District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Florida Man Charged with Federal Hate Crimes for Racially Motivated Attack Against Group of Black MenRead the Press Release
A federal grand jury in Gainesville, Florida, returned a six-count indictment charging David Emanuel, 61, with committing hate crimes for his racially motivated attack on a group of Black men who were surveying land along a public road in Cedar Key, Florida.
The indictment returned by a federal grand jury alleges that on Sept. 6, 2022, Emanuel willfully intimidated the victim, F.D.D., and attempted to injure, intimidate and interfere with him, through the use of Emanuel’s vehicle, because of F.D.D.’s race and color.
Emanuel is further alleged to have willfully intimidated and interfered with, and attempted to intimidate and interfere with, five additional victims, through the use of his vehicle, because of the victims’ race and color. According to the indictment, all six victims were Black males who were surveying land owned by one of the victims at the time of the alleged offenses.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Jason R. Coody for the Northern District of Florida, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division and Special Agent in Charge Sherri E. Onks of the FBI Jacksonville Field Office made the announcement.
The FBI Jacksonville Field Office and Gainesville Resident Agency investigated the case, with assistance from the Levy County Sheriff’s Office.
Assistant U.S. Attorney Kaitlin Weiss for the Northern District of Florida and Trial Attorney Laura-Kate Bernstein of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Detroit-area Software Developer Sentenced to Prison for Employment Tax CrimesRead the Press Release
A Michigan business owner was sentenced today to 12 months and one day in prison for failing to collect and pay over to the IRS employment taxes withheld from his employees’ wages.
According to court documents and statements made in court, Yigal Ziv of West Bloomfield owned and operated Multinational Technologies, Inc. (MTI), a software development firm based in Walled Lake. Ziv was responsible for filing MTI’s quarterly employment tax returns and collecting and paying to the IRS payroll taxes withheld from employees’ wages. From the first quarter of 2014 through the first quarter of 2018, Ziv collected approximately $691,000 in employment taxes from MTI’s employees, but did not file employment tax returns or pay the withheld taxes to the IRS. Even after learning of the IRS’s ongoing criminal investigation in May 2018, Ziv did not file MTI’s employment tax returns from the fourth quarter of 2019 through the fourth quarter of 2020 and did not pay the IRS approximately $199,000 in payroll taxes withheld from MTI’s employees. During that same period, Ziv directed MTI to spend hundreds of thousands of dollars for his personal benefit, including home mortgage payments, luxury auto lease payments and department store purchases. In total, Ziv caused a tax loss to the IRS of $1,169,000.
In addition to the term of imprisonment, U.S. District Judge David M. Lawson for the Eastern District of Michigan ordered Ziv to serve one year of supervised release and to pay a $5,000 fine and $897,271.80 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting Special Agent-in-Charge Charles Miller of IRS-Criminal Investigation Detroit Field Office made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Kenneth C. Vert and George Meggali of the Justice Department’s Tax Division prosecuted the case.
Readout of Associate Attorney General Vanita Gupta and Access to Justice Director Rachel Rossi’s Trip to IowaRead the Press Release
Associate Attorney General Vanita Gupta joined Director Rachel Rossi of the Office for Access to Justice (ATJ) in Des Moines, Iowa, today as part of the Department’s National Public Defense Day Tour to recognize the 60th anniversary of the landmark Supreme Court decision in Gideon v. Wainwright, which held that criminal defendants are entitled to counsel when facing felony charges and celebrate the role of public defenders in the American legal system.
Associate Attorney General Gupta and Director Rossi met with Iowa Supreme Court Justice Matthew McDermott, who is also the Chair of the Iowa Access to Justice Commission, about the Commission’s work to help individuals struggling with fully accessing Iowa’s justice system. They also met with Iowa State Public Defender Jeff Wright, who hosted the visit and helped lead a listening session with local leaders about the issues facing the indigent defense bar in Iowa, including high caseloads and low pay, recruitment and retention concerns, and particular challenges facing attorneys in rural areas. Associate Attorney General Gupta and Director Rossi were joined at the listening session by U.S. Attorney for the Southern District of Iowa Richard Westphal.
The Associate Attorney General announced during the listening session an initiative to help the Justice Department connect with and address the needs of public defenders in communities across the country, with the creation of a new attorney position in ATJ dedicated to supporting, collaborating with, and engaging the state and local public defense community.
The department’s National Public Defense Day Tour has also made stops in Miami; Tulsa, Oklahoma; the Muscogee (Creek) Nation; Nashville, Tennessee; and Las Vegas. The tour will conclude on Friday at the Justice Department with an event recognizing federal, state and local public defenders that will be livestreamed for the public.
Associate Attorney General Vanita Gupta (left center) with Access to Justice Director Rachel Rossi (left), Iowa State Public Defender Jeff Wright (right center) and Iowa Supreme Court Justice and Chair, Access to Justice Commission Matthew McDermott (right). Associate Attorney General Vanita Gupta (mid, center), Access to Justice Director Rachel Rossi (left, center), U.S. Attorney Rich Westphal (right, center) and others participate in a listening session with members of the public defense community.Justice Department Files Sexual Harassment Lawsuit Against Michigan Rental Property OwnerRead the Press Release
The Justice Department announced today that it has filed a sexual harassment lawsuit under the Fair Housing Act against the owner and manager of rental properties in Dearborn Heights, Michigan.
The lawsuit, filed in the U.S. District Court for the Eastern District of Michigan, alleges that Mohamad Hussein, who owns or manages over two dozen rental properties in Dearborn Heights, has subjected actual and prospective female tenants to sexual harassment on multiple occasions since at least 2017. The complaint alleges that Hussein made unwelcome sexual comments and advances, and offered actual and prospective female tenants housing-related benefits in exchange for engaging in sex acts with him or sending him sexually explicit images. According to the complaint, many of these instances took place in the spring of 2020, during the first wave of the COVID-19 pandemic, when it was difficult to secure housing in Michigan. The complaint also alleges that Hussein sent sexually explicit images of himself to prospective female tenants.
“No one should be denied the right to housing because they refuse to submit to a landlord’s sexual demands,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to vigorously enforcing the Fair Housing Act and seeking justice for those sexually harassed by landlords and other housing providers.”
“Every resident of our district should be able to find and secure housing without facing discrimination,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Any feeling of safety and security is ripped away when individuals face sexual harassment in their own home. Our Civil Rights Unit works closely with the Civil Rights Division to hold those who violate the Fair Housing Act accountable.”
Today’s lawsuit seeks monetary damages to compensate persons harmed by the alleged harassment, civil penalties to vindicate the public interest and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
The Justice Department launched its Sexual Harassment in Housing Initiative in October 2017. The initiative, which is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country, seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the Initiative, the department has filed 29 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 race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
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 Mohamad Hussein, or who have other information that may be relevant to this case, can contact the Housing Discrimination tip line at 1-833-591-0291, select a language, and select option number 2, then option number 6 to leave a message. Individuals may also contact the U.S. Attorney’s Office for the Eastern District of Michigan at 313-226-9151, or by email at [email protected]. Individuals may also 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.
Jelly Bean Communications Design and its Manager Settle False Claims Act Liability for Cybersecurity Failures on Florida Medicaid Enrollment WebsiteRead the Press Release
Jelly Bean Communications Design LLC (Jelly Bean) and Jeremy Spinks have agreed to pay $293,771 to resolve False Claims Act allegations that they failed to secure personal information on a federally funded Florida children’s health insurance website, which Jelly Bean created, hosted, and maintained.
“Government contractors responsible for handling personal information must ensure that such information is appropriately protected,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will use the False Claims Act to hold accountable companies and their management when they knowingly fail to comply with their cybersecurity obligations and put sensitive information at risk.”
The Florida Healthy Kids Corporation (FHKC) is a state-created entity that offers health and dental insurance for Florida children ages five through 18. FHKC receives federal Medicaid funds as well as state funds to provide children’s health insurance programs. On Oct. 31, 2013, FHKC contracted with Jelly Bean for “website design, programming and hosting services.” The agreement required that Jelly Bean provide a fully functional hosting environment that complied with the protections for personal information imposed by the Health Insurance Portability and Accountability Act of 1996, and Jelly Bean agreed to adapt, modify, and create the necessary code on the webserver to support the secure communication of data. Jeremy Spinks, the company’s manager, 50% owner, and sole employee, signed the agreement. Under its contracts with FHKC, between 2013 and 2020, Jelly Bean created, hosted, and maintained the website HealthyKids.org for FHKC, including the online application into which parents and others entered data to apply for state Medicaid insurance coverage for children.
The settlement announced today resolves allegations that from January 1, 2014, through Dec. 14, 2020, contrary to its representations in agreements and invoices, Jelly Bean did not provide secure hosting of applicants’ personal information and instead knowingly failed to properly maintain, patch, and update the software systems underlying HealthyKids.org and its related websites, leaving the site and the data Jelly Bean collected from applicants vulnerable to attack. In or around early December 2020, more than 500,000 applications submitted on HealthyKids.org were revealed to have been hacked, potentially exposing the applicants’ personal identifying information and other data. The United States alleged that Jelly Bean was running multiple outdated and vulnerable applications, including some software that Jelly Bean had not updated or patched since November 2013. In response to this data breach and Jelly Bean’s cybersecurity failures, FHKC shut down the website’s application portal in December 2020.
“Safeguarding patients’ medical and other personal information is paramount,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “This settlement demonstrates the commitment by my office and our partners to use every available tool to protect Americans’ health care data.”
“Companies have a fundamental responsibility to protect the personal information of their website users. It is unacceptable for an organization to fail to do the due diligence to keep software applications updated and secure and thereby compromise the data of thousands of children,” said Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our federal and state partners to ensure that enrollees can rely on their health care providers to safeguard their personal information.”
On Oct. 6, 2021, the Deputy Attorney General announced the Department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put U.S information or systems at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents and breaches. Information on how to report cyber fraud can be found here.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S Attorney’s Office for the Middle District of Florida, with assistance from HHS-OIG.
The matter was handled by Trial Attorney Michael Hoffman and Assistant U.S. Attorney Jeremy Bloor.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Former New Orleans Police Officer Sentenced for Sexually Assaulting a 15-Year-Old GirlRead the Press Release
A former police officer with the New Orleans Police Department (NOPD) was sentenced in federal court to 14 years in prison for sexually assaulting a 15-year-old crime victim in violation of her constitutional rights.
According to the court documents, in May 2020, Rodney Vicknair, 55, while working in his capacity as an NOPD officer, escorted a then-14-year-old girl, who had been sexually assaulted by another man, to the hospital to undergo a forensic exam, also known as a rape kit. Vicknair gave the victim his cell phone number and offered to be her friend and mentor. In the months and weeks thereafter, Vicknair and the victim spoke on the phone and exchanged messages on Snapchat. Vicknair, while in uniform, often stopped by unannounced at the victim’s residence. Over time, Vicknair made comments to the victim that were sexual in nature.
On the night of Sept. 23, 2020, Vicknair arrived at the victim’s house. By that time, she had turned 15 years old. He told her to come outside and get into his vehicle. She got into the passenger’s seat while Vicknair remained in the driver’s seat. Then, he locked the doors so that the victim could not leave. Vicknair leaned over toward the victim, and she feared for her physical safety. He then sexually assaulted the victim when he intentionally touched her genitals under her clothing without her consent. Vicknair admitted in court that he acted without a legitimate law enforcement purpose and that he knew his actions were wrong and against the law but that he engaged in such conduct anyway.
“We are grateful to this young survivor for coming forward, even though she thought no one would believe her,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Had she not been willing to do so, we would not have been able to hold the defendant accountable for his heinous crime. This case should send a strong message to law enforcement officers who sexually abuse victims, particularly children, that they are not above the law and will be held accountable.”
“The public must be able to trust that law enforcement will faithfully execute their sworn duties or face the consequences for failing to do so,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Our office, along with the Department of Justice, the FBI and state and local law enforcement agencies, will continue to investigate and prosecute any violations of constitutional rights.”
“The FBI is dedicated to doing the work to restore public faith in law enforcement when individuals attempt to use the badge to hide their illegal behavior,” said Special Agent in Charge Douglas A. Williams Jr. of the FBI New Orleans Field Office. “We also thank the U.S. Attorney's Office for the Eastern District of Louisiana the Department of Justice Civil Rights Division, and the New Orleans Police Department Public Integrity Unit for their efforts in this case.”
Assistant Attorney General Kristen Clarke, U.S. Attorney Duane A. Evans and Special Agent in Charge Douglas A. Williams Jr. made the announcement.
The FBI New Orleans Field Office and the New Orleans Police Department Public Integrity Bureau investigated the case.
Criminal Chief Tracey Knight for the Eastern District of Louisiana and Former Special Litigation Counsel Fara Gold of the Civil Rights Division’s Criminal Section prosecuted the case.
Federal Jury Finds Kentucky Woman Guilty of Mailing Threatening Communications to Neighbors Because of Their RaceRead the Press Release
A federal jury convicted a local woman on Friday of mailing communications containing threats to injure others in November and December 2020.
According to court documents and evidence presented at trial, Suzanne Craft, 54, of Louisville, sent multiple threating communications via the United States Postal Service to a family that lived in her Lake Forrest neighborhood. Many of these communications contained threats of violence and racial slurs. The jury convicted Craft of five counts of mailing threatening communications.
“Holding people accountable for threats and intimidation based on race is a top priority of the Department,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are grateful to the U.S. Attorney’s Office for their professional and diligent pursuit of this case.”
“I commend the outstanding work of the FBI’s Louisville Public Corruption Task Force, the U.S. Postal Inspection Service (USPIS), and the assigned prosecutors during the investigation and trial of this case,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “This office, working together with our law enforcement partners, will continue to aggressively investigate and prosecute threats of violence and raced based intimidation throughout the Western District.”
“Receiving violent, hate-filled threats can have a devastating and lifelong impact on the victim. These senseless acts violate the law, run contrary to our values as Americans and defy the principles of tolerance that define our community,” said Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office. “Through the great work of the Public Corruption/Civil Rights Task Force, and that of our federal prosecutive partners, we were able to hold Kraft accountable for her actions. Our hearts are with the victims of these crimes, we appreciate their strength to come forward, and we hope this brings some semblance of closure to this ordeal.”
“Keeping the U.S. mailstream safe for all Americans is a priority for the USPIS,” said Inspector in Charge Lesley Allison of the USPIS Pittsburgh Division. “Threats of violence in the mail, especially those which are racially motivated, will not be tolerated. We work diligently with our law enforcement partners to bring to justice anyone who mails such threats.”
The jury further found that for each of these five counts, Craft sent the threatening communications to her neighbors because of their actual or perceived race or color.
Sentencing is scheduled for June 21, before a U.S. District Judge for the Western District of Kentucky. Craft remains in federal custody pending sentencing and faces a maximum sentence of 25 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
Assistant Attorney General Clarke, U.S. Attorney Michael A. Bennett for the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office and USPIS in Charge Lesley Allison of the Pittsburgh Division made the announcement.
The FBI Louisville Public Corruption Civil Rights Task Force and the USPIS are investigating the case.
Assistant U.S. Attorneys Christopher Tieke and Stephanie Zimdahl for the Western District of Kentucky are prosecuting the case, with assistance from paralegal Carissa Moss, and with assistance in the investigation from Trial Attorney Mary Hahn of the Civil Rights Division.
United States Files Complaint Alleging that Rite Aid Dispensed Controlled Substances in Violation of the False Claims Act and the Controlled Substances ActRead the Press Release
The Justice Department announced today that the United States has filed a complaint in intervention in a whistleblower lawsuit brought under the False Claims Act (FCA) against Rite Aid Corporation and various subsidiaries (collectively Rite Aid) alleging that Rite Aid knowingly filled unlawful prescriptions for controlled substances. In addition to alleging claims under the FCA, the government’s complaint also alleges violations of the Controlled Substances Act (CSA). Rite Aid is one of the country’s largest pharmacy chains, with over 2,200 pharmacies in 17 states.
