District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Justice Department's Environment and Natural Resources Division Releases Accomplishments Report for Fiscal Year 2021Read the Press Release
The Department of Justice’s Environment and Natural Resources Division (ENRD) today released its Accomplishments Report for Fiscal Year (FY) 2021. The report highlights ENRD’s strong enforcement of our nation’s environmental and natural resources laws, efforts to advance environmental justice and role in our nation’s response to the climate crisis.
“I am proud to serve alongside the remarkable attorneys and staff who dedicate their professional lives to advancing the interests of the American people in environmental and natural resource matters,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “ENRD has an incredibly important mission to protect public health and welfare by enforcing the nation’s environmental laws, safeguarding our breathtaking landscapes and precious natural resources, preserving the rights and resources of American Indian and Alaska Native nations, defending federal agency actions and enabling critical infrastructure projects, among other things.”
In 2021, ENRD litigated and won meaningful remedies from polluters who imperiled overburdened communities across the nation, including in America’s heartland, the Southeast, downtown New York City and the U.S. Virgin Islands. Going forward, Assistant Attorney General Kim pledged that ENRD will work “to ensure that all Americans — regardless of race, color, national origin or income — are treated fairly and can engage in the decisions that affect them.”
ENRD also prioritized efforts to combat climate change, as part of the President’s whole-of-government response to the climate crisis. Last year, ENRD brought civil and criminal cases to limit damaging pollution from sources like petroleum facilities and oceangoing vessels. The division also worked to protect natural resources by defending floodplain control projects and cracking down on those who unlawfully fill wetlands, illegally harvest timber and more. The division defended the authority of other federal agencies to take critical steps needed to alleviate the effects of climate change, such as the Environmental Protection Agency’s efforts to limit greenhouse gas emissions from power plants.
In FY21, ENRD worked on more than 4,000 matters. It obtained over $1.5 billion in civil and criminal fines, penalties and costs recovered. It secured federal injunctive relief valued at over $5.1 billion. And through its defensive and condemnation litigation, it saved the United States more than $443 million. ENRD achieved a favorable outcome in 99.4% of its civil enforcement cases, 90.2 percent in its civil defensive cases, 98.9% of its criminal cases and 100% of its condemnation cases.
The achievements described in the report add to ENRD’s storied legacy, which dates back 113 years. Its work is all the more important now, at what Assistant Attorney General Kim called a “pivotal moment in our nation’s history,” for environmental and natural resources issues.
Justice Department Releases over $320 Million in Solicitations for Hiring Law Enforcement Officers, Improving School Safety, and Combating Distribution of Illicit DrugsRead the Press Release
The Justice Department announced today that the Office of Community Oriented Policing Services (COPS Office) and the Office of Justice Programs (OJP) have released over $320 million in grant solicitations for programs that advance community policing, keep school students safe, and combat the production and distribution of illegal drugs.
“The Justice Department is committed to providing our state, local, Tribal, and territorial law enforcement partners with the resources they need to keep our communities safe,” said Attorney General Merrick B. Garland. “With these funds, the Department is supporting law enforcement agencies, as well as the residents they serve, by increasing their capacity to disrupt illegal drug trafficking, hire officers committed to using best practices to serve their communities, and keep children safe in school.”
“These grants represent our commitment to provide law enforcement agencies and the communities they serve with critical resources to make our communities safer for everyone that lives, works, and plays in them,” said Associate Attorney General Vanita Gupta.
The announced solicitations include $156.5 million available for the COPS Hiring Program (CHP), a competitive award program intended to reduce crime and advance public safety through community policing by providing direct funding for the hiring of career law enforcement officers. Anticipated outcomes of the CHP program awards include increased engagement in community partnerships, implementation of projects that focus on prioritized crime issues impacting communities, implementation of changes to personnel and agency management in support of community policing, and increased capacity of agencies to implement comprehensive community policing plans that build trust and reduce crime. All local, state, Tribal, and territorial law enforcement agencies that have primary law enforcement authority are eligible to apply.
Funding also includes $53 million for the School Violence Prevention Program (SVPP). This program provides funding to improve security at schools and on school grounds in the grantees’ jurisdictions through evidence-based school safety programs. Awards will be provided directly to eligible state, local, Tribal, and territorial partners. Recipients of SVPP funding must use funding for the benefit of K-12, primary, and secondary schools and students.
The Department’s Office of Justice Programs — through its Bureau of Justice Assistance and Office of Juvenile Justice and Delinquency Prevention — also released almost $64.7 million in solicitations to support violence prevention and response efforts in schools through the STOP School Violence Act. More information about OJP’s grants can be found at https://www.ojp.gov/funding.
There is also $15 million available for the COPS Anti-Methamphetamine Program (CAMP) and $35 million for the COPS Anti-Heroin Task Force (AHTF) Program. The 2022 COPS Anti-Methamphetamine Program is a competitive grant program that advances public safety by providing funds directly to state law enforcement agencies to investigate illicit activities related to the manufacture and distribution of methamphetamine. AHTF is a competitive grant program that provides funding to state law enforcement agencies in states with high per capita levels of primary treatment admissions for heroin, fentanyl, carfentanil, and other opioids. These funds will be used for drug enforcement including investigations and activities related to the distribution of heroin and other opioids or the unlawful diversion and distribution of prescription opioids.
Additional information on these programs, as well as information on how to apply, can be found at https://cops.usdoj.gov/grants.
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 the communities served. The COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers.
Former Alabama Correctional Sergeant Indicted for Assaulting Inmates and Falsifying ReportRead the Press Release
The Justice Department today announced that a federal grand jury sitting in Montgomery, Alabama, returned a four-count indictment charging former Alabama Department of Corrections (ADOC) Sergeant Lorenzo Mills, 55, with assaulting three compliant inmates with a wooden baton at ADOC’s Draper Correctional Facility. Mills is also charged with falsification of records for submitting a false written statement in connection with the incident.
The indictment alleges that on Oct. 25, 2020, Mills, while acting in his official capacity as a Correctional Sergeant with ADOC, subjected three inmates to cruel and unusual punishment by striking them with a wooden baton, and that the assault caused bodily injury and involved the use of a dangerous weapon. The indictment further alleges that Mills submitted a false written statement in connection with the incident. Specifically, the indictment alleges that Mills falsely wrote in his statement that he had not used any force against the three inmate victims.
Mills faces a statutory maximum sentence of 10 years in prison for each of the civil rights charges and 20 years in prison for the obstruction of justice offense.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Sandra J. Stewart for the Middle District of Alabama made the announcement. This case is being investigated by the FBI’s Mobile Field Division and ADOC’s Law Enforcement Services Division. It is being prosecuted by Assistant U.S. Attorney Eric Counts of the Middle District of Alabama, and Trial Attorneys David Reese and Nikhil Ramnaney of the Civil Rights Division.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Settlement with Recycling Company Will Reduce Release of Ozone Depleting Refrigerants That Contribute to Climate ChangeRead the Press Release
The United States, on behalf of the Environmental Protection Agency (EPA), has reached a proposed settlement with Schnitzer Steel Industries Inc. of Portland, Oregon, to resolve alleged violations of the Clean Air Act and regulations designed to protect stratospheric ozone at 40 scrap metal recycling facilities throughout the United States.
If approved by the court, the settlement will require the company to pay a civil penalty of $1,550,000, implement compliance measures worth over $1,700,000 to prevent the release of ozone-depleting refrigerants and non-exempt substitutes from refrigerant-containing items during their processing and disposal and complete an environmental mitigation project. The complaint filed together with the consent decree alleges that Schnitzer failed to recover refrigerant from small appliances and motor vehicle air conditioners before disposal or to verify from the supplier that the refrigerant had been properly recovered prior to delivery to Schnitzer’s facilities.
“To help protect stratospheric ozone and reduce the risks of climate change, the Department of Justice will seek to ensure companies like Schnitzer comply with the Clean Air Act when recycling appliances and motor vehicles containing harmful refrigerants,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.
“Many refrigerants are potent greenhouse gases that contribute to global warming if released into the atmosphere,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “This settlement will help protect our climate by ensuring that these chemicals are managed properly at 40 recycling facilities across the country.”
Under the settlement, Schnitzer must implement an EPA-approved Refrigerant Recovery Management Program (RRMP) at its 40 U.S. facilities. The RRMP includes, among other things: installation of refrigerant recovery systems at Schnitzer’s facilities; screening procedures for scrap appliances and vehicles; new forms for statements and contracts to verify any refrigerant recovery from appliances and motor vehicles prior to receipt by Schnitzer; notices to customers regarding proper procedures for delivering items currently or previously containing refrigerants; employee training on procedures for ensuring compliance with regulations designed to prevent the release of refrigerants; and recordkeeping and reporting obligations.
The settlement also requires Schnitzer to perform an environmental mitigation project involving the destruction of all R-12 refrigerant in scrapped appliances and automobiles received at its facilities. R-12 contains chlorofluorocarbons and has over 10,000 times the global warming potential of carbon dioxide.
Today’s action was filed by the United States, on behalf of the EPA.
More information:
The proposed consent decree, lodged in the U.S. District Court for the District of Massachusetts, is subject to a 30-day public comment period and approval by the federal court. To view the proposed consent decree or to submit a comment during the public comment period, visit: justice.gov/enrd/consent-decrees
Clean Air Act enforcement: epa.gov/enforcement/air-enforcement
Ozone Protection Under Title VI of the Clean Air Act: epa.gov/ozone-layer-protection/ozone-protection-under-title-vi-clean-air-act
Climate Change: epa.gov/climate-change
Texas Tax Preparer Charged with False ReturnsRead the Press Release
In an indictment unsealed today, a federal grand jury in Del Rio, Texas, indicted a tax return preparer for willfully helping clients file false tax returns with the IRS.
According to the indictment, in 2016 and 2017, Adela Cruz prepared tax returns for her clients that included false education credits, dependent information, and business profits and losses. Cruz allegedly charged the clients between $200 and $500 for each return. Cruz allegedly also falsified her own individual income tax returns for 2015 and 2016, claiming false education credits she was not entitled to receive.
If convicted, Cruz faces a statutory maximum sentence of three years in prison for each count of filing a false tax return for herself and her clients. She also faces 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 Ashley C. Hoff for the Western District of Texas made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Robert A. Kemins and Nicholas J. Schilling, Jr. of the 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.
Physician Indicted in $10 Million Health Care Fraud SchemeRead the Press Release
A New York physician was charged in an indictment unsealed today in the Eastern District of New York for an alleged $10 million health care fraud scheme involving the submission of false and fraudulent claims to Medicare and Medicare Part D plans.
According to court documents, Elemer Raffai, 56, of Rome, between approximately July 2016 and June 2017, allegedly signed prescriptions and order forms via purported telemedicine services for durable medical equipment (DME) that were not medically necessary. Raffai caused these claims to be submitted based solely on a short telephone conversation for beneficiaries he did not physically examine and evaluate and that were induced, in part, by the payments of bribes and kickbacks to Raffai. The indictment further alleges that Raffai, with others, submitted or caused the submission of approximately $10 million in false and fraudulent claims to Medicare for DME, and Medicare paid more than $4 million on those claims.
Raffai is charged with health care fraud. He was arrested and is making his initial court appearance today in the U.S. District Court for the Northern District of New York. If convicted, Raffai faces a maximum total penalty of 10 years 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; U.S. Attorney Breon Peace for the Eastern District of New York; Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Special Agent in Charge Janeen DiGuiseppi of the FBI’s Albany Field Office made the announcement.
HHS-OIG and the FBI investigated the case.
Trial Attorneys Kelly M. Lyons and Andrew Estes of the Criminal Division’s Fraud Section prosecuted 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.
New Jersey Pawn Shop and its Owner Settle False Claims Act Allegations Relating to Paycheck Protection Program LoanRead the Press Release
Daniel Markus Inc., which operated pawn shops in New Jersey, and its owner have agreed to pay $50,000 in civil penalties to settle allegations that the company violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by obtaining more than one Paycheck Protection Program (PPP) loan in 2020. The company also agreed to repay the duplicative PPP loan in full to its lender, relieving the U.S. Small Business Administration (SBA) of liability to the lender for the federal guaranty of approximately $240,000 on the improper loan.
“PPP loans were intended to provide critical relief to small businesses,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to pursuing those who knowingly violated the requirements of the PPP or other COVID-19 assistance programs and obtained relief funds to which they were not entitled.”
“This resolution demonstrates that the department will identify those who took advantage of relief packages meant to help the American people and will take steps to recover ill-gotten funds whenever possible,” said Associate Deputy Attorney General Kevin A. Chambers, the department’s Director of COVID-19 Fraud Enforcement.
“OIG continues to identify and bring to justice anyone who wrongfully obtains benefits from SBA programs,” said Special Agent-in-Charge Amaleka McCall-Brathwaite for SBA Office of Inspector General (OIG). “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
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 the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. Throughout 2020, PPP loan applicants were required to certify that they would not receive more than one PPP loan prior to Dec. 31, 2020. This settlement resolves allegations that Daniel Markus Inc. knowingly and improperly received and retained a second, duplicative PPP loan in 2020.
The settlement with Daniel Markus Inc., and its owner, Margarita Risis, resolved a lawsuit filed under the whistleblower provision of the False Claims Act, 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 civil lawsuit was filed by J. Bryan Quesenberry, and, as part of the resolution, he will receive approximately $3,500 as a share of the False Claims Act recovery.
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 District of New Jersey, with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.
This matter was handled by Trial Attorney Jared S. Wiesner of the Civil Division and Assistant U.S. Attorney David V. Simunovich of the District of New Jersey.
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. Run out of the Office of the Deputy Attorney General, the Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud 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 settlement are allegations only, and there has been no determination of liability.
Justice Department and Baltimore Police Department Provide Progress Report Five Years After Consent DecreeRead the Press Release
The Justice Department today joined the City of Baltimore, the Baltimore Police Department (BPD) and the Court-appointed independent monitoring team to report on the City’s and BPD’s progress toward compliance with the terms of the consent decree designed to ensure effective and constitutional policing in the City.
