District Not Recorded

Child Sexual Assault Material

William Dean Decker, 65, of Gillette, Wyoming, was sentenced to 35 years in federal prison for production of child pornography and possession of child pornography. According to court documents, on and before Dec. 15, 2023, the Wyoming Division of Investigation (DCI) Internet Crimes Against Children (ICAC) task force received six Cybertips from the National Center for Missing and Exploited Children. Investigators learned that a minor child, known to Decker, was involved in the production and they moved quickly to stop the abuse. A search warrant uncovered hundreds of images and video files of Decker sexually abusing the child in his residence. Decker pleaded guilty on Mar. 8 and Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on May 31. This crime was investigated by DCI’s ICAC task force and the case was prosecuted by Assistant U.S. Attorney Z. Seth Griswold.

Firearm Offenses

Taylor Jay Whiting, 33, of Lusk, Wyoming, was sentenced to 46 months in federal prison for being a felon in possession of a firearm. According to court documents, on Oct. 22, 2023, Lusk Police Department located Whiting, who had a warrant for his arrest, walking down the street and instructed him to put his hands up and turn around. As officers approached him, Whiting told them he had a gun in his hoodie pocket. Officers located a Ruger .380 handgun in Whiting’s sweatshirt. Whiting is a previously convicted felon and not allowed to possess a firearm. He pleaded guilty to the charge on Mar. 8, and Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on May 31. This crime was investigated by the Lusk Police Department and the FBI. The case was prosecuted by Assistant U.S. Attorney Paige Hammer.

Drug Trafficking

Amanda Lynn Piercy, 37, of Cheyenne, Wyoming, was sentenced to 40 months and 21 days in federal prison for conspiracy to distribute fentanyl. According to court documents, on Sep. 8, 2023, Cheyenne Police Department officers were dispatched to a Cheyenne residence because of an unconscious person. Officers learned Piercy had overdosed on fentanyl in the basement of the residence. When she was revived, officers removed 7 fentanyl pills from her pants pocket. During a search of the property, officers found additional drugs and a handgun. Piercy pleaded guilty to the charges on Feb. 20 and Senior U.S. District Court Judge Nancy D. Freudenthal imposed the sentence on May 22. The crime was investigated by the Cheyenne Police Department and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney T.J. Forwood.

Sandra Munoz, 40, of Cheyenne, Wyoming, was sentenced to 42 months’ imprisonment for conspiracy to possess with intent to distribute fentanyl and methamphetamine. According to court documents, on Oct. 8, 2023, a Cheyenne Police Department officer attempted to stop Munoz for speeding and having a cracked windshield. She fled, but after a short pursuit, she crashed, and the officer detained her and three other passengers. During a search of the vehicle, the officer found approximately 2,000 fentanyl pills and 173 grams of methamphetamine. Piercy pleaded guilty to the charges on Feb. 20 and Senior U.S. District Judge Nancy D. Freudenthal imposed the sentence on May 22. The crime was investigated by the Cheyenne Police Department and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney T.J. Forwood.

Illegal Re-entry of a Previously Deported Alien

Carlos Marcelo Lopez-Hernandez, 34, of Guatemala, was sentenced to time served for illegal re-entry into the United States of a previously deported alien. According to court documents, a Wyoming Highway Patrol trooper arrested Lopez-Hernandez on Jan. 31 for driving with no license and no identification. During the booking process, Lopez-Hernandez’s fingerprints were matched with a profile in the U.S. Immigration and Customs Enforcement’s (ICE) database. ICE verified that Lopez-Hernandez had previously been deported and was in the United States illegally. This case was investigated by ICE and prosecuted by Assistant U.S. Attorney Cameron J. Cook. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on May 24.

Gonzalo Parra-Munoz, 31, of Chihuahua, Mexico, was sentenced to 6 months’ imprisonment for illegal re-entry into the United States of a previously deported alien. According to court documents, On Jan. 27, Parra-Munoz was arrested by the Converse County Sheriff’s Department (CCSD) for possession of stolen property/motor vehicle, unlawful acts, and driving under the influence. U.S. Immigration and Customs Enforcement (ICE) verified that Parra-Lopez had previously been deported and was in the United States illegally. This crime was investigated by CCSD and ICE. The case was  prosecuted by Assistant U.S. Attorney Cameron J. Cook. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on May 31.

Director Rachel Rossi of the Justice Department’s Office for Access to Justice (ATJ) traveled to Connecticut this week as part of the office’s mission to ensure access to justice across the civil justice system, to expand access to counsel and to support innovative efforts to improve the judiciary and court administration. As part of the visit, Director Rossi met with U.S. Attorney Vanessa Avery for the District of Connecticut to applaud her leadership on access to justice issues in the state and to discuss future collaboration.

Director Rossi and ATJ staff also convened members of the Connecticut Bar Foundation (CBF), Connecticut Bar Association, Connecticut Access to Justice Commission and Connecticut Judiciary. During the meeting, Director Rossi highlighted recent initiatives, including quarterly convenings of the over 40 access to justice commissions across the country; the Federal Pro Bono Program; updates on the work of the Legal Aid Interagency Roundtable; and recent efforts to support the reduced reliance on fines and fees. Attendees discussed civil justice barriers, resource needs and innovative access to justice projects.

In the afternoon, Director Rossi participated in a site visit to the Connecticut Veterans Legal Center (CVLC), where she toured the Newington Veterans Administration (VA) Medical Center and observed the CVLC’s medical-legal partnership model. She also met with CVLC leadership and medical and legal staff, to learn about the legal services program and implementation of the model in other VA Medical Centers across the country. Director Rossi reiterated ATJ’s commitment and highlighted efforts to expand Access to Justice for Veterans, service members and their families and ATJ’s recent launch of the first-ever medical-legal partnership within a federal prison, in partnership with the Federal Bureau of Prisons.

Director Rossi also met with Reginald Dwayne Betts, Founder and Chief Executive Officer of Freedom Reads, a non-profit organization that uses literature, design and architecture to create transformative experiences for incarcerated individuals and to address reentry and rehabilitative needs. Director Rossi discussed various ATJ initiatives aimed at addressing barriers to reentry faced by formerly incarcerated individuals and efforts to improve access to counsel for those in custody.

At the conclusion of the trip, Director Rossi delivered keynote remarks for CBF’s Annual Reception, which annually celebrates CBF’s work to fund and support programs that provide legal services for Connecticut residents who cannot afford an attorney. The reception honors CBF’s James W. Cooper Fellows and the innovative projects that forward the mission of advancing civil justice for all regardless of power or resources. In her remarks, Director Rossi emphasized the office’s mission of “engaging in the bold, transformative and systemic work necessary to ensure that all communities have access to the promises and protections of our criminal and civil legal systems.” She encouraged the fellows’ work of driving policy change and expanding program efforts for pro bono support as well as legal services. The CBF is a non-profit organization with a mission to facilitate systemic change that advances civil justice for all, regardless of power or resources, to achieve a more just and equitable society. 

A Texas pharmacy owner was sentenced today to four years and four months in prison and ordered to pay over $59 million in restitution for paying illegal kickbacks and engaging in a money laundering conspiracy.

According to court documents and evidence presented at trial, Richard Hall, 53, of Fort Worth, worked with others to create and market expensive compounded medications, which are intended to be custom-tailored to individual patient needs. Hall paid marketers to recruit area doctors to write prescriptions for these expensive compounded medications, including by creating so-called “investment opportunities” so that doctors who wrote prescriptions to the pharmacy could profit from the pharmacy operations. Hall paid illegal kickbacks to these marketers and engaged in a conspiracy to launder the unlawful proceeds.  

A federal jury in the Northern District of Texas convicted Hall in July 2023 of four counts of paying and receiving unlawful kickbacks and one count of conspiring to launder money.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service (DCIS); Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office; Special Agent in Charge Chad B. Yarbrough of the FBI Dallas Regional Office; Special Agent in Charge Casey Howard of the Department of Labor Office of Inspector General (DOL-OIG) Central Regional Office; and Special Agent in Charge Kris Raper of the Department of Veterans Affairs Office of Inspector General (VA-OIG) South Central Field Office made the announcement.

The DCIS, HHS-OIG, FBI, DOL-OIG, and VA-OIG investigated the case.

Assistant Chiefs Kate Payerle and Brynn Schiess and Trial Attorneys Lee Michael Hirsch and Jacqueline DerOvanesian of the Criminal Division’s Fraud Section prosecuted the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

Ahead of the third anniversary of the establishment of Joint Task Force Alpha (JTFA), the Justice Department today announced additional efforts to dismantle human smuggling operations and increase accountability for those who violate our immigration laws. Launched in June 2021 by Attorney General Merrick B. Garland and Secretary of Homeland Security Alejandro N. Mayorkas, JTFA represents a partnership between the Justice Department and the Department of Homeland Security (DHS) with a mandate to disrupt and dismantle human smuggling and trafficking organizations operating in and through Guatemala, Honduras, El Salvador, and Mexico. To build on the success of JTFA, including an increase of more than 25% in defendants charged with alien smuggling since 2020, the Justice Department is realigning resources, providing financial incentives, and proposing increased penalties for human smuggling offenses.   

The Justice Department also is coordinating with border U.S. Attorneys and their districts, as well as with the Department of Homeland Security (DHS) and other law enforcement agencies, to evaluate current needs and resource allocations, and to identify available and potentially new opportunities to address immigration issues.

Prioritizing Prosecutions Involving Smugglers

The Justice Department will continue to prioritize the prosecution of cases involving human smuggling, working through JTFA — which is led by the Criminal Division’s Human Rights and Special Prosecutions Section — and the efforts of individual U.S. Attorneys’ Offices and their law enforcement partners. 

Felony prosecutions for smuggling have been on an upward trajectory, increasing by 27% since 2020. These cases are significant. -They include human smuggling of both vulnerable populations and individuals who pose security concerns, as well as unlawful transportation of assets and contraband, high-speed flight from law enforcement and possession of firearms by smuggling defendants. Focusing on felony smuggling prosecutions creates a deterrent effect, not only impacting the defendant but creating a ripple effect that discourages future smuggling. Additional smuggling prosecutions will target known routes utilized and controlled by cartels and other organized criminal groups.

JTFA will continue to focus on the highest-level human smugglers — the worst of the worst. Since its creation in June 2021, JTFA has achieved significant tangible results, including:

• Over 300 arrests, including of leaders, organizers, and significant facilitators;
• Over 240 U.S. convictions;
• Over 170 U.S. defendants sentenced, with significant sentences of 30 years or more in prison; 
• Substantial seizures and forfeiture of assets and contraband including millions of dollars in cash, real property, vehicles, firearms and ammunition, and drugs; and 
• Multiple indictments and successful extradition requests against foreign leadership targets located in Guatemala, Mexico, and Honduras.

Just this week, the leader of a migrant smuggling organization was sentenced to 10 years in prison for her role in smuggling over 100 migrants from Honduras to the United States for profit. 

Using Financial Rewards to Dismantle the Leadership of Transnational Human Smuggling Networks

The Justice Department and Department of State are launching an Anti-Smuggling Rewards (ASR) Initiative designed to dismantle the leadership of human smuggling organizations that bring migrants through Central America and across the southern U.S. border. The ASR Initiative will use existing statutory authority — through the State Department’s Transnational Organized Crime Rewards Program — to offer financial rewards for information leading to the identification, location, arrest, or conviction of those most responsible for significant human smuggling activities in the region.

The ASR Initiative will target categories of high-priority human smuggling targets, such as:

• Leaders of certain identified cartels and other transnational organizations responsible for human smuggling through the Western Hemisphere and across the southern U.S. border;
• Leaders and organizers of human smuggling networks responsible for certain identified mass casualty events; and
• Certain identified high-priority international fugitives wanted for human smuggling offenses.

In addition, the Justice Department will offer the possibility of additional rewards to tipsters whose information results in the forfeiture of criminal proceeds of human smuggling activities. The Department of the Treasury, in coordination with the ASR Initiative, will continue to employ its authorities to disrupt high priority human smuggling operations.

Increasing Penalties for the Most Prolific and Dangerous Human Smugglers

Since at least 2016, the Justice Department and DHS have urged the U.S. Sentencing Commission to consider stiffening penalties for those who commit human smuggling offenses. The current sentencing guidelines fail to fully account for the severity or extent of defendants’ misconduct in human smuggling cases — resulting in perverse incentives and reduced ability for prosecutors to go after leaders of smuggling organizations. Despite renewed requests from the Justice Department and DHS as recently as last year the Commission has not significantly bolstered penalties for the most dangerous human smugglers.

Thus, the Justice Department and DHS are supporting prosecutors in their efforts to hold accountable individuals charged with dangerous human smuggling, and the Justice Department intends to seek new and increased penalties against human smugglers to properly account for the severity of their criminal conduct and the human misery that it causes. The proposal would make three important changes to U.S. Sentencing Guideline §2L1.1, which governs human smuggling offenses:

• Creating steeper penalty tiers based on the number of people smuggled by the defendant;
• Increasing penalties when the defendant’s conduct results in injury or death to more than one person; and
• Ensuring defendants are subject to sentencing enhancements for sexual assault and other types of prohibited sexual conduct committed during the smuggling offense, even if that conduct occurred outside U.S. jurisdiction.

Deploying Justice Department and DHS Resources for Targeted Enforcement Efforts

The Justice Department is partnering with DHS to direct additional prosecutors and support staff to increase federal immigration-related prosecutions in crucial border U.S. Attorneys’ Offices. This critical operational partnership is being done in spite of a fiscal year 2024 enacted budget that included the largest year-over-year funding decrease to U.S. Attorneys’ Offices in Justice Department history. Efforts include deploying additional DHS Special Assistant U.S. Attorneys to border U.S. Attorneys’ Offices, assigning support staff detailees to critical U.S. Attorneys’ Offices, seeking Justice Department attorneys to serve details in U.S. Attorneys’ Offices in border districts, and partnering with federal agencies to identify additional resources to target these crimes.

In addition to surging new resources to border districts, U.S. Attorneys’ Offices continue to deploy existing resources and strategies to target immigration crimes. 

About Joint Task Force Alpha

The Criminal Division’s Human Rights and Special Prosecutions Section leads JTFA in partnership with the U.S. Attorneys’ Offices and with dedicated support from the Office of International Affairs; Office of Prosecutorial Development, Assistance, and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; and Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from the DHS, FBI, Drug Enforcement Administration, and other partners. JTFA coordinates closely with foreign law enforcement partners on cross-border investigations, arrests of foreign targets, and extraditions. 

The Justice Department announced today that a jury found a former senior executive and a former sales manager of Epsilon Data Management LLC (Epsilon) guilty of federal criminal charges related to the targeting of millions of U.S. consumers for mass-mailing fraud schemes. 

Robert Reger, 57, of Boulder, Colorado, and David Lytle, 64, of Leawood, Kansas, were found guilty today of conspiracy to commit mail and wire fraud and numerous counts of substantive mail and wire fraud. 

According to evidence presented at the two-week trial, the defendants were key participants in a scheme that knowingly sold targeted lists of consumers and their addresses to perpetrators of fraud schemes involving the sending of false and deceptive mail to consumers over the course of 10years. The defendants committed the crimes while working at data broker Epsilon which used transactional data collected from marketing clients to predict new “responsive buyers” using computer algorithms and a database of 100 million U.S. households. The jury found the defendants knew that their scheme was providing data to fraudster clients. Evidence at trial showed that the defendants used Epsilon’s algorithms to predict new lists of consumers most likely to respond to the frauds and that the defendants’ business unit worked with dozens of clients with scam letters promising large prizes or falsely personalized astrological mailings promising wealth.

As part of the scheme, the conspirators sold the names and address of millions of U.S. consumers to perpetrators of schemes engaged in fraud, knowing that their fraudster clients were targeting elderly and vulnerable people. Evidence at trial showed that the defendants sold nearly 100 lists to just one fraudster client, and that the defendants had many other fraudster clients with scam letters. At trial, elderly victims and their adult children testified about the scam letters victims received falsely promising cash prizes. Evidence showed that each of these victims were targeted for fraud by members of the conspiracy. A number of current and former Epsilon employees also testified, along with three witnesses who previously pleaded guilty to conspiracy to commit mail fraud: a list broker and two Epsilon clients who operated mail fraud schemes.

“This case serves as a warning that the Justice Department Consumer Branch and its law enforcement partners will hold corporate executives accountable for fraudulent use of consumer data,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will investigate and prosecute individuals who use sophisticated technology to defraud consumers.”

“Defrauding elderly and vulnerable consumers will not be tolerated in the State of Colorado,” said U.S. Attorney Cole Finegan for the District of Colorado. “This case is an example of the responsibility both executives and companies hold when it comes to gathering and selling personal data, and I hope other companies take note of the serious outcomes of this case.”

“The U.S. Postal Inspection Service (USPIS) sees the conviction of these individuals as a significant victory in our ongoing efforts to protect older adults from fraud and exploitation,” said Inspector in Charge Eric Shen of USPIS’ Criminal Investigations Group. “These criminals preyed on some of the most vulnerable members of our community, and today's verdict sends a clear message that such predatory behavior will not be tolerated. We will continue to work tirelessly to ensure justice is served and to prevent these crimes from happening in the future.”

