District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
New Jersey Longshoreman Sentenced for Tax FraudRead the Press Release
A New Jersey man was sentenced yesterday to 29 months in prison for evading taxes and not filing income tax returns.
According to court documents and evidence presented at trial, Jonathan Michael worked as a crane mechanic in the machine shop at the Port Newark Container Terminal. In 2014, after decades of filing tax returns and paying his taxes, Michael gave his employer a fraudulent IRS Form W-4, Employee Withholding Allowance Certificate, that claimed he was exempt from any federal income tax withholding. From 2014 through 2021, Michael did not file tax returns or pay any tax, even though he earned over $2.5 million in wages.
According to evidence presented at the sentencing hearing, Michael’s conduct resulted in a tax loss to the IRS of $656,740.
In addition to his prison sentence, Judge Stephanos Bibas of the U.S. Court of Appeals for the Third Circuit, sitting by designation, ordered Michael to serve three years of supervised release and to pay $378,844 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Michael C. Vasiliadis of the Tax Division and former Assistant U.S. Attorney Matthew F. Nikic for the District of New Jersey prosecuted the case.
Justice Department Secures Agreement to Resolve Claims of Immigration-Related Discrimination at Washington University School of Medicine in St. LouisRead the Press Release
The Justice Department announced today that it secured a settlement agreement with The Washington University, a private university headquartered in St. Louis. The agreement resolves the department’s determination that its medical school, known as Washington University School of Medicine in St. Louis (WashU School of Medicine), violated the Immigration and Nationality Act (INA) by discriminating against a worker based on his citizenship status and then retaliating against him for complaining about the discrimination.
“Workers who believe that an employer has discriminated against them based on citizenship status have the right to stand up for themselves, including by making internal complaints to the employer, without retaliation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to holding employers accountable for unlawful discrimination and retaliation.”
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) determined that WashU School of Medicine discriminated against an individual who had been granted asylum by the federal government when it repeatedly confronted him about his immigration status, his documentation and his right to work, even though he had provided sufficient proof of his permission to work. The department also determined that WashU School of Medicine retaliated against the worker when it terminated his employment for complaining about the discrimination.
Under the terms of the settlement, the school will pay civil penalties to the United States and pay backpay to the affected worker who filed a complaint with IER. The agreement also requires the school to train its personnel on the INA’s antidiscrimination requirements, revise its employment policies and be subject to departmental monitoring and reporting requirements.
IER is responsible for enforcing the antidiscrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices or retaliation and intimidation.
Find more information on how employers can avoid discrimination when hiring workers with asylum or refugee status on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected] or visit IER’s English and Spanish websites. Sign up for email updates from IER.
Justice Department Announces That It Will Provide Technical Assistance to Indianapolis Metropolitan Police Department Under COPS Office’s Collaborative Reform InitiativeRead the Press Release
The Justice Department’s Office of Community Oriented Policing Services (COPS Office) today announced it will engage with the Indianapolis Metropolitan Police Department (IMPD) through the COPS Office’s Collaborative Reform Initiative’s Critical Response program.
In conjunction with the National Policing Institute, and at the request of IMPD Chief Christopher Bailey, the COPS Office will conduct an independent review and analysis of data, records, policies, and practices related to officer involved shootings. The review will also examine the department’s policies, procedures, training, and practices to assist the Department as they work to make them more reflective of accepted state and national best and emerging practices.
“It takes a real commitment to transparency to engage in these types of reviews,” said Acting Associate Attorney General Benjamin C. Mizer. “This is a significant step for the Indianapolis Metropolitan Police Department in their efforts to ensure effective community policing, and we know both the Department and the community will benefit.”
“Taking an in-depth look at these areas is always a positive step and can result in real changes,” said Director Hugh T. Clements, Jr. of the COPS Office. “We credit Chief Bailey and the leadership of the department for asking for this assistance.”
The Collaborative Reform Initiative encompasses three programs offering expert services to state, local, territorial, and Tribal law enforcement agencies: the Collaborative Reform Initiative Technical Assistance Center, Critical Response, and Organizational Assessment programs (complete details of these programs can be found at www.cops.usdoj.gov/collaborativereform). Managed out of the COPS Office, this continuum of services is designed to build trust between law enforcement agencies and the communities they serve; improve operational efficiencies and effectiveness; enhance officer safety and wellness; build agencies’ capacity for organizational learning and self-improvement; and promote community policing practices nationwide.
The Critical Response program is designed to provide targeted technical assistance (TA) to state, local, territorial, and Tribal law enforcement agencies experiencing high profile events, major incidents, or sensitive issues of varying need. Critical Response is highly customizable by providing flexible assistance to law enforcement agencies that have recently experienced a critical incident or identified an issue of significant community concern in their department’s operations. The TA generally falls into three categories: (1) immediate delivery of TA to address a pressing and acute need, (2) data analysis, and (3) after-action reviews to understand and learn from law enforcement and public safety responses to critical incidents or issues.
The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to more than 13,000 state, local, territorial, and Tribal law enforcement agencies to fund the hiring and redeployment of approximately 138,000 officers.
El Departamento de Justicia llega a un acuerdo para resolver reclamos de discriminación relacionada con la inmigración en la Facultad de Medicina de la Universidad de Washington en St. LouisRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con la Universidad de Washington, una universidad privada con sede en St. Louis. El acuerdo resuelve la determinación del departamento que su facultad de medicina, conocida como la Facultad de Medicina de la Universidad de Washington en St. Louis (Facultad de Medicina de WashU), infringió la ley de Inmigración y Nacionalidad (INA) al discriminar a un trabajador con base en su estatus de ciudadanía y luego tomar represalias en su contra por quejarse de la discriminación.
«Los trabajadores que creen que un empleador les ha discriminado por su estatus de ciudadanía tienen derecho a defenderse, lo que incluye la presentación de quejas internas ante el empleador, sin represalias», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia se compromete a responsabilizar a los empleadores de la discriminación y las represalias ilegales».
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), de la División de Derechos Civiles, determinó que la Facultad de Medicina de WashU discriminó a un individuo al que el gobierno federal le había concedido asilo cuando lo enfrentó repetidamente en relación con su estatus migratorio, su documentación y su derecho a trabajar, aunque había proporcionado suficientes pruebas de su permiso para trabajar. Por otra parte, el Departamento también determinó que la Facultad de Medicina de WashU tomó represalias contra el trabajador al despedirlo por quejarse de la discriminación.
En virtud de los términos del acuerdo, la escuela pagará sanciones civiles a los Estados Unidos y pagos retroactivos al trabajador que presentó una reclamación ante la IER. El acuerdo también requiere que la escuela capacite a su personal en cuanto a los requisitos antidiscriminatorios de la INA, que revise sus políticas de empleo y que se someta a los requisitos de supervisión y declaración departamentales.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas o represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminación a la hora de contratar a trabajadores con el estatus de refugiado o asilo en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1‑800‑237‑2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea en vivo o visualizar una presentación a la carta; enviar un correo electrónico a [email protected] ; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
Doctor Sentenced for Unlawful Distribution of OxycodoneRead the Press Release
A New Jersey doctor was sentenced today to two years in prison and barred from practicing medicine for unlawfully distributing addictive opioids without performing necessary patient assessments.
According to court documents and statements made in court, Felicia E. Gonzalez, 65, of Toms River, prescribed oxycodone to three patients without conducting any physical examinations, developing treatment plans, or assessing the patients for drug dependence. Gonzalez previously received national bans from two large pharmacy chains related to her prescribing practices but continued to prescribe addictive opioids without performing the minimum assessments required by state safety regulations. To conceal her unlawful prescribing, Gonzalez falsified her medical records by falsely claiming to have performed examinations when she had not.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Wayne A. Jacobs of the FBI Philadelphia Field Office; Special Agent in Charge Cheryl Ortiz of the Drug Enforcement Administration’s (DEA) New Jersey Field Division, Camden Resident Office Diversion Group; and Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI, DEA, and HHS-OIG investigated the case.
Trial Attorneys Paul J. Koob and Nicholas K. Peone of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Readout of Assistant Attorney General Kristen Clarke’s Trip to Los AngelesRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Los Angeles on April 11 and 12 to continue the division’s tour to engage with stakeholders in underserved communities and reaffirm the department’s commitment to protecting the civil rights of all Americans.
On Thursday, Assistant Attorney General Clarke visited Inglewood High School to speak at a forum hosted by the Western Justice Center (WJC) for junior and senior girls. WJC is part of a collaborative at Inglewood and Morningside High Schools and the Los Angeles County Dream Resource Centers that provide comprehensive services for students facing challenges of living in communities with high levels of violence and poverty. The students raised issues concerning the school to prison pipeline and bullying and harassment in schools. Assistant Attorney General Clarke provided an overview of civil rights and encouraged the students to continue to strive for academic excellence.
In the afternoon, Assistant Attorney General Clarke delivered the Allen Neiman and Alan Sieroty Lecture at the University of Southern California’s Gould School of Law (USC Gould) at the invitation of Dean Franita Tolson, the first Black dean and second woman to lead the law school. During the event, AAG Clarke discussed her trajectory from law school to a career in public service, and outlined division efforts to advance racial justice and equity, including securing the department’s largest redlining settlement with City National Bank to address redlining of Black and Latino communities in Los Angeles. AAG Clarke was joined by leaders of the U.S. Attorney’s Office for the Central District of California.
Assistant Attorney General Clarke traveled to Roosevelt High School, a predominantly Hispanic high school, in Boyle Heights, California, to speak to students in the Law and Public Service Magnet program. She discussed the division’s work to ensure all students are able to learn in a safe environment and have equal access to educational opportunities. She also spoke with the students about challenges they face in their communities, including access to clean air and clean water, and the need for safe and affordable housing.
In the evening, Assistant Attorney General Clarke met with local leaders and student advocates from the Islamic Center of Southern California, Muslim Public Affairs Council, Leo Baeck Temple and the All Saints Church Pasadena. During the meeting, she highlighted the division’s efforts to combat hate crimes and hate incidents and to hold law enforcement accountable when they violate federal civil rights. She underscored the importance of reporting hate crimes and hate incidents, outlined the department’s United Against Hate initiative and underscored the department’s steadfast commitment to investigating and prosecuting unlawful acts of hate in communities across the country.
On Friday, Assistant Attorney General Clarke visited Homeboy Industries, a transformative program founded by Father Gregory Boyle that has been improving the lives of former gang members in East Los Angeles and has evolved into the largest gang intervention, rehabilitation, and re-entry program in the world. She toured the facility with the program’s senior leadership and trainees and learned about the wraparound services offered to those looking to rebuild their lives, including counseling, employment and housing opportunities, tattoo removal, tutoring, record expungement and voter registration. She underscored the Civil Rights Division’s commitment to addressing barriers to reentry for people with criminal histories.
To conclude the trip, Assistant Attorney General Clarke spoke at a fireside chat at Ms. JD’s We Persist: A Symposium on Women in Law. During a moderated conversation with Executive Director Tara Murray of the Washington Bureau for the National Urban League, Assistant Attorney General Clarke highlighted the division’s work to enforce federal civil rights laws by eliminating barriers to voting, holding law enforcement accountable for misconduct, including the recent prosecution of six officers in Rankin County, Mississippi, for torturing two Black men, and fighting against algorithmic bias and discrimination in the wake of increased use of AI by landlords, employers, courts and more.
As part of this tour, Assistant Attorney General Clarke has traveled to underserved communities in Maryland, Georgia, Louisiana, Tennessee, Mississippi, Alabama, Florida, Arkansas and South Carolina to discuss the department’s efforts to protect civil rights.
Photo Credit: Inglewood Unified School District. Photo Credit: Louie Mora, Homeboy Industries.Omaha Man Sentenced for Methamphetamine ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Robert Conley, 50, of Omaha, Nebraska, was sentenced April 12, 2024, in federal court in Omaha, for his involvement in a methamphetamine conspiracy. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Conley to 222 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release.
As part of a long-term investigation into a Mexican-based Drug Trafficking Organization (DTO), DEA identified Maria Reyes-Monge as a meth distributor for the Omaha metro area. As part of the investigation, Reyes-Monge was kept under electronic and physical surveillance. She was observed on numerous occasions meeting with local dealers and supplying them with Mexican-imported meth.
On October 3, 2022, Reyes-Monge was observed going to the Walgreen’s parking lot at 24th and L Street. In the parking lot, agents observed a vehicle meet with Reyes-Monge that was consistent with a hand-to-hand narcotics transaction. After meeting with Reyes-Monge, the vehicle was stopped and Robert Conley was identified as the passenger. During a search of the vehicle, officers located 121 grams of pure meth. Conley admitted the meth was his.
At sentencing, it was determined that Conley was subject to the enhanced penalties for being a career offender. Conley had multiple serious drug felonies which resulted in the sentence being increased to 222 months’ imprisonment. On January 5, 2024, Reyes-Monge was sentenced to a term of imprisonment of 210 months.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the DEA, Omaha Police Department, and Bellevue Police Department.
Canadian Man Sentenced for Operating $175M Psychic Mass-Mailing Fraud SchemeRead the Press Release
A Canadian man was sentenced to 10 years in prison today in the Eastern District of New York for perpetrating a massive psychic mass-mailing fraud scheme that stole more than $175 million from more than 1.3 million victims in the United States.
Following a two-week trial, a federal jury convicted Patrice Runner, 57, a Canadian and French citizen, in June 2023 of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering and multiple counts of mail fraud and wire fraud.
Runner operated a mass-mailing fraud scheme from 1994 through November 2014. As part of the scheme, Runner sent letters to millions of U.S. consumers, many of whom were elderly and vulnerable. The letters falsely purported to be individualized, personal communications from well-known so-called “psychics” Maria Duval and Patrick Guerin and promised that the recipient had the opportunity to achieve great wealth and happiness with the assistance of the “psychics” in exchange for payment of a fee. Once a victim made a single payment in response to one of the letters, the victim was bombarded with dozens of additional letters, all purporting to be personalized communications from the “psychics” and offering additional services and items for a fee.
Although the scheme’s letters frequently stated that a “psychic” had seen a personalized vision regarding the recipient of the letter, in fact, the scheme sent nearly identical form letters to tens of thousands of victims each week. Runner and his co-conspirators obtained the names of elderly and vulnerable victims by renting and trading mailing lists with other mail fraud schemes. In reality, Duval and Guerin had no role in sending the letters, did not receive responses from the victims, and did not send the additional letters after victims paid money. In fact, no “psychics” played any role in Runner’s operation. Some victims made dozens of payments in response to the fraudulent letters, losing thousands of dollars.
