District Not Recorded

The Justice Department, together with the Federal Trade Commission (FTC), announced that Williams-Sonoma Inc. (Williams-Sonoma) has agreed to a settlement that requires it to pay more than $3 million in civil penalties and stop making false and misleading claims about the origins of its products.

In a complaint filed in the U.S. District Court for the Northern District of California, the government alleges that home products company Williams-Sonoma, doing business as Williams Sonoma Home, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, PBTeen, West Elm and Rejuvenation, violated an FTC administrative order that prohibits it from advertising wholly imported products and products containing significant imported content as “Made in the USA” in violation of the FTC Act and the Made in USA Rule.

In the stipulated order resolving this case, Williams-Sonoma admits the truth of the complaint’s allegations and agrees to pay a $3,175,387 civil penalty. The order also enjoins Williams-Sonoma from making misleading or unsubstantiated country-of-origin claims and includes recordkeeping and reporting obligations to ensure the company’s future compliance.

“The Justice Department will vigorously enforce laws to stop deceptive advertisers from making misleading and fraudulent claims to sell products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Williams-Sonoma misled consumers by touting products as made in the USA when at least one of them was made in China. We will continue to work with the FTC to stop deceptive marketing practices like this.”

“Williams-Sonoma claimed its products were made in the United States even though they were made in China,” said FTC Chair Lina M. Khan. “Williams-Sonoma’s deception misled consumers and harmed honest American businesses. Today’s record-setting civil penalty makes clear that firms committing Made-in-USA fraud will not get a free pass.”

Trial Attorney Mary M. Englehart and Assistant Director Zachary Dietert of the Civil Division’s Consumer Protection Branch, as well as Assistant U.S. Attorney David DeVito for the Northern District of California and Julia Ensor of the FTC’s Bureau of Consumer Protection, handled the matter.

For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov.

Yesterday, the Departments of Justice and Commerce launched the Disruptive Technology Protection Network with Japan and the Republic of Korea (ROK), hosting the first high-level trilateral summit in Washington, D.C. The creation of this network follows an August 2023 Camp David summit between the leaders of the three countries, during which they committed to expanding collaboration on technology protection measures and building connections between representatives of the U.S. Disruptive Technology Strike Force and Japan and ROK counterparts. The Disruptive Technology Protection Network expands information-sharing and the exchange of best practices across the three countries’ enforcement agencies.

“Keeping sensitive technology out of the wrong hands is a global problem and demands a global response,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Our partnerships with like-minded nations are critical to our ability to succeed, and we are proud to join forces with Japan and the Republic of Korea in forming the Disruptive Technology Protection Network.”

The meeting was hosted by Assistant Attorney General Olsen and Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department’s Bureau of Industry and Security, the two co-leads of the Disruptive Technology Strike Force. The Strike Force, established in February 2023, is an interagency law enforcement effort aimed at preventing critical technologies from being acquired by authoritarian regimes and hostile nation-states.

Assistant Attorney General Olsen and Assistant Secretary Axelrod were joined by Hyeon-Wook Kim, Secretary to the President of the ROK for Economic Security; Soonjeong Kwon, Deputy Minister of Justice, Head of the Prosecution Service Bureau (ROK); Woohyuk Choi, Director General for the Bureau of Trade Controls Policy at the Ministry of Trade, Industry, and Energy (MOTIE) (ROK); IGARI Katsuro, Director General of the Trade Control Department at Japan’s Ministry of Economy, Trade and Industry (METI); and TSUTSUI Hiroki, Director General of Japan’s Foreign Affairs and Intelligence Department.  Deputy Attorney General Lisa Monaco delivered opening remarks for the event, highlighting the successes of the Strike Force and the importance of international partnerships.

“Preventing sensitive technologies from being acquired by authoritarian regimes and hostile nation-states is not only a critical endeavor, but a shared one,” said Assistant Secretary Axelrod. “Today’s Summit formally launches our work with our partners in South Korea and Japan, as we join together to prevent our countries’ most sensitive items from getting into the world’s most dangerous hands.”

The United States, Japan and the ROK enjoy strong trade relationships and law enforcement cooperation. Recognizing that violations of export controls or other laws prohibiting the illicit transfer of technology threaten their respective national security interests, the delegations agreed that combating illicit technology transfer is a critical national and economic security imperative and agreed to further enhance cooperation and information sharing through the signing of two memoranda of intent between the three countries.

Over the course of the day, delegates shared updates on their respective technology protection efforts, presented case studies about recent enforcement actions, and provided overviews of their key enforcement authorities. The summit ended with a comprehensive discussion of practical next steps to execute the newly-signed memoranda and concurrence on the network’s near- and medium-term goals.

The delegations included representatives from the following agencies:

The United States

• The Department of Justice
• The Department of Commerce
• The Department of Homeland Security’s Homeland Security Investigations
• The Department of Defense’s Defense Criminal Investigative Service

Japan

• The National Police Agency
• The Ministry of Economy, Trade, and Industry (METI)
• The Ministry of Finance, Customs and Tariff Bureau

The Republic of Korea

• The Office of the President
• The Ministry of Trade, Industry, and Energy (MOTIE)
• The Ministry of Justice
• The Ministry of Foreign Affairs
• The Customs Service

In August 2023, President Biden welcomed Japanese Prime Minister Kishida and ROK President Yoon to a historic trilateral summit at Camp David, the first-ever stand-alone summit of leaders from the United States, Japan and ROK, and the first summit of foreign leaders at Camp David during the Biden-Harris Administration. The leaders jointly inaugurated a new era of trilateral partnership and reaffirmed that cooperation between the United States, Japan and ROK advances the security and prosperity of our people, the Indo-Pacific region and the world. Among other priorities, the leaders committed to building connections between the Disruptive Technology Strike Force representatives and their Japan and ROK counterparts.

Additional information about the Camp David Summit is available here.

 

A Maryland woman pleaded guilty today to failing to pay employment taxes to the IRS and embezzling from an employee benefit plan.

According to court documents and statements made in court, Michelle Leach-Bard, of Lutherville-Timonium, was the owner and sole corporate officer of iProcess Online Inc., a third-party accounting company that specialized in payroll, human resources and bookkeeping. From at least October 2016 through the end of 2021, she was, as iProcess’s sole corporate officer, responsible for withholding Social Security, Medicare and income taxes from employees’ wages and paying those wages to the IRS. Though the taxes were withheld from employees wages, Leach-Bard did not pay them to the IRS, as she was required to do.

In total, Leach-Bard caused a tax loss to the IRS of $2,663,264.12.

In addition, iProcess had a Section 401(k) Profit Sharing and Retirement Plan for the benefit of some of its employees. Contributions to the 401(k) Plan were deducted from participating employees’ wages. Beginning in or around 2007, Leach-Bard did not pay those employee contributions to the 401(k) Plan. In total, Leach-Bard did not pay to the 401(k) plan approximately $207,180.41 in wages that had been withheld from employees’ paychecks. Additionally, Leach-Bard did not make approximately $18,740.37 in employer matching contributions for certain employees.

Leach-Bard is scheduled to be sentenced on Aug. 20 and faces a maximum penalty of five years in prison for both the tax and embezzlement charges. 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 made the announcement.

IRS Criminal Investigation and the Department of Labor’s Employee Benefits Security Administration are investigating the case.

Trial Attorneys Catriona Coppler and Jeffrey McLellan of the Tax Division are prosecuting the case.

A Minnesota woman was sentenced today to 15 months in prison for preparing false tax returns on behalf of her clients.

According to court documents and statements made in court, Kymberly Starr owned and operated The Tax Lady, also known as 5 Starr Business Solutions, a tax preparation business in Maryland. From 2013 to at least 2018, Starr inflated her clients’ tax refunds by preparing and submitting to the IRS false tax returns that claimed fraudulent tax deductions and fictitious business profits and losses. Starr’s conduct resulted in approximately $400,000 of tax loss to the IRS.

Additionally, in 2020 and 2021, Starr obtained over $83,000 in COVID-19-related Paycheck Protection Program (PPP) loans by submitting fabricated IRS forms containing purported bogus businesses and business income. Starr also used fabricated federal tax forms to file a false claim for unemployment insurance with the Maryland Department of Labor, from which she received over $55,000.

In addition to her prison sentence, U.S. District Judge Theodore D. Chuang for the District of Maryland ordered Starr to serve one year of supervised release and to pay approximately $539,043 in restitution to the United States and Maryland.

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

IRS Criminal Investigation investigated the case.

Trial Attorneys Shawn Noud and Ezra Spiro of the Tax Division prosecuted the case.

A federal jury in Charlotte, North Carolina, convicted two tax attorneys and an insurance agent of conspiring to defraud the United States and helping clients file false tax returns based on their promotion and operation of a fraudulent tax shelter. 

According to court documents and evidence presented at trial, from 2011 to November 2022, Michael Elliott Kohn and Catherine Elizabeth Chollet, both attorneys and residents of St. Louis, and David Shane Simmons, a licensed insurance agent and broker based out of Jefferson, North Carolina, promoted, marketed and sold to clients a fraudulent tax scheme known as the Gain Elimination Plan. 

The defendants designed the plan to conceal their clients’ income from the IRS by inflating business expenses through fictitious royalties and management fees. These fictitious fees were paid, on paper, to a limited partnership largely owned by a charity. In reality, Kohn and Chollet fabricated the fees.

Kohn and Chollet advised clients that the plan’s limited partnership was required to obtain insurance on the life of the clients to cover the income that was allocated to the charitable organization. The death benefit was directly tied to the anticipated profitability of the clients’ businesses and how much of the clients’ taxable income was intended to be sheltered.

Simmons earned more than $2.3 million in commissions from selling the insurance policies, splitting the commissions with Kohn and Chollet.  Kohn and Chollet received more than $1 million from Simmons. Simmons also filed false personal tax returns that underreported his business income and inflated his business expenses, resulting in a tax loss of more than $480,000.

In total, the defendants caused a tax loss to the IRS of more than $4 million.

A sentencing date has not been set. They face a maximum penalty of five years in prison for the conspiracy charge and a maximum penalty of three years in prison for each charge of aiding and assisting in the preparation of false tax returns. Simmons also faces a maximum penalty of three years in prison for each count of filing false personal tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dena J. King for the Western District of North Carolina made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Kevin Schneider and Todd Ellinwood of the Tax Division and Assistant U.S. Attorney Caryn Finley for the Western District of North Carolina are prosecuting the case.

A Minnesota businessman was sentenced today to 21 months in prison for evading the payment of federal individual income taxes he owed for the years 2007 through 2019.

According to court documents and statements made in court, Robert Wayne Schlosser owned and operated Custom Christmas Lighting, a business that installs Christmas lighting, special event lighting and decoration displays for its customers. In 2018, Schlosser filed for bankruptcy and listed the IRS as a creditor. At that time, Schlosser had unpaid debts due to the IRS going back to 2007.

