District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Four Individuals Plead Guilty to Bid Rigging and Price Fixing in Ongoing Investigation of Oklahoma Transportation Construction ContractorsRead the Press Release
Four erosion control company owners or managers pleaded guilty to rigging bids and fixing prices as part of a conspiracy targeting a total of over $100 million in publicly funded transportation construction contracts across Oklahoma.
Stanley Mark Smith, a company owner, pleaded guilty today. Roy Henry Henrich, a former owner and officer of another company, pleaded guilty on Dec. 4, 2023. Ryan Ashley Sullivan, an owner and executive of a third company, pleaded guilty on Nov. 6, 2023. James Travis Feazel, a former operations manager of a fourth company, pleaded guilty on Sept. 26, 2023.
According to court documents filed in the U.S. District Court in Oklahoma City, Smith, Heinrich, Sullivan and Feazel conspired, along with others, to rig bids, fix prices and allocate contracts for erosion control products and services. Starting in 2017, Smith, Heinrich, Sullivan, Feazel and their co-conspirators agreed to raise prices and divvy up contracts across different areas of Oklahoma. As part of this criminal conspiracy, they often sent intentionally high-priced bids or outright refused to bid. Smith — whose company targeted over $42 million worth of contracts as part of the conspiracy — and Feazel — whose company targeted over $50 million worth of contracts — continued conspiring into April 2023. Heinrich — whose company targeted over $7 million worth of contracts — was part of the conspiracy until at least July 2021, and Sullivan was part of the conspiracy until at least April 2019.
“In Oklahoma and across the United States, Americans depend on transportation infrastructure as they travel to work, study, shop and visit family. Protecting fair and open competition for the public contracts that fund this infrastructure has never been more vital,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “These guilty pleas show that the Justice Department and its Procurement Collusion Strike Force partners are committed to investigating and prosecuting anyone who uses criminal schemes to target infrastructure contracts.”
“Protecting fair and open marketplace competition is essential to protect taxpayers and to ensure consumers can trust publicly funded contracts” said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “Corporate executives who conspire to rig bids and fix prices will be held accountable. I applaud the detailed work by the investigators and prosecutors in this case.”
“The Department of Transportation Office of Inspector General (DOT-OIG) is committed to ensuring that any activity related to price-fixing or bid-rigging involving federal taxpayer dollars for transportation projects in the State of Oklahoma, or elsewhere, is identified and thoroughly investigated,” said Special Agent in Charge Joseph Harris of DOT-OIG’s Southern Region. “Together with our law enforcement and prosecutorial colleagues, we will continue to use every tool at our disposal to hold these offenders accountable and restore equity to the bidding process.”
“Today’s announcement demonstrates the FBI’s ongoing work to eliminate bid rigging and price fixing, and to hold those conducting these activities accountable for their actions,” said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. “These criminal acts cheat American workers and consumers while harming competitive markets. The FBI is committed to continuing this important work alongside the Justice Department and our law enforcement partners.”
The defendants each pleaded guilty to a violation of Section 1 of the Sherman Act. They each face a maximum penalty of 10 years in prison and a $1 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A federal district court judge will determine any sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
The DOT-OIG and FBI Oklahoma City Field Office investigated the case.
Trial Attorneys Bethany Lipman, Matthew Grisier and Marc Hedrich of the Antitrust Division’s Washington Criminal II Section and Assistant U.S. Attorney William Farrior for the Western District of Oklahoma are prosecuting the case.
Anyone with information about this investigation or other procurement fraud schemes should notify the Procurement Collusion Strike Force (PCSF) at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.
United States Returns Alleged Murderer to MexicoRead the Press Release
On Feb. 20, the United States surrendered to Chihuahua, Mexico, state authorities Saul Luna Villa, also known as Saul Luna and Pantera, 24, a U.S. citizen of El Paso, Texas, charged with aggravated femicide for allegedly murdering his partner, A.M.B.V., in April 2023, in Ciudad Juarez, Chihuahua.
Luna Villa was escorted by the U.S. Marshals Service and surrendered to the Government of Mexico at the Lerdo Stanton International Bridge. He now faces justice in Mexico. This action reflects ongoing bilateral cooperation between the United States and Mexico to investigate crimes and bring those responsible to justice, no matter where they are.
The Justice Department’s Office of International Affairs provided significant assistance in securing Luna Villa’s return to Mexico. The Department of State’s Diplomatic Security Service, U.S. Marshals Service, Homeland Security Investigations’ (HSI) Office in Ciudad Juarez and El Paso sectors, U.S. Army Criminal Investigation Division, and Attorney General's Office of Chihuahua also provided invaluable support in this case.
Florida Tax Preparer Sentenced for False Return ConspiracyRead the Press Release
A Florida tax return preparer was sentenced today to two years in prison for conspiring to defraud the United States by preparing and filing false tax returns for clients.
According to court documents and statements made in court, from 2017 through 2020, Phedson Dore and his co-conspirator ran Empire Tax Services and filed hundreds of false returns each year. Dore typically inflated federal income tax withholdings and reported fictitious itemized deductions to generate refunds for clients to which they were not entitled. To conceal his participation in the fraud, Dore did not always list on the returns his name as the person who prepared them or include Empire’s Electronic Filing Number (EFIN). Instead, he used his employees’ names and the EFINS of other return preparation businesses. Dore and his co-conspirator caused a loss to the IRS of approximately $970,000.
In addition to the term of imprisonment, U.S. District Judge Roy B. Dalton Jr. ordered Dore to serve two years of supervised release and to pay approximately $970,976.00 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Brian Flanagan and Marissa Brodney of the Tax Division and Assistant U.S. Attorneys Courtney Richardson-Jones and Shannon Laurie for the Middle District of Florida prosecuted the case.
Family Dollar Stores LLC Pleads Guilty to Holding Consumer Products under Insanitary Conditions, Agrees to Pay $41.675 Million in Connection with Rodent-Infested WarehouseRead the Press Release
Family Dollar Stores LLC pleaded guilty today to holding food, drugs, medical devices, and cosmetics under insanitary conditions, related to a rodent infestation at the company’s West Memphis, Arkansas, distribution center.
A criminal information unsealed today in federal court in Little Rock, Arkansas, charged Family Dollar with one misdemeanor count of causing FDA-regulated products to become adulterated while being held under insanitary conditions. The company, a subsidiary of Dollar Tree Inc., entered into a plea agreement that includes a sentence of a fine and forfeiture amount totaling $41.675 million, the largest-ever monetary criminal penalty in a food safety case. The plea agreement also requires Family Dollar and Dollar Tree to meet robust corporate compliance and reporting requirements for the next three years. U.S. Magistrate Judge Jerome T. Kearney presided over the company’s guilty plea and sentencing at today’s hearing.
“When consumers go to the store, they have the right to expect that the food and drugs on the shelves have been kept in clean, uncontaminated conditions,” said Acting Associate Attorney General Benjamin C. Mizer. “When companies violate that trust and the laws designed to keep consumers safe, the public should rest assured: The Justice Department will hold those companies accountable.”
“Companies distributing and selling food, drugs, medical devices, and cosmetics must ensure that these products are being held in safe and sanitary conditions,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work closely with the FDA to investigate and prosecute those who put public health at risk by failing to meet this important obligation.”
“Consumers trust that products purchased from retail stores such as Family Dollar are safe,” said U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas. “It is incomprehensible that Family Dollar knew about the rodent and pest issues at its distribution center in Arkansas but continued to ship products that were unsafe and insanitary. Knowingly selling these types of products not only places the public’s health at risk but erodes the trust consumers have in the products they purchase. Products shipped and sold are required to be safe for consumers and the safety of Arkansans and others are extremely important to this office. Let me be clear, if you conduct business in Arkansas and allow the shipment or sale of unsafe and insanitary products, you will be held accountable.”
“U.S. consumers rely on the FDA to ensure that their food is safe and wholesome,” said Special Agent in Charge Charles L. Grinstead of the Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI) Kansas City Field Office. “When companies put themselves above the law and distribute food that has been held under extremely insanitary conditions, putting the public’s health at risk, we will see that they are brought to justice.”
In pleading guilty, the company admitted that its Arkansas distribution center shipped FDA-regulated products to more than 400 Family Dollar stores in Alabama, Missouri, Mississippi, Louisiana, Arkansas, and Tennessee. According to the plea agreement, the company began receiving reports in August 2020 of mouse and pest issues with deliveries to stores. By the end of 2020, certain stores reported receiving rodents and rodent-damaged products from the warehouse. The company admitted that by no later than January 2021, some of its employees were aware that the insanitary conditions caused FDA-regulated products held at the warehouse to become adulterated in violation of the Federal Food, Drug and Cosmetic Act (FDCA).
According to the plea agreement, the company continued to ship FDA-regulated products from the warehouse until January 2022, when an FDA inspection revealed live rodents, dead and decaying rodents, rodent feces, urine, and odors, and evidence of gnawing and nesting throughout the facility. According to the plea agreement, subsequent fumigation of the facility resulted in the reported extermination of 1,270 rodents. On Feb. 18, 2022, the company voluntarily recalled all drugs, medical devices, cosmetics, and human and animal food products sold since Jan. 1, 2021 in the 404 stores that had been serviced by the warehouse.
FDA-OCI Special Agents Chad Medaris and Daniel Allgeyer investigated the case.
Senior Litigation Counsel Patrick Runkle and Trial Attorney Alisha Crovetto of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Julie Peters and Cameron McCree for the Eastern District of Arkansas prosecuted the case.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
Precursor Chemical Broker Sentenced for Methamphetamine Importation and Money Laundering ConspiraciesRead the Press Release
A precursor chemical broker was sentenced today to 18 years and eight months in prison for methamphetamine importation and money laundering conspiracies.
According to court documents and evidence presented at trial, Javier Algredo Vazquez, 56, of Queens, New York, procured chemicals, including methylamine, for the Cartel de Jalisco Nueva Generacion (CJNG) to make controlled substances for importation into the United States. The CJNG, which is based in the State of Jalisco in Mexico, is one of the largest, most dangerous, and most prolific drug cartels in Mexico and is responsible for transporting tonnage quantities of methamphetamine, fentanyl, and other drugs into the United States. Algredo Vazquez imported over 5 million kilograms of chemicals into Mexico, including enough precursors to produce over 700 million doses of methamphetamine and over 2 billion doses of fentanyl. Algredo Vazquez also transferred millions of dollars from the United States to chemical suppliers in China and India to procure the chemicals.
24,500 kilograms of methylamine hydrochloride purchased by Algredo Vazquez and his co-conspirators that was seized at the Port of Oakland, California, on June 8, 2021.
Algredo Vazquez was convicted at trial in July 2023 of conspiracy to manufacture and distribute methamphetamine for unlawful importation into the United States, conspiracy to distribute a List I chemical to manufacture methamphetamine for unlawful importation into the United States, and conspiracy to commit money laundering.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Administrator Anne Milgram of the Drug Enforcement Administration (DEA), and Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI) made the announcement.
The DEA Los Angeles Field Division and HSI Houston investigated the case, with assistance from the U.S. Marshals Service’s Investigative Operations Division. The U.S. Indo-Pacific Command Joint Interagency Task Force West also provided support for the investigatory efforts.
Trial Attorney Kate Naseef, Acting Assistant Deputy Chief Nhan Nguyen, and Acting Deputy Chief Kaitlin Sahni of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case.
The Justice Department’s Office of International Affairs contributed significantly to the investigation. The Justice Department thanks the Mexican Attorney General’s Office for their assistance in securing the conviction.
Mississippi Tax Preparers Sentenced to Prison in False Tax Return ConspiracyRead the Press Release
A group of Mississippi tax return preparers were sentenced to prison yesterday for charges related to a conspiracy to prepare and file false tax returns for clients in Jackson, Mississippi.
Adam Earnest was sentenced to 100 months in prison, James Klish was sentenced to 50 months in prison and John Wells was sentenced to 15 months in prison. Each was also ordered by U.S. District Court Judge Daniel P. Jordan III for the Southern District of Mississippi to serve three years of supervised release and to pay restitution to the United States in an amount the court will later determine.
Two other conspirators, Christopher Rendell and Jonathan Barefoot, will be sentenced at a later date.
A federal jury convicted Earnest, Klish and Rendell of conspiring to defraud the United States by preparing false tax returns at Sunbelt Tax Service, a return preparation business that operated in Jackson. Earnest and Randell were also convicted of preparing such returns. Wells and Barefoot pleaded guilty before the trial to crimes related to preparing and filing false tax returns for clients.
According to court documents and evidence presented in court, Earnest, Randell, Klish, Barefoot and Wells worked at Sunbelt and conspired together to claim inflated tax refunds for clients by reporting false education credits, itemized deductions and business profits or losses on their clients’ tax returns. Over the years, they prepared thousands of fraudulent returns, causing over $3.5 million in tax loss to the IRS.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Patrick Elwell, Zachary Cobb and Mary Frances Richardson of the Tax Division prosecuted the case.
Medical Doctor Charged for $20.7M Health Care Fraud and Illegal Kickback SchemesRead the Press Release
A federal grand jury in New Jersey returned a superseding indictment yesterday charging a medical doctor with allegedly engaging in a health care fraud and illegal kickback scheme that involved the submission of over $20.7 million in false and fraudulent claims to Medicare for laboratory tests, including cancer genetic tests.
According to court documents, Alexander Baldonado, 68, of Queens, New York, allegedly received cash kickbacks from a laboratory representative and others in exchange for approving orders for laboratory tests billed to Medicare. As part of the scheme, Baldonado also allegedly participated in COVID-19 testing events at which he authorized COVID-19 tests as well as expensive and medically unnecessary cancer genetic tests that patients did not request, that were not used in the patient’s treatment, and for which the patients rarely received the results. Baldonado also allegedly billed Medicare for lengthy office visits that he never provided to these patients.
In addition, Baldonado allegedly engaged in a scheme to defraud Medicare and Medicaid by soliciting and receiving cash kickbacks and bribes from an owner of a durable medical equipment supply company in exchange for ordering orthotic braces that were medically unnecessary and ineligible for reimbursement.
Baldonado is charged with one count of conspiracy to commit health care fraud, six counts of health care fraud, two counts of conspiracy to defraud the United States and pay and receive health care kickbacks, and one count of soliciting health care kickbacks. If convicted, he faces a maximum penalty of 10 years in prison for each count of conspiracy to commit health care fraud, health care fraud, and soliciting health care kickbacks, and a maximum penalty of five years in prison on each count of conspiracy to defraud the United States and pay and receive health care kickbacks. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Assistant Director in Charge James Smith of the FBI New York Field Office made the announcement.
HHS-OIG and FBI are investigating the case.
Assistant Chief Rebecca Yuan and Trial Attorney Hyungjoo Han of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Superseding IndictmentJustice Department Files Statement of Interest in Lawsuit Concerning Unnecessary Law Enforcement Responses to Mental Health EmergenciesRead the Press Release
The Justice Department today filed a statement of interest in Bread for the City v. District of Columbia, a lawsuit in the U.S. District Court for the District of Columbia alleging that the District’s reliance on police officers as the default responders to mental health emergencies violates the Americans with Disabilities Act (ADA).
The statement explains that the ADA requires public entities to afford people with mental health disabilities an equal opportunity to benefit from emergency response systems. This may require dispatching a different type of response to mental health emergencies when appropriate, such as mobile crisis teams staffed with behavioral health professionals, to avoid discrimination on the basis of disability.
“Sending mobile crisis response teams to mental health emergencies when appropriate is akin to sending EMTs to a reported heart attack,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Relying on a less effective, potentially harmful response to people experiencing mental health emergencies may deprive people with mental health disabilities of an equal opportunity to benefit from a critical public service. People with mental health disabilities must have an equal opportunity to benefit from a city’s emergency response system. We are committed to fully enforcing the Americans with Disabilities Act and ensuring that people with mental health disabilities are not subjected to discrimination.”
The department’s statement of interest clarifies that Title II of the ADA applies to all services, programs and activities provided or made available by public entities, including emergency response systems. Public entities must make reasonable modifications to afford people with disabilities an equal opportunity to benefit from their programs, services and activities, including dispatching a different type of response to an emergency call when necessary to avoid discrimination based on disability. The statement also addresses other arguments made by the District of Columbia concerning the claims in this case.
The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. In May 2023, the Justice Department and Department of Health & Human Services issued guidance for Emergency Responses to People with Behavioral Health or Other Disabilities. In addition, the department recently concluded investigations in Minneapolis and Louisville, Kentucky, in which it found, in part, that the emergency response systems discriminate against people with behavioral health disabilities when responding to calls for assistance. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov/.
Additional information about the Civil Rights Division is available at www.justice.gov/crt. Assistance with this statement of interest provided by the Affirmative Civil Rights and Environmental Justice Unit in the Civil Division of the U.S. Attorney’s Office for the District of Columbia.
Fourteen Indicted in Pharmaceutical Kickback CaseRead the Press Release
Ten doctors, two pharmaceutical executives, and two business entities have been charged in a scheme to bribe doctors for prescriptions, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
The fourteen defendants were charged in a two-count indictment filed Wednesday. Medical doctors Robert Leisten, Amy Haase, Arnold Farbstein, Barry Weinstein, Eric Berkman, Jorge Cuz, Katherine McCarty, James Ellis, and David Wolf; executives Amir Mortazavi and Arvin Zeinali; and Management Service Organizations (MSOs) Trinity Champion Healthcare Partners, LLC and Hexamed Business Solutions, LLC were charged with conspiracy to violate the Travel Act by violating the Texas Commercial Bribery Statute and conspiracy to deny patients their right to honest services; and with conspiracy to commit money laundering. Medical doctor Walter Strash was charged with conspiracy to violate the Travel Act by violating the Texas Commercial Bribery Statute and conspiracy to deny patients their right to honest services.
“Our community trusts doctors to write prescriptions that serve their patients’ best interest. Kickbacks and bribes cloud physicians’ judgment,” said U.S. Attorney Leigha Simonton. “The U.S. Attorney’s Office is proud to hold accountable those who abandon the Hippocratic oath in the name of personal enrichment. We will not permit greed to taint the practice of medicine.”
“The alleged scheme in this indictment included doctors who used their positions of trust to profit personally at the expense of their patients. Health care fraud affects all sectors of the economy and costs U.S. taxpayers billions of dollars each year,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “The FBI is committed to investigating and exposing all forms of health care fraud. We will work with our law enforcement partners to hold anyone accountable that uses the health care system for their own personal benefit.”
According to the indictment, several pharmacies allegedly identified profitable prescriptions and recruited doctors to write those prescriptions. The doctors allegedly referred the prescriptions, including highly lucrative pain creams, to those pharmacies in return for a share of the profits on the prescriptions. The pharmacies allegedly tracked each prescription by doctor and illegally funneled a share of the profits back to the doctors through various marketing firms and management service organizations (MSOs), including Trinity Champion and Hexamed.
The indictment alleges that profits were generally handled as follows: Roughly 45 to 55% of net profits were retained by the pharmacy, which would pay roughly 50 to 55% of profits to a marketer called Med Left. Med Left would take a significant percentage of the payment, sometimes as much as half, and pay the rest to MSOs including Trinity Champion, Hexamed, and Eagle Ridge. Trinity Champion would funnel a small percentage to its managing partner and then pay the remaining proceeds to an entity controlled by Dr. Leisten, who would then pay Drs. Haase, Farbstein, Weinstein, Berkman, and Cuza; Hexamed and Eagle Ridge would pay a small percentage to its managing partner and then pay the remaining proceeds to Drs. McCarty, Wolf, and Ellis.
The conspirators concealed these bribes as returns on investments from physician ownership in the pharmacies. In reality, physician ownership required referrals and ownership was offered for a nominal fee – in some cases, as little as $1,000 or $1,250. Virtually 100% of pharmacy revenues were created by prescriptions written by physician owners, and profits generated from those prescriptions were shared with prescribing doctors.
According to the indictment, in May 2018, a confidential human source met with Mortazavi and Zeinali, saying he represented a group of doctors who wanted to get paid on their prescriptions. Mortazavi and Zeinali allegedly said they would only agree to pay doctors through an MSO model. The following week, the confidential source met with an MSO operator who allegedly explained how the doctors would get paid for prescriptions they sent to pharmacies.
