District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Three Nevada Men Sentenced in Multimillion-Dollar Prize Notice SchemeRead the Press Release
Three men were sentenced on Friday in Las Vegas for perpetrating a prize-notification scheme that stole more than $10 million from elderly and vulnerable victims.
Mario Castro, 55, of Las Vegas, was sentenced to 240 months in prison. Miguel Castro, 58, of Las Vegas, was sentenced to 235 months in prison. Jose Luis Mendez, 49, of Henderson, Nevada, was sentenced to 168 months in prison. In April, a jury found the three men guilty of conspiracy to commit mail fraud and multiple individual counts of mail fraud.
According to court documents and evidence presented at trial, the three defendants and other co-conspirators printed and mailed millions of fraudulent prize notices that led their victims to believe that they could claim a large cash prize if they paid a fee of about $20 to $25. This was false; victims who paid the fees did not receive anything of value. Once victims fell prey to the scheme, the defendants bombarded them with more fraudulent prize notices. The defendants produced the fake prize notices at their warehouse in Las Vegas. The defendants received millions of dollars of money from victims.
“For eight years, Mario Castro, Miguel Castro, and Jose Luis Mendez used lies and deceit to steal from the elderly and vulnerable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The jury’s verdict and the sentences hold them accountable for their predatory conduct. The department is committed to protecting consumers from mass-mailing schemes.”
The defendants operated the scheme from 2010 to February 2018, when postal inspectors executed multiple search warrants and the Justice Department obtained a court order shutting down the fraudulent mail operation. Mario Castro, Miguel Castro and Jose Luis Mendez worked at the printing and mailing businesses that sent the fraudulent mail and shared the profits from the fraudulent prize notices. The defendants and their co-conspirators ignored multiple cease and desist orders from the U.S. Postal Service that prohibited their mailing companies from sending fraudulent mail. The defendants responded to the cease and desist orders by changing the names of their companies and using straw owners to hide their continuing fraud.
“These defendants took part in a conspiracy that preyed upon and deceived elderly consumers with repeated promises of large cash prizes,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “We are committed to working with the Consumer Protection Branch and U.S. Postal Inspection Service to protect vulnerable members of our community, and to investigate and prosecute fraudsters who target seniors.”
“Postal Inspectors are steadfast in our dedication to protecting the American people from prize-notice schemes and other mail fraud schemes, especially those that target seniors and their hard-earned savings” said Inspector in Charge Eric Shen of the Criminal Investigations Group of the U.S Postal Inspection Service (USPIS). “We work to rid the mail stream from fraudulent mass mailing solicitations and make the mail safe for all.”
Four other people previously pleaded guilty to conspiracy to commit mail fraud in connection with this prize notice scheme: Patti Kern, 65, of Henderson; Andrea Burrow, 43, of Las Vegas; Edgar Del Rio, 45, of Las Vegas; and Sean O’Connor, 54, of Las Vegas.
The USPIS investigated the case.
Trial Attorneys Timothy Finley and Daniel Zytnick of the Civil Division's Consumer Protection Branch and Assistant U.S. Attorney Mina Chang for the District of Nevada prosecuted the case.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Nevada visit www.justice.gov/usao-nv. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Russian International Money Launderer Arrested for Illicitly Procuring Large Quantities of U.S.-Manufactured Dual-Use Military Grade Microelectronics for Russian ElitesRead the Press Release
Maxim Marchenko, 51, a Russian citizen who has resided in Hong Kong, was charged today in connection with conspiring to defraud the United States and with smuggling, wire fraud, and money laundering offenses based on his alleged participation in a scheme to unlawfully procure U.S.-sourced, dual-use microelectronics with military applications on behalf of end users in Russia.
“According to the complaint, Marchenko employed a web of shell companies as part of an overseas smuggling ring to ship dual-use U.S. technology with military applications to Russia in contravention of U.S. law,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s action reinforces the Department’s commitment to protect U.S. security and counter Russian aggression in Ukraine through the vigorous enforcement of our export control laws.”
“As alleged, Maxim Marchenko participated in an illicit procurement network that provided military grade microelectronics to end users in Russia,” said U.S. Attorney Damian Williams for the Southern District of New York. “Following Russia’s unjust invasion of Ukraine, Marchenko and his co-conspirators are alleged to have used shell companies and other deceptive measures in order to secure U.S.-manufactured microelectronics, with applications including in rifle scopes, night-vision goggles, thermal optics, and weapon systems, for use by Russians. This office will relentlessly pursue those who seek to flout U.S. law in order to supply Russia with military technology.”
“Today’s charges demonstrate the FBI’s ability to leverage its international presence and partnerships to stop the illegal transfer of dual-use technology to Russia,” said Executive Assistant Director Larissa L. Knapp of the FBI's National Security Branch. “As alleged in the charges, Marchenko and his co-conspirators engaged in an elaborate, fraudulent scheme to smuggle military-grade technology with the potential to harm U.S. national security. The FBI and our partners will never waver in our commitment to keep Americans safe.”
“We are laser-focused on rooting out the procurement networks fueling the Russian war machine,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Working hand-in-hand with our federal law enforcement partners, we will continue to identify and disrupt Russia’s use of front companies in the People’s Republic of China and elsewhere to evade our controls.”
“Disrupting the efforts of facilitators and procurement agents like Marchenko, who use their skills and connections to advance the agenda of the Russian war machine, is one of the most important priorities of this task force. Today’s arrest should serve as another reminder that we will leverage and deploy every tool to bring these criminals to justice,” said Task Force KleptoCapture Co-Director David Lim.
According to court documents, Maxim Marchenko is a Russian national who resides in Hong Kong and operates several Hong Kong-based shell companies, including Alice Components Co. Ltd. (Alice Components), Neway Technologies Limited (Neway) and RG Solutions Limited (RG Solutions). Marchenko and two co-conspirators (CC-1 and CC-2), who are also Russian nationals, have operated an illicit procurement network in Russia, Hong Kong and elsewhere overseas. This procurement network has fraudulently obtained from U.S. distributors large quantities of dual-use, military grade microelectronics, specifically OLED micro-displays, on behalf of Russia-based end users. To carry out this scheme, Marchenko, CC-1 and CC-2 used shell companies based in Hong Kong and other deceptive means to conceal from U.S. Government agencies and U.S. distributors that the OLED micro-displays were destined for Russia. The technology that Marchenko and his co-conspirators fraudulently procured have significant military applications, such as in rifle scopes, night-vision googles, thermal optics and other weapon systems.
To perpetrate the scheme, Marchenko and other members of the conspiracy acquired the dual-use OLED micro-displays from U.S.-based distributors using Marchenko’s Hong Kong-based shell companies, including Alice Components, Neway and RG Solutions. Members of the conspiracy, including Marchenko, procured these sensitive microelectronics by falsely representing to the U.S. distributors (who, in turn, are required to report to U.S. agencies) that Alice Components was sending the shipments to end users located in China, Hong Kong and other countries outside of Russia for use in electron microscopes for medical research. In reality, the OLED micro-displays were destined for end users in Russia. Marchenko and other members of the conspiracy concealed the true final destination (Russia) from U.S. distributors for the purpose of causing false statements to the U.S. agencies.
To conceal the fact that these OLED micro-displays were destined for Russia, Marchenko and other members of the conspiracy worked together to transship the illicitly procured OLED micro-displays by using pass-through entities principally operated by Marchenko in third countries, such as Hong Kong. Marchenko then caused the OLED micro-displays to be shipped to the ultimate destination in Russia using, among other entities, a freight forwarder known to provide freight forwarding services to Russia. In addition, Marchenko and other members of the conspiracy used Hong Kong-based shell companies, principally operated by Marchenko, to conceal the fact that payments for the OLED micro-displays were coming from Russia. In total, between in or about May 2022 and in or about August 2023, Marchenko’s shell companies funneled a total of more than $1.6 million to the United States in support of the procurement network’s efforts to smuggle the OLED micro-displays to Russia.
Marchenko is charged with conspiracy to defraud the United States, which carries a maximum penalty of five years in prison; conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison; conspiracy to smuggle goods from the United States, which carries a maximum penalty of five years in prison; money laundering, which carries a maximum penalty of 20 years in prison; smuggling goods from the United States, which carries a maximum penalty of 10 years in prison; conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison; and wire fraud, which carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. sentencing guidelines and other statutory factors.
The FBI and Commerce Department’s Bureau of Industry and Security are investigating the case. The FBI Legal Attaché in Australia; U.S. Department of State’s Diplomatic Security Service (DSS); and the Justice Department’s Office of International Affairs provided valuable assistance.
The Southern District of New York is prosecuting the case, with assistance from the National Security Division’s Counterintelligence and Export Control Section.
Today’s actions were coordinated through the Justice Department’s Task Force KleptoCapture and the Justice and Commerce Departments’ Disruptive Technology Strike Force. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Marchenko complaintOmaha Man Sentenced to 5 Years for Possession of a FirearmRead the Press Release
Acting United States Attorney Susan Lehr announced that James E. Williams, 50, of Omaha, Nebraska, was sentenced on September 15, 2023, in Omaha by Chief United States District Judge Robert F. Rossiter, Jr. for possessing a firearm in furtherance of a drug trafficking crime. Williams was sentenced to 60 months in prison and will also serve two years on supervised release. There is no parole in the federal system.
On April 12, 2021, Williams sold to a cooperating witness working with law enforcement 3.6 grams of cocaine and two firearms, a Colt M4 Carbine .22 caliber rifle and an Iver Johnson .38 caliber revolver. The transaction, which was audio and video recorded, occurred inside a garage of an Omaha residence.
This case was investigated by the Omaha Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Man Sentenced for Drug ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that Lorenzo Gonzalez-Perez, 25, was sentenced on September 15, 2023, in federal court in Omaha, Nebraska, for his participation in a methamphetamine and fentanyl drug conspiracy. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Gonzalez-Perez to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release.
Beginning in August 2021 and continuing to November 4, 2021, Gonzalez-Perez agreed with others to distribute and possess with intent to distribute over 50 grams of methamphetamine actual and over 100 grams of fentanyl analogue.
On October 18, 2021, Utah Highway Patrol troopers stopped a red Dodge Charger due to a malfunctioning rear license plate light and illegal window tint. The car was driven by co-defendant Giovanna Cisneros and Gonzalez-Perez was a passenger.
Troopers conducted a free air sniff with a K-9 who alerted to the smell of narcotics. As a result, a probable cause search of the Charger was conducted by the state trooper. Inside the trunk was a luggage bag that contained two tin foil wrapped packages. Those packages contained round blue pills stamped ‘M 30.’ The bags weighed approximately 5 pounds and lab tested positive for fentanyl.
Cisneros admitted to the trooper that she was transporting the pills and would receive between $6,000-$7,000 for the trip. She further admitted she was transporting the narcotics for others. Cisneros also advised officers that Gonzalez-Perez was not to receive money for the trip due to being in trouble with others involved in the conspiracy.
Prior to the trip, intercepted phone calls on October 13, 2021, indicated that Cisneros and Gonzalez-Perez were working at the direction of Mayra Rendon. During the phone calls, Rendon informed Emidio Becerra that she was looking for Gonzalez-Perez after he failed to answer his phone after a drug proceeds pick up. Rendon told Becerra she needed someone to drive to California to pick up the pills. Ultimately, Cisneros and Gonzalez-Perez were instructed to make the trip.
Mayra Rendon pled guilty to drug conspiracy and was sentenced on September 15, 2022, to 210 months custody followed by 5 years of supervised release.
Colleen Wiand pled guilty to drug conspiracy and was sentenced on October 28, 2022, to 97 months custody with 3 years of supervised release to follow.
Darbelio Lorenzo-Genchi and Iris Gallardo-Salado each pled guilty to drug conspiracy and were sentenced on March 6, 2023, and February 17, 2023, respectively, to 96 months custody with 2 years of supervised release to follow.
Samantha Cawyer pled guilty to drug conspiracy and was sentenced to 72 months with 3 years of supervised release on August 25, 2023.
Giovana Cisneros pled guilty to drug conspiracy. Sentencing is scheduled for October 12, 2023.
Emidio Becerra and Oscar Ulises Quiroz Ayon are scheduled for trial on September 25, 2023.
This case was investigated by the Omaha Police Department and Drug Enforcement Administration.
Fort Myers Roofing Contractors Sentenced to Prison for Evading over $1.1 Million in TaxesRead the Press Release
Two Florida businessmen, David Aaron and Russell Ultes, were sentenced today to 18 months and nine months in prison, respectively, for a scheme to evade over $1.1 million in income taxes.
According to court documents and statements made in court, Aaron and Ultes were co-owners of Marlin Construction Group LLC (Marlin), a Fort Myers-based residential and commercial roofing company. In 2018 and 2019, Aaron and Ultes diverted millions of dollars of customer checks made payable to Marlin, by cashing them at check-cashing businesses in nearby counties. Aaron and Ultes used the cash to pay personal expenses, such as the purchase of jet-skis, boats and vehicles.
To carry out the scheme, Aaron and Ultes caused Marlin’s books and records to falsely underreport the business’s gross receipts and income for those years. Aaron and Ultes provided false information to Marlin’s tax return preparers, resulting in the preparation of false 2018 and 2019 corporate income tax returns (Forms 1120S) that did not report all gross receipts and income. Because the income from the false corporate returns flowed through to Aaron and Ultes’s personal returns, their 2018 and 2019 personal income tax returns (Forms 1040) were similarly false. In total, Aaron and Ultes caused a tax loss to the IRS of over $1.13 million.
U.S. District Judge Sheri P. Chappell for the Middle District of Florida also ordered that, in addition to their prison sentences, Aaron serve three years of supervised release and pay a $50,000 fine and that Ultes serve nine months of home confinement, followed by three years of supervised release and pay a $75,000 fine.
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.
Senior Litigation Counsel Stanley J. Okula Jr. and Trial Attorney Richard J. Hagerman of the Tax Division prosecuted the case with support from the U.S. Attorney’s Office for the Middle District of Florida.
Foreign National Extradited from Mexico to the United States to Face International Cocaine and Methamphetamine Trafficking ChargesRead the Press Release
A Mexican national made his initial appearance in the U.S. District Court for the District of Columbia today to face international cocaine and methamphetamine trafficking and weapons charges.