Runner directed the scheme for the entirety of its twenty-year operation, directing co-conspirators, who ran the day-to-day operations of the scheme through a Canadian company. Runner used a series of shell companies registered in Canada and Hong Kong to hide his involvement in the scheme while living in multiple foreign countries, including Switzerland, France, the Netherlands, Costa Rica and Spain.
Spanish authorities extradited Runner to the United States to face federal charges in December 2020.
“This case demonstrates that the Justice Department’s Consumer Protection Branch and its partners in the U.S. Postal Inspection Service (USPIS) are committed to investigating and prosecuting transnational fraud schemes targeting Americans consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The global nature of this scheme meant that we had to rely on law enforcement from around the globe to provide evidence of criminality. We want to thank officials from France, Liechtenstein, Switzerland and Canada, and in particular the Canadian Competition Bureau, for providing assistance in securing evidence in this matter, as well as Spain for arresting and extraditing Runner, ensuring that justice could be done.”
“Patrice Runner’s extravagant lifestyle, born on the backs of millions of older and vulnerable Americans, has come to an end,” said Inspector in Charge Chris Nielsen of the USPIS Philadelphia Division. “The conviction and federal sentencing of Patrice Runner is the appropriate punishment for someone who routinely preyed on vulnerable and elderly Americans. Postal Inspectors will continue to work tirelessly to ensure you can trust that the US Mail is free of these types of predatory schemes.”
Four other co-conspirators previously pleaded guilty to conspiracy to commit mail fraud in connection with this mass-mailing fraud scheme: Maria Thanos, 60, of Montreal, Canada; Philip Lett, 53, of Montreal; Sherry Gore, 73, of Indiana, and Daniel Arnold, 62, of Connecticut.
USPIS investigated the case.
Assistant Director John W. Burke and Trial Attorneys Charles B. Dunn, Rachel Baron and Ann Entwistle of the Civil Division’s Consumer Protection Branch prosecuted the case. The Justice Department’s Office of International Affairs provided critical assistance in securing Runner’s extradition.
The department urges individuals to be on the lookout for fraudulent “psychic,” lottery, prize notification and sweepstakes scams. If you receive a phone call, letter or email promising a large prize in exchange for a fee, do not respond. Fraudsters often will use official-sounding names or the names of real lotteries or sweepstakes, or pretend to be a government agent purportedly helping to secure a prize.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with inappropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage at www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Two Doctors Sentenced for $4M Fraudulent Urine Drug Testing SchemeRead the Press Release
The owner and the medical director of a Kentucky pain clinic were sentenced yesterday for their respective roles in a scheme that defrauded Medicare, Medicaid, and commercial insurance companies of over $4 million for medically unnecessary urine drug testing.
Dr. William Lawrence Siefert, 70, of Dayton, Ohio, the clinic’s medical director, was sentenced to one year and six months in prison and ordered to pay $1,968,763.10 in restitution. Dr. Timothy Ehn, 51, of Union, Kentucky, the clinic owner and a licensed chiropractor, was sentenced to two years and six months in prison and ordered to pay $3,773,569.30 in restitution.
“The defendants enriched themselves through a fraudulent urine drug testing scheme that cost Medicare, Medicaid, and commercial insurance companies over $4 million,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The Criminal Division is committed to protecting American taxpayers from doctors who abuse their positions to steal public money by billing for unnecessary medical procedures.”
According to court documents and evidence presented at trial, Ehn and Siefert orchestrated a scheme in which clinic staff billed for urine drug tests that were not medically necessary but were lucratively reimbursed by taxpayer-funded insurance providers like Medicare and Medicaid. Ehn and Siefert continued in their scheme even as their expensive drug testing machine malfunctioned because it was not properly maintained, which caused the machine to produce results that falsely suggested patients were testing positive for street drugs like ecstasy or heroin. Insurance proceeds from urine drug testing ended up comprising three-quarters of the clinic’s revenue.
“These sentences are a testament to the fact that the FBI and our law enforcement partners will not stand by while licensed physicians choose to defraud federally-funded health insurance programs in order to line their own pockets,” said Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office. “As a result of a collaborative effort across all levels of government, patients will no longer have to endure unnecessary medical tests and the taxpayer’s money will not be wasted.”
“Together with our federal, state, and local partners, DEA remains steadfast in our commitment to identify and root out health care professionals who fail to live up to their responsibilities and commitments,” said Special Agent in Charge Orville O. Greene of the Drug Enforcement Adminisration (DEA) Detroit Field Division. “These sentences should serve as a warning there is zero tolerance for fraud, no matter what form it takes.”
“Health care providers who cause the submission of Medicare and Medicaid claims for medically unnecessary services pose a significant risk to these programs and the patients who rely on them,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “These sentences exemplify how HHS-OIG works diligently with our law enforcement partners to hold accountable individuals who, to satisfy their own greed, exploit federal health care programs.”
“Through zealous collaboration with our law enforcement partners, we’re holding these defendants accountable,” said Kentucky Attorney General Russell Coleman. “I’m especially proud of Detective Supervisor Mike McGuffey and the entire Attorney General’s Medicaid Fraud and Abuse team for investigating these crimes and delivering justice.”
On March 23, 2023, a federal jury convicted Siefert of health care fraud, and Ehn of health care fraud and conspiracy to commit health care fraud.
The FBI, DEA, HHS-OIG, and Kentucky Medicaid and Abuse Control Unit investigated the case.
Trial Attorneys Dermot Lynch and Lindsey Carson and Assistant Chief Lauren Kootman of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Justice Department’s Procurement Collusion Strike Force Announces Four New National Law Enforcement PartnersRead the Press Release
The Justice Department announced today that the Procurement Collusion Strike Force (PCSF) is adding four new national partners for a total of 38 agencies and offices committed to deterring, detecting, investigating and prosecuting antitrust crimes and related schemes that target government procurement, grants and program funding at all levels of government.
The new partners include three U.S. Attorneys’ Offices in districts with diverse government spending oversight priorities and proven PCSF and Antitrust Division relationships:
- U.S. Attorney S. Lane Tucker for the District of Alaska
- U.S. Attorney Duane A. Evans for the Eastern District of Louisiana
- U.S. Attorney Philip R. Sellinger for the District of New Jersey
The PCSF is also welcoming the Department of Commerce Office of Inspector General (OIG), whose oversight of billions of dollars authorized under the Infrastructure Investment and Jobs Act and Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 closely aligns with PCSF priorities.
“Since 2019, the Procurement Collusion Strike Force has aggressively investigated and prosecuted crimes that undermine and distort the competitive process in taxpayer-funded procurements,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “With new investments in infrastructure, energy and hi-tech manufacturing the PCSF’ strategic expansion to include these four partners positions it to accomplish its important mandate more effectively.”
“Billions in federal funds are coming into our state to improve the lives of Alaskans, making it imperative that those tax dollars are used for their intended purpose and not illegally obtained,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The implementation of the Procurement Collusion Strike Force in Alaska showcases my office’s commitment to take action against collusive conduct and related fraudulent schemes by individuals or corporations that threaten government spending destined to progress our great state.”
“We welcome the new partnership and expertise that the PCSF brings to our district,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Our office now has access to an important force multiplier, the investigatory strength and institutional knowledge of 37 fellow agencies and offices dedicated to enforcing antitrust laws and protecting the integrity of our government procurement programs. Indeed, it will become a formidable partnership laser-focused on deterring and prosecuting procurement fraud.”
“A level playing field and fair competition are vitally important to ensure that taxpayers are getting the best value for their money when government contacts are awarded,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “My office is proud to join this national effort to combat price-fixing, bid rigging, and any type of collusion or fraud in government procurement. Working with our investigative partners, we will hold accountable anyone who tries to corrupt the procurement process.”
“Preventing, detecting and defeating criminal activity related to federal procurement and grant programs is a high priority for Commerce OIG,” said Acting Inspector General Roderick Anderson of the Department of Commerce. “We are pleased to join this strike force and look forward to collaborating with our partners to enhance our collective efforts to combat antitrust violations, ensure integrity within government procurements and spending and maximize value for taxpayers.”
In November 2019, the Justice Department created the PCSF, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.
Illinois Man Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
An Illinois man pleaded guilty yesterday to preparing false income tax returns for clients.
According to court documents and statements made in court, Gary Sandiego, of Barrington, owned and operated G. Sandiego and Associates, a tax preparation business. For tax years 2014 through 2017, he prepared and filed false income tax returns for his clients. Instead of relying on information provided by the clients, Sandiego either inflated or entirely fabricated expenses to falsely claim on the returns Residential Energy Credits and employment-related expense deductions. As a result, Sandiego caused a tax loss to the IRS of approximately $4,586,154.
Sandiego is scheduled to be sentenced on Aug. 14. He faces a maximum penalty of three years in prison for each count. Sandiego also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Chief Andrew Kameros and Trial Attorney Sara Henderson of the Tax Division are prosecuting the case.
Florida Woman Arrested for Filing False Tax Refund ClaimsRead the Press Release
A Florida woman was arrested today on an indictment returned by a federal grand jury on April 4 in Miami that charged her with filing false tax returns.
According to the indictment, from 2017 through 2021, Yolanda Dewar, of Sunrise, allegedly filed four false tax returns on behalf of a trust to obtain refunds the trust was not entitled to receive. Specifically, Dewar allegedly filed returns falsely reporting that the trust earned significant income, made payments to the IRS and had federal taxes withheld on its behalf. In addition, Dewar allegedly falsely claimed that these payments to the IRS were more than the tax the trust otherwise owed, thereby entitling it to large refunds. Dewar allegedly continued this conduct even after the IRS notified her that her claims were frivolous. Dewar allegedly sought refunds totaling over $1.9 million, of which the IRS paid approximately $500,000. Dewar allegedly used some of the fraudulently-obtained proceeds to purchase a car for a family member, get plastic surgery and renovate her home.
Dewar is charged with four counts of filing false tax returns. If convicted, she faces three years in prison for each count. She also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI) Miami Field Office made the announcement.
IRS-CI is investigating the case.
Trial Attorneys Melissa S. Siskind and Kavitha Bondada of the Justice Department’s Tax Division and Assistant U.S. Attorney Deric Zacca for the Southern District of Florida are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Colorado Man Pleads Guilty to Participating in Global Prize Notice Fraud SchemeRead the Press Release
A Colorado man pleaded guilty today for engaging in a prize notice fraud scheme that defrauded thousands of consumers across the United States and abroad. John Kyle Muller, 58, of Boulder, pleaded guilty to conspiracy to commit mail and wire fraud.
According to the indictment, Muller and his co-conspirators mailed millions of fraudulent prize notices that led their victims to believe that they had been individually selected to receive a large cash prize and would receive their prize if they paid a $20 to $50 fee. In reality, no victim ever received a large cash prize from Muller or his co-conspirators. Instead, victims received a “report” describing sweepstakes opportunities or a trinket of minimal value. After victims responded to one fraudulent prize notice mailing, Muller and his co-conspirators inundated them with additional fraudulent mailings. They also provided victims’ contact information to others in the fraudulent mass-mailing industry. Muller and his co-conspirators used the scheme to steal more than $15 million from victims, many of whom were elderly.
The fraud scheme operated from 2012 to February 2018, when the U.S. Postal Inspection Service (USPIS) executed multiple search warrants and the Justice Department obtained a court order shutting down the fraudulent mail operation. Muller authored, edited and approved many of the fraudulent prize notice mailings before they were mailed to victims and shared the profits from the scheme.
“Through this fraud scheme, the defendant targeted and victimized the some of the most vulnerable among us,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting all consumers – including the elderly and vulnerable – from predatory mass-mailing schemes.”
“John Kyle Muller appeared to be a successful, upstanding member of his community, while hiding the truth that that “success” was taking advantage of older Americans across the country,” said Inspector in Charge Eric Shen of the USPIS’ Criminal Investigations Group. “Postal inspectors work hard to investigate and apprehend fraudsters, but also to prevent these scams. The best defense is to not respond to prize-notice mailings in the first place – if you have to pay money to claim a prize, you can be sure it’s a scam.”
USPIS investigated the case.
Trial Attorneys Carolyn Rice and Charles Dunn of the Civil Division’s Consumer Protection Branch prosecuted the case, with assistance from the U.S. Attorney’s Office for the District of Colorado.
The department urges individuals to be on the lookout for fraudulent psychic, lottery, prize notification and sweepstakes scams. If you receive a phone call, letter or email promising a large prize in exchange for a fee, do not respond. Fraudsters often will use official-sounding names or the names of real lotteries or sweepstakes or pretend to be a government agent purportedly helping to secure a prize.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with inappropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage at www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the Federal Trade Commission (FTC) at www.reportfraud.ftc.gov/or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Biotech CEO Sentenced for $28M COVID-19 Securities Fraud Scheme and Obstruction of Related InvestigationRead the Press Release
The CEO of a California biotechnology company was sentenced today to seven years in prison for a securities fraud scheme that resulted in approximately $28 million in investor losses and obstruction of a related U.S. Securities and Exchange Commission (SEC) investigation.
According to court documents, Keith Berman, 70, of Westlake Village, California, was the CEO and sole director of Decision Diagnostics Corp., a publicly traded medical device company. From February through December 2020, Berman engaged in a scheme to defraud investors by falsely claiming that Decision Diagnostics had developed a 15-second test to detect COVID-19 in a finger prick sample of blood when, in reality, no such test existed. Berman also falsely told investors that the Food and Drug Administration (FDA) was on the verge of approving Decision Diagnostics’ request for emergency use authorization of its purported COVID-19 test. In reality, Berman knew that his company was unwilling and unable to meet the clinical testing required by the FDA but concealed these material facts and misled investors.
“At the height of the COVID-19 pandemic, Keith Berman gave people false hope that his biotech company had developed a rapid blood test to detect COVID-19. But there was no such test. Berman defrauded investors to profit from the pandemic,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today’s sentence sends a message that those who attempt to capitalize on fear and desperation to cheat unsuspecting Americans in times of national emergency will be held accountable.”
As part of the scheme, Berman used a fake persona to repeat false and misleading statements to investors on internet message boards, and to lull unsuspecting investors into inaction by refuting allegations of fraud and threatening potential whistleblowers with civil or criminal sanctions. Berman also obstructed an SEC investigation into his conduct, using another false online identity to surreptitiously direct an investor to write a series of false and threatening letters to the highest levels of SEC management, including the SEC Chairman.
“The defendant, Keith Berman, used the chaos of COVID-19 to not only orchestrate a fraudulent scheme that preyed on investors’ uncertainties, but he also ensnared them in a deceitful web of lies with promises of prosperity, then retaliated against his victims when confronted with his bogus claims, demonstrating his callous disregard for others facing financial ruin at his hands,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group “The U.S. Postal Inspection Service, along with our partners, will continue to bring these predatory criminals to justice.”
