District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Intercontinental Terminals Company to Pay over $6.6 Million for Injuries to Natural Resources Resulting from a Fire at Its Facility Near HoustonRead the Press Release
The Justice Department announced today that Intercontinental Terminals Company LLC (ITC) has agreed to pay over $6.6 million to federal and state natural resource trustees to resolve claims for natural resource damages resulting from a 2019 fire at ITC’s Deer Park terminal facility near Houston that released hazardous chemicals.
A complaint filed concurrently with the proposed consent decree seeks money damages and costs under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). The fire resulted in the release of hundreds of thousands of barrels-worth of petrochemical products and firefighting water and foam into Tucker Bayou and surrounding waterways, including the Houston Ship Channel.
Designated federal and state trustees determined that the hazardous substances released from ITC’s facility caused significant injuries to ecological resources and services, including birds and marsh and riparian habitat areas. In addition, the hazardous chemicals released into air and water resulted in lost recreational opportunities in the Deer Park area, including temporary closures of multiple state, county and city parks and the Lynchburg Ferry, as well as the cancelation of an annual historical reenactment at San Jacinto State Park.
The settlement will be used to compensate the public for natural resource injuries, reimburse trustee agencies for the costs of assessment and fund the restoration planning and oversight process that will guide how restoration will be conducted. After a process that will include an opportunity for public comment, the trustees will use the cash payment to implement natural resource restoration projects to address ecological injuries and enhance recreational use to address lost human use of the injured resources. ITC previously paid about $1 million to reimburse federal and state trustees for their prior assessment costs.
“The 2019 fire at ITC’s Deer Park facility released a significant amount of hazardous substances that injured the Houston Ship Channel,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Today’s settlement will enable restoration work to improve the environment in the channel and other affected waterways in the area and to enhance recreational opportunities for Texas residents and visitors.”
“This settlement will help repair, in part, the devastating environmental damage caused by the release of hazardous substances from ITC’s Deer Park facility,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “I am committed to the restoration of clean waterways and a diverse ecosystem to benefit the residents of Deer Park.”
“NOAA is pleased to have worked cooperatively with industry and our co-trustees to reach an agreement to restore coastal waterways and communities impacted by this catastrophic event,” said Assistant Administrator Nicole LeBoeuf of the National Oceanic and Atmospheric Administration’s (NOAA) National Ocean Service. “Clean and resilient waterways are vital to coastal communities and this restoration will especially benefit those who have been disproportionately impacted by pollution.”
“I’m pleased we were able to secure this natural resource damages settlement after the serious destruction caused by the fire at Deer Park,” said Texas Attorney General Ken Paxton. “This fire burned for three days, spewing hazardous chemicals into our air, water, and land. Texas’s environmental enforcement suit against ITC is still pending. All companies operating in our state must take the utmost precaution to prevent any such disaster from harming our citizens and our environment.”
The designated federal trustees are NOAA and the Department of the Interior through the Fish and Wildlife Service. The state trustees are the Texas Commission on Environmental Quality, the Texas Parks and Wildlife Department and Texas General Land Office.
The federal and state trustees worked with ITC to perform the injury assessment. The Trustees will continue working together to develop and adopt a restoration plan that will be published for public comment.
In an earlier related CERCLA enforcement action, the Environmental Protection Agency (EPA) through the Justice Department secured an administrative settlement with ITC for $5.25 million to reimburse the United States for costs in responding to the releases from the fire at ITC’s facility.
For more information about the ITC tank fire, see darrp.noaa.gov/oil-spills/itc-tank-fire.
Attorneys from the Justice Department’s Environmental Enforcement Section and the Texas Office of the Attorney General are handling the case on behalf of the federal and state trustees.
The proposed consent decree was lodged in the U.S. District Court for the Southern District of Texas and is subject to a 30-day public comment period and final court approval. The consent decree and information on how to submit a public comment is available on the Justice Department’s website: www.justice.gov/enrd/consent-decrees.
Former Fugitive Sentenced for Laundering $1.5M Embezzled from Kuwaiti EmbassyRead the Press Release
A Virginia man was sentenced today to three years in prison for laundering money he and others embezzled from the Health Office of the Embassy of Kuwait in Washington, D.C.
According to court documents, from approximately January 2014 through September 2014, Ahmed El Khebki, also known as Ahmed Khider El Khebki, of Alexandria, and his co-conspirators stole money from the Kuwait Embassy’s Health Office that had been earmarked to pay for medical care for Kuwaiti citizens who traveled to the United States to receive treatment at, among other places, Johns Hopkins Hospital and MedStar Georgetown University Hospital. To embezzle and launder the funds, El Khebki and his co-conspirators created fictitious entities with names such as “Hopiken” and “MedStars,” which were meant to mimic the names of actual U.S. healthcare providers that partnered with the Kuwait Embassy to provide care to Kuwaiti patients. The co-conspirators submitted fraudulent invoices in those entities’ names to the Health Office, claiming that they had provided medical services to real Kuwaiti citizens. The financial attaché for the Health Office, who participated in the conspiracy, and other co-conspirators who worked at the Health Office approved the invoices and wrote checks to El Khebki and his co-conspirators’ fake companies.
The Health Office transferred to El Khebki and his co-conspirators more than $1.5 million in payments for fraudulent invoices. El Khebki personally deposited hundreds of thousands of dollars of stolen funds into accounts he controlled.
In 2014, El Khebki fled the United States to avoid arrest for his involvement in the conspiracy and remained a fugitive until he was arrested in Cairo, Egypt, and returned to the United States in 2021. El Khebki pleaded guilty in May 2023 to participating in a conspiracy to launder more than $1.5 million from the Embassy of Kuwait.
Two of El Khebki’s co-conspirators, Wael Sedik and Huwida Fadl, were previously sentenced for their roles in the conspiracy. Hussein Fadl Osman, El Khebki’s co-defendant and Fadl’s brother, remains at large. At the request of the Kuwaiti government, the United States dismissed criminal charges against the Health Office’s financial attaché and returned her to Kuwait to face prosecution.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division and Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington, D.C. made the announcement.
HSI investigated the case.
Senior Trial Attorney Jonathan Baum and Trial Attorney Shai D. Bronshtein of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) prosecuted the case.
This case is part of the department’s Kleptocracy Asset Recovery Initiative. The Kleptocracy Asset Recovery Initiative is led by a team of dedicated MLARS prosecutors in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to seize, forfeit, and repatriate those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should email [email protected] or submit information at https://tips.fbi.gov/.
El Departamento de Justicia llega a un acuerdo con una empresa de servicios de seguridad para resolver acusaciones de discriminación relacionadas con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Securitas Security Services USA Inc. (Securitas), una empresa de servicios de seguridad con oficinas por todo Estados Unidos. El acuerdo resuelve la determinación del Departamento de que ciertas ubicaciones de Securitas vulneraron la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) cuando discriminó a no ciudadanos de los EE. UU. al verificar su permiso para trabajar en los Estados Unidos.
«Los empleadores no pueden restringir los tipos de documentos que los trabajadores pueden usar para demostrar su permiso para trabajar», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento seguirá garantizando que todos los trabajadores, independientemente de su ciudadanía, estatus migratorio o nacionalidad de origen, puedan presentar los documentos válidos que ellos mismos eligen para demostrar su permiso para trabajar».
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), de la División de Derechos Civiles, determinó que, desde al menos el 3 de febrero del 2020 hasta el 20 de diciembre del 2021, las ubicaciones de Securitas en el área de East Bay, ubicadas en las ciudades de Concord y Fremont, California, solían exigir a los residentes permanentes legales que presentasen un documento migratorio específico a la hora de verificar su permiso para trabajar. Además, el Departamento determinó que, entre el 3 de febrero del 2020 y el 23 de junio del 2022, la empresa realizó solicitudes documentales similares a otros no ciudadanos de los EE. UU. con permiso para trabajar
Conforme los términos del acuerdo, Securitas pagará $100,000 en sanciones civiles a los Estados Unidos y establecerá un fondo de pagos retroactivos de $75,000 para compensar a las víctimas de las prácticas discriminatorias de la empresa, incluidas aquellas que fueron despedidas o perdieron su trabajo porque no pudieron cumplir con las obligaciones de la empresa. Asimismo, Securitas capacitará a su personal en cuanto a los requisitos antidiscriminatorios de la INA, revisará sus políticas de empleo y se someterá a supervisión por parte del Departamento.
La ley federal permite a todos los trabajadores elegir la documentación válida y legalmente aceptable que desean presentar para demostrar su identidad y permiso para trabajar, independientemente de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen. La disposición antidiscriminatoria de la INA prohíbe a los empleadores solicitar documentos específicos o innecesarios con base en el estatus de ciudadanía, estatus migratorio o nacionalidad de origen de un trabajador. De hecho, muchos no ciudadanos de los EE. UU., incluidos los residentes permanentes legales, son elegibles para varios de los mismos tipos de documentos para demostrar su permiso para trabajar que los ciudadanos estadounidenses (por ejemplo, una identificación estatal o licencia de conducir y una tarjeta de Seguro Social sin restricciones). Los empleadores deben permitir que los trabajadores presenten cualquier documentación aceptable que elijan y no pueden rechazar documentación válida que razonablemente parezca genuina.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, por lo general, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminación en la contratación y el reclutamiento en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify), o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito o visualizar una presentación a la carta; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico de la IER.
Two Warner Bros. Discovery Directors Resign after Justice Department Expresses Antitrust ConcernsRead the Press Release
The Justice Department announced today that two directors of Warner Bros. Discovery Inc. (WBD) have resigned from the WBD board after the Antitrust Division expressed concerns that their positions on both the WBD and Charter Communications Inc. boards violated Section 8 of the Clayton Act (Section 8). Section 8, which Congress made a per se violation of the antitrust laws, prohibits the same person or company from serving simultaneously on the boards of competitors, subject to limited exceptions. The division’s enforcement efforts to date have unwound or prevented interlocks involving at least two dozen companies.
Charter, through its Spectrum cable service, and WBD, including through its Max streaming subscription services, both provide video distribution services to customers. Representatives of the privately-held media company Advance Publications Inc. (Advance) had designees on both Charter’s and WBD’s boards of directors.
“Today’s announcement is a win for consumers,” said Deputy Assistant Attorney General Michael Kades of the Justice Department’s Antitrust Division. “In enacting Section 8 of the Clayton Act, Congress was concerned that competitors who shared directors would compete less vigorously to provide better services and lower prices. We will continue to vigorously enforce the antitrust laws when necessary to address overreach by corporations and their designated agents.”
WBD is a Delaware multimedia corporation headquartered in New York. Among other things, it produces, licenses and distributes films and television programs, operates domestic and international television networks and provides premium pay television and streaming services.
Charter is a Delaware telecommunications and media company headquartered in Stamford, Connecticut. It provides cable television, internet and telephone services through its Spectrum brand and operates numerous news and sports networks.
Anyone with information about potential interlocking directorates or any other potential violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1- 888-647-3258 or [email protected].
Louisiana Department of Education to Pay $1.26 Million to Resolve Civil Liability in Connection with Hurricane Disaster Assistance PaymentsRead the Press Release
The Louisiana Department of Education (LDE) has agreed to pay the United States $1,262,614.01 to resolve allegations that it received excess payments from the Federal Emergency Management Agency (FEMA) for the replacement of an educational facility in Louisiana that was damaged by Hurricane Katrina.
The settlement resolves allegations that, from August 2005 to December 2016, LDE received certain payments from FEMA for the replacement of a school facility damaged by Hurricane Katrina based on erroneous information. Under FEMA’s Public Assistance Program, eligible applicants are entitled either to receive repair costs or, if repair costs exceed 50% of replacement costs, receive replacement costs for a facility damaged by a disaster. According to the allegations in the government’s complaint, LDE received FEMA Public Assistance Program funds to replace the Florence J. Chester Elementary School Cafeteria Building (Chester Cafeteria Building) based on erroneous information prepared, reviewed and submitted to FEMA by a government contractor. Relying on the erroneous application for funds, FEMA obligated funding to replace the Chester Cafeteria Building even though LDE was entitled only to repair funds under the applicable FEMA rules.
“FEMA provides critical financial support to help communities recover from disasters,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates the department’s commitment to protecting the integrity of such funds and ensuring that they are disbursed in accordance with program requirements.”
“DHS-OIG along with our law enforcement partners will continue to investigate and help recover overpayments from FEMA’s disaster relief fund,” said Inspector General Joseph V. Cuffari of the Department of Homeland Security (DHS). “Today’s agreement reflects our collective commitment to protecting taxpayer dollars.”
The United States has now recovered more than $26 million in connection with the disaster assistance applications for educational facilities submitted to FEMA following Hurricane Katrina. The United States previously settled with AECOM Inc., Xavier University of Louisiana and the Roman Catholic Archdiocese of New Orleans with respect to their alleged role in the submission of false certifications for FEMA funding prepared by AECOM. The settlement with LDE resolves allegations made by the government in a lawsuit that was originally filed against AECOM and other parties, captioned United States ex rel. Robert Romero v. AECOM Inc., et al., No. 16-cv-15092 (EDLA.), to which the United States added LDE as a defendant in 2020.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana, with assistance from FEMA’s Office of Chief Counsel. Investigative support was provided by DHS-OIG, through its Major Fraud and Corruption Unit and New Orleans Resident Office.
Trial Attorneys Laura Hill, Richard Hagner, Gavin Thole and Robin Overby of the Civil Division’s Commercial Litigation Branch, Fraud Section, along with Assistant U.S. Attorney Mimi Nguyen for the Eastern District of Louisiana and Charles Schexnaildre of FEMA’s Office of Chief Counsel handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementForty-One Individuals Charged in Massive Poly-Drug Indictment Linked to CartelRead the Press Release
A total of 23 people were taken into custody following the return of a 50-count indictment alleging cocaine, fentanyl, heroin, and meth trafficking and related crimes in the Houston and Galveston areas.
The indictment alleges they all operated under the overall control of the Jalisco New Generation Cartel (CJNG).
From Dec. 28, 2018, to April 22, 2020, the conspirators allegedly operated and distributed drugs smuggled into the United States from Mexico. The leader of one of these groups, Roque Zamudio-Mendoza, 52, of Mexico, was the main source of drugs smuggled into the United States, according to the charges. Other co-conspirators allegedly distributed the narcotics in the Houston and Galveston, Texas, areas to other locations throughout the United States, including New Orleans; Pensacola, Florida; Atlanta; Nashville, Tennessee; and Chicago.
“Countless American lives have been lost because of the Jalisco and Sinaloa Cartels,” said Attorney General Merrick B. Garland. “Over the past three years, the Justice Department has zeroed in on these cartels, and with these arrests of dozens of Jalisco Cartel associates, we are taking yet another step in our fight to dismantle these deadly organizations.”
“The fentanyl threat to America constitutes a public health, public safety, and national security threat, and it’s primarily fueled by Mexican drug trafficking organizations, including the prominent and deadly Jalisco cartel,” said Deputy Attorney General Lisa Monaco. “The charges and arrests announced today target every element of the Jalisco cartel’s trafficking network, reflecting the Justice Department’s urgent and relentless battle, along with our Mexican partners, to dismantle all aspects of the illicit fentanyl supply chain.”
“DEA’s number one operational priority is to save lives by defeating the Mexican drug cartels responsible for the deadliest drug threat our country has ever faced. The Jalisco Cartel’s drugs and violence threaten the health and safety of Americans everywhere,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “The DEA will continue to target and defeat the cartels’ U.S. distributors, like the Zamudio-Mendoza organization, which fuel drug poisonings and violent crimes across our communities. This DEA-led investigation has saved lives in Texas, and across the country, by disrupting their operations and seizing their deadly drugs, cash and assets.”
“I want to commend our U.S. Marshal Service personnel and partners for their roles in this vital operation to dismantle a network that supplied dangerous drugs to communities in south Texas on behalf of the Jalisco New Generation Cartel,” said U.S. Marshals Service (USMS) Director Ronald L. Davis. “This is just one example of the significant work we can accomplish together to confront one of the most dangerous criminal organizations in Mexico.”
“CJNG is known as one of the most powerful and dangerous criminal organizations in Mexico, characterized by a business model that involves extreme violence and trafficking in the most deadly of substances — cocaine, heroin, meth, and fentanyl,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “This massive indictment demonstrates our tireless efforts to protect our communities against this cartel’s ruthless pursuit of profit which has come at the cost of countless young lives.”
During the law enforcement operation that spanned multiple jurisdictions to include the Houston, Arlington, Corpus Christi, Brownsville and McAllen areas in Texas as well as Louisiana, Colorado, Washington, and California, authorities arrested a total of 20 people. They join three individuals who were previously in custody. Two are now deceased. Zamudio-Mendoza, who is believed to be in Mexico, and 15 others are still at large, and warrants remain outstanding for their arrests.
The indictment, returned Dec. 14, 2023, also seeks forfeiture of any illegal proceeds of the alleged crimes, estimated at $10 million. To date, records indicate authorities have seized approximately 550 kilograms of meth, 249 kilograms of cocaine, 34 kilograms of heroin, five kilograms of pentobarbital, and 22,600 fentanyl-laced pills. As part of the arrests, they also allegedly found nine firearms and several luxury Rolex watches and large amounts of U.S. currency to include $190,000 seized during a traffic stop in Porter.
