District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Justice Department Will Award More Than $21 Million to Prevent and Respond to Hate CrimesRead the Press Release
The Department of Justice today announced that the Office of Justice Programs (OJP) will award more than $21 million to investigate and prosecute hate crimes and assist hate crime victims. Funding will help state, local and tribal agencies and community organizations address an alarming rise in violent and property crimes committed on the basis of race, color, national origin, sexual orientation, gender, gender identity or disability.
“Hate crimes instill fear across entire communities. They have profoundly negative and unacceptable effects on our society,” said Associate Attorney General Vanita Gupta. “The department is committed to using all tools at our disposal to combat unlawful acts of hate. These awards will provide state, local and tribal agencies additional support and critical resources to address hate crimes and their far-reaching effects.”
Today’s announcement comes on the 12th anniversary of the enactment of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, signed into law by President Barack Obama in 2009. Shepard, a gay 21-year-old Wyoming man, and Byrd, a 49-year-old African-American man from Jasper, Texas, were slain in separate incidents in 1998. Shepard was beaten, tortured and left to die near Laramie, Wyoming. His killers were convicted of murder and are serving two life sentences. Byrd was tied to the back of a pick-up truck by white supremacists and dragged to his death. Two of the murderers were executed for the brutal crime. The Shepard-Byrd Hate Crimes Prevention Act enables the Justice Department to prosecute crimes motivated by race, color, religion and national origin without having to show that the victim was engaged in a federally protected activity. The Act also empowers the department to prosecute hate crimes committed because of a person’s sexual orientation, gender, gender identity or disability.
OJP’s Bureau of Justice Assistance (BJA) is administering a new program named in honor of Shepard and Byrd. The Act makes grant funds available to improve the investigation and prosecution of hate crimes. Through the Shepard-Byrd solicitation and the related Collaborative Responses to Hate Crimes program that seeks to address precipitous increases in hate crimes, OJP’s BJA will award $8.4 million in site-based funding and training and technical assistance.
“Acts of violence and destruction motivated by hate and bias cause lasting harm to victims, terrorize entire communities and divide our nation, leaving deep scars and stalling the march toward equal justice,” said Acting Assistant Attorney General Amy L. Solomon of OJP. “We must work together to bridge the gaps of empathy, root out intolerance in all its forms and send a clear message that the future belongs to every American, no matter what they look like, how they worship and whom they love.”
BJA will also make $1.5 million in site-based awards under the Emmett Till Unsolved Civil Rights Crimes Reauthorization Act of 2016 to help solve cold case civil rights murders that occurred before Dec. 31, 1979. Till, an African-American teenager, was visiting his family in Money, Mississippi, during the summer of 1955 when he was abducted, beaten and killed. Two local men were prosecuted for the crime but were acquitted by an all-white jury, though they later confessed to the killing. Till’s case helped galvanize the nascent civil rights movement. BJA will award an additional $1.8 million to offer training and technical assistance to other communities seeking to resolve these cases, including making microgrants to the field.
OJP’s Office for Victims of Crime (OVC) has awarded $2 million to respond to the needs of individuals and communities victimized by hate crime. OVC’s Services to Support Victims of Hate Crime and Strengthen Communities program funds innovative, field-generated projects that promote awareness, healing, reconciliation, service access and resource development. OVC is also providing technical assistance to state, local and tribal service providers to help identify and serve hate crime victims.
OJP’s National Institute of Justice (NIJ) has awarded almost $7.5 million to support research designed to develop a better understanding of the phenomenon known as domestic radicalization and to advance evidence-based strategies for preventing and intervening in acts of domestic terrorism. NIJ recently concluded projects to construct a database of individuals arrested or charged with hate crimes and to develop detailed, nationally representative data on hate crime incidents known to police.
For more information about efforts across the Department of Justice to address hate crime, please visit https://www.justice.gov/hatecrimes.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Justice Department Reaches Agreement with Vermont Department of Corrections to Improve Access for Inmates with DisabilitiesRead the Press Release
The Civil Rights Division and U.S Attorney’s Office for the District of Vermont today announced a settlement agreement with the Vermont Department of Corrections (VDOC) to ensure that inmates with disabilities have equal access to Vermont’s correctional facilities, programs, services and activities. The agreement resolves the department’s investigation into complaints that VDOC does not provide accessible facilities for inmates with mobility disabilities, and does not ensure effective communication for inmates with hearing disabilities, as required under Title II of the Americans with Disabilities Act (ADA).
The settlement agreement protects the rights of inmates with disabilities to equal access to educational, counseling and recreational programs, as well as to prison facilities such as visitation areas, libraries, medical facilities, intake processing, accessible cells and routes to and through prison buildings. The agreement also requires VDOC to ensure that inmates with hearing disabilities receive appropriate auxiliary aids and services, such as sign language interpreters, video telephones and hearing aids when necessary to ensure effective communication. Under the settlement agreement, VDOC must also make reasonable modifications to its policies, practices and procedures to accommodate inmates with disabilities.
“The Americans with Disabilities Act mandates that individuals with disabilities have equal access to state-provided programs, services, facilities and activities,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to ensuring that correctional institutions eliminate physical and communication barriers that prevent inmates with disabilities from participating fully in prison programs.”
“People with disabilities in Vermont deserve equal access, and that does not change when they are incarcerated,” said Acting U.S. Attorney Jonathan A. Ophardt for the District of Vermont. “The Vermont Department of Corrections has now committed to removing barriers to participation for inmates with disabilities in VDOC facilities, including inmates who have physical and communication disabilities. Our office remains dedicated to supporting efforts to improve access and inclusion for everyone in Vermont.”
Title II of the ADA requires state government entities like VDOC to provide inmates with disabilities, including inmates with mobility and hearing disabilities, with an equal opportunity to participate in their programs, services, and activities. The ADA also requires public entities to make reasonable modifications to policies for inmates with disabilities when needed.
As a result of the agreement announced today, VDOC will:
- Make structural changes to prison buildings and facilities to comply with the ADA Standards for Accessible Design;
- Implement a process that begins at intake, and continues throughout incarceration, to identify and accommodate inmates with disabilities;
- Develop individualized communication assessments and plans setting out the auxiliary aids and services necessary to ensure effective communication for inmates with hearing disabilities;
- Identify and remediate physical barriers to access for inmates with mobility disabilities to ensure access to accessible prison cells and work assignments;
- Provide training on Title II of the ADA to correctional staff and management responsible for evaluating or making decisions about inmate requests for accommodations;
- Engage in compliance reporting and monitoring with the Justice Department; and
- Pay $80,000 to compensate current and former inmates who were harmed.
This matter was handled jointly by Assistant U.S. Attorney Jules Torti of the U.S. Attorney’s Office for the District of Vermont and the Disability Rights Section of the department’s Civil Rights Division.
July 26 marked the 31st Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit http://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 http://www.ada.gov/complaint. Additional information about the U.S. Attorney’s Office Civil Rights Programs is available at http://www.justice.gov/usao-vt.
Justice Department Announces Multi-Million Dollar Civil Settlement in Principle in Mother Emanuel Charleston Church Mass ShootingRead the Press Release
Today, the Department of Justice announced that it has reached an agreement in principle to settle the civil cases arising out of the June 2015 Mother Emanuel AME Church mass shooting in Charleston, South Carolina.
These settlements will resolve claims by 14 plaintiffs arising out of the shooting. Plaintiffs agreed to settle claims alleging that the FBI was negligent when it failed to prohibit the sale of a gun by a licensed firearms dealer to the shooter, a self-proclaimed white supremacist, who wanted to start a “race war” and specifically targeted the 200-year-old historically African-American congregation. For those killed in the shooting, the settlements range from $6 million to $7.5 million per claimant. For the survivors, the settlements are for $5 million per claimant.
The parties have been in litigation since 2016, including before the district court and the federal court of appeals.
“The mass shooting at Mother Emanuel AME Church was a horrific hate crime that caused immeasurable suffering for the families of the victims and the survivors,” said Attorney General Merrick B. Garland. “Since the day of the shooting, the Justice Department has sought to bring justice to the community, first by a successful hate crime prosecution and today by settling civil claims.”
“The nation grieved following the mass shooting at Mother Emanuel, and no one was more profoundly affected than the families of the victims and the survivors we have reached a settlement with today,” said Associate Attorney General Vanita Gupta. “The department hopes that these settlements, combined with its prosecution of the shooter will bring some modicum of justice to the victims of this heinous act of hate.”
“The department is pleased to bring closure to this long-running litigation,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “These settlement agreements represent another chapter in the justice system’s efforts to address this horrific event, following the government’s prosecution and conviction of the shooter for federal hate crimes.”
On June 17, 2015, Mother Emanuel congregants welcomed a stranger who had entered their church. They invited him to participate in their Wednesday night bible study. Tragically, at the close of the bible study, the young man they had welcomed killed nine people, including Mother Emanuel’s pastor, Reverend Clementa Pinckney, also a South Carolina State Senator.
The families of the Emanuel Nine, as well as the five survivors who were inside the church at the time of the shooting, sued the government. They sought to recover for wrongful death and physical injuries arising from the shooting. Plaintiffs asserted that the FBI’s National Instant Criminal Background Checks System (NICS) failed to timely discover that the shooter was a person prohibited by federal law from possessing a firearm. Plaintiffs alleged that because of this delay, the shooter was able to purchase the handgun that he used to commit the atrocity.
The FBI and NICS play a crucial role in combating gun violence. Since this tragic shooting, the FBI has worked to strengthen and improve the background check process. The department and FBI are also actively working to combat gun violence, which is a significant aspect of the department’s comprehensive violent crime reduction strategy. After the shooting, the department prosecuted the shooter for federal hate crimes and obtained a conviction.
Under applicable law, the court must approve the settlements for many of the plaintiffs. All parties expect that the court will agree that these settlements are fair and reasonable. This case was handled by the Justice Department’s Civil Division.
Grand Jury indicts local man and woman on numerous firearms chargesRead the Press Release
ST. LOUIS – On March 3, 2021, a federal grand jury indicted Tishonda Turner for knowingly making a false and fictitious statement to a firearms dealer, which statement was intended and likely to deceive the licensed dealer, and Freddie Tilmon for knowingly possessing a firearm as a convicted felon.
According to the indictment, on or about July 16, 2020, in St. Louis County, within the Eastern District of Missouri, and again on or about August 8, 2020, Turner in connection with the acquisition of one or more firearms from The Range STL West, a licensed dealer, did knowingly make a false and fictitious written statement to the dealer, which statement was intended and likely to deceive said licensed dealer. Turner represented that she was the actual buyer of one or more firearms, when, in fact, she was acquiring the firearms on behalf of Freddie Tilmon.
On November 21, 2020, Mr. Tilmon was pulled over and arrested while driving in Sandy Springs, Georgia. Officers later discovered a firearm on the driver’s seat floorboard. The firearm was loaded and had an extended magazine. A records check revealed that the firearm was purchased at the Range STL West on August 08, 2020. Tilmon was also subsequently indicted in the Northern District of Georgia for knowingly possessing a firearm as a convicted felon.
On October 14, 2021, the United States Marshals Service arrested Tilmon in St. Louis County pursuant to the indictment. At the time of his arrest, Tilmon was discovered to be in possession of a loaded 9mm, with an extended magazine. Tilmon was additionally charged for illegally possessing the firearm when arrested by the Marshals Service. Tilmon is prohibited from possessing firearms due to a previous criminal conviction.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshals Service.
Former Louisiana Police Officer Indicted for Assaulting an Arrestee and Attempting to Cover It UpRead the Press Release
A federal grand jury in Shreveport, Louisiana, returned an indictment charging Jared Desadier, 43, with assaulting an arrestee in Ouachita Parish. The two-count indictment charges Desadier with willfully depriving an individual of his right to be free from unreasonable seizure and with witness tampering.
The indictment alleges that, on April 21, 2020, Desadier, while acting in his official capacity as an officer of the Monroe Police Department, used unjustified force against an arrestee by kicking him in the area of his face and head, and that the assault caused bodily injury and involved the use of a dangerous weapon (a shod foot). The indictment further alleges that Desadier attempted to cover up his misconduct by engaging in misleading conduct towards his supervisors. Specifically, the indictment alleges that after the arrestee complained in the presence of supervising officers that he had been assaulted, Desadier claimed that he had not touched or harmed the arrestee and blamed the arrestee’s injuries on a fall.
If convicted, Desadier faces a maximum sentence of 10 years of imprisonment for the deprivation-of-rights offense and 20 years of imprisonment for the witness tampering offense.
Wednesday’s indictment was announced by Acting U.S. Attorney Alexander C. Van Hook for the Western District of Louisiana, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and Special Agent in Charge Douglas Williams FBI New Orleans.
The case is being investigated by the FBI’s New Orleans Field Office. The case is being prosecuted by Assistant U.S. Attorney Brian Flanagan of the Western District of Louisiana and Trial Attorney Thomas Johnson of the Civil Rights Division.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
COVID-19 Task Force Nets Florida Duct Cleaning Company; Settles False Claims Act Allegations Relating to Improper Paycheck Protection Program LoanRead the Press Release
Sextant Marine Consulting LLC (Sextant), a Florida-based duct cleaning company, has agreed to pay $30,000 in damages and civil penalties to settle allegations that it violated the False Claims Act by obtaining more than one Paycheck Protection Program (PPP) loan in 2020. Sextant also repaid the duplicative PPP funds in full to its lender, relieving the U.S. Small Business Administration (SBA) of liability to the lender for the federal guaranty of approximately $170,000 on the improper loan.
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 Sextant applied for and received a second, duplicative PPP loan in 2020.
“PPP loans were intended to provide critical relief to small businesses so that they could retain employees and keep their doors open,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will ensure that those who improperly obtain federally guaranteed PPP loans are held accountable.”
“The Paycheck Protection Program is intended to provide a lifeline to the nation’s small businesses and its employees” said Inspector General Hannibal “Mike” Ware of the SBA Office of Inspector General (OIG). “OIG will aggressively investigate allegations of wrongdoing in SBA’s pandemic response programs. I want to thank the Department of Justice for its dedication to achieving this settlement.”
“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to uncover and forcefully respond to Paycheck Protection Program fraud,” said General Counsel Peggy Delinois Hamilton of the SBA Office of the General Counsel. “SBA is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those taking advantage of SBA COVID-19 assistance programs.”
Wednesday’s civil settlement includes the resolution of a claim brought under the qui tam or whistleblower provisions of the False Claims Act by J. Bryan Quesenberry. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Mr. Quesenberry will receive $4,500. The matter remains under seal as to allegations against entities other than Sextant.
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 Southern District of Florida, 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 James A. Weinkle of the Southern District of Florida.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Thirteen Defendants Plead Guilty in $126 Million Compounding Fraud SchemeRead the Press Release
Thirteen defendants, including three compounding pharmacy owners, three physicians, two pharmacists, and three patient recruiters, pleaded guilty in the Southern District of Texas to a years-long, multi-state scheme to defraud the U.S. Department of Labor’s (DOL) Office of Workers’ Compensation Programs (OWCP) and TRICARE.
According to court documents, the defendants submitted false and fraudulent claims to the OWCP and TRICARE for prescriptions for compounded and other drugs prescribed to injured federal workers and members of the armed forces. The defendants also paid kickbacks to patient recruiters and to physicians to induce them to prescribe these drugs. The defendants chose the particular compounds and other drugs based not on the patients’ medical needs but in light of the amount of reimbursement for the drugs. The drugs were then mailed to patients, even though the patients often never requested, wanted, or needed them.
“The health care fraud and kickback scheme executed by these defendants manipulated federal health care programs for personal gain without regard for patient need or medical necessity,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “I applaud our prosecutors and law enforcement partners for their hard work on this investigation and prosecution. The Department of Justice is committed to holding accountable those whose unlawful conduct targets federal health care programs.”
“Last week’s guilty pleas are a testament to the dedication and determination of the investigative and legal teams,” said Acting Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector General (USPS-OIG), Southern Area Field Office. “The Postal Service spends hundreds of millions of dollars annually on health care related costs and these monies are critical to those who legitimately need medical services. As in this case, our criminal investigators will diligently pursue any individual or organization intent on defrauding the Postal Service with an eye on both federal prosecution and returning lost monies to the affected program.”
“These defendants put illegal profits above patients’ safety,” said Special Agent-in-Charge Steve Grell of the DOL Office of Inspector General (DOL-OIG), Dallas Region. “Last week’s pleas highlight our commitment to working with our law enforcement partners and OWCP to protect the integrity of DOL’s benefit programs.”
“As the investigative arm of the Department of Defense Office of Inspector General, the Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of the TRICARE program,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “The results of this case are a testament to the resolve of DCIS, our law enforcement partners, and the U.S. Attorney’s Office to hold individuals that attempt to defraud the TRICARE program accountable.”
The defendants were charged in a June 2018 indictment and pleaded guilty to wire fraud, health care fraud, and/or kickback charges. All 13 defendants are scheduled to be sentenced in February 2022 and face a statutory maximum sentence of between five and 20 years. U.S. District Judge Sim Lake of the Southern District of Texas will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The USPS-OIG, DOL-OIG, and DCIS investigated the case with assistance from the U.S. Department of Veterans Affairs, Office of Inspector General.
Trial Attorneys Catherine Wagner, Patrick Queenan, and Jay McCormack of the Criminal Division’s Fraud Section are prosecuting the case. Trial Attorneys Scott Armstrong, Sarah Edwards, John Scanlon, and Michael McCarthy of the Fraud Section previously prosecuted the case.
Repeat Child Sex Offender Sentenced to 108 Months in Prison for Attempted Sex Abuse in VietnamRead the Press Release
A U.S. citizen residing outside the United States was sentenced today to 108 months in prison for attempting to molest an 11-year-old boy in Vietnam.
Joseph Ricky Park, 67, aka Joseph Demasi, pleaded guilty on Feb. 24 to attempting to engage in illicit sexual conduct with a child. According to court documents, around January 2015, while living in Vietnam, Park invited three Vietnamese boys to his apartment under the guise of offering English language instruction. At his apartment, while the boys played video games, Park placed his hand on a victim’s genitals and then proceeded to “pinch” and stroke the victim’s genitals through the victim’s clothing. Park then placed his hand inside the victim’s pants and attempted to continue stroking the victim’s genitals, but the victim pushed Park’s hand away.
Park was prosecuted in this case following a 2013 amendment to a federal criminal statute that prohibits U.S. citizens residing abroad from committing sex offenses against minors. Park, who resided outside the United States without returning from March 2003 until his arrest in this case in January 2016, challenged the constitutionality of this provision. In September 2019, in the first appellate opinion to consider the issue, the U.S. Court of Appeals for the District of Columbia Circuit upheld the application of this statute to the facts of this case.
According to court documents, Park has multiple prior convictions for offenses against minors. In 1987, he was convicted in Connecticut of two counts of injury or risk of injury to children, and one count of sexual assault in the second degree, for which he received concurrent sentences of ten years’ imprisonment, and served five years in prison, then was released, violated probation, and was re-imprisoned. In 2003, he was convicted of attempted corruption of a minor in Cuba and served more than two years in prison. According to court documents, the defendant repeatedly acknowledged having a sexual attraction to boys nearing or going through puberty.