On July 19, 2021, a grand jury in the District of Columbia returned an indictment against Edgar Fabian Villasenor Garcia, aka Gary and el Monje, 52. At the time of his indictment, Villasenor Garcia was already in Mexican custody, having been arrested by Mexican authorities on April 2, 2020, based on local charges. While in Mexican custody, Villasenor Garcia was served with a separate warrant based on a U.S. extradition request, and he remained detained in Mexico pending his extradition. He was extradited from Mexico to the United States on Sept. 15.
Villasenor Garcia is charged with one count of conspiracy to distribute five kilograms or more of cocaine and 500 grams or more of methamphetamine, knowing and intending and having reasonable cause to believe that those controlled substances would be unlawfully imported into the United States. He is also charged with knowingly and intentionally using, carrying, and brandishing a firearm in the furtherance of drug trafficking crimes. If convicted, Villasenor Garcia faces a mandatory minimum of 10 years in prison and a statutory maximum penalty of life in prison.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and Drug Enforcement Administration (DEA) Administrator Anne Milgram made the announcement.
The DEA’s Los Angeles Division investigated the case.
Trial Attorney Kate Naseef of the Criminal Division’s Narcotic and Dangerous Drug Section is prosecuting the case. The Justice Department’s Office of International Affairs, the Office of Enforcement Operations, and the U.S. Marshals Service provided substantial assistance in 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.
Two Foreign Nationals Sentenced for Human Smuggling ConspiracyRead the Press Release
Two Guatemalan nationals were sentenced this week in the Western District of Texas for their role in a prolific human smuggling conspiracy that resulted in the death of a migrant.
Armando Gael Galicia, aka Artemio Diego Andres Gonzalez, aka Luis Moreno-Gonzalez, 27, was sentenced today to 17 years and six months in federal custody. Jose Diego Tercero-Gonzalez, 23, was sentenced on Sept. 14 to 15 years and eight months in federal custody.
According to court documents, Gael Galicia and Tercero-Gonzalez were responsible for smuggling a young indigenous Guatemalan woman. In May 2021, her body was discovered in a remote area outside of Odessa, Texas. In August 2021, Gael Galicia and Tercero-Gonzalez were arrested near the trailer where the victim was taken and died. Inside the trailer were additional migrants who had entered the country unlawfully.
The case is related to the recent guilty pleas of Felipe Diego Alonzo, Nesly Norberto Martinez Gomez, Lopez Mateo Mateo, and Juan Gutierrez Castro for their involvement in the Guatemala-based human smuggling conspiracy that led to the young woman’s death.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Jaime Esparza for the Western District of Texas, Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI), and Senior Official Performing the Duties of the Commissioner Troy Miller of Customs and Border Protection (CBP) made the announcement.
This investigation was coordinated through Joint Task Force Alpha (JTFA). JTFA was created in June 2021 by Attorney General Merrick B. Garland, in partnership with Department of Homeland Security (DHS) Secretary Alejandro N. Mayorkas, to strengthen the Justice Department’s efforts to combat the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse, or exploit migrants, present national security risks, or engage in other types of transnational organized crime.
HSI Midland investigated the case, working in concert with HSI Guatemala and the HSI Human Smuggling Unit in Washington, D.C. HSI received substantial assistance from U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations, ICE’s Parole and Law Enforcement Programs Unit, U.S. Customs and Border Protection’s National Targeting Center/Operation Sentinel, U.S. Border Patrol, U.S. Marshals Service, the Odessa and Midland Police Departments, the Texas Department of Public Safety, and the Ector County, Midland County, and Crane County Sheriffs’ Offices. The Criminal Division’s Office of International Affairs (OIA), and Office of Prosecutorial Development, Assistance, and Training (OPDAT) provided significant assistance in this matter.
JTFA Co-Director James Hepburn of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys John Fedock and Jose Luis Acosta for the Western District of Texas are prosecuting the case, with assistance from HRSP Historian/Latin America Specialist Joanna Crandall and Trial Attorney Daria Andryushchenko of the Criminal Division's Money Laundering and Asset Recovery Section. Former Assistant U.S. Attorney Glenn Harwood for the Western District of Texas provided substantial assistance. The Justice Department thanks Guatemalan law enforcement, who were instrumental in furthering this investigation.
Since its creation, JTFA has successfully increased collaboration between the Justice Department, DHS, and other interagency law enforcement participants, and with foreign law enforcement partners, including in El Salvador, Guatemala, Honduras, and Mexico; targeted those organizations who have the most impact on the United States; and coordinated significant smuggling indictments and extradition efforts in U.S. Attorneys’ Offices across the country resulting in over 250 domestic and international arrests. JTFA is comprised of detailees from southwest border, U.S. Attorneys’ Offices, including the Southern District of Texas, Western District of Texas, District of New Mexico, District of Arizona, and Southern District of California, and dedicated support for the program is also provided by numerous components of the Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section, and supported by OPDAT, the Narcotic and Dangerous Drug Section, the Money Laundering and Asset Recovery Section, the Office of Enforcement Operations, OIA, and the Organized Crime and Gang Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, DEA, and other partners.
Three Defendants Convicted of Federal Civil Rights Conspiracy and Freedom of Access to Clinic Entrances (FACE) Act Offenses for Obstructing Access to a Reproductive Health Services FacilityRead the Press Release
A federal jury convicted three defendants of charges of federal civil rights offenses in connection with the Oct. 22, 2020, invasion of a reproductive health care clinic in Washington, D.C.
According to evidence presented at trial, Jonathan Darnel, 41, of Arlington, Virginia; Jean Marshall, 73, of Kingston, Massachusetts; and Joan Bell, 74, of Montague, New Jersey, engaged in a conspiracy to create a blockade at the reproductive health care clinic to prevent the clinic from providing, and patients from receiving, reproductive health services. As part of the conspiracy, Marshall and Bell traveled to the Washington, D.C. area to meet with Darnel and participate in a clinic blockade that was directed by another co-conspirator and broadcast on Facebook.
According to evidence presented at trial, Marshall and Bell were among a group that forcefully entered the clinic and blockaded two clinic doors using their bodies, furniture, chains and ropes. Once the blockade was established, Darnel – who remained outside the clinic – live-streamed their activities on social media. The evidence also showed that the defendants violated the FACE Act by using a physical obstruction to injure, intimidate and interfere with the clinic’s employees and a patient because they were providing or obtaining reproductive health services.
The defendants each face a maximum penalty of 11 years in prison, followed by three years of supervised release and a fine of up to $350,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. District Court Judge Colleen Kollar-Kotelly, who presided over the trial, ordered the defendants immediately detained as required by statute. Sentencing will be scheduled at a later date.
Five additional co-conspirators were convicted in August on the same counts. Lauren Handy, 28, of Alexandria, Virginia; John Hinshaw, 67, of Levittown, New York; Healther Idoni, 61, of Linden, Michigan; William Goodman, 52, of the Bronx, New York; and Herb Geraghty, 25, of Pittsburgh, were also convicted of felony conspiracy against rights and a FACE Act offense. One co-defendant, Jay Smith, pleaded guilty and was sentenced to 10 months in prison. Another co-defendant, Paulette Harlow, is awaiting trial on similar charges.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Matthew M. Graves for the District of Columbia and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI Washington Field Office is investigating this case, with assistance from the FBI Field Offices in Pittsburgh, Newark, New York City, Boston and Detroit and the Metropolitan Police Department.
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of Columbia’s Public Corruption and Civil Rights Section are prosecuting this case, with valuable assistance from the U.S. Attorneys’ Offices for the District of New Jersey, District of Massachusetts, Eastern District of Michigan, Eastern District of New York and Southern District of New York.
Statement from Attorney General Merrick B. Garland on the Extradition of Ovidio Guzman Lopez from Mexico to the United StatesRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the extradition of Ovidio Guzman Lopez, son of Joaquin Guzman Loera, aka “El Chapo,” from Mexico to the United States:
“Today, as a result of United States and Mexico law enforcement cooperation, Ovidio Guzman Lopez, a leader of the Sinaloa Cartel was extradited to the United States. This action is the most recent step in the Justice Department’s effort to attack every aspect of the cartel’s operations. The fight against the cartels has involved incredible courage by United States law enforcement and Mexican law enforcement and military servicemembers, many of whom have given their lives in the pursuit of justice. I am grateful to them and to the Department’s prosecutors for their work and their sacrifice. I am also grateful to our Mexican government counterparts for this extradition. The Justice Department will continue to hold accountable those responsible for fueling the opioid epidemic that has devastated too many communities across the country.”
Readout of Assistant Attorney General Kristen Clarke’s Trip to AlabamaRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Fairfield and Birmingham, Alabama, from Sept. 14-15.
On Thursday, Assistant Attorney General Clarke gave the keynote address at the Honors Convocation at Miles College, a Historically Black College in Fairfield that was founded 125 years ago with roots in the Christian Methodist Episcopal Church. In her remarks, she highlighted the college’s esteemed alumni, lauded the accomplishments of the students and detailed the Justice Department’s work to protect civil rights. Read her full remarks here.
In the afternoon, Assistant Attorney General Clarke, along with U.S. Attorney Prim Escalona for the Northern District of Alabama, traveled to Birmingham to participate in a community meeting hosted by the Birmingham Civil Rights Institute and the Alpha Phi Alpha Fraternity Inc. Omicron Lambda Chapter. During the meeting, she discussed the department’s efforts to combat hate crimes, protect voting rights and ensure law enforcement accountability .
Assistant Attorney General Clarke also met with the U.S. Attorney’s Office for the Northern District of Alabama’s staff. She thanked the office’s leadership and staff for their service and continued commitment to protecting civil rights.
On Friday, Assistant Attorney General Clarke delivered remarks at the 16th Street Baptist Church in Birmingham to commemorate the 60th anniversary of the horrific bombing that killed four Black girls, Addie Mae Collins, Denise McNair, Carole Robertson and Cynthia Wesley. In her remarks, she reflected on the tragic bombing, the history of hate in society and the Justice Department’s continued efforts to hold those who commit unlawful acts of race-based violence accountable. Read her full remarks here.
Assistant Attorney General Clarke concluded the trip at Ramsay IB High School, a predominantly Black public school known for its exceptional and high-performing student body. There, she met the principal, Dr. Carolyn Russell-Walker, as well as school leadership. She spoke with students about pursuing careers in public service and encouraged them to continue to achieve excellence in education.
Navmar to Pay $4.4 Million to Settle False Claims Act Allegations Regarding Double-billing and Cost-ShiftingRead the Press Release
Navmar Applied Sciences Corporation (Navmar), headquartered in Pennsylvania, has agreed to pay $4.4 million to resolve allegations that it violated the False Claims Act by knowingly double billing and shifting certain labor and material costs under a series of contracts with the Department of the Navy (Navy) to manufacture, design and test emerging intelligence, surveillance and reconnaissance technologies.
The United States alleged that Navmar knowingly billed certain labor and material costs on one Navy contract, subsequently billed the same costs on another contract and was therefore paid twice for the same costs. The United States further alleged that Navmar knowingly and improperly shifted material costs incurred under certain contracts to other contracts in violation of the Federal Acquisition Regulation requirement that costs incurred under a contract be allocable to that contract, resulting in Navmar recovering costs it otherwise would not have.
“Companies that do business with the government must ensure that they are properly billing the government for the goods or services that they provide,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who misuse taxpayer funds for their own self-enrichment.”
“This settlement demonstrates the Justice Department’s commitment to take appropriate action when it determines that taxpayer dollars have been double-billed and improperly accounted for,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “Cases such as this one should be seen as a warning to defense contractors that false claims have no place in military purchasing.”
“Investigating allegations of cost mischarging on Department of Defense (DoD) contracts is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DoD Office of Inspector General,” stated Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “The DCIS is committed to working with the Naval Criminal Investigative Service (NCIS) and the Justice Department to protect the integrity of the DoD procurement process. The Defense Contract Audit Agency’s Operations Investigative Support Division provided valuable expertise during this investigation.”
“Procurement fraud threatens military readiness and therefore poses a significant threat to our national security,” said Special Agent in Charge Greg Gross of the NCIS Economic Crime Field Office. “NCIS remains committed to ensuring the good stewardship of U.S. taxpayer dollars by thoroughly investigating all allegations of fraud that damage the integrity of the Department of the Navy procurement process.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with assistance from the DCIS, NCIS, Defense Contract Audit Agency and Defense Contract Management Agency.
The matter was handled by Trial Attorney K.L. Grace Moseley of the Justice Department's Civil Division and Assistant U.S. Attorneys Landon Jones and Mark Sherer for the Eastern District of Pennsylvania.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
navmar_settlement_agreement_executed_sept_15_2023.pdfTexas Man Pleads Guilty to Hate Crime ChargesRead the Press Release
A Dallas man pleaded guilty today to federal hate crime charges arising out of a fatal shooting at a car repair shop.
Anthony Paz Torres, 38, pleaded guilty to five federal hate crime counts for killing one individual and attempting to kill four others during a shooting at Omar’s Wheels and Tires in Dallas, Texas, on Dec. 24, 2015. Torres also pleaded guilty to one count of using a firearm to commit the murder. According to documents filed in connection with his guilty plea, Torres’ shooting spree came a few days after he had gone to the business, made anti-Muslim statements and pledged that he would come back. When he returned a few days later, Torres asked customers if they were Muslim and then opened fire on the customers and employees present in the shop. Torres killed one individual and attempted to kill four other individuals with his firearm.
“Acts of Islamophobic-violence that cause death and injury have no place in our country and run contrary to our values as Americans,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant is being held accountable for a violent and deadly hate-fueled shooting spree targeting innocent Muslim Americans. The Justice Department is firmly committed to confronting unlawful acts of bias-motivated violence, and stands ready, willing and able to prosecute perpetrators who target victims because of their religion.”
“This defendant specifically targeted a business’s employees and customers simply because of religion. Tragically, his actions resulted in the death of an innocent person and injuries to others,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “Religious hatred, including anti-Muslim bigotry, has no place in America. And when that bigotry crosses the line into violence, we will not hesitate to hold perpetrators to account.”