“Keith Berman not only misrepresented himself and lied about a phony COVID-19 diagnostic test to entice unsuspecting investors, but he also engaged in threats and obstructed a federal investigation,” said Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division. “This case demonstrates the FBI’s continued commitment to working with our partners to combat fraud and hold perpetrators accountable.”
Berman pleaded guilty on Dec. 7, 2023, to securities fraud, wire fraud, and obstruction of an official proceeding.
USPIS and the FBI investigated the case.
Trial Attorneys Christopher Fenton, Kate T. McCarthy, and Matthew Reilly of the Criminal Division’s Fraud Section prosecuted the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Pennsylvania Insurance Business Owner Convicted of Tax EvasionRead the Press Release
A federal jury convicted a Pennsylvania man today of tax evasion for his years-long scheme to evade the payment of his individual income taxes and his business’s employment taxes.
According to court documents and evidence presented at trial, Brandon Aumiller, of Milroy, owned Brandon Aumiller & Associates, an insurance sales business. For tax years 2007, and 2009 through 2011, Aumiller filed personal income tax returns reporting that he owed a total of approximately $82,311 in income taxes. He also filed employment tax returns for his business reporting that it owed approximately $24,882 in taxes for the third quarter of 2013 and the first two quarters of 2014. Despite reporting that he and his business owed more than a total of $107,193 in taxes to the IRS, Aumiller did not pay these assessments.
When the IRS attempted to collect the taxes, Aumiller engaged in a multi-year scheme to thwart the IRS’ efforts by concealing his assets in bank accounts he failed to disclose to the IRS, structuring multiple real estate deals to conceal the transactions from the IRS and submitting false financial disclosure forms to the IRS that did not fully disclose his bank accounts and concealed critical information about his real estate transactions.
Aumiller is scheduled to be sentenced on Sept. 4. He faces a maximum penalty of five years in prison on each of the two counts of his conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Matthew L. Cofer of the Justice Department’s Tax Division and Assistant U.S. Attorney Geoffrey W. MacArthur for the Middle District of Pennsylvania are prosecuting the case.
Massachusetts Construction Company Owner Pleads Guilty to Tax Crimes and Making a False StatementRead the Press Release
A Massachusetts man pleaded guilty today to an employment tax scheme and making a false statement at an Occupational Safety and Health Administration (OSHA) hearing.
According to court documents and statements made in court, Mauricio Baiense, formerly of Quincy, owned and operated Contract Framing Builders Inc. (CFB), a Medford, Massachusetts, construction business. Baiense was responsible for paying to the IRS the payroll taxes withheld from CFB employees’ wages and for filing the quarterly employment tax returns.
From approximately April 2013 through December 2017, Baiense operated an “off-the-books” cash payroll for CFB. To generate cash for the payroll, Baiense wrote checks drawn on CFB’s bank account to purported subcontractors, which were in fact nominee entities that Baiense controlled. Baiense then cashed or directed others to cash approximately $11 million in such checks at a check cashing business.
Baiense and another man then used a portion of the cash to pay some of CFB’s employees’ wages. Baiense did not report the cash wages to the IRS and did not pay the required employment taxes on them. Baiense also helped prepare at least one false employment tax return that underreported the actual wages paid to CFB’s employees.
In total, Baiense caused a tax loss to the IRS of approximately $2,824,577.45.
Finally, when questioned at an OSHA hearing regarding a workplace accident, Baiense made a false statement. OSHA was investigating the workplace death of an individual working for CFB. During the hearing and while testifying under oath, Baiense falsely claimed that the deceased employee did not work for CFB at the time of the accident.
Baiense is scheduled to be sentenced on July 25. He faces a maximum penalty of five years in prison for each of the seven counts of willful failure to collect or pay over employment taxes, five years in prison for conspiring to defraud the United States and three years in prison for aiding and assisting in the preparation of a false tax return. He also faces up to five years in prison for the false statement. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts, OSHA Region 1 Administrator Galen Blanton, Special Agent in Charge Harry Chavis Jr. of IRS-Criminal Investigation’s (IRS-CI) Boston Field Office and Special Agent in Charge Jonathan Mellone of the Department of Labor’s Office of Inspector General in Boston made the announcement.
IRS-CI, OSHA and the Department of Homeland Security’s Homeland Security Investigations investigated the case with assistance from the Department of Labor’s Office of Inspector General
Assistant Chief Thomas F. Koelbl of the Tax Division and Assistant U.S. Attorney David Tobin for the District of Massachusetts are prosecuting the case.
Justice Department, Federal Trade Commission and the European Commission hold Fourth U.S.-EU Joint Technology Competition Policy DialogueRead the Press Release
Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division, Chair Lina M. Khan of the Federal Trade Commission (FTC) and Executive Vice President Margrethe Vestager of the European Commission met today in Washington, D.C., for the fourth meeting of the U.S.-EU Joint Technology Competition Policy Dialogue (TCPD). The principals and senior staff met to continue to cooperate in ensuring and promoting fair competition in the digital economy.
“The growth of data monopolies and the rapid expansion of artificial intelligence expand the competitive threats we face from dominant digital gatekeepers,” said Assistant Attorney General Jonathan Kanter. “Exchanging best practices with our global counterparts helps us to more effectively serve the American people, and we deeply appreciate the European Commission's continued engagement through the TCPD.”
“As businesses move at breakneck speed to build and monetize AI and algorithmic decision-making tools, engaging with our international partners and sharing best practices will be especially critical,” said FTC Chair Lina M. Khan. “The Joint Technology Dialogue provides U.S. agencies and the European Commission a key opportunity to discuss emerging threats in a rapidly evolving digital economy.”
“With today’s meeting, we have further strengthened our cooperation in competition policy and enforcement in the technology area,” said European Commission Executive Vice President Margrethe Vestager. “The fast-moving technology sector raises global challenges such as regarding artificial intelligence and cloud computing more broadly. It is essential to anticipate and address such challenges through close cooperation, leveraging our respective experiences for the benefit of consumers and businesses on both sides of the Atlantic.”
The discussion centered on critical issues the agencies are facing, including common challenges related to rapidly evolving technologies in the digital sector such as artificial intelligence and the importance of keeping merger control fit for purpose in a digitalized economy. The agencies also exchanged views on evolving market dynamics in the digital sector and reiterated the importance of continuing their discussions within the framework of the TCPD with a goal of ensuring and promoting fair competition in the technology sector.
On Dec. 7, 2021, the Justice Department, FTC and European Commission launched the TCPD to further boost transatlantic cooperation on competition policy and enforcement in the digital sector in light of the common challenges facing the three authorities. Upon its launch, the Commission and U.S. competition agencies issued a statement regarding the TCPD and reaffirming their longstanding tradition of close cooperation on competition matters.
On June 15, 2021, President Biden and the European Commission President Ursula von der Leyen launched the U.S.-EU Trade and Technology Council (TTC). The TTC serves as a forum for the United States and European Union to coordinate approaches to key global trade, economic and technology issues and to deepen transatlantic trade and economic relations based on shared democratic values.
The Justice Department, FTC and European Commission have a longstanding tradition of close cooperation in antitrust enforcement and policy, beginning even before the formal 1991 cooperation agreement between the European Commission and United States regarding the application of their competition laws.
Justice Department Secures Agreement with Staffing Agency to Resolve Immigration-Related Discrimination ClaimRead the Press Release
The Justice Department announced today that it secured a settlement agreement with staffing company Infinity Employment Solutions Inc. (Infinity), formerly doing business as Express Employment Professionals of Mesquite, Texas. The settlement agreement resolves the department’s determination that Infinity violated the Immigration and Nationality Act (INA) when it discriminated against a worker based on his citizenship status by rejecting his valid documents and requesting that he provide a specific document to prove his permission to work.
“It is unlawful discrimination for employers to reject a worker’s valid documents showing their permission to work because of the worker’s citizenship status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to protecting workers who experience discrimination during the hiring process; employers that violate our nation’s civil rights will be held accountable.”
After an investigation, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) determined that Infinity rejected a lawful permanent resident’s valid driver’s license and unrestricted Social Security card, even though they were enough to show his permission to work. The investigation also found that the company demanded that the worker provide a Permanent Resident Card before he could start working. As a result, the worker lost 20 days of wages.
Under the terms of the settlement, Infinity will pay a civil penalty, provide back pay plus interest to the worker and be subject to monitoring requirements.
Under federal law, employers cannot reject a worker’s valid work authorization document based on the worker’s immigration or citizenship status. Indeed, many non-U.S. citizens, including lawful permanent residents, are eligible for several of the same types of documents to prove their permission to work as U.S. citizens are (for example, a state ID or driver’s license and an unrestricted Social Security card). Employers must allow workers to present whatever acceptable documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine and to relate to the worker.
IER is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices and retaliation and intimidation.
Find more information on how employers can avoid discrimination when verifying someone’s permission to work on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected] or visit IER’s English and Spanish websites. Sign up for email updates from IER.
El departamento de justicia llega a un acuerdo con una agencia de dotación de personal que resuelve acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado un acuerdo conciliatorio con la empresa de dotación de personal Infinity Employment Solutions Inc. (Infinity), que anteriormente operó bajo el nombre de Express Employment Professionals of Mesquite, Texas. El acuerdo conciliatorio resuelve la determinación del Departamento que Infinity infringió la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) cuando discriminó a un trabajador en función de su estatus de ciudadanía, al rechazar sus documentos válidos y solicitar que proporcionara un documento específico para demostrar su permiso para trabajar.
«Se considera discriminación ilegal cuando los empleadores rechazan documentos válidos de un trabajador que demuestran su permiso para trabajar, debido al estatus de ciudadanía del trabajador», comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles se compromete a proteger a los trabajadores que sufren discriminación durante el proceso de contratación; se les hará rendir cuentas a aquellos empleadores que infrinjan los derechos civiles de nuestra nación».
Después de una investigación, la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División de Derechos Civiles determinó que Infinity rechazó la licencia de conducir válida de un residente permanente legal y la tarjeta de Seguro Social sin restricciones, aunque eran suficientes para demostrar su permiso para trabajar. La investigación también descubrió que la empresa exigía que el trabajador proporcionara una Tarjeta de Residente Permanente antes de poder empezar a trabajar. Como resultado, el trabajador perdió 20 días de salario.
En virtud de los términos del acuerdo, Infinity pagará una sanción civil, emitirá pagos retroactivos más intereses al trabajador y se someterá a requisitos de supervisión.
Conforme a las leyes federales, los empleadores no pueden rechazar un documento válido de autorización para trabajar de un trabajador en función del estatus migratorio o de ciudadanía del trabajador. De hecho, muchos no ciudadanos de los EE. UU., incluidos los residentes permanentes legales, son elegibles para varios de los mismos tipos de documentos para demostrar su permiso para trabajar como lo son ciudadanos de los EE. UU. (por ejemplo, una identificación estatal o licencia de conducir y una tarjeta de Seguro Social sin restricciones). Los empleadores deben permitir que los trabajadores presenten cualquier documentación aceptable que los trabajadores mismos elijan y no pueden rechazar documentación válida que parezca razonablemente genuina y relacionada con el trabajador.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminar al verificar el permiso para trabajar de alguien en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea en vivo o visualizar una presentación a la carta; enviar un correo electrónico a [email protected] ; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
Wisconsin Man Sentenced to Prison for 2022 Firebombing of Madison BuildingRead the Press Release
Hridindu Sankar Roychowdhury, 29, of Madison, Wisconsin, was sentenced today to 90 months in federal prison for attempting to cause damage by means of fire or an explosive to a building in Madison. Roychowdhury attacked the building with a Molotov cocktail in the wake of the leak of the draft opinion in Dobbs v. Jackson Women’s Health Organization, overruling Roe v. Wade. He targeted the building because it was occupied by an organization that opposed abortion. Roychowdhury pleaded guilty on Dec. 1, 2023.
“The sentence imposed today is the result of innovative work by the FBI and Justice Department prosecutors who tirelessly investigated this case,” said Deputy Attorney General Lisa Monaco. “It is also a reminder that the Justice Department will hold accountable those who turn to violence as a means of intimidation.”
“The FBI will not stand for the use of violence or criminal activity to express personal views on any matter,” said FBI Deputy Director Paul Abbate. “Today’s sentencing is the result of the FBI’s commitment to use all of our resources to aggressively pursue anyone who uses violent tactics in an attempt to impose their views on others.”
“Engaging in an act of terror – in this case, firebombing a business because of their beliefs – is criminal and unamerican. As today’s sentencing demonstrates, it won’t be tolerated,” said Director Stephen Dettelbach of the Bureau of Alcohol, Tobacco, Tobacco and Firearms (ATF). “I commend the collaborative efforts by all the local, state, and federal law enforcement agencies involved in this investigation, and I commend the expertise of ATF’s forensic laboratory, and the assistance from the ATF Boston Field Division, for their dedication. In this case, the DNA testing led to the swift arrest of this defendant and made the community safer.”
“Roychowdhury’s arson was an act of domestic terrorism,” said U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin. “Domestic terrorism is cowardly and profoundly undemocratic. It is not speech; it is not an exchange of ideas; instead, it is an attempt to harm or frighten one’s fellow citizens, thus driving Americans apart and weakening the fabric of our democratic society. The U.S. Department of Justice, and this U.S. Attorney’s Office, with our local and federal law enforcement partners will never flinch from holding domestic terrorists accountable.”
On May 8, 2022, at approximately 6:06 a.m., law enforcement responded to an active fire at an office building located in Madison. Once inside the building, police observed a mason jar under a broken window; the jar was broken and the lid and screw top were burned black. The police also saw a purple disposable lighter near the mason jar. On the opposite wall from the window, the police saw another mason jar with the lid on and a blue cloth tucked into the top; the cloth was singed. The jar was about half full of a clear fluid that smelled like an accelerant. Outside of the building, someone spray painted on one wall, “If abortions aren’t safe then you aren’t either” and, on another wall, a large “A” with a circle around it and the number “1312.” During the investigation, law enforcement collected DNA from the scene of the attack.
In January 2023, after reviewing surveillance video of an individual spray painting “We will get revenge” on the grounds of the Wisconsin State Capitol, law enforcement observed visual similarities to the graffiti that had been spray painted at the scene of the firebombing the year before. In March 2023, law enforcement identified Roychowdhury as a possible suspect. Local police officers observed Roychowdhury dispose of food in a public trash can; the officers recovered the leftover food and related items and law enforcement collected DNA from the food. The contents of the bag included a quarter portion of a partially eaten burrito. Law enforcement swabbed the burrito for DNA and sent the swab to an ATF lab. On March 17, 2023, law enforcement advised that a forensic biologist examined the DNA evidence recovered from the attack scene and compared it to the DNA collected from the food contents. The forensic biologist found the two samples matched and likely were the same individual.