Homeland Security Investigations investigated the case, with valuable assistance provided by agents in Vietnam, Thailand, the Philippines, Guam, and the FBI’s Washington Field Office.
Deputy Chief Alexandra R. Gelber and Trial Attorney Lauren S. Kupersmith of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case. Attorney Sonja Ralston of the Criminal Division’s Appellate Section handled the appeal.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Justice Department Settles with Construction Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice today announced that it has reached a settlement agreement with Priority Construction Corporation, located in Baltimore, Maryland. The settlement resolves the department’s claims that Priority Construction violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by failing to consider workers in the United States (such as U.S. citizens, U.S. nationals, asylees, refugees and recent lawful permanent residents) for employment opportunities due to the company’s preference for workers with H-2B visas.
“Employers should fully and fairly consider the qualifications of all applicants and not allow unlawful preferences based on citizenship or immigration status to affect the hiring process,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to eradicating discriminatory barriers and protecting workers from hiring discrimination.”
The department’s investigation determined that from at least Jan. 1, 2019 to March 11, 2019, Priority Construction discriminated against applicants in the United States by failing to fully and fairly consider them for temporary laborer positions, due to the company’s preference for H-2B visa workers. Specifically, Priority Construction claimed at the time it could not find sufficient qualified U.S. workers, when in fact it had not taken the time to fairly assess the local applicants who had applied to determine if they were qualified. The Department of Labor requires employers seeking permission to hire H-2B workers to first hire all qualified and available U.S. workers who apply by the relevant deadline. The department also concluded that the company attempted to discourage U.S. workers from applying by putting unnecessarily restrictive job requirements in a 2019 job announcement, such as three months of experience, when it would have accepted workers with one month of experience. The INA prohibits employers from refusing to consider, recruit or hire U.S. citizens and protected non-U.S. citizens – such as U.S. nationals, asylees, refugees, and recent lawful permanent residents – because of their citizenship or immigration status.
Under the settlement, Priority Construction will pay $40,600 in civil penalties to the United States, and conduct enhanced U.S. worker recruitment and advertising for future positions. The settlement also requires Priority Construction to be subject to departmental monitoring and reporting requirements and train employees on how to avoid discrimination under the INA.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. More information on how employers can avoid citizenship status discrimination is available here. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Department of Justice Antitrust Division and Federal Trade Commission to Hold Workshop on Promoting Competition in Labor MarketsRead the Press Release
The Department of Justice and Federal Trade Commission (FTC) will jointly host a virtual public workshop on Dec. 6 and 7, to discuss efforts to promote competitive labor markets and worker mobility. The workshop will bring together lawyers, economists, academics, policy experts, labor groups and workers, and will cover recent developments at the intersection of antitrust and labor, as well as implications for efforts to protect and empower workers through competition enforcement and rulemaking.
A series of panels, presentations and remarks will address competition issues affecting labor markets and the welfare of workers, including: labor monopsony; the increased use of restrictive contractual clauses in labor agreements, including non-competes and non-disclosure agreements; information sharing and benchmarking activity among competing employers; the role of other federal agencies in ensuring fair competition in labor markets; and the relationship between antitrust law and collective bargaining efforts in the “gig economy.” Panelists will be invited to discuss potential steps antitrust enforcers can take to better target enforcement resources, improve public guidance and pursue a whole-of-government approach to ensuring fair competition for workers and consumers by leveraging interagency resources.
The Department of Justice and FTC invite comments from the public on the topics covered by this workshop. Interested parties may submit public comments online now through Dec. 20, at https://www.regulations.gov/docket/FTC-2021-0057.
The workshop will be held virtually and webcast on the FTC’s website at FTC.gov. A recording of the workshop will be available on the Antitrust Division’s website and the FTC’s website. An agenda, list of speakers and instructions for accessing the webcast will be available in the near future at https://www.justice.gov/atr/events/public-workshop-promoting-competition-labor-markets.
Defendants Charged in Connection with Multi-State Forced Labor Conspiracy Involving the Forced Labor of Minor VictimsRead the Press Release
A federal grand jury in the District of Kansas has returned an eight-count indictment against eight defendants for their alleged roles in a forced labor conspiracy that victimized numerous minors who, between 2000 and 2012, worked in various food service and other businesses in Kansas and around the United States.
The indictment alleges that from 2000 through 2012, the defendants participated in running an organization called the United Nation of Islam (UNOI), an organization founded by the now deceased Royall Jenkins. The UNOI is alleged to have subjected multiple minors employed at UNOI-operated businesses in Kansas, New York, New Jersey, Georgia, Connecticut, Ohio and elsewhere, to forced labor.
The indictment charges the following individuals with conspiracy to commit forced labor and forced labor:
Kaaba Majeed
Age: 47
Jonesboro, GA
Yunus Rassoul
Age: 36
Cape Coral, FL
James Staton
Age: 59
Fayetteville, NC
Daniel Aubrey Jenkins
Age: 40
Lawrenceville, GA
Randolph Rodney Hadley
Age: 46
Fairburn, GA
Jacelyn Greenwell
Age: 42
Severn, MD
Etenia Kinard
Age: 46
Waldorf, MD
Dana Peach
Age: 57
Clinton, MD
The indictment alleges that over the course of more than a decade, the defendants coerced the victims into physically demanding labor at various UNOI-owned businesses around the United States. The defendants allegedly used coercive tactics, such as separating victims from their families; withholding food; abusing victims physically and verbally; subjecting victims to crowded living conditions; psychological manipulation; degrading treatment; isolating victims and limiting their ability to interact with anyone outside of UNOI; and suggesting to victims that those who left UNOI met tragic consequences. Although the victims were school-aged, it is alleged the defendants did not provide them with an adequate or legitimate education.
The defendants will be arraigned at a later date in Kansas City, Kansas.
Upon conviction, the alleged crimes carry the following penalties: forced labor with a penalty of up to 20 years in federal prison and a fine up to $250,000 and conspiracy to commit forced labor with a penalty of up to five years in federal prison and a fine up to $250,000.
This case was investigated by the FBI, with assistance from the U.S. Department of Labor - Office of the Inspector General and Wage and Hour Division. It will be prosecuted by Assistant U.S. Attorney Ryan Huschka for the District of Kansas and Trial Attorneys Vasantha Rao and Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
International Law Enforcement Operation Targeting Opioid Traffickers on the Darknet Results in 150 Arrests Worldwide and the Seizure of Weapons, Drugs, and over $31 MillionRead the Press Release
Today, the Department of Justice, through the Joint Criminal Opioid and Darknet Enforcement (JCODE) team joined Europol to announce the results of Operation Dark HunTor, a coordinated international effort on three continents to disrupt opioid trafficking on the Darknet. The operation, which was conducted across the United States, Australia, and Europe, was a result of the continued partnership between JCODE and foreign law enforcement against the illegal sale of drugs and other illicit goods and services. Operation Dark HunTor builds on the success of last year’s Operation DisrupTor and the coordinated law enforcement takedown earlier this year of DarkMarket, the world’s then-largest illegal marketplace on the Darknet. At the time, German authorities arrested the marketplace’s alleged operator and seized the site’s infrastructure, providing investigators across the world with a trove of evidence. Europol’s European Cybercrime Centre (EC3) and JCODE have since been compiling intelligence packages to identify key targets.
Following the DarkMarket takedown in January 2021, U.S. and international law enforcement agencies identified Darknet drug vendors and buyers, resulting in a series of complementary, but separate, law enforcement investigations. Operation Dark HunTor actions have resulted in the arrest of 150 alleged Darknet drug traffickers and other criminals who engaged in tens of thousands of sales of illicit goods and services across Australia, Bulgaria, France, Germany, Italy, the Netherlands, Switzerland, the United Kingdom, and the United States. Prior to, but in support of Operation Dark HunTor, Italian authorities also shut down the DeepSea and Berlusconi dark web marketplaces which boasted over 40,000 advertisements of illegal products. Four alleged administrators were arrested, and €3.6 million in cryptocurrencies were seized in coordinated U.S.-Italian operations.
Operation Dark HunTor resulted in the seizure of over $31.6 million in both cash and virtual currencies; approximately 234 kilograms (kg) of drugs worldwide including 152.1 kg of amphetamine, 21.6 kg of cocaine, 26.9 kg of opioids, 32.5 kg of MDMA, in addition to more than 200,000 ecstasy, fentanyl, oxycodone, hydrocodone, and methamphetamine pills, and counterfeit medicine ; and 45 firearms. Darknet vendor accounts were also identified and attributed to real individuals selling illicit goods on active marketplaces, as well as inactive Darknet marketplaces such as Dream, WallStreet, White House, DeepSea, and Dark Market.
Operation Dark HunTor led to 65 arrests in the United States, one in Bulgaria, three in France, 47 in Germany, four in the Netherlands, 24 in the United Kingdom, four in Italy, and two in Switzerland. A number of investigations are still ongoing.
“This 10-month massive international law enforcement operation spanned across three continents and involved dozens of U.S. and international law enforcement agencies to send one clear message to those hiding on the Darknet peddling illegal drugs: there is no dark internet. We can and we will shine a light,” said Deputy Attorney General Monaco. “Operation Dark HunTor prevented countless lives from being lost to this dangerous trade in illicit and counterfeit drugs, because one pill can kill. The Department of Justice with our international partners will continue to crack down on lethal counterfeit opioids purchased on the Darknet.”
“The men and women of the department’s Criminal Division, in close collaboration with our team of interagency and international partners, stand ready to leverage all our resources to protect our communities through the pursuit of those who profit from addiction, under the false belief that they are anonymous on the Darknet,” said Assistant Attorney General Kenneth A. Polite Jr of the Justice Department’s Criminal Division. “Only through a whole of government and, in this case, global approach to tackling cyber-enabled drug trafficking can we hope to achieve the significant results illustrated in Operation Dark HunTor.”
“The FBI continues to identify and bring to justice drug dealers who believe they can hide their illegal activity through the Darknet,” said FBI Director Christopher A. Wray. “Criminal darknet markets exist so drug dealers can profit at the expense of others’ safety. The FBI is committed to working with our JCODE and EUROPOL law enforcement partners to disrupt those markets and the borderless, worldwide trade in illicit drugs they enable.”
“Today, we face new and increasingly dangerous threats as drug traffickers expand into the digital world and use the Darknet to sell dangerous drugs like fentanyl and methamphetamine,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “These drug traffickers are flooding the United States with deadly, fake pills, driving the U.S. overdose crisis, spurring violence, and threatening the safety and health of American communities. DEA’s message today is clear: criminal drug networks operating on the Darknet, trying to hide from law enforcement, can no longer hide. DEA, the U.S. interagency, and our valued international partners, are committed to dismantling drug networks wherever they are, including on the Darknet.”
“Illicit darkweb marketplaces represent a significant threat to public health, economic, and national security,” said Acting Director Tae Johnson of U.S. Immigration and Customs Enforcement (ICE). “By working collaboratively and sharing intelligence across local, state, federal, and international law enforcement agencies, Homeland Security Investigations (HSI) and its partners are disrupting and dismantling transnational criminal organizations responsible for introducing dangerous narcotics and other contraband into our communities.”
“The dark web has become an underground facilitator of illegal commerce,” said Chief Postal Inspector Gary Barksdale of the U.S. Postal Inspection Service (USPIS). “Criminals use the dark web to sell and ship narcotics and other dangerous goods around the world, often relying on the postal system and private carriers to deliver these illegal products. The U.S. Postal Inspection Service is committed to finding and stopping these drug traffickers.”
“The Darknet no longer provides a concealing cloak for criminals to operate,” said IRS Criminal Investigation (IRS-CI) Chief Jim Lee. “The expertise of our agents and law enforcement partners helped uncover significant quantities of narcotics and money — both cash and virtual currency — derived from illicit means.”
“The point of operations such as the one today is to put criminals operating on the dark web on notice: the law enforcement community has the means and global partnerships to unmask them and hold them accountable for their illegal activities, even in areas of the dark web,” said Europol’s Deputy Executive Director of Operations Jean-Philippe Lecouffe.
The extensive operation, which lasted 10 months, resulted in dozens of federal operations and prosecutions, including:
- Four search warrants were executed in furtherance of a multiagency investigation resulting in the seizure of approximately $1 million in drug proceeds (including approximately $700,000 in cryptocurrency), eight firearms, one vehicle, and various controlled substances including MDMA, LSD, and cocaine. The FBI, DEA, Food and Drug Administration (FDA), and USPIS jointly conducted the investigation. According to court documents, the targets of the investigation were operating over multiple Darknet marketplaces to traffic methamphetamine, counterfeit pressed Adderall (containing methamphetamine), MDMA, cocaine, and ketamine to customers throughout the United States. The investigation revealed that the organization’s base of operations was in Houston, Texas, and the organization shipped to various cities throughout the United States. Six defendants are charged in a five-count indictment in the Southern District of Ohio with conspiracy to distribute controlled substances, distribution of controlled substances, sale of counterfeit drugs, and conspiracy to commit money laundering.
- The FBI in conjunction with the USPIS, FDA, and DEA, had been investigating a criminal enterprise that operated two Darknet vendor accounts. One of the accounts was operated out of the Miami area and the other out of the Providence, Rhode Island, area. According to court documents, the vendors, Luis Spencer, 31, of Fort Lauderdale, Florida; Olatunji Dawodu, 36, of Fort Lauderdale, Florida; and Alex Ogando, 35, of Providence, Rhode Island, allegedly advertised and sold pressed fentanyl pills throughout the United States. Agents identified several other co-conspirators and obtained search and arrest warrants for each. During the execution of the warrants, agents seized approximately $770,000, one weapon and approximately 3.5 kilograms of pressed fentanyl. Spencer, Dawodu, and Ogando are charged in the District of Columbia with conspiracy to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl.
- Kevin Olando Ombisi, 32, and Eric Bernard Russell Jr, 36, both of Katy, Texas, are alleged to have participated in Darknet controlled substances trafficking activities using the moniker Cardingmaster and are charged in a 10-count indictment in the Western District of Tennessee with conspiracy to distribute controlled substances, distribution of controlled substances, attempted unlawful distribution of controlled substances, sale of counterfeit drugs, money laundering conspiracy, and mail fraud. According to court documents, Ombisi and Russell are alleged to have used the moniker Cardingmaster and conspired and attempted to, and did unlawfully distribute the Schedule II controlled substance methamphetamine, which was falsely represented to be Adderall, through the mail in the Western District of Tennessee and elsewhere. In conjunction with their arrests, the government seized more than $5 million in assets alleged to be connected to the drug trafficking activity. The case was investigated by the DEA, HSI, USPIS, and the FDA, and is being prosecuted by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Western District of Tennessee.
An indictment and criminal complaint are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Operation Dark HunTor was a collaborative initiative across JCODE members, including the Department of Justice; FBI; DEA; USPIS; ICE’s Homeland Security Investigations (HSI); IRS-Criminal Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Naval Criminal Investigative Service (NCIS) and the FDA’s Office of Investigations. This operation was aided by non-operational supporting participation from the Financial Crimes Enforcement Network (FinCEN) and U.S. Customs and Border Protection (CBP). Local, state, and other federal agencies also contributed to Operation Dark HunTor investigations through task force participation and regional partnerships. The investigations leading to Operation Dark HunTor were significantly aided by support and coordination by the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF), multi-agency Special Operations Division, the Criminal Division’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section’s Digital Currency Initiative, Narcotic and Dangerous Drug Section, the Fraud Section, the Justice Department’s Office of International Affairs, the National Cyber Joint Investigative Task Force (NCJITF), Europol and its Dark Web team and international partners Eurojust, Australian Federal Police (AFP), Bulgaria’s General Directorate Combating Organized Crime (Главна дирекция Борба с организираната престъпност), France’s National Police (Police National - OCLCTIC) and National Gendarmerie (Gendarmerie Nationale – C3N), Germany’s Federal Criminal Police Office (Bundeskriminalamt), Central Criminal Investigation Department in the German city of Oldenburg (Zentrale KriminaIinspektion Oldenburg), State Criminal Police Offices (Landeskriminalämter), State Criminal Police Office of Lower Saxony (LKA Niedersachsen), various police departments (Dienststellen der Länderpolizeien), German Investigation Customs ( Zollfahndungsämter), Italy’s Finance Corps (Guardia di Finanza) and Public Prosecutor’s Office Brescia, the Netherland’s National Police (Politie), Switzerland’s Zurich Canton Police (Kantonspolizei Zürich) and Public Prosecutor's Office II of the Canton of Zurich (Staatsanwaltschaft II), and the United Kingdom’s National Crime Agency (NCA) and NPCC.
Federal prosecutions are being conducted in more than 15 federal districts, including the Central District of California, the Eastern District of California, the Northern District of California, the District of Columbia, the Southern District of Florida, the District of Massachusetts, the District of Nebraska, the District of Nevada, the Western District of New York, the Southern District of Ohio, the Northern District of Texas, the Eastern District of Virginia, the Western District of Virginia, the District of Rhode Island, the Western District of Tennessee, and the Western District of Washington.
JCODE is an FBI-led Department of Justice initiative, which supports, coordinates, and assists in de-confliction of investigations targeting for disruption and dismantlement of the online sale of illegal drugs, especially fentanyl and other opioids. JCODE also targets the trafficking of weapons and other illicit goods and services on the internet.
View documents and resources related to this announcement.
Former Bureau of Prisons Corrections Officer Sentenced for Sexually Abusing an Inmate and Witness TamperingRead the Press Release
Eric Todd Ellis, 32, a former Bureau of Prisons (BOP) corrections officer at the FCI-Aliceville facility in Aliceville, Alabama, was sentenced today in federal court in Birmingham, Alabama, to 18 months in prison and five years of supervised release. Ellis previously pleaded guilty to one count of sexual abuse of a ward and one count of tampering with a witness.
According to court documents, on or about June 11, 2020, Ellis knowingly engaged in a sexual act with a female inmate while in the back of the laundry room of the prison. At the time, Ellis was on-duty and acting in his capacity as a corrections officer. The female inmate was in official detention and under Ellis’s custodial authority. Ellis then admitted his conduct to another corrections officer. While the OIG was investigating Ellis’s conduct, Ellis told that corrections officer to lie to OIG. On a recorded call, Ellis said: “Just tell [the OIG agents], yeah, we’re friends, but, I mean, you hadn’t really talked to me about it. And when you have it’s – I’ve just told you that nothing happened.”
“Prison employees who abuse their positions of power to sexually assault individuals in their custody, and then attempt to cover up their crimes, will be held accountable,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division.” The Civil Rights Division will continue to secure justice for sexual assault victims, including those held in the custody and control of law enforcement officials.”
“The sexual abuse of prison inmates by federal corrections officers is intolerable,” said U.S. Attorney Prim F. Escalona of the Northern District of Alabama. “My office will vigorously investigate and prosecute any such officers who violate their oath of office. As today’s sentence makes plain, officers who abuse inmates face significant prison time for their offense.”
