District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Readout of the Justice Department’s Sexual Abuse Facility Enhancement and ReviewRead the Press Release
Last week, the Justice Department completed its initial deployment of Sexual Abuse Facility Enhancement and Review (SAFER) teams to visit women’s facilities across the Federal Bureau of Prisons (BOP). Following these visits, the Deputy Attorney General has asked the SAFER teams to identify corrective actions and prepare recommendations as part of the Department’s ongoing efforts to root out sexual misconduct within the BOP.
The Deputy Attorney General launched the SAFER team project to visit women’s facilities in each of BOP’s six regions and engage with leadership, staff, and women in custody at those facilities. During each visit, the team reviewed the facility’s progress implementing the recommendations of the Department’s Sexual Misconduct Working Group, including its initiatives to promote timely and effective reporting consistent with the Prison Rape Elimination Act (PREA). The team also reviewed the facility’s conditions, medical and mental health services, reentry programming, and Special Housing Unit, and spoke directly with women in custody. In addition, the teams met with local non-profit organizations that contract with the BOP to provide support services and resources to survivors of sexual abuse.
Principal Associate Deputy Attorney General (PADAG) Marshall Miller led the first SAFER visit on June 9, and over the past six weeks, personnel from the Office of the Deputy Attorney General (ODAG) have led teams to visit the following women’s facilities:
- Federal Correctional Institution (FCI) Tallahassee, a low-security facility in Tallahassee, Florida;
- FCI Waseca, a low-security facility in Waseca, Minnesota;
- FCI Danbury, a low-security facility with an adjacent low-security satellite prison and minimum-security satellite camp in Danbury, Connecticut;
- Federal Detention Center (FDC) SeaTac, an administrative security federal detention center in Seattle;
- Federal Medical Center (FMC) Carswell, an administrative security federal medical center with an adjacent minimum security satellite camp in Fort Worth, Texas; and
- Federal Prison Camp (FPC) Alderson, a minimum-security federal prison camp in Alderson, West Virginia.
In addition to representatives from ODAG and BOP, SAFER teams included officials from across the Department, including the Office of the Attorney General (OAG), the Office of the Associate Attorney General (OASG), the Office for Access to Justice (ATJ), the Civil Rights Division (CRT), the Criminal Division (CRM), Executive Office for U.S. Attorneys (EOUSA), the FBI, the Office of Legal Policy (OLP), Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW). Representatives from U.S. Attorneys’ Offices also joined the SAFER team visits in their respective districts.
Metairie Man Indicted for Drug and Weapons OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today the unsealing of a four-count indictment returned on July 20, 2023, against ROOSEVELT COCKHERAN, age 39 and a resident of Metairie, Louisiana. COCKHERAN is charged in Count One with conspiracy to possess with intent to distribute cocaine in violation Title 21, United States Code, Section 846, in Count Two with possession with intent to distribute cocaine in violation of Title 21, United States Code, 841(a)(1) & (b)(1)(C), in Count Three with Possession of a Firearm in Furtherance of Drug Trafficking Crime in violation of Title 18, United States Code, Section 924(c) and in Count Four with Felon in Possession of Firearm in violation of Title, 18 United States Code, Section 922(g)(1). The indictment also contains a sentencing enhancement provision which alleges two qualifying prior serious drug felonies.
As to Count One, COCKHERAN faces a term imprisonment of not less than 10 years and a maximum term of life, a fine of $8,000,000 and 8 years of supervised release; as to Count Two, he faces a maximum term of imprisonment of 20 years, a $1,000,000 fine, and three years of supervised release; as to Count Three, he faces a mandatory consecutive term of five years imprisonment up to life imprisonment, a $250,000 fine and three years of supervised release; and as to Count Four, he faces a maximum term of imprisonment of 15 years, a $250,000 fine and three years of supervised release . Each count also carries a mandatory special assessment of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Jefferson Parish Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Mark A. Miller is assigned the prosecution.
Justice Department Files Complaint Against the State of Texas for Illegally Placing Floating Buoy Barrier in the Rio GrandeRead the Press Release
The Justice Department today filed a civil complaint against the State of Texas because the state has built a floating barrier, consisting of buoys strung together, in the Rio Grande River without the federal authorization that is legally required under the Rivers and Harbors Act. The complaint seeks to enjoin the building of the barrier and to require the state to remove it.
“We allege that Texas has flouted federal law by installing a barrier in the Rio Grande without obtaining the required federal authorization,” said Associate Attorney General Vanita Gupta. “This floating barrier poses threats to navigation and public safety and presents humanitarian concerns. Additionally, the presence of the floating barrier has prompted diplomatic protests by Mexico and risks damaging U.S. foreign policy.”
“The Rivers and Harbors Act is clear in prohibiting the placement of any unauthorized barriers or obstructions in the Rio Grande and other navigable waters of the United States,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We intend to seek the appropriate legal remedies, including the removal of such obstructions in the Rio Grande.”
“The Rio Grande is a significant stretch of the southern border of our country,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “We must all recognize that there are laws and policies in place – both domestic and international – to ensure the safety and security of everyone working, living and traveling along the river. These laws cannot be ignored, and my office will take and support the appropriate legal action to uphold them.”
The complaint alleges that, beginning earlier this month, Texas directed the placement of a floating barrier – buoys four to six feet in diameter strung together – in the Rio Grande, approximately two miles south of the Camino Real International Bridge in Eagle Pass, Texas. Governor Abbott has said the state may build more barriers as part of a broader effort called “Operation Lone Star,” which also includes placing concertina wire near the U.S.-Mexico border.
The complaint is lodged in U.S. District Court in the Western District of Texas.
The case is being litigated by the Environmental Defense Section of the Justice Department’s Environment and Natural Resources Division.
Leader of International Drug-Trafficking Organization Sentenced for Cocaine DistributionRead the Press Release
A leader of an international drug-trafficking organization (DTO) was sentenced today to life in prison for conspiring to distribute five kilograms or more of cocaine for importation into the United States.
According to court documents, between 2003 and April 2016, Gerardo Gonzalez-Valencia, aka Lalo, 45, was a leader of Los Cuinis, a DTO responsible for importing large quantities of cocaine from South America, Mexico, and elsewhere into the United States. Los Cuinis is closely aligned with the Cartel de Jalisco Nueva Generación (CJNG), which is based in the State of Jalisco in Mexico. Together, Los Cuinis and CJNG form one of the largest, most dangerous, and most prolific drug cartels in Mexico. They are responsible for trafficking significant quantities of illegal drugs into the United States and employing extreme violence to further that objective.
“Gonzalez-Valencia’s prosecution marks another step in the Justice Department’s pursuit of the top leadership of drug-trafficking organizations like Los Cuinis and the CJNG,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The significant sentence imposed today also reflects the magnitude of harm these drug-trafficking organizations wreak on our communities. The Criminal Division will continue to hold accountable those like Gonzalez-Valencia, who profit from importing large quantities of dangerous substances into the United States and who support the extraordinary violence committed in furtherance of that objective.”
Gonzalez-Valencia personally invested in and coordinated multi-ton shipments of cocaine for importation into the United States. Some of these shipments were interdicted by law enforcement, including the seizure of approximately 280 kilograms of cocaine from a semi-submersible interdicted by the U.S. Coast Guard and the seizure of 750 kilograms of cocaine concealed in frozen shark carcasses destined for the United States and seized by Mexican law enforcement. Gonzalez-Valencia also directed the murders of rival drug traffickers and used and supplied weapons in furtherance of the drug-trafficking conspiracy.
“Today’s sentencing sends a clear message to the leaders of drug cartels that DEA will stop at nothing to dismantle the criminal networks that threaten the safety and health of the American people,” said DEA Administrator Anne Milgram. “Under Gonzalez-Valencia’s leadership, Los Cuinis – a cartel closely aligned with the Jalisco (CJNG) Cartel – shipped massive quantities of cocaine into the United States and killed rivals that threatened the cartels’ trafficking organizations. The men and women of DEA are working relentlessly to hold all drug traffickers accountable that seek to profit from the Jalisco Cartel’s violent and deadly drug trafficking network.”
This case is supported by the Organized Crime and Drug Enforcement Task Force (OCDETF).
The DEA Los Angeles Field Division investigated the case with the assistance from the U.S. Marshals Service, Investigative Operations Division.
Acting Assistant Deputy Chief Kaitlin Sahni and Trial Attorneys Kate Naseef and Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case. The Justice Department’s Office of International Affairs provided significant assistance.
The Justice Department thanks Uruguayan authorities for their assistance in securing the arrest and extradition of Gonzalez-Valencia.
Florida Attorney Charged in Fraudulent Charitable Contribution Tax SchemeRead the Press Release
A federal grand jury in Fort Lauderdale returned a 34-count indictment, unsealed today, charging an attorney with conspiracy to defraud the United States, mail and wire fraud conspiracy, aiding and assisting in the preparation of false tax returns, conspiracy to obstruct an official proceeding, and other crimes arising out of his promotion of an illegal tax shelter scheme involving false charitable contribution tax deductions.
According to the indictment, Michael L. Meyer of Davie, Florida, organized and sold an illegal tax shelter called the Ultimate Tax Plan to assist high-income individuals in reducing their taxes. Meyer allegedly marketed the scheme as a way for clients to claim charitable contribution tax deductions without giving up control over the assets they purportedly donated to charity and advised that clients could still access their donated assets for their own personal use through tax-free loans and execute an “exit strategy” to buy back their donations at a significantly discounted rate. The indictment further alleges that, to execute the scheme, Meyer prepared the boilerplate transaction documents, prepared appraisals of the purported donations, assisted clients in filing false tax returns, and controlled the charities that received the purported donations. For several clients, Meyer and his co-conspirators allegedly created backdated transaction documents to make it appear that a client had made a charitable contribution in a prior year and, in turn, assisted clients to falsely claim charitable tax deductions for the prior year.
The indictment further alleges that Meyer represented clients in audits with the IRS, during three of which Meyer allegedly provided false documents to the IRS.
In April 2018, the United States filed a Complaint for Permanent Injunction and Other Relief against Meyer seeking to enjoin him from, among others, continuing to promote the Ultimate Tax Plan. The United States allegedly issued civil subpoenas to witnesses requesting records related to the Ultimate Tax Plan. In response to the civil subpoenas, Meyer and his co-conspirators allegedly prepared backdated documents and directed clients to submit those backdated documents in response to the subpoenas. Meyer also allegedly provided backdated documents in response to document requests from the United States. In April 2019, a federal district court entered a permanent injunction against Meyer. The indictment alleges that Meyer violated the terms of his permanent injunction through various means, including filing tax returns, assisting clients in taking charitable tax deductions, and providing advice on charitable tax deductions.
Since 2013, Meyer and his co-conspirators allegedly earned more than $10 million from selling the Ultimate Tax Plan. Meyer allegedly used that income to purchase a multi-million-dollar estate and a luxury vehicle collection that included Lamborghinis, Rolls Royces, Mercedes Benzes, a Bentley, and a Ferrari.
Meyer made his initial court appearance today before U.S. Magistrate Judge Alicia M. Otazo-Reyes of the Southern District of Florida. If convicted, Meyer faces a maximum penalty of five years in prison for conspiracy to defraud the United States, twenty years in prison for mail and wire fraud conspiracy, three years in prison for each false return count, three years for each count of endeavoring to impede the internal revenue laws, and twenty years each for obstructing and conspiracy to obstruct an official proceeding. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Michael Boteler and Trial Attorneys Casey S. Smith and Andrew Ascencio of the Justice Department’s Tax Division are prosecuting the case with assistance from the United States Attorney’s Office for the Southern District of Florida.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Secures Agreement with Staffing Services Company to Resolve Immigration-Related Employment Discrimination ClaimRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with FM Talent Source LLC, a Maryland-based staffing services company. The settlement resolves the department’s determination that FM Talent violated the Immigration and Nationality Act (INA) when the company rescinded a job offer from a non-U.S. citizen and delayed his eventual hiring due to unfounded suspicions based on his citizenship status.
“Employers cannot make hiring decisions based solely on assumptions or stereotypes about an applicant’s citizenship status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will vigorously enforce the Immigration and Nationality Act’s nondiscrimination mandate to ensure that all job applicants are treated fairly.”
The department’s investigation began when a lawful permanent resident complained that FM Talent rescinded his job offer for a contract position with the federal government because of his citizenship status. The department found that, although the federal contract did not prohibit FM Talent from hiring a lawful permanent resident for the position, FM Talent rescinded the applicant’s offer due to unfounded suspicions that his status as a non-U.S. citizen, he would delay the hiring process. FM Talent renewed the worker’s job offer after the department opened its investigation, but the company’s discriminatory actions delayed the worker’s start date. Under the INA, employers cannot unlawfully discriminate based on citizenship, immigration status or national origin at any stage of the hiring process.
Under the terms of the settlement, FM Talent will pay a civil penalty to the United States and back pay to the affected worker. FM Talent will also train its staff on the INA’s anti-discrimination provision, revise its policies and procedures and be subject to departmental monitoring for a three-year period.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Find more information on how employers can avoid discrimination when hiring and recruiting on IER’s website. Learn more about how IER protects workers’ rights in this video. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected]; or visit IER’s English and Spanish websites. Sign up for email updates from IER.
Settlement AgreementJustice Department Secures Agreement with Wyoming School District to Address Discrimination Based on Sex and DisabilityRead the Press Release
The Justice Department announced a settlement agreement with Teton County School District #1 in Wyoming to resolve the department’s investigation into alleged peer harassment based on sex and disability and retaliation. The department conducted its investigation under Title IV of the Civil Rights Act of 1964 and Title II of the Americans with Disabilities Act (ADA).
The department’s investigation focused on the school district’s response to students’ complaints of sexual harassment and to reports of a broader school climate in which female students were subjected to sexualized insults and derogatory comments in the hallways, in classes and on social media. The agreement will address the district’s ineffective responses to such complaints, which left female students vulnerable to continued harassment by their peers, including retaliatory harassment for reporting discrimination. The agreement also will address the district’s response to peer harassment based on disability and improve the district’s policies and training on how to identify and support students who exhibit signs of depression, anxiety, self-harm or suicidality resulting from harassment.
“Young women and girls should feel safe to learn in schools and not forced to endure a sexually hostile environment,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “It is vital that schools respond swiftly and effectively to reports of harassment and that they recognize and support students who show signs of trauma or have trauma-related disabilities. The reforms required by our settlement agreement will help to create meaningful change and a safer learning environment for all students across the district. The Justice Department is committed to holding all schools accountable to their obligation to provide every student an educational environment free from discrimination.”
The district cooperated fully with the department’s investigation and took proactive steps to begin revising and strengthening its anti-harassment policies and its multi-tiered support systems to help ensure that students who experience discrimination receive the proper services. Under the agreement, the district will build on these efforts by working with a consultant to review and revise its policies and practices, respond appropriately to every discrimination complaint and adopt appropriate supportive and remedial measures. The district also will, among other things:
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Make reasonable modifications to relevant policies, practices and procedures to support students who exhibit signs of trauma;
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Prohibit and take reasonable steps to prevent retaliation;
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Implement school climate assessments and an engagement plan;
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Train its civil rights coordinator and other staff on their obligations under the district’s antidiscrimination policies and complaint resolution procedures; and
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Institute internal monitoring and auditing procedures to ensure compliance and regularly evaluate the overall success of the district’s antidiscrimination program.
Protecting students from harassment and other discrimination is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/report.
Resolution Agreement-
Former Employee of Medical Device Manufacturer Pleads Guilty to Forging Two FDA Clearance Letters for Medical DevicesRead the Press Release
A Philadelphia-area man pleaded guilty today for his role in distributing medical devices without U.S. Food and Drug Administration (FDA) clearance, the Department of Justice announced.
Peter Stoll III, 34, pleaded guilty to one felony count of violating the Federal Food, Drug, and Cosmetic Act (FDCA) by causing the introduction of misbranded and adulterated medical devices into interstate commerce, in violation of 21 United States Code, Section 331(a) and 331(a)(2).
According to court documents, Stoll was a regulatory affairs specialist at a medical device manufacturer located in the Eastern District of Pennsylvania and was responsible for making submissions to the FDA that were required before the company could sell its medical devices. In pleading guilty, Stoll admitted that in 2017 he created two false letters that purported to show that FDA had granted clearance to sell two different medical devices. As a result, the company illegally sold tens of thousands of dollars’ worth of medical devices throughout the United States.
