District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Justice Department Secures Agreement with General Motors and Announces a New Resource to Help Employers Avoid Immigration-Related Discrimination When Complying with Export Control LawsRead the Press Release
Note: View the Spanish version of the release here.
The Justice Department announced today that it has secured a settlement agreement with General Motors (GM) to resolve the department’s determination that GM discriminated against non-U.S. citizens in violation of the Immigration and Nationality Act (INA). The department also announced the release of a new fact sheet to help employers avoid citizenship status discrimination when complying with export control laws, which govern U.S. companies’ ability to export certain goods and software, technology and technical data. The department’s investigation of GM revealed that the company’s violations stemmed in part from its failure to properly consider the INA’s nondiscrimination requirements when also complying with export control laws.
“Export control laws do not justify or authorize an employer to discriminate against non-U.S. citizens in violation of the Immigration and Nationality Act,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When employers commit unlawful discrimination, the Civil Rights Division will continue holding them accountable. The Civil Rights Division is issuing a new fact sheet to help educate employers and promote greater compliance with anti-discrimination law going forward.”
Under export control laws and regulations, such as the International Traffic in Arms Regulations and the Export Administration Regulations, all “U.S. persons” working at U.S. companies can access export-controlled items without authorization from the U.S. government. U.S. persons under these laws include U.S. citizens, U.S. nationals, lawful permanent residents, refugees and asylees. An employer might need authorization from the State Department or the Commerce Department to share or release export-controlled items to workers who are not U.S. persons. To confirm if an employer needs to request authorization for an employee to access export-controlled information, the employer might need to obtain a worker’s citizenship or immigration status information to determine whether they are a “U.S. person.” This process is referred to as an “export compliance assessment.”
The department’s investigation determined that until at least September 2021, GM’s export compliance assessments unnecessarily required lawful permanent residents to provide an unexpired foreign passport as a condition of employment, imposing a discriminatory barrier on them in the hiring process. From at least July 2019 until May 2021, GM improperly combined its process for verifying workers’ permission to work in the United States with its export compliance assessment, which resulted in GM unnecessarily requiring that newly hired non-U.S. citizens provide specific and unnecessary documents to prove their permission to work.
Under the terms of the agreement, GM will pay $365,000 in civil penalties to the United States. The agreement also requires GM to train its personnel on the INA’s requirements, revise its employment policies and be subject to departmental monitoring and reporting requirements. Specifically, GM must separate its process to verify permission to work in the United States from its export compliance assessment process, and stop requiring lawful permanent residents to present foreign passports as a condition of employment.
The INA’s anti-discrimination provision generally prohibits employers from discriminating based on citizenship, immigration status or national origin during the hiring process, including by imposing unnecessary documentary demands as a condition of employment. This law also prohibits employers from asking for more documents than necessary or specific documents when checking an employee’s permission to work because of citizenship, immigration status or national origin. Federal law allows workers to choose which valid, legally acceptable documentation to present to demonstrate their identity and permission to work, regardless of citizenship, immigration status or national origin. As explained in the fact sheet issued today, these employer obligations do not change when complying with export-control laws and regulations.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute generally prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid discrimination when complying with export control requirements on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe for email updates from IER.
El Departamento de Justicia llega a un acuerdo con General Motors y anuncia un nuevo recurso para ayudar a los empleadores a evitar la discriminación relacionada con la inmigración en cuanto al cumplimiento con las leyes de control de exportacionesRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con General Motors (GM) que resuelve la determinación del Departamento que GM discriminó a no ciudadanos de los EE. UU., en contra de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés). Por otra parte, el Departamento anunció la publicación de una nueva hoja informativa que ayudará a los empleadores a evitar la discriminación por motivos de estatus de ciudadanía a la hora de cumplir con las leyes de control de exportaciones, las cuales gobiernan la capacidad de las empresas estadounidenses a exportar ciertos bienes y software, tecnología y datos técnicos. La investigación de GM que el Departamento realizó reveló que las infracciones de la compañía se debían, en parte, a no haber considerado adecuadamente los requisitos antidiscriminatorios de la INA en el momento de cumplir también con las leyes de control de exportaciones.
«Las leyes de control de exportaciones no justifican ni autorizan a un empleador a discriminar a no ciudadanos de los EE. UU., en contra de la ley de Inmigración y Nacionalidad», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Cuando los empleadores cometen actos discriminatorios ilegales, la División de Derechos Civiles seguirá obligándoles a rendir cuentas de sus acciones. La División de Derechos Civiles está emitiendo una nueva hoja informativa que ayudará a educar a los empleadores y promover mayor cumplimiento con las leyes antidiscriminatorias en el futuro».
Conforme los reglamentos y leyes de control de exportaciones, tales como los Reglamentos sobre el Tráfico Internacional de Armas y los Reglamentos para la Administración de Exportaciones, toda «persona en los EE. UU.» que está trabajando para una compañía estadounidense puede acceder a artículos sometidos al control de exportaciones sin la autorización del Gobierno de los EE. UU. En virtud de estas leyes, las personas en los EE. UU. incluyen a ciudadanos de los EE. UU., nacionales de los EE. UU., residentes permanentes legales, refugiados y asilados. Es posible que un empleador necesite la autorización del Departamento de Estado o el Departamento de Comercio para poder compartir o entregar artículos sometidos al control de exportaciones a trabajadores que no son «personas en los EE. UU.» Para confirmar si un empleador necesita pedir una autorización para un empleado para acceder a información sometida al control de exportaciones, puede que el empleador necesite obtener información sobre el estatus migratorio o de ciudadanía del trabajador para poder determinar si son una «persona en los EE. UU.» A este proceso se le llama una «evaluación del cumplimiento de exportaciones».
La investigación del Departamento determinó que, al menos hasta septiembre del 2021, las evaluaciones del cumplimiento de exportaciones de GM requerían, de manera innecesaria, que residentes permanentes legales proporcionaran un pasaporte extranjero vigente como condición de empleo, lo que les impuso una barrera discriminatoria durante el proceso de contratación. Y al menos desde julio del 2019 hasta mayo del 2021, GM combinó, de manera incorrecta, su proceso para verificar el permiso de los trabajadores para trabajar en los Estados Unidos con su evaluación del cumplimiento de exportaciones, lo que tuvo el efecto de que GM requirió, de forma innecesaria, que no ciudadanos de los EE. UU. que fueran recién contratados proporcionaran documentos específicos e innecesarios para demostrar su permiso para trabajar.
Conforme el acuerdo, GM pagará una sanción civil a los Estados Unidos que asciende a $365,000. Asimismo, el acuerdo requiere que GM capacite a su personal en cuanto a los requisitos de la INA, que revise sus políticas de empleo y que se someta a los requisitos de supervisión y declaración del Departamento. En concreto, GM deberá separar su proceso de verificación del permiso para trabajar en los Estados Unidos de su proceso de evaluación del cumplimiento de exportaciones y dejar de requerir que los residentes permanentes legales presenten pasaportes extranjeros como condición de su empleo.
Por lo general, la disposición antidiscriminatoria de la INA prohíbe que los empleadores discriminen por motivos de ciudadanía, estatus migratorio o nacionalidad de origen durante el proceso de contratación, lo que incluye la imposición de exigencias documentales innecesarias como condición de empleo. Asimismo, esta ley prohíbe que los empleadores pidan documentos específicos o más de los necesarios a la hora de comprobar el permiso para trabajar de un empleado por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen. Las leyes federales permiten a los trabajadores elegir los documentos válidos y legalmente aceptables que desean presentar para demostrar su identidad y permiso para trabajar, independientemente de su ciudadanía, estatus migratorio o nacionalidad de origen. Tal y como se explica en la hoja informativa que se emitió hoy, estas obligaciones del empleador no cambian cuando uno tiene que cumplir con los reglamentos y leyes de control de exportaciones.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley, por norma general, prohíbe la discriminación con base en el estatus de ciudadanía y la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; las prácticas documentales injustas; las represalias y la intimidación.
Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este video corto. Para más información sobre cómo los empleadores pueden evitar la discriminación en su cumplimiento con los requisitos de control de exportaciones, vaya al sitio web de la IER. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a inscríbase.
Sibley Hospital and Johns Hopkins Health System Settle Allegations of Improper Compensation ArrangementsRead the Press Release
Sibley Hospital (Sibley) and its parent company, Johns Hopkins Health System (Johns Hopkins), have agreed to pay the United States $5 million to resolve allegations arising from claims that Sibley submitted to the Medicare Program, the Justice Department announced today.
The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. It is intended to ensure that medical decision-making is not influenced by improper financial incentives and instead is based on the best interests of the patient.
Today’s settlement resolves allegations that, from 2008 through 2011, Sibley violated the Stark Law by billing Medicare for services referred by ten cardiologists to whom Sibley was paying compensation that exceeded the fair market value of the services provided. These allegations arose out of conduct that Sibley and Johns Hopkins self-disclosed to the United States.
“Improper financial arrangements between hospitals and physicians can influence the type and amount of health care that is provided,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable those who violate prohibitions designed to protect the integrity of physician decision-making.”
“Patients have the right to medical care that is strictly about their health and not about the financial benefit or obligation that a physician might receive or owe,” said U.S. Attorney Graves for the District of Columbia. “We welcome conversations with anyone who might have credible information that medical care is being undermined by outside influences. This office works in concert with many partners to protect the public, including the Fraud Section of the Department of Justice and the Office of Inspector General for the U.S. Department of Health, to ensure the rules are followed.”
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section), the U.S. Attorney’s Office for the District of Columbia and the Office of Inspector General for the Department of Health and Human Services.
This matter was handled by Fraud Section Attorney David Wiseman and Assistant U.S. Attorney Heather Graham-Oliver for the District of Columbia.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Readout of Assistant Attorney General Kenneth A. Polite, Jr.’s Trip to LithuaniaRead the Press Release
On April 13 and 14, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division traveled to Vilnius, Lithuania, to meet with the Ukraine Joint Investigation Team (JIT), which is investigating core international crimes committed in Ukraine.
Representatives of the JIT in attendance were from the countries of Lithuania, Ukraine, Poland, Estonia, Latvia, Slovakia, and Romania, as well as Eurojust and the International Criminal Court.
“We had productive conversations on ongoing investigations, and I pledged the U.S. Department of Justice’s increased support,” said Assistant Attorney General Polite. “Just one month ago, on March 3, in Lviv, Ukraine, U.S. Attorney General Merrick Garland signed a Memorandum of Understanding (MOU) with all seven JIT national members, becoming the first country to do so. On Thursday, in an effort to further strengthen this partnership, the U.S. Department of Justice pledged to second an experienced prosecutor to the International Centre for the Prosecution of the Crime of Aggression against Ukraine (ICPA) that will be based at Eurojust in The Hague. We look forward to providing additional resources to assist our colleagues from Ukraine and other JIT member partners, including by sharing our expertise to enhance investigations into atrocities committed by Russian perpetrators. Our mission is clear, our resolve will not weaken, and our determination to seek justice will not waiver. The U.S. Department of Justice is committed to holding Russian perpetrators accountable for their brutal and unprovoked invasion of Ukraine.”
(From Left to Right) Assistant Attorney General Polite, Ukrainian Prosecutor General Andriy Kostin, Lithuanian Prosecutor General Nida Grunskienė, and Eurojust Vice President and National Member for Lithuania Margarita Šniutytė-Daugėlienė.One of the main agenda points of the JIT coordination meeting was the ICPA's implementation and future work. The ICPA will be part of the existing support structure for the JIT. It will be based at Eurojust in The Hague and will have a specific focus on supporting and enhancing investigations into the crime of aggression against Ukraine.
AAG Polite concluded April 13 by attending a reception organized by the Lithuanian Prosecutor General Nida Grunskienė. On April 14, AAG Polite met separately with Ukrainian Prosecutor General Andriy Kostin. Also on April 14, the three leaders and Eurojust Vice-President and National Member for Lithuania, Ms. Margarita Šniutytė-Daugėlienė, delivered remarks at a press conference with Lithuanian press. The same day, AAG Polite had a courtesy call with U.S. Ambassador Robert Gilchrist and Deputy Chief of Mission Tamir Waser to convey the Department’s gratitude for the Embassy’s support for the Justice Department’s personnel and programs.
(From Left to Right) Assistant Attorney General Polite, Ukrainian Prosecutor General Andriy Kostin, and Lithuanian Prosecutor General Nida Grunskienė.The AAG’s trip concluded with a visit to Lithuania’s Old Town.
Assistant Attorney General Polite in Vilnius, Lithuania.Partners agreed to cooperate extensively and emphasized their shared commitment and dedication to ensuring that Russian perpetrators of war crimes in Ukraine are prosecuted to the fullest extent of the law.
Nine Additional States Join Justice Department’s Suit Against Google for Monopolizing Digital Advertising TechnologiesRead the Press Release
The Attorneys General of Arizona, Illinois, Michigan, Minnesota, Nebraska, New Hampshire, North Carolina, Washington and West Virginia today joined a civil antitrust lawsuit filed by the Justice Department’s Antitrust Division along with the Attorneys General of California, Colorado, Connecticut, New Jersey, New York, Rhode Island, Tennessee and Virginia, against Google for monopolizing multiple digital advertising technology products in violation of Sections 1 and 2 of the Sherman Act. The Antitrust Division and the state Attorneys General filed an amended complaint in the Eastern District of Virginia.
“We look forward to litigating this important case alongside our state law enforcement partners to end Google’s long-running monopoly in digital advertising technology markets,” said Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Today we welcome the States of Arizona, Illinois, Michigan, Minnesota, Nebraska, New Hampshire, North Carolina, Washington, and West Virginia who join our existing coalition of eight co-plaintiff states, to deliver the benefits of competition to website publishers, digital advertisers, and the American public.”
Justice Department Secures Agreement with Washington School District to Remedy Discriminatory Seclusion and Restraint PracticesRead the Press Release
The Justice Department announced today a settlement agreement with Spokane Public Schools in Spokane, Washington, to address the discriminatory use of seclusion and restraint against students with disabilities. The settlement agreement, which resolves the department’s investigation under Title II of the Americans with Disabilities Act (ADA), will protect students with disabilities by eliminating seclusion and reforming the district’s restraint practices.
The department’s investigation concluded that the school district inappropriately and repeatedly secluded and restrained students with disabilities and did not limit its use of restraint and seclusion to emergency situations, as required by state law and the district policy. Instead, the district restrained and secluded students with disabilities to address noncompliant behavior, even when those actions appeared to escalate the behavior or when students showed clear signs of trauma. As a result, students with disabilities missed hundreds of hours of instructional time. Under the settlement agreement, Spokane Public Schools has agreed to end the use of seclusion, overhaul its restraint practices and better train staff on how to anticipate, address and de-escalate students’ disability-related behaviors through effective and appropriate interventions and supports.
“When schools discriminate against students with disabilities through improper restraints and seclusion, they unjustly deprive those students of equal access to education and the opportunity to succeed,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Schools need the tools and the training to appropriately serve all students, including students with disabilities. This agreement will put Spokane Public Schools firmly on a path to systemic reforms that will protect students with disabilities and provide them with a safe and supportive learning environment. The Civil Rights Division will continue to fight discrimination against children with disabilities in public schools across the country.”
“Each and every child deserves a fair and equal opportunity to learn and thrive,” said U.S. Attorney Vanessa R. Waldref for the Eastern District of Washington. “Our office, in partnership with the department’s Civil Rights Division, will vigorously investigate allegations of discrimination on the basis of disability in all settings, including in our public schools. We are heartened by the school district’s commitment to this sweeping agreement, which will undoubtedly improve the education and everyday lives of many of our students in the Spokane community.”