At today’s public hearing before U.S District Court Chief Judge James K. Bredar, the Justice Department recognized the significant accomplishments that have been achieved including:
- adoption of a problem-oriented approach to policing, prioritizing public safety, crime reduction and lawful patrol and enforcement efforts;
- adoption of a wide range of new policies covering use of force, transport, impartial policing and stops, searches and arrests, that provide clear guidance to officers to ensure effective and constitutional policing;
- revitalization of the training academy, including upgraded facilities, expanded staff and revamped in-service training curricula, including new trainings developed to educate officers on the revised policies;
- revitalization of the internal affairs unit, including expanded staff and new procedures and training to ensure fair and thorough investigations of alleged misconduct and consistent discipline when misconduct takes place;
- creation of auditing procedures to ensure proper supervisory review of use-of-force incidents, scrutiny of arrests that do not result in charges filed against the arrestee, and the use of safe practices in the transportation of individuals in custody; and
- procurement of a new records management system to ensure accurate and consistent incident reporting and case management throughout BPD.
The Justice Department noted that to fully comply with the decree, BPD must show that its officers are consistently and effectively following the new policies and trainings and being held accountable if they do not. In the coming months, the independent monitoring team will conduct detailed assessments of BPD’s compliance with the decree’s requirements regarding the use of force, arrests and sexual assault investigations. These assessments will provide a roadmap for BPD’s continuing efforts to achieve full compliance in these areas.
“The problems at BPD were many years in the making and we are pleased with the progress that has been made since the consent decree was put in place,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “While much work remains, we believe that a strong foundation has been laid to achieve effective and constitutional policing in Baltimore. The citizens of Baltimore deserve nothing less.”
The Justice Department initiated an investigation of BPD in May 2015 under the Violent Crime Control and Law Enforcement Act of 1994. This law authorizes the Attorney General to file a lawsuit to address a pattern or practice of conduct by law enforcement officers that deprives individuals of their rights under the Constitution or federal law. The investigation was conducted by the Civil Rights Division’s Special Litigation Section, and findings were announced in August 2016. The consent decree was approved by the Court in April 2017.
The findings report and consent decree, as well as additional information about the Civil Rights Division, are available on its website at www.justice.gov/crt. Additional information about implementation of the consent decree is also available on the BPD website at www.baltimorepolice.org and the monitoring team’s website at www.bpdmonitor.com. The department welcomes comments or concerns from the community via email at [email protected].
View the consent decree here.
View the consent decree fact sheet here.
View the findings report here.
View the findings summary here.
Former Nevada Business Owner and Salesman Sentenced for Conspiring to Defraud the United StatesRead the Press Release
Two Nevada men were sentenced to prison today for conspiring to defraud the IRS.
Saud Alessa was sentenced to 13 months in prison and Jeffrey Bowen was sentenced to 60 days in prison. After a federal jury trial in November 2021, Alessa and Bowen were both convicted on the conspiracy charge, and Alessa also was convicted on tax evasion and false tax return charges.
According to court documents and evidence presented at trial, from 2010 through approximately March 2014, Alessa, Bowen and another co-conspirator, Jackie Hayes, sought to thwart efforts by the IRS to collect more than $500,000 in tax liabilities owed by Alessa for tax years 1998 to 2007. As part of the scheme, Hayes entered into a payment arrangement with Bowen, the owner of a vacuum cleaner distributor, J&L Distributing Inc. (J&L), where commissions actually earned by Alessa for his work at J&L were falsely recorded in the company’s books as commissions earned by Hayes. Hayes and Bowen then submitted tax forms and filings to the IRS falsely reporting that Hayes had earned the income. This scheme allowed Alessa to evade IRS collection efforts and the payment of his outstanding federal tax debt. To further conceal his income and assets, Alessa filed false 2012 and 2013 individual tax returns, and in February 2013, he filed a bankruptcy petition falsely reporting no income.
In addition to imprisonment, Chief U.S. District Judge Miranda M. Du ordered Alessa and Bowen to each serve three years of supervised release and to pay over $500,000 in restitution to the United States.
Hayes previously pleaded guilty and was sentenced in February 2022 to two months in prison for her role in the conspiracy.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Albert A. Childress of IRS-Criminal Investigation made the announcement. They commended special agents of IRS-Criminal Investigation, which conducted the investigation, and members of the U.S. Trustee Program, which uncovered the charged conduct during the supervision of the administration of a Chapter 7 bankruptcy case filed by Alessa.
Trial Attorneys Michael Landman and Eric Taffet of the Justice Department’s Tax Division prosecuted the case.
Wisconsin Man Charged with Seeking to Intimidate and Interfere with Housing Rights Following Racially-Motivated IncidentsRead the Press Release
A federal criminal complaint was issued charging William A. McDonald, 54, of West Allis, Wisconsin, with using force and threatening to use force to injure, intimidate and interfere with the housing rights of multiple individuals because of their race, color or national origin. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Richard G. Frohling for the Eastern District of Wisconsin made the announcement.
According to a publicly filed complaint, law enforcement has been investigating a series of racially motivated incidents involving property damage and threats of bodily harm unless individuals move from West Allis. The complaint alleges that McDonald violated federal law with respect to one or more of these incidents.
The FBI’s Milwaukee Field Office and the West Allis Police Department are investigating the case. The case is being prosecuted by Assistant U.S. Attorneys Philip Kovoor and Christopher Ladwig for the Eastern District of Wisconsin, in collaboration with Trial Attorney Nikhil Ramnaney for the Civil Rights Division’s Criminal Section.
An indictment is merely an allegation, and the defendant is presumed innocent until proved guilty beyond a reasonable doubt in a court of law.
Stericycle Agrees to Pay over $84 Million in Coordinated Foreign Bribery ResolutionRead the Press Release
Stericycle Inc. (Stericycle), an international waste management company headquartered in Lake Forest, Illinois, has agreed to pay more than $84 million to resolve parallel investigations by authorities in the United States and Brazil into the bribery of foreign officials in Brazil, Mexico, and Argentina.
According to court documents, Stericycle entered into a three-year deferred prosecution agreement (DPA) with the Department of Justice in connection with the filing of a criminal information charging the company with two counts of conspiracy to violate (1) the anti-bribery provision of the Foreign Corrupt Practices Act (FCPA), and (2) the FCPA’s books and records provision. Pursuant to the DPA, Stericycle’s criminal penalty is $52.5 million. The department has agreed to credit up to one-third of the criminal penalty against fines the company pays to authorities in Brazil in related proceedings, including an amount of approximately $9.3 million to resolve investigations by the Controladoria-Geral da União (CGU) and the Advocacia-Geral de União (Attorney General’s Office) in Brazil. In addition, Stericycle has agreed to pay approximately $28 million to resolve a parallel investigation by the U.S. Securities and Exchange Commission (SEC).
“Stericycle today accepted responsibility for its corrupt business practices in paying millions of dollars in bribes to foreign officials in multiple countries,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The company also maintained false books and records to conceal corrupt and improper payments made by its subsidiaries in Brazil, Mexico, and Argentina. Today’s resolution demonstrates the Department of Justice’s continuing commitment to combating corruption and protecting the international marketplace.”
“Today’s resolution with Stericycle shows that the FBI and our international law enforcement partners will not allow corruption to permeate domestic or international markets,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The consequences of violating the FCPA are clear: Companies that bribe foreign officials for business advantage will be held accountable.”
According to the company’s admissions and court documents, Stericycle conspired to corruptly offer and pay approximately $10.5 million in bribes to foreign officials in Brazil, Mexico, and Argentina in order to obtain and retain business and other advantages for Stericycle. The company earned at least $21.5 million in profits from the corrupt scheme.
Specifically, between 2011 and 2016, Stericycle caused hundreds of bribe payments to be made to officials at government agencies and instrumentalities in Brazil, Mexico, and Argentina to obtain and retain business and to secure improper advantages in connection with providing waste management services. In perpetrating the scheme, an executive at Stericycle’s Latin America division directed employees in the company’s offices in Brazil, Mexico, and Argentina who paid bribes, typically in cash, that were calculated as a percentage of the underlying contract payments owed to Stericycle from government customers. In all three countries, the co-conspirators tracked the bribe payments through spreadsheets and described the bribes through code words and euphemisms, such as “CP” or “commission payment” in Brazil; “IP” or “incentive payment” in Mexico; and “alfajores” (a popular cookie) or “IP” in Argentina.
As part of the DPA, Stericycle has agreed to continue to cooperate with the department in any ongoing or future criminal investigations relating to this conduct. In addition, under the DPA, Stericycle agreed to continue to enhance its compliance program and to retain an independent compliance monitor for two years, followed by self-reporting to the department for the remainder of the term.
The government reached this resolution with Stericycle based on a number of factors, including, among others, the company’s failure to voluntarily and timely disclose the conduct that triggered the investigation and the nature, seriousness, and pervasiveness of the offense. Stericycle received full credit for its cooperation with the department’s investigation and engaged in extensive remedial measures. Although Stericycle has taken extensive remedial measures, it has not fully implemented or tested its enhanced compliance program, necessitating the imposition of an independent compliance monitor for a term of two years. Accordingly, the criminal penalty reflects a 25% reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range.
In a related civil matter in the United States, Stericycle has agreed to pay disgorgement and prejudgment interest totaling approximately $28 million to resolve an investigation by the SEC. In related proceedings in Brazil, the company has agreed to resolve investigations by the CGU and the Attorney General’s Office.
The FBI’s New York Field Office is investigating the case. Trial Attorneys Paul A. Hayden and Jil Simon of the Criminal Division’s Fraud Section are prosecuting the case. Authorities in Brazil and Mexico provided assistance in this matter, as did the Justice Department’s Office of International Affairs.
The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
New Jersey Man Charged with Federal Hate Crimes for String of Violent Assaults on Members of Orthodox Jewish CommunityRead the Press Release
A New Jersey man was charged with federal hate crimes for a series of violent assaults on members of the Orthodox Jewish community in and around Lakewood, New Jersey. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey announced today.
Dion Marsh, 27, of Manchester, is charged with four counts of violating the federal Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act and one count of carjacking. With respect to the hate crimes violations, Marsh is charged with willfully causing bodily injury to four victims, and attempting to kill and cause injuries with dangerous weapons to three of them, all because they were Jewish. Marsh is in custody on related state charges and will make his initial appearance on the federal charges on a date to be determined.
According to documents filed in this case and statements made in court:
At 1:18 p.m. on April 8, Marsh forced a visibly identifiable Orthodox Jewish man out of his car in Lakewood, assaulting and injuring him in the process. Marsh took control of the man’s car and drove away. A surveillance video in the area captured Marsh arriving in the area prior to the carjacking and assault.
At 6:06 p.m., Marsh was in Lakewood driving a different car when he deliberately struck another visibly identifiable Orthodox Jewish man with the vehicle, causing the victim to suffer several broken bones.
At 6:55 p.m., Marsh, once again driving the vehicle that he had stolen from the first victim, used it to deliberately strike another visibly identifiable Orthodox Jewish man who was walking in Lakewood. Marsh got out of the vehicle and stabbed the man in the chest with a knife, causing significant injuries.
At 8:23 p.m., Marsh, still driving the vehicle that he had stolen from the first victim, used it to deliberately strike another visibly identifiable Orthodox Jewish man who was walking in nearby Jackson Township, New Jersey, causing the man to suffer several broken bones and internal injuries.
At approximately 12:00 a.m. on April 9, law enforcement officers arrested Marsh at his residence.
The three hate crimes violations charging Marsh with attempting to kill those victims each carry a statutory maximum term of life in prison and a $250,000 fine. The hate crime violation charging Marsh with assaulting the other victim carries a statutory maximum term of 10 years in prison and a $250,000 fine. The carjacking charge carries a statutory maximum term of 15 years in prison and a $250,000 fine.
Assistant Attorney General Clarke and U.S. Attorney Sellinger credited special agents of the FBI Newark Field Division, Red Bank Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.; officers of the Lakewood Police Department, under the direction of Chief of Police Gregory H. Meyer; officers of the Jackson Township Police Department, under the direction of Chief of Police Matthew Kunz; officers of the Ocean County Sheriff’s Office, under the direction of Sheriff Michael G. Mastronardy; prosecutors and detectives of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko for the U.S. Attorney’s Office’s Civil Rights Division.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Justice Department Finds Conditions at Mississippi State Penitentiary Violate the ConstitutionRead the Press Release
The Justice Department concluded today, based upon a thorough investigation, that there is reasonable cause to believe that conditions and practices at the Mississippi State Penitentiary (also known as Parchman) violate the Eighth and Fourteenth Amendments to the U.S. Constitution. Assistant Attorney General Kristen Clarke of the Civil Rights Division, U.S. Attorney Clay Joyner for the Northern District of Mississippi and U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi made the announcement.
Specifically, the department concluded that there is reasonable cause to believe Mississippi routinely violates the constitutional rights of people incarcerated at Parchman by:
- failing to provide adequate mental health treatment to people with serious mental health needs;
- failing to take sufficient suicide prevention measures to protect people at risk of self-harm;
- subjecting people to prolonged isolation in solitary confinement in egregious conditions that place their physical and mental health at substantial risk of serious harm; and
- failing to protect incarcerated people from violence at the hands of other incarcerated people.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the Justice Department provided the state of Mississippi with written notice of the supporting facts for these findings and the minimum remedial measures necessary to address them in a comprehensive 59-page findings letter.
“The Constitution guarantees that all people incarcerated in jails and prisons are treated humanely, that reasonable measures are taken to keep them safe, and that they receive necessary mental health care, treatment, and services to address their needs,” said Assistant Attorney General Clarke. “Our investigation uncovered evidence of systemic violations that have generated a violent and unsafe environment for people incarcerated at Parchman. We are committed to taking action that will ensure the safety of all people held at Parchman and other state prison facilities. We look forward to working with state officials to institute comprehensive reforms.”
“Prisons have a constitutional obligation to keep safe the incarcerated persons who depend on them for their basic needs,” said U.S. Attorney Joyner. “Mississippi violated the rights of persons incarcerated at Parchman by failing to keep them safe from physical violence and for failing to provide constitutionally adequate mental health care and that people confined to Parchman experience serious physical and psychological harm as a result. Our office is dedicated to defending the civil rights of all our district’s residents, including those who are incarcerated. We look forward to continuing to work with the Mississippi Department of Corrections to protect the civil rights of those incarcerated at Parchman.”
“The action taken today by the Department of Justice will ensure that the Mississippi State Penitentiary at Parchman fulfills its constitutional obligations,” said U.S. Attorney LaMarca. “Those obligations extend to reasonable efforts to provide basic mental health care, prevent violence between incarcerated persons and prevent suicides. Those who owe a debt to society should have these basic needs while paying that debt. We are committed to working with state officials to ensure that the State of Mississippi abides by its constitutional obligations.”