“The Justice Department is using every tool at our disposal to confront the opioid epidemic that is killing Americans and shattering communities across the country,” said Attorney General Merrick B. Garland. “That includes holding corporations, like Rite Aid, accountable for knowingly filling unlawful prescriptions for controlled substances.”
“We allege that Rite Aid filled hundreds of thousands of prescriptions that did not meet legal requirements,” said Associate Attorney General Vanita Gupta. “According to our complaint, Rite Aid’s pharmacists repeatedly filled prescriptions for controlled substances with obvious red flags, and Rite Aid intentionally deleted internal notes about suspicious prescribers. These practices opened the floodgates for millions of opioid pills and other controlled substances to flow illegally out of Rite Aid’s stores.”
“The opioid crisis has exacted a heavy toll on communities across the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s complaint is an important reminder that the Justice Department will hold accountable any individuals or entities, including pharmacies, that fueled this terrible crisis.”
“Pharmacies, physicians, corporations, and other health care entities that have contributed to the proliferation of opioids in our communities and the tragic loss of life from overdose deaths must answer for their role in the crisis we now face,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “This complaint is a continuation of the Justice Department’s commitment to hold accountable those entities that aggravated and profited from the opioid crisis.”
The government’s complaint alleges that, from May 2014 through June 2019, Rite Aid knowingly filled at least hundreds of thousands of unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not for a medically accepted indication, or were not issued in the usual course of professional practice. These unlawful prescriptions included, for example, prescriptions for the dangerous and highly abused combination of drugs known as “the trinity,” prescriptions for excessive quantities of opioids, such as oxycodone and fentanyl, and prescriptions issued by prescribers whom Rite Aid pharmacists had repeatedly identified internally as writing illegitimate prescriptions. The government alleges that Rite Aid pharmacists filled these prescriptions despite clear “red flags” that were highly indicative that the prescriptions were unlawful. The government further alleges that Rite Aid not only ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from certain pharmacists, its distributor, and its own internal data, but compounded its failure to act by intentionally deleting internal notes about suspicious prescribers written by Rite Aid pharmacists and directing district managers to tell pharmacists “to be mindful of everything that is put in writing.” By knowingly filling unlawful prescriptions for controlled substances, the government alleges that Rite Aid violated the CSA and, where Rite Aid sought reimbursement from federal healthcare programs, also violated the FCA.
Along with Rite Aid Corporation, the government’s complaint names as defendants the following Rite Aid subsidiaries: Rite Aid Hdqtrs, Corp.; Rite Aid of Connecticut, Inc.; Rite Aid of Delaware, Inc.; Rite Aid of Maryland; Rite Aid of Michigan; Rite Aid of New Hampshire; Rite Aid of New Jersey; Rite Aid of Ohio; Rite Aid of Pennsylvania; and Rite Aid of Virginia.
“The action supported today by the Drug Enforcement Administration (DEA) should serve as a warning to those in the pharmacy industry who choose to put profit over customer safety,” said Special Agent in Charge Orville O. Greene of the DEA.
“Pharmacies are required to ensure prescription drugs are only dispensed based on valid prescriptions,” said Special Agent in Charge Maureen Dixon of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “Prescriptions which are not medically necessary, and not for a medically accepted indication, will not be paid for by Medicare and Medicaid. HHS-OIG will continue to work with our law enforcement partners and the Department of Justice’s Civil Division to recover improperly paid funds through the FCA.”
Whistleblowers Andrew White, Mark Rosenberg, and Ann Wegelin, who all previously worked for Rite Aid at various pharmacies, filed an action in October 2019 under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties. The case is captioned United States ex rel. White et al. v. Rite Aid Corp., et al., No. 1:21-cv-1239 (N.D. Ohio).
The United States’ intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Northern District of Ohio. The DEA Cleveland Field Division, FBI Cleveland Field Office, and HHS-OIG provided substantial assistance in the investigation.
The United States is represented in this matter by Senior Trial Counsel Christopher Wilson of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Patricia Fitzgerald and Elizabeth Berry for the Northern District of Ohio.
The Justice Department is committed to holding responsible those who have fueled the opioid crisis by violating the law. Last week, the Associate Attorney General announced the creation of the Opioid Epidemic Civil Litigation Task Force, which formalizes and enhances coordination of the Department’s existing work and will consider new initiatives. Because of the scope and duration of the crisis, the Task Force includes U.S. Attorneys’ Offices, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch (Fraud Section), the Drug Enforcement Administration, and other Department components. The Task Force will steer the Department’s civil litigation efforts involving actors alleged to have contributed to the opioid epidemic, including by diverting prescription opioids.
The claims asserted against defendants are allegations only and there has been no determination of liability.
U.S. Customs and Border Protection Officer Indicted for Using Excessive Force and Obstruction of JusticeRead the Press Release
A federal grand jury in the Western District of Texas returned a three-count indictment that was unsealed today, charging a U.S. Customs and Border Protection officer with deprivation of rights under color of law and the falsification of a document in a federal investigation.
According to the indictment, Miguel Delgado Jr. used excessive force in two separate incidents that occurred on or about June 15, 2020, and Oct. 20, 2019, while he was on duty at the Bridge of Americas Port of Entry in El Paso, Texas. As alleged in the indictment, both victims suffered bodily injury as a result of Delgado’s unlawful use of force. The indictment also charges Delgado with including false statements in a report about one of the incidents.
If convicted, Delgado faces a maximum sentence of 10 years in prison for each of the use of force incidents and a maximum of 20 years in prison for submitting a false report about one of the incidents.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney for the Western District of Texas Jaime Esparza, Special Agent in Charge Jaime Ordonez of the Department of Homeland Security Office of Inspector General and Special Agent in Charge Gilberto Carreon Jr. of the U.S. Customs and Border Protection’s Office of Professional Responsibility made the announcement.
Assistant U.S. Attorneys Patricia Aguayo for the Western District of Texas and Trial Attorney Olimpia Michel of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Co-hosts Protecting Places of Worship ForumRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that the United States Attorney’s Office is co-hosting a forum on Protecting Places of Worship on March 14, 2023, at the Gateway Center at the Gibson Health Hub from 6 until 9 pm.
The forum will provide faith-based leaders and other community members with strategies to protect places of worship from hate crimes and other threats of violence. Topics will include an overview of religious hate crimes and laws, tools and resources from federal and local law enforcement to assess the safety of places of worship, an overview of active shooter training and situations, and best practices for the prevention of and response to hate crimes against places of worship.
“Terror and fear and hatred blossom in the dark,” said U.S. Attorney Uballez, “because in the dark, we think that we are alone. Only by shining the light do we see that we are never alone but are instead standing side-by-side facing the darkness. I’m proud to help shine the light of love on New Mexico.”
The event will be facilitated by the Community Relations Service of the Department of Justice and co-hosted by the City of Albuquerque’s Office of Equity and Inclusion. DOJ’s Community Relations Service was born in the Civil Rights era and is “America’s Peacemaker,” dedicated to facilitating, mediating, training, and consulting with communities to prevent and resolve conflict arising from actual or perceived race, color, national origin, gender, gender identity, sexual orientation, religion, or disability. The City of Albuquerque’s Office of Equity and Inclusion has led the effort to bring together the Department of Justice, law enforcement agencies and community for this ground-breaking forum.
The Protecting Places of Worship forum is part of United Against Hate, a nationwide Department of Justice initiative to combat unlawful acts of hate by building trust and community. The District of New Mexico was selected to participate in the second cohort of USAO’s to rollout the United Against Hate initiative.
Speakers for the event will include representatives from the U.S. Attorney’s Office, the New Mexico Office of the Attorney General, the Federal Bureau of Investigation, the US Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, the Albuquerque Police Department, and local Interfaith leaders.
The forum will be held at the Gateway Center at the Gibson Health Hub located on 5400 Gibson Boulevard Southeast, Room #1, Albuquerque, New Mexico 87108. Registration is open until March 14, 2023 at 12 noon and can be accessed through Eventbrite: https://www.eventbrite.com/e/protecting-places-of-worship-forum-tickets-532056143247. Food will be provided, and interpreters will be present.
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Seven Charged in Sophisticated Stolen Identity Tax Refund Fraud Scheme that Sought over $100 Million from the IRSRead the Press Release
On March 7, a federal grand jury in Austin returned an indictment, unsealed today, charging seven individuals with conspiracy to commit mail and wire fraud and other crimes arising out of their scheme to defraud the IRS using stolen identities.
According to the indictment, from 2018 through 2021, Abraham Yusuff, of Round Rock, Meghan Inyang, of San Antonio, Christopher Eduardo, of Round Rock, Christian Mathurin, of Nashville, Tennessee, Dillon Anozie, of San Antonio, Babajide Ogunbanjo, of Austin, and Aydin Mammadov, of Houston, engaged in a conspiracy to claim fraudulent tax refunds using the stolen identities of accountants and taxpayers by filing at least 371 false tax returns claiming over $111 million in refunds from the IRS.
Yusuff allegedly recruited and directed Eduardo, Mathurin, Anozie, Ogunbanjo and Mammadov to provide addresses to him that could be used in the scheme. Yusuff and others then allegedly registered with the IRS, posing as authorized agents of multiple taxpayers using stolen information relating to the taxpayers and their real tax preparers. The conspirators then allegedly directed the IRS to change the addresses on file for the taxpayers and to send their tax information, including account transcripts and wage records, to the addresses controlled by the conspirators. The conspirators then allegedly used this information to electronically file tax returns claiming fraudulent refunds and directed the refunds the IRS to split the refunds among several prepaid debit cards. Prior to issuing tax refunds to some taxpayers, the IRS allegedly sent verification letters to the addresses controlled by the defendants, and the defendants and others, pretending to be the taxpayers, instructed the IRS to release the refunds.
The indictment also charges that Yusuff, Inyang, Eduardo, Anozie, Ogunbanjo and Mammadov obtained the prepaid debit cards that were to be used to receive the fraudulent refunds and that once the refunds were deposited onto the prepaid debit cards, they laundered the funds by purchasing, among other things, money orders from local stores in amounts low enough to avoid reporting thresholds. Yusuff and others also allegedly used the prepaid debit cards and money orders to purchase designer clothing, home renovation materials and used cars at auction. The indictment alleges that all defendants kept or received money orders purchased with the fraudulent refunds as their share of the illegal proceeds.
The indictment charges each defendant with varying crimes, including mail and wire fraud, conspiracy to commit mail and wire fraud, aggravated identity theft, money laundering and access device fraud. If convicted, they face a maximum sentence of 20 years in prison for the mail and wire fraud and the conspiracy of said fraud, 20 years for money laundering, 10 years for access device fraud, and a mandatory sentence of two years for aggravated identity theft. In addition to any term of imprisonment, each of the defendants also faces a period of supervised release, monetary penalties, restitution and forfeiture. 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 Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The IRS–Criminal Investigation and the Treasury Inspector General for Tax Administration are investigating the case.
Assistant Chief Michael Boteler and Trial Attorneys Mitchell T. Galloway and Mary Frances Richardson 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.
President of Oklahoma Steel Pole Manufacturer Pleads Guilty to Tax EvasionRead the Press Release
An Oklahoma man pleaded guilty, on Friday, March 10, to evading over $1 million in income taxes.
According to court documents, from 2014 to 2019, Phillip Barry Albert of Tulsa was President of Pelco Structural LLC and directed its outside payroll service company to pay him over $2.6 million. Albert instructed that the payments be classified as reimbursements rather than income, so that federal income taxes would not be withheld, and the payments would not be reported on his Forms W-2 as wages.
Albert filed individual income tax returns for 2014 through 2019 that did not report the payments, totaling $2,615,750, thus causing a tax loss to the IRS of $1,000,232.
Albert faces a maximum penalty of 5 years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine the 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 Clinton J. Johnson for the Northern District of Oklahoma made the announcement.
IRS-Criminal Investigation and the FBI are investigating the case.
Trial Attorney Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorneys Richard Cella and Thomas Duncombe of the Northern District of Oklahoma are prosecuting the case.
Pennsylvania Owners of Landscape and Excavation Firm Charged with Conspiring to Defraud the IRS and Employment Tax CrimesRead the Press Release
A federal grand jury in Philadelphia returned an indictment charging a Pennsylvania man and woman with conspiring to defraud the IRS and other tax crimes, including failing to pay employment taxes to the IRS.
According to the indictment, which was unsealed today, from approximately October 2013 through December 2021, Theodore Shearba and Jennifer Cemini, both of Perkiomenville, owned and operated a landscaping and excavation business and attempted to defraud the IRS by (1) not reporting the income they received from the business, (2) using business funds to pay for personal expenditures, (3) not paying employment taxes, including the income tax withheld from employees’ paychecks and Social Security and Medicare taxes and (4) changing business names and concealing business income to thwart IRS efforts to collect the unpaid employment taxes. It is also alleged that Shearba did not file individual income tax returns for years 2019 through 2021.
If convicted, Shearba and Cemini each face a maximum penalty of five years in prison for the conspiracy count and each employment tax count. Shearba also faces a maximum penalty of one year in prison for each count of failing to file a tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Thomas F. Koelbl and Trial Attorney George Meggali of the Justice Department’s Tax Division 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.
Ongoing Jungle Life Mafia Street Gang Prosecution Results in Multiple Guilty Pleas and Sentencings for Nine Tangipahoa Parish ResidentsRead the Press Release
NEW ORLEANS, LOUISIANA – MICHAEL ALEXANDER, SR., a/k/a “Monsta,” a/k/a “Jamond,” age 40, ATRELL ANDERSON, a/k/a “Trey,” a/k/a “Trel,” a/k/a “Da Boi,” age 31, TERRELL HAYNES, a/k/a "Redman," age 44, MICHAEL ALEXANDER, JR., a/k/a "Mike Mike," age 22, BRANDON BAKER, age 37, LOUIS BELLS, JR., age 22, JERALD ALEXANDER, age 37, STAR ROBICHAUX, age 43, and JOSHUA PRINE, age 42, residents of Tangipahoa Parish, Louisiana, have now all pled guilty before U.S. District Judge Jay C. Zainey, announced U.S. Attorney Duane A. Evans.
According to court documents, Drug Enforcement Administration (“DEA”) agents began investigating the drug trafficking activities of the Jungle Life Mafia street gang in Tangipahoa Parish, Louisiana in 2019. The investigation spanned two years which led to the seizure of drugs, drug proceeds, and guns. In total, DEA agents seized $590,602 in U.S. currency and 10 illegal guns.
On March 9, 2023, ALEXANDER, SR. pled guilty to conspiracy to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and a quantity of cocaine, possession with intent to distribute fentanyl, heroin, and cocaine, possession of firearms in furtherance of drug trafficking crimes, and being a felon in possession of firearms.
For the conspiracy charge, ALEXANDER, SR. faces a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. For possession with intent to distribute heroin and fentanyl, he faces a statutory mandatory minimum sentence of 5 years, up to 40 years imprisonment, a fine of up to $5,000,000, and at least 4 years of supervised release following any term of imprisonment. For possessing firearms in furtherance of a drug trafficking offense, ALEXANDER, SR. faces a mandatory minimum sentence of 5 years, up to life imprisonment, to run consecutive with any other sentence, a fine of up to $250,000, and up to 5 years of supervised release. If convicted of being a felon in possession of firearms, ALEXANDER, SR. faces up to 10 years imprisonment, a fine of up to $250,000, and up to 3 years supervised release. For each of the four (4) charges against him, ALEXANDER, SR. must also pay a $100 mandatory special assessment fee. Sentencing for ALEXANDER, SR. is scheduled for June 13, 2023.
On October 6, 2022, ANDERSON pled guilty to conspiring to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and 100 grams or more of heroin. He also pled guilty to distribution of methamphetamine and use of a communication facility in furtherance of a drug trafficking crime. On March 9, 2023, ANDERSON was sentenced to 188 months imprisonment, 5 years of supervised release, and a $600 mandatory special assessment fee.
