District Not Recorded

WASHINGTON – The Justice Department today announced a comprehensive settlement agreement under the Americans with Disabilities Act (ADA) with the Beth Israel Deaconess Medical Center (BIDMC) in Brookline, Mass., to ensure access to medical facilities and services for individuals with disabilities. BIDMC, a teaching hospital affiliated with Harvard University, encompasses more than 30 buildings and three community health clinics, and operates as a quaternary acute care facility and level one trauma center providing sub-specialty services. The agreement requires, among other things, that BIDMC ensure that accessible patient rooms and accessible medical equipment – such as examination tables – are available for each of its clinical services.

"This agreement with a major teaching hospital that serves a diverse metropolitan community is a major step toward access to equal medical treatment for individuals with disabilities," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "It is a top priority of the Civil Rights Division to enforce laws that guarantee that persons with disabilities have equal access to medical care and critical services. We applaud the Beth Israel Deaconess Medical Center for working closely and cooperatively with us to reach a resolution."

The Agreement with BIDMC, which is the result of a compliance review conducted by the Department, requires BIDMC to:

• Take steps to ensure that a minimum of 10 percent of its existing patient rooms are accessible, including accessible toilet facilities, and are dispersed through its clinical services;
• Ensure that each department and clinical practice provides at least one accessible examination table that lowers to 17 to 19" from the floor, thus enabling those with mobility disabilities to transfer to the exam table;
• Survey existing hospital and patient care facilities and equipment, including patient beds, exam tables, lifts, and radiologic and diagnostic equipment, for compliance with ADA standards; and implement a system to ensure that BIDMC purchases accessible equipment where they are commercially available;
• Develop and implement a barrier removal plan;
• Review hospital policies and train staff to address the needs of individuals with disabilities; and
• Appoint an ADA officer to oversee implementation of the agreement. 

The ADA prohibits discrimination by public accommodations on the basis of disability, including the denial by medical facilities of equal medical services to individuals with disabilities. Those interested in finding out more about these agreements or seeking information about and how to comply with the ADA can call the Justice Department's toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD), or access its ADA Web site at http://www.ada.gov.

WASHINGTON - Rosa N. Rivera, a resident of the Bronx, N.Y., pleaded guilty today to aiding and assisting in the presentation of a false individual income tax return for clients and to filing a false individual income tax return, the Justice Department and Internal Revenue Service (IRS) announced. Magistrate Judge Gabriel Gorenstein released Rivera on bail pending sentencing.

According to the charging information filed in Manhattan, Rivera owned and operated RNR Tax Service located in the Bronx, a firm that provided tax return preparation services to clients. Between 2003 and 2006, Rivera aided and assisted clients in the preparation of false income tax returns that were filed with the IRS. Specifically, Rivera falsified income tax returns for clients by claiming and itemizing Schedule A deductions and expenses, such as charitable contributions, medical and dental expenses and job-related expenses, that were either fictitious or grossly-inflated.

Rivera also falsified Schedule E rental property expenses and losses. Rivera’s alleged scheme to falsify deductions and expenses on her clients’ returns resulted in the reduction of taxable income reported by her clients to the IRS and, thus, fraudulently reduced the payment of income taxes lawfully owed to the U.S. Treasury.

By fraudulently reducing the reported tax liability of her clients, the information charges that Rivera was able to generate more business from prospective clients seeking assistance in the preparation of federal income tax returns.

In addition to admitting to aiding in the filing of a false tax return for clients, Rivera also pleaded guilty to falsifying her own tax return for the 2005 tax return by failing to report all her income earned from her tax return preparation business.

Sentencing is scheduled for Jan. 22, 2010. On each count to which she has pleaded guilty, Rivera faces a maximum sentence of three years in prison, one year of supervised release, substantial fines, a special assessment of $100 and the costs of prosecution.

Acting Assistant Attorney General John A. DiCicco of the Justice Department’s Tax Division thanked the IRS-Criminal Investigation New York Field Office which investigated the case, as well as Tax Division trial attorney John N. Kane, Jr. who prosecuted the case. Acting Assistant Attorney General DiCicco also thanked the U.S. Attorney’s Office for the Southern District of New York for their assistance in the prosecution.

WASHINGTON - Sims Lawson Jr., a resident of Killen, Ala., was sentenced to 70 months in prison by Judge R. David Proctor, the Justice Department and Internal Revenue Service (IRS) announced today.

In June 2009, Lawson pleaded guilty to filing false tax returns for years 2002 through 2004. According to the plea agreement and statements made during the sentencing hearing, Lawson willfully omitted from his tax returns income that he had embezzled from an estate that he managed. Lawson was hired in 2002 to co-manage an estate, and his duties included managing the books and records of the estate, collecting on loans made by the estate, and determining the estate’s value for tax purposes. In 2005, the estate received an ex parte court order removing Lawson from his responsibilities as trustee. It was later determined that Lawson had misappropriated at least $721,417 in 2002, 2003 and 2004, which he also failed to report on his personal tax returns. The estate also paid Lawson an additional $297,352, which he failed to report on his individual tax return.

According to the plea agreement and statements made during the sentencing hearing, throughout the time period he was employed with the estate, Lawson misappropriated money from the estate in several ways. First, Lawson wrote checks from the estate payable to himself and used estate checks to pay his personal expenses.

Additionally, Lawson fraudulently used estate checks to pay for the installation of a swimming pool at his personal residence, renovations on his personal residence, and extravagant trips to locales including New York City, Las Vegas, the Sundance Film Festival, the Bahamas and Disney World. Lawson also purchased timeshares at the Atlantis resort in the Bahamas, as well as timeshares at the Disney World resort in Orlando, Fla., with embezzled funds. Finally, Lawson also used funds from the estate to purchase jewelry and tickets to various events.

Acting Assistant Attorney General John A. DiCicco of the Justice Department’s Tax Division thanked Tax Division attorneys Jed Silversmith and Matthew Mueller, and Assistant U.S. Attorney Melissa Atwood, who prosecuted the case. He also thanked the IRS Criminal Investigation agents in the Birmingham office who investigated the case.

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

A Panamanian company that operated a 40,000-ton oil tanker ship that regularly made calls in multiple ports in Texas pleaded guilty today in federal court in Houston for deliberately concealing pollution discharges from the ship directly into the sea.

Styga Compania Naviera S.A., the operator of the M/T Georgios M, pleaded guilty to three felony violations of the Act to Prevent Pollution from Ships for failing to properly maintain an oil record book as required by federal and international law.

According to a plea agreement filed with U.S. District Court for the Southern District of Texas, the company has agreed to pay a $1 million criminal fine along with a $250,000 community service payment to the congressionally-established National Marine Sanctuary Foundation. The money will be designated for use in the Flower Garden and Stetson Banks National Marine Sanctuary, headquartered in Galveston, Texas, to support the protection and preservation of natural and cultural resources located in and adjacent to the sanctuary.

"Stopping the illegal pollution from ships continues to be a priority for the Department," said John C. Cruden, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "As long as companies continue to bypass this nation’s environmental laws, the department will continue to bring cases and seek justice for those involved."

"This case clearly demonstrates the Coast Guard’s commitment to work with our interagency partners to aggressively enforce all maritime anti-pollution and safety of life at sea laws. The breadth and magnitude of the investigation that underpinned the charges brought forth is a testament to the dedication of all persons who were involved in resolving this matter including the Coast Guard Investigative Service, the Environmental Protection Agency, and the U.S. Department of Justice," said Rear Admiral Mary Landry, Eighth District Coast Guard commander.

"The seas must be protected and commercial vessels must operate safely and lawfully," said Paula D. Brown, Acting Special Agent in Charge for Environmental Protection Agency’s Criminal Investigation Division in Houston. "Those who use the oceans or our waters as dumping grounds for waste oil and sludge will be vigorously prosecuted."

According to the joint factual statement, from December 2006 until February 2009, senior engineering officers and crewmembers acting on behalf of Styga installed a bypass pipe known as a "magic pipe" in order to avoid the pollution control equipment on-board the ship. The senior engineers then directed junior engineers to connect the so-called "magic pipe" and deliberately discharge sludge and oily waste directly into the ocean.

Federal and international law requires that all ships comply with pollution regulations that include the proper disposal of oily water and sludge by passing the oily water through a separator aboard the vessel or burning the sludge in the ship’s incinerator. Federal law also requires ships to accurately record each disposal of oily water or sludge in an oil record book, and to have the record book available for the U.S. Coast Guard when the vessel is within the waters of the United States. The Georgios M often called on ports in Corpus Christi, Texas City, Freeport, and Houston, Texas while engaging in the international oil trade.

According to court documents, the engineers knowingly failed to make the required entries into the oil record book including the fact that sludge and oily waste had been discharged directly into the ocean using the "magic pipe" and circumventing the internationally required pollution control equipment. The senior engineers also made false entries in the oil record book to conceal the fact that the pollution control equipment had not been used. The crewmembers then attempted to conceal the discharges on Feb. 19, 2009, during a Coast Guard boarding at the port in Texas City, by providing the falsified oil record book to the boarding crew.

The investigation was conducted by the Coast Guard Marine Safety Unit Texas City, Texas; Coast Guard Investigative Service in Houston, and the Environmental Protection Agency Criminal Investigation Division in Houston. The case is being prosecuted by the Justice Department’s Environmental Crimes Section.

Medicare fraud charges have been filed against six individuals in the continuing operation of the Medicare Fraud Strike Force in Houston.

In an indictment unsealed today, Bassey Monday Idiong, 30, owner of B.I. Medical Supply LLC, Linda Eteimo Ere Kendabie, 27, an administrative assistant at B.I. Medical, and Modupe Babanumi, 42, a patient recruiter for B.I. Medical, all of whom reside in the Houston area, were each charged with participating in a scheme to submit claims to Medicare for medically unnecessary durable medical equipment (DME) .  In many instances the DME was not given to the purported patients.  This equipment included so-called "arthritis kits," which consist of sets of orthotic braces that are purportedly used for the treatment of arthritis-related conditions. 

The indictment alleges that the defendants caused to be submitted to Medicare more than $840,000 in false and fraudulent claims for the kits at a billing cost of approximately $4,000 per kit. The indictment alleges that in one instance, B.I. Medical billed a kit to Medicare that included two knee braces for a Medicare beneficiary who had only one leg. 

Charges were also unsealed yesterday against Ana Quinteros, 28, and Michelle Turner, 42, both of Houston, who were each charged in a superseding indictment with one count of conspiring to defraud Medicare for their participation in a scheme to submit false and fraudulent claims, also for arthritis kits.  Four individuals charged in the original indictment of July 2009, Clifford Ubani, Princewill Njoku, Mary Ellis and Rolondae Mitchell-Straughter, were also charged with various healthcare frauds in the superseding indictment.  The scheme resulted in approximately $1.1 million in billings to the Medicare program.

And, Charles L. Roberts, 57, of Houston, was arrested on Oct. 2, 2009, on a complaint in connection with his role as a recruiter for KO Medical, a DME company owned and operated by Kate and Oliver Nkuku.  Charges against Kate and Oliver Nkuku were announced previously.  The complaint charges Roberts, aka "Chucky Roberts," with conspiracy to commit health care fraud and alleges that he provided Medicare beneficiary information to KO Medical so false and fraudulent claims for power wheelchairs and other DME could be submitted to Medicare. 

The complaint also alleges that KO Medical billed Medicare for power wheelchairs under special codes indicating that a new piece of DME was being provided as a replacement for a similar piece of DME that was lost, damaged or destroyed during a natural disaster, such as a hurricane.  Use of this modifier when a bill is submitted to Medicare allows DME to be billed without a physician’s prescription, because it is merely intended to replace a destroyed item that Medicare presumes was initially obtained with a proper prescription.  The complaint alleges that in fact none of the beneficiaries involved actually had a power wheelchair that was lost or damaged.  The complaint alleges that Oliver Nkuku paid Roberts a kickback of $400 each time Medicare paid for a power wheelchair for a beneficiary referred by Roberts.

The cases are being prosecuted by attorneys from the Criminal Division’s Fraud Section, including Assistant Chief John S. (Jay) Darden, Trial Attorneys Charles Reed and Katherine Houston, and Special Trial Attorney Anthony Burba.

An indictment or a complaint is merely an allegation, and defendants are presumed innocent until and unless proven guilty.

The Strike Force in Houston is the fourth phase of a targeted criminal, civil and administrative effort against individuals and health care companies that fraudulently bill the Medicare program.

Since inception in March 2007, Strike Force operations in four districts have resulted in indictments of 331 individuals who collectively have falsely billed the Medicare program for more than $720 million.  In addition, HHS’ Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

Ubani Superseding Indictment

Idiong Kendabie and Babanumi Indictment

Twenty defendants, most of them residing in the Los Angeles area, have been charged in seven cases for allegedly participating in Medicare fraud schemes that resulted in more than $26 million in fraudulent bills to the Medicare program.

Federal and state agents arrested seven of the defendants this morning, and seven others were taken into custody last week, as the result of an investigation by the Medicare Fraud Strike Force that targeted fraudulent durable medical equipment (DME) providers. The seven defendants arrested today are scheduled to make their initial appearances in U.S. District Court in Los Angeles beginning this afternoon.

"Today’s indictments and arrests are important achievements in our ongoing fight against Medicare fraud, but there is more that we can, and will, do," said Assistant Attorney General of the Criminal Division Lanny A. Breuer.  "Our Medicare Fraud Strike Force will continue to be vigilant in rooting out criminals who masquerade as health care providers in order to steal from American taxpayers.  Every dollar stolen from the Medicare program is one dollar too many."

"The Strike Force has been an effective tool to address a long-standing problem in my district," said Acting U.S. Attorney George S. Cardona. "The nearly two dozen people charged in recent weeks are linked to more than $26 million in fraudulent billings. That money is better spent paying for the medical needs of legitimate patients."‬‪

"Our Strike Forces are working.  The continued cooperation among our agencies has once again resulted in more indictments and arrests of those suspected of defrauding the Medicare Trust Fund," said Daniel R. Levinson, HHS Inspector General.  "Today’s operations demonstrate the effectiveness of using advanced technologies to detect fraud schemes and to support our joint enforcement efforts."

The seven cases announced today involve DME company owners and marketers who are accused of engaging in a variety of schemes that defrauded the Medicare program through fraudulent bills which total approximately $26 million. The charging documents outline criminal schemes involving the fraudulent ordering of power wheelchairs, orthotics (devices designed to assist with orthopedic problems) and hospital beds. In addition to the arrests, federal agents today executed search warrants at four locations in Los Angeles County.

Michael Martinez, 30, of Long Beach, Calif., and six other defendants were charged with conspiracy to commit health care fraud and for making false statements to the government. Martinez allegedly recruited relatives and individuals linked to the Santa Ana-based Brook Street Gang to act as straw owners for four fraudulent DME companies. The six other defendants – Angel Michel, 36, of San Diego; Guadalupe Alcaraz, 30, of Corona, Calif.; Theresa Padilla, 23, of Moreno Valley, Calif.; Pedro Franco, 28, of Torrance, Calif.; Ricardo Navarro, 49, of Corona; and Martin Padilla, 42, of Moreno Valley – allegedly each received approximately $5,000 from a Martinez associate to act as the nominal owners of the fraudulent DME companies. In this way, they could deceive Medicare by concealing the true identities of those who actually owned the companies. The indictment alleges that as part of the conspiracy, the fraudulent DME companies – Mercy Medical Supplies Inc.; Chatsworth Medical Equipment Inc.; All Your Needs Healthcare Products Inc.; and Global Meridian Management Inc. – submitted approximately $11.2 million in fraudulent Medicare claims for medically unnecessary power wheelchairs and orthotic devices. If convicted on all counts in the indictment, Martinez faces a maximum statutory penalty of 75 years in federal prison, and the other six defendants each face maximum sentences of 15 years in prison.

The owners of four DME companies and two of their employees were arrested on October 15 after being indicted for allegedly submitting more than $12 million in false claims to Medicare for power wheelchairs, orthotics and other medical equipment that the conspirators either did not supply, supplied to beneficiaries who did not need the equipment, or allegedly supplied to deceased beneficiaries. Christopher Iruke, 57, of Los Angeles, the owner of Pascon Medical Supply, and employee Darawn Vasquez, 25, of Inglewood, Calif., are alleged to have acquired fraudulent prescriptions and documents from individuals who recruited Medicare beneficiaries or were associated with fraudulent medical clinics. Iruke, Vasquez and Iruke’s wife, Connie Ikpoh, 47, also of Los Angeles; as well as Jummal Joy Ibrahim, 54, of Las Vegas; and Asia Fowler, 38, of Pacoima, Calif.; who were the alleged owners of Horizon Medical Equipment and Supply Inc., Contempo Medical Equipment Inc., and Ladera Medical Equipment Inc., are alleged to have used the fraudulent prescriptions and documents Iruke and Vasquez acquired to submit approximately $12.1 million in false claims to Medicare. The indictment charges a sixth defendant, Aura Marroquin, 28, of Los Angeles, with participating in the scheme. If convicted on the charges alleged in the indictment, the six defendants face maximum possible sentences ranging from 50 years to 180 years in federal prison. A trial in this case has been scheduled for November 24.

Maria Nela Moreno, 56, of Parlier, Calif., was indicted along with a codefendant for allegedly conspiring to submit approximately $828,835 in fraudulent claims to Medicare for medically unnecessary power wheelchairs through a DME company in Canoga Park, Calif. These defendants also are charged with six counts of submitting false claims to the Medicare program. Moreno was arrested this morning in Fresno, Calif., and faces a maximum possible sentence of 70 years in prison if convicted on all charged counts.

Anait Garanfilyan, 47, of Los Angeles, was arrested on October 15 after being indicted on multiple counts related to the payment of illegal kickbacks for Medicare patient referrals to two medical clinics in Los Angeles between February 2005 and May 2006. If convicted on all charged counts, Garanfilyan faces a maximum possible sentence of 10 years in prison. Garanfilyan is scheduled to be arraigned on Monday.

Mariya Bagdasaryan, 54, and Edgar Srapyan, 26, both of Glendale, Calif., were indicted on charges of conspiring to commit health care fraud from October 2007 to December 2008. Bagdasaryan operated a fraudulent DME company called Goldberg Medical Supply and allegedly submitted approximately $779,028 in false claims to Medicare for medically unnecessary power wheelchairs and wheelchair accessories. Bagdasaryan also is charged with paying illegal kickbacks for the referral of Medicare patients to Goldberg Medical Supply. Srapyan, though a fraudulent DME company, True Care Medical Supply, is alleged to have submitted approximately $647,356 in false claims to Medicare for unnecessary power wheelchairs and wheelchair accessories. If convicted on all charged counts, Bagdasaryan faces a maximum sentence of 90 years in prison. Srapyan faces a maximum sentence of 50 years if convicted on all counts.

Adejare Ademefun, 55, of Inglewood, was indicted for allegedly conspiring with others to submit more than $850,000 in false claims to Medicare for medically unnecessary power wheelchairs. Ademefun is charged with one count of conspiracy to commit health care fraud and five counts of health care fraud. If convicted on all charged counts, Ademefun faces a maximum possible sentence of 60 years in prison.