In March 2023, Roychowdhury travelled from Madison to Portland, Maine, and he purchased a one-way ticket from Boston to Guatemala City, departing March 28, 2023. Law enforcement arrested Roychowdhury at Boston Logan International Airport that day.
The Madison Police Department, Wisconsin State Capitol Police Department, ATF, FBI Joint Terrorism Task Force, Homeland Security Investigations, and Dane County Sheriff’s Office investigated the case, with the assistance of the FBI Boston Field Office, Boston Police Department, Massachusetts State Police, U.S. Coast Guard, Federal Air Marshal Service, and Transportation Security Administration.
Assistant U.S. Attorney Elizabeth Altman for the Western District of Wisconsin and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section are prosecuting the case. Assistant U.S. Attorney Amanda Beck for the District of Massachusetts handled the defendant’s appearance in Boston following his arrest.
- Madison Man Sentenced to 7 ½ Years in Prison for Attempted Firebombing of Madison Building in 2022
Justice Department Publishes New Rule to Update Definition of “Engaged in the Business” as a Firearms DealerRead the Press Release
The Justice Department today announced it has submitted to the Federal Register the “Engaged in the Business” Final Rule, which makes clear the circumstances in which a person is “engaged in the business” of dealing in firearms and thus required to obtain a federal firearms license, in order to increase compliance with the federal background check requirement for firearm sales by federal firearms licensees.
“Under this regulation, it will not matter if guns are sold on the internet, at a gun show, or at a brick-and-mortar store: if you sell guns predominantly to earn a profit, you must be licensed, and you must conduct background checks,” said Attorney General Merrick B. Garland. “This regulation is a historic step in the Justice Department’s fight against gun violence. It will save lives.”
“The Bipartisan Safer Communities Act enhanced background checks and closed loopholes, including by redefining when a person is ‘engaged in the business’ of dealing in firearms. Today’s rule clarifying application of that definition will save lives by requiring all those in the business of selling guns to get a federal license and run background checks — thus keeping guns out of the hands of violent criminals,” said Deputy Attorney General Lisa Monaco. “I applaud the hard work of ATF in drafting this rule and reviewing the hundreds of thousands of public comments, which overwhelmingly favored the rule announced today. Because of that work, our communities will be safer.”
“This is about protecting the lives of innocent, law-abiding Americans as well as the rule of law. There is a large and growing black market of guns that are being sold by people who are in the business of dealing and are doing it without a license; and therefore, they are not running background checks the way the law requires. And it is fueling violence,” said Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Today’s Final Rule is about ensuring compliance with an important area of the existing law where we all know, the data show, and we can clearly see that a whole group of folks are openly flouting that law. That leads to not just unfair but, in this case, dangerous consequences.”
The Bipartisan Safer Communities Act (BSCA), enacted June 25, 2022, expanded the definition of engaging in the business of firearms dealing to cover all persons who devote time, attention, and labor to dealing in firearms as a regular course of trade or business to predominately earn a profit through the repetitive purchase and sale of firearms. On March 14, 2023, President Biden issued Executive Order 14092, which, among other things, directs the Attorney General to develop and implement a plan to clarify the definition of who is engaged in the business of dealing in firearms and thus required to obtain a federal firearms license. The Final Rule conforms the ATF regulations to the new BSCA definition and further clarifies the conduct that presumptively requires a license under that revised definition, among other things.
Federally licensed firearms dealers are critical to federal, state, local, Tribal, and territorial law enforcement in our shared goal of promoting public safety. Licensees submit background checks on potential purchasers to the FBI’s National Instant Criminal Background Check System, which helps to keep firearms out of the hands of prohibited persons. Further, licensees keep records of sales transactions to help ensure that when a gun is used in a crime and recovered by law enforcement it can be traced back to the first retail purchaser; they help identify and prevent straw purchasers from buying firearms on behalf of prohibited persons and criminals; and they facilitate safe storage of firearms by providing child-safety locks with every transferred handgun and offer customers other secure gun storage options. Unlicensed dealing, however, undermines these public-safety features — which is why Congress has long prohibited engaging in the business of dealing in firearms without the required license.
To increase compliance with the statutes Congress has enacted, the Final Rule identifies conduct that is presumed to require a federal firearms license. And, in addition to implementing the revised statutory definition discussed above, the Final Rule clarifies the circumstances in which a license is — or is not — required by, among other things, adding a definition of “personal firearms collection” to ensure that genuine hobbyists and collectors may enhance or liquidate their collections without fear of violating the law. The Final Rule also provides clarity as to what licensees must do with their inventory when they go out of business.
The Final Rule goes into effect 30 days after the date of publication in the Federal Register.
On Sept. 8, 2023, the Justice Department published a notice of proposed rulemaking, and during the 90-day open comment period, ATF received nearly 388,000 comments.
The final rule, as submitted to the Federal Register, can be viewed here.
Please note: This is the text of the Engaged in the Business Final Rule as signed by the Attorney General, but the official version of the Final Rule will be as it is published in the Federal Register.
Learn more about the rulemaking process here.
Florida Attorney Sentenced to 8 years in Prison in Fraudulent Charitable Contribution Tax SchemeRead the Press Release
A Florida attorney was sentenced today to eight years in prison for conspiring to defraud the United States and tax evasion arising out of his promotion of an illegal tax shelter scheme involving false charitable deductions.
According to court documents and statements made in court, from at least 2013 through 2021, Michael L. Meyer, of Davie, Florida, used his skills as an attorney and certified public accountant to promote his fraudulent tax shelter called “The Ultimate Tax Plan.” Meyer and his co-conspirators, Rao Garuda and Cullen Fischel, marketed the scheme as a way for high-income clients to reduce their taxes by claiming deductions for charitable donations that Meyer knew were fraudulent. Meyer prepared boilerplate transaction paperwork for his clients that made it appear they had donated valuable property to charities Meyer controlled. In fact, the clients retained complete control and use over the donated assets. Meyer wrongfully advised clients they could legally access their donated assets for their own personal use through tax-free loans and execute an “exit strategy” to buy back their donations at a significantly discounted rate. In some instances, Meyer backdated documents so that clients could claim purported donations on their prior years’ tax returns.
Over the years, Meyer ignored a chorus of people who advised him that his plan was illegal, including the IRS. Indeed, the IRS conducted several audits of Meyer’s charities, and found that the Ultimate Tax Plan was an economic sham. Meyer signed documents acknowledging that finding, and agreeing to close the bogus charities. However, Meyer simply created new “charities” and continued to promote his illegal shelter to wealthy taxpayers.
In April 2018, the Justice Department filed a civil suit against Meyer seeking to enjoin him from continuing to promote the Ultimate Tax Plan. As part of that litigation, the Justice Department issued civil subpoenas to Meyer’s clients requesting records related to the Ultimate Tax Plan. In response, Meyer created false, backdated documents, and directed clients to submit them to the Justice Department. Meyer also provided false, backdated documents in response to document demands he directly received from the Justice Department. In April 2019, a federal district court permanently enjoined Meyer from organizing, promoting, marketing or selling the Ultimate Tax Plan.
Meyer earned more than $10 million from selling the Ultimate Tax Plan. He used that income to purchase a multi-million-dollar estate and a luxury vehicle collection that included Lamborghinis, Rolls Royces, Mercedes Benzes, a Bentley and a Ferrari.
In addition to his prison sentence, U.S. District Judge K. Michael Moore for the Southern District of Florida ordered Meyer to serve three years of supervised release. The court will determine restitution at a later date.
Rao Garuda and Cullen Fishel both pleaded guilty in the Northern District of Ohio to conspiracy to defraud the United States and are scheduled to be sentenced on April 16.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. The Tax Division thanks U.S. Attorney Markenzy Lapointe for the Southern District of Florida for his office’s assistance.
IRS Criminal Investigation investigated the case.
Assistant Chief Michael Boteler and Trial Attorneys Andrew Ascencio and Michael Jones of the Tax Division are prosecuting the case.
Note, an earlier version of the release incorrectly listed Judge Moore as serving in the U.S. District Court for the Southern District of Georgia. The release has been corrected to show that Judge Moore serves in the U.S. District Court for the Southern District of Florida.
Colonial Oil to Pay $2.8 Million Penalty for Failure to Meet Clean Air Act Fuels RegulationsRead the Press Release
The Justice Department and the Environmental Protection Agency (EPA) reached a settlement today with Colonial Oil Industries Inc. that will require the company to pay a civil penalty of more than $2.8 million and spend an estimated $12.2 million to offset the detrimental human health and environmental impacts of Colonial’s alleged failure to meet obligations under the Clean Air Act’s Renewable Fuel Standard (RFS) program and gasoline volatility standards.
Between 2013 and 2019, Colonial excluded certain fuel it supplied to marine vessels from its renewable volume obligations calculations in violation of the RFS regulations. Fuel intended for use only in ocean-going vessels is not required to be included in renewable volume obligation calculations. But not all marine vessels are ocean-going vessels, and volumes supplied to other marine vessels must be included in such calculations. Colonial’s actions resulted in less renewable fuel being used in lieu of gasoline and diesel fuel, causing increased greenhouse gas emissions.
“The creation and use of renewable fuels reduces overall greenhouse gas emissions,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This proposed settlement will hold Colonial to the same renewable fuel requirements that all importers and producers must adhere to.”
“Renewable fuels play a critical role in diversifying our country’s energy mix and reducing greenhouse gas emissions, all while providing good paying jobs and economic benefits to communities across the country,” said Assistant Administrator David M. Uhlmann of the EPA’s Office of Enforcement and Compliance Assurance. “This settlement once more puts gasoline and diesel refiners and importers on notice that they must meet their obligations to reduce climate- and health-harming pollution and that there will be consequences if they do not.”
Under the RFS program, refiners or importers of gasoline or diesel fuel are required to either blend renewable fuels into transportation fuel or purchase credits known as Renewable Identification Numbers (RINs) to meet their renewable volume obligations. Between 2013 and 2019, Colonial failed to purchase and retire enough RINs. The settlement requires Colonial to purchase and retire over 9 million RINs within two years at an estimated cost of approximately $12.2 million. The RIN purchase and retirements is estimated to result in over 18,300 metric tons of carbon dioxide equivalent reductions which equates to powering 2,386 homes’ energy use or 4,355 gasoline cars for a year.
Colonial also sold over a million gallons of gasoline that failed to meet the applicable volatility standard which is intended to reduce evaporative emissions during the summer season from gasoline that contributes to smog and to reduce the effects of ozone-related health problems such as asthma, emphysema and chronic bronchitis.
Attorneys from the Justice Department’s Environmental Enforcement Section are handling the case.
The proposed settlement, lodged in the U.S. District Court for the Southern District of Georgia, is subject to a 30-day public comment period and final court approval. Information on submitting comments is available on the Justice Department’s website: www.justice.gov/enrd/consent-decrees.
Readout of Assistant Attorney General Kristen Clarke’s Trip to Eastern Shore, MarylandRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to the Eastern Shore of Maryland on April 8 to continue the division’s tour to engage with stakeholders in underserved communities and reaffirm the department’s commitment to protecting the civil rights of all Americans.
In the morning, Assistant Attorney General Clarke met with students and faculty at South Dorchester High School. She spoke about the history of the Justice Department’s founding in 1870 and provided an overview of the division’s recent efforts to enforce federal civil rights laws to ensure law enforcement accountability, combat hate crimes, protect the right to vote, and end modern-day redlining. After her remarks, she fielded questions from the students and faculty about local economic justice issues like homelessness and poverty, and highlighted opportunities to pursue careers in federal government and public service.
Later that morning, Assistant Attorney General Clarke toured the Harriet Tubman Museum. Underground Railroad “conductor” Harriet Tubman (born Araminta Ross) was born in Dorchester County, Maryland, in 1822. At this museum in downtown Cambridge – just a few miles from where Tubman grew up – dedicated local volunteers work to share Harriet Tubman’s story and preserve her legacy of strength, courage, and determination.
After her visit to the museum, Assistant Attorney General Clarke and U.S. Attorney Erek L. Barron for the District of Maryland visited North Dorchester High School. There, they met with students to discuss various forms of discrimination and the department’s efforts to protect their civil rights.
Assistant Attorney General Clarke and U.S. Attorney Barron concluded the trip at the Harriet Tubman Freedom Center for a community meeting with civil rights stakeholders and local leaders, including Cambridge Mayor Stephen Rideout, Cambridge Police Chief Justin Todd, Paul Monteiro Jr., Maryland Secretary of Service & Civic Innovation and NAACP Maryland State President Rev. Kobi Little. During the meeting, Assistant Attorney General Clarke and U.S. Attorney Barron underscored their commitment to promoting justice and equity across the nine counties of the Eastern Shore, and highlighted the department’s recent efforts to address sexual harassment at a Maryland university, promote policing reform and other efforts including environmental justice, voting rights and more. In addition, they noted recent FBI data concerning hate crimes in Maryland, and underscored the department’s commitment to addressing hate crimes and hate incidents.
As part of this tour, Assistant Attorney General Clarke has traveled to underserved communities in Georgia, Louisiana, Tennessee, Mississippi, Alabama, Florida, Arkansas and South Carolina to discuss the department’s efforts to protect civil rights.
Assistant Attorney General Clarke speaks to students at South Dorchester High School. Assistant Attorney General Clarke visits the Harriet Tubman Museum and Educational Center. Assistant Attorney General Clarke and U.S. Attorney Erek L. Barron met with local leaders in Cambridge, Maryland.Justice Department Sues Arkansas School District for Denying Temporary Remote Work as Reasonable AccommodationRead the Press Release
The Justice Department announced today that it filed a lawsuit in the U.S. District Court for the Eastern District of Arkansas against West Memphis School District (WMSD) for denying an employee’s request for a reasonable accommodation of temporary telework, in violation of Title I of the Americans with Disabilities Act (ADA). The ADA requires that employers provide reasonable accommodations to employees with disabilities, which may include telework, when it does not pose an undue hardship to the employer.
The lawsuit alleges that WMSD denied the request of a school science curriculum specialist with a disability temporary telework as a reasonable accommodation to avoid damage to her health. WMSD denied the request without discussing it, or possible alternative accommodations, with the employee. As a result of WMSD’s denial, the employee was forced to resign.
“Telework is an important tool that has increased the ability of many people with disabilities to become or remain employed,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Employers must have a process in place to reasonably accommodate workers with disabilities, and they must work with those employees to consider options, including telework.”