On September 19, 2022, HAYNES pled guilty to conspiring to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and 1 kilogram or more of heroin. He also pled guilty to distribution of methamphetamine and possessing a firearm as a convicted felon. For the conspiracy count, he faces a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. For distribution, HAYNES faces a statutory mandatory minimum sentence of 5 years, up to 40 years imprisonment, a fine of up to $5,000,000, and at least 4 years of supervised release following any term of imprisonment. For being a felon in possession of a firearm, HAYNES faces up to 10 years imprisonment, a fine of up to $250,000, and up to 3 years supervised release. For each of the three (3) charges against him , HAYNES must also pay a $100 mandatory special assessment fee. Sentencing for HAYNES is scheduled for April 18, 2023.
On October 19, 2022, ALEXANDER, JR. pled guilty to conspiring to distribute quantities of heroin and methamphetamine, possession with intent to distribute heroin and methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and use of a communication facility in furtherance of drug trafficking. On February 14, 2023, ALEXANDER, JR. was sentenced to 7 years imprisonment, 5 years of supervised release, and a $500 mandatory special assessment fee.
On January 18, 2023, JERALD ALEXANDER pled guilty to conspiracy to distribute marijuana, possession with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. For the marijuana offenses, he faces up to 5 years imprisonment, up to a $250,000 fine, and at least 2 years of supervised release. For possessing a firearm in furtherance of drug trafficking, ALEXANDER faces a mandatory minimum sentence of 5 years up to life imprisonment, to run consecutive to any other sentence, up to a $250,000 fine, and up to 5 years of supervised release. For being a felon in possession of a firearm, he faces a maximum of ten years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. For each of the four (4) charges against him, ALEXANDER must also pay a $100 mandatory special assessment fee. Sentencing for ALEXANDER is scheduled for April 18, 2023.
On August 2, 2022, BELLS pled guilty to being a felon in possession of a firearm. On October 25, 2022, BELLS was sentenced to 71 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee.
On October 4, 2022, BAKER pled guilty to conspiracy to distribute quantities of heroin and methamphetamine. On February 28, 2023, he was sentenced to 27 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee.
On September 14, 2022, ROBICHAUX pled guilty to conspiracy to distribute 400 grams or more of fentanyl and 1 kilogram or more of heroin. On October 18, 2022, PRINE pled guilty to conspiracy to distribute 400 grams or more of fentanyl and 1 kilogram or more of heroin. Both ROBICHAUX and PRINE face a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. Sentencing for ROBICHAUX is scheduled for April 25, 2023 and sentencing for PRINE is scheduled for June 13, 2023.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the federal Drug Enforcement Administration, Hammond Police Department, Tangipahoa Parish Sheriff’s Office, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, 21st Judicial District Attorney’s Office, St. Tammany Parish District Attorney’s Office, Jefferson Parish Sheriff’s Office, and the U.S. Marshals Service. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Michigan Nonprofit Organizations Agree to Pay $225,887 to Settle False Claims Act Allegations Relating to Improper Receipt of Paycheck Protection Program LoansRead the Press Release
Two Michigan nonprofit organizations, the Michigan Education Association (MEA) and the Michigan Education Special Services Association (MESSA), have agreed to settle allegations that the organizations violated the False Claims Act (FCA) by applying for and obtaining loans under the Paycheck Protection Program (PPP) for which they knew or should have known they were ineligible.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to certain small businesses and other entities struggling to pay employees and other business expenses. Under the rules applicable at the time of the loans covered by today’s settlement, certain nonprofit organizations were not eligible to receive a PPP loan.
In 2020, MEA, a 501(c)(5) nonprofit labor union organization, and MESSA, a 501(c)(9) voluntary employees’ beneficiary association, each applied for and obtained a PPP loan. The United States contended that these organizations knew or should have known they were ineligible to receive their PPP loans, and that they caused the Small Business Administration (SBA) to pay lender fees to the bank that processed the loans. In connection with the settlements announced today, MEA will pay $115,265 and MESSA will pay $110,622 to the United States resolve these allegations. MEA and MESSA repaid their loan proceeds in full in December 2020.
“The PPP was intended to provide critical economic relief to eligible small businesses and other entities,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement reflects the department’s commitment to ensuring the integrity of the PPP loan process.”
“Those who violate the False Claims Act by fraudulently receiving SBA pandemic program funds meant for eligible small businesses will be held accountable,” said Special Agent in Charge Sharon Johnson of SBA OIG’s Central Region. “Today’s settlements send a strong message that those responsible will be held accountable. I want to thank the Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit was filed by the Mackinac Center for Public Policy and is captioned U.S. ex rel. Mackinac Center for Public Policy v. Michigan Education Association, et al., Dkt. No. 1:22-cv-00028-HYJ-PJG (W.D. Mich.). Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery. The Mackinac Center for Public Policy’s share of the settlement has not been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Western District of Michigan, with assistance from the SBA’s Office of General Counsel and the SBA Office of the Inspector General.
This matter was handled by Trial Attorney Evan J. Ballan of the Civil Division and Assistant U.S. Attorney Andrew J. Hull of the Western District of Michigan.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Methamphetamine Traffickers Sentenced to Federal PrisonRead the Press Release
Saipan, MP – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that the United States District Court for the Northern Mariana Islands imposed the following sentences against defendants for Conspiracy to Possess Methamphetamine with the intent to Distribute, in violation of 21 U.S.C. §§ 846 and 841(a)(1), and Conspiracy to Maintain a Drug-Involved Premises, in violation of 21 U.S.C. §§ 846 and 856.
HUAISHU WANG (age 40) – convicted of Conspiracy to Possess Methamphetamine with the intent to Distribute, in violation of 21 U.S.C. §§ 846 and 841(a)(1), and sentenced to 188 months imprisonment, three years supervised release, 100 hours community service, and a $100 mandatory assessment.
HONGJIE LI (age 48) – convicted of Conspiracy to Possess Methamphetamine with the intent to Distribute, in violation of 21 U.S.C. §§ 846 and 841(a)(1), and sentenced to 57 months imprisonment, three years supervised release, 50 hours community service, and a $100 mandatory assessment.
YONGBING NI – (age 54), convicted of Conspiracy to Maintain a Drug-Involved Premises, in violation of 21 U.S.C. §§ 846 and 856, and sentenced to 10 months imprisonment, three years supervised release, and a $100 mandatory assessment.
These defendants were also ordered to report to a U.S. Immigration Officer for deportation proceedings as a condition of supervised release.
On May 3, 2022, HONGJIE LI claimed a package mailed from Canada to a private mail facility in Saipan. The package contained 858 grams of methamphetamine. LI transported the package to a residence, where she lived with HUAISHI WANG and YONGBING NI. After the package was delivered to the residence, federal and local law enforcement agents executed a search warrant and discovered the three co-defendants were working together to distribute methamphetamine across the island.
Inside the residence, agents discovered 214 grams of methamphetamine packaged in 46 baggies, an additional 15 grams of methamphetamine, digital scales, three BB-guns similar in appearance to semiautomatic 9mm and .45 caliber handguns, an Airsoft rifle similar in appearance to a 5.56mm rifle, and $68,408 in United States currency. The street value of the drugs was at least $540,000.
U.S. Attorney Anderson stated, “Our office is committed to aggressively prosecuting drug offenses in the CNMI. Substantial penalties apply to many of these crimes. Considering the effects of methamphetamine on our communities, we must make every effort toward deterrence and accountability.”
“Synthetic drugs, such as methamphetamine, are easy to manufacture, highly addictive, and responsible for the growing number of deaths in our communities,” said DEA Honolulu District Office Assistant Special Agent in Charge Victor Vazquez. “Individuals who seek to profit on these dangerous drugs and distribute them will be targeted and held accountable.”
This investigation was led by the Drug Enforcement Administration Los Angeles Field Division, Guam Resident Office, Saipan Post of Duty. The case was prosecuted by Albert Flores, Jr., and Garth Backe, Assistant United States Attorneys in the District of the Northern Mariana Islands
Justice Department and Consumer Financial Protection Bureau File Statement of Interest in Appraisal Discrimination CaseRead the Press Release
The Justice Department and the Consumer Financial Protection Bureau (CFPB) announced today that they filed a statement of interest to explain the application of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA) to lenders relying on discriminatory home appraisals. The statement of interest was filed in Connolly, et al. v. Lanham, et al., a lawsuit currently pending in the U.S. District Court for the District of Maryland alleging that an appraiser and a lender violated the FHA and ECOA by lowering the valuation of a home because the owners were Black and by denying a mortgage refinancing application based on that appraisal.
“Discriminatory home appraisals are unlawful, perpetuate the racial wealth gap, and deny communities of color the benefits of homeownership,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When appraisers or lenders treat homebuyers or homeowners differently because of race, they violate federal law. The Justice Department is working to ensure an open and fair housing market by taking on appraisal bias, modern-day redlining, discriminatory loan pricing practices, and other forms of discrimination that may rear their ugly head at any stage of the home-buying process.”
“The requirement that applicants and homeowners be treated equally is not new,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Appraisal bias is a serious and ongoing issue in this country, and it is critical that the United States ensures the proper construction and application of the Fair Housing Act and the Equal Credit Opportunity Act to hold appraisers and lenders accountable.”
“Lenders that discriminate against people seeking homeownership perpetuate inequities that prevent communities from thriving,” said CFPB Deputy Director Zixta Martinez. “CFPB's Statement of Interest filing with the Justice Department is one piece of our broader efforts to ensure fair and accurate appraisals in our residential mortgage markets.”
The Connolly lawsuit was filed by plaintiffs Nathan Connolly and Shani Mott, who sought a refinance loan for their home in Baltimore. The plaintiffs allege that the appraiser, Shane Lanham, significantly undervalued their home at $472,000 because they are Black. They also allege that they told the lender, loanDepot.com LLC (loanDepot), that the appraisal was discriminatory, but that loanDepot still denied the loan and retaliated against them. When their home was later evaluated by a different appraiser, the plaintiffs replaced their family photos with photos borrowed from white friends and colleagues and enlisted a white colleague to pose as the homeowner. This appraisal resulted in a valuation of $750,000 – an increase of almost 60%.
The defendants have moved to dismiss the case, and the plaintiffs have opposed the defendants’ motions. Through the statement of interest, the department and the CFPB address three legal principles incorrectly represented in loanDepot’s motion to dismiss. First, the statement sets out the appropriate pleading standard for disparate treatment claims under the FHA and ECOA. Second, the statement clarifies that it is illegal for a lender to rely on an appraisal that it knows or should know to be discriminatory. Third, the statement explains that a violation of Section 3617 of the FHA does not require an underlying violation of another provision of the FHA. The motions to dismiss are currently pending before the court.
The FHA prohibits discrimination in housing on the basis of race, color, religion, sex, familial status (having one or more children under 18), national origin and disability. ECOA prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act.
More information about the Civil Rights Division and the laws it enforces is available at justice.gov/crt. More information about the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) is available at pave.hud.gov.
Individuals may report housing discrimination to the Justice Department by calling 1-833-591-0291, emailing [email protected], or submitting a report online. Individuals also may report housing discrimination to Department of Housing and Urban Development by calling 1-800-669-9777 or filing a complaint online. In addition, individuals may report credit discrimination to the Consumer Financial Protection Bureau at 1-855-411-2372 or online.
Associate Attorney General Vanita Gupta Issues Statement on the FBI’s Supplemental 2021 Hate Crime StatisticsRead the Press Release
The Justice Department issued following statement from Associate Attorney General Vanita Gupta on the FBI’s announcement of the 2021 hate crime statistics supplement:
“Preventing, investigating and prosecuting hate crimes are top priorities for the Justice Department, and reporting is key to each of those priorities. The FBI’s supplemental report demonstrates our unwavering commitment to work with our state and local partners to increase reporting and provide a more complete picture of hate crimes nationwide. We will not stop here: We are continuing to work with state and local law enforcement agencies across the country to increase the reporting of hate crime statistics to the FBI. Hate crimes and the devastation they cause communities have no place in this country. The Justice Department is committed to every tool and resource at our disposal to combat bias-motivated violence in all its forms.”
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Additional information on hate crime statistics collection:
The FBI’s 2021 Hate Crime Statistics Supplemental Report released in December 2022, was the first year using annual hate crimes statistics reported entirely through the National Incident-Based Reporting System (NIBRS). Compared to the previous crime data collection system, NIBRS collects significantly more detailed data for each individual criminal incident. Since 2016, the Justice Department has worked with law enforcement agencies to assist in their transition to reporting crime data through NIBRS, including allocating over $120 million in grants to support agencies’ transition.
As a result of the shift to NIBRS-only data collection, law enforcement agency participation in submitting all crime statistics, including hate crimes, fell significantly from 2020 to 2021. Several of the nation’s largest law enforcement agencies, as well as some states, did not make the transition to NIBRS in time to submit data prior to the reporting deadline, and were not included in the 2021 Hate Crime Statistics.
In order to increase agency participation for the 2021 data year, the FBI’s Uniform Crime Reporting Program accepted hate crime data submissions from the summary reporting data collection system and additional NIBRS hate crime reports from 3,025 agencies that covered a combined population of 87,239,467 to help compile this supplemental report. As a result, 14,859 agencies covering 91.1% of the population are represented in this report compared to the 11,834 agencies representing 64.8% represented in the December 2022 report. Nationally, reported hate crime incidents increased 11.6% from 2020 to 2021.
Steps taken by the Justice Department since January 2021 in response to a rise in hate crimes and hate incidents include:
- Aggressively investigating and prosecuting hate crimes – the department has charged more than 70 defendants in over 60 different cases and secured more than 60 convictions of defendants;
- Designating a Deputy Associate Attorney General as the department’s first-ever Anti-Hate Crimes Resources Coordinator;
- Designating the chief of the Criminal Section of the Civil Rights Division to serve in role of facilitating the expedited review of hate crimes;
- Designating an inaugural Language Access Coordinator to improve knowledge, use and expansion of the department’s language resources;
- Announcing that by September 2023 all 94 U.S. Attorneys’ Offices will host a United Against Hate program to help improve the reporting of hate crimes by teaching community members how to identify, report and help prevent hate crimes and to provide an opportunity for trust building between law enforcement and communities;
- Elevating civil rights violations and hate crimes enforcement for prioritization among the FBI’s 56 field offices;
- Designating at least one Assistant U.S. Attorney as a Civil Rights Coordinator in every U.S. Attorney’s Office (USAO);
- Facilitating FBI-hosted regional conferences across the country with state and local law enforcement agencies regarding federal civil rights and hate crimes laws; to encourage reporting; strengthen relationships between law enforcement and local civil rights organizations; and build trust within the diverse communities they serve;
- Launching an FBI-led National Anti-Hate Crimes Campaign involving all 56 FBI field offices to encourage reporting. The campaign includes outdoor advertising, billboards and radio streaming in addition to social media;
- Revitalizing the Community Relations Service (CRS) by, among other things, facilitating nearly a dozen Protecting Places of Worship forums to provide interfaith communities with resources and information on securing their places of worship, help faith leaders build relationships with law enforcement;
- Adding information to the department’s website on reporting hate crimes in 24 languages, including 18 of the most frequently spoken AAPI languages in the United States;
- Awarding over $32 million in grant funding, including through the Matthew Shepard and James Byrd Jr. Hate Crimes Program, which supports state, local and Tribal law enforcement and prosecution, victim assistance and public awareness; the Community Based Approaches to Prevent and Address Hate Crimes initiative, which promotes community awareness, preparedness and responsiveness; the Jabara-Heyer NO HATE Act State-Run Hate Crime Reporting Hotlines Program; and the Community IMPACT program, which supports community organizations in their efforts to serve and support victims of hate crimes; and
- With the Department of Education, issuing facts sheets addressing harassment and discrimination in school, including harassment based on COVID-19 related issues, harassment of LGBTQI+ students and discrimination based on national origin and immigration status.