Sylvester Ijewere, 49, of Arleta, Calif., was named in a criminal complaint charging him with one count of health care fraud. Ijewere is associated with a DME company called Maydads that allegedly was used to submit nearly $500,000 in false claims to Medicare.  Ijeware was arrested this morning.  If convicted, Ijewere faces a maximum possible sentence of 10 years in federal prison.

An indictment merely contains allegations that a defendant or defendants have committed a crime. Every defendant is presumed innocent unless and until proven guilty at trial.

The cases are being prosecuted by Assistant U.S. Attorneys Christopher Lui, April A. Christine, Kerry O’Neill and Steven Arkow of the U.S. Attorney’s Office for the Central District of California, and Trial Attorney Jonathan Baum of the Criminal Division’s Fraud Section. The cases were investigated by the FBI; the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and the California Department of Justice, Bureau of Medical Fraud and Elder Abuse.

The case was brought as part of the Medicare Fraud Strike Force, supervised by Deputy Chief Kirk Ogrosky of the Criminal Division’s Fraud Section and Acting U.S. Attorney for the Central District of California George S. Cardona. Assistant U.S. Attorney Vince Farhat is the Strike Force coordinator in Los Angeles. Since inception in March 2007, Strike Force operations in four districts have resulted in indictments of 331 individuals who collectively have falsely billed the Medicare program for more than $720 million. In addition, HHS’ Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

Anyone with information that could assist the ongoing Strike Force investigation is encouraged to contact investigators with the Department of Health and Human Services by calling 1-800-HHS-TIPS, or emailing [email protected].

 

Garanfilyan Indictment

Strike Force Iruke Indictment

Strike Force Martinez Indictment

Strike Force Ademefun Indictment

Strike Force Bagdasaryan Indictment

WASHINGTON – The Justice Department today filed a lawsuit against Mort’s Concrete Inc. and its owner, Kevin Mortimer, for allegedly violating the rights of Wisconsin Army National Guardsman Rocco Sylvester Jr. by failing to properly re-employ him when he returned from active military duty in Iraq. The lawsuit alleges that Mort’s Concrete and Mortimer violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), which, subject to certain limitations, requires that individuals who leave their civilian jobs to serve in the military be promptly re-employed by their civilian employers in the same positions, or in positions comparable to the positions they would have held had their employment not been interrupted by military service.

According to the department’s complaint, filed in the U.S. District Court in Madison, Wis., Mort’s Concrete and Mortimer violated USERRA by not reemploying Sylvester in his previous position as a full-time construction foreman upon his return from active duty. Instead, Mort’s Concrete and Mortimer re-employed Sylvester in a non-supervisory laborer position with significantly fewer work hours. The department seeks to recover the lost wages and benefits that Sylvester would have received had he been properly re-employed as a full-time foreman.

"Members of the military who put their lives on the line to protect our nation deserve to know they will not be penalized for their service and their bravery," said Thomas Perez, Assistant Attorney General for the Civil Rights Division. "The Justice Department is committed to protecting the rights of those who, through their bravery and sacrifice, secure the freedom and civil rights of all Americans."

The Labor Department’s Veterans’ Employment and Training Service investigated and attempted to resolve Sylvester’s USERRA complaint before referring it to the Justice Department for litigation.

The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. This is the 20th USERRA lawsuit the Civil Rights Division has filed in 2009 on behalf of service members. Additional information about USERRA can be found on the Justice Department’s Web sites at http://www.justice.gov/crt/emp and http://www.servicemembers.gov, as well as on the Labor Department’s Web site at http://www.dol.gov/vets/programs/userra/main.htm.

WASHINGTON — Attorney General Eric Holder recognizes 247 department employees for their distinguished public service today at the 57th Annual Attorney General Awards Ceremony.  Thirty-nine other individuals outside of the department are also honored for their work.  Held at DAR Constitution Hall, this annual ceremony recognizes both department employees and others for their dedication to carrying out the Department of Justice’s mission.

“It is my privilege to honor these recipients for their outstanding service and commitment to our country,” Attorney General Holder said. “Each of these dedicated servants has carried out the important mission of the Department of Justice and has done so with excellence and distinction.  Their varied accomplishments have advanced the interests of justice on behalf of the American people, and I’m proud to call them my colleagues.”

Attorney General Holder and Deputy Attorney General David W. Ogden presented the Attorney General’s Award for Exceptional Service – the department’s highest award – to the team responsible for the prosecution of United States v. Ferguson.The Attorney General’s Award for Exceptional Service is the department’s highest award.

The Attorney General’s Award for Exceptional Service is presented to the team whose investigation and prosecution ended a three-year crime spree, headed by former Los Angeles Police Department Officer Ruben Palomares. The six-year investigation and prosecution that broke this conspiracy resulted in 15 individuals pleading guilty and the conviction at trial of two others.  Through their tireless dedication, teamwork, creativity and legal skill, they helped restore a sense of justice to victims and communities who had been preyed upon by the very people who had sworn to serve and protect them.

The recipients of the Attorney General’s Award for Exceptional Service include, from the Department of Justice’s Civil Rights Division, Jeffrey S. Blumberg, Special Litigation Counsel; Joshua D. Mahan, Trial Attorney; from the U.S. Attorney’s Office for the Central District of California, Douglas McKinley Miller, Assistant U.S. Attorney; and from the Federal Bureau of Investigation (FBI) Los Angeles Division, Special Agent Philip J. Carson.

The Attorney General’s Award for Exceptional Heroism is given to recognize an extraordinary act of courage and voluntary risk of life during the performance of official duties.  This year, the award was presented to Anthony J. Layfield, Senior Officer Specialist of the Federal Bureau of Prisons U.S. Penitentiary in Atlanta.

Anthony J. Layfield is honored for his commendable act of heroism.  On June 2, 2008, a fellow officer was violently attacked by a highly aggressive inmate.  As a result of Officer Layfield’s quick, decisive actions, and his continued attentiveness and dedication to duty, the life of a staff member was saved.  This heroic act spared a family the loss of a husband and a father. 

The Edward H. Levi Award for Outstanding Professionalism and Exemplary Integrity is presented to pay tribute to the memory and achievements of former Attorney General Edward H. Levi, whose career as an attorney, law professor and dean, and public servant exemplified these qualities in the best traditions of the department.   Edwin S. Kneedler, Deputy Solicitor General for the Office of the Solicitor General, is presented the award this year.

Mr. Kneedler played an indispensable role in complex and time-consuming intra-governmental deliberations on diverse matters of great sensitivity and importance, including the handling of congressional subpoenas of former presidential advisors and presidential records, the proper treatment of Guantanamo detainees, the release of Office of Legal Counsel opinions, and the appropriate role and uses of presidential signing statements. 

The Mary C. Lawton Lifetime Service Award recognizes employees who have served at least 20 years in the department and have demonstrated high standards of excellence and dedication throughout their careers.   This year’s award is presented to William J. Edwards, First Assistant U.S. Attorney for the Northern District of Ohio.  Mr. Edwards is recognized for his outstanding legal expertise, managerial and supervisory skills, and his active leadership role as the interim U.S. Attorney for the Northern District of Ohio.  For more than 40 years, Mr. Edwards has fostered strong relationships throughout his federal career with the Executive Office for U.S. Attorneys (EOUSA) and other heads of federal, local and state agencies in support of the law enforcement efforts of this District.  Mr. Edwards is an exceptional individual and role model who epitomizes professionalism and dedication as an outstanding federal employee.

The William French Smith Award for Outstanding Contributions to Cooperative Law Enforcement is an honorary award granted to recognize state and local law enforcement officials who have made significant contributions to cooperative law enforcement endeavors.   This year’s award is presented to Detective Deborah K. Scates oftheHartford, Conn., Police Department and Sergeant Christopher McKee of the Windsor, Conn., Police Department for their the investigation and prosecution of United States v. Paris, et al., a high-profile sex trafficking case that resulted in the conviction of 10 individuals and the rescue of multiple women and juvenile girls that the individuals exploited.

The Attorney General’s Award for Meritorious Public Service is the top public service award granted by the department, and is designed to recognize the most significant contributions of citizens and organizations that have assisted the Department of Justice in the accomplishment of its mission and objectives. This year’s award is presented to a team from the Federal Correctional Institution (FCI) in Miami, Fla. Recipients include Dr. Selma DeJesus, Chief Psychologist; Dr. Sherri Skibinski, Drug Abuse Program Coordinator Nestor Chavez, Supervisor of Education; Lori Bearden, Case Manager; Giovanni Gras, Teacher; Mark Jones, Correctional Counselor; and Paola Londono, Unit Secretary. These award recipients developed the Inmate Change and Alternative Network (ICAN). ICAN is part of a re-entry program that focuses on networking with Federal, State, and local agencies to create a partnership and/or referral network that provides services to equip inmates for release.

The Attorney General’s Award for Distinguished Service is the Justice Department’s second highest award for employee performance.   The recipients of this award exemplify the highest commitment to the department’s mission.   Seventeen Distinguished Service Awards were presented this year to individuals or teams of people.

One award is presented to members of a team from the National Criminal Enforcement Section of the Justice Department’s Antitrust Division including Mark R. Rosman, Assistant Chief, and Trial Attorneys Brent C. Snyder, Kathryn M. Hellings, Mark C. Grundvig and Elizabeth A. Aloi.  Through the team’s leadership, dedication, and exceptional investigative and litigation efforts, multiple worldwide conspiracies to fix and raise prices, rates and fees for airline passenger travel and for airline cargo shipments of goods were broken up, and competition was restored to a globally vital industry.

The Attorney General’s Award for Distinguished Service is also presented to a team honored for their extraordinary efforts throughout the fast-moving and intense trial and appellate proceedings to defend the Navy’s ability to conduct mission critical training using active SONAR prior to deployment to hot spots around the world, while at the same time working with the Navy to ensure compliance with the nation’s environmental laws.  Recipients were from the Wildlife and Marine Resources Section of the Environment and Natural Resources Division, Seth M. Barsky, Assistant Section Chief; Kristen L. Gustafson and S. Jay Govindan, Senior Trial Attorneys; Kevin W. McArdle and Michael R. Eitel, Trial Attorneys; from the Natural Resources Section of the Environment and Natural Resources Division, Charles W. Findlay III, Assistant Section Chief; Charles R. Shockey, Luther L. Hajek and Guillermo A. Montero, Trial Attorneys;from the Appellate Section of the Environment and Natural Resources Division, Andrew C. Mergen, Assistant Section Chief; Allen M. Brabender, Michael T. Gray and Charles R. Scott, Trial Attorneys;from the Office of the Solicitor General, Edwin S. Kneedler, Deputy Solicitor General and Anthony A. Yang, Assistant to the Solicitor General.

Another Attorney General’s Award for Distinguished Service is presented to Assistant U.S. Attorney Phil Lynch from the Western District of Washington.  Phil Lynch is recognized for his outstanding commitment to justice on both United States and international soil.  For 14 years, he successfully defended the United States as a civil Assistant U.S. Attorney handling numerous, complex medical malpractice actions for the Western District of Washington.  From 2005-2006, he served at the Regime Crimes Liaison Office in Baghdad, where he assisted Iraqi attorneys prosecuting crimes by the regime of Saddam Hussein.  In January 2008, Mr. Lynch once again agreed to leave family and home to serve a one-year term as the Rule of Law Coordinator at the U.S. Embassy in Baghdad, which made him the most senior Department of Justice official in Iraq. 

Larry W. Krisl, Special Agent, Denver Field Division, and Christopher J. Trainor, Special Agent, Baltimore Field Division, both from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) are awarded the Attorney General’s Award for Distinguished Service.  Special Agents Krisl and Trainor were assigned to the U.S. Embassy in Baghdad, Iraq, from October 2007 to September 2008.  They were involved in day-to-day embassy law enforcement operations and the initiation and oversight of several high-profile investigations.  Despite great personal risk they performed their duties to ensure the safety and security of others.

Seven individuals are awarded the Attorney General’s Award for Distinguished Service for their workon United States v. Eye and Sandstrom. The team obtained convictions against two violent, racially-motivated offenders.  Due to this team’s hard work and excellent litigation skills, two killers were brought to justice, and an entire community's civil rights were vindicated. Award recipients from the Department’s Civil Rights Division include Eric L. Gibson, Trial Attorney; Daniel K. Rosenholtz, former Paralegal Specialist; individuals from the FBI include, Arch G. Gothard, IV, Special Agent in the Kansas City Division; Heith R. Janke, Special Agent in the San Antonio Division; members from the U.S. Attorneys Office for the Western District of Missouri include, Assistant U.S. Attorneys D. Michael Green and David M. Ketchmark; and Financial Analyst Elsie Robinson.

The Attorney General’s Award for Distinguished Service is also presented to a team responsible for “Operation Joint Hammer,” a transnational enforcement operation, which led to the identification and prosecution of scores of dangerous child sex offenders throughout the world. Recipients from  Also awarded the Attorney General’s Award for Distinguished Service are Senior Officers Andrew Cruickshank and Jose Gonzalez from theFederal Correctional Complex, Lompoc, Calif., for their life saving efforts on behalf of an inmate. Mr. Cruickshank and Mr. Gonzalez performed CPR on an inmate for more than 15 minutes while waiting for paramedics to arrive.  Their efforts saved an individual’s life and inspired other staff to become certified in CPR.  the Department of Justice’s Criminal Division include Assistant Deputy Chief and Assistant to the Chief for the Child Exploitation and Obscenity Section Steven J. Grocki and James M. Fottrell; from the FBI’s Innocent Images Unit Investigative Operations Analyst Linda S.  Ellerby; Investigative Support Specialists Julie Ann Harper and Maria E. Jackson; Industrial Security Specialist Crystal J. Tennessee; Information Technology Specialist Robert J. Williams and SupervisorySpecial Agent Mark E. Zimmerman; from the U.S. Postal Inspection Service, Postal Inspectors Clayton E. Gerber and J. Todd Bame; from the U.S. Department of Homeland Security, U.S. Immigration and Customs Enforcement (ICE), Senior Special Agent Theodore Siggins.

Also awarded the Attorney General’s Award for Distinguished Service is, from the Drug Enforcement Administration’s (DEA) Phoenix Field Division, Group Supervisor Mark J. Benek and Special Agents Stephanie J. Barta, Joshua F. Cluff, Karl W. Hedrick, Daniel Mehdi, Brandon Moore, Daniel E. Moritz and Robert L. Wardle; and from the Phoenix Police Department Task Force Officer Danny Valadez. The Phoenix Strike Force Group 1 receives this award for their outstanding Organized Crime Drug Enforcement Task Force (OCDETF) investigations aimed at dismantling a significant drug trafficking and money laundering organization.  Because of the team’s talent, dedication, and hard work, the Verdugo-Calderon Organization suffered significant damage, including the loss of its primary leadership and significant disruption to its drug trafficking activities that reached from Mexico and throughout the United States.

Another Attorney General’s Award for Distinguished Service is presented to the prosecution team that successfully investigated and prosecuted the Vasquez-Valenzuela family, which committed acts of forced prostitution by young women and minors they smuggled into the country from Guatemala. Members of the team included, from the U.S. Attorney’s Office for the Central District of California, Cheryl O’Connor Murphy, Curtis A. Kin, Anthony J. Lewis, and Sarah J. Heidel, Assistant U.S. Attorneys, and Paralegal Specialist Rochelle Wong; from the Department of Justice’s Civil Rights Division’s Criminal Section, Special Litigation Counsel Andrew J. Kline, Trial Attorney Cyra O’Daniel, and Paralegal Specialist Connie Lee; from the FBI’s Los Angeles Field Office, Special Agents Tricia Whitehill and Valerie Venegas; fromU.S. Department of Homeland Security, ICE, Special Agent Miguel Palomino; and from theOffice of the Inspector General, U.S. Department of Labor, Special Agent Jesus Quezada Jr.

Also awarded the Attorney General’s Award for Distinguished Service was the prosecution team for United States v. Pavel Lazarenk.  It was the first prosecution of a foreign political leader for laundering the proceeds of foreign crimes involving political corruption, fraud and extortion through financial institutions in the United States. Award recipients from the U. S. Attorney’s Office for the Northern District of California include, Peter B. Axelrod, Patricia J. Kenney, Stephanie Hinds and Hartley M.K. West, Assistant U.S. Attorneys; Jonathan R. Howden and Martha A. Boersch, Former Assistant U.S. Attorneys; Christine Y. Tian, Paralegal Specialist; from the department’s Criminal Division’s Organized Crime & Racketeering Section, Hallie A. Mitchell, former Trial Attorney; Amelia Lucero-Cordes, Paralegal Specialist; from the FBI Moscow Office, Bryan Earl, Legal Attaché; from the U.S. Department of Treasury, Internal Revenue Service (IRS), San Francisco District Office, Supervisory Special Agent Bennett Hong; and Charles A. Tonna, Internal Revenue Agent.

Seven individuals were awarded the Attorney General’s Award for Distinguished Service for their workin the prosecution of Michael Joseph Pepe, a U.S. citizen who traveled to Cambodia to purchase young girls from their parents. As a result of the prosecution team's commitment, dedication and exemplary efforts, a Los Angeles jury convicted Mr. Pepe of engaging in illicit sexual conduct in foreign places. Award recipients included, from the U.S. Attorney’s Office for the Central District of California, Assistant U.S. Attorneys Patricia A. Donahue, John J. Lulejian and Elizabeth R. Yang; from the U.S. Department of Homeland Security, ICE, Special Agents Gary J. Phillips, Eddy Wang and Paul Carbone; andForeign Service National Vansak Sous.

Frank H. Anderson III, Special Assistant to the Chief Information Officer in the Justice Management Division’s Office of the Chief Information Officer is awarded the Attorney General’s Award for Distinguished Service for his sustained outstanding leadership, and overall management of the department’s communication needs for nearly 20 years.  His oversight and direction have guided the complex and successful efforts of the Office of the Chief Information Officer while simultaneously providing services across the department components and to their executive officers.

The Attorney General’s Award for Distinguished Service is also awarded to,  from the Department of Justice’s National Security Division, Counterterrorism Section Sharon Lever, Deputy Chief; Joanna Baltes, Trial Attorney; from the U.S. Attorney’s Office for the Central District of Illinois, David E. Risley, Assistant U.S. Attorney; Jaci L. Carrell, Paralegal Specialist; from the U.S. Attorney’s Office for the Eastern District of Virginia, Marla Tusk, Assistant U.S. Attorney; from the FBI Aman Jordan Office, Timothy P. Kirkham, Legal Attaché; from the FBI Springfield, Ill., Division, John H. Stafford, Assistant Special Agent in Charge; Matthew J. Iskrzycki, Supervisory Special Agent; Scott B. Easton, Special Agent; Thomas Michael Shanahan, Mary Kay Eades and Rebecca L. Miller, Intelligence Analysts; from the FBI Counterterrorism Division, Jacqueline Maguire, Supervisory Special Agent, and Hillary Brie Sommer, Intelligence Analyst.; and from the FBI Critical Incident Response Group Nicholas Zambeck, Special Agent.  This team received the award for their relentless and innovative efforts in the investigation and prosecution of Ali Saleh Kaleh Al-Marri.  The trial team unraveled an international conspiracy and successfully completed one of the most high-profile terrorism cases in the department’s history. 