Stoll was responsible for shepherding two of the company’s devices through the FDA’s 510(k) clearance process: the ELAN-4 Air Drill, a high-speed surgical drill used for bone cutting, sawing, and drilling, and the JS Series SterilContainer S2, a reusable sterilization container for medical instruments. Stoll admitted that he never submitted any 510(k) documents to FDA regarding either device. Instead, Stoll created a fraudulent letter using FDA letterhead and bearing the forged digital signature of an FDA official that falsely stated that FDA had cleared the ELAN-4 Air to be marketed. Stoll later created another, similarly fraudulent letter on FDA letterhead for the SterilContainer JS Series medical device.
“Subverting the FDA clearance process for medical devices can put patients’ lives at risk,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will work with its law enforcement partners to prosecute anyone who ignores their obligations regarding consumer safety.”
“FDA must be notified and given the opportunity to clear certain medical devices before they are distributed into interstate commerce,” said Assistant Commissioner for Criminal Investigations Justin D. Green of the FDA. “Not obtaining this required clearance is bad enough, but impersonating FDA to cover up this failure is truly egregious and puts patients at risk. The FDA’s Office of Criminal Investigations (OCI) protects the American public by aggressively investigating allegations involving FDA-regulated products and violations of the FDCA. In this case, OCI worked with the Justice Department to ensure a just resolution, and we applaud the exceptional work done by the team.”
Stoll pleaded guilty before U.S. District Judge Edward G. Smith. He is scheduled to be sentenced on Nov. 7. He faces a maximum penalty of three years’ in prison, a one-year period of supervised release, a $250,000 fine and $100 special assessment.
FDA’s Office of Criminal Investigations investigated the case.
Trial Attorney Max J. Goldman and Assistant Director Ross S. Goldstein of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney M. Beth Leahy for the Eastern District of Pennsylvania 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.
El Departamento de Justicia llega a un acuerdo con una compañía de contratación para resolver una acusación de discriminación en el empleo relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con FM Talent Source LLC, una compañía de servicios de contratación radicada en Maryland. El acuerdo resuelve la determinación del Departamento que FM Talent vulneró la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) cuando la compañía rescindió una oferta de trabajo a un no ciudadano de los EE. UU. y aplazó su eventual contratación debido a sospechas infundadas con base en su estatus de ciudadanía.
«Los empleadores no pueden basar sus decisiones en lo que se refiere a la contratación únicamente en presunciones o estereotipos sobre el estatus de ciudadanía de un postulante», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles hará cumplir con firmeza el mandato no discriminatorio de la ley de Inmigración y Nacionalidad con el fin de garantizar que se trate de manera justa a todo postulante de trabajo».
La investigación del Departamento comenzó cuando un residente permanente legal se quejó que FM Talent rescindió su oferta de trabajo para un puesto como contratista con el gobierno federal por motivos de su estatus de ciudadanía. El Departamento halló que FM Talent rescindió la oferta del postulante debido a sospechas infundadas de la compañía que el estatus del postulante como no ciudadano de los EE. UU. retrasaría el proceso de contratación. FM Talent renovó la oferta de trabajo del postulante después de que el Departamento inició su investigación, pero las acciones discriminatorias aplazaron la fecha de comienzo del trabajador. Conforme a la INA, los empleadores no pueden, en ningún punto durante el proceso de contratación, discriminar de manera ilícita, con base en el estatus migratorio o de ciudadanía o bien por la nacionalidad de origen.
Según los términos del acuerdo, FM Talent pagará una sanción civil a los Estados Unidos y pagos retroactivos al trabajador afectado. Por otra parte, FM Talent capacitará a su personal en cuanto a la disposición antidiscriminatoria de la INA, revisará sus políticas y procedimientos y se someterá a la supervisión del Departamento durante un período de tres años.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Hay más información disponible en el sitio web de la IER sobre cómo los empleadores pueden evitar la discriminación en los procesos de contratación y reclutamiento. Aprenda más sobre cómo la IER protege los derechos de los trabajadores en este video. Para más información sobre protecciones en virtud de las leyes migratorias contra la discriminación por parte de empleadores, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea en vivo o vea una presentación a la carta; envíe un correo electrónico a [email protected]; o visite los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico de la IER.
Settlement AgreementDoctor and Office Manager Charged for $1.3M COVID-19 Loan Fraud SchemeRead the Press Release
An indictment was unsealed yesterday charging a Nevada doctor and his wife with fraudulently obtaining approximately $1.3 million in COVID-19 pandemic relief loans through the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP).
According to court documents, Kofi Sarfo, 58, of Las Vegas, is a medical doctor and the owner and president of Vista Medical Associates, a Las Vegas medical practice. His wife, Rose Sarfo, 54, also of Las Vegas, is the office manager and treasurer of Vista Medical Associates. Kofi and Rose Sarfo allegedly conspired to submit false loan applications to obtain EIDL and PPP pandemic relief funds. Rather than spending the money on their business as represented in the loan applications, the Sarfos allegedly used at least some of the funds to purchase stocks and cryptocurrency.
The Sarfos are charged with one count of conspiracy to commit wire fraud and four counts of wire fraud. In addition, Kofi Sarfo is charged with one count of money laundering. If convicted, they each face a maximum penalty of 20 years in prison for conspiracy to commit wire fraud and for each count of wire fraud. Kofi Sarfo also faces a maximum penalty of 10 years in prison on the money laundering charge.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Special Agent in Charge Spencer L. Evans of the FBI Las Vegas Field Office made the announcement.
The FBI Las Vegas Field Office is investigating the case.
Trial Attorney Kyle Crawford of the Criminal Division’s Fraud Section is prosecuting the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Automaker Official Agrees to Plead Guilty to Conspiring to Violate the Clean Air ActRead the Press Release
WASHINGTON – Emanuele Palma, 43, of automaker group FCA US, pleaded guilty today to a felony as a result of conspiring to violate the Clean Air Act (CAA). As alleged in court documents, Palma and others conspired to withhold information from the United States Environmental Protection Agency (EPA) regarding the design, calibration and function of the emissions control systems on more than 100,000 Model Year 2014, 2015 and 2016 Jeep Grand Cherokee and Ram 1500 diesel vehicles. The co-conspirators also misrepresented the vehicles’ emissions of pollutants, fuel efficiency and compliance with U.S. emissions standards.
According to court documents, Palma pleaded guilty to Count 1 of the Superseding Indictment – originally fined in 2019 – charging him with conspiring to violate the Clean Air Act. Sentencing is set for Oct. 17 in front of U.S. District Judge Nancy Edmunds, sitting in Detroit, Michigan.
“Senior auto officials at FCA US, including Mr. Palma, conspired to circumvent pollution standards and obtain EPA certifications for hundreds of thousands of SUVs and pickup trucks under false pretenses,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Today’s actions reflect the Justice Department’s continued and steadfast commitment to enforcing the Clean Air Act and holding individuals accountable for attempting to circumvent our Nation’s pollution standards.”
“Today’s guilty plea demonstrates EPA’s commitment to holding accountable those in management positions who intentionally withhold key information from regulators,” said Acting Assistant Administrator Larry Starfield of EPA’s Office of Enforcement and Compliance Assurance. “Mr. Palma’s guilty plea accompanies the earlier conviction of Fiat Chrysler for defrauding both the EPA and customers, as well as creating an unfair advantage over automakers who complied with the law.”
“Mr. Palma and those he worked with concealed material information from the EPA about how certain of Fiat Chrysler’s diesel engines operated. Our environmental laws depend on companies being honest and transparent with the EPA about the environmental impact of their products,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “The conduct in this case falls well short of that standard, and today’s guilty plea provides a measure of accountability for this deceptive conduct.”
According to Palma’s admissions and court documents, beginning at least as early as 2010, FCA US developed a new 3.0-liter diesel engine for use in FCA US’s Jeep Grand Cherokee and Ram 1500 vehicles (the Subject Vehicles) that would be sold in the United States. As alleged in the Superseding Indictment related to this plea agreement, Palma and others developed and calibrated the 3.0-liter diesel engine. Their responsibilities included calibrating several software features in the vehicles’ emissions control systems to meet emissions standards for nitrogen oxides (NOx), a family of poisonous gases that are formed when diesel fuels are burned at high temperatures, while also achieving best-in-class fuel efficiency targets set by FCA US.
The Superseding Indictment alleges that the emissions control systems on the Subject Vehicles was purposely calibrated to produce less NOx emissions on the federal test procedures, or driving “cycles,” than when the Subject Vehicles were being driven by FCA US’s customers in the real world. One method that was used to effectuate this goal was called “T Eng,” a software function that affects the rate of exhaust gas recirculation.
According to court documents, Palma and his co-conspirators agreed not to disclose the existence of the T Eng function to the EPA. Palma knew that T Eng was properly the subject of regulation by the EPA, and in agreeing to withhold this information, he acknowledged concealing material information from that regulatory body. As a result of this concealment, material information was omitted from FCA’s applications for Certificates of Conformity from the EPA, which authorize the company to sell vehicles pursuant to the Clean Air Act.
This plea is related to the corporate plea and sentencing of FCA US, LLC, in August 2022, where FCA US LLC, was sentenced and ordered to pay a fine of over $96.1 million; to satisfy a forfeiture money judgment of over $203.5 million; and to serve a three-year term of organizational probation.
Assistant Chief Michael T. O’Neill of the Criminal Division’s Fraud Section, White Collar Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse for the Eastern District of Michigan, and Senior Litigation Counsel Todd W. Gleason of the Environment and Natural Resources Division’s Environmental Crimes Section are prosecuting the case. The FBI and EPA’s Criminal Investigation Division are investigating this case.
New Jersey Owner of Auto Repair Shop Sentenced to Prison for Filing a False Corporate Tax ReturnRead the Press Release
A New Jersey man was sentenced today to one year and one day in prison for filing a false corporate income tax return with the IRS.
According to court documents and statements made in court, Gabriel Ferrari of Edison, New Jersey, owned and operated Buses and Trucks, Inc., an automotive repair business located in Linden, New Jersey. In 2011, Ferrari used business funds to pay for personal items, including gambling on horse races. Ferrari concealed this diversion of business income by not disclosing it to his return preparer, thus causing the preparation and filing of a false corporate tax return. Furthermore, Ferrari did not pay employment taxes in the amount of $291,600 based on an unreported cash payroll.
In addition to the term of imprisonment, U.S. District Judge Stanley R. Chesler ordered Ferrari to serve one year of supervised release and to pay approximately $87,926 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Ann M. Cherry of the Justice Department’s Tax Division and Assistant U.S. Attorney Andrew M. Trombley of the District of New Jersey prosecuted the case.
Justice Department Finds that Arizona Prisons Discriminate Against People with Vision DisabilitiesRead the Press Release
The Justice Department announced today its finding that the Arizona Department of Corrections, Rehabilitation and Reentry (ADCRR) violated the Americans with Disabilities Act (ADA) by discriminating against individuals with vision disabilities, including those who are blind or have low vision. In a public letter issued to ADCRR, the department detailed its findings following its investigation of multiple complaints by incarcerated individuals and asked ADCRR to work with the department to resolve the civil rights violations identified.
The department’s investigation found that ADCRR violated the ADA in several ways. First, ADCRR failed to reasonably modify its policies or provide auxiliary aids and services, such as brailled materials and displays, audio recordings and screen reader software, to ensure that people with vision disabilities could communicate effectively while incarcerated. Second, ADCRR failed to provide accessible processes for people with vision disabilities to request accommodations or file disability-related complaints. Third, ADCRR over relied on other incarcerated people to help individuals with vision disabilities without properly training or supervising those providing help. Based on these findings, the department determined that ADCRR denied individuals with vision disabilities an equal opportunity to participate in and benefit from its services, programs and activities.
“People with disabilities do not surrender their civil rights at the prison gate,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to ensuring that people with disabilities held in jails and prisons, including those with vision impairments, have an equal opportunity to participate in and benefit from prison programs and to work towards rehabilitation. Ensuring that our jails and prisons are accessible for people with disabilities is part of our overall work to address the conditions of confinement in our country.”
“Incarcerated Arizonans with disabilities are entitled to the same rights as all other inmates,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “This is important. Access to services and programming while incarcerated helps one succeed upon reentry into society. We appreciate the dialogue to date with the Arizona Department of Corrections and look forward to collaborative solutions to overcome barriers to equality.”
The department’s letter provides ADCRR with written notice of its findings and details the minimum remedial measures necessary to address them.
This matter is being handled by the Civil Rights Division’s Disability Rights Section and the U.S. Attorney’s Office for the District of Arizona.
The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities, including people who are incarcerated. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt.
The letter can be viewed here.
Justice Department and FTC Seek Comment on Draft Merger GuidelinesRead the Press Release
The Justice Department and the Federal Trade Commission (FTC) are releasing a draft update of the Merger Guidelines (Draft Guidelines), which describe and guide the agencies’ review of mergers and acquisitions to determine compliance with federal antitrust laws. The goal of this update is to better reflect how the agencies determine a merger’s effect on competition in the modern economy and evaluate proposed mergers under the law. Both agencies encourage the public to review the draft and provide feedback through a public comment period that will last 60 days.
“Unchecked consolidation threatens the free and fair markets upon which our economy is based,” said Attorney General Merrick B. Garland. “These updated Merger Guidelines respond to modern market realities and will enable the Justice Department to transparently and effectively protect the American people from the damage that anticompetitive mergers cause.”
“Competitive markets and economic opportunity go hand in hand. Today, we are issuing draft guidelines that are faithful to the law, which prevents mergers that threaten competition or tend to create monopolies. As markets and commercial realities change, it is vital that we adapt our law enforcement tools to keep pace so that we can protect competition in a manner that reflects the intricacies of our modern economy. Simply put, competition today looks different than it did 50 — or even 15 — years ago,” said Assistant Attorney General Jonathan Kanter of the Antitrust Division. “There will be a substantial process for the public to review and provide comments before we finalize these guidelines.”
“Open, competitive, resilient markets have been a bedrock of America’s economic success and dynamism throughout our nation’s history. Faithful and vigorous enforcement of the antitrust laws is key to maintaining that success,” said FTC Chair Lina M. Khan. “With these draft Merger Guidelines, we are updating our enforcement manual to reflect the realities of how firms do business in the modern economy. Informed by thousands of public comments — spanning healthcare workers, farmers, patient advocates, musicians, and entrepreneurs — these guidelines contain critical updates while ensuring fidelity to the mandate Congress has given us and the legal precedent on the books.”
The Justice Department and FTC protect competition through enforcement of the antitrust laws and other federal competition statutes. Since 1968, the agencies have issued and revised Merger Guidelines to enhance transparency and promote awareness of how the agencies carry out that charge with respect to mergers and acquisitions.
The Draft Guidelines build upon, expand, and clarify frameworks set out in previous versions. At the outset, the Guidelines give an overview of 13 principles, or “guidelines,” that the agencies may use when determining whether a merger is unlawfully anticompetitive under the antitrust laws. These guidelines are not mutually exclusive, and a given merger may implicate multiple guidelines. The document then describes in greater depth the frameworks and tools that may be used when analyzing a merger with respect to each guideline.
The 13 Guidelines are:
- Mergers should not significantly increase concentration in highly concentrated markets;
- Mergers should not eliminate substantial competition between firms;
- Mergers should not increase the risk of coordination;
- Mergers should not eliminate a potential entrant in a concentrated market;
- Mergers should not substantially lessen competition by creating a firm that controls products or services that its rivals may use to compete;
- Vertical mergers should not create market structures that foreclose competition;
- Mergers should not entrench or extend a dominant position;
- Mergers should not further a trend toward concentration;
- When a merger is part of a series of multiple acquisitions, the agencies may examine the whole series;
- When a merger involves a multi-sided platform, the agencies examine competition between platforms, on a platform, or to displace a platform;
- When a merger involves competing buyers, the agencies examine whether it may substantially lessen competition for workers or other sellers;
- When an acquisition involves partial ownership or minority interests, the agencies examine its impact on competition; and
- Mergers should not otherwise substantially lessen competition or tend to create a monopoly;
The agencies have amended the Merger Guidelines several times since the first Merger Guidelines were released in 1968, including in 1982, 1984, 1992, 1997, 2010, and 2020. In January 2022, the agencies announced a broad initiative to evaluate potential updates and revisions to the Horizontal Merger Guidelines, issued in 2010, and the Vertical Merger Guidelines issued in 2020.