More information about the department’s response to hate crimes is available here.
Physician Convicted of $5M Health Care Fraud SchemeRead the Press Release
A federal jury convicted a physician today for a $5 million health care fraud scheme.
According to court documents and evidence presented at trial, Frederick Gooding, 71, of Wilmington, Delaware, owned and operated a now-shuttered physiatry and pain management practice in Washington, D.C. Between 2015 and 2018, Gooding fraudulently billed Medicare more than $5 million for injections he did not perform, or did not provide as billed, including complicated spinal injections for which he did not own the necessary equipment.
Gooding was convicted of 11 counts of health care fraud. He is scheduled to be sentenced on June 26 and faces a maximum penalty of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director in Charge David Sundberg of the FBI’s Washington Field Office, and Special Agent in Charge Maureen Dixon of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Philadelphia Regional Office made the announcement.
The FBI and HHS-OIG, with assistance from the Washington, D.C. Medicaid Fraud Control Unit, investigated the case.
Trial Attorneys Jil Simon and Emily Gurskis of the Justice Department’s Fraud Section are prosecuting the case. Assistant Chiefs Jillian Willis and Scott Armstrong were also involved in the prosecution.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Justice Department Announces Allison Turkel as Special Master of the September 11th Victim Compensation FundRead the Press Release
Attorney General Merrick B. Garland today announced that he has chosen Allison Turkel to head the September 11th Victim Compensation Fund (VCF). Turkel, who has served in the Justice Department for over 14 years, most recently in the Office for Victims of Crime, will assume her new position effective March 12, 2023. She will be taking over from August Flentje, who on April 29, 2022, was appointed as Special Master on an interim basis following the departure of former Special Master Rupa Bhattacharyya.
“In administering the September 11th Victim Compensation Fund, the Justice Department is committed to honoring the victims and survivors of the 9/11 terror attacks, including those who bravely responded that day and in the years after, putting themselves at great risk,” said Attorney General Garland. “I am grateful for August’s service as interim VCF Special Master and I am confident that Allison’s leadership, vision, and commitment to serving victims will enable VCF to continue its essential mission.”
“As a native New Yorker, a former Philadelphia area police officer and lieutenant, and a prosecutor in the Manhattan District Attorney’s Office, it is an honor and privilege to be selected by the Attorney General for this important service,” Turkel said. “I recognize I am stepping into the position to carry on the legacy of those who held the role before me, while also focusing on the future of a program that must continue to meet the needs of claimants for decades to come. I look forward to working alongside the dedicated VCF staff to ensure that 9/11 claimants promptly receive the payments to which they are entitled. I also want to thank August for serving as interim Special Master over the past 10 months, leading the team and ensuring there was no slowdown in claims processing.”
The VCF has made tremendous progress since it re-opened in October 2011. As of Feb. 28, 2023, over $11.1 billion in compensation has been awarded to more than 50,000 responders and survivors who have been harmed because of their exposure to 9/11 toxins. Under Flentje’s leadership over the past 10 months, the VCF issued over 7,400 awards totaling over $1 billion dollars. Flentje continued to build upon the progress made during Bhattacharyya’s tenure, including reviewing and rendering decisions on nearly 800 appeals, meeting his goal to reduce to six months or less the waiting period for a decision after an appeal hearing is held. Flentje also saw that the VCF Transformation effort – initiated following the VCF’s Permanent Authorization in July 2019 – continued to move forward to ensure the program remains operational for decades to come.
Flentje is a career civil service attorney with the Department’s Civil Division and will support the VCF and Special Master Turkel as she steps into her new role. The Department does not expect any interruption in VCF claim review or in the issuance of awards during this transition.
Turkel’s career in public service has spanned decades, including her recent work with the Justice Department's Office for Victims of Crime (OVC). Prior to this role, Turkel oversaw all grant functions for the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking. Her prior work also included oversight of the team working with American Indian Tribes to implement the Sex Offender Registration and Notification Act, for which she and her team received the Assistant Attorney General Award for Exceptional Service.
Turkel previously served as the Deputy Director of the Federal, International, and Tribal Division at OVC. She oversaw the Antiterrorism Emergency Assistance Program, including the International Terrorism Victim Expense Reimbursement Program, National Mass Violence Victimization Center, and OVC’s Mass Violence victim support program. As Deputy Director, she also provided guidance and resources for federal partners’ victim services programs. In addition, she led the Tribal victims’ services program, including the creation of innovative and efficient processes to help the Department effectuate a massive increase in funding for the first ever Tribal Victim Services Set Aside Program, and the creation of the Tribal Financial Management Center.
Before her federal service, Turkel was the Director of the National District Attorneys Association’s (NDAA) National Center for Prosecution of Child Abuse (NCPCA), where she managed program activities and staff; and trained and provided technical assistance nationwide on child abuse, maltreatment, sexual exploitation, computer facilitated crimes against children, and domestic violence. Prior to her position at NDAA, Allison was a prosecutor for over 11 years, serving in New York and Illinois. She was an Assistant District Attorney in the New York County District Attorney’s Office for more than nine years, where she tried a wide variety of felony cases.
Turkel was born and raised in New York City, and although she has lived in the Washington D.C. area for the past 20 years, considers herself a lifetime New Yorker. Before beginning her legal career, she served as a police officer and lieutenant for eight years in the Philadelphia area. She received her B.A. from the University of Pennsylvania and her J.D. from Temple University School of Law.
“This is a program that has always operated with transparency and compassion, and this will not change as we continue to work to provide full compensation to those who have suffered as a result of the terrorist attacks of September 11, 2001,” said Turkel.
For additional information on the Victim Compensation Fund, please visit: www.vcf.gov.
Statement from Deputy Attorney General Lisa Monaco on the RESTRICT ActRead the Press Release
The Justice Department today issued the following statement from Deputy Attorney General Lisa Monaco on the RESTRICT Act:
“The Department of Justice has no greater responsibility than protecting the American people. As our nation’s lead law enforcement and domestic counterintelligence agency, the department is a key first line of defense against foreign adversaries that seek to collect and weaponize Americans’ most sensitive data. These regimes are increasingly using untrustworthy information and communications technology products and services, along with the data they collect, against us. We — and the legal authorities we rely on to protect the American people — must evolve, just as these regimes and the technologies they exploit do.
“The RESTRICT Act represents a crucial step forward. It recognizes that today we face acute threats from certain high-risk information and communications technology products and services sourced from foreign adversaries. It would modernize our tools to better address these threats and would enable the Administration to take new actions that are critical to protecting U.S. national security. It also recognizes that we face systemic threats from a range of technology products and services sourced from foreign adversaries and would enable regulation across entire categories of high-risk technology sectors. By directing a coordinated and analytic process across the federal government to evaluate risks, the RESTRICT Act would employ a forward-thinking, evidence-based approach in a constantly changing technology landscape. In giving the President and the Secretary of Commerce key authorities to protect the American people, the RESTRICT Act would provide the federal government a strong legal foundation to combat current and evolving threats. The RESTRICT Act would also ensure that the Department of Justice has the authorities we need to go after adversaries and enablers who violate the law and put our people and businesses at risk.
“The Department of Justice commends the bipartisan group of senators working together on this significant legislation, in particular Senator Warner and Senator Thune, as well as their staff, whom the Administration was pleased to work with in support of this bill. We look forward to working with members on both sides of the aisle to advance this legislation through Congress and send it to the President’s desk.”
Mississippi Man Sentenced for Federal Hate Crime for Cross BurningRead the Press Release
A Mississippi man was sentenced today before U.S. District Judge Halil S. Ozerden to 42 months* in prison followed by three years supervised release and restitution in the amount of $7,810 for burning a cross in his front yard with the intent to intimidate a Black family.
According to court documents, in Gulfport, Mississippi, on Dec. 3, 2020, Axel Cox, 24, violated the Fair Housing Act when he used threatening and racially derogatory language toward his Black neighbors and burned a cross to intimidate them. After a dispute with the Black family victims, Cox wedged two pieces of wood together to form a cross, placed it in clear view of the victims’ residence, doused it in oil and set it alight. During this incident, Cox yelled threats and racial slurs toward the occupants of the house. Cox admitted that he lit the cross on fire because the victims were Black and that he intended to scare them into moving out of the neighborhood.
“This cross burning was an abhorrent act that used a traditional symbol of hatred and violence to stoke fear and drive a Black family out of their home,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “While one might think cross-burnings and white supremacist threats and violence are things of the past, the unfortunate reality is that these incidents continue today. This sentence demonstrates the importance of holding people accountable for threatening the safety and security of Black people in their homes because of the color of their skin or where they are from.”
“No one should endure such hatred and intimidation because of the color of his skin,” said U.S. Attorney Darren LaMarca for the Southern District of Mississippi. “This defendant has been held accountable. His sentence should permeate among his kind and declare that Mississippi and the Department of Justice will not tolerate this hateful behavior.”
“Mr. Axel Cox sought to intimidate members of the community through his intimidating threats," said FBI Special Agent in Charge Jermicha Fomby of the FBI Jackson Field Office. “The FBI prioritizes the protection of civil rights to ensure citizens remain safe without fear of any harm. We remain committed to tirelessly thwarting the nefarious actions of those, like Mr. Cox, who intended to impact fear upon citizens based on biases.”
A federal grand jury indicted Cox on Sept. 20, 2022. Cox faced a maximum penalty of up to 10 years in prison for interfering with the victims’ housing rights and a mandatory minimum of 10 years in prison, consecutive to any other sentence, for using fire to commit a federal felony. Cox also faced a fine of up to $250,000 with respect to each charge.
Assistant Attorney General Clarke, U.S. Attorney LaMarca and Special Agent in Charge Fomby made the announcement.
Assistant U.S. Attorney Andrea Cabell Jones for the Southern District of Mississippi and former Trial Attorney Noah Coakley II of the Civil Rights Division’s Criminal Section prosecuted the case.
For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes.
* This has been corrected to reflect the correct sentencing time of 42 months
Maryland Tax Preparer Convicted of Filing False ReturnsRead the Press Release
A federal jury in Greenbelt convicted a Maryland man today of preparing false tax returns on behalf of his clients.
According to court documents and evidence presented at trial, Ronald Eugene Watson, also known as Sabir Muhammad, owned and operated SW Accounting Associates, a tax return preparation business located in Largo. From 2015 through 2017, Watson willfully prepared and filed tax returns on behalf of his clients reporting to the IRS false information, including fictitious or overstated business expenses and sham unreimbursed employee expenses. The false deductions reduced clients’ tax liability, often resulting in large, inflated refunds to which they were not entitled. According to witness testimony, Watson varied his preparation fees depending on the amount of the refund requested, with fees typically ranging from approximately $500 up to approximately $1,500.
Watson is scheduled to be sentenced on June 13, 2023, and faces a maximum penalty of three years in prison for each false return count, as well as a period of supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS-Criminal Investigation are investigating the case.
Trial Attorney Matthew L. Cofer of the Justice Department’s Tax Division and Assistant United States Attorney G. Michael Morgan, Jr. of the District of Maryland are prosecuting the case.
Leader of International Drug Trafficking Organization Pleads Guilty to Cocaine Trafficking ConspiracyRead the Press Release
The leader of an international drug trafficking organization pleaded guilty yesterday to international cocaine trafficking conspiracy.
According to court documents, between 1998 and approximately 2012, Jaime Antonio Mandujano Eudave, 61, worked with the Sinaloa Cartel, to transport cocaine. Mandujano Eudave coordinated the transportation of cocaine by boat from Colombia to Culiacan, Los Cabos, and elsewhere in Mexico. He communicated GPS coordinates to the boat’s crew members to facilitate a meeting in the Pacific Ocean. There, the cocaine-laden boat from Colombia would meet another boat under the control of the Sinaloa Cartel and offload the cocaine. These boats transported multi-kilogram amounts of cocaine. Once the cocaine arrived in Mexico, other members of Sinaloa Cartel would transport the cocaine to the United States for sale. Mandujano Eudave knew that the cocaine subsequently would be transported into the United States for further distribution.
In August 2014, Spanish authorities arrested Mandujano Eudave at the request of the United States. He was extradited from Spain to the United States in February 2015.
Mandujano Eudave pleaded guilty to one count of conspiracy to distribute five kilograms or more of cocaine, knowing and intending that it would be imported into the United States. He is scheduled to be sentenced on June 15 and faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Special Agent in Charge Ivan J. Arvelo of the Homeland Security Investigations (HSI) New York Field Office made the announcement.
The Organized Crime and Drug Enforcement Task Force (OCDETF) supported this case.
The HSI New York Field Office is investigating the case with assistance from the DEA Phoenix Field Division.
Trial Attorneys Kirk Handrich and Melanie Alsworth of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) are prosecuting the case. The Justice Department’s Office of International Affairs also provided significant assistance.
The NDDS thanks Spanish authorities for their assistance in securing the arrest and extradition of Mandujano Eudave.
Justice Department’s Ongoing Section 8 Enforcement Prevents More Potentially Illegal Interlocking DirectoratesRead the Press Release
The Justice Department announced today that five more directors resigned from four corporate boards and one company declined to exercise board appointment rights in response to the Antitrust Division’s enforcement efforts around Section 8 of the Clayton Act (Section 8). Section 8, which Congress made a per se violation of the antitrust laws, prohibits directors and officers from serving simultaneously on the boards of competitors, subject to limited exceptions. Today’s announcement brings the number of interlocks unwound or prevented as a result of the division’s recent efforts to at least thirteen directors from ten boards.
“Enforcement of Section 8 will continue to be a focus for the division just as Congress intended,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “We will continue to enforce the antitrust laws when necessary to address illegal board interlocks.”
The following companies and directors unwound interlocks or declined to appoint board members, without admitting liability:
- Qualys, Inc., SumoLogic, Inc., and F5, Inc. – Qualys, SumoLogic, and F5 are providers of cloud security assessments, audit and compliance services, and firewall and monitoring products and services. One director served simultaneously on the boards of all three companies. After the division expressed concerns about the alleged interlock, the director recently resigned from Qualys’s board and declined to stand for reelection to F5’s board.
- N-able, Inc., Dynatrace, Inc., and SolarWinds Corp. – N-able, Dynatrace, and SolarWinds are software companies. Representatives of the investment firm Thoma Bravo sat on all three companies’ boards. As the department previously announced in October 2022, three Thoma Bravo representatives resigned from the SolarWinds’s board in response to the division’s concerns about the alleged interlock between Dynatrace and SolarWinds. Shortly thereafter, in November 2022, two separate Thoma Bravo designees resigned from the N-able board.
- Brookfield Asset Management Inc. and American Equity Investment Life Holding Company (AEL) – AEL and a Brookfield Asset Management subsidiary’s wholly-owned company American National are both insurance companies. Brookfield and/or its subsidiary appointed the officers or directors on the American National board. Additionally, the Brookfield subsidiary has the contractual right to appoint a director to the AEL board, and in December 2022, the Brookfield subsidiary announced that it would exercise that right. After the division raised concerns regarding the potential interlock, the Brookfield subsidiary announced it had changed course and it was withdrawing its proposed nomination to the AEL board.
- Sun Country Airlines Holdings, Inc. and Atlas Air Worldwide Holdings, Inc. – Sun Country and Atlas Air both provide crew, maintenance, and insurance for domestic air freight routes. In August 2022, an investment group led by Apollo Global Management, Inc. proposed acquiring all of Atlas Air’s outstanding shares. At the time, two Apollo-affiliated individuals sat on the Sun Country board of directors. After the division raised concerns regarding a potential interlock arising from Apollo’s proposed acquisition of Atlas Air, the two Apollo-affiliated directors resigned from the Sun Country board.
Anyone with information about potential interlocking directorates or any other potential violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or [email protected].