Evidence at trial showed that Robert Reger worked at Epsilon from 2005 to 2017, where he led sales teams after building and leading the sales unit engaged in fraud, the Direct to Consumer Unit. When Reger left Epsilon, he was senior vice president overseeing the Direct to Consumer Unit. In convicting Reger, the jury found he intentionally joined in the conspiracy and had specific intent to defraud victims of the schemes.

David Lytle worked at Epsilon from 2012 to 2018 as a business development manager recruiting clients for the Direct to Consumer Unit and was responsible for signing up many of the clients engaged in fraud.

The jury found that Reger and Lytle were guilty of conspiracy to commit mail or wire fraud based on evidence that members of the conspiracy knew they were routinely selling consumer data to fraudsters.

The jury found both Reger and Lytle guilty of seven counts of mail fraud. Evidence at trial showed that the conspirators sold lists of consumers to fraudsters, which caused victims to send checks in response to letters promising large cash prizes. The jury found also Reger guilty of six counts of wire fraud and Lytle guilty of 12 counts of wire fraud in connection with electronic shipments of names and addresses and other emails that carried out the objectives of the scheme to defraud.

A sentencing hearing is scheduled on Sept. 30. Reger and Lytle both face a maximum penalty of 20 years in prison for each count.

In 2018, former Epsilon Vice President Steven Fritz Kessler pleaded guilty to conspiracy to commit mail fraud for his participation in the fraudulent scheme.

The defendants’ former employer, Epsilon resolved its criminal liability via a deferred prosecution agreement in 2021, paying $150 million in penalties and victim compensation. That victim compensation effort has returned $122 million to more than 200,000 victims of fraud schemes for which Epsilon provided data. 

USPIS’ Transnational Elder Fraud Strike Force investigated this matter. 

Senior Trial Attorney Alistair Reader and Assistant Director Rachael Doud of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Rebecca Weber for the District of Colorado prosecuted the case. Senior Trial Attorney Ehren Reynolds and former Assistant U.S. Attorney Hetal Doshi for the District of Colorado also assisted in the case, along with outstanding support staff from the Civil Division’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Colorado.

If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.

More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the Federal Trade Commission at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that BALTAZAR GARCIA-MENDOZA, age 33, was charged on May 24, 2024, in a bill of information, with reentry of a previously removed alien, in violation of Title 8, United States Code, Section 1326(a).

According to the bill of information, BALTAZAR GARCIA-MENDOZA reentered the United States after being previously deported on February 3, 2014.  

He faces a maximum term of imprisonment of two (2) years followed by up to one (1) year of supervised release, a fine of up to $250,000.00, and a mandatory special assessment fee of $100.00.   

U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

U.S. Attorney Evans praised the work of the United States Customs and Border Protection in investigating this matter.  Assistant United States Attorney Jon M. Maestri of the General Crimes Unit is in charge of the prosecution.

Today, the Justice Department filed a proposed consent decree to prohibit the National Collegiate Athletic Association (NCAA), the largest national organization regulating intercollegiate athletics, from enforcing the Transfer Eligibility Rule, from enforcing the Rule of Restitution against anyone in connection with the Transfer Eligibility Rule and from implementing rules imposing similar restrictions between Division I colleges and universities.

On Jan. 18, the Justice Department’s Antitrust Division joined a civil lawsuit under the Sherman Act against the NCAA to end the NCAA’s Transfer Eligibility Rule. The department alleged that the rule limited competition for college athletes and restricted their ability to transfer to colleges and universities that provided better educational and athletic opportunities for them. The amended complaint, filed by the Justice Department, 10 states and District of Columbia, also alleged that the NCAA’s Rule of Restitution was anticompetitive because it deterred college athletes from challenging anticompetitive rules in court.

The proposed consent decree, if approved by the court, enjoins the NCAA from enforcing the Transfer Eligibility Rule and from adopting any similar rule in the future. In order to remedy harms caused to college athletes by the Transfer Eligibility Rule, the proposed consent decree requires the NCAA to issue an additional year of eligibility to certain qualifying college athletes who were previously deemed ineligible to participate as a result of the Transfer Eligibility Rule for a season or any portion of a season.

“Free from anticompetitive rules that unfairly limit their mobility, Division I college athletes will now be able to choose the institutions that best meet their academic, personal and professional development needs,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “This resolution is a testament to the benefits of federal and state enforcers working together to ensure free markets and fair competition for all Americans.”

The amended complaint alleged that the NCAA’s one-time-transfer rule unreasonably restrained competition in the markets for athletic services in men’s and women’s Division I basketball and Football Bowl Subdivision (FBS) football, as well as for athletic services in all other men’s and women’s Division I sports. The rule forced college athletes who transfer more than once to sit on the sidelines for an entire season before they were eligible to compete in NCAA athletic competitions at their new school. The amended complaint further alleged that the restriction limited college athletes’ bargaining power and harmed both their educational and athletic experiences. The NCAA’s Division II, which had a similar Transfer Eligibility Rule, has already revised its rule to remove a year-in-residence requirement for transfer students.

As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person should submit written comments concerning the proposed settlement within 60 days following the publication to Chief, Media, Entertainment & Communications, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 7000, Washington, D.C. 20530. At the conclusion of the public comment period, the U.S. District Court for the Northern District of West Virginia may enter the final judgment upon finding it is in the public interest.

Anyone with information about anticompetitive conduct in college sports or any other violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or [email protected].

View the complaint here.

View the consent decree here.

View the competitive impact statement here.

A Texas man pleaded guilty on Friday to conspiracy to commit mail and wire fraud and aggravated identity theft, and a Texas women pleaded guilty yesterday to conspiracy to commit mail and wire fraud both in connection with a wide-ranging scheme to defraud the IRS. In all, seven defendants have now pleaded guilty to this scheme that sought over $111 million in fraudulent tax refunds. 

According to court documents, from 2018 to 2021, Abraham Yusuff, of Round Rock, led a stolen-identity-refund-fraud scheme by knowingly conspiring with Meghan Inyang, of San Antonio, Christopher Eduardo, of Round Rock, Christian Mathurin, of Nashville, Tennessee, Dillon Anozie, of San Antonio, Babajide Ogunbanjo, of Austin, and Aydin Mammadov, of Houston.

As part of the scheme, Yusuff recruited and directed the co-conspirators to provide addresses for the purpose of receiving mail, including IRS correspondence such as identity verification letters. Yusuff and others then registered with the IRS, posing as authorized agents of multiple taxpayers. They used stolen information relating to the taxpayers and their real tax preparers to falsely persuade the IRS they were legitimate representatives. The conspirators then directed the IRS to change the addresses on file for the taxpayers and to send their tax information, including account transcripts and wage records, to the addresses and emails the conspirators controlled.

The conspirators used this information to electronically file more than 370 tax returns claiming fraudulent refunds and directed the IRS to split the refunds among several prepaid debit cards. Prior to issuing tax refunds to some taxpayers, the IRS sent verification letters to the addresses controlled by the conspirators, and the conspirators and others, pretending to be the taxpayers, instructed the IRS to release the refunds.

Yusuff and the co-conspirators obtained the prepaid debit cards that were to be used to receive the fraudulently claimed refunds. Once the refunds were deposited onto the prepaid debit cards, the funds were laundered by purchasing, among other things, money orders from local stores in amounts that were designed to avoid having to furnish identification or trigger reporting requirements. Prepaid debit cards and money orders were used to purchase designer clothing, home renovation materials and used cars at auction. The defendants kept or received money orders purchased with the fraudulent refunds as their share of the illegal proceeds.

Yusuff pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of aggravated identity theft. Inyang pleaded guilty to one count of conspiracy to commit mail and wire fraud. 

Mammadov, Ogunbanjo, Eduardo and Anozie each previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. Mathurin pleaded guilty to one count of aiding and assisting in the filing of a false tax return.  

The defendants each face a maximum penalty of 20 years in prison for conspiracy to commit mail and wire fraud. Yusuff also faces a mandatory penalty of two years in prison for aggravated identity theft, to be served consecutively. Mathurin faces a maximum penalty of three years in prison for aiding and assisting in the filing of a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation and the Treasury Inspector General for Tax Administration investigated the case.

Assistant Chief Michael Boteler and Trial Attorneys Mary Frances Richardson and Curtis Weidler of the Tax Division are prosecuting the case. The U.S. Attorney’s Office for the Western District of Texas assisted in this matter.

The U.S. District Court for the Eastern District of Texas unsealed a grand jury indictment today charging a Texas man with federal dogfighting violations.

Jesus Allen Stephens, of Waskom, Texas, made his initial appearance in court today. He is charged with participating in a major dogfighting event in November 2021 in Waskom, possessing fighting dogs and fighting dogs in an April 2021 dog fight.

According to court documents, Stephens organized and hosted a large-scale dogfighting event on family-owned property in Harrison County, Texas, on Nov. 13, 2021. Stephens and others arranged to fight dogs at the event for gambling and entertainment purposes. Prior to the event, Stephens announced a series of up to 14 matches and sent GPS coordinates to the property to multiple individuals. The fight included out-of-state participants. Law enforcement personnel who disrupted the event found a dogfighting pit structure in addition to other dogfighting evidence.

Under federal law, it is illegal to fight dogs in a venture that effects interstate commerce and to possess, train, transport, deliver, sell, purchase or receive dogs for fighting purposes. The indictment charges Stephens with possessing seven dogs for dogfighting purposes. Stephens is also charged for his participation in another dog fight that occurred on April 10, 2021. Authorities recovered six dogs in conjunction with this investigation.  

If convicted, Stephens faces up to five years in prison and a $250,000 fine for each count charged.

Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) and U.S. Attorney Damien M. Diggs for the Eastern District of Texas made the announcement.

The FBI’s Shreveport Resident Agency and Tyler, Texas, offices are investigating this case. Deputies with the Harrison County, Texas, Sheriff’s Office have also provided invaluable assistance.

Trial Attorney Sarah Brown and Senior Trial Attorney Ethan Eddy of ENRD’s Environmental Crimes Section are prosecuting the case, with assistance from James Noble of the U.S. Attorney’s Office for the Eastern District of Texas.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

A disbarred California attorney pleaded guilty yesterday to conspiring to operate a cryptocurrency Ponzi scheme that defrauded victims of more than $9.5 million.

According to court documents, David Kagel, 85, formerly of Beverly Hills, conspired to fraudulently induce victims to participate in a cryptocurrency Ponzi scheme. Kagel and his co-conspirators promoted investment programs that falsely guaranteed high-yield profits and promised to use artificial intelligence trading bots to trade victims’ investments in cryptocurrency markets. The Ponzi scheme promoter falsely told victims that Kagel, as the promoter’s attorney, held Bitcoin then equivalent to approximately $11 million in escrow that guaranteed victims’ investments against loss for any reason. To create a false sense of security and trust, Kagel provided letters to victims on his firm’s letterhead to fraudulently confirm the promoter’s false statements. Kagel admitted that he and his co-conspirators used victims’ funds for their own personal benefit. 

“David Kagel abused his position as an attorney to earn the trust of investors and to endorse false statements about a purported cryptocurrency investment that was, in fact, a scam. Kagel and his co-conspirators defrauded their victims out of millions of dollars and used the victims’ money to line their own pockets,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “When lawyers lend a veneer of legitimacy to fraudulent schemes, it can lead to devastating losses for victims. The Criminal Division and its law enforcement partners will continue to aggressively pursue such fraudsters and hold them to account.”

“Kagel preyed on trusting individuals through a complex scheme to separate people from their hard-earned money,” said Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office. “IRS-CI is the best in the business at following the money to find the necessary evidence to bring charges against those who seek to prosper on the backs of their victims.”

Kagel pleaded guilty to one count of conspiracy to commit commodity fraud. He is scheduled to be sentenced on Sept. 10 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

David Gilbert Saffron, 51, of Australia, and Vincent Anthony Mazzotta Jr., 52, of Los Angeles, were charged by a federal grand jury in a superseding indictment in December 2023 for their roles in the same cryptocurrency Ponzi scheme, and are awaiting trial that is scheduled to begin on Aug. 13. Saffron and Mazzotta allegedly promoted the investment programs under various names including Circle Society, Bitcoin Wealth Management, Omicron Trust, Mind Capital, and Cloud9Capital. Rather than investing victims’ funds in cryptocurrency, Saffron and Mazzotta allegedly misappropriated victims’ funds to pay for personal expenses including private chartered jet flights, luxury hotel accommodations, private mansion rentals, a personal chef, and private security guards.  

IRS-CI is investigating the case.

Trial Attorney Theodore Kneller of the Criminal Division’s Fraud Section is prosecuting the case.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.

The Justice Department’s Violent Crime Reduction Steering Committee met today to address recent advances in combating violent crime and plans for building on those advances. Over the last few years, Attorney General Merrick B. Garland has increased resources and established violent crime initiatives across the country in order to bring down violent crime. In addition, Deputy Attorney General Lisa Monaco announced the Department’s Comprehensive Strategy for Reducing Violent Crime, which created a Steering Committee chaired by Principal Associate Deputy Attorney General (PADAG) Marshall Miller and composed of leadership and representatives from across the Justice Department, including law enforcement, prosecutorial, and grantmaking components, to plan and assess initiatives, ensure coordination, and form recommendations for Department leadership in the fight to reduce violent crime.

After PADAG Miller called the meeting to order, the Committee was briefed on the latest violent-crime statistics, which show a notable and steady decline in violent crime. From calendar year 2022 to calendar year 2023, data[1] from over 250 cities showed that violent crime declined considerably, including an 11% decrease in murder, an almost 8.5% decrease in rapes, a 2.3% decrease in aggravated assault, and a nearly 2% decrease in robbery.

Early data[2] from the first quarter of 2024 indicates continuing declines in each of these categories — a 18.4% decline in murder, a 15.6% drop in rape, a 6.2% decrease in aggravated assault, and a 2.3% decline in robbery. 

The Committee received updates from the Department’s law enforcement components on progress implementing priority Justice Department violent crime initiatives. The ATF discussed the continued expansion and utilization of Crime Gun Intelligence Centers (CGICs) to combat violent crime. CGICs use cutting-edge technology to rapidly develop and pursue investigative leads, by analyzing firearm and ballistics evidence. The FBI highlighted the work of carjacking task forces — a strategic Department enforcement priority that focuses federal resources on identifying, investigating, and prosecuting the worst carjacking offenders. Carjacking task forces bring together ATF and FBI agents, Justice Department prosecutors, and state, local, Tribal, and territorial law enforcement officers and are now operating in 11 districts across the country.

The Committee was also briefed on recent successes of the Criminal Division’s Violent Crime Initiative (VCI), which works with U.S. Attorneys’ Offices and federal law enforcement in Hartford, Houston; Jackson, St. Louis, and Memphis, and surged resources to Washington, D.C. The briefing highlighted VCI achievements in Houston, where Criminal Division prosecutors and Assistant U.S. Attorneys have surged enforcement and community outreach efforts and use data to focus on the most prolific offenders and recidivists responsible for violence.  Since the launch of the Houston effort, the city has seen a 9% reduction in violent crime and a 20% decline in homicides.

The U.S. Attorney community presented on fruitful strategies in combating violent crime around the country. U.S. Attorney Dawn Ison for the Eastern District of Michigan discussed the One Detroit initiative — a program that brings together law enforcement and community stakeholders to develop and implement a comprehensive violence reduction strategy, combining enforcement, violence prevention and intervention resources, and reentry programs.  Violent crime rates in Detroit have fallen dramatically, with the city closing out 2023 with the fewest homicides on record in over 50 years.  U.S. Attorney Andrew Luger for the District of Minnesota updated the Committee on the successes in his district in cracking down on violent crime, especially during the summer months when violent crime historically surges. U.S. Attorney Luger also shared best practices in fighting summer violent crime surges from around the country, including from the U.S. Attorney’s Office for the District of Connecticut.

The Steering Committee also heard from additional components regarding plans, resources, and best practices to combat violent crime. Specifically, DEA representatives discussed the Tenderloin Project — a joint effort involving federal, state, and local law enforcement partners addressing fentanyl poisonings and drug-related violence in the Tenderloin neighborhood of San Francisco. U.S. Marshals Service representatives described the next phase of its Operation North Star, which utilizes data-driven approaches and surges of law enforcement resources to target the most dangerous armed violent fugitives in selected cities. 

U.S. Attorney Alison Ramsdell for the District of South Dakota then described the need for further federal assistance in combating violent crime in Indian country. The Committee endorsed the launch of an inter-component effort to align the necessary personnel and resources to increase significantly federal support for public safety in Indian country.

At the conclusion of the meeting, Principal Associate Deputy Attorney General Miller indicated that the Steering Committee would report to Department leadership on developments from the Department’s violent crime reduction initiatives and provide recommendations regarding additional policy and enforcement strategies.

[1] Major Cities Chiefs Association Violent Crime Survey Year End Comparison, available at https://majorcitieschiefs.com/wp-content/uploads/2024/02/MCCA-Violent-Crime-Report-2023-and-2022-Year-End.pdf; FBI’s Quarterly Uniform Crime Reports, available at: https://cde.ucr.cjis.gov/LATEST/webapp/#/pages/explorer/crime/quarterly.