The district fully cooperated throughout the investigation, and before entering the agreement, began steps to voluntarily reform its practices. Among other actions, under the agreement, the district will:
- Prohibit the use of seclusion (referred to in the agreement as “isolation”) at all district schools;
- Only restrain students when their behavior poses an imminent likelihood of serious harm to the student or another person;
- Improve data collection efforts and establish review protocols following the use of restraint;
- Review and improve behavioral intervention plans;
- Create classroom-wide behavior management plans that promote positive behaviors and de-escalate noncompliant behaviors to support teachers and students in classrooms serving students with high-intensity behaviors;
- Deliver appropriate training and resources to help schools implement the agreement and respond appropriately to student behavior;
- Create a complaint procedure through which families can file a complaint with the district regarding the use of seclusion or restraint;
- Offer counseling and compensatory education services to students with disabilities who were subjected to the district’s discriminatory practices; and
- Appoint an Intervention Coordinator to ensure the district’s compliance with the agreement and Title II of the ADA.
Enforcement of Title II of the ADA is a priority of the Civil Rights Division. This agreement is the most recent in a series of division settlements to address and prevent unlawful seclusion and restraint of students with disabilities in public schools. On Feb. 16, for example, the division reached a settlement with the Anchorage School District in Alaska to address the discriminatory use of seclusion and restraint against students with disabilities. The division reached similar agreements in December 2022 with the Okaloosa County School District in Florida, in September 2022 with the Cedar Rapids Community School District in Iowa, in December 2021 with the Frederick Public School District in Maryland and in December 2020 with the North Gibson School Corporation in Indiana.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the Educational Opportunities Section’s work is available at www.justice.gov/crt/educational-opportunities-section. To learn more about the section’s work under the ADA to combat improper seclusion in schools, visit this website: www.justice.gov/schoolseclusion.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.
Justice Department Files Sexual Harassment Lawsuit Against Kentucky Rental Property OwnerRead the Press Release
The Justice Department announced today that it has filed a lawsuit against the owner and operator of rental properties in the Pulaski County, Kentucky, area for engaging in sexual harassment and retaliation in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the Eastern District of Kentucky, alleges that Danny T. Bell sexually harassed numerous female tenants since at least 2010. According to the complaint, Bell made repeated and unwelcome sexual comments to female tenants, entered the homes of female tenants without their consent, touched female tenants’ bodies without their consent, offered reduced or free rent in exchange for sexual contact and took adverse housing-related actions against female tenants who refused his sexual advances.
“Everyone deserves to feel safe at home, and sexual harassment in housing destroys that feeling of security,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously enforce the Fair Housing Act to protect tenants from harassment and retaliation by their landlords.”
“Whenever sexual harassment in housing erodes the security and sanctity of a person’s home, it is more than a shame – it is a violation of the law,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “We are committed to doing our part to enforcing the law and ensuring the protections of the Fair Housing Act.”
The lawsuit seeks monetary damages to compensate persons harmed by the alleged harassment, a civil penalty to vindicate the public interest and a court order barring future discrimination.
The Justice Department launched its Sexual Harassment in Housing Initiative in October 2017. The department’s initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative, the department has filed 30 lawsuits alleging sexual harassment in housing and recovered over $9.8 million for victims of such harassment.
The Fair Housing Act prohibits discrimination in housing based on sex, race, color, religion, national origin, disability and familial status. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Bell, or who have other information that may be relevant to this case, may contact the Housing Discrimination Tip Line at 1-833-591-0291, select a language, and select option number 2, then option number 8 to leave a message. Individuals may also e-mail the department at [email protected] or submit a report online. Reports also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
The complaint contains allegations of unlawful conduct. The allegations must be proven in federal court.
Credit Card Processors Ordered to Pay $650,000 in Consumer Redress for Assisting in Fraudulent Computer Repair Telemarketing SchemesRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today announced that the government will collect $650,000 in consumer redress from corporate defendants Nexway, SASU, Nexway Group AG, Nexway, Inc., asknet Solutions AG, asknet, Inc., (collectively Nexway), and individual defendants Casey Potenzone and Victor Iezuitov. The defendants’ payment of the $650,000 will result in the suspension of the total monetary judgment of $49.5 million granted by the court.
In a complaint filed in the U.S. District Court for the District of Columbia, the government alleges that, since at least August 2016, the defendants violated the FTC Act and the Telemarketing Sales Rule (TSR) by processing credit card payments for India-based Tech Live Connect and other foreign clients that commit telemarketing fraud via tech support scams. The complaint alleges that Nexway helped its clients open and use merchant accounts to process credit card charges. In a typical scam, Nexway’s client caused deceptive pop-up notifications to appear on a consumer’s computer screen, warning that the computer was infected with a virus or freezing the screen and displaying a phone number to call for help. Consumers who called reached call centers in India and were convinced to pay for “repairs.” The consumers’ credit card charges were processed by Nexway’s credit card merchant account. Nexway received a commission for each charge. The complaint alleges that Nexway and its principals worked with TLC and other fraudster clients despite knowing or consciously avoiding knowing that they were engaged in fraudulent telemarketing and other deceptive practices. The government also asserts that Nexway engaged in “credit card laundering” by allowing its clients to use Nexway’s credit card merchant accounts for their telemarketing scam even though Nexway was not the merchant on those transactions.
“The Department of Justice will not hesitate to pursue and hold accountable payment processors who facilitate tech support scams that defraud consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting consumers from companies that engage in or support deceptive practices.”
“Companies like Nexway that knowingly launder charges for scammers are breaking the law and helping scammers cheat money from consumers,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “The FTC will not hesitate to use its law enforcement powers to stop them.”
This matter is being handled by Claude Scott of the Civil Division’s Consumer Protection Branch and Russell Deitch and J. Ronald Brooke of the FTC.
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 FTC, visit its website at www.FTC.gov.
Construction Company Owner Sentenced to 78 Months in Prison and Ordered to Pay Nearly $1 Million in Restitution for Rigging Bids and Bribing a Public OfficialRead the Press Release
A construction company owner in California was sentenced to 78 months in prison and ordered to pay $984,699.53 in restitution for his role in a bid-rigging and bribery scheme involving California Department of Transportation (Caltrans) improvement and repair contracts.
According to a guilty plea entered on Nov. 14, 2022, in the U.S. District Court for the Eastern District of California in Sacramento, Bill R. Miller engaged in a conspiracy from April 2015 through as late as December 2019. As part of the conspiracy, Miller recruited others to submit sham bids on Caltrans contracts, including co-conspirator William D. Opp, a former business partner who pleaded guilty in the case on Oct. 3, 2022.
In addition to pleading guilty to bid rigging, Miller also pleaded guilty to paying bribes to Choon Foo “Keith” Yong, the former Caltrans contract manager who managed the contracts involved on behalf of Caltrans, a California state agency that receives significant federal funding. On April 11, 2022, Yong pleaded guilty for his role in the bid-rigging and bribery scheme. According to Yong’s plea agreement, Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the bribes that Miller paid to Yong was nearly $1 million. Miller is the first defendant to be sentenced in the case.
“This sentence sends a strong message that criminals who corrupt the competitive bidding process will face stern consequences,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Protecting infrastructure spending and taxpayer dollars remains a top priority for the Antitrust Division and our Procurement Collusion Strike Force partners.”
“A lengthy investigation and a series of guilty pleas has led to the sentencing today for a bid-rigging and bribery conspiracy,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “But our work is not done. Anticompetitive practices harm taxpayers and legitimate businesses alike. My office will continue to investigate and prosecute such conduct.”
“Fair and free competition is essential to ensure taxpayer money is only obligated and spent on essential services and contracts,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI is committed to working with our partners to investigate such allegations, and bringing to justice those who conspire to enrich themselves by cheating the American public as a whole. We hope this sentence serves as ample warning to anyone contemplating a scheme to falsely influence a government bidding process for personal gain.”
Today’s sentencing is the result of a joint investigation that was conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California and the FBI Sacramento Field Office as part of the Justice Department’s Procurement Collusion Strike Force (PCSF).
Trial Attorneys Christopher J. Carlberg and Tai S. Milder of the Antitrust Division and Assistant U.S. Attorney Lee S. Bickley for the Eastern District of California prosecuted the case.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government — federal, state and local. To contact the Procurement Collusion Strike Force, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to construction or infrastructure, go to www.justice.gov/procurement-collusion-strike-force.
40 Officers of China’s National Police Charged in Transnational Repression Schemes Targeting U.S. ResidentsRead the Press Release
Two criminal complaints filed by the U.S. Attorney’s Office for the Eastern District of New York were unsealed today in federal court in Brooklyn charging 44 defendants with various crimes related to efforts by the national police of the People’s Republic of China (PRC) – the Ministry of Public Security (MPS) – to harass Chinese nationals residing in the New York metropolitan area and elsewhere in the United States. The defendants, including 40 MPS officers and two officials in the Cyberspace Administration of China (CAC), allegedly perpetrated transnational repression schemes targeting U.S. residents whose political views and actions are disfavored by the PRC government, such as advocating for democracy in the PRC.
In the two schemes, the defendants created and used fake social media accounts to harass and intimidate PRC dissidents residing abroad and sought to suppress the dissidents’ free speech on the platform of a U.S. telecommunications company (Company-1). The defendants charged in these schemes are believed to reside in the PRC or elsewhere in Asia and remain at large.
“These cases demonstrate the lengths the PRC government will go to silence and harass U.S. persons who exercise their fundamental rights to speak out against PRC oppression, including by unlawfully exploiting a U.S.-based technology company,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “These actions violate our laws and are an affront to our democratic values and basic human rights.”
“China’s Ministry of Public Security used operatives to target people of Chinese descent who had the courage to speak out against the Chinese Communist Party – in one case by covertly spreading propaganda to undermine confidence in our democratic processes and, in another, by suppressing U.S. video conferencing users’ free speech,” said Acting Assistant Director Kurt Ronnow of the FBI Counterintelligence Division. “We aren’t going to tolerate CCP repression – its efforts to threaten, harass, and intimidate people – here in the United States. The FBI will continue to confront the Chinese government’s efforts to violate our laws and repress the rights and freedoms of people in our country.”
Disclosure: U.S. Attorney Breon Peace for the Eastern District of New York is recused from and has not participated in the case captioned United States v. Julien Jin et al., 20-mj-1103.
United States v. Yunpeng Bai, et al.
The two-count complaint charges 34 MPS officers with conspiracy to transmit interstate threats and conspiracy to commit interstate harassment. All the defendants are believed to reside in the PRC, and they remain at large.
As alleged, the officers worked with Beijing’s MPS bureau and are or were assigned to an elite task force called the “912 Special Project Working Group” (the Group). The purpose of the Group is to target Chinese dissidents located throughout the world, including in the United States.
“As alleged, the PRC government deploys its national police and the 912 Special Project Working Group not as an instrument to uphold the law and protect public safety, but rather as a troll farm that attacks persons in our country for exercising free speech in a manner that the PRC government finds disagreeable, and also spreads propaganda whose sole purpose is to sow divisions within the United States,” said U.S. Attorney Breon Peace for the Eastern District of New York. “I commend the investigative team for comprehensively revealing the insidiousness of a state-directed criminal scheme directed at residents of the United States.”
The complaint alleges how members of the Group created thousands of fake online personas on social media sites, including Twitter, to target Chinese dissidents through online harassment and threats. These online personas also disseminated official PRC government propaganda and narratives to counter the pro-democracy speech of the Chinese dissidents. As alleged, for example, Group members created and maintained the fake social media accounts through temporary email addresses, posted official PRC government content, and interacted with other online users to avoid the appearance that the Group accounts were “flooding” a given social media platform. The Group tracks the performances of members in fulfilling their online responsibilities and rewards Group members who successfully operate multiple online personas without detection by the social media companies who host the platforms or by other users of the platforms.
The investigation also uncovered official MPS taskings to Group members to compose articles and videos based on certain themes targeting, for example, the activities of Chinese dissidents located abroad or the policies of the U.S. government.
As alleged, the defendants also attempted to recruit U.S. persons to act as unwitting agents of the PRC government by disseminating propaganda or narratives of the PRC government. On several occasions, the defendants used online personas to contact individuals assessed to be sympathetic and supportive of the PRC government’s narratives and asked these individuals to disseminate Group content.
In addition, Group members took repeated affirmative actions to have Chinese dissidents and their meetings removed from the platform of Company-1. For example, Group members disrupted a dissident’s efforts to commemorate the Tiananmen Square Massacre through a videoconference by posting threats against the participants through the platform’s chat function. In another Company-1 videoconference on the topic of countering communism organized by a PRC dissident, Group members flooded the videoconference and drowned out the meeting with loud music and vulgar screams and threats directed at the pro-democracy participants.
United States v. Julien Jin, et al.
This amended complaint charges 10 individuals, including a former PRC-based Company-1 employee, six MPS officers, and two officials with the CAC, with conspiracy to commit interstate harassment and unlawful conspiracy to transfer means of identification. Nine of the defendants are believed to reside in the PRC and remain at large. The tenth defendant is believed to reside in Indonesia or the PRC and also remains at large.
“The amended complaint charging a former PRC-based employee of a U.S. telecommunications company illustrates the insider threat faced by U.S. companies operating in the PRC,” said First Assistant U.S. Attorney Pokorny for the Eastern District of New York, who thanked Company-1 for its cooperation in the government’s investigation. “As alleged, Julien Jin and his co-conspirators in the Ministry of Public Security and Cyberspace Administration of China weaponized the U.S. telecommunications company he worked for to intimidate and silence dissenters and enforce PRC law to the detriment of Chinese activists in New York, among other places, who had sought refuge in this country to peacefully express their pro-democracy views.”
“These cases demonstrate that the Chinese Communist Party, once again, attempted to intimidate, harass, and suppress Chinese dissidents in the United States,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “In the United States, the freedom of speech is a cornerstone of our democracy, and the FBI will work tirelessly to defend everyone's right to speak freely without fear of retribution from the CCP. These complex investigations revealed an MPS-wide effort to repress individuals by using the U.S. communications platform and fake social media accounts to censor political and religious speech.”
In December 2020, the Department first announced charges against Julien Jin in connection with his efforts to disrupt a series of meetings on the Company-1 platform held in May and June 2020 commemorating the 1989 Tiananmen Square Massacre. Jin served as Company-1’s primary liaison with PRC government law enforcement and intelligence services. In that capacity, he regularly responded to requests from the PRC government to terminate meetings and block users on Company-1’s video communications platform.
As detailed in the original complaint, Jin and others conspired to use Company-1’s U.S. systems to censor the political and religious speech of individuals located in the United States and elsewhere at the direction of the PRC government. For example, Jin and others disrupted meetings held on the Company-1 platform to discuss politically sensitive topics unacceptable to the PRC government – including the Tiananmen Square Massacre. Jin and his co-conspirators fabricated evidence of purported misconduct to cause U.S.-based employees of Company-1 to terminate the meetings.
The allegations in the amended complaint reveal that Jin worked directly with and took orders from defendants at the MPS and the CAC to disrupt meetings on the Company-1 platform and that the co-defendants had targeted U.S.-based dissidents’ speech on Company-1’s platform since 2018.
Starting in 2018, Jin and his co-defendants repeatedly sought to terminate video chat meetings organized by a Chinese dissident residing in New York City who has been a vocal critic of the PRC government and the Chinese Communist Party. After the CAC requested that Company-1 terminate the dissident’s meetings on the Company-1 platform, Jin worked to identify all accounts associated with the dissident, caused meetings related to the dissident to be hosted in a “quarantine zone” – that is, on a server with known lags in response time – and later worked to block all accounts associated with the dissident. Similarly, in 2019, Jin collaborated with the MPS and CAC to block accounts seeking to commemorate the Tiananmen Square Massacre.