As part of his bankruptcy, Schlosser was required to sign and file, under penalty of perjury, a bankruptcy petition and schedules providing information regarding his assets, income and other financial affairs. But the schedules he filed contained materially false statements and omissions regarding his assets and income. Schlosser also testified during bankruptcy proceedings and made materially false statements, specifically about his ownership of two speedboats. Schlosser evaded payment of his federal income taxes by filing false bankruptcy schedules and making false statements during bankruptcy proceedings that concealed assets from the IRS.

Schlosser’s conduct resulted in a total tax loss to the IRS of $429,848.

In addition to the prison sentence, U.S. District Judge Katherine M. Menendez for the District of Minnesota ordered Schlosser to serve three years of supervised release and pay a fine of $25,000 and $279,897.09 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 Andrew M. Luger for the District of Minnesota made the announcement.

IRS Criminal Investigation investigated the case. United States Trustee Trial Attorney Colin Kreuziger assisted with the investigation.

Trial Attorney Thomas Flynn of the Justice Department’s Tax Division prosecuted the case.

The Justice Department’s Antitrust Division and Federal Trade Commission (FTC) today jointly submitted a public comment to the Federal Energy Regulatory Commission (FERC) urging it to consider the competitive risks of common ownership when assessing acquisitions involving less than a controlling interest in competing firms.

As the Justice Department and FTC’s joint comment explains, competition is a core component of FERC’s “public interest” analysis in its Section 203 review. The joint comment states that partial acquisitions, including acquisitions involving common ownership in which individual investors hold non-controlling interests in firms that have a competitive relationship that could be affected by those joint holdings, can lessen competition in three ways. First, partial acquisitions can give the partial owner the ability to influence the competitive conduct of the target firm. Second, partial acquisitions can reduce incentives for firms to compete even absent direct control or influence. Third, partial acquisitions can facilitate an anticompetitive information exchange between competing firms by giving them or their common owners access to non-public, competitively sensitive information.

FERC is requesting public comments as it reviews its current policy on financial investment company ownership of electric utilities, specifically regarding FERC’s blanket authorizations for investment company ownership of public utilities under Section 203 of the Federal Power Act. Under its current policy, FERC assumes that certain transactions are in the public interest and grants blanket authorizations approving the transactions.

The agencies applaud FERC for undertaking this inquiry and encourage FERC to consider the competitive consequences of common ownership in deciding whether to revise its current blanket authorization policy.

The Justice Department filed a civil complaint today in the U.S. District Court for the Eastern District of California against a California tax return preparer.

The complaint seeks to enjoin Maria Guitron, also known as Maria Lopez, both individually and doing business as Angel’s Bookkeeping & Tax Service, from owning or operating a tax return preparation business and preparing federal income tax returns for others.

The complaint alleges that Guitron and others at Angel’s Bookkeeping & Tax Service, which is in Modesto, have allegedly prepared tax returns for customers that falsely understated their federal income tax liabilities by fabricating businesses and business expenses and fabricating and inflating deductions for child, dependent and education expenses.

The complaint goes on to allege that from 2011 to 2019, the IRS sent Guitron at least 11 letters notifying her of issues with the tax returns she prepared or sought improvements in her preparation. The complaint also alleges the IRS previously found that Guitron had violated due diligence requirements when determining her customers’ eligibility for tax credits in 2013 and 2014, imposing fines of $23,000 against her in 2015. Despite repeated written warnings and prior fines, Guitron and Angel’s Bookkeeping & Tax Service allegedly continued to prepare and file thousands of false tax returns every year.

As the complaint states, the IRS reviewed tax returns from 2019 through 2023 and interviewed a random sample of 51 customers of Angel’s Bookkeeping & Tax Service from the 2019 tax year. According to the complaint, the IRS found that of those 51 customers, 38 had returns that understated their tax liabilities, resulting in approximately $103,474 in lost tax revenue to the United States from those returns alone. The complaint alleges that Guitron and Angel’s Bookkeeping & Tax Service have prepared and filed more than 2,000 tax returns each year since 2019, likely resulting in millions of dollars each year in direct financial harm to the United States in lost tax revenue. Guitron’s conduct also allegedly harmed customers by exposing them to statutory penalties and accruing interest for tax underpayments.

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

Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant against dishonest tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS 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.

Guitron Complaint Filed.pdf

Assistant Attorney General Amy L. Solomon of the Office of Justice Programs and Director Kristina Rose of the Office for Victims of Crime today recognized eight individuals and organizations for their advocacy, innovation and research on behalf of victims of crime.

“We recognize the individuals and organizations represented here that go above and beyond to assist others in their time of crisis,” said Assistant Attorney General Solomon. “They are the ones who ensure that crime victims and survivors aren’t forgotten. They provide them with the support they need today and the encouragement and hope they will need tomorrow.”

The event’s theme, “How would you help? Options, services, and hopes for crime survivors,” is a call-to-action for society to create safe environments for crime victims to share what happened to them. By doing so, we’re able to offer support, options for life-saving services and, most importantly, hope.

“Since 1981, the nation has formally honored victim service providers and allied professionals, many of whom were driven to this work because of trauma they experienced personally,” said Director Rose. “It is an honor to recognize these individuals and organizations for dedicating themselves not only to making a difference to victims and survivors of crime, but to entire communities and society as a whole.”

The following is a list of the 2024 NCVRW award recipients:

• The Allied Professional Award recognizes individuals from a specific discipline that work alongside the victim assistance field. Recipients:
  • Director Joan Meunier-Sham, MS, RN, of the Massachusetts Sexual Assault Nurse Examiner Program, Boston
  • Jocelyn Mejia, social worker, Imperial County Department of Social Services, Children and Families Division, El Centro, California
• The Building Knowledge Through Research Award recognizes individual researchers or research teams that made a significant contribution to the nation’s understanding of crime victim issues. Recipients:
  • Michelle S Ballan, Ph.D., MSW, Professor and Associate Dean for Research, School of Social Welfare and Director, Leadership Education in Neurodevelopmental and related Disabilities Center, Stony Brook University, Stony Brook, New York
  • Hope Research Center, The University of Oklahoma, Tulsa, Oklahoma
• The National Crime Victim Service Award honors extraordinary efforts to provide direct services to crime victims. Recipients:
  • Angela McCown, LMFT, Director, Victim Services Division, Texas Department of Criminal Justice, Austin, Texas
  • Herman Millholland, Independent Consultant, Millholland & Associates, Los Angeles
• The Survivor Voices Award honors crime victims and survivors whose perseverance and determination in the aftermath of victimization was the catalyst for implementing. Recipient:
  • Aswad Thomas, MSW, Vice President, Alliance for Safety and Justice & National Director of Crime Survivors for Safety and Justice, Atlanta
• Tomorrow’s Leader Award honors a youth who has dedicated their efforts to supporting survivors. Recipient:
  • Elijah Lee, Youth Activist, Hear Our Voices, Virginia

During National Crime Victims’ Rights Week, victim advocacy organizations, community groups as well as state, local and Tribal agencies traditionally host rallies, candlelight vigils and other events to raise awareness of victims’ rights and services.

To learn more about NCVRW and past award recipients, visit www.ovc.ojp.gov/ncvrw.

An Illinois man pleaded guilty today in connection with a years-long fraud conspiracy to roll back the odometer readings on hundreds of used cars.

According to court documents, Laith Ghzo, 37, of Oak Lawn, admitted that he purchased high-mileage vehicles at auto auctions and caused the odometers of those vehicles to be rolled back to false, lower mileage readings. Ghzo also admitted that he then altered the rolled back vehicles’ title paperwork to match the false and lower mileage readings, and subsequently submitted those altered titles to the Illinois Secretary of State to obtain “clean” titles reflecting the false, lower mileage. With the false and lower mileage titles, Ghzo then sold the vehicles to other unsuspecting car dealers, who then sold them to unsuspecting consumers.

“According to the National Highway Traffic Administration, odometer fraud causes more than $1 billion per year in losses to consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Odometer fraud is a crime that predominately affects the economically vulnerable, who are simply looking for transportation to work or to school but who cannot afford to purchase a new car. We thank our partners for bringing this matter to our attention.”

Ghzo pleaded guilty to conspiracy to commit securities fraud. He is scheduled to be sentenced on Oct. 1 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The National Highway Traffic Safety Administration’s Office of Odometer Fraud Investigation and U.S. Postal Inspection Service are investigating the case.

Trial Attorneys Joshua D. Rothman and Thomas S. Rosso of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Kartik Raman for the Northern District of Illinois are prosecuting the case.

A superseding indictment was returned yesterday by a federal grand jury in Denver charging four people with conspiring with Larry Conner and Timothy McPhee to defraud the IRS. Connor and McPhee had previously been indicted for conspiring to defraud the IRS related to the same scheme in September 2023.

According to the superseding indictment, from February 2018 until September 2023, Marcia Predmore, Roderick Prescott, Suzanne Thompson and Weldon Wulstein allegedly conspired with Conner, McPhee and others to promote, sell and implement an abusive-trust tax shelter scheme. The superseding indictment further charges Thompson and Wulstein with assisting in the preparation of false income tax returns on behalf of clients who used the shelter. Predmore and McPhee had previously been charged with tax evasion related to their use of the tax shelter to conceal their own income from the IRS. Conner and McPhee had also previously been charged with assisting in the preparation of false income tax returns on behalf of clients who used the shelter.

According to the superseding indictment, the shelter was marketed as a way for business owners to avoid paying federal income taxes on nearly all of their business income. Conner and McPhee allegedly instructed clients to use the fraudulent tax shelter by assigning nearly all of their business income to a series of sham trusts and a purported “private family foundation” to create the illusion that the income did not belong to the client. Conner and McPhee then allegedly referred the clients to handpicked tax-return preparers for the preparation of false individual income tax returns that did not report the income assigned to the trusts or that was donated to the foundation. In reality, however, the clients allegedly retained full control and use of that income. Although the income assigned to the sham trusts was reported on tax returns for the trusts, those tax returns allegedly offset the income with improper deductions, including donations, to report $0 in taxes owed.

As to Prescott, the superseding indictment charges that through his business, The Stewardship Institute, Prescott promoted the “private family foundation” that was advertised as the final step of the tax shelter. Prescott allegedly taught about the foundation at workshops he hosted with Conner, McPhee, Predmore and others. Prescott allegedly advised clients how to spend the funds “donated” to their private family foundations for their own personal use and to disguise the transactions to make them appear charitable. Prescott also allegedly oversaw the preparation of the instruments used to create the so-called private family foundations.