All are charged with conspiracy to possess with intent to distribute cocaine, fentanyl, heroin, and meth and face up to life in prison. Each is also charged in varying counts to include conspiracy to launder monetary instruments, laundering of monetary instruments, possession with intent to distribute meth, heroin, fentanyl, and/or cocaine.
Some of the defendants have already made their appearances in federal court before U.S. Magistrate Judge Andrew Edison. Others are set for April 2 at 10 a.m. in Galveston or April 3 at either 11 a.m. or 2 p.m in Houston.
DEA and USMS investigated the case, with assistance from the Houston Police Department, Galveston Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Kenneth Cusick and Rick Hanes for the Southern District of Texas are prosecuting the case.
The arrests are the culmination of a 63-month Organized Crime Drug Enforcement Task Forces investigation (OCDETF) dubbed Operation Rainmaker that began in 2019. 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 on the Justice Department’s OCDETF webpage.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Peruvian National Extradited for Overseeing Call Center That Threatened and Defrauded Spanish-Speaking U.S. ConsumersRead the Press Release
A resident of Lima, Peru, was extradited to the United States and made his initial appearance today in Miami federal court, where he stands accused of operating a large fraud and extortion scheme.
Jose Alejandro Zuñiga Cano, 40, was arrested on Feb. 26, 2023, by Peruvian authorities pursuant to a U.S. extradition request. He has remained incarcerated in Peru since that time.
According to the indictment, the defendant managed and operated Peruvian call centers from January 2014 through February 2019. The defendant and his co-conspirators in Peru allegedly used Internet-based telephone calls to contact Spanish-speaking individuals in the United States. The call centers falsely told victims they had won raffles for free products, including computer tablets with English language courses. Many consumers expressed interest in receiving the free products. In later calls, victims were told they were required to make large payments to receive the products. When victims objected, the callers misrepresented that the victims had unlawfully failed to pay for or receive delivery of products.
“The Justice Department’s Consumer Protection Branch will pursue and prosecute transnational criminals responsible for defrauding vulnerable U.S. consumers, wherever they are located. I thank the Republic of Peru, including the Peruvian National Police, for its assistance extraditing this individual to face charges here in the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department and U.S. law enforcement will continue to work closely with law enforcement partners across the globe to bring to justice criminals who attempt to defraud U.S. victims from outside the United States.”
“Collaboration between countries enhances efforts to strengthen rule of law,” said Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS) Miami Division. “The U.S. Postal Inspection Service thanks the Republic of Peru and our law enforcement partners who were determined to dismantle this transnational scheme to defraud U.S. consumers via the U.S. mail and telephonically. Together, we sent a strong message, globally, that justice has no borders.”
According to the indictment, the defendant and his co-conspirators falsely claimed to be lawyers, court officials, police officers, and representatives of a supposed “minor crimes court.” The defendant and his co-conspirators falsely told the victims that they had a contractual obligation to pay for and receive products and had caused legal problems for themselves and others by allegedly failing to do so. The indictment alleges that the callers also falsely threatened victims with court proceedings, arrest, negative marks on their credit reports, or immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. According to the indictment, many victims paid because of these baseless threats.
At times, the defendant and his co-conspirators re-victimized the same victims with a related “restitution” fraud scheme. According to the indictment, the defendant and his co-conspirators placed additional calls to those victims who had already paid and, while posing as lawyers from a U.S. court, falsely represented that victims were entitled to restitution payments that would compensate them for their losses to the defendant and his co-conspirators in the first part of their scheme. The defendant and his co-conspirators fraudulently told these victims that they needed to pay a percentage of their restitution to a lawyer who supposedly brought a case and recovered restitution on their behalf. In reality, there was no lawyer, no restitution order, and no funds were returned to the victims who made these additional payments.
A seven-count federal indictment was filed against the defendant in the U.S. District Court for the Southern District of Florida in November 2021 and was unsealed upon the defendant’s extradition to the United States. The defendant has been charged with conspiracy, wire fraud, and extortion. An indictment merely alleges that crimes have been committed. If convicted, Zuñiga faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
USPIS investigated the case.
The Justice Department’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, State Department’s Diplomatic Security Service, U.S. Marshals Service, Peruvian National Police and the Peruvian Attorney General’s Office provided critical assistance.
Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorney Carolyn Rice of the Civil Division’s Consumer Protection Branch are prosecuting the case.
The Justice Department continues to investigate and bring charges in other similar matters involving threats against Spanish-speaking residents of the United States. 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. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Consumer 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 https://www.ovc.gov.
For more information about the Consumer Protection Branch and its fraud enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Massachusetts Man Arrested on Federal Dogfighting ChargesRead the Press Release
A Massachusetts man was arrested today in Hanson, Massachusetts, for allegedly possessing dogs for participation in a dogfighting venture at his Massachusetts home.
According to the criminal indictment, John Murphy, 50, of Hanson, was charged on nine counts of possessing animals for use in an animal fighting venture, in violation of the federal Animal Welfare Act. At his home, Murphy possessed items associated with participation in a dogfighting venture. This included intravenous infusion equipment, syringes, anabolic steroids, a skin stapler, forceps, equipment and literature for training dogs including a slat mill and a flirt pole, break sticks used to separate fighting dogs and a breeding stand used to immobilize female dogs during breeding to prevent harm while mating.
The United States also filed a civil complaint for forfeiture of 13 pit bull-type dogs seized by federal agents while executing a federal search warrant in June 2023 of Murphy’s residence and another residence in Townsend, Massachusetts. The dogs are currently in the custody of the U.S. Marshals Service (USMS) and are being cared for by a USMS contractor. The civil complaint also alleges that several of the seized dogs had scarring.
The civil forfeiture complaint further alleges that Murphy frequently communicated with other dogfighters via Facebook. Murphy also allegedly posted several dogfighting-related photos to his Facebook account, including a photo of a pit bull-type dog with scarring and discolorations on its head and leg consistent with that of dogfighting, as well as a photo of a pit bull-type dog restrained in a breeding stand. Additionally, in 2019, 2020 and 2021, Murphy allegedly posted videos that depicted pit bull-type dogs physically tethered to treadmill-like-devices commonly used to physically condition dogs in preparation for a dogfight.
To report animal fighting crimes, please contact your local law enforcement or the U.S. Department of Agriculture’s Office of Inspector General (USDA-OIG) complaint hotline at usdaoig.oversight.gov/hotline or 1-800-424-9121.
For each charge of possessing animals for use in an animal fighting venture, Murphy faces a maximum penalty of five years in prison, three years of supervised release and a fine of up to $250,000.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD), Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts, Acting Special Agent in Charge Christopher P. Robinson of USDA-OIG’s Northeast Region, Interim Colonel John E. Mawn Jr. of the Massachusetts State Police and Director Joseph F. King of the Animal Rescue League of Boston’s Law Enforcement Division made the annoucement.
USDA-OIG investigated the case with valuable assistance from Homeland Security Investigations; U.S. Customs and Border Protection; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Coast Guard Investigative Service; USMS; Maine State Police; New Hampshire State Police; Massachusetts Office of the State Auditor; Rhode Island Society for the Prevention of Cruelty to Animals and police departments of Hanson, Boston and Acton, Massachusetts.
Trial Attorney Matthew T. Morris of ENRD’s Environmental Crimes Section and Assistant U.S. Attorneys Danial E. Bennett and Kaitlin J. Brown for the District of Massachusetts are prosecuting the criminal case. Senior Trial Attorney J. Brett Grosko and Trial Attorney Caitlyn F. Cook of ENRD’s Wildlife and Marine Resources Section and Asset Recovery Unit Chief Carol E. Head for the District of Massachusetts are pursuing the civil forfeiture case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The United States must establish that the dogs are subject to forfeiture by a preponderance of the evidence.
Federal Court Permanently Bars Michigan Women and Her Businesses Based on Fraudulent Conduct and Orders them to Disgorge Nearly $690,000Read the Press Release
A federal court in Detroit, has permanently barred Annetta Powell and her seven tax preparation-related businesses, Alliance Tax Services Inc., Nationwide Tax Services Inc., Tax Expert Stores Inc., United Tax Services Inc., Top Financial Specialists Inc., United Financial Team Corporation and Speedy Tax Stores Corporation, from preparing federal tax returns for others and from owning or operating a tax return preparation business. The court also ordered the defendants to disgorge $689,797.91 to the United States, representing the ill-gotten gains that the defendants received for preparing certain categories of fraudulently prepared returns from 2019 through 2021.
The order and the judgment of permanent injunction follow a twelve-day trial held from November 2023 to January 2024. The order, signed by U.S. District Judge Mark A. Goldsmith for the Eastern District of Michigan, notes that the “Defendants’ preparation of fraudulent returns was widespread” and that “all of Powell’s stores and many preparers routinely violated IRS rules and regulations.” According to the court’s order, Powell, through her several companies, operated up to five tax preparation stores in Detroit, Pontiac, and Flint, first under the name “The Tax Experts” and then, since 2021, under the name “Speedy Tax Stores.” The court found that the “harm caused by Defendants’ fraudulent tax preparation scheme was severe and widespread, occurring across five stores for nearly a decade.” The court concluded that the Defendants “prepared too many fraudulent tax returns with similar issues … for the pattern to have been random.”
In reaching its conclusion, the court noted that Powell refused to cooperate with the IRS investigation and took active steps to “thwart [the investigation] by altering customers’ files and returns and manipulating the use of an Electronic Filing Identification Number (EFIN), which is a number assigned to a taxpayer that the IRS uses to monitor the returns preparers submit. Powell could not obtain an EFIN because of her criminal record so her stores used EFIN numbers under someone else’s name. This misconduct, along with other past fraudulent conduct, led the court to determine that Powell “would likely find new ways to prepare fraudulent returns” if she were not permanently barred from doing so.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
IRS investigated the case.
Trial Attorneys Bradley Sarnell, Elizabeth Kirby, Daniel Applegate, Thelma Lizama, Eric Ashby II and Steven Shashy of the Justice Department’s Tax Division prosecuted the case.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Ciudadano Peruano Extraditado Por Dirigir Un Centro De Atención Telefónica Desde El Que Amenazaban Y Estafaban A Consumidores De Habla Hispana En Los Estados UnidosRead the Press Release
El Departamento de Justicia y el Servicio de Inspección Postal de los Estados Unidos dieron a conocer hoy que un residente de Lima, Perú, fue extraditado a los Estados Unidos y compareció por primera vez en el tribunal federal de Miami, en el día de la fecha, donde se lo acusó de dirigir un vasto complot dedicado a extorsiones y estafas.
José Alejandro Zuñiga Cano, 40 años, ciudadano de Lima, Perú, enfrentará cargos federales. Zuñiga fue detenido el 26 de febrero de 2023 por las autoridades peruanas en virtud de un pedido de extradición de los Estados Unidos. Desde entonces, permanece detenido en Perú.
De acuerdo con la acusación formal, el acusado administró y dirigió centros de atención telefónica en Perú desde enero de 2014 hasta febrero de 2019. Supuestamente, el demandado y sus cómplices en Perú hacían llamadas telefónicas vía internet para contactar personas de habla hispana en los Estados Unidos. Desde los centros de atención telefónica, se engañaba a las víctimas diciéndoles que habían ganado sorteos de productos gratuitos, que incluían tablets con cursos de inglés. Muchos consumidores manifestaban su interés por recibir los productos gratuitos. En llamadas sucesivas, se les informaba a las víctimas que debían realizar pagos cuantiosos para recibir los productos. Cuando las víctimas se oponían, quienes llamaban los engañaban diciéndoles que habían incurrido en una conducta ilegal por no haber pagado o recibido los productos.
“La División de Protección al Consumidor del Departamento de Justicia se compromete a perseguir y enjuiciar a los delincuentes internacionales responsables de estafar a consumidores vulnerables en los Estados Unidos, en cualquier lugar donde se encuentren. Agradezco a la República del Perú, y a la Policía Nacional del Perú, por su colaboración para extraditar a esta persona a fin de que enfrente cargos aquí en los Estados Unidos”, declaró el fiscal general principal adjunto, Brian M. Boynton, jefe de la División Civil del Departamento de Justicia. “El Departamento de Justicia y la policía de los Estados Unidos seguirán trabajando en estrecha colaboración con sus socios de las fuerzas de seguridad en todo el mundo para enjuiciar a los delincuentes que intentan estafar a víctimas estadounidenses desde el extranjero”.
“La colaboración entre países mejora los esfuerzos para fortalecer el estado de derecho. El Servicio de Inspección Postal de los Estados Unidos agradece a la República del Perú y a nuestros colegas de las fuerzas de seguridad que actuaron con determinación para desmantelar este complot dedicado a estafar consumidores estadounidenses a través del correo postal de los Estados Unidos y por vía telefónica. Juntos, enviamos un mensaje contundente, a nivel mundial, de que la justicia no tiene fronteras”, declaró Juan A. Vargas, Inspector encargado del Servicio de Inspección Postal de los Estados Unidos, División Miami.
De acuerdo con la acusación formal, el acusado y sus cómplices fingían ser abogados, funcionarios judiciales, oficiales de policía y representantes de un supuesto “tribunal de delitos menores”. El acusado y sus cómplices engañaban a las víctimas diciéndoles que tenían una obligación contractual de pagar y recibir los productos y que habían causado problemas legales para ellos mismos y para terceros supuestamente por no haber cumplido esa obligación. La acusación formal establece que quienes hacían las llamadas también amenazaban a las víctimas, de manera fraudulenta, con juicios, detenciones, calificaciones negativas en sus informes crediticios o consecuencias por su condición de inmigrantes si no pagaban de inmediato los productos supuestamente entregados y los aranceles de cancelación. De acuerdo con la acusación formal, muchas víctimas terminaron pagando debido a estas amenazas infundadas.
En algunos casos, el acusado y sus cómplices revictimizaban a las mismas víctimas mediante una organización fraudulenta relacionada de “restitución de productos”. De acuerdo con la acusación formal, el acusado y sus cómplices hacían nuevas llamadas a víctimas que ya habían pagado y, fingiendo ser abogados de un tribunal de los Estados Unidos, declaraban falsamente que las víctimas tenían derecho a pagos de restitución que compensarían las pérdidas sufridas a manos del acusado y sus cómplices en la primera parte de la conspiración. El acusado y sus cómplices engañaban a estas víctimas diciéndoles que debían pagar un porcentaje de la restitución a un abogado que supuestamente había iniciado una causa judicial y que había logrado la restitución del producto en nombre de la víctima. En realidad, no existía ningún abogado, ninguna orden de restitución y no se devolvía ningún monto a las víctimas que realizaban estos pagos adicionales.
En noviembre de 2021, se presentó una acusación penal federal sobre 7 delitos contra el acusado en el Tribunal de Distrito de los Estados Unidos para el Distrito Sur de Florida, que fue refrendada con la extradición del acusado a los Estados Unidos. El acusado enfrenta cargos de conspiración, fraude electrónico y extorsión. La acusación formal solo alega que se cometieron delitos. Si es condenado, Zuñiga enfrenta una pena máxima de 20 años de prisión. Un juez del tribunal federal de Distrito dictará sentencia después de considerar las Directrices para la Imposición de Condenas de los Estados Unidos y otros factores establecidos por ley.
Todos los acusados se presumen inocentes hasta que se demuestre lo contrario más allá de una duda razonable.
La fiscalía de la causa está a cargo del abogado sénior y coordinador de juicios penales internacionales, Phil Toomajian y de la abogada Carolyn Rice de la División de Protección al Consumidor del Departamento de Justicia. El Servicio de Inspección Postal de los Estados Unidos investigó el caso. Asimismo, colaboraron intensamente la Oficina de Asuntos Internacionales de la División Penal, la Fiscalía de los Estados Unidos para el Distrito Sur de Florida, el Servicio de Seguridad Diplomática del Departamento de Estado, el Servicio de jefes de policía de los Estados Unidos, la Policía Nacional del Perú y la Fiscalía del Procurador General del Perú.
El Departamento de Justicia continúa investigando y acusando formalmente a sospechosos en otras causas similares que incluyen amenazas contra residentes de habla hispana de los Estados Unidos. Si usted o alguien que conoce tiene más de 60 años y sufrió una estafa económica, cuenta con la asistencia de profesionales expertos en la Línea gratuita nacional de atención para adultos mayores: 1-833-FRAUD-11 (1-833-372-8311). Esta línea gratuita del Departamento de Justicia de los Estados Unidos, administrada por la Oficina de Asistencia para Víctimas de Delitos, brinda ayuda personalizada a las personas que llaman mediante la evaluación de las necesidades de la víctima y la identificación de los próximos pasos correspondientes. Los administradores del caso identifican los organismos en los que corresponde hacer la denuncia, proporcionan información a quienes llaman para ayudarlos a presentar la denuncia, ponen en contacto a las personas que llaman directamente con los organismos correspondientes y ofrecen recursos y derivaciones, caso por caso. El primer paso es presentar la denuncia. Denunciar puede ayudar a las autoridades a identificar a quienes cometen delitos y denunciar determinadas pérdidas económicas por estafa lo antes posible puede aumentar la probabilidad de recuperar lo perdido. La línea gratuita está disponible de lunes a viernes de 10:00 a. m. a 6:00 p. m. hora del este de los Estados Unidos, en inglés, español y en otros idiomas.