“Ellis sexually abused an inmate and then tried to cover it up,” said Special Agent in Charge James F. Boyersmith of the Justice Department’s Office of the Inspector General (OIG) Miami Field Office. “Today’s sentencing sends a clear message that prison staff who abuse their power and assault inmates in their custody will be brought to justice.”
This case was investigated by the Miami Division of the OIG. Executive Assistant U.S. Attorney Robert Posey and Assistant U.S. Attorney Robin Mark of the Northern District of Alabama and Special Litigation Counsel Fara Gold and Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section prosecuted the case.
Chief Executive Officer Pleads Guilty to Submitting Hundreds of False Monitoring ReportsRead the Press Release
A Tennessee woman pleaded guilty today to fabricating discharge monitoring reports required under the Clean Water Act and submitting those fraudulent documents to state regulators in Tennessee and Mississippi.
According to court documents and information in the public record, DiAne Gordon, 61, of Memphis, was the co-owner and chief executive officer of Environmental Compliance and Testing (ECT). ECT held itself out to the public as a full-service environmental consulting firm and offered, among other things, sampling and testing of stormwater, process water and wastewater.
Customers, typically concrete companies, hired ECT to take samples and analyze them in a manner consistent with Clean Water Act permit requirements. Gordon claimed to gather and send the samples to a full-service environmental testing laboratory. The alleged results were memorialized in lab reports and chain of custody forms submitted to two state agencies, Mississippi Department of Environmental Quality (MDEQ) and the Tennessee Department of Environment and Conservation (TDEC), to satisfy permit requirements. In reality, Gordon fabricated the test results and related reports. She even forged documents from a reputable testing laboratory in furtherance of her crime. Gordon then billed her clients for the sampling and analysis. Law enforcement and regulators quickly determined that Gordon created and submitted, or caused to be submitted, at least 405 false lab reports and chain of custody forms from her company in Memphis to state regulators since 2017.
Pursuant to the terms of her plea agreement, Gordon will pay $201,388.88 in restitution to the victims of her crime.
“By fabricating these reports, Gordon betrayed her position of trust and violated her responsibility to provide information critical to evaluating water quality for residents in Tennessee and Mississippi,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This prosecution shows the value of state and federal partnerships in investigating and prosecuting fraud and upholding the nation’s environmental laws for the good of public health.”
“The Clean Water Act ensures that water quality is maintained throughout the United States,” said Acting U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee. “Correct and accurate test results of discharges into rivers and stream and the honest reporting of those results to regulatory authorities are important parts of the Act’s regulatory framework. Without accurate test results and reporting of those results, the Clean Water Act will not work as Congress intended. Because honest reporting of this data is so important to the functioning of the Act, our office will vigorously prosecute individuals who falsely report test results.”
“The defendant’s job was to help her clients remain in compliance with the Clean Water Act but instead she chose to falsify the required analytical testing under the Act for financial gain,” said Special Agent in Charge Charles Carfagno of the Environmental Protection Agency – Criminal Investigation Division’s (EPA-CID) Southeast Area Branch. “Today’s guilty plea illustrates the consequences of such criminal behavior and that EPA-CID will continue to vigorously investigate those that choose to violate our environmental laws.”
Gordon pleaded guilty to knowingly and willfully making and using false writings and documents in a matter within the jurisdiction of EPA. She is scheduled to be sentenced on March 22, 2022, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
EPA-CID is investigating the case. MDEQ and TDEC provided invaluable assistance to federal law enforcement officers.
Trial Attorney Banumathi Rangarajan of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Dean DeCandia of the U.S. Attorney’s Office for the Western District of Tennessee are prosecuting the case.
Navistar Inc. to Reduce 10,000 Tons of NOx Emissions and Pay $52 Million Civil Penalty in Federal Settlement of Clean Air Act ClaimsRead the Press Release
Navistar Inc., an integrated manufacturer of trucks and diesel engines based in Lisle, Illinois, has agreed to mitigate at least 10,000 tons of oxides of nitrogen (NOx) emissions and pay a $52 million civil penalty in a consent decree, lodged today, to resolve violations of the Clean Air Act. In particular, Navistar illegally introduced into commerce on‑highway Heavy-Duty Diesel Engines (HDDEs) that were not covered by EPA-issued certificates of conformity.
In 2015, the United States filed suit against Navistar alleging that in 2010, after lower emission standards went into effect, the company introduced into commerce 7,749 HDDEs that were not certified and did not meet the lower emission standards. Navistar had marketed and sold the engines installed in its international-branded trucks as being EPA-certified model year 2009 engines even though it completed all manufacturing and assembling processes for the engines in 2010. The court held that the engines were in fact model year 2010 engines and required to be covered by a 2010 certificate of conformity demonstrating compliance with the lower emission requirements.
“This settlement shows we will hold companies accountable when they skirt the law to gain advantage at the expense of public health,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The department’s steadfast pursuit of this case achieved a just result, including that the company must mitigate the harm it caused and, in doing so, specifically must consider assisting communities overburdened by pollution.”
“Older diesel engines without modern emissions controls emit significant amounts of air pollution that harms people’s health and takes years off people’s lives,” said Acting Assistant Administrator Larry Starfield for the EPA’s Office of Enforcement and Compliance Assurance. “This harm is greatest in communities near busy roadways, which are too often overburdened by high levels of ozone and particulate matter pollution. Today’s settlement will protect these vulnerable communities by preventing the emission of 10,000 tons of NOx from older, heavily-polluting commercial vehicles and equipment.”
Under the settlement, Navistar will pay a civil penalty of $52 million, forfeit its current account of NOx credits, and purchase and destroy enough older diesel engines to prevent 10,000 tons of future NOx emissions, a powerful air pollutant known to cause significant adverse health effects. The settlement requires Navistar to structure its mitigation of NOx emissions through one or more programs approved by EPA that will take into consideration geographic diversity and benefits to communities that are overburdened by air pollution. Navistar will report back to the EPA on its implementation of the program to ensure compliance with the environmental justice and geographic distribution requirements in the consent decree.
This settlement comes after more than six years of diligent prosecution by the United States. The United States prevailed in the first phase of litigation when the U.S. District Court for the Northern District of Illinois held that Navistar was liable for the alleged violations. In the second phase, and facing an imminent trial on the remedies, the parties reached the negotiated resolution that is captured by the consent decree
More information about this settlement can be found here.
The consent decree for this settlement was lodged in the U.S. District Court for the Northern District of Illinois and is subject to a 30-day public comment period and final court approval. https://www.justice.gov/enrd/consent-decrees.
Justice Department Obtains Consent Decree in Sexual Harassment Lawsuit Against Owners of Minneapolis Area Rental PropertiesRead the Press Release
The Justice Department today announced that it has obtained a consent decree with Reese Pfeiffer and several other defendants to resolve allegations that Pfeiffer violated the Fair Housing Act (FHA) by subjecting 23 women to severe and repeated sexual harassment and retaliation at residential properties defendants own or manage in and around Minneapolis.
Under the consent decree, the defendants must pay a total of $736,000 in compensation to 23 victims of the alleged sexual harassment and retaliation, and a $14,000 civil penalty to the United States. Additionally, the consent decree permanently bars Reese Pfeiffer from property management and requires the retention of an independent property manager approved by the Department of Justice at specified Twin Cities properties. The defendants must also undergo education and training on the FHA, with specific emphasis on discrimination on the basis of sex and sexual harassment.
The defendants are property managers/owners Reese Pfeiffer, Jeanne Pfeiffer, Michael Fruen and Jeremy Martineau and business entities Fruen & Pfeiffer LLP (F&P) and M. Fruen Properties (MFP).
The consent decree, entered today by the U.S. District Court for the District of Minnesota, resolves a lawsuit that the department filed in Sept. 2020, as well as a related private lawsuit brought by Mid-Minnesota Legal Aid on behalf of three women who were subjected to Pfeiffer’s alleged sexual harassment.
“All people deserve to feel safe in their homes,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Sexual harassment in housing deprives individuals of that security. The Justice Department will not tolerate landlords who abuse their power by sexually harassing their tenants and will continue to work resolutely to hold such persons accountable and obtain relief for their victims.”
“The sexual harassment and discrimination of female tenants is unacceptable and a violation of federal law,” said Acting U.S. Attorney W. Anders Folk for the District of Minnesota. “This resolution helps restore the public safety of these female tenants. No one should be subjected to an environment of harassment, discrimination, and retaliation, especially in their own homes.”
The United States’ lawsuit alleged that Reese Pfeiffer, property manager for numerous rental properties in Minneapolis and surrounding suburbs, subjected multiple female tenants and prospective tenants to sexual harassment. The complaint alleged that Reese Pfeiffer commented on female tenants’ looks and body parts, engaged in unwelcome touching, asked personal questions about their relationship status, made unwelcome sexual advances, discussed sexual topics without consent, entered their homes under the pretense of collecting rent to solicit sexual favors, and offered them rental benefits, such as excusing late or unpaid rent, in exchange for sexual favors. The complaint further alleged that Reese Pfeiffer’s co-defendants are vicariously liable for Pfeiffer’s discriminatory conduct because he acted as their agent when he sexually harassed tenants at properties in which they had an ownership interest.
This case is handled by the Civil Division of the U.S. Attorney’s Office for the District of Minnesota with the assistance of the Justice Department’s Civil Rights Division and the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the Department of Justice has filed 23 lawsuits alleging sexual harassment in housing and recovered over $4.8 million for victims of such harassment.
If you think you are a victim of sexual harassment by a landlord, or other forms of housing discrimination, you may contact the Justice Department by submitting a report online or contact the U.S. Attorney’s Office for the District of Minnesota at (612) 664-5600.
Reports also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
Chief Financial Officer for Oklahoma Business Found Guilty of Employment Tax FraudRead the Press Release
A federal jury convicted a North Carolina woman on Oct. 22 of employment tax fraud.
According to court documents and evidence presented at trial, Christina Rochelle Anglin, aka Christy Anglin, of Burnsville, was the Controller and Chief Financial Officer for Atmospheric Technology Services Company (ATSC) located in Norman, Oklahoma. In that role, Anglin was responsible for withholding from employee wages and paying to the IRS payroll taxes, which included Social Security and Medicare taxes and federal income taxes. From the first quarter through the third quarter of 2018, Anglin did not pay to the IRS nearly $920,000 in payroll taxes, which had been withheld from employees. At the same time these taxes were not paid, Anglin approved thousands of dollars of business expenditures, including salary and bonuses for herself and other executives.
Anglin faces a maximum penalty of five years in prison for each count of employment tax fraud plus payment of restitution to the IRS. 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 Acting U.S. Attorney Robert J. Troester for the Western District of Oklahoma made the announcement.
This case was investigated by IRS-Criminal Investigation (IRS-CI), Defense Criminal Investigative Service (DCIS), U.S. General Services Administration-Office of Inspector General (GSA-OIG), FBI, Naval Criminal Investigative Service (NCIS), Army Criminal Investigations Division (ARMY-CID), and the Small Business Administration-Office of Inspector General (SBA-OIG).
Assistant U.S. Attorney William Farrior of the U.S. Attorney’s Office for the Western District of Oklahoma and Trial Attorney Ahmed Almudallal of the Tax Division are prosecuting the case.
Justice Department Announces New Initiative to Combat RedliningRead the Press Release
The Justice Department announced the launch of the department’s new Combatting Redlining Initiative today. Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Lending discrimination runs counter to fundamental promises of our economic system,” said Attorney General Merrick B. Garland. “When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated. Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”
“Enforcement of our fair lending laws is critical to ensure that banks and lenders are providing communities of color equal access to lending opportunities,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Equal and fair access to mortgage lending opportunities is the cornerstone on which families and communities can build wealth in our country. We know well that redlining is not a problem from a bygone era but a practice that remains pervasive in the lending industry today. Our new Initiative should send a strong message to banks and lenders that we will hold them accountable as we work to combat discriminatory race and national origin-based lending practices.”
Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.
This Initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. The Initiative will:
- Utilize U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.
- Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services, but engage in mortgage lending and now make the majority of mortgages in this country.
- Strengthen our partnership with financial regulatory agencies to ensure the identification and referrals of fair lending violations to the Department of Justice.
- Increase coordination with State Attorneys General on potential fair lending violations.
Trustmark National Bank Settlement
In addition to today’s Initiative announcement, the Justice Department, the U.S. Attorney’s Office for the Western District of Tennessee, the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) announced an agreement to resolve allegations that Trustmark National Bank engaged in lending discrimination by redlining predominantly Black and Hispanic neighborhoods in Memphis, Tennessee.
The parties’ proposed consent order was filed today in conjunction with a complaint in the U.S. District Court for the Western District of Tennessee. The complaint alleges that Trustmark National Bank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, color or national origin in their mortgage lending services. The complaint also alleges that Trustmark National Bank violated the Consumer Financial Protection Act, which prohibits offering or providing to a consumer any financial product or service not in conformity with federal consumer financial law.
Specifically, the complaint alleges that, from 2014 to 2018, Trustmark engaged in unlawful redlining in Memphis by avoiding predominantly Black and Hispanic neighborhoods because of the race, color, and national origin of the people living in, or seeking credit for properties in, those neighborhoods. The complaint also alleges that Trustmark’s branches were concentrated in majority-white neighborhoods, that the bank’s loan officers did not serve the credit needs of majority-Black and Hispanic neighborhoods, that Trustmark’s outreach and marketing avoided those neighborhoods, and that Trustmark’s internal fair-lending policies and procedures were inadequate to ensure that the bank provided equal access to credit to communities of color.
The department opened its investigation after one of Trustmark’s regulators, the OCC, referred the matter. Trustmark has fully cooperated in this investigation and amicably resolved the allegations.
“Trustmark purposely excluded and discriminated against Black and Hispanic communities,” said Director Rohit Chopra of the Consumer Financial Protection Bureau (CFPB). “The federal government will be working to rid the market of racist business practices, including those by discriminatory algorithms.”
“Home ownership is the foundation of economic success for most American families,” said Acting U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee. “Fair lending practices required by federal law — and the enforcement of those laws — ensure a better future for all Americans. Our office believes that enforcement actions of this type are essential to fair lending system that benefits everyone, and we will continue to prioritize these cases.”
“The OCC has had a long history of strong partnership with the Justice Department’s Housing and Civil Enforcement Section of the Civil Rights Division, referring potential fair lending violations and sharing our extensive examiner, economist and legal findings, as we did in the Trustmark matter,” said Acting Comptroller of the Currency Michael J. Hsu. “Today’s announcement is important because it signifies the unified and unmitigated focus that each of our agencies has placed on the enforcement of the Fair Housing Act and the Equal Credit Opportunity Act. Our collective efforts are critical to addressing the discriminatory lending practices that create and reinforce racial inequity in the financial system.”
Under the proposed consent order:
- Trustmark will invest $3.85 million in a loan subsidy fund to increase credit opportunities for current and future residents of predominantly Black and Hispanic neighborhoods in the Memphis area; dedicate at least four mortgage loan officers or community lending specialists to these neighborhoods; and open a loan production office in a majority-Black and Hispanic neighborhood in Memphis.
- Trustmark will devote $400,000 to developing community partnerships to provide services to residents of majority-Black and Hispanic neighborhoods in Memphis that increase access to residential mortgage credit.
- Trustmark will devote at least $200,000 per year to advertising, outreach, consumer financial education and credit repair initiatives in and around Memphis.
- Trustmark will pay a total civil money penalty of $5 million to the OCC and CFPB.
- Trustmark already has established a Fair Lending Oversight Committee and designated a Community Lending Manager who will oversee these efforts and work in close consultation with the bank’s leadership.
In August 2021, the department announced a redlining settlement with Cadence Bank. Under the settlement, Cadence will invest over $5.5 million to increase credit opportunities for residents of majority-Black and Hispanic neighborhoods in Houston.
Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
El Departamento de Justicia anuncia una nueva iniciativa para combatir la exclusión financieraRead the Press Release
El Departamento de Justicia anunció hoy el lanzamiento de la nueva iniciativa del Departamento para combatir la exclusión financiera (“redlining” en inglés). La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios a individuos que viven en comunidades de color por motivos de la raza o el origen nacional de las personas que viven en esas comunidades. La nueva Iniciativa representa el esfuerzo de aplicación de la ley más agresivo y coordinado del Departamento que aborde el tema de la exclusión financiera, cosa que, en virtud de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito, está prohibida.
«La discriminación en el ámbito crediticio va en contra de promesas fundamentales de nuestro sistema económico», declaró el Fiscal General Merrick B. Garland. «Cuando se les niega a las personas un préstamo simplemente por motivos de su raza u origen nacional, su capacidad de participar en la prosperidad de nuestra nación prácticamente se elimina. Hoy, nos estamos comprometiendo a abordar la exclusión financiera moderna al hacer un uso mucho más robusto de nuestras autoridades de préstamos justos. No escatimaremos ningún recurso en nuestra lucha por garantizar que las leyes de préstamos justos se hagan cumplir con firmeza y que las instituciones financieras proporcionen a cada estadounidense la igualdad de oportunidades de obtener un préstamo».
«Si queremos asegurar que los bancos y prestamistas brinden la igualdad de acceso a oportunidades crediticias a comunidades de color, es esencial hacer cumplir nuestras leyes de préstamos justos», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El acceso igualitario y justo a oportunidades de crédito hipotecario es la piedra angular en la cual las familias y comunidades pueden crear riqueza en nuestro país. Todos sabemos muy bien que la exclusión financiera no constituye un problema de otra época sino una práctica que sigue siendo dominante en la industria crediticia de hoy. Nuestra nueva Iniciativa debe trasmitir un mensaje claro a los bancos y prestamistas que nosotros les haremos rendir cuentas de sus acciones a medida que trabajemos por combatir prácticas crediticias que discriminan con base en la raza u origen nacional de uno».
La exclusión financiera, una práctica institucionalizada por el Gobierno federal durante la época del New Deal e implementada en aquel entonces y hoy día por prestamistas privados, ha tenido un impacto negativo duradero. Para las familias estadounidenses, el ser propietario de una vivienda sigue siendo la forma principal de crear riqueza, y la privación de inversión en y acceso a servicios de crédito hipotecario en las comunidades de color ha contribuido a tasas continuamente más bajas entre las comunidades de color de propietarios de viviendas y patrimonio neto, en comparación con familias blancas. La brecha en las tasas de propietarios entre las familias blancas y las negras es más ancha hoy que en 1960, antes de la aprobación de la ley de Vivienda Justa de 1968.
Esta Iniciativa, que será dirigida por la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles, en asociación con las Fiscalías Federales, empleará como base el trabajo de muchos años de la División cuya meta es convertir a los préstamos hipotecarios y la posibilidad de ser propietario en algo al que todo estadounidense pueda acceder bajo los mismos términos, independientemente de su raza u origen nacional e independientemente del barrio en el que vive. La Iniciativa:
- Utilizará las Fiscalías Federales como fuerzas multiplicadoras para garantizar que la aplicación de las leyes de préstamos justos sea informada por pericia local en los mercados inmobiliarios y las necesidades crediticias de comunidades locales de color.