The superseding indictment alleges that Conner, McPhee and Predmore referred clients to Thompson for bookkeeping services and Wulstein for return preparation services. Thompson allegedly operated a bookkeeping firm called The CFO Agency; Wulstein allegedly operated a return preparation firm called Wulstein Financial Services. Thompson and her employees allegedly prepared financial statements for clients who used the abusive-trust tax shelter and sent those financial statements to Wulstein for the preparation of false tax returns.

If convicted, each defendant faces a maximum penalty of five years in prison for conspiring to defraud the United States. Conner, McPhee, Thompson and Wulstein also face a maximum penalty of three years in prison for each count of assisting in the preparation of a false tax return. McPhee and Predmore face a maximum sentence of five years in prison for each count of tax evasion. 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.

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

A federal grand jury in Seattle returned an indictment today charging a Washington man with tax evasion and the filing of false tax returns related to a scheme to conceal income received from his commercial property business.

According to the indictment, from at least 2015 to 2020, Steven Loo allegedly controlled and operated eight companies that owned commercial real estate. Each was managed by independent property management companies, which were responsible for managing the day-to-day operations of the real estate. Loo allegedly diverted the income he earned from his real estate by instructing the property management companies to issue checks, categorized as asset management fees, to two other entities that Loo controlled. Loo allegedly knew that the funds deposited into these bank accounts, totaling more than $4.8 million, were income to him and that he was required to report and pay tax on the funds. Nevertheless, Loo allegedly filed tax returns for 2015 through 2020 that did not report or pay tax on these funds.

By his conduct, Loo allegedly caused a tax loss to the IRS of over $1.6 million.

If convicted, Loo faces a maximum penalty of five years in prison for each tax evasion counts and a maximum penalty of three years in prison for each of the false tax return counts. 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 Tessa M. Gorman for the Western District of Washington made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorney Regina Jeon of the Justice Department’s Tax Division and Assistant U.S. Attorneys Michael Dion and Sean Waite for the Western District of Washington 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.

A former Massachusetts golf course manager was sentenced to 13 months in prison yesterday for conspiring to defraud the United States, filing false tax returns and making a false statement to a financial institution.

According to court documents and evidence presented at trial, Kevin Kennedy conspired with a luxury home builder in western Massachusetts to evade taxes he owed on money he received from his management of two municipal golf courses owned by the City of Springfield. The home builder constructed custom homes for Kennedy in East Longmeadow and on Cape Cod. Kennedy paid for much of the homes in cash he received from the golf courses. For the East Longmeadow home, Kennedy and the home builder created two contracts, one with the agreed-upon purchase price and one with a deflated purchase price. The latter contract listed a purchase price that was $160,000 lower than the contract price, which was the amount Kennedy had paid in cash as a down payment to the home builder. To induce the bank to provide him a mortgage for part of the East Longmeadow home, Kennedy submitted the deflated home purchase contract to the bank.

Just prior to trial, Kennedy pleaded guilty to filing false individual income tax returns. According to court documents and statements made in court, for tax years 2009 through 2014, Kennedy filed false tax returns that did not report all the cash and checks he received from his golf course management. In total, Kennedy underreported his income by more than $1 million, resulting in a tax loss to the IRS exceeding $300,000.

In addition to his prison sentence, U.S. District Judge Mark G. Mastroianni for the District of Massachusetts ordered Kennedy to serve three years of supervised release. Judge Mastroianni will determine the amount of restitution at a later date.

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

IRS Criminal Investigation investigated the case.

Assistant Chief Eric B. Powers of the Justice Department’s Tax Division and Assistant U.S. Attorney Neil Desroches for the District of Massachusetts prosecuted the case.

President Joseph R. Biden Jr. today is granting clemency to 16 individuals, consisting of 11 pardons and five commutations.

President Biden is pardoning the following 11 individuals:

Jason Hernandez – McKinney, Texas

Offense: Conspiracy to possess with intent to distribute controlled substances; possession with intent to distribute cocaine base (two counts); possession with intent to distribute, and distribution of, methamphetamine; possession with intent to distribute methamphetamine/cocaine hydrochloride; distribution of a controlled substance within 1,000 feet of a school (three counts); establishing a place for the manufacture and distribution of a controlled substance (two counts); Eastern District of Texas

Sentence: 240 months in prison (as commuted on Dec. 19, 2013); eight years of supervised release; $3,500 fine (as amended by order of Feb. 29, 2016); Oct. 2, 1998

Beverly Denise Holcy, also known as Beverly Canty – Palatka, Florida

Offense: Knowingly, willfully, and intentionally distributing a quantity of cocaine base, commonly known as “crack”; Middle District of Florida

Sentence: 60 months in prison; four years of supervised release; $1,000 fine; June 22, 1994

Jeffrey Alan Lewis – Douglasville, Georgia

Offense: Use of a communication facility to facilitate a felony; Eastern District of Virginia

Sentence: Six months in prison; one year of supervise release; Feb. 17, 2006

Bobby Darrell Lowery – Jackson, Mississippi

Offense: Possession of cocaine base with intent to distribute; felon in possession of a firearm; Northern District of Mississippi

Sentence: 60 months in prison (as amended on Oct. 4, 2000, Sept. 21, 2001, Oct. 3, 2001, and Oct. 11, 2002); five years of supervised release; May 28, 1999

Jesse Mosley, also known as Jessie Mosley – Ponchatoula, Louisiana

Offense: Conspiracy to distribute cocaine; use of a communication facility in furtherance of a drug offense; Eastern District of Louisiana

Sentence: 28 months in prison; five years of supervised release; June 20, 2001

Katrina Polk – Washington, D.C.

Offense: Conspiracy to distribute crack cocaine; Southern District of West Virginia

Sentence: One day in prison; four years of supervised release; July 5, 1988

Glenn Ray Royal Jr. – San Antonio, Texas

Offense: Conspiracy to manufacture, distribute, and possess with intent to distribute cocaine and cocaine base; Western District of Texas

Sentence: 30 months in prison; four years of supervised release; $500 fine; May 23, 1996

Alexis Sutton – New Haven, Connecticut

Offense: Conspiracy to possess with intent to distribute, and to distribute, a mixture and substance containing a detectable amount of heroin; District of Connecticut

Sentence: 48 months of probation; Feb. 25, 2014

Ricky Donnell Tyler, also known as Rick Tyler – Columbia, South Carolina

Offense: Conspiracy to possess with intent to distribute and to distribute cocaine and cocaine base; possession with intent to distribute and distribution of cocaine base (three counts); District of South Carolina

Sentence: Time served (as amended on Aug. 17, 1999, and June 15, 2007); five years of supervised release; Sept. 12, 1996

Stacy L. Wilder – Albany, New York

Offense: Conspiracy to possess and distribute cocaine base; Northern District of New York

Sentence: 70 months in prison; five years of supervised release; Jan. 7, 2003

Pilar Alejandra Yelicie-Rodriguez – Fairfax, Virginia

Offense: Conspiracy to possess with intent to distribute five kilograms or more of cocaine and 50 grams or more of cocaine base; Eastern District of Virginia

Sentence: 42 months in prison (as amended on May 11, 2007); three years of supervised release; Sept. 23, 2004

President Biden is commuting the sentences of the following five individuals:

Daequon Charles Davis – Johnson City, Tennessee

Offense: Conspiracy to distribute or to possess with intent to distribute 280 grams or more of cocaine (Eastern District of Tennessee).

Sentence: 262 months in prison; 10 years of supervised release (July 13, 2017).

Commutation Grant: Sentence commuted to a term of 120 months, leaving intact and in effect the 10 years of supervised release with all its conditions and all other components of the sentence.

Jophaney Hyppolite – Miami

Offense: Conspiracy to possess with intent to distribute more than 280 grams cocaine base; distribution and aiding and abetting the distribution of cocaine base (Middle District of Florida).

Sentence: Life in prison; 10 years of supervised release (Jan. 22, 2013).

Commutation Grant: Sentence commuted to a term of 360 months in prison, leaving intact and in effect the 10 years of supervised release with all its conditions and all other components of the sentence.

Xavier Martez Parnell – Clarksville, Tennessee

Offense: Conspiracy to distribute and possess with intent to distribute controlled substances, including 500 grams or more of cocaine and 280 grams or more of cocaine base (Middle District of Tennessee).

Sentence: 300 months in prison; 10 years of supervised release (Sept. 18, 2012).

Commutation Grant: Sentence commuted to a term of 210 months, leaving intact and in effect the 10 years of supervised release with all its conditions and all other components of the sentence.

Leshay Nicole Rhoton – Bristol, Tennessee

Offense: Conspiracy to possess with the intent to distribute 280 grams or more of cocaine base and 5 kilograms or more of cocaine (Western District of Virginia).

Sentence: 240 months in prison; 10 years of supervised release (Sept. 5, 2013).

Commutation Grant: Sentence commuted to a term of 150 months in prison, leaving intact and in effect the 10 years of supervised release with all its conditions and all other components of the sentence.

Margaret Ann Vandyke – Ellenville, New York

Offense: Conspiracy to possess with intent to distribute a controlled substance (crack cocaine) (Northern District of New York).

Sentence: 60 months in prison; three years of supervised release (Jan. 19, 2022).

Commutation Grant: Sentence commuted to expire on Aug. 22, leaving intact and in effect the three years of supervised release with all its conditions and all other components of the sentence.

Two bankruptcy petition preparers who hid their involvement while providing unauthorized legal advice to debtors in foreclosure were barred from providing bankruptcy-related services, thanks to enforcement actions by the Justice Department’s U.S. Trustee Program (USTP).

On Feb. 12, the Bankruptcy Court for the Middle District of Florida entered an order permanently enjoining Kafil Hamim Quaiyum Tunsill from acting as a bankruptcy petition preparer in the district. Tunsill was also fined $12,500 and ordered to refund $1,900 to the debtor. Although Tunsill answered the adversary complaint filed by the U.S. Trustee’s office in Orlando, he did not respond to the U.S. Trustee’s motion for summary judgment, which the Bankruptcy Court granted.

On March 29, the Bankruptcy Court for the District of Oregon issued a decision to permanently enjoin Keith Bray and his company Rezidential Group Inc. from acting as bankruptcy petition preparers in Oregon. Bray and Rezidential Group – who did not defend against a complaint filed by the U.S. Trustee’s office in Portland – were also fined $22,500 and ordered to return $3,995 in fees and pay $7,990 in statutory damages to the debtor.

The Bankruptcy Code strictly regulates the services of bankruptcy petition preparers, commonly known as BPPs. BPPs are not attorneys, cannot give legal advice or practice law and generally are limited to typing information provided by debtors into bankruptcy forms for the debtors to file. The Code requires BPPs to disclose information about their fees and services to the debtors and to the bankruptcy court.

“Unscrupulous bankruptcy petition preparers often craft schemes to exploit debtors fearful of losing their homes to foreclosure,” said Director Tara Twomey of the Executive Office for U.S. Trustees. “The Program aggressively roots out BPPs who harm consumers and taint the bankruptcy system through fraud, abuse and the unauthorized practice of law.”