Later that same month, Mortazavi and three of the doctors met for dinner to discuss changing their MSO model. They agreed that the MSO would receive a weekly report of scripts submitted the previous week. A report subsequently sent to an MSO tracked each doctor by the patient, number of prescriptions filled, sum of monies due from insurance companies, sum of cost to fill each prescription, and sum of net. Three weeks later, a person affiliated with one of the MSOs asked Zeinali about which new drugs doctors “can get a good reimbursement on?”
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, each defendant faces up to five years on the Travel Act conspiracy, 20 years on the Deprivation of Honest Services Wire Fraud conspiracy, and 20 years on the money laundering conspiracy charge.
Two businessmen, Andrew Hillman and Semyon Narosov, owners of Next Health, pleaded guilty to charges stemming from this scheme in October 2018. They were sentenced to 66 months (Hillman) and 76 months (Narosov) in prison for conspiracy to launder monetary instruments. The two men, in their capacities as co-owners of a surgical brokerage called Hospital Business Concepts, were also charged in the Forest Park healthcare fraud scheme; they pleaded guilty in October 2018 to conspiracy to pay and receive healthcare bribes and were later sentenced to 60 months (Hillman) and 51 months (Narosov). The owner of marketing firm Med Left, Vinson Woodlee, pleaded guilty in a separate case to conspiracy to solicit and receive kickbacks for referrals to federal health care programs.
The Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of Health & Human Services Office of Inspector General, HHS’s Medicaid Fraud Control Unit, the U.S. Department of Veterans Affairs Office of Inspector General, the U.S. Department of Labor Office of Inspector General, U.S. Food & Drug Administration Office of Criminal Investigations, the U.S. Office of Personnel Management Office of Inspector General, the U.S. Postal Inspection Service, the Drug Enforcement Administration’s Dallas Field Office, IRS Criminal Investigations, and the Defense Criminal Investigative Service (DCIS) conducted the investigation. Assistant U.S. Attorneys Chad Meacham, Donna Max, and Marty Basu are prosecuting the case.
Fourteen Charged with Federal Dog Fighting Offenses in Three-State Arrest OperationRead the Press Release
Fourteen men – residents of Georgia, Florida and Alabama – were charged for participating in a major dog fighting event that occurred in April 2022 in Donalsonville, Georgia. The U.S. District Court for the Middle District of Georgia unsealed the indictment in conjunction with arrests that occurred this week. The defendants are:
- Tamichael Elijah, 47, of Donalsonville, Georgia;
- Marvin Pulley III, 52, of Donalsonville and Jakin, Georgia;
- Brandon Baker, 41, of Panama City, Florida;
- Christopher Travis Beaumont, 37, of Panama City, Florida;
- Herman Buggs Jr., 56, of Donalsonville, Georgia;
- Terrance Davis, 45, of Pansey, Alabama;
- Timothy Freeman, 26, of Bainbridge, Georgia;
- Terelle Ganzy, 34, of Panama City, Florida;
- Gary Hopkins, 66, of Donalsonville, Georgia;
- Cornelious Johnson, 39, of Panama City, Florida;
- Rodrecus Kimble, 43, of Donalsonville, Georgia;
- Donnametric Miller, 41, of Donalsonville, Georgia;
- Willie Russell, 43, of Blakely, Georgia; and
- Fredricus White, 36, of Panama City, Florida.
According to court documents filed in this case, the defendants all converged on a property in Donalsonville, Georgia, on April 24, 2022, where they held a large-scale dog fighting event. The defendants and others brought a total of 24 dogs to fight that weekend in a series of matches. Law enforcement personnel who disrupted the event found numerous dogs inside crates in cars on the property. The participants used their cars to store dogs who had already fought, as well as those whose turns had not yet come.
As alleged in the indictment, Elijah resided on the property and acted as the host, having taken money from Pulley for hosting the dog fights. Pulley was the primary organizer. He and Russell acted as referees for matches that occurred before law enforcement arrived. Beaumont, Davis and Miller were witnessed fighting dogs at the event. Baker, Beaumont, Ganzy, Johnson and White brought three dogs from Florida to fight. Buggs, Davis, Freeman, Hopkins, Pulley and Kimble also brought dogs to the fight. Under federal law, it is illegal not only to fight dogs in a venture that affects interstate commerce, but also to possess, train, transport, deliver, sell, purchase or receive dogs for fighting purposes. Miller is also charged with the unlawful possession of a firearm subsequent to a prior felony conviction.
Authorities rescued 27 dogs from the April 2022 dog fighting event, and another 51 in conjunction with the arrests that occurred this week.
If convicted, the defendants each face a maximum penalty of five years in prison and a $250,000 fine per count of animal fighting charges. Miller also faces a maximum penalty of 10 years in prison and a $250,000 fine on the firearm charge.
Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division (ENRD) made the announcement.
The U.S. Department of Agriculture, Office of the Inspector General and detectives with the Seminole County, Georgia Sheriff’s Office are investigating the case, which remains ongoing. Detectives with the Bay County, Florda Sheriff’s Office also provided invaluable assistance.
Senior Trial Attorney Ethan Eddy of ENRD’s Environmental Crimes Section is prosecuting the case, with assistance from Criminal Chief Leah McEwen of the U.S. Attorney’s Office for the Middle District of Georgia. The U.S. Attorney’s Offices in the Northern District of Florida and Middle District of Alabama also assisted with the operation.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
False Claims Act Settlements and Judgments Exceed $2.68 Billion in Fiscal Year 2023Read the Press Release
Settlements and judgments under the False Claims Act exceeded $2.68 billion in the fiscal year ending Sept. 30, 2023, Acting Associate Attorney General Benjamin C. Mizer and Civil Division Principal Deputy Assistant Attorney General Brian M. Boynton announced today. The government and whistleblowers were party to 543 settlements and judgments, the highest number of settlements and judgments in a single year. Recoveries since 1986, when Congress substantially strengthened the civil False Claims Act, now total more than $75 billion.
“Protecting taxpayer dollars from fraud and abuse is of paramount importance to the Department of Justice – and these enforcement figures prove it,” said Acting Associate Attorney General Mizer. “The False Claims Act remains one of our most important tools for rooting out fraud, ensuring that public funds are spent properly, and safeguarding critical government programs.”
The False Claims Act imposes treble damages and penalties on those who knowingly and falsely claim money from the United States or knowingly fail to pay money owed to the United States. The False Claims Act thus serves to safeguard government programs and operations that provide access to medical care, support our military and first responders, protect American businesses and workers, help build and repair infrastructure, offer disaster and other emergency relief, and provide many other critical services and benefits.
“As the record-breaking number of recoveries reflects, those who seek to defraud the government will pay a high price,” said Principal Deputy Assistant Attorney General Boynton, head of the Justice Department's Civil Division. “The American taxpayers deserve to know that their hard-earned dollars will be used to support the important government programs and operations for which they were intended.”
Of the more than $2.68 billion in False Claims Act settlements and judgments reported by the Department of Justice this past fiscal year, over $1.8 billion related to matters that involved the health care industry, including managed care providers, hospitals, pharmacies, laboratories, long-term acute care facilities, and physicians. The amounts included in the $1.8 billion reflect recoveries arising only from federal losses, but in many of these cases, the department was instrumental in recovering additional amounts for state Medicaid programs. The recoveries in fiscal year 2023 also reflect the department’s focus on key enforcement priorities, including fraud in pandemic relief programs and alleged violations of cybersecurity requirements in government contracts and grants.
In 1986, Congress strengthened the False Claims Act by increasing incentives for whistleblowers to file lawsuits alleging false claims on behalf of the government. These whistleblower, or qui tam, actions comprise a significant percentage of the False Claims Act cases that are filed. Qui tam cases may be pursued by the government or the whistleblower, and this past year significant recoveries were obtained by both. When a qui tam action is successful, the whistleblower, also known as the relator, typically receives a portion of the recovery ranging between 15% and 30%. Whistleblowers filed 712 qui tam suits in fiscal year 2023, and this past year the Justice Department reported settlements and judgments exceeding $2.3 billion in these and earlier-filed suits.
Representative examples of False Claims Act matters pursued by the government and whistleblowers are discussed below.
HEALTH CARE FRAUD
In fiscal year 2023, health care fraud remained a leading source of False Claims Act settlements and judgments. These recoveries restore funds to federal programs such as Medicare, Medicaid, and TRICARE, the health care program for service members and their families. But just as important, enforcement of the False Claims Act deters others who might try to cheat the system for their own gain, and in many cases, also protects patients from medically unnecessary or potentially harmful actions. As in years past, the act was used to pursue matters involving a wide array of health care providers, goods, and services.
Medicare Advantage Matters
The Justice Department continued to pursue cases alleging false claims in the Medicare Advantage (or Medicare Part C) program, including allegations that organizations participating in the program knowingly submitted or caused the submission of inaccurate information or knowingly failed to correct inaccurate information about the health status of beneficiaries enrolled in their plans to increase reimbursement. As Medicare Part C is now the largest component of Medicare, both in terms of federal dollars spent and the number of beneficiaries, the work of the Justice Department in this area is of critical importance.
The Cigna Group agreed to pay $172 million to resolve allegations that it knowingly submitted and failed to withdraw inaccurate and untruthful diagnosis codes for its Medicare Advantage Plan enrollees to increase its payments from Medicare. The United States alleged that while Cigna engaged in a “chart review” program to submit additional diagnosis codes to Medicare for reimbursement, it failed to withdraw inaccurate or untruthful diagnosis codes previously submitted. The United States further alleged that Cigna paid vendors to conduct in-home assessments of enrollees, and then improperly reported diagnosis codes based solely on forms completed by those vendors without performing or ordering the diagnostic testing or imaging necessary to reliably diagnose the serious conditions reported.
Martin’s Point Health Care Inc. agreed to pay $22.5 million to resolve allegations that it knowingly submitted inaccurate diagnosis codes for its Medicare Advantage Plan enrollees that were not supported by the patients’ medical records to increase reimbursements from Medicare.
In addition to securing these settlements, the Justice Department continued to litigate a number of other cases involving the Medicare Advantage program, including actions against UnitedHealth Group, Independent Health Corporation, Elevance Health (formerly Anthem), and the Kaiser Permanente consortium.
Unnecessary Services and Substandard Care
The Justice Department also pursued and resolved matters in which providers billed federal health care programs for medically unnecessary services and substandard care. The provision of such medical services not only wastes taxpayer funds but also can expose patients to harmful procedures and treatments or cause them to forego other potentially more effective treatments.
Cornerstone Hospital Medical Center and related entities agreed to pay $21.6 million to resolve allegations that the former long-term acute care facility knowingly submitted claims for services performed by unlicensed and unauthorized students, and services that were not provided or effectively worthless.
Smart Pharmacy Inc., SP2 LLC, and Gregory Balotin agreed to pay at least $7.4 million to resolve allegations that they unnecessarily added the antipsychotic drug aripiprazole to topical compounded pain creams to boost federal reimbursement for the compounded creams and waived patient copayments. The United States alleged that the defendants crushed aripiprazole pills approved for oral use and included them in compounded creams used topically for pain treatment, while knowing that there was not an adequate clinical basis to do so.
Saratoga Center for Rehabilitation and Skilled Nursing Care, related entities, and operators and owners Leon Melohn, Alan “Ari” Schwartz, Jeffrey Vegh, and Jack Jaffa agreed to pay $7.1 million to resolve allegations that Saratoga Center delivered worthless services to residents, resulting in medication errors, unnecessary falls, and the development of pressure ulcers, and that the facility’s physical conditions deteriorated to such a degree that the facility did not consistently maintain hot water, have an adequate linen inventory, or dispose of solid waste.
Opioid Epidemic
The Justice Department has continued its pursuit of health care providers, pharmaceutical companies, pharmacies, and other entities that have played a role in contributing to and exacerbating the opioid crisis.
This year, the Justice Department filed a complaint in intervention in a whistleblower lawsuit against Rite Aid Corporation and various subsidiaries alleging that Rite Aid filled unlawful prescriptions for controlled substances in violation of the False Claims Act and the Controlled Substances Act. The United States alleges that from May 2014 through June 2019, Rite Aid knowingly filled unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not for a medically accepted indication, or were not issued in the usual course of professional practice. These unlawful prescriptions included, for example, prescriptions for the dangerous and highly abused combination of drugs known as “the trinity,” prescriptions for excessive quantities of opioids, such as oxycodone, fentanyl, and prescriptions issued by prescribers whom Rite Aid pharmacists had repeatedly identified internally as writing illegitimate prescriptions.
The Justice Department filed a proof of claim in the Chapter 11 bankruptcy action commenced by Endo Health Solutions Inc. and related corporate entities, alleging that Endo violated the FCA and caused hundreds of millions of dollars of losses to federal health care programs by causing the submission of false and fraudulent claims for prescriptions of Opana ER, a Schedule II opioid. The Department alleged that Endo used an aggressive marketing scheme that marketed Opana ER to high volume prescribers of opioids, including many prescribers who Endo knew were prescribing Opana ER or other opioids for non-medically accepted indications.
Unlawful Kickbacks
Kickbacks paid or received by health care providers undermine the integrity of federal health care programs by tainting medical decision-making, increasing health care costs, and adversely affecting competition. Federal law prohibits the willful solicitation or payment of illegal remuneration to induce the purchase of a good or service paid for by a federal health care program.
The Justice Department filed claims against multiple Modern Vascular office-based labs, affiliated companies, and its owner Yury Gampel, alleging that Gampel and the Modern Vascular defendants offered referring physicians various forms of remuneration, including the opportunity to invest in Modern Vascular office-based labs with the prospect of large monetary distributions, to induce them to refer their patients to Modern Vascular for the treatment of peripheral arterial disease. The complaint also alleged that Gampel pressured vascular surgeons and interventional radiologists employed at the Modern Vascular office-based labs to increase the number of invasive surgical procedures performed.
Cardiac Imaging Inc. and its founder, owner, and CEO Sam Kancherlapalli, agreed to pay $85.5 million to resolve allegations that, with Kancherlapalli’s oversight and approval, Cardiac Imaging paid kickbacks to cardiologists in the form of above-fair market value supervision fees, to induce those doctors to refer their patients to Cardiac Imaging for PET scans. The United States alleged that these fees substantially exceeded fair market value for the doctors’ services and included time the doctors were away from the Cardiac Imaging mobile scanning units or were not even on site.
Carter Healthcare LLC and its President Stanley Carter and Chief Operations Officer Bradley Carter agreed to pay $22.9 million to resolve allegations that Carter Healthcare improperly paid renumeration to physicians under the guise of medical directorships to induce referrals of home health patients.
The Justice Department announced two resolutions involving kickbacks relating to electronic health records (EHR). Modernizing Medicine Inc. (ModMed) agreed to pay $45.4 million to resolve allegations that it improperly solicited and received kickbacks from a lab company in exchange for recommending and arranging for ModMed’s users to utilize the lab company’s pathology lab services, conspired with the lab company to improperly donate ModMed’s EHR technology to health care providers, and paid kickbacks to its customers and other influential sources to recommend ModMed’s technology and refer potential customers to ModMed. The government further alleged that ModMed knew that its EHR technology did not always allow physician users to electronically record medical records using the required standard vocabularies, thereby causing certain of its users to submit false claims for incentive payments under the Department of Health and Human Services’ EHR Incentive Programs. NextGen Healthcare Inc. agreed to pay $31.2 million to resolve allegations that it misrepresented the capabilities of certain versions of its EHR software by using an auxiliary product that was designed only to meet government certification criteria and otherwise was lacking in critical functionality. The government further alleged that NextGen provided unlawful remuneration in the form of credits, often worth as much as $10,000, along with tickets to sporting events and entertainment, that it gave to current customers whose recommendation of NextGen’s software led to a new sale.
The Justice Department also resolved numerous matters involving laboratories and their recruiters allegedly paying doctors kickbacks disguised as legitimate payments. Five corporate entities and ten individuals paid over $2.6 million to settle allegations of kickbacks for laboratory referrals, including sham investment distributions from management service organizations (MSOs). For example, executive Peggy Borgfeld agreed to pay $325,000 and be excluded from federal healthcare programs for five years to resolve allegations that she falsely certified to Medicare that certain laboratory testing claims complied with the Anti-Kickback Statute, and Dr. Chad Shelton, Dr. Michael Boedefeld, and their medical practice agreed to pay $396,360 to settle allegations of receiving MSO kickbacks in return for their laboratory referrals. These settlements are part of an ongoing investigation that to date has resulted in settlements with 43 physicians and recoveries of over $46 million.
Other Health Care Fraud
The Justice Department continued to pursue claims arising from alleged fraud in California’s Medicaid program in connection with coverage of the previously uninsured “Adult Expansion” population under the Patient Protection and Affordable Care Act. Santa Barbara San Luis Obispo Regional Health Authority, doing business as CenCal Health, a county-organized health system, and seven providers in the system, Cottage Health System, Sansum Clinic, Community Health Centers of the Central Coast, Lompoc Valley Medical Center, Dignity Health, as well as Twin Cities Community Hospital and Sierra Vista Regional Medical Center, two subsidiaries of Tenet Healthcare Corporation, agreed to pay a combined total of $95.5 million to resolve allegations that they made or received payments that were not for “allowed medical expenses” under CenCal’s contract with the state, were pre-determined amounts that did not reflect fair market value, were duplicative of services already required to be rendered, and were unlawful gifts of public funds in violation of the state constitution.
BioTelemetry Inc. and its subsidiary CardioNet LLC, agreed to pay nearly $45 million to resolve allegations that they submitted claims for heart monitoring tests that were evaluated, in part, outside the United States, in violation of federal law. The United States further alleged that most of the offshore technicians tasked with reviewing heart test data did not have the basic qualifications to evaluate the tests in question.
Lincare Holdings Inc. agreed to pay $29.0 million to resolve allegations that it fraudulently billed Medicare Advantage plans and Medicare Part B for oxygen equipment rental payments. While many Medicare Advantage plans and Medicare Part B “capped” oxygen equipment rental payments at 36 months, Lincare admitted that it improperly billed government health care plans for oxygen equipment rental payments and co-payments after it had already received three years of payments. Lincare not only admitted to improperly billing Medicare for oxygen equipment rentals, but also admitted to improperly collecting co-pays from beneficiaries and, as part of the settlement, agreed to timely identify and refund all beneficiary co-pays that it had improperly collected, and to implement additional corrective actions in order to ensure appropriate billing going forward.
Advanced Bionics LLC, agreed to pay more than $11.0 million to resolve allegations that it misled federal health care programs regarding the radio-frequency (RF) emissions generated by some of its cochlear implant processors, which can potentially interfere with other devices that use the same RF spectrum, such as telephones, alarm and security systems, televisions, and radios. The settlement resolved allegations that the company, in submitting pre-market approval applications to the Food and Drug Administration for the company’s Neptune and Naida cochlear implant processors, made false claims regarding the methods it used in its RF emissions tests.
PROCUREMENT FRAUD
The government continued its pursuit of fraud matters involving the purchase of goods and services in connection with military and similar programs. Fraud in these programs not only squanders government funds, but also potentially puts servicemembers at risk.
In one of the largest procurement settlements ever, Booz Allen Hamilton Holding Corporation paid $377 million to resolve allegations that it improperly billed its government contracts for costs incurred in its non-governmental commercial and international contracts. The government alleged that Booz Allen improperly allocated to government contracts indirect costs associated with its non-government contracts that either had no relationship to the government contracts or were allocated to those contracts in disproportionate amounts. Further, the United States alleged that Booz Allen failed to disclose to the government the method by which it accounted for costs supporting its commercial and international businesses. As a result, Booz Allen was alleged to have obtained reimbursement from the United States for the costs of non-governmental activities that provided no benefit to the United States.
L3 Technologies Inc. agreed to pay $21.8 million to resolve allegations that in contract proposals for equipment provided to the military, L3 included the cost of certain items, such as nuts and bolts, twice.
The Boeing Company agreed to pay $8.1 million to resolve allegations that it submitted false claims and made false statements in connection with U.S. Navy contracts to manufacture the V-22 Osprey, a military aircraft. The United States alleged that Boeing failed to comply with certain contractual manufacturing specifications in fabricating composite components for the V-22, including failing to perform monthly testing on autoclaves used in the composite cure process.