- Expandirá los análisis del Departamento de posibles casos de exclusión financiera a tanto las instituciones depositarias como a las no depositarias. Los prestamistas no depositarios no son bancos tradicionales y no prestan servicios bancarios típicos pero conceden préstamos hipotecarios y actualmente son los responsables de la mayoría de las hipotecas en este país.
- Fortalecerá nuestra asociación con agencias reguladoras financieras con el fin de garantizar la identificación de infracciones de las leyes de préstamos justos y la referencia de las mismas al Departamento de Justicia.
- Aumentará la coordinación con Fiscales Generales Estatales en lo que se refiere a posibles infracciones de las leyes de préstamos justos.
El acuerdo con Trustmark National Bank
Además del anuncio de hoy del lanzamiento de la Iniciativa, el Departamento de Justicia, la Fiscalía Federal para el Distrito Oeste de Tennessee, la Oficina para la Protección Financiera del Consumidor (CFPB, por sus siglas en inglés) y la Oficina del Contralor de la Moneda (OCC, por sus siglas en inglés) anunciaron un acuerdo para resolver alegatos de que Trustmark National Bank había discriminado en el ámbito crediticio al practicar la exclusión financiera contra barrios en Memphis, Tennessee cuyos residentes son principalmente negros e hispanos.
La orden de consentimiento propuesta de las partes se presentó hoy en combinación con una demanda ante el Tribunal Federal de Distrito para el Distrito Oeste de Tennessee. La demanda alega que Trustmark National Bank vulneró la ley de Vivienda Justa y la Ley de Igualdad de Oportunidades Crediticias, las cuales prohíbe que las instituciones financieras discriminen por motivos de raza, color de piel u origen nacional en la provisión de sus servicios de crédito hipotecario. Más aún, la demanda alega que Trustmark National Bank vulneró la ley de Protección Financiera del Consumidor, que prohíbe la oferta o provisión a un consumidor de productos o servicios financieros de una manera que no esté en conformidad con las leyes federales financieras destinadas a los consumidores.
En concreto, la demanda alega que, entre el 2014 y el 2018, Trustmark practicó exclusión financiera ilícita en Memphis al evitar barrios cuyos residentes son principalmente negros e hispanos, por motivos de la raza, el color de piel y el origen nacional de las personas que vivían en esos barrios o que pedían un préstamo para propiedades ubicadas en los mismos. Por otra parte, la demanda alega que las sucursales de Trustmark estaban concentradas en barrios de mayoría blanca, que los oficiales de crédito del banco no satisfacían las necesidades crediticias de barrios de mayoría negra o hispana, que los esfuerzos de extensión comunitaria y mercadeo de Trustmark esquivaban esos barrios y que los procedimientos y políticas internos de Trustmark de préstamos justos no eran suficientes como para garantizar que el banco brindara la igualdad de acceso al crédito a las comunidades de color.
El Departamento inició su investigación después de que uno de los reguladores de Trustmark, la OCC, refirió el asunto. Trustmark ha cooperado plenamente en esta investigación y resolvió los alegatos de forma amigable.
«Trustmark excluyó y discriminó, de manera intencional, a comunidades negras e hispanas», declaró Rohit Chopra, el director de la Oficina para la Protección Financiera del Consumidor. «El Gobierno federal luchará por eliminar prácticas empresariales racistas en el mercado, incluyendo aquellas provenientes de algoritmos discriminatorios».
«Para muchas familias estadounidenses, el ser propietario de una vivienda es el fundamento del éxito económico», comentó el Fiscal Federal Interino para el Distrito Oeste de Tennessee, Joseph C. Murphy Jr. «Las prácticas de préstamos justos que se requieren en virtud de las leyes federales, así como la aplicación de dichas leyes, garantizan un mejor futuro para todo estadounidense. Nuestra oficina cree que medidas de aplicación de la ley de esta naturaleza son primordiales para un sistema de préstamos justos que beneficia a todos y seguiremos dando prioridad a estos casos».
«Desde hace mucho tiempo, la OCC ha tenido una sólida asociación con la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles del Departamento de Justicia: ha referido posibles infracciones de las leyes de préstamos justos y hemos compartido nuestros hallazgos extensos de los equipos examinadores, economistas y legales, tal y como hemos hecho en el caso de Trustmark», indicó el Contralor Interino de la Moneda, Michael J. Hsu. «El anuncio de hoy es importante porque representa el enfoque unificado y absoluto que cada una de nuestras agencias ha dedicado a la aplicación de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito. Nuestros esfuerzos colectivos son esenciales al abordaje de las prácticas crediticias discriminatorias que crean y refuerzan la inequidad racial en el sistema financiero».
Conforme la orden de consentimiento propuesto:
- Trustmark invertirá $3.85 millones en un fondo de préstamos subsidiados para incrementar las oportunidades crediticias para residentes actuales y futuros de barrios cuyos residentes son principalmente negros e hispanos en la zona de Memphis; dedicará al menos cuatro oficiales de crédito hipotecario o especialistas en préstamos comunitarios a estos barrios y abrirá una oficina de producción crediticia en un barrio de Memphis cuyos residentes son principalmente negros o hispanos.
- Trustmark dedicará $400,000 al desarrollo de asociaciones comunitarias para la prestación de servicios a residentes de barrios de Memphis que son principalmente negros e hispanos que mejorarán el acceso al crédito hipotecario residencial.
- Por otra parte, Trustmark dedicará al menos $200,000 por año a iniciativas de publicidad, proyección comunitaria, educación financiera del consumidor y reparación del crédito en Memphis y sus alrededores.
- Trustmark pagará a la OCC y la CFPB una sanción civil monetaria que asciende, en su totalidad, a $5 millones.
- Trustmark ya ha establecido un Comité de Supervisión de las Leyes de Préstamos Justos y ha designado un Gestor de Crédito Comunitario que supervisará estos esfuerzos y trabajará estrechamente con el liderazgo del banco.
En agosto del 2021, el Departamento anunció un acuerdo con Cadence Bank por motivos de exclusión financiera. Conforme al acuerdo, Cadence invertirá más de $5.5 millones para mejorar las oportunidades crediticias de residentes de barrios de Houston que son principalmente negros e hispanos.
Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea.
El Departamento de Justicia anuncia una nueva iniciativa para combatir la exclusión financieraRead the Press Release
El Departamento de Justicia anunció hoy el lanzamiento de la nueva iniciativa del Departamento para combatir la exclusión financiera (“redlining” en inglés). La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios a individuos que viven en comunidades de color por motivos de la raza o el origen nacional de las personas que viven en esas comunidades. La nueva Iniciativa representa el esfuerzo de aplicación de la ley más agresivo y coordinado del Departamento que aborde el tema de la exclusión financiera, cosa que, en virtud de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito, está prohibida.
«La discriminación en el ámbito crediticio va en contra de promesas fundamentales de nuestro sistema económico», declaró el Fiscal General Merrick B. Garland. «Cuando se les niega a las personas un préstamo simplemente por motivos de su raza u origen nacional, su capacidad de participar en la prosperidad de nuestra nación prácticamente se elimina. Hoy, nos estamos comprometiendo a abordar la exclusión financiera moderna al hacer un uso mucho más robusto de nuestras autoridades de préstamos justos. No escatimaremos ningún recurso en nuestra lucha por garantizar que las leyes de préstamos justos se hagan cumplir con firmeza y que las instituciones financieras proporcionen a cada estadounidense la igualdad de oportunidades de obtener un préstamo».
«Si queremos asegurar que los bancos y prestamistas brinden la igualdad de acceso a oportunidades crediticias a comunidades de color, es esencial hacer cumplir nuestras leyes de préstamos justos», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El acceso igualitario y justo a oportunidades de crédito hipotecario es la piedra angular en la cual las familias y comunidades pueden crear riqueza en nuestro país. Todos sabemos muy bien que la exclusión financiera no constituye un problema de otra época sino una práctica que sigue siendo dominante en la industria crediticia de hoy. Nuestra nueva Iniciativa debe trasmitir un mensaje claro a los bancos y prestamistas que nosotros les haremos rendir cuentas de sus acciones a medida que trabajemos por combatir prácticas crediticias que discriminan con base en la raza u origen nacional de uno».
La exclusión financiera, una práctica institucionalizada por el Gobierno federal durante la época del New Deal e implementada en aquel entonces y hoy día por prestamistas privados, ha tenido un impacto negativo duradero. Para las familias estadounidenses, el ser propietario de una vivienda sigue siendo la forma principal de crear riqueza, y la privación de inversión en y acceso a servicios de crédito hipotecario en las comunidades de color ha contribuido a tasas continuamente más bajas entre las comunidades de color de propietarios de viviendas y patrimonio neto, en comparación con familias blancas. La brecha en las tasas de propietarios entre las familias blancas y las negras es más ancha hoy que en 1960, antes de la aprobación de la ley de Vivienda Justa de 1968.
Esta Iniciativa, que será dirigida por la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles, en asociación con las Fiscalías Federales, empleará como base el trabajo de muchos años de la División cuya meta es convertir a los préstamos hipotecarios y la posibilidad de ser propietario en algo al que todo estadounidense pueda acceder bajo los mismos términos, independientemente de su raza u origen nacional e independientemente del barrio en el que vive. La Iniciativa:
- Utilizará las Fiscalías Federales como fuerzas multiplicadoras para garantizar que la aplicación de las leyes de préstamos justos sea informada por pericia local en los mercados inmobiliarios y las necesidades crediticias de comunidades locales de color.
- Expandirá los análisis del Departamento de posibles casos de exclusión financiera a tanto las instituciones depositarias como a las no depositarias. Los prestamistas no depositarios no son bancos tradicionales y no prestan servicios bancarios típicos pero conceden préstamos hipotecarios y actualmente son los responsables de la mayoría de las hipotecas en este país.
- Fortalecerá nuestra asociación con agencias reguladoras financieras con el fin de garantizar la identificación de infracciones de las leyes de préstamos justos y la referencia de las mismas al Departamento de Justicia.
- Aumentará la coordinación con Fiscales Generales Estatales en lo que se refiere a posibles infracciones de las leyes de préstamos justos.
El acuerdo con Trustmark National Bank
Además del anuncio de hoy del lanzamiento de la Iniciativa, el Departamento de Justicia, la Fiscalía Federal para el Distrito Oeste de Tennessee, la Oficina para la Protección Financiera del Consumidor (CFPB, por sus siglas en inglés) y la Oficina del Contralor de la Moneda (OCC, por sus siglas en inglés) anunciaron un acuerdo para resolver alegatos de que Trustmark National Bank había discriminado en el ámbito crediticio al practicar la exclusión financiera contra barrios en Memphis, Tennessee cuyos residentes son principalmente negros e hispanos.
La orden de consentimiento propuesta de las partes se presentó hoy en combinación con una demanda ante el Tribunal Federal de Distrito para el Distrito Oeste de Tennessee. La demanda alega que Trustmark National Bank vulneró la ley de Vivienda Justa y la Ley de Igualdad de Oportunidades Crediticias, las cuales prohíbe que las instituciones financieras discriminen por motivos de raza, color de piel u origen nacional en la provisión de sus servicios de crédito hipotecario. Más aún, la demanda alega que Trustmark National Bank vulneró la ley de Protección Financiera del Consumidor, que prohíbe la oferta o provisión a un consumidor de productos o servicios financieros de una manera que no esté en conformidad con las leyes federales financieras destinadas a los consumidores.
En concreto, la demanda alega que, entre el 2014 y el 2018, Trustmark practicó exclusión financiera ilícita en Memphis al evitar barrios cuyos residentes son principalmente negros e hispanos, por motivos de la raza, el color de piel y el origen nacional de las personas que vivían en esos barrios o que pedían un préstamo para propiedades ubicadas en los mismos. Por otra parte, la demanda alega que las sucursales de Trustmark estaban concentradas en barrios de mayoría blanca, que los oficiales de crédito del banco no satisfacían las necesidades crediticias de barrios de mayoría negra o hispana, que los esfuerzos de extensión comunitaria y mercadeo de Trustmark esquivaban esos barrios y que los procedimientos y políticas internos de Trustmark de préstamos justos no eran suficientes como para garantizar que el banco brindara la igualdad de acceso al crédito a las comunidades de color.
El Departamento inició su investigación después de que uno de los reguladores de Trustmark, la OCC, refirió el asunto. Trustmark ha cooperado plenamente en esta investigación y resolvió los alegatos de forma amigable.
«Trustmark excluyó y discriminó, de manera intencional, a comunidades negras e hispanas», declaró Rohit Chopra, el director de la Oficina para la Protección Financiera del Consumidor. «El Gobierno federal luchará por eliminar prácticas empresariales racistas en el mercado, incluyendo aquellas provenientes de algoritmos discriminatorios».
«Para muchas familias estadounidenses, el ser propietario de una vivienda es el fundamento del éxito económico», comentó el Fiscal Federal Interino para el Distrito Oeste de Tennessee, Joseph C. Murphy Jr. «Las prácticas de préstamos justos que se requieren en virtud de las leyes federales, así como la aplicación de dichas leyes, garantizan un mejor futuro para todo estadounidense. Nuestra oficina cree que medidas de aplicación de la ley de esta naturaleza son primordiales para un sistema de préstamos justos que beneficia a todos y seguiremos dando prioridad a estos casos».
«Desde hace mucho tiempo, la OCC ha tenido una sólida asociación con la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles del Departamento de Justicia: ha referido posibles infracciones de las leyes de préstamos justos y hemos compartido nuestros hallazgos extensos de los equipos examinadores, economistas y legales, tal y como hemos hecho en el caso de Trustmark», indicó el Contralor Interino de la Moneda, Michael J. Hsu. «El anuncio de hoy es importante porque representa el enfoque unificado y absoluto que cada una de nuestras agencias ha dedicado a la aplicación de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito. Nuestros esfuerzos colectivos son esenciales al abordaje de las prácticas crediticias discriminatorias que crean y refuerzan la inequidad racial en el sistema financiero».
Conforme la orden de consentimiento propuesto:
- Trustmark invertirá $3.85 millones en un fondo de préstamos subsidiados para incrementar las oportunidades crediticias para residentes actuales y futuros de barrios cuyos residentes son principalmente negros e hispanos en la zona de Memphis; dedicará al menos cuatro oficiales de crédito hipotecario o especialistas en préstamos comunitarios a estos barrios y abrirá una oficina de producción crediticia en un barrio de Memphis cuyos residentes son principalmente negros o hispanos.
- Trustmark dedicará $400,000 al desarrollo de asociaciones comunitarias para la prestación de servicios a residentes de barrios de Memphis que son principalmente negros e hispanos que mejorarán el acceso al crédito hipotecario residencial.
- Por otra parte, Trustmark dedicará al menos $200,000 por año a iniciativas de publicidad, proyección comunitaria, educación financiera del consumidor y reparación del crédito en Memphis y sus alrededores.
- Trustmark pagará a la OCC y la CFPB una sanción civil monetaria que asciende, en su totalidad, a $5 millones.
- Trustmark ya ha establecido un Comité de Supervisión de las Leyes de Préstamos Justos y ha designado un Gestor de Crédito Comunitario que supervisará estos esfuerzos y trabajará estrechamente con el liderazgo del banco.
En agosto del 2021, el Departamento anunció un acuerdo con Cadence Bank por motivos de exclusión financiera. Conforme al acuerdo, Cadence invertirá más de $5.5 millones para mejorar las oportunidades crediticias de residentes de barrios de Houston que son principalmente negros e hispanos.
Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea.
Asunto(s):
Derechos Civiles
Componente(s):
División de Derechos Civiles
Sección de Vivienda y Cumplimiento de la Ley Civil
Fiscalía General
Fiscalía Federal
Readout of Meeting between Department of Justice and the Central Bureau of Investigation of Government of IndiaRead the Press Release
Deputy Assistant Attorney General Arun G. Rao of the U.S. Department of Justice Civil Division’s Consumer Protection Branch, together with colleagues from the Consumer Protection Branch and the FBI, met this week with Central Bureau of Investigation (CBI) officials in New Delhi to further strengthen law enforcement cooperation. They discussed means for combating emerging crime trends, including fighting rising telemarketing fraud.
In their meetings, the parties affirmed their shared commitment to strengthen cooperation in combating crime, specifically with respect to efforts to investigate and prosecute cyber-enabled financial frauds and global telemarketing frauds, including international robocalls and communications.
They additionally discussed the need for continued cooperation in tackling emerging technology-based crimes through faster information exchange and evidence sharing, with a view to ensure security and protection of citizens of both jurisdictions.
Justice Department Reaches Settlement to Remedy Severe Racial Harassment of Black and Asian-American Students in Utah School DistrictRead the Press Release
The Department of Justice’s Civil Rights Division and the United States Attorney’s Office for Utah announced a settlement agreement with Davis School District in Utah to address race discrimination in the district’s schools, including serious and widespread racial harassment of Black and Asian-American students. The department opened its investigation in July 2019 under Title IV of the Civil Rights Act of 1964.
The investigation revealed persistent failures to respond to reports of race-based harassment of Black and Asian-American students by district staff and other students. The department’s review, which focused on 2015-2020, found hundreds of documented uses of the N-word, among other racial epithets, derogatory racial comments, and physical assaults targeting district students at dozens of schools. The department concluded that for years, Davis’s ineffective response left students vulnerable to continued harassment and that students believed the district condoned the behavior. The department also found that Davis disciplined Black students more harshly than their white peers for similar behavior and that Davis denied Black students the ability to form student groups while supporting similar requests by other students. Black and Asian-American students are each roughly 1 percent of the approximately 73,000 students enrolled in the district.
“Pervasive racial harassment and other forms of racial discrimination in public schools violate the Constitution’s most basic promise of equal protection,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “This agreement will help generate the institutional change necessary to keep Black and Asian-American students safe. We look forward to Davis demonstrating to its students and school community that it will no longer tolerate racial discrimination in its schools.”
“The Justice Department thanks the many parents and students who came forward and shared their experiences and the Davis School District for its cooperation with our investigation,” said Acting United States Attorney Andrea Martinez for the District of Utah. “As the federal partners who work and live in this community, we are hopeful that this agreement is the start of a new chapter in which Black and Asian-American students will attend Davis schools without fear.”
Under the agreement, Davis will retain a consultant to review and revise anti-discrimination policies and procedures and support the district as it undertakes significant institutional reforms. Among other steps, Davis will:
- create a new department to handle complaints of race discrimination;
- train staff on how to identify, investigate, and respond to complaints of racial harassment and discriminatory discipline practices;
- inform students and parents of how to report harassment and discrimination;
- create a centralized, electronic reporting system to track and manage complaints and Davis’s response to complaints;
- implement student, staff, and parent training and education on identifying and preventing race discrimination, including discriminatory harassment;
- analyze and review discipline data and amend policies to ensure non-discriminatory enforcement of discipline policies; and
- develop a districtwide procedure to assess requests for student groups and treat such requests fairly.
Protecting the constitutional rights of public school students is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.
View the summary of the agreement here.