In the Florida case, Tunsill, who used the business name Serving Humanity, located the debtor by reviewing foreclosure dockets. He then knocked on the debtor’s door and offered to help the debtor avoid foreclosure for a fee. He gave the debtor legal advice about bankruptcy and helped prepare and file a chapter 13 bankruptcy case as well as a lawsuit against the debtor’s mortgage servicer, both of which were eventually dismissed. The court’s order against Tunsill noted that he had engaged in fraudulent, deceptive or bad-faith conduct in other cases, including four bankruptcies that he filed for himself.

In the Oregon case, Bray led the debtors to believe he was a licensed attorney in California and told them bankruptcy could help save their home from foreclosure. He directed them to hand copy information he provided onto blank forms and file them with the bankruptcy court. Bray was actually a disbarred attorney who attempted to avoid detection by impersonating a licensed attorney in communications with the chapter 13 trustee. The court’s decision noted similar conduct by Bray and Rezidential Group in several other cases in other districts.

The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the Program at www.justice.gov/ust.

The Justice Department’s War Crimes Accountability Team (WarCAT) Director Christian Levesque and U.S. Special Prosecutor for the Crime of Aggression Jessica Kim traveled to Kyiv, Ukraine, from April 15 to 17, to reaffirm the department’s commitment in advancing accountability for atrocity crimes and Russian aggression against Ukraine. WarCAT Director Levesque and Special Prosecutor Kim were joined by the department’s Resident Legal Advisor posted in Kyiv, Jared Kimball, WarCAT Attorney Advisor Roman Chaban, and the FBI Legal Attaché in Kyiv, Christopher Geiger.

The trip continues the Justice Department’s extensive work supporting Ukraine, building on Attorney General Garland’s June 2022 announcement in Lviv, Ukraine, launching WarCAT to centralize and strengthen the Justice Department’s war crimes accountability efforts, and the June 2023 appointment of a U.S. Special Prosecutor for the Crime of Aggression to work closely with the International Centre for the Prosecution of the Crime of Aggression against Ukraine (ICPA) based at Eurojust in The Hague.    

WarCAT Director Levesque, Ukraine Prosecutor General Andriy Kostin, Special Prosecutor Kim, and FBI Legal Attaché Geiger.

While in Kyiv, the delegation met with key Ukrainian counterparts and their staff on operational matters, including Prosecutor General Andriy Kostin, Head of the International Legal Cooperation Department Zurab Adeishvili, and Head of the War Crimes Department Yuriy Belousov; the National Police of Ukraine’s Head of the Department of Investigation Maksym Tsutskeridze, Head of the Division for Documentation of Crimes Committed in the Context of Armed Conflict Oleksandr Shapovalov, Head of the International Police Cooperation Department Ivan Hulpa, and Head of the International Communication Division Olha Yevtushenko; members of the Ukrainian Interagency Working Group, including military advisors; and officials from the Security Service of Ukraine. With these partners, WarCAT Director Levesque and Special Prosecutor Kim discussed ongoing investigations, information-sharing, and technical cooperation, as well as the various legislative, procedural, and technical challenges associated with such investigations and potential solutions.

 U.S. delegation with officials of the National Police of Ukraine.

The delegation visited the International Criminal Court’s Field Office in Kyiv and met with partners from the Atrocity Crimes Advisory Group to increase partnership and coordination on the situation in Ukraine. They also met with U.S. Ambassador to Ukraine Bridget Brink and Deputy Chief of Mission Robert Needham, and provided an overview of the Justice Department’s Ukraine accountability efforts to U.S. Embassy Kyiv personnel.

On April 16, Special Prosecutor Kim, with ICPA Ukraine team members and military advisors, visited the Kyiv Scientific Research Institute of Forensic Expertise of the Ministry of Justice (KFI), a leading forensic examination institution. The KFI visit provided the opportunity to view weapons debris from recovered ballistic missiles, air-guided missiles, and unmanned aerial vehicles shot down by Ukrainian air defenses over Kyiv and other Ukrainian cities, as well as to receive expert briefings on analyses of weapon components and technologies to further the ICPA’s efforts in securing evidence of Russian aggression.

Special Prosecutor Kim, with ICPA Ukraine team members, receives analysis of weapons debris from recovered ballistic missiles at the KFI from Ukrainian forensic experts. 

On April 17, Resident Legal Advisor Kimball, Special Prosecutor Kim (who previously served as the department’s anti-corruption Resident Legal Advisor for Eastern Europe), and FBI Special Agent Kari Harrison, a skilled anti-corruption investigator, delivered a roundtable workshop for prosecutors and investigators from the Specialized Anti-Corruption Prosecutor’s Office (SAPO) and National Anti-Corruption Bureau (NABU) at the U.S. Embassy in Kyiv. The workshop focused on using racketeering and organized crime statutes to combat high-level public corruption. SAPO and NABU workshop participants engaged in a robust discussion on special investigative techniques, covert and overt investigative steps, legislative and procedural options and barriers, and shared challenges in penetrating and dismantling organized criminal groups. The workshop was part of a series of anti-corruption efforts led by Resident Legal Advisor Kimball, with support from the Department of State’s Bureau of International Narcotics and Law Enforcement to ensure that the rule of law prevails in Ukraine.

FBI Special Agent Harrison, Kyiv Resident Legal Advisor Kimball, and Special Prosecutor Kim deliver an anti-corruption roundtable workshop for SAPO and NABU prosecutors and investigators at U.S. Embassy Kyiv.

During the trip, the group also visited several cultural and heritage sites in Kyiv – targets of Russian aggression – including Zoloti Vorota (Golden Gate), the main entrance into the ancient city of Kyiv; Independence Monument; and Maidan Nezalezhnosti (Independence Square), the central square of Kyiv, which was the site of the pro-independence protests in the 1990s, Orange Revolution in 2004, and Euromaidan Revolution in 2013 and 2014.

 Ukrainian flags and photos honor fallen Ukrainian servicemembers in Maidan Nezalezhnosti (Independence Square), with Independence Monument in the background.

Throughout the visit, the delegation emphasized the department’s commitment in pursuing every avenue of accountability for Ukraine. Additionally, WarCAT Director Levesque and Special Prosecutor Kim further highlighted how the Justice Department, together with its international partners, will continue to hold accountable all those directly responsible or otherwise complicit in Russian aggression against Ukraine.

The Justice Department announced today that it has settled 139 administrative claims arising from allegations of sexual abuse committed by former physician and USA Gymnastics official Lawrence Gerard Nassar.

Over the course of nearly two decades and ending in 2016 when he was arrested by the State of Michigan, Nassar sexually abused hundreds of victims under the guise of performing medical treatments. These settlements will resolve administrative claims against the United States alleging that the FBI failed to conduct an adequate investigation of Nassar’s conduct. In July 2021, the Department’s Office of the Inspector General issued a report critical of certain aspects of the FBI’s response to, and investigation of, allegations against Nassar.

“For decades, Lawrence Nassar abused his position, betraying the trust of those under his care and medical supervision while skirting accountability,” said Acting Associate Attorney General Benjamin C. Mizer. “These allegations should have been taken seriously from the outset. While these settlements won’t undo the harm Nassar inflicted, our hope is that they will help give the victims of his crimes some of the critical support they need to continue healing.”

The settlement agreements, which have been approved by the Department, resolve 139 claims for a total of $138.7 million to be distributed to claimants.

Note: The headline of this press release has been updated to remove the characterization of the number of settlements.

Attorney General Merrick B. Garland and Director Steven M. Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) dedicated a new “Faces of Gun Violence” exhibit today at a ceremony hosted during ATF’s Inaugural Gun Violence Survivors’ Summit. The exhibit honors and memorializes those whose lives have been tragically lost to gun violence.

“As we remember those we have lost to gun violence, the Justice Department promises that we will strive every single day to honor their lives in our work,” said Attorney General Merrick B. Garland. “We promise that we will not rest until every family, every law enforcement agent, and every community is safe from the devastation of gun violence. As our dedicated ATF agents pass by the ‘Faces of Gun Violence’ exhibit every day, it will stand as a powerful monument to those they are fighting for.”

“Today, survivors of gun violence, including those in law enforcement, came together to tell their stories and engage in important discussions about preventing gun violence, which continues to devastate families and communities across the country,” said Deputy Attorney General Lisa Monaco. “I thank the women and men of ATF for the work they do every day to keep our communities safe and for convening this Summit. And I’m especially grateful to today’s participants who have lost loved ones to gun violence and who honor their memories by fighting for a better, safer future.”

“The ‘Faces of Gun Violence’ exhibit is a permanent reminder of what ATF comes to work to do every day — a reminder of why agents risk their lives and why everyone at ATF dedicates their careers to this mission: to honor the fallen and protect the living,” said ATF Director Dettelbach. “This exhibit both honors and tells the stories of the victims of firearms violence. And it reminds us to keep front and center the lives, the stories, and the courage of those who have been impacted by firearms violence.”

The “Faces of Gun Violence” exhibit consists of a wall and digital kiosk. The wall consists of 118 photos of people who have been killed by gun violence in, among other incidents, mass casualty events, such as school shootings; community shootings; domestic violence shootings, and by suicide. The photographs on the wall will stay up for one year, until another 118 photographs take their place at next year's Gun Violence Survivors' Summit. 

Alongside the wall is the digital kiosk, which contains the same photographs with accompanying short biographies for each person. The kiosk will remain for the foreseeable future, and new photos and bios will be added after each year’s dedication on a rolling basis as they are submitted. 

The dedication was the final event of the day, concluding ATF’s Inaugural Gun Violence Survivors’ Summit, which brought together more than 200 survivors of gun violence, members of law enforcement, U.S. Attorneys, health care professionals, and victim advocates. The Summit included remarks by Deputy Attorney General Monaco and San Diego District Attorney Summer Stephan, as well as a number of panel discussions that focused on experiences of survivors of gun violence, firearms and domestic violence, law enforcement as survivors, and the effects of secondary trauma. 

By sharing experiences, discussing the toll gun violence takes on lives, and learning about ATF’s mission and efforts to respond and prevent violent crime, the Summit increased understanding and transparency.

A Florida man was sentenced today in federal court to 48 months in prison for his role in laundering the proceeds of scams against American consumers and businesses to co-conspirators located in Nigeria.

According to court documents, Niselio Barros Garcia Jr., 50, of Winter Garden, was part of a network of individuals who laundered proceeds of fraud from romance scams, business email compromises and other fraud schemes. Garcia supplied bank accounts to his co-conspirators for the purpose of receiving proceeds from the scams. After he received the proceeds, Garcia used a cryptocurrency exchange to conceal and transfer the funds in Bitcoin to co-conspirators in Nigeria.