People with disabilities have historically faced many barriers to employment. Over the past several years, the feasibility of telework has increased, expanding employment opportunities for people with disabilities.
This matter is based on a referral from the U.S. Equal Employment Opportunity Commission Little Rock Area Office, which conducted the initial investigation. This matter is being handled by the Civil Rights Division’s Disability Rights Section.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov. If you believe you’ve been discriminated against based on disability, please submit a report online at www.civilrights.justice.gov.
Fact Sheet: COVID-19 Fraud Enforcement Task Force 2024 ReportRead the Press Release
Since its inception in May 2021, members of the COVID-19 Fraud Enforcement Task Force (CFETF) have used a full range of tools to hold accountable fraudsters and other criminals who sought to exploit the government’s pandemic response for their personal gain. This work has resulted in:
- More than 3,500 defendants charged with federal crimes.
- More than $1.4 billion in seizures and forfeiture orders to recover stolen CARES Act funds.
- More than 400 civil settlements and judgments.
To achieve these results, CFETF members have built a comprehensive program to identify fraud, recover assets, and hold wrongdoers accountable. This has included:
- Five prosecutorial COVID-19 Fraud Enforcement Strike Forces—based in California, Colorado, Maryland, New Jersey, and Florida—with dedicated funding to pursue pandemic fraud.
- A first-of-its-kind National Unemployment Insurance Fraud Task Force that leverages data from state workforce agencies and the Small Business Administration to identify those who exploited pandemic relief programs.
- A Pandemic Analytics Center of Excellence that creates sophisticated data products designed to detect, deter, and stop pandemic fraud across multiple government agencies.
But our work isn’t done. To continue CFETF’s essential mission—and to ensure that COVID-19 fraudsters don’t get away with it—legislation is required. This includes:
- Extending the statute of limitations for all COVID-19 fraud-related offenses.
- Extending the statutory authorization for the Pandemic Response Accountability Committee (PRAC), a body of 20 federal Inspectors General overseeing pandemic relief spending.
- Adequately resourcing COVID-19 anti-fraud efforts, including data sharing, lead development, criminal prosecutions, and asset recoveries.
To learn more, download CFETF’s 2024 Annual Report, available at justice.gov.
Justice Department to Publish Final Rule to Strengthen Web and Mobile App Access for People with DisabilitiesRead the Press Release
Attorney General Merrick B. Garland today signed a final rule under Title II of the Americans with Disabilities Act (ADA) to ensure the accessibility of web content and mobile applications (apps) for people with disabilities. This final rule clarifies the obligations of state and local governments to make their websites and mobile applications accessible. Every day, people across the country use the web and mobile apps to access public programs and services, including emergency information, courts, healthcare providers, schools, voting information, parking, permit applications, tax payments, and transit updates. If these technologies are not accessible, it can be difficult or impossible for people with disabilities to access critical services. Consequently, individuals with disabilities may be excluded from accessing public services that other people routinely use.
“This final rule marks the Justice Department’s latest effort to ensure that no person is denied access to government services, programs, or activities because of a disability,” said Attorney General Merrick B. Garland. “By issuing clear and consistent accessibility standards for state and local governments’ digital content, this rule advances the ADA’s promise of equal participation in society for people with disabilities. I want to thank the many public servants across the Department, led by the Civil Rights Division, for their tremendous work on this rule.”
“This rule affirms the Justice Department’s unwavering commitment to achieving the promise of the Americans with Disabilities Act — ensuring that people with disabilities can fully and equally participate in our society,” said Acting Associate Attorney General Benjamin C. Mizer. “The rule, which clarifies the standards for making mobile apps and websites accessible, is vital to people’s ability to use and benefit from public programs and services.”
“This rule is truly historic and long overdue as it will help break down barriers that have kept people with disabilities from fully participating in American life,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “The rule will help ensure that people with disabilities have equal access to a full range of government services including critical activities like voting, taking online courses, applying for public benefits, filing taxes and more. For far too long, people with disabilities have been left behind as we've witnessed more services and government activity increasingly move online. This rule is helping to usher us into a new era by bringing an end to the discrimination faced by millions of Americans with vision, hearing, cognitive and manual dexterity disabilities across our country.”
The rule will provide much-needed standards for addressing a wide variety of barriers. For example, the rule will help ensure blind individuals can access information about public transportation on a city’s mobile app or website, enable people who are deaf or hard of hearing to participate in university lectures online and allow individuals with manual disabilities affecting their ability to use a mouse to access web information about voter registration. Ensuring that people with disabilities can access web content and mobile apps and fully participate in public programs and services will improve the day-to-day lives of individuals with disabilities in communities throughout the country.
The final rule mandates technical standards for state and local governments to help ensure the accessibility of their programs and services provided through the web and mobile apps. By providing clarity on how to make sure these platforms are accessible for people with disabilities, this final rule advances the ADA’s promise of a more inclusive society. The final rule will soon be available for review on the Federal Register’s website at www.federalregister.gov. A fact sheet detailing information about the final rule is available here.
For further information on the Civil Rights Division, please visit the department’s website at www.justice.gov/crt. For inquiries regarding the ADA, please contact the department’s toll-free ADA Information Line at 800-514-0301 (voice) or 833-610-1264 (TTY) or visit the ADA website at www.ada.gov.
View ASL translation here.
El Departamento de Justicia publicará una norma final para fortalecer el acceso a aplicaciones móviles y la web para personas con discapacidadesRead the Press Release
El Fiscal General Merrick B. Garland firmó hoy una norma final en virtud del Título II de la ley de Estadounidenses con Discapacidades (ADA, por sus siglas en inglés) para garantizar la accesibilidad de contenido web y las aplicaciones móviles (aplicaciones) para personas con discapacidades. Esta norma final aclara las obligaciones de los gobiernos estatales y locales de hacer accesibles a sus sitios web y aplicaciones móviles.
Cada día, personas por todo el país utilizan las aplicaciones móviles y la web para acceder a programas y servicios públicos, lo que incluye información de emergencia, tribunales, proveedores de atención médica, escuelas, información sobre la votación, aparcamiento, solicitudes de permisos, pagos de impuestos y actualizaciones de tránsito. Si estas tecnologías no son accesibles, puede ser difícil o imposible para las personas con discapacidades acceder a servicios críticos. Como resultado, las personas con discapacidades pueden ser excluidas del acceso a servicios públicos que otras personas utilizan habitualmente.
“Esta norma final marca el esfuerzo más reciente del Departamento de Justicia para garantizar que a ninguna persona se le niegue el acceso a servicios, programas o actividades gubernamentales debido a una discapacidad”, declaró el Fiscal General Merrick B. Garland. “Al emitir estándares de accesibilidad claros y coherentes para el contenido digital de los gobiernos estatales y locales, esta norma promueve la promesa de la ADA de igualdad de participación en la sociedad para las personas con discapacidades. Quiero agradecer a muchos funcionarios públicos de todo el Departamento, liderados por la División de Derechos Civiles, por su tremendo trabajo en esta norma”.
“Esta norma afirma el compromiso inquebrantable del Departamento de Justicia de cumplir con la promesa de la ley de Estadounidenses con Discapacidades, garantizando que las personas con discapacidades puedan participar plena y equitativamente en nuestra sociedad”, afirmó el Fiscal General Asociado en funciones, Benjamin C. Mizer. “La norma, que aclara los estándares para hacer accesibles las aplicaciones móviles y los sitios web, es primordial para la capacidad de las personas de usar y beneficiarse de programas y servicios públicos”.
“Esta norma es verdaderamente histórica y pendiente desde hace mucho tiempo, ya que ayudará a romper las barreras que han impedido que las personas con discapacidades participen plenamente en la vida estadounidense”, comentó la Fiscal General Adjunta de la División de Derechos Civiles, Kristen Clarke. “La norma ayudará a garantizar que las personas con discapacidades tengan la igualdad de acceso a una gama completa de servicios gubernamentales, entre ellos actividades críticas como votar, realizar cursos en línea, solicitar beneficios públicos, presentar impuestos y más. Durante demasiado tiempo, las personas con discapacidades se han quedado atrás mientras cada vez más servicios y actividades gubernamentales se están trasladando al Internet. Esta norma nos está ayudando a dar paso a una nueva etapa al poner fin a la discriminación a la que se enfrentan millones de estadounidenses con discapacidades de vista, audición, cognitivas y manuales por todo nuestro país”.
La norma proporcionará estándares muy necesarios para abordar una amplia variedad de barreras. Por ejemplo, la norma ayudará a garantizar que las personas ciegas puedan acceder a información sobre el transporte público en la aplicación móvil o el sitio web de una ciudad, permitir que las personas sordas o con dificultades auditivas participen en conferencias universitarias en línea y permitir que las personas con discapacidades manuales que afectan su capacidad de usar un ratón acceden a información en línea sobre el registro de votantes. Garantizar que las personas con discapacidades puedan acceder a contenido web y aplicaciones móviles y participar plenamente en programas y servicios públicos mejorará la vida diaria de las personas con discapacidades en comunidades por todo el país.
La norma final exige estándares técnicos para los gobiernos estatales y locales ayuden con el fin de garantizar la accesibilidad de sus programas y servicios proporcionados a través de la web y las aplicaciones móviles. Al proporcionar claridad sobre cómo asegurarse de que estas plataformas sean accesibles para las personas con discapacidades, esta norma final hace avanzar la promesa de la ADA de una sociedad más inclusiva.
La norma final pronto estará disponible para su revisión en el sitio web del Registro Federal en www.federalregister.gov (solo en inglés). Pronto estará disponible una hoja informativa que detalla la información sobre la norma final en www.ada.gov (solo en inglés).Para obtener más información sobre la División de Derechos Civiles, visite el sitio web del Departamento en https://www.justice.gov/es/crt. Para consultas relacionadas con la ADA, comuníquese con la línea gratuita del Departamento para información sobre la ADA al 800-514-0301 (voz) o al 833-610-1264 (TTY) o bien visite el sitio web de la ADA en www.ada.gov (solo en inglés).
Central States Pension Plan Agrees to Repay Excess Special Financial Assistance FundsRead the Press Release
The Central States, Southeast and Southwest Areas Pension Plan (Central States) has entered into a civil settlement agreement pursuant to which it has agreed to repay more than $126.5 million in excess funds that it received from the Pension Benefit Guaranty Corporation (PBGC) in connection with the PBGC’s Special Financial Assistance Program.
The American Rescue Plan Act of 2021 established the Special Financial Assistance (SFA) Program to protect millions of workers in multiemployer pension plans who faced cuts to their benefits, including potentially catastrophic benefit reductions in many cases. The SFA Program is administered by the PBGC, which was authorized to make one-time payments to certain eligible multiemployer pension plans in the amount that was projected to enable the plans to pay all benefits through 2051. Because inclusion of participants who died in the census data provided with the SFA application could alter the amount of funding that an eligible multiemployer plan would need to pay benefits in future years, the PBGC initially required SFA applicants to provide documentation of an independent death audit to identify deceased participants in support of plans’ SFA applications.
Despite its best efforts, Central States’ census erroneously included approximately 3,500 deceased participants among the more than 360,000 plan participants identified in the plan’s SFA application. The erroneous inclusion of deceased participants in Central States’s application was identified during an audit conducted by the PBGC’s Office of Inspector General (PBGC-OIG). The audit determined that as a result of the errors Central States’ SFA award of approximately $35.8 billion was overstated by approximately $126 million. Central States cooperated with the government’s investigation in this matter, including assisting with the actuarial analyses necessary to calculate and validate the amount of the excess funds that it received.
“This settlement demonstrates the Civil Division’s commitment to help recover any excess funds paid in connection with the SFA Program,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “I encourage other pension plans to cooperate with the government’s ongoing efforts to identify and recoup excess SFA Program funds.”
“PBGC-OIG is committed to conducting investigations, audits and other work to strengthen the public trust in government operations,” said Inspector General Nicholas J. Novak of the PBGC-OIG. “Today’s settlement ensures that Central States will return approximately $126.5 million to the United States Treasury, and demonstrates that the partnership between the PBGC-OIG and the Justice Department provides a critical mechanism to protect taxpayer funds.”
“The PBGC has been coordinating with the PBGC-OIG, Justice’s Civil Division and Central States to finalize this agreement,” said PBGC Director Gordon Hartogensis. “We appreciate their collaborative efforts in facilitating this recovery. PBGC is also working with other plans to recover any SFA funds paid out because of inaccurate census data.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, PBGC-OIG and PBGC Office of General Counsel, along with the Department of Labor and Department of Treasury.
Senior Trial Counsel Kelley Hauser of the Civil Division’s Commercial Litigation Branch handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementU.S. Court of Appeals Confirms Justice Department’s Authority to Investigate Potentially Anticompetitive Conduct by the National Association of RealtorsRead the Press Release
Today, the U.S. Court of Appeals for the District of Columbia Circuit lifted restrictions imposed by a lower court that had prevented the Justice Department from investigating potentially anticompetitive conduct by the National Association of Realtors (NAR). The D.C. Circuit’s decision confirms the United States’ position that it retains the authority to investigate NAR’s Participation Rule and Clear Cooperation Policy to protect competition for the benefit of homebuyers.
“Real-estate commissions in the United States greatly exceed those in any other developed economy, and this decision restores the Antitrust Division’s ability to investigate potentially unlawful conduct by NAR that may be contributing to this problem,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division is committed to fighting to lower the cost of buying and selling a home. I would like to commend the staff of the Antitrust Division and our colleagues in the department for achieving this important result.”
The United States has filed several amicus briefs and statements of interest supporting competition in the real-estate industry and meaningful relief for homebuyers and sellers.
Texas Man Pleads Guilty to Tax EvasionRead the Press Release
A federal district court accepted a Texas man’s guilty plea today to evading taxes on income he earned from his business.
According to court documents, John L. Petrone owned and operated a business that sold an herbal extract known as “kratom,” along with other related products. Petrone did not file individual income tax returns for 2014 through 2019, nor did he pay income taxes for those years, despite earning hundreds of thousands of dollars from his business. During that time, Petrone attempted to evade his income taxes by opting not to withhold federal taxes from his paychecks, operating the business under different names, dealing in cash, using business bank accounts to pay for personal expenses and lying to the IRS during an audit. In addition, Petrone did not pay his business’s employment taxes.
Through his actions, Petrone caused a tax loss to the IRS of over $529,000.
Petrone is scheduled to be sentenced on June 14. He faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Chief David Zisserson and Trial Attorney Andres Chinchilla of the Tax Division are prosecuting the case, with assistance and support from the U.S. Attorney’s Office for the Western District of Texas.