Para obtener más información acerca de las gestiones del Departamento para ayudar a los adultos mayores estadounidenses, visite su página web de la Iniciativa de Justicia para los Adultos Mayores. Para obtener más información acerca de la División de Protección al Consumidor y sus gestiones para la aplicación de la ley, visite su sitio web en https://www.justice.gov/civil/consumer-protection-branch. Los consumidores pueden presentar sus reclamaciones ante la Comisión Federal de Comercio (FTC) en https://reportfraud.ftc.gov/ o por teléfono llamando al 877-FTC-HELP. El Departamento de Justicia ofrece varios recursos relacionados con la victimización de personas mayores por estafas a través de su Oficina de Asistencia a las Víctimas de Delitos, a la que se puede acceder en https://www.ovc.gov.
Para obtener más información sobre la División de Protección al Consumidor y sus medidas de lucha contra el fraude, visite su sitio web en www.justice.gov/civil/consumer-protection-branch.Readout of Justice Department’s Procurement Collusion Strike Force’s Summit in AtlantaRead the Press Release
The Justice Department, U.S. Attorney’s Office for the Northern District of Georgia and the Procurement Collusion Strike Force (PCSF) hosted a summit today where procurement officials and law enforcement partners from across the Atlanta metropolitan area convened to raise awareness of collusion, corruption and fraud schemes that target government spending. U.S. Attorney Ryan K. Buchanan and Assistant U.S. Attorney Christopher J. Huber for the Northern District of Georgia, PCSF Director Daniel W. Glad, Trial Attorneys Brittany E. McClure and Vijay N. Rao of the Justice Department’s Antitrust Division and federal law enforcement partners were joined by representatives from state and local government agencies.
During the summit, U.S. Attorney Buchanan and Director Glad reflected on the PCSF’s growth and success since its inception in 2019. They detailed additional resources the department has dedicated to combat procurement collusion and emphasized the importance of law enforcement partnerships and a whole-of-government response to persistent threats in government spending. They also sharpened the PCSF’s focus on the challenges, risks and opportunities posed by significant government spending in and around the Atlanta metropolitan area under the Investment in Infrastructure and Jobs Act, which will provide billions in federal spending in Georgia over the next several years.
U.S. Attorney Buchanan and Director Glad also outlined the ways that federal, state and local government agencies can partner with the PCSF to address these emerging threats. Other topics discussed at the summit included ways that government agencies can strengthen their procurement processes to better protect taxpayer funds and meet the mission to provide services to residents. Summit participants included representatives from the FBI, Department of Transportation Office of Inspector General, Environmental Protection Agency Office of Inspector General, Department of Commerce Office of Inspector General, Department of Homeland Security Office of Inspector General, General Services Administration Office of Inspector General, Air Force Office of Special Investigations, Department of the Army Criminal Investigative Division, Defense Criminal Investigative Service, Georgia Department of Education, Georgia Department of Transportation and City of Atlanta Office of Inspector General.
The PCSF is the Justice Department’s coordinated, national law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact procurement, grant and program funding at all levels of government — federal, state and local. The PCSF is comprised of the Antitrust Division, multiple U.S. Attorneys’ Offices around the country, the FBI and Inspectors General for multiple federal agencies.
Since its inception in November 2019, the PCSF has opened more than 100 criminal investigations and trained more than 31,000 people. In that time, the PCSF and Antitrust Division have investigated and prosecuted over 65 companies and individuals involving over $500 million worth of government contracts. The summit marks the department’s continued support of the PCSF as it enters its fifth year. To learn more about the PCSF, or to report collusion affecting government contracts, please visit www.justice.gov/atr/procurement-collusion-strike-force.
Trial Attorney McClure, Director Glad, Trial Attorney Rao, U.S. Attorney Buchanan and Assistant U.S. Attorney Huber attend the summit.Latvian Broker Arrested for Allegedly Smuggling Advanced U.S. Aircraft Technology to RussiaRead the Press Release
In a superseding indictment returned by a grand jury, a citizen of the Republic of Latvia is charged with crimes related to a years-long conspiracy to sell sophisticated avionics equipment to Russian companies, in violation of U.S. export laws. The defendant is the third to be arrested and charged in connection with the conspiracy led by a Kansas company and two U.S. nationals.
According to the superseding indictment, Oleg Chistyakov, also known as Olegs Čitsjakovs, 55, conspired with U.S. citizens Cyril Gregory Buyanovsky and Douglas Edward Robertson, of Kansas, to facilitate the sale, repair and shipment of U.S. avionics equipment to customers in Russia and in other countries that operate Russian-built aircraft, including the Federal Security Service of Russia (FSB). Chistyakov was arrested on March 19 near Riga, Latvia, and remains detained pending extradition proceedings. In December 2023, Buyanovsky pleaded guilty to conspiracy and conspiracy to commit money laundering, and consented to the forfeiture of over $450,000 worth of avionics equipment and a $50,000 personal forfeiture judgment.
“As alleged, Mr. Chistyakov facilitated hundreds of thousands of dollars in illicit transactions to funnel sophisticated U.S. aerospace technology to companies in Russia,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This arrest is another example of the Justice Department’s unwavering mission to hold accountable those who enable Russian aggression, including those involved in facilitation networks that fuel the Russian war effort.”
“The Justice Department upholds the laws of the United States and prosecutes those who break them regardless of whether those individuals are on U.S. soil or the other side of the world,” said U.S. Attorney Kate E. Brubacher for the District of Kansas. “Oleg Chistyakov’s arrest was only possible due to the assistance and cooperation of authorities in Latvia. This type of international cooperative effort makes it immensely challenging for those accused of committing crimes against the U.S. to find safe havens beyond reach of our judicial system.”
“The FBI and our partners continue to pursue anyone who aids Russia in its unjust and autocratic behavior or to violate export control laws or any other law for that matter,” said Executive Assistant Director Larissa Knapp of the FBI’s National Security Branch. “Today’s indictment and forfeiture judgment should serve as a reminder that we will not tolerate attempts to transfer sensitive avionics equipment and technology to hostile nations.”
“It doesn't matter if you’re in Kansas or in Latvia — if you violate American law, you risk facing American justice,” said Assistant Secretary of Commerce Matthew S. Axelrod for Export Enforcement. “We continue to work closely with law enforcement partners across the globe to pursue those who seek to send military-grade aerospace equipment to support the Russian military.”
According to court documents, after Russia’s full-scale invasion of Ukraine in February 2022 and despite additional U.S. economic countermeasures levied against Russia, Chistyakov and his conspirators continued to smuggle and export sophisticated and controlled avionics equipment to companies in Russia without the required licenses from the U.S. Department of Commerce.
As further alleged, Chistyakov, while operating from Latvia, worked with Buyanovsky and Robertson through their U.S. company, KanRus Trading Company Inc. (KanRus), to circumvent U.S export laws by purchasing avionics equipment from U.S. companies for customers in Russia. Chistyakov allegedly acted as a broker for KanRus by soliciting quotes, negotiating prices and terms of delivery, and facilitating payments between KanRus and customers in Russia.
The superseding indictment details actions allegedly taken by Chistyakov and his conspirators to conceal their illegal activities including by creating false invoices, transshipping items through third-party countries, such as Germany and the United Arab Emirates (UAE), using bank accounts in third-party countries, such as Kazakhstan, Kyrgyzstan and the UAE, and exporting items to intermediary companies which then reexported the items to the ultimate end destinations.
On Dec. 6, 2023, the U.S. Department of Commerce added many of the entities and individuals involved in Chistyakov’s alleged illegal export scheme to the Commerce Department’s Entity List as part of the U.S. government’s interagency efforts to dismantle Russian procurement networks designed to circumvent U.S. export controls and sanctions imposed in response to Russia’s invasion of Ukraine. The Entity List imposes specific license requirements on all listed individuals and entities.
Chistyakov is charged with one count of conspiracy, two counts of violation of Export Control Reform Act, multiple counts of smuggling goods from the United States, conspiracy to commit international money laundering and two counts of international money laundering. If convicted, he faces a maximum penalty of five years in prison for conspiracy, 20 years in prison for each Export Control count, 10 years in prison for each smuggling count and 20 years in prison for each money laundering count.
The FBI and the Department of Commerce’s Office of Export Enforcement are investigating the case, including participation in Latvia following Chistyakov’s arrest. Procedural actions were carried out in close cooperation with the State Security Service of the Republic of Latvia and assistance of the Prosecutor-General’s Office.
Assistant U.S. Attorneys Scott Rask and Ryan Huschka for the District of Kansas and Trial Attorney Adam Barry of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. The Justice Department’s Office of International Affairs is providing valuable assistance.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
Justice Department and Federal Trade Commission File Statement of Interest in Hotel Room Algorithmic Price-Fixing CaseRead the Press Release
The Justice Department joined by the Federal Trade Commission (collectively the “Agencies”), filed a statement of interest with the District of New Jersey in the case of Cornish-Adebiyi v. Caesars Entertainment, which explains that hotels cannot collude on room pricing and cannot use an algorithm to engage in practices that would be illegal if done by a real person.
Companies across the economy are increasingly using algorithms to determine their prices. When a small group of algorithm providers can influence a major segment of a market, competitors are better able to use the algorithm provider to facilitate collusion. This risk is even greater as markets have become more concentrated across a wide range of industries. Algorithms that recommend prices to numerous competing hotels make it harder for travelers to comparison-shop for the best rate.
In their statement, the Agencies highlight two key aspects of competition law. First, plaintiffs do not need to identify direct communications between competitors to allege an agreement under Section 1 of the Sherman Act, particularly when they allege that an algorithm provider that works with the competitors is acting in concert with them. Competitors cannot lawfully cooperate to set their prices, whether via their staff or an algorithm, even if the competitors never communicate with each other directly. Second, an agreement to use shared pricing recommendations, list prices or pricing algorithms is still unlawful even when co-conspirators retain some pricing discretion. Setting or recommending initial starting prices can still violate the antitrust laws even if those are not the prices that consumers ultimately pay.
The Agencies have a strong interest in protecting consumers from algorithmic collusion, and their statement provides guidance to any firm that uses an algorithm to set prices. The Agencies recently filed a statement of interest in an algorithmic price-fixing case in the residential housing market, and the Justice Department’s Antitrust Division filed a statement of interest and memorandum of law in another real estate algorithmic price-fixing case last year. The division also has an ongoing case alleging that a middleman orchestrated a yearslong conspiracy to share pricing and other sensitive information among meat processing competitors.
Justice Department Seeks to Shut Down Broward County, Florida Tax Return PreparerRead the Press Release
The Justice Department filed a civil injunction suit today to permanently bar Dexter Bataille and his tax return preparation business, Capital Financial Holdings LLC, from preparing federal income tax returns for others. The United States also seeks an order demanding Bataille disgorge his ill-gotten gains earned by preparing fraudulent tax returns.
The complaint, filed in the U.S. District Court for the Southern District of Florida, alleges that Bataille prepared hundreds of federal income tax returns from 2015 through 2023 that intentionally understated customers’ tax liabilities and overstated the refunds to which they were entitled. The complaint describes the various schemes Bataille allegedly used to, among other things, fraudulently increase customers claims for Earned Income Tax Credits and Additional Child Tax Credits by manipulating customers’ taxable income in fabricating household help income, misreporting their filing statuses or claiming false business income and losses. Bataille’s alleged, systematic fraudulent manipulation of customers’ tax liabilities and refund claims has caused a significant loss in federal tax revenue, estimated to be over $1.5 million for tax year 2021 alone.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Attorneys from the Tax Division are handling the case.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Bataille Complaint.pdfJustice Department Continues Efforts to Stop Unlawful Tax Return PreparersRead the Press Release
The Justice Department today urged taxpayers to choose their return preparers wisely as the April 15 federal tax filing deadline approaches. Unscrupulous preparers who include errors or false information on a tax return could leave a taxpayer open to liability for unpaid taxes, penalties and interest.
“Taxpayers must look out for unscrupulous preparers, who often will promise refunds that are too good to be true,” said Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “If your tax preparer asks you to sign a blank return, refuses to sign your return as your preparer or fails to give you a copy of your return, consult the IRS’s website to make sure that you are not exposing yourself to trouble. Taxpayers are responsible for the information on their tax return, so it is important to choose a tax professional that you trust to prepare your returns correctly.”
“Tax preparers contemplating filing false returns for their customers should know that our criminal prosecutors are prepared for the filing season too,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “As the division’s work this past year reflects, we have the expertise and resources to identify and hold preparers fully accountable for their criminal conduct.”
Over the last year, the Tax Division has worked with U.S. Attorneys’ Offices around the country to bring civil and criminal actions against dishonest tax preparers. These actions seek criminal penalties and civil injunctions to stop ongoing fraud, civil penalties or disgorgement of ill-gotten proceeds. The Justice Department’s message has been clear: those who prepare fraudulent returns will face serious and lasting consequences.
Examples of civil injunctions obtained by the Tax Division over the last and current filing seasons include:
- On March 2, 2023, a federal district court in the Southern District of Florida permanently barred Rudy Aly, Rhonda Hudge, Cindy Odige and TUPS Tax LLC from preparing tax returns for others or owning or operating a tax preparation business. The court also ordered Aly to disgorge approximately $400,000 in proceeds he received from preparing tax returns from 2018 to 2020. The court ordered Hudge to pay about $15,000 and Odige and TUPS Tax to pay $48,000 based on their settlement agreements with the United States.
- On May 17, 2023, a federal district court in the Eastern District of New York permanently barred Melida Portorreal individually and through her business, International Travel Multi & Tax Corp., from preparing returns for others and from owning or operating a tax return preparation business in the future. The government alleged that Portorreal prepared tax returns claiming fabricated business income and expenses, as well as various false tax deductions and false non-deductible expenses for her customers to receive the earned income tax credit and the child tax credit. The government estimated that Portorreal’s actions caused losses to the United States exceeding $3 million over a three-year period.
- On Sept. 1, 2023, a federal court in the Southern District of Texas permanently enjoined a Galveston-area tax preparer Johnathan Perry, doing business as X-Pert Taxes, from preparing tax returns or assisting or directing the preparation or filing of tax returns. The complaint says that Perry, over a six-year period, prepared over 4,000 tax returns that greatly overstated his customers’ tax refunds by claiming fictitious business income and expenses, fabricated household help income and fake education credits or fuel tax credits to which his customers were not entitled. The court also ordered Perry to pay around $325,000 to the United States in ill-gotten tax preparation fees.
The Tax Division has also sought to strip fraudulent preparers of ill-gotten gains and to hold in contempt those who attempt to flout court-ordered restraints on further fraudulent activity. Over the last year, the division has brought cases to court including:
- On March 22, 2023, a federal district court in the Southern District of Florida held that Jeffrey Cadet violated a permanent injunction entered against him in August 2019 that barred him from acting as a federal tax return preparer or requesting, assisting in or directing the preparation or filing of federal tax returns for others. To remedy his contempt, the court ordered Cadet to disgorge $24,410 in ill-gotten fees he received for conduct violating the injunction and ordered him to pay the United States about $7,400 in reimbursement for the attorneys’ fees incurred in investigating and litigating his post-injunction conduct.
- On May 11, 2023, a federal court for the Southern District of Texas permanently barred Houston-area tax return preparer Hollins Ray Alexander from preparing tax returns for others and from owning, operating or franchising any tax return preparation business in the future. The terms of injunction required Alexander to send notices of the injunction to each person for whom he prepared tax returns and to post the injunction in places he conducts business, including social media accounts and websites. Finally, the court ordered Alexander to pay $165,940 to the United States in illicitly obtained tax preparation fees.
- On July 11, 2023, federal court in the Southern District of Florida found Rose M. Chazulle in contempt for violating the injunction that bars her from preparing tax returns. The court found that Chazulle continued to prepare tax returns despite the court’s order entered in 2016 prohibiting her from doing so by using the personal tax identification numbers (PTIN) assigned to her daughter and brother-in-law and electronic filing identification numbers (EFINs) associated with their businesses. As a contempt sanction, the court ordered Chazulle to disgorge $48,100 in tax preparation fees she earned in violation of the injunction.
Criminal convictions against fraudulent preparers obtained by the Tax Division since the 2023 filing season began include:
- In February 2023, Thanh Ngoc Rudin and Seir Havana of California were sentenced to 34 months and 42 months in prison, respectively, for their role in a conspiracy to prepare and file false tax returns for professional athletes. Both were also ordered to pay over $38 million in restitution to the United States.
- In March 2023, Labanda Lody and Jaleesia Sais, Texas return preparers, were sentenced to over four and three years in prison, respectively, for their role in preparing and filing false tax returns on behalf of clients of their return preparation business. Lody and Sais were both ordered to pay nearly $1 million in restitution to the United States.
- In August 2023, Georgina Gonzalez, formerly a Miami-based return preparer, was sentenced to over three years in prison for her role in filing false tax returns that claimed false losses and tax credits on behalf of clients. She was also ordered to pay $423,917 in restitution to the United States.
- In November 2023, Adam Earnest, Christopher Randell and James Klish, return preparers in Jackson, Mississippi, were found guilty for their role in conspiring to file thousands of false income tax returns on behalf of customers of the tax return preparation business where they worked. For their conduct, Earnest was sentenced to more than eight years, Klish more than four years, and Wells to 15 months in prison for their role in a conspiracy to prepare and file false tax returns for their customers.
- In December 2023, Ronald Eugene Watson, a Maryland return preparer, was sentenced to over two years in prison for filing false returns for clients. He was also ordered to pay $268,634 in restitution to the United States.