Following a public comment period, which included a request for information, more than 5,000 members of the public — including consumers, workers, state attorneys general, academics, businesses, trade associations, practitioners, and entrepreneurs — contributed feedback. The agencies also conducted four listening sessions that highlighted the potential for mergers and acquisitions to undermine open, vibrant, and competitive markets in industries ranging from food and agriculture to health care.
In revising the Merger Guidelines, the agencies focused on three core goals. First, the Draft Guidelines should reflect the law as written by Congress and interpreted by the highest courts. The Guidelines are built around statutory text and relevant case precedent, citing cases in order to clarify the connection between the law and the analytic frameworks described. The Draft Guidelines also make clear that they are not a substitute for the law itself, and do not create new rights or obligations. Second, the Draft Guidelines should be accessible, increasing transparency and awareness. Third, the Draft Guidelines should provide frameworks that reflect the realities of our modern economy and the best of modern economics and other analytical tools.
The public is invited to provide comments to the Draft Guidelines at www.regulations.gov/docket/FTC-2023-0043 for a period of 60 days. The deadline is Sept. 18. The agencies will use the public comments to evaluate and update the draft before finalizing the Guidelines. For a detailed fact sheet on the Draft Guidelines, please visit www.justice.gov/atr/d9/2023-draft-merger-guidelines.
U.S. Department of Justice, Federal Trade Commission, Federal Communications Commission and Other Federal and State Law Enforcement Agencies Announce Results of Nationwide Initiative to Curtail Illegal Telemarketing OperationsRead the Press Release
The Justice Department, Federal Trade Commission (FTC), and Federal Communications Commission (FCC) announced today a crackdown on telemarketing operations responsible for billions of illegal calls to U.S. consumers. The U.S. Postal Inspection Service, Social Security Administration Office of the Inspector General and other law enforcement partners, including attorneys general from all 50 states and the District of Columbia, joined the announcement.
Today’s announcement caps approximately a year of enforcement actions taken by federal and state agencies to combat the scourge of illegal telemarketing, including robocalls and scam calls. In the last year, the department has pursued approximately 90 cases against illegal telemarketing operations and those who facilitate those illegal calls. This initiative, “Operation Stop Scam Calls,” targets telemarketers, including those who use telephone calls to commit fraud, as well as those who facilitate illegal telephone calls. Enforcement actions targeted lead generators who deceptively collect consumers’ telephone numbers and then provide those telephone numbers to robocallers and others (falsely representing that these consumers have consented to receive calls), as well as Voice over Internet Protocol (VoIP) service providers who facilitate tens of billions of illegal robocalls every year. Significant actions also were taken against individuals and entities who unjustly profited by facilitating the movement of money from scam call victims to fraudsters.
“Illegal telephone calls interrupt cherished time with family and friends and, when they are used to commit fraud, can be financially and emotionally devastating,” said Deputy Assistant Attorney General Arun G. Rao of the Justice Department's Civil Division, Consumer Protection Branch, who appeared at a press conference in Chicago announcing the initiative. “The department and its partners are committed to pursuing those who make and facilitate these calls.”
“Today, government agencies at all levels are united in fighting the scourge of illegal telemarketing. We are taking action against those who trick people into phony consent to receive these calls and those who make it easy and cheap to place these calls,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “The FTC and its law enforcement partners will not rest in the fight against illegal telemarketing.”
“The FCC is committed to using every tool at its disposal to crack down on illegal robocalls and protect the US communications network,” said Chief Loyaan Egal of the FCC’s Enforcement Bureau. “We, alongside our partners, will not let up in tracking, prosecuting, and penalizing the bad actors in this space and protecting consumers.”
Cases brought by the department targeted both foreign and domestic telemarketing operations. These cases ranged from actions targeting fraudsters who directly contacted victims to actions targeting those who provided scam call operators with the means to perpetrate their schemes. The department’s actions contributed to the collective actions, over 180, taken by the federal and state partners participating in Operation Stop Scam Calls.
The department’s Consumer Protection Branch brought nine civil actions in partnership with the FTC, which collectively alleged conduct involving billions of robocalls. Four of these cases involved lawsuits against VoIP providers that transmitted illegal phone calls. Some of these calls were scams arising from foreign call centers, such as calls by fraudsters pretending to be government agencies or impersonating e-commerce companies. Defendants, as alleged in the government’s complaints, continued to transmit illegal calls even after being warned that those calls were scam pitches. These cases also included a resolution with multinational payment processing company Nexway, arising from a lawsuit that alleged that the company processed credit card payments for India-based Tech Live Connect and other foreign clients that committed telemarketing fraud via tech support scams.
Cases brought by the department also involved criminal charges against those alleged to have made illegal phone calls or facilitated such calls. Many of these cases involved foreign fraud operations that victimized older adults. The department prosecuted perpetrators of various lottery fraud schemes, in which consumers were falsely told they had won a large prize but must first pay money to receive that prize.
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In three separate matters brought by the Consumer Protection Branch, three individuals were extradited from Jamaica. Two have since pleaded guilty.
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The Criminal Division’s Fraud Section secured a nearly 133-month sentence in a Costa Rica-based lottery scheme.
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The U.S. Attorney’s Office for the District of Arizona secured a 160-month sentence for a leader of an international fraud ring who distributed lead lists containing the personal information of thousands of victims.
Additional lottery fraud-related criminal matters include those brought by the U.S. Attorney’s Offices for the District of Connecticut, the Eastern District of California, the Eastern District of New York, the District of South Carolina, the District of Nebraska, the Northern District of Florida, and the Northern District of Ohio.
The Justice Department and its partners urge consumers to be on the lookout for illegal calls, to take steps to minimize the number of illegal calls received, and to report any scam calls to law enforcement.
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Callers may pressure you to send money by trying to scare you. They may pretend to be someone you know who is in trouble, a government agency, or a major company. These are fraudsters. Hang up.
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Don’t trust your caller ID. It can be faked.
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If you answer the telephone and hear a recorded message instead of a live person, it’s potentially a robocall trying to sell you something. It is probably illegal and likely a scam.
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Only call a telephone number you know is real.
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Make sure your number is on the Do Not Call Registry and consider using your telephone’s call blocking options or getting a call blocking app or service.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. To review a list of common transnational elder fraud scams, many facilitated by telephone calls, visit www.justice.gov/civil/consumer-protection-branch/transnational-elder-fraud-strike-force.
To learn more about the department’s elder fraud efforts, visit www.justice.gov/elderjustice. If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. 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.
For more information on unwanted calls, including steps people can take to avoid robocall scams and to hear examples of illegal calls, visit www.ftc.gov/calls, which is also available in Spanish at www.ftc.gov/llamadas.
Some of the cases referenced in today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Rosie Hidalgo Sworn in as Director for the Office on Violence Against WomenRead the Press Release
The Justice Department announced that Rosie Hidalgo was sworn in today as the Director of the Office on Violence Against Women (OVW). As director, she will spearhead the Department’s principal efforts in confronting gender-based crimes. OVW provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to survivors of domestic violence, dating violence, sexual assault, and stalking, and oversees more than $700 million annually for grant programs authorized under the Violence Against Women Act (VAWA).
The Senate confirmed Hidalgo on July 11 in a bipartisan vote, making her the first Senate-confirmed director to lead OVW since 2012. Hidalgo’s career, spanning over 25 years, has been dedicated to eradicating gender-based violence. Her work as a public interest attorney, national policy advocate, and more recently as a White House advisor, culminates in her new role leading OVW. Before her current appointment, Hidalgo served as a special assistant to President Biden and senior advisor on gender-based violence at the White House Gender Policy Council. She also previously held a position at OVW as Deputy Director of Policy from 2014 to 2017.
“I am proud to swear in Rosie Hidalgo as the first Senate-confirmed Director of the Justice Department’s Office on Violence Against Women in 11 years,” said Attorney General Merrick B. Garland. “This is a historic affirmation of the Department's commitment to reducing gender-based violence, supporting survivors, and holding perpetrators accountable. Rosie has both the experience and the dedication to lead the Office’s essential work of protecting women, girls, and all those affected by domestic violence, dating violence, sexual assault, and stalking. I am confident that her return to the Department will further that crucial mission.”
“The Office on Violence Against Women is vital to implementing the Violence Against Women Act and providing leadership in combating domestic violence, sexual assault, and stalking,” said Deputy Attorney General Lisa O. Monaco. “Rosie’s leadership of OVW will strengthen those efforts and build on the Department’s commitment to meeting the needs of survivors of sexual violence.”
“Rosie Hidalgo has been a champion for survivors for years. Her experience and passion make her ideally suited to lead OVW, which has been steadfast in its mission to deploy the resources and tools communities need to address the needs of survivors,” said Associate Attorney General Vanita Gupta. “Rosie's track record of working diligently to support survivors of gender-based violence, and in particular, survivors from underserved and historically marginalized communities, makes her an ideal leader for OVW.”
“I am honored to have this opportunity to join colleagues at the Office on Violence Against Women and the Department of Justice to help advance our nation’s commitment to preventing and addressing domestic violence, dating violence, sexual assault, stalking, and other forms of gender-based violence,” said Director Rosie Hidalgo. “The renewal and strengthening of the Violence Against Women Act last year, along with increases in VAWA funding, enable us to enhance access to safety, justice, and holistic services for survivors, and support efforts to strengthen and broaden the coordinated community response.”
Hidalgo is also a former senior director of public policy for Casa de Esperanza: National Latin@ Network for Healthy Families and Communities, a national resource center with a focus on providing training, research, and policy advocacy to prevent and end domestic violence and sexual assault. Her public service work includes a detail to the Office of the Vice President during the Obama administration, working with the White House Advisor on Violence Against Women. She also served on the Biden Foundation’s Advisory Council for Ending Violence Against Women and on the American Bar Association’s Commission on Domestic and Sexual Violence.
She is a graduate of Georgetown University and the New York University School of Law.
Michigan Insurance Salesman Sentenced to Prison for Tax and Bankruptcy CrimesRead the Press Release
A Michigan man was sentenced to 36 months in prison today following his conviction in February of filing false tax returns, making false statements to a bankruptcy court and making false statements to the Justice Department’s Tax Division.
According to court documents and evidence presented at trial, Donald Stanley LaVigne, formerly of Lake Orion, Michigan, did not report insurance commissions and other income on tax returns he filed with the Internal Revenue Service (IRS) for 2013 through 2019. In letters he sent to the IRS, LaVigne also falsely claimed that these commissions were not income to him.
When LaVigne filed for bankruptcy in 2018, he did not disclose the IRS as a creditor on the schedules attached to his bankruptcy petition even though he knew he owed the IRS five years’ worth of taxes. On one document he filed in the bankruptcy case, LaVigne also understated his income for 2016 and 2017.
After he was notified that he was the target of a federal investigation, LaVigne sent a letter to the Tax Division in which he falsely claimed that his bankruptcy attorney had reviewed his 2017 income tax return and advised him that it was “correct and complete.” In fact, his bankruptcy attorney testified at trial that he had never advised LaVigne that his 2017 income tax return was accurate.
In addition to the term of imprisonment, U.S. District Judge David M. Lawson also ordered LaVigne to serve two years of supervised release and pay restitution to the IRS in the amount of $80,732.11.
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 Catriona M. Coppler of the Justice Department’s Tax Division prosecuted the case.
Court Finds State of Florida Violates the Americans with Disabilities Act by Institutionalizing Children with DisabilitiesRead the Press Release
The U.S. District Court for the Southern District of Florida ruled on Friday that the State of Florida violates the rights of children with complex medical needs by keeping some children unnecessarily institutionalized in nursing facilities, while placing other children at serious risk of unnecessary institutionalization.
Following a two-week bench trial in May, the court found that the children in nursing facilities are capable of living in the community. Based on the testimony of experts and family members during the trial, the court also found that parents and guardians of institutionalized children overwhelmingly want their children to live at home, but that they have not been given meaningful options other than institutional placement. The court’s decision, coming after nearly a decade of litigation, marks a major turning point in the treatment of children with disabilities in Florida and vindicates their right to community integration.
The court heard from many families who struggled desperately to keep their children at home despite a lack of services, and others who had no choice but to place their children in nursing homes because they could not get the help they needed. For example, parent Heather Patten testified about having to place her son in a nursing home when he was a toddler, telling the court, “I was scared, and I didn’t feel like I had a choice. I felt like there was no choice.” Another parent, Martin Carrizales, testified that for his disabled teenage stepson, “The help that they would give is that they would put him in a home but I would not be able to take care of him, and that is not what I wanted for him.”
“This is a momentous decision impacting hundreds of vulnerable children and their families,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The court’s ruling sends a clear message that children with complex medical needs deserve to grow up with the love and support of their families and should not be confined to nursing facilities where they are stripped apart from their communities. The Civil Rights Division is strongly committed to ensuring that people with disabilities are not isolated from society but are fully integrated into their communities.”
“This important ruling will help Florida families of disabled children keep and care for their children at home by requiring increased access to medical support and services,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We look forward to seeing the systematic changes in Florida needed to prevent the unnecessary institutionalization of children with complex medical needs.”
The department’s lawsuit challenged the State of Florida’s policies that violated the Americans with Disabilities Act (ADA) and resulted in children with disabilities living and growing up in nursing facilities, separated from their families, friends and community. To remedy its violation, Florida must take steps to ensure that children with complex medical needs can access the services they need to live in their own homes and communities. Florida must also develop transition plans for institutionalized children and engage families to ensure that they can make informed choices about where their children live.
Approximately 140 children with disabilities are currently housed in three pediatric nursing facilities across Florida, and many more are at risk of entering these institutions due to a shortfall of services, including home nursing care. These children live with a range of medical conditions and disabilities, and many are dependent on medical technology such as ventilators. Under the ADA and the Supreme Court’s landmark decision in Olmstead v. L.C. – which was decided over 24 years ago – Florida is required to serve children with disabilities in the most integrated setting appropriate to their needs, as long as the children or their guardians do not oppose community integration.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint.
Businessman Sentenced for $3.5M Foreign Conduit Contribution SchemeRead the Press Release
A businessman with dual citizenship in Lebanon and the United States was sentenced today to an additional year and eight months in prison for his role in funneling at least $3.5 million in unlawful contributions from the United Arab Emirates (UAE) to unwitting political committees in the United States.
According to court documents, George A. Nader, 64, served as an advisor to senior UAE government officials during the relevant period. Nader conspired with co-defendant Ahmad “Andy” Khawaja to transfer $4.9 million to facilitate unlawful contributions to unwitting political committees in order to gain access to and influence with a then-candidate for President of the United States and others in connection with the 2016 U.S. presidential election. Nader’s company in the UAE transferred the funds to Khawaja’s company in the United States under the guise of a legitimate business transaction. Specifically, Nader and Khawaja entered into a false licensing agreement on behalf of their respective companies to disguise the multimillion-dollar transfer of funds as a legitimate commercial transaction involving the transfer of software from Khawaja’s company to Nader’s company. Nader and Khawaja further concealed the scheme by surreptitiously communicating through an encrypted messaging system with coded language about the transfer of funds and their hosting of and attendance at fundraising and campaign-related events.
Nader used the same encrypted messaging system to inform UAE government officials about his political activities in the United States. For example, on or about June 7, 2016, Nader reported to a senior UAE government official via encrypted messaging system that he “Had a terrific meeting with my Big Sister H[.] You will be most delighted!”; on or about June 29, 2016, Nader reported to the same UAE official: “Meeting with Big Lady went extremely well.”; and on or about July 27, 2016, Nader followed up with the same official: “I am catching up with key figures in both camps and have been developing a steady, consistent and constructive relationship with both camps!”
In total, Nader and Khawaja used at least $3.5 million of the UAE funds to make unlawful contributions to unsuspecting political committees in the United States, causing the political committees to submit materially false statements and reports to the Federal Election Commission unwittingly.
Following the 2016 election, Khawaja, through his company, made a $1 million contribution to the unwitting inaugural committee of the U.S. President-Elect. In connection with this contribution, Khawaja obtained tickets to the U.S. Presidential inauguration in January 2017, and Khawaja used the tickets to attend the inauguration with Nader as his guest.
In December 2019, Khawaja was indicted for his role in the scheme. Nader is currently serving a five-year prison term on unrelated charges in the Eastern District of Virginia and will begin serving the sentence he received today at the conclusion of the five-year term.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI Washington Field Office investigated the case.