PANDEMIC FRAUD
In response to the COVID-19 crisis, Congress authorized historic levels of emergency funding for federal agencies to provide direct financial assistance to individuals, businesses, and state, local, and Tribal governments. The Justice Department’s efforts in this area have included the pursuit of cases involving improper payments under the Paycheck Protection Program (PPP), which was enacted to provide loans guaranteed by the U.S. Small Business Administration (SBA) to eligible small businesses for payroll, rent, utility payments, and other business-related costs. Over the last year, the department has resolved approximately 270 False Claims Act matters, recovering over $48.3 million in connection with improper PPP loans. The department has also pursued other pandemic related fraud, including schemes by health care providers to profit from the pandemic by billing for unnecessary tests and services.
Victory Automotive Group Inc. agreed to pay more than $9 million to resolve allegations that it provided false information in support of a PPP loan forgiveness application. Although the company’s application certified it was a small business with fewer than 500 employees, Victory shared common operational control with dozens of automobile dealerships across the country, totaling more than 3,000 employees. For that reason, it was not eligible for the PPP loan it received, which was later forgiven in full.
Coyne Public Relations LLC paid $2.24 million to resolve allegations that it received a PPP loan even though it was ineligible for the loan because it was a required registrant under the Foreign Agent Registration Act.
John Seasholtz and four agricultural companies he owns agreed to pay more than $600,000 to resolve allegations that they violated the False Claims Act by improperly inflating the employee headcount on the companies’ PPP loan applications by impermissibly including non-employee contract workers who were, in fact, employed by other, unrelated entities. The companies also agreed to repay loan funds relating to the ineligible contractors, thereby relieving the SBA of liability for approximately $1.8 million in loan guarantees.
In April 2023, the Department filed two proofs of claim in the Chapter 11 bankruptcy action commenced by Kabbage Inc., doing business as KServicing, alleging violations of the FCA in connection with thousands of federally guaranteed PPP loans that were approved or processed by Kabbage. In the first proof of claim, the United States alleged that Kabbage systemically miscalculated tens of thousands of PPP loans, causing the SBA to guarantee loans in inflated amounts that exceeded what borrowers were eligible to receive under program rules. In its second proof of claim, the United States alleged Kabbage knowingly failed to implement appropriate fraud controls to comply with applicable Bank Secrecy Act/Anti-Money Laundering (BSA/AML) requirements, resulting in fraudulent claims for PPP processing fees, in addition to false claims for loan forgiveness and guarantees on fraudulent loans. The United States alleged that as a result of these schemes the government suffered losses in excess of $60 million.
The Justice Department filed claims against Patrick Britton-Harr, Provista Health LLC, and multiple laboratory companies owned by him for submitting claims for laboratory tests that were not ordered by health care providers, not medically necessary, or not performed. In its complaint, the United States alleged Britton-Harr owned and operated multiple corporate entities that allegedly sought to profit from the COVID-19 pandemic by offering COVID-19 tests to nursing homes as a way to bill Medicare for a wider array of medically unnecessary respiratory pathogen panel tests, many of which were never ordered by treating physicians.
CYBER-FRAUD INITIATIVE
The Department’s effort to combat cybersecurity threats includes the Civil Cyber-Fraud Initiative, which was announced in October 2021. The Initiative is dedicated to using the False Claims Act to promote cybersecurity compliance by government contractors and grantees by holding them accountable when they knowingly violate applicable cybersecurity requirements.
Jelly Bean Communications Design LLC and its manager paid $293,771 to resolve allegations that they failed to secure personal information on a federally funded Florida children’s health insurance website, which Jelly Bean created, hosted, and maintained. The settlement resolved allegations that, contrary to its representations and commitments, Jelly Bean did not provide secure hosting of applicants’ personal information and instead knowingly failed to properly maintain, patch, and update the software systems. The site was attacked, potentially exposing the information of 500,000 applicants.
The Justice Department also settled for over $4 million with Verizon Business Network Services LLC, which disclosed and remediated cybersecurity failures on contracts to provide trusted internet connections to the General Services Administration. In connection with the settlement, the company took a number of significant steps entitling it to credit for cooperating with the government, including providing the government with a written self-disclosure, initiating an independent investigation and compliance review of the issues, and providing the government with multiple detailed supplemental written disclosures.
OTHER FRAUD RECOVERIES
The judgments, settlements, and lawsuits announced during fiscal year 2023 involved a variety of other programs and schemes that reflect the diversity of the government’s False Claims Act enforcement efforts.
GCI Communications Corp. agreed to pay $40 million to resolve allegations that it inflated its prices and violated Federal Communications Commission competitive bidding regulations in connection with GCI’s participation in the FCC’s Rural Health Care Program. The program provides funding each year to assist rural health care providers with their telecommunications needs. The United States alleged that GCI failed to comply with FCC regulations that governed how telecommunications companies must competitively bid for these contracts and how prices must be calculated to receive subsidies, and as a result GCI received inflated subsidy payments.
International Vitamins Corporation agreed to pay $22.8 million for defrauding the United States by misclassifying more than 30 of its vitamin and nutritional supplements under the Harmonized Tariff Schedule in order to avoid paying customs duties. IVC admitted that even after it retained a consultant who informed IVC of its wrongful conduct, IVC did not implement the correct classifications for over nine months and never remitted duties that it had underpaid to the United States because of its misclassification.
Yale University and Dr. John Krystal agreed to pay $1.5 million to resolve allegations that they failed to disclose certain patents and failed to share patent royalties with the Department of Veteran Affairs (VA) for inventions made by Dr. Krystal when he worked for both institutions. Dr. Krystal was employed part time both at Yale and the VA, and those institutions agreed to promptly disclose to each other all joint inventions.
HOLDING INDIVIDUALS ACCOUNTABLE
The Justice Department continued its commitment to use the False Claims Act to deter and redress fraud by individuals as well as corporations. Such efforts deter future fraud, incentivize changes in both corporate and individual behaviors, ensure that the proper parties are held responsible, and promote the public’s confidence in our justice system. In addition to some of the recoveries identified above, the following are further examples of recoveries involving individuals.
Dr. Joel Aronowitz, Daniel Aronowitz, and Joel A. Aronowitz, M.D., a medical corporation, and other parties paid $23.9 million to resolve allegations that, among other things, they falsified the place of service for skin grafts to fraudulently maximize reimbursements and failed to properly dispose of unused portions of single-use skin graft materials and, instead, used and billed them in later procedures involving other Medicare and Medicaid beneficiaries.
Margarita Howard and her company HX5 LLC, along with affiliated joint venture HX5 Sierra LLC, paid the United States approximately $7.8 million to resolve allegations that they knowingly provided false information to the SBA relating to HX5’s and HX5 Sierra’s eligibility for federal set-aside contracts intended for small businesses owned and controlled by socially and economically disadvantaged individuals.
Dr. John Y. Chung and his practice Skin Cancer & Cosmetic Dermatology Center, P.C. agreed to pay $6.6 million to resolve allegations that they submitted false claims for Mohs dermatological procedures that were billed as if both the surgery and pathology portions of the procedures were performed by the doctor, when in fact at least one portion was often performed by other individuals.
RECOVERIES IN WHISTLEBLOWER SUITS
Of the more than $2.68 billion in settlements and judgments reported by the government in fiscal year 2023, over $2.3 billion arose from lawsuits that were filed under the qui tam provisions of the False Claims Act and pursued by either the government or whistleblowers. During the same period, the government paid out over $349 million to the individuals who exposed fraud and false claims by filing qui tam actions.
The number of lawsuits filed under the qui tam provisions of the act has grown significantly since 1986, with 712 qui tams filed this past year — an average of more than 13 new cases every week.
“We are grateful for the hard work and courage of whistleblowers who play a critical role in identifying fraud, often at substantial risk to themselves,” said Principal Deputy Assistant Attorney General Boynton. “Our efforts to ensure that public funds are spent properly continues to benefit greatly from their actions.”
In 1986, Senator Charles Grassley and Representative Howard Berman led the successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud. In 2009 and 2010, further improvements were made to the False Claims Act and its whistleblower provisions.
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Principal Deputy Assistant Attorney General Boynton also expressed appreciation for the many public servants over the past year who supported the Department’s enforcement efforts. He said, “The accomplishments announced today are a testament to the extraordinary dedication and skill of individuals across the nation who work tirelessly to protect taxpayer dollars from fraud and abuse. These individuals serve in the Fraud Section of the Civil Division, the U.S. Attorneys’ Offices, the agency Offices of Inspector General and Offices of General Counsel, and many other federal and state agencies that support this important work.”
Except where indicated, the government’s claims in the matters described above are allegations only and there has been no determination of liability. The numbers contained in this press release may differ slightly from the original press releases due to accrued interest.
FY2023 StatisticsAttorney General Merrick B. Garland Designates Jonathan Mayer to Serve as the Justice Department’s First Chief Science and Technology Advisor and Chief AI OfficerRead the Press Release
Attorney General Merrick B. Garland announced today the designation of Jonathan Mayer as the Justice Department’s first Chief Science and Technology Advisor and Chief Artificial Intelligence (AI) Officer.
“The Justice Department must keep pace with rapidly evolving scientific and technological developments in order to fulfill our mission to uphold the rule of law, keep our country safe, and protect civil rights,” said Attorney General Garland. “Jonathan’s expertise will be invaluable in ensuring that the entire Justice Department — including our law enforcement components, litigating components, grantmaking entities, and U.S. Attorneys’ Offices — is prepared for both the challenges and opportunities that new technologies present.”
As the Chief Science and Technology Advisor, Mayer will advise the Attorney General and Justice Department leadership and collaborate with components across the Department on complex issues requiring technical expertise, including on matters relating to cybersecurity, artificial intelligence, and other areas of emerging technology. Mayer will also spearhead the Department’s technological capacity-building efforts, including by advising on recruiting technical talent to ensure the Department has the expertise and is equipped to meet the challenges ahead.
Mayer will serve in the Justice Department’s Office of Legal Policy, which is developing a team of technical and policy experts in technology-related areas important to the Department’s responsibilities, including cybersecurity and AI. This team will advise leadership, as well as collaborate and coordinate with components across the Department and with federal partners on cutting-edge technological issues.
Additionally, in accordance with the President’s Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence, Attorney General Garland designated Mayer as the Justice Department’s Chief AI Officer. In this role, he will work on intra-departmental and cross-agency efforts on AI and adjacent issues. He will also lead the Justice Department’s newly established Emerging Technology Board, which coordinates and governs AI and other emerging technologies across the Department.
Mayer is an assistant professor at Princeton University’s Department of Computer Science and School of Public and International Affairs. His research has focused on the intersection of technology, policy, and law with an emphasis in criminal procedure, national security, and consumer protection. Mayer holds a Ph.D. in computer science from Stanford University and a J.D. from Stanford Law School.
The mission of the Office of Legal Policy is to develop and implement the Justice Department’s significant policy initiatives, handle special projects that implicate the interests of multiple Department components, coordinate with other interested Department components and other Executive Branch agencies, and serve as the primary policy advisor to the Attorney General and the Deputy Attorney General.
Statement from Attorney General Merrick B. Garland on the Extradition of Polad Omarov from Czechia to the United StatesRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the extradition of Polad Omarov from Czechia to the United States:
“Last year, I announced charges against three defendants for their roles in a conspiracy to murder a U.S. citizen who has long been targeted by the Government of Iran. At the time of the announcement, two of the defendants were in U.S. custody, and we said that the long arm of the law would find and bring to justice those who seek to threaten, silence, or harm American citizens. Today, we have done just that. The third defendant, Polad Omarov, was extradited to the United States to face charges for attempting to murder on U.S. soil, a journalist, author, and human rights activist who is a U.S. citizen of Iranian origin.
“We are grateful to our Czech government counterparts for this extradition.
“The Department of Justice will not tolerate attempts by an authoritarian regime to undermine the rights to which every American citizen is entitled.”
Justice Department Sues to Shut Down Florida Return PreparerRead the Press Release
The Justice Department filed a civil injunction suit to permanently bar Julius T. Price and his tax return preparation business, Price’s Accounting Firm Inc., from preparing federal income tax returns for others.
The complaint, filed in the U.S. District Court for the Middle District of Florida, alleges that Price prepared thousands of federal income tax returns from 2018 through 2023 that understate his customers’ tax liabilities and overstate the refunds to which they were entitled through a variety of schemes. The complaint describes how Price knowingly made up businesses on returns he prepared to generate bogus losses, included fraudulent claims for the Earned Income Tax Credit (EITC), claimed fictitious deductions and credits for tuition and fees and fabricated itemized deductions for medical expenses, mortgage interest and gifts to charity. According to the complaint, Price’s pattern of fraudulently understating his customers’ tax liabilities and overstating their refunds has resulted in the loss of significant federal tax revenue, estimated to exceed $1.5 million.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Price Complaint.pdfFormer North Dakota Tax Preparer Pleads Guilty to Preparing False Returns for ClientsRead the Press Release
A former North Dakota man pleaded guilty today to five counts of preparing false tax returns for clients.
According to court documents and statements made in court, Joseph Korha, currently of Minneapolis, worked as a tax return preparer for a business located in Phoenix, Arizona. In 2019, Korha prepared and submitted more than 100 fraudulent returns for clients, many of whom resided in the Fargo area. Korha claimed false tax credits and fictitious business profits and losses on these returns, which inflated his clients’ tax refunds. In total, Korha caused a tax loss to the IRS of approximately $294,000.
Korha is scheduled to be sentenced on June 3. He faces a maximum penalty of three years in prison for each count of filing a false tax return. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Mac Schneider for the District of North Dakota made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Dominick Giovanniello of the Justice Department’s Tax Division and Assistant U.S. Attorney Megan Healy for the District of North Dakota are prosecuting the case.
Co-Owner of Media Brokerage Firm Sentenced for Filing False Tax ReturnsRead the Press Release
A former Maryland woman was sentenced today to 15 months in prison for filing a false tax return.
According to court documents and statements made in court, Susan K. Patrick, now a resident of Cody, Wyoming, co-owned a media brokerage firm with her husband and hired an accounting firm to prepare business and personal tax returns for 2012 through 2014. Despite receiving the completed and accurate tax returns from the accounting firm, Patrick did not file them with the IRS. After the IRS contacted Patrick and requested that she file the unfiled returns, Patrick lied to the IRS, claiming that her accounting firm had timely filed the returns and that she would provide copies of those returns.
Patrick, however, did not provide copies of the accurate returns that had been prepared by her accounting firm. Instead, Patrick doctored the business returns, removing $10 million in gross receipts received by her brokerage firm, and altered the personal returns by removing over $9.5 million in related income that she and her husband had earned from 2012 through 2014. Patrick also falsely backdated her signature on each tax return to make it appear as if the returns had been timely signed and mailed these false documents to the IRS, hoping to evade paying the full amount of taxes she owed.
In addition, Patrick did not timely file business and individual returns for 2015, which she had also hired the accounting firm to prepare, nor did she pay the tax due and owing for the individual return.
In total, Patrick sought to evade more than $2.5 million in taxes.
In addition to the term of imprisonment, U.S. District Judge George L. Russell III for the District of Maryland ordered Patrick to serve one year of supervised release and to pay approximately $3,843,922 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS Criminal Investigation investigated the case.
Assistant Chief Thomas F. Koelbl and Trial Attorney Matthew L. Cofer of the Tax Division prosecuted the case.
Readout of Deputy Attorney General Lisa Monaco’s Participation in the 2024 Munich Security ConferenceRead the Press Release
Deputy Attorney General (AG) Lisa Monaco traveled to Munich this week to participate in the 60th annual Munich Security Conference (MSC), which brings together leaders from around the world to confront current and emerging threats to our collective, global security.
The Deputy AG delivered the closing keynote at the Munich Cyber Security Conference, where she highlighted the continuing successes of the Justice Department’s proactive cyber strategy that prioritizes near-term disruptions and victim protection, while tackling the broader ecosystem that supports cyber criminals, including the abuse of crypto-currencies and disruptive technologies. Emphasizing the Department’s commitment to this strategy, she said: “You’re going to continue to see that same tempo of prevention-focused, disruption-focused, victim-centered action, and you're going to see it at the same pace – so stay tuned.”
During the MSC, the Deputy AG met with law enforcement and intelligence counterparts, as well as international thought leaders, to further discuss the warnings she issued in London about the risks posed to global elections this year by nation-state actors’ misuse of disruptive technology — specifically, artificial intelligence (AI). Referencing the work of the Disruptive Technology Strike Force, which she launched one year ago to strike back against adversaries trying to steal America’s most advanced technology, she again described AI as the “ultimate disruptive technology” and reiterated her announcement at Oxford University earlier this week that going forward, whenever appropriate, the Justice Department will seek stiffer prison sentences for criminal offenses made significantly more dangerous by the misuse of AI.
Joined at the MSC by Secretary General Tõnis Saar of the Estonian Ministry of Justice, the Deputy Attorney General announced a first-of-its-kind international sharing agreement between the United States and Estonia that will transfer to Ukraine nearly $500,000 in funds confiscated in connection with an illicit Russian procurement network. Those funds will be used to support the people of Ukraine, as they continue to bravely defend themselves against Russia’s unprovoked and illegal invasion. In signing the agreement, the Deputy AG emphasized that the Justice Department “will continue pursuing creative solutions to ensure the Ukrainian people can respond and rebuild. Dollar by dollar. House by house. Town by town.”
While at the MSC, the Deputy AG also held bilateral meetings with foreign leaders and international law enforcement counterparts, including Prime Minister Mohammed Shia’ Sabbar Al-Sudani of Iraq, President Bernardo Arévalo of Guatemala, European Commissioner for Home Affairs Ylva Johansson, Foreign Minister Margus Tsahkna of Estonia, and Secretary General of Interpol Jurgen Stock. In all of her engagements, the Deputy AG reiterated the importance of international partnerships in combating transnational threats, including malign state interference, terrorism, narcotics trafficking, and human smuggling.
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MSC MSC MSCU.S. Citizen Charged with Providing Material Support to Isis and Receiving Military-Type Training at Isis Fighter CampRead the Press Release
A complaint was unsealed today charging Harafa Hussein Abdi, 41, of Minneapolis, with providing and conspiring to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS) and receiving and conspiring to receive military-type training from ISIS. Abdi, a U.S. citizen, was recently taken into custody overseas and was transported to the United States yesterday. Abdi will be presented before U.S. Magistrate Judge Valerie Figueredo in Manhattan federal court later today.
“As stated in the complaint, Mr. Abdi left his country to join ISIS, trained as a fighter and actively aided the group’s propaganda efforts to spread its vile ideology,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “There is no higher priority for the National Security Division than to protect Americans from terrorist organizations and we will work tirelessly to find and hold accountable those who would join these groups to do our people harm wherever they may be.”
“As alleged, Harafa Hussein Abdi, a citizen of this country, traveled from Minnesota to join a group of ISIS fighters in Somalia,” said U.S. Attorney Damian Williams for the Southern District of New York. “While training with ISIS fighters in Somalia, Abdi allegedly carried an AK-47, threatened to attack civilians in New York City, and encouraged others to carry out such attacks. Our law enforcement partners have relentlessly pursued this investigation to ensure the disruption of Abdi’s alleged plans to wage terror on our shores and bring Abdi to an American court to face justice. No matter how long it takes, this office is steadfast in its commitment to investigate, disrupt and prosecute terrorist threats against Americans.”
“Abdi allegedly trained in an ISIS camp, encouraged others to fight on behalf of ISIS, and sent social media messages about committing violent acts in New York City,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “The FBI works tirelessly to protect the American people against acts of terrorism and will hold accountable all those who break our laws and endanger our citizens. We will continue to work with our law enforcement partners both here and overseas to uncover and disrupt terrorist activity.”
As alleged in the complaint, Abdi, moved from Minnesota to Somalia in 2015. Once there, he joined a group of ISIS fighters at an ISIS training camp in the Puntland region of Somalia. During his time with the group, Abdi regularly carried an AK-47 assault rifle and received training on how to use it. In addition, Abdi worked in the ISIS group’s “media” wing, where he filmed footage for distribution by a pro-ISIS media outlet.