Business email compromises involve criminals hacking or spoofing business email accounts to initiate fraudulent money transfers. Romance scams involve fraudsters creating fake online personas to gain the trust and affection of victims, leading to financial exploitation. These schemes not only cause significant financial losses, but also deeply impact the lives of victims.

Garcia pleaded guilty to conspiracy to commit money laundering in the Southern District of Florida in January. According to Garcia’s plea agreement, Garcia personally laundered over $2.3 million of criminal proceeds. As part of his sentence, Garcia was ordered to forfeit $464,923.91 in proceeds that he personally received from the offense. Four additional defendants have been charged in this scheme but remain at large.

“This case demonstrates the department’s continued commitment to prosecuting transnational fraud and those who knowingly facilitate it,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “By facilitating the concealment of illicit profits, third-party money launderers enable large-scale transnational fraud schemes. This case underscores the department’s commitment to protecting consumers and disrupting the infrastructure that makes these crimes lucrative.”

The FBI Buffalo Field Office investigated the case.

Trial Attorneys Lauren M. Elfner and Matthew Robinson of the Civil Division’s Consumer Protection Branch are prosecuting the case.

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

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.

An Illinois woman was sentenced today to one year and one day in prison for preparing and filing false income tax returns for clients.

According to court documents and statements made in court, Vervia Watts, of Lansing, operated a tax preparation business in Illinois and elsewhere. From at least January 2017 through June 2023, Watts prepared and filed over 900 fraudulent income tax returns for her clients, reporting false education expenses and business income to obtain larger refunds from the IRS than the clients were otherwise entitled to receive. Watts received at least $300 for each return she prepared. The IRS paid approximately $1.3 million in fraudulent refunds.

In addition to her prison sentence, U.S. District Judge Lindsay C. Jenkins for the Northern District of Illinois ordered Watts to serve one year of supervised release and to pay approximately $1,349,314 in restitution to the IRS.

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

IRS Criminal Investigation investigated the case.

Trial Attorneys Meredith Havekost and Regina Jeon of the Tax Division prosecuted the case.

TopBuild Corp. announced its decision today to abandon its proposed $960 million acquisition of its rival, SPI Parent Holding Company (SPI). The abandonment comes after the department’s competition concerns.

The Justice Department issued the following statement from Assistant Attorney General Jonathan Kanter of the Antitrust Division:

“TopBuild’s proposed acquisition of SPI would have harmed competition across the United States by combining two of the largest providers of important building insulation products and eliminating fierce head-to-head competition between them. I am grateful for the tireless efforts of the Antitrust Division’s lawyers, economists, paralegals and professional staff who made this result possible.”

Two operators of several Key West, Florida, labor staffing companies – including PSEB Services Inc., E.S.F. Services Inc. and Expert Services F.S. Inc. – were each sentenced to over three years in prison today for tax and immigration-related crimes.

According to court documents and statements made in court, at various times between January 2014 and October 2019, Zdenek Strnad, Vasil Khatiashvili and others helped run a series of labor staffing companies that facilitated the employment in hotels, bars and restaurants in Key West and elsewhere of non-resident aliens who were not authorized to work in the United States. These labor staffing companies did not withhold federal income taxes or Social Security and Medicare taxes from these workers’ wages and did not report the wages to the IRS.

U.S. District Court Judge Jose E. Martinez for the Southern District of Florida sentenced Strnad to 44 months in prison and Khatiashvili to 38 months in prison. In addition to their prison sentences, Judge Martinez ordered Strnad and Khatiashvili to both serve three years of supervised release and to pay $1,836,960.68 in restitution to the United States.

Khatiashvili and Strnad’s co-defendant, Petr Sutka, was sentenced to 48 months in prison on March 18.

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 Anthony Salisbury of Homeland Security Investigations (HSI) Miami and Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI) Miami Field Office made the announcement.

HSI and IRS-CI investigated the case.

Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft, Nicholas J. Schilling Jr., Matthew C. Hicks and Wilson Rae Stamm of the Justice Department’s Tax Division and Senior Litigation Counsel Christopher J. Clark of the U.S. Attorney’s Office for the Southern District of Florida prosecuted the case.

Luxury handbag company Gzuniga Ltd., its founder Nancy Teresa Gonzalez de Barberi and Gonzalez’s associate Mauricio Giraldo were sentenced to prison today for illegally importing merchandise from Colombia to the United States that was made from protected wildlife. All had previously pleaded guilty.

Gzuniga was ordered to forfeit all handbags and other previously seized product, banned for three years from any activities involving commercial trade in wildlife and sentenced to serve three years of probation. Gonzalez was sentenced to 18 months in prison with credit for time served, a supervised release of three years and to pay a special assessment. Giraldo was sentenced to time served, approximately 22 months based on incarceration in Colombia and the United States since his extradition, a year of supervised release and to pay a special assessment. Another co-conspirator, John Camilo Aguilar Jaramillo, pleaded guilty on April 8 and is scheduled to be sentenced on June 27. Gonzalez, Giraldo and Jaramillo are Colombian citizens and were extradited to the United States to face the charges brought against them.  

Photo is of handbags designed by Nancy Gonzalez and displayed in the Gzuniga Ltd. showroom. Photo is from Exhibit 3 to the government’s reply to objections to presentence report and sentencing memorandum in United States v. Gzuniga Ltd., et al., case number 22-CR-20170.

The caiman and python species are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), to which both the United States and Colombia are signatories.

“The United States signed on to CITES in an effort to help protect threatened and endangered species here and abroad from trafficking,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will not tolerate illegal smuggling. We appreciate the efforts of our many federal and international partners who have helped with the investigation, extradition and prosecution of this case.”

“The United States, in company with the international community, has established a system for overseeing the trafficking in protected species of wildlife. That system relies on a system of permits and oversight by many agencies and demands strict compliance by all those engaged in such trade,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “The press of business, production deadlines or other economic factors are not justification for anyone to knowingly flout the system and attempt to write their own exceptions to wildlife trafficking laws. In cooperation with our international partners, our Office will continue to require strict adherence to laws that protect our endangered species.”

“The U.S. Fish and Wildlife Service is deeply committed to combatting wildlife trafficking in all its forms. The Gonzalez case underscores the importance of robust collaboration with federal and international partners to disrupt illegal wildlife trade networks,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service’s (USFWS) Office of Law Enforcement. “This investigation uncovered a multi-year scheme that involved paid couriers smuggling undeclared handbags made of CITES-protected reptile skins into the U.S. to be sold for thousands of dollars. The Service will continue to seek justice for protected species exploited for profit, and we will hold accountable those who seek to circumvent international controls meant to regulate their sustainable trade.”

An indictment charged Gzuniga, Gonzalez, Giraldo and Jaramillo with one count of conspiracy and two counts of smuggling for illegally importing designer handbags made from caiman and python skin from February 2016 to April 2019.

The conspirators brought hundreds of designer purses, handbags and totes into the United States by enlisting friends, relatives and even employees of Gonzalez’s manufacturing company in Colombia to wear the designer handbags or put them in their luggage while traveling on passenger airlines. Once in the United States, the bags were delivered or shipped to the Gzuniga showroom New York to be displayed and sold.

The USFWS Office of Law Enforcement in Valley Stream, New York, investigated the case, with the assistance of the Miami Resident Agent in Charge Office of USFWS. The Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attaché Office in Bogotá, Colombia, provided valuable assistance with securing the arrest and extradition of Gonzalez, Giraldo and Jaramillo. The U.S. Marshals Service (USMS), Customs and Border Protection and Homeland Security Investigations were instrumental in supporting the case. The United States also thanks Colombian law enforcement authorities for their valuable assistance and close collaboration and partnership.

Senior Trial Attorney R.J. Powers of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Thomas Watts-Fitzgerald for the Southern District of Florida are prosecuting the case.

The Justice Department issued the following statement from Attorney General Merrick B. Garland on the Senate's vote on the reauthorization and reform of the Foreign Intelligence Surveillance Act Section 702:

“Section 702 of the Foreign Intelligence Surveillance Act is indispensable to the Justice Department’s work to protect the American people from terrorist, nation-state, cyber, and other threats.  

“This reauthorization of Section 702 gives the United States the authority to continue to collect foreign intelligence information about non-U.S. persons located outside the United States, while at the same time codifying important reforms the Justice Department has adopted to ensure the protection of Americans’ privacy and civil liberties.  

“In today’s heightened global threat environment, the Justice Department will continue to use Section 702 to ensure that our efforts to keep our country safe are informed by the most valuable and timely intelligence, as we continue to uphold our commitment to protect the rights of all Americans.”

This week, senior representatives and prosecutors from the United States, the European Union, international organizations, and civil society convened to exchange expertise on battlefield evidence in shared efforts to counter terrorism and transnational crime. On April 18 and 19, Chief of Counterterrorism Matthew F. Blue of the Justice Department’s National Security Division represented the Department at the European Union Agency for Criminal Justice Cooperation (Eurojust) meeting in The Hague.

Co-organized by the Eurojust Counter-Terrorism Working Group, the U.S. Department of Justice, and the EU Network for the investigation and prosecution of genocide, crimes against impunity and war crimes (Genocide Network), the meeting provided critical information to terrorism and international crime prosecutors, including on high-level investigations such as war crimes, crimes against humanity and genocide. Participants exchanged expertise on how evidence from past armed conflicts could be used in proceedings related to ongoing and future conflicts.

Counterterrorism Chief Blue delivered opening remarks to the delegation.

“Terrorists and war criminals should have no illusions that they are safe from prosecution when they plot and commit crimes in conflict zones,” said Chief Matthew F. Blue of the National Security Division’s Counterterrorism Section. “The United States is committed to ensuring that battlefield evidence is available for use in its domestic cases and those pursued by its European allies. Today’s meeting reaffirms the strong transatlantic commitment to ensuring that this vital tool is effectively harnessed.”

Participants further discussed how battlefield evidence can expose the operational workings and command structures of terrorist organizations, including the role of specific suspects and their associates, and how the information can be used to build cases that go beyond terrorism membership and financing to include other core international crimes.

In joining forces, Eurojust, the U.S. Department of Justice, and the Genocide Network have laid the foundation for enhancing the global response to crimes committed in conflict areas, both today and in the future.

The expert meeting at Eurojust represents another milestone in the longstanding cooperation between Eurojust and U.S. authorities to share challenges and best practice amongst practitioners – a key component of overcoming legal and practical hurdles in ongoing and future criminal cases.

For more information about the Department’s Counterterrorism Efforts, please visit www.justice.gov/nsd/counterterrorism-section. Additional information about Eurojust is available at www.eurojust.europa.eu.

The Justice Department’s Environment and Natural Resources Division (ENRD) released the Division’s Accomplishments for Fiscal Year (FY) 2023 in commemoration of Earth Day on April 22.