Senior Litigation Counsel Victor R. Salgado of the Criminal Division’s Public Integrity Section (PIN) prosecuted the case. Michelle K. Parikh, Tanya D. Senanayake, Michael J. Romano, and James C. Mann were previously assigned to the case as PIN Trial Attorneys and made substantial contributions.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Departments of Justice and Commerce and the European Commission Reaffirm Shared Values, Welcome Finalized EU-U.S. Data Privacy FrameworkRead the Press Release
Attorney General Merrick B. Garland hosted Secretary of Commerce Gina Raimondo and European Commissioner for Justice Didier Reynders for a meeting at the Justice Department today marking the European Union (EU)’s recognition of the adequacy of the EU-U.S. Data Privacy Framework (DPF).
“The EU-U.S. Data Privacy Framework reflects the strength of the partnership between the United States and the European Union as well as our shared commitment to upholding the rule of law, protecting individual privacy, and keeping the public safe,” said Attorney General Merrick B. Garland. “We are grateful to our European partners for the years of work and cooperation that brought us to this point, and we look forward to continuing our work together to implement these important new data privacy safeguards.”
“The DPF is a testament to the strength of the U.S.-EU relationship, and it reflects our joint commitment to promoting economic opportunity while protecting individual privacy rights,” said U.S. Secretary of Commerce Gina Raimondo. “Now, businesses – large and small – will be able to access a streamlined and affordable mechanism to transfer data between our jurisdictions. To meet the needs of businesses, the Commerce Department launched the DPF program website today, giving companies a one-stop-shop where they can sign up for the DPF program and get important information about its benefits.”
“The EU-U.S. Data Privacy Framework represents a significant achievement for safe and trusted transatlantic data flows,” said European Commissioner for Justice Reynders. “The new framework guarantees the fundamental right of Europeans for the protection of their personal data and brings legal certainty for companies on both sides of the Atlantic. Today’s meeting is the result of months of intense negotiations based on shared values and trust with my U.S. counterparts. It shows the EU and the U.S. are like-minded partners that can work together to find solid solutions to complex issues.”
Last week, the Departments of Justice and Commerce welcomed the European Commission’s adequacy decision for the EU-U.S. Data Privacy Framework, to which President Biden and European Commission President von der Leyen agreed in March 2022. Transatlantic data flows underpin more than $7 trillion in cross-border trade and investment per year and create greater economic opportunities for companies and citizens on both sides of the Atlantic. The DPF will be a valuable tool for businesses of all sizes, including small and medium, that are participating in the transatlantic economy, providing an affordable and straightforward means of transferring personal data consistent with EU law. The adoption of the adequacy decision on July 10 by the European Commission establishes a basis in EU law for the transfer of personal data from EU countries to the United States by businesses in both America and Europe using the DPF. This determination will also facilitate transfers through other EU legal mechanisms, including Standard Contractual Clauses and Binding Corporate Rules. The EU’s adoption of the adequacy decision was made possible by the fulfillment of the commitments the United States made in the EU-U.S. Data Privacy Framework (EU-U.S. DPF), announced by Presidents Biden and von der Leyen in March 2022:
- On Oct. 7, 2022, President Biden issued Executive Order 14086 on Enhancing Safeguards for United States Signals Intelligence Activities, which bolstered an already rigorous array of privacy and civil liberties safeguards for U.S. signals intelligence activities. It also created an independent and binding mechanism enabling individuals in qualifying states, as designated under the Executive Order, to seek redress if they believe their personal data was collected through U.S. signals intelligence in a manner that violated applicable U.S. law.
- Also on Oct. 7, 2022, and pursuant to that Executive Order, Attorney General Garland signed a new regulation establishing a Data Protection Review Court (DPRC). The DPRC will independently review determinations made by the Civil Liberties Protection Officer of the Office of the Director of National Intelligence in response to qualifying complaints sent by individuals through appropriate public authorities that allege certain violations of U.S. law in the conduct of U.S. signals intelligence activities.
- On June 30, Attorney General Garland designated the EU and the three additional countries making up the European Economic Area (EEA) as “qualifying states” – contingent on the adoption of an adequacy decision – for purposes of implementing the redress mechanism established under Executive Order 14086.
- The Office of the Director of National Intelligence confirmed on July 3, that U.S. intelligence agencies have adopted implementing procedures as required by the Executive Order.
Two Men Plead Guilty to $67M Medicare Fraud SchemeRead the Press Release
Two Florida men pleaded guilty last week for their roles in a scheme to defraud Medicare by submitting over $67 million in false claims for genetic testing and durable medical equipment that patients did not need and that the defendants procured with kickbacks.
The pleas came after four days of trial in the Southern District of Florida.
According to court documents, Daniel M. Carver, 36, of Boca Raton, owned and managed call centers that he used to conduct deceptive telemarketing campaigns targeting Medicare beneficiaries to solicit them for unnecessary genetic testing and durable medical equipment. Louis “Gino” Carver, 32, of Delray Beach, worked for these call centers and acted as a straw owner for a laboratory that submitted false genetic testing claims. The Carvers and their co-conspirators paid kickbacks and bribes to telemedicine companies in exchange for completed doctors’ orders, sold doctors’ orders to laboratories and durable medical equipment companies in exchange for kickbacks, forged doctors’ and patients’ signatures, and tricked medical providers into ordering medically unnecessary genetic testing. Between January 2020 and July 2021, the scheme resulted in the submission of over $67 million in false claims to Medicare for medically unnecessary genetic tests and durable medical equipment.
Daniel Carver pleaded guilty to conspiracy to commit health care fraud and wire fraud and conspiracy to defraud the United States and to pay and receive kickbacks. He faces a maximum penalty of 25 years in prison. Louis Carver pleaded guilty to conspiracy to commit health care fraud and faces a maximum penalty of 10 years in prison. Both men are scheduled to be sentenced on Dec. 5. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In addition to last week’s guilty pleas, five other defendants in this case have pleaded guilty and are awaiting sentencing. Three defendants are scheduled for a trial set to commence on Sept. 26.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorneys Patrick Queenan, Reginald Cuyler Jr., and Andrew Tamayo of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment and an information are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Electronic Health Records Vendor NextGen Healthcare Inc. to Pay $31 Million to Settle False Claims Act AllegationsRead the Press Release
NextGen Healthcare Inc. (NextGen), an electronic health record (EHR) technology vendor, has agreed to pay $31 million to resolve allegations that NextGen violated the False Claims Act (FCA) by misrepresenting the capabilities of certain versions of its EHR software and providing unlawful remuneration to its users to induce them to recommend NextGen’s software.
“Electronic health records are an essential part of our health care system” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “Every day, millions of patients and health care providers across the country rely on such records to accurately identify and transmit vital health information. The Civil Division is committed to protecting the integrity of the electronic health records software that is available to providers and the process by which they decide which software to select.”
The American Recovery and Reinvestment Act of 2009 established the Medicare and Medicaid EHR Incentive Program to encourage health care providers to adopt and demonstrate their “meaningful use” of EHR technology. Under the program, the U.S. Department of Health and Human Services (HHS) made incentive payments to eligible health care providers that adopted certified EHR technology and met certain requirements relating to their use of the technology. To obtain certification for their product, companies that develop and market EHR technology are required to demonstrate that their product(s) satisfies all applicable HHS-adopted certification criteria; the company must also identify any software components on which their EHR relies to perform the criteria. Developers must first pass testing performed by an independent, accredited testing laboratory authorized by HHS, and then obtain and maintain certification by an independent, accredited certification body authorized by HHS.
In a complaint filed in conjunction with the settlement, the United States contends that NextGen falsely obtained certification for its software in connection with the 2014 Edition certification criteria published by HHS’s Office of the National Coordinator. Specifically, the government alleges that NextGen relied on an auxiliary product designed only to perform the certification test scripts, which concealed from the certifying entity that NextGen’s EHR lacked critical functionality. The government alleges that, consequently, the EHR that NextGen ultimately released to its users lacked certain required functionalities, including the ability to record vital sign data, translate data into required medical vocabularies, and create complete clinical summaries.
In its complaint, the government also alleges that NextGen violated the Anti-Kickback Statute, which prohibits anyone from offering or paying, directly or indirectly, any remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. In its complaint, the government contends that, notwithstanding this prohibition, NextGen knowingly gave credits, often worth as much as $10,000, to current customers whose recommendation of NextGen’s EHR software led to a new sale. The government alleges that other remuneration, including tickets to sporting events and entertainment, was also provided to induce purchases and referrals.
“Electronic health records play a pivotal role in the provision of safe, effective health care, and the testing and certification process of the EHR Incentive Program was intended to provide assurances to providers that their EHR can perform certain important functions,” said U.S. Attorney Nikolas P. Kerest for the District of Vermont. “With this settlement, our office has now resolved five investigations into misconduct by EHR companies, demonstrating our commitment to ensuring that EHR companies are held responsible for their misrepresentations.”
“Medical providers must be able to rely on electronic health records systems to correctly document and process important health data for continuity of patient care,” said Special Agent in Charge Maureen R. Dixon for the HHS, Office of the Inspector General (HHS-OIG). “We will continue to work with our valuable law enforcement partners to evaluate allegations brought under the False Claims Act and ensure the integrity of Medicare programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Toby Markowitz and Elizabeth Ringold, health care professionals at a facility that used NextGen’s software. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblowers in this case will receive $5,580,000. The qui tam case is captioned United States ex rel. Markowitz et al. v. NextGen Healthcare Inc., Case No. 2:18-cv-195 (D. Vt.).
The investigation and pursuit of this matter illustrate the government’s emphasis on combating health care fraud, including in the health care technology arena. One of the most powerful tools in this effort is the FCA. 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 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 Vermont. Investigative support and assistance was provided by the Department of Health and Human Services, Office of Counsel to the Inspector General and OIG Office of Investigations.
The matter was handled by Fraud Section Attorneys Christelle Klovers and Kelley Hauser and Assistant U.S. Attorney Lauren Almquist Lively for the District of Vermont.
The claims in the relators’ and the government’s complaints are allegations only and there has been no determination of liability.
Settlement ComplaintSeven More Individuals Charged in Connection with Illegal Gambling Businesses in OhioRead the Press Release
A federal grand jury in Cleveland, Ohio, returned five indictments, unsealed today, charging a total of ten individuals, three of whom were previously charged, with illegal gambling, tax and/or other related offenses.
According to the indictments, nine defendants owned or operated illegal gambling businesses (“IGBs”) in Canton, Ohio, including Skilled Shamrock, Redemption, Plaza 777, Gametastic, Gametastik, Belden Connection 777, Café 62, Got Skillz, and Skillz 777.
Stephanie Condric
One indictment charges that Stephanie Condric of Canton, Ohio, allegedly co-owned and operated Gametastic. Condric and others allegedly concealed their ownership of Gametastic by putting the business in the name of a nominee and reported some of its payroll under the name of a nominee business. According to the indictment, Condric and her co-conspirators failed to report all of Gametastic’s payroll on employment tax returns filed with the IRS. Condric also allegedly failed to report her share of Gametastic’s profits on her individual income tax returns for 2016 and 2017.
Christos Karasarides, Christopher Karasarides, Ronald DiPietro, Thomas Helmick
In May 2021, a grand jury returned a superseding indictment charging Ronald DiPietro (a Certified Public Accountant), Thomas Helmick, and Jason and Rebecca Kachner with tax and gambling offenses. In 2022, a second superseding indictment charged DiPietro with tax evasion and added Christos Karasarides who worked with DiPietro to provide false information to the IRS. Jason and Rebecca Kachner, who are married, pleaded guilty in July 2022.
A third superseding indictment now adds Christopher Karasarides. Christopher Karasarides and his father, Christos Karasarides, both of Canton, Ohio are charged with, among other violations, conspiring to defraud the United States. The indictment alleges that Christos Karasarides fraudulently attempted to compromise and settle his more than $3.1 million tax debt with the IRS by (1) submitting false information to the IRS about his interest in and income from IGBs, (2) filing false income tax returns, and (3) hiding his income and assets, including his ownership and income from Skilled Shamrock, Redemption, and Plaza 777. Christos Karasarides allegedly spent millions in cash between 2013 and 2019 for cars, golf and other expenses at a country club, credit card charges, and purported loans for businesses with which he was associated The indictment alleges that Christopher helped conceal his father’s assets from the IRS by serving as a nominee owner of some of his father’s businesses In addition, Christopher allegedly filed false individual tax returns for 2017 through 2020 reporting that he was the shareholder in a particular business when, in fact, Christos Karasarides was the true shareholder.
Melissa Bragg
Melissa Bragg of Canton, Ohio, is charged in a separate indictment with conducting Belden Connection 777, an illegal gambling business, from approximately 2013 to July 11, 2018.
Michael Moneypenny
Michael Moneypenny of Norton, Ohio, is charged in a separate indictment with four counts of conducting illegal gambling businesses, arising from his involvement in Skilled Shamrock, Redemption, Gametastic, and Gametastik. Moneypenny allegedly operated a business repairing and selling slot machines, and also leased slot machines to gambling businesses in Ohio and Florida.
Isaiah Worlow, Steven Fluharty, and Tiffany Kerekes
Isaiah Worlow, Steven Fluharty, and Tiffany Kerekes are charged in a fifth indictment with conducting illegal gambling businesses related to Got Skillz, Skillz 777, and Café 62.
Stephanie Condric made her initial court appearance today before U.S. District Magistrate Judge Amanda M. Knapp of the Northern District of Ohio. If convicted, Condric faces a maximum penalty of five years in prison for conspiring to impede and impair the functions of the IRS, five years for conspiring to own and operate an illegal gambling business, five years for conducting an illegal gambling business, and three years for subscribing a false return.
Christopher Karasarides made his initial court appearance today before U.S. District Judge Donald Nugent of the Northern District of Ohio. If convicted, Christopher Karasarides faces a maximum penalty of five years in prison for the conspiracy count and three years in prison for each false tax return count.
Melissa Bragg made her initial appearance today before U.S. District Court Judge John R. Adams of the Northern District of Ohio. If convicted, she faces a maximum penalty of five years in prison for owning and operating an illegal gambling business.
Michael Moneypenny made his initial appearance today before U.S. District Court Magistrate Judge Amanda M. Knapp of the Northern District of Ohio. If convicted, he faces a maximum penalty of five years in prison for each count of owning and operating an illegal gambling business.
Christos Karasarides, Tiffany Kerekes, Isaiah Worlow, and Steven Fluharty will make their initial appearances at a later date.
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 Interim U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS-Criminal Investigation, the Stark County, Ohio, Prosecutor’s Office, the U.S. Department of Treasury Office of Inspector General, Homeland Security Investigations, the Ohio Casino Control Commission, and the Ohio Organized Crime Investigations Commission – Major Crimes Task Force are investigating the case.
Trial Attorneys Sam Bean and Richard M. Rolwing of the Justice Department’s Tax Division and Assistant U.S. Attorney Aaron Howell of the Northern District of Ohio are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Queens Acupuncture Business Owner Pleads Guilty to Causing the Filing of False ReturnsRead the Press Release
A New York woman pleaded guilty today to aiding and assisting the preparation of a false tax return.
According to court documents and statements made in court, Alice Bixuan Zhang of Queens, New York, co-owned and operated Wellife Physical Therapy and Acupuncture PLLC (“Wellife”) and Welling Physical Therapy and Acupuncture PLLC (“Welling”), both of which had locations throughout New York City. Zhang, along with Nikki B. Yu, who pleaded guilty in October 2020, established and used a series of purported management companies to conceal acupuncture business income from taxation. Zhang and Yu diverted funds from Welling and Wellife and did not report those funds to the IRS. Rather, Zhang and Yu cashed checks, drawn on Welling and Wellife accounts and made payable to the purported management companies, at a check-cashing business and then provided false and incomplete information to their tax return preparers by not disclosing the cashed amounts. This scheme to conceal income resulted in a tax loss to the IRS of over $784,000.
Sentencing is scheduled for December 14, 2023. Zhang faces a maximum penalty of three years in prison. She also faces a period of supervised release, restitution, and monetary penalties. U.S. District Judge Ann M. Donnelly 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. Mr. Goldberg thanked the U.S. Attorney’s Office for the Eastern District of New York for their assistance in the matter.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Thomas F. Koelbl and Trial Attorney Ezra Spiro of the Justice Department’s Tax Division are prosecuting the case.