“The defendant’s deliberate targeting of a Muslim-owned business resulted in not only the death of one person, but also caused physical and emotional harm to everyone present that day,” said Special Agent in Charge Chad Yarbrough of the FBI Dallas Field Office. “Hate crimes are not only an attack on the victim, but they are also meant to threaten and intimidate an entire community. The FBI actively works with our law enforcement partners to investigate hate crimes and achieve justice for victims impacted by violence. We will continue to pursue anyone that commits violent, hateful acts against any member of our community.”
Torres’ sentencing is set for Jan. 24, 2024. Pursuant to the terms of the plea agreement, he faces a maximum penalty of up to 37 years in prison, with credit for time served.
The FBI Dallas Field Office investigated the case, with assistance from the Dallas Police Department and Dallas Criminal District Attorney’s Office.
Trial Attorney Rebekah J. Bailey of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Nicole Dana for the Northern District of Texas are prosecuting this case.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
Owner of New Jersey Construction and Real Estate Companies Pleads Guilty to Tax EvasionRead the Press Release
A New Jersey man pleaded guilty today to evading federal income taxes.
According to court documents and statements made in court, Salvatore Caravella, Jr. of Kinnelon, New Jersey, operated construction and real estate companies, including 2-C Construction Company Inc., Bella Construction of North Jersey LLC and 203 Harrison Street LLC. Caravella oversaw all aspects of the businesses’ operations, including ensuring that all necessary tax returns on behalf of the companies were filed with the IRS. For 2015 through 2018, however, Caravella willfully did not report approximately $692,185 in self-employment income he earned from his businesses on his personal tax returns (Form 1040). Caravella’s conduct caused a total tax loss to the IRS of $235,999.
Caravella faces a maximum penalty of five years in prison, 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 Philip R. Sellinger for the District of New Jersey made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Christopher Magnani, formerly of the Tax Division, is prosecuting the case.
Grand Jury Returns Indictment Charging Robert Hunter Biden with Three Felonies Related to His Purchase of a FirearmRead the Press Release
A federal grand jury returned an indictment today charging Robert Hunter Biden (Hunter Biden) with three felony firearm offenses.
According to the indictment, Hunter Biden purchased a Colt Cobra 38SPL revolver from a federally licensed firearms dealer on Oct. 12, 2018. When purchasing a firearm, a prospective purchaser must fill out a Firearm Transaction Record, ATF Form 4473, and certify that all of his or her answers on the form are true and correct. As alleged in count one of the indictment, Hunter Biden knowingly made a false written statement on the Form 4473, intended and likely to deceive the dealer he purchased the firearm from, when he certified that he was not an unlawful user of, or addicted to, any stimulant, narcotic drug, or any other controlled substance. In fact, he knew that statement was false, according to the indictment. In count two of the indictment, Hunter Biden is alleged to have knowingly made a false statement and representation to a federally licensed firearms dealer with respect to information the dealer is required to keep under federal law. Count three of the indictment alleges that during an 11-day period between Oct. 12 and Oct. 23, 2018, Hunter Biden possessed a firearm while knowing he was an unlawful user of or addicted to any stimulant, narcotic drug, or any other controlled substance, in violation of federal law.
Hunter Biden is charged with making a false statement in the purchase of a firearm, making a false statement related to information required to be kept by Federal Firearms Licensed Dealer, and possession of a firearm by a person who is an unlawful user of or addicted to a controlled substance. 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 considering the U.S. Sentencing Guidelines and other statutory factors.
Special Counsel David C. Weiss made the announcement.
Court documents and information for this case is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 23-cr-00061-MN.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Secures Settlement with American Samoa Government to Resolve Employment Discrimination Case Involving Harassment of Transgender WomanRead the Press Release
The Justice Department announced today that it secured a settlement with the American Samoa Government (ASG) to resolve the department’s lawsuit filed in the U.S. District Court for Hawaii alleging that the ASG discriminated against a former employee, Simeonica Tuiteleleapaga, because she is a transgender woman, in violation of Title VII of the Civil Rights Act of 1964. Title VII is a federal statute that prohibits employment discrimination based on race, color, national origin, religion and sex, including sexual orientation and gender identity, and prohibits retaliation against employees for opposing discriminatory employment practices.
Under the consent decree that the district court approved yesterday, the ASG is required to pay $125,000 to compensate Ms. Tuiteleleapaga for the harassment she suffered at the hands of her supervisor. The consent decree also requires the ASG to adopt new policies and procedures to handle sex based discrimination complaints and to provide its employees training on these new policies.
“Discrimination against transgender employees is discrimination based on their sex, and no employee should have to tolerate a supervisor’s hostile comments about their gender identity,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Transgender employees must be free from discrimination, harassment or derision in the workplace. The Justice Department will not tolerate discrimination based on an employee’s sex or gender identity and will safeguard the rights of vulnerable workers, including LGBTQI+ employees.”
According to the department’s complaint, then-director of the ASG’s Department of Human and Social Services, Mr. Meki Solomona, harassed Ms. Tuiteleleapaga and another transgender employee on multiple occasions, despite the employees’ complaints about his misconduct. The complaint describes one humiliating instance when Mr. Solomona singled out Ms. Tuiteleleapaga at a department-wide meeting, where he threatened to eliminate her position, asked her if she was a “girl or a boy” and told her to “[t]ake it off” and “let us see if you are a woman.” After Ms. Tuiteleleapaga left the meeting in tears, Mr. Solomona continued his tirade for 40 minutes, repeatedly referring to her as a “thing” or an “it.” After the meeting, as described in the complaint, Mr. Solomona attempted to transfer her to another work location; misgendered her to her supervisor; attempted to terminate her; and refused to allow her routine work travel authorizations. The ASG failed to take any actions to stop his harassment.
The Hawaii District Office of the Equal Employment Opportunity Commission (EEOC) investigated and attempted to resolve Ms. Tuiteleleapaga’s charge of discrimination before referring it to the Justice Department as an enforcement action. More information about the EEOC’s jurisdiction is available on its website at www.eeoc.gov.
The enforcement of Title VII and other federal employment discrimination laws is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division and its work is available on its websites at www.justice.gov/crt and www.justice.gov/crt/employment-litigation-section.
Senior Trial Attorney Jeffrey Morrison of the Civil Rights Division’s Employment Litigation Section handled this case.
american_samoa_consent_decree_september_2023.pdfJustice Department Awards $192.8 Million in Grants to Support Community Responses to Gender-Based ViolenceRead the Press Release
In commemoration of the 29th anniversary of the original enactment of the Violence Against Women Act (VAWA), the Justice Department announced today $192,819,214 in formula and discretionary grant awards to support crucial services and justice responses for survivors of domestic violence, dating violence, sexual assault, and stalking. Congress appropriated approximately $700 million for the implementation of VAWA in Fiscal Year 2023, and additional grant awards will be announced in the coming weeks. The Office on Violence Against Women (OVW), created under VAWA, has administered over $9.5 billion in grant funds since its inception, supporting communities in implementing effective strategies that prevent and respond to these crimes.
“We must confront the continued prevalence of domestic violence, dating violence, sexual assault, and stalking in our country,” said Attorney General Merrick B. Garland. “Today the Justice Department is marking nearly three decades of the Violence Against Women Act by awarding $192.8 million in resources that will go directly to making our communities safer by supporting and gaining the trust of survivors and holding accountable those who have harmed them.”
The Department awarded a total of $172,932,681 across all 50 states and six territories under the STOP (Services, Training, Officers, and Prosecutors) Violence Against Women Formula Grants Program, one of VAWA’s inaugural grant programs. The grant is designed to promote a coordinated community response among law enforcement, prosecution, courts, victim services organizations, and other community services to ensure the safety of survivors.
“I was privileged to work on the original passage of VAWA and took to heart the government’s paramount obligation to protect its citizens,” said Deputy Attorney General Lisa O. Monaco. “For nearly 30 years, VAWA has afforded rights and safeguards to survivors of sexual violence while ensuring the criminal justice system holds their perpetrators to account. The Justice Department has furthered its promise by awarding nearly $10 billion in funding – including the newest grants announced today – to communities across the country to respond to gender-based violence.”
“Everyone has the right to live without the threat of gender-based violence, and with VAWA’s expansion and 2022 reauthorization, we are improving victim services and reaching more survivors, including survivors in marginalized communities, LGBTQI+ survivors, older adults, and those with disabilities,” said Associate Attorney General Vanita Gupta. “This is an important step toward our goal of bringing these crimes to an end, once and for all.”
“Prior to the enactment of VAWA, survivors were primarily left to fend for themselves, often cycling in and out of dangerous environments with little help from legal systems or service providers,” said OVW Director Rosie Hidalgo. “VAWA has changed this landscape by supporting a coordinated community response to address domestic violence, sexual assault, dating violence, and stalking in a more comprehensive manner. It emphasizes survivor-centered, trauma-informed, and community-based approaches and ensures that services are available across every state and territory. Last year’s reauthorization, as well as strong congressional and Administration support, has bolstered the Office on Violence Against Women’s efforts to provide increased funding to local communities nationwide, strengthening partnerships to support innovative programs and increase pathways to safety, justice, and healing.”
Additional awards announced today include:
- Grants for Training and Services to End Violence Against Individuals with Disabilities and Deaf People Program (Disability Grant Program): Fourteen grants totaling $8,339,438 will support services for individuals with disabilities and Deaf individuals. This includes but is not limited to: providing specialized training, outreach, cross-training for various agencies, and developing model programs to strengthen organizational capacities in assisting survivors.
- Grants for Outreach and Services to Underserved Populations: Seventeen grants totaling $10,066,724 will support services that enhance population-specific victim services, outreach strategies, and organizational capacities and provide training for criminal and civil justice systems to address the specific needs of underserved populations.
- Enhanced Training and Services to End Abuse in Later Life Program (Abuse in Later Life Program): Three grants totaling $1,480,371 will support projects that provide training to criminal justice professionals to enhance their ability to address elder abuse, neglect, and exploitation. These grants also offer cross-training opportunities to professionals working with older victims, establish or strengthen a coordinated community response to elder abuse, and enhance services for victims who are 50 years of age or older.
Organizations interested in applying for these and other grants are encouraged to visit the OVW website for more details and application guidelines.
Agat Mother Sentenced to 11 Months in Federal Prison for SNAP FraudRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Eugena Palomo Lane, age 39, from Agat, Guam, was sentenced to 11 months imprisonment by the District Court of Guam. Lane was convicted of Wire Fraud and Unauthorized Use, Transfer, Acquisition, Alteration, or Possession of Supplemental Nutrition Assistance Program (SNAP) Benefits, in violation of 18 U.S.C. § 1343 and 7 U.S.C. § 2024. The Court also ordered three years of supervised release, restitution in the amount of $56,271, and a $200 mandatory special assessment fee. Defendants convicted of SNAP fraud are barred from further participation in the program.
From April 2015 to February 2022, Lane defrauded the Guam Department of Public Health and Social Services (DPHSS) in order to obtain SNAP benefits to which she was not entitled. DPHSS is responsible for determining eligibility and issuing SNAP benefits, formerly known as Food Stamps. SNAP is a 100% federally funded program that provides financial aid to eligible recipients for use at authorized retail food stores. One factor DPHSS considers in issuing SNAP benefits is the applicant’s household size. Lane falsely reported to Guam DPHSS that her children were part of her household in her SNAP applications when in fact she was living separate and apart from her children. Lane admitted to using the SNAP benefits she received for her own personal gain and not for her children.
As a result of Lane’s deceit, she received $56,271.00 in fraudulently obtained SNAP benefits.
“Federal SNAP funding provides important nutritional benefits to children facing food insecurity,” stated United States Attorney Anderson. “Unfortunately, many children go hungry in our communities. This prosecution sends a message of deterrence to those who stand in the way of the benefits they deserve.”
This investigation was conducted by Guam DPHSS Investigation & Recovery Office and prosecuted by Benjamin K. Petersburg, Assistant United States Attorney in the District of Guam.
Texas Man Sentenced to 30 Months in Prison for Embezzling Funds from Employer and Filing False Tax ReturnRead the Press Release
A Texas man was sentenced today to 30 months in prison for embezzling funds from his employer and filing a false tax return.
According to court documents, beginning in April 2010 through October 2017, Steven Marquez of Hutto, embezzled more than $700,000 from his employer, an Austin-based property management company, while serving as head of its bank reconciliation team. To conceal the embezzlement, Marquez altered his employer’s corporate bank statement by deleting his transfers and making it appear as if the statements reconciled with company records. Marquez filed a false tax return for 2017 that did not report as income the embezzled funds he took that year.
Marquez was also ordered to serve three years of supervised release and to pay $188,493 in restitution to the United States and an additional $704,262 in restitution related to his embezzlement.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation investigated the case.
Assistant Chief David Zisserson and Trial Attorney Kavitha Bondada of the Tax Division prosecuted the case.
Subcontractor Sentenced to Pay Nearly $9 Million in a Criminal Fine and Restitution for Rigging Bids and Defrauding the U.S. MilitaryRead the Press Release
J&J Korea Inc. (J&J Korea), a company based in the Republic of Korea (South Korea), was sentenced today by a federal judge in Austin, Texas, to pay nearly $9 million dollars in a criminal fine and restitution for rigging bids and committing fraud in connection with subcontract work at U.S. military installations in South Korea.
On May 10, J&J Korea Inc. pleaded guilty in the U.S. District Court for the Western District of Texas to one count of wire fraud and one count of conspiracy to restrain trade.
“The significant corporate fine and restitution order in this case demonstrates the importance of protecting U.S. taxpayer dollars both at home and abroad,” said Deputy Assistant Attorney General for Criminal Enforcement Manish Kumar of the Justice Department’s Antitrust Division. “The Antitrust Division and our Procurement Collusion Strike Force partners will continue to aggressively pursue bid rigging and other collusion that targets the United States, even when criminals execute their schemes overseas.”
“Today’s sentencing demonstrates that those who conspire to rig bids to eliminate competition and attempt to defraud the government will be caught and held accountable,” said Special Agent in Charge Michael Curran of the Department of the Army Criminal Investigation Division (CID), Major Procurement Fraud Field Office. “CID will continue to see to it that anyone suspected of contract fraud and corruption is brought to justice.”
“The FBI and its partners vigorously investigate and work to prosecute individuals and entities who conspire to engage in bid rigging,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Today’s sentencing demonstrates the FBI’s dedication and commitment to ensuring that those who defraud the U.S. government and the American people face justice.”
