask the office holders to designate a representative with whom the joint venture should negotiate bribes to Nigerian government officials. The joint venture paid approximately $132 million to a Gibraltar corporation controlled by Tesler and more than $50 million to the Japanese trading company during the course of the bribery scheme. According to court documents, Snamprogetti intended for these payments to be used, in part, for bribes to Nigerian government officials.
Under the terms of the deferred prosecution agreement, the department agreed to defer prosecution of Snamprogetti for two years. Snamprogetti, its current parent company, Saipem S.p.A., and its former parent company, ENI S.p.A. (ENI), agreed to ensure that their compliance programs satisfied certain standards and to cooperate with the department in ongoing investigations. If Snamprogetti and its current and former parent companies abide by the terms of the deferred prosecution agreement, the department will dismiss the criminal information when the term of the agreement expires.
In related cases, KBR’s former CEO, Albert "Jack" Stanley, pleaded guilty in September 2008 to conspiring to violate the FCPA for his participation in the bribery scheme, while KBR’s successor company, Kellogg Brown & Root LLC, pleaded guilty in February 2009 to charges related to the FCPA for its participation in the scheme to bribe Nigerian government officials. Kellogg Brown & Root LLC was ordered to pay a $402 million fine and to retain an independent compliance monitor for a three-year period to review the design and implementation of its compliance program. In addition, Tesler and Wojciech Chodan, a former salesperson and consultant of a United Kingdom subsidiary of KBR, were indicted in February 2009 on charges related to the FCPA for their alleged participation in the bribery scheme. The United States has requested these defendants’ extradition from the United Kingdom. In another related criminal case, the department filed a deferred prosecution agreement and criminal information against Technip on June 28, 2010. According to that agreement, Technip agreed to pay a $240 million criminal penalty and to retain an independent compliance monitor for two years.
Today, Snamprogetti and ENI also reached a settlement of a related civil complaint filed by the U.S. Securities and Exchange Commission (SEC), charging Snamprogetti with violating the FCPA’s anti-bribery provisions, falsifying books and records, and circumventing internal controls and charging ENI with violating the FCPA’s books and records and internal controls provisions. As part of that settlement, Snamprogetti and ENI agreed jointly to pay $125 million in disgorgement of profits relating to those violations.
"The resolutions in this investigation demonstrate the U.S. government’s commitment to identifying and holding accountable all companies and individuals who scheme to bribe foreign government officials to win business," said Principal Deputy Assistant Attorney General Mythili Raman of the Criminal Division. "Snamprogetti and its joint-venture partners conspired to pursue lucrative contracts through a massive bribery scheme – a scheme that has led to more than $1.28 billion in criminal and civil penalties to date. The monetary penalties and enforcement actions that have resulted from this investigation should send a clear message to companies and their employees that using foreign bribery as a means of winning contracts abroad will be punished."
"Today’s resolution is yet another example of the FBI’s willingness to aggressively investigate individuals and businesses that engage in corrupt conduct around the globe," said Kevin L. Perkins, assistant director of the FBI’s Criminal Investigative Division. "Those who elect to expand or protect their business interests through the payment of illegal bribes to foreign public officials should know that they are not beyond the reach of the FBI. Together, with our law enforcement partners around the world, we will identify these bad actors and work with the Justice Department to prosecute them under the Foreign Corrupt Practices Act and other appropriate federal statutes."
The criminal case is being prosecuted by Acting Assistant Chief William J. Stuckwisch and Deputy Chief Patrick F. Stokes of the Criminal Division’s Fraud Section, with investigative assistance from the FBI-Houston Division. The Criminal Division’s Office of International Affairs provided substantial assistance. Significant assistance was provided by the SEC’s Division of Enforcement and by authorities in France, Italy, Switzerland and the United Kingdom.
New Charges Filed Against Irish Trading Firm for Exporting U.S. Military Items to IranRead the Press Release
WASHINGTON – A federal grand jury in Washington, D.C., has charged Mac Aviation Group, an Irish trading company, and its officers Thomas and Sean McGuinn of Sligo, Ireland, in a superseding indictment with purchasing F-5 fighter aircraft parts, helicopter engines and other aircraft components from U.S. firms and illegally exporting them to Iran.
The 27-count superseding indictment was announced by David Kris, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; John Morton, Director of U.S. Immigration and Customs Enforcement; and James Burch, Deputy Inspector General for Investigations of the Defense Criminal Investigative Service.
The defendants were originally charged in a sealed 25-count indictment in July 2008 with two counts of conspiracy, 19 counts of violating the International Emergency Economic Powers Act (IEEPA) and Iranian Transactions Regulations, four counts of false statements, and forfeiture allegations. The indictment was unsealed in March 2009.
The two additional counts charged in the superseding indictment pertain to Mac Aviation and Tom McGuinn’s procurement of military items, specifically F-5 fighter aircraft parts, from a U.S. company and export of those parts to Iran, in violation of the Arms Export Control Act (AECA). If convicted, the defendants face a maximum sentence of 10-20 years in prison for each of the IEEPA counts, 10 years in prison for the AECA charge, 5-20 years in prison for each of the conspiracy counts, and five years in prison for each of the false statement counts.
According to the indictment, beginning as early as August 2005 and continuing through July 2008, the defendants solicited purchase orders from customers in Iran for U.S.-origin aircraft engines and parts and then sent requests for aircraft components to U.S. companies. These parts included helicopter engines, aircraft bolts and vanes, and canopy panels for the F-5 fighter aircraft. The defendants wired money to banks in the U.S. as payment for these parts and concealed from U.S. sellers the ultimate end-use and end-users of the purchased parts. The defendants caused these parts to be exported from the United States to third countries like Malaysia before causing them to be transshipped to Iran.
The superseding indictment alleges that from 2005 and continuing until 2006, the defendants caused canopy panels designed for the F-5 fighter aircraft, valued at approximately $44,500, to be exported from the United States to Iran. The defendants falsely stated that the end user for the F-5 panels was the Republic of Nigeria. Instead, the panels were sold by the defendants to Sasadja Moavanate Bazargani, in Tehran, Iran for $86,400. The purchase was arranged through the Iran Aircraft Manufacturing Industrial Company, known by its Iranian acronym as HESA.
On Sept. 17, 2008, the Treasury Department designated several Iranian entities as weapons of mass destruction proliferators and members of their support networks, pursuant to Executive Order 13382. Among the entities designated was HESA, which the Treasury Department determined was controlled by Iran’s Ministry of Defense and Armed Forces Logistics and has provided support to the Iranian Revolutionary Guard Corps.
The defendants were previously charged with purchasing 17 helicopter engines from Rolls Royce Corporation in Indiana for $4.27 million dollars on behalf of an Iranian trading company, some of which were ultimately sent to HESA, and also causing U.S.-origin airplane vanes and bolts to be exported from the United States to Iran.
This investigation was conducted by special agents from the Department of Homeland Security’s U.S. Immigration and Customs Enforcement and the Defense Criminal Investigative Service. Special agents from the U.S. Department of Commerce, Office of Export Enforcement, also assisted in the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Ann Petalas and John Borchert of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorneys Jonathan Poling and Ryan Fayhee of the Counterespionage Section of the Justice Department’s National Security Division.
The details contained in an indictment are mere allegations. All defendants are presumed innocent unless and until proven guilty in a court of law.
Former Guatemalan Special Forces Soldier Pleads Guilty to Making False Statements on Immigration Forms Regarding 1982 Massacre of Guatemalan VillagersRead the Press Release
WASHINGTON – Gilberto Jordan, 54, a former Guatemalan special forces soldier, pleaded guilty today in Fort Lauderdale, Fla., to a federal charge of unlawfully procuring his U.S. citizenship, admitting that he lied on his naturalization application about his participation in a 1982 massacre at a Guatemalan village known as Dos Erres. The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida and Director John Morton of U.S. Immigration and Customs Enforcement (ICE).
Jordan, of Delray Beach, Fla., entered his guilty plea before U.S. District Judge William J. Zloch. Jordan was remanded into custody by Judge Zloch following the plea hearing. Jordan faces a maximum sentence of 10 years in prison, a $250,000 fine and judicial revocation of his naturalized citizenship. He will be sentenced on Sept. 17, 2010.
According to the indictment and court documents, in approximately November 1982, a Guatemalan guerrilla group ambushed a military convoy near Dos Erres, Guatemala, killing soldiers and taking a number of rifles. In response, a patrol of approximately 20 Guatemalan special forces soldiers, known as "Kaibiles," including Jordan, were deployed in December 1982 to the village of Dos Erres to search for the stolen rifles and find suspected guerrillas. According to court documents, on or about Dec. 7, 1982, Jordan and the special patrol entered Dos Erres with the support of approximately 40 additional Kaibiles, who created a security perimeter around the village so that no one could escape. The members of the special patrol searched all of the houses for the missing weapons, forced the villagers from their homes, and separated the women and children from the men.
Court documents further state that members of the special patrol then proceeded to systematically kill the men, women and children at Dos Erres by, among other methods, hitting them in the head with a sledgehammer and then pushing them into the village well. According to court documents, members of the special patrol also forcibly raped many of the women and girls at Dos Erres before killing them. Approximately 162 skeletal remains were later exhumed from the village well.
As part of his plea, Jordan admitted that he had been a Kaibil in the Guatemalan military who participated in the massacre at Dos Erres. Jordan also admitted that the first person he killed at Dos Erres was a baby, whom Jordan murdered by throwing in the well.
According to court documents, when Jordan applied to become a U.S. citizen in September 1996, he falsely denied that he had ever served in the military or committed any crimes for which he had not been arrested. In July 1999, when Jordan was interviewed by a naturalization examiner in connection with his naturalization application, he falsely swore under oath that the answers he had earlier provided on his application were true and correct. Jordan was sworn in as a U.S. citizen on Aug. 25, 1999.
The case was prosecuted byTrial Attorneys Hillary Davidson and Brian Skaret of the Human Rights and Special Prosecutions Section of the Criminal Division, and Assistant U.S. Attorney A. Marie Villafaña of the Southern District of Florida. The case was investigated by ICE’s Homeland Security Investigations in West Palm Beach and ICE’s Human Rights Violators and War Crimes Unit and ICE’s Office of International Affairs. The Criminal Division’s Office of International Affairs provided assistance in this matter.
Charges Unsealed Against Five Alleged Members of Al-Qaeda Plot to Attack the United States and United KingdomRead the Press Release
WASHINGTON – The Justice Department today announced charges against five members of an al-Qaeda plot to attack targets in the United States and United Kingdom.The charges reveal that the plot against New York’s subway system uncovered in September 2009 involving Colorado resident Najibullah Zazi was directed by senior al-Qaeda leadership in Pakistan, and was also directly related to a scheme by al-Qaeda plotters in Pakistan to use Western operatives to attack a target in the United Kingdom.
The superseding indictment, which was returned and unsealed today in the Eastern District of New York, charges the following defendants each with several terrorism violations: Adnan El Shukrijumah, also known as "Hamad;" Adis Medunjanin, also known as "Mohammad;" Abid Naseer; Tariq Ur Rehman; and a fifth defendant known as "Ahmad," "Sohaib" or "Zahid." Each of the defendants faces a maximum sentence of life in prison if convicted.
According to the indictment, court filings and plea proceedings in the case, the plot involving Zazi was organized by Saleh al-Somali, Rashid Rauf, and El Shukrijumah, who were then-leaders of al-Qaeda’s "external operations" program dedicated to terrorist attacks in the United States and other Western countries.
Between September and December 2008, Saleh and El Shukrijumah recruited Zazi and Zazi’s co-conspirators, Zarein Ahmedzay and Medunjanin, to conduct suicide bombings in New York City using improvised explosive devices made from supplies such as hydrogen peroxide, acetone, flour and oil. According to the indictment and court filings, Saleh communicated with Zazi through "Ahmad," an al-Qaeda facilitator in Peshawar, Pakistan. In early September 2009, after Zazi constructed the detonator explosives for the attack, he emailed with "Ahmad" in Pakistan about the proper ingredients for the flour-based main charge explosive. Zazi pleaded guilty to his role in the New York subway plot on February 22, 2010; Ahmedzay similarly pleaded guilty on April 23, 2010.
The indictment adds formal charges against El Shukrijumah, a 34-year-old native of Saudi Arabia who served as one of the leaders of al-Qaeda’s external operations program. According to the indictment, El Shukrijumah recruited Zazi, Ahmedzay, and Medunjanin to return to the United States and conduct terrorist attacks there. El Shukrijumah has been wanted by the FBI for several years and is the subject of a $5 million reward for information leading to his arrest. He remains at large.
The investigation by authorities in the United States and United Kingdom has revealed that "Ahmad" was also communicating with Manchester-based, United Kingdom resident Naseer. Naseer, like Zazi, was in Peshawar, Pakistan in November 2008, according to the court filings.
After returning to the United Kingdom, Naseer sent messages back and forth to the same email account that "Ahmad" was using to communicate with the American-based al-Qaeda cell on behalf of Saleh, the indictment and court filings allege. In the messages, Naseer used coded language to refer to different types of explosives. At the culmination of the plot, in early April 2009, Naseer, again using coded language, told "Ahmad" that he was planning a large "wedding" for numerous guests between April 15 and 20, 2009, and that "Ahmad" should be ready. Notably, "Ahmad" and Zazi had agreed on a similar code to mean the attack was ready to be executed, and Zazi emailed Ahmad that "the marriage is ready" just before he left Colorado for New York in early September 2009.
On April 8, 2009, Naseer and Rehman were arrested in the United Kingdom on terrorism charges. In connection with the arrests, U.K. authorities conducted searches of the plotters’ homes, where they found large quantities of flour and oil, as well as surveillance photographs of public areas in Manchester and maps of Manchester’s city center posted on the wall, with one of the locations from the surveillance photographs highlighted. Naseer is currently in custody in the United Kingdom. The United States intends to seek his extradition to face trial. Rehman is not in custody.
The superseding indictment also adds new charges to the pending indictment against Medunjanin. Specifically, the indictment charges that, in furtherance of the New York plot, and, after Zazi was already in custody, Medunjanin attempted to crash his car into another car on the Whitestone Expressway in Queens, N.Y. as a last attempt to carry out a suicide attack on American soil. Just before crashing his car, Medunjanin called 911 to identify himself and announce his intentions. Medunjanin remains in federal custody in the United States. No trial date has been set.
Medunjanin is charged with conspiring to use weapons of mass destruction; conspiring to commit murder abroad; providing and conspiring to provide material support to al-Qaeda; receiving military training from al-Qaeda; committing and attempting to commit an act of terrorism transcending national boundaries; and using firearms and a destructive device in relation to the above offenses.
Shukrijumah and "Ahmad" are each charged with providing and conspiring to provide material support to al-Qaeda; conspiring to use weapons of mass destruction; assisting the receipt of military training; committing and attempting to commit an act of terrorism transcending national boundaries; and using firearms in relation to the same offenses. "Ahmad" is also charged together with Naseer and Rehman with providing and conspiring to provide material support to al-Qaeda and conspiracy to use a destructive device in relation to the U.K. branch of the plot.
"These charges underscore the global nature of the terrorist threat we face. They further reflect the effectiveness of mutual investigations and cooperation with our global partners in disrupting terrorism threats. I thank our counterparts in the United Kingdom for their assistance in this investigation," said David Kris, Assistant Attorney General for National Security.
"As today’s charges demonstrate, we will not rest in our pursuit of those responsible for plotting terrorist attacks," said Loretta E. Lynch, U.S. Attorney for the Eastern District of New York. Ms. Lynch also expressed her gratitude to the law enforcement personnel, both domestic and foreign, who took part in the investigation.
FBI Executive Assistant Director Sean Joyce, National Security Branch said, "The threat posed by terrorists around the world is a threat to security and a threat to the rule of law. The transnational nature of this conspiracy, and its connection to plots targeted outside the U.S. underscores the importance of international coordination and collaboration to do everything we can to ensure public safety."
"The charges announced today illustrate the coordinated and persistent attempts by our adversaries to harm American citizens," said FBI New York Acting Assistant Director-in-Charge George Venizelos. "FBI personnel around the world are dedicated to working with our international law enforcement partners to uncover and thwart attacks."