The department’s investigation began in February 2020. Our investigation of conditions at Southern Mississippi Correctional Institution, Central Mississippi Correctional Facility, and Wilkinson County Correctional Facility is ongoing. Individuals with relevant information are encouraged to contact the department by phone at (833) 591-0288, or by email at [email protected].
For more information about the Civil Rights Division and the Special Litigation Section, please visit https://www.justice.gov/crt/special-litigation-section.
Additional information about the Northern and Southern U.S. Attorneys’ Offices is available at: https://www.justice.gov/usao-ndms and https://www.justice.gov/usao-sdms. You can contact the Northern District’s Civil Division at (662) 234-3318, and the Southern District at (601) 965-4480. You can also report civil rights violations to the Section by completing the complaint form available at https://civilrights.justice.gov/.
Justice Department Announces Nationwide Coordinated Law Enforcement Action to Combat Health Care-Related COVID-19 FraudRead the Press Release
The Department of Justice today announced criminal charges against 21 defendants in nine federal districts across the United States for their alleged participation in various health care related fraud schemes that exploited the COVID-19 pandemic. These cases allegedly resulted in over $149 million in COVID-19-related false billings to federal programs and theft from federally-funded pandemic assistance programs. In connection with the enforcement action, the department seized over $8 million in cash and other fraud proceeds.
“The Department of Justice’s Health Care Fraud Unit and our partners are dedicated to rooting out schemes that have exploited the pandemic,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s enforcement action reinforces our commitment to using all available tools to hold accountable medical professionals, corporate executives, and others who have placed greed above care during an unprecedented public health emergency.”
“This COVID-19 health care fraud enforcement action involves extraordinary efforts to prosecute some of the largest and most wide-ranging pandemic frauds detected to date,” said Director for COVID-19 Fraud Enforcement Kevin Chambers. “The scale and complexity of the schemes prosecuted today illustrates the success of our unprecedented interagency effort to quickly investigate and prosecute those who abuse our critical health care programs.”
This announcement builds on the success of the May 2021 COVID-19 Enforcement Action and involves the prosecution of various COVID-19 health care fraud schemes. For example, several cases announced today involve defendants who allegedly offered COVID-19 testing to induce patients to provide their personal identifying information and a saliva or blood sample. The defendants are alleged to have then used the information and samples to submit false and fraudulent claims to Medicare for unrelated, medically unnecessary, and far more expensive tests or services. In one such scheme in the Central District of California, two owners of a clinical laboratory were charged with a health care fraud, kickback, and money laundering scheme that involved the fraudulent billing of over $214 million for laboratory tests, over $125 million of which allegedly involved fraudulent claims during the pandemic for COVID-19 and respiratory pathogen tests. The proceeds of this fraudulent scheme were allegedly laundered through shell corporations in the United States, transferred to foreign countries, and used to purchase real estate and luxury items. In two separate cases in the District of Maryland and the Eastern District of New York, owners of medical clinics allegedly obtained confidential information from patients seeking COVID-19 testing at drive-thru testing sites and then submitted fraudulent claims for lengthy office visits with the patients that did not, in fact, occur.
“Throughout the pandemic, we have seen trusted medical professionals orchestrate and carry out egregious crimes against their patients all for financial gain,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “These health care fraud abuses erode the integrity and trust patients have with those in the health care industry, particularly during a vulnerable and worrisome time for many individuals. The actions of these criminals are unacceptable, and the FBI, working in coordination with our law enforcement partners, will continue to investigate and pursue those who exploit the integrity of the health care industry for profit.”
In another type of COVID-19 health care fraud scheme announced today, defendants allegedly exploited policies that the Centers for Medicare and Medicaid Services (CMS) put in place to enable increased access to care during the COVID-19 pandemic. For example, in the Southern District of Florida, one medical professional was charged with a health care fraud, wire fraud, and kickback scheme that allegedly involved billing for sham telemedicine encounters that did not occur and agreeing to order unnecessary genetic testing in exchange for access to telehealth patients. Late last year, one defendant previously was sentenced to 82 months in prison in connection with this scheme.
“The attempt to profit from the COVID-19 pandemic by targeting beneficiaries and stealing from federal health care programs is unconscionable,” said Inspector General Christi A. Grimm of the Department of Health and Human Services (HHS). “HHS-OIG is proud to work alongside our law enforcement partners at the federal and state levels to ensure that bad actors who perpetrate egregious and harmful crimes are held accountable.”
Today’s announcement includes charges against two additional defendants for schemes targeting the Provider Relief Fund (PRF). The PRF is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted in March 2020 that provided financial assistance to medical providers to provide needed medical care to Americans suffering from COVID-19. In total, 10 defendants have been charged with crimes related to misappropriating PRF monies intended for frontline medical providers and three have pleaded guilty.
Today’s announcement also includes charges against manufacturers and distributors of fake COVID-19 vaccination record cards who, according to the allegations, intentionally sought to obstruct the HHS and Centers for Disease Control and Prevention in their efforts to administer the nationwide vaccination program and provide Americans with accurate proof of vaccination. For example, in the Northern District of California, three additional defendants were charged in a scheme to sell homeoprophylaxis immunizations for COVID-19 and falsify COVID-19 vaccination record cards to make it appear that customers received government-authorized vaccines. One defendant allegedly misused her position as the Director of Pharmacy at a northern California hospital to obtain real lot numbers for the Moderna vaccine that were then used to falsify COVID-19 vaccination record cards. Another defendant pleaded guilty in April 2022. In a separate case in the Western District of Washington, one manufacturer was charged in the multistate distribution of fake COVID-19 vaccination record cards after allegedly telling an undercover federal agent that “until I get caught and go to jail, [expletive] it I’m taking the money, ha! I don’t care.”
Additionally, the Center for Program Integrity, Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it has taken an additional 28 administrative actions against providers for their alleged involvement in fraud, waste, and abuse schemes related to the delivery of care for COVID-19, as well as schemes that capitalize upon the public health emergency.
“We are committed to working closely with our law enforcement partners to combat fraud, waste and abuse in our federal health care programs,” said CMS Administrator Chiquita Brooks-LaSure. “The administrative actions CMS has taken protect the Medicare Trust Funds while also safeguarding people enrolled in Medicare.”
Today’s enforcement actions were led and coordinated by Assistant Chief Jacob Foster and Trial Attorney D. Keith Clouser of the National Rapid Response Strike Force, and Assistant Chief Justin Woodard of the Health Care Fraud Unit’s Gulf Coast Strike Force in the Criminal Division’s Fraud Section. The Fraud Section’s National Rapid Response Strike Force and the Health Care Fraud Unit’s Strike Forces (SF) in Brooklyn, the Gulf Coast, Miami, Los Angeles, and Newark, as well as the U.S. Attorneys’ Offices for the District of Maryland, District of New Jersey, District of Utah, Northern District of California, and Western District of Tennessee are prosecuting these cases. Descriptions of each case involved in today’s enforcement action are available on the department’s website at: https://www.justice.gov/criminal-fraud/health-care-fraud-unit/case-summaries.
In addition to the FBI, HHS-OIG, and CPI/CMS, the U.S. Postal Inspection Service; U.S. Postal Service Office of the Inspector General; Department of Defense Office of Inspector General; Department of the Interior Office of the Inspector General; Department of Labor Office of the Inspector General; Food and Drug Administration Office of Criminal Investigations; Homeland Security Investigations; U.S. Department of Veterans Affairs Office of the Inspector General; and other federal and local law enforcement agencies participated in the law enforcement action.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the CMS, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
An indictment, complaint, or information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Statement from Attorney General Merrick B. Garland on the 27th Anniversary of the Oklahoma City BombingRead the Press Release
Attorney General Merrick B. Garland issued the following statement today, commemorating the 27th anniversary of the Oklahoma City Bombing, which took place April 19, 1995, in Oklahoma City, Oklahoma:
“Every year on this day, we remember those who were killed when a domestic terrorist bombed the Alfred P. Murrah Federal Building in Oklahoma City, taking the lives of 168 people, including 19 children, and seriously injuring hundreds of others.
“And every year on this day, we commemorate the strength of the Oklahoma City community that came together in the face of that loss.
“The Justice Department apprehended, prosecuted, and convicted the men responsible for the bombing of the Murrah Federal Building. As we did, we never forgot the victims, in whose memories we worked.
“Twenty-seven years later, the Justice Department remains vigilant in the face of the threat of domestic terrorism. We believe that the time to address threats of violence is before the violence occurs, so we are putting our resources into disrupting terrorist plots. We also remain committed to holding accountable those who perpetrate such attacks, which are aimed at rending the fabric of our democratic society and driving us apart.
“Today, as we remember Oklahoma City, we must stand together against the kind of hatred that leads to tragedies like that one. Today, we are also reminded of the grace and resilience demonstrated by the Oklahoma City community, which refused to allow hate and division to win.”
Justice Department Issues Statement on Ruling in Health Freedom Defense Fund Inc, et. al. v. Biden, et. al.Read the Press Release
The U.S. Department of Justice today released the following statement on Health Freedom Defense Fund Inc., et. al. v. Biden, et. al. from spokesman Anthony Coley:
“The Department of Justice and the Centers for Disease Control and Prevention (CDC) disagree with the district court’s decision and will appeal, subject to CDC’s conclusion that the order remains necessary for public health. The Department continues to believe that the order requiring masking in the transportation corridor is a valid exercise of the authority Congress has given CDC to protect the public health. That is an important authority the Department will continue to work to preserve.
“On April 13, 2022, before the district court’s decision, CDC explained that the order would remain in effect while it assessed current public health conditions, and that the Transportation Security Administration would extend its directive implementing the order until May 3 to facilitate CDC’s assessment.
“If CDC concludes that a mandatory order remains necessary for the public’s health after that assessment, the Department of Justice will appeal the district court’s decision.”
Florida Man Pleads Guilty to Federal Charges for Hate-Motivated Threats Against a U.S. Member of CongressRead the Press Release
A Florida man pleaded guilty today in U.S. District Court to threatening a member of the U.S. House of Representatives. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
On April 19, David Hannon, 67, of Sarasota, entered a guilty plea before U.S. Magistrate Judge Christopher P. Tuite to an information charging him with one count of threatening a federal official.
According to information presented at the guilty plea hearing, on July 16, 2019, while in Sarasota, Hannon sent an email to U.S. Congresswoman Ilhan Omar threatening to kill her. Hannon sent the email following a televised press conference held by Representative Omar and three other U.S. Congresswomen. In his threatening email, which had a subject line that read, “[You’re] dead, you radical Muslim,” Hannon referred to Congresswoman Omar and the other Congresswomen of color as “radical rats,” and asked Congresswoman Omar if she was prepared “to die for Islam.” The email further stated that Hannon was going to shoot the Congresswomen in the head.
“Threatening to kill our elected officials, especially because of their race, ethnicity or religious beliefs, is offensive to our nation’s fundamental values,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will not hesitate to prosecute individuals who violate federal laws that prohibit violent, hate-motivated threats. All elected officials, regardless of their background, should be able to represent their communities and serve the public free from hate-motivated threats and violence.”
“No one should fear violence because of who they are or what they believe,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “Unlawful threats against our elected officials are an assault against our democracy, and we will continue to work with our law enforcement partners to seek justice in these cases.”
The case is being investigated by the FBI with assistance from the U.S. Capitol Police, and is being prosecuted by Civil Rights Division Trial Attorney Sanjay Patel and Assistant U.S. Attorney Erin Claire Favorit for the Middle District of Florida.
Justice Department Secures Settlement with UPS to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it reached a settlement with United Parcel Service Inc. (UPS). The settlement resolves the department’s claims that UPS violated the Immigration and Nationality Act (INA) when it discriminated against a non-U.S. citizen by requesting that he present additional documents to prove his permission to work after the worker had already provided sufficient proof.
“When checking an individual’s permission to work, employers cannot ask for more documents than necessary based on a worker’s citizenship status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to protecting workers from unnecessary document requests based on citizenship status and national origin.”
The department’s investigation determined that UPS discriminated against a newly hired lawful permanent resident in Jacksonville, Florida, by asking him for his Permanent Resident Card and “work visa,” to prove his permission to work, even though he had already shown his driver’s license and unrestricted social security card, which were sufficient proof. UPS asked for the additional documents after getting a data entry error notification from the propriety software program the company uses to access E-Verify and verify workers’ permission to work. When UPS received the notification, the company asked the worker for additional documents instead of checking for a simple data entry error, as the company did when it received such notices for U.S. citizen workers.
The INA’s anti-discrimination provision prohibits employers from asking for unnecessary documents — or specifying the type of documentation a worker should present — to prove their permission to work, because of a worker’s citizenship, immigration status or national origin. Under the settlement, UPS will pay a civil penalty, train employees about how to properly handle notices about data entry errors, and be subject to department monitoring.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship or immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Job applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
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Justice Department Expands Arizona Lawsuit Alleging Disability Discrimination in Access to Surgical CareRead the Press Release
The Justice Department filed an amended complaint today in the U.S. District Court for the District of Arizona to add American Vision Partners (AVP) as a co-defendant in the department’s lawsuit against Barnet Dulaney Perkins Eye Center (BDP). The amended complaint alleges that AVP and BDP discriminate against patients who, because of their disabilities, need assistance transferring from their wheelchairs for eye surgery.
AVP provides management, training, policies and guidance, staff, infrastructure and technology to BDP and other eye care medical practices with nearly 80 facilities in Arizona, New Mexico, Nevada and Texas including: Southwestern Eye Center, M & M Eye Institute, Retinol Consultants of Arizona, Abrams Eye Institute, Southwest Eye Institute, Aiello Eye Institute, Havasu Eye Center, Visage Aesthetics and Plastic Surgery and Moretsky Cassidy Vision Correction.
In its original complaint, the department alleged that BDP required patients with disabilities who need transfer assistance to use and pay for third party medical transport and transfer assistance as a condition of surgery, in violation of the Americans with Disabilities Act (ADA). The amended complaint adds allegations that AVP and BDP have also denied eye surgery outright to patients who need transfer assistance. The United States alleges that this discriminatory practice delays needed medical care and results in significant harms to individuals who need eye surgery, including continued eye pain, vision loss and a loss of independence.
“No one should be refused healthcare services simply because they need help transferring from a wheelchair to a surgery table,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Denial of needed surgery based on unfounded assumptions and stereotypes about disability violates the ADA and devalues the lives, health, dignity and independence of individuals with disabilities.”