The Attorney General’s Award for Distinguished Service is awarded to a team honored for their outstanding efforts to produce four reports of investigation relating to allegations of politicized hiring within the Department of Justice, which resulted in the removal of nine U.S. Attorneys in 2006.  Recipients include, from the Department of Justice’s Office of the Inspector General Oversight and Review Division, Carol F. Ochoa, Assistant Inspector General for Oversight and Review; Nina S. Pelletier and Mark S. Masling, Investigative Counsels; Joseph Symcak, Senior Special Agent; Judy A. Sutrich, Senior Program Analyst; Jason R. Higley, Special Agent; Dominic N. Russoli, Paralegal Specialist; from the Department of Justice’s Office of the Inspector GeneralEvaluations and Inspections Division, Gina J. Wong, Senior Program Analyst; Cheron D. Cooper and Katherine A. Zownir, Program Analysts; Cynthia A. Schnedar, Counselor to the Inspector General, William M. Blier, Senior Counsel to the Inspector General; from the Department of Justice’s Office of Professional Responsibility, William J. Birney, James D. Duncan and Tamara Jaycox Kessler, Associate Counsels; Raymond C. Hurley, Senior Assistant Counsel; Margaret S. McCarty, Assistant Counsel; from the Department of Justice’s Criminal Division, Asset Forfeiture and Money Laundering Section, Deputy Chief of Policy, James A. Meade.

An Attorney General’s Award for Distinguished Service is also awarded to Glenn E. Belgard, Deputy U.S. Marshal of the U.S. Marshals Service Fugitive Task Force. Belgard receives the award for his outstanding leadership and investigative skill in coordinating a U.S. Marshals Service led Fugitive Task Force in central Louisiana.  Deputy Belgard has been recognized by community leaders, local, state and federal law enforcement agencies, and the Royal Canadian Mounted Police for arrests of some of the nation’s most dangerous felons.  Deputy Belgard’s accomplishments in fugitive investigations and his skillful service to the U.S. Marshals Service and the Department of Justice exemplifies professional law enforcement.

Phyllis J. Pyles, Director of the Department of Justice’s Civil Division Torts Branch receives the Attorney General’s Award for Distinguished Service for her tenacious and intelligent defense of the United States for more than three decades in tort litigation.  She has had a critical role in the development of laws protecting the United States from lawsuits.  Her work has consistently met the highest standards of professional excellence.

John D. Griffith, Assistant U.S. Attorney for the District of Columbia; from the Department of Justice’s Criminal Division, Fraud Section, Mark F. Mendelsohn, Deputy Chief; Lori A. Weinstein, Trial Attorney; Pamela Johnson, Paralegal Specialist; from the FBI Washington Field Office, Brian J. Smith and Paula L. Ebersole, Special Agents; and Troy Burrus and Howard Smith, from U.S. Department of Treasury, IRS, are presented with the Attorney General’s Award for Distinguished Service for outstanding performance in the investigation and prosecution ofSiemens AG, a German engineering company. The department’s investigation uncovered evidence of hundreds of millions of dollars of corrupt payments in dozens of countries spanning several decades, and in virtually every Siemens operating group and region. The Department’s prosecution was announced simultaneously and coordinated with a civil enforcement action by the Securities and Exchange Commission (SEC) and a criminal prosecution by the Munich Public Prosecutor’s Office, resulting in overall sanctions of more than $1.6 billion.  The Department of Justice’s coordination of its settlement not only with the SEC, but also with a foreign regulator sets a new standard in international cooperation and coordination, and serves as a model for future global anti-corruption enforcement.

The Award for Excellence in Law Enforcement recognizes outstanding professional achievements by law enforcement officers of the Department of Justice.  Four Excellence in Law Enforcement Awards are awarded this year.  

The Award for Excellence in Law Enforcement is presented toa team from the U.S. Marshals Service Regional Fugitive Task Force Program. The team is honored for their outstanding efforts and exceptional service in the reduction of violent crime and gang activity, and the apprehension of more than 33,000 fugitive felons, more than 1,200 of whom were wanted for murder, during the past fiscal year. Members include from the Southeast Regional Fugitive Task Force, Chief Inspector Keith Booker; from the Pacific Southwest Regional Fugitive Task Force, Chief Inspector Thomas Hession; from the New York/New Jersey Regional Fugitive Task Force, Chief Inspector Lenny DePaul; from the Gulf Coast Regional Fugitive Task Force, Chief Inspector Michael Richards; from the Capital Area Regional Fugitive Task Force, Chief Inspector Rob Fernandez; and from the Great Lakes Regional Fugitive Task Force, Chief Inspector Geoff Shank.

Another Award for Excellence in Law Enforcement is presented to John “Mickey” Welch, Special Agent, ATF Nashville Field Division for his leadership and outstanding investigative ability. This is demonstrated by the successful racketeer influenced and corrupt organizations investigation and prosecution of the violent street gang MS-13 in Nashville, Tenn. 

Special Agents Richard Bachour, Christopher Goumenis and Sharon Lindskoog, from the DEA Miami Field DivisionGroup Supervisor Brian McKnight; from the DEA Bogota Country Office Group Supervisor John Gazzara; andSpecial Agent Adam Allen are honored with the Award for Excellence in Law Enforcement for their participation in Operation Titan, a multi-jurisdictional Consolidated and Regional Priority Organization Target DEA investigation of drug trafficking and money laundering organizations. Coordinated efforts under the auspices of the Operation Titan team have resulted in the  arrest of more than 107 domestic and international targets, seizure of more than $40 million, more than $2 million in other related assets (to include three aircraft), 26 international bank accounts, more than 3,700 kilograms of cocaine and 10 kilograms of heroin.

Also awarded the Award for Excellence in Law Enforcement was from the FBI Salt Lake Division, Special Agents Michael J. Gnecknow and Gail L. Gnecknow; Supervisory Special Agent Donald E. Robinson, Jr.; Investigative Operations Analyst Dorothy A. Broyles; Evidence Technician Esther Tamez; Financial Analyst Michele E. Lewis; from the U.S. Attorney’s Office for the District of Idaho Assistant U.S. Attorneys Wendy Olson and Traci Whelan; Paralegal Specialist Denise Price; AutomatedLitigation Support Specialist Pamela J. Rocca; andVictims Witness Specialist Kristi Johnson.  This team receives the award for their exemplary efforts during a three-year long investigation of a brutal triple homicide and the abduction of two children in Coeur d’Alene, Idaho, in May 2005.  As a result of their efforts, a violent serial sexual predator was arrested, and one of the abducted children was recovered. 

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

Paul J. Copenhaver, Warden at the Federal Correctional Institution (FCI) in Dublin, Calif., is awarded the Attorney General’s Award for Excellence in Management for maintaining high expectations of staff and inmates.  He is directly responsible for the planning and oversight of security enhancements and procedures at the FCI in Dublin.  Through constant oversight, he engineered a 32 percent reduction in overtime expenditures.  His leadership and knowledge have made him a valuable resource for the Bureau of Prisons (BOP) and other federal agencies, providing significant contributions to the overall management of staff, inmates and general operations of FCI Dublin.

            Another Attorney General’s Award for Excellence in Management was presented to the Grid Computing Initiative Implementation Team for their creative insight and dedication in the implementation of a virtual supercomputer across the FBI Trilogy network. Award recipients include, from the FBI’s Operational Technology Division, Jesse H. Taylor, Senior Cryptologic Mathematician; Vivian K. Clifton, Electronics Engineer; Paul S. Driscoll, Supervisory Information Technology Specialist; An Q. Nguyen and Chad Richard Loewenstine, Mathematicians.

Maggie K. Hansen, Supervisory Librarian, Robert F. Kennedy Building Main Library, in the department’s Justice Management Division also received the Attorney General’s Award for Excellence in Management.  Hansen is recognized for assisting litigation efforts by all department components through her legislative history research.  Ms. Hansen foresaw the importance of developing a historical archive of departmental documents, speeches, and memorabilia by and about the department.  This collection has been instrumental in providing necessary primary sources to Department of Justice components.

The Attorney General’s Award for Excellence in Information Technology recognizes outstanding achievements in applying information technology to improve operations and productivity reduce or avoid costs and solve problems.  

James Mark Fleshman, Chief Information Officer for the Executive Office for U.S. Attorneys (EOUSA) receives the award for outstanding innovation and leadership in the development and management of EOUSA’s and the U.S. Attorneys Office’s (USAO) information management and information technology resources, which are deployed nationwide in more than 200 staffed sites.  For the past decade, he has served as a highly effective change agent and as a member of the management team, has planned and implemented creative approaches resulting in improved U.S. Attorneys Offices’ operational effectiveness and efficiency at reduced costs. 

An Attorney General’s Award for Excellence in Information Technology is awarded to the team that developed and deployed the Innocence Lost Database (ILD) to assist local, state and federal law enforcement officers working child prostitution matters. Team members include from the FBI’s Criminal Investigation Division Crimes Against Children Unit, Jamie L. Konstas, Intelligence Analyst; from the FBI’s Washington Field Office, Heather L. Gordon, Intelligence Analyst; and from the FBI Information Technology Operations Division, Office of the Chief Technology Officer, Christopher N. Carrino, Computer Scientist.

The Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security recognizes outstanding achievements and contributions towards protecting U.S. national security.  Recipients are, from the FBI, New York City Division, Zachary J. Miller, Assistant Special Agent in Charge; John F. Karst, Jr. and Elisabete Santos, Supervisory Special Agents; Lionel A. DeSilva, James E. Dennehy, Stephen Fullington, William G. Smith, John J. Hartnett, Robert Kravec, Sara Poole, Michael R. Bickings, Robert B. Booth, Carol A. Motyka, Peter G. Diaz and Daniel S. Kim, Special Agents.

This group is recognized for their exemplary, tireless performance in connection with a multi-faceted, long-term investigation, which utilized numerous resources and sophisticated techniques. These agents displayed exceptional leadership, managerial and investigative skills throughout this complex investigation. The group’s exceptional service and achievements greatly enhanced and will continue to contribute to the overall intelligence base available to the U.S. intelligence community.  The extraordinary efforts resulted in the production of vital intelligence that enabled policy makers to further shape U.S. foreign policy and protect U.S. national security interests.

The Attorney General’s Award for Equal Employment Opportunity is the department’s highest award for performance in support of the Equal Employment Opportunity (EEO) Program.   This year’s recipient is Suzanne L. Bell, Deputy Director for Legal Recruitment and Outreach, Office of Attorney Recruitment and Management.  Suzanne L. Bell is honored for her superior management of the department’s legal hiring programs.  In addition to her exemplary accomplishments in recruitment and outreach, she has been instrumental in creating and implementing several new training initiatives, and offering critical support for new attorneys and current supervisors. 

The Attorney General’s Award for Excellence in Legal Support recognizes outstanding achievements in the field of legal support to attorneys by paralegal specialists and other legal assistants.   The recipients in the Paralegal Category are, from the Environment and Natural Resources Division, Environmental Crimes Section, Supervisory Paralegal Specialist William N. Taylor; from the U.S. Attorney’s Office for the Northern District of Georgia, Paralegal Specialist Marti P. Goldring. Recipients from the Legal Support Category are, from the Environment and Natural Resources Division, Natural Resources Section, Diana (Deedee) Sparks; and from theExecutive Office of U.S. Trustees – Dallas, TexasLegal Clerk Christi C. Flanagan.

The Attorney General’s Award for Excellence in Administrative Support recognizes outstanding performance in administrative or managerial support by an administrative employee or secretary.   Recipients in the Administrative Category are, Misti L. Kloubec, Administrative OfficerBudget Analyst, U.S. Attorney’s Office for the Northern District of Iowa; and Peggy C. Taylor, Administrative Officer, Region 7, U.S. Trustees Program. The recipient in the Secretarial Category is Rosa F. Rach, Administrative Assistant, Drug Enforcement Administration Operations Division.

The Attorney General’s Award for Outstanding Service in Freedom of Information Act Administration recognizes exceptional dedication and effort to the implementation of the Freedom of Information Act (FOIA). This year’s recipient from the U.S. Marshals Service is Associate General Counsel William Edward Bordley. By implementing new initiatives such as the FOIA/Privacy Act Web site and electronic reading room, Mr. Bordley greatly enhanced accessibility of information to U.S Marshals Service employees and the public. 

The Attorney General’s Award for Fraud Prevention recognizes exceptional dedication and effort to prevent, investigate and prosecute fraud, white-collar crimes and official corruption.   Two awards are presented this year. The Attorney General’s Award for Fraud Prevention is presented to the team responsible for prosecuting the largest pharmaceutical fraud case in the history of the Department of Justice. Receiving the award are, from the U.S. Attorney’s Office for the Eastern District of Pennsylvania, Catherine L. Votaw, Joseph A. Trautwein, Denise S. Wolf, Marilyn May, Alvin Stout, Nancy Rue, and Margaret Hutchinson, Assistant U.S. Attorneys; Denis Cooke and Alison Barnes, Auditors; from the Department of Justice’s Civil Division, Consumer Litigation Branch, Jeffrey Steger and Ross Goldstein, Trial Attorneys; Regina Hosey, Paralegal; from the Civil Division, Frauds Section, Patricia R. Davis, Assistant Director; Patricia Hanower, Trial Attorney.

The Attorney General’s Award for Fraud Prevention is also presented to, from the U.S. Attorney’s Office for the Central District of California, George S. Cardona, Acting U.S. Attorney: Richard E. Robinson, and Douglas A. Axel and George S. Cardona, Assistant U.S. Attorneys; from the U.S. Postal Inspection Service, James Harbin, Catherine Budig and Loretta Cummings, Postal Inspectors; Daniel Ryan and Humberto DaFonte, Consumer Fraud Analysts; and from the U.S. Department of Treasury, IRS, Criminal Investigation Division, Special Agent Gary Tang. The team is recognized for their demonstrated excellence and perseverance in the successful investigation and prosecutions of Milberg Weiss and its senior partners. 

The Attorney General’s Award for Outstanding Contributions to Community Public Safety recognizes outstanding achievement in the development and support of community partnerships designed to address public safety within a community.   This year’s recipients are, from the U.S. Attorney’s Office for the District of Massachusetts, John A. Wortmann Jr. and Glenn A. MacKinlay, Assistant U.S. Attorneys; Martha Wyatt, Program Specialist; from ATF, Thomas F. Crowley, Special Agent; from Harvard University, Senior Research Associate Kennedy School of Government, Anthony Braga, PhD; from the Suffolk County District Attorney’s Office, Daniel Mulhern, Assistant District Attorney; Executive Director, Boston Ten Point Coalition, Reverend Jeffrey L. Brown; from the Boston Police Department, Sergeant Detective John Ford and Deputy Superintendant Gary French; Executive Director, Stop Handgun Violence, Laura Hyer; Director, Boston Re-entry Initiative, True-See Allah; andRe-entry Manager, Massachusetts Department of Youth Services, Christian J. Mitchell. This diverse group’s efforts serve as a model for community partnering. Faced with an alarming increase in gang-related violent crime that threatened the viability of several Boston neighborhoods, the team launched a collaborative two-year effort aimed at improving the quality of life for area residents.

Robert Scott Taylor, HVAC Foreman, U.S. Penitentiary, Lee, Va., is presented the Cubby Dorsey Award for Outstanding Contributions by a Wage Grade System Employee for numerous accomplishments in his area of expertise.  Mr. Taylor completes his assignments with a high level of energy and displays the “team player” attitude necessary in a correctional environment.  Mr. Taylor is a highly motivated and dedicated individual to the mechanical services discipline and the Bureau of Prisons. 

The Attorney General’s Award for Outstanding Contributions by a New Employee recognizes exceptional performance and notable accomplishments towards the department’s mission by an employee with fewer than five years of federal career service.   Recipients are, Kenneth Moore, Senior Correctional Officer, Federal Correctional Complex, Coleman, Fla.; Aaron J. Mango, Assistant U.S. Attorney, White Collar and General Crimes Division, Western District of New York; Catherine Anne Chess Chen, General Attorney, Office of the FBI General Counsel; Trisha B. Anderson, Attorney Adviser in the Department of Justice’s Office of Legal Counsel; Zana M. Scarlett, Trial Attorney, Miami Office, Executive Office for U.S. Trustees.

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

The John Marshall Award for Trial of Litigation is presented to, from the Department of Justice’s Criminal Division, Narcotic and Dangerous Drug Section, Deputy Section Chief Julius Rothstein and Trial Attorney Matthew R. Stiglitz; and Deputy Chief for Policy and Appeals, Teresa Wallbaum.  The team is recognized for exceptional service to the department and nation for their relentless efforts in the investigation and conviction of Taliban cell leader Khan Mohammed. 

The John Marshall Award for Trial of Litigation is also presented to the team that litigated AWG Leasing Trust v. United States, the first case to go to trial involving the abusive sale in/lease out tax shelter. Recipients include, from the Department of Justice’s Tax Division, Civil Trial Section, Southern Region Assistant Chief  Angelo A. Frattarelli; from the Northern Region, Trial Attorneys Robert Kovacev, Matthew Von Schuch and Karen Smith.

The John Marshall Award for Participation in Litigation was awarded to the National Association of Realtors (NAR) trial team. This team earned an important victory for competition and consumers when NAR reversed its position and agreed to a comprehensive settlement shortly before trial. Members of the team include, from the Department of Justice Antitrust Division, Litigation I Section, Trial Attorney Steven B. Kramer; from the Networks and Technology Enforcement Section, Trial Attorney Travis R. Chapman; from the Antitrust Division, Litigation III Section, Assistant Section Chief David C. Kully; and Trial Attorneys, Craig W. Conrath, Timothy T. Finley, Lisa A. Scanlon, William H. Jones II, Owen M. Kendler and Mary Beth McGee.

Another John Marshall Award for Participation in Litigation is awarded to, from the Department of Justice Tax Division, Office of the Assistant Attorney General Kevin M. Downing, Senior Level Trial Attorney; Michael P. Ben'Ary, Trial Attorney, Northern Criminal Enforcement Section; Frank P. Cihlar, Trial Attorney, Criminal Appeals and Tax Enforcement Policy Section; and from the U.S. Attorney’s Office for the Southern District of Florida, Jeffrey A. Neiman, Assistant U.S. Attorney. This team is recognized for their outstanding work in negotiating the deferred prosecution agreement with UBS, the largest bank in Switzerland and one of the largest worldwide.

The John Marshall Award for Support of Litigation is presented to the Navajo Trust Litigation Team members for their extraordinary efforts in multiple trial, appellate and Supreme Court proceedings over nearly a decade to defend the United States from a nearly $600 million damages claim. Award recipients include, from the Department of Justice’s Environment and Natural Resources Division Natural Resources Section, Assistant Section Chief Edward J. Passarelli; Trial Attorneys, Kristine S. Tardiff and Devon L. McCune; from the Appellate Section, Assistant Section Chief William B. Lazarus and Trial Attorney Elizabeth Ann Peterson.

The John Marshall Award for the Handling of Appeals is presented to Elizabeth D. Collery, Trial Attorney in the Appellate Section of the Department of Justice’s Criminal Division.  Collery receives the award for her superlative skill in appellate advocacy.  With intelligence and integrity, Ms. Collery has presented prosecutions time and time again.  She has compiled a list of victories in some of the department’s most difficult criminal cases.

This year’s John Marshall Award for Providing Legal Advice is presented to Paul Michael Brown, Senior Counsel for Instructional Activitiesfrom the Department of Justice’s Civil Division, Tort Branch, Constitutional and Specialized Tort Litigation. Brown is honored for providing legal advice related to defending federal employees in personal lia­bility litigation. During 21 years with the department, he has worked tirelessly to share his expertise with Assistant U.S. Attorneys and agency counsel nationwide in a variety of cre­ative and cost effective ways.