Former Wall Street Precious Metal Traders Sentenced for Wire FraudRead the Press Release
Two former Wall Street traders were each sentenced today to one year and one day in prison for engaging in a multi-year fraud scheme to manipulate U.S. commodities markets for publicly traded precious metals futures contracts.
According to court documents, Edward Bases, 61, of New Canaan, Connecticut, a former senior trader employed at Deutsche Bank and Bank of America in New York, and John Pacilio, 59, of New York, a former senior trader employed at Bank of America and Morgan Stanley in New York, fraudulently pushed market prices up or down by placing large “spoof” orders in the precious metals futures markets that they did not intend to fill. Bases and Pacilio did so to manipulate prices for their own gain and the banks’ gain, and to defraud other traders on the Commodity Exchange Inc. and the New York Mercantile Exchange Inc., both of which are exchanges run by the CME Group Inc.
Bases and Pacilio also taught other traders how to engage in the practice of spoofing. As a result of Bases and Pacilio’s scheme, other market participants were induced to trade at prices, quantities, and times that they otherwise would not have traded.
On Aug. 4, 2021, Bases and Pacilio were convicted at trial of conspiracy to commit wire fraud affecting a financial institution and multiple counts of wire fraud affecting a financial institution. Pacilio also was convicted of commodities fraud.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI New York Field Office investigated the case.
Deputy Chief Avi Perry, Assistant Chief Scott Armstrong, and Trial Attorney John J. Liolos of the Criminal Division’s Fraud Section prosecuted the case.
Department of Justice Fiscal Year 2024 Funding RequestRead the Press Release
Note: Read the Department of Justice FY2024 Budget Fact Sheets here.
Today, the President submitted to Congress his Budget for Fiscal Year 2024 (FY24), which requests a total of $39.7 billion in discretionary resources, an increase of $2.3 billion, or 6 percent, over the Fiscal Year 2023 enacted level, and $9.7 billion in mandatory funding for the Department of Justice.
“The Justice Department’s mission is to uphold the rule of law, keep our country safe, and protect civil rights,” said Attorney General Merrick B. Garland. “This increase in resources to our law enforcement agencies, U.S. Attorney’s Offices, and litigating and grantmaking components will enable us to build on our efforts to fulfill that mission. The Department will put these resources to work in communities across the country -- including to combat violent crime and gun violence, address the deadly fentanyl crisis, counter threats to our national security, investigate and prosecute hate crimes, safeguard voting rights, address environmental harm, advance economic fairness, and uphold the rule of law.”
Key investments to keep our country safe include:
- More than $21 billion in investments to expand the capacity of the Department’s law enforcement and U.S. Attorneys’ Offices to keep our country safe from a wide range of complex and evolving threats, including $11.3 billion for the FBI and $2.9 billion for the U.S. Attorneys’ Offices to carry out their complex mission sets, including keeping our country safe from violent crime, cybercrime, hate crimes, terrorism, espionage, and the proliferation and potential use of weapons of mass destruction. The budget also includes:
- $11.4 billion to tackle violent crime.
- $2.7 billion for the Drug Enforcement Administration (DEA) to continue the fight against dangerous drug trafficking gangs and cartels and to prevent the flow of deadly drugs into our communities. This includes $19 million in enhancements for the DEA and $696 million in grants for the Office of Justice Programs (OJP), and the Office of Community Oriented Policing Services (COPS) to continue the fight against dangerous drug trafficking organizations, and doubles grant programs, including two new programs aimed at protecting America’s youth and identifying the next generation of psychoactive substances.
- $1.9 billion for the U.S. Marshals Service (USMS) to assist local law enforcement in apprehending violent fugitives from our neighborhoods and to protect our nation’s judges and courts.
- $1.9 billion for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) for reducing gun violence and violent crime.
- Almost $7.7 billion for national security programs, including $32.7 million in program increases to expand the Department’s ability to counter terrorism and keep pace with rising national security threats, while protecting civil rights and civil liberties, and $179.7 million in program enhancements to support the Department’s efforts to respond to cybersecurity and cyber threats.
- $939.3 million to protect the most vulnerable by enforcing human smuggling laws, combating child exploitation, combatting gender-based discrimination and harassment, and protecting victims of violence and abuse.
- $300 million in mandatory funding over three years for COVID fraud enforcement.
- $1.5 billion in critical investments to support the Justice Department’s mission of protecting civil rights, including:
- $261 million to preserve, protect, and defend civil rights. The request prioritizes advancing racial justice, promoting equity for underserved communities, and enforcing civil rights across the Nation. This funding will support police reform, provide for the prosecution of hate crimes across the nation, defend voting rights, and other important civil rights activities.
- $89 million to support the department’s Body Worn Camera Initiative.
- $300 million for the Office of Justice Programs Accelerating Justice System Reform initiative to provide states the tools and incentives to address existing drivers of correctional rates, racial disparities, and adverse outcomes for civilians.
- $446 million for Office on Violence Against Women programs to combat domestic/dating violence, sexual assault, and stalking and support survivors.
- $84 million in critical investments to uphold the Rule of Law, including:
- $8 million to enforce federal law related to voting. This funding would expand the Civil Rights Division’s ability to address language access obligations, rebuild enforcement capacity, and address violations of the National Voter Registration Act. The division will also expand its ability to review and resolve potential violations of the National Voting Rights Act.
- $21 million for Judicial Security and Protective Operations for the United States Marshals Service to enhance protective operations by funding two full-time protective services details to support high-threat mitigation throughout the Judicial and Executive Branches.
- More than $21 billion in investments to expand the capacity of the Department’s law enforcement and U.S. Attorneys’ Offices to keep our country safe from a wide range of complex and evolving threats, including $11.3 billion for the FBI and $2.9 billion for the U.S. Attorneys’ Offices to carry out their complex mission sets, including keeping our country safe from violent crime, cybercrime, hate crimes, terrorism, espionage, and the proliferation and potential use of weapons of mass destruction. The budget also includes:
United States Obtains Warrant for Seizure of Airplane Owned by Russian Oil Company Valued at More Than $25 MillionRead the Press Release
The United States today announced the unsealing of a warrant for the seizure of a Boeing 737-7JU aircraft owned by PJSC Rosneft Oil Company (Rosneft), a Russian integrated energy company headquartered in Moscow, Russia, headed by Igor Ivanovich Sechin. The U.S. District Court for the Eastern District of New York authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of the Export Control Reform Act (ECRA) and the recent sanctions issued against Russia.
According to court documents, in response to Russia’s invasion of Ukraine, in February 2022, the U.S. Department of Commerce’s Bureau of Industry and Security issued sanctions against Russia. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception for aircraft owned or controlled, or under charter or lease, by Russia and/or Russian nationals. In this case, these sanctions bar a plane that was built or manufactured in the United States from entering Russia without a valid license.
Specifically, since February 2022, when the export controls that bar the United States-built plane’s re-entry to Russia went into effect, the plane has left and reentered Russia at least seven times, in violation of federal law. The Boeing jet, which was manufactured in the United States, was last in the United States in March 2014, and is currently believed to be in, or traveling to or from, Russia.
Rosneft – which is headed by Igor Ivanovich Sechin – owns the Boeing aircraft. The Boeing was flown from a foreign country to Russia in violation of the ECRA and regulations issued thereunder, including the Russia sanctions. The Boeing (pictured below) is believed to be worth approximately $25 million.
The United States today announced the unsealing of a warrant for the seizure of a Boeing 737-7JU aircraft owned by PJSC Rosneft Oil Company (Rosneft), a Russian integrated energy company headquartered in Moscow, Russia, headed by Igor Ivanovich Sechin. The U.S. District Court for the Eastern District of New York authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of the Export Control Reform Act (ECRA) and the recent sanctions issued against Russia.
According to court documents, in response to Russia’s invasion of Ukraine, in February 2022, the U.S. Department of Commerce’s Bureau of Industry and Security issued sanctions against Russia. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception for aircraft owned or controlled, or under charter or lease, by Russia and/or Russian nationals.
The FBI and Department of Commerce are investigating the seizure matter. The Justice Department’s Office of International Affairs provided valuable assistance.
The government’s case is being investigated by the Eastern District of New York’s International Narcotics and Money Laundering Section and the Criminal Division’s Money Laundering and Asset Recovery Section. Assistant U.S. Attorney Francisco J. Navarro, Tara B. McGrath and Madeline M. O’Connor, and Trial Attorney Barbara Levy are leading the seizure matter.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
The burden to prove forfeitability in a forfeiture proceeding is upon the government.
Philadelphia Woman Sentenced to 100 Months in Prison for Operating Fraudulent Debt Relief SchemeRead the Press Release
A Philadelphia woman was sentenced today to 100 months in prison for conspiring to defraud the IRS and assisting others in filing false income tax returns.
On July 16, 2021, Yolonda Thompson, also known as Qhama Al, and a co-conspirator, Albert Upshur, also known as Kelinde Jaha, were found guilty at a bench trial of conspiring to defraud the IRS and assisting in the preparation of false tax returns. According to court documents and evidence presented at trial, between 2009 and 2015, Thompson and Upshur attempted to obtain millions of dollars for themselves and other participants in a fraudulent debt relief scheme they referred to as the Debt Payoff Process. As part of the scheme, Thompson and Upshur formed the Yolonda Denise Thompson Living Trust (the “Thompson Trust”). Participants in the Debt Payoff Process were told that if they paid money to Upshur and filed tax returns and other documents Thompson prepared for them, they could access funds from the Thompson Trust to pay off their mortgages and other debts. The tax returns that Thompson prepared, and participants filed with the IRS, claimed refunds to which they were not entitled. In total, the scheme sought more than $325 million in fraudulent refunds, of which the IRS paid out $1,511,236.
The evidence at trial also established that after the IRS began to investigate the Debt Payoff Process, Thompson and Upshur attempted to obtain money from the IRS by other fraudulent means, including using checks drawn on closed bank accounts and trying to use financial instruments such as fictitious bonds. The defendants also continued to file false tax returns for themselves and others after the IRS assessed civil penalties against them and notified them that they were under criminal investigation.
In addition to the term of imprisonment, U.S. District Judge Wendy Beetlestone ordered Thompson to serve three years of supervised release. Upshur was previously sentenced to seven years in prison for his role in the scheme.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. He thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania, which provided support in the investigation and prosecution of this case.
IRS-Criminal Investigation investigated the case.
Trial Attorney Melissa S. Siskind, who serves as National Director of the Tax Division’s Tax Defier Initiative, prosecuted the case.
Onceavo acusado sentenciado por estafar a miles de inmigrantes estadounidenses de habla hispana en un esquema de $15 millones de dólaresRead the Press Release
Un hombre de California fue sentenciado a 65 meses de prisión por su papel en la conspiración en centros de llamadas con sede en Perú que defraudaron a residentes estadounidenses de habla hispana, que los amenazaba falsamente con arresto, deportación y otras consecuencias legales. Es el onceavo acusado en ser sentenciado a prisión en el esquema.
De acuerdo con documentos judiciales, Luis Rendón, 60, de Harbor City, California, operaba en un centro de distribución que ayudaba a operadores del centro de llamadas a ejecutar un esquema de fraude desde Perú. Formaba parte de un esquema de fraude internacional centrado en defraudar residentes de habla hispana en Estados Unidos amenazándolos fraudulentamente con consecuencias legales si no pagaban productos de aprendizaje del idioma inglés (productos que las víctimas nunca solicitaron) o si no pagaban “tarifas de liquidación” falsas. Defraudaron a más de 30,000 residentes de habla hispana de Estados Unidos.
“Estos casos demuestran que la Rama de Protección al Consumidor perseguirá enérgicamente y procesará a los delincuentes internacionales que defraudan a los consumidores estadounidenses vulnerables”, dijo el Fiscal General Principal Adjunto, General Brian M. Boynton, jefe de la División Civil del Departamento de Justicia. “Las personas que defraudan a miembros de nuestras comunidades de inmigrantes se presentarán ante la justicia y rendirán cuentas ante los tribunales estadounidenses”.
“El Servicio de Inspección Postal de Estados Unidos trabaja arduamente para interrumpir y desmantelar las empresas delictivas dirigidas a los consumidores estadounidenses”, dijo Juan A. Vargas, Inspector a Cargo, División del Servicio de Inspección de Estados Unidos en Miami. “Junto con nuestros socios encargados de que se cumpla la ley, estamos enviando un claro mensaje a los delincuentes que crean que están a salvo porque no se encuentran en Estados Unidos: Continuaremos persiguiendo, arrestando y extraditando firmemente a quienes estén centrados en defraudar a los consumidores estadounidenses”.
Según documentos judiciales, Rendón era dueño y operaba International Latin Market, un centro de distribución con sede en California que facilitó el esquema de extorsión y fraude de telemercadeo a gran escala desde el 2011 hasta finales del 2017. Rendón ayudó y fue cómplice del esquema al proporcionar listas de posibles víctimas a los centros de llamadas en Perú, procesó pagos de tarjetas a las víctimas y envió tabletas con cursos de inglés precargados a las víctimas en el área de Miami y en todo Estados Unidos. Los centros de llamadas luego amenazaban y hostigaban a las víctimas para que pagaran clases fraudulentas, pretendiendo ser abogados y agentes del orden.
Con la sentencia de hoy, ya fueron sentenciados siete operadores y propietarios de centros de llamadas peruanos y cuatro operadores de centros de distribución que procesaron pagos y facilitaron el frauden en Estados Unidos. Los siete acusados, propietarios y operadores del centro de llamadas fueron extraditados de Perú y se declararon culpables de conspiración para cometer fraude postal y electrónico en un tribunal federal y recibieron importantes sentencias a prisión. El Juez Federal de Distrito, Robert N. Scola Jr., condenó a Henrry Milla, Carlos Espinoza, Jerson Rentería, Fernán Huerta, Omar Cuzcano, Evelyng Milla y Josmell Espinoza a sentencias que van de 88 a 110 meses en prisión. Dos acusados que facilitaron las operaciones de estos centros de llamadas fraudulentos, Milagros Urmeneta y Gonzalo Bazán, fueron sentenciados el año pasado por un asunto relacionado. Ángel Adrianzen, quien también operaba un centro de distribución con sede en Estados Unidos que facilitó un grupo adicional de centros de llamadas peruanos fraudulentos que estafaron a residentes de habla hispana en Estados Unidos, fue sentenciado a 121 meses en prisión por el Juez Scola en 2021.
El Servicio de Inspección Postal de Estados Unidos y la Rama de Protección al Consumidor investigaron el caso. El Abogado Superior Litigante, Phil Toomajian, y el Abogado Litigante, Max Goldman, de la Rama de Protección al Consumidor, están procesando los casos y la Fiscal Federal Adjunta, Annika Miranda, se encarga del decomiso de bienes. La Comisión Federal de Comercio, la Oficina de Asuntos Internacionales del Departamento de Justicia, la Oficina del Fiscal Federal del Distrito Sur de Florida, el Servicio de Seguridad Diplomática del Departamento de Estado y la Policía Nacional de Perú proporcionaron asistencia crítica.
El Departamento de Justicia continúa investigando y presentando cargos en otros asuntos similares relacionados con amenazas contra residentes de habla hispana en Estados Unidos. Si usted, o alguien que conoce, tiene 60 años o más y fue víctima de fraude financiero, tiene ayuda disponible en la Línea Directa Nacional de Fraude a Ancianos: 1-833-FRAUD-11 (1-833-372-8311).
Puede encontrar información adicional sobre la Rama de Protección al Consumidor y sus esfuerzos para combatir el fraude en www.justice.gov/civil/consumer-protection-branch.
Justice Department Finds Civil Rights Violations by the Louisville Metro Police Department and Louisville/Jefferson County Metro GovernmentRead the Press Release
Following a comprehensive investigation, the Justice Department announced today that the Louisville Metro Police Department (LMPD) and the Louisville/Jefferson County Metro Government (Louisville Metro) engage in a pattern or practice of conduct that violates the U.S. Constitution and federal law. The Department also announced that it has entered into an agreement in principle with Louisville Metro and LMPD, which have committed to resolving the department’s findings through a court-enforceable consent decree with an independent monitor, rather than contested litigation.