The department is asking the court to stop AVP and BDP from discriminating against individuals with disabilities, including by adopting non-discriminatory polices related to transfer assistance and training its staff to provide patients with wheelchairs transfer assistance. The department also seeks money damages for those people who were harmed by AVP’s and BDP’s discriminatory policies and practices, including those who were denied medical services and those who were forced to pay for third-party transfer assistance in order to get surgery services.
In addition to BDP, AVP partner practices include Southwestern Eye Center, M & M Eye Institute, Retinol Consultants of Arizona, Abrams Eye Institute, Southwest Eye Institute, Aiello Eye Institute, Havasu Eye Center, Visage Aesthetics and Plastic Surgery and Moretsky Cassidy Vision Correction. If you believe that you or someone you know was denied medical services by an AVP partner practice or BDP because of needed transfer assistance or was required to pay for third-party medical personnel to provide transfer assistance or transportation at an AVP partner practice or BDP, please contact 1-866-380-2003 (toll-free), or send an email to [email protected]. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Former Congressional Candidate and Indiana Casino Executive Plead Guilty to Crimes Involving Political Contribution SchemesRead the Press Release
Two Indiana men have pleaded guilty to federal crimes for their roles in paying and receiving secret political contributions through a middleman.
Today, a former Indianapolis-based casino executive pleaded guilty to causing false statements on the casino’s corporate tax return by concealing contributions to a local political party as deductible business expenses. Additionally, a 2016 candidate for U.S. Congress, charged in the same indictment, pleaded guilty last week to making and receiving illegal conduit contributions through sham donors and making false statements to the FBI.
According to court documents, John Keeler, 72, of Indianapolis, former vice president and general counsel of gaming company New Centaur LLC, funneled $41,000 in New Centaur corporate funds to Maryland-based political consultant Kelley Rogers and an entity under his control for the purpose of contributing the funds to the Greater Indianapolis Republican Finance Committee to benefit the Marion County Republican Central Committee. Keeler then caused New Centaur to falsely report the political contribution to the IRS as a deductible business expense.
In addition, Darryl Brent Waltz, 48, of Greenwood, a former Indiana State Senator and 2016 candidate for U.S. Congress, pleaded guilty last week to funneling $40,500 in illegal conduit contributions to his 2016 congressional campaign. Waltz and Rogers directed corporate funds from New Centaur into the Brent Waltz for Congress campaign through several straw contributors and through Waltz himself. Waltz also lied to and misled federal authorities who were investigating the illegal contributions.
Both defendants are scheduled to be sentenced at a later date. Waltz faces up to 10 years in prison and Keeler faces up to three years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
FBI and IRS-Criminal Investigation investigated the cases.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Zachary A. Myers for the Southern District of Indiana, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Assistant Director in Charge Steven D’Antuono of the of the FBI’s Washington Field Office, and Special Agent in Charge Justin Campbell of IRS-Criminal Investigation Chicago Field Office made the announcement.
Trial Attorneys William J. Gullotta and John P. Taddei of the Criminal Division’s Public Integrity Section and Senior Litigation Counsel Bradley P. Shepard for the Southern District of Indiana are prosecuting the cases.
Former CFO of Publicly Traded Brazilian Company Charged in Fraud SchemeRead the Press Release
A superseding indictment was unsealed today in the Southern District of Iowa charging the former Chief Financial Officer (CFO) of publicly traded reinsurance company, IRB Brasil Resseguros SA, aka IRB Brasil RE (IRB), for fraudulently propping up its stock price by spreading false information that U.S. investment firm Berkshire Hathaway Inc. had invested in IRB.
According to court documents, Fernando Passos, 39, of Brazil, allegedly executed the fraud scheme beginning in February 2020, after an investment company published a report questioning the accuracy of IRB’s financial statements and announcing that the investment company had taken a short position against IRB’s stock. IRB’s stock price dropped in the wake of the report. In response, Passos allegedly developed and executed a scheme to mislead shareholders and the investing public by disseminating and causing to be disseminated materially false information that Berkshire Hathaway had invested in IRB, despite knowing the U.S. investment firm had not made such an investment. Passos discussed his plans to spread this materially false information with IRB investor relations employees. In one text message described in the indictment, Passos stated, “I will spread this story that berk [i.e., Berkshire Hathaway] bought 28MM of shares,” and added, “then it becomes true.”
As part of the fraud scheme, the superseding indictment alleges, Passos falsified documents and information to support his claims that Berkshire Hathaway was an IRB shareholder and caused this information to be provided to members of the press, several of IRB’s directors, and IRB investors. News outlets in both Brazil and the United States began incorrectly reporting that Berkshire Hathaway had invested in IRB. Following the news coverage, on the evening of March 3, 2020, Berkshire Hathaway issued a press release stating that it was not currently, had never been, and had no intention of becoming a shareholder in IRB. On March 4, 2020, after Berkshire Hathaway’s press release, IRB’s stock price dropped, causing significant shareholder losses.
IRB, which is based in Brazil, trades on Brazil’s B3 exchange and has shareholders around the world, including in the United States.
Passos is charged with one count of securities fraud and three counts of wire fraud. If convicted, he faces up to 20 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. He remains at large.
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 Criminal Investigations Group made the announcement.
The U.S. Postal Inspection Service is investigating the case.
Trial Attorney Kate McCarthy of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may 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]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. If you believe you are a victim of the conduct described in the Passos indictment, please visit https://www.justice.gov/criminal-vns/case/Passos.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
El Departamento de Justicia llega a un acuerdo con UPS que resuelve unas denuncias de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con United Parcel Service Inc. (UPS). El acuerdo resuelve las acusaciones del Departamento de que UPS vulneró la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) cuando discriminó a un no ciudadano de los EE. UU. al pedir que presentara documentos adicionales para demostrar su permiso para trabajar después de que el trabajador ya había presentado suficientes pruebas.
«En el momento de comprobar el permiso de un individuo para trabajar, los empleadores no pueden pedir documentos adicionales más allá de los necesarios con base en el estatus de ciudadanía de un trabajador», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles está comprometida a proteger a los trabajadores de solicitudes innecesarias de documentos con base en su estatus de ciudadanía o nacionalidad de origen».
La investigación del Departamento determinó que UPS discriminó a un residente permanente legal recién contratado en Jacksonville, Florida al pedir que presentara su tarjeta de residente permanente y «visa laboral» para demostrar que tenía permiso para trabajar, a pesar de que ya había presentado su carnet de conducir y tarjeta de seguro social sin restricciones, los que constituyen pruebas suficientes. UPS pidió los documentos adicionales después de recibir una notificación de error de introducción de datos del programa de software propio que la compañía usa para acceder a E-Verify y verificar el permiso de trabajadores para trabajar. Cuando UPS recibió la notificación, la compañía pidió al trabajador documentos adicionales en vez de comprobar si había un error sencillo en la introducción de datos, tal y como la compañía hacía cuando recibía tales notificaciones para trabajadores ciudadanos de los EE. UU.
La disposición antidiscriminatoria de la INA prohíbe que los empleadores pidan documentos innecesarios –o que especifiquen el tipo de documentación que un trabajador debe presentar– para demostrar su permiso para trabajar, debido a la ciudadanía, estatus migratorio o nacionalidad de origen del trabajador. Conforme la conciliación, UPS pagará una sanción civil, capacitará a sus empleadores en cuanto a la gestión adecuada de notificaciones de errores en la introducción de datos y se someterá a la supervisión por parte del Departamento.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias e intimidación.
Aquellos solicitantes de trabajo o empleados que creen haber sido discriminados por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o durante el proceso de verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar la página web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
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Justice Department Files Suit Against Virginia Towing Company for Unlawfully Auctioning Off Servicemembers’ VehiclesRead the Press Release
The Justice Department today filed a lawsuit in the U.S. District Court for the Eastern District of Virginia alleging that Steve’s Towing Inc. in Virginia Beach, Virginia, violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain court orders before auctioning off vehicles belonging to at least seven SCRA-protected servicemembers, including two vehicles belonging to a member of a Navy Seal team who was deployed overseas. The SCRA, which provides a variety of financial and housing protections to members of the military, prohibits towing companies from auctioning off servicemembers’ vehicles without a court order.
Federal law requires towing companies to determine whether a vehicle in their possession belongs to a servicemember. The complaint alleges that several facts should have put Steve’s Towing on notice that the Navy Seal’s vehicles belonged to a servicemember, including that the vehicles were towed from a military base and one contained a duffel bag filled with military uniforms.
“The flagrant disregard of a law designed to protect the rights of those in military service will not be tolerated,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice is taking action to ensure that all servicemembers harmed by unscrupulous actions receive just compensation. We must put an end to unlawful business practices that bring harm and distress to those selflessly serving in our armed forces.”
In addition to seeking damages for the Navy Seal and the other affected servicemembers, the Justice Department is requesting a court order preventing Steve’s Towing from illegally auctioning off servicemembers’ vehicles in the future. The lawsuit also seeks a civil penalty.
This lawsuit is the result of a coordinated effort between the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia. The complaint contains allegations only; there has been no determination of civil liability.
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 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 department has obtained over $476 million in monetary relief for over 121,000 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.
Former Oklahoma Supervisory Corrections Officer Convicted for Facilitating White Supremacist Assault on Black Inmates and Ordering Other AbuseRead the Press Release
A federal jury in Oklahoma City, Oklahoma, convicted a former Kay County Oklahoma supervisory corrections officer of violating the civil rights of three pretrial detainees held at the Kay County Detention Center (KCDC). Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division and U.S. Attorney Robert Troester of the Western District of Oklahoma made the announcement.
The jury convicted Matthew Ware, 53, of willfully depriving two pretrial detainees of their right to be free from a corrections officer’s deliberate indifference to a substantial risk of serious harm and of willfully depriving a third pretrial detainee of the right to be free from a corrections officer’s use of excessive force.
“This high-ranking corrections official had a duty to ensure that the civil rights of pretrial detainees in his custody were not violated,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant abused his power and authority by ordering subordinate corrections officers to violate the constitutional rights of several pretrial detainees. The Civil Rights Division will continue to hold corrections officials accountable when they violate the civil rights of detainees and inmates.”
“Criminal conduct by any corrections employee violates the public trust and unfairly tarnishes the reputation of all corrections officials who honorably perform their important work each day,” said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “This verdict demonstrates our continuing commitment to protect the civil rights of all Oklahomans, including those in custody. I commend the outstanding work of Assistant U.S. Attorney Julia Barry and Trial Attorney Laura Gilson, who vigorously prosecuted this case, and the FBI Special Agents and other law enforcement officials who conducted this investigation.”
“The preservation of civil rights and the investigation of color of law violations are of utmost priority for the FBI,” said Special Agent in Charge Ed Gray of the FBI Oklahoma City Field Office. “If we don’t hold our very own law enforcement officials accountable, those sworn to protect and serve, what hope will the American people have? Mr. Ware’s actions were impermissible and undignified, particularly given his leadership role. His conviction is a prompt reminder that no one is above the law.”
The evidence and testimony revealed that, on May 18, 2017, while Ware served as the Lieutenant of the KCDC, he ordered lower-ranking corrections officers to move two Black pretrial detainees, D’Angelo Wilson and Marcus Miller, to a cell row housing white supremacist inmates whom Ware knew posed a danger to Wilson and Miller. Later that same day, Ware gave lower-ranking officers a second order: to unlock the jail cells of Wilson and Miller, and those other white supremacist inmates at the same time the following morning. When Ware’s orders were followed, the white supremacist inmates attacked Wilson and Miller, resulting in physical injury to both, including a facial laceration to Wilson that required seven stitches to close.
The evidence and testimony also revealed that, on Jan. 31, 2018, while Ware served as the Acting Captain of the KCDC, he ordered lower-ranking corrections officer to restrain another pretrial detainee, Christopher Davis, in a stretched-out position — with Davis’ left wrist restrained to the far-left side of the bench and his right wrist restrained to the far-right side of the bench — in retaliation for Davis sending Ware a note that criticized how Ware ran the KCDC. Davis was left restrained in this position for 90 minutes, resulting in physical injury.
Ware faces a maximum sentence of 10 years in prison, three years of supervised release and a fine of up to $ 250,000 for each violation. Sentencing will take place in approximately 90 days.
The case was investigated by the Oklahoma City FBI Field Office. Assistant U.S. Attorney Julia Barry of the Western District of Oklahoma and Trial Attorney Laura Gilson of the Civil Rights Division prosecuted the case.
Former Bank Employee Pleads Guilty to Manipulating U.S. Treasury Securities PricesRead the Press Release
A former trader at a global financial institution pleaded guilty yesterday to manipulating U.S. Treasury securities prices.
According to court documents, Tyler Forbes, 27, of Manlius, New York, was employed as a trader on the U.S. Treasuries desk of a global financial institution. From approximately January to June 2019, Forbes engaged in an unlawful “spoofing” scheme to manipulate the price of certain U.S. Treasury securities traded in the secondary (or “cash”) market — predominantly two and three-year U.S. Treasury notes, as well as 10-year U.S. Treasury notes. Forbes’s spoofing strategy involved electronically placing large, non-bona fide “spoof orders” that he intended to cancel prior to execution on one side of the market, while simultaneously entering smaller, genuine orders that he intended to execute on the opposite side of the market. Many of Forbes’s genuine orders were “iceberg” orders, meaning that only a portion of the order’s full size was visible to other market participants at any given time, whereas all of Forbes’s spoof orders were fully displayed. The purpose of Forbes’s “spoof orders” was to create a false appearance of market depth and activity in order to mislead other traders, and to artificially raise or depress the prevailing market price so that Forbes could execute his genuine orders more easily or more profitably.
Forbes pleaded guilty to one count of manipulation of security prices. He is scheduled to be sentenced on July 28 in the Eastern District of New York and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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 investigated the case.
Deputy Chief Avi Perry and Trial Attorney Sara Hallmark of the Criminal Division’s Fraud Section are prosecuting the case.
California Man Convicted of COVID-19 Relief FraudRead the Press Release
A federal jury convicted a California man today of misappropriating hundreds of thousands of dollars in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
According to evidence presented at trial, Oumar Sissoko, 59, whose last known residence was in Temecula, submitted a PPP loan application on behalf of his company, Road Doctor California LLC, and obtained $7.25 million. The loan application certified that the funds would be used to retain workers and maintain payroll or make mortgage-interest payments, lease payments, and utility payments. In early May 2020, Sissoko misappropriated hundreds of thousands of dollars of the PPP loan proceeds to use for impermissible purposes, including the purchase of a luxury car for more than $100,000, the satisfaction of a loan made to Sissoko in connection with his prior acquisition of a different luxury car, and the purchase of a computer for almost $6,000. Sissoko also attempted to transmit approximately $150,000 to accounts in Mauritania associated with a different company for which Sissoko purported to serve as CEO.