[2] This data, from 90 cities, is subject to change as more entities provide data and reporting is finalized.

The Justice Department’s Tax Division filed a civil injunction suit today to permanently bar Niclas Pierre and Elius Bessard and their tax return preparation businesses, Niclas Tax and Express Inc. and Bessard Immigrations and Tax Services LLC, from preparing federal tax returns for others. The United States also seeks an order requiring the defendants to disgorge to the United States their ill-gotten preparation fees.

The complaint, filed in the U.S. District Court for the Southern District of Florida, alleges that Pierre and Bessard, through their businesses, prepared and filed over 8,000 federal income tax returns for customers since at least 2018. According to the complaint, Pierre and Bessard used a variety of schemes to claim false deductions and credits, including knowingly reporting fake or inflated business expenses and fraudulent losses from the supposed sale of personal investments and business property and fraudulently claiming various credits like the Residential Energy Credit and the American Opportunity Credit, all without customers’ knowledge. The complaint alleges Pierre and Bessard hid their fraudulent activity by not identifying themselves as the return preparer, and instead listed another person as the return preparer or listed no one at all.

According to the complaint, the defendants’ fraudulent activities have cost the United States millions of dollars in lost tax revenue, but the exact loss is difficult to estimate because of the complexity of their schemes and their failure to consistently identify themselves as the tax return preparers.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

Attorneys from the Tax Division are handling the case.

Taxpayers seeking a return preparer should remain vigilant against dishonest tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid ghost preparers and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.

In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

The Justice Department issued the following statement from Attorney General Merrick B. Garland on the extradition of Néstor Isidro Pérez Salas, also known as “El Nini”:

“This morning, Néstor Isidro Pérez Salas, also known as ‘El Nini,’ was extradited to the United States. We allege El Nini was one of the Sinaloa Cartel’s lead sicarios, or assassins, and was responsible for the murder, torture, and kidnapping of rivals and witnesses who threatened the cartel’s criminal drug trafficking enterprise. We also allege El Nini was a part of the Sinaloa Cartel’s production and sale of fentanyl, including in the United States. I am grateful to our Mexican government counterparts for their extraordinary efforts in apprehending and extraditing El Nini. With this enforcement action, El Nini joins the growing list of cartel leaders and associates indicted in, and extradited to, the United States. The Justice Department will continue to go after the cartels responsible for flooding our communities with fentanyl and other drugs.”

WASHINGTON – On Tuesday, May 21, and Wednesday, May 22, Acting Associate Attorney General Benjamin C. Mizer (AASG Mizer or Acting Associate) visited Window Rock, Arizona, and the Pueblo of Acoma in New Mexico to participate in government-to-government meetings with Tribal leaders and other officials from the Navajo Nation and the Pueblo of Acoma. He also toured the Tribes’ facilities to learn more about government services offered to the Tribes’ members and met with law enforcement officers, victims’ advocates, and other stakeholders.   

While meeting with these Tribal Nations, the Acting Associate highlighted the Justice Department’s engagement on critical issues including Tribal justice administration, public safety, and victims’ services – all of which the Department supports through grant funding, strategic engagement, and collaboration with Tribal law enforcement. He was joined by Acting Director Daron T. Carreiro of the Office of Tribal Justice (OTJ) throughout the trip.

Acting Associate Attorney General Mizer’s trip to Arizona and New Mexico is the latest in a series of government-to-government meetings with Tribal Nations across Indian Country. Under this Administration, several senior Justice Department officials, including Attorney General Merrick B. Garland, Deputy Attorney General Lisa Monaco, former Associate Attorney General Vanita Gupta, former OTJ Director Tracy Toulou, Assistant Attorney General Todd Kim of the Environment and Natural Resources Division (ENRD), Office on Violence Against Women (OVW) Director Rosie Hidalgo, and Access to Justice (ATJ) Director Rachel Rossi have traveled to states such as Alaska, Louisiana, Minnesota, and Oklahoma to meet with American Indian and Alaska Native community leaders, members, and stakeholders.

These visits are part of the Justice Department’s continued efforts to strengthen ties to Indian Country, elevate the voices and concerns of American Indians and Alaska Natives, and reinforce the Department’s commitment to supporting Tribal sovereignty and investing additional resources to tackle Tribal issues.

Meeting with Navajo Nation Executive Leadership

In Window Rock, Arizona – the capital of the Navajo Nation – Acting Associate Attorney General Mizer began his visit by meeting with Navajo Nation President Dr. Buu Nygren, Attorney General Ethel Branch Esq., and Chief Legal Counsel Bidtah Becker Esq. Deputy Attorney General Heather Clah Esq., Deputy Chief of Staff Kris Beecher Esq., MBA, and others also attended the meeting. They recognized the work and collaboration between the Nation and the Department, identified challenges and areas of opportunity, and discussed various concerns, including prosecutorial declinations, public safety funding gaps, recruitment and retention of law enforcement officers, and the transport of uranium and potentially other radioactive materials across Tribal lands.

After meeting with the executive branch, the Acting Associate addressed members of the 25th Navajo Nation Council and delivered welcoming remarks highlighting the Justice Department’s efforts to enhance Tribes’ access to Department grants and resources. He described initiatives to streamline existing funding opportunities and identify new ones that can help enhance Tribal justice systems and law enforcement, combat domestic and sexual violence, and provide support for victims of crimes. In addition, he heard presentations from the Utah Navajo Health System and the Navajo Nation Office of the Prosecutor.

Touring Navajo Nation Facilities and Meetings with Judicial Branch Leadership and Prosecutors

Following his meetings with President Nygren and members of the Navajo Nation Council, the Acting Associate Attorney General toured the Nation’s various criminal justice system facilities starting with the judicial buildings for the Navajo Nation Supreme Court and Window Rock District Court. During the stop, he spoke with Navajo Nation Chief Justice JoAnn Jayne and Associate Justice Eleanor Shirley about the Court’s funding needs; innovative, community-centered approaches to administering Tribal law, including the Navajo Nation Peacemaking Program; and efforts to create pipelines for more professional opportunities on the Nation.

The Acting Associate then toured the Window Rock District Police Department, where he was briefed by Tribal officials on law enforcement challenges in bolstering public safety, including the housing of offenders and resources for victims of crime.

After the tour, he met with Navajo Nation Chief Prosecutor Vernon L. Jackson Sr. and staff to learn more about the Nation’s efforts to hold bad actors accountable for crimes, as well as how the Justice Department, through its U.S. Attorneys' Offices and the FBI, can better partner with Tribal law enforcement and officials to address their critical needs.

Meetings with Pueblo of Acoma Leadership

On Wednesday, May 22, Acting Associate Attorney General Mizer continued his travels through Indian Country with engagements with members of the Pueblo of Acoma in New Mexico. At Acoma, he had the opportunity to meet with Governor Randall Vicente, First Lieutenant Governor Wendell Chino, and Second Lieutenant Governor Ted Ortiz, as well as other Tribal officials. The group discussed public safety challenges, Tribal courts, cultural resources and patrimony, and water rights, among other topics.

Other Engagements  

During his time in New Mexico, Acting Associate Attorney General Mizer also met with members of the All Pueblo Council of Governors, including Tribal leaders from the Pueblos of Santa Clara, Tesuque, Zia, and Zuni. He also met with staff and Native American law students at the American Indian Law Center’s Pre-Law Summer Institute for American Indians and Alaska Natives, where he discussed the Department’s role in upholding the United States’ trust and treaty obligations for Tribes as well as clerkships and other careers in the law. Additionally, he met with the U.S. Attorney and staff for the District of New Mexico.

Justice Department Resources to Address the Unique Needs of Indian Country

The Navajo Nation and Pueblo of Acoma are currently administering over $8.5 million through 14 active awards from across the Justice Department. These funds help to provide the Navajo Nation and Pueblo of Acoma with the resources needed to address issues pertaining to violence against women, criminal reentry, and law enforcement funding. In addition, among other duties, OTJ serves as the dedicated point of contact and hub of experts for legal and political issues unique to Indian Country. In line with a whole-of-Department approach, the Department previously announced the hiring of additional Assistant U.S. Attorneys and support staff to serve Native communities nationwide bolstering other efforts by the Department, including supporting prosecutors in responding to sexual assault and domestic violence and addressing the crisis of Missing or Murdered Indigenous Persons.

An Arkansas man pleaded guilty yesterday to filing a false individual income tax return.

According to court documents, Carlos Gonzalez, 59, of Rogers, filed false tax returns that underreported the gross receipts from his tree-trimming and removal business, Charley’s Tree Service. From 2014 through 2020, Gonzalez deliberately underreported more than $3 million in gross receipts from his business resulting in a tax loss of approximately $920,694.

Gonzalez pleaded guilty to filing a false 2019 income tax return. A sentencing date has not yet been scheduled. Gonzalez faces a maximum penalty of three years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney David Clay Fowlkes for the Western District of Arkansas made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorneys Wilson Stamm and Curtis Weidler of the Justice Department’s Tax Division and Assistant U.S. Attorney Carly Marshall for the Western District of Arkansas are prosecuting the case.

A federal jury convicted a Texas doctor today for causing the submission of over $70 million in fraudulent claims to Medicare for medically unnecessary orthotic braces and genetic tests ordered through a telemarketing scheme.

According to court documents and evidence presented at trial, David M. Young, M.D., 61, of Fredericksburg, signed thousands of medical records and prescriptions for orthotic braces and genetic tests that falsely represented that the braces and tests were medically necessary and that he diagnosed the beneficiaries, had a plan of care for them, and recommended that they receive certain additional treatment. Young prescribed braces and genetic tests for over 13,000 Medicare beneficiaries, including undercover agents posing as different Medicare beneficiaries, many of whom he did not see, speak to, or otherwise treat. Young’s false prescriptions were then used by brace supply companies and laboratories to bill Medicare more than $70 million. Young was paid approximately $475,000 in exchange for signing the fraudulent prescriptions.

The jury convicted Young of one count of conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison, and three counts of false statements relating to health care matters, each of which carries a maximum penalty of five years in prison. He is scheduled to be sentenced at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Region; and Chief William Marlowe of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.

HHS-OIG and MFCU investigated the case.

Assistant Chief Brynn Schiess and Trial Attorney Ethan Womble of the Texas Strike Force of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

A Huntington Beach, California, man was arrested today on federal charges relating to sending threats to individuals and knowingly making false bomb threats. Kevin Dunlow, age 62, is charged in a complaint unsealed today in the U.S. District Court of the Eastern District of North Carolina following his arrest in California. He will have his initial appearance today, and his detention hearing will be set at a later date.

“Hate-fueled, violent threats endanger the safety of individuals and entire communities,” said Attorney General Merrick B. Garland. “This defendant is accused of making explicit and detailed threats, ranging from making a bomb threat against the Wake County Sheriff’s Office, to threatening an elected official, to telling a Rabbi, ‘I am coming to the Temple to kill all the Jews and the children.’ The Justice Department will prosecute anyone who makes illegal threats motivated by antisemitism or bias of any kind.”

“We will not normalize violent threats in America, whether targeting law enforcement, elected officials, or average citizens,” said U.S. Attorney Michael F. Easley Jr for the Eastern District of North Carolina. “The complaint alleges the defendant made violent threats against people of faith, cops, and public servants. These cases will always receive our highest attention.”

According to the affidavit in support of the criminal complaint, Dunlow made numerous threats targeting multiple entities and individuals, including an elected official, members of law enforcement, and several synagogues located in North Carolina, while residing in California at the time the threats were made. On or about May 7, Dunlow allegedly stated, “Jews didn’t deserve to live. Jews didn’t deserve to be on this earth. I’m going to kill the Jews. I’m coming to the Temple to kill all the Jews and the children.”

In addition, Dunlow allegedly made a false bomb threat to the Wake County, North Carolina, Sheriff’s Office.

Dunlow is charged with illegally using any form of communication to send a threat to harm or kidnap another person intentionally, and he is charged with illegally knowingly making false reports about bombs. If convicted, Dunlow faces five years in prison for each charge. 

U.S. Attorney Michael Easley for the Eastern District of North Carolina made the announcement.

The FBI Charlotte Field Office is investigating the case, with assistance from the FBI Los Angeles Field Office and the Justice Department's National Security Division.

Assistant U.S. Attorney Gabriel Diaz for the Eastern District of North Carolina is prosecuting the case.

A criminal complaint is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

Today, the Justice Department and Environmental Protection Agency (EPA) announced a settlement valued at over $310 million with Norfolk Southern Railway Company holding the company accountable to address and pay for the damage caused by the Feb. 3, 2023, train derailment in East Palestine, Ohio. If the settlement is approved by the U.S. District Court for the Northern District of Ohio, Norfolk Southern will be required to take measures to improve rail safety, pay for health monitoring and mental health services for the surrounding communities, fund long-term environmental monitoring, pay a $15 million civil penalty and take other actions to protect nearby waterways and drinking water resources.

Together with other response costs and rail safety enhancements, Norfolk Southern estimates that it will spend more than $1 billion to address the contamination and other harms caused by the East Palestine derailment and improve rail safety and operations.

In the hours following the derailment, EPA personnel arrived on site and they have remained there to ensure that the people of East Palestine are protected and have the most up-to-date information. In those early days, EPA Administrator Michael S. Regan promised that Norfolk Southern would be held accountable for its actions. Since then, as EPA and the Justice Department pursued a strong enforcement action to deliver on that commitment, EPA has continued to stay engaged in the community, directing cleanup activities, collecting air, water and soil samples and participating in community meetings. The Administration has led a robust, multi-agency effort – including the Department of Transportation, the Federal Emergency Management Agency and the Department of Health and Human Services – to fulfill the President’s commitment to “supporting the people of East Palestine and all those affected in surrounding areas of Ohio and Pennsylvania every step of the way.”

“The President issued an executive order which promised to address the disaster’s long-term effects and to hold Norfolk Southern responsible for its train derailing and the burning of hazardous chemicals in East Palestine. This settlement helps fulfill that promise,” said Acting Associate Attorney General Benjamin C. Mizer. “Importantly, those who will most directly benefit from this settlement are those who were most directly affected by the disaster. And the rail safety commitments will help prevent future catastrophic railway events.”

“No community should have to experience the trauma inflicted upon the residents of East Palestine,” said EPA Administrator Michael S. Regan. “That’s why President Biden pledged from the beginning that his Administration would stand with the community every step of the way. Today’s enforcement action delivers on this commitment, ensures the cleanup is paid for by the company, and helps prevent another disaster like this from happening again. Because of this settlement, residents and first responders will have greater access to health services, trains will be safer, and waterways will be cleaner.”

“The human cost from the Norfolk Southern train derailment disaster was high and continues today,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “That is why we worked to include funding in this agreement for a community health program. Notably, this settlement also secures significant resources to complete cleanup in and around East Palestine as well as measures to detect and address potential rail safety risks.”

“Norfolk Southern’s train derailment and massive chemical spill onto East Palestine’s grounds and into its waterways jeopardized the safety and health of residents, damaging their homes, their lives and the environment,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “That is why the Department of Justice diligently worked to hold Norfolk Southern responsible for this disaster by quickly filing suit and negotiating a resolution that protects residents’ interests.  This settlement requires Norfolk Southern to fund a community health program that monitors and treats individual medical needs stemming from the disaster. It also requires the company to fund the clean-up efforts, to restore the region’s waterways and habitats, and to monitor the drinking water system to ensure it is safe. And it requires them to implement numerous additional safety measures throughout the United States in an effort to prevent another railway community from suffering losses like those East Palestine experienced. While these remedies cannot fully address the impact of this disaster, they are a positive step toward healing and recovery.”

Today’s settlement follows a complaint filed by the United States against Norfolk Southern in March 2023 for unlawful discharges of pollutants and hazardous substances caused by the train derailment. In February 2023, EPA issued a unilateral administrative order, holding Norfolk Southern accountable for the damage done to the community. The order required cleanup of spilled substances and impacted soils, as well as payment of all costs to the U.S. government. EPA also issued an order under the Clean Water Act to clean up oil spilled into the surrounding waterways. Since then, EPA has been directing and overseeing the extensive cleanup activities.

In total, Norfolk Southern estimates that it will spend more than $1 billion to address the contamination caused by the East Palestine derailment and improve rail safety and operations. The amount includes this settlement with the United States valued at over $310 million, as well as around $780 million in environmental response costs incurred by Norfolk Southern. Norfolk Southern has estimated its costs since the derailment will exceed $200 million in rail safety enhancements, including those required by this settlement.

To help ensure that no community goes through what East Palestine residents have faced, the settlement also requires Norfolk Southern to improve coordination with government officials and other stakeholders during emergency responses. Specifically, Norfolk Southern will create and adopt a procedure for coordinating with first responders and government officials, where appropriate, before restoring and reopening tracks for use after a derailment involving spilled hazardous material. Norfolk Southern will also create and adopt a procedure for coordinating with government officials and other stakeholders in advance of any vent and burn proposed by the company.