Specifically, the Justice Department finds that LMPD:
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Uses excessive force, including unjustified neck restraints and the unreasonable use of police dogs and tasers;
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Conducts searches based on invalid warrants;
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Unlawfully executes search warrants without knocking and announcing;
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Unlawfully stops, searches, detains, and arrests people during street enforcement activities, including traffic and pedestrian stops;
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Unlawfully discriminates against Black people in its enforcement activities;
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Violates the rights of people engaged in protected free speech critical of policing; and
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Along with Louisville Metro, discriminates against people with behavioral health disabilities when responding to them in crisis.
The Department also identified deficiencies in LMPD’s response to and investigation of domestic violence and sexual assault, including its responses to allegations that LMPD officers engaged in sexual misconduct or domestic violence. Deficiencies in policies, training, supervision, and accountability contribute to LMPD and Louisville Metro’s unlawful conduct.
“The Justice Department has concluded that there is reasonable cause to believe that Louisville Metro and LMPD engage in a pattern or practice of conduct that violates the constitutional rights of the residents of Louisville — including by using excessive force, unlawfully discriminating against Black people, conducting searches based on invalid warrants, and violating the rights of those engaged in protected speech critical of policing,” said Attorney General Merrick B. Garland. “This unacceptable and unconstitutional conduct erodes the community trust necessary for effective policing. It is also an affront to the vast majority of officers who put their lives on the line to serve Louisville with honor. And it is an affront to the people of Louisville who deserve better. The Justice Department will work closely with Louisville Metro and LMPD to negotiate toward a consent decree and durable reforms that protect both the safety and civil rights of Louisville’s residents.”
“The findings are deeply troubling and sobering, and they compromise LMPD’s ability to serve and protect the people of Louisville,” said Associate Attorney General Vanita Gupta. “We are committed to working with Louisville on a path forward to constitutional policing and stronger police-community trust. Although police reform won’t happen overnight, focused effort and sustained commitment will bring us closer to transformed relationships, safe communities, and this nation’s promise of justice and equality under the law.”
“People in Louisville deserve policing that is constitutional, fair and non-discriminatory,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “Our investigation found that the police department and city government failed to adequately protect and serve the people of Louisville, breached the public’s trust, and discriminated against Black people through unjustified stops, searches, and arrests. The police used excessive force, subjecting people to unlawful strikes, tasings, and canine bites. The police sought search warrants without justification and carried out no-knock warrants unlawfully, evading the constitution, defying federal law, and putting ordinary citizens in harm’s way. Today marks a new day and a new chapter for the people of Louisville.”
LMPD and Louisville Metro cooperated fully with the department’s investigation. The Justice Department provided a comprehensive, written report of its investigative findings to Louisville Metro and LMPD. The report acknowledges the changes already made by Louisville Metro and LMPD, and it identifies additional remedial measures that the department believes are necessary to fully address its findings.
The Department of Justice opened this investigation on April 26, 2021. The investigation was conducted by career attorneys and staff in the Civil Rights Division and the U.S. Attorney’s Office for the Western District of Kentucky. The investigation included numerous onsite tours; interviews of LMPD officers, supervisors, and command staff; ride-alongs; review of thousands of documents; and review of thousands of hours of body-worn camera footage. Department attorneys and staff also met with community members, advocates, service providers, and other stakeholders in the Louisville Metro area.
The department conducted this investigation pursuant to the 34 U.S.C. § 12601 (Section 12601), which prohibits law enforcement officers from engaging in a pattern or practice of conduct that deprives people of rights protected by the Constitution or federal law, the Safe Streets Act of 1968, Title VI of the Civil Rights Act of 1964, and Title II of the Americans with Disabilities Act.
The findings announced today are the result of the department’s civil pattern or practice investigation and are separate from the department’s criminal cases against former LMPD officers for federal crimes related to the tragic death of Breonna Taylor. These findings are also separate from the department’s ongoing investigation into the Commonwealth of Kentucky under the Americans with Disabilities Act. Additional information can be found at: www.justice.gov/opa/pr/justice-department-launches-civil-rights-investigation-kentucky-s-mental-health-service-0.
The department will be conducting outreach to members of the Louisville community for their views on remedies to address the department’s findings. Individuals may also submit recommendations by email at [email protected] or by phone at 1-844-920-1460.
This is one of eight investigations into law enforcement agencies opened by the Justice Department’s Civil Rights Division under Section 12601 during this Administration. The department has ongoing investigations into the Minneapolis Police Department; the Phoenix Police Department; the Mount Vernon (NY) Police Department; the Louisiana State Police; the New York City Police Department’s Special Victims Division; the Worcester (MA) Police Department; and the Oklahoma City Police Department.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the Western District of Kentucky is available at www.justice.gov/usao-wdky.
Information specific to the Civil Rights Division’s police reform work can be found here: www.justice.gov/crt/file/922421/download.
The Justice Department will hold a virtual community meeting at 7:00 p.m. ET. Members of the public are encouraged to attend to learn more about the findings. Please join the meeting via this link www.zoomgov.com/webinar/register/WN_pmezYy52QZusNmr_nLPRAA.
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Eleventh Defendant Sentenced in $15 Million Scheme to Defraud Thousands of Spanish-Speaking United States ImmigrantsRead the Press Release
A California man was sentenced to 65 months in prison for his role in conspiring with Peruvian-based call centers that defrauded Spanish-speaking United States residents by falsely threatening them with arrest, deportation, and other legal consequences. He is the eleventh defendant to be sentenced to prison in the scheme.
According to court documents, Luis Rendon, 60, of Harbor City, California, operated a distribution center that helped the call center operators execute their fraud scheme from Peru. He was part of a $15 million transnational fraud scheme aimed at defrauding Spanish-speaking residents of the United States by fraudulently threatening them with legal consequences if they did not pay for English-language learning products (products that the victims had never requested) or pay bogus “settlement fees.” More than 30,000 Spanish-speaking residents of the United States were defrauded.
“These cases demonstrate that the Consumer Protection Branch will vigorously pursue and prosecute transnational criminals who defraud vulnerable U.S. consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Individuals who defraud members of our immigrant communities will be brought to justice and held accountable in U.S. courts.”
“The U.S. Postal Inspection Service works assiduously to disrupt and dismantle criminal enterprises targeting U.S. consumers,” said Juan A. Vargas, Inspector in Charge, U.S. Postal Inspection Service Miami Division. “Together with our law enforcement partners, we are sending a clear message to the criminals who think they are safe because they are not located in the U.S.: We will continue to aggressively pursue, arrest, and extradite those that aim to defraud U.S. consumers.”
According to court documents, Rendon owned and operated International Latin Market, a California-based distribution center that facilitated the large-scale telemarketing fraud and extortion scheme from 2011 until late 2017. Rendon aided and abetted the scheme by providing lists of prospective victims to the call centers in Peru, processing card payments from victims, and sending low-quality computer tablets pre-loaded with English language courses to victims in the Miami area and across the United States. The call centers then threatened and harassed victims to pay for the fraudulent classes, pretending to be lawyers and law enforcement officials.
With today’s sentencing, seven Peruvian call center owner-operators and four distribution center operators who processed payments and facilitated the fraud in the United States have now been sentenced. The seven call center owner-operator defendants were extradited from Peru and pleaded guilty in federal court to conspiracy to commit mail and wire fraud and received significant prison sentences. U.S. District Judge Robert N. Scola, Jr. sentenced Henrry Milla, Carlos Espinoza, Jerson Renteria, Fernan Huerta, Omar Cuzcano, Evelyng Milla, and Josmell Espinoza to sentences ranging from 88 months to 110 months in prison. Two defendants who facilitated the operations of these fraudulent call centers, Milagros Urmeneta and Gonzalo Bazan, were sentenced in a related matter last year. Angel Adrianzen, who similarly operated a U.S.-based distribution center that facilitated an additional group of fraudulent Peruvian call centers that defrauded Spanish-speaking residents in the United States, was sentenced to 121 months in prison by Judge Scola in 2021.
The U.S. Postal Inspection Service and the Consumer Protection Branch investigated the case. Senior Trial Attorney Phil Toomajian and Trial Attorney Max Goldman of the Consumer Protection Branch are prosecuting the cases, and Assistant United States Attorney Annika Miranda is handling asset forfeiture. The Federal Trade Commission, the Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, the State Department’s Diplomatic Security Service and the Peruvian National Police provided critical assistance.
The Department of Justice continues to investigate and bring charges in other similar matters involving threats against Spanish-speaking residents of the United States. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).
Additional information about the Consumer Protection Branch and its fraud enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.
Detroit-area Mortgage Broker Charged with Conspiring to Defraud the IRS and Filing False Tax ReturnsRead the Press Release
A federal grand jury in Detroit returned an indictment yesterday charging a Michigan man with conspiring to defraud the United States and filing false income tax returns.
According to the indictment, from 2012 to 2018, Todd A. Marra of Shelby Township was a fifty-percent shareholder and co-managing partner of a mortgage brokerage in Troy, Michigan. During that time, Marra and another individual allegedly conspired to defraud the IRS by diverting more than $1.6 million in business proceeds. The indictment alleges that Marra and his coconspirator withdrew cash shortly after depositing checks into the business’s bank account and did not record all deposits and withdrawals on the business’s books and records. Marra and his coconspirator allegedly used these business proceeds to pay for personal expenses and debts and then provided false records to their return preparer that underreported gross receipts and concealed the diversion of funds. The indictment alleges that their actions caused the filing of false partnership returns that substantially underreported the business’s gross receipts and overreported expenses, and also caused the filing of false personal income tax returns that substantially underreported Marra’s income.
If convicted, he faces a maximum penalty of five years in prison for the conspiracy count and a maximum penalty of three years in prison for each false tax return count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Jorge Almonte and Trial Attorney Catriona M. Coppler of the Justice Department’s Tax Division 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.
Department of Justice Announces Review of Memphis Police Department’s Use of Force and De-escalation Policies, and a Separate Review of Specialized Units Across the CountryRead the Press Release
The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) announced today it will be undertaking two important reviews: one related to the Memphis Police Department (MPD) and one that will examine the use of specialized units within law enforcement.
First, the COPS Office, through its Collaborative Reform Initiative Technical Assistance Center (CRI-TAC), will conduct a review of certain policies and practices of the Memphis Police Department. Memphis Mayor Jim Strickland and Memphis Police Chief Cerelyn J. Davis requested this review, which will cover policies, practices, training, data and processes related to MPD’s use of force, de-escalation and specialized units. At the conclusion of the review, the COPS Office will issue a public report outlining its findings and recommendations.
The COPS Office’s CRI-TAC initiative is led and supported by nine leading law enforcement stakeholder associations. CRI-TAC provides a wide array of technical assistance services using a “by the field, for the field” approach. Since its inception in 2017, the program has provided technical assistance for over 800 law enforcement engagements.
Separate from the Memphis review, the COPS Office will produce a guide for police chiefs and mayors across the country to help them assess the appropriateness of the use of specialized units as well as how to ensure necessary management and oversight of such units, including review of policies, tactics, training, supervision, accountability, and transparency.
“In the wake of Tyre Nichols’s tragic death, the Justice Department has heard from police chiefs across the country who are assessing the use of specialized units and, where used, appropriate management, oversight and accountability for such units. The COPS Office guide on specialized units will be a critical resource for law enforcement, mayors and community members committed to effective community policing that respects the dignity of community members and keeps people safe,” said Associate Attorney General Vanita Gupta. “The department is also pleased to be able to fulfill Memphis’s request for technical assistance on the police department’s use of force and de-escalation policies, as well as the use of specialized units.”
“Providing technical assistance to law enforcement agencies so they can continue to improve their practices, while they also develop and maintain healthy relationships with the community, is at the heart of what we do at the COPS Office,” said Director Hugh T. Clements Jr. of the COPS Office. “I know that this opportunity to work with MPD, as well as our examination of specialized units in law enforcement agencies across the country, will be important resources for both law enforcement and the communities they serve.”
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to over 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 136,000 officers.
Statement from Attorney General Merrick B. Garland on the Attack on Four American Citizens in Matamoros, MexicoRead the Press Release
The Justice Department today issued the following statement from Attorney General Merrick B. Garland on the attack on four American citizens in Matamoros, Mexico:
“Last Friday, four Americans were attacked in Matamoros, Mexico. In the wake of the attack, the FBI immediately contacted our Mexican law enforcement and security partners in an effort to locate the victims.
“The FBI has confirmed that two of the Americans were killed and another injured. The two surviving Americans are now receiving medical treatment in the United States.
“I want to offer my deepest condolences to the families and loved ones of the victims of this heinous attack. The Justice Department will be relentless in pursuing justice on their behalf.
“We will do everything in our power to identify, find, and hold accountable the individuals responsible for this attack on American citizens.”
Justice Department Sues to Block JetBlue’s Proposed Acquisition of SpiritRead the Press Release
The Justice Department, together with Attorneys General of the Commonwealth of Massachusetts, the State of New York, and the District of Columbia, filed a civil antitrust lawsuit today to block JetBlue Airways Corporation’s (JetBlue) proposed $3.8 billion acquisition of its largest and fastest-growing ultra-low-cost rival, Spirit Airlines, Inc. (Spirit). JetBlue and Spirit compete fiercely today on hundreds of routes serving millions of travelers. By eliminating that competition and further consolidating the United States airlines industry, the proposed transaction will increase fares and reduce choice on routes across the country, raising costs for the flying public and harming cost-conscious fliers most acutely.
The complaint, filed in the District of Massachusetts, alleges that Spirit’s low-cost, no-frills flying option has brought lower fares and more options to routes across the country, making it possible for more Americans – particularly price sensitive consumers who pay their own fares – to travel. JetBlue’s acquisition of Spirit would eliminate the “Spirit Effect,” where Spirit’s presence in a market forces other air carriers, including JetBlue, to lower their fares. The deal also would eliminate half of the ultra-low-cost capacity in the United States. This will lead to higher fares and fewer seats, harming millions of consumers on hundreds of routes.
“As our complaint alleges, the merger of JetBlue and Spirit would result in higher fares and fewer choices for tens of millions of travelers, with the greatest impact felt by those who rely on what are known as ultra-low-cost carriers in order to fly,” said Attorney General Merrick B. Garland. “Companies in every industry should understand by now that this Justice Department will not hesitate to enforce our antitrust laws and protect American consumers.”
“Our complaint alleges that JetBlue’s acquisition of Spirit would particularly hurt cost-conscious travelers,” said Associate Attorney General Vanita Gupta. “Ultra-low-cost carriers make air travel possible so more Americans can take a much-needed family vacation or celebrate or mourn together with loved ones. We allege that the proposed merger would lead to fewer seats and higher prices for travelers.”
“JetBlue’s proposed acquisition of Spirit eliminates a disruptive, low-cost option for millions of Americans. Whether they fly Spirit or not, travelers throughout the United States benefit from an independent Spirit because where Spirit competes, other airlines – including JetBlue – are forced to compete more vigorously by lowering fares, offering greater innovations, and delivering more consumer choice,” said Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department's Antitrust Division. “This transaction occurs against the backdrop of years of airline consolidation in the United States.”
The complaint, which seeks to block the acquisition under Section 7 of the Clayton Act, alleges Spirit has been a particularly disruptive force, growing rapidly, introducing innovative products, and allowing customers to choose which services to purchase, all while charging customers very low fares. Spirit has forced larger airlines, particularly the already-low-cost JetBlue, to compete for customers by introducing unbundled, customizable ticket options and lowering their own fares, allowing more Americans to travel. If the acquisition is allowed to proceed, prices would increase on routes where the two airlines currently compete. This is particularly the case on the over 40 direct routes where the two companies’ combined market shares are so high that the deal is presumptively anticompetitive.