Sissoko was convicted of four counts of wire fraud. He is scheduled to be sentenced on July 18 and faces up to 20 years in prison for each count of conviction. 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; U.S. Attorney Tracy L. Wilkison for the Central District of California; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Assistant Director in Charge Kristi K. Johnson of the FBI’s Los Angeles Field Office; Special Agent in Charge Weston King of the U.S. Small Business Administration’s Office of Inspector General’s (SBA-OIG) Western Region; and Special Agent in Charge Jeffrey D. Pittano of the San Francisco Regional Office of the Federal Deposit Insurance Corporation’s Office of Inspector General (FDIC-OIG) made the announcement.
The FBI, SBA-OIG, and FDIC-OIG investigated the case.
Assistant U.S. Attorney Carolyn Small for the Central District of California and Trial Attorney Jason Covert of the Criminal Division’s Fraud Section prosecuted the case.
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 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.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Tax Preparer Sentenced to Prison for Conspiracy and Filing Fraudulent Tax Returns for ClientsRead the Press Release
A Louisiana woman was sentenced today to one year and one day in prison for conspiring to defraud the United States and helping clients file false tax returns.
On Nov. 14, 2019, Brittany Patterson, of St. John the Baptist Parish, pleaded guilty to conspiracy to defraud the United States and aiding and assisting in the filing of false tax returns. According to court documents, Michegel Butler owned Crown Tax Service LLC, where Patterson worked as a tax return preparer. From approximately January 2013 through April 2013, Patterson, Butler and others conspired to inflate their clients’ refunds by preparing tax returns claiming false Schedule C businesses, dependents and dependent care expenses. To substantiate the false income and expenses reported on their tax returns, Patterson and the other co-conspirators directed clients to fill out fraudulent receipts. They also encouraged some clients to buy or sell the personal identification information of dependents that could be falsely reported on tax returns.
In addition to the term of imprisonment, U.S. District Judge Carl J. Barbier ordered Patterson to serve three years of supervised release and pay approximately $90,856 in restitution to the United States.
On Feb. 4, 2021, Butler was sentenced to two years in prison for his role in the conspiracy.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Jessica Kraft of the Justice Department’s Tax Division and Assistant U.S. Attorney Dall Kammer of the U.S. Attorney’s Office for the Eastern District of Louisiana prosecuted the case.
New York Man Indicted for Tax EvasionRead the Press Release
A New York man was arraigned today in the Eastern District of New York on charges of tax evasion.
According to the April 8 indictment, from 2009 to 2014, David Seruya, of Brooklyn, was a shareholder of a New Jersey-based home warranty business. In 2014, Seruya allegedly entered into a buyout agreement whereby he agreed to sell his shares of stock back to the business and exit the company. In exchange for his stock shares, the home warranty company allegedly agreed to pay Seruya a total of more than $4.1 million, which included a lump sum payment and installment payments spread out over 24 months. The indictment charges that on his 2014 through 2016 tax returns, Seruya underreported income he received from the sale of his stock. Indeed, Seruya allegedly provided false and incomplete income information to his return preparer for each of those years. In total, Seruya’s tax evasion allegedly caused a loss to the IRS of more than $250,000.
If convicted, Seruya faces a maximum penalty of five years in prison for each of three counts of tax evasion. 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, U.S. Attorney Breon Peace for the Eastern District of New York and Acting Special Agent in Charge Tammy Tomlins of IRS-Criminal Investigation Newark Field Office made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Shawn Noud of the Tax Division and Special Assistant U.S. Attorney Carolyn Silane for the Eastern District of New York 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.
Justice Department Secures Civil Rights Settlement Agreement Against South Carolina Department of Juvenile JusticeRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the District of South Carolina today filed a complaint and settlement agreement with the South Carolina Department of Juvenile Justice to resolve its investigation of the Broad River Road Complex in Columbia, South Carolina, the long-term residential facility for children in South Carolina’s juvenile justice system. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Corey Ellis for the District of South Carolina made the announcement.
The agreement resolves the department’s claims that the South Carolina Department of Juvenile Justice fails to protect children at the Broad River Road Complex from harm from staff and other children and uses prolonged isolation as punishment.
Under the agreement, the South Carolina Department of Juvenile Justice will make changes meant to increase safety at the Broad River Road Complex. These changes include changes to staffing patterns, the development of a positive behavior management program to reduce youth-on-youth violence and increased video surveillance. The agreement also requires the Department of Juvenile Justice to limit the use of force or restraints to exceptional circumstances and improve its investigation process.
In addition, the agreement requires the Department of Juvenile Justice to restrict the use of isolation to incidents where the child poses a serious and immediate danger to themselves or to others. Finally, the agreement appoints an independent subject matter expert to monitor the agreement and make recommendations to ensure the Department of Juvenile Justice’s compliance with the agreement.
“All children held in the custody of the state deserve safe and humane conditions, that can bring about rehabilitation and reform,” said Assistant Attorney General Kristen Clarke. “This comprehensive settlement agreement will protect children held in the Broad River Road Complex from harm and the damaging impact of long-term isolation. We will continue working to safeguard the civil rights of children held in detention facilities across the county.”
“The South Carolina Department of Juvenile Justice is to be commended for its commitment to reforming the state’s juvenile detention facility and protecting children in custody,” said U.S. Attorney Corey Ellis for the District of South Carolina. “Today, the state has taken an important step in rectifying the unconstitutional conditions in its juvenile correctional facilities.”
The Civil Rights Division’s Special Litigation Section and the United States Attorney’s Office for the District of South Carolina initiated the investigation in October 2017. Today, the department provided written notice of the facts supporting its conclusion that employees at the Broad River Road Complex engage in a pattern of excessive force that harms children and violates their constitutional rights. In February 2020, the department also sent the Department of Juvenile Justice notice of its conclusions that it fails to protect children from harm from other children and engages in punitive, prolonged isolation. The agreement addresses both reports.
The Justice Department filed the complaint pursuant to provisions of 34 U.S.C. § 12601 covering “the incarceration of juveniles.” In addition, the Justice Department and South Carolina filed a joint motion requesting that the court retain jurisdiction to enforce the settlement agreement, if necessary.
The Civil Rights Division is committed to safeguarding the rights of children held in secure facilities across the country. For example, the division recently opened a statewide investigation of Texas’s secure juvenile facilities to examine whether Texas provides children confined in the facilities with adequate mental health care, reasonable protection from physical and sexual abuse by staff and other residents, and reasonable protection from excessive use of chemical restraints and isolation. In Connecticut, the division recently issued a report finding that the Manson Youth Institution’s isolation practices, inadequate mental health services and inadequate special education services violate children’s constitutional and federal rights.
The department encourages individuals who wish to share information about the Broad River Road Complex to contact the department at (844) 380-6166 or via email at [email protected]. The Civil Rights Division also has a Civil Rights Portal, where people can report when their civil rights have been violated, which is available at https://civilrights.justice.gov/. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Releases Action Plan to Advance EquityRead the Press Release
The Department of Justice today released its Equity Action Plan, in accordance with President Biden’s Executive Order on Advancing Racial Equity and Support for Underserved Communities Through the Federal Government.
The Justice Department’s mission is to ensure equal justice under law. The Equity Action Plan builds on this mission by utilizing resources across the Department to advance equity for underserved communities nationwide. The Equity Action Plan focuses on prioritizing equity and increasing opportunity in five key areas: federal financial assistance, access to grants, language access, stakeholder engagement, and contracting and procurement.
Underserved communities, especially communities of color, experience higher rates of violent crime, especially hate crimes and gun violence, which have devastating effects on victims, their families, and their communities. Such violence affects Black youth, men, and women and other communities of color at disproportionate rates, and is highest in racially segregated, high poverty neighborhoods. The Department has dedicated substantial resources to combating violent crime and gun violence through both vigorous law enforcement efforts and significant investments in evidence-based community programs, such as community-based violence intervention, that can help disrupt violence and strengthen communities. The Equity Action Plan will use cross-departmental resources to aid communities that have experienced inequity, disparity, grief, and adversity, often attributed to violent crime.
“Improving access to Justice Department programs and services is critical to ensuring equal justice under law and promoting public safety,” said Attorney General Merrick B. Garland. “The Department’s Equity Action Plan is designed to increase equity, opportunity, and resources to our most vulnerable communities.”
In order to address the key areas established in the Equity Action Plan, the Department has identified the following action items:
- Leverage federal funds provided by the Department to (a) encourage grantees to include equity considerations in the provision of federally funded services, (b) enhance data collection to identify and take action to address disparities in access to the Department’s programs or services based on demographic factors, and (c) better ensure that grantees are complying with non-discrimination mandates;
- Improve access to funding opportunities for organizations that are led by, or primarily serve, historically marginalized and underserved populations;
- Reduce language barriers that make it difficult for individuals with limited English proficiency to access Department programs or activities, communicate public safety concerns, or vindicate their rights;
- Improve the Department’s engagement with stakeholders in underserved communities and disadvantaged groups in order to establish enduring relationships with them and enhance the public’s awareness of the Department’s expansive mission and resources; and
- Increase opportunities for small businesses located in Historically Underutilized Business Zones to secure Department contracts.
Since Jan. 20, 2021, the Department has taken many steps to advance equity for marginalized communities, including by combating hate crimes and hate incidents, revitalizing the Community Relations Service, re-establishing the Office for Access to Justice, ensuring non-discrimination in federal grants, expanding language access, and reforming law enforcement practices. The Department’s Equity Action Plan will build on these ongoing efforts.
Former Health Care Staffing Executive Convicted of Obstructing FTC Investigation into Wage-Fixing AllegationsRead the Press Release
Today, a Texas man was convicted of obstructing a Federal Trade Commission (FTC) investigation, following an eight-day trial in the Eastern District of Texas.
“Lying to federal agencies is a crime, plain and simple,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “And, as the court’s rulings in this case make clear, so is wage fixing. When obstruction affects the federal government’s investigations into labor market collusion and impedes our ability to protect workers, we will use all the tools available to prosecute all of these crimes to the full extent of the law.”
“Wage fixing causes tremendous harm to countless hardworking Americans,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI will continue to work closely with our law enforcement partners to uncover this type of corruption and bring to justice anyone who is responsible or who obstructs our investigations into this conduct.”
Evidence introduced at trial showed that Neeraj Jindal obstructed an FTC investigation in 2017 into an alleged illegal agreement to fix rates paid to therapists for treating home health agency patients in the Dallas/Fort Worth, Texas, area. At the time, Jindal was the owner of a Texas-based therapist staffing company providing in-home physical therapy services.
The obstruction offense carries a statutory maximum penalty of five years imprisonment and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jindal was found not guilty on two other counts charged in the same indictment. John Rodgers, his co-defendant, was found not guilty on the three charges against him included in the indictment.
In November 2021, in denying a motion to dismiss, the court held that “price-fixing agreements — even among buyers in the labor market — have been per se illegal for years.” The court observed: “When the price of labor is lowered, or wages are suppressed, fewer people take jobs, which always or almost always tends to restrict competition and decrease output.” (internal citations omitted).
The Antitrust Division’s Washington Criminal I Section prosecuted the case, which was investigated with the FBI’s International Corruption Unit, with support from the U.S. Attorney’s Office for the Eastern District of Texas.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Pharmacy Owner Sentenced to Prison for Health Care FraudRead the Press Release
A New York woman was sentenced today to 78 months in prison for defrauding health care programs, including more than $6.5 million from Medicare Part D plans and Medicaid drug plans.
According to court documents, Aleah Mohammed, 37, of Queens, pleaded guilty to one count of mail fraud, one count of health care fraud, and one count of conspiracy to commit health care fraud.
According to court documents, Mohammed was an owner and operator of five pharmacies: Superdrugs Inc., Superdrugs I Inc., Superdrugs II Inc., S&A Superdrugs II Inc. and Village Stardrugs Inc. Between 2015 and 2020, Mohammed used these pharmacies to defraud health care programs, including Medicare and Medicaid, by submitting claims for prescription drugs that were not dispensed, not prescribed as claimed, not medically necessary, or that were purportedly dispensed during a time when the pharmacy was no longer registered with the State of New York. The fraudulent claims included claims for expensive prescription drugs for the treatment of the human immunodeficiency virus (HIV). Mohammed used proceeds of the scheme to purchase herself luxury items, such as jewelry and a Porsche.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations; Assistant Director Luis Quesada of the FBI's Criminal Investigative Division; and Assistant Director-in-Charge Michael J. Driscoll of the FBI’s New York Field Office made the announcement.
HHS-OIG and the FBI investigated the case.
Trial Attorneys Andrew Estes and Patrick J. Campbell of the Criminal Division’s Fraud Section prosecuted the case.
Operators of Michigan Businesses Charged with Tax Conspiracy and Wire FraudRead the Press Release
A federal grand jury in Flint, Michigan, returned an indictment today charging Michael Angelo (Angelo), Hassan Kamal Fayad, Mirna Kamal Fayad, Cory Justin Mann, Thomas Reed Quartz and Rosina Angelo with conspiring to defraud the IRS and other crimes.
According to the indictment, from approximately 2011 to 2022, Angelo owned and operated a network of corporate entities that provided medical, legal and transportation services to automobile crash victims. To disguise his ownership of the entities, Angelo allegedly designated nominee owners over some of the entities. Hassan Kamal Fayad, Mirna Kamal Fayad, Mann, Quartz, Rosina Angelo and others allegedly helped Angelo operate the entities.
The indictment alleges that certain other individuals had access to Michigan traffic crash reports that were obtained through both lawful and unlawful means. Angelo allegedly directed these individuals to contact crash victims and offer them services provided by Angelo’s network of entities. The network of entities allegedly earned millions of dollars in revenues during the years Angelo owned and operated them, but Angelo did not report all of this income to the IRS. To conceal income earned by the entities, Angelo and his co-conspirators allegedly directed payments the entities received to bank accounts he owned and controlled. The indictment alleges Angelo used some of the funds to pay his personal expenses.