The investigation is being conducted by the New York, Denver and Miami FBI Joint Terrorism Task Forces, as well as the Washington Field Office of the FBI. The North West Counter Terrorism Unit and Greater Manchester Police Department have also provided significant assistance.
The case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of New York, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. The U.S. Attorney’s Office for the Southern District of Florida has also provided assistance in the investigation.
The public is reminded that an indictment contains mere allegations and a defendant is presumed innocent until proven guilty.
Three Indicted in Alleged Conspiracy Involving the Trafficking of Haitian NationalsRead the Press Release
WASHINGTON - The Justice Department today announced that Carline Ceneus, Cabioch Bontemps and Willy Edouard have been indicted by a federal grand jury sitting in the Northern District of Florida for engaging in a conspiracy to commit forced labor and visa fraud involving Haitian nationals. Ceneus is also charged with document servitude.
Ceneus, 32, of Miami, and Bontemps, 34, of Gainesville, Fla., have been arrested. Ceneus was detained upon re-entry to the United States. Edouard, 47, of Miami, is considered a fugitive. The three are charged with crimes arising from the alleged scheme to coerce the labor and services of Haitian nationals brought by Ceneus and Edouard to northern Florida to work under the federal agricultural guest worker program.
According to the indictment, Ceneus, Bontemps and Edouard engaged in a conspiracy and devised a scheme to obtain the labor of 34 Haitian nationals by enticing them to come to the Gainesville area to pick beans and peas with false promises of lucrative jobs over three years culminating in permanent residency. The three defendants then maintained the victims’ labor and services through threats of serious harm, according to the indictment. Ceneus and Edouard arranged for the workers to pay substantial recruitment fees, procured by loans provided by loan sharks and often secured by the victims’ property. After arrival in the United States, the defendants confiscated the victims’ passports and failed to honor the promised terms of employment. The defendants kept the Haitian nationals in their service by threatening to report them to law enforcement and have them deported or sent home to face their large unpaid debts. The indictment also charges that the defendants engaged in visa fraud by making false statements in documents filed with the U.S. Department of Labor to procure H2A guest worker visas.
The charges set forth in an indictment are merely accusations and the defendants are presumed innocent until proven guilty. If convicted, Ceneus faces a maximum sentence of 25 years and Edouard and Cabioch each face 10 years in prison.
This case is being investigated by the U.S. Department of Homeland Security Immigration and Customs Enforcement, U.S. Department of Labor, Office of Inspector General - Labor Racketeering and Fraud Investigations, the Florida Department of Law Enforcement and the Alachua County, Fla., Sheriff’s Department. The case is being prosecuted by trial attorney Susan French of the Human Trafficking Prosecution Unit of the Civil Rights Division, Criminal Section, and Assistant U.S. Attorney Frank Williams of the Northern District of Florida.
Numerous non-governmental organizations have provided services to the victims and include: Alachua County Victim Services and Rape Crisis Center; Alachua County Housing Authority; Gainesville Harvest; Alachua County Health Department; Trinity United Methodist Church; Child Advocacy Center of Gainesville; United Way; St. Francis House; Peaceful Paths; Florida Rural Legal Services (Ft. Myers, Fla.); Florida Freedom Partnership (Miami); and World Relief (Jacksonville, Fla.).
Justice Department Settles Lawsuit Alleging Racial Discrimination at Ann Arbor, Michigan, Michigan Apartment ComplexRead the Press Release
WASHINGTON – The owners and operators of Ivanhoe House Apartments, an apartment complex in Ann Arbor, Mich., have agreed to pay $82,500 to settle a lawsuit filed by the Justice Department alleging that they had discriminated against African-American home-seekers, in violation of the Fair Housing Act.
The Justice Department’s lawsuit, which was handled jointly by attorneys from the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Michigan, was filed in March 2010. The lawsuit was based upon evidence generated by a series of fair housing tests conducted by the Fair Housing Center of Southeastern Michigan, a private non-profit organization located in Ann Arbor. In the tests, individuals posed as prospective renters for purposes of determining whether the defendants were providing equal treatment to similarly situated home seekers in compliance with the Fair Housing Act.
As alleged in the complaint, the testing revealed that Ivanhoe House Apartments repeatedly and consistently treated African-American apartment-seekers less favorably than white apartment-seekers. Specifically, the complaint alleged that Ivanhoe House Apartments denied the availability of apartments to African-Americans, failed to show them available apartments, and/or quoted them later dates of availability than they quoted to white persons. A separate federal lawsuit was filed by the Fair Housing Center. Today’s settlement resolves both lawsuits.
"Racial discrimination in housing harms not only those who were denied housing, but also the communities in which they live," said Thomas E. Perez, Assistant Attorney General of the Civil Rights Division. "Today’s settlement is a clear signal of our commitment to vigorously enforce the Fair Housing Act and to fight illegal discrimination in housing."
"Unfortunately, racial discrimination in housing persists in Michigan and elsewhere," said Barbara L. McQuade, U.S. Attorney for the Eastern District of Michigan. "We will continue to protect the rights of all persons in this District to obtain the housing of their choice free from unlawful discrimination."
Under the settlement, which must still be approved by U.S. District Court Judge Sean F. Cox, the defendants will pay $35,000 in damages to three victims who the United States contends were discriminated against because of their race at Ivanhoe House Apartments; pay $7,500 in a civil penalty to the United States; and pay $40,000 to the Fair Housing Center of Southeastern Michigan as damages for the non-profit’s efforts in testing and investigating the apartment complex. The settlement also requires the defendants and their employees to undergo fair housing training, conduct self-testing of the apartment complex, and provide periodic reports to the Justice Department and the Fair Housing Center of Southeastern Michigan.
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.justice.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, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
Justice Department Resolves Disability Discrimination Lawsuit Against Fitchburg, Massachusetts, Housing AuthorityRead the Press Release
WASHINGTON – The Justice Department today announced that it has reached an agreement resolving its lawsuit against the Fitchburg, Mass., Housing Authority and its executive director, Robert W. Hill. The lawsuit alleged that the Fitchburg Housing Authority and Hill violated the Fair Housing Act by adopting and implementing policies that denied tenants with disabilities other than mobility impairments the opportunity to transfer between apartments within Fitchburg’s public housing neighborhoods.
"The Fair Housing Act requires equal access to housing for persons with disabilities," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "This comprehensive settlement will ensure equal access to housing for all disabled individuals, not just those who are substantially limited in the major life activity of walking."
Under the terms of the settlement, which must still be approved by the U.S. District Court for the District of Massachusetts, the defendants must establish a $65,000 settlement fund to compensate persons who may have been injured by their alleged discriminatory conduct. The settlement also requires employees of the Fitchburg Housing Authority to receive training on the prohibition of disability discrimination under federal fair housing laws. Additionally, the Fitchburg Housing Authority must implement nondiscrimination and reasonable accommodation policies, and a procedure by which tenants may file a disability discrimination complaint against and employee or agent of the authority.
This case originated when a former resident of the Fitchburg Housing Authority filed a discrimination complaint with the U.S. Department of Housing and Urban Development (HUD). HUD conducted an investigation and referred the matter to the Justice Department. The former resident resolved her claims against the Fitchburg Housing Authority in an out-of-court settlement.
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 the website www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
Italian Executive Extradited from Germany to the United States to Face Foreign Bribery ChargesRead the Press Release
WASHINGTON – Italian citizen Flavio Ricotti, a former executive of Rancho Santa Margarita, Calif.-based valve company Control Components Inc. (CCI), has been extradited to the United States from Germany in connection with his alleged participation in a conspiracy to secure contracts by paying bribes to officials of foreign state-owned companies as well as officers and employees of foreign and domestic private companies, the Department of Justice announced today. Ricotti, 49, of Bientina, Italy, was arrested on Feb. 14, 2010, in Frankfurt, Germany, and arrived in the United States on July 2, 2010.
Ricotti and five other former executives of CCI were charged on April 8, 2009, in a 16-count indictment for their alleged roles in the foreign bribery scheme. According to the indictment, Ricotti, who served as CCI’s vice president and head of sales for Europe, Africa and the Middle East from 2001 through 2007, allegedly caused CCI employees and agents to make corrupt payments totaling approximately $750,000 to officers and employees of state-owned companies, and corrupt payments totaling approximately $380,000 to officers and employees of private companies. According to the indictment, these corrupt payments occurred in connection with CCI projects in various countries around the world, including in the United Arab Emirates, Kazakhstan, India and Qatar. According to court documents, the valve company designs and manufactures service control valves for use in the nuclear, oil and gas, and power generation industries worldwide.
The other five former CCI executives also charged are Stuart Carson, CCI’s former chief executive officer; Hong (Rose) Carson, CCI’s former director of sales for China and Taiwan; Paul Cosgrove, CCI’s former director of worldwide sales; David Edmonds, CCI’s former vice president of worldwide customer service; and Han Yong Kim, the former president of CCI’s Korean office. Trial is scheduled to begin Nov. 2, 2010.
Ricotti is charged with one count of conspiracy to violate the FCPA and the Travel Act, one count of violating the FCPA, and three counts of violating the Travel Act. The conspiracy count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $100,000 or twice the value gained or lost. The Travel Act counts each carry a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the pecuniary gain or loss.
In related cases, two defendants previously pleaded guilty to conspiring to bribe officers and employees of foreign state-owned companies on behalf of CCI. On Jan. 8, 2009, Mario Covino, the former director of worldwide factory sales for CCI, pleaded guilty to one count of conspiracy to violate the FCPA and admitted to causing the payment of approximately $1 million in bribes to officers and employees of several foreign state-owned companies. On Feb. 3, 2009, Richard Morlok, CCI’s former finance director, pleaded guilty to one count of conspiracy to violate the FCPA and admitted to causing the payment of approximately $628,000 in bribes to officers and employees of several foreign state-owned companies. Covino and Morlok are scheduled to be sentenced in January 2011.
On July 31, 2009, CCI pleaded guilty to a three-count criminal information charging the company with conspiracy to violate the FCPA and the Travel Act, and two substantive violations of the FCPA. CCI was ordered to pay an $18.2 million criminal fine, placed on organizational probation for three years, and ordered to create and implement a compliance program and retain an independent compliance monitor for three years. CCI admitted that from 2003 through 2007 it made approximately 236 corrupt payments in more than 30 countries, which resulted in net profits to the company of approximately $46.5 million from sales related to those corrupt payments.
The case is being prosecuted by Trial Attorney Andrew Gentin of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Douglas McCormick of the U.S. Attorney’s Office for the Central District of California. The case was investigated by the FBI’s Washington Field Office, and its team of special agents dedicated to the investigation of foreign bribery cases. Significant assistance was provided by the Criminal Division’s Office of International Affairs.
An indictment is merely an accusation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Houston Computer Administrator Sentenced to 12 Months in Prison for Hacking Former Employer’s Computer NetworkRead the Press Release
WASHINGTON – A former senior database administrator for GEXA Energy in Houston was sentenced today to 12 months in prison for hacking into his former employer’s computer network, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Jose Angel Moreno for the Southern District of Texas.
Steven Jinwoo Kim, 40, of Houston pleaded guilty on Nov. 16, 2009, to one count of intentionally accessing a protected computer without authorization and recklessly causing damage. Kim was sentenced today by U.S. District Judge Vanessa D. Gilmore in the Southern District of Texas. Kim was also ordered to pay $100,000 in restitution to GEXA Energy and to serve three years of supervised release following his prison term.
According to court documents, on Feb. 5, 2008, GEXA Energy terminated Kim from his position as a senior database administrator and revoked all his administrative rights and access to the GEXA Energy computer network. In pleading guilty, Kim admitted that in the early hours of April 30, 2008, he used his home computer to connect to the GEXA Energy computer network and a database that contained information on approximately 150,000 GEXA Energy customers. While connected to the computer network, Kim recklessly caused damage to the computer network and the customer database by inputting various Oracle database commands. Kim also copied and saved to his home computer a database file containing personal information on the GEXA Energy customers, including names, billing addresses, social security numbers, dates of birth and drivers license numbers. According to court documents, Kim’s actions caused a $100,000 loss to GEXA Energy.
The case was prosecuted by Trial Attorney Thomas Dukes of the Criminal Division’s Computer Crime and Intellectual Property Section, and by Special Assistant U. S. Attorney Bret Davis representing the U.S. Attorney’s Office for the Southern District of Texas. The case was investigated by the U.S. Secret Service.
Citing Conflict with Federal Law, Department of Justice Challenges Arizona Immigration LawRead the Press Release
WASHINGTON - The Department of Justice challenged the state of Arizona’s recently passed immigration law, S.B. 1070, in federal court today.
In a brief filed in the District of Arizona, the Department said S.B. 1070 unconstitutionally interferes with the federal government’s authority to set and enforce immigration policy, explaining that “the Constitution and federal law do not permit the development of a patchwork of state and local immigration policies throughout the country.” A patchwork of state and local policies would seriously disrupt federal immigration enforcement. Having enacted its own immigration policy that conflicts with federal immigration law, Arizona “crossed a constitutional line.”
The Department’s brief said that S.B. 1070 will place significant burdens on federal agencies, diverting their resources away from high-priority targets, such as aliens implicated in terrorism, drug smuggling, and gang activity, and those with criminal records. The law’s mandates on Arizona law enforcement will also result in the harassment and detention of foreign visitors and legal immigrants, as well as U.S. citizens, who cannot readily prove their lawful status.
In declarations filed with the brief, Arizona law enforcement officials, including the Chiefs of Police of Phoenix and Tucson, said that S.B. 1070 will hamper their ability to effectively police their communities. The chiefs said that victims of or witnesses to crimes would be less likely to contact or cooperate with law enforcement officials and that implementation of the law would require them to reassign officers from critical areas such as violent crimes, property crimes, and home invasions.
The Department filed the suit after extensive consultation with Arizona officials, law enforcement officers and groups, and civil rights advocates. The suit was filed on behalf of the Department of Justice, the Department of Homeland Security, and the Department of State, which share responsibilities in administering federal immigration law.
“Arizonans are understandably frustrated with illegal immigration, and the federal government has a responsibility to comprehensively address those concerns,” Attorney General Holder said. “But diverting federal resources away from dangerous aliens such as terrorism suspects and aliens with criminal records will impact the entire country’s safety. Setting immigration policy and enforcing immigration laws is a national responsibility. Seeking to address the issue through a patchwork of state laws will only create more problems than it solves.”
“With the strong support of state and local law enforcement, I vetoed several similar pieces of legislation as Governor of Arizona because they would have diverted critical law enforcement resources from the most serious threats to public safety and undermined the vital trust between local jurisdictions and the communities they serve,” Department of Homeland Security Secretary Janet Napolitano said. “We are actively working with members of Congress from both parties to comprehensively reform our immigration system at the federal level because this challenge cannot be solved by a patchwork of inconsistent state laws, of which this is one. While this bipartisan effort to reform our immigration system progresses, the Department of Homeland Security will continue to enforce the laws on the books by enhancing border security and removing criminal aliens from this country.”
The Department has requested a preliminary injunction to enjoin enforcement of the law, arguing that the law’s operation will cause irreparable harm.
“Arizona impermissibly seeks to regulate immigration by creating an Arizona-specific immigration policy that is expressly designed to rival or supplant that of the federal government. As such, Arizona’s immigration policy exceeds a state’s role with respect to aliens, interferes with the federal government’s balanced administration of the immigration laws, and critically undermines U.S. foreign policy objectives. S.B. 1070 does not simply seek to provide legitimate support to the federal government’s immigration policy, but instead creates an unprecedented independent immigration scheme that exceeds constitutional boundaries,” the Department said in its brief.