The Tax Division reminds taxpayers that the IRS has information, tips and reminders on its site for choosing a tax preparer carefully (Choosing a Tax Professional and How to Choose a Tax Return Preparer) and has launched a free directory of credentialed federal tax preparers. The IRS also offers taxpayers tips to protect their identities and wallets when filing their taxes.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $79,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Justice Department’s Tax Division has obtained civil injunctions and criminal convictions 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.
Justice Department Announces Organizational Assessment of North Miami Police Department under Office of Community Oriented Policing Services’ Collaborative Reform InitiativeRead the Press Release
The Justice Department’s Office of Community Oriented Policing Services (COPS Office) today announced that it will conduct an organizational assessment of the North Miami Police Department through its Collaborative Reform Initiative. Over approximately the next year, the North Miami Police Department will work with the COPS Office’s Collaborative Reform Initiative Team to focus on:
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Crime Prevention and Analysis
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Community Engagement
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Technology
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Employee Wellness, Training and Development, and Retention
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Resource Analysis and Strategic Planning
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Oversight and Accountability
“The Collaborative Reform Initiative is an important vehicle for law enforcement agencies that want to improve how they operate and how they work with their communities,” said Acting Associate Attorney General Benjamin C. Mizer. “The Organizational Assessment process is the most intensive form of review and support we offer under this program, and credit goes to the North Miami Police Department for requesting this assistance.”
“This is a completely voluntary program, and it is always a significant step when a law enforcement executive asks for this type of review,” said Director Hugh T. Clements, Jr of the COPS Office. “We applaud Chief Cherise Gause for making this request. It is not just the agency that benefits from this type of work, but the entire community will reap the benefits of this in-depth examination.”
Regular updates on the team’s work with the North Miami Police Department will be provided as part of the transparency and public accountability of this new organizational assessment effort at cops.usdoj.gov/active-oa-site-north-miami-fl-police-department.
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 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 Organizational Assessment program provides the most intensive form of technical assistance on the continuum, involving in-depth assessments and long-term assistance on systemic issues that can challenge community trust and confidence. A continual assessment and implementation process ensures that time and resources are used to focus on identifying areas for improvement, reinforcing agency strengths, and assisting with the implementation of improvements expeditiously. At the same time, the process provides transparency and accountability with routine public reporting. Each engagement will be supported by a multidisciplinary assessment team composed of subject matter experts with diverse experience and perspectives including in law enforcement, community engagement, research and evaluation, program management, and organizational reform.
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.
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Fresh Express Abandons Proposed Acquisition of Dole’s Packaged Salad Business in Response to Antitrust Division’s ConcernsRead the Press Release
Today, Fresh Express Acquisition LLC’s, a wholly-owned subsidiary of Chiquita Holdings Limited (Chiquita), announced its decision to abandon its proposed $308 million acquisition of Dole plc’s Fresh Vegetables division. The abandonment comes in response to the department’s concerns about competition in the packaged salad market.
The Justice Department issued the following statement from Assistant Attorney General Jonathan Kanter of the Antitrust Division:
“At a time when food companies are already overcharging Americans for groceries, today’s abandonment preserves lower prices and availability for an essential kitchen staple. This merger would have reduced the number of competitors from three to two and raised grocery prices for food products that are purchased by 85% of American households. I am grateful for the tireless efforts of the Antitrust Division’s lawyers, economists, paralegals and professional staff who made this result possible.”
Packaged salad represents $3.2 billion in spending by grocers and their customers each year.
Nampa Man Sentenced to over 15 Years in Federal Prison for Possession with Intent to Distribute 10 Pounds of FentanylRead the Press Release
BOISE – Tyler Watson, 40, of Nampa, was sentenced to 188 months in federal prison for possessing ten pounds of fentanyl with intent to distribute it to others, U.S. Attorney Josh Hurwit announced today.
According to court records, Watson was a mid-level fentanyl distributor for a large drug trafficking organization with direct ties to Mexico. Watson locally sold approximately $15,000 worth of fentanyl pills and powder on a weekly basis. When he was arrested on June 7, 2022, he had four and a half kilos (approximately ten pounds) of fentanyl powder, 74.63 grams of fentanyl in pill form (approximately 750 pills), 55 grams of methamphetamine, and $8,608 in drug proceeds.
“With our law enforcement partners, our office will continue to vigorously pursue fentanyl traffickers,” said U.S. Attorney Hurwit. “A tiny amount of fentanyl is considered a lethal dose, and in this case, it is estimated that the defendant possessed enough fentanyl to theoretically kill 439,000 people. The magnitude of this threat is sobering, but cases like this demonstrate that, together, law enforcement is rising to the challenge of keeping Idahoans safe.”
“The Drug Enforcement Administration and our partners will work tirelessly to stop drug traffickers like Mr. Watson from dealing their poison in our communities,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The lengthy prison term that Mr. Watson received should serve as a warning to those who would seek to destroy others’ lives for their own financial gain because, if they do, we will find them and bring them to justice.”
“Collaboration and teamwork with local, state, and federal partners is necessary to keep the pressure on drug dealers,” said Nampa Police Chief Joe Huff. “These criminals need to understand we’re working together all of the time, and on every level, to keep the Treasure Valley safe. I’m very proud of the work that’s happening in my community.”
“This case illustrates the sheer magnitude of dangerous, illicit drugs with direct ties to Mexico and the Mexican Drug Cartels that are in our communities and on our streets here in Idaho,” said Canyon County Sheriff Kieran Donahue. “And this is just one example. We must continue working collaboratively with our local, state, and federal partners to enforce the rule of law and stop this blatant criminality. The very safety of our republic depends on it.”
Senior U.S. District Judge B. Lynn Winmill also ordered Watson to pay a $1,000 fine and to serve five years of supervised release following his prison sentence. Watson pled guilty to the charge on November 13, 2023.
U.S. Attorney Hurwit commended the investigation by the Drug Enforcement Administration Task Force consisting of officers from the United States Marshals Service, the United States Probation Office, the Nampa Police Department, the Boise Police Department, the Meridian Police Department, the Ada County Sheriff’s Office, the Canyon County Sheriff’s Office, and the Idaho Department of Correction Probation and Parole. Assistant U.S. Attorney David Morse prosecuted this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Man Sentenced for $87M Healthcare Fraud Kickback ConspiracyRead the Press Release
UPDATE
The defendant’s conviction was overturned pursuant to a decision by the Seventh Circuit, and he was acquitted on all counts.
An owner of a durable medical equipment (DME) company was sentenced yesterday to three and a half years in prison and ordered to forfeit $1.8 million for his participation in a healthcare fraud kickback conspiracy.
According to court documents and evidence presented at trial, Mark Sorensen, 53, of Chicago, owned Symed Inc. (Symed), a Chicago DME pharmacy that paid illegal kickbacks to obtain patients to bill to Medicare, TRICARE, and the Department of Labor’s Office of Workers’ Compensation Programs. Between 2015 and 2018, Sorensen illegally bought patient leads from Bernie Perconti, who in turn obtained the leads from others, including Craig O’Neil and Christine Anderson. Sorensen and his co-conspirators also tricked patients into agreeing to receive braces. Many times, patients received braces that they did not need or want, and sometimes received four, five, or six braces. The co-conspirators also repeatedly called and faxed doctors to get them to sign the prescriptions authorizing the braces. In total, Sorensen and his co-conspirators, through Symed, fraudulently billed Medicare $87 million and received $23.6 million.
Perconti, O’Neil, and Anderson each pleaded guilty to conspiracy to pay and receive kickbacks in October 2019, July 2020, and January 2021, respectively. Perconti and O’Neil are scheduled to be sentenced at a later date. Anderson was sentenced in April 2022.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Robert W. Wheeler Jr. of the FBI Chicago Field Office; Special Agent in Charge Mario Pinto for the Department of Health and Human Services Office of Inspector General (HHS-OIG); Special Agent in Charge Irene Lindow for the Department of Labor Office of Inspector General (DOL-OIG); and Special Agent in Charge Darrin K. Jones of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) Southeast Field Office made the announcement.
The FBI, HHS-OIG, DOL-OIG, and DCIS are investigating the cases.
Assistant Chief Leslie S. Garthwaite and Trial Attorney Jeffrey Crapko of the Criminal Division’s Fraud Section are prosecuting the case.
Justice Department Secures Agreement with Information Technology Staffing Company to Resolve Hiring Discrimination ClaimsRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with Frank Recruitment Group Incorporated (FRG), an information technology staffing company that does business under eight brand names (Revolent Group, Nigel Frank International, Mason Frank International, Washington Frank International, Anderson Frank International, Nelson Frank International, Jefferson Frank International and FRG Technology Consulting) at locations throughout the United States. The agreement resolves the department’s determination that FRG violated the Immigration and Nationality Act (INA) by excluding or deterring certain non-U.S. citizens with permission to work in the United States from applying to job opportunities because of their citizenship status.
“Employers cannot unlawfully discriminate against individuals granted asylum or refugee status in hiring,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department will continue to hold employers accountable for imposing barriers to employment based on citizenship status, in violation of our nation’s civil rights laws.”
The department’s investigation determined that FRG published several online job advertisements with language that restricted eligibility to U.S. citizens and lawful permanent residents, even though FRG had no lawful basis to do so. FRG’s restrictive job ads excluded and deterred other potentially qualified individuals, including individuals granted asylum or refugee status by the federal government, based on their citizenship or immigration status. Under the INA, employers cannot discriminate in hiring based on citizenship or immigration status unless a law, regulation, executive order or government contract requires such discrimination.
Under the terms of the settlement, FRG will pay $100,000 in civil penalties to the United States, train its employees on the INA’s anti-discrimination requirements, revise its employment policies and be subject to monitoring by the department.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute generally prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee, unfair documentary practices and retaliation and intimidation.
Find more information about how employers can avoid discrimination in hiring and recruiting on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a live webinar or watch an on-demand presentation or visit IER’s English and Spanish websites. Subscribe for email updates from IER.
Gamma Healthcare and Three of Its Owners Agree to Pay $13.6 Million for Allegedly Billing Medicare for Lab Tests That Were Not Ordered or Medically NecessaryRead the Press Release
Gamma Healthcare Inc. (Gamma), a laboratory located in Poplar Bluff, Missouri, and three of its owners, Jerry W. Murphy, Jerrod W. Murphy and Joel W. Murphy (the Murphys), have agreed to pay the United States $13,619,660.18 to resolve allegations that they violated the False Claims Act (FCA) by submitting or causing the submission of claims to Medicare for lab tests that were not ordered by health care providers and were not medically necessary. Gamma, Jerry W. Murphy and Jerrod W. Murphy also agreed to a 15-year exclusion from participating in federal health care programs.
The settlement announced today resolves allegations that, from Jan. 1, 2020, to Oct. 31, 2020, Gamma and the Murphys submitted or caused to be submitted claims to Medicare for medically unnecessary polymerase chain reaction (PCR) urinalysis laboratory tests that were not ordered by treating physicians. When a physician ordered a urinalysis (UA) with culture and sensitivity (C&S) or just a C&S, Gamma automatically performed, and submitted claims for payment to Medicare for, a urinary tract infection (UTI) panel of tests by PCR (the UTI PCR Tests). Medicare reimbursements for the UTI PCR Tests were significantly higher than reimbursements for a UA with C&S — on average, Medicare paid approximately $11 for a UA with C&S but paid an additional $573 for a panel of UTI PCR Tests. Gamma’s requisition forms were structured in a way that did not allow physicians to opt out of the UTI PCR Tests. Physicians expressed concerns to Gamma about the UTI PCR Tests as early as March 2020, including concerns that they did not order the tests, that the tests were expensive and that they were not medically necessary.
“Laboratories are permitted to bill federal healthcare programs only for medically necessary tests that are actually ordered by physicians,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to hold accountable those who seek to misuse federal healthcare programs for their own financial gain.”
“We’d like to thank the whistleblower for bringing his concerns forward,” said U.S. Attorney Sayler A. Fleming for the Eastern District of Missouri. “As a result, Gamma and its owners who were responsible for this fraud will not be able to participate in federal health care programs for 15 years, and a large sum of money is being returned to Medicare.”
“Health care providers who cause the submission of Medicare claims for medically unnecessary services pose a significant risk to the program and the patients who rely on it,” said Special Agent in Charge Linda Hanley of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG works diligently with our law enforcement partners to hold accountable individuals who, to satisfy their own greed, exploit federal health care programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Bradley Bibb M.D., a physician who owns a number of health care clinics and provided services to patients for whom Gamma performed laboratory tests. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Bibb v. Gamma Healthcare Inc. et al., No. 1:20-cv-00250-SNLJ (E.D. Mo). Bibb will receive $2,315,342.23 of the proceeds from the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Missouri, with substantial assistance from HHS-OIG and FBI. Trial Attorney Elizabeth J. Kappakas of the Civil Division’s Fraud Section and Assistant U.S. Attorney Suzanne Moore for the Eastern District of Missouri handled the matter, with the assistance of Financial Analyst Sheryl Paynter of the Civil Division.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementEl Departamento de Justicia llega a un acuerdo con una empresa de dotación de personal de TI para resolver las acusaciones de discriminación en la contrataciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Frank Recruitment Group, Incorporated (FRG), una empresa de dotación de personal en el ámbito de la tecnología de la información que opera bajo ocho marcas (Revolent Group, Nigel Frank International, Mason Frank International, Washington Frank International, Anderson Frank International, Nelson Frank International, Jefferson Frank International y FRG Technology Consulting) en localidades por todo Estados Unidos. El acuerdo resuelve la determinación del Departamento que FRG vulneró la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al excluir a ciertos no ciudadanos de los EE. UU. con permiso para trabajar en los Estados Unidos o bien disuadirlos de solicitar oportunidades laborales con base en su estatus de ciudadanía.
«Los empleadores no pueden discriminar ilegalmente a las personas con asilo o estatus de refugiado en la contratación», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento seguirá responsabilizando a los empleadores por imponer barreras al empleo en función del estatus de ciudadanía, lo que vulnera las leyes de derechos civiles de nuestra nación».
La investigación del Departamento determinó que FRG publicó varios anuncios de empleo en línea con un lenguaje que restringía la elegibilidad a ciudadanos de los EE. UU. y residentes permanentes legales, aunque FRG no tuviera motivos legales para hacerlo. Los anuncios de trabajo restrictivos de FRG excluyeron a otras personas potencialmente calificadas –y también las disuadió de solicitar un trabajo– incluidas las personas a las que el gobierno federal les ha concedido el estatus de refugiado o el asilo, con base en su estatus migratorio o ciudadanía. En virtud de la INA, los empleadores no pueden discriminar en la contratación con base en el estatus migratorio o la ciudadanía a menos que una ley, un reglamento, una orden ejecutiva o un contrato gubernamental requiera tal discriminación.
Conforme los términos del acuerdo, FRG pagará $100,000 en sanciones civiles a los Estados Unidos, capacitará a sus empleados en cuanto a los requisitos antidiscriminatorios de la INA, revisará sus políticas de empleo y se someterá a supervisión por parte del Departamento.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, por lo general, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, , prácticas documentales injustas y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminación en la contratación y el reclutamiento en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito o visualizar una presentación a la carta; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico de la IER.
Eight Arrested in San Antonio, Houston, Corpus Christi Areas on Narcotics Trafficking ChargesRead the Press Release
SAN ANTONIO – Eight individuals were arrested in various cities across the Western and Southern Districts of Texas Tuesday on criminal charges related to their alleged narcotics trafficking.
According to court documents, Rene Gonzales aka “Uber,” 31, Michael Fuentes, 50, Rene Velazquez, 52, of Mexico, Mario Zulaica, 50, George Gonzalez, 47, Reynaldo Sanchez, 38, Richard Gonzales, 40, and Rene Rivera, 41, were arrested as the result of an FBI-led investigation into the trafficking of methamphetamine, cocaine, and heroin.
During this investigation, federal, state and local law enforcement agencies seized nearly 60 kilograms of cocaine valued at more than $1 million, as well as more than $250,000 in cash.
Additionally, FBI agents learned of a clandestine laboratory in Von Ormy, Texas, that had allegedly been used to convert liquid methamphetamine to crystal methamphetamine. Law enforcement agencies dismantled the lab, seizing approximately 15 kilograms of crystal methamphetamine and 16 gallons of liquid methamphetamine.
Rene Gonzales is charged with one count of conspiracy to possess with intent to distribute more than 500 grams of a mixture or substance containing methamphetamine, one count of conspiracy to possess with intent to distribute more than 5 kilograms of a mixture or substance containing cocaine, one count of conspiracy to possess with intent to distribute more than 100 grams of a mixture or substance containing heroin, one count of possession with intent to distribute 500 grams or more of methamphetamine, aiding and abetting, one count of possession with intent to distribute 500 grams or more of methamphetamine, and two counts of possession with intent to distribute more than 5 kilograms of a mixture or substance containing cocaine, aiding and abetting. If convicted, he faces ten years to life in prison and a $10 million fine for counts one, two, four, five, six, and seven; and five to 40 years in prison with a $5 million fine for count three.
Fuentes is charged with one count of conspiracy to possess with intent to distribute more than 500 grams of a mixture or substance containing methamphetamine, one count of conspiracy to possess with intent to distribute more than 5 kilograms of a mixture or substance containing cocaine, one count of conspiracy to possess with intent to distribute more than 100 grams of a mixture or substance containing heroin, one count of possession with intent to distribute 500 grams or more of methamphetamine, aiding and abetting, and two counts of possession with intent to distribute more than 5 kilograms of a mixture or substance containing cocaine, aiding and abetting. If convicted, he faces ten years to life in prison and a $10 million fine for counts one, two, four, six, and seven; and five to 40 years in prison with a $5 million fine for counts three and eight.