The FBI Washington Field Office investigated the cases.
Assistant U.S. Attorneys Alexander A. Solomon, Antoinette N. Rangel, Ian C. Richardson, Nicholas J. Moscow and Jessica K. Weigel of the Eastern District of New York, and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the cases.
The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. Please visit: www.fbi.gov/investigate/counterintelligence/transnational-repression.
Statement from Deputy Attorney General Lisa Monaco on the 10th Anniversary of the Boston Marathon BombingsRead the Press Release
The Deputy Attorney General is a native of Boston. On April 15, 2013, she was the Homeland Security and Counterterrorism Advisor to the President of the United States.
The Justice Department issued the following statement from Deputy Attorney General Lisa Monaco on the 10th anniversary of the Boston Marathon bombings:
“Today marks the 10th anniversary of the Boston Marathon bombings. We remember the innocent lives lost and the many survivors who were injured in a senseless act of terrorism. We also remember their loved ones, whose lives were forever changed that day. And we honor the dedication and heroism of the first responders whose swift actions saved many.
“Ten years ago we saw the very worst in the actions of two terrorists, but we also saw the very best in the resilience of a great city—and in the actions of the law enforcement officers, medical professionals, and bystanders who acted heroically in the wake of the attack. Their strength and resilience showed the world the true meaning of Boston Strong.
“This day, and every day, the professionals of the Department of Justice honor the memory of victims of terrorism by working tirelessly to prevent terrorist acts and by holding those who commit them accountable.”
Seven New England Fishermen Charged with Tax Evasion and Failing to File ReturnsRead the Press Release
Federal grand juries in Providence, Rhode Island, and Boston returned separate indictments charging seven commercial fishermen with tax evasion and failing to file returns.
According to the indictments, the commercial fishermen each worked for fishing companies operating primarily out of New Bedford, Massachusetts, or Point Judith, Rhode Island, and received substantial compensation. The companies allegedly paid the fishermen as independent contractors and documented that income by, among other things, filing Forms 1099 with the IRS that reported the funds paid to the fishermen. It is alleged that notwithstanding the receipt of this income, each fisherman did not file individual tax returns or pay all the taxes owed on that income – for some defendants, they allegedly failed to file and/or pay taxes for a decade or more. To conceal the source and disposition of their income, the fishermen allegedly cashed paychecks and then used the cash to fund their lifestyles. One of the defendants allegedly also used the name and Social Security number of another individual to conduct business as a further effort to hide income. In some instances, the fishermen allegedly filed false tax returns for certain years by either not reporting their fishing income or by reporting false business expense deductions to reduce the amount of taxes they owed. Each allegedly evaded tax on between $900,000 and $1.9 million in income.
The seven fishermen indicted are:
Jorge Cazarin of New Bedford, Massachusetts, was charged with five counts of tax evasion and five counts of willful failure to file tax returns for 2016 through 2020.
Christopher Garraty of Newport and East Greenwich, Rhode Island, was charged with three counts of tax evasion and three counts of willful failure to file for 2016 through 2018, and a fourth count of tax evasion related to taxes he allegedly owed for 2007 through 2011.
Wojciech Kaminski of West Warwick, Rhode Island, was charged with five counts of tax evasion for 2014 and 2016 through 2019 and four counts of willful failure to file tax returns for 2016 through 2019.
Brian Kobus of Durham, Connecticut, was charged with five counts of tax evasion for 2017 through 2021.
Rodolfo Membreno of Fall River, Massachusetts, was charged with six counts of tax evasion for 2012 and 2017 through 2021 and four counts of willful failure to file tax returns for 2017 through 2019 and 2021.
John Doe of New Bedford, Massachusetts, was charged with six counts of tax evasion for 2016 through 2021 and three counts of willful failure to file tax returns for 2016 through 2018.
Miguel Cruz Rubio of New Bedford, Massachusetts, and Elizabethtown, North Carolina, was charged with four counts of tax evasion for 2016 through 2019.
If convicted, each defendant faces a maximum sentence of five years in prison for each evasion count and one year in prison for each failure to file a tax return charge. 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 thanked U.S. Attorney Rachael S. Rollins for the District of Massachusetts and U.S. Attorney Zachary A. Cunha for the District of Rhode Island for their help and assistance in the investigation and prosecution of these cases.
IRS-Criminal Investigation is investigating these cases.
Assistant Chief John Kane and Trial Attorneys Samuel Bean, Matthew Cofer, Christina Grimes, and Ezra Spiro of the Justice Department’s Tax Division are prosecuting the cases.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Court Permanently Shuts Down Detroit Tax Preparation BusinessRead the Press Release
On March 13, 2022, a federal court in Detroit entered a permanent injunction against Jeanisia Saquise Allen and First Choice Tax Solutions, LLC, The Tax Experts, Inc., The Tax Experts, LLC, and Top Notch Taxes, Inc., prohibiting them from preparing federal tax returns for others and owning, operating, or franchising a tax return preparation business. Following a payment by Allen to the government pursuant to a settlement agreement, the court, with the government’s consent, today dismissed claims against Allen and her businesses seeking the disgorgement of ill-gotten gains that they received for the preparation of tax returns.
In addition, in related cases also filed in the same Detroit federal court, the court previously entered permanent injunctions against Jennifer Sherman and Erica McGowan, and their respective related businesses, Sherman Management Co., LLC and America Enterprise, LLC. The government complaints in those cases alleged that Sherman and McGowan entered into agreements with Allen and her entity, The Tax Experts LLC, to use the name “The Tax Experts” to conduct business preparing tax returns. The complaints in the cases against Sherman and McGown alleged that their companies falsely claimed the Earned Income Tax Credit and education credits, fabricated business income and expenses, and claimed improper filing status for customers.
A third lawsuit against Annetta Powell and Jasmine Powell, who the government also alleges entered into agreements to use the name “The Tax Experts” to conduct a tax preparation business, is ongoing in federal court in Detroit. Annetta Powell agreed to the entry of a preliminary injunction barring her and her businesses from preparing federal tax returns for others until the date on which trial on whether a permanent injunction is warranted occurs.
In the case against Allen, the complaint alleges that The Tax Experts has operated as many as 32 tax preparation stores during a single year, primarily in metro-Detroit, but also in Chicago and Los Angeles. Over the course of three years (2017, 2018, and 2019), businesses operating as “The Tax Experts” allegedly prepared more than 17,000 federal tax returns claiming over $82 million in tax refunds. The complaint alleges that Allen and The Tax Experts failed to train, oversee, and control businesses that operate under an agreement to use that name. The complaint against Allen further alleges the Tax Experts prepare false or fraudulent tax returns exhibiting common and widespread false income, expenses, claims, credits, and deductions. According to the complaint against Allen, the IRS examined 716 federal tax returns prepared by The Tax Experts, resulting in a total additional tax owed to the United States of $3,552,114, or an average of $5,349.57 for each adjusted return.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Shady tax return preparers remain a concern of the IRS, which recently warned taxpayers about unscrupulous tax return preparers as part of the IRS’s Dirty Dozen series. As the 2023 tax season continues, 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. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
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.
Caribou Man Faces up to 10 Years Following Guilty Plea for Illegal Possession of a FirearmRead the Press Release
BANGOR, Maine: A Caribou man pleaded guilty in U.S. District Court in Bangor today to being a felon in possession of a firearm.
According to court records, in May 2021, John Sam, 34, knowingly possessed a firearm during a traffic stop in Caribou. A 2017 Maine conviction for robbery precluded Sam from possessing firearms.
Sam faces up to 10 years in prison and a fine of up to $250,000. He also faces up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Caribou Police Department investigated the case.
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Businessman Charged in Fraud Scheme to Conceal $38M from the IRSRead the Press Release
A federal grand jury in Salt Lake City returned an indictment, unsealed today, charging a California businessman with conspiracy to defraud the IRS, conspiracy to commit money laundering, and money laundering.
According to the indictment, from 2013 to 2020, Grigor Termendjian of Los Angeles conspired to defraud the IRS by concealing $38 million of taxable fraud proceeds, which he and others laundered through international and domestic bank accounts. The funds involved in the money laundering transactions were allegedly proceeds from a scheme orchestrated in Utah by Termendjian’s brother, Levon Termendzhyan, aka Lev Aslan Dermen; Jacob Kingston; and others.
Termendjian allegedly sought with his co-conspirators to disguise control of the $38 million by engaging in financial transactions that had no legitimate business purpose. The indictment charges that they created bogus loan agreements, falsely characterized the transfer of fraud proceeds as share purchases or investments and used shell accounts to conceal and disguise the nature, location, source, ownership, and control of the money. Some of the transactions allegedly involved withdrawing funds to purchase cashier’s checks. On one occasion, Termendjian allegedly withdrew over $41 million to purchase two cashier’s checks that he held for several months outside of the U.S. financial system.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
IRS Criminal Investigation and the Environmental Protection Agency Criminal Investigation Division are investigating the case.
Senior Litigation Counsel John E. Sullivan and Trial Attorneys Richard M. Rolwing and Erika V. Suhr of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Statement from Attorney General Merrick B. Garland on Alliance for Hippocratic Medicine v. FDA Appeals DecisionRead the Press Release
The Justice Department today issued the following statement from Attorney General Merrick B. Garland following the Fifth Circuit Court of Appeals’ decision in Alliance for Hippocratic Medicine v. FDA:
“The Justice Department strongly disagrees with the Fifth Circuit’s decision in Alliance for Hippocratic Medicine v. FDA to deny in part our request for a stay pending appeal. We will be seeking emergency relief from the Supreme Court to defend the FDA’s scientific judgment and protect Americans’ access to safe and effective reproductive care.”
Readout of Director Rachel Rossi of the Office for Access to Justice’s Participation in the 2023 American Bar Association Public Defense SummitRead the Press Release
Director Rachel Rossi of the Office for Access to Justice provided remarks today at the American Bar Association’s 2023 Public Defense Summit and named Nikhil Ramnaney as the Office for Access to Justice Senior Counsel, who will serve in a position dedicated to support for state and local public defense. Mr. Ramnaney brings over a decade of experience as a former county public defender and expert on public defense policy, and most recently served in the Justice Department’s Civil Rights Division.
In March, the Office for Access to Justice was joined by Justice Department senior officials to launch a National Public Defense Day Tour in celebration of the 60th anniversary of Gideon v. Wainwright, which held that criminal defendants are entitled to counsel. The Tour included stops in Miami; Tulsa, Oklahoma; the Muscogee (Creek) Nation; Nashville, Tennessee; Las Vegas; and Des Moines, Iowa, where Director Rossi was joined by Associate Attorney General Vanita Gupta. At the Des Moines listening session with local leaders, Associate Attorney General Gupta announced the creation of this new attorney position in ATJ dedicated to supporting, collaborating with and engaging the state and local public defense community.
Readout of Attorney General Merrick B. Garland and Deputy Attorney General Lisa O. Monaco Meeting with Security Cabinet of the Government of MexicoRead the Press Release
Earlier today, following a bilateral meeting between the United States and Mexico at the White House, Attorney General Merrick B. Garland and Deputy Attorney General Lisa O. Monaco hosted a luncheon with U.S. and Mexican government officials focused on our partnership in fighting fentanyl and firearms trafficking. The Mexican delegation was led by Secretary for Security and Citizen Protection Rosa Icela Rodriguez, who was recently appointed as the chair of a presidential commission to combat illicit trafficking in synthetic drugs, firearms, and ammunition. Officials discussed law enforcement efforts in the fight against fentanyl trafficking and the illegal firearms smuggling that strengthens the cartels. They also noted the substantial progress that has been made on both issues through bilateral cooperation.
Both delegations pledged to increase information-sharing and cooperation on criminal investigations and prosecutions focusing on disrupting the entire fentanyl supply chain, beginning with interdiction of precursor shipments from China and other countries, through takedowns of illegal laboratories, to arrests of members of distribution networks, to targeting money laundering facilitators.
Attorney General Garland expressed his deep appreciation for all the sacrifices the Mexican military and law enforcement have made – including facing violence and death to fight the cartels. Deputy Attorney General Monaco thanked the Government of Mexico for their recent high number of extraditions to the United States.
The Mexican delegation also included Secretary of Foreign Affairs Marcelo Ebrard Casaubon, Attorney General Alejandro Gertz Manero, Secretary of Defense General Luis Cresencio Sandoval González, Secretary of the Navy Admiral José Rafael Ojeda Durán, Secretary of Health Jorge Alcocer Varela, and Ambassador to the United States Esteban Moctezuma Barragán.
Attorney General Garland and Deputy Attorney General Monaco were joined by U.S. colleagues, including Homeland Security Advisor Dr. Elizabeth Sherwood-Randall, who is leading the interagency efforts against fentanyl; U.S. Ambassador to Mexico Ken Salazar; Deputy Secretary of Homeland Security John Tien; Director of ONDCP Dr. Rahul Gupta; and State Department Assistant Secretary for International Narcotics and Law Enforcement Affairs Todd Robinson.
Both delegations agreed to further bilateral working groups focusing on the disruption of precursor chemicals shipments and illicit firearms smuggling.
Attorney General Merrick B. Garland and Deputy Attorney General Lisa O. Monaco with U.S. and Mexican government officialsFort Myers Roofing Contractors Plead Guilty to Tax EvasionRead the Press Release
Two Florida businessmen pleaded guilty yesterday to tax evasion.
According to court documents, David Aaron and Russell Ultes were co-owners of Marlin Construction Group LLC (Marlin), a Fort Myers-based residential and commercial roofing company. In 2018 and 2019, Aaron and Ultes diverted millions of dollars of customer checks made payable to Marlin, by cashing them at check-cashing businesses in nearby counties. Aaron and Ultes used the cash to pay personal expenses and caused Marlin’s books and records to falsely underreport the business’s gross receipts and income for those years. Aaron and Ultes provided false information to Marlin’s tax return preparers, resulting in the preparation of false 2018 and 2019 corporate income tax returns (Forms 1120S) that did not report all of the gross receipts and income. Because the income from the false corporate returns flowed through to Aaron and Ultes’s personal returns, their 2018 and 2019 personal income tax returns (Forms 1040) were similarly false. In total, Aaron and Ultes caused a tax loss to the IRS of over $1.4 million.
Aaron and Ultes each face a maximum of five years in prison, a period of supervised release, restitution and monetary penalties. U.S. District Judge Sheri Polster Chappell will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger Handby for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Senior Litigation Counsel Stanley J. Okula, Jr., and Trial Attorney Richard J. Hagerman of the Justice Department’s Tax Division are prosecuting the case.
Adobe Inc. Agrees to Pay $3 Million to Settle Kickback Allegations Involving Federal Software SalesRead the Press Release
Adobe Inc. has agreed to pay $3 million to resolve False Claims Act allegations that it made payments in violation of the Anti-Kickback Act in return for influence over the sale of Adobe software to the federal government.
“Those who do business with the government are prohibited from paying kickbacks, which can result in unnecessary purchases and increase costs to taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to use all appropriate tools to safeguard the integrity of the federal procurement process.”
The settlement announced today resolves allegations that Adobe made improper payments under its Solution Partner program to companies that had a contractual or other relationship with the government that allowed them to influence federal purchases of Adobe software. Between January 2011 and December 2020, Adobe allegedly paid the companies a percentage of the purchase price of the software. The United States contends that these payments constituted prohibited kickbacks that resulted in Adobe causing false claims for payment to be submitted to federal agencies.