Based on court filings, J&J Korea, along with other co-conspirators, rigged bids and defrauded the U.S. Department of Defense (DOD) to obtain millions of dollars in repair and maintenance subcontract work at U.S military hospitals in South Korea. The subcontract work related to a U.S. Army Corps of Engineers (USACE) contract that provides for operation and maintenance support services at U.S. military facilities around the world, including military hospitals in South Korea. The USACE contract required the prime contractor to use a competitive bidding process when awarding subcontract work under the contract, but J&J Korea and one of its co-conspirators, another company located in South Korea, agreed to submit rigged bids, thereby ensuring that J&J Korea would win most of the subcontract work in South Korea under the USACE contract.
The scheme, which ran from at least November 2018 to March 2021, caused the DOD to overpay for J&J Korea’s services in the amount of approximately $3.6 million. As part of the sentence, the company will pay a $5 million fine and $3.6 million in restitution. This guilty plea and sentence are the first in an ongoing investigation into bid rigging and related fraud at U.S. military installations in South Korea. In March 2022, two officers of J&J Korea were also indicted by a grand jury in connection with the same conduct.
The Antitrust Division’s Washington Criminal II Section, CID and the FBI investigated the case.
Trial Attorneys Daniel E. Lipton and Daniel P. Chung of the Antitrust Division prosecuted the case with assistance from Assistant United States Attorney Matthew B. Devlin for the Western District of Texas.
Anyone with information in connection with this investigation, or with information on other market allocation, price fixing, bid rigging and other anticompetitive contact should contact the Procurement Collusion Strike Force at www.justice.gov/procurement-collusion-strike-force.
The Procurement Collusion Strike Force is Department of Justice’s coordinated, joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact procurement and grant and program funding at all levels of government — federal, state and local. The strike force expanded its footprint with the launch of PCSF: Global, which is designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. For more information, visit www.justice.gov/procurement-collusion-strike-force.
Maine Man Arrested for Racially-Motivated Death Threats Against Black NeighborRead the Press Release
A Maine man was arrested today on federal charges for sending a threatening voicemail to a neighbor.
According to the indictment, Charles Allen Barnes, 47, of Lewiston, allegedly used an interstate communications service to transmit a voice message in which he used racial slurs and stated that he was outside a neighbor’s residence and would kill any Black person who emerged. Barnes also allegedly chose the neighbor as the object of the offense because of the neighbor’s race.
Barnes is charged with one count of violating the federal interstate threats statute. If convicted, he faces a maximum penalty of five years in prison.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Darcie N. McElwee for the District of Maine and Special Agent in Charge Jodi Cohen of the FBI Boston Division made the announcement.
The FBI Boston Division investigated the case.
Assistant U.S. Attorney Sheila W. Sawyer for the District of Maine and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division are prosecuting the case.
For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
barnes_indictment_september_12.pdfFormer Alabama Department of Corrections Lieutenant Pleads Guilty to Federal Civil Rights and Obstruction Offenses for Assaulting a Restrained Inmate and Lying to Cover It UpRead the Press Release
A former Alabama Department of Corrections (ADOC) lieutenant pleaded guilty today to using excessive force on an inmate and lying afterwards in an official report to cover up his abuse.
According to the plea agreement, former William E. Donaldson Correctional Facility Lieutenant and Shift Commander Mohammad Shahid Jenkins, who had more than 20 years of experience in law enforcement, used excessive force on inmate V.R. Specifically, on Feb. 16, 2022, Jenkins willfully deprived inmate V.R. of his right to be free from excessive force by kicking him, hitting him, spraying him with chemical spray, striking him with a can of chemical spray and striking him with a shoe, while V.R. was restrained inside of a holding cell and not posing a threat. Jenkins admitted that, over the course of approximately five minutes and outside the presence of other officers and inmates, Jenkins repeatedly re-entered the holding cell that V.R. was in and re-assaulted him numerous times. Jenkins used a dangerous weapon — chemical spray and the can of chemical spray — on V.R. and his attacks on V.R. caused V.R. to suffer bodily injury. Following his assault on V.R., Jenkins authored a false incident report. In it, he gave a false account of where, in Donaldson, he transported V.R. to and he omitted entirely his use of force on V.R. from his report. As part of the factual basis, Jenkins further admitted that he lied to investigators by denying using any force on V.R.
Further, as part of the factual basis, Jenkins admitted to using force on another inmate on a different occasion at Donaldson. Specifically, on Nov. 29, 2021, Jenkins willfully deprived inmate D.H. of his right to be free from excessive force by repeatedly spraying D.H. with chemical spray while D.H. was handcuffed behind his back and compliant, by hitting D.H. in the head with the can of chemical spray and by delivering an open-hand strike to D.H.’s head while D.H. was suffering from the effects of chemical spray.
“Senior law enforcement officers set the tone for junior officers whom they supervise,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant abused his position of power to carry out a violent assault on a restrained inmate, in an isolated location of the prison. The Justice Department will continue to hold accountable law enforcement officers who violate the civil rights of any American, including those who are incarcerated in our jails and prisons.”
“There is zero tolerance for corrections officers who commit these egregious crimes,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “My office will continue to aggressively prosecute and bring to justice those who abuse their authority and prey on vulnerable people who they are sworn to protect and keep safe.”
“The civil rights of all must be protected, including those who are in the trusted custody of law enforcement officials,” said Special Agent in Charge Carlton L. Peeples of the FBI Birmingham Field Office. “To willfully deprive any individual without due process or subject the same to cruel and unusual punishment can’t be tolerated or perceived to be so commonplace it’s considered normal inside of our institutions. The FBI will remain committed to holding those who swore an oath to protect and serve, but instead willfully abused their privileges and abandon their responsibilities as law enforcement officers, accountable.”
Sentencing is scheduled for Dec. 19. Jenkins faces a maximum penalty of 10 years in prison on the excessive force charge related to his assault of V.R. and 20 years in prison on the obstruction charge. He also faces up to three years of supervised release and a fine of up to $250,000.
The FBI Birmingham Field Office investigated the case with the assistance of ADOC’s Law Enforcement Services Division.
Assistant U.S. Attorney George Martin for the Northern District of Alabama and Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section are prosecuting the case.
Five Former Memphis Police Officers Charged with Federal Civil Rights, Conspiracy and Obstruction Violations in Connection with the Death of Tyre NicholsRead the Press Release
A federal grand jury in Memphis, Tennessee, returned an indictment today charging five former Memphis Police Department (MPD) detectives with federal civil rights, conspiracy, and obstruction offenses resulting in the death of Tyre Nichols on Jan. 7.
“The country watched in horror as Tyre Nichols was kicked, punched, tased, and pepper sprayed, and we all heard Mr. Nichols cry out for his mother and say ‘I’m just trying to go home,’” said Attorney General Merrick B. Garland. “Officers who violate the civil rights of those they are sworn to protect undermine public safety, which depends on the community’s trust in law enforcement. They dishonor their fellow officers who do their work with integrity every day. The Justice Department will continue to hold accountable officers who betray their oath.”
“Tyre Nichols should be alive today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “It is tragic to see a life cut short at 29, with so many milestones unmet, so many words unsaid, so much potential unfulfilled. These federal charges reflect the Justice Department’s unwavering commitment to protecting the constitutional and civil rights of every American and preserving the integrity of the criminal justice system. We stand ready to hold law enforcement officers accountable for their misconduct because no one is above the law in our country.”
“When I announced this investigation back in January, I said I wanted this city to be a place where justice is done,” said U.S. Attorney Kevin Ritz for the Western District of Tennessee. “This indictment alleging civil rights violations is an important step in ensuring that justice is done for Tyre Nichols. I want to thank the dedicated team of prosecutors and law enforcement agents who are working on this case. I’m proud of our team and proud of their commitment to protecting the civil rights of all Americans.”
According to the four-count indictment, all five defendants, Emmitt Martin III, 31; Tadarrius Bean, 24; Demetrius Haley, 30; Desmond Mills Jr., 33; and Justin Smith, 28, while serving as members of an MPD SCORPION team, willfully deprived Nichols of his constitutional rights. The first count of the indictment alleges that the defendants, aided and abetted by one another, violated Nichols’ right to be free from the use of unreasonable force by a police officer by assaulting him and by failing to intervene in the unlawful assault. Count one also alleges that this offense resulted in bodily injury and the death of Nichols.
Count two of the indictment alleges that all five defendants violated Nichols’ right to be free from a law enforcement officer’s deliberate indifference to his serious medical needs. Specifically, the indictment alleges that even though the defendants knew that Nichols had a serious medical need, the defendants willfully disregarded that medical need by failing to render medical aid and by failing to advise the MPD dispatcher and emergency medical personnel of the circumstances surrounding Nichols’ serious medical need. Count two also alleges that this offense resulted in bodily injury and death of Nichols.
Count three of the indictment alleges that all five defendants conspired to cover up their use of unlawful force by omitting material information and by providing false and misleading information to their supervisor and to others. Specifically, the indictment outlines overt acts the defendants committed in furtherance of the conspiracy, including, among others, failing to tell MPD and Memphis Fire Department personnel that the defendants had struck Nichols and that the defendants had discussed hitting Nichols with straight haymakers and taking turns hitting him. Further, the indictment alleges that the defendants provided false and misleading information to two MPD officers tasked with writing reports about Nichols’ arrest. Finally, it alleges that the defendants submitted Response to Resistance Reports that contained false and misleading information and omitted that the defendants had assaulted Nichols.
Count four of the indictment alleges that the defendants committed an obstruction offense by intentionally omitting material information, and providing false and misleading information, to two MPD officers tasked with writing MPD reports about the arrest of Nichols.
Counts one and two of the indictment carry a maximum penalty of life in prison. Counts three and four each carry a maximum penalty of 20 years in prison.
The charges announced today are separate from the Justice Department’s civil pattern or practice investigation into the MPD. The charges announced today are criminal, while the pattern or practice investigation is a civil investigation that will be conducted separately and independently from the criminal case and will be handled by a different team of career staff from the Civil Rights Division and the U.S. Attorney’s Office.
The charges announced today are also separate from, and in addition to, the charges the State of Tennessee has brought against these former officers related to the death of Nichols. The federal charges allege different criminal offenses. Specifically, and among other federal charges, today’s indictment alleges violations of the U.S. Constitution, rather than of state law.
The FBI Memphis Field Office investigated this case.
Assistant U.S. Attorneys David Pritchard and Elizabeth Rogers for the Western District of Tennessee and Special Litigation Counsel Kathryn E. Gilbert and Deputy Chief Forrest Christian of the Justice Department’s Civil Rights Division are prosecuting the case.
Remote video URLAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Michigan Marijuana Dispensary Owner Convicted of Tax Evasion and Obstructing the IRSRead the Press Release
A federal jury in Detroit found a Michigan man guilty of evading federal income taxes and obstructing the IRS, among other charges.
According to court documents and evidence presented at trial, Ryan Richmond, of Bloomfield, owned and operated the marijuana dispensary Relief Choices, LLC in Warren, Michigan. From 2011 through at least 2014, Richmond had Relief Choices pay its operating expenses extensively in cash, and routed customer credit card payments through an unrelated third-party bank account to conceal his true business gross receipts. In 2015 and 2016, Richmond obstructed the IRS by misleading investigators – and particularly an IRS auditor examining his individual income taxes – about his knowledge of, role in and profits derived from his Relief Choices operation. Richmond caused a tax loss to the IRS of more than $1.15 million.
Richmond is scheduled to be sentenced on Dec. 13 and faces a statutory maximum penalty of five years in prison for each count of tax evasion, three years in prison for obstructing the IRS and one year in prison for the willful failure to file a tax return count. 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 made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Mark McDonald and Christopher P. O’Donnell of the Tax Division are prosecuting the case.
Justice Department’s National Security Division Announces Key Corporate Enforcement AppointmentsRead the Press Release
The Justice Department’s National Security Division announced today that it has made key appointments to lead the Division’s corporate enforcement program. Ian C. Richardson has been named the first Chief Counsel for Corporate Enforcement, and Christian J. Nauvel has been named as Deputy Chief Counsel for Corporate Enforcement. Both attorneys will coordinate and oversee the Division’s investigation and prosecution of corporate crime relating to the national security of the United States.
“In an era of renewed nation-state competition, corporations are on the front lines of the fight to defend our national security,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We have watched with concern as investigations of corporate misconduct increasingly reveal violations of laws that protect the United States. Enforcing the laws that deny our adversaries the benefits of America’s innovation economy and protect technologies that will define the future is core to the National Security Division’s mission.”
Previously, Richardson served as an Assistant U.S. Attorney for the Eastern District of New York. As a prosecutor, he led key corporate enforcement and national security prosecutions. In U.S. v. Lafarge SA, Richardson obtained the Department’s first corporate conviction for providing material support to foreign terrorist organizations. In U.S. v. Ticketmaster LLC, he resolved a corporate computer intrusion investigation in which the company admitted obtaining unauthorized access to a competitor’s computers. Recently, in Operation Medusa, Richardson obtained the court order that authorized an FBI-led computer network operation to remotely neutralize malware used by Russia for long-term cyber-espionage.
Prior to joining the National Security Division, Nauvel served as Senior Counsel to the Assistant Attorney General for the Criminal Division. Previously, he was a Trial Attorney in the Criminal Division’s Money Laundering and Asset Recovery Section and with the National Cryptocurrency Enforcement Team (NCET). Nauvel served as a lead prosecutor in U.S. v. Huawei, which charged the defendants with racketeering, sanctions violations and theft of trade secrets. He has investigated and prosecuted financial institutions, including in U.S. v. Bank Julius Baer, as part of the FIFA corruption scheme. He has also conducted sensitive cryptocurrency cases within the NCET.
In announcing the establishment of these positions in March, Deputy Attorney General Lisa Monaco also announced that the National Security Division would add more than 25 prosecutors to investigate and prosecute sanctions evasion, export control violations and similar economic crimes.