Download the Supporting Documents:
Complaint Filed (PDF)
Arizona PI Brief (PDF)
Declaration of U.S. Immigration and Customs Enforcement Executive Associate Director for Management and Administration Daniel Ragsdale (PDF)
Declaration of U.S. Customs and Border Protection Deputy Commissioner David Aguilar (PDF)
Declaration of U.S. Immigration and Customs Enforcement Law Enforcement Support Center Unit Chief David Palmatier (PDF)
Declaration of U.S. Citizenship and Immigration Services Records Division Chief Dominick Gentile (PDF)
Declaration of U.S. Department of Homeland Security Deputy Assistant Secretary for International Policy and the current Acting Assistant Secretary for International Affairs Mariko Silver (PDF)
Declaration of Senior Advisor to the Director of U.S. Citizenship and Immigration Services Michael Aytes (PDF)
Declaration of T ucson Police Department Chief Roberto Villasenor (PDF)
Declaration of Phoenix Police Department Chief Jack Harris (PDF)
Declaration of Santa Cruz County, Ariz., Sheriff Tony Estrada (PDF)Three Arizona Men Sentenced for Illegally Possessing a Golden EagleRead the Press Release
WASHINGTON—Three men were sentenced today in federal court in Flagstaff, Ariz., for illegally possessing a protected golden eagle, the Justice Department announced.
Arthur Batala, Darrell Batala and Steven Silas, all members of the Hopi Indian Tribe of Arizona, were sentenced for taking and possessing a golden eagle in violation of the Migratory Bird Treaty Act, a federal law that protects most species of birds in the United States. Magistrate Judge Mark E. Aspey of the U.S. District Court for the District of Arizona sentenced Art Batala to pay $500 restitution and serve two years of probation, Darrell Batala to pay $500 restitution and serve one year of probation and Silas to pay $500 restitution and serve one year of supervised probation.
Eagles are viewed as sacred in many Native American cultures, and the feathers and other parts of the birds are central to Native American religions and customs. By law under the Migratory Bird Treaty and Bald and Golden Eagle Protection Acts, enrolled members of federally recognized Indian tribes may obtain permits to take eagles for religious purposes, but federal law prohibits the sale of bald and golden eagles or their feathers and other parts.
The U.S. Fish and Wildlife Service operates the National Eagle Repository, which collects eagles nationwide that die naturally, by accident or other means, to supply enrolled members of federally recognized tribes with eagle parts for their religious use.
The case was investigated by the U.S. Fish and Wildlife Service’s Office of Law Enforcement, the Hopi Resource Enforcement Services, and the Navajo Nation Department of Fish and Wildlife. The case was prosecuted by the Justice Department’s Environmental Crimes Section.
Northern Virginia Business Owner Indicted for Failing to Pay Employment TaxesRead the Press Release
WASHINGTON - Eric Jon Eisenhower, a resident of Fairfax Station, Va., was arraigned in federal court in Alexandria, Va., on an indictment that alleges that he failed to collect, account for and pay over to the Internal Revenue Service (IRS) more than $200,000 in withholdings from employees’ paychecks between 2004 and 2008, the Justice Department and IRS announced today.
According to court documents, Eisenhower was the president of CoManage Inc., a computer software development company. From December 2004 through June 2008, Eisenhower failed to pay over to the IRS CoManage’s employees’ withholdings for Social Security, Medicare and federal income taxes. U.S. District Court Judge Ellis set Eisenhower’s trial for Sept. 8, 2010.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Eisenhower faces a maximum of 75 years in prison and a maximum fine of $150,000.
This case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Mark Lytle and Tax Division Trial Attorney Caryn Mark are prosecuting the case on behalf of the United States.
Five Defendants Sentenced for Child Pornography Crimes Uncovered as a Result of International InvestigationRead the Press Release
WASHINGTON – Four defendants were sentenced today in connection with their participation in an online child pornography conspiracy, while a fifth defendant was sentenced for receiving child pornography, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Timothy M. Morrison of the Southern District of Indiana.
Michael Baratta, 49, of Sacramento, Calif., was sentenced to 15 years in prison for his role in the conspiracy as an administrator of an online bulletin board dedicated to the advertisement and distribution of child pornography. Scott Van Dorp, 51, of Nashville, Ind., also was sentenced to 15 years in prison for the role he played in the conspiracy and for his criminal conduct related to a second Internet bulletin board containing child pornography. William Watkins, 39, of Lake Worth, Fla., was sentenced to 15 years in prison for his role in the conspiracy as a moderator of the Internet-based bulletin board. March Beren Reeder, 33, of Harrisburg, Pa., was sentenced to 10 years in prison for his participation in the conspiracy.
All four defendants pleaded guilty in Indianapolis before U.S. District Court Judge William T. Lawrence to one count of conspiracy to advertise child pornography, one count of conspiracy to distribute child pornography, two counts of advertising child pornography and two counts of distributing child pornography. Van Dorp also pleaded guilty to one count of conspiracy to advertise child pornography and one count of conspiracy to distribute child pornography for his role in the second Internet bulletin board. Each defendant was sentenced to a lifetime of supervised release following their release from prison.
According to court documents filed in the Southern District of Indiana, the 26 co-conspirators participated in a sophisticated, password-protected Internet bulletin board group, which existed to allow members to meet like-minded individuals with a sexualized interest in children, to discuss that interest and to trade images of child pornography. The defendants are charged with conspiring to advertise and distribute child pornography, along with substantive counts of advertising and distributing child pornography. Twenty-two of the 26 defendants charged in the conspiracy have been arrested. Twenty of the 22 individuals arrested have been convicted or have pleaded guilty. Nine of the 20 individuals who have pleaded guilty for their role in the conspiracy have been sentenced to prison on previous dates.
Four of the 26 individuals charged in the conspiracy remain at large and are known only by their online identities. Efforts to identify and apprehend these four individuals continue.
In a separate case, Christopher Philpot of Rushville, Ind., was sentenced today to 60 months in prison and lifetime supervised release following his prison term for receiving child pornography. Philpot, 32, pleaded guilty on April 17, 2009, in Indianapolis before Judge Lawrence to one count of receipt of child pornography.
The charges against Baratta, Van Dorp, Watkins, Reeder and 22 co-defendants, as well as against Philpot, are a result of “Operation Nest Egg,” an ongoing and joint investigation led by the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), the U.S. Attorney’s Office for the Southern District of Indiana, the U.S. Postal Inspection Service (USPIS) and U.S. Immigration and Customs Enforcement (ICE). Operation Nest Egg, launched in February 2008 targeted approximately 500 additional individuals located throughout the world for their involvement in an online group dedicated to trading images of child pornography.
As a result of Operation Nest Egg more than 80 searches have been conducted to date in the United States. In total, more than 50 individuals have been arrested and 38 individuals have been convicted. The investigation is ongoing. Numerous members of the Internet-based bulletin board were found to have been personally sexually abusing children, sometimes producing images of the sexual abuse. For example, lead administrator Delwyn Savigar of the United Kingdom was identified and arrested in partnership with the U.K.’s Child Exploitation and Online Protection Centre for his involvement in the conspiracy. After his initial arrest, Savigar was identified through DNA testing as the perpetrator of a previously unsolved sexual assault against a minor female in Great Britain, to which he pleaded guilty. Following this discovery, Savigar was linked to additional incidents of sexual assaults. Ultimately, he pleaded guilty to either abusing or attempting to abuse three minors from 1999 to 2002. He was sentenced to 14 years in prison in the United Kingdom. To date, 16 child victims have been identified through Operation Nest Egg.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The cases are being prosecuted by Assistant U.S. Attorney Steven D. DeBrota of the Southern District of Indiana, Assistant U.S. Attorney of the Eastern District of Virginia and former CEOS Trial Attorney Elizabeth M. Yusi and CEOS Trial Attorney Alecia Riewerts Wolak. CEOS Trial Attorney Anitha S. Ibrahim also prosecuted the case against Philpot. The investigation was conducted jointly by CEOS’ High Technology Investigative Unit, USPIS and ICE, with assistance provided by the Indiana Internet Crimes Against Children (ICAC) Taskforce, Indiana State Police and numerous local and international law enforcement agencies across the United States and Europe.
Philadelphia Drug Dealer Sentenced to 70 Months in PrisonRead the Press Release
WASHINGTON - Quang Nguyen, 22, of Philadelphia was sentenced today by U.S. District Court Judge Paul S. Diamond to 70 months in prison for his role in distributing large amounts of marijuana and ecstasy pills in the United States, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Zane David Memeger for the Eastern District of Pennsylvania. Nguyen was also ordered to pay a $1, 250 fine and to serve a five-year term of supervised release following his prison term.
Nguyen pleaded guilty on March 9, 2010, to conspiracy to distribute ecstasy, conspiracy to distribute marijuana, distribution of ecstasy and distribution of marijuana. According to the sentencing memo, Nguyen and others conducted their operations from a Philadelphia-area hotel, including receiving shipments of marijuana and selling drugs to customers from the hotel.
According to court documents, large amounts of ecstasy, methamphetamine and marijuana are produced in Canada, smuggled into United States, transported to the Eastern District of Pennsylvania, and then further distributed around the East Coast of the United States. For the past several years, the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Criminal Division’s Organized Crime & Racketeering Section (OCRS), U.S. Immigrations and Customs Enforcement (ICE), the Drug Enforcement Administration (DEA) and Canadian law enforcement agencie s have been working closely together combat drug smuggling and money laundering between the United States and Canada
The case was prosecuted by OCRS Trial Attorney Robert J. Livermore. The case was investigated by ICE special agents. The DEA, the Pennsylvania State Police and the Philadelphia Police Department also provided assistance on this investigation.
New Jersey UBS Client Pleads Guilty to Failing to Report More Than $2 Million in Swiss Bank AccountRead the Press Release
A Milltown, N.J., man pleaded guilty today to a federal charge of willfully subscribing to a false tax return, admitting he concealed over $2 million in a Swiss bank account, Acting Assistant Attorney General John A. DiCicco of the Justice Department’s Tax Division and U.S. Attorney Paul J. Fishman announced.
Leonid Zatlsberg made his first appearance in federal court and pleaded guilty before U.S. District Judge Stanley R. Chesler. Judge Chesler released the defendant on a $750,000 bond pending sentencing, which is scheduled for Nov. 17, 2010.
According to court documents filed in this case and statements made during today’s guilty plea proceeding, Zaltsberg admitted that he signed and filed a false tax return for 2003 that failed to disclose his UBS account and income generated from the account’s assets. Zaltsberg also failed to file a Report of Foreign Bank or Financial Accounts (FBAR) with respect to the UBS account. The account, originally opened in 1993, was transferred into the name of Belton Capital Corp., a nominee Panamanian corporation, in 2000. Zaltsberg established Belton in late 2000 with the assistance of a foreign lawyer and a Swiss banker, in order to hide this account from the Internal Revenue Service (IRS).
U.S. citizens who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III of their individual income tax return. Additionally, U.S. citizens must file an FBAR with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest, or over which they have signature or other authority.
Zaltsberg admitted that his failure to file the FBAR and his failure to disclose the existence of the UBS account on his personal income tax returns allowed him to under-report personal income for the years 2000 through 2006. In 2002, the account reached a high balance of over $2.6 million.
In April 2010, another New Jersey resident and UBS client, Harry Abrahamsen, of Oradell, pleaded guilty to failing to file an FBAR.
In September 2009, UBS client Juergen Homann of Saddle River, N.J., also pleaded guilty to failing to file an FBAR.
In February 2009, UBS entered into a deferred prosecution agreement pursuant to which the bank admitted to helping U.S. taxpayers hide accounts from the IRS. As part of their agreement, UBS provided the U.S. government with the identities of, and account information for, certain U.S. customers of UBS’ cross-border business.
At sentencing, Zaltsberg faces a maximum sentence of three years in prison and a maximum fine of $250,000, or twice the amount of financial gain to the defendant or loss to the IRS. Additionally, Zaltsberg has agreed to pay a 50 percent civil FBAR penalty for the calendar year, from 2000 through 2007, with the highest balance in the UBS account.
Acting Assistant Attorney General DiCicco and U.S. Attorney Fishman commend the Special Agents of the IRS, under the direction of William P. Offord in Springfield, N.J., who investigated the case.
The government is represented by Assistant U.S. Attorney Stacey A. Levine and Trial Attorney Michael C. Vasiliadis of the Department of Justice’s Tax Division.
Jury Convicts District of Columbia Fish Wholesaler & Two Employees for Purchasing Illegally Harvested Striped BassRead the Press Release
WASHINGTON—Following a five-week trial, a fish wholesaler and two of its employees were found guilty with purchasing illegally harvested striped bass, known locally as rockfish, from the Potomac River in Virginia and Maryland from 1995 through 2007, the Justice Department announced today.
Ocean Pro Ltd. d/b/a Profish, one of the largest District of Columbia seafood wholesalers, its vice-president Timothy Lydon of Bethesda, Md., and its fish buyer, Benjamin Clough of Graysonville, Md., were all convicted of a felony conspiracy to violate the Lacey Act. Ocean Pro and Lydon were also convicted of three felony Lacey Act violations, and Clough was convicted of three Lacey Act violations and a felony false statement charge. The Lacey Act is a federal law that prohibits individuals or corporations from transporting, selling or buying fish and wildlife harvested illegally.
Profish and Lydon began buying striped bass from Virginia fishermen fishing on the Potomac River in 1995. Lydon and Profish agreed to buy striped bass that they knew was illegally harvested by seven fishermen between 1995 and 2007. Clough joined Profish in 2001, and he continued to knowingly purchase the illegally harvested striped bass through 2007. In total, the defendants purchased over 270,000 pounds of striped bass illegally harvested from Maryland and Virginia waters, with a fair market retail value over $1.6 million. Evidence was also introduced at trial that they altered records regarding their striped bass purchases, and changed records indicating the harvest date on shellfish to make it appear that they were harvested more recently than they were.
Commercial striped bass fishermen are given a quota that they are allowed to catch each year. The fishermen are issued a set number of plastic tags that they are required to affix to every striped bass harvested. In addition, during certain times of the spring, commercial striped bass fishing is prohibited, or, if allowed, a maximum striped bass size limit is imposed that prohibits the harvest of striped bass over that size. The quota restrictions and tagging requirements are designed to prevent the over-harvest of striped bass, and the seasonal closing and size restrictions are designed to protect striped bass while they are spawning and to protect the larger, sexually mature and more productive spawning fish. These restrictions were implemented in the early 1990s following the crash of the striped bass fishery in the 1980s, which resulted in a moratorium on commercial striped bass harvest from 1985 to 1990.
Profish, Lydon, and Clough were willing to buy commercially caught striped bass, which were over the applicable size limit during the spawning season and did not have the required tags affixed. This allowed commercial fishermen to catch and sell more striped bass than they were allowed, and to catch and sell protected spawning striped bass from 1995 through 2007.
In early spring each year, striped bass (Morone saxatilis), known regionally as rockfish, enter the estuary or river where they were born to spawn, and then return to ocean waters to live, migrating along the coastline. Fish spawned from the Chesapeake Bay ecosystem contribute the greatest number of striped bass to the Atlantic coastal fishery, and the commercial fishery for Atlantic coastal striped bass is based primarily on migrations of fish born in the Chesapeake Bay area. Striped bass do not die after spawning. They may live up to 30 years and reach 50 pounds or more. The population of coastal Atlantic striped bass depends heavily upon the capability of older, larger, female striped bass to successfully reproduce.
The charges are a result of the investigation by an interstate task force formed by the U.S. Fish and Wildlife Service, the Maryland Natural Resources Police and the Virginia Marine Police, Special Investigative Unit in 2003. The task force conducted undercover purchases and sales of striped bass in 2003, engaged in covert observation of commercial fishing operations in the Chesapeake Bay and Potomac River area, and conducted detailed analysis of area striped bass catch reporting and commercial business sales records from 2003 through 2007.
To date, including these convictions, the task force has resulted in felony 22 felony convictions: fourteen fishermen from Maryland and Virginia, five individuals who operated seafood wholesale companies, and three seafood wholesale companies in Maryland, Virginia, and the District of Colombia.
These cases were prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the District of Maryland.
Statement of the Attorney General Following Meetings with Afghan President Karzai, Minister of Justice, Attorney GeneralRead the Press Release
KABUL, AFGHANISTAN – Attorney General Eric Holder met with Afghan President Hamid Karzai, Minister of Justice Habibullah Ghalib and Attorney General Mohammad Ishaq Aloko today to discuss the department’s ongoing efforts to foster the rule of law in Afghanistan.
At the conclusion of the meetings, the Attorney General made the following statement:
I am pleased to be in Kabul today and to have had the opportunity to meet with President Karzai, Minister of Justice Ghalib, Attorney General Aloko and other distinguished Afghan officials.