In social media communications during his time at the ISIS camp, Abdi described how he had left the United States and joined the “Islamic state.” Abdi also stated that he had made “hijra,” an Arabic term used by ISIS supporters to refer to traveling overseas to join ISIS and engage in jihad. Abdi also sent a photograph of himself carrying an AK-47 assault rifle, as depicted below:
In or about January 2017, Abdi sent an audio clip of rap lyrics in which he expressed support for ISIS and described multiple acts of violence, including shooting and bombing individuals in New York City. Specifically, Abdi stated, “hollow tips put a hole in your Catholic vest, and chop his head off let it rest on his Catholic chest.” Abdi further stated, “We going to carry on jihad”; “Fly through America on our way to shoot New York up. They trying to shut this thing. We ain’t going. We going to come blow New York up.” Abdi sent the audio clip to at least 20 other social media users and included messages with the audio clip, such as “Fighting back the kuffar who’s at war with Muslims if [that] is not islam then I don’t know wats Islam.”
Abdi left the ISIS camp in 2017 after his relationship with the ISIS group’s leadership deteriorated. After being jailed by the group, Abdi escaped and traveled to East Africa, where he was arrested by law enforcement authorities. In subsequent Mirandized interviews with FBI personnel, Abdi admitted that he had joined the training camp, which was affiliated with a known ISIS leader in Somalia. Abdi also identified himself in an ISIS propaganda video that he helped to film at the training camp in which Abdi carried an AK-47 assault rifle, promoted ISIS and urged others to join and fight on its behalf. In the video, Abdi said, “We thank almighty God for making us His soldiers and chose us to be among the Khilafa troops,” and “So do not stay behind, brother, and get on this caravan…. Those who believe fight in the cause of Allah, and those who reject Faith fight in the cause of Evil.” Abdi also admitted that he was trained on and regularly carried an AK-47 assault rifle and practiced shooting the AK-47 in the Somali wilderness outside the camp.
Abdi is charged with (i) conspiring to provide material support to a designated foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) providing material support to a designated foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (iii) conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum penalty of five years in prison; and (iv) receiving military-type training from a designated foreign terrorist organization, which carries a maximum penalty of 10 years in prison, a fine or both.
The FBI’s New York Field Office’s Joint Terrorism Task Force investigated the case. The National Security Division’s Counterterrorism Section, Justice’s Department’s Office of International Affairs, FBI’s Counterterrorism Division, the FBI’s International Operations Division and the Department of Homeland Security, U.S. Customs and Border Protection provided assistance.
Assistant U.S. Attorney Nicholas S. Bradley for the Southern District of New York is prosecuting the case, with assistance from Trial Attorney Kevin Nunnally of the National Security Division’s Counterterrorism Section.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Readout of Civil Rights Division’s Quarterly LGBTQI+ Community Stakeholder MeetingRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and the division’s LGBTQI+ working group convened a quarterly meeting yesterday with LGBTQI+ community stakeholders.
Department leadership, including representatives from the Civil Rights Division, FBI, Community Relations Service, Office of Justice Programs and Office on Violence Against Women heard from attending organizations on an array of topics. Those topics included hate crimes targeting the LGBTQI+ community, threats of violence against LGBTQI+ organizations and healthcare providers serving LGBTQI+ patients; discriminatory legislation targeting the LGBTQI+ community; protections for LGBTQI+ parents in the foster care and adoption process; and discrimination faced by both intersex individuals and individuals living with HIV. Representatives from other federal government agencies were also in attendance, including the Equal Employment Opportunity Commission and the Departments of Health and Human Services, Education, Housing and Urban Development, Labor, Homeland Security, Defense and Veterans Affairs.
This week’s meeting reinforces the Justice Department’s commitment to taking an all-of-department approach to protecting LGBTQI+ rights, including by engaging with organizations and stakeholders on issues affecting the LGBTQI+ community. The department’s recent work on LGBTQI+ rights issues includes a statement of interest challenging North Carolina’s bans on gender-affirming health care for transgender minors and an amicus brief in support of transgender individuals who are seeking medical treatment for gender dysphoria that is excluded from Medicaid coverage by a Florida administrative rule and state statute.
The department has also prosecuted hate crimes based on LGBTQI+ status or affiliation with the LGBTQI+ community, addressed discrimination based on transgender status in employer-provided health insurance coverage, affirmed that correctional institutions cannot deny medically appropriate care for people with gender dysphoria, took action to combat the criminalization of HIV status, and continued to educate the public about threats facing the LGBTQI+ community, including by hosting another virtual, nationwide community meeting outlining practical steps for protecting LGBTQI+ communities from hate-motivated attacks and threats of violence. These and other efforts can be found on the Civil Rights Division’s LGBTQI+ working group’s website.
Assistant Attorney General Clarke and the division's LGBTQI+ working group meet with LGBTQI+ community stakeholders.FACT SHEET: Disruptive Technology Strike Force Efforts in First Year to Prevent Sensitive Technology from Being Acquired by Authoritarian Regimes and Hostile Nation-StatesRead the Press Release
One year ago, on February 16, 2023, the Departments of Justice and Commerce, alongside their partners at the Federal Bureau of Investigation and Homeland Security Investigations, launched the Disruptive Technology Strike Force to fiercely protect advanced technology from being unlawfully acquired by foreign adversaries. Together, the agencies that comprise the Strike Force have taken an all-tools approach to aggressively pursue enforcement actions against illegal procurement networks and prevent nation-state actors from illicitly acquiring our most sensitive technology.
In the twelve months since its formation, the Strike Force has successfully:
Charged 14 cases involving alleged sanctions and export control violations, smuggling conspiracies, and other offenses related to the unlawful transfer of sensitive information, goods, and military-grade technology to Russia, China, or Iran.
- Seven cases charged defendants with sending or attempting to send semiconductors, microelectronics, or other technologies to Russia in violation of U.S. law.
- In January 2024, Brooklyn- and Los Angeles-based businessman Ilya Kahn was arrested for allegedly running a years-long scheme to unlawfully export hundreds of thousands of semiconductors to a sanctioned Russian business, using networks of businesses in the China and other transshipment points to evade export controls.
- In October 2023, Brooklyn-based Salimdzhon Nasriddinov, a dual Russian and Tajik national, and Canadian nationals Nikolay Goltsev and Kristina Puzyreva were arrested for running a scheme to source, purchase, and ship millions of dollars’ worth of dual-use electronics from U.S. manufacturers to sanctioned end-users in Russia, including components used in guided missile systems and unmanned aerial vehicles (UAVs).
- In October 2023, Brooklyn resident Nikolay Grigorev was arrested and Russian nationals Nikita Arkhipov and Artem Oloviannikov were charged with running a scheme to procure dual-use electronic components, including semiconductors, for companies affiliated with the Russian military.
- In September 2023, Russian citizen Maxim Marchenko was charged with using shell companies in Hong Kong to smuggle large quantities of microelectronics with military applications to end users in Russia.
- In August 2023, dual Russian-German citizen Arthur Petrov was arrested in Cyprus for his involvement in a scheme to procure U.S.-sourced microelectronics on behalf of a Russia-based supplier of critical electronic components for manufacturers supplying weaponry and other equipment to the Russian military.
- In May 2023, Greek national Nikolaos Bogonikolos was arrested for overseeing a years-long operation to smuggle into Russia U.S.-origin military and dual-use technology, including sensitive components used in quantum cryptography and nuclear weapons testing.
- In May 2023, Russian nationals Oleg Sergeyevich Patsulya and Vasilii Sergeyevich were arrested for conspiring to violate export control laws and commit money laundering to obtain airplane technology for Russian airlines.
These cases were brought in partnership with Task Force KleptoCapture, an interagency law enforcement effort dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States, along with its allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine.
Assistant Attorney General for National Security Matthew G. Olsen and Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department, and five U.S. Attorneys from offices around the country, and officials from HSI and FBI announced the Strike Force’s first five cases in May 2023.-
Three cases charged former employees of U.S. companies with stealing confidential and proprietary information related to sensitive technology and attempting to take such information to China, and one case charged a defendant with seeking to obtain technology from U.S. manufacturers on behalf of Chinese end users.
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In February 2024, California resident Chenguang Gong was arrested for transferring more than 3,600 files containing proprietary information from his employer, including files with blueprints for sophisticated missile-detection technology. According to the complaint, Gong sought funding from the People’s Republic of China (PRC)-administered “Talent Programs,” which recruit individuals overseas with expertise sought after by the PRC, to develop similar technology.
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In May 2023, Liming Li of California was arrested for his alleged theft of sensitive technology related to advanced manufacturing software programs from his Southern-California-based employers and using that information to market his own competing company to businesses in China.
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In May 2023, California man and former Apple employee Weibao Wang was charged in connection with a scheme to steal Apple source code and other proprietary information related to autonomous systems. Allegedly, he left Apple to work as an engineer for a U.S.-based subsidiary of a China-based company to work on the development of self-driving cars, and, following a search of his residence, Wang left the country for China.
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In December 2023, Belgian national Hans Maria De Geetere was charged and arrested in Belgium for crimes related to a years-long scheme to export accelerometers used in aerospace and military systems from the United States to end users in China.
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Three cases charged individuals with seeking to procure sensitive U.S. technology on behalf of the government of Iran or Iranian end users.
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In February 2024, Iranian national Abolfazi Bazzazi and his son Mohammad Resa Bazzazi were charged with violating U.S. sanctions by procuring for the Government of Iran and other Iranian ends users goods and technology from U.S. companies that supply the military, aerospace, and firefighting industries.
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In January 2023, four Chinese nationals, Baoxia Liu, You Wa Yung, Yongxin Li, and Yanlai Zhong, were charged with smuggling U.S.-origin items used in the production of UAVs and ballistic missile systems through Chinese front companies to Iranian entities with ties to the Islamic Revolutionary Guard Corps and Ministry of Defense.
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In May 2023, Chinese national Xiangjiang Qiao was charged with multiple offenses related to a scheme to use a sanctioned Chinese company to provide high-tech materials used in the production of weapons of mass destruction to Iran, in exchange for payments made through the U.S. financial system.
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Secured the guilty plea of a defendant charged for her role in a multimillion-dollar scheme to send electronic components used in UAVs and guided missile systems and other weapons to sanctioned entities in Russia.
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In February 2024, Canadian national Kristina Puzyreva, one of three defendants charged in the case, pleaded guilty to money laundering conspiracy as part of a sophisticated sanctions and export control scheme involving two Brooklyn-based companies.
Issued Temporary Denial Orders against 29 entities, including airlines, freight forwarders, defense companies, and others to cut off their access to controlled U.S. items.
Contributed to numerous parties being placed on Commerce’s Entity List and Treasury’s Specially Designated Nationals and Blocked Persons List.
Forged international partnerships committed to preventing critical technology from being siphoned off by foreign adversaries.
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Assistant Attorney General Matthew Olsen and Assistant Secretary for Export Enforcement Matthew Axelrod traveled to Kyiv in November 2023, following prior visits by the Attorney General to Ukraine, to reaffirm the Strike Force’s close partnership with the Ukrainian Prosecutor General and commitment to curbing the illegal flow of advanced technology to Russia.
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Following the Camp David Leaders’ Summit with President Biden and the leaders of Japan and Korea, DOJ and Commerce took steps to establish a Disruptive Technology Protection Network with South Korea and Japan to expand collaboration on technology protection measures, including expanding information-sharing and the exchange of best practices across the three countries’ enforcement agencies.
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As part of the Munich Security Conference, Assistant Attorney General Matthew Olsen and Assistant Secretary Matthew Axelrod participated in a panel discussion on safeguarding disruptive technology in a new era of economic statecraft.
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During a speech in the United Kingdom, where she announced the creation of the Strike Force in February 2023, Deputy Attorney General Lisa Monaco delivered remarks about the national security risks posed by artificial intelligence and why it is a top enforcement priority for the Strike Force.
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Assistant Attorney General Matthew Olsen delivered remarks and participated in a roundtable discussion hosted by the American Academy at the U.S. embassy in Berlin, Germany. Throughout the visit, AAG Olsen reaffirmed the Department’s close partnership with foreign counterparts to stop the flow of sensitive technology to foreign adversaries.
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Assistant Secretary of Commerce for Export Enforcement Matthew Axelrod delivered remarks on international partnerships, with a focus on the Strike Force, at the Federal Office for Economic Affairs and Export Control-Bureau of Industry and Security Export Control Forum in Frankfurt, Germany.
Assistant Attorney General for National Security Matthew G. Olsen and Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department tour the Kyiv Scientific Research Institute of Forensic Expertise, which houses drones, electronic components, and other devices used by Russia and found on the battlefields in Ukraine. The two traveled to Kyiv, Ukraine from Oct. 30 – Nov. 1, 2023, to meet with counterparts about stopping the flow of sensitive technology to Russia.Fostered partnerships with the private sector, working directly with companies involved in the manufacture, sale, and shipment of sensitive export-controlled items.
- Hosted industry outreach events in Boston, Massachusetts; Houston, Texas; and Phoenix, Arizona to educate industry on the Strike Force’s work to stem the flow of sensitive technology to our adversaries, recent corporate enforcement initiatives, and tips and best practices for working with investigators on issues related to export compliance, cybersecurity, and protecting intellectual property.
- Convened roundtable discussions with compliance officials and technical experts at multiple cutting-edge tech companies, research institutions, and defense contractors.
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Toured the largest and third-largest commercial ports in the United States
Added new interagency partners to the effort and enforcement teams to the Strike Force.
- To strengthen efforts to protect defense industry technology, the Strike Force added the Defense Criminal Investigative Service as a formal Strike Force partner.
- To strategically align Strike Force presence with the location of critical technology-related industries throughout the United States, the Strike Force added enforcement teams in the Eastern District of North Carolina, the Western District of Texas, and the Southern District of Georgia.
Doctor Convicted of $2.8M Medicare Fraud SchemeRead the Press Release
A federal jury convicted a California man yesterday for his role in a scheme to defraud Medicare by billing $2.8 million for hospice services that patients did not need.
According to court documents and evidence presented at trial, Dr. John Thropay, 74, of Arcadia, was the medical director of several hospice companies, including Blue Sky Hospice Inc. located in Van Nuys, California. From October 2014 to March 2016, Thropay fraudulently certified Medicare patients of Blue Sky as having terminal illnesses that the patients did not have so that Blue Sky Hospice could bill Medicare for hospice services. In 2015, Thropay was listed as attending provider for more hospice claims paid by Medicare than any other provider in the nation.
The jury convicted Thropay of one count of conspiracy to commit health care fraud and four counts of health care fraud. He is scheduled to be sentenced on May 28 and faces a maximum penalty of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Acting Assistant Director in Charge Amir Ehsaei of the FBI Los Angeles Field Office made the announcement.
HHS-OIG and the FBI investigated the case.
Assistant Deputy Chief Niall M. O’Donnell and Trial Attorney Eric C. Schmale of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, the 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.
Corn Milling Company Officials Sentenced to Federal Prison for Their Role in Deadly Explosion that Killed Five WorkersRead the Press Release
U.S. District Court Judge James D. Peterson for the Western District of Wisconsin today and yesterday sentenced Didion Milling Inc. officials – including a corporate vice president and former food safety, environmental, and operations managers – for their role in a fatal explosion at a mill operated by Didion.
“These defendants put Didion workers in grave danger and five people tragically lost their lives, devastating their families and their community,” said Attorney General Merrick B. Garland. “Companies of all sizes should take note: failure to comply with our country’s workplace safety and environmental laws can cost workers their lives and put individual corporate managers in federal prison.”
On May 31, 2017, at around 10:30 p.m., a fire originated in milling equipment at Didion’s corn mill in Cambria, Wisconsin. The fire led to a series of combustible dust explosions in the facility, killing five workers and seriously injuring others. The explosions also damaged and caused the collapse of multiple mill buildings. An investigation into Didion’s worker and food safety and environmental practices uncovered criminal violations of law attributable to both the company and senior officials.
Grain milling generates grain dust, which must be effectively managed for workplace safety, environmental, and food safety and quality reasons. Mill operators must adhere to rules and requirements intended to minimize hazards. Grain dust is combustible, and mill operators need to maintain workplace safety through cleaning programs that remove dust accumulations from inside a mill. Mill operators must also capture dust before it is emitted into the environment as particulate matter, a kind of air pollutant. Investigations of the explosion at Didion’s Cambria mill uncovered long-standing inadequate safety measures and improper handling of grain dust that Didion and its employees concealed through falsified documents and other obstructive conduct.
In October 2023, the Justice Department secured guilty pleas from the company, Didion, and company officials, as well as convictions against two more Didion officials. Today and yesterday, three defendants were sentenced to prison time for their crimes, and another three were sentenced to probation. Sentencing for an additional defendant is scheduled for March. The company was sentenced last month.
“Workplace and environmental safety are of paramount importance,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will continue seeking to enforce regulations designed to prevent workplace disasters, and also to punish deceptive conduct that would undermine the administration of these important federal programs.”
“Didion Milling and its senior managers put corporate profits ahead of worker safety and environmental protection, with tragic consequences,” said Assistant Administrator David M. Uhlmann of the Environmental Protection Agencie’s (EPA) Office of Enforcement and Compliance Assurance. “The sentences imposed this week demonstrate that EPA and its law enforcement partners are committed to seeking justice for victims of environmental crime and their families.”
“The Didion Milling dust explosion was a tragic incident resulting from a notorious industrial hazard. Individuals considering falsifying records are on notice that making false statements and attempting to obstruct our investigation are serious crimes and will be punished as such,” said Acting Secretary of Labor Julie Su. “The court’s sentences hold the company and these individuals accountable and send a clear message that cover-ups related to workplace safety will not be tolerated.”
Didion Vice President of Operations, Derrick Clark, was sentenced to two years in prison, a year of supervised release, and a $5,000 fine. Clark was convicted in October 2023 of conspiring to falsify documents relating to dust cleaning practices in the mill and the operation of air pollution prevention equipment, and making false compliance certifications as Didion’s “responsible official” under the Clean Air Act. He was also convicted for obstructing the Occupational Safety and Health Administration’s (OSHA) investigation of the explosion at the corn mill by making false and misleading statements during a sworn deposition.
Former Environmental Manager Joseph Winch was sentenced to two years in prison, two years of supervised release, and a $10,000 fine for conspiring to falsify Didion’s environmental compliance certifications. Winch pleaded guilty to the conspiracy charge before trial, but the court’s sentencing took into consideration Winch’s effort to obstruct the trial of his co-defendants by committing perjury during his trial testimony.
Former Food Safety Superintendent Shawn Mesner was sentenced to two years in prison and a year of supervised release after being convicted in October 2023 of conspiring to commit fraud and to falsify Didion’s sanitation log. Falsification of the log was part of a scheme to mislead Didion’s customers and auditors about the company’s sanitation practices. The log also related to Didion’s compliance with worker safety protections, including the required cleanup of combustible dust, like fine grain dust, to prevent fires and explosions in grain handling facilities. The log purported to be a record of those dust cleanings. Mesner also provided untruthful testimony to OSHA during a sworn statement after the explosion.
Judge Peterson also sentenced three former Didion shift superintendents – Anthony Hess, Joel Niemeyer and Michael Bright – who were convicted of crimes relating to falsification of Didion’s sanitation log. All three pleaded guilty to felonies before trial and accepted responsibility for their actions. Hess was sentenced to a year of probation and a $5000 fine; Niemeyer was sentenced to a year of probation and a $1000 fine; and Bright was sentenced to a year of probation. A fourth shift superintendent who pleaded guilty to felonies, Nicholas Booker, is scheduled to be sentenced in March.
Didion, the company, pleaded guilty to falsifying its environmental and sanitation logs. Judge Peterson sentenced the company last month to pay $10.25 million in restitution to the victims of the May 2017 explosion and a $1 million fine, as well as to serve five years of probation with special conditions related to oversight of Didion’s operations.
Information on how to file a safety and health complaint about unsafe work conditions can be found at www.osha.gov/workers/file-complaint. Information about how to file a complaint of retaliation for having engaged in workplace safety-related protected activity can be found at the same website.
Information on how to report suspected environmental violations may be found at echo.epa.gov/report-environmental-violations Information on how to file a retaliation compliant based on protected activity under the Clean Air Act can be found at www.osha.gov/sites/default/files/publications/OSHA3784.pdf.
The EPA Criminal Investigation Division investigated the case.
Trial Attorneys Samuel Charles Lord and Joel La Bissonniere and Senior Trial Attorney Richard J. Powers of the Environment and Natural Resources Division’s Environmental Crimes Section are prosecuting the case, with logistical and victim services support from the U.S. Attorney’s Office for the Western District of Wisconsin.