Louisiana Man Pleads Guilty to Dogfighting ConspiracyRead the Press Release
A Louisiana man – Antonio Damon Atkins, 35, of Baton Rouge – pleaded guilty today for his part in a conspiracy to sponsor, exhibit, possess and transport animals in an interstate animal fighting venture, and to possessing an animal in such a venture, all in violation of the Animal Welfare Act.
To date, six other defendants have been convicted for their participation in the interstate dogfighting ring. The ring was originally uncovered through an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation.
Five of the defendants have already been sentenced, receiving the following for their dogfighting convictions:
- Eric “EZ” Williams, Baton Rouge, Louisiana: 60 months’ imprisonment
- Corey Brown, Baton Rouge, Louisiana: 50 months’ imprisonment
- Clay Turner, Loranger, Louisiana: 36 months’ imprisonment
- Dangelo Dontae Cornish, Greensburg, Louisiana: 16 months’ imprisonment
- Aquintas Kantrell Singleton, Baton Rouge, Louisiana: 12 months and one day’s imprisonment
A sixth, David Guidry III, of Independence, Louisiana, is scheduled to be sentenced on September 6, 2023.
“Dog fighting is a crime that cruelly forces animals into a cycle of violence and death for personal gratification or profit,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We are committed to aggressively pursuing and prosecuting anyone who engages in such blood sport.”
“No one has the right to torture any creature on this earth,” said Douglas A. Williams, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in New Orleans. “The FBI thanks its partners in this case for their steadfast work to hold Mr. Atkins accountable. The FBI is dedicated to protecting the American people, and in this case, victims who could not defend themselves against abject cruelty.”
“Individuals who support and facilitate the cold-hearted practice of dog fighting will face serious consequences for their actions,” said Dax Roberson, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General. “We appreciate the commitment of our law enforcement partners to investigate and assist in the criminal prosecution of those who support the appalling abuse of these animals.”
According to court documents, in 2017, Atkins conspired with others to keep, breed, train and fight pitbull dogs. On telephone calls obtained via court-authorized wiretaps, Atkins and his co-conspirators discussed many facets of their plans. They discussed preparation (“When I get back, I’m going to . . . look at her [i.e., put her in a practice fight] one more time and then I’m going to match her.”) and the kinds of dogs they wanted to acquire (“We need one of them bitches that eats the face off.”). Other recorded conversations addressed using “rape boxes” to restrain female dogs for breeding, drowning unsellable puppies, performances by prized dogs that fought even after suffering fatal injuries, and bets of thousands of dollars on fight results.
Several times, Atkins and his co-conspirators met to gamble on the outcome of dog fights, including at a co-conspirator’s property in Independence, Louisiana. When dogs suffered injuries during training or fights, Atkins and his co-conspirators performed do-it-yourself veterinary care to avoid the attention that professional veterinary care might bring.
The conspirators maintained several properties in furtherance of their dogfighting operation. In August and October 2017, agents from the FBI, the U.S. Marshals Service and other federal and local law enforcement partners executed search warrants at seven properties. The agents found pitbull dogs and dogfighting paraphernalia at each. In total, 89 pitbulls – including puppies – were seized and received appropriate medical care for their injuries and medical issues. Many of these dogs were rehabilitated and adopted.
At Atkins’s property, agents found and seized fourteen pitbull dogs and puppies, many of which bore scars and wounds consistent with dogfighting. They also found dogfighting paraphernalia, including veterinary medications and supplements, dog collars, heavy chains, a training device known as a “flirt pole,” dogfighting magazines and dog pedigree records bearing Aktins’s name and the names of others. Atkins’s documents showed that he had been breeding, selling and purchasing dogfighting dogs since 2002.
Atkins pleaded guilty to two counts: (1) conspiring to violate the Animal Welfare Act to sponsor and exhibit animals in an animal fighting venture and to possess and transport animals for purposes of participation in an animal fighting venture; and (2) violating the Animal Welfare Act by possessing an animal in an animal fighting venture. Atkins faces a maximum penalty of ten years in prison and a $500,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Trial Attorney Matthew D. Evans of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorneys Lyman E. Thornton III and Jeremy Johnson of the United States Attorney’s Office for the Middle District of Louisiana are prosecuting the case. The case was investigated by the FBI and the U.S. Department of Agriculture.
Jerry L. Jensen Appointed Acting U.S. Trustee for Arkansas, Nebraska, and MissouriRead the Press Release
Jerry L. Jensen has been appointed by Attorney General Merrick B. Garland as the Acting U.S. Trustee for Arkansas, Nebraska, and Missouri (Region 13) effective Aug. 1, the Executive Office for U.S. Trustees announced today. Jensen replaces Daniel J. Casamatta, who is retiring after 35 years of dedicated service to the department, including the last eight years as the Acting U.S. Trustee in Region 13. Under 28 U.S.C. § 585(a), the Attorney General may fill U.S. Trustee vacancies by appointing an Acting U.S. Trustee.
Jensen joined the U.S. Trustee Program (USTP) in 1989 as a trial attorney in the Omaha office and was appointed as the Assistant U.S. Trustee there in 2019. He has served important roles both regionally and nationally, including as the Region 13 Appellate Coordinator for many years and as a member of four internal peer review teams charged with assessing field office compliance with USTP standards, policies, and expected levels of performance. He also is active within the District of Nebraska, including representing the USTP on the district’s interagency Bankruptcy Fraud Working Group and the Nebraska Bankruptcy Court Practice Committee and serving as a frequent lecturer at local and regional professional programs. Jensen received his Juris Doctor from Creighton University School of Law and his Master of Laws in agricultural law from the University of Arkansas School of Law.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 90 field office locations. Region 13 has offices in Little Rock, Arkansas; Kansas City and St. Louis, Missouri; and Omaha, Nebraska.
Justice Department Challenges Racially Discriminatory Provisions of New Mississippi Law Targeting Hinds CountyRead the Press Release
The Justice Department filed a complaint today challenging portions of Mississippi House Bill 1020 (H.B. 1020), which mandates the appointment of special judges and prosecutors by Mississippi state officials in majority-Black Hinds County, which includes the City of Jackson. The complaint alleges that these provisions discriminate on the basis of race in violation of the U.S. Constitution by shifting authority over the county’s criminal justice system away from democratically-elected judges and prosecutors elected by Black voters.
“Mississippi state lawmakers have adopted a crude scheme that singles out and discriminates against Black residents in the City of Jackson and Hinds County,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our complaint alleges that Mississippi has violated the U.S. Constitution by creating a new, two-tiered system of justice – which erodes the authority of Black elected local officials and creates a new system to be led by judges and prosecutors hand-picked and appointed by state officials. This thinly-veiled state takeover is intended to strip power, voice and resources away from Hinds County’s predominantly-Black electorate, singling out the majority Black Hinds County for adverse treatment imposed on no other voters in the State of Mississippi. The Civil Rights Division of the Department of Justice remains committed to identifying and challenging all acts of discrimination targeting Black communities.”
“One of the hallmarks of justice and the United States Constitution is equal protection under the law,” said U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi. “We want to ensure that the citizens of Hinds County and Jackson, Mississippi, are treated equally in the support and operation of their criminal justice system.”
Hinds County, which has a total Black population of 70%, includes the City of Jackson, which has a total Black population of over 79.5%. Voters elect Black officials to most positions in the city and county, including those affecting the criminal justice system. Hinds County voters elected four Black circuit court judges to its four elected circuit judge positions in 2018.
With H.B. 1020, the state legislature singles out and radically changes Hinds County’s democratic approach to governance over its criminal justice system. The bill calls for the creation of a new court system for part of Jackson, called the Capitol Complex Improvement District Court, which will be served by a new state-appointed judge and new state-appointed prosecutors. H.B. 1020 also mandates appointment of four new special circuit judges by the Chief Justice of the Mississippi Supreme Court to serve alongside those judges elected to the Hinds County Circuit Court. The United States’ complaint contends that these provisions were adopted with a discriminatory purpose in violation of the Fourteenth Amendment’s Equal Protection Clause.
The complaint alleges that the state law discriminates against Hinds County’s Black residents by adding new officials who are not democratically accountable to local voters, including new state-appointed special circuit judges and a new justice system led by a judge and prosecutors who are appointed by state officials. These new appointments, which significantly change the form of government in Hinds County and the dynamic of power over the local criminal justice system, are intended to primarily benefit white residents in Jackson and to treat Black voters in Hinds County differently than white voters everywhere else in the state. The complaint alleges that H.B. 1020 was enacted on the heels of decades of failure by the Mississippi Legislature to provide Hinds County’s criminal justice system with the resources, funding, and personnel that it needs, making it harder for local police, prosecutors, judges, and other officials to do their work effectively and efficiently. The complaint asks the court to prohibit the appointment of the new judges and prosecutors by states officials and provide other necessary relief.
Complaints about discriminatory practices may be reported to the Civil Rights Division through its internet reporting portal at www.civilrights.justice.gov or by calling (800) 253-3931.
Additional information about the Civil Rights Division’s work to uphold and protect the voting rights of all Americans is available on the Justice Department’s website at www.justice.gov/crt/voting-section.
Former Georgia Used Motor Vehicle Dealer Pleads Guilty to Conspiracy to Commit Securities Fraud in Connection with Odometer Tampering SchemeRead the Press Release
A Georgia man pleaded guilty today in the U.S. District Court for the Northern District of Georgia for his role in falsifying vehicle titles as part of a scheme to roll back odometers on used motor vehicles.
According to court documents between 2011 and 2013, Andrew O. Elphic, 52, of Monroe, engaged in a scheme to sell high-mileage and used vehicles with false and low-mileage readings entered on the vehicles’ odometers and titles. Elphic purchased high-mileage vehicles from auctions outside the State of Georgia, altered or arranged to alter the vehicles’ odometers to reflect false and lower mileage readings, and then altered the vehicles’ titles to reflect false lower mileages for the vehicles. He then submitted the altered titles to co-conspirators employed at a Georgia Motor Vehicle Division office and made cash payments to the employees in order to obtain new motor vehicle titles reflecting the false and lower mileages. Elphic then used the fraudulent titles with the lower odometer readings to sell the vehicles at an automobile auction in Atlanta. By deceiving purchasers into believing the vehicles had fewer miles, Elphic was able to sell the vehicles at inflated prices — thereby causing unsuspecting buyers to pay more for vehicles than they would have paid had the buyers known the true mileages.
Elphic’s scheme misrepresented the mileage to the Georgia Motor Vehicle Division on at least 305 vehicles, resulting in consumer losses of more than $550,000. Consumers who ultimately purchased the vehicles at dealerships did not know of the mileage discrepancies and, as a result, paid inflated sales prices.
“The Department of Justice will continue to work with law enforcement partners to prosecute unscrupulous individuals who deceive consumers purchasing used motor vehicles,” said Principal Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Misrepresenting used car mileages defrauds buyers and conceals significant information about the safety and reliability of these vehicles.”
“Our top priority is safety, and odometer fraud schemes not only scam consumers, but keep unsafe vehicles on our roads,” said Acting Administrator Ann Carlson of the National Highway Traffic Safety Administration (NHTSA). “By actively prosecuting these crimes, we send a strong message that odometer scams, which affect the livelihood of Americans across this country, will not go unpunished. I thank our partners at the Department of Justice for working with us to deter odometer fraud.”
Elphic pleaded guilty to one count of conspiracy to commit securities fraud. He is scheduled to be sentenced on Oct. 24, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The NHTSA Office of Odometer Fraud Investigation investigated the case, with assistance from the Georgia Department of Revenue.
Senior Litigation Counsel Linda I. Marks and Trial Attorney Kathryn Schmidt of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Thomas J. Krepp for the Northern District of Georgia prosecuted the case.
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually. Individuals with information relating to odometer tampering should call NHTSA’s odometer fraud hotline at (800) 424-9393 or (202) 366-4761.
More information on odometer fraud is available on the NHTSA website at www.nhtsa.gov/odometer-fraud, and tips on detecting and avoiding odometer fraud are available at www.nhtsa.gov/sites/nhtsa.gov/files/811284.pdf.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Georgia, visit www.justice.gov/usao-ndga.
Federal Court finds Miami-Based Tax Return Preparer in Contempt and Orders Disgorgement of Ill-gotten Fees as a SanctionRead the Press Release
On July 11, 2023, a federal court in the Southern District of Florida found Rose M. Chazulle in contempt of court for violating a permanent injunction prohibiting her from preparing or filing federal tax returns or other tax-related documents and forms for any person or entity. The court ordered that she disgorge to the United States more than $48,000 in ill-gotten fees, which the parties agreed was a reasonable approximation of the fees that she earned for tax returns prepared in violation of the injunction.
In 2016, the court permanently enjoined Ms. Chazulle from preparing tax returns for others. Despite the court’s orders prohibiting her from preparing or assisting in the preparation of tax returns for others, Ms. Chazulle stipulated that she continued her return preparation activities preparing returns using the preparer tax identification numbers assigned to her daughter and brother-in-law and using the electronic filing identification numbers associated with their businesses. Ms. Chazulle further stipulated that she received at least $48,100 in fees for preparing returns in violation of the court’s injunction. Based on Ms. Chazulle’s stipulations, the court found her in contempt for violating the permanent injunction and ordered as a civil contempt sanction that she disgorge the fees she earned in violation of the injunction.
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.
Justice Department Announces Settlement with J.R. Simplot to Improve Hazardous Waste Management and Reduce Emissions at Idaho FacilityRead the Press Release
WASHINGTON – The Justice Department and the Environmental Protection Agency (EPA) today announced a settlement with J.R. Simplot Company involving Simplot’s Don Plant manufacturing facility located near Pocatello, Idaho.
The settlement resolves allegations primarily under the Resource Conservation and Recovery Act (RCRA) at the facility, including that Simplot failed to properly identify and manage certain waste streams as hazardous wastes. The settlement requires Simplot to implement process modifications designed to enable greater recovery and reuse of phosphate, a valuable resource. The settlement also requires Simplot to ensure that financial resources will be available when the time comes for environmentally sound closure of the facility. Simplot will also pay a civil penalty of $1.5 million.
“After our 2020 settlement with Simplot’s phosphoric acid and fertilizer plant in Wyoming, we are pleased to reach this settlement with Simplot’s other major phosphoric acid and fertilizer operation at the Don Plant in Pocatello, Idaho,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This proposed consent decree will comprehensively address the waste management, air emissions and reporting issues EPA identified with respect to the Don Plant’s operations.”
“This is an important settlement which reduces the environmental impacts from one of the leading fertilizer manufacturers,” said Acting Assistant Administrator Larry Starfield of the EPA Office of Enforcement and Compliance Assurance. “This settlement advances EPA’s goals by creating environmentally beneficial waste management practices and ensures that the U.S. taxpayer will not be responsible for future costs associated with closure of this facility. Additionally, this settlement ensures that any future expansion of Simplot’s operations will be conducted according to strict requirements to minimize impacts to surrounding communities, including the Fort Hall Indian Reservation.”
Simplot’s Don Plant facility manufactures phosphate products for agriculture and industry, including phosphoric acid and phosphate fertilizer, through processes that generate large quantities of acidic wastewater and a solid material called phosphogypsum. The phosphogypsum is deposited in a large pile known as a gypstack, and acidic wastewater is discharged to the gypstack. The gypstack, which has a capacity to hold several billion gallons of acidic wastewater, was fully lined in 2017 in accordance with a previous consent orders Simplot entered into with the State of Idaho and the United States.
The settlement also resolves alleged violations of the Clean Air Act (CAA) that relate to fluoride emissions from the facility, and of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the Emergency Planning and Community Right-to-Know Act (EPCRA) that relate to reporting and notification requirements for hazardous substances and toxic chemicals.
Under the settlement, Simplot agrees to implement specific waste management measures it has valued at nearly $150 million. Significantly, these measures include extensive new efforts to recover and reuse the phosphate content within these wastes and avoid their disposal in the gypstack. Simplot will implement requirements that ensure gypstack stability and containment that will protect the environment even should climate change result in more severe weather events. The settlement also includes a detailed plan setting the terms for the future closure and long-term care of the gypstack. The settlement requires Simplot to immediately secure and maintain approximately $108 million in dedicated financing to ensure that funding will be available when the facility is eventually closed.
Simplot also agrees to cease operation of the facility’s cooling towers no later than June 27, 2026, and replace them with one or more newly constructed cooling ponds, which will significantly reduce fluoride emissions to the air. Additionally, Simplot agrees to submit revised Toxic Release Inventory forms for the years 2004-2013 that include estimates of certain metal compounds manufactured, processed or otherwise used at the facility.