The United States is committed to succeeding in Afghanistan and breaking the Taliban’s momentum. As we heard President Obama say on June 23, the United States will "persist and persevere" and "we will not tolerate a safe haven for terrorists who want to destroy Afghan security from within, and launch attacks against innocent men, women and children in our country and around the world."
There is no clearer sign of our commitment to Afghanistan than President Obama’s appointment of General David Petraeus as Commander of the International Security Assistance Force. General Petraeus fully participated in the U.S. policy review last fall, and he both supported and helped design the strategy that we have in place today.
We have watched with interest from Washington the positive steps President Karzai and his Cabinet have taken to help improve governance and enforce the rule of law. We applaud President Karzai for his actions and encourage him to continue his efforts as much work remains to be done.
The long-term stability of Afghanistan lies in the hands of the Afghan people. A key pillar of achieving stability is adherence to the rule of law. The United States is committed to partnering with Afghanistan to ensure that all Afghan citizens have access to a fair, efficient and transparent justice system. Rule of law should be an important dimension of the long-term U.S.-Afghan strategic partnership.
The support and commitment of the United States to improving the lives of the Afghan people and establishing the rule of law will outlast any military presence in the country. The Strategic Partnership that will be signed by our two Presidents by the end of this year will codify this long-term commitment.
And I personally commit that we will continue the partnerships that the U.S. Department of Justice has developed here in Afghanistan. We have sent some of our most experienced federal prosecutors and law enforcement agents – from our Criminal Division, the U.S. Attorneys’ Offices, the FBI, the DEA and the U.S. Marshals Service – to work here with their Afghan law enforcement counterparts. I am glad to have had the opportunity to meet with them today and to thank them for their service to the United States and to Afghanistan. We are proud to be standing with Afghanistan in the fight against corruption, narcotics trafficking and terrorism. The law enforcement partnerships we have established will endure.
Phoenix Attorney and Two Accountants Plead Guilty to Participation in Fraudulent Offshore Tax Shelter SchemeRead the Press Release
Attorney Steven W. Allen pleaded guilty in federal court in Arizona to taking part in a conspiracy to defraud the Internal Revenue Service (IRS) by promoting a fraudulent offshore trust scheme to hide his clients’ income, the Justice Department and IRS announced today. Allen P. Goodmansen, a certified public accountant, pleaded guilty to participating in the same conspiracy. Charles D. Kober, an accountant, pleaded guilty to aiding and assisting in the preparation of a false tax return for a client who used the trust scheme.
According to the indictment and the plea agreements, from at least 1997 to 2004, Allen, Goodmansen and others, participated in a scheme to help their clients evade their income taxes. Allen set up a series of offshore trusts in which his clients hid their income from the IRS. Allen also helped his clients hide their ownership of businesses and other assets by directing them to title their businesses and other assets in the names of their foreign trusts. Allen charged his clients between $10,000 and $30,000 to set up the trust packages.
The indictment and plea agreements further state that, at Allen’s direction, accountants Goodmansen and Kober prepared false trust tax returns to create the appearance that their clients’ income belonged to their trusts. Goodmansen and Kober also prepared fraudulent personal tax returns for some of their clients. These fraudulent tax returns omitted the income that the clients hid through the foreign trusts. To hide the fact that the scheme was taking place in Arizona, Allen caused the false trust tax returns to be mailed to the IRS from outside the United States. In fact, none of the clients’ money or other assets were outside of the United States. Goodmansen also personally used the scheme in 2002 to hide his own income from the IRS.
Allen and Goodmansen face a maximum sentence of five years in prison and a fine of $250,000. Kober faces a maximum sentence of three years in prison and a fine of $250,000. Allen will be sentenced on Sept. 20, 2010, and Goodmansen and Kober will be sentenced on Sept. 13, 2010.
This case was investigated by IRS Criminal Investigation in Phoenix, and is being prosecuted by Tax Division Trial Attorneys Monica B. Edelstein and Michael J. Romano.
More information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax/.
North Carolina MS-13 Members Sentenced to Prison for Role in Racketeering ConspiracyRead the Press Release
WASHINGTON – Seven members of the gang known as La Mara Salvatrucha, or MS-13, were sentenced to prison Tuesday for their participation in a racketeering enterprise, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Anne M. Tompkins for the Western District of North Carolina.
All seven defendants were sentenced by Chief U.S. District Judge Robert J. Conrad Jr. of the Western District of North Carolina.
· Heverth Ulises Castellon, aka “Misterio” and “Sailor,” was sentenced to 240 months in prison and five years of supervised release;
· Jaime Sandoval, aka “Pelon,” was sentenced to 222 months in prison and five years of supervised release;
· Jose Efrain Ayala-Urbina, aka “Peligroso,” was sentenced to 168 months in prison and five years of supervised release;
· Santos Canales-Reyes, aka “Chicago,” was sentenced to 144 months in prison and five years of supervised release;
· Alexi Ricardo Ramos, aka “Pajaro,” was sentenced to 108 months in prison and five years of supervised release;
· Mario Guarjardo-Garcia, aka “Speedy,” “Iran Guerrero-Gomez,” and “Luis Angel Galindo,” was sentenced to 94 months in prison and five years of supervised release; and
· Nelson Hernandez-Ayala, aka “Sixteen,” was sentenced to 42 months in prison and three years of supervised release.
“These prison sentences send a strong message that participating in a gang like MS-13 will have serious consequences,” said Assistant Attorney General Breuer. “The Department of Justice and our partners in state and local law enforcement will continue aggressively to prosecute and seek significant prison sentences for individuals who participate in violent, criminal organizations.”
“The impact of gang-related criminal activities on a community like Charlotte is a major concern of law enforcement and residents. The U.S. Attorney’s Office, along with our law enforcement partners, pledges to continue with our swift and thorough response to gangs who persist as substantial threats to our public safety,” said U.S. Attorney Tompkins.
On May 18, 2010, four other MS-13 members were sentenced to prison for their participation in the same conspiracy.
· Yelson Olider Castro-Licona, aka “Diablo,” was sentenced to 75 months in prison and three years of supervised release;
· Oscar Manuel Moral-Hernandez, aka “Truchon,” was sentenced to 34 months in prison and three years of supervised release;
· Manuel Cruz, aka “Silencioso,” was sentenced to 27 months in prison and three years of supervised release; and
· Javier Molina, aka “Big Psycho” and “Gringo,” was sentenced to time served and three years of supervised release.
All 11 defendants previously pleaded guilty to a racketeering conspiracy (RICO) charge, admitting that they conspired to participate in a pattern of racketeering activity with others involved in the MS-13 gang in the Western District of North Carolina and elsewhere from approximately 2003 until July 27, 2009. This activity included murder, robbery, extortion, witness tampering, obstruction of justice, distribution and possession with intent to distribute cocaine and marijuana, and various federal firearms violations.
The RICO count to which all eleven defendants pleaded guilty charged that each defendant, along with others, were involved in the MS-13 gang throughout North Carolina, including Mecklenburg, Guilford, Wake, and Durham counties, and elsewhere. According to court documents, each of the individuals was required to complete an initiation process, often referred to as being “jumped in” or “beat in,” in order to join MS-13. Court documents further describe that each member engaged in criminal activity and was sometimes required to commit acts of violence to maintain membership and discipline within the gang, including violence against rival gangs. Gang members were responsible for preserving and protecting the power, territory, reputation and profits of the gang through the use of intimidation, violence, threats of violence, assaults and murder.
The RICO conspiracy charge was part of an indictment originally returned by a federal grand jury in Charlotte, N.C., in June 2008. The indictment charged 26 members of MS-13 with conspiring to participate in the affairs of a racketeering enterprise and the related criminal charges. Six of the 26 members were convicted in January 2010 by a federal jury in Charlotte of criminal charges including the RICO conspiracy, murder, attempted murder, assault, cocaine trafficking and numerous related federal firearms offenses. Those six defendants are currently in federal custody awaiting sentencing.
According to the indictment, the MS-13 gang is a violent international criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador. The purpose of the racketeering enterprise and conspiracy was to preserve and protect the power, territory and profits of the MS-13 enterprise through violent assault, murder, threats of violence and intimidation.
On April 19, 2010, a federal jury found Alejandro Enrique Ramirez Umana guilty of the RICO count; two counts of murder in aid of MS-13; two counts of murder resulting from the use of a gun in a violent crime; possession of a firearm by an illegal alien; one count of extortion; and two criminal counts associated with witness tampering or intimidation. On April 28, 2010, the federal jury voted unanimously to impose the death penalty against Umana. Umana is also currently in federal custody awaiting a July 27, 2010, formal sentencing hearing.
The long-term investigation was initiated by the FBI’s North Carolina “Safe Streets” Gang Task Force when a witness came forward with information about the violent operations of a single MS-13 cell operating out of the Charlotte area. The Task Force is composed of the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Immigration and Customs Enforcement, the Charlotte-Mecklenburg Police Department, and the Gastonia, N.C., Police Department. The FBI’s MS-13 National Gang Task Force played a significant role in coordinating the international aspects of the investigation, and additional critical assistance was provided by the Transnational Anti-Gang (TAG) Center. Additional investigative support was provided by the North Carolina State Bureau of Investigation, as well as the Greensboro Police Department and the Durham Police Department. Substantial assistance has been afforded by the U.S. Marshals Service for the Western District of North Carolina. The investigation of the wide-sweeping enterprise resulted in the prosecution of 26 MS-13 members. Eighteen of the defendants have pleaded guilty to the RICO conspiracy in the indictment. Eleven of those defendants have now been sentenced and seven other defendants who have pleaded guilty await sentencing.
The case was prosecuted by Assistant U.S. Attorneys Kevin Zolot, Jill Rose and Adam Morris from the U.S. Attorney’s office for the Western District of North Carolina, and Trial Attorney Sam Nazzaro from the Criminal Division’s Gang Unit.
Founder and Treasurer of Labor Union Charged with Mail FraudRead the Press Release
The founder and treasurer of the National Association of Special Police and Security Officers (NASPSO) was charged with four counts of mail fraud in connection with his operation of a pension plan for members of NASPSO, a labor union representing private security guards assigned to protect federal buildings in the metro Washington area. The charges were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; Mabel Capolongo, Director of the Philadelphia Regional Office of the Employee Benefits Security Administration of the Department of Labor; and Robert L. Panella, Special Agent in Charge of the Office of Inspector General, Office of Labor Racketeering and Fraud Investigations of the Washington, D.C. , Regional Office.
Caleb Gray-Burriss, 59, of Washington, was arrested Tuesday in Washington, and charged in an indictment returned by a grand jury on June 25, 2010, and unsealed today. Gray-Burriss will make his initial appearance tomorrow in U.S. District Court in Washington.
The indictment charges that, from approximately June 2004 through August 2006, Gray-Burriss wrote numerous checks to himself or to other third parties from the checking account where he had placed funds intended for the NASPSO pension plan to cash. The indictment alleges that Gray-Burriss spent more than $100,000 of the pension plan funds in this way, while at the same time falsely maintaining that it was an operational fund that he was properly administering and that was providing benefits to the beneficiaries.
The investigation leading to the indictment and arrest of Gray-Burriss was conducted by investigators from two agencies of the U.S. Department of Labor – the Employee Benefits Security Administration and the Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. The case is being prosecuted by Trial Attorney Vincent Falvo of the Criminal Division’s Organized Crime and Racketeering Section.
Five Brothers Charged in Human Trafficking Scheme That Smuggled Young Ukrainian MigrantsRead the Press Release
WASHINGTON - An indictment unsealed today in Philadelphia charged Omelyan Botsvynyuk, Stepan Botsvynyuk, Mykhaylo Botsvynyuk, Dmytro Botsvynyuk, and Yaroslav Botsvynyuk, a/k/a Yaroslav Churuk, with extortion and conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO) for their alleged involvement in a human trafficking operation, the Justice Department announced.
Assistant Attorney General for Civil Rights Thomas E. Perez, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, FBI Special Agent-in-Charge Janice K. Fedarcyk of the Philadelphia Field Office and ICE Special Agent-in-Charge John P. Kelleghan announced the indictment.
Four of the Botsvynyuk brothers were arrested today and are charged with conspiring to engage in a pattern of racketeering activity, from the fall of 2000 through the spring of 2007, by operating a human trafficking organization that smuggled young Ukrainian migrants into the United States and forced them to work for the brothers with little or no pay.
According to the indictment, the defendants promised the victims they would earn $500 per month with free room and board by working for the Botsvynyuk organization. They smuggled the workers into the United States and put them to work as cleaning crews in retail stores, private homes and office buildings without paying them. They used physical force, threats of force, sexual assault and debt bondage to keep the victims in involuntary servitude. The indictment further alleges that even after some of the victims escaped, the defendants continued with their extortionist activities in order to recoup the organization’s investment in the workers. If direct threats failed and the workers did not return or make good on their debts, the Botsvynyuk brothers threatened violence to the workers’ families still residing in Ukraine. In one instance, according to the indictment, Omelyan Botsvynyuk threatened to place a worker’s then nine-year-old daughter into prostitution to pay off the family debt.
"Human trafficking is a scourge that denies human beings their fundamental right to freedom. Those who prey on the most vulnerable through force, fraud or coercion will be investigated and prosecuted to the fullest extent of the law," said Assistant Attorney General Perez. "The Civil Rights Division will continue to work with U.S. Attorney's Offices nationwide, law enforcement agencies across the globe, and victim assistance organizations to vindicate the rights of victims, bring traffickers to justice and dismantle human trafficking networks."
"The victims in this case entered this country with dreams of great opportunity only to find themselves living a nightmare," said U.S. Attorney Memeger. "They trusted this band of brothers, they performed the work they were told only to be rewarded with false promises, threats of brutality, and deprivation of their basic human needs. No one trying to immigrate to this country should have to endure such mistreatment."
Rather than bringing the workers to the United States legally, the indictment alleges that the Botsvynyuk organization obtained tourist visas to Mexico and had operatives who coached the workers on how to enter the United States illegally. While some of the workers successfully entered the country, others were taken into custody by U.S. immigration officials and remained in detention for almost two months. Once the victims were released, with immigration documents and summonses to appear for immigration hearings, the Botsvynyuk organization transported them to Philadelphia either by bus or by plane. The brothers then confiscated the immigration documents and summonses from the workers and put them to work at night cleaning large chain stores, such as Target and Walmart, as well as smaller stores.
Throughout their employment with the brothers, the workers lived with up to five people in one room, slept on dirty mattresses on the floor, and were rarely, if ever, paid. None of the victims was paid what was promised and they were told that they had to continue working until their debts, ranging from $10,000 to $50,000, were paid. Workers were allegedly struck and beaten, sometimes in the presence of others, if they attempted to quit or leave the employ of the Botsvynyuk brothers. According to the indictment, one female worker was brutally raped on several occasions. After some workers escaped, Omelyan Botsvynyuk resorted to extorting the workers’ families in Ukraine, threatening them with harm if the workers did not return to work or pay their debts.
Omelyan Botsvynyuk, 51, was arrested in Germany; Stepan Botsvynyuk, 35, was arrested in Philadelphia; Mykhaylo and Yaroslav Botsvynyuk, 41, were arrested in Canada. Dmytro Botsvynyuk remains in Ukraine, a country that has not entered into an extradition treaty with the United States. The defendants in Canada and Germany were arrested pursuant to Interpol arrest warrants and are in the process of being extradited to the United States to face the charges.
If convicted of all charges, the defendants face the following maximum penalties: Omelyan Botsvynyuk - life in prison and a $750,000 fine; Stepan Botsvynyuk - 40 years in prison and a $500,000 fine; and defendants Mykhaylo, Dmytro, and Yaroslav Botsvynyuk - 20 years in prison and a $250,000 fine.
The case was investigated by the Joint FBI Organized Crime/ICE Human Trafficking Alien Smuggling Task Force. Assistance was provided by Pennsylvania State Police, the Philadelphia Police Department, the Department of Labor and Racketeering - Office of Inspector General, Toronto Police Department, German National Police, Berlin State Police, Ukraine Security Service, US National Central Bureau, the Department of Justice Office of International Affairs, and INTERPOL. It is being prosecuted by Assistant U.S. Attorney Daniel A. Velez, and Trial Attorney Eric Gibson of the Civil Rights Division.