The John Marshall Award for Preparation or Handling of Legislation is awarded to the Department of Justice’s Environment and Natural Resources Division’s Lacey Act Team.  This team led the administration’s efforts, in close coordination with several client agencies, to obtain amendments to the Lacey Act, a 100-year-old statute that has served as the principal anti-trafficking authority in the United States to protect a broad range of fish and wildlife. Recipients include, from the Law and Policy Section, Assistant Section Chief Karen M. Wardzinskiand Attorney Advisor, Thomas W. Swegle; and from the Environmental Crimes Section, Senior Trial Attorney Elinor Colbourn and Assistant Section Chief John T. Webb.

The John Marshall Award for Asset Forfeiture is presented to Lucille C. Roberts, Deputy General Counsel from the U.S. Marshals Service. Roberts receives the award for her distinguished service as the primary point of contact for the U.S. Marshals Service on matters related to asset seizure and forfeiture. 

David W. Gehlert, Trial Attorney from the Natural Resources Section of the Environment and Natural Resources Division is awarded the John Marshall Award for Dispute Resolution for his outstanding achievements in using alternative dispute resolution to settle a long‑standing and high profile dispute over water rights for the Black Canyon of the Gunnison National Park in Colorado.  Mr. Gehlert used mediation to obtain a settlement that successfully concluded more than 30 years of litigation. Throughout what proved to be long and difficult negotiations, Mr. Gehlert exhibited professionalism, integrity, skill, and creativity that upheld the highest tradition of the Department.

The John Marshall Interagency Cooperation in Support of Litigation Award is presented to the following recipients from the U.S. Department of Veterans Affairs Professional Staff Group II: Richard J. Hipolit, Assistant General Counsel; David J. Barrans, David R. McLenachen and Michael J. Timinski, Deputy Assistant General Counsels; Ethan G. Kalett, Supervisory General Attorney; and Martie S. Adelman, Y. Keun Lee, Jamie L. Mueller and Martin J. Sendek, General Attorneys. This team is honored for their thorough understanding of veterans’ compensation and pension law. Their efforts have enabled the department to take consistent and sound positions regarding veterans’ compensation and pension law before the federal courts.

Beginning in 2010, Attorney General Holder will present a new award, the Claudia J. Flynn Award for Professional Responsibility.  This award is named after the late Claudia J. Flynn, the department’s first director of the Professional Responsibility Advisory Office.  This award will recognize outstanding contributions by a department attorney in the very important area of professional responsibility, which until now, has not been recognized through a specific Attorney General award.

WASHINGTON — A U.S. Army Sergeant deployed to Bagram Airfield, Afghanistan, pleaded guilty today to bribery and a money laundering conspiracy arising out of her work administering transportation services, the Department of Justice announced today. The Army Sergeant has agreed to pay $90,000 in restitution to the U.S. Department of Defense (DOD) and to cooperate with the Department of Justice’s ongoing investigation.

According to the charges, filed today in the U.S. District Court for the District of New Jersey, Ana C. Chavez accepted $90,000 in cash and wire transfers as a bribe from a DOD contractor in return for Chavez exercising her influence at the Transportation Operations Support Office in the award of DOD contracts and work orders to that contractor’s company. Chavez gave a portion of the bribe proceeds to another DOD contractor working at Bagram Airfield, with whom she conspired to launder the money through various bank accounts held by Chavez’s associates in the United States. According to the court documents, the alleged conduct began at least in or about February 2005 and continued until September 2006.

Chavez pleaded guilty to one count of bribery and one count of conspiracy to commit money laundering. A violation of the bribery statute carries a maximum sentence of 15 years in prison and a fine of $250,000 or three times the value of the bribe. A violation of the money laundering conspiracy statute carries a maximum sentence of 20 years in prison and a fine of $500,000 or twice the value of the laundered funds. The maximum fine could be increased to twice the gain derived from the crimes or twice the loss suffered by the victims of the crimes if either of those amounts is greater than the statutory maximum fine.

Today’s charges are the result of an ongoing investigation prosecuted by the Antitrust Division’s National Criminal Enforcement Section (NCES), with assistance from the Criminal Division’s Office of International Affairs. The investigation of this case is being conducted by the Defense Criminal Investigative Service (DCIS), the U.S. Army Criminal Investigation Command (Army CID) and the Air Force Office of Special Investigations. Additional assistance was provided by the Internal Revenue Service, Criminal Investigations Division.

Today’s charges are an example of the Department of Justice’s commitment to protect U.S. taxpayers from procurement fraud through the National Procurement Fraud Task Force. The National Procurement Fraud Initiative, announced in October 2006, is designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in contracting activity for national security and other government programs.

Anyone with information concerning illegal conduct in the procurement of goods or services involving DOD contracts in Afghanistan is urged to contact NCES at 202-307-6694 or [email protected]; DCIS at 800-424-9098 or [email protected]; or Army CID at http://www.cid.army.mil.

WASHINGTON—A federal grand jury in Denver returned a 15-count felony indictment yesterday charging two individuals with conspiracy, wildlife trafficking and firearms violations stemming from the illegal trapping, killing and selling of bobcats and their pelts, the Justice Department announced.

The indictment charges both Jeffrey M. Bodnar and Veronica Anderson-Bodnar with conspiracy to violate the Lacey Act, two substantive violations of the Lacey Act and two violations of the Lacey Act for false records. Bodnar was also charged with seven firearms violations for possession of a firearm by a felon. Anderson-Bodnar was charged with two violations for transferring firearms to a felon.

The Lacey Act is a federal law that makes it illegal to transport or sell in interstate commerce any wildlife taken, possessed, transported or sold in violation of state law or regulation. Bobcats, whether alive or dead, are considered wildlife under both the Lacey Act and Colorado law.

The indictment alleges that from November 2006 until March 2008, Bodnar and Anderson-Bodnar conspired to knowingly transport and sell bobcat and bobcat pelts in interstate commerce that were unlawfully trapped and killed without a license and using prohibited leghold traps in violation of state law. The two also conspired to knowingly submit false records and accounts of how the bobcats were trapped for tagging by Colorado wildlife officials.

According to the indictment, Bodnar trapped and killed bobcats before, during and after the legal bobcat hunting season at different locations in and around Park County, Colo., including U.S. Forest Service property. He did so without a valid license, used leghold traps that were prohibited and then killed the trapped animals with a firearm.

The indictment further alleges that Anderson-Bodnar on more than one occasion took the bobcat pelts to the Colorado Division of Wildlife Office to be tagged. She provided information to complete the required records for the pelts and falsely certified that each had been taken legally in Colorado.

In 2006, Anderson-Bodnar responded to a newspaper advertisement placed in a Colorado paper by a fur-buyer based in Montana. The indictment alleges multiple transactions thereafter were made across state lines with the fur-buyer from Montana and Bodnar and Anderson-Bodnar.

The indictment also alleges that Bodnar and Anderson-Bodnar sold four bobcat pelts to an undercover U.S. Fish and Wildlife Service agent at their Colorado residence after the agent stated he was from out of state.

An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law.

The maximum penalty for a felony violation of the Lacey Act includes up to five years in prison and a $250,000 fine. The maximum penalty for the firearms violations includes up to 10 years in prison and $250,000 fine.

The case was investigated by the U.S. Fish & Wildlife Service and the Colorado Division of Wildlife. The case is being prosecuted the U.S. Attorney’s Office for the District of Colorado and the Justice Department’s Environmental Crimes Section.

WASHINGTON - Three tax shelter promoters, Peter J. Peggs of Prides Crossing, Mass., Robert D. Larsen of Winter Park, Colo., and Craig M. Stone, formerly of Fort Pierce, Fla., were convicted of conspiracy to defraud the United States by a federal jury in Grand Rapids, Mich., today following a four-week trial, the Justice Department and Internal Revenue Service (IRS) announced. In addition, the jury found Peggs and Larsen guilty of tax evasion.

In October 2007, Peggs, Larsen and Stone were indicted for a scheme to promote, market, sell and administer a fraudulent tax shelter. In March 2008, a superseding indictment was returned charging Anthony Merlo of New Hampshire, a business consultant and partner of Peggs and Larsen; John A. Campbell, a former partner in the Kalamazoo, Mich., office of the law firm of Miller, Canfield, Paddock & Stone P.L.C.; and Campbell’s client, Oskar René Poch of Hickory Corners, Mich., for their roles in the scheme. In April 2008, Campbell, who marketed the fraudulent insurance product; and Poch, who was the owner and operator of Trillium Staffing, an employee-leasing company in Kalamazoo, Mich., pleaded guilty to tax crimes. In May 2009, Merlo pleaded guilty for his role in the scheme.

According to evidence presented during trial, Peggs, Larsen and Stone conspired with Campbell, Merlo and others to defraud the United States by concealing facts and documents from the IRS in their promotion, marketing, sale and administration of sham "Loss of Income" insurance policies through an insurance company in the U.S. Virgin Islands known as Security Trust Insurance Company. The defendants sold these purported insurance policies to wealthy U.S. taxpayers as tax deductible products, with the understanding that the purchasers would have most of their premiums returned to them in a purportedly non-taxable manner. The clients then improperly took tax deductions for the purchase of this sham product and fraudulently reduced their taxable income. During the duration of the conspiracy, more than $12 million in premiums were collected by the promoters of the loss of income policies.

According to evidence presented during trial, Peggs, Larsen and Stone improperly disguised the return of over $3 million of Poch’s companies’ insurance premiums as funds available to Poch in the form of loans that he never repaid from a Michigan bank account in the name of an offshore foreign corporation which Poch paid the defendants to set up in the Bahamas. Moreover, Peggs, Larsen and Stone agreed in e-mails and other documents to conceal facts and documents from the IRS regarding this insurance tax shelter.

According to evidence presented during trial, Peggs and Larsen committed tax evasion by misleading the IRS during its audit of Poch’s tax returns for the years 1999 and 2000. Additionally, Peggs and Larsen lied to the IRS during its audit of Poch’s tax returns in 2002 and 2003. Peggs and Larsen also allegedly made material misrepresentations about the facts

underlying this scheme to Poch’s attorney who was preparing to contest the IRS audit determination in U.S. Tax Court against the IRS.

According to evidence presented during trial, Peggs and Larsen engaged in similar conduct with other clients and individuals in Massachusetts, Ohio and Kentucky. Another individual, Bruce M. Cohen of Louisville, Ky., was convicted in federal courts in both Ohio and Kentucky in connection with his participation in this conspiracy. Cohen, who testified during the trial, is currently serving a 37 month prison sentence for his conduct.

No sentencing date has yet been scheduled. Both the conspiracy and tax evasion convictions carry a maximum punishment of five years in prison and a fine of up to $250,000.

"The government will continue to unravel schemes promoted and used by taxpayers to evade their federal tax obligations," said John A. DiCicco, Acting Assistant Attorney General of the Justice Department’s Tax Division. "As this conviction demonstrates, those who attempt to hide behind fraudulent transactions and foreign corporations as part of their illegal tax schemes will be held accountable."

"Promoting the use of fraudulent loss of income documents for the purpose of taking false tax deductions isn't tax planning; it’s criminal activity," said Eileen Mayer, Chief, IRS Criminal Investigations. "We will continue to shut down fraudulent tax schemes and hold the promoters of these schemes accountable for their actions."

Acting Assistant Attorney General DiCicco commended the investigative efforts of the IRS agents involved in this case, as well as Justice Department Tax Division attorneys, Richard Rolwing, Patrick J. Murray, Jessica Nuzzelillo, who prosecuted the case. Acting Assistant Attorney General DiCicco also thanked the U.S. Attorney’s Office in Grand Rapids, Mich. for their assistance.

Additional information about the Justice Department's Tax Division and its enforcement efforts may be found at http://www.usdoj.gov/tax.

WASHINGTON – Omni Home Care, a home health care agency in Evansville, Ind., and its parent corporation, Omni Home Health, have agreed to pay the United States $1.97 million to settle claims that it violated the False Claims Act between 2006 and 2008, by failing to obtain certain required physician approvals before submitting bills for home health services to Medicare, the Justice Department announced today.

Under the Medicare program, a physician must sign plan of care forms for the initial home care, and must re-certify the plan at least every 60 days. In August 2008, Omni submitted a disclosure to the Office of Inspector General, Department of Health and Human Services, in which Omni stated that the required physician signatures were not timely obtained for certain services provided at its Evansville, Ind., facility. The settlement announced today resulted from the company’s disclosure.

"With the nation’s focus on health care, this settlement demonstrates the Justice Department’s commitment to ensuring that federal health care dollars are spent appropriately," said Tony West, Assistant Attorney General for the Civil Division. "It also serves as a reminder that those who come forward promptly, disclose their violations of the law and cooperate fully with the department will be dealt with fairly."

The case was handled by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Southern District of Indiana and the Office of Inspector General of the Department of Health and Human Services.

A Maryland scientist who once worked in varying capacities for the Department of Energy, the Department of Defense and the National Aeronautics and Space Administration has been arrested for attempted espionage, David Kris, Assistant Attorney General for National Security, Channing D. Phillips, Acting U.S. Attorney for the District of Columbia, and Joseph Persichini, Jr., Assistant Director for the FBI’s Washington Field Office, announced today.

A criminal complaint unsealed today in the District of Columbia charges Stewart David Nozette, 52, of Chevy Chase, Maryland, with attempted espionage for knowingly and willfully attempting to communicate, deliver, and transmit classified information relating to the national defense of the United States to an individual that Nozette believed to be an Israeli intelligence officer. The complaint does not allege that the government of Israel or anyone acting on its behalf committed any offense under U.S. laws in this case.

Nozette was arrested earlier today by FBI agents and is expected to make his initial appearance tomorrow in U.S. District Court for the District of Columbia. If convicted, he faces a maximum sentence of life in prison.

"The conduct alleged in this complaint is serious and should serve as a warning to anyone who would consider compromising our nation’s secrets for profit," said David Kris, Assistant Attorney General for National Security.

"Those who would put our nation’s defense secrets up for sale can expect to be vigorously prosecuted," said Channing D. Phillips, Acting U.S. Attorney for the District of Columbia.  "This case reflects our firm resolve to hold accountable any individual who betrays the public trust by compromising our national security for his or her own personal gain."

"The FBI is committed to protecting the nation’s classified information and pursuing those who attempt to profit from its release or sale," said Joseph Persichini, Jr., Assistant Director for the FBI’s Washington Field Office.

According to an affidavit in support of the criminal complaint, Nozette received a Ph.D. in Planetary Sciences from MIT in 1983, and worked at the White House on the National Space Council, Executive Office of the President, in 1989 and 1990. He developed the Clementine bi-static radar experiment that purportedly discovered water on the south pole of the moon. Nozette also worked at the Department of Energy's Lawrence Livermore National Laboratory from approximately 1990 to 1999 where he designed highly advanced technology. At the Department of Energy, Nozette held a special security clearance equivalent to the Defense Department Top Secret and Critical Nuclear Weapon Design Information clearances. Department of Energy clearances apply to access to information specifically relating to atomic or nuclear-related materials.

Nozette was also the President, Treasurer and Director of the Alliance for Competitive Technology (ACT), a non-profit corporation that he organized in March 1990. Between January 2000 and February 2006, Nozette, through his company ACT, entered into several agreements to develop advanced technology for the U.S. government. Nozette performed some of this research and development at the U.S. Naval Research Laboratory in Washington, D.C., the Defense Advanced Research Projects Agency in Arlington, Virginia, and the National Aeronautics and Space Administration Goddard Space Flight Center in Greenbelt, Maryland. From 1989 through 2006, Nozette held security clearances as high as Top Secret and had regular, frequent access to classified information and documents related to the U.S. national defense.

According to the affidavit, on Sept. 3, 2009, Nozette was contacted via telephone by an individual purporting to be an Israeli intelligence officer, but who was in fact an undercover employee of the FBI (UCE). During that call, Nozette agreed to meet with the UCE later that day at a hotel in Washington D.C. According to the affidavit, Nozette met with the UCE that day and discussed his willingness to work for Israeli intelligence.

Nozette allegedly informed the UCE that he had, in the past, held top security clearances and had access to U.S. satellite information. Nozette also allegedly said that he would be willing to answer questions about this information in exchange for money. The UCE explained to Nozette that the Israeli intelligence agency, or "Mossad," would arrange for a communication system so that Nozette could pass information to the Mossad in a post office box. Nozette agreed to provide regular, continuing information to the UCE and asked for an Israeli passport

According to the affidavit, Nozette and the UCE met again on Sept. 4, 2009, in the same hotel. During the meeting, Nozette allegedly informed the UCE that, although he no longer had legal access to any classified information at a U.S. government facility, he could, nonetheless, recall the classified information to which he had been granted access, indicating that it was all still in his head. In the meeting, Nozette allegedly asked when he could expect to receive his first payment, specifying that he preferred to receive cash amounts "under ten thousand" so he didn’t have to report it. At the conclusion of this meeting, Nozette allegedly informed the UCE, "Well I should tell you my first need is that they should figure out how to pay me . . . they don't expect me to do this for free."

On or about Sept. 10, 2009, undercover FBI agents left a letter in the designated post office box for Nozette. In the letter, the FBI asked Nozette to answer a list of questions concerning U.S. satellite information. The undercover agents also provided a $2,000 cash payment for Nozette. The serial numbers of the bills were recorded. Nozette retrieved the questions and the money from the post office the same day.

On or about Sept. 16, 2009, Nozette was captured on videotape leaving a manila envelope in the designated post office box in the District of Columbia. The next day, FBI agents retrieved the sealed manila envelope that Nozette had dropped off and found, among other things, a one-page document containing answers to the questions posed by the undercover agents and an encrypted computer thumb drive. One of answers provided by Nozette contained information classified as Secret, which concerned capabilities of a prototype overhead collection system. In addition, Nozette allegedly offered to reveal additional classified information that directly concerned nuclear weaponry, military spacecraft or satellites, and other major weapons systems.

Also on or about Sept. 17, 2009, undercover FBI agents left a second letter in the post office box for Nozette. In the letter, the FBI asked Nozette to answer another list of questions concerning U.S. satellite information. The FBI also left a cash payment of $9,000 in the post office box. Nozette allegedly retrieved the questions and the money from the post office box later that same day.

On or about October 1, 2009, Nozette was filmed on videotape leaving a manila envelope in the post office box. Later that day, FBI agents retrieved the manila envelope left by Nozette and found a second set of answers from him. The answers contained information classified as both Top Secret and Secret that concerned U.S. satellites, early warning systems, means of defense or retaliation against large-scale attack, communications intelligence information, and major elements of defense strategy.

This investigation was conducted by the FBI’s Washington Field Office with assistance from the Naval Criminal Investigative Service and the Air Force Office of Special Investigations.

The prosecution is being handled by Trial Attorneys Deborah A. Curtis and Heather M. Schmidt, from the Counterespionage Section of the Justice Department’s National Security Division, and Assistant U.S. Attorney Anthony Asuncion, from the U.S. Attorney’s Office for the District of Columbia.

The public is reminded that a criminal complaint contains mere allegations and that every defendant is presumed innocent unless and until proven guilty.