Velazquez is charged with one count of conspiracy to possess with intent to distribute more than 500 grams of a mixture or substance containing methamphetamine, one count of conspiracy to possess with intent to distribute more than 5 kilograms of a mixture or substance containing cocaine, and one count of possession with intent to distribute more than 5 kilograms of a mixture or substance containing cocaine, aiding and abetting. If convicted, he faces ten years to life in prison and a $10 million fine per count.
Zulaica is charged with one count of one count of conspiracy to possess with intent to distribute more than 5 kilograms of a mixture or substance containing cocaine and one count of possession with intent to distribute more than 5 kilograms of a mixture or substance containing cocaine, aiding and abetting. If convicted, he faces ten years to life in prison and a $10 million fine per count.
George Gonzalez is charged with one count of conspiracy to possess with intent to distribute more than 100 grams of a mixture or substance containing heroin and one count of possession with intent to distribute more than 100 grams of a mixture or substance containing heroin, aiding and abetting. If convicted, he faces up to 40 years in prison and a $5 million fine per count.
Sanchez, Richard Gonzales and Rivera are each charged with one count of conspiracy to possess with intent to distribute more than 500 grams of a mixture or substance containing methamphetamine. If convicted, the three face 10 years to life in prison with a $10 million fine.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The FBI; Drug Enforcement Administration; Immigration and Customs Enforcement; San Antonio Police Department; New Braunfels Police Department; Bexar County Sheriff's Office; Texas Department of Public Safety; Texas Department of Criminal Justice - Office of Inspector General; Boerne Police Department; Alice Police Department; Houston Police Department; Chambers County Sheriff's Office; Jefferson County Sheriff's Office; Corpus Christi Police Department; Laredo Police Department; and Hollywood Park Police Department are investigating the case.
Assistant U.S. Attorney Eric Yuen is prosecuting the case.
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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Laboratory Owner Pleads Guilty to $30M Medicare Fraud SchemeRead the Press Release
A Florida man pleaded guilty today to his role in a scheme to defraud Medicare by billing for over-the-counter COVID-19 test kits and genetic tests that were ineligible for reimbursement and procured by paying illegal kickbacks and bribes.
According to court documents, Robert M. Clark, 29, of Pompano Beach, was the figurehead owner of Clear Choice Diagnostics Inc. (Clear Choice). Clark and his co-conspirators, including the true owner of Clear Choice, purchased Medicare Beneficiary Identification numbers without lawful authority and then used those numbers to bill Medicare for over-the-counter COVID-19 test kits. Clark and his co-conspirators also paid illegal kickbacks and bribes to marketers in exchange for referrals of Medicare beneficiaries for genetic tests. In total, Clark and his co-conspirators caused Clear Choice to submit approximately $30 million in fraudulent claims to Medicare for these tests, of which Medicare paid approximately $15 million.
Clark pleaded guilty to conspiracy to defraud the United States, to pay illegal health care kickbacks, and to purchase Medicare Beneficiary Identification numbers without lawful authority. He is scheduled to be sentenced on June 20 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.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division; and Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorney S. Babu Kaza of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Former President of Oklahoma Steel Pole Manufacturer Sentenced to Prison for Tax EvasionRead the Press Release
An Oklahoma man was sentenced yesterday to 30 months in prison for evading over $1 million in income taxes.
According to court documents and statements made in court, from 2014 to 2019, Phillip Barry Albert was President of Pelco Structural LLC, a steel pole manufacturing company located in Claremone, Oklahoma. During that period, Albert directed Pelco’s outside payroll service company to pay him over $2.6 million of Pelco’s funds, which should have been treated as income to him. Albert, however, instructed that the payroll company falsely characterize the payments as reimbursements rather than income, so that the payroll company would not withhold federal income taxes or report the payments as wages on Albert’s Forms W-2. Albert then did not report the payments on his income tax returns for those years.
Albert caused a tax loss to the IRS of $1,000,232.
In addition to his prison sentence, U.S. District Judge Terence Kern for the Northern District of Oklahoma ordered Albert to serve one year of supervised release and to pay approximately $1,000,232 in restitution to the United States and $2,615,750 in restitution to Pelco Industries Inc., which is the former parent company of Pelco.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma made the announcement.
IRS Criminal Investigation and the FBI are investigating the case.
Trial Attorney Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorney Thomas Duncombe for the Northern District of Oklahoma are prosecuting the case.
Justice Department Announces Opening of Nominations for the Seventh Annual Attorney General’s Award for Distinguished Service in Community PolicingRead the Press Release
Attorney General Merrick B. Garland today announced the Justice Department is now accepting nominations for the Seventh Annual Attorney General’s Award for Distinguished Service in Community Policing. These awards represent part of the Justice Department’s ongoing commitment to support the nation’s law enforcement officers who put their lives on the line every day to keep our communities safe.
The Attorney General’s Award recognizes individual state, local, and Tribal sworn, rank- and-file police officers and deputies for exceptional efforts in community policing. The awarded officers, deputies, and troopers will have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations, or innovations in policing. Within each category, an award will be given to law enforcement agencies serving small, medium, and large jurisdictions. Those agency sizes are defined as:
- Small: agencies serving populations of fewer than 50,000;
- Medium: agencies serving populations of 50,000 to 250,000; and
- Large: agencies serving populations of more than 250,000.
By acknowledging and rewarding these efforts, the Department strives to promote and sustain its national commitment to community policing and to advance proactive policing practices that are fair and effective. With the Attorney General’s Award for Distinguished Service in Community Policing, the Office of the Attorney General recognizes that the nation’s law enforcement agencies, officers, deputies, and troopers continue to work tirelessly to keep our communities safe places to live and work.
The deadline for nominations is May 6 at 8 p.m. ET. More information and the application for nominees can be found at www.justice.gov/ag/policing-award.
Justice Department Launches the National Extreme Risk Protection Order Resource CenterRead the Press Release
The Justice Department launched the National Extreme Risk Protection Order (ERPO) Resource Center (the Center) which will provide training and technical assistance to law enforcement officials, prosecutors, attorneys, judges, clinicians, victim service and social service providers, community organizations, and behavioral health professionals responsible for implementing laws designed to keep guns out of the hands of people who pose a threat to themselves or others.
“The launch of the National Extreme Risk Protection Order Resource Center will provide our partners across the country with valuable resources to keep firearms out of the hands of individuals who pose a threat to themselves or others,” said Attorney General Merrick B. Garland. “The establishment of the Center is the latest example of the Justice Department’s work to use every tool provided by the landmark Bipartisan Safer Communities Act to protect communities from gun violence.”
ERPO laws, which are modeled off domestic violence protection orders, create a civil process allowing law enforcement, family members (in most states), and medical professionals or other groups (in some states) to petition a court to temporarily prohibit someone at risk of harming themselves or others from purchasing and possessing firearms for the duration of the order.
In 2023, the Justice Department’s Office of Justice Programs (OJP) awarded $238 million to states, territories, and the District of Columbia under the Byrne State Crisis Intervention Program (SCIP), which was created by the Bipartisan Safer Communities Act and is designed to help jurisdictions implement crisis intervention strategies, including ERPO programs. In addition, OJP awarded $4 million to support training and technical assistance under Byrne SCIP, including $2 million that was awarded to the Johns Hopkins Center for Gun Violence Solutions to establish the ERPO Resource Center. In collaboration with OJP’s Bureau of Justice Assistance (BJA), the Center will support states, local governments, law enforcement, prosecutors, attorneys, judges, clinicians, victim service providers, and behavioral health and other social service providers in their efforts to implement ERPO programs to fit local needs, share resources and promising practices with the field, and help ensure that funding received through Byrne SCIP is effectively utilized.
“Supporting our law enforcement and community partners in curbing the scourge of gun violence is more critical than ever,” said Acting Associate Attorney General Benjamin C. Mizer. “In addition to other resources leveraged across the Justice Department, this Center will provide communities with new tools and technical assistance to help them implement effective crisis intervention strategies and reduce gun violence.”
“OJP’s investment in ERPO programs demonstrates the Department’s commitment to addressing the gun violence crisis in the United States,” said OJP Assistant Attorney General Amy L. Solomon. “This crisis cannot be solved at one level of government. We must use all of our resources and collaborate at the federal, state, and local levels to find innovative, evidence-based, and holistic solutions to help keep American communities safe.”
Through the Center and its newly launched website, states, local governments, law enforcement, prosecutors, attorneys, judges, clinicians, victim service providers, and behavioral health and other social service providers will have direct access to critical information that will enhance their ability to reduce firearm homicides and suicides. The website will be maintained and updated to include newly developed resources for the field created through the Center, in partnership with BJA. The website also provides a platform for the Center to highlight emerging and promising practices in successful ERPO implementation and connect states and localities to innovative strategies to reduce gun violence and save lives.
As of this month, 21 states and the District of Columbia have enacted ERPO laws. Successful and effective ERPO implementation requires a comprehensive and holistic approach that incorporates a wide range of stakeholders. The Center is designed to provide resources consistent with that need.
Man Ordered to Remove Shipping Container and Floating Docks from Lake Worth Lagoon after Violating Rivers and Harbors ActRead the Press Release
The U.S. District Court for the Southern District of Florida ordered a man to remove a shipping container and floating docks on which it rested from Lake Worth Lagoon near Palm Beach, Florida.
A 2021 complaint alleged that Fane Lozman violated the Rivers and Harbors Act (RHA) by placing the shipping container – which Lozman modified to include windows, doors, stairs, a rooftop deck and other additions – on floating docks in navigable waters of the United States without authorization. Since the United States commenced the action, Lozman removed several pieces of floating docks from Lake Worth Lagoon, but two floating docks and the modified shipping container remained.
Photo of floating docks and a shipping container on Lake Worth Lagoon, from United States’ Motion for Summary Judgment, Page 4 in U.S. v. Fane Lozman, case no. 21-cv-81119.Lozman moved the floating docks and shipping container to different areas in Lake Worth Lagoon and anchored them. One of the floating docks split apart. And Lozman’s floating docks became unmoored on several occasions including once when the dock with the shipping container on it floated across Lake Worth Lagoon and beached at a public park. The floating docks together weigh over 100,000 pounds.
Lake Worth Lagoon is Palm Beach County’s largest estuary at up to a mile wide and running approximately 21 miles from North Palm Beach to Ocean Ridge, with two inlets connecting it to the Atlantic Ocean. The Atlantic Intracoastal Waterway cuts through Lake Worth Lagoon.
“Building or placing structures in navigable U.S. waters without authorization is a violation of the Rivers and Harbors Act,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “Unlawful structures can pose increased risks of harm to others, as in this case. We’re committed to enforcing the law.”
“The Rivers and Harbors Act provides for the safety of navigable U.S. waters,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Prompt enforcement action to remove unauthorized structures is needed to protect persons and commerce in navigable U.S. waters.”
“USACE Jacksonville greatly appreciates the expertise and support that the Justice Department brought to resolving this matter,” said District Commander Col. James Booth of the U.S. Army Corps of Engineers' (USACE) Jacksonville District.
“The USACE Jacksonville regulatory enforcement program is working to deter unauthorized activities such as this, while continuously maintaining the integrity of the nation's waterways and aquatic resources,” said Compliance and Enforcement Chief Bobby Halbert of USACE’s Jacksonville District.
The USACE’s Jacksonville District referred the case to the Justice Department’s Environment and Natural Resources Division (ENRD). The Jacksonville District Enforcement Section is often aided by state and federal agencies, as well as groups and individuals who report suspected violations. To report suspected violations of the Rivers and Harbors Act, contact the Jacksonville District's enforcement program at [email protected].
Trial Attorneys Brandon N. Adkins and Rachel Martinez of ENRD’s Environmental Defense Section and Civil Section Chief Dexter Lee of the U.S. Attorney’s Office for the Southern District of Florida handled the case.
Los Angeles Attorney Charged with Tax Evasion and Willful Failure to Pay TaxesRead the Press Release
A federal grand jury in Los Angeles indicted a California attorney yesterday with attempting to evade payment of his individual income taxes and willful failure to pay taxes.
According to the indictment, Milton C. Grimes, an attorney in Los Angeles, owed the IRS more than $1.7 million in taxes for tax years 2010 and 2014. The IRS allegedly tried to collect the unpaid taxes from Grimes by, among other things, levying his bank accounts. In response to the IRS’ collection efforts, from 2014 through 2020, Grimes allegedly engaged in a scheme to thwart the IRS’ levies by keeping his personal bank account balances low by routinely purchasing cashier’s checks and withdrawing cash from his business bank accounts, often immediately after depositing funds to his business bank accounts, thereby avoiding funding his personal accounts. Grimes allegedly withdrew approximately $16 million in funds from the accounts in cashier’s checks during those years.
In addition, Grimes allegedly filed individual income tax returns for tax years 2018 through 2021 reporting that he owed approximately $700,000 in taxes. Grimes allegedly did not, and has not, paid the taxes that he self-reported he owes.
In total, Grimes is alleged to have caused a tax loss of approximately $2,418,050 to the IRS.
If convicted, Grimes faces up to five years in prison for the tax evasion count and up to one year in prison for each count of willful failure to pay taxes. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Martin Estrada for the Central District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Sara Henderson of the Justice Department’s Tax Division and Assistant U.S. Attorney Valerie Makarewicz for the Central District of California are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Court Enters $9.9M Penalty and Injunction Against Man Found to Have Caused Thousands of Unlawful Spoofed RobocallsRead the Press Release
WASHINGTON – A federal court in Montana entered a $9.9 million penalty on Tuesday against a man found responsible for causing thousands of unlawful and malicious “spoofed” robocalls to consumers across the nation. The court also imposed an injunction prohibiting any future violations of the Truth in Caller ID Act and Telephone Consumer Protection Act.
The case arose out of an investigation conducted by the Federal Communications Commission (FCC) into unlawful robocalls received by consumers in states including Florida, Georgia, Idaho, Iowa and Virginia in 2018. The calls displayed inaccurate caller IDs indicating they were from local phone numbers, inducing the recipients to answer the calls and listen to the recorded messages. Those messages included highly inflammatory and disturbing content, often directed at certain communities, that intended to offend or harm the recipients. For example, hundreds of the spoofed robocalls targeted residents of the Brooklyn, Iowa, area in the aftermath of a local woman’s murder. Similarly, more than 2,000 of the spoofed robocalls targeted residents of Charlottesville, Virginia, during the investigation and prosecution of James Alex Fields Jr. for killing one woman and injuring dozens during the “Unite the Right” rally in August 2017. Many consumers who received the calls submitted complaints to FCC and other law enforcement regarding unwanted and harassing robocalls.
FCC traced the unlawful spoofed robocalls to Scott Rhodes, a resident of Idaho and Montana, and in January 2021, FCC imposed a $9,918,000 forfeiture penalty against Rhodes. In September 2021, the Justice Department sued Rhodes in the District of Montana to recover that penalty and obtain an injunction. In October 2023, the United States moved for summary judgment, and the court subsequently entered an injunction and the full $9,918,000 forfeiture penalty against Rhodes, after concluding based on a de novo review of the evidence that Rhodes committed the violations found by FCC.
“The department is committed to protecting consumers from deceptive robocalls,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “We are very pleased by the court’s judgment, and we will continue working with the FCC and other agency partners to vigorously enforce the telemarketing laws that prohibit these practices.”
“Virtually every Montanan has been the subject of unwanted and harassing robocalls, and the person responsible for such calls usually escapes accountability,” said U.S. Attorney Jesse Laslovich for the District of Montana. “But not this time. In placing thousands of harassing and malicious spoofing calls to consumers across the country, Rhodes showed a blatant disregard to caller ID and telephone consumer protection laws designed to prevent this sort of conduct. I applaud the court’s injunction and nearly $10 million forfeiture penalty that hold Rhodes accountable. These results send the clear message that the Justice Department is determined to protect consumers.”
“When persistent and malicious robocallers break the law, it takes strong partnerships like this one to bring them to justice,” said Chairwoman Jessica Rosenworcel of the FCC. “I thank the Justice Department team, in conjunction with FCC lawyers, for vigorously pursuing this penalty. I especially want to thank FCC investigators for tracking down this robocaller and building such a strong case. Our agency will continue to relentlessly pursue these unwanted robocalls and build on our multi-faceted collaborative approach with law enforcement agencies at home, as well as the growing partnerships we’re fostering with our counterparts abroad, so that we can quickly and effectively neutralize bad actors.”
Assistant Director Patrick Runkle, Trial Attorney Michael Wadden, Trial Attorney Amanda Kelly, Investigator Giovan Aloisio and Senior Deputy Director Lisa Hsiao of the Civil Division’s Consumer Protection Branch handled the case with the assistance of Assistant U.S. Attorney Shannon Clarke for the District of Montana.
Readout of Assistant Attorney General Kristen Clarke’s Trip to AtlantaRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Atlanta on March 20 to continue the Civil Rights Division’s tour to engage with stakeholders in underserved communities and reaffirm the department’s commitment to protecting the civil rights of all Americans.