“The Environment and Natural Resources Division continues to serve a critical role in securing environmental justice and responding to the climate crisis, which are two of the Administration’s top priorities,” said Assistant Attorney General Todd Kim of ENRD. “We do this while carrying out a mission of remarkable breadth in enforcing federal laws enacted to protect public health, worker safety, natural resources, and animal welfare. Our work also promotes the sovereignty of federally recognized Indian Tribes, while protecting their rights, homelands and resources.”

The report highlights ENRD’s work in 2023 to defend pollution control measures, approvals for renewable energy projects and federal stewardship of public lands, wildlife and natural resources. The division’s Office of Environmental Justice provided environmental justice training, outreach resources and other support to the entire Justice Department while also organizing outreach and engaging with stakeholders. ENRD also continued its important work to partner with U.S. Attorneys’ Offices to prosecute criminal violations of environmental and animal welfare laws.

Some examples of ENRD’s work that are noted in the report include a Clean Air Act settlement featuring a $1.6 billion civil penalty with diesel engine maker Cummins Inc., a Clean Air Act settlement with BP Whiting securing important air toxic controls and a $40 million civil penalty (the largest-ever such penalty against a single facility), and the sentencing of a Florida couple for illegally importing plywood in violation of the Lacey Act and customs laws. ENRD attorneys also continued work to prosecute individuals for dogfighting, which this year led to multiple, multi-year sentences and the seizure of hundreds of dogs.

In FY 2023, ENRD attorneys worked on about 4,500 matters and obtained over $440 million in civil and criminal fines, penalties and costs recovered. The division also secured federal injunctive relief valued at $2.3 billion, saving the United States more than $2.5 billion through defensive and condemnation litigation.

The Justice Department announced today the development of a medical-legal partnership (MLP) project for incarcerated individuals to help reduce barriers to reentry and reduce recidivism. The Office for Access to Justice (ATJ) and the Federal Bureau of Prisons (FBOP) have worked collaboratively to develop this partnership as the next step of a broader civil legal services initiative launched last year. The partnership will connect medical and legal expertise to identify adults in custody (AIC) who require long-term access to post-release critical needs like housing, food security, and more. The project is part of the Department’s broader work to strengthen the safety of our communities while advancing thoughtful, evidence-informed initiatives, and reforms throughout the criminal justice system.

“We are pleased to announce the formation of this innovative medical-legal services partnership to promote successful reentry,” said Acting Associate Attorney General Benjamin C. Mizer. “Designed jointly by the Federal Bureau of Prisons and Office for Access to Justice, this partnership demonstrates how creativity and broad collaboration can work to reduce recidivism, promote success and second chances for returning individuals, and improve public safety. The Justice Department is committed to advancing public safety through more thoughtful approaches to the criminal justice system.”

The MLP project will take place at Federal Prison Camp (FPC) Bryan, located in Bryan, Texas. ATJ and FBOP are planning to collaborate on the pilot initiative with Texas A&M School of Law and the Texas A&M Institute for Healthcare Access. All institutions and organizations with relevant expertise are welcome to be considered for future collaboration.

MLPs connect the expertise of lawyers and legal help with the expertise of health care professionals to comprehensively address barriers that intersect across health care and legal needs. Specifically, this MLP will include a team of law and medical professionals who will collaborate to better determine eligibility for, and ensure access to, Social Security disability relief for those who qualify, with the goal of improving long-term access to post-release critical needs and promoting successful reentry. As part of the Department’s broader civil legal services initiative, FBOP and ATJ are also working to develop and distribute self-help materials to address civil legal needs of AIC and a series of empowerment workshops for AIC focused on civil legal issues including workshops focused on family law, financial-related issues, and access to public benefits.

“We are delighted to continue partnering with FBOP in developing a first-of-its-kind initiative to disrupt the recidivism cycle, improve justice outcomes, and better expand public safety,” said ATJ Director Rachel Rossi. “By bridging partnerships between medical and legal professionals, we can better meet the needs that are exacerbated for those leaving incarceration, ensuring access to food security, healthcare, housing, and more.”

“Incarcerated individuals are a particularly vulnerable population when it comes to unmet civil legal needs,” said FBOP Director Colette S. Peters. “While the Federal Bureau of Prisons offers critical services, including health care and education, we know the need for civil legal services remains high. Partnering with the Office for Access to Justice has been a fundamental step in breaking down barriers to provide important legal access to adults in custody. We are proud to be piloting this program at the Federal Prison Camp Bryan, Texas. The initial pilot, serving our women in custody, is significant as it will continue to support our gender-responsive, and trauma-informed focus, while addressing the additional barriers women also face.”

To highlight April as Second Chance Month, today ATJ and FBOP, with support from JustUs Coordination Council, hosted a Reentry Simulation, a two-hour situational interactive learning opportunity for organizations and federal employees from various agencies to experience the challenges and barriers faced by justice-impacted people in obtaining employment, government benefits, housing, transportation, and educational opportunities. Through discussions with system-impacted subject matter experts, this experience aimed to give insight and encourage continued collaboration across government to reduce these barriers. Justice Department leadership, Acting Associate Attorney General Benjamin C. Mizer, ATJ Director Rachel Rossi, and FBOP Director Colette S. Peters provided remarks during the simulation. Previously, ATJ hosted a Reentry Simulation for high-level Justice Department and other agency officials for Second Chance Month in April 2022.

A Florida man was sentenced today to one year and one day in prison for using his hedge fund management company as part of a years-long, multimillion-dollar Ponzi scheme.

According to court documents, Michael Wayne Williams, 48, of Miami, was the founder and operator and investment manager of Highguard Capital and its affiliated entities, Guardian Opportunity Fund and Guardian Opportunity Management. Williams convinced his victims to invest over $3.6 million in Guardian Opportunity Management and used their money for undisclosed and unauthorized purposes, including to settle civil lawsuits accusing him of fraud and to repay investors from discontinued funds that he previously managed.

Williams pleaded guilty in October 2023 to wire fraud.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.

The FBI Washington Field Office investigated the case.

Trial Attorney David A. Peters of the Criminal Division’s Fraud Section and Trial Attorney Elise Kent Bernanke of the Environment and Natural Resources Division prosecuted the case.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected].

A Utah man was sentenced yesterday to one year and one day in prison for evading taxes on $1.3 million he was paid as part of a secret arrangement with a purported donor to the charity where he worked.

According to court documents and statements made in court, Ashley Robinson, of Farmington, was the CEO of a Salt Lake City-based charity that collected and distributed medical supplies overseas. As CEO, Robinson entered into a secret arrangement with a purported donor, Gurcharan “Jazzy” Singh. Singh provided medical supplies to the charity, making it appear as if these supplies had been donated to the charity. Robinson then arranged for the charity to sell the goods to a third-party, passing most of the sale proceeds back to Singh. As compensation, Singh then paid Robinson up to 10% of the total proceeds.

From 2013 through 2019, Robinson personally received $1.3 million from this scheme. Robinson did not report this income on his federal tax returns or pay tax on it. Instead, he used the funds to pay off the mortgage on his principal residence and to buy multiple luxury vehicles, including a Maserati, a Mercedes Benz and an Audi for a co-worker.

Robinson caused a tax loss to the IRS of $485,982.

In addition to his prison sentence, U.S. District Judge Jill N. Parish for the District of Utah ordered Robinson to pay approximately $485,982 in restitution to the United States.

Singh was separately prosecuted in the Central District of California and sentenced to serve one year and one day in prison.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and United States Attorney Trina A. Higgins for the District of Utah made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorney Boris Bourget of the Justice Department’s Tax Division and Assistant U.S. Attorney Bryan N. Reeves for the District of Utah prosecuted the case.

The Justice Department issued the following statement from Attorney General Merrick B. Garland in recognition of the 29th anniversary of the Oklahoma City Bombing, which took place on April 19, 1995, in Oklahoma City, Oklahoma:

“Twenty-nine years after the bombing of the Alfred P. Murrah Federal Building, we continue to remember the 168 people, including 19 children, who were stolen from their loved ones, as well as the hundreds who were injured and forever changed. We continue to mourn alongside the families and the entire Oklahoma City community devastated by the attack.

“On this day, twenty-nine years ago, I watched in horror from my desk at the Justice Department as reports came in that there had been an explosion at the Murrah building in Oklahoma City.  My colleagues and I gathered in front of a TV in my office and saw our first glimpse of the aftermath of the horrific attack. Forty-eight hours later, I traveled to Oklahoma to represent the United States in the first court hearing of the perpetrator, Timothy McVeigh.

“I will never forget the devastation that was inflicted on the entire Oklahoma City community. I will also never forget the extraordinary grace and love the community demonstrated in the face of that horrific tragedy. The Justice Department will never forget those who were lost, and we remained committed to working to prevent and disrupt such horrific attacks before they can occur.

“That means continuing to counter the threat that both foreign and domestic terrorism pose to our country as we grapple with a heightened global threat environment.

“It means continuing to hold accountable those who target Americans who serve the public with threats and acts of violence. 

“And it means doing this work without ever losing sight of our responsibility to protect the civil rights of everyone in our country.

“As we mark 29 years since April 19, 1995, we renew our commitment to remembering what happened, to honoring those we lost, and to doing everything in our power to prevent future tragedies.”

The Justice Department’s Tax Division filed a civil injunction suit today to permanently bar Nia Daniel and her tax return preparation business, Nia Help Service LLC, from preparing federal income tax returns for others.

The complaint, filed in the U.S. District Court for the Southern District of Florida, alleges that Daniel prepared over 2,000 federal income tax returns from 2020 through 2024 and that she employed a variety of schemes to understate her customers’ tax liabilities and overstate the refunds to which they were entitled. The complaint alleges that Daniel made up false businesses on customers’ returns, knowingly reported fake or inflated business expenses and fraudulently claimed various credits like the Work Opportunity Tax Credit, American Opportunity Credit and Residential Energy Credit – usually without customers’ knowledge. The complaint goes on to explain that Daniels falsified customers’ income and filing statuses to increase the amount of the Earned Income Tax Credit.

According to the complaint, the United States has been harmed by Daniel’s conduct, resulting in the significant loss in tax revenue of more than $500,000 in 2023 alone. In addition to seeking an injunction, the government requests an order of disgorgement to prevent Daniel and her business from profiting from their violation of the internal revenue laws.

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

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant against dishonest tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS 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.

Daniel Complaint - ecf stamped.pdf

The Justice Department announced today the seizure of four domains used by the administrators and customers of a domain spoofing service. The domain seizures were authorized pursuant to seizure warrants issued in the Western District of Pennsylvania and were executed in coordination with the arrest of dozens of administrators and customers of the illicit service by foreign law enforcement agencies.