Deputy Attorney General Lisa O. Monaco Statement on the 22nd Anniversary of the Terrorist Attacks of Sept. 11, 2001Read the Press Release
The Justice Department issued the following statement from Deputy Attorney General Lisa O. Monaco on the 22nd anniversary of the terrorist attacks of September 11, 2001:
“Twenty two years ago, we lost almost 3,000 of our fellow Americans in what remains the deadliest terrorist attack in our nation’s history. In the years since, the men and women of the Justice Department have worked tirelessly to prevent terrorist attacks before they happen and hold accountable those who engage in violent extremism. The threats our country faces continue to evolve but our commitment to protecting the American people will never waver.”
Suspended Indianapolis Police Sergeant Sentenced for Using Excessive Force During ArrestRead the Press Release
A suspended Indianapolis Metropolitan Police Department Sergeant was sentenced to 12 months and a day in prison, with six months of home detention and 18 months of supervised release, after pleading guilty to violating the civil rights of an arrestee by using excessive force.
According to court documents, on Sept. 24, 2021, Eric Huxley, 44, was on patrol in downtown Indianapolis when another officer requested his assistance in confronting a disorderly person on Monument Circle. After officers placed the victim, identified as J.V., under arrest for disorderly conduct, Huxley assisted other officers with conducting an inventory of J.V.’s property.
When officers began to remove J.V.’s belt, he became confrontational with the officers. The primary arresting officer used a department-approved takedown maneuver to bring J.V., who had already been handcuffed, to the ground. The arresting officer held J.V. down with one hand while a second officer restrained his legs. This reasonable and appropriate use of force effectively overcame J.V.’s resistance and rendered him physically unable to move.
Despite knowing that J.V. had been effectively restrained and posed no further danger to officers or the public, Huxley then intentionally raised his right foot and drove it down onto J.V.’s head and face.
“This sentence holds a former police officer accountable for abusing his authority when he violently assaulted a homeless man who posed no threat,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to aggressively investigating and prosecuting law enforcement officials who violate federal civil rights laws.”
“In addition to the trauma inflicted on victims, police officers who break the law and use excessive force damage the community’s trust in the law enforcement profession,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “Officers put themselves at risk every day doing a difficult and sometimes dangerous job to uphold the law and protect their communities. Those who instead commit crimes must be identified and prosecuted. Today’s sentencing demonstrates that the FBI, Justice Department and our U.S. Attorney’s Office are committed to seeking accountability for those who violate people’s civil rights under the color of law.”
“Every day, law enforcement officers in this country face dangerous situations which require the application of reasonable force to protect themselves and others. Unfortunately, some officers fail to adhere to the applicable standards of law and policy, inflicting harm instead of preventing it,” said Special Agent in Charge Herbert J. Stapleton of the FBI Indianapolis Field Office. “This sentence reflects the FBI’s commitment to protecting the civil rights of all citizens and I commend the work of the Special Agents and prosecutors who helped ensure the defendant was held accountable for his illegal conduct.”
The FBI Indianapolis Field Office investigated the case.
Assistant U.S. Attorney Tiffany Preston for the Southern District of Indiana and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section prosecuted the case.
Justice Department Secures Settlement Protecting Employment Rights of ServicemembersRead the Press Release
The Justice Department announced today that it has resolved a complaint filed against the City of Chicago on behalf of U.S. Army Reservist Derrick Strong. The department’s lawsuit alleged that the city violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) when it failed to offer Strong the opportunity to take an examination upon his return from military service that would have made him eligible for a promotion. After the lawsuit was filed, Strong was given the promotional exam, which he passed, and promoted to the rank of Fire Engineer. The settlement will award him retroactive seniority and back pay.
“Federal law safeguards the civilian employment rights of our nation’s servicemembers and requires that they have the promotional opportunities they would have earned had their employment not been interrupted by military service,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Employers must ensure that servicemembers have a fair opportunity to seek promotion, including by offering make-up examinations missed due to military service, and this settlement will ensure that this continues to happen.”
Strong began his employment in August 2009 as a Firefighter/EMT. He served on active duty from September 2016 through June 2017. Immediately upon returning from his deployment, Strong made multiple requests to take the Fire Engineer promotional examination that he missed while on active duty. Although the city did not begin making Fire Engineer promotions until almost a year after Strong returned, the city denied him the opportunity to take the exam. Initially, the city asserted that because it offered Strong an opportunity to take the Fire Engineer promotional examination at his military post while on active duty, his failure to take the promotional exam was of his own doing.
In April 2022, shortly after Strong’s successful performance on the make-up Fire Engineer examination that was ultimately given to him, the city promoted him to the rank of Fire Engineer. The city also changed its policy to allow servicemembers to take make-up promotional examinations upon their return from military service. Under the terms of the settlement agreement, the city also agreed to retroactively adjust Strong’s Fire Engineer appointment date to June 2018, the date that he would have been promoted had the city properly administered the examination upon his return from military service and to pay Strong for his lost wages in the amount of $52,000.
The Department of Labor (DOL) referred this matter to the Justice Department following an investigation by its Veterans’ Employment and Training Service.
Trial Attorneys Alicia D. Johnson, Vendarryl Jenkins and Catherine Sellers of the Civil Rights Division’s Employment Litigation Section (ELS) litigated this case.
ELS continues to work collaboratively with the DOL to protect the jobs and benefits of military members. The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found at www.justice.gov/crt/laws-we-enforce and www.justice.gov/servicemembers, as well as on the DOL’s website at www.dol.gov/agencies/vets/programs/userra.
Justice Department Awards $58.8 Million in Grants to Provide Legal Services and Improve Court Responses to Domestic and Sexual ViolenceRead the Press Release
The Justice Department announced today $58,860,034 in Office on Violence Against Women (OVW) grants to provide legal services and to improve effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence and stalking. OVW awarded the funds under the Legal Assistance for Victims (LAV) Program, Justice for Families (JFF) Program, Expanding Legal Services Initiative (ELSI) and the Domestic Violence Mentor Court Technical Assistance Initiative.
The need for specialized legal services is both urgent and essential for survivors of domestic and dating violence, sexual assault and stalking. These services provide interventions, such as securing restraining or protective orders and address issues such as child custody, immigration, housing and employment, that are essential for survivor safety. Moreover, there is a significant overlap between domestic violence and family law, particularly in cases involving children; survivors often need legal counsel to navigate complex issues like child custody, visitation and child support. The legal system is inherently complicated, and for survivors who are simultaneously managing the emotional and physical toll of abuse, navigating it can be overwhelming. Despite this acute demand, many communities still lack adequate resources, underscoring the urgency for more comprehensive legal support to ensure both justice and safety for survivors.
“Access to legal assistance is a lifeline for survivors of gender-based violence,” said Associate Attorney General Vanita Gupta. “Survivors must be able to access services and support that provide a pathway to safety and justice. The Justice Department funding announced today will expand access to legal representation and make it easier for thousands of survivors to navigate the justice system every year.”
"The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system's approach to supporting families affected by violence," stated OVW Director Rosemarie Hidalgo. "These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety."
Specifically, OVW awarded a total of $39,638,367 to 55 grantees under the LAV Program, which addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. ELSI, which operates under the LAV Program, awarded $3,199,306 through eight grants to support the development of new legal services programs. In addition, OVW’s JFF Program awarded $15,272,361 to 25 projects that aim to improve the capacity of communities and courts in responding to families impacted by violence. Moreover, $750,000 was awarded under the Domestic Violence Mentor Court Technical Assistance Initiative to recognize well-established specialized courts and enable them to guide newly-established specialized courts and court-based programs that wish to significantly improve their responses to domestic violence cases and ensure victim safety and offender accountability.
* * *
Created in 1995, OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
justice_for_families_program_awards.pdf legal_assistance_for_victims_grant_program_awards.pdf legal_assistance_for_victims_grant_program_expanding_legal_services_initiative_awards.pdf domestic_violence_mentor_court_technical_assistance_initiative_awards.pdfJamaican National Charged with Debt Relief ScamRead the Press Release
Sereika Savariau, also known as Sereika Savariau-Goodison, 36, of Jamaica, appeared in U.S. federal court today and was arraigned on an eight-count indictment charging her with creating a series of fraudulent debt relief companies that tricked U.S. victims into paying fees and disclosing personal identifying information sensitive information, and identity documents to obtain debt relief, which did not actually exist.
The announcement was made by U.S. Attorney Matthew M. Graves for the District of Columbia and Assistant Inspector General for Investigations Sally Luttrell of the Treasury Department, Office of Inspector General.
On Dec. 2, 2021, a federal grand jury returned an eight-count sealed indictment charging Savariau with one count of conspiracy to commit wire fraud affecting a financial institution, four counts of wire fraud affecting a financial institution and three counts of aggravated identity theft. The indictment alleges that between 2016 and 2018, Savariau conspired with others to profit from fees paid by victims of fraudulent debt relief companies. The indictment alleges that conspirators created and operated fraudulent businesses and websites that marketed and sold fraudulent debt relief services to members of the public. Conspirators fraudulently misrepresented that members of the public could apply for and obtains thousands of dollars’ worth of debt relief on their outstanding, unpaid bills in the form of grants, all in exchange for payment of a service processing fee. Conspirators also claimed that the purported debt relief was funded and administered by the U.S. government. Through their false representations, Savariau and her co-conspirators are alleged to have induced or attempted to induce victims throughout the United States to pay over a million dollars’ worth of service processing fees to Savariau and her co-conspirators via Western Union, Money Gram, PayPal and other payment mechanisms.
Savariau arrived in the D.C. metropolitan area on Thursday after being extradited from Jamaica. At today’s initial appearance, the Honorable Zia M. Faruqui ordered that she be held without bond pending her next hearing, which is scheduled for Sept. 20.
This case was investigated by the U.S. Department of Treasury’s Office of Inspector General, the Justice Department's Computer Crime and Intellectual Property Section, and the U.S. Attorney’s Office for the District of Columbia. The Justice Department’s Office of International Affairs provided valuable assistance in securing the arrest and extradition of Savariau.
The case is being prosecuted by Trial Attorneys Louisa Becker and Ashley Pungello of the Criminal Division's Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Kondi Kleinman for the District of Columbia.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
savariau_indictment_september_8th.pdfIllinois Family Members Plead Guilty to Kidnapping, Forced Labor and Conspiracy for Coercing Two Minors and a Third Victim in Years-Long Forced Labor SchemeRead the Press Release
Lorenza Domingo-Castaneda, 34, a Guatemalan national, pleaded guilty today in the Central District of Illinois to three counts of forced labor and two counts of conspiracy to commit forced labor. On Aug. 18, co-defendant Catarina Domingo-Juan, 37, also pleaded guilty to three counts of forced labor and two counts of conspiracy to commit forced labor. A third co-defendant, Domingo Francisco-Juan, 43, previously pleaded guilty on Aug. 30 to forced labor, conspiracy to commit forced labor, kidnapping and conspiracy to commit kidnapping.
According to court documents, the defendants, who are siblings, conspired to bring two minor victims from Guatemala to the United States to work in their homes between December 2015 and March 2021. The defendants compelled the victims to provide domestic services within the homes and to work outside the homes at local hotels and factories. The defendants used false promises of a better life and an education to gain the permission of the victims’ mothers for their minor daughters to travel to the United States to live with the defendants. Domingo-Castaneda and Domingo-Juan also compelled a third victim to work in their homes and outside their homes at local businesses. The defendants isolated the victims in their homes, restricted their communications with their family in Guatemala and subjected them to physical, verbal and psychological abuse, among other coercive means.
“Human trafficking — particularly compelling the labor and services of unaccompanied minors — cannot be tolerated.” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Traffickers deftly use the promise of America to lure adults and children into the United States from thousands of miles away, only to then turn around and reveal their promises were false as part of a coercive scheme to compel their labor. The Justice Department remains steadfast in identifying and prosecuting human traffickers who exploit vulnerable victims for their own financial benefit.”
“Human trafficking is a scourge that affects not only far-flung locales but our local communities as well,” said U.S. Attorney Gregory K. Harris for the Central District of Illinois. “Traffickers prey on vulnerable victims – including children – bringing them to the United States and entangling them in forced labor schemes. The Central District of Illinois is committed to prosecuting these crimes and further asks community members who are aware of any signs of such exploitation to pass that information on to law enforcement.”
“Labor traffickers only care about one thing — money,” said Special Agent in Charge Sean Fitzgerald of Homeland Security Investigations (HSI) Chicago. “Those subjected to domestic servitude are robbed of their dignity and freedom. Thankfully, these victims were rescued thanks to the efforts of law enforcement. Apprehending labor and human traffickers who take advantage of our most vulnerable and rescuing those exploited will always be a top priority for HSI.”
In accordance with the plea agreements, the defendants face penalties of 20 years up to life in prison as well as mandatory restitution. A federal district court judge will determine any penalty after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI with the assistance of the Champaign Police Department, Champaign County Sheriff’s Office, U.S. Marshals Service and Champaign County State’s Attorney’s Office investigated this case.
Assistant U.S. Attorney Bryan Freres for the Central District of Illinois and Trial Attorney Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Readout of Russian Elites, Proxies, and Oligarchs (REPO) Task Force Deputies MeetingRead the Press Release
Principal Associate Deputy Attorney General Marshall Miller and Deputy Secretary of the Treasury Wally Adeyemo convened deputies of the REPO Task Force to enhance sanctions enforcement efforts and bolster ongoing oligarch asset forfeiture initiatives.
Participants from Australia, Canada, the European Commission, France, Germany, Japan, Italy, the United Kingdom, and the United States discussed ongoing sanctions enforcement initiatives and noted the need to counter Russian elites and their proxy networks that continue to enable and profit from Putin’s war economy. Deputies emphasized that those profiting from Russia’s war should not be able to live lives of luxury, and that task force members will continue to identify and disrupt proxy networks that attempt to use global financial centers to store and access wealth. Deputies also discussed ongoing efforts to counter sanctions evasion and disrupt Russian efforts to acquire critical dual-use technologies that fuel the Russian war machine.
Following the G7 leaders’ commitment in May, the REPO Task Force has completed its initial effort to map and account for Russian sovereign assets that are immobilized and held in REPO member jurisdictions. REPO members committed to taking steps to fully map these holdings and ensure that, consistent with their respective legal systems, Russia’s sovereign assets held in REPO member jurisdictions will remain immobilized until Russia pays for the damage it has caused to Ukraine. The total value of assets in this mapping exercise is estimated at around $280 billion, the majority of which is held in the European Union. Given the complexity of this exercise, task force members expect to refine the asset mapping through the end of the year, leveraging new reporting requirements and enhanced information sharing arrangements.