WASHINGTON – Pine Hills Kiddie Garden of Fort Wayne, Ind., will take necessary steps to ensure that a child’s diabetes care is integrated into the usual routine of its day care center and programs as part of a settlement to resolve allegations that it discriminated on the basis of disability, the Justice Department announced today.

The settlement resolves a complaint filed by a parent of a six-year-old girl with Type I diabetes, alleging that Pine Hills refused in 2007 to permit the girl to participate in field trips as part of the summer program unless she was accompanied by a parent or a medically trained person hired by the parent. The complaint was filed under title III of the Americans with Disabilities Act (ADA).

"Parents of children with Type I diabetes deserve the comfort of knowing that their children will not be subjected to discrimination because of their illness. A day care center is required to evaluate and make reasonable modifications for children with diabetes," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "We commend Pine Hills Kiddie Garden for working cooperatively with the Department on today’s settlement, which will ensure equal opportunity for children with diabetes in the day care center."

 

Under the settlement, Pine Hills agrees to provide all children with diabetes with an equal opportunity to attend the center and to participate in all programs, services or activities. It will evaluate the application of each child with diabetes applying to attend the center, on a case by case basis, and will make reasonable modifications to permit children with diabetes to attend the center. Modifications include, but are not limited to, supervising and monitoring of children with diabetes while using blood tests, insulin pumps, syringes or other diabetes related equipment or while consuming of food while participating in a program. Pine Hills also agrees to pay $10,000 in compensatory damages and $10,000 in civil penalties.

Under the settlement, Pine Hills submits that it has made and continues to make a practice of many of the policies outlined in the agreement and that it incorporates additional policies suggested by the Justice Department.

People interested in finding out more about the ADA or the agreement can call the Justice Department's toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY) or access its ADA Web site at www.ada.gov.

WASHINGTON – Mylan Pharmaceuticals, UDL Laboratories, AstraZeneca Pharmaceuticals and Ortho McNeil Pharmaceutical have entered into settlement agreements for a total of $124 million to resolve claims that they violated the False Claims Act by failing to pay appropriate rebates to state Medicaid programs for drugs paid for by those programs, the Justice Department announced today.

The Medicaid Prescription Drug Rebate Program was enacted by Congress in 1990 out of concern for the costs the Medicaid was paying for outpatient drugs. By agreeing to participate in the Medicaid Rebate Program and signing these rebate agreements, the four companies agreed to pay quarterly rebates to Medicaid that were based upon the amount of money that health care program paid for each company’s drugs. The precise amount of a rebate is determined in part by whether a drug is considered an "innovator" drug or a "non-innovator" drug. The rebate that must be paid for innovator drugs is higher than the rebate for non-innovator drugs.

Each of the companies agreed to pay a settlement to resolve allegations that it had sold innovator drugs that were manufactured by other companies and had classified those drugs as non-innovator drugs for Medicaid rebate purposes. As a result of the improper classification of these drugs, the companies underpaid their rebate obligations under the Medicaid Rebate Program.

Mylan and UDL agreed to pay $118 million to resolve allegations that they underpaid their rebate obligations with respect to several Mylan drugs (nifedipine extended release tablets, flecainide acetate, selegiline HCL, Orphenadrine Citrate Aspirin and Caffeine tablets, Triamterene/Hydrochlorothiazide, Propoxyphene HCL, Propoxyphene HCL/Aspirin/Caffeine, Prophyxphene Napsylate/Acetaminophen, Ibuprofen tablets, Bumetanide, Cephalexin and Cefactor) and several UDL drugs (nifedipine extended release tablets, selegiline HCL, Triamterene & HCTZ, Propox Naps & APAP, Flecainide Acetate, Trihexyphenidyl, Ranitidine HCL syrup, Sucralfate Suspension, Selegiline HCL and Bumetanide). Because the Medicaid program is funded by both the federal and state governments, the federal government received $60,896,476.00, the states $49,824,389.00 of the settlement amount and $7,279,135.00 will be paid to entities that participated in the Public Health Service’s Drug Pricing Program.

Separately, AstraZeneca paid $2.6 million ($1.43 million to the federal government and $1.17 million to the states) to resolve allegations that it underpaid its rebate obligations with respect to Albuterol. Ortho McNeil paid $3.4 million ($1.87 million to the federal government and $1.53 million to the states) to resolve allegations that it underpaid its rebate obligations with respect to Dermatop.

"The Civil Division will continue to work with our state partners to ensure that Medicaid programs, which provide health care to more than 58 million Americans, receives the same discounts that any larger insurer gets," Tony West, Assistant Attorney General for the Civil Division, said. "These cases exemplify the strong cooperation between the Department of Justice and the states in protecting American taxpayers."

This case was brought under the False Claims Act, which allows for private persons to file suits on behalf of the government. The whistleblower, Ven-A-Care, a corporation located in Key West, Fla. will receive a total of $10,787,392 as its share of today’s recovery.

"These settlements are the culmination of several years of hard work on the part of the government’s investigators and attorneys," said John P. Kacavas, U.S. Attorney for the District of New Hampshire. " The settlement with Mylan and UDL is the largest health care fraud recovery that the U.S. Attorney’s Office in New Hampshire has ever obtained. The settlements show that the government is committed to identifying health care fraud and ensuring that companies that benefit from doing business with the government agree to play by the rules."

This case was handled by the U.S. Attorney’s Office for the District of New Hampshire and the Commercial Litigation Branch of the Justice Department’s Civil Division with assistance from the Medicaid Fraud section within the New Hampshire Attorney General’s Office, as well as the National Association of Medicaid Fraud Control Units. The case was investigated by members of the Office of Investigations of the Office of Inspector General of the U.S. Department of Health and Human Services.

Solomon Nathaniel of Sterling Heights, Mich., pleaded guilty today in U.S. District Court in Detroit to participating in a conspiracy to defraud the Medicare program. 

In his guilty plea today, Nathaniel, 51, a licensed physical therapist, admitted that he worked as a contract therapist for Suresh Chand, a co-conspirator who pleaded guilty to similar charges on Sept. 29, 2009.  Chand owned and controlled several companies operating in the Detroit area that purported to provide physical and occupational therapy services to Medicare beneficiaries.  Nathaniel admitted that he, Chand and others created fictitious therapy files appearing to document physical and occupational therapy services provided to Medicare beneficiaries, when in fact no such services had been provided.  According to court documents, the fictitious services reflected in the files were billed to Medicare through sham Medicare providers controlled by Chand and other co-conspirators. 

According to plea documents, Chand acknowledged that in order to create the fictitious therapy files, he and his co-conspirators paid cash kickbacks and other inducements to Medicare beneficiaries in exchange for the beneficiaries’ Medicare numbers and signatures on documents falsely indicating that they had received physical or occupational therapy.  Nathaniel admitted that he was among the licensed physical or occupational therapists from whom Chand obtained signatures on fictitious "progress notes" and other documents falsely indicating that the therapists had provided services to the Medicare beneficiaries.

Nathaniel admitted that during the course of the scheme he signed approximately 1,250 fictitious physical therapy files indicating that he had provided physical therapy services to Medicare beneficiaries, when in fact he had not.  Nathanial also admitted that between approximately December 2003 and July 2006, he falsified physical therapy files that supported claims to the Medicare program totaling approximately $6,250,000.  Medicare actually paid approximately $2,875,000 on those claims.  Nathaniel acknowledged that during his participation in the scheme, he was aware that Medicare was being billed for services he falsely represented he had performed. 

The case is being prosecuted by Trial Attorneys John K. Neal and Gejaa T. Gobena of the Criminal Division’s Fraud Section and by Special Assistant U.S. Attorney Thomas W. Beimers of the Eastern District of Michigan.  The FBI and the HHS Office of Inspector General (HHS-OIG) conducted the investigation.

The case was brought as part of the Medicare Fraud Strike Force, supervised by Deputy Chief Kirk Ogrosky of the Criminal Division’s Fraud Section and U.S. Attorney Terrence Berg of the Eastern District of Michigan.  Since their inception in March 2007, Strike Force operations in four districts have resulted in indictments of 310 individuals who collectively have falsely billed the Medicare program for more than $680 million.  In addition, HHS’ Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

WASHINGTON— BASF Corporation has agreed, under a Clean Air Act settlement filed today in federal court in Beaumont, Texas, to reduce the use of refrigerant chemicals that destroy the earth’s stratospheric ozone layer, the Justice Department and the U.S. Environmental Protection Agency (EPA) announced.

The company will spend more than an estimated $250,000 to retrofit one refrigeration unit that currently uses such chemicals, replacing them with environmentally-friendly alternatives, and will either retrofit or retire two other units. BASF will also pay a civil penalty of $384,200 to resolve alleged Clean Air Act violations.

Under the settlement, BASF will replace one industrial refrigeration unit at its facility in Beaumont, and will either retrofit or retire two others at that facility. All of those units currently use hydro-chlorofluorocarbons, known as "HCFCs," which destroy stratospheric, or "good" ozone. All replacement units will be able to use only non ozone-depleting refrigerants. BASF has already replaced or retired four other refrigeration units at BASF’s facilities in Livonia, Mich.; Greenville, Ohio; and South Brunswick, N.J., at a cost of over $200,000. Combined, the measures that the company is performing will remove approximately 4,760 pounds of harmful HCFCs from their operations.

"Today’s settlement demonstrates this administration’s commitment to achieve the benefits envisioned by the Clean Air Act," said John C. Cruden, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "We are pleased that after violating important ozone protection requirements, BASF is now committed to a settlement that will bring the company into compliance with the Act’s requirements."

"Today’s settlement marks an important step in protecting the earth’s stratospheric ozone layer from the harmful effects on HCFCs," said EPA Acting Regional Administrator Lawrence E. Starfield. "EPA will continue to enforce against companies that violate the rules."

The settlement is the result of a complaint filed earlier today against BASF alleging that the company violated Clean Air Act regulations designed to protect ozone in the stratosphere by preventing excessive leaks of ozone-depleting refrigerants from industrial coolers at BASF’s plants located in Beaumont, Livonia, Mich., Greenville, Ohio, and South Brunswick and Washington, N.J.

BASF Corporation, headquartered in Florham, N.J., is the U.S. affiliate of BASF SE, Ludwigshafen, Germany. The company makes a wide variety of products, including chemicals, plastics, and agricultural products at the five plants included in the agreement.

The consent decree, lodged in the U.S. District Court for the Eastern District of Texas, is subject to a 30-day public comment period and approval by the federal court. A copy of the consent decree is available on the Justice Department Web site at http://www.usdoj.gov/enrd/open.html and on the EPA Web site at http://www.epa.gov/compliance/resources/cases/civil/caa/

Attorney General Eric Holder today announced formal guidelines for federal prosecutors in states that have enacted laws authorizing the use of marijuana for medical purposes. The guidelines make clear that the focus of federal resources should not be on individuals whose actions are in compliance with existing state laws, while underscoring that the Department will continue to prosecute people whose claims of compliance with state and local law conceal operations inconsistent with the terms, conditions, or purposes of those laws.

"It will not be a priority to use federal resources to prosecute patients with serious illnesses or their caregivers who are complying with state laws on medical marijuana, but we will not tolerate drug traffickers who hide behind claims of compliance with state law to mask activities that are clearly illegal," Holder said. "This balanced policy formalizes a sensible approach that the Department has been following since January: effectively focus our resources on serious drug traffickers while taking into account state and local laws."

The guidelines set forth examples of conduct that would show when individuals are not in clear and unambiguous compliance with applicable state law and may indicate illegal drug trafficking activity of potential federal interest, including unlawful use of firearms, violence, sales to minors, money laundering, amounts of marijuana inconsistent with purported compliance with state or local law, marketing or excessive financial gains similarly inconsistent with state or local law, illegal possession or sale of other controlled substances, and ties to criminal enterprises.

Fourteen states have enacted laws in some form addressing the use of marijuana for medical purposes. A copy of the guidelines, in a memo from Deputy Attorney General David W. Ogden to United States Attorneys, can be found here: http://blogs.usdoj.gov/blog/archives/192

WASHINGTON – The Justice Department announced this week that it has filed a lawsuit against TK Properties L.L.C., its officer, Scott Terveen, and two employees, Ann Wagner and Corey Anderson, for violating the Fair Housing Act by discriminating on the basis of race. The lawsuit, filed in the U.S. District Court of South Dakota, charges that the defendants engaged in a pattern or practice of discrimination by creating a hostile housing environment for one African- American family and two white families who were tenants at Lakeport Village Apartments in Sioux Falls, S.D.

"All Americans are guaranteed the right to live in their homes without fear of discrimination because of their race, and housing providers should know that the Department of Justice is committed to protecting that right," said the Assistant Attorney General for the Civil Rights Division, Thomas E. Perez. "We will continue to vigorously prosecute those who stand in the way of achieving the Fair Housing Act’s goal of allowing all people to live in communities that are free of racial hostility."

This lawsuit arose as a result of complaints filed with HUD by the three families. After an investigation, HUD found reasonable cause to believe that unlawful discrimination had occurred and referred the matter to the Justice Department.

"For HUD and the Department of Justice to combat housing discrimination, we need people to report it when they see it," said John Trasviña, U.S Department of Housing and Urban Development (HUD) Assistant Secretary for Fair Housing and Equal Opportunity. "That’s why it’s equally important that we enforce the law against anyone who attempts to intimidate those who report discrimination or who assists others trying to exercise their rights."

The suit seeks a court order declaring that defendants’ actions violate the Fair Housing Act, prohibiting future discrimination by the defendants, awarding monetary damages to all persons harmed by the defendants’ discriminatory practices and assessing a civil penalty to vindicate the public interest.

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

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

 

Former General Services Administration (GSA) Chief of Staff David H. Safavian was sentenced today to one year in prison on charges of obstruction of justice and making false statements in connection with the investigation into the activities of former Washington lobbyist Jack Abramoff.

In addition to the prison term, Safavian was sentenced today to two years of supervised release by U.S. District Court Judge Paul L. Friedman of the District of Columbia.

Safavian was found guilty by a federal jury in June 2006 of obstruction of justice and making false statements, but the verdicts were later vacated by the Court of Appeals for the D.C. Circuit and remanded for a new trial. A federal jury once again convicted Safavian of one count of obstruction of justice and three counts of making false statements on Dec. 19, 2008.

The jury in the second trial heard evidence that while Safavian assisted Abramoff in connection with the lobbyist’s attempts to acquire GSA-controlled properties, Abramoff took him on a luxury golf trip to Scotland and to London. The jury found that over the span of three years, Safavian made false statements in an attempt to conceal the fact that around the time of the golf trip he aided Abramoff with business before the GSA. The false statements included statements made to a GSA ethics officer and a GSA Office of Inspector General (GSA-OIG) Special Agent as well as falsely certifying a financial disclosure form.

The jury heard evidence at trial that Safavian’s efforts to cover up the assistance he provided Abramoff continued after he left the GSA in November 2004 to become the Administrator for the Office of Federal Procurement Policy at the Office of Management and Budget. The jury found that in May 2005, Safavian made false statements to an FBI Special Agent investigating Abramoff’s lobbying activities. According to evidence introduced at trial, Safavian told the FBI agent that he was unable to assist Abramoff with GSA-related activities around the time of the golf trip because he was a new employee at GSA.

Abramoff pleaded guilty in January 2006 to charges of conspiracy, honest services mail fraud and tax evasion and was sentenced in September 2008 to four years in prison in addition to the 22 months he served prior to the sentencing date. 

To date, 20 individuals, including lobbyists and public officials, have pleaded guilty, been convicted at trial, or are awaiting trial in connection with the ongoing investigation into the activities of Abramoff and his associates.

The case was prosecuted by Senior Litigation Counsel Nathaniel B. Edmonds and Trial Attorney Albert Stieglitz Jr. of the Criminal Division’s Fraud Section and Trial Attorney Justin V. Shur of the Criminal Division’s Public Integrity Section. The investigation of this case was led by the FBI with assistance from the GSA-OIG. The ongoing investigation of the Abramoff matter is being led by the FBI.

WASHINGTON – The Justice Department announced that a federal district court in Richmond, Va., ruled yesterday that Virginia violated the voting rights of American military personnel and other overseas citizens by failing to mail absentee ballots in sufficient time for them to be counted in the Nov. 4, 2008, general election.

Ruling in a 2008 lawsuit by the Justice Department, U.S. District Court Judge Richard L. Williams declared that Virginia’s failure to mail more than 2,000 absentee ballots at least 30 days prior to the election violated the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA), a federal law that guarantees military personnel and other citizens living abroad the right to vote by absentee ballot in federal elections.

Judge Williams wrote in his ruling: "The right to vote means a right to cast a ballot that will be counted." As a result, the court held that Virginia’s failure to mail absentee ballots to its military and overseas voters sufficiently in advance of the election "offended these voters’ prized right to vote in a federal election[.]"

To remedy this violation of federal law, the Court ordered the Commonwealth to count all otherwise proper ballots received by the Commonwealth within 30 days after the election. The case will remain open for a determination of what relief is needed to ensure that Virginia complies with UOCAVA in future federal elections.

"The men and women who bravely put their lives on the line to serve their nation deserve, at the very least, to know that their votes will be counted, and their voices will be heard," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "I am gratified the Court acted so decisively to uphold the right of those serving our country in uniform and other citizens living abroad to vote, and I applaud the attorneys and staff in the Voting Section for their hard work on this case to protect that right."

UOCAVA requires states to allow uniformed service members and overseas citizens to register to vote and to vote absentee for all elections for federal office. The Justice Department has brought numerous suits under UOCAVA to ensure that voters are not deprived of an opportunity to vote due to late mailing of absentee ballots by election officials.

More information about UOCAVA and other federal voting laws is available on the Department of Justice Web site at http://www.justice.gov/crt/voting/misc/activ_uoc.htm. Complaints about discriminatory voting practices may be reported to the Voting Section of the Civil Rights Division at 1-800-253-3931.

WASHINGTON - A federal judge in St. George, Utah, has permanently enjoined Kent Bickmore, the founder of a so-called asset-protection business, from helping customers file fraudulent liens and create hidden nominee bank accounts, the Justice Department announced today. Bickmore agreed to the injunction without admitting the government’s allegations.

The government’s complaint alleged that Bickmore of St. George, Utah, operated the now-defunct Asset Protection Plus Inc., which helped customers place sham liens on their property to deceive creditors, including the Internal Revenue Service. Bickmore and Asset Protection also allegedly helped customers hide their income and assets by holding their money in bank accounts under nominee names.

In the past decade, the Justice Department’s Tax Division has obtained more than 430 injunctions against tax fraud promoters and tax return preparers. Information about these cases is available on the Justice Department’s Web site, as is information about the Justice Department’s Tax Division.

WASHINGTON – Panagiotis Lekkas, the captain of the cargo ship, M/V Theotokos, was sentenced today in federal court in New Orleans to 10 months confinement, the Justice Department announced. Lekkas pleaded guilty on July 15, 2009, to one count of obstruction of justice, one count of violating the Act to Prevent Pollution from Ships, and two counts of violating the Ports and Waterways Safety Act.

According to the sentence, Lekkas will serve the 10-month confinement as follows: six months in prison, followed by four months in a community confinement facility in Louisiana. Lekkas must also pay a fine of $4,000.