In addition to paying the $1.5 million civil penalty, Simplot is providing $200,000 in funding for environmental mitigation work that will be administered by the Idaho Department of Environmental Quality in conjunction with the City of Pocatello and the Shoshone-Bannock Tribes. The mitigation work will address habitat degradation on the Portneuf River that has resulted in part from excess phosphorus releases, especially from the facility’s formerly unlined gypstack.
“This settlement will bring important benefits to Idaho and the communities that have been affected by the Don Plant’s operations,” said U.S. Attorney Josh Hurwit for the District of Idaho. “We are grateful that our state partner, the Idaho Department of Environmental Quality, helped formulate and will oversee work that Simplot will fund to mitigate the impacts of its phosphate operations on water quality and the environment along the Portneuf River, working in cooperation with both the Shoshone-Bannock Tribes and the City of Pocatello.”
EPA previously required through judicial and administrative settlements at 14 phosphate fertilizer facilities across the U.S. extensive injunctive relief, requiring the companies to establish financial assurance and bring their operations into compliance with RCRA.
A consent decree formalizing the settlement was lodged today in the U.S. District Court for Idaho and is subject to a 30-day public comment period and approval by the federal court. For a copy of the consent decree, visit www.justice.gov/enrd/consent-decrees.
Readout of Deputy Attorney General Lisa O. Monaco’s Trip to Tokyo for G7 and ASEAN Justice Ministers MeetingsRead the Press Release
Deputy Attorney General (Deputy AG) Lisa O. Monaco traveled to Tokyo July 6-8 to highlight the importance of international partnerships and support for the rule of law at a Group of Seven (G7) Justice Ministers’ Meeting and a G7 Interface Meeting with Justice Ministers and Attorneys General from the Association of Southeast Asian Nations (ASEAN).
In remarks at the ASEAN Interface on July 7, the Deputy AG emphasized the critical importance of strong international partnerships to combating intensifying global threats from cybercrime and transnational organized crime, particularly narcotics trafficking. She noted how the Justice Department’s prosecutors and investigators are working with global partners to disrupt the criminal ecosystem that allows increasingly brazen cyber criminals and malicious nation-state actors to flourish. She also encouraged her counterparts to join the Justice Department’s campaign against drug cartels that fuel violence around the world, warning that the United States is facing a deadly threat from fentanyl and other illicit synthetic drugs. She said:
“To my colleagues — I urge you to recognize that while you may not see this deadly killer now — you will. Fentanyl trafficking is a serious threat to all of us and is an area ripe for future cooperation.”
In the meeting of G7 Justice Ministers, the Deputy AG reiterated her warning about fentanyl and acknowledged the steadfast commitment of G7 nations to support Ukraine and resolve to hold Russia accountable for the war crimes and atrocities it is perpetrating in its war of aggression in Ukraine. She joined G7 Justice Ministers in announcing new efforts to help Ukraine strengthen the rule of law and fight corruption, including through a new G7 Anti-Corruption Task Force for Ukraine, which the Justice Department will support as part of its continued response to Russia’s unprovoked and brutal war in Ukraine.
Pointing to the Disruptive Technology Strike Force she launched earlier this year, the Deputy AG also encouraged her G7 counterparts to work together to deny repressive regimes the technology they abuse and exploit to monitor, harass, and intimidate, warning that:
“Our adversaries are not content with the status quo — they are increasingly creative, brazen, and malicious in their efforts to weaken democracies, to sow discord, and to spread corruption across the globe. Only by defending the rule of law, protecting civil liberties, and holding fast to the values that underpin our countries can we defeat these autocratic regimes — and we can and must do these things together.”
You can read more here about the commitments made by G7 Justice Ministers to support Ukraine, enhance cooperation among the G7 nations to promote the rule of law, and connect the G7 and Indo-Pacific in the fields of law and justice.
While in Tokyo, the Deputy AG held a number of bilateral meetings, including with Justice Ministers and other counterparts from the United Kingdom, the Philippines, France, Italy, Germany, Japan, and Canada, as well as with the Executive Director of the United Nations Office on Drugs and Crime (UNODC). In all of these discussions, the Deputy AG emphasized the importance of continuing to invest in international partnerships, which are key to dismantling deadly narcotics trafficking networks, disrupting cybercrime and threats like ransomware, and preventing the misuse of critical technologies by repressive regimes to undermine democracies.
Joined by U.S. Ambassador to Japan, Rahm Emanuel, the Deputy AG met with the Japanese Minister of Justice, Ken Saitō, to thank him for his leadership of the G7 Justice Ministerial and for his hospitality in Tokyo. She met separately with Deputy Commissioner General of the Japanese National Police, Yoshimi Ogata, and underscored the Justice Department’s deep appreciation for the strong collaboration with Japanese law enforcement and justice partners in combating shared global threats.
Before leaving Tokyo, the Deputy AG visited the American Embassy for a briefing with U.S. officials on their work in-country and to thank them for their dedicated public service.
Justice Department Statement on the European Union’s Adoption of Trans-Atlantic Data Privacy Framework to Restore Trust and Stability to Transatlantic Data Flows, Reflecting the Strength of EU-U.S. RelationshipRead the Press Release
Note: To obtain a copy of the AG designation and memo click Attorney General Designation Pursuant to Section 3(f) of Executive Order 14086 of the EU/EEA and Supporting Memorandum for the Attorney General’s designation of the EU/EEA. Other related information is available at www.justice.gov/opcl/executive-order-14086.
Following the European Commission’s adoption of its adequacy decision for the EU-U.S. Data Privacy Framework, the Justice Department made the following statement:
The Justice Department welcomes the European Commission’s adoption on July 10 of an adequacy decision for the United States as part of the EU-U.S. Data Privacy Framework, to which President Biden and European Commission President von der Leyen agreed in March 2022. The adequacy decision provides a basis in the law of the European Union for transfers of personal data from EU countries to the United States for commercial purposes. This flow of data underpins the $7 trillion-dollar U.S.-EU economic relationship and provides vital benefits to citizens and businesses on both sides of the Atlantic, enabling businesses of all sizes to compete in each other’s markets.
The Commission’s adoption of the adequacy decision also brings into effect the Attorney General’s designation of the EU and the three additional countries making up the European Economic Area (EEA) as “qualifying states” for purposes of implementing the redress mechanism established in Executive Order 14086. A country or a regional economic integration organization may be designated a “qualifying state” by the Attorney General if he determines, in consultation with the Secretary of State, the Secretary of Commerce, and the Director of National Intelligence, that it meets the requirements set forth in the executive order. That determination was made on June 30 for the EU/EEA, contingent upon the Commission’s adoption of an adequacy decision.
The Attorney General’s designation and the supporting memorandum for the designation are available at www.justice.gov/opcl/executive-order-14086. As a result of the designation and the adoption of the adequacy decision, EU/EEA individuals may now submit complaints to obtain redress for alleged violations of law in connection with U.S. signals intelligence activities affecting their personal data transferred to the United States.
The Justice Department looks forward to working with our partners at the European Commission, together with representatives of European data protection authorities, on continuing implementation of these data privacy safeguards.
Justice Department Seeks to Shut Down Missouri Tax Return PreparerRead the Press Release
The United States filed a complaint in the Eastern District of Missouri seeking to bar a St. Louis-based tax preparer from assisting in preparing federal income tax returns for others.
The government’s complaint alleges that, since at least 2017, Diane Shontae Williams, both individually and through her business, Dreams & Memories Professional Planning Services, prepared tax returns for customers that falsely decrease the amount of tax that customers owe or falsely increase her customers’ refunds. According to the complaint, Williams concocted fictitious businesses; falsified expenses to reduce both real and fictitious self‑employment income; claimed bogus residential energy credits; fabricated household employee income to claim higher tax credits for customers; and invented false itemized deductions, including unreimbursed business expenses and charitable donations.
The complaint further alleges that Williams does not identify herself as a paid preparer on her customers’ returns, which adds to the government’s difficulty in identifying and detecting her illicit tax preparation activities. The IRS specifically cautions taxpayers to avoid “ghost” preparers, who will prepare a tax return but refuse to sign or include their IRS Preparer Tax Identification Number (PTIN) as required by law.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS 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.
Taxpayers seeking assistance can access the IRS’s free directory of federal tax preparers. The IRS also has programs offering free basic return preparation for qualifying seniors and individuals with low to moderate income. 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 Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Former Hells Angels Outlaw Motorcycle Gang Member Sentenced to 80 Months in Federal Prison for Drug TraffickingRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Nicholas Alexander Aguon, age 34, from Stockton, California, was sentenced to 80 months imprisonment by the District Court of Guam. Aguon was convicted of Conspiracy to Distribute Fifty or More Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 846 and 841(a)(1). The Court also ordered five years of supervised release and a $100 mandatory special assessment fee. Defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
Aguon traveled to Guam from Stockton, California, in 2017. He began distributing methamphetamine from two Tumon hotel rooms to numerous persons. The investigation also revealed that Aguon received large sums of money in his personal accounts and returned the proceeds back to his California supplier using money remitter services. The drug transactions were facilitated using cell phones and Facebook messenger. Aguon sold over a pound of methamphetamine before the distribution was detected by law enforcement.
“The sentence in this case sends a message of deterrence to those seeking to distribute drugs in Guam,” stated United States Attorney Anderson. “Combatting drug crime remains an important priority for our law enforcement partners. I applaud their efforts.”
“HSI is committed to investigating drug traffickers who trade in methamphetamine,” said John F. Tobon, Special Agent in Charge, HSI Honolulu. “Criminals like Aguon who distribute this poison will be investigated and prosecuted to stop the flow of dangerous drug into our communities.”
This investigation was conducted by the Homeland Security Investigations and prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
U.S. Army Financial Counselor Charged with Defrauding Gold Star FamiliesRead the Press Release
A Monmouth County, New Jersey, financial counselor with the U.S. Army and major in the U.S. Army Reserves who allegedly defrauded two dozen Gold Star families has been indicted.
Caz Craffy, aka Carz Craffey, 41, of Colts Neck, New Jersey, is charged by indictment with six counts of wire fraud and one count each of securities fraud, making false statements in a loan application, committing acts furthering a personal financial interest, and making false statements to a federal agency. Craffy is expected to make his initial appearance today before U.S. Magistrate Judge Tonianne J. Bongiovanni at the Trenton Federal Courthouse.
“Stealing from Gold Star families whose loved ones made the ultimate sacrifice in service to our nation is a shameful crime,” said Attorney General Merrick B. Garland. “As alleged in the indictment, the defendant in this case used his position as an Army financial counselor to defraud Gold Star families, steal their money, and enrich himself. Predatory conduct that targets the families of fallen American service members will be met with the full force of the Justice Department.”
“The families of our fallen service members have laid the dearest sacrifice on the altar of freedom,” said U.S. Attorney Phillip R. Sellinger for the District of New Jersey. “These Gold Star families deserve our utmost respect and compassion, as well as some small measure of financial security from a grateful nation. They must be off-limits for fraudsters. But, as the indictment alleges, this defendant took advantage of his role as an Army financial counselor to prey upon these families, using lies and deception to steer their investments in a way that would make him money. There is no room for those who seek to rip off families of fallen servicemembers to make a buck. We will use every means at our disposal to ensure that those who defraud military families are held accountable.”
“Those who prey on the family members of fallen soldiers, will be sought out and held accountable,” said Special Agent in Charge Joel Kirch of the Department of the Army Criminal Investigation Division, Northeast Field Office. “The hard work, long hours, and dedication of our partners within the Task Force, from the U.S. Attorney’s Office, Defense Criminal Investigative Service, FBI, Homeland Security Investigations, and our own investigative analyst, resulted in this investigation’s swift resolution.”
“The families of service members who lost their lives while serving their country deserve to be treated with compassion, dignity and respect by individuals entrusted to assist them in obtaining survivor benefits,” said Principal Deputy Director James R. Ives of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DoD Office of Inspector General. “Today’s announcement reflects DCIS and our law enforcement partners’ steadfast commitment to holding accountable those who use their official positions to take advantage of grieving military families.”
“Gold Star families are given a title no one would choose because it means they’ve paid the ultimate sacrifice for this country,” said Special in Charge James E. Dennehy of the Newark FBI. “The soldier, sailor, marine or airman they loved died during a time of conflict – defending this nation. They are given money and assistance to help ease the burden that comes with losing their loved one, however no amount of money can replace what they’ve lost. We allege Craffy took advantage of his position and defrauded families already going through a tremendous amount of suffering.”
“Craffy disgraced the position he was entrusted in to care for our nation’s military families when he allegedly took advantage of them during a vulnerable time of grief,” said Special Agent in Charge Ricky J. Patel Homeland Security Investigations Newark. “No family, especially our Gold Star families, should have to face further heartache after a loved one’s death by having their financial security ripped out from under them by fraudsters.”
According to documents filed in this case and statements made in court:
When a member of the Armed Services dies during active duty, his or her surviving beneficiary, now a member of a Gold Star family, is entitled to a $100,000 death gratuity and the soldier’s life insurance of up to $400,000. These payments are disbursed to the beneficiary in a matter of weeks or months following the servicemember’s death. To assist the beneficiaries in this time of need, the military provides a number of services to the servicemember’s family, including the assistance of a financial counselor.
From November 2017 to January 2023, Craffy was a civilian employee of the U.S. Army, working as a financial counselor with the Casualty Assistance Office. He was also a major in the U.S. Army Reserves, where he has been enlisted since 2003. Craffy was responsible for providing general financial education to the surviving beneficiaries. He was prohibited from offering any personal opinions regarding the surviving beneficiary’s benefits decisions. Craffy was not permitted to participate personally in any government matter in which he had an outside financial interest. However, without telling the Army, Craffy simultaneously maintained outside employment with two separate financial investment firms.
Craffy used his position as an Army financial counselor to identify and target Gold Star families and other military families. He encouraged the Gold Star families to invest their survivor benefits in investment accounts that he managed in his outside, private employment. Based upon Craffy’s false representations and omissions, the vast majority of the Gold Star families mistakenly believed that Craffy’s management of their money was done on behalf of and with the Army’s authorization.
From May 2018 to November 2022, Craffy obtained more than $9.9 million from Gold Star families to invest in accounts managed by Craffy in his private capacity. Once in control of this money, Craffy repeatedly executed trades, often without the family’s authorization. These unauthorized trades earned Craffy high commissions. During the timeframe of the alleged scheme, the Gold Star family accounts had lost more than $3.4 million, while Craffy personally earned more than $1.4 million in commissions, drawn from the family accounts.
The wire fraud and securities fraud charges are each punishable by a maximum of 20 years in prison. The charge of submitting a false statement on a loan application is punishable by a maximum of two years in prison. The charges of acts affecting a personal interest and false statements to a federal agent are each punishable by five years in prison. All counts but the securities fraud count are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. The securities fraud count is punishable by a maximum fine of either $5 million or twice the gain or loss from the offense, whichever is greatest.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Craffy today based on the same and additional conduct. Craffy has been permanently prohibited from association with any member of the Financial Industry Regulatory Authority Inc. (FINRA).
U.S. Attorney Sellinger credited special agents of the Department of the Army Criminal Investigation Division, under the direction of Special Agent in Charge Kirch; special agents of DCIS, under the direction of Principal Deputy Director Ives; special agents of the FBI, under the direction of Special Agent in Charge Dennehy; and special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Patel with the investigation leading to the indictment. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Gurbir S. Grewal, Director, Division of Enforcement, and FINRA, under the direction of Acting Head of Enforcement Christopher J. Kelly.
The government is represented by Assistant U.S. Attorneys Martha K. Nye of the Criminal Division in Trenton, and Carolyn Silane of the Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Craffy IndictmentNational Grid Agrees to Pay $5.38 Million for Natural Resource DamagesRead the Press Release
National Grid has agreed to pay $5.38 million to federal and state natural resource trustees to resolve claims for natural resource damages from releases of hazardous chemicals connected to the former Gloucester Gas Light Company located in Gloucester, Massachusetts.
Between 1854 and 1952, the former Gloucester Gas Light Company operated a manufactured gas plant along the Gloucester waterfront. The plant used industrial processes to produce manufactured gas from coal and oil. Manufactured gas plants, which were common before the development of natural gas pipelines, often yielded by-products such as tars, sludges, and oils. Production at the gas plant ended in the early 1950s, and ownership changed to the North Shore Gas Company, a predecessor of the current owner, National Grid. Hazardous chemicals released by the former manufactured gas plant contaminated soils and groundwater, as well as sediment in the adjacent Gloucester Harbor. Those contaminants resulted in injuries to natural resources in Gloucester Harbor.