Miami Medical Clinic Owner and Pharmacist Convicted for Clinical Trial Fraud SchemeRead the Press Release
A jury in Miami convicted two defendants on Sept. 5 in a scheme involving the falsification and fabrication of clinical trial data.
On Sept. 5, Miguel Angel Montalvo Villa, 53, and Ivette Maria Portela Martinez, 53, both of Miami, were each convicted of one count of conspiracy to commit wire fraud and one count of wire fraud. Montalvo also was convicted of making a false statement to a regulatory investigator with the Food and Drug Administration (FDA).
Previously, on Sept. 13, 2022, Montalvo and Portela were charged in a three-count indictment returned by a federal grand jury. The indictment alleged that, from September 2015 through March 2018, the defendants and a co-conspirator conspired to falsify clinical trial data for profit while working at AMB Research Center Inc. (AMB), a medical clinic located in Miami, Florida.
According to court documents and evidence presented during the trial, Montalvo was co-owner, president and chief executive officer of AMB, and Portela was an employee who, among other things, served as AMB’s pharmacist and data entry specialist. Montalvo and Portela used the names of individuals without their knowledge or permission, and listed those individuals as subjects who who were enrolled and participated in a clinical trial for a drug that was being developed to treat Clostridium difficile-associated diarrhea (CDAD), a moderate to serious form of diarrhea. None of the listed individuals knew that the defendants were using their personal information to falsely portray them as subjects in the CDAD clinical trial. Montalvo and Portela falsified hundreds of pages of documents and entered that false information into clinical trial databases, to make it appear as though the purported subjects had CDAD and were fully participating in the clinical trial, when in fact they were not.
In connection with a February 2018 FDA regulatory inspection of AMB, Montalvo told the FDA regulatory investigator that AMB’s principal investigator had obtained informed consent from all purported CDAD clinical trial subjects, when in fact (and as Montalvo knew) the principal investigator had not done so. As part of the conspiracy, Montalvo also submitted falsified and fraudulent invoices, totaling $277,920.70, in order for AMB to receive payments for conducting the CDAD clinical trial.
Sentencing is scheduled for Nov. 30 before the Honorable K. Michael Moore of the U.S. District Court for the Southern District of Floria.
“Truthful clinical trial data is essential to ensuring that new drug treatments are safe and effective,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work with its law enforcement partners to prosecute those who intentionally falsify clinical trial data for personal profit.”
“Reliable and accurate data from clinical trials is the cornerstone of FDA’s drug approval process. The jury’s finding demonstrates that those who attempt to subvert the regulatory functions of the FDA by making false statements to the agency will be held accountable for their actions,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations Miami Field Office. “We commend the efforts of the Department of Justice for vigorously pursuing the prosecution of this matter.”
FDA’s Office of Criminal Investigations, Miami Field Office, investigated the case, and the U.S. Attorney’s Office of the Southern District of Florida has provided critical assistance.
The Justice Department’s Consumer Protection Branch prosecuted the case.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at www.justice.gov/usao-sdfl.
Justice Department Finds State of New Jersey Violated U.S. Constitution with Deficient Care at Two State Run Veterans’ HomesRead the Press Release
The Justice Department announced today that it has concluded an investigation into whether New Jersey subjected residents of two veterans’ homes to conditions that violate the 14th Amendment of the United States Constitution.
The department found reasonable cause to believe the residents of the New Jersey Veterans Memorial Homes at Menlo Park and Paramus face unreasonable harm and risk due to inadequate infection control practices and inadequate medical care, in violation of the U.S. Constitution. The New Jersey Department of Military and Veterans Affairs operates the homes, which provide long-term nursing care to veterans and their families.
“We owe the veterans who served our nation our deepest thanks, and those veterans and their family members who live in these facilities have the right to appropriate care,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Based on our investigation, we have found that these facilities have provided inadequate protection from infections and deficient medical care, which have caused these veterans and their families great harm. We look forward to working with the New Jersey Department of Military and Veterans Affairs to improve the conditions in these homes they operate and ensure these veterans and their families receive the care they need and deserve.”
“Those who served to protect this nation and their families are entitled to appropriate care when they reside at a veterans’ home,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “The Paramus and Menlo Park veterans’ homes fail to provide the care required by the U.S. Constitution and subject their residents to unacceptable conditions, including inadequate infection control and deficient medical care. These conditions must swiftly be addressed to ensure that our veterans and their families at these facilities receive the care they so richly deserve. We will not stop working until they do.”
The inadequate infection control practices and inadequate medical care at the homes are compounded by a lack of effective management and oversight. Such deficiencies expose residents to uncontrolled, serious and deadly infections and have resulted in the veterans’ homes suffering among the highest number of resident deaths of all similarly sized facilities in the region.
The investigation was conducted under the Civil Rights of Institutionalized Persons Act (CRIPA), which authorizes the Justice Department to act to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run residential institutions.
As required by CRIPA, the department provided the state with written notice setting out the department’s conclusions and the supporting facts. The department also notified the state of the minimum remedial measures necessary to address the alleged violations.
The Special Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey conducted the investigation.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of New Jersey is available on its website at www.justice.gov/usao-nj/civil-rights-enforcement.
Fraud Charges Added Against Health Care Staffing Executive in Las VegasRead the Press Release
A federal grand jury in Las Vegas returned a superseding indictment yesterday charging a health care staffing executive with conspiring to fix the wages of Las Vegas nurses — and then fraudulently concealing that conspiracy and the government’s investigation so that he could sell his company for over $10 million.
According to the six-count felony indictment, Eduardo Lopez, of Las Vegas, held executive positions at three different home health agencies. For each company, Lopez oversaw recruitment, hiring, retention and assignments of nurses and other health care staff. Count one of the superseding indictment charges Lopez and other unnamed co-conspirators with agreeing to suppress and eliminate competition for the services of nurses between March 2016 and May 2019.
Counts two through six of the superseding indictment charge Lopez with wire fraud. According to the indictment, in December 2021, Lopez sold his health care staffing company for over $10 million and falsely represented to the buyer of his company that federal law enforcement was not investigating him or his company. But, according to court documents, Lopez knew that was false. FBI special agents had questioned Lopez, served Lopez with a grand jury subpoena addressed to his company and seized his cell phone pursuant to a search warrant.
“Wage fixing hurts workers,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division will aggressively investigate and prosecute wage-fixing conspiracies and any fraudulent conduct aimed at keeping the illicit profits of such conspiracies.”
“Today’s superseding indictment demonstrates our ongoing commitment to enforce federal antitrust laws and to ensure workers have an opportunity to compete for employment in a fair marketplace,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “We will continue to work with the Antitrust Division and our law enforcement partners to protect the right of workers to earn a fair wage, and to root out wrongdoers who commit unlawful anticompetitive conduct.”
“The FBI and its partners will not tolerate the illicit practice of fixing wages,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “As today’s indictment shows, we will continue to pursue anyone engaging in fraudulent activity and combat any attempts made to evade the consequences of those actions.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum. A violation of the wire fraud statute carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s San Francisco Office and the FBI’s International Corruption Unit investigated the case, with assistance from the U.S. Attorney’s Office for the District of Nevada.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Louisiana Correctional Officer Charged with Federal Civil Rights and Obstruction Offenses Involving Excessive Force IncidentRead the Press Release
A federal grand jury in Shreveport, Louisiana, returned a three-count indictment today charging former DeSoto Parish Sheriff’s Office (DPSO) Correctional Officer Javarrea Pouncy with federal civil rights violations for willfully using unreasonable force against a detainee, failing to obtain medical care for the detainee and obstructing justice.
According to the indictment, on Sept. 27, 2019, Pouncy, acting in his official capacity as a DPSO correctional officer, used unreasonable force against a detainee by repeatedly striking him in the head and body without legal justification while the detainee was being booked into the DeSoto Parish jail. The indictment further alleges that the assault caused bodily injury to the detainee.
In addition, the indictment alleges that Pouncy knew that the detainee had serious medical needs and willfully failed to obtain necessary medical care for him.
The indictment also charges Pouncy with obstruction of justice for knowingly falsifying and making a false entry in a DPSO report with the intent to impede, obstruct and influence an investigation into the assault.
Count one of the indictment charges Pouncy for his unreasonable use of force; count two charges Pouncy for his failure to obtain medical care; and count three charges him with filing the false report. If convicted, Pouncy faces a maximum penalty of 10 years in prison each for counts one and two, and 20 years in prison for count three.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Brandon Brown for the Western District of Louisiana and Special Agent in Charge Douglas A. Williams Jr. of the FBI New Orleans Field Office made the announcement.
The FBI New Orleans Field Office is investigating the case.
Assistant U.S. Attorney Seth Reeg for the Western District of Louisiana and Trial Attorney Erin Monju of the Civil Rights Division’s Criminal Section 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.
Following Significant Policing Reform Progress, Federal Judge Terminates Most Consent Decree Provisions for City of Seattle and Seattle Police DepartmentRead the Press Release
In response to a joint motion filed in March by the Justice Department and the City of Seattle, a federal judge terminated most provisions of a consent decree that led to significant policing reform. The court’s order recognizes the city’s consistent compliance with the core requirements of a 2012 consent decree regarding the Seattle Police Department (SPD). The order details the additional obligations that the city must take to continue the reform process.
According to the order, “SPD has made tremendous improvements in its policies, methods of operation and leadership with respect to the areas of use of force, stops and detentions and crisis intervention.” The court found that “the city has achieved sustained full and effective compliance, for at least two years, with the commitments set forth in the consent decree regarding crisis intervention, stops and detentions, bias-free policing, supervision and the Office of Police Accountability and terminate[d] the parties’ obligations” under those areas of the consent decree. For example:
-
After making changes to SPD’s policies and training on the use of force, SPD has reduced the use of serious force by 60%, and force is now used in less than one-quarter of one percent of all events to which officers respond.
-
To better respond to people experiencing behavioral health crises, SPD developed an advanced crisis intervention program in which civilian mental health professionals and non-police mobile crisis teams respond to behavioral health crisis incidents.
-
SPD developed policies and training to secure people’s rights during police investigative stops. The court monitor found that officers complied with legal and policy requirements in almost all instances it assessed.
“This ruling acknowledges the significant reforms implemented by the City of Seattle and the Seattle Police Department to ensure effective and nondiscriminatory policing for the community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The court’s order gives the city and police department the ability to focus on the areas that need additional attention. We commend the city, police department and the community for continuing to collaborate on constitutional and non-discriminatory policing which benefits all residents in the City of Seattle.”
“I commend the personnel of the Seattle Police Department whose dedication has transformed policing in Seattle,” said Acting U.S. Attorney Tessa Gorman for the Western District of Washington. “Hard work remains in how our police confront crowd control and disciplinary action for misconduct. We look forward to working with the department, the city accountability partners, the Community Police Commission and the citizens of Seattle to achieve these remaining reforms required by the consent decree.
The court order requires continued work related to use of force in the crowd management context, accountability and racial disparities. For example:
-
SPD must develop new crowd management policies, which must be approved by the court and independent monitor.
-
An independent monitor must review of the city’s accountability systems and provide a plan to identify and mitigate racial disparities in stops, detentions and the use of force.
-
The city must continue to measure whether the reforms required by the consent decree remain effective.
The Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office’s for the Western District of Washington’s Civil Division handled this matter.
The Civil Rights Division continues to prioritize constitutional policing and currently has pending investigations into police departments across the country, including in Memphis, Phoenix, New York City and Louisiana.
The consent decree, proposed agreement, as well as additional information about the Civil Rights Division, are available on its website at www.justice.gov/crt/special-litigation-section.
seattle_public_order.pdf-
Justice Department and Department of the Navy Announce Voluntary Elective Option for More Efficient Resolution of Camp Lejeune Justice Act ClaimsRead the Press Release
The Justice Department and the Department of the Navy (DON) today announced the finalization and publication of a voluntary process, called the “Elective Option,” to help veterans and others more quickly resolve qualifying claims under the Camp Lejeune Justice Act (CLJA) of 2022. This option supplements other processes currently available under the CLJA, which remain in place.
The CLJA is a provision of the Honoring our Promise to Address Comprehensive Toxics Act, which was signed into law on Aug. 10, 2022. The CLJA allows those who file claims and lawsuits to potentially recover for injuries caused by exposure to contaminated water at the Marine Corps Base Camp Lejeune from mid-1953 through 1987.
Established jointly by the Justice Department and DON, the new Elective Option provides a framework for the DON to resolve certain CLJA claims quickly, equitably and transparently. In order to be eligible for the Elective Option, a claimant must first submit an administrative claim to the DON. To date, more than 93,000 CLJA claims have been filed with the DON.
The Elective Option allows the DON to focus its review on a few key aspects of a CLJA claim, such as the type of injury alleged and the amount of time a claimant worked or resided at Camp Lejeune. Narrowing the scope of the review enables faster validation and, ultimately, extension of settlement offers. The Elective Option provides similar settlement offers to claimants with similar exposures and injuries with similar evidence of causation.
“The Elective Option is a critical step in bringing relief to qualifying claimants impacted by the contaminated water at Camp Lejeune, who will now have an avenue for receiving quick and early resolution of claims under the Camp Lejeune Justice Act,” said Associate Attorney General Vanita Gupta. “We are grateful for the continued partnership of the Department of the Navy and federal agencies in developing and administering this framework.”
“The Elective Option presented today should be of great interest to eligible Americans who seek a streamlined process to resolve their claims,” said Under Secretary of the Navy Erik Raven. “We recognize this takes a whole-of-government response, and along with DOD and DOJ, we are linked with Veterans Affairs and other federal agencies to support a fair and streamlined process. We are committed to ensuring that every valid Camp Lejeune claim is resolved fairly and as expeditiously as possible.”
Within the framework, the DON can make settlement offers to qualifying claimants with diseases that the Agency for Toxic Substances and Disease Registry (ATSDR) has determined are linked to the chemicals found in the water at Camp Lejeune. Award amounts are tiered, largely based on the ATSDR’s classification of the strength of the evidence linking the contamination with a particular disease and the amount of time the individual spent at Camp Lejeune.