In addition to defrauding the IRS, Angelo, Hassan Kamal Fayad and Mann also allegedly defrauded third-party finance companies that had purchased the right to payments from some crash victims who had received services from entities they owned. According to the indictment, Angelo, Hassan Kamal Fayad and Mann sold to these finance companies the rights to certain payments due for invoices issued to patients and clients that actually had already been paid or settled. The three defendants then allegedly concealed some of this income from the IRS to avoid paying taxes on this income.
All six defendants are charged with one or more counts of conspiring to defraud the IRS. If convicted, each faces a maximum of five years in prison for each such count. In addition, if convicted: Angelo faces a maximum of 20 years in prison for each of five counts of wire fraud and a maximum of five years on each of two counts of tax evasion; Hasan Kamal Fayad faces a maximum of 20 years in prison for each of 13 counts of wire fraud and a mandatory minimum of two years in prison for one count of aggravated identity theft; and Mann faces a maximum of 20 years in prison for each of three counts of wire fraud. 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.
The FBI and IRS-Criminal Investigation division are investigating the case.
Trial Attorneys Mark McDonald and Christopher P. O’Donnell 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.
Ohio Man Pleads Guilty to Wire Fraud in Exchange for Purported Hunting LeasesRead the Press Release
An Ohio man pleaded guilty to wire fraud for operating a scheme where he solicited payment in exchange for purported hunting leases he had no rights to sell.
According to court documents, throughout 2019, Nathanal L. Knox, 30, of Ohio, operated a scheme where he placed online advertisements for hunting leases supposedly available on several parcels of land in Ohio. The defendant in fact had no rights to sell leases to the properties in question. He placed the advertisements on at least 38 different Facebook pages, including “Hunt Florida,” “Ohio Hunting Lease,” “Bow Hunting PA,” and “Alabama Deer Hunters.”
In these advertisements, the defendant solicited payment in exchange for purported hunting leases. The prices charged ranged from $400 to $5,000. The defendant requested payment from prospective clients be made through PayPal, Walmart 2 Walmart, Money Gram, Western Union and Venmo. When individuals inquired further about the purported leases, the defendant would provide pictures of mature bucks that he falsely claimed had been harvested by former clients on the parcels in question. After receiving initial payments, the defendant would send contracts and instructions via email.
The defendant was arrested on Sept. 30, 2019, by the Fayette County Sheriff’s Office while attempting to collect the second half of a $5,000 fee owed by two victims from Florida. The victims had travelled to the supposed lease site to scout the area, and been confronted by the landowner, at which point they learned they had been defrauded. They then contacted the Sheriff’s office and set up the meeting with the defendant, at which point he was arrested. During this time, the Ohio Department of Natural Resources, Division of Wildlife had received multiple complaints from landowners as well. Upon receiving the complaints, investigators obtained a copy of the initial sheriff’s report and began searching for the remaining victims through social media posts.
The investigation, carried out by the Ohio Department of Natural Resources, Division of Wildlife, in cooperation with the U.S. Fish and Wildlife Service, involved search warrants on social media accounts, subpoenas on payment facilitators, interviews of victims, and interviews of the target and related subjects. In total, the defendant solicited payment from at least 68 different individuals, all of whom resided outside of Ohio. At least 59 of these individuals sent initial payments to the defendant, totaling over $34,000.
“The Department of Justice prosecutes fraud in many forms,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The defendant’s scheme not only cheated dozens of innocent people, but also put landowners and hunters in harm’s way. The Department is grateful to its law enforcement partners for stopping Knox before anyone was injured.”
“Unfortunately, individuals can find themselves being victimized in so many different ways,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “In this case, it was a fraudulent hunting lease scheme, which we shut down to ensure no other persons were taken advantage of by Knox. The 59 persons who sent an initial payment to this defendant are 59 victims too many.”
“Protecting sustainable hunting of America's wildlife resources is bedrock to our mission in the U.S. Fish and Wildlife Service,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service Office of Law Enforcement. “Investigating those who prey on individuals attempting to hunt lawfully by defrauding them is our trusted responsibility to the American people.”
“We value our landowners and work hard to protect their interests as well as the interests of hunters. This case shows the results of that work,” said Kendra Wecker, Chief of the Ohio Department of Natural Resources, Division of Wildlife. “If you witness a wildlife violation in Ohio, we encourage you to call 1-800-WILDLIFE. Reports are kept anonymous, and you will be doing a great service to protect Ohio’s wildlife resources.”
Knox pleaded guilty to wire fraud. He is scheduled to be sentenced in the coming months and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Ohio Department of Natural Resources, Division of Wildlife, in cooperation with the U.S. Fish and Wildlife Service are investigating the case.
Trial Attorney Adam Cullman of the Justice Department’s Environment and Natural Resources Division, Environmental Crimes Section; Special Assistant U.S. Attorney, J. Michael Marous for the Southern District of Ohio; and Assistant Attorney General Sally Smetzer Montell of Ohio are prosecuting the case.
Justice Department Reaches Agreement with City of Springfield to Reform Police Department’s Unconstitutional PracticesRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts today filed a complaint and a proposed consent decree with the City of Springfield, Massachusetts, to resolve its investigation of the Springfield Police Department’s Narcotics Bureau. This is the first pattern or practice police investigation to be resolved through a settlement under the Biden Administration.
The settlement agreement, in the form of a proposed consent decree, which must be approved by a federal District Court Judge, would resolve the United States’ claim that the City and the Narcotics Bureau of the Springfield Police Department engaged in a pattern or practice of excessive force that deprived individuals of their rights under the Fourth Amendment to the Constitution.
Under the agreement, the Springfield Police Department will improve policies and training related to officers’ use of force. These improvements will ensure that officers avoid force whenever possible through the use of de-escalation tactics; that officers know when force can and cannot be used; and that officers report all instances where force is used. In addition, the Springfield Police Department will provide better supervision to officers and improve internal investigations of complaints of officer misconduct. When officers violate use-of-force policies, the agreement will ensure that the Springfield Police Department holds officers accountable.
The agreement also provides for the federal judge to appoint an independent monitor, with the title of Compliance Evaluator, based on the recommendation of the parties. The Compliance Evaluator will assess Springfield’s implementation of the agreement’s requirements and file public reports with the court on Springfield’s progress.
“The public’s trust in law enforcement is a critical component of promoting public safety,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Excessive force erodes that trust and makes our communities less safe. This consent decree will rebuild the public’s trust by ensuring that Springfield officers who use excessive force in violation of the Fourth Amendment are held accountable. We look forward to working with city officials to ensure constitutional policing in every corner of the Springfield community and fostering better relationships between law enforcement and the community.”
“When communities don’t trust or fear law enforcement, it undermines public safety,” said U.S. Attorney Rachael Rollins for the District of Massachusetts. “Some within the Springfield Police Department, through their sustained and documented constitutional violations, have tarnished the name of the many upstanding and decent police officers working in Springfield. Today is the first step in repairing the harm and mistrust their misconduct and violence caused. After lengthy negotiations, we are pleased to have reached an agreement that includes significant and sustainable reforms to ensure effective and constitutional policing going forward in the City of Springfield. This is the first police misconduct settlement agreement entered during the Biden Administration. Our U.S. Attorney’s Office will always protect the constitutional rights of Massachusetts residents.”
The Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts initiated the investigation of the Springfield Police Department in April 2018 under the Violent Crime Control and Law Enforcement Act of 1994. This law authorizes the Attorney General to file a lawsuit to address a pattern or practice of conduct by law enforcement officers that deprives individuals of their rights under the Constitution or federal law. In July 2020, the department announced findings that officers in SPD’s Narcotics Bureau, which has since been renamed the Firearms Investigation Unit, engaged in a pattern or practice of excessive force. The department found that Narcotics Bureau officers often failed to report use of force incidents. At times officers’ reports were inconsistent with available evidence, including video and photographs.
This investigation was conducted jointly by the Civil Rights Division’s Special Litigation Section and the Civil Rights Unit of the U.S. Attorney’s Office for the District of Massachusetts. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. For more information on the U.S. Attorney’s Office’s Civil Rights Unit, please visit www.justice.gov/usao-ma/civil-rights.
Justice Department Announces Civil Settlement in Lafayette Square CasesRead the Press Release
Today, the Department of Justice announced that it has reached an agreement to settle claims in four civil cases arising from the June 1, 2020, law enforcement response to racial justice demonstrations in Lafayette Square in Washington, D.C.
As part of the settlement, the United States Park Police (USPP) and the United States Secret Service (USSS) agreed to update and clarify their policies governing demonstrations, and to implement the policy changes within 30 days of today’s settlement. The plaintiffs, Black Lives Matter D.C. and individuals who attended the protests, agreed to dismiss their claims for equitable relief against the United States.
Changes to the agency’s policies include more specific requirements for visible identification of officers, limits on the use of non-lethal force and procedures to facilitate safe crowd dispersal.
“The federal government is committed to the highest standards for protecting civil rights and civil liberties in any federal law enforcement response to public demonstrations,” said Associate Attorney General Vanita Gupta. “These changes to agency policies for protest responses will strengthen our commitment to protecting and respecting constitutionally protected rights.”
“From the steps of the Lincoln Memorial to the White House sidewalk, the National Park Service takes immense pride in caring for some of our nation’s most storied civic spaces,” said Director Chuck Sams of the National Park Service. “We hope this updated policy can serve as a model for others to uphold civil rights and facilitate safe demonstrations. It is good for the public and good for our officers. The United States Park Police is committed to ensuring people can gather safely to express our most fundamental and cherished right to free speech. This updated policy is designed to be accessible and understandable to both our officers and the public, further strengthening that commitment.”
“We appreciate the Park Police and Secret Service for their efforts to constantly review and revisit their law enforcement policies to evolve and protect those that seek to peacefully exercise their First Amendment rights,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “These revisions to our law enforcement partners’ policies will further protect those rights.”
USPP’s updated policy, which it released today, will:
- Require officers to wear fully visible badges and nameplates including on outerwear, tactical gear and helmets;
- Implement guidelines concerning the use of non-lethal force, including de-escalation tactics;
- Adopt clearer procedures for issuing dispersal warnings and permitting demonstrators to disperse; and
- Strengthen pre-event planning and on-site coordination between USPP and other law enforcement agencies.
Within the next 30 days, the USSS will:
- Amend its policies to provide that the fact that some demonstrators have engaged in unlawful conduct does not ordinarily provide blanket grounds for use of force, crowd dispersal or declaration of unlawful assembly.
This case was handled by the U.S. Attorney’s Office for the District of Columbia and the Justice Department’s Civil Division.
Illinois Woman Charged with Conspiring to Defraud the United States and Preparing False Tax Returns for ClientsRead the Press Release
In an indictment unsealed today, a federal grand jury in Chicago charged an Illinois woman with conspiring to defraud the United States and helping clients file false tax returns with the IRS.
According to the indictment, Stephanie Fagairo, of Frankfort, owned Double Vision Tax Service, a return preparation business. From 2014 through 2017, Fagairo and one of her employees allegedly conspired to file false tax returns for a number of Double Vision clients. They allegedly did so by including on client tax returns false Schedules C, which reported to the IRS fabricated business income and loss amounts in order to generate inflated refunds the clients were not entitled to receive. Fagairo also allegedly instructed other individuals on how to prepare false tax returns for clients.
Fagairo’s initial court appearance has not yet been scheduled. If convicted, Fagairo faces a maximum sentence of five years in prison for the conspiracy count and three years in prison for each of 11 counts of helping her clients file a false 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 and U.S. Attorney John R. Lausch, Jr. for the Northern District of Illinois made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Andrew Kameros and Trial Attorney Eric Taffet 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.
Former Madison County Detention Center Captain Pleads Guilty to Assault of DetaineeRead the Press Release
Gregory Evans, 50, a former Captain with the Madison County Detention Center, in Richmond, Kentucky, pleaded guilty today to using unreasonable force against a detainee, thereby violating the detainee’s civil rights. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Carlton S. Shier IV made the announcement.
According to court documents and admissions made during the plea hearing, Evans was escorting the victim, E.B., down a hallway when Evans grabbed E.B. out of anger, strangled him, and repeatedly punched him. Evans’s assault caused E.B. to lose consciousness, and Evans then punched E.B. in the back and face while E.B. was unconscious. E.B. suffered a broken jaw as a result of the assault. Evans was aware that chokeholds were banned at Madison County Detention Center and that punching and strangling E.B. out of anger was an unreasonable use of force. Following the assault, Evans falsified an incident report and made false statements to the FBI. Specifically, Evans falsely claimed that he had ordered E.B. to turn around prior to the assault, that E.B. ignored his commands, and he deliberately omitted the fact that he had strangled E.B.
“The defendant is being held accountable for using excessive force to assault and strangle a man out of anger,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will continue to investigate and prosecute law enforcement officials who deprive individuals of their Constitutional rights.”
“When members of law enforcement engage in excessive force, they not only victimize an individual but do grave disservice to the dedicated work of so many others who honorably serve the public,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “Investigating and prosecuting this conduct is critically important, both to the victims and the Constitutional rights of all individuals.”
“Corrections officers have extremely difficult jobs; however, our community demands these officers conduct themselves professionally,” said Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office. “Today’s guilty plea is a reminder that the FBI and the Department of Justice will aggressively investigate and prosecute public officials found to have abused those they have been sworn to protect.”
The crime Evans pleaded guilty to carries a maximum sentence of 10 years imprisonment and a $250,000 fine. Evans is scheduled to be sentenced on July 29.
This case was investigated by the FBI’s Lexington RA, and is being prosecuted by Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky and Trial Attorney Andrew Manns of the Justice Department’s Civil Rights Division.
Addiction Treatment Facility Owner Convicted in $58 Million Health Care Fraud SchemeRead the Press Release
A federal jury convicted a Florida woman today in a health care fraud scheme that billed private health insurers more than $58 million for services that were never provided and were not medically necessary.
According to court documents and evidence presented at trial, Carie Lyn Beetle, 44, of Lake City, with others, unlawfully billed health insurers for over $58 million of addiction treatment services that were never rendered and/or were medically unnecessary at two facilities she operated: Real Life Recovery Delray LLC (RLR), a substance abuse treatment center, and A Safe Place LLC, dba Halfway There Florida LLC (HWT), a related recovery residence, also referred to as a “sober home.”