Former Private Prisoner Transport Officer Sentenced to Life Plus Five Years for Sexually Assaulting Two Women in His CustodyRead the Press Release
A federal judge in Little Rock, Arkansas, sentenced Eric Scott Kindley, 53, a former private prisoner transport officer, to life plus five years in prison for sexually assaulting two different women in his custody during two different transports in 2014 and 2017, and for knowingly possessing a firearm in furtherance of the 2017 sexual assault.
The sentence comes after a jury returned guilty verdicts on March 12, 2020, to all counts in the indictment. The evidence at trial established that Kindley operated his own private prisoner transport company that contracted with local jails throughout the country to transport individuals who were arrested on out-of-state warrants. Even though the indictment charged Kindley with only two sexual assaults that occurred within the jurisdiction of the Eastern District of Arkansas, the jury heard from six women who he transported between 2012 and 2017. All the women testified that Kindley transported them alone, sometimes for hundreds of miles. The women were all handcuffed and shackled. As Kindley drove the women to desolate locations, he threatened to kill them and made sexually explicit comments that escalated in intensity and depravity.
“Those who act under color of law and commit sexual assault cannot rely on their position of power or their victims’ vulnerabilities to escape accountability,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “While these crimes may be difficult to detect, a survivor’s account is evidence, will be taken seriously, an investigation will ensue, and, where appropriate, punishment will follow. We thank the survivors of these sexual assaults for having the courage to come forward despite the defendant’s repeated attempts to silence them. The Civil Rights Division will continue to vigorously hold accountable those who abuse their authority by committing sexual assault.”
“This sentence sends a clear message, that this abuse of power and disregard for individual’s basic rights cannot and will not be tolerated,” said Special Agent in Charge Sean Kaul of the FBI Phoenix Field Office. “The FBI commends the victims who bravely came forward to report Kindley's actions. We remain fully committed to protecting the rights of all citizens and appreciate the partnership of the other FBI Field Offices, U.S. Attorney's Offices, and the Department of Justice Civil Rights Division during this investigation and prosecution."
One of the women listed in the indictment testified that when Kindley transported her from Alabama to Arizona in 2017, he stopped his van in a deserted area near Little Rock purportedly to allow her to urinate. There, he sexually assaulted her while she was handcuffed, threatened her with a firearm, and reminded her, as he did with other victims, that she was “an inmate in transport” and that no one would believe her if she reported what happened. Another woman listed in the indictment testified that when Kindley transported her in 2014, he stopped his van in a deserted area, also in Arkansas, under the guise of having gotten lost. There, he violently forced her to perform a sex act on him. A third woman testified that during her transport in 2013 from Florida to Texas, Kindley pulled his van over to the side of a dark road, both purportedly to let her urinate and under the guise of having gotten lost. There Kindley sexually assaulted her. A fourth woman testified that during her 2012 transport, from Nevada to California, Kindley stopped his van in a deserted hiking area. There, he forced her to perform a sex act on him in a park bathroom. A fifth woman testified that during her transport in 2013, from California to Montana, Kindley attempted to sexually assault her after he pulled over to the side of the road during a snowstorm. None of the women knew each other, and it was only during the trial that they learned the others existed.
According to court documents, the federal investigation into Kindley’s conduct began in January 2017, when two women, housed together in a small jail in Arizona, reported that Kindley sexually assaulted them during two separate transports. The years-long investigation thereafter uncovered 16 women whom the defendant subjected to some form of sexual misconduct during transport, often culminating in forceful sexual assault. During the sentencing hearing, the United States submitted victim impact statements from 11 women who Kindley transported, and two former domestic partners. The women described the corrosive impact of a person with power shattering their trust in law enforcement with vile words and acts. As one woman summed up, “I’m wary of government officials because of what Eric Kindley had said and [did] during my transport …The offender in this case used his so called ‘position of power’ to cause [me] to endure undue stress, grief, and loss of self-worth.”
Chief U.S. District Judge D. P. Marshall Jr. sentenced Kindley to life in prison plus five years and ordered that the defendant pay a total of $20,275 in restitution to the two victims listed in the indictment for mental health treatment and counseling for trauma.
This case was investigated by the Phoenix Division of the FBI with assistance from FBI field offices throughout the United States. It was prosecuted by Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice, with assistance from the U.S. Attorney’s Offices for the Eastern District of Arkansas and the District of Arizona.
Department of Justice Files Suit to Recover Forfeiture Penalty for Nearly 5,000 Illegally Spoofed RobocallsRead the Press Release
Wednesday, the Department of Justice served a complaint filed against a Montana man to recover a $9.9 million penalty imposed by the Federal Communications Commission (FCC) for nearly 5,000 unlawful and malicious “spoofed” robocalls.
In a complaint filed in U.S. District Court for the District of Montana, the government alleged that Scott Rhodes, 52, of Libby, Montana, made 4,959 illegal robocalls with falsified caller ID information, with the intent to cause harm. The targets of the alleged robocall campaigns included individuals across the United States, many of whom complained to law enforcement regarding unwanted and harassing calls. An investigation by the FCC culminated in the imposition by the agency of over $9.9 million forfeiture penalty against Rhodes. The lawsuit, filed today, seeks to recover that penalty and obtain an injunction that would prevent Rhodes from committing any further violations of the Truth in Caller ID Act.
According to the FCC’s investigation, Rhodes’ unlawful spoofed robocalls allegedly included highly inflammatory messages indicative of Rhodes’ intent to cause harm. For example, hundreds of Rhodes’ spoofed robocalls targeted residents of Brooklyn, Iowa, in the aftermath of a local woman’s murder. Those spoofed robocalls allegedly included a message that the local woman had been murdered by a “biological hybrid of white and savage Aztec ancestors” and that if she “could be brought back to life for just one moment,” she would ask the listener to “kill them all.” Over two thousand of the spoofed robocalls allegedly targeted residents of Charlottesville, Virginia, during the investigation and prosecution of James Alex Fields Jr., who was responsible for killing one woman and injuring dozens during the “Unite the Right" rally in August 2017. The spoofed robocalls included a message that Charlottesville’s “Jew Mayor” and “his pet Negro Police Chief” were responsible for the death of the “unhealthy, morbidly obese” victim. The message also stated, “We’re no longer going to tolerate a Jewish lying press, and Jew corruption of an American legal system.”
“It is unlawful to spoof caller ID numbers to trick consumers into answering unwanted phone calls with the intent to defraud, cause harm or wrongfully obtain anything of value,” said Acting Assistant Attorney General Brian Boynton for the Justice Department’s Civil Division. “The department will work with its agency partners to vigorously enforce the telemarketing laws that prohibit these practices.”
“Combatting illegal robocalls is a top consumer protection priority of the FCC,” said Acting Chairwoman Jessica Rosenworcel of the FCC. “In this case, the FCC’s investigation found an ugly pattern of spoofing used to bombard and target communities with malicious robocalls. Working with the Department of Justice, the FCC will stand by this fine and demand payment. I also welcome the department’s decision to seek an injunction to put a stop to this unlawful behavior.”
Senior Litigation Counsel Patrick Runkle and Trial Attorney Michael Wadden of the Justice Department’s Consumer Protection Branch are prosecuting the case with the assistance of Assistant U.S. Attorney Shannon Clarke for the District of Montana.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DEA Announces 21st National Prescription Take Back DayRead the Press Release
United States Attorney SHAWN N. ANDERSON, for the Districts of Guam and the Northern Mariana Islands (NMI), will join the Drug Enforcement Administration (DEA) on Saturday, October 23rd for its 21st National Prescription Drug Take Back Day. The biannual event will be held from 10:00 a.m. to 2:00 p.m., at thousands of collection sites around the country, including here in Guam and the NMI. This event offers free and anonymous disposal of unneeded medications at more than 4,000 local drop-off locations nationwide.
The United States is in the midst of an opioid epidemic—drug overdoses are up thirty percent over the last year alone and taking more than 250 lives every day. The majority of opioid addictions in America start with prescription pills found in medicine cabinets at home.
In April 2021, citizens of Guam and the NMI turned in over 1,565 pounds collectively. According to the Centers for Disease Control and Prevention reported that last year, more than 93,000 people died of drug overdoses in the United States, marking the largest number of drug-related deaths ever recorded in a year. Opioid-related deaths accounted for 75 percent of all overdose deaths in 2020.
The following sites in Guam and the NMI are designated to receive unused prescription drugs and vaping device products on Saturday, October 23, 2021, between 10:00 a.m. and 2:00 p.m.:
- Agana Shopping Center (Center Court)
- Andersen Air Force Base Exchange (Entrance to Store)
- Dededo Mayor’s Office
- Malesso’ Mayor’s Office
- Naval Base Guam - Navy Exchange (Food Court)
- Saipan Commonwealth Health Center (Outpatient Pharmacy)
- Rota Health Center
- Tinian Health Center
Contact DEA Resident Agent in Charge Kenneth Bowman at 671-472-7384 regarding any questions about prescription drug abuse and any concerns regarding drug-related activity on Guam or in the NMI.
For more information, go to www.dea.gov, www.DEATakeBack.com
Tennessee Man Pleads Guilty to Civil Rights Violations for Series of Church ArsonsRead the Press Release
A Tennessee man pleaded guilty today to civil rights violations for a series of church arsons.
Alan Douglas Fox, 28, of Nashville, pleaded guilty to all counts of an information charging him with setting fire to the Crievewood United Methodist Church on June 17, 2019; the Crievewood Baptist Church on June 25, 2019; the Saint Ignatius of Antioch Catholic Church on June 25, 2019; and the Priest Lake Community Baptist Church on June 26, 2019; and with carrying and using a firearm during the arson of the Crievewood Baptist Church. During the plea hearing, Fox admitted to intentionally setting the fires because of the religious character of the four churches.
“The defendant in this case set fire to four Christian churches, causing fear and anguish to church members and their denominations. The freedom to practice the religion we choose, without discrimination or danger, is a fundamental civil right in our nation and a hallmark of our democracy,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to prosecute, to the fullest extent of the law, those who target and harm houses of worship because of bigotry and prejudice.”
“The U.S. Attorney’s Office will always pursue those, who by their malicious actions, infringe upon our freedom of religion,” said Acting U.S. Attorney Mary Jane Stewart of the Middle District of Tennessee. “I commend our law enforcement partners and our prosecution team for bringing this individual to justice.”
U.S. District Judge Eli J. Richardson of the Middle District of Tennessee scheduled sentencing for Feb. 11, 2022. By the terms of the plea, Fox faces up to 20 years in prison for each fire and a consecutive five-year sentence for the firearms violation.
The FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department, and the Nashville Fire Department investigated the case. Assistant U.S. Attorney Sara Beth Myers and Trial Attorney Kyle Boynton of the Department’s Civil Rights Division are prosecuting it.
District Court Orders Utah Company to Stop Distribution of Unapproved New Drugs and Adulterated ProductsRead the Press Release
A federal court today ordered Utah company Grandma’s Herbs, Inc. and its owners, Kevin Parr and Tracey Parr, to stop distributing unapproved and misbranded drugs in violation of the Federal Food, Drug, and Cosmetic Act (FDCA), the Department of Justice Department announced.
In a complaint filed on Oct. 18, the United States alleged that Grandma’s Herbs and the Parrs violated the FDCA by distributing products intended to cure, mitigate, treat or prevent disease that were neither approved by the U. S. Food and Drug Administration (FDA) nor exempt from approval. The complaint alleged that the defendants claimed on their website that some of their products have antimicrobial and antiviral capabilities, prevent heart disease or treat urinary tract infections, upper respiratory tract infections, allergies, epilepsy and ulcers, among other health claims. The complaint alleged that the products also were misbranded drugs, because their labeling failed to bear adequate directions for use, as required by the FDCA.
“Products intended to treat or cure diseases require FDA approval,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Consumers are entitled to know that the drugs they take have been shown to be safe and effective. The department is committed to ensuring that companies distributing drugs and nutritional supplements comply with federal law.”
“The U.S. Attorney’s Office is committed to working with our counterparts at the Department of Justice’s Consumer Protection Branch and the FDA to ensure that the health and well-being of consumers is protected from those that attempt to circumvent federal laws and sell potentially dangerous products,” said Acting U.S. Attorney Andrea T. Martinez for the District of Utah.
“The FDA’s action is aimed at protecting consumers who unknowingly put their health at risk by using products with claims to cure, treat or prevent a serious illness,” said Associate Commissioner Judy McMeekin, Pharm.D., for FDA Regulatory Affairs. “We urge consumers to seek proven treatments recommended by licensed health care professionals. We previously warned this manufacturer, but they continued to make claims that their products could treat or prevent serious diseases. We took action to protect consumers.”
The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The consent decree requires, among other things, that the defendants stop manufacturing, processing, labeling, holding or distributing any drug, including products the defendants claim can treat or cure disease, until they comply with federal law. Defendants must either obtain FDA approval for all drug products or remove such drug claims from their labels, websites and other promotional materials.
The government was represented by Trial Attorney Ann Entwistle of the Justice Department’s Consumer Protection Branch, with the assistance of William Thanhauser of the FDA’s Office of Chief Counsel. The U.S. Attorney’s Office for the District of Utah provided assistance.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Convicted Felon Sentenced to 87 Months Imprisonment for Illegal Possession of FirearmsRead the Press Release
EAST ST. LOUIS, Ill. – A man from the Metro East will spend more than seven years in prison for
illegally possessing firearms. Michael L. Dawson, 29, of East St. Louis, Illinois, was sentenced to
87 months in federal prison for being a Felon in Possession of a Firearm.The crime occurred in December of 2019 when the United States Marshals Service located Dawson at
his residence in East St. Louis, Illinois, and arrested him on an active arrest warrant. Agents
recovered a total of six different guns. One of the weapons found was a semi-automatic rifle with
a high-capacity magazine. An assortment of miscellaneous ammunition was also discovered
during the search. Federal law prohibits convicted felons from possessing firearms or firearm
ammunition. A federal grand jury indicted Dawson in January of 2020, and Dawson pled guilty on
June 24, 2021.As part of his sentence, Dawson will serve a three-year term of supervised release following his
release from federal prison.The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF),
the United States Marshals Service Great Lakes Regional Fugitive Task Force, and the Illinois State
Police.
Assistant U.S. Attorneys Ali Burns and David Dean prosecuted the case.Collinsville Man Sentenced for Distribution of MethamphetamineRead the Press Release
EAST ST. LOUIS, Ill. – Deonta J. Thomas, 29, of Collinsville, Illinois, was sentenced to 10 years
imprisonment for distribution of methamphetamine on October 18, in federal court in East St. Louis.
Thomas previously pled guilty to this offense on May 20, 2021. As part of his guilty plea, Thomas
acknowledged that on September 27, 2018, he sold approximately 442 grams of
crystal methamphetamine to an individual at the Casino Queen in East St. Louis, Illinois, in
exchange for $2,800.In addition to the 10-year term of imprisonment, Thomas will serve a 3-year term of
supervised release following his release from the Bureau of Prisons. Thomas was also ordered to
pay a fine of $500.This case was investigated by the Drug Enforcement Administration.
Assistant United States Attorney Daniel T. Kapsak prosecuted the case.Tennessee Physician Sentenced to 20 Years in Prison for Hydrocodone Distribution Resulting in DeathRead the Press Release
A Tennessee physician was sentenced today in the Western District of Tennessee to 20 years in prison for his unlawful prescribing of opioids that caused the death of one of his patients.
According to court documents, Thomas K. Ballard III, 63, of Jackson, a medical doctor, owned and operated the Ballard Clinic, where he prescribed controlled substances outside the scope of professional practice and not for a legitimate medical purpose. Among other things, Ballard engaged in inappropriate sexual contact with several female patients while he ignored red flags that they were abusing the medications he prescribed. These abuses were often reflected in Ballard’s own medical records.
Ballard’s unlawful prescribing to one patient led to her death. Ballard’s treatment records indicated that he believed the patient had psychiatric issues, overutilized medication, had engaged in manipulation, and fabricated personal trauma. The records also reflected that the patient had been incarcerated, received prescriptions elsewhere for Suboxone, a drug used to treat opioid dependency disorder, and that she had abnormal drug testing results, including because of what Ballard believed was tampering. Nevertheless, Ballard prescribed the patient hydrocodone repeatedly, including on May 28, 2015. She fatally overdosed on the prescription drug the following day. On June 23, 2021, Ballard pleaded guilty to one count of illegal drug distribution resulting in death.
“Today’s sentence reflects the gravity of physicians causing death by illegally prescribing opioids,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Loss of life is a tragic outcome of physicians like Ballard acting as drug dealers instead of doctors. Those responsible for fatal overdoses – especially those who are in positions of trust like Ballard – must be held accountable for their roles in the opioid epidemic. This serious criminal conduct requires serious consequences.”
“With blatant disregard for the Hippocratic Oath, Ballard endangered his patients’ lives through illegitimate and reckless prescribing,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “DEA tirelessly pursues the people responsible for flooding our nation with illegal drugs, to include doctors who misuse their positions for personal gain. Those who supply opioids illegally have one thing in common: they demonstrate total disregard for the lives and safety of those who live in our communities. DEA will continue to battle the U.S. opioid epidemic one case at a time, and today’s sentencing demonstrates our commitment to justice.”
“Physicians are entrusted to care for patients and prescribe medically necessary medications. The death of a vulnerable woman exemplifies the devastating impact of Ballard’s disregard for his patients and profession,” said Special Agent in Charge Derrick L. Jackson with the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, HHS-OIG will continue to hold accountable medical professionals whose illicit activities endanger the lives of patients in their care.”
“It’s extremely disappointing to see a member of the medical community totally disregard his Hippocratic Oath,” said Special Agent in Charge Terry Reed of the Tennessee Bureau of Investigation (TBI), Medicaid Fraud Division. “Ballard put his patients at risk in order to satisfy his greed and will now spend time in federal prison for recklessly prescribing highly addictive and powerful opioids. The Tennessee Bureau of Investigation and its law enforcement partners will continue to expose the greed and deceit taking precedence over patient care.”
The DEA, HHS-OIG, and TBI investigated the case.
Trial Attorneys Drew Pennebaker and Emily Petro of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the department’s Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 federal districts, has charged more than 85 defendants who collectively are responsible for distributing more than 65 million pills. The ARPO Strike Force is part of the Health Care Fraud Strike Force Program, which since March 2007 has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Massachusetts Woman Sentenced to Prison on Tax and Drug Charges Arising from Multimillion-Dollar Black Market Marijuana EnterpriseRead the Press Release
A Massachusetts woman was sentenced today to four years in prison for tax evasion, conspiracy to distribute and to possess with intent to distribute 50 kilograms or more of marijuana, possession with intent to distribute marijuana, and money laundering.
According to court documents, Deana Martin, of Milton, controlled Northern Herb, a black-market marijuana delivery service that operated in Massachusetts from 2015 to 2018. While Northern Herb purported to sell medical marijuana, it did not require a customer to provide proof of a medical marijuana card. Furthermore, Northern Herb would deliver marijuana to unattended locations, such as a front door or car, where unknown third parties might have access to the package. Northern Herb used locations in Canton, Milton, Foxborough, and Hyde Park to store and distribute marijuana, and employed at least 25 workers.