Under the settlement, Norfolk Southern has agreed to:

• Spend an estimated $235 million for all past and future cleanup costs, so that cleanup efforts can continue and the company, rather than taxpayers, covers the cost.
• Pay $25 million for a 20-year community health program that includes medical monitoring for qualified individuals, mental health services for individuals residing in affected counties as well as first responders who worked at the site and a community facilitation plan to assist community members in using the benefits of the program.
• Spend approximately $15 million to implement long-term monitoring of groundwater and surface water for a period of 10 years.
• Pay $15 million for a private drinking water monitoring fund that will continue the existing private drinking water well monitoring program for 10 years.
• Implement a “waterways remediation plan,” with an estimated budget of $6 million, for projects in Leslie Run and Sulphur Run that will prioritize addressing historical pollution, reducing non-point source pollution through infrastructure upgrades and stormwater management projects and restoring aquatic and riparian habitat.
• Pay a $15 million civil penalty to resolve the alleged violations of the Clean Water Act
• Pay $175,000 for natural resource damages, to be used by the United States to restore, rehabilitate, replace or acquire the equivalent of the natural resources injured as a result of the derailment.

In addition, the consent decree requires Norfolk Southern to undertake projects to improve the safety of transporting hazardous materials by rail, which will include installation of additional devices to detect overheated wheel bearings early enough to prevent derailments like the one that happened in East Palestine. All told, Norfolk Southern has estimated its costs dating from the derailment will exceed $200 million in rail safety enhancements.

The proposed settlement was lodged in the U.S. District Court for the Northern District of Ohio by the Environmental Enforcement Section of the Justice Department’s Environment and Natural Resources Division and the U.S. Attorney’s Office for the Northern District of Ohio. It is subject to a minimum 30-day public comment period and final court approval. The details of today’s settlement are available on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.

Additional Background

EPA is committed to protecting the health and safety of East Palestine and surrounding communities. EPA personnel have been on site since the initial hours of the train derailment, and the agency continues to provide residents the most up-to-date information via the website, welcome center, community meetings, newsletters and more.

Immediately following the train derailment, EPA established a 24/7 air monitoring and sampling network. EPA also began coordinating with state and local officials to monitor environmental impacts on the community. Over the course of the response, EPA has collected over 115 million air monitoring data points and over 45,000 air, water and soil samples, giving the agency confidence in the safety of air, water and soil in the community. Since the evacuation was lifted, no sustained chemicals of concern have been found in the air.

To date, more than 177,000 tons of contaminated soil and more than 69 million gallons of wastewater have been removed from the community and work continues to remove contamination from area creeks and soil sampling at the derailment site to ensure all contamination has been remediated.

The Justice Department and Federal Trade Commission (FTC) jointly launched a public inquiry to identify serial acquisitions and roll-up strategies throughout the U.S. economy that have led to consolidation and harmed competition.

Serial acquisitions and roll-ups are a form of corporate consolidation where a company becomes larger — and potentially dominant — by buying several smaller firms in the same or related sectors or industries. In a joint Request for Information (RFI), the agencies are seeking information from across the public, including consumers, workers, businesses, advocacy organizations, professional and trade associations, local, state and federal elected officials, academics and others to understand how these strategies can stifle competition.

Corporate actors, including private equity firms, engage in these types of acquisitions across a wide array of markets and industries. These transactions often fall below minimum filing thresholds for mergers and therefore are not reported to the federal antitrust agencies, allowing the acquiring companies to amass significant control over key products, services or labor markets without government scrutiny. These serial acquisitions can reduce competition across an entire industry or business sector, which harms consumers, workers and innovation.

“When companies use serial acquisitions and other roll-up strategies to consolidate industries while evading antitrust scrutiny, they deprive the American people of the benefits of competition,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Public input about where these acquisitions have occurred and how they have impacted competition will help us identify and pursue harmful conduct.”

“Firms can use serial acquisitions to roll up markets, consolidate power and undermine fair competition, all while jacking up prices and degrading quality,” said Chair Lina M. Khan of the FTC. “As the FTC scrutinizes these stealth consolidation schemes, we invite the public to submit information about where serial acquisitions have occurred and their effects.”

The agencies seek information from the public on serial acquisitions in all sectors and industries in the U.S. economy, including but not limited to housing, defense, cybersecurity, distribution businesses, agriculture, construction, aftermarket/repair and professional services markets. Comments submitted in response to this RFI will inform the agencies’ enforcement priorities and future actions.

This RFI complements a parallel government inquiry that seeks to understand how certain health care market transactions by private equity firms and other companies may increase consolidation and generate profits while threatening patients’ health, workers’ safety, quality of care and affordable health care for patients and taxpayers.

The Justice Department and FTC’s latest RFI builds on the agencies’ efforts to ensure federal antitrust enforcement tools keep pace with changes in how companies do business. The agencies have proposed amending the premerger notification forms to require merging companies to each disclose more information about their prior acquisition history. In addition, the department and FTC’s 2023 Merger Guidelines recognize that serial acquisitions may violate the antitrust laws.

The public will have 60 days to submit comments at Regulations.gov, no later than July 22. Once submitted, comments will be posted to Regulations.gov.

The Justice Department and the Department of Labor announced today separate agreements with Arthur Grand Technologies Inc. (Arthur Grand), an information technology services firm based in Virginia. The Justice Department’s agreement resolves the department’s determination that Arthur Grand violated the Immigration and Nationality Act (INA) by posting a discriminatory job advertisement in March 2023 that restricted eligible candidates to “only US Born Citizens [white] who are local within 60 miles from Dallas, TX [Don’t share with candidates].” (brackets in original). The Labor Department’s agreement resolves its determination that Arthur Grand violated Executive Order 11246, which prohibits federal contractors from discriminating in employment based on race, color, religion, sex, sexual orientation, gender identity or national origin.

“It is shameful that in the 21st century, we continue to see employers using ‘whites only’ and ‘only US born’ job postings to lock out otherwise eligible job candidates of color. I share the public’s outrage at Arthur Grand’s appalling and discriminatory ban on job candidates based on citizenship status, national origin, color and race,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department, working with other government agencies, will continue to hold employers accountable when they violate our nation’s federal civil rights laws.”

“Over the past 58 years, OFCCP has protected workers and job seekers from workplace discrimination. We are committed to holding federal contractors accountable for outrageous discriminatory practices like this advertisement,” said Acting Director Michele Hodge of the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP). “Companies like Arthur Grand, that accept federal contracts cannot have a ‘whites only’ hiring process.”

In May 2023, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) opened an investigation and determined that Arthur Grand discriminated based on citizenship status and national origin after a recruiter working for Arthur Grand’s subsidiary in India posted the advertisement on the job website Indeed. The advertisement was widely circulated on social media and generated several news articles. Arthur Grand’s actions harmed individuals with permission to work in the U.S., including U.S. citizens born outside the United States and certain non-U.S. citizens, by unlawfully deterring them from applying to the job advertisement.

An investigation by OFCCP determined that, in April 2023, Arthur Grand Technologies advertised an opening for a business analyst position with its sales and insurance claims team in Dallas on a public online hiring website. The advertisement includes a bolded note that read “Only Born US Citizens [White] who are local within 60 miles from Dallas, TX [Don’t share with candidates].” The position, the announcement stated, would serve two clients, HTC Global an information technology company based in Troy, Michigan, and Berkshire Hathaway, the multinational holding company based in Omaha, Nebraska.

As part of the Justice Department settlement, Arthur Grand will pay a civil penalty to the United States. The agreement also requires Arthur Grand to train its personnel on the INA’s requirements, revise its employment policies and be subject to departmental monitoring.

Under the Labor Department conciliation agreement, Arthur Grand will pay compensation to individuals who filed complaints with its Office of Federal Contract Compliance Programs (OFCCP). In addition, Arthur Grand has committed to providing workplace specific training for all company employees involved in recruiting, selecting candidates or tracking expressions of interest for open positions.

IER is responsible for enforcing the INA’s anti-discrimination provision. This law prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices and retaliation and intimidation. 

Find more information on how employers can avoid discrimination in recruitment and hiring on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify), or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a live webinar; watch an on-demand presentation or visit IER’s English and Spanish websites. Subscribe for email updates from IER.

The Labor Department’s OFCCP enforces Executive Order 11246, Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. Learn more about OFCCP here.

The Justice Department, along with 30 state and district attorneys general, filed a civil antitrust lawsuit against Live Nation Entertainment Inc. and its wholly-owned subsidiary, Ticketmaster LLC (Live Nation-Ticketmaster) for monopolization and other unlawful conduct that thwarts competition in markets across the live entertainment industry. The lawsuit, which includes a request for structural relief, seeks to restore competition in the live concert industry, provide better choices at lower prices for fans, and open venue doors for working musicians and other performance artists.

The complaint, filed today in the U.S. District Court for the Southern District of New York, alleges that Live Nation-Ticketmaster unlawfully exercises its monopoly power in violation of Section 2 of the Sherman Act. As a result of its conduct, music fans in the United States are deprived of ticketing innovation and forced to use outdated technology while paying more for tickets than fans in other countries. At the same time, Live Nation-Ticketmaster exercises its power over performers, venues, and independent promoters in ways that harm competition. Live Nation-Ticketmaster also imposes barriers to competition that limit the entry and expansion of its rivals.

“We allege that Live Nation relies on unlawful, anticompetitive conduct to exercise its monopolistic control over the live events industry in the United States at the cost of fans, artists, smaller promoters, and venue operators,” said Attorney General Merrick B. Garland. “The result is that fans pay more in fees, artists have fewer opportunities to play concerts, smaller promoters get squeezed out, and venues have fewer real choices for ticketing services. It is time to break up Live Nation-Ticketmaster.”

“Today’s announcement reflects the latest efforts by the Justice Department to combat corporate misconduct,” said Deputy Attorney General Lisa Monaco. “Our fight against corporate wrongdoing includes an intense focus on anticompetitive conduct — which disadvantages consumers, workers, and businesses of all kinds. Today’s complaint alleges that Live Nation-Ticketmaster have engaged in anticompetitive conduct to cement their dominance of the live concert market and act as the gatekeeper for an entire industry. Today’s action is a step forward in making this era of live music more accessible for the fans, the artists, and the industry that supports them.”

“The Department is committed to competition throughout the economy, including in live music,” said Acting Associate Attorney General Benjamin C. Mizer. “As our complaint alleges, Live Nation-Ticketmaster monopolizes the markets for concerts and other live events at the expense of fans, venues, and artists across the country. The Department is proud to bring this case to restore competition to this industry.”

“The live music industry in America is broken because Live Nation-Ticketmaster has an illegal monopoly,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Our antitrust lawsuit seeks to break up Live Nation-Ticketmaster’s monopoly and restore competition for the benefit of fans and artists.”

According to the complaint, Live Nation-Ticketmaster has unlawfully maintained monopolies in several concert promotions and primary ticketing markets and engaged in other exclusionary conduct affecting live concert venues, including arenas and amphitheaters. The complaint further alleges that Live Nation-Ticketmaster’s exclusionary practices fortify and protect what it refers to as its “flywheel.” The flywheel is Live Nation-Ticketmaster’s self-reinforcing business model that captures fees and revenue from concert fans and sponsorship, uses that revenue to lock up artists to exclusive promotion deals, and then uses its powerful cache of live content to sign venues into long term exclusive ticketing deals, thereby starting the cycle all over again. Live Nation-Ticketmaster’s anticompetitive conduct creates even more barriers for rivals to compete on the merits. Specifically, Live Nation-Ticketmaster engaged in a variety of tactics to eliminate competition and monopolize markets:

• Relationship with Oak View Group: Live Nation-Ticketmaster exploits its longtime relationship with Oak View Group, a potential competitor-turned-partner that has described itself as a “hammer” and “protect[or]” for Live Nation. In recent years, Oak View Group has avoided bidding against Live Nation for artist talent and influenced venues to sign exclusive agreements with Ticketmaster. For example, Live Nation has scolded Oak View Group multiple times for trying to compete. In one instance, Live Nation asked, “who would be so stupid to . . . play into [an artist agent’s] arms,” and on another occasion, Live Nation stated, “let’s make sure we don’t let [the artist agency] now start playing us off.”
• Retaliating Against Potential Entrants: Live Nation-Ticketmaster successfully threatened financial retaliation against a firm unless it stopped one of its subsidiaries from competing to gain a foothold in the U.S. concert promotions market.
• Threatening and Retaliating Against Venues that Work with Rivals: Live Nation-Ticketmaster’s power in concert promotions means that every live concert venue knows choosing another promoter or ticketer comes with a risk of drawing an adverse reaction from Live Nation-Ticketmaster that would result in losing concerts, revenue, and fans.
• Locking Out Competition with Exclusionary Contracts: Live Nation-Ticketmaster locks concert venues into long-term exclusive contracts so that venues cannot consider or choose rival ticketers or switch to better or more cost-effective ticketing technology. These contracts allow Live Nation-Ticketmaster to reduce competitive pressure to improve its own ticketing technology and customer service.
• Blocking Venues from Using Multiple Ticketers: Live Nation-Ticketmaster’s conduct and exclusive contracts prevent new and different promotions and ticketing competitors and business models from emerging. They block venues from being able to use multiple ticketers, who would compete by offering the best mix of prices, fees, quality, and innovation to fans.
• Restricting Artists’ Access to Venues: Live Nation-Ticketmaster has increasingly gained control of key venues, including amphitheaters, through acquisitions, partnerships, and agreements. Live Nation-Ticketmaster restricts artists’ use of those venues unless those artists also agree to use their promotion services.
• Acquiring Competitors and Competitive Threats: Live Nation-Ticketmaster strategically acquired a number of smaller and regional promoters that it had internally identified as threats. This has undermined competition and impacted artist compensation.

Live Nation Entertainment Inc. is a Delaware corporation headquartered in Beverly Hills, California. It describes itself as the “largest live entertainment company in the world,” the “largest producer of live music concerts in the world,” and “the world’s leading live entertainment ticketing sales and marketing company.” Live Nation also owns or controls more than 265 concert venues in North America, including more than 60 of the top 100 amphitheaters in the United States. It generates over $22 billion globally in annual revenue from three business segments: concerts (e.g., promotions, venue management, and music festival production), ticketing (e.g., Ticketmaster business), and sponsorship and advertising.

Ticketmaster LLC is a wholly owned subsidiary of Live Nation. It is a Virginia limited liability company with headquarters in Beverly Hills. Ticketmaster sells concert tickets to fans when those tickets first go on sale and operates resale platforms that enable purchasers to resell those tickets at a later time. Ticketmaster is by far the largest concert ticketing company in the United States, multiple times the size of its closest competitor.

View the complaint.

The Justice Department’s Civil Rights Division and the Department of Education’s Office for Civil Rights today announced the release of a webinar setting out ways for school districts across the country to increase accessibility for students and teachers with disabilities in their school facilities.  The webinar, “Accessible Public Schools,” was developed by the Justice Department in consultation with the Department of Education and responds to a U.S. Government Accountability Office (GAO) investigation and report issued in 2020: School Districts Need Better Information to Help Improve Access for People with Disabilities. That report detailed significant accessibility barriers for students with disabilities across the country in the nation’s K-12 public school buildings, and recommended the federal government provide additional resources for school districts. 

“It is critical that students with disabilities, and family members, friends, neighbors, teachers and staff with disabilities, are able to access school buildings for learning as well as extracurricular activities and community events,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to using all available tools, including enforcement of the Americans with Disabilities Act, to increase accessibility in school buildings. It is equally important that school district personnel have ready access to tools and information, like this webinar, to understand their obligations under the law.” 

“Schools need to be accessible to everyone,” said Assistant Secretary for Civil Rights Catherine E. Lhamon of the Department of Education. “More than 50 years after the enactment of Section 504 of the Rehabilitation Act of 1973 and thirty years after the enactment of the ADA, students with disabilities should not still encounter barriers in their public schools. The Office for Civil Rights hopes resources like this webinar, in conjunction with vigorous enforcement, will ensure accessibility to school buildings for all students with disabilities and their families.”

In its report, the GAO recommended that the Justice Department, in consultation with the Department of Education, create guidance on K-12 school accessibility issues. The webinar, featuring a Justice Department Architect, lays out the common accessibility problems found in schools (and identified in the GAO report) and ways to address them. 

The webinar can be found at https://youtu.be/M5F0IzIjYAk. The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the ADA, please call the Justice Department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov. For more information about the work of the Department of Education’s Office for Civil Rights regarding discrimination on the basis of disability, visit www2.ed.gov/about/offices/list/ocr/frontpage/pro-students/issues/disability-issue.html.

El Departamento de Justicia de los EE. UU. y el Departamento de Trabajo de los EE. UU. anunciaron hoy acuerdos independientes con Arthur Grand Technologies Inc. (Arthur Grand), una empresa de servicios de tecnología de la información con sede en Virginia. El acuerdo del Departamento de Justicia resuelve la determinación del Departamento que Arthur Grand infringió la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) mediante la publicación de un anuncio discriminatorio en marzo del 2023, que posteriormente se hizo viral en las redes sociales, que restringió a los candidatos a puestos de trabajo elegibles únicamente a «ciudadanos nacidos en los EE. UU. [blancos] que viven a menos de 60 millas de Dallas, TX [No compartir con los candidatos]». (Los corchetes aparecen en la versión original). Además, el acuerdo del Departamento de Trabajo resuelve su determinación que Arthur Grand infringió la Orden Ejecutiva 11246, que prohíbe a los contratistas federales discriminar en el empleo por motivos de raza, color de piel, religión, sexo, orientación sexual, identidad de género o nacionalidad de origen. 