“This settlement will provide funding for federal and state agencies to undertake critical habitat restoration work in the coastal areas in the vicinity of the former impacted by Gloucester Gas Light Company’s plant,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.
“Coastal wetlands provide vital habitat for many species of fish and wildlife as well as protect neighboring communities from storm surges and rising sea levels from climate change,” said Acting Regional Director Kyla Hastie of the Fish and Wildlife Service Northeast Region. “The settlement will allow the trustees to fund restoration projects in Coastal Massachusetts to make communities safer and improve wildlife habitat for impacted species.”
“This settlement is an important step toward addressing years of pollution in Gloucester Harbor that injured the community's natural resources,” said Director for Habitat Conservation for Fisheries Carrie Selberg Robinson of the National Oceanic and Atmospheric Administration (NOAA). “We look forward to working with the other trustees to restore habitat that will support Gloucester well into the future.”
“Gloucester Harbor provides vital maritime, recreational, and ecological services to the public. This settlement will ensure that the public is compensated for the natural resource injuries that resulted from the decades-long release of hazardous substances into the Harbor,” said Massachusetts Attorney General Andrea Joy Campbell. “We thank our state and federal partners for working with us to achieve this important outcome.”
“This settlement will meaningfully address decades of environmental harm and restore wetlands and other aquatic resources. The Commonwealth and its trustee partners will ensure that stakeholders and officials in Gloucester will be active participants in the process to utilize these funds for restorative environmental projects,” said Secretary Rebecca Tepper of the Massachusetts Executive Office of Energy and Environmental Affairs. “We appreciate the work of the Department of Justice and Attorney General Campbell in bringing about this resolution for the Gloucester Harbor.”
Under the Comprehensive Environmental Response, Compensation, and Liability Act, parties that have disposed of hazardous substances at a site are liable for damages, injury to, destruction of, or loss of natural resources. The natural resource trustees for the site are the U.S. Department of the Interior, through the U.S. Fish and Wildlife Service, the NOAA, and the Secretary of the Massachusetts Executive Office of Energy and Environmental Affairs. Massachusetts state law affords the Commonwealth a similar right to recover damages for injuries to natural resources. The trustees determined that the hazardous substances released from the former Gloucester Gas Light Company’s manufactured gas plant contaminated waters and sediments in Gloucester Harbor, resulting in injury to these natural resources that serve as habitats for fish and wildlife species. National Grid is remediating those contaminants under Massachusetts state law.
In settlement of the trustees’ natural resource damages claims, National Grid has agreed to pay $80,000 to reimburse federal and state trustees for damage assessment costs and $5.3 million to compensate the public for natural resource injuries to Gloucester Harbor, which the trustees, working with the public, will use to implement one or more natural resource restoration projects. The defendant previously paid about $475,000 to reimburse federal and state trustees for prior damage assessment costs incurred at the site.
The Justice Department is seeking public comments on the settlement for a period of 30 days from publication of a notice of the settlement, which will appear in the Federal Register. View a copy of the settlement here. For more information about the Former Gloucester Gas Light Company case, see www.darrp.noaa.gov/hazardous-waste/former-gloucester-gas-light-company.
Johnston Man Arrested, Federal Firearm Charges Filed in Seizure of Firearm Silencers and Device to Convert an AR-15 to an Automatic WeaponRead the Press Release
PROVIDENCE – Federal charges have been filed against a Johnston man following the seizure of two firearm silencers, one of which was attached to a rifle, and a “lightning link” auto sear (a device used to turn a semi-automatic rifle into an automatic weapon), announced United States Attorney Zachary A. Cunha.
Alessio Dandrea, 27, has been charged by way of a federal criminal complaint with possession of an unregistered firearm silencer and unlicensed importation/transportation of a machine gun from foreign commerce.
According to charging documents, on June 14, 2023, U.S. Customs and Border Protection intercepted a parcel shipped from China addressed to Dandrea that, upon inspection, was found to contain an AR-15 “lightning link” auto sear. The seized lightning is classified as a machine gun by the ATF and is designed to modify the semi-automatic function/capability of an AR-15, rendering it capable of firing as an automatic weapon. The possession or transfer of an unregistered drop-in auto sear is prohibited by the National Firearms Act.
A court-authorized search of Dandrea’s residence on Thursday by agents and officers from Homeland Security Investigations, ATF, and the Johnston Police Department resulted in the seizure of six firearms and two firearm silencers, one of which was attached to a rifle. An investigation into Dandrea revealed that the two silencers were not registered to him, rendering their possession illegal under federal law.
Dandrea is scheduled to make an initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan today at 2:00 pm.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney G. Michael Seaman.
The matter was investigated by Homeland Security Investigations, U.S Postal Inspection Service, Bureau of Alcohol Tobacco Firearms and Explosives, with assistance from the Johnston, Warwick, Providence, Central Falls, and Pawtucket Police Departments.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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dandrea_criminal_complaint.pdfForeign National Indicted for International Drug TraffickingRead the Press Release
A Mexican national made his initial appearance in the District of Columbia today to face international cocaine and marijuana trafficking charges.
According to court documents, between 2000 and 2010, Eleazar Medina Rojas, aka Chelelo, 51, was a high-ranking member of the Zetas, an international drug trafficking organization allied with the Gulf Cartel. Together, the Zetas and the Gulf Cartel, known collectively as “The Company,” was a violent, transnational drug trafficking organization based in Mexico that was engaged in the manufacture, distribution, and importation of ton quantities of cocaine and marijuana from Mexico, Colombia, Guatemala, Panama, and elsewhere into the United States. Medina Rojas was also the “plaza boss” for the city of Monterrey, Nuevo Leon, Mexico, controlling the Zeta’s drug trafficking activities in that area.
In May 2013, a grand jury in the District of Columbia returned a fourth superseding indictment against Medina Rojas. In December 2018, Mexican authorities arrested Medina Rojas pursuant to a provisional arrest requested by the United States. Medina Rojas remained detained in Mexico pending his extradition. He was extradited from Mexico to the United States on July 6.
Medina Rojas is charged with one count of conspiracy to manufacture and distribute five kilograms or more of cocaine and over 1,000 kilograms of marijuana intending and knowing that those substances would be imported into the United States. If convicted, he faces a mandatory minimum sentence of 10 years in prison and a maximum penalty of life imprisonment.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and DEA Administrator Anne Milgram made the announcement.
The DEA Houston Division is investigating the case with assistance from the DEA Mexico City Country Office.
Trial Attorneys Kirk Handrich and Janet Turnbull of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Medina Rojas. The Office of Enforcement Operations also provided significant assistance.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Cooperation Between United States and Mexican Law Enforcement Leads to Significant Actions Against Transnational Drug Trafficking OrganizationRead the Press Release
Today, U.S. and Mexican law enforcement announced significant enforcement actions against a prolific transnational drug trafficking organization operating in Nogales, Sonora, along the U.S.-Mexico border.
After extensive bilateral cooperation between the United States and Mexico, Mexico’s Attorney General’s Office, Fiscalía General de la República (FGR) – conducted a significant enforcement operation on June 23, 2023, to dismantle a prolific transnational drug trafficking organization operating in Nogales, Sonora, along the U.S.–Mexico border. The operation resulted in the arrest of five people and the seizure of 120,000 fentanyl pills, 15 pounds of methamphetamine, 17 pounds of heroin, 15 pounds of cocaine, three assault rifles, one 9mm handgun, and a vehicle.
In addition, seven U.S.-based coordinators and operators with alleged ties to the same drug-trafficking organization have been arrested and indicted in the United States. Gerardo Bernal-Mazon, 29, Ashley Bernal, 31, Jessica Yesenia Valenzuela, 32, and Delyanira Lovio, 29, all of Nogales, Arizona, Juan Murillo, 48, of Rio Rico, Arizona, and Lilian Sugey Siegfried, 38, of Tucson, Arizona, were indicted by a federal grand jury on drug trafficking charges on Feb. 2. George Armenta-Vasquez, 45, of Nogales, Sonora, Mexico, was indicted by a federal grand jury on Jan. 25.
“Transnational drug trafficking organizations pose an unprecedented public safety threat to both the United States and Mexico,” said Attorney General Merrick B. Garland. “These coordinated law enforcement actions demonstrate the success our countries can have when we work together to meet that threat.”
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Drug Enforcement Administration (DEA) – Nogales led the investigation in the United States, in concert with the DEA Mexico City Country Office, Homeland Security Investigations (HSI) – Nogales, U.S. Customs and Border Protection’s U.S. Border Patrol, U.S. Customs and Border Protection’s Office of Field Operation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives – Tucson. Support from DEA–Mexico City Country Office and FGR’s Agencia de Investigación Criminal (AIC) was critical in providing coordination between United States and Mexican law enforcement agencies. The U.S. Department of Justice’s Office of International Affairs provided assistance. The U.S. Attorney’s Office, District of Arizona, Tucson, is prosecuting the seven individuals named above.
Justice Department Finds State of South Carolina Unnecessarily Segregates Adults with Mental Illness in Adult Care HomesRead the Press Release
The Justice Department announced today that it has concluded an investigation into whether the State of South Carolina subjects adults with mental illness to unnecessary institutionalization and serious risk of institutionalization in adult care homes, in violation of Title II of the Americans with Disabilities Act (ADA).
The Justice Department determined that there is reasonable cause to believe South Carolina violates the ADA by failing to provide sufficient community-based services to prevent unnecessary institutionalization of adults with mental illness. Instead, the state subsidizes their stay in adult care homes where people have little contact with people without disabilities, often leaving the homes only for medical appointments and group visits to grocery and convenience stores. Critical services that would allow adults with mental illness to live instead in their own homes and communities are not sufficiently available across the state.
“People with disabilities should not be isolated in institutions for years on end when they can and want to live in their own homes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will safeguard the rights of people with disabilities to ensure that they are able to participate fully in community life.”
“A sacred promise of the ADA includes giving people a meaningful choice for where they wish to live, including in their own private home,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “I hope that the violations identified by the Justice Department can be remedied so that these South Carolinians will be able to leave the shadow of institutional living and instead live in and contribute to their communities.”
The Department’s investigation found South Carolina lacks needed community-based mental health services such as assertive community treatment, supported employment, permanent supportive housing, intensive case management, and peer support. These services are provided in certain parts of the state but are not sufficiently available to afford opportunities to avoid or move out of adult care homes and live in the community. As a result, thousands of adults with mental illness are segregated in adult care homes for years.
The Department’s investigation involved extensive review and analysis of documents; interviews of staff and people living in adult care homes, South Carolina state employees, and stakeholders; and visits to adult care homes statewide. Individuals with information relevant to this matter can contact the Department by emailing [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at Civil Rights Division | Rights Of Persons With Disabilities (justice.gov) and www.ada.gov.
South Carolina ADA Findings Report Letter to SC Regarding FindingsColorado Businessman Sentenced to Prison for Employment Tax EvasionRead the Press Release
A Colorado man was sentenced today to 15 months in prison for evading the payment of more than $700,000 in employment taxes he owed to the IRS.
According to court documents and statements made in court, Frank Stevens of Bow Mar, Colorado, co-owned restaurants and an oil production business, which had employees from whose paychecks he withheld income and Social Security and Medicare taxes. Starting in approximately 2002 and continuing for many years, Stevens did not pay over the withheld payroll taxes to the IRS or file the required quarterly employment tax returns for his businesses. After failing to collect from the businesses, the IRS assessed the tax against Stevens personally. To prevent the IRS from collecting through bank levies the taxes he owed, Stevens kept the balances of his personal and business bank accounts low, often leaving them with only $0.01. Stevens transferred, or directed employees to transfer, just enough funds to cover expenses and then moved any remaining money to a bank account not subject to IRS levy. In total, Stevens caused a tax loss of approximately $737,128.
In addition to the term of imprisonment, U.S. District Judge Daniel D. Domenico ordered Stevens to serve three years of supervised release and to pay a $10,000 fine and $1,096,138.14 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Peter Anthony and Julia Rugg of the Tax Division prosecuted the case.
Three Members of Drug Trafficking Organization Plead Guilty to Importing and Distributing NarcoticsRead the Press Release
Two members of a Mexico-based drug trafficking organization (DTO) pleaded guilty today in the District of Columbia to importing and distributing narcotics.
A third member of the DTO pleaded guilty to the same charges on June 16.
According to court documents, from January 2020 through April 2022, Angel Adan Valenzuela, 25, of Rio Rico, Arizona; Benjamin Soto Jr., 47, of Nogales, Arizona; and Refugio Veronica Quintero Moreno, 46, of Rio Rico, Arizona, worked with others to routinely transport narcotics from Mexico through the port of entry in Nogales by car and ship those narcotics across the United States. After importing the narcotics into the United States, Valenzuela and other couriers moved them to a shipping facility in Nogales, prepared the packages for shipment, and had them distributed to cities across the United States.
Soto and Quintero Moreno, who at the time were employed at a commercial shipping company in Nogales, routinely accepted narcotics-laden packages from couriers without requesting identification or payment and mailed the packages fraudulently by using existing business accounts. Valenzuela paid the shipping company employees on behalf of the DTO for their role in shipping controlled substances, including Soto and Quintero Moreno, who received weekly payments in Mexico for their role in facilitating narcotics shipments.
From September 2021 to November 2021, agents identified and intercepted 21 packages sent in this manner, resulting in the seizure of more than 30 kilograms of methamphetamine, 20 kilograms of cocaine, seven kilograms of fentanyl, and four kilograms of heroin.
Valenzuela, Quintero Moreno, and Soto all pleaded guilty to a two-count indictment charging each with conspiring to import five kilograms or more of cocaine, 500 grams or more of methamphetamine, and 400 grams or more of fentanyl, and conspiring to distribute those amounts of those substances and Ritalin. Soto and Quintero Moreno are scheduled to be sentenced Nov. 15 and Valenzuela is scheduled to be sentenced on Nov. 16. Each faces a mandatory minimum of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Special Agent in Charge David G. Nanz of the FBI Springfield Field Office made the announcement.
The FBI Springfield Field Office is investigating the case with substantial assistance from Homeland Security Investigations - Arizona and the FBI Tucson Field Office.
Trial Attorneys Douglas Meisel, Mingda Hang, Kate Naseef, and Samantha Thompson of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
The case is supported by the Organized Crime Drug Enforcement Task Forces (OCDETF).
Readout of Civil Rights Division’s Inaugural Quarterly LGBTQI+ Rights Community Stakeholder MeetingRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and the division’s LGBTQI+ Working Group convened the inaugural quarterly meeting of LGBTQI+ Rights Community Stakeholders at the Justice Department.
Department leadership, including representatives from the Civil Rights Division, FBI, Office of Justice Programs and Office on Violence Against Women heard from attending organizations on an array of topics, including anti-LGBTQI+ violence and hate, legislation targeting the LGBTQI+ community, Title VI and grant funding concerns specific to the LGBTQI+ community and the need to increase intersex awareness. Representatives from other government agencies, including the Departments of Health and Human Services, Education, Energy and Housing and Urban Development were also in attendance.
This week’s meeting reinforces the Justice Department’s commitment to taking an all-of-department approach to protecting LGBTQI+ rights, including by engaging with organizations and stakeholders on issues affecting the LGBTQI+ community. The department’s recent work on LGBTQI+ rights issues includes statements of interest and lawsuits challenging state bans on gender-affirming health care for transgender minors in Oklahoma, Kentucky, Tennessee and Alabama. The department has also prosecuted hate crimes based on LGBTQI+ status, supported organizations serving LGBTQI+ victims and survivors, and educated the public about threats facing the LGBTQI+ community, including by hosting a virtual, nationwide community meeting addressing practical steps for protecting LGBTQI+ communities from hate-motivated attacks and threats of violence. These and other efforts by the department are summarized in a fact sheet released earlier in June in honor of Pride Month.
Lincoln Man Sentenced to 30 Months for Marijuana Charge Involving a ShootingRead the Press Release
United States Attorney Steven Russell announced that Xavier Lloyd Gary, 19, of Lincoln, Nebraska, was sentenced on June 29, 2023 by Senior United States District Court Judge John M. Gerrard to a 30-month term of imprisonment for attempted possession of marijuana with the intent to distribute. After he completes his prison sentence, Gary will serve a two-year term of supervised release. There is no parole in the federal system.