Attorney General Travels to Afghanistan for Meetings with U.S., Afghan OfficialsRead the Press Release
KABUL, AFGHANISTAN – Attorney General Eric Holder arrived in Kabul, Afghanistan today for meetings with Afghan and U.S. officials. The Attorney General will discuss the Department’s ongoing efforts to foster the rule of law in Afghanistan and how the two countries can build lasting relationships between law enforcement agencies and prosecutors.
"Fighting corruption and supporting the rule of law in Afghanistan are top priorities for this Administration, and we will continue to assist the Afghan government in creating and sustaining the effective criminal justice system to which the Afghan people are entitled," Attorney General Holder said.
Department attorneys located in Kabul provide training, mentoring and guidance to the Criminal Justice Task Force, a team of Afghan prosecutors and police investigators responsible for the investigation and prosecution of significant narcotics and narcotics-related (such as corruption and money laundering) offenses before the Central Narcotics Tribunal. The Tribunal has exclusive nationwide jurisdiction for all major narcotics and narcotics-related corruption cases. DOJ attorneys also advise and mentor Afghan prosecutors and investigators in the Attorney General’s Anti-Corruption Unit and Major Crimes Task Force. DOJ attorneys provide advice and assistance in the development of criminal laws and procedures for Afghanistan and offer operational advice and assistance to the U.S. law enforcement agencies posted in Afghanistan.
DEA agents located in Afghanistan work to establish the drug enforcement institutions and capabilities needed to enforce the rule of law in Afghanistan, including successfully identifying, disrupting, and dismantling major drug trafficking organizations that fuel the insurgency and profit from the narco-economy. In addition, FBI agents in Afghanistan support counterterrorism efforts and intelligence gathering as well as Afghanistan’s Major Crimes Task Force, which focuses on anti-kidnapping, anti-corruption, and other organized crime. Personnel from the United States Marshals Service advise and train Afghanistan’s Judicial Security Unit on witness and judicial security.
At the conclusion of his meetings, the first for an Attorney General in Afghanistan, the Attorney General will return to Washington.
Taiwan LCD Producer Agrees to Plead Guilty and Pay $30 Million Fine for Participating in LCD Price-Fixing ConspiracyRead the Press Release
WASHINGTON - A Taiwan thin-film transistor-liquid crystal display (TFT-LCD) panel producer and seller has agreed to plead guilty and to pay a $30 million criminal fine for its role in a global conspiracy to fix the prices of TFT-LCD panels, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court in San Francisco, HannStar Display Corporation, based in Taipei, Taiwan, participated in a conspiracy from Sept. 14, 2001, to Jan. 31, 2006, to fix the prices of TFT-LCD panels sold worldwide. According to the plea agreement, which is subject to court approval, HannStar has agreed to cooperate with the department’s ongoing TFT-LCD investigation.
TFT-LCD panels are used in computer monitors and notebooks, televisions, mobile phones and other electronic devices. By the end of the conspiracy period, the worldwide market for TFT-LCD panels was valued at $70 billion. Companies directly affected by the LCD price-fixing conspiracy are some of the largest computer and television manufacturers in the world, including Apple, Dell and Hewlett Packard.
"The Antitrust Division has thus far charged seven companies and 17 executives as a result of its investigation into the LCD industry, and we are committed to vigorously prosecuting corporations and individuals who engage in this type of price fixing scheme," said Christine Varney, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.
According to the charge, HannStar carried out the conspiracy by agreeing during meetings, conversations and communications to charge prices of TFT-LCD panels at certain pre-determined levels and issuing price quotations in accordance with the agreements reached. As a part of the conspiracy, HannStar exchanged information on sales of TFT-LCD panels for the purpose of monitoring and enforcing adherence to the agreed-upon prices.
HannStar 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, seven companies have pleaded guilty or have agreed to plead guilty and have been sentenced to pay or have agreed to pay criminal fines totaling more than $890 million. Additionally, 17 executives have been charged to date in the department’s ongoing investigation.
Today’s charge is the result of a joint investigation by the Department of Justice Antitrust Division’s San Francisco Field Office and the FBI in San Francisco.
Anyone with information concerning illegal conduct in the TFT-LCD industry is urged to call the Antitrust Division’s San Francisco Field Office at 415-436-6660 or visit www.justice.gov/atr/contact/newcase.htm.
Six Alleged Members of the Almighty Latin King and Queen Nation Indicted for Racketeering ConspiracyRead the Press Release
WASHINGTON – Six alleged members of the gang known as Almighty Latin King and Queen Nation (Latin Kings) have been indicted for their alleged roles in a racketeering conspiracy in Hammond, Ind., and elsewhere, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana.
The indictment, returned by a federal grand jury on June 17, 2010, and unsealed today in Hammond, Ind., charges Alexander Vargas, aka "Pacman," 33, of Highland, Ind.; Sisto Bernal, aka "Cisco," aka "Shug," 44, of Chicago; Jose Zambrano, aka "Speedy," 30, of Sauk Village, Ill.; Jason Ortiz, aka "Creeper," 27, of Chicago; Brandon Clay, aka "Cheddar," aka "Swiss," aka "Slick," 23, of Chicago; and Jermaine Ellis, aka "J-Dog," aka "Donnie Brosco," of Chicago, with conspiracy to engage in racketeering activity. Ortiz and Clay are also each charged with two counts of murder, one count of using and carrying a firearm to commit murder during and in relation to a crime of violence, two counts of murder resulting from the use and carrying of a firearm during and in relation to a crime of violence, one count of possessing a firearm after having been convicted of a felony, and one count of possessing stolen firearms.
The indictment alleges the defendants engaged in a series of acts in furtherance and in promotion of the Latin Kings. As alleged in the indictment, Vargas, Bernal and Zambrano traveled from the Chicago/northwest Indiana area to Texas to meet with the Texas Latin Kings hierarchy on May 29, 2005. As alleged in the indictment, Bernal threatened to "smash" the Texas Latin Kings leadership if they did not comply with the rules established by the Chicago-area Latin Kings hierarchy. During the meeting, Bernal allegedly designated the Texas Latin Kings state enforcer as the person who should communicate between the Texas and Chicago Latin Kings hierarchy.
The indictment also alleges that Ortiz, Clay and Ellis participated in the murder of rival gang members James Walsh and Gonzalo Diaz. The murders took place outside of a bar in Griffith, Ind., in the early morning of Feb. 25, 2007.
Upon conviction, Ortiz and Clay face a maximum sentence of life in federal prison or the death penalty. The remaining defendants face a maximum sentence of 20 years in prison.
Vargas, Bernal, Zambrano, Clay and Ortiz were arrested today. Zambrano made his initial appearance before U.S. Magistrate Judge Andrew Rodovich on Monday, and Vargas, Bernal, Clay and Ortiz made their initial appearance before Judge Rodovich today. Ellis is currently being held in custody in Chicago and will be scheduled for an initial appearance on a later date.
According to the indictment, the Latin Kings is a nation-wide gang that originated in Chicago and has spread throughout the United States. The Latin Kings is a well organized street gang that has specific leadership and is comprised of regions that include multiple chapters.
As alleged in the indictment, the Latin Kings enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, assault and threats against those who violate the rules or pose a threat to the Latin Kings. Members are required to follow the orders of higher-ranking members, including taking on assignments often referred to as "missions." As alleged in the indictment, missions can range from a leader ordering the assault of a rival gang member or a Latin Kings member who had committed a violation of the rules, to the murder of a rival gang member or a Latin Kings member who may have committed an egregious violation of the rules.
This case is being investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement; the National Gang Targeting, Enforcement & Coordination Center (GangTECC); the National Gang Intelligence Center; the Chicago Police Department; the Griffith Police Department; the Highland Police Department; the Hammond Police Department; and the Houston Police Department.
The case is being prosecuted by Joseph A. Cooley of the Criminal Division’s Gang Unit and David Nozick of the U.S. Attorney’s Office for the Northern District of Indiana.
The indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Miami Man Indicted for Purchasing, Selling and Using Stolen Credit Card InformationRead the Press Release
WASHINGTON - A Miami man was charged today with buying, selling and using stolen credit card information, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida; Special Agent in Charge Michael K. Fithen of the U.S. Secret Service, Miami Field Office; and Acting Special Agent in Charge Kenneth T. Jenkins Jr., of the U.S. Secret Service, Criminal Investigative Division.
Juan Javier Cardenas was charged in a three-count indictment returned today by a federal grand jury in Miami with conspiracy to traffic in unauthorized credit card numbers and to possess unauthorized credit card numbers with intent to defraud; trafficking in unauthorized credit card numbers; and fraudulent possession of equipment to make credit cards.
According to the indictment, from November 2007 through May 2009, Cardenas allegedly purchased credit card information that had been stolen and obtained by fraudulent means from co-conspirators whom he met through the Internet. Cardenas allegedly resold that information to others, who used it to make fraudulent credit card purchases. In addition, Cardenas allegedly personally manufactured credit cards using the information he had purchased. In total, Cardenas purchased approximately 26,669 credit card numbers during the course of the scheme charged in the indictment.
If convicted, Cardenas faces maximum sentences of five years in prison on the conspiracy charge, 10 years in prison on the charge of trafficking in unauthorized credit card numbers, and 15 years in prison on the charge of fraudulent possession of equipment to make credit cards. Cardenas also faces fines and terms of supervised release on each of the charged counts, as well as forfeiture of any property or proceeds derived from his criminal activities.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent until convicted through due process of law.
This case is being prosecuted by Assistant U.S. Attorney Marc Osborne of the U.S. Attorney’s Office for the Southern District of Florida and Trial Attorney Joseph E. Springsteen of the Criminal Division’s Computer Crime and Intellectual Property Section. The case is being investigated by the U.S. Secret Service.
Cincinnati Area Man Pleads Guilty to Aegis-Related Tax CrimesRead the Press Release
WASHINGTON – Homer Richardson of Loveland, Ohio, pleaded guilty in federal district court in Cincinnati to corruptly impeding the due administration of the Internal Revenue Code, the Justice Department and Internal Revenue Service (IRS) announced today. Richardson also pleaded guilty to four counts of filing false tax returns for himself and others.
According to court documents, Richardson marketed and promoted sham trusts for the now-defunct Aegis Company. Taxpayers who used these trusts filed false federal individual income tax returns understating their income. Richardson also assisted these taxpayers by obstructing their IRS audits by, among other ways, sending threatening letters to IRS employees and instructing members not to produce records as requested by the IRS. Richardson also filed his own false tax returns which falsely understated his income.
Richardson faces a maximum sentence of 15 years in prison and a $1.25 million fine. Judge Sandra S. Beckwith, who is presiding over the matter, did not schedule a sentencing date.
John A. DiCicco, Acting Assistant Attorney General for the Tax Division; Carter M. Stewart, U.S. Attorney for the Southern District of Ohio; and Jose Gonzalez, Special Agent in Charge, IRS Criminal Investigation, announced the pleas. The case was investigated by IRS Criminal Investigation and is being prosecuted by Tax Division trial attorneys Tom Voracek and Rita Calvin.
California Couple Sentenced for Their Role in Hate-motivated BeatingRead the Press Release
WASHINGTON – Today in Sacramento, Calif., U.S. District Court Judge John A. Mendez sentenced a couple from Fairfield, Calif., for their roles in a July 2007 beating of an American citizen who is originally from India, announced the Department of Justice. Judge Mendez sentenced Joseph Silva, 56, and his wife, Georgia Silva, 52, to 18 months in prison and three years of supervised released.
At the March 2010 trial, the jury heard that the victim was attempting to enjoy El Dorado Beach on Lake Tahoe, Calif., when the Silvas confronted and attacked him. The evidence showed that Georgia Silva initially hurled derogatory racial and ethnic slurs at the victim and his then girlfriend. When the victim called the police, Georgia Silva assaulted the victim, knocking him to the ground. At the trial, the jury heard a recording of the call made by the victim to the police and statements the Silvas were making to the victim.
After knocking the victim to the ground, and while Georgia Silva was on top of the victim, her husband kicked the victim in the head. The attack caused fractures to bones in the victim’s face and he was transported by ambulance to a local hospital. Witnesses to the incident recounted that Georgia Silva also insulted and attempt to spit upon another man of Indian descent.
"This case demonstrates that hate-motivated violence has no place in twenty-first century America, and such crimes will be vigorously prosecuted and punished," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "Americans of all races, colors, and ethnicities should feel free to use public parks and facilities without fear of intimidation and violence."
"Bias motivated violence has no place in our society. Vigorously enforcing federal hate crime laws is among the highest priorities of the U.S. Department of Justice," said Benjamin B. Wagner, U.S. Attorney for the Eastern District of California. "We will protect the rights of all persons in this richly diverse community to avail themselves of public facilities without fear of hate mongers and racists."
The case was investigated by FBI Special Agent Christopher Campion with the assistance of Special Agent Brad J. Bilderback. Officer Rhett Gann of the South Lake Tahoe Police Department also assisted in the investigation and testified at the trial.
The case was prosecuted by First Assistant U.S. Attorney Carolyn K. Delaney and Civil Rights Division Trial Attorneys C. Douglas Kern and Michael J. Frank.
Agreement Will Ensure the Start of Cleanup of Former Landfill Near South Lake Tahoe, CaliforniaRead the Press Release
WASHINGTON—A settlement with El Dorado County, Calif., will ensure the beginning of the cleanup, at an estimated cost of approximately $7 million, of the Meyers Landfill Site, located outside of the city of South Lake Tahoe, Calif., the Justice Department and U.S. Department of Agriculture, Forest Service announced today.
The agreement, lodged in U.S. District Court in Sacramento, resolves certain federal claims against El Dorado County for clean up of the Meyers Landfill site. In addition, the agreement resolves certain counter-claims made by the county against the United States for cleanup of the site.
Under the settlement, El Dorado County will be responsible for consolidating the waste mass at the site and placing it under an impervious cap. The cap and associated drainage features around the cap will prevent the infiltration of precipitation and snowmelt into the landfill waste mass thus eliminating or significantly reducing additional groundwater contamination. A landfill gas venting and monitoring system will also be installed.
The U.S. Forest Service is continuing to investigate groundwater contamination related to the site. Several years of study will be required after the landfill cap is constructed to determine the effect on the groundwater, and what remedy may be required to address any remaining groundwater contamination.
The Meyers Landfill site is a former municipal waste dump and is located wholly on National Forest System lands administered by the Lake Tahoe Basin Management Unit (LTBMU) of the U.S. Forest Service. The site is located in an unincorporated portion of El Dorado County approximately 4.5 miles south of Lake Tahoe. The site was operated as a landfill from about 1946 through 1971 under a series of Forest Service special use permits that were issued to private parties and since 1955 to El Dorado County.
Between 1991 and 1994, volatile organic compounds (VOCs), likely produced by degradation of organic material within the landfill waste mass, were detected in the groundwater beneath the former landfill disposal area. In August 1996, VOCs, including vinyl chloride, were detected down gradient of the site, including in Saxon Creek, a tributary of Lake Tahoe. The Forest Service initiated a response action under the Superfund law or the Comprehensive Environmental Response, Compensation, and Liability Act to determine the extent and impacts of the VOC contamination, and in 2001 it filed litigation against El Dorado County and the city of South Lake Tahoe.
"This settlement outlines specific steps that will be taken to ensure that the contamination at the Meyers Landfill site will be cleaned up and contained," said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division. "It is important that we ensure that longstanding hazardous waste sites are cleaned up and our natural resources are protected."
"We are excited for construction to begin on the ground; this project will provide for the long-term protection of public health and safety and water quality in the Lake Tahoe Basin," said Eli Ilano, deputy forest supervisor, Lake Tahoe Basin Management Unit.
The partial consent decree, lodged in the U.S. District Court for the Eastern District of California, in Sacramento, is subject to a 30 day public comment period and approval by the federal court. A copy of the partial consent decree is available on the Justice Department website at www.justice.gov/enrd/Consent_Decrees.html
Ten Alleged Secret Agents Arrested in the United StatesRead the Press Release
Eight individuals were arrested Sunday for allegedly carrying out long-term, "deep-cover" assignments in the United States on behalf of the Russian Federation, the Justice Department announced today. Two additional defendants were also arrested Sunday for allegedly participating in the same Russian intelligence program within the United States.