«Es vergonzoso que, en el siglo XXI, seguimos viendo a empleadores que ponen “blancos solamente” y “solamente personas nacidas en los EE. UU.” en sus publicaciones de empleo para bloquear a candidatos de empleo de color que de otra forma serían elegibles. Comparto la indignación del público ante la prohibición aterradora y discriminatoria de Arthur Grand de candidatos a un puesto de trabajo en función de su estatus de ciudadanía, nacionalidad, color de piel o raza», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá colaborando con otras agencias gubernamentales y responsabilizando a empleadores cuando vulneren las leyes federales de derechos civiles de nuestra nación».

«A lo largo de los últimos 58 años, la OFCCP ha protegido a trabajadores y postulantes de empleo de la discriminación en el lugar de trabajo. Estamos comprometidos a hacer a los contratistas federales rendir cuentas de prácticas discriminatorias escandalosas como este anuncio», declaró Michele Hodge, la Directora en funciones de la Oficina de Programas de Cumplimiento de Contratos Federales (OFCCP, por sus siglas en inglés). «Las compañías como Arthur Grand, que aceptan contratos federales, no pueden emplear un proceso de contratación para “blancos solamente”».

En mayo del 2023, la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que pertenece a la División de Derechos Civiles, inició una investigación y determinó que Arthur Grand discriminó con base en el estatus de ciudadanía y nacionalidad de origen después de que un reclutador, que trabajaba para la filial de Arthur Grand en la India, publicara el anuncio en el sitio web de empleo Indeed. El anuncio se difundió ampliamente en las redes sociales y generó varios artículos de noticias. Las acciones de Arthur Grand perjudicaron a las personas con permiso para trabajar en los EE. UU., incluidos los ciudadanos nacidos fuera de los Estados Unidos y determinados no ciudadanos de los EE. UU., disuadiéndoles ilegalmente de presentar una solicitud para el anuncio de empleo. 

Una investigación por la OFCCP determinó que, en abril del 2023, Arthur Grand Technologies publicó un vacante para un puesto de analista empresarial con su equipo de reclamos de seguros y ventas en Dallas en un sitio web público de contratación en línea. El anuncio incluye una nota en letra negrita que ponía «Solamente ciudadanos nacidos en los EE. UU. [blancos] que viven dentro de un radio de 60 millas de Dallas, TX [No compartir con los candidatos]». Según indicaba en anuncio, el puesto serviría a dos clientes, HTC Global, una compañía de tecnología de la información con sede en Troy Michigan, y Berkshire Hathaway, la compañía matriz multinacional con sede en Omaha, Nebraska.

Como parte del acuerdo del Departamento de Justicia, Arthur Grand pagará una sanción civil a los Estados Unidos. El acuerdo también requiere que Arthur Grand capacite a su personal en cuanto a los requisitos de la INA, que revise sus políticas de empleo y que se someta a la supervisión del Departamento. 

Según el acuerdo conciliatorio del Departamento de Trabajo, Arthur Grand pagará $31,000 en compensación a las personas que presentaron quejas a su OFCCP. Además, Arthur Grand se ha comprometido a proporcionar formación específica en el lugar de trabajo para todos los empleados de la empresa que participen en el reclutamiento, la selección de candidatos o el seguimiento de expresiones de interés para puestos vacantes.

La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Esta ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.  

Puede obtener más información sobre cómo los empleadores pueden evitar la discriminación en la contratación y el reclutamiento en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden  presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito, visualizar una  presentación a la carta o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.

La OFCCP del Departamento de Trabajo hace cumplir la Orden Ejecutiva 11246, la Sección 503 de la Ley de Rehabilitación de 1973 y la ley de Asistencia para la Readaptación de Veteranos de Vietnam de 1974. Aprenda más sobre la OFCCP aquí.

A federal jury convicted a Nevada doctor yesterday for his role in defrauding Medicare and Medicaid of nearly $2 million.

According to court documents and evidence presented at trial, Eduardo Abellana, M.D., 75, of Las Vegas, referred medically unnecessary prescriptions to City Drugs, a Detroit, Michigan, pharmacy, for patients he had not treated in exchange for cash kickbacks paid by the owners of the pharmacy. Abellana and his co-conspirators caused nearly $2 million of loss to Medicare and Medicaid.

The jury convicted Abellana of conspiracy to commit health care fraud and conspiracy to defraud the United States and receive kickbacks. He is scheduled to be sentenced on Sept. 25, and faces a maximum penalty of 10 years in prison on the conspiracy to commit health care fraud count and five years in prison on the conspiracy to defraud the United States and receive kickbacks count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office; and Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Region made the announcement.

The FBI Detroit Field Office and HHS-OIG investigated the case.

Trial Attorneys Claire Sobczak and Kelly M. Warner of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

A federal grand jury in Santa Ana, California, returned a superseding indictment today charging a California man with wire fraud and money laundering for making fraudulent claims to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, two federal programs created to provide financial assistance to Americans suffering economic harm as a result of the COVID-19 pandemic. He had previously been charged with tax evasion and filing false corporate tax returns.

According to the superseding indictment, from May 2020 to December 2021, Mehrdad “Mitch” Tabrizi, of Aliso Viejo, submitted two fraudulent PPP applications on behalf of Life Fleet Inc., a California business he owned, seeking $695,565 in loans. In the applications, Tabrizi allegedly claimed that Life Fleet had at least 54 employees and monthly payroll obligations of $139,313. After receiving the PPP funds, Tabrizi allegedly used the proceeds for personal expenses. Similarly, Tabrizi allegedly filed a false EIDL application claiming that Life Fleet had gross revenues of more than $4 million and 63 employees. In reality, however, Life Fleet allegedly was not in business, had no revenue and had no employees.

Tabrizi also allegedly filed a fraudulent EIDL application in the name of Resonante Group Inc., a California company he controlled. According to the superseding indictment, this EIDL application falsely claimed Resonante Group had gross revenues of more than $19 million and over 300 employees. As a result, the Small Business Administration allegedly disbursed approximately $319,800 into bank accounts controlled by Tabrizi, which he was not entitled to receive and used for personal expenses.

Tabrizi was previously charged with tax evasion and filing false tax returns. According to the superseding indictment, Tabrizi operated Socal Medical Transportation Inc., a company incorporated in California. In 2015 and 2016, Tabrizi allegedly deposited approximately $2.6 million of income into a bank account but did not disclose these funds to the CPA firm he hired to prepare Socal Medical’s corporate tax returns. Instead, Tabrizi allegedly informed the CPA firm that these funds had been received by a separate business.

If convicted, he faces a maximum penalty of 20 years in prison for each of four counts of wire fraud, 10 years in prison for each of four counts of money laundering, five years in prison for each of two counts of tax evasion and three years in prison for each of two counts of filing false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Martin Estrada of the U.S. Attorney’s Office for the Central District of California made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorney Boris Bourget of the Justice Department’s Tax Division and Assistant U.S. Attorney Brett Sagel for the Central District of California are prosecuting the case.

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

The Justice Department and Environmental Protection Agency (EPA) today announced the filing of a felony criminal charge and related civil complaint and consent decree under the Clean Air Act (CAA) against TPC Group LLC, a Texas petrochemical company. TPC Group also entered a plea of guilty today to a one-count information charging the company with a violation of the Clean Air Act before U.S. Magistrate Judge Zack Hawthorn for the Eastern District of Texas.

The filings address explosions that caused injuries, evacuations and significant air pollution. The company has agreed to pay over $30 million in criminal fines and civil penalties and spend approximately $80 million to improve its risk management program and improve safety issues at TPC Group’s Port Neches and Houston facilities.

According to information provided in court, on Nov. 27, 2019, two explosions at TPC Group’s Port Neches facility prompted evacuations of thousands of residents from the City of Port Neches and surrounding areas, released more than 11 million pounds of extremely hazardous substances and caused more than $130 million in offsite property damage and other impacts to human health and the environment. Four employees and one contractor suffered injuries including concussions, burns, perforated eardrums, tinnitus and cracked teeth.

“Port Neches residents will always remember the day before Thanksgiving 2019,” said Acting Associate Attorney General Benjamin C. Mizer. “That day, powerful explosions at the TPC Group’s facility caused evacuations, injuries, air pollution, and more than $130 million in damage. This entirely preventable accident was the result of the company’s failure to take the necessary precautions to control a hazardous chemical even though it was well aware of the serious risks. Today’s criminal plea and settlement send a clear message that safety measures are not optional and that we will hold violators accountable.”

“When a disaster happens like at Port Neches, public safety is paramount,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “TPC Group’s knowing failure to comply with the chemical accident prevention provisions of the Clean Air Act at its Port Neches and Houston facilities placed its workers, neighbors and the environment in danger. Community members have expressed concerns about potential explosions happening at TPC Group’s Houston facility, like what happened in 2019 at Port Neches. Importantly, today’s criminal plea and civil settlement includes safety requirements that will help prevent future incidents.”

“TPC recklessly risked the lives of thousands of Port Neches residents and illegally released millions of gallons of extremely hazardous substances into the environment,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Today’s criminal and civil settlements hold TPC accountable for endangering the Port Neches community and require the company to invest approximately $80 million to improve safety at TPC Group facilities. These settlements highlight the strong partnership between EPA’s criminal and civil enforcement programs and demonstrate EPA’s emphasis on a more strategic and collaborative approach to enforcement and compliance assurance.”

“Protecting our environment and the safety of the citizens of Southeast Texas will always be a priority of our office,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “The community of Port Neches and their neighbors will never forget the horror of being awakened in the middle of the night – hours before Thanksgiving – by the frightening sounds of the TPC plant explosion at their doorsteps. TPC violated the law when it ignored its own safety protocols, which led to a disastrous explosion with catastrophic consequences that directly endangered the lives of TPC workers and the surrounding community. Today’s guilty plea shows that businesses that choose to place profits over safeguards and legal compliance will face serious consequences.”

“The people of Port Neches had their lives disrupted because of a major disaster in their neighborhood. TPC must uphold the accident-prevention standards in the Clean Air Act to ensure families and workers are not harmed,” said EPA Regional Administrator Dr. Earthea Nance. “And when companies do not comply with these important safety regulations, EPA and our federal partners will continue to hold them accountable, in this case by requiring TPC to pay $80 million to reduce health risks at its facility and $12.1 million in civil penalties so communities like Port Neches will be protected from harm in the future.”

TPC Group’s facility produced the hazardous chemical Butadiene, which is used in the production of tires, latexes and plastics. Butadiene can form a “popcorn polymer,” which can grow at an accelerating rate and cause catastrophic events, including explosions and fires. The company was aware that this polymer was forming in some of its production lines, and the risks it posed, but failed to take necessary measures to prevent the explosion.

An initial explosion occurred at the facility’s South Unit. A secondary explosion followed, and a series of fires erupted at the facility which blew contaminants into the air. As a result of the explosions, mandatory evacuations were ordered for residents within a four-mile radius of the facility, voluntary orders to shelter in place were issued for residents in the surrounding area and local schools were closed for multiple days to allow buildings to be cleaned, repaired and inspected.

The company has agreed to pay $18 million in criminal fines. The plea agreement also includes a one-year term of probation and publishing of a public apology. The $12.1 million in civil penalty payments will be made through bankruptcy proceedings. TPC Group will also spend approximately $80 million to improve its risk management program and improve safety issues at both facilities. 

TPC Group has been criminally charged and pleaded guilty to knowingly failing to implement its own written operating procedures, including monthly flushing of production lines, that would have prevented the explosion. Clean Air Act regulations require planning to prevent accidental releases of hazardous chemicals and makes implementation of those plans mandatory.

The civil complaint includes 27 claims and counts – some of which included numerous violations – against TPC Group for violations of the CAA at its Port Neches facility, including numerous violations that led to the 2019 explosions. The Port Neches facility is now used for storage purposes only. The civil complaint also includes 26 claims and counts against TPC Group for CAA violations at the company’s Houston facility, including failing to promptly take corrective actions for hundreds of pieces of process equipment and failing to address similar conditions that led to the Port Neches explosions.

Under the proposed civil consent decree, TPC Group is required to update safety information for equipment at its Port Neches and Houston facilities to ensure that they are designed, maintained, inspected and operated in a safe manner. TPC Group must overhaul its process hazard analysis program to ensure prompt completion of all corrective actions and remedial measures to mitigate hazards at the facilities. TPC Group will also update operating procedures and training for its workers and contractors. TPC Group has agreed to audit and revise their emergency shutdown procedures and implement key performance indicators.

The company will now provide incident investigations to EPA and release incident report information to the public on a publicly available website. The consent decree requires TPC Group to conduct an audit of the relief system design at the Houston facility to ensure the system can handle all appropriate scenarios.

TPC Group will also install and continually use air monitors at the fence line of each facility and in the neighboring communities. Data from the air monitors will be available on TPC Group’s website. TPC Group agreed to conduct an inherently safer technology review to identify safer technology alternatives that minimize or eliminate the potential for accidental chemical releases. TPC Group is required to host community meetings to inform the community about risks associated with its facilities, share evacuation routes and share information about how to properly shelter in place.

Under section 112(r) of the CAA, facilities like TPC Group’s in Port Neches and Houston must identify hazards, design and maintain a safe facility, minimize the consequences of accidental releases that do occur and comply with regulatory prevention measures. Failing to comply with these requirements increases the risk of accidents and threatens surrounding communities that are commonly overburdened with pollution.

EPA investigated this matter and received extensive cooperation from the Occupational Safety and Health Administration (OSHA). On the date of the explosion, a Unified Command was established that included Jefferson County Judge Jeff Branick, the Jefferson County Office of Emergency Management, the EPA, the Texas Commission on Environmental Quality and TPC Group. If you know of an unsafe industrial situation or an environmental violation, report it here: echo.epa.gov/report-environmental-violations.

Attorneys from the Justice Department’s Environment and Natural Resources Division (ENRD), Environmental Enforcement Section are handling the civil case. Attorneys from ENRD’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of Texas are jointly prosecuting the criminal case.

Additional information about the explosion can be found on the Justice Department’s website: www.justice.gov/enrd/case/tpc-group-llc-investigation-port-neches-explosion.

The proposed consent decree was lodged in the U.S. District Court for the Eastern District of Texas and is subject to a 30-day public comment period and final court approval. The consent decree and information on how to submit a public comment are also available on the Justice Department’s website: www.justice.gov/enrd/consent-decrees.

The Justice Department and Stanford University will hold a public workshop on May 30 to discuss the state of competition across the Artificial Intelligence (AI) technology industry from the chip to the app.

“The Antitrust Division is excited to partner with Stanford University on this workshop to learn from stakeholders at various levels of the AI stack who are all adapting to the fast-paced developments in AI,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “We look forward to hearing about how competition is developing, bottlenecks and other challenges established firms and new entrants are facing and how AI is affecting the authors, musicians, artists and other content creators that drive creativity and innovation in our economy.”

The Justice Department’s Antitrust Division, Stanford Graduate School of Business and Stanford Institute for Economic Policy Research will cohost the free full-day workshop to discuss competition and AI industry structure, including competition in AI models, semiconductors, the cloud and AI applications. The workshop will be livestreamed from 9 a.m. PT to 6:00 p.m. PT. A recording of the workshop will be available on Stanford’s event page after the workshop. An agenda and a list of speakers will be available in the near future on the Antitrust Division’s event page and Stanford’s event page. Members of the public should register on Stanford’s event page and members of the press should send a copy of their registration confirmation to [email protected] on their registration email.

In a series of panels, presentations and remarks, government and industry representatives, academics from both law and business, content creators, inventors and other tech industry stakeholders will explore how competition at one level of the AI stack affects other AI technologies, how standards and accountability systems can be designed to promote competition and the challenges AI poses to content creators. The workshop also will explore how competition affects the funding decisions of investors and the practical considerations that investors face when evaluating whether to invest in startups.

The Justice Department invites comments from the public on the topics covered by this workshop. Interested parties may submit public comments online now through July 15 at [email protected].

The Justice Department announced today that it filed a complaint and proposed consent decree to resolve allegations that the city of Anoka, Minnesota, violated the Americans with Disabilities Act (ADA) and the Fair Housing Act by denying tenants with mental health disabilities an equal opportunity to receive emergency assistance.

Under Anoka’s rental licensing and “crime free” housing ordinance, the city can penalize landlords for “nuisance calls” to their properties. Nuisance calls include disorderly conduct and “unfounded” calls to the police. The department previously found that because of the nuisance ordinance, when tenants with mental health disabilities and those associated with them (like their families or landlords) request or receive emergency assistance, they risk eviction, fines or loss of a rental license.