New Jersey Man Accused of Evading over $2 Million in Federal TaxesRead the Press Release
A New Jersey man was arrested today on an indictment returned by a federal grand jury in Trenton, New Jersey, charging him with tax evasion and obstructing the IRS.
According to the indictment, in 2015 and 2016, Matthew Tucci, of West Long Branch, received millions of dollars in income from purported refunds by the Customs and Tax Administration of the Kingdom of Denmark. Tucci allegedly filed federal tax returns for those years that reported he owed over $2 million in taxes, but included no payment with his returns. Instead, Tucci allegedly sought to evade IRS efforts to collect the taxes due. He allegedly purchased more than $7.6 million-worth of real estate and attempted to conceal his ownership of these assets from the IRS by, among other things, transferring title to some of these properties to nominees. He also allegedly made false statements to the IRS and withheld important facts from the IRS concerning his financial resources and his ability and intent to pay.
If convicted, Tucci faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement.
IRS Criminal Investigation and the FBI are investigating the case.
Senior Litigation Counsel Nanette Davis and Trial Attorney Catriona M. Coppler of the Justice Department’s Tax Division and Assistant U.S. Attorney Eric Boden for the District of New Jersey, Attorney in Charge of the Trenton Office, are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Court Permanently Enjoins Tax Return Preparer in FloridaRead the Press Release
The U.S. District Court for the Middle District of Florida has permanently enjoined a Central Florida-based tax return preparer from preparing returns for others and from owning, managing or working at any tax return preparation business in the future. The United States will continue to pursue its claim for disgorgement against Kenia Rodriguez.
Rodriguez consented to the permanent injunction. The terms of the permanent injunction require that Rodriguez, individually and under any business for which she conducts business, send notices of the injunction to each person for whom she prepared federal tax returns after Jan. 1, 2016, and post copies of the injunctions in places where she conducts business, including social media accounts and websites. The injunction also provides that the United States may conduct post-judgment discovery to monitor compliance.
The civil complaint filed against Rodriguez alleged that she, through a fictitious entity called Rodriguez Tax Services, claimed extensive fraudulent deductions and credits on customers’ tax returns to purposely underreport their tax liabilities and claim refunds they were not entitled to receive. The complaint also alleged that Rodriguez hid her tax preparation activity by failing to properly identify herself on the tax returns that she prepared.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Permanent Injunction Kenia Rodriguez.pdfRussian Nationals Admit to Illegally Sending Controlled Aviation Technology to RussiaRead the Press Release
Two Russian nationals pleaded guilty this week to conspiracy to violate the Export Control Reform Act (ECRA) in connection with a scheme to acquire and unlawfully export controlled aviation technology to Russian end users. One of the defendants, Oleg Sergeyevhich Patsulya, also pleaded guilty to conspiracy to commit international money laundering.
According to court documents, Patsulya and Vasilii Sergeyevich Besedin, both of whom reside in Miami-Dade County, Florida, conspired with each other and several others to evade U.S. export laws and regulations to send aircraft technology from the United States to Russia. According to court documents, the unlawful scheme began in or about May 2022, in the wake of Russia’s most recent invasion of Ukraine and enhanced U.S. sanctions on Russia.
“These defendants smuggled sensitive aircraft technology into Russia following its unprovoked invasion of Ukraine and did so in violation of laws designed to protect America’s national security,” said Attorney General Merrick B. Garland. “Today’s guilty pleas reflect the seriousness with which the Justice Department approaches violations of the law that endanger the United States and benefit our adversaries.”
“Make no mistake, threats to U.S. economic security are threats to our national security,” said FBI Director Christopher Wray. “When adversaries steal our technology to strengthen their economies, American industry suffers. The FBI and our Disruptive Technology Strike Force partners remain steadfast in our commitment to protect U.S. jobs and innovation by preventing the illegal export of sensitive technology.”
“By their own admission, the defendants fraudulently procured millions of dollars’ worth of U.S.-origin aircraft equipment to smuggle to Russian airline companies,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “These pleas are the latest example of the Department’s commitment to bringing to justice those whose crimes enrich the Russian regime.”
“Disrupting the illegal export of sensitive American goods and technologies to sanctioned foreign actors is a critical priority requiring a whole-of-government approach,” said U.S. Attorney Gary Restaino for the District of Arizona. “This case has been a textbook example of how a collaborative strike force can work together effectively and nimbly to dismantle a sanctions-evading scheme and to prosecute those individuals who profit from it.”
“These guilty pleas are just the latest demonstration of our unwavering commitment to supporting the people of Ukraine and stopping those who attempt to prop up the Russian aviation sector,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “We continue to take aggressive enforcement against those who violate our Russia controls, including those who lie about the identities of their customers in attempts to conceal Russia as the true destination for their goods.”
Beginning in or about May 2022 through on or about May 11, 2023, Patsulya and Besedin conspired with each other and several others to obtain orders for various aircraft parts and components from Russian buyers – primarily commercial airline companies – and then fulfill those requests by acquiring the parts from the United States suppliers, including a supplier based in Arizona, and unlawfully exporting the parts to Russia. The defendants admitted to knowing the items were controlled and required a license from the Department of Commerce to export.
For example, the defendants conspired to export multiple shipments of a carbon disc brake system used on Boeing 737 aircraft. When they contacted various U.S. suppliers in efforts to obtain the brake system, Besedin and Patsulya provided false information that the parts were intended for countries other than Russia. The United States was able to detain, prior to export, multiple shipments made by the defendants containing units of the brake assembly technology.
Besedin and Patsulya further admitted that they attempted to conceal the illegal exports and avoid detection by law enforcement, including by making false representations about the identities of their true customers and using straw buyer-companies located overseas to obscure the origin of revenue. For example, on Sept. 8, 2022, Besedin and Patsulya traveled to Arizona to close a deal with a U.S. company, in which the defendants sought to purchase units of the brake assembly technology. During their discussions with the company, the defendants misrepresented that the aircraft parts were going to be exported to Turkey, when they were in fact destined for Russia. The defendants made false statements both orally to the company and in the export compliance forms. In connection with this transaction, the defendants received money from a Russian airline company to make the purchase. The funds were transferred to Patsulya’s American bank account from a Turkish bank account which had previously received the money from Russia.
In total, throughout the conspiracy, American bank accounts associated with MIC P&I LLC, a company controlled by Patsulya, received at least $4,582,288 sent from Russian airline companies through Turkish bank accounts to purchase aircraft parts and components intended for unlawful export. As part of Patsulya’s plea, he agreed to forfeit, among other assets, a sum of money equal to $4,582,288.
Both Besedin and Patsulya pleaded guilty to conspiracy to export items from the United States without a license in violation of the Export Control Reform Act, which carries a maximum penalty of 20 years in prison. Patsulya additionally pleaded guilty to one count of conspiracy to commit international money laundering, which carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is scheduled for June 17.
The BIS Phoenix Field Office and the FBI Phoenix Field Office are conducting the joint investigation. The BIS Boston Field Office, FBI Miami Field Office, HSI Phoenix Field Office, Customs and Border Protection-Phoenix Field Office, and the U.S. Marshals Office in Miami provided valuable assistance.
Assistant U.S. Attorneys Todd M. Allison and William G. Voit for the District of Arizona and Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Florida provided valuable assistance.
Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
Justice Department Secures Agreement with Dallas-Based Management Services Company to Resolve Claims of Employment DiscriminationRead the Press Release
The Justice Department announced today that it secured a settlement agreement with Riata Corporate Group LLC, a Dallas-based company that provides management services to the energy and consumer goods sectors. The settlement resolves the department’s determination that the company violated the Immigration and Nationality Act (INA) when it discriminated against an applicant by refusing to consider her for employment because she is a naturalized United States citizen.
“Discrimination against workers based on their citizenship or immigration status not only harms workers, but employers as well, because they miss out on qualified applicants,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Ignorance of the law is no excuse, and the Justice Department will continue to hold accountable employers that violate our nation’s federal civil rights laws.”
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) opened an investigation based on a worker’s complaint and determined that, in October 2023, Riata unlawfully discriminated against her even though the company had initially recruited her for employment. After learning the worker is a naturalized U.S. citizen, the company informed her that it could not hire her because of her citizenship status. The department determined that Riata rejected the worker because it misunderstood one of its government contracts to require the company to hire only U.S.-born citizens.
The INA prohibits employers from discriminating against workers based on their citizenship or immigration status, unless the discrimination is required by a law, regulation, executive order or government contract. Although Riata had a government contract that required it to hire only U.S. citizens for certain work, the contract did not authorize Riata to exclude naturalized U.S. citizens.
Under the terms of the settlement, Riata will pay lost wages to the affected worker. The agreement also requires Riata to pay a civil penalty to the United States, train its staff on the INA’s anti-discrimination provision, revise its employment policies and be subject to monitoring and reporting requirements.
IER is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee, unfair documentary practices and retaliation and intimidation.
Find more information on how employers can avoid discrimination in recruitment and hiring on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify) or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected] or visit IER’s English and Spanish websites. Sign up for email updates from IER.
Justice Department Announces Publication of Third Volume of National Firearms Commerce and Trafficking AssessmentRead the Press Release
The Justice Department today announced the publication of Firearm Trafficking Investigations, the third volume of the National Firearms Commerce and Trafficking Assessment (NFCTA), a four-part, comprehensive examination of commerce in firearms and the diversion of firearms to illegal markets. This Volume incorporates input from the most comprehensive national survey of the special agents who conduct Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) trafficking investigations to provide the first in-depth analysis of firearm trafficking investigations in more than two decades. This report examines 9,708 closed ATF firearm trafficking investigations initiated between CY 2017 and 2021. In April 2021, Attorney General Garland directed the ATF to undertake its first comprehensive study of criminal gun trafficking, the intentional movement of one or more firearms into the illegal market for a criminal purpose or possession.
“This report makes clear that black-market guns sold by unlicensed dealers without a background check are increasingly being found at crime scenes,” said Attorney General Merrick B. Garland. “Under the Bipartisan Safer Communities Act, the Justice Department has proposed a new rule to clarify when gun dealers must get licenses and conduct background checks. The Department is also vigorously enforcing the new provisions Congress passed in the Act to prohibit illegal gun trafficking and straw purchasing. This report reminds us of the urgency of our work, and I am grateful to the extraordinary professionals of the ATF who put their lives on the line to help keep our communities safe, and whose tireless work is responsible for the most comprehensive look at America’s crime gun data in over two decades.”
“Thanks to the hard work of ATF, we now have fresh data and cutting-edge insights on the key drivers of illegal firearms trafficking,” said Deputy Attorney General Lisa Monaco. “Among other trends, the report shows the high frequency of traffickers selling firearms without a license to evade federal law, and the widespread impact of straw purchasers concealing the true recipients of illegally diverted firearms. This report will help agents and prosecutors target investigations, prosecute offenders, and reduce gun violence.”
“This is the most comprehensive survey ever of ATF’s thousands of expert gun trafficking agents to learn about the cases they do,” said ATF Director Steven Dettelbach. “Americans need this data to understand this threat and to better address it. One striking finding from the data is that individuals illegally engaged in the business of unlicensed firearms dealing are contributing more and more to the flow of firearms into the black market, where we know that felons, gang members, and other violent offenders often get their guns. I want to be crystal clear – illegal firearms trafficking is not a victimless crime. You can’t illegally help to arm violent people and not be responsible for the violence that follows. We fight this public safety battle every day at ATF, as the thousands of ATF cases analyzed in this volume demonstrate. I commend the men and women of ATF and our truly wonderful partners for producing this important study, and also for risking everything to pursue these cases every single day.”
One of the key data-points identified in the analysis is the increased use of intelligence to initiate trafficking investigations. The use of Crime Gun Intelligence Center (CGIC) referrals increased nearly 20% from 2017 to 2021, while the use of Confidential Informants to initiative cases dropped nine percent during that time. This data underscores the value of CGICs, which are law enforcement hubs that focus exclusively on investigating and preventing gun violence in local communities. They bring together, under one roof, the expertise of state and federal investigators, firearms evidence examiners, and intelligence analysts to rapidly collect, analyze, and share information and leads about guns used in violent crimes and to take action to disrupt and dismantle firearm trafficking. ATF operates and supports more than 60 CGICs nationwide.
Another key data point demonstrates the shift in the types of supply lines, or trafficking channels, used to move firearms out of lawful commerce into the illegal market over the past two decades. Investigations involving corrupt federal firearms licensees (FFLs) decreased over the study period with the most frequent channels identified now being illegal, unlicensed firearm dealing by private persons and straw purchasing, which is when someone buys a gun for someone who is prohibited.
The report also identified source-to-market type trends. For instance, 56% of the cases examined involved intrastate trafficking, while 32% involved interstate trafficking. Intrastate trafficking was most prevalent in all regions except the northeast, where interstate trafficking was most prevalent. This reinforces the findings from Volume II, which confirmed that although most — 72% nationally — traced crime guns are recovered in the same state in which they were acquired from an FFL, certain states and cities are targets for firearm traffickers. The cross-jurisdictional nature of this issue — guns purchased in one state and trafficked to another where they’re used in crime — is what led the Attorney General to launch five firearms trafficking strike forces in July 2021.
Additional key findings from the study period include:
- The three most frequently identified violations of federal law in the investigations analyzed during this study included: (1) dealing in firearms without a license, (2) providing false information to an FFL, which is associated with straw purchasing, and (3) possession of a firearm by a convicted felon.
- Firearms trafficked through unlicensed dealers were used in shootings in 368 cases.
- Trafficked firearms were used in homicides in 265 cases, attempted homicide in 222 cases, and aggravated assaults in 446 cases.
- Over half of the firearms trafficked were handguns (nearly 56%), with rifles following in second (nearly 19%).
- The average number of firearms trafficked per case was 16.
- In nearly 58% of the cases, five or fewer firearms were trafficked.
- The majority of traffickers who directly or indirectly facilitated the movement of firearms to illegal markets were white (53%), male (84%), and U.S. citizens (95%).
- The recipients or end users of the trafficked firearms tended to be previously convicted felons (60%) and young adults aged 25 to 34 (48%).
- The annual percentage of juvenile (17 and under) end-users increased almost 10% between 2017 and 2021.
In February 2023, the Department issued Volume II of the NFCTA, Crime Gun Intelligence and Analysis, which presents and analyzes data on crime guns (firearms used in crime) recovered between 2017 and 2021. The analysis reinforces the critical importance of ATF’s unique crime gun tracing authority and highlights the value of data from ATF’s National Integrated Ballistic Information Network (NIBIN) program.
In May 2022, the Department issued Volume I of the NFCTA, Firearms in Commerce, which presents and analyzes data collected by ATF and other federal agencies related to the manufacture, exportation, and importation of firearms.