Tier 1 Diagnoses: Claimants with diseases for which the ATSDR has substantiated evidence of causation – kidney cancer, liver cancer, non-Hodgkin’s lymphoma, leukemia and bladder cancer – would receive settlement offers of $450,000, $300,000 or $150,000, depending on whether the claimant was exposed to Camp Lejeune water for over five years, between one and five years or between 30 and 364 days, respectively.
Tier 2 Diagnoses: Claimants with diseases to which the ATSDR has linked possible evidence of causation – multiple myeloma, Parkinson’s disease, kidney disease (end stage renal disease), systemic sclerosis/systemic scleroderma – would receive settlement offers of $400,000, $250,000, or $100,000, depending on whether the claimant was exposed to Camp Lejeune water for over five years, between one and five years or between 30 and 364 days, respectively.
Claims involving death would receive an additional $100,000.
The Elective Option supplements other mechanisms for resolving claims currently available through the normal administrative claims or litigation processes. Claimants not eligible for the Elective Option may await finalization of their administrative claim or pursue litigation and engage in any broader settlement discussions occurring through court proceedings in the Eastern District of North Carolina. The Justice Department will screen already-filed lawsuits and will extend settlement offers in qualifying cases that are similar to awards under the Elective Option.
Those interested in learning more about the Elective Option should visit www.navy.mil/clja.
Individuals who think they qualify for relief under the CLJA can follow the instructions available on that site to submit a claim and provide requisite supporting documentation. There is no requirement to retain a lawyer to file a claim or subsequently pursue an expedited resolution. Claims that have already been filed with DON do not need to be refiled.
Payments under the Elective Option are not offset by the Department of Veterans Affairs (VA) disability benefits or VA medical care, and they do not impact ongoing treatment and support provided by the VA.
More information is available at www.navy.mil/clja.
View the Public Elective Option Guidance here.
Justice Department Files Sexual Harassment Lawsuit Against Ohio LandlordRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Joseph Pedaline, an owner and manager of residential rental properties, in Youngstown, Ohio, for engaging in sexual harassment in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the Northern District of Ohio, alleges that Joseph Pedaline sexually harassed female tenants at properties that he owned or managed in Youngstown since at least 2009. According to the complaint, Pedaline subjected tenants to repeated and unwelcome sexual comments, touched them without their consent, entered their homes without permission and offered to overlook late rent payments, waive rent or perform repairs in exchange for sexual contact. The lawsuit also alleges that Pedaline initiated evictions or threatened to evict tenants who refused his sexual advances.
“No tenant should have to endure sexual propositions, sexual comments or unwelcome physical contact from their landlord,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Sexual harassment in housing is wrong, immoral and illegal. The Justice Department will continue to hold landlords accountable when they violate federal civil rights laws.”
“Too often tenants with limited housing options are preyed upon by landlords, maintenance staff and others who have control over where they live,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “This lawsuit sends a message that the U.S. Attorney’s Office will not tolerate the exploitation of our vulnerable community members.”
The lawsuit seeks monetary damages to compensate persons harmed by the alleged harassment, a civil penalty to vindicate the public interest and a court order barring future discrimination.
The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Joseph Pedaline or YLP LLC, or who have other information that may be relevant to this case, may contact the Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, press 2 for sexual harassment and then press 01 for United States v. Joseph Pedaline to leave a message. Individuals may also send an email to [email protected] or submit a report online. Reports also may be made by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
The Justice Department launched its Sexual Harassment in Housing Initiative in October 2017. The department’s initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative, the department has filed 36 lawsuits alleging sexual harassment in housing and recovered over $10.8 million for victims of such harassment.
Pedaline ComplaintFlorida Man Pleads Guilty to Orchestrating $1.15 Million Tax Fraud SchemeRead the Press Release
A Florida man pleaded guilty today to conspiring to defraud the United States, filing a false tax return and to aiding and assisting the preparation of a false tax return.
According to court documents and statements made in court, Rafael Ramos, of Orlando, recruited clients and prepared tax returns on their behalf that falsely claimed banks and other financial institutions had withheld large amounts of taxes from the clients’ income, thereby entitling them to refunds from the IRS. To further the scheme, Ramos and his co-conspirators filed false documents with the IRS, purporting to have been issued by the banks, to support the false withholding information reported on the returns.
When the IRS initiated proceedings to collect the fraudulently-issued refunds, Ramos held meetings with his clients and attempted to obstruct the IRS’s efforts by providing them with frivolous correspondence to send to the IRS, instructing clients to falsely inform the IRS that they self-prepared their returns and telling clients to move funds out of their bank accounts to avoid IRS levies. In total, Ramos’s scheme caused a tax loss to the IRS of over $1.15 million.
Ramos is scheduled to be sentenced Nov. 30 and faces a maximum penalty of five years in prison for conspiracy and three years in prison for each false return count. 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 Roger B. Handberg for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Jeffrey McLellan, Ezra Spiro and Caroline Pearson of the Tax Division and Assistant U.S. Attorney Terry Livanos for the Middle District of Florida are prosecuting the case.
Associate Attorney General Vanita Gupta Statement on Preliminary Injunction Ruling in U.S. v. Abbott et al.Read the Press Release
The Justice Department’s Associate Attorney General Vanita Gupta made the following statement following a federal judge’s ruling on a motion for preliminary injunction by the Justice Department in the case U.S. v. Abbott et al.
“Today, a federal judge granted a preliminary injunction requiring Texas to remove its floating barrier from the middle of the Rio Grande and prohibiting Texas from constructing new barriers in the river. We are pleased that the court ruled that the barrier was unlawful and irreparably harms diplomatic relations, public safety, navigation, and the operations of federal agency officials in and around the Rio Grande.”
Maryland Security Guard Sentenced to Two Years in Prison for Tax EvasionRead the Press Release
A Maryland security guard was sentenced to 24 months in prison today for tax evasion.
In December 2022, Gaston Gilberto Reyes of Germantown was convicted of six counts of tax evasion following a jury trial. According to court documents and the evidence presented at trial, Reyes did not file income tax returns for the years 2011 through 2020 and thus did not report more than $1.6 million in income from his employment as an armed security guard at federal buildings in Maryland. In addition to not filing tax returns, Reyes provided his employers with false Forms W-4 claiming he was exempt from federal income tax withholding, causing little or no federal income taxes to be withheld from his wages. In total, Reyes caused a tax loss to the IRS of more than $330,000.
In addition to the term of imprisonment, U.S. District Judge George J. Hazel ordered Reyes to serve three years of supervised release and pay restitution in the amount of $219,167 to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Melissa S. Siskind and George Meggali of the Tax Division prosecuted the case.
Justice Department Secures Agreement in Sexual Harassment Lawsuit Against Baltimore County Fire DepartmentRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with Baltimore County, Maryland, for significant relief and compensation for victims of sexual harassment. The settlement resolves the department’s complaint alleging that the county, through the Baltimore County Fire Department (BCFD), violated Title VII by subjecting several female employees to a hostile work environment on the basis of their sex. Title VII is a federal statute that prohibits employment discrimination based on race, color, national origin, sex and religion and prohibits retaliation against employees for opposing discriminatory employment practices.
“Women deserve protection from sexual harassment and sex discrimination in the workplace, and this lawsuit and consent decree demonstrate the department’s commitment to that principle,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Like any other employer, fire departments must take prompt and appropriate actions to correct an ongoing hostile work environment. Addressing sexual harassment in the firefighting industry is critical to efforts to bring more women into a profession where they have faced historic rates of exclusion, marginalization and discrimination.”
According to the department’s complaint, filed today in the United States District Court for the District of Maryland, several female employees were subjected to a hostile work environment when a male coworker distributed nude and other inappropriate photographs of female BCFD employees to other coworkers, solicited such photographs from coworkers and posted the photos on a social media site. The complaint further alleges that BCFD failed to take prompt and appropriate actions to correct the ongoing hostile work environment. As alleged, BCFD failed to promptly and thoroughly investigate the harassment and failed to adequately communicate with the victims as the harassment came to light, perpetuating the hostile work environment that the female employees faced.
Under the terms of the consent decree, if approved by the court, BCFD will overhaul its process for investigating complaints of sexual harassment, provide periodic sexual harassment training to its employees and conduct a workplace climate survey to gather information to aid in efforts to keep the workplace free of harassment. The county will also pay $275,000 to compensate female employees that were harmed by the harassment.
“Every workplace should foster respect and dignity for all employees, period,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Our mission to protect civil rights extends to sexual harassment and employers should be on notice that we will vigorously enforce the laws. We are pleased that Baltimore County has agreed to take comprehensive steps to ensure that their employees feel safe, respected and valued at their workplace.”
This case stems from a charge of discrimination by a commissioner for the Equal Employment Opportunity Commission (EEOC) and investigated by the EEOC’s Baltimore office. The EEOC investigated the charge and found reasonable cause to believe that BCFD violated Title VII. After unsuccessful conciliation efforts, the EEOC referred the charge to the Justice Department.
“Sexual harassment in the workplace too often goes uncorrected,” said Director Rosemarie Rhodes of the EEOC Baltimore Office. “Allowing such behavior to go unchecked when it affects one victim of sexual harassment is too much, let alone when it affects at least eleven victims. It’s critical to remind victims that sexual harassment is against the law, they do not have to tolerate it at work, and they are protected when they complain.”
Employees with complaints of sexual harassment can report them to their local EEOC office or their respective state or local fair employment practices agencies. The contact information for each local EEOC office can be found at www.eeoc.gov/field-office.
The case is being handled by Trial Attorneys Shan Shah and Sharion Scott of the of Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Sarah Marquardt for the District of Maryland.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation is available on its websites at www.justice.gov/crt/ and www.justice.gov/crt/employment-litigation-section.
Cooperating Federal Contractor Resolves Liability for Alleged False Claims Caused by Failure to Fully Implement Cybersecurity ControlsRead the Press Release
Verizon Business Network Services LLC, of Ashburn, Virginia, has agreed to pay $4,091,317 to resolve False Claims Act allegations that it failed to completely satisfy certain cybersecurity controls in connection with an information technology service provided to federal agencies. In connection with the settlement, the United States acknowledged that Verizon took a number of significant steps entitling it to credit for cooperating with the government.
“When government contractors fail to follow required cybersecurity standards, they may jeopardize the security of sensitive government information and information systems,” said Deputy Assistant Attorney General Michael Granston of the Civil Division’s Commercial Litigation Branch. “We will continue to pursue knowing cybersecurity related violations under the Department’s Civil Cyber-Fraud Initiative and to provide credit in settlements to government contractors that disclose misconduct, cooperate with pending investigations and take remedial measures, all of which are critically important to protecting the nation against cyber threats.”
This settlement relates to Verizon’s Managed Trusted Internet Protocol Service (MTIPS), which is designed to provide federal agencies with secure connections to the public internet and other external networks. The settlement resolves allegations that Verizon’s MTIPS solution did not completely satisfy three required cybersecurity controls for Trusted Internet Connections with respect to General Services Administration (GSA) contracts from 2017 to 2021. After learning of the issues, Verizon provided the government with a written self-disclosure, initiated an independent investigation and compliance review of the issues and provided the government with multiple detailed supplemental written disclosures. Verizon cooperated with the government’s investigation of the issues and took prompt and substantial remedial measures.
“The United States should get the cybersecurity controls that it contracts and pays for to safeguard against cyber threats that could compromise critical information and systems,” said Acting Inspector General Robert C. Erickson of the GSA. “I appreciate the efforts of the investigative team that worked on this case.”
On Oct. 6, 2021, the Deputy Attorney General announced the department’s Civil Cyber-Fraud Initiative to hold accountable entities or individuals that put U.S information or systems at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols or knowingly violating obligations to monitor and report cybersecurity incidents and breaches. Information on how to report cyber fraud can be found here.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the GSA’s Office of Inspector General. The matter was handled by Fraud Section Senior Trial Counsel Christopher Terranova.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
SettlementOwner of Oregon Payroll Services Company Pleads Guilty to Employment Tax SchemeRead the Press Release
An Oregon man pleaded guilty today to willfully failing to pay more than $24 million in payroll taxes owed to the IRS.
According to court documents and statements made in court, Robert Kohnle of Lake Oswego, was the president, secretary, and chief executive officer of Real Benefits Group Inc., dba Aliat. As a professional employer organization, Aliat provided payroll and payroll-related services for its clients. Aliat was responsible, pursuant to service agreements with its clients, for receiving the payroll taxes withheld from the wages of clients’ employees, including federal income and Social Security and Medicare taxes, and paying those payroll taxes to the IRS.
Beginning in the fourth quarter of 2016 through the fourth quarter of 2022, Kohnle received payroll withholdings from Aliat’s clients but did not pay it over to the IRS as required by the client service agreements. Kohnle instead used the money to pay Aliat’s other expenses and creditors, including himself. In total, Kohnle caused a tax loss to the IRS of $24,816,602.
Kohnle is scheduled to be sentenced on Jan. 8, 2024, and faces a maximum penalty of five years in prison. 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 Natalie K. Wight for the District of Oregon made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Patrick Burns and Regina Jeon of the Justice Department's Tax Division are prosecuting the case.
Kansas Owner of Construction Firms Pleads Guilty to Employment Tax SchemeRead the Press Release
A Kansas woman pleaded guilty today to willfully failing to account for and pay over employment taxes to the IRS.
According to court documents and statements made in court, Sheryl Clanton of Bucyrus, Kansas, owned and operated McCorkendale Construction Inc., a business specializing in the construction and maintenance of underground infrastructure. Clanton was President of McCorkendale from 2006 through 2011 and was responsible for filing quarterly employment tax returns and collecting and paying federal income and Social Security and Medicare taxes withheld from employees’ wages to the IRS. For the first quarter of 2010 through the last quarter of 2011, however, Clanton did not pay approximately $980,536 in employment taxes owed to the IRS.
In 2011, Clanton abandoned McCorkendale due to its outstanding tax obligations and a bank mortgage foreclosure, and started McClan Construction LLC. From the second quarter of 2012 through the fourth quarter of 2017, Clanton did not pay approximately $1.1 million in employment taxes or file quarterly payroll tax returns as required by law.