The evidence showed that Beetle and her co-conspirators recruited patients by providing them with kickbacks and bribes in the form of free or reduced rent, payment for travel, and other benefits in exchange for those patients agreeing to reside at HWT, attend drug treatment at RLR, and submit to regular and random drug testing (typically two or three times per week) at RLR and HWT. Beetle and her co-conspirators then billed the patients’ insurance plans for the substance abuse treatment and urine testing services the patients were purportedly receiving. In many instances, individual patients did not attend the billed treatment session. On such occasions, Beetle and her co-conspirators caused employees and patients of HWT/RLR to forge patients’ signatures on sign-in sheets to make it appear as though absent patients had attended treatment. In addition, Beetle and her co-conspirators caused expensive medically unnecessary urine testing to be billed for patients knowing that the tests were excessive, not used in treatment, and not reviewed by medical professionals.
The evidence further showed that Beetle laundered the proceeds knowing they derived from fraud and other crimes when she deposited a check from RLR.
Beetle was convicted of one count of conspiracy to commit health care fraud and wire fraud, and one count of money laundering. She is scheduled to be sentenced later this year and faces a maximum sentence of 20 years in prison on the conspiracy count and up to 10 years in prison on the money laundering 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 Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; Deputy Chief James D. Robnett of IRS-Criminal Investigation (IRS-CI); and Special Agent in Charge Matthew D. Line of IRS-CI’s Miami Field Office made the announcement.
The FBI, IRS-CI, the Florida Bureau of Insurance Fraud, and Amtrak Office of Inspector General investigated the case.
Senior Litigation Counsel Jim Hayes and Trial Attorneys Ligia Markman and Reginald Cuyler Jr. of the Criminal Division’s Fraud Section are prosecuting the case.
The National Rapid Response Strike Force and Los Angeles Strike Force lead the Department of Justice’s Sober Homes Initiative, which was announced in the 2020 National Health Care Fraud Takedown to prosecute defendants who exploit vulnerable patients seeking treatment for drug and/or alcohol addiction.
Three Florida Men Indicted for Rigging Bids and Defrauding the U.S. MilitaryRead the Press Release
Note: The defendants in this case, Lawrence O'Brien, Bruce LaRoche and Thomas Dailey, were acquitted by a jury of the charges alleged in the indictment described in the press release below.
A federal grand jury in the Middle District of Florida returned an indictment, which was unsealed today, charging three Florida men with conspiring to rig bids for customized promotional products to the U.S. Army and charging two of them with conspiring to defraud the United States. Two of the men were arrested early this morning, and all three appeared in court for initial appearances this afternoon.
According to court documents, Lawrence O’Brien, Bruce LaRoche and Thomas Dailey conspired to eliminate competition among their companies and secure sales for a pre-arranged winner. To carry out this scheme, they exchanged their company’s bid templates and submitted bids to military customers on each other’s behalf.
“Bid-rigging and fraud schemes targeting the military will not be tolerated – they are an affront to competition and the American taxpayer,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Consistent with a whole-of-government approach, the Antitrust Division will continue working closely with our law enforcement partners and Procurement Collusion Strike Force to protect taxpayer funds from collusion and fraud.”
“This indictment is another example of our commitment to protecting the contracting process from those who attempt to rig the system in their favor,” said Special Agent-in-Charge Michael Curran of the U.S. Army Criminal Investigation Division’s (CID) Major Procurement Fraud Field Office. “CID and our law enforcement partners will continue to protect the integrity of the contracting process.”
“Bid rigging is not a victimless crime; it cheats taxpayers out of the benefits of competition,” said Special Agent Paul Wachsmuth, Director of the Office of Procurement Fraud Investigations, U.S. Air Force Office of Special Investigations (OSI), Joint Base Anacostia-Bolling, D.C. “OSI is committed to working with the Antitrust Division and our law enforcement partners to hold companies and individuals accountable for practices that erode public trust and confidence in the government’s acquisition process.”
The indictment also alleges that LaRoche participated in a conspiracy to defraud the United States. According to the charge, LaRoche created shell companies, then he or his co-conspirators would submit sham bids from those companies. The bids appeared to be competitive because, for example, each listed a different salesperson, price or product description, despite the fact that all of the bids were drafted by the co-conspirators and the companies were owned or controlled by LaRoche. Additionally, the indictment alleges that O’Brien participated in a conspiracy with his own set of shell companies.
All three men are charged with violating the Sherman Antitrust Act. The maximum penalty for that charge is 10 years in prison and a $1 million criminal fine. LaRoche and O’Brien each face separate charges of conspiracy to defraud the United States. The maximum penalty for that charge is five years in prison and a $250,000 criminal fine.
The Antitrust Division’s Washington Criminal I Office is prosecuting the case, which was investigated with the assistance of the U.S. Army CID and U.S. Air Force OSI.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending, go to https://www.justice.gov/procurement-collusion-strike-force.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Louisiana Man Sentenced for Three Years’ Imprisonment for Dog Fighting VenturesRead the Press Release
A Louisiana man was sentenced today to three years in prison, three years of supervised release and a $1,000 fine for possession of an animal in an animal fighting venture.
Clay Turner, 61, of Loranger, pleaded guilty to possession of an animal for use in an animal fighting venture on June 30, 2021. According to court documents, Turner possessed and trained dogs for the purpose of having them participate in animal fighting ventures. On telephone calls obtained via court-authorized wiretaps, Turner and others discussed gambling on dog fights, arranging and participating in dog fights, sponsoring and exhibiting dogs in dog fights, training and housing dogs for the purposes of dog fighting, commerce in and transport of fighting dogs and the promotion of dog fights.
In October 2017, a federal law enforcement team consisting of agents from the U.S. Department of Agriculture Office of Inspector General (USDA-OIG), the FBI, the U.S. Marshals Service and other agencies executed a search warrant on Turner’s residence in Loranger. During the search, 33 dogs were found on the property, many of which had injuries, scarring and fresh wounds. Law enforcement also discovered a large collection of dog fighting paraphernalia, including:
- a water tank equipped to force dogs to swim to condition them for fighting;
- an electrified prod used in conjunction with the water tank;
- two treadmills equipped to force dogs to run to condition them for fighting;
- ledgers containing the weights and prices of dogs;
- “break sticks” and “flirt poles,” training equipment intended to enhance dogs’ jaw strength;
- pedigrees for the fighting dogs Turner bred; and
- photographs of dogs in inhumane conditions.
“Dog fighting is a particularly cruel form of animal abuse,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “Turner bred dogs solely to abuse them, through inhumane training methods and violent fights that left them scarred, severely injured or dead. These dogs deserved better. As this prosecution demonstrates, those who engage in this abhorrent conduct will be brought to justice.”
“This case lifts the veil on the brutal realities associated with this heinous activity,” said U.S. Attorney Duane A. Evans of the Eastern District of Louisiana. “This federal crime exploits animals for the sake of human entertainment and ill-gotten financial gains. Collectively, local, state and federal law enforcement partners are actively engaged in ending this criminal industry by holding accountable perpetrators who engage in dog fighting and rescuing victimized dogs from this appalling pastime.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” said Special Agent in Charge Dax Roberson of USDA-OIG. “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
“Animal cruelty is a heinous crime that deserves our ultimate condemnation and serious legal consequences for those who engage in it for ‘sport’ and/or profit,” said Special Agent in Charge Douglas A. Williams Jr. of the FBI New Orleans Field Division. “Today’s sentencing should serveas a reminder to those like Mr. Clay Turner who commit such criminal activity, that they will be held accountable. For their outstanding cooperation and great work, we thank our partners at the U.S. Attorney’s Office Eastern District of Louisiana, the USDA-OIG, and the Environment and Natural Resources Division’s Environmental Crimes Section in the criminal prosecution of those who participated in animal fighting ventures.”
Trial Attorneys Matthew D. Evans, Christopher Hale and former Senior Trial Attorney Jennifer L. Blackwell of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Jonathan Shih for the Eastern District of Louisiana prosecuted the case.
Former U.S. Department of Homeland Security Official Agrees to Pay $10,000 to Resolve Conflict-of-Interest and False Claims Act AllegationsRead the Press Release
Kenneth J. Buck, Ph.D., the former Executive Director of the Office of Management Integration at the Department of Homeland Security (DHS), has agreed to pay $10,000 to resolve allegations that he violated conflict-of-interest rules in connection with a DHS contract following his departure from the agency in 2016. The settlement, which is based on his ability to pay, also resolves allegations that Buck violated the False Claims Act by submitting, or causing others to submit, false invoices to DHS to conceal his involvement with the contract following his departure from DHS.
Among other things, the Ethics Reform Act of 1989 imposes post-employment restrictions on certain federal officials, including a mandatory one-year “cooling off period” during which former officials are prohibited from communicating directly with their former agency on behalf of another party with the intent to influence agency action. The settlement announced today resolves allegations that Buck violated this rule by communicating directly with a now-former DHS official with the intent to influence agency action regarding a DHS contract with Intelligent Fiscal Optimal Solutions LLC (iFOS), under which Buck was engaged as a subcontractor. According to the government’s allegations, Buck informed a now-former DHS official that he planned to leave DHS and accept an engagement with iFOS, and less than one week later that other DHS official selected iFOS for a no-bid contract. The government alleged that, during his one-year cooling off period, Buck had extensive communications with the DHS official on behalf of iFOS, which Buck and the other DHS official sought to conceal. Finally, the government alleged that Buck and iFOS violated the False Claims Act by submitting false invoices to DHS in which work performed by Buck was billed under the name of another iFOS employee, despite the fact that Buck had not completed a mandatory background investigation required for all personnel who worked on the DHS contract.
“The federal government’s conflict-of-interest rules are essential to ensuring that the federal government’s operations, including the award of contracts, are conducted fairly and free of undue influence,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable those who violate these important safeguards, whether they are current or former federal government employees.”
“We appreciate our partnership with the Department of Justice,” said Inspector General Dr. Joseph V. Cuffari of DHS. “This settlement sends a clear message that corruption in the ranks at DHS will not be tolerated.”
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 DHS Office of Inspector General’s Major Fraud and Corruption Unit. The matter was handled by Senior Trial Counsel Alicia J. Bentley of the Civil Division, with substantial investigative assistance from Special Agent Asher Shapiro of DHS-OIG.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Florida Man Sentenced to Prison for Promoting Nationwide Tax Fraud SchemeRead the Press Release
A Florida man was sentenced to 51 months in prison today for his role in a nationwide tax fraud scheme that involved more than 200 participants in at least 19 states.
According to court documents and statements made in court, Aaron Aqueron, of Clermont, recruited clients to the fraud scheme by convincing them that their mortgages and other debts entitled them to tax refunds. Aqueron collected tax and financial information from the clients to send to co-conspirators, who prepared tax returns and other tax documents to submit to the IRS. These tax returns falsely claimed that banks and other financial institutions had withheld large amounts of income tax from the participants, thereby entitling the clients to a refund. In reality, the financial institutions had not paid any income to, or withheld any taxes from, these individuals. In total, the tax returns filed by Aqueron’s clients sought more than $14.6 million in tax refunds and caused the IRS to actually pay out more than $7.6 million.
As part of his plea, Aqueron admitted he and his co-conspirators received fees from his clients ranging from $10,000 to $15,000 each. Aqueron further admitted he did not report on his 2015 individual tax return the income he received from the scheme. Aqueron also personally filed false tax returns for other years on which he fraudulently claimed that he was entitled to tax refunds. In response to one of these false tax returns, the IRS issued Aqueron a refund of $193,347.97.
Aqueron further admitted that, pursuant to the fraud scheme, he attempted to obstruct the IRS’s efforts to collect the tax refunds it issued to his clients. Aqueron and his co-conspirators coached clients on ways to obstruct IRS collection efforts. For example, after learning one client had begun to receive letters from the IRS about collections, Aqueron instructed the client: “Make sure you move money out of your name and out of the banking institutions and be smart.” Aqueron also attempted to obstruct IRS efforts to collect his own fraudulently-obtained refund, including by transferring money into a trust.
Last month, the main promoter of the fraud scheme, Iran Backstrom, was sentenced to more than eight years in prison. Backstrom’s second-in-command, Mehef Bey, was sentenced to 11 years in prison.
In addition to the term of imprisonment, the district judge also ordered Aqueron to serve three years of supervised release and pay approximately $5.9 million in restitution to the IRS.
Acting Deputy Assistant Attorney General Stuart M. Goldberg and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Melissa S. Siskind, Kavitha Bondada and Isaiah Boyd III of the Tax Division, and Assistant U.S. Attorney Chauncey A. Bratt for the Middle District of Florida, are prosecuting the case.
Justice Department Secures Agreement with CVS Pharmacy Inc., to Make Online COVID-19 Vaccine Registration Accessible for People with DisabilitiesRead the Press Release
The Justice Department and the U.S. Attorney’s Office for the District of Rhode Island today announced a settlement agreement with CVS Pharmacy Inc., under the Americans with Disabilities Act (ADA) that will eliminate barriers preventing people with certain disabilities from getting information about COVID-19 vaccinations and booking vaccination appointments online. CVS is the country’s largest retail pharmacy, with nearly 10,000 locations. Today’s resolution is the department’s fifth agreement on the critical issue of COVID-19 vaccination website accessibility, following settlement announcements with Rite Aid Corporation, Hy-Vee Inc., The Kroger Co. and Meijer Inc.
The department found that CVS’s COVID-19 vaccine registration portal, currently located at https://www.cvs.com/immunizations/covid-19-vaccine, was not accessible to people with certain disabilities, including those who use screen reader software or have trouble using a mouse. For instance, the types of vaccine appointments offered (which included influenza, pneumonia, and others, in addition to the COVID-19 vaccine) were not read audibly to screen reader users at the beginning of the scheduling process. Further, on the page where users pick a time for their appointment, screen reader users were told that all available times were “checked,” even though the user had not made any selection. Additionally, people who use the “Tab” key instead of a mouse to navigate websites were not able to navigate past a request for insurance information in the registration process.
“Now more than ever, we must ensure web accessibility for people with disabilities seeking access to critical needs and services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are working aggressively to identify and remove barriers that prevent people with disabilities from privately and independently securing potentially life-saving COVID-19 vaccines. We will continue to work towards the ADA’s promise of equal access during the ongoing global pandemic.”
“While web accessibility is always important, when it comes to critical health services like COVID-19 vaccination, making sure that everyone — regardless of disability — can access information and care is essential,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “This office is committed to vigorously enforcing the ADA to eliminate unnecessary barriers that stand in the way of lifesaving care.”