To produce the NFCTA, the ATF assembled a team of subject experts from ATF, as well as from academic and related fields. Although ATF issues a variety of public and law enforcement reports and bulletins regarding firearm commerce, trafficking, and related issues every year, it has not undertaken a joint academic study on the scale of the NFCTA in more than 20 years.
Former Guam Police Officer Sentenced to 240 Months in Federal Prison for Trafficking Methamphetamine and Unlawful Possession of FirearmsRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Jose Pablo Ananich, age 52, from Yigo, Guam was sentenced to 240 months imprisonment. He was charged with Conspiracy to Distribute Fifty or More Grams Methamphetamine, Attempted Possession of Fifty or More Grams of Methamphetamine with Intent to Distribute, and Possession of Fifty or More Grams of Methamphetamine with Intent to Distribute, in violation of 21 U.S.C. §§ 846 and 841(a)(1) and Carrying of Firearms During the Commission of a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c)(1)(A). The Court also ordered five years of supervised release following imprisonment and a mandatory $300.00 special assessment fee. Ananich was also ordered to forfeit $146,728.00 in currency, 12 firearms, and 5,918 rounds of ammunition. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
From January 2020 to June 2021, Ananich agreed with Andrew Philip Manibusan (“Manibusan”), and James Bernard Ada Mafnas (“Mafnas”), to distribute methamphetamine in Guam. Ananich communicated with Manibusan, then located in Antioch, California, to mail the drugs to Guam. Mafnas received the packages in Guam and delivered them to Ananich.
Ananich and Mafnas purchased over $51,000 in postal money orders and cashier checks that were made payable to Manibusan to pay for the methamphetamine. Once the drugs arrived in Guam, Ananich distributed the methamphetamine. Ananich and Manibusan planned to use the proceeds from the sale of methamphetamine to start a larger drug distribution enterprise on island.
Law enforcement eventually searched Ananich’s residence and discovered 25 pounds of methamphetamine in his truck. Upon learning that police were conducting the search, Ananich tried to burn an additional 13 pounds in a shipping container on his property.
Ananich was arrested on June 1, 2021. At that time, he possessed $146,728.00 in cash, illegal proceeds from sales of methamphetamine. He also possessed 12 firearms and 5,918 rounds of ammunition. Notably, one of the firearms was affixed to the center console in Ananich’s truck, making it easily accessible.
Co-defendants Mafnas and Manibusan were previously sentenced in September 2022. Mafnas is serving 121 months imprisonment, while Manibusan is serving 168 months imprisonment.
“Ananich flooded our island with methamphetamine,” stated United States Attorney Shawn N. Anderson. “His criminal conduct was facilitated by alarming quantities of firearms and ammunition. Law enforcement should be commended for their continuing efforts to promote public safety. This case demonstrates the benefits of working together to combat the drug epidemic in Guam.”
“The sentencing of Ananich highlights the importance of rooting out criminal activity within law enforcement ranks. Such cases not only betray public trust but also undermine the integrity of the criminal justice system,” said Special Agent in Charge John F. Tobon. “This case underscores the importance of maintaining transparency, accountability, and adherence to the rule of law within law enforcement organizations.”
“The selfish actions of former officer Jose Pablo Ananich jeopardized the safety of the community, all in an effort to line his own pockets. These actions grossly violate the oath of a peace officer, and this joint investigation illustrates the collaborative work, alongside our local and federal law enforcement partners, to target and hold drug traffickers accountable who drive addiction and threaten public safety,” said Assistant Special Agent in Charge Victor J. Vazquez, DEA Honolulu Office. “The DEA is committed to safeguarding the health and safety of our communities, and to keeping all Americans safe from illicit narcotics and its accompanying violence."
“This sentencing and others like it are a clear message that postal inspectors will not allow the mail to be used to traffic dangerous controlled substances to Guam or anywhere else in our country,” said USPIS San Francisco Division Inspector-in-Charge Rafael Nuñez. “We owe thanks to the Guam Interdictions Anti-Narcotics Trafficking Task Force (GIANT TF), the Guam Customs and Quarantine Agency, Guam Police Department, and our federal law enforcement partners for their dedication to this important work to keep our communities safe.”
“It pains us when a former law enforcement officer betrays the public’s trust by trafficking narcotics and carrying firearms while doing so,” said ATF Seattle Field Division Special Agent in Charge Jonathan Blais. “Hopefully Mr. Ananich’s very significant sentence will show the public that ATF and our other law enforcement partners will not back down from investigating anyone who works to harm our communities this way.”
This joint investigation was conducted by the Homeland Security Investigations, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Postal Inspection Service, Customs and Border Protection (CBP) Officers in Honolulu, assistance from the Guam Police Department and Guam Customs & Quarantine Agency. The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
Foreign National Sentenced to Prison for Cocaine TraffickingRead the Press Release
A foreign national was sentenced today to 13 years and one month in prison for his role in an international conspiracy to distribute more than 2,000 pounds of cocaine for unlawful importation into the United States.
According to court documents, from 2014 through May 2019, Lazaro Viton Rodriguez, 55, a long-time resident of the Dominican Republic, participated in a drug trafficking network based in the Dominican Republic that transported cocaine from South America, through the Caribbean, to the United States. The drug trafficking network used vessels, such as sailing yachts and sport fishing boats, to transport the cocaine, often stopping in various Caribbean ports while transporting the cocaine to give a cover of legitimacy to each voyage. One of these vessels, the Casablanca, was interdicted by the U.S. Customs and Border Protection’s Marine Interdiction Unit in November 2018 as it entered U.S. waters near Key Biscayne, Florida. Officers boarded and searched the Casablanca, seizing more than 327 kilograms of cocaine.
Rodriguez was involved in purchasing, registering, and maintaining vessels used by the drug trafficking network to transport cocaine. He assisted in registering vessels in the names of straw purchasers, constructed secret compartments on the vessels to hide the cocaine, and coordinated with crew members via satellite phone as they sailed to locations in the Caribbean to pick up cocaine.
Rodriguez pleaded guilty in November 2023 to participating in a conspiracy to distribute five kilograms or more of cocaine for importation into the United States.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Acting Special Agent in Charge Darren B. McCormack of Homeland Security Investigations (HSI) New York; and Administrator Anne Milgram of the Drug Enforcement Administration (DEA) made the announcement.
The case is supported by the Organized Crime and Drug Enforcement Task Forces (OCDETF).
HSI New York and DEA New York investigated the case.
Acting Assistant Deputy Chief Melanie L. Alsworth and Trial Attorneys Samantha Thompson and Janet Turnbull of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case.
The Justice Department’s Office of International Affairs provided significant assistance. The Justice Department thanks authorities in the Dominican Republic for their assistance in the investigation.
Five New Federal Agencies Join Justice Department in Pledge to Enforce Civil Rights Laws in Artificial IntelligenceRead the Press Release
The Justice Department announced today that five new cabinet-level federal agencies have joined a pledge to uphold America’s commitment to core principles of fairness, equality and justice as new technologies like artificial intelligence (AI) become more common in daily life.
“Federal agencies are sending a clear message: we will use our collective authority and power to protect individual rights in the wake of increased reliance on artificial intelligence in various aspects of American life,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “As social media platforms, banks, landlords, employers and other businesses choose to rely on artificial intelligence, algorithms and automated systems to conduct business, we stand ready to hold accountable those entities that fail to address the unfair and discriminatory outcomes that may result. We are mounting a whole-of-government approach to enforcing civil rights and related laws when it comes to automated systems, including AI.”
The joint statement, first announced in April 2023, now includes the Department of Education, Department of Health and Human Services, Department of Homeland Security, Department of Housing and Urban Development and Department of Labor. The Consumer Protection Branch of the Justice Department’s Civil Division also joined the pledge. Additionally, the updated statement highlights recent agency accomplishments, including policy guidance and enforcement actions involving automated systems.
Assistant Attorney General Clarke also announced that the Civil Rights Division has launched a public-facing webpage to centralize content related to the Division’s work on AI and civil rights. This resource will help the public more easily access information about how advanced technologies can result in unlawful discrimination and what the division can do to assist victims of discrimination.
These announcements follow the April 3 convening, which brought together directors of civil rights offices and senior officials across the federal government to foster AI and civil rights coordination. This was the second such convening hosted by the Civil Rights Division following President Biden’s Executive Order on the Safe, Secure and Trustworthy Development and Use of Artificial Intelligence, which directs federal agencies to use their authorities to prevent and address unlawful discrimination and other harms that result from the use of AI in programs and benefits, while preserving the potential social, medical and other advances AI may spur.
Meeting participants heard from the Justice Department’s Chief AI Officer, who discussed the department’s efforts under the Office of Management and Budget’s March 28 Memorandum, which includes the requirement that agencies assess and mitigate technology risks, including AI-enabled discrimination, in their operations. During the convening, agency representatives discussed strategies to enhance enforcement, coordination, external engagement and public awareness about AI's potential discriminatory uses and effects. Participants also gave updates on agency obligations under the Executive Order, including guidance, best practices and other resources, some of which may be released as early as the end of April.
Officials from the following agencies participated in the April 3 Civil Rights Division convening: Consumer Financial Protection Bureau, Department of Agriculture, Department of Commerce, Department of Education, Department of Health and Human Services, Department of Homeland Security, Department of Housing and Urban Development, Department of the Interior, Department of Labor, Department of Transportation, Department of the Treasury, Equal Employment Opportunity Commission, Federal Trade Commission and Social Security Administration.
El Departamento de Justicia llega a un acuerdo con una empresa de servicios de gestión con sede en Dallas para resolver acusaciones de discriminación en el empleoRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Riata Corporate Group LLC, una empresa con sede en Dallas que presta servicios de gestión a los sectores de energía y bienes de consumo. El acuerdo resuelve la determinación del departamento de que la empresa infringió la ley de Inmigración y Nacionalidad (INA) cuando discriminó a un solicitante al negarse a considerarla para el empleo porque es ciudadana estadounidense naturalizada.
«La discriminación a los trabajadores basada en su ciudadanía o estatus migratorio no solo perjudica a los trabajadores, sino también a los empleadores, porque pierden a los solicitantes cualificados», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La ignorancia de la ley no sirve de excusa, y el Departamento de Justicia seguirá responsabilizando a los empleadores que infrinjan las leyes federales de derechos civiles de nuestra nación».
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), de la División de Derechos Civiles, inició una investigación basada en la queja de una trabajadora y determinó que, en octubre de 2023, Riata la discriminó ilegalmente, aunque la empresa la había reclutado inicialmente para el empleo. Después de enterarse de que el trabajador es ciudadana naturalizada, la empresa le informó de que no podía contratarla debido a su estatus de ciudadanía. El Departamento determinó que Riata rechazó a la trabajadora porque malinterpretó uno de sus contratos gubernamentales, creyendo que exige que la empresa contrate solamente a ciudadanos nacidos en los EE. UU.
La INA prohíbe que los empleadores discriminen a los trabajadores con base en su estatus migratorio o ciudadanía, a menos que una ley, un reglamento, una orden ejecutiva o un contrato gubernamental requiera tal discriminación. Aunque Riata tenía un contrato con el gobierno que le exigía contratar solo a ciudadanos de los EE. UU. para ciertos trabajos, el contrato no autorizó a Riata a excluir a los ciudadanos naturalizados de los EE. UU.
Según los términos del acuerdo, Riata pagará los salarios perdidos al trabajador afectado. El acuerdo también requiere que Riata pague una sanción civil a los Estados Unidos, que capacite a su personal en cuanto a los requisitos antidiscriminatorios de la INA, que revise sus políticas de empleo y que se someta a ciertos requisitos de supervisión y declaración.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminación en la contratación y el reclutamiento en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea en vivo o visualizar una presentación a la carta; enviar un correo electrónico a [email protected] ; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
Ohio Businessowner Pleads Guilty to Tax Offense Related to Illegal Gambling BusinessesRead the Press Release
An Ohio woman pleaded guilty today to conspiring to defraud the IRS related to her operation of an illegal gambling business.
According to court documents and statements made in court, from 2014 through 2018, Stephanie Condric managed, and later co-owned, Gametastic, an illegal gambling business located in Canton, Ohio. Condric and her co-conspirators did not report to the IRS the cash wages paid to Gametastic’s employees, which caused the business to underpay its employment taxes. In addition, she filed false personal tax returns that concealed a portion of the income she received from Gametastic.
Sentencing for Condric is scheduled for a later date. Condric faces a maximum penalty of five years in prison for conspiring to defraud the United States. She also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation, the Stark County Prosecutor’s Office, Department of Treasury Office of Inspector General, Homeland Security Investigations, Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force are investigating the case.
Trial Attorneys Sam Bean and Hayter Whitman of the Tax Division and Assistant U.S. Attorney David Toepfer for the Northern District of Ohio are prosecuting the case.
Ohio Business Owner Pleads Guilty to Tax Offense Related to Illegal Gambling BusinessesRead the Press Release
An Ohio woman pleaded guilty today to conspiring to defraud the IRS related to her operation of an illegal gambling business.
According to court documents and statements made in court, from 2014 through 2018, Stephanie Condric managed, and later co-owned, Gametastic, an illegal gambling business located in Canton, Ohio. Condric and her co-conspirators did not report to the IRS the cash wages paid to Gametastic’s employees, which caused the business to underpay its employment taxes. In addition, she filed false personal tax returns that concealed a portion of the income she received from Gametastic.
Sentencing for Condric is scheduled for a later date. Condric faces a maximum penalty of five years in prison for conspiring to defraud the United States. She also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation, the Stark County Prosecutor’s Office, Department of Treasury Office of Inspector General, Homeland Security Investigations, Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force are investigating the case.
Trial Attorneys Sam Bean and Hayter Whitman of the Tax Division and Assistant U.S. Attorney David Toepfer for the Northern District of Ohio are prosecuting the case.
New Jersey Tax Preparer Charged in COVID-19 Employment Tax Credit SchemeRead the Press Release
A federal grand jury in Newark, New Jersey, returned an indictment today charging a New Jersey tax preparer with fraudulently seeking more than $150 million from the IRS by filing more than 1,600 false tax returns for himself and his clients that claimed COVID-19-related employment tax credits.
Leon Haynes, of Teaneck, New Jersey, was charged with 55 counts of aiding and assisting in the preparation of false tax returns, five counts of mail fraud, one count of aggravated identity theft and two counts of tax evasion. Haynes was previously charged by complaint in relation to the same scheme.
In response to the COVID-19 pandemic and its economic impact, Congress authorized an employee retention tax credit that an eligible small business could use to reduce the employment tax it owed to the IRS, also known as the “employee retention credit” or ERC.