“So-called ‘crime-free’ ordinances are often fueled by discriminatory objectives, and have the effect of destabilizing communities and promoting fear intended to drive people from their homes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Anoka’s so-called ‘crime-free’ housing program does not protect public safety but rather risks lives by discouraging people with disabilities and their loved ones from calling for help when needed most. No person should feel discouraged from seeking help during a mental health crisis. The Justice Department is committed to contesting discriminatory ‘crime free’ ordinances and programs that block, discourage or penalize people for simply accessing emergency services.”

For years, the city also sent weekly reports to landlords detailing calls for emergency service from all rental properties. These reports often revealed personal and sensitive information about residents’ mental health disabilities, such as their diagnoses, medications or even suicide attempts. The city used these reports to notify landlords of potential nuisance calls and encourage landlords to evict tenants.

The proposed consent decree resolves the department’s allegations that the city, through its “crime-free” housing program, discouraged and prevented tenants with mental health disabilities and those associated with them from seeking emergency assistance, including during medical or mental health crises.

Under the proposed consent decree, which must be approved by the U.S. District Court for the District of Minnesota, the city has agreed to pay a total of $175,000 to compensate individuals harmed by the program; end its practice of publicizing the disability, medical and health information of individuals with mental health disabilities; adopt non-discrimination policies and complaint procedures; notify landlords, property owners and tenants of changes to the program; designate an ADA coordinator; train staff and provide reports to the department during a monitoring period.

Individuals who believe they were harmed by the city’s “crime-free” housing program may be entitled to compensation under the settlement fund and should contact the Justice Department at [email protected] or by calling the toll-free number 888-473-3940.

In late 2022, the department also settled a lawsuit against the City of Hesperia, California, and the San Bernardino County Sheriff’s Department alleging that their implementation of a “crime-free” program and ordinance discriminated on the basis of race and national origin in violation of the Fair Housing Act and Title VI of the Civil Rights Act of 1964. Black renters were almost four times more likely, and Hispanic renters 29% more likely, to be evicted under Hesperia’s program than white renters.

For more information on the Civil Rights Division and the civil rights laws it enforces, please visit www.justice.gov/crt. Individuals may submit a report of discrimination online, call 833-591-0291 to report housing discrimination or call 800-514-0301 (TTY 1-833-610-1264) to report disability discrimination and to reach the department’s ADA Information Line.

The Justice Department today filed suit against the State of Oklahoma to challenge House Bill 4156 (HB 4156) under the U.S. Constitution’s Supremacy Clause and Foreign Commerce Clause. The Constitution assigns the federal government the authority to regulate immigration and manage our international borders. Pursuant to this authority, Congress has established a comprehensive immigration framework governing noncitizens’ entry, reentry and presence. Because HB 4156 is preempted by federal law and violates the U.S. Constitution, the Justice Department seeks a declaration that HB 4156 is invalid and an order enjoining the state from enforcing the law.

“Oklahoma cannot disregard the U.S. Constitution and settled Supreme Court precedent,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We have brought this action to ensure that Oklahoma adheres to the Constitution and the framework adopted by Congress for regulation of immigration.”   

As outlined in the complaint, Oklahoma’s law would create new state crimes to regulate noncitizens’ entry and reentry into and presence in, the United States, with charges ranging from a misdemeanor to a felony. In particular, HB 4156 requires noncitizens convicted of violating its provisions to leave the State, effectively granting Oklahoma the independent authority to exile noncitizens from the State and permitting a patchwork of state immigration schemes. The Supreme Court recognized in Arizona v. United States, 567 U.S. 387 (2012), however, that the authority to admit noncitizens and to determine their status in the United States is a core responsibility of the federal government. HB 4156 impedes the federal government’s comprehensive immigration scheme and interferes with its conduct of foreign relations.

The suit was filed on behalf of the United States, including the Justice Department, Department of Homeland Security and Department of State.

The U.S. District Court for the District of Connecticut issued a permanent injunction today against a Connecticut tax return preparer, Juan Carlos Frias, and his businesses, USA Tax LLC, Multi Latin Services LLC and Connecticut Tax and Services Inc., permanently barring them from preparing federal tax returns for others. 

According to Justice Department’s complaint, from 2017 through 2021, Frias and his companies prepared over 10,000 tax returns for customers. The complaint alleges that, during those years, Frias and his companies displayed a pattern of filing tax returns that understated customers’ liabilities and inflated their refunds by falsifying business expenses, reporting false filing statuses and qualifying children or dependents, claiming false education and residential energy credits and fabricating erroneous itemized deductions, including medical and dental expenses, charitable deductions and impairment-related work expenses.

According to the IRS, anyone who is paid to prepare or assists in preparing federal tax returns is legally required to have a valid Personal Tax Identification Number (PTIN) and paid preparers must sign and include their PTIN on the return. Not signing the return, commonly known as “ghost preparation” is often a red flag that a preparer is attempting to avoid detection by the IRS. The United States alleges that Frias acted as a ghost preparer.

According to the court’s order, Frias and his businesses consented to entry of the injunction, which permits the United States is permitted to conduct post-judgment discovery to monitor compliance with the injunction. The order requires that they (1) send notice of the injunction to each person for whom Frias and his companies prepared federal tax returns, amended tax returns or claims for refund between Jan. 1, 2018, to the present and (2) post a paper copy of the injunction at all physical locations where they conducted business and an electronic copy of the injunction on any business website, social media site or social media profile they maintain and create over the next five years.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid ghost preparers and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers.

In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

Two related companies that operated the motor tanker PS Dream – Prive Overseas Marine LLC and Prive Shipping Denizcilik Ticaret – pleaded guilty today to conspiracy, knowingly violating the Act to Prevent Pollution from Ships (APPS) and obstruction of justice related to the falsification of the tanker’s Oil Record Book, which is a required log.

The guilty pleas were entered in federal court in New Orleans before Chief U.S. District Court Judge Nannette Jolivette Brown. If the court approves the plea agreement, the companies will be fined a total of $2 million and serve four years of probation. Separate charges have been filed against Captain Abdurrahman Korkmaz, a Turkish national who was the ship’s master.

The criminal case stems from the report of a crew member who, on Jan. 11, 2023, contacted the Coast Guard in New Orleans, which was the next port-of-call, and shared a video showing oil being pumped overboard and trailing behind the tanker. When the ship arrived in New Orleans two weeks later, this individual and another crew member blew the whistle and provided evidence to the Coast Guard. Video and photographic images were filed in court today by the prosecutors.

“Deliberate pollution from ships, intentional falsification of records and obstruction of justice are serious environmental crimes that will be vigorously prosecuted to the full extent of the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Maritime laws regulating pollution from ships are intended to ensure that ocean waters are not used as a dumping ground.”

“This case involved deceit and willful pollution, and this prosecution is intended to hold both the corporations and individuals accountable,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Criminal prosecutions are needed to deter deliberate efforts to circumvent our Nation’s anti-pollution laws. Importantly, $500,000 of the criminal penalty will go toward environmental protection of the marine environment in our area.”

“Today's outcome sends a powerful message: those who falsify logs and take deliberate actions to conceal pollution will face significant consequences,” said Captain Greg Callaghan, Deputy Commander of U.S. Coast Guard (USCG) Sector New Orleans. “The Coast Guard and our partners remain steadfast in our shared commitment to safeguarding our waters and holding accountable those who threaten our marine ecosystems. We encourage individuals to continue reporting any suspicious activities, as each report plays a crucial role in protecting the marine environment."

“It is long past time for the maritime industry to meet its obligations under international law and stop illegal pollution from ships,” said Assistant Administrator David M. Uhlmann of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “Illegal ocean dumping and falsifying records to conceal those violations will not be tolerated by EPA and our federal law enforcement partners.” 

The falsified logs, presented to the Coast Guard during its inspection, were intended to conceal the fact that the crew had dumped oil-contaminated waste overboard on the voyage to New Orleans and was not complying with MARPOL Annex I, an international treaty regulating oil pollution from ships. According to court documents, the ship’s master ordered crew members to pump overboard from the residual oil tank, which contained oily waste. A portable pump placed inside the tank and connected to a long flexible hose was used to discharge directly into the ocean without any required pollution prevention equipment or monitoring. The waste oil, including sludge, originated in the engine room and had been improperly transferred into the residual oil tank on the deck of the ship by a prior crew. Senior managers at Prive Shipping were aware that the oil-contaminated waste remained in the tank and were informed by the ship’s master that it had been dumped overboard.

The proposed $2 million criminal penalty includes $500,000 in organizational community service payments that will fund various maritime environmental projects in the Eastern District of Louisiana. Those projects will be managed by the congressionally established National Fish & Wildlife Foundation. The court also has authority to award up to $500,000, half of the APPS portion of the fine, to the whistleblowers that provided evidence leading to conviction.

Prive Overseas Marine is based in Dubai and Prive Shipping is based in Turkey. The corporations were charged with four felonies: conspiracy, an APPS violation and two counts of obstruction of justice. Captain Korkmaz was charged with two counts: a violation of APPS and obstructing the Coast Guard’s inspection of the ship.

The Coast Guard Investigative Service and the EPA Criminal Investigations Division investigated the case with assistance from USCG Sector New Orleans.

Senior Litigation Counsel Richard A. Udell and Senior Trial Attorney Ryan Connors of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorneys G. Dall Kammer and Christine M. Calogero for the Eastern District of Louisiana are prosecuting the case.

Francis James Acebo Jr., age 34, of Arapaho, Wyoming, was sentenced to life imprisonment for first-degree murder and causing death with a firearm; followed by a 10-year term of imprisonment for discharging a firearm during and in relation to a crime of violence. U.S. District Court Judge Alan B. Johnson imposed the sentence on May 16.

Acebo was convicted by a federal jury on Feb. 16. The trial lasted five days and was held in Cheyenne before Judge Johnson. The defendant had been indicted by a grand jury and pleaded not guilty to the charges in May 2023.

According to evidence presented at trial and witnesses to the crime, Acebo entered the victim’s Riverton residence in the early morning of Mar. 25, 2023, and shot the victim in the back of the head. He fled the scene and later turned himself in to the Fremont County Sheriff’s Office.

“The successful prosecution of homicides and other violent crimes on the Wind River Indian Reservation is one of our highest priorities,” said U.S. Attorney Nicholas Vassallo. “Mr. Acebo’s life sentence is the result of a well-coordinated investigation by the FBI and the Bureau of Indian Affairs and this office’s commitment to obtaining a first-degree murder conviction.”

“FBI Denver takes seriously all major crimes on the Wind River Indian Reservation, with murders like this one getting our full attention,” said Special Agent in Charge Mark Michalek. “This sentence demonstrates the FBI's steadfast commitment to working with our tribal partners to solve MMIP cases and  promote public safety on reservations across the country.”

Special agents with the Bureau of Indian Affairs and the FBI investigated this crime. Assistant U.S. Attorneys Kerry J. Jacobson and Timothy J. Forwood prosecuted the case.

Case No. 23-CR-00081

Last week, in recognition of National Police Week, Attorney General Merrick B. Garland, Deputy Attorney General Lisa Monaco, and Acting Associate Attorney General Benjamin C. Mizer joined law enforcement partners to honor those who made the ultimate sacrifice to our nation.

According to the FBI’s most recent statistics, 60 law enforcement officers were killed in the line of duty in 2023. As of April 29, 19 law enforcement officers have lost their lives in the line of duty this year.

In 1962, President John F. Kennedy proclaimed May 15 as National Peace Officers Memorial Day and the week in which May 15 falls as National Police Week. Established by a joint resolution of Congress in 1962, National Police Week is a collaborative effort of many organizations dedicated to honoring the service and sacrifice of America’s law enforcement community. This year, police week ran May 12 – 18.

Attorney General Garland, Deputy Attorney General Monaco, and Acting Associate Attorney General Mizer began the week by visiting the National Law Enforcement Memorial and laying a wreath in honor of the men and women who have died in the line of duty.

Throughout the week, to recognize not only Justice Department employees who died in the line of duty but also their surviving family members and friends, Attorney General Garland and Deputy Attorney General Monaco attended memorial services for the Justice Department’s four law enforcement components: the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), U.S. Marshals Service (USMS), and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Principal Associate Deputy Attorney General Marshall Miller also delivered remarks at a memorial service to honor fallen federal correctional officers from the Federal Bureau of Prisons, during National Correctional Officers Week, which ran May 5 – 11.

Attorney General Garland and Deputy Attorney General Monaco also attended the Fraternal Order of Police (FOP)’s National Peace Officers’ Memorial Service. Additionally, Attorney General Garland attended the National Law Enforcement Officers Memorial Fund’s annual candlelight vigil honoring the officers who lost their lives over the past year, where the Attorney General joined senior officials to read the names of the fallen.

On Thursday, Attorney General Garland, Deputy Attorney General Monaco, and Acting Associate Attorney General Mizer also convened the Justice Department’s law enforcement components and external law enforcement associations with whom they regularly meet to discuss the Justice Department’s continued partnership with state and local law enforcement.

The Justice Department today announced an important new resource for prosecutors. The Framework for Prosecutors to Strengthen Our National Response to Sexual Assault and Domestic Violence Involving Adult Victims, written by prosecutors for prosecutors, sets out five principles that, if implemented, will lead to better outcomes for victims, safer communities, and greater accountability for perpetrators of sexual assault and domestic violence.

“When investigating and prosecuting the heinous crimes of sexual assault and domestic violence, prosecutors must pursue justice in a manner that does not retraumatize victims and survivors,” said Attorney General Merrick B. Garland. “This framework for prosecutors reflects the Justice Department’s commitment to strengthening our collective response to sexual assault and domestic violence, and to setting the standard for how prosecutors should respond to victims and survivors.”

Declinations of meritorious allegations may result from misconceptions about how crimes involving sexual assault and domestic violence are committed and reported, how victims give their accounts, and the evidence required to prove their accounts beyond a reasonable doubt. This guide addresses that phenomenon by discussing: (1) relying on the evidentiary value of the victim’s account to frame the investigation; (2) the fundamental importance of prosecutors, investigators, and victim specialists working together and meeting with victims; (3) using the law and evidentiary rules effectively; (4) being thoughtful about what justice and accountability look like; and (5) sustaining a productive, healthy, and committed workforce by redefining success– all of which are rooted in a prosecutor’s primary obligation to seek the truth and uphold the U.S. Constitution and the rule of law.

“Achieving justice for victims and survivors of sexual assault and domestic violence is one of the Department’s highest priorities,” said Deputy Attorney General Lisa Monaco. “This guide provides a framework that we encourage prosecutors throughout the country to use when evaluating, investigating, and prosecuting these critically important cases.”

More than 120 state, Tribal, military, and federal prosecutors, as well as advocates, academics, and investigators from an array of jurisdictions were consulted in developing this guide. The principles set forth in this guide are designed to encourage and assist prosecutors of all levels of experience to handle cases involving sexual assault and domestic violence. This guide further serves as a complement to the Justice Department’s 2022 updated guidance on Improving Law Enforcement Response to Sexual Assault and Domestic Violence by Identifying and Preventing Gender Bias.

“The Justice Department is committed to strengthening the prosecution of sexual assault and domestic violence crimes and ensuring a trauma-informed approach to working with victims,” said Acting Associate Attorney General Benjamin C. Mizer. “This guide provides a practical, accessible framework that prosecutors can use when evaluating, investigating, and prosecuting these crimes. We thank everyone who contributed to this guide for sharing their expertise and experience and for their years of dedicated work to address and combat sexual assault and domestic violence.”

“The framework announced today reaffirms our commitment to expanding access to justice for all survivors, who deserve respect and the right to be heard,” said Director Rosie Hidalgo of the Justice Department’s Office on Violence Against Women (OVW). “Enhancing the prosecution response to sexual assault and domestic violence in a trauma-informed manner is a key piece in ending gender-based violence, as part of a broader coordinated community response that includes services and support for survivors, and can have a real, immediate impact on the safety of survivors and entire communities.”

In conjunction with this guide, OVW launched a new webpage with resources designed to assist prosecutors in implementing the guide and its principles.

OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW funds national training and technical assistance and undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.

An Arizona man pleaded guilty on Friday to two counts of assisting in the preparation of false tax returns for individuals who used an abusive-trust tax shelter to underreport their income and tax liabilities.

According to court documents and statements made in court, from 2017 to 2023, Kent Ellsworth operated Ellsworth Stauffer P.C., a return preparation business. During that time, Ellsworth participated in a scheme to defraud the IRS that involved the promotion, sale and implementation of a fraudulent tax shelter. Ellsworth participated by preparing and filing over 500 false tax returns for approximately 60 clients nationwide who used the tax shelter to conceal income from the IRS and not pay tax. Ellsworth intentionally caused more than $60 million in income to be fraudulently sheltered from the IRS, which resulted in a tax loss to the IRS of approximately $17 million.

Ellsworth prepared the false tax returns to further the abusive-trust tax shelter scheme carried out by others. Clients who purchased the tax shelter – most of whom were successful business owners – were directed to assign or “donate” nearly all of their income to sham trusts and a so-called “private family foundation” to create the illusion that the income was not theirs. However, the sham trusts and foundations were nothing more than bank accounts designed to hold funds the clients earned and continued to control.