Readout of Deputy Attorney General Lisa Monaco’s Trip to LondonRead the Press Release
Deputy Attorney General (AG) Lisa Monaco traveled to London this week to highlight the continued collaboration of the United States and United Kingdom to combat persistent threats to global security, including emerging challenges like the theft and misuse of disruptive technologies, especially artificial intelligence (AI).
In meetings with her national security and law enforcement counterparts across the U.K.’s Cabinet Office, Home Office, MI5, GCHQ, Metropolitan Police Department, and National Crime Agency, the Deputy AG emphasized the need for sustained partnership between the U.S. and U.K. against shared threats from malign state actors, especially nation-states looking to sow chaos and further their autocratic agendas amid global elections this year.
Together with Permanent Secretary Matthew Rycroft, the Deputy AG convened the second meeting of their ongoing, strategic dialogue, combining the expertise and capabilities of the Home Office and the Justice Department to identify and address emerging threats. They discussed ways both countries can continue to protect against transnational repression, cybercrime — including ransomware and fraud — and terrorism, especially in the wake of the October 7th attacks.
The Deputy AG delivered remarks at Oxford University on the promise and peril of AI. She shared the principles guiding the Justice Department as it harnesses the benefits of AI to fulfill its mission — and also outlined the Department’s approach to mitigating the risks posed by its misuse. The Deputy AG announced the launch of “Justice AI,” a series of convenings the Department will hold across civil society, academia, science, and industry to draw on varied perspectives about integrating AI.
In her speech, she stressed how AI is already lowering the barriers to entry for criminals and emboldening our adversaries. She announced that going forward, where appropriate, federal prosecutors should seek stiffer sentences for offenses made significantly more dangerous by the misuse of AI — and that if existing sentencing enhancements cannot adequately address the harms caused by misuse of AI, the Department will seek reforms to them.
The Deputy AG also highlighted the work of the Disruptive Technology Strike Force, which she launched last year to strike back against adversaries trying to siphon off America’s most advanced technology for use against us. Calling AI the “ultimate disruptive technology,” the Deputy AG emphasized that going forward, that strike force will prioritize AI in its enforcement actions.
While in London, the Deputy AG visited the American Embassy for a briefing with U.S. officials on their work and to thank them for their dedicated public service. Ambassador Jane Hartley hosted a reception in honor of the Deputy AG’s visit and to celebrate the continued collaboration between both countries.
The Deputy AG departed London for Munich, where she will participate in the Munich Security Conference and the Munich Cyber Security Conference.
Photo credit: U.S. Embassy London. Photo credit: The Oxford Martin School.Justice Department Sues Tennessee for Enforcing State Law that Discriminates Against People with HIVRead the Press Release
The Justice Department filed a lawsuit today against the State of Tennessee and the Tennessee Bureau of Investigation (TBI) for violating the Americans with Disabilities Act (ADA). The department previously notified Tennessee and the TBI that they violated the ADA by enforcing the state’s aggravated prostitution statute against people living with human immunodeficiency virus (HIV). That letter of findings detailed the minimum remedial measures necessary to address the discrimination.
“The enforcement of state criminal laws that treat people differently based on HIV status alone and that are not based on actual risks of harm, discriminate against people living with HIV,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “People living with HIV should not be subjected to a different system of justice based on outdated science and misguided assumptions. This lawsuit reflects the Justice Department’s commitment to ensuring that people living with HIV are not targeted because of their disability.”
The department’s investigation found that the state and TBI subject people living with HIV to harsher criminal penalties solely because of their HIV status, violating Title II of the ADA. Tennessee’s aggravated prostitution statute elevates what would otherwise be misdemeanor conduct to a felony because the individual has HIV, regardless of any actual risk of harm. A person convicted of aggravated prostitution faces three to 15 years in prison and a fine up to $10,000, while a person convicted of a misdemeanor charge based on the same conduct is subject to a penalty of no more than six months in prison and up to a $500 fine.
Aggravated prostitution is also categorized as a “violent sexual offense” mandating registration by those convicted on the Tennessee Sex Offender Registry, in most cases for life. The state maintains the registry through the TBI. Individuals placed on the registry due to convictions for aggravated prostitution are restricted in where they may live, work and go in public, and have experienced increased homelessness and unemployment. These individuals also face public disclosure of information about their HIV status, which can lead to harassment and discrimination. For example, the complaint identifies one person who has struggled to find safe housing that complies with the registry’s requirements and has experienced periods of homelessness, has been denied employment because she is on the registry, and is prevented from spending time alone with her nephew because of her conviction.
The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov.
Grand Jury Returns Indictment Charging FBI Confidential Human Source with Felony False Statement and Obstruction CrimesRead the Press Release
Today, a federal court unsealed a two-count indictment returned by a federal grand jury in the Central District of California charging Alexander Smirnov, 43, with making a false statement, in violation of 18 U.S.C. § 1001, and creating a false and fictitious record, in violation of 18 U.S.C. § 1519, for statements he made that were recorded in an official record of the Federal Bureau of Investigation (FBI) known as a Form 1023.
David C. Weiss, Special Counsel, made the announcement.
On February 14, 2024, a federal grand jury returned the indictment and Smirnov was arrested at the Harry Reid International Airport in Las Vegas, Nevada, after his arrival in the U.S. from overseas. Later today, Smirnov will have an initial appearance at the federal courthouse in the District of Nevada at 2:30 p.m. pacific time.
According to the indictment, Smirnov was a confidential human source (CHS) with the FBI. As alleged in the indictment, despite repeated admonishments that he must provide truthful information to the FBI and that he must not fabricate evidence, Smirnov provided false derogatory information to the FBI about Public Official 1, and Businessperson 1, the son of Public Official 1, in 2020, after Public Official 1 became a presidential candidate.
The indictment alleges that in March 2017, Smirnov reported to an FBI Agent that he had had a phone call with the owner of Ukrainian industrial conglomerate Burisma Holdings, Limited concerning Burisma’s interest in acquiring a U.S. company and making an initial public offering (IPO) on a U.S.-based stock exchange. In reporting that conversation to the FBI Agent, Smirnov also noted that Businessperson 1, Public Official 1’s son, was a member of Burisma’s Board, a fact that was publicly known. The indictment alleges that Smirnov provided no further information.
Three years later, in June 2020, the indictment alleges that Smirnov reported, for the first time, two meetings in 2015 and/or 2016. As alleged in the indictment, Smirnov falsely claimed that during these meetings, executives associated with Burisma, admitted to him that they hired Businessperson 1 to “protect us, through his dad, from all kinds of problems,” and later that they had specifically paid $5 million each to Public Official 1 and Businessperson 1, when Public Official 1 was still in office, so that “[Businessperson 1] will take care of all those issues through his dad,” referring to a criminal investigation being conducted by the then-Ukrainian Prosecutor General into Burisma and to “deal with [the then-Ukrainian Prosecutor General].”
As alleged in the indictment, the events that Smirnov first reported to the FBI Agent in June 2020 were fabrications. In truth and fact, the defendant had contact with executives from Burisma in 2017, after the end of the administration when Public Official 1 had no ability to influence U.S. policy and after the Ukrainian Prosecutor General had been fired in February 2016. The indictment alleges that the defendant transformed his routine and unextraordinary business contacts with Burisma in 2017 and later into bribery allegations against Public Official 1 after expressing bias against Public Official 1 and his presidential candidacy.
As further alleged in the indictment, when he was interviewed by FBI agents in September 2023, Smirnov repeated some of his false claims, changed his story as to other of his claims, and promoted a new false narrative after he said he met with Russian officials.
If convicted, he faces a maximum penalty of 25 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Court documents and information for this case is located on the website of the District Court for the Central District of California or on PACER by searching for Case No. 2:24-cr-00091.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former New York Construction and Remodeling Business Owner Sentenced to Two Years for Filing False Tax ReturnRead the Press Release
A South Carolina man was sentenced today to two years in prison for filing a false federal income tax return.
According to court documents and statements made in court, Timothy Blackman, of Daniel Island, was a self-employed contractor in Auburn, New York, providing construction and remodeling services. From 2007 through 2010, Blackman did not file income tax returns with the IRS or pay income taxes. After learning of a criminal investigation concerning his income taxes in June 2010, Blackman late-filed a false 2007 personal tax return, which underreported his construction and remodeling business’s total gross receipts and income.
In addition to the term of imprisonment, U.S. District Court Judge David Hurd for the Northern District of New York ordered Blackman to serve one year of supervised release.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Carla B. Freedman for the Northern District of New York made the announcement.
IRS Criminal Investigation investigated the case.
Acting Section Chief John N. Kane of the Justice Department’s Tax Division and Assistant U.S. Attorney Michael F. Perry for the Northern District of New York prosecuted the case.
Florida Conspirators Sentenced to Nearly Five Years in Prison Each for Evading over $42 Million in Duties When Illegally Importing and Selling PlywoodRead the Press Release
A Florida husband and wife, Noel and Kelsy Hernandez Quintana were both sentenced yesterday to 57 months in prison for illegally importing and selling between $25 million and $65 million worth of plywood products in violation of the Lacey Act and customs laws. Their employee, Marta Angelbello, was also sentenced.
In addition to their prison sentences, the Quintanas were ordered to pay, jointly and severally, $42,417,318.50 in forfeitures, as well as $1,630,324.46 in storage costs incurred by the government when the Quintanas declined to abandon illegal wood seized by the government, thus forcing the government to maintain the wood in storage pending resolution of the case. The Quintanas were also ordered to serve three years of supervised release following their prison sentences, during which time they are prohibited in engaging in businesses regarding importing or exporting in products specifically protected under the Lacey Act.
Angelbello was sentenced to three years of probation to include 90 days in home detention and was ordered to pay a fine of $3,000.
“Illegal timber trafficking has serious environmental effects. Also, accurate plant import declarations protect domestic producers from dumping by foreign countries and detect potential over-harvesting and trade in timber from high-risk sources,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This case clearly illustrates the ties between natural resource crime and customs laws, and is the result of excellent investigative work by customs officers, import specialists and Homeland Security Investigations.”
“The enforcement of customs laws serves an integral part of U.S. foreign policy and trade policy,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “In this case, the defendants undermined U.S. policy by evading legally mandated customs duties on plywood manufactured in China using Russian timber. Moreover, by doing so, the defendants covered up their criminal scheme to violate federal environmental law, while also unjustly enriching themselves. This case shows the importance of prosecuting customs and environmental offenses.”
“Homeland Security Investigations is committed to pursuing individuals or entities that attempt to defraud the government of millions of dollars, violate U.S. Customs laws and undermine a fair marketplace for businesses,” said Special Agent in Charge Anthony Salisbury of the Homeland Security (HSI) Miami Field Office. “These types of criminal activities only serve to negatively impact the U.S. economy and we will continue to work with our federal law enforcement partners to combat this illicit activity.”
According to court filings, the Quintanas and Angelbello together engaged in a sophisticated scheme to evade antidumping and countervailing duties owed on hardwood plywood products made in China by falsely declaring the species, country of origin or country of harvest of the wood from which the plywood was made. At times they caused containers of plywood to be shipped from China to Malaysia or Sri Lanka, for example, where the wood was taken out of the original containers and put into a second set of containers to conceal the Chinese origin of the product.
The Quintanas incorporated seven companies in the United States – naming relatives or friends as corporate officers and agents – and used these shell companies to import hundreds of shipments of plywood products into the United States between February 2016 and December 2020. The Quintanas also incorporated a financial shell company through which they accepted payments from purchasers for the plywood they imported in violation of law, including the Lacey Act and customs laws.
When importing plant products, the Lacey Act requires filing a declaration which contains, among other things, the plant’s scientific name and its country of harvest. The Lacey Act makes it unlawful to transport or sell a plant product knowing it or the plant it was made from was transported in violation of any plant-related law. Customs laws prohibit false statements in any import declaration without reasonable cause to believe the truth of such statement. It is also illegal to import merchandise contrary to law, including the Lacey Act.
According to the Quintana’s October plea agreement, softwood plywood – regardless of country of export – carried a general duty of 8%, with a few duty-free exceptions, such as if the outer ply was made from Parana pine. Antidumping and countervailing duties of more than 200% applied to hardwood plywood manufactured in China after approximately April 2017.
Before April 2017, the Quintana’s importing shell companies imported containers of plywood into the United States and almost exclusively declared them to be hardwood plywood imported from China. But after April 2017, the companies evaded applicable duties by falsely declaring their hardwood plywood imports from China to be either the product of another country or to be made with a species of wood not subject to duties.
For example, a declaration from July 2018 said plywood in three containers was manufactured in Russia. But the containers were manufactured and loaded in Qingdao, China, and transported to Port Everglades, Florida, through the Panama Canal, without ever stopping in Russia. After federal authorities stopped such a shipment through Panama, the Quintanas used a different tactic to evade duties by shipping Chinese-produced hardwood plywood to Malaysia and transferring the wood to new containers to be shipped onward to the United States. This change of containers was intended to better conceal that the plywood originated from China.
The Quintana also falsely declared some shipments of softwood plywood to be duty-free Parana pine, which allowed them to evade the 8% general duty on these imports.
Additional court filings reflect that, after being alerted to the possibility of prosecution for their illegal acts, the Quintanas fled the United States initially to Panama and then to Montenegro where they were the subject of extradition proceedings.
The couple pleaded guilty to conspiring to import hardwood plywood in violation of the Lacey Act and customs laws and conspiring to sell the illegally imported plywood. Noel Quintana also pleaded guilty to one count of smuggling and one count of importing plant products without filing a declaration including the scientific name and name of the country from which the plants were taken. Kelsy Quintana also pleaded guilty to two counts of importing plant products without filing a declaration including the scientific name and name of the country where the plant was harvested.
HSI investigated the case with support from Customs and Border Protection, U.S. Fish and Wildlife Service and the Animal and Plant Health Investigation Service.
Attorneys from the Environment and Natural Resources Division’s Environmental Crimes Section and the U.S. Attorney’s Office for the Southern District of Florida prosecuted the case.
법무부가 공평성 실행 계획에 대한 업데이트를 발표Read the Press Release
법무부는 오늘 연방 정부를 통한 인종 형평성 증진 및 소외된 지역사회에 대한 지원 강화에 대해 바이든 대통령의 행정 명령을 실행하기 위한 보다 광범위한 노력의 일환으로 오늘 2023 공평성 실행 계획(계획)을 발표했습니다. 법무부의 공평성 실행 계획에 대한 업데이트는 2023년 12월에 완료되었으며, 2024 회계연도에 법무부의 형평성 전략을 이끄는 데 도움이 될 것입니다. 계획은 전통적으로 소외되고 서비스가 부족한 지역사회를 포함한 모든 사람이 법무부의 프로그램 및 자원에 접근하고 그들의 권리를 주장하기 위해 복잡한 법률 및 규제 장애물을 헤쳐 나가 자신의 권리를 옹호하고, 법무부의 업무 범위를 이해하며 법무부 의사 결정권자들과 의미 있게 소통할 수 있도록 지원하겠다는 법무부의 헌신을 기념하는 것입니다.
"법무부는 우리의 프로그램과 서비스가 이를 필요로 하는 모든 지역사회에 도달할 수 있도록 최선을 다하고 있습니다."라고 메릭 B. 갈랜드 법무장관은 말합니다. "이 계획의 다섯 가지 전략은 취약한 지역사회가 중요한 자원에 접근하는 것을 방해하는 장벽을 제거하기 위해 노력함으로써 법치를 수호하고, 사람들을 안전하게 지키며, 민권을 보호하려는 법무부의 광범위한 사명을 발전시키려고 합니다."
법무부는 2024년 회계연도부터 다음 다섯 가지 공평성 전략 추진에 전념하기로 했습니다:
- 연방 자원의 접근 및 수령에 있어서 사회적, 제도적 장벽에 직면한 역사적으로 소외되고 소외된 지역사회와 범죄, 폭력 및 피해로 인해 불균형적으로 영향을 받는 지역사회를 이끌고 주로 봉사하는 단체들에 대한 보조금 지원 및 자원에 대한 접근 장벽을 제거합니다.
- 재범을 줄이고 사법 관련자들(역사적으로 소외되고 취약한 지역사회 및 범죄, 폭력 및 피해로 인해 불균형적으로 영향을 받는 이들)을 위한 결과 개선을 추구하기 위해 의료보험 보장 및 의료 지원의 연속성 개선, 정부 발급 신분증을 얻기 위한 장벽 줄이기, 벌금 및 수수료 지급 불능과 관련된 부담 해결하기 및 기술적 위반 사항에 대한 취소 발생률을 줄이기 위한 지역사회 감독 전형 개선하기를 포함한 교정 및 재진입 프로그램을 지원합니다.
- 소외된 지역사회를 위한 연방, 주, 부족, 지역 및 자치 지역 법 집행 기관 내에서 대표성에 대한 장벽을 제거함으로써 대중의 신뢰를 강화하고 공공 안전 결과를 개선하기 위해 포용적이고 다양하며 전문적인 법 집행 인력을 육성합니다.
- 여성, 소녀, 성전환자 및 성별 불일치자(성별 기반 폭력 및 성매매를 포함한)에게 불균형적인 영향을 끼치는 범죄에 대한 법 집행 및 형사 사법 인력의 대응을 개선하기 위해 이러한 범죄를 수사하고 기소하는 방법을 대상으로 한 교육; 피해자가 이용할 수 있는 정신적 외상에 대한 정보와 문화적으로 민감한 접근 방식, 돌봄 및 서비스에 대한 교육 및 자원; 그리고 역사적으로 소외되고 취약한 사람들과의 관계를 구축하고 서비스 및 도움에 대한 접근을 늘리는 것과 함께 자원과 지원을 제공 및 또는 지원합니다.
- 소외된 지역사회가 (그중에서도 영어 실력이 부족한 사람들과 장애인들을 포함해) 환경 범죄, 오염, 기후변화 및 기타 환경적 위험을 해결하기 위한 법률 서비스에 대해 인식하며 접근할 수 있고, 깨끗한 물, 공기 및 기타 천연자원에 대한 접근을 확보하는 데 필요한 법률 및 규제 환경을 탐색하는 데 도움을 받도록 보장합니다.
이러한 공평성 전략은 행정 명령 제14091호에 명시된 의무를 준수하기 위해 노력하고 법무부의 2022 공평성 실행 계획에 요약된 다섯 가지 공평성 우선순위를 기반으로 구축합니다.
이 중요한 작업이 진행됨에 따라https://www.justice.gov/equity에 업데이트가 게시됩니다. 바이든 해리스 행정부의 공평성 의제와 관련된 계획들은 www.whitehouse.gov/equity에서 더 자세히 알 수 있고 www.performance.gov/equity에서 모든 기타 연방 공평성 실행 계획을 확인할 수 있습니다.
- 연방 자원의 접근 및 수령에 있어서 사회적, 제도적 장벽에 직면한 역사적으로 소외되고 소외된 지역사회와 범죄, 폭력 및 피해로 인해 불균형적으로 영향을 받는 지역사회를 이끌고 주로 봉사하는 단체들에 대한 보조금 지원 및 자원에 대한 접근 장벽을 제거합니다.
司法部發佈公平行動計畫更新Read the Press Release
司法部今天宣佈發佈2023年公平行動計畫（計畫），該計畫是司法部為執行拜登總統關於 通過聯邦政府進一步促進種族平等和支援服務欠缺社區的行政命令而做出的更廣泛努力的一部分。司法部公平行動計畫的更新於2023年12月完成，將有助於指導司法部2024財年的公平戰略。該計畫紀錄了司法部致力於幫助所有人（包括歷史上被邊緣化和服務欠缺的社區）參與司法部計畫的承諾和資源，克服複雜的法律和監管障礙以維護自己的權利，瞭解司法部工作的廣度，並與司法部決策者進行有意義的接觸。
“司法部承諾保證我們的計劃及服務貫徹到每一個需要它們的社區,” 司法部長 Merrick B. Garland 指出. “該計劃中的五項公平戰略旨在通過努力清除阻止弱勢社區獲取關鍵資源的障礙來推進司法部的更廣汎的職責以維護法制, 保障公衆安全, 及保護公民權利.”