In total, 11 defendants, including the 10 arrested, are charged in two separate criminal complaints with conspiring to act as unlawful agents of the Russian Federation within the United States. Federal law prohibits individuals from acting as agents of foreign governments within the United States without prior notification to the U.S. Attorney General. Nine of the defendants are also charged with conspiracy to commit money laundering.
The defendants known as "Richard Murphy" and "Cynthia Murphy" were arrested yesterday by FBI agents at their residence in Montclair, N.J., and are expected to appear in federal court in Manhattan today. Vicky Pelaez and the defendant known as "Juan Lazaro" were arrested yesterday at their residence in Yonkers, N.Y., and are expected to appear in federal court in Manhattan today. Anna Chapman was arrested in Manhattan yesterday and is expected to appear in federal court in Manhattan today.
The defendants known as "Michael Zottoli" and "Patricia Mills" were arrested yesterday at their residence in Arlington, Va., and are appearing in federal court in Alexandria, Va., today. Defendant Mikhail Semenko was arrested yesterday at his residence in Arlington and is appearing in federal court in Alexandria today. In addition, the defendants known as "Donald Howard Heathfield" and "Tracey Lee Ann Foley" were arrested at their residence in Boston yesterday and are appearing in federal court in Boston today. The defendant known as "Christopher R. Metsos" remains at large.
The charges are filed in U.S. District Court for the Southern District of New York. The charge of conspiracy to act as an agent of a foreign government without notifying the U.S. Attorney General carries a maximum penalty of five years in prison. All the defendants are charged with this violation. The charge of conspiracy to commit money laundering carries a maximum penalty of 20 years in prison. All the defendants except Chapman and Semenko are charged with this violation.
This case is the result of a multi-year investigation conducted by the FBI; the U.S. Attorney’s Office for the Southern District of New York; and the Counterespionage Section and the Office of Intelligence within the Justice Department’s National Security Division.
The prosecution is being handled by Assistant U.S. Attorneys Michael Farbiarz, Glen Kopp and Jason Smith of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, and Trial Attorneys Kathleen Kedian and Richard Scott of the Counterespionage Section of the Justice Department’s National Security Division.
The charges and allegations contained in the criminal complaints are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Download the documents:
Complaint #1 (PDF)
Complaint #2 (PDF)Technip S.A. Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $240 Million Criminal PenaltyRead the Press Release
Technip S.A., a global engineering, construction and services company based in Paris, has agreed to pay a $240 million criminal penalty to resolve charges related to the Foreign Corrupt Practices Act (FCPA) for its participation in a decade-long scheme to bribe Nigerian government officials to obtain engineering, procurement and construction (EPC) contracts, the Department of Justice announced today. The EPC contracts to build liquefied natural gas (LNG) facilities on Bonny Island, Nigeria, were valued at more than $6 billion.
The department filed a deferred prosecution agreement and a criminal information against Technip in the U.S. District Court for the Southern District of Texas. The two-count information charges Technip with one count of conspiracy and one count of violating the FCPA. Technip’s American Depository Shares traded on the New York Stock Exchange from 2001 until 2007.
Technip, Kellogg Brown & Root Inc. (KBR), and two other companies were part of a four-company joint venture that was awarded four EPC contracts by Nigeria LNG Ltd. (NLNG) between 1995 and 2004 to build LNG facilities on Bonny Island. The government-owned Nigerian National Petroleum Corporation (NNPC) was the largest shareholder of NLNG, owning 49 percent of the company.
According to court documents, Technip authorized the joint venture to hire two agents, Jeffrey Tesler and a Japanese trading company, to pay bribes to a range of Nigerian government officials, including top-level executive branch officials, to assist Technip and the joint venture in obtaining the EPC contracts. At crucial junctures preceding the award of EPC contracts, a senior executive of Technip, KBR’s former CEO, Albert "Jack" Stanley, and others met with successive holders of a top-level office in the executive branch of the Nigerian government to ask the office holders to designate a representative with whom the joint venture should negotiate bribes to Nigerian government officials. The joint venture paid approximately $132 million to a Gibraltar corporation controlled by Tesler and more than $50 million to the Japanese trading company during the course of the bribery scheme. According to court documents, Technip intended for these payments to be used, in part, for bribes to Nigerian government officials.
Under the terms of the deferred prosecution agreement, the department agreed to defer prosecution of Technip for two years. Technip agreed, among other things, to retain an independent compliance monitor for a two-year period to review the design and implementation of Technip’s compliance program and to cooperate with the department in ongoing investigations. If Technip abides by the terms of the deferred prosecution agreement, the department will dismiss the criminal information when the term of the agreement expires.
In a related criminal case, Stanley pleaded guilty in September 2008 to conspiring to violate the FCPA for his participation in the bribery scheme. In another related criminal case, KBR’s successor company, Kellogg Brown & Root LLC, pleaded guilty in February 2009 to charges related to the FCPA for its participation in the scheme to bribe Nigerian government officials. Kellogg Brown & Root LLC was ordered to pay a $402 million fine and to retain an independent compliance monitor for a three-year period to review the design and implementation of its compliance program. In another related criminal case, Tesler and Wojciech Chodan, a former salesperson and consultant of a United Kingdom subsidiary of KBR, were indicted in February 2009 on charges related to the FCPA for their alleged participation in the bribery scheme. The United States has requested these defendants’ extradition from the United Kingdom.
Today, Technip also reached a settlement of a related civil complaint filed by the Securities and Exchange Commission (SEC) charging Technip with violating the FCPA’s anti-bribery, books and records, and internal controls provisions. As part of that settlement, Technip agreed to pay $98 million in disgorgement of profits relating to those violations.
Including today’s resolutions, a total of $917 million in criminal and civil penalties have been obtained to date as a result of the ongoing Department of Justice and SEC investigations of the scheme to bribe Nigerian government officials in order to win the Bonny Island EPC contracts.
"The resolutions announced today demonstrate once again the department’s commitment to aggressively investigate and prosecute international bribery by U.S. and foreign corporations alike," said Principal Deputy Assistant Attorney General Mythili Raman of the Criminal Division. "Together with KBR and others, the French company Technip engaged in a sophisticated, decade-long scheme to bribe a wide array of Nigerian government officials in order to win and retain billions of dollars in contracts. The fact that Technip now must pay criminal penalties and civil disgorgement totaling $338 million should make clear that, in the end, bribery of foreign officials will have consequences."
"Today’s criminal penalty is an example of how companies that intentionally bribe foreign government officials for their own gain will be prosecuted. The FBI is committed to pursuing those who disrupt the level playing field to which companies in the U.S. and around the world are entitled," said FBI Assistant Director Kevin L. Perkins. "This case demonstrates the FBI’s commitment to aggressively investigate violations of this law. We will continue to investigate FCPA matters by working in partnership with other law enforcement agencies, both foreign and domestic, to ensure that both corporations and executives who bribe foreign officials in return for lucrative business contracts are punished."
The criminal case is being prosecuted by Acting Assistant Chief William J. Stuckwisch and Deputy Chief Patrick F. Stokes of the Criminal Division’s Fraud Section, with investigative assistance from the FBI-Houston Division. The Criminal Division’s Office of International Affairs provided substantial assistance in gathering evidence abroad and facilitating international cooperation. Significant assistance was provided by the SEC’s Division of Enforcement and by the authorities in France, Italy, Switzerland and the United Kingdom.
Justice Department and Town of Gretna, Virginia, <br /> Reach Agreement to Ensure Nondiscriminatory Zoning PracticesRead the Press Release
WASHINGTON – The Justice Department today announced a comprehensive settlement agreement with the town of Gretna, Va., under the Americans with Disabilities Act (ADA) to eliminate barriers for providers of foster care services who wish to provide community placements in their homes for persons with disabilities. Under the agreement, the town has agreed to adopt and implement policies, practices and procedures to ensure nondiscriminatory zoning practices that might otherwise limit such community placements.
The settlement agreement resolves allegations that Gretna violated title II of the ADA when it denied a special use permit to a resident because she wanted to provide foster-care type services in her home to two adults with mental retardation. The arrangement was to be coordinated and overseen by a private non-profit agency that places individuals with cognitive and developmental disabilities in private homes in conjunction with federal Medicaid funds and state programs and funds designated for such purposes.
Under the terms of the settlement agreement, the town will implement a training program for town officials involved in zoning decisions regarding Gretna’s obligations under title II of the ADA. The town will report to the Justice Department on future land use decisions involving individuals with disabilities or persons providing services for such individuals. The town has also agreed to pay $60,000 in damages to the complainant.
"The integration of individuals with disabilities in all aspects of social and civic life, consistent with the mandate of the Supreme Court in the landmark Olmstead v. L.C. decision, is a priority of the Civil Rights Division," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Civil Rights Division will continue to vigorously pursue zoning discrimination to ensure that individuals with disabilities have a full and equal opportunity to participate in all facets of their communities."
The ADA protects individuals with disabilities from discrimination in all activities of state and local government entities, including zoning and land use decisions. Those interested in finding out more about federal disability rights statutes can call the Justice Department’s toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD), or access the ADA website at www.ada.gov.
Former Chicago Police Commander Convicted of Perjury, Obstruction of Justice Related to Torture of SuspectsRead the Press Release
WASHINGTON – The Justice Department announced that a federal jury in Chicago today convicted former Chicago Police Department (CPD) Commander Jon Burge, 60, of Apollo Beach, Fla., on perjury and obstruction charges related to his denials that he participated in the torture of suspects in police custody decades ago. The jury found that Burge lied and impeded court proceedings in November 2003 when he provided false statements in a civil lawsuit that alleged that he and others tortured and abused people in their custody.
During the trial, several victims testified that they had been tortured by Burge and other officers who worked for him in area two of the CPD. Various witnesses testified that the officers administered electric shocks to their genitals, suffocated them with typewriter covers, threatened them with loaded guns and burned them on radiators. The jury found that Burge had lied under oath when he claimed that he did not participate in any of these acts of torture, and that he was unaware of any other officers having done so.
"For decades, Jon Burge’s horrific actions ran contrary to all that our justice systemstands for. Burge betrayed the public trust, first by abusing suspects in his custody, and then by lying under oath to cover up what he and other officers had done. The jury’s verdict allows those harmed by his actions to finally start the healing process, " said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Civil Rights Division will aggressively prosecute any officer who violates the Constitution."
"At long last, a measure of justice was delivered today when a jury returned a verdict of guilty against Jon Burge on obstruction of justice and perjury. The verdict necessarily found that torture and abuse occurred in police districts in the city of Chicago in the 1980s. It’s disgraceful that torture happened and sad that it took so long to bring Burge to justice, and the only thing that would have been worse is if this measure of justice never happened," said Patrick J. Fitzgerald, U.S. Attorney for the Northern District of Illinois.
Burge faces a maximum penalty of 20 years in prison on each count of obstruction of justice and five years in prison for perjury.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys David Weisman and April Perry and Civil Rights Division Trial Attorney Betsy Biffl.
Virginia Resident Sentenced to 37 Months in Prison for Bribing Foreign Government OfficialsRead the Press Release
John Webster Warwick, a Virginia Beach, Va., resident, was sentenced today in U.S. District Court in Richmond, Va., to 37 months in prison for his role in a conspiracy to pay bribes to former Panamanian government officials to secure maritime contracts, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; Assistant Director in Charge Shawn Henry of the FBI’s Washington Field Office, Special Agent in Charge Michael Morehart of the FBI’s Richmond Field Office and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement’s (ICE) Washington office.
U.S. District Court Judge Henry E. Hudson also sentenced Warwick to two years of supervised release following his prison term. In addition, Warwick forfeited $331,000 in proceeds of the crime.
On Feb. 10, 2010, Warwick, 64, pleaded guilty to a one-count indictment charging him with conspiring to make corrupt payments to foreign government officials for the purpose of securing business for Ports Engineering Consultants Corporation (PECC) in violation of the Foreign Corrupt Practices Act (FCPA). Under the FCPA, it is a crime to pay or offer to pay anything of value to a foreign government official in order to obtain or retain business.
According to court documents, Warwick, Charles Jumet and others conspired to pay money secretly to Panamanian government officials for awarding contracts to PECC to maintain lighthouses and buoys along Panama’s waterway. In December 1997, the Panamanian government awarded PECC a no-bid 20-year concession. Upon receipt of the concession, Warwick, Jumet and others authorized corrupt payments to be made to the Panamanian government officials. In total, Warwick, Jumet and others caused corrupt payments of more than $200,000 to be paid to the Panamanian government officials.
In a related case, Jumet pleaded guilty to a two-count criminal information charging him with conspiring to make corrupt payments to foreign government officials for the purpose of securing business for PECC and making a false statement. On April 19, 2010, Jumet was sentenced to 87 months in prison and ordered to pay a fine of $15,000.
This case was prosecuted by Trial Attorney Rina Tucker Harris of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael S. Dry of the Eastern District of Virginia. The case was investigated by the FBI’s Washington Field Office, the FBI’s Richmond Field Office, and the Department of Homeland Security’s Immigration and Customs Enforcement.
Two Afghan Companies Plead Guilty to Bribing U.S. Officials and Agree to Pay $4.4 Million in FinesRead the Press Release
WASHINGTON – Two Afghan trucking companies pleaded guilty today to paying multiple bribes to U.S. public officials in exchange for unfair advantages in procuring contract work at the Bagram Airfield 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. The companies have agreed to pay a combined total of $4.4 million in criminal fines.
Afghan International Trucking (AIT) and Afghan Trade Transportation (ATT) each pleaded guilty in the Eastern District of Virginia to one count of bribery. According to the companies’ plea agreements, AIT will pay $3.36 million in criminal fines and ATT will pay $1.04 million in criminal fines.
The U.S. Army operates the Bagram Airfield in support of military operations in Afghanistan. According to court documents, the U.S. Army’s Transportation Operations Support Office oversaw all trucking contracts on the base. The Army assigned both military officers and contract employees to the transportation office. These individuals were responsible for reviewing all transportation requests and transportation providers. According to court documents, nine Afghan trucking companies worked at Bagram and officials in the transportation office assigned trucking services to these companies based on their performance records. Among the nine trucking companies were AIT and ATT.
According to court documents, AIT made corrupt payments of more than $120,000 to military officials in Afghanistan, including James Paul Clifton, Ana Chavez and a third, unnamed individual. ATT made corrupt payments totaling more than $30,000 to Clifton.
According to the statement of facts, employees for AIT started offering money to officials in the transportation office beginning in 2004. At one point, AIT paid Chavez with a candy box stuffed with $70,000. According to court documents, in mid-2008, AIT was paying Clifton $20,000 a month for preferable treatment. In May 2008, ATT entered into a similar illegal agreement with Clifton by which ATT paid bribes of $15,000 a month in exchange for Clifton assigning ATT an additional day of trucking service a month.
Clifton pleaded guilty in August 2009 to one count of bribery for accepting bribes from AIT and ATT in exchange for providing them with preferential treatment. In October 2009, Chavez pleaded guilty to one count of bribery and one count of money laundering for her involvement in an identical scheme with AIT.
This case is being prosecuted by Trial Attorneys Liam Brennan, Emily Allen and Mark Pletcher of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Steve A. Linick, Deputy Chief of the Criminal Division’s Fraud Section, and Executive Director of the National Procurement Fraud Task Force. The investigation is being conducted by Defense Criminal Investigative Service, U.S. Army Criminal Investigation Command Division, the Special Inspector General for Afghanistan Reconstruction, members of the National Procurement Fraud Task Force and the International Contract Corruption Task Force (ICCTF).
Today’s charges are an example of the Department of Justice’s commitment to protect U.S. taxpayers from procurement fraud through the National Procurement Fraud Task Force. The National Procurement Fraud Initiative, announced in October 2006, is designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in 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, including those in Afghanistan, Iraq and Kuwait. This case is part of their ongoing efforts to investigate and prosecute warzone corruption.