To carry out the scheme, Ellsworth was taught how to prepare tax returns utilizing the scheme’s fraudulent methods. He was instructed to report all income assigned to a sham trust as income of the trust and to offset that income by deducting all expenses paid for by the trust, including the clients’ personal living expenses. Ellsworth was paid fees for preparing the returns by the clients participating in the tax shelter.

Ellsworth is scheduled to be sentenced on Aug. 14. He faces a maximum penalty of three years in prison for each count of preparing and filing false tax returns. Ellsworth also faces a maximum fine of $250,000, a period of supervised release and the costs of prosecution for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Special Agent in Charge Andy Tsui of IRS Criminal Investigation’s (IRS-CI) Denver Field Office made the announcement.

IRS-CI is investigating the case.

Trial Attorneys Amanda R. Scott and Lauren K. Pope and Senior Litigation Counsel Corey J. Smith of the Tax Division are prosecuting the case.

A former Massachusetts home builder pleaded guilty yesterday to conspiring to defraud the United States and creating false documents to help one of his clients obtain a mortgage.

According to court documents and statements made in court, Kent Pecoy owned and operated Kent Pecoy & Sons, Construction Inc., a West Springfield-based commercial and luxury home construction company.

From 2009 through 2016, Pecoy conspired with others to conceal income from the IRS by dealing in cash. Specifically, Pecoy received $1,116,900 in cash payments from Kevin Kennedy, who was sentenced to prison last month for tax crimes, for the purchase and construction of custom-built homes in East Longmeadow and on Cape Cod. Pecoy did not deposit most of the cash into the businesses’ bank accounts, but rather distributed the cash directly to vendors and subcontractors. For example, Pecoy used approximately $135,700 of that cash to pay subcontractors under the table for work performed at the Cape Cod home. Pecoy also created and maintained separate ledgers documenting Kennedy’s cash payments, created and maintained false contracts and cover sheets and created false entries in the company’s accounting system to conceal the cash payments.

For the payments Pecoy did deposit, he deposited the cash in amounts less than $10,000 to avoid the filing of currency transaction reports.

For the East Longmeadow home, in January 2010, Kennedy and Pecoy created two contracts, one with the agreed-upon purchase price and one with a deflated purchase price. The latter contract listed a purchase price that was $160,000 lower than the contract price, which was the amount Kennedy had paid to Pecoy in cash as a down payment for the home. Kennedy then submitted the deflated home purchase contract to the bank to induce it to provide him a mortgage for part of the East Longmeadow home.

In total, Pecoy caused a loss to the IRS of more than $250,000.

Pecoy also obstructed the IRS after it opened an investigation. The IRS served a grand jury subpoena on Pecoy, to which he responded. However, when IRS special agents executed a search warrant at Pecoy’s construction business, they found dozens of documents responsive to the subpoena that Pecoy had not turned over to the government even though he was legally required to have done so.

Pecoy is scheduled to be sentenced on Aug. 20. He faces a maximum penalty of five years in prison for conspiring to defraud the United States and 30 years in prison for making a false statement to a bank. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts made the announcement.

IRS Criminal Investigation is investigating the case.

Assistant Chief Eric B. Powers of the Tax Division and Assistant U.S. Attorney Neil Desroches for the District of Massachusetts are prosecuting the case.

David DePape, 44, of Richmond, California, was sentenced today to 360 months in prison and five years of supervised release, following his conviction on assault and attempted kidnapping charges in connection with his Oct. 28, 2022, intrusion into the home of Speaker Emerita Nancy Pelosi and her husband, Paul Pelosi.

“This sentence is a warning: violence against those who serve the public and their families will not be tolerated,” said Attorney General Merrick B. Garland. “The Justice Department will aggressively prosecute those who target public servants and their families with violence. In a democracy, people vote, argue, and debate to achieve the policy outcome they desire. But the promise of democracy is that people will not employ violence to affect that outcome.”

“David DePape, when he planned his attempted kidnapping, claimed he intended to punish the Speaker Emerita and teach Congress as a whole a lesson,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “He then violently assaulted Mr. Pelosi. Today’s sentence is a stern reminder to those who pursue violence against public officials and institutions that significant punishment will follow. I want to thank the FBI, the San Francisco Police Department, the U.S. Capitol Police, and the members of my prosecution team — including Helen Gilbert, Laura Vartain, and Maddie Wachs — for bringing this matter to a swift and decisive conclusion. We hope that the conclusion of the federal case brings a measure of healing to Mr. Pelosi and his family.”

“Today’s sentencing of David DePape to a significant prison term sends a clear message that violence and intimidation have no place in our community or our political discourse,” said Special Agent in Charge Robert Tripp of the FBI San Francisco Field Office. “DePape's attack, fueled by misguided ideology, underscores the dangers posed by extremist beliefs. The FBI is committed to protecting all citizens and ensuring that our democracy remains strong and resilient against those who seek to harm it.”

The evidence at trial established that, weeks before the attack, DePape targeted Nancy Pelosi, who was then Speaker of the U.S. House of Representatives, and collected personal information about her, including her home address. DePape kept the information in a computer file he labeled “favorite politicians.” DePape intended to kidnap the then-Speaker, hold her hostage, and break her kneecaps. 

The evidence at trial demonstrated that on the night of the assault, DePape used public transportation to travel from the East Bay to San Francisco while carrying two backpacks that contained a hammer, sledgehammer, duct tape, rope, zip ties, and electronic items, among other items. After arriving at the Pelosi residence, DePape used the hammer to break the window of a glass door and enter the home. Then-Speaker Pelosi was not home and her husband, Paul Pelosi, was sleeping on the third floor of the home. DePape roamed the home until he found Paul Pelosi in the third-floor bedroom. 

The trial evidence demonstrated that DePape woke Paul Pelosi and, while standing three to four feet from him holding the hammer and restraints, made various threats including, “I will take you out.” Paul Pelosi managed to walk to his bathroom and call 9-1-1, during which he carefully used language to alert the emergency operator to the situation without agitating DePape. 

Paul Pelosi convinced the defendant to go downstairs to the first floor and continued talking to DePape. When the police arrived, Paul Pelosi opened the door and the police ordered DePape to drop the hammer he was holding. Instead, DePape struck Paul Pelosi three times with full force, fracturing his skull. The responding officers immediately tackled DePape and took him into custody. 

On Nov. 9, 2022, a federal grand jury indicted DePape, charging him with one count of assault upon an immediate family member of a U.S. official with the intent to impede, intimidate, or interfere with the official while engaged in the performance of official duties or with intent retaliate against the official on account of the performance of official duties, and one count of attempted kidnapping of a U.S. official on account of the performance of official duties. A jury convicted DePape of both charges.

DePape will receive credit for the little over 18 months that he has been in custody since his crime.

The FBI San Francisco Field Office, U.S. Capitol Police, and San Francisco Police Department are investigating the case.

The U.S. Attorney’s Office for the Northern District of California’s National Security and Cyber Section is prosecuting the case.

The Justice Department today announced that the Attorney General has submitted to the Federal Register a notice of proposed rulemaking initiating a formal rulemaking process to consider moving marijuana from a schedule I to schedule III drug under the Controlled Substances Act (CSA).

Marijuana has been classified as a schedule I drug since Congress enacted the CSA in 1970. On Oct. 6, 2022, President Biden asked the Attorney General and the Secretary of Health and Human Services (HHS) to launch a scientific review of how marijuana is scheduled under federal law. After receiving HHS’s recommendations last August, the Attorney General sought the legal advice of the Justice Department’s Office of Legal Counsel (OLC) on questions relevant to this rulemaking. In light of HHS’ medical and scientific determinations, and OLC’s legal advice, the Attorney General exercised his authority under the law to initiate the rulemaking process to transfer marijuana to schedule III.

The rescheduling of a controlled substance follows a formal rulemaking procedure that requires notice to the public, and an opportunity for comment and an administrative hearing. This proposal starts the process, where the Drug Enforcement Administration will gather and consider information and views submitted by the public, in order to make a determination about the appropriate schedule. During that process, and until a final rule is published, marijuana remains a schedule I controlled substance.

The notice of proposed rulemaking submitted by the Department can be viewed here, and the OLC memorandum regarding questions related to the potential rescheduling of marijuana can be found here.

Learn more about the rulemaking process here.

The Justice Department announced today that the Shelby County, Tennessee, District Attorney General (DA) has agreed to cease prosecution of individuals living with human immunodeficiency virus (HIV) under Tennessee’s aggravated prostitution law. The DA will also adopt reforms to correct discrimination against people living with HIV who were subjected to discriminatory and harsher penalties under the law.

This agreement resolves the Justice Department’s finding that the Shelby County DA violated the Americans with Disabilities Act (ADA) by enforcing Tennessee’s aggravated prostitution law that imposed enhanced criminal penalties based on a person’s HIV status. The prosecutions were carried out without consideration of risk of transmitting HIV, and the harsher penalties included being charged with a felony (as opposed to a misdemeanor) and being required to register for life as a sex offender.

“Living with HIV is not a crime and the continued enforcement of laws that criminalize a person based on their HIV status, regardless of risk, perpetuate bias, stereotypes and ignorance about HIV,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.  “We are pleased that Shelby County District Attorney has agreed to cease enforcement of this discriminatory law, and that future prosecution decisions will reflect the significant advances made in HIV prevention and treatment, consistent with the ADA.”

Under this agreement, the DA will not prosecute individuals under the aggravated prostitution law or for violations of the sex offender registry requirements that have resulted from prior convictions under that law. The DA will also notify anyone eligible of their ability to petition for vacatur of their convictions, termination of the remainder of their sentences and elimination of fees owed. 

This agreement also requires the Shelby County DA to adopt policies and train prosecuting attorneys on the ADA’s anti-discrimination requirements relating to HIV, a disability under the ADA. Under the agreement, the DA will also report its compliance with the agreement to the department.

The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov.

A national of the Dominican Republic was sentenced yesterday to 15 years and four months in prison for his role in an international conspiracy to distribute 385 kilograms of cocaine for unlawful importation into the United States.

According to court documents and evidence presented at trial, from October 2016 through May 2019, Cesar Gomez Almonte, 51, participated in a drug trafficking network based in the Dominican Republic that transported cocaine from South America, through the Caribbean, to the United States. The drug trafficking network used vessels, such as sailing yachts and sport fishing boats, to transport the cocaine, often stopping in various Caribbean ports while transporting the cocaine to give a cover of legitimacy to each voyage. One of these vessels, the Casablanca, was interdicted by the U.S. Customs and Border Protection’s Marine Interdiction Unit in November 2018 as it entered U.S. waters near Key Biscayne, Florida. Officers boarded and searched the Casablanca, seizing more than 327 kilograms of cocaine.          

Gomez had several roles in the conspiracy. He brokered the use of the Casablanca by another drug trafficking network to send cocaine directly to the United States, and was involved in locating and purchasing vessels for use by the drug trafficking network to transport cocaine. Additionally, Gomez attempted to change the ownership of one of the network’s boats from one straw purchaser to another to disguise the true owners and possessors of the boat, which was used in a prior voyage to transport approximately 500 kilograms of cocaine. 

A federal jury in the District of Columbia convicted Gomez in November 2023 of conspiracy to import five kilograms or more of cocaine into the United States.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI); and Administrator Anne Milgram of the Drug Enforcement Administration (DEA) made the announcement.

The case is supported by the Organized Crime and Drug Enforcement Task Forces (OCDETF) and HSI’s El Dorado Task Force.

HSI New York and DEA New York investigated the case.

Acting Assistant Deputy Chief Melanie L. Alsworth and Trial Attorneys Samantha Thompson and Janet Turnbull of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case. 

The Justice Department’s Office of International Affairs provided significant assistance. The Justice Department thanks authorities in the Dominican Republic for their assistance in the investigation.

Secretary of Homeland Security Alejandro N. Mayorkas and Attorney General Merrick B. Garland today announced a new Recent Arrivals (RA) Docket process to more expeditiously resolve immigration cases of certain noncitizen single adults who attempt to cross irregularly between ports of entry at the Southwest border. This effort will allow Department of Homeland Security (DHS) and Justice Department to more swiftly impose consequences, including removal, on those without a legal basis to remain in the United States and to more swiftly grant immigration relief or protections to noncitizens with valid claims. The Justice Department also submitted to the Federal Register a final rule to promote efficient case and docket management in immigration proceedings.

“Today, we are instituting with the Department of Justice a process to accelerate asylum proceedings so that individuals who do not qualify for relief can be removed more quickly and those who do qualify can achieve protection sooner,” said Secretary of Homeland Security Mayorkas. “This administrative step is no substitute for the sweeping and much-needed changes that the bipartisan Senate bill would deliver, but in the absence of Congressional action we will do what we can to most effectively enforce the law and discourage irregular migration.”

“The Justice Department’s immigration courts are committed to the just and efficient enforcement of the immigration laws,” said Attorney General Garland. “These measures will advance that mission by helping to ensure that immigration cases are adjudicated promptly and fairly.” 

In our current, overwhelmed immigration system, noncitizens arriving at the U.S. Southwest border often wait years before receiving a final decision in an immigration court proceeding. Insufficient resources, including insufficient immigration judges and attorneys, has impeded the swift resolution of claims, and extended the length of the immigration court process. 

Under the RA Docket process, DHS will place certain noncitizen single adults on the RA Docket, and the Executive Office for Immigration Review adjudicators will prioritize the adjudication of these cases. The RA Docket will operate in five cities: Atlanta, Boston, Chicago, Los Angeles, and New York City. Immigration judges will aim to render final decisions within 180 days, though the time to decision in any particular case will remain subject to case-specific circumstances and due process guarantees, including allowing time for noncitizens to seek representation where needed.

In order to support these efforts, today the Justice Department also submitted to the Federal Register a final rule titled, Efficient Case and Docket Management in Immigration Proceedings. The rule codifies procedures and standards for immigration adjudicators across the country to manage their dockets and resolve cases efficiently. The rule allows adjudicators to prioritize cases that are ready to be resolved promptly, enabling them to address their caseloads more efficiently and quickly. This rule is an important step the Justice Department is taking to promote the efficient, expeditious, and fair adjudication of immigration cases, allocate limited resources more efficiently, and protect due process for parties in immigration court.

Lastly, the Departments continue to call on Congress to take up and pass the Senate’s bipartisan border security legislation, which if passed would provide DHS and the Justice Department with additional authorities and resources that are critically needed. These resources include more immigration judges, additional asylum officers and support staff, and needed authorities to more quickly adjudicate asylum cases of those arriving at our border, including by granting protection to those with valid claims, and removing those without a lawful basis to remain. Congress should take up and pass this legislation to fix our broken immigration system.

The Justice Department announced today that it secured a settlement agreement with Maxim Healthcare Services (Maxim), a home healthcare company based in Columbia, Maryland, with operations in 35 states. The agreement resolves the department’s determination that Maxim violated the Immigration and Nationality Act (INA) at its Gardena, California, office by discriminating against a non-U.S. citizen worker when it rejected her valid document showing her permission to work and requiring lawful permanent residents working for the company to prove their continued permission to work even though it was unnecessary.

“Employers cannot treat employees differently based on their citizenship status when verifying their permission to work,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department is committed to ensuring that employers do not deny workers equal treatment in the workplace, whether in hiring, checking employees’ permission to work or otherwise.”

After opening an investigation based on a worker’s complaint, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) concluded that Maxim improperly rejected the worker’s valid document based on her citizenship status. Specifically, the department determined that the company rejected the worker’s employment authorization document (EAD) because the last name on it was different from the last name on her driver’s license and Social Security card, even though the company accepted documents from U.S. citizens under similar circumstances and believed that the EAD reasonably appeared to be genuine and to relate to the worker, which is all that the Department of Homeland Security rules require.

The investigation also determined that Maxim routinely required lawful permanent residents to present unnecessary documentation when their Permanent Resident Cards expired, which is not required by law. The INA’s anti-discrimination provision prohibits employers from rejecting valid documents or asking for specific or unnecessary documents because of a worker’s citizenship or immigration status. If a lawful permanent resident provides an unexpired Permanent Resident Card to prove their permission to work, employers are not permitted to request new documentation if the Permanent Resident Card later expires.

Under the terms of the settlement, Maxim will pay a civil penalty to the United States and lost wages to the affected worker, train its employees on the INA’s anti-discrimination requirements, revise its employment policies and processes and be subject to monitoring by the department.

IER is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee, unfair documentary practices and retaliation and intimidation. 

Find more information about how employers can avoid discrimination when verifying someone’s permission to work on IER’s website. More information on how employers may handle discrepancies in the names that appear on employees’ Form I-9 documents is available as well. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify) or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a live webinar; watch an on-demand presentation or visit IER’s English and Spanish websites. Subscribe for email updates from IER.

El Departamento de Justicia ha anunciado hoy que ha llegado a un acuerdo conciliatorio con Maxim Healthcare Services (Maxim), una empresa de atención médica domiciliaria con sede en Columbia, Maryland, con operaciones en 35 estados. El acuerdo resuelve la determinación del Departamento que Maxim infringió la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) en su oficina de Gardena, California al discriminar a una trabajadora no ciudadana de los EE. UU. cuando rechazó su documento válido que mostraba su permiso para trabajar y exigir que los residentes legales permanentes que trabajan para la empresa demostraran su permiso continuo para trabajar, aunque fuera innecesario.