From May 2016 through July 2018, Northern Herb had total revenue exceeding $14 million. Northern Herb did not withhold or pay employment taxes. Martin evaded employment taxes that Northern Herb owed by operating in cash and using nominee entities to manage Northern Herb’s finances. Further, Northern Herb did not file with the IRS required reports documenting the payments made to Northern Herb’s employees and independent contractors. Martin caused a tax loss of more than $500,000.
In addition to the term of imprisonment, U.S. District Judge Timothy S. Hillman ordered Martin to serve three years of supervised release and to pay approximately $528,146.66 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Nathaniel R. Mendell for the District of Massachusetts made the announcement.
The Drug Enforcement Administration and IRS Criminal Investigation investigated the case.
Assistant Chief Kathleen M. Barry of the Justice Department’s Tax Division and Assistant U.S. Attorneys William Abely and John Mulcahy of the USAO prosecuted the case.
Justice, Labor Departments Reach Settlements with Facebook Resolving Claims of Discrimination Against U.S. Workers and Potential Regulatory Recruitment ViolationsRead the Press Release
The U.S. Department of Justice and the U.S. Department of Labor today announced separate settlement agreements with Facebook regarding its use of the permanent labor certification program (PERM). The Justice Department’s settlement resolves its claims that Facebook routinely refused to recruit, consider or hire U.S. workers, a group that includes U.S. citizens, U.S. nationals, asylees, refugees and lawful permanent residents, for positions it had reserved for temporary visa holders in connection with the PERM process. Additionally, the Labor Department’s settlement resolves issues it separately identified through audit examinations of Facebook’s recruitment activities related to its PERM applications filed with the Employment and Training Administration’s Office of Foreign Labor Certification (OFLC).
In December 2020, the Justice Department filed a lawsuit against Facebook, alleging that from at least Jan. 1, 2018, until at least Sept. 18, 2019, Facebook routinely reserved jobs for temporary visa holders through the PERM process. Specifically, the lawsuit alleged that, in contrast to its standard recruitment practices, Facebook used recruiting methods designed to deter U.S. workers from applying to certain positions, such as requiring applications to be submitted by mail only; refused to consider U.S. workers who applied to the positions; and hired only temporary visa holders. According to the lawsuit, Facebook’s hiring process for these positions intentionally discriminated against U.S. workers because of their citizenship or immigration status, in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA). The INA generally prohibits employers from discriminating against workers because of their citizenship or immigration status.
In early 2021, the Labor Department initiated audit examinations of Facebook’s pending PERM applications to determine compliance with regulatory requirements. As a result of these audits, OFLC identified potential regulatory recruitment violations and sought additional information from Facebook in an effort to confirm that Facebook followed all applicable regulatory requirements regarding the posting and advertisement requirements for these positions.
Under the DOJ settlement, Facebook will pay a civil penalty of $4.75 million to the United States, pay up to $9.5 million to eligible victims of Facebook’s alleged discrimination, and train its employees on the anti-discrimination requirements of the INA. In addition, Facebook will be required to conduct more expansive advertising and recruitment for its job opportunities for all PERM positions, accept electronic resumes or applications from all U.S. workers who apply, and take other steps to ensure that its recruitment for PERM positions closely matches its standard recruitment practices. Today’s civil penalty and backpay fund represent the largest fine and monetary award that the Division ever has recovered in the 35-year history of the INA’s anti-discrimination provision.
“Facebook is not above the law, and must comply with our nation’s federal civil rights laws, which prohibit discriminatory recruitment and hiring practices,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Companies cannot set aside certain positions for temporary visa holders because of their citizenship or immigration status. This settlement reflects the Civil Rights Division’s commitment to holding employers accountable and eradicating discriminatory employment practices.”
Under the DOL OFLC settlement, Facebook will conduct additional notice and recruitment for U.S. workers and will be subject to ongoing audits to ensure its compliance with applicable regulations.
“This settlement is an important step forward and means that U.S. workers will have a fair chance to learn about and apply for Facebook’s job opportunities,” said Seema Nanda, Solicitor at the Department of Labor. “No matter an employer’s size or reach, the Department of Labor is committed to vigorously enforcing the law.”
The Department of Justice, 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.
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.
The Department of Labor, Employment and Training Administration’s Office of Foreign Labor Certification (OFLC) provides national leadership and policy guidance to carry out the responsibilities of the Secretary of Labor under the INA, as amended, concerning the admission of foreign workers to the United States for employment.
A permanent labor certification allows an employer to hire a foreign worker to work permanently in the United States. In most instances, before the U.S. employer can submit an immigration petition to the Department of Homeland Security’s U.S. Citizenship and Immigration Services (USCIS), the employer must obtain a certified labor certification application from OFLC. The Secretary of Labor must certify to the USCIS that there are not sufficient U.S. workers able, willing, qualified and available to accept the job opportunity in the area of intended employment and that employment of the foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers.
Suspected violations relating to the PERM labor certification process can be promptly referred to OFLC at [email protected].
Department of Justice Issues Annual Report to Congress on its Work to Combat Elder Fraud and AbuseRead the Press Release
The Department of Justice issued its Annual Report to Congress on its Activities to Combat Elder Fraud and Abuse. The report summarizes the department’s extensive elder justice efforts from July 1, 2020 through June 30, 2021.
As Attorney General Merrick B. Garland recognized, the COVID-19 pandemic exposed and exacerbated injustices faced by far too many of the most vulnerable among us, including older Americans. Even with the unprecedented challenges of the COVID-19 pandemic, the department achieved noteworthy success in combating elder abuse, neglect and financial exploitation and fraud as detailed in the report.
“While technology has brought the world together in many ways, it has also opened the door to a myriad of fraud schemes that prey upon older adults,” said Deputy Attorney General Lisa O. Monaco. “The department will not hesitate to use all the tools at its disposal to identify and disrupt such schemes, wherever they may originate or occur.”
“The COVID-19 pandemic has heightened the risk for abuse directed towards seniors who are socially isolated and vulnerable to exploitation,” said Associate Attorney General Vanita Gupta. “As this Annual Report demonstrates, the department has marshalled a wide array of tools – enforcement actions, research, public education and outreach, training and victim services – to combat elder abuse and to ensure that our seniors have the support and protections that they deserve.”
Collectively, the department brought over 220 criminal and civil enforcement actions covering nearly 20 different types of fraud that targeted or disproportionately affected older Americans. Fraud types included tech support scams, veteran scams and fraud perpetrated by guardians and powers of attorney which are particularly egregious as these individuals hold a special duty to care. For the first time, the department brought cases that disrupted conduct facilitating fraud by stopping overseas internet calling services that facilitate fraudulent robocalls, and bringing down data companies and list brokers than facilitate mass marketing fraud. Interrupting fraud schemes prior to reaching older adults is key in the fight against elder fraud.
Over the past year, the department invested heavily in training and tools to ensure federal, state and local elder justice professionals are equipped to hold offenders accountable while ensuring victims receive the services they need. For example, the department supported the development of online elder abuse training for law enforcement that, for the first time, enables law enforcement officers to receive Peace Officer Standards and Training credit in 36 states.
The report also highlighted the many ways the department provides victim support for older Americans. For example, the FBI’s Recovery Asset Team was able to work with financial institutions to freeze over $13.5 million (a 75% success rate) among older victims of fraud before those monies were wired and lost to the victims. Moreover, the department’s Office for Victims of Crime awarded Victims of Crime Act (VOCA) grants to states totaling more than $1.6 billion, with $86 million of that allocated for programs serving older crime victims.
Components throughout the department engaged in public outreach activities as part of the department’s effort to prevent elder abuse. For example, many U.S. Attorney’s Offices participated in local outreach events such as town halls and media events, both in conjunction with World Elder Abuse Awareness Day celebrations and otherwise. In 2021, the National Crime Victims’ Rights Week (NCVRW) Resource Guide featured elder fraud and the National Elder Fraud Hotline.
Finally, research and statistical components within the department play a critical role in funding or producing information thereby enhancing our understanding of elder abuse, and ultimately informing policy and practice. The FBI’s Internet Crime Complaint Center (IC3) released the first 2020 Elder Fraud Report providing information useful for targeting interventions. For example, the report found that over 100,000 persons over the age of 60 filed a complaint, with a resulting loss of nearly $1 billion, although the greatest financial losses were associated with confidence fraud/romance scams.
To report financial fraud, call the National Elder Fraud Hotline, 1-833-FRAUD-11 (1-833-372-8311). For more information on the department’s elder justice activities, visit https://www.justice.gov/elderjustice.
Credit Suisse Resolves Fraudulent Mozambique Loan Case in $547 Million Coordinated Global ResolutionRead the Press Release
Credit Suisse Group AG, a global financial institution headquartered in Switzerland, and Credit Suisse Securities (Europe) Limited (CSSEL), its subsidiary in the United Kingdom (together, Credit Suisse), have admitted to defrauding U.S. and international investors in the financing of an $850 million loan for a tuna fishing project in Mozambique, and have been assessed more than $547 million in penalties, fines, and disgorgement as part of coordinated resolutions with criminal and civil authorities in the United States and the United Kingdom. After taking account of crediting by the department of the other resolutions, Credit Suisse will pay approximately $475 million to authorities in the United States and the United Kingdom, as well as restitution to victims in an amount to be determined by the court.
“Credit Suisse Group AG, through its U.K. subsidiary CSSEL, defrauded U.S. and international investors in connection with a lending project in Mozambique,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Among other things, Credit Suisse Group AG, CSSEL, and their co-conspirators deceived investors by hiding information about the risk that loan proceeds were used for illegal purposes in connection with the restructuring of the loan. Today’s coordinated resolution with the U.S. Securities and Exchange Commission and the Financial Conduct Authority in the United Kingdom shows that the department will not tolerate fraud by international financial institutions and is committed to working in parallel to domestic and foreign authorities to use all tools at our disposal to hold corporate wrongdoers accountable.”
According to court documents filed today in the U.S. District Court for the Eastern District of New York and statements made during the proceeding, Credit Suisse Group AG entered into a three-year deferred prosecution agreement with the department in connection with a criminal information charging Credit Suisse Group AG with conspiracy to commit wire fraud, and CSSEL pleaded guilty to a one-count criminal information charging it with conspiracy to commit wire fraud.
This resolution follows the prior entry of guilty pleas by three CSSEL bankers. In July 2019, Andrew Pearse, a former managing director of CSSEL, pleaded guilty to conspiracy to commit wire fraud. In September 2019, Surjan Singh, a former managing director of CSSEL, pleaded guilty to conspiracy to commit money laundering, and in May 2019, Detelina Subeva, a former vice president of CSSEL, also pleaded guilty to conspiracy to commit money laundering.
“Over the course of several years, Credit Suisse, through its subsidiary in the United Kingdom, engaged in a global criminal conspiracy to defraud investors, including investors in the United States, by failing to disclose material information to investors, including millions of dollars in kickbacks to its bankers and a high risk of corruption, in connection with an $850 million fraudulent loan to a Mozambique state-owned entity,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This coordinated global resolution demonstrates this Office’s commitment to working across borders with our global law enforcement partners to root out abuse and fraud by financial institutions in order to protect investors here in the United States.”
According to Credit Suisse’s admissions and court documents, between 2013 and March 2017, Credit Suisse, through CSSEL, and co-conspirators used U.S. wires and the U.S. financial system to defraud investors in securities related to a Mozambican state-owned entity, Empresa Moçambicana de Atum S.A. (EMATUM), which Mozambique created to develop a state-owned tuna fishing project. Credit Suisse, through its employees and agents, conspired to and did defraud investors and potential investors in EMATUM by making numerous material misrepresentations and omissions relating to, among other things, (1) the use of loan proceeds; (2) kickback payments to CSSEL bankers and the risk of bribes to Mozambican officials; and (3) the existence and maturity dates of debt owed by Mozambique, including another loan that Credit Suisse arranged to a Mozambique state-owned entity (ProIndicus) and a different loan another bank arranged with Credit Suisse’s knowledge. Credit Suisse represented to investors that the loan proceeds would only be used for the tuna fishing project. Instead, co-conspirators diverted loan proceeds obtained from investors. Specifically, a contractor that supplied boats and equipment for EMATUM and that received the loan proceeds from Credit Suisse paid kickbacks of approximately $50 million to CSSEL bankers and bribes totaling approximately $150 million to Mozambican government officials.
Credit Suisse also admitted that it identified significant red flags prior to and during the EMATUM financing. For example, Credit Suisse had learned of significant corruption and bribery concerns associated with the contractor. In addition, in or about 2015, Credit Suisse became aware that EMATUM had encountered problems servicing the loan, raising the risk of default. Credit Suisse agreed to arrange the restructuring and exchange of the original EMATUM security into a bond with a longer maturity date. During the restructuring, Credit Suisse employees raised concerns about corruption allegations made in the press and disparities in the use of loan proceeds. To address these concerns, Credit Suisse retained two independent industry experts to conduct a market valuation of the tuna fishing boats and other goods the contractor provided for the EMATUM project. Credit Suisse knew that the experts identified a shortfall of between $265 million and $394 million between the funds raised for the EMATUM loan and the fair market value of the boats and accompanying infrastructure and training the contractor sold to EMATUM. Credit Suisse did not disclose this material information to investors during the restructuring and the exchange. Aspects of Credit Suisse’s fraudulent conduct were revealed beginning in April 2016, causing the price of the EMATUM securities to drop and resulting in losses to investors.
Under the terms of its agreements, Credit Suisse’s penalty is approximately $247.5 million. After crediting by the department for payments to other authorities, Credit Suisse will pay approximately $175.5 million to the United States. Credit Suisse has also agreed to a methodology to calculate proximate fraud loss for victims of its criminal conduct; the amount of restitution payable to victims will be determined at a future proceeding. Credit Suisse also reached separate parallel resolutions with the U.S. Securities and Exchange Commission (SEC) and the United Kingdom’s Financial Conduct Authority (FCA). Switzerland’s Financial Market Supervisory Authority (FINMA) also engaged in an enforcement action, which includes the appointment of an independent third-party to review the implementation and effectiveness of compliance measures for business conducted in financially weak and high-risk countries, subject to FINMA’s administrative process.
The department reached this resolution with Credit Suisse based on several factors, including its failure to voluntarily disclose the conduct to the department and the nature and seriousness of the offense, which included the involvement of bankers within CSSEL. Credit Suisse received only partial credit for its cooperation with the department’s investigation because it significantly delayed producing relevant evidence. Accordingly, the total penalty reflects a 15% reduction off the bottom of the applicable U.S. Sentencing Guidelines range. Credit Suisse has also agreed to continue to cooperate with the department, to enhance its compliance program and internal controls, and to provide enhanced reporting to the department on the Credit Suisse’s remediation and compliance program. Among other things, the enhanced reporting provisions require Credit Suisse to meet with the department at least quarterly and to submit yearly reports regarding the status of its remediation efforts, the results of its testing of its compliance program, and its proposals to ensure that its compliance program is reasonably designed, implemented, and enforced so that it is effective in deterring and detecting violations of fraud, money laundering, the Foreign Corrupt Practices Act, and other applicable anti-corruption laws.
The FBI is investigating the case.
Trial Attorneys Margaret A. Moeser of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), David M. Fuhr and Katherine Nielsen of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Hiral D. Mehta of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs provided critical assistance in this case.
The department appreciates the significant assistance provided by the SEC and the FCA. The department also expresses its appreciation for the assistance provided by authorities in Switzerland and the United Kingdom in responding to Mutual Legal Assistance requests.
MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
Additional information about the Fraud Section’s role in the Criminal Division’s efforts to combat economic crime can be found at www.justice.gov/criminal-fraud.
Texas Physician Found Guilty for Unlawfully Prescribing over 1.3 Million Doses of OpioidsRead the Press Release
A federal jury convicted a Houston-area physician for unlawfully prescribing more than 1.3 million doses of opioids.
According to court documents and evidence presented at trial, Parvez Qureshi, 56, of Houston, Texas, a medical doctor, conspired to and did unlawfully prescribe controlled substances from 2014 through February 2016 for patients at Spring Shadows Medical Clinic of Houston (Spring Shadows), a clinic owned by Rubeena Ayesha, an advanced practice nurse practitioner. Ayesha, 52, of Houston, previously pleaded guilty to participating in the scheme and is awaiting sentencing before U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas.
Trial evidence showed that Qureshi issued unlawful prescriptions for controlled substances to over 90 people on the clinic’s busiest days. So-called “runners” brought numerous people to pose as patients at Spring Shadows and paid for their visits. Spring Shadows charged approximately $250-$500 for each patient visit and required payment in cash.
The evidence also showed that Qureshi pre-signed prescriptions for controlled substances and issued prescriptions for patients who were not evaluated by a physician. Throughout the scheme, Qureshi wrote prescriptions for over 1.3 million dosage units of hydrocodone, and over 40,000 dosage units of oxycodone, both Schedule II controlled substances. Ayesha wrote prescriptions for over one million dosage units of carisoprodol, commonly known as Soma, a Schedule IV controlled substance, usually for patients who had also been prescribed oxycodone or hydrocodone by Qureshi. The combination of oxycodone/hydrocodone and carisoprodol is a dangerous drug cocktail with no known medical benefit. The clinic made over $4 million from prescriptions issued in the scheme, over $1.5 million of which went to Qureshi.
Qureshi was convicted of one count of conspiracy to unlawfully distribute and dispense controlled substances and four counts of unlawfully distributing and dispensing controlled substances. He is scheduled to be sentenced on Jan. 10, 2022, and faces a maximum penalty of 20 years in prison per 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, Acting U.S. Attorney Jennifer K. Lowery of the Southern District of Texas, and Special Agent in Charge Daniel C. Comeux of the Drug Enforcement Administration’s (DEA’s) Houston Division made the announcement.
DEA investigated the case.
Trial Attorneys Devon Helfmeyer and Monica Cooper of the Criminal Division’s Fraud Section are prosecuting the case.
New York Man Sentenced to 18 Months in Prison for Trafficking Exotic African CatsRead the Press Release
A New York man was sentenced to 18 months in prison today in the Western District of New York for violating the Lacey Act and the Animal Welfare Act by trafficking African wild cats.
Christopher Casacci, 39, of Amherst, was doing business as “ExoticCubs.com,” through which he advertised, imported and sold exotic African cats. Between February and June of 2018, Casacci imported and sold dozens of caracals (Caracal caracal) and servals (Leptailurus serval), for $7,500 to $10,000 each. Casacci claimed that he was operating as a big cat rescue organization in an attempt to avoid New York prohibitions against possessing and selling wild animals. Casacci also falsified transport documents to hide the true species of the cats, instead calling the animals domestic crossbreeds, such as Bengal cats or Savannah cats. Further, Casacci was not permitted to sell the cats because he was not approved to do so under the Animal Welfare Act.
“Selling wild animals as pets not only breaks the law, but also endangers local communities and environments,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “The Department of Justice is dedicated to protecting the public and our native wildlife from the irresponsible actions of wildlife traffickers.”