Innospec Agent Pleads Guilty to Bribing Iraqi Officials and Paying Kickbacks Under the Oil for Food ProgramRead the Press Release
Canadian/Lebanese dual national Ousama M. Naaman pleaded guilty today to participating in an eight-year conspiracy to defraud the United Nations Oil for Food Program (OFFP) and to bribe Iraqi government officials in connection with the sale of a chemical additive used in the refining of leaded fuel, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.
Naaman, 61, of Abu Dhabi, United Arab Emirates, was originally indicted on Aug. 7, 2008, in U.S. District Court for the District of Columbia. Naaman was arrested on July 30, 2009, in Frankfurt, Germany, and extradited to the United States. He pleaded guilty today to a two-count superseding information filed June 24, 2010, charging him with one count of conspiracy to commit wire fraud, violate the Foreign Corrupt Practices Act (FCPA), and falsify the books and records of a U.S. issuer; and one count of violating the FCPA.
Naaman and his companies were the Iraqi agents of Innospec Inc., a U.S. company. On March 18, 2010, Innospec pleaded guilty to a 12-count indictment charging wire fraud in connection with its payment of kickbacks to the Iraqi government under the OFFP, as well as violations of the FCPA in connection with bribe payments it made to officials in the Iraqi Ministry of Oil.
From 2001 to 2003, acting on behalf of Innospec, Naaman offered and paid 10 percent kickbacks to the then Iraqi government in exchange for five contracts under the OFFP. Naaman negotiated the contracts, including a 10 percent increase in the price to cover the kickback, and routed the funds to Iraqi government accounts in the Middle East. Innospec inflated its prices in contracts approved by the OFFP to cover the cost of the kickbacks.
Naaman also admitted that from 2004 to 2008, he paid and promised to pay more than $3 million in bribes, in the form of cash, as well as travel, gifts and entertainment, to officials of the Iraqi Ministry of Oil and the Trade Bank of Iraq to secure sales of tetraethyl lead in Iraq, as well as to secure more favorable exchange rates on the contracts. Naaman provided Innospec with false invoices to support the payments, and those invoices were incorporated into the books and records of Innospec.
Naaman faces a maximum prison sentence of 10 years. His sentencing has not yet been scheduled.
The case is being prosecuted by Trial Attorney Kathleen M. Hamann and Assistant Chief Nathaniel B. Edmonds of the Criminal Division’s Fraud Section. The case is being investigated by the FBI’s Washington Field Office’s dedicated FCPA squad and the U.S. Immigration and Customs Enforcement’s Counter Proliferation Investigations Unit. Significant assistance was provided by the Criminal Division’s Office of International Affairs and the U.S. Securities and Exchange Commission’s FCPA Unit.
The Innospec matter has been investigated in close cooperation with the Securities and Exchange Commission, the Department of the Treasury’s Office of Foreign Assets Control, and the United Kingdom’s Serious Fraud Office.
Department of Justice and USDA Hold Workshop Focused on Competition Issues in the Dairy IndustryRead the Press Release
The Department of Justice and the U.S. Department of Agriculture (USDA) today held a joint public workshop in Madison, Wis., to explore the appropriate role for antitrust and regulatory enforcement in the dairy industry. The workshop, led by Agriculture Secretary Tom Vilsack and Assistant Attorney General for the Justice Department’s Antitrust Division Christine Varney, examined competition in the dairy industry and featured panel discussions on trends in the dairy industry, market consolidation and market transparency. The workshop included significant opportunity for producers and the public to comment on trends in the dairy sector.
This is the third in a series of five workshops intended to promote dialogue among interested parties and foster learning with a diverse group of stakeholders regarding competition and regulatory issues in the agricultural marketplace. These workshops are the first-ever to be held by the Department of Justice and the USDA to discuss competition and regulatory issues in the agriculture industry. Additional information about the workshops can be found at www.justice.gov/atr/public/workshops/ag2010/index.htm#overview.
"American agriculture provides the livelihood for an enormous portion of the workforce and sustenance for the rest," said Varney. "Today’s discussion on the important issues facing the dairy industry has been immeasurably helpful as we consider the ways in which government can help to ensure efficiency and competition in the dairy industry."
"The dairy industry has been hit particularly hard over the past eighteen months, and, like other agricultural sectors, is experiencing consolidation and shrinking farm numbers," said Vilsack. "A fair and competitive marketplace is important not only for producers, but also for consumers, and today’s open and transparent dialogue with producers and experts will provide us with a understanding of the complex issues in this important industry and help us determine how we ensure competition and fairness in the dairy industry."
Secretary Vilsack and Assistant Attorney General Varney began the workshop with opening remarks before leading a roundtable discussion on competition issues in agriculture and the dairy industry, followed by a panel of dairy farmers from across the country to share their first-hand experiences and perspectives on the industry. In the afternoon, a panel of academics and farmers will discuss trends in the industry. Later, a second panel of professionals will explore issues associated with consolidation. Lastly, a third panel of professionals will examine farm prices for milk, contracts and related issues from a public policy perspective. The second hour-long public testimony will take place before the end of the workshop.
The workshop was held in Madison, Wis., at the Wisconsin Union Theater at the University of Wisconsin - Madison, and was attended by several key federal and state leaders, including Sen. Herb Kohl, Sen. Russell Feingold, Rep. Tammy Baldwin, Governor Jim Doyle and Wisconsin state Agriculture Secretary Rod Nilsestuen.
Videos and transcripts from today’s workshop will be available for review at a later date on the Antitrust Division’s website at www.justice.gov/atr/public/workshops/ag2010/index.htm#dates. Individuals seeking more information on the workshops should contact [email protected].
Twenty-six Alleged Bloods Gang Members and Associates Indicted on Federal Racketeering, Firearms and Narcotics ChargesRead the Press Release
A federal grand jury in Nashville, Tenn., has indicted 26 members and associates of the violent gang known as the Bloods, for various charges, including conspiracy to participate in a racketeering enterprise, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, assault resulting in serious bodily injury in aid of racketeering, conspiracy to use and carry firearms during and in relation to crimes of violence, and conspiracy to distribute and possess with intent to distribute crack cocaine, cocaine, hydromorphone and marijuana. The indictment was announced today by Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney for the Middle District of Tennessee Jerry E. Martin and Deputy Director Kenneth Melson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The indictment was returned under seal last week and unsealed Wednesday upon the arrests of the defendants.
“The Department of Justice is committed to protecting our nation’s communities from the violent and dangerous crimes alleged in this indictment,” said Assistant Attorney General Breuer. “We will continue to use all resources and tools at our disposal to disrupt and dismantle gangs wherever they exist and we will be aggressive in bringing to justice the members of these violent organizations.”
“We believe the individuals named in the indictment have been responsible for multiple attempted murder conspiracies and numerous violent crimes in the Nashville area,” stated U.S. Attorney Martin. “We have also alleged that many of these individuals were involved in substantial narcotics distribution. These arrests are merely the next logical step in the on-going investigation. I am confident that as we continue to unpackage and piece together the illegal activity of these individuals, our community will be a safer place as we prepare to present our cases against these individuals and insure they are removed from our community for a long period of time.”
“The message today is clear for violent criminals: you have nowhere to hide,” said ATF Deputy Director Kenneth Melson. “The gang members arrested during this operation have allegedly victimized families in the Nashville area for too long. This round up will give grandparents, parents and their children piece of mind and a safer place to call home, as we send a message to criminals that ATF will not tolerate acts of violence in our communities.”
“This indictment is the result of the hard work of our law enforcement community, particularly members of our Gang Unit who discovered that several seized firearms were involved in a number of shootings that were ultimately linked to the Bloods gang,” Nashville Police Chief Steve Anderson said. “The indictment accuses these individuals of very violent crimes that are most deserving of the full attention of our police department, the ATF, the U.S. Attorney’s Office and the District Attorney’s office.”
Multiple local, state and federal law enforcement agents, executed arrest and search warrants yesterday morning in connection with the indictment. Twenty-one defendants have been arrested and 15 made their initial appearance yesterday before U.S. Magistrate Judge E. Clifton Knowles.
According to the indictment, the defendants were members and associates of the Bloods, a violent street gang that originated in Los Angeles in the 1970s, and ultimately migrated to cities throughout the United States, including Nashville. The Bloods gang has a hierarchal structure and a long-term and often lethal rivalry with the Crips gang.
The indictment charges that from in and around 2006 until June 2010, Bloods gang members conspired to commit crimes including attempted murders and murders, robberies, narcotics trafficking, bribery and extortion. The indictment alleges that the Bloods gang members met regularly to plan and agree upon the commission of crimes; maintained and circulated a collection of firearms for use in criminal activity by Bloods members; distributed controlled substances including cocaine, cocaine base, marijuana and hydromorphone and used the proceeds to of those drug transactions to help finance the gang’s illegal activities. The indictment also alleges that Bloods gang members committed acts of attempted murder and murder and other acts of violence against rival gang members and others.
For example, the indictment alleges that on March 30, 2010, Bloods gang members attempted to murder Kenny Ellis, a rival gang member. Specifically, Lonnie Newsome, who was in a vehicle with other Bloods gang members, allegedly told Alonzo McLaurine, who was in a vehicle with Aaron Gooch to shoot Ellis. Shortly thereafter, Bloods gang member Aaron Gooch exited the vehicle and shot Kenny Ellis with a firearm.
Gang members also allegedly committed numerous other shootings. The indictment also alleges that Lonnie Newsome, Jermaine Coward, Alexander McDonald, Torey Cohen Boseman, Jeffrey Albea and Anthony Brooks conspired to murder any and all suspected Crips gang members in and around Nashville.
The indictment also alleges that, Lonnie Newsome’s father, Lonnie Greenlee, co-founder of the Galaxy Star Drug Awareness and Gang Prevention Center located in Nashville, allowed Bloods gang members to use the facility to conduct gang meetings. In addition, Lonnie Greenlee and a Galaxy Star employee Rodney Britton provided numerous Bloods gang members with fraudulent documentation of court-ordered community service hours in exchange for money.
The indictment charges the following defendants with conspiracy to participate in the racketeering activities of the Bloods:
· Lonnie Newsome, aka “Big Lonnie,” age 24;
· Ricky Williams, aka “Big Rick,” age 24;
· William Bartlett, aka “FaceMob,” age 27;
· Tim Allen, aka “Lil Tim,” age 20;
· Anthony Brooks, aka “A.B.,” age 23;
· Anthony Lampkins, aka “Doo Daddy,” age 21;
· Antonio Washington, aka “T.O.,” age 21;
· Kerry Pettus, aka “Lil Kerry,” age 21;
· Joedon Bradley, aka “Jo Jo,” age 22;
· Deshaune Jones, aka “Mexico,” age 21;
· Donald Dowell, aka “D-Dow,” age 23;
· Alonzo McLaurine, aka “Zo,” age 20;
· Aaron Gooch, aka “A-Ron,” age 21;
· Jermaine Tate, aka “Maine Maine,” age 21;
· Shayne Gibson, aka “Alief,” age 18;
· Alexander McDonald, aka “Dominique,” age 20;
· Jermaine Coward, aka “Maine Maine,” age 19;
· Jeffrey Albea, aka “Lil Jeff,” age 18;
· Torey Cohen Boseman, aka “Torey,” age 24;
· Karlos Taylor, aka “Los,” age 19;
· Anthony Campbell, aka “Dante,” age 20;
· James House, aka “Bam,” age 37;
· Rodney Britton, age 22; and
· Lonnie Greenlee, age 51.
Additionally, the indictment charges Brandon Prince, age 21, and Shawn Howell, age 23, with misprision of a felony, for their failure to notify law enforcement officials of the March 30, 2010, attempted murder of a rival gang member.
The case was investigated by the ATF; the Metropolitan Nashville Police Department; the Gallatin Police Department; and assisted by the U.S. Marshals Service and the Davidson County District Attorney’s Office.
The case is being prosecuted by Special Assistant U.S. Attorney Kelly D. Young and Trial Attorney Cody L. Skipper of the Criminal Division’s Gang Unit.
An indictment is merely an accusation and is not evidence of guilt. All defendants have the right to a trial at which the government would have to bear the burden of proof beyond a reasonable doubt.
Tracy Hope Davis Appointed Acting U.S. Trustee for New York, Connecticut, VermontRead the Press Release
WASHINGTON – Tracy Hope Davis has been appointed by Attorney General Eric Holder as Acting U.S. Trustee for New York, Connecticut and Vermont (Region 2) effective July1, 2010, the Executive Office for U.S. Trustees announced today. Ms. Davis replaces Diana G. Adams, who is retiring after 17 years of service with the U.S. Trustee Program (USTP), the past three as the U.S. Trustee for Region 2.
Ms. Davis, an Assistant U.S. Trustee in New York City, joined the USTP in 1997 as a trial attorney. She has also served as the Acting Assistant U.S. Trustee in Brooklyn. Before joining the USTP, she practiced law in New York City, specializing in bankruptcy. After law school, she served as law clerk to the Honorable Cornelius Blackshear, U.S. Bankruptcy Court, Southern District of New York (retired). Ms. Davis received her law degree from Rutgers Law School in Newark, N.J., and her Bachelor of Arts degree from Wells College in Aurora, N.Y.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 95 field offices. Region 2 is headquartered in New York City with additional offices in Albany, Brooklyn, Buffalo, Central Islip, Rochester and Utica, N.Y., and New Haven, Conn.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Three Individuals with Alleged Ties to Aryan Brotherhood Charged with a 2008 Murder That Occurred in Atascosa County, TexasRead the Press Release
Three alleged members or associates of the Aryan Brotherhood of Texas (ABT) have been indicted for their alleged roles in a 2008 murder in Atascosa County, Texas, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney John E. Murphy of the Western District of Texas.
The indictment, returned by the federal grand jury today in San Antonio, charges the three defendants with violent crimes in aid of racketeering activity. Frank Lavelle Urbish Jr., aka “Thumper,” 38, of Beaumont, Texas; Michael Dewayne Smith, aka “Bucky”, 29, of Houston; and Jim Flint McIntyre, aka, “Q-Ball”, 42, of Houston, are each charged with conspiracy to commit murder, murder and possessing a firearm after having been convicted of a felony. Smith and McIntyre are also charged with carrying a firearm during and in relation to a crime of violence and using and carrying a firearm to commit murder during and in relation to a crime of violence.
The indictment alleges that a prospect member of the Aryan Brotherhood, Mark Davis Byrd Sr., was murdered by McIntyre and Smith for allegedly stealing drugs he was ordered to deliver to a customer on behalf of the ABT. The indictment alleges that Byrd was murdered as a result of a “discipline” ordered by Urbish. Byrd’s body was discovered in Atascosa County on May 4, 2008.
Upon conviction, the defendants face a maximum sentence of life in federal prison or the death penalty. The defendants are currently in state custody. They are tentatively scheduled to have their initial appearance before a U.S. Magistrate Judge in San Antonio on July 7, 2010.
According to the indictment, the ABT is a race-based, state-wide organization that operates inside and outside of state and federal prisons throughout Texas and elsewhere in the United States. The ABT was established in the early 1980’s within the Texas prison system. As alleged in the indictment, it modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960’s. According to the indictment, previously the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT has expanded its focus more towards a criminal enterprise to include illegal activities for profit.
As alleged in the indictment, the ABT enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, are required to follow the orders of higher-ranking members, often referred to as “direct orders.”
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the National Gang Targeting, Enforcement & Coordination Center ( GangTECC); the National Gang Intelligence Center; the Texas Rangers; the Texas Department of Public Safety; the Atascosa County Sheriff's Department; and the Beaumont Police Department.
The case is being prosecuted by David Karpel of the Criminal Division’s Gang Unit and David Shearer of the U.S. Attorney’s Office for the Western District of Texas in San Antonio Office, in full cooperation with the Atascosa County District Attorney’s Office.
The indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Nantucket Man Arrested and Charged with Operating International Online “Phishing” Scheme to Steal Income Tax RefundsRead the Press Release
Mikalai Mardakhayeu, a Belarusian national residing in Nantucket, Mass., was arrested Wednesday night and charged for his alleged participation in an international online "phishing" scheme to steal income tax refunds intended for U.S. taxpayers around the country, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Carmen M. Ortiz for the District of Massachusetts.