The sentence requires Lekkas to depart the United States within 72 hours after release from community confinement and thereafter be banned from entering the U.S., U.S. ports, or being present upon a vessel that enters into the territorial waters of the United States for a term of three years. Lekkas acknowledged that even after the three year ban, his entry into the United States could be barred by the Department of State or the Department of Homeland Security based on those departments’ own objective criteria for exclusion or visa denial.

"This sentence including the three year ban from U.S. territorial water sends the message to ship crewmembers and captains that violating environmental and ship safety laws will have consequences. We are serious and we will continue to prosecute these cases and seek sentences that appropriately punish the crime," said John C. Cruden, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.

"I want to extend my appreciation to the Environment and Natural Resources Division of the Department of Justice and the United States Coast Guard for their excellent work in this, as well as other environmental investigations," said Jim Letten, U.S Attorney for the Eastern District of Louisiana. "We will continue to work with our partners to punish and deter environmental abuses by violators. Clean water is vital to the New Orleans region and the citizens whose absolute right to a clean and healthful environment must not be threatened."

In a related matter, Polembros Shipping Ltd., Lekkas’ employer and the managing company of the Theotokos, pleaded guilty on Sept. 30, 2009, to violating two counts of the Act to Prevent Pollution from Ships, one count of violating the Nonindigenous Aquatic Nuisance Prevention and Control Act, one count of violating the Ports of Waterways Safety Act, and one false statements count. Polembros is scheduled to be sentenced on Dec. 9, 2009.

The case was investigated by the U.S. Coast Guard Investigative Service with assistance from inspectors from Sector New Orleans as well as legal assistance from U.S. Coast Guard in New Orleans and at headquarters in Washington, D.C. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section along with Dorothy Taylor of the U.S. Attorney’s Office in New Orleans. 

WASHINGTON - Roy W. Bradford of Ludlow Falls, Ohio, was indicted on two counts of filing a false tax return and one count of corruptly endeavoring to impede the Internal Revenue Service (IRS), the Justice Department and IRS announced today.

According to the indictment, Bradford, who owned and operated Bradford Builders which built wooden frames for residential construction, filed false tax returns for 2003 and 2004 that inflated his labor costs and understated his income. As a result, Bradford allegedly claimed less net profit and taxable income than he actually earned.

According to the indictment, Bradford corruptly endeavored to impede the IRS in several ways. Bradford filed Forms 1099 informational tax returns which inflated the amounts that he actually paid his workers. In addition, Bradford filed Forms 1099 which contained tax identification numbers for the workers that he knew were false. Bradford also sometimes paid the girlfriends or wives of his workers because of each worker’s immigration status and then filed false Forms 1099 stating that the girlfriends or wives worked for him. Additionally, during the civil audit and criminal investigation, Bradford provided documents and made statements to the IRS that he knew were false.

An indictment is merely a formal charge by the grand jury. The defendant is presumed innocent unless and until proven guilty in U.S. district court.

If convicted, Bradford faces a maximum sentence of nine years in prison and a $750,000 fine.

The case is being prosecuted by Justice Department Tax Division Trial Attorney Jerrod Patterson and Assistant U.S. Attorney Vipal Patel. The case was investigation by IRS-Criminal Investigation.

Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at http://www.usdoj.gov/tax.

WASHINGTON—MFG Chemical Inc. has agreed to pay $270,000 in civil penalties to resolve claims resulting from a toxic release on April 12, 2004 of extremely hazardous chemicals at the company’s Dalton, Ga., plant, the Justice Department announced today.

The toxic release resulted from a runaway reaction at the plant when MFG, upon its initial production run for triallyl cyanuarate, mixed allyl alcohol with other chemicals, leading to an extreme increase in temperature and causing an explosion that released toxic gases to the atmosphere.

As a result, the surrounding community within a half mile radius of the MFG plant was evacuated. Over 150 people, including several emergency responders, were treated for exposure at the local hospital. One-half mile of vegetation south of the MFG plant was also burned and much of the aquatic life was killed throughout several miles of surrounding creeks which were contaminated by the water sprayed on the toxic vapor cloud in an attempt to control the vapor release.

The complaint, filed today in U.S. District Court for the Northern District of Georgia, alleges that MFG failed to adhere to the Clean Air Act’s general duty of care provision. The general duty of care requirement obligates companies handling extremely hazardous substances to take preventative measures to identify the risks involved and to reduce the risks by providing layers of protection on their equipment such as high temperature alarms, automatic feed shut off mechanisms, adequate pressure relief systems and a vapor release recovery and containment system. The complaint alleges MFG failed to identify the risk of a runaway reaction through its failure to calculate the temperature/time profile and to have appropriate layers of protection in place prior to the incident.

MFG has implemented measures to address conditions at the plant contributing to the explosion and release, including halting the use of allyl alcohol and hiring an experienced safety engineer to oversee its compliance with its Clean Air Act obligations. MFG also paid for the clean up of surrounding contaminated creeks. The $270,000 reflects the civil penalty that the United States determined MFG has the financial ability to pay.

Copies of the stipulation of settlement are available on the Department of Justice Web site at: http://www.usdoj.gov/enrd/Consent_Decrees.html .

WASHINGTON— The United States has reached a settlement with ranchers in a longstanding dispute over livestock trespasses on public lands in Nye and Esmeralda Counties, Nev., the Justice Department and Bureau of Land Management (BLM) announced today.

As part of the settlement, Benjamin J. Colvin and Colvin Cattle Company acknowledged past unauthorized grazing on federal government lands and agreed to comply with federal grazing laws and regulations in the future.

The settlement partially resolves a lawsuit, filed in August 2007 in U.S. District Court for the District of Nevada, that alleged the Estate of E. Wayne Hage, Wayne N. Hage, Benjamin J. Colvin and Colvin Cattle Co. intentionally grazed cattle on multiple occasions on federally managed lands and that the Estate of E. Wayne Hage and Wayne N. Hage also placed livestock "leased" from other ranchers onto lands owned by the United States for grazing purposes.

"After many years of disputes and litigation over unauthorized livestock grazing on federal lands in Nevada, we are pleased to reach a settlement that will protect the federal lands from such unauthorized uses in the future," said John C. Cruden, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.

"The BLM is very pleased that a settlement was reached to resolve the government’s claims against Ben Colvin," said Jerry Smith, District Manager of the Battle Mountain BLM District.

Under the settlement Colvin also paid a fine of $34,000 to fully resolve past grazing and realty trespass damages, and agreed to remove his range improvements from the public lands. Upon Colvin’s compliance with these requirements, the federal government agreed that it will consider Mr. Colvin as it would any other grazing permit applicant in the future.

As a result of the agreement, on Oct 14, 2009, the U.S. District Court for the District of Nevada granted a jointly filed motion for partial dismissal, which dismisses Benjamin J. Colvin and the Colvin Cattle Company from the federal lawsuit as well as a counterclaim filed by Colvin Cattle Company. No settlement has yet been reached with the remaining defendants in this case.

The Bureau of Land Management has the authority to manage, administer, and protect federal lands including regulating grazing under the Taylor Grazing Act of 1934 and the Federal Land Policy and Management Act of 1976.

WASHINGTON—Gunther Wenzek, a German national, pleaded guilty today before District Judge Anna J. Brown, of the U.S. District Court for the District of Oregon, to one count of smuggling coral into the United States at the port of Portland, Ore., the Justice Department announced.

A grand jury in Portland indicted Wenzek in July 2008. Law enforcement officials arrested Wenzek in February 2009 when he entered the United States at Dulles airport outside of Washington, D.C., en route to a pet exposition in Orlando, Fla. Wenzek has been detained under a third party custodian release agreement since February. Sentencing is scheduled for Jan. 5, 2010 at 1:30 p.m. PT.

Wenzek owns a company named CoraPet, based in Essen, Germany that sells various coral products to retailers in the United States. Customs agents seized two full containers of coral shipped by Wenzek to a customer in Portland. These two shipments made up a total of over 40 tonsof coral.

The corals seized have been identified as corals from the scientific order Scleractinia, genera Porites, Acropora, and Pocillopora, common to Philippine reefs. Due to the threat of extinction, stony corals, such as those seized in this case are protected by international law. Philippine law specifically forbids exports of all coral. Moreover, the Convention on International Trade in Endangered Species (CITES) bars importation of the coral Wenzek tried to import to customers in the United States, without filling out proper customs forms or permits.

The removal of dead coral and live rock is of major concern for coral reefs, including those reefs protecting coastal communities from storms. These corals are the fundamental building blocks of the coral reef ecosystem. Unsustainable collection of coral frequently results in the loss of important nursery areas, feeding grounds, refuge for fish and invertebrates, and increased erosion of reef systems.

"This guilty plea is one example of the United States’ coordinated efforts, including the work of multiple law enforcement agencies, to protect coral reefs and marine ecosystems both domestically and internationally," said John C. Cruden, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "Preventing the further decline of coral reefs through strong enforcement of our nation’s environmental laws is paramount in preserving marine environments and fisheries."

"We will not allow criminals to profit from the illegal devastation of the world’s coral reefs," said Kent Robinson, Acting United States Attorney for the District of Oregon. "The assistance of the Philippine government was absolutely critical to the success of this case, and we thank the government and people of the Philippines for their vital help in protecting marine resources."

"This activity has an immeasurable negative impact on our shrinking resources in the world," said Paul Chang, Special Agent in Charge of Law Enforcement for the U.S. Fish and Wildlife Service's Pacific Region, based in Portland.

"Our national and the international marine resources are important to all of us and this is a fine example of federal agencies working together to protect those resources," said Special Agent in Charge Vicki Nomura, National Marine Fisheries Service, Office of Law Enforcement.

The case was investigated by the U.S. Fish and Wildlife Service, U.S. Immigration and Customs Enforcement, and the National Marine Fisheries Service. The case is being prosecuted by Assistant United States Attorney, Dwight Holton from the District of Oregon and Senior Trial Attorney J. Ronald Sutcliffe of the Justice Department’s Environmental Crimes Section, with assistance from the Southern District of Florida, AUSA, Tom Watts-FitzGerald.

WASHINGTON – A packaged-ice company, headquartered in St. Paul, Minn., has agreed to plead guilty and to pay a $9 million criminal fine for allocating customers, the Department of Justice announced today. In addition, three of the company’s former executives pleaded guilty for their roles in the conspiracy to allocate customers.

According to a one-count felony charge filed under seal on Sept. 10, 2009, and unsealed today in the U.S. District Court in Cincinnati, Arctic Glacier International Inc. engaged in a conspiracy to suppress and eliminate competition by allocating packaged-ice customers in the Detroit metropolitan area and southeastern Michigan, beginning Jan. 1, 2001, and continuing until at least July 17, 2007. Under the plea agreement, which must be approved by the court, Arctic Glacier has agreed to cooperate with the Department’s ongoing investigation.

According to separate one-count felony charges, also filed under seal on Sept. 10, 2009, and unsealed today in the U.S. District Court in Cincinnati, Frank Larson, Arctic Glacier’s former senior vice president of operations, and Keith Corbin, the company’s former vice president of sales and marketing, participated in the same conspiracy beginning at least as early as March 1, 2005, and continuing at least until July 17, 2007. According to an additional one-count felony charge filed under seal on Sept. 10, 2009, in the U.S. District Court in Cincinnati and unsealed today, Gary Cooley, the company’s former vice president of sales and marketing, also participated in the conspiracy from at least as early as June 1, 2006, until July 17, 2007. Under the three separate plea agreements, which must be approved by the court, the former executives have agreed to cooperate with the Department’s ongoing investigation.

In court documents, the Department said that the three former executives and Arctic Glacier, conspired with another packaged-ice competitor to allocate packaged-ice customers in southeastern Michigan and the Detroit metropolitan areas. As a part of the conspiracy, Arctic Glacier, its former executives and other co-conspirators exchanged information for the purpose of monitoring and enforcing adherence to the agreed customer allocations and refrained from competing for the allocated customers.

Arctic Glacier, Larson, Corbin and Cooley are each charged with allocating packaged-ice customers in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and a $100 million fine for corporations. The maximum fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either of those amounts is greater than the Sherman Act maximum fines.

These charges stem from an ongoing antitrust investigation into the packaged-ice industry. As a part of the same investigation, Home City Ice Company pleaded guilty on June 17, 2008, for its participation in a conspiracy to allocate customers and territories in the packaged-ice industry. The investigation is being conducted by the Antitrust Division’s Cleveland Field Office and by FBI offices in Ann Arbor, Mich.; Indianapolis, Ind.; Dallas, Texas; and Cincinnati and Toledo, Ohio.

Anyone with information concerning customer or territorial allocation agreements, or other anticompetitive conduct in the packaged-ice industry, should contact the Cleveland Field Office of the Antitrust Division at 216-687-8400.

WASHINGTON – Marcel J. Toto-Ngosso of Silver Spring, Md., was sentenced to 70 months in prison today for preparing and filing false tax returns in connection with a scheme to generate fraudulent tax refunds for his clients, the Justice Department and Internal Revenue Service (IRS) announced. U.S. District Judge Roger W. Titus also ordered Toto-Ngosso to pay $238,788.25 in restitution.

In June 2009, following a four-day trial in Greenbelt, Md., Toto-Ngosso was convicted of 17 counts of aiding and assisting in the preparation and filing of false tax returns. According to the indictment and evidence introduced during trial, Toto-Ngosso ran a tax preparation business from his home. From at least 1998 through 2007, Toto-Ngosso prepared false tax returns for clients claiming fraudulent deductions and adjustments, including false dependents, inflated charitable contributions, and false unreimbursed employee expenses, such as vehicle expenses, which he knew his clients were not entitled to claim.

According to evidence introduced at trial, Toto-Ngosso obtained the names and social security numbers of individuals, which he later sold to his clients as dependents and qualifying persons for $500 to $800 each. Toto-Ngosso then used these names and social security numbers on his clients’ tax returns to secure larger refunds.

According to evidence introduced at trial, after Toto-Ngosso learned he was under investigation by the IRS, he attempted to obstruct the investigation by telling his clients to lie about the information that he reported on their tax returns.

"As today’s sentence shows, fraudulent tax return preparers face serious consequences, including jail time," said John A. DiCicco, Acting Assistant Attorney General of the Tax Division. "This case also demonstrates why taxpayers should carefully review their individual income tax returns before signing and filing their returns with the IRS."

"Tax return preparers help Americans with one of their biggest financial transactions each year. We must ensure that all preparers are ethical and provide good service," said IRS Criminal Investigation Chief Eileen Mayer. "Today’s sentence signals our determination to ensure the tax preparation industry is on board with our overall goals to strengthen the tax system."

Two associates of Toto-Ngosso, Maude H. Veney and Francois B. Zame, testified for the government at his trial. Veney pleaded guilty to conspiracy to file false claims and was sentenced to 18 months of probations by Judge Titus in September 2009. Zame pleaded guilty to aiding or assisting in filing a false tax return and was sentenced by Judge Titus to five months in prison in September 2009.

Acting Assistant Attorney General DiCicco thanked the U.S. Attorney’s Office in Greenbelt, Md., and commended IRS Criminal Investigation special agents who investigated the case, as well as Tax Division trial attorneys Jorge Almonte and Tino Lisella who prosecuted the case.

WASHINGTON – A Louisiana man pleaded guilty today to firing three shots from a shotgun at the home of three Hispanic men and, after they fled, entering the home and setting a fire that burned it to the ground, the Justice Department announced. Johnny D. Mathis, 46, of Lecompte, La., entered his plea minutes before a jury trial was set to begin before U.S. District Judge Dee Drell in Alexandria, La.

Mathis pleaded guilty to all three counts in the pending indictment: criminal interference with the right to fair housing; use of fire to commit a felony; and use of a firearm during a crime of violence. Each count carries a maximum penalty of ten years in prison, a $250,000 fine, or both. Furthermore, the ten year penalties for use of fire to commit a felony and use of a firearm during a crime of violence are mandatory, meaning that Mathis now faces a maximum sentence of 30 years and a mandatory minimum of 20 years in prison. Sentencing is scheduled for Jan. 13, 2010.

Testimony at today’s guilty plea hearing established that on June 15, 2008, Mathis fired three shots from a shotgun at the home of three Hispanic men who shared the residence in a rural area of western Louisiana. Mathis’ home was across the street from the victims’ house. After hearing two shots, the victims fled their house. Once outside, the victims watched as Mathis fired a third shot into the trees and then entered the house, left briefly, and then returned. Minutes later, the house was engulfed in flames as Mathis exited the house. Subsequent investigation determined that the fire started in the kitchen where the victims had seen Mathis. Mathis admitted that his crime was motivated by the victims’ race and national origin and was intended to interfere with their right to live in their home.

"Motivated by hate, the defendant fired a shotgun at a home that he later entered and burned down. No one should have to endure such an abhorrent act of criminal violence," said Assistant Attorney General Thomas E. Perez of the Civil Rights Division. "The Justice Department will vigorously prosecute cases of bias motivated violence to the full extent of the law."

U.S. Attorney Donald Washington stated: "These victims were targeted and subjected to acts of violence for no other reason than their race and national origin. We will continue to vigorously enforce federal laws that guarantee the civil rights of all people."

This matter was investigated jointly by the FBI and the Rapides Parish, La., Sheriff’s Office. The case was prosecuted by Michael J. Frank, a Trial Attorney with the Justice Department’s Civil Rights Division, and Assistant U.S. Attorney Mary J. Mudrick of the U.S. Attorney’s Office for the Western District of Louisiana.

WASHINGTON – The Department of Justice announced today that it will require AT&T Inc. (AT&T) to divest assets in eight areas in Louisiana and Mississippi in order to proceed with its $944 million acquisition of Centennial Communications Corp. (Centennial). The Department said that the transaction, as originally proposed, would substantially lessen competition to the detriment of consumers of mobile wireless telecommunications services in those areas, and likely would result in higher prices, lower quality and reduced network investments. The divestitures cover portions of southwestern and central Louisiana and southwestern Mississippi.

The Department’s Antitrust Division, along with the Attorney General of Louisiana, filed a civil lawsuit today in U.S. District Court for the District of Columbia to block the proposed acquisition of Centennial by AT&T. At the same time, the Department and the Louisiana Attorney General filed a proposed settlement that, if approved by the court, would resolve the competitive concerns in the lawsuit.

"These divestitures are necessary to preserve the benefits of competition for wireless customers in these areas of Louisiana and Mississippi," said Christine A. Varney, Assistant Attorney General in charge of the Department’s Antitrust Division.

According to the complaint, AT&T and Centennial are each other’s closest competitor for a significant set of customers in eight Cellular Marketing Areas (CMAs), as defined by the Federal Communications Commission (FCC). The complaint alleges that the proposed transaction would substantially reduce competition for mobile wireless telecommunications services in each of these areas. The proposed settlement requires divestitures in these areas to eliminate the competitive concerns.

AT&T is the second largest mobile wireless telecommunications services provider in the United States as measured by subscribers, serving almost 80 million subscribers throughout all 50 states. In 2008, AT&T earned mobile wireless telecommunications services revenues of approximately $44 billion. Centennial is the eighth largest mobile wireless telecommunications services provider in the United States as measured by subscribers, and provides mobile wireless telecommunications services to approximately 1.1 million wireless subscribers in six states, Puerto Rico, and the U.S. Virgin Islands. In 2008, Centennial earned approximately $1 billion in total revenues.

The transaction also is subject to review by the FCC. The Department has cooperated with the FCC’s separate review of this matter.