“The purpose of the Lacey Act and the Animal Welfare Act is to protect fish, wildlife and other animals, especially those that may be endangered, from individuals who seek to profit from trafficking,” said U.S. Attorney Trini E. Ross for the Western District of New York. “Enforcing these measures is important to ensure that animals, such as the exotic African cats in this case, are safeguarded.”
“Criminals who flout wildlife laws such as the Lacey Act put humans and animals at great risk,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service’s (USFWS) Office of Law Enforcement. “Wildlife trafficking is decimating the world’s natural resources, so it is essential we work with our partners to put a stop to these types of illegal activities. This will help protect against risks to human health and safety and to native wildlife and their habitats and ensure future generations can enjoy and benefit from our cherished wild heritage.”
Caracals, also known as the “desert lynx,” are wild cats native to Africa that grow to approximately 45 pounds. Servals, also wild cats native to Africa, grow to approximately 40 pounds. All of the animals were sold while still kittens and despite their size and wild nature, Casacci marketed them as “house pets.” Both species are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), and their commercial possession and sale is restricted under New York state law. Multiple kittens imported by Casacci died while in his care or days after he sold them, and many live kittens were seized from Casacci during the investigation. The seized animals are now permanently residing within accredited animal sanctuaries.
Casacci was previously indicted for his actions in January of 2020. The investigation was conducted by the U.S. Fish & Wildlife Service’s Office of Law Enforcement, under the direction of Special Agent in Charge Ryan Noel, and the New York State Department of Environmental Conservation, Bureau of Environmental Crimes Investigation.
The case is being prosecuted by Trial Attorney Patrick Duggan of the ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Aaron J. Mango of the Western District of New York.
Jury Convicts Chicago Man of Attempting to Provide Material Support to ISISRead the Press Release
A federal jury convicted an Illinois man today for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization.
According to court documents and evidence presented at trial, Thomas Osadzinski, 22, of Chicago, designed a process using a computer script to make ISIS propaganda more conveniently disseminated online. The process would automatically copy and preserve ISIS media postings in an organized format, allowing social media users to continue to conveniently access and share the content.
In 2019, Osadzinski shared his script and instructions for how to use it with individuals whom he believed to be ISIS supporters and members of pro-ISIS media organizations. Unbeknownst to Osadzinski, the individuals were covert FBI employees and a person confidentially working with law enforcement.
Osadzinski was convicted of attempting to provide material support and resources to a foreign terrorist organization and faces a maximum statutory penalty of up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Mark J. Lesko of the Justice Department’s National Security Division, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois and Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office made the announcement.
The Chicago Joint Terrorism Task Force, which is comprised of federal, state and local law enforcement agencies, investigated the case.
Assistant U.S. Attorneys Barry Jonas and Melody Wells for the Northern District of Illinois and Trial Attorney Alexandra Hughes of the National Security Division’s Counterterrorism Section are prosecuting the case.
Former Security Services Executives Plead Guilty to Rigging Bids for Department of Defense Security ContractsRead the Press Release
Two former employees of G4S Secure Solutions NV (G4S NV), pleaded guilty today to criminal antitrust charges stemming from their involvement in a conspiracy to rig bids, fix prices, and allocate customers for defense-related security services contracts. Both defendants are Belgian nationals residing in Belgium.
According to court documents, Bart Verbeeck, former Director of Sales, and Robby Van Mele, former Director of Operations, admitted that they, with their co-conspirators at competing firms, colluded to allocate security services contracts and to fix the prices at which the firms bid for contracts. The allocated contracts included those for guarding, mobile monitoring, and surveillance services with the United States, through the Department of Defense, and those with the North Atlantic Treaty Organization (NATO) Communications and Information Agency. As a result, the customers of the security services providers were deprived of a competitive bidding process and paid inflated, non-competitive prices for services.
Earlier this year, G4S NV pleaded guilty and was sentenced for its involvement in the conspiracy. The Department of Justice has also indicted several other members of the conspiracy. The department’s investigation remains ongoing.
“These individual guilty pleas, which follow the sentencing of G4S NV, demonstrate the division’s commitment to the vigorous enforcement of antitrust laws,” said Acting Assistant Attorney General Richard A. Powers of the Department of Justice’s Antitrust Division. “The division and its Procurement Collusion Strike Force partners will continue to investigate and prosecute both individual and corporate wrongdoers who seek to exploit the government procurement process.”
“Safeguarding the integrity of the defense procurement process is a vital aspect of our work at the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS),” said DCIS Deputy Director Paul K. Sternal. “Today’s pleas demonstrate our ability to work collaboratively to investigate and prosecute illegal conduct.”
“This result is an important step in enforcing the integrity of the government procurement process,” said Frank Robey, Director of the U.S. Army Criminal Investigation Division’s Major Procurement Fraud Unit. “We will continue to safeguard the interests of both the U.S. Army and the taxpayer.”
A criminal violation of Section 1 of the Sherman Antitrust Act carries a maximum term of imprisonment of 10 years and a maximum fine of $1 million. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either of those amounts is greater than the statutory maximum fine.
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 the federal, state, and local levels. In Fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, which is designed to deter, detect, investigate, and prosecute collusive schemes that target government spending outside of the United States.
To contact the PCSF, or to report information on market allocation, price fixing, bid rigging, or other anticompetitive conduct, go to https://www.justice.gov/procurement-collusion-strike-force.
Readout of Roundtable with Deputy Attorney General Lisa O. Monaco, Associate Attorney General Vanita Gupta and State and Local Law Enforcement LeadersRead the Press Release
In honor of Police Week, Deputy Attorney General Lisa O. Monaco and Associate Attorney General Vanita Gupta hosted a roundtable discussion Thursday with various leaders from state and local law enforcement to discuss the importance of health and wellness.
Deputy Attorney General Monaco opened the discussion by thanking everyone for their partnership in this area and reiterating the department’s commitment to the health and wellness of those in law enforcement. Associate Attorney General Gupta acknowledged how the weight of the pandemic has been borne by so many communities, including first responders and law enforcement professionals. Throughout the discussion, the department’s leadership emphasized the importance of having meaningful and honest conversations about mental health and meeting the needs of those who work and serve our communities under tremendous stress. They described some of the heartrending trends of officer suicide, and recognized the tireless work of those in attendance to address officer wellness.
Moderating the discussion was Community Oriented Policing Services (COPS Office) Acting Director Robert Chapman, who spoke about the office’s commitment to engaging the law enforcement community in order to better understand their needs. He also noted that the COPS Office announced $7 million in mental health and wellness grant funding for law enforcement. Those in attendance also shared recommendations on ways the department could better support law enforcement on these issues.
Associate Deputy Director Vince Davenport of the department’s Bureau of Justice Assistance (BJA) spoke about BJA’s commitment to funding, training and supporting law enforcement across health and wellness topics. For instance, he discussed the recent release of BJA’s COVID-19 toolkit for law enforcement.
Themes throughout the hour-long discussion ranged from the impact that COVID-19 has had on law enforcement and the need to fund mental health and wellness programs for not just sworn officers but professional staff and prosecutors, as well; to the need for investment in long-term sustainable care, such as counseling and therapy, to providing better training specific to mental and physical health to leadership. Deputy Attorney General Monaco and Associate Attorney General Gupta closed by emphasizing that officer wellness is a top priority across the federal government and pledged the department’s full support to improving the wellbeing of law enforcement professionals, their loved ones and the communities they serve.
Justice Department Participates in the 20th Annual International Competition Network ConferenceRead the Press Release
The Department of Justice Antitrust Division participated in the International Competition Network’s (ICN) 20th annual conference, virtually hosted by the Hungarian Competition Authority, on Oct. 13-15. Delegates from the ICN’s member jurisdictions, included agency leadership and staff, competition experts from international organizations and the legal, business, academic and consumer communities. Acting Assistant Attorney General Richard A. Powers of the Antitrust Division led the Department of Justice’s delegation.
“As we mark this significant milestone in the ICN’s history, it is an opportunity to reflect on our shared commitment to economic justice,” said Acting Assistant Attorney General Powers. “As the global competition landscape expands and changes, the ICN will continue to foster important collaboration and convergence amongst its members.”
The conference showcased the achievements of the ICN’s Advocacy, Agency Effectiveness, Cartel, Merger, and Unilateral Conduct working groups and examined a range of competition enforcement and policy issues, including the continuing economic effects of the COVID-19 pandemic. The conference also featured the preliminary results of the Federal Trade Commission-led “Third Decade” project, which seeks to assess the tools, topics, and operations of the ICN and provide a roadmap for its work during its third decade.
Acting Assistant Attorney General Powers spoke on a panel discussing issues and challenges in international cooperation in the fight against cross-border cartels. The Cartel Working Group breakout sessions focused on anti-cartel enforcement in the COVID-19 and digital eras. These sessions complemented the Cartel Working Group’s work product this year, which included a report summarizing trends and developments in anti-cartel enforcement during ICN’s second decade.
The Merger Working Group’s panel discussed merger control in the ICN’s third decade. The Merger Working Group’s breakout sessions explored topics stemming from key work product this year, including a report on joint ventures and updates to the ICN merger notification and procedures template.
The Advocacy Working Group’s panel focused on the importance of compliance programs, specifically for small and medium-size companies. Advocacy Working Group breakout sessions examined the ICN Advocacy Toolkit and the effectiveness of compliance from the business and compliance advisor perspectives. These sessions complemented the Advocacy Working Group’s work product this year, including a report on competition compliance.
The Agency Effectiveness Working Group’s panel focused on opportunities and challenges competition agencies may face in the post-COVID-19 era in areas such case prioritization, investigations, and digitalization and innovation efforts. Deputy Executive Officer Scott Minning participated in a breakout session to discuss the findings of the Agency Effectiveness Working Group’s report on digitalization, innovation and agency effectiveness. A second breakout session focused on a how competition agencies set enforcement priorities.
The Unilateral Conduct Working Group’s panel explored challenges competition agencies face when analyzing theories of harm and designing remedies in unilateral conduct cases in digital markets. The Working Group also discussed its working paper on dominance in digital markets.
Two other panels explored emerging topics of great interest and importance to members: effective international enforcement cooperation and the intersection of competition, consumer, and data privacy rules.
The ICN was created in October 2001 to increase understanding of competition policy and promote convergence toward sound antitrust enforcement around the world. It was founded by 15 agencies, including the Antitrust Division, and has grown to 140 agencies from 130 jurisdictions, supported by a wide network of non-governmental advisors from around the world.
Justice Department Anticorruption Task Force Launches New Measures to Combat Corruption in Central AmericaRead the Press Release
The Department of Justice today announced a tip line to help assist its Anticorruption Task Force fight corruption in El Salvador, Guatemala, and Honduras, a key component of the Vice President’s work to address the root causes of migration.
“As the Vice President recognized during her visit to Guatemala earlier this year, corruption and impunity in the region undermine democracy, fuel irregular migration, and pose a threat to our national security because they sustain criminal organizations and transnational crime,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “In June, the Justice Department announced an Anticorruption Task Force, and has now created a tip line so that anyone with information about corrupt actors in El Salvador, Guatemala, and Honduras who are violating U.S. laws or moving proceeds of their crimes in or through the United States, may now report the conduct in Spanish or English at [email protected].”
Tips regarding possible corruption or movements of ill-gotten funds that are received through the email address will be reviewed by the Department of Justice’s Anticorruption Task Force. The Task Force will determine whether the tip indicates a possible jurisdictional link to the United States – including use of the U.S. financial system – that would allow the Task Force to investigate, to prosecute, and, where appropriate, to forfeit and return stolen assets to the people of El Salvador, Guatemala, and Honduras.
The Task Force encourages our law enforcement partners in the region, or anyone with information about corruption-related crimes and possible violations of U.S. law, to contact the Task Force by emailing the FBI at [email protected].
Background on the Northern Triangle Anticorruption Task Force
As previously announced by U.S. Attorney General Merrick B. Garland, the Department of Justice is committed to work to combat official corruption in countries in Central America where the conduct violates U.S. law. To that end, the Department of Justice created an Anticorruption Task Force focused on El Salvador, Guatemala, and Honduras with representatives from each of the following Criminal Division components:
- The Foreign Corrupt Practices Act (FCPA) Unit of the Fraud Section, which enforces the U.S. criminal statute that generally prohibits certain persons — including U.S. companies and individuals, foreign companies whose shares trade on a U.S. stock exchange, and non-U.S. persons who engage in corrupt acts in the United States — from paying bribes overseas to obtain or retain business;
- The Kleptocracy Asset Recovery Initiative in the International Unit of the Money Laundering and Asset Recovery Section (MLARS), which is focused on recovering assets linked to foreign corruption and prosecuting related money laundering, especially when corruption proceeds are found in the United States or were obtained or transferred through abuse of the U.S. financial system; and
- The Narcotic and Dangerous Drug Section (NDDS), which enforces federal narcotics laws against the manufacturing, importation, and distribution of illegal drugs into and out of the United States and laundering of profits or of funds to promote or facilitate narcotics trafficking, including corruption resulting from narcotics trafficking.
The work of the Task Force is also supported by special agents of the FBI’s International Corruption Unit, the U.S. Drug Enforcement Administration, and the U.S. Department of Homeland Security. Allegations will be investigated by these law enforcement agencies, working in cooperation with the legal attachés and country representatives at our U.S. embassies, as well as with the Justice Department’s Task Force and the Department’s Office of International Affairs.
The task force is part of the Administration’s commitment to consistently engage in the region to address the root causes of migration. Corruption undermines government services and the rule of law, including critical institutions that provide health, education, and other services to those most in need. Corruption also deters attracting quality investment needed to create jobs. It is essential that we join efforts to increase transparency and bring swift prosecution for corruption.
Click here to view Spanish language press release.
Departamento de Justicia anuncia nuevas medidas para ayudar a combatir la corrupción en CentroaméricaRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy el establecimiento de una línea de denuncias para apoyar a la Fuerza de Tarea Anticorrupción que combate la corrupción en El Salvador, Guatemala and Honduras, un componente clave del trabajo de la Vice-Presidente para tratar con las causas fundamentales de la migración.
“Conforme reconoció la Vice Presidenta durante su visita a Guatemala a principios de año, la corrupción y la impunidad en la región debilitan la democracia, incentivan la migración, y representan una amenaza a la seguridad nacional toda vez que sostienen las organizaciones criminales y los crímenes transnacionales,” dijo Kenneth A. Polite Jr., Sub-Procurador General de la División Criminal del Departamento de Justicia. “En junio, el Departamento de Justicia anunció una Fuerza de Tarea para combatir la corrupción y ahora ha creado una línea de denuncias para que cualquier persona con información sobre actores corruptos en El Salvador, Guatemala y Honduras, quienes hayan violado las leyes de los Estados Unidos o quienes hayan movido el capital producto del crimen en o a través de los Estados Unidos, puedan informar tal conducta en español o inglés a través de [email protected].”
Denuncias sobre posibles actos de corrupción o movimientos de capitales mal habidos que hayan sido recibidas a través de la dirección de correo electrónico serán examinadas por la Fuerza de Tarea del Departamento de Justicia. La Fuerza de Tarea habrá de determinar si la denuncia indica un posible nexo jurisdiccional con los Estados Unidos -incluyendo el uso del sistema financiero de los Estados Unidos- lo que permitirá que la Fuerza de Tarea pueda investigar, procesar criminalmente y donde proceda, incautar y devolver los bienes robados al pueblo de El Salvador, Guatemala y Honduras.
La Fuerza de Tarea exhorta a nuestros colegas de las agencias de ley y orden en la región, así como a cualquiera con información relacionada a crímenes de corrupción y de posibles violaciones a las leyes de los Estados Unidos, a contactar a la Fuerza de Tarea enviando un correo electrónico a la siguiente dirección: c[email protected].
Trasfondo de la Fuerza de Tarea de Anticorrupción del Triángulo del Norte
Según fuera anunciado por el Secretario de Justicia de los Estados Unidos, Merrick B. Garland, el Departamento de Justicia está comprometido con trabajar para combatir la corrupción de oficiales en Centroamérica cuando la conducta viola las leyes de los Estados Unidos. A esos fines, el Departamento de Justicia ha creado una Fuerza de Tarea de Anticorrupción enfocada en El Salvador, Guatemala, y Honduras con representantes de los siguientes componentes de la División Criminal:
- La Unidad de la Ley de Prácticas Corruptas en el Extranjero de la División de Fraude (FCPA por sus siglas en inglés), la cual ejecuta los estatutos criminales que generalmente prohíben a ciertas personas – incluyendo a individuos y compañías de los E.U., compañías extranjeras que mercadean acciones en la bolsa de valores de E.U., y personas que no son ciudadanos de E.U., pero que llevan a cabo actos de corrupción en E. U. – de pagar sobornos fuera de E.U. para obtener o retener negocios.
- La Iniciativa de Cleptocracia y Recuperación de Activos de la Unidad Internacional de la Sección de Lavado de Dinero y Recuperación de Activos (MLARS por sus siglas en inglés), la cual está enfocada en recuperar activos vinculados a la corrupción extranjera y procesar criminalmente el lavado de dinero (blanqueo de capitales), especialmente cuando el capital de la corrupción es encontrado en Estados Unidos o fue obtenido o transferido a través del abuso del sistema financiero de los E.U.; y
- La Sección de Narcóticos y Drogas Peligrosas (NDDS por sus siglas en inglés), la cual ejecuta las leyes federales de narcóticos en contra de la manufactura, importación y distribución de drogas ilegales dentro y fuera de los Estados Unidos y el lavado de las ganancias y capital que promueve o facilita el tráfico de narcóticos, incluyendo la corrupción resultante del tráfico de narcóticos.
La labor de la Fuerza de Tarea es también apoyada por los agentes especiales de la Unidad de Corrupción del Buró Federal de Investigaciones (FBI por sus siglas en inglés), de la Administración de Control de Drogas (DEA por sus siglas en inglés), y el Departamento de Seguridad Nacional (DHS por sus siglas en inglés). Las alegaciones serán investigadas por este grupo de agencias de ley y orden, trabajando en cooperación con los agregados legales y los representantes de los países en cada nación extranjera, así como con la Fuerza de Tarea del Departamento de Justicia y la Oficina de Asuntos Internacionales del Departamento.
La Fuerza de Tarea es parte del compromiso de la Administración de envolverse consistentemente en la región para atender las causas principales que causan la migración. La corrupción socava los servicios gubernamentales y el estado de derecho. Socava instituciones críticas que proveen servicios de salud, educación y otros servicios a aquellos quiénes más lo necesitan. La corrupción impide que surjan las inversiones de calidad que son necesarias para crear empleos. Es imprescindible que unamos esfuerzos para aumentar la transparencia y llevar a cabo enjuiciamientos contra la corrupción en una manera efectiva y rápida.