In the morning, Assistant Attorney General Clarke participated in a fireside chat with Dr. Adrienne Jones, Ph.D. at Morehouse College, part of the Atlanta University Center (AUC) Consortium, a collaboration between four historically black colleges and universities (HBCUs) in the heart of metropolitan Atlanta – Clark Atlanta University, Morehouse College, Morehouse School of Medicine and Spelman College. Assistant Attorney General Clarke spoke with AUC students about her journey to becoming the first woman and first Black woman confirmed by the Senate to be the Assistant Attorney General of the Civil Rights Division. She also discussed the Justice Department’s efforts to address some of the most pressing civil rights issues, including threats to voting rights, a rise in hate crimes, the racial wealth gaps, and encouraged students to reconsider careers in public service.
After her visit to Morehouse College, Assistant Attorney General Clarke joined a community stakeholder meeting convened with U.S. Attorney Ryan Buchanan at the U.S. Attorney’s Office for the Northern District of Georgia. During the meeting, they listened to and addressed concerns raised by local advocates from Black, Latino, Asian, Muslim, Jewish and LGBTQI+ communities.
She also met with the U.S. Attorney’s Office for the Northern District of Georgia. She thanked U.S. Attorney Buchanan and his staff for their service and commitment to protecting civil rights.
To conclude the trip, Assistant Attorney General Clarke delivered keynote remarks at a special meeting hosted by the Lawyers Club of Atlanta, a 102-year-old institution. She underscored the department’s commitment to protecting civil rights and discussed current and past efforts to combat hate crimes. She said, “We are working diligently to prosecute and prevent hate crimes, which have soared to some of their highest levels in decades. Since January 2021, the Civil Rights Division has charged more than 115 defendants in over 100 cases – a statistic that both illustrates the rising threat of hate-fueled violence and illustrates the work of our attorneys to pursue these notoriously complex cases.”
She also highlighted the recent work of the Civil Rights Division, including holding law enforcement officials accountable for misconduct, investigating unconstitutional prison conditions, protecting the right to vote, and ending modern-day redlining by banks and financial institutions.
As a part of this tour, Assistant Attorney General Clarke has traveled to underserved communities in Louisiana, Tennessee, Mississippi, Alabama, Florida, Arkansas and South Carolina to discuss the department’s efforts to protect the civil rights of all Americans.
Assistant Attorney General Clarke speaks at fireside chat at Morehouse College. Assistant Attorney General Clarke and U.S. Attorney Buchanan host a listening session with community stakeholders.Justice Department, Federal Trade Commission, Consumer Financial Protection Bureau and Department of Housing and Urban Development Jointly Issue Resource on Protections for Rental Housing Applicants and TenantsRead the Press Release
The Justice Department, Federal Trade Commission (FTC), Consumer Financial Protection Bureau (CFPB) and Department of Housing and Urban Development (HUD) jointly published today a resource for rental housing applicants and tenants about their rights under federal laws related to tenant background checks, also referred to as tenant screening reports. The Justice Department and HUD enforce the Fair Housing Act (FHA) and other civil rights statutes, and the FTC and CFPB enforce the Fair Credit Reporting Act (FCRA).
“Rental housing applicants and tenants across our country should not be denied housing opportunities because of unjust background checks and discriminatory screening policies,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Landlords and background check companies cannot use or ask for unnecessary information to deny someone housing. Today we are shining a light on the bad practices that can emerge when landlords maintain unjust screening policies, ensuring that applicants and tenants know their rights, and that housing providers and background check companies are on notice regarding their obligations under federal law.”
“Mistakes in your background check shouldn’t cost you a home or create one more hurdle to overcome as you search for affordable housing,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “This collaboration among FTC, CFPB, HUD and the Justice Department helps consumers know their rights, and what to do if landlords or background check companies break the law.”
“Tenants have rights when landlords deny housing based on tenant screening reports,” said CFPB Director Rohit Chopra. “These reports often rely on hidden data and complex algorithms and can cause serious harm to families seeking housing. Anyone who thinks they were wrongly denied housing because of a tenant screening report can file a complaint with the CFPB.”
“People seeking housing have a right to be free from discrimination, including during the tenant screening process,” said HUD Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity Demetria McCain. “HUD is excited to be a part of the release of this joint agency resource that contains important information about the Fair Housing Act's protections against discriminatory background checks. We encourage anyone who suspects they are being discriminated against to file a complaint with HUD.”
The new resource provides information about how tenant background checks work, what kinds of background information a landlord might receive from tenant background check companies, how applicants and tenants can respond if they think that information is wrong and their rights under federal laws.
It also explains that, in some instances, tenant background checks can lead to illegal discrimination, even if there is no factual error in the report. The FHA makes it illegal for tenant background check companies and housing providers to discriminate against individuals on the basis of race, national origin, color, sex, religion, disability or familial status. A landlord cannot reject an application or treat an applicant or tenant differently than other applicants or tenants because of any of these characteristics. Actions of a tenant background check company or a landlord can also be illegal if they use or encourage the use of irrelevant or unnecessary information to deny individuals housing, and this negatively affects some groups more than others – this may be discrimination even if the tenant background check company or landlord does not intend to discriminate.
The resource also explains an individual’s rights under the FCRA, including the right to request a free copy of a report from the tenant background check company if a landlord makes a negative housing decision because of something included in the report and the right to dispute errors on a report. Tenant background check companies are required to take reasonable steps to ensure the information in tenant background check reports is accurate and to investigate within 30 days when someone disputes errors in their report.
Read the joint resource here.
Individuals who believe they have been victims of housing discrimination can submit a report to the Justice Department online at www.civilrights.justice.gov. Such individuals also may contact HUD at 1-800-669-9977 or file a complaint with HUD online.
Individuals can submit a report to the FTC in English at ReportFraud.ftc.gov or in Spanish at ReporteFraude.ftc.gov. To submit a report to the FTC in other languages, call (877) 382-4357 and press 3 to speak to an interpreter in your language. Lines are open from 9 a.m. to 5 p.m. ET.
Individuals can submit a complaint to the CFPB online or call the CFPB at (855) 411-2372 | TTY/TDD: (855) 729-2372 from 8 a.m. to 8 p.m. ET, Monday through Friday (except federal holidays). Help by phone is available in more than 180 languages.
Justice Department Sues Apple for Monopolizing Smartphone MarketsRead the Press Release
The Justice Department, joined by 16 other state and district attorneys general, filed a civil antitrust lawsuit against Apple for monopolization or attempted monopolization of smartphone markets in violation of Section 2 of the Sherman Act.
The complaint, filed in the U.S. District Court for the District of New Jersey, alleges that Apple illegally maintains a monopoly over smartphones by selectively imposing contractual restrictions on, and withholding critical access points from, developers. Apple undermines apps, products, and services that would otherwise make users less reliant on the iPhone, promote interoperability, and lower costs for consumers and developers. Apple exercises its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others. Through this monopolization lawsuit, the Justice Department and state Attorneys General are seeking relief to restore competition to these vital markets on behalf of the American public.
“Consumers should not have to pay higher prices because companies violate the antitrust laws,” said Attorney General Merrick B. Garland. “We allege that Apple has maintained monopoly power in the smartphone market, not simply by staying ahead of the competition on the merits, but by violating federal antitrust law. If left unchallenged, Apple will only continue to strengthen its smartphone monopoly. The Justice Department will vigorously enforce antitrust laws that protect consumers from higher prices and fewer choices. That is the Justice Department’s legal obligation and what the American people expect and deserve.”
“No matter how powerful, no matter how prominent, no matter how popular — no company is above the law,” said Deputy Attorney General Lisa Monaco. “Through today’s action, we reaffirm our unwavering commitment to that principle.”
“When corporations engage in anticompetitive conduct, the American people and our economy suffer,” said Acting Associate Attorney General Benjamin C. Mizer. “Today’s action against Apple sends a strong signal to those seeking to box out competitors and stifle innovation — that the Justice Department is committed to using every tool available to advance economic justice and root out anticompetitive practices, wherever they arise.”
“For years, Apple responded to competitive threats by imposing a series of “Whac-A-Mole” contractual rules and restrictions that have allowed Apple to extract higher prices from consumers, impose higher fees on developers and creators, and to throttle competitive alternatives from rival technologies,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Today’s lawsuit seeks to hold Apple accountable and ensure it cannot deploy the same, unlawful playbook in other vital markets.”
As alleged in the complaint, Apple has monopoly power in the smartphone and performance smartphones markets, and it uses its control over the iPhone to engage in a broad, sustained, and illegal course of conduct. This anticompetitive behavior is designed to maintain Apple’s monopoly power while extracting as much revenue as possible. The complaint alleges that Apple’s anticompetitive course of conduct has taken several forms, many of which continue to evolve today, including:
- Blocking Innovative Super Apps. Apple has disrupted the growth of apps with broad functionality that would make it easier for consumers to switch between competing smartphone platforms.
- Suppressing Mobile Cloud Streaming Services. Apple has blocked the development of cloud-streaming apps and services that would allow consumers to enjoy high-quality video games and other cloud-based applications without having to pay for expensive smartphone hardware.
- Excluding Cross-Platform Messaging Apps. Apple has made the quality of cross-platform messaging worse, less innovative, and less secure for users so that its customers have to keep buying iPhones.
- Diminishing the Functionality of Non-Apple Smartwatches. Apple has limited the functionality of third-party smartwatches so that users who purchase the Apple Watch face substantial out-of-pocket costs if they do not keep buying iPhones.
- Limiting Third Party Digital Wallets. Apple has prevented third-party apps from offering tap-to-pay functionality, inhibiting the creation of cross-platform third-party digital wallets.
The complaint also alleges that Apple’s conduct extends beyond these examples, affecting web browsers, video communication, news subscriptions, entertainment, automotive services, advertising, location services, and more. Apple has every incentive to extend and expand its course of conduct to acquire and maintain power over next-frontier devices and technologies.
For over a century, the Department has enforced the antitrust laws against illegal monopolies, deploying the Sherman Act to unfetter markets and restore competition. As alleged in the complaint, the Department is seeking equitable relief on behalf of the American public to redress Apple’s long-running, pervasive anticompetitive conduct.
Apple Inc. is a publicly traded company incorporated in California and headquartered in Cupertino, California. In fiscal year 2023, Apple generated annual net revenues of $383 billion and net income of $97 billion. Apple’s net income exceeds any other company in the Fortune 500 and the gross domestic products of more than 100 countries.
apple_file_stamped_complaint_3.21.24.pdfFormer Honolulu Resident Pleads Guilty to Tax FraudRead the Press Release
A former resident of Honolulu pleaded guilty yesterday to conspiring to defraud the IRS by fraudulently obtaining a tax refund and then thwarting efforts to recoup it.
According to court documents and statements made in court, Sook Young Jung conspired with others to file a false 2015 individual income tax return in her name. As part of the conspiracy, Jung’s co-conspirators created a fake tax form purportedly issued by a mortgage lender to Jung, which Jung attached to her return. The form falsely reported that Jung withheld over $1.7 million in taxes. As a result of this fraudulent submission, the IRS paid Jung a refund of $1,147,036.
After filing the false tax return and submitting the fake tax form, Jung took steps to try and ensure that the IRS could not recover the fraudulently obtained refund. For example, she deposited the refund check into a newly opened bank account and immediately withdrew most of the funds in cashier’s checks. She also paid, through nominees, one of her co-conspirators $500,000 for the co-conspirator’s assistance in obtaining the fraudulent refund.
Jung is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison. She also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Clare E. Connors for the District of Hawaii made the announcement.
IRS Criminal Investigation, the Treasury Inspector General for Tax Administration and FBI are investigating the case.
Trial Attorneys Sarah Kiewlicz and Sara Henderson of the Justice Department’s Tax Division and Assistant U.S. Attorney Gregg Paris Yates for the District of Hawaii are prosecuting the case.
Florida Man and Brazilian National Indicted for Decade-Long Scheme to Defraud the IRSRead the Press Release
A federal grand jury in Miami returned an indictment today charging Dan Rotta, of Aventura, Florida, and Sergio Cernea, of Sao Paolo, Brazil, with conspiring to defraud the United States by concealing income and assets in Swiss bank accounts. The indictment also charged Rotta with tax evasion, filing a false tax return, making a false statement and failing to file Reports of Foreign Bank and Financial Accounts. Rotta was arrested on a related criminal complaint on March 8, 2024.
According to the indictment, between 1985 and 2020, Rotta hid more than $20 million in assets in at least two dozen secret Swiss accounts at five different Swiss banks, including UBS, Credit Suisse, Bank Bonhôte and Bank Julius Baer. The accounts were allegedly held in his own name, in the names of sham structures and, in one instance, a pseudonym. Over the years, Rotta allegedly earned substantial income from these assets that he did not report on his tax returns.
From 2001 through 2017, Rotta allegedly falsely represented to the banks that he was a Brazilian citizen residing in Brazil, even though he had been a naturalized citizen and resident of the U.S. since the 1970s. During those years, Rotta and a company he controlled allegedly received millions of dollars in transfers from his secret Swiss accounts.
Starting in 2008, after it was reported publicly that UBS and its bankers were under criminal investigation for helping U.S. taxpayers evade their taxes, Rotta allegedly took steps to continue concealing his offshore assets, including by closing his UBS account and moving the funds to Credit Suisse and Bank Bonhôte.
According to the indictment, in 2011, after the IRS obtained records related to one of Rotta’s Swiss accounts, Rotta nominally changed the documentation of his accounts at Credit Suisse and Bank Bonhôte to make it appear that Sergio Cernea, a Brazilian national, owned the assets in the accounts. Despite the change, Rotta allegedly continued to control the assets and transferred millions of dollars out of those accounts for his use.
Shortly after Rotta changed the account documentation, the IRS allegedly began auditing Rotta. During the audit, Rotta allegedly falsely denied that he owned the assets in the foreign financial accounts and, instead, claimed that the millions of dollars he withdrew from the accounts were non-taxable loans from Cernea and others. Rotta allegedly provided the IRS with fake promissory notes and false affidavits from Cernea and others to corroborate his claims.
The IRS allegedly did not believe Rotta and assessed millions of dollars of additional taxes as well as penalties and interest against him. According to the indictment, Rotta sought to reverse the assessments by causing the filing of a U.S. Tax Court petition that sought a redetermination of the IRS’s assessments. In that petition, Rotta, through his attorney, allegedly falsely denied having any foreign accounts and attached the fictitious loan documents. Furthermore, Cernea and another co-conspirator allegedly traveled to the United States to retell the false loan story to IRS attorneys. In 2017, after Rotta allegedly presented evidence that the purported loans had been repaid, the IRS reversed the deficiencies and agreed that Rotta owed no additional tax. Unbeknownst to the IRS, however, the funds that Rotta purportedly repaid to Cernea and others allegedly went into accounts that Rotta controlled.
According to the indictment, as part of the conspiracy, in 2016, Rotta had attorneys create trusts in the United States that Cernea funded with the assets transferred from the Swiss accounts and held for the benefit of Rotta. In fact, the funds in the trusts allegedly belonged to Rotta, and Rotta controlled the trusts.
In 2019, Rotta allegedly became aware that the IRS would receive additional account records from Switzerland that contradicted the false claims that he had previously made. To avoid criminal liability, Rotta allegedly applied to participate in the IRS’s voluntary disclosure practice. Under that practice, taxpayers who willfully do not comply with their tax and reporting obligations can make timely, accurate and complete disclosures of their conduct, which may be a way to resolve their non-compliance and limit their criminal exposure. According to the indictment, Rotta made a number of false statements in his submission, including falsely claiming the assets in the Swiss accounts mostly belonged to Cernea and that Cernea was providing Rotta with millions of dollars because Cernea had no children when, in fact, Cernea had two.
If convicted, Rotta and Cernea face a maximum penalty of five years in prison for each count of conspiracy to defraud the United States, tax evasion, failure to file a report of bank and financial accounts and making a false statement. They face a maximum penalty of three years in prison for each count of filing false tax returns and one year in prison for each count of failing to file 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 Markenzy Lapointe for the Southern District of Florida made the announcement.
The International Tax and Financial Crimes group of IRS Criminal Investigation is investigating the case.
Senior Litigation Counsels Sean Beaty and Mark Daly and Trial Attorneys Patrick Elwell and William Montague of the Justice Department’s Tax Division as well as Assistant U.S. Attorney Michael Homer for the Southern District of Florida, are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rotta Cernea Indictment 03.22.24.pdfWinston-Salem man sentenced to more than 7 years for distribution of child pornographyRead the Press Release
GREENSBORO – A Winston-Salem man, KIERRE ANTHONY CUTLER, 19, was sentenced today to 87 months in prison after pleading guilty to one count of distribution of child pornography, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
According to court records, in October 2022, the Winston-Salem Police Department (WSPD) executed a search warrant on CUTLER’s personal devices where they discovered more than 700 images of child pornography. In April 2023, acting on a tip from the National Center for Missing and Exploited Children, WSPD executed a search warrant on a Discord account associated with CUTLER and found it had been used to upload and distribute an image depicting sexual exploitation of an infant under one year of age.
United States District Court Judge Loretta C. Biggs sentenced CUTLER to an 87-month term of imprisonment followed by 15 years of supervised release. In addition, CUTLER was ordered to pay restitution to victims totaling $13,000.00 and special assessments totaling $1,100.00. He pleaded guilty to one count of distribution of child pornography on October 5, 2023.