Under today’s settlement, CVS will conform web content about the COVID-19 vaccine, including the forms for scheduling an appointment to get the vaccine, to the Web Content Accessibility Guidelines (WCAG), Version 2.1, Level AA. WCAG is a set of voluntary industry guidelines for making information on a website accessible to users with disabilities. CVS also must regularly test the pages of its website that include vaccine scheduling and information about the COVID-19 vaccine, and quickly fix any problems that keep people with disabilities from being able to use these pages.
This matter was handled jointly by the Disability Rights Section of the Civil Rights Division and the U.S. Attorney’s Office for the District of Rhode Island. Title III of the ADA requires public accommodations like drugstores to provide individuals with disabilities with full and equal enjoyment of goods and services, such as vaccines. The ADA also requires public accommodations to ensure effective communication with people with disabilities, including by using auxiliary aids and services like accessible technology.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint. Anyone in the District of Rhode Island may also report civil rights violations directly to the U.S. Attorney’s Office for the District of Rhode Island at https://www.justice.gov/usao-ri-civil-rights-enforcement or (401) 709-5000.
Justice Department Announces New Rule to Modernize Firearm DefinitionsRead the Press Release
Today, the Department of Justice announced that it has submitted to the Federal Register the “Frame or Receiver” Final Rule, which modernizes the definition of a firearm. Once implemented, this rule will clarify that parts kits that are readily convertible to firearms are subject to the same regulations as traditional firearms. These regulatory updates will help curb the proliferation of “ghost guns,” which are often assembled from kits, do not contain serial numbers, and are sold without background checks, making them difficult to trace and easy to acquire by criminals.
“One year ago, the Department committed to address the proliferation of ghost guns used in violent crimes,” said Attorney General Merrick B. Garland. “This rule will make it harder for criminals and other prohibited persons to obtain untraceable guns, will help ensure that law enforcement officers can retrieve the information they need to solve crimes, and will help reduce the number of untraceable firearms flooding our communities. I commend all our colleagues at the ATF who have worked tirelessly over the past 12 months to get this important rule finalized, and to do it in a way that respects the rights of law-abiding Americans.”
The rule goes into effect 120 days from the date of publication in the Federal Register, and once implemented, will address the proliferation of these un-serialized firearms in several ways. These include:
- To help keep guns from being sold to convicted felons and other prohibited purchasers, the rule makes clear that retailers must run background checks before selling kits that contain the parts necessary for someone to readily make a gun.
- To help law enforcement trace guns used in a crime, the rule modernizes the definition of frame or receiver, clarifying what must be marked with a serial number – including in easy-to-build firearm kits.
- To help reduce the number of unmarked and hard-to-trace “ghost guns,” the rule establishes requirements for federally licensed firearms dealers and gunsmiths to have a serial number added to 3D printed guns or other un-serialized firearms they take into inventory.
- To better support tracing efforts, the rule requires federal firearms licensees, including gun retailers, to retain records for the length of time they are licensed, thereby expanding records retention beyond the prior requirement of 20 years. Over the past decade, ATF has been unable to trace thousands of firearms – many reportedly used in homicides or other violent crimes – because the records had already been destroyed. These records will continue to belong to, and be maintained by, federal firearms licensees while they are in business.
As the final rule explains, from January 2016 to December 2021, ATF received approximately 45,240 reports of suspected privately made firearms recovered by law enforcement, including in 692 homicide or attempted homicide investigations. The chart below demonstrates the total annual numbers of suspected PMFs recovered by law enforcement over the past six years:
Today’s announcement marks one year since the Attorney General directed the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to issue a proposed rule within 30 days that would address the proliferation of unmarked firearms increasingly being used in crimes. On May 7, 2021, the Department of Justice issued a notice of proposed rulemaking, and during the 90-day open comment period, the ATF received more than 290,000 comments, the highest number of comments submitted to a proposed rule in ATF’s history. Today’s announcement is also the latest in a series of steps the department has taken to address violent crime and gun violence.
The final rule, as submitted to the Federal Register, can be viewed here: https://www.atf.gov/rules-and-regulations/definition-frame-or-receiver
To learn more about the rulemaking process, please see: https://www.federalregister.gov/uploads/2011/01/the_rulemaking_process.pdf
For more information, see the attached fact sheet.
Former Department of Homeland Security Employee Convicted of Scheme to Defraud the United StatesRead the Press Release
A former Acting Branch Chief of the Information Technology Division of the U.S. Department of Homeland Security (DHS-OIG) was convicted today by a jury of multiple federal charges stemming from the theft of proprietary software and sensitive databases from the U.S. government.
Murali Y. Venkata, 56, of Aldie, Virginia, was convicted of conspiracy to defraud the U.S. government, theft of government property, wire fraud, aggravated identity theft, and obstruction. Venkata, along with co-conspirators Charles K. Edwards, who previously served as the Acting Inspector General of DHS-OIG, and Sonal Patel, another official at DHS-OIG, executed a scheme to steal confidential and proprietary software from the government along with the personally identifying information (PII) of hundreds of thousands of federal employees. Venkata worked for DHS-OIG from June 2010 until he was placed on administrative leave in October 2017 following the charges in this case, including serving for a period as an Acting Branch Chief in the Information Technology Division. Before he joined DHS-OIG, Venkata worked at the U.S. Postal Service’s Office of Inspector General (USPS-OIG). At both agencies, Venkata had access to software systems, including one used for case management and other systems holding PII of federal employees.
Edwards pleaded guilty in January 2022 and Patel pleaded guilty in April 2019 to stealing property from the U.S. government for the purpose of developing a commercial version of a case management system to be offered for sale to government agencies. Venkata was convicted for his role in the conspiracy, which included exfiltrating proprietary source code and sensitive databases from DHS-OIG facilities, as well as assisting Edwards in setting up three computer servers in Edwards’s residence so that software developers in India could access the servers remotely and develop the commercial version of the case management system.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Inspector General Joseph V. Cuffari of DHS-OIG, and Inspector General Tammy Whitcomb of USPS-OIG made the announcement.
Senior Litigation Counsel Victor R. Salgado and Trial Attorney Celia Choy of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Christine M. Macey, of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia prosecuted the case. Assistant U.S. Attorney David B. Kent, also of the Fraud, Public Corruption, and Civil Rights Section for the District of Columbia, provided significant assistance in the investigation of this matter.
Former Caltrans Contract Manager Pleads Guilty to Bid Rigging and BriberyRead the Press Release
A former contract manager for the California Department of Transportation (Caltrans) pleaded guilty today for his role in a bid-rigging and bribery scheme involving Caltrans improvement and repair contracts.
According to a plea agreement filed today in the U.S. District Court for the Eastern District of California in Sacramento, Choon Foo “Keith” Yong and his co-conspirators engaged in a conspiracy, from early 2015 through late 2019, to thwart the competitive bidding process for Caltrans contracts to ensure that companies controlled by Yong’s co-conspirators submitted the winning bid and would be awarded the contract. Yong is also charged with accepting bribes while working for Caltrans, a California state agency that receives significant federal funding. Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits Yong received exceeded $800,000. In addition to his guilty plea, Yong agreed to pay restitution and cooperate with the ongoing investigation.
“Today’s guilty plea is the first in the Antitrust Division’s ongoing investigation into bribery and bid rigging at Caltrans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Given the Infrastructure Investment and Jobs Act’s $1.2 trillion authorization and the critical role of transportation infrastructure in our nation, rooting out bid-rigging schemes that cheat the competitive bidding process remains a top priority for the division and its Procurement Collusion Strike Force partners.”
Yong received more than $800,000 of bribes in the form of cash payments, wine, furniture, and remodeling services on his home.Yong is scheduled to be sentenced on Aug. 22 by U.S. District Judge Kimberly J. Mueller. For the bid-rigging conspiracy, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $1 million or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. For bribery concerning programs receiving federal funds, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $250,000 or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and U.S. Sentencing Guidelines.
Today’s guilty plea is the first to result from a joint investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Field Office as part of the Justice Department’s Procurement Collusion Strike Force (PCSF).
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending.
EOIR Announces Appointment of Mary Cheng as Deputy DirectorRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the appointment of Mary Cheng as the agency’s Deputy Director. Judge Cheng has served EOIR since 2009, including as a Deputy Chief Immigration Judge for the past five years.
“Judge Cheng brings a welcome combination of experience and expertise, preparing her for certain success as EOIR’s deputy director,” EOIR Director David L. Neal said. “Her experience on the immigration bench, her expertise as a managing judge, and her appreciation for the view from both counsels’ tables perfectly position her to help lead the agency to a reinvigorated commitment to our mission and to public service.”
As Deputy Director, Judge Cheng will assist Director Neal in supervising and managing all EOIR components, and developing and implementing agency policies and short- and long-term strategies.
Since April 2021, Judge Cheng has served as the Regional Deputy Chief Immigration Judge for the Eastern Region at EOIR. She previously served as a Deputy Chief Immigration Judge from 2017 to 2021, and she was the Acting Principal Deputy Chief Immigration Judge from August 2020 to February 2021. Judge Cheng has also served in the New York Immigration Court both as an Assistant Chief Immigration Judge from 2015 to 2017, and as an Immigration Judge from 2009 to 2015. Before joining EOIR, she served as Assistant Chief Counsel for the Department of Homeland Security, Immigration and Customs Enforcement, from 2002 to 2009; and before that, she practiced immigration law in New York from 2000 to 2002. Judge Cheng received her Bachelor of Arts from New York University and a Juris Doctor from the New York Law School. She is a member of the New York State Bar.
Washington State Man Pleads Guilty to Hate Crime and False Statement ChargesRead the Press Release
A Washington state man pleaded guilty to hate crime and false statement charges in the U.S. District Court for the Western District of Washington.
Jason DeSimas, 47, of Tacoma, pleaded guilty to one crime of committing a hate crime for his participation in the assault of T.S., a Black man, which occurred because of his race. DeSimas assaulted T.S. at a bar in Lynnwood, Washington, on Dec. 8, 2018. Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division and U.S. Attorney Nicholas W. Brown of the Western District of Washington made the announcement.
In his plea agreement, DeSimas admitted that, at the time of the assault, he was a prospective member of a white supremacist group. On Dec. 8, 2018, DeSimas entered a bar in Lynnwood, Washington, with others, including members of the white supremacist hate group and its support group. While in the bar, DeSimas assaulted T.S, a Black man who was serving as the disc jockey at the bar. DeSimas called T.S. a racial slur, and punched him in the face, knocking T.S. to the floor. Others punched, kicked, and/or stomped on T.S., while continuing to call T.S. racial slurs. Two bystanders attempted to intervene to help T.S. and stop the assault. Both bystanders were assaulted by members of the group, and both sustained injuries.
In addition to the hate crime charge, DeSimas pleaded guilty to making false statements to FBI agents about circumstances surrounding the assault. Specifically, DeSimas falsely claimed to the agents that neither he nor anyone else called T.S. a racial slur during the assault. This statement was false, in that DeSimas knew he and others called T.S. a racial slur before, during, and after the assault. DeSimas made this false statement to the FBI because he wanted to cover up the motive for the assault, which was the bias that he and others had against T.S.’s race.
DeSimas will be sentenced on July 8. The hate crime charge carries a maximum penalty of ten years in prison. The false statement charge carries a maximum penalty of up to five years in prison.
DeSimas was charged in an indictment that was unsealed on Dec. 18, 2020. The seven-count indictment also charged three other men, each aiding and abetting one another, with punching and kicking T.S. while making derogatory comments about his race. The indictment further charged DeSimas and the three other men with assaulting two men who intervened to protect T.S. during the attack, as well as with making false statements to the FBI during the course of their investigation. One of these three men, Daniel Dorson, previously pleaded guilty in this matter.
This case was investigated by the FBI, with the support of the Snohomish County Sheriff’s Office. Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Rebecca Cohen for the Western District of Washington are prosecuting the case.
An indictment is merely an allegation, and the two remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Indiana Towns Agree to Improve Sewer Systems to Stop Discharges of Raw SewageRead the Press Release
The Sanitary District of Highland, Indiana, and the Town of Griffith, Indiana, have agreed to construction projects and capital investments that will eliminate discharges of untreated sewage from their sewer systems into nearby water bodies, including the Little Calumet River.
In two separate consent decrees, Highland and Griffith have each agreed to implement plans that will significantly increase the amount of wastewater they send to the neighboring town of Hammond for treatment and eliminate points in their sewer systems that overflow when their systems become overloaded. Together, the towns will spend about $100 million to improve their sewer systems. In addition, Highland will pay a civil penalty of $175,000 and Griffith will pay a civil penalty of $33,000.
The two consent decrees would resolve the violations alleged in the underlying complaint filed by the United States and the state of Indiana. The complaint alleges that Highland’s sanitary sewage collection system overflowed on 257 days since 2012, resulting in discharges of untreated sewage into the Little Calumet River or a tributary to the river. The complaint also alleges that Griffith discharged sewage into a wetland adjacent to the Little Calumet River on 16 days since 2013. Finally, the complaint alleges that both Highland and Griffith failed to comply with previous orders by EPA to stop these illegal discharges. The defendants were joined in the same cause of action because the claims against Highland and Griffith are similar in nature and both communities rely on the Sanitary District of Hammond to treat all of their wastewater.
“Cities and towns must invest in adequate infrastructure to protect the integrity of our nation’s waters,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “These settlements require meaningful investments that will improve the health of the Little Calumet River and surrounding areas.”
“Highland and Griffith are part of an area of northwest Indiana historically overburdened by pollution,” said Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance Assurance. “These infrastructure improvements will prevent untreated sewage from entering the region’s waterbodies, thereby improving water quality as well as the quality of life for the people who live here.
“These consent decrees are an excellent example of how communities can work together to provide a cleaner healthier environment for the citizens of Northwest Indiana to use and enjoy.” said Commissioner Brian Rockensuess of the Indiana Department of Environmental Management.
Under the proposed consent decrees, Highland and Griffith will also implement plans that will improve operations and maintenance of their sewer system and ability to address and respond to any unforeseen sanitary sewer overflows in the future. Highland and Griffith will submit semi-annual progress reports to the United States and the state until all work has been completed and all of the reports and deliverables required will be available to the public on their municipal websites.
The implementation of these consent decrees will prevent hundreds of thousands of gallons of raw sewage carrying harmful pollutants, such as E. coli, from being discharged to the Little Calumet River. These reductions in pollutants will improve water quality in the Little Calumet River.
The proposed agreements are subject to a 30-day public comment period and final court approval after publication in the Federal Register.
To view the consent decrees or to submit a comment, visit the Department of Justice website at: www.justice.gov/enrd/Consent_Decrees.html.