2024 財年，司法部承諾推進以下五項公平戰略：
- 清除障礙，使歷史上邊緣化和服務欠缺的社區領導並主要其服務的組織和受到不成比例的犯罪、暴力和其他危害的社區得以獲得贈款資金和資源，前者在獲取和接受聯邦資源時，面臨社會和系統性障礙。
- 支持懲戒和重返社會計畫，旨在減少累犯並改善司法行動涉及者（包括來自歷史上邊緣化和服務欠缺的社區者及受到不成比例的犯罪、暴力和其他危害者）的結果，包括通過改善醫療保健覆蓋率和連續性護理支持，減少在獲得政府頒發的身份證明時的障礙，解決與無力支付罰款和費用相關的負擔，並改進社區監督模式，以減少因技術違規而被撤銷的發生率。
- 通過消除聯邦、各州、部落、地方和地區執法機構中招募來自人數欠缺的社區的人員的障礙，促進一支包容、多元化和專業的執法隊伍，以加強公眾信任並改善公共安全成果。
- 通過提供和/或支持以下措施，改善執法和刑事司法人員對嚴重影響婦女、女童、跨性別者和非常規性別不合者（包括基於性別的暴力和性販運）的犯罪的反應：如何調查並起訴這些罪行的針對性培訓；為受害者提供有關創傷知情和文化回應方法、護理和服務的培訓和資源；提供資源和支援，為同歷史上邊緣化和服務欠缺的社區建立關係，並增加其獲得服務和援助的機會。
- 確保服務欠缺的社區（包括英語水準有限的人和殘疾人等）瞭解並能夠獲得法律服務，以解決環境犯罪、污染、氣候變化和其他環境危害，並幫助其瞭解必需的法律和監管資訊，確保其獲得清潔水、空氣和其他自然資源。
這些公平戰略力求遵守第14091 號行政命令中規定的任務，並在司法部2022 年公平行動計畫中概述的五個公平優先事項為基礎上百尺竿頭，更進一步。
隨著此項關鍵工作的進展，更新將發佈於網站 https://www.justice.gov/equity。您可在www.whitehouse.gov/equity上瞭解有關拜登-哈里斯政府的公平議程和相關舉措的更多資訊，並在www.performance.gov/equity上查看所有其他聯邦公平行動計畫。
- 清除障礙，使歷史上邊緣化和服務欠缺的社區領導並主要其服務的組織和受到不成比例的犯罪、暴力和其他危害的社區得以獲得贈款資金和資源，前者在獲取和接受聯邦資源時，面臨社會和系統性障礙。
司法部发布公平行动计划更新Read the Press Release
司法部今天宣布发布2023年公平行动计划（计划），该计划是司法部为执行拜登总统关于 通过联邦政府进一步促进种族平等和支持服务欠缺社区的行政命令而做出的更广泛努力的一部分。司法部公平行动计划的更新于2023年12月完成，将有助于指导司法部2024财年的公平战略。该计划纪录了司法部致力于帮助所有人（包括历史上被边缘化和服务欠缺的社区）参与司法部计划的承诺和资源，克服复杂的法律和监管障碍以维护自己的权利，了解司法部工作的广度，并与司法部决策者进行有意义的接触。
“司法部承诺保证我们的计划及服务贯彻到每一个需要它们的社区,” 司法部长Merrick B. Garland 指出. “该计划中的五项公平战略旨在通过努力清除阻止弱势社区获取关键资源的障碍来推进司法部的更广泛的职责以维护法制, 保障公众安全, 及保护公民权利.”
2024 财年，司法部承诺推进以下五项公平战略：
- 清除障碍，使历史上边缘化和服务欠缺的社区领导并主要其服务的组织和受到不成比例的犯罪、暴力和其他危害的社区得以获得赠款资金和资源，前者在获取和接受联邦资源时，面临社会和系统性障碍。
- 支持惩戒和重返社会计划，旨在减少累犯并改善司法行动涉及者（包括来自历史上边缘化和服务欠缺的社区者及受到不成比例的犯罪、暴力和其他危害者）的结果，包括通过改善医疗保健覆盖率和连续性护理支持，减少在获得政府颁发的身份证明时的障碍，解决与无力支付罚款和费用相关的负担，并改进社区监督模式，以减少因技术违规而被撤销的发生率。
- 通过消除联邦、各州、部落、地方和地区执法机构中招募来自人数欠缺的社区的人员的障碍，促进一支包容、多元化和专业的执法队伍，以加强公众信任并改善公共安全成果。
- 通过提供和/或支持以下措施，改善执法和刑事司法人员对严重影响妇女、女童、跨性别者和非常规性别不合者（包括基于性别的暴力和性贩运）的犯罪的反应：如何调查并起诉这些罪行的针对性培训；为受害者提供有关创伤知情和文化响应方法、护理和服务的培训和资源；提供资源和支持，为同历史上边缘化和服务欠缺的社区建立关系，并增加其获得服务和援助的机会。
- 确保服务欠缺的社区（包括英语水平有限的人和残疾人等）了解并能够获得法律服务，以解决环境犯罪、污染、气候变化和其他环境危害，并帮助其了解必需的法律和监管信息，确保其获得清洁水、空气和其他自然资源。
这些公平战略力求遵守第14091 号行政命令中规定的任务，并在司法部2022 年公平行动计划中概述的五个公平优先事项为基础上百尺竿头，更进一步。
随着此项关键工作的进展，更新将发布于网站 https://www.justice.gov/equity。您可在www.whitehouse.gov/equity上了解有关拜登-哈里斯政府的公平议程和相关举措的更多信息，并在www.performance.gov/equity上查看所有其他联邦公平行动计划。
- 清除障碍，使历史上边缘化和服务欠缺的社区领导并主要其服务的组织和受到不成比例的犯罪、暴力和其他危害的社区得以获得赠款资金和资源，前者在获取和接受联邦资源时，面临社会和系统性障碍。
Kagawaran ng Katarungan, Naglabas ng Update sa Plano ng Aksyong Pagkakapantay-pantayRead the Press Release
Ang Kagawaran ng Katarungan ay naghayag ngayong araw ng pagpapalabas ng 2023 Plano ng Aksyong Pagkakapantay-pantay (Plano), na bahagi ng mas malawak na pagsisikap ng Kagawaran na ipatupad ang Nakatataas na Kautusan ni Pangulong Biden sa Higit pang Pagsusulong ng Pagkakapantay-pantay at Pagsuporta sa Lahi para sa Kulang sa Serbisyong mga Pamayanan sa Pamamagitan ng Pederal na Pamahalaan. Ang update sa Plano ng Aksyong Pagkakapantay-pantay ng Kagawaran ng Katarungan ay tinapos noong Disyembre 2023 at tutulong sa pag-gabay sa mahusay na pamamaraan sa pagkakapantay-pantay sa Taon ng Pananalapi 2024 ng Kagawaran . Ang Plano ay nagpapaalala sa pangako ng Kagawaran sa pagtulong sa lahat ng mga tao - kabilang ang minamaliit at kulang sa serbisyo na mga pamayanan sa kasaysayan – sa pag-kamit sa mga programa ng Kagawaran at mapagkukunan, pagtimon sa mga kumplikadong legal at regulasyong hadlang upang maitaguyod ang kanilang mga karapatan, maunawaan ang lawak ng gawain ng Kagawaran, at makabuluhang pakikipag-ugnayan sa mga taga-gawa ng desisyon sa Kagawaran ng Katarungan.
Ang Kagawaran ng Katarungan ay nakatuon sa katiyakan na ang aming mga programa at serbisyo ay makakarating sa bawat pamayanan na nangangailangan ng mga ito,” ayon kay Pangunahing Abogado Merrick B. Garland. “Ang limang mga mabisang pamamaraan sa Planong ito ay naghahangad na isulong ang mas malawak na misyon ng Kagawaran na panindigan ang patakaran ng batas, panatilihing ligtas ang mga tao, at protektahan ang mga karapatang sibil sa pamamagitan ng pagkilos na alisin ang mga hadlang na pumipigil sa mga mahihinang komunidad/ pamayanan na makapag-kamit ng mga kritikal na mapagkukunan.
Para sa Taon ng Pananalapi ng 2024, ang Kagawaran ng Katarungan ay nangako na isusulong ang limang sumusunod na mga pamamaraan sa pagkakapantay-pantay:
- Ang pag-aalis ng mga balakid para makamit ang pag-gawad ng pondo at mga mapagkukunan para sa mga organisasyong pinangungunahan ng at siyang pangunahing nagsisilbi sa mga minamaliit at kulang sa serbisyong mga komunidad/ pamayanan na naharap na sa mga pang-lipunan at nakapaloob ng balakid sa pagkamit at pagtanggap ng mga mapagkukunang Pederal, gayundin sa mga pamayanang lubusang naapektohan ng krimen, karahasan, at pambibiktima.
- Ang pagsuporta sa mga programang pagwawasto at muling pagpasok na naglalayon na bawasan ang muling pagkakasala at mapabuti ang mga resulta para sa sangkot-hustisyang mga indibidwal (kabilang ang mga mula sa minamaliit at kulang sa serbisyong mga pamayanan sa kasaysayan at yung mga pamayanan na lubusang naapektohan ng krimen, karahasan, at pambibiktima), kasama na ang pagpapabuti ng saklaw ng pangangalagang pangkalusugan at pagpapatuloy ng mga suporta sa pangangalaga, pagbabawas ng mga balakid sa pagkuha ng pagkakakilanlan na bigay ng pamahalaan, pagtugon sa mga pasanin na nauugnay sa kawalan ng kakayahang magbayad ng mga multa at bayarin, at pagpapaunlad ng mga modelo ng pangangasiwa ng komunidad/pamayanan upang mabawasan ang insidente ng pagpapawalang bisa dahil sa mga teknikong paglabag.
- Ang pagsusulong ng nagpapabilang, magkakaiba, at dalubhasang manggagawa sa pagpapatupad ng batas upang palakasin ang tiwala ng madla at mapaunlad ang mga resulta ng kaligtasang pampubliko sa pamamagitan ng pag-aalis ng mga balakid sa sa pagkatawan sa loob ng mga ahensyang nagpapatupad ng batas ng Pederal, Estado, Panlipi, lokal, at maka-teritoryo para sa mga pamayanan na kulang sa pagkatawan.
- Ang pagpapaunlad sa pagtugon ng mga tagapag-patupad ng batas at mga tauhan ng hustisyang pangkrimen sa mga krimen na lubusang naka-apekto sa mga kababaihan, kabataang babae, mga indibidwal na nagpalit ng kasarian, at mga mga kasariang hindi umaayon sa inaasahang gawi (kabilang ang karahasang nakabatay sa kasarian at pangangalakal na sekswal) sa pamamagitan ng pagbibigay at/o pagsuporta: naka-tuon na pagsasanay kung paano imbestigahan at usigin ang mga krimeng ito; pagsasanay at mga mapagkukunan sa mga taong tinatayang dumanas ng matinding karanasan at mga pamamaraang nakakatugon ayon sa kultura, pangangalaga, at mga serbisyong nakalaan sa mga biktima; at mga mapagkukunan at suporta para sa pagbuo ng mga relasyong kasama at pagdaragdag ng ng paraan patungo sa serbisyo at tulong para sa minamaliit at kulang sa serbisyong mga pamayanan sa kasaysayan.
- Ang pagtitiyak na ang kulang sa serbisyong mga pamayanan (kabilang ang mga taong may limitadong kasanayan sa ingles at mga taong may kapansanan, at iba pa) ay may kamalayan at kakayahan na magkamit ng mga serbisyong legal upang pagtuuan ng pansin ang krimeng pang-kapaligiran, polusyon, pagbabago ng klima, at iba pang mga panganib pangkapaligiran at magkaroon ng tulong sa pagtimon ng legal at pinamamahalaang pananaw na kinakailangan para makakuha ng paraan para sa malinis na tubig, hangin, at iba pang likas na yaman.
Ang mga pamamaraang ito sa pagkakapantay-pantay ay naglalayong sumunod sa mga mandato na itinakda sa Utos ng Nakatataas 14091 at binuo batay sa limang mga priyoridad ng pagkakapantay-pantay na nakabalangkas sa 2022 Equity Action Plan ng Kagawaran ng Katarungan.
Habang ang kritikal na gawaing ito ay nagbabagong anyo, ang mga update ay ipo-post sa www. https://www.justice.gov/equity. Maaari kang matuto nang higit pa tungkol sa agenda ng pagkakapantay-pantay at mga kaugnay na pangunguna ng Administrasyong Biden-Harris sa www.whitehouse.gov/equity at suriin ang lahat ng iba pang mga Plano ng Aksyong Pagkakapantay-pantay ng Pederal sa www.performance.gov/equity.
- Ang pag-aalis ng mga balakid para makamit ang pag-gawad ng pondo at mga mapagkukunan para sa mga organisasyong pinangungunahan ng at siyang pangunahing nagsisilbi sa mga minamaliit at kulang sa serbisyong mga komunidad/ pamayanan na naharap na sa mga pang-lipunan at nakapaloob ng balakid sa pagkamit at pagtanggap ng mga mapagkukunang Pederal, gayundin sa mga pamayanang lubusang naapektohan ng krimen, karahasan, at pambibiktima.
Justice Department Sues to Shut Down Ohio Return PreparerRead the Press Release
The Justice Department filed a complaint today seeking to bar an Ohio tax return preparer from owning or operating a tax return preparation business and preparing tax returns for others.
The civil complaint against Emmanuel Antwi and his Cincinnati-based businesses – Manny Travel Agency & Business Services Inc. and Manny Financial, Insurance & Accounting Firm LLC – was filed in the U.S. District Court for the Southern District of Ohio.
The complaint alleges that Antwi knowingly took unreasonable or incorrect positions on returns he prepared that resulted in understatements of the taxes his customers owed and overstatements of the refunds to which they were entitled to receive. In particular, the complaint alleges that Antwi prepared returns that claimed deductions for purported business losses or employee business expenses that he knew were false. The complaint also alleges that Antwi prepared returns where he knowingly reported the wrong filing status.
The government further alleges that Antwi filed hundreds of tax returns each filing season since at least 2020, with at least 95% of the returns he prepares annually claiming a refund. According to the complaint, in addition to seeking an injunction against Antwi and his businesses, the government requested an order of disgorgement to prevent Antwi and his businesses from profiting from their violation of the internal revenue laws.
By repeatedly understating his customers’ tax liabilities, the complaint alleges that the United States has been harmed by Antwi’s conduct resulting in the significant loss in tax revenue of an estimated $1,098,186 in 2020 alone.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers.
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 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.
Antwi Complaint Filed(22891389.1).pdfJustice Department Releases Update to Equity Action PlanRead the Press Release
The Justice Department announced today the release of its 2023 Equity Action Plan (Plan), which is part of the Department’s broader efforts to implement President Biden’s Executive Order on Further Advancing Racial Equity and Support for Underserved Communities Through the Federal Government. The update to the Justice Department’s Equity Action Plan was finalized in December 2023 and will help guide the Department’s equity strategies in Fiscal Year 2024. The Plan memorializes the Department’s commitment to aiding all people – including historically marginalized and underserved communities – in accessing the Department’s programs and resources, navigating complex legal and regulatory hurdles to vindicate their rights, understanding the breadth of the Department’s work, and meaningfully engaging with Justice Department decision-makers.
“The Justice Department is committed to ensuring that our programs and services reach every community that needs them,” said Attorney General Merrick B. Garland. “The five strategies in this Plan seek to advance the Department’s broader mission to uphold the rule of law, keep people safe, and protect civil rights by working to remove the barriers that prevent vulnerable communities from accessing critical resources.”
For Fiscal Year 2024, the Justice Department has committed to advance the following five equity strategies:
- Removing barriers to access to grant funding and resources for organizations led by and that primarily serve historically marginalized and underserved communities that have faced societal and systemic barriers in accessing and receiving Federal resources, as well as to communities disproportionately impacted by crime, violence, and victimization.
- Supporting corrections and reentry programs that seek to reduce recidivism and improve outcomes for justice-involved individuals (including those from historically marginalized and underserved communities and those disproportionately impacted by crime, violence, and victimization) including by improving healthcare coverage and continuity of care supports, reducing barriers to obtaining government-issued identification, addressing burdens associated with inability to pay fines and fees, and improving community supervision models to decrease incidence of revocation for technical violations.
- Promoting an inclusive, diverse, and expert law enforcement workforce to strengthen public trust and improve public safety outcomes by removing barriers to representation within Federal, State, Tribal, local, and territorial law enforcement agencies for underrepresented communities.
- Improving the response of law enforcement and criminal justice personnel to crimes that disproportionately affect women, girls, transgender individuals, and gender non-conforming people (including gender-based violence and sex trafficking) by providing and/or supporting: targeted training on how to investigate and prosecute these crimes; training and resources on trauma-informed and culturally responsive approaches, care, and services available to victims; and resources and support for building relationships with and increasing access to services and assistance for historically marginalized and underserved communities.
- Ensuring that underserved communities (including people with limited English proficiency and people with disabilities, among others) are aware of and able to access legal services to address environmental crime, pollution, climate change, and other environmental hazards and have help navigating the legal and regulatory landscape necessary to secure access to clean water, air, and other natural resources.
These equity strategies seek to adhere to the mandates set forth in Executive Order 14091 and build upon the five equity priorities outlined in the Justice Department’s 2022 Equity Action Plan.
As this critical work evolves updates will be posted on www.justice.gov/equity. You can learn more about the Biden-Harris Administration’s equity agenda and related initiatives at www.whitehouse.gov/equity and review all other Federal Equity Action Plans at www.performance.gov/equity.
Justice Department Finds Nebraska School District Discriminates Against Deaf and Hard of Hearing StudentsRead the Press Release
The Justice Department announced today that Lincoln Public Schools (LPS) in Lincoln, Nebraska, violated the Americans with Disabilities Act (ADA) by denying some deaf and hard of hearing students an equal opportunity to attend their neighborhood schools.
“Denying students with disabilities the right to attend their neighborhood school based on a blanket policy is discriminatory and runs afoul of our nation’s civil rights laws,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “The Justice Department will defend children’s rights to equal educational opportunities in schools, including the right to attend school along with their siblings, friends and members of their community.”
Following a comprehensive investigation, the department found that, when LPS believes that a student needs American Sign Language (ASL) interpretation, LPS requires the student to attend a cluster school serving deaf and hard of hearing students. In applying this policy, LPS does not consider the individualized needs of deaf and hard of hearing students, denies them an equal opportunity to participate in neighborhood school and high school choice programs and fails to provide effective communication to some deaf and hard of hearing students.
LPS’s reliance on the cluster school requirement has harmed students who are deaf or hard of hearing. For example, one student spends up to 90 additional minutes commuting to the cluster school each day. Another student was placed into a cluster program her senior year in high school upon temporarily losing her hearing, even though she does not understand ASL.
LPS’s cluster school requirement also harms the impacted students’ parents who incur transportation costs taking their children to the distant cluster schools.
The department provided its findings and minimum remedial measures necessary in a letter to the school district and asks the school district to change its policies and procedures, designate an ADA coordinator, train staff and pay compensatory damages. View the letter of findings here. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA information line at 800-514-0301 (voice) or (TTY 833-610-1264) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint.
Remote video URLEl Departamento de Justicia publica una actualización del Plan de Acción de EquidadRead the Press Release
El Departamento de Justicia anunció hoy la publicación de su Plan de Acción de Equidad 2023 (el Plan), que forma parte de los esfuerzos más amplios del Departamento destinados a implementar la Orden Ejecutiva del Presidente Biden sobre Avanzar Más la Equidad Racial y el Apoyo para Comunidades Desatendidas en Todo el Gobierno Federal. La actualización del Plan de Acción de Equidad del Departamento de Justicia se finalizó en diciembre de 2023 y ayudará a guiar las estrategias de equidad del Departamento en el año fiscal 2024. El Plan conmemora el compromiso del Departamento con ayudar a todas las personas, incluidas las comunidades históricamente marginadas y desatendidas, a acceder a los programas y recursos del Departamento, salvar complejos obstáculos legales y regulatorios para reivindicar sus derechos, comprender la amplitud del trabajo del Departamento y comprometerse de manera significativa con los responsables de la toma de decisiones del Departamento de Justicia.
“El Departamento de Justicia se compromete a garantizar que nuestros programas y servicios estén al alcance de todas las comunidades que los necesiten”, manifestó el Fiscal General Merrick B. Garland. “Las cinco estrategias de este Plan se proponen adelantar la misión más amplia del Departamento de hacer valer el estado de derecho, mantener al pueblo seguro y proteger los derechos civiles, al laborar para eliminar las barreras que impiden que las comunidades vulnerables accedan a recursos críticos”.