Clanton also operated a third underground construction business, NJ Trenching LLC, organized in late 2011. Between 2012 and 2015, Clanton did not report or pay nearly $100,000 of employment taxes owed to the IRS on behalf of NJ Trenching.
In total, Clanton caused a tax loss to the IRS exceeding $2.2 million.
Clanton is scheduled to be sentenced on Dec. 14, and faces a maximum penalty of five years in prison. She also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Robert Kemins and Dominick Giovanniello of the Justice Department's Tax Division are prosecuting the case.
Federal Court Permanently Enjoins Tax Return Preparer in Texas and Orders Disgorgement of Tax Prep FeesRead the Press Release
A federal court in the Southern District of Texas has permanently enjoined a Galveston-area tax return preparer from preparing federal tax returns for others and, among other things, from owning, operating or franchising any tax return preparation business in the future.
The amended complaint alleged that Johnathan Perry, individually and dba X-Pert Taxes and JOHNATHAN PERRY, prepared over 4,000 federal income tax returns during the 2017-2022 filing seasons. According to the amended complaint, in a substantial number of these tax returns, the defendants significantly overstated the customers’ tax refunds by claiming fictitious employee business expenses, fabricating household help income, fabricating or inflating business losses and/or claiming education credits or fuel excise tax credits to which customers were not entitled.
The terms of the injunction order require that Perry disgorge $324,432 to the United States in tax preparation fees. The order further requires that Perry send notice of the injunction to each person for whom Mr. Perry, X-Pert Taxes or JOHNATHAN PERRY prepared federal tax returns. The order also requires Mr. Perry to post the injunction in all locations where he conducts business and on all social media accounts and websites used to advertise the tax preparation services.
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 as return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer, as well as steps taxpayers can take to get a jumpstart on filing. The IRS has launched a free directory of federal tax preparers and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $73,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the 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 here.
표제 VI (Title VI) 수사 해결을 위해 법무부와 오클라호마 법원 양해 각서 체결Read the Press Release
참고: 본 언론 보도는 다양한 언어로 번역되었습니다. 아래 번역을 참고하십시오.
워싱튼 -법무부가 오늘 민권 수사를 해결하고 영어 능력 제한(Limited English Proficiency, LEP)이 있는 모든 사람들을 위한 향상된 주 법원 접근성을 개선하기 위해 오클라호마 대법원 행정처(Administrative Office of the Courts, AOC) 와의 양해 각서(Memorandum of Understanding, MOU) 를 발표했습니다.
법무부는 Mayes 카운티 지방 법원이 가정 법원 사건 당사자 중 LEP가 있는 이에게
유의미한 접근성을 제공하지 않았다는 주장의 민원을 받았습니다. 법무부는 연방 재정
보조 수혜자의 인종, 피부색, 출신 국가에 의한 차별을 금지하는 1964년도 민권법의(Civil
Rights Act of 1964) 표제 VI 하 수사를 개시하였습니다. LEP가 있는 모든 법원
사용자들에게 유의미한 접근성을 제공하도록 AOC가 취한 긍정적 단계에 대응하여
법무부는 추후 표제 VI 수사를 중단하였습니다. 이러한 조치 중, AOC 는 소장에서 확인된
LEP가 있는 사람에게 무상으로 통역 서비스를 제공하였으며, 언어 접근 조정관을
채용하고 주정부 법이 된 법안을 제안하였습니다. 해당 법은 LEP 당사자에게 통역인
비용이 부과되지 않도록 합니다. 또한 법원 언어 통역과 번역 서비스를 지원하도록 전주
자금을 승인하였습니다.“사람들은 제한된 영어 능력으로 인해 불이익을 당해서는 안 되며 절차 및 운영에 공정하게 참여하는 데 필요한 언어 지원 서비스를 받는 데 어려움을 겪어서는 안 됩니다”라고 법무부 민권부의 Kristen Clarke 법무차관보가 말했습니다. “본 합의서는 영어 능력과 무관하게 모든 사람이 법원에 접근할 수 있도록 보장하는 모범 사례이며 오클라호마에서 제한된 영어 능력을 가진 법원 사용자의 장벽을 허무는 데 필요한 조치를 설명합니다.”
“새로운 주법과 MOU를 통해 오클라호마는 우리 주의 사법 접근성을 개선하겠다는
의지를 보여주었습니다”라고 오클라호마 북부 지역(Northern District of Oklahoma) 의
Clinton J. Johnson 검사가 말했습니다. “우리는 표제 VI 및 관련 민권법 준수를 위해 주
법원과의 협력에 최선을 다할 것입니다.”양해각서에 따라 AOC는 모든 민사 및 형사 소송 절차와 법원 운영에서 LEP가 있는 개인에게 구두 및 서면 언어 지원 서비스를 무료로 제공하고, 주 전체 언어 접근성 계획을 세우고 중요 문서의 번역을 추가할 예정입니다. AOC 는 또한 사례 관리 체계를 개선하여 언어 요구 사항 추적을 향상시키고, 언어 접근 민원 처리 절차 개발, 법원에 게시될 번역된 통역 서비스 통지 작성 및 배포, 법원 직원들을 위한 영상 원격 통역 안내를 작성 및 발행할 예정입니다.
이 사안은 미국 민권부의 검사들과 미국 오클라호마 북부 지방 검사실이 공동으로 진행했습니다. 민권부에 대한 추가 정보는 웹사이트 www.justice.gov/crt 에서 볼 수 있으며 제한된 영어 능력과 표제 VI에 대한 정보는 www.lep.gov 에서 볼 수 있습니다. www.civilrights.justice.gov/report/ 또는 미국 오클라호마 북부 지방 검사실에 www.justice.gov/usao-ndok/contact-us로 신고할 수 있습니다.
司法部與奧克拉荷馬州法院簽署諒解備忘錄以針對第六章(Title VI) 調查作出決議Read the Press Release
注：本新聞稿已翻譯成多種語言。請參見下方譯文。
華盛頓——司法部今天宣佈與奧克拉荷馬州最高法院、法院行政辦公室(Administrative Office of the Courts, AOC) 簽署諒解備忘錄 (Memorandum of Understanding, MOU)，針對一項民權調查作出決議並改善英語能力受限 (Limited English Proficiency, LEP)人士在奧克拉荷馬州法院訴諸法律的機會。
司法部收到一起投訴，指控梅耶斯縣地區法院 (Mayes County District Court)在一起家事法庭案件中未能為一名LEP人士提供有意義的訴諸法律的機會。司法部根據 1964 年《民權法案》(Civil Rights Act of 1964)第六章的條款展開調查，該章禁止聯邦財政援助的接受者基於種族、膚色和民族血統進行歧視。司法部隨後暫停了這項第六章調查，以回應AOC採取的積極措施，為所有LEP法院使用者提供有意義的訴諸法律的機會。除了採取其他行動外，AOC還向投訴中確定的LEP人士免費提供了口譯服務，聘請了一名語言服務獲取協調員，並推出了立法提案，該提案現已成為州法律。該法律取消了向LEP當事人收取的口譯費用。該法律還授權設立一項全州基金，用於支援法庭語言口譯和筆譯服務。
「人們不應因英語能力受限而受到懲罰，也不應在獲得公平參與法院訴訟和運作所需的語言協助服務方面遇到困難，」司法部民權司助理司法部長克裡斯汀·克拉克(Kristen Clarke)指出。「本協議是確保所有人無論其英語能力如何都能訴諸法律的典範，並概述了為奧克拉荷馬州英語能力受限的法院使用者消除障礙所需採取的行動。」
「透過這部新的州法律和MOU，奧克拉荷馬州表明了改善本州司法服務獲取的決心，」奧克拉荷馬州北區(Northern District of Oklahoma)美國聯邦檢察官克林頓J. 詹森(Clinton
J. Johnson)表示。「我們致力於與本州的法院合作，確保遵守第六章及相關民權法律。」
根據這份MOU，AOC將在所有民事和刑事訴訟程式以及法院運作中免費為LEP人士提供口頭和書面語言協助服務，將制定一套全州語言服務獲取計畫，並針對重要文檔提供更多翻譯。AOC還將改進其案件管理系統，以更好地跟蹤語言需求，制定一套語言服務獲取投訴程式，為法院製作和分發翻譯好的口譯服務通知，並為法院工作人員製作和發佈視訊遠端口譯指南。此事由民權司和奧克拉荷馬州北區美國聯邦檢察官辦公室的律師聯合開展。有關民權司的其他資訊可造訪其網站www.justice.gov/crt查閱，有關英語能力受限和第六章的資訊可造訪www.lep.gov網站查閱。公眾可透過www.civilrights.justice.gov/report/或奧克拉荷馬州北區美國聯邦檢察官辦公室www.justice.gov/usao-ndok/contact-us舉報可能存在的侵犯民權的行為。
司法部与俄克拉荷马州法院签署谅解备忘录以针对第六章(Title VI) 调查作出决议Read the Press Release
注：本新闻稿已翻译成多种语言。请参见下方译文。
华盛顿——司法部今天宣布与俄克拉荷马州最高法院、法院行政办公室(Administrative Office of the Courts, AOC) 签署谅解备忘录 (Memorandum of Understanding, MOU)，针对一项民权调查作出决议并改善英语能力受限 (Limited English Proficiency, LEP)人士在俄克拉荷马州法院诉诸法律的机会。
司法部收到一起投诉，指控梅耶斯县地区法院 (Mayes County District Court)在一起家事法庭案件中未能为一名LEP人士提供有意义的诉诸法律的机会。司法部根据 1964 年《民权法案》(Civil Rights Act of 1964)第六章的条款展开调查，该章禁止联邦财政援助的接受者基于种族、肤色和民族血统进行歧视。司法部随后暂停了这项第六章调查，以回应AOC采取的积极措施，为所有LEP法院使用者提供有意义的诉诸法律的机会。除了采取其他行动外，AOC还向投诉中确定的LEP人士免费提供了口译服务，聘请了一名语言服务获取协调员，并推出了立法提案，该提案现已成为州法律。该法律取消了向LEP当事人收取的口译费用。该法律还授权设立一项全州基金，用于支持法庭语言口译和笔译服务。
“人们不应因英语能力受限而受到惩罚，也不应在获得公平参与法院诉讼和运作所需的语言协助服务方面遇到困难，”司法部民权司助理司法部长克里斯汀·克拉克(Kristen Clarke)指出。“本协议是确保所有人无论其英语能力如何都能诉诸法律的典范，并概述了为俄克拉荷马州英语能力受限的法院使用者消除障碍所需采取的行动。”“通过这部新的州法律和MOU，俄克拉荷马州表明了改善本州司法服务获取的决心，”俄克拉荷马州北区 (Northern District of Oklahoma)美国联邦检察官克林顿 J. 约翰逊(Clinton J. Johnson)表示。“我们致力于与本州的法院合作，确保遵守第六章及相关民权法律。”
根据这份MOU，AOC将在所有民事和刑事诉讼程序以及法院运作中免费为LEP人士提供口头和书面语言协助服务，将制定一套全州语言服务获取计划，并针对重要文件提供更
多翻译。AOC还将改进其案件管理系统，以更好地跟踪语言需求，制定一套语言服务获取投诉程序，为法院制作和分发翻译好的口译服务通知，并为法院工作人员制作和发布视频远程口译指南。此事由民权司和俄克拉荷马州北区美国联邦检察官办公室的律师联合开展。有关民权司的其他信息可访问其网站www.justice.gov/crt查阅，有关英语能力受限和第六章的信息可访问www.lep.gov网站查阅。公众可通过www.civilrights.justice.gov/report/或俄克拉荷马州北区美国联邦检察官办公室www.justice.gov/usao-ndok/contact-us举报可能存在的侵犯民权的行为。
Watermark Retirement Communities to Pay $4.25 Million for Allegedly Receiving Kickback in Violation of the False Claims ActRead the Press Release
Watermark Retirement Communities LLC, a senior living community operator based in Tucson, Arizona, that manages 79 retirement homes across the country, agreed to pay $4.25 million to resolve allegations that it violated the False Claims Act by soliciting and receiving a kickback from a nationwide home health agency (HHA) operator in order to facilitate referrals from Watermark retirement homes.
The United States alleged that the HHA operator purchased two of Watermark’s HHAs in Arizona to induce referrals of Medicare beneficiaries living in Watermark residential communities. The scheme was designed around eight Watermark retirement homes in five states (Arizona, Connecticut, Delaware, Florida and Pennsylvania) where the two companies had overlapping operations. The United States alleged that from Jan. 1, 2014 through Oct. 31, 2020, Watermark caused the HHA operator to submit false claims for payments to Medicare for services provided to Medicare beneficiaries referred as a result of the kickback transaction. The Antikickback Statute prohibits parties who participate in federal health care programs from knowingly and willfully soliciting or receiving any remuneration in return for referring an individual to, or arranging for the furnishing of any item or services for which payment is made by, a federal health care program.
“It is imperative that decisions about the care provided to federal health care beneficiaries are not undermined by the payment of kickbacks,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s resolution demonstrates that the Department is committed to holding accountable not only those who offer kickbacks but also those who receive them.”
“Whether you pay them or receive them, kickbacks undermine the integrity of our health care system,” said U.S. Philip R. Attorney Sellinger for the District of New Jersey. “Patients need to know the health care referrals they receive are in their best interest, not in the best interest of someone else’s bottom line. Our office will always be on guard to prevent unscrupulous operators from trying to take financial advantage of our health care system.”
The settlement announced today includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by David Freedman, who was the former director of strategic growth for the HHA operator between 2009 and 2016. The qui tam provisions permit a private party to file an action on behalf of the United States and receive a portion of any recovery. As part of today’s resolution with Watermark, Freedman will receive approximately $765,000. In September 2021, the HHA operator entered into a settlement with the United States to resolve the claims against it arising out of the same transaction. See www.justice.gov/opa/pr/home-health-agency-operator-bayada-pay-17-million-resolve-false-claims-act-allegations-paying.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from the Department of Health and Human Services Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorneys Samson Asiyanbi and Daniel Meyler of the Civil Division’s Fraud Section and Assistant U.S. Attorney Jordann Conaboy for the District of New Jersey.
The case is docketed as United States ex rel. Freedman v. Bayada Home Health Care, Inc., Civ. No. 17-6267 (D.N.J.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Watermark Settlement Agreement