An indictment unsealed today in U.S. District Court in Boston charges Mardakhayeu with one count of conspiracy and nine counts of wire fraud.
According to the indictment, from 2006 through 2007, Mardakhayeu and his co-conspirators lured victims by operating websites that offered lower-income taxpayers free online tax return preparation and electronic tax return filing (e-filing) services. As alleged in the indictment, the websites falsely claimed to be authorized by the Internal Revenue Service (IRS) to offer such services. After taxpayers input and uploaded their tax information seeking refunds for federal and state taxes, co-conspirators in Belarus allegedly collected the data and altered the returns so that legitimate tax refund payments would be redirected to U.S. bank accounts controlled by Mardakhayeu. According to the indictment, in some cases the claimed refund amount was higher than the amount originally claimed by the taxpayer. The co-conspirators allegedly caused the fraudulently altered returns to be e-filed with the IRS and state treasury departments. The conspiracy ultimately caused the U.S. Treasury and various state treasury departments to deposit approximately $200,000 in stolen refunds into bank accounts in and around Nantucket that were controlled by Mardakhayeu.
If convicted, Mardakhayeu faces a maximum sentence of 20 years in prison, to be followed by three years of supervised release, a $250,000 fine and restitution.
An indictment is merely an accusation, and the defendant is presumed innocent until and unless proven guilty at trial beyond a reasonable doubt.
The case was investigated by the IRS Criminal Division and the Treasury Inspector General for Tax Administration and is being prosecuted by Assistant U.S. Attorney Adam Bookbinder in the District of Massachusetts’ Computer Crimes Unit and by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section.
Mobile, Alabama, Man Indicted on Federal Civil Rights and Weapons Charges Related to Desecration of SynagogueRead the Press Release
WASHINGTON – The Justice Department today announced that a federal grand jury in Mobile, Ala., has returned a three-count indictment charging Thomas Hayward Lewis, 24, of Mobile, with violating and conspiring to violate the civil rights of congregants of the Congregation Tree of Life Messianic Synagogue in Mobile, as well as possession of an unregistered firearm.
The indictment alleges that on or about the night of Jan. 3, 2009, Lewis spray painted the Tree of Life Synagogue with anti-Semitic graffiti and neo-Nazi markings. The indictment further alleges that prior to the incident, Lewis and a co-conspirator, Christian Rodney Ice, conspired to deface and desecrate the synagogue. Lewis’s co-conspirator has already pleaded guilty in federal court in Mobile to one count of violating the Church Arson Act by placing threatening graffiti and neo-Nazi markings on the Congregation Tree of Life Messianic Synagogue.
"Religious freedom is a basic civil right, and threats against religious institutions and their members will not be tolerated in this country," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "This case should send a clear message to others who would carry out similar criminal acts that we will vigorously pursue all responsible parties and all will be held accountable for their actions."
"The United States Attorney’s Office is committed to the protection of our citizens’ civil rights. The United States Constitution’s guarantee of freedom of religion is one of our citizen’s most sacred civil rights," said U.S. Attorney Kenyen R. Brown for the Southern District of Alabama.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. If convicted, the defendant faces a maximum penalty of 10 years in prison on the civil rights charges.
This case was investigated by the FBI and the city of Mobile, Ala., Police Department, and is being prosecuted by Assistant U.S. Attorney George May of the U.S. Attorney’s Office for the Southern District of Alabama and Trial Attorney Donald Tunnage of the Civil Rights Division’s Criminal Section.
Judge Orders State of Florida to Provide Community Services to Jacksonville Woman at Risk of InstitutionalizationRead the Press Release
WASHINGTON - The state of Florida must provide Michele Haddad with services that will enable her to remain in her home, a U.S. District Court in Jacksonville, Fla., ruled Wednesday. Haddad, who has quadriplegia as a result of a motorcycle accident with a drunk driver in 2007, has successfully resided in the community since the accident, but is at risk of entry into a nursing home due to changes in her caregiver situation. Haddad, who has been on the waiting list for Medicaid community-based waiver services for two years, notified the state of her increased need for services, but was told that community services would only be available if she was willing to enter a nursing home for 60 days.
The court ordered the state to provide community-based services as required by the Americans with Disabilities Act's (ADA) integration mandate as set forth in Olmstead v. L.C. The United States argued in a brief filed on May 25, 2010, that Haddad would suffer irreparable harm if forced to enter a nursing home to receive necessary services.
The court issued this order in the week that marks the 11th anniversary of the landmark Olmstead decision.
“In the Olmstead case, the court recognized that the unnecessary segregation of individuals with disabilities stigmatizes those individuals as unworthy of participation in community life,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “By supporting Ms. Haddad in this case, we seek to ensure that individuals with disabilities can receive services in the most integrated setting appropriate, where they can participate in their communities, interact with individuals who do not have disabilities, and make their own day to day choices.”
The U.S. government’s participation in this case is part of the administration’s efforts across the nation to affirm the fundamental right for Americans with disabilities to live independently, in what the president has deemed “The Year of Community Living.”
The full and fair enforcement of the ADA and its mandate to integrate individuals with disabilities is a major priority of the Civil Rights Division. The ADA protects individuals with disabilities from discrimination by public entities. People interested in finding out more about the ADA can call the Justice Department’s toll-free ADA Information Line at 1-800-514-0301 or 1-800-514-0383 (TTY), or access its ADA website at www.ada.gov/.
Downsville, Louisiana, Man Pleads Guilty to Federal Hate CrimeRead the Press Release
WASHINGTON – The Justice Department today announced that Robert Jackson, 37, of Downsville, La., pleaded guilty in federal court to placing a hangman’s noose in the carport of the home of a family in order "to send a message" to African-American males who had been frequently visiting the victim’s home. Jackson entered a plea to violating the Fair Housing Act by intimidating and interfering with another’s housing rights because of race.
According to court testimony, the victim and her children arrived home on June 13, 2008, and found a hangman’s noose suspended from a bird-feeder underneath the carport of her home. A subsequent investigation determined that Jackson, a former employee at a local company located next door from the victim’s home, made the noose and placed it in the carport.
" A noose is an unmistakable symbol of hate in our nation, and it was used in this case to intimidate an innocent family, " said Thomas E. Perez, Assistant Attorney General of the Civil Rights Division. " The Department of Justice will vigorously prosecute those who resort to threats motivated by hate. "
"A hangman’s noose is a powerful symbol of racial intimidation and intolerance, and when used to interfere with federally protected rights, becomes a federal crime." said Stephanie A. Finley, U.S. Attorney for Western District of Louisiana. "The victim and her family sought nothing more than to live in their home in peace. Jackson’s racially-motivated response has left him facing a prison sentence."
Sentencing is scheduled for Sept. 28, 2010. Jackson faces a maximum penalty of 12 months in prison, a $100,000 fine, or both.
The case was investigated by the FBI, Monroe Resident Agency, and was prosecuted by Assistant U.S. Attorney Mary Mudrick and Trial Attorney Myesha Braden of the Civil Rights Division of the U.S. Department of Justice.
Woonsocket, Rhode Island, Police Officer Pleads Guilty to Civil Rights ViolationRead the Press Release
WASHINGTON – Former Woonsocket, R.I., Police Officer John H. Douglas pleaded guilty today in federal court in Providence, R.I., to a federal criminal civil rights charge for assaulting a juvenile who was in his custody, the Justice Department announced.
On Sept. 15, 2009, Douglas and two other Woonsocket Police Officers escorted a juvenile in police custody to a small hallway inside the Woonsocket Police Station. Once inside the hallway, Douglas, who was angry at the juvenile because he believed the juvenile had earlier injured a fellow Woonsocket Police Officer, repeatedly punched the juvenile. As a consequence of this beating, the juvenile suffered trauma and bone fractures in his facial area.
"Law enforcement officers who use their badges as an excuse to commit egregious acts of violence are an affront to the rule of law," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Justice Department will continue to aggressively prosecute officers who abuse their power in this manner."
U.S. Attorney Peter F. Neronha for the District of Rhode Island commented, "Police officers serve the people of Rhode Island with dedication and distinction every day, often putting their lives on the line to protect others. This case serves as a reminder, however, that no one is above the law, and when a police officer abuses his authority and violates the civil rights of a person he or she is supposed to protect, such conduct will not be tolerated."
Douglas faces a maximum sentence of 10 years in prison and a fine of $250,000. Sentencing has been scheduled for Nov. 10, 2010.
This case was investigated by Special Agent James Pitcavage of the FBI. The case is being jointly prosecuted by Assistant U.S. Attorneys Terrence Donnelly and John McAdams, and Trial Attorney Avner Shapiro of the Civil Rights Division.
Taiwanese Couple Sentenced to Prison for Illegally Trading Protected Black CoralRead the Press Release
WASHINGTON—Two Taiwanese nationals were sentenced to prison today in federal court in the U.S. Virgin Islands for conspiracy to ship internationally protected black coral into the United States in violation of federal wildlife statutes, the Department of Justice announced.
Ivan Chu of Taipei, Taiwan, was sentenced to serve 30 months in prison and pay a $12,500 fine. Gloria Chu also of Taipei was sentenced to serve 20 months in prison and pay a $12,500 fine. The court also prohibited the Chus from shipping any coral and other wildlife products to the United States for a three-year period following their release from prison. These sentences are the longest prison sentences for illegal trade in coral to date.
Both Chus pleaded guilty on March 11, 2010, to nine counts including conspiracy, false statements, and violations of both the Endangered Species Act and the Lacey Act.
The Lacey Act makes it a felony to falsely label wildlife that is intended for international commerce. The Endangered Species Act is the U.S. domestic law that implements the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Each of the species of black coral is listed in Appendix II of CITES and is subject to strict trade regulations.
Black coral is one of the several types of precious corals that can be polished to a high sheen, worked into artistic sculptures and used in inlaid jewelry. The Chus admitted to running a business named Peng Chia Enterprise Co. Ltd., that supplied materials including black coral to customers outside of Taiwan for jewelry design and manufacture. At times prior to 2007, the Chus were issued CITES export permits by the Taiwanese government in order to ship black coral overseas. Since 2007, however, they have been unable to obtain permits because they are unable to produce a legitimate certificate of origin.
Both Chus admitted that in order to supply a company based in the Virgin Islands with black coral, they would falsely label shipments in order to conceal the coral from U.S. Customs and Border Protection officers. The conspiracy included travel to a warehouse in mainland China to choose coral from a Chinese supplier and the use of an intermediary to ship the black coral from Hong Kong to a company in St. Thomas. The scheme took place for at least two years prior to the customs seizure of an August 2009 shipment destined for the company.
On Aug. 19, 2009, Peng Chia sent a shipment comprised of 10 boxes of black coral that were labeled "plastic of craft work." A U.S. Customs’ Contraband Enforcement Team flagged the shipment as suspicious and contacted U.S. Fish and Wildlife (USFWS) from San Juan, Puerto Rico. As a result, USFWS, National Oceanic and Atmospheric Administration and Immigration and Customs Enforcement opened a joint investigation, "Operation Black Gold," that led to the arrest of the Chus in January 2010. Analysis by the U.S. Fish and Wildlife Service’s National Forensics Laboratory in Ashland, Ore., revealed that shipment from the Chus contained internationally- protected black coral. The Chus have admitted that from 2007 to 2009, they sent more than $194,000 worth of black coral to the company in St. Thomas.
"Trafficking in protected species like black coral violates international and domestic laws and threatens the existence of that important resource. Today’s prison sentences indicate the severity of the crimes and should deter others from participating in illegal wildlife trafficking," said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.
"This case demonstrates that there will be consequences to those who illegally exploit our marine environment that such behavior will not be tolerated," said Ronald W. Sharpe, U.S. Attorney for the District of the U.S. Virgin Islands. "The United States Attorney’s Office will prosecute those who commit environmental crimes as vigorously as it prosecutes violent offenders."
"This should send a strong and clear message to those individuals foreign and domestic, who deliberately break our environmental laws, that their conduct will not be tolerated. Those who illegally plunder nature’s resources in favor of profits will be brought to justice," said James Gale, Special Agent in Charge of the Fish and Wildlife Services’s Southeast Region. "The cooperative efforts show the commitment of all agencies involved to protect coral and the natural resources against the illegal international trade, we are all stewards."
The case was investigated by agents of the USFWS and the National Oceanic and Atmospheric Administration. The case is being prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the District of the Virgin Islands.
Seven Houston-area Residents Charged in $5 Million Health Care Fraud SchemeRead the Press Release
Seven Houston-area residents who worked for a home health agency have been charged for their alleged participation in a $5 million Medicare fraud scheme, the Departments of Justice and Health and Human Services (HHS) announced. The defendants made their initial appearance today in U.S. District Court in Houston before Magistrate Judge John R. Froeschner.
An indictment filed June 21, 2010, in U.S. District Court in Houston charges Clifford Ubani, 52; Ezinne Ubani, 45; Princewill Njoku, 51; Caroline Njoku, 45; Mary Ellis, 54; Michelle Turner, 42; and Cynthia Garza-Williams, 49, with conspiracy to commit health care fraud. Clifford Ubani, Princewill Njoku, Caroline Njoku, Ellis, Turner and Garza-Williams are also charged with paying and/or receiving kickbacks. Ezinne Ubani, Princewill Njoku and Ellis are charged with making false statements in the submission of claims to the Medicare program.
According to the indictment, Clifford Ubani, Ezinne Ubani, Princewill Njoku and Caroline Njoku were the owners and operators of Family Healthcare Services. The indictment alleges that these owners and operators submitted false and fraudulent claims to the Medicare program for purportedly providing home health care services that were not medically necessary and/or not rendered. According to the indictment, the Medicare program paid Family Healthcare Services approximately $5 million for the false and fraudulent claims.
According to the indictment, Caroline Njoku, Ellis, Turner and Garza-Williams recruited Medicare beneficiaries to be placed at Family Healthcare Services for skilled nursing services, and in return were paid kickbacks by Ezinne Ubani and Princewill Njoku for the referrals. Ezinne Ubani, Princewill Njoku, Ellis and Garza-Williams falsified patient files to make it appear that Medicare beneficiaries qualified for and received home health care services that were not medically necessary and/or not provided.
The maximum sentence for conspiracy to commit health care fraud is 10 years in prison. The maximum sentence for each count of paying and/or receiving kickbacks, and making false statements in determining rights for benefit and payment by Medicare is five years in prison. The indictment seeks forfeiture of assets held by the defendants.
An indictment is merely a charge and the defendants are presumed innocent until proven guilty.
Today’s charges were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; 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 the Inspector General (HHS-OIG), Office of Investigations; and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU).
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 investigated by the FBI, HHS-OIG and MFCU, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas.
Since their inception in March 2007, Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 585 individuals who collectively have falsely billed the Medicare program for more than $1.3 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 .
North Carolina Man Sentenced to 72 Months in Prison for Possessing Child PornographyRead the Press Release
Timothy Christenbury, 47, was sentenced today in Charlotte, N.C., to 72 months in prison and 10 years of supervised release following his prison term for possessing child pornography, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney for the Western District of North Carolina Edward R. Ryan.
Christenbury, of Charlotte, was sentenced by U.S. District Judge Frank D. Whitney after pleading guilty on Feb. 18, 2009, before U.S. Magistrate Judge Carl Horn III to one count of possession of child pornography.
Christenbury was identified through "Operation Joint Hammer," the U.S. component of an ongoing global enforcement operation targeting transnational rings of child pornographers. The operation has led to the arrest of more than 60 people in the United States involved in the trade of child pornography. Operation Joint Hammer was initiated through evidence developed by European law enforcement and shared with U.S. counterparts by Europol and Interpol. The European portion of this global enforcement effort, "Operation Koala," was launched after the discovery of the activities of several people in Europe who were abusing children and producing photographs of the abuse for commercial gain. Further investigation unveiled a number of online child pornography rings.
The case was prosecuted by Assistant U.S. Attorneys Cortney Escaravage and Kimlani Ford of the Western District of North Carolina and Trial Attorney Alecia Riewerts Wolak of the Criminal Division’s Child Exploitation and Obscenity Section. The investigation was handled by U.S. Immigration and Customs Enforcement.