“Together with our international partners, the Justice Department has disrupted another cybercrime scheme originating from Russia that enabled criminals to steal from over a million victims in the United States and around the world,” said Attorney General Merrick B. Garland. “I am grateful to the U.S. Attorney’s Office for the Western District of Pennsylvania, the FBI, and our partners at the Secret Service for their work on this case, and to our foreign law enforcement partners whose efforts have led to the arrests of dozens of LabHost administrators and users.”

According to court records, the United States obtained authorization to seize the domains as part of an investigation of the spoofing service operated through the Lab-host.ru domain (LabHost), which resolves to a Russian internet infrastructure company. LabHost provided online infrastructure and interactive functionality for its subscription-based services. According to court records, customers of LabHost used its services to create and manage spoofed websites designed to look like the legitimate websites of businesses such as Amazon, Netflix, Wells Fargo, Bank of America, and Chase Bank. LabHost customers used the spoofed websites to lure unwitting victims into disclosing their personally identifiable information (PII) — e.g., date of birth, email address, password, address, and credit card information — on the websites the victims believed were legitimate. In turn, according to court documents, LabHost’s customers used the stolen PII to engage in unauthorized financial transactions at the expense of the victims. As outlined in court records, LabHost has been used to create over 40,000 spoofed websites, and its infrastructure has stored over one million user credentials and nearly 500,000 compromised credit cards.

The warrants authorized the seizure of the following four domains associated with application programming interface (API) services used to install spoofed websites and manage LabHost’s phishing and credential-theft operations: Instapi-1xoa93z90o348fz.co, Api2-4hdfix74ks.co, Api1-9kcpqcf7olw1w300w3m6.cc, and Api-d789342789342uy432hjf87df87dfk.cc. The four LabHost API domains were registered to NameSilo, LLC, a third-party webhosting service based in the United States. According to court records, the seized domains represented property used to commit violations of federal criminal law, including access device fraud, computer fraud, wire fraud, identity theft, and money laundering.

The effect of the domain seizures was to shut down the LabHost platform.

“The theft of personal information — and the financial ruin that often follows — should never be just another cost of using the internet for ordinary citizens,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “Today’s domain seizures show that cybercriminals’ greed will not go unchecked — no matter their sophistication and geographic reach. We will continue to work with our domestic and foreign law enforcement partners, using all available tools, to protect the global public.”

“Seizing LabHost and arresting those involved will have a systemic impact on transnational cybercrime,” said Special Agent in Charge Timothy P. Burke of the U.S. Secret Service (USSS) Pittsburgh Field Office. “We are proud to work with our foreign and domestic law enforcement partners as we continue to counter those engaged in cybercrime.”

“Behind every cybercrime-as-a-service operation lurks one thing: financial devastation,” said Special Agent in Charge Kevin Rojek of the FBI Pittsburgh Field Office. “The FBI and our global partners will continue to aggressively pursue anyone who thinks they can get rich by stealing from hard-working Americans. Selling cybercrime tools has ripple effects that go far beyond the businesses and borders of America. With every theft and intrusion, the public loses more and more trust in our critical digital infrastructure.”

The domain seizures in the United States occurred in conjunction with the international arrests of dozens of LabHost administrators and customers facing criminal charges in more than a dozen foreign countries. Law enforcement authorities from the following countries participated in the investigation: Australia, Austria, Belgium, Canada, Czechia, Estonia, Finland, Ireland, Malta, the Netherlands, New Zealand, Poland, Portugal, Romania, Spain, Sweden, and the United Kingdom.

Assistant U.S. Attorney Mark V. Gurzo for the Western District of Pennsylvania is prosecuting the case.

The FBI and USSS investigated the case in the United States, and the United Kingdom’s London Metropolitan Police investigated the international case, with the support of Europol’s European Cybercrime Centre and Joint Cybercrime Action Taskforce.

The Justice Department announced today that it has updated www.justice.gov/voting, a one-stop resource providing voting and elections information for voters as well as state and local elections officials. As part of the update, the Civil Rights Division published two new informational guides on voting rights and updated five other guides. The Department’s longstanding practice is to update resources and provide information in election years on the efforts of the Civil Rights Division, Criminal Division, National Security Division, and U.S. Attorneys’ Offices throughout the country, to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation, or criminal activity in the election process, and to ensure that our elections are secure and free from foreign malign influence and interference. Over the coming months additional resources will be published.

“The right to vote is the cornerstone of our democracy, the right from which all others flow,” said Attorney General Merrick Garland. “The Justice Department is using every available authority to defend that right, both from efforts to undermine voting rights and from efforts to threaten and intimidate those who administer our elections. These updated resources will help voters understand their rights and assist public officials in fulfilling their duties.”

“Protecting the right to vote is one of the Justice Department’s highest priorities,” said Acting Associate Attorney General Benjamin C. Mizer. “Today, the Department is issuing new guidance documents, updating others, and updating our main voting website to make available in one place the resources the Department offers on voting rights — from a guide on the laws governing voting-related language assistance to a video explaining the protections against voter intimidation. We hope that these resources will make it easier for voters to exercise their rights and to enlist our help whenever and wherever those rights are under attack.”

“The Justice Department works every day to defend the right of every eligible American to exercise their voice in our democracy,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The new guides and updates we issue today, alongside our litigation, friend-of-the-court-briefs, and monitoring efforts demonstrate our commitment to using every tool available to protect the right to vote. These materials apprise voters about the protections provided by the Voting Rights Act and other civil rights laws and encourage voters to report violations. These resources also help state and local authorities comply with their obligations under the law.” 

The new guides issued today include one on Voter Intimidation Under Federal Law, discussing the prohibition on threats, obstruction, or deliberately false information about the time, manner, or place of voting to prevent people from casting their ballots or participating in the electoral process. The Department has prepared a short video explaining how to report such misconduct.

The second new guide addresses Voting Protections for Language Minority Citizens under Section 203 of the Voting Rights Act. Section 203 mandates language assistance to enable certain people with limited English proficiency to participate effectively in all phases of the electoral process. 

Along with the two new guides, the Department updated five existing guides on the Justice Department website. The Department updated its guide on The Americans with Disabilities Act and Other Federal Laws Protecting the Rights of Voters with Disabilities. This guide describes the legal protections designed to allow equal access to every aspect of elections, including registration and voting, for people with disabilities. The Department also revised its Guidance Under Section 2 of the Voting Rights Act for redistricting and methods of electing government bodies. Another update addressed Federal Law Constraints on Post-Election “Audits.” In addition, the Department updated its Guidance Concerning Federal Statutes Affecting Methods of Voting. Along with these revisions, the Department updated information on how to request Federal Election Monitors in a jurisdiction.

These guides on voting laws are just a few of the many resources the Department has made available on its website to help people exercise this foundational right and to assist public officials in fulfilling their duties. Other such resources include a brochure entitled Know Your Voting Rights, a 50-state Guide to State Voting Rules that Apply After a Criminal Conviction, explanations of the rights of voters with disabilities, including guides on Ballot Drop Box Accessibility, Solutions for Five Common ADA Access Problems at Polling Places, and How to File an ADA Complaint, and web pages addressing the voting rights of members of the armed services and U.S. citizens living overseas, the National Voter Registration Act, and the Help America Vote Act.

The www.justice.gov/voting website also provides information on the Department’s Election Threats Task Force, which leads the Department’s efforts to address violence against election workers and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. 

You can report suspected criminal activity regarding voting to the FBI at 1-800-CALL-FBI (1-800-225-5324) or by filing an online complaint at tips.fbi.gov. You can also contact local law enforcement. You can report possible civil rights violations at www.civilrights.justice.gov/report/ or 1-800-253-3931.  

If at any time you are in imminent danger, call 911. 

The Justice Department, Federal Trade Commission (FTC) and the Department of Health and Human Services (HHS) today launched an easily accessible online portal for the public to report health care practices that may harm competition.

The online portal, HealthyCompetition.gov, allows the public to report potentially unfair and anticompetitive health care practices to the Justice Department’s Antitrust Division and FTC. The launch of the new portal advances the Biden-Harris Administration’s efforts to lower health care and prescription drug costs and help create more competitive health care markets that are fairer to patients, providers, payers and workers.

“Competition in health care is crucial to ensuring fair and competitive wages across the healthcare sector and affordable and quality healthcare for all Americans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Today’s launch of HealthyCompetition.gov – a one-stop shop to report potential violations of our competition laws to the Justice Department and FTC – will allow the agencies to collaborate early and often, helping to promote economic opportunity and fairness for all.”

“All too often, we hear how unfair methods of competition and monopolistic practices may be depriving Americans of access to affordable, high-quality healthcare,” said FTC Chair Lina M. Khan. “This joint initiative between FTC, DOJ and HHS will provide a crucial channel for the agencies to hear from the public, bolstering our work to check illegal business practices that harm consumers and workers alike.”

“Americans depend on competitive health care markets to provide quality choices and lower costs for coverage. That’s why we are working to tackle anticompetitive practices in the health care markets,” said HHS Secretary Xavier Becerra. “The Biden-Harris Administration and HHS know it is our responsibility to stop monopolistic, anti-competitive practices that undermine the delivery of health care to Americans. The information provided by the public will help to root out these behaviors.”

Complaints will undergo preliminary review by staff at the Justice Department’s Antitrust Division and FTC. If a complaint raises sufficient concern under the antitrust laws or is related to HHS authorities, it will be selected for further investigation by the appropriate agency. This action may lead to the opening of a formal investigation.

The privacy and confidentiality policies that govern information submitted through the portal, including any personal information members of the public choose to provide, can be found at DOJ Privacy Policy, DOJ Antitrust Division Confidentiality Policy Regarding Complainants and FTC Privacy Policy

HealthyCompetition.gov is the latest effort by the Justice Department, FTC and HHS to promote competition in health care markets to ensure that every American has access to high-quality, affordable care. As announced in December 2023, the Justice Department, FTC and HHS have continued to partner on new initiatives, which included a joint request for information to seek input on how private-equity and other corporations’ control of health care is impacting Americans.

An Illinois man made his initial appearance today on an indictment returned by a federal grand jury in Chicago charging him with 21 counts of preparing false tax returns for others.

According to the indictment, Byron Taylor, of Homewood, allegedly operated We Are Taxes Inc., a return preparation business. For tax years 2017 through 2020, Taylor allegedly prepared returns for clients that contained false information resulting in the clients claiming refunds to which they were not entitled. The false information allegedly included, among other things, fraudulent business losses and false deductions – including medical and dental expenses, gifts to charity and state and local real estate taxes – and unreimbursed employee expenses.

If convicted, Taylor faces a maximum penalty of three years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

IRS Criminal Investigation is investigating the case.

Assistant Chief Matthew J. Kluge and Trial Attorney Boris Bourget of the Tax Division 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.