«Los empleadores no pueden tratar a los empleados de una forma diferente en función de su estatus de ciudadanía a la hora de verificar su permiso para trabajar», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento se compromete a garantizar que los empleadores no nieguen a los trabajadores el trato igualitario en el lugar de trabajo, ya sea en la contratación, la comprobación del permiso de trabajo de los empleados o de otro modo».

Después de iniciar una investigación basada en la queja de una trabajadora, la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés,) de la División de Derechos Civiles, concluyó que Maxim rechazó indebidamente el documento válido de la trabajadora en función de su estatus de ciudadanía. En concreto, el Departamento determinó que la compañía rechazó el Documento de Autorización para Trabajar (EAD, por sus siglas en inglés) de la trabajadora porque el apellido que figuraba en él era diferente del apellido que figura en su licencia de conducir y tarjeta de Seguro Social, a pesar de que la compañía aceptó documentos de ciudadanos de los EE. UU. en circunstancias similares y creían que el EAD parecía razonablemente ser genuino y estar relacionado con el trabajador, que es todo lo que las Normas del Departamento de Seguridad Nacional requieren.

La investigación también determinó que Maxim exigía, de forma rutinaria, que los residentes permanentes legales presentaran documentación innecesaria cuando sus tarjetas de residencia permanente vencieran, lo cual no es requerido por ley. La disposición antidiscriminatoria de la INA prohíbe que los empleadores rechacen documentos válidos o que pidan documentos innecesarios por motivos del estatus migratorio o ciudadanía de un trabajador. Si un residente permanente legal proporciona una tarjeta de residencia permanente en vigor para demostrar su permiso para trabajar, a los empleadores no se les permite solicitar documentación nueva si posteriormente, la tarjeta de residencia permanente se vence.

Conforme los términos del acuerdo, Maxim pagará una sanción civil a los Estados Unidos y el salario perdido al trabajador afectado, capacitará a sus empleados en cuanto a los requisitos antidiscriminatorios de la INA, revisará sus políticas de empleo y se someterá a la supervisión por parte del Departamento.

La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación. 

Puede obtener más información sobre cómo los empleadores pueden evitar la discriminar al verificar el permiso para trabajar de alguien en el sitio web de la IER.  Más información sobre cómo los empleadores pueden manejar las discrepancias en los nombres que aparecen en los documentos del Formulario I-9 de los empleados está disponible también. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; visualizar una presentación a la carta o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico de la IER.

United States Attorney Susan Lehr announced that Spenser Ware, 35, formerly of Lincoln, Nebraska, was sentenced on May 14, 2024, in federal court in Lincoln for possession of firearms and ammunition by a prohibited person. Senior United States District Judge Joseph F. Bataillon sentenced Ware to 42 months’ imprisonment. There is no parole in the federal system. After Ware’s release from prison, he will begin a 3-year term of supervised release.

In October of 2023, investigators received information that Ware was building firearms and selling them to individuals who could not legally purchase them.  Ware owned his own security company at the time. Investigators executed a search warrant at Ware’s residence where they found five firearms, several of which were non-serialized “ghost guns” with short barrels. Investigators also found 12 receivers, high-capacity magazines, body armor, more than 1800 rounds of ammunition in different calibers, holsters, firearm assembly equipment, and magazines. Ware admitted that he ordered the gun parts and assembled the firearms himself. Investigators searched his phone and found multiple images of firearms dating back to 2021. An agent for the Bureau of Alcohol, Tobacco, Firearms, and Explosives examined the firearms and ammunition and found that they were manufactured outside the State of Nebraska.

Ware has felony convictions out of Florida preventing him from possessing firearms.

This case was investigated by the Lincoln Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

Through INTERPOL Washington’s Project TERMINUS and U.S. Department of State Counter Terrorism funding, a team from INTERPOL Washington’s Border Security Division traveled to Bogotá, Colombia to further ongoing support efforts under Project TERMINUS. In addition to discussing available Project TERMINUS solutions to enhance screening of travelers against INTERPOL databases and enhance critical day-to-day operations of National Central Bureau Bogotá, the team delivered computer equipment and two custom software solutions developed by INTERPOL Washington, the Stolen and Lost Travel Documents (SLTD) Workbench and the Stolen Motor Vehicles (SMV) workbench. The two solutions empower INTERPOL member countries to quickly and easily share, manage, and extend vital information pertaining to SLTD and SMV in the INTERPOL databases.

“Colombia has achieved a significant milestone, becoming the first INTERPOL partner nation to implement the SLTD Workbench and SMV Workbench solutions,” announced INTERPOL Washington Border Security Division Deputy Assistant Director Keith Hood, emphasizing the country's pioneering role in enhancing global security. “This is thanks to NCB’s Bogota’s willingness to lean forward in the fight to make our international borders more secure.”

A team from INTERPOL Washington meets with Colombian police and security officials in Bogota during the Project TERMINUS support efforts.

Project TERMINUS seeks to establish or enhance INTERPOL screening and record submission by INTERPOL member countries through computer hardware and custom software solutions that ease service adoption and enhance the data's usability and effectiveness. 

Beyond its primary capacity-building objective, Project TERMINUS assists the broader U.S. government law enforcement mission by connecting U.S. government law enforcement agencies to partner nation entities, benefiting the partner nation and the global law enforcement effort. In Bogota, Project TERMINUS introduced the U.S. Customs and Border Protection (CBP) Acting Attaché to NCB Bogotá, including him in meetings with NCB Bogotá and Columbia Immigration. The CBP Attaché participated in detailed discussions with NCB Bogota regarding Colombia’s current capabilities, some of its challenges, and opportunities for improvement.

A former sales employee of a manufacturer and distributor of football helmets and other sports equipment pleaded guilty today for his role in three separate conspiracies — two conspiracies to rig bids in violation of the Sherman Act and one conspiracy to commit wire fraud — all related to sports equipment for schools located in Mississippi and elsewhere. At least 100 schools throughout Mississippi and elsewhere were victims of these conspiracies.

According to court documents, Charles Ferrell Trimm conspired with two unnamed sports equipment distributors and numerous individuals to rig bids from August 2020 through November 2022 and from May 2021 to February 2023, respectively. Trimm and his co-conspirators agreed to submit complementary bids to schools located in Mississippi and elsewhere in order to obtain procurements for school sports equipment and related services. Trimm also conspired with unnamed co-conspirators to commit wire fraud by submitting false bids to schools located in Mississippi and elsewhere from May 2016 to July 2023. As a part of this scheme, Trimm and others used an unidentified individual’s identity without authorization, including by forging the individual’s signature.

“The charged criminal schemes harmed public schools by subverting their procurement processes and providing the false appearance of competition for precious taxpayer dollars,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division and its partners will continue to protect taxpayers and students across the country by stopping bid rigging and fraud that targets government procurements wherever we find it, including at the state and local levels.”

“The conspirators took advantage of schools in Mississippi by rigging bids to affect the prices schools paid for sports equipment,” said U.S. Attorney Todd Gee for the Southern District of Mississippi. “The Justice Department is committed to prosecuting these types of anti-competitive practices and ensuring that schools and other buyers can obtain goods and services from a fair and open marketplace.”

“Charles Trimm and his co-conspirators’ actions fraudulently deprived public schools of valuable resources to support students,” said Acting Special Agent in Charge Rebecca Day of the FBI Jackson Field Office. “The FBI is committed to working with our partners to hold individuals like Trimm accountable for their actions.”

Trimm faces a maximum penalty of 10 years in prison and a $1 million criminal fine for the Sherman Act violation. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime. Trimm faces a maximum penalty of 20 years in prison, a criminal fine and court-ordered restitution for the fraud charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Antitrust Division’s Washington Criminal Section and the FBI investigated this case as part of an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the school sports equipment industry.

Trial Attorneys Jill Rogowski, Laura Butte, Marc Hedrich and Evan Binder of the Justice Department’s Antitrust Division prosecuted the case.

In November 2019, the Justice Department created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force.

A Hamilton County, Ohio, man was sentenced to prison today for violating the Clean Air Act through an aftermarket scheme to disable the emissions control systems of diesel trucks.

Davis Owens, 34, of Cleves, was sentenced to serve 30 days in prison, seven months of home confinement and one year of supervised release. He had previously pleaded guilty to one count of aiding and abetting the tampering of a monitoring device required under the Clean Air Act.

According to court documents, Owens was the co-owner of Holderdown Performance and owner of Cincy Diesel Performance. In 2020, Owens entered a Consent Agreement and Final Order (CAFO) with the Environmental Protection Agency (EPA) regarding allegations that he and Holderdown had knowingly worked to bypass or “defeat” components that controlled emissions on heavy duty diesel truck engines. Research has shown that bypassing a vehicle’s emissions components can increase particulate matter 40 times, nitrogen oxides 310 times, carbon monoxide 120 times and non-methane hydrocarbons 1,100 times.

Owens paid a $7,500 civil penalty as part of the CAFO and agreed that neither he nor Cincy Diesel Performance would manufacture, sell or install defeat devices. Investigation revealed that Owens and Cincy Diesel Performance continued to sell and install defeat devices as well as emissions deleting computer software until February 2022.

Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Kenneth L. Parker for the Southern District of Ohio made the announcement.

The EPA’s Criminal Investigation Division and the Ohio Attorney General’s Bureau of Criminal Investigations investigated the case.

Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case.

A plea agreement was unsealed today in which an Ohio man pleaded guilty to creating and distributing videos depicting acts of extreme violence and sexual abuse against monkeys.

Ronald P. Bedra, of Etna, pleaded guilty to conspiring to create and distribute so-called “animal crush” videos. According to court documents, Bedra conspired with others to create and distribute the videos which depicted acts of sadistic violence against baby and adult monkeys, including having digits and limbs severed and being forcibly sodomized with a heated screwdriver.

The conspirators used encrypted chat apps to direct money to individuals in Indonesia willing to commit the requested acts of torture on camera. Bedra also mailed a thumb drive containing 64 videos of monkey torture to a co-conspirator in Wisconsin.

Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Kenneth L. Parker for the Southern District of Ohio made the announcement.

The U.S. Fish and Wildlife Service and FBI investigated the case.

Trial Attorney Mark Romley and Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Nicole Pakiz for the Southern District of Ohio are prosecuting the case.

The Justice Department, on behalf of the Department of the Interior, filed a motion to intervene today in the Muscogee (Creek) Nation’s lawsuit against the City of Tulsa, Oklahoma, and its mayor, chief of police and city attorney in the U.S. District Court for the Northern District of Oklahoma. The Justice Department also filed a proposed complaint against Tulsa, alleging that it has unlawfully asserted criminal jurisdiction against tribal members within the Muscogee (Creek) Reservation.

The Muscogee (Creek) Nation filed its complaint against Tulsa on Nov. 11, 2023, after Tulsa continued to prosecute tribal members within the reservation for alleged violations of Tulsa’s traffic ordinances. The city has used those court prosecutions to argue it has criminal jurisdiction over Indians in Indian country.

The Justice Department’s motion to intervene and proposed complaint argue that Tulsa’s assertion of jurisdiction violates fundamental principles of federal Indian law that are rooted in the Constitution and were reaffirmed in the U.S. Supreme Court’s 2020 decision in McGirt v. Oklahoma. The filings say that these principles bar states and their political subdivisions from exercising criminal jurisdiction over Indians in Indian country unless Congress expressly authorizes it, which it has not done in this instance, leaving the United States and the Muscogee (Creek) Nation with exclusive criminal jurisdiction over Indians in Indian country.

The motion to intervene and proposed complaint outline the United States’ governmental interest, in this and similar cases, in supporting the inherent sovereign power of all federally recognized tribes to exercise criminal jurisdiction over Indians for conduct occurring on their reservations, and in defending Congress’ plenary and exclusive authority over Indian affairs. The filings also cite the 1832 Treaty with the Creeks that no “State or Territory [shall] ever have a right to pass laws for the government of such Indians, but they shall be allowed to govern themselves.”

Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division made the announcement.

The Environment and Natural Resources Division’s Indian Resources Section is handling the case.

The Justice Department, FBI, U.S. Postal Inspection Service (USPIS), and other federal law enforcement agencies announced today the completion of the Money Mule Initiative, an annual campaign to identify, disrupt, and criminally prosecute networks of individuals who transmit funds from fraud victims to international fraudsters. Fraudsters rely on money mules to facilitate a range of fraud schemes, including those that predominantly impact older Americans, such as lottery fraud, romance scams and grandparent scams as well as those that target businesses or government pandemic funds.

As part of this year’s initiative, law enforcement took action to stop over 3,000 money mules responsible for facilitating a range of fraud schemes. These thousands of actions ranged from criminal prosecutions designed to punish those intentionally assisting fraudsters to warning letters intended to advise those who may have been unknowingly recruited by fraudsters. Agencies are also conducting outreach to educate the public about how fraudsters use money mules and how to avoid unknowingly assisting fraud by receiving and transferring money.

“The Justice Department is committed to using every tool at our disposal to protect Americans from fraud,” said Acting Associate Attorney General Benjamin C. Mizer. “By working with our federal partners to disrupt money mule networks, educate consumers about scams, and prosecute criminals, we can keep money out of the hands of international fraudsters and in the pockets of hard-working Americans.”

“The FBI and its partners will relentlessly pursue individuals looking to illegally move funds for illicit purposes,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “Our work of protecting the American people includes prosecuting individuals and networks who knowingly facilitate fraud schemes, while educating consumers and unwitting participants on the dangers of illicit money mule networks.”

“The dismantling of these criminal networks should send a strong message that the U.S. Postal Inspection Service, along with our partners, is committed to taking down these criminal networks designed to inflict financial harm, oftentimes to our most vulnerable population, older Americans,” said Inspector in Charge Eric Shen of USPIS. “The Inspection Service will continue to participate in public education efforts, while remaining committed to enforcing the laws that bring money mules and their international puppeteers to justice.”

This year’s effort was coordinated by the Justice Department’s Consumer Protection Branch, FBI, and USPIS. Other participating agencies were the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and IRS Criminal Investigation (IRS-CI).

Participating agencies served approximately 2,970 letters warning individuals that their actions were facilitating fraud schemes. Many money mules begin as victims of romance or lottery scams and are unknowingly lured by fraudsters into transmitting fraud proceeds based on lies. Other money mules are recruited into what they initially believe to be legitimate work-at-home jobs. In order to educate and deter these types of unknowing money mules, the letters served by law enforcement warned individuals that their activities are facilitating fraud and outlined the potential consequences of continuing to transmit illegally acquired funds.

Additionally, more than 20 individuals were criminally charged for knowingly receiving and forwarding victim funds or otherwise laundering fraud proceeds. These cases included:

• The Consumer Protection Branch and the U.S. Attorney’s Office for the District of New Jersey charged five defendants for allegedly acting as couriers who went to the homes of elderly victims of a grandparent scam to pick up cash, often using false names and providing victims with fake receipts. The couriers then brought the cash to other members of the conspiracy, who sent the victims’ money to the Dominican Republic.
• The U.S. Attorney’s Office for the Western District of North Carolina charged two men for allegedly laundering over $4.5 million in proceeds of business email compromise schemes and online romance scams targeting elderly victims. The defendants opened bank accounts to receive wires and other transfers of funds from fraud victims. The defendants then withdrew and transferred the fraud proceeds, including transfers into overseas accounts, and kept a portion of the proceeds for themselves.
• The U.S. Attorney’s Office for the Eastern District of Missouri charged three men for their roles in allegedly collecting and transmitting funds from victims of a nationwide tech support fraud scam targeting the elderly. According to charges, one of the defendants recruited college students to act as couriers to collect payments from victims around the country and to fraudulently open bank accounts into which the proceeds of the scam would be deposited. The other two defendants allegedly provided the couriers with assignments, instructions, and payment. The defendants deposited about $7 million in cashier’s checks into one bank account between March 2020 and July 2023.

As in past years, participating agencies are also working to raise public awareness about how fraudsters recruit and use individuals to assist their fraud operations. IRS-CI implemented a public awareness campaign to warn taxpayers about the ways in which fraudsters recruit money mules. Additionally, the Justice Department and USPIS partnered with the American Banking Association Foundation to present a webinar to banks regarding money mules and the role banks can play in identifying and stopping them.

The agencies involved in this effort urge consumers to be on the lookout for signs someone is trying to recruit them to receive and transmit fraud proceeds. Do not agree to receive money or checks mailed to you or sent to your bank account for someone you have met over the phone or online. Do not open a bank or cryptocurrency account at someone else’s direction. Fraudsters will lie to persuade you to help them. They may falsely tell you that they are helping you get a lottery prize, initiate a purported romantic relationship and then tell you that they need money, or pretend to offer you a job, an opportunity to invest in a business venture, or the chance to help in a charitable effort.

If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. The Federal Trade Commission also provides a hotline at 877-FTC-HELP and a website at www.ReportFraud.Ftc.gov to receive consumer complaints.

More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. The Justice Department provides information about a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which are available at www.ovc.gov.