The case was investigated by the Winston-Salem Police Department, the Federal Bureau of Investigation, and the North Carolina State Bureau of Investigation. The case was prosecuted by Assistant United States Attorney K. P. Kennedy Gates.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A copy of this press release will be posted on our website. Related court documents and information can be found on the website of the U.S. District Court for the Middle District of North Carolina or on PACER by searching for case number 1:23CR261-1.USTP Protects Vulnerable Consumer Debtors by Obtaining Injunctions and Monetary Relief Against Two Bankruptcy Petition PreparersRead the Press Release
Two bankruptcy petition preparers that lacked legal credentials yet provided legal advice and disregarded disclosure requirements were barred from providing bankruptcy-related services, thanks to enforcement actions by the Justice Department’s U.S. Trustee Program (USTP).
On January 18, the Bankruptcy Court for the District of Maryland entered an order permanently enjoining CA Enterprises, doing business as Premier Services and Premier Legal Services, from operating in the district. The order resolved a complaint filed by the U.S. Trustee’s office in Greenbelt, Maryland, and required Premier to refund $2,000 to the debtor in the case.
And on January 26, the Bankruptcy Court for the Eastern District of Virginia permanently enjoined Malynda Perez-Combs from operating in that jurisdiction. Perez-Combs – who did not defend against a complaint filed by the U.S. Trustee’s office in Norfolk, Virginia – was also fined $15,000, ordered to return $300 in fees and pay $2,000 in statutory damages to the debtor.
“Unscrupulous bankruptcy petition preparers prey on vulnerable debtors,” said Director Tara Twomey of the Executive Office for U.S. Trustees. “To protect consumer debtors, the Program stands firm in its commitment to keep fraudsters and scammers out of the bankruptcy system.”
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 their services to the debtors and to the bankruptcy court.
In the Maryland case, the debtor retained Premier and provided financial documents, believing the company would help her apply for a loan modification or other loan workout to stop a foreclosure on her home. Instead of working with the debtor’s mortgage lender, Premier emailed the debtor a completed chapter 13 bankruptcy petition and Social Security verification form and instructed her to file them with the bankruptcy court.
The debtor in the Virginia case hired Perez-Combs to prepare her bankruptcy documents. Perez-Combs recommended filing a case under chapter 7 and repeatedly provided other impermissible legal advice and engaged in the unauthorized practice of law. For example, Perez-Combs determined how the debtor’s assets and liabilities should be characterized on the bankruptcy schedules and selected exemptions that were legally inapplicable. Perez-Combs, who has repeatedly engaged in similar conduct in other cases in other jurisdictions, did not respond to or otherwise defend against the U.S. Trustee’s complaint.
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.
PRC Citizen Sentenced for Conspiring to Transport Illegal Aliens to GuamRead the Press Release
Saipan – Shawn Anderson, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announces that on March 15, 2024, Kun Gao, age 43, a citizen of the People’s Republic of China (PRC) was sentenced in the District of the Northern Mariana Islands for Conspiring to Transport Illegal Aliens, in violation of 8 U.S.C, §§ 1324 (a)(1)(A)(ii) and (v)(I). The Court ordered 30 days in prison, one year of supervised release, and a $100 mandatory assessment fee. Gao was also ordered to promptly return to the PRC after serving his sentence.
In July 2023, Gao and nine other PRC nationals conspired with four Saipan residents to transport them from Saipan to Guam using a small, motorized boat. Most of the PRC nationals had no lawful status to be in the CNMI, and none of them were authorized to go to Guam. Their boat ran out of fuel near the island of Rota, which required a dangerous sea rescue by the U.S. Coast Guard Sector Guam.
At the sentencing hearing, Chief Judge Ramona V. Manglona agreed with the government’s argument that this type of crime needs additional deterrence. The term of imprisonment imposed was therefore longer than those for past cases.
“Unlawful travel by foreign nationals from the CNMI to Guam is a recurring problem,” said U.S. Attorney Anderson. “It is an abuse of CNMI parole provisions within our federal immigration system. It also endangers the lives of those involved, in addition to government personnel who must frequently conduct rescues in adverse weather. Our sentencing recommendations will continue to emphasize deterrence and public safety.”
"We are committed to upholding the rule of law and ensuring the integrity of our borders. Today's sentencing sends a clear message that individuals who conspire to circumvent immigration laws will be held accountable for their actions,” said Special Agent in Charge John F. Tobon.
This case was investigated by Homeland Security Investigations, with assistance from United States Coast Guard Sector Guam.
Assistant United States Attorney Eric S. O’Malley from the District of the Northern Mariana Islands prosecuted the case.
Justice Department Seeks to Shut Down Las Vegas Tax Return Preparers Filing False and Fraudulent Tax Returns for CustomersRead the Press Release
The Justice Department filed two civil complaints today in the U.S. District Court for the District of Nevada against Las Vegas tax return preparers and their companies. The complaints seek to enjoin these tax return preparers and their companies from preparing and filing federal income tax returns for others.
The complaints allege that Michael Moreno and his company, Awesome Tax LLC, and Carlos Yero and his company, Travel All The World, prepared and filed thousands of federal income tax returns for customers since at least 2018. Allegedly, Moreno and Yero and their companies regularly filed returns with the IRS that fraudulently overstated the amount of refund due while simultaneously telling their customers that they would receive a smaller refund. Moreno and Yero would then allegedly collect as “bank fees” the substantial difference between these amounts. The complaints allege that the amount collected as “bank fees” ranges between $300 and $800 per return.
The complaints allege that Moreno and Yero prepared, and their companies filed, tax returns with false tax credits, fabricated business income and expenses on Form 1040 Schedule C and improper itemized deductions on Form 1040 Schedule A to improperly understate their customers’ tax liabilities and to inflate refunds. Moreno and Awesome Tax have allegedly caused a tax loss of approximately $2.74 million in 2018 and 2019, while Yero and Travel All The World allegedly caused a tax loss of $2.64 million in 2019 alone.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Attorneys from the Justice Department’s Tax Division are handling the case.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
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.
United States v. Carlos Roberto Yero et al..pdf United States v. Michel Moreno et al..pdfRhode Island Man Sentenced to Eight Years in Prison for Defrauding Investors and Tax EvasionRead the Press Release
A Rhode Island man was sentenced to eight years in prison for running a decade-long Ponzi scheme to defraud investors and to evade his taxes.
According to court documents and statements made in court, between 2008 and 2018, Thomas Huling, formerly of West Warwick, orchestrated a scheme to defraud investors by promoting several investment projects, including high-yielding bond trading platforms, a car emissions reduction technology and an online advertising and marketing company. He solicited funds for these investments by representing, among other things, that the investments would achieve quick and substantial returns with little or no risk.
In truth, and contrary to his promises, Huling diverted investor money to fund a lavish lifestyle that included high-end vehicles, membership and golf fees at multiple country clubs, gambling, clothing, restaurants, vacations and travel, as well as improvements to his residence. He created and used multiple shell companies, opened over 50 bank accounts and engaged in convoluted financial transactions between accounts to conceal his personal use of the funds. When concerned investors contacted Huling about the status of their investments, Huling lulled them with false excuses and promises, and at other times avoided their calls. To appease certain early investors, Huling used money raised from new investors to pay them off.
While Huling was defrauding his investors, he was also evading his taxes. Between 2009 and April 2018, Huling reported no taxable income, paid no income taxes and for certain years filed fraudulent individual and corporate income tax returns. To hide his income, Huling used nominee bank accounts and paid for personal expenses using cash and corporate debit cards. He also falsified the books and records of his companies by recording sham loans, titled personal assets in the name of shell companies and made false statements to IRS special agents.
In addition to his prison sentence, U.S. District Judge Mary McElroy for the District of Rhode Island ordered Huling to serve three years of supervised release and to pay restitution to the United States and victims of the fraud in an amount to be determined later.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Zachary A. Cunha for the District of Rhode Island made the announcement.
IRS Criminal Investigation and the FBI investigated the case.
Acting Section Chief John Kane of the Justice Department’s Tax Division and Assistant U.S. Attorney Sandra Hebert for the District of Rhode Island prosecuted the case.
Oklahoma Man Convicted of Murder-For-Hire of St. Louis SchoolteacherRead the Press Release
ST. LOUIS – A jury in U.S. District Court in St. Louis on March 19, 2024 found Phillip J. Cutler of Muskogee, Oklahoma guilty of conspiring to murder-for-hire and the murder-for-hire of St. Louis Public School teacher Jocelyn Peters, and her unborn child, Micah Leigh, in 2016.
Prosecutors proved to jurors that Cutler was enlisted by his longtime friend, Cornelius M. Green, to murder Green’s 30-year-old girlfriend, Jocelyn Peters, and her unborn child.
Green, 42, of St. Louis, pleaded guilty on Feb. 28, 2024 to the same charges. He admitted as part of his plea hiring his longtime friend, Cutler, to kill Peters. Peters was 31 weeks pregnant with Green’s child, which she had named Micah Leigh. Green was also involved in sexual relationships with several other women.
Green admitted during his plea that he used cash stolen from Carr Lane Middle School, where he was principal, to pay Cutler. On Feb. 28, 2016, Green texted Cutler and asked him to come to St. Louis during the week of March 20, 2016. Cutler asked if Green would be sending “the package,” and on March 7, Green sent Cutler a UPS package containing $2,500 cash.
On March 21, Cutler arrived in St. Louis via Greyhound bus, staying with Green’s sister. Green took a train trip to Chicago to establish his alibi for the murder, giving Cutler the keys to his Kia Optima and Peters’ apartment.
On March 24, Cutler drove Green’s car to Peters’ apartment in the 4200 block of West Pine in St. Louis, let himself in using Green’s keys, and shot Peters in the eye using a potato as a silencer. During his testimony, Cutler admitted seeing the 1992 film South Central, during which a character similarly used a potato as a silencer. Peters was working on baby shower invitations at the time she was killed.
At 6:14 a.m. the morning following the murder, Cutler confirmed to Green that Jocelyn and the baby had been killed. Following their conversation, Green bought his return train ticket, and Cutler then went to North River Front Park to dispose of evidence.
Upon arriving back in St. Louis, Green retrieved his car from Cutler and went directly to Peters’ apartment and called 911 to report her death. He repeatedly made false statements to law enforcement and others attempting to evade responsibility for his ordering of the murders and pretending he had no knowledge of the circumstances leading to the deaths. Cutler was detained for questioning that same night after attempting to retrieve the Kia Optima from the crime scene. When told he was being detained, Cutler actually ate two pieces of paper from a notebook in his pocket.
Green is scheduled to be sentenced June 5 and faces a sentence of life in prison. As part of the plea, the St. Louis Circuit Attorney’s Office has agreed to dismiss their case against Green for the murders if he is sentenced to life in federal prison.
Cutler is scheduled to be sentenced June 18. He faces life in prison on each charge.
The St. Louis Metropolitan Police Department and the FBI investigated the case, which is being prosecuted in cooperation with the St. Louis Circuit Attorney’s Office. Assistant U.S. Attorneys Tiffany Becker and Zachary Bluestone are prosecuting the case. Former SLMPD Detective Mark Biondolino was the case agent.
Maryland Man Pleads Guilty to Role in Scheme to Steal Money from U.S. Bank AccountsRead the Press Release
A Maryland man pleaded guilty today in Baltimore federal court to conspiracy to commit bank fraud.
According to court documents, Theodore Sapperstein, 66, of Pikesville, and his coconspirators unlawfully debited money from the bank accounts of unknowing U.S. victims without their authorization. Sapperstein and his coconspirators created shell companies and then falsely represented that debits against consumer-victims’ bank accounts were authorized as payment for services allegedly provided by those shell companies.
The unauthorized debits against consumer-victim accounts resulted in returned transactions and high return rates that could generate scrutiny from banks. To both conceal and continue making unauthorized debits, Sapperstein and his coconspirators caused “micro debit” transactions (i.e., a large number of low-value sham transactions) to be made against other bank accounts that they controlled and/or funded, and which they knew would not result in returns. The “micro debits” were therefore used to artificially lower return rates to levels that Sapperstein and his coconspirators believed would reduce bank scrutiny and potential termination of banking services. Sapperstein helped broker payment processing for the fraud scheme, securing a payment processor who processed the unauthorized debits and the fraudulent micro debits. As part of his guilty plea, Sapperstein admitted that more than $1.5 million in loss was reasonably foreseeable to him.
“Those who knowingly participate in schemes to use personal and financial information about American consumers to steal money from their accounts will be held accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are committed to investigating and prosecuting individuals who facilitate such schemes.”
“The U.S. Postal Inspection Service (USPIS) will not tolerate schemes aimed at draining the accounts of innocent people trying to create financial stability for themselves and their families,” said Inspector in Charge Carroll N. Harris of USPIS' LA Division. “Postal Inspectors along with their law enforcement partners will tirelessly investigate these crimes, ensuring these criminals face the maximum penalties for their illegal activities.”
“We formed the Maryland Financial Intelligence Task Force to identify financial fraudsters, whose actions impact victim-account holders here in Maryland and beyond,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Our goal is to aggressively protect the financial information of public consumers.”
A sentencing hearing is scheduled for Aug. 15. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Cases against related scheme participants have previously been filed in Los Angeles, San Diego, and Las Vegas. In May 2023, a grand jury in Los Angeles returned an indictment in United States v. Courdy, et al. charging 14 defendants with RICO conspiracy and other charges in the Central District of California. The indictment alleges that the defendants and associates debited consumer-victims’ bank accounts without authorization and used shell entities and “micro debits” to conceal the activity from banks. The “Information for Victims in Large Cases” section on the Consumer Protection Branch’s website contains additional information on United States v. Courdy, et al. In December 2023, scheme participant Luis Ramirez pleaded guilty to conspiracy to commit access device fraud in federal court in San Diego, and is scheduled to be sentenced on April 22. A related scheme participant, Harold Sobel, pleaded guilty to bank fraud conspiracy in federal court in Las Vegas. In December 2022, Sobel was sentenced to 42 months in prison.
The U.S. Postal Inspection Service is investigating the case.
Trial Attorneys Wei Xiang, Meredith Healy and Amy Kaplan of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Darryl Tarver for the District of Maryland are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Central District of California.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Consumer 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 fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Justice Department Secures Agreement with North Carolina Printing Company to Resolve Claims of Immigration-related DiscriminationRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with Printful Inc. (Printful), an on-demand printing and fulfillment company headquartered in Charlotte, North Carolina. The agreement resolves the department’s determination that Printful violated the Immigration and Nationality Act (INA) by discriminating against a worker based on her citizenship status when checking her permission to work, and by having a discriminatory policy requiring non-U.S. citizens to present specific documents to prove their permission to work.
“Companies cannot reject workers’ valid documents or require specific or unnecessary documents based on citizenship status when checking their permission to work,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold accountable employers who run afoul of our nation’s civil rights laws.”
The department’s investigations determined that Printful rejected a lawful permanent resident’s valid driver’s license and Social Security card, even though those documents were sufficient to prove her permission to work, and required her to present her Permanent Resident Card (sometimes referred to as a “green card”). The Civil Rights Division’s Immigrant and Employee Rights Section (IER) also concluded that Printful maintained at least a year-long policy, starting from July 2022 to July 2023, of requiring non-U.S. citizens to present specific documents to prove their permission to work while allowing U.S. citizens a choice of documents. Federal law allows all workers to choose which valid, legally acceptable documentation to present to demonstrate their identity and permission to work, regardless of citizenship, immigration status or national origin. Employers cannot demand more documents than are necessary or specify documentation they prefer to see as part of this process.
Under the terms of the settlement, Printful will pay civil penalties to the United States and backpay to the worker who filed a complaint. The agreement also requires Printful to train its personnel on the INA’s anti-discrimination requirements, revise its employment policies and be subject to departmental monitoring and reporting requirements.
IER is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
Find more information on how employers can avoid discrimination when verifying someone’s permission to work on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected] or visit IER’s English and Spanish websites. Sign up for email updates from IER.
Justice Department Hosts Forum and Sends Letter to Local Officials to Reinforce Federal Civil Rights Protections for Religious Land UseRead the Press Release
The Justice Department’s Civil Rights Division hosted a forum in Orange County, California, today with the U.S. Attorney’s Office for the Central District of California on the department’s continued efforts to combat religious discrimination and promote religious liberty through enforcement of the Religious Land Use and Institutionalized Persons Act (RLUIPA). RLUIPA is a federal law that protects people and religious institutions from discriminatory and overly burdensome land use regulations. The division also issued a letter to state, county and municipal leaders throughout the country to remind them of their obligations under RLUIPA.
During the forum, Deputy Assistant Attorney General Johnathan Smith of the Justice Department’s Civil Rights Division and U.S. Attorney Martin Estrada for the Central District of California discussed the continued importance of RLUIPA and highlighted the need to ensure that the public is aware of the critical protections provided by the law. They heard from members of different religious communities, land use officials and local attorneys about challenges involving religious land use in Southern California.
Today’s forum, held at the Fowler School of Law at Chapman University, is the second in a series of nationwide outreach events designed to ensure that communities understand RLUIPA’s legal protections and are of the department’s enforcement of the law. The department held the first outreach event of the series in October in New Jersey.
“At this time when many faith communities are experiencing antisemitism, Islamophobia or other forms of religious discrimination, the department is actively working to guarantee that all faith communities are free to worship and engage in religious exercise,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Religious Land Use and Institutionalized Persons Act is an important federal law in the Justice Department’s efforts to combat religious discrimination. Our letter aims to ensure that state and local governments around the country are aware of and understand their obligations under the law.”