As further alleged in the complaint, in the last 10 years, Spirit has doubled its network in size and, before this deal, expected to continue expanding at a quick pace. The acquisition stops this future competition before it starts.
The acquisition would also make it easier for the remaining airlines to coordinate to charge travelers higher fares or limit capacity. JetBlue has already partnered with American Airlines, the largest airline in the world, through the Northeast Alliance, which the Department sued to block. Now, JetBlue is doubling down on consolidation, seeking to acquire and eliminate its main ultra-low-cost competitor, depriving travelers of yet another choice.
If allowed to eliminate the Spirit option, JetBlue would likely increase prices on every route where Spirit flies today. As a result, travelers who previously preferred Spirit’s lower-price, no-frills service would either have to pay more for amenities they do not want, or may no longer be able to afford to travel at all.
JetBlue is a Delaware corporation headquartered in Long Island City, New York. In 2022, it flew over 39 million passengers to approximately 107 destinations around the world, earning about $9.1 billion in revenue.
Spirit is a Delaware corporation headquartered in Miramar, Florida. In 2022, it flew over 38 million passengers to approximately 92 destinations in the Americas, earning about $5 billion in revenue.
Man Charged with Bank RobberyRead the Press Release
NEW ORLEANS – CLEMENT LEACH, age 52, of New Orleans, Louisiana, was indicted on one count of Bank Robbery in violation of Title 18, United States Code, Section 2113(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, on Monday, March 2, 2020, LEACH robbed Chase Bank and obtained approximately $920. If convicted, LEACH faces a maximum of twenty years in the Federal Bureau of Prisons, up to a $250,000 fine, up to three years of supervised release following his release from prison and a mandatory $100 special assessment fee.
United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation’s Violent Crime Task Force and officers of New Orleans Police Department. Assistant U.S. Attorney Jon M. Maestri of the General Crimes Unit is handling the prosecution.
Fort Washakie Man Sentenced for Assault Resulting in Substantial Bodily Injury to a Person Under the Age of 16Read the Press Release
United States Attorney Nicholas Vassallo announced today that Chief United States District Court Judge Scott Skavdahl sentenced LESLIE FRANK NOSEEP, III, age 20, of Fort Washakie, Wyoming, to six months in prison for assault resulting in substantial bodily injury to a person under the age of 16. The sentence includes three years of supervised release, restitution in the amount of $458.96 and a $100 special assessment.
On September 10, 2022, Noseep was driving on Old Wind River Highway on the Wind River Indian Reservation while intoxicated. Noseep swerved into the oncoming lane of travel and struck a 14-year-old boy who was riding his skateboard on the side of the road. The boy suffered deep lacerations on his knees and calf. Noseep fled the scene and was later apprehended by law enforcement.
This crime was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Kerry Jacobson prosecuted the case.
Case No. 22-cr-00100-SWS
Readout of Assistant Attorney General Kristen Clarke’s Trip to Selma, AlabamaRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Selma, Alabama, over the weekend to commemorate the 58th anniversary of Bloody Sunday and meet with local organizations about the Justice Department’s commitment to civil rights and racial justice.
This morning, Assistant Attorney General Clarke spoke at the Martin and Coretta King Unity Breakfast at Wallace Community College in Selma, Alabama, reflecting on the painful history of Bloody Sunday and enumerating the Justice Department’s recent enforcement work to defend the civil rights of all people.
She said, “To quote Dr. King: ‘Selma, Alabama, became a shining moment in the conscience of man. If the worst in American life lurked in its dark streets, the best of American instincts arose passionately from across the nation to overcome it.’ The Civil Rights Division at the Justice Department is driven by that same belief. We are committed to defending the civil rights of all people in our country.” Read her full remarks here.
Later that morning, she spoke at a worship service hosted by the historic Brown Chapel African Methodist Episcopal Church. She said, “John Lewis may not be with us today, but … we all know that he fought the good fight. Today, our charge – indeed our sacred mission – is to pick up the baton that he has handed us and continue the fight for justice. The commemoration of Bloody Sunday is a moment to redouble our efforts to ensure that every American has voice in our democracy…” Read her full remarks here.
In the afternoon, Assistant Attorney General Clarke crossed the Edmund Pettus Bridge with a delegation of U.S Attorneys and hundreds of people, including civil rights leaders, distinguished clergy, elected officials and residents of Alabama.
On Monday, Assistant Attorney General Clarke will travel to Montgomery, Alabama, to meet with the U.S. Attorneys of the Attorney General’s Advisory Committee Civil Rights Subcommittee, the Equal Justice Initiative, and other civil rights stakeholders.
Assistant Attorney General Kristen Clarke speaks at the Martin and Coretta King Unity Breakfast. Assistant Attorney General Kristen Clarke speaks at the Sunday Morning Worship Service hosted by Brown Chapel African Methodist Episcopal Church.
Assistant Attorney General Kristen Clarke and U.S. Attorneys from across the country. Districts represented: Massachusetts, Connecticut, New Jersey, South Carolina, Colorado, Nevada, Montana, Idaho, South Dakota, Western and Middle Districts of Louisiana, Eastern District of Wisconsin, Eastern and Western Districts of Michigan, Middle District of Florida, Northern and Eastern Districts of California, Eastern District of Pennsylvania, Western District of Virginia, Western District of North Carolina, Southern District of Ohio, Eastern District of New York and the Southern District of West Virginia.United States Obtains Permanent Injunctions and Civil Penalties in Actions against California, Georgia, and Utah Distributors of Essential Oils and Nutritional SupplementsRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today announced the entry of stipulated orders for permanent injunction and civil penalty judgments against three distributors in relation to their allegedly deceptive COVID-19 claims made when marketing essential oils and nutritional supplements.
Tina Wong, a pediatrician based in California, Eliza Johnson Bacot, a nurse practitioner based in Georgia, and Lauren Busch, a former registered nurse based in Utah, each agreed to pay $15,000 in civil penalties and to permanent injunctive relief to resolve allegations involving deceptive COVID-19 claims made in connection with their marketing of essential oils and nutritional supplements. The stipulated orders resolve lawsuits the government filed in the U.S. District Courts for the Central District of California (Wong), Northern District of Georgia (Bacot), and District of Utah (Busch).
According to the court filings, the defendants are or were distributors for doTERRA International, LLC, a Utah-based multi-level marketing company that sells essential oils, supplements, and other products. The government alleged that, in public webinars that took place in January 2022, each defendant represented that products promoted and offered for sale prevent, reduce the risk or severity of, or cure COVID-19 and long-haul COVID-19 and counteract purported negative effects of COVID-19 vaccinations. Among the many deceptive claims that the government alleged that defendants made were: that the company’s chewable products help prevent children from contracting COVID-19 (Wong); that inhaling essential oils inhibit spike proteins (Busch) and viral replication (Bacot); that certain essential oils prevent the binding of the virus to human cells and help prevent one from contracting COVID-19 (Wong); that certain of the company’s products minimize inflammation from long-haul COVID-19 (Busch); and that the company’s supplements reduce purported negative health effects of COVID-19 vaccinations (Busch). The government alleged that no published report of any well-controlled human clinical study substantiates defendants’ COVID-19-related claims.
The COVID-19 Consumer Protection Act, enacted in December 2020, makes it unlawful, for the duration of the COVID-19 public health emergency, to engage in a deception in commerce associated with the treatment, cure, prevention, mitigation, or diagnosis of COVID 19. Persons who violate the COVID-19 Consumer Protection Act may be subject to civil penalties, injunctive relief, and other remedies available under the Federal Trade Commission Act.
The stipulated orders bar each defendant from making COVID-19 prevention, treatment, or cure claims for any product or service, except for claims specifically approved by the Food and Drug Administration. Further, the orders require that any disease treatment, mitigation, or cure claims that each defendant makes in connection with the marketing of any food, drug, or dietary supplement be supported by a randomized, double-blind, and placebo-controlled human clinical trial and that competent and reliable scientific evidence substantiate other health benefit and efficacy claims that each defendant makes when promoting or selling any food, drug, or dietary supplement. Each defendant also agreed to be enjoined from misrepresenting the results of any study regarding the efficacy of a food, drug, or dietary supplement.
“The Department of Justice remains vigilant in its efforts to stem the deceptive promotion of supposed COVID-19 treatments that have no proven benefits in combatting the disease,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue working with our law enforcement and agency partners to stop those who seek financial gain by peddling unproven cures for COVID-19.”
The Federal Trade Commission (FTC) referred these cases and the stipulated orders to the Department of Justice. The cases were handled by attorneys in the Civil Division’s Consumer Protection Branch, including Senior Litigation Counsel Christina Parascandola and Trial Attorney Zachary Dietert and Assistant Director Gabriel H. Scannapieco, in conjunction with attorneys at the FTC’s Bureau of Consumer Protection/Division of Advertising Practices.
The claims made in the complaints are allegations that the United States would have to prove if the cases had proceeded to trial.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors and assists agencies tasked with administering relief programs to prevent fraud by, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.ftc.gov.
Two Maui Men Sentenced for Racially Motivated Attack on White ManRead the Press Release
Two men from the Hawaiian island of Maui were sentenced in federal court for their racially motivated attack on C.K., a white man who was attempting to move into their neighborhood of Kahakuloa.
Kaulana Alo-Kaonohi, 33, was sentenced to 78 months in prison. Levi Aki Jr., 33, was sentenced to 50 months in prison.
“The defendants in this case nearly killed a man because they believed he did not belong in their neighborhood because of the color of his skin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The law protects everyone in this country from racially motivated violence, and these sentences send a strong message that such violence will not be tolerated.”
“No one should suffer the violence, cover up and injustice the defendants wrought in this case,” said U.S. Attorney Clare E. Connors for the District of Hawaii. “All persons have a right to freedom from violence motivated by racial hatred, and the Department is committed to ensuring that right is protected in a court of law.”
“This horrific violence was motived by nothing other than hate,” said Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office. “The FBI is committed to ensuring those who perpetrate such injustices are held accountable and that civil rights are respected and protected for all.”
At trial, the evidence showed that the victim, C.K., purchased a house in Kahakuloa and decided to move there with his wife and three daughters after his wife was diagnosed with multiple sclerosis and forced to retire. When C.K. arrived in Kahakuloa, he was harassed and threatened by various Kahakuloa residents who told him things like, “This is a Hawaiian village. The only thing coming from the outside is the electricity,” and “You don’t even belong in Hawaii.”
On Feb. 13, 2014, when C.K. was unpacking his belongings with his elderly uncle, the defendants, who had never met C.K. before, stormed onto his property and demanded that he pack his things and leave, threatening to “tie [him] up and drag [him]” and make him “go missing” if he did not comply. When C.K. replied that he owned the house, Alo-Kaonohi dragged his index finger along C.K.’s jaw and told him, “Your skin is the wrong f****** color.” Aki then picked up a roofing shovel and handed it to Alo-Kaonohi, who struck C.K. in the head with it, opening up a bloody wound on the back of C.K.’s head. Later on, after C.K. had already begun packing up his possessions, the defendants attacked him a second time. During that attack, Aki head butted C.K. and struck him in the face with the shovel a second time, giving C.K. a concussion and causing him to lose consciousness. When he came to, the defendants were kicking him in the side and broke two of his ribs. During the second attack, one of the defendants said, “no white man is ever going to live here.”
At the sentencing hearing, the government introduced evidence that just months after his unprovoked attack on C.K., Alo-Kaonohi committed a similar unprovoked attacked on a white-skinned man at the Steel Horse Saloon, a bar in Wailuku, Maui. In that attack, Alo-Kaonohi approached the victim from behind, tapped him on the shoulder and then punched him repeatedly in the head until he was unconscious. The victim sustained a large gash on his head that required seven staples to close and suffered permanent brain damage.
Assistant Attorney General Clarke, U.S. Attorney Connors and Special Agent in Charge Merrill made the announcement.
The FBI Honolulu Field Office conducted the investigation.
Assistant U.S. Attorney Chris Thomas for the District of Hawaii and Special Litigation Counsel Christopher J. Perras and Trial Attorney Tara Allison of the Civil Rights Division’s Criminal Section prosecuted the case.
Readout of Deputy Attorney General Lisa Monaco’s Trip to FloridaRead the Press Release
Yesterday, Deputy Attorney General (Deputy AG) Lisa Monaco traveled to Florida to highlight the Department of Justice’s wide-ranging efforts to pursue equal justice under the rule of law, including by combatting corporate crime and by ensuring the right to counsel for all criminal defendants.
The Deputy AG delivered the annual E. Lawrence Barcella Jr. Memorial Address at the American Bar Association's 38th Annual National Institute on White Collar Crime. In her speech, she discussed the progress the Justice Department has made in implementing the corporate criminal enforcement policy changes that she directed last September. She also announced the Justice Department’s first-ever pilot program on compensation incentives and clawbacks, to align executives and all employees’ financial incentives with corporate compliance.
The Deputy AG also announced that the Justice Department will be surging resources to respond to the increasing intersection of corporate crime and national security threats by adding over 25 new prosecutors to investigate and prosecute these violations. You can read her full remarks here.
While in Miami, the Deputy Attorney General and the department’s Director of the Office for Access to Justice (ATJ), Rachel Rossi, as well as U.S. Attorney for the Southern District of Florida, Markenzy Lapointe, met with leaders of the federal and state public defenders offices and indigent defense advocates to launch the Justice Department’s cross-country National Public Defense Day Tour in honor of the 60th anniversary of Gideon v. Wainwright, guaranteeing the right to counsel to anyone accused of a crime. The meeting in Miami kicked off ATJ’s “six stops for the Sixth Amendment” to elevate the importance of and appreciation for public defense services.
In highlighting the significance of launching this tour in Florida, the Deputy AG recalled her experience working for Attorney General Janet Reno, a former Miami-Dade State Attorney, who as Attorney General convened a historic National Symposium on Indigent Defense in 1998 on the 36th anniversary of Gideon to highlight the role of the Justice Department in strengthening indigent defense services. To carry that commitment forward, the Deputy Attorney General announced the launch of a comprehensive, 100-day review of current practices and policies to improve access to counsel at BOP pretrial facilities.
On her trip, the Deputy AG visited the U.S. Attorney’s Office for the Southern District of Florida, where she met with U.S. Attorney Markenzy Lapointe and his leadership team, as well as the prosecutors and professional staff of the office. She thanked them for their hard work and dedication. She also met with state, local and federal law enforcement leaders to emphasize the importance of the ongoing partnerships in tackling violent crime and other public safety challenges.
Finally, the Deputy AG visited Federal Correctional Institute Miami to meet the Warden and staff, review their operations, and ensure implementation of BOP’s dual mission of providing safe, humane custody while also preparing individuals for a return to society.
Deputy Attorney General Lisa Monaco with Leslie CaldwellReadout of Attorney General Merrick B. Garland’s Trip to UkraineRead the Press Release
On Friday, March 3, the Attorney General made an unannounced trip to Lviv, Ukraine, at the invitation of Ukrainian Prosecutor General to join international partners at the “United for Justice Conference.” The Attorney General reaffirmed our determination to hold Russia accountable for crimes committed in its unjust and unprovoked invasion of Ukraine. The conference provided a forum to discuss specific initiatives and measures that the international community, alongside Ukraine, is taking to comprehensively seek justice and accountability for all those responsible for war crimes and atrocities in Ukraine.
At the Opening Session of the conference, the Attorney General provided remarks in which he discussed, among other things, the Justice Department’s role in collaborating with the Ukrainian Prosecutor General and the moral and personal responsibility he feels in pursuing accountability.
“Just over twelve months ago, invading Russian forces began committing atrocities at the largest scale in any armed conflict since the Second World War. We are here today in Ukraine to speak clearly, and with one voice: the perpetrators of those crimes will not get away with them,” said Attorney General Garland. “In addition to our work in partnership with Ukraine and the international community, the United States has also opened criminal investigations into war crimes in Ukraine that may violate U.S. law. Although we are still building our cases, interviewing witnesses, and collecting evidence, we have already identified specific suspects. Our prosecutors are working day and night to bring them to justice as quickly as possible.”