Congress also authorized a credit that a business could take against employment taxes to reimburse businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit” was equal to the wages the business paid the employees during their leave.
As charged in the indictment, from November 2020 to May 2023, Haynes repeatedly exploited these programs that were intended to help small businesses impacted by the COVID-19 pandemic. Acting as a tax preparer, Haynes allegedly filed more than 1,600 false employment tax returns with the IRS claiming COVID-related tax credits on behalf of himself and his clients.
Haynes allegedly falsely told his clients that the government was giving out COVID-relief money for businesses and that they were eligible for it simply because they had a business. Haynes allegedly submitted forms to the IRS on behalf of his client’s businesses, often without consulting his clients, that grossly overstated the number of employees and the amount of wages paid to fraudulently claim these COVID-related tax credits. Haynes allegedly submitted similarly false forms for four of his own companies.
According to the indictment, based on these and other misrepresentations, Haynes fraudulently sought more than $150 million in tax refunds on behalf of his companies and numerous other businesses in his clients’ names.
The IRS allegedly disbursed at least $40 million in tax refunds to Haynes’ clients based on the false tax forms that Haynes filed. Haynes allegedly collected a percentage of the tax refunds the client received from the IRS as a fee. At Haynes’ request, many clients allegedly paid him those fees in cash. Haynes allegedly did not report on his or his businesses’ tax returns some of the income he received from clients as his share of the fraudulent obtained tax refunds. The IRS also allegedly directly mailed Haynes multiple tax refund checks totaling $1,428,592 based on false claims he submitted relating to his businesses.
If convicted, Haynes faces a maximum penalty of 20 years in prison for each mail fraud charge, a maximum penalty of five years in prison for each tax evasion charge, three years in prison for aiding and assisting in the preparation of false return charge and two years in prison for the aggravated identity theft charge. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Phillip R. Sellinger for the District of New Jersey made the announcement.
IRS Criminal Investigation, the Social Security Administration’s Office of the Inspector General and the U.S. Postal Service are investigating the case.
Trial Attorney Sam Bean of the Justice Department’s Tax Division and Assistant U.S. Attorney Fatime Cano for the District of New Jersey are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mangilao Man Sentenced to 70 Months Federal Prison for Drug TraffickingRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Jacob Vance Manibusan, age 34, from Mangilao, Guam was sentenced to 70 months imprisonment. He was charged with Conspiracy to Distribute Five Grams or More of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 846 and two counts of Distribution of Five Grams or More of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered four years of supervised release and a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
From November 2020 to January 31, 2021, Manibusan conspired with others to distribute methamphetamine in Guam. Law enforcement made an undercover purchase of methamphetamine on two occasions. As the organizer of the conspiracy, Manibusan had his then girlfriend and co-defendant, Annalyn Tenorio, assist him with the transactions. The drugs weighed 33.21 grams with a purity of 77%.
This is the defendant’s second federal conviction.
“Repeat offenders are subject to substantial penalties in federal court,” stated United States Attorney Anderson. “Hopefully this sentence will act as a deterrent to future criminal conduct. I applaud the work of DEA in bringing this defendant to justice.”
“With the rising crime rates on Guam, DEA understands the impact of the Methamphetamine epidemic. This drug has destroyed families and most importantly children’s lives ,” said Resident Agent in Charge Kenneth L. Bowman, Guam Regional Office. “We will continue our mission to pursue anyone involved in drug trafficking.”
This investigation was conducted by the Drug Enforcement Administration and prosecuted by Stephen F. Leon Guerrero, Assistant United States Attorney in the District of Guam.
Justice Department Secures $4.14 Million Settlement for Student-Athletes to Remedy Title IX Violations at University of Maryland, Baltimore CountyRead the Press Release
The Justice Department announced today a settlement agreement with the University of Maryland, Baltimore County (UMBC) to resolve the department’s findings that UMBC allowed a former head coach of the swimming and diving team to sexually harass male student-athletes and discriminate against female student-athletes for years. The department conducted its investigation under Title IX of the Education Amendments of 1972 (Title IX).
“A school’s responsibility is to protect its students, not abusers who seek to exploit their positions of power,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The young student-athletes at UMBC experienced a double betrayal: their coach’s prolonged abuse compounded by their university’s utter failure to acknowledge, respond to or remedy this egregious conduct. UMBC has now taken full responsibility for its failures and has expressed its commitment to addressing them and rebuilding the trust of its community. The Justice Department recognizes the brave and resilient student-athletes who came forward and continue to come forward to share their stories with us. This settlement should send a resounding message to our nation’s colleges and universities: sexual assaults and harassment of students will not be tolerated.”
The department found that in 2015, students reported that the head coach may have used a camera to film them while they showered in a UMBC locker room. Rather than investigate this report or take action to protect students, UMBC administrators warned the coach that campus police planned to search his locker, thwarting the criminal investigation. In 2019, a student reported unwanted sexual touching and harassment by the coach of male swimmers and again, UMBC failed to investigate or otherwise respond. The department also found that during this time, UMBC did not respond to female students’ reports of sex discrimination, including dating violence, while on the team. As a result of these glaring failures by the university, student-athletes were subjected to ongoing sexual abuse, harassment and other sex discrimination by their coach for years.
UMBC has agreed to pay up to $4.14 million in financial relief to student-athletes who were subjected to sex discrimination by the former head coach. Under this settlement agreement, UMBC will also:
- Significantly improve UMBC’s process for responding to complaints of sex discrimination;
- Provide additional resources and staffing for its Title IX compliance program, including a permanent Title IX Coordinator;
- Provide a full-time support person for those who have experienced sexual assault;
- Deliver training to student-athletes and athletics department employees on healthy relationships, intimate partner violence, power dynamics within the coach-athlete relationship and retaliation;
- Create and enforce a policy outlining expectations for coaching staff behavior and
- Administer surveys to student-athletes about their experiences with sex discrimination and take all necessary and appropriate corrective action.
The department will monitor UMBC’s implementation of the agreement, which will remain in place through the 2028-2029 academic year. View a summary of the agreement here.
Attorneys from the Justice Department’s Civil Rights Division’s Educational Opportunities Section and an Assistant U.S. Attorney for the District of Maryland conducted the investigation, with UMBC’s full cooperation.
Individuals with information related to the department’s findings are encouraged to contact the Justice Department at [email protected].
The month of April is observed as Sexual Assault Awareness Month. The enforcement of Title IX, which prohibits sex discrimination, including sexual harassment and assault, in education programs and activities operated by recipients of federal financial assistance, is a top priority of the Civil Rights Division. This settlement is part of the division’s work to combat sexual harassment and follows the division’s resolution of investigations involving allegations of sexual assault of students at San José State University and at Case Western Reserve University. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at www.civilrights.justice.gov/report/.
Alabama Man Arrested on Federal Dog Fighting and Firearms ChargesRead the Press Release
A federal grand jury indicted an Alabama man on charges of illegally possessing dogs for fighting purposes and illegally possessing three firearms subsequent to a felony conviction.
The U.S. District Court for the Northern District of Alabama unsealed the indictment in conjunction with the arrest today of Carlton Lenard Adams, 51, of Bessemer and Adger. According to court documents filed in this case, Adams maintained a stock of 78 fighting dogs at three properties – two in Bessemer and one in Adger – and all were rescued by federal authorities.
Agents also recovered tools and supplies used in the training and keeping of dogs used for fighting. This included modified treadmills to hold dogs in place for dog fight conditioning, injectable veterinary steroids, suture materials and syringes, skin staplers, a homemade breeding stand used to immobilize female dogs who are too aggressive to mate naturally and a break stick device used to break the bite hold of a dog during specified intervals in a dog fight.
The defendant was further found to possess two pistols and a semi-automatic shotgun known colloquially as a “Street Sweeper.” The latter is considered as not just a firearm but a “destructive device” under federal law.
The dogs were rescued and cared for by a program administered by the U.S. Marshals Service. Following a separate, successful civil forfeiture action brought by the U.S. Attorney’s Office for the Northern District of Alabama, the dogs did not have to be returned to the defendant, but could instead be rehabilitated and evaluated for possible adoption.
If convicted, Adams faces a maximum penalty of up to 15 years in prison and a $250,000 fine on each firearms charge. He also faces a maximum penalty of five years in prison and a $250,000 fine per count of animal fighting charges. Under federal law, it is illegal to fight animals and to possess, train, transport, deliver, receive, buy or sell animals intended for use in an animal fighting venture.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) and U.S. Attorney Prim Escalona for the Northern District of Alabama made the announcement.
The U.S. Department of Agriculture’s Office of Inspector General, FBI and Alabama Law Enforcement Agency are investigating the case.
Senior Trial Attorney Ethan Eddy of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Ryan Rummage for the Northern District of Alabama are prosecuting the case. Assistant U.S. Attorney Austin Shutt for the Northern District of Alabama handled the civil forfeiture case, which ensured that the dogs did not have to be returned to the defendant.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Sues Business Operating in Four States and Its Owners to Stop Tax Preparation FraudRead the Press Release
The Justice Department today filed a civil injunction suit in the U.S. District Court for the Northern District of Texas seeking to permanently bar Mayuen K. Ajak, Yier B. Deng, Bol C. Guot, Gabriel M. Kuot and Golden D4 Heart Tax Services LLC from owning or operating a tax preparation business and preparing tax returns. The complaint also requests that the court require the defendants to disgorge the return preparation fees they obtained by preparing allegedly false or fraudulent tax returns.
According to the complaint, Ajak, Deng, Guot and Kuot incorporated Golden D4 Heart Tax Services LLC in Texas in 2018. They currently operate tax preparation stores in Texas, Missouri, Nebraska and Arizona under the name Golden Heart Tax Services LLC.
The complaint alleges that the defendants, as well as those acting in concert with the defendants or at their direction, prepared and filed tax returns to falsely increase customers’ refunds. The defendants profit through high and often undisclosed preparation fees, at the expense of customers and the Treasury. According to the complaint, the IRS estimates the harm to the United States in the form of underreported income and unpaid taxes from the defendants’ misconduct could exceed $10 million.
The complaint describes the various schemes the defendants, and those acting on their behalf, utilized to make unlawful claims on customers’ tax returns and to overstate their refunds, including:
• Falsely claiming the Earned Income Tax Credit;
• Fabricating businesses and related business income and expenses;
• Claiming false fuel tax credits;
• Claiming fabricated COVID-19-related tax credits; and
• Claiming false education credits.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
U.S. v. Ajak et al Filed Complaint.pdfJustice Department Seeks Injunction against Washington Tax Return Preparer for Allegedly Filing Tax Returns with False ClaimsRead the Press Release
The Justice Department filed a complaint today in the District Court for the Eastern District of Washington against Donald J. Taylor, a former IRS revenue agent and registered enrolled agent, who left the IRS in 2008 to work as a paid tax return preparer in Kennewick, Washington. The civil complaint seeks to bar Taylor from owning or operating a tax return preparation business and preparing federal income tax returns for others. The United States also seeks an order requiring Taylor to disgorge to the United States his ill-gotten tax preparation fees.
The complaint alleges that Taylor filed tax returns for customers that were riddled with errors, fabrications and fraudulent entries. The United States alleges Taylor’s main scheme involved taking advantage of the differences between running a business as a sole proprietorship and an S corporation. A sole proprietor is someone who owns an unincorporated business by themselves and reports any income and expenses on Schedule C Profit or Loss from Business (Sole Proprietorship) of their individual tax returns. S corporations are corporations no different from any other corporation under state law that are not subject to federal income tax at the corporate level. An S corporation reports income, deductions and loss on a separate corporate tax return and then issues a Schedule K-1 (Form 1065) to the shareholder, who reports items of income, deduction, loss or credit on their own tax return.
As the complaint asserts, Taylor prepared false corporate and individual income tax returns by abusing the S corporation requirements under the Internal Revenue Code to reduce customers’ overall tax liabilities. According to the complaint, Taylor did this (1) by fabricating businesses and related business expenses or willfully or recklessly claiming false or unsubstantiated business deductions; (2) taking deductions for employee paid expenses and employer reimbursements without an accountable plan or reimbursement policy, which is against IRS regulations and (3) unreasonably decreasing the amount of wages employee-shareholder customers receive and correspondingly increasing the amount of S corporation distributions made to them to reduce their tax liability.
By repeatedly understating customers’ tax liabilities, the complaint alleges that Taylor caused the United States harm of an estimated $42 million dollars in lost tax revenue between 2017 and 2020.
According to the complaint, Taylor’s conduct is more serious because he continued his abusive actions despite being previously penalized twice by the IRS for recklessly or willfully understating customers’ liabilities from 2007 through 2010.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers tips on choosing a tax professional as a small business taxpayer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
USA v. Taylor Complaint.pdfJustice Department Secures Agreement with Security Services Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with Securitas Security Services USA Inc. (Securitas), a protective services company with locations throughout the United States. The agreement resolves the department’s determination that certain Securitas locations violated the Immigration and Nationality Act (INA) by discriminating against non-U.S. citizens when checking their permission to work in the United States.
“Employers cannot restrict the types of documents workers can use to prove their permission to work,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department continues to ensure that all workers, regardless of citizenship, immigration status or national origin, are allowed to present valid documents of their choice to prove their permission to work.”
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) determined that from at least Feb. 3, 2020, to Dec. 20, 2021, Securitas’ East Bay area locations, located in the cities of Concord and Fremont, California, routinely required lawful permanent residents to present a specific immigration document when checking their permission to work. In addition, the department determined that, between Feb. 3, 2020, and June 23, 2022, the company made similar document demands of other non-citizens with permission to work.
Under the terms of the settlement, Securitas will pay $100,000 in civil penalties to the United States and establish a backpay fund of $75,000 to compensate victims of the company’s discriminatory practices, including those who were fired or lost work because they could not comply with the company’s discriminatory document demands. Securitas has also agreed to train its personnel on the INA’s requirements, review its employment policies and be subject to monitoring by the department.
Federal law allows all workers to choose which valid, legally acceptable documentation to present to prove their identity and permission to work, regardless of citizenship status, immigration status or national origin. The INA’s anti-discrimination provision prohibits employers from asking for specific or unnecessary documents because of a worker’s citizenship status, immigration status or national origin. Indeed, many non-U.S. citizens, including lawful permanent residents, are eligible for several of the same types of documents to prove their permission to work as U.S. citizens are (for example, a state ID or driver’s license and an unrestricted Social Security card). Employers must allow workers to present whatever acceptable documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine.
IER is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee, unfair documentary practices and retaliation and intimidation.
Find more information on how employers can avoid discrimination when verifying someone’s permission to work on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify), or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a live webinar or watch an on-demand presentation or visit IER’s English and Spanish websites. Subscribe for email updates from IER.