A New York man was resentenced today to nine years in prison and ordered to pay $39 million in restitution for his role in a multimillion-dollar health care kickback and tax avoidance conspiracy, after his previous sentence was vacated. 

According to court documents, Aleksandr Pikus, 48, of Brooklyn, orchestrated a scheme to refer Medicare and Medicaid beneficiaries to health care providers at clinics in Brooklyn and Queens in exchange for illegal kickbacks. The health care providers submitted millions of dollars in false and fraudulent claims to the Medicare and Medicaid programs related to these illegally procured beneficiaries. Pikus and his co-conspirators then laundered a substantial portion of the proceeds of these claims through companies they controlled, including by cashing checks at several check-cashing businesses in New York. Pikus failed to report that cash income to the IRS, instead using sham shell companies and fake invoices to conceal the transactions. He used the cash for his personal benefit and to pay kickbacks to patient recruiters who, in turn, paid beneficiaries to receive treatment at the medical clinics. 

Pikus was convicted at trial in 2019, but his conviction was overturned on appeal. On remand, the district court dismissed the indictment without prejudice. Pikus was reindicted in January 2023 and pleaded guilty to conspiracy to receive and pay health care kickbacks and conspiracy to defraud the United States by obstructing the lawful functions of the IRS in May 2023.   

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Thomas M. Fattorusso of IRS Criminal Investigation (IRS-CI) New York; and Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

IRS-CI and HHS-OIG investigated the case. 

Trial Attorney Patrick J. Campbell 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.

Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Jason Solatario Brown, age 48, from Yigo, Guam was sentenced to 120 months imprisonment for Possession of Child Pornography, in violation of 18 U.S.C. § 2252.  The Court also ordered five years of supervised release following imprisonment and a mandatory $100.00 special assessment fee.  The Court also ordered Brown to register with the Sex Offender Registry anywhere he lives, works, or goes to school.

On November 24, 2020, a Federal Bureau of Investigation special agent searched Brown’s cellular telephone.  During the examination the agent discovered 28 videos and images of child sexual abuse material (CSAM).  The images depicted adult males engaging in sexually explicit conduct with young boys.  Evidence revealed that Brown shared the videos and images with another person using the Facebook messenger app.  Brown shared the images after receiving a request for images of children below the age of fifteen.

“Our children are facing unprecedented threats to their safety,” stated United States Attorney Anderson.  “Digital technology facilitates nearly every crime.  We must make every effort to combat the exploitation of children.  Those who violate their innocence will be held accountable.”

“This sentence demonstrates that the FBI will vigorously pursue those who target young innocent children and bring justice to those who have been victimized,” said FBI Special Agent in Charge Steven Merrill.  “We ask the public to be vigilant and report these heinous acts to the FBI at 1-800-CALL-FBI or at tips.fbi.gov so we can put these perpetrators away for a long time

This investigation was conducted by the Federal Bureau of Investigation.  This prosecution is part of the Project Safe Childhood initiative, whose mission is to combat internet or technology-facilitated sexual exploitation crimes against children.  PSC works in coordination with U.S. Attorney’s Offices, the Federal Bureau of Investigation, and the National Center for Missing and Exploited Children.  The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.

Alongside state and local law enforcement partners in Chicago, Deputy Attorney General Lisa O. Monaco and Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced today the opening of a new Crime Gun Intelligence Center (CGIC) in Chicago.

“Chicago's expanded crime gun intelligence center uses cutting-edge technology to trace crime guns, link ballistics evidence to connect shootings, and identify gun traffickers and straw purchasers who arm violent criminals,” said Deputy Attorney General Monaco. “By combining talent, technology, and data from 13 agencies in a single hub, law enforcement in Chicago will generate more leads to take repeat shooters off the streets, so we can push case-closure rates up and drive violent crime rates down. To continue our historic progress against violent crime, we need to bring more crime gun intelligence to more law enforcement agencies, in more jurisdictions, more quickly than ever before.”

“We are putting agents, cops, detectives, deputies, and prosecutors, all from different agencies across law enforcement, in one room working together. Each morning, they are reviewing key evidence from the previous night’s shootings, using real-time, state of the art intelligence. It is a true game changer. CGICs make homicide cases. CGICs stop the next shooting. And CGICs help identify illegal sources and stop the guns that are getting to the shooters,” said ATF Director Steve Dettelbach. “I want to commend the ATF Chicago leadership and the dozen law enforcement agencies that have committed to working together under one roof with a focus on real-time ballistics testing and firearms tracing. Without all of them, this CGIC does not happen. This level of partnership is truly exceptional. Chalk one up for the good guys.”

CGICs are centralized law enforcement hubs that focus exclusively on investigating and preventing gun violence in local communities. They use cutting-edge technologies, including ATF’s National Integrated Ballistic Information Network (NIBIN) and eTrace systems, to rapidly develop and pursue investigative leads in order to drive case clearance rates up — which in turn can help drive violent crime rates down. They bring together, under one roof, the expertise of firearm evidence examiners, intelligence analysts, and investigators to rapidly collect, analyze, and share information about guns used in violent crimes. In total, ATF operates more than 60 CGICs nationwide.

“The CGIC in Chicago will allow us to identify specific incidents and trends in firearm offenses, enabling us to move quickly in investigating and prosecuting violent crimes in the most appropriate venue,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “The CGIC is a significant investment from the Justice Department to accelerate our efforts to reduce violent crime in the Northern District of Illinois.”

“This unprecedented partnership in Chicago among local, state, and federal law enforcement will ensure the prompt and comprehensive delivery of intelligence related to firearms used in crimes,” said Special Agent in Charge Christopher Amon of the ATF Chicago Field Division. “The timely tracing of recovered firearms and NIBIN analysis of cartridge cases will produce comprehensive intelligence vital to solving gun crime in our communities.”

“This CGIC brings together different areas of the government that are all committed to saving lives and preventing the gun violence plaguing our communities,” said Superintendent Larry Snelling of the Chicago Police Department. “Partnership and collaboration are vital to strengthening public safety across Chicago. The CGIC is that partnership in action.”

Thirteen agencies across federal, state, and local law enforcement are co-located within the new CGIC, focusing on real-time comprehensive ballistics testing and firearms tracing, two of ATF’s fundamental pillars of Crime Gun Intelligence. Also co-located at the CGIC are federal and state prosecutors to ensure the charging process is timely and effective. The Chicago CGIC partners include ATF, the U.S. Attorney’s Office for the Northern District of Illinois, Chicago Police Department, Cook County Sheriffs Police, Homeland Security Investigations, Drug Enforcement Administration, FBI, U.S. Secret Service, Illinois State Police, Chicago High Intensity Drug Trafficking Area, Cook County State’s Attorney’s Office, Illinois Attorney General’s Office, Illinois Department of Corrections, and Justice Department’s Bureau of Justice Assistance.

An Alabama man was sentenced yesterday to 30 months in prison for conspiring to prepare and file false tax returns for clients in Jackson, Mississippi, and for preparing false returns.

According to court documents and evidence presented in court, Jonathan Barefoot worked at Sunbelt Tax Service in Jackson. He conspired with others to claim inflated tax refunds for clients by reporting false education credits, itemized deductions and business profits or losses on their clients’ tax returns. Over the years, Barefoot and his co-conspirators prepared thousands of fraudulent returns, causing over $3.5 million in tax loss to the IRS.

In addition to his prison sentence, U.S. District Court Judge Daniel P. Jordan III for the Southern District of Mississippi ordered Barefoot to serve one year of supervised release.

Four of Barefoot’s co-conspirators have previously received the following sentences:

• Adam Earnest: 100 months in prison;
• Christopher Randell: 70 months in prison;
• James Klish: 50 months in prison; and
• John Wells: 15 months in prison. 

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

IRS Criminal Investigation investigated the case.

Trial Attorneys Patrick Elwell, Zachary Cobb and Mary Frances Richardson of the Justice Department’s Tax Division and Assistant U.S. Attorney Bert Carraway for the Southern District of Mississippi prosecuted the case.

An Indiana woman was sentenced today to 21 months in prison for conspiring to file false tax returns, wire fraud and tax evasion.

According to court documents and statements made in court, Awett Tedla, now of Indianapolis, was the owner and operator of Speedy Tax Services LLC in Washington, D.C., and District Heights, Maryland. From 2012 through 2016, Tedla and her co-conspirators prepared and electronically filed false income tax returns for clients that reported fictitious businesses and claimed certain tax credits, including the Earned Income Tax Credit, to generate inflated tax refunds. Tedla and her co-conspirators charged their clients different fees that depended on the size of the fraudulent refund.

In 2016, Tedla also filed a false tax return for herself that underreported gross receipts from her business and taxable income.

From 2012 through 2016, Tedla caused a tax loss to the IRS of approximately $171,534.

In addition to her prison sentence, U.S. District Judge Carl J. Nichols for the District of Columbia ordered Tedla to serve three years of supervised release and to pay $171,534 in restitution to the United States.

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

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

Trial Attorneys Mark McDonald and George Meggali of the Tax Division prosecuted the case.

A financial planner from Cleveland was sentenced to 20 months in prison for conspiring to defraud the United States by promoting an illegal tax shelter scheme involving false charitable deductions.

According to court documents and statements made in court, Rao Garuda was the president and chief executive officer of Associated Concepts Agency Inc. He promoted a fraudulent tax shelter known as the “Ultimate Tax Plan” or the “Advanced Legacy Plan” that was organized, marketed and sold by his co-conspirator, Michael Meyer.

They marketed the scheme as a way for high-income clients to reduce their taxes by claiming deductions for charitable donations that the organizers knew were fraudulent. In particular, Garuda and others promoted the scheme as a way for clients to receive the deduction without relinquishing ownership or control over the assets the clients purported to have donated. Garuda continued to sell the scheme despite being warned by several attorneys that the scheme was illegal.

Garuda also assisted clients in backdating documents so that clients could claim purported donations on their prior years’ tax returns.

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 Garuda’s clients. In response, Garuda created false, backdated documents and directed clients to submit them to the Justice Department. In April 2019, a federal district court permanently enjoined Meyer from organizing, promoting, marketing or selling the Ultimate Tax Plan. 

In addition to his prison sentence, U.S. District Judge Bridget Meehan Brennan for the Northern District of Ohio ordered Garuda to serve three years of supervised release and to pay $1,506,399 in restitution.

Cullen Fischel, Associated Concepts’ chief operating officer, was sentenced to four months in prison, three years of supervised release and was ordered to pay $268,605 in restitution for his role in the scheme.

On April 10, Meyer was sentenced to eight years in prison for his role in the scheme.

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 is investigating the case.

Assistant Chief Michael Boteler of the Tax Division and Assistant U.S. Attorney Elliott Morrison for the Northern District of Ohio are prosecuting the case.

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.

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.

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 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.

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.

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.

 

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.

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.

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.