Para el año fiscal 2024, el Departamento de Justicia se ha comprometido a avanzar en las siguientes cinco estrategias de equidad:
- Eliminar las barreras en cuanto al acceso al financiamiento de subvenciones y recursos para organizaciones dirigidas por y que prestan servicios a comunidades históricamente marginadas y desatendidas que han enfrentado barreras sociales y sistémicas a fin de acceder y recibir recursos federales, así como para las comunidades afectadas de manera desproporcionada por la delincuencia, la violencia y la victimización.
- Apoyar los programas correccionales y de reinserción destinados a reducir la reincidencia y mejorar los resultados para las personas involucradas en el sistema judicial (incluidas las de comunidades históricamente marginadas y desatendidas y aquellos que se ven afectados de manera desproporcionada por la delincuencia, la violencia y la victimización), incluso mejorando la cobertura de atención médica y los apoyos de continuidad de la atención, reduciendo las barreras para obtener una identificación emitida por el gobierno, abordando las cargas asociadas con la incapacidad de pagar multas y tarifas, y mejorar los modelos de supervisión comunitaria para disminuir la incidencia de revocaciones por infracciones técnicas.
- Promover una fuerza laboral que sea inclusiva, diversa y experta en la aplicación de la ley para fortalecer la confianza pública y mejorar los resultados de seguridad pública al eliminar las barreras de representación dentro de las agencias del orden público federales, estatales, tribales, locales y territoriales para las comunidades subrepresentadas.
- Mejorar la respuesta del personal encargado del orden público y de la justicia penal frente a los delitos que afectan de manera desproporcionada a las mujeres, las niñas, las personas transgénero y las personas no conformes con el género (incluida la violencia de género y el tráfico sexual) proporcionando y/o apoyando: capacitación específica sobre cómo investigar y enjuiciar estos delitos; capacitación y recursos sobre enfoques, atención y servicios con sensibilidad a los efectos del trauma y culturalmente receptivos disponibles para las víctimas; así como recursos y apoyo para establecer relaciones y aumentar el acceso a los servicios y la asistencia para las comunidades históricamente marginadas y desatendidas.
- Garantizar que las comunidades desatendidas (incluidas las personas con dominio limitado del inglés y las personas con discapacidades, entre otras) estén informadas sobre y puedan acceder a los servicios legales para abordar los delitos ambientales, la contaminación, el cambio climático y otros peligros ambientales, y que reciban ayuda para navegar por el panorama legal y reglamentario necesario a fin de garantizar el acceso al agua y aire limpios, y otros recursos naturales.
Estas estrategias de equidad procuran acatar los mandatos establecidos en la Orden Ejecutiva 14091 y se basan en las cinco prioridades de equidad descritas en el Plan de Acción de Equidad 2022 del Departamento de Justicia.
A medida que evolucione este trabajo crucial, se publicarán actualizaciones en https://www.justice.gov/equity. Se puede obtener más información sobre la agenda de equidad de la Administración Biden-Harris y las iniciativas relacionadas en www.whitehouse.gov/equity y revisar todos los demás Planes Federales de Acción de Equidad en www.performance.gov/equity.
- Eliminar las barreras en cuanto al acceso al financiamiento de subvenciones y recursos para organizaciones dirigidas por y que prestan servicios a comunidades históricamente marginadas y desatendidas que han enfrentado barreras sociales y sistémicas a fin de acceder y recibir recursos federales, así como para las comunidades afectadas de manera desproporcionada por la delincuencia, la violencia y la victimización.
Bộ Tư pháp phổ biến bản cập nhật về Kế hoạch Hành động Công bằngRead the Press Release
Hôm nay, Bộ Tư pháp đã phổ biến Kế hoạch Hành động Công bằng năm 2023 (gọi tắt là Kế hoạch), là một phần trong nỗ lực rộng hơn của Bộ nhằm thực hiện Sắc lệnh Hành pháp của Tổng thống Biden về Thúc đẩy hơn nữa công bằng chủng tộc và hỗ trợ cho các cộng đồng không được phục vụ đúng mức, thông qua Chính quyền Liên bang. Bản cập nhật Kế hoạch Hành động Công bằng của Bộ Tư pháp đã được hoàn tất vào tháng 12 năm 2023 và sẽ hướng dẫn các chính sách tạo công bằng của Bộ trong Năm tài chánh 2024. Kế hoạch nhắc lại quyết tâm của Bộ trong việc hỗ trợ tất cả mọi người – bao gồm các cộng đồng mà trải qua lịch sử đã bị thiệt thòi và không được phục vụ đúng mức – khi tiếp cận các chương trình và nguồn lực của Bộ, giúp họ len lỏi qua các rào cản pháp lý và các quy định phức tạp để đòi hỏi các quyền của họ, giúp họ hiểu được tầm rộng lớn công việc của Bộ để giao tiếp có ý nghĩa với những người trong Bộ Tư pháp có quyền đưa ra quyết định.
“Bộ Tư pháp cam kết đảm bảo rằng các chương trình và dịch vụ của chúng tôi sẽ đến được với mọi cộng đồng cần chúng,” Bộ trưởng Tư pháp Merrick B. Garland cho biết. “Năm chiến lược trong Kế hoạch này nhằm mục đích thúc đẩy sứ mệnh rộng lớn hơn của Bộ nhằm duy trì pháp quyền, giữ an toàn cho mọi người và bảo vệ quyền công dân bằng cách nỗ lực xóa bỏ các rào cản ngăn cản các cộng đồng nguy hiểm tiếp cận các nguồn tài nguyên quan trọng.”
Trong năm tài chánh 2024, Bộ Tư pháp đã cam kết thúc đẩy năm chính sách tạo công bằng sau đây:
- Loại bỏ các rào cản đối với việc tiếp cận các khoản tài trợ và nguồn lực cho các tổ chức được lãnh đạo bởi và chủ yếu phục vụ các cộng đồng mà trải qua lịch sử đã bị thiệt thòi và không được phục vụ đúng mức, đã từng đối mặt với các rào cản mang tính xã hội và hệ thống khi muốn tiếp cận và nhận các nguồn lực của Liên bang, cũng như các cộng đồng bị ảnh hưởng không đồng đều bởi tội phạm, bạo lực và trở thành nạn nhân.
- Hỗ trợ các chương trình khắc phục và tái hòa nhập xã hội nào có mục tiêu giảm bớt tình trạng tái phạm và cải thiện kết quả cho những người bị vướng mắc vào công lý (bao gồm cả những người thuộc các cộng đồng mà trải qua lịch sử đã bị thiệt thòi và không được phục vụ đúng mức và những người bị ảnh hưởng không đồng đều bởi tội phạm, bạo lực và trở thành nạn nhân), bao gồm những chương trình nhằm cải thiện cách chăm sóc sức khỏe và liên tục hỗ trợ chăm sóc, giảm các rào cản để có được giấy tờ tùy thân do chính quyền cấp, giải quyết gánh nặng liên quan đến việc không đủ khả năng trả tiền phạt và lệ phí, cải thiện các mô hình giám sát cộng đồng để giảm tỷ lệ phải thu hồi quyết định do lỗi kỹ thuật.
- Tiến đến việc thành lập một đội ngũ nhân viên thực thi pháp luật toàn diện, đa dạng và chuyên nghiệp để củng cố niềm tin của công chúng và cải thiện kết quả an toàn công cộng bằng cách loại bỏ các rào cản đối với tỷ lệ đại diện trong các cơ quan thực thi pháp luật liên bang, tiểu bang, bộ lạc, địa phương và lãnh thổ cho các cộng đồng ít được đại diện.
- Cải thiện cách phản ứng của nhân viên thực thi pháp luật và tư pháp hình sự đối với các tội phạm gây ảnh hưởng không đồng đều đến phụ nữ, thiếu nữ, người chuyển giới và người không biểu lộ giới tính truyền thống (bao gồm bạo lực dựa trên giới tính và buôn bán tình dục) bằng cách cung cấp và/hoặc hỗ trợ: đào tạo có chủ đích về cách điều tra và truy tố các tội phạm này; đào tạo và nguồn lực về các phương pháp tiếp cận, chăm sóc và phục vụ cho nạn nhân, các phương pháp này có giải thích cho nạn nhân về chấn thương và phù hợp với văn hóa của nạn nhân; và các nguồn lực và hỗ trợ để xây dựng mối quan hệ và tăng mức tiếp cận các dịch vụ và giúp đỡ dành cho các cộng đồng mà trải qua lịch sử đã bị thiệt thòi và không được phục vụ đúng mức.
- Bảo đảm rằng các cộng đồng không được phục vụ đúng mức (bao gồm thành phần trình độ tiếng anh hạn chế và thành phần khuyết tật, bên cạnh thành phần khác) nhận thức được và có thể tiếp cận các dịch vụ pháp lý để giải quyết tội phạm môi trường, ô nhiễm, biến đổi khí hậu và các mối nguy môi trường khác và được giúp đỡ để len lỏi qua các khung cảnh pháp lý và quy định cần thiết để có được nước sạch, không khí sạch và các tài nguyên thiên nhiên khác.
Các chiến lược tạo công bằng này nhằm tuân thủ các nhiệm vụ được quy định trong Sắc lệnh Hành pháp 14091 và xây dựng dựa trên năm chính sách về công bằng được nêu trong Kế hoạch Hành động Công bằng năm 2022 của Bộ Tư pháp.
Trong quá trình thực hiện công việc quan trọng này, chúng tôi sẽ có các bản tin cập nhật và được đăng tại https://www.justice.gov/equity. Quý vị có thể tìm hiểu thêm về chương trình thực hiện công bằng và các kế hoạch có liên quan của Chính quyền Biden-Harris tại www.whitehouse.gov/equity và xem xét tất cả các Kế hoạch Hành động Công bằng Liên bang khác tại www.performance.gov/equity.
- Loại bỏ các rào cản đối với việc tiếp cận các khoản tài trợ và nguồn lực cho các tổ chức được lãnh đạo bởi và chủ yếu phục vụ các cộng đồng mà trải qua lịch sử đã bị thiệt thòi và không được phục vụ đúng mức, đã từng đối mặt với các rào cản mang tính xã hội và hệ thống khi muốn tiếp cận và nhận các nguồn lực của Liên bang, cũng như các cộng đồng bị ảnh hưởng không đồng đều bởi tội phạm, bạo lực và trở thành nạn nhân.
Former Palm Beach County Resident Sentenced to Three Years in Prison for Not Filing Tax Returns and Naturalization FraudRead the Press Release
A former Florida woman was sentenced yesterday to three years in prison for willfully failing to file tax returns and naturalization fraud.
According to court documents and statements made in court, Lucia Andrea Gatta was an Italian citizen, born in Chile. In 2001, Gatta moved to and began residing in the United States, and in 2012 she became a naturalized U.S. citizen.
Starting with tax year 2005, Gatta stopped filing tax returns or paying taxes on her income to the IRS. From 2011 to 2013, Gatta possessed millions of dollars in assets held in a foreign bank account in Switzerland that earned her hundreds of thousands in interest and dividend income every year. U.S. citizens and permanent residents are required to file with the U.S. Treasury Department a FinCEN Form 114 - Report of Foreign Bank and Financial Accounts (FBAR) if the combined balance of all foreign accounts they own, have a financial interest in or signature authority over is more than $10,000 at any point during a calendar year. For those years, Gatta did not file an annual FBAR reporting her interest in her Swiss bank account.
During her citizenship application process, Gatta falsely reported that she had not committed crimes, including her willful failure to file tax returns. Instead, Gatta lied to immigration officials about her income and claimed that her family financially supported her. She also submitted to a U.S. immigration officer false documents that purported to show she had minimal income.
Once Gatta knew she was under criminal investigation, she left the United States for Italy and contested her extradition for over 18 months. But in August 2023, the Italian government ordered Gatta’s extradition to the United States to face charges for her willful failure to file tax returns for tax years 2011 through 2013 and naturalization fraud.
In addition to the term of imprisonment, U.S. District Judge Aileen M. Cannon ordered Gatta to serve one year of supervised release and to pay a $50,000 fine.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation and Homeland Security Investigations investigated the case.
Senior Litigation Counsel Sean Beaty and Trial Attorney Parker Tobin of the Justice Department’s Tax Division prosecuted the case.
Readout of U.S. Justice Department Senior Officials Trip to JamaicaRead the Press Release
On Feb. 6 and 7, Deputy Assistant Attorney General (DAAG) Arun G. Rao of the Civil Division’s Consumer Protection Branch and Associate Deputy Attorney General (ADAG) and U.S. Coordinator for Caribbean Firearms Prosecutions Michael P. Ben’Ary visited Kingston, Jamaica, to meet with senior officials from the Government of Jamaica and discuss security and law enforcement challenges and our shared interest in strengthening U.S.-Jamaican cooperation in these areas.
DAAG Rao and ADAG Ben’Ary speak to Jamaican Prime Minister Andrew Holness.
On this visit, they met with Jamaican Prime Minister Andrew Holness and his chief of staff to discuss our shared priorities of combating firearms trafficking and transnational fraud schemes connected to violence in Jamaica, as well as our commitment to further engagement and partnership on these important issues. They also met with U.S. Ambassador to Jamaica N. Nick Perry and other U.S. Embassy leadership and held a roundtable discussion with representatives of key U.S. government agencies based in Kingston focused on law enforcement issues.
While in Kingston, DAAG Rao and ADAG Ben’Ary spoke at the 2024 Security Seminar on “Organized Violence and the Threat to Peace in Jamaica and the Region,” sponsored by the Office of the National Security Advisor. Jamaican Prime Minister Holness and Deputy Prime Minister and Minister of National Security Horace Chang also delivered remarks at the conference. DAAG Rao highlighted the importance of international cooperation to successfully prosecuting those responsible for online fraud schemes and combating the violence associated with these criminal organizations. ADAG Ben’Ary highlighted the close security partnerships between U.S. and Jamaican law enforcement, the importance of firearms tracing to identify, disrupt, and dismantle firearms trafficking networks, and the steps that the Government of Jamaica and other Caribbean partners can take to increase joint efforts to counter illegal firearms trafficking.
DAAG Rao speaks about consumer frauds at Security Seminar in Kingston.
This visit by senior U.S. Justice Department officials follows Jamaican Prime Minister Holness’ visit to Washington, D.C. in December 2023 and reinforces our commitment to advance bilateral cooperation by combating transnational criminal organizations and the trafficking of drugs and firearms, strengthening cooperation to prevent online financial fraud schemes, and promoting regional security under Plan Secure Jamaica and the Caribbean Basin Security Initiative. Disrupting illicit firearms trafficking in the Caribbean is a shared priority for the United States and our Caribbean partners, and an important aspect of our cooperation to address rising levels of crime and violence in the region.
The longstanding U.S.-Jamaica relationship is built on mutual respect, common interests, and shared cooperation, and this visit helped build on that partnership. We look forward to continuing our productive relationship with Jamaican law enforcement in the mutually beneficial efforts to investigate and disrupt fraud networks and arms trafficking in Jamaica.
ADAG Ben’Ary provides overview on firearms trafficking at Security Seminar in Kingston.
Readout of Justice Department’s Procurement Collusion Strike Force’s Summit in Los AngelesRead the Press Release
Today, the Justice Department’s Antitrust Division, U.S. Attorney’s Office for the Central District of California and Procurement Collusion Strike Force (PCSF) hosted a summit where procurement officials and law enforcement partners from across Southern California convened to discuss emerging threats and raise awareness. U.S. Attorney (USA) Martin Estrada for the Central District of California, Deputy Assistant Attorney General (DAAG) Manish Kumar of the Justice Department’s Antitrust Division, PCSF Director Daniel Glad and law enforcement partners were joined by representatives from over a dozen state and local government agencies.
During the summit, USA Estrada and DAAG Kumar reflected on the PCSF’s growth and success since its inception in 2019. They also detailed additional resources the department has dedicated to combat procurement collusion, emphasized the importance of law enforcement partnerships and a whole-of-government response to persistent threats in government spending and sharpened the PCSF’s focus on the challenges, risks and opportunities posed by increased federal spending in Southern California.
Summit participants discussed the importance of defending critical programs under the Infrastructure Investment and Jobs Act, the Inflation Reduction Act of 2022 and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022 from procurement collusion risk. USA Estrada and DAAG Kumar also outlined the ways that state and local government agencies can partner with the PCSF to address these emerging threats. Summit participants included representatives from the FBI, Naval Criminal Investigative Service, Department of Commerce Office of Inspector General, Department of Veterans Affairs Office of Inspector General and the Defense Criminal Investigative Service.
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 the 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.
Justice Department Announces Plan to Administer Grant Funding Opportunities for Fiscal Year 2024 to Strengthen Community SafetyRead the Press Release
The Justice Department today announced its annual plan for making anticipated grant funding available this fiscal year to advance public safety activities and improve justice system outcomes. The Department is inviting community-based organizations; state, local, Tribal, and territorial government agencies, including law enforcement agencies; research institutions; and nonprofit entities to apply for funding from more than 200 grant programs, administered by its Office of Community Oriented Policing Services (COPS Office), Office of Justice Programs (OJP), and Office on Violence Against Women (OVW). As in prior years, the awards will be made later this year, subject to appropriations, and will build on almost $5.8 billion in grants awarded in Fiscal Year (FY) 2023.
“Every person, in every neighborhood, deserves to be safe and feel protected,” said Attorney General Merrick B. Garland. “In the coming year, the Justice Department plans to put more resources directly into the hands of our law enforcement and community partners working to drive down violent crime and improve public safety. We encourage police departments, community organizations, and other partners to apply for this funding through the Justice Department’s more than 200 grant programs.”
“These critical resources will make a profound difference in lives of Americans across the country, from funding more officers on the beat to helping survivors of domestic violence seek shelter,” said Deputy Attorney General Lisa O. Monaco. “Community-based organizations, crisis centers, law enforcement agencies, and more will benefit from these investments, and our communities will be safer because of them.”
Funding awarded by the Department’s three grantmaking components covers a wide range of public safety activities, from law enforcement hiring and community violence intervention to justice system-behavioral health partnerships, school safety measures, and programs designed to curb domestic violence, dating violence, sexual assault, and stalking. Program solicitations will invite proposals from eligible applicants for competitive and formula grant funding.
“The anticipated investments in this year’s Program Plan demonstrate the Justice Department’s continued commitment to helping our community and law enforcement partners across the country advance community safety, justice, and wellness,” said Acting Associate Attorney General Benjamin C. Mizer. “I am grateful to the dedicated employees in our three grantmaking offices who work hard every day to administer our grants and support applicants and grantees throughout the process.”
Published annually, the Justice Department Program Plan outlines funding opportunities that the Department intends to provide to enhance community safety and trust and improve the criminal, civil, and juvenile justice systems; assist victims of crime; provide training and technical assistance to state, local, Tribal, and territorial government agencies, as well as to community-based organizations; and conduct research and collect national statistics. The Program Plan provides summary details of the funding opportunities each grantmaking component has released or anticipates releasing this fiscal year. The Plan is searchable by component or office, keyword, eligible applicant category, and expected release date.
Funding amounts in the FY 2024 Plan and other relevant information are subject to the availability of appropriations and potential legislative changes and may be updated frequently. Potential applicants can request to be notified of the release of solicitations and of updates through email subscription services available from the COPS Office, OJP, and OVW.
To learn more about where to find DOJ funding opportunities and how to apply, visit the JustGrants Resources Application Submission Training page.
Information about FY 2023 awards can be found on the COPS Office, OJP, and OVW websites.
Founder and Former CEO of Sustainable Fuel Company Pleads Guilty to Multimillion Dollar Embezzlement and Investor Fraud SchemeRead the Press Release
The founder and former CEO of a sustainable fuel company pleaded guilty today to wire fraud in connection with a scheme to embezzle at least $5.9 million from the company and to defraud several investors out of $15 million.
According to court documents, between 2021 and 2022, Bryan Sherbacow, 55, of Charleston, South Carolina, and Washington, D.C., defrauded the company he co-founded by transferring company funds without authorization to his personal bank account and by making unauthorized personal expenditures from a company bank account. Sherbacow attempted to conceal his actions by, among other things, emailing altered bank statements and other falsified financial records to the company’s outside accounting firm and members of the company’s board. Sherbacow used embezzled funds to pay for, among other things, a vintage Mercedes-Benz sports car, a Range Rover sport utility vehicle, payments to an art auction operator, personal tax liens, personal credit card payments, rent payments on personal residences, payment to a beach club, electronics, and a down payment on a condo.