Fuerza de Tarea del Departamento de Justicia de los Estados Unidos para Combatir la Corrupción en Centroamérica
Cheyenne Man Pleads Guilty to Being an Unlawful User of Methamphetamine in Possession of a FirearmRead the Press Release
Acting United States Attorney Bob Murray announced today that PHILIP JAY SCALES, age 44, of Cheyenne, Wyoming pleaded guilty to being an unlawful user of a controlled substance in possession of a firearm during a plea hearing held on October 12, 2021 in front of Federal District Court Judge Nancy D. Freudenthal.
Scales was arrested on July 29, 2021 in Cheyenne and indicted by a federal grand jury. He faces up to 10 years imprisonment, up to three years of supervised release, a fine of up to $250,000, and a $100 special assessment.
This crime was investigated by the United States Drug Enforcement Administration and the Cheyenne Police Department. The case is being prosecuted by Assistant United States Attorney Jonathan C. Coppom.
Case Number 0:21-cr-00093Cheyenne Man Pleads Guilty to Being an Unlawful User of Methamphetamine in Possession of a FirearmRead the Press Release
Acting United States Attorney Bob Murray announced today that PHILIP JAY SCALES, age 44, of Cheyenne, Wyoming pleaded guilty to being an unlawful user of a controlled substance in possession of a firearm during a plea hearing held on October 12, 2021 in front of Federal District Court Judge Nancy D. Freudenthal.
Scales was arrested on July 29, 2021 in Cheyenne and indicted by a federal grand jury. He faces up to 10 years imprisonment, up to three years of supervised release, a fine of up to $250,000, and a $100 special assessment.
This crime was investigated by the United States Drug Enforcement Administration and the Cheyenne Police Department. The case is being prosecuted by Assistant United States Attorney Jonathan C. Coppom.
Case Number 0:21-cr-00093Stafford County, Virginia, to Allow Islamic Cemetery in Response to Justice Department LawsuitRead the Press Release
The Justice Department today announced that it is dismissing its Religious Land Use and Institutionalized Persons Act (RLUIPA) lawsuit against Stafford County, Virginia, because it achieved the relief it sought in the case. Specifically, in response to the department’s complaint, the County repealed ordinances that prevented the All Muslim Association of America (AMAA) from developing a religious cemetery for persons of the Islamic faith, approved the AMAA’s site plan for the cemetery, and, in a private settlement with the AMAA to resolve the AMAA’s lawsuit, agreed to pay $500,000 in damages to the AMAA.
The notice of dismissal, which was filed today in the U.S. District Court for the Eastern District of Virginia, describes additional steps the County undertook to comply with RLUIPA after the department notified the County of its investigation. For example, the County has implemented an internal procedure to address complaints by any person who believes that the County may have violated RLUIPA, provided RLUIPA training to County employees who are responsible for implementing and enforcing zoning and land use regulations, posted notices of its obligations to comply with RLUIPA on several County website pages, and placed RLUIPA notices in land use application documents.
“RLUIPA protects people of all faiths in their right to exercise their religion,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to vigorously enforce RLUIPA — through litigation if necessary — against zoning regulations that unreasonably burden religious exercise, including by restricting a religious group’s right to bury its dead in accordance with religious rituals and customs.”
The complaint, filed in June 2020, alleged that Stafford County violated RLUIPA when it enacted an ordinance in December 2016 that prevented the AMAA from developing an Islamic cemetery; County officials had previously confirmed that the proposed cemetery was a permitted use at this property. The ordinance imposed new requirements, unsupported by any legitimate health or safety concerns, that the County knew the AMAA could not meet. After the United States sued, the County replaced the ordinance with another one, but it, too, imposed unreasonable constraints on the group’s ability to build a religious cemetery. In October 2020, the County repealed the second ordinance as well, and replaced it with one that allows for the establishment of cemeteries as a permitted use, without the approval of the County, in the zoning district where the AMAA’s property is located and removes other restrictions specific to cemeteries.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (833) 591-0291, or may submit a complaint through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Sinaloa Cartel Money Launderer Sentenced to 10 Years in PrisonRead the Press Release
A money launderer for the Sinaloa Cartel was sentenced yesterday in the U.S. District Court for the Southern District of California to 10 years in prison and a $50,000 fine for laundering approximately $15 million from the sale of methamphetamine, cocaine, and heroin that were smuggled into the United States by the Sinaloa Cartel.
Bianca Acedo-Ojeda, 34, of Sinaloa, Mexico, was extradited from Mexico to San Diego in November 2019, and on March 10, 2021, she pleaded guilty to conspiracy to commit money laundering. According to court documents, Acedo-Ojeda agreed with others to arrange, and did arrange, for the drug proceeds in the form of U.S. bulk currency to be smuggled into Mexico through ports of entry in Southern California in vehicles with hidden compartments. She also agreed with others to and did arrange for much of the U.S. bulk currency to be converted into Mexican pesos and transferred to drug traffickers.
“Money launderers are the lifeblood of criminal organizations,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “We will continue to vigorously prosecute money launderers associated with violent transnational drug trafficking organizations such as the Sinaloa Cartel. I want to thank the Government of Mexico for extraditing Acedo-Ojeda to the United States to face criminal charges. Through such partnerships, we will attack and work to dismantle dangerous drug cartels and their money laundering facilitators.”
“Those who launder funds in support the Sinaloa Cartel’s efforts to flood our borders with deadly drugs will face justice in this district,” said Acting U.S. Attorney Randy Grossman for the Southern District of California. “Stopping the flow of funds to one of the most violent criminal organizations in the world is essential to disrupting their narcotics trafficking and other criminal efforts.”
“This investigation and prosecution serve as a prime example of how Homeland Security Investigations (HSI) and federal prosecutors work together to bring down those involved in large scale money laundering in support of international drug trafficking organizations,” said Special Agent in Charge Chad Plantz for HSI San Diego. “HSI will continue to identify and investigate criminal organizations who seek to exploit our borders in furtherance of their illicit activity – if you engage in illegal finance activity to aid drug cartels, you will be caught and prosecuted.”
Six other defendants, including Acedo-Ojeda’s brother, have previously pleaded guilty in this case and been sentenced (Omar Ayon-Diaz; Osvaldo Contreras-Arriaga; Joel Acedo-Ojeda; Cesar Hernandez-Martinez, Gibran Rodriguez-Mejia, and Oscar Rodriguez-Guevara). Another defendant, Robert Gallegos-Lechuga, pleaded guilty to conspiracy to commit money laundering and is pending sentencing. In addition, approximately 20 other individuals linked to the conspiracy who served as drug and money couriers and drug stash house operators have entered guilty pleas and been sentenced in related cases.
The investigation was conducted by HSI. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Acedo-Ojeda in Mexico.
The case is being prosecuted by Senior Trial Counsel Mark Irish of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Larry Casper of the U.S. Attorney’s Office for the Southern District of California.
Rhode Island Man Sentenced to over 33 Years in Federal Prison for Leadership Role in International Drug Trafficking OrganizationRead the Press Release
A Rhode Island man was sentenced today to 400 months in prison for his role in an international fentanyl distribution conspiracy.
Steven Barros Pinto, 40, of Rhode Island, was sentenced by Chief District Court Judge Peter D. Welte in Fargo, North Dakota today. Pinto was part of a Rhode Island organization that was distributing fentanyl and fentanyl analogues from Canada and China. After a five-week trial that began on June 8 in Fargo, the jury returned guilty verdicts against Pinto on various charges including conspiracy to distribute controlled substances, money laundering conspiracy, continuing criminal enterprise, and obstruction of justice. One of Pinto’s principal U.S.-based partners in this criminal conspiracy, Anthony Santos Gomes, 36, was sentenced to 30 years in prison on July 30.
This investigation started on Jan. 3, 2015, with the overdose death in Grand Forks, North Dakota, of Bailey Henke, and eventually led to the indictment, and subsequent conviction, of multiple defendants including Daniel Vivas Ceron, 41, of Colombia, who pleaded guilty before U.S. Magistrate Judge Alice R. Senechal in Fargo in July 2019 to continuing criminal enterprise, conspiracy to distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death, and money laundering.
In 2021, three Canadian nationals from Quebec, Canada, Jason Joey Berry, 38; Xuan Cahn Nguyen, 41; and Marie Um, 41, were extradited from Canada to the United States. These defendants are detained and are currently awaiting trial scheduled on Oct. 4, 2022 in Fargo. On Aug. 31, 2021, the U.S. Department of State offered a reward of up to $5 million for information leading to the arrest and/or conviction of People’s Republic of China national Zhang Jian, aka Hong Kong Zaron, 42, a fugitive in this transnational investigation.
Assistant Attorney General, Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Nicholas W. Chase of the District of North Dakota, and Acting U.S. Attorney Scott Asphaug of the District of Oregon made this announcement.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; North Dakota Bureau of Criminal Investigation; U.S. Drug Enforcement Administration; U.S. Postal Inspection Service; IRS-Criminal Investigation’s Fargo Field Office; Grand Forks Narcotics Task Force; Royal Canadian Mounted Police; Portland Oregon Police Bureau – Drugs and Vice Division, Portland HIDTA Interdiction Task Force; Oregon State Police; and the Grand Forks Police Department.
The case is part of “Operation Denial,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and fentanyl analogues and was significantly aided by the national and international coordination led by the multi-agency Special Operations Division.
Trial Attorneys Kaitlin Sahni and Imani Hutty of the Justice Department’s Narcotic and Dangerous Drug Section; Assistant U.S. Attorney Christopher C. Myers of the District of North Dakota; and Assistant U.S. Attorney Scott Kerin of the District of Oregon prosecuted this case.
LyondellBasell Companies Agree to Reduce Harmful Air Pollution at Six U.S. Chemical PlantsRead the Press Release
Three U.S. subsidiaries of Dutch chemical giant LyondellBasell Industries N.V. (Lyondell) have agreed to make upgrades and perform compliance measures estimated to cost $50 million to resolve allegations they violated the Clean Air Act and state air pollution control laws at six petrochemical manufacturing facilities located in Channelview, Corpus Christi, and LaPorte, Texas, and Clinton, Iowa. Lyondell will also pay a $3.4 million civil penalty. The settlement, announced today by the Department of Justice and the U.S. Environmental Protection Agency (EPA), will eliminate thousands of tons of air pollution from flares.
According to the complaint, the companies failed to properly operate and monitor their industrial flares, which resulted in excess emissions of harmful air pollution at five facilities in Texas and one in Iowa. Lyondell’s subsidiaries regularly “oversteamed” the flares at their facilities and failed to comply with other key operating constraints to ensure the volatile organic compounds (VOCs) and hazardous air pollutants contained in the gases routed to the flares are effectively combusted.
The EPA identified potential environmental justice concerns at the two Channelview facilities for exposure to particulate matter (2.5 micron), ozone, toxic cancer risk, and respiratory hazard. The significant emissions reductions of VOCs, HAPs, and greenhouse gases that today’s settlement secures at the Channelview facilities serve to reduce exposure in the community to some of the same air pollutants that they are disproportionately exposed to.
“The Justice Department and EPA will continue to enforce the law against petrochemical plants that violate the Clean Air Act,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “In particular, we are committed to reducing harmful air pollution from unnecessary and improper flaring, especially near overburdened communities with environmental justice concerns.”
“This settlement will require LyondellBasel to install pollution control and emissions monitoring equipment at six facilities in Texas and Iowa, reducing emissions of greenhouse gases and other harmful gases by thousands of tons per year,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “Those controls, plus a requirement for fence line monitoring of benzene emissions, will result in significant benefits for the local communities in Texas and Iowa.”
The settlement requires the companies to install and operate air pollution control and monitoring technology to reduce flaring and the resulting harmful air pollution from 21 flares at the six facilities. Once fully implemented, the pollution controls are estimated to reduce emissions of climate-change-causing greenhouse gases, including CO2, methane, and ethane, by almost 92,000 tons per year. The settlement is also expected to reduce emissions of ozone-forming VOCs by almost 2,700 tons per year and of toxic air pollutants, including benzene, by nearly 400 tons per year.
The pollutants addressed by the settlement can cause significant harm to public health. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. Chronic exposure to benzene, which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women. Flares are also often large sources of greenhouse gas emissions.
Flares are devices used to combust waste gases that would otherwise be released into the atmosphere during certain industrial operations. Well-operated flares should have high “combustion efficiency,” meaning they combust nearly all harmful waste gas constituents, like VOCs and hazardous air pollutants, and turn them into water and carbon dioxide. The agreement is designed to improve Lyondell’s flaring practices. First, it requires Lyondell to minimize the amount of waste gas that is sent to the flares, which reduces the amount of flaring. Second, Lyondell must improve the combustion efficiency of its flares when flaring is necessary.
Lyondell will take several steps to minimize the waste gas sent to its flares at each facility. At certain facilities, Lyondell will operate flare gas recovery systems that recover and “recycle” the gases instead of sending them to be combusted in a flare. The flare gas recovery systems will allow Lyondell to reuse these gases as a fuel at its facilities or a product for sale. Lyondell will also create waste minimization plans for each facility to further reduce flaring. For flaring that must occur, the agreement requires that Lyondell install and operate instruments and monitoring systems to ensure that the gases sent to its flares are efficiently combusted.
Lyondell will also perform air quality monitoring that is designed to detect the presence of benzene at the fence lines of the six covered plants. Monitoring results must be publicly posted, providing the neighboring communities with more information about their air quality. The monitoring requirements also include triggers for root cause analysis and corrective actions if fence line emissions exceed certain thresholds. Flare compliance is an ongoing priority for EPA under its National Air Toxics Initiative.
The consent decree, lodged in the Southern District Court of Texas, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
For more information about this settlement please visit: https://www.epa.gov/enforcement/equistar-chemicals-lp-lyondellbasell-acetyls-llc-and-lyondell-chemical-company-clean.
Justice Department, EPA and Texas Settle with DuPont and PMNA and Require Action to Address Violations of Waste, Water and Air Environmental Laws at Texas FacilityRead the Press Release
The U.S. Department of Justice, the Eastern District of Texas, the U.S. Environmental Protection Agency (EPA) and the Texas Commission on Environmental Quality (TCEQ) announced a settlement with E.I. Du Pont de Nemours and Company (DuPont) and Performance Materials NA, Inc. (PMNA) to resolve alleged violations of hazardous waste, air and water environmental laws at the PMNA Sabine River chemical manufacturing facility in Orange, Texas. Under this settlement agreement, DuPont and PMNA will conduct compliance audits, control benzene emissions and perform other injunctive relief to address violations at the facility. Defendants will also pay a $3.1 million civil penalty and attorney’s fees to the State of Texas. These measures will benefit nearby communities already overburdened by pollution by reducing uncontrolled emissions of hazardous air pollutants and unpermitted discharges from surface impoundments at the facility.
In a joint complaint filed on Oct. 13, the United States, on behalf of the EPA, and the State of Texas asserted claims against DuPont and PMNA for alleged violations of the Resource Conservation and Recovery Act (RCRA), the Clean Water Act (CWA), the Clean Air Act (CAA), Section 7.002 of the Texas Water Code and applicable regulations at the former DuPont facility now owned and operated by PMNA. The alleged RCRA violations include failure to make hazardous waste determinations, the treatment, storage or disposal of hazardous waste without a RCRA permit and failure to meet land disposal restrictions. The alleged CWA violations include unpermitted discharges of process wastewater in violation of the facility’s Texas Pollutant Discharge Elimination System permits. The alleged CAA violations include failure to comply with the national emission standards for hazardous air pollutants for benzene waste operations and for miscellaneous organic chemical manufacturing for certain waste streams.
“The petrochemical industry must operate in compliance with environmental laws,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will continue to hold operators accountable to address pollution from industrial operations that violate the law, such as those at the Sabine River facility, and to enhance public health and the environment, particularly in surrounding communities overburdened by industrial pollution.”
“The Eastern District of Texas is a proud home to numerous natural resources including lakes, rivers and streams, which span the district,” said Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas. “We are also home to some of the leading names in industry. Generally, these two co-exist harmoniously. However, when industry violates applicable laws and harms the environment, the Eastern District of Texas is committed to taking steps to hold that actor accountable and require better compliance in the future.”
“This settlement ensures proper management of hazardous wastes, requires a comprehensive review of the facility’s environmental compliance across all media, and ensures cleanup of contamination from past operations,” said Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance Assurance. “This case not only benefits the environment but demonstrates our commitment to advancing justice and equity to communities across Texas.”
“TCEQ is committed to protecting human health and the environment consistent with sustainable economic development,” said Executive Director Toby Baker for TCEQ. “This settlement is a representation of that commitment.”
Under the settlement, an independent third party will conduct multimedia compliance audits to review the facility’s compliance with RCRA, the CWA and the CAA, as well as related state laws and regulations. Additionally, the defendants will undertake measures to monitor and control benzene emissions and pH levels in wastewaters. They also will conduct soil, sediment or groundwater sampling to determine the extent of contamination within and from certain surface impoundments. The defendants will perform this sampling and necessary cleanup work pursuant to the Texas Risk Reduction Program.
The consent decree was lodged with the U.S. District Court for the Eastern District of Texas on Oct. 13 and is subject to publication in the Federal Register and an opportunity for public comment.
For more information on this settlement: https://www.epa.gov/enforcement/dupont-sabine-settlement.
Justice Department Requires Divestitures in Neenah Enterprises Inc.’s Acquisition of US FoundryRead the Press Release
The Department of Justice announced today that it will require Neenah Enterprises Inc. (NEI), U.S. Holdings Inc. (U.S. Holdings), and U.S. Foundry and Manufacturing Corporation (US Foundry) to divest certain gray iron municipal castings assets in order to proceed with NEI’s proposed acquisition of substantially all of the assets of US Foundry. NEI and US Foundry are two of only three significant suppliers of gray iron municipal castings in eleven eastern and southern states. Gray iron municipal castings are customized molded iron products such as manhole covers and frames used to access subterranean areas and grates and drains used to direct water in roadway, parking, and industrial areas.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
“NEI and US Foundry provide castings that are essential to public works and construction projects in towns and municipalities throughout the United States,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “The transaction, as originally proposed, would have led to higher prices, lower quality, and slower delivery times for essential pieces of infrastructure. Today’s settlement will ensure that towns and municipalities across the country will continue to benefit from competition for these critical products.”
Under the terms of the proposed settlement, the parties must divest all rights, titles, and interests in over 500 gray iron municipal casting patterns to D&L Foundry Inc. (D&L Foundry), or an alternate acquirer approved by the United States. D&L Foundry is an established provider of gray iron municipal castings in the United States, but with sales primarily outside the states where NEI and US Foundry compete. With the divested patterns, D&L, or an alternate qualified acquirer, will be able to expand into the states where NEI and US Foundry had competed.
NEI, a corporation headquartered in Neenah, Wisconsin, produces gray and ductile iron castings for the industrial and municipal sectors. NEI operates two foundries in Neenah, Wisconsin, and Lincoln, Nebraska.
US Foundry is a wholly-owned subsidiary of U.S. Holdings, a corporation headquartered in Hialeah, Florida. US Foundry produces gray iron municipal castings at its foundry located in Medley, Florida.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Jay Owen, Acting Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon finding it is in the public interest.
The claims resolved by the settlement are allegations only and there has been no determination of liability.