As required by the Tunney Act, the proposed settlement, along with the Department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Nancy M. Goodman, Chief, Telecommunications and Media Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed settlement upon finding that it is in the public interest.

WASHINGTON – AT&T Missouri (formerly known as Southwestern Bell Telephone L.P.) has agreed to pay the United States $1.4 million as part of a settlement of a civil lawsuit alleging that the company violated the False Claims Act in connection with the Federal Communications Commission's E-Rate program, the Justice Department announced today.

The E-Rate program, which Congress created in the Telecommunications Act of 1996, provides funding for needy schools and libraries to connect to and utilize the Internet. Under the program, which is supported by fees collected from telephone users, schools apply for funds to pay for hardware and monthly connectivity service fees.

The United States contended that AT&T Missouri provided false information to the E-Rate program and otherwise violated the program’s requirements by engaging in non-competitive bidding practices for E-Rate contracts. The United States further alleged that AT&T Missouri employees colluded with officials in the Kansas City, Mo., School District to award contracts to the company, extended contracts in violation of E-Rate rules and provided meals and other inducements to school district employees. The United States previously filed suit against and settled with the Kansas City, Mo., School District.

These allegations arose from a False Claims Act lawsuit filed in Missouri federal court by American Fiber Systems Inc., which submitted an unsuccessful bid to the Kansas City, Mo., School District for the E-Rate contracts that were awarded to AT&T Missouri. The False Claims Act allows private parties to bring fraud claims on behalf of the United States and to share in the proceeds of any recovery. American Fiber Systems Inc.’s share of the settlement will amount to $195,000.

"The E-Rate program provides critical support for Internet access to the most under-served schools in the nation," said Tony West, Assistant Attorney General for the Department of Justice’s Civil Division. "Working with our partners at the FCC’s Office of the Inspector General, the Department of Justice is committed to ensuring that this important program, which benefits our neediest children, not be misused by those seeking to defraud the public."

The Justice Department’s Civil Division, with assistance from the FCC’s Office of the Inspector General, handled the investigation and settlement of this matter. The case is entitled U.S. ex rel. American Fiber Systems, Inc. v. Southwestern Bell Telephone Co. (d/b/a AT&T Missouri), Case No.: 06-0389 – CV – W – HFS (W.D. Mo.).

WASHINGTON — The Department of Justice today announced that two detainees have been transferred from the detention facility at Guantanamo Bay to the control of the governments of Kuwait and Belgium.

As directed by the President’s Jan. 22, 2009 Executive Order, the interagency Guantanamo Review Task Force conducted a comprehensive review of each of these cases. As a result of that review, these detainees were approved for transfer from Guantanamo Bay. In accordance with Congressionally-mandated reporting requirements, the Administration informed Congress of its intent to transfer each of these detainees at least 15 days in advance.

Khalid Abdullah Mishal al Mutairi, a native of Kuwait, was transferred to the Government of Kuwait. On July 29, 2009, a federal court ruled that al Mutairi may no longer be detained under the Authorization for the Use of Military Force (AUMF) and ordered the government to release him from detention at Guantanamo Bay.

Another detainee was transferred from Guantanamo Bay to the Government of Belgium. Pursuant to a request from the Government of Belgium, the identity of this individual is being withheld for privacy reasons.

These transfers were carried out under individual arrangements between the United States and the governments of Kuwait and Belgium. The United States has coordinated with the governments of each of these nations to ensure the transfers take place under appropriate security measures and will continue to consult with these governments regarding these matters.

Since 2002, more than 550 detainees have departed Guantanamo for other countries including Albania, Algeria, Afghanistan, Australia, Bangladesh, Bahrain, Belgium, Bermuda, Chad, Denmark, Egypt, France, Iran, Iraq, Jordan, Kuwait, Libya, Maldives, Mauritania, Morocco, Pakistan, Portugal, Russia, Saudi Arabia, Spain, Sweden, Sudan, Tajikistan, Turkey, Uganda, United Kingdom and Yemen. 

WASHINGTON– The United States has asked a federal court in Kansas City, Kan., to bar Carlos Cruz, aka Carlos Ruano-Cruz, from preparing tax returns for others, the Justice Department announced today. According to the government complaint, Cruz’s business, Carlos Income Tax Services, prepares federal income tax returns for customers in the Kansas City metropolitan area that unlawfully understate income tax liabilities by under-reporting income, inflating business expenses and claiming improper deductions for nondeductible personal expenses.

The government complaint accuses Cruz of providing false advice regarding the deductibility of personal and business expenses, and unlawfully advising customers to fabricate business income in order to maximize tax refunds. According to the complaint, the Internal Revenue Service has audited at least 81 returns prepared by Cruz and found that 95 percent of those examined required adjustments to the federal income taxes owed. The complaint estimates that the tax losses from Cruz’s alleged misconduct between 2003 and 2007 could exceed $25 million.

In the past decade, the Justice Department has obtained injunctions against more than 425 tax preparers and tax fraud promoters. Information about these cases is available on the Justice Department’s Tax Division Web site.

WASHINGTON – Three Miami-Dade County, Fla., residents have been indicted in connection with an alleged $2.3 million Medicare fraud scheme operated out of X-Press Center, a Detroit-area clinic that purported to specialize in providing injection and infusion therapies, Assistant Attorney General of the Criminal Division Lanny A. Breuer, U.S. Attorney for the Eastern District of Michigan Terrence Berg and Daniel R. Levinson, Inspector General of the Department of Health & Human Services (HHS) announced today. In addition, a former manager at X-Press Center pleaded guilty to one count of conspiracy to commit health care fraud in connection with her management of the clinic.

Juan De Oleo, 49, Rosa Genao, M.D., 50, and Ingrid Mazorra, 35, were each indicted by a grand jury in Detroit with conspiracy to commit health care fraud and five counts of substantive health care fraud. Genao and Mazorra were also charged with one count of destroying records relevant to a federal investigation. In addition, De Oleo was charged with two counts of money laundering. The superseding indictment unsealed today added De Oleo, Genao and Mazorra to a pending indictment unsealed on June 24, 2009, charging seven defendants with alleged crimes related to their involvement with X-Press Center.

According to the superseding indictment, De Oleo was a part owner of X-Press Center, Genao was a physician employed at X-Press Center, and Mazorra was the clinic’s office manager. The indictment alleges that De Oleo and his co-conspirators agreed to open a fraudulent infusion and injection therapy clinic, and to split the proceeds of fraud among themselves. According to the indictment, Medicare beneficiaries received kickbacks in return for visiting the clinic and signing forms indicating that they received treatments that were medically unnecessary or never provided. The indictment also alleges that Genao and Mazorra altered, falsified and destroyed patient records to attempt to justify the medically unnecessary services that were purportedly being provided at the clinic.

The indictment alleges that De Oleo, Genao, Mazorra and their co-conspirators caused approximately $2.3 million in fraudulent billing to the Medicare program for services at X-Press Center that were medically unnecessary or never provided.

The charges of health care conspiracy and health care fraud carry a maximum sentence of 10 years in prison and a $250,000 fine, per count. The charge of destroying records carries a maximum sentence of 20 years in prison and a $250,000 fine. The money laundering charges carry a maximum penalty of 10 years in prison and a $500,000 fine, per count.

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

Also today, Dulce Briceno, 57, pleaded guilty before U.S. District Judge Ursula Ungaro in the Southern District of Florida to one count of conspiracy to commit health care fraud. In pleading guilty , Briceno admitted that in approximately September 2006, she agreed to manage the clinic on a day-to-day basis in exchange for a percentage of the profits the clinic generated. Briceno admitted that during the time the clinic was open, the clinic routinely billed the Medicare program for services that were medically unnecessary or were never provided. Briceno admitted that she and her co-conspirators at the clinic had purchased only a small fraction of the medications that the clinic billed the Medicare program for providing.

Briceno admitted that Medicare beneficiaries were not referred to X-press Center by their primary care physicians, or for any other legitimate medical purpose, but rather were recruited to come to the clinic through the payment of kickbacks. In exchange for those kickbacks, Briceno admitted that the Medicare beneficiaries would visit the clinic and sign documents indicating that they had received the services billed to Medicare. According to court documents, kickbacks paid to Medicare beneficiaries at the clinic were made in the form of cash and prescriptions for narcotic drugs.

Briceno also admitted that between approximately September 2006 and March 2007, she and her co-conspirators at X-Press Center caused the submission of approximately $2.3 million in false and fraudulent claims to the Medicare program for services purportedly provided at X-Press Center. Medicare paid approximately $1.8 million on those claims.

At her sentencing, scheduled for Jan. 15, 2010, Briceno faces a maximum of 10 years in prison and a $250,000 fine. Briceno was originally charged in the Eastern District of Michigan, but after her arrest in Miami, she consented to have her case transferred to the Southern District of Florida for her plea and sentence.

The cases are being prosecuted by Trial Attorneys John K. Neal and Benjamin D. Singer of the Criminal Division’s Fraud Section. The FBI and the HHS Office of Inspector General (HHS-OIG) conducted the investigation. The cases were brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.

Since their inception in March 2007, Strike Force operations in four districts have obtained indictments of 300 individuals who collectively have falsely billed the Medicare program for more than $680 million. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

Indictment

WASHINGTON – Daniel Lee Jones, of Portland, Ore., has been indicted and arrested for allegedly mailing a hangman’s noose to the Lima, Ohio, chapter of the National Association for the Advancement of Colored People, the Justice Department announced today.

At the time he mailed the noose for the purpose of threatening Jason Upthegrove, Jones, 32, was a regional director of a group that advocated white supremacist ideology, according to the indictment unsealed following Jones’ arrest late yesterday in Portland. Prior to mailing the noose, Jones sent hate literature to residents of Lima regarding the shooting of an African American woman by an officer employed by the Lima Police Department. Meanwhile, Upthegrove was advocating at community assemblies and to the media for equal police services for African Americans and speaking out against the hate flyers.

The indictment alleges that Jones used the U.S. Postal Service to send a package that included the noose to Upthegrove’s home for the purpose of intimidating him and interfering with his right to engage in public advocacy for equal police services for African Americans. The two-count federal indictment charges the defendant with interference with federally protected activities and mailing threatening communications. Upthegrove received the noose on Feb. 14, 2008.

"A noose is an unmistakable symbol of hatred and violence in our nation, conjuring up images of a despicable period in our history. Mailing a noose to an individual who advocates for racial equality sends a clear threat of violence," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.

"In our country, the law must protect the rights of free speech and peaceful assembly. When anyone resorts to threats of violence to abridge those sacred rights, the Department of Justice will be there," said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio.

"The FBI works tenaciously to pursue those who, by their hate-filled actions, threaten the civil rights of our citizens. The mailing of a noose into this community warranted every resource the FBI had to offer, including the outstanding work of our Laboratory Division. The people of Lima should be assured that incidents like this will not be tolerated," said C. Frank Figliuzzi, Special Agent-in-Charge of the FBI’s Cleveland Division.

If found guilty of mailing a threatening communication, Jones faces a maximum punishment of five years in prison and a potential fine of up to $250,000. If found guilty of interfering with federally protected activities, he faces a maximum punishment of one year in prison and a fine of up to $100,000.

The case was investigated by Special Agent Brian Russ of the FBI, in conjunction with Assistant U.S. Attorney David Bauer for the Northern District of Ohio, and Special Legal Counsel Barry Kowalski and Trial Attorney Shan Patel from the Justice Department’s Civil Rights Division.

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

WASHINGTON - Ryan Scott McMonigle, 37, of Ponca City, Okla., was indicted today for his alleged role in a scheme to solicit kickbacks in connection with the award of a security services subcontract to protect U.S. government personnel and contractors in Afghanistan, announced Assistant Attorney General of the Criminal Division Lanny A. Breuer, Assistant Attorney General of the Antitrust Division Christine A. Varney and U.S. Attorney for the Eastern District of Virginia Neil H. MacBride.

The U.S. Agency for International Development (USAID) is the principal federal U.S. agency that extends assistance to countries that are recovering from disaster, are trying to escape poverty and are engaging in democratic reforms. The agency works to support long-term and equitable economic growth and advance U.S. foreign policy objectives.

In August 2006, USAID awarded a $1.4 billion contract known as the Afghanistan Infrastructure Rehabilitation Project (the AIRP contract). The AIRP contract required the award of numerous subcontracts, including for the provision of security services to protect AIRP workers.

According to the indictment, McMonigle was employed from approximately February 2009 until May 2009 in Kabul, Afghanistan, by Civilian Police International, a Virginia-based company that provides law enforcement training internationally. The indictment alleges that McMonigle, Bryan Lee Burrows and others conspired to solicit kickbacks from security vendors in return for favorable treatment for those potential bidders in connection with the award of a subcontract to provide security services to protect USAID personnel and contractors in Afghanistan operating under the AIRP contract.

McMonigle is charged with one count of conspiracy to solicit a kickback and one count of aiding and abetting the solicitation of a kickback.

Burrows pleaded guilty on Sept. 2, 2009, to conspiring with others to solicit kickbacks from the security vendors in return for favorable treatment for those potential bidders in connection with the award of a security services subcontract.

If convicted, McMonigle faces up to 10 years in prison on the kickback solicitation charge and an additional five years in prison on the conspiracy charge, as well as a fine of $250,000 for each charge. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum.

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

The case is being prosecuted by Trial Attorney Bradford L. Geyer of the Criminal Division’s Fraud Section, Trial Attorneys Kimberly A. Justice and Joseph Muoio of the Antitrust Division’s Philadelphia Field Office and Assistant U.S. Attorney Timothy D. Belevetz of the U.S. Attorney’s Office for the Eastern District of Virginia. The investigation is being conducted by USAID’s Office of Inspector General as well as members of the National Procurement Fraud Task Force and the International Contract Corruption Task Force (ICCTF).

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

WASHINGTON – Assistant Attorney General Thomas E. Perez of the Civil Rights Division issued the following statement today in commemoration of National Disability Employment Awareness month.

"The Civil Rights Division is committed to ensuring that the millions of Americans with disabilities are able to live full, productive lives through access to employment and all aspects of civic life. Unfortunately, myths and falsehoods about disabilities make it far too difficult for many individuals with disabilities to secure a job," said Assistant Attorney General Perez. "The Justice Department today renews its vigilance to fairly and judiciously enforcing federal civil rights laws that prohibit discrimination on the basis of a disability. By protecting the rights of all individuals so that they can contribute to our society, we strengthen our communities and our nation as a whole. I am honored to join President Obama to commemorate National Disability Employment Awareness Month on the occasion of my return to the Justice Department."

Additionally, in recognition of National Disability Employment Awareness Month, the Civil Rights Division will:

• Join the U.S. Equal Employment Opportunity Commission (EEOC) to hold four Town Hall meetings throughout the nation to share information about the proposed ADA Amendments Act regulations and to gather comments on them.  All Town Hall meetings will consist of two sessions - one for disability advocates and one for the employer community. These sessions will be completed by November 20th. The four locations are Philadelphia, Chicago, San Francisco and New Orleans.
• Release a video produced by its Disability Rights Section that will identify and respond to a number of common myths held by employers about workers with disabilities. 

October is National Disability Employment Awareness Month. For more information about the Civil Rights Division and the laws that it enforces, please visit http://www.justice.gov/crt.

WASHINGTON – Harborside Healthcare and HHC Nutrition Services will pay the United States $1.375 million to resolve False Claims Act allegations that the company received kickbacks and assistance under the guise of a sham durable medical equipment (DME) provider, the Justice Department announced today. The government alleged that McKesson Corp., and its affiliate MediNet Corp provided the kickbacks and assistance and, in return, Harborside purchased its DME, such as non-enteral supplies, from McKesson. As part of today’s settlement, Harborside also agreed to forego $498,000 in DME claims that they had not yet been billed to Medicare.

Today’s settlement resolves allegations of the United States that this conduct violated the Anti-Kickback Statute and the False Claims Act. There is a related action pending against McKesson and MediNet in the Northern District of Mississippi that remains ongoing. In addition, the United States’ investigation of similar conduct involving other DME providers and nursing home chains is continuing.

"It is critical that Medicare providers base their DME purchasing decisions on what is in the best interests of their patients," stated Tony West, Assistant Attorney General for the Civil Division. "The Justice Department will work vigorously to ensure that these decisions about patient care are not tainted by kickbacks."

The settlement was the result of an ongoing investigation by the Justice Department’s Civil Division, the Office of Inspector General at the U.S. Department of Health and Human Services, and the U.S. Attorney’s Office for the Northern District of Mississippi.

"Our Medicare system depends upon fair competition by medical service providers. We are always vigilant to thwart sham operators, like HHC Nutrition Services," said Jim M. Greenlee, U.S. Attorney for the Northern District of Mississippi.

This action was initiated by the filing of a qui tam or whistleblower suit by Tommy Jamison. Under the False Claims Act, a private individual may bring lawsuits on behalf of the United States and receive a portion of the proceeds of any settlement. Mr. Jamison will receive $275,000 as his share of the government’s recovery.

WASHINGTON - Donald Collier, 45, was sentenced today to nine years in prison for mailing child pornography, announced Assistant Attorney General of the Criminal Division Lanny A. Breuer and Acting U.S. Attorney for the Central District of California George S. Cardona.

Collier of Carpinteria, Calif., was also sentenced today by U.S. District Court Judge George H. Wu of the Central District of California to lifetime supervised release following his prison term, and was ordered to pay a $25,000 fine.

Collier pleaded guilty on June 1, 2009, to one count of mailing child pornography. As part of his plea agreement, Collier admitted that he twice traveled to Europe in 2006, and during these trips participated in pre-arranged photo shoots during which he took pictures of seven girls who were between seven- and 14-years-old. The photo sessions were arranged by an individual in Italy who sold videos of child pornography through a Web site. Collier admitted that prior to these trips, he purchased a number of videos through this Web site. Through his plea agreement, Collier admitted that the videos he ordered and the photos he produced depicted girls either partially or fully nude and in provocative poses.

Collier also admitted that upon his return to the United States from the second European trip, he mailed a CD containing the images he produced to an individual in Europe.

Collier was identified through Operation Joint Hammer, the U.S. component of an ongoing global enforcement operation targeting transnational rings of child pornographers. The operation already has led to the arrest of more than 60 people in the United States involved in the trade of child pornography.

Operation Joint Hammer was initiated through evidence developed by European law enforcement and shared with U.S. counterparts by Europol and Interpol. The European portion of this global enforcement effort, Operation Koala, was launched after the discovery of a handful of people in Europe who were molesting children and producing photographs of that abuse for commercial gain. Further investigation unveiled a number of online child pornography rings – some of which hosted dangerous offenders who not only traded child pornography, but who themselves sexually abused children.

Law enforcement has determined that the customers of the Web site were located in nearly 30 countries around the world, including the United States.

The case was investigated by U.S. Immigration and Customs Enforcement and the U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorney Karen I. Meyer of the U.S. Attorney’s Office for the Central District of California and Trial Attorney Alexandra R. Gelber of the Criminal Division’s Child Exploitation and Obscenity Section.

WASHINGTON — A federal grand jury in Oklahoma City returned a superseding indictment against a former manager of a U.S. Department of Defense (DOD) contractor in Iraq, charging him with conspiracy to commit bribery, bribery and failing to appear in court, the Department of Justice announced today.