“Today’s unprecedented gathering brought together local faith leaders, land use officials, lawyers and students to learn and discuss how federal laws such as RLUIPA protect the free exercise of religion,” said U.S. Attorney Martin Estrada for the Central District of California. “My office and the entire Justice Department is committed to protect religious institutions from unduly burdensome or discriminatory land use regulations. Over the past year, the civil rights attorneys in my office have worked closely with local religious organizations such as Micah’s Way and the Catholic Charities of Orange County to ensure that zoning officials do not run afoul of the RLUIPA statute.”
The Civil Rights Division’s letter to officials outlines RLUIPA’s land use provisions and emphasizes the protections they afford to religious institutions and assemblies. The letter, which describes documents and resources available from the Justice Department to help local governments comply with RLUIPA, was prompted by a concern, based on the department’s enforcement and outreach work, that many government officials are insufficiently familiar with law’s requirements.
RLUIPA was passed unanimously by Congress and signed into law on Sept. 22, 2000. The law contains provisions covering both religious land use and religious exercise by people who are incarcerated. Since RLUIPA’s passage, the department has opened over 155 formal investigations and filed nearly 30 lawsuits and 36 briefs related to RLUIPA’s land use provisions. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
The U.S. Attorney’s Office for the Central District of California is actively involved in enforcing RLUIPA, including recently filing a statement of interest in Micah’s Way v. City of Santa Ana, a federal lawsuit alleging that Santa Ana violated a faith-based group’s freedom to engage in protected religious exercise.
Individuals who believe they have been subjected to religious discrimination in land use or zoning decisions may file a complaint with the U.S Attorney’s Office at www.justice.gov/usao-cdca/civil-division/civil-rights-section or call the U.S. Attorney’s Office Civil Rights Section at (213) 894-2879. Individuals may also contact the Civil Rights Division Housing and Civil Enforcement Section at (833) 591-0291 or submit a complaint through the complaint portal.
El Departamento de Justicia llega a un acuerdo con una imprenta con sede en North Carolina que resuelve acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Printful Inc. (Printful), una empresa de impresión y logística a la carta con sede en Charlotte, Carolina del Norte. El acuerdo resuelve la determinación del Departamento que Printful infringió la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) cuando discriminó a un trabajador por motivos de su estatus de ciudadanía a la hora de verificar su permiso para trabajar, y al tener una política discriminatoria que requiere que los no ciudadanos de los EE. UU. presenten documentos específicos para demostrar su permiso para trabajar.
«Al verificar su permiso para trabajar, las empresas no pueden rechazar documentos válidos de los trabajadores ni tampoco requerir que entreguen documentos específicos o innecesarios, con base en su estatus de ciudadanía», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá responsabilizando a los empleadores que vulneren las leyes de derechos civiles de nuestra nación».
Las investigaciones del Departamento determinaron que Printful rechazó la licencia de conducir y la tarjeta del Seguro Social válidas de un residente permanente legal, aunque esos documentos eran suficientes para demostrar su permiso para trabajar, y le exigió que presentara su tarjeta de residente permanente (a veces denominada «tarjeta verde»). Por otra parte, la Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés), de la División de Derechos Civiles, también concluyó que Printful mantuvo una política durante al menos un año, eso es, desde julio del 2022 hasta julio del 2023, de exigir que los no ciudadanos de los EE. UU. presentasen documentos específicos para demostrar su permiso para trabajar mientras ofrecía una selección de documentos a ciudadanos de los EE. UU. Las leyes federales permiten a todos los trabajadores elegir la documentación válida y legalmente aceptable que desean presentar para demostrar su identidad y permiso para trabajar, independientemente de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen. Los empleadores no pueden exigir más documentos de los necesarios ni especificar la documentación que prefieren ver como parte de este proceso.
En virtud de los términos del acuerdo, Printful pagará sanciones civiles a los Estados Unidos y pagos retroactivos al trabajador que presentó una reclamación. El acuerdo también requiere que Printful 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 y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminar al verificar el permiso para trabajar de alguien en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea gratuito 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.
Durham man sentenced for possession of a firearmRead the Press Release
WINSTON-SALEM – A North Carolina man was sentenced today to 224 total months of imprisonment, after pleading guilty to one count of felon in possession of a firearm, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
ARMAND SAQUAN SUFYAN LEWIS-LANGSTON, age 26, of Durham, North Carolina, was sentenced by the Honorable Thomas D. Schroeder, United States District Judge in the United States District Court for the MDNC to a 200-month term of imprisonment after pleading guilty on December 11, 2023, to felon in possession of a firearm, a violation of Title 18, United States Code, Sections 922(g)(1) and 924(e). He was sentenced to an additional twenty-four-month term of imprisonment to run consecutively to the 200-month term for violating the terms of his federal supervised release.
According to court records, LEWIS-LANGSTON, then on federal supervised release after serving a 26-month term of imprisonment for felon in possession of a firearm, was found asleep in a car by a Durham Police Department (DPD) officer on October 22, 2020, with a Cugir 7.62x39 Draco assault-style pistol. He was arrested and charged by the state and bonded out of custody.
On November 17, 2020, officers with the DPD Select Enforcement Team arrested LEWIS-LANGSTON at a residence on Scheer Avenue in possession of a Kel-Tec Sub2000 9mm foldable rifle. This firearm was forensically linked to the shooting of an off-duty Durham County Sheriff’s Office deputy that occurred on November 14, 2020. Specifically, a forensic firearms examiner with DPD microscopically compared 9mm cartridge casings recovered from the November 14, 2020, shooting of the deputy with a cartridge casing test fired from the Kel-Tec Sub2000 9mm foldable rifle and determined that, based on similar class characteristics and sufficient agreement of individual characteristics, the 9mm cartridge casings recovered from the scene on November 14, 2020, were fired from the Kel-Tec Sub2000 9mm foldable rifle.
At the time of these offenses, LEWIS-LANGSTON had been previously convicted of multiple felonies. In connection with these offenses, LEWIS-LANGSTON was sentenced to multiple terms of imprisonment exceeding one year. Thus, at the time of the offenses, LEWIS-LANGSTON was legally barred from possessing a firearm due to his status as a felon.
The case was investigated by the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force (SSTF), the Durham Police Department, and the Durham County Sheriff’s Office. The lead investigator was an FBI Task Force Officer from the Durham County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney JoAnna G. McFadden.
Since 1992, the FBI’s Safe Streets Violent Crime Initiative has successfully aligned FBI Agents, state and local law enforcement investigators, and federal and state prosecutors onto SSTFs to reduce violent crime. This nationwide initiative brings resources together in a “force multiplier concept” and utilizes the expertise of each agency. SSTFs focus primarily upon street gang and drug-related violence through sustained, proactive, coordinated investigations to obtain prosecutions on violations such as racketeering, drug conspiracy, and firearms violations.
A copy of this press release will be posted on our website. Related court documents and information can be found on the website of the U.S. District Court for the Middle District of North Carolina or on PACER by searching for Case Nos. 1:23-cr-321-1 and 1:16-cr-10-1.Attorney General Merrick B. Garland Statement on Sentencings of Former Mississippi Law Enforcement Officers Who Tortured and Abused Two Black MenRead the Press Release
Two former Mississippi law enforcement officers were sentenced today for the torture and abuse of two Black men in Rankin County, Mississippi. Hunter Elward, 31, a former Rankin County Sheriff’s Office (RCSO) Deputy, was sentenced to 20 years in prison. Jeffrey Middleton, 46, a former RCSO Lieutenant, was sentenced to 17.5 years in prison.
Four more defendants, all former Mississippi law enforcement officers, will be sentenced tomorrow and Thursday. In 2023, all six defendants pleaded guilty to a criminal information charging them with multiple felony offenses, including civil rights conspiracy, deprivation of rights under color of law, discharge of a firearm during a crime of violence, conspiracy to obstruct justice, and obstruction of justice.
The Justice Department issued the following statement from Attorney General Merrick B. Garland:
“These defendants will spend 20 years and 17.5 years in prison for their heinous attack on citizens they had sworn an oath to protect,” said Attorney General Merrick B. Garland. “These defendants kicked in the door of a home where two Black men were residing, handcuffed and arrested them without probable cause, called them racial slurs, and punched, kicked, tased, and assaulted them. After one of the defendants fired his gun in the mouth of one of the victims, breaking his jaw, the defendants gathered outside to come up with a cover story as the victim lay bleeding on the floor. The Justice Department will hold accountable officers who violate constitutional rights, and in so doing, betray the public trust.”
Attorney General Merrick B. Garland Statement on FBI Quarterly Uniform Crime ReportRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the release of the FBI Quarterly Uniform Crime Report:
“In May 2021, the Justice Department launched our violent crime reduction strategy aimed at addressing the spike in violent crime that occurred during the pandemic.
“Since then, our prosecutors, agents, and grantmaking experts have worked in close partnership with police departments and communities across the country to go after the recidivists and gangs that are responsible for the greatest violence; to seize illegal guns and deadly drugs; to make critical investments in hiring more law enforcement officers; and to fund evidence-based, community violence intervention initiatives.
“We know that hard fought progress can easily slip away, and we must remain focused and vigilant. But today, we are encouraged by this data indicating a decrease in violent crime in communities across the country in 2023 compared to the prior year, including an over 13% decline in homicides. This important indicator of declining violent crime comes in the wake of other encouraging data we have seen released within the last year.
“The Justice Department will continue to remain laser-focused on working with our law enforcement and community partners to drive down violent crime. We will not rest until every community in our country is safe.”
“Rock Doc” Sentenced for Opioid Distribution ConspiracyRead the Press Release
A Tennessee nurse practitioner known locally as the “Rock Doc” was sentenced today to 20 years in prison for illegally prescribing opioids — including oxycodone and fentanyl — from his medical practice in Jackson, Tennessee.
“The self-proclaimed ‘Rock Doc’ abused the power of the prescription pad to supply his small community with hundreds of thousands of doses of highly addictive prescription opioids to obtain money, notoriety, and sexual favors,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The defendant’s conduct endangered his patients and the community as a whole. Today’s sentence reflects the seriousness of this criminal conduct and the department’s commitment to protecting communities from the scourge of illegally prescribed drugs.”
“The epidemic of opioid abuse is fueled by doctors like the defendant who are willing to over-prescribe highly addictive drugs and exploit patient pain for their own financial gain,” said U.S. Attorney Kevin Ritz for the Western District of Tennessee. “This sentence sends a strong message that healthcare professionals who prey on those who suffer from addiction are no better than street corner drug dealers — and that our office and law enforcement partners will hold them just as accountable for their crimes.”
According to court documents and evidence presented at trial, Jeffrey W. Young Jr., 49, of Jackson, used his medical practice, Preventagenix, to illegally prescribe medically unnecessary controlled substance pills to hundreds of patients, including a pregnant woman and women with whom he was having inappropriate physical relationships. Young maintained a party-type atmosphere at his clinic, and prescribed these drugs at least in part to boost his popularity on social media and promote a self-produced reality TV show pilot based on his self-identified persona, the “Rock Doc.” Young prescribed more than 100,000 doses of hydrocodone, oxycodone, and fentanyl into the community.
“Mr. Young operated a medical practice with a wanton disregard for the health and well-being of his patients who entrusted him with their medical care,” said Acting Special Agent in Charge Erek Davodowich of the Drug Enforcement Administration (DEA) Louisville Field Division. “Any healthcare provider who conducts business in such a manner that causes harm to his patients and community should expect to meet the full weight of the justice system.”
“While we applaud the dedication of the overwhelming majority of medical providers, on occasion, a provider such as Mr. Young abuses his prescribing authority to serve self-interests and contribute to patient addiction and endangerment,” said Director David Rausch of the Tennessee Bureau of Investigation (TBI). “Alongside our valuable law enforcement partners, the healthcare community, and private citizens, the TBI stands committed to identifying, investigating, and bringing to justice those who seek to misuse their authority for personal gain or notoriety and put our community at risk.”
The DEA and TBI investigated the case, with valuable assistance from the Jackson Police Department.
Assistant Chief Kate Payerle and Trial Attorney Drew Pennebaker 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 Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Readout of U.S. Justice Department Senior Officials’ Trip to London to Join Foreign Partners in Advancing Efforts to Fight FraudRead the Press Release
On March 11 and 12, Deputy Assistant Attorney General (DAAG) Arun G. Rao of the Civil Division’s Consumer Protection Branch (CPB), Deputy Assistant Attorney General Lisa H. Miller of the Criminal Division’s Fraud and Appellate Sections, CPB leadership, London-based Justice Department Attaché Ken Kohl, and the department’s London-based Fraud Prosecutorial Liaison Vanessa Sisti attended the United Kingdom (U.K.) Home Office’s first Global Fraud Summit in London. Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division, FBI Deputy Assistant Director James C. Barnacle, U.S. Department of Homeland Security (DHS) Deputy Under Secretary Kelli Ann Burriesci, and DHS Attaché to the United Kingdom Craig Symons were also part of the U.S. delegation. They were joined by over 200 leaders from government, law enforcement, regulatory agencies, and the public and private sectors, as well as experts from the banking, technology, and telecommunications industries from 11 countries, including Australia, Canada, France, Germany, Italy, Japan, New Zealand, the Republic of Korea, Singapore, and the United Kingdom, along with INTERPOL, EUROPOL, and the United Nations’ Office on Drugs and Crime.
Parsons MediaU.S. Delegation at the Global Fraud Summit.
Parsons MediaDAAG Rao participated in discussions at Global Fraud Summit.
While at the Global Fraud Summit, DAAG Rao delivered remarks on behalf of the department at two plenary ministerial sessions on March 11, facilitated by U.K. Home Secretary James Cleverly, where he spoke about the scale of the global fraud threat and the role of law enforcement, as well as how governments and institutions can collaborate to protect the public. DAAG Rao and members of the U.S. delegation also participated in a series of strategic discussions on the nature of global fraud with experts from the banking, technology, and telecommunications industries on March 12. DAAG Miller and FBI Assistant Director Nordwall co-chaired a law enforcement roundtable about the challenges that law enforcement face when investigating fraud and what law enforcement can do to ensure they remain responsive to these evolving threats.
DAAG Miller and FBI Assistant Director Nordwall co-chaired a law enforcement roundtable.
The U.S. delegation joined international ministers to endorse a framework and commit to coordinate for purposes of giving global law enforcement agencies access to enhanced intelligence to stop fraud at the source and disrupt international fraud networks.
On March 11, DAAG Rao and the CPB leadership met with Josephine Teo, the Minister for Communications and Information of Singapore, to discuss ways to work together against shared transnational fraud threats.
DAAG Rao, CPB Director Amanda Liskamm, and CPB Senior Deputy Director of Criminal Litigation A.J. Nardozzi met with Singaporean delegation.
On March 13, DAAG Miller, DAAG Rao, and the CPB leadership met with Nick Ephgrave QPM, Director of the U.K.’s Serious Fraud Office to discuss areas of future collaboration.
DAAGs Rao and Miller with Director of the U.K.’s Serious Fraud Office Nick Ephgrave QPM (center).
On March 13, DAAG Miller separately met with Mark Francis, the U.K. Financial Conduct Authority’s Director of Wholesale and Unauthorized Business Investigations. DAAG Miller also participated in a panel of enforcers and regulators at the Practising Law Institute’s 23rd Annual Institute on Securities Regulation in Europe, where she summarized the Justice Department’s approach to combating complex fraud and foreign corruption schemes, recent enforcement efforts, and emerging developments in corporate criminal enforcement policies.
Global threats such as transnational fraud and money laundering require global responses. The visit helped further partnerships with foreign governments and technology and telecommunications sectors as well as strengthen existing law enforcement collaboration to combat, prevent, and protect the public from this shared threat. We look forward to continuing our efforts to investigate and prosecute individuals and corporations that commit cross-border crimes.
CPB leads the department’s Transnational Elder Fraud Strike Force, which investigates and prosecutes individuals and organizations engaged in foreign-based fraud schemes that disproportionately affect American seniors. The strike force was created in 2019 and expanded in 2022 by Attorney General Merrick B. Garland. The strike force is comprised of attorneys and analysts from CPB and 20 U.S. Attorney’s Offices. The FBI, U.S. Postal Inspection Service, and Homeland Security Investigations provide dedicated resources for identifying the most harmful elder fraud schemes and bringing perpetrators to justice.
The department coordinates its response to transnational fraud schemes through its leadership of the Global Anti-fraud Enforcement Network (GAEN), which CPB co-chairs, an alliance of law enforcement from numerous countries around the world. GAEN members work together to identify the highest impact threats posed by international fraud schemes, evaluate strategies for disruption, and engage in law enforcement operations to dismantle illegal conduct.
Reporting from consumers about fraud and fraud attempts is critical to law enforcement efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available through the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This department’s hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. More information about the department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
The Fraud Section’s Market Integrity Unit is a national leader in prosecuting fraud and market manipulation involving cryptocurrency. Since 2019, the unit has charged cryptocurrency fraud cases involving over $2 billion in intended financial losses to investors from around the world. Prosecutors use blockchain data analytics and traditional law enforcement techniques to identify and prosecute complex cryptocurrency investment schemes; price and market manipulation involving cryptocurrencies; unregistered cryptocurrency exchanges involved in fraud schemes; and insider trading schemes affecting cryptocurrency markets. Prosecutors in the Unit frequently work in parallel with the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission and with law enforcement authorities across the globe. For further information, visit www.justice.gov/criminal/criminal-fraud/crypto-enforcement.
The UK GovernmentDAAG Rao (back row) with Ministers of 10 countries and senior officials of INTERPOL, EUROPOL, and the UN Office on Drugs and Crime.