To raise additional funds for the company, Sherbacow also sent or caused to be sent altered bank statements and other falsified financial records to prospective and current investors. For example, Sherbacow caused a false and fabricated bank statement to be sent to two investors, in which Sherbacow intentionally removed transactions showing transfers from the company bank account to his personal bank account and falsified account balance information to make it appear that the company possessed more cash on hand than it possessed, due in part to Sherbacow’s unauthorized transfer of funds. Sherbacow also caused a balance sheet containing false and misleading financial information to be sent to another investor. In at least partial reliance on the fabricated bank statement and false and misleading financial information, three investors collectively invested approximately $15 million.
Sherbacow pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on May 16 and 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.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI Washington Field Office and the Defense Criminal Investigative Service, Charleston Resident Agency are investigating the case.
Trial Attorney Kyle Crawford of the Criminal Division’s Fraud Section is prosecuting the case.
Texas Man Charged with Filing Tax Returns that Falsely Reported His Cryptocurrency GainsRead the Press Release
A federal grand jury indicted a Texas man yesterday with filing false tax returns and structuring cash deposits to avoid currency transaction reporting requirements.
According to the indictment, between 2017 and 2019, Frank Richard Ahlgren III, of Austin, filed false tax returns that underreported or did not report the sale of $4 million worth of bitcoin in which he had substantial gains. All taxpayers are required to report any sale proceeds and gains or losses from the sale of cryptocurrency, such as bitcoin, on a tax return. In 2017, Ahlgren allegedly used the proceeds from the sale of approximately $3.7 million worth of bitcoin to purchase a residence. Ahlgren allegedly filed a false 2017 tax return that inflated the price he originally paid for the bitcoin, thereby underreporting his capital gain from the sale. In 2018 and 2019, Ahlgren allegedly sold bitcoin for more than $650,000, and allegedly failed to report his sales of bitcoin on his 2018 and 2019 tax returns.
The indictment also charges that after selling some of his bitcoin to an individual in exchange for cash, Ahlgren made a series of bank deposits of the cash in amounts less than $10,000 each to avoid triggering currency transaction reporting requirements.
Ahlgren faces a maximum penalty of five years in prison for each structuring count and three years in prison for each false return count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
IRS Criminal Investigation and the Texas Office of Attorney General are investigating the case.
Assistant Chief Michael C. Boteler and Trial Attorney Mary Frances Richardson of the Justice Department’s Tax Division and Assistant U.S. Attorney William R. Harris for the Western District of Texas 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.
Massachusetts Commercial Fisherman Pleads Guilty to Tax EvasionRead the Press Release
A Massachusetts man pleaded guilty today to evading taxes on income he earned as a commercial fisherman.
According to court documents and statements made in court, Rodolfo Membreno, of Fall River, worked as a commercial fisherman and deckhand operating primarily out of the Port of New Bedford. Membreno did not report over $1.3 million in income between 2013 and 2021. For 2013 to 2019, and again for 2021, Membreno did not file federal income tax returns or pay taxes. In 2020, he filed a false tax return that overstated business expenses. For 2012, Membreno filed a tax return but did not pay the tax that was due. To conceal his income, Membreno regularly cashed his paychecks from the fishing companies and used the cash to pay for personal expenses. In total, he caused a tax loss to the IRS of approximately $293,118.
Membreno is scheduled to be sentenced on May 15 and faces a maximum sentence of five years in prison. The defendant also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Ezra Spiro and Acting Chief John Kane of the Justice Department’s Tax Division and Assistant U.S. Attorney Victor Wild for the District of Massachusetts are prosecuting the case.
Justice Department Secures Agreement with Staffing Company to Resolve Claims of Employment DiscriminationRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with Latitude Inc. (Latitude), a staffing company in Hanover, Maryland. The agreement resolves the department’s determination that Latitude violated the Immigration and Nationality Act (INA) by discriminating against certain non-U.S. citizens with permission to work in the United States and excluding them from job opportunities based on their citizenship status.
“Companies cannot unlawfully exclude all non-U.S. citizens with permission to work in the United States from job opportunities based on their citizenship status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold accountable those who engage in such behavior that violates our nation’s federal civil rights laws.”
The department’s investigation determined that, from at least April 2022 through July 2023, Latitude refused to refer, recruit or hire any non-U.S. citizens for several positions with a client company that had requested the restriction without any legal basis. These actions harmed lawful permanent resident workers, non-citizen national workers and workers who have been granted asylum or refugee status by unlawfully deterring them from applying to and failing to advance those who did apply for further consideration in the hiring process.
Under the terms of the settlement, Latitude will train its personnel on the INA’s requirements, revise its employment policies and be subject to departmental monitoring and reporting requirements. Latitude will pay civil penalties to the United States.
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; retaliation and intimidation.
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 Gathers Stakeholders, Advocates for Inaugural National Elder Justice Law Enforcement SummitRead the Press Release
The Justice Department today convened the National Elder Justice Law Enforcement Summit, which represents the first national gathering of local, state, and federal law enforcement to focus on efforts to combat elder abuse, neglect, financial exploitation, and fraud.
During the two-day event, held at the U.S. Securities and Exchange Commission (SEC)’s headquarters in Washington, D.C., representatives from local, state, and national law enforcement organizations from around the country will join federal law enforcement representatives to discuss and learn about the various forms of elder abuse; identify promising practices, resources and tools available to state and local law enforcement; and foster greater collaboration between law enforcement and elder justice professionals to prevent, identify, and address elder abuse in their communities. Some of the specific topics to be addressed will include how dementia may impact elder abuse investigations; how to overcome challenges associated with investigating financial exploitation; how trauma impacts older victims and the importance of connecting older victims with services; and the unique challenge of investigating abuse and neglect committed against nursing home residents.
“Tragically, millions of older Americans suffer from some form of elder abuse each year,” said Acting Associate Attorney General Benjamin C. Mizer, who opened the event. “While the pandemic brought to light some of the most egregious elder abuses, we know that far too many cases still go unreported.”
In his remarks, the Acting Associate Attorney General emphasized the value of collaboration among all levels of law enforcement, adding: “While the Department is steadfast in our commitment to pursue elder justice, it’s clear that none of us can do this work alone. You are valued partners in the Department’s fight against elder abuse and fraud, and we continue to reap the benefits of working collaboratively with you.” He reiterated the Department’s commitment to supporting the critical work of state and local partners.
In October 2023, the Justice Department released its fifth Annual Justice Report to Congress, highlighting its ongoing efforts to root out heinous activity that strategically targets and exploits vulnerable, older populations. During the period covered by the report of July 2022 through June 2023, the Department pursued nearly 300 criminal and civil actions against more than 650 defendants who collectively stole more than $1.5 billion from over 2.4 million victims. Also noted in the report, the Department has returned hundreds of millions of dollars to victims of elder fraud schemes, while helping to freeze millions of dollars for other older victims before their funds were transferred to fraudsters. The Department also supported over 5,000 victim assistance organizations that provided services (including individual advocacy, crisis intervention, civil legal assistance, transportation, and emergency shelter) to over 240,000 victims aged 60 and older.
The Summit was organized by the Justice Department’s Elder Justice Initiative, with support from the Office for Victims of Crime and the Office of Community Orienting Policing Services. The event was also supported by members of the Elder Justice Coordinating Council, including the Securities and Exchange Commission, the Federal Trade Commission, the Consumer Financial Protection Bureau, and the Department of Health and Human Services Administration for Community Living.
To report elder financial fraud, call the National Elder Fraud Hotline, 1-833-FRAUD-11 (1-833-372-8311). For more information on the Department’s elder justice activities, visit the Department’s Elder Justice Website, where information on the Summit also is available.
El Departamento de Justicia llega a un acuerdo con una empresa de dotación de personal para resolver unas acusaciones de discriminación en el empleoRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Latitude Inc. (Latitude), una empresa de dotación de personal en Hanover, Maryland. El acuerdo resuelve la determinación del departamento que Latitude vulneró la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a ciertos no ciudadanos de los EE. UU. con permiso para trabajar en los Estados Unidos y los excluyó de oportunidades laborales con base en su estatus de ciudadanía.
«Las compañías no pueden excluir, de manera ilegal, a todo no ciudadano de los EE. UU. que tenga permiso para trabajar en los Estados Unidos de oportunidades laborales debido a estatus de ciudadanía», dijo Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá responsabilizando a aquellos cuyas acciones vulneren las leyes federales de derechos civiles de nuestra nación».
La investigación del departamento determinó que, desde al menos abril del 2022 hasta julio del 2023, Latitude se negó a recomendar, reclutar o contratar a no ciudadanos de los EE. UU. para varios puestos en una empresa cliente que había solicitado la restricción sin ninguna base jurídica. Estas acciones perjudicaron a los trabajadores que son residentes permanentes legales, a los trabajadores nacionales que no son ciudadanos y a los trabajadores a los que se les ha otorgado el asilo o el estatus de refugiado, al disuadirles, de manera ilícita, de presentar una solicitud y no avanzar por el proceso de contratación, para mayor consideración, a aquellos que sí solicitaron un trabajo.
En virtud de los términos del acuerdo, Latitude capacitará a su personal en cuanto a los requisitos de la INA, revisará sus políticas de empleo y que se someterá a los requisitos de supervisión y declaración departamentales. Por otra parte, Latitude pagará sanciones civiles a los Estados Unidos.
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.
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 IER.
Justice Department and Federal Partners Recognize Zero Tolerance Day for Female Genital MutilationRead the Press Release
The Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) joined federal partners, including U.S. Immigration and Customs Enforcement’s Human Rights Violators and War Crimes Center (HRVWCC) and the FBI’s International Human Rights Unit (IHRU), non-governmental organizations (NGOs), and others today in recognizing the International Day of Zero Tolerance for Female Genital Mutilation (FGM).
“Female genital mutilation, a form of gender-based violence and child abuse, will not be tolerated today — or any day — in the United States,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Justice Department and our law enforcement partners remain committed to holding perpetrators accountable and to providing support for victims of FGM using every tool available to us.”
“Female genital mutilation is a devastating crime affecting the lifelong emotional and physical wellbeing of survivors,” said Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division. “Ending this human rights abuse will take a multidisciplinary approach from law enforcement, including community outreach, education, and training. Today and every day, the FBI stands with women and girls against FGM and all forms of violence.”
“This international observance provides an opportunity to recognize this global issue, while raising awareness of those whose lives have been claimed or who have suffered life-long effects from this abhorrent practice,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “HSI, along with our global partners, is dedicated to ending this practice, advocating for victims, and bringing perpetrators to justice.”
Federal law enforcement agencies have engaged in many initiatives aimed at protecting those in the United States who have been subjected to, or who may be at risk of, FGM:
- The Justice Department’s Office of Victims of Crime awarded over $5 million in 2020 and 2021 in three-year grants through a grant program to support community projects designed to increase direct services, education, and community partner engagement to stop the victimization of women and girls through FGM. For more information, please see www.ojp.gov/sites/g/files/xyckuh241/files/media/document/ojp-news-10302020.pdf.
- Federal law enforcement authorities actively investigate allegations of FGM within the United States and abroad. Agencies collect tips and leads from the public and partner with NGOs that will relay information if they suspect a child is in imminent danger of being subjected to FGM or taken out of the country for purposes of FGM. Individuals suspected of FGM may be investigated by the HRVWCC and prosecuted by the Justice Department as appropriate.
- The FBI’s IHRU proactively conducts outreach to NGOs and provides frequent trainings to educate both the public and the FBI workforce on the FGM violation. These trainings provide awareness to the public about this form of abuse, which is a federal crime, as well as provide the FBI workforce the necessary tools to investigate and prevent instances of FGM.
- The Justice Department’s Office on Violence Against Women (OVW) administers federal grant funding authorized under the Violence Against Women Act to prevent and address sexual assault, domestic violence, and stalking. Funds from certain OVW grant programs may be used by grantees to provide culturally specific victim services and responses to FGM.
- HSI launched Operation Limelight USA, a premier FGM outreach and education program, in 2017, which has been recognized domestically and internationally as a critical outreach effort to combat FGM by the Women in Federal Law Enforcement and the World Class Policing Awards. Examples of other agency initiatives aimed at protecting women and girls at risk of FGM can be found in the STOP FGM Act 2022 Annual Report of the Attorney General.
FGM is a form of child abuse, a serious human rights violation, and, since 1996, a federal crime in the United States. In 2013, Congress amended the federal FGM statute, 18 U.S.C. § 116, to prohibit taking a girl out of the United States for the purpose of performing FGM. In 2021, the STOP FGM Act 2020 was signed into law, strengthening existing law by expanding the scope of punishable acts and increasing the maximum penalty. Violations of this law may result in imprisonment and potential removal from the United States.
According to UNICEF, more than 200 million women and girls have been subjected to FGM, which refers to procedures that injure the female genital organs for non-medical reasons. While primarily concentrated in North, West, and Central Africa, as well as parts of the Middle East and Asia, FGM also occurs in the United States.
Established in 2008, the HRVWCC furthers HSI’s efforts to identify, locate, and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, FGM, and the use or recruitment of child soldiers. The HRVWCC leverages the expertise of a select group of agents, lawyers, intelligence and research specialists, historians, and analysts who direct the agency’s broader enforcement efforts against these offenders.
Members of the public who have information about victims or suspected perpetrators engaging in FGM or other human rights abuses are urged to call the FBI tip line at 1-800-CALL-FBI (800-225-5324) or the HSI tip line at (866) 347-2423. To submit a tip online, visit tips.fbi.gov or the HSI online form. Tips may be provided anonymously.
United States and Commonwealth of Massachusetts Announce Settlement with City of Lowell to Address Pollution in Merrimack RiverRead the Press Release
The Justice Department, Environmental Protection Agency (EPA) and Commonwealth of Massachusetts announced a settlement agreement with the City of Lowell, Massachusetts, requiring the city to reduce sewage discharges into the Merrimack River. Under the consent decree, Lowell will pay a $200,000 penalty for past violations.
A portion of Lowell’s wastewater collection system consists of sewers that convey sanitary sewage and stormwater runoff in a single pipe. During wet weather, untreated combined sewage is discharged through combined sewer overflow (CSO) outfalls to the Merrimack River and its tributaries, including Beaver Brook and the Concord River. The Merrimack River is a drinking water source for several downstream communities. Today’s settlement requires work to separate wastewater and stormwater, which will minimize the number of times untreated sewage is released into nearby waters.
Lowell will also implement a program to detect and eliminate illicit connections that discharge wastewater to the city’s stormwater system thereby reducing pollution in stormwater that flows into local streams and rivers. Lowell must also establish and implement city ordinances to help prevent stormwater runoff from construction and post construction sites.
The total cost to update the sewer system has been estimated at approximately $195 million.
This consent decree was the result of a joint enforcement action brought by the Justice Department on behalf of the EPA, and the Massachusetts Attorney General’s Office, on behalf of the Massachusetts Department of Environmental Protection.
“Today’s settlement will result in cleaner and healthier water for the residents of Lowell and downstream communities, including some with environmental justice concerns, that rely on the Merrimack River for drinking water,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Justice Department is committed to upholding our nation’s water protection laws for the benefit all.”
“For far too long the city of Lowell, Massachusetts has failed to protect the communities that rely on the Merrimack River and other water sources for their drinking water,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement demonstrates EPA’s commitment to ensure cities and towns meet their obligations under the Clean Water Act to prevent the overflow of sewage, pollutants, and debris into our nation’s waterways.”
“With this consent decree, the City of Lowell is taking necessary steps to further protect Lowell’s historic river ecosystem and improve the quality of the Merrimack River for its residents,” said Massachusetts Attorney General Andrea Joy Campbell. “These measures are critical as we continue our work to ensure that all of our residents live in a healthy and safe environment.”
“We are proud to have worked alongside our colleagues at the Attorney General’s Office and with our federal partners to make significant progress toward reducing contamination in the Merrimack River,” said Commissioner Bonnie Heiple of the Massachusetts Department of Environmental Protection. “The Healey-Driscoll Administration is committed to addressing complex issues like combined sewer overflows head-on, using all available tools – including technical support, funding and enforcement – to promote better environmental and public health outcomes.”
“This settlement is good news for Lowell and for communities downstream who will be better able to enjoy healthful activities on and near the Merrimack River. The Merrimack flows through several historically disadvantaged communities, so this settlement is especially important for ensuring that all citizens can enjoy a clean and healthy environment,” said EPA New England Regional Administrator David W. Cash. “EPA is committed to continuing our work to ensure that Massachusetts and New Hampshire citizens along the Merrimack River have clean and safe water. The timing of this is fortunate, as funding assistance available in the Bipartisan Infrastructure Law may help defray costs borne by local ratepayers.”
Lowell owns and, through the Lowell Regional Wastewater Utility, operates the Duck Island Clean Water Facility, a 32 million gallon per day secondary wastewater treatment facility that discharges to the Merrimack River. The treatment facility treats wastewater not only from Lowell but also from the towns of Chelmsford, Dracut, Tewksbury and Tyngsboro, Massachusetts.
Lowell had previously signed a consent decree with the federal government and the Commonwealth of Massachusetts in 1988 to address its illegal CSO discharges. While several interim actions have taken place, Lowell has not yet fully complied with the federal and state environmental statutes. More information on EPA’s efforts to address water quality issues can be found on the agency’s Merrimack River website.
The Justice Department’s Environmental Enforcement Section filed today’s proposed consent decree in U.S. District Court for the District of Massachusetts. It is subject to a 30-day public comment period and court approval. A copy of the consent decree will be available on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.
Texas Man Sentenced to 41 Months in Prison for Tax EvasionRead the Press Release
A Texas man was sentenced today to 41 months in prison for evading his taxes by not reporting income he earned while working overseas.
According to court documents and statements made in court, from 2013 to 2018, Peter Joseph Tignini, formerly of Cypress, Texas, worked in the United Arab Emirates and Qatar, earning over $4,750,000 in income. For tax years 2013 through 2017, Tignini filed false tax returns that claimed that his income was only approximately $100,000 each year. The amount Tignini reported each year was near or below the amount that U.S. citizens who live and work abroad for most of a year can exclude from their taxable income on their U.S. tax return. Tignini did not file a return for 2018. As a result, Tignini caused a tax loss to the IRS of $1,169,348.
Following an interview with federal law enforcement, Tignini altered his employment contract and payroll documents to make it appear that his former employer, not Tignini himself, was responsible for failing to report the income and pay the tax. Tignini then caused his attorneys to provide the false documents to the Justice Department’s Tax Division and the IRS. After investigators asked a witness about the online program Tignini used to create the phony documents, Tignini attempted to delete the documents from his account.
In addition to the term of imprisonment, U.S. District Court Judge George C. Hanks ordered Tignini to serve three years of supervised release and to pay $1,169,348.60 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas and Special Agent in Charge Ramsey E. Covington of IRS-Criminal Investigation Houston Field Office made the announcement.
IRS Criminal Investigation investigated the case.
Senior Litigation Counsel Sean Beaty and Trial Attorney Brian Flanagan of the Tax Division, and Assistant U.S. Attorney Adam Goldman for the Southern District of Texas are prosecuting the case.
Man Sentenced for Unlawful Firearm PossessionRead the Press Release
Acting United States Attorney Susan Lehr announced that Drew T. Frost, 41 of Omaha, Nebraska was sentenced January 25, 2024, in federal court in Omaha, for being a felon in possession of a firearm. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Frost to 41 months’ imprisonment. There is no parole in the federal system. After Frost’s release from prison, he will begin a 3-year term of supervised release.
On August 1, 2022, an ATF confidential source made a controlled buy of a Mossberg 12-gauge shotgun from Frost, who is a convicted felon. The confidential source, equipped with audio and video recording devices, drove to a meet location on the 42nd block of Frances Street (Frost’s residence). Frost came out of his apartment and entered the confidential source’s vehicle.
The confidential source gave Frost $360 of ATF buy fund money in exchange for the shotgun. Frost was previously convicted of Theft by Shoplifting (April 17, 2015), in the District Court of Lancaster County, Nebraska which is a felony. He is prohibited from possessing firearms.
The Mossberg 12-gauge shotgun was manufactured outside of Nebraska.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.