On August 2, 2021, Lincoln police responded to reports of a shooting occurring near the Edgewood Theaters and Target on the south side of Lincoln. Jayden Prentice, Christopher Duncan, and Riley Mills were present when police arrived. Duncan and Prentice had suffered gunshot wounds. First responders resuscitated Duncan using CPR. They were transported to the hospital. Duncan and Prentice each spent a month in the hospital being treated for their wounds, and Duncan had to have one of his legs amputated. The investigation would later reveal that a group of people, including Gary and Buongkhoy Wal, arranged to purchase a half-pound of marijuana from Prentice, Duncan, and Mills. The planned purchase was a ruse for a robbery. Gary’s car was used in the offense and Gary drove to and from the scene. Gary was not one of the persons who discharged a firearm.
Buongkhoy Wal pleaded guilty to discharging a firearm during a drug trafficking offense on March 21, 2023, and he is scheduled for sentencing on July 31, 2023. He faces a prison sentence of at least ten years.
Prentice, Duncan, and Mills each pleaded guilty to offenses involving the possession of controlled substances with the intent to distribute, and possession of firearms in furtherance of a drug trafficking offense. On June 24, 2022, Mills was sentenced to a 92-month term of imprisonment, to be followed by a three-year term of supervised release. Prentice was sentenced on July 6, 2022, to a 72-month term of imprisonment, and a three-year term of supervised release. Duncan is scheduled for sentencing on July 17, 2023.
The investigation was conducted by the Lincoln Police Department and the Federal Bureau of Investigation. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Former Deputy U.S. Marshal Sentenced for Cyberstalking, Perjury, and ObstructionRead the Press Release
A former deputy U.S. Marshal was sentenced today to 10 years and one month in prison for conspiracy to commit cyberstalking, cyberstalking, perjury, and obstruction of justice.
According to court documents and evidence presented at trial, Ian R. Diaz, 45, of Glendora, California, and his then-wife, an unindicted co-conspirator (CC-1), posed as a person with whom Diaz was formerly in a relationship (Jane Doe). In that guise, they sent themselves harassing and threatening electronic communications that contained apparent threats to harm CC-1; solicited and lured men found through Craigslist “personal” advertisements to engage in so-called “rape fantasies” in an attempt to stage a purported sexual assault on CC-1 orchestrated by Jane Doe; and staged one or more hoax sexual assaults and attempted sexual assaults on CC-1. Diaz and CC-1 then reported this conduct to local law enforcement, falsely claiming that Jane Doe posed a genuine and serious threat to Diaz and CC-1. Their actions caused local law enforcement to arrest, charge, and detain Jane Doe in jail for nearly three months for conduct for which Diaz and CC-1 framed her.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Special Agent in Charge Harry A. Lidsky of the Justice Department’s Office of the Inspector General (DOJ-OIG) Cyber Investigations Office, and Special Agent in Charge Zachary Shroyer of the DOJ-OIG Los Angeles Field Office made the announcement.
DOJ-OIG investigated the case.
Senior Litigation Counsel Marco A. Palmieri of the Criminal Division’s Public Integrity Section (PIN) and Senior Trial Attorney Mona Sedky of the Computer Crime and Intellectual Property Section prosecuted the case. Former PIN Trial Attorney Rebecca G. Ross provided significant assistance.
Federal Jury Convicts Former Louisiana Police Officer of Civil Rights Violation for Using Dangerous Weapons to Assault a Non-Violent Loitering SuspectRead the Press Release
After a four-day trial, a federal jury convicted a former Louisiana police officer on one charge of deprivation of rights under color of law for assaulting a non-violent loitering suspect.
The evidence at trial established that Dylan Hudson, 36, physically assaulted a loitering suspect during a daytime arrest in Shreveport, Louisiana. During the arrest, the defendant repeatedly struck the suspect in the head and face. The conduct described during the trial and played for the jury on video from police dashboard cameras included several applications of potentially deadly force. The defendant struck the suspect in the head with a loaded pistol, tased him at the base of the skull, and kicked him in the face. The defendant’s fellow officers testified that the loitering suspect was non-violent throughout the entire arrest, and that the defendant’s repeated violations of training and policy created a danger not only to the suspect, but to others as well.
“This defendant’s conduct, captured on video, was appalling,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When an officer so grievously abuses the authority entrusted to him by his community, the Justice Department will respond with the full force of the law.”
“Dylan Hudson’s conduct during this incident was unacceptable and he does not deserve the honor of wearing the badge. I hope the victim, our Shreveport community and even the Shreveport Police Department can now begin to heal from Hudson’s unlawful conduct,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana. “This is the first trial resulting in a guilty verdict that we have ever had in the history of this district where the defendant was a member of the Shreveport Police Department. This administration is committed to aggressively investigating and prosecuting unjustified, use of force incidents to the fullest extent of the law.”
“Mr. Hudson’s despicable actions have no place in law enforcement,” said Special Agent in Charge Douglas A. Williams Jr. of the FBI New Orleans Field Office. “The FBI and its partners are dedicated to protecting the public from individuals who misuse the trust and authority of the badge.”
The maximum penalty for the charged crime is 10 years of imprisonment. Sentencing is scheduled for Oct. 26.
Assistant Attorney General Clarke, U.S. Attorney Brown and Special Agent in Charge Williams made the announcement.
The FBI the investigated the case.
Assistant U.S. Attorney Mary Mudrick for the Western District of Louisiana and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section prosecuted the case.
Deputy U.S. Marshal Pleads Guilty to Obtaining Cell Phone Location Information UnlawfullyRead the Press Release
A deputy U.S. Marshal pleaded guilty today to misusing a law enforcement service to obtain cell phone location information for personal use.
According to court documents, Adrian Pena, 49, of Del Rio, Texas, used a law enforcement service to locate individuals with whom Pena had personal relationships and their spouses. Pena obtained the cell phone data by uploading blank and random documents to a system operated by Securus Technologies exclusively for authorized law enforcement purposes. Pena falsely certified that those documents were official and that they granted Pena permission to obtain the individuals’ data.
“Adrian Pena abused his position as a deputy U.S. Marshal when he used a law enforcement service to locate the cell phones of personal associates and their spouses, and then lied to cover up his illegal actions,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As this prosecution demonstrates, the Justice Department and our partners are committed to holding accountable any official who violates the public’s trust and misuses sensitive law enforcement capabilities for personal ends.”
Pena also lied to law enforcement during the investigation. When Pena was asked, “Other than yourself, have you ever pinged anybody using the system? You know, family members, friends, ex-girlfriend?,” Pena falsely responded, “No.” After the interview, Pena attempted to cover up his illegal actions by asking one of the individuals for a notarized letter. Pena then drafted a statement in the individual’s name and caused the individual to sign it. The statement falsely stated that the individual granted Pena unlimited access to the individual’s social media and cell phone data, including call history, text messages, and cell phone location data.
“We trust law enforcement officers to act with integrity. Instead, Pena abused his access to sensitive information for personal gain,” said Special Agent in Charge Cloey C. Pierce of the Department of Justice Office of the Inspector General (DOJ-OIG) Dallas Field Office. “The DOJ-OIG is committed to rooting out those who abuse their power and bringing them to justice.”
Pena pleaded guilty to unlawfully obtaining confidential phone records. He faces a maximum penalty of 10 years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DOJ-OIG is investigating the case.
Deputy Chief Robert Heberle and Trial Attorney Nicole Lockhart of the Criminal Division’s Public Integrity Section (PIN) are prosecuting the case, with substantial assistance from PIN Trial Attorney Alexander Gottfried.
Member of White Supremacist Group Charged for Allegedly Defacing Synagogue with Neo-Nazi SymbolsRead the Press Release
A Michigan man was indicted for conspiring with others and allegedly defacing Temple Jacob – a Jewish synagogue in Hancock, Michigan.
According to the court documents, Nathan Weeden, 23, of Houghton, and co-conspirators Richard Tobin, of New Jersey, and Yousef Barasneh, of Wisconsin defaced Temple Jacob with swastikas and symbols associated with The Base, a multi-state, white supremacist group.
In September 2019, Weeden, Tobin, and Barasneh – all members of The Base – allegedly used an encrypted messaging platform to discuss vandalizing property associated with African Americans and Jewish Americans. Weeden and his co-conspirators dubbed their plan, “Operation Kristallnacht,” which in German means “Night of Broken Glass” and is in reference to the events that took place on Nov. 9 – 10, 1938, in which Nazis murdered Jewish people and burned and destroyed their homes, synagogues, schools and places of business. Weeden allegedly carried out this plan on Sept. 21, 2019, when he spray-painted swastikas and symbols associated with The Base on the outside walls of Temple Jacob.
Weeden is charged with one count of conspiracy against rights and one count of damage to religious property. Weeden faces a maximum penalty of 10 years in prison and a $250,000 fine and a maximum penalty of one year in prison and a $100,000 fine, respectively. Weeden was arrested on June 29.
The FBI investigated the case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Hancock Police Department.
Assistant U.S. Attorney Nils Kessler for the Western District of Michigan and Trial Attorney Eric Peffley 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.
Weeden IndictmentJustice Department Opens Application Period for Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
The Justice Department is pleased to announce the opening of the application period for federally recognized Tribes and intertribal consortia to participate in the Tribal Access Program (TAP) for National Crime Information, which improves public safety by providing federally recognized Tribes the ability to access and exchange data with national crime information databases for authorized criminal justice and non-criminal justice purposes, such as the FBI’s National Instant Criminal Background Check System (NICS).
“To improve public safety in Indian country, we must break down the barriers to criminal justice information that Tribal communities have faced for years,” said Attorney General Merrick B. Garland. “That is why the Justice Department is expanding Tribal communities’ access to national crime databases that enhance law enforcement efforts and coordination through the Tribal Access Program.”
“The Tribal Access Program has strengthened Tribal criminal justice agencies,” said Deputy Attorney General Lisa O. Monaco. “By using TAP, participating Tribes have shared information about missing persons, apprehended fugitives, registered sex offenders, enforced protection orders, and have made hundreds of entries into the FBI’s NICS Indices database to prevent prohibited persons from illegally obtaining access to firearms. The efficient and effective sharing of criminal justice information has improved public safety in Indian country and beyond.”
“The Justice Department is committed to supporting Tribal law enforcement and protecting Tribal communities,” said Associate Attorney General Vanita Gupta. “TAP empowers participating Tribes to take advantage of information from across the country to better investigate and prosecute crime, carry out background checks for potential foster parents, and keep their communities safe and secure from domestic violence and child abuse.”
The program provides training as well as a web-based application and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI’s Criminal Justice Information Services (CJIS) systems. There are currently 123 federally recognized Tribes participating in TAP. The Department will accept TAP applications from July 3 to Sept. 1. Tribes selected to participate will be notified later in September.
“The TAP program has allowed the Poarch Creek Tribal Police Department to have cost-effective access to the National Crime Information Center (NCIC) system,” said Chief Chris Rutherford of the Poarch Creek Tribal Police. “Now our officers have full NCIC access from their patrol vehicles, desk, or through our Emergency Tribal Dispatch Center. The value of this program to our reservation far exceeds the minimal effort required to be a participating partner in the TAP program.”
For Tribes that are considering applying, TAP staff will be conducting informational webinars describing the program and its capabilities. Webinars will be offered throughout July and August. For more information about TAP, including webinar dates, times, and access information, visit www.justice.gov/tribal/tribal-access-program-tap.
Using TAP, Tribes have shared information about missing persons; entered domestic violence orders of protection for nationwide enforcement; registered convicted sex offenders; run criminal histories; located fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
“We cannot say enough about the efforts that have been made to get the Kickapoo Traditional Tribe of Texas (KTTT) ready for this program,” said Director Cristina Collett-Jensen of the Kickapoo Traditional Tribe of Texas Legal Department. “Through these efforts, KTTT will have access to information that will substantially improve the KTTT Police Department’s operations, and thereby allow us to better protect and serve the KTTT community.”
The Department offers TAP services through one of the following two methods:
- TAP-LIGHT: Provides application that enables full access (both query and entry capabilities) to national crime information databases including the NCIC, the Interstate Identification Index, and the International Justice and Public Safety Network for criminal justice purposes.
- TAP-FULL: In addition to the basic access capabilities of TAP-LIGHT, provides a kiosk workstation that enables the ability to submit and query fingerprint-based transactions via FBI’s Next Generation Identification system for both criminal justice and non-criminal justice purposes.
Because of the program’s funding sources, eligible Tribes must have — and agree to use TAP for — at least one of the following:
- A Tribal sex offender registry authorized by the Adam Walsh Child Protection and Safety Act,
- A Tribal law enforcement agency that has arrest powers,
- A Tribal court that issues orders of protection, or
- A Tribal government agency that screens individuals for foster care placement or that investigates allegations of child abuse/neglect.
TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking; the Office of Community Oriented Policing Services; the Office for Victims of Crime; and the Office on Violence Against Women. TAP is co-managed by the Department’s Office of the Chief Information Officer and Office of Tribal Justice.
Florida Contractors and Owner to Pay More than $7.7 Million to Resolve False Claims Act Allegations Relating to Procurement of Small Business ContractsRead the Press Release
HX5 LLC and its owner and Chief Executive Officer, Margarita Howard, located in Fort Walton Beach, Florida, and an affiliated joint venture HX5 Sierra LLC, located in Cleveland, Ohio, have agreed to pay the United States $7,759,693.92 to resolve allegations that they violated the False Claims Act by knowingly providing false information to the Small Business Administration relating to HX5’s and HX5 Sierra’s eligibility for federal set-aside contracts intended for small businesses owned and controlled by socially and economically disadvantaged individuals.
“Small business set-aside contracts assist small businesses, including socially disadvantaged companies, to compete in the American economy,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When companies misrepresent their eligibility for such contracts, they prevent others from receiving the business opportunities Congress intended.”
The SBA’s 8(a) business development program is intended to help small businesses owned and controlled by socially and economically disadvantaged individuals. Once certified, 8(a) Program participants are eligible to receive federal contracting preferences. The settlement announced today resolves allegations that HX5, HX5 Sierra and Howard fraudulently obtained six 8(a) contracts during the period Jan. 1, 2015, to Dec. 31, 2021. More specifically, the government alleged that HX5 and Howard failed to report distributions and payments to Howard’s family members and allegedly provided false information to SBA regarding Howard’s assets. The government further alleged that if HX5 and Howard had provided accurate information it would have resulted in HX5’s termination from the SBA 8(a) Program, which, in turn, would also have made HX5 Sierra ineligible for 8(a) set-aside contracts. As a result of the alleged false statements, HX5 improperly maintained its status as an 8(a) Program participant, and HX5 and HX5 Sierra were awarded 8(a) set-aside contracts by the National Aeronautics and Space Administration (NASA), the U.S. Army, and the U.S. Air Force for which the companies were not eligible.
“We are very pleased with today’s agreement,” said U.S. Attorney Jason R. Coody for the Northern District of Florida. “This result demonstrates a coordinated effort among our agency partners to ensure that disregard for the integrity of small business contracting will not go unchecked.”
“Individuals that provided fraudulent information to gain access to SBA funds intended to support eligible small businesses will face justice,” said Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General’s Eastern Region. “Today’s settlement sends a strong message that those responsible will be held accountable. I want to thank the U.S. Department of Justice and our law enforcement partners for their support and dedication to pursuit of justice in this case.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Vantage Systems Inc. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Vantage Systems, Inc. v. HX5 LLC, et al., et al., No. 20-cv-3649 (N.D. Fla.). As part of today’s resolution, Vantage Systems will receive $1,357,964.00.
The resolution obtained in this matter was the result of a coordinated effort among the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Northern District of Florida, with assistance from the NASA Office of the General Counsel, NASA Office of Inspector General, Air Force Office of General Counsel, Air Force Office of the Judge Advocate General, Air Force Office of Special Investigations, Army Office of the Judge Advocate General, Army Criminal Investigation Division, the Defense Contract Audit Agency, the Defense Contract Management Agency, and the Small Business Administration’s Office of Inspector General.
The matter was handled by Trial Attorney Laura Hill of the Justice Department’s Civil Division, former Trial Attorney Andrew Jaco of the Justice Department’s Civil Division (now with the Justice Department’s Criminal Division), and Assistant U.S. Attorney Mary Ann Couch for the Northern District of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of liability.