“A fair market relies heavily on an even playing field,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “When a company, vendor, or business owner tips the scales to their advantage, it undermines the system. When government dollars are involved, it means taxpayers ultimately bear the burden. Whistleblowers – like those in this case – are to be commended for trying to return the playing field to level.”
“The General Service Administration Office of the Inspector General (GSA-OIG) will continue working to protect taxpayer dollars and the integrity of federal contracting,” said Inspector General Carol F. Ochoa of the GSA. “I appreciate the hard work of the special agents, auditors, and attorneys on this case.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Alan Dowless, Barbara Evans, and Carrie Whalen, who are all former Adobe managers. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of this resolution, Dowless, Evans, and Whalen will receive $555,000. The qui tam case is captioned United States ex rel. Dowless v. Adobe, Inc., Civil Action Number 17-cv-02039 (D.D.C.).
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 Columbia, with assistance from the GSA-OIG and the Defense Criminal Investigative Service.
Senior Trial Attorney Greg Pearson of the Civil Division and Assistant U.S. Attorney Benton Peterson for the District of Columbia handled the matter.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Pharmaceutical Distributer Agrees to Pay $765,000 to Resolve False Claims Act Allegations Relating to Failure to Pay Customs DutiesRead the Press Release
The Justice Department announced today that Danco Laboratories, LLC (Danco), located in New York, has agreed to pay $765,000 to resolve allegations that it violated the False Claims Act by failing to pay certain customs duties, known as marking duties, on imported pharmaceutical products that lacked markings to identify their country of origin.
The Tariff Act of 1930 requires companies that import foreign products into the United States to mark the country of origin on those products. Importers that fail to mark their products are subject to a 10% ad valorem duty. The settlement resolves allegations that, during the period 2011 through 2019, Danco failed to mark imported pharmaceutical products with the appropriate country of origin, and thereafter violated the False Claims Act by knowingly avoiding the marking duties owed to the United States for those imports.
“The False Claims Act protects the public fisc by imposing liability not only on those who knowingly submit false claims to the United States, but also on those who knowingly avoid obligations owed to the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the department’s commitment to ensure that importers properly pay all amounts due under our customs laws.”
“Our office is committed to ensuring that importers are transparent with consumers and comply with customs laws and the False Claims Act,” said U.S. Attorney Brit Featherston. “We will continue to pursue aggressively those who seek to avoid their duties and obligations under the law.”
“The United States has required imported goods to be marked with their country of origin for generations, so American consumers can use that information in their purchasing decisions,” said Director Frank Russo of the U.S. Customs and Broder Protection (CPB) New York Field Office. “CBP takes the marking laws very seriously, and is pleased to work with our partners to ensure importers adhere to all customs laws.”
The civil settlement includes the resolution of claims brought by the Life Legal Defense Foundation under the qui tam or whistleblower provisions of the False Claims. These provisions allow a private party, known as a relator, to file an action on behalf of the United States and receive a portion of any recovery. The qui tam action is captioned U.S. ex rel. Life Legal Defense Foundation v. ASD Specialty Healthcare, LLC, et al., No. 21-cv-0088 (E.D. Tex.). As part of today’s resolution, the whistleblowers will receive approximately $115,000.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Texas with assistance from CPB.
The matter was handled by Trial Attorney Daniel W. Kastner of the Justice Department’s Civil Division and Assistant U.S. Attorneys James Gillingham and Adrian Garcia for the Eastern District of Texas.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Justice Department Announces Major Milestones Achieved in Policing Reform Efforts for the City of Albuquerque and Albuquerque Police DepartmentRead the Press Release
The Justice Department announced today that it has joined with the City of Albuquerque in filing a motion seeking changes to the requirements of the consent decree regarding the Albuquerque Police Department (APD) after achieving compliance with a vast majority of the consent decree.
The proposed modifications are based on the city and APD’s notable progress in implementing the consent decree and continued self-assessment of certain provisions of the decree. According to the Independent Monitor, APD has achieved compliance with 80% of the consent decree.
These proposed changes will help APD improve how it investigates low-level uses of force; improve its process for investigating allegations that officers committed misconduct – a crucial component for APD to enforce the requirements of the consent decree in its day-to-day operations; and build on the successes of Albuquerque Community Safety, a city agency that sends trained civilians instead of police officers to 911 calls for mental health, substance abuse, and homelessness issues. This approach allows officers to focus on addressing violent crime, while also connecting people with the services they need.
The Justice Department and the city agreed to critically consider areas where APD has not achieved full compliance in key areas – such as officers’ use of force – and develop strategies for improvement.
“The Justice Department’s consent decree has provided the strong medicine necessary to remedy problems and improve the way policing is carried out across Albuquerque,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “After almost a decade of meaningful reform called for by our consent decree, we are ushering in a new day for people across the city. We are recognizing the progress that the Albuquerque Police Department has made towards achieving compliance with this consent decree for both the court and the public. Though challenges remain, the Justice Department is committed to supporting city leaders, community stakeholders and the police department as we work together to implement lasting institutional reform that makes constitutional policing a reality for everyone across Albuquerque.”
“Together, we are building the effective and constitutional police department the Albuquerque community deserves,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “This is apparent both in technical compliance and in actual overall reductions in serious uses of force, which showed a 30% reduction last year. This is a credit to the hard work of the City of Albuquerque, the men and women of the Albuquerque Police Department and the relentless involvement of our community partners. We can now focus our efforts on the central mission of this journey: ensuring that APD conducts thorough, timely and reliable investigations of officers’ use of force. Our staunch commitment to this goal, as a community, will deliver a change in the culture of policing that centers the safety of all members of the public.”
Over the past eight years, APD has made significant strides towards achieving compliance with the requirements of the consent decree. For example:
- Equipped All Officers with Body-Worn Cameras: APD provided all officers with body worn cameras, which must be activated during all law enforcement contact with community members.
- Created New Civilian Investigative Unit: APD launched a centralized unit of civilian investigators responsible for investigating low-level uses of force as part of a pilot program.
- Increased Crisis Intervention Training: The city and APD instituted programs and initiatives to minimize the use of force against individuals in crisis due to behavioral health issues. Approximately 54% of patrol officers serve as trained crisis intervention certified responders – far more than APD’s initial goal of 40% of patrol officers.
- New Data Collection Efforts: APD hired a Director of Analytics who oversees APD’s data collection and analysis efforts and develops evidence-based recommendations for policy and management strategies.
- New Policing Reform Office: APD created the Bureau of Police Reform to accelerate reform efforts, provide oversight for internal investigations of officers and ensure that officers receive discipline that is fair, consistent and commensurate with their misconduct.
- Successful Training Academy: The APD Training Academy has received consistently high ratings from the Monitor.
The District Court for the District of New Mexico entered the consent decree in June 2015. The decree, as well as information about the Civil Rights Division, are available on its website at Special Litigation Section Cases and Matters. Additional information about implementation of the consent decree is also available on the website of the U.S. Attorney’s Office at Investigation into Albuquerque Police Department.
Return Preparer and Former Owner of National Tax Preparation Franchise Pleads Guilty to Tax EvasionRead the Press Release
A Georgia man pleaded guilty today to evading the proper assessment of his personal federal income taxes.
According to court documents, from 1999 to 2021, Samir Patel of Statesboro, Georgia, was a tax return preparer at a national return preparation business. In 2015, Patel purchased a franchise of the business in Claxton, Georgia. As the owner, he hired, trained and supervised tax preparers, and continued to prepare returns for customers. Patel, however, willfully filed false income tax returns that underreported his income and evaded proper assessment of his personal taxes for years 2015, 2016, and 2017.
He faces a maximum penalty of five years in prison, as well as a period of supervised release, restitution and monetary penalties. U.S. District Court Chief Judge J. Randal Hall for the Southern District of Georgia will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jill E. Steinberg for the Southern District of Georgia made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Matthew C. Hicks and Richard J. Hagerman of the Justice Department’s Tax Division and Assistant U.S. Attorney John P. Harper III of the Southern District of Georgia are prosecuting the case.
Federal Court Shuts Down Detroit-Area Father-and-Son Tax Return Preparers Until Further NoticeRead the Press Release
On April 10, 2023, the U.S. District Court for the Eastern District of Michigan entered a preliminary injunction against Detroit-area tax return preparers Herman “Eddie” Simmons, Richmond Simmons, and the business Profile Income Tax Co., doing business as Simmons Income Tax Company, enjoining Defendants from preparing federal income tax returns for others through the resolution of their case on the merits.
In issuing the preliminary injunction after holding a hearing and taking evidence, the Court noted that the government supported its motion with twelve sworn declarations in which Defendants’ customers disavowed various aspects of the returns that Defendants prepared for them, in particular, false and inflated deductions for charitable contributions. Defendants’ customers’ declarations repeatedly stated that they had never discussed the deductions at issue with Defendants, and that they had no idea why their returns contained the reported figures. Based on that customer testimony, and the similarities across all the fraudulent returns, the Court found that “filing tax returns with falsified deductions plainly qualifies as acting in willful or reckless disregard of the tax code,” and “that Defendants engaged in a pattern of willfully claiming false or inflated deductions to understate their clients’ liabilities.” The Court also rejected Defendants’ contention that they had made “honest mistakes” in the returns they prepared, finding that their claim that they simply reported whatever their customers told them was not credible. According to the Court, “no reasonable tax preparer would proceed in such a grossly uninformed and willfully ignorant manner.”
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Shady tax return preparers remain a concern of the IRS, which recently warned taxpayers about unscrupulous tax return preparers as part of the IRS’s Dirty Dozen series. As the 2023 tax season continues, 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. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
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.
Two Former Eastern Kentucky Correctional Supervisors Plead Guilty to Roles in the Assault of a Restrained Inmate and Cover-UpRead the Press Release
A former member of Eastern Kentucky Correctional Complex’s (EKCC) internal affairs department pleaded guilty to one count of deprivation of an inmate’s civil rights, and a former EKCC sergeant pleaded guilty to three counts of obstruction of justice for attempting to cover up their roles in the assault of a restrained inmate.
In their plea agreements, James D. Benish, 36, and Randy L. Nickell, 54, acknowledged that on July 24, 2018, they witnessed fellow EKCC correctional officers assault a non-violent inmate who was lying face-down, wearing handcuffs and leg shackles, and isolated in a prison shower cell. Benish admitted that he was present in the shower during the assault, and he further acknowledged that he violated the inmate’s civil rights by failing to intervene and protect the inmate despite having the means and opportunity to do so. Nickell, who stood outside of the shower while the assault occurred, admitted that he falsified records by omitting the assault from his occurrence report, and that he later lied to the supervisor assigned to investigate the incident, as well as to a Kentucky State Police (KSP) detective.
Two other former officers have pleaded guilty in related cases. On Aug. 29, 2022, former EKCC officer Jeffery Havens pleaded guilty to one count of deprivation of civil rights based on his assault of the inmate. On July 11, 2022, former EKCC officer Derek Mays pleaded guilty to four counts of obstruction of justice based on his efforts to cover up the same assault.
Benish and Nickell are scheduled to be sentenced on Dec. 11. Benish faces a maximum sentence of up to 10 years in prison. Nickell faces a maximum of 20 years in prison for each charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office and Colonel Phillip Burnett Jr. Commissioner of Kentucky State Police (KSP) made the announcement.
The FBI Louisville Field Office, KSP and the Kentucky Justice and Public Safety Cabinet investigated the case.
Assistant U.S. Attorneys Zach Dembo and Mary Melton for the Eastern District of Kentucky and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section prosecuted the case.
Readout of U.S. Attorney General Merrick B. Garland’s Meeting with Singapore Attorney General Lucien WongRead the Press Release
U.S. Attorney General Merrick B. Garland met Monday in Washington, D.C., with Attorney General of the Republic of Singapore Lucien Wong.
The leaders discussed the importance of cooperation in international criminal investigations and prosecutions, and on extradition and mutual legal assistance matters, in order to combat cybercrime, cryptocurrency crimes, financial fraud, money laundering, and drug trafficking.
In the meeting, Attorney General Garland thanked Attorney General Wong for the Singapore Attorney General’s Chambers assistance with the investigation of the global bribery and $4.5 billion embezzlement and money laundering scheme involving the Malaysian sovereign wealth fund 1Malaysia Development Berhad (1MDB) and for their recent excellent assistance with extraditions in other cases.
Attorney General Garland reaffirmed our increasingly close and outstanding bilateral relationship over the past decade with Singaporean law enforcement and the Singapore Attorney General’s Chambers.
“The Justice Department’s international law enforcement partnerships are integral to our efforts to uphold the rule of law and keep our country safe,” said Attorney General Merrick B. Garland. “The Department is grateful for its relationship with our Singaporean law enforcement partners and looks forward to continuing our work together to combat transnational threats.”
Also attending the meeting were U.S. Ambassador to Singapore Jonathan Kaplan, Singapore Ambassador to the United States Ashok Kumar Mirpuri, Singapore Deputy Attorney General Ang Cheng Hock, Chief Prosecutor Tan Kiat Pheng, Deputy Public Prosecutor Ryan Lim, Deputy Assistant Attorney General and Counselor for International Affairs Bruce C. Swartz, and Justice Department Attaché for Maritime Southeast Asia Scott Simeon.
Following both Attorneys General meeting, the delegation from Singapore met with Deputy Assistant Attorney General Richard Downing, the Criminal Division’s Computer Crime and Intellectual Property Section, the National Cryptocurrency Enforcement Team, and the FBI to discuss cybercrime, cryptocurrency and blockchain technology issues. They also met with the Justice Department’s Office of International Affairs and the Criminal Division’s Money Laundering and Asset Recovery Section.
U.S. Attorney General Merrick B. Garland with Attorney General of the Republic of Singapore Lucien WongJustice Department Secures Agreement with Florida Restaurant Franchisee to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with Florida-based Destin Wings LLC, doing business as Hooters of Destin (Destin Wings). The settlement resolves the department’s determination that Destin Wings violated the Immigration and Nationality Act (INA) by discriminating against a non-U.S. citizen when checking her permission to work in the United States.
“While employers are legally obligated to verify every new hire’s permission to work in the United States, they cannot discriminate based on the employee’s citizenship status or national origin in the process,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will continue to vigorously combat unlawful discrimination in the workplace and dismantle unnecessary obstacles to work.”
The department’s investigation began when a worker, a non-U.S. citizen, complained that Destin Wings refused to accept her valid documentation proving her permission to work and demanded additional documentation. Although she had permission to work in the United States, she was not able to obtain one of the documents that Destin Wings required because of her citizenship status. The INA’s anti-discrimination provision prohibits employers from asking for specific documents, or more documents than necessary, because of a worker’s citizenship, immigration status or national origin. Employers must allow workers to present whatever acceptable documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine.
The settlement requires Destin Wings to pay a civil penalty to the United States, provide backpay to the worker who complained to the department, train staff on the INA’s anti-discrimination provision and be subject to departmental monitoring for a period of three years.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee, unfair documentary practices, retaliation and intimidation.
Find more information on how employers can avoid discrimination when verifying permission to work 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 free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status or national origin in hiring, firing or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Justice Department Announces Total Distribution of over $6B to Victims of State Sponsored TerrorismRead the Press Release
The U.S. Victims of State Sponsored Terrorism Fund (the Fund) today notified a group of eligible claimants of upcoming payments totaling approximately $2.7 billion that the Fund will begin issuing in the coming weeks. The Fund will issue these payments to 5,361 victims of the Sept. 11, 2001 (9/11) terrorist attacks and certain spouses and children of the victims of those attacks. These payments will bring the total compensation paid by the Fund to victims of international terrorism and their families to more than $6 billion.
“The Fund has collected more than $2 billion in deposits from forfeiture proceeds, penalties, and fines arising from violations of the International Emergency Economic Powers Act or the Trading with the Enemy Act,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This tremendous effort epitomizes our unwavering commitment to the investigation and prosecution of individuals and entities that do business with state sponsors of terrorism. One of the primary goals of the department’s Asset Forfeiture Program is to use forfeited assets to compensate victims. In line with that goal, a significant amount of the Fund’s deposits to date are the result of criminal and civil forfeitures.”
The Fund was established by Congress in 2015 and is administered by the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), under the leadership of Special Master Mary Patrice Brown. The Fund has paid more than $3.3 billion to victims in four rounds of distributions. The payments announced today are in addition to these distributions. The number of eligible claimants has grown from over 2,000 in 2017 to over 15,500 today. Of those, 12,117 claimants are 9/11 victims and their family members, while another 3,652 claimants have claims related to other acts of international state-sponsored terrorism.
Apart from an initial appropriation of $1.025 billion from Congress and additional Congressional appropriations for 9/11 victims and victims of certain other terrorist attacks, funds available for payment from the Fund resulted from Department of Justice prosecutions and cases and other U.S. government enforcement actions. Congress required the deposit into the Fund of certain forfeiture proceeds, penalties, and fines from civil and criminal matters involving prohibited transactions with state sponsors of terrorism. The department has identified more than 125 qualifying matters for deposit into the Fund. The payments announced today come from the Congressional appropriation for 9/11 victims.
“We know that no amount of compensation could ever repair what was lost for those devastated by acts of international terrorism, and that so many victims and their families have waited years and sometimes decades for compensation,” said Special Master Brown. “The dedicated team at the department remains steadfast in its goal of providing compensation to these victims and in its pursuit to deliver them some semblance of justice. Victims and their family members can be assured that their claims will be processed promptly, fairly, and transparently.”
Since establishing the Fund in 2015, Congress has amended its governing statute several times, including updating the eligibility of certain groups of international state-sponsored terrorism victims – such as certain 9/11 victims – to receive payments from the Fund. Following direction from Congress, in 2021, the Government Accountability Office (GAO) calculated lump-sum catch-up payments to certain 9/11 victims and certain spouses and children of 9/11 victims, based on the Fund’s payments to other 9/11-related victims. This GAO report estimated the total lump-sum catch-up payments at approximately $2.7 billion. Most recently, in 2022, Congress appropriated funds for the Fund to issue these lump-sum catch-up payments, leading to the payments the Fund announced today.
In the same legislation, Congress also appropriated an additional $3 billion to a reserve fund from which the Fund will issue lump-sum catch-up payments to certain victims of the 1983 barracks bombings in Beirut, Lebanon, and the 1996 bombing of the Khobar Towers housing complex in Khobar, Saudi Arabia. As with the payments for certain 9/11 victims announced today, GAO will calculate these lump-sum catch-up payments through a process that provides for public comment. Thereafter, the Fund will issue the payments and any amounts remaining in the reserve fund will be made available for distribution pursuant to the statute.
The Fund continues to accept applications and to collect deposits for future payments as authorized by its governing statute. More information about the Fund’s compensation to victims of state sponsored terrorism is available on the Fund’s website at www.usvsst.com, such as application materials, frequently asked questions (FAQs), and publications including Federal Register notices and reports to Congress. Further questions may be directed to MLARS.
El Departamento de Justicia llega a un acuerdo con un restaurante franquiciado en la Florida que resuelve unas acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con una compañía ubicada en la Florida, Destin Wings LLC, conocida comercialmente como Hooters of Destin (Destin Wings). El acuerdo resuelve la determinación del Departamento que Destin Wings vulneró la Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) al discriminar a una persona no ciudadana de los EE. UU. a la hora de comprobar su permiso para trabajar en los Estados Unidos.
«Mientras que los empleadores tienen la obligación legal de verificar el permiso para trabajar en los Estados Unidos de cada persona recién contratada, no pueden discriminar durante el proceso con base en el estatus de ciudadanía o la nacionalidad de origen del empleado», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles seguirá combatiendo con firmeza la discriminación ilícita en el empleo y quitará los obstáculos innecesarios al trabajo».
La investigación del Departamento comenzó cuando una trabajadora no ciudadana de los EE. UU. se quejó que Destin Wings se había negado a aceptar su documentación válida que demostraba su permiso para trabajar y solicitó documentación adicional innecesaria. Aunque tenía permiso para trabajar en los Estados Unidos, no pudo obtener uno de los documentos que Destin Wings requería debido a su estatus de ciudadanía. La disposición antidiscriminatoria de la INA prohíbe que los empleadores soliciten documentos específicos o más documentos de los que sean necesarios por motivos de la ciudadanía, el estatus migratorio o la nacionalidad de origen de un trabajador. Los empleadores deben permitir que sus trabajadores presenten cualquier documentación aceptable que dichos trabajadores quieran y no pueden rechazar documentación válida que parece ser genuina.
El acuerdo requiere que Destin Wings pague una sanción civil a los Estados Unidos, efectúe pagos retroactivos a la trabajadora que se había quejado al Departamento, capacite su personal en cuanto a la disposición antidiscriminatoria de la INA y que se someta a la supervisión del Departamento durante un período de tres años.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación con base en el estatus de ciudadanía y la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, las prácticas documentales injustas, las represalias y la intimidación.
Hay información disponible en el sitio web de la IER sobre cómo los empleadores pueden evitar la discriminación a la hora de verificar el permiso para trabajar. Aprenda más sobre cómo la IER protege los derechos de los trabajadores en este video. Para más información sobre las protecciones que ofrece la INA contra la discriminación en el empleo al amparo de las leyes migratorias, 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); inscríbase a un seminario en línea gratuito; envíe en correo electrónico a [email protected]; o visite las páginas web de la IER en inglés y español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Aquellos aspirantes o empleados que creen haber sido sometidos a: discriminación por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; discriminación en el proceso de la verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) con base en su ciudadanía, estatus migratorio o nacionalidad de origen; o represalias pueden presentar una denuncia o llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Texas Man Pleads Guilty to Hate Crime and Arson for Setting Fire to SynagogueRead the Press Release
A Texas man pleaded guilty today to a hate crime and arson in connection with a fire he set at the Congregation Beth Israel synagogue in Austin, Texas, on Oct. 31, 2021.
According to court documents and admissions made during the plea hearing, three days before the arson, on Oct. 28, 2021, Franklin Sechriest of San Marcos, Texas, drove to the synagogue’s parking lot outside its sanctuary. According to journals recovered from Sechriest, he went there to “scout out a target.” Sechriest admitted that he targeted the synagogue because of his hatred of Jews, and his journals were replete with virulent antisemitic statements and views. Sechriest also possessed several decals and stickers expressing antisemitic messages.
The night of the arson, Sechriest drove to the synagogue and was seen on surveillance video carrying a five-gallon container and toilet paper toward the synagogue’s sanctuary. Moments later, multiple surveillance videos captured the glow of a fire from the direction of the sanctuary. A security camera captured Sechriest jogging away from the direction of the fire and toward the open driver’s side door of a vehicle. A concerned citizen reported the fire, and the Austin Fire Department responded quickly to extinguish it. In Sechriest’s journal, in an entry dated Oct. 31, 2021, he wrote “I set a synagogue on fire.” In the days following the arson, Sechriest’s journal noted that he was actively monitoring media reports to track the progress of the investigation into the arson.
“Antisemitism has no place in our society, and hate-fueled violence will not be tolerated,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “By targeting a house of worship, the defendant attempted to intimidate and disrupt the Jewish community. The Department of Justice is committed to aggressively prosecuting antisemitic violence and will continue to hold accountable the people responsible for these deplorable incidents.”
“These hate-filled crimes not only caused damage to a Jewish place of worship, but they were intended to intimidate and undermine the well-being of the entire Jewish community,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Antisemitic violence and violence against any person or group on account of their religion will not be tolerated. My office will remain vigilant in bringing to justice criminals who engage in hate crimes.”
“One of the FBI’s highest priorities is to protect the civil rights of all Americans,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Field Office. “Hate crimes such as this one devastate and terrorize communities. The FBI remains steadfast and committed to working with our partners to prevent violent incidents like this one, which was motivated by bias and hate. We also urge the public to report any suspected hate crimes to the FBI and local law enforcement.”
The sentencing is set for June 23. Sechriest faces a maximum sentence of 20 years in prison and a $250,000 fine.
Assistant Attorney General Clarke, U.S. Attorney Esparza and Special Agent in Charge Oliver made the announcement.
The FBI and Austin Fire Department investigated the case.
Assistant U.S. Attorney Matthew Devlin for the Western District of Texas and Trial Attorney Andrew Manns of the Civil Rights Division’s Criminal Section are prosecuting the case.
Statement from Attorney General Merrick B. GarlandRead the Press Release
The Justice Department tonight issued the following statement from Attorney General Merrick B. Garland following the district court decisions in Alliance for Hippocratic Medicine v. FDA and Washington et al. v. FDA:
“The Justice Department strongly disagrees with the decision of the District Court for the Northern District of Texas in Alliance for Hippocratic Medicine v. FDA and will be appealing the court’s decision and seeking a stay pending appeal. Today’s decision overturns the FDA’s expert judgment, rendered over two decades ago, that mifepristone is safe and effective. The Department will continue to defend the FDA’s decision.
Separately, the Justice Department is reviewing the decision of the District Court for the Eastern District of Washington in Washington et al. v. FDA.
The Department is committed to protecting Americans’ access to legal reproductive care.”
North Carolina Pharmacy Agrees to Resolve False Claims Act AllegationsRead the Press Release
MedCare Clinic & Pharmacy, LLC (MedCare), located in Indian Trail, North Carolina, has agreed to pay $213,677 to resolve allegations that it violated the False Claims Act by knowingly billing federal health care programs for medications that were never dispensed.
The United States alleged that, from Jan. 1, 2016, through Dec. 31, 2019, MedCare billed both Medicare Part D and North Carolina Medicaid for 200 prescription medications that MedCare never distributed to beneficiaries. According to the government’s allegations, inventory records showed that MedCare did not buy enough of these medications to fill all of the prescriptions billed to these health care programs.
“Pharmacies may bill only for medications that they actually sell,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Our office will continue to pursue entities that knowingly and unjustly enrich themselves at the taxpayers’ expense.”
“When pharmacies bill government programs for prescriptions that are not disbursed to patients, taxpayer dollars are wasted and finite resources are diverted from beneficiaries in need,” said the U.S. Attorney Dena J. King for the Western District of North Carolina. “Our office will continue to work with our state and federal partners to investigate and hold accountable those who seek to profit from fraud on federal health care programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by former MedCare employees Brittanie Henry and Zilphia Adcock. Under those provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. Henry and Adcock will receive $53,419.43 as their share of the settlement. The qui tam case is captioned U.S. ex rel. Henry v. Pharmacy Holdings, et al., No. 3:20-cv-61 (W.D.N.C.).
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 Western District of North Carolina, with assistance from the Medicaid Investigations Division of the North Carolina Attorney General’s Office, and the Department of Health and Human Services Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Senior Trial Counsel Jennifer Cihon of the Civil Division, Assistant U.S. Attorney Caroline McLean and Investigator Cathleen Hollowell for the Western District of North Carolina investigated the case.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Los Angeles Businessman, Utah Fuel Plant Operators and Employees Sentenced to Prison for Billion-Dollar Biofuel Tax Fraud SchemeRead the Press Release
Five individuals were sentenced this week to prison for their roles in a $1 billion biofuel tax conspiracy: Lev Aslan Dermen, aka Levon Termendzhyan, 56, was sentenced to 40 years; Jacob Kingston, 46, was sentenced to 18 years; Isaiah Kingston, 42, was sentenced to 12 years; Rachel Kingston, 67, was sentenced to seven years; and Sally Kingston, 45, was sentenced to six years.
According to court documents and testimony from Dermen’s 2020 trial, from 2010 to 2018, Dermen conspired with Jacob and Isaiah Kingston, their mother, Rachel Kingston, Jacob Kingston’s wife, Sally Kingston, and others, to fraudulently claim more than $1 billion in refundable renewable fuel tax credits. The IRS ultimately paid out more than $511 million in credits to Washakie Renewable Energy (“Washakie”), a Utah biodiesel company owned by Jacob and Isaiah Kingston. The Kingstons distributed the fraud proceeds among themselves and Dermen.
Dermen was found guilty after a seven-week jury trial of conspiracy to commit mail fraud, conspiracy to commit money laundering and money laundering. In addition to the prison sentence, U.S. District Judge Jill N. Parrish ordered Dermen to pay $442,615,520 in restitution to the IRS and imposed a money judgment of more than $181 million against him.
Jacob Kingston was ordered to pay $511 million in restitution to the IRS. The court also imposed a $338 million money judgment against him. Jacob Kingston was co-owner and CEO of Washakie. In July 2019, he pleaded guilty to conspiracy to commit mail fraud, filing false claims with the IRS, money laundering and conspiracy to commit the same, obstruction by concealing and destroying records and conspiracy to commit the same and witness tampering.
Isaiah Kingston was also ordered to pay $511 million in restitution to the IRS. Isaiah Kingston, Jacob Kingston’s brother, was co-owner and CFO of Washakie. In July 2019, he pleaded guilty to conspiracy to commit mail fraud, aiding and assisting in the filing of false partnership tax returns, money laundering and conspiracy to commit the same and obstruction by concealing and destroying records and conspiracy to commit the same.
Jacob and Isaiah Kingston both testified at Dermen’s trial in 2020.
Rachel Kingston was the “special projects manager” at Washakie and participated in the scheme by backdating documents and creating fake invoices to support the filing of the false claims. In July 2019, she pleaded guilty to conspiracy to commit mail fraud, money laundering and conspiracy to commit the same and obstruction by concealing and destroying records.
Sally Kingston also worked at Washakie and participated in the scheme by similarly backdating documents and creating fake invoices to support the filing of the false claims. In July 2019, she pleaded guilty to conspiracy to commit mail fraud and conspiracy to commit money laundering.
The conspiracy began in 2010 and continued through 2018 and involved multiple fraudulent schemes. One involved purchasing biodiesel from the East Coast of the United States (which had been produced by others who had already claimed the renewable fuel tax credit) and exporting it to foreign countries, including Panama, then doctoring transport documents to disguise and import the biodiesel as “feedstock.” Washakie used this false paperwork to claim it had produced biodiesel from the feedstock to support its filing of fraudulent claims for IRS biofuel tax credits. Washakie also fraudulently obtained millions of EPA renewable identification numbers that were then sold for approximately $65 million. Later, Dermen and the Kingstons conspired to purchase millions of gallons of biodiesel and rotate it though the U.S. shipping system to create the appearance that qualifying fuel was being produced and sold by Washakie. Washakie applied for and was paid by the IRS over $300 million for its claimed 2013 production and over $164 million for its claimed 2014 production. Evidence at Dermen’s trial showed that, to further create the appearance of legitimate business transactions, Dermen and the Kingstons schemed to cycle their and other co-conspirators’ fraud proceeds in more than $3 billion in financial transactions through multiple bank accounts.
Throughout the scheme, Dermen falsely assured Jacob Kingston that Kingston and his family would be protected by Dermen’s “umbrella” of corrupt law enforcement and immune from criminal prosecution. In exchange, Jacob and Isaiah Kingston transferred over $134 million in fraudulent proceeds to companies in Turkey and Luxembourg that were subsequently laundered internationally and through the U.S. financial system.
Money from the fraudulent claims were distributed to Dermen and the Kingstons and used to make lavish purchases in the United States, Turkey, and Belize. Dermen’s associates in Turkey bought and rebuilt a 150-foot yacht named “Queen Anne.” The Queen Anne was seized by the government in Beirut, Lebanon in 2021, and then sold in Cyprus for $10.1 million. Dermen also caused Jacob Kingston to send more than $700,000 on behalf of Dermen to purchase land in Belize for a planned casino, for which the government is seeking forfeiture. The government is also seeking the forfeiture of other assets in Turkey related to the fraud proceeds sent there. Jacob and Isaiah Kingston sent more than $21 million in fraud proceeds to SBK Holdings USA, Inc., Dermen’s California-based company. Jacob Kingston used $1.8 million of the fraud proceeds to buy a 2010 Bugatti Veyron for Dermen as a “gift,” and Dermen gifted a chrome Lamborghini and a gold Ferrari to Jacob Kingston. Dermen and Jacob Kingston also laundered $3 million through Dermen’s company, NOIL Energy Group, to purchase a mansion in Sandy, Utah for Jacob and Sally Kingston.
The Kingston defendants sent over $35 million of their share of the fraud proceeds to their extended family and companies they owned.
Dermen also laundered $3.5 million through SBK Holdings USA, Inc., to purchase a mansion in Huntington Beach, California. The government now seeks forfeiture of this residence as well as a couple dozen other parcels of real property that were purchased with the Kingstons’ share of the proceeds.
“The significant sentences imposed by the court reflect the breathtaking scope of the defendants’ nearly decade-long tax fraud scheme – one of the largest ever,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Dermen and members of the Kingston family cost law-abiding taxpayers more than $500 million and attempted to steal double that. They also sought to cover their tracks by cycling billions-of-dollars in transactions through the banking system and using fuel purchases and oil tankers to give the illusion their plant was actually producing and selling biodiesel fuel eligible for IRS credits. Tax Division prosecutors and IRS-CI Special Agents not only unraveled this scheme – they uncovered, traced and recovered millions in proceeds secreted in Turkey, the United States and elsewhere.”
“The U.S. Attorney’s Office for the District of Utah thanks the Justice Department’s Tax Division and IRS investigators for their tireless efforts into shutting down this large-scale scheme,” said U.S. Attorney Trina A. Higgins for the District of Utah. “However, the work in this case is not over. Going forward, our office and the Tax Division will continue to work together to seek forfeiture of assets connected to this massive fraud scheme to recoup the losses it caused to the United States.”
IRS-Criminal Investigation, the Environmental Protection Agency-Criminal Investigation Division (EPA-CID), and the Defense Criminal Investigative Service (DCIS) of the Department of Defense Office of the Inspector General investigated the case.
“Today brings to a close the final step in the prosecution of these five defendants,” said Special Agent in Charge Albert Childress of the IRS Phoenix Field Office. “This case has been one of unprecedented fraud against the United States and its citizens and is one of the most egregious examples of tax fraud in U.S. history. These defendants not only participated in a scheme to steal over $500 million from the United States, but also went to great lengths to launder and hide their fraud proceeds. In addition, certain of the defendants even tried to conceal their fraudulent conduct by way of attempted witness threats and intimidation. After the last of the sentencings today, the government has made a statement that there will be severe consequences for fraud. Despite your efforts to launder your money, or any attempts to cover your crimes, there is always a trail which our financial investigators can follow, and justice will be done.”
“The defendants sought to illegally and fraudulently profit from a program that was designed to help reduce greenhouse gas emissions,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “This case sends a clear message that EPA and our law enforcement partners will aggressively prosecute these crimes and violators will pay a heavy price.”
Acting Deputy Assistant Attorney General Goldberg also thanked the Justice Department’s Office of International Affairs, as well as law enforcement partners in the Grand Duchy of Luxembourg, Austria, Belize, Ireland, Lebanon and Cyprus for their assistance in the case.
Senior Litigation Counsel John E. Sullivan and Trial Attorney Richard M. Rolwing of the Justice Department’s Tax Division, along with Assistant U.S. Attorney Leslie Goemaat for the District of Columbia, formerly of the Tax Division, prosecuted the case. Senior Policy Advisor Darrin L. McCullough of the Justice Department’s Money Laundering and Asset Recovery Section assisted with the extensive forfeiture proceedings related to the prosecution. Several Assistant U.S. Attorneys for the District of Utah assisted in the forfeiture proceedings.
Justice Department and FTC Obtain Settlement to Stop Deceptive Marketing Practices Involving the Sale of Funeral Goods and ServicesRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today announced that the U.S. District Court for the Southern District of Florida entered an order that requires Legacy Cremation Services, LLC, Funeral & Cremation Group of North America, LLC, and Anthony Joseph Damiano to pay $275,000 in civil penalties and to be subject to injunctive relief requiring them to comply with the FTC Act and the FTC’s Trade Regulation Rule Concerning Funeral Industry Practices (Funeral Rule). The FTC Act prohibits unfair and deceptive conduct and false advertising. The Funeral Rule prohibits providing consumers with inaccurate price information and requires certain disclosures to consumers regarding pricing for funeral-related goods.
The stipulated order settles the government’s allegations that Legacy Cremation Services, LLC, Funeral & Cremation Group of North America, LLC, and Anthony Joseph Damiano violated the FTC Act and Funeral Rule. The government’s complaint alleges that defendants serve as brokers between consumers and third-party funeral and cremation providers that offer funeral services, and that defendants have misled consumers about the locations where funeral services will be provided, as well as the ultimate costs of such services. The complaint also alleges that when consumers objected to these pricing practices, defendants refused to provide consumers with the remains of their loved ones until they paid. Under the settlement reached by the parties, defendants agreed not to engage in these practices. They also specifically agreed to clearly and conspicuously include on their websites the actual physical locations of the service providers and a link to their general price lists. Before accepting payment from any consumer, defendants agreed to provide an itemized, written statement of all prices and the total cost of services. defendants also agreed that their obligation to provide accurate information about their offerings and prices extends to consumers who inquire by telephone or electronic means.
“The Department of Justice is committed to protecting consumers from deceptive sales practices — particularly when consumers are in vulnerable circumstances, such as when a loved one passes” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “This resolution serves as a warning that the Department of Justice will not permit companies and individuals to profit from consumers’ grief by engaging in unlawful and deceptive marketing practices when offering funeral arrangements.”
“Lying to consumers about critical information including price and location of services when they are dealing with the loss of a loved one is outrageous and illegal,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Our actions in this case show the FTC’s commitment to enforcing the Funeral Rule to protect consumers and honest funeral homes.”
Trial Attorneys Wandaly Fernández García and Katherine Ho and Assistant Director Lisa K. Hsiao of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James A. Weinkle for the Southern District of Florida handled the matter. Rebecca Plett and Thomas Harris represent the FTC.
Justice Department Resolves Suit Against Virginia Beach Towing Company for Illegally Auctioning Off Servicemembers’ VehiclesRead the Press Release
The Justice Department has entered into a consent order requiring Steve’s Towing Inc. in Virginia Beach, Virginia, to pay $90,000 to settle a complaint alleging that the company violated the Servicemembers Civil Relief Act (SCRA). The complaint, which was filed on April 15, 2022, alleges that Steve’s Towing failed to obtain court orders before auctioning off vehicles belonging to at least seven SCRA-protected servicemembers, including two vehicles belonging to a member of a Navy SEAL team who was deployed overseas. The complaint further alleges that the company engaged in a pattern or practice of violating the SCRA and had no policies, practices, or procedures in place to ensure SCRA compliance. Under the SCRA, a towing company must determine whether a vehicle in its possession belongs to a servicemember; if so, the towing company must obtain a court order prior to selling the vehicle.
“This case began with a member of a Navy SEAL team who returned home from an overseas deployment, only to find that a towing company had auctioned off two vehicles that he had parked at a military base,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This resolution will compensate all of the servicemembers whose vehicles were illegally taken from them while they were serving their country.”
“Servicemembers often rely heavily on their personal vehicles to commute to work and care for their families. A servicemember’s loss of a vehicle, therefore, can affect the military’s readiness,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “EDVA is dedicated to holding accountable businesses who do not uphold the right of servicemembers under the SCRA.”
The department launched its investigation after a Navy legal assistance attorney reported that Steve’s Towing Inc. had sold two vehicles belonging to a deployed Navy SEAL without first obtaining court orders. One of the vehicles was a unique Toyota Land Cruiser. Stored inside the SEAL Team member’s Land Cruiser was evidence of his military service in the form of a duffel bag of military uniforms and a Naval Special Warfare Development Group Sniper challenge coin.
Under the proposed consent order, which still must be approved by the court, Steve’s Towing will pay $67,500 to the seven SCRA-protected servicemembers referenced in the United States’ complaint, up to $12,500 to compensate additional SCRA-protected servicemembers whose vehicles Steve’s Towing may have sold without first obtaining court orders and a $10,000 civil penalty. Steve’s Towing will also be required to provide SCRA training to its employees and to develop new policies and procedures consistent with the SCRA.
Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at https://legalassistance.law.af.mil/. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, together with U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
Justice Department Files Complaint Against Manufacturer Alleging Delay in Reporting Dangerous Awning CoversRead the Press Release
The Justice Department and the Consumer Product Safety Commission (CPSC) jointly announced today the filing of a complaint against SunSetter Products LP (SunSetter), alleging that the company delayed reporting a hazardous defect involving protective vinyl covers for its retractable awnings.
SunSetter is a limited partnership based in Malden, Massachusetts, that manufactures motorized, retractable awnings for outdoor use. The complaint, filed in U.S. District Court for the District of Massachusetts, alleges that SunSetter knowingly failed to immediately report to the CPSC that when bungee tie-downs securing its protective awning covers were removed, the retractable awnings could spring open unexpectedly with enough force to strike consumers and cause them to fall and suffer death or serious injury. The complaint alleges that between 2012 and 2017, SunSetter received 14 reports of its motorized awnings springing open, which resulted in several injuries and one death. Despite notice of these incidents, the company did not report the problems with its awning covers to the CPSC until October 2017.
According to the complaint, the protective covers at issue were sold separately or given away as a promotional item with the company’s motorized awnings between June 1999 and January 2019. The covers were recalled in August 2019.
“Companies must report safety issues in consumer products immediately, as the law requires, to prevent unnecessary injury or death,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work closely with the CPSC to hold accountable manufacturers that put profits over the safety of consumers.”
“Prompt reporting of potentially dangerous defects in or problems with products is vital to impactful and immediate consumer protection. CPSC cannot do its job without strict compliance by industry. The defect in this matter, as alleged, can cause serious injury up to and including death,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “Manufacturers must be held accountable for failing to comply with this important obligation which jeopardizes the safety of consumers.”
“SunSetter knew for years that its product was hazardous, yet failed to tell CPSC as required by federal law,” said Chair Alex Hoehn-Saric of the CPSC. “It took a tragic death and numerous other injuries before they finally took action – which is unacceptable. When a company continues to sell dangerous products – knowing they can cause injuries and death – it must be held accountable.”
The Consumer Product Safety Act requires manufacturers, distributors, and retailers of consumer products to report “immediately” to the CPSC information that reasonably supports the conclusion that a product contains a defect which could create a substantial product hazard or creates an unreasonable risk of serious injury or death.
This matter is being handled by Senior Litigation Counsels Christina Parascandola and Claude Scott and Trial Attorney Nicole Frazer of the Justice Department’s Civil Division, Consumer Protection Branch and Assistant U.S. Attorney Erin Brizius for the District of Massachusetts, with the assistance of Harriet Kerwin and Renee H. McCune of the CPSC’s Office of the General Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government would be required to prove by a preponderance of the evidence.
Former Federal Correctional Officer Indicted for Sexual Abuse of an InmateRead the Press Release
A federal grand jury returned an indictment charging a former federal correctional officer with one count of sexual abuse of an individual in federal custody.
The indictment alleges that, between October 2021 and August 2022, Lenton Jerome Hatten, 54, of Tallahassee, Florida, engaged in sexual acts with an inmate while employed as a sports specialist for the Bureau of Prisons.
Hatten made his initial appearance in federal court this afternoon.
Trial for Hatten is set for June 5 at 8:15 a.m., at the U.S. Courthouse in Tallahassee before the Honorable Senior U.S. District Judge Robert L. Hinkle.
If convicted, Hatten faces a maximum sentence of 15 years in federal prison, five years to life on supervised release, and a maximum $250,000 fine.
U.S. Attorney Jason R. Coody for the Northern District of Florida made the announcement.
The FBI and the Justice Department’s Office of the Inspector General investigated the case.
Assistant U.S. Attorney James A. McCain for the Northern District of Florida is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Readout of Assistant Attorney General Kristen Clarke’s Trip to MemphisRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Memphis, Tennessee, on April 3 and 4 to continue the Civil Rights Division’s tour to engage with stakeholders in underserved communities and reaffirm the department’s commitment to protecting the civil rights of all Americans.
On Monday, Assistant Attorney General Clarke participated in a fireside chat with the Student Bar Association at the University of Memphis Law School. She discussed the Civil Rights Division’s efforts enforce federal civil and criminal civil rights laws and encouraged law students to consider careers in government service.
In the evening, Assistant Attorney General Clarke participated in a community conversation hosted by the Benjamin L. Hooks Institute for Social Change at the University of Memphis. Attendees included faith, community and student leaders, and local residents. She discussed the department’s recent efforts to address modern day redlining in Memphis, implement policing reform, and protect people from housing discrimination. She thanked attendees for their steadfast commitment to civil rights and pushing for change in their community.
On Tuesday, she participated in a fireside chat for several hundred 11th and 12th grade students at the Whitehaven High School in the Memphis-Shelby County School District. She discussed her journey as a civil rights attorney, encouraged the students to pursue careers in public service and addressed questions concerning the civil rights challenges facing young people today.
That afternoon, she visited the U.S. Attorney’s Office for the Western District of Tennessee where she met with U.S. Attorney Kevin Ritz, his leadership team and the attorneys and professional staff of the office. She thanked all staff members for their dedicated service and partnership in protecting civil rights.
During her trip, Assistant Attorney General Clarke also had several meetings with local Memphis officials, including State Representative G.A. Hardaway, Mayor Jim Strickland, Memphis Police Chief C.J. Davis and Shelby County District Attorney Steve Mulroy. In those discussions, she reinforced the Justice Department’s commitment to working with our local partners on civil rights issues.
To close her trip, Assistant Attorney General Clarke delivered remarks at the National Civil Rights Museum’s program commemorating the 55th Anniversary of the assassination of Dr. Martin Luther King, Jr. The museum is located at the former Lorraine Motel, the location where Dr. King was assassinated on April 4, 1968. The event was attended by several civil rights leaders, including Rev. Dr. Otis Moss III, community leaders and elected officials from across the country. Read her full remarks here.
In the upcoming weeks, Assistant Attorney General Clarke will travel to Arkansas, Mississippi and South Carolina to continue meeting with stakeholders in underserved communities.
Photo Credit: Hooks Institute Assistant Attorney General Clarke (middle) with U.S. Attorney Kevin Ritz (left) and Hooks Institute Executive Director Daphene McFerren (right). Assistant Attorney General Clarke speaking at the National Civil Rights Museum. Assistant Attorney General Clarke (front middle) with U.S. Attorney Kevin Ritz (front left) and staff from the U.S. Attorney’s Office for the Western District of Tennessee.National Police Agency of Japan visits INTERPOL WashingtonRead the Press Release
WASHINGTON - Yesterday, a delegation from the National Police Agency (NPA) of Japan met with INTERPOL Washington Director Michael A. Hughes to expand partnership opportunities between the two law enforcement agencies.
“This historic visit is a reflection of the strength of our relationship with our Japanese counterparts," said Dir. Hughes. "By working together, we can leverage our collective expertise, resources, and networks to better identify, prevent, and respond to global threats. We look forward to continuing our work together to protect our communities and prevent crime, anywhere it may occur."
During the meeting, the delegation from Japan and Dir. Hughes discussed issues of mutual interest, including collaborative strategies against transnational organized crime and cybercrime. They also explored ways to strengthen information sharing and global law enforcement cooperation.
A component of the U.S. Department of Justice co-managed by the U.S. Department of Homeland Security, INTERPOL Washington—the U.S. National Central Bureau (USNCB)—is the designated U.S. representative to INTERPOL. It serves as the national point of contact and coordination for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, tribal, and territorial law enforcement agencies.
Marketing Firm Owner Charged with Tax Crimes and Bank FraudRead the Press Release
A federal grand jury in Greenbelt, Maryland, returned an indictment unsealed today charging a Maryland businessman with filing false income tax returns, theft of government funds, tax evasion, willful failure to file income tax returns and bank fraud.
According to the indictment, Orin Wayne Solomon of Glenn Dale, filed at least 15 false income tax returns between 2017 and 2022 on behalf of himself, his business and two trusts that he controlled. On these returns, Solomon allegedly sought nearly $65 million in refunds that he and his entities were not entitled to receive. After receiving one allegedly false trust tax return, the IRS issued a tax refund check for more than $10 million. Solomon allegedly used those funds to pay for cars, a house, silver coins and insurance policies.
The indictment further alleges that Solomon attempted to evade his income tax liabilities for numerous years between 2009 and 2021 by, among other means, using funds from a business bank account to pay personal expenses for himself, his wife and his children, registering a vehicle in the name of a trust and transferring his personal residence to another trust. The personal expenses that Solomon allegedly paid from his business bank account included tuition for his children, personal training sessions, medical and dental expenses and expenses relating to his personal residence and a property that his wife owned. From 2017 through 2021, Solomon also allegedly failed to file individual income tax returns and pay taxes on income generated by his business, Anjacor Marketing Inc. (Anjacor).
The indictment also charges that in 2020, Solomon applied for a loan on behalf of Anjacor under the Small Business Administration’s Paycheck Protection Program (PPP), an initiative authorized by Congress to provide financial assistance to businesses impacted by the COVID-19 pandemic. As part of that application, Solomon allegedly provided a bank with false information about his company’s payroll, fraudulently causing the bank to extend a $229,012 PPP loan.
If convicted, Solomon faces a maximum penalty of 30 years in prison on the bank fraud charge, 10 years in prison on the theft of government funds charge, five years in prison on each of the tax evasion charges, three years in prison on each of the false return charges, and one year in prison on each of the failure to file charges. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Melissa S. Siskind and Jeffrey A. McLellan of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Reaches Multimillion Dollar Civil Settlement in Principle in Sutherland Springs Mass ShootingRead the Press Release
The Justice Department announced today an agreement in principle to settle the civil cases arising out of the tragic November 2017 mass shooting at the First Baptist Church of Sutherland Springs, Texas, that killed 26 worshippers and injured 22 others.
These tentative settlements will resolve claims by more than 75 plaintiffs arising out of the shooting. Plaintiffs’ claims alleged that the Air Force was negligent when it failed to transmit to the National Instant Criminal Background Check System (NICS) information about the shooter that would have prevented him from purchasing guns from a federally licensed firearms dealer. A federal district court in Texas concluded that the United States was liable for damages caused by the shooting. This tentative settlement would resolve the pending appeals.
The agreement in principle would settle all claims for a total of $144.5 million. The settlement agreement has been approved, subject to the plaintiffs’ securing the required court approvals. Under applicable law, a court must approve some aspects of the settlements.
“No words or amount of money can diminish the immense tragedy of the mass shooting in Sutherland Springs,” said Associate Attorney General Vanita Gupta. “Today’s announcement brings the litigation to a close, ending a painful chapter for the victims of this unthinkable crime.”
The NICS plays a critical role in combatting gun violence, and the federal government is always striving to improve the functioning of that system. The department continues to work actively to combat gun violence as part of its comprehensive violent crime reduction strategy.
Justice Department Continues Efforts to Stop Fraudulent Tax PreparersRead the Press Release
The Department of Justice urges taxpayers to choose their return preparers wisely as the April 18 federal tax filing deadline approaches. Unscrupulous preparers who include errors or false information on a tax return could leave a taxpayer open to liability for unpaid taxes, penalties and interest.
“Taxpayers should choose their return preparer wisely and remain vigilant against unscrupulous preparers, who often present clients with refunds that are too good to be true,” said Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “If your preparer asks you to sign a blank return, refuses to sign your return as your return preparer, or is charging you a fee based on the size of your refund, consult the IRS’s website and tips to make sure you are not exposing yourself to trouble.”
“Tax preparers who falsify deductions, or otherwise seek to fraudulently inflate client refunds, face consequences,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “As the Tax Division’s work over the past year demonstrates, our prosecutors have the expertise and resources to identify crooked return preparers and hold them accountable for their criminal conduct.”
The Tax Division works with U.S. Attorneys’ Offices around the country to bring civil and criminal actions against dishonest tax preparers. The division seeks civil injunctions to stop ongoing fraud, civil penalties or disgorgement of ill-gotten proceeds, and criminal penalties. The department’s message to those who prepare fraudulent returns is that they will face serious and lasting consequences.
Criminal convictions against fraudulent preparers obtained by the Tax Division over the last year include:
- In January 2023, Betty Hawkins and Phyllis Ricks, two North Carolina tax preparers, were sentenced to 24 months and 36 months in prison, respectively, for their role in conspiring to file false income tax returns on behalf of clients of the tax return preparation business where they worked. They were ordered to pay approximately $5.2 million in restitution.
- In December 2022, Eunice Salley, a Chicago tax preparer, was sentenced to seven years in prison for filing false income tax returns on behalf of her tax preparation clients seeking more than $1 million in fraudulent refunds. She also failed to report the income received from cashing dozens of pension checks sent to her deceased grandmother. Salley was also ordered to pay $558,396 in restitution.
- In December 2022, King Isaac Umoren, a Las Vegas tax preparer, was sentenced to 13 years and three months for, among other things, preparing and filing with the IRS tax returns for clients that included false deductions and fictitious businesses in an effort to generate larger refunds than the clients were entitled to receive. He was also ordered to pay $9,699,887 in restitution to the United States and other victims of his fraud.
- In August 2022, Guy Telfort, a Fort Lauderdale tax preparer, was sentenced to 13 months in prison for continuing to prepare and file tax returns with the IRS in violation of a federal court order barring him from doing so.
- In March 2022, Fred Pickett, Jr., a Florida tax preparer, was sentenced to 97 months in prison for preparing returns on behalf of clients claiming they owned fictitious businesses that lost tens of thousands of dollars each year. He was also ordered to pay approximately $169,639 in restitution.
Examples of civil injunctions obtained by the Tax Division over the last year include:
- On Jan. 24, 2023, a federal district court in the Southern District of Florida permanently barred Arnold Zio individually and doing business as Platinum Citizens Financial, LLC and FTP Tax Services, from preparing returns for others and from owning or operating a tax return preparation business in the future. The government alleged that Zio prepared tax returns claiming fabricated business income and expenses, as well as various false tax deductions. Additionally, the government alleged that Zio, without authorization, diverted customer refunds into his own bank account and failed to return COVID-19 stimulus funds that were improperly deposited into his account.
- On Oct. 21, 2022, a federal district court in the Eastern District of New York permanently barred Maria Cuervo and her business, Danays Enterprises & Travel, Inc., from operating as tax return preparers. The order required Cuervo to disgorge to the United States $150,000.00 in fees that the government alleged she received as ill-gotten gains for preparing federal tax returns that make grossly incompetent, negligent, reckless, or fraudulent claims.
- On May 12, 2022, a federal district court in the Eastern District of Texas entered an order permanently barring Michelle Denise Johnston from operating a tax return preparation business and preparing federal income tax returns for others. The government’s complaint alleged that Johnston prepared and filed tax returns that understated her customers’ federal income tax liabilities and further alleged that Johnston engaged in a refund-skimming scheme whereby she deducted unauthorized “fees” from inflated refunds unbeknownst to her customers.
The Tax Division has also sought to strip fraudulent preparers of ill-gotten gains and to hold in contempt those who attempt to flout court-ordered restraints on further fraudulent activity. Over the last year, the division has brought these cases to court, including:
- On July 4, 2022, a federal court in the Southern District of Florida found tax-preparer defendants Marcus Alty and Jeanait Mathurin in contempt for violating an injunction that bars them from preparing returns for others. The court also held in contempt J and M Tax Services, LLC, a return preparation business that Alty and Mathurin created post-injunction to continue their return preparation business. The court ordered Alty, Mathurin, and J and M Tax Services to disgorge nearly $650,000 in ill-gotten gains and to pay $18,000 in costs to the government. The court also sanctioned Alty, Mathurin, and J and M Tax Services of the government’s attorneys’ fees of over $14,000.
- On Apr. 12, 2022, a federal court in the Eastern District of Michigan required Laron Stroud and Raheen Stroud to pay over $120,000 in civil contempt sanctions for their violations of a 2016 permanent injunction prohibiting them from preparing tax returns or assisting in or directing the preparation or filing of tax returns. The amount of the sanctions represents the total tax preparation fees received by the Strouds (and those they assisted) to file returns after the date of the injunction.
- On Sept. 29, 2022, a federal court in the Southern District of Florida required Nate Dameus to pay $213,500 of ill-gotten fees for violating the court’s September 2021 order that permanently barred Dameus from acting as a return preparer. The court’s order also requires Dameus to reimburse the government approximately $10,000 for the costs incurred to investigate his violations and enforce the injunction.
Shady tax return preparers remain a concern of the IRS, which recently warned taxpayers about unscrupulous tax return preparers as part of the IRS’s Dirty Dozen series. The Tax Division reminds taxpayers that the IRS has information, tips, and reminders on its site for choosing a tax preparer carefully (Choosing a Tax Professional and How to Choose a Tax Return Preparer) and has launched a free directory of credentialed federal tax preparers. The IRS also offers taxpayers tips to protect their identities and wallets when filing their taxes.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $73,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Tax Division has obtained civil injunctions and criminal convictions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Former City Treasurer in Alaska Indicted for Wire Fraud, Money Laundering, and Tax EvasionRead the Press Release
A federal grand jury in Anchorage returned an indictment on March 21, 2023, charging an Alaska man with wire fraud, money laundering and tax evasion.
According to the indictment, from 2015 to 2022, Jess George Adams of Willow, Alaska, embezzled a total of more than $1.16 million from the City of Houston, Alaska, and from a Wasilla-based equipment company.
The indictment alleges that from 2015 through 2018, Adams was the Treasurer for the City of Houston, entrusted with bookkeeping responsibilities and administrative access to the City’s accounting records and software. Adams allegedly used this access to direct electronic transfers from the City’s bank account to a personal account in his name, maintained by Adams to hide the embezzled funds. It is further alleged that Adams used fictitious entries in the City’s accounting software to make it appear as though these payments were made for legitimate business expenses.
In October 2018, the City of Houston allegedly placed Adams on administrative leave, and he resigned his position in November 2018. A year later, Adams allegedly was employed as a bookkeeper by an equipment company, where he exercised control over the company’s accounting records and software. The indictment charges that, using this access, Adams directed electronic transfers from the company’s bank account to other personal accounts that Adams opened in his name to hide the embezzled money. To conceal his activity, Adams allegedly used fictitious entries in the company’s accounting software to make it appear as though these funds were transferred for the payment of legitimate business expenses.
Adams allegedly laundered the embezzled money he obtained from the equipment company by making several wire transfers from his personal bank account to other accounts, each at a value greater than $10,000.
The indictment further charges that in another attempt to conceal his embezzlement and evade the assessment of income taxes, Adams filed false individual income tax returns for tax years 2016 through 2021, which did not disclose the additional income he diverted to himself. According to the indictment, Adams was a former seasonal tax return preparer for a national tax advisory company.
Adams is scheduled to make his initial court appearance today before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska. If convicted, he faces a maximum penalty of 20 years in prison for each wire fraud count, 10 years in prison for each money laundering count, 5 years in prison for each tax evasion count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney S. Lane Tucker for the District of Alaska made the announcement.
IRS-Criminal Investigation is investigating the case with substantial assistance from the Alaska State Troopers.
Trial Attorney Boris Bourget of the Justice Department’s Tax Division and Assistant U.S. Attorney George Tran of the District of Alaska 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.
City of Chicago Held in Violation of Americans with Disabilities ActRead the Press Release
A federal judge in Chicago held the City of Chicago liable for violating the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act by failing to provide accessible pedestrian signals at signalized intersections throughout the city to those who are blind or have low vision.
In April of 2021, the Justice Department moved to intervene in a disability discrimination lawsuit that people with visual disabilities brought against the City under the ADA and the Rehabilitation Act. The United States’ complaint in intervention alleged that the city fails to provide people who are blind, have low vision or are deaf-blind with equal access to pedestrian signal information at intersections. Pedestrian signal information, such as a flashing “Walk/Don’t Walk” signal, indicates when it is safe to cross the street for sighted pedestrians.
Accessible pedestrian signals (APSs) are devices that provide pedestrians with safe-crossing information in a non-visual format, such as through audible tones, speech messages and vibrotactile surfaces. Since at least 2006, Chicago has recognized the need to install APSs for pedestrians with visual disabilities, specifically identifying the need for such installation in multiple city documents. Yet, while Chicago currently provides sighted pedestrians visual crossing signals at nearly 2,800 intersections, the United States’ suit alleged that — at the time it intervened — fewer than one percent of those were equipped with APSs for people who are blind or have low vision.
On March 31, U.S. District Judge Elaine E. Bucklo sided with the United States and the private plaintiffs in a decision on both sides’ motions for summary judgment, holding the city in violation of the ADA and Section 504 of the Rehabilitation Act. The court found that the city had provided APS at only a “miniscule portion of the whole,” and thus had failed “to provide ‘meaningful access’ to its network of existing facilities and to ensure that newly constructed signals are designed and constructed in such a manner as to be ‘readily accessible’ by blind individuals.”
“Federal law offers people with visual disabilities the promise of full participation in community life, and safely navigating city streets is a critical part of that,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue pushing for a remedy that fully addresses the discrimination faced by blind people in Chicago.”
“As previously stated, the U.S. Attorney’s Office took action in this case in order to ensure that Chicagoans with disabilities are provided equal access to city services, particularly services where the primary focus is on public safety,” said Acting U.S. Attorney Pasqual for the Northern District of Illinois. “Our office remains committed to standing up for the rights of all those who reside in and visit the City of Chicago and all other communities across the Northern District of Illinois. We look forward to working with the City of Chicago to identify an appropriate remedy for the future.”
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. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report.
Texas Laboratory Agrees to Pay $5.9 Million to Settle Allegations of Kickbacks to Third Party Marketers and Unnecessary Drug TestsRead the Press Release
Genotox Laboratories Ltd., of Austin, Texas, has agreed to pay at least $5.9 million to resolve False Claims Act allegations that it paid volume-based commissions to third party marketers in violation of the Anti-Kickback Statute and submitted claims to federal health care programs for unnecessary drug tests. In parallel proceedings, the U.S. Attorney’s Office for the Western District of Texas and Genotox entered into an eighteen-month Deferred Prosecution Agreement to resolve a criminal investigation regarding the same conduct.
“Laboratories are prohibited from paying kickbacks to third parties to arrange for laboratory orders,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable companies that violate the rules intended to protect the integrity and resources of federal health care programs.”
The settlement announced today resolves allegations that, from 2014 to 2020, Genotox paid kickbacks to independent contractor sales representatives and marketing firms to arrange for or recommend the ordering of Genotox’s laboratory testing, in violation of the Anti-Kickback Statute. As part of the settlement, Genotox admitted and accepted responsibility for paying independent contractor marketers, whom Genotox referred to as “1099” representatives, a percentage of the revenue Genotox received from billing Medicare, the Railroad Retirement Board (RRB), and TRICARE for laboratory testing orders facilitated or arranged for by the 1099 representatives.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded health care programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
In addition, the settlement resolves allegations that, from 2014 to 2022, Genotox submitted claims to Medicare, RRB, and TRICARE for laboratory tests that were not covered and/or not reasonable and necessary, including blanket orders and routine standing orders of drug testing for all patients in a provider’s practice. As part of the settlement, Genotox admitted and accepted responsibility for offering health care providers order forms known as “custom profiles” for each provider to pre-select the tests to order, which Genotox then performed and billed, for all or nearly all of the provider’s patients, generally at the highest reimbursement categories, such as definitive drug testing for 22 or more drug classes.
Under the settlement with the United States, Genotox has agreed to pay $5.9 million, plus additional amounts if certain financial contingencies occur. The settlement amount was based on the company’s ability to pay.
In connection with the settlement, Genotox entered into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The CIA requires, among other things, that Genotox maintain a compliance program, implement a risk assessment program, and hire an Independent Review Organization to review Medicare and Medicaid claims at Genotox.
“Kickbacks harm the integrity of federal programs and unnecessarily increase costs to taxpayers,” said U.S. Attorney Jill E. Steinberg for the Southern District of Georgia. “Patients should know that decisions concerning their health are based on their needs, not the profit margins of providers.”
“The Deferred Prosecution Agreement ensures that Genotox will live up to its compliance obligations,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My office is committed to the effort to root out fraud and abuse in the health care system.”
“Health care companies that engage in kickback schemes can undermine the public’s trust in medical institutions and the financial integrity of the programs billed,” said Special Agent in Charge Tamala E. Miles of HHS-OIG. “Working with our law enforcement partners, our agency will continue to investigate such allegations in order to detect and deter illicit activity targeting federal health care programs.”
“The Department of Defense (DOD) Office of Inspector General’s Defense Criminal Investigative Service (DCIS) is committed to rooting out fraud schemes that not only waste valuable taxpayer resources, but also impact mission readiness,” said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office. “DCIS, along with our law enforcement partners, will aggressively pursue and hold those accountable who undermine the integrity of DOD’s taxpayer funded health care program, known as TRICARE, which is intended for our service members, retirees, and their families.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Alex DiGiacomo, Genotox’s former billing manager. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. DiGiacomo v. Genotox Laboratories, Ltd., et al., No. 2:20-cv-97 (S.D. Ga.). As part of the settlement, DiGiacomo will receive approximately $1 million.
The civil 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 Southern District of Georgia, with assistance from HHS-OIG and DCIS.
The matter was handled by Fraud Section attorneys Douglas Rosenthal and Christopher Terranova and Assistant U.S. Attorney Bradford C. Patrick for the Southern District of Georgia. Assistant U.S. Attorneys G. Karthik Srinivasan and Alan Buie handled the criminal matter in the Western District of Texas.
The government’s pursuit of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
Except to the extent of the facts admitted by Genotox, the claims resolved by the settlement are allegations only and there has been no determination of liability.
Maryland Man Charged for Making a Threatening Phone Call to an LGBTQ Advocacy GroupRead the Press Release
A federal criminal complaint has been filed charging a Maryland man for using the telephone to threaten a group that advocates for LGBTQ individuals.
According to court documents, on the evening of March 28, the victim organization received a threatening voicemail from a phone number that investigators identified as belonging to Adam Michael Nettina, 34, of West Friendship, Maryland. The message referenced the March 27 mass shooting at a school in Nashville, Tennessee, involving multiple shooting fatalities, where the perpetrator was publicly identified as being transgender. During the call, numerous threats were made including, “…We’ll cut your throats. We’ll put a bullet in your head….You’re going to kill us? We’re going to kill you ten times more in full.”
Nettina had an initial appearance yesterday in U.S. District Court in Baltimore before U.S. Magistrate Judge Matthew J. Maddox.
If convicted, Nettina faces a maximum sentence of five years in federal prison for interstate communications with a threat to injure. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Erek L. Barron for the District of Maryland and Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office made the announcement.
The FBI Baltimore Field Office investigated the case.
Assistant U.S. Attorney Paul E. Budlow for the District of Maryland and Deputy Chief Bobbi Bernstein of the Civil Rights Division’s Criminal Section are prosecuting the case.
High-Ranking Member of the Sinaloa Cartel Extradited from Mexico to the United States to Face International Drug Trafficking and Firearm ChargesRead the Press Release
A Mexican national made his initial appearance in the U.S. District Court for the District of Columbia yesterday to face international drug trafficking and firearms charges.
According to court documents, between August 2009 and January 2016, Jorge Ivan Gastelum Avila, aka Cholo Ivan, 42, was a high-ranking member of the Sinaloa Cartel, an international drug trafficking organization that was headed by Joaquin Guzman Loera, aka El Chapo, and Ismael Zambada Garcia, aka El Mayo. The Sinaloa Cartel is a violent, transnational drug trafficking organization based in Mexico that engaged in the manufacture, distribution, and importation of ton quantities of cocaine and marijuana from Colombia, Ecuador, Venezuela, Peru, Panama, Costa Rica, and Honduras to Mexico and into the United States.
Court documents also allege that at the time of his arrest, Gastelum Avila was a lead sicario, or assassin, for the Sinaloa Cartel and worked closely with Guzman Loera. He allegedly operated as the “plaza boss” for the Mexican city of Guamúchil, Sinaloa, and in that role, he supervised at least 200 armed men and controlled the drug-trafficking activities in that city and the surrounding area.
In January 2016, Mexican authorities arrested Gastelum Avila and Guzman Loera together in Los Mochis, Sinaloa, Mexico, as they attempted to flee arrest. In December 2018, a grand jury returned an indictment against Gastelum Avila. The United States requested his provisional arrest in February 2020 and Mexican authorities arrested Gastelum Avila based on that request in March 2020. Gastelum Avila remained detained in Mexico pending his extradition. He was extradited from Mexico to the United States on April 1.
Gastelum Avila is charged with 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. He is also charged with knowingly and intentionally using, carrying, brandishing, and discharging a firearm, including a destructive device, during and in relation to a drug trafficking crime. Gastelum Avila faces a maximum penalty of life in prison for the drug conspiracy charge and a mandatory consecutive sentence of 30 years for the firearms offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Guzman Loera was extradited to the United States in January 2017. In July 2019, he was sentenced to life in prison for being a principal leader of a continuing criminal enterprise, narcotics trafficking, using a firearm in furtherance of his drug crimes, and participating in a money laundering conspiracy.
This case is supported by the Organized Crime Drug Enforcement Task Force (OCDETF).
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Acting Executive Associate Director Steve K. Francis of Homeland Security Investigations (HSI), 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 HSI Nogales Office and the FBI Washington Field Office are investigating this case.
Trial Attorney Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section is prosecuting the case. The Justice Department’s Office of International Affairs provided valuable assistance with securing the arrest and extradition of Gastelum Avila. The Criminal Division’s 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.
Former San Diego Police Officer and Three Co-Defendants Plead Guilty to Multiple Crimes Stemming from Years-Long Operation of Illicit Massage BusinessesRead the Press Release
A former San Diego Police Department vice detective and his co-defendants each pleaded guilty today in connection with their operation of five illicit massage businesses in California and Arizona that profited for years by exploiting women to engage in commercial sexual services under the guise of offering therapeutic massage services.
According to court documents, Peter Griffin, 78, who left the department in 2002, Kyung Sook Hernandez, 58, Yu Hong Tan, 56, and Yoo Jin Ott, 46, owned and operated Genie Oriental Spa, Felicita Spa, Blue Green Spa, Maple Spa and Massage W Spa, located in the greater San Diego area and in Tempe, Arizona, between 2013 and August 2022. The criminal scheme included incorporating their businesses with state agencies, managing the finances of the businesses, advertising commercial sexual services online, recruiting and employing women to perform commercial sexual services in the businesses and benefiting financially from the illegal enterprises. The defendants leased multiple commercial properties as storefronts, leased and bought residential properties to use as housing for employees, and secured credit card processing equipment to operate the illicit massage businesses.
Griffin previously worked as a detective with the Vice Operations Unit of the San Diego Police Department, a unit tasked with dismantling the very businesses he operated and promoted for personal profit. Throughout the course of the scheme, Griffin used the experience and skills he acquired through his work as a vice detective – and in at least one instance, his badge – to help the businesses evade law enforcement, thwart regulatory inspections, investigations, and any official action against the businesses, conceal evidence, and maintain a façade of legitimacy. On another occasion, Griffin told an employee that he was a former police officer and instructed her not to “open [her] mouth” about her employment at the illicit massage business. Griffin also used resources he had access to by virtue of his private investigator license to obtain information on customers and employees on behalf of the illicit massage businesses. During the scheme, the defendants encouraged and expected employees to perform commercial sexual services inside the businesses and relied on Griffin’s law enforcement background to help conceal the criminal conduct. When one employee initially refused to perform commercial sexual services, one of the defendants instructed her to “leave [her] morals in China” in order to “make the customers happy.”
“The defendant – a former vice detective who once took an oath to uphold our laws – knew more than most that illicit massage businesses cruelly profit by exploiting women for commercial sex,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are committed to prosecuting the proprietors of these illegal businesses, and to shining a light on those places where sexual exploitation and trafficking persist.”
“Peter Griffin misused the expertise acquired during his time as a vice detective and abused the respect that came with his badge – all to ensure that his ‘massage parlors’ operated under the radar for his personal financial gain,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The guilty pleas of Griffin and his co-defendants underscore the Justice Department’s commitment to holding accountable those who profit from crime, particularly crimes that involve the exploitation of vulnerable populations and the abuse of trust that communities place in law enforcement. This plea would not have been possible without the innovative and collaborative efforts of our partners in federal and local law enforcement, the Human Trafficking Prosecution Unit, and the U.S. Attorney’s Office for the Southern District of California.”
“This criminal scheme involved illicit businesses that exploited a vulnerable population,” said U.S. Attorney Randy Grossman for the Southern District of California. “We are committed to prosecuting the offenses that impact not only the employees of these illicit businesses, but the safety of the communities in which they operate.”
“Griffin betrayed the pledge he took to uphold our laws and to protect the members of our community through his egregious misuse of power and knowledge,” said Acting Special Agent in Charge John Kim of the FBI San Diego Field Office. “We appreciate the collaboration of our federal, state, and local partners to ensure that justice is served to Griffin and his co-conspirators. There is no place in our community for those who negligently prioritize money over people.”
Griffin pleaded guilty to conspiring to violate the Interstate Travel in Aid of Racketeering Act (ITAR) by using facilities in interstate commerce to promote and facilitate businesses involving prostitution, and to wire fraud conspiracy and money laundering, for which he faces a maximum penalty of 30 years in prison. Hernandez, Tan and Ott, who managed the different illicit massage businesses in Griffin’s network, each pleaded guilty to misprision of a felony and face maximum penalties of three years in prison.
Assistant Attorney General Clarke, Assistant Attorney General Polite, U.S. Attorney Grossman and Special Agent in Charge Plantz made the announcement.
The investigation was led by Homeland Security Investigations, IRS Criminal Investigation, and the San Diego Human Trafficking Task Force, a regional, multi-agency effort led by the California Department of Justice dedicated to supporting survivors and holding traffickers accountable. The task force is comprised of numerous federal, state and local agencies, as well as the Southwest Border High Intensity Drug Trafficking Area program. The investigation was also supported by the FBI, the San Diego Police Department, the San Diego Sheriff’s Office, the Escondido Police Department, the San Diego District Attorney’s Office and the Tempe, Arizona, Police Department.
Assistant U.S. Attorney Jill Streja for the Southern District of California, Trial Attorney Caylee Campbell of the Money Laundering and Asset Recovery Section of the Criminal Division and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.
Final Rule Issued for Home Confinement Under the Coronavirus Aid, Relief and Economic Security (CARES) ActRead the Press Release
The Department of Justice has issued a final rule granting discretion to the Director of the Bureau of Prisons to allow individuals placed in home confinement under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to remain in home confinement after the expiration of the covered emergency period.
“The Justice Department is committed to protecting the safety of our communities and continuing to support the successful transition of those on home confinement back to society,” said Attorney General Merrick. B. Garland. “This final rule makes clear that the Director of the Bureau of Prisons has the discretion to ensure that those who have made rehabilitative progress and complied with the conditions of home confinement are not unnecessarily returned to prison.”
The final rule provides the Bureau the discretion and flexibility to impose proportional and escalating sanctions for individuals who commit infractions, including returning them to prison. It also allows the Bureau to move individuals into Residential Reentry Centers when needed, including instances when home residence is no longer viable or due to either minor accountability issues or non-significant disciplinary issues.
Consistent with the final rule, the Director of the Bureau of Prisons today also instructed that any individual placed on home confinement under the CARES Act will remain on home confinement under the CARES Act for the remainder of their sentence, provided that they are compliant with the rules and regulations of community placement.
The final rule comes after the Attorney General issued a statement directing the Department to engage in a rulemaking process to ensure that individuals placed in home confinement under the CARES Act are not unnecessarily returned to prison. The proposed rule was published on June 21, 2022, and the comment deadline concluded on July 21, 2022. Prior to the publication of the proposed rule, the Office of Legal Counsel issued an opinion interpreting the CARES Act to give the Bureau of Prisons discretion to permit individuals on home confinement to remain there after the COVID-19 emergency has ended.
Since the enactment of the CARES Act on March 26, 2020, the Bureau of Prisons has placed more than 12,000 individuals in home confinement under CARES Act authority. Of those, only a fraction of one percent have been returned to secure custody due to new criminal conduct.
Owner of D.C.-area Tax Preparation Business Pleads Guilty to Tax Refund Fraud SchemeRead the Press Release
An Indiana woman pleaded guilty in federal court last Friday in the District of Columbia to conspiring to file false tax returns and related charges.
According to court documents and statements made in court, Awett Tedla of Indianapolis was the owner and operator of Speedy Tax Services, L.L.C., a tax preparation business in Washington, D.C., and District Heights, Maryland. From 2012 through 2016, Tedla and her coconspirators prepared and electronically filed with the IRS fraudulent returns on behalf of clients and illegally-obtained identities of unwitting taxpayers, claiming purported refunds were due. The false returns reported fictitious businesses and claimed certain tax credits in order to generate inflated tax refunds. Clients paid an increased fee depending on the size of the fraudulent refund.
Tedla also underreported business gross receipts and taxable income on her 2016 personal income tax return, and in total, evaded approximately $171,534 in income tax between 2013 through 2016.
She faces a maximum sentence of 20 years in prison for wire fraud, 10 years in prison for conspiring to file false claims, five years in prison for tax evasion and a mandatory sentence of two years in prison for aggravated identity theft. Tedla also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA) are investigating the case.
Trial Attorneys Mark McDonald and George Meggali of the Justice Department’s Tax Division are prosecuting the case.