Elie Samir Chidiac, who is currently a fugitive, is the former Iraq site manager for Raman Corporation, a Lebanese company with an affiliate, Raman International Inc., located in Texas. According to the indictment, Chidiac participated in two conspiracies in which he bribed Army Major Theresa Jeanne Baker in connection with contracts awarded at Camp Victory, Iraq. Today’s indictment supersedes an indictment returned on Jan. 22, 2008, which charged Chidiac with two counts of conspiracy to commit bribery. Chidiac was arrested on those charges on Jan. 25, 2008, and was placed under home confinement pending trial. On May 22, 2008, Chidiac failed to report to authorities in Austin, Texas, as required by the terms of his home confinement and has not been seen by law enforcement since that time. He failed to appear for his scheduled trial date in the U.S. District Court for the Western District of Oklahoma on June 9, 2008.

According to the indictment, from at least in or about July 2006 until at least in or about March 2007, Raman and Chidiac gave money and other items to Baker in return for the award of DOD contracts at Camp Victory. In a second conspiracy, which took place from in or about November 2006 until at least in or about March 2007, Baker canceled contracts that were awarded to third party contractors and fraudulently re-awarded them to Chidiac. Baker then authorized Chidiac to receive cash payments for those contracts, despite the fact that Chidiac had neither delivered any goods nor performed any services. In return, Chidiac gave a portion of the money back to Baker.

A violation of the conspiracy statute carries a maximum sentence of five years in prison for each count and a fine of $250,000 for an individual. A violation of the bribery statute carries a maximum sentence of 15 years in prison for each count and a $250,000 fine or three times the value of the thing of value. Failure to appear for a court appearance, as applied in this case, carries a maximum sentence of five years to run consecutive to any sentence of prison imposed for another offense.

Today’s charges are examples of the Department’s commitment to protect U.S. taxpayers from procurement fraud through its creation of the National Procurement Fraud Task Force. The National Procurement Fraud Initiative announced in October 2006 is designed to promote the early detection, investigation, and prosecution of procurement fraud associated with the increase in contracting activity for national security and other government programs.

The ongoing investigation is being conducted by the Antitrust Division’s National Criminal Enforcement Section (NCES), along with special agents from the Defense Criminal Investigative Service (DCIS), Tulsa Resident Agency and the U.S. Army Criminal Investigations Division (Army CID), Dallas Resident Agency. The Criminal Division’s Office of International Affairs and agents from the U.S. Immigrations and Customs Enforcement and the U.S. Postal Inspection Service are providing additional assistance to the investigation. Anyone with information concerning bid rigging, bribery or other criminal conduct in the procurement of goods or services in Iraq is urged to contact NCES at 202-307-6694; DCIS at 800-424-9098 or [email protected]; or Army CID at www.cid.army.mil.

WASHINGTON - Bruce Lapierre of Pascoag, R.I., was sentenced to 51 months in prison today for tax evasion and conspiracy to defraud the United States, the Department of Justice and Internal Revenue Service (IRS) announced. Chief Judge Mary M. Lisi of the District of Rhode Island also ordered Lapierre to pay $463,988 in restitution. Judge Lisi ordered that Lapierre to begin serving his sentence on Oct. 28, 2009.

In March 2009, Lapierre and his co-defendants, Albert and Lorraine Martin, were convicted of conspiracy and two counts each of tax evasion. According to the indictment and evidence introduced during the eight-day trial, Lapierre and Albert Martin owned and operated Classic Machine, a Woonsocket, R.I.-based machine shop, from which they earned substantial income.

From 1997 to 2004, the defendants engaged in an elaborate scheme to conceal income from the IRS they earned through Classic Machine, and thus avoid paying taxes on that income. Rather than open business accounts for depositing business receipts and income, they used Lorraine Martin's personal account to conceal business receipts, as well as an anonymous "private" banking service designed to conceal income from the IRS.

The evidence also showed that the defendants, in order to further conceal their assets and income from the IRS, used multiple business names, such as Banner Technologies, Circle Machine, Preferred Enterprises and Royal Enterprises, to conduct the machine shop business. The defendants also made extensive use of cash and money orders. For example, they cashed checks under $10,000 in order to avoid federal Currency Transaction Reports, which are required for currency transactions of $10,000 or more.

According to evidence presented at trial, Lapierre tried to obstruct an IRS investigation of the machine shop's income by renaming business assets, by sending false and frivolous letters to the IRS claiming he was not required to file tax returns or pay taxes, and by directing a financial institution not to comply with an IRS summons for records.

Sentencing for Albert and Lorraine Martin is scheduled for Nov. 18, 2009. Each defendant faces a maximum of fifteen years in prison and a maximum fine of $750,000.

Acting Assistant Attorney General John A. DiCicco commended the IRS Special Agents who investigated the case, as well as Tax Division Trial Attorneys John Kane and Jorge Almonte who prosecuted the case.

WASHINGTON – A Moldovan national pleaded guilty today in federal court in Kansas City, Mo., for his role in a forced labor trafficking scheme that victimized workers in 14 states, the Justice Department announced.

Alexandru Frumusache, 24, a citizen of the republic of Moldova residing in Kansas City, pleaded guilty before U.S. District Judge Ortrie D. Smith this afternoon to the charge contained in a May 6, 2009, federal indictment.

In or around September 2008, Frumusache began working for Giant Labor Solutions in Kansas City. According to the court documents, between September 2008 and the end of April 2009, he knowingly aided and abetted others in a scheme to cause foreign workers (including nationals of the Phillippines, Dominican Republic and Jamaica) to believe that if they failed or refused to work where and when ordered, they would be deported, their H2B work visas would be cancelled, or they or their family members would be penalized with a $5,000 to $10,000 fee.

Frumusache is subject to a sentence of up to 20 years in federal prison without parole, as well as a fine of up to $250,000 and an order of restitution. A sentencing hearing is scheduled for Feb. 25, 2010.

 

This case is being prosecuted by Assistant U.S. Attorneys Gene Porter, William L. Meiners and Cynthia L. Cordes and Trial Attorney Jim Felte with the Civil Rights Division’s Human Trafficking Prosecution Unit. It was investigated by U.S. Immigration and Customs Enforcement; the FBI; the Labor Department; OIG – Office of Labor Racketeering and Fraud Investigations; IRS – Criminal Investigation; the Kansas Department of Revenue – Criminal Investigations; U.S. Citizenship and Immigration Service and the Independence, Mo., Police Department.

 

Michael Wildridge, 41, pleaded guilty today to transportation and possession of child pornography and was sentenced to 10 years in prison.

Wildridge, a resident of Indianapolis, was also sentenced today by U.S. District Court Judge Sarah Evans Barker to lifetime supervised release following completion of his prison term and was ordered to pay a $1,000 fine.

During today’s plea and sentencing hearing, Wildridge admitted to sending child pornography to other individuals using the Internet and to possessing thousands of visual depictions of prepubescent minors engaging in sexually explicit conduct, including images depicting sadistic and masochistic conduct. Wildridge also admitted to collecting child pornography for nine years.

The case against Wildridge was prosecuted by Assistant U.S. Attorney Steven D. DeBrota of the Southern District of Indiana and Trial Attorney Bonnie L. Kane of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). The case was investigated by ICE Indianapolis, the Hamilton County Internet Crimes Against Children Task Force, the Indiana State Police, the Indianapolis Metropolitan Police Department, the FBI Miami Field Office and CEOS’s High Technology Investigative Unit.

WASHINGTON – Bruce Mikulyuk, 50, of Mishawaka, Ind., pleaded guilty today to interfering with the housing rights of a white woman and an African American man by burning a cross in their yard and later returning with a knife and threatening the man if he did not leave, the Justice Department announced.

According to the plea agreement filed with the court, Mikulyuk used racial slurs and threatened the male victim on Sept. 27, 2007. Later that evening, Mikulyuk built a cross, took it to the victims’ home and set it on fire several feet from the home while the victims and two young children were inside. Mikulyuk later returned with a hunting-style knife and again threatened the male victim. Mikulyuk admitted that he burned the cross and threatened the victims because of race in order to intimidate them and interfere with their housing rights.

The defendant will be sentenced on Dec. 22, 2009.

"The defendant used a burning cross, an unmistakable and despicable symbol of hatred, to intimidate the victims because of their race. These crimes have no place in America," said Loretta King, Acting Assistant Attorney General for the Civil Rights Division. "The Civil Rights Division will continue to prosecute this type of illegal and hateful behavior."

Mikulyuk is the third Indiana man to plead guilty to a cross burning in the past two weeks. Richard LaShure and Aaron Latham, both from Muncie, Ind., pleaded guilty on Sept. 24 to charges of interference with housing rights and conspiracy against rights for burning a cross in the yard of an African American family in July 2008.

The guilty plea results from an investigation by Special Agent Art Grist from the Merrillville Field Office of the FBI and Betsy Biffl from the Civil Rights Division of the Justice Department.

Attorney General Eric Holder and Education Secretary Arne Duncan today joined with Chicago city officials to call for a national conversation on values to address youth violence in the wake of the fatal beating of a Chicago high school student.  The announcement followed meetings with City officials, community leaders, students, and parents.

"Youth violence isn’t a Chicago problem, any more than it is a black problem or a white problem. It’s something that affects communities big and small, and people of all races and colors. Today is the beginning of what will be a sustained, national effort on behalf of this entire administration to address youth violence and to make our streets safe for everyone," Holder said.

"Chicago will not be defined by this incident but rather by our response to it – so we came here today to join with you and with communities all across America – to call for a national conversation on values. It’s a conversation that must happen every place in America where violence, intolerance, and discrimination exists," Duncan said.

Today’s meeting continues President Obama’s and the Administration’s strong commitment to combating violence:

• In August, the Attorney General joined mayors from across the nation at a White House Gang Violence Prevention and Crime Control Conference.
• The Recovery Act provided $4 billion for state and local law enforcement assistance, crime prevention, victims of crime, and funding to address violence against women. Through the Recovery Act, the City of Chicago received over $13 million in funding from the Office of Community Oriented Policing Services COPS) to hire 50 officers to help combat crime and violence.
• The President’s budget includes a request of $298 million in additional funding for hiring additional police officers to help meet the Administration’s commitment to hire 50,000 officers nationwide.
• The Administration requested $114 million within the Department of Justice to fund programs designed to reduce criminal recidivism and help end the revolving door from corrections to reoffending, as well as $115 million in reentry-related programs funded within the Department of Labor.
• The President’s budget requested $25 million to support successful community-based partnerships designed to end violent youth crime – partnerships like the successful model implemented by Operation Ceasefire in Chicago.

The Department of Justice will today release a study on children’s exposure to violence. Among other findings, the study shows that more than 60 percent of the children surveyed were exposed to violence in the past year, either directly or indirectly. Nearly half of children and adolescents were assaulted at least once, and more than one in 10 were injured as a result.  Nearly one-quarter were the victims of robbery, vandalism or theft, and one in 16 were victimized sexually. The study can be found at www.ojjdp.ncjrs.gov after 2 p.m. ET.

"These numbers are astonishing, and they are unacceptable. We simply cannot stand for an epidemic of violence that robs our youth of their childhood and perpetuates a cycle in which today’s victims become tomorrow’s criminals," Holder said.

Duncan announced that the Department of Education is working with Chicago Public Schools (CPS) to award a $500,000 grant to help Fenger High School and the elementary and middle schools that feed into Fenger HS, restoring learning environments following the death of 16-year-old Derrion Albert. His fatal beating, outside a Roseland community center several blocks from the high school, was captured on a cell phone video. Funds for this grant are coming from a grant program entitled Project SERV – School Emergency Response to Violence. This program is designed to help restore the learning environment in school districts that have been impacted by a significant traumatic event. SERV grants also were provided to school districts in New Jersey, Massachusetts, and New York in 2009.

Duncan emphasized, however, "This is not about the money. Money alone will never solve this problem. It’s about our values. It’s about who we are as a society. And it’s about taking responsibility for our young people to teach them what they need to know to live side-by-side and deal with their differences without anger or violence."

The grant from the Department of Education will enable CPS to facilitate safe passage for students to and from school, offer training to enable teachers to better manage their classrooms and engage students in learning, and it can be used to collaborate with community organizations to expand and increase student-centered support programs. The grant also can be used to strengthen the school support network with crisis response training for teachers, and to provide additional, extensive mental health services to students and the school community.

James M. Tanksley, 52, pleaded guilty today to two counts of receipt of child pornography and one count of possession of child pornography and was sentenced to 80 months in prison.

Tanksley, a resident of Indianapolis, was also sentenced today by U.S. District Court Judge Sarah Evans Barker to lifetime supervised release following completion of his prison term.

During today’s plea and sentencing hearing before Judge Barker, Tanksley admitted to being a member of two Internet-based bulletin board groups dedicated to the trading of child pornography. The groups, comprised of members from around the world, could only be accessed using a unique username and password. The groups had very detailed rules for behavior, including requiring all members to post only pornographic images or videos depicting minors under the age of 18. Members were also required to post their images or videos in pre-established categories based on the type of material, such as hardcore videos or individual images of girls aged 0-6.

Tanksley admitted he was an active participant on both bulletin boards and that his involvement dated from June 2006 to May 2007. Tanksley also admitted that on some occasions he commented on the quality of the child pornography he received from other members; expressed his gratification upon seeing the images or videos; and described the sexual acts the children, some younger than approximately 6 years old, engaged in. Through his plea, Tanksley also admitted to possessing child pornography.

Tanksley was identified through "Operation Joint Hammer," the U.S. component of an ongoing global enforcement operation targeting transnational rings of child pornographers. The operation has led to the arrest of more than 60 people in the United States involved in the trade of child pornography. Operation Joint Hammer was initiated through evidence developed by European law enforcement and shared with U.S. counterparts by Europol and Interpol. The European portion of this global enforcement effort, "Operation Koala," was launched after the discovery of the activities of several people in Europe who were abusing children and producing photographs of the abuse for commercial gain. Further investigation unveiled a number of online child pornography rings.

The case was prosecuted by Assistant U.S. Attorney Steven D. DeBrota of the Southern District of Indiana and Trial Attorney Alecia Riewerts Wolak of the Criminal Division’s Child Exploitation and Obscenity Section. The investigation was handled by the U.S. Postal Inspection Service, which was assisted by the U.S. Secret Service, U.S. Immigration and Customs Enforcement, the FBI and the Indiana State Police.

WASHINGTON—Travis Dardenne and Jeffery Brown of Plaquemine, La., each pleaded guilty today in U.S. District Court in Baton Rouge, La., to a violation of the Lacey Act for knowingly attempting to acquire an American alligator in violation of the federal Endangered Species Act and Louisiana law, the Justice Department announced.

According to statements made in court, on Sept. 8, 2006, Dardenne, a licensed alligator hunter, and Brown, a licensed alligator helper, guided an out-of-state alligator sport hunter to an unapproved area, that is, an area for which Dardenne and Brown did not have appropriate state authorization to hunt. The sport hunter killed a trophy-sized alligator in the unapproved area.

Louisiana strictly regulates the hunting of alligators in the wild. Licensed alligator hunters, like Dardenne, are required to have hide, or CITES, tags for each alligator killed. Each tag specifies an area where alligator hunting is allowed. Licensed alligator helpers, like Brown, do not receive hide tags but they hunt with licensed alligator hunters and are expected to know what the licensed alligator hunter’s hide tags provide. It is illegal to kill an alligator in an area for which the licensed hunter does not have hide tags.

In addition to being listed as a threatened species on the United States’ list of Threatened and Endangered Species, the American alligator also is listed as a crocodilian species on Appendix II of the Convention on International Trade in Endangered Species (CITES). To better regulate trade in crocodilian species, the parties to CITES agreed to a program of requiring a uniquely numbered tag to be inserted into the skin of each animal immediately after it is killed. The tag is to remain with the skin as it travels in interstate or international commerce until it is manufactured into a final consumer product. The Secretary of the Interior put into effect special rules for American alligators that implement the CITES tagging program and regulate the harvest of alligators within the United States.

"American alligators are listed as threatened species and are given greater protection under the Endangered Species Act," said John C. Cruden, Acting Assistant Attorney General for the Justice Department's Environment and Natural Resources Division. "Licensed alligator guides are expected to comply with the law and individuals who choose to ignore it will be prosecuted."

Dardenne and Brown each face a maximum sentence of one year in prison and a $100,000 fine.

The case is being prosecuted by Claire Whitney of the Justice Department’s Environmental Crimes Section. The case was investigated by the Law Enforcement Division of the Louisiana Department of Wildlife and Fisheries and the U. S. Fish and Wildlife Service’s Office of Law Enforcement.

WASHINGTON - A federal district court in Texas has permanently enjoined Ludivina Salinas of Mission, Texas, from preparing federal income tax returns for others, the Justice Department announced today. According to a government complaint filed in the case, Salinas claimed improper credits on customers’ federal income tax returns. Salinas agreed to the injunction without admitting the allegations in the complaint.

The complaint alleges that Salinas claimed Earned Income Tax Credits (EITCs) on customers’ tax returns without conducting or documenting the investigation all return preparers must conduct under Treasury regulations before claiming the EITC. According to the government filing, Salinas’s firm, EZ Tax Services, also knowingly helped a customer claim a First-Time Homebuyer credit even though the customer had not purchased a home. The credit is available only to taxpayers who have purchased their first home.

The complaint also alleges that Salinas knowingly allowed customers to evade self-employment taxes by reporting self-employment income as wages or other income. Salinas allegedly asked her customers to sign form letters acknowledging that the client would not be paying self-employment taxes on their income from self-employment.

The suit alleges that Salinas prepared over 1,100 federal income tax returns in 2009 and claimed refunds on 99 percent of them.

In the past decade, the Justice Department has obtained injunctions against more than 425 tax preparers and tax fraud promoters. Information about these cases is available on the Justice Department Web site.

WASHINGTON – The United States has asked a federal court in Denver to bar Curtis Morris, an Elizabeth, Colo., tax return preparer, and his business, Numbers & Beyond, from preparing tax returns, the Justice Department announced today. Morris prepares fraudulent federal income tax returns seeking large refunds for customers, including one refund claim for $1.7 million, according to the government’s complaint.

The complaint alleges that Morris prepares returns that report bogus income tax withholding based on false claims of receiving Internal Revenue Service (IRS) Form 1099 income. The returns allegedly request fraudulent refunds based on the fake reported withholding. The complaint states that Morris’s scheme is part of a growing trend of filing frivolous federal tax returns and forms to steal from the U.S. Treasury.

According to the government complaint, the IRS catches most frivolous refund requests before reimbursements are issued, but Morris’s scheme has caused the IRS to issue $1.9 million in erroneous refunds. Morris has allegedly sought over $55 million in fraudulent refunds for more than 140 customers in Colorado, California, Arizona, and New Mexico.

"Taxpayers tempted to consider participating in an illegal tax refund scheme should think twice before taking the risk," said John A. DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division. "In addition to risking criminal prosecution, they also risk incurring civil penalties of as much as 20 percent of the amount of their fraudulent refund claim. For a $1.9 million bogus claim like the one alleged in this suit, that’s a penalty of $380,000, and it applies even if, as usually happens, the IRS detects the fraudulent claim but doesn’t issue the refund."

In the past decade, the Justice Department has obtained injunctions against more than 425 tax preparers and tax fraud promoters. Information about these cases is available on the Justice Department’s Tax Division Web site.