This trip is an important part of the Department of Justice’s unwavering commitment to the freedom of Ukraine.
That commitment takes two forms:
- A determination to hold Russia accountable for war crimes committed in its unjust invasion, through the investigations and other work of the Department of Justice’s War Crimes Accountability Team; and
- Our ongoing work to seize illicit Russian assets for the benefit of the people of Ukraine, and to prosecute those who facilitate the evasion of sanctions imposed on Russia, through Task Force KleptoCapture.
The Attorney General’s presence in Ukraine is thus not only symbolic, but strategic as well — since it serves the purpose of driving forward the operational work of the War Crimes Accountability Team and Task Force KleptoCapture.
In addition, the United States became the first country to sign a memorandum of understanding (MOU) with the seven-member Joint Investigative Team (JIT) that is investigating Russian atrocities in Ukraine. The MOU, signed by the Attorney General, will facilitate the United States’ cooperation and coordination with the JIT members as we collect evidence and investigate Russia’s atrocity crimes. It also signals our resolve that Russia’s invasion will not undermine our collective commitment to uphold human rights and preserve a free and democratic society.
At the conference, the Attorney General also met with Ukrainian President Zelenskyy, U.S. Ambassador to Ukraine Brink, Ukrainian Prosecutor General Kostin, EU Commissioner Reynders, Polish Minister of Justice General Ziobro, and Polish National Public Prosecutor Barski, regarding operational cooperation on Russian war crimes and illicit finance and to further discussions about how the U.S. can partner internationally on these issues.
In sum, this conference both signals our joint resolve that Russia’s invasion will not undermine our collective commitment to preserving a free and democratic world and charts the way forward for our practical work to achieve that goal.
Photo Credit: U.S. Embassy in Ukraine Attorney General Merrick B. Garland shakes hands with Ukrainian President Zelenskyy Photo Credit: U.S. Embassy in Ukraine Attorney General Merrick B. Garland meets with Ukrainian President Zelenskyy. Photo Credit: U.S. Embassy in Ukraine Attorney General Merrick B. Garland and Ukrainian Prosecutor General Andriy Kostin sign a Memorandum of Understanding with the with the seven-member Joint Investigative Team. Photo Credit: President Zelenskyy's OfficeJustice Department Sues Jacksonville, North Carolina-based Goines Towing Company for Violating Rights of ServicemembersRead the Press Release
The Justice Department today filed a lawsuit in the Eastern District of North Carolina alleging that Billy Joe Goines, the owner and operator of Goines Towing & Recovery (Goines), auctioned off, sold or otherwise disposed of motor vehicles owned by servicemembers using court judgments obtained without filing proper military affidavits, in violation of federal law.
The Servicemembers Civil Relief Act (SCRA) provides a wide variety of financial and housing protections to members of the military. For example, it requires plaintiffs seeking a default judgment in court to file an accurate military affidavit stating whether or not the defendant is in military service, or that the plaintiff is unable to determine the defendant’s military service status. The SCRA also requires that that towing companies seeking court orders in civil proceedings make a good faith effort to determine whether a defendant is in military service. If it appears that the defendant is in military service, the court may not enter a default judgment in favor of the plaintiff until after it appoints an attorney to represent the interests of the servicemember.
The complaint alleges that since at least 2017, Goines disposed of motor vehicles belonging to servicemembers after either failing to file, or filing inaccurate, military affidavits in court proceedings against those servicemembers. The complaint further alleges that Goines filed military affidavits stating that he did not know whether the defendants were in military service even though many of the motor vehicles were originally towed from locations on or near the Camp Lejeune military installation, and there were multiple indications that the vehicles were owned by individuals in military service.
“By failing to file, or filing ‘rubber stamp’ affidavits without doing due diligence to determine a vehicle owner’s military service status, this company unlawfully auctioned off, sold, or otherwise disposed of servicemembers’ vehicles in violation of federal law,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “This conduct is especially egregious because many of the vehicles were towed from a military bases, had military decals, patches, and decorations, were financed through lenders geared towards members of the military, and contained military uniforms and paperwork, including orders. This lawsuit helps ensure that these servicemembers receive compensation for these actions and puts all towing companies on notice that such unlawful business practices will not be tolerated.”
“Our troops put their lives on the line to secure our freedom, and should never have to deal with unscrupulous tow truck operators unlawfully taking and selling their vehicles,” said U.S. Attorney Michael Easley for the Eastern District of North Carolina. “Our troops fight for our freedom abroad, and we will zealously fight for their rights here at home. Predatory conduct against members of our military is unacceptable, especially in North Carolina, one of the most military-friendly states in the nation. We stand with our troops, and insist that they be treated with the respect they deserve.”
In addition to seeking damages for the aggrieved servicemembers, including the value of the vehicles auctioned, sold or otherwise disposed of by Goines, the Justice Department’s complaint seeks to enjoin the company from failing to file, or filing inaccurate, military affidavits in the future. The lawsuit also seeks a civil penalty. This lawsuit resulted from a referral to the Justice Department from U.S. Marine Corps legal assistance.
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 http://legalassistance.law.af.mil/.
The Justice Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the Justice Department has obtained over $481 million in monetary relief for over 123,000 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.
The complaint contains allegations of unlawful conduct, and the allegations must be proven in federal court.
Justice Department Announces Application Form for Marijuana Pardon CertificatesRead the Press Release
Today, the Justice Department is launching an application for eligible individuals to receive certificate of proof that they were pardoned under the Oct. 6, 2022, proclamation by President Biden. On Oct. 6, 2022, the President announced a full, unconditional and categorical pardon for prior federal and D.C. offenses of simple possession of marijuana. The President’s pardon lifts barriers to housing, employment and educational opportunities for thousands of people with those prior convictions. President Biden directed the Justice Department to develop a process for individuals to receive their certificate of pardon.
The online application will be available on the Office of the Pardon Attorney’s website: Application for Certificate of Pardon. The web form allows eligible persons to submit documentation to the Office of the Pardon Attorney and receive a certificate indicating the person was pardoned on Oct. 6, 2022, for simple possession of marijuana.
The President’s pardon, effective Oct. 6, 2022, may assist pardoned persons by removing civil or legal disabilities — such as restrictions on the right to vote, to hold office or to sit on a jury — that are imposed because of the pardoned conviction. The application released today may also be helpful as proof of pardon for those who seek to obtain licenses, bonding or employment. As President Biden said at the time of the proclamation, his action intends to “help relieve the consequences arising from these convictions.”
Those who were pardoned on Oct. 6, 2022, are eligible for a certificate of pardon. Consistent with the proclamation, to be eligible for a certificate, an applicant must have been charged or convicted of simple possession of marijuana in either a federal court or D.C. Superior Court, and the applicant must have been lawfully within the United States at the time of the offense. Similarly, an individual must have been a U.S. citizen or lawful permanent resident on Oct. 6, 2022.
Those who were convicted of state marijuana offenses do not qualify for the pardon.
The department is committed to carefully and expeditiously reviewing the applications and issuing certificates to those pardoned under the proclamation. For more information regarding eligibility and answers to frequently asked questions, please visit Presidential Proclamation on Marijuana Possession.
Florida’s Lakeland Regional Medical Center Agrees to Pay $4 Million to Settle Common Law Allegations for Impermissible Medicaid DonationsRead the Press Release
Lakeland Regional Medical Center (LRMC) in Lakeland, Florida, has agreed to pay the United States $4 million to resolve allegations that it made donations to a local unit of government to improperly fund the state’s share of Medicaid payments to LRMC.
The Florida Medicaid program provides medical assistance to low-income individuals and individuals with disabilities, and is jointly funded by the federal and state governments. Under federal law, Florida’s share of Medicaid payments must consist of state or local government funds, and may not come from “non-bona fide donations” from private health care providers, such as hospitals. A non-bona fide donation is a payment — in cash or in kind — from a private provider to a governmental entity that is then returned to the private provider through a payment by Medicaid. Because Medicaid services are reimbursed jointly by the federal and state governments, a non-bona fide donation causes federal expenditures to increase without any corresponding increase in state expenditures, since the state share of the Medicaid payments to the provider comes from and is returned to the provider. The prohibition of this practice ensures that states are in fact paying a share of Medicaid payments and thus have an incentive to curb Medicaid costs and prevent unnecessary services.
The United States alleged that, between October 2014 and September 2015, LRMC made improper, non-bona fide donations to Polk County, Florida by assuming and paying certain of Polk County’s financial obligations to other healthcare providers. These donations were designed to increase Medicaid payments received by LRMC, by freeing up funds for the County to make payments to the State as the state share of Medicaid payments to LRMC. This state share was “matched” by the federal government before being returned to LRMC as Medicaid payments. The Medicaid payments LRMC received were thus funded by the federal government and LRMC’s own donations, in violation of the prohibition on non-bona fide donations.
“When private parties make improper donations to fund the state share of Medicaid, they undermine a key safeguard for ensuring the integrity of the Medicaid program,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Medicaid expenditures should be determined by beneficiaries’ medical needs rather than by donations by private hospitals to local units of government.”
“Protecting the Medicaid program is crucial, as millions of Floridians rely on it for their medical care and related services,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We are committed to ensuring that government funds are used for their intended purposes and are not improperly obtained.”
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 Middle District of Florida, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The matter was handled by Fraud Section Attorneys Alison B. Rousseau and Jonathan T. Thrope and Assistant U.S. Attorney Carolyn B. Tapie.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Two U.S. Citizens Arrested for Illegally Exporting Technology to RussiaRead the Press Release
Two Kansas men were arrested today on charges related to a years-long scheme to circumvent U.S. export laws that included the illegal export of aviation-related technology to Russia after Russia’s unprovoked invasion of Ukraine on Feb. 24, 2022, and the imposition of stricter restrictions on exports to Russia.
According to the indictment, Cyril Gregory Buyanovsky, 59, of Lawrence, and Douglas Robertson, 55, of Olathe, owned and operated KanRus Trading Company, which supplied Western avionics equipment (i.e., electronics installed in aircraft) to Russian companies and provided repair services for equipment used in Russian-manufactured aircraft. Since 2020, the defendants conspired to evade U.S. export laws by concealing and misstating the true end users, value and end destinations of their exports and by transshipping items through third-party countries. For example, between November 2020 and February 2021, the defendants received avionics equipment, including a computer processor bearing a sticker identifying Russia’s Federal Security Services (FSB), from a Russian company for repair in the United States. The defendants concealed the true end user and end destination by providing a fraudulent invoice to the shipment company identifying the end destination as Germany.
As further alleged, on Feb. 28, 2022, the defendants attempted to export avionics to Russia. U.S. authorities detained the shipment, and the U.S. Department of Commerce informed the defendants that a license was required to export the equipment to Russia. In an April 2022 communication, Robertson expressed to a Russia-based customer that “things are complicated in the USA” and that “[t]his is NOT the right time for [more paperwork and visibility].” Subsequently, in May, June and July 2022, the defendants illegally transshipped avionics through Armenia and Cyprus to Russia without obtaining the required licenses.
The defendants are charged with conspiracy, exporting controlled goods without a license, falsifying and failing to file electronic export information, and smuggling goods contrary to U.S. law. If convicted, they face a maximum penalty of 20 years in prison for each count of exporting controlled goods without a license; up to 10 years in prison for each count of smuggling; and up to five years in prison for each count of conspiracy and falsifying export information. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Task Force KleptoCapture Director Andrew C. Adams, U.S. Attorney Duston J. Slinkard for the District of Kansas, Assistant Director Alan E. Kohler Jr. of the FBI Counterintelligence Division, Special Agent in Charge Charles Dayoub of the FBI Kansas City Field Office, and Special Agent in Charge Aaron Tambrini of the U.S. Department of Commerce Office of Export Enforcement, Chicago Field Office made the announcement.
The FBI and the U.S. Department of Commerce, Office of Export Enforcement are investigating the case.
Assistant U.S. Attorneys Scott Rask and Ryan Huschka for the District of Kansas and Trial Attorney Adam Barry of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022 and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Men Sentenced in $30M Foreign Exchange Fraud SchemeRead the Press Release
A Massachusetts man and a Florida man were sentenced for their roles in perpetrating a foreign exchange trading scheme to steal $30 million from their investor victims.
Patrick Gallagher, 45, of Middleborough, Massachusetts, was sentenced to five years in prison on Feb. 21 and Michael Dion, 50, of Orlando, Florida, was sentenced to four years and seven months in prison today.
According to court documents, Gallagher and Dion devised a scheme in which they would solicit victims to invest in their foreign exchange company, Global Forex Management, by promising them large returns based on previous trading results that they had fabricated. They told the victims that their funds would be traded using an online trading platform provided by a co-conspirator’s company, IB Capital. Instead, Gallagher and Dion were working with other co-conspirators in the Netherlands to steal the victim investors’ money. In May 2012, Gallagher and Dion executed their scheme by intentionally creating losing trades for the investors and effectively stole approximately $30 million from their victims. After fabricating the massive trading loss, Gallagher and Dion routed the stolen money through shell companies they had set up all over the world.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.
The USPIS investigated the case.
Trial Attorneys Vasanth Sridharan, Tian Huang, and Brittain Shaw of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Individuals or entities who believe they may be a victim in this case should contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected].
Justice Department and European Commission Announces Resumption of U.S. and EU Negotiations on Electronic Evidence in Criminal InvestigationsRead the Press Release
The U.S. Department of Justice and the European Commission today announced the resumption of negotiations on an EU-U.S. agreement to facilitate access to electronic evidence in criminal investigations. Officials from the U.S. Department of Justice, U.S. Department of State, and European Commission plan to meet in Stockholm, Sweden, on March 15 and 16 prior to the EU-U.S. Justice and Home Affairs Senior Officials Meeting taking place in Stockholm on March 16 and 17. Negotiation started in September 2019 but was paused while the European Union finalized the EU e-Evidence legislation.
Justice Department Secures Settlement in Sexual Harassment Lawsuit Against Michigan LandlordRead the Press Release
The Justice Department announced today that it has secured an agreement to resolve a lawsuit alleging that landlord Darrell Jones of Muskegon, Michigan, violated the Fair Housing Act by sexually harassing female tenants. The settlement also resolves claims against Fatima Jones and Jones Investing, LLC, which, along with Jones, owned the properties where the alleged harassment occurred.
“The Fair Housing Act protects the rights of tenants to live in peace and security without the fear that their housing provider will sexually harass them,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to holding housing providers accountable for their unlawful behavior and seeking relief for survivors.”
“The sexual harassment of tenants is an intolerable abuse of power that violates federal civil rights laws,” said U.S. Attorney Mark A. Totten for the Western District of Michigan. “No one should have to endure harassment and discrimination, especially in their own homes. My office is committed to protecting the rights of vulnerable tenants and will continue to vigorously enforce the Fair Housing Act to combat discrimination and secure justice for victims.”
Under the agreement, which still must be approved by the U.S. District Court for the Western District of Michigan, defendants are required to pay $155,000 to compensate individuals harmed by the harassment and pay a $10,000 civil penalty to the United States. The consent order also requires the defendants to:
- Retain an independent property manager to manage their rental properties for the duration of the order;
- Obtain fair housing training; and
- Implement non-discrimination policies and complaint procedures to prevent sexual harassment at their properties in the future.
The lawsuit, filed in June 2020, alleged that since at least 2008, Jones subjected female tenants to harassment that included making repeated and unwelcome sexual comments, touching tenants’ bodies without their consent, demanding sexual activity in exchange for rent and housing-related benefits and taking adverse actions against tenants who resisted his sexual advances or complained about the harassment.
This case was referred to the Justice Department by the Fair Housing Center of West Michigan and was litigated by attorneys in the department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of Michigan.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the department’s initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 28 lawsuits alleging sexual harassment in housing and